AFRICAN DEVELOPMENT FUND GHA/PTTR/2001/01 Language: English

Original: French

APPRAISAL REPORT

TEMA-AFLAO REHABILITATION ROAD PROJECT (AKATSI-AFLAO SECTION)

REPUBLIC OF GHANA

NB: This document contains errata or corrigenda (see Annexes)

COUNTRY DEPARTMENT OCDW WEST REGION JULY 2001

SCCD : N.G.

TABLE OF CONTENTS Page

PROJECT INFORMATION SHEET, CURRENCY AND MEASURES, LIST OF TABLES, LIST OF ANNEXES, LIST OF ABBREVIATIONS, BASIC DATA SHEET, PROJECT LOGICAL FRAMEWORK, EXECUTIVE SUMMARY (i–ix) 1. ORIGIN AND HISTORY OF THE PROJECT ....................................................................................... 1 2. THE TRANSPORT SECTOR ................................................................................................................... 2

2.1 THE TRANSPORT SYSTEM ......................................................................................................................... 2 2.2 TRANSPORT POLICY, PLANNING AND COORDINATION .............................................................................. 3

3. THE ROAD SUB-SECTOR....................................................................................................................... 5 3.1 THE ROAD NETWORK ............................................................................................................................... 5 3.2 VEHICLE FLEET AND TRAFFIC................................................................................................................... 5 3.3 THE ROAD TRANSPORT INDUSTRY............................................................................................................ 6 3.4 ROAD ADMINISTRATION AND TRAINING ................................................................................................... 6 3.5 ROAD FINANCING ..................................................................................................................................... 7 3.6 ROAD ENGINEERING AND CONSTRUCTION................................................................................................ 8 3.7 ROAD MAINTENANCE ............................................................................................................................... 8

4. THE PROJECT........................................................................................................................................... 9 4.1 PROJECT CONCEPT AND RATIONALE......................................................................................................... 9 4.2 PROJECT AREA AND PROJECT BENEFICIARIES......................................................................................... 12 4.3 STRATEGIC CONTEXT.............................................................................................................................. 14 4.4 OBJECTIVES ............................................................................................................................................ 14 4.5 PROJECT DESCRIPTION............................................................................................................................ 15 4.6 ENVIRONMENTAL IMPACTS..................................................................................................................... 16 4.7 SOCIAL IMPACT....................................................................................................................................... 17 4.8 PROJECT COSTS....................................................................................................................................... 18 4.9 SOURCE OF FINANCING AND EXPENDITURE SCHEDULE........................................................................... 19

5. PROJECT IMPLEMENTATION........................................................................................................... 21 5.1 EXECUTING AGENCY .............................................................................................................................. 21 5.2 INSTITUTIONAL ARRANGEMENT.............................................................................................................. 21 5.3 SUPERVISION AND IMPLEMENTATION SCHEDULE.................................................................................... 22 5.4 PROCUREMENT ARRANGEMENTS ............................................................................................................ 23 5.5 DISBURSEMENT ARRANGEMENTS ........................................................................................................... 24 5.6 MONITORING AND EVALUATION............................................................................................................. 24 5.7 FINANCIAL REPORTING AND AUDITING .................................................................................................. 25 5.8 AID CO-ORDINATION .............................................................................................................................. 26

6. PROJECT SUSTAINABILITY AND RISKS ........................................................................................ 26 6.1 RECURRENT COST................................................................................................................................... 26 6.2 PROJECT SUSTAINABILITY ...................................................................................................................... 26 6.3 CRITICAL RISKS AND MITIGATING MEASURES........................................................................................ 27

7. PROJECT BENEFITS ............................................................................................................................. 28 7.1 ECONOMIC ANALYSIS ............................................................................................................................. 28 7.2 IMPACT ON CROSS-CUTTING ISSUES AND AREAS OF CONCERN ............................................................... 29 7.3 SENSITIVITY ANALYSIS........................................................................................................................... 30

8. CONCLUSION AND RECOMMENDATIONS .................................................................................... 31 8.1 CONCLUSIONS......................................................................................................................................... 31 8.2 RECOMMENDATIONS AND CONDITIONS FOR LOAN APPROVAL ............................................................... 31

This Report has been prepared by Messrs. R. A. Sherman, (Civil/Transport Engineer, OCDW.6, Ext. 4353) and J. K Nyasulu, (Transport Economist, OCDW.6, Ext 4613), following a mission to Ghana from 23rd June to 7th July 2001. Any matters relating to this report may be referred to the Authors or Mr. H. Kamoun, (Manager, OCDW.6 Ext. 4815)

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AFRICAN DEVELOPMENT FUND 01 B. P. 1387 ABIDJAN 01

Tel: 20 20-44-44

PROJECT INFORMATION SHEET

DATE JULY 2001 The information given hereunder is intended to provide some guidance to prospective suppliers, contractors, consultants and all persons interested in the procurement of goods, works and services for projects approved by the Board of Directors of the Bank Group. Further detailed information and guidance may be obtained from the Executing Agency of the Borrower. 1. COUNTRY : Ghana 2. PROJECT TITLE : Tema - Aflao Road Rehabilitation (Akatsi – Aflao Section) 3. LOCATION : Greater Accra and Volta Regions 4. BORROWER : The Republic of Ghana 5. EXECUTING AGENCY : Ghana Highway Authority (GHA)

P.O. Box 1641, Accra, Ghana Fax: 233-21-66 20 51/66-55-71 6. PROJECT DESCRIPTION : The project consists of: A. WORKS

The Akatsi – Aflao (48-km) component consists of rehabilitating a 41-kilometers single carriageway trunk road and construction of a 7-kilometer by-pass.

B. SERVICES (i) The supervision consulting services

period would be divided into three phases. The phases are: (i) the design review and tender, (ii) supervision and (iii) defect liability phases. Each phase would require different level of staffing.

ii) Consulting services for conducting the project auditing;

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7. PROJECT TOTAL COST : UA 21.15 million i) Foreign Exchange : UA 15.03 million ii) Local Currency Cost : UA 6.12 million 8. BANK GROUP FINANCING ADF : UA 14.70 million 9. OTHER SOURCES OF FINANCING ECOWAS : UA 4.82 million Government of Ghana : UA 1.63 million 10. DATE OF LOAN APPROVAL : November 2001 11. ESTIMATED STARTING DATE AND DURATION : August 2002 to April 2006 (45 months) 12. PROCUREMENT OF GOODS

AND SERVICES : The Procurement of Civil Works will be carried out using International Competitive Bidding in accordance with ADF rules of procedures.

13. CONSULTANCY SERVICES REQUIRED

AND STAGE OF SELECTION : Consulting services for supervision of construction works and audit services. will be procured on the basis of a short list of consulting firms. The selection process for supervision of works will be based on combined Technical Quality and Price Combination; whereas that of audit services will be procured on the based on comparability of technical proposals and the technical services and selection made on the basis of Lowest Price.

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CURRENCY AND MEASURES

Currency Equivalents

(July 2001)

National Currency Unit = Cedi 1 UA = Cedi 8958.79 1 UA = US$ 1.24565

Fiscal Year

January 1 – December 31

Weights and Measures

1 metric ton (t) = 2,205 pounds (lbs). 1 kilogram (kg) = 2.2 lbs. 1 meter (m) = 3.281 ft 1 foot (ft) = 0.305 m 1 kilometer (km) = 0.621 mile 1 mile (mi) = 1.609 km 1 square kilometer (km2) = 0.386 square mile (mi2)

LIST OF TABLES No. TITLE Page 3.1 GRF Revenues from Various Sources 7 4.1 Summary of Project Cost Estimates by ADF Component 19 4.2 Summary of ADF Project Cost by Expenditure Category 19 4.3 ADF Project Sources of Finance 20 4.4 ADF Project Category of Expenditure by Source of Financing 20 4.5 ADF Project Expenditure Schedule by Category 20 4.6 ADF Project Expenditure Schedule by Sources of Finance 21 5.1 Proposed Project Implementation Plan 22 5.2 Summary of Procurement Arrangement 23 6.1 Road Fund Projections Compared With Annual Accrual 27

LIST OF ANNEXES

No. TITLE Number of pages 1 Project Location Map 1 2 Organizational Chart (GHA) 1 3 Environmental 2 4 Provisional List of Goods and Services 1 5 Project Implementation Plan 1 6 EIRR and Sensitivity Tests Results Summary 2

LIST OF ABBREVIATIONS

iv AADT Annual Average Daily Traffic AASHTO American Association of State and Highway Transport Officials ADF African Development Fund AFD French Development Agency BADEA Arab Bank for Economic Development in Africa DANIDA Danish International Development Agency DFR Department of Feeder Roads DUR Department of Urban Roads ECOWAS Economic Community Of West African States EIRR Economic Internal Rate of Return ERP Economic Recovery Program ESAL Equivalent Standard Axle Load GEPA Ghana Environmental Protection Agency GHA Ghana Highway Authority GOG Government of Ghana GPN General Procurement Notice GPRTU Ghana Private Road Transport Union GRC Ghana Railway Corporation GROTRPC Ghana Road Transport Council HDM Highway Development Model IDA International Development Agency JBIC Japan Bank for Investment Cooperation KIA Kotoka International Airport KFW Kreditanstalt Fur Wiederaufbau MFEP Ministry of Finance and Economic Planning MOF Ministry of Finance MRH Ministry of Roads and Highway MTC Ministry of Transport and Communications NFRRMP National Feeder Roads Rehabilitation and Maintenance Project OECF Overseas Economic Cooperation Fund OPEC Organization of Petroleum Exporting Countries PIP Public Investment Program ROSSIP Road Sub-sector Investment Program RSDP Road Sector Development Program RTIM Road Transport Integrated Model TAF Technical Assistance Fund

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...

Year Ghana Africa Developing DevelopedCountries Countries

Basic IndicatorsArea ( '000 Km²) 239 30,061 80,976 54,658Total Population (millions) 1999 19.7 765.6 4,793.2 1,185.2Urban Population (% of Total) 1999 38.0 37.1 39.4 75.8Population Density (per Km²) 1999 82.5 25.5 59.2 21.7

SPGNP per Capita (US $) 1999 390 684 1,250 25,890NYLabor Force Participation - Total (%) 1999 47.5 43.3 … …

Labor Force Participation - Female (%) 1999 47.7 35.0 … …Gender -Related Development Index Value 1998 0.6 0.483 0.634 0.916Human Development Index (Rank among 174 countries) 1998 129 n.a. n.a. n.a.Population Living Below $ 1 a Day (% of Population) 1995 ... 45.0 32.2 …Demographic Indicators

SPPopulation Growth Rate - Total (%) 1999 2.7 2.4 1.6 0.3Population Growth Rate - Urban (%) 1999 3.8 4.5 2.8 0.6

SLPopulation < 15 years (%) 1999 43.5 42.7 32.8 18.5Population >= 65 years (%) 1999 3.1 3.2 5.0 14.0Dependency Ratio (%) 1999 79.7 86.1 61.0 48.6Sex Ratio (per 100 female) 1999 99.0 99.4 103.3 94.8Female Population 15-49 years (millions) 1999 4.5 181.1 151.8 297.2Life Expectancy at Birth - Total (years) 1999 61.6 52.7 64.3 75.5Life Expectancy at Birth - Female (years) 1999 63.4 53.5 66.0 79.2

SI Crude Birth Rate (per 1,000) 1999 36.2 36.3 23.4 10.9SPCrude Death Rate (per 1,000) 1999 8.8 13.7 8.4 10.3SPInfant Mortality Rate (per 1,000) 1999 59.7 76.4 57.6 8.9

Child Mortality Rate (per 1,000) 1999 86.2 116.6 79.8 10.2SPMaternal Mortality Rate (per 100,000) 1990-96 740 698 491 13SHTotal Fertility Rate (per woman) 1999 4.8 4.8 2.8 1.6SHWomen Using Contraception (%) 1990-99 22.1 … 56.0 70.0SEHealth & Nutrition IndicatorsSEPhysicians (per 100,000 people) 1992-97 6 35 78 287SENurses (per 100,000 people) 1992-97 72 107 98 782

Births attended by Trained Health Personnel (%) 1992-98 44 38 58 99Access to Safe Water (% of Population) 1992-98 56 58 72 100Access to Health Services (% of Population) 1992-98 ... 64 80 100Access to Sanitation (% of Population) 1990-97 32 58 44 100Percentage of Adults (aged 15-49) Living with HIV/AIDS 1997 2.4 5.7 … …Incidence of Tuberculosis (per 100,000) 1997 59 201 157 24Child Immunization Against Tuberculosis (%) 1997 72 72 82 93Child Immunization Against Measles (%) 1997 59 64 79 90

NYUnderweight Children (% of children under 5 years) 1990-97 27 26 31 …Daily Calorie Supply 1998 2,586 2,439 2,663 3,380

NEPublic Expenditure on Health (as % of GDP) 1993-98 1.6 2.0 1.8 6.3NYEducation IndicatorsNY Gross Enrolment Ratio (%)

Primary School - Total 1996 75.0 80.0 100.7 102.3BN Primary School - Female 1996 69.8 73.4 94.5 101.9DT Secondary School - Total 1996 30.9 29.3 50.9 99.5DT Secondary School - Female 1996 24.0 25.7 45.8 100.8DTPrimary School Female Teaching Staff (% of Total) 1990-97 34.4 40.9 51.0 82.0DTAdult Illiteracy Rate - Total (%) 1999 29.8 38.8 27.2 1.3

Adult Illiteracy Rate - Male (%) 1999 20.7 30.7 19.5 0.9Adult Illiteracy Rate - Female (%) 1999 38.6 48.2 35.0 1.7

DTPercentage of GDP Spent on Education 1990-97 4.2 3.5 3.9 5.9Environmental IndicatorsLand Use (Arable Land as % of Total Land Area) 1998 15.8 5.9 9.9 11.6Annual Rate of Deforestation (%) 1990-95 1.3 0.7 0.4 -0.2Annual Rate of Reforestation (%) 1981-90 2.0 4.0 … …Per Capita CO2 Emissions (metric tons) 1996 0.2 1.1 2.1 12.5Source : Compiled by the Statistics Division from ADB databases; UNAIDS; World Bank Live Database and United Nations Population Division.

COMPARATIVE SOCIO-ECONOMIC INDICATORSGHANA

Population Growth Rate (%)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

1991 1992 1993 1994 1995 1996 1997 1998 1999

Ghana Africa

GNP Per Capita ( US $ )

0

100

200

300

400

500

600

700

800

1991 1992 1993 1994 1995 1996 1997 1998 1999

Ghana Africa

Life Expectancy at Birth ( Years )

52

52

52

53

53

53

53

1991 1992 1993 1994 1995 1996 1997 1998 1999

#REF! Africa

Infant Mortality Rate ( Per 000 )

0

20

40

60

80

100

1991 1992 1993 1994 1995 1996 1997 1998 1999

Ghana Africa

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PROJECT LOGICAL FRAMEWORK

GHANA: TEMA-AFLAO ROAD REHABILITATION PROJECT

PREPARED BY R. A. SHERMAN/J. K. NYASULU August 2001

Narative Description (ND) Means of Verification(MV)Verifiable indicators (OBVI) Assumptions/Risks

1.Sector Objective 1.1 to provide an integrated, well-

managed, viable and sustainable transport infrastructure and services meeting national poverty reduction and ECOWAS regional integration goals into the 21st century in order to establish a safe, reliable, effective and efficient movement of people and goods.

1.1 At least 25 % increase in the volume of trade by year 2005 1.2 Overall growth of 7% in traffic by year 2005

1.1 National Statistics

2. Project Objectives 2.1.. The objective of the project is to promote regional integration as well as contribute towards the Government’s goal of poverty reduction and economic development by reducing the travel time and vehicle operating cost, resulting in reduced road user costs for both passengers and freight..

