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 RoutineMaintenance 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 removing physical constraints in feeder road infrastructure,reducing rural tramnmtl'costs for goods and passengers, and supportingfarm production and marketing. The four year project includes the 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 production and 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 comprise: (a) increaseddirect employmentin the rural economy; (b) improved access to social services through increased rural mobility; (c) improved quality of life especiallyfor women; and (d) environmentalimprovements in terms of reduced soil erosionpotential. There are no major risks associatedwith the implementationof this project. Timely executionof the physical componentsof the project will depend largely on early Governmentapproval of procurementof works and selectionof design and supervisionconsultants. Risks concern difficultiesin developinga sustainablefeeder road maintenance ii system; constraintsin DFR institutionalcapacity; and increases in cost of feeder road rehabilitationworks. These risks will be addressedby obtaining Governmentassurance for adequate and timely funding of routine and recurrent maintenance;by establishmentof a maintenanceperformance budgeting system to be operated by DFR; by DFR staff training, hiring of sflicient middle level professionaland technicalstaff as well as technical assistanceto fill critical positions; and by adoption of cost effective methods of feeder road design and prompt payment to contractorsfor completedwo,ks.
Estimated Proiect Costs Local Foreign Total --- US$ Millions--
A. Feeder Road Proram,
1. Feeder Road Rehabilitation 21.9 17.5 39.4 2. Feeder Road Regravelling 9.8 10.0 19.8 3. Culverts/SpotImprovements 3.6 1.1 4.7 4. Maintenance/WorkshopEquipment 0.3 3.5 3.8 5. Design and Supervision 1.3 1.4 2.7 Subtotal 36.9 33.5 70.4
B. InstitutionalSunport Program
1. ManagementLine Positions 0.2 1.0 1.2 2. TechnicalLine Positions 0.2 1.4 1.6 3. United Nations Volunteers 0.1 0.1 0.2 4. Studies 0.3 0.6 0.9 5. Training 0.3 1.0 1.3 6. ConstructionIndustry Support 0.5 4.1 4.6 7. Rural Mobilityand Environment 0.8 1.1 1.9 8. DFR DecentralizationSupport Q, 6 1.4 Subtotal 3.2 9.9 13.1
Total Project Base Cost 40.1 43.4 83.5 Physical Contingencies 3.8 3.4 7.2 Price Contingencies 5 1 m Lk Total Project Cost 49.0 50.3 99.3 Taxes & Duties , =f6: Total Project Cost (includingTaxes) N5106 tii
FinancingPlan LpS21Foreign Total ----- US$ Millions--
IDA 27.3 27.7 55.0 Government of Ghana (Road Fund and Budget) 8.4 0.0 8.4 USAID 20.0 1.0 21.0 DANIDA 0.0 15.0 15.0 OPEC 0.0 5.0 5.0 Japanese Grant Fund 0,0 li 16 Total SSl
EstimatedIDA Disbursements,
IDA FiscalYear EY92 E FY94 FY5 FY97 --- US$ Millions -
Annual 0.5 11.5 14.9 14.3 10.4 3.4 Cumulative 0.5 12.0 26.9 41.2 51.6 55.0
Economic Rate of Return: 44%, based on quantifiablebenefits from project components covering 76% of total project costs. REPUBLICOF GHANA
NATONAL FEEDER ROADS REHABILITATIONAND MAINTENANCEPROJECI
1. INTRODUCTION
1.01 Inadequacyof feeder roads poses a serious constrainton agriculturalproduction and marketing in Ghana. In many rural areas, transport costs accountfor up to 70 percent of marketing costs as a result of the poor state of the feeder road network. Such costs would decrease substantially if the rural road system wtfu improved. Many fertile farming areas have lost access to markets due to poor roads which hinder mobility and often make head-porteragethe only alternativefor transporting agri.kulturalproduce and inputs. However, headloadingis costly and slow, it constrains labor supply at harvest time, and it contributesto rural poverty. Thus, feeder road bottlenecksarising from prolonged neglect of maintenanceconstrain Ghana's farm production and marketing, factor mobility, exports and most non-farm activitiesvital for economicrecovery and growth.
1.02 Feeder road rehabilitationand maintenanceis a crucial part of Ghana's agricultural developmentand its economicrecovery and growth strategies,to alleviatepoverty and ensure food security. A start was made under earlier IDA trunk road and transport projects to upgrade the maintenanceof feeder roads and to strengthen the Departmentof Feeder Roads (DFR), the agency responsiblefor them. While progress has been made in rehabilitatingfeeder roads in selectedareas and in buildingup the DFR, the main tasks still lie ahead. The restorationof feeder roads and further strengtheningof the DFR will take about a decade of concerted action. The Governmentof Ghana (GOG) has sought IDA's support in designingand implementingsuch a program, and the proposed project would finance the first phase of the program; complementingthe ongoing transport sector operations under the Transport Rehabilitation(TRP-1 and TRP-2) Projects whose main emphasis is on rehabilitationand periodic maintenanceof trunk roads. These projects are needed to rebuild Ghana's road network, and are part of a phased restorationof the transport sector.
11. BACKGROUN12
A. The Country and its MacroeconomicSetting
2.01 Resource Endowment. Ghana is a medium-sizedcountry (239,000 sq km) with a widely scattered populationestimated at about 14 million in mid-1991. More than 70 percent live in rural areas. The country's economicpotential is great: it has vast timber resources, its agricultural possibilitiesare considerableand it was once the world's leading cocoa producer. Mineral resources include manganese,bauxite, gold, and diamonds, and petroleum explorationis under way. In the first decade after Independence(1956), Ghana had one of the highest per capita incomes in Africa, and it had one of the best levels of physical infrastructureand human resources in Sub-Saharan Africa.
2.02 Past PeRformanc. In spite of the country's potential, a continuousdecline in per capita income after the early 1960s increasedabsolute poverty and worsened the income distribution. For two decades prior to 1983 the Ghanaianeconomy was characterizedby (i) a bias in favor of industrialization;(ii) a large but inefficientpublic sector; and (iii) a neglect of agriculture with a decline in agriculturaloutput, even though it had been the country's most importantforeign exchange - 2 - earner. The resulting macroeconomicimbalance led to a widespreadsystem of price and import controls. By 1983, per capita income was half that in 1970, most economicactivity was in the parallel market, physical inftastructure had deterioratedsubstantially, and the bHlanceof payment situation was so weakened that the country accumulatedlarge external debt and payments arrears.
2.03 Present Situation. It was against this backgroundthat the Governmentintroduced the Economic Recovery Program (ERP) in April 1983 in order to (i) re-establishfiscal and monetary discipline as a means of stabilizingthe economy; (ii) restore relative prices in order to improve producer incentivesand encourageprivate sector participationin economicdevelopment; and (iii, rebuild the co-itry's social, economic, and physical infrastructure. The ERP was the most extensive of those attemptedin Sub-SaharanAfrica. Policies in the first three years focused on stabilizingthe economy by reducing fiscal deficits, reducing demand pressure through reduced credit, and stabilizing prices. The reforms of the exchange rate system improved incentivesfor exporters and helped to improve export performance. From 1986, the program moved into the structural adjustmentphase which focused on incentivepolicies, domesticresource mobilization,and public resource management. The Governmenthas also undertakenreforms in specific sectors, particularly agriculture.
2.04 As a result of the fundamentalmacroeconomic reforms implementedsince the launchingof the ERP, the economy expanded. The ERP measures led to an annual growth rate in GDP of 5.3 percent between 1984 and 1988, 6 percent in 1989 and 2.7 percent in 1990 in real terms. This is in sharp contrast to average declinesof 0.9 per cera per annum between 1975 and 1982, and of 4.6 percent in 1983. The reform program has laid the foundationfor long-termgrowth. The civil service has been rationalized,and the financial sector has been strengthenedby the revision of banking rules. Significantresources are being and will continueto be invested in transport infrastructurerehabilitation and maintenance,including trunk and feeder roads, ports, and railways.
B. TheAfricuitural Sector
2.05 Sector Characteristics. Agricultureis the mainstayof the Ghanaian ecinomy, contributingmore than 75 percent of merchandiseexports and about 50 percent of GDP. It employs about 60 percent of the labor force. The sector is predominantlysmallholder, traditional and rain-fed. Farming systems have developedover time as adaptationsto the major agro-ecologicalzones in the country. Mixed cropping to minimizerisks, and the widespreadintegration of livestock into the farming systems are frequent. In the forest zone, importanttree crops are cocoa, oil palm, coffee and rubber, while inter-croppedmixtures of maize, plantain, cocoyamand cassava are the principal food crops. The transitionzone is characterizedby mixed or sole cropping of maize, legunes, cocoyamor yam, with tobacco and cotton as the predominantcash crops. In the savannahzone, main food crops are sorghum, maize, cowpeas and yam in the wetter areas, whilst sorghum, millet and cowpeas prevail in the drier north. Cotton and tobaccoare also important cash crops in this zone. Rice is grown in seasonally flooded valley bottoms. In general, average yields are low throughoutthe country.
2.06 Sector Performance. As with other sectors, agriculture was severely hindered by the economicpolicies of the 1970s and early 1980s. While agriculturalgrowth between 1975 and 1982 declined steadily at about 1.0 percent per annum, and in 1983 decreasedeven further by 4.6 percent due to a severe drought, the decline was reversed in 1984 as a result of improved incentivesbrought about by the ERP. The agriculturalsector is now adjustingto fundamentalchanges in macro- economic policy and the eliminationof a policy bias against agriculture. The growth rate of agriculturalproduction between 1984 and 1988 averagedabout 1.9 percent per annum; in 1989 it was about 5.9 percent and in 1990 it was 1.5 percent. The recovery was brought about mainly by the performance of the cocoa and forestry sub-sectors. The slow growth in agriculture was largely due to continuingstructural impedimentssuch as (i) poor conditionof the road infrastructure;(ii) weak marketing systems; and (iii) the poor state of agriculturalsupport services.
2.07 GovernmentObiectives. GOG's long term objectivesfor the sector includefood self sufficiencyand security, higher employmentand incomes in rural areas, regional balanced growth and a larger contributionof the sector to GDP, foreign exchangeearnings and governmentrevenues. Agriculturewill contintueto be the mainstayof the economyfor the foreseeable future. The country has the potentialto use its agriculture as the basis for sustainedeconomic growth and development, given its immenseagricultural resource base. The key to realizing this potential lies in providing an enablingenvironment for private producers by: (i) continuedliberalization of prices; (ii) increasing access for the private sector to markets and agriculturtl inputs; (iii) raising agriculturalproductivity through a vigorous and responsiveagricultural services system; (iv) encouragingmore efficient processing, storage and marketingsystems; and (v) improvingfeeder road and other transport infrastructure.
2.08 Sector Strategy. To achieve these objectives, GOG and the Bank have prepared the Medium Term AgriculturalDevelopment Strategy (MTADS). This strategy is based on the premise that Ghanaian farmers will respond to suitable incentivesto increaseproduction of both food and cash crops. The strategy uses simultaneousimplementation of export promotion(tree crops and fisheries) and import substitution(cotton, maize, rice and meat). It is intended to: (i) improve the agricu!tural policy and marketing framework allowing prices to be market based, introducinggreater marker efficiency and increasinginvestment in marketing infrastructure(including feeder roads and drying and storage facilities); (ii) strengthen agriculturalsector coordination;(iii) establish a frameworkfor improved allocationof public sector resources; and (iv) improve the focus on poverty alleviationand the environment. In order to overcome the sector specificpolicy and structural impediments,GOG is presently preparing an AgriculturalSector AdjustmentProgram (AGSAP)with IDA support. This program is in line with the MTADS and will support it.
C. The Tranpoll Sct
2.09 Sector Overview. Key elementsof Ghana's transport system are: (i) a networkof about 14,400 km of trunk and urban arterial roads and about 21,300 km of feeder roads; (ii) an over- aged road fleet of some 130,000 vehicles; (iii) a 950 km railway system linking Accra, Tema, Kumasi and Takoradi; (iv) deep-waterports at Tema and Takoradi; (v) an inland water transport systemon the Volta Lake; (vi) an internationalairport at Accra and domestic airports at Kumasi and Tamale; and (vii) a national airline providing internationaland domesticservices. Road transport is the dominantmode in the system, and about 90 percent of it is operated by the private sector, with easy market entry and little governmentregulation of its operations. Ports, lake transport, railways and civil aviation are dominatedby the public sector. Though it intervenedon a large scale in the transport sector in the past, GOG now clearly favors st.engtheningprivate sector operations, streamliningand reorganizingpublic transport enterpri.;>, and privatizing many of them.
2.10 Str Qbjectives. Government's primary sector objectives emphasize (i) rehabilitationand maintenanceof existingtransport infrastructurein a phased program, with a minimalamount of new construction,and (ii) strengtheninginstitutions in the sector. The network of trunk and rural roads is by far the most importantpart of the transport system. Though recent projects are gradually improvingroad conditions,particularly for the trunk roads, the overall road - 4 -
network is still in a generally poor sate. It therefore needs the largest share of resources and the longest period to regain capacity.1/
2.11 Road Administration. The Ministry of Roads and Highways (MRH) and its three agencies, Ghana Highway Authority (GHA), DFR and Departmentof Urban Roads (DUR), are the organizationswhich plan and implementroad construction,rehabilitation and maintenance. MRH was set up in 1982, as a separateministry in charge of roads and highways, with a nucleus of technical staff that reports to the Secretaryof Roads and Highways. GHA was establishedin 1974 as an autonomousbody with its own Board of Directors appointedby the Government,but the Board has recently been replaced by an Interim ManagementCommittee. GHA has a staff of some 6,500 spread over the central office in Accra, 10 regionaloffices and 32 road area offices. It also has a central workshopand a number of smal! regional workshops. GHA has 70 engineers, 60 technician engineers as well as some 670 technicaland supervisingstaff. DFR and DUR were establishedin 1981 and 1983, respectively, and function as civil service agenciesunder MRH. DFR staff includes 36 engineers, some 40 other professionalstaff and 330 technicalpersonnel. It maintainssmall offices in all regions and in 10 road areas. DUR has a staff of about 200, including 10 engineers and offices in the main cities, where it works with th- city councils. Annex 2-1 shows the organization chart of MRH.
2.12 InstitutionalAchievements and Requirements. The most importantachievements in recent transport and road projects include: (i) implementinga phased 10-yearprogram (1988-1997)to rehabilitateand maintain the trunk road network, and start of work to organize feeder roads planning, rehabilitationand maintenance;(ii) strengtheningMRH, GHA, DFR and DUR through technical assistancein key areas and through training; (iii) reducing the share of force account works carried out by direct departmentallabor; (iv) setting up a Road Fund to ensure the regular flow of funds to the agenciesand contractors; (v) starting pilot projects for introduc.inglabor-intensive rural road rehabilitation;and (vi) improvingcontractor capacity through sub-loans for equipmentand spare parts, training, competitivebidding for all works, and ensuring prompt paymentsto contractors. The main institutionalsupport needs which remain in MRH, GHA, DFR, and DUR are: (i) technical assistance in specializedareas where local engineersare not available; (ii) an enlarged inter-agency training program to improve existingstaff skills and to train newly graduated engineers; (iii) incentivessuch as housingfor key officials and food aid through the World Food Program (WFP), which has helped to improve productivity;and (iv) training and advice to domesticcontractors and consultantsto fuither improve their technicaland managerialefficiency. The ongoing First and SecondTransport RehabilitationProjects and the SecondUrban Project provide such support to MRH, GHA, DFR and DUR; additional support for DFR will be provided through this project.
2.13 DIomesticContracting and ConsultingIndustries. With the increasedroad rehabilitationand maintenanceworks financedunder ongoing road and transport projects, the domesticcontracting and consultingindustries are developingwell. There are some 145 local road contractorsclassified by the Governmentin categoriesAl to A4 accordingtc capacity, some 310 small bridge and strictures contractors(classifications Bi to B4), and some 47 labor-intensivelocal road contractors classifiedas class C. Previous projects have included substantialprovisions for lines
1/ More detailed informationon Ghana's transport sector was given in SAR-6921GH for the First Transport RehabilitationProject (TRP-1), presentedto the Board on May 27, 1988, updated in SAR-8945-GHfor the SecondTransport RehabilitationProject (TRP-2), presented to the Board on December 13, 1990. The followingpresentation concentrates on road sub- sector issues which are of relevance to feeder roads. - 5 -
of credit and technical assistanceto strengthendomestic contractors. The economicreforms implementedin the country includingforeign exchange1 .eralization, have enabledcontractors to have easy access to foreign exchangefor spare parts and equipment. They have also encouragedthe return of Ghanaian engineers to Ghana, particularlyto consultancyfirms which, often with foreign cour.-rparts, are undertakinga substantialshare of trunk and feeder road engineeringdesign and constructionsupervision. There are at present some 12 local consultingfirms working on road projects. In addition, a large number of foreign contractorsand consultantsare active in Ghana's road sub-sector.
2.14 R-oadSub-Sector Strategy. The Governmentstrategy for road rehabilitationand maintenancerecently evolved into two separate branches, one for trunk roads and another for feede roads. A trunk road network stabilizationplan supported by the TransDortRehabilitation Priects (r1RP)was developedin 1987, with the aim of clearing the backlog of rehabilitationand periodic maintenancerequirements on paved and gravel roads during the 1988-1997period. The purpose of the plan is to stabilize the trunk road network conditionat an acceptable70% good and 30% fair or poor ratio, thus almost reversing the ratio prevailing in 1987. On the basis of the stabilizationplan, the 1988-1997requirements for trunk roads total about 11,300 km of rehabilitationand periodic maintenance,and some 1,500 km of reconstructionand upgradingworks.
2.15 Feeder road rehabilitationand maintenancebecame relatively well organized around 1986/87after DFR became a stronger organization. So far, the feeder road program has concentrated on: (i) rehabilitationof cocoa roads (trunk and feeder roads in cocoa growing areas) under the ongoing Cocoa RehabilitationProject; (ii) rehabilitationof non-cocoa feeder roads on a selective basis; and (iii) introductionof a successfullabor-intensive road rehabilitationprogram based on light equipment and contractor training and support. IDA has assisted DFR in these activities and in preparing a long-term rural road strategy. To support its MTADS, the Government,with IDA and other donor support, has recently prepared a 7 year National Feeder Roads DevelopmentProgram (NFRDP) for the mid-1992to mid-1999period. This project will be the first 4-year slice of this program, starting in early 1992 and concentratingon institutionalstrengthening, feeder road rehabilitationand maintenance,and establishmentof a sustainablemaintenance performance budgeting system involvinglocal governmentsin the districts and local wmnunities for routine maintenance.
D. GovernmentDecentralization Policy and Strategy
2.16 Despite a long and complexhistory of attemptsto decentralize governmentin Ghana, the Governmentremains highly centralizedin Accra. Decentralizationhas been an announced, high priority policy objective of the Provisional NationalDefense Council(PNDC) since 1983. Previous Governmentshave also sensed the need to improve governmentperformance through a variety of decentralizationschemes. In large part, these efforts had failed to achieve their objectivesin the past.
2.17 The principal recent accomplishmentof the PNDC Government with respect to its intent to decentralize has been the enactmentof PNDC Law 207, the 'Local GovernmentLaw of 1988." Law 207 deals with virtually every aspect of local governmentsuch as RegionalCoordinating Councils, District Assembliesand MetropolitanAuthorities. However, its primary focus is on district governments, whose powers are greatly enhancedthereby.
2.18 PNDC Law 207 defines some of the key mechanismsby which the Government intends to decentralize its operations. The primary strategy is to devolve the central government's administrativeand political authority to local levels (i.e. regions, districts, towns and villages), with - 6 -
the District Assembly being the centerpieceof administrativeand political authority. Among the principal functions of the 110 district governmentsare the following:
- Supervisionof the field operations of twenty-twocentral governmentdepartments;
- Responsibilityfor overall developmentof the district;
- Preparationand submissionof annual developmentplans and compositebudgets to the PNDC (via Regional CoordinatingCouncils);
- Formulationof programs and strategiesfor mobilizingand utilizing district human and financial resources;
- Promotion and support of productive activity and social development;and
- Initiationof programs for the developmentof basic infrastructure, municipalworks and services.
2.19 PNDC Law 207 mandatesthat District Assembliesshall have administrativeand financial control of the district-leveloperations of twenty-twodepartments of the central government, includingthe DFR. For all practical purposes the staff of the District Assemblywould therefore include not only core officers of district administration,but also all civil service employeesof the twenty-twodepartments. The administrativestructure of decentralizationcontemplated by PNDC Law 207 is described in Annex 2-2. Annex 2-3 contains a summaryof the district planning and compositebudgeting process.
2.20 To date, no departmenthas transferred budget administrationto direct district control. Some departmentshave begun to place staff under district supervision,particularly those that were already involved in local operations prior to Law 207. For instance, the Departmentof Community Developmenthas officers in each District Assemblyheadquarters who are supervisedby District Secretaries. However, this departmenthas not yet decentralizedits budget.
2.21 Numerousdelays in implementingkey aspects of Law 207 should not be interpreted as a lack of interest. Implementationis slow precisely because it involvesvery significantshifts of authority and resources, primarily from the ministries and departmentsto the districts and District Assemblies. Nevertheless, many officialsbelieve that the commitmentto decentralizationis irreversible.
2.22 The principal objectivesought by the PNDC through decentralizationis to place political and professional supervisionas close to implementationas possible. The PNDC believes that there is currently little linkagebetween politicalleadership and implementationactivities. In the process of decentralizationit is hoped that the current vertical linkages, which run on departmental and ministerial lines, will be broken down and replaced by a combinationof direct vertical linkages to the PNDC and better horizontal linkages across departmentsat the district level. It is hoped that this will speed up decision-making,while leaving the ministrieswith policy formulation, project monitoring and evaluation. - 7 -
E. Bank Group Assistancein Agricultureand Roads
2.23 In additionto the support for the ERP through the MTADS and its AGSAP, a number of projects have been financedwithin the agriculturalsector to overcomeparticular constraints. These include the Second Oil Palm Project (Credit 1498-GHin 1984) and the Cocoa Rehabilitation Proiejt (Credit 1854-GHin 1988, comprising a large cocoa roads component),to provide a broad spectrum of support to the oil palm and cocoa sub-sectors;the AgriculturalServices Rehabilitation Project (Credit 1801-GHin 1987), to develop a range of agriculturalservices; the Rural Finance Proe (Credit 2040-GH)to improve the efficiencyof financial institut;ons;and the Agricultural DiversificationPrgiect (Credit 2180-GH in 1990), to promote the production of tree and horticultural crops, and gradually reduce Ghana's over-dependenceon cocoa. Support to the forestry sub-sector is being provided through the Forest Resource ManagementProject (Credit 1976-GHin 1989). A National AgriculturalResearch Project has recently been approved. The key element in all these projects is the developmentof the role of the private sector in agriculturalproduction and input supply.
2.24 In the roads sub-sector, apart from an engineeringcredit for US$1.5 m in 1969 for the preparation of road projects, the Bank Group has provided four highwaycredits (one credit/loan combined),two transport credits, and two urban credits with road components. The First Highway Uroiec (Credit 438-GH for US$13.0 m in 1974) was completed in early 1981 while the Socond Highway Project (Credit 594-GH for US$10.0 m and Loan 1182-GHfor US$18.0 m in 1975) was completed in 1983. The Third HigihwayProject (Credit 1029-GHfor US$25.0 m in 1980) was fully disbursed by late 1986. These three projects were completedfive, four, and three years, respectively, behind the SARs' estimated completiondates. The projects focused on trunk road rehabilitationand maintenance;institution building of GHA; and developmentof domesticconstruction and private trading industriesthrough provision of funds for the purchase of equipmentand spare parts on an on- lending arrangementthrough the Bank for Housing and Construction(BHC).
2.25 The main conclusionsfrom experiencewith these early road projects covering the period from 1974 to 1986 (based on audit completionreports) were that: (a) the objectiveswere sound but the targets for almost all componentswere unrealisticallyhigh because negative aspects of the economicenvironment were either discountedor overlooked; (b) targets for institutionalbuilding were only partially met mainly because they were over-optimisticcompared to the prevailing conditionsand Governmentcommitment; (c) the domestic constructionindustry benefitted through carrying out small civil engineeringprojects, though some contractorsdid poorly because works awarded to them were beyond their technical and financial capacities;(d) the difficult economic conditionsof the country and implementationdeficiencies slowed down progress; and (e) all projects have suffered from inadequatelocal fundingand from shortage of foreign exchangeneeded to enable the Governmentto fulfill local financialobligations.
2.26 Since the first three highwayprojects, the Bank Group has provided funds for the Road RehabilitatiQnand MaintenanceProiect (RRMP) (CR 1601-GHfor SDR 40.4 m, with additional CR A-1GH for SDR 10.1 m from the Bank's Facility for Sub-SaharanAfrica, and cofinancedby Japanese Grant 1601-IGH for Yen 100.0 m, African DevelopmentBank, UNDP and MFEP in 1985); the First Transport RehabilitationProiect (TRP-1) (CR 1858-GHfor SDR 46.9 m in 1988); and the Second Transport RehabilitationProject i RP-2) (CR 2192-GHfor SDR 69.0 m in 1991). RRMP was closed on June 30, 1991; TRP-1 funds are 90% committedas of June, 1991; and TRP-2 became effective in May, 1991. These three projects vary in their compositionof componentsas follows: RRMIPconsisted of civil works for trunk and feeder roads; training; support to local contractors; and consultantand TA assistance;TRP-1 consistsof civil works for trunk and feeder roads; bridges; -8-
railway rehabilitation;support to transport sector institutions;pilot programs for road transport and rural transport; and support for infrastructureplanning; and TRP-2 consistsof civil works for trunk roads and bridges; support to the MRH; railway rehabilitation;support to transport sector institutions; and a Northern Region pilot scheme.
2.27 RRMP was closed after a one-year extensionand the credits were fully disbursed. Physical targets were 70% achieved;policy and institutionalobjectives have been achieved; the contracting system was reformed; full competitivebidding was established;domestic contractorsand consultants' capacity have increased; and the feeder roads labor-intensivepilot program proved to be successful. Implementationof TRP-1, after a slow start, is now progressing well. Accomplishment of trunk road rehabilitationand maintenanceworks will be less than the SAR target because of substantialincreases in cost per km due to further deteriorationin the conditionof the roads. The increasingbacklog in physical works will entail increaseddeterioration in road conditionsrequiring more rehabilitationwork rather than the periodic resealingand resurfacing works stipulatedunder GPA's trunk road network stabilizationprogram. Start-up of TRP-2 was about six months behind the agreed implementationschedule, mainly due to the time taken by the Governmentin approving procurement. The linkages between the lessons learnt from completedand ongoing road projects and the design of the feeder roads project are discussed in paras. 4.30 and 4.31.
2.28 Measures for simplifyingthe procurementapproval process were announcedat the Akuse II meeting in May 1991 and confirmedat the infrastructuresector implementationreview held in Accra in July 1991. Once these measures are implemented,progress of the TRP projects is expected to improve. The Accra District RehabilitationProject (Urban-I) (Credit 1564-GHfor SDR 22.5 m in 1985) included,inter alia, new constructionof the ring road in Accra which has been completed. The Second Urban Project (Urban-2) (Credit 2157-GHfor SDR 53.7 m in 1990) became effective in May 1991. This project includes, inter alia, reconstructionand upgrading of selected urban road sections in Accra.
HI. FEEDER ROAD CONSTRAINTSAND STRATEGY
A. Feeder Road Organization
3.01 Feeder Road Administration. Prior to the establishmentof DFR in 1981, feeder roads were the responsibilityof various agencies includingGHA. At present, feeder road planning, construction,rehabilitation and maintenanceare the sole responsibilitiesof DFR. Annex 3-1 shows the existingorganization of DFR headquartersand its regional offices. Since its creation, DFR has been actively supportedas the focal point for feeder road development. This support has been through (i) technical assistanceand training; (ii) settingup a Road Fund shared with the trunk road program to improve resource availability;(iii) training and supportinglabor-based contractors for feeder road rehabilitation;(iv) executingmost feeder road rehabilitationworks through local contractors; and (v) expandingthe role of local consultantsfor engineeringdesign and works supervision. IDA has supportedthese efforts through feeder road componentsin three recent transport and road projects.
3.02 Network Conditionand Surface Types. Althoughexisting policies have already resulted in an enhancementof the DFR role, the overall conditionof the feeder road network remains poor. At present, only 16 percent (some 3,300 km) of feeder roads are in good condition, constitutingDFR's maintainablefeeder road network. Roads in this categorywere rehabilitated - 9 -
between 1983and August 1991 and are being maintainedto the extent present funding levels allow. Of the remainder, 24 percent (5,100 km) of the network is in fair condition, and 60 percent (12,900 kin) is in poor or very poor condition. Only 39 percent (8,300 km) of the network is gravel-surfaced while 60 percent (12,600 km) consists of earth roads. The amountof bitumen-surfacedfeeder roads (300 km or I percent) is negligible. Annex 3-2 shows the conditionand surface types of Ghana's feeder road network by region as of August 1991. This conditionmix and DFR's limited absorptive capacity indicate the need for a concerted effort to step-up physical rehabilitationand establish a sustainablefeeder road maintenanceperformance budgeting svstem.
