The Minister of Roads and Highways, Mr Kwame Agbodza, has initiated discussions with several local banks to explore strategic and innovative financing models for critical road projects across the country.

Engagements with the Agricultural Development Bank (ADB), National Investment Bank (NIB), and Ecobank Ghana Limited focused on resolving the government's longstanding indebtedness to road contractors, many of whom have outstanding loans with these financial institutions. 

Other key areas of discussion included the reintroduction of road tolls, negotiations over interest on delayed payments, financing major road projects under the government’s “Big Push” initiative, and improving communication between the Ministry and the banks.

During the discussions, Mr Agbodza assured the banks of the government’s commitment to settling payments owed to contractors. 

“With regard to the indebtedness, we will pay.

The reality is that the health of state-owned banks is adversely affected when the government fails to pay contractors on time, especially those who have taken loans from these banks,” he stated. 

He also urged the banks to revise their lending policies and interest rates, encouraging them to adopt innovative approaches to create a more supportive financial environment for contractors.

Additionally, Mr Agbodza encouraged ADB to explore ways to support stalled Cocoa Roads Projects, which are crucial for improving access to cocoa-growing regions and boosting Ghana’s agricultural exports. 

“Let’s not forget that you are the Agricultural Development Bank, so perhaps you should prioritise cocoa roads over urban projects,” he noted. 

The banks expressed their willingness to support the road sector through syndicated funding arrangements and investing in technologies for efficient toll collection. 

These engagements underscore the government’s commitment to fostering Public-Private Partnerships (PPPs) to accelerate road infrastructure development and improve the overall road network nationwide.