2.1. Reduction by 20% in travel time by year 2005 on the project road. 2.2 Road User cost is reduced by 20% by year 2005 2.3 An average design speed of 100 km/hr is observed on the trunk road by year 2005.

2.1 Statistics from Ministry of Roads and Highways 2.2 Statistics from Ministry of Transport and Communications.

2.1 Adequate maintenance of the trunk road. 2.2 Government commitment to provide a sustainable environment for the road sector.

3. Output 3.1 The Tema-Aflao (Akatsi-Aflao

section) Road will be a newly rehabilitated 41-km and newly constructed 7-km by-pass road with 5-cm asphalt concrete surface, width of 7.3-m and 2.5-m surface dressed shoulders.

3.1 41-Km of newly rehabilitated and 7-km newly constructed single carriageway asphalt concrete road built by year 2005.

3.1 Quarterly Progress reports 3.2 Supervision mission reports 3.3. Final Report and PCRs

3.1 Government commitment to implement and adequately maintain the trunk road.

4. Activities SUPERVISION 4.1 Tema-Aflao (Akatsi-Aflao section) Road AUDITING 4.2 Tema-Aflao (Akatsi-Aflao section) Road

CIVIL WORKS 4.3 Tema-Aflao (Akatsi-Aflao section) Road

TOTAL

4.1 Signed Contract 4.2 Loan Agreement Signed 4.3 Government of Ghana Budget contribution

4.1 UA 1.73 million 4.2 UA 0.04 million

4.3 UA 19.38 million

UA 21.15 million

SOURCES OF FINANCING MILLION UA

FE LC TOTAL

ADF 14.70 0.00 14.70 ECOWAS 0.33 4.49 4.82. GOG 0.00 1.63 1.63 TOTAL 15.03 6.12 21.15

4.4 Technical and Audit Reports 4.5 Disbursement ledger 4.6 Bank Supervision

4.1 Government will timely sign the loan and fulfil the loan conditions 4.2 Government will not cancel the loan 4.3 Availability of funds for implementing the project 4.4 Payment for invoices are not delayed 4.5 Government will make timely payment of counterpart local funds 4.6 There will be effective follow-up by the Bank, the Consultant and Government

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EXECUTIVE SUMMARY

1. PROJECT BACKGROUND 1.1 When the Government of Ghana (GOG), in 1983, launched its Economic Recovery Program (ERP), it was clearly recognized that removing transport bottlenecks and improving transport efficiency were crucial to obtaining an adequate supply response from the ERP process. Thus, under the ERP, Ghana undertook, with considerable support from IDA and other donors, a program of emergency repairs and phased rehabilitation of its transport sector, and initiated institutional reforms that have helped avert further deterioration of the transport system. Since 1996, the Government of Ghana has adopted an integrated sector-wide investment approach for the period 1996-2000 for a sustainable development of the transport sector. Subsequently, it has embarked on a rehabilitation program for all major roads that provide the basic infrastructure for the country’s major production areas. 1.2 The Tema-Aflao Road is an important international road in the Southeast of Ghana, forming part of the Trans-West African Highway. The area of influence is in the form of a triangle, formed by the Tema-Ho, Ho-Aflao trunk roads and the coastline Tema-Aflao. The triangle covers eight political/administrative districts in the Greater Accra and Volta Regions. The road links Ghana with her eastern ECOWAS trading partner-countries, especially Togo, Benin, Nigeria and Niger. It is in this respect that the Tema Aflao Road project proposal has focussed specifically on the impact the project will have on Regional Integration and Cooperation as its main cross-cutting theme. The road has deteriorated so much that it imposes serious traveling difficulties, high transport costs and safety problems. These problems have contributed to reduced agricultural production and industrial activities and also constrain the development of the tourist industry that could otherwise facilitate socio-economic development and reduce poverty. 1.3 The Bank Group together with other donors including World Bank supports Government’s Road Sub-sector Investment Program. The World Bank-funded Feasibility and Detailed Design studies for the Tema-Aflao were successfully completed in 1993. As part of this program, the Feasibility Studies have been updated and the Detailed Engineering Designs have been reviewed with funding from the KFW. In addition, Environmental Impact Assessment Study and Gender/Poverty Reduction Studies have been conducted by the Bank through bi-lateral funding from the Government of the People’s Republic of China. The Bank has made provision for participation in financing of the project implementation recommended by the study. The project has been classified as Category II, indicating that adverse environmental effects are associated with the project and the appropriate mitigation measures should be applied during the project implementation. This appraisal report emanates from a Bank appraisal mission to Ghana in June 2001. 2. PURPOSE OF THE LOAN The ADF loan of UA 14.70 million represents 20.5% of the total project cost of UA 71.71 million. The ADF loan will be used to finance 28.36% of the foreign exchange (UA 51.84 million) of the entire project. The Loan amount of UA14.70 million also represents 69.5% of the ADF component cost of UA 21.15 million. The loan will be used to finance 97.8% of the foreign exchange (UA 15.03 million) of the ADF component. 3. SECTOR GOAL AND PROJECT OBJECTIVE

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The current goal set by the transport sector is to provide an integrated, well-managed, viable and sustainable transport infrastructure and services meeting national poverty reduction and ECOWAS regional integration goals into the 21st century in order to establish a safe, reliable, effective and efficient movement of people and goods.

The objective of the project is to promote regional integration as well as contribute towards the Government’s goal of poverty reduction and economic development by reducing the travel time and vehicle operating cost, resulting in reduced road user costs for both passengers and freight. 4. BRIEF DESCRIPTION OF THE PROJECT’S OUTPUTS The project outputs will consist of the following: The 166-km road has been divided into two main Components as follows: Section 1: Tema- Akatsi (118-km), Section 2 (ADF Section): Akatsi-Aflao (48Km). 5. PROJECT COST The total project cost, net of customs duties and taxes, has been estimated at UA 71.71 million including UA 51.84 million in foreign exchange and UA 19.87 million as local cost. Whereas that of the ADF section is UA 21.15 million including UA 15.03 million in foreign exchange and UA 6.12 million as local cost. 6. SOURCES OF FINANCE The project is divided into two parallel financed sections. One section (48-km) will be co-financed by the ADF, ECOWAS and the Government of Ghana, and the other (118-km) by the KFW and the Government of Ghana. The Bank will make available UA 14.70 million for the project. This amount represents 20.50% of the total project cost and 69.50% of the ADF project. The ADF loan will be used towards financing 28.36% of the total project foreign cost. KFW is expected to contribute UA 47.81 million and ECOWAS an amount of UA 4.82 million for the project. The Government of Ghana contribution will be UA 4.38 million. The ADF will finance the total of the cost of its project audit, along with 100% and 69.3%of the foreign exchange of the its project supervision and civil works respectively. The ADF contribution to the foreign cost of its project will be UA 14.70 million. 7. PROJECT IMPLEMENTATION The project consulting services and works contracts for the ADF section will span over an estimated period of (50) months. The executing agency will be the Ghana Highway Authority under the supervision of the Ministry of Roads and Highways. 8. CONCLUSIONS AND RECOMMENDATIONS 8.1 CONCLUSIONS The Tema-Aflao Road, which commences at the Tema Junction east of Accra in the Greater Accra Region and ends at Aflao on the Togo border in the Volta Region is considered as an

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important international road in the South–east of Ghana, forming part of the Trans-West African Highway. The road links Ghana with her ECOWAS trading partner-countries, especially Togo, Benin, Nigeria and Niger. The road has deteriorated so much that it imposes high transport and user costs, hence retards regional economic cooperation and integration. The feasibility, environmental and detailed engineering design studies that were done for the project road have proven that the project is economically, environmentally and technically sound. Consequently, the rehabilitation of the Tema – Aflao Road, which is included in the Government’s Road Sector Development Program, has the support of the Donor Community active in the sector in Ghana. The Road Sector Investment Program is part of the Comprehensive Development Framework, which has been developed with a view to assisting the Government implement its Vision 2020. The economic analysis has determined that the implementation of the project is economically viable. The project will enhance the flow of regional and inter-regional traffic and trade, and reduce road user costs, thereby strengthening regional economic integration. The road safety measures that will be put in place will enhance safety standards on the project road. The project will also facilitate easier access by the farmers and traders to markets that will generate income hence augment the Government’s efforts in achieving economic development and reducing poverty 8.2 RECOMMENDATIONS It is recommended that a loan not exceeding UA 14.70 million from ADF resources be granted to the Government of Ghana for the purpose of implementing the project as described in this report subject to the conditions specified in the loan agreement.

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1. ORIGIN AND HISTORY OF THE PROJECT 1.1 The Government of Ghana (GOG) for the past decade has been implementing road improvement programs as part of the Government’s transport policy. The program has involved periodic and medium term maintenance as well as rehabilitation and reconstruction of rural, trunk and urban infrastructure. The importance attached to the rehabilitation of the road network is a result of Government’s recognition that with an improved infrastructure, vehicle operating costs and long waiting and travel times would be reduced and transport services would be improved, with consequent reduction in poverty and developmental impact in all parts of the hinterland. The Tema Aflao Road project, located in the south-east of Ghana (Annex 1), will specifically enhance the impact that the road would have on Regional Integration and Cooperation between Ghana and the rest of ECOWAS member states. 1.2 Since 1996, the road sub-sector of the Ministry of Roads and Transport has been implementing the policy reforms and the road investment rolling programme-the Road Sub-Sector Investment Programme (ROSSIP). The ROSSIP is currently driven by the Highway Sector Investment Programme (HSIP) that is scheduled for completion in December 2001. The Road Sector Development Program, which was approved in July 2001, would succeed the HSIP starting January 2002 to 2005. The ROSSIP is financed from both local and external sources. The local funding is from the central government’s Consolidated Fund and the Road Fund. External resources are in the form of grants, concessional loans, and non-concessional credits accruing from bilateral and multilateral donors. 1.3 The World Bank-funded Feasibility and Detailed Design studies for the Tema-Aflao Road (Annex 1) were successfully completed in 1993. As part of ROSSIP, the Feasibility Studies were updated in 1998 and the Detailed Engineering Designs have been reviewed in 2001 with funding from the KFW. In addition, Environmental Impact Assessment Study and Gender/Poverty Reduction Studies have been conducted by the Bank with bi-lateral funding from the Government of the People’s Republic of China. The Bank has made provision for participation in financing of the project implementation recommended by the study. The project has been classified as category II, indicating that associated environmental adverse effects are minor and will be mitigated during the project implementation. 1.4 This appraisal report is based on the feasibility and detailed engineering reports prepared by the Consultants, documents prepared by the Ghana Highways Authority (GHA), discussions held with Ministries/Agencies of GOG, as well as information/data gathered by the Bank appraisal mission to Ghana in June 2001.

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2. THE TRANSPORT SECTOR 2.1 The Transport System 2.1.1 The transport system in Ghana constitutes the following: (i) a road network of about 40,112-km; (ii) a railways network of about 950-km; (iii) air transport services consisting of one international and four domestic airports and (iv) a maritime service with two major seaports, and (v) a small 415-km inland water transport facility. Roads are the predominant mode of transportation currently accounting for about 94% of freight and 97% of passenger traffic movement. There are no viable alternatives to road other than rail for the movement of bulk commodities from collection centers to the ports. However, the railway has limited coverage and inland waterway transport is limited to the Volta River. 2.1.2 In the 1970s and early 1980s, transport infrastructure, which plays a key role in the movement of people, as well as agricultural and industrial products, deteriorated into very poor conditions due to prolonged neglect of maintenance and rehabilitation. This resulted in high transport costs thus adversely affecting the whole economy. Rehabilitation of the infrastructure undertaken by the GOG under the Economic Recovery Program (ERP) has resulted in an improvement of the road network. However, much remains to be done in rehabilitating the transport system and correcting institutional deficiencies. Roads 2.1.3 Ghana has a total road network of approximately 40,112-km spreading over an area of 239,460 km2. Due to inadequate maintenance in the past, a substantial backlog of road maintenance works has developed that includes not only periodic and routine maintenance but also rehabilitation works. Considering the importance of the road network to the country’s economy, the Government of Ghana, in 1985, began a system of 5-years investment program in the road sub-sector that has resulted in an increase in the quality of the road network. Further information on roads is given in Chapter 3. Railways 2.1.4 The Ghana Railway Corporation (GRC) operates a network of about 950-km of railways. The three main lines are the Western Region line (Takoradi port to Kumasi including the Dunkwa to Awaso Branch), the Eastern Region line (Accra to Kumasi including the Accra to Tema Branch), and the Central line (Huni Valley to Kotoku Junction including theAchiasi Junction to Kade Branch). An estimated 0.615 million passengers and 1.158 million tons of freight were carried by GRC in 2000, representing a decrease of 58.2% and an increase of 19% respectively from the 1999 aggregate data. Inadequate maintenance facilities, rolling stock and spare parts along with insufficient revenues from commercial traffic have negatively affected the railway system. Currently, it depends heavily on Government subsidy, which has facilitated the sustenance of uneconomical and low tariffs. The railway transport is now being restructured, which should lead to the divestiture of the corporation. Air Transport

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2.1.5 The Ghana Civil Aviation Authority (GCAA) is responsible for development, maintenance and operation of aviation infrastructure. GCAA provides navigational services and operates Kotoka International Airport (KIA) and four domestic airports, Kumasi, Sunyani, Tamale and Bolgatanga. Kotoka International Airport is the international gateway for air traffic into Ghana and serves about 15 different international airlines, including the national airline Ghana Airways. In 2000 passenger traffic was 572,276 and approximately 46,826 tones of cargo were handled as compared to 553,000 and 46,700 respectively in 1999. The four domestic airports, Kumasi, Sunyani, Tamale and Bolgatanga, are served by the national airline, Ghana Airways, since the two privately owned airlines went out of business in 2000. The GCAA is continuing its improvement program for the international airport, while the national airline has increased its regional, continental and intercontinental services. Maritime Transport 2.1.6 Port infrastructure is made up of two major deep-sea ports at Tema and Takoradi, which are managed by the Ghana Ports and Harbors Authority (GPHA). The throughput cargo handling for the ports in 2000 was 6,106,864 and 3,056,516 for Tema and Takoradi respectively. This represents a decrease of 4.6% and an increase of 16.5% in tonnage over 1999 for these two respective ports. About 82% of all imported cargo is handled by the Tema port, while the remaining 18% is handled by Takoradi. Conversely, Tema handles about 32.2% of the export cargo while the remaining 67.8% passes through Takoradi. Tema handles the majority of the high value imported cargo either in break bulk or container mode. Takoradi handles mainly the agricultural and mining export cargo. Tema has a higher revenue than Takoradi. The two ports complement each other. In order to enhance revenue generation, the thrust of port development policy for the GPHA is to retain ownership of land and infrastructure, while seeing private sector participation in some port operations and activities. The Government policy in this sub-sector is to develop an integrated multi-modal transport system which spans from Tema port by roads via the Volta lake and then by road to the northern sector and beyond to the land locked countries of Burkina Faso and Mali. Inland Water Transport 2.1.7 The inland water transport on the Volta Lake is operated by the Volta Lake Transport Company (VLTC) whose sole shareholder is the Volta River Authority. The VLTC operates passenger and cargo services along a 415-km route with three (3) vessels between its Eastern Region port at Akosombo and Buipe in the Northern Region with seven (7) intermediate stops. In addition, the VLTC operates ferry stations for passenger and cargo traffic. The vessels’ passenger and cargo traffic for the year 2000 was 25,415 persons and 92,615 tons, while that of the ferry service was 385,675 persons and 21,601 vehicles. The inland water transport system is still under-developed but has the potential as an intermediary mode for transporting goods from the Greater Accra Region to northern Ghana. 2.2 Transport Policy, Planning and Coordination

