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A delegation from the Ghana Construction Chamber has paid a courtesy call on the Minister for Roads and Highways, Mr Governs Kwame Agbodza, to deliberate on critical issues affecting the construction sector, particularly road infrastructure development and funding mechanisms.
The discussions centered on re-introduction of road toll, 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 meeting, the Minister reaffirmed the government’s decision to reintroduce road tolls as a key strategy for sustainable road infrastructure funding. He emphasized that the road tolls would be implemented through a modernized digital toll collection system, ensuring efficiency, transparency, and ease of payment.
He said the digital transformation of the road toll would help enhance revenue collection for road maintenance and expansion, reduce traffic congestion at toll points, minimize revenue leakages and improve accountability as well as provide a seamless payment experience for road users.
He assured the delegation that revenue generated from tolls would be deposited into a dedicated account, strictly allocated for road maintenance. Additionally, he emphasized plans to uncap the Road Fund, a move aimed at generating sufficient resources to settle the Ministry’s outstanding debts, which have placed a significant financial burden on the sector.
The Minister also highlighted ongoing discussions with the Ministry of Local Government to establish a plant pool under the District Roads Improvement Program (DRIP). This initiative is expected to provide local contractors with access to essential equipment and resources, thereby enhancing their capacity to contribute to road development.
Reaffirming his commitment to collaboration, the Minister assured stakeholders that his office remained open for discussions and suggestions that will help improve the country’s road network.
On the Ministry’s Indebtedness to Contractors, 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 to the tax and SSNIT payment obligation.
The Minister acknowledged these challenges and assured that measures were being explored to address outstanding debts, ensuring smooth project execution and contractor sustainability.
The delegation and the Minister also 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 Minister said.
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 and also promised to present a detailed strategic and effective implementation of the DRIP.
The delegation proposed several policy recommendations to improve Ghana’s road network, including ensuring timely disbursement of funds to contractors to prevent project delays, strengthening monitoring and evaluation mechanisms for district-level road improvement programmes, and prioritising climate-resilient road infrastructure projects to withstand extreme weather conditions.
Source: GNA
