FOURTH REPUBLIC
Ghana Infrastructure Investment Fund Act, 2014 Act
877
ARRANGEMENT OF SECTIONS
Section
Establishment of the Ghana Infrastructure Investment
Fund
1.
Establishment of the Fund
2.
Object of the Fund
3.
Powers of the Fund
4.
Independence of the Fund
5.
Sources of money for the Fund
6.
Bank account of the Fund
7.
Head Office and branches of the Fund
The Board and management of the Fund
8. Governing
body of the Fund
9. Functions of the Board
10. Duties and liabilities of members of the Board
II. Tenure of office of non-executive members
12. Meetings of the Board
13. Disclosure of interest
14. Establishment of committees
15. Allowances
16. Disbursement from the Fund
17. Application for funding
18,Administrative expenses of the Fund
19. Tax exemption
Advisory Committee
20.
Establishment of Advisory Committee
21.
Functions of Advisory Committee
22.
Tenure of office of members of the Advisory
Committee
23.
Meetings of the Advisory Committee
24.
Disclosure of interest
Administrative, financial and miscellaneous
Provisions
25.
Chief Executive Officer
26.
Functions of Chief Executive Officer
27.
Appointment of other staff
28.
,.Accounts
and audit
29.Annual
report and other reports
30.
Investment Policy Statements, codes of practice,
regulations
&internal
guidelines
31.
Indemnity
32.
Regulations
33.
Interpretation
THE EIGHT HUNDRED AND SEVENTY - SEVENTH
ACT
OF THE PARLIAMENT OF THE REPUBLIC OF GHANA
ENTITLED
GHANA INFRASTRUCTURE INVESTMENT FUND ACT, 2014 ACT
877
AN ACT to establish a Fund, wholly owned by the
Republic of Ghana, to mobilise, manage, coordinate
and provide financial resources for investment in a
diversified portfolio of infrastructure projects in
Ghana for national development and to provide for
related matters.
DATE OF ASSENT: 15th August, 2014
PASSED by Parliament and assented to by the
President:
Establishment of the Ghana Infrastructure Investment
Fund
Establishment of the Fund
1. (1) There is established by this Act a fund to be
known as the Ghana Infrastructure Investment Fund.
(2) The Fund is a body corporate with perpetual
succession and a common seal, may sue and be sued
and have in all respects the powers of a body
corporate.
Object of the Fund
2.
(1) The object of the Fund is to mobilise, manage,
coordinate and provide financial resources for
investment in a diversified portfolio of
infrastructure projects in Ghana for national
development.
(2) For the purposes of achieving the object of the
Fund, the Fund shall engage in activities determined
by the Board, including
(a)
undertaking investments for the development of
infrastructure to promote economic growth and
attract investments;
(b)
the management and investment of contributions made
to the Fund;
(c)
reinvesting into the Fund to generate returns, the
profits and proceeds from investment of moneys of
the Fund;
(d)
ensuring in respect to its investment, the
development of skills in infrastructure development,
including project design, project management,
financing and investment,
consistent with the object of the Fund;
(e)
leveraging the capital of the Fund by attracting
investments through the domestic and international
capital and financial markets;
(f)
pursuing the best possible financial returns on
investments having regard to internationally
recognised best practices for
(i) asset allocation and risk management,
(ii) protecting, in the long term, the economic
value of the capital and assets of the Fund; and
(ii) the cost of capital of the Fund and other
incidental costs related to the Fund;
(g)
the provision of debt and equity financing;
(h)
the provision of risk mitigation instruments;
(i)
the management of assets entrusted to it; and
(j) any other activity determined by the Board to
achieve the object of the Fund.
Powers of the Fund
3.
The Fund shall have the power to
(a)
create sub-funds, affiliates or subsidiaries in any
jurisdiction in furtherance of the object of the
Fund;
(b)
invest in, purchase, maintain, divest from, sell or
otherwise realize assets and investments of any
kind; and
(c)
borrow and raise money, on its own or in partnership
with or through its affiliates, from domestic and
international financial markets.
Independence of the Fund
4.
(1) Except as otherwise provided in this Act, the
Fund shall be
independent in the performance of its functions.