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2.2.1 The transport sector is the responsibility of two Ministries; (i) the Ministry of Transport and Communications (MTC), which is responsible for formulating and monitoring policies in the transport sector, establishing the regulatory framework for transport operations, creating the enabling environment for investment and the development of an integrated transport system. The Ministry also has oversight responsibility for the GCAA, GRC GPHA and VLTC; (ii) the Ministry of Roads and Highways (MRH), which is responsible for planning, and implementation of the road sub-sector development programs through the Department of Urban Road (DRU) and Department of Feeder Road (DFR) within the Ministry and the Ghana Highway Authority. These activities are undertaken in close consultation with the Ministry of Finance (MOF). The relationship between MTC, MRH and the various public agencies is well established. In order to streamline the procedures and to effectively carry out sector-wide functions, investment planning, policy formulation, transport regulations and monitoring of transport projects under their purview, Institutional strengthening of the Ministries is continuing under the current Road Sector Development Program (RSDP). 2.2.2 Policies have been designed to support the Government’s long-term vision that aims at transforming Ghana into a middle-income country by the year 2020. The medium-term program supporting this vision, and covering the second five years 2001-2005, aims to consolidate the gains so far secured over the past decade and to lay strong foundations for economic growth and development in the subsequent two decades. Consequently, during the past decade, investment in economic infrastructure, communications and transport has dominated the Public Investment Program (PIP). The current goal set by the transport sector is to provide an integrated, well-managed, viable and sustainable transport infrastructure and services meeting national poverty reduction and ECOWAS’ regional integration goals into the 21st century in order to establish a safe, reliable, effective and efficient movement of people and goods. 2.2.3 Transport plays a direct role in poverty reduction by facilitating income generation activities linked to agriculture and other sectors. The Bank’s support to the road sector is in keeping with the Bank’s Vision Statement set for Ghana in the 1999-2001 Country Strategy Paper that puts emphasis on poverty reduction through increased agricultural production, socio-economic development, and strengthening the foundations for sustainable development through the improvement of the social and economic infrastructure and enhancing the enabling environmental for private sector growth. The Transport sector is crucial in this regard because of its central role in providing rural feeder roads and the development of road links from crop production to market centers and transport facilities to the export markets. The Bank’s interventions include infrastructure rehabilitation, especially in the road sub-sector and institutional capacity building. In this way, the Bank’s participation in the transport sector will complement other sectors, especially agriculture, and promote internal and regional integration.

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3. THE ROAD SUB-SECTOR 3.1 The Road Network 3.1.1 The road network in Ghana is about 40,112-km kilometers of roads and serves a widely scattered population of 18.8 million. A breakdown of this network of roads gives the following quantity for the different types of roads: (i) 12,383-km of trunk roads, (ii) 24,000 km of feeder roads, (iii) 2,909 km of urban roads and (iv) 820-km of town roads. The trunk roads are further classified into (i) 4,365-km of National Roads, (ii) 2,393-km of Inter-Regional Roads and (iii) 5,625-km of Regional Roads. 3.1.2 About 5,551-km of trunk roads and 1649-km of urban roads are paved. The remaining 7,651-km of trunk and town, 1260 of urban roads and the 24,000-km of feeder roads are essentially of gravel or earth surface. Of the 22,115 km of Feeder roads only 23 percent are in maintainable condition. The Government initiated a trunk road stabilization plan in 1988 to improve the deteriorated trunk road network. Despite the improvements brought about by this initiative, the sub-sector only began to experience significant improvement since 1998 with the implementation of the rolling road sector development program. Some of the noted achievements are (i) overall improvement in the road condition between 1999 and 2000 by an increase from 32.7% to 38.7% good, a decrease from 36.9% to 34.0% fair and 30.4% to 27.3% bad (ii) restructuring of the road agencies with emphasis on capacity building in terms of training and technical assistance for a more efficient, effective and sustainable management in the national road network, (iii) restructuring of the Road Fund with a management board with full authority for the disbursement of the funds, (iv) Annual increase in the road user fees resulting in reliable funding for road maintenance, and (v) arrears payments to contractors engaged in the implementation of the 1996-2000 road sub-sector investment program being actively pursued. 3.2 Vehicle Fleet and Traffic 3.2.1 Vehicles are registered at 12 registration stations of the Drivers and Vehicle Licensing Authority (DVLA) of the Ministry of Transport and Communications throughout the nation. According to the statistics from the DVLD, the total number of vehicles re-registration between 1995 and 2000 was 302,304 and that of registered vehicles for the same period was 216,441 giving the total estimated vehicle of 518,745, with an annual growth rate of 9.6% at the end of 2000. Based on the statistics, the vehicle fleet comprises 6.1% motorcycle, 63.7% light vehicles, 20.6% medium vehicles, 9.2% heavy vehicles, and 0.4% tractor/trailers. 3.2.2 Road traffic data have been collected regularly over the 15 years by the GHA on the entire road network. The Average Annual Daily Traffic (AADT) for the year 2000 was estimated at 1,687 vehicles, 767 vehicles and 638 vehicles for National, Inter-regional and Regional roads respectively. The AADT growth rates between 1990 and 2000 were 4.6% for the trunk roads, 5.9% and 5.4% for National, Inter-regional and Regional roads respectively. In 2001, recent traffic counts on the road indicate an ADT of 2,483 vehicles compared with an ADT of 1,986 vehicles in 2000. Nearly 11 % are buses and trucks, and 89 % are cars and pickups.

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3.3 The Road Transport Industry 3.3.1 The private sector dominates the road transport industry and carries an estimated 85-90 percent of goods and passenger traffic while three state-owned parastatal companies carry the remaining 10-15 percent. Entry into the road transport industry is free and generally any Ghanaian owning a road-worthy vehicle with valid insurance can operate transport services for goods and passengers along any route. The private sector also provides services complementing the parastatal organizations in meeting the transport demand requirement of the public. 3.3.2 The major problems in road transport are a badly run-down infrastructure, many old and obsolete vehicles, capacity overloads, traffic congestion, poor or non-existent pedestrian facilities, high frequency of accidents, and virtual breakdown of the systems due to lack of financial resources and of only embryonic town planning services. The Government of Ghana through policy reforms, institutional restructuring and strengthening programs and resources mobilization as part of the Economic recovery program has embarked on a rehabilitation program that is now producing significant results in the improvement of transport infrastructure. 3.4 Road Administration and Training 3.4.1 The overall administration of the road transport infrastructure in Ghana is the responsibility of the Ministry of Roads and Highway which is responsible for planning, and implementation of the road sub-sector development programs. It is also responsible for the formulation of road sub-sector strategies and for monitoring the performance of the three road implementing agencies namely Ghana Highway Authority, the Department of Urban Roads and the Department of Feeder Roads in terms of budgeting, accounting and contract administration. 3.4.2 The Ghana Highway Authority was created in 1974 with the responsibilities for development and administration of the entire road network. However, in 1997, the Act creating the Authority was amended, limiting its role to the administration, control, development and maintenance of the trunk roads and related facilities, subject to the national transport policies and strategies. An independent Board of Directors of GHA was instituted in September 1999. The organizational chart of GHA is in Annex 2. 3.4.3 The Directorate consists of a Chief Executive with its functions divided among three departments of Development, Administration and Maintenance. Each department is headed by a Deputy Chief Executive who is responsible for monitoring the activities under his jurisdiction and ensures efficiency within the department. The Authority is staffed with a total number of 3,486 personnel of whom 611 are managerial/professional staff and 2875 are technical/support staff. GHA staff is spread over the central office in Accra, 10 regional offices and 32 road area offices. 3.4.4 External consultants supervise most of the capital-intensive road projects implemented by GHA. The force account workload has been drastically reduced because road maintenance works are now being implemented by the private construction industry. Consequently, GHA staff, which largely comprises of relatively young professionals, is increasingly assuming the responsibility of planning, supervising, monitoring and evaluating the works. However, the majority of GHA young

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professionals lack management and technical skills as well as knowledge in highway planning, financial management, research and development, road safety and environmental issues, and road information system. Such skills are pre-requisite to working in more coordinated and efficient fashion at the Head Office and in the decentralized GHA’s Regional offices. In addition, GHA has insufficient facilities and equipment, especially computers and software. In order to enable them to adequately undertake the new responsibility, institutional capacity building for GHA has been provided under the RSDP. 3.5 Road Financing 3.5.1 The ROSSIP is financed from both the local and external sources. The local funding is from the central government’s Consolidated Fund and the Road Fund. External resources are in the form of grants, concessional loans, and non-concessional credits accruing from bilateral and multilateral donors. The Road Fund and some external sources mainly finance road routine and periodic maintenance, while the rehabilitation and new road construction are financed by the Consolidated Funds and external sources. The total funds released to the road sector have averaged US$200 million per annum between 1996 and 2000. On average GOG has been contributing US $ 110 million and the donors have been contributing US $90 million annually. However, Government incurred nearly US$ 300 million in arrears to contractors. Government has so far cleared most of the arrears such that there now remains about US$22 million, which the Government has programmed to be cleared by December 2001. Since the restructuring of the Ghana Road Fund (GRF) in 1997, and with the appointment of an independent Board and the establishment of a secretariat responsible for the daily operation of the fund, the collection and disbursement of resources by the Road Fund have improved. Consequently, the GRF releases are taking a larger share of the total contribution to the road sector by the Government. Additional information on the Road Fund performance is discussed under the project sustainability. According to the Road Fund Act of 1997, the GRF receives its funds through fuel levies, tolls, vehicle registration fees, road user fees, and international transit fee. Table 3.1 below gives an overview of actual and projected revenues from the various sources.

Table 3.1 GRF Revenues From Various Sources (USD million)

SOURCE 1999 2000 2001 2002 2003 Total

Fuel levy 87.60 79.90 81.90 89.50 89.30 428.20Tolls 2.46 2.68 2.06 1.92 2.02 11.14Vehicle Registration Fees 4.76 3.16 2.56 2.39 2.63 15.49Road Use fees 3.22 2.39 1.98 1.84 1.94 11.37International Transit fee 0.21 0.14 0.09 0.10 0.09 0.64Total Revenue 98.25 88.27 88.59 95.75 95.97 466.83Source:

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Intervention of donors 3.5.2 Most multi-lateral and bilateral donor organizations in Ghana are active in the road sub-sector. Past commitments (1988-1994) made by Donor agencies have averaged about USD 115 million equivalent per annum, mainly for major reconstruction and rehabilitation works. This amount was necessary to meet the annual road sector expenditure budget. However, as previously mentioned since 1996, the contribution has declined to USD 90 million per annum. The 1996-2000 Road Sector Expenditure Program was jointly developed by Government, user groups; the Parliamentary sub-committee for infrastructure, the ADB and all other donors active in the sector (OECF, KfW, European Union, Dutch Government, BADEA, OPEC Fund, DANIDA, USAID and IDA). In addition, the National Feeder Roads Rehabilitation and Maintenance Project (NFRRMP), introduced in 1991 and financed by IDA, DANIDA, OPEC, OECF and GOG, represents a first stage in the Government’s ongoing feeder roads program. 3.6 Road Engineering and Construction 3.6.1 Ghana has resources both in the Engineering Consulting activities and in the construction industry. More than 850 local construction companies and 20 engineering consulting firms are currently registered with the MRH. Most of the construction works are contracted to the private sector as a result of the new policy in road maintenance. However, GHA still handles some engineering services including designs and supervision. 3.6.2 The role of the Ghanaian contractors has become more important because national contractors execute contractual Routine and Periodic Maintenance activities, which are financed from the Road Fund. In line with the Road Fund Act, the medium and long-term plan of the Road Fund is to finance a substantial part of the development program. 3.7 Road Maintenance 3.7.1 The Road maintenance in Ghana, under HSIP, is carried out through three departments, namely: (a) the Department of Feeder Roads, (b) the Department of Urban Road and (c) the Ghana Highway Authority. Each of these departments is responsible, each year, for planning and budgeting for the maintenance works to be undertaken for roads under their jurisdiction. All routine and periodic maintenance are planned in the framework of the Road Sub-sector Investment Program that is aiming at providing the country with a network condition mix established at around 70% good, 20% fair and no more than 10% poor by 2005. 3.7.2 From 1996 to 2000 GHA has achieved the reconstruction of 1,017-km (111%) against the planned 920-km, the rehabilitation of some 223-km (62%) against the planned 360-km and 2995 (39%) against the planned 7600-km under periodic maintenance of roadwork. The achievement of routine maintenance during the same period is 30189 km (52%) against the programmed 58000-km. Considering the shortage of funds and high increase in per-km cost, this achievement is considered satisfactory. Funding allocated for maintenance lies within the purview of the Ministry of Finance. Road maintenance is mainly funded by the Road Fund, which is steadily increasing its contribution to resources needed for road maintenance.

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It is programmed that the percentage of the fund presently being allocated to the GHA is being increased annually to meet its higher levels of the budgeted projections over the three-year rolling programs. 3.7.3 Up to 1985, routine and periodic maintenance operations were carried out through 10 regional offices, 32 district offices across the country, two mobile maintenance units and two bridge maintenance units. Since 1986, private firms mainly through international or national competitive bidding have carried out reconstruction and rehabilitation works administered by the DFR, DUR and GHA. It is envisaged that no more than 10% of all works executed in the road sub-sector would be carried out by force account. 4. THE PROJECT 4.1 Project Concept and Rationale 4.1.1 The Government recognizes the Tema-Aflao Road as an important international road forming part of the Trans-West African Highway. The road promotes regional integration and economic cooperation between Ghana and her ECOWAS trading partner-countries, especially Togo, Benin, Nigeria and Niger. The road has deteriorated so much that it imposes serious traveling difficulties, high transport costs and safety problems. These problems have contributed to reduced agricultural production and industrial activities and also constrain the development of the tourist industry that could otherwise facilitate socio-economic development and reduce poverty. In order to reduce these transport-related problems, the Government included the Tema Aflao Road in its rolling development programme, and initiated studies with a view to determining optimal rehabilitation measures. 4.1.2 Subsequently, the Government with the assistance from the World Bank commissioned a Feasibility study and detailed Engineering Design and preparation of Tender Documents for the Tema-Aflao Road. The studies were completed in 1993. However, with funds from KFW, the Feasibility Studies were updated in 1998. The Government, in 1998 requested the Bank to assist in financing the updating of the Environmental Impact Assessment Study and conduct the Gender/Poverty Reduction Studies on the Tema-Aflao Road, which did not form part of the original studies. The Bank, with bilateral funding from the People’s Republic of China, conducted the studies. The results of EIA study have formed the basis for analyzing the impact the road project will have on poverty, environment, and socio-economic status of the people within the area of influence. The Government has requested Bank’s participation in funding the implementation of the Tema - Aflao Road Rehabilitation Project. 4.1.3 During the update of the Feasibility Study, as well as that of the Environmental and Social Economic Studies, the various stakeholders were actively involved in shaping the project that was eventually recommended for implementation. In this regard, people residing within the project road’s immediate area of influence participated in field meetings and interviews with the Consultants and Government officials with a view to soliciting their comments and concurrence with the project design.

