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Gov’t Clears Nearly GH¢10bn Road Contractor Arrears by December 2025 — Agbodza

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Kwame Agbodza speaking on road contractor payments on Joy FM

A massive injection of funds into Ghana’s road sector has cleared years of accumulated debt, with government paying almost GH¢10 billion in arrears to road contractors within a few months, Roads and Highways Minister Kwame Agbodza has disclosed.

The minister revealed the figures while speaking on Joy FM’s Super Morning Show, describing the payments as historically unprecedented in both scale and speed.

According to Mr Agbodza, official records show that by December 31, 2025, government had settled arrears approaching GH¢10 billion — debts tied to road contracts awarded over an eight-year period before President John Dramani Mahama assumed office.

He argued that no previous administration had cleared such a volume of contractor arrears within a single budget cycle, let alone within two to three months.

“At no point in our history can we point to a government paying close to GH¢10 billion in arrears within such a short space of time,” the minister said, stressing that the payments relate entirely to inherited obligations.

Mr Agbodza explained that the clearance of arrears is already having a stabilising effect on the road construction sector, allowing contractors to remobilise equipment, retain workers, and resume stalled projects without financial strain.

He added that the move was deliberate, noting that unpaid contractor debts often slow infrastructure delivery and inflate project costs over time.

On ongoing projects, the minister announced that work on the Eastern Corridor Road has been prioritised, with government targeting full completion of the entire stretch by December 2027. He described the road as one of the longest continuous road networks in the country and a critical artery for national connectivity and economic activity.

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