3.03 Feeder Road Issues. With Bank and other donor support, and with active GOG backing, DFR has become an importantagency, but its organizationis not yet fully developed. Any large expansionof DFR's activitiesmandates a close examinationof its present capacity and constraints. Feeder road rehabilitationand maintenanceon a larger scale will require: (i) buildinginstitutional capacity; (ii) establishinga sustainablemechanism for district routine maintenanceorganizations; (iii) expandingDFR's feeder road planningand selection capacity to integrate future rehabilitationand maintenanceactivities, in agreement with national, regionaland district governmentpolicies; (iv) reachinga consensuson design and technologychoices; and (v) developinga medium-termfeeder road developmentprogram includingits funding. These issues are dealt with in the following.
B. InstitutionalCapacity
3.04 InstitutionalStructure and Staffing. Country-widefeeder road works require substantialpreparation and supervision. DFR is a young organizationwhich operates at four levels in: (i) the head office in Accra, (ii) 10 regional offices in the regional capitals, (iii) 10 out of 32 road area offices, and (iv) some 30 out of 110 districts. Improvementin some critical areas is essential. While staffing levels for DFR are generally appropriate, out of 67 engineeringposts, only 34 (51 percent) are filled. Experiencedmiddle level engineers are in particularlyshort supply. Only 33 percent of principal engineers' positions are occupied, and 6 percent of senior engineers' posts are filled. In the regional organization,only 42 percent of positionsfor engineers are occupied. The need for engineers must be met if DFR is to fulfill its role as the focal point for feeder road development in Ghana. Pay conditionsdo not comparefavorably with GHA or the private sector, and civil service policies provide inadequatesalary differentials. There is also a lack of trained accountants, and career opportunitiesfor technicianengineers and quantitysurveyors are poor. Annex 3-3 gives details of DFR's 1,430 personnel at post as of August 1991.
3.05 OrganizationalIssues. DFR top managers are qualified, experienced,and well motivated. Their enthusiasmdoes much to engender the good level of morale in the organization. The distributionof headquartersmanagement responsibilities for differentoperations is sound and efficient. The current division of responsibilitiesbetween the maintenanceand developmentdivisions appears appropriate. Work loads are allocatedflexibly and distributedevenly, and no changes are needed. Recently, more emphasis has already been placed on feeder road planning and selection, and integrating feeder road rehabilitationand maintenanceinto trunk road and agriculturalpriorities. A DFR organizationalstudy which was conductedfor the preparationof this project recommendedthe creation of a separate planning division. Also, a maintenanceperformance budgeting system will be developedunder the project to ensure that every feeder road once it has been rehabilitatedis followed up by systematicmaintenance. The managementstructure of the three-levelregional organization (regional, road area, and district offices) was considered adequateby the organizationalstudy. However, DFR needs to achieve staffing levels, especially in terms of engineeringcapacity, that will - 10 - enable it to design and superviseall of its labor-basedworks while it will continueto rely on consultantsfor the design and supervisionof all other contract works.
3.06 RegionalOperation. At the regional level, DFR engineers serve as chief advisors to the Regional Secretaries, and coordinatethe distributionof resources among road area offices. A regional engineer is backed by one additional road engineer, and five regions already have an additional engineer to oversee labor-intensiveoperations, includingBrong Ahafo, Ashanti, Western, Eastern and Northern Regions. The regionalengineer is also in charge of distributingthe services of the DFR-supportedMobile Repair and Maintenance(MOREMAT) units among the road area offices in the region. MOREMATunits are force accountoperations which execute emergency repair and heavy blading works. The programmingof MOREMAToperations requires trained engineers as well1 as an equipmentmaintenance program. Most communitiescontribute to the operation of MOREMAT units in the form of diesel for graders and trucks, and food and accommodationfor equipment operators.
3.07 Field Offices. Each road area office serves between 3 to 4 districts. At present, only 3 area offices are well established, and 7 are partially established. DFR endorses the need for a total of 32 road area offices to coordinate work in the 110 districts, and to support GOG's decentralization policy. Each area office will be in charge of an averageof 650 kilometersof feeder roads. Each of the already establishedarea offices has one technicianengineer who represents DFR at the district level and is expected to become an advisor to the District Secretaryand the District Assembly for prioritizing and costing feeder road recurrent and routine maintenanceactivities. Once the MOREMATunits are transferred from the regionalto the area offices, each technician engineer will require training to program the activitiesof MOREMATin coordinationwith the regional engineer. Only three office buildings out of the existing 10 area offices are consideredadequate. Three area offices have a vehicle each, and 7 others are expectedto receive a vehicle each shortly. A foreman has been assignedto each of 30 district offices to implementroutine maintenance. Presently, DFR- supported force accountSpot Improvementand Maintenance(SIAM) units are partially operational in 35 to 40 districts only. Road committeeshave been establishedin some 36 districts. However, the coordinationof these road committeeshas proven difficult. Annex 34 describes the road committee system while Annex 3-5 summarizesDFR's unsatisfactoryexperience with voluntary community labor.
3.08 InstitutionalStrategy. The Bank, in coordinationwith other donors, needs to continue its support of DFR as the focal point for feeder road policiesand operations in Ghana. Interagency coordinationwith the Ministries of Agriculture (MA) and Local Government (MLG), GHA, the EnvironmentalProtection Council (EPC) and district authoritieswill also be improved. Expansionof DFR will emphasizea build-up of maintenancecapacity. At the Head Office, a planning unit was created two years ago and will be upgradedto a division as a conditionof credit effectiveness. The appointmentof a deputy director of planning, not later than December 31, 1992 is a requirement for this project. Some 20 new road area offices will be established,starting July 1, 1992, as maintenance activities are expanded. These issues were agreed during negotiations.
3.09 All 110 districts require arrangementsfor routine maintenance. DFR capacity expansionat that level will follow Government's decentralizationobjectives by expanding its technical support to the districts and, starting from July 1, 1992, as needed train about 80 additionalforemen for the supervisionof district feeder road maintenanceactivities. Ihis was agreed during negotiations. Even though DFR has made impressiveprogress in training labor-based contractorsand its own staff, overall training capacity of DFR needs to be strengthened. Training is needed at all levels, includingtechnician engineers, equipmentoperators, foremen and labor-based contractors. -11 -
The provision of permanentfacilities and staff at the training school at Koforiduawill allow it to perform this function. This school will be strengthenedunder the proposed project to become the West-Africanequivalent of the East-Africanlabor-based training school in Kisii, Kenya.
C. District Routine MaintenanceOrganization
3.10 DFR has historicallyrelied on unpaid communitylabor to accomplishfeeder road routine maintenance. It has supplied tools and technical supervisionto volunteer laborers mobilized by the multi-tieredroad committeesystem. Technicalsupervision is provided by DFR foremen based at the districts. Where it has proven difficult to mobilizesufficient and reliable voluntary labor, food aid has sometimesbeen given to laborers. However, a fully implementedcommunity routine maintenancesystem exists in no more than ten percent of the districts and has generally failed to provide sustained, timely routine maintenance. There are not enough foremen availableand communitiesin these districts are inconsistentin volunteeringthe required labor.
3.11 Communitysupported routine maintenanceis, in theory, backed up by DFR force accountSIAM units based at the road area level. These units include mobile culvert gangs, backlog routine maintenanceteams and towed grader teams. However, SIAM units are in place in only twelve of the thirty-two road areas and are often the primary providers of routine maintenancerather than providing backup to communityefforts. Recurrent maintenancewill continueto be provided by DFR force account MOREMATunits, with the supportof towed grader teams from the SIAMunits. Graders for a nation-wideMOREMAT system have been procured, but staffing and training of grader operators lags behind the availableequipment. This will be rectified under the proposed project.
3.12 Apart from a number of problems described above, the intendedroutine and recurrent maintenancesystem, with the exceptionof reliance on voluntary communitylabor, seems to be reasonably well designed and attainableover the intermediateterm (5 years). Progress in resolving many of the identified problems is evident.
3.13 The most prominentgaps in the intendedroutine and recurrent maintenancesystem have occurred at the district level. These gaps are the result of both a failure to effectivelyimplement the intendedsystem in many districts, and failures of the system to perform successfullywhere implemented. Therefore, the early stages of this project will include efforts to develop and test alternative institutionalarrangements for district-levelorganization and finance of routine maintenance.
3.14 Because of the apparent variety in district circumstancesand the lack of experience with successfulroutine feeder road maintenancein Ghana, no single "blueprint"for the organization of routine maintenancecan be offered. Each district must be taken as somewhatunique until the circumstancesof the districts and the requirementsof successfulroutine maintenanceare better known. When the circumstancesand requirementsare better known, it is unlikely that a single, standard model of routine maintenanceorganization will be adequate.
3.15 Appropriate systems for the organizationand financing of sustainableroutine feeder road maintenancewill be developed as follows:
(a) District Assemblieswill be responsiblefor routine and recurrent feeder road maintenancein accordancewith the Government's expresseddecentralization policy and PNDC Law 207. This project will provide technical assistanceto support DFR's - 12 -
decentralizationand the strengtheningof routine maintenanceplanning, contracting, supervisionand financial managementcapacities of the involved districts;
(b) Central Governmentwill ensure financial sustainabilityof routine and recurrent maintenanceby granting sufficientfunds in a timely manner to the 110 districts for a four year period until end 1996, starting early 1993. Grants will cover 100 percent of estimated costs of routine and recurrent maintenance. DFR has already prepared detailed cost estimatescomprising all maintainabl feeder roads in each of the 110 districts. Only after a thorough assessmentof the resource mobilizationpotential in each district would Central Governmentbe able to decide to what extent individual districts would be expectedto contributeto future feeder road maintenancefunding. Until such time full routine and recurrent maintenancefunding is expected to come from Central Governmentbudget resources;
(c) Specific arrangementsfor the organizationand eventual financingof sustained routine maintenancehave been identifiedas (i) combinedrehabilitation and maintenance contracts, (ii) single man contractors, (iii) labor-based contractors, and (iv) contracting with intermediarygroups. The relative effectivenessof each of these arrangements will be evaluated in the first two and one-half years of the project in an experimental program in up to eight "pilot' districts.
D. Feeder Road Planning and Selection
3.16 Feeder Road Planning. The proportion of feeder road expendituresto total road expenditureswas around 17 percent in recent years. This compares favorably with other countries in the region. However, there is no firm mechanismto split expendituresbetween rehabilitationand maintenancefor feeder roads, since planning so far has largely been limitedto rehabilitation. In past years, planning for feeder roads was limitedto the preparation of annual work programs by DFR, based on urgent requests from field offices and local communities. Planning capacityhas been bolstered as part of TRP-1 with the creation of a planning unit, which has focused initiallyon developingplanning methodologiesand criteria for feeder road selection and economicanalysis. Selectionand design methodsfor labor-basedroad works have also been introduced. Good cooperationwith the planning unit in the Ministryof Agriculture (MA) has been achieved.
3.17 Regional and District Planning. At the regional level, DFR has developeda prioritization mechanismfor road areas in close coordinationwith MA, and has agreed to focus future investmentsin road areas with high to medium agriculturalpotential. Within each region, network based planning is beginning to be coordinatedwith rehabilitationworks in the trunk road networkto ensure linkage to feeder roads, coordinationthat until recently was only coincidental. At the district level, DFR has developedand implementeda methodologyto pre-select and evaluate teeder roads on a corridor basis based on economic criteria. The methodologywhich consistsof pre-selectionand final economicevaluation includes substantiallocal participation. Local constituenciesare involved at the pre-selectionstage. DFR has started operationalizingthis methodologyin 16 road areas which have been selected for this project. Annex 3& describes the road area prioritizationand feeder road pre-selection methodologies.
3.18 PlanninggStIa1g. DFR will adopt a multi-tieredplanning and programmingsystem allowingthe participationof local constituenciesin the districts. The existingplanning capacity, limited for the most part to route selection, will evolve into a system that allocates resources for feeder road rehabilitationand maintenanceat the national, regional, road area and district levels. - 13 -
DFR managementwill develop targets for an adequatesplit of resources between rehabilitationand maintenance,ensuring linkage to trunk road rehabilitationand maintenanceactivities. Given the present conditionof the feeder road network, most expendituresare concentratedon rehabilitation. However, in the future, DFR is expectedto substantiallyincrease allocations for maintenance. Regional distributionof resources will continueto be linkedto the priority areas set by the MTADS. The prioritizationof road areas will continueto be reviewed by the planningunits in MA and DFR in the context of national priorities. In the short term, DFR is expectedto concentraterehabilitation investmentsin districts with high agriculturalpotential. In the long term, DFR's rehabilitation activities will expand to cover other districtswith medium agriculturalpotential.
3.19 Local planningrequires involvementof local constituenciesfor the selectionof feeder roads and for increasedaccountability and communityparticipation in routine maintenanceactivities. The road selectionprocess will formalize the methodologystarted with the preparation of this project, includingpre-selection and final economicevaluation. A maintenanceperformance budgeting system to program maintenanceactivities will be developedand implementedas part of project activities. A consolidatedframework for network based planningand budgetingis needed so that maintenance requirements are considered along with those of rehabilitation. Planningfor feeder roads will evolve into a system using these methods and criteria as well as involvingkey constituenciesat the center (GHA and MA), and at the regional and district levels (District Assemblies).
E. D-esignand TechnologyChoices
3.20 Design Standard. In the past, the emphasison the conceptof "design speed" and overly wide roadways resulted in unnecessarilyhigh standardsand excessiveconstruction and maintenancecosts. Serviceabilityand durabilityare now receiving greater emphasis in design. The former emphasizesall-weather access as against speed and riding comfort. DFR has already establishedthree feeder road standardswith formation width of: (i) 5 m for Average Daily Traffic (ADT) of 10 to 20; (ii) 6 m for ADT of 20 to 50; and (iii) 7 m for ADT of 50 to 100. Gravel layer thickness ranging from 10 to 15 cm for sub-base and surface courses is considered sufficientfor feeder roads. The thicknessvariation from 10 to 15 centimeterswill depend on subgrade materials, traffic density and axle loads. Geometric design standardshave also been specifiedfor horizontal and vertical aligments and maximumgradient, taking into account the need to minimizeearthworks by following as much as practical the existing alignments. Durability is being introducedas a design concept during the training of domestic contractors,thus giving more attentionto compactionand road drainage requirements.
3.21 Choice of Work Methods. In the past, the use of capital-intensivemethods for rehabilitationand maintenanceof roads has sometimesbeen plagued with frequent equipment breakdowns, delays in procurementof equipmentand spare parts, and foreign exchangeconstraints. In response, GOG and DFR, with assistancefrom IDA and technicalassistance from the United Nations DevelopmentProgramme (UNDP) and the InternationalLabour Organization(ILO), have successfullydeveloped a labor-based contractorpool. After a pilot project and four subsequent training courses, 47 contractorswill be trained by the end of 1991 to conduct labor-basedworks with a potential output in feeder road rehabilitationof some 1,000 to 1,200 km per year. These labor- based works have proven technicallvand economicallyviable. In addition, there appears to be sufficient labor availablein most rural areas in Ghana.
3.22 The technologyhas key advantagessuch as: (i) costs are between 15% to 20% lower than the capital-intensivemethod; (ii) about 10 times more employmentis generated; (iii) foreign exchange costs are reduced; (iv) multipliereffects help the rural economy;and (v) the communityis - 14 -
involved. A small contractor using appropriate low-costequipment for labor-intensiveworks employs between 150 and 200 workers daily and rehabilitatesabout 2 km of feeder road per month or 25 km per year.
3.23 Annex 3-7 contains a detailed foreign exchangecomparison between the capital- intensive and labor-intensivework methods for a standardizedkm of feeder road. The analysis was carried out on a work item basis, separatelyfor the four principal feeder road operations DFR undertakes: (i) rehabilitation; (ii) regravelling; (iii) spot improvementand reshaping; and (iv) culverting. The key result of the analysisis that on average, the labor-basedtechnology requires less than 50 percent foreign exchangecompared to the capital-intensivework method.
3.24 The continueddevelopment of private domestic contractorsfor road works of acceptablequality requires further assistanceto the industry which will be provided under this project. Support and training is needed to increase the number of technicallyand financiallyviable domestic contractors. In addition, the performanceand sustainabilityof all types of domesticcontractors need to be monitoredproperly and regularly. Some labor-basedcontractors may lean towards more equipment-intensiveoperations while capital-intensivecontractors may start to compete for labor- based works. Annex 3-8 contains a summary of the status of Ghana's domestic constructionindustry includingits performanceproblems.
3.25 Force Account versus Contract Qperations. DFR's objective is to continue executing rehabilitationand periodic maintenanceworks by contract. Routinemaintenance operations on feeder roads by force account are severely limitedand are presently executedby SIAM units only. Emergency repairs and heavy blading to restore basic access will be continuedusing the MOREMAT units which are being expandedwith the arrival of 70 new graders. Communitieshave been encouragedto contribute labor to the SIAM units with mixed results. Mechanismsfor involving communitiesin feeder road routine maintenanceneed to be further strengthened,which will be done under this project.
F. Feeder Road DevelopmentStrategy
3.26 Past Physical Achievements. Between 1983 and 1990, some 2,700 km of feeder roads were fully rehabilitated. DFR relied mainlyon domesticcontractors for these works. Some 1,413 culverts were constructed,reconstructed or extended;some 7,070 km of roads reshaped; and some 2,310 km regravelled. While regravelling was mostly by contract, reshaping and culvert constructionwere executed by force account (MOREMATunits). Substantialincreases in feeder road rehabilitationworks have taken place over the last 2 to 3 years. An additional900 km of feeder road rehabilitation is ongoing and will be completedby the end of 1991. This will bring the total of fully rehabilitatedfeeder roads, defined as the maintainablenetwork, to 3,600 km by end-1991. Annex 3-2 gives details on DFR's road work accomplishmentsfor the period 1983-1990.
3.27 Past Exnenditure. DFR's sources of funding for the period 1983-1990are shown in Annex 3-10. Domestic funding sources are the GOG Central Budget and the Road and Cocoa Funds. Central Budget contributionsreached on average Cedis 450 million per annum between 1983 and 1990 and were spent on recurrent (reshaping)and capital (rehabilitation,culverts, regravelling) works. Road and Cocoa Fund contributionshave increasedrapidly and reached about Cedis 800 millionand Cedis 2,500 million in 1990, respectively. Regular external financingfor feeder roads started in 1989 and is being provided by the United States Agency for InternationalDevelopment (USAID), the InternationalFund for AgriculturalDevelopment (IFAD) and IDA through its Program of Actions to Mitigate the Social Costs of Adjustmentin Development(PAMSCAD), and its TRP-1 - 15 -
and CRP projects. While total support for feeder road works between 1983 and 1987 varied between US$6.0 and 8.0 million annually(with the exceptionof 1985 when virtually no funds were available), overall funding increasedto US$15.0 million in 1988, decreasedto US$13.0million in 1989, and reached US$19.0 million in 1990. The 1991 funding level (in terms of both domesticand external resources) is estimated at US$20.0 million.
3.28 Propose DevelopmentProgram. As noted in para. 2.15, DFR, with IDA assistance, has developeda 7 year feeder road developmentprogram (mid-1992to mid-1999). Details of the proposed program are shown in Annex 3-11. Physical targets to be achievedbetween 1992 and 1999 are: (i) full rehabilitationof 8,400 km of high priority feeder roads at an average 1,200 km per annum; (ii) regravelling of 8,850 km of fully rehabilitatedhigh priority feeder roads; (iii) spot improvementand culverting of 1,500 km of additional lower priority feeder roads; and (iv) keeping the oc rehabilitatedand spot improved feeder roads under permanent recurrent (blading) and routine maintenance.
3.29 During the mid-1992to mid-1996period (implementationperiod of this project), a total of 4,800 km of full feeder road rehabilitationwill be financedby (i) PAMSCAD(250 km); (ii) IDA, the African DevelopmentFund (ADF), and the Cocoa Fund and GOG Capital Budget under the ongoing Cocoa RehabilitationProject (2,050 km); and (iii) IDA, USAID, the Danish International DevelopmentAgency (DANIDA),the Organizationof PetroleumExporting Countries (OPEC Fund), and GOG Road Fund and Capital Budget under this feeder roads project (2,500 km). During the same period DFR will also carry out under the feeder roads project: (i) regravelling of some 2,850 km of feeder roads which were flXlyrehabilitated between 1983 and 1990 and need urgent periodic maintenance,and (ii) spot improvementof some 720 km of lower priority roads. Under the feeder roads developmentprogram, adequaterecurrent and routine maintenanceon all rehabilitatedand spot improved feeder roads u.ndr maintenanc (9,120 km by 1996) will be provided through Government funds.
3.30 During the 1996 - 1999 period some additional 3,600 km of feeder roads will be fully rehabilitated, bringing the high priority feeder road network under maintenanceto a total of 12,000 km, which is considered as an adequatefeeder road network for the country. Also, regravellingon some 6,000 km of high priority feeder roads is intended,together with 780 km of spot improvingand culverting, and recurrent and routine maintenanceon a total of 13,500 km on feeder roads by end- 1999.
3.31 DevelopmentProgram Costing. To arrive at DFR's feeder road developmentand follow-upmaintenance funding requirements, a preliminary maintenanceperformance budgeting system was developedduring project appraisal. It was based on DFR and mission experience, and by adaptingGHA's maintenancemanagement system to feeder roads. The total and annual funding needs for civil works for the 1992-1999NFRDP are shown in Annex 3-12. Total costs are estimated at US$311.0 million with a foreign exchangecomponent of US$127.0 million (41 percent). DFR will need substantialexternal funding for rehabilitationand periodic maintenance;consultancy and technical assistanceservices for engineeringdesign and works supervision,and institutional development;and funding provision for purchase of materials and equipmentfor routine and recurrent maintenance.
3.32 The required funding level for recurrent and routine maintenanceoperations between 1993 and 1999 has been estimated at a total of US$31.5 million. While recurrent maintenancewill cost US$19.1 million, roui.:Lemaintenance will amount to US$12.4 million. US$12.7 million will be needed for both routine and recurrent maintenancefor the 1993 to 1996 period, and US$18.8 million - 16 -
for the 1997 to 1999 period. These cost estimatesinclude 10% physical and 17% price contingencies. DFR has prepared district maps showing maintainablefeeder roads, thereby enabling accurate annual estimatesof required routine and recurrent maintenancefunding needs pga istrict. Routine and recurrent feeder road maintenancefunds will have to be provided by Central Government budget allocations and, increasinglyin future years by contributionstowards sustainablefeeder road maintenancefrom the districts' own financial resources. Road Fund resources are mainly used as counterpart funding for rehabilitationand periodic maintenanceoperations.
3.33 FundingStragy. Annex 3-13 contains an anticipatedfinancing plan for the 1992- 1999 civil works program. The lUrgestfinancial uncertaintyrelates to the availabilityof sufficient funds for recurrent and routine maintenance. DFR has until now expectedto complementthe GOG budget for recurrent expenditureswith voluntary contributionsfrom the communities,with unsatisfactoryresults, since voluntary contributionsfor recurrent and routine maintenancehave been very small in recent years. Sustainablefinancing sources for recurrent and routine maintenancehave to be secured from Central Governmentand from the individualdistricts and matched to the proposed rehabilitationand regravelling (periodicmaintenance) programs. The recent surge in external financingfor capital investmentssuch as rehabilitationand periodic maintenancerequires proper and timely coordinationamong present and future donors. IDA will assist the Governmentin this effort.
IV. THE PROJECT
A. Projact Objectives
4.01 The project is consistent with the IDA-supportedMTADS and TRP projects and will complementand reinforce the objectivesof the ERP. The aim of the project is to assist Ghana's economic recovery by:
(a) providing improved feedezr 3ad access to transport agriculturalproduce and agriculturalinputs to and from farms or villagesand nearby markets and thereby increasingfood and cash crop production;
(b) improvingmobility and economicopportunity for the rural poor; and
(c) improvingthe institutionalcapacity of DFR to sustain the feeder road program over time and to ensure the maintenanceof the rehabilitatedroad network.
B. Project Description
4.02 The main thrust of the 1992-99national feeder roads developmentprogram is to selectivelyimprove and expand the feeder road network, and to improve maintenancemanagement. An initial four-year time slice has been identified, but may be amendedfrom time to time to ensure that all sub-projectsmeet agreed selectioncriteria. Proposedproject componentsare:
(a) full rehabilitationof 2,500 km of feeder roads in 16 selectedroad areas with high and medium agriculturalpotential; - 17 -
(h) regravelling of 2,850 km of feeder roads which were rehabilitatedsince 1983 and are now under maintenance;
(c) constructionof up to 5,000 culverts includingspot improvementson some 720 km of selected feeder roads to provide minimum access;
(d) road maintenanceand workshop equipmentand tools and spare parts;
(e) consultantservices for engineeringdesign and contract supervisionfor (a), (b) and (c) above and for an organizationand managementstudy; a maintenanceperformance budgetingsystem development;and a socio-economicimpact study;
(f) technical assistanceto support DFR in contract management,road planning, road maintenanceand equipmentmaintenance/repair operations;
(g) overseas training for DFR staff and support for the Koforidualabor-based training school;
(h) support to the local contracting industryincluding assessment of industry performance; provisionof training, and light equipmentfor labor-based contractors;
(i) rural mobilityand environmentalimprovements and assistanceto NGOs and women; and
(3) DFR decentralizationsupport to develop and test a district-basedroutine maintenance system on feeder roads involvinglocal communities.
4.03 Rehabilitationof Feeder Roads (2,500 kwm. The project will cover the first four year phase (mid-1992to mid-1996)of the 7 year NFRDP (mid-1992to mid-1999) and will provide funds for full rehabilitationof 2,500 km of feeder roads, mainly in the 16 selected high and medium agriculturalpotential road areas (see map). The rehabilitationworks will be carried out using capital- intensivecontractors for 1,500 km through IDA, OPEC and COG funding, and labor-intensive contractorsfor 1,000 km through USAID and DANIDA financing,applying ICB and LCB procurementprocedures. Out of the 2,500 km of feeder roads, 560 km were selected earlier and are being designedunder TRP-1 funding. Selectionof these roads took place prior to the adoption of the selection criteria; therefore, some of the road links fall outside the 16 selected high priority road areas. Since all roads proposed for full rehabilitationunder the project have ERRs above 10% 2/, those outside the priority road areas are packagedas the phase-i roads of the project. The selection of additional 1,140 km, constitutingphase-2 feeder roads, has been completedand engineeringdesign has started under PPF and a Japanese grant and is expected to be completed in the first quarter of 1992. Feeder road selectionfor the remaining 800 km (phase-3roads) is presently underway. The Bank will review and approve the engineeringdesigns of the feeder roads.
2/ Investmentswith ERRs estimated as low as 10% based on quantifiablebenefits have been includedin the project since large, unquantifiablebenefits are typically associatedwith feeder road developmentand are likely to raise estimatedERRs substantially. - 18 -
4.04 Feeder roads in high rainfall areas such as the Western Region exhibit very fast rates of deteriorationmaking frequent and costly rehabilitationand heavy maintenancea necessity. During negotiations,agreement was reached on the tarring of selected feeder roads in high rainfall areas on a pilot basis, provided the roads selected are economicallyviable. This will enable comparisonof performance, durability and maintenanceneeds of bitumen-surfacedfeeder roads with the traditional gravel-surfacedfeeder roads. The project contains sufficientfunds for tarring some feeder roads on an experimentalbasis.
4.05 hRegr ling of Feeder Roads Rehabilitatedsince 1983 (2,85k. A total of 2,700 km of feeder roads has been rehabilitatedbetween 1983 and the end of 1990. This total will increase to 3,600 km by the end of 1991 when on-goingrehabilitation works are completed. Rehabilitated feeder roads require regravellingon average every 6 years. In the past, regravelling requirements were not fully met due to deficient maintenancemanagement and financial constraints. As the network of rehabilitatedfeeder roads expands, the backlog of regravelling needs will increase, leading to more deteriorationof rehabilitatedroads. Th brefore,an expansion in rehabilitationcan be justified only if the follow-upregravelling requirements can be met.
