ACCRA — The Ministry of Roads and Highways Hon. Kwame Governs Agbodza will work with the Attorney General next week to pursue legal action to recover nearly $30 million paid to an Indian contractor for the Tamale–Bolga road project, after less than 1% of work was executed, Minister Kwame Governs Agbodza has said.
The contract, worth $158 million and backed by the Indian Exim Bank, was awarded in 2022 under a supplier’s credit agreement and was scheduled for completion in December 2025. Ghana paid about 20% mobilization, roughly $30 million, but the contractor, JMC — now Kalpatura Projects — abandoned the site after delivering negligible progress.
What went wrong
Agbodza told Joy FM that the contract terms allowed the firm to terminate and keep funds already paid if a second payment request wasn’t honored on time. Even at the public ceremony to mark commencement, some equipment on site did not belong to the contractor, raising early red flags about readiness. The contractor issued a notice of termination in March 2024.
The Minister said the previous administration paid the foreign firm while owing Ghanaian contractors GH¢21 billion. “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 stated.
Legal hurdles and next steps
Because jurisdiction for the contract lies in India, earlier recovery attempts were met with an injunction. The Ministry has now notified the Attorney General for legal advice on the way forward. Agbodza vowed that government will use “every legal means” to either compel work equivalent to the funds paid or retrieve the money.
‘Plan B’ for the Central Corridor
Beyond the recovery effort, President Nana Akufo-Addo has directed the Ministry to begin developing an alternative plan for the Tamale to Bolga stretch, described as “the real central corridor” veering toward the eastern part of the country. The Highways Authority is working on the new strategy, with an official announcement expected soon.
Background
The Tamale–Bolga road was originally constructed in 1991 with Japanese assistance and has been slated for dualisation. A sod-cutting was held in 2022, but as of early 2026 only 1% of work had been completed despite the $30 million mobilization. The road is a critical link for northern Ghana, and delays have sparked public frustration over safety and economic costs.
What’s next
The Ministry says it will engage the contractor to either deliver work worth $30 million or face legal action. Meanwhile, the proposed Plan B aims to ensure the corridor is delivered despite the setback.
