Hon. Kwame Agbodza, the Minister of Roads and Highways, has started talking with a few regional banks about investigating creative and smart financing options for important road projects throughout the nation.
In order to settle the government’s long-standing debt to road contractors—many of whom still owe money to these banks—engagements were held with the Agricultural Development Bank (ADB), National Investment Bank (NIB), and Ecobank Ghana Limited.
Other important topics of discussion were financing large road projects under the government’s “Big Push” strategy, reintroducing road tolls, negotiating interest on late payments, and enhancing communication between the ministry and financial institutions.
Hon. Agbodza reassured the banks during these talks that the government would settle any unpaid invoices owing to contractors.
“With regard to the indebtedness, we will pay. The reality is that the health of state-owned banks is adversely affected when the government fails to pay contractors on time, especially those who have taken loans from these banks.”
In order to establish a favorable financial climate for road contractors, he advised the banks to think about changing their lending guidelines and interest rates and to embrace creative strategies.
Hon. Agbodza also urged ADB to look at methods to help blocked Cocoa Roads Projects, which are essential for expanding Ghana’s agricultural exports and facilitating access to cocoa-growing regions.
“Let’s not forget that you are the Agricultural Development Bank, so perhaps you should prioritize cocoa roads over urban projects,” he noted.
The banks indicated their desire to assist the road industry by investing in technologies for effective road toll collecting and forming syndicated funding agreements.
These interactions demonstrate the government’s dedication to promoting Public-Private Partnerships (PPP) with the goal of quickening the development of road infrastructure and enhancing the general state of the nation’s road network.
Source: newsthemegh.com