#1Ghana Rising: Sustainable Infrastructure Post COVID-19 Presentation for 2021 SDG Investment Fair SUSTAINABLE DEVELOPMENT GOALS#2GHANA MARKET OPPORTUNITY WHY INVEST IN GHANA I Africa's 8th largest economy GDP growth rate ranked 89th in the world and 18th in Africa. Despite the impacts of COVID-19, GDP is expected to grow 5.0% in 2021. Strategic entrypoint to the West African market Investor-friendly regulatory environment enables growing foreign direct investment which reached 2.65 billion USD, representing 3.5% of GDP in 2019 (GIPC, 2021). Key Economic Indicators 66.5 GDP-2020 (USD billion) Infrastructure remains key to attaining Ghana's development objectives. 5.0% Projected GDP growth rate - 2021 GDP per capita - 2020 2❘ GHANA INFRASTRUCTURE FINANCING FOR THE SUSTAINABLE DEVELOPMENT GOALS $2,190 Cedi Currency GHS 5.76 Exchange Rate (value of $1USD)#3GHANA POISED FOR GROWTH GHANA INFRASTRUCTURE PLAN (GIP) 2018-2047 HIGHLIGHTS Ghana's Infrastructure Plan sets the benchmark for the attainment of the SDGS. Build world-class, resilient infrastructure by 2047 to support Ghana's continued growth and improve the quality of life of all Ghanaians. GIP THE FUTURE OF INFRASTRUCTURE IN GHANA NATIONAL DEVELOPMENT PLANNING COMMISSION Foreign direct investment for infrastructure needs to increase to close investment gap An estimated $37.9 billion is required annually to fund Ghana's infrastructure needs by 2047 (GNIP, 2018). NOVEMBER 2019 3 | GHANA INFRASTRUCTURE FINANCING FOR THE SUSTAINABLE DEVELOPMENT GOALS 10 10 8 6 4 2 WHY INVEST IN GHANA Investment Trend and Needs ($ Billion) I 0 2010 2020 2030 2040 Investment Trend Investment Need to Achieve SDGs#4GHANA POISED FOR GROWTH Ghana has placed infrastructure at the centre of its national development objectives WHY INVEST IN GHANA SUSTAINABLE DEVELOPMENT GOALS Implementing the Ghana Infrastructure Plan and achieving the SDGs are one in the same Infrastructure is key to achieving the SDGs - it can influence 92% of the 169 SDG targets, across all 17 Goals. The SDGs are integrated into Ghana's development agenda. PARIS2015 UN CLIMATE CHANGE CONFERENCE Ghana's NDCs provide a framework for climate adaptation and mitigation Infrastructure plays a critical role in tackling climate change. Climate-proof infrastructure is central to Ghana's NDCs, in line with its commitment to tackle global climate change. COP21 CMP11 Infrastructure can promote gender equality and women empowerment Ghana's National Gender Policy recognises how a gender mainstreaming approach to infrastructure can address the gender-based barriers impeding women and girls. 4❘ GHANA INFRASTRUCTURE FINANCING FOR THE SUSTAINABLE DEVELOPMENT GOALS I#5SECTORAL OPPORTUNITIES FOR GROWTH WHY INVEST IN GHANA I A clear vision and strategy for the development of infrastructure in some key sectors. Transportation . Roads • Rail network Port and harbours • Inland water transport . Aviation system 5❘ GHANA INFRASTRUCTURE FINANCING FOR THE SUSTAINABLE DEVELOPMENT GOALS Energy • Renewable Energy • Electricity • Oil and Gas#6PROJECT DIGEST See brochure for comprehensive project pipeline information#7OVERVIEW OF PROJECT DIGEST - 16 PROJECTS 3 Feasibility | 4 Pre-Feasibility | 9 Concept 2 Priority | 14 Early Stage 10 Transportation า Projects 42 Energy Projects * 1 Green Infrastructure Project 1 Solid Waste Project ☐☐ 1 Education Project A 1 Housing Project 7 | GHANA INFRASTRUCTURE FINANCING FOR THE SUSTAINABLE DEVELOPMENT GOALS#8INFRASTRUCTURE PIPELINE - LONG LIST (16) Project Name Sector Project Name Sector Metro / Light Rail Transit System Transport Green Airports (G-Gap) Transport Central Spine Rail Line Transport Ghana Nuclear Power Plant Energy Trans-ECOWAS Railway Line Transport Petroleum Hub Energy Establishment of Home-Based Carrier Transport Plastic Waste Recycling Solid Waste Volta Lake Transport System