A new report by the National Development Planning Commission (NDPC) has revealed that most government development projects continue to suffer from significant delays, cost overruns, and substandard execution, undermining 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.
The report identifies low GDP growth, high inflation, and exchange rate volatility as key factors contributing to the delays and cost escalations.
The NDPC found that total contract costs for 17,993 capital projects surged from an initial GHS 434.8 billion to GHS 505.1 billion, representing a GHS 70.3 billion overrun.
The Ministry of Roads and Highways accounted for over 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, the Ministry of Defence, and the Ministry of Energy were among the top agencies with significant cost increases.
For example, the Ministry of Defence saw its project costs rise from GHS 8 billion to GHS 55.6 billion, a more than sixfold increase in 2024.
The report further noted that, despite government initiatives to enhance coordination and monitoring, execution remains a challenge.
On average, Metropolitan, Municipal, and District Assemblies (MMDAs) implemented approximately 89.6 per cent of their annual action plans, but only 73.4 per cent of planned activities were completed.
The Commission warned that persistent delays and cost overruns not only squander public funds but also hinder social and economic development and consequently called for stricter enforcement of project timelines, transparent procurement processes, and improved financial planning to ensure projects deliver the intended outcomes.
