Ghana’s Minister of Roads and Highways, Kwame Agbodza, has initiated discussions with local banks to explore innovative financing models for critical road projects across the country. The move aims to address the government’s longstanding indebtedness to road contractors, many of whom have outstanding loans with these banks.
Minister Agbodza met with representatives from the Agricultural Development Bank, National Investment Bank, and Ecobank Ghana Limited to discuss strategic financing options. Key areas of focus included reintroducing road tolls, renegotiating interest on delayed payments, and financing major road projects under the government’s “Big Push” initiative.
The minister assured the banks of the government’s commitment to settling outstanding payments owed to contractors, emphasizing that timely payments are crucial for the health of state-owned banks. He also urged the banks to consider revising their lending policies and interest rates to create a supportive financial environment for road contractors.
Additionally, Agbodza encouraged the Agricultural Development Bank to prioritize stalled Cocoa Roads Projects, vital for improving access to cocoa-growing regions and enhancing Ghana’s agricultural exports. The banks expressed interest in supporting the road sector through syndicated funding arrangements and investing in technologies for efficient road toll collection.
This development highlights the government’s commitment to fostering Public-Private Partnerships to accelerate road infrastructure development and improve the overall condition of Ghana’s road network.
Ruth Abla ADJORLOLO
