District Development Fund IV

completed

Since 2009, the Ghanaian fiscal equalization system has been supported by the District Development Facility (DDF) basket financing, which is jointly financed by the Ghanaian government, Germany, France, Canada, Denmark and Switzerland. The long-term goal of the project is to establish a nationally uniform, performance-oriented fiscal transfer system to the district administrations. This is intended to improve municipal services in order to contribute to improving the living conditions of the poorer population in particular. Since its establishment, the DDF has become an integral part of the Ghanaian fiscal equalization system. However, the DDF should not remain a permanent parallel mechanism to the constitutionally constituted District Assembly Common Fund (DACF). The integration of the DDF into the DACF while retaining the central core elements of the facility was identified as the most technically and politically viable approach to the sustainable institutionalization of the transfer mechanism. This integration is to take place as part of the fourth program phase. Phase IV will have the following objectives: (1) increasing the discretionary resources available to the district administrations (Metropolitan, Municipal and District Assemblies - MMDAs); (2) setting incentives for improved compliance with legal and administrative requirements; (3) systematically linking performance assessment and the implementation of training measures and (4) harmonizing financial and technical support for the districts. The phase is expected to last for 3 years (1.1.2018 - 31.12.2020). The implementation of the project is planned as part of a Sector Wide Approach (SWAp). The FC contribution amounts to EUR 21.0 million in the form of a grant.