The Minister of Roads and Highways, Governs Kwame Agbodza, has said new procurement directives to help address inefficiencies and inflated costs have been introduced in the road construction sector, starting with a price ceiling on cement supplied for government-funded projects.
Speaking at the government’s weekly press briefings dubbed “Government Accountability Series in Accra on Wednesday, July 30, 2025, Mr Agbodza said suppliers providing cement to government contractors must not charge more than GH¢95 per 50kg bag. The move is aimed at reducing inflated input costs that have affected project delivery.
“Some contractors are being forced to buy cement at over GH¢120 a bag, even when delivering public works. That is unacceptable. We are drawing the line,” he said.
The cement pricing policy forms part of broader procurement reforms under the current administration. Mr Agbodza said the aim is to ensure value for money, stop unregulated contract awards, and prevent politically motivated project cost inflation.
“People walk into my office daily with unsolicited packages, throwing documents for me to sign. That era is over. Only programmed and budgeted projects will go forward,” he said.
Mr Agbodza attributed many of the cost overruns and poor outcomes in past projects to the design-and-build model, which he said allowed contracts to be awarded without prior engineering designs or cost estimates.
Under the revised approach, all major road projects, including those under the government’s Big Push programme, will be designed, costed, and approved internally by state technical agencies before any procurement begins.
“For the first time, road project costing will come from government agencies, not private contractors. This means no more bloated budgets or political padding,” Mr Agbodza said.
He added that delays in the processing of payment certificates, as well as weak cost controls, had caused many contractors to abandon sites, especially in regions where material costs continued to rise unchecked.
The Ministry of Roads and Highways is also expected to introduce new measures to standardise procurement timelines, track contractor pricing electronically, and improve supervision of ongoing works.
The cement pricing directive takes immediate effect for all projects funded by the central government through the Ministry.
Mr Agbodza said these reforms are aimed at restoring public confidence in the sector and ensuring that the use of public funds results in visible and durable infrastructure, especially at a time when national resources are limited.
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