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Document of The World Bank
FOR OFFICIAL USE ONLY
Report No: 47324-GH
PROJECT APPRAISAL DOCUMENT
ON A
PROPOSED CREDIT
IN THE AMOUNT OF SDR 150.5 MILLION (US$225.0 MILLION EQUIVALENT)
TO THE
REPUBLIC OF GHANA
FOR A
TRANSPORT SECTOR PROJECT
May 20, 2009
Transport Sector Country Department AFCW1 Africa Region
This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.
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CURRENCY EQUIVALENTS
Exchange Rate Effective: March 3 1,2009
Currency Unit = Ghanaian Cedi (GH$) US$1 = GH61.41 US$1 = SDR0.66864
AADT AFD AIDS BAS BADEA BP CIDA DANIDA DfI D DFR DP DUR DVLA EA EC EIA EMP EO1 EOP EPA EIRR ERR ESMF FBS FMT FYRR GACL GCAA GEF GHA GIMPA GIS GMA GOG
FISCAL YEAR January 1 - December31
ABBREVIATIONS AND ACRONYMS
Annual Average Daily Traffic Agence Frunpise de De'veloppement (French Development Agency) Acquired Immune Deficiency Syndrome Beneficiary Agencies Arab Bank for Economic Development in Africa Bank Procedure Canadian International Development Agency Danish International Development Agency Department for International Development Department o f Feeder Roads Development Partner Department o f Urban Roads Driver and Vehicle Licensing Authority Environmental Assessment European Commission Environmental Impact Assessment Environmental Management Plan Expression o f Interest End o f Project Environmental Protection Agency Economic Internal Rate o f Return Economic Rate o f Return Environmental and Social Management Framework Fixed Budget Selection Financial Management Team First Year Rate o f Return Ghana Airports Company Limited Ghana Civil Aviation Authority Global Environment Facility Ghana Highway Authority Ghana Institute o f Management and Public Administration Geographical Information System Ghana Maritime Authority Government o f Ghana
GPHA GPRS GRCL GRDA GTTC HDM HIV IAs I C ICB ICAO IDA IFR IRI ITP KIA KNUST LCS MDAs M I C MMDAs MRH MOFEP M O T MTR NCB NMT NPV NRA NRSC NRSS NTP OP PAD PDO PFM P I M PIT PPP PSC PSP PT QCBS RAI RAP RPF
Ghana Ports and Harbors Authority Growth and Poverty Reduction Strategy Ghana Railway Company Ltd. Ghana Railway Development Authority Government Technical Training Center Highway Development and Management Model Human Immunodeficiency Virus Implementing Agencies Individual Consultants International Competitive Bidding International Civi l Aviation Organization International Development Agency Interim Unaudited Financial Report International Roughness Index Integrated Transport Plan Kotoka International Airport Kwame Nkrumah University o f Science and Technology Least Cost Selection Ministries, Departments, and Agencies Middle-Income Country Metropolitan, Municipal, and District Assemblies Ministry o f Roads and Highways Ministry o f Finance and Economic Planning Ministry o f Transport Mid-Term Review National Competitive Bidding Non-motorized Transport Ne t Present Value National Roads Authority National Road Safety Commission National Road Safety Strategy National Transport Policy Operational Policy Project Appraisal Document Project Development Objectives Public Financial Management Project Implementation Manual Project Implementation Team Public Private Partnership Project Steering Committee Private Sector Participation Procurement Team Quality and Cost Based Selection Rural Accessibility Index Resettlement Action Plan Resettlement Policy Framework
RMU RSDP SBD SDR SIA SIL TOR TSDP TSP us VLTC voc
Regional Maritime University Road Sector Development Program Standard Bidding Document Special Drawing Rights Social Impact Assessment Sector Investment Lending Terms of Reference Transport Sector Development Program Transport Sector Project United States Volta Lake Transport Company Vehicle Operating Cost
Vice President: Obiageli Katryn Ezekwesili
Sector Director: Inger Andersen Sector Manager: C. Sanjivi Rajasingham
Country ManagerDirector: Ishac Diwan
Task Team Leader: Ajay Kumar
GHANA
TRANSPORT SECTOR PROJECT
CONTENTS Page
A . 1 . 2 . 3 . 4 .
B . 1 . 2 . 3 . 4 . 5 .
C . 1 . 2 . 3 . 4 . 5 . 6 .
D . 1 . 2 . 3 . 4 . 5 . 6 . 7 .
STRATEGIC CONTEXT AND RATIONALE ............................................................... 1 Transport and the Country’s Growth Agenda ..................................................................... 1
Sector Issues ........................................................................................................................ 3 Rationale for Bank Involvement .......................................................................................... 7 Higher Level Objectives to which the Project Contributes ................................................. 8
PROJECT DESCRIPTION ............................................................................................... 9 Lending Instrument .............................................................................................................. 9
Project Components ............................................................................................................ -9 Lessons Learned and Reflected in the Project Design ...................................................... 13
Alternatives Considered and Reasons for Rejection ......................................................... 14
Project Development Objective (PDO) and Key Indicators., ............................................. -9
IMPLEMENTATION ...................................................................................................... 14 Partnership Arrangements ................................................................................................. 14
Institutional and Implementation Arrangements .............................................................. -15 Monitoring and Evaluation o f OutcomesResults ............................................................. 16
. Sustainability ..................................................................................................................... 16 Critical Risks and Possible Controversial Aspects ............................................................ 17
Credit Conditions and Covenants ..................................................................................... -19
APPRAISAL SUMMARY ............................................................................................... 20 Economic and Financial Analyses ..................................................................................... 20 Technical ........................................................................................................................... 21
Fiduciary ............................................................................................................................ 21 Social ....................... ...-. ..................................................................................................... 22 Environment ...................................................................................................................... 23
Safeguard policies .............................................................................................................. 24
Policy Exceptions and Readiness ...................................................................................... 24
Annex 1: Country and Sector Background ............................................................................... 25
Annex 2: Major Related Projects Financed by the Bank and/or other Agencies .................. 34
Annex 3: Results Framework and Monitoring ......................................................................... 35
Annex 4: Detailed Project Description ...................................................................................... 38
Annex 5: Project Cost .................................................................................................................. 43
Annex 6: Implementation Arrangements .................................................................................. 44
Annex 7: Financial Management and Disbursement Arrangements ..................................... 51
Annex 8: Procurement Arrangements ....................................................................................... 63
Annex 9: Economic Analysis ...................................................................................................... 77
Annex 10: Safeguard Policy Issues ............................................................................................. 86
Annex 11: Project Preparation and Supervision ...................................................................... 90
Annex 12: Documents in the Project File .................................................................................. 91
Annex 13: Statement of Loans and Credits ............................................................................... 92
Annex 14: Country at a Glance .................................................................................................. 94
Annex 15: Map ............................................................................................................................. 96 IBRD Map No . 36913
GHANA
TRANSPORT SECTOR PROJECT
PROJECT APPRAISAL DOCUMENT
AFRICA
AFTTR
Date: May 20,2009 Team Leader: Ajay Kumar
Country Director: Ishac Diwan Sector Director: Inger Andersen Sector Manager: C. Sanjivi Rajasingham
Sectors: Roads and highways (75%); General transportation sector (1 5%); Central government administration (1 0%) Themes: Rural services and infrastructure (P);Other urban development (P);Public expenditure, financial management and procurement (S) Environmental screening category: Full Assessment
Project ID: P102000
Lending Instrument: Specific Investment Loan
[ ]Loan [XI Credit [ 3 Grant [ 3 Guarantee [ ]Other:
For Loans/Credits/Others: Total Bank financing (US$m.): 225.00
Total: 130.00 95.00 225.00
Borrower: Republic o f Ghana, Ministry o f Finance and Economic Planning Accra Ghana
Responsible Agency: Ministry o f Roads and Highways (MRH) and Ministry o f Transport (MOT) Accra Ghana
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Project implementation period: Start: June 30,2009 Expected effectiveness date: December 3 1 , 2009 Expected closing date: June 30,20 15 Does the project depart f rom the CAS in content or other significant respects? Ref: PAD A.4.
End: December 3 1 , 20 14
[ ]Yes [XINO .P
Does the project require any exceptions from Bank policies? Re$ PAD D. 7.
[ ]Yes [XINO
[ ]Yes [ IN0 Have these been approved by Bank management? - _ _ _ I s approval for any pol icy exception sought f i om the Board? Does the project include any critical risks rated “substantial” or “high”? Re$ PAD C.5. Does the project meet the Regional criteria for readiness for implementation? Re$ PAD D. 7. Project development objective Re$ PAD B.3., Technical Annex 3 The project development objective (PDO) i s to improve mobil i ty o f goods and passengers through reduction in travel time and vehicle operating cost, and to improve road safety standards.
[ ]yes [ ~ I N o [ X ] Y e s [I N o
[XIYes [ ] N o
This objective will be achieved through strengthening the capacity oftransport institutions in planning, regulation, operations and maintenance, and through infrastructure investment. Project description [one-sentence summary of each component] Re$ PAD B.4., Technical Annex 4 The project components are:
Component A - Support to Ministry o f Roads and Highways (MRH): This is targeted at carrying out feasibility studies, developing a geographical system, strengthening management information system, and participation in training courses.
Component B - Support to Road Sector and Educational Entities: This component will support the activities o f four agencies: Driver and Vehicle Licensing Authority (DVLA), National Road Safety Commission (NRSC), Kwame Nkrumah University o f Science and Technology (KNUST), and Government Technical Training Center (GTTC).
Component C - Improvement o f Trunk Roads: This will be implemented by the Ghana Highway Authority (GHA) and consist o f rehabilitation o f a major trunk road from Ayamfuri-Asawinso, including provision o f technical assistance for the supervision o f the works and related environmental and social safeguards measures, capacity building and equipment
Component D - Improvement o f Urban Roads and infrastructure: This component will be implemented by Department o f Urban Roads (DUR) and consist o f rehabilitation o f arterial roads (Burma Camp Road and Giffard Road) and public transport infrastructure, including provision o f technical assistance for the supervision o f the works and related environmental and social safeguards measures, and capacity building. This component would also finance preparation o f a public transport management plan for central Accra.
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Component E - Improvement o f Feeder Roads: This component will be implemented by DFR working towards improving rural access through feeder roads rehabilitation and spot improvement program. This component will be implemented in two phases. During phase 1 , to be implemented in the first year, a total o f 48 feeder road sections will be rehabilitated (minor) and improved (spot improvement) in all regions o f Ghana. During phase 2, to be implemented in the second year, focused road improvements will be financed in selected regions to support commercial agriculture around growth poles.
Component F - Support to Ministry o f Transport (MOT) and Other Transport Sector Entities: The support being provided to the MOT will benefit: Ghana Airports Company Limited (GACL), Ghana Railway Development Authority (GRDA), Ghana Civil Aviation Authority (GCAA), Ghana Ports and Harbors Authority (GPHA), Regional Maritime University (RMU), Ghana Maritime Authority (GMA), and Volta Lake Transport Company (VLTC). The support i s targeted at conducting feasibility studies, training.
Component G - Project Management: Provision o f technical assistance, vehicles, equipment and other operational support to the Implementing Agencies to carry out coordination, administration, monitoring, evaluation and audit o f the Project.
Which safeguard policies are triggered, if any? Ref: PAD D.6., TechnicalAnnex 10 The project has been assigned the Environmental Category A. The safeguards policies that have been triggered are OPBP 4.01 (Environmental Assessment), OP 4.1 1 (Physical Cultural Resources), and OPBP 4.12 (Involuntary Resettlement).
The civil works to be carried out in this project include the upgrading and rehabilitation o f existing roads, which wi l l be carried out in accordance with the Environmental Management Plans (EMPs) and Resettlement Action Plans (RAPS) prepared by Government o f Ghana (GOG) for this purpose.
In addition, there are minor civil works (construction o f teaching facilities, laboratory, hostel, feeder road improvements, workshops and offices) which will be carried out in line with the Environmental and Social Management Framework (ESMF) and Resettlement Policy Framework (RPF). The planned civil works will not have irreversible negative impacts during project implementation. This i s especially the case for the road upgrading works, which will not require road re-alignments and will require only, limited land acquisition. The potential adverse environmental and social impacts identified will be limited and site specific; they will be mitigated in accordance with the Bank's safeguard policies. Significant, non-standard conditions, if any, for: Ref: PAD C.5. Board presentation: None. Loadcredit effectiveness:
(i) The Recipient has adopted the Project Implementation Manual, in form and substance satisfactory to the Association; and
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(ii) The Implementation Agreements have been duly executed by the Implementing Agencies (IAs).
Covenants applicable to project implementation:
0 Standard financial management, procurement and implementation covenants as tailored to the project; and
Project-specific covenants relating to: (i) maintenance o f the Project Steering Committee (PSC), Project Implementation Team (PIT) and IAs; (ii) execution and compliance with an implementation agreement among the IAs and with the project implementation manual; (iii) preparation o f annual work plans and budgets for approval by the Bank; (iv) implementation o f the project in accordance with the ESMF/RPF/EMPs/RAPs; and (v) key outcome indicators.
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A. STRATEGIC CONTEXT AND RATIONALE
1. Transport and the Country’s Growth Agenda
1. Ghana’s vision o f achieving middle-income country (MIC) status by 2015 within a decentralized, democratic environment means doubling the size o f Ghana’s economy within a decade. This requires that gross domestic product grows by six to eight percent per annum and per capita income rises from around US$400 to US$l,OOO per annum. The government’s policy objective i s to strengthen the provision o f infrastructure services and improve the business environment to sustain broad-based growth.
2. The importance o f transport infiastructure was highlighted in Ghana’s Growth and Poverty Reduction Strategy (GPRS 11) as an enabler for economic growth and poverty reduction. The transport sector i s critical in providing access to jobs and markets, and plays a strategic role in the economy o f Ghana, accounting for about five percent o f gross domestic product and generating a significant share o f government revenues. I t i s increasingly recognized that the transport sector serves and facilitates other sectors. Available international evidence suggests a strong positive correlation between road investment, growth, and poverty reduction. An assessment o f the impact o f investments in road infrastructure in Ghana’ conducted over the period 2005-2008 reveals the following:
0 improved roads result in (a) a 20 percent increase in the number o f trips to hospitals; (b) a 23 percent increase in the price o f maize received by farmers; (c) a 65 percent lower cost o f traveling to market; and (d) a 41 percent lower cost o f traveling to welfare facilities; a direct positive correlation exists between the incidence o f poverty and road condition; and improvements in regional corridors reduce delays in cross-border movement o f goods, people and services, waiting time at ports, and promote economic activities.
0
3. The country has a fairly developed transportation system. The road network as o f December 2008 consists o f 13,367 km o f trunk roads, 42,093 km o f feeder roads, and 12,450 km o f urban roads. Roads are the predominant mode o f transportation, currently accounting for 94 percent o f freight and 97 percent o f all traffic movements in the country. The transport o f bulk commodities i s suited to transport by rail from existing central collection centers and mining areas to the ports. The 947 km railway network length has limited coverage (Accra-Kumasi- Takoradi) and serves only the southern part o f the country, excluding the largest port o f Tema.
4. Ghana’s two ports handle seven million tons o f import and export traffic annually. This figure can increase over the coming years if Ghana i s able to capture a larger share o f shipments to and from neighboring landlocked countries, particularly Mali, Burkina Faso, and Niger, which can use competing corridors through C6te d’Ivoire, Senegal, Benin, and Togo. Ghana’s inland water transportation i s under-utilized. Most bulk hauling o f petroleum products i s done by roads but a small percentage i s transported on the Volta Lake.
“Baseline Studies o f the RSDP”, Ministry o f Roads and Highways (2006), Ghana 1
5. Ghana has implemented a Road Sector Development Program (RSDP) starting in 2001 with a total investment cost o f US$l.2 billion, o f which about 75 percent was contributed by the Development Partners (DPs)~, and the balance funded by the Government o f Ghana (GOG). The Bank supported the RSDP with a credit o f US$220 million which closed in June 2008. Since the initiation o f the RSDP strategy in 1996, considerable progress has been made in expanding the role o f the private sector, strengthening the capacity in planning and management, and improving financing for road maintenance.
Box 1: Achievements of RSDP Improvement in the quality of road network from 29 percent good, 27 percent fair, and 44 percent poor (in 2002) to 39 percent, 29 percent, and 32 percent, respectively (in 2007), with a recorded 40 percent increase in road length; Improvement in the operations of an independent road fund, supported by a dedicated fuel levy, which increased fiom GH$O.O23/liter (US2.5 cents) to GH$O.O60/liter (US6 cents) over the project period, as agreed in the Letter o f Sector Policy; Increase in maintainable network of feeder roads from 11,500 km to 30,000 km; Decline in accident fatality rate from 27 per 10,000 vehicles to 22; and Completion of a number o f policy studies and action plans to improve sector strategy, financing, management, delivery, and private sector participation.
0
0
0
6. While the RSDP has provided “an integrated ap roach to road maintenance, construction and management” by the mid-term review (MTR) 2005 , the program i s focused on the road sub- sector. Under the RSDP, sector priorities were decided by short term imperatives without an integrated and coordinated approach to multi-modal planning. There are very few examples o f integrated planning throughout the sector and the government’s long standing objective “to foster effective modal integration and economic assignment o f traffic to modes through the market mechanism in order to minimize over-all transport costs to users” (2001)4 remains unfulfilled.
P
7. With a national vision o f attaining M I C status by 2015, democratic, multi-stakeholder engagement in policy formulation and implementation, increasing reliance on market-based regulation and enhanced human resource capacity, it i s noticeable that Ghana’s governance framework i s undergoing a significant change. Yet the laws, regulations, institutions, decision making, and financing mechanisms affecting the transport sector remain uncoordinated often creating significant barriers to performance-improvement and restricting opportunities for increased sub-regional trade as well as the much sought-after inter-sectoral and inter-modal coordination. With the road sub-sector receiving approximately 100 times the budget received by the rail, harbors, and ports (as evidenced by the figures in the annual budget statement), there i s
The transport sector DPs in Ghana include: African Development Bank (AfDB), French Development Agency (ADF), Arab Bank for Economic Development in Africa (BADEA), Danish International Development Agency (DANIDA), U.K. Department for International Development (Dff D), Japan International Cooperation Agency (JICA), Kreditanstalt fur Wiederauflau (KfW), Millennium Challenge Corporation (MCC), Netherlands, Saudi Fund, United States Agency for International Development (USAID), European Commission (EC), and the World Bank
Mid-Term Review (2005) Road Sector Development Program m.ghana.gov. gh 4
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always a concern that this funding imbalance may lead to uncoordinated inter-modal planning and dominance o f one mode over others.
8. I t i s recognized that Ghana’s policy framework i s changing and this change impacts on the governance and institutional framework for the transport sector. In practice it means that the way decisions and priorities are made, and the way performance i s measured and reported, i s changing. As a result, new institutional arrangements are required to provide conditions in which policy can be properly formulated and coordinated and in which the new governance requirements can be satisfied.
9. Currently, there are two ministries responsible for the transport sector: (a) Ministry o f Roads and Highways (MRH), which i s responsible primarily for roads; and (b) Ministry o f Transport (MOT)’ responsible for airports, railways, and harbors. The critical issue i s how the institutional and organizational arrangements could be improved to increase the overall effectiveness and efficiency o f transport infrastructure provision and maintenance within a national policy and institutional framework for the sector.
2. Sector Issues
10. The key policy and institutional issues in the transport sector are:
0 Need for coordination o f policy formulation and planning. Inter-sectoral co- ordination among all ministries involved in the transport sector does not take place with sufficient regularity;
0 Need to clarify mandates among existing agencies with a focus on possibly creating: (a) a National Roads Authority (NRA) to act as asset manager for Ghana’s national road network to include the current role o f the road fund; (b) trunk roads agency to be contracted to the NRA to provide network management services for the defined trunk roads in Ghana; and (c) local roads agency to be contracted to the NRA to provide network management services for the defined local roads in Ghana;
Need for a prouer regulatory environment in the rail sector with the focus on establishing a strong Ghana Railway Development Authority (GRDA) (now that the Railway Act has been passed);
0 Strengthen management and financing o f road maintenance with a clear focus on striking a better balance between maintenance and expansiordrehabilitation;
Need to Implement the Axle Load Control Policy Action Plan, which includes the adoption o f the Road Traffic Regulation necessary to strengthen controls; and
Promote private sector involvement with a focus on: a) developing a conceptual framework to strengthen private sector participation; b) setting up a specialised unit
The new government has realigned some ministries to reduce their numbers ftom 27 to 23. The ministries in the transport sector have been reduced from three to two-with a Ministry o f Roads and Highways (the earlier Ministry o f Transportation) and a Ministry o f Transport (including rail, ports, and harbors, combining earlier ministries o f aviation and rai l and harbor).
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within a Transport Sector Ministry to drive the reform process and carry out specialist tasks; and c) strengthening domestic construction industry capacity in planning and delivering commercially successful operations.
11. Roads: The specific issues affecting the road sub-sector are as follows: (a) a weak connection between the overall government strategic objectives for economic growth and actions on the ground (as measured by investment prioritization, network expansion, etc.); (b) inadequate attention to maintenance and lack o f balance between “maintenance” and “development”; (c) weak management capacity in planning and monitoring o f project works; (d) over-loading o f commercial vehicles, typically o f the order o f 10- 1 5 percent, leading to accelerated deterioration o f roads; (e) issues related to local construction capacity, including capacity o f the contractor (management, manpower, equipment and access to credit), employer (contractor classification, implementation, supervision), engineer and the markethusiness environment; and ( f ) a large proportion (over 45 percent) o f the rural population remains inaccessible (lives beyond 2 km o f al l season roads).
12. The MRH would also l ike to increase the efficiency and effectiveness with which the management and maintenance o f the road network is carried out. Currently, public works contracts are numerous and are characterized by delays in payments and weak project management procedures. This is typically caused by short duration o f contracts, weak link between performance and payment, inability to bundle related services (particularly construction and maintenance), ineffective payment procedures, and weak monitoring. The ministry would l ike to examine new concepts and instruments for the management and maintenance o f roads.
13. Railways: About 250 km o f the current rai l network o f 947 km carries some traffic, o f which 93 percent is mine-related on a 63 km stretch. The Bank’s experience to-date with railway privatization in sub-Saharan Afr ica shows that while historically railways have played a crucial role in the economic integration and development o f Afr ican economies, the continuous expansion o f the road network since about 100 years ago means that today, railways’ competitive position has been reduced to a few niche markets such as dedicated lines for mineral exports that enjoy extremely high volumes (Le., several mi l l ion tons per km o f main trunk line) or to long distance traffic (over 500 km) where it can enjoy a relative competitive advantage over road traffic for some high value product such as o i l and containers. Such advantage, however, is predicated upon the ability o f the railway to price i t s services below that o f trucks (on average at least 50 percent to 60 percent less) and usually implies that long te rm financial sustainability o f ra i l operators in Afr ica relies on the fact that the government, not private operators, finance track rehabilitation as overall market demand is not large enough to generate revenue levels large enough to make railway operations financially self-sufficient.
14. Aviation: The key issue facing the aviation sub-sector relates to promoting private sector involvement in the investment and management o f aviation infrastructure and equipment with the objective to improve security and safety oversight.
15. Need for Sector Policy Formulation and Coordination. There i s a need for effective pol icy formulation and coordination o f the transport sector within the framework o f a National
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Transport Policy (NTP) and the proposed Integrated Transport Plan (ITP)6. This i s necessary to ensure proper attention to strategic, sub-regional, national (growth and poverty reduction), inter- sectoral, inter-modal and urban issues including creating an enabling environment for their effective and efficient implementation by government, civil society and the private sector. The focus o f the coordinated sector approach i s expected to be on: (a) policy formulation, planning and coordination, with a clear definition o f the roles and functions o f the transport ministries; (b) financial accountability to enable a sustainable and sound financial basis for the provision and maintenance o f road infrastructure; effective use o f resources; provision o f an acceptable and transparent structure for the management o f funds and strengthening financial controls; (c) decentralization, to ensure participation o f the metropolitan, municipal, and district assembly levels in the planning, management, financing and monitoring o f road infrastructure; (d) commercial operation, with appropriate costing and management requirements; (e) human resource principle, with a need to motivate staff, and provide encouragement to develop and reward for achieving good results based on clearly defined performance targets; (f) operational and planning principles, with long-term transport planning framework that prioritizes activities, matches operational needs with funding, coordinates inputs o f various agenciedauthorities, separates service procurement from service providers, with clearly defined responsibilities, independent technical and financial auditing, coordinated planning, management information system, and financial management system in place; (g) effective monitoring, focused on undertaking regular progress assessments against uniform performance measurements to ensure relevant and reliable management information as the basis for corrective action; and (h) empowerment and participation, entitling stakeholders to participate in road financing and management decision making, service delivery and monitoring by ensuring access to decision making and consultation on key decisions.
16. delivery and management o f the transport sector, in particular:
Government Strategy. The government has undertaken a number o f steps to strengthen
The NTP has been approved by the Cabinet7; Developed a draft sector institutional restructuring approach, with a view to harmonize planning, development and monitoring approaches; Developed draft Regulations to Road Traffic Act, with a view o f enforcement o f axle load control and implementation o f axle load policy and action plan; Increased road maintenance funding and improved financial. management o f the sector; Developed an approach to strengthen private sector participation in the sector through public private partnerships (PPPs) and support to local construction industry; and Developed and successfully implemented the f irst phase o f their National Road Safety Strategy (NRSS I2001 - 2005).
