Ghana - Public Financial Management and Private Sector Competitiveness Support Programme

Ghana - Public Financial Management and Private Sector Competitiveness Support Programme - Phase II

Project Summary

Approval Date	16 Dec 2016
Signature Date	10 Feb 2017
Planned Completion Date	30 Sep 2017
Last Disbursement Planned Date	31 Dec 2017
Sovereign / Non-Sovereign	Sovereign
Sector	Multi-Sector
DAC Sector Code	15124
Commitment	U.A 35,000,000
Status	Completion

Project General Description

The proposed intervention is an ADF loan of thirty-five million Units of Account (UA 35 million) to the Republic of Ghana to finance the second phase of the Public Financial Management and Private Sector Competitiveness Support Programme (PFMPSCSP II). This will allow for the strengthening of fiscal consolidation, deepening of PFM reforms, and improving the efficiency and competitiveness of the private sector. Like the first operation, PFMPSCSP II will be a single tranche. Consistent with the Bank’s Policy on Program Based Operations (PBOs), the disbursement of the proceeds of the first phase in the programmatic series (UA40.00 million) was effected against the achievement of a set of prior actions for 2015. In addition, the PFMPSCSP included indicative triggers for the second phase (PFMPSCSP II) in 2016, thereby providing predictable financing for the Government of Ghana (GOG) and supporting a medium-term reform platform for policy dialogue. The PFMPSCSP II has the same Components as Phase I of the operation, namely (i) Strengthening Fiscal Consolidation; (ii) Deepening PFM Reforms; and (iii) Enhancing Efficiency and Competitiveness of the Private Sector. These three components are complementary and mutually reinforcing in that fiscal consolidation will contribute to reduced Government indebtedness and lower cost of money; while PFM reforms will lead to efficiency in government operations and contribute to fiscal consolidation.

Project Objectives

The goal of the PFMPSCSP is to support the government’s medium-term development agenda of building a strong foundation for inclusive and self-reliant economic growth. Consistent with this goal, the operational objective of the 2016 program is to further strengthen fiscal consolidation and PFM reforms in order to restore macroeconomic stability, and enhance private sector-led competitiveness through improved access to electricity and SMEs’ access to finance.

Beneficiaries

The beneficiaries of the program remain the same as in PFMPSCSP. The direct beneficiaries are key public institutions responsible for PFM in Ghana, and agencies responsible for the delivery of electricity. The Ghanaian people will benefit from the expanded fiscal space that is being created by the fiscal consolidation reforms, as more resources would be available to fund pro-poor expenditures and basic social services. The private sector too will benefit from reliable and affordable electricity, improved access to finance, especially by SMEs including women-owned enterprises, as well as from more transparent and efficient PFM system, especially relating to procurement practices.

Participating Organization

Funding

African Development Fund

Implementing

MINISTRY OF FINANCE AND ECONOMIC PLANNING

Implementing

Ministry of Finance

Information

IATI identifier	46002-P-GH-KA0-006
Last Update	01 Feb 2023

Export

Contact Details

Name	LUMBILA Kevin Numbi
Email	k.lumbila@afdb.org

Geographic Location

Country	Ghana

Coordinates	Location Name
5.55602 -0.1969	Accra

Project Classification

Finance Type	Aid Loan Excluding Debt Reorganisation
Flow Type	ODA
Aid Type	General Budget Support

Commitments

U.A 35,000,000

African Development Fund

U.A 35,000,000

Disbursements

Repayments (Interest & Loan)

Document Type	Language	Document
Evaluation Report	en	PN10780 SR EN
Project Completion Report	en	PR10863 SR EN
Appraisal report	fr	Ghana- RE- Approuvé-Programme d appui à la gestion des finances publiques et à la compétitivité du secteur privé deuxième phase PFMPSCSP-II
Appraisal report	en	Ghana-AR- Approved - The Public Financial Management