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4.1.4 In the course of prioritizing the road projects for inclusion in the Highway Sector Investment Program and the Road Sector Development Program, the Government held workshops during which stakeholders participated in the selection of the priority road network for rehabilitation. In order to augment these consultations, during the implementation of the project, the Government and the Consultants will periodically discuss the project objectives and the implementation with the stakeholders with a view to ensuring the stakeholders fullest participation in the project. In this regard, the initial consultations will take place as soon as the Consultants have been engaged. The subsequent consultations will be conducted as and when issues arise, especially with a view to explaining to various stakeholders the importance of looking after the infrastructure, especially drainage facilities. The Government, the Consultants and the various stakeholders will also discuss the impacts and corrective measures the project will put in place to combat malaria and HIV/AIDS related diseases. The consultations will also enable stakeholders to discuss ways and actions required to optimize use of the various road safety measures and facilities that will be installed during the project implementation. 4.1.5 The Feasibility Study and Detailed Engineering Design divided the 166-km Tema – Aflao Road into two main Components. The first component (125-km) comprises four sections as follows: Section 1: Tema-Dawhenya (11-Km), Section 2: Dawhenya-Kasseh (54-Km), Section 3: Kasseh-Sogakope (21-km), and Section 4: Sogakope-Akatsi/Abor (39-Km), including the 7-km Akatsi bypass. The second component is Section 5: Akatsi/Abor-Aflao (41-Km). During the project appraisal, the first component to be financed by KFW and GOG was re-arranged to Tema- Akatsi (118-km), which excludes the Akatsi bypass, whereas the second component increased by the 7-km Akatsi bypass and became Akatsi-Aflao (48-km) section. Government has requested the Bank along with the ECOWAS Fund to participate in the funding of the Akatsi-Aflao Section of the Tema – Aflao Road Rehabilitation Project. 4.1.6 The project component that the Bank is being requested to fund will, relative to the above study, involve the rehabilitation of the 41-km road existing section from Abor to Aflao and the construction of a 7-km bypass starting from the Akatsi town entrance and ending at the Abor town entrance. The road AADT for the year 2000 is estimated at 3327, which is projected to rise to 8873 by 2019. The road will have a design life of 15-years for an equivalent standard axle load (ESAL) of 11.5 tons with a designed speed of 100-km/hr for the highway and 60-km/hr for the built-up areas. The cross section would consist of a single carriageway of 7.3-m with 0.25-m road edge marking and 2.5-m surface dressed shoulders on each side of the road. However, in the built-up area (Denu & Aflao), the pavement works would be limited to strengthening of the pavement structure without widening of the carriageway in order to avoid encroachment on private property, which would involve prohibitive resettlement costs. The road structure will constitute 5-centimeters (cm) asphaltic concrete surface, 20-cm bitumen crushed stone base and 25.0-cm lateritic gravel subbase. Three alternative pavement structures were obtained using Transportation Road Research Laboratory (TRRL) Road Note # 31 (4th Edition) and the American Association of State Highway and Transportation Officials (AASHTO) Design Guide. The three alternatives were as follows: Alternative 1 constituted double bituminous surface dressing, 22.5-cm crushed stone base and 27.5-cm lateritic gravel subbase; Alternative 2 constituted 5-cm asphaltic concrete surface, 20-cm bitumen crushed stone base and 25-cm lateritic gravel subbase and Alternative 3 constituted 5-(cm) asphaltic concrete surface, 17.5-cm crushed stone base and 25.0-cm lateritic gravel subbase. The alternatives were further checked

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for design adequacy and performance using the World Bank’s Highway Design and Maintenance Standard Model 3 (HDM-III). The three alternative pavement structures were analyzed against the basic and lower traffic growths with and without axle load control. The final design was based on a correlation between the alternatives costs, and the HDM-III outputs (internal rate of return & requirement for overlay). The accepted design, alternative 2, was based on the with axle load control because axle load control stations will be installed at various points along the road as part of the project. 4.1.7 Since the Bank started funding projects and studies in Ghana in 1973, to date the Bank Group has approved a total of fifty-six operations, totaling UA 604.02 million to finance forty-six (47) projects, 8 studies and one institutional support operation. Of the total Bank operations, the transport sector accounts for 13% of the financing, with 9 operations amounting to UA 78.49 million. The overall performance in the implementation of the transport sector operations has been satisfactory. However, there remain a number of areas that need to be improved upon. Generally, there are delays in fulfilling loan/grant conditions. The Government has generally been late in preparing basic documentation for the procurement of goods and services, and submitting quarterly reports and audited financial statements 4.1.8 Over the years, there has been some improvement in the funding, management and implementation of the projects and studies. These improvements have been partly due to a joint effort by the Bank and the Government in improving communication and exchange of ideas. The Bank has also actively participated in the preparation and implementation of the development programs in consultation with other donors. In this respect, the Bank has been and will continue supporting measures such as the appointment of Government officers as counterparts to expatriates, consultants, and training the staff that are aimed at improving study and project implementation through the GHA institutional capacity building program being financed by the Bank. The Bank has also intensified its supervision of the projects and studies. 4.1.9 On its part, the Government has extended its effort in mobilizing counterpart funds for the projects through the Road Fund. The Government, slowly but steadily, is engaging the private sector in the actual construction and maintenance of roads, while at the same time improving its policy formulation, project supervision and monitoring. These measures and lessons have influenced the conception and design of this project.

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4.2 Project Area and Project Beneficiaries Project Area 4.2.1 The Tema-Aflao Road is an important international road in the South–east of Ghana, forming part of the Trans-West African Highway network, and links Ghana with her eastern ECOWAS trading partner-countries, especially Togo, Benin, Nigeria and Niger. The road commences at the Tema Junction east of Accra in the Greater Accra Region and ends at Aflao on the Togo border in the Volta Region. It runs parallel to the country’s coastline along its entire stretch. The area of influence is in the form of a triangle, formed by the Tema-Ho, Ho-Aflao trunk roads and the coastline Tema-Aflao. The triangle covers eight political/administrative districts in the Greater Accra and Volta Regions. The road transcends six different administrative areas namely, Tema Municipal Assembly, Dangme-West District, Dangme-East District, South-Tongu District, Akatsi District and Ketu District. Connecting roads give access to a number of other settlements including Nyibenya, Tefle, Agbakope, Afife and Tokor. 4.2.2 The Tema-Aflao road mainly serves relatively densely populated rural and semi-urban areas including Tema, Dawhenya, Dawa, Sege, Kasseh, Ada, Sogakope, Agbakope, Akatsi, Abor, Denu and Aflao. The project road also serves a large primary agricultural area, and gives direct access to markets at the local towns including Dawhenya, Dawa, Kasse, Sogakope, Akatsi and Aflao. The main economic activities in the area of influence are farming, animal husbandry, and trading, which make the project road very important in Ghana’s economy. There are no protected areas or structures of cultural heritage located along the project road. In addition, the road does not pass through any parks or natural reserves. 4.2.3 The climate within project area has an average rainfall of 930 mm and two distinct wet and dry seasons. The area is wet from April to July and from September to October. It is dry from November to March and a brief dry season in August with very minimal rainfall events. Relative humidity and evapo-transpiration are generally high throughout the year, with the average monthly temperatures varying between 24 degrees Celcius and 30 degrees Celcius. The Tema-Aflao Road is characterised by rolling to undulating topography, with average height ranging between 20-50 metres above sea level. The Abor-Aflao section is the lowest in terms of elevation as it is seated on wetland areas. The main geological formations are the Precambrian series, the Togo series and the Voltain or Paleozoic system. The vegetation along the project road belongs to a combination of pure grassland and coastal Savannah type that stretches in a narrow strip from west Accra to Togo border in the Volta Region. Project Beneficiaries 4.2.4 The population of the localities along the Tema Aflao Road is over 110,000, of whom 52.8% are women and 47.2% are men. Populations are denser towards Aflao. Most of the people living in the project area of influence, are small-scale farmers who can be described as rural poor. Farmers grow vegetables, pepper, tomato, onions, and irrigated rice, etc. Pepper is exported to Togo. Farming is supplemented by other activities such as petty trading, salt mining stone cutting, livestock raising, fishing, pottery making, etc. Women are active in all economic activities and

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dominate the trading network that brings goods to the villages from cities and district centres, and vice versa. The road is lined up by shops and kiosks, selling all sorts of wares from building material to clothes and food, especially in townships. Small scale industries like salt mining in Prampram and towards Aflao is a major resource and export product. There are a number of business centres along the road. Aflao is fast becoming a busy business district, with banks, hotels and other establishments. Other growing business centres are road junctions such as Kasseh, Sege, Abor, Klikor-Agbozume and Sogakope. Textille and other finished products are imported from Togo where they are cheaper than in Ghana, while cash crops and fowl are exported to Togo across the border. Tourist industry is bound to benefit from an improved road. The centers of attraction include the beach resorts, the River Volta Estuary, the Keta-Angaw Lagoon basin, Kyabobo National park and the water falls of the Volta Region. There are several social facilities that would benefit from an improved transport system due to a better road. These include government-funded services such as schools, hospitals or clinics, police stations, etc, and privately-funded services such as petrol stations, banks, and market areas. Therefore, farming and commercial institutions will all benefit from improved delivery of services, as well as enhanced service utilization because of improved accessibility when the road is improved. 4.2.5 The improved road will contribute to enhancing highway safety along the Tema Aflao-Road, which is currently accident–prone. Accident statistics in just six years between 1992 and 1997 show that there were 671 accidents of which 103 were fatal. The highest number of accidents occurred in densely populated areas especially between Denu towards the Togo border in Aflao. Other high-risk localities are Akatsi, Afife, Sogakope, Agbozume, Dawa, Sege Junction, Koluedor and Torvo. Among the major causes of accidents are insufficient accident prevention measures, lack of safety action plans, and overloading and loss of vehicle control. The project will incorporate road safety measures such as the installation of speed-limits, zebra pedestrian crossings and rumbles, sufficient lay-bys for trucks and vehicles, provision of wide shoulders on either side of the road, and installation of weigh bridges. In addition, there will be public education and traffic awareness programs carried out during the project and after the project.

Poverty Profile in the Area 4.2.6 Poverty incidence stands between 7 % in Greater Accra Region and 73% in the Volta Region. These disparities are a reflection of the fact that poverty is more pronounced in the rural areas. The Volta Region has a much higher poverty incidence level than the national average, which is estimated at 43% based on the upper poverty line of 900,000 Cedis. It is further estimated that the average consumption among the poor in Ghana is around 30 % below the upper poverty line. There are wide variances between farm-gate and consumer prices such that about 21% and 70 % for livestock and foodstuff, respectively, are attributable to marketing costs. Transport costs constitute between 60% and 80% of the marketing costs for foodstuff and other primary produce like logs.

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Efforts to reduce poverty among the poor especially in the rural areas have been more effective among export farmers, informal sector wage employees and the non-farm self-employed. 4.2.7 The current poor state of the road impedes agricultural production for export purposes and retards access to gainful employment, and hinders the delivery of basic services such as education, health and water and sanitation, and family planning services. 4.3 Strategic Context 4.3.1 The Government of Ghana has for a long time realized that in order to reduce poverty, efforts are needed to enhance access to basic social services and infrastructure available to the poor. Consequently, the Government has developed a Strategy of Poverty Reduction that lays emphasis on: i) economic growth, ii) integrated rural development, iii) expansion of employment opportunities, and iv) improved access by the rural and urban poor to basic public services such as education, health care and water and sanitation, and family planning services. Among the principal elements that will link the various aspects of the strategic web aimed at realizing the objective of poverty reduction, are the minimization of isolation of poor communities and the access of the poor to basic social services and markets for their produce. Improved road and communication networks are vital to this end. 4.3.2 The Tema - Aflao Road, which forms part of the ECOWAS sponsored coastal Trans-West African Highway, carries national, regional and international traffic, thereby fostering economic development as well as regional trade and integration. The road provides an important link in the integration of the administrative and economic activities within Ghana and between Ghana and its eastern ECOWAS trading neighbors/partners, mainly, Togo Niger, Benin and Nigeria. The road has deteriorated so much that it imposes serious traveling difficulties, high transport costs and safety problems. These problems have contributed to reduced agricultural production and industrial activities and also constrain the development of the tourist industry that could otherwise facilitate socio-economic development, reduce poverty and overall regional integration. The road is considered by the Government to be one of the critical roads that need immediate attention in order to reduce poverty especially in the Volta Region, which is one of the poorest regions in the country. Consequently, the road has been included in the current Road Sub-sector Development Program. The project, as designed, will facilitate regional integration activities as well as access to social services and markets. 4.4 Objectives Sector Goal 4.4.1 The current goal set by the transport sector is to provide an integrated, well-managed, viable and sustainable transport infrastructure and services meeting national poverty reduction and ECOWAS regional integration goals into the 21st century in order to establish a safe, reliable, effective and efficient movement of people and goods.

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Project Objectives 4.4.2 The objective of the project is to promote regional integration as well as contribute towards the Government’s goal of poverty reduction and economic development by reducing the travel time and vehicle operating cost, resulting in reduced road user costs for both passengers and freight. 4.5 Project Description Project Output 4.5.1 The project will consist of the following components:

A. Civil Works (i) The Tema – Akatsi component would consist of the reconstruction of a 118-kilometers

of single carriageway trunk road. The cross section would consist a single carriageway of 7.3-m width and asphaltic concrete surfacing of 5 centimeters with 0.25-m road edge marking and 2.5-m surface dressed shoulders on each side of the road.

(ii) The Akatsi – Aflao component consist of the reconstruction of a 41-kilometers of single

carriageway trunk road. The cross section would consist a single carriageway of 7.3-m width and asphaltic concrete surfacing of 5 centimeters with 0.25-m road edge marking and 2.5-m surface dressed shoulders on each side of the road. It also includes construction of a 7- kilometer by-pass starting at the Akatsi town entrance and ending at the Abor town entrance with the cross section as mentioned. The final 7-kilometers of the project from Denu to Aflao is heavily built-up along the alignment. Therefore the construction shall retain the existing road width as much as possible in order to avoid the displacement of people.

B. Consultancy Services i) Supervision of civil works ii) External auditing of the project Description Project Output Activities

A. Civil Works 4.5.2. The total project road (166-km) is designed for 15 years design life for an equivalent standard axle load (ESAL) of 11.5 tons with a designed speed of 100-km/hr for the highway and 60-km/hr for the built-up areas using the TRRL Overseas Road note 31 and AASHTO as design Standards.

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Based on topography, current and projected traffic level and the amount of frontage development, the road was divided into five sections. However for financing purposes, the five sections have been reduced to two sections. The road works shall include earthworks, construction of a by-pass, minor repairs on 8 (eight) bridges, repair and construction of drainage structures, pavement works installation of axle load control facilities, road safety features and miscellaneous works. However, the ADF project does not include any bridge works. B. Consultancy Services Supervision of Works 4.5.3 A consulting engineering firm will undertake the supervision of the works throughout the implementation period of the project on behalf of the Executing Agency. The consultants will monitor the project and ensure that the contractor conforms to the specifications. The consultants’ responsibility will also include design review, evaluation of tenders, measurement of works, the preparation of progress reports, certification of payment invoices, authorization of completion certificates, and preparation of project completion report at the end of the project. The consultant will be required to satisfy itself with the authenticity of the design through a design review that should include a road safety audit prior to implementation. As part of its responsibility, the consultant should provide an expert who would conduct HIV/AIDS Awareness Workshops for the consultant and contractor’s teams as well as the population within the project area. Project Auditing 4.5.4 The project technical and financial audits will be performed annually by an external auditing firm to ensure that the project is implemented in accordance with the provisions of the loan agreement. 4.6 Environmental Impacts 4.6.1 The Government of Ghana has developed an Environmental Policy, and Legal and Administrative Frameworks which ensure the improvement and management of a high quality of life that guarantees a sustainable management of the country’s environmental resources namely forests, wildlife, soils, water bodies, minerals, etc. The Environmental Protection Agency (EPA) of Ghana, under the Ministry of Environmental Sciences and Technology, ensures the implementation of environmental policies and co-ordination of environmental activities. There also exists the Ghana Environmental Action Plan (GEAP), prepared in 1988 to articulate government’s policies and provide the framework for interventions needed to protect the environment. In addition, there are guidelines for the preparation of Environmental Impact Assessment (EIA) Reports, Environmental Management Plans (EMPs) and Environmental Impact Statements (EISs) without which major development projects such as mining enterprises, road development, housing and urban development, industrial activities such as cement works, oil refineries fertilizer plants, agricultural schemes, etc. cannot be initiated.