4.06 To reverse the present trend, the project will provide funds from IDA, OPEC, USAID, DANIDA and GOG for regravellingof about 2,850 km of feeder roads during the 1992-96 project implementationperiod. All regravellingworks will be carried out through ICB and LCB contracts. The project will also provide funds from IDA for routine road maintenanceequipment, while GOG will provide funds for the executionof routine and recurrent maintenancefrom its budget. Routine maintenanceactivities such as grass cutting, ditch and culvert cleaning will mostly be carried out using single man contractors(SMC) for 3 to 5 km road stretches (length-mansystem of contracting).
4.07 Culverting ana Spot Improvement. The 7 year NFRDP aims at rehabilitatingsome 8,400 km of priority feeder roads out of the total 21,300 km of feeder roads in Ghana. This would normally imply that low priority areas could not be considered for full rehabilitationof feeder roads. However, to enable increasedagricultural production in these areas as early as possible, it was decided to provide interim low standard roads by carrying out culvertingand spot improvementworks at minimum cost for roads which could not be covered under the 7 years program. The feeder roads for culverting and spot improvementwill be selected accordingto criteria to be agreed by DFR, USAID and IDA. The types of work to be done will be limited to providing minimum access so that agriculturalproduce can be transportedto markets at reasonablecost. Up to 5,000 culverts with spot improvementson some 720 km will be financedby USAID.
4.08 Road Maintenanceand Workshop Equipment.Tools and Spare Parts. DFR will continueto carry out by force account (MOREMATunits) most of the pothole filiing, spot patching and recurrent blading operations. DFR will soon have enough motor graders and operators to carry out recurrent maintenanceworks on a larger scale. The MOREMATunits are making valuable contributionsto feeder road improvementsand are consideredthe most efficient way to execute recurrent maintenance. DFR needs limitedadditional equipmentsuch as tippers for long distance haulage and farm tractor-trailer units for short distancehaulage of gravel; 4-wheel drive vehicles and motor cycles for field supervisory staff; workshopand training equipment; road maintenanceand workshoptools; spare parts for both existingand new equipment, and mobile radios and office equipment. These items will be financedby IDA. The list of equipmentand vehicles to be financed under the project has been developedby DFR and agreed by IDA. Annex 4-1 contains a description of DFR's equipmentstatus. - 19 -
4.09 CQnS e s The project will provide funds through IDA and a Japanese grant for engineeringdesign (200 m/m) and supervisionof contracts(230 m/m) for all rehabilitation and maintenanceworks. For design work, internationalfirms have been encouragedto form joint ventures with local and foreign firms. A contract managementspecialist (56 m/m) will support DFR in project procurementand implementationthrough IDA financing. During negotiations,it was agrcA that appointmentof the contract managementspecialist will be a conditionof credit effectiveness. DFR's institutionalcapacity will also be strengthenedthrough (i) executionof an organization and managementstudy under Japanesegrant funding (18 m/m) (AnnexA Ž, and (ii) developmentof a maintenanceperformance budgeting system though DANIDA financing(30 m/m) (Anne . For the lattr, the project will finance consultantservices for systc.mdevelopment, system testing in pilot road areas, countrywideimplementation of the system, and for training DFR staff in system application. Funds will also be provided for a socio-economicimpact study (27 m/m) through IDA funding which will monitorand evaluate the impact of rehabilitatedfeeder roads on agriculturalgrowth and rural mobility (Annex 4-4J.
4.10 During negotiations,it was agreed that project supportthrough the existing managementunit within MRH will be provided, specificallythrough two qualifiedaccountants to assist DFR in carrying out all financial aspects of project implementation. It was also areed, that appointmentof these two accountantswill be a conditionof credit effectiveness, Project support by MRH will be financedby IDA. The managementunit within MRH exists since 1985and presently consistsof a projects manager cum procurementspecialist, a financial manager, other accountingand support staff and a number of counterparts. The unit is being financedunder the ongoing TRP-2.
4.11 TechnicalAssistance to DFR. Over the past three years, DFR's annual work load has expanded, placing a heavy burden on its institutionalcapacity. This burden will continueover the 4 year period of the project. Annex 4-5 contains recommendationsfor DFR's organization. Annex 44 describes DFR staffing requirements. Institutionaldevelopment requires time, hence the project will help to bridge the shortfall in institutionalcapacity by providingtechnical assistancethrough DANIDA fundingin the areas of (i) mechanicalengineering (2x24 m/m); (ii) feeder road planning (24 m/m); (iii) feeder road maintenance(24 m/m); and (iv) computer systemsanalysis (24 m/m). This technical assistancewill be supplementedby United Nations Volunteers (UNV) (5x24 rn/m) who will support DFR's organizationas field civil engineers.
4.12 Training for DFR and Local Contractors. Training for DFR and capital-intensive contractorswill be provided at GHA's Central Training Center (CTC), its Road Training and Production Unit (RTPU) and its MechanicalTraining and ProductionUnit (MTPU). These units are being expanded and staffed under TRP-2. Annual training programs are being developedby CTC which will integrate training requirementsof GHA, DFR, DUR and local capital-intensiveroad contractors. Coordinationof the CTC training program among the road agencieshas already started. Training for labor-intensivecontractors will continue and be intensifiedat DFR's Koforiduatraining school which is already establishedand achieving excellentresults. To strengthenthe training effort, the project will fund the constructionof a new school buildingand dormitory, training equipmentand aids (through USAID) and an ILO labor-basedtraining specialist(30 m/m) (through IDA funding).
4.13 As part of the institutioDaldevelopment, it is importantto expose DFR's engineers, economistsand high level techniciansto modern technology,planning and programming,execution of road works, contract supervisionand quality control. Based on the good results achievedunder GHA's overseas training program, the project will fund (throughUSAID) up to US$0.76 million in overseas training for selected DFR staff comprisingparticipation in seminars, short academicand practical courses, and graduate degree courses (Annex 4). Under the technicalassistance services - 20 -
to be financedunder the project, mainly through DANIDA, DFR staff will also receive comprehensiveon-the-job training. DANIDAhas ensured that TOR for the required technical services wIll fully address the training part of the assignments.
4.14 Local ConstructionIndustry Support. About 40 domesticcontractors, who are presently executingthe major portion of GHA's regravellingand resealingworks under the ongoing TRP-1 and TRP-2, were provided funds during 1985-88for purchase of equipmentand spare parts under an on-lending arrangementthough BHC under the Bank financedRRMP (Fourth Highway Project). Contractorperformance is still being adversely affectedbecause of lack of management skills; the inabilityto employ experiencedfield and office staff; and deficient field work planning and programming. To address these problems, the project will fund a constructionindustry assessment and developmentstudy under Japanese grant funding (18 in/m) (Annex 4-8) to assess the constraints on the industry, and to recommendmeasures to be taken by GOG and the donors to improve contractor performance. Given the size and urgency of domesticcontracting problems this study will be executedduring the first project year. To guarantee follow-upto the study, the project mid-term review will decide on actions based on study recommendationswhich would be taken during the second part of the project and the proposed second feeder roads project.
4.15 DFR, assistedby IDA, UNDP and ILO, has trained and equipped 25 labor-based contractors. Each of these 25 contractorsis able to rehabilitate 25 km of feeder road per year. This effort by DFR has supportedthe implementationplan set out for the project. DFR is presently training an additional 22 labor-based contractorsand upon completionof the training, the contractors will need financial support for light labor-basedequipment. The project will fund this equipment through USAID and DANIDAfor the labor-basedcontractors on terms and conditionsto be recommendedby the domestic contractingindustry study up to a total of US$4.2 million. The cost to equip one labor-basedcontractor s estimatedat US$180,000.
4.16 Rural Mobilityand Environment. The project will target poverty alleviationin rural areas through the provisionof seed money to NGOs and cooperatives,to be used for starting hire- purchase schemes for non-motor 'vehicles. This will reduce headloadingand increase rural productivityand income. The in,tial funding will provide a revolving fund through DANIDA financingfor NGOs and cooperatives. Details of the operationof the revolving fund will be developedby DANIDA and DFR be' "re DANIDAfunds will become effective. These hire-purchase programs which are to be modelled( a program currently run by the AmasachinaNGO in Tamale and another NGO initiatedby MLG will provide a long-term revolving fund for bringing more intermediatemeans of transport (IMIT)vehicles into the rural transport system. The initialproposal is to supply some 40 sets of cycles, trailers and farm vehicles, in two tranches to each of 100 NGOs and cooperativesin Brong-Ahafo,Volta and Northern Regionsat a cost of US$1.8 million.
4.17 Anotherpoverty componentwill be the planting of fruit trees alongside selected feeder roads (some 600 kIm)by NGOs and fundedby USAID and DANIDA. Plantingwill be back of the ditch and not in the road side. NGOs will, on a contract-basis,do both the initial planting and its after-care (about US$2.0 per seedling includ;ugits after-plantingcare). This will improve the environmentand provide incomefrom fruits and regular harvest of firewood. The project will rIso finance (through DANIDA)promotional campaigns for (i) an increasedparticipation of women in feeder road rehabilitationand maintenance,so as to enhance income-earningopportunities for women; and (ii) raising environmentalawareness in feeder road maintenancesuch as erosion control and prevention, ultimately leadingto environmentalimprovements. Cooperationwith NGOs and cooperativeswill be needed to implementthese campaigns. Details of the rural mobility and environmentalmeasures are given in Annex 4-2. - 21 -
4.18 DFR DecentralizationSuport. A DFR decentralizationsupport componentfunded by IDA is intendedto provide assistancefor analysis, experimentationand implementationconcerning (i) the decentralizationof DFR; (ii) the developmentof apprGpriateadministrative and financialcapacities in the district governments;and (iii) the negotiationof appropriaterelationships between DFR and the district governments. Specificactivities of this componentwill include:
(a) Executionof short studiesof actual and potential institutionalarrangements for routine feeder road maintenancein up to eight pilot districtsduring the first W2 years of the project. These studieswill examine the incentivesneeded for individualsand communities,under varying institutionalarrangements, to (i) maintain feeder roads and (ii) contributefunding for routine maintenanceof feeder roads;
(b) Monitoringof the flow of routine maintenancefunds to and from districts and producers of road maintenancein order to insure that road maintenancefunds are used for the intendedpurpose;
(c) Improvementof district maintenanceplanning for feeder roads;
(d) Improvementof district financial managementand accountingcapabilities;
(e) Facilitationof developmentand implementationof mutually supportiveproject planning and control processes in DFR and participatingdistricts;
(f0 Assistanceto districts with identificationand negotiationof sustainableinstitutional arrangementsfor feeder road routine maintenance;and
(g) Monitoringand evaluationof alternativeinstitutional arrangements for routine feeder road maintenance.
4.19 The DFR decentralizationsupport componentwill comprise 144 n/ni of local expertise and 12 m/m of foreign technicalassistance. The latter will be filled on an intermittent consultingbasis. The major task of the decentralizationsupport team will be to assist the project in designing and conductingthe program of research, experimentationand analysisof institutional arrangementsfor routine feeder road maintenancein up to eight pilot districts which will be selected immediatelyfollowing project effectiveness. The foreign consultantwill assist in the analysisof the results of the various studies and experimentsas appropriate. The consultantwill also be called upon to assist with the identificationand design of appropriateadministrative and financial training curricula for those involved in the routine maintenanceprocess.
4.20 As part of the project mid-term review scheduledfor end-1994, an in-depth review and assessmentof the results which would be achieved during the first two project years will be undertakenregarding the proposed organizationand finance scheme outlined in para. 4.18 (a) to (g) above. Revision or redesign of the proposed systems might become necessary at that time. Annex 4-1 describes alternative institutionalarrangements for district-basedroutine maintenanceon feeder roads while Annex 4-11 summarizesan assessmentof the district resource mobilization potential. -22
C. Protect Cost and Financing
4.21 The estimatedtotal c st of the project amountsto US$106.0 million (includingtaxes, physical and price contingencies)with a foreign exchangecomponent of US$50.3 million equivalent or 47 percent of total project cost. Import duties and taxes on the project related imports are estimated at US$6.7 million equivalent. Costs have been estimatedat mid-1991prices, and at an exchangerate of US$l = 375 cedis. Costs includephysical contingenciestailored to each project component,averaging 10% of base cost. Price contingencieshave been derived from the following assumed rates of price increase: foreign prices 2.5% in the second half of 1991, 1.8% in 1992, 1.9% in 1993, 3.8% in 1994, 4.9% in 1995 and 4.2% in 1996; local prices 10.0% in the second half of 1991, 8% in 1992 and 5% per annum in 1993-1996. The exchangerate is expected to be adjustedto reflect differencesbetween the internationaland domesticrates of inflation.
4.22 Cost estimates for feeder road rehabilitationworks are based on recent LCB and ICB contracts, and on average amount to US$10,000per km for labor-intensiveLCB; US$18,000per km for capital-intensiveLCB and US$23,000 per km for ICB contracts, dependingmainly on the amount of earthworksinvolved. The cost of regravelling is estimatedat US$7,500per km based on recent GHA contractsand adjusted for differences in design standardsbetween trunk and feeder roads. For equipment,tools and spare parts mid-1991 prices were estimated from 1990 purchasing cost.
4.23 Project cost and financingplan are summarizedin the table below with details in Annexes 4-12 and 4-13, respectively.
Summary Project Cost and FinancingPlan (US$ million)
TOTAL IDA GOG USMD DANIDA OPEC JAPAN COST A. Feeder Road Program 1. Feeder Road Rehabilitation 51.4 31.6 5.2 6.0 6.2 2.5 2. Feeder Road Regravelling 26.0 13.9 2.4 4.7 2.4 2.5 3. Culverts/SpotImprovements 6.2 - - 6.1 - - 4. Maintenance& WorkshopEquip., Tools & Spares 4.7 4.5 0.2 - - 5. Design and Supervision 1 Q.I - 1.0 SubtotalFeeder Road Program 91.2 L21 6.8 LN 5.01. B. InstitutionalSuXort Program 1. ManagementLine Positions 1.3 1.3 - - - 2 Technical Line Positions 1.8 - - - 1.8 3 United Nations Volunteers 0.2 0.2 - - 4. Studies 0.9 0.1 - - 0.5 - 0.3 5. Training 1.5 - - 1.5 - - - 6. ConstructionIndustry Support 5.1 - 0.3 2.5 2.0 - 0.3 7. Rural Mobilityand Environment 2.4 - 0.1 0.2 2.1 - 8. DFR DecentralizationSupport LA 0 1 -J - _ _ SubtotalInst. SupportProgram 14 8 4.2 6.4 0 Total Project Cost 55.0 L4 0 i6 156Q Note: Figures Rounded - 23 -
4.24 IDA will finance US$55.0 million equivalent, or about 55%of total project cost (excluding duties and taxes). During negotiations,agreement was reachedthat Governmentwill ensure sufficient annual budgetary allocationsfor its counterpart contributionfrom the road fund and its budget to the costs of the project, the said contributionbeing estimatedby the Borrower and the Associationto amount, in the aggregate, over the project period to US$8.4 million equivalent (8% of total project- related cost). It was also agreed that the Borrower will furnish, through DFR, to the Associationfor its review, thra months prior to the start of the respectiveperiod, the annual and quarterly estimates of project expenditures,including the required counterpartfunding by the Borrower. In addition, ia was agreed that the Government will deposit into DFR's account before the end of each quarter, starting in fiscal year 1993, the Borrower's contributionsto the financingof the project as set forth in the quarterly estimates referred to above. Agreementwas also reached that, as a conditionof credit effectiveness,the Borrower will deposit into DFR's accountin Cedis the equivalent of US$300,000as its counterpartcontribution to the financingof the project for fiscal year 1992.
4.25 Cofinancingagencies will cover US$42.6 million equivalentor 40% of total project cost. USAID and DANIDA will finance US$21.0 million and US$15.0 million, respectively,under parallel financingarrangements. The OPEC Fund has assured the Bank that it will contributeUS$5.0 million under joint financing. A Japanese Grant Fund amountingto US$1.6 million has been made availableto finance engineeringdesign and other urgent technicalstudies. The Bank will administer this grant. Cofinavcingnegotiations are at an advancedstage and are expectedto be completedat the time of credit effectiveness. USAID participatedin the appraisalmission. DANIDA will carry out appraisalof its project componentsin November 1991. Project componentswere packagedduring appraisalbased on discussions with DFR, USAID and DANIDA (through Danish Embassystaff), and allocationsof funds to project componentswere agreed. OPEC funds will be used for feeder road rehabilitationand regravelling works only.
4.26 In addition, GOG is expectedto contributeUS$12.7 million equivalentover four years (1993 to 1996) from budget allocationsfor financingof feeder road routine and recurrent maintenanceactivities in the 110 districts. These expendituresare not part of DrQject-re1atgdcost but form part of the 7 year feeder road developmentprogram. Recurrentand routine maintenancefunds increasethe Governmentcontributions under the project to 18%. During negotiations,asuranc from the Governmentwas obtainedthat sufficientannual budgetary allocationswill be made for the recurrent and routine maintenanceof feeder roads in its budget in line with the agreed upon funding schedule for the 1993-1996period, namelythe equivalentof US$1.87million in fiscal year 1993, the equivalentof US$2.75 million in fiscal year 1994, the equivalentof US$3.61 million in fiscal year 1995and the equivalentof US$4.48 million in fiscal year 1996.
4.27 DFR will be provided with the necessary funds at the beginningof each quarter. During negotiations,Government agreement on the followingdetailed GOG funding schedule for routine and recurrent feeder road maintenancewas obtained: - 24 -
Period Year 1: Year 2: Year 3: Year 4: Activity CY 1993 CY 1994 CY 1995 CY 1996
Rout. MaintenanceFunds per Year US$0.84m US$1.15m US$1.45m US$1.76m Rout. MaintenanceFunds per Quarter US$0.21m US$0.29m US$0.36m US$0.44m
Rec. MaintenanceFunds per Year US$1.03m US$1.60m US$2.16m US$2.72m Rec. MaintenanceFunds per Quarter US$0.26m US$0.40m US$0.54m US$0.68m
Total MaintenanceFunds per Year US$1.87m US$2.75m US$3.61m US$4.48m Total MaintenanceFunds per Quarter US$0.47m US$0.69m US$0.90m US$1.12m
4.28 The focus of the maintenanceprogram will be on routine maintenanceoperations such as grass/bush cutting, ditch and culvert cleaning, and pothole/spotpatching on maintainablefeeder roads. These activities require less funds than recurrent maintenanceactivities (about 70 percent). Recurren. maintenanceconsists of (i) blading by contract of maintainablefeeder roads, and (ii) heavy reshapingby force account of lower priority feeder roads to obtain basic access. These latter roads are not under regular maintenanceand are not part of the maintainablenetwork. In the event of local maintenancefunding constraints, shortfalls shouldonly effect recurrent maintenanceand specifically reshapingby force account. If necessary, these operations could be suspended, delayed or reduced without negatively affectingessential routine maintenanceof maintainablefeeder roads. Routine maintenancefunding requirementsfor the 1993-1996period come to US$5.2 million equivalentonly.
4.29 Road fund transfers to DFR have increasedsubstantially in recent years and will reach about US$3.5 million equivalent in 1991. This wouid yield some US$15.8 million equivalentfor the mid-1992 to end-1996project period if the 1991 funding level were kept constant. However, this fundinglevel is likely to be increased. Central budget transfers to DFR reached on average US$1.4 million equivalent in recent years and would yield US$6.3 million for the project period if these funding levels were kept constant. The estimatedtotal of US$22.1 million equivalentfrom the road fund and central budget for the mid-1992 to end-1996period compares favorably with project and program counterpartfunding needs of US$21.1 million equivalent for the same period. Lower Governmenttransfers to DFR in the past reflected more the lack of proper maintenanceplanning and budgeting on behalf of DFR, rather than the ability of Governmentto provide sufficientfunds for feeder road maintenance.
D. Proet Design and Implementation
4.30 A thorough assessmentof past and ongoing road projects in Ghana was conductedand has resulted in the identificationof a number of key lessons leari. These were subsequentlyused as important linkages for the design of this operation. Previous road projects tended to be primarily 'rehabilitation-driven",without paying enoughattention to systematicmaintenance organization, fundingand capacity building. This operationhas been designed as a "maintenance-driven"project which concentrateson: (i) the developmentof a maintenanceculture in Ghana's feeder roads sub- sector, and (ii) the linkageof executionof road works with the establishmentof a sustainablefeeder road maintenancemanagement system.
4.31 The approach taken links maintenanceplanning, design, programming,budgeting and works supervisionwith: (i) an institutionalcapacity buildingprogram, and (ii) appropriate mechanismsof works execution relying nearly exclusivelyon private contractors, and comprisingfull rehabilitation,periodic maintenance(regravelling), recurrent maintenance(blading), spot improvement - 25 -
and culverting, and routine maintenancein an integratedanalysis framework. Other principal lessons learnt from previous operations indicatethe need for: (i) detailed scheduling of procurement processingand project implementation;(ii) frequent project supervisionand annual implementation reviews; (iii) definition and usage of monitorabletargets in assessing project progress; (iv) mid-term review to adjust project design; (v) time-boundaction program for institutionalstrengthening of the implementingroad agency; and (vi) reliance on an adequat mix of capital-intensiveand labor-based private contractorsfor works execution.
4.32 Procuremcntand Proiect ImplementationSchedule. A detailed schedule for procurementprocessing and project implementationincluding start and completionof engineering design and supervisionof works, award of contractsfor civil works and goods under ICB and LCB, and technical assistance, studies and DFR staff and contractortraining was prepared and agreed during project appraisal. This schedulehas been computerizedat DFR to serve as a project monitoring instrumentwhich will measure project progress to assist DFR and Bank supervision missions. It will be updated regularly to keep up with project events and has already been refined twice since project appraisal. Given the level of detail and size of this schedule, it has been placed in the project file. Annex 4-14 contains a summaryof the schedule.
4.33 The project is scheduledfor completionby the end of 1996. This is considered feasible since Ghana's road agencieshave demonstratedin the recent past good capacity to undertake timely road project implementation. DFR has already developedappropriate know-howin processing procurementfollowing Bank procurementguidelines under the RRMP and TRP-1, and the road componentof the Cocoa RehabilitationProject. Given this experience, the processing of contracts is expected to be handled on a timely basis. Also project preparation is in an advancedstage. Implementationof USAID financedfeeder road works is scheduled to start in December 1991. During negotiations,it was aereed that retroactivefinancing up to US$2.0 million equivalentwill be allowed under the IDA credit, on accountof eligible paymentsmade after January 1, 1992. It is expected that selected feeder road rehabilitationand regravelling works followingLCB procurement procedures will be awarded not later than early January 1992.
4.34 Frequent ImplementationReviews. Annex 4-15 shows the project supervisionplan which covers the period from June 1992to February 1997. Three supervisionmissions per year have been scheduled, i.e. in February, June, and October. Annual implementationreviews were agreed among IDA, USAID, DANIDA and DFR at the time of project appraisal. These reviews will take the form of extensivesupervision missions (scheduled for June of each project year) to ensure that the principal financing agenciesand DFR: (i) properly coordinate all project-relatedactivities; (ii) exchangeviews on all project issues of commonconcern and/or interest; and (iii) resolve outstanding problems which hamper project implementation. The first such mission, with USAID and DANIDA participation is scheduled for June 1992and will take the form of a project launch workshop.
4.35 The annual implementationreviews will also evaluate the adequacyof routine and recurrent maintenancefunding through Goverment sources as agreed during negotiations(paras. 4.26 and 4.27). These maintenancefunding and expenditurereviews will be linked to (i) the agreed preparation of annual estimatesof project expendituresby DFR (para. 4.24), and (ii) the timing of Governmentbudget preparation. Central Government's budget is prepared during the period from October to December which is well after the annual project implementationreviews scheduled for June/July. Given that this project is the first free-standingIDA operationfor DFR, it is considered to be supervision-intensive. Adherenceto the proposed supervisionplan will therefore be a strict requirement for smooth project implementationand timely disbursementsof project funds. - 26 -
4.36 MonitorableTar. Annex 41 contains a monitoringmatrix against which implementationperformance of the project will be monitored. A set of performance indicatorsand monitorable targets was derived from the detailed schedule of procurementprocessing and project implementationand UFS&dduring negotiations. For monitoringpurposes the project was divided into 8 components:(i) physical works in 3 phases for rehabilitation;4 phases for regravelling;and spot improvement/culverting;(ii) studies; (iii) implementationof study recommendations;(iv) institutional support; (v) staffing; (vi) training; (vii) budgetingand expenditures;and (viii) disbursementof IDA proceeds. The monitoringmatrix has been desiginedsuch that DFR and Bank supervisionmissions will use it as an additionaltool for project management. Achievementswill be evaluatedfor year 1 and 2 of the project by June 1993 and 1994, respectively, coincidingwith the annual project implementationreviews. The project mid-term review at the end of 1994 will define monitorable targets for the remainder of the project (1995-1996). Adherenceto legal covenantswill be verified independentlyof the deadlinesgiven in the monitoringmatrix.
4.37 Project Mid-Term Review. During negotiations,it was apreed that a thorough mid- term project implementationreview involvingIDA, USAID, DANIDA, OPEC and various Government agencies (MRH, MA, MLG, MFEP, EPC, DFR) will be carried out not later than December 31, 1994. This review will evaluate and assess: (i) overall progress made in project implementationduring the first two project years; (ii) performanceof DFR as executingagency for the project; (iii) the adequacyof the Borrower's counterpart funding as well as the level of budgetary allocations and actual expendituresfor routine and recurrent maintenance; and (iv) the need for redesign and/or restructuringof project componentswith implementationdifficulties, includingas necessary drafting of an action plan to be carried out until project completion. In addition, the mid- term review will: (i) assess the results and recommendationsof completed studies, ongoing technical assistanceand training programs; and (ii) agree with the borrower on implementationof findings. This review would relate specificallyto: (i) the organizationand maintenancestudy; (ii) the maintenanceperformance budgeting system development;(iii) the domestic contractor assessmentand developmentstudy; (iv) the institutionalarrangements for district-basedroutine feeder road mnaintenance;(v) DFR staff and domestic contractortraining programs; (vi) progress of the rural mobility and environmentalcomponent; and (vii) monitoringand evaluationstudies of feeder road impacts on agriculture and the rural economy.
4.38 Action Program for InstitutionalStrengthening. A detailed time-boundaction program for the institutionalstrengthening of DFR has been formulatedand is shown in Annex 4-17. DFR will be the primary implementingagency for all componentsof the project, with the exception of the rural mobility and environmentalcomponent which will be implementedby selected NGOs and cooperativesthrough bilateral funding. All civil works, supply of goods, and consultingservices under the project will be implementedby DFR. It will be assistedby (i) one specialistin a line position for contract management;procurement; and compilationof data and preparationof project completion report (PCR), and (ii) the existingmanagement unit in MRH through two qualified accountantsin cost accounting;disbursement; and preparation of quarterly and annual progress reports. The contract managementcum procurementspecialist has already been selected and will start his assignment in April 1992. Selectionof the two accountants,to be located in MRH is underway.
4.39 DFR will also be supportedby five specialistsin technicalline positions to be engaged in the fields of feeder road planning and programming,maintenance management, operation of mechanicalworkshops, systems analysis and training. These technical assistancespecialists will be financed by DANIDA. Terms of reference for these positions have been prepared by DFR and will be reviewed and agreed during DANIDA's appraisalof its project componentsin November 1991. IDA will also review and agree upon these TOR to ensure full compatibilitywith technical assistance - 27 -
componentsfinanced by other cofinanciers. On the road area and district levels, DFR will be assisted by jiyv civil engineers from the UNV service. All engineeringdesign and contract supervision services will be carried out by local and internationalconsultants financed under the project.
4.40 Mix of Capital-Intensiveand Labor-BasedPrivate Contractors. The feeder road rehabilitation works will be executed using (i) internationaland the largest domesticcontractors for feeder roads packaged into large contractsfollowing Bank ICB procurementrules; (ii) smaller domestic capital-intensivecontractors for individualshort length feeder roads which cannot be packaged into large contractsdue to their geographicaldistribution following LCB procurementrules; and (iii) labor-based contractorswhich have been trained by DFR for rehabilitationof annual 25 km long feeder road sections where road side material is suitable for formationlevel constructionand surfacing material is available within a 5 km hauling distance, also following LCB procurementrules. Regravellingworks will be packagedto the extent possible in large lots, suitable for ICB while short length road links which are geographicallyscattered will be packagedfor LCB. Routine maintenance such as ditch and culvert cleaning and grass/bush cutting will be done by contract mainly using SMCs which have been successfullyintroduced by GHA on a large part of the trunk road network. DFR will continueto carry out recurrent maintenanceactivities such as pothole/spotpatching and heavy blading works with its MOREMATunits. Equipmentneeds for the force account operationwill be supported under the project and financedby IDA.
E. Status of Project Preparation
4.41 Preparationof physical works componentsis in an advancedstage as follows:
(a) Selectionof Feeder Roads:
(i) Some 560 km of feeder roads have been selected. These will constitutephase- 1 of the physical works program of the project (see map).
