the ghana ppp unit ministry of financepppglobalconferences.org/files/ghanapppunit.pdf · ppp...
TRANSCRIPT
THE GHANA
PPP UNIT
MINISTRY OF
FINANCE
Since 2007….
History of the Ghana PPP Unit could be traced to “THE
BUDGET STATEMENT AND ECONOMIC POLICY OF THE
GOVERNMENT OF GHANA FOR THE 2007 FINANCIAL YEAR
presented to Parliament on Thursday, 16th November, 2006 by the late Kwadwo Baah-Wiredu;
Page 418…(para: 1260-1262):
Private Finance Initiatives (PFI)
“1260. Mr. Speaker, private finance initiatives are
increasingly emerging as a cost effective
approach for public authorities to procure the
services of the private sector to design, finance,
build, and operate public facilities thus enabling
the government to limit its initial outlays”;
Since 2007….
“1261. In line with our belief in the private sector,
the Government will from the 2007 fiscal year
promote the use of Private Finance Initiatives (PFI)
to stimulate private investment in public sector
projects. In this regard Government will identify
projects to be implemented with PFIs. Amongst the
projects to be pursued are schools, residential and
office buildings. To facilitate the achievement of
this novel idea, MOFEP in cooperation with the
private sector will develop a framework for Private
Finance Initiatives to assist MDAs in applying the
Private Finance Initiative Model”;
Since 2007….
“1262. Mr, Speaker, in 2007, government will be inviting the private sector as PFI partners in the following key initiatives:
The construction of a state-of-the-art-Training Centre for all the security agencies and funding of Government involvement in the U.N. Peacekeeping Programmes of the Ministry of Defence and the Ghana Police Service.
As a way of generating income, Government will also partner with the private sector to construct state-of-the-art health facilities across the country, including the construction of a dedicated orthopedic hospital. The facilities will be utilized by the international community including those in the sub-region as referral points;
A centralised Revenue Training College for all revenue agencies will be established to provide training programmes to aid in improving the skills of the staff of the Revenue Agencies
Since 2007…. Establishment of a Project and Financial Analysis (PFA) Unit as
a specialist unit within the MOFEP to handle a range of project and financial analysis assignments;
undertaking major investment projects which is designed to
leverage government resources significantly by structuring
projects using PPP and Private Finance Initiative Procurement methods;
drive and coordinate the PPP process within government
by develop the legislative framework, technical and policy
guidance to support the PPP process and to disseminate
best practice in PPPs;
Launch of formal PPP Programme
MOF in 2009 launched a formal PPP Programme
through a Ghana PPP Diagnostic Study;
2010 till date…. MOF in 2010 established the Public Investment Division (PID)
as the Ghana PPP Advisory team to take a lead role over the PPP Programme in Ghana;
Director
Project & Financial
Analysis Unit
PPP Advisory Unit
Public Entities Unit Strategic Projects
2010 till date…. Functions:
Provide value added project development advice and project transaction support to MDAs, MMDAs, state-owned-
and controlled entities/companies or corporations, state
universities and colleges, and other contracting authorities
in the public sector to enhance the identification, preparation of feasibility analysis, structuring, procurement,
negotiation and contract management/ re-negotiation of
PPP projects;
Build capacity among public sector stakeholders, MMDAs and MDAs, to enable them to lead the implementation of a
PPP project from start to finish in a professional and
technically competent manner;
Serve as secretariat to the PPP Approval Committee;
2010 till date…. Functions:
Promoting awareness & understanding of Ghana’s PPP programme in Ghana & internationally as well as
sensitisation amongst MDAs/MMDAs & Public Contracting
Authorities in order to encourage the use of PPP for
selected appropriate projects;
Act as a centre of excellence for PPPs in Ghana and take
lead responsibility for preparing mandatory policy and
guidance material, including model contracts, lessons
learned, and case studies, plans, etc;
Review of fiscal impact and appropriateness of guarantees
and other kinds of government financial support (e.g. tariff
support, grants);
Screen PPP projects to ensure consistency with government
policy;
2010 till date…. Functions:
Ensure compliance with administrative procedures, required contents of documents submitted, etc.;
Ensure adherence to good PPP procurement practices;
Broad value for money (net economic benefit to society) of
PPP projects;
Provide assistance to MDAs, MMDAs and other Contracting
Authorities that want to promote PPPs in their respective
sectors and developing in collaboration with the relevant stakeholders, Model Agreements for that sector;
Assist MDAs, MMDAs and other Contracting Authorities in
understanding approval requirements of the PPP process
and developing necessary documents for review;
2010 till date….Progress Cabinet approval & launch of National Policy on PPPs in June
& October, 2011 respectively;
“PPP champion” appointed to give strong leadership & drive
political commitment to the use of PPPs in delivering public
infrastructure & services;
Establishment of PPP teams/cells at various government
MDAs/MMDAs;
Draft PPP Law submitted to Cabinet;
Ongoing PPP Pipeline identification;
Toolkit for processing & assessing unsolicited proposals for PPP
projects;
Preparation of guidance note on PPP project life cycle
process;
2010 till date….Progress Government support & intervention through design of
instruments such as:
Project Development Facility (PDF);
Viability Gap Scheme; &
Infrastructure Finance Facility
Framework for Managing Fiscal Commitments (FC) &
Contingent Liabilities (CL) associated with PPPs
On-going Capacity Building & Training across various
government MDAs;
PPP promotion, awareness & sensitisation;
Quarterly publication on PPPs (PPP Quarterly Bulletin);
PPP dedicated website;
2010 till date….Progress Government support & intervention through design of
instruments such as:
Project Development Facility (PDF);
Viability Gap Scheme; &
Infrastructure Finance Facility
Framework for Managing Fiscal Commitments (FC) &
Contingent Liabilities (CL) associated with PPPs
On-going Capacity Building & Training across various
government MDAs;
PPP promotion, awareness & sensitisation;
Quarterly publication on PPPs (PPP Quarterly Bulletin);
PPP dedicated website;
2010 till date….Progress
Best Technical Advisor Best Economic Development Project
Middle East & Africa
Challenges…. Administrative bottlenecks, red-tapism and unnecessary
bureaucracy delaying PPP processes;
Inadequate staff, skills, expertise and enough authority to
oversee the key phases of the project cycle;
Inability to attract highly skilled staff and expertise to PID due to its current set up as a civil service entity;
Conflict of interest functions as staff involved in
Gatekeeping/Approval functions are also involved in PPP project development advice and project transaction support
and vice versa;
The single unit structure seems to provide difficulty and does
not give a strong motivation to staff to proactively push
projects along if the same staff members are the ones who
must approve the projects at key points in the project cycle.
Contact Details:
Public Investment Division
Ministry of Finance
P.O. BOX M. 40
Accra, Ghana
+233-302-747197 ext. 6819, 7912, 6717
www.mofep.gov.gh/divisions/pid