2011 1st half year report jan jun

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    MSME PROJECTMinistry of Trade & Industry

    2

    Table of Contents

    1. INTRODUCTION .................................................................................................................................. 3

    1.1. BACKGROUND ............................................................................................................................. 3

    1.2. CHANGES IN PROJECT IMPLEMENTATION ............................................................................... 32. REPORT ON PROJECT COMPONENTS ............................................................................................... 3

    2.1. ACCESS TO FINANCE ................................................................................................................... 3

    2.1.1. LINE OF CREDIT ..................................................................................................................................... 3

    2.1.2. PARTIAL CREDIT GUARANTEE ......................................................................................................... 4

    2.1.3. TECHNICAL ASSISTANCE TO BANKS ............................................................................................... 4

    2.1.4. ADDITIONAL FINANCIAL INSTRUMENTS ........................................................................................ 4

    2.2. ACCESS TO MARKETS ................................................................................................................. 5

    2.2.1. BDS FUND .......................................................................................................................................... 5

    2.2.2. INDUSTRIAL SUB-CONTRACTING & PARTNERSHIP EXCHANGES (SPX)......................................... 52.2.3. WEB-BASED PRODUCT GALLERY...................................................................................................... 5

    2.3. ENTREPRENEURSHIP DEVELOPMENT ....................................................................................... 6

    2.3.1. ABRAFO CRAFT VILLAGES & TOURISM VALUE CHAIN ................................................................... 6

    2.3.2. CREATIVE INDUSTRIES ..................................................................................................................... 6

    2.3.3. ELECTRICITY AT ADJABENG .............................................................................................................. 7

    2.3.4. ICT PARK ............................................................................................................................................ 7

    2.3.5. RURAL TECHNOLOGY FACILITIES ..................................................................................................... 7

    2.3.6. STORM DRAIN & WATER AT MPIP .................................................................................................. 8

    2.4. TRADE FACILITATION ................................................................................................................. 9

    2.4.1. EXPORT TRAINING MODULES & PROCESSED FOODS ................................................................... 9

    2.4.2. NATIONAL EXPORT STRATEGY ........................................................................................................ 9

    2.4.3. PTIS/ SME DATABASE ....................................................................................................................... 9

    3. REPORT ON PROJECT INDICATORS .................................................................................................. 11

    4. FINANCIAL SUMMARY ...................................................................................................................... 13

    5. PROCUREMENT REPORT .................................................................................................................. 14

    6. CHALLENGES...................................................................................................................................... 18

    6.1. GOVERNMENT COUNTERPART FUNDING ................................................................................ 18

    6.2. OBSTACLES IN PROJECT IMPLEMENTATION ........................................................................... 186.2.1. GHANA FREE ZONES BOARD .......................................................................................................... 18

    6.2.2. CEDECOM ......................................................................................................................................... 18

    6.3. MSME WEBSITE .......................................................................................................................... 18

    7. CONCLUSION ..................................................................................................................................... 19

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    1. INTRODUCTION1.1. BACKGROUNDThis document is a progress report on the implementation of the various components of the MSMEProject in Ghana from January to June 2011.

    The Micro, Small & Medium Enterprises (MSME) Project is a joint Government of Ghana, IDA and IFC

    MSME Program which aims to increase the competitiveness and employment levels of Ghanaian

    MSMEs.

    The project was formulated to complement Governments Medium-Term Private Sector Strategy

    (PSDS) and the Trade Sector Support Programme (TSSP) which aim to trigger shared growth and

    lower poverty levels through increasing the competitiveness and employment levels of MSMEs in

    Ghana.

    1.2. CHANGES IN PROJECT IMPLEMENTATIONIn March 2011, the World Bank made changes to the Development Credit Agreement. These

    changes include;

    i. Extension of the end of project to June 2013 (for selected components only)ii. Cancellation of US$10 million from the project, andiii. A number of other changes including the amendment to the set of indicators

    2. REPORT ON PROJECT COMPONENTS2.1. ACCESS TO FINANCE2.1.1. LINE OF CREDITThe Line of Credit (LOC) component was designed to offer participating banks access to long-term

    funds to enable them offer MSMEs longer-term loans to improve their businesses and make them

    more competitive.