Indicator	Indicator Measure	Target Year	Target Value	Actual Year	Actual Value
Domestic Revenue/GDP ratio	%	2016	19,2	2018	19,2
Expenditure/GDP ratio	%	2016	22,7	2018	25,2
Overall fiscal balance/GDP ratio	%	2016	-3,5	2018	-5,9
Wage bill (total non-interest recurrent expenditures)	%	2016	52	2018	57,9
Aggregate expenditure outturn compared to original approved budget	%	2016	30	2018	35,1
Multi-year perspective in fiscal planning, expenditure policy and budgeting	None	2016	Pilot integration (and extended to key MDA) of MTFF and MTEF with Hyperion Budget Preparation System launched	2018	The Piloting of the integration (and extension to key MDA) of the MTFF and MTEF with Hyperion Budget Preparation System have been launched
Global Competitiveness Index – rank	Number	2016	110	2018	111
Quality of electricity supply – rank	Number	2016	105	2018	111
Inflation, annual % change – rank	Number	2016	90	2018	132
Deployment of the Total Revenue Integrated Processing System (TRIPS)	None	2016	12 offices covered by TRIPS	2018	45 offices covered by TRIPS
Extending GIFMIS coverage to the management of Internally Generated Funds (IGFs) and Statutory Funds (SFs)	None	2016	Seven IGFs are covered in 2016, all the 57 IGFs and 6 SFs covered	2018	All IGFs are now covered by the GIFMIS
Implementation of on-lending Policy in line with the Debt Strategy	None	2016	Implementation of the 2016-18 Medium-Term Debt Management Strategy	2018	The 2016-18 Medium-Term Debt Management Strategy (2017), which is a 3-year rolling debt management strategy is already being implemented
Implementing HR (cleaning up) Audit recommendations	None	2016	HR Audit recommendations implemented	2018	This has been done and there is a payroll audit that is on-going. Every employee has to be verified under this audit
Integrating Payroll to GIFMIS financials; GIFMIS HRMIS and GIFMIS Hyperion, to permit exercising budgetary control on payroll	None	2016	Payroll, GIFMIS financials; GIFMIS HRMIS and GIFMIS Hyperion are integrated	2018	Hyperion and Financials are fully integrated. They are talking to each other. Integration between HRMIS and Payroll is done and is seamless. Payroll and financials have been integrated
Weaning off of 9 additional agencies from government payroll	None	2016	Total of 12 public agencies (including 3 that were already weaned off as at 2016) removed from government payroll	2018	6 public agencies have been waned off. Those waned off include, DVLA, Securities and Exchange Commission, Energy Commission, Data Protection Commission, Environmental Protection Agency, and Gaming Commission
Implementation of ex-ante control system by extending GIFMIS coverage to all MDAs	None	2016	Implementation of ex-ante control system by extending GIFMIS coverage to all MDAs	2018	All MMDAs, including the 216 District Assemblies, are now covered by the GIFMIS since the first quarter of 2018
Submission of the Procurement Regulation to Parliament	None	2016	The draft Procurement Regulation by Cabinet and submission to Parliament	2018	The draft regulations have been finalized but is yet to be presented to Parliament
Dissemination of the contract management manual to stakeholders	None	2016	The contract management manual is enforced	2018	Revised Contract Management Manuals for Goods, Works, Consultancy and Technical Services has been completed. The dissemination will commence in July 2018
Production of an annual Citizen Budget in local languages	None	2016	Annual Citizen Budget in local languages published	2018	Annual Citizen Budget has been published in seven (7) local languages
Adoption of the prioritized Cash Water Fall arrangement for electricity revenue sharing among power sector SOEs	None	2016	Implementation of the prioritized Cash Water Fall arrangement for electricity revenue sharing among power sector SOEs	2018	Drafting of four Agreements have been finalized. Paying Bank is yet to be appointed. Request for Expression of Interest for Consulting Services (Trustee/Administrator) for the Implementatio n of the Cash Waterfall Mechanism was recently launched with closing date of 24th January 2018
Listing at least 8 SME on the Alternative Stock Exchange (GAX)	None	2016	A total of 8 SME on the Alternative Stock Exchange are listed on the GAX	2018	8 SMEs were listed on the Alternative Stock Exchange (GAX) as at the end of 2017