Positive Impacts

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4.6.2 The Tema Aflao Road project forms part of the regional network and therefore carries heavy traffic across the borders. The project will provide a better road, which will also divert some of the traffic away from Akatsi, thereby improving safety and will also reduce most of the negative environmental road hazards such as accidents, erosion, and air pollution, associated with current road. The improved road, will enhance economic activities, movement of goods and people to market, access roads, bridges, culverts, headwalls and pedestrian walk-ways, and facilitate regional trade and economic integration. During the implementation of the project workshops will be held for the project staff and the local population on HIV/AIDS.

Negative Impacts

4.6.3 The potential negative effects of the project may include, unclaimed borrow pits, slope erosion, water pollution by surface wash, dust pollution and disruption of utility services, poor access roads, silting and destruction of bridges and culverts. The improved road will generally follow the same alignment, and in this respect, the project has been classified as Category II (Annex 3).

Mitigation Measures

4.6.4 The requisite mitigation measures have been incorporated into the design of the project to reduce or alleviate any potential negative aspects associated with the project. They will include full rehabilitation of borrow pits, land and contractor’s camp. The cost for enhancement measures and compensation value for the reclamation of burrow pits and payment for land on which burrow pits have been dug, has been incorporated in the project’s construction cost. During construction, slopes, which may experience erosion, will be stabilized. The roads will be watered daily, to reduce dust pollution. During construction, utility services, which will be disrupted, will be re-instated as rapidly as possible. Those institutions and areas affected will be sufficiently notified, access roads and detours will be improved and provided where necessary, bridges, and culverts re-installed, and pedestrian walk ways and guard rails installed. Maximum safety features will be installed, including reflectors, stop signs, and speed bumpers. Police patrol will also be put into place so as to reduce vehicular and human accidents. 4.7 Social Impact 4.7.1 The road in its current state retards accessibility to socio-economic activities such as schools, hospitals, and markets. The implication is that people residing within the project road area of influence experience lower life styles in terms of literacy levels, health status, and economic and financial standing. The improved road will enhance the socio-economic standing of the people residing within the area of influence through increased agricultural production, improved educational facilities, better deliveries of medicine and health services and increased tourist traffic to attractive centers including the Volta River Estuary.

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Gender Impact 4.7.2 The rehabilitation of the project road will offer the people within the area of influence more trade opportunities. This will have greater impact on women who are the main participants in trading activities. During construction of the road, traders especially women, will have a bigger market offered by the labor force employed on the project. After completion of the construction works, more women, and girls will have better opportunities to access educational facilities, health facilities and markets, which will enhance their financial standing and reduce their poverty. The development of the industrial areas and ease of access to the tourist centers, as well as easy cross-border traffic, will generate employment for both women and men and reduce the level of unemployment currently rampart in the area of influence. Poverty Reduction 4.7.3 The Government's development goal is to reduce poverty through increased economic growth, largely in the agricultural sector, and through improving access to social services, particularly in the rural areas. The project will therefore support the Government in its efforts to attain its objectives and goal in a number of ways. Firstly, by reducing vehicle operating costs through maintenance, rehabilitation and reconstruction of the project road. With reduced operating costs, lower tariffs due to competition would be offered to the users thus improving access to markets. Secondly it will offer employment not only to some of the more than 110,000 local people residing in towns and villages within the area of influence, but also the local consultants and contractors who will be involved in the road construction work. Thirdly, once the road is improved, local traders, especially women will have more customers for their local agricultural produce for sale, i.e. vegetables, pepper, etc, some of which are exported. This will therefore contribute to the government's goal of poverty alleviation. 4.8 Project Costs 4.8.1 The total project cost, net of customs duties and taxes, has been estimated at UA 71.71 million including UA 51.84 million in foreign exchange and UA 19.87 million in local currency. The supervision cost is derived by applying 6% to the cost of physical works. The total estimated cost includes a 10% physical contingency and a price escalation of 3% per annum. The project cost was calculated from quantities prepared by the consultant and unit prices provided by the Ghana Highway Authority and from ongoing and recently completed projects. The ADF Component of the project cost has been estimated at UA 21.15 million including UA 15.03 million in foreign exchange and UA 6.12 million in local currency A summary cost estimate of the entire project is shown in Table 4.1 below. A provisional list of goods and services is given in Annex 4.

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Table 4.1

Summary of ADF Project Cost Estimates by Component

US$ Million UA MillionCOMPONENTS F. E. L. C. TOTAL FE LC TOTAL

FE %

B. AKATSI-AFLAO SECTION a) Civil Works 15.34 6.26 21.60 12.31 5.03 17.34 71b) Consultancy Services (i) Supervision 6% 0.92 0.38 1.30 0.74 0.30 1.04 71 (ii) Audit 0.05 0.00 0.05 0.04 0.00 0.04 100Sub-Total Consultancy Services 0.97 0.38 1.35 0.78 0.30 1.08 72Base Cost Sub-Total 16.31 6.64 22.95 13.09 5.33 18.42 71Physical Contingency 10% 1.63 0.66 2.30 1.31 0.53 1.84 71Price Contingency 3 %/Annum 0.78 0.32 1.10 0.63 0.26 0.89 71Contingency Sub-Total 2.41 0.98 3.39 1.94 0.79 2.73 71TOTAL ADF PROJECT COST 18.72 7.62 26.34 15.03 6.12 21.15 71 4.8.2 The summary of costs by expenditure category for the ADF project is shown below in Table 4.2.

Table 4.2 Summary of ADF Project Cost by Expenditure Category

US$ Million UA Million

Categories F. E. L. C. TOTAL F. E. L. C. TOTAL

A. Civil Works 17.61 7.19 24.80 14.14 5.77 19.91B. Consultancy Services Sub-Total (i) Supervision 1.06 0.43 1.49 0.85 0.35 1.20 (ii) Audit 0.05 0.00 0.05 0.04 0.00 0.04Category B Sub-Total 1.11 0.43 1.54 0.89 0.35 1.20Total 18.72 7.62 26.35 15.03 6.12 21.15 4.9 Source of Financing and Expenditure Schedule 4.9.1 The project is divided into two parallel financed sections. One section will be co-financed by the ADF, ECOWAS Fund and the Government of Ghana, and the other by the KFW and the Government of Ghana. The ADF will make available the amount of UA 14.70 million for the project from the ADF VIII resources. This amount represents 20.50% of the total project cost. The ADF loan will be used towards financing 28.36% of the total project foreign cost. The project local cost has been calculated in USD due to the high fluctuation and constant devaluation of the national currency (Cedis). KFW, ECOWAS Fund, and the Government of Ghana are expected to contribute UA 47.81 million, UA 4.82 million, and UA 4.38 million respectively. The respective amounts in terms of percentage contribution of the total project are 66.67 %, 6.72% and 6.11%.

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4.9.2 The ADF, ECOWAS Fund and the Government of Ghana will finance the ADF section. The ADF loan will finance the total cost of its project audit, along with 100% and 69.3% of the foreign exchange of its project supervision and civil works respectively. The ADF contribution to the foreign cost of its project will be UA 14.70 million. The Government contribution of UA1.63 is 10 per cent of the total cost to be financed by the ADF and the GOG as required by the ADF VIII Lending Policy. Table 4.3 below shows the financing plan for the ADF project.

Table 4.3 ADF Project Sources of Finance

UA MILLION

Source F. E. L. C TOTAL % of Total

ADF 14.70 0.00 14.70 69.50ECOWAS FUND 0.33 4.49 4.82 22.79GOG 0.00 1.63 1.63 7.71TOTAL 15.03 6.12 21.15 100.00 4.9.3 The categories of expenditure by source of financing for the ADF project are shown below in Tables 4.4.

Table 4.4

ADF Project Category of Expenditure by Source of Financing

(UA Million) Source/Category ADF ECOWAS FUND GOG TOTAL CIVIL WORKS 13.59 4.47 1.63 19.91CONSULTING SERVICES 0.89 0.35 0.00 1.24TOTAL 14.70 4.82 1.63 21.15 4.9.4 A projection of expenditure according to category for the ADF is presented in table 4.5 below.

Table 4.5 ADF Project Expenditure Schedule by Category

(UA Million) CATEGORY 2002 2003 2004 2005 2006 TOTAL CIVIL WORKS 4.66 6.10 6.00 1.48 1.67 19.91CONSULTING SERVICES 0.30 0.32 0.32 0.17 0.13 1.24TOTAL 4.96 6.42 6.32 1.65 1.80 21.15 4.9.5 A projection of expenditure according to source for the ADF is presented in the Table 4.6 below.

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Table 4.6 The ADF Project Expenditure Schedule by Source of Financing

(UA million) Source 2002 2003 2004 2005 2006 TOTAL % ADF 3.45 4.48 4.38 1.15 1.25 14.70 69.50ECOWAS FUND 1.13 1.45 1.45 0.38 0.41 4.82 22.79

GOG 0.38 0.49 0.49 0.13 0.14 1.63 7.71TOTAL 4.96 6.42 6.32 1.65 1.80 21.15 100.00 5. PROJECT IMPLEMENTATION 5.1 Executing Agency The executing agency for the project will be the Ghana Highway Authority. The GHA was originally established in 1974 as the organization responsible for the development and administration of the whole road network in the country. Since the re-enactment of GHA in December 1997, its role has been limited to the overall planning, design construction, construction supervision, and maintenance of all trunk roads as well as preparation of short and long term plans for trunk roads construction and maintenance. 5.2 Institutional Arrangement 5.2.1 The Development Department within the GHA is responsible for the planning and implementation of all road projects. The Chief Engineer heading the Contracts Division of this Department will be the officer directly responsible for the project implementation. A project coordinator who will be based at GHA will assist him along with a counterpart resident engineer designated from the GHA staff who will be stationed on the field. The designation of the project coordinator and the counterpart resident engineer will be a loan condition. 5.2.2 Supervision of the project will be strengthened by the commissioning of a consulting engineering firm, which will provide the necessary staff to supervise the daily performance of the contractor, the daily inspection and certification of works, contractor’s monthly payment certification, and preparation of progress reports on the works. In addition, the firm will provide technical and professional advice to the GHA during evaluation of tenders and the award of the construction contract. Also, as a loan condition, the Consulting firm in conjunction with the Ghana Environmental Protection Agency and the GHA Division of Safety and Environment will monitor the implementation of the environment mitigating measures.

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5.3 Supervision and Implementation Schedule 5.3.1 The project consulting services and works contracts will span over an estimated period of forty-five (45) months. The supervision consulting services period would be divided into three phases. The phases are: (i) the design review and tender, (ii) supervision and (iii) defect liability phases. Each phase would require different level of staffing. The project supervision consultancy services for the works will commence in August 2002 and terminate in April 2006. The supervision Consultants will assist the Executing Agency during the tender evaluation. The supervision Consultants firm will be required to satisfy itself with the authenticity of the design. The Consultant will be responsible for the day-to-day supervision of the works, quality control, certification of the works progress. 5.3.2 The auditing services will be conducted on an annual basis commencing in February 2004 and end in June 2006. The contractor’s works should begin in March 2003 and end in February 2005, followed by a twelve-(12) months defect liability period ending February 2006. Table 5.1 below is the proposed implementation plan for the ADF component of the project, which is also represented graphically in Annex 5.

Table 5.1 Proposed Project Implementation Plan

Activity Action/Agency Timing

Loan Processing Project Appraisal ADF June/July 2001 Loan Negotiations GOG/ADF October 2001 Approval of Loan ADF November 2001 GPN Prepared/Issued GOG/ADF December 2001 Schedule of Supervision Consultancy Services RFP Issued GOG February 2002 Proposal Received GOG April 2002 Evaluation Approved ADF June 2002 Contract Negotiations GOG/Consultants June 2002 Draft Contract Approved ADF July 2002 Contract Signed GOG/Consultants July 2002 Consultancy Services Commenced GOG/Consultant August 2002 Consultancy Services Completed GOG/Consultant/ADF April 2006 Schedule of Audit Consultancy Services RFP Issued GOG August 2003 Proposal Received GOG October 2003 Evaluation Approved ADF November 2003 Contract Negotiations GOG/Consultant December 2003 Draft Contract Approved ADF January 2004 Contract Signed GOG/Consultant January 2004 Consultancy Services Commenced GOG/Consultant February 2004 Consultancy Services Completed GOG/Consultant/ADF Julne2006

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Activity Action/Agency Timing

Schedule of Civil Works SPN Issued GOG/ADF April 2002 Pre-qualification GOG/ADF July 2000 Tender Issued GOG October 2002 Tender Received GOG November 2002 Tender Evaluation Approved ADF January 2003 Contract Negotiations GOG/Contractor January 2003 Draft Contract Approved ADF February 2003 Contract Signed GOG/Contractor February 2003 Civil Works Commenced GOG/Contractor March 2003 Civil Works Completed GOG/Contractor February 2005 Defect Liability Period Ends GOG/Contractor/ADF February 2006

5.4 Procurement Arrangements 5.4.1 Procurement arrangements are summarized in Table 5.2 below. All procurement of goods, works and acquisition of consulting services financed by the Bank will be in Accordance with the Bank’s “Rules of Procedure for Procurement of Good and Works” or, as appropriate, “Rules of Procedure for the Use of Consultants”, using the relevant Bank Standard Bidding Documents (SBD). Procurement arrangements are summarized in Table 5.2 below.

Table 5.2

Summary of Procurement Arrangements (UA million)

Project Categories UA ‘0000

ICB NCB Other Short List Non-Bank Funded

Total

1. Civil Works (13.59) 19.91 47.53 (13.59) 67.44 2. Consulting Services Supervision (1.20) 1.20 3.03 (1.20) 4.23 Audit (0.04) 0.04 (0.04) 0.04 Total (13.59) 19.91 (1.24) 1.24 50.56 (14.70) 71.71 ( ) ADF Component Civil Works 5.4.2 Procurement of civil works, amounting to UA 19.38 million, will be carried out using International Competitive Bidding (ICB) procedure, after pre-qualification of contractors, in accordance with the Bank Group “Rules Of Procedure For Procurement Of Goods And Works”.

