Ghana: unsolicited PPP proposals
- Law
- Public Private Partnership Act, 2020 (Act 1039), version of 29 December 2020 1
- Key sections
- Sections 54 and 55 1
- Where to submit
- Contracting authority, with a copy to the PPP Office 1
- Proponent advantage
- Right to match the winning bid in open bidding 1
- Fee paid by a winning bidder who is not the proponent
- Not more than 2 per cent of capital cost, at financial close 1
- Viability gap funding
- Not available to unsolicited proposals 1
- Cabinet approval threshold
- Estimated capital cost above the cedi equivalent of US$200 million 1
The law and the institutions
The Public Private Partnership Act, 2020 is Act 1039 of Ghana. The GhaLII version is dated 29 December 2020 1. A World Bank country profile updated on 1 February 2023 lists the Act with the National Policy on PPP of June 2011 as Ghana's main PPP texts 3.
The Minister responsible for Finance chairs the Public Private Partnership Committee under sections 19 to 22. Members include the Attorney-General, the Minister for Trade and Industry and the heads of the National Development Planning Commission, the Ghana Investment Promotion Centre and the Public Procurement Authority. The Committee meets at least once every two months 1.
The PPP Office sits in the division of the Ministry responsible for public investments and assets. It serves as the Committee secretariat, registers projects and manages the Project Development Facility and the Viability Gap Facility 1.
Conditions for an unsolicited proposal
Section 54 defines an unsolicited proposal as a proposal by a private party to undertake a partnership project, submitted on its own initiative and not in response to a request from a contracting authority 1.
- The project is not in the contracting authority's Medium Term Development Plan and has not been considered for its PPP pipeline 1
- The proposal shows innovation and does not place onerous conditions on Government 1
- It is consistent with the constitutional development programme, the National Medium Term Development Policy Framework or the National Infrastructure Plan 1
- It is economically and financially viable, offers value for money, is affordable and needs no viability gap funding or tax exemptions 1
Review and registration
The private party submits an initial business case and supporting documents to the contracting authority, with a copy to the PPP Office, for preliminary review. If the authority rejects the proposal it must say so in writing 1.
If the authority decides to consider or promote the proposal, it notifies the PPP Office with the initial business case and a review report giving its reasons. The PPP Office registers the project. Registration does not identify the proponent, commit the authority to the project or grant exclusivity 1.
The proponent prepares the feasibility study at no cost to the authority. The authority and the appraising authority appraise it and send it to the PPP Office for the Committee 1. Correspondence does not oblige the authority, and a no-claim relationship applies 1.
Procurement, matching and costs
The 2 per cent payment goes toward appraisal costs and the proponent's project development costs 1. A proponent declared preferred bidder directly receives a defined return and must use an open book method. The Act does not set the return 1.
Section 82(7) says the Viability Gap Facility shall not be applied to an unsolicited proposal 1. Intellectual property in a proposal is protected under Ghanaian law. The holder may waive that protection in writing 1.
| Route | What the Act says | Section |
|---|---|---|
| Open bidding 1 | After Committee approval of the feasibility study, the authority may run an open bidding process 1 | 55(17) 1 |
| Right to match 1 | If the proponent does not win, it may match the winning bid to become preferred bidder 1 | 55(18) 1 |
| Fee on another winner 1 | A preferred bidder that is not the proponent pays not more than 2 per cent of capital cost to the PPP Office at financial close 1 | 55(19) 1 |
| Direct declaration 1 | The authority may declare the proponent preferred bidder with prior Committee approval and stated grounds 1 | 55(20) to 55(22) 1 |
Approvals and past experience
The First Schedule sets approval levels. Cabinet approves projects with an estimated capital cost above the cedi equivalent of US$200 million. The PPP Committee approves projects at or below that level. Parliament approves projects that need approval under articles 174 or 181 of the Constitution, whatever their cost 1.
A World Bank and PPIAF report of July 2017 cites Ghana's Accra-Kumasi Highway unsolicited proposal as facing delays of more than 11 years. The report predates Act 1039 2.
Common questions
Can a private company propose a PPP project in Ghana?
Yes. Sections 54 and 55 of Act 1039 allow unsolicited proposals that meet set conditions 1.
Does the proponent get a right to match in Ghana?
Yes. If it does not win the open bidding it may match the winning bid to become preferred bidder 1.
Can an unsolicited proposal get viability gap funding in Ghana?
No. Section 82(7) bars the Viability Gap Facility for unsolicited proposals 1.
Who approves large PPP projects in Ghana?
Cabinet approves projects above the cedi equivalent of US$200 million 1.
Rules and fees change. Check the official site linked above before you apply or pay. Spotted an error? Email [email protected] with the official link.
Sources
- GhaLII: Public Private Partnership Act, 2020 (Act 1039), version of 29 December 2020
- World Bank and PPIAF: Policy Guidelines for Managing Unsolicited Proposals in Infrastructure Projects, Volume I (July 2017)
- World Bank PPP Resource Center: PPP Country Profile, Ghana (1 February 2023)
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