Government institutions seeking approval to undertake capital expenditure will face stricter investment planning requirements, as the Ministry of Finance moves to prevent public projects from bypassing appraisal and budgeting procedures.
The directive requires all covered entities and public institutions to ensure that proposed capital investment projects undergo the prescribed preparation, appraisal and planning processes before seeking commitment authorisation from the Minister for Finance.
Under the new requirement, institutions must demonstrate that projects have been properly assessed and included in their approved Public Investment Plans (PIPs) before they can obtain authorisation to proceed with capital expenditure procurement.
The Ministry warned that requests relating to projects that have not undergone the required appraisal processes will not be approved, tightening the conditions under which public institutions can secure financial commitments for infrastructure and other capital investments.
The directive, contained in a notice signed by Deputy Minister of Finance Thomas Nyarko Ampem on behalf of the Minister, is intended to enforce existing public investment management requirements and strengthen discipline in the use of public resources.
It is grounded in the Public Financial Management Act, 2016 (Act 921), and the Public Financial Management (Public Investment Management) Regulations, 2020 (L.I. 2411).
The Ministry said its Guidelines for the Preparation and Appraisal of Projects and the Development of the Public Investment Plan, issued under Section 33(5) of Act 921 and Regulations 25 to 27 of L.I. 2411, provide the procedures institutions must follow when developing and assessing proposed investments.
The requirement places greater emphasis on the quality of project preparation before government institutions enter procurement and financial commitment stages.
For public finances, the implications are significant. Capital projects that proceed without adequate appraisal can expose government to poorly assessed costs, implementation difficulties and inefficient allocation of limited budgetary resources.
By linking commitment authorisation to approved investment plans, the Ministry is seeking to ensure that proposed projects are assessed and prioritised within a formal planning framework before public funds are committed.
The directive also places responsibility on ministries, departments, agencies and other covered entities to align their investment proposals with approved plans rather than pursue capital expenditure outside established procedures.
For contractors and businesses seeking government procurement opportunities, the requirement could also influence the timing of project approvals, procurement processes and the release of public contracts.
Institutions that fail to complete the required appraisal and planning processes risk having their commitment authorisation requests rejected, potentially delaying projects until the necessary requirements are satisfied.
The Ministry has therefore urged all covered entities to ensure that their proposed capital investments are duly reflected in their approved Public Investment Plans before submitting applications for commitment authorisation.
The move reinforces the importance of project selection and financial planning in determining how effectively government investment translates into infrastructure, public services and broader economic returns.
