Ghana - Public Financial Management and Private Sector Competitiveness Support Programme - Phase II

The proposed intervention is an ADF loan of thirty-five million Units of Account (UA 35 million) to the Republic of Ghana to finance the second phase of the Public Financial Management and Private Sector Competitiveness Support Programme (PFMPSCSP II). This will allow for the strengthening of fiscal consolidation, deepening of PFM reforms, and improving the efficiency and competitiveness of the private sector. Like the first operation, PFMPSCSP II will be a single tranche. Consistent with the Bank’s Policy on Program Based Operations (PBOs), the disbursement of the proceeds of the first phase in the programmatic series (UA40.00 million) was effected against the achievement of a set of prior actions for 2015. In addition, the PFMPSCSP included indicative triggers for the second phase (PFMPSCSP II) in 2016, thereby providing predictable financing for the Government of Ghana (GOG) and supporting a medium-term reform platform for policy dialogue. The PFMPSCSP II has the same Components as Phase I of the operation, namely (i) Strengthening Fiscal Consolidation; (ii) Deepening PFM Reforms; and (iii) Enhancing Efficiency and Competitiveness of the Private Sector. These three components are complementary and mutually reinforcing in that fiscal consolidation will contribute to reduced Government indebtedness and lower cost of money; while PFM reforms will lead to efficiency in government operations and contribute to fiscal consolidation.