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    IFC has held a number of meetings with two banks (GT Bank and Stanbic Bank) which may lead to

    the start of this component. It is still not very clear when this component will finally take off.

    2.1.2. PARTIAL CREDIT GUARANTEEThe Partial Credit Guarantee (PCG) offers participating banks some cushion on the losses they may

    occur in dealing with MSMEs. This is to motivate the participating banks to improve lending to

    MSMEs.

    Ecobank has signed on and is operational. No claims have been made on the facility so far, and it is

    hoped that the need will not arise.

    CAL Bank is going through the final formalities to sign on to the PCG. The Risk Sharing Agreement is

    being finalized, and should be signed within the third quarter.

    2.1.3. TECHNICAL ASSISTANCE TO BANKSThis component is meant to improve the (M)SME Departments of participating banks to enable

    them better understand the SME sector and improve lending to MSMEs.

    Ecobank has completed two phases (quarters) of the Technical Assistance Program which is being

    offered by the Frankfurt School of Finance and Management and have started the final phase

    which will end in October 2011.

    2.1.4. ADDITIONAL FINANCIAL INSTRUMENTSDuring the project design stage, it was proposed to set up a Ghana Diaspora Equity Fund (GDEF) to

    mobilize funds from Ghanaians in the Diaspora for investment into the MSME sector. The

    component run into a few problems in its implementation and had to be re-started.

    Currently, the MSME Project is working at developing the regulatory and legal framework to

    facilitate the implementation of this component by interested private sector players. Efforts arebeing made to obtain assistance from various quarters including the Security and Exchange

    Commission and the Ghana Stock Exchange.

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    2.2. ACCESS TO MARKETS2.2.1. BDS FUNDThe objectives of the BDS Fund Matching Grant Scheme are to offer essential Business

    Development Services to MSMEs and to develop the market for these services. The first phase of

    the BDS came to an end in April 2010, and a new Fund Manager Triodos Facet has been selected

    to implement the second phase.

    The contract for Triodos Facet was signed in March 2011, and they implemented the inception phase

    immediately thereafter. The actual implementation of the BDS was delayed due to unacceptable

    changes in the implementation team of Triodos Facet. The issues were resolved in the latter part of

    the second quarter, and implementation is scheduled to start in July 2011.

    2.2.2. INDUSTRIAL SUB-CONTRACTING & PARTNERSHIP EXCHANGES (SPX)The Association of Ghana Industries (AGI) is implementing this component, which aims to

    encourage large firms to sub-contract some aspects of their contracts to smaller companies, and

    also to improve the capacity of the smaller companies to implement these sub-contracts.

    In 2010, the AGI through the assistance of the SPX Consultant funded by the MSME Project

    established twenty-three sub-contracts in the construction sub-sector. The consultant also

    prepared training modules to improve the capacity of the MSMEs to implement the sub-contracts.

    The AGI proposed to implement a test-run of the training modules within the first half of 2011. This

    was however not implemented. It is hoped that AGI will implement this activity within the third

    quarter.

    2.2.3.WEB-BASED PRODUCT GALLERYThe objective of the Web-Based Product Gallery (WBPG) is to provide an online platform to display

    made-in-Ghana products to interested buyers/ investors. It was designed to complement a physical

    product gallery that would serve as a showroom for made-in-Ghana products. This component is

    being implemented by the Domestic Trade & Distribution of MOTI.

    Since 2008, information had been collected from various companies to develop the WBPG. A

    number of changes were proposed and made on this component. In December 2010, the Hon.

    Minister instructed that the WBPG be developed while more background research is made on the

    World Trade Portal - which was suggested along the line.

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    Activities implemented under this component from January to June 2011 include the development

    of TOR for the assignment, cleaning of existing data, and photography of products. Due to

    problems with the selected firm (to develop the WBPG), the second place firm has been furnished

    with the TOR to submit technical and financial proposals.

    It is expected that the WBPG will be up and running by the end of the third quarter of 2011.

    2.3. ENTREPRENEURSHIP DEVELOPMENT2.3.1. ABRAFO CRAFT VILLAGES & TOURISM VALUE CHAINThe Central Region Development Commission (CEDECOM) is implementing the two components

    Upgrading of the Abrafo Handicrafts Centre and a study on the Tourism Value Chain.