Transport Hostels for Education Institutions Education Airport City II Transport Affordable Housing Project Housing Tamale Airport MRO Facility Transport Air Cargo Facility Transport Aburi Botanical Gardens Upgrade Keta Sea Port Green Infrastructure Transport 8❘ GHANA INFRASTRUCTURE FINANCING FOR THE SUSTAINABLE DEVELOPMENT GOALS#9PRIORITY PROJECTS#10TRANSPORTATION 2 Feasibility Projects ASECO7 279 3 2F2 ASEC07 279 3 2F2 MAX.GW TYPE MAX.CW CU.CAP ㄧㄚ MAX.GM TYPE MAX.CW CU.CAP ASECO7 279 ASEC07 279 2F2 F2 MAX.GW TYPE MAX.CV CU.CAP MAX. CH TYPE MAX.CH CU.CAP © Shutterstock ASEC07079 F2 MAX G TYPE MAX.CM CU.CAP ASECO779 MAX GM TYPE MAX.CH CU.CAP F2#11TRANSPORTATION - PRIORITY PROJECT Metro/Light Rail Transit System Description: A Light Rail Transit (LRT) network composed of seven corridors, located in Kumasi, Ghana's second largest city. Kumasi is a converging point of commercial activity and a key transportation hub. It's economic progress and rapid urbanization have led to urban mobility challenges and traffic congestion, which inhibit the city's socio- economic growth. The Kumasi LRT aims to strengthen the city's transportation system. • Kumasi Location: Kumasi Subsector: Light Rail Project Start: 2025 Investment Details: Project Structure: PPP Operation Start: 2025 Equity (30%) CapEx: $5.8 Billion Financing: Debt (70%), Concession Period: 30 years NPV: $404 Million Project impacts towards the SDGs SUSTAINABLE DEVELOPMENT GOALS 3 GOOD HEALTH AND WELL-BEING AFFORDABLE AND CLEAN ENERGY SUSTAINABLE CITIES AND COMMUNITIES Inexpensive, safe form of transport reduces traffic jam and deaths due to traffic incidents. Public transport options reduce CO2 emissions from vehicles Enhanced satisfaction with public transport safety, affordability, reliability and frequency. Project impacts towards Paris commitments PARIS2015 UN CLIMATE CHANGE CONFERENCE COP21 CMP11 Scale up sustainable mass transportation Resilient infrastructure planning city-wide for improved movement of people and goods Potential impacts towards gender outcomes Build resilience for gender through equal employment opportunities in construction and O&M Accessible transport options enable women to participate in public life and other activities. O&M: $137 Million FIRR: 15.6% Agency: Ministry of B/C Ratio: 1.12 Railways Development Mr. Desmond Boateng, Ag. Chief Director, MORD [email protected] | +233-547-888-085 Concept Pre- Feasibility Feasibility Proposal Financed Pre- Feasibility Feasibility Study Study 11 | GHANA INFRASTRUCTURE FINANCING FOR THE SUSTAINABLE DEVELOPMENT GOALS Environmen- tal Impact Assessment Social Impact Assessment Cost Multi- Procure- Planning Benefit Criteria ment Permis- Analysis Analysis Plan sions#12TRANSPORTATION - PRIORITY PROJECT Central Spine Rail Line Description: A rail line originating from the Central district of the City of Kumasi and routes through major cities and towns such as Mankranso, Bechem, Sunyani, Techiman, Kintampo, Buipe, Tamale, Walewale, Bolgatanga, and Navrongo before terminating in Paga, near the Burkina Faso border. The approximate length of the Central Spine Line is 672km. The project is expected to link Ghana to Burkina Faso and open up economic development. Paga • Kumasi Project impacts towards the SDGs SUSTAINABLE DEVELOPMENT GOALS GOOD HEALTH 3 AND WELL-BEING W INDUSTRY, INNOVATION Inexpensive, safe form of transport reduces traffic jam and deaths due to traffic incidents. ANDINFRASTRUCTURE Improved trade by increased logistical efficiencies to reduce time and cost. SUSTAINABLE CITIES AND COMMUNITIES AB Enhanced satisfaction with public transport safety, affordability, reliability and frequency. Project impacts towards Paris commitments Scale up sustainable mass transportation and open up economic development between cities and regions. PARIS2015 UN CLIMATE CHANGE CONFERENCE COP21 CMP11 