European Commission (EC) i s supporting prepafation of a sector ITP to develop a range of decision making tools to formulate more effective investment plans and strategy. The ITP, when finalized, i s supposed to take over fiom the Transport Sector Project (TSP). ’ This NTP has also undergone a Strategic Environment Assessment as required by the Second Growth Poverty Reduction Strategy (GPRS 11). The term “Environment” as spelled out in the Strategic Environmental Assessment (SEA) of the Growth Poverty Reduction Strategy (GPRS) “includes natural resources, social, cultural, and economic conditions and the institutional environment in which decisions are made”.
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17. The NTP heralds a change o f approach, setting out a blueprint for the sustainable development o f the country’s transport system within the context o f a coordinated strategy for growth and poverty reduction and working towards the goal o f M I C status by 2015. The objectives o f the NTP are to: (a) establish Ghana as a transportation hub for the West Africa sub- region; (b) create a sustainable, affordable, reliable, effective, and efficient transport system that meets user needs; (c) integrate land-use, transport planning, development planning, and service provision; (d) create a vibrant investment and performance-based management environment that maximizes benefits for public and private sector investors; (e) develop and implement comprehensive and integrated policy, governance, and institutional frameworks; and (9 develop adequate human resources and apply new technology.
18. The NTP establishes goals for which the transport sector, as a whole, wi l l strive to achieve over the next 5-10 years. Work has already started on the development o f the ITP which will set out measures required by the sector to achieve NTP goals. On completion, the ITP will become the long-term policy implementation document for the development o f the country’s transport system.
19. As part o f the government’s Public Sector Reform Agenda, wide-ranging improvements have been identified. Progress i s being made in the aviation, railways and maritime sub-sectors, where a common institutional framework i s already emerging based upon the creation o f organizations mandated to carry out separated functions. For example, Ghana Maritime Authority (GMA) has been created as the regulatory body for maritime and inland water services, Ghana Airports Company Limited (GACL) has been created to manage airport assets and the role o f Ghana Civil Aviation Authority (GCAA) has been adapted to focus on sector regulation.
20. As follow-on to the RSDP, which closed in June 2008, the government has prepared a Transport Sector Development Program (TSDP) to guide investments in the sector during the period 2008-2012. The TSDP represents the evolution o f short and medium-term transport planning from a roads perspective towards a comprehensive transport perspective, working towards a full ITP that operationalizes the strategic objectives set out in the formative NTP. The estimated cost o f the TSDP i s US$4.8 billion, o f which US$255 million i s for the aviation sub- sector, US$1.4 billion for the maritime and railways sub-sector, and US$3.1 billion for roads sub-sector. The government has secured funding for US$2.4 billion and i s looking at options to finance the funding gap.
21, The MRH has completed an institutional study with the objective to:
Focus the Ministry’s activities on policy formulation and coordination; Create an NRA to act as asset manager for Ghana’s national road network to include the current role o f the Road Fund. The NRA would be responsible for administering road-sector finances, setting development and performance standards and planning for the long-term development and maintenance o f Ghana’s road assets to meet strategic objectives set out in the NTP; and
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Create a trunk roads and local roads agency to be contracted to the NRA to provide network management services for the defined trunk roads and local roads, respectively. These agencies will receive their funding from the NRA on the basis o f annually reviewed performance agreements. Their core functions are to develop five year strategic plans and annual business plans for their road networks including annual programs o f works and procurement o f required services.
22. The study recommendations support the decentralized management o f feeder and urban roads by creating a roads agency operating in a zonal/regional/area office arrangement to manage local roads through a service level agreement with individual Metropolitan, Municipal, and District Assemblies (MMDAs).
23. The MRH has also developed a conceptual framework for Private Sector Participation (PSP) focusing on: (a) improving the legal framework; (b) increasing access to finance; (c) identifying suitable projects; (d) improving the structure o f contracts; and (e) strengthening institutions. With the objective o f further developing the PSP framework, the MRH proposes to set up a specialized PSP unit, with a core staff to focus on: (a) driving the reform process and lobbying at a high level in government for the creation o f an enabling environment; (b) acting as a “one stop shop” for private investors; (c) liaising with other departments to move PSP projects forward, and keep investors informed o f progress; (d) carrying out specialist tasks, such as drafting o f concession agreements and monitoring o f operator performance; and (e) formulating a communications strategy to inform the public about PSPs.
24. The MRH is keenly aware that road safety issues are best tackled with a multi-sectoral approach, encompassing health, education, security and transport. Together with the National Road Safety Commission (NRSC), the ministry has launched its second five year NRSS I1 (2006-20 10). This strategy recognizes key challenges they faced in reducing fatalities, which include amongst others, inadequate enforcement and weak stakeholder coordination. The new strategy seeks to address these areas. The focal areas o f the strategy are: (a) the road user, (b) pedestrian facilities, (c) vehicles, (d) enforcement, and (e) emergency service and care. The ministry is seeking support f rom the Global Road Safety Facility in conducting a country capacity review, assisting in the creation o f a more multi-sectoral approach to the delivery o f positive road safety outcomes.
3. Rationale for Bank Involvement
25. The Bank has financed a number o f transport operations in Ghana over the past three decades which has provided it an opportunity to establish a substantive dialogue with GOG on major issues in the sector. The Bank i s a major development partner and has played a key role in improving, coordinating, and promoting a harmonized approach in the sector. The Bank has also supported building a knowledge base through a number o f studies financed by Public-Private Infrastructure Advisory Facility, the RSDP and the Ghana Urban Transport Project approved in FY07. The proposed project provides an opportunity to implement the recommendations emerging from the studies.
7
26. The Bank’s involvement would also support: (a) the dialogue on the need for a comprehensive approach in considering multi-sectoral issues (impact on health, education, social services, agriculture) and measuring the impact on the Millennium Development Goals; (b) reinforcing the need for integrated policy, governance and institutional frameworks to ensure that appropriate institutional and regulatory measures are established for effective policy, planning and delivery o f transport services; (c) assisting the GOG in implementing the recommendations o f institutional restructuring study and other strategies through both policy dialogue and analysis, investments and direct analytical support to GOG during implementation; and (d) utilizing technical expertise for policy analyses and project formulation, coordinating and leveraging financing from other development partners (aid harmonization); and e) utilizing the experience gained from the Sub-Saharan Africa Transport Policy Program and other regional initiatives to support the reform agenda.
4. Higher Level Objectives to which the Project Contributes
27. The Africa Action Plan spells out the need to close the continent’s infrastructure gap in order to stimulate growth, reduce poverty, and ultimately achieve the Millennium Development Goals. To accomplish the seven percent growth rate needed to halve poverty, Africa will have to invest about five percent o f gross domestic product in infrastructure investment and four percent to cover operation and maintenance, an amount equivalent to around US$20 billion per year, which i s twice as much as was invested in the past years. The proposed investments in this project would help leverage additional resources and contribute to bridging the infrastructure gap.
28. The Country Assistance Strategy identified Ghana as one o f the few countries in sub- Saharan Africa with a chance o f meeting the Millennium Development Goals. The strategy for meeting the Millennium Development Goals i s rooted in the Strategic Framework for IDA’S assistance in Africa and rests on three pillars: (a) sustainable growth and job creation; (b) human development and service provision; and (c) improved governance and empowerment. The project supports all three objectives by: (a) increasing Ghana’s competitiveness in foreign trade by reducing internal transport costs and by promoting linkages in domestic markets which are crucial factors for rapid and sustained growth; (b) improving governance through clarifying roles and responsibilities in transport sector and encouraging wider and more meaningful participation o f stakeholders in the decision making process; and (c) enabling and supporting the decentralized planning, management, finance and regulation o f transport infrastructure and services and creating appropriate local institutions and capacity to fulfill responsibilities.
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B. PROJECT DESCRIPTION
1. Lending Instrument
29. A Specific Investment Loan (SIL) instrument i s proposed for the financing o f this project, based o n discussions with government. The roads sub-sector remains the primary beneficiary o f the proposed financing, though the project would support developing a strategic context for a coordinated sector strategy and preparing building blocks for other sub-sectors (aviation, maritime, rail) by financing capacity building activities, feasibility studies and a few targeted investments.
2. Project Development Objective (PDO) and Key Indicators
30. The PDO is to improve mobil i ty o f goods and passengers through reduction in travel time and vehicle operating cost, and improvement in road safety standards. This objective will be achieved through strengthening the capacity o f transport institutions in planning, regulation, operations and maintenance, and through infrastructure investments. The achievement o f the PDO will be monitored using the fol lowing performance indicators to be achieved by the end o f project:
(a) Average travel time reduced by at least 20 percent on project-financed roads; (b) Average vehicle operating cost (in real terms) reduced by at least 10 percent on
project-financed roads; (c) Fatality rate reduced from 22 per 10,000 vehicles to 19 per 10,000 vehicles; (d) Rural Accessibility Index (MI8) increased from 53 percent to 57 percent; and (e) Trunk road network in good and fair condition improved from 83 percent to 88
percent, for urban roads from 36 percent to 50 percent, and for feeder roads from 72 percent to 85 percent.
31. The project would also support a number o f intermediate outcomes and outputs, which are listed in Annex 3. In the aviation, maritime, and railways sub-sectors, the project will finance institutional strengthening and feasibility studies in support o f the GOG’s transport sector program. The intermediate outcomes and output indicators are also shown in Annex 3.
3. Project Components
32. The total cost o f the proposed project i s estimated at US$225.0 mi l l ion which will be financed by IDA at 100 percent. The MRH and M O T will participate in the project. In addition to the ministries, the various agencies and entities which will benefit from the IDA credit are:
Road sub-sector: Driver and Vehicle Licensing Authority (DVLA), National Road Safety Commission (NRSC), Kwame Nkrumah University o f Science and Technology (KNUST), Government Technical Training Center (GTTC), Ghana
Rural Accessibility Index measures the proportion o f population within 2 km o f an all weather road. 9
Highway Authority (GHA), Department o f Urban Roads (DUR), and Department o f Feeder Roads (DFR); and
Aviation, Maritime and Railway sub-sector: Ghana C iv i l Aviat ion Authority (GCAA), Ghana Airports Company Limited (GACL), Ghana Railway Development Authority (GRDA), Ghana Ports and Harbors Authority (GPHA), Regional Maritime University (MU), Ghana Maritime Authority (GMA), and Volta Lake Transport Company (VLTC).
33. A substantial portion o f the project i s devoted to institution and capacity building, preparation o f feasibility studies, advisory support, and monitoring and supervision. These activities will be managed and coordinated by the two ministries. The project has the following seven components.
34. Component A - Support to MRH (US$4.2 million): This is targeted at: (a) carrying out selected feasibility studies related to its investment program; (b) integrating trunk, urban, and feeder road networks and associated service activities into a geographical information system, strengthening road operating and safety standards and axle load control, strengthening the management o f road financing, and capacity building including carrying out other road sector pol icy and institutional reforms; (c) strengthening its management information system and prepare a human resource development strategy; and (d) participating in national and international training courses relevant to its functions.
35. This component will support the fol lowing activities:
Component B - Support to Road Sector and Educational Entities (UM6.5 million):
Driver and Vehicle Licensing Authority (DVLA) includes actions to: (i) develop improved driver and vehicle licensing methods and standardize licensing procedures, permits and collection o f associated revenue; (ii), develop improved procedures for enforcement o f driver and vehicle licensing regulations; and (iii) develop improved ground facilities for driver testing;
National Road Safety Commission (NRSC) includes actions to: (i) obtain road safety equipment; (ii) produce and distribute handbills, information and publicity material to raise awareness o f road safety; (iii) provide facilities and equipment for emergency response services; and (iv) organize related road safety and emergency response training activities for selected NRSC personnel;
Kwame Nknunah University o f Science and Technology (KNUST) includes actions to: (i) construct and equip teaching and laboratory facilities; and (ii) develop and deliver post-graduate training courses on the efficient and effective management o f the transport sector; and
Government Technical Training Centre (GTTC) includes: (i) develop and expand i t s facilities for artisans’ training in the road sector, including the construction and furnishing o f lecture halls, lodging and workshop facilities; and (ii) set up, in
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collaboration with NRSC and DVLA a pilot driving academy; and (iii) educate mechanics on vehicle maintenance standards.
36. Component C: Improvement of Trunk Roads (US64.0 million): This will be implemented by the GHA and consist o f rehabilitation o f a major trunk road from Ayamfuri- Asawinso to establish a South-North transport corridor in the west o f Ghana, linking the timber and mineral rich areas and neighboring countries located west and north o f Ghana, to the deep water port o f Takoradi. Support to GHA will also include supervision o f construction, environmental and social safeguards, environmental and social safeguard training, and to strengthen the technical capacity o f GHA for improvement o f trunk roads and the provision o f axle load equipment.
37. Component D: Improvement of Urban Roads and Infrastructure (IDA: US$78.0 million): This component will be implemented by DUR and consist o f rehabilitation o f arterial roads and public transport infrastructure as follows:
0
0 Rehabilitation o f Giffard Road; 0
Rehabilitation o f the Burma Camp Road;
Financing urban transport infrastructure in Accra (including investments along tributaries to the Bus Rapid Transport corridor under implementation in the urban transport project, bus stations, terminals, depots, and studies; and Financing the preparation o f a public transport management plan for central Accra.
38. The component would also cover cost o f consultancy for construction supervision, supervision o f environmental and social safeguards and to strengthen the technical capacity o f DUR for improvement o f the urban road network.
39. Component E - Improvement of Feeder Roads (UW50.5 million): The roads to be financed in the first year are identified based on criteria outlined in paragraph 69. A total o f 48 feeder road sections will be improved in all regions o f Ghana at a cost o f about US$20.0 million.
40. The roads to be financed as part o f the second year program, with an additional US$27.5 million, would be identified during the f i rst year o f implementation. The investments will be focused in selected regions to support commercial agriculture around growth poles, in collaboration with the Ministry o f Agriculture. Support to DFR will also include US$2.5 million for consultancy for supervision o f construction (including supervision o f environmental and social safeguards), and US$0.5 million to strengthen the technical capacity o f DFR for improvement o f the feeder road network.
41. million): This component would finance:
Component F - Support to MOT and Other Transport Sector Entities (US13.5
Support to M O T to: (a) make the Ghana Railway Development Authority (GRDA) operational; (b) carry out studies on the development o f public-private partnerships in the sector; and (c) build i ts capacity in transport planning, procurement, financial, project, and safeguard management;
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Support to GACL to: (a) carry out detailed design, environmental and social studies for the adaptation o f Takoradi airport for civilian purposes; and (b) prepare a master plan for development o f regional airports;
G
Support to GCAA to develop regulations for the aviation industry and carry out studies on aviation sector development;
Project Management 8.3 TOTAL 225.0*
Support to GPHA to carry out a feasibility study for the dualization o f the Meridian Road in Tema;
Support to GMA to carry out a feasibility study for the improvement o f transportation on Volta Lake;
Support to VLTC to carry out feasibility studies for the development o f landing stages and reception facilities along the Volta Lake; and
Support to RMU to improve i ts training capacity to provide maritime training services for the West Africa Region.
42. The Takoradi Airport i s currently a military airport and controlled by the Ministry o f Defense. The airport i s to be developed to cater for civilian use. The military and civilian facilities will exist separately but in close proximity to each other, similar to the arrangement between the Ghana Air Force and GCAA at the Kokota International Airport (KIA) in Accra. The government’s objective i s to have the military cede air traffic control to the GCAA, who will provide service to the military and civilian operations alike.
43. Component G - Project Management (US$8.3 million): This component would include support for provision o f technical assistance, vehicles, equipment and other operational support to the Implementing Agencies (IAs) to carry out coordination, administration, monitoring, evaluation and audit o f the project.
Table 1: Project Costs
4. Lessons Learned and Reflected in the Project Design
44. The advantages o f a participatory design process: The implementation o f the RSDP has provided an excellent opportunity to establish a substantive dialogue with the GOG on major issues in the transport sector. One o f the key thrusts during the program was to be al l inclusive and to provide a platform for exchange o f information among al l stakeholders. A transport sector pol icy was prepared with the support o f a l l transport ministries and involvement o f region based agencies, private, and public sector. The process was slow, taking over two years, but the policy has ownership o f a l l concerned and has been more effective than a less inclusive process. The proposed Transport Sector Project (TSP) builds on the participatory design process and reflects a broad acceptance o f the strategy and investment priorities.
45. The need for donor coordination and consultation: All Development Partners (DPs) active in the transport sector o f Ghana including the African Development Bank (AfDB), French Development Agency (ADF), Arab Bank for Economic Development in Africa (BADEA), Danish International Development Agency (DANIDA), U.K. Department for International Development (Dfl D), Japan International Cooperation Agency (JICA), Kreditanstalt far Wiederaujbau (KfW), Millennium Challenge Corporation (MCC), Netherlands, Saudi Fund, United States Agency for International Development (USAID), European Commission (EC), and the World Bank) have been providing support through commitments to RSDP, under coordination and full ownership o f government. The practice o f regular consultations (through regular jo int missions, monthly and annual meetings), has demonstrated the advantage o f regular contact between al l actors and interested parties. This coordination will continue during the implementation o f TSP.
46. The need for comprehensive sector management support: One o f the lessons emerging from implementation o f RSDP is that meaningful sector-wide management i s difficult without adequate coordination and financial discipline. There i s a need to coordinate activities o f the two transport ministries in support o f a common agenda and within an agreed financial envelope. The TSP has been prepared in a common framework and is expected to guide decision making in the future. It is also proposed to set up a Project Steering Committee (PSC) as an inter-ministerial oversight body, composed o f representatives from the two transport ministries and the Ministry o f Finance and Economic Planning (MOFEP) to develop and implement an integrated approach to achieve the objectives o f the TSDP.
47. The importance of accompanying stable maintenance funding with better programming: Ghana set up a road fund in 1998 and has succeeded in successive increases in the fuel levy as agreed in the letter o f sector policy. The total contribution to the road fund in 2007 was about US$130 million, o f which more than 90 percent was from fuel levy. However, a secure and dedicated funding for road maintenance is not by itself a sufficient condition that maintenance needs are met and addressed in a prioritized manner. I t i s equally important to develop a clear work program and planning and management capacity to ensure that maintenance needs are addressed as a f i rs t priority and users get value for money. As part o f the MRH capacity building component, the planning and management capacity o f the road fund will be strengthened.
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48. A need to provide a common basis for evaluating alternative investments: Experience world-wide suggests that it is important to provide a level playing field for effective multi-modal competition and regulation. This would require that different alternatives are evaluated using a common basis before making specific investment decisions. It i s expected that the ITP under preparation, would develop a prioritized investment program for al l transport modes.
49. A good project monitoring system i s necessary for effective management: A detailed monitoring and evaluation component, including collection o f al l baseline data, has been designed and built into the project. The performance indicators will be monitored annually with extensive consultations and presented during the annual DPs’ meeting.
5. Alternatives Considered and Reasons for Rejection
50. . The Bank has been involved in the road sector in Ghana for a long time. While substantial progress has been made and both the quantity and quality o f roads in Ghana have improved, donor assistance in the road sector is l ikely to be required for quite some time. During the preparation o f this project, therefore, consideration was given to whether an Adaptable Program Loan (APL) might be more appropriate. The GOG has expressed a distinct preference for a Specific Investment Loan due to some difficult experience in the past with an Adaptable Program Loan in another sector. It was also felt appropriate to develop a long-term investment support program after completion and adoption o f the ongoing ITP.
5 1. A large share o f the proposed financing will be committed to the roads sub-sector. The project is also financing capacity building and technical assistance o f MOT, and multiple other agencies and entities in rail, ports and harbors sub-sectors, which adds to the institutional complexity o f the project. However, there i s clearly a need to coordinate strategic framework o f different transport sub-sectors to develop harmonized laws and institutional framework and support investment planning decisions. The government has prepared the N T P and TSDP through a highly participatory and consultative process. This is Ghana’s first comprehensive N T P and, as such, marks a new era in establishing strategic objectives and performance standards for transport infrastructure and services. It i s critical to continue this collaboration and the proposed project involves working with the different ministries in defining priorities and strategies that serve the national development goals.
C. IMPLEMENTATION
1. Partnership Arrangements
52. Although the project is not being co-financed joint ly or in parallel with any other development partners, it is part o f a broad program prepared in close coordination with al l o f the other active development partners in the Ghana transport sector. It i s expected that each o f the development partners will finance components o f the government’s five-year program. Specifically, the E C will provide about US$7.5 mi l l ion to the railways and harbor, US$8.0
14
million to aviation and US$95 million to GHA. The modalities o f how these funds will be provided are under discussion between EC and GOG.
2. Institutional and Implementation Arrangements
53. The project will be implemented by MRH, which will have the overall responsibility for i t s coordination and management. Implementation will be carried out on the basis o f an Annual Work Plan and Budget prepared by the MRH, with inputs from the IAs and Beneficiary Agencies (BAS). The IAs are: MRH including Department o f Urban Roads (DUR) and Department o f Feeder Roads (DFR), Ghana Highway Authorities (GHA), MOT, Ghana Airports Company Limited (GACL), Ghana Civil Aviation Authority (GCAA), Ghana Ports and Harbors Authority (GPHA); the BAS are: Driver and Vehicle Licensing Authority (DVLA), Kwame Nkrumah University o f Science and Technology (KNUST), Government Technical Training Center (GTTC), National Road Safety Commission (NRSC), Regional Maritime University (RMU), Ghana Maritime Authority (GMA), Volta Lake Transport Company (VLTC). The IAs will be involved in procurement o f goods, works, and services, contract management and financial management. In contrast, the BAS will be responsible for providing technical inputs for the carrying out by the IAs o f their respective components. The details on fiduciary responsibility and process flows under the project are provided in Table 1 (Annex 6).
54. All components will be managed in line with Bank fiduciary and safeguard . ,
requirements. In those areas where expertise i s lacking or not fully developed, short-term consulting specialists (management, engineering, procurement, financial management) will be employed to enhance performance and project implementation. The short-term specialists would be financed as part o f the capacity building component o f MRH and MOT.
55. Implementation will be carried out on the basis o f an Annual Work Plan and Budget prepared by the MRH, with inputs from participating MDAs and entities. A Project Implementation Manual (PIM) will be prepared by GOG for: (a) institutional coordination and day-to-day execution o f the project; (b) disbursement and financial management; (c) procurement; (d) environmental and social guidelines; (e) monitoring, evaluation, reporting and communication; and (9 such other administrative, financial, technical and organizational arrangements and procedures as may be required for the project.
56. and detailed as part o f the PIM:
To facilitate project implementation, the following Committees and Groups will be set up
(a) A PSC as an inter-ministerial oversight body; (b) A PIT for coordinating implementation o f project activities and reporting; (c) A Finance Management Team (FMT), as part o f the PIT, for the overall financial
management and reporting; and (d) Procurement Team (PT), as part o f the PIT, with direct responsibility for
procurement activities and to provide quality control.
57. The following reports will be prepared and consolidated by the PIT on a quarterly basis: (a) Quarterly Financial Reports will consist o f sources o f funds, statement o f uses o f funds by
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project activity, project cash withdrawals, special account reconciliation statement and a six- month project cash forecast; (b) Quarterly Project Progress Reports will consist o f an output monitoring report on contract management, project management and monitoring; and (c) Quarterly Procurement Management Reports will consist o f procurement process monitoring for goods, works and consultants’ services, and contract expenditure reports for goods, works and consultants’ services.
58. Quarterly progress reports will summarize activities o f work progress achieved in the previous three months and submitted by the 30th o f the f i rst month o f the fol lowing quarter. The quarterly report will be prepared by the P IT and cover the status o f each c iv i l works contract, funds committed against budgets by project, and funds disbursed by projects. The quarterly reports will contain the detailed program activities for the next 12 months, updated at the end o f each quarter. The quarterly reports will be discussed by al l the IAs and matters arising treated accordingly. P IT will lead the preparation o f mid-term review report and the Implementation Completion Report (ICR) with assistance from the Ministries, Departments, and Agencies (MDAs) and the Bank.
3. Monitoring and Evaluation o f OutcomesDtesults
59. Monitoring and evaluation o f the overall project will be the responsibility o f the PIT. However, each participating ministry and its agencies will be responsible for collecting information on their respective components. The Quarterly Project Progress Report will report and monitor the outcomes o f activities related to: (a) progress in c iv i l works, services, institutional support, and procurement activities; (b) progress in achieving project development objectives and intermediate outcomes.
60. The MRH has a Department o f Monitoring and Evaluation, with the responsibility to monitor key outcome indicators. A set o f outcome indicators to monitor progress in each o f the transport sub-sectors (road, rail, harbors and aviation) were developed in 2005 in discussions with the development partners, and i s being reported on an annual basis. As part o f the proposed project, the efforts will be further strengthened and studies will be conducted to monitor progress on a regular basis.
4. Sustainability
6 1. Sustainability will be the cornerstone o f the overall project strategy for ensuring quality, continuity and reliability o f the institutional, regulatory and infrastructural improvements carried out under the project. While each one o f the project sub-components has been designed with sustainability in mind, the extent to which al l the achievements under the project are sustained will depend on a number o f factors including: (a) continuing attention to maintenance issues in general and committing sufficient resources to it; (b) the government’s willingness to create a rational institutional structure for the sector and create an incentive framework to attract and retain suitable technical manpower to address sectoral issues in a comprehensive manner; and (c) strengthening the local construction industry and strengthening the role o f the private sector in the management o f transport sector activities.
