The Minister for Roads and Highways, Kwame Governs Agbodza, has urged contractors working on ongoing road projects to cooperate with the government in renegotiating contractual terms to ensure the completion of projects by the end of 2027.
According to the Minister, the government is pursuing a practical and collaborative approach to resolving outstanding “cost to complete” discussions amid the country’s financial constraints.
Speaking to road contractors in the Eastern Region during his nationwide road inspection tour on Monday, May 11, 2026, Mr Agbodza encouraged contractors to show flexibility during negotiations and avoid excessive claims tied to interest charges and price fluctuations.
“I would encourage the contractors working here also to know that when the discussion about cost to complete comes, it cannot be the usual discussion,” he said.
He stressed that the government’s objective is to work jointly with contractors to complete projects while ensuring they do not incur losses.
“All we want to do together is work together to complete this project. So be prepared to also bend backwards to take some heat, but have enough money to be able to complete the project so that at least you will not say that you did this project and you have made a loss,” he stated.
Mr Agbodza cautioned against treating the renegotiation process as “business as usual,” where contractors routinely add multiple fluctuation and interest claims to projects.
“We do not want that one to happen. But be prepared that you will work with us to make sure that we will not make it business as usual, where the normal thing, add this fluctuation, add this, add this,” he said.
The Minister disclosed that the Chief Executive of the Ghana Highway Authority has been directed to immediately begin consultations with contractors and project consultants to conclude negotiations before the end of the month.
“We are asking the chief executive immediately to engage your consultants and yourselves from now so that before the end of the month, we can come to a conclusion,” he noted.
According to him, the government plans to extend project timelines by at least one year to allow contractors sufficient time to complete the works.
He explained that many of the current contracts are technically inactive or no longer fit for purpose, but the government does not intend to terminate them and begin fresh procurement processes due to the higher financial burden such a move would create.
“Currently, all of your projects are in abeyance or actually dead. You don’t have a contract that is fit for purpose. But we cannot say that we are coming to terminate the project and now start a new procurement process. We have to work with you,” he said.
Mr Agbodza acknowledged that some contractors might prefer contract termination because it could allow for fresh mobilisation payments and revised project terms, but insisted renegotiation remains the more financially responsible option for the government.
“Some of you will be happy that we terminate, because you’ll come back with a new mobilisation and everything to start the work. But we know that that is a bigger hit to government coffers,” he explained.
He assured contractors that the government remains committed to engaging all stakeholders regardless of when the projects were awarded.
“Everybody can tell how much you need to finish the project. So we’ll work with you. And I want to encourage you to feel free to join the discussion and bring on board your views as to how we’ll finish this,” he added.
The Minister expressed optimism that, with successful negotiations and cooperation from contractors, the projects could be completed by the end of 2027.
