The government has paid GH¢5 billion to road contractors as part of attempts to settle long-standing arrears in the industry, according to Kwame Governs Agbodza, Minister for Roads and Highways.
In a Tuesday, October 14, 2025, interview with Citi FM from Beijing, Mr. Agbodza stated that the payment was paid without the need for borrowing from outside sources.
According to him, “As of Friday, about GH¢5 billion has been paid to contractors whose certificates have been validated. That is huge. It’s the biggest single payment to road contractors at a particular time in the life of any government in recent history.”
Mr. Agbodza clarified that the payment was made after a thorough validation process conducted by the Auditor-General’s Department and the Ministry of Finance to confirm all valid claims prior to delivery.
“If we had rushed to pay, we would have thrown away part of your money because during the validation, it turned out that some of the amounts we were told we owed were not exactly so,” he stated.
In addition to distinct arrears on Cocoa Roads projects, he pointed out that the administration inherited over GH¢40 billion in outstanding obligations across the road sector, including GH¢21 billion under the administration of Ghana (GoG) account and over GH¢8 billion under the Road Fund.
“We are told that what was presented to us at transition was GH¢21 billion GoG indebtedness and about GH¢5 billion Road Fund debt. That excludes Cocoa Roads. Without a doubt, we are close to about GH¢40 billion in work done and unpaid,” he said.
The Roads Minister stated that the government was taking steps to pay contractors gradually and that it could not be expected to pay the full amount at once, as it was only in its first year.
“If a government that is one year old is able to pay GH¢5 billion of the arrears inherited, without borrowing, I think that government must be commended,” he added, praising President John Mahama and the Finance Minister for their “prudence and effective leadership.”
According to Mr. Agbodza, payments under the Road Fund, which is now the Road Maintenance Trust Fund, have begun, and as more funds become available, unpaid arrears will be paid off.
He addressed concerns on the sluggish pace of capital investment in the first half of the year by stating that the procurement and design processes for the government’s flagship Big Push infrastructure projects were almost finished and that the projects were proceeding according to plan.
“The Big Push projects have just landed on site. You will see more expenditure on the new projects coming in towards the end of the year into next year. We are not off target,” he stated.
More than GH¢70 billion worth of new road projects have already been awarded, he added, while current construction on previously halted projects including the Ofankor, Kasoa, and Adenta–Dodowa roads is moving forward without being cancelled.
As a member of President Mahama’s team, Mr. Agbodza is presently in Beijing for the Ghana Presidential Investment Forum, which has drawn over 600 Chinese investors looking to explore prospects in industries including renewable energy, mining, highways, and agriculture.
Source: newsthemegh.com