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62. The project has been designed with a clear focus on maintenance, capacity building, and improving the governance o f all stakeholders in the transport sector. On the particular issue o f road maintenance, road fund currently supports about 60 percent o f periodic maintenance and 80-90 percent o f routine maintenance; as part o f the TSP, management o f the road fund would be strengthened and government i s committed to making maintenance a f i rs t priority. As a result o f the initiatives, road fund i s expected to cover 100 percent o f routine maintenance and over 75 percent o f periodic maintenance. On strengthening the capacity o f domestic construction industry, the government has prepared an action plan with a focus on building management capacity o f private contractors and employers, strengthening the business environment, and packaging the contracts in small lots (especially for feeder roads) to enhance local participation and employment. The action plan will be implemented as part o f the TSP.
5. Critical R i s k s and Possible Controversial Aspects
63. follows:
Key risks associated with the project and corresponding mitigation measures are as
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Table 2: Risks and Mitigation Measures
Risk
Weak commitment of GOG to institutional reforms in the transport sector.
The project involves two ministries and a number of agencies, departments and entities. While MRH has long experience working with the Bank, MOT i s a relatively new ministry. As a result, MOT has limited capacity in managing Bank’s procurement and financial procedures which may adversely impact project implementation and increase risk. The risk of funds not being used for intended purposes, economically and efficiently.
GOG does not enact and implement tariff increases for the road fund to keep pace with inflation and maintenance needs.
The investment programs of different sub-sectors are not well coordinated and lead to sub- optimal investments.
Inadequate performance of the local construction industry and quality assurance of contract works.
~
Rating
S
S
S
S
S
M
~~~~
Mitigation measures
MRH has prepared an Institutional Restructuring Study, with extensive stakeholder participation and consultations. Study recommendations were discussed during DPs Annual Meeting in April 2008. As part o f the proposed project further support will be provided to develop specific instruments to implement the study recommend- dations, including legislative and regulatory frameworks. Key measures include: (a) the primary project executing agency wi l l be MRH with a centralized FM system and operating a single Designated Account; (b) setting up of a Finance Management Team o f Heads o f Accounts of IAs, headed by Director of Finance (MRH), for coordination and effective project management; (c) set up a Procurement Team in MRH, headed by Director Procurement, for overall coordination, management and quality control of al l project related procurement activities.
a) the MRH will prepare Annual Work Plan and Budget, with details of expenditures by each component; b) conduct procurement, financial and technical audits on an annual basis; c) arrange- ments have been established with KNUST and GIMPA to provide training in the use of Bank’s procurement procedures. Discussions on-going with GOG on arrangements to meet the maintenance needs and develop a prioritized maintenance program. MRH has initiated a review of road hnd management and i s committed to implement study recommendations. The investment program has been developed in accordance with the agreed NTP and has been vetted extensively by al l DPs. The government i s also preparing an ITP to develop a prioritized investment program, considering the different modes and their complementarities. A consultation and participation mechanism i s being put in place to strengthen quality control and oversight. MRH has already commenced a contractor reclassification process and will be creating specific programs to strengthen capacity of local contracting and consulting industry. Also a training program will be designed for the MRH and i t s agencies specifically geared to improve management capacity and accountability.
Residual Risk
Rating S
M
M
S
M
M
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Risk
Overall Risk Rating
Failure o f GOG to create an enabling environment for private sector investment in transport infrastructure and services.
I S
Increased supply of improved roads may lead to higher traffic accidents and fatalities.
Rating
S
M
Mitigation measures
Road maintenance and construction activities in the country are almost entirely carried out by the private sector. The MOFEP has set up a unit to evaluate private sector proposals and i s exploring options to leverage private sector financing including road construction. Road designs will be developed to minimize traffic accidents and particular attention will be paid to black spots. Ghana NRSC i s one o f the most effective organizations in sub-Saharan Afi-ica; it has developed action plan, built capacity in road safety committees and developed and implemented weekly media programs targeted at various road users. Under the proposed project, support will be provided to further strengthen road safety activities.
Residual Risk
Rating M
L
M
H=High; S=Substantial; M=Moderate; L=Low
6. Credit Conditions and Covenants
64. By effectiveness:
0 The Recipient has adopted the PIM, in form and substance satisfactory to the Association; and
0 The Implementation Agreements have been duly executed by the IAs.
65. Covenants applicable to project implementation
0 Standard financial management, procurement and implementation covenants as tailored to the project; and
0 Project-specific covenants relating to: (a) maintenance o f the PSC, PIT and IAs; (b) execution and compliance with an implementation agreement among the IAs and with the project implementation manual; (c) preparation o f annual work plans and budgets for approval by the Bank; (d) implementation o f the project in accordance with the ESMF/RPF/EMPs/RAPs; and (e) key outcome indicators.
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D. APPRAISAL SUMMARY
Sub-Component
GHA road (Ayamfuri-Asawinso) DUR Roads
- Giffard Road - Burma Camp Road
1. Economic and Financial Analyses
NPV (@ 12%) ERR FYRR (US% million)
55.0 17.9% 22.4%
2.5 20% 2.7 15%
66. The civil works, including. contingencies, represent about 75 percent o f project costs. Economic analysis was not conducted on capacity building, policy reform, studies, and project management sub-components. The investments in feeder road network (which includes spot improvements and minor rehabilitation at a cost o f about US$100,000-US$300,000 per road section) were selected on the basis o f cost-effectiveness analysis. An economic analysis was conducted for the civil works, which consist o f reconstruction, rehabilitation, and upgrading o f the: (a) Ayamfuri-Asawinso (GHA sub-component); and (b) urban road network (DUR sub- component).
Table 3: Economic and Financial Analysis
67. For the GHA road, the main benefits resulting from improving the road section to asphalt concrete standard include reduction in vehicle operating cost to existing traffic and transport cost savings for diverted freight traffic. The economic analysis was undertaken using the road planning model, the Highway Development and Management Model version 4 (HDM 4). The initial economic analysis was undertaken in 2006 which was updated in July 2008 to take into account a major change in input costs. The switching value analysis shows that construction costs would have to r ise by 44.8 percent before the project becomes marginal (i.e., has a 12 percent rate o f return). Similarly, traffic benefits would have to fall by 34.6 percent to achieve the same result. The f i rst year rate o f return (FYRR) i s 22.4 percent (well above the opportunity cost o f capital o f 12 percent) indicating that the project i s timely. The proposed sub-project would induce positive socio-economic impacts by facilitating trade between communities and regions. A majority o f households engaged in horticulture (Le., pineapples), vegetables and legumes farming (Le., tomatoes and the like) would benefit from improved road conditions resulting in reduced post-harvest losses. The resulting benefits have not been quantified.
68. The potential benefits from improvements in Accra East corridor (Giffard road and Burma Camp road) were computed based on vehicle operating cost, travel time and road maintenance savings. Traffic was simulated based on 30 year l i f e using the Questor model. The economic rate o f return (ERR) for the Giffard road i s estimated at 20 percent and Burma Camp road 15 percent.
69. For the investment in feeder roads, given the small nature o f individual investments in phase 1, the selection o f specific feeder roads i s based on cost-effectiveness criteria in the
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following manner: First, feeder roads already included in the existing national network but o f low standard were considered. Second, feeder roads were prioritized according to their existing condition; the poorest quality roads were given top priority. Against this screening, roads were selected, by region, on the basis o f maximizing population given all-year accessibility to the primary and secondary road network. Finally, this selection was screened against availability o f social services, including health clinics, schools, markets, and extension services.
2. Technical
70. The project i s a part o f an integrated program o f development activities for Ghana’s transport sector from 2008 to 2012. The main road (Ayamfuri-Asawinso) would establish a south-north transport corridor in the west o f Ghana, linking the timber and mineral rich areas, and neighboring countries located west and north o f Ghana, to the deep water port o f Takoradi. Currently, the road section consists o f poor gravel and sealed road surface, which will be improved to asphalt concrete standard. The urban and feeder roads have been selected for upgrading and periodic maintenance on the basis o f sound technical, economic, and environmental analyses. The feeder roads have been selected taking into consideration the improvements in connectivity, agricultural output, and access to socio-economic services. Taking into consideration the rapidly increasing road construction costs in sub-Saharan Africa, particular attention will be paid to managing the quality, costs, and delays. Effective supervision monitoring mechanisms are being developed to ensure that the physical works are completed within the agreed contractual time.
7 1. The second year program for the feeder roads will be prioritized to support commercial agriculture around growth poles, in coordination with the Ministry o f Agriculture. The procedures for maintenance o f feeder roads will also be reviewed and updated.
3. Fiduciary
72. Financial Management: The primary executing agency for the project will be the MRH, which wi l l coordinate activities o f the various IAs and BAS under the project. To ensure proper coordination and effective financial management (FM) arrangements in the project, including adherence to service standards on uniform reporting, meeting deadlines for submission o f payments vouchers, processing procedures, etc., all Heads o f Accounts o f the IAs have formed a FMT headed by the Director o f Finance (MRH), as part o f the PIT. The IAs will be responsible for contract management and implementation, while the respective ministries will be undertaking this task on behalf o f the BAS within their sub-sectors. The responsibility o f the FMT i s to ensure that throughout implementation there are adequate financial management systems in place which can report on the use o f project funds. The responsibility for final verification and authorization o f payments for all contracts and activities, maintenance and operation o f the project’s designated account, and make payments to contractors and service providers will be the responsibility o f MRH. As part o f the project financial management arrangement it has been agreed by all IAs to adopt a centralized financial management arrangement under the MRH which will operate a single Designated Account.
21
73. Assessment o f the financial management arrangements at MRH concludes that there are systems in place that satisfy the Bank's minimum requirements under OPBP10.02, and overall financial management arrangement i s rated as moderate.
74. Procurement: An assessment o f the capacities o f the two Ministr ies and other IAs to implement procurement actions for the Transport Sector Project (TSP) was carried out by the Bank in January 2009. The assessment reviewed the organizational structure for implementing the project and the interaction between the IAs and their staff responsible for procurement and relevant central unit for administration and finance. The assessment established that the ministries and other IAs: (a) were responding to Ghana's Public Procurement Law; (b) had entity tender committees and review boards in their permanent organizations; (c) had adequate internal technical and administrative controls and anti-corruption procedures; and (d) had satisfactory appeal mechanisms for bidders.
75. The assessment showed that the road sector IAs (MRH including, DUR and DFR, and GHA) have handled Bank projects in the last six years under the RSDP and have, as institutions, gained significant experience to handle procurement under the project. However, the capacities o f other BAS included in the road component (KNUST, GTTC, DVLA, and NRSC) were found to be inadequate because they have only participated in relatively few and simple procurement activities, using the Bank's procedures and guidelines.
76. The assessment o f the MOT identified that MOT i tse l f has limited capacity and experience in procurement using the Bank's Guidelines. In contrast, the other transport sector IAs (GCAA, GACL, and GPHA) have relatively strong procurement units, headed by qualified procurement staff that have also been trained in the use o f the Bank's procurement procedures at Ghana Institute o f Management and Public Administration (GIMPA). Further, the other BAS included in the transport component (MU, GMA and VLTC) also have limited or no experience in the use o f Bank's "Guidelines: Procurement under IBRD Loans and IDA Credits" dated May 2004, revised October 2006; and "Guidelines: Selection and Employment o f Consultants by World Bank Borrowers" dated May 2004, revised October 2006.
77. Based on the above, each o f the IAs will be responsible for procurement for their components, and MRH and MOT wi l l handle procurement for the BAS with the technical input o f the BAS. To strengthen the procurement arrangements and improve quality control, MRH and M O T have agreed to take advantage o f the overall project coordination role assigned to the MRH. A Procurement Team would be set up prior to effectiveness as part o f the PIT, comprising o f key procurement staff o f all IAs and headed by the director o f procurement in MRH. The key function o f the Procurement Team wi l l be to coordinate the work o f different Ministries and IAs and provide quality control for all procurement related activities. The residual overall project risk for procurement will be moderate.
4. Social
78. Social Benefits. The proposed road rehabilitation works, particularly feeder roads and the Ayamfuri - Asawinso trunk road which traverses rural areas and resource rich western region, are expected to contribute to income generation, savings in travel time, and reduced transport burden. This would result in improved access to public services, schools, health clinics, and
22
agricultural inputs such as fertilizers, which will contribute to the achievement o f Millennium Development Goals. The urban roads will contribute to enhanced mobil i ty and access to social services, and improve competitiveness o f the city.
79. Gender issues. The road projects will benefit women and other vulnerable groups (children, elderly and poor) by responding to their mobil i ty needs through the provision o f better access to basic social services, safe and enhanced access to these facilities, both in rural and urban roads. Small cereal drying platforms will be provided in selected villages along the Ayamfuri - Asawinso road corridor, which traverses rural areas, and along selected feeder roads. Likewise, road side markets to benefit village women traders will be supported. Gender issues were assessed in the Social Impact Assessment (SIA) and the Resettlement Action Plans (RAPs).
80. Human Immunodeficiency Virus/ Acquired Immune Deficiency Syndrome (HIVIAIDS) prevention. The practices (policy, strategy, operations documentation), established in combating HIV/AIDS in ongoing projects will be continued. Road specific HIV/AIDS prevention action plans will be prepared in accordance with the Ministry's framework during mobilization. The target groups o f the plans will include: road contractors and their staff, supervision consultants, and their staff, local communities along the roads, and professional drivers and passengers. Sexually transmitted infections (STIs) and HIV /A IDS prevention clauses will be incorporated in the works contracts.
5. Environment
81. The c iv i l works to be carried out in the first year work program for this project include the upgrading and rehabilitation o f existing roads. The planned c iv i l works will not have irreversible negative impacts during project implementation. This is especially the case for the road upgrading works, which will not require road re-alignments and will require only limited land acquisition. The potential adverse environmental and social impacts identified wil l be limited and site specific; they will be mitigated in compliance with the Bank's safeguard policies. An Environmental and Social Management Framework (ESMF), and a Resettlement Policy Framework (WF) were prepared for the road sector in 2006, and re-disclosed for this project in December 2008. Environmental Impact Assessments (EIAs), Environmental Management Plans (EMPs), and Resettlement Action Plans (RAPs) for the first year's road projects (four roads) have been prepared and disclosed in-country and at the InfoShop in March 2009. Additional works to be carried out in the second year include: a) minor c iv i l works (construction o f classrooms, laboratory, hostel, workshop and offices); and b) feeder roads improvements. These works will be subject to the Environmental and Social Management Framework (ESMF) requirements and site specific Environmental Impact Assessments (EIAs)/Environmental Management Plans (EMPs) and RAPs, if need be. The cost for the implementation o f the mitigation measures as identified in the RAPs will be covered by GOG while the cost for HIVIAIDS prevention and EMP civ i l works operations related to project investments and capacity building will be financed by the Bank.
23
6. Safeguard policies Safeguard Policies Triggered by the Project Yes N o Environmental Assessment (OP/BP 4.01) [XI [I Natural Habitats (OP/BP 4.04) [I [XI Pest Management (OP 4.09) [I [XI Physical Cultural Resources (OPBP 4.1 1) [XI [I Involuntary Resettlement (OPBP 4.12) [XI [I Indigenous Peoples (OP/BP 4.10) [I Ex1 Forests (OP/BP 4.36) [I [XI Safety o f Dams (OP/BP 4.37) 11 [XI Projects in Disputed Areas (OPBP 7.60) [I [XI Projects on International Waterways (OP/BP 7.50) [I [XI
Environmental and Social Safeguard Issues in Bank- [I [XI
Piloting the Use o f Borrower Systems to Address
Supported Projects (OP/BP 4.00)
7. Policy Exceptions and Readiness
82. N o policy exceptions are planned. The proposed project meets all quality at entry criteria and it i s at a high level o f implementation readiness. The detailed engineering designs and bidding documents are ready for the f i rst year’s work. The EIA and RAP for the first ’s work have been disclosed and an action plan has been developed to address the key issues prior to contract mobilization.
24
Annex 1: Country and Sector Background Ghana: Transport Sector Project
accountin
The Transport Sector in Ghana
1. The transport sector plays a strategic role in the economy o f Ghan for about four-five percent o f gross domestic product. The country has -a well developed transportation system consisting o f two large deep-water ports, a 947 km railway network, a 68,000 km road network, one international airport and eight regional airports and airstrips throughout the country. Ghana’s two ports handle seven million tons o f import and export traffic annually. This figure will increase over the coming years if Ghana i s able to capture a larger share o f shipments to and from landlocked countries, particularly Mali, Burkina Faso, and Niger. Roads are the predominant mode o f transportation, currently accounting for 94 percent o f freight and 97 percent o f all traffic movements in the country.
2. There are no available alternatives to roads other than for movement o f bulk commodities for export, which are suited to transport by rail from central collection centers and mining areas to the ports. The railway system has limited coverage (Accra-Kumasi-Takoradi) and serves only the southern part o f the country, excluding the largest port o f Tema. It i s presently operating at low efficiency under parastatal management, and options for granting concessions on infrastructure and operations are under consideration.
3. In the past, Ghana had a relatively healthy infrastructure base. However, economic crisis and decline during the 1970s and 1 9 8 0 ~ ~ combined with a weak institutional capacity led to deterioration in the quality o f the infrastructure network and i ts operation. This l e f t transporters and producers without the ability to expand services to a larger segment o f the population and unable to compete effectively in regional markets.
4. Since 1990, the government has developed, within a framework o f projects supported by the development partners, major efforts to remedy deficiencies in the transport sector. In 1997, the Government o f Ghana (GOG) reformed i ts role and functions in the sector, increased private sector involvement particularly in port operations, maritime trade, and road maintenance. A Road Fund was also set up with a dedicated source o f funding for road maintenance.
5. The importance o f transport services and infrastructure was highlighted in the Second Growth and Poverty Reduction Strategy (GPRS 11) as an enabler for economic growth and poverty reduction. It i s increasingly recognized that the transport sector serves and facilitates other sectors. Also, Ghana’s location at the cross-roads o f several trade corridors in West Africa makes it an important player in the regional integration and trade facilitation programs o f Economic Community o f West African States and West African Economic and Monetary Union.
6. Available international evidence suggests a strong positive relation between road investment, growth, and poverty reduction. In Ghana, studiesg conducted during 2004-2005 reveal that:
Baseline Studies o f the RSDP, Ministry o f Roads and Highways (2006), Ghana 25
0 improved roads results in (a) a 20 percent increase in trips to hospitals; (b) a 23 percent increase in the price o f maize received by farmers; (c) a 65 percent lower costs o f traveling to markets; and (d) a 41 percent lower costs o f traveling to welfare facilities; a direct positive correlation exists between the incidence o f poverty and road condition; and improvements in regional corridors reduce delays in cross-border movement o f goods, people and services; reduce waiting time at ports; and promote economic activities.
0
0
Expectations for the Transport Sector and Growth
7. recognized and the GPRS I1 sets out broad pol icy objectives for the transport sector as follows:
The role o f transport infrastructure and services in economic growth has also been widely
0 T o ensure the provision, expansion and maintenance o f appropriate transport infrastructure, which strategically l i n k s the rural production and processing centres to the urban centres, and while ensuring the provision o f an affordable and accessible transport system that recognizes the needs o f people with disabilities.
8. The government’s other stated objectives for the transport sector include:
0 ensuring provision o f affordable, safe and accessible transportation system that recognizes needs o f the people and business enterprises including farmers; and
0 developing and strengthening appropriate legal, institutional and regulatory framework to regulate al l modes o f transportation to ensure an efficient transportation system.
9. Recognizing the importance o f trade to Ghana’s growth, a long-standing policy objective for the transport sector i s to establish an efficient, modally complementary and integrated transportation network for the movement o f people and goods at the least possible cost within the country, as wel l as to and fiom the country, both regionally and internationally. The government’s recent Transport Sector Growth Workshop (May 2006) resulted in a matrix o f indicators and strategies aimed at achieving the fol lowing outcomes for the transport sector:
Integrated and adequately funded transport system; Improved transport infrastructure and facilities; Reduced transport costs for users and operators; and Effective policy formulation and coordinatiordregulation to support an efficient transport system.
26
The Strategic Context
10. Ghana’s national policy framework i s changing. For policy makers and practitioners throughout the transport sector, it means that the way decisions and priorities are made, and the way performance i s both measured and reported i s changing. For example, due to the demands o f globalization and the global pursuit for sustainable development, the government i s required to develop polices that manage Ghana’s international relations in areas such as trade, investment and environmental impacts. The same goes for laws and regulations that apply to the transport sector. Compliance with international conventions and harmonization o f laws and regulations throughout the West Africa sub-region will facilitate more trade and reduce costs and uncertainties for producers, passengers and service providers.
\
11. The national development policy framework has also evolved over the last five years. The GPRS (2002) and i ts successor, GPRS I1 (2005), set out a coordinated program for the economic and social development o f Ghana. GPRS I1 incorporates the priority Millennium Development Goals, and, as confirmed by the priorities in the annual budget statements, GPRS I1 determines the annual priorities for allocating government resources. GPRS I1 and the Millennium Development Goals also provide the primary focus for the Development Partners (DPs) funding in Ghana. Furthermore, the importance o f transport infrastructure i s highlighted in GPRS I1 as an enabler for economic growth and poverty reduction. The transport sector serves and facilitates other sectors such as trade, private sector development, agriculture and tourism.
The current state of Transportation in Ghana
12. Table 1 below gives a good indication o f government’s investment in the transport sector where about 99 percent o f this investment i s dedicated to the road sub-sector, including statutory funds received through the Road Fund. It should also be noted that state owned enterprises such as Ghana Ports and Harbors Authority (GPHA), Ghana Civil Aviation Authority (GCAA), and Ghana Railway Company Limited (GRCL) generate income through sales and licenses and receive some investments from the private sector. These figures are not included in this table. There may be the need to review the current trends in allocating government funds if some impact i s to be made in other modes o f transportation.
Table 1: Government’s investment in the transport sector (in Trillion Cedis)
2008 4.748 0.316 ~ 0.229 j 61.687
Note: Budget i s in old Cedis ($lO,OOO= GH61)
27
Road Transport
13. Road transport i s by far the dominant carrier o f freight and passengers in Ghana’s transport system. I t carries about 94 percent o f freight traffic and reaches most communities, including the rural poor. Ghana’s road network was about 38,000 kilometers in 2000. Since then there has been rapid increase to 49,000 km in 2001 and to 60,000 km by the end o f 2007. In the meantime, improvements in road condition have been gradual. For example, the road condition in 2004 was 36 percent good, 36 percent fair, and 28 percent poor as compared to 39 percent good, 29 percent fair, and 32 percent poor in 2007. Deferred maintenance o f roads also has cost implications. Apart f iom increasing vehicle operating cost to service providers, rehabilitation cost to government could be as much as 8 - 10 times higher when carried out at a future date. Improvement in road condition could be achieved through planned expansion o f the network, effective maintenance and financial management and improvement in the local construction industry.
14. There has been a rapid growth o f vehicles in recent years. The effect i s congestion in urban areas, resulting in slow and unreliable journeys. Congestion i s also being observed in towns located along main highways. Moreover, based on the experience o f other developing countries, there i s likely to be a r ise in accidents, fatalities and injury rates. This trend may already be emerging in Ghana. Safety issues also emerge due to ineffective control and enforcement o f speed limits on trunk and urban roads. The situation i s worsened when considering the additional traffic generated by growing freight movements through the cities and along the highways. Maintenance, improvements and implementation o f traffic control devices are inadequate. There i s unsafe behavior o f road users and insufficient enforcement o f traffic regulations.
15. Urban areas need special attention. Traffic congestion in the city leads to pollution, health related problems, wasted time and excess fuel consumption. Currently, the roads are packed yet there i s the need to create greater carrying capacity. Public transport i s not regulated and no mechanism currently exists for i t s effective regulation. Land use and spatial planning are not integrated with transport planning. Development i s taking place without consideration o f transport needs or impacts. Unplanned and uncontrolled development has resulted in an urban sprawl pushing out the boundaries o f the cities and making demand for transportation more complex. As a result, travel distances have become longer, travel times and costs have increased considerably, marginalizing the poor. Retail and industrial developments are carried out with inadequate transport provisions such as parking and public transport linkages. Major facilities such as large markets are planned and developed with l i t t le consideration for transport implications. These poorly planned facilities result in a worsening situation regarding road congestion.
16. Enforcement o f existing laws and regulations, safeguarding transport infrastructure, services, and users i s weak or inconsistently applied. Axle load control i s ineffective leading to excessive damage to road pavements. Poor traffic management, especially in the cities compounds the congestion problem. Unrestrained encroachment o f physical development o f
28
buildings, people and traders along transport infrastructure corridors causes severe restrictions in traffic movements and resulting congestion.
17. There are no standards for controlling vehicle condition or emissions. Emissions from passenger vehicles account for 70 percent o f total emissions in Ghana. Standards and laws regulating vehicles and their operations also vary throughout the Afr ican sub-region, creating non-physical barriers to trade with neighboring countries.
18. Since 1961, it has been increasingly difficult to provide adequate funding from the consolidated fund to maintain the road network. A f i rs t generation road fund was established in 1985 to help solve this problem. In 1997, the Road Fund Act (Act 536) was promulgated to provide a legal framework for road maintenance. This has resulted in great improvements in funding o f road maintenance. The current level o f the road fund is about 60 percent o f the projected level o f maintenance costs.
