Journalists
Journalists

On day one of normal business, Mrs Magdalene Apenteng, Director of Public Investment Division (PID) of MOF at a welcoming dinner, gave the sign posts of what PPP is and what the programme is not.

Journalists
Journalists

The objective of the MOF was to use the media as a spring board to create public awareness about PPP, and so for those who were not privy to some of the documents made available to the participants get some few notes right.

Privatisation and PPPs are both forms of private sector participation in infrastructure service delivery. However, in PPPs the public sector retains underlying ownership of the asset and accountability for service delivery, while physical asset provision and service delivery is provided by the private sector in line with the contract agreement.

Risks and rewards in a PPP are allocated and shared in line with the contract between the public and private sectors.

The government has over the years been having challenges with the provision and maintenance of infrastructure for accelerated development due to budgetary constraints.

It is estimated that addressing the country’s current infrastructure deficit would require sustained spending of at least $ 1.5 billion per annum over the next decade.

Government has therefore decided to encourage the use of PPP as a means of leveraging public and private sector resources and expertise to close the infrastructure gap and deliver efficient public infrastructure and services.

The use of PPPs is seen by government as a strategic mechanism for procuring, financing and delivering public infrastructure and related public services.

A national PPP policy has been developed and some of the country’s development partners, such as the World Bank (WB) and the UK Department for International Development, are supporting to prepare the legal framework for the proper implementation of the policy.

The development partners are also assisting the country to build the capacity of relevant bodies for the adoption of PPP as a major strategy to finance public infrastructure.

To this end, the WB is providing the country with $ 30 million from 2012-2016 for capacity building at various levels so that a more comprehensive programme could be put in place to fully implement PPP projects from 2017.
The MOF in 2010 established the PID Division as the PPP Advisory team to take the lead role in the programme.
One of the two units is the Project Finance and Analysis Unit, which has responsibilities for gate keeping and upstream investment appraisal.

The other key unit is the PPP Advisory Unit with technical expertise to support the Ministries, Departments and Agencies (MDAs) in the development and management of prospective PPP transactions that satisfy the country’s public investment priorities.

There is also the Strategic Projects Unit and the Public Entities Unit.

A PPP is a long-term contractual arrangement between a public entity and a private sector party, with clear agreement on shared objectives for the provision of public infrastructure and services traditionally provided by the public sector.

Usually, in a PPP arrangement, the private sector party performs part of or all of a government’s service delivery functions and assumes the associated risks for a significant period of time.

In return, the private sector partly receives a benefit, normally financial remuneration, according to predefined performance criteria.

The pipeline projects are Accra-Takoradi Highway Dualisation, Accra-Tema Motorway, Takoradi Port Rehabilitation and Expansion and Boankra Inland Port/Eastern Railway Line Project.

Others are Urology/Nephrology Centre of Excellence, Asutsuare Bulk Water Project, Martey-Tsuru Community Development, Model Markets, Kantamanto Market Project, Kwasiadwso Market Project, London Market Project, Makola Market Project and Mallam Atta Market.
The rest are Salaga Market Project, Development of Sports and Residential Facilities, Accra Plains Irrigation Project, Modern Pedestrian Foot Bridges and Development of Office Accommodation for Securities and Exchange Commission.

The contracting authorities of PPPs are the MDAs and Metropolitan, Municipal and District Assemblies (MMDAs) who are to identify or select a project they consider implementing.

The MDA/MMDA is responsible for managing the contract until the time of transfer to the government.
The good news is that the draft bill on PPP is with Cabinet to be passed on the Parliament for approval, however some of the guiding principles are value for money, risk allocation, ability to pay, local content and technology transfer, safeguarding public interest and consumer rights.

The clear objectives and output requirements are accountability, transparency and competition.

Source: GNA
A GNA feature by Nana Kodjo Jehu-Appiah

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