G GO OG G/ /I ID DA A/ /I IF FC C M MI IC CR RO O,, S SM MA AL LL L& &M ME ED DI IU UM ME EN NT TE ER RP PR RI IS SE EP PR RO OJ JE EC CT T

(IDA CREDIT NO. 4139-GH)

H HA AL LF FY YE EA AR RR RE EP PO OR RT T

( (J Ja an nu ua ar ry y J Ju un ne e2 20 01 11 1) )

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Table of Contents
1. INTRODUCTION .................................................................................................................................. 3 1.1. 1.2. 2. 2.1. BACKGROUND ............................................................................................................................. 3 CHANGES IN PROJECT IMPLEMENTATION ............................................................................... 3 ACCESS TO FINANCE ................................................................................................................... 3

REPORT ON PROJECT COMPONENTS ............................................................................................... 3

2.1.1. LINE OF CREDIT .....................................................................................................................................3 2.1.2. PARTIAL CREDIT GUARANTEE ......................................................................................................... 4 2.1.3. TECHNICAL ASSISTANCE TO BANKS ............................................................................................... 4 2.1.4. ADDITIONAL FINANCIAL INSTRUMENTS ........................................................................................ 4

2.2.

ACCESS TO MARKETS ................................................................................................................. 5

BDS FUND ..........................................................................................................................................5 INDUSTRIAL SUB-CONTRACTING & PARTNERSHIP EXCHANGES (SPX).........................................5 WEB-BASED PRODUCT GALLERY......................................................................................................5 ABRAFO CRAFT VILLAGES & TOURISM VALUE CHAIN................................................................... 6 CREATIVE INDUSTRIES ..................................................................................................................... 6 ELECTRICITY AT ADJABENG .............................................................................................................. 7 ICT PARK ............................................................................................................................................ 7 RURAL TECHNOLOGY FACILITIES ..................................................................................................... 7 STORM DRAIN & WATER AT MPIP .................................................................................................. 8 EXPORT TRAINING MODULES & PROCESSED FOODS ................................................................... 9 NATIONAL EXPORT STRATEGY ........................................................................................................ 9 PTIS/ SME DATABASE ....................................................................................................................... 9

2.2.1. 2.2.2. 2.2.3.

2.3.

ENTREPRENEURSHIP DEVELOPMENT ....................................................................................... 6

2.3.1. 2.3.2. 2.3.3. 2.3.4. 2.3.5. 2.3.6.

2.4.

TRADE FACILITATION ................................................................................................................. 9

2.4.1. 2.4.2. 2.4.3.

3. 4. 5. 6.

REPORT ON PROJECT INDICATORS ..................................................................................................11 FINANCIAL SUMMARY ...................................................................................................................... 13 PROCUREMENT REPORT .................................................................................................................. 14 CHALLENGES...................................................................................................................................... 18 6.1. 6.2. GOVERNMENT COUNTERPART FUNDING ................................................................................ 18 OBSTACLES IN PROJECT IMPLEMENTATION ........................................................................... 18
GHANA FREE ZONES BOARD .......................................................................................................... 18 CEDECOM ......................................................................................................................................... 18

6.2.1. 6.2.2.

6.3. 7.

MSME WEBSITE .......................................................................................................................... 18

CONCLUSION ..................................................................................................................................... 19

MSME PROJECT
Ministry of Trade & Industry

1.
1.1.

INTRODUCTION
BACKGROUND

This document is a progress report on the implementation of the various components of the MSME Project in Ghana from January to June 2011. The Micro, Small & Medium Enterprises (MSME) Project is a joint Government of Ghana, IDA and IFC MSME Program which aims to increase the competitiveness and employment levels of Ghanaian MSMEs. The project was formulated to complement Governments Medium-Term Private Sector Strategy (PSDS) and the Trade Sector Support Programme (TSSP) which aim to trigger shared growth and lower poverty levels through increasing the competitiveness and employment levels of MSMEs in Ghana.