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Supervision Consulting Services 5.4.3 Procurement of consulting services for supervision, amounting to UA 1.00 million will be undertaken on the basis of short lists of qualified consultants. The selection process will be based on Combining Technical Quality with Price Consideration procedure in accordance with the Bank Group “Rules Of Procedure For The Use Of Consultants”. Audit Consulting Services 5.4.4 Auditing services will be procured on the basis of a shortlist of qualified consultants in accordance with the Bank’s “Rules Of Procedure For The Use Of Consultants”. The selection procedure will be based on comparability of technical proposals and the technical services and selection made on the basis of Lowest Price. As the amount is less that UA 350,000 the Borrower may limit publication announcement to national and regional newspapers. However, eligible consulting firms, being regional or not may express its desire to be short-listed. The contract would be a multi-year with the option of retaining the same consultant. National Procurement Regulations And Executing Agency 5.4.5 The Ghana national procurement laws and regulations have been reviewed and determined to be acceptable. The Executing Agency, the Ghana Highway Authority, will be responsible for the procurement of works and acquisition of consultancy services. The GHA has adequate resources, capacity, expertise and experience to carry out the procurement. General Procurement Notice And Review Procedures 5.4.6 The texts of the General Procurement Notices (GPN) has been agreed upon with the Government and will be issued for publication in the United Nations Development Business Journal upon approval of the proposed loan by the ADF Board of Director. 5.4.7 The following documents are subject to review and approval by the Bank before promulgation: (i) Specific Procurement Notices (SPN); (ii) Requests for Proposals; (iii) Tender evaluation reports, including evaluation of consultant’s proposal, post-qualification analysis, and recommendations for contract award, and (iv) Draft Contracts and Minutes of Contract Negotiations, if these have been amended from the drafts included in the tender invitation documents. 5.5 Disbursement Arrangements Disbursement on the project will be by Direct Payment in accordance with section 7.4 of the Bank’s Disbursement Handbook. The Executing Agency will prepare disbursement applications and retain all disbursement records in the manner prescribed in the Bank’s Disbursement Handbook. 5.6 Monitoring and Evaluation

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5.6.1 The Consultant supervision team will be responsible for the daily supervision of the project during implementation. However, the Director of the Contracts Division in the GHA Development Department will be the officer directly responsible for the project monitoring and evaluation. He will be assisted by a counterpart to the consultant’s resident engineer, designated from the GHA staff, who will be stationed in the field. In addition to the presence of a counterpart resident engineer in the field, the GHA Project Coordinator will actively participate in site meetings and ensure that monthly and quarterly progress reports are prepared and forwarded to the Fund in time. Additionally the Bank will field its own project supervision missions. 5.6.2 The implementation of the environmental mitigating measures will be performed by both the contractor during the construction period and the relevant Government institutions and would be monitored by GHA and the Ghana Environmental Protection Agency (GEPA) based on the GOG established guidelines and procedures. The GEPA is well staffed, and has established regional offices within the country. 5.6.3 Post-construction monitoring has been recommended so as to ensure that the mitigation aspects which have been included in the design of the project such as the rehabilitation of burrow pits, institution of safety instruments, inspection of drainage systems, pedestrian crossings, re-vegetation, etc., have been undertaken. 5.7 Financial Reporting and Auditing 5.7.1 The Executing Agency and the Consultants are required to prepare and submit to the Bank, monthly and quarterly progress reports for the project. The quarterly reports would be prepared in accordance with the Bank’s format. The supervising consulting engineering will prepare a detailed project final report covering both the technical and financial aspects of the project. 5.7.2 In accordance with the Fund’s rules, the Borrower will prepare a Project Completion Report (PCR) within three months of completion of the project. Subsequently, the Fund will prepare its PCR according to the established format. The Fund’s PCR will form the basis for performing post evaluation of the project 5.7.3 Annual financial auditing of the project will be performed from funds provided through the project. Financial reporting and auditing will be conducted in accordance with the Bank’s Guidelines For Financial Reporting And Auditing Of Projects.

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5.8 Aid Co-ordination 5.8.1 Donors actively participated in the formulation of the country’s 1996-2000 Road Sector Expenditure Program and have effectively participated in formulating the 2001-2003 Road Sector Development Program. The project road forms part of these programs. In addition, the Bank has been working in close collaboration with other Donors such as the European Union, OPEC and BADEA who are co-financing the project. The Bank has also been liaising with the World Bank, especially as regards the implementation of the Institutional Support. 5.8.2 Donors’ coordination is handled on a daily basis by the Donor’s Coordination Office in the Ministry of Roads and Transport. The office is presently being financed by the European Union (EU). Monthly in-country donors’ meetings for which the ADB receives minutes and participates if the meeting coincides with a transport sector mission to Ghana supplement the coordination’s office. In addition, all donors that are currently active in the road sub-sector participate in an Annual Highway Sector Donor’s Conference hosted by the Ministry of Roads and Transport. During the conference, the Donor Community and the Government jointly review implementation of the various projects and programs or interventions in the previous year and develop the work program for the following year. 6. PROJECT SUSTAINABILITY AND RISKS 6.1 Recurrent Cost The recurrent maintenance activities, which are in conformity with the Government’s maintenance policy, comprise routine and periodic maintenance. During the construction implementation and guarantee period, recurrent cost for maintaining the project road will form part of the project cost. However, after the contractor defect liability period, the cost becomes the responsibility of the Government. These maintenance activities are financed mainly through the Road Fund. It is estimated that after the completion of the project, and with adequate axle load control, routine maintenance will require US$ 0.10 million annually and periodic maintenance will cost US $6.63 million in the 13th year of the project road. 6.2 Project Sustainability 6.2.1 In the implementation of the current road sub-sector's investment program, routine and periodic maintenance are financed by the Road Fund as well as external donors. Prior to the restructuring of the GRF in 1997, the collections amounted to USD 36.2 million in 1996, which was 35 percent of the USD 102.5 million required as the Fund’s contribution to the road maintenance expenditure. In the year 2000, the Fund collected an amount of USD 88.27 million, amounting to 74.8 percent of the USD 118.00 million required as the Fund’s contribution to the road maintenance expenditure. The Road Fund has so far been properly and efficiently used for road maintenance. It is envisaged that the collection and proper use of these funds will be maintained during and after the project. In addition to the GRF, the Government is currently developing the national road-tolling programme to enhance the collection of funds for road maintenance.

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6.2.2 The fuel levy, which contributes 91 % of the Fund’s revenue, has increased from USD 0.04 per liter in 1996 to USD 0.06 per liter in the year 2000. The current policy is to continue the annual increase in the fuel levy for the Fund until the required funding for maintenance is met. Table 6.1 below shows that the funds through the Road Fund would be adequate for the maintenance activities by the year 2004. The sustenance of the current policy of adjusting the fuel levy until the required funding for maintenance is met will be a loan condition.

Table 6.1

Road Fund Projections Compared With Annual Accrual

PROJECTIONS ACTUALS YEARLY INCREMENT

ACTUAL MTCE. PROG.

YEAR

Increment US ¢

Revenue US $ m

Planned Mtce. Exp. US$ mi

Eqv. US Cents Revenue Eqv. US $m

US $ m

1996 4.0 46 78 4.0 38.68 102.5 1997 5.0 60 107 5.0 49.77 118.0 1998 6.0 74 120 7.0 84.18 138.7 1999 7.0 90 129 6.0 87.98 138.1 2000 8.0 106 127 6.0 83.16 118.0 2001 9.0 124 130 130.0 2002 9.5 136 134 134.0 2003 9.5 136 136 136.0 2004 9.5 136 136 136.0 6.3 Critical Risks and Mitigating Measures 6.3.1 The realization of the total project objectives depends on the assumption that the financing requirement for each of the components will be met in time. Therefore, the Government should conclude the financing arrangements with ECOWAS Fund for its contribution to the project. This would be a loan condition. In addition, the Government counterpart funding is considered critical and should its availability on a regular basis become unattainable, the project will experience delays in its implementation. However, the implementation of each component can commence independent of each other without negatively impacting on the overall project benefits. It is assumed that the rehabilitated road will carry the projected traffic due to its improved surface condition. Another assumption is that the road will receive adequate maintenance to sustain the required level of service during its design life. All the above assumptions are adopted based on information and data collected during the appraisal mission. 6.3.2 In order to secure the Government contribution to the project, the GOG will be required to open an account with a Commercial Bank where each year the GOG contribution required within the framework of the project to finance the year’s work will be deposited. The initial deposit will be a percentage of the project cash flow requirement. Thereafter the quarterly budgetary allotment for the project will be deposited into the account at the beginning of each quarter. This account will be under the control of GHA. The opening of the special account and undertaking to deposit Government’s contribution will be a loan condition. 6.3.3 The Government’s arrears to the contractors have been a stumbling block for the Government to effectively contribute its local component to both new and on-going projects. In

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order to enhance Government’s ability to honour its local component, the Government has already cleared over US$270 million, with US$22 million remaining. The Government has programmed to clear the outstanding arrears by December 2001. In order to avoid slippage on this commitment, the clearing of the outstanding arrears to the contractors will be a loan condition. 6.3.4 Another risk could come from a delay in starting the works, which could lead to an increase in the scope of the works and the related costs due to further deterioration of the pavement over time. This risk will become significant only if the delay in implementing the project is more than 2 years. Also, price escalation could be higher than anticipated, this risk is taken care of by the fact that the cost estimates are in US dollars. 6.3.5 The other risk could be Government failure to implement the Axle Load Control measures as programmed including the installation of weigh-bridges on the project road, and the enforcement of the ECOWAS effective axle load limit of 11.5 tonnes. The installation and operation of the axle load control measures will be a loan condition. 7. PROJECT BENEFITS 7.1 Economic Analysis 7.1.1 The standard methodology of cost-benefits analysis has been used to compare situations with and without the project over a 15-year period, covering the useful life of the project road. The main assumption is that the projected level of service of the road will be sustained by maintenance works, which will largely be funded from the Road Fund. In as far as possible, the HDM-IV was used in the analysis in order to analyze the available data, such as traffic volume and composition (see Annex 6), traffic flows, speed etc. It is projected that the AADT of 3327 in the year 2000 will increase to 3493 by the end of 2001, of which 33.61% are cars, 58.26% are buses and 8.13% are trucks. The freight traffic proportion is projected to rise with an improved road. The Economic Internal Rate of Return (EIRR) was the criterion used to assess the project viability. The calculation of the EIRR was based on the estimated levels of traffic and its development, road maintenance costs, economic costs of investment, the vehicle operating costs. A minimum Economic Internal Rate of Return of 15%, which is the current opportunity cost of capital in Ghana, was selected as a condition of eligibility for the project. 7.1.2 The project economic costs that have been included in the evaluation are estimated at 25.56 million US Dollars. They comprise the construction costs, supervision costs, audit, maintenance costs, and those related to the implementation of the environmental mitigating measures. A 10 per cent physical contingency has also been included. The costs related to the price escalations have been excluded. These costs have been estimated at September 2001 prices. 7.1.3 The economic benefits that have been considered are reductions in vehicle operating costs and avoided maintenance costs. The data and the unit costs were provided by both the Government and the consultants who carried out the studies. 7.1.4 The economic analysis has yielded the EIRR for the entire road. On the basis of the costs and benefits that have been estimated over the 15 year economic life of the project, the entire

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project will yield an Economic Internal Rate of Return of 44.53%. The EIRR for the component that is proposed for ADF funding is 24.47 per cent. These rates are considered satisfactory to warrant financing the entire project and the proposed component for Bank funding. 7.2 Impact on Cross-cutting Issues and Areas of Concern

Impact on Regional Integration and Cooperation (RIC) 7.2.1 The proposed road project will contribute to Government of Ghana’s efforts to enhance regional economic cooperation and integration. In this regard, the financing plan includes ECOWAS Fund, a component of ECOWAS in recognition of the regional importance of the road. In this respect, the ECOWAS Fund is acting on behalf of the its regional member states, including Ghana, Togo, Burkina Faso, Niger, Benin, and Nigeria, and Cote d’Ivoire, which are also Members of the bank Group. The improved road will reduce both physical and non-physical bottlenecks associated with poor transport system. The improved road will be a major relief to the international road transport operators. In addition, by all ECOWAS members adopting the effective axle load limits of 11.5 tones on all trunk roads, including the project road, will remove an important non-physical barrier to the smooth flow of international road traffic. The stated road forms a section of the regional Trans-west African Highway programme. The road carries traffic from regional member countries to and from Ghana’s sea ports of Tema and Takoradi. The share of Ghana’s exports to Africa region largely depends on the fluctuations in its trade within the ECOWAS region, a reflection of the importance of regional trade. For example, in 1999, the share of export to Africa Region in Ghana’s total export declined by 30%, largely owing to a 45 % decline in the export to the ECOWAS Region. In terms of imports from regional members, Nigeria and Cote d’Ivoire are the two major exporters to Ghana, representing nearly 14% and 8% respectively, of Ghana’s total imports. Ghana has set a Free Zone programme whose objective is to enhance commerce within the West Africa sub-regional market and stimulate industrial development for economic growth. The goods and services produced within the Free Zones are destined for foreign markets, including the ECOWAS Region. The improved road will therefore facilitate regional trade by making it more economically attracting to foreign investment in industries engaged in processing and manufacturing of goods within the Ghana Free Zones. With the improved road, Ghana’s exports to the region and Africa in general, will be increased, thereby enhancing economic growth and development.

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Social Impact Analysis 7.2.2 During the implementation of the project, there will be direct and indirect employment for the people within the project area of influence, resulting in raising the income of the households. Accessibility to the production centres and markets, both within Ghana and within the ECOWAS region, as well as to the social facilities such as education and health will be enhanced due to the implementation of the project. Improved accessibility to health facilities will in turn enable the population to devote more time and effort to income generating activities, especially trade and agriculture for the betterment of their families. With an improved road, accessibility to tourist centres such as the Volta River Estuary, will be improved and this will also result in increased income for the local people, especially women who sell their agricultural produce along the road. The interaction with foreigners will expose the local residents to new ideas and information on various aspects of social and economic life. In addition, the delivery of health and education services will benefit from an improved road, which is currently a bottleneck. The main beneficiaries will be women and children who constitute a bigger proportion of the population, resulting in a stronger social fabric. All these benefits will contribute to a healthier and more socially advanced people who reside within the project area of influence. 7.3 Sensitivity Analysis 7.3.1 The factors considered for sensitivity tests were the construction costs and benefits. The analysis shows that with costs increased by 15%, the EIRR for the project is 22.21 per cent and with benefits decreased by 15% the EIRR is 21.87 per cent. In both cases, the project will remain economically viable. In order to minimise the chances of these changes occurring, provisions have been made in the project design, costing and economic analysis. These provisions include: i) allowing for 10 per cent contingency on physical costs, ii) applying a medium traffic growth rate of 5 per cent compared to the projected 8% in the Vision 2020, iii) the proposed monitoring and supervision arrangement, and iv) the axle load control measures to be introduced. These measures will minimize the probability that costs and benefits will go up and down respectively, by more than 15 per cent. The results of the sensitivity tests are presented in the Annex 6. 7.3.2 The analysis has demonstrated that the project is economically viable and that it remains viable even in cases where costs increase or benefits decrease by 15%.

31

8. CONCLUSION AND RECOMMENDATIONS 8.1 Conclusions 8.1.1 The Tema-Aflao Road, which commences at the Tema Junction east of Accra in the Greater Accra Region and ends at Aflao on the Togo border in the Volta Region is considered as an important international road in the South–east of Ghana, forming part of the Trans-West African Highway. The road links Ghana with her ECOWAS trading partner-countries, especially Togo, Benin, Nigeria and Niger. The road has deteriorated so much that it imposes high transport and user costs, hence retards regional economic cooperation and integration. The feasibility, environmental and detailed engineering design studies that were done for the project road have proven that the project is economically, environmentally and technically sound. Consequently, the rehabilitation of the Tema – Aflao Road, which is included in the Government’s Road Sector Development Program, has the support of the Donor Community active in the sector in Ghana. The Road Sector Investment Program is part of the Comprehensive Development Framework, which has been developed with a view to assisting the Government implement its Vision 2020. The economic analysis has determined that the implementation of the project is economically viable. 8.1.2 The project will enhance the flow of regional and inter-regional traffic and trade, and reduce road user costs, thereby strengthening regional economic integration. The road safety measures that will be put in place will enhance safety standards on the project road. The project will also facilitate easier access by the farmers and traders to markets that will generate income hence augment the Government’s efforts in achieving economic development and reducing poverty. 8.2 Recommendations and Conditions for Loan Approval 8.2.1 It is recommended that an ADF Loan not exceeding UA 14.70 million for the implementation of the project described herein be granted to the Government of Ghana subject to the following conditions: A. Conditions Precedent to the Entry into Force of the Loan Agreement

i) The entry into force of the loan agreement will be subject to the fulfillment by the Borrower of the conditions set forth in Section 5.01 of the General Conditions Applicable to Loan Agreement and Guarantee Agreements of the Bank.

ii) The Government shall submit to the Fund, documentary evidence that the

ECOWAS FUND commitment to fund its contribution to the project has been concluded with the Government (para 6.3.1)

32

B. Conditions Precedent to First Disbursement

The obligations of the Fund to make the first disbursement of the loan will be conditional upon entry into force of this Loan Agreement as provided for in A above, and the borrower will have to the satisfaction of the Fund: i) Appointed a project coordinator and counterpart resident engineer whose

qualifications and experience are acceptable to the Fund (par 5.2.1) ii) Opened a Special Account with a Bank acceptable to the Fund to be

managed by the Ghana Highway Authority and undertake to deposit its own contribution to the project financing in the said Special Account (par 6.3.2)

iii) The Government will submit to the Bank, a policy letter with respect to

the future increases of the Fuel Levy. The letter would provide the Government’s plan for achieving the Road Fund target amount of USD 130 million per annum whether through the fuel levy target level of USD 0.095 per liter or by increasing other revenue sources of the Road Fund (par 6.2.2).

