GHANA: PPP program support – PPP Framework Strengthening and pipeline development

Recognizing the private sector’s vital role in delivering critical infrastructure and vital services, the government of Ghana has taken steps to develop its PPP program. In 2011, it laid the groundwork by developing a PPP policy. Further steps included establishing sector-specific public investment units to appraise PPP projects, passing the 2020 PPP Law to provide a robust legal framework for the PPP program, and establishing an institutional structure for PPPs.

In support of the country’s infrastructure plan and to effectively implement Ghana’s PPP program, the government requested PPIAF’s support to systematically operationalize the new PPP Law and develop a strategy in line with the country’s Infrastructure Plan. Specifically, it needed assistance to prepare PPP regulations supporting the new law, build a sound pipeline of robust projects for PPP financing, and strengthen capacity for public entities to deliver PPPs.

PPIAF provided hands-on support to achieve several critical steps. These included supporting the development of instructions for Ghana’s PPP regulations, developing a strategic plan detailing the investment needs and public support required for 16 priority projects, providing training, recommending capacity building requirements, and incorporating guidance from the Climate Toolkit for Infrastructure PPPs into PPP regulations to ensure alignment with national and international climate commitments.

In addition, PPIAF worked with Ghana’s PPP Unit to develop wider PPP ecosystem improvements, including the preparation of PPP guidelines, a framework for the management of fiscal commitments and contingent liabilities, and implementation guidelines for the Project Development Facility (PDF) and Viability Gap Facility (VGF).

Given Ghana’s constrained fiscal space, projects with minimal viability gap requirements will be prioritized. Smaller projects could be bundled into larger packages to boost investor interest. Furthermore, the government may need to assess its capacity to support publicly funded projects; alternative financing sources may be required. Market sounding can help assess private sector appetite. Incorporating climate adaptation and resilience into infrastructure investments will also be critical.

Approved date2022-02-18
SectorMulti-sector (i.e. for infrastructure in general)
RegionSub-Saharan Africa