19.05.2008 Business & Finance

Ghana, development partners sign second MDBS

19.05.2008 LISTEN

Ghana and 11 Development partners on Monday signed
a second Multi Donor Budget Support (MDBS) Framework memorandum to renew the partnership between them.
In 2003 the government and nine of its development partners signed the first MDBS framework memorandum and development partners have since supported the government with annual contribution of about 300 million dollars in loans and grants.
The MDBS partners are the African Development Bank, Canada, Denmark, the European Commission, France, Germany, The Netherlands, Switzerland, United Kingdom, World Bank and Japan.
The United Nations Development Programme and USAID were not signatories to the Framework Memorandum. They are observers in the MDBS group in Ghana in line with the Paris Declaration on harmonization of arrangements, procedures as well as sharing of analysis.
Dr. Akoto Osei, Minister of State of Finance and all the development partners signed the agreement.
Mr Joachim Schmitt, Counsellor, Development Cooperation at the German Embassy and MDBS Co-Chair, said the second signing was to revise and update the framework memorandum signed in 2003 to reflect the current international standards as well as the evolved practices of MDBS Ghana.
"The signing of the new Framework Memorandum renews our partnership and symbolizes our commitment to further support efforts to strengthen the people of Ghana and their government to take their own decisions and use their own systems while deciding on the best way forward to achieve the MDGs and promote growth beneficial to all," he said.
He said MDBS partners' disbursement for 2008 would total about 350 million dollars, adding to the total MDBS contributions since inception to close to two billion dollars by the end of this year.
Dr. Osei said the MDBAS had proved to be a prudent aid alternative and had also contributed to the successes government had chalked in the implementation of the GPRS II.
He said various studies and reports had rated general budget support as the most aligned, predictable and cost effective aid modality, which supported the principle of national ownership.
Dr Osei, however, appealed to the partners to make the disbursement early enough to serve its intended purpose.
"This year, the disbursement from some partners was late and it affected our cash flow," he added.

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