Gov't releases GHS 2.2b to settle road contractors

Per this development, the government has instructed all road contractors to return to their sites of work and complete abandoned projects.

In a statement released by the Ministry and signed by the sector Minister, Kwasi Amoako Attah, GH¢1 billion of the money will be used to pay for the Government of Ghana contracts, while the GH¢1.2 billion will be paid into the Road Fund to settle other debts.

READ ALSO: ‘Truck pusher’ John Dumelo does clean-up exercise ahead of 2020 elections

“The government has secured an amount of GHs 2.2 billion to defray part of arrears owed to road contractors. The Ministry of Roads and Highways wishes to state that, out of the total amount of GHs 2.2 billion, GHs 1billion will be paid to contractors funded through the consolidated fund. The remaining GHs 1.2 billion will be paid to contractors funded from the Ghana Road Fund.”

“Disbursement has already started and is expected to be completed within a month. It is worthy to note that, this is an unprecedented bulk payment to contractors in the entire history of the road sector. We take this opportunity to appeal to all our contractors to return to their projects and ensure successful completion”, portions of the statement read.

The statement said, in all Government of Ghana projects, all the payment certificates of value GHs 5 million and below will be paid in full while at least 40 percent of all payment certificates of value above GHs 5 million will be paid.

For Ghana Road Fund projects the statement said;

“All payment certificates of value Ghs 500,000 and below will be paid in full. This is mostly in respect of contractors commonly categorized as routine maintenance contractors whereas at least 40 payments certificated worth above GHc 500,000 will be paid.”