Project

PPP PROGRAMME UPDATE Public Private Partnership in Ghana 6 November 2014 Government of Ghana MOF - PID Accra Ghana,2014

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OUTLINE 

PID – Who we are and what we do

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Objectives of the PPP Policy

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Our accomplishments

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Communications Strategy

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Key Projects

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PUBLIC INVESTMENT DIVISION 

MOF, 4 Units – PFA, PAU, PE, SPU

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Developing a national public investment policy

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We advice government on the best ways of implementing development projects

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We ensure efficient allocation of resources for public investments

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We perform gateway and advisory functions regarding all public sector projects and provide oversight management of SOEs

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We are implementing the national PPP programme 3

Background  Demand for infrastructure increased – inadequate funding;  Proven involvement of the private sector – energy provision;  Clear benefit for both the public and private sector entities resulting in increased value for money  Effective maintenance and renewal of public services.  As an emerging lower middle income country

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Objectives of Ghana PPP Policy 

Combine public and private resources to build infrastructure;

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Encourage and facilitate investment by the private sector;

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Increase the availability of public infrastructure

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Improve service quality and efficiency of projects;

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Set up efficient and transparent institutional arrangements for the delivery of PPP Projects;

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Provide a framework for identifying, developing efficient risk mitigation and sharing mechanisms;

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Encourage and promote indigenous Ghanaian private sector participation 5

OUR ONGOING WORK 

Assisting MDAs to process and manage PPP projects, through TA support, capacity building and advisory services;

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Working with relevant institutions to legislate on a PPP law leading to the establishment of appropriate regulations and guidelines;

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Working to complete the development of several pipeline PPP projects

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Training public sector officials to become proficient in PPP project management

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Working with Ghana’s private sector and engaging them for efficient PPP project delivery

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Sensitizing the programme’s key publics on the rationale, benefits and requirements of the PPP programme

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Work on developing a Project Development Fund (PDF)

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OUR ACCOMPLISHMENTS - I 

Developed and operationalized a public investment management system, PIMS

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Adopted a national Policy on PPP –

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Drafted a PPP Law for passage with several stakeholder participation

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Sponsored and participated in conferences and workshops (local and international) that have exposed public sector officials to best practices in PPP project management;

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Established the FCTC 7

OUR ACCOMPLISHMENTS - II 

A comprehensive capacity building exercise is still ongoing. We organized successful study tours to Malaysia, Singapore (2), South Africa and Lesotho, S. Korea

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Comprehensive capacity building programme – institutional and individual level

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Trained over 200 Ghanaians in PPP project management

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Engaged the Institute of Languages to translate the policy into 6 local languages and Hausa for more efficient programme communications, dialogue and engagement.

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Communication Strategy I Media Platforms  Media Platforms

Non-Media Platforms Posters

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Traditional Media

Billboards

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TV

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Radio

Digital Communications/Media/Mar keting including:

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Newspapers

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Magazines

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Brochures and Flyers

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Press Releases

Facebook / Twitter

Quarterly News Letter Website 9

Some key projects Project

Transaction Status

• Accra-Takoradi Road Dualisation

• Final draft of pre-feasibility report to be presented by end of October. • Technical & Financial Evaluation report submitted for No Objection.

• Takoradi port • KIA Airport

• The GACL and MoT are currently in discussions with the MoF regarding possible PPP options.

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Some Key projects Project

Transaction Statis

• Asutsuare Water Treatment

• The Transaction Advisor is completing the final interim report on the private party proposal.

• The Transaction Advisor is completing the final interim report on the private party proposal. • Local Markets • Accra-Tema Motorway

• Contract for Transaction Advisor to be finalised this month – October 2014. • The RFP has been shared with the short listed firms. • The technical evaluation report is currently being reviewed by the World Bank. 11

Some key projects Projects

Transaction Status

• Urology Health Project

• The Transaction Advisor is currently conducting the pre-feasibility study.