Table 2: Road Fund - Fuel Levy for the period 2002-2007
I Year Fuel Levy (per liter) ~ Actual ; Actual Revenue L __ - - .-I___- I -- - -r-- - - ------I - ) - _ I _ I --
cedis Exchange , Equiv. U S ' consumption ~ Billion ; US$ i rate 1 cents (billion liters) 1 cedis I Million ' 8013 ' 2.87 i 1.62 ' 371 46
72 I 628 1710 78 i 7 2 8 - I ~ 80
--.. .I I __ - _I - - - I - , * I l_l__l _ j _I-
: 230 2002 2003 400 ~ 4.60 1.61 8695
I 1.78 I400 , 9060- 2004- I
1.31 2006 ' 600 9204 6.52 1.71 1086 118 2007 600 9391 6.39 1.83 1098 117
" " 111
_I I - - - I_ - - -_ - - _- -e-- " - _I__ -
- I-- .x xI1 - ' 4.42 6.12-
r -- - _ _ - - - - - - - ___"
___ 4 - 2005 400 ~ 9 l i 4 -
Source: 2007 Review Report, Ministry o f Transportation Note: Budget i s in old Cedis ($lO,OOO= GH$1)
Railway
19. Ghana's railway network has a length o f 947 kilometers o f mostly single track rai l o f 1.067m (3' 6") gauge located in the southern part o f the country. In 1965, it carried 2.3 mi l l ion tons o f freight and 8 mi l l ion passengers at a time when the GRCL was financially viable. By 1985 however, due to a number o f factors, including ineffective management, the changing world economy, sharp drops in commodity prices, and competition f rom the road sector, among others, the rai l sector's position as a prominent transport mode has diminished. With lower revenues and increasing labor costs, ra i l operations could not support modernization and sustain its maintenance program. The worsening financial situation o f the railway resulted in the usual vicious cycle faced by many railroads: default on loan payments --$ poor maintenance - drop o f service quality - loss o f customers - more drops in revenues.
20. There have been some improvements in rai l sector performance after support f rom development partner assistance programs. This allowed Ghana to undertake some rehabilitation
29
works and acquire new rolling stocks. Additionally, Ghana Bauxite Company and Ghana Manganese Company (which critically depend on rail exports o f their products), advanced money for track maintenance. As a result o f these investments, there has been a general increase in demand for rail freight and passengers. But service performance and financial risk are s t i l l overriding concerns.
21. The rail system has the potential to become a vital part o f Ghana’s transport system, carrying a larger portion o f travelers and freight on the busiest transport corridors. As the economy grows, there will be increasing demand on the transport system, and rail can become a viable alternative to road transport, provided costs are kept under control, efficiency and reliability are imflroved, and ongoing investments are secured for development and maintenance o f the system. The GOG i s actively considering private sector participation as a means o f supporting rail sector improvements and future development.
22. A GRCL concession process actually began in August 2002 but collapsed in August 2005 when arrangements for divestiture could not be successfblly completed. Currently, attempts are being made to enter into a public-private-partnership arrangement with current and potential users.
Civil Aviation
23. Civil aviation functions in Ghana comprises o f policy formulation, technical (safety) and economic regulation; airport (asset) management; and air space management. Service providers consist o f international and domestic airlines that operate to and from Kotoka International Airport (KIA) to various international destinations as well as Kumasi, Takoradi, and Sunyani in Ghana. A maintenance bay has been established at KIA to service domestic operator aircrafts.
24. General aviation development i s being encouraged because o f economic benefits for the country in the areas o f agriculture spraying and medical evacuation, among others. A private assembly plant o f small aircrafts has also been established.
25. The responsibility for management o f the aviation sector i s with the Ministry o f Transport (MOT). Institutionally, all these functions are being performed by the GCAA. Under the Civil Aviation Act, 2004 (Act 678) the government plans to separate airport management from other functions. KIA, as the country’s only international airport, handles all o f Ghana’s international flights. Four other airports with paved runways in Kumasi, Takoradi, Sunyani, and Tamale handle domestic flights. Apart from Way which i s a paved airfield, there are other airstrips with short unpaved runways at Yendi, Paga, Obuasi, Ho, Tarkwa, Kete Krachi, Bimbilla, Saboba, Mole Game Reserve, and Salaga which provide for medical and other emergency services.
26. KIA handles about 800,000 passengers and 50,000 tons o f freight annually. Passenger traffic has increased in recent years, growing at an average o f seven percent annually over the past five years. The growth in passenger and airline traffic i s a reflection o f Ghana’s economic growth in recent years. KIA i s being renovated as part o f a phased rehabilitation program funded from internal and external sources. The program includes extending the runway and installing
30
modern navigation and communication equipment. Boarding lounges will be renovated in the next phase. Other airports in Ghana need investment for improving infrastructure and navigation equipment.
27. Ghana controls the entire Accra Flight Information Region, which includes the upper air space o f Ghana, Togo, and Benin. The government has adopted a liberalized open skies policy that allows for competition and cross-border investments and l i f t s restrictions on ownership and control while s t i l l keeping some limits on flight frequency. Compared to other parts o f the world, air fares for both passengers and airfreight to and from Ghana are high and in some cases seat availability and air cargo space are limited. This discourages business travel, tourism, and foreign investment.
Maritime and Inland Water Transport
28. Ghana’s two sea ports are in Takoradi and Tema. Although they handle growing cargo volumes, performance o f the ports i s challenged by an increasing amount o f congestion outside the port gates, inefficient intennodal interchanges and hinterland movements, and long cargo dwell times.
29. The relatively low productivity at Tema’s container berths should soon be a condition o f the past. In 2005, three new gantry cranes were installed in Tema’s container berth resulting in an increase o f berth productivity from six to eight moves per crane hour, where ships’ cranes were used, to a productivity rate o f about 25 moves per crane hour with the new gantry cranes. The investment in the cranes as well as in a new modern terminal was made possible through a concession agreement with a global terminal operator. It i s anticipated that productivity gains will extend throughout the terminal area as a result o f the new investment.
30. The improved efficiency in Tema will raise the likelihood o f the port becoming a regional trans-shipment hub and enhance i t s role as a transit hub serving neighboring countries. This will generate more traffic in port-urban areas including Accra, as well as along transport corridors. To alleviate the congestion created by the increasing cargo volumes, there i s the need to look at alternative arrangements, such as the establishment o f a network o f inland terminals and truck staging areas and other modal options.
31. There has been greater private sector participation in other cargo handling services. Today, 70 percent o f cargo in Tema i s handled by private stevedoring companies. Though the port authority in Tema continues to handle a guaranteed 30 percent o f the cargo, it i s expected that there will be a transition towards competition for all cargo handling activity to liberalize the market and make it easier for other f i r m s to compete. As other concession opportunities arise, open competitive tendering could be encouraged. An appropriate regulatory system must be put in place to monitor anticompetitive behavior o f port service providers.
32. The Volta Lake Transport system spans about 450 kilometers from the south to the north with ports at Akosombo, Buipe and Yapei and major ferry crossings at Yeji, Keta Krachi, Dambai and Kpandu. This important inland waterway transports petroleum products, cement, and agricultural commodities. It also provides many passenger services, mostly for the rural
31
population living along the lake. The operations started o f f well many years ago, but to be successful a number o f challenges need to be overcome. Periodic drops in the level o f the lake inhibit longitudinal movement and expose Debre shoal, making it difficult to reach Buipe. Cross- lake services are also affected as a result o f inability to access properly constructed landing stations. Other challenges include aging equipment, underwater obstructions to safe navigation, lack o f navigational aids, and lack o f regulation for canoe construction, use, and operations. Improving lake transport will complement land transport and offer certain economic advantages to users. Barge transport has distinct advantages over other modes. Greater use o f lake transport will also divert some truck movements, reducing overloading on roads, traffic congestion and road maintenance costs.
33. While inland water transport does not constitute a significant part o f Ghana’s transport system, some routes are critical to small communities. Small boats and canoes operate on Ankobra, Pray Oti, Black Volta, White Volta, Volta south o f Akosombo and Lake Bosumtwi. Private small owners operate in these areas moving foodstuffs with virtually no control or regulation.
Non-motorized Transport (NMT)
34. NMT includes all forms o f non-motorized transport including walking, bicycles, push carts, wheelbarrows and animal drawn carts. Currently, only one to three percent o f urban dwellers in the south use NMT. In the north, NMT i s more extensively used. Motorists’ failure to recognize and respect cyclists makes cycling dangerous. Infrastructure for NMT in urban centers i s inadequate. There i s also a lack o f control and safety measures for operators, hawkers and others who encroach on the few facilities such as bicycle paths that are available. There i s a lack o f appropriate legislation for NMT operations.
Inter-modal Transport
35. Ghana’s planning and decision making in the transport sector continues to focus almost exclusively on improving individual modes, with very l i t t l e attention paid to how improvements in one mode affects others. Road agencies, for example, focus only on roads. As a result, lack o f attention to providing effective interfaces between road, rail, and ports has contributed to truck congestion outside port gates.
36. The Volta Lake i s one example where some form o f inter-modalism has been developed. This involves the transfer o f freight from truck-barge, and pipeline-barge. Bus-ferry transfer facilities were also considered in the design.
37. A pipeline transports o i l 50 km from Tema to the Volta Lake port in Akosombo. Petroleum products are then transferred by barges from Akosombo to the port o f Buipe in the Northern Region, and then transferred into trucks for transport to Tamale and other places in the north. The pipeline from Buipe through Tamale to Bolgatanga has just been completed. It will reduce road deterioration caused by petroleum tanker trucks. This intermodal arrangement for transporting petroleum products to the north wi l l cut transport costs, congestion, and accidents while lessening any negative impact on the environment.
32
38. The establishment o f an inter-modal framework where road, rail, inland water and pipeline transport and logistics services co-exist and complement each other will provide a broader range o f options to shippers and users.
33
Annex 2: Major Related Projects Financed by the Bank and/or other Agencies
Ghana: Transport Sector Project
PROJECT IP DO SECTOR ISSUES ADDRESSED RATING RATING
2157-GH)
I
Local Government Development Project - Closed (Cr. No. 2568-GH )
Urban 5 Project -Phase l-Closed (Cr.3 3 30-GH )
Road Sector Development Program - Closed (Cr. No. 3554-GH)
Urban Transport Project (with AFD and GEF) -ongoing (Cr. No. 4334- GH)
West Africa Transport and Trade Facilitation Project -ongoing (Cr. - - . NO. 4439-GH) OTHER DEVELOPMENT AGENC AFD: Road rehabilitation in Kumasi-ongoing
AfDB: Rehabilitation o f Sections o f the Central and Coastal Corridor Trunk Roads
CIDA (Canada): (i) Local Government Reform Study-ongoing; (ii) Fiscal Decentralization
DfID (UK): Performance Improvement Program-ongoing
DANIDA
EC: Rehabilitation o f Eastern Corridor Trunk Roads
-
-
S
S
S
S
ES
Urban infrastructure, decentralization, improved fiscal management
Urban infrastructure, decentralization, improved fiscal management
Urban infrastructure, decentralization, improved fiscal management
Main, urban and feeder roads, studies, traffic management
Transport infrastructure in Accra and several other cities
Rehabilitation o f the main north-south inter-regional road
Urban roads
Trunk Roads
(i) Adopting budgeting and expenditure management reforms undertaken at the central level to the local level; (ii) Implementation o f fiscal decentralization
Support civi l service reform for the entire public sector (ministries, departments and agencies)
Trunk Roads I
Implementation Completion Report (ICR), when available.
HS-Highly satisfactory, S-Satisfactory, U-Unsatisfactory, HU-Highly unsatisfactory 34
Annex 3: Results Framework and Monitoring Ghana: Transport Sector Project
I
I PDO
Improve mobility o f goods and passengers through reduction in travel time and vehicle operating cost, and improvement in road safety standards.
Intermediate Outcomes
Aviation, Maritime, and Railways
Table 1: Results Framework
0
least 20% on project-fmanced roads, 0
reduced by at least 10% on project- financed roads. 0
10,000 vehicles to 19 per 10,000 vehicles. 0 Rural Accessibility Index (MI) increased from 53% to 57%.
Condition of trunk road network in good and fair condition improved from 83% to 88%, for urban roads from 36% to 50%, and for feeder roads from 72%
Average travel time reduced by at
Average VOC (in real terms).
Fatality rate reduced from 22 per
to 85%.
0 Enacted Road Traffic Regulation and implement Axle Load Control Policy Action Plan. 0 Funding for road maintenance increased from 60% to 75% o f the planned maintenance needs. 0 Road fund management strengthened. 0
urban, and feeder) rehabilitated.
improved (spot improvement).
Length of road network (trunk,
Length o f feeder road network
0 GRDA made operational. 0 Completion o f Master Plan for Regional Airports. 0 Completion o f detailed design and safeguard reports for Takoradi Airport. 0 Completion o f Feasibility Studies for development of landing stages and reception facilities along the Volta Lake. 0 Completion of feasibility study for dualization of Meridian road in Tema. 0 # of courses offered by RMU.
Use of Project Outcome Information
YR1-YR5: Use to monitor results closely; lower values may flag high expectations or poor enforcement and trigger appropriate actions.
Use o f Intermediate Outcome Monitoring
YRl-YR5: lower levels would flag possible problems in implementation of the reform program for necessary action.
YR3-YR5: information will be used to study the impact o f road investments on growth and poverty alleviation.
YR2-YR3: Data to feed into preparation of follow-on projects.
YR5: Results to feed into broader government and development partners’ programs.
35
t
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Annex 4: Detailed Project Description Ghana: Transport Sector Project
1. The overall objective o f the project i s to support the National Transport Policy (NTP) in meeting strategic national development goals for growth and poverty reduction. The project development objective (PDO) i s to improve mobility o f goods and passengers through reduction in travel time and vehicle operating cost, and to improve road safety standards. This objective will be achieved through strengthening the capacity o f transport institutions in planning, regulation, operations and maintenance, and through infrastructure investment.
2. The Ministry o f Roads and Highways (MRH) and Ministry o f Transport (MOT) will implement the project. In addition to the ministries, the various departments and agencies which will benefit from the IDA Credit are:
Roads sub-sector: Driver and Vehicle Licensing Authority (DVLA), National Road Safety Commission (NRSC), Kwame Nkrumah University o f Science and Technology (KNUST), Government Technical Training Center (GTTC), Ghana Highway Authority (GHA), Department o f Urban Roads (DUR), and Department o f Feeder Roads (DFR); and
Aviation, maritime and railways sub-sector: Ghana Civi l Aviation Authority (GCAA), Ghana Railway Development Authority (GRDA), Ghana Airports Company Limited (GACL), Ghana Ports and Harbors Authority (GPHA), Regional Maritime University (RMU), Ghana Maritime Authority (GMA), and Volta Lake Transport Company (VLTC).
3. The Transport Sector Project (TSP) envisages a total investment o f US$225.0 million to be funded by IDA at 100 percent. A substantial portion o f the project i s devoted to institutional and capacity building, preparation o f feasibility studies, advisory support, and monitoring and supervision. These activities will be managed and coordinated by the two ministries. The various project components covered by the IDA credit are detailed below.
4. Component A - Support to MRH (US$4.2 million): This i s targeted at: preparation o f feasibility studies to support MRH’s program, policy and institutional reforms (including integration o f Geographic Information System (GIS) representing trunk, urban, and feeder roads network and associated service activities, development o f operating and safety standards and axle load control, strengthening management o f road fund); capacity building (strengthening management information systems, development o f human resource development strategy, supporting a donor coordinator, participation in national and international training courses, technical support to develop legislative and regulatory frameworks to support implementation o f institutional restructuring study recommendations). The details are as follows:
38
Table 1: Support to MRH
Preparation o f feasibility studies
Integration o f Geographic Information Systems (GIS) o f Road Agencies
Capacity Building
Organization o f Development Partner Conferences
I Item I US$ million I 2.5
0.4 1.1 0.2
Item
5. This component will support the following activities:
Component B - Support to Road Sector and Educational Entities (US$6.5 million):
US$ million
Driver and Vehicle Licensing Authority (DVLA) includes technical advisory services to develop improved licensing methods, standardization o f licensing procedures, permits, and collection o f associated 'revenue, improving enforcement procedures; development o f test grounds, operations support (including supervision vehicles, equipment, etc.);
NRSC KNUST GTTC
National Road Safety Commission CNRSC) includes (i) provision o f road safety equipment, production o f handbills, production and distribution o f road safety information materials, information and publicity material to raise awareness o f road safety issues; (ii) provision o f facilities for emergency response services; and (iii) training o f staff in identifying black spots, conducting road safety audits, etc.;
2.0 1.5 1.8
Kwame Nkrumah University o f Science and Technology (KNUST): This component would finance laboratory equipment, computers, construction o f class rooms, visit o f specialists and scholars to support training programs; and
Government Technical Training Center (GTTC) to develop and expand i t s facilities to enhance training o f artisans for the transport sector including the construction and furnishing o f modern class rooms, hostel and workshop. In collaboration with NRSC and DVLA set up a pilot driving academy and educate mechanics on vehicle maintenance standards.
I DVLA I 1.2 I
I Total I 6.5 I
39
6. Component C: Improvement of Trunk Roads (US$64.0 million): This will be implemented by the GHA and consist o f rehabilitation o f a major trunk road from Ayamfuri- Asawinso (52 km) to establish a South-North transport corridor in the West o f Ghana, linking the timber and mineral rich areas and neighboring countries located West and North o f Ghana, to the deep water port o f Takoradi. Support to GHA will also include supervision o f construction, implementation o f environmental and social safeguards, environmental and social safeguard training, and strengthening the technical capacity o f GHA for improving trunk roads and providing axle load equipment.
~ ~~
Construction o f Ayamfuri - Asawinso Road
Supervision
Capacity Building and axle load equipment
Table 3: Improvement of trunk Roads
58.5 3 -0 2.5
I Item I US$ million I
Item
Urban transport infrastructure
Rehabilitation o f Burma Camp
Rehabilitation o f Giffard Road
US$ million
24.0 36.5 13.0
7. Component D: Improvement of Urban Roads and Infrastructure (IDA: US$78.0 million): This component will be implemented by DUR and consists o f rehabilitation o f arterial roads and public transport infrastructure as follows:
Supervision (including environmental and social safeguards)
Capacity Building
Total
Rehabilitation o f the Burma Camp Road; Rehabilitation o f Giffard Road; and Financing urban transport infrastructure in Accra.
4.0 0.5
78.0
8. The first two sub-components form part o f the Accra East Corridor which constitutes part o f the network o f arterials that link the suburban areas o f Accra to the Central Business District. This component would also finance provision o f public transport infrastructure in Accra, including along the bus rapid transport corridor and tributaries in Accra, including bus stations, junction improvements, terminals, depots and preparation o f public transport management plan for central Accra, and including the provision o f technical assistance for the supervision o f the works and related environmental and social safeguards measures. The details are as follows:
Table 4: Improvement of Urban Roads
40
9. Component E - Improvement of Feeder Roads (US$50.5 million): This component will be 'implemented by DFR working towards consolidating the achievement under the RSDP and further improving rural access through efficient and sustainable feeder roads rehabilitation, maintenance and cost effective feeder roads improvement. The roads to be financed in the first year have been identified based on criteria outlined in paragraph 69 in the main text. A total o f 48 feeder road sections with a length o f 163 km will be rehabilitated (minor) and 21 1 km improved (spot improvement) in all regions o f Ghana at a total cost o f about US$20.0 million.
Improvement and rehabilitation o f feeder roads to support agriculture and
Consultancy for supervision
Capacity Building
growth
Total
10. The roads to be financed with an additional US$27.5 million under this component would be identified during the f i r s t year o f implementation. The investments will be focused in selected regions to support commercial agriculture around growth poles. Support to DFR will also include US$2.5 million for supervision o f construction (including supervision o f environmental and social safeguards).
47.5 2.5 0.5
50.5
Table 5: Improvement o f feeder roads
I Item I US$ million I
11. million): This component would finance support to:
Component F - Support to MOT and Other Transport Sector Entities (USN3.5
MOT to: (a) make the GRDA operational; (b) carry out studies on the development o f public-private partnerships in the transport sector; and (c) build i t s capacity in transport planning, procurement, financial, project, and safeguards management;
GACL to: (a) carry out detailed design, environmental and social studies for the adaptation o f Takoradi airport for civilian purposes; and (b) prepare a master plan for development o f regional airports;
GCAA to develop regulations for the aviation industry and carry out studies on aviation sector development;
GPHA to carry out a feasibility study for the dualization o f the Meridian Road in Tema;
GMA to carry out a feasibility study for the improvement o f transport on Volta Lake;
41
0 VLTC to carry out feasibility studies for the development o f landing stages and reception facilities along the Volta Lake; and
Capacity building and technical assistance to MOT
Detailed design and EMP/RAP for Takoradi airport, Master Plans (GACL) Aviation Industry regulations study (GCAA)
Feasibility Study to improve transportation on Volta Lake (GMA)
Feasibility for development of landing stages and reception facilities along the
Volta Lake (VLTC) Feasibility for dualization of Meridian Road in Tema (GPHA)
0 RMU to improve i t s training capacity to provide maritime training services for the West Africa Region.
Table 6: Support to MOT and Other Transport Sector Entities
4.0 2.0
1.5 1.5
3.0
0.5
I Item I US$ million I
Total 13.5
I Upgrading of Training Capacity (RMU) I 1.0 1
12. Component G - Project Management (US%8.3 million). This component would include support for provision o f technical assistance, vehicles, equipment and other operational support to the IAs to carry out the coordination, administration, monitoring, evaluation and audit o f the Project.
42
Annex 5: Project Cost
Ghana: Transport Sector Project (US$ million)
A
B
C
D
E
F F1 F2 F3 F4 F5 F6 F7
G
AgencyIActivity
Ministry of Roads and Highways (MRH) Integration of GIS of Road Agencies Organization of Development Partners’ Conference Preparation o f feasibility studies Capacity Building
Support to Road Sector and Educational Entities DVLA, NRSC, KNUST, GTTC Sub-Total Improvement of Trunk Roads Construction of Ayamfuri-Asawinso Road Supervision (including environmental and social safeguards) Capacity building and equipment
Sub-Total Improvement of Urban Roads and infrastructure Urban Transport Infrastructure Rehabilitation o f Burma Camp Road Rehabilitation of Giffard Road Capacity building Supervision (including environmental and social safeguards)
Sub-total
Sub-Total Improvement of Feeder Roads ImprovementIRehabilitation o f Feeder Roads Supervision (including environmental and social safeguards) Capacity building
Sub-total Sub-Total MRH, Department, Agencies & Entities M O T and Other Transport Sector Entities Support to MOT Support to GACL Support to GCAA Support to GMA Support to VLTC Support to GPHA support to RMU
Sub-Total
Sub-total Sub-total M O T and Other Transport Sector
Project Management
GRAND TOTAL*
43
Base Cost
0.4 0.2 2.5 1.1 4.2
6.5 6.5
41.5 2.5
2.5 46.5
16.5 26.5
9 0.5 3 .O
55.5
39.5 2.0
0.5 42.0
154.7
4.0 2.0 1.5 1.5 3.0 0.5 1 .o
13.5 8.3 8.3
21.8
176.5
Total Cost
0.4 0.2 2.5 1.1 4.2
6.5 6.5
58.5 3 .O
2.5 64.0
24.0 36.5 13.0 0.5 4.0
78.0
47.5 2.5
0.5 50.5
203.2
4.0 2.0 1.5 1.5 3.0 0.5 1 .o
13.5 8.3 8.3
21.8
225.0
Annex 6: Implementation Arrangements
Ghana: Transport Sector Project
1. The project will be implemented by Ministry o f Roads and Highways (MRH), which will have the overall responsibility for i t s coordination and management. The MRH will be responsible for preparing quarterly and annual reports in formats to be established and agreed upon in accordance with procurement and disbursement arrangements agreed between the Bank and the Government o f Ghana (GOG), with inputs from participating Ministries, Departments, and Agencies (MDAs) and beneficiary entities.
2. All components will be managed in l ine with Bank conditions and guidelines. In those areas where expertise i s lacking or not fully developed, short-term consulting specialists (management, engineering, procurement, financial management) will be employed to enhance performance and project implementation. The short-term specialists would be financed as part o f the capacity building component o f MRH and the Ministry o f Transport (MOT).
3. Implementation will be carried out on the basis o f an Annual Work Plan and Budget prepared by the MRH, with inputs from the Implementing Agencies (IAs) and Beneficiary Agencies (BAS). The IAs are: MRH including Department o f Urban Roads (DUR) and Department o f Feeder Roads (DFR), Ghana Highway Authorities (GHA), MOT, Ghana Airports Company Limited (GACL), Ghana Civil Aviation Authority (GCAA), Ghana Ports and Harbors Authority (GPHA); the BAS are: Driver and Vehicle Licensing Authority (DVLA), Kwame Nkrumah University o f Science and Technology (KNUST), Government Technical Training Center (GTTC), National Road Safety Commission (NRSC), Regional Maritime University (RMU), Ghana Maritime Authority (GMA), Volta Lake Transport Company (VLTC). The IAs will be involved in procurement o f goods, works, services, contract management and financial management, and safeguards management. In contrast, the BAS will be responsible for providing technical inputs for the IAs to carry out their respective components. The details on fiduciary responsibility and process flows under the project are provided in Table 1. A Project Implementation Manual (PIM) will be prepared by GOG for: (a) institutional coordination and day-to-day execution o f the project; (b) disbursement and financial management; (c) procurement; (d) environmental and social guidelines; (e) monitoring, evaluation, reporting and communication; and (9 such other administrative, financial, technical and organizational arrangements and procedures as may be required for the project.
