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A World Bank Study
Figure 4.1 The PPP Approval Process in Accordance with the PPP Policy Contracting Authority (CA)
MoFEP PID-PAU or PFA
Sector Minister
Prepare PreFeasibility Study (PFS)
Assess and certify
Approves/ Rejects (Approval I)
Prepare Feasibility Study (FS)
Recommend for approval/rejection – if P2 or P3 Project; Approves/Rejects – if P1 project (Approval II)
Prepares Proc. Docs. & draft PPP Agreement/ Concession
Approves /Rejects Proc. Docs. (Approval IIIA)
Conduct tender process and selects the Winning Bidder
Assess & recommend for approval – if P2 or P3 project; OR Approve if P1 project (Approval IIIB)
Finalize “execution copy” of contract
Approves/Rejects contract – if P1 (Approval IV)
PPP AC
Cabinet
Approves/ Rejects – if P2 project (Approval II)
Approves/ Rejects – if P3 project (Approval II)
Approves/ Rejects Procurement – if P2 project (Approval IIIB)
Approves/ Rejects Procurement – if P3 project (Approval IIIB)
Approves/ Rejects Contract – if P2 (Approval IV)
Approves/ Rejects contract – if P3 (Approval IV)
Parliament
Identify, screen as PPP and prioritize project
Approves/ Rejects if PPP require GoG to comply with Article 174 and 181 of the Constitution and/or if projects > GHC 50 mill
Note: Project approval breakdown as per the PPP Policy: P1: if Project Cost < GHC 2 million; P2: if Project Cost > GHC 2 million & < GHC 50 million; & P3: if Project Cost > GHC 50 million; AC = Approval Committee; GHC = Ghanaian Cedi; GoG = Government of Ghana; PAU = Project Advisory Unit; PFA = Project and Financial Analysis Unit; PID = Public Investment Division; PPP = public-private partnership.
overall required government support—that is, any subsidy that the GoG may need to pay—and should identify major project risks. • This assessment develops through the FS, which should include developing the PPP structure in sufficient detail to also estimate the cost of the resultant FCs (as described further in chapter 4). At this stage, an Fiscal Commitment Technical Committee (FCTC) review should be required, and a report on the FCTC analysis and recommendations provided to the relevant approving body.