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Thursday, February 27, 2025

Ghana Construction Chamber pays courtesy call on Roads and Highways minister

The discussions centered on the reintroduction of road tolls The discussions centered on the reintroduction of road tolls

On 21st February 2025, a delegation from the Ghana Chamber of Construction Industry paid a courtesy call on the Minister for Roads and Highways, Governs Kwame Agbodza, to deliberate on critical issues affecting the construction sector, particularly road infrastructure development and funding mechanisms.

The discussions centered on the reintroduction of road tolls, assessing the Ministry’s indebtedness to contractors, the utilization of the Road Fund, strengthening public-private partnerships, evaluating the District Road Improvement Programme (DRIP), and recommending policies for improving Ghana’s road network.

During the engagement, the minister reaffirmed the government’s decision to reintroduce road tolls as a key strategy for sustainable road infrastructure funding.

He emphasized that the reintroduction would be implemented through a modernized digital toll collection system, ensuring efficiency, transparency, and ease of payment. He assured that the digital transformation of road tolls aims to:

Enhance revenue collection for road maintenance and expansion.

Reduce traffic congestion at toll points.

Minimize revenue leakages and improve accountability.

Provide a seamless payment experience for road users.

One of the key issues discussed was the level of indebtedness of the Ministry of Roads and Highways to contractors and its implications on ongoing and future road projects.

The Chamber of Construction raised concerns over the financial strain placed on contractors due to delayed payments, which has led to project slowdowns and, in some cases, complete halts, as well as causing non-compliance with tax and SSNIT payment obligations.

The minister acknowledged these challenges and assured that measures were being explored to address outstanding debts, ensuring smooth project execution and contractor sustainability.

The Chamber of Construction Industry emphasized the need for transparency, efficiency, and effectiveness in the utilization of the Road Fund.

The minister clarified that plans were in place to uncap the Road Fund, allowing for increased revenue generation to finance road infrastructure projects and settle outstanding debts.

Additionally, he assured that revenue collected from the proposed reintroduction of road tolls would be deposited into a dedicated account and strictly allocated for road maintenance purposes.

The delegation and the minister discussed the importance of enhancing the role of Public-Private Partnerships (PPPs) in road infrastructure development.

The minister reaffirmed the government’s commitment to fostering partnerships with the private sector to mobilize resources for critical road projects.

Best practices for sustainable collaborations would be considered, including improved contractual agreements, incentives for private investors, and long-term infrastructure maintenance strategies.

The effectiveness of the District Road Improvement Programme (DRIP) was also assessed. The Minister revealed ongoing discussions with the Ministry of Local Government to establish a plant pool under DRIP, aimed at providing local contractors with access to essential equipment and resources.

This initiative is expected to enhance the capacity of local contractors, promote employment, and facilitate the timely execution of road projects at the district level.

The Chamber expressed its support for this initiative while highlighting the need for continuous evaluation to identify challenges and opportunities for enhancement.

The Chamber also promised to present a detailed strategic and effective implementation plan for DRIP.

The delegation proposed several policy recommendations to improve Ghana’s road network, including:

Reintroducing digital road tolls as a key strategy for sustainable road infrastructure funding.

Ensuring timely disbursement of funds to contractors to prevent project delays.

Implementing accountability measures to enhance transparency in Road Fund utilization.

Encouraging greater private sector participation through incentives and streamlined regulatory frameworks.

Strengthening monitoring and evaluation mechanisms for district-level road improvement programs.

Prioritizing climate-resilient road infrastructure projects to withstand extreme weather conditions.

The meeting reinforced the commitment of both the Ghana Chamber of Construction Industry and the Ministry for Roads and Highways to work collaboratively towards improving Ghana’s road infrastructure.

The minister assured stakeholders that his office remains open for further discussions and suggestions to ensure efficient, transparent, and sustainable road development across the country.

The Chamber expressed appreciation for the engagement and pledged to continue supporting initiatives aimed at enhancing Ghana’s road network.

GA/KA

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