Government Allocates GH¢23.1bn to Settle Road Contractors’ Arrears

Elena Marchetti
Elena Marchetti
Follows the money across southern Europe — frameworks, deadlines and market rankings. Based in Milan.
4 Min Read

As of July 2026, the Ghanaian government has disbursed GH¢23.1 billion to clear outstanding payments owed to road contractors, a significant move aimed at enhancing infrastructure development under the Big Push programme. This announcement was made by Mr Kwami Governs Agbodza, the Minister of Roads and Highways, during President John Dramani Mahama’s inspection of a key road project in the Upper East Region.

Funding for Infrastructure Development

The disbursement of GH¢23.1 billion is part of the government’s commitment to improving road infrastructure across Ghana. This funding is not only aimed at settling arrears owed to contractors but also at supporting ongoing projects under the Big Push infrastructure programme. The Minister noted that a substantial portion of the disbursed amount is dedicated to clearing historical debts, which has been a significant issue for contractors in the sector. By addressing these arrears, the government aims to foster a more competitive environment for contractors, encouraging them to resume work on various projects that have been stalled due to financial constraints.

Impact on Local Contractors and Communities

The clearing of arrears is expected to have a positive impact on local contractors and the communities they serve. With payments being made, contractors can return to work on critical road projects, which are essential for connecting various regions and facilitating trade. The Navrongo-Chuchuliga-Tumu Road project, for instance, links the Upper East and Upper West Regional Capitals, enhancing accessibility and economic opportunities for residents. The Minister expressed confidence that contractors would not only complete their projects on time but may also finish ahead of schedule, which could lead to improved road conditions and increased economic activity in the affected areas.

Government’s Commitment to Infrastructure

The government’s proactive approach to infrastructure development, as highlighted by the Roads Minister, reflects a broader strategy to address the country’s pressing road issues. By prioritising the settlement of arrears, the government is demonstrating its commitment to ensuring that contractors are adequately compensated for their work. This initiative is part of a larger vision to enhance the quality of roads across the nation, which is critical for supporting economic growth and improving the lives of citizens. The Minister’s remarks during the President’s tour indicate that the government is not only focused on completing inherited projects but is also committed to initiating new ones that will benefit communities throughout Ghana.

LabelValue
Total DisbursedGH¢23.1 billion
Date of AnnouncementJuly 2026
Minister of Roads and HighwaysKwami Governs Agbodza
Project InspectedNavrongo-Chuchuliga-Tumu Road
Key financial figures related to the government’s disbursement for road contractors.

The bulk of that amount is arrears. So, you will be on record as the President who paid the largest portion of arrears under any government in our history.

WHY IT MATTERS

This significant financial commitment by the government not only addresses historical debts but also aims to stimulate economic activity through improved infrastructure.


Reported from myjoyonline.com, 2026-08-17. The Tender Wire is published by Otnox.

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Follows the money across southern Europe — frameworks, deadlines and market rankings. Based in Milan.
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