The World Bank Group says it stands ready to provide the financial support and requisite expertise to build the capacity of the local private sector to enable it actively engage in the provision of public infrastructure.
Though the country adopted a PPP policy in 2011 as a means to leverage private sector funds to address its infrastructure needs, the full participation of the local private sector has been hindered by its inability to mobilise the huge funds required for these big-ticket transactions.
Yusupha Crookes, the World Bank’s Country Director for Ghana, Liberia, and Sierra Leone, speaking to the B&FT on the sidelines of the First Global PPP Conference held in Accra said: “We will continue to help government to manage the process of bidding, seeking requests and proposals from the private sector. Beyond that, we are helping to build capacity to help the Public Investment Division (PID) strengthen its capacity to manage the PPP process.
“Where you have a process completed, a defined private sector investor identified and selected, they may need financing. We standing ready, through the World Bank Group, to provide whatever financial products those investors might need to realise their ability to partner government in developing any specific infrastructure they may have been selected for,†Mr. Crookes said.
The country’s infrastructure needs requires a minimum of US$1.5billion per annum until 2020 to address the shortfall. The deficit covers all the main infrastructure areas: roads, energy, water, aviation, housing, and ICT.
Government is currently seeking private investment to construct a dual 185-kilometre highway between Accra and Takoradi. The Ministry of Roads and Highways and the Ghana Highway Authority have engaged a transactional advisor to conduct a pre-feasibility study for the project.
The Accra-Tema motorway, which forms part of the Trans-West Africa Highway Corridor, is also targetted for development. The Boankra Inland Port, Eastern Railway Line Project, the establishment of a new airline, and the Asutsuare Bulk Water Project are other projects government is seeking private capital to execute.
Government has also established the Ghana Infrastructure Fund (GIF) to help address the shortfall.
However, Mr. Peter Nii Odoi Charway -- Lead, Strategy and Business development, The Beige Group who participated in the conference -- told the B&FT that: “The World Bank’s support becomes one source of financing for PPPs. But the questions is how well are we able to package theses projects and make them attractive to banking; for whichever sources of funding to say ‘Yes we are going to fund you’. These are some of the capacity building areas that the government will have to look at.
“PPP is a two-way thing. How ready is the private sector in Ghana? How well are we positioning the private sector in Ghana so it can benefit from the project?†he quizzed.
“We should bear in mind that the private sector in Ghana hasn’t had the benefit of time. The private sector in Ghana only started developing in the last ten years... But we are looking at huge contracts as in US$50million and over. What is the government doing to support the private sector? Can the public sector managing the process come to the private sector to ensure that the back and forth in the process is avoided?
The local content should be enshrined in the PPP law, as well as strengthening the Public Investment Division (PID) to enable it support the private sector.
The PID division of the Ministry of Finance (MoF) represents the main hub of the PPP programme in the country. The Division is spearheading development of PPPs and is responsible for developing the legal, institutional and regulatory framework for the PPP programme.
The draft PPP law is expected to be presented to Parliament for consideration by close of the year.
The Global PPP Conference is an initiative of C-NERGY Ghana, the local subsidiary of investment advisory firm C-NERGY Global, and was being held in partnership with the Ministry of Finance.
By Dominick Andoh | B&FT Online | Ghana
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