Accra, Jan. 11, GNA - Government is expected to pay GHc160 million being arrears owed to 25 local and foreign road contractors in the country this month.

This is for work done between 2008 and 2009.

Dr Kwabena Duffuor, Minister of Finance and Economic Planning (MoFEP) announced this at a meeting with road contractors in Accra on Monday. He pointed out that these arrears were incurred due to the lack of funds, and that with the payment government would maintain a clean sheet and partner the Ministry of Roads and Highways (MRT) to prioritize and award only contracts for which funds had been made available. "This is to avoid the recurrence of accumulation of arrears, which is a burden on government," he added.

Dr Duffuor said the 2010 budget made provision for the payment of the arrears and would not affect development projects to be executed this year. "On assumption of office in January 2009, government was saddled with huge debts forcing it to concentrate on maintaining prudent fiscal management which has resulted in delays in launching some of its programmes geared towards improving the living standards of the people," he said. Dr Duffuor assured road contractors that MoFEP would liaise with MRT to streamline the administration of the Road Fund to ensure it operated efficiently and effectively to support the financing of road projects in the country.

He said government considered the contractors as key partners in development and would continue to work with them towards the socio-economic development of the country. Dr Duffuor announced that government through the MoFEP, had scheduled meetings with other institutions and establishments being owed to arrange for payment. 11 Jan. 10