The Deputy Minister for Roads and Highways, Alhassan Suhuyini, has disclosed that government has paid over GH¢10 billion in arrears owed to road contractors, describing it as the largest settlement in the country’s history.
“We inherited over GH¢50 billion in arrears, but in just one year, more than GH¢10 billion has been paid,” he said.
Speaking on the KeyPoints with Alfred Ocansey on March 28, he explained that the move has restored confidence in the road construction sector and improved contractors’ capacity to return to site.
According to him, the government inherited not only arrears but also over GH¢100 billion in contractual commitments, many of which lacked clear funding plans.
“Contracts were being awarded without any plan as to how to pay for them,” he revealed.
To address this, the Ministry has adopted a new strategy that prioritises settling outstanding debts instead of paying mobilisation fees upfront.
“If a contractor is owed GH¢1 billion, what is the sense in giving them GH¢500 million mobilisation while the debt still sits on your books?”
He said many contractors had stalled projects not because of incompetence, but due to delayed payments.
“Some of them had done impressive work, but their inability to move to site was simply because they had not been paid.”
The Deputy Minister noted that where necessary, mobilisation is now supported by bank guarantees to ensure accountability.
He further expressed confidence in the government’s financing strategy for road projects, stating that the Finance Ministry is actively managing potential risks, including fluctuations in revenue sources such as mineral royalties.
“I am confident the Finance Minister is already looking at possible shortfalls and how to address them,” he said.
