Petroleum revenue funding to GIIF restored, says PIAC
Petroleum revenue funding to the Ghana Infrastructure Investment Fund (GIIF) has been restored, says the Public Interest and Accountability Committee (PIAC).
The Committee in its 2021 Semi-Annual Report on the management and use of the country’s petroleum revenues for the first half of the year, noted the restoration of funding to GIIF was due to the amendment of the Earmarked Funds Capping Realignment Act, 2017.
“The Earmarked Funds Capping Realignment Act, 2017, which discontinued allocations to GIIF for infrastructural development has been amended to restore petroleum revenue funding to GIIF.
“PIAC notes with commendation the amendment of the Earmarked Funds Capping and Realignment Act, 2017 and the subsequent resumption of allocations to GIIF, remarked PIAC.
According to PIAC, the Ministry of Finance allocated, out of the total Annual Budget Funding Amount (ABFA) of $155.2 million, an amount of $21,723,434.68 million to the Ghana Infrastructure Investment Fund (GIIF) for the Agenda 111 project, leaving a balance of $133.5 (GH¢891,219,215.64) for distribution over four (4) priority areas selected.
Per the Petroleum Revenue Management (Amendment) Act, 2015 (Act 893) and the Ghana Infrastructure Investment Fund Act, 2014 (Act 877), petroleum revenue allocation to the GIIF should be 25 percent of the ABFA.
The Ghana Infrastructure Investment Fund is a body corporate wholly owned by the Republic of Ghana and established pursuant to the Ghana Infrastructure Investment Fund Act, 2014, Act 877,
The Fund’s mandate is to mobilize, manage, coordinate and provide financial resources for investment in a diversified portfolio of infrastructure projects in Ghana for national development.
The Committee, in its report, advised the Finance Ministry to increase petroleum revenue allocation to the Ghana Stabilisation Fund (GSF) to better serve its purpose as a sovereign wealth fund set up to shore up the Annual Budget Funding Amount (ABFA) expenditure when there are revenue shortfalls in the budget.
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The recommendation by the Committee follows the capping of the GSF from $300 million to $100 million last year by government in its bid to gain access to more funds to tackle the Covid pandemic.
The 2021 PIAC Semi-Annual Report covers the period January to June and encompasses a broad range of issues associated with petroleum revenue management such as information on production, liftings, total revenues accrued and allocated by Government, ABFA utilisation, and the management of the Ghana Petroleum Funds (Ghana Stabilisation Fund (GSF) and the Ghana Heritage Fund (GHF)). It also examines other issues pertinent to the performance of various institutions charged with responsibilities in the PRMA.
Since its establishment in September 2011, PIAC has exercised its oversight responsibility of monitoring and evaluating the management of Ghana’s petroleum resources by the government and stakeholder institutions.
