Minister for Roads and Highways Kwame Governs Agbodza has revealed that the government will settle GHC4 billion out of the large debt owed to road contractors.

Currently, the government owes road contractors GHC21 billion, according to the Roads Minister.

President John Dramani Mahama has announced the government's plan to begin paying debts owed to road contractors within this month.

This, he said, would help revive road construction projects that have been abandoned.

“The Ministry of Finance has made dedicated financial allocations to address a substantial portion of the outstanding debts. We expect this to bring much-needed relief to the contractors and help accelerate the delivery of critical infrastructure,” the President stated.

He made these revelations during a meeting with members of the Council of State at the Presidency on Monday, July 7.

President Mahama emphasized his government's commitment to infrastructure development under his administration’s 24-hour economy agenda.

On his part, prioritising road construction and the swift resumption of stalled road projects holds the key to promoting economic growth and productivity by ensuring adequate regional connectivity.

The announcement has been met with excitement and optimism by many stakeholders in the construction sector.

The Ghana Institute of Engineers and the Association of Road Contractors have largely welcomed the president's announcement, but they have called for transparency.

They have called on the government to publish clear timelines and payment schedules to ensure that contractors can plan and mobilize resources effectively.

In March this year, Deputy Minister for Roads and Highways, Alhassan Suhuyini, acknowledged the significant financial burden facing the government to clear outstanding debts owed to contractors and suppliers.

His remarks followed the presentation of the 2025 budget by Finance Minister Dr. Cassiel Ato Forson, who disclosed that the government’s total commitments to contractors stand at a staggering GH¢67.5 billion.

This amount comprises GH¢49.2 billion in unpaid Interim Payment Certificates and invoices from Ministries, Departments, and Agencies (MDAs), as well as GH¢18.3 billion in outstanding Bank Transfer Advice at the Controller and Accountant-General’s Department.

Speaking to The Independent Ghana on Tuesday, Suhuyini admitted that while the government is committed to addressing some of these debts, it cannot clear the full amount immediately.

"They should have absolute confidence that we will settle some of the debts," he assured. "However, we obviously cannot clear everything at once. The total financial commitment stands at about GH¢100 billion, with unpaid certificates alone amounting to GH¢21 billion. The decision to uncap the Road Fund is a step in the right direction, but it will only make GH¢2 billion available—far from enough to cover even the unpaid certificates."

He emphasized the importance of prioritizing road maintenance, a sector that has suffered due to poor upkeep. "The minister has stressed that a significant portion of these funds will be directed toward road maintenance. This is a smart move because our poor maintenance culture has resulted in roads deteriorating within 8 to 10 years instead of lasting longer," he explained.

Suhuyini noted that, in addition to paying off some existing road maintenance debts, the government is looking at a broader infrastructure push. "With GH¢10 to GH¢13 billion allocated under the ‘Big Push’ initiative, several new road projects will commence while some outstanding debts will also be retired," he added.

As Ghana’s economy is valued at GH¢1.2 trillion, stakeholders are keen on seeing how the government will balance infrastructure development with financial obligations. if you look at the big push and the amount that is allocated, about GHC10 to GHC13 billion, many of the projects under the big push are road projects so that will enable us, you know, start new projects and also retire some of the old debts," he said.