It could take a minimum of 12 years to complete projects that have stalled due to the debt restructuring programme undertaken by the previous Akufo-Addo administration, Finance Minister Cassiel Ato Forson has said.
Presenting the 2025 Budget and Economic policy, Dr. Ato Forson disclosed that about 55 projects have been halted following the debt restructuring.
The affected projects, he stated, include the Bolgatanga – Bawku – Pulmokum Road, Effia Nkwanta Hospital, the Kejetia Market Phase II and the Tema – Aflao Road.
“This leaves a massive amount of US$3 billion in undisbursed loans and about US$300 million in outstanding interim payments certificate (IPCs),” he stated.
According to him, the International Monetary Fund economic support program imposed annual loan disbursement sealing of US$250 million for bilateral loans that have been restructured.
This has put a constraint on the availability of funding for construction works, resulting in the stall of projects and delay in the payment for works done.
The situation, he said, will lead to not only cost overruns to the tune of over a trillion US dollars but also further delays the completion of the projects, stating that it could take not less than 12 years to complete them if nothing changes.
“Delayed payment and demobilization from site could result in cost overruns of over 1.1 trillion. The IMF supported program imposed an annual disbursement sealing of US$250 million for all bilateral loans that are being restructured. This constraint means that it will take a minimum of 12 years to complete all of this stalled program.”
He, however, indicated the government’s resolve to take steps to reverse the situation.
