Dr Cassiel Ato Forson, the Minister of Finance, has disclosed that the bilateral creditor debt restructuring undertaken by the previous administration has forced 55 critical projects to come to a halt.
This has left approximately US$3 billion in undisbursed loans and US$300 million in outstanding interim payment certificates (IPCs) unpaid.
The Minister said this in Parliament during the presentation of the 2025 Budget on Tuesday.
Among the affected projects are the Effia Nkwanta Regional Hospital, Kejetia Market Phase II, Bolgatanga-Bawku Road Project, and the Tema-Aflao Road Project.
Dr Forson said that delayed payments and contractor demobilisation from project sites could result in cost overruns of about US$1.1 billion.
The finance minister explained that the International Monetary Fund (IMF)-supported programme imposes an annual disbursement ceiling of US$250 million for official bilateral loans.
This constraint, he noted, means it would take a minimum of 12 years from the recommencement of disbursements to complete the 55 stalled projects.
Dr Forson emphasized the severity of the situation, stating that the Government was committed to engaging relevant stakeholders to address the challenge.
However, the 12-year timeline underscores the long-term impact of the debt restructuring on Ghana’s infrastructure development and economic growth.
By Jibril Abdul Mumuni, GNA.
