Ghana Rising: Sustainable Infrastructure Post COVID-19 Presentation for 2021 SDG Investment Fair 1 Acknowledgements Organizations to acknowledge: Logos to Include: 1. Technical Committee on Pipeline of Bankable Projects 1. Ghana Coat of Arms a. Ministry of Finance 2. NDPC b. National Development Planning Commission 3. GIPC c. Ghana Investment Promotion Centre 4. UNOPS d. United Nations Office for Project Services 5. UN DESA 6. University of Oxford 2. Ministries, Departments and Agencies that submitted Projects a. Ministry of Transport b. Ministry of Railways Development c. Ministry of Roads and Highways d. Ministry of Food and Agriculture e. Ministry of Environment, Science, Technology and Innovation f. Ministry of Energy g. Ministry of Sanitation and Water Resources h. Ministry of Works and Housing i. Ministry of Education j. Ministry of Health k. Ministry of Local Government and Rural Development/Department of Parks and Gardens l. Coastal Development Authority 3. United Nations a. UN Department of Economic and Social Affairs (UN DESA) b. UN Office for Project Services (UNOPS) c. UN Resident Coordinator (UNRC) 2 4. University of Oxford WHY INVEST IN GHANA GHANA MARKET OPPORTUNITY 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 4.2% in 2021 (IMF, 2021). Strategic entrypoint to the West African market Investor-friendly regulatory environment enables growing foreign direct investment which reached 2.65 GDP - 2020 (USD billion) 67.3 billion USD in 2019, 3.5% of GDP (GIPC, 2021). Projected GDP growth rate - 2021 4.2% GDP per capita - 2020 $2,190 Infrastructure remains key to attaining Ghana's development objectives. Currency Cedi Exchange Rate (value of $1USD) GHC 5.75 GHANA INFRASTRUCTURE FINANCING FOR THE SUSTAINABLE DEVELOPMENT GOALS 3 WHY INVEST IN GHANA GHANA POISED FOR GROWTH Ghana’s Infrastructure Plan sets the Foreign direct investment for infrastructure benchmark for the attainment of the SDGS needs to increase to close investment gap Build world-class, resilient infrastructure by 2047 An additional $45 billion of infrastructure investment to support Ghana's continued growth and is required by 2040 to close the infrastructure financing improve the quality of life of all Ghanaians. gap and achieve development outcomes (GIH, 2021). Data from Global Infrastructure Hub (GIH) Global Infrastructure Outlook GHANA INFRASTRUCTURE FINANCING FOR THE SUSTAINABLE DEVELOPMENT GOALS 4 WHY INVEST IN GHANA COMMITMENT TO SDGs, NDCs AND GENDER EQUALITY Ghana has placed infrastructure at the centre of its national development objectives 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. 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. 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. GHANA INFRASTRUCTURE FINANCING FOR THE SUSTAINABLE DEVELOPMENT GOALS 5 WHY INVEST IN GHANA SECTORAL OPPORTUNITIES FOR GROWTH A clear vision and strategy for the development of infrastructure in key sectors. Transportation Agriculture ● Roads ● Strengthen value chain ● Rail network ● Increase productivity ● Port and harbours ● Improve business linkages ● Inland marine transport ● Increase technological capacity ● Aviation system Energy Water, Wastewater and Sanitation ● Renewable Energy ● Piped drinking water for all ● Electricity ● Drainage and flood infrastructure ● Petroleum ● Integrated sanitation and waste management systems GHANA INFRASTRUCTURE FINANCING FOR THE SUSTAINABLE DEVELOPMENT GOALS 6 PRIORITY PROJECTS See brochure for full project pipeline TRANSPORTATION 2 feasibility stage TRANSPORTATION PRIORITY PROJECT Metro / Light Rail Transit System Project impacts towards the SDGs Location: Kumasi Inexpensive, safe form of transport reduces traffic jam and deaths due to traffic incidents. Subsector: Light Rail Public transport options reduce CO2 emissions from vehicles Enhanced satisfaction with Project Start: public transport safety, 2022 affordability, reliability and frequency. Operation Start: 2027 Investment Details: Project impacts towards Paris commitments Description: ● Scale up sustainable mass transportation A Light Rail Transit (LRT) network -Project Structure: BOT composed of seven corridors, located in ● Resilient infrastructure planning city-wide for CapEx: $5.8 Billion -Financing: Debt (70%), Equity improved movement of people and goods Kumasi, Ghana’s second largest city. Kumasi is a converging point of commercial (30%) activity and a key transportation hub. It’s -Concession Period: 