    The Abrafo Craft Villages component has experience significant, yet unnecessary, delays in

    implementation. The Board of CEDECOM has been reluctant in allowing the PCU of the MSMEProject to offer Technical Assistance to facilitate the speedy implementation of the component

    since the beginning of 2011. The component is still in the early days of procurement; a consultant is

    being selected to prepare designs, drawings and bidding document for selection a contractor. It is

    hoped that the consultant will be in place by the end of the third quarter of 2011.

    Request for Expressions of Interest for the study on Tourism Value Chain were published in the

    second quarter of 2011, and responses have been evaluated. The shortlisted firms will be furnished

    with Requests for Proposals in the third quarter of 2011.

    2.3.2.CREATIVE INDUSTRIESA Creative Industries Specialist was recruited to coordinate research into the creative industries,

    organize a national forum to validate the findings, and assist the Ministry of Trade and Industries in

    promoting the creative industries.

    During the first half of the year, TOR was developed to recruit a researcher undertake the research

    activity. Procurement processes were followed, and a researcher was thus selected. The contract

    has been submitted to the Hon. Minister for signature.

    It is hoped that the researcher will commence work in the third quarter.

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    2.3.3.ELECTRICITY AT ADJABENGThis project component is being implemented by MOTI, and its main objective is to facilitate the

    procurement and installation of electrical transformers at the Garment Producers Enclave at

    Adjabeng in Accra.

    By the end of December 2010, the designs for the installation had been done, and bidding

    documents had been prepared for the selection of a contractor to procure and install the

    transformers.

    From January to June 2011, procurement processes led to the selection of a contractor (B. Appah

    Electricals). The site has been handed over to the contractor, and processes have been initiated to

    procure the transformers. To ensure that compatible and durable transformers are procured, MOTI

    is collaborating with independent technical experts to inspect the specification of the transformer

    every step of the way.

    2.3.4.ICT PARKThe Information Technology Enables Services (ITES) department of the Ministry of Communication

    (MoC) is the implementing agency for this component. The objective of the component is to

    facilitate the design and construction of the first phase of the first ICT Park in Ghana.

    Consultants (Garland Ormond International) were selected in 2010 to design the concept, develop

    architectural drawings and supervise the construction of the ICT Park. A study tour of ICT Parks in

    China, India and Malaysia was conducted in December 2010, and the lessons learnt were

    incorporated in the design of the concept for Ghanas ICT Park.

    Concepts for the development of the ICT Park were submitted in the first quarter of 2011, and

    following approval by the PCU and implementing agency, the consultant continued to prepare

    architectural and engineering drawings. Stakeholders meetings were organized in the first two

    weeks of June 2011 to review the drawings and bidding documents.

    Procurement processes will be set in motion to select a contractor within the second half of 2011.

    2.3.5.RURAL TECHNOLOGY FACILITIESThe Rural Enterprises Project (REP) is the implementing agency for this component, which aims to

    construct and equip three Rural Technology Facilities (RTFs) in Damongo, Awutu Senya and

    Somanya.

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    The year began with the selection of a Consultant to review and revise the existing designs and

    prepare bidding documents for the selection of a contractor.

    There were some delays due to formatting errors in the bidding documents and gaps in

    communication. The bidding documents were re-formatted by the MSME Project, and adverts are

    scheduled to appear in the national newspapers in July 2011.

    2.3.6.STORM DRAIN & WATER AT MPIPStorm Drain

    Companies operating in the Multi-Purpose Industrial Park (MPIP) in Tema experience flooding after

    any medium-to-heavy rainfall. A request was made to the MSME Project to use some of its funds to

    fund the construction of a Storm Drain to alleviate the flooding in the area.

    Due to the urgency of the issue (the Ghana Meteorological Service forecasted heavy rains in May

    June 2011), the MSME Project requested for a no objection to select a consultant by single sourcing.

    The Ghana Free Zones Board (GFZB) objected to selection of a consultant by this method. After

    much deliberation, the assignment was split into, with the MSME Project and the GFZB funding the

    two phases which could run concurrently.

