Ghana to undertake over $1.5b ambitious projects under public-private partnership policy

The Ghana government has identified five ambitious projects as initial infrastructural deliveries under the public-private partnership policy framework.

The projects, which could each cost not less than $300 million, include the building of a radiology and imaging services centre at the Korle Bu Teaching Hospital; rehabilitation and expansion of the Takoradi and Tema ports and the dualisation of the Accra-Takoradi road.

Also among the five turn-key projects, which are expected to commence in the first half of next year, are the construction and expansion of the Kotoka International Airport in Accra as well as the upgrading of the Kumasi, Tamale and Takoradi airports.

The Director of the Public Investment Division of the Ministry of Finance and Economic Planning, Mrs Magdalene Appenteng, explained to journalists in Accra that the PPP policy had created the Infrastructure Finance Facility which would have to be capitalised from various sources to help match funds that would flow in from the private sector.

Initially, the fund would be made up of about $80 million to $100 million equivalence in the local currency with funds coming in from development partners, government sources and bond issues.

The workshop was organised for financial and economic journalists to help explain the concept of PPPs and how far the government had led the process.

“We are looking at a mixed bag of financing options but we prefer long term funds that would be appropriately priced and easily accessible,” Mrs Appenteng explained.

The PID director said the Public-Private Partnership law, which was at the draft stage, would be passed by Parliament by the close of the year to give more confidence to the investor community.

Explaining how the PPPs was a clear departure from privatisation, she said the concept was a contractual arrangement between a public entity and a private sector party with clear agreements on objectives which are shared between the parties towards the provision of public infrastructure and services hitherto provided by the public sector.

This means that the private sector participant would receive benefits or financial remuneration usually derived from tariffs or user fees, government budgets, periodic payments or a combination of all.

She mentioned the accelerated delivery of needed infrastructure and services on time and within budget as some of the benefits that PPPs brought on board.

Source: Daily Graphic