Public Disclosure Authorized AFRICA Ghana Finance & Markets Global Practice IBRD/IDA Adaptable Program Loan FY 2012 Seq : 7 ARCHIVED on 27-Aug-2015 ISR20184 Implementing Agencies: Public Investment Department, Minstry of Finance Public Disclosure Authorized Key Dates Key Project Dates Board Approval date:27-mar-2012 Planned Mid Term Review Date:28-Feb-2015 Original Closing Date:31-Aug-2016 Project Development Objectives Effectiveness Date:26-Dec-2012 Actual Mid-Term Review Date:01-Jun-2015 Revised Closing Date:31-Aug-2016 Public Disclosure Authorized Project Development Objective (from Project Appraisal Document) The objective of this Adaptable Program Lending (APL) Phase I project is to improve the legislative, institutional, financial, fiduciary and technical framework to generate a pipeline of bankable PPP projects. The overall objective of this Adaptable Program Lending (APL) two-phased initiative is to assist the GoG to increase targeted infrastructure and other social service levels and qualityby mobilizing private sector participation through a public-private partnership (PPP) model. Leveraging greater volumes of private sector investment in infrastructure provision is a critical Program endobjective. The two-phased APL is designed to promote the creation of a sustainable and cost-effective PPP market in Ghana. Has the Project Development Objective been changed since Board Approval of the Project Objective? PHRPDODEL Components Public Disclosure Authorized Name Institutional, Fiduciary, Legislative and Financial Capacity Building:(Cost $10.00 M) PPP Pipeline Preparation and Transaction Advisory Support:(Cost $18.50 M) Project Management and Monitoring & Evaluation:(Cost $1.50 M) This component tab is not necessary since the project only has 3 components but we are unable to delete it. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory 9/1/2015 Page 1 of 11
Overall Risk Rating -- Substantial Implementation Status and Key Decisions This ISR is based on the Mid Term Review (MTR) Mission that took place in Accra on June 1-12, 2015. The mission noted that the PDO continues to be relevant to the Government's needs and there is a clear need for continuing to implement the ongoing PPP program in Ghana. Despite delays in implementation progress in the initial period, the Project has made significant implementation progress in the last 12 months. To this end, disbursements have increased from 21% of project proceeds in July 2014 to 33% in July 2015. In order to build on this momentum and achieve the full potential of the PPP Program, the MTR mission recommended to the Government that institutional arrangements at the central Ministry of Finance level need a higher profile and clout and more autonomy in human resources and procurement matters. The mission also stressed that there is need for regular monitoring of the PPP Program at the highest levels. 9/1/2015 Page 2 of 11
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Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- -- Substantial Macroeconomic -- -- Substantial Sector Strategies and Policies -- -- Moderate Technical Design of Project or Program -- -- Substantial Institutional Capacity for Implementation and Sustainability -- -- High Fiduciary -- -- Moderate Environment and Social -- -- Moderate Stakeholders -- -- Moderate Other -- -- -- Overall -- -- Substantial Results Project Development Objective Indicators PHINDPDOTBL PPP Law enacted (Text, Custom) Value The draft PPP law was submitted to Cabinet and has had an initial review by the relevant sub-committee. The comments presented by the sub-committee are currently being reviewed by MoFEP and the Attorney The initial draft PPP law has been revised following comments from Cabinet and submitted to Attorney General's (AG) Department for final drafting 9/1/2015 Page 4 of 11
General s office. Comments AG's office is currently on recess but will finalize the drafting soon after the recess. PHINDPDOTBL Associated PPP Regulations approved in accordance with PPP Law. (Text, Custom) Value As mentioned in the previous ISR, MoFEP has decided to develop the regulations following the passage of the PPP law given that a number of regulations will need to be developed under the law. The PIU has started the process of recruiting consultants to draft the regulations once the law is enacted. Municipal PPP Guidelines have been drafted under a PPIAF-funded NLTA (Role of PPPs in revenue collection in Municipalities). PHINDPDOTBL EOIs are issued to prospective sponsors\concessionaires for three PPP transactions. (Text, Custom) Value 0 Government is in various stages of the project cycle with their pipeline transactions. As mentioned in the previous ISR, this indicator will only be met following the completion of prefeasibility and full feasibility stages and Government approvals have been granted on the specific PPP projects. One Feasibility Study has been completed and four Pre-Feasibility studies are either partially or fully completed. Four transactions are in the procurement process of hiring Transaction Advisors. 3 9/1/2015 Page 5 of 11