    Requests for Expressions of Interests were published and shortlisted was done. The GFZB and the

    Hon. Minister have objected to the shortlisting of two firms with some common personnel which,

    according to the procurement hubs of the MSME Project and the Ghana Office of the World Bank, is

    permissible. The procurement process is at a stand-still, pending the resolution of the above-

    mentioned issue.

    Improvement of Water Supply

    The MSME Project is also supporting the Improvement of Water Supply at the MPIP. Although

    there is a water storage system in the enclave, this is not enough to meet the increasing demand as

    more companies move into the area.

    The MSME Project recruited a consultant to design and install equipment to improve the water

    supply at the enclave. The consultant is facing significant challenges in locating and acquiring a

    piece of land for the installation of the equipment. A plot of land was identified in the beginning of

    the year, but negotiations broke down along the way.

    The MSME Project has therefore advised the consultant to continue searching for a suitable

    location for the installation of the equipment.

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    2.4. TRADE FACILITATION2.4.1. EXPORT TRAINING MODULES & PROCESSED FOODSThe Ghana Export Promotion Council (GEPC) is implementing the two components.

    In the first component (Export Training Modules) the MSME Project is assisting GEPC to develop

    new training modules (which take into consideration current trends) for the Export Training School.

    The consultant has completed the modules and conducted a Training of Trainers (TOT) workshop

    to prepare selected trainers to use the modules, and also to be able to develop additional modules

    if the need arises. GEPC will incorporate the new training modules in its Export Training Courses.

    In the second component, GEPC has contracted a consultant to conduct a needs assessment

    involving fifty (50) companies in the processed foods sub-sector. The objective is to facilitate the

    trading of processed foods in the developed markets. The consultant (PriceWaterhouseCoopers) is

    yet to submit the final report on the assignment. It is expected that they will submit it within the

    third quarter.

    2.4.2.NATIONAL EXPORT STRATEGYA consultant was contracted to develop a National Export Strategy to guide the Ministry of Trade in

    the management of Exports.

    In January 2011, a team was constituted to review the draft report, and the comments and

    suggestions were given to the consultant for incorporation into the document.

    In June 2011 (after much delay on the part of the consultant) another workshop was held to review

    the revised report. The review panel was still not impressed with the work done by the consultant.

    The consultant has been given some more time to finalize the strategy document for use.

    2.4.3.PTIS/ SME DATABASEThe aim of this component is to establish a Proactive Trade Information System (PTIS) and aDatabase of SMEs in Ghana. This component is being facilitated by the NBSSI.

    Prior to January 2011, the component had under gone a number of changes, and finally NBSSI was

    selected as the Implementing Agency responsible for the PTIS/ SME Database.

    The year 2011 started with the finalization of the Terms of Reference for the development of the

    PTIS/ SME Database. Procurement processes lead to the selection of eSolutions Consulting Ltd as

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    the preferred developer. The contract was signed on June 1, 2011, and be the end of the first half of

    the year, the consultant had submitted and revised the inception report, and had started gathering

    information for the assignment.

    It is expected that the assignment will be completed by the end of the third quarter.

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    3. REPORT ON PROJECT INDICATORSSUB-

    COMPONENTS

    INDICATORS 2010 1st

    Half

    2010 2nd

    Half

    2011 1st

    Half

    Partial Credit

    Guarantee

    Number of loan officers trained/coached 54

    Number of loans disbursed by FIs to

    MSMEs

    92

    Value ($) of loans disbursed by

    participating FIs to MSMEs

    3,112,505.73

    Outstanding SME Loan Portfolio (US$) 1,444,693.16

    Number of active loan accounts 75

    Percentage of SME loan portfolios at risk 0

    Updating and

    enforcing

    regulations

    Number of accreditation institutions to

    certify MSME products

    2 2

    Number of MSME products certified 74 71

    Improving

    Business

    Registration

    Process

    Average number of days to register a

    Sole Proprietorship

    4 4 4

    Average number of days to register a

    Subsidiary Business Name

    4 4 4

    Average number of days to register a

    Partnership

    4 4 4

    Average number of days to register a

    business Limited by Guarantee

    4 4 4

    Average number of days to register a

    Limited Liability Company

    8 8 8

    Average official cost to register a Sole

    Proprietorship

    35.00 35.00 35.00

    Average official cost to register a

    Subsidiary Business Name

    35.00 35.00 35.00

    Average official cost to register a

    Partnership

    75.00 75.00 75.00

    Average official cost to register abusiness Limited by Guarantee

    155.00 155.00 155.00

    Average official cost to register a Limited

    Liability Company *(+ 0.5% of stated capital)