1.2. CHANGES IN PROJECT IMPLEMENTATION

In March 2011, the World Bank made changes to the Development Credit Agreement. These changes include; i. ii. iii. Extension of the end of project to June 2013 (for selected components only) Cancellation of US$10 million from the project, and A number of other changes including the amendment to the set of indicators

2.

REPORT ON PROJECT COMPONENTS

2.1. ACCESS TO FINANCE

2.1.1. LINE OF CREDIT
The Line of Credit (LOC) component was designed to offer participating banks access to long-term funds to enable them offer MSMEs longer-term loans to improve their businesses and make them more competitive.

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IFC has held a number of meetings with two banks (GT Bank and Stanbic Bank) which may lead to the start of this component. It is still not very clear when this component will finally take off.

2.1.2. PARTIAL CREDIT GUARANTEE

The Partial Credit Guarantee (PCG) offers participating banks some cushion on the losses they may occur in dealing with MSMEs. This is to motivate the participating banks to improve lending to MSMEs. Ecobank has signed on and is operational. No claims have been made on the facility so far, and it is hoped that the need will not arise. CAL Bank is going through the final formalities to sign on to the PCG. The Risk Sharing Agreement is being finalized, and should be signed within the third quarter.

2.1.3. TECHNICAL ASSISTANCE TO BANKS

This component is meant to improve the (M)SME Departments of participating banks to enable them better understand the SME sector and improve lending to MSMEs. Ecobank has completed two phases (quarters) of the Technical Assistance Program which is being offered by the Frankfurt School of Finance and Management and have started the final phase which will end in October 2011.

2.1.4. ADDITIONAL FINANCIAL INSTRUMENTS

During the project design stage, it was proposed to set up a Ghana Diaspora Equity Fund (GDEF) to mobilize funds from Ghanaians in the Diaspora for investment into the MSME sector. The component run into a few problems in its implementation and had to be re-started. Currently, the MSME Project is working at developing the regulatory and legal framework to facilitate the implementation of this component by interested private sector players. Efforts are being made to obtain assistance from various quarters including the Security and Exchange Commission and the Ghana Stock Exchange.

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2.2. ACCESS TO MARKETS

2.2.1. BDS FUND
The objectives of the BDS Fund Matching Grant Scheme are to offer essential Business Development Services to MSMEs and to develop the market for these services. The first phase of the BDS came to an end in April 2010, and a new Fund Manager Triodos Facet has been selected to implement the second phase. The contract for Triodos Facet was signed in March 2011, and they implemented the inception phase immediately thereafter. The actual implementation of the BDS was delayed due to unacceptable changes in the implementation team of Triodos Facet. The issues were resolved in the latter part of the second quarter, and implementation is scheduled to start in July 2011.

2.2.2. INDUSTRIAL SUB-CONTRACTING & PARTNERSHIP EXCHANGES (SPX)

The Association of Ghana Industries (AGI) is implementing this component, which aims to encourage large firms to sub-contract some aspects of their contracts to smaller companies, and also to improve the capacity of the smaller companies to implement these sub-contracts. In 2010, the AGI through the assistance of the SPX Consultant funded by the MSME Project established twenty-three sub-contracts in the construction sub-sector. The consultant also prepared training modules to improve the capacity of the MSMEs to implement the sub-contracts. The AGI proposed to implement a test-run of the training modules within the first half of 2011. This was however not implemented. It is hoped that AGI will implement this activity within the third quarter.

2.2.3. WEB-BASED PRODUCT GALLERY

The objective of the Web-Based Product Gallery (WBPG) is to provide an online platform to display made-in-Ghana products to interested buyers/ investors. It was designed to complement a physical product gallery that would serve as a showroom for made-in-Ghana products. This component is being implemented by the Domestic Trade & Distribution of MOTI. Since 2008, information had been collected from various companies to develop the WBPG. A number of changes were proposed and made on this component. In December 2010, the Hon. Minister instructed that the WBPG be developed while more background research is made on the World Trade Portal - which was suggested along the line.