(ii) Phase-2 feeder road selection, under PPF funding, of 1,140 km in 8 priority road areas has been completed (see map).
(iii) Selectionof the remaining800 km (phase-3)in 8 additionalpriority road areas is presently underway. This work is expectedto be completedby December 1991.
(iv) Selectionof 50% of 2,850 km of feeder roads for regravelling, constituting the regravellingprogram for the first two project years, will be completedby DFR before Board presentation. The second batch will be selected during the second year of the project.
(b) EngineeringDesign and Preparationof Bidding Documents:
(i) Preliminary engineeringdesigns for the 560 km of phase-I feeder roads were reviewed by the appraisalmission and final design is now underway. This work is expectedto be completed in December 1991.
(ii) TOR, LOI, draft contract agreementsand shortlistsof consultantsfor engineeringdesign of the 1,140 km of phase-2 feeder roads have been cleared by the Bank. Proposals from shortlistedconsultants have been invited and - 28 -
engineeringdesign consultantsare scheduledto start work in December 1991. They will also prepare bidding and contractor pre-qualificationdocuments. Engineeringdesigns will be completedby mid-1992.
(iii) Engineeringdesign for the remaining800 km of phase-3 feeder roads is scheduledto start by April 1992 for completionwithin 8 months.
(iv) Engineeringdesign for the 1992/93regravelling works will be done by consultantsto be selected before then end of 1991. The Bank has cleared TOR, LOI, and draft contract agreements.
F. Procurement
4.42 Procurementarrangements are summarizedas follows. Annex 4-18 contains a detailed procurement table.
Amountsand Methods of Procurement (IDA shares in parentheses) (US$ million) Parallel Ea£1 Component ICB LCB Other Shopping Financing Total
1. Civil Works 44.29 13.80 25.74 83.83 (38.53) (6.97) (45.50)
2. Equipment, Spare 4.21 0.51 4.19 8.91 Parts, Vehicles & (3.97) (0.48) (4.45) Materials
3. TechnicalAssistance 2.24 2.70 4.94 and Studies (1.60) (1.60)
4. Engineering,Training 4.57 3.77 8.34 & Other Support (3.45) (3.45)
Total Project 48.50 13.80 6.81 0.51 36.40 106.02 IDA (42.50) (,. (5.7 (55.Q0)
4.43 Bank financed feeder road rehabilitationand regravellingworks will be packagedin lots for ICB contracts. They will provide opportunityfor domestic contractorsto participatein individuallots while large internationalcontractors can bid for combinationsof lots for which they are prequalified. Eligibledomestic contractors who bid for works contracts under ICB will receive a 7'h percent preference in bid evaluation. Short lengths of feeder road rehabilitationand regravelling works which sre dispersed in remote locations(see map) and which are difficult to package for ICB will be procured by LCB acceptableto the Bank. The engineeringdesign consultantswill package feeder roads into ICB and LCB contracts, and the Bank will review the packaging. LCB contracts will range in size around US$0.6 million. The aggregatevalue of LCB contractswill be US$14.0 million of which IDA will fund up to US$7.0 million. Maintenanceequipment, non-proprietaryspare parts, - 29 -
vehicles and tools estimatedto cost US$4.2 million will be procured through ICB. Office equipment, training aids, items of minor spare parts and handtools, and proprietary items will be packaged into similar lots not exceedingUS$50,000 and procured through internationalshopping (with a minimum of three quotations),up to an aggregatevalue of US$160,000. Also, mobileradios will be procured through internationalshopping as these requirementsare of varied nature, and availabilityof after- sales services is a pre-requisite. The aggregatevalue for these will not exceed US$350,000. The Bank will review the need for the use of shoppingprocurement procedures.
4.44 DFR is the principal implementingagency responsiblefor carrying out the project, including all procurement, with assistance from the managementunit in MRH. This is the first free standing feeder roads project and seventh in the road sub-sectorin Ghana, and DFR staff has benefitted from technical assistanceprovided in the earlier projects. Up to four DFR staff members will be given training in procutement, through participationin the courses conductedby the Ghana Institute of Managementand Public Administration(GIMPA) and ILO. They will be retained by DFR to prepare designs, bidding documents, supervisionof technical studies and constructionindustry support. Technical assistancewill include project managementservices and engineeringspecialists. All consultancycontracts will be carried out in accordancewith World Bank Guidelines.
4.45 The borrower's procurementpractices were reviewed in earlier projects and the borrower has incorporatedin the Standard BiddingDocuments for works for ICB and LCB the necessary provisionsto complywith the Bank's requirements. These standard documentsare based on the Bank's SampleBidding Document for Works and are to be used for this project. For goods, the Bank's SampleBidding Documentfor Goods will be used. Procurementfor packages financed by DANIDA and USAID will be according to the respectivefunding agency's procedures. The Bank will act as the executingagency for OPEC-fundedcivil works. OPEC-fundedcivil works components to the amount of US$5.0 million will follow Bank procurementprocedures for LCB and ICB, the latter with built-in prequalificationprocess. The detailed procurementprocessing and project implementationschedule is part of the project files from which the estimateddisbursement schedule has been derived.
4.46 During project supervision,Bank financedworks contracts above a threshold of US$500,000will be subject to Bank's prior review. The review process will cover about 80 percent of the total works contractsvalue procured by ICB and LCB. Goods contracts or packages above US$ 100,000will also be subject to prior review covering about 90 percent of total value of Bank financedgoods. Selectivepost review of awarded contractsbelow the threshold levels will be carried out during supervisionmissions. Prequalificationof contractorswill be done for all ICB contracts. Retroactivefinancing up to US$2.0 million equivalentwill be allowed under the credit, on account of eligiblepayments made after January 1, 1992.
4.47 Procurementinformation will be provided by DFR as follows: Comprehensive quarterly reports to the Bank by DFR, indicating:
(i) revised cost estimatesfor individualcontracts, includingthe estimatesof physical and price contingencyallowances; and
(ii) planninginformation with the revised timing of procurement action, including advertising,bidding, contract award, and completiontime for individual contracts. - 30
G. isbuscm
4.48 The credit is expectedto be fully disbursed by June 30, 1997. It will be disbursed against the followingcategories. The disbursementschedule (Annex 4-19) is based on the project implementationschedule.
Allocationand Disbursementof IDA Credit
Percentage IDA Amount of Expenditure Catgory (US$ Million) to be financed
(a) Civil works 40.95 100% of foreign expenditures and 60% of local expenditures
(b) Equipment, spare parts, 4.00 100% of foreign expendituresand vehicles and materials 90% of local expenditures
(c) Engineeringservices, 4.55 100% technical assistance, studies, training and auditing
(d) Refinancingof PPF 0.75
(d) Unallocated 4.75
TOTAL 55.0
4.49 In order to facilitate project implementationand reduce the volume of withdrawal applications, a special account will be opened in US$ at a commercialbank on terms and conditions acceptableto IDA. The initial advance of US$2.0 million covers about 4 months of eligible expendituresfinanced by IDA. Replenishmentrequests will be submittedby DFR to IDA on a monthlybasis. Each request must be fully documentedexcept for contracts for (i) civil works less than US$300,000equivalent, (ii) other goods and services less than US$50,000equivalent, and (iii) consultancycontracts, training programs, studies and courses less than US$50,000equivalent will be disbursed on the basis of Statementsof Expenditure(SOEs). All supportingdocumentation will be retained by DFR for review by periodic World Bank supervisionmissions and external auditors.
H. Accountingand Auditing
4.50 DFR will establish separate accounts, in accordance with acceptableaccounting principles, to record all project expendituresand to maintainrecords on conmnitments, reimbursementsand the status of project funds. Audit covenantsunder previous road projects have been met by the borrower. With respect to the amounts withdrawnon the basis of SOEs, DFR will maintain records on contracts, invoices, and evidenceof paymentsreadily availablefor review. External auditors acceptableto the Associationwill carry out audits of the Special Account, project accounts includingSOEs, and DFR accountingrecords, and provide long form audit reports to IDA within six months of the end of each fiscal year. DFR will maintain accounting, costing, - 31 -
procurementand progress report records for all project components. Local banks are adequately auditvi by external auditors.
I. Reporting and Monitoring
4.51 During negotiations,it was aereed that DFR will prepare and furnish to the Associationconsolidated quarterly reports on the status of: procurementand disbursements, commitmentsmade under the project, progress on civil works, supply of goods, technical studies, institutionalaccomplishments, sub-sector related issues, and local currency contributionsmade by the road fund and frorn the Governmentbudget towards routine and recurrent maintenancefunding. Such reports will includereasons for any shortfalls in meeting implementationschedules and measures to be taken to make up shortfalls. DFR will update the project cost tables, monitorexpenditures under each category and assess the possible use of unallocatedfunds to meet cost overruns in other categories.
J. EnvironmentalAssessment
4.52 The project is rated as B. A thorough environmentalassessment was therefore conductedcomprising both, the direct and indirect environmentalimpacts of feeder road rehabilitation and maintenanceoperations. Annex 420 contains a summary of the key results. Recommendations of the study will be integrated into DFR's feeder road planning, design and works execution activities during project implementation. To ensure mitigationof possible negative environmentalimpacts of feeder road works, it was agreed during negotiationsthat DFR will incorporateinto its existingfeeder road guidelinesfor engineeringdesign and executionof works environmentallysound procedures, standards and practices. DFR has requested training in environmentalassessment, especially regarding the incorporationof sound environmentalprinciples into contractortraining programs. This will be provided under the project, in close cooperationwith the EPC. Experimentationwith the tarring of selected feeder roads, on a pilot basis, in high rainfall areas such as the Western Region will enable DFR to draw proper comparisonsto the performanceof traditionalgravel-surfaced feeder roads and will contribute to DFR's build-up of sound environmentalknow-how.
4.53 Feeder road design and executionof works in Ghana is now guided by the dual concepts of serviceabilityand durability. The serviceabilityconcept emphasizes the provision of all- weather access, independentlyof geometric standards,while durability is based on environmentally sound engineered and constructedfeeder roads, mainly comprisingadequate road surface, lateral and cross-drainagefor erosion prevention. Direct environmentalimpacts resulting from local runoff and the destruction of natural soil and road embankmentsneed to be minimizedusing improved design methods and the appropriate choice of rehabilitationand maintenancemethods. This new approach is in sharp contrast to the traditionaldesign speed concept. While the latter has led to over-designed feeder roads in Ghana and elsewhere, leadingto unnecessarilyhigh geometric features and incurring high constructionand maintenancecosts, rehabilitationand maintenanceworks under the project will generally remain on existing feeder road alignments.
4.54 The project will not have significantindirect effects on the environment.To avoid such impacts, feeder road rehabilitationin national parks, game production reserves and sanctuaries (see map) is not included in the project. Also, new feeder road constructionis nut intended. In a few cases, due to traffic safety problems, roadways will need widening and, specificallyon curves, realignmentto eliminate hazardous spots. Since the project intends to minimizeearthworks, vertical realignmentswill be held to the minimum, diminating the need for heavy excavation and embankments. In addition, it is not expectedthat existingland use pattern will change substantially - 32 - due to improved accessibility. A tree planting componentand labor-basedroad works will contribute to soil conservation.
V. ECONOMICEVALUATION
5.01 Proiect Benefits. Feeder roads are an important part of Ghana's road network, serving an estimated 70 percent of the populationwho live in rural areas and depend on agriculture for their livelihood. Feeder roads provide rural settlementswith access to social services and economic opportunityotherwise only available in larger centers. Most importantly,feeder roads connect rural settlementsto market centers. The poor conditionof feeder roads in Ghana has been a serious constrainton agriculturalproduction and marketing, discouragingfarmers from producing beyond the subsistencelevel. Feeder roads in good conditionare a prerequisitefor increased agriculturalproduction. They also (i) ensure increasedaccessibility to extension services; (ii) foster developmentof markets; (iii) lead to a reductionin transport cost and storage losses; and (iv) enable intensifiedcultivation, and/or an increase in land area cropped.
5.02 Economic Rates of Return (ERRs) have been calculatedfor each individualfeeder road selected for the first (560 km) and second (1,140 kmn)phases. For feeder roads being selected for the third phase (800 km), ERRs were extrapolatedfrom phase-i and phase-2 economic analyses since data on these roads are yet to be collectedand analyzed. Quantifiablebenefits include: (i) increases in agriculturalproduction, and (ii) reduction in transport costs on existing production. EstimatedERRs are high; an average of 47 percent for feeder road rehabilitationduring the first and second phases (see Table 1 in Annex 5-1). This reflects the inherentlyhigh return in this type of investment,as well as the fact that economicreturn criteria have been used systematicallyin choosing feeder roads for rehabilitation.
5.03 Unquantifiableproject benefits comprise:
(a) improved a_cessto markets, extensionservices and other social services;
(b) enhancedDFR institutionalcapacity to sustain the rehabilitationand maintenance program in the future;
(c) increasedrural employment,specifically for women as a result of labor-basedfeeder road rehabilitationand maintenancetechnology;
(d) improved transport services to rural communitiesby private freight and passenger carriers;
(e) environmentalprotection and improvementfrom improved road drainage and erosion control; and
(f) alleviationof rural poverty through the project's overall impact, and through the speciallytargeted rural transport component.
5.04 The project's rural mobility and environmentcomponent is designed to contributeto poverty alleviation. By relieving womenof the burden of headloadingtheir farm produce, firewood, water, etc., time will be saved and channelled into more productiveactivity such as cotton spinning, - 33 -
shea butter extraction and vegetablefarming. Proceeds from the latter can be used to supplement their diet as well as increase their protein intake.
5.05 The project will generate both direct and indirect employment. Direct employment has been partly accountedfor under project benefits in the form of induced production or value added. By the end of 1992, DFR is expected to have equipped 47 labor-based contractorswith each of them employingbetween 150 and 200 laborers daily. Based on a daily wage rate of US$1.50, this will mean a further infusion of wage income around US$3.6 million (equivalentto 2.5 million person- days of rural employmentgenerated) into the rural economiesof the selected road areas. This calculationis based on a 4 year project period with 1,000 km of feeder roads to be rehabilitatedby the labor-intensivemethod. These benefits, which were not considered in the economicanalysis, will be primarily for the rural poor such as women and unemployedmen.
5.06 RoadArea Prioritizationand Feeder Road Pre-Selectionfor Rehabilitation. The pre- selection of feeder roads was precededby a road area prioritizationexercise conductedjointly by MA and DFR. For each of the 32 road areas in the country, four criteria, i.e. (i) agriculturalproduction; (ii) transport cost; (iii) population; and (iv) extent of maintenanceactivities on feeder roads, were assignedweights in order to rank the 32 road areas accordingto socio-economicimportance. These weights were mutually agreed upon by MA and DFR. The variablesand their respectiveweights were used in ranking and classifyingroad areas into three priority zones, e.g. high, mediumand low. A detailed descriptionof the methodologyand the results achieved are given in Annex 3-6.
5.07 Following the prioritizationof road areas, feeder roads in the selected high and medium potentialroad areas were pre-selectedusing three criteria in feeder road corridors: (i) population, (ii) existenceof social services, and (iii) road condition. These variables were given weightsto rank the roads accordingto the potentialbenefits. The pre-selectedfeeder roads were then submittedto the relevant District Assembliesfor comment. The pre-selectionmethodology is also described in detail in Annex 3-6. The total length of the roads pre-selectedin any particular road area is dependenton the overall feeder road length in that road area and the proportion in good condition.
5.08 A total of about 1,100 km of feeder roads were initiallypre-selected for rehabilitation for the first phase of the project, out of which 560 km in four zones covering seven districts turned out to be economicallyviable and were finally selectedfor funding. For the second phase of the project, out of a total of 1,900 kn pre-selected, 1,140 km of feeder roads in eight road areas covering 47 districtstiurned out to be economicallyviable. For the third phase of the NFRRMP, a further 1,540 km of feeder roads covering additionaleight road areas have been pre-selectedfor economic evaluation. Studies are still ongoing and it is anticipatedthat about 800 km wil' be economically viable, bringing the overall length of feeder roads to be rehabilitatedunder the project to 2,500 km.
5.09 Evaluation Methodology.In using a producer surplus approach 2/, two major benefit streams were estimated: (i) increases in agriculturalvalue added due to increases in production, and (ii) reduced transport costs or savings accruingto transporters on existingproduction. The analysis of these two major benefit streams indicatesthat the increases in value added are far more importantthan savings accruingto transporters. Increased value added is due to the
2I As suggested in Beenhakker's "SimplifiedOperational Procedures for Screening and Appraisal". - 34 - intensificationof agriculture rather than expansionin area cultivatedor due to improvedtechnology. Details of the evaluationmethodology are containedin Annex 5-1.
5.10 The estimates of benefits for each phase-i feeder road were based on field data provided by consultantsfrom a study of four project zones in Accra/Volta, Salaga/Bimbilla,North Western and Ejura/Kintampo. In each zone, feeder roads were selected representingvarious levels of accessibility. In all, 1,200 households in 24 road corridors were interviewed. Similarly, the estimates of benefits for the secondphase feeder roads were based on field data collectedin the following road areas: Mampong, Sunyani,Techiman, Bekwai, Cape Coast, Hohoe, Yendi, Tamale, and Tumu. About 1,500 householdsliving along both accessible and inaccessiblefeeder road corridors were interviewed. Data for econcmic evaluationof third phase feeder roads is being collected and analyzed followingtechniques used for phase-l and phase-2roads.
5.11 EconomicReturn and Sensitivity. ERRs were calculatedfor each of 66 and 206 individual road links selected for the first and second phases, respectively. Out of the first phase roads, 42 links, with a total length of 560 kn, were considered economicallyviable with rates of return in excess of 10 percent, adopted as opportunitycost of investmentresources. For the second phase roads, 121 links, totalling 1,140 km turned out to be economicallyviable. The ERRs on the selected roads ranged form 10 percent to well over 100 percent. A summary of ERRs for each road link in the first and second project phases is provided in Annex 5-2.
5.12 ERRs for phase-3 feeder roads were extrapolatedfrom phase-i and phase-2 feeder roads. The estimate comes to an ERR of 42 percent. Slightlyhigher rehabilitationcost were assumedthan those availablefor phase-i and phase-2 feeder roads. The ERR estimate for periodic maintenance(regravelling) on 2,850 km of feeder roads comes to 83 percent. This estimate is high since periodic maintenancecosts are only about 50 percent of rehabilitationcosts while benefits remain high due to the continuedfull accessibilitywhich regravelled feeder roads provide to agriculture and the rural economy. If other project componentswith unquantifiablebenefits are included,the ovgrall project ERR comes to 44 percent (see Table 1 in Annex 5-1).
5.13 ERRs obtained for phase-1, phase-2, and phase-3 rehabilitation,for regravelling works, and for the whole project were subjectedto sensitivityanalyses assuming(i) a 20 percent increase in costs, (ii) a 20 percent reductionin benefits and, (iii) a simultaneous20 percent increase in costs and a 20 percent reduction in benefits. Results of the sensitivityanalyses are also reported in Table 1 of Annex 5-1. These indicate that project roads are equally sensitive to 20 percent cost increases and 20 percent benefit decreases. This also applies to the total project. Under a scenario in which benefits would decreaseby 20 percent and costs would simultaneouslyincrease by 20 percent, the ERR for the first phase feeder roads (560 km) would drop from 47 to 27 percent and as many as 14 out of 42 feeder roads (33 percent)would have ERRs of less than 10 percent. Under the same scenario, second phase feeder roads (1,140 km) would be affected in a similar way; 59 out of 121 road links (49 percent) would have ERRs of less than 10 percent. The decrease in ERR for regravelling works under this scenario would be even larger, from 83 percent to 33 percent.
5.14 ERR estimatesof project roads are therefore highly sensitive to simultaneouscost increases of civil works and decreases in project benefits. However, a simultaneous20 percent cost increase and a 20 percent benefit dcrease is a highly unlikely case for the followingreasons: (i) civil works base costs contain a "safetymargin", in addition to the standard 10 percent physical contingencyand design and supervisioncosts, and (ii) benefit estimatesper feeder road links were kept conservative, in addition to substantialunquantifiable benefits. Base ERRs for individualfeeder road links are high and reflect: (i) the high costs of previous feeder road construction,the benefits of - 35 -
which can be restored with relatively limitedadditional investment;and (ii) the serious constrainton agriculturalproduction beyond the subsistencelevel posed by lack of access. Base ERRs are therefore consideredto be robust and reliable. In addition, DFR has agreed to recalculateERRs for phase-i feeder roads as soon as actual constructioncosts become available. A similar exercisewill be done for phase-2 and phase-3 rehabilitationand for regravellingworks. The monitoringand evaluation study will, inter alia, collect socio-economicdata after completionof road works to monitor and measure the socio-economicimpact of feeder road rehabilitation. This will also allow re- estimationof benefits for selected feeder road links.
5.15 Project Risks. There are three project risks: (i) difficulties in developinga sustainable feeder road maintenancemanagement system; (ii) constraints in DFR institutionalcapacity; and (iii) increases in cost of feeder road rehabilitationworks. If adequateresources from its central budget and from district contributionsare not assured by GOG to carry out sufficientroutine and recurrent maintenance,the feeder roads will fall into disrepair in a few years followingthe rehabilitationand periodic maintenanceinvestments and hence the anticipatedbenefits will not be realized.
5.16 The second project risk relates to DFR's limitedinstitutional capacity. If during project implementationDFR would not been able to recruit the required personnel to administerthe area offices and give technicalsupport to the districts, then this would have a negative effect on project results. The project will be a strain on DFR personnel in view of substantialproject implementationand supervisionrequirements. Also associatedwith this risk is the on-goingprocess of decentralizationbeing pursued by the Governmentof Ghana.
5.17 It is also anticipatedthat if wage rates and the price of petroleum products increase, the costs of rehabilitationand maintenanceworks are likely to increaseproportionately. If the local rate of inflation is not controlled, it will have the same effect on the cost of civil works components.
5.18 These risks are well known and will be minimizedby the followingmeasures under the project:
(a) ensuring that adequate funds are made available by Central Governmentbudgetary allocationsfor routine and recurrent maintenance;
(b) deliberateefforts have to be made by DFR to attract middle level professionaland technicalstaff as well as technicalassistance to fill critical positions; and
(c) adoption of cost effective methods of design and of paymentprocedures enabling prompt payments to contractorsfor works completedunder the project is essential. Design methods and payment procedureshave been reviewed and agreed between DFR and IDA.
VI. AGREEMENTSAND RECOMMENDATION
6.01 In additionto standard covenants,the followingmatters were agreed with the Govermment(MRH, DFR and MFEP):
(i) The appointnent of a deputy director of planning, not later than December31, 1992; and the establishmentof some 20 new road area - 36 -
offices during the project implementationperiod, as needed and starting July 1, 1992(para. 3.08);
(ii) The expansionof DFR at the district level followingGovernment decentralizationobjectives by extendingits technicalsupport to the districts and, starting July 1, 1992, as needed the training of about 80 additional foremen for the supervisionof district feeder road maintenanceactivities (para. 3.09);
(iii) The tarring of selectedfeeder roads in high rainfall areas on a pilot experimentalbasis, provided the roads selected are economically viable (para. 4.04);
(iv) Sufficientannual budgetary allocationsfor its counterpart contributions from the road fund and its budget to the costs of the project, the said contributionsbeing estimatedby the Borrower and the Associationto amount, in the aggregate, over the project period to US$8.4 million equivalent;the Borrower will furnish, through DFR, to the Associationfor its review, three months prior to the start of the respective period, the annual and quarterly estimatesof project expenditures,including the required counterpartfunding by the Borrower; and the Governmentwill deposit into DFR's accountbefore the end of each quarter, starting in fiscal year 1993, the Borrower's contributionsto the financingof the project as set forth in the quarterly estimatesreferred to above (para. 4.24);
(v) Sufficientannual budgetary allocationsfor the recurrent and routine maintenanceof feeder roads in its budget in line with the agreed upon funding schedule for the 1993-1996period, namely the equivalentof US$1.87 million in fiscal year 1993, the equivalent of US$2.75 million in fiscal year 1994, the equivalentof US$3.61 million in fiscal year 1995 and the equivalentof US$4.48 million in fiscal year 1996 (para. 4.26);
(vi) DFR will be provided with the necessaryfunds at the beginningof each quarter based on the followingdetailed GOG funding schedule for routine and recurrent feeder road maintenance(para. 4.27):
Period Year 1: Year 2: Year 3: Year 4: Activity CY-1993 CY-1994 CY-1995 CY-1996
MaintenanceFunds per Year US$1.87m US$2.75m US$3.61m US$4.48m MaintenanceFunds per Quarter US$0.47m US$0.69m US$0.90m US$1.12m
(vii) Retroactivefinancing up to US$2.0 million equivalentwill be allowed under the credit, on accountof eligible payments made after January 1, 1992 (para. 4.33); - 37 -
(viii) Implementationperformance of the project will be monitored against a set of performanceindicators and monitorabletargets (para. 4.36);
(ix) A mid-term project review involvingIDA, cofinanciersand various Governmentagencies will be carried out not later than December 31, 1994, to evaluate and assess (i) overall progress made in project implementation;(ii) performanceof DFR as executingagency; (iii) the adequacyof the Borrower's counterpartfunding as well as the level of budgetary allocationsand actual expendituresfor routine and recurrent maintenance;and (iv) the need for redesign and/or restructuringof project components. The mid-term review will also (i) assess the results and recommendationsof completedstudies, ongoing technical assistanceand training programs, and (ii) agree with the borrower on implementationof findings, including(a) the organizationand maintenancestudy; (b) the maintenanceperformance budgeting system development;(c) the domestic contractorassessment and development study; (d) the institutionalarrangements made for district-based routine feeder road maintenance;(e) DFR staff and domestic contractor training programs; (f) progress of the rural mobility and environmentalcomponent; and (g) monitoringand evaluation studies (para. 4.37);
(x) DFR will prepare and furnish to the Associationconsolidated quarterly reports on the status of: procurementand disbursement, commitments made under the project, progress on civil works, supplyof goods, technical studies, institutionalaccomplishments, sub-sector related issues, and local currency contributionsmade by the road fund and from the Governmentbudget (para. 4.51); and
(xi) DFR will incorporateinto its existingfeeder road guidelines for engineeringdesign and executionof works environmentallysound procedures, standards and practices (para. 4.52).
6.02 Condiotiosof Credit Effectivenessare:
(i) The creation of a planning division at DFR head office (para.3.08);
(ii) The appointmentof the contract managementspecialist (para. 4.09);
(iii) The appointmentof two qualifiedaccountants to assist DFR in carrying out all financial aspects of project implementation(para. 4.10); and
(iv) The Borrower will deposit into DFR's account in Cedis the equivalent of US$300,000as its counterpartcontribution to the financingof the project for fiscal year 1992 (para. 4.24).
6.03 On the basis of the above agreementsreached, the project is suitablefor an IDA credit of US$55.0 million equivalent on standard IDA terms. .REPUBLICOF GHANA NATIONAL FEEDER ROADS RERARILITATIAN AND MAINTENANCEPROJECT Ministry of Roads and Highways OrRanizationChart
I PNDC Secret"
Ch. _fManagement Und TPM) MRH Regpora Budeet Depsoey Comitatee PNDC StaridF c CoeSCmSoees
STAFF DEPAGTMENTS
Director Techdca Director Chief Adiniinistration Chief
afmmid ||CooSnaSon eerh l| Mf=9t|| Fnlc n
UNE AGENCIES
DFR DUJR GHA
0h - - 39 -
Annex 2-2 Page 1 of 4
REPUBLIC OF GHANA
NATIONAL FEEDER ROADS REHABILITATION AND MAINITENANCEPROJECT
AdministrativeStructure of Decentralization
A. Departmentsunder District AssemblyAuthority
I. The 22 departments to be decentralized are:
- Education Service - Library Board - Information Services - Social Welfare - CommunityDevelopment - Town and Country Planning - ** Ghana Highway Authority - Public Works - Parks and Gardens - Rural Housing and Cottage Industries - Statistical Service - Births and Deaths Registry - F'orestry - Controller and Accountant-General Medical Officer of Health - Departmeri' of Feeder Roads - Fire Service Departmnent - Animal Health and Production - Fisheries - Agricultural Extension Services - Crop Services - Agriculture Engineering.
** Due to the national character of trunk roads (as opposed to the district character of feeder roads), the Ghana Highway Authority appears to have argued successfully agzains its decentralization.
