Ghana’s efforts to complete 55 stalled infrastructure projects have hit a snag, with the country’s Finance Minister, Casiel Ato Forson, revealing that the projects may be delayed for up to 12 years. The delay is attributed to the limitations set by the International Monetary Fund (IMF)-supported debt restructuring programme.
Finance Minister Casiel Ato Forson revealed this when he presented the 2025 Budget Statement, themed “Resetting the Economy for the Ghana We Want”.
The projects, which include vital initiatives like the Effia Nkwanta Regional Hospital, the Kejetia Market Phase 2, and the Tema-Aflao road project, have been halted due to previous debt restructuring efforts. A staggering US$3 billion in undisbursed loans and approximately US$300 million in outstanding interim payment certificates (IPCs) are currently tied up in these stalled ventures.
The cumulative effect of delayed payments and demobilization of workers from construction sites could lead to an alarming US$1.1 billion in cost overruns. Minister Forson painted a bleak picture, stating that the country is now faced with the reality that it will take at least 12 years to complete the projects, assuming the annual disbursement ceiling of US$250 million continues under the IMF arrangement.
The IMF-supported programme has imposed strict limits on the disbursement of bilateral loans, severely restricting the pace at which projects can be resumed and completed. However, Minister Forson reassured Parliament that the government is actively engaged in negotiations to resolve the challenges posed by the disbursement ceilings.
The long wait for the completion of these critical projects is expected to have ripple effects on various sectors of the economy. As the government navigates the complex web of debt restructuring and loan disbursements, Ghanaians can only hope that a solution will be found to expedite the completion of these vital infrastructure projects.
Minister Forson revealed this when he presented the 2025 Budget Statement, themed “Resetting the Economy for the Ghana We Want”.
Source: Ruth Ablah Adjorlolo
