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Road minister vows to retrieve $30m from foreign contractor for no work done
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The Minister of Roads and Highways, Mr. Governs Kwame Agbodza, has registered his displeasure about what he describes as unfair and lopsided contract terms involving a foreign contractor who was paid $30 million for road works after no work done.
The Minister during at interview at Joy fm, a local radio station in Ghana said the contract in question was signed under a suppliers’ credit agreement supported by the Indian Exim Bank.
He noted that such agreements usually allow foreign companies to bring in their own contractors and resources, but expressed concern about the conditions tied to the deal.
According to him, Ghana paid about 20 percent of the contract sum as mobilization to the contractor.
However, he claimed that even on the day a public ceremony was held to mark the start of work, some of the equipment on site did not belong to the contractor, raising concerns about their readiness.
Mr. Agbodza explained that under the agreement, if the contractor raised a second payment request and the government failed to pay within a specified time, the contractor could legally terminate the contract and leave with the funds already paid.
“This particular contract was written in such a way that we paid $30 million, but no work has been done so far. If they do not work up to that value, we will have to get our money back. No amount of meetings or conferences can change that” he said.
The Minister emphasized that while Ghana often entered into turnkey agreements due to limited financial resources, care must be taken to protect the country’s interests in such deals.
He called on professionals involved in the contract process, including lawyers and engineers, to uphold national interest and ensure that agreements signed are fair and beneficial to the country.
Mr. Agbodza stressed that the government would explore all legal means to either recover the funds or compel the contractor to deliver work equivalent to the amount paid.
By: Jacob Aggrey
Dome Kwabenya Member of Parliament (MP), Elikplim Akurugu, on Tuesday, July 28, 2026 toured ongoing road rehabilitation projects in the constituency to assess the progress of work.
The tour was undertaken with the Municipal Chief Executive (MCE) for Ga East, officials of the Ga East Municipal Assembly and engineers.
The team inspected ongoing works on the Grand Star Hotel-Nama Road at Musuku, the Ashongman Pure Water Road and road projects at Taifa.
Speaking after the inspection, Ms Akurugu said the visit was to monitor the projects after sod was cut a few months ago.
She said she was impressed with the progress made by the contractors, noting that some of the projects were about 80 per cent complete.
According to her, drainage and gutter construction had largely been completed, leaving the asphalt surfacing to be done.
“We are impressed with the work going on,” she said, while commending the contractors for the quality of work.
The MP, however, expressed concern over delays caused by utility service providers, particularly the Electricity Company of Ghana (ECG) and the Ghana Water Limited.
She explained that the relocation of electricity poles, transformers and water pipelines had delayed some aspects of the road works.
Ms Akurugu said the Ga East Municipal Assembly would engage the service providers to help speed up the projects.
She thanked residents for their patience during the construction period and assured them that the temporary inconvenience would soon give way to better roads.
The MP said she would continue to lobby for more road projects to improve movement within the constituency.
The Roads Engineer of the Ga East Municipal Assembly, Daniel Ochere, said the inspection formed part of the assembly’s routine monitoring of the projects.
He said the contractors were working according to schedule and were expected to complete the projects within the 18-month contract period.
By: Jacob Aggrey
Lauritz Knudsen Electrical and Automation, a unit of Schneider Electric, has deepened its investment in Ghana with a showcase of new low voltage switchgear, industrial and agricultural automation solutions.
The company with over 70 years of engineering experience, brought together partners, distributors and customers at Nova Plus in Accra to unveil its expanded portfolio tailored for the Ghanaian market.
The move comes as Ghana prioritises grid modernisation and industrialisation.
Power outages cost the economy an estimated $2.1 billion annually, about two per cent of Gross Domestic Product affecting real estate, agriculture, manufacturing and other sectors.
The Head of Strategy, Business Development, Pricing and LK MEA International Operations, Dallal Slimani said the company’s technology was built to suit Ghana’s environment.
“Our low voltage switchgear is engineered to keep critical operations running through exactly the kind of instability Ghanaian businesses deal with every day, whether that’s a mining camp running off-grid or a hospital that cannot afford a single second of downtime,” she said, adding that “We’re bringing technology refined through years of working alongside our partners here.”
According to her, Lauritz Knudsen solutions were critical across mining, oil and gas, manufacturing, healthcare, data centers, and real estate in hubs like Tema and Accra.
She said her outfit expected demand to grow as the Energy Commission rolled out regulations for EV charging infrastructure.
“With an existing distribution network in Ghana, Lauritz Knudsen plans to expand further into medium voltage switchgear, smart energy management, and solar,” Ms Slimani stated.
She said the company had supported over 50GW of solar capacity globally.
The Business Development Manager of Lauritz Knudsen in charge of West Africa, Valentine Mbachu, noted that unreliable power directly impacts productivity.
“A $2.1 billion annual loss isn’t an abstract figure, it’s downtime on factory floors, spoiled inventory, and stalled investment decisions. We’ve built strong partnerships in Ghana because this market has the industrial ambition to grow fast,” he said.
BY EDEM TSORTORME