B. Overall AdministrativeStructure
2. While the principlepolitical and administrativecomponent of the decentralizationstrategy is the District Assembly, there are several levels of organization involved, each of which plays an operational, coordinating or consent role in support of district development activities. The overall administrativestructure consists of the followinglevels:
(a) Provisional National Defense Council (PNDC). The Provisional National Defense - 40 -
Annex 2-2 Page 2 of 4
Council or "Council" is the highest political authority in Ghana. With respect to decentralized operations, its role is to approve district developmentplans and budgets forwarded to it through Regional Coordinating Councils. At the national level, coordination of plans is the responsibility of the National Development Planning Commission which forwards recommendationsto the PNDC via a Committee of Secretaries. The PNDC maintainsexecutive authority over District Assembliesand can, for instance,create or dissolveAssemblies, alter districtboundaries and change Assembly functions by way of legislativeinstrument.
(b) Regional CoordinatingCouncils (10). Decentralizationwill significantlyreduce the role of regional governmentfrom that of an active administrativebody to one of a general coordinationbody. The ten RegionalCoordinating Councils do not operate as legislative bodies per se, nor do they have direct executive authority over District Assemblies. Rather, they meet once a year (minimum)to review, coordinateand submit to the PNDC for approval the plans and budgetsof District Assembliesin their region. Their key role is to assure that projects which encompassmultiple districts are properly coordinated. Membershipof Regional Councilsis comprisedof all District Secretariesand Presiding Membersof District Assembliesin a region, a RegionalSecretary (appointed by PNDC) and his/her ex officio deputies.
(c) District Assemblies(110). District Assembliesare the key legislativeand administrative component of the system. They have both legal and executive authority over all governmentactivities in a given district and, significantly,their accountabilityis directly to the PNDC, not to regionalauthorities. For more details on the proposed structure of District Assemblies,see para. 3 to 10 below.
(d) Town/Area Councils and Unit Committees. These sub-districtadministrative units can be establishedvia legislativeinstrument by DistrictSecretaries on recommendationby the Assembly and with approval of the Council. There is no specific itemizationof duties for these organizations, such being specified in the legislativeact at the discretion of district authorities.
(e) VillageCommittees. Villagecommittees are not formal units of government. However, numerous committeesand village groups are organized on an ad hoc basis to address development issues. These committees/groupsare organized on a self-help basis in keeping with the major theme of decentralization. Since the inception of the decentralizationstrategy there has been a substantial increase in the number of village committees, the majority of which have been organized by various government departmentsto assist efforts in a given sector. DFR's "VillageRoad Committees"are examplesof this level of organization.
(f) MetropolitanAssemblies. Althoughnot directly relevant to the NFRRMP, it shouldbe noted that the three urban areas of Accra, Kumasi and Sekondi-Takoradiare governed by MetropolitanAssemblies with powers similar to District Assemblies.
C. Structure and Staffing of District Authorities - 41 -
Annex 2-2 Page 3 of 4
3. District Assembliesare comprisedof one representativefrom each sub-districtelectoral area, a District Secretary and additional centrally appointed members not exceeding one-third of total membership. Appointedmembers are typically selected on the basis of traditional authority (i.e. chiefs or their representatives)and/or affiliationwith community, educational,religious, NGO, private sector or similar groups, but do not represent these directly. The relative number of appointedmembers vary with the size of districts, but in most cases appear to nearly equate to one-third of Assemblymembership. Assembliesgenerally consist of about thirty to sixty members, although some approach 100 members. Each Assemblyelects a PresidingMember by two-thirdsmajority who serves for one year. Assemblies are required to meet in formal session at least four times per year.
4. An ExecutiveCommittee, comprising no more than one-thirdof the total Assembly,meets in between Assembly sessions to exercise executive and coordinating functions. The Executive Committeecannot, of course, preemptthe legal and legislativefunctions of the Assembly. However, the Executive Committeedoes assist the District Secretary to manage the day-to-day administrationof the District. It plays the key role in linkingthe larger political Assemblyto district management,primarily by overseeing the following standard sub-committees:
- Economic and Social Development - Social Services - Technical Infrastructure - Justice and Security - Finance and Administration - Ad hoc and district-specificsub-committees.
5. Heads of governmentaldepartments are required to attend meetings of relevant sub- committees,as non-votingmembers, to advise on their sectoral activities. DFR staff, for instance,would be expected to attend the TechnicalInfrastructure Sub-Committee in each district.
6. The District Secretary (DS), appointed by Central Government, is the principle administrator of the district, Chairmanof the Executive Committeeand voting member on the Regional CoordinatingCouncil. The DS supervisesday-to-day operations on behalf of the Assemblyand a "core" staff organizedunder:
- Deputy Director Planning and Budget Unit; - Deputy Director Administration; and - Internal Auditors (Local GovernmentInspectors).
7. Each District has a "Development, Planning and Budget Unit" headed by a Deputy Director (DDPBU). This unit providesa secretariatto the ExecutiveCommittee in additionto managing sub-departmentsdealing with budget, social, economicand spatial developmentplanning activities. A DeputyDirector of Administration(DDA) would overseesub-departments for treasury, municipalservices and internal administration(e.g. personnel). Hypothetically,each of these Deputy Directors would have staff complementsto run sub-departments.
8. In consultationwith an inter-ministerial"Task Force for Programmingand Implementation of Decentralization",discussions currently underway within the Ministry of Local Government include - 42 -
Annex 2-2 Page 4 of 4 a proposal to add a CoordinatingDirector (CD) to district staff who would be placed directly under the DS. The CD's role would emphasize management,while the DS would concentrateon political and policy matters. No decision has been made on this proposal.
9. All districs have constituted Assemblies, formulated Executive Committees and are staffed by at least District Secretaries and some manner of core staff (with the exception of a CoordinatingDirector which is still under consideration). However, numerousvacancies exist, beginning at the Deputy Director level. Nearly all districts have a significantnumber of vacant posts, especially among core staff which would support DDPBUs and DDAs. One response to this situation is the Government's creation of a "Mobile Budget Unit" to assist districts with budget preparation and elementaryadministrative matters.
10. The structure and staffing requirementsoutlined above are still very much in the process of being developedand cannot be assumedto be adequatelyoperational in all but a few, relatively large districts and metropolitanareas. This still limits the District Assembly's capacityto assume managerial and administrativesupervision of line departmentssuch as DFR.
AF4IN November 1991
(AdmStrDe.NFR) - 43 -
Annex 2-3 Page 1 of 2
REPUBLIC OF GHANA
NATIONAL FEEDER ROADS REHABILITATION AND MAINTENANCE PROJECT
District Planning and Composite Budgeting Process
1. Under PNDC Law 207, District Assemblieswill be responsiblefor preparing and submittingannual developmentplans and budgets to the PNDC for approval. All development activities undertakenin the districts will therefore be subject to PNDC authority and, in turn, programs and projects approved in these plans will be executedby departments, subject to District Assembly authority.
2. When PNDC Law 207 is fully implemented,all district-leveldepartment operations will come under district budget control. District Assemblieswill prioritize departmentalactivities. Funds (includingsalaries) will be allocatedto districts for onward disbursementto departments. All field staff will be paid through district channels. Operationalguidance and disbursementsof contractorfees will be under district control.
3. As envisioned in the law, the principal budgetary mechanismfor effectingthis change would be the requirementthat districtscompile and administerannual "compositebudgets." Compositebudgets would contain aggregate revenue and expenditureestimates inclusiveof the district assembly, district administrationand all departmentsunder district administration. The development plans and programs of each departnent are also to be included.
4. The annual process of compositebudgeting is relativelystraightforward. District secretaries would request technicalplans and corollary budget estimates from the twenty-two decentralizeddepartments. The executive committeeof the District Assemblywould receive departmentalproposals and integrate these proposals with their own plans for spendinglocally generated revenues. The resulting compositebudget would then be consideredby the District Assembly. Approved budgets and developmentplans would be forwarded to the Regional CoordinationCouncil, which passes them to the NationalDevelopment Planning Commission,which passes them to the PNDC.
5. Regional CoordinatingCouncils and the NationalDevelopment Planning Commission are largely conduits to the PNDC. The CoordinatingCouncils have very limited powers to substantivelyreview proposed projects which involve more than one district. The National DevelopmentPlanning Commissionprepares analysesof individualand aggregatedbudgets, but has no review or approval prerogatives. After approval by the PNDC of district budgets, funds would be released directly to the districts for expenditureagainst approved estimates.
6. In the case of DFR, annual budget proposals would presumablyinclude an inventory of feeder roads (includingaccurate reports of current condition);proposed priority activities and estimates of their associatedcosts; identificationof potential funding sources and amounts; - 44 -
Annex 2-3 Page 2 of 2
identificationof projects which require coordinationwith other districts; and recommendationsfor District Assemblyaction.
7. No serious effort to implementthe compositebudgeting process has been undertaken so far. With few exceptions, the "decentralized'departments continue to plan and budget from the center. There is considerablevariation in the extent to which districtsplan, budget and administer in coordinationwith the local offices of the departments.
8. A review of selectedtraditional budgets indicatesthat they contain reasonablydetailed revenue figures, but expenditureestimates are generally limited to District Assemblyand core administrativeexpenses. Departmentalexpenditures, where available, are included as notationson selected projects which are expected during the fiscal year. Complete departmentaloperating budgets are not provided. Indeed, departmentsmay be unable to provide such informationdisaggregated by district.
9. Review of a very limited number of current district budgets suggests the need for improvementand a certain degree of standardizationof budget categories. No district budget reviewed includeda discrete line item for routine feeder road maintenance. It is rather more typical for budgets to include a line item for "communityinitiated projects," a portion of which may be used for feeder road rehabilitationand/or periodic maintenance.
10. Alternatively,a budget might estimate the cost of rehabilitationor periodic maintenanceof a particular feeder road that the district wishes to undertake. The budgets reviewed containedno informationon DFR feeder road activities, despite numerousDFR projects in the districts in question. District budgets are not yet designedto itemize these projects, let alone actually manage project expenditures.
AF4IN November 1991
(CompBudg.NFR) REPUBLIC OF GHANA NATIONAL FEEDER ROADS REHABILITATION AND MAINTENANCE PROJECT Department of Feeder Roads Organization Charts
Administration||Maintenance Developmnent| cocoalp k nning S wvey& Dw elopinefd A ft nistration Accounts P eronnel & Contract Road Me chanics& Regions
pleads De~signre Deepnin Amis,tinPsu Training Administration Mairdn-teace Procurement g
ii~~~~~~~~~~~~~~~~~~~~~~-
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I l 0 1 Rtegional Enigineer
Aooourns Regional StaNt Mechanical Project Storesand uafyEngineer Supervisor _ Engineer Admnstrabon Surveyor CapialEiase LabourBase Mechanics S.T.O.Ouanfity T.O.Quantity
AccourdsAdrnirisSion Stores Residern eidn Assistant Assistanl Assistant | aficersOllicers Olficers ~Engineer Egneer Engineer Engineer Engineer Contracts Mrmat Siam Contracts1I Contracts11
L | En9neerl | | ~~~~~~~~Enginel|
|Fosamn| Forernan Fme *rOn Forexrn|
I Fblhcal Po ||alDrahase TowedGrded | , 1 |Dist || Dishia2 jSactme Tearn| Tearn II
< < _ <~~~~~~~. 1 2 3 4 5 6 7 E 9 10
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01 - 47 -
ANNEX 3-2 Page 1 of 1
REPUBLIC OF GHANA
NATIONAL FEEDER ROADS REHABILITATION AND MAINTENANCE PROJECT
FEEDER ROAD CONDITION AND SURFACE TYPE BY REGION AS OF AUGUST 1991 (in Km) c======a======a======a== REGION CONDITION TYPE SURFACE TYPE
GOOD FAIR POOR GRAVEL EARTH BITUMEN TOTAL LENGTH
Greater Accra 74 193 551 530 144 144 817
Volta 232 488 1,628 907 1,426 15 2,348
Eastern 386 811 1,118 1,044 1,269 2 2,315
Central 162 1,112 707 990 928 63 1,981
Western 205 616 1,518 869 1,470 - 2,339
Ashanti 808 277 2,243 1,098 2,161 69 3,328
Brong Ahafo 627 453 2,277 976 2,381 - 3,3S7
Northern 318 809 1,254 1,034 1,346 - 2,381
Upper East 148 198 606 469 483 - 952
Upper West 368 112 968 422 1,026 - 1,448
TOTAL 3,327 5,069 12,868 8,338 12,634 293 21,265 PERCENT 16 24 61 39 59 1 100 mm mmm mm mm mmmm m mm mm mm zmm mminmmin="Xt===D5ssss - 48 -
ANNEX3-3 REPUBLICOF GHANA Page 1 of 1
NATIONALFEEDER ROADS REHABILITATION AND MAINTENANCEPROJECT
DFR PERSONNELAT POSTAS OF AUGUST1991
HQ/REGION CIV. PLAN. QUANT. ENG. TECH. F/MEN ADMOIN. OPER- DRIVERS ARTISANS LABS TOTAL ENG. OFCR. SURV. TECH. OFCR. SUPT. STAFF ATORS RERS ALL CLASS
Headquarters 8 3 3 1 3 - 32 20 - 5 75
G/Accra 1 - - 1 5 - 11 - 2 5 3 28
Volta 2 1 6 18 9 12 7 6 35 96
CentraL 1 - 1 1 10 14 5 9 2 2 32 77
Western/ (Takoradi) 2 - - 1 7 11 11 6 5 6 19 68
cwiawsoDist.) 2 - - - 2 7 9 15 8 1 13 57
Eastern 4 - 1 9 18 20 21 13 7 32 125 (Koforidua) - - - 2 8 7 10 2 11 6 13 59
tK dua dist.)/ PANSCAD I - - 5 3 3 5 4 3 - 24
Ashanti 1 - - 7 8 10 13 7 15 9 13 83 (Kunasi) 2 - 1 2 7 27 - 9 5 2 42 97
NanpongDist. - 1 - 2 12 - - - 12 27
Bekwai Dist. 3 - - 1 1 14 1 7 6 4 19 56
Brong Ahafo 5 - 1 4 8 43 13 16 11 6 73 180 (Sunyani) 2 - 1 1 6 4 9 5 6 5 25 64
(Goaso) 4 - - 1 - 7 3 5 4 2 5 31
(Techiman) - - - 2 - 1 - - 3
Northern 6 - 1 4 6 12 12 10 10 7 30 98 (Tamule) 3 - 2 8 14 9 5 4 3 38 86
Upper West 1 4 3 6 10 2 - 14 40
Upper East 1 - 2 3 4 8 4 1 3 31 57
TOTAL 49 3 9 39 101 219 196 148 136 77 454 1431 PERCENT 3 0 1 3 7 15 14 10 10 5 32 100 s-ag-===w==wn3=B==ea2e=mB c=aFts-=aa==a==B=as=aaa="v - 49 -
Annex 34 Page 1 of 2
REPUBLIC OF GHANA
NATIONALFEEDER ROADS REHABILITATIONAND MAINTENANCEPROJECT
The Rod CommitteeSystem
1. A hierarchical structure of committeeshas been devised for the purposes of community participationin planning and executionof voluntary feeder road maintenance. The system has been in place on an experimentalbasis in some districtssince 1986, with mixed results. It consists of:
(a) A District Road Committeewhich is at the top of the hierarchy of committees. It is chAiredby the District Secretaryand includes representativesof the major interest groups in the district. The relevant road area engineerand foreman from DFR attend. This committeehas an importantrole in selectingfeeder roads to be the subject of maintenance. In addition, PNDC Law 207 requires district level participation in the planning and budgetary process. Districts discuss their priorities and reconcile conflictingdemands. DFR's regional engineerstake these views into account when formulatingregional budget proposals.
(b) Central Road Committeeswhich are at the next level down in the hierarchy of committees. These committeesare in charge of formulatingarrangements for allocationof maintenanceresponsibilities for specificsections of the feeder road network to specificcommunities.
(c) Village Road MaintenanceCommittees which have the responsibilityfor ensuring the physical maintenanceof a specific length of the feeder road network. 'They are provided with tools, technicaladvice and training by DFR via its foremen. Organizationof work dependson communitypreferences. Sometimesit may be done by a gang of 8-10 people on a full-time basis. In other situationsit may be done on a lengthmanbasis. Villagers are sometimesmobilized to assist in spot improvement works (recurrent maintenance)which are executed by DFR's MOREMATunits. Tbere is, however, a tolerance level for unpaid labor on such works which can have negative effects on the willingnessto undertakevoluntary routine maintenance.
2. The Road Committeesystem is used primarily to organize voluntary labor to perform roadside and drainage maintenance,tasks which can be done entirely by hand labor. Routine road surface maintenanceis performed by SIAM units using towed graders and other equipmentto assist voluntary laborers and to provide backup where voluntary labor is inadequate. The role of the SIAM units is also to fill gaps left by MOREMATunits which respond to emergencyrepair and heavy blading priorities set by District Assemblies.
3. It has generally been assumedthat routine maintenanceon feeder roads in Ghana can be carried out with considerabledependence on voluntary communitylabor, managedthrough the above Road Committees,organized primarily by district authorities which would rely on DFR for technicalsupport. VQluntarylabor is assumedto be a workable solution to the dilemma of routine maintenancefor a greatly expandednetwork of feeder roads. Field evidence shows that this conclusionis hard to support. - 50 -
Annex 3-4 Page 2 of 2
4. There have been serious problems with voluntary communitylabor from the outset and these continue to exist. DFR itself has not yet adequatelyaddressed the breadth of management, organizationand technical problems which this approach requires. DFR's own experience with road committeesand voluntary labor on feeder roads rehabilitatedunder the labor-based contractor scheme has increasinglyshown it to be much more complexand management-intensivethan originally assumed. Indeed, most field staff interviewved consider it to be the least effective option available.
5. DFR apparentlyintends the road committeesystem to be a 'free-standing" mechanism to transfer maintenanceresponsibility to districts and communitiesonce feeder road rehabilitation works are completed. The organization, managementand implementationof maintenanceactivities would be basically operated by non-DFRdistrict personnel in coordinationwith village leadership.
6. The distinctionbetween technicalversus organizationaland managementsupport is critical. While DFR would provide technicalassistance to committeesand maintenancegroups, ajj:i organizationaland managementtasks would be done through committeessupported by District Assembly authorities. Ideally, DFR would then be free to concentrateon feeder road rehabilitation and periodic maintenanceactivities (as it has done in the past), limitingits role in routine and recurrent maintenanceto engineeringinput and spot improvementsrequiring mechanizedequipment.
7. The success of the model dependson: * the capacity of district officialsto organize and maintain the road committeesystem;
* the willingnessand ability of communitiesto consistentlyprovide voluntary labor over time which can in turn perform routine maintenanceactivities to basic technical standards; and
* the availabilityand scheduling of DFR technicalstaff, particularlyat the foreman and road area engineer level.
8. As a means to encouragecommunities to assumeresponsibility for routine maintenance,they were initially given an 'incentive" in the form of food-for-workrations. The incentive is designedto stop after six months. It is expectedthat the communitywill voluntarily continuemaintaining feeder roads thereafter.
9. The road committeesystem will be investigatedand tested further. Districts which have already establishedwell-functioning road committeeswill be allowed to incorporatethese into their NFRRMP road maintenanceactivities. However, no general effort to stimulatedevelopment of road committeesin additionaldistricts will be undertakenunless and until field research demonstratesthe utility of a country-wideroad committeesystem.
AF41N November 1991
(RoadComm.NFR) - 51 -
Annex 3-5 Page I of 5
REPUBLIC OF GHANA
NATIONAL FEEDER ROADS REHABILITATION AND MAINTENANCE PROJECT
Experiencewith VoluntaryCommunity Labor
1. Recent experiencewith voluntary communitylabor for routine feeder road maintenance is, at best, mixed. Indeed, there is little reasonto assumethat voluntary communitylabor will effectively operate over the long-term and that it can accommodatethe needs of maintaininga greatly expanded feeder road network. This conclusionis based on the suppositionthat, as the network expandsover the proposed eight-year NFRRMP, it will be increasinglynecessary to have an effective routine feeder road maintenancesystem which is:
* predictable in terms of regular schedulingand executionof maintenanceactivities;
* reliable in terms of technical control of maintenancetasks; and
* manageablein terms of supervision,cost control and technical staff input.
2. Experience in Ghana (as elsewhere)suggests that, with respect to ongoingroutine feeder road maintenance, voluntary communitylabor is neither predictablenor reliable, nor amenable to the management of relatively intensive, repetitive tasks required by routine maintenance performance standards. This is not to suggest that community self-help is undesirable or cannot be used for some maintenanceactivities. Rather, it is simplythe case that communityvolunteerism is appropriatefor some, but not all developmentactivities. Based on current experience, routine feeder road maintenancedoes not appear to be one of them.
3. Recent field assessments on the effectivenessof routine feeder road maintenance by voluntary communitylabor have resulted in the followingobservations supporting the above viewpoint:
(a) Ineffective Road Committees. DFR field staff acknowledgethat most road committees are either ineffectualor completelyinoperable. Political authoritieshave not yet proved effective in organizingand sustainingthe systemover time and have limited influenceon communitypriorities and decisionsabout which projects they will undertake. In contrast to the theoretical model of a free-standing road committee mechanism which would ensure ongoing routine feeder road maintenance, there is no "system" which is self- perpetuating. Essentially, this means that DFR field staff must personally mobilize voluntaryroutine feeder road maintenanceeach tine it is required. Road committeesare most effective during the planning, construction and incentive phase, but there is a general pattern of gradual decline and loss of enthusiasmafter feeder roads have been completed and incentiveswithdrawn. Communityenthusiasm is invariably high at the beginning of feeder road rehabilitationprojects. For example, several communitieshave voluntarily cleared bush prior to a contractorarriving on site. However, once a feeder - 52 -
Annex 3-5 Page 2 of 5
road is rehabilitated, communityand district priorities naturally begin to shift to more pressing problems. From the community'sperspective, the road is "finished". Some communitieshave also begun to assert that roads should be maintainedby Government or by the contractor who built them.
(b) InadequateFollow-up. The relativelyhigh level of follow-uprequired to organizeroutine feeder road maintenancealso poses a problem. Communityorganization is management- intensive, especially for projects which entail frequent, repetitive and consistent inputs such as routine feeder road maintenance. District Assembly staff are typically involved in setting up road committees,but cannot and/or do not allocate the amount of time needed to support community leadership to ensure that feeder roads are, in fact, continuouslymaintained. For example, the frequency of village visits by Community DevelopmentOfficers varies from one- to six-monthintervals. Higher level officials, such as District Secretaries, may visit a given communityonly once a year.
(c) Conflicting DFR Staff Priorities. DFR field staff consequentlyspend an inordinate amount of time trying to organize communities,manage road committeesand supervise volunteers (if and when they are available). While they have done a commendablejob thus far, DFR staff are technicians, not political organizers, and are not trained in communityorganizing skills. As the maintainablefeeder road network expands, they may be impelledto spend even more time on the political task of organizingcommunities and less on technical work. This could have serious implicationsfor the seven year NFRRMP, since the work load of DFR engineers will significantly increase as the program is implemented. Field staff already encounter this problem in districts where a significant number of feeder roads have been completed under the labor-based constructionprogram. The modest success of voluntarymaintenance programs is due to the commitmentof DFR technicaland field staff. They appear to have done an excellent job of working with local chiefs, other community leadership and voluntary workers themselves,even in caseswhere officialdistrict administrativesupport has been relatively ineffectual. Nonetheless,it must be recognizedthat this consumesa lot of time, is not being accomplishedthrough a self-perpetuatingroad committeesystem and is dependent on the personal commitmentand skills of individualDFR personnel.
(d) Lack of Incentives. Community participation declines after incentives have been removed. Reasons for this range from the obviousassumption that people are unwilling to continue working for free when they have been working for some compensation,to situations in which communitiesare suspicious that incentives are being withheld by either district or DFR staff. Many communitymembers are also aware that the Ghana Highway Authority pays reasonablewages for routine trunk road maintenanceunder its singlemancontractor system and therefore do not see why they should not be afforded the same opportunity.
(e) Road Quality.As noted in other reports, community participation and enthusiasm declines in relation to the qualityof the road. A newlyrehabilitated road may not - from - 53 -
Annex 3-5 Page 3 of 5
the community's point of view - receive priority over other communal labor demands, precisely because it is in good shape.
(e Inadequate Technical Performance. It is also difficult for the community at large to respond to the need for frequent preventive maintenance performed to the technical standardspreferred by DFR engineers. DFR field staff reported that routine maintenance performed by volunteerson communalworkdays often falls short of expectations. While grass cutting and bush clearing are relativelystraightforward, ditch and culvert clearing can be more complexif there are significantdrainage problems. It is nearly impossible to provide training and supervisionof these tasks on a consistentbasis, since each task , * may be done by a different volunteer on any given workday. Field staff report that volunteers who previously worked on feeder roads under labor-based contractors are much better at performing routine maintenancetasks because they tend to have a better understandingof technical standards. Nonetheless, because of the voluntary nature of this work, it is extremelydifficult for DFR staff to insistthat labor redo tasks to a higher standard.
(g) Variable CommunityParticipation. Communityparticipation is highly variable and is influencedby many events outside of the control of road committees,DFR and district authorities. It is certainly inescapable that participation drastically declines during planting and harvesting; but also deaths, sickness, more pressing developmentneeds or local concerns and many other variables impact the amount of communityparticipation at all times during the year.
(h) Uncertain Labor Availability. Labor availabilityon a given workday is also a factor mitigatingagainst reliable road maintenance. During workdays, communallabor groups are typically divided among several developmentactivities. On a given day, there may not be enough labor available to accomplish all projects. Routine feeder road maintenanceis particularlysusceptible to this circumstancebecause the tasks are arduous, repetitive and less enjoyablethan, say, helping a large group construct a storage shed. There may occasionallybe too much labor, but this also poses a supervisionproblem. Since the communityprefers to work as a group, fifty people may be doing what ten people should do, making it difficult to manage outputs. In either case, there is no assurance that voluntary labor will accomplisha given set of routine maintenancetasks or that they will do them to an acceptablestandard.
(i) Competition for Community Labor. Demands on community voluntary labor are escalating. Partially as a result of decentralizationpolicies, many other sectors are increasing their dependenceon communityparticipation. Several District Secretaries noted that competitionamong projects is increasingand that communitiescannot manage to do everything asked of them exactly when it is asked of them. Voluntary labor is called upon to construct and maintain secondaryschools, pit latrines, small dams, cocoa sheds, feeder roads, health outposts,storage facilitiesand other communitystructures as well as respond to agricultural, civic and communal activ;ties (such as weddings, - 54 -
Annex3- Page 4 of 5
funerals, illness, etc.). Traditionally,communal tasks are performed one time per week, but this too may vary depending on the season, a given community's cohesion, the strength of communityleadership and a variety of other factors. In these circumstances, communitiesnaturally decide priorities according to multiplefactors. Incomegeneration, family and communalobligations and immediateproblems will of course receivepriority. Performingarduous routine maintenanceon a relativelyfunctional feeder road easily slips to the bottom of the list.
(i) lse and Length of Road. Usage and length of feeder roads seem to influencevoluntary communityparticipation. DFR field staff consistentlynoted that there is less enthusiasm to maintainstretches of transit roads, presumablybecause communitiesmay feel they are maintaining roads used as much, or more, by others, as by themselves. It has been easier to organize maintenancein areas where a feeder road terminates in proximityto the community supplying the labor because the road's contribution to the community developmentis more immediatelyevident.
(k) Distance Between Communities. The distance between communities also affects maintenance activities. The length of a feeder road poses both a logistical and an accountabilityproblem. Communitiesare, in principle, assigned a lengthof feeder road to maintain. If there is a great distance between two communities(e.g. approximately six kilometersor greater) then volunteers have to consume a lot of time and energy to reach the farthest parts of their road, and they have relatively less time to perform maintenanceactivities once they reach it. It is sometimesunclear, or in dispute, which stretch of road belongs to which community. So the tendency is that parts of the road mid-waybetween communitiesreceive less or no maintenance.
4. Perhaps the most importantpoint emerging from the foregoingobservations is that the road committeesystem is not at all self-perpetuatingas the modelenvisions. District and village officials certainly play a role in initially organizingroad committeesand in many instances make efforts to see that they continue to operate. But it is clear that road committee effectivenessis highly dependenton continualpersonal interventionof DFR field staff. The core of this dilemma is that the system relies on voluntary communitylabor. It will therefore always require immenseorganizational efforts to keep the system running. If this is the case, demandson field staff will not diminish,but will rapidly increaseas the NFRRMP is implemented.
5. It is the conclusion of this analysis that the voluntary community labor approach is extremely problematic, if not unworkable as a long-term primary strategy for routine feeder road maintenance. Given the magnitude of expansion of the feeder road network envisioned under the NFRRMP and the size of the Government's long-term investmentin feeder road rehabilitationworks, reliance on community volunteerism cannot be recommended as a means to assure proper routine maintenanceso that the system does not rapidly deteriorate.