(2) The Fund shall be accountable to the Minister on
the achievement of its objectives and compliance as
set out in this Act and in the guidelines of the
Fund.
Sources of money for the Fund
5.
(1) The sources of money for the Fund are
(a)
an amount of money equivalent to two and one half
percent- age points of the existing Value Added Tax
revenue;
(b)
an amount of money not exceeding twenty-five percent
of Annual Budget Funding Amount to be applied to
amortization and direct infrastructure expenditure;
(c)
repayment inflows of moneys on-lent by the Ministry
of Finance to government ministries, departments and
agencies or state-owned enterprises, for capital
project or infrastructure development;
(d)
proceeds from the disposal of state-owned equity
investments;
(e)
grants, donations, gifts and other voluntary
contributions to the Fund;
(f)
fees or other moneys earned by the Fund in pursuance
of its functions under this Act;
(g)
money that accrues to the Fund from investment made
by the Fund;
(h)
moneys borrowed and raised from local and
international capital market or from its affiliates;
(I)
money that may become lawfully payable to the Fund
or any other property that may become lawfully
vested in the Board for the Fund; and
(j) any other moneys that the Minister with the
approval of Parliament determines to be paid into
the Fund.
The sources of moneys under paragraphs (a)
and (b) of subsection (1) designated for the
Fund shall be due for payment into the Fund from the
1st of January 2015.
Bank Account of the Fund
6.
(1) Moneys for the Fund shall vest in the Board and
shall be paid into a bank account opened for the
purpose by the Board with the approval of the
Minister.
(2) The Minister shall, not more than thirty working
days following the end of each month, pay directly
from the Consolidated Fund into the bank account
opened under subsection (1), the proportions of the
Value Added Tax revenue and the Annual Budget
Funding Amount required to be paid into the Fund
under sections 5(a) and 5(b)
respectively.
Head Office and branches of the Fund
7. The Fund shall have its head office in Ghana and
may, where it considers necessary for the
performance of its functions, open branches within
or outside the country subject to the approval of
the Minister.
The Board and management of the Fund
Governing Body of the Fund
8.(1)
The governing body for the Fund is a Board
consisting of
(a)
a chairperson,
(b)
the Chief Executive Officer of the Fund, and
(c)
seven other persons at least three of whom are
women.
(2) The members of the Board shall be appointed by
the President in accordance with article 70 of the
Constitution.
(3) In making the appointments, the President shall
consider the integrity, knowledge, expertise and
experience of the members in matters relevant to the
functions of the Board.
Functions of the Board
9.
(1) The Board shall be responsible for the
attainment of the object of the Fund, the making of
the operational policy and general supervision of
the management and affairs of the Fund and such
other functions conferred upon it by any other
provision of this Act.
(2) For the purpose of subsection (1), the Board
shall
(a)
perform its functions and conduct its affairs in
accordance with sound investment and financial
standards and practice and the investment policy of
the Fund;
(b)
support the national policy and programmes related
to the Fund to achieve the object of the Fund;
(c)
ensure accountability of the Fund by defining
appropriate procedures for its management; and
(d)
in consultation with the Minister, perform any other
function that is incidental to the achievement of
the object of the Fund.
Duties and liabilities of members of the Board
10.
(1) A member of the 'Board has the same fiduciary
relationship with the Fund and the same duty to act
with loyalty and in good faith as a director of a
company incorporated under the Companies Act, 1963
(Act, 179).
(2) Without limiting subsection (1), a member of the
Board has a duty
(a)
to act honestly in the performance of the functions
of the member;
(b)
to exercise the degree of care and diligence in the
performance of the member's functions that a
reasonable person in that position would be expected
to exercise in the circumstances of the Fund;
(c)
not to use information acquired by virtue of the
member's position as a member of the Board so as to
gain, directly or indirectly, a benefit for the
member to the detriment of the Fund; and
(d)
not to make improper use of the member's position so
as to gain, directly or indirectly, a benefit for
the member or for any other person or cause loss to
the Fund.
(3) A member of the Board who contravenes
subsections 2(a) or (b) commits an offence
and is liable on summary conviction to a fine of not
less than fifty thousand penalty units and not more
than one hundred thousand penalty units.
