Road Minister Outlines Major Reforms to Road Fund Management 

The Minister for Roads and Highways, Hon. Governs Kwame Agbodza, has delivered an update to Parliament on the current state and future direction of road construction and rehabilitation across the country.

Speaking on the floor of Parliament, Hon. Agbodza emphasized that the new approach to funding road projects will not follow the traditional models, such as GETFund or the existing Road Fund mechanisms. He explained that while GETFund may be involved in awarding contracts, the Road Fund will strictly be used to finance specific activities determined by the road sector agencies — namely, the Department of Feeder Roads, Department of Urban Roads, and the Ghana Highway Authority.

He clarified that the Road Fund is not permitted to award road contracts. "No one will allow the Road Fund to begin initiating projects; it is solely a financial instrument to pay for work done by the responsible road agencies," he stated.

Hon. Agbodza also revealed that the Road Fund has suffered from years of poor financial management, particularly the collateralization of future revenue streams. "For too long, road funds have been mortgaged for 10 to 15 years, leaving the country burdened with debt servicing rather than actual road construction," he said. To address this, he announced that all forms of collateralization of the Road Fund have been outlawed. Going forward, expenditures will be based solely on the revenue accrued in the specific fiscal year, ensuring the fund lives within its means.

The Minister further disclosed that the government is introducing legal reforms to criminalize certain practices that have contributed to inefficiencies and corruption in road fund management. According to him, anyone—including technocrats—who manipulates documentation or facilitates illegal decisions regarding the fund will be held accountable under a new penalty regime.

"From now on, if you act outside the bounds of the law regarding Road Fund operations, you can be surcharged and punished," he warned.

To improve transparency and accountability, Hon. Agbodza announced that the Road Fund will be restructured to operate as an independent entity with its own management team and Board of Trustees. This new structure will report directly to Parliament, ensuring oversight by the representatives of the people.

These reforms, he concluded, are aimed at ensuring efficiency, accountability, and the sustainable financing of Ghana’s road infrastructure.

Report by PKB