An Accra-based lawyer and international expert on Public-Private Partnerships, David Ofosu-Dorte, Founder and Senior Partner, AB & David Law Ghana, has urged the government’s intent on using the Public Private Partnership (PPP) system of procurement to develop infrastructure projects to initiate the project early.
Delivering a keynote address at a PPP expert panel and stakeholder roundtable in Accra, Ofosu-Dorte explained that given the long duration involved in the development, financing, and delivery of the projects, such projects should be started as soon as practically possible to enable them to complete in good time.
To enable this, he recommended that political leaders and other policymakers involved in the development and implementation of PPP projects be educated about the processes involved.
The PPP Expert Panel and Roundtable event organised in Accra brought together some of the leading procurement experts in Ghana, industry professionals, policymakers, contractors, academics, and researchers to explore the underlying issues and propose solutions.
The event was organised by Project Excellence Ghana, a Ghanaian consulting firm, with support from UK-based consultants, Innovation Inc., with support from Anglia Ruskin University, UK. It was chaired by Surveyor Humprey Amegadoe, an Accra-based Quantity Surveying Consultant.
The ultimate aim of the event was to propose innovative strategies to increase the number of PPP projects that reach financial close by exploring the constraints to the implementation of PPP projects in Ghana. It was hoped that through the forum, innovative solutions would be identified to enable the increased adoption of PPPs in meeting the huge infrastructure deficit.
The event was organised in the context of significant challenges faced by successive governments in developing critical infrastructure and in the delivery of essential public services. Within the constraints of limited budget resources, the public sector alone can not meet the huge infrastructure gap through periodic budgetary allocations.
Ghana’s Ministry of Finance estimates that addressing Ghana‘s infrastructure deficit could require sustained spending of at least $1.5 billion per annum over at least 10 years. It is for this reason that the government of Ghana is encouraging the use of Public-Private Partnerships (PPP) as a means of leveraging public resources with private sector resources and expertise to close the infrastructure gap and deliver efficient public infrastructure.
Despite government intentions and programmes by the Ministry of Finance, backed by the establishment of the Public Investment Units (PIUs) in all ministries, very few successful PPP projects have taken off. Given the huge infrastructure gap and opportunities that developing new infrastructure can present for overall national development, innovation is needed to ensure greater interest amongst the private sector to participate in PPP schemes. The challenges that inhibit the successful implementation of PPPs need to be addressed if PPPs can become a major source of financing critical public infrastructure.
Giving the keynote address, Lawyer David Ofosu-Dorte acknowledged a lack of political will as a major constraint to the successful implementation of PPPs in Ghana. He recommended that governments should start PPP projects early in their tenure to give the best chances of completing them on time.
Also speaking at the event, Cynthia Ayebo Arthur, the Acting Director of the Public Investment and Asset Division (PIAD) at the Ministry of Finance, highlighted the key activities of her division to support the development and implementation of PPP projects. She identified inadequate levels of capacity amongst stakeholders, both from the public and private sectors, as a key challenge to the successful implementation of PPPs. Whilst her outfit had been involved in building capacity in Public Investment Units (PIUs) within Ministries, Departments, and Agencies (MDAs)/Metropolitan, Municipal, and District Assembles (MMDAs), she called for an intensification of the capacity-building initiatives to cover all stakeholders in the PPP chain.
Magdalena Leisten Jahonssom, Infrastructure, and Climate Finance Adviser at the British High Commission, Accra, identified the high risks associated with infrastructure as a major challenge and suggested robust risk management programmes to mitigate the many associated risks. Her outfit, she said, was ready to partner efforts to develop the use of PPPs in providing infrastructure.
Participants agreed that there were significant available resources and financing globally for supporting PPP projects and that, with the appropriate supporting framework, PPPs could become a major source for the development of infrastructure in Ghana. It was therefore recommended that a nationwide capacity-building programme be deployed to develop and enhance the skills and expertise within the public and private sectors for the implementation of PPP projects. It was also suggested that local and international market-sounding events, including roadshows, be organized to showcase Ghana’s investment opportunities in PPPs and Ghana’s overall readiness to increase the deployment of PPPs as a major source of infrastructure development.