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Activities implemented under this component from January to June 2011 include the development of TOR for the assignment, cleaning of existing data, and photography of products. Due to problems with the selected firm (to develop the WBPG), the second place firm has been furnished with the TOR to submit technical and financial proposals. It is expected that the WBPG will be up and running by the end of the third quarter of 2011.

2.3. ENTREPRENEURSHIP DEVELOPMENT

2.3.1. ABRAFO CRAFT VILLAGES & TOURISM VALUE CHAIN
The Central Region Development Commission (CEDECOM) is implementing the two components Upgrading of the Abrafo Handicrafts Centre and a study on the Tourism Value Chain. The Abrafo Craft Villages component has experience significant, yet unnecessary, delays in implementation. The Board of CEDECOM has been reluctant in allowing the PCU of the MSME Project to offer Technical Assistance to facilitate the speedy implementation of the component since the beginning of 2011. The component is still in the early days of procurement; a consultant is being selected to prepare designs, drawings and bidding document for selection a contractor. It is hoped that the consultant will be in place by the end of the third quarter of 2011. Request for Expressions of Interest for the study on Tourism Value Chain were published in the second quarter of 2011, and responses have been evaluated. The shortlisted firms will be furnished with Requests for Proposals in the third quarter of 2011.

2.3.2. CREATIVE INDUSTRIES

A Creative Industries Specialist was recruited to coordinate research into the creative industries, organize a national forum to validate the findings, and assist the Ministry of Trade and Industries in promoting the creative industries. During the first half of the year, TOR was developed to recruit a researcher undertake the research activity. Procurement processes were followed, and a researcher was thus selected. The contract has been submitted to the Hon. Minister for signature. It is hoped that the researcher will commence work in the third quarter.

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Ministry of Trade & Industry

2.3.3. ELECTRICITY AT ADJABENG

This project component is being implemented by MOTI, and its main objective is to facilitate the procurement and installation of electrical transformers at the Garment Producers Enclave at Adjabeng in Accra. By the end of December 2010, the designs for the installation had been done, and bidding documents had been prepared for the selection of a contractor to procure and install the transformers. From January to June 2011, procurement processes led to the selection of a contractor (B. Appah Electricals). The site has been handed over to the contractor, and processes have been initiated to procure the transformers. To ensure that compatible and durable transformers are procured, MOTI is collaborating with independent technical experts to inspect the specification of the transformer every step of the way.

2.3.4. ICT PARK

The Information Technology Enables Services (ITES) department of the Ministry of Communication (MoC) is the implementing agency for this component. The objective of the component is to facilitate the design and construction of the first phase of the first ICT Park in Ghana. Consultants (Garland Ormond International) were selected in 2010 to design the concept, develop architectural drawings and supervise the construction of the ICT Park. A study tour of ICT Parks in China, India and Malaysia was conducted in December 2010, and the lessons learnt were incorporated in the design of the concept for Ghanas ICT Park. Concepts for the development of the ICT Park were submitted in the first quarter of 2011, and following approval by the PCU and implementing agency, the consultant continued to prepare architectural and engineering drawings. Stakeholders meetings were organized in the first two weeks of June 2011 to review the drawings and bidding documents. Procurement processes will be set in motion to select a contractor within the second half of 2011.

2.3.5. RURAL TECHNOLOGY FACILITIES

The Rural Enterprises Project (REP) is the implementing agency for this component, which aims to construct and equip three Rural Technology Facilities (RTFs) in Damongo, Awutu Senya and Somanya.

MSME PROJECT
Ministry of Trade & Industry

The year began with the selection of a Consultant to review and revise the existing designs and prepare bidding documents for the selection of a contractor. There were some delays due to formatting errors in the bidding documents and gaps in communication. The bidding documents were re-formatted by the MSME Project, and adverts are scheduled to appear in the national newspapers in July 2011.

