The First Global Public Private Partnership (PPP) Conference has ended with an assurance from government it will provide the right legal framework to enable the private sector to partner the state in provision of public infrastructure.
The event, an initiative of C-nergy Ghana -- an international consulting firm -- created a platform for local and foreign investors, insurance companies, pension fund managers and government agencies to interact and share ideas and experiences on developing and financing bankable PPP projects to bridge the country's infrastructure gap.
President John Mahama in a speech read on his behalf by Rashid Pelpuo, the Minister responsible for Public Private Partnership (PPP), said consultations with stakeholders have taken place on the draft PPP legislation, which will be laid before parliament shortly.
He said: “In the context of our win-win partnerships, investors must receive a fair return for their risk capital, and in return we expect know-how and technology transfer and a commitment to local employment."
Yusupha Crookes, the World Bank’s Country Director for Ghana, Liberia, and Sierra Leone, lauded Ghana for its economic growth over the years and called on government to leverage private capital through PPPs to bridge the country's infrastructure deficit.
The Ministry of Finance estimates that the country’s infrastructure needs require 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.
Mr. Crookes assured of the World Bank's commitment to continue helping 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 are 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.
Participants at the conference spoke of the insightfulness and practicality of the main conference and the break-away sessions.
Mr. Peter Nii Odoi Charway -- Lead, Strategy and Business development, The Beige Group, which participated in the conference -- said: "I must commend the organisers for putting the programme together and bringing on-board a rich cast of facilitators".
He noted that: “The World Bank’s support becomes one source of financing for PPPs. But the question 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?
“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 to 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.
Speakers at the event included Dr. Kangsoo Kim, Director,Public and Private Infrastructure Management Centre (PIMAC), Korea; Kogan Pillay, Head, SADC PPP Network (3P Network); Marcel Van Den Broek, of Vandeneroek Consulting; and Dr. Alexander Budzier, of Oxford University.
The Global PPP Conference is an initiative of C-NERGY Ghana, the local subsidiary of investment advisory firm C-NERGY Global, and was held in Accra in partnership with the Ministry of Finance. The unique perspective the organisers brought to bear was the field trips to various PPP project sites in the country.
A Director of C-nergy Global Holdings, Michael Cobblah said the company stands ready to offer its services to ensure the smooth execution of PPP projects in the country.
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