Contractors Welcome GH¢3.4bn Infrastructure Funding, Warn Against Costly Payment Delays

Ghana’s construction industry has welcomed the government’s decision to front-load financing for key infrastructure projects and begin settling outstanding obligations to contractors, describing the move as a positive signal for the sector’s recovery. However, industry leaders caution that delays in clearing the remaining arrears could significantly increase the state’s financial burden through mounting interest costs.

Presenting the 2026 Mid-Year Budget Review, Finance Minister Dr. Cassiel Ato Forson announced that GH¢1.7 billion had been transferred to the Road Maintenance Trust Fund to accelerate road maintenance nationwide. The minister also disclosed that another GH¢1.7 billion had been deposited into a dedicated account at the Bank of Ghana to finance the planned Accra-Kumasi Expressway, one of the country’s flagship transport infrastructure projects.

The announcements have been welcomed by the Ghana Chamber of Construction Industry, which says the government’s decision to make funds available ahead of project execution provides greater confidence that contractors will not face the liquidity constraints that have historically slowed project delivery.

Speaking to 3Business, Chief Executive Officer of the Chamber, Emmanuel Cherry, described the initial disbursement as encouraging, noting that it represents meaningful progress toward settling more than GH¢3 billion in outstanding obligations to contractors.

According to him, the industry remains optimistic that the government will clear a substantial portion of the debt before the end of the year, but warned that prolonged payment delays continue to inflate the state’s liabilities as interest accumulates on overdue certificates.

“The further payments are delayed, the larger the outstanding portfolio becomes because interest on delayed payments continues to accrue,” he said, urging authorities to expedite the settlement process.

Mr Cherry also pushed back against claims by the Minority in Parliament that contractors have abandoned project sites because of unpaid certificates. He argued that funding provisions contained in the budget demonstrate the government’s commitment to honouring its contractual obligations and sustaining infrastructure delivery.

He further dismissed allegations that contractors participating in the government’s Big Push infrastructure programme are being underfunded, insisting that adequate budgetary allocations have been made to support implementation.

According to him, once payment certificates are processed, contractors have access to earmarked resources within the programme’s allocation, providing assurance that financing is available for approved projects.

The Chamber’s comments highlight growing confidence within the construction sector that fiscal conditions are improving following years of payment arrears that constrained contractors’ cash flows and weakened project execution.

For investors and industry participants, the government’s ability to sustain timely payments will be closely watched, as efficient execution of capital expenditure remains critical to supporting economic growth, restoring confidence in the construction sector, and ensuring value for public infrastructure investment.