Innovative financing (IF) of infrastructure projects in Ghana: conceptual and empirical observations

Abstract

Traditional methods of financing have failed to resolve Ghana's infrastructure deficit. Innovative financing (IF) solutions are being encouraged to alleviate this, but presently IF knowledge is limited. This study provides an overview and maps the evolution of IF solutions to conceptually model their characteristics and application to major infrastructure projects, especially in the context of LDCs. An inductive methodology draws extensively on extant literature and published data from Ghanaian ministries, departments and agencies who procure infrastructure works. The study highlights how the IF concept stems from a plethora of public finance issues including reform of government service delivery, new tax tools, public–private partnerships and alternative financing arrangements and further how IF has been focused at educational, road, water infrastructure, housing and district assemblies. Through illumination of the Ghanaian IF concept, the study will be of utility to policy makers and international development agencies considering investment in the country, while its broader ramifications will help the search for alternative ways to finance infrastructure projects per se. It is concluded that further research would be beneficial in examining strategic IF issues, especially regarding the extent to which available tools and techniques are utilized in each of the four key IF phases (preparation, implementation, monitoring, evaluation).