4. and detailed as part o f the PIM.
To facilitate project implementation, following Committees and Groups will be set up
(a) A Project Steering Committee (PSC) as an inter-ministerial oversight body; (b) A Project Implementation Team (PIT) for coordinating implementation o f project
activities and reporting; (c) A Finance Management Team (FMT), as part o f the PIT, for the overall financial
management and reporting; and (d) A Procurement Team (PT), as part o f the PIT, with direct responsibility for
procurement activities and to provide quality control.
44
Project Steering Committee (PSC)
5. A PSC will be set up, chaired by the Chief Director, MRH, and comprising o f representatives o f the Ministry o f Finance and Economic Planning (MFEP), MOT, MRH, and the Heads o f the IAs. The PSC shall be responsible for, inter alia: (a) facilitating and coordinating project activities among the entities represented in the PSC; (b) approving Annual Work Plans and Budgets; and (c) reviewing annually or more if required, progress made towards achieving the project’s objectives.
Project Implementation Team (PIT)
6. A PIT will be constituted headed by the Director, Policy and Planning, MRH and comprise: (a) a PT consisting o f selected procurement staff from IAs; (b) an FMT consisting o f heads o f accounts o f IAs; (c) safeguard staff from the IAs; and (d) technical staff from IAs for project management and monitoring. The Team will be responsible for coordinating management and reporting o f all project related activities. Specifically, PIT will be responsible for, inter alia:
(a) facilitating and coordinating administration o f procurement, financial management, project management, safeguards and other implementation arrangements; and
(b) preparing and submitting quarterly and annual reports on all facets o f the project to GOG and the Bank.
Finance Management Team
7. To ensure proper coordination and effective financial management (FM) arrangement o f the project, and adhere to service standards on uniform reporting, meeting deadlines for submission o f payments vouchers, processing procedures etc., Heads o f Accounts o f the IAs have formed an FMT headed by the Director o f Finance (MRH). The Team will have responsibility with regards to ensuring compliance with financial covenants such as submitting interim unaudited financial reports (IFRs), and maintaining internal controls over project expenditure.
Procurement Team (PT)
8. A PT wi l l be set up, headed by Director o f Procurement (MRH) and made up o f procurement specialists from the IAs with sound knowledge o f Bank’s guidelines. The team would be the focal point for overall monitoring, evaluation, and reporting on procurement related activities.
45
Role of Ministries and Other Related Entities
(a) The project will be implemented by the Implementing Agencies", which are: MRH (including DUR and DFR), GHA, MOT, GACL, GCAA, and GPHA. The project will also benefit a number o f agencies and entities, including: DVLA, KNUST, GTTC, NRSC, M U , GMA, and VLTC. The BAS" will be responsible for providing technical inputs to the IAs for carrying out their respective parts o f the project. The detail on specific fiduciary responsibilities and process flows by the IAs and BAS i s listed in Table 1.
Role of the Bank
The Bank will monitor the procurement process and the progress o f the works and services throughout the duration o f the project;
The Bank will undertake regular meetings with the PIT to discuss general and specific issues in relation to the progress o f the project;
The Bank's in-country team will collaborate with the PIT to organize field trips and meetings with the implementing agencies to deal with specific issues arising during the implementation o f the project;
During a review mission, the Bank will endeavor to assist in resolving outstanding issues affecting progress o f the project; and
The Bank will advise the PIT on addressing issues to ensure that al l the project components are being executed according to the implementation plan.
Project Monitoring and Reporting
9. Reporting on the overall implementation o f the project will be the responsibility o f the PIT. However, each participating ministry, agency, and entity will be responsible for providing inputs on their respective components to PIT. The reporting will highlight issues that are obstructing smooth execution o f the various components o f the project. The quarterly project progress reports will cover civil works, consultancy services, institutional support, procurement, contract details, financial management reports, safeguard issues and project progress issues.
10. delays. The reports will be in accordance with the requirements o f the Bank's report format.
The report will comment on the implementation schedule in the areas o f progress and
lo The components to be implemented by the IAs are: A (MRH), C (GHA), F1 (MOT), F2 (GACL). F3 (GCAA), and F6 (GPHA)
MOT. The components B, D, and E will be implemented by MRH; components F4, F5, and F7 will be implemented by I 1
46
11. Meetings will be scheduled among the MDAs, entities and the PIT to discuss issues affecting the progress o f the project. The following reports will be prepared and consolidated by the PIT on a quarterly basis:
12. Financial Reports will consist o f sources o f funds, statement o f uses o f funds by project activity, project cash withdrawals, special account reconciliation statement and a six-month project cash forecast.
13. management and on unit o f output by project activity.
Project Progress Reports will consist o f an output monitoring report on contract
14. Procurement Management Report will consist o f procurement process monitoring for goods, works and consultant services, and contract expenditure reports for goods, works and consultants' services.
15. Quarterly progress reports will summarize activities o f work progress achieved in the last three months and submitted by the 30' o f the first month o f the following quarter. The quarterly report will be prepared by the PIT and cover the status o f each civil works contract, funds committed against budgets by project, and funds disbursed by projects. The quarterly reports will contain the detailed program activities for the next 12 months, updated at the end o f each quarter. The quarterly reports will be discussed by all the implementing agencies and matters arising treated accordingly.
16. Completion Report with assistance from the Bank.
PIT will lead the preparation o f mid-term review report and the Implementation
47
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Annex 7: Financial Management and Disbursement Arrangements
Ghana: Transport Sector Project
Introduction
1. In l ine with the guidelines as stated in the Financial Management Practices Manual issued by the Financial Management Sector Board on November 3, 2005, a financial management assessment o f the Ministry o f Roads and Highways (MRH) was conducted. The objective o f the assessment was to determine: (a) whether MRH has adequate , financial management arrangements to ensure that the project funds will be used for purposes intended in an efficient and economical way; (b) the project’s financial reports will be prepared in an accurate, reliable and timely manner; and (c) the entities’ assets will be safe guarded.
2. Unlike the recently closed IDA funded project - Road Sector Development Project (RSDP), the current project involves two ministries [MRH and the Ministry o f Transport (MOT)] and a number o f other agencies and entities. As a result, major departure will be in the design o f funds flow and accountability mechanisms. Under the proposed project there will be a single Designated Account managed and operated by the MRH using a central payment processing account. The rationale for this i s to ensure that MRH has adequate oversight and control over the use o f project funds and can effectively monitor budget implementation. The MOT, which i s also implementing the project, was created by the new government in January 2009 by merging the previous Ministries o f Aviation, and Rail and Harbors. In view o f the relative newness o f MOT, the responsibility for preparing quarterly and annual financial statements, maintenance o f internal financial controls, managing the Designated Account, preparing and authorizing withdrawal applications remain the responsibility o f MRH.
3. An assessment o f the financial management arrangements at the MRH concludes that there are systems in place that satisfy the Bank’s requirements under OPh3P10.02, and overall risk o f financial management arrangements i s rated as moderate.
Country Issues
4. Ghana’s fiduciary environment for utilizing both budgetary funds and donor funds i s considered adequate. The June 2007, External Review o f Public Financial Management (ERPFM) noted that the government continues to make encouraging progress in implementing i ts wide ranging program o f strengthening public financial management (PFM) through adoption o f the Short-Term and Medium-Term Action Plan. Budget formulation has been improved by revising the budget timetable to enable earlier tabling o f the estimates and thus the passage o f the Appropriations Bill prior to the start o f the new financial year, to facilitate a more orderly implementation o f spending plans. There i s now increased consultation with stakeholders in budget formulation, more comprehensive information in budget documents, and encouragement o f Ministries, Departments and Agencies (MDAs) to undertake procurement planning for use as basis for financial planning and budgeting.
51
5. Recent Public Financial Management (PFM) review notes the government’s continuing efforts to improve the commitment control system, to strengthen cash management, and to facilitate payments through decentralized treasuries. These actions a im at leading eventually to a Treasury Single Account, and to further implementation o f the Budget and Public Expenditure Management System. Key challenges remain in the predictability o f flows to Metropolitan, Municipal, and District Assemblies (MMDAs) and release by the Controller and Accountant General’s Department and these have an impact on the pace o f budget execution. Financial statements o f the Consolidated Fund and o f M D A s are current and audited, but delays continue with regard to public enterprises and other statutory bodies, as wel l as that o f other statutory funds. The Internal Audit Agency was established by the Internal Audit Agency Ac t 658, 2003 with the objective to co-ordinate, facilitate, and provide quality assurance for internal audit activities within MDAs and MMDAs.
6. Concerning external audit, the Ghana Audit Service (GAS) continues to show progress in clearing the backlog o f audits and submitting the audited annual accounts prior to the statutory deadline o f 30 June, with the final 2007 Consolidated Fund accounts completed o n time.
7. In sum, as part o f the overall public sector reforms, the Government o f Ghana (GOG) aims at strengthening central government structures and institutions by introducing programs to make them more efficient and effective through legislation and other reforms. Recent P F M laws including the Financial Administration Ac t 654 (2003), the Internal Audit Agency Act o f 2003 and the Public Procurement Ac t 663 (2003) have been enacted to help regulate the use o f public funds. GOG has also demonstrated i t s commitment to continue its PFM reforms by developing more efficient public financial management systems and ensuring transparency by strengthening state oversight institutions including the Public Accounts Committee o f Parliament which has recently been holding public hearings on instances o f financial irregularities and allegations o f fraud and corruption.
Project Financial Management
8. The primary executing agency for the project will be the MRH, which will coordinate activities o f the various Implementing Agencies (IAs) and Beneficiary Agencies (BAS) under the project (see paragraph 4, Annex 6 for a definition o f ‘IAs and BAS). To ensure proper coordination and effective financial management (FM) arrangements in the project, including adherence to service standards on uniform reporting, meeting deadlines for submission o f payments vouchers, processing procedures etc., a l l Heads o f Accounts o f the IAs have formed a Finance Management Team (FMT) headed by the Director o f Finance (MRH). The I A s will be responsible for contract management and implementation, while the respective ministries will undertake this task on behalf o f the BAS within their sub-sectors. The responsibility o f the FMT i s to ensure that throughout implementation there are adequate financial management systems in place which can report on the use o f project funds. MRH will be responsible for final verification and authorization o f payments for al l contracts and activities under this project, maintenance and operation o f the project’s designated account and making payments to contractors and service providers. As part o f the project financial management arrangement it has been agreed by al l IAs to adopt a centralized financial management arrangement under the MRH which will operate a single Designated Account.
52
9. The details on specific responsibilities for contract management, financial management, and disbursements are listed in Table 1 in Annex 6. The functions, responsibilities and mandate o f the FMT will be detailed in the Project Implementation Manual (PIM).
10. The justification for adopting this centralized payment processing system includes:
0 allowing MRH to have an oversight o f the budget and funding for the Transport Sector Project (TSP);
0 providing broader responsibility to MRH and FMT for coordination, contract management and disbursements;
0 preparing uniform reporting o f project activities and single interim unaudited financial reports (IFRs) and annual audit report for all components o f the project; and
0 strengthening reporting and coordination among the IAs and BAS involved in the TSP.
11. The assessment recognizes that the use o f a centralized single designated account may result in bureaucratic and other delays if the administration i s not well coordinated. However, i t i s expected that the regular meetings o f the PIT and FMT will help address any potential bottlenecks. The major challenge i s the ability o f the financial, management system at the MRH to track and report on various expenditures by the IAs and BAS. To help address this challenge the MRH i s currently far advanced with the procurement o f a suitable accounting software to help in accounting and reporting.
Project Risk Assessment and Mitigation
12. Table 1 below shows the results o f the risk assessment and identifies key risk mitigation measures. The risk assessment i s informed by the assessment o f the MRH and discussions with FMT.
Table 1: Risk Rating Summary Table
Risk
Country Level Weaknesses in the effective use o f public funds, weak oversight regarding transparency and accountability. Poor linkages between strategic planning and long term budgeting at the sector levels.
S
Risk Mitigating MeasureslKeniarks
I
Strengthening the role of the MMDAs in FM capacity building through ongoing reforms in the public financial management. This has resulted in a set o f new legislation to guide public frnancial management practices.
53
M
Risk
s
Country level risk as reported in the last Public Expenditure and Financial Accountability i s rated as C for internal control and as D+ for internal audit effectiveness,
As part o f the Implementation Agreement to be executed among all IAs, a Project Implementation Team and a Finance
Entity Level MRH may have challenges in effectively monitoring the activities o f other IAs and BAS to ensure compliance with the Financing Agreements.
I
Project Level Coordination among different MMDAs and other entities in financial management and reporting may be difficult to achieve. Challenges in complying with timelines for financial covenants such as submission o f financial reports including external audits.
Overall Inherent Risk Budgeting Risk o f cost overruns and adverse variations in expenditure due to poor budgeting techniques and slow implementation caused by inadequacy in predictability o f budget releases.
Accountability assessment i s at the country level as a result o f issues with internal control in districts and regions. However, this project i s being implemented at the central government level and over 90 percent o f the credit i s being implemented by MRH, which has satisfactorily implemented the recently closed RSDP. The FM assessment o f the Ministry and i t s agencies, GHA, DUR, and DFR i s rated as satisfactory.
S To address and minimize this risk, the project has set up a PIT, PT and FMT to support implementation. As part o f the capacity building component, technical assistance wi l l be provided to strengthen both human and technical capacity in the ministry.
The P I M and the Implementation Agreement wi l l provide guidelines on roles and responsibilities o f various agencies and units.
The Director o f Finance (MRH) working with the PIT wi l l be responsible for overall F M monitoring and reporting.
S
S Budget execution to be monitored through quarterly reports and IFRs by IDA. In addition the FMT wi l l monitor budget execution and implementation to help control any adverse variations and delays in budget execution.
M
M
M
M
M
54
Risk
Risk associated with delays in budget execution due to weaknesses in preparing procurement plans, annual work plans.
Accounting Accounting and reporting challenges due to the project having different IAsiBAs where expenditure w i l l be initiated and incurred.
Internal Controls Inadequacy o f controls in the preparation and approval o f transactions, payments, cash and bank transactions.
Risk o f non compliance to internal control processes.
Possibility o f weaknesses in governance and anti- corruption systems (transparency in processes) particularly in procurement and contract awardinglexecution.
Funds Flow Delays in processing withdrawal applications. Delays in payment processing due to verification by MRH o f expenditure incurred by IAs and BAS.
Financial Report ing Delays in processing and submitting IFRs and other
S
S
M
S
Risk Mitigating Measures/Remarks
The detailed procurement plans for the fust year work have been finalized in discussions with the Bank, bidding documents have been prepared, reducing the potential impact o f delays in work execution.
The use o f a central accounting and reporting function at the MRH wi l l help in streamlining the preparation o f accounts and other reports; during the first year capacity o f the IAs w i l l be strengthened in financial management and procurement.
Al l IAs and BAS have their internal control processes guided by the Financial Administration Act (FAA) and Financial Administration Regulation (FAR). These GOG financial regulations and manuals are adequate for operational control and they document the approval and authorization hierarchies applicable for processing financial transactions. The MRH has a functioning Internal Audit Department.
Regular IDA supervision missions and reviews w i l l help ascertain level o f compliance and identify any possible GAC weaknesses.
P IT oversight and the use o f Bank’s procurement and fiduciary compliance procedures w i l l help to minimize corruption risk.
This risk i s minimized through the use o f a central payment processing unit at MRH. Also, staff in MRH have satisfactorily managed IDA projects and are familiar wi th processes for disbursement.
MRH w i l l be responsible for coordinating and preparing financial reports on behalf o f
M
M
M
M
55
Risk
financial monitoring reports. Delays in complying with submission deadlines as per Finance Agreements.
Auditing The risk that audits will not be submitted on time to ensure compliance with covenants.
Overall Risk Rating
S
S
Risk Mitigating Measures/Remarks
all IAs and BAS and submitting them to IDA.
The TOR for engagement will be reviewed and cleared by the fiduciary team o f the Bank to guarantee that the scope of works i s satisfactory. Continuous engagement by the IDA’S FM specialist with the Director of Finance (MRH) will follow up on the accounting through the audit program.
M
M
H - High S - Substantial M - Moderate L - Low
Strengths and weaknesses o f the Financial Management System
Strengths
13. The project financial management i s strengthened primarily by the involvement and experience o f the accounting staff o f departments under the MRH in earlier and ongoing IDA funded projects. The Ghana Highway Authority (GHA), Department o f Feeder Roads (DFR) and Department o f Urban Roads (DUR) have also been involved in Road Sector Development Program, the Urban Transport Project, and West Africa Transport and Transit Facilitation Project. Personnel o f these IAs have benefited from regular training in bank fiduciary procedures and are familiar with IDA financial management and procurement procedures and this will help ensure smooth implementation.
14. Under the RSDP, part o f the financial management function o f the IAs were mainstreamed with the establishment o f the Roads Project’s Office and over time has led to a pool o f skilled staff and the development o f a reliable accounting and internal control system capable o f recording and reporting accurate project expenditure. During the RSDP, the GHA, DFR, and DUR satisfactorily operated separate designated accounts.
Weaknesses
15. The project design i s complex due to the number o f MMDAs involved, and this can have a potential bearing on financial management. The most likely weakness in financial management will be challenges in collaboration and coordination among the IAs and BAS and the MRH since the project will be relying on MRH for processing o f all payments transactions. In addition, since
56
transaction initiation, authorizations and approval will be primarily at the implementing agency level there i s the need for strong internal controls and oversight to prevent any possible lapses or potential fraud and corruption. It i s to address these potential weaknesses that the project has in place implementation arrangements including the PIT, Procurement Team (PT) and the FMT.
Time Bound Action Plan
16. weaknesses that have been identified to ensure the FM system i s robust and strengthened.
The action plan below indicates the actions to be taken for the project to address the
Table 2: Action Plan
17. follows:
A summary o f the key finding o f the financial management assessment i s presented as
Budgeting Arrangements
18. The MRH and MOT as government ministries follow the budget preparation guidelines as per the Financial Administration Act, 2003 (Act 654), the Financial Administration Regulation, 2004 (LI1802) and also the annual budget guidelines issued by the Ministry o f Finance and Economic Planning (MOFEP), The budget for the project will be prepared by the Planning and Policy unit o f the MRH in conjunction with the IAs. The budget i s part o f the overall Transport Sector Development Plan (2008-20 12) agreed between the government and donor partners.
19. The assessment indicates that budgeting processes at the MDA level are satisfactory and can be relied upon to reflect the various components to be implemented by the different agencies The current budgetary control processes used mostly for the government’s discretionary budget, which are being adopted to support project implementation are capable o f monitoring commitments and outstanding balances and this helps to reduce risk o f multiple payments and expenditure overruns.
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Accounting Arrangements
20. The director o f finance at the MRH will be responsible for overall fiduciary aspects o f the project. The director, a staff o f the Controller and Accountant General’s department, i s a qualified chartered accountant and involved in donor funded operations. In addition the Finance and Accounting Department o f MRH has a dedicated unit handling donor funded project activities; the unit i s headed by a project accountant and supported by two officers who report to the Director o f Finance. The staff has had relevant experience during the implementation o f the RSDP and other IDA financed projects and are familiar with IDA policies and procedures.
21. The technical capacity o f accounting staff and work load challenges o f the MRH will be regularly assessed by the Bank during project implementation and if necessary the staff wil l be provided with training to update their skills and mitigate any skills gaps.
Information Systems
22. The assessment o f the Finance and Accounting Department o f the MRH indicated that currently accounting and financial reporting i s done using a combination o f manual processing and spreadsheets. This may pose a challenge during implementation since the accounting and information systems should be robust enough to report on the different IAs, expenditure by categories and different components. To address this weakness, the MRH has initiated the process for installing suitable software that will be used by al l departments and agencies under the ministry. The Bank has been involved in providing technical assistance in the design and implementation o f this software.
Internal Control and Internal Auditing
23. The project’s internal controls will to a large extent rely on the government established accounting and internal control guidelines as documented in the respective Internal Audit Manuals o f the ministries. The internal audit functions o f al l M D A s are informed by the Internal Audit Agency Act, 2003 (Act 658). The credibility o f the project’s internal controls and general control environment including responsibilities for approvals and authorization processes for recording and safe-guarding o f assets will be in line with the GOG guidelines as documented in the Financial Administration Act (FAA) and the Financial Administration Regulation (FAR). In addition, the internal controls will be further strengthened and complimented by compliance to the guidelines o f the project implementation manual (PIM). The MRH has a functioning internal audit unit which helps to ensure a sound control environment for transaction processing and enforcing compliance. The mandate o f the internal audit unit includes auditing discretionary budget funds, internal generated funds and donor funded activities. The Bank’s assessment notes that even though expenditure initiation i s at the IA and BA levels, these agencies are guided by procedures documented in the FAA and FAR which clearly spell out the roles and responsibilities within the agencies. To further ensure compliance, the internal audit unit at the MRH will also be part o f the control processes for verifying payment request from the I A s and BAS prior to payments by the Director o f Finance o f the MRH.
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24. The assessment indicates that the internal audit and control environment at MRH i s adequate for project implementation. The role o f the internal audit unit at MRH will be regularly assessed during supervision missions by reviewing their reports and management responsiveness to their findings. It has been agreed that the periodic supervision reviews by the internal audit unit will cover the project activities and their findings shared and discussed with the Bank.
Funds Flow Arrangements
25. The proposed arrangement is to use a single Designated Account (denominated in U S dollars) managed and operated by the Chief Director, MRH who will be assisted by Director o f Finance, MRH in preparing and submitting acceptable withdrawal applications. *
26. This arrangement to use a central account is important to ensure that the MRH has oversight responsibility over al l the transfers and payments related to the implementation o f project activities. However, in order to facilitate payment o f some small expenditure, the MOT, GHA, DUR, DFR will operate “Project Accounts” on an imprest system. The ceiling for the imprest will not exceed US$0.2 mi l l ion (or the cedi equivalent) and will be monitored and reported o n by the Director o f Finance at MRH. These funds will be released in the form o f an imprest account and subsequently replenished, and used for specific expenditure such as supervision, f ield visits, operating costs, etc. The procedures and modalities for operating the designated account and the types o f expenditure to be paid out o f project accounts will be outlined in the P I M and reflected in the Implementation Agreement.
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Figure 1: Funds Flow Arrangement
................................................................... .............................................................................. Designated Account @A)
i ................. j .......................... ............................................. * ......................... Funds Flow
....................... Reporting
Notes: i. There will be only one Designated Account maintained by the Ministry of Roads and Highways ii. The MOT, GHA, DFR, and DUR will each operate an imprest accounts referred to as ‘Project Account’ for
payment o f small value local expenses. These project accounts will be run on an imprest based arrangements with a maximum ceiling of US$0.2 million (or the cedi equivalent).
iii. The MRH will be responsible for payments from the Designated Account on behalf o f the MOT and al l other IAs.
27. Disbursement arrangements agreed during appraisal with the Borrower are summarized below.
Borrower and credit amount. This operation i s an IDA Credit o f US$225 million.
28. The project will use transaction Statement o f Expenses (SOE) based disbursements for reporting on the uses o f project funds and for withdrawals for subsequent funds. The initial disbursement and the ceiling o f the Designated Account will be based on the aggregate expenditure forecast for the f i rst three months. Subsequent withdrawals will be made on submission o f satisfactory SOE returns plus a forecast o f expenditure and cash flow needs for the next three months. It i s likely that the f i rs t year budget and disbursement will be low and may not reflect actual forecast o f fund utilization throughout implementation. To address this, there i s a clause in the Disbursement Letter for a review o f the ceiling during implementation.
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29. Disbursement arrangements and use o f funds. Disbursement o f the proceeds o f the financing will fo l low standard Bank procedures for investment lending, for use by the Borrower for eligible expenditures as defined in the Financing Agreement and the Annual Work Plans and Budgets. Disbursement arrangements have been designed in consultation with the Borrower after taking into consideration the assessments o f Borrower’s financial management and procurement arrangements, the procurement plan, cash f low needs o f the operation and the Borrower’s prior disbursement experience. Additional instructions for disbursements will be provided in a disbursement letter issued for this project.
30. Disbursement methods. This credit will be disbursed through various disbursement methods, including advances, direct payments and special commitments. Advances will be disbursed into a single Designated Account, to be managed by the MRH. The Designated Account will be denominated in U S Dollars and will be segregated from other financing partners.
3 1. Reporting on use of Financing. Supporting documentation will be requested along with withdrawal applications as specified in the disbursement letter. This will comprise summary reports by category and details o f transactions (Statement o f Expenses returns) for payments made by the Borrower f rom the Designated Account. Copies o f original documents or records will be requested only for certain categories o f expenditure above financial thresholds specified in the disbursement letter.
Financial Reporting Arrangements
32. The Director o f Finance at MRH i s responsible for generating quarterly Interim Unaudited Financial Reports (IFRs). Financial reporting under the project will be transactions based and the MRH will maintain adequate filing and archival system o f al l relevant supporting documents for review by the Bank during supervision missions and also for audit purposes. IFRs for the project are expected to be submitted not latter than 45 days after the end o f each quarter. The financial reports will be designed to provide relevant and timely information to the project management, IAs, and various stakeholders monitoring the project’s performance.
