The Minister of Roads designate, Kwame Governs Agbodza, has resolved to review road contracts to ensure value for money and eliminate arbitrary payments.
Speaking during his vetting, Mr. Agbodza emphasized that a comprehensive reassessment of road contracts is essential to address inefficiencies in the award and financing processes.
“Road contracts have to be reviewed. We need to sit back and find out how we award road contracts—where nobody knows how it is going to be financed. We will sit down with industry players to determine the way forward,” he stated.
The road sector has been plagued by a significant funding gap, and the Minister of Roads designate, Mr. Kwame Governs Agbodza, emphasized the need for a sustainable approach to address this challenge. He suggested that the government should aim to generate or allocate between GH¢6 billion and GH¢10 billion annually from domestic resources—not borrowed funds—for road infrastructure.
“We need to explore ways of funding roads using our own resources and ensure transparency by making the process open to all Ghanaians. We will engage Ghanaians on how best to fund roads,” he stated.
Mr. Agbodza also disclosed that the previous administration left behind a substantial commitment of at least GH¢100 billion in road-related liabilities, further compounding the challenges facing the sector.
According to data from road agencies, Ghana’s road network spans 100,000 kilometers, with only half of it in a motorable condition. The minister-designate acknowledged the dire state of many roads and outlined plans for targeted interventions.
“We need to make roads motorable. We will take a holistic review of the roads, and for those in the worst state, we will work to bring them to better condition.”
Managing debt and unpaid certificates
Mr. Agbodza disclosed that the previous administration left behind a minimum of GH¢113 billion in commitments, including GH¢20 billion in unpaid certificates for road projects. He highlighted that the growing interest on this debt—currently at GH¢665 million—poses a significant financial burden on the government.
“At the transition committee as of today, the NPP government is leaving a minimum of GH¢113 billion in commitments. What we should be worried about, though, is that in that same document, they are saying that certificates unpaid as of today from the Government of Ghana amount to about GH¢20 billion. More worrying is that the interest on this GH¢113 billion is GH¢665 million due to the nature of the contracts.”
He called for urgent action to address the backlog of unpaid certificates and high-interest rates, stressing the need for sustainable financing options for road construction.
“We will explore ways to finance road construction sustainably from our own resources rather than relying on public-private partnerships, which often create additional fiscal challenges.”
Reinstating road tolls with technology
Mr. Agbodza announced plans to reinstate road tolls in a modernized and efficient format, eliminating the need for physical tollbooths. He criticized the previous administration’s decision to cancel road tolls, describing it as a significant loss of revenue for infrastructure development.
“We cautioned the government not to cancel road tolls but to find a way to improve the system. The previous system had its flaws, particularly in preventing revenue leakages, but it could have been enhanced rather than dismantled,” he explained.
The minister-designate further described the cancellation of road tolls as an act of “illegality,” noting that it was implemented unilaterally without proper consultation or due process.
Vision for the future
Mr. Agbodza expressed optimism about addressing the challenges in Ghana’s road infrastructure. He reiterated his commitment to ensuring that road projects deliver value for money and are executed in a transparent, efficient, and sustainable manner. His proposed initiatives, including the use of technology in toll collection and the review of existing contracts, aim to enhance road infrastructure and alleviate the financial strain on the state.
His emphasis on collaboration with industry stakeholders, coupled with a focus on accountability and innovation, signals a fresh approach to managing Ghana’s road sector challenges.
By Eugene Davis, PARLIAMENT HOUSE
