By Adnan Adams Mohammed
The Ghana Institution of Engineering (GhIE) has issued a stern call to the Ministry of Finance to tackle the mounting financial exposure in the country’s road sub-sector, warning that persistent payment delays are threatening the quality and durability of Ghana’s infrastructure.
Delivering the GhIE’s 53rd presidential address on Wednesday, the President of the Institution, Ing. Ludwig Annang Hesse, emphasized that the current financial strain on contractors and consultants has reached a breaking point, necessitating an immediate intervention from the central government.
Restoring Financial Predictability
Ing. Annang Hesse painted a sobering picture of the road sector, where stalled projects and escalating costs have become the norm due to erratic funding flows. He argued that the road sector’s current project portfolio far exceeds the government’s available resources, leading to a cycle of debt and delayed delivery.
“The Ministry of Roads and Highways (MRH) and the Ministry of Finance (MoF) are urged to take decisive steps to resolve the financial exposure by reducing the project portfolio to levels consistent with available resources,” Ing. Annang Hesse stated. “The Finance Ministry must assume responsibility for outstanding contractor payments and negotiate structured settlements.”
The GhIE President warned that these outstanding obligations do more than just slow down work they erode industry confidence and significantly increase the long-term cost of infrastructure as contractors factor in interest on delayed payments.
A Call for Data-Driven Planning
Beyond the immediate financial crisis, the GhIE called for a fundamental shift in how Ghana’s roads are managed. Ing. Annang Hesse made a specific appeal to the National Road Authority to institutionalize an integrated system for the routine collection of road traffic data.
Reliable data, he explained, is the “indispensable” foundation for:
Effective Planning: Ensuring roads are built where they are needed most.
Maintenance Scheduling: Moving from reactive repairs to proactive preservation.
Investment Decisions: Justifying the allocation of scarce national resources.
Quality and Sustainability
The GhIE President reminded the gathering that “sustainable road development requires more than just capital injections.” He stressed that adherence to strict engineering standards, transparent procurement, and value-for-money audits are essential to ensuring that road projects do not deteriorate prematurely.
“Adherence to quality standards and timely disbursement of funds are essential to ensuring the durability of projects,” he noted, cautioning that without coordinated intervention, the nation risks a widening infrastructure deficit and skyrocketing maintenance costs in the future.
The address comes at a time when the government is under pressure to balance aggressive industrialization goals (see related story) with the need to clear legacy debts in the construction sector. For the engineers at the frontlines of these projects, the message to the Finance Minister was clear: clear the debt, downsize the portfolio, and follow the data.