• Eastern Rail and Inland Port

• National Airline • Security Exchange Commission Building

• A review meeting of inception report completed by the Transaction Advisor was held at the end of August 2014. • Transaction Advisor contract was signed August 20, 2014. • The RFP was given No Objection On Sept 15, 2014. 12

1. BOANKRA INLAND PORT & EASTERN RAILWAY LINE PROJECT NO.

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BRIEF DESCRIPTION

CONTRACTING AUTHORITY

PROGRESS REPORT

CHALLENGES

An Inland Port was started in Boankra, in the Ashanti Region, some years ago, but was not completed. The project seeks to complete the Inland Port and rehabilitate the Eastern Railway Line from Tema to Boankra to enable haulage of cargo by rail.

Ministry of Transport & relevant Agencies (Ghana Shippers Council & Ghana Railway Development Company)

A Transaction Advisor The Project is ongoing was recruited in the with little or no 3rd quarter of 2014. hitches. They have started work and have produced and Inception Report, which has been accepted by the Contracting Authority. They are currently working on the PreFeasibility Assessment. The Pre-Feasibility Assessment Report (PFAR) is expected 13 to be submitted by mid-October 2014.

2. ACCRA-TAKORADI DUALIZATION PROJECT NO .

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BRIEF DESCRIPTION

CONTRACTING AUTHORITY

PROGRESS REPORT

CHALLENGES

The Government of Ghana seeks to expand the Accra – Takoradi portion of Trans-Ecowas Highway into a 3-lane dual carriage toll road.

Ministry of Roads & Highways (and its Agency – Ghana Highway Authority)

A Transaction Advisor was recruited in December 2013 and has almost completed the Pre-Feasibility Assessment. The final report is to be submitted in October 2014.

Delays caused by the Contracting Authority in managing the project have led to the need for a no-cost extension of the project. It has taken about 3 months to obtain approval for, and sign the contract for the extension to complete the PFAR.

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3. TAKORADI PORT EXPANSION PROJECT NO . 3

BRIEF DESCRIPTION

CONTRACTING AUTHORITY

PROGRESS REPORT

CHALLENGES

The Ghana Ports and Harbours Authority seeks to expand sections of the existing sea port to allow bigger vessels to berth.

Ministry of Transport – through the Ghana Ports and Harbours Authority

The Contracting Authority is finalizing evaluation of proposals. Negotiation on the draft contract will be held in October 2014. It is expected that the contract for the Transaction Advisor will be signed within the 4th quarter of 2014.

Significant delays have occurred in the procurement of a Transaction Advisor – due to differences in procedures of the Contracting Authority and the World Bank.

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4. ASUTSUARE BULK WATER PROJECT NO . 4

BRIEF DESCRIPTION

CONTRACTING AUTHORITY

PROGRESS REPORT

CHALLENGES

The project seeks to treat water from the Volta River at Asutsuare, and boost the water production for consumers within the Accra-Tema catchment.

Ministry of Water Resources, Works and Housing – through the Ghana Water Company Ltd

The Transaction Advisor is assisting the Ghana Water Company Ltd to negotiate on final terms prior to signing the contract.

A change in the management of the Contracting Authority has led to the stalling of the project. Efforts are underway to resolve the issues and move on with the project

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NO.

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5. KORLE-BU DIAGNOSTIC CENTRE PPP PROJECT BRIEF DESCRIPTION

CONTRACTING AUTHORITY

IFC has been engaged by the Korle-Bu Teaching Government of Ghana (GoG), Hospital and through the Ministry of Health Ministry of Health (MoH), to structure and implement a public private partnership (PPP) for a Diagnostic Centre providing both laboratory and imaging services at Korle Bu Teaching Hospital (KBTH).

PROGRESS REPORT

CHALLENGES

IFC team submitted The Project is ongoing their Feasibility with little or no Report on June 2014. hitches. In line with the national PPP policy, this Feasibility study must be reviewed and approved by the Cabinet based on recommendations by PPP Approval Committee

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PPPs in Infrastructure

THANK YOU! Ghana PPP Project Ministry of Finance Public Investment Division

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