30 years economic progress and rapid urbanization Potential impacts towards gender outcomes O&M: $137 Million have led to urban mobility challenges and -NPV: $404 million ● Build resilience for gender through equal employment opportunities in construction and O&M traffic congestion, which inhibit the city’s -FIRR: 15.6% ● socio-economic growth. The Kumasi LRT Accessible transport options enable women to Agency: Ministry of -B/C Ratio: 1.12 participate in public life and other activities. aims to strengthen the city’s transportation system. Railways Development Pre- Concept Feasibility Proposal Financed Feasibility Mr. Desmond Boateng, Chief Director, MoRD Environmental Social Pre-Feasibility Feasibility Cost Benefit Multi-Criteria Procurement Planning Impact Impact [email protected] +233-547-888-085 Study Study Analysis Analysis Plan Permissions Assessment Assessment 1 1 1 1 1 1 1 1 TRANSPORTATION PRIORITY PROJECT Central Spine Rail Line Project impacts towards the SDGs Location: Kumasi - Inexpensive, safe form of transport reduces traffic Paga jam and deaths due to traffic incidents. Subsector: Rail Improved trade by increased logistical efficiencies to reduce time and cost Enhanced satisfaction with Project Start: 2023 public transport safety, affordability, reliability and frequency. Operation Start: Description: 2029 Project impacts towards Paris commitments A rail line originating from the Central Investment Details: district of the City of Kumasi and routes ● Scale up sustainable mass transportation and through major cities and towns such as -Project Structure: PPP/BOT open up economic development between cities CapEx: $3.3 Billion and regions Mankranso, Bechem, Sunyani, Techiman, -Financing: Debt, Equity ● Resilient infrastructure planning between cities Kintampo, Buipe, Tamale, Walewale, -Concession Period: 30 years Bolgatanga, and Navrongo before -Annual Profit (2026): $361M terminating in Paga, near the Burkina O&M: $123 Million Potential impacts towards gender outcomes Faso border. The approximate length of -NPV: $945m (at 8% interest rate) ● Build resilience for gender through equal the Central Spine Line is 672km. The -FIRR (until 2055): 9.45% employment opportunities in construction and O&M project is expected to link Ghana to ● Inter-regional transport increases access to essential Burkina Faso and open up economic Agency: Ministry of -EIRR (until 2055): 13.2% services for rural women (i.e. healthcare, education) development. Railways Development Pre- Concept Feasibility Proposal Financed Feasibility Mr. Desmond Boateng, Chief Director, MoRD Environmental Social Pre-Feasibility Feasibility Cost Benefit Multi-Criteria Procurement Planning Impact Impact [email protected] +233-547-888-085 Study Study Analysis Analysis Plan Permissions Assessment Assessment 1 1 1 1 0 0 0 0 Overview of Project Digest - 32 Projects 1 Solid Waste Project 12 Transportation Projects 1 Education Project 2 Agriculture Projects 1 Health Project 1 Housing Project 4 Energy Projects 1 Green Infrastructure Project 7 Water, Wastewater, and Sanitation Projects 2 Industrial Projects 20 Concept | 4 Pre-Feasibility | 4 Feasibility | 3 Proposal 2 Priority | 18 Early Stage | 12 Future Projects 11 WHY INVEST IN GHANA IMPROVING BUSINESS CLIMATE Strengthened institutional capacity to plan and deliver PPPs PPP Advisory Unit established to manage the development and implementation of PPP projects. PPP policies adopted: ● National Policy on Public Private Partnerships (2011) ● PPP Bill (Drafted 2013) ● Ghana Investment Promotion Centre Act (2013) 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. Data from World Bank Benchmarking Infrastructure Development GHANA INFRASTRUCTURE FINANCING FOR THE SUSTAINABLE DEVELOPMENT GOALS 12 WHY INVEST IN GHANA INVESTOR ROAD MAP Ghana has established a clear roadmap for investors seeking to invest in the country, with 3 simple steps to ensure compliance: STEP 1: REGISTRATION WITH REGISTRAR GENERAL’S DEPARTMENT Incorporate a company at the Registrar General’s Department (RGD) and obtain: 1 ● Certificate of Incorporation and TIN number ● Company Regulation STEP 2: MINIMUM EQUITY CONTRIBUTION Comply with the minimum equity requirements either in cash or in capital goods relevant to the 2 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) 3 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. GHANA INFRASTRUCTURE FINANCING FOR THE SUSTAINABLE DEVELOPMENT GOALS 13 Thank you Q&A.