Question Tag: Technical skills transfer

i. Benefits the Government of Ghana can derive from Public Partnership

• It will provide better infrastructural solution than initiative that is wholly Public
• It will result in faster project completion and reduce delay on infrastructural project by including time to completion as a measure of performance.
• Greater efficiency of the Public Public Partnership will reduce government budget and budget deficit.
• High quality standard are better obtained and maintained throughout the life cycle of the project
• P3s that reduced costs potentially can lead to lower taxes since the government can have options of financing its expenditure than burdening its citizens through increase taxes
• PUPs allows 2 or more public or non-governmental organization to join forces and leverage their shared capacities
• PUPs allows multiple public organization to pool resources and technical expertise in achieving Government objective.

(1 mark for 1 point each = 5 marks)

ii. FIVE (5) guiding principles of any good arrangement you think the Government of Ghana should enter into Public Private Partnership Arrangement.

• Value for money: Value for money is paramount and PPPs should give greater value for money than the best realistic public sector project designed to achieve similar service outputs. Achieving value for money is a key requirement of government at all stages of a project’s development and procurement and is a combination of the service outcome to be delivered by the private sector, together with the degree of risk transfer and financial implications for government. Value for money is the driver for adopting the PPP approach, rather than capital scarcity or the balance sheet treatment.
• Risk allocation: An efficient risk allocation is vital in determining whether value for money can be achieved in PPP projects. GoG’s principle with regards to risk allocation shall be used to optimize, rather than maximize, the transfer of project risks to the private party. Risks will therefore be allocated to the party best able to control and manage them in such a manner that value for money is maximized. The allocation of risk will therefore determine the chosen method of private sector involvement and allocation of responsibilities, which shall take into account the protection of the public interest.
• Ability to Pay: End user ability to pay shall be a key consideration for all PPP projects. The PPP option must demonstrate long-term affordability to the public and overall Government budgetary sustainability, forward commitments in relation to public expenditure and the potential for returns on private sector investment, given other priorities and commitments.
• Local content & technology transfer: PPP projects shall be structured to encourage the maximum use of local content and technology transfer. As much as possible, the PPP arrangement shall facilitate the promotion of local industries and the private sector in Ghana.
• Safeguarding Public interest and consumer Rights: GoG is committed to ensuring that each PPP project shall have positive impact upon the public interest. The following principles shall be addressed in PPP transactions: Safeguards to users particularly vulnerable groups and Setting affordable user charges and tariff structures
• Environmental, climate and social safeguards: The Government shall ensure that PPP activities conform to the environmental laws of Ghana and the highest standards of environmental, climate and social safeguards.

(1 mark for 1 point each well explained = 5 marks)