Gov’t has not abandoned PPPs; it seeks to fast-track projects before private sector participation – Theo Acheampong

Technical Advisor to the Finance Minister, Dr Theophilus Acheampong, has dismissed suggestions that the government is moving away from Public-Private Partnerships (PPPs), explaining that its decision to use public funds to drive some major infrastructure projects is intended to speed up delivery.

He said the government remained committed to PPPs but believed that, under the current circumstances, relying entirely on the traditional PPP process for large-scale projects could cause significant delays.

Speaking on Joy FM's Super Morning Show on Friday, November 13, during a discussion on the review of the 2027 Budget, Dr Acheampong said the government's approach was not a rejection of private sector participation but an attempt to get critical projects completed within a shorter period.

“We've not abandoned PPPs. PPPs are there to provide public goods,” he said.

He explained that taking a major project such as the proposed Accra-Kumasi Expressway through the conventional PPP process, from project structuring to financial closure, could take between seven and 10 years before completion.

According to him, the government wants to avoid such lengthy processes by using dedicated public funds to get some projects started and completed more quickly.

“All that we're saying is that, in the current structure for some of the projects that we're doing, if you went the traditional PPP route, from structuring the project to financial closure and all of that, for a project of the scale of the Accra-Kumasi Expressway, typically you may be looking at seven to 10 years for you to even finish that,” he explained.

“We want to quicken the process. So, what we're saying is that you use some of your dedicated public money to drive this.”

Dr Acheampong said the use of public funds at the initial stage would not prevent private investors from participating in the projects at a later date.

He explained that once construction was completed, the government could sell part of its equity or shares to private sector partners, allowing it to recover some of the money invested.

The proceeds, he said, could then be channelled into other development projects and public investments.

“Once the project is completed, nothing stops you from offloading some of the equity stake or shares in that project to any other private sector partner to come in. That gives you money to be used for other investments,” he said.

He said that this approach would allow the government to achieve two objectives: accelerate the delivery of major infrastructure and create opportunities for private sector participation.

Responding to Prof. Bokpin's argument that commercially viable infrastructure should be financed through PPPs to preserve limited public resources for essential services, Dr Acheampong acknowledged the importance of ensuring that infrastructure investment delivers wider economic benefits.

He said he understood the economist's concerns about opening up the country through improved transport links and promoting more balanced development across the regions.

However, he said that the government's proposed financing arrangement offered a more practical option within Ghana's current circumstances.

“I get the first point about spatially opening up the country and driving the development. But I also get this point about the net benefit,” he said.

Dr Acheampong added that the government's decision to initially finance selected projects with public resources before bringing in private investors was better suited to the country's needs.

“And I would argue that, in this case, the current approach of actually driving this initially with public resources and then later opening it up for the private sector to come in actually, in our context, is much better,” he stated.

Dr Acheampong was responding to concerns raised by Prof. Godfred Bokpin, who had urged the government to use PPP arrangements to finance major road projects and free up public funds for schools, hospitals and other essential infrastructure.