    175.00 175.00 175.00

    Number of businesses registered: Sole

    Proprietorship

    12,254 15,074

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    SUB-

    COMPONENTS

    INDICATORS 2010 1st

    Half

    2010 2nd

    Half

    2011 1st

    Half

    Number of businesses registered:

    Partnership 98

    102

    Number of businesses registered:

    External Company 45

    52

    Number of businesses registered:

    Guaranteed Company 1,984

    2,161

    Number of businesses registered:

    Limited Liability Company

    6,609 8,094

    Number of businesses registered:

    Subsidiary Business Name

    163 226

    Total number of businesses registered 21,153 25,709

    Meetings - PCU,

    TC

    Number of PCU meetings scheduled 12 12 12

    Number PCU meetings held 6 8 8

    Number of Technical Committee

    meetings scheduled

    6 6 6

    Number of Technical Committee

    meetings held

    0 5 5

    Monitoring

    Activities

    Number of Implementing Agencies

    active

    8 9

    Number of reports expected from

    Implementing Agencies

    48 45

    Number of reports received from

    Implementing Agencies

    15 16

    Average number of days reports aredelayed

    9 1.69

    Evaluation of project

    components

    Number of evaluation assignments

    conducted

    0 1 1

    Audits (Tech., Fin.,

    Procurement, )

    Number of audits conducted on project

    supported systems

    1 1 2

    Training

    Workshop

    Number of training programs organized 0 8 2

    Number of people benefiting from

    training programs

    0 122 16

    Study ToursNumber of study tours organized 0 3 1

    Number of people sponsored for study

    tours

    0 20 2

    Number of effective man days of study

    tour sponsored

    0 134 10

    Conferences Number of participants sponsored for

    conferences

    8

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    4. FINANCIAL SUMMARYEXPENDITURE

    CATEGORY

    ORIGINAL

    FUND

    ALLOCATION

    IDA

    IDA

    DISBURSEMENT

    TO DATE

    GOG

    DISBURSEMENT

    TO DATE

    Others TOTAL

    US $ US $ US $ US $ US $

    [1] Works

    11,162,908.77 43,403.10 537.65 - 43,940.7

    [2] Goods

    2,831,799.00 985,536.65 58,583.85 - 1,044,120.5

    [3] Consultants'

    Services &

    Audit

    9,492,341.53 3,760,587.83 225,970.56 5,000.00 3,991,558.3

    [4] Training

    1,082,975.00 806,510.85 6,603.64 - 813,114.4

    [5] Operating

    Costs 759,105.00 572,043.65 233,614.27 149,126.55 954,784.4

    [6] BDS Grants

    3,935,531.00 2,211,127.76 - 1,636,685.53 3,847,813.2

    [7] LOC

    Performance

    Grants

    250,000.00 - - -

    [8] Sub-Programs

    (Pooled

    Account)

    1,800,000.00 1,800,000.00 - - 1,800,000.0

    [9] Partial Credit

    Guarantees 3,685,339.70 1,185,339.70 - - 1,185,339.7

    TOTAL

    35,000,000.00 11,364,549.54 525,309.97 1,790,812.08 13,680,671.5

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    5. PROCUREMENT REPORT

    SUB COMPONENTS

    IMPLEMENTATION STATUS/PROGRESS

    STATUS/ISSUES FACED

    COMMENTS

    PROCUREMENT STAGE VALUE USD

    ACTIVITY

    START

    DATE

    PREVIOUS DATE CURRENT DATE TURN

    AROUND

    TIME

    (DAYS)