(4) A member of the Board who contravenes subsection
2(c) or (d) commits an offence and is liable on
summary conviction to a fine of not less than fifty
thousand penalty units and not more than one hundred
thousand penalty units or to a term of imprisonment
of not less than five years and not more than ten
years or both.
Tenure of office of non-executive members
11.
(1) A non-executive member of the Board shall hold
office for three or five years.
(2) A non-executive member appointed for a five-year
term is not eligible for re-appointment.
(3) A non-executive member appointed for a
three-year term is eligible for re-appointment but
only for another three year term.
(4) The President shall appoint three of the
non-executive members for five years and four of the
non-executive members for three years.
(5) The tenure of a non-executive member shall be
specified in the letter of appointment.
(6) A non-executive member of the Board may at any
time resign from office by letter addressed to the
President through the chairperson.
(7) The chairperson of the Board may at any time
resign from office by letter addressed to the
President.
(8) A non-executive member of the Board who is
absent from three consecutive meetings of the Board
without reasonable cause, ceases to be a member of
the Board.
(9) The President may, by letter addressed to a
non-executive member, revoke the appointment of that
member.
(10) Where a non-executive member of the Board is,
for sufficient reason, unable to act as a member,
the chairperson shall determine whether the
inability will result in a declaration of a vacancy.
(11) Where there is a vacancy
(a)
under subsection (6), (7), (8) or section 13(2),
(b)
as a result of a declaration under subsection (10),
or
(c)
by reason of the death of a member
the chairperson shall notify the President of the
vacancy and the President shall appoint a person to
fill the vacancy.
(12) Where the circumstances under subsection (10)
apply to the chairperson, the Minister shall
determine whether the inability will result in a
declaration of a vacancy and shall notify the
President of the vacancy.
Meetings of the Board
12.
(1) The Board shall meet at least four times in a
year for the dispatch of business at the time and in
the place determined by the Chairperson'.
(2) The chairperson shall, at the request of not
less than one third of the membership of the Board,
convene an extraordinary meeting of the Board at the
place and time determined by the Chairperson within
seven days.
(3) The chairperson shall preside at meetings of the
Board and, in the absence of the chairperson, a
member of the Board elected by the members present
from among their number shall preside.
(4) The quorum for a meeting of the Board is five
members including four non-executive members and the
executive member or a greater number determined by
the Board in respect of a particular matter.
(5) Matters before the Board shall be decided by a
majority of the members present and voting and in
the event of an equality of votes, the person
presiding shall have a casting vote.
(6) The Board may. co-opt any person to attend a
Board meeting but that person shall not vote on a
matter for decision at the meeting.
(7) Except as otherwise provided by this Act, the
Board shall determine the procedures for its
meetings.
(8) The proceedings of the Board are not invalidated
by reason of a vacancy among the members or by a
defect in the appointment or qualification of a
member.
Disclosure of interest
13.
(1) A member of the Board who has an interest in a
matter for consideration shall
(a)
disclose the nature of the interest and the
disclosure shall form part of the record of
consideration of the matter; and
(b)
recuse himself or herself, and not participate in
the deliberations of the Board in respect of that
matter.
(2) A member ceases to be a member of the Board, if
that member
has an interest in a matter before the Board and
(a)
fails to disclose that interest, and
(b)
is present and participates in the deliberations of
the matter.
Establishment of Committees
14.
(1) The Board may establish committees consisting of
members of the Board or non-members, or both, to
perform a function.
(2) A committee of the Board may be chaired by a
non-member of the Board.
. Allowances
15.
Members of the Board and members of a committee of
the Board shall be paid allowances approved by the
Minister.
Disbursement from the Fund
16.
The moneys of the Fund shall be disbursed in
accordance with the policy guidelines of the Fund.
Application for funding
17.
(1) A sponsor of an infrastructure project that
satisfies the conditions required in the Policy
Guidelines of the Fund may apply to the
Fund for funding.
(2) An application for funding shall be in such form
as the Board may determine.
Administrative expenses of the Fund
18.
The administrative and other expenses related to the
management of the Fund shall be charged on the Fund
in consultation with the Minister
Tax exemption
19.
The Fund is exempt from payment of any form of tax
for the first five years of its operations.
Advisory Committee
Establishment of Advisory Committee
20.
