A new report by the National Development Planning Commission (NDPC) has revealed widespread delays, cost overruns, and substandard execution in government development projects, warning that the trend continues to undermine value for money.
According to the 2024 Annual Progress Report, numerous capital projects across Ministries, Departments, and Agencies (MDAs) have exceeded their planned completion timelines by several years, with ballooning costs driven largely by macroeconomic instability.
The report identified low GDP growth, high inflation, and exchange rate volatility as major factors behind the delays and cost escalations.
NDPC data show that the total contract costs for 17,993 capital projects surged from an initial GHS 434.8 billion to GHS 505.1 billion, representing an overrun of GHS 70.3 billion.
The Ministry of Roads and Highways accounted for more than half of all ongoing projects, with 9,616 road projects at various stages of completion.
“Most investment initiatives recorded substantial time overruns, exceeding their planned duration by many years,” the report stated.
“Macroeconomic risks, including rising inflation and volatile exchange rates, made projects more costly to complete.”
The Ministry of Works and Housing, Ministry of Defence, and Ministry of Energy were among the top agencies with the sharpest cost escalations. For instance, the Ministry of Defence recorded an increase from GHS 8 billion to GHS 55.6 billion in project costs in 2024 alone — more than a sixfold jump.
Despite ongoing government initiatives to improve coordination and monitoring, the NDPC found that execution gaps persist. On average, Metropolitan, Municipal and District Assemblies (MMDAs) implemented 89.6% of their annual action plans, but completed only 73.4% of planned activities.
The Commission warned that persistent delays and overruns not only waste scarce public resources but also weaken Ghana’s social and economic development prospects. It urged stricter enforcement of project timelines, transparent procurement, and improved financial planning to ensure projects deliver their intended outcomes.
Source:Lovinghananews.com
