No Approval For Capital Projects Without Appraisal- Finance Ministry to MDAs
The Ministry of Finance has warned that requests for Commitment Authorisation for capital expenditure for Covered Entities and Public Institutions will not be honoured unless the project goes through the prescribed public investment planning processes.
In a circular dated October 30, 2026, and signed by the Deputy Minister for Finance, Thomas Nyarko Ampem, the Ministry drew attention to the requirement to comply with the applicable Public Investment Management (PIM) framework in respect of capital expenditure (CAPEX) projects prior to seeking Commitment Authorisation from the Minister for Finance.
Citing the Public Financial Management Act, 2016 (Act 921) and the Public Financial Management (Public Investment Management) Regulations, 2020 (L.I. 2411), it stated that Public Institutions are required to comply with the prescribed processes for the preparation, appraisal and inclusion of public investment projects in their respective Public Investment Plans (PIPs).
The Ministry’s Guidelines for the Preparation and Appraisal of Projects and the Development of the Public Investment Plan were issued pursuant to Section 33(5) of Act 921 and Regulations 25 to 27 of L.I. 2411.
Accordingly, the Ministry reminded all Covered Entities and Public Institutions that requests for Commitment Authorisation in respect of Capital Expenditure must relate to projects that form part of the institution’s approved Public Investment Plan (PIP).
The Ministry said this requirement is expressly included among the Ministry’s requirements for processing Commitment Authorisation applications.
Consequently, requests for Commitment Authorisation for CAPEX procurements that have not been appraised will not be honoured.
Institutions were therefore to ensure that proposed capital investment projects have gone through the applicable public investment planning requirements, are approved by this Ministry, and are duly reflected in their PIPs before submitting requests for Commitment Authorisation to the Ministry.
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