    PLAN ACTUAL

    PROCUREMENT

    CONSULTANCY-PRIOR REVIEW

    i. Consultant to develop

    PROJECT COORDINATING UNIT

    Ghana Diaspora Equity

    Fund QCBS

    ii. Storm Drain -QCBS

    CONSULTANCY-POST REVIEW

    MINISTRY OF TRADE &INDUSTRY

    ii. Web Based Product

    Gallery

    - CQS

    i. Research intoCreative

    PROJECT COORDINATING UNIT

    N/A

    30 03 11

    17 02 11

    Submission of

    TOR for no

    objection

    Advertisement of

    EOI

    Invitation to

    submit companys

    profiles

    26 01 11

    30 03 11

    17 02 11

    Receipt of no

    objection to TOR

    Submission of

    EOI report &

    Draft RFP

    Clarification on

    contract issues

    N/A

    N/A

    N/A

    N/A

    N/A

    N/A

    700,000.00

    200,000.00

    50,000.00

    N/A

    N/A

    N/A

    The TTL has proposed to t

    PCU to only focus

    addressing the le

    framework for t

    establishment of the fund.

    EOI responses were evaluat

    on 3/5/2011. The GFZB a

    the Hon. Minister have rais

    some issues on the evaluat

    process. These issues a

    being resolved for the proc

    to continue

    Contract negotiations we

    held with Consultant, Silky

    on the 11/4/11. Howev

    Client had some issues on t

    qualifications and experien

    of the Key staff of t

    selected firm since it do

    meet the requirement of t

    TOR. Client clarifying issu

    for the next evaluated firm

    be invited to submit bo

    technical and financ

    proposals.

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    SUB COMPONENTS

    IMPLEMENTATION STATUS/PROGRESS

    STATUS/ISSUES FACED

    COMMENTS

    PROCUREMENT STAGE VALUE USD

    ACTIVITY

    START

    DATE

    PREVIOUS DATE CURRENT DATE TURN

    AROUND

    TIME

    (DAYS)

    PLAN ACTUAL

    Industries QCBS

    ii. Rural TechnologyFacility (RTF) CQS

    iii. Abrafo CraftVillage- CEDECOM- QCBS

    iv. PTIS and SMEDatabase QCBS

    v. TriangularTourism CEDECOM

    vi. Re-launch ofMSME Website

    27 01 11

    10 01 11

    05 01 11

    24 01 11

    Advertisement of

    EOI

    Invitation to

    submit companys

    profiles

    Advertisement of

    EOI

    Advertisement

    EOI

    27 01 11

    10 01 11

    05 01 11

    24 01 11

    Financial

    Proposals

    opening

    Commencement

    of work

    Submission of

    report on

    technicalevaluation

    Consultants

    commenced

    work

    31 05 11

    04 04 11

    31 05 11

    01 06 11

    120 days

    2 days

    N/A

    120 days

    100,000.00

    50,000.00

    100,000.00

    100,000.00

    N/A

    37,566.00

    N/A

    90,850.00

    Consultants financ

    proposals were opened the 31/5/2011. Minutes

    financial opening forward

    to Minister for her revie

    She has raised some issues

    the firms whose proposa

    were opened she is yet

    respond.

    Contract was signed by t

    Hon. Minister on 30/3/20

    Contract was signed by t

    consultant on 4/4/20

    Consultants have sin

    commenced wo

    Assignment on going.

    RFPs were issued

    consultants on 20/4/20

    Consultants propos

    received on 26/5/20

    Consultants proposals we

    evaluated by CEDECOM

    31/5/2011. CEDECOM yet

    submit technical evaluat

    report to the PCU for review

    Contract was signed

    consultant on 31/5/20

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    SUB COMPONENTS

    IMPLEMENTATION STATUS/PROGRESS

    STATUS/ISSUES FACED

    COMMENTS

    PROCUREMENT STAGE VALUE USD

    ACTIVITY

    START

    DATE

    PREVIOUS DATE CURRENT DATE TURN

    AROUND

    TIME

    (DAYS)

    PLAN ACTUAL

    vii. Cotton Pricing -SSS

    NON-CONSULTING SERVICES-

    POSTREVIEW-GOODS

    i. Supply ofSubstationEquipment atAdjaben- NCB

    i. Supply andInstallation of Air

    conditioners -

    Shopping

    08 04 11

    N/A

    N/A

    Advertisement of

    EOI

    Invitation to

    submit

    Companys

    profiles

    Request for no

    objection to TOR

    and CVs

    08 04 11

    17 02 11

    25 03 11

    Submission of

    EOI short listing

    & Draft RFP

    Contract signing

    Contract signed

    N/A

    N/A

    05 04 11

    N/A

    N/A

    10 days

    50,000.00

    5,000.00

    12,000.00

    N/A

    15,812.50

    12,426.00

    Consultant commenced wo

    on 1/6/2011. Consultant h

    a kick off meeting with clieon 2/6/2011. Assignment

    going.

