District Development Fund III

completed

The project aims to strengthen local government administrations (MMDAs) and promote the sustainable and needs-oriented provision of basic public services at district level. Compliance with legal requirements is also to be promoted and the administrative efficiency of local governments is to be improved. The target group of the project is the entire population of Ghana in the country's 216 districts (around 25 million people in July 2013). The borrower and recipient is the Republic of Ghana, represented by the Ministry of Finance (MoF). The sponsor is the Ministry of Local Government and Rural Development (MLGRD). The project, which is financed jointly with DFATD, AFD, DANIDA and SECO, provides funds for the construction, maintenance and operation of infrastructure for the provision of basic municipal services through basket financing. Payments to local authorities are based on performance using continuously adjusted criteria and payment keys that are determined and collected as part of annual functional and organizational analyses (Functional and Organizational Assessment Tool - FOAT). The implementation of national training programs for local authorities to accompany the investments is an integral part of the measure. The total cost of the project is EUR 115.2 million and will run from 2014 to 2016. The FC contribution amounts to EUR 21.0 million.