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 A. PROJECT OBJECTIVES AND DESCRIPTION
 Summary of Project Scope and Objectives
1. The Project development objective is to attract a critical mass of export-oriented firms in Ghana to kick-start export-led growth as well as facilitate trade.
2. This would be achieved by creating an enabling environment to facilitate increased levels of private investment in Ghana, reducing the cost of doing business and providing the necessary infrastructure services. More specifically, the Project will modernize the front-line institutions/agencies that deal with investors by re-engineering them into trade facilitators; and provide off-site infrastructure for on-site facilities which are privately-developed and owned Free Trade Zone (FTZ) enclaves.
Detailed Project Description
3. The Project is designed to help remove the constraints to the development of trade and exports, and to attract foreign direct investments for industrial and infrastructure development.
The Project is an integral part of the Ghana Gateway Program, which is undertaking the foundation work for the realization of Ghana becoming a middle-income country by the year-2020, i.e., Ghana’s "Vision 2020". The Project will finance the following components.
Project Component 1 - Development of Geographically-sited EPZ
4. The Project would provide financing for the feasibility study of a railway corridor and marshaling yard, as well as feasibility studies, detailed engineering, construction and supervision of the off-site infrastructure for the Tema EPZ, including:
Construction of access road, side drainage and associated works;
Construction of water supply systems, wastewater disposable systems and off-site drainage systems; and
Supply and installation of electrical power and transformers.
5. During project preparation an environmental assessment was carried out and has provided government with an in-depth assessment of the Project impacts as well as an environmental mitigation plan. Project preparation, bidding and implementation therefore incorporate specific measures to avoid negative impacts, and to improve currently inadequate environmental conditions in the Project area, such as:
(a) Environmentally safe construction methods and techniques; (b) environmental and social criteria to avoid environmental degradation of the Project site; and (c) improvement of solid waste management in the final waste disposal sites in the TEMA municipality. The Project will finance costed mitigation and monitoring plans and an industrial risk contingency plan, all of which clearly identify the institutional arrangements for the execution of the respective plans.
6. Under this component the Project will also provide support for the construction of a container devanning area outside of the port and for the general improvement of seaport and airport operations. Upon completion of this component the infrastructure will be transferred to the respective utilities.
Project Component 2 - Capacity Building in Trade Facilitation
Customs Excise and Prevention Services
7. Under the Project, CEPS will develop and implement a far-reaching program of re-engineering its corporate structure and culture to become a trade facilitator. CEPS will implement a strategic business plan covering all required changes in regulations, operational procedures and human resources. A work program designed to achieve ISO 9000 certification of Ghana's Customs and Port Cargo Clearance Processes is expected to be put in place. Specific trade related processes and procedures would be re-engineered to bring the quality of custom services up to international standards. Special attention will be directed to:
(a) streamlining of processing and reduction of clearance time for both export and import cargo;
(b) Re-equipment and development of adequate information technology infrastructure; and (c) training on special procedures designed specifically for free zone enterprises in line with free zone regulation. The proposed Project would finance the modernization of customs administration and the implementation of CEPS’s strategic business plan covering changes in the regulatory, operational procedures and human resources.
Ghana Ports and Harbor Authority
8. Government has approved a policy to further improve the operation of the ports, which will reduce the cost of operations and shorten the turn-around time of ships. The strategic choice for effectively implementing this policy is through the increase of private sector participation in the operation of the ports.
9. Under the Project, GPHA will be converted into a "Landlord" Port Authority while the private sector will participate in port operations particularly container handling operations, dockyards, sites maintenance and services. The Project will provide technical expertise to build capacity in the GPHA to assume the role of a landlord structure with responsibility to regulate the participation of private sector in infrastructure investments and in operations of the ports. To enhance the capacity of the ports to take modern generation vessels, the Project will also finance the feasibility study for the dredging of Quay No. 2 as well as technical expertise for privately developed and managed Electronic Data Interface (EDI) for the major port users.
