World Bank approves $30m interest-free credit to kick-start Ghana’s new Public Private Partnership project

The World Bank Board of Executive Directors on March 27, 2012 approved an International Development Association (IDA) interest free credit of $30 million to kick-start a new Public Private Partnership (PPP) centered on infrastructure development in Ghana, a statement by the multilateral institution has announced.

The Bank’s support is the first phase in a series set to close a critical funding gap and to leverage urgently needed private sector investment from 2012-2016, according to the statement.

Ghana’s PPP program with the World Bank will combine the skills and resources of both the public and private sectors.

The Ghanaian Government will benefit from the expertise of the private sector by making it easier for authorities to focus instead on policy, planning and regulation.  Meanwhile, private firms will take care of day-to-day operations of various tasks, allowing both the private and public sectors to better coordinate while working more efficiently, the Bank indicated.

Specifically, phase one of the PPP project for Ghana, the World Bank says, seeks to improve the legislative, institutional, financial, fiduciary and technical framework to generate a pipeline of bankable PPP projects.

“Ghana is an important partner of the World Bank and we are glad to be providing some of the funds needed to make this initiative possible. We do hope that the new program will help bring on board important private stakeholders to contribute to Ghana’s infrastructure development,” Mr  Yusupha B. Crookes, World Bank Country Director for Ghana, Liberia and Sierra Leone was quoted as saying.

Ghana’s Finance Minister, Dr. Kwabena Duffuor who welcomed the announcement said, according to the statement, “Our goal is to attract investors to Ghana’s rapidly growing economy, which we expect will do even better with the injection of additional technical and infrastructural support to the exports sector…  Public Private Partnerships are a cost effective way to stimulate the infrastructure needs for Ghanaian industry.  I am delighted that the World Bank is supporting us in this important endeavor.”

By Ekow Quandzie

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