1. Emmanuel K Asare
THE PRIVATE PUBLIC PARTNERSHIP IN AFRICA (GHANA)
The provision of public infrastructure and services is one of the prime mandates of Governments
all over the world. Infrastructure (roads, power, rail, water and sanitation, sea and airports,
among others) is a fundamental prerequisite for economic growth and development.
In addition, social and community infrastructure including education and health facilities, public
housing and buildings, social, cultural and commercial facilities and infrastructure are essential
in modern societies. All across the world studies have consistently shown the close relationship
between infrastructure and economic output.
In June 2011, the Ghana government approved a national policy on PPP, this was meant to
provide a legal frame work for the introduction of PPPs in the country. [2]
The PPP law in Ghana is in the offing which is in the draft stage, where it captures most of the
pressing needs to solve the implementation of PPPs right from initiation to execution, which
includes identifying of PPP projects, evaluation and selection, awarding of contracts, contractual
agreements, Feasibility Study ,roles, financials, etc [2]
The Bill: AN ACT to facilitate the development and implementation of Public Private
Partnership (PPP) projects in Ghana with the view to accelerating the delivery of public
infrastructure and related services through partnership arrangements between the public and
private sectors, establish institutional structures for the regulation of PPP arrangements, provide
the general principles for the identification, structuring, procurement, award, implementation and
management of PPPs and to provide for related matters [2]
The Ministry of finance and economic planning has been given the mandate to oversee project,
that is; to identify, assess, develop, implement and manage PPP transactions. [3]
In Ghana infrastructure deficits includes
General transportation sector 31%
General public administration sector 28%
Health 28%
General finance sector 10%
General water, sanitation and flood protection
sector
3%
Source www.worldbank.org[3]

2. Emmanuel K Asare
According to ratings by the World Bank group PPP in Africa and for that matter Ghana has not
really taken of properly even though the country is making some strides in making PPPs work.
The following rates shows how the country is performing with the implementation of PPPs
PPP Project in Ghana
Ghana has been involved in a number of PPP projects including transport (rail, road), Water
resources, Environment, consultancy and advisory services etc

3. Emmanuel K Asare
Reasons for PPP Involvement
Ghana government has made some headways in involving the private sector providing for some
infrastructural deficits in power generation (example the Sunon Asogli Power Plant, a typical
PPP at work, which produced fifteen per cent of the total electricity generated in the country
(200 megawatts of power) roads . the following are reasons why the country is involved in PPP.
1. Incentivizing the private sector to deliver projects on time and within budget
2. Imposing budgetary certainty by setting present and the future costs of infrastructre
projects over time
3. Utilizing PPPs as a way of developing local private sector capabilities through
joint ventures with large international firms, as well as sub-contracting opportunities for
local firms in areas such as civil works, electrical works, facilities management, security
services, cleaning services, maintenance services
4. Using PPPs as a way of gradually exposing state owned enterprises and government to
increasing levels of private sector participation (especially foreign) and structuring PPPs

4. Emmanuel K Asare
in a way so as to ensure transfer of skills leading to national champions that can run their
own operations professionally and eventually export their competencies by bidding for
projects/ joint ventures
5. Creating diversification in the economy by making the country more competitive in terms
of its facilitating infrastructure base as well as giving a boost to its business and industry
associated with infrastructure development (such as construction, equipment, support
services) [1]
There are a number of potential risks associated with Public Private Partnerships:
1. Development, bidding and ongoing costs in PPP projects are likely to be greater than for
traditional government procurement processes - the government should therefore
determine whether the greater costs involved are justified. A number of the PPP and
implementation units around the world have developed methods for analysing these costs
and looking at Value for Money.
2. There is a cost attached to debt – While private sector can make it easier to get finance,
finance will only be available where the operating cashflows of the project company are
expected to provide a return on investment (i.e., the cost has to be borne either by the
customers or the government through subsidies, etc.)
3. Some projects may be easier to finance than others (if there is proven technology
involved and/ or the extent of the private sectors obligations and liability is clearly
identifiable), some projects will generate revenue in local currency only (eg water
projects) while others (eg ports and airports) will provide currency in dollar or other
international currency and so constraints of local finance markets may have less impact
4. Some projects may be more politically or socially challenging to introduce and
implement than others - particularly if there is an existing public sector workforce that
fears being transferred to the private sector, if significant tariff increases are required to
make the project viable, if there are significant land or resettlement issues, etc. [1]
For example a water project involving the Ghana government and the private sector failed to
live up to expectation and therefore had to cancel. Also projects in the agriculture sector all
failed due to several ineeficiencies on the part of the government; this includes lack of
monitoring, no legal framework in place to deal with such situations and major problem is the
lack of political and social will on the part of government deal with such occurrences.
Sources
[3]http://www.worldbank.org/projects/P125595/ghana-ppp-project?lang=en
[2] http://www.mofep.gov.gh/sites/default/files/news/PPP_Law_Draft%20.pdf
[1]http://ppp.worldbank.org/public-private-partnership/overview/ppp-objectives