US$23.37bn PPP projects in the pipeline – report

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Public-Private Partnership projects

The total value of domestic Public-Private Partnership projects in the pre-investment phase, numbering 27, reached an estimated US$23.37billion at the end of 2021, the maiden annual report on PPPs has shown.

During the pre-investment phase, project ideas are developed into an investment proposition, with analyses conducted to determine existing opportunities as well as viable alternatives.

Additionally, the report indicates that while 74 percent of projects in the pipeline are solicited, 26 percent are unsolicited. Again, 63 percent of the pipeline projects are in their feasibility stage.

Commenting on this, Minister of Finance Ken Ofori-Atta explained that the report is a requirement of Section 84 of the Public-Private Partnership Act, 2020 (Act 1039).

“To the investor community, lenders and other stakeholders, government has shown its commitment to the PPP agenda by promulgating the Public-Private Partnership Act, 2020 (Act 1039). Therefore, our collective duty is to establish Ghana as the continental investment hub in Africa,” he explained.

Specifically, a minimum of US$3billion in PPP investments is expected from 2021 to 2023. Government promulgated a PPP law on December 29, 2020 as one of the major initiatives in its stabilisation phase to facilitate the PPP investment inflows.

With the coming into force of Act 1039, all existing PPP projects in the pre-investment phase have been aligned with the PPP Act to ensure compliance.

Finance Minister Ken Ofori-Atta said in the report: “The focus of my ministry, going forward, will be to enhance the legal framework for PPPs by further facilitating development of the PPP regulations. Also, part of the agenda for my ministry for the year 2022 is the development of a medium-term plan with a credible pipeline of projects. This will be consistent with the Public Investment Plan, the Medium-Term Fiscal Framework and the National Infrastructure Plan, in accordance with my mandate under Section 25 of Act 1039”.

The plan when published is expected to incentivise and encourage private sector investors and lenders, among other stakeholders, to participate in Ghana’s PPP programme and projects.

On the international front, the minister mentioned that government will continue to work with ECOWAS to facilitate and promote regional and transnational infrastructure projects.

“Government will collaborate with other international institutions to facilitate learning and promote the PPP agenda. The added benefit of the African Continental Free Trade Area (AfCFTA) headquarters being in Ghana should create an even more robust and suitable investment ecosystem for all PPP actors.

“We are excited about the future of PPPs and investments in Ghana as we build on the now clear legal, institutional and policy framework that should provide the conducive and right business environment for investments through financing of PPP projects in Ghana,” the minister stated.

Investment Phase

PPP projects in the country are categorised into a Pre-Investment Phase – projects at the preparation stage; and an Investment Phase – projects at the implementation stage.

PPP projects at the Investment or Implementation phases number 13. The total initial investment for the 13 PPP projects is estimated at US$2.75billion.

The projects are made up of nine partnership projects with the Ghana Ports and Harbour Authority (GPHA); two partnership projects with the National Identification Authority (NIA); and one project each with the Ghana Shippers’ Authority (GSA) and Ghana Water Company Ltd. (GWCL), the report detailed.

According to the report, two out of the 13 PPP projects have challenges in reaching financial close.

 

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