By: Belinda Nketia
Ghana’s Finance Minister, Cassiel Ato Forson, has revealed that the country’s efforts to complete 55 stalled infrastructure projects could be delayed for up to 12 years due to the limitations set by the International Monetary Fund (IMF)-supported debt restructuring programme.
In his presentation of the 2025 Budget Statement, titled “Resetting the Economy for the Ghana We Want,” Hon. Forson painted a bleak picture for the government’s ability to swiftly address numerous delayed projects, including vital initiatives like the Effia Nkwanta Regional Hospital, the Kejetia Market Phase 2, and the Tema-Aflao road project.
A staggering US$3 billion in undisbursed loans and approximately US$300 million in outstanding interim payment certificates (IPCs) are currently tied up in these stalled ventures, some of which have been halted due to previous debt restructuring efforts. The finance minister also stated that the cumulative effect of delayed payments and demobilization of workers from construction sites could lead to an alarming US$1.1 billion in cost overruns.
“These 55 projects, which are critical to the country’s infrastructure development, have come to a standstill,” he said. “We are now faced with the reality that it will take at least 12 years to complete them, assuming the annual disbursement ceiling of US$250 million continues under the IMF arrangement.”
The IMF-supported programme, which is meant to stabilize Ghana’s economy, has imposed strict limits on the disbursement of bilateral loans. This cap, as explained by the Finance Minister, means that the country will not be able to access more than US$250 million annually from these loans, which severely restricts the pace at which projects can be resumed and completed.
Hon. Forson however, reassured Parliament that the government is actively engaged in negotiations to resolve the challenges posed by the disbursement ceilings. “We will be engaging in the coming days to find ways to expedite the completion of these projects, including discussing with our bilateral creditors to explore options that could accelerate disbursements and minimize further delays,” he stated.
The long wait for the completion of these critical projects is expected to have ripple effects on various sectors of the economy. Some of the most notable stalled projects include:
- Effia Nkwanta Regional Hospital: A crucial healthcare infrastructure project intended to improve medical services in the Western Region.
- Kejetia Market Phase 2: The expansion of the Kejetia Market, which is one of the largest and busiest markets in West Africa.
- Bolgatanga-Bawku-Pulimakom Road: A major road project aimed at improving transportation in the northern regions of Ghana.
- Tema-Aflao Road Project: A significant road project to enhance connectivity between Ghana and neighboring Togo.
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