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Government clears GH¢5bn road debt, targets gradual payment of GH¢40bn arrears – Agbodza

Government clears GH¢5bn road debt, targets gradual payment of GH¢40bn arrears – Agbodza
Governs Kwame Agbodza.
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By Benjamin Nii Nai Anyetei

The Minister for Roads and Highways, Kwame Governs Agbodza, has announced that government has paid GH¢5 billion to road contractors as part of efforts to clear longstanding arrears in the road sector.

Speaking in an interview with Citi FM on Tuesday, October 14, 2025, Mr. Agbodza said the payment represents the largest single settlement made to contractors by any government in recent history, adding that it was achieved without foreign borrowing.

“As of Friday, about GH¢5 billion has been paid to contractors whose certificates have been validated. That is huge. It’s the biggest single payment to road contractors at a particular time in the life of any government,” he said.

According to him, the payment followed a rigorous validation exercise conducted by the Ministry of Finance and the Auditor-General’s Department to verify legitimate claims and ensure accountability.

“If we had rushed to pay, we would have thrown away part of your money, because during the validation, it turned out that some of the amounts we were told we owed were not exactly so,” he explained.

Mr. Agbodza revealed that the government inherited about GH¢40 billion in unpaid obligations across the road sector comprising GH¢21 billion under the Government of Ghana (GoG) account, over GH¢8 billion under the Road Fund, and additional arrears on Cocoa Roads projects.

He noted that while the government cannot clear the entire debt within its first year, the progressive payments mark a major step toward restoring contractor confidence and stimulating the construction industry.

“If a government that is one year old is able to pay GH¢5 billion of the arrears inherited, without borrowing, that government must be commended,” he stated, commending President John Mahama and the Finance Minister for “prudence and effective leadership.”

Mr. Agbodza added that payments under the Road Maintenance Trust Fund (formerly Road Fund) had commenced, and additional arrears would be cleared as fiscal space improves.

He also reaffirmed that the government’s Big Push infrastructure projects were on schedule, with procurement and design processes nearly completed and new works worth over GH¢70 billion already awarded.

Ongoing projects, including the Ofankor, Kasoa, and Adenta–Dodowa roads, are progressing steadily, with no cancellations planned.

Mr. Agbodza is currently in Beijing as part of President Mahama’s delegation attending the Ghana Presidential Investment Forum, which has attracted over 600 Chinese investors exploring opportunities in roads, mining, agriculture, and renewable energy.

Government says the move signals its firm commitment to reviving the road construction sector, clearing arrears transparently, and accelerating national infrastructure delivery without increasing debt.

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