SIGNING OF THE 2ND MULTI DONOR BUDGET SUPPORT FRAMEWORK MEMORANDUM

In May 2003 the Government of Ghana and nine of its Development Partners signed the first Multi Donor Budget Support (MDBS) Framework Memorandum, a document that contains jointly agreed underlying principles, rules and responsibilities.

The MDBS Development Partners have supported the Government of Ghana throughout these five years with an annual contribution of about US$300 million in loans and grants. The MDBS arrangement has proven to be the most aligned, predictable and cost effective aid modality.

Today, the Government of Ghana signed a 2nd Multi Donor Budget Support Framework Memorandum with eleven (11) participating partners namely; African Development Bank, Canada, Denmark, European Commission, France, Germany, Japan, Netherlands, Switzerland, UK and World Bank. Though UNDP and USAID are not signatories to the Framework Memorandum, they are observers in the MDBS Group in Ghana, in line with the Paris Declaration on harmonisation of arrangements, procedures as well as sharing of analysis.

The new document reflects international standards as well as evolved practices of Multi Donor Budget Support in Ghana and it seeks to renew the partnership between the Government and its MDBS Partners. It also seeks to further strengthen the Public Financial Management Systems which underpins the principles of the MDBS program.