ìv) The Government should submit evidence that the road contract Arrears,

currently amounting to approximately USD 22 million have been fully settled (par. 6.3.3).

v) The Government should submit to the Bank, a policy letter with respect to

how it proposes to manage and operate the Axle Load Control System that it intends to establish nationwide (par 6.3.5).

C. Other Condition

i) Ensure that all mitigating measures relating to the environmental impact of the project are implemented and monitored (par 5.2.2).

ii) Ensure that the initial amount of funds to meet the local component of the

advance payment requirements have been deposited in the Special Account (par 6.3.2)

GHANA ANNEX 1 1 TEMA AFLAO ROAD PROJECTTEMA AFLAO ROAD PROJECT

COUNTRY MAP

This map was provided by the African Development Bank exclusively for the use of the readers of the report to which it is attached. The names used and the borders shown do not imply on the part of the Bank and its members any judgement concerning the legal status of a territory nor any approval or acceptance of these borders.

GHANA ANNEX 2TEMA - AFLAO ROAD REHABILITATION PROJECT

AKATSI - AFLAO SECTIONGHAHA HIGHWAY AUTHORITY

ORGANIZATIONAL CHART

LEGAL SERVICES DIVISION

INTERNAL AUDIT DIVISION

DIRECTLY RELATED TO THEPROJECT IMPLEMENTATION

DIVISION OF PERSONNELDIRECTOR

DIVISION OF FINANCEDIRECTOR

DIVISIONOF PUBLIC RELATIONSDIRECTOR

DIVISION OF TRAININGDIRECTOR

DIVISION OF INFORMATION SYSTEMSDIRECTOR

DEPARTMENT OF ADMINISTRATIONDEPUTY CHIEF EXECUTIVE

DIVISION OF PLANNINGDIRECTOR

DIVISION OF SURVEY & DESIGNDIRECTOR

DIVISION OF CONTRACTSDIRECTOR

DIVISION OF MATERIALSDIRECTOR

DIVISION OF BRIDGESDIRECTOR

DIVISION OF SAFETY & ENVIRONMENTDIRECTOR

DEPARTMENT OF DEVELOPMENTDEPUTY CHIEF EXECUTIVE

HIGHWAY REGIONAL OFFICES (10)DIRECTORS

DIVISION OF ROAD MAINTENANCEDIRECTOR

DIVISION OF PLANT & EQUIPMENTDIRECTOR

DIVISION OF STORES & SUPPLIESDIRECTOR

DEPARTMENT OF MAINTENANCEDEPUTY CHIEF EXECUTIVE

CHIEF EXECUTIVE

BOARD OF DIRECTORS

MINISTRY OF ROADS AND HIGHWAYS

Annex 3 Page 1/2

GHANA TEMA AFLAO ROAD PROJECT

APPRAISAL REPORT A) ENVIRONMENTAL CATEGORY: II JUSTIFICATION FOR ENVIRONMENTAL CATEGORIZATION The project has been classified as category II, indicating that the requisite mitigation measures have been recommended for the minor negative aspects associated with the project and included into its design. An EIA was carried out to form part of the feasibility study and the mitigation measures earmarked have been integrated into the design and budgeting of the project. BRIEF DESCRIPTION OF THE PROJECT The Tema-Aflao Road forms part of the Trans-West African Highway, linking Greater Accra and the Volta Regions. This road links Ghana with her eastern ECOWAS Trading partners, especially Togo, Benin, Nigeria and Niger. The project outputs shall consist of the following: (i) the Tema – Akatsi component would consist of the reconstruction of a 118-kilometers of single carriageway trunk road. The cross section would consist of a single carriageway of 7.3-m width and asphaltic concrete surfacing of 5 centimeters with 0.25-m road edge marking and 2.5-m surface dressed shoulders on each side of the road, and (ii) the Akatsi – Aflao component, which would consist of the reconstruction of a 41-kilometers of single carriageway trunk road. The cross section would consist of a single carriageway of 7.3-m width and asphaltic concrete surfacing of 5 centimeters with 0.25-m road edge marking and 2.5-m surface dressed shoulders on each side of the road. It also includes construction of a 7- kilometer by-pass starting at the Akatsi town entrance and ending at the Abor town entrance with the cross section as mentioned. The final 7-kilometers of the project from Denu to Aflao is heavily built-up along the alignment. Therefore the construction shall retain the existing road width as much as possible in order to avoid the displacement of people. B) POTENTIAL ENVIRONMENTAL IMPACTS

i) Dust and noise pollution as a result of construction vehicular movements; removal of laterite, and gravel from quarry sites; and siting of asphalt plants during construction;

ii) Pollution risk to nearby water courses; iii) Silting and destruction of bridges and culverts;

Annex 3

Page 2/2 iv) Accidents and deaths as a result of the lack of pedestrian walk-ways and other safety features; v) Disruption of utility services; vi) Slope erosion; vii) Poor access roads; and viii) Potential land lost

C) MITIGATION MEASURES

i) A full rehabilitation of burrow pits will be carried-out. This aspect has been included within the project design budget; ii) The compensation value for the reclamation of burrow pits and payment for land on which burrow pits have been dug and the by-

pass is constructed is put at $1,100,000; iii) Steep slopes which will experience erosion will be stabilized; iv) Roads will be watered twice daily to reduce dust pollution v) Utility services which will be disrupted, will be re-instated as rapidly as possible;

vi) Access roads will be improved, bridges and culverts re-installed and pedestrian walkways and guard rails installed; vii) Other safety features including reflectors, stop signs, speed bumpers and police traffic directors and patrol so as to reduce vehicular

and human accidents; and viii) Run-off will be re-directed or tailing ponds established so that run-offs may not enter water courses.

D) PUBLIC CONSULTATION & DISCLOSURE REQUIREMENTS

During implementation of the project, the Government and the consultants will periodically discuss the project objectives and the implementation with the stakeholders, with the view to ensuring the stakeholders fullest participation in the project. Against this background, the initial consultation will take place as soon as the consultants have been engaged.

F) RE-SETTLEMENT PLAN REQUIRED

There will be no re-settlement and therefore no re-settlement plan will be required.

ANNEX 4 GHANA

TEMA-AFLAO ROAD REHABILITATION PROJECT PROVISIONAL LIST OF GOODS AND SERVICES

Project Categories US$ Million UA Million Co financiers (UA million) F. E. L. C. TOTAL F. E. L. C. TOTAL ADF KFW ECOWAS GOG 1. WORKS 1. 1 Civil Works 53.04 20.29 73.33 42.58 16.29 58.87 11.70 39.59 3.77 3.812. CONSULTANCY SERVICES 2. 1 Supervision of Works 3.18 1.22 4.40 2.55 0.98 3.53 1.06 2.04 0.43 0.002.2 Project Audit 0.05 0.00 0.05 0.04 0.00 0.04 0.04 0.00 0.00 0.00BASE COST 56.27 21.51 77.78 45.17 17.27 62.44 12.80 41.63 4.20 3.81CONTINGENCIES 8.31 3.24 11.55 6.67 2.60 9.27 1.90 6.18 0.62 0.57TOTAL COST 64.58 24.75 89.33 51.84 19.87 71.71 14.70 47.81 4.82 4.38

ANNEX 5 GHANA GHANA

TEMA – AFLAO ROAD REHABILITATION PROJECT TEMA – AFLAO ROAD REHABILITATION PROJECT IMPLEMENTATION PLAN IMPLEMENTATION PLAN

Task NamePROJECT IMPLEMENTATION ACTIVITIES

LOAN PROCESSING

PROJECT APPRAISAL

LOAN NEGOTIATIONS

LOAN APPROVAL

GPN PREPARED/ISSUED

SUPERVISION CONSULTING SERVICES

RFP ISSUED/EVAL. APPROVED

CONTRACT NEGOTIATIONS

CONSULTANT APPOINTED

CONSULTANCY SERVICES (WORKS)

CONSULTANCY SERVICES PERIOD (Def. Liab.)

CONTRACTOR/CIVIL WORKS

SPECIFIC PROCUREMENT NOTICE

PRE-QUALIFICATION

TENDER PROCESS

CONTRACT NEGOTIATIONS/AWARD

CIVIL WORKS PERIOD

DEFECT LIABILITY PERIOD ENDS

AUDITING CONSULTING SERVICES

RFP ISSUED/EVAL. APPROVED

CONTRACT NEGOTIATIONS/AWARD

AUDIT SERVICES PERIOD

23/06 07/07

15/10 17/10

14/11 14/11

15/12 15/12

15/02 14/06

17/06 19/07

22/07 26/07

26/08 31/03

01/04 28/04

30/04 30/04

01/07 30/08

02/09 16/12

17/12 03/02

03/03 28/02

01/03 28/02

01/08 14/11

01/12 30/01

27/02 31/05

J FMA MJ J A S O ND J FMA MJ J A S OND J FMA MJ J A S OND J FM M J J A S O ND J FMA MJ J A S O ND J FMA MJ J A S OND2001 2002 2003 2004 2005 2006

ANNEX 6 Page 1/2

GHANA TEMA AFLAO ROAD REHABILITATION PROJECT

TRAFFIC FORESCAST OF THE TEMA-AFLAO ROAD AADT

ITEM

Tema-

Dawhenya

Dawhenya-

Kasseh

Kasseh-

Sogakope

Sogakope-

Akatsi

Akatsi-Denu-Aflao

TOTAL

Length (km) 11 54 21 32 48 166 Cars 1637 1136 747 637 432 829 Buses 2447 1858 1147 1419 1491 1491

1997

Freight 859 213 180 152 97 207

2527 Cars 8.1 Buses 6.9

1998-2001 (%)

Freight 6.8 Cars 7.3 Buses 6.5

2002-2008 (%)

Freight 5.3 Cars 6.5 Buses 6.1

2009 (%)

Freight

TRAFFIC GROWTH RATES ( BASIC SCENARIO)

4.4 Cars 2167 1504 989 843 572 1174 Buses 3122 2371 1464 1811 1268 2035

2001

Freight 1093 271 229 193 123 284

3493

Cars 2678 1858 1222 1042 707 1356 Buses 3772 2864 1768 2187 1532 2297

2004

Freight 1276 316 267 226 144 310

3963

Cars 6270 4351 2861 2440 1655 3175 Buses 8405 6382 3940 4874 3414 5120

2019

Freight 2380 590 499 421 269 578

8873

Bank Updated Estimates based on Report by RENARDET INGENIEURS CONSEIL, May 1998

GHANA ANNEX 6

TEMA AFLAO ROAD PROJECT PAGE 2/2RESULTS OF THE ECONOMIC ANALYSIS

Year Construction Cost milllion. Annual Maint. Cost Annual Benefits Cash-Flow million $

2002 4.8112 -4.82003 6.2274 -6.22004 6.1304 5.256 -0.92005 1.6005 5.321 3.72006 1.746 5.344 3.62007 0.1 5.214 5.12008 0.1 5.054 5.02009 0.1 4.914 4.82010 0.1 4.795 4.72011 0.1 4.657 4.62012 0.1 4.452 4.42013 0.1 4.265 4.22014 6.63 5.102 -1.52015 0.1 5.489 5.42016 0.1 5.541 5.4

Economic Internal Rate of Return 24%

GHANA

TEMA AFLAO ROAD PROJECT SUMMARY OF ECONOMIC EVALUATION

BASIC SOLUTION WITH AXLE LOAD CONTROL AND MONITORING

INTERNAL RATE OF RETURN (EIRR) %

Section Number.

Description Section Length (KM)

Sect. Alt.

Basic Fin. Cost US $ ML

Basic-Econ. Cost US$ MIL. SCO SCI SC2

1 Tema-Dawhenya

11.0 2 7.954 6.761 58.98 53.93 53.16

2 Dawhenya-Kase

54 2 22.343 18.992 62.38 57.13 56.33

3 Kase-Sogakope

21.0 2 9.991 8.493 40.30 36.86 36.34

4 Sogakope-Akatsi

32.2 2 22.70 18.478 42.20 38.47 32.40

5 AKATSI-AFLAO

48.0 2 26.35 25.55 24.47 22.21 21.87

TOTAL TEMA-AFLAO

166.2 2 89.33 78.27 44.53 40.68 39.09

KEY SC0= BASIC SCENARIO SECT. NO. =SECTION NUMBER SC1= COSTS + 15% SC2= VEHICLE OPERATING COSTS BENEFITS-15% SECTION ALT=SECTION ALTERNATIVE

Annex

REPUBLIC OF GHANA CORRIGENDUM TO THE APPRAISAL REPORT

The Appraisal Report for the Tema-Aflao Road Rehabilitation Project (Akatsi-Aflao Section) has been amended on the basis of the Outcome of the Loan Negotiations as follows: All changes appear in italic bold PROJECT INFORMATION SHEET Page i 5. EXECUTING AGENCY : Ghana Highway Authority (GHA)

P.O. Box 1641, Accra, Ghana Tel: 233-21-66 39 22/66 31 62 Fax: 233-21-66 20 51/66-55-71 page ii 13. CONSULTANCY SERVICES :

REQUIRED AND STAGE OF SELECTION Consulting services for supervision of

construction works and audit services will be procured on the basis of a short list of consulting firms. The selection process for supervision of works will be based on combined Technical Quality and Price Combination; whereas that of audit services would be based on comparability of technical proposals and least cost .

Page iv LIST OF ABBREVIATIONS MFEP Ministry of Finance and Economic Planning was deleted

Page viii EXECUTIVE SUMMARY 6. SOURCES OF FINANCE The project is divided into two parallel financed sections. One section (48-km) will be co-financed by the ADF, ECOWAS and the Government of Ghana, and the other (118-km) by the KFW and the Government of Ghana. The Bank will make available UA 14.70 million for the project. This amount represents 20.50% of the total project cost and 69.50% of the ADF project. The ADF loan will be used towards financing 28.36% of the total project foreign cost. KFW is expected to contribute UA 47.81 million and ECOWAS an amount of UA 4.82 million for the project. The Government of Ghana contribution will be UA 4.38 million. The ADF will finance the total cost of its project audit, along with 100% and 69.3%of the foreign exchange of the its project supervision and civil works respectively. The ADF contribution to the foreign cost of its project will be UA 14.70 million. Page ix 8.1 CONCLUSIONS The Tema-Aflao Road, which commences at the Tema Junction east of Accra in the Greater Accra Region and ends at Aflao on the Togo border in the Volta Region is considered as an important international road in the South–east of Ghana, forming part of the Trans-West African Highway. The road links Ghana with its ECOWAS trading partner-countries, especially Togo, Burkina Faso, Benin, Nigeria and Niger. The road has deteriorated so much that it imposes high transport and user costs, hence retards regional economic cooperation and integration. The feasibility, environmental and detailed engineering design studies that were done for the project road have proven that the project is economically, environmentally and technically sound. Consequently, the rehabilitation of the Tema – Aflao Road, which is included in the Government’s Road Sector Development Program, has the support of the Donor Community active in the sector in Ghana. The Road Sector Investment Program is part of the Comprehensive Development Framework, which has been developed with a view to assisting the Government implement its Vision 2020. The economic analysis has determined that the implementation of the project is economically viable.