(1) There is established by this Act an Advisory
Committee for the Fund comprising the following
members:
(a)
a chairperson who is the Minister responsible for
Finance,
(b)
the Governor of the Bank of Ghana,
(c)
the Director-General of the National Development
Planning Commission, and
(d)
two other persons from the private sector, one of
whom is a woman.
(2) The members of the Advisory Committee shall be
appointed by the President in accordance with
article 70 of the Constitution.
Functions of the Advisory Committee
21.
(1) The Advisory Committee shall advise the Board
within the confines of national policy guidelines on
infrastructure investment.
(2) The Advisory Committee shall, in the discharge
of its duties, observe the independence of the
Board.
Tenure of office of members of the Advisory
Committee
22.
(1) A member of the Advisory Committee, other than
the Minister, the Governor of the Bank of Ghana and
the Director-General of the National Development
Planning Commission, shall hold office for a period
of two years and is eligible for re-appointment.
(2) A member of the Advisory Committee other than
the Minister, the Governor of the Bank of Ghana and
the Director-General of the National Development
Planning Committee may at any time by letter
addressed to the President resign from office.
(3) A member of the Advisory Committee other than
the Minister, the Governor of the Bank of Ghana and
the Director-General of the National Development
Planning Commission, who is absent from three
consecutive meetings of the Advisory Committee
without reasonable cause, ceases to be a member of
the Advisory Committee and shall be immediately
replaced.
(4) The President may, by letter addressed to a
member other than the Minister, the Governor of the
Bank of Ghana and the Director-General of the
National Development Planning Commission, revoke the
appointment of the member.
(5) Where a member of the Advisory Committee is, for
sufficient reason, unable to act as a member, the
chairperson shall determine whether the inability
will result in a declaration of a vacancy.
(6) Where there is a vacancy
(a)
under subsection (3) and (4) or section 24(2),
(b)
as a result of a declaration under subsection (5),
or
(c)
by reason of the death of a member
the chairperson shall notify the President of the
vacancy and the President shall appoint another
person to fill the vacancy.
Meetings of the Advisory Committee
23.
(1) The Advisory Committee shall meet at least two
times in each year for the conduct of business at
the time and in the place determined by the
chairperson.
(2) The chairperson shall at the request in writing
by four or more members of the Advisory Committee
convene an extraordinary meeting of the Advisory
Committee within five working days after the receipt
of the request.
(3) The quorum at a meeting of the Advisory
Committee is three members of the Advisory
Committee.
(4) The chairperson shall preside at meetings of the
Advisory Committee and, in the absence of the
chairperson, a member elected by the members present
from among their number shall preside.
(5) Matters before the Advisory Committee shall be
decided by a majority of the members present and
voting and, in the event of an equality of votes,
the person presiding shall have a casting vote.
(6) The Advisory Committee may co-opt a person to
attend a meeting of the Advisory Committee but that
person shall not vote on a matter for decision at
the meeting.
(7) Except as otherwise provided by this Act, the
Advisory Committee shall determine the procedures
for its meetings.
(8) The proceedings of the Advisory Committee are
not invalidated by reason of a vacancy among the
members or by a defect in the appointment or
qualification of a member.
Disclosure of interest
24.
(1) A member of the Advisory Committee who has an
interest in a matter for consideration shall
(a)
disclose the nature of the interest and the
disclosure shall form part of the record of
consideration of the matter; and
(b)
recuse himself or herself and not participate in the
deliberations of the Committee in respect of that
matter.
(2) A member ceases to be a member of the Committee
if that member has an interest in a matter before
the Committee and
(a)
fails to disclose that interest, and
(b)
is present at and participates in the deliberations
of the matter.
Chief Executive Officer
25.(1)
The Fund shall have a Chief Executive Officer.
(2) The President shall, in accordance with article
195 of the Con- stitution, appoint the Chief
Executive Officer.
(3) The Chief Executive Officer shall hold office on
the terms and conditions specified in the letter of
appointment.
Functions of Chief Executive Officer
26.
(1) The Chief Executive Officer is responsible for
the day-to-day administration of the affairs of the
Fund and is answerable to the Board in the
performance of the functions of the Fund.
