Ghana’s Ministry of Finance has mandated strict adherence to original budgets for 24 priority infrastructure projects, prohibiting any cost adjustments despite inflation or currency depreciation.
Finance Minister Dr. Ato Forson confirmed the policy applies unconditionally to projects revived under the G20 Common Framework, shifting financial risk to contractors.
The directive follows the Official Creditor Committee’s (OCC) approval of only 24 “high-priority” initiatives from 55 stalled loan-backed ventures. With undisbursed loans totaling nearly US$3 billion but annual disbursements capped at US$250 million, Ghana’s economic recovery plan demands unprecedented fiscal discipline. Contractors must deliver original scopes at contracted costs, even for agreements signed during 2020–2022 when economic conditions differed significantly.
Ghana’s infrastructure history underscores the policy’s urgency. The Bank of Ghana headquarters project escalated from US$81.8 million to US$261.8 million, while the Bolgatanga–Bawku–Pulimakom Road ballooned from GHS 613 million to GHS 2 billion. The Saglemi Housing Project exhausted 98% of its US$200 million budget while completing only 30% of planned units. Such overruns prompted the government’s stance against “institutionalized cost bloat.”
Approved initiatives span critical transport, health, and education sectors. Key projects include the Volivo Bridge, Tema–Aflao Road Phase 1, Komfo Anokye Teaching Hospital modernization, Bunso University of Environment, and nine technical training centers. Renewable energy initiatives and market constructions in Kumasi and Takoradi also feature among the selected ventures.
Industry observers note potential pressure on contractors facing fixed budgets amid Ghana’s rapid cedi depreciation and global supply-chain volatility. The policy prohibits ministries from negotiating cost adjustments, raising concerns about construction quality, project abandonment, or legal disputes. However, government authorities assert the model will enforce stronger project design and accountability.
Successfully delivering these 24 projects within original budgets could redefine Ghana’s approach to public infrastructure. The policy represents a pivotal test for the Mahama administration’s fiscal reform agenda ahead of the 2028 elections.