MAIN TEXT

Page 1 1.2 Since 1996, the road sub-sector of the Ministry of Roads and Transport has been implementing the policy reforms and the road investment rolling programme-the Road Sub-Sector Investment Programme (ROSSIP). The ROSSIP is currently driven by the Highway Sector Investment Programme (HSIP) that is scheduled for completion in December 2001. The Road Sector Development Program, (RSDP), which was approved in July 2001, would succeed the HSIP starting January 2002 to 2005. The ROSSIP is financed from both local and external sources. The local funding is from the central government’s Consolidated Fund and the Road Fund. External resources are in the form of grants, concessional loans, and non-concessional credits accruing from bilateral and multilateral donors. 1.4 This appraisal report is based on the feasibility and detailed engineering reports prepared by the Consultants, documents prepared by the Ghana Highway Authority (GHA), discussions held with

Ministries/Agencies of GOG, as well as information/data gathered by the Bank appraisal mission to Ghana in June 2001. Page 2 Railways 2.1.4 The Ghana Railway Corporation (GRC) operates a network of about 950-km of railways. The three main lines are the Western line (Takoradi port to Kumasi including the Dunkwa to Awaso Branch), the Eastern line (Accra to Kumasi including the Accra to Tema Branch), and the Central line (Huni Valley to Kotoku Junction including the Achiasi Junction to Kade Branch). An estimated 0.615 million passengers and 1.158 million tons of freight were carried by GRC in 2000, representing a decrease of 58.2% and an increase of 19% respectively from the 1999 aggregate data. Inadequate maintenance facilities, rolling stock and spare parts along with insufficient revenues from commercial traffic have negatively affected the railway system. Currently, it depends heavily on Government subsidy, which has facilitated the sustenance of uneconomical and low tariffs. The railway transport is now being restructured, which should lead to the divestiture of the corporation. Page 3 Air Transport 2.1.5 The Ghana Civil Aviation Authority (GCAA) is responsible for development, maintenance and operation of aviation infrastructure. GCAA provides navigational services and operates Kotoka International Airport (KIA) and four domestic airports, Kumasi, Sunyani, Tamale and Wa. Kotoka International Airport is the international gateway for air traffic into Ghana and serves about 15 different international airlines, including the national airline Ghana Airways. In 2000 passenger traffic was 572,276 and approximately 46,826 tones of cargo were handled as compared to 553,000 and 46,700 respectively in 1999. The four domestic airports, Kumasi, Sunyani, Tamale and Wa, are served by the national airline, Ghana Airways, since the two privately owned airlines went out of business in 2000. The GCAA is continuing its improvement program for the international airport, while the national airline has increased its regional, continental and intercontinental services. Page 4 2.2.1 The transport sector is the responsibility of two Ministries; (i) the Ministry of Transport and Communications (MTC), which is responsible for formulating and monitoring policies in the transport sector, establishing the regulatory framework for transport operations, creating the enabling environment for investment and the development of an integrated transport system. The Ministry also has oversight responsibility for the Parastatals, including GCAA, GRC GPHA and VLTC; (ii) the Ministry of Roads and Highways (MRH), which is responsible for planning, and implementation of the road sub-sector development programs through the Department of Urban Road (DUR) and Department of Feeder Road (DFR) within the Ministry and the Ghana Highway Authority. These activities are undertaken in close consultation with the Ministry of Finance (MOF).

The relationship between MTC, MRH and the various public agencies is well established. In order to streamline the procedures and to effectively carry out sector-wide functions, investment planning, policy formulation, transport regulations and monitoring of transport projects under their purview, Institutional strengthening of the Ministries is continuing under the current Road Sector Development Program. Page 5 3.1.2 About 5,551-km of trunk roads and 1649-km of urban roads are paved. The remaining 7,651-km of trunk and town, 1260 of urban roads and the 24,000-km of feeder roads are essentially of gravel or earth surface. Of the 24,000 km of Feeder roads only 50 percent are in maintainable condition. The Government initiated a trunk road stabilization plan in 1988 to improve the deteriorated trunk road network. Despite the improvements brought about by this initiative, the sub-sector only began to experience significant improvement since 1998 with the implementation of the rolling road sector development program. Some of the noted achievements are (i) overall improvement in the road condition between 1999 and 2000 by an increase from 32.7% to 38.7% good, a decrease from 36.9% to 34.0% fair and 30.4% to 27.3% bad (ii) restructuring of the road agencies with emphasis on capacity building in terms of training and technical assistance for a more efficient, effective and sustainable management in the national road network, (iii) restructuring of the Road Fund with a management board with full authority for the disbursement of the funds, (iv) Annual increase in the road user fees resulting in reliable funding for road maintenance, and (v) arrears payments to contractors engaged in the implementation of the 1996-2000 road sub-sector investment program being actively pursued. Page 7

Table 3.1 GRF Revenues From Various Sources (USD million)

SOURCE 1999 2000 2001 2002 2003 Total

Fuel levy 87.98 83.16 81.90 89.50 89.30 428.20 Tolls 2.46 2.68 2.06 1.92 2.02 11.14 Vehicle Registration Fees 4.76 3.16 2.56 2.39 2.63 15.49 Road Use fees 3.22 2.39 1.98 1.84 1.94 11.37 International Transit fee 0.21 0.14 0.09 0.10 0.09 0.64 Total Revenue 98.25 88.27 88.59 95.75 95.97 466.83 Source: Ghana Road Fund Board Page 14 4.3.2 The Tema - Aflao Road, which forms part of the ECOWAS sponsored coastal Trans-West African Highway, carries national, regional and international traffic, thereby fostering economic development as well as regional trade and integration. The road provides an important link in the integration of the administrative and economic activities within Ghana and between Ghana and its ECOWAS trading neighbors/partners, including, Togo Niger, Benin, Burkina Faso and Nigeria. The road has deteriorated so much that it imposes serious traveling difficulties, high transport costs and safety problems. These problems have contributed to reduced agricultural production and industrial activities and also constrain the development of the tourist industry that could otherwise facilitate socio-economic development, reduce poverty and overall regional integration.

The road is considered by the Government to be one of the critical roads that need immediate attention in order to reduce poverty especially in the Volta Region, which is one of the poorest regions in the country. Consequently, the road has been included in the current Road Sub-sector Development Program. The project, as designed, will facilitate regional integration activities as well as access to social services and markets. Page 16 A. Civil Works 4.5.2. The total project road (166-km) is designed for 15 years design life for an equivalent standard axle load (ESAL) of 11.5 tons with a designed speed of 100-km/hr for the highway and 60-km/hr for the built-up areas using the TRRL Overseas Road note 31 and AASHTO as design Standards. Based on topography, current and projected traffic level and the amount of frontage development, the road was divided into five sections. However for financing purposes, the five sections have been reduced to two sections. The road works shall include earthworks, construction of a by-pass, minor repairs on 8 (eight) bridges, repair and construction of drainage structures, pavement works installation of toll and axle load control facilities, road safety features and miscellaneous works. However, the ADF project does not include any bridge works. Page 17

Negative Impacts 4.6.3 The potential negative effects of the project may include, unreclaimed borrow pits, slope erosion, water pollution by surface wash, dust pollution and disruption of utility services, poor access roads, silting and destruction of bridges and culverts. The improved road will generally follow the same alignment, and in this respect, the project has been classified as Category II (Annex 3).

Mitigation Measures 4.6.4 The requisite mitigation measures have been incorporated into the design of the project to reduce or alleviate any potential negative aspects associated with the project. They will include full rehabilitation of borrow pits, land and contractor’s camp. The cost for enhancement measures and compensation value for the reclamation of burrow pits and payment for land on which burrow pits have been dug, has been incorporated in the project’s construction cost. During construction, slopes, which may experience erosion, will be stabilized. The roads will be watered daily, to reduce dust pollution. During construction, utility services, which will be disrupted, will be re-instated as rapidly as possible. Those institutions and areas affected will be sufficiently notified, access roads and detours will be improved and provided where necessary, bridges, and culverts re-installed, and pedestrian walk ways and guard rails installed. Maximum safety features will be installed, including reflectors, stop signs, and speed bumpers. Police patrol will also be put into place to reduce vehicular and human accidents. The Ghana Highway Authority in collaboration with the Ministry of Environment, Science and Technology will prepare an Environment and Social Management Plan acceptable to the Bank. This will be a loan condition. Page 20

Table 4.4 ADF Project Category of Expenditure by Source of Financing

(UA Million) Source/Category ADF ECOWAS FUND GOG TOTAL CIVIL WORKS 13.81 4.47 1.63 19.91 CONSULTING SERVICES 0.89 0.35 0.00 1.24 TOTAL 14.70 4.82 1.63 21.15

Table 4.5 ADF Project Expenditure Schedule by Category

(UA Million) CATEGORY 2002 2003 2004 2005 2006 TOTAL CIVIL WORKS 0.00 8.46 8.33 1.90 1.22 19.91 CONSULTING SERVICES 0.15 0.40 0.39 0.19 0.11 1.24 TOTAL 0.15 8.86 8.72 2.09 1.33 21.15 Page 21

Table 4.6 The ADF Project Expenditure Schedule by Source of Financing

(UA million) Source 2002 2003 2004 2005 2006 TOTAL % ADF 0.12 6.16 6.07 1.49 0.86 14.70 69.50 ECOWAS FUND 0.03 2.02 1.98 0.43 0.36 4.82 22.79

GOG 0.00 0.68 0.67 0.17 0.11 1.63 7.71 TOTAL 0.15 8.86 8.72 2.09 1.33 21.15 100.00 5.2.1 The Development Department within the GHA is responsible for the planning and implementation of all road projects. The Director of the Contracts Division of this Department will be the officer directly responsible for the project implementation. A project coordinator who will be based at GHA will assist him along with a counterpart resident engineer designated from the GHA staff who will be stationed on the field. The designation of the project coordinator and the counterpart resident engineer will be a loan condition.

Table 5.2 Summary of Procurement Arrangements

(UA million) Project Categories UA ‘0000

ICB NCB Other Short List Non-Bank Funded

Total

1. Civil Works (13.81) 19.91 47.53 (13.81) 67.44 2. Consulting Services Supervision (0.85) 1.20 3.03 (0.85) 4.23 Audit (0.04) 0.04 (0.04) 0.04 Total (13.81) 19.91 (0.89) 1.24 50.56 (14.70) 71.71 ( ) ADF Component Page 25

5.6.1 The Consultant supervision team will be responsible for the daily supervision of the project during implementation. However, the Director of the Contracts Division in the GHA Development Department will be the officer directly responsible for the project monitoring and evaluation. He will be assisted by a counterpart to the consultant’s resident engineer, designated from the GHA staff, who will be stationed in the field. In addition to the presence of a counterpart resident engineer in the field, the GHA Project Coordinator will actively participate in site meetings and ensure that monthly and quarterly progress reports are prepared and forwarded to the Fund in time. Additionally the Bank will field its own project supervision missions at least 1.5 times per annum. Page 31 8.2.1 It is recommended that an ADF Loan not exceeding UA 14.70 million for the implementation of the project described herein be granted to the Government of Ghana subject to the following conditions: A. Conditions Precedent to the Entry into Force of the Loan Agreement

i) The entry into force of the loan agreement will be subject to the fulfillment by the Borrower of the conditions set forth in Section 5.01 of the General Conditions.

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B. Conditions Precedent to First Disbursement

The obligations of the Fund to make the first disbursement of the loan will be conditional upon entry into force of this Loan Agreement as provided for in A above, and the fulfillment by the borrower of the following conditions. The borrower shall have to the satisfaction of the Fund: i) Provided evidence of having appointed a Project Coordinator and a

Counterpart Resident Engineer both whose qualifications and experience shall be subject to the approval of the Fund prior to their appointment (par 5.2.1);

ii) submitted documentary evidence satisfactory to the Fund that a co-financing

agreement has been concluded with the ECOWAS FUND for the financing of the Project and that such agreement is effective in accordance with it's terms and that ECOWAS FUND has accepted to use the Fund's for procurement of goods , works and services (para 6.3.1);

iii) Provided evidence of opening a Special Account to be managed by Ghana Highway Authority in a bank acceptable to the ADF, where counterpart funds will be deposited and also provided a written undertaking to deposit its own contribution in the Special Account in accordance with the Financing Plan (par 6.3.2);

iv) Submitted a Policy Letter to the Fund describing Government's policy towards future increases of the fuel levy, and the Governments plans to achieve the Road Fund target amount of USD 130 million per annum by attaining a fuel levy target of USD 0.095 per litre and/or by increasing other revenue sources of the Road Fund (par 6.2.2);

v) Provided evidence of the full payment by the Borrower of the Road Contract Arrears of approximately USD 22 million to eligible contractors (par. 6.3.3);

vi) Submitted a Policy Letter to the Fund describing the measures Government shall implement to manage and operate the Axle Load Control System to be established throughout Ghana (par 6.3.5).;

vii) Submitted an Environmental and Social Management Plan acceptable to the Fund (par 4.6.4)

C. Other Condition

The Borrower shall during the implementation of the Project:

i) Disburse to the Project, counterpart funds for each year of Project implementation, in accordance with the financing plan agreed with the Fund (par 6.3.2);

ii) Ensure that mitigating measures relating to environmental impact of the Project are implemented and monitored (par 5.2.2).;

Annex 2 ORGANIZATIONAL CHART FOR GHA

GHANA ANNEX 2TEMA - AFLAO ROAD REHABILITATION PROJECT

AKATSI - AFLAO SECTIONGHAHA HIGHWAY AUTHORITY

ORGANIZATIONAL CHART

LEGAL SERVICES DIVISION

INTERNAL AUDIT DIVISION

DIRECTLY RELATED TO THEPROJECT IMPLEMENTATION

DIVISION OF PERSONNELDIRECTOR

DIVISION OF FINANCEDIRECTOR

DIVISIONOF PUBLIC RELATIONSDIRECTOR

DIVISION OF TRAININGDIRECTOR

DIVISION OF INFORMATION SYSTEMSDIRECTOR

DEPARTMENT OF ADMINISTRATIONDEPUTY CHIEF EXECUTIVE

DIVISION OF PLANNINGDIRECTOR

DIVISION OF SURVEY & DESIGNDIRECTOR

DIVISION OF CONTRACTSDIRECTOR

DIVISION OF MATERIALSDIRECTOR

DIVISION OF BRIDGESDIRECTOR

DIVISION OF SAFETY & ENVIRONMENTDIRECTOR

DEPARTMENT OF DEVELOPMENTDEPUTY CHIEF EXECUTIVE

HIGHWAY REGIONAL OFFICES (10)DIRECTORS

DIVISION OF ROAD MAINTENANCEDIRECTOR

DIVISION OF PLANT & EQUIPMENTDIRECTOR

DIVISION OF STORES & SUPPLIESDIRECTOR

DEPARTMENT OF MAINTENANCEDEPUTY CHIEF EXECUTIVE

CHIEF EXECUTIVE

BOARD OF DIRECTORS

MINISTRY OF ROADS AND HIGHWAYS