The government has secured GHC 2.2 billion to defray part of arrears owed to road contractors which is the first time such bulk payment is being made to contractors in the road sector in the country.
A statement issued to the Ghana News Agency (GNA) and signed by Mr Kwasi Amoako-Attah, Minister of Roads and Highways stated that government since January 2017 to August 2019 had paid a total of GHC1.7 billion of the outstanding arrears.
He said GHC 1.0 billion of the amount received would be paid to contractors, funded through the consolidated fund and the remaining GHC 1.2 billion would be from the Road Fund.
The payment modalities would be as follows; all payment certificates value of GHC 500,000.00 and below will be paid in full and this would mostly cover contractors categorised as routine maintenance contractors.
He stated that 40 per-cent of certificates valued at that amount will be paid and that disbursement had already commenced and would be completed within a month.
“Payments would be made directly into respective bank accounts of contactors, “he said.
He said this showed the government’s determination to ensure a stable atmosphere in the road construction industry to enable the contractors discharge their responsibilities effectively.
He also expressed appreciation on behalf of the government to the Ghana Chamber of Construction Industry (GhCCI), Association of Roads Contractors (ASROC), Progressive Road Contractors Association (PROCA) and all stakeholders in the sector for their cooperation over the period.
He appealed to all of their contractors to return to their projects and ensure its successful completion.