2012年-世界发展银行全球_Assessment_of_the_Viability_of_PPPs_and_Sub-national_Lending_in_Ghana_35页_962kb

Summary of the Assessment of the Viability of PPPs and Sub-National Lending in Ghana

Core Content

This document presents an assessment of the feasibility of Public-Private Partnerships (PPPs) and sub-national lending in Ghana, conducted by a World Bank Mission in early 2012. The assessment is part of the PPIAF-SNTA program, which aims to help sub-national entities access market-based finance without sovereign guarantees. The goal is to identify potential infrastructure investments that could be supported by the IFC sub-national window, including non-sovereign loans, equity, and bank guarantees.

Main Objectives

• To evaluate the legal and practical feasibility of sub-national participation in PPPs.
• To assess the current structure and capacity of local governments (MMDAs) to initiate and implement infrastructure projects.
• To analyze the financial systems and legal frameworks that govern non-sovereign lending and municipal financing in Ghana.
• To identify potential infrastructure investments and recommend a path forward for the Government of Ghana (GOG) and the International Finance Corporation (IFC).

Key Information

1. Sub-National Entities in Ghana

• Ghana is divided into 170 District Assemblies (DAs), including:
  • 6 Metropolitan Assemblies (MAs)
  • 24 Municipal Assemblies
  • 124 District Assemblies
• DAs are body corporate entities with perpetual succession and a common seal.
• They have the authority to:
  • Formulate and execute development plans
  • Levy and collect taxes, rates, duties, and fees
  • Acquire and dispose of property
  • Enter into contracts and financial arrangements

2. Role of the Government of Ghana (GOG)

• The GOG has implemented a decentralization policy (Act 462, 1993) to transfer functions and responsibilities to local governments.
• The National Development Planning Commission (NDPC) coordinates the national planning system and advises the President on development policies.
• The District Assemblies Common Fund (DACF) is a key mechanism for transferring financial resources to local governments, with at least 5% of GOG's current revenue allocated annually.

3. Legal and Financial Framework

• The Financial Administration Act (2003) governs the use of public funds, including the Consolidated Fund and Contingency Fund.
• All loans or financial arrangements involving GOG require parliamentary approval and sovereign guarantees unless the loan is below GHC$20 million and does not require a guarantee.
• State-Owned Enterprises (SOEs) where the GOG owns a minority stake are treated as commercial entities, and their financial obligations are not sovereign guaranteed.

4. Municipal Authorities and Sub-National Entities

• Accra Metropolitan Assembly (AMA): Has a population of about 3 million and engages with local communities and NGOs for small-scale infrastructure projects.
• Sekondi-Takoradi Metropolitan Assembly (STMA): Faces weak infrastructure and rapid urban sprawl. It has initiated joint ventures with private companies for projects such as landfill and market development.
• Tema Development Corporation (TDC): A state entity responsible for the development of Tema Township. It has 63 square miles of land and operates under a 60-year leasehold basis. It is currently reviewing its master plan for development.

5. Challenges and Opportunities

• Local governments face challenges in generating revenue and managing financial resources due to legal restrictions and under-investment in infrastructure.
• The decentralization policy aims to empower local governments to initiate infrastructure projects, but implementation has been limited.
• There is a need for:
  • Strengthening local government capacity in project planning and execution.
  • Improving tax collection systems to ensure financial sustainability.
  • Revising tariffs, rates, and duties to increase revenue and support development.
  • Enhancing transparency and accountability in the use of DACF funds.

Key Recommendations

• The GOG should provide flexibility in the guidelines for the use of DACF funds to promote infrastructure development.
• Local governments need to build internal capacity in planning, project structuring, and financial management.
• The legal framework should be updated to support non-sovereign lending and encourage private sector participation in infrastructure projects.
• A clear legal and institutional framework is needed to facilitate PPPs and ensure that private sector involvement is structured and effective.

Conclusion

The assessment highlights the potential for sub-national entities in Ghana to engage in infrastructure development through PPPs and non-sovereign financing. It underscores the importance of improving local government capacity, streamlining financial mechanisms, and creating a supportive legal environment to enable sustainable and efficient project implementation. The findings aim to guide the GOG and IFC in identifying viable projects and developing a strategy for their support.