Auditing
33. al l the the
The Auditor General (Ghana Audit Service) i s primarily responsible for the auditing o f government and donor funded projects. However, due to capacity constraints, i t is usual for auditor general to subcontract the audit o f donor funded projects to private f i rms. Under TSP, MRH would be responsible for auditing in liaison with the Auditor General, subject to the
Bank’s necessary procurement and technical clearance o f the terms o f reference (TOR) for the engagement o f an audit firm. The Director o f Finance at the MRH i s responsible for ensuring that the project funds are audited on time and the audit report submitted to IDA as per the financing covenants stated in the Finance Agreement. To ensure compliance, i t has been agreed that external auditors must be recruited not latter than six months after project effectiveness.
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Conclusion o f the Assessment
34. financial management risk i s rated as moderate.
The financial management arrangements as assessed show concluded that the project’s
Supervision Plan
34. Based on risk rating o f the project and the current financial management arrangement it i s planned that in the first year o f implementation there will be one onsite visit to ascertain adequacy o f systems supplemented by desk reviews o f IFR and audit report. The financial management supervision mission’s objectives will include ensuring that strong financial management systems are maintained for the project throughout project tenure. In adopting a risk based approach to financial management supervision, the key r isk areas o f focus will include assessing the accuracy and reasonableness o f budgets, their predictability and budget execution, compliance with payment and fund disbursement arrangements and adherence to internal controls, and assessing the continuing ability o f the MRH to effectively to generate credible reports. The contract and financial management arrangements agreed as part o f the PIM will be reassessed during mid-term review (MTR).
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Annex 8: Procurement Arrangements
Ghana: Transport Sector Project
A. General 1. Procurement o f goods and works and selection o f consultants will be carried out in accordance with (i) the World Bank’s “Guidelines: Procurement under IBRD Loans and IDA Credits ” dated May 2004, revised in October 2006; (ii) “Guidelines: Selection and Employment of Consultants by World Bank Borrowers ” dated May 2004, revised in October 2006; and (iii) the provisions stipulated in the Financing Agreement. The various items under different expenditure categories to be financed are described below. For each contract to be financed by the Credit, the different procurement methods or consultant selection methods, the need for pre- qualification, estimated costs, prior review requirements, and time frame are agreed between the government and the Bank project team in the Procurement Plan. The Procurement Plan will be updated at least annually or as required to reflect the actual project implementation needs and improvements in institutional capacity.
2. Procurement o f Works: A total o f about US%175.0 million o f works would be procured under this project. These would include rehabilitation o f the Ayamfuri-Asawinso trunk road, construction o f Burma Camp and Giffard Road in Accra rehabilitatiodimprovement o f selected feeder roads, the development o f vehicle testing grounds, and construction o f educational facilities including offices, libraries, transportation laboratory, classrooms, and workshops.
3. The procurement will be done using the Bank’s Standard Bidding Documents (SBD) for a l l International Competitive Bidding (ICB) and for al l others, National SBD’s as agreed with or satisfactory to the Bank. Contracts below US$5,000,000 but equal to or above US$lOO,OOO equivalent per contract will be procured under National Competitive Bidding (NCB). In spite of this, relevant N C B works contracts, which are deemed complex and/or have significant risk levels will be prior-reviewed and such contracts will be identified in the tables and also in the procurement plans. Again, under NCB, it shall be ensured that: a) foreign bidders shall be allowed to participate in National Competitive Bidding procedures; (b) bidders shall be given at least one month to submit bids from the date o f the invitation to bid or the date o f availability o f bidding documents, whichever i s later; (c) no domestic preference shall be given for domestic bidders for works; and ’(d) in accordance with paragraph l.l4(e) o f the Procurement Guidelines, each bidding document and contract financed out o f the proceeds o f the Financing shall provide that: (i) the bidders, suppliers, contractors and subcontractors shall permit the Association, at its request, to inspect their accounts and records relating to the bid submission and performance o f the contract, and to have said accounts and records audited by auditors appointed by the Association; and (ii) the deliberate and material violation by the bidder, supplier, contractor or subcontractor o f such provision may account to an obstructive practice as defined in paragraph l.l4(a)(v) o f the Procurement Guidelines. Contracts estimated to cost less than US$lOO,OOO equivalent per contract would be procured using shopping procedures based o n a model request for quotations satisfactory to the Bank. Direct contracting may be used where necessary, but will be subject to Bank’s no objection.
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4. Procurement of Goods: A total o f about US$7.4 million o f goods would be procured under this project. These would include axle weighing equipment, vehicles, computers, printers, and facilities for emergency response services to support road safety activities. The procurement will be done using the Bank’s SBD for all ICB and National SBD agreed with or satisfactory to the Bank. Contracts below US$500,000 but equal to or above US$50,000 equivalent per contract may be procured under NCB. In spite o f this, relevant NCB goods contracts, which are deemed complex and/or have significant risk levels, will be prior-reviewed; such contracts will be identified in the tables and also in the procurement plans. Again, under NCB, it shall be ensured that: a) foreign bidders shall be allowed to participate in National Competitive Bidding procedures; (b) bidders shall be given at least one month to submit bids from the date o f the invitation to bid or the date o f availability o f bidding documents, whichever i s later; (c) no domestic preference shall be given for domestic bidders and for domestically manufactured goods; and (d) in accordance with paragraph 1.14(e) o f the Procurement Guidelines, each bidding document and contract financed out o f the proceeds o f the Financing shall provide that: (a) the bidders, suppliers, contractors and sub-contractors shall permit the Association, at i t s request, to inspect their accounts and records relating to the bid submission and performance o f the contract, and to have said accounts and records audited by auditors appointed by the Association; and (b) the deliberate and material violation by the bidder, supplier, contractor or subcontractor o f such provision may account to an obstructive practice as defined in paragraph 1.14(a)(v) o f the Procurement Guidelines. Contracts estimated to cost less than US$50,000 equivalent per contract would be procured using shopping procedures based on a model request for quotations satisfactory to the Bank. Direct contracting may be used where necessary, subject to Bank’s no objection.
5. Procurement of Non-Consulting Services: Procurement o f non-consulting services wi l l follow procurement procedures similar to those stipulated for the procurement o f goods, depending on their nature. The applicable methods wi l l include NCB and shopping.
6. Selection of Consultants: Consultancy services valued at about US$24 million would be provided under the project and includes the following categories: financial, technical and procurement audits, economic feasibility and design studies, supervision o f construction works, institutional studies, monitoring and evaluation studies and technical assistance to the implementing ministries and agencies.
7. Contracts for consulting services, each estimated to cost US$l 00,000 equivalent or more, will be awarded following the procedure o f Quality and Cost Based Selection (QCBS). Consulting services estimated to cost less than US$lOO,OOO per contract under this project would be procured following the procedures o f Selection Based on Consultants’ Qualifications (CQS). Selections under Fixed Budget Selection (FBS) and Least Cost Selection (LCS) methods wi l l be applied in the circumstances as respectively described under paragraphs 3.5 and 3.6 o f the Consultants Guidelines. For all contracts to be awarded following QCBS, LCS, and FBS the Bank’s Standard Request for Proposals will be used. Procedures o f Selection o f Individual Consultants (IC) would be followed for assignments which meet the requirements o f paragraph 5.1 and 5.3 o f the Consultant Guidelines. LCS procedures would be used for assignments for selecting the auditors. Single-Source Selection (SSS) procedures would be followed for
64
assignments which meet the requirements o f paragraphs 3.10-3.12 o f the Consultant Guidelines and will always require the Bank’s prior review regardless o f the amount.
8. Short l is ts o f consultants for services estimated to cost less than US$200,000 equivalent per contract may be composed entirely o f national consultants in accordance with the provisions o f paragraph 2.7 o f the Consultant Guidelines. Consultancy services estimated to cost above US$200,000 per contract for firms, and contracts for individuals for assignments estimated to cost above US$lOO,OOO and single source selection o f consultants (firms and individuals) will be subject to prior review by the Bank.
9. Capacity Building and Training Programs, Conferences, Workshops, etc.: A total amount o f US$4.6 million would be provided for these activities which will be geared towards building capacity and improving management and staff skills within the ministries and agencies. All training and workshops will be carried out on the basis o f the project’s Annual Work Plans and Budget which will have been approved by the Bank on a yearly basis, and which will, inter alia, identify, (a) the training and workshop envisaged, (b) the personnel to be trained, (c) the institutions which will conduct the training, and (d) duration o f the proposed training.
10. The procurement procedures and SBDs to be used for each procurement method, as well as model contracts for works and goods procured will be presented in the Project Implementation Manual (PIM).
B. Assessment of the Capacity of the Ministry of Roads and Highways (MRH), Ministry of Transport (MOT) and their Departments and Agencies to Implement Procurement
11. Under Ghana’s Public Procurement Law, the MRH, departments and related agencies, Le., Ghana Highways Authority (GHA), Department o f Urban Roads (DUR), Department o f Feeder Roads (DFR), Driver and Vehicle Licensing Authority (DVLA) and National Road Safety Commission (NRSC) are procurement entities. Also recognized as procurement entities are the Kwame N h m a h University o f Science and Technology (KNUST) and Ghana Technical Training Centre (GTTC) which are project beneficiaries linked to the MRH. In a similar manner, the Ministry o f Transport and related entities, i.e., Ghana Civil Aviation Authority (GCAA), Ghana Airports Company Ltd (GACL), Ghana Ports and Harbors Authority (GPHA), Regional Maritime University (RMU), Ghana Maritime Authority (GMA), Ghana Shippers Council and Volta Lake Transport Company (VLTC) are also procurement entities. Therefore, these two Ministries and other participating beneficiary entities, like GTTC and KNUST have legal responsibilities in Ghana to undertake procurement on their own. However, given the inexperience o f the Beneficiary Agencies (BAS) in working directly with the Bank’s procurement guidelines and procedures, i t has been agreed that the Procurement Team within the Project Implementation Team (PIT) will be undertaking procurement for Bank financed components. As part o f the project, capacity o f the BAS will be strengthened in procurement o f goods, works, and services and this arrangement will be revisited during the mid-term review.
12. For the above reason, an assessment o f the capacities o f the two Ministries and other implementing agencies (IAs) to implement procurement actions for the Transport Sector Project
65
(TSP) was carried out by the Bank procurement specialists in January 2009. The assessment reviewed the organizational structure for implementing the project and the interaction between the I A s and their staff responsible for procurement and relevant central unit for administration and finance.
13. The assessment established that the ministries and other IAs (a) were responding to Ghana’s Public Procurement Law; (b) had entity tender committees and review boards in their permanent organizations; (c) had adequate internal technical and administrative controls and anti-corruption procedures; and (d) had satisfactory appeal mechanisms for bidders. Following this, the capacities o f these agencies to implement procurement under Bank’s Guidelines and procedures were determined as below.
Ministry of Roads and Highwavs (MRH) and Related Implementing Agencies:
14. The assessment showed that MRH, GHA, DUR and DFR have handled Bank projects in the last six years under the RSDP and have, as institutions, gained significant experience to handle procurement under the project. In GHA, the departments o f (a) planning, (b) contracts, and (c) stores and plant and equipment have respective responsibilities for the conduct o f procurement for services, works and goods. The respective responsibilities are assigned to the departments, and no one individual has dedicated responsibility in each case. In DFR, the Chief Quantity Surveyor has additional responsibility for procurement; the same applies to the DUR where officers responsible for other schedules have been assigned additional responsibility for procurement. In effect, focal persons with dedicated responsibility for procurement are missing in these agencies. For these reasons, there have been quality assurance issues that have caused delays sometimes in project implementation. Further, the capacities o f KNUST and GTTC , which are project beneficiaries, were found to be inadequate. Again, the capacities o f DVLA and NRSC to handle Bank procurement procedures were also found to be inadequate because they only participated in relatively few and simple procurement activities, using the Bank’s procedures and guidelines. Based on the above assessment, each o f the I A s will be responsible for procurement under their own components, while MRH and M O T will handle procurement for the BAS with the technical input o f the BAS.
15. In addition, given that the work load on the Ministry and the other IAs continue to increase, without a corresponding increase in the delivery o f efficient procurement for goods, services and works, under the Bank’s Guidelines, the quality o f procurement has been affected over the last few years. To strengthen the capacity o f the ministries and agencies, the fol lowing mitigations actions were identified.
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Table 1: Mitigation Actions for MRH
By Whom Procurement Team under supervision of the Project Implementation Team. Procurement Team under supervision of the Project Implementation
No 1 Key risks 1 I Lack of relevant
By When After project effectiveness.
After project effectiveness.
2
experience of KNUST, GTTC to undertake procurement under Bank’s Guidelines. Limited experience of DVLA and NRSC to conduct procurement under Bank’s Guidelines.
Mitigation Actions Procurement will be undertaken on behalf of KNUST and GTTC by MRH. The actions will include guidance and coaching. Procurement by NRSC and DVLA will be guided and supported by MRH.
Ministry of Transuort (MOT) and Related Imdementinn Agencies:
16. The assessment o f the MOT and other related IAs (GPHA, GCAA, and GACL) identified that MOT i tse l f has limited capacity and experience in procurement using the Bank’s Guidelines. In contrast, GCAA and GACL have relatively strong procurement units headed by qualified procurement staff who have also been trained in the use o f the Bank’s procurement procedures at Ghana Institute o f Management and Public Administration (GIMPA). This observation also applies to GPHA, which i s currently participating in the implementation o f the West Africa Trade and Transport Facilitation Project (WATTFP). Further, the BAS (MU, GMA, and VLTC) also have limited or no experience in the use o f Bank’s Guidelines. Based on the procurement assessment, GCAA, GACL and GPHA will undertake their own procurement, while the MOT will undertake both its own procurement and procurement for the BAS (with support from the Procurement Team) subject to the risk assessment and mitigation measures below.
17. To strengthen the procurement arrangements and improve quality control, MRH and MOT have agreed to take advantage o f the overall project coordination role assigned to the MRH. A Procurement Team i s being set up as part o f the PIT (for details see paragraph 5 in Annex 6) to coordinate the work o f different ministries and entities and provide quality control for al l procurement related activities.
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Table 2: Mitigation Actions for MOT
Specialist td bffer support to the Ministry and, in addition, build capacity and provide first line support, in Bank procedures, to officers selected from the Beneficiary Agencies. During the initial years, while the capacity in MOT and other entities i s being strengthened, support will be provided by the Procurement Team.
- No 1
- 2
- 3
For procurement quality enhancement, there i s need for the Ministries and their agencies to appoint and or designate qualified staff or focal persons to be dedicated to the conduct of procurement in the agencies. The Ministry and the Bank will ensure that provision i s made to cater for necessary logistics to support the PT.
Key risks The issue o f MOT, RMU, GMA and VLTC having limited or no experience in procurement using the Bank’s Guidelines.
MRH, MOT and their Agencies
MOT and MRH
Inadequate number of qualified and dedicated staff for procurement in the Ministr ies and Agencies.
Lack o f resources to undertake the critical responsibility assigned.
Mitigation Actions MOT will appoint a Procurement
By Whom MOT
By When Within three months of project effectiveness.
Within three months after project effectiveness.
Before effectiveness, to be identified in the PIM.
18. The Procurement Team (PT) will be composed o f selected procurement focal persons drawn from the Ministries and their Agencies with sound knowledge o f the Bank’s guidelines and relevant experience in procurement o f goods, works and services. The Director o f Procurement o f MRH will coordinate the activities o f the Procurement Unit and receive procurement processed documents from agencies’ and departments’ procurement focal persons. He/She will, in addition, be the contact person for all Bank related procurement issues, and will ensure that al l contracts are awarded and signed by officials o f the relevant Ministries, unless this responsibility is delegated. The terms o f reference o f the PT will be detailed out in the PIM.
19. Further, to enhance and build the capacities o f the Procurement Unit and the other procurement focal officers, it was agreed that MRH would work with GIMPA to develop an appropriate training program, which will involve Bank procurement specialists. The program will aim at preparing staff selected from the two Ministries and their agencies, in the medium to long term, to effectively manage goods, works and services procurement in al l donor-funded projects.
20. The assessment also reviewed key procurement processing areas subject to delays o n both the Bank and the Borrower sides, by comparing the standard time frame for the conduct o f procurement for services, and also for goods and works as identified in the procurement plans formats, with the corresponding estimated time frames that practically arise from the required ‘internal processes that have become necessary in order to respond to the Public Procurement Law. The procurement processing experience o f the DFR, an IA, was used as the benchmark in identifying the areas o f delays and bottlenecks, with a v iew to recommending mitigation measures.
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21. For services, i t was found that delays occurred in: (a) preparing request for proposals (RFPs), (b) advertising and evaluating / assessing expression o f interests (EOIs) for shortlists, (c) evaluating technical proposals, and (d) awarding contracts. For goods and works, the delays occurred in: (a) the preparation o f bidding documents, (b) bid evaluations, and (c) contract award. Two other areas that contribute to delays were identified as: (a) lack o f relevant procurement delivery capacity, and (b) the assumption that implementation o f the procurement plans would follow the logic o f the sequential steps, whereas it i s significantly affected by the competing demands o f time for implementation o f other activities. The key delays identified in the critical areas and mitigation measures and/or actions are identified below:
69
E
,- 2 k 0
0
E
CI 0 E: 0 +2 kk $ 2 3
ob .- 2 S
%I I*%
- lm
k
k
3
t4 m B -0
N m
b
N
C. Procurement Plan
22. The government, at appraisal, drafted a 12-month procurement plan for project implementation which provides the basis for the procurement methods. This plan was concluded and agreed on by the government and the project team at negotiations. It will also be available in the project's database and in the Bank's external website. The Procurement Plan will be updated in agreement with the Project Team annually or as required to reflect the actual project implementation needs and improvements in institutional capacity.
Table 4: Thresholds for Procurement Methods and Prior Review I , , Contract Value I
Expenditure ~
l Category ~
N o Threshold** (US$) . . ." ". i_ . _" 1.- _I__" .~ --I-.
I I >=5,000,000 ! ,
1 .._____...I__.----..-"- I I 100,000 =<C=<5,000,000
1 , Works I I
~
Goods and Services (other than
Services Consulting
2
3 ;
c<100,000
All values
C>=500,000
." ....l_.-.I.-... -- -I--- .
: Al lvalues 1 ,- . . .. . I .. .. . ._ - . .. .
Procurement ' Contracts Subject to Prior M e t h o d Review (US$ )
I
ICB ! Al lcontracts
NCB 3 Specified contracts as wou ld be indicated in the ' Procurement Plans
Shopping
Direct Contracting
ICB
NCB UN Agencies (UNOPS)
t None
All Contracts
._ All Contracts
".# ___ I__ - --- -- Specified contracts as w o u l d
i be indicated in the I
Procurement Plans I I
Shopping 1 None
Direct \ All Contracts Contracting QCBS , All Contracts
I (International) Consu l t i ng c>= 200,000 firms Services
I 1 . .
c<100,000 I
' CQS __ .
__ - - - 3 _I_ - C>=50,000 individuals 1 All contracts
IC -" - - -
C < 50,000 individuals TOR IC
72
I -r - _- I - ~ - I_ ~ - - ----, __ - __ - - - __ - , I ingle sou r ie -TA iCon t ra&
All Values I Selection i ~ - - - - - __I_ - - __ _--llI___I_ _I I_I_- - - - 4 - __I___--___ -I- - - -
Training, I i To be based on 4 ~ Workshops, A l l Values i Annual Work
, I I_I - ’ Plan & Budgets ~ - - I _I - 1 - , Study Tours
_-I - - **These thresholds are for the purposes o f the initial procurement plan. The thresholds wi l l be revised periodically based on re-assessment o f risks.
No*
1
D. Frequency of Procurement Supervision
Domestic Review by Expected Bid
Bank Opening (yesho) (Priodpost) P-Q Preference Estimated Procurement cost
(%Million) Date Method
Contract (Description)
Rehabilitation o f Ayamfuri-Asawinso 60.5 ICB Yes Yes Prior 09/28/2009 Road
Construction o f 37.5 ICB Yes Yes Prior 09/17/2009
23. In addition to the prior review supervision to be carried out from Bank offices, the capacity assessment o f the IA has recommended three supervision missions each year to visit the field to carry out post review o f procurement actions. The procurement post-reviews should cover at least 20 percent o f contracts subject to post-review. In addition, post reviews o f in- country training wi l l be conducted from time to time to review the selection o f institutions/ facilitators/ course contents o f training, and justifications thereof, and costs incurred.
4
E. Details o f the Procurement Arrangements Involving International Competition
Construction o f bus terminals, depot, 25.0 ICB Yes Yes Prior 041 19/20 10 tributaries facilities
24. Works, Goods and Non Consulting Services (a) L is t o f contract packages to be procured following ICB and direct contracting:
Table 5: Works
(b) ICB works contracts estimated to cost US$5 million and above per contract and all direct contracting wi l l be subject to prior review by the Bank.
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Table 6: Goods
No' Estimated Procurement cost ($Million) Method
Contract (Description) P-Q
Expected
Opening Date
Domestic Review by Bid Preference Bank (yedno) (F'rior/post)
1.14 1 ICB
1. MRH and agencies: 2.00 ICB Vehicles
No 1 No 1 Prior Various,
11/23/2009 starting
Various,
09/24/2009 1
DFR: Supply o f 40D-Cabin 4WD Pick-Ups
Prior 1 09/17/2009 I No No
2
3
4 No 1 NO 1 Prior ~ 07/13/2009
Axle Load Weighing 1 .oo ICB Machine MOTJagencies and entities: 2.00 ICB Vehicles GCAA: 2 VHF Direction Finders for 0.60 ICB Accra & Tamale Airports
(c) ICB goods contracts estimated to cost US$500,000 and above per contract and all direct contracting will be subject to prior review by the Bank.
No 1 No 1 Prior
25. Consulting Services (a) List o f consulting assignments with short-list o f international f i rms.
09/24/2009
Table 7: Consulting Services
1 2
No.
3 4 5 6 Review by Expected
Proposals Selection Bank (Prior Method
Estimated
($ million) /Post) submission Date Description of Services cost
Baseline and monitoring studies o f I 1 TSDP
1.5 Financial, Technical and I procurement audit o f TSDP
0.7 I QCBS 1 Prior 1 09/28/2009 1 QCBS Prior 12/15/2009
.
3
4
6
Integration o f Geographical Information Systems (GIS) o f road 0.4 QCBS Prior 09/02/2009 Agencies Develop regulations for the aviation industry and studies on aviation 1.5 QCBS Prior 11/14/2009 sector development Institutional studies to operationalize GRDA Feasibility study for the improvement o f transport on the 1.5 QCBS Prior 11/23/2009 Volta lake
1.5 QCBS Prior TBD
74
I Feasibilitv Studies into the
1
No.
1
4.
Table 8: List o f International Individual Consultants (IC)
2 3 4 5 6 Review by Expected EO1 Bank (Prior
Estimated Selection
($Million) Method /Post submission Date Description of Assignment cost
Technical assistance for development o f PPP in Fansport 1 .o I C Prior 09/01/2009 sector (MOT)
0.7 I C Prior 09/01/2009 Technical assistance to aviation directorate
0.5 I C Prior 12/06/20 10 Technical assistance to Ministry o f Roads and Highways Transport Sector Donor Coordinator 0.3 IC Prior TBD
25. All contracts not subject to prior review will be post reviewed.
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Table 9: Complex or significantly risky NCB contracts to be prior-reviewed
No.
3
4
1 1 2
Contract (Description)
Minor Rehabilitation: Wute-Sasekpe- Amegakope- Kutime Road (VR) Minor Rehabilitation: Luagri - Prima Road (NR) Minor Rehabilitation: Namase- Brohani Road (BAR)
Improvement: Asawinso - Mmrewa Road
spot
(WR)
Estimated cost ($Million)
~~
3 1 4 1-5
P-Q Procurement Method
Domestic Preference (yes/no)
1.16
Expected
0 pen i n g Date
Review by Bid Bank (Prior/post)
I NCB l N o
0.84
0.30
NCB No
NCB No
N o Prior 11/09/2009
Prior 11/09/2009
No I Prior I 11/09/2009
No Prior 11/09/2009
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Annex 9: Economic Analysis
Ghana: Transport Sector Project
Sub-Component
GHA road (Ayamfuri-Asawinso) DUR roads - Giffard Road - Burma Camp Road
1. An economic analysis was conducted for the civil works, which consist o f reconstruction, rehabilitation, and upgrading o f the: (a) Ayamfuri-Asawinso (Ghana Highway Authority (GHA) sub-component); and (b) urban road network (Department o f Urban Roads (DUR) sub- component). The investments in feeder roads are small (about US$25,00O-US$75,000 per km), and spread all over the country because o f which they were subjected to cost-effectiveness analysis.
NPV (@ 12%) ERR FYRR (US$ million)
55.0 17.9% 22.4%
2.5 20% 2.7 15%
Summary
2. The civil works, including contingencies, represent about 75 percent o f the project cost. Economic analysis was not conducted on the capacity building, policy reform, studies, and project management sub-components. The economic analysis focused on the cost-benefit analysis o f GHA road and a sample o f roads from DUR, and a cost-effectiveness analysis o f a sample o f feeder roads.
