Official Portal for MLGRD
Programmes & Projects

Local Government Capacity Support Project (LGCSP)

Local Government Capacity Support Project:
-          Is a us$175.0 million government of Ghana-world bank initiative targeting 46 metropolitan and municipal assemblies (MMAs).
-          Is to be implemented over a five year period.
-          Is modeled on the performance akin to the Functional organizational assessment tool (FOAT)/District development Facility (DDF) initiative
LGCSP seeks to:
-          Strengthen the metropolitan and municipal assemblies (MMAs) for accountable local governance and improved service delivery,
-          Provide an integrated package of support to build the capacity of the MMAs.
-          Build on the incentive-driven approach to enhancing MMA performance through the district development facility (DDF) PERFORMANCE grant,
-          Target key reform areas namely: budgeting, reporting, and auditing systems, revenue management, asset management; and social accountability
-          The objective of this project are to support the government efforts to:
-          Strengthen its intergovernmental fiscal framework;
-          Strengthen local public financial management and accountability for improved infrastructure and services in MMAs; and
-          Improve its citizen’s engagement with MMAs and their perceptions of urban management.
-          Ministry of local government and rural development(MLGRD)
-          Ministry of finance and economic planning (MOF)
-          Local government service secretariat (LGSS)
Component 1: Strengthening The Fiscal Framework For Decentralization
This component will support the establishment of a predictable and transparent fiscal framework for local governance, through assisting MOF to:
-          Develop the intergovernmental fiscal decentralization framework;
-          Introduce local government public financial management reforms in five key areas (Budgeting, reporting, auditing, revenue and asset management ) and manage the overall system of intergovernmental fiscal relations; and
-          Support the management capacity of the fiscal decentralization unit of MOFEP through the provision of technical advisory services and training.
Component 2: Enhancing Decentralized Urban Service Delivery
This component will support selected MMAs to improve their management capabilities in the identified key reform areas in component 1, through two subcomponents:
-          Performance based annual urban development grant (UDG) TO 46 MMAs to finance prioritized development projects within their medium term development plans; and
-          Strengthening the capacity of participating local governments through technical advisory services and training to improve their performance in the five key public financial management reform areas.
Component 3: Stimulating Demand For Accountable Governance And Services Delivery.
This component will:
-          Generate civil society demand for financial information from MMAs (e.g. budgets and audits);
-          Foster more effective engagement of civil society with assemblies on this information (i.e. helping civil society to understand it and provide a forum for exchange and debate around the information);
-          Strengthen the capacity and engagement of citizen  representatives on the budget and service delivery issues; and
-          Assist the development of media network with strengthen knowledge and capacity to report on local government financial management issues.
Component 4: Institutional And Project And Management Support
-          Component 4 will provide support to MLGRD in fulfilling its role in supporting the decentralization process Specifically related to fiscal decentralization and urban development.


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Ghana, West Africa
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