The Minister of Roads and Highways-designate, Governs Kwame Agbodza, has expressed concern over the country’s road sector debt, which currently stands at GH¢15 billion, encompassing both principal and accrued interest.
Appearing before the Appointments Committee on January 20, 2025, Agbodza provided a breakdown of the debts and their corresponding interests from 2017 to date, emphasising that the structure of contracts in Ghana has led to this alarming accumulation, failing to provide value for money for the government and contractors.
He detailed the debt figures as follows:
“The NPP government is leaving a minimum of GH¢100 million in commitments. What you should be worried about is that, as of today, certificates unpaid by the Government of Ghana amount to about GH¢20 billion. The Road Fund debt alone stands at about GH¢15 billion. If you take the indebtedness up to 2025, this debt is a significant concern,” he stated.
He elaborated further, “Look at these details: In 2018, we owed about GH¢113 million, and the interest on this amount has risen to GH¢665 million. For 2019, the interest on GH¢210 million is now GH¢960 million. In 2020, we owed GH¢424 million, and the interest has ballooned to GH¢1.5 billion. By 2021, the debt was GH¢616 million, and the current interest is GH¢1.69 billion. For GH¢693 million owed in 2022, the interest now stands at GH¢1.4 billion.”
Agbodza stressed the need for reforms in the way contracts are signed to prevent further escalation of debt.
“The question is, how do I explain to taxpayers in Adaklu that we owe GH¢113 million, yet we are paying GH¢665 million in interest? These issues concern all of us in the road sector. This is not money that has been thrown away, but rather a result of how contracts are written in this country. If someone raises a certificate and it isn’t paid on time, 30% interest accrues. This is why we are now paying GH¢15 billion in Road Fund debt alone,” he explained.
Agbodza proposed working closely with the Finance Minister if approved to address the inefficiencies in contract agreements and debt management.
“This cannot continue. It is not value for Ghana, nor is it value for the contractor. It is money being wasted. The way forward is to sit down with the Finance Minister and restructure this system,” he added.
SSD/MA
Watch as Agbodza breaks down road sector debts