Table 1: Summary of Economic Analysis
3. For the GHA road, the main benefits resulting from improving the road section to asphalt concrete standard include reduction in vehicle operating cost to existing traffic and transport cost savings for diverted freight traffic. The economic analysis was undertaken using the road planning model Highway Development and Management Model version 4 (HDM 4). The initial economic analysis was undertaken in 2006 using data collected in 2005/2006. In 2008, the analysis was updated to take into account a major revision o f costs. The DUR component was evaluated by comparing the “with project” case o f upgraded road and widening with the “without project” case o f keeping the existing road alignment in passable condition. The costs included investment costs based on updated design, resettlement cost and uti l i t ies relocation cost. The benefits were computed based on vehicle operating cost (VOC) savings, time savings and maintenance cost savings.
G H A sub-component
4. The Ayamfuri -Asawinso Junction road section (52 km) forms part o f the 350 km South- North corridor route selected by the government for improvement. The route i s located in the Western Region, Brong Ahafo and the borders o f central and Ashanti regions. The Ayamfuri -
77
Asawinso Junction section consists o f poor gravel and sealed road surfaces. However, other sections o f the route have recently been constructed, to a good sealed road standard, including 60 km from Axim to Tarkwa and Asawinso Junction to Gambia No. 2. To complete the route a further 176 km would need to be reconstructed and improved.
Light/ Heavy medium truck truck% %
8 10 9 19
9 6
5. The traffic volume along the 350 km route varies considerably with over 2,000 vehicles on the recently constructed part and lower traffic volumes on the poorer sections that have been identified for improvement. Much o f this traffic i s local in nature, long distance traffic tends to take other routes (for example from Takoradi to the North and West o f Ghana via Kumasi) rather than use the corridor. As can be seen from Table 2 below, passenger vehicles account for a high proportion o f current traffic. Apparent traffic growth along the corridor has been high in the period 2000-2005, ranging up to 30 percent per year for the Asawinso-Bibiani section.
Annual growth 2000-2005
14% 18%
3 0%
Table 2: Traffic Composition and Annual Growth
1 Traffic composition in 2005
6. The area directly served by the project route has a population o f about 800,000 people but there are a further 670,000 people in areas that are indirectly served through connecting feeder roads. The main economic activities in the project area are cocoa and food production, logging and timber processing and the mining o f gold, bauxite and manganese.
7. Development o f the route i s expected to help further stimulate economic development o f the resource rich western area o f the economy and improve i t s economic integration with the rest o f Ghana’s economy. The road will provide an alternative north-south link for transit traffic. The main economic benefits calculated to arise from the investment are reductions in vehicle operating costs to existing traffic as well as substantial transport cost savings for diverted freight traffic.
8. Future Traffic Growth and Potential for Diversion: A wide range o f commodities, with different growth characteristics use the route and may be expected to divert to the improved road corridor. Bauxite i s currently mined at Awaso (close to Asawinso) and i s exported via Takoradi port. In recent years output has been around 500,000 tons but the company i s committed to
78
increase production to 1.5 million tons within five years. Currently, about 60 percent production goes by rail and 40 percent by road to the port. However there are capacity constraints on the railway, and the Bauxite Company has invested in road transport to complement movement by rail. Other minerals mined in the area will only have a marginal impact on traffic using the new project road.
9. The Western Region accounts for 57 percent o f Ghana’s cocoa production and Brong Ahafo Region (to the north o f Western Region) a further 10 percent. Overall, about 60 percent o f the national cocoa crop i s exported via Tema while the remaining 40 percent i s exported via Takoradi. With the improved road, it i s anticipated that there would be substantial scope to take advantage o f the reduced transport costs and ship cocoa by road direct to Takoradi rather than by moving the crop f irst to Kumasi and then on to Tema.
10. Ghana’s forestry and timber processing i s concentrated in the south-west o f the country. Timber processing i s concentrated in Kumasi, Takoradi, and within the project area; these have respectively 40 percent, 30 percent, and 20 percent o f national capacity. Through reduced transport costs on the improved route, there i s believed to be scope for traffic diversion, particularly from alternative routes to the south fkom Kumasi.
11. diversion to this route, with the improvement o f the corridor.
So far, very little transit traffic uses the project route. However, there i s potential for
12. It has been assumed that population and income growth will provide the basis for traffic growth forecasts. As can be seen in Table 3, light vehicle growth i s assumed to be 7.1 percent in the period 2005-2015 and 6.5 percent in the period 2015-2025. Lower estimates have been made for minibuses and buses.
Table 3: Forecast Annual Growth Rates for Passenger Vehicles
i 2005-2015 1 2015-2025 I 2.9% 2.9% j Project area Population Growth
Growth in income per capita 2.7% 2.7%
- _ _ - __ _ I _ ^ I - _ _ _ _ _ 1 _-__llll , - - __I_ - - _ _ . - _ _ - ^ -
I -I- I -_ _ _ - _ _ _ _” I - - _ _
1.5 1.3 7.1% ~ 6.5%
_ _ _ - _ _ _ _- - __ - I _ _ ~ . _ _ _ _ . Light vehicle expenditure elasticity Light vehicle traffic growth - _ _ - - _ _ - - _ 1 -
Minibus-expenditure elasticity , 1 0.8 Minibus growth 5.7% i 5.1%
0.5 ““..I - - - I - Large bus expenditure elasticity 0.5 Large bus growth -1 - - 4.3% I 4.3%
_I ___I_ 111 l_l I -_-
13. Distance Saving: The potential distance saving via the route naturally varies along i t s length. The maximum distance saving to the port o f Takoradi i s 171 km fkom Awaso, providing a distance saving o f 41 percent o f the current predominantly used route. Awaso i s important because it i s the location o f the bauxite mine which i s close to Asawinso Junction the northern end o f the proposed IDA funded project component. Bibiani (a center for timber processing) has
79
a distance saving o f 116 km to Takoradi, a saving o f 31 percent o f the route length. Berekum at the far north o f the project corridor has a distance saving o f 35 km representing just eight percent o f the current route length.
14. Generated Traffic; Generated traffic was not a major feature o f the traffic analysis. It was felt-that the volume o f freight traffic would not be that sensitive to transport cost reductions. In general, passenger traffic can be expected to be more sensitive to transport cost savings and road improvements.
Economic Analysis
15. An economic appraisal o f the three project l i n k s (Tarkwa- Ayamfuri, Ayamfuri- Asawinso, and Gambia No. 2 to Kyeremaso) was undertaken using the road planning model HDM 4. Each road link was to be improved to asphalt concrete standard. The approach adopted was to estimate transport cost user savings from improving the road. Savings were calculated for both existing traffic using the route and savings from diverted traffic. The latter, arising principally f iom the diversion o f freight transport movements from other routes, amounted to 37 percent o f the benefits. A small volume o f generated traffic (amounting to less than 1 percent o f the savings) for passenger traffic movements was included in the analysis, and most o f this was associated with the final project link Gambia No. 2 to Kyeremaso.
16. An initial economic analysis was undertaken in 2006 using data collected in 2005/2006, which was later updated in 2008 to take into account a major revision o f costs. Vehicle operating cost and road maintenance cost data used in the appraisal are given in Tables 4 and 5.
Table 4: General Economic Input data in US$
PetroVltr 0.43 I I - - -
0.48 - ~ , - - DieselAtr
h r Overheads small 500-1000 I
Commercial vehicles
Passenger time value 0 1 5
_I __ __^_____I_I__ I
Overheads large ' 0.05 per km commercial vehicles j
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Table 5: Maintenance Unit Costs and Assumed Intervention Levels
Economic Maintenance unit Costs US$ patching /m2 8.7 , Without project 1 With project
j Maintenance intervention I _ _ ____I" _I___-_ _ A _ _ - _- -_I_ --- -- - - --I -
i 30% damaged area
~
- _ - ._ - I _ _ I _ _ _ _ .+ __ _ _ _ ~ _ _ Reseal /m2 4.4 Edge repair /m2 ~ 8.7 Grading /km ! 310.6 -' ~ At 121k Regravelling /m3 10.9 150 Imm when below 50 -
- - 100% -r-- -_ - I _ - - __ - __ ___I
100% i _-- _ I I I _ _ - __ - _ _ _ _ -
I_ - _ _ - _ . % - - " . i -
mm
17. The assumptions made in the 2008 update o f the economic analysis includes the construction costs, in U S Dollar terms, which was estimated to be 56 percent higher (for the three l inks) than previously estimated. To account for the rise in oi l prices, vehicle operating costs were assumed to be 20 percent higher than previously estimated. This was based on an assumption that long term oi l prices would be US$lOO per barrel in the long term. (The 2006 vehicle operating costs were based on international oi l prices at US$50 per barrel. Since then oi l prices have risen dramatically, reaching a peak o f US$147 per barrel in July 2008 with many estimates suggesting that long term price will be well over US$lOO per barrel. Assuming that long term oi l prices are at US$l 00 per barrel, using the HDM 4 analysis, raises average vehicle operating costs by 20 percent, with no increase in other component prices.)
18. The revised economic analysis indicated that the overall project (Le,, including the three sections) i s s t i l l economically viable with an economic internal rate o f return (EIRR) o f 17.9 percent. The switching value analysis shows that construction costs would have to r ise by 44.8 percent before the project becomes marginal (Le., has a 12 percent rate o f return). Similarly traffic benefits would have to fall by 34.6 percent to achieve the same result. The f i rs t year rate o f return (FYRR) i s 22.4 percent (well above the opportunity cost o f capital) indicating that the project i s timely, i.e., there would be no economic gain for postponing the project.
19. Because diverted traffic accounts for 37 percent o f total project benefits, and the extent o f diverted traffic i s heavily dependent upon the first two sections being completed, there i s no completely satisfactory way o f analyzing each section individually. However, an analysis was carried out to see the overall effect o f omitting the isolated Northern link (link 7, Gambia No. 2 - Kyeremaso) from the appraisal. The results show that the two remaining southern l i n k s are much more economically viable if this latter link i s omitted, or postponed, from the project. In this case the EIRR rises to 24.4 percent. The switching values are 64.2 percent and -44 percent respectively for construction costs and traffic benefits.
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Table 6: Results o f 2008 Revised Economic Analysis
Link , LinkName ~ Length 1 Financial 1 EconomicCost , No.
I
Kyeremaso I 160.0
- _ I - - _ _ l l - . - ~ 176.9 173.8 __ _ _ _ _ _ .
Total
N P V at 12% : $55.0 M NPVK : 0.34
FYRR: 22.4 Switching Values (assuming a discount rate o f 12%)
0-7 Total Project Results
EIRR: 17.9%
I Construction Costs: 44.8% 1 Traffic Benefits: - 34.6% -' Total Project Excluding Link 7 (Gambia No.2 to Kyeremaso). ~ N P V at 12% : $70.1 M NPVK : 0.53 ' EIRR: 24.4% ~ FYRR: 25.5% ~ Switching Values (assuming a discount rate o f 12%)
j - III______ I_II I _I I__
0-6
Construction Costs: 64.2% Traffic Benefits: -44.0 %
Department o f Urban Roads (DUR) Roads Sub-Component
20. Project Description: The proposed project roads consist o f 8.96 km o f Burma Camp road, starting from Giffard Road to Teshie Link; and 5.8 km Giffard road from Akuafo Circle to Tema Road.
Table 7: Description o f DUR Project Roads Item Road Name Length (km) Cost
' (US% million) I _
1. Burma Camp Road 8.96 33.7
2. ' Giffard Road , 5.8 ~ 11.7
2 1. Methodology: The methodology follows the conventional approach to evaluating project costs and benefits by comparing the "with project" case, which i s that o f the upgraded improved
82
road involving widening options or new road link, to the “without project” case, which i s that o f the existing road alignment. The emphasis l ies on analyses o f road user vehicle operating and travel time costs in the “with” and “without” situations using established quantitative methods, together with road construction and maintenance costs.
22. The analytical process involves a comparison between the different cost streams over the project twenty year evaluation period. The principal cost components in the analysis comprise those costs incurred in the form o f maintenance costs, both recurrent and periodic, associated with maintenance and upkeep o f the existing and project roads, as well as the capital construction costs associated with the new l inks and widening options o f the project roads. The other major cost component refers to road user costs, which are those costs associated with vehicle operation and travel time. The composition o f overall net benefits derives principally from these two road user cost elements in which vehicle operating and time cost savings are applied to the projected traffic flows over the duration o f the thirty year project appraisal period.
23. Traffic Characteristics: To obtain an idea o f the traffic f low on the two roads traffic studies were conducted in late December 2008. The count stations were made to coincide with locations o f previous counts in the corridors, and the data obtained analyzed to obtain the peak hour traffic f low for each road. The traffic was assumed to grow at three percent between 20 10 and 2016; four percent between 2017 and 2029; and two percent between 2030 and 2035. For the roads under consideration both generated and diverted traffic from the original study have been adopted. It i s observed that peak period i s four hours, two hours in the morning and two in the evening.
24. Project Costs: For the project roads, investment cost streams were obtained from design estimates and include civil works; resettlement expenses including costs associated with demolition o f properties and relocation o f utilities; cost o f environmental mitigation measures; relocation o f public uti l i t ies in the right o f way; and escalation in prices o f materials. To obtain economic costs for project appraisal, certain adjustments factors, “shadow pricing”, was used. The exercise yielded an overall modification o f the initial investment figures by an average o f seven percent for works undertaken by foreign-based contractors, and about 11 percent for works undertaken by local contractors.
25. savings as a result o f reduced congestion, and maintenance cost savings.
Project Benefits: The benefits were computed using vehicle operating cost savings, time
26. Economic Rate of Return (ERR): The estimation o f ERR for the various sub-projects indicate very robust rates o f return (see Table 8 below). The Giffard Road has an ERR o f 20 percent; and Burma Camp Road at 17 percent. Sensitivity analysis undertaken for the roads yield weighted ERRS of: (ii) 10 percent for 50 percent decrease in benefits; and (iii) 13 percent for 50 percent increase in costs.
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Table 8: Economic Rate of Return
Name of road
Giffard Road Burma Camp Road
AADT NPV 50% decrease in 50% decrease in (2009) ERR US$ million benefits (ERR YO) benefits (ERR YO) 8930 17% 2.67 9% 11%
20862 20% 2.44 11% 14%
Department o f Feeder Roads (DFR) Roads Sub-Component
27. The investments in this component are divided into two phases. Under phase 1, the focus i s on improving non-engineered feeder road l i n k s in the country to provide all-weather access to people. The total cost o f such works i s estimated at US$18 million. The total length o f the road network to be improved i s about 350 km at an average cost o f US$25,000 to US$75,000 per kilometer. Under phase 2, an additional amount o f US$15 mill ion has been allocated and the exact nature and location o f the improvements to be carried out will be developed during the first year o f project implementation, following an agreed selection criteria.
28. Given the small nature o f individual investments in phase 1, the selection o f specific feeder roads i s based on cost-effectiveness criteria in the following manner: First, feeder roads already included in the existing national network but o f low standard were considered. Second, feeder roads were prioritized according to their existing condition; the poorest quality roads were given top priority. Against this screening, roads were selected, by region, on the basis o f maximizing population given all-year accessibility to the primary and secondary road network. Finally, this selection was screened against availability o f social services, including health clinics, schools, markets, and extension services.
29. Table 9 shows the estimated cost-effectiveness range o f selected projects within the region. The cost effectiveness indicator i s the number o f people given all weather access to the national trunk road network per US$2,500 invested. It should be noted that, in addition to access, each US$2,500 investment i s also expected to create roughly 15 person-days o f employment. Broadly, regions to the south, central, and west have higher population density resulting in a higher cost effectiveness index; while regions in the north and upper west have low population densities resulting in a lower cost effectiveness index.
84
Table 9: Cost-Effectiveness Index for Select Feeder roads
Ashanti I I 10-29
85
Annex 10: Safeguard Policy Issues Ghana: Transport Sector Project
A. Environmental Assessments and Resettlement Action Plans
1. Components Cy D, and E o f the project include significant civil works (road rehabilitation and upgrading) to be executed in the first year work plan. In addition, there are minor civil works (construction o f classrooms, laboratory, hostel, workshop and offices) related to components B. The project therefore triggers OPBP 4.0 1 , Environmental Assessment (EA). Consequently, OP 4.11 , Physical Cultural Resources has also been triggered, as the policy applies whenever OP 4.01 applies, i.e. whenever there i s likely to be significant civil works. Also Involuntary Resettlement (OPBP 4.12) has been triggered. The project has been assigned the Environmental Category A.
2. An Environmental and Social Management Framework (ESMF), and a Resettlement Policy Framework (RPF) were prepared for the road sector in 2006, and re-disclosed for this project in December 2008. Environmental Impact Assessments (EIAs), Environmental Management Plans (EMPs), and Resettlement Action Plans (RAPS) for the f i rs t year's road projects (four roads) have been prepared and disclosed in-country and at the InfoShop in March 2009. Those roads are: Ayamfuri - Asawinso highway, Giffard Road, and Burma Camp Road. One EIA and one RAP cover the highway, and one EIA and likewise one RAP cover the three urban roads. The analyses and the census are, however, road specific, likewise the mitigation measures.
3. Additional works to be carried out in the second year include: (a) minor civil works (construction o f lecture hall, laboratory, hostel, workshop and offices); and (b) feeder roads rehabilitation and maintenance. These works wi l l be subject to ESMF/RPF requirements and site specific EIAs/EMPs and RAPS, if required.
4. Funding for Safeguard Mitigation Measures. The cost for implementation o f the mitigation measures as identified in the RAPs will be covered by the Government o f Ghana (GOG); the cost for Human Immunodeficiency VirudAcquired Deficiency Syndrome (HIV/AIDS) prevention and EMP will be covered by civil work contracts; and cost related to capacity building and training wi l l be financed by the Credit
5. Environmental Assessment. No salient adverse environmental impacts have been identified in the EIAs. Adverse impacts are restricted in scope and limited to the execution o f the following civil works operations: (a) establishment o f base camps for contractors and resident engineers; (b) road construction operations resulting in dust, noise, and temporary loss o f flora; (c) opening or re-opening o f borrow pits and solid rock quarries, which could result in soil erosion and pollution and aesthetically undesirable alterations o f the landscape; (d) opening o f diversions; and (e) dumping o f construction waste and accidental spillage o f machine oil, lubricants, etc. Environmental management plans (EMPs) have been prepared for each project road, as part of the EIAs, mitigation and monitoring measures have been established and costed.
86
6. Social Assessment. Social Impact Assessments (SIAs) were carried out as part of the road project’s feasibility studies. The findings o f the SIAs identified adverse, but not salient, social impacts. Adverse social impacts to be induced by the c iv i l works include: (a) land acquisition (resulting in involuntary resettlement), loss o f strips o f land, and (b) dislocation o f social values induced by the influx o f migrant workers (resulting in the spread o f HIV/AIDS). To mitigate the adverse social impacts o f project operations, two individual RAPS have been prepared and reviewed by the environmental desks o f DUR and GHA and cleared by Ghana’s EPA and by the Bank. One RAP i s covering the Ayamfuri - Asawinso highway, and the other i s covering the three urban roads, with respective census and analyses for each project road. The RAPS identified 33 1 households to be adversely affected, o f which 87 will permanently lose their properties and 244 will be partially affected. The EIA and SIA teams included both social scientists and environmentalists. The socio-economic data collected through review o f existing documentation, public consultations, and field studies, covered issues related to land tenure, land acquisition, involuntary resettlement, road safety, HIV/AIDS , vulnerable groups, indigenous peoples and cultural property.
B. Alternatives Considered to Minimize Adverse Safeguard -related Impacts
7. Drawing from experiences o f the Road Sector Development Project (RSDP), the road designs were required to take into account the potential environmental and social impacts o f the road alignments, with the aim to reduce adverse safeguards related impacts. Social protection clauses will be incorporated in the works contracts, including HIV/AIDS prevention. In the detailed designs, the right o f way requirements have been reduced in town sections, where adverse impacts on properties were presumed to be severe. During contract mobilization, the supervision consultants will undertake a design review o f the road alignments, and submit a right-of-way report, to confirm the design, construction obstacles, and suggest changes to the design in the aim to improve not only engineering efficiency, but also road safety and reduce adverse social impacts.
C. Consultations with Various Stakeholders and Affected Groups
8. The design o f the Transport Sector Project (TSP) i s participatory o n several levels: (a) at national level; (b) at regional level; (c) at district level; and (d) at donor community level. At the level o f districts, public consultations were held in local communities along the selected road projects throughout the EIAs and SIAs processes. The stakeholders included district administrations, community based organizations, community based facilitators, non- governmental organizations, sector administrations, and villages. The consultations focused on assessing the viability o f the project roads, identifying potential areas o f conflict between stakeholders, and defining areas o f collaboration.
9. The result o f the public consultations carried out in the SIAs and the E IAs confirmed support for implementation o f the road projects. To further improve stakeholders’ participation, the fol lowing actions will be undertaken as part o f the project implementation: (a) sustain consultations with district administrations, local communities and project affected persons (PAPS); (b) conduct training with the aim to strengthen the culture o f public consultations as a normal planning tool to sustain maintenance o f the road transport network; and (c) carry out repeated consultations with local communities during implementation at a l l stages o f the c iv i l
87
works, to minimize conflicts, enhance cooperation, and improve social benefits and performance o f the works contracts. Recurrent consultations, through public hearings and information, will provide opportunities for stakeholders (particularly rural areas), to express their concerns, provide suggestions and thereby strengthen social inclusion in future road planning, design, implementation and maintenance operations.
D. Capacity Assessment of Institutions Responsible for Safeguard Management
10. Mit igation o f adverse environment and social impacts o f development projects i s supported by national laws. The Land Valuation Board provides the executive instrument for any expropriation o f land or property for development projects (private or public), after receiving detailed designs and carrying out i t s own field inspections. The Board has both the human capacity and the logistic resources requested for the work. As part o f the RSDP initiatives, environmental desks were established at DUR and GHA. Review o f both environment and social safeguards documents, and monitoring o f compliance at supervision stage, have been the core tasks o f the desks. The main challenge has been human capacity. RSDP was the first training ground. The first safeguards documents to be prepared and implemented in the road sector in Ghana were under RSDP. The environmental desks are constituted o f two highway engineers with masters in environmental management (team leaders), and supported by young highway engineers in DUR and three sociologists in GHA.
11. There i s a need to further strengthen the social safeguards management capacity. The proposed TSP will support the environmental desks o f both DUR and GHA with the aim to: (a) train more staff; (b) strengthen the analytical capacity; and (c) facilitate the implementation and monitoring o f the EMPs and the RAPs prepared for each o f the proposed road projects. In addition, TSP will work with other Bank funded infrastructure projects in Ghana, in view o f creating synergies and a pool o f national experts.
E. References to Mitigation plans in the Project Legal Arrangements
12. incorporated into the Financing Agreement and will be included in the contract documents.
The mitigation o f adverse environmental and social impacts identified have been
F. Mechanisms to Monitor the Implementation of Agreed Mitigation Plans
13. The mandates o f the environmental desks are supported by national environmental laws. TSP will support the environmental desks to ensure compliance with the implementation o f the EMPs and the RAPs prepared for the proposed road projects. The EMPs and the RAPS include both internal and external monitoring arrangements. The internal monitoring will be carried out by the supervision engineers and the environmental desks o f DUR and GHA. The external monitoring will be conducted by the Environmental Protection Agency (EPA) o f Ghana and the departments o f c iv i l works o f the districts. Supervision and monitoring will be a continuous process. The day to day field supervision will be conducted by the construction supervision engineers and captured in the monthly and quarterly progress reports, which are subject to review by the environmental and social specialists o f the environmental desks. The environmental desks will continuously take stock o f al l expropriation, and compensation reports and discuss them on
88
regular basis. The environmental desks will produce quarterly progress reports on environmental and social performance. The reports will be part o f the overall project monitoring system. Monthly project progress reports usually prepared by the supervising consultants will report progress on EMP implementation and social safeguards outcomes, including HIV/AIDS.
89
Annex 11: Project Preparation and Supervision Ghana: Transport Sector Project
Planned Actual Project Concept Note review February 5,2007 Initial Project Identification Document February 12,2008 February 13,2008 to PIC Initial Integrated Safeguards March 7,2008 March 7,2008 Datasheet to PIC Appraisal February 23,2009 March 19,2009 Negotiations March 10,2009 April 22,2009 Board/RVP approval June 30,2009 Planned date o f effectiveness Planned date o f mid-term review Planned closing date June 30,2015
November 1 1 , 2007
August 3 1 , 2009 December 15,2012
Key institutions responsible for preparation o f the project:
Ministry o f Roads and Highways Ministry o f Transport
Bank staff and consultants who worked on the project include:
Name Title Unit Ajay Kumar Lead Transport Economist (Team Leader) AFTTR Tawia Addo-Ashong Senior Transport Specialist AFTTR Antoine Lema Social and Environment Specialist AFTTR John Hine Senior Rural Transport Specialist ETWTR John Richardson Transport Specialist AFTTR Anthony Mensa-Bonsu . Procurement Specialist AFTPC Robert Degraft-Hanson Fin. Mgmt. Specialist AFTFM Rajiv Sondhi Senior Finance Officer LOAFC Manush Hristov Senior Counsel LEGAF John Stewart Senior Environmental Specialist AFTEN Arun Banerjee Consultant AFTTR Jean-Francois Marteau Peer Reviewer AFTTR Henry Kerali Peer Reviewer ECSSD Imogene Jensen Peer Reviewer EASOP Anne Njuguna Program Assistant AFTTR Charity Boafo-Portuphy Program Assistant AFCWl
Estimated Approval and Supervision costs: (i) Remaining costs to approval: us$lo,ooo (ii) Estimated annual supervision cost: US$l 00,000
90
Annex 12: Documents in the Project File Ghana: Transport Sector Project
1.
