https://www.myjoyonline.com/proposal-to-restructure-20bn-external-debts-affects-road-projects/-------https://www.myjoyonline.com/proposal-to-restructure-20bn-external-debts-affects-road-projects/
31.2 kilometer Assin Praso-Assin Fosu road

Some six key road projects are at risk of being abandoned unless the government is able to secure funding from other sources to complete them.

The construction works on the major roads have been affected because funds allocated for them have been suspended due to the government's proposed external debt exchange programme estimated at $20 billion.

The projects are the Obestebi Lamptey Interchange, Flower Pot Interchange, Tema Motorway, Nungua Barrier, Kumasi Suame, and the Takoradi PTC interchange.

JoyNews is learning that the government has proposed to waive 35 per cent off the principals or coupons in a debt exchange programme held by bilateral creditors.

Read more: https://myjoyonline.com/haircut-of-35-on-coupons-interest-payment-likely-to-be-deferred-to-2026-haruna-iddrisu/

Matured interest payments between 11 and 14 billion dollars will also be paid in 2026.

This has pushed some of the creditors to suspend the release of money for the road projects.

The Head of Public Relations at the Ministry of Roads and Highways, Nasir Ahmed Yartey, confirmed the financial challenge.

He further indicated that the stalled road interchanges across the country are as a result of the country’s International Monetary Fund deal and the Domestic Debt Exchange Programme.

‘Before the IMF and the DDEP we got into as a country, you will agree with me that all these interchanges were moving at similar paces and they were moving very fast. The problem is the IMF and the Debt Exchange Programme,” he said.

Although works are currently ongoing at the Flower Pot area, Mr Ahmed Yartey said: “The major hurdle now is the construction of a bridge over the Motorway. Together with the Nungua and the PTC in Takoradi, they’ve all been affected by the exchange programme that we’ve entered into.”

According to him, government is in talks with financiers to see how best the projects can progress, and added that the Ministry hopes the contractors will be back on site by the end of 2023.

“The roads are being constructed with a credit facility and if you are unable to pay the constructors road certificate for the banks to honour them, then there is no point for them doing the work until they get a clear, green light that their certificate will be honoured.”

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.