Kwame Governs Agbodza, Minister for Roads and Highways, has urged contractors working on ongoing road projects to engage with the government to renegotiate contractual terms so that projects can be completed by the end of 2027.
In light of the nation’s budgetary limitations, the Minister states that the government is taking a pragmatic and cooperative approach to settling unresolved “cost to complete” negotiations.
During his statewide road inspection tour on Monday, May 11, 2026, Mr. Agbodza spoke to road contractors in the Eastern Region and urged them to be flexible in negotiations and refrain from making excessive claims related to interest charges and price changes.
He stated, “I would encourage the contractors working here also to know that when the discussion about cost to complete comes, it cannot be the usual discussion.”
He stressed that the government’s objective is to work jointly with contractors to complete projects while ensuring they do not incur losses.
“All we want to do together is work together to complete this project. So be prepared to also bend backwards to take some heat, but have enough money to be able to complete the project so that at least you will not say that you did this project and you have made a loss,” he stated.
Mr. Agbodza advised against viewing the renegotiation process as “business as usual,” in which contractors frequently add interest and volatility claims to contracts.
The Minister revealed that the Ghana Highway Authority’s Chief Executive has been instructed to start consulting contractors and project consultants right now in order to wrap up talks by the end of the month.
“We do not want that one to happen. But be prepared that you will work with us to make sure that we will not make it business as usual, where the normal thing, add this fluctuation, add this, add this,” he said.
“We are asking the chief executive immediately to engage your consultants and yourselves from now so that before the end of the month, we can come to a conclusion,” he noted.
He states that in order to give contractors enough time to do the work, the government intends to extend project timetables by at least a year.
He clarified that although many of the present contracts are technically inactive or unfit for use, the government does not plan to terminate them and start new procurement procedures because doing so would result in a greater financial burden.
“Currently, all of your projects are in abeyance or actually dead. You don’t have a contract that is fit for purpose. But we cannot say that we are coming to terminate the project and now start a new procurement process. We have to work with you,” he said.
“Some of you will be happy that we terminate, because you’ll come back with a new mobilisation and everything to start the work. But we know that that is a bigger hit to government coffers,” he explained.
Mr. Agbodza stated that renegotiation is still the more fiscally responsible choice for the government, even though he accepted that certain contractors could favour contract termination because it could allow for new mobilisation payments and amended project parameters.
Regardless of when the projects were awarded, he reassured contractors that the government is still dedicated to involving all stakeholders.
The Minister expressed hope that the projects may be finished by the end of 2027 with cooperative contractors and successful talks.
“Everybody can tell how much you need to finish the project. So we’ll work with you. And I want to encourage you to feel free to join the discussion and bring on board your views as to how we’ll finish this,” he added.
Source: newsthemegh.com