2.
3. 4.
5. 6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Transport Sector Development Programme (TSDP) 2008-20 12, Ministry o f Transportation, Ministry o f Aviation, Ministry o f Harbours and Railways
National Transport Policy o f Ghana
Road Sector Development Programme, 2007 Review Report, Ministry o f Transportation.
Environmental and Social Management Framework, EPA, Ghana Resettlement Policy Framework, EPA, Ghana
Feasibility Study and Design and o f Arterials and Local Roads in Accra East Corridor, June 2008, D I W I Consult in Association with Municipal Development Collaborative Ltd. Detailed Design Report on the Rehabilitation o f Tarkwa-Bogoso-Ayamfuri-Asawinso and Gambia No. 2-Kyeremaso Roads, October 2007, Carl Bro Intelligent Solutions
Implementation Completion Report for the Road Sector Development Programme, 2007, World Bank Independent Procurement Review (1PR)-Road Sector Development Project, April 2005, Global Procurement Consultants Ltd Institutional Study o f the Transport Sector, Draft Final Report, 2006, WSP International in association with Crown Agents, UK.
Report on the Comprehensive Regional Implementation Plan for Aviation Safety in Africa Gap Analysis on Ghana 30 June - 4 July, 2008
ICAO Universal Safety Audit Action Plan o f 24th April, 2007
Revised Axle Load Control Policy and Action Plan, MOT, April 2005.
Urban Transport Planning and Traffic Management Report for the Greater Accra Metropolitan Area (GAMA), Sekondi-Takoradi, Cape Coast and Koforidua, Draft Final Report, DHV, 2005.
Evaluation o f the Management and Financing Arrangements for Road Maintenance, MOT/DANIDA, 2003.
91
Annex 13: Statement o f Loans and Credits Ghana: Transport Sector Project
Original Amount in US$ Millions
Difference between expected and actual
disbursements
Project ID FY Purpose IBRD IDA SF GEF Cancel. Undisb. Orig. Frm. Rev’d
P105092 2008 P101852 2008 PO74191 2008 P100619 2007 PO93610 2007 PO92986 2006 PO88797 2006
PO85006 2006 PO56256 2005 PO84015 2005
PO81482 2005 PO71157 2004 PO82373 2004 PO50620 2004 PO00970 1999
GH-Nut. & Malaria Ctrl Child Surv (FYO8) GH-Health Insurance Project (FYO8) GH-Energy Dev & Access SIL (FY08) GH-Urban Transport Project SIL (FY07) YGH-eGhana SIL (FY07) GH-Economic Management CB GH-Multi-Sect HIV/AIDS - M-SHAP (FY06) MSME Initiative GH-Urban Water SIL (FYO5)
0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00
25.00 15.00 90.00 45.00 40.00 35.00 20.00
45.00 206.00
0.00 0.00 0.00 18.18 2.09 0.00 0.00 0.00 13.60 9.64 0.00 0.00 0.00 72.92 -8.71 0.00 0.00 0.00 41.08 2.81 0.00 0.00 0.00 35.89 15.33 0.00 0.00 0.00 16.85 -3.94 0.00 0.00 0.00 9.81 5.41
0.00 0.00 0.00 40.49 19.70 0.00 0.00 0.00 69.52 51.54
0.00 0.00 0.00 0.00 0.00 0.00 3.46
0.00 0.00
GH-Small Towns Water Sply & Sanit 0.00 36.00 0.00 0.00 0.00 10.75 -0.59 0.00 (FYOS) GH-Com Based Rural Dev (FYOS) 0.00 82.00 0.00 0.00 0.00 24.07 -0.37 0.00 GH Land Administration (FY04) 0.00 20.50 0.00 0.00 0.00 6.88 4.86 0.00 GH-Urban Env Sanitation 2 ( FY04) 0.00 62.00 0.00 0.00 0.00 41.13 23.70 0.00 GH-Edu Sec SIL (FY04) 0.00 78.00 0.00 0.00 0.00 34.08 26.95 0.00 GH-Trade Gateway & Inv SIL (FY99) 0.00 50.50 0.00 0.00 0.00 3.76 1.04 -1.21
Total: 0.00 850.00 0.00 0.00 0.00 439.01 149.46 2.25
92
GHANA STATEMENT OF IFC’s
Held and Disbursed Portfolio In Millions o f U S Dollars
FY Approval Company
Committed Disbursed
IFC I F C Loan Equity Quasi Partic. Loan Equity Quasi Partic.
1990 1998 1997 1994 1996 2006 1989 200 1 2000 1991 2006 2005 2005
AAIL AEF NCS AEF PTS AEF Shangri-la AEF Tacks Farms Barclays Bnk GHA CAL Bank Ltd Diamond Cement ELAC GHANAL Newmont Ghana Scancom School Fin Facil
0.00 0.00 0.00 0.93 0.43 30.00 0.00 2.50 0.00 0.00 75.00 40.00 1.03
2.55 0.00 0.00 0.00 0.00 0.00 0.87 0.00 0.10 0.22 0.00 0.00 0.00
0.00 0.53 0.3 1 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
50.00 0.00 0.00
0.00 2.55 0.00 0.00 0.00 0.00 0.93 0.00 0.37 0.00 0.00 0.00 0.00 0.87 2.50 0.00 0.00 0.10 0.00 0.22 0.00 0.00
20.00 0.00 0.25 0.00
0.00 0.00 0.53 0.00 0.3 1 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total portfolio: 149.89 3.74 0.84 50.00 24.05 3.74 0.84 0.00
Approvals Pending Commitment
FY Company Loan Equit Quasi Partic. Approv Y al
2005 Scancom 0.00 0.00 0.00 0.00 2004 Takoradi I1 0.06 0.00 0.00 0.00
Total pending 0.06 0.00 0.00 0.00 commitment:
93
Annex 14: Country at a Glance
Ghana: Transport Sector Project
Ghana a t a glance 9124108
Key Development Indicators
(2007)
Population, mid-year (millions) Surface area (thousand sq. km) Population growth ( O h )
Urban population (% of total population)
GNI (Atlas method, US$ billions) GNI per capita (Atlas method, US$) GNI per capita (PPP, international $)
GDP growth ( O h )
GDP per capita growth (%)
(most recent estimate, 200&2007)
Poverty headcount ratio at $1.25 a day (PPP. %) Poverty headcount ratio at $2.00 a day (PPP, %) Life expectancy at birth (years) Infant mortality (per 1,000 live births) Child malnutrition ( O h of children under 5)
Adult literacy, male (% of ages 15 and older) Adult literacy, female (% of ages 15 and older) Gross primary enrollment, male (% of age group) Gross primary enroliment, female (% of age group)
Access to an improved water source (% of population) Access to Improved sanitation facilities (% of population)
Ghana
23.5 239 2.0 49
13.9 590
1,330
6.3 4.2
60 78 1s
66 50 98 97
80 10
Sub- Saharan
Africa
800 24,242
2.4 38
762 952
1.870
8.2 3.7
50 72 50 94 27
69 50 99 88
58 31
LOW inwme
1,298 21.846
2.1 32
749 578
1,500
6.5 4.3
57 85 29
72 50
100 89
88 39
Net Aid Flows
(US$ millions) Net ODA and official aid Top 3 donors (in 2006):
United Kingdom Netherlands United States
Aid ( O h of GNI) Aid par capita (US$)
Long-Term Economic Trends
Consumer prices (annual % change) GDP implicit deflator (annual % change)
Exchange rate (annual average, local per US$) Terms of trade index (2000 = 100)
Population, mid-year (millions) GDP (US$ millions)
Agriculture Industry
Services
Household final wnsumption expenditure General gov't final consumption expenditure Gross capital formation
Exports of goods and services Imports of goods and services Gross savings
Manufacturing
1880
191
35 5
19
4.3 17
50.1 51.1
9.6
11.4 4,445
57.9 11.9 7.8
30.2
83.9 11.2
5.6
8.5 9.2 4.5
I890 2000
560 600
22 80 25 28 13 63
9.7 12.4 36 30
37.3 25.2 31.2 27.2
326.3 5,455.1 83 100
15.8 20.1 5,888 4,977
44.8 35.3 16.8 25.4 9.8 9.0
38.4 39.3
85.2 84.3 9.3 10.2
14.4 24.0
16.9 48.8 25.9 87.2
7.0 15.7
(% of GDP)
2007
1,176
187 97 88
9.3 51
9.4 14.8
9.339.3 64
23.5 15,248
36.3 25.3
8.2 38.4
77.5 12.7 32.9
36.2 59.3 27.6
Age distrlbutlon, 2007
Male Female
75-79 I 60.64
45.48
30.34
15-18
0 4 20 10 0 10 20
percent
Under-6 mortality rate (per 1,000)
200
$50
100
60
0 1880
0 Ghana
1886 2000 2006
0 Sub-Saharan Africa
I Growth of QDP and GDP per caplta (%)
1 8 T
I eo
95 w 05
I +GDP - GDP per capita
1880-90 1880-2000 200047 (average annual gmwth %) 3.1 2.6 2.2 . 3.0 4.3 5 .5
1 .o 3.4 3.9 3.3 2.7 7.5 3.9 -4.5 5.7 5.6 6.2
2.8 4.1 5.7 2.4 4.8 -7.0 3.3 4.3 14.7
2.5 10.1 3.9 0.6 10.4 7.2
Nota: Figures in italics are for years other than those specified. 2007 data are preliminary. .. indicates data are not available a. Aid data are for 2006.
Development Economics, Development Data Group (DECDG).
94
Ghana :
Balance o f Payments and Trade
(US$ miiiions) Total memhandisaexports (fob) Total merchandise imports (cif) Net trade in goods and services
Mrkers' remittances and compensation of employees (receipts)
Current account balance a s a % o f G D P
Reserves. including gold
Central Qovernment Finance
( % o f GDP) Currant revenue (including grants)
Current expanditura
Overall surplus/deficit
Highest marginal tax rate (%)
Tax revenue
Individual Corporate
External Debt and Resource Flows
/US$ rniiiions) Total debt OUtStandinQ and disbursed Total debt service Debt relief (HIPC, M DRI)
Totaidebt ( % o f G D P ) Total debt service (%of exports)
Foreign direct investment (net inflows) Portfolio equity(net inflows)
2 0 0 0
1938 3,031 -922
32
-4 8 -8.4
284
8 . 8 8 . 3 8 .5
-8.7
30 33
8,18 388
2,742
-2.9 15.7
8 8 0
2007
4,P5 8,091
-3,444
a 5
-725 -4.8
2,398
24.5 7 . 3 8 . 1
-8.0
25 22
3,82 267 1938
25.7 5.6
435 0
Composit ion o f to ta l external debt, 2 0 0 6
IBRD.0 I rlDA.810
Short-term 1,143
iMF 158
Pr lvate Sector Development
Time required to start a business (days) Cost to start a business ( % o f G N I percapita) Time required to register property (days)
Ranked as a majorconstraint to business (%of managers surveyed WIo agreed)
n.a. n.a.
Stock market capitalization ( % o f G D P ) Bank capital to asset ratio (%)
2 0 0 0
2 0 0 0
T3.1 I18
2 0 0 8
34 32.7
34
2 0 0 7
15.6 R.4
Sovernance Indlcators, 2 0 0 0 and 2 0 0 7
Voice mnd accouniabllity
POlitICel stability
Regulatory quality
Ruleof law
Control of wrruption
0 25 50 7 5 100
2007 0 2000 higher vdoeolmply befterrnfrnps
Country's percentile rrnk (0-MO)
owc. Ksurmllnn-Kr..y-M.aru2ri,VIbrld8.nk
2 0 0 0 2 0 0 7 Technology and Infrastructure
Paved roads (%oftotal) Fixedlinaandmobiie phone
High technologyaxports subscribers (per 1000 people)
(%of manufactured exports)
29.6 l 7 9 I
2 34 '
19 0 2
E nv lro nm e nt
Agricultural land (%of land area) 84 65 Forest area (%of land area) 28.8 24.2 Nationally protected areas (%of land area) .. 8 . 2
Freshwater rasources par capita (cu. meters) .. I345 Freshwaterwithdrawal (%of internal resources) 3.2
C 0 2 emissions percapita (mt) 0.31 0.33 ' !
GDP per unit of energyusa (2005 P P P $ per kg of oil aquivalent) 2.6 2.9 i i
Energyuse per capita (kg of oil equivalent) 392 397 1
(US$ rniiiions)
IBRD Total debt outstanding and disbursed Disbursements Principal repayments Interest payments
IDA Total debt OUtStanding and disbursed Disbursaments Total debt service
IFC (fiscal year) Total disbursed and outstanding partfolio
Disbursements for IFC own account Portfolio sales, prepayments and
repayments for IFC own account
of WIich IFC own account
M IGA Qross exposure
9 0 8 1
3,t30 204 47
24 24
0
7
15 New guarantees 0 0
Note Figures in italics are for years otherthan those specified 2007 data are preliminary indicates data are not available -indicates observation is not applicable
Development~Economics Davelopmen!pataGro-Lp(DECDG) - _ _ - _ I_ _-___ I_ I - - - - I __
9/24/08 j ~
95
IR11
IR11
IR11
IR11IR10
IR10
IR11
IR11
IR11
IR11
IR4
IR4
IR4
IR4
IR4
IR4
IR9IR9
IR9IR9
IR7
IR7
IR7IR7
IR4
IR5IR5
IR8
IR8
IR8
IR8
IR6
IR6
IR6
IR2
IR1IR2
IR2
IR2
IR1IR1
IR3
IR3
IR3
IR3
IR3
IR3
IR3
IR2
IR3IR3
IR7
IR7IR7
IR7
IR5
IR8
IR9
IR9
IR10
N13
N10
N10 N11
N10
N11N2
N2
N2
N14
N14
N2
N2
N2
N2
N9N10
N7
N7
N12
N12
N12
N12
N12
N12
N12
N12
N12
N1
N1
N1
N10
N8
N8
N10
N10
N10
N10
N10
N10
N10
N10
N6
N6
N6
N8
N1
N1
N1
N6
N1
N4
N4
N4
N6
N4 N3 N3
N6
N2
N5
N2
N1N1
N1
N2
N2
N2
N2
N2
N10
N10
N5
N6N6
N6
N1
N12
N12
N12
N18
N18
N13
N13N13
N16
02
0201
12
01
02
03
04
05
08
07 06
05
06
04 05
02
03
10
07 07
11
01
10
09
01
08
07
05
06
04
01 0101
02
0302
04
03
04
02
01
03
04
05
06
06
07
08
09
01
0109
10
10
11
0210
01
11
12
01
09
02
03
02
11
10
03
12
01
0201
13
09 01
06
09
08
02
01
01
08
01
01
02
03
01
02
03
0103
07 06
01
0101
03
01
01
02
03
02
05
05
03
02
01
02
01
0205
01
01
02
03
05
02
06
07
06
05
03
0102
03
02
06
02
07
0809
05
05
03
02
0201
01
01
04
04
04
04
04
04
Aflao
Anyako
Anyanui
Wute
Prampram
Akplabanya
Battor
Bortianor
Senya Bereku
Adaiso
Kwanyaku
Golokuati
KpedzeShia
KpetoeAbutia-
Kloe
BosoDominase
Akoroso
AkraAbremHeman
Tumfokuro
Samreboe
Elubo
Jewi Whorf
Takoradi
Bandae
Ataase
Huitimbo
InsuBogoso
Agyempama
BuakaBenchema
Krokosue
BodiDadeeso
Amoya
Akwantonbra
Dwokwaa
Jabo
DiasoSefwiBekwai
Sefwi Anhwiaso
Nyinahin
Akoasi Asesewa
Oterkpolu
Sekasua
Kwahu TafoAnfoeta
Abofoo
Teekyere
Shi
Adwumadiem
YamatwaSiekabenkuram
Kwadwonkromkurom
Kwakwanya
Akontaanim
Kotuo Namasua
Tuobodum
Hiawoanwu
Abease
Yeji
Baantama
Kwadwokurom
DambaiBuafri
Ohiamankyene
Zongo-Markyeri
Jombo
NakpayiliWoribogu
NakpaliJuo
Sambu
Sabari
Tijo
Karaga
Yawgu
Wenchiki
Cherepon
Nakpanduri
Gbangdaa
MogonoriKulungugu
Kamsorio
Binaba
DatokoTongo
Zuarungu
Paga
Naga
Fumbisi
PinaGwallu
Jeffisi
Hamale Gbal
Sabuli
Tanina Bulenga
Wechiau
Dorimon
Sawla
ChacheLarabanga
Sorri
Busunu
Fufulsu
Mpana
Mankpan
Gbulumpe
Nyankpala
Nawuni
Yepalsi
Janga
Nasia
Diari
Hian
Tuna
Seripe
Teselima
New Longoro
Chibrungo
Jema
Ateso
New-Debiso
Atobiase
Asaman
Bodwesango
AkokoasoAjuafo
Ntronan
Amua
AduamoaObo
BaagloKute
Ahamasu
Dodo
Asukawkaw
Brewaniase
Kpandae
Makongo
Kimabui
Wangasi-Turu
Gbung
Barekese
Awaaso
AdansiAkrofuom
AkimSwedru
Esaaman
Ayiem
AkwidaaPrince´s
Town
Eikwe
Alenda
Apataim
Prestea HuniValley
Nsuta
Bui
Nsawkaw
Dwokwa
Achiasi
Edubia
Obogu
Agogo
Kayoro
Mankarigu
Gambia No.2
Denu
Keta
Ada
Sogakofe
Adidome Akatsi
Tema
AmasamanNsawam
DodowaAsamankese
WinnebaApam
Swedru
Ajumaku
Esikuma
Saltpond
Dunkwa
Elmina
Foso
Twifo Praso
Half Assini
Axim AgonaJunction
Daboasi
Tarkwa
AsankranguaaEnchi
JuabesoBibiani
MansoNkwanta
Mankranso
Kuntanase
Ejisu
KonongoJuaso
Bekwai
Obuasi
Oda
Odumasi KroboSomanya
Senchi
Akropong
Effiduase
AgonaOfinsoTepa
BekyemKenyasi
No.1
Goaso
Dormaa-Ahenkro
New Drobo
Wenchi
Techiman Nkoranza
Ejura
AtebubuKwame Danso
Nkwanta
Bimbila
Yendi
Zabzugu
Gushiegu
Saboba
Gambaga
Bawku
ZebillaBongoNavrongo
Sandema
Tumu
LawraJirapa
Nadawli
Bole Damongo
Tolon
Savelugu
Walewale
Kintampo
Dunkwa
New Adubiase
Salaga
Berekum
Kpandu
Kade
Abirem
Begoro
Mpraeso
Odonkawkrom
Kete-Krachi
Hohoe
Jasikan
Kadjebi
Mampong
Kibi
Suhum
Nkawie
Koforidua
Ho
Cape Coast
Sekondi-Takoradi
Kumasi
Sunyani
Bolgatanga
Wa
Tamale
ACCRA
Ayamfuri
Asawinso
Aflao
Anyako
Anyanui
Wute
Prampram
Akplabanya
Battor
Bortianor
Senya Bereku
Adaiso
Kwanyaku
Golokuati
KpedzeShia
KpetoeAbutia-
Kloe
BosoDominase
Akoroso
AkraAbremHeman
Tumfokuro
Samreboe
Elubo
Jewi Whorf
Takoradi
Bandae
Ataase
Huitimbo
InsuBogoso
Agyempama
BuakaBenchema
Krokosue
BodiDadeeso
Amoya
Akwantonbra
Dwokwaa Ayamfuri
Jabo
Diaso
Asawinso
SefwiBekwai
Sefwi Anhwiaso
Nyinahin
Akoasi Asesewa
Oterkpolu
Sekasua
Kwahu TafoAnfoeta
Abofoo
Teekyere
Shi
Adwumadiem
YamatwaSiekabenkuram
Kwadwonkromkurom
Kwakwanya
Akontaanim
Kotuo Namasua
Tuobodum
Hiawoanwu
Abease
Yeji
Baantama
Kwadwokurom
DambaiBuafri
Ohiamankyene
Zongo-Markyeri
Jombo
NakpayiliWoribogu
NakpaliJuo
Sambu
Sabari
Tijo
Karaga
Yawgu
Wenchiki
Cherepon
Nakpanduri
Gbangdaa
MogonoriKulungugu
Kamsorio
Binaba
DatokoTongo
Zuarungu
Paga
Naga
Fumbisi
PinaGwallu
Jeffisi
Hamale Gbal
Sabuli
Tanina Bulenga
Wechiau
Dorimon
Sawla
ChacheLarabanga
Sorri
Busunu
Fufulsu
Mpana
Mankpan
Gbulumpe
Nyankpala
Nawuni
Yepalsi
Janga
Nasia
Diari
Hian
Tuna
Seripe
Teselima
New Longoro
Chibrungo
Jema
Ateso
New-Debiso
Atobiase
Asaman
Bodwesango
AkokoasoAjuafo
Ntronan
Amua
AduamoaObo
BaagloKute
Ahamasu
Dodo
Asukawkaw
Brewaniase
Kpandae
Makongo
Kimabui
Wangasi-Turu
Gbung
Barekese
Awaaso
AdansiAkrofuom
AkimSwedru
Esaaman
Ayiem
AkwidaaPrince´s
Town
Eikwe
Alenda
Apataim
Prestea HuniValley
Nsuta
Bui
Nsawkaw
Dwokwa
Achiasi
Edubia
Obogu
Agogo
Kayoro
Mankarigu
Gambia No.2
Denu
Keta
Ada
Sogakofe
Adidome Akatsi
Tema
AmasamanNsawam
DodowaAsamankese
WinnebaApam
Swedru
Ajumaku
Esikuma
Saltpond
Dunkwa
Elmina
Foso
Twifo Praso
Half Assini
Axim AgonaJunction
Daboasi
Tarkwa
AsankranguaaEnchi
JuabesoBibiani
MansoNkwanta
Mankranso
Kuntanase
Ejisu
KonongoJuaso
Bekwai
Obuasi
Oda
Odumasi KroboSomanya
Senchi
Akropong
Effiduase
AgonaOfinsoTepa
BekyemKenyasi
No.1
Goaso
Dormaa-Ahenkro
New Drobo
Wenchi
Techiman Nkoranza
Ejura
AtebubuKwame Danso
Nkwanta
Bimbila
Yendi
Zabzugu
Gushiegu
Saboba
Gambaga
Bawku
ZebillaBongoNavrongo
Sandema
Tumu
LawraJirapa
Nadawli
Bole Damongo
Tolon
Savelugu
Walewale
Kintampo
Dunkwa
New Adubiase
Salaga
Berekum
Kpandu
Kade
Abirem
Begoro
Mpraeso
Odonkawkrom
Kete-Krachi
Hohoe
Jasikan
Kadjebi
Mampong
Kibi
Suhum
Nkawie
Koforidua
Ho
Cape Coast
Sekondi-Takoradi
Kumasi
Sunyani
Bolgatanga
Wa
Tamale
ACCRA
REG
ION
UPPER WESTREGION
REGION
BRONG-AHAFOREGION
ASHANTI REGION
WESTERNREGION
CENTRALREGION
EASTERN
REGION
VO
LTA
EASTUPPER
NORTHERN
REG
ION
GREATERACCRA
B U R K I N A F A S O
C Ô T ED ´ I V O I R E T O G O
B E N I N
G u l f o f G u i n e a
Ank
obra
Tano
Ofin
Pra
Birim
Afram
Obosum
Pru
Sene
Black Volta
Daka Oti
White V
oltaKulp
awn
Felin
Sisili
Red Volta
White
Volta
Dayi
Lake Volta
8°
7°
6°
5°
1°0°1°2°3°
5°
6°
7°
8°
9°
10°
11°
3° 2° 0° 1°
11°
10°
9°
1°
GHANA
Accra
GUINEA
L IBERIA
C Ô T ED ' I V O I R E
GHANA
TOGO
BENIN
BURKINA FASO
NIGER
M A L I
M A U R I T A N I A
NIGERIA
G u l f o f G u i n e a
Area of map
GHANA
TRANSPORT SECTOR PROJECTIBRD
36913
APRIL 2009
1000 50 150
KILOMETERS
NATIONAL CAPITAL
REGIONAL HEADQUARTERS
DISTRICT AND SUB-DISTRICT HEADQUARTERS
OTHER MAIN TOWNS
REGION BOUNDARIES
INTERNATIONAL BOUNDARIES
DUR ROADS
WORLD BANK FUNDED ROAD
EUROPEAN COMMISSION FUNDED ROAD
NATIONAL ROADS
INTER-REGIONAL ROADS
REGIONAL ROADS
ROAD SECTION IDENTIFICATION
RAILROADS
PORTS
IR10
N13
07
This map was produced by theMap Design Unit of The World Bank.The boundaries, colors,denominations andanyother information shownon this mapdo not imply, on the part of The WorldBank Group, any judgment on the legalstatus of any territory,or any endorsementor acceptance of such boundaries.
