The Minister-designate for Roads and Highways, Governs Kwame Agbodza, has raised serious concerns about rising debt in the road sector after he appeared before the Appointments Committee on Monday, January 20.
Mr. Agbodza revealed that the previous government had left at least GH¢113 billion in outstanding commitments.
He specifically highlighted GH¢20 billion in unpaid certificates, calling it a critical challenge for the incoming administration and a major strain on the country’s finances.
The most alarming figure, however, is the accumulated interest on this debt, which has now reached a staggering GH¢665 million.
Mr Agbodza explained that the high interest is largely due to the nature of the contracts tied to the debt, which have led to substantial interest accrual over time.
He stressed the urgent need to address these financial burdens, warning that the growing unpaid certificates and skyrocketing interest rates must be tackled promptly to prevent further fiscal difficulties for the country.
Mr Agbodza stated, “The NPP government is leaving behind a minimum of GH¢113 billion in commitments. Even more concerning is that unpaid certificates amount to about GH¢20 billion, and the interest on this debt has now hit GH¢665 million due to the nature of the contracts.”