Resilient infrastructure planning between cities. Location: Kumasi - Paga Subsector: Rail Project Start: 2023 Operation Start: 2029 CapEx: $3.3 Billion Investment Details: Project Structure: PPP/BOT Financing: Debt, Equity Concession Period: 30 years NPV: $945m (at 8% interest) FIRR (until 2055): 9.45% Potential impacts towards gender outcomes Build resilience for gender through equal employment opportunities in construction and O&M. Inter-regional transport increases access to essential services for rural women (i.e. healthcare, education). O&M: $123 Million EIRR (until 2055): 13.2% Agency: Ministry of Concept Railways Development Pre- Feasibility Feasibility Proposal Financed Mr. Desmond Boateng, Ag. Chief Director, MoRD [email protected] | +233-547-888-085 Pre- Feasibility Feasibility Study Study 12 | GHANA INFRASTRUCTURE FINANCING FOR THE SUSTAINABLE DEVELOPMENT GOALS Environmen- tal Impact Assessment Social Impact Assessment Procure- ment Planning Permis- sions Cost Multi- Benefit Criteria Analysis Analysis Plan#13IMPROVING BUSINESS CLIMATE WHY INVEST IN GHANA I Public Investment Management Framework: Public Financial Management (Public Investment Management) Regulation 2020, L.I 24 11 Public Private Partnership Act, 2020 (ACT 1039) Ghana Investment Promotion Centre Act, 2013 (Act 865) Ghana Infrastructure Investment Fund Act, 2014 (Act 877) World Bank Thematic Scores for Public- Private Partnerships in Ghana 48 Preparation 51 Contract Management Rising Ease of Doing Business Scores Ranking 118th in the world, and 3rd in West Africa, Ghana's ease of doing business score rose from 57 to 60 between 2015 and 2019. 61 13 | GHANA INFRASTRUCTURE FINANCING FOR THE SUSTAINABLE DEVELOPMENT GOALS 67 Procurement Unsolicited Proposals Ghana Score Regional Average#14INVESTOR ROAD MAP Ghana has established a clear roadmap for investors seeking to invest in the country, with 3 simple steps to ensure compliance: 1 STEP 1: REGISTRATION WITH REGISTRAR GENERAL'S DEPARTMENT 2 STEP 2: MINIMUM EQUITY CONTRIBUTION 3 WHY INVEST IN GHANA I Incorporate a company at the Registrar General's Department (RGD) and obtain the following: • Certificate of Incorporation and TIN number • Company Regulation Comply with the minimum equity requirements either in cash or in capital goods relevant to the investment; or a combination of both. See brochure for breakdown of minimum equity contributions. STEP 3: REGISTRATION WITH GHANA INVESTMENT PROMOTION CENTRE (GIPC) Register with the GIPC after paying relevant fees to complete the process. The procedure takes five (5) business days to complete, provided the registration forms and all supporting documents are in order. Requirement for Renewal: renewal with GIPC permitted every two (2) years. 14 | GHANA INFRASTRUCTURE FINANCING FOR THE SUSTAINABLE DEVELOPMENT GOALS#15ACKNOWLEDGEMENTS Technical Committee on Pipeline of Bankable Projects • Ministry of Finance • Ministry of Planning • National Development Planning Commission • Ghana Investment Promotion Centre • United Nations Office for Project Services United Nations • • UN Department of Economic and Social Affairs (UN DESA) • UN Office for Project Services (UNOPS) • United Nations Resident Coordinator Office (UNRCO) University of Oxford DEVELOPMEN NATIONAL DE PLANNING NG COMMISSION TOGETHER WE BUILD FREEDOM JUSTICE AND Republic Of Ghana • Ministries, Departments and Agencies that submitted Projects • • Ministry of Transport Ministry of Railways Development Ministry of Energy Ministry of Works and Housing • Ministry of Education Ministry of Local Government, Decentralisation and Rural Development/ Department of Parks and Gardens Coastal Development Authority GIPC UNOPS United Department of Economic and UNIVERSITY OF Nations Social Affairs OXFORD 15 | GHANA INFRASTRUCTURE FINANCING FOR THE SUSTAINABLE DEVELOPMENT GOALS#16THANK YOU Q&A