(2) The Chief Executive Officer shall ensure the
implementation of the decisions of the Board and
perform any other functions determined by the Board.
Appointment of other
staff
27.
(1) The President shall, in accordance with article
195 of the Constitution, appoint other staff that
are necessary for the proper and effective
performance of the functions of the Fund.
(2) The President may, in writing, delegate the
power of appointment in subsection (1) to the Board.
(3) Other public officers may be transferred or
seconded for the purposes of the Fund or may,
otherwise give assistance to the Fund.
(4) The Board, may on the recommendation of the
Chief Executive Officer, engage the services of
experts and consultants as determined by the Board.
(5) The Board may select asset managers to manage
the assets of the Fund.
(6) For the purpose of subsection (5), an asset
manager shall discharge duties on the basis of
(a)
a comprehensive assessment criteria;
(b)
policies and procedures developed from time to time
by the Fund including
(i) the portfolio, scope, prudence and
diversification of the Fund; and
(ii) the cost and regular reporting requirements
consistent with the object of the Fund.
Accounts and audit
28.
(1) The Board shall keep books of account and proper
records of the Fund in the form approved by the
Auditor-General.
(2) The Board shall submit the accounts of the Fund
to the Auditor- General for audit within three
months after the end of the financial year.
(3) The Auditor-General shall, not later than three
months after the receipt of the accounts, audit the
accounts and forward a copy of the audit report to
the Minister.
(4) In addition to the annual audit, other audits
may be conducted on selective basis by the
Auditor-General or by an auditor appointed by the
Auditor-General.
Annual report and other reports
29.
(1) The Board shall within one month after receipt
of the audit report, submit an annual report to the
Minister covering the activities and operations of
the Fund for the year to which the report relates.
(2) The annual report shall include the report of
the Auditor- General and a report on the performance
of the Fund relative to its statutory object.
(3) The Minister shall, within one month after the
receipt of the annual report, submit the report to
Parliament with such statements that the Minister
considers necessary.
(4) The Board shall also submit to the Minister any
other reports which the Minister may require in
writing.
Investment Policy Statements, codes of practice,
regulations and internal
guidelines
30.
(1) The Board shall, in consultation with the
Minister, issue an Investment Policy Statement in
pursuance of the object of the Fund.
(2) The Fund may develop, adopt and as appropriate
from time to time amend, revoke or supplement
appropriate codes of practice, regulations, internal
guidelines or procedures consistent with this Act,
and in furtherance of the object of the Fund.
(3) The Board shall publish the Investment Policy
Statement in the Gazette and in at least one
state owned daily newspaper.
(4) Where the Board amends or revokes the Investment
Policy Statement or part thereof, it shall publish
the amendment or revocation in the Gazette
and in at least one state owned daily newspaper.
Indemnity
31.
Subject to the Constitution, an action shall not be
brought against an officer or agent of the Fund for
an act done by that officer or agent in good faith
for the purpose of executing a provision of this
Act.
Regulations
32.
The Minister may, by legislative instrument, make
Regulations for the effective implementation of this
Act.
Interpretation
33.
In this Act, unless the context otherwise requires,
"Annual Budget Funding Amount" means the amount of
petroleum revenue allocated for spending in the
current financial year budget, provided for under
the Petroleum Revenue Management Act, 2011 (Act
815);
"Board" means the governing body established for the
Fund under section 8 of this Act;
"executive member" means a member of the Board who
is an officer of the Fund;
"Fund" means the Ghana Infrastructure Investment
Fund established under section 1;
"infrastructure projects" means capital expenditure
on projects including ports, roads, railway systems,
barges, communication equipment, hospitals,
irrigation systems, power systems, schools, oil and
gas systems and housing;
"Minister" means the Minister responsible for
Finance;
"non-executive member" means a member of the Board
who is not an officer of the Fund;
"Investment Policy Statement" means guidelines
issued by the Board, to be adhered to by the Fund in
respect of the investments of the Fund, and
published in accordance with section 30; and
"sponsor" includes a Government Ministry, Department
or Agency, a state-owned enterprise and a special
purpose vehicle.
Date of
Gazette notification: 22nd August, 2014.
GPCL, ASSEMBLY
PRESS, ACCRA. GPCLlA3 7l!42010'7/20 14
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