The Minister for Roads and Highways, Kwame Governs Agbodza, has disclosed that the government owes road contractors arrears totalling about GH₵40 billion.

He explained that the debt was inherited from the previous Akufo-Addo administration and continues to pose a major financial challenge to the current government.

Mr Agbodza, however, commended President John Dramani Mahama and Finance Minister Dr Cassiel Ato Forson for making significant progress in clearing part of the arrears.

“Without a doubt, we’re close to about GHC40 billion, which was the work done and unpaid across the road sector. The GH₵5 billion is the biggest single payment made to contractors at a particular time in recent history,” he said.

He further noted that the GH₵5 billion payment was made without recourse to external borrowing, a move he described as a mark of prudent fiscal management.

“We’re doing this without borrowing from international sources. I think President Mahama and the Finance Minister should be commended for this commitment,” he added.

The Roads Minister assured contractors that the government remains committed to gradually clearing the outstanding debts.

“It’s only through prudence and effective leadership that we have been able to do this. We owe lots of money, but we will pay as much as the government can raise and from other sources,” he stated.

His comments come after the Ghana Chamber of Construction Industry (GhCCI) raised concerns about delays in the release of funds for outstanding Interim Payment Certificates (IPCs), warning that the situation threatens jobs and ongoing infrastructure projects nationwide.

Mr Agbodza made these remarks in an interview on Accra-based Citi FM.