Eighty percent of road projects being pre-financed by Ghanaian contractors across the country have stalled, the National Chairman of the Association of Ghana Road Contractors, John Afful, has estimated.
He attributed these challenges to the depreciation of the cedi and the increasing cost of petroleum products.
Speaking on the Citi Breakfast Show, Mr. Afful said it has become practically impossible for most Ghanaian contractors to continue work when their foreign counterparts whose projects are valued in dollar denominations are working unabated.
“There are huge projects that are handed by the ministry and that will have to be paid by the Ministry of Finance… Most of them have been stalled. They are huge projects running from over GH¢100 million to what have you.”
Meanwhile, the Head of the Public Relations Unit of the Ministry of Roads and Highways, Nasir Ahmad Yartey, has assured contractors of the government’s commitment to honouring outstanding debts.
“The ministry is making efforts to make sure that contractors are paid for work done,” Mr. Yartey said.
“As we speak, we all know that inflation is around 30 to 40 percent. That means prices of contracts are going to go up automatically to about 30 to 40 percent.”
Mr. Yartey, however, expects the government’s indebtedness to contractors to continue over the years.
Payment to contractors is a continuous process. No one in government will say I have paid all contractors… you inherit debts, you pay some,” he said.