    EOI short listing report h

    been reviewed a

    comments forwarded

    CEDECOM on 23/6/2011

    re-submit report with t

    draft RFP for review

    Draft contract was forward

    to the Hon. Minister and shas proposed the MSM

    website could be hosted

    the Ministrys domain. Issu

    being discussed by MOTI a

    PCU for final decisions to

    taken.

    No objection to sign contr

    was received on the 4/4/20

    Contract was signed on t

    4/4/11.Consultant

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    MSME PROJECTMinistry of Trade & Industry

    17

    SUB COMPONENTS

    IMPLEMENTATION STATUS/PROGRESS

    STATUS/ISSUES FACED

    COMMENTS

    PROCUREMENT STAGE VALUE USD

    ACTIVITY

    START

    DATE

    PREVIOUS DATE CURRENT DATE TURN

    AROUND

    TIME

    (DAYS)

    PLAN ACTUAL

    27 04 11

    22 02 10

    Deadline for

    submission andbid opening

    Invitation to

    quote

    03 03 11

    17 03 11

    Delivery &

    Installation ofTransformers

    Contract Award

    N/A

    28 03 11

    N/A

    11 days

    420,000.00

    6,000

    414,949.06

    6,016

    commenced work

    5/4/2011. Assignme

    completed on 14/4/2011.

    Contractors submitt

    specifications which ha

    been reviewed were fou

    unsatisfactory and w

    rejected. Contractors ha

    submitted new specificat

    which is being reviewed

    client, if accepted t

    transformers will be ordere

    Contract has been issued

    supplier. Air conditioners yto be delivered and installe

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    6. CHALLENGES6.1. GOVERNMENT COUNTERPART FUNDINGThere are a number of activities for which the MSME Project owes the 10% Government of Ghanacounterpart funds. The PCU received notice of the release of some part of the outstanding

    counterpart funds since early May 2011, but the funds had not yet reflected in the accounts at the

    end of June 2011.

    6.2. OBSTACLES IN PROJECT IMPLEMENTATIONSome Implementing Agencies have significantly contributed to the delay in project implementation.

    Notable among them are the Ghana Free Zones Board and CEDECOM.

    6.2.1. GHANA FREE ZONES BOARDThe GFZB are responsible for the implementation of Improvement of Water Supply at the Multi-

    Purpose Industrial Park. They have not shown appreciable interest in the implementation of this

    component, which has caused significant delay in its implementation.

    6.2.2.CEDECOMCEDECOM is implementing the Abrafo Handicrafts Centre and Tourism Value Chain

    components. They are unwilling to accept technical assistance from the PCU, and have committed

    various blunders in the procurement process, and this has resulted in significant delays in the

    implementation of their components.

    6.3. MSME WEBSITEThe hosting contract for the MSME website and emails expired in the second quarter, and it has

    taken the PCU some time and effort to get the original service providers to rectify the issue. This

    has resulted in lack of access to the Project Website and emails.

    The problem is being resolved, and this will fortunately lead to improved management of the

    Website.

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    MSME PROJECT

    7. CONCLUSIONThe PCU has in the first half of 2011 worked closely with the Implementation Agencies and has

    facilitated the fast-tracking of some components. Components that made significant progress

    include the ICT Park and Proactive Trade Information System/ SME Database.

    In the second half of the year, the following milestones are expected;

    COMPONENT EXPECTED STATUS

    Proactive Trade Information System/ SME Database

    Website up and running

    Web-Based Product Gallery Website up and runningTechnical Assistance to CAL Bank Consultant recruited and starting work

    ICT Park Contractor recruited and starting workRural Technology Facilities Contractors recruited and starting

    workElectricity at Adjabeng Transformers installedBDS Fund Support to Value Chains started