2.3.6. STORM DRAIN & WATER AT MPIP

Storm Drain Companies operating in the Multi-Purpose Industrial Park (MPIP) in Tema experience flooding after any medium-to-heavy rainfall. A request was made to the MSME Project to use some of its funds to fund the construction of a Storm Drain to alleviate the flooding in the area. Due to the urgency of the issue (the Ghana Meteorological Service forecasted heavy rains in May June 2011), the MSME Project requested for a no objection to select a consultant by single sourcing. The Ghana Free Zones Board (GFZB) objected to selection of a consultant by this method. After much deliberation, the assignment was split into, with the MSME Project and the GFZB funding the two phases which could run concurrently. Requests for Expressions of Interests were published and shortlisted was done. The GFZB and the Hon. Minister have objected to the shortlisting of two firms with some common personnel which, according to the procurement hubs of the MSME Project and the Ghana Office of the World Bank, is permissible. The procurement process is at a stand-still, pending the resolution of the abovementioned issue. Improvement of Water Supply The MSME Project is also supporting the Improvement of Water Supply at the MPIP. Although there is a water storage system in the enclave, this is not enough to meet the increasing demand as more companies move into the area. The MSME Project recruited a consultant to design and install equipment to improve the water supply at the enclave. The consultant is facing significant challenges in locating and acquiring a piece of land for the installation of the equipment. A plot of land was identified in the beginning of the year, but negotiations broke down along the way. The MSME Project has therefore advised the consultant to continue searching for a suitable location for the installation of the equipment.

MSME PROJECT
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2.4. TRADE FACILITATION

2.4.1. EXPORT TRAINING MODULES & PROCESSED FOODS
The Ghana Export Promotion Council (GEPC) is implementing the two components. In the first component (Export Training Modules) the MSME Project is assisting GEPC to develop new training modules (which take into consideration current trends) for the Export Training School. The consultant has completed the modules and conducted a Training of Trainers (TOT) workshop to prepare selected trainers to use the modules, and also to be able to develop additional modules if the need arises. GEPC will incorporate the new training modules in its Export Training Courses. In the second component, GEPC has contracted a consultant to conduct a needs assessment involving fifty (50) companies in the processed foods sub-sector. The objective is to facilitate the trading of processed foods in the developed markets. The consultant (PriceWaterhouseCoopers) is yet to submit the final report on the assignment. It is expected that they will submit it within the third quarter.

2.4.2. NATIONAL EXPORT STRATEGY

A consultant was contracted to develop a National Export Strategy to guide the Ministry of Trade in the management of Exports. In January 2011, a team was constituted to review the draft report, and the comments and suggestions were given to the consultant for incorporation into the document. In June 2011 (after much delay on the part of the consultant) another workshop was held to review the revised report. The review panel was still not impressed with the work done by the consultant. The consultant has been given some more time to finalize the strategy document for use.

2.4.3. PTIS/ SME DATABASE

The aim of this component is to establish a Proactive Trade Information System (PTIS) and a Database of SMEs in Ghana. This component is being facilitated by the NBSSI. Prior to January 2011, the component had under gone a number of changes, and finally NBSSI was selected as the Implementing Agency responsible for the PTIS/ SME Database. The year 2011 started with the finalization of the Terms of Reference for the development of the PTIS/ SME Database. Procurement processes lead to the selection of eSolutions Consulting Ltd as

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Ministry of Trade & Industry

the preferred developer. The contract was signed on June 1, 2011, and be the end of the first half of the year, the consultant had submitted and revised the inception report, and had started gathering information for the assignment. It is expected that the assignment will be completed by the end of the third quarter.

MSME PROJECT
Ministry of Trade & Industry

10

3.

