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A World Bank Study
Table 3.1 Summary of FC Proposed Institutional Roles Entity
Role during PPP preparation/approval
Role during PPP implementation
Contracting Authority (CA)
– Identify and estimate cost of FC as part of project preparation (with support from specialist transaction advisors)
– Regularly obtain FC tracking info from PPP sponsor – Monitor and respond to FC-related project risks – Include FC payments in budget requests submitted to government
Ministry of Finance and Economic Planning: Public Investment Division Project Advisory Unit (PAU)
– Support and quality assure the above process – Help develop standard contractual clauses and other guidance material on FC
Project and Financial Analysis Unit (PFA)
– Coordinate assessment and approval of PPP, including FC – Act as secretariat for FCTC
– Oversee PPP monitoring undertaken by the CA – Feed updated FC estimates into reporting and budgeting
State-Owned Enterprise (SOE) Unit
– Assess and advise on SOE financial health and exposure to PPP commitments as member of FCTC for relevant projects
– Monitor SOE performance including for PPP contracts – review implications for GoG expenditure and the need for any budget transfers
Other Ministry of Finance and Economic Planning Divisions Debt Management Division (DMD)
– Assess and advise on FC liabilities from a liability management point of view as member of FCTC
– Monitor impact of PPP FCs (particularly contingent) on liability management – Incorporate updated FC estimates into debt analysis and reports
Budget Division (BD)
– Assess and advise on FC affordability from a budget priorities/constraints point of view, as member of FCTC
– Incorporate FC as needed into relevant reports – Allocate and release budget for direct payments and realized CL – Allocate contingency budget for CL obligations
Economic Research and Forecasting Division (ERFD)
– Assess and advise on PPP projects’ FC from an overall liability and macro management view point, as member of FCTC
– Where relevant, incorporate updated PPP liabilities in macro/ fiscal projections
Source: World Bank data. Note: CL = contingent liabilities; FC = fiscal commitments; FCTC = Fiscal Commitment Technical Committee; GoG = Government of Ghana; PPP = public-private partnership.
It is proposed that coordination of fiscal management of PPPs is facilitated by a Fiscal Commitment Technical Committee (FCTC). Membership of the FCTC will comprise representatives of all the MoFEP units and divisions with a role to play in managing PPP FCs, as listed below. The FCTC would aggregate feedback on the FCs under a proposed PPP into a single set of recommendations, to be submitted to the relevant PPP approving body for the project (as described further in chapter 4).