Government has appealed to road contractors across the country to return to their respective project sites and resume construction work as it secures 2.2 billion cedis to defray part of arrears owed them.
“Disbursement has already started,” the Roads and Highways said in a statement Thursday, stating it will continue for a month by which time the payment is expected to be completed.
Out of the total amount of 2.2 billion cedis, government said 1 billion cedis will be paid to contractors funded through the consolidated fund while 1.2 billion will be paid to contactors funded from the Ghana Road Fund.
Contractors under government of Ghana projects with total payment certificates valued 5 million cedis and below will be paid in full while those whose certificates are above 5 million will receive 40 per cent of the total amount.
Ghana Road Fund contractors whose total certificates are 500,000 cedis and below will also receive their money in full while those above the 500,000 cedis will also receive at least 40 per cent of their total sum.
Government said it has since January 2017 to August 2019 paid a total of 1.7 billion cedis to road contractors.
“It is worthy to note that, this is an unprecedented bulk payment to contractors in the entire history of the road sector,” the statement signed by the Roads and Highways Minister Kwasi Amoako-Attah said.
Road contractors have for over a year abandoned their project sites over nonpayment of monies owed them, something they contend was affecting their businesses and their inability to repay bank loans.
Government explained in the statement the move stems from the Government’s determination to ensure “a stable atmosphere in the road construction industry” to enable the contractors discharge their responsibilities effectively.
It expressed government’s appreciation to the Ghana Chamber of Construction Industry, Association of Road Contractors, Progressive Road Contractors Association and all others in the sector for their cooperation over the period.
By 3news.com|Ghana