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The World Bank Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized ReportNo. 9823-GH STAFF APPRAISAL REPORT REPUBLICOF GHANA Public Disclosure Authorized NATIONAL FEEDER ROADS REHABILITATION AND MAINTENANCE PROJECT NOVEMBER 19, 1991 Public Disclosure Authorized Infrastructure Operations Division Public Disclosure Authorized Western Africa Department Africa Region This documenthas a restricteddistribution and may be used by recipients only in the performanceof their official duties. Its contb ' Vt rW"vw 7 '' " Wit ^ W ' Df,X II ,, I. CURRENCY AND EQUIVALENTUNITS Currency Unit Cedis C USS1.0 a Cedis 375 1.0 Cedi * USS.0027 WEIGHTS AND MEASURES 1 meter (m) 3.28 feet (ft) 1 hectare (hs) 2.47 acres 1 kilometer (km) m 0.62 mile (mi) 1 metric ton (t) u 2,205 pounds Cib) ABBREVIATIONSAND ACRONYMS ADF - African Development Fund NTADS - Mediun Term Agricultural ADT - Average Daily Traffic Development Strategy AGSAP - AgriculturaLSector MTC - Ministry of Transportand AdJustment Proaram Communications BHC - Bank for Housing and MTPU - Mechanical Training and Construction Production Unit CRP - Cocoa RehabilitationProject NFRDP - National Feeder Roads CTC - Central Training Center DevelopmentProgram DANIDA - Danish International NFRRMP - National Feeder Roads DevelopnentAgency Rehabilitationand DFR - Department of Feeder Roads Maintenance Project DUR - Department of Urban Roads NGO - Non-Governmental Organization EPC - Enviromnental Protection OPEC - Organizationof Petroleun Council ExportingCountries ERP - Economic Recovery Program PANSCAD - Program of Actions to Mitigate ERR - Economic Rate of Return the Social Costs of Adjustment GDP - Gross Domestic Product in Development GHA - Ghana Highway Authority PCR - Project CompLetion Report GIMPA - Ghana Institute of Management PKU - Project Management Unit and Public Administration PNDC - Provisional National Defense GOG - Goverrnent of Ghana Council ICB - International Competitive PPF - Project Preparation Facility Bidding RRMP - Road Rehabilitation and IFAD - International Fund for Maintenance Program AgriculturalDevelopment RTPU - Road Training and Production IBRD - InternationalBank for Unit Reconstruction& Development SAR - Staff Appraisal Report ILO - InternationalLabour SDR - Special Drawing Rights Organization SIAN - Spot Inprovement and INT - IntermediateMeans of MaintenanceUnits Transport ShC - Single Man Contractors LCB - Local Competitive Bidding SOE - Statement of Expenditure LOI - Letter of Invitation TOR - Terms of Reference MA - Ministry of Agriculture TRP-1 - First Transport Rehabilitation MFEP - Ministry of Finance and Project Economic Planning TRP-2 - Second Transport MLG - Ministry of 'acal Goverrunent Rehabilitatirn Project MREMAT - Mobile Repair and UNDP - United Nations Development Maintenance Units Progra_ MPBS MaintenanceM Performance and UNV - United Nations Volunteers Budgeting System USAID - United States Agency for NRH - Ministry of Roads and InternationalDevelopment Highways WFP - World Food Programme FISCAL YEAR January 1 - December 31 FOR OFFICIALUSE ONLY REPUBLIC OF GHANA NATIONAL FEEDER ROADS REHABILITATIONAND MAINTENANCE PROJECT STAFF APPRAISAL REPORT Table of Contents Page No: CREDIT AND PROJECT SUMMARY ......... ....................... i I. INTRODUCTION . .................................... 1 II. BACKGROUND....................................... 1 A. The Country and its MacroeconomicSetting .............. 1 B. The Agricultural Sector ........... ............... 2 C. The Transport Sector ............................ 3 D. Government DecentralizationPolicy and Strategy . ...... ... 5 E. Bank Group Assistance in Agriculture and Roads ... ....... 7 Ell. FEEDER ROAD CONSTRAINTSAND STRATEGY ............... 8 A. Feeder Road Organization. 8 B. Institutional Capacity. 9 C. District Routine Maintenance Organization .... ........... 11 D. Feeder Road Planning and Selection ................... 12 E. Design and Technology Choices ..................... 13 F. Feeder Road Development Strategy ............. ..... 14 IV. THE PROJECT ................................... 16 A. Pro ect Objectives ......... ... 16 B. Pro ect Description .............................. 16 C. Pro ect Cost and Financing .. : ..................... 21 D. Project Design and Implementation ...... ............. 24 E. Status of Project Preparation ....... ................ 27 F. Procurement ................................. 28 G. Disbursements ................................. 30 H. Accounting and Auditing ......... ................. 30 I. Rcporting and Monitoring ........ ................. 31 J. Environmental Assessment ........ ................ 31 V. ECONOMIC EVALUATION.................... 32 VI. AGREEMENTS AND RECOMMENDATION ..... ............. 