The nominee for the Roads and Highways Ministry, Governs Kwame Agbodza, has called for a thorough review of how road projects are awarded in the country, citing concerns about financial sustainability and the need for collaboration between the government and industry stakeholders.
During his appearance before the Parliament Appointments Committee on Monday, January 20, Mr. Agbodza emphasised that while solutions to address funding challenges are being explored, the government remains heavily indebted and must find ways to meet its obligations.
“At the moment, it is his [the Finance Minister’s] responsibility to raise the money. In addition, we need to sit down with industry players, contractors, and the agencies responsible for awarding road contracts. The way we contract and draft these agreements needs to be reviewed.”
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He highlighted the disconnect between the government’s budget allocations and the volume of contracts awarded. Using the 2024 budget as an example, he pointed out that the allocation for capital expenditure in the road sector is less than GH₵ 4 billion. However, the value of road projects awarded last year was several times that amount.
“Why is it possible to award projects worth four times the budgeted allocation?” he questioned.
Mr. Agbodza further proposed a collaborative approach to address the issue, suggesting dialogue with contractors, industry players, and awarding agencies to create a system that balances government affordability with contractor interests.
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He believes fostering a stronger synergy between stakeholders will help create a more sustainable framework for road project financing and delivery, alleviating the current challenges facing the sector.
“We need a solution that doesn’t leave contractors worse off. They are key to building the nation’s capacity and providing employment, but we must ensure the government can pay for the commitments it makes,” he added.