Ghana’s Ministry of Roads and Highways has initiated a validation process to determine the government’s actual indebtedness to road contractors. This announcement was made by Kwame Agbodza, the sector minister, during an engagement with road contractors earlier this week.
The validation process will involve gathering data on all Interim Payment Certificates (IPCs) in the system from various agencies, including the Ministry, Department of Urban Roads, Department of Feeder Roads, Ghana Highways Authority, and the Road Fund. This exercise aims to provide clarity on the government’s financial obligations to road contractors.
In addition to the validation process, discussions also centered around key issues affecting the road sector, such as:
- Decapping the Road Fund: A review of the current funding structure to ensure sustainable financing for road projects.
- Debt Sustainability: Strategies to manage debt and ensure the sector’s financial stability.
- Judicious Use of Resources: Efficient allocation of scarce resources to maximize impact.
- Payment of Interest on Delayed Payments: Negotiations to address the issue of delayed payments and associated interest charges.
- Re-introduction of Road Tolls: Exploring the possibility of reinstating road tolls to generate additional revenue for road projects.
These efforts demonstrate the Ministry’s commitment to transparency, accountability, and sustainable management of the road sector. By addressing these critical issues, Ghana can ensure the successful delivery of road projects, promoting economic growth and improved connectivity across the country.
Ruth Abla ADJORLOLO