35 The project was prepaped on the basis of a prm-appraisalmission in January/Fcbnary 1991 and an appraisal mission in uno /luly 1991 by Moss. A. Nickesen (Mission Leader, Transpott Specialist), S. Demissie (Highway Engineer), J. Gaviria (Transpott Specilist), K. Adarkwa(Transport Econonsti, Consultant), E. Connerley and IL Elison (Decentralization/LocalGovemment SpeciaIsts, Conultants) and S. McCormick (EnvironmentalSpecialist, Consultant). Mr. T. Pankqj (Principal Transpoat Specialist) initiated the project and contributed the rural mobility comnponent.Mess. P. Taylor (Insitutional Specialist, Consultant) ad A. Coleman (ILO, Consultant)asseed the institutionl and labor-based construction components of the project, respectively. Editing was done by Mr. H. Young (Consultant). Mrs. A. Aruaza(Conaultant) provided computing asistance. Secreial work was done by Mrs. U. Raymond. Peer reviewers for the report were Mesrs. 1. Riverson (Transport Economist) and C. Mensckhoff(Principal Transport Specialist). Mesrs. J. Wright and E. Urm are the Division Chief and Director, respectively, of this opeation. This document has a restricted distributionand may be used by recipientsonly in the performance of their officialduties. Its contents may not otherwisebe disclosedwithout World Bank authorization. ANNEXES 2-1 Ministty of Roads and Highways, OrganizationChart 2-2 AdministrativeStructure of Decentralization 2-3 District Planning and CompositeBudgeting Process 3-1 DFR Headquartersand RegionalOffices, OrganizationCharts 3-2 Conditionand Surface Types of Feeder Roads by Region (1991) 3-3 DFR Personnel in Post as of August 1991 3-4 The Road CommitteeSystem 3-5 Experience with Voluntary CommunityLabor 3-6 Road Area Prioritizationand Feeder Road Pre-Selection 3-7 Foreign-ExchangeComparison Equipment/Labor-Intensive Works 3-8 Status of Domestic ConstructionIndustry 3-9 DFR Road Work Accomplishments(1983-1990) 3-10 DFR Expendituresand Sources of Funding(1983-1990) 3-11 Feeder Road DevelopmentProgram (1992-1999) 3-12 Total and Annual Funding Needs for Feeder Road Works (1992-1999) 3-13 Anticipated Financing Plan for Feeder Road Works (1992-1999) 4-1 DFR Equipment Status 4-2 Organizationand ManagementStudy 4-3 MaintenancePerformance Budgeting System 4-4 Monitoring and Evaluation 4-5 RecommendedDFR Organization 4-6 DFR Staffing Requirements 4-7 DFR Staff Training Program 4-8 Domestic ConstructionIndustry Assessmentand DevelopmentStudy 4-9 Rural Mobilityand Environment 4-10 InstitutionalArrangements for District Routine Maintenance 4-11 District Resource MobilizationPotelitial 4-12 Summary and Detailed Project Cost Tables 4-13 Detailed Financing Plan 4-14 Schedule for Processing Procurementand Implementation 4-15 Project SupervisionPlan 4-16 Monitoring Matrix 4-17 Detailed Time-BoundAction Program for DFR InstitutionalStrengthening 4-18 Detailed ProcurementTable 4-19 DisbursementSchedule 4-20 EnvironmentalAssessment 5-1 Economic Analysis 5-2 Listing of SelectedFeeder Roads for Phases 1 and 2 6-1 Documents in the Project File IBRD 23004 Transport System, Project Zones, and ConservationReserves AF4IN November 1991 i REPUBLIC-OF GHANA NATIONALFEEDER ROADSREHABILITATION AND MAINTENANCEPROJECT CREDIT AND PMROJECTSUMMARY Mliorrower: The Republicof Ghana Beneficiaries: Ministry of Roads and Highways(MRH); Departmentof Feeder Roads (DFR) redit Amount: SDR 40.5 million (US$55.0 million equivalent) T&=ms: StandardIDA terms with 40 years maturity ProIect Description: The aim of the project is to support economicdevelopment in rural areas by removingphysical constraintsin feeder road infrastructure,reducing rural tramnmtl'costs for goods and passengers, and supportingfarm productionand marketing. The four year project includesthe following main components: (a) a feeder road rehabilitationprogram to be executed by contract; (b) a feeder road periodic maintenanceprogram to be executed by contract; and establishmentof a sustainable maintenancemanagement system; (c) an institutional strengtheningand support program for feeder road planning, design, supervisionand quality control; (d) a rural mobility and environmentalprogram; and (e) support to DFR to assist in its decentralization. The project will support the goals of the Government's EconomicRecovery Program (ERP) and the Medium Term AgriculturalDevelopment Strategy (MTADS) and will complementthe trunk and cocoa road rehabilitation programs currentlyunderway with IDA financing. PoQjectBenefits and Risks: The main project benefit will be a more efficient and cost effective rural transport system that will stimulateagricultural productionand marketing, aid rural employment. The principal quantifiableprojict benefits are: (a) value added in additionalagricultural production; and (b) reduced transport costs to road users. Key non-quantifiablebenefits
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