Ghana Civil Aviation Authority
10. Aviation plays a key role in supporting a high-growth, outwardly oriented development strategy. One of the key objectives of GOG’s Gateway Project is to develop a strategy of "liberalized skies policies" which implies, inter alia, an institutional reform of the GCAA. The reformed GCAA should have full charge of safety regulation; pilot, carrier and facility licensing; and air navigation and air traffic control. Airport operations and development should be under the control of an independent airport authority.
11. Under the Project and in tandem with the Public Enterprise and Privatization Technical Assistance Project (PEPTA), scenarios for the development of air transport that would achieve private participation in developing the airport facilities into a regional hub for passenger, cargo and express delivery services will be developed. In addition, the Project will provide support to develop a comprehensive and holistic aviation sector strategy, which will operationalize the liberalized skies policy adopted by the GOG.
12. The Project would help transform GIPC’s promotional strategy from a general approach to a specifically targeted promotional program. It will finance several campaigns of well target promotions directed to the firms and sectors pre-identified in the FDI demand study. Promotional efforts will be facilitated through improvements in, inter alia, the definition of service standards and progress monitoring indicators, staff training, private sector survey tools and other promotion activities for GIPC and GFZB. The Project would also finance the preparation and implementation of a strategy to develop backward linkages between foreign investors and local suppliers.
Trade facilitation by Ghana Immigration Services
13. The organizational audit carried out in April 1998, noted among others that the GIS is committed to carrying out its mandate, but is hampered by the lack of resources, a strategic vision and formal training program. The Project would therefore provide limited support to (i) prepare standard operating procedures (SOP); (ii) put in place technology infrastructure; and (iii) benchmark GIS processing of immigration functions.
Ghana Free Zones Board
14. The GFZB, which was established through the Free Zones Act of 1995, represents the principal catalyst for export-oriented industrial development in Ghana. The Board is charged with implementing the Ghana Free Zones Program, which combines both the enclave and single factory enterprise concept design to promote processing and manufacturing of goods through the establishment of Export Processing Zones (EPZs) and to encourage the development of commercial and service activities at its air and sea port areas.
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15. The Project will finance the implementation of the strategy and activities necessary to propel the Board into a proactive implementing organ for the Ghana Free Zones Program. These would include: (a) a well-targeted marketing plan (to complement GIPC’s promotional efforts) for attracting the free zone developers and enterprises as detailed in the recently completed FDI Demand Study; (b) design of the information systems architecture to provide the Board with an appropriate technological backbone to undertake all aspects of promotion and facilitation (e.g. investor tracking and investor/enterprises management functions; and (c) a comprehensive capacity building program aimed at improving service delivery within Board staff, both in terms of proactive promotion as well as investor hospitality and related facilitation functions.
16. The marketing plan for developer identification will be carried out with professional support. It will involve a two-prong process. The first prong will assist the current potential developer in addressing project-financing issues that may hamper the investment implementation process. The second prong will operate in tandem with the first and will take the form of an aggressive campaign to locate qualified developers using a combination of an International Competitive Bidding (ICB) process with a Direct Developer Identification (DDI) process. As part of its preparation, the GFZB will develop an "offer" document, which will fully disclose site features and advantages as well as delineate the criteria for the qualification of the developer. The GFZB expects to combine the invitation to tender with targeted marketing to overseas companies. The short list of companies from the universe of qualified developers will subsequently be invited to negotiate. The DDI process will be repeated a few times if previous efforts are unable to lead to the identification of qualified or interested prospects. The GOG and IDA have agreed during appraisal on an exit clause should a developer not be found at the end of a 24-month search period. The preferred developer is expected to bring anchor tenants, develop a minimum of 8,000 square meters of factory space within the first development phase or within a period of no longer than one year from ground-breaking.