REPORT ON PROJECT INDICATORS

INDICATORS
Number of loan officers trained/coached Number of loans disbursed by FIs to MSMEs Value ($) of loans disbursed by participating FIs to MSMEs Outstanding SME Loan Portfolio (US$) Number of active loan accounts Percentage of SME loan portfolios at risk

SUBCOMPONENTS Partial Credit Guarantee

2010 1st Half

2010 2nd Half

2011 1st Half

54 92 3,112,505.73 1,444,693.16 75 0

Updating and enforcing regulations Improving Business Registration Process

Number of accreditation institutions to certify MSME products Number of MSME products certified Average number of days to register a Sole Proprietorship Average number of days to register a Subsidiary Business Name Average number of days to register a Partnership Average number of days to register a business Limited by Guarantee Average number of days to register a Limited Liability Company Average official cost to register a Sole Proprietorship Average official cost to register a Subsidiary Business Name Average official cost to register a Partnership Average official cost to register a business Limited by Guarantee Average official cost to register a Limited Liability Company *(+ 0.5% of stated capital) Number of businesses registered: Sole Proprietorship

2 74 71 4 4 4 4 8 35.00 35.00 75.00 155.00 175.00

4 4 4 4 8 35.00 35.00 75.00 155.00 175.00

4 4 4 4 8 35.00 35.00 75.00 155.00 175.00

12,254

15,074

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Ministry of Trade & Industry

11

SUBCOMPONENTS

INDICATORS
Number of businesses registered: Partnership Number of businesses registered: External Company Number of businesses registered: Guaranteed Company Number of businesses registered: Limited Liability Company Number of businesses registered: Subsidiary Business Name Total number of businesses registered

2010 1st Half

2010 2nd Half

98

2011 1st Half

102 52

45 2,161 1,984 6,609 163 21,153 12 6 6 0 12 8 6 5 8 48 15 9 0 1 0 0 0 0 0 1 1 8 122 3 20 134 8,094 226 25,709 12 8 6 5 9 45 16 1.69 1 2 2 16 1 2 10 8

Meetings - PCU, TC

Number of PCU meetings scheduled Number PCU meetings held Number of Technical Committee meetings scheduled Number of Technical Committee meetings held Number of Implementing Agencies active Number of reports expected from Implementing Agencies Number of reports received from Implementing Agencies Average number of days reports are delayed Number of evaluation assignments conducted Number of audits conducted on project supported systems Number of training programs organized Number of people benefiting from training programs Number of study tours organized Number of people sponsored for study tours Number of effective man days of study tour sponsored Number of participants sponsored for conferences

Monitoring Activities

Evaluation of project components

Audits (Tech., Fin., Procurement, )

Training Workshop Study Tours

Conferences

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Ministry of Trade & Industry

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4.

FINANCIAL SUMMARY
EXPENDITURE CATEGORY

ORIGINAL FUND ALLOCATION IDA US $ 11,162,908.77 2,831,799.00 9,492,341.53 1,082,975.00 759,105.00

DISBURSEMENT

IDA

TO DATE US $

DISBURSEMENT

GOG

Others

TOTAL

TO DATE US $

US $ 5,000.00 149,126.55

US $ 43,940.75 1,044,120.50 3,991,558.39 813,114.49 954,784.47

[1] Works [2] Goods [3] Consultants' Services & Audit [4] Training [5] Operating Costs [6] BDS Grants [7] LOC Performance Grants [8] Sub-Programs (Pooled Account) [9] Partial Credit Guarantees TOTAL

43,403.10 985,536.65 3,760,587.83 806,510.85 572,043.65

537.65 58,583.85 225,970.56 6,603.64 233,614.27

3,935,531.00 250,000.00 1,800,000.00 3,685,339.70

2,211,127.76 1,800,000.00 1,185,339.70

1,636,685.53 -

3,847,813.29 1,800,000.00 1,185,339.70

35,000,000.00

11,364,549.54

525,309.97

1,790,812.08

13,680,671.59

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Ministry of Trade & Industry

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5.

PROCUREMENT REPORT
IMPLEMENTATION STATUS/PROGRESS PROCUREMENT STAGE VALUE USD
PLAN ACTUAL STATUS/ISSUES FACED

SUB COMPONENTS

COMMENTS

ACTIVITY START DATE

PREVIOUS

DATE

CURRENT

DATE

PROCUREMENT CONSULTANCY- PRIOR REVIEW PROJECT COORDINATING UNIT i. Consultant to develop Ghana Diaspora Equity Fund QCBS

TURN AROUND TIME (DAYS)

N/A

Submission of TOR for no objection

26 01 11

Receipt of no objection to TOR

N/A

N/A

700,000.00

N/A

The TTL has proposed to the PCU to only focus on addressing the legal framework for the establishment of the fund. EOI responses were evaluated on 3/5/2011. The GFZB and the Hon. Minister have raised some issues on the evaluation process. These issues are being resolved for the process to continue Contract negotiations were held with Consultant, Silky IT on the 11/4/11. However, Client had some issues on the qualifications and experience of the Key staff of the selected firm since it does meet the requirement of the TOR. Client clarifying issues for the next evaluated firm to be invited to submit both technical and financial proposals.

ii.

Storm Drain QCBS 30 03 11 Advertisement of EOI 30 03 11

CONSULTANCY- POST REVIEW MINISTRY OF TRADE & INDUSTRY ii. Web Based Product Gallery - CQS

Submission of EOI report & Draft RFP

N/A

N/A

200,000.00

N/A

17 02 11

Invitation to submit companys profiles

17 02 11

Clarification on contract issues

N/A

N/A

50,000.00

N/A

PROJECT COORDINATING UNIT i. Research into Creative

IMPLEMENTATION STATUS/PROGRESS PROCUREMENT STAGE SUB COMPONENTS

ACTIVITY START DATE
27 01 11 ii. Rural Technology Facility (RTF) CQS

VALUE USD
PLAN ACTUAL

PREVIOUS

DATE

CURRENT

DATE

Industries QCBS

Advertisement of EOI

27 01 11

Financial Proposals opening

TURN AROUND TIME (DAYS)

120 days

COMMENTS STATUS/ISSUES FACED

31 05 11

100,000.00

N/A

iii.

Abrafo Craft Village- CEDECOM - QCBS

10 01 11

Invitation to submit companys profiles

10 01 11

Commencement of work

Consultants financial proposals were opened on the 31/5/2011. Minutes of financial opening forwarded to Minister for her review. She has raised some issues on the firms whose proposals were opened she is yet to respond. Contract was signed by the Hon. Minister on 30/3/2011. Contract was signed by the consultant on 4/4/2011. Consultants have since commenced work. Assignment on going. RFPs were issued to consultants on 20/4/2011. Consultants proposals received on 26/5/2011. Consultants proposals were evaluated by CEDECOM on 31/5/2011. CEDECOM yet to submit technical evaluation report to the PCU for review. Contract was signed by consultant on 31/5/2011.

04 04 11

2 days

50,000.00

37,566.00

iv.

PTIS and SME Database QCBS

05 01 11

Advertisement of EOI

05 01 11

Submission of report on technical evaluation

31 05 11

N/A

100,000.00

N/A

v.

Triangular Tourism CEDECOM 24 01 11

Advertisement EOI

24 01 11

vi.

Re-launch of MSME Website

Consultants commenced work

01 06 11

120 days

100,000.00

90,850.00

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Ministry of Trade & Industry

15

IMPLEMENTATION STATUS/PROGRESS PROCUREMENT STAGE SUB COMPONENTS

ACTIVITY START DATE PREVIOUS DATE CURRENT DATE TURN AROUND TIME (DAYS)

VALUE USD
PLAN ACTUAL

COMMENTS STATUS/ISSUES FACED

vii.

Cotton Pricing SSS

Consultant commenced work on 1/6/2011. Consultant held a kick off meeting with client on 2/6/2011. Assignment on going.

NON-CONSULTING SERVICESPOST REVIEW - GOODS

i. Supply of Substation Equipment at Adjaben- NCB

08 04 11

Advertisement of EOI

08 04 11

Submission of EOI short listing & Draft RFP

N/A

N/A

50,000.00

N/A

N/A

Invitation to submit Companys profiles

17 02 11

Contract signing

EOI short listing report has been reviewed and comments forwarded to CEDECOM on 23/6/2011 to re-submit report with the draft RFP for review Draft contract was forwarded to the Hon. Minister and she has proposed the MSME website could be hosted on the Ministrys domain. Issues being discussed by MOTI and PCU for final decisions to be taken.

N/A

N/A

5,000.00

15,812.50

i.

Supply and Installation of Air conditioners Shopping N/A

Request for no objection to TOR and CVs

Contract signed 25 03 11 05 04 11 10 days 12,000.00 12,426.00

No objection to sign contract was received on the 4/4/2011 Contract was signed on the 4/4/11.Consultant

MSME PROJECT
Ministry of Trade & Industry

16

IMPLEMENTATION STATUS/PROGRESS PROCUREMENT STAGE SUB COMPONENTS

ACTIVITY START DATE PREVIOUS DATE CURRENT DATE TURN AROUND TIME (DAYS)

VALUE USD
PLAN ACTUAL

COMMENTS STATUS/ISSUES FACED

27 04 11

Deadline for submission and bid opening

03 03 11

Delivery & Installation of Transformers

N/A

N/A

420,000.00

414,949.06

commenced work on 5/4/2011. Assignment completed on 14/4/2011.

22 02 10

Invitation to quote

Contract Award 17 03 11 28 03 11 11 days 6,000 6,016

Contractors submitted specifications which have been reviewed were found unsatisfactory and was rejected. Contractors have submitted new specification which is being reviewed by client, if accepted the transformers will be ordered.

Contract has been issued to supplier. Air conditioners yet to be delivered and installed.

MSME PROJECT
Ministry of Trade & Industry

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6.

CHALLENGES

6.1. GOVERNMENT COUNTERPART FUNDING

There are a number of activities for which the MSME Project owes the 10% Government of Ghana counterpart funds. The PCU received notice of the release of some part of the outstanding counterpart funds since early May 2011, but the funds had not yet reflected in the accounts at the end of June 2011.

6.2. OBSTACLES IN PROJECT IMPLEMENTATION

Some Implementing Agencies have significantly contributed to the delay in project implementation. Notable among them are the Ghana Free Zones Board and CEDECOM.

6.2.1. GHANA FREE ZONES BOARD

The GFZB are responsible for the implementation of Improvement of Water Supply at the MultiPurpose Industrial Park. They have not shown appreciable interest in the implementation of this component, which has caused significant delay in its implementation.

6.2.2. CEDECOM
CEDECOM is implementing the Abrafo Handicrafts Centre and Tourism Value Chain components. They are unwilling to accept technical assistance from the PCU, and have committed various blunders in the procurement process, and this has resulted in significant delays in the implementation of their components.

6.3. MSME WEBSITE

The hosting contract for the MSME website and emails expired in the second quarter, and it has taken the PCU some time and effort to get the original service providers to rectify the issue. This has resulted in lack of access to the Project Website and emails. The problem is being resolved, and this will fortunately lead to improved management of the Website.

7.

CONCLUSION

The PCU has in the first half of 2011 worked closely with the Implementation Agencies and has facilitated the fast-tracking of some components. Components that made significant progress include the ICT Park and Proactive Trade Information System/ SME Database. In the second half of the year, the following milestones are expected;

COMPONENT Proactive Trade Information System / SME Database Web-Based Product Gallery Technical Assistance to CAL Bank ICT Park Rural Technology Facilities Electricity at Adjabeng BDS Fund

EXPECTED STATUS Website up and running Website up and running Consultant recruited and starting work Contractor recruited and starting work Contractors recruited and starting work Transformers installed Support to Value Chains started

MSME PROJECT
Ministry of Trade & Industry

19