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Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 47324-GH PROJECT APPRAISAL DOCUMENT ON A Public Disclosure Authorized PROPOSED CREDIT IN THE AMOUNT OF SDR 150.5 MILLION (US$225.0 MILLION EQUIVALENT) TO THE REPUBLIC OF GHANA FOR A Public Disclosure Authorized TRANSPORT SECTOR PROJECT May 20, 2009 Transport Sector Country Department AFCW1 Africa Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Exchange Rate Effective: March 3 1,2009 Currency Unit = Ghanaian Cedi (GH$) US$1 = GH61.41 US$1 = SDR0.66864 FISCAL YEAR January 1 - December31 ABBREVIATIONS AND ACRONYMS AADT Annual Average Daily Traffic AFD Agence Frunpise de De'veloppement (French Development Agency) AIDS Acquired Immune Deficiency Syndrome BAS Beneficiary Agencies BADEA Arab Bank for Economic Development in Africa BP Bank Procedure CIDA Canadian International Development Agency DANIDA Danish International Development Agency DfID Department for International Development DFR Department of Feeder Roads DP Development Partner DUR Department of Urban Roads DVLA Driver and Vehicle Licensing Authority EA Environmental Assessment EC European Commission EIA Environmental Impact Assessment EMP Environmental Management Plan EO1 Expression of Interest EOP End of Project EPA Environmental Protection Agency EIRR Economic Internal Rate of Return ERR Economic Rate of Return ESMF Environmental and Social Management Framework FBS Fixed Budget Selection FMT Financial Management Team FYRR First Year Rate of Return GACL Ghana Airports Company Limited GCAA Ghana Civil Aviation Authority GEF Global Environment Facility GHA Ghana Highway Authority GIMPA Ghana Institute of Management and Public Administration GIS Geographical Information System GMA Ghana Maritime Authority GOG Government of Ghana GPHA Ghana Ports and Harbors Authority GPRS Growth and Poverty Reduction Strategy GRCL Ghana Railway Company Ltd. GRDA Ghana Railway Development Authority GTTC Government Technical Training Center HDM Highway Development and Management Model HIV Human Immunodeficiency Virus IAs Implementing Agencies IC Individual Consultants ICB International Competitive Bidding ICAO International Civil Aviation Organization IDA International Development Agency IFR Interim Unaudited Financial Report IRI International Roughness Index ITP Integrated Transport Plan KIA Kotoka International Airport KNUST Kwame Nkrumah University of Science and Technology LCS Least Cost Selection MDAs Ministries, Departments, and Agencies MIC Middle-Income Country MMDAs Metropolitan, Municipal, and District Assemblies MRH Ministry of Roads and Highways MOFEP Ministry of Finance and Economic Planning MOT Ministry of Transport MTR Mid-Term Review NCB National Competitive Bidding NMT Non-motorized Transport NPV Net Present Value NRA National Roads Authority NRSC National Road Safety Commission NRSS National Road Safety Strategy NTP National Transport Policy OP Operational Policy PAD Project Appraisal Document PDO Project Development Objectives PFM Public Financial Management PIM Project Implementation Manual PIT Project Implementation Team PPP Public Private Partnership PSC Project Steering Committee PSP Private Sector Participation PT Procurement Team QCBS Quality and Cost Based Selection RAI Rural Accessibility Index RAP Resettlement Action Plan RPF Resettlement Policy Framework RMU Regional Maritime University RSDP Road Sector Development Program SBD Standard Bidding Document SDR Special Drawing Rights SIA Social Impact Assessment SIL Sector Investment Lending TOR Terms of Reference TSDP Transport Sector Development Program TSP Transport Sector Project us United States VLTC Volta Lake Transport Company voc Vehicle Operating Cost Vice President: Obiageli Katryn Ezekwesili Country ManagerDirector: Ishac Diwan Sector Director: Inger Andersen Sector Manager: C. Sanjivi Rajasingham Task Team Leader: Ajay Kumar GHANA TRANSPORT SECTOR PROJECT CONTENTS Page A . STRATEGIC CONTEXT AND RATIONALE ............................................................... 1 1. Transport and the Country’s Growth Agenda ..................................................................... 1 2 . Sector Issues ........................................................................................................................ 3 3 . Rationale for Bank Involvement .......................................................................................... 7 4 . Higher Level Objectives to which the Project Contributes ................................................. 8 B. PROJECT DESCRIPTION............................................................................................... 9 1. Lending Instrument.............................................................................................................. 9 2 . Project Development Objective (PDO) and Key Indicators., ............................................. -9 3 . Project Components............................................................................................................ -9 4 . Lessons Learned and Reflected in the Project Design ...................................................... 13 5 . Alternatives Considered and Reasons for Rejection ......................................................... 14 C. IMPLEMENTATION...................................................................................................... 14 1. Partnership Arrangements ................................................................................................. 14 2 . Institutional and Implementation Arrangements .............................................................. -15 3 . Monitoring and Evaluation of OutcomesResults ............................................................. 16 4 . Sustainability ..................................................................................................................... 16 5 . Critical Risks and Possible Controversial Aspects ............................................................ 17 6 . Credit Conditions and Covenants ..................................................................................... -19 D . APPRAISAL SUMMARY ............................................................................................... 20 1. Economic and Financial Analyses ..................................................................................... 20 2 . Technical ........................................................................................................................... 21 3 . Fiduciary ............................................................................................................................ 21 4 . Social ....................... ...-...................................................................................................... 22 5 . Environment ...................................................................................................................... 23 6 . Safeguard policies .............................................................................................................. 24 7 . 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 Sectors: Roads and highways (75%); General Sector Director: Inger Andersen transportation sector (1 5%); Central Sector Manager: C. Sanjivi Rajasingham
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