Ghana needs 2.5 billion dollars to close its infrastructure gap

Accra, Sept. 10, GNA - Ghana needs to source funds from

Public-Private Partnerships (PPPs) to close the country's medium-term

annual infrastructure gap estimated at 2.5 billion dollars, Mr. Fiifi Fiave

Kwetey, Deputy Minister of Finance and Economic Planning (MoFEP), said

on Thursday. He was speaking at the Second Annual National (PPPs) conference in

Accra to increase participants' understanding and awareness of the PPP

concept and how it could help in the rapid execution and growth of the

country's infrastructure and social needs. The conference, under the theme: "Public-Private Partnership for Social

Services and Infrastructure," was organized by the World Bank in

collaboration with the Department for International Development (DFID). "History has proven that PPPs, when managed properly, can help close

the infrastructure gap. Some international jurisdictions have used this

approach extensively and realized tremendous benefits," Mr Kwetey said.

Alluding to international examples of beneficiaries of such economic

partnerships, the Deputy Minister said countries such as Chile, USA and UK

had used the PPPs approach to fill the infrastructure gap in their respective

countries adding that Ghana needed to adopt and implement the concept. Mr. Kwetey said government had identified the bigger role the PPPs

played in infrastructure and service delivery in the country as well as in

accelerating its socio-economic development. "It is time to tap into the wealth of experience, knowledge and ready

capital accumulated by those in the private sector," he said. Mr. Kwetey called for political and regulatory mechanisms in order to

effectively implement the PPPs concept in the country and stressed that

policy development and stakeholder involvement was critical to the success

of the concept. "Information should be shared at all levels and maximum focus should be

maintained on institutional strengthening of the respective entities. This

requires capacity building for civil servants in the appropriate framework and

design of PPPs as well as adequate support for improving procurement

capacity," he said. Mr. Kwetey announced that the Ministry was putting in place structures to

support a PPP take-off in the country at the national and local levels. He said a Project and Financial Analysis Unit had been established in the

sector as an advisory unit within the Ministry, to assess and monitor

investment projects as well as taking on the responsibility of PPP policy and

its implementation within government. Mr John Dramani Mahama, Vice President, in a speech read on his behalf,

noted that a growing economy, clean environment and strong prosperous

communities were three areas of national importance that required strategic

investment needed to build a strong economic foundation for the country. He said government was considering projects to be undertaken under the

PPP framework such as intercity highways, rehabilitation of the rail network,

development of educational facilities as well as provision of health and social

services to create a Ghanaian infrastructure advantage. "The transition from direct public investment to PPPs requires the

development of new attitudes. We need to modernize our traditional way of

developing infrastructure and welcome the private sector as partners in

development," he said.