Ghana to approve PPP law by year end

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Ghana to approve PPP law by year end

The Government of Ghana and its advisors are finalizing a draft public and private partnership (PPP) law. The piece was already reviewed twice by the World Bank team and it will soon be presented to the cabinet for approval. After that, it will be presented to Parliament for consideration and passage into law by the end of 2014.  

The PPP law is expected to help government leverage private resources to bridge the Ghana's large infrastructure deficit.

The World Bank is supporting the launch of PPP projects in Ghana through a US$30 million loan to the government. According to a World Bank document, the split of the loan is the following:

  • Institutional, Fiduciary, Legislative and Financial Capacity Building -  $10.00 million
  • PPP Pipeline Preparation and Transaction Advisory Support -  $18.50 million
  • Project Management and Monitoring & Evaluation -  $1.50 million

Ghana has already used part of this loan to finance transaction advisory contracts. The government has launched the following tender processes to hire transaction advisors to structure PPP projects:

  • Office Accommodation Complex on a PPP arrangement. The Securities and Exchange Commission (SEC) under theMinistry of Finance (MOF) intends to pursue the development of an office accommodation complex. The request for expressions of interest was issued in November 2013.

  • Sports and residential/camping facilities PPP project at The National Sports College in Winneba. The project involves a multi-purpose sports complex, swimming pool, self-contained female hostel, cafeteria, synthetic soccer pitchandordinary soccer pitch conforming to the standards for national and international level events. The request for expressions of interest was issued in August 2013.

  • Accra - Tema Motorway PPP project. The project is part of the Trans West African Highway corridor which links the West African coastal cities starting at Dakar all the way to Lagos. The request for expressions of interest was issued in August 2013.

  • Boankra Inland Port and Eastern Railway Line PPP project. The project aims to ease the congestion at the main ports in Ghana, the Tema and Takoradi ports, and also to bring import and export services closer to the door-steps of shippers in the northern part of Ghana as well as in the landlocked neighbouring countries of Burkina Faso,Mali and Niger. The request for expressions of interest was issued in August 2013.

  • Accra - Takoradi Road Dualisation PPP project. The project objective is to increase the capacity of the highway to improve traffic flow in the area. The request for expressions of interest was issued in August 2013.

  • Port of Takoradi PPP project. The project objective is to find PPP opportunities at the port. The request for expressions of interest was issued in July 2012.

Mrs Magdalene Apenteng, the Director of the Public Investment Division of the Ministry of Finance and Economic Planning (MoFEP), stated at the launch of the first Global PPP conference to be held in Ghana from August 18- 21, 2014:

There are about 15 projects in the pipeline, with six being effectively prepared by various transaction advisors that are on board, and I am hopeful that by next year some good projects would be seen on the ground.

We have just spent about US$3 million to do initial studies and preparation to move into action. Between US$12 and US$15 million of the facility is for project development. I just want to understand that depending on the size of project, the amount used for preparation could be very big. We have assumed a smooth-saving position, and I am sure we are going to move faster. We are hopeful that by next year we should have some of these projects on board.

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