The outgoing World Bank Country Director, Frank Pierre Laporte, has strongly indicated that project funds allocated to Ghana but have not been utilized will be sent back to Washington, DC, in the USA.
This, he explained, is a policy designed to compel countries to use funds allocated to them within a specific time, or lose it for re-allocation to other countries in need.
“Our new president has taken a strong stance, and monies that are not used will be brought back to Washington DC,” Mr. Laporte warned.
Speaking on PM Express Business Edition with host George Wiafe, he disclosed that some important projects should have been executed but have been delayed, after rescheduling and postponements.
“Our projects usually last up to 4 to 5 years, and normally it is extended for two to three years, but our management doesn’t like this anymore. The projects will not go beyond 10 years”, he stressed.
“There is project that is ending in June 2024, which is the E-Transform Project. If we don’t take the money and use it for other things, June [2024] will come and the money will be sent back to Washington” he disclosed.
Mr. Laporte also revealed that an agreement has been reached with the Ministry of Finance and Communications Ministry to address challenges that delay the government from accessing project funds.
“We are looking at the possibility of taking this money and putting it into other projects that will be of benefit to Ghana”.
He advised the government to be strict on fiscal discipline to ensure that the recent economic gains are sustained.
According to him, being disciplined is one of the major ways to protect public finance and not erode the gains.
He added that World Bank is committed to assisting Ghana stabilise the economy and reduce poverty.
Mr. Laporte also disclosed that the World Bank has disbursed $1.6 billion to Ghana over the past four years. These are funds that have been advanced to Ghana to support some projects in the economy.