Improving Institutional and Infrastructure Development in Ghana

Drawing upon International Development Association (IDA) funding, Ghana has strengthened its intergovernmental fiscal framework and local public financial management and improved social accountability of urban service and management. The Project strengthened the capacities of 46 MMAs to deliver infrastructure and service to more than 6.6 million citizens, of which 54 percent was female.

Ghana’s urbanization rate was 51 percent in 2010, with a growth rate of 3.2 percent. Ghanaian cities faced many challenges in managing urbanization and could not meet the growing demands for infrastructure and services. Ghana’s decentralization and intergovernmental fiscal framework had not been fully responsive to the specific and significant needs of rapidly growing cities. These needs were not met through local governments’ own revenues or fiscal transfers from the central government which did not take into account the pressures faced by growing urban centers. Furthermore, local Public Financial Management (PFM) systems and the accountability of local governments to the central government and their citizens, which were critical to manage capital investments more efficiently and effectively, were weak.

Approach

To strengthen accountability and transparency of MMAs, the project took a two-pronged approach. At the national level, Social Accountability Unit was established and institutionalized in the Ministry of Local Government and Rural Development. At the local level, the innovation introduced was the involvement of leading NGOs in social accountability and the establishment and use of media network. The Project introduced the Social Public Expenditure and Financial Accountability (SPEFA) forum and promoted Town Hall Meeting (THM), supported by NGOs and the media network. These forums and meetings brought together citizen groups and increased their understanding of local government investment planning and financial management issues. 378 SPEFA meetings were held with 44,104 participants (41 percent female), and 199 THMs were held with 35,503 participants (41 percent female). At the end of the Project, 65 percent of attendees at planning meetings understood issues raised for discussion as evidenced by the Citizen Perception Survey (CPS) in 2017.

Results

Improved and Strengthened the intergovernmental fiscal framework:

outcome

Improved timeliness of fiscal transfers from 17 percent in 2012 to 40 percent in 2017

Reduction in the variance between budgeted amount and actual transfer from 65 percent in 2012 to 35 percent in 2017 � measure of budget credibility

Strengthened sub-national public financial management and accountability

output

28,359 streets named, and 6,388 signage posts mounted

165,361 residential and business properties revaluated

Five PFM guidelines developed (budgeting; reporting and auditing; asset management; revenue management; and social accountability)

outcome

Increased Internally Generated Funds by 148 percent from GHS75,826,397.80 in 2011 to GHS188,086,501.73 in 2017 – 16.9 percent average annual increase

Institutionalized THM in all the 46 MMAs

Clean audit of 46 MMAs in 2017 (39MMAs in 2012)

Improved citizens’ engagement and their perceptions of urban management

output

378 SPEFA meetings with 44,104 participants (41 percent female)

199 THMs held with 35,503 participants (41 percent female)

Media network established with 340 CSO members across 10 regions

outcome

Improved participation in municipal planning meetings from 5 percent in 2013 to 10 percent (2017 Citizen Perception Survey)

Improved infrastructure and services in urban assemblies

output

Education: 2,215 classrooms built, 34,690 pieces of school furniture and equipment provided

Economic: 69 market stores/stalls, and 25 transport terminals/lorry parks constructed

Connectivity: 120.3km road rehabilitated, and 119 drains/culvert/pedestrian foot bridge constructed

Sanitation: 202 boreholes and 93 toilet facilities constructed

Partners

The Project leveraged and built on strategic partnership and support from other development partners (DPs) engaged in decentralization. The DPs include the Danish Development Agency (DANIDA), the French Development Agency (AFD), the European Union (EU) and the German Agency for International Cooperation (GIZ). These DPs had supported the Government on administrative decentralization, nation-wide performance-based grants for general institutional capacity building, and civil service reform. The Project focused on fiscal decentralization, public financial management and social accountability of urban local governments for better urban management and infrastructure and service delivery. This ensured a mutually reinforcing reform agenda in support of the government’s decentralization policy.

Moving Forward

The key outcomes by the Project collectively contributed to creating an enabling environment for a follow-on Program for Results (PforR) operation, the Ghana Secondary Cities Support Program (GSCSP), which was built on the strengthened intergovernmental fiscal framework and local PFM and accountability systems. The GSCSP, US$100 million, was prepared in the last year of the LGCSP and is being implemented since February 2019 with an objective of improving urban management and basic urban services in secondary cities in Ghana.

Beneficiaries

In the 46 MMAs approximately 6.6 million citizens (54 percent female) benefited from infrastructure and service delivery. Hawawu Ameteye goes to Boa Amponsem Senior high School in Dunk wa-on-Offin and stays in a newly built girls’ dormitory. At first, the dormitory that we were in, we were facing problems like security challenges and bed bug attacks. But this place there are no bed bugs and security challenges. We have named it white house since it is like a palace to us.

Source: The World Bank