Politics of Thursday, 27 February 2025

Source: www.ghanaweb.com

2025 SONA: The road sector is in crisis; 85% of awarded contracts have stalled - Mahama

President John Dramani Mahama President John Dramani Mahama

President John Dramani Mahama has stated that the road sector is in crisis, mainly due to years of mismanagement.

Delivering his first State of the Nation Address in his second term, he revealed that as of December 2024, unpaid bills owed to contractors exceeded GH¢20 billion for work carried out between 2018 and 2024.

“As many as 85% of awarded contracts have been stalled, and contractors have stopped work due to non-payment. For instance, the Ghana Road Fund obtained a loan of GH¢600 million in March 2018 to refinance outstanding debts and borrowed an additional GH¢1.2 billion from a syndicate of banks in November 2019.

“Alarmingly, upon assuming office, the Ghana Road Fund still had outstanding payments—including some as low as GH¢2,000—dating back to 2018. Current commitments for road projects now total an astonishing GH¢105 billion,” he stated.

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Despite these considerable challenges, President Mahama assured that his government remains steadfast in its commitment to prioritising vital infrastructural projects that address the pressing backlog of poor roads.

“Our strategy will be anchored in executing flagship initiatives under the ‘Big Push’ Programme. The Big Push will see major rehabilitation of many key roads in the feeder roads, urban roads, and highway sectors,” he said.

He further outlined key initiatives to revitalise the road sector, stating, “We will reintroduce tolls using modern technology.”

Background:

President Mahama's address, which is in line with the Article 67 of the 1992 Constitution, and which is expected to outline his ambitious “Resetting Ghana” agenda, aims at tackling economic challenges, creating jobs, and restoring stability.

In his address, the president is expected to touch on key areas of his government's policy objectives.

He is also expected to provide updates on the state of Ghana’s economy, including the ongoing IMF bailout program, security, and the cost of living, among other issues.

Additionally, he will update Ghanaians on deliverables for the year ahead, as well as the achievements of his government so far and the challenges that lie ahead.

JKB/AE

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