Audio By Carbonatix
The 2024 National Annual Progress Report has revealed that the previous government was forced to suspend about 15 major road projects due to financial constraints.
The disclosure emerged during the ongoing review of the report by Parliament's Economy and Development Committee, which is assessing the country's progress across key sectors.
During the deliberations, Tano South MP Charles Asiedu highlighted several of the affected projects and sought clarification on their current status and the measures being taken to facilitate their resumption and completion.
The projects include the construction of 14 pedestrian bridges, the Kumasi roads and drainage extension works, Phase One of the Tema–Aflao Road Project, the Paa Grant Interchange in Sekondi and Takoradi Township Phase One, and Eastern Corridor Road Lot One.
Others are the new bridge across the Volta River, the Accra Intelligent Traffic Management Project, La Beach Road and traffic management works, and the rehabilitation of the Dome–Ketasi Road.
Mr Asiedu urged the committee to provide updates on the progress of the projects and outline the steps being taken to ensure their completion.
In a related matter, Ledzokuku MP Benjamin Ayiku Narteh questioned the former government's election-year spending.
Referring to Section 2.1.2.3, Table 2.10 of the report, he noted that domestically financed capital expenditure fell short of the revised budget target by GH¢3.3 billion. He sought clarification on the factors that contributed to the shortfall and the measures being implemented to address it.
Responding to the concerns, Deputy Minister for Finance Thomas Ampem Nyarko attributed the suspension of the projects primarily to Ghana's debt restructuring programme.
"Following the suspension of our debt servicing and subsequent debt restructuring, all those projects had to halt because we could not draw down. So that is what happened," he said.
Mr Nyarko explained that negotiations with creditors had been ongoing, adding that Parliament had approved discussions with 25 OCC members, leading to bilateral agreements with 12 of them.
According to him, financing for some of the projects has already resumed.
"Drawdown for some of these projects has now resumed. But in 2024, because of the debt restructuring, we could not access any of that financing. That is why the report says that they were stalled in 2024," he stated.
He added that, following the conclusion of debt restructuring agreements with some bilateral creditors, the government has begun drawing down funds for some of the affected projects.
Mr Nyarko assured the committee that a detailed update would be provided on which projects have resumed and those that are still pending.
He also stressed that the country's main challenge in 2024 was not revenue generation but expenditure management.
"As was presented, revenue exceeded the target for 2024, but the challenge was mainly expenditure. We did not have commitment control, and so there were a lot of projects that were awarded, some even on the blind side of the Ministry of Finance, and the Ministry was then surprised with requests for payments," he said.
He explained that the large number of projects awarded without dedicated funding resulted in many stalled developments across the country.
"And so the many projects that were awarded meant that the resources that were there could not fund them, and that is why we saw a lot of projects hanging everywhere within the four corners of this country," he added.
To prevent a recurrence, Mr Nyarko said Finance Minister Dr Ato Forson had amended the Public Procurement Act to make commitment authorisation mandatory before contracts are awarded.
"Before anybody awards contracts, you come to the Ministry of Finance to get commitment authorisation. The minister then checks if you have a budget for the procurement you want to embark on, and if there is a budget, you are granted authorisation to go and commit the state to it," he explained.
He noted that the new measure had significantly improved fiscal discipline.
"That has significantly reduced the challenge that we had where a lot of projects were being awarded without dedicated funding for them," Mr Nyarko said.
Expressing confidence in the reforms, he added, "And so going forward, we believe that problem is being tackled."
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