6. It is recommendedthat routine feeder road maintenancebe shifted from a voluntary to a contractor-based system similar to the singleman contractor approach used by the Ghana Highway - 55 -
Annex 3-5 Page 5 of 5
Authority. This obviously requires a substantialfinancial commitment. However, the alternative is to rely on a voluntary system which is unreliableover the long term, leading to an inevitabledeterioration of the rehabilitated feeder roads. The question remains as to how to finance and organize routine maintenanceif it is to be reoriented to a contractor-basedsystem. Since the Governmentof Ghana has been pursuing a decentralizeddevelopment strategy, the idea has been advancedthat District Assemblies must assume this task.
AF41N November 1991
(VoComLab.NFR) - 56 - Annex 3-6 Page 1 of 5
REPUBLIC OF GHANA
NATIONAL FEEDER ROADS REHABILITATION AND MAINTENANCE PROJECT
Road Area Prioritizationand Feeder Road Pre-Selection
A. Introduction
1. The poor conditionof most feeder roads in Ghana has been identified as one of the key reasons for the current low level of agriculturalproduction. The proposed 4-year NFRRMP will improve the conditionof feeder roads from the current level of 16% "good" to an estimated level of 30% "good" by 1996.
2. To achieve the foregoingobjective, the project is expectedto focus on high and medium agriculturalpotential areas in support of the MTADS. The planningsystem which was developedfor feeder roads includes:
(a) prioritizationof road areas;
(b) pre-selectionof feeder roads on a corridor basis based on agreed socio- economiccriteria;
(c) socio-economicevaluation of feeder road rehabilitation;and
(d) engineeringdesign and preparation of bidding documents for feeder road investment.
B. Road Area Prioritization
3. As a result of the limitedfinancial resources availablefor feeder roads in Ghana, prioritizing the road areas is a way of ensuringthat maximumreturns will be obtained from the investment. All thirty-two(32) road areas (which include 110 administrative districts) were prioritized using criteria developedjointly by the MTADSteam of the MA and the DFR. Criteria consideredin the prioritizationof road areas includedthe following (on a road area basis):
(a) agriculturalproduction;
(b) average transport cost;
(c) populationdensity; and
(d) accessibility.
4. Each road area's agriculturalproduction is the sum of the value of all agricultural commoditiesproduced within the road area using road area production figures and - 57 - Annex 3-6 Page 2 of 5
prices for major crops made availableby the MA. Transport cost is the average cost of hauling agriculturalfreight over a unit distance within each road area using data from the Marketing and Credit Divisionof the MA. Populationdensity was calculatedusing road area level census data, and accessibilitywas also calculatedwith data on road lengths by road areas made availablefrom the DFR PlanningUnit.
5. Data collectedon these variables for all the 32 road areas were analyzed. Priorities were developedbased on a system of weights and scores. These weights were establishedconsidering the objectivesof the MTADS and the NFRRMP following a number of consultationsof the joint MA and the DFR team. The followingweights were agreed upon:
(a) agriculturalproduction 40%
(b) transport cost; 30%
(c) populationdensity 20%
(d) accessibility 10%
6. The agreed weights were combinedinto a linear function from which an index or compositescore (Fi) was derived and used to rank the road areas. The model used in ranking the road areas is defined as follows:
Fi = 0.4Gi + 0.3Ti + 0.2Pi + O.lAi
where the road area parameters are:
Gi = AgriculturalProduction Ti = Average Transport Cost Pi = PopulationDensity Ai = i/2(Ri + Ei) = Accessibility
and Ri = Road Area Road Density, i.e:
= Kilometersof Feeder Roads in Road Area Area of Road Area in sq km
and Ei = Extent of MaintenanceActivity, i.e:
= Length of Feeder Roads Graded or Maintained Total Road Area Network (in km)
Subjectto : 100 > Gi, Ti, Pi, Ai > 0 - 58 - Annex 36 Page 3 of 5
7. The following list contains the prioritizationof the 32 road areas in Ghana:
Priority Listingof Road Areas
Road Area Priority
Techiman * High Cape Coast * High Sunyani * High Mampong * High Sefwi Wiawso High Bekwai * High Yendi * Medium Kumasi * Medium Ada * Medium Hohoe * Medium Dunkwa * Medium Wa * Medium Akim Oda * Medium Tamale * Medium Takoradi * Medium Nkawkaw Medium Keta * Medium Bolgatanga Medium Somanya Medium Tumu * Medium Gambaga Medium Lawra Low Berekum Low Tarkwa Low Winneba Low Ho Low Bawku Low Sawla Low Nsawam Low Axim Low Accra Tema Low Koforidua Low
Note: * SelectedRoad Areas for NFRRMP (see also Map) - 59 - Annex 3 Page 4 of 5
C. Pre-Selectionof Feeder Roads for Investment
8. Following the road area prioritization, a pre-selectionof feeder roads in high and medium potential road areas was prepared with socio-economicdata that were available at the road area and settlementlevel for each feeder road corridor. These data include the following:
(a) populationof settlementsalong feeder road corridors which were obtained from census data of Ghana;
(b) length and conditionof the feeder roads from DFR road registers;
(c) social services (health and education)along feeder road corridors, which is also availablefrom the census data; and
(d) cost of improvingor rehabilitatingfeeder roads to various levels of accessibility,which was obtainedfrom DFR's quantity surveying section.
9. The above data were assembledfor all feeder road links within the selected road areas and used for pre-screeningwith the aid of a computer.
10. The pre-selectionof feeder roads for investmentinvolved three distinct phases. Eir, roads within 3 kilometersof protected areas were excluded. Second, the data for each feeder road corridor were assembled into three factors, namely:
(a) populationdensity; (b) linkageto social services; and (c) conditionof road which is closely related to cost of improvingfeeder roads to required levels.
Each of the three variables was normalized and assigned a weight, giving priority to the benefits but also weighingthe costs to consider roads with bridges or large earth works. _hir, the pre-selectiondone at DFR Head Office was passed on to the District Secretaries and DFR regional engineers for commentsand correction.
11. The system of weighing and scoring emphasizesthe importanceof population (50 percent), social services (30 percent) and road conditionor cost (20 percent). This procedure was used in pre-screeningall feeder roads for investmentunder the project. In addition, roads considered to be redundant from a networkpoint of view or those already included in other developmentprojects or those in a maintainablecondition were deleted.
12. The tentativelist of pre-selectedroads compiledfor each district together with commentsfrom various District Secretariesand their respective Assembliesas well as commentsfrom DFR regional engineers were considered in establishinga final list of pre- selected roads. - 60 - Annex 3-6 Page 5 of S
13. The pre-selected roads were subjectedto detailed cost and benefit analysisto establisha final priority ranking for investment. This process of pre-selecting roads for investmentensures that local priorities are considered together with socio-economicfactors.
AF41N November1991
(A=Prio.NFR) 61 - Annex 3-7 Page 1 of 4
REPUBUCOP GHANA AUG. 1991 NATIONALPEEDER ROADS REHABILITAIION AND MAINTENANCEPROJECT
REHABLITATIONOF I KM FEEDERROAD (ROADWIDTH c 7.32m)
__~~~~~~~ ._ .... . _...... _...... UNIT Capital-lnteasive Labour-lItenive Item Decription QTY UNIT RATE TOTAL in % in % Ial Foreign Local Poreign ...... A. Ckl existingroadof - -Cedis----- Sevannshbush 0.80 Ha 395,122 316,097.60 46 54 98 2
B. Clear carriagewayof gras. bush 0.40 Ha 301,000 120,400.00 46 54 98 2
C. Cear out and deepen existing side(eaath dmi) 700 m 148 103,600.00 44 56 98 2
D. Excavate V' hapeddrinage ditches 400 m3 633 253,200.00 45 55 98 2
E. Scadfy exisng gavel uface of wad, she to crossfalleaN compact 7,320 m2 76 556,320.00 44 56 85 15
F. Excavatesub-grade materia f.m boow pit, ha not exceeding1km, plae and compactin low-lyingareas. 500 m3 1.935 967,500.00 45 55 80 20
0. Excavatesbgrade mata in open cut, push, place ad compact 200 m3 802 160,400.00 45 55 85 15
H. Excava unsuitable(wampy) mterl and dipoe 100 m3 812 81,200.00 45 55 97 3
1. Excavatefrom approved pit, gmvel sub-bwe mteri 100mmthick, bhul not exceeding kba,place and compact 7,320 m2 210 1.537,200.00 44 56 55 45
J. Extm for haulage of gave sub-bas in excs of Ikm (3km) 2,635 m3/hn 130 341,232.50 44 56 44 56
K. Providematerias nd cosuct scour chlcs as per drawn 8 No. 3,000 24,000.00 98 2 98 2
L ConstructSigle 900mm diatr precs conrete pipe culveat.inchding excamto andbacfing, formwork andconret dwjemlooenpbco (ProvIio I No. 795000 795,000.00 96 4 98 2
Tola wihout Contencis in Cedia 5,256,150.10 53 47 77 23 in USS 14,016.40 7,366 6.650 10,767 3,249 = =man= s=mfm . MM===.. ==sue - 62 - Annex 3-7 Page 2 of 4
REPUBUCOF GHANA AUG. 1991 NATIONALFEEDER ROADS REHABIUTATION AND MAINTENANCEPROJECT
REORAVELUNGOF I KM FEEDERROAD (ROADWIDTH = 7.32m)
---- ...... _ ...... _ ...... ___ UNIT Capital-tnaive labour-lntensive Item Dcription QTY UNIT RATE TOTAL in % in % LocAl Foreign Local Foreign
...... _...... ------. _ ------..... _.. ... ------...... _ ...... ---- uedis ----- A. Clar existingroud of neglectedbush 6,000 m2 30 180,000.00 46 54 98 2
B. Cklr cut anddeepen existing aide(eah; dran 1,400 m 148 207,200.00 44 56 98 2
C. Sca* exsting grvel surface of rout, spe to cmbfafls nd compact 7,320 m2 76 556,320.00 44 56 85 is
D. Excavat sub-grademateria firomborrow pits, haul not exceedinglkm, pace nd compact in low-ing area. 100 m3 1,935 193,500.00 45 55 80 20
. Excavte from approved pits, gravel sub-e materil 100mm thick, haul not exceedinglkm, pice and compact 7,320 m2 210 1,537,200.00 44 56 55 45
F. Extra for haulage of gmvel sub-hue in exces of lkm (3Mm) 2,635 m3/km 129.5 341.232.50 44 56 44 56
G. Provide materialsand conatict scour checb as per drwings 8 No. 3,000 24,000.00 98 2 98 2
L Constwt single900mm dineer precast concet pipe culvert, inclding excavationand bwckfilling. fowmwork and concrete munwndcompide (Provialona) 0.75 No. 795.000 596,250.00 96 4 98 2
Tota wiout Contingencies in Cedis 3,635,702.50 53 47 72 28
in USS 9,695.21 5,142 4,553 6,962 2.734 ====an= n== ===G= no== ==mm= - S3 - Annex 3-7 Page 3 of 4
REPUBIICOF GHANA AUG. 1991 NAThoNALFEEDER ROADS REHABIUTATION AND MAINTENANCEPROJECT
SPOTIMPROVEMENT & RESHAPINGOF I KM FEEDERROAD (ROADWIDTh - 7.32m)
UNIT CapitalI-n ive labour-rnmive Itcm Dc-Tion QTY UNIT RATE TOTAL In % in % Locl Feo } cal Pp ---- Cedis---- A. Clear exng roodof neglectedbusb 6,000 m2 30 180,000.00 46 54 98 2
B. Cla out and deepen exitin side (caith) dnlm 1,400 mo 148 207,200.00 44 56 98 2
C. BIede.gavel uafe to croa falle and compact 5,850 m2 33 193.050.00 44 56 85 15
D. Scailfy exit gavel swface of rood, &hopeto croflls ed cmpact 1.500 m2 76 114.000.00 44 56 85 15
E. Excaat ub-gade materl from borrowpit, haul not exceding 1km ple and compat in low-ling ares. 100 m3 1,93S 193.500.00 44 56 55 45
F. Providematerials and coneuct acourchec amperdmwiAp 8 No. 3.000 24,000.00 98 2 98 2
Total wltouCondtgence inCediC 911,750.00 46 54 84 16
in US$ 2,431.33 1,114 1.317 2.054 377 "asta=ct =-M Ws=Mu m=== mm=== - 64 - Annex 3-7 Page 4 of 4
REPUBUCOF GHANA AUG. 1991 NATIONALFEEDER ROADS REHABIUTATION AND MAINTENANCEPROJECT
CONSTRUCTIONOF I NO. SINGLEDIAMTER 900 mm PIPE CULVERT (7.32 m)
UNIT Capital-latensive Labour-Inteive Item Description QTY UNIT RATE TOTAL in * WX Local Foreign Local Forein ---- Cedis---- A. Trencb excavation 12 m3 1,600 19,200.00 95 5 98 2
B. 50mm thick coret blinding 10 m2 1,615 16,150.00 94 6 98 2
C. Provide lay mdjoint 900mm dameter P.C. pipes 8 m 38,500 308,000.00 95 5 95 5
D. Concete (1:3:6-38mmagg.) in bed ad surronmdaincluding fomnworkcomplete 8 m3 34,200 273,600.00 94 6 98 2
a Concrte (1:2:4-20mmsgg.) in wmngwallheadwalH and aprns 2 m3 39,000 78,000.00 94 6 98 2
F. Sawn founworkto vetticalsides ofwall$ 18 m2 1.020 18,360.00 98 2 98 2
0. Excate trzoidal dains by bml 60 m3 750 45,000.00 98 2 98 2
H. FMlltoculvertapproaches 320 m3 1.935 619,200.00 45 55 65 35
1. Extm for haulageof fll ,0-20 kn) 640 m3/km 129.5 82,880.00 44 5 44 56
L. Exta for baulge of aggregat and and (20-100kmn) 350 m31km 112 39,200.00 44 56 44 56
Total withu Contigencies in Cedi 1,499,590.00 70 30 79 21
in USS 3,N08.91 2,803 1,196 3,174 825 =-w1t5G ===, - _.-= ==E,, _,,,_ - 65 -
Annex 3-8 Page 1 of 4
REPUBLIC OF GHANA
NATIONAL FEEDER ROADSREHABILITATION AND MAINTENANCE PROJECT
Status of Domestic Construction Industry
A. Classificationof Domestic Contractors
1. The list of registered A, B, and C class domesticcontractors as of August 1991, includingthe value of contractsthey are registered for, is as follows:
No. of Value of Type of Class Contractors Contracts Work Al 4 no-limit Equipment- A2 10 C800m based A3 71 C400m Road Maintenance A4 61 C150m and Rehabilitation Total "A" Class- 146 BI 5 no-limit Bridges B2 15 c300m and B3 104 C150m Culverts B4 186 c 60m Total "B" Class - 310 C 47 C125m Labor-based Road Rehab. Total "A","B" & "C" - Q
2. Class "A" contractorsare registeredfor roads, airports and related structures; class "B" contractorsfor bridges, culverts, and other structures; and class "C" contractors for labor-intensiveroad and culvert works. Class "A" contractors are most essentialfor the road sub-sector. However, it would not be justified to assume that the road sub-sector would provide continuouswork for all the 146 registeredclass "A" contractors. It is therefore necessary that future efforts to develop local constructioncapacity should focus on a realistic assessmentof demandedcapacity based on a number of good performing class "A" contractorsrather than the present large number of 146 contractors. The screening of good performing contractors could be done through a detailed assessmentof individual contractors evaluatingtheir problems and constraints. 3. Class "C" contractors were recently developedby DFR for low volume, low cost feeder roads; for sections of roads where road site materials are suitable for formation constructionand rehabilitation;and where surfacing materials can be obtained within a short haulage distance. Presently, these contractorsare not expectedto carry out structural works - 66 - Annex3-8 Page 2 of 4 except small culverts. They are appropriate for small and scattered works which would not attract the class "A" contractors.
B. Road Sub-SectorStabilization Program 4. Ghana has 14,400 km of trunk roads and 21,300 km of feeder roads. About 6,000 km of trunk roads are bitumen-surfacedand the remaining 8,400 km are laterite gravel- surfaced roads. Out of the 21,300 km of feeder roads, only 3,600 km are in a maintainable condition. 5. In support of the country's ERP, GHA which is responsiblefor trunk roads, developeda road network stabilizationprogram in 1987 with a target of improvingthe condition of the trunk roads to 69% good, 21% fair and 10% poor by 1997. GHA is making all efforts to meet the stabilizationprogram objective. In 1991 the conditionmix was about 29% good comparedto 229%in 1987; 32% fair comparedto 42% in 1987; and 39% poor comparedto 36% in 1987. From 1987 to 1991, the percentageof good conditionroads has increasedby 7% and the percentageof fair conditionroads reduced by 10%, while the poor conditionroads have increasedby 3%. Overall this shows a slippage in the stabilization program. 6. The increase of roads in poor conditionenta,ls higher investmentcost to meet the road network stabilizationprogram. GHA plans to revise the stabilizationprogram in 1992 to reflect realistic physical targets and financial requirementsin meetingthe road conditionmix planned to be achieved by 1997. However, because of the magnitudeof the required effort, the program period might have to be extendedto 1998/99. 7. In 1981, when DFR was established,almost all of the 21,300 km of feeder roads were in poor to very poor condition. From 1983-1991,DFR has rehabilitatedabout 3,600 km which are now in an all season motorable condition. Assisted by the World Bank and other donor agencies, DFR has developedthe NFRRMPwhich aims at rehabilitationof 8,400 km of feeder roads by 1999, bringing the total motorablefeeder road network to 12,000km. 8. The magnitudeof the above trunk and feeder road programs, plus the urban road rehabilitation/improvementprogram under urban projects requires large constructioncapacity. A large portion of the rehabilitationand maintenanceprogram requires a well developedlocal constructionindustry capacity because of the type of work, the geographicallyscattered nature of the works and the lower standards required on feeder roads which are less attractive to internationalcontractors. 9. GHA, DFR and DUR have adopted the strategy of contracting out almost all rehabilitation,improvement and periodic maintenanceworks and a good portion of routine and recurrent maintenanceoperations. By doing so they have maintainedforce account operations at a small scale and limit them to activitieswhich are not easily adaptableto contracting. 10. The move from force account to contractingof road works necessitatedthe developmentof the local constructionindustry. Under the Road Rehabilitationand MaintenanceProject (RRMP 1985-1991),GOG started to provide foreign exchangeloans to 45 contractorson an on-lendingbasis for purchase of equipmentand spare parts. DFR, supportedby donor agencies such as IDA, UNDP and ILO, has trained 27 labor-based contractorswho were provided with foreign exchangeloans for purchase of light equipment and tools. - 67 - Annex 3-8 Page 3 of 4
C. Past Performanceand Problem Areas 11. Over the past five years the "A" and "B" class contractorshave participated in GHA, DFR and DUR road contract works up to about 40% of all contract values and about 60% of the km-lengthof road works carried out by contract. Single-mancontractors (SMC) are carrying out over 50% of the routine road maintenanceworks. The 'A" and "B" class contractors are starting to play a significantrole in the overall economicdevelopment of the country and GOG's efforts in developinglocal constructionindustry capacityhas started to pay off. 12. About forty contractorsare presently participatingin resealing and regravelling contractsunder the IDA financedTRP-1 (1988-1992). They bave completed works or 1,620 km of trunk roads. Contractorquality of regravellingwork has been satisfactoryever though there was a need for more than normal supervisionand quality control. However, on resealing works, almost all contractorshave found it difficult to meet the required quality standards. Assessmentof the production capacity of the contractors, in 1991 reveals that works were completed on average at twice the period specified in the original contracts. 13. The contractors' problems both in quality and time of completionof contracts can be grouped into the following nine problem areas: (a) insufficientplanning and programmingcapacity for contract work from mobilizationto executionof works, mainly due to lack of experience and educationallevel of company managers; (b) failure to recognizethe advantageof employingcapable and experienced project managers and key field supervisory staff; (c) failure to recognize the advantageof paying sufficient incentivesto work crews based on production; (d) poor logisticalsupport for materials, supplies, spare parts and maintenance and repair of equipment; (e) low priced bids which resulted in shortage of operatingfunds and inabilityto complete road works; (f) governmentdelay in paymentduring certain periods of the year; (g) shortage of foreign exchangefor purchase of additional equipmentand spare parts; (h) high financial risks in paying back loans due to extreme devaluationsof the cedi and very high loan interest rates; and (i) unfavorablecommercial lending practices by BHC.
14. In the past two to three years the local constructionindustry capacity has been on the decline such that, unless provisions are made to support the industry in areas of identified problems and constraints listed above, implementationof road work programs could be adversely affected. It is therefore essentialfor the Governmentto undertake a careful assessmentof the industry and based on findings to develop a strategy and a plan of action to develop the capacity of the required number of good performing contractors. The project - 68 -
Annex 3-8 Page 4 of 4 provides 18 /rn consultantservices for a local constructionindustry assessmentand developmentstudy. TOR for such services are provided in Annex 4-8.
AF4IN November 1991 (Conlndus.NFR) - 6s - Annex 3-9 Page 1 of 1
REPUBLIC OF GHANA NATIONAL FEEDER ROADS REHABILITATION AND MAINTENANCE PROJECT DFR Road Work Accomplishments 1983 - 1990 Rehabilitation by Region Region Road Area Total Feeder (to end 90) (km Road Network (in km) Labor Equipment Based Based Greater Accra Accra/Tema 482 Ada 335 817 100 Volta Ho 455 Hohoe 1,099 Keta 794 2,348 142 Eastern Koforidua 388 Naawam 247 Oda 495 Somanya 190 Nkawkaw 995 2,315 14 214 Central Cape Coast 880 Winneba 805 Dunkwa 296 1,981 82 Western Takoradi 581 Tarkwa 1,006 Sefwi Wiaswo 631 Axim 121 2,339 282 478 Ashanti Kumasi 1,534 Bekwai 955 Mampong 839 3,328 61 168 Brong-Ahafo Sunyani 1,102 Berekum 887 Techiman 1,368 3,357 53 462 Northern Tamale 943 Gambaga 521 Yendi 627 Sawia 290 2,381 330 Upper East Bolgatanga 639 Bawku 313 952 64 Upper West Wa 677 Lawra 496 Tumu 275 1,448 260 Totals 21,266 410 2,300
WORKS DONE BY OPERATION BETWEEN 1983 AND 1990 ------YEAR REHAB. REGRAVELING RESHAPING CULVERTS kcm km km No. 1983 100 30 1,920 39 1984 150 55 1,520 37 1985 65 0 245 3 1986 130 320 750 62 1987 305 590 590 224 1988 450 630 1,095 480 1989 505 260 180 276 1990 1,005 425 770 292 2,710 2,310 7,070 1,413 N REPUBLIC OF GHANA NATIONAL FEEDER ROADS REHABILITATION AND MAINTENANCE PROJECT
CAPITAL EXPENDITURES AND SOURCES (Cedis Million) 1983 - 1991 CENTRAL ROAD COCOA IDA USAID IDA CEDIS EXCHANGE YEAR BUDGET FUND USS FUND IFAD PAMSCAD APPP CRP/TRP MILLION RATE MILLION 1983 526 ------526 90 5.84 1984 738 ------738 1985 - 90 8.20 - 30 - - - - 30 1986 512 207 112 90 0.30 - - - - 831 140 5.94 1987 400 322 677 - - - 1988 - 1,399 190 7.36 660 380 2,400 - - - - 3,440 1989 230 230 14.96 915 1,758 288 77 139 356 3,763 300 1990 564 817 12.54 2,495 700 432 1,200 575 6,783 350 19.38 (est.) 1991 450 1,275 2,500 500 300 1,200 1,310 7,535 375 20.10 1 Notes:
1. The above table contains capital expenditures and sources of funding for feeder roads only; cocoa roads form part of the feeder road network;
2. Central Budget and Road Fund are Government funding sources. The Cocoa Fund comes under the Ghana Cocoa Board (CocoBod);
3. Numbers for 1991 are estimates.
(D n m x
o w
-o - 71 -
ANNEX3-11 Page 1 of 1 REPUBLICOF GHANA NATIONALFEEDER ROADS REHABILITATION AND MAINTENANCEPROJECT FEEDERROAD NETWORKEXPANSION 1992-1999 (in KN)
...... Description C A L E N D A R Y E A R S - In km - 1992 1993 1994 1995 1996 1997 1998 1999 ...... 1. FeederRoads Fully Rehabilitated underMaintenance 3,600 4,800 6,000 7,200 8,400 9,600 10,800 12.000 ......
11. FeederRoads to be Regravelted 450 600 800 1,000 1,200 1,400 1.600 1.800 ......
1. FeederRoad Rehabilitationunder:
(i) PAMSCAD 150 100 (Cf) COCOA RoadRehabilitation
a) IDA & COCOA FUND 400 400 200
b) ADF & COCOAFUND 450 400 200 -
Clii)NFRRNP-1 (IDA/USAID/DANIDA/GOG) 200 300 800 1.200
CIv) NFRRNP-2(tentative) I - 1,200 1,200 1,200 SUBTOTALFULL REHABILITATION 1,200 1.200 1,200 1,200 1.200 1,200 1,200 (v) Spot Improvementsuider NFRRMP 180 180 180 180 260 260 260 TOTALU0RKS 1,380 1,380 1,380 1,380 1.460 1,460 1,460 ......