Comments At least one EOI is expected to be issued in the next 12 months. Overall Comments The learning process for initiating the whole PPP Program has been steep, but a significant transactions pipeline has now been generated and there are a promising number of PPP transactions in the Feasibility and Pre-Feasibility stages, which is a significant movement towards progress on the EOI indicator. Progress on enacting the PPP Law is now at its final corner in the race (final drafting and presenting to Parliament). Intermediate Results Indicators PPP Bill submitted to Cabinet (Text, Custom) Value yes Date 26-Dec-2012 02-Jul-2014 30-Jun-2015 31-Aug-2016 Comments Cabinet provided comments on the draft Bill and these have been incorporated in a revised draft which is now with AG's Department for final drafting. Unsolicited Bid Guidelines for inclusion in PPP Regulations prepared and approved by the commitee (Text, Custom) Value Currently on hold Currently on hold Comments The guidelines have been issued but are not yet approved by the PPP Approval Committee. 9/1/2015 Page 6 of 11
MoU signed between MoFEP and line ministries (Number, Custom) Value 0.00 5.00 8.00 2.00 Establishment and operationalisation of PPP Approval Committee (Text, Custom) Value no Seven year bonds issued by Government of Ghana (Text, Custom) Value no This is no longer relevant and will be dropped as it was part of sub-component 1.5 that has now been restructured. Establishment and operationalisation of the VGS (Text, Custom) Value The draft contract for the VGF consultant has been approved by the World Bank, and should be signed by Dec 31, 2014. The VGS consultants started work in May 2015 and have submitted their inception report. The assignment is expected to be concluded by the end of October 2015, and the VGS framework is expected to be approved by the Approval Committee by the end of 2015. 9/1/2015 Page 7 of 11
Establishment and operationalisation of BOG unit to provide Apex role for FIL (Text, Custom) Value Procurement no longer needed given that the WB will no longer be supporting any APL phased projects Including the Ghana APL II, where a VGF and FIL would be supported. Also given that PPIAF and the WB will be supporting the design of the Ghana Infrastructure Fund, there is no need for an Apex/FIL BoG Advisor Activity has been dropped from the project given that there will be no APPL II funding any longer. Date 26-Dec-2012 22-Dec-2014 30-Jun-2015 -- Pre-feasibility studies completed (Number, Custom) Value 0.00 2.00 2.00 5.00 9/1/2015 Page 8 of 11
Full Feasibility studies completed (Number, Custom) Value 0.00 0.00 1.00 4.00 Line Agency nodal units established and operationalised for First Mover Transactions (Number, Custom) Value 0.00 8.00 8.00 2.00 First moving transactions meets criteria for funding in phase II (Number, Custom) Value 0.00 0.00 0.00 1.00 Complete Relevant Safeguards Government Reports for PPP Projects as outlined in the PPP policy (Number, Custom) Value 0.00 0.00 0.00 4.00 9/1/2015 Page 9 of 11
Draft Regulations submitted to Cabinet (/, Custom) Value N N N Y PPP Fiscal Commitment and Contingent Liability Framework established (Text, Custom) Value A Fiscal Commitments technical Committee has been established and has held two meetings, one in December 2013 and one on May 16, 2014. Date 26-Dec-2012 16-May-2014 30-Jun-2015 31-Aug-2016 Overall Comments The MTR has recommended a revision of the Results Framework (RF) to take into account the fact that there will be no APL II funding under the project and any activities associated with preparation for APL II funding are no longer relevant. Hence all results indicators associated with Bank of Ghana activities and issuance of bonds by GoG are also no longer relevant. In addition, the recent restructuring of the GIIF sub-component (sub-component 1.5) to fund the first year operation costs of GIIF also necessitates a revision of the RF. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P125595 IDA-50970 Effective XDR 19.40 19.40 0.00 6.37 13.03 33% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P125595 IDA-50970 Effective 27-Mar-2012 22-v-2012 26-Dec-2012 31-Aug-2016 31-Aug-2016 Cumulative Disbursements 9/1/2015 Page 10 of 11
Restructuring History Level 2 Approved on 09-Jul-2015 Related Project(s) There are no related projects. 9/1/2015 Page 11 of 11