Project management and Program Coordination
17. The Project would help develop the institutional capacity to better implement and Co-ordinate the Gateway Project. A Gateway Oversight Committee presided over H.E. the Vice-President and includes Ministers from relevant sectors including those from Trade and Industry; Roads and Transport; Finance; Interior, Communication, Works and Housing and National Security. It also includes representatives from the Private Sector. These are responsible for overseeing the Program Implementation. The Gateway Oversight Committee has created a Gateway Secretariat under the auspices of the Ministry of Trade and Industry, which is responsible for the day to day management, and coordination of the Gateway Program. The Secretariat reports to the Oversight Committee and is responsible for coordinating the respective sub-components of the Project to be executed by the relevant beneficiary agencies as well as the daily monitoring of the performance contracts between the Oversight Committee and the beneficiary agencies.
18. The following officers are to be appointed under the Project to enhance the supervisory management and delivery capacity of the Secretariat.
Procurement Specialist;
Infrastructure Co-ordinator;
Accountant; and
An Audit firm of international repute.
All these appointments are to be in accordance with IDA procedures.
19. The following Project Outputs and Monitorable Indicators have been set as benchmarks to guide Project Execution.
By the end of the Project, Ghana should emerge as the key and preferred investment destination into West Africa with cost of doing business brought to internationally best case levels. This must translate into the following Monitorable Indicators (among others) for:
A. GHANA PORTS & HARBOURS AUTHORITY
Cost of loading Input Containers are reduced from present level of US$168 to US$80 by end of 1999, and to international standards by end-2000.
Speed of unloading containers increased from gross 12 boxes per ship hour to 20 boxes per ship hour by end of 1999 and 24 boxes by year 2000.
Average dwell time for imported containers drop from 25 days in 1998 to 15 days by end 1999 and less than 7 days by year 2000.
GPHA is restructured into a Landlord Port and greater autonomy granted Ports of Tema and Takoradi by end-1999.
B. CUSTOMS, EXCISE AND PREVENTIVE SERVICES (CEPS)
Number of examinations at points of entry, of cargo and documents are reduced to one.
Cargo examination is reduced from 100% to 10% from statutory free goods, and 20% for all dutiable goods.
Number of overland customs (and other checkpoints on road are reduced to one for Togo; two for Republic of La Cote d’Ivoire; and two to Burkina Faso.
C. GHANA IMMIGRATION SERVICE
Security services at entry points consolidated into one (Immigration, Health, BNI) to ensure rapid clearance
Business tourist visas delivered within 48 hours at all Consular Missions abroad by year 2000.
Business and tourist visas issued on arrival upon payment of reasonable fees by end 1999.
100 Immigration Officers/Consuls trained in the Gateway concept by year 2000.
D. GHANA CIVIL AVIATION AUTHORITY
A future development scenario for the civil aviation sector, reflecting GOG Gateway priorities is adopted by 1999.
Regulation operationalising liberalised skies policy is adopted by end-2000.
Kotoka International Airport management and development concession is signed with private operator by end 2000.
E. GHANA FREE ZONES BOARD (GFZB)
The Project will assist the GFZB to design information systems which will provide it with the appropriate technological support to undertake al aspects of promotion and facilitation (i.e. investor tracking and Investor Enterprises management functions)
Develop a comprehensive capacity building programme aimed at improving service delivery within the GFZB staff.
F. GHANA INVESTMENT PROMOTION CENTRE (GIPC)
The Project is to support the development and implementation of a second 5-year Corporate Plan to enhance GIPC’s ability to undertake targeted investment promotion.
Enable GIPC to train staff to enhance its strategic perspectives in such areas as information gathering, environmental scanning and industry analysis.
To create an enhanced tracking system to measure the efficiency of incentives offered as well as results of specific investment promotion activities
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© World INvestment NEws, 1999.
This is the electronic edition of the special country report on Ghana published in Forbes
December 13th 1999 Issue.
Developed by AgenciaE.Tv |
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GHANA