Rehabilitation Works: Labour-BasedLCB: 1,000 km x 10,000/km * US$ 10.0 N. CapitaL-Based LCB: 400 km x 18,000/km a USS 7.2 N. Capital-BasedICS: 1,100 km x 23,000/km- US# 25.3N. 2,500km costing US$ 42.5N. in Termsof Base Cost
US$ 42.5 M/2,500km * US$ 17,000/kmin Term of Base Cost mEiiIZK Ol' GIANA
1adaul f.st R3b 3mW .ad Ml to"es
a,n Wab Cad R Teadl Pnmm t992 - 1999
TOTAL YEAR I MY 199WUNEIM9 YEAR 2.*JULY 199MUNE 1994 YEAR 3: JULY 199UE 1995
C05314ENT LOC TAXES FORBO TOTAL LUCAL TAXES FORM TOTAL LOCAL TAXES FOREDO TOTAL LOCAL TAXES OREIG TOTAL
NATONALFEEDERU3AIO S DEVE Or PROGRAM(99199) OWa O*b - AD flChcedJ
I.M ilebmi et_om ILCvkd4mm"Cfe0.o3br 49.79 7.5L 51W7 108.23 7.11 1 m 7.27 Ism 7.11 128 7.27 35.46 7.11 1 A 7.27 15.46 b L.h.C amm0a(32113h1 2353 235 7.73 33.61 J3.6 034 1.10 4.0 3.36 034 1.10 4. 3.36 0.34 1.10 4 3 9Aht1PO RdaMhusk.byCodst 73.31 9.93 58.0 141.84 10.47 1.42 8.37 21.26 10.47 3.42 8.37 2026 10.47 1.42 337 2026
2. hdGaic Mah8mm b Cmab a. Rgsot rc ,uwPeW5 28.53 434 29.15 622 13.2 0.28 3.6 3.96 2.n 0.37 2.47 5.27 3.25 0.49 3.32 7.06 hdaimamby*sdau 28.53 4.34 29.135 62.02 .82 0.28 2.86 3.96 2.42 0.37 2.47 5.27 3.25 0.49 3.32 7.06
3. SPe viau-dum by C- a. spo,mAC4v. CciwO.380h)w 7.47 0.n3 2.18 10.38 0.9 0.09 0.26 1.24 0.89 OD9 0.26 1.24 0.89 09 0.26 124 Sbcb3Spot kpM2.4vs.byCAWg 7.4 0.73 2.18 1038 0.89 em9 0.26 14 0.89 009 0.26 1.24 989 0.09 0 1.24
4. RualbMecmy Cat a.uGIDs.hCaah l.17 025 0.18 3.3 0.21 om 0.l 024 0.29 0.02 0.02 0.33 037 om 0.02 0.42 b. Chwhe 2.27 0.28 0.13 2.5S 0.15 001 0.03 0.17 0.21 002 0.03 0.24 0.27 0.02 0C2 0.30 c. a t 2.27 0.38 0.13 258 0.15 0.03 0.01 0.17 0.21 02 03 0.24 0.27 002 0.02 0.30 Felsomt. ?udf 3.23 0.26 0.18 3.67 0.22 0.02 O0] 0.25 0.30 0.02 002 0.34 0.38 om om2 0.3 b cby 10.94 0.87 0.62 12.43 0.74 0.06 0.04 0.84 3.0 0.08 0.0 1.15 2.23 0.10 00 1.45
S. Rea M by C.waJ AcoJt a. 3R byCeeuct 3.84 0.69 5.32 9.85 027 005 038 0.70 0.37 0.07 0.5 0.94 0.46 Om 0.63 1.17 b. 3 ly9moA= 3.9 0.4 4.97 9.21 0.13 002 0.28 0.33 0.26 0AS 0.36 0.6 0.3 em 053 0.99 S _ b _ ebCm 7.43 1.33 0.29 19. 0.40 0.07 0.56 3.03 0.62 0.11 0o6 I02 0.84 0.15 1.17 2.16
BASENATIONAL FEEDE ROADSDEVELOP8'ENT FROG.OSTF 1279 17.20 3IOC.Z 245.74 14.33 1.91 11.10 27.34 35.42 2.07 12.03 29.51 16.74 2.5 13.19 32.18 m3HSIALCO aThIGENE 12.77 .72 30.08 04.57 1.43 0.39 1.11 2.73 1.54 0.22 1.0 2.95 1.67 0J3 1.32 3.22 W2RI CONT608IElES 21.49 2.90 16.29 4161 1.13 0.15 0.37 1.5 157 021 05 2.3 2.20 0.30 2C9 358 TOTALNATIAL FEE3a ROADSDEVELOPM824 WO. LME 161.95 21.82 127.22 310.99 16.90 2.26 12.57 31.73 I53 2.48 13.82 34.83 2D.61 2.77 15.3D 38.98
>'3 ID XD
01 REPURMOPOHNA
TEdP"amm 1992 -1999
YEAR4 JULY 1993-jUNE 1996 YEAR5: JIULY 1996iE 1997 YEAR JtJLY 19974UNE199 YEAR?7 JULY 199JUNE 399
a)8N80ENT LOCAL TAXES FORO TOTAL LOC TAXES FOREIO TOTAL LOCAL TAXES FORMG TOTAL LAL TAXES FORM TOTAL
NATIONALFEEDE ROADS EVELPM1 3'ROG39919991 03lwa9WbO - A1IC.mD
3. FkdRcbB =byOCom a. CipCb0-OUbe3 tl7.13 I357 27. 5.46 7tl 157 727 15.46 7.11 LOS 727 I5.45 7.11 3.x 727 15.46 b, Lab _&mmftC _lZmO,3W kW 336 0.34 3.30 4.80 336 034 1.10 4.80 336 034 1.10 4.90 336 0.34 1.10 4.80 SwFd13 cbMud3 tyCatag 10.47 1.0 837 2D.26 10.47 1.42 837 2026 10A7 1.42 837 2316 30.47 1.42 L37 2026
L. I Mdft by Cwlxm .8w_Concea o850ba 4<5 0DA2 4.13 B.D 4.85 074 4.96 10.54 5.67 0.86 s.79 32.33 6.47 0.9 6.61 34.06 SIdlEd a _u.w bycc 4as 0.2a 4.33 8D 4.85 0.74 4.96 3034 3S7 086 5.79 12.33 6.47 0.3 6.61 14.06
3. Si bq--u-0DwA-by Cr 4S.sp.o d,tD - D.cO3 mbn 0m2 01 02 1.27 129 0.33 03s 1.79 1.29 0.13 033 1.79 329 0.1u 038 1.79 fd SpoAt hoo 2 .by C- 0.92 O09 0.27 127 129 0.13 033 1.79 1.29 0.33 033 1.79 t2s 0.13 038 3.79
4. R Ma bmtby Cmua . G=w.imbCwb 0.45 0.04 0m 0.53 0.53 0.4 o0m3 o.AD o03 O.S 0.03 0.3 0.70 o6 0.04 0.79 b. M bC s 0.32 0.03 0m02 0.37 038 o03 002 0.43 0.44 0.04 o03 0t Om 0.04 0 0.57 .C rd __ 032 0.0 0.02 0.37 038 0.03 o0m 0.43 0.44 0.04 om 050 o05 0.04 om 037 d .PwP abtmd 0.46 044 0m 0.2m 0.54 004 0G 0.42 0.6 0.A O4 071 0.71 0G36 0414 oil StbowlRattim naW3ieby C _at 1.55 0.12 009 1.76 1.3 0.15 0.30 2. 21.2 0.17 0.12 2.43 2.41 0.19 0.14 2.73
S. Rbn MMbyCw&JFm AroMa a. 3z bycmm 0.55 0.30 0.76 3.43 0.64 .33 0.89 13.64 0.73 0.13 131 3. 0.82 0.15 1.14 2.11 b. bdap&sby Fam Arom 0.51 0Si 0.73 1.32 0.4 0.32 0.89 3.64 0.77 0.34 107 3.97 0.99 0.16 1.24 230 Sa3 RwmUW MAWwn by CoSiJFPA 1.s 0.39 1.47 2.72 1.28 023 1.77 3.29 As 027 2.0 385 1.72 031 2.38 4.41
BASENATIONAL FEERDROADSDEVELOPM4ENT PROO. COST l2.5 2.44 14.33 34M2 19.73 266 i58 37.97 216 2.5 16.74 40.64 236 3.m3 17B8 43.27 sIIYUCALCNTINOENCIES I3. 0.24 1.43 3.48 1.97 0.27 1356 3410 2.11 03 3.67 446 224 0.3 1.79 4.33 PR3 CONr)NGNlCIES 2.93 0.40 1.93 536 3.56 0.48 2.97 701 4.52 0.63 4A4 9.16 .59 0.76 530 31.6 TOTAL NATIONAL FE RROADS DiEVELOPMENT ROO.cxir 22.38 318 17.70 43.56 2526 3.40 2D.12 48.78 27.8 3.74 22.45 53.J7 30.19 413 24.96 5924
G 34 oQl
0I OyUW~ Pau 3911Z-359
IOCAL TAXES FOM TOAL UXD3A1CNG
IDA 0O0 ASSUMED MATmNAL FEE ROADSECVEmLOIwr PROGRAM(2199! (USMMOW) Ft NFRi414 3.F. 000 UtSD DNIDA OPEC AIDF IDA GO0 IDA SOI3lE FtNt3 XMWabOb - A UDCr Neab 1&2* &C.S. 3.3 ClP CS. PANSA FUNDG GO 1. 3S V_wby_ &.C _ Ob0I, 62.72 9. 43.4 135.70 69.4< 5s4 o0m0 0n 0n s5 6Oil 12.35 3.9 4.V3 117.0 IBM 3. ldat.Cw_ O,343bu) 21.64 2.9f 9.449.64 42h42.2 0D00404 sm Om I=2.00 32.lie om0 3.30 65641.43 0 O0 MaalFi3l&ubC_tt 92.36 32.51 7343 177.94 W. MAC 04 1243 12.4 sim 304 1943 Go 4.74 1S9 39.24 2. ~uhmcmtgcamlm a.v g 3t G (333Wa 3647 5.56 3733 79.51 D3M 253 0om 9.D 6.60 S.0 om o0m om 0om O9m 10.51 t eMaaCsh 36.57 5.56 3733 79.53 23.X 7543 o0m 9.0 6.40 5so O0 on o0 o0. am t051 3.S1j0&wwwAmd.um yC- g ILuS W Cuomo (3.)kw 9.4 0.92 .75 13.15 0o o0m 043 12.0 c0 04.3 om3 om0om 122D3.95" _ Spot* _tM-* byC- 9.40 0.92 2.75 13.15 0we 0om o0 312.3 043 o0 o om om Gm 12.3 0.95
4. 3 t a _by ILa. 4 0.32 0.3 4.91 oiw 0.00 4. 04D o0m o04 Om o04 Om om 4.0 o m b. D (e_, 2.91 0.3 0.17 330 0em o0m 3.m0 04 043 043 CAD 043 043 om 330 o043 C. (3n C 2.91 0.23 6.17 330 o00 043 330 043 043 omD o04 043 043 O0 3.3 043 4. VgibSpd I 4.13 0.33 0.3 4.3e 43 0om 443 o04 o0m o04 043 o04 o0m om0.64 o.4 -tW R M by Cat 1440 1.11 053 3U.91 4A o0D 15S39 o04 o0m 043 o04 o0 O 043 om 153.9 o0m 5. _a,M tdmav wcJFmm Ao . bb A 4.91 Om 640 12.9 om o04 12.51 o04 om O04 om om o04 043 12.51 om b Fy hmAc 443 03 6.43 1139 0m o0 313 o0m o04 o0 om o00 o04 043 1338 o0 dRm1 Mat,%bt3 CJFPA 954 3.73 1332 24.47 040 00 2432 043 0m o04 o04 04 0o4 o 2432 0.15
TOTALtATEDNAL FlEE ROAMSDEVELO3I FRO0. COST I4.95 23J2 127.32 310.99 92. 4543 4021 33A4 94m 3om l0m3 1943 6m 4.90 DiL 3.0 Notes: 1. IDA NFRRMP 162: First and Second National Feeder Roads Rehabilitationand MaintenanceProjects 2. COG R.F.& C.B.: Governmentof Ghana Road Fund and Capital Budget; 3. COG R.B.: Government of Ghana Recurrent Budget; 4. GOG C.F.: Government of Ghana Cocoa Fund; 5. Assumed Secured Funding: It has been assumed that IDA, USAID, DANIDA and OPEC would contribute the same amounts w a for civil works under the second feeder roads project as under the first one. GOG R.F.and C.B. has been decreasedwhile GOG R.B. would cover all routine and recurrentmaintenance costs. o 1 Funds under ADF, IDA, CRP and GOG C.F. only contributeto the ongoing Cocoa Rehabilitation Project. - 75 - Annex 4-1 Page 1 of 2 REPUBLICOF GHANA
NATIONALFEEDER ROADS REHABILITATIONAND MAINTENANCEPROJECT
DFR EquipmentStatus
1. DFR's strategy for executionof road works is to continueusing contractorsfor rehabilitation,periodic maintenanceand portion of the routine maintenanceoperations. However, there will be need for DFR to continueusing force account units to a limited extent for pothole filling, spot patching, and recurrent road surface blading. DFR has established Spot Improvementand Maintenance(SIAM) and Mobile Repair and Maintenance (MOREMAT)units to carry O"f force accountoperations. The MOREMATunits are engaged in emergencyrepair and heavy blading works to restore priority access roads for which the communitiesprovide fuel and accommodationfor the grader and truck operators. Communitieshave been encouragedto contributelabor and fuel for the SIAM and MOREMATunits to repair access roads of communitypriorities. DFR will continueto use these units both for recurrent maintenanceoperations and communitypriority road repair works.
2. The followingtable provides DFR's equipmentrequirements, existing, to be replaced and those to be purchased under NFRRMP. The list was assembledon the basis of a preliminary maintenanceperformance and budgetingsystem (MPBS)developed during the project pre-appraisal. It will be refined based on the detailed MPBS which will be developed by consultantsfinanced under NFRRMP. DFR's force account operation involvementwill be periodicallyreviewed depending on experience of maintenanceby contract and extent the equipment is being utilized by the community.
3. At present DFR is establishingthree regional workshops and, it has started recruitmentand training of mechanicsto operate the workshops assisted by an expatriate mechanicalspecialist financed under the PPF provided for NFRRMP. Two mechanical specialistswill continuetheir services for 24 months and will assist DFR in establishing additionalworkshops in other regions. To ensure adequateprovision for the maintenanceand repair of the force account equipmentfleet, the project provides funds for workshop equipmentand tools and spare parts (see followingtable). - 76 - Annex 4-1 Page 2 of 2
REPUBLIC OF GHANA
NATIONAL FEEDER ROADS REHABILITATION AND MAINTENANCE PROJECT
Feeder Road Maintenance and Workshop Equipment. Tools and Spare Parts
To Be Balance Require- Estimated Item description Requirement Existing Replaced Existing ment cost ______NFRRMP US$ '000 1. Dozer 5 2 1 1 4 240
2. Loader 4 4 1 , 1 70 3. Grader 32 84 12 -(40) 0 0 4. Roller 1S 14 5 9 6 240 5. Pedestrian Roller 68 43 10 33 20 260 6. Tractor 120 107 37 70 50 262 7. Water Tanker 34 45 0 45 0 0 8. Water Pump 34 32 2 30 2 5 9. LowbedLoader 2 2 1 1 1 90 10. Tipper Truck 55 47 2 45 0 450 11. Motor Cycles 100 58 30 28 72 150 12. Four Wheel Drive 21 23 13 10 11 240 Vehicle 13.Pick up 6(0 71 31 40 20 320 14. Sedan 10 8 4 4 6 90 15. Mobile Radios 47 11 0 11 36 350 16. Wkshop Equipmt 600 17. Wkshop Tools 50 18. Road Maint., Hand Tools assorted 300 19. Spar Parts 1,000
TOTAL 4,717
AF4IN Novenber 1991
(Eqipmcnt.NFR) - 77 - Annex 4-2 Page 1 of 4
REPUBLIC OF GHANA
NATIONALFEEDER ROADS REHABILITATIONAND MAINTENANCEPROJECT
Organization and Management Study
Terms of Reference
A. Introduction
1. The Departmentof Feeder Roads (DFR) of the Ministryof Roads and Highways (MRH) is responsiblefor the construction,rehabilitation and maintenanceof the country's feeder roads. There are a total of 21,900 km of classifiedfeeder roads in Ghana. Over the last two decades feeder roads have severely deteriorateddue to lack of maintenance, to the extent that most of the roads are inaccessibleeven in dry seasons. Since its establishmentin 1981 DFR has grown steadily, and from 1983 to 1991 it has rehabilitated about 4,000 km of feeder roads. DFR's plan is to rehabilitate an additional 8,000 km from 1992 to 1999 bringing the total rehabilitatedfeeder road network to 12,000 km.
2. The Ghana Highway Authority (GHA) which comes also under MRH is responsiblefor the construction,rehabilitation and maintenanceof the country's trunk roads. There are a total of 14,430 km of trunk roads of which 6,000 are paved and the remaining 8,430 are gravel surfaced. GHA, which was re-organized in 1974 as an authority is institutionallywell establishedand adequately staffed. It has well developed organizationand management,and maintenanceperformance and budgeting systems.
3. DFR which is a comparativelyyoung agency, has its Head Office in Accra and 10 regional and 32 road area offices covering its country-wideresponsibility for the rehabilitationand maintenanceof feeder roads. Establishmentof workshops has started in four regions and the future plan is to establish additional workshops on a need basis. Almost all of the rehabilitationand periodic maintenanceworks are carried out by contract. DFR plans to contract routine maintenanceactivities to single-mancontractors (SMC or length-man system). DFR's institutionalcapacity has developedto the present level without a formal Organizationand Management(O&M) study. The Governmentnow realizes the need for such a study based on DFR's institutionaldevelopment to cope with the fast growing responsibility.
4. Governmenthas applied for IDA assistanceto finance a National Feeder Roads Rehabilitationand MaintenanceProject (NFRRMP) and IDA has provided funds from a Project PreparationFacility (PPF). Part of the funds v l be used for carrying out an O&M study to strengthen the institutionalcapability of DFR. 1L'.se TOR are for the consultant services to carry out this study.
B. Objectives
S. The objectivesof the consultantservices under these TOR are to: - 78 - Annex 4-2 Page 2 of 4
(a) determine the most app.ropriatelegal instrumentto provide DFR with sufficientautonomy for efficient managementand monitoringof its operations;
(b) develop the most appropriate organizationalstructure for both headquarter and field levels for DFR to efficientlymanage and monitor its operations;
(c) determine DFR's work load and level of distributionof civil works between force account and contract to attain a cost effective performance;
(d) develop job classifications,job descriptionsand staffing requirementsfor DFR both at headquartersand field levels taking full accountof its increasing responsibilityin feeder road rehabilitationand maintenance;
(e) develop an appropriate salary scale for each of the job classificationsbased on a salary scale review of similarjobs in public agencies and the private sector; and
(f) determine DFR's staffing requirementsand training needs over the coming five years to match its increasingwork load.
C. Scope of ConsultantServices
6. The consultantshall study DFR's requirementsin organizationalstructure, managementof its operations, level of autonomyand staff training and recommend improvementsfor DFR to operate more efficiently. The consultantshall review all available studies and identifystrength and weaknessesof the present organizationalset up. The consultantshall carry out the study in consultationwith responsibleGovernment officials and senior DFR staff. The consultantshall carry out, inter alia, the following:
(a) review th- existingorganizational structure and the preliminary O&M study carried out in October 1990 and recommendthe most appropriate organizationalstructure for DFR headquarter and field levels;
(b) review DFR's feeder road rehabilitationand maintenancework program for the coming five years and assess availabilityof sufficientprivate sector contracting capacity to carry out the program;
(c) assess and recormmendthe most cost effective distributionof civil works between force account and contract; and distributionof engineeringdesign and contract supervisionservices between departmentalforce and consultant services;
(d) develop job classifications,job descriptionsand staffing requifementsof DFR to effectivelyimplement the program based on work distributiondetermined under (c) above;
(e) review DFR's present functionaland administrativerelationship with MRH and other relevant Governmentagencies including relationship with the 110 - 79 - Annex 4-2 Page 3 of 4
political districts and 10 regional administrationsand recommend improvementsto be made includingautonomy to be provided to DFR and thereby to ensure efficiencyin DFR's performance;
(f) review policies and proceduresDFR is required to follow in procurement; personnel managementincluding hiring, firing and promotion; and utilization of funds and other resources; and based on the results of the assessment, recommendlevel of authority to be provided to DFR in the stated areas to ensure efficiency and cost effective implementationof the program;
(g) determine DFR's staff training requirementsand the interim institutional support requirementsand develop a training program leading to self- sufficiencyof DFR to carry out its responsibilities;
(h) review present salary scales of DFR, other Governmentagencies and the private sector in the fields of DFR staff; assess its impact on performanceand in close consultationwith relevant GovernmentMinistries rezommenda revised salary scale for the differentjob classifications.
7. The consultant,based on his findings will prepare recommendationson the most appropriateorganizational establishment of DFR includingthe option of establishinga semi-autonomousFeeder Road Authority (GFRA) similar to GHA. The consultant shall specify the advantagesof the recommendedorganizational establishment. The consultant's recommendationsshall include DFR's authoritiesin planning and programmingfeeder roads developmentand maintenance; internal administrationof personnel, budget and other resources; and procurementof works, goods and services.
D. Data and Services to be provided by Client
8. DFR will furnish relevant study reports and informationon its present organizationalstructure; salary structure; personnel management;budget processing and procurementpolicy requirements; position classificationand status of staffing; etc. DFR will also make available office space at its headquartersfor consultant'spersonnel. The consultant shall provide his own secretarial services and office supplies. DFR will provide the necessary vehicles. DFR will establish an O&M coordinationand review committeethat will assist the consultantin obtaining relevant informationfrom Governmentagencies and that will periodicallyreview the status of the study as well as assess the approach and practicabilityof the consultant's proposals.
9. The consultantwill review the organizationalstructure of GHA and O&M studies carried out for the establishmentof GHA includingthe proclamationestablishing GHA and assess its advantagesover that of the present DFR establishment.
E. Staffing and Time Schedule
10. It is envisaged that to carry out the above assignment,the consultantwill provide 3 experts who, as a team, should have the followingskills: - 80 - Annex 4-2 Page 4 of 4
(a) a senior public works expert (civil engineer)with considerableexperience in managementof public works agencies includingrelevant experience in Africa;
(b) an organizationand methodsspecialist with similar experience as in (a) above; and
(c) a road constructionand maintenancework programmingand execution specialist, with adequate experiencein road work executionby force account and contract includingsupervision requirement in the two methods of execution of works, in particular road maintenanceby contract.
11. The consultantshall prepare and submit inception and final reports. The report submission, review schedulesand copies to be provided are as follows:
(a) InceptionReport (10 copies): within four weeks of commencementof work in Ghana. In the report, the consultantshould outline his preliminary findings, an outline of the forms of organizationto be studied and proposed approach and schedule for the remainder of his assignment;
(b) Draft Final Report (10 copies): within three months after receiving comments on the InceptionReport;
(c) Final Report (25 copies): within six weeks after submissionof Draft Final Report. Commentswill be provided on the draft Final Report within three weeks after submission;and
(d) proposed terms of reference for follow-uptechnical assistance to help implementthe recommendationstogether with the Draft Final Report.
AP41N November 1991
(O&MStudy.NPR) - 81 - Annex 4-3 Page 1 of 8
REPUBI OQF9J,NA
NATIONAL FEEDER ROADS REHABILITATIJN AND MAINTENANCE PRO.ECT
Feeder Road Maintenance Performance Budgeting System
Terms of Reference
A. Introduction
1. The Departmentof Feeder Roads (DFR) of the Ministry of Roads and Highways (MRH) is responsiblefor the construction,rehabilitation and maintenanceof the country's feeder roads. There are at present some 21,900 km of classifiedfeeder roads in Ghana. Over the last two decades or so, most feeder roads have deterioratedto an extent that many are inaccessibleeven in the dry season. DFR has rehabilitated about 4,000 km of feeder roads from 1983 to 1991 and plans to rehabilitatean additional 8,000 km from 1992 to 1999, bringing the total of maintainablefeeder roads to 12,000 km.
2. Trunk road construction,rehabilitation and maintenancein Ghana is the responsibilityof the Ghana Highway Authority (GHA). It is responsiblefor a total of 14,430 km of trunk roads consistingof 6,000 km of paved and 8,430 km of gravel surfaced roads. GHA, which was establishedin 1974 as an authority, is well developedinstitutionally and has a maintenanceperformance and budgetingsystems.
3. DFR has its headquarters in Accra and 10 regional and 32 road area offices to cover the country-widefeeder road network. It is, at present, establishingfour regional workshops. It has a total of 1,431 employeesof which 36 are graduate civil engineers. DFR carries out all rehabilitationand periodic maintenanceand a portion of the routine maintenanceworks by contract. Its force accountoperations are limited to road surface routine and recurrent maintenanceand emergency-repairoperations. DFR does not yet have a well developedfeeder road maintenanceperformance and budgeting system for preparationof annual work program and related budgets. At present, programmingand budgeting are being done on experience basis with no systematicassessment of requirements. With the network under maintenanceexpanding and the rehabilitationprogram increasing, the need for a well developedmaintenance performance and budgeting system (MPBS)has become indispensable.
4. The Govermmenthas applied for IDA assistanceto contributeto the finance of a NationalFeeder Roads Rehabilitationand MaintenanceProject (NFRRMP). IDA has already provided funds for project preparation which is in an advance stage. A portion of the project funds will be used to finance consultantservices for the developmentof an MPBS. The scope of these services is defined in these TOR.
B. Objectives
5. The objectivesof the consultantservices under these TOR are to: - 82 - Annex 4-3 Page 2 of 8
(a) develop a methodologyfor determiningannual road maintenanceprograms and budget requirementscovering activitiesmaking up about 90% of funds required for maintenancetaking into accountfactors such as traffic density, axle load, weather, climate, terrain and age of the feeder roads;
(b) determine feeder road maintenancework loads based on (a) above and specify distributionof the work loads between contract and force account taking into account availabilityof labor-basedand equipment-basedcontractors; the cost effectivenessof the two methods of executionof work; appropriatenessof activities for measuring, quality control, supervisionand packagingfor contracting;
(c) determine funding and resource requirementsto carry out the work loads under (b) above subdividedinto contract and force account operations. For the force accountoperation determineDFR's requirementfor regular and seasonal labor force; equipmentand vehicles; hand tools; and road materials;
(d) develop an MPBS computerprogram for annual work programmingand budgeting for both contract and force account operations including determinationof labor, equipment,tools, and materials requirementsfor force account operations.
C. Scope of ConsultantServices
I. General
6. The Consultantshall examine existing feeder road inventory and condition surveys, collect data on factors related to feeder road maintenancework programming,cost data and other works herein described, as required to achieve the stated objectives. In conductinghis work, the Consultantshall collaborateclosely with MRH, DFR and regional administrativeofficials. The Consultantshall also conduct desk studies regarding O&M study, GHA's MPBS, and DFR's staffing plan and administrativeand accountingsystems. The Consultantshall be solely responsiblefor the interpretationof all data and studies to be reviewed and for his findings and recommendationscontained in his report.
II. Road Inventoryand ConditionSurvey
7. The Consultantshall carry out an inventory and conditionsurvey on all feeder roads under maintenanceapplying technicallysound procedures. The Consultantshall develop an appropriate and technicallyacceptable format and procedure for the feeder road inventory and conditionsurvey and the task will cover, inter alia, the following road features:
(a) type of road surface and width;
(b) road shoulder width, length and surface type; - 83 -
Annex 4-3 Page 3 of 8
(c) side, toe, and secondary ditches by shape of construction(V/U), paved and unpaved, and lengths;
(d) bridge structures by type of construction,size and location;
(e) culverts by type of construction,size, and location;
(f) fill and cut sections by depth and height, location and lengths; and
(g) conditionsurvey for each of the above features recording maintenance deficienciesfor each of the defined maintenanceactivities.
8. The Consultantshall identifyall feeder road maintenanceactivities making-up about 90% of the annual road maintenancefund requirementsand shall produce a clear and technically acceptabledefinition for each of the identified activities. The Consultantshall specify technicallyacceptable measurement units for each of the identifiedactivities.
in. MaintenanceWork Program
9. The Consultantshall develop a five year feeder road maintenancework program covering roads presently under maintenanceand those to be rehabilitatedduring the five year program period. The program shall be subdividedby road area and road links normally used by DFR for identification. In developingthe program, the Consultantshall determine annual quantity standardsfor each of the activitiesconsidering factors contributing to the frequency of the maintenanceactivities such as:
• age of the feeder road;
* climatic conditions - dry, moderate, wet;
* terrain condition - flat, rolling, mountainous;
* quality of surface materials;
• average daily traffic - up to 30, 30 to 50, 50 to 100 etc.; and
* frequency of occurrenceof each activity.
10. The Consultantshall defme the method used to develop the quantity standards showing weightingsapplied to the above listed factors in determiningthe quantitystandards. For example, the conditionof road surface is affected to a high degree by traffic, rainfall and quality of road surface material and to a lesser degree by terrain and age. The Consultant will give weightingsto relevant factors to show their effect in the occurrence of each maintenanceactivity.
11. The Consultant,based on the developedquantity standardsand the road conditionsurvey, will calculatetotal annual work programs for the roads under maintenance for each of the five year program period. Seasonalpeaks of quantity of work will be leveled over the number of working days available to execute each of the activities. This would mean - 84 - Annex 4-3 Page 4 of 8
that ditches eroded or filled with sediments will have to be corrected before the next rainy season starts.
12. The Consultantshall identify the maintenanceactivities which are appropriate and easy for contractingand group the total work program into contract and force account methods of execution. The Consultantin specifying maintenanceactivities by contract shall consider availabilityof equipment-intensive,labor-intensive and length-mancontractors to execute the work. The Consultantshall also provide methods for quantifyingand packaging works for contract, technical specifications,contracting and supervisionof contracts, procedures for quality control, and method of measurementof works done as well as contract work payment system and frequency.
IV. Methodsof Work
13. The Consultantshall develop methodsof work to be used to carry out each of the maintenanceactivities. The methods of work shall describe the tasks ^o be performed to complete the work of a maintenanceactivity. For example, the method of work for spot patching/gravellingcould includeplacing of signs to protect the workers, shaping the potholes to retain the material to be added, hauling and dumpinggravel at appropriatLplaces, spreading of gravel in the potholes to required level, compactingthe spread material, removing any excess material and removing the traffic signs. The work method should clearly define each of the tasks to be performed to attain a good quality of finished work.
V. Work Force
1.4. The Consultantshall develop the compositionof equipment, tools and labor required for a typical work force needed to carry out each of the maintenanceactivities. The work force will be developedfor all maintenanceactivities assumingthat contractorswill be used to carry out all activities. For short distance gravel haulage the Consultantwill consider use of farm tractors with trailers and for long distance haulage appropriatesize of tippers. Hand tools would be those normallybeing used in Ghana. For material production and loadingthe Consultantwill consider the cost and benefit as well as the factor of mobility between loader and dozer combinationand that of using a traxcavator to do both operations.
15. The Consultantshall determine hourly production rates for each work force and convert the hourly production rates to daily production rates taking into account travel time to and from work. Then from the daily productionrates the annual production rates will be calculatedusing the actual working days availablein a year by subtractingofficial holidays, weekendsetc.,. To develop the production rates for the work force, the Consultant shall carry out a survey on production rates presently being achieved by GHA and DFR work forces and contractors working for GHA and DFR. The Consultantshall adjust the rates obtained from the survey using his experience as well as by averagingvariations in the survey data.
16. The Consultantshall, based on the work force developed, calculate requirementsof equipmentby type and size, tools by type and labor force by job classification for the total program for the five year program period subdividedby road area and road link. First the total force input for each of the five years will be calculatedfor the total annual program and then requirementsper specifiedoperation will be separatelyprovided. Where - 85 - Annex 4-3 Page 5 of 8
only a fraction of an equipment is required in a road area the sharing road areas will be specifiedtaking into account the mobility of the equipment.
VI. MaintenanceCosts
17. The Consultantshall develop maintenancecost per unit measure for each of the identifiedactivities using the production rates developedfor each work force under para. 15 above and by adding cost of materials and consideringthat all activitieswill be carried out by force account. The unit costs developedwill be adjusted to reflect headquarters and field direct overhead costs. The cost will be broken down into equipment,tools, labor and materials. The equipmentcost shall show the equipmentowning and operating costs separately. The Consultantshall then convert the force accountunit costs to contract unit costs by applying relevant variationsbetween the two methods of operation such as profit margin, business tax etc., which are not considered for force accountcosting.
18. The Consultantshall, using the unit costs, calculate the cost for the total program broken down into the followingthree categories:
(a) total program cost using force accountunit costs;
(b) total cost of works specified for contract using contract unit costs; and
(c) total cost of works specified for force account using force account unit costs.
VII. MPBS Computer Program
19. The Consultantshall develop computerprograms for the effective application of the MPBS. The program should allow entry of basic MPBSdata on road inventory, conditionsurvey, quantitystandards, work force compositionand unit cost per unit measure. From such basic data, the computer program should establish: (a) work program by activity for country-wide, road area and individualroad link; (b) work force requirementsbroken down into the force compositionfor total country, for each road area and individual road link; (c) annual road maintenancefund (budget) requirementby activity for country-widesummary, by road area and by individualroad link.
20. The computerprogram should allow entry of work accomplishmentand expendituresfor each activity for specificroad links and be able to give comparison between physical accomplishmentand target and budget allocation and expenditures. It should also provide a system of carrying forward backlog in program accomplishmentto the next year program. Such carry forward backlogs will be checked and comparedwith annual road conditionsurvey and the program shouldallow for adjustmentof basic data.inputs on quantity standards, work force, production rates and unit rates shall be arijusted.
VIII. Implementationof the MPBS
21. The consultantin consultationwith DFR shall select an appropriatepilot road area to test the MPBS. DFR will ensure that the pilot road area has sufficientqualified staff to understand and test the MPBS. DFR will also arrange that other road area staff are periodicallysent to the pilot road area and receive training by the consultanton the - 86 - Annex 4-3 Page 6 of 8
implementationof the MPBS so that they will be fully trained to introducethe system in their own road areas as soon as the country-wideimplementation of the MPBS starts. Based on the results obtained in the pilot road area, the Consultantshall adjust the MPBSdata inputs to ensure that the system does reflect as much as practically possible the actual field conditions. The Consultantwill develop a program of action for DFR to implementand monitor the MPBS country-wide.
IX. Key Personnel and Time Schedule
22. The Consultantshall develop the MPBSwithin six months of start of assignment in Ghana and shall test the MPBS in a selected pilot road area over a twelve months period thereafter. The services are estimated for input of 43 man-months. The consultantis free to propose his own compositionand duration of assignmentof key personnel. The client-proposedcomposition and duration of assignmentof key personnel is as follows:
(a) Civil Engineer/TeamLeader: - with at least 15 years of experience of which the last seven years should be in road maintenanceprogramming and management,portion of which shouldbe with a public works agency responsiblefor roads. He shall have sufficientexperience in an up to date computerbased road maintenanceperformance budgeting system and has about three years cumulativework experience in the Africa Region - for the first ten months on continuousbasis and intermittentlyanother six months during the pilot road area testing of the MPBS;
(b) Budgetingand Cost AccountingSpecialist: - with at le2st 15 years experience of which 7 years are in public works agencies responsiblefor road constructionand maintenance- for six months during the developmentof the MPBS and for the last two months of the MPBSpilot road area testing;
(c) Computer SystemsSpecialist for four months intermittentlyas required;
(d) Civil Engineer: - with at least 15 years experience of which last eight years shall be in road constructionand maintenanceand has at least three years experience in Africa Region - for 12 months during the pilot road area testing of the MPBS; and
(e) EquipmentSpecialist: - with at least 15 years experience of which eight years are in road constructionand maintenanceequipment - for three months during the system developmentperiod.
X. Training
23. The full benefits of the MPBS will be captured only if the right caliber and sufficient number of DFR staff are fully trained on the developmentand applicationof the MPBS; on the developmentand applicationof the computerprogram; and on the methods of updating the input data. The Consultantshall give due attention to the training requirementunder this assignment, and DFR will ensure that required caliber of counterpartsare assignedto the Consultantfrom the start of the services. The Consultantand DFR will select the right - 87 - Annex 4-3 Page 7 of 8 counter- parts based on selection criteria that will be developedby the Consultantand agreed upon by DFR. DFR will ensure that the counter- parts will continueto work on the tasks after the Consultanthas left Ghana. DFR's MPBSstaff will train their replacementsin the event that they have to change their assignments.
XI. Reports and Time of Submission
24. The Corsultant shall submit the followingreports at the times specified for each:
(a) InceptionReport (8 copies): - within six weeks after start of assignment in Ghana;
(b) Road Inventory and ConditionSurvey Report (12 copies): - within three months after start of assignment in Ghana;
(c) Draft MaintenanceWork Program Report (8 copies): - within six months after start of assignmentin Ghana. DFR will provide the Consultantits and Bank's commentson the draft report within one month after submissionby the Consultant;
(d) Final MaintenanceWork Program Report (20 copies): - within seven months after start of assignmentin Ghana;
(e) Draft Report on Method of Work and Work Force (8 copies): - within five months after the start of assignmentin Ghana. DFR will provide the Consultantits and Bank's commentson the draft report within one month after submissionby the Co:isultant;
(f) Final Report on Methodof Work and Work Force (20 copies): - within seven months after the start of assignmentin Ghana;
(g) Draft MaintenanceCost Report (8 copies): - within eight months after start of assigrnmentin Ghana. DFR will provide the Consultantsits and Bank's commentson the draft report within one months after submissionby the Consultant;
(h) Final MaintenanceCost Report (20 copies): - within ten months after the start of assignmentin Ghana;
(i) Draft MPBS Computer Program Report (8 copies): - within six months after start of assignmentin Ghana. DFR will provide the Consultantits and Bank's commentswithin one month of submissionby the Consultant;
U) Final MFBS Computer Program Report (20 copies): - within eight months after start of assignment in Ghana; and - 88 -
Annex 4-3 Page 8 of 8
(k) PMBS ImplementationReport (8 copies): - Two months before MPBS implementationfor testing in a pilot road area ends.
AF4IN November 1991
(PerBudSy.NFR) - 89 -
Annex 44 Page 1 of 3
REPUBLIC OF GHANA
NA=TNAL FEEDER ROADS REHABIfITATIONAND MAINTENANCEPRO.ECT
Monitoring and Evaluation
Terms of Reference
A. Backgroundand Introduction
1. The Government of Ghana and IDA intend to monitor the NFRRMP in order that experiencesgained can be taken into account in ongoingprojects and other future projects such as the proposed German grant for rural roads in Northern Ghana. The indicators to be monitoredhave been compiledfrom experiencesgathered by DFR from the many projects that it has handled in the recent past includingthe Sefwi Wiawso Pilot Labour-BasedProject and other donor assistedprojects.
2. Reliable estimatesof the NFRRMP impactson agriculturalproduction and productivity as well as other sectors of the economy would require detailed sample household survevs. The sample size will have to be carefully selected such that both accuracy and reliability are not sacrificed in much the same way as not to make it too expensive. In view of the geographicalspread of the NFRRMP projects areas, it may not be possible to undertake a baseline study of all road areas and, hence, other availabledata in DFR collected by consultants, as well as secondary data, should be used as much as i possible and inferencesmade, where possible.
3. Methodology to be used in monitoring the program will be developed by economic consultantsto be engaged to assist with data collection. The project will also be designed such that DFR's district and regional offices would be responsible for monitoring physical progress, technical performance of project components,and the performanceof contractors.
4. Objectivesof Monitoring:
(a) to measure economic impacts of feeder roads improvementon the areas served and to compare these with the costs of rehabilitationand maintenance;
(b) to monitor project performanceand provide data needed for estimatingactual ERRs on feeder roads selected for rehabiiitationand maintenance;
(c) to measure changes in agriculturalproduction of specific crops brought about as a result of improved access;
(d) to measure increascesin ADT volumes and any changes in farm gate prices of agricultural produce attributableto improved access;
(e) to provide other data which will assist DFR to improve upon its method of pre-selecting feeder roads for investment; - 90 -
Annex 44 Page 2 of 3
(f) to provide DFR with a scientific basis for assessing the performance of all NFRRMP components.
B. Scope of Work
5. Data to be used in monitoringand evaluatingthe NFRRMP will be supplementedwith secondaryinformation. Specializedconsultants will be used in collectingprimary or survey data but DFR will attach counterpart staff where possible.
6. The consultantsto be engaged will help DFR define a cost-effectivemethod to measure program impacts and also define measurableindicators, selection of appropriatesample sizes, designand pre-testingof questionnaireas well as the collectionof data. Consultantswill ensure that the sampling method, frame and procedure capture both daily and seasonal variations.
7. From empiricalevidence available at DFR, impactsof road improvementwill includethe following:increase in agriculturalproduction, reduction in transport cost, reductionin head porterageanA shifts in modal usage, increasein traffic volume, employmentgeneration as well as other non-quantifiable benefits.
8. Attemptswill be made to isolatethe impactof improvedaccess on differenttypes of crops within the project road areas. This will be done considering sampled farm families and standardizing farm and family sizes. Consultantswill ensure that appropriatefarm models are used.
9. Increase in traffic volumes will be assessedon the basis of traffic surveys, taking account of vehicle types and modal usage. Duration, times and survey points are to be determinedby consultants. Attemptswill be made to estimateboth generatedand divertedtraffic by analyzingthe rural road network anidthe conduct of an origin and destinationsurvey.
10. Transport costs are to be estimatedfrom surveys of road users on project and non-project roads using data gathered before, during and after the NFRRMP. Distances covered by vehicles as well as the cost and extent of head porterage are to be assessed.
11. Consultantswill be requiredto developother measurableindicators for project monitoring in broad sectors such as non-agriculturalproduction, income, crop marketing and commerce, social, institutionaland demographicchanges. The real importanceof the NFRRMP is its impacton agriculture and the other sectors, and not the other changes they cause directly. This basic principle is therefore to guide consultants in the choice of variables for the monitoring and evaluation. The emphasis of monitoringand evaluation will be on these social, economicand related variables wh;ch are essentialto obtain better estimates of the impactof NFRRMP.
C. Manpower Requirements
12. The study is initendedto be undertakenby a consi'ltingfirm. Each shortlistedfirm will be required to propose a team comprising, but not limitedto the following:
* Project Coordinator; - 91 -
Annex 4-4 Page 3 of 3
* Agricultural Economist; * Regional Planner/TransportPlanner; and * Systems Analyst/Statistician.
The monitoring and evaluation componentof the NFRRMP will require about 27 person-monthsof consultants' efforts.
13. Schedule of Activities:
(a) Developmentof consultant's work plan. This shouldinclude a detailed methodologyof the study plus schedule of all interviewingforms, dates and monitoringplan.
(b) Submissionof InceptionReport one month after signing contract.
(c) Annual reports covering all monitoringtopics and indicatorsas outlined above.
(d) Major report would be prepared before project mid-term review on the basis of available informationon all project indicators.
(e) Preparation of sections of the Project Completion Report which would contain the -economicevaluation of the project and summaries of the main conclusions as regards economic benefits and costs as well as other conclusions and appropriate recommendations.
AP41N November 1991
(MoniEval.NFR) - 92 -
Annex 4-5 Page 1 of 4
REPUBLICOF GHANA
NATIONAL FEEDER ROADS REHABILITATION AND MAINTENANCE PROJECT RecommendedDFR Organization
A. DFR's InstitutionalStatus
1. The assignmentof feeder road functionsto a single institution is entirely appropriate. It ensures that feeder roads are not neglected in favor of trunk roads. Responsibilityfor performance is not diffused over a number of agencies and therefore accountabilityis more easily achieved. DFR's separate status has allowed it to develop a successfullabor-based technologyand a philosophy of promotingprivate contractors. There is therefore no case for any fundamental changes in the structure of responsibilityfor feeder roads. The proposed formal 0 & M Study will built on the recent DFR organizationanalysis, which was executedas part of project preparation, and will thoroughlyanalyze DFR's institutionalcapacity as needed for the implementationof the 8 year NFRRMP. B. HeadquartersSetup Proposed Planning and Contract AdministrationDivision
2. This new division would comprise the existingPlanning, Quantity Survey and AccountsSections. Its functions would be:
(a) Project Preparatvon
* Project identification * Feasibilitystudies * Tender documentation * Procurementof consultants,equipment and works includingcalling of bids, evaluation and award * Checking of tender documents,bills of quantities, etc. produced by the regions or consultants
(b) Financial Control and Allocation
* Account for funds spent * Report to donors on disbursement * Monitor disbursements,compare to programs, check for expenditureperformance, etc. * Ensure availabilityand allocationof programmedfunds * Check and prepare payment certificatesas necessary * Create and maintain assets register (c) Monitoring * Devise and operate arrangementsfor effective monitoringof implementationand physical performance, includingcomputerized databases - 93 -
Annex 4-5 Page 2 of 4
* Prepare and implementDFR's computerizationprogram | Organize collectionof unit cost data for use for budgeting and preparation of Bills of Quantities
(d) Planning and Budgeting * Provide guidanceto regions on planning and budgeting for feeder roads * Coordinateand prepare annual budget for all categoriesof expenditure * Develop a planning methodologyfor use by the regions which will integrate rehabilitationand maintenanceoperations into a physicallyand financiallysustainable network * Review action plans prepared by regions using the methodology * Coordinateaction plans into a sub-sectoralstrategy
3. There are a number of important features to note about the proposed division. First, it will combinethe three disciplines:quantity surveying, planning and accounting which have importantlinkages and interrelationshipsthroughout the project cycle.
4. Second, it will act as a common resource or service unit for both the existing Developmentand MaintenanceDivisions. This will help ensure that no bias developstowards either kind of activity. It will provide monitoringinformation on physical performancewhich is essential for both divisionsto carry out their activities. The mechanicaland procurementsections of the MaintenanceDivision will have a strong linkage so as to ensure that its procurementof equipment is coordinatedwith the implementationof donor supportedprograms.
5. Third, the creation of the new division will not remove the need for support by a contract managementspecialist to assist in DFR's procurementoperations. Much of the work to be carried out by the contract managementspecialist is of a mechanical,albeit complex nature. It is essential work for the efficient implementationof donor supportedprojects. There is neither the capacity nor experience within DFR to do this work. It is clear that a more concertedtraining effort should be made in order to ensure that DFR can carry out these functionsin the future. DFR quantity survey and accountancystaff of the appropriatetraining and experiencewill need to be attached to the contract managementspecialist. 6. Fourth, there remains the issue o1 now much pre-contractwork can be undertakenin the regions. It is desirablethat as much as possible is done at this level. Almost by definition, procurementof consultantshas to be carried out at headquarters. However, judgement will need to be made on a case-by-casebasis as to whether a region has the capacity to undertakeprocurement of all local works contractors. This will depend on staffing quality and quantity, their existing workload, familiarity with donor procurementprocedures, and the workload involved in the project concerned. If work cannot be undertakenin the regions, it should be done by consultants. Checking of such work will alwayshave to be done at headquarters, but the work itself should rarely, if ever, be undertakenthere.
7. ED, staffing for the new division will need to be augmented. The chief quantity surveyor has iimritedline support. As soon as possible, senior staff should be hired to fill existing positions within the organization. If necessary, this should be done through contract appointments. The conversionof DFR to a subventedauthority would make such action easier. - 94 -
Annex 4-5 Page 3 of 4
Existing Developmentand MaintenanceDivisions
8. The Developmentand MaintenanceDivisions should continue to operate in the flexible way in which they do at the moment. However, they shouldbe prepared to cooperate in ensuring that there is a proper baiance between their two activitiesat regional level and that planning by regional staff is give l a high profile. The AdministrationDivision would contain personnel and training, and administrationsections only.
C. Regional Setup
Planning
9. The role of planning at regional level needs to be promoted. Therefore, training needs to be given to regional engineers who will ultimatelyhave to take responsibilityfor planning. They also need to be given the support of a small Planning and ProgrammingUnit. The function of this unit would be to: * make an inventory of feeder road conditionsin the region;
* determine feeder road priorities in the region, in close coordinationwith District Assemblies;
* devise costed maintenanceprograms (Action Plans) which maximizeunit cost efficiency and concentrateon the top priority feeder roads in the network;
* determine rehabilitationand periodic maintenancerequirements in the context of likely availableresources to maintain the whole priority network and incorporate into Action Plans;
* prepare annual budget proposals;
* provide planning advice to District Assembliesand their District Road Committeeson feeder road prioritization and incorporate communitypreferences into Action Plans and budgets.
10. It is envisaged that a typical Planning and ProgrammingUnit would have a staffing complementof three comprisinga transport planner/economistand a civil engineer, supported by a technician.
Donor Support Strategy
11. There should be maximumpossible devolutionof responsibilityto field level. Concern has already been expressedthat a number of regions are below strength and that the rehabilitationprogram could place additional strains on maintenancecapabilities. It is a matter of concern that projects designed to enhance maintenancecapability do not mesh with rehabilitation projects nor priority maintenancerequirements. - 95 -
Annex 4-5 Page 4 of 4
12. There is a considerabledegree of complexityin current donor support arrangements which impose a complicatedmanagement burden. It is therefore difficult to determine how the various donor projects reinforce institutionalcapability, if at all. Future donor arrangementsneed to be more clearly focussed on supportinginstitutional strengthening and promoting effective field management.
13. To achieve this end, it is therefore suggestedthat: * there shouldbe a reappraisal of the regions in which NFRRMP activity is initiallyto be concentrated;
* rehabilitationprograms should not be expandedinto new regions before those that are initially selected are fully operational;
* first priority shouldbe given to those regions which combinea high proportion of maintainableroads and high agriculturalpotential rankings derived from socio- economic studies;
* NFRRMP concentrateson developingoverall capacity within selected DFR regional organizations,including the creation of convincingmaintenance capacity, as an essentialprecursor of rehabilitationoperations.
14. It is proposed that NFRRMP concentrateinitially on Central, Ashanti, Brong Ahafo, and Northern regions. Special arrangementscurrently apply to Sefwi Wiaswo, which should continue given that the labor-based contractorprogram was started there, but the general upgrading of the regionalorganization should not receive priority. The same argumentmust apply to Koforidua, as it would be undesirableto move the labor-basedtraining school again. 15. Likewise, there should be reconsiderationof the priority given to the Upper West region. It is realized that this may prove a difficult issue, but it should be understoodthat the price of going ahead in this region may be the neglect of a maintainableroad network in another region.
16. The entire program for regional institutionalstrengthening between 1991 and 1996 is as follows. This has been developedby comparingthe maintenancepriority targets with the prioritizationsof road areas resulting from the socio-economicanalyses undertaken for NFRRMP: 1990/91 Ashanti, Brong Ahafo, Central, plus Sefwi Wiaswo and Koforidua road areas. 1992 Northern. 1993 Eastern, Upper West. 1994 Upper East, Greater Accra. 1995 Volta. 1996 Western.
AF41N Novenber 1991
(DFROWan.NFR) - 96 -
Annex 46 Page 1 of 4
REPUBLIC OF GHANA NATIONAL FEEDER ROADS REHABILITATIONAND MAINTENANCE PROJECT DFIRStarrng Requirements
A. Regional Level
1. The following table projects demand and supply for engineers in the regions. It is based on numerous assumptionsin addition to those mentionedin the notes to the table, for example, on the numbers of extra staff needed to implementNFRRMP in the field. DFR Regional StaffingRequirements - ProfessionalEngineers
Note 1991 1992 1993 1994 1995 1996 MinimulmRequirement 1 45 46 47 49 50 50 Cocoa Rehabilitation 2 4 4 4 4 4 Project 24 4 44 Other Projects 3 5 5 3 NFRRMP = = 5 10 10 10 10 Totals 54 60 164 63 64 60 Staff inPost 4 33 38 43 48 53 58 PostgraduateTraining 1 1 1 2 3 3 3 Shortfall 22 23 118 18 14 5
Notes: I. This figure includes all engineers needed for basic administration,SIAM, MOREMAT,etc. 2. DFR engineers on attachmentto consultants. 3. TRP-1, TRP-2, PAMSCADetc. 4. Assumes intake of 6 graduate engineers per year, al; allocatedto field positions, with attritionof 1 engineerper year. 2. It is estimated from the table that the ultimatefield establishmentof professionally qualifiedengineers shouldbe 60. This total would cater for normal, not peak, workloads, over the NFRRMP project duration, assumingthat the workloadwill not alter significantlyafter 1996. It also broadly incorporatesthe principles regarding the proportionalassumption of design and constructionsupervision responsibilities by DFR and consultants. In the above table, it is assumed that this consultancyinput for constructionsupervision will mainly be absorbed by the Cocoa RehabilitationProject throughoutthe projectionperiod.
3. Before the theoreticallydesirable staffing complementis achieved, there will be a serious shortfall of DFR staff, especiallyover the short term. This is clearly indicated in the above - 97 -
Annex 4-6 Page 2 of 4
table. Unless managementof ongoing maintena'ce operations is relinquishedin a number of regions, almost all constructionsupervision must be undertakenby consultantsover the projection period. Even then, staff numbers will be barely sufficientto run minimum requirement needs on the basis of existing staffing ratios and the implementationprograms for strengtheningof regions (see Annex 4-5). This means that considerationmust be given to one, some or all of the following alternatives: * that some staff must "doubleup" and accept additional responsibilities; * that the program for NFRRMPmust be slipped;
o that inductionand training of new staff must be stepped up over the next three years;
* that technician engineers are used more frequently in place of professionalengineers where shortfalls occur;
* that additional consultantsor technical assistancemust be hired to meet the shortfall.
It is suggestedthat, under all circumstances,there is a reworkingby DFR managementof the projection shown in the above table once the NFRRMP implementationstarts.
4. It is not so straightforwardto predict requirementsfor other important groups of staff. The current role of technicianengineers in particular is largely to substitutefor civil engineers. Their major formal task within the current structure is to act as road area engineers, for which there are ultimately 32 positions available. They will be required to oversee MOREMATunits once they are fully set up, which will require another 10 positions. There are 17 technicianengineers currently employed in DFR, with a ceiling of 37. This number includes all mechanicaland geodetic as well as civil technicianengineers. Approrimately25 additional positions for civil engineer technicianswill be required to cope with a fully fledged regional network.
5. The demand for foremen is very high. The present output of trained foremen is insufficientto meet the scheduled contractor output and support the proposed program of regional institutionalstrengthening. A revision is proposed to the training program for foremen, involvinga reduction in the numbers of contractors(and consequentlycontractor supervisionforemen) trained in 1992/3. The impact of this is shown in the following table. This will allow the phased program for the introductionof SIAM, MOREMATand community-executedroutine maintenance arrangementsto be properly staffed. The only training of foremen that would be needed after 1996 would be to compensatefor natural wastage from the workforce, or for in-servicetraining. This revised training program has been reflected in the projectionsof labor-based contractor capacity. - 98 -
Annex 46 Page 3 of 4
Foreman Manpower Requirements(Revised Training Program)
1990/91 1992 1993 1994 1995 1996 Regions subject to Ashanti Northern Eastern Upper Volta Western Comprehensive Brong Ahafo East Upgrading Central plus Gr. Accra Sefwi Wiaswo I ______Koforidua __I NumberofRoad 11 4 7 4 3 3 Districts l Number of Political 50 13 16 11 12 8 Districts I No. of SIAM Foremen 22 8 14 8 6 6 - Towed Grader and Culvert Teams l No. of District 50 13 16 11 12 8 Foremen No. of MOREMAT 14 Foremen (1) _ _ _ No. of Contractor 49 12 12 12 12 12 SupervisionForemen Total Annual 33 42 31 30 26 AdditionalDFR Foremen Required Total DFR Foremen 135 168 210 241 271 297 Required Total Trained (2) 86 118 150 182 214 246 Shortfall 49 50 60 59 57 51
Notes: (1) No. of MOREMATunits reduced from 18 originally estimated by DFR to 14 (2) Assumed annual output of training program at Koforidua is: 48 contractors staff (= 12 contractors) 12 contractor supervisionforemen 20 other DFR foremen
B. Headquarters
6. The major new initiative recommendedfor headquarters is the creation of a Planning and Contract AdministrationDivision. Otherwisethere is little need seen to change the current - 99 -
Annex4 Page 4 of 4
headquarters administrativestructure. There are a number of unfilledposts at headquarters. These need to be filled as soon as possible, through outside recruitmentor short-term consultancies. Particular mention needs to be made of the need to fill all vacanciesin the Survey and Design Section and Quantity Survey Section. There will be an additional need for ongoingtechnical assistanceto the Quantity Survey Section. C. Staff Availability
7. Some 40 civil engineers graduate each year from the Civil EngineeringDepartment at the Universityof Science and Technologyin Kumasi. DFR is a favored destinationof recent graduates and there are no problems in recruiting six new graduates each year. It is doubtful whether DFR could cope with a larger influx than this. It is likely that, as the organization becomes more mature, the possibilitiesfor fast-trackprofessional development that now exist will become less common and consequentlyDFR will have to compete harder to attract graduate engineers.
8. Twenty diplomaholders are produced each year by the UST. The general demand for these is not as strong as for civil engineers. DFR should be able to recruit for its needs successfullyfrom amongst this group.
AR4IN November 1991
(DFRStaff.NFR) - 100 -
Annex 4-7 Page 1 of 2
REPVBLIC OF GHANA
NATIONAL FEEDER ROADS REHABILITATION AND MAINTENANCE PRQJC DFR Traininm Program
A. In-ServiceTraining
1. The labor-basedtraining course that is now run from the KoforiduaTraining Institute has been highly successful. It is intendedthat technical assistanceby external agencies such as ILO be provided for the institution. The success of Koforiduashould be used to provide an anchor for a broader training ;nitiative. If training is to be successful,it should have a permanentbase to operate from and a constituencycontinually promoting it. Otherwiseit is almost inevitablethat training will be relegated to last priority as more urgent, shorter term considerationscrowd it out.
2. It is therefore suggestedthat a project is designedto define the scale of investmentin buildings, plant and permanentstaff complementneeded to run Koforidua as a full-time training institution. This should be accompaniedby a full financial plan, includingassessment of charges that should be levied. It is expectedthat the training institute will continueto run courses in labor- based technologyfor contractorsand DFR staff. Interest in attendingsuch courses may be attracted from other West African countries or they may wish for their instructorsto be trained. There is scope for liaison with the Civil EngineeringDepartment at the Universityof Science and Technologyat Kumasi to instruct undergraduates. GHA may also wish to participate. It is expected that the institute would take the lead in providing in-servicetraining for DFR staff at all levels.
3. DFR has already devised an in-servicetraining program for 1991 and will continueto do so every year. It comprisesinduction courses for new recruits as well as training for more experiencedstaff. Details are shown in Attachment1. The inductioncourses are designed to give new staff exposure to all relevant aspects of DFR organizationover a 24-monthperiod. It is well thought out and requires no further comment.
4. The topics proposed for training more experiencedstaff are quite comprehensive. The orientation of the training topics emphasizestechnical skills. However, the emphasis of DFR's operations is very much on managementand planning and course modules need to be designedto enhance capabilityto undertakethese tasks. Complementaryto this is a need to understand financial and accountingprocedures, procurementand reporting and monitoring. It is highly likely that computer technologywill be introducedinto regional offices, especially in connectionwith planning, budgeting, monitoring and accountingover the next few years, and this must be accompaniedby training. Some instructionis needed on the procedures associatedwith major donor project cycles. Althoughheadquarters staff might benefit from general managementcourses, regional staff in managementpositions particularly need exposure to the subjects outlined above. 5. It is essentialthat course structure and content is ultimatelydriven by managers and not by the permanent training staff it is suggestedbe employed. This will ensure that courses are not over-academicand will yield practical results. Project design for the Koforidua center must include a system for monitoringthe impact of training activitiesto ensure that a beneficialimpact on efficiency and productivity is achieved. - 101 -
Annex 4-7 Page 2 of 2
B. External Training
6. A target of approximatelyone-third of professionalstaff should receive postgraduate training. The prospect of such training will also be an important incentivefor staff to remain with the organization. All postgraduatetraining must be uDw. aken abroad. A potential problem is that not all those who go on such training abroad return to Ghana. Opinionwithin DFR (and experience with GHA) is that this has not been a problem for them to date. It is therefore intendedunder the NFRRMP to set aside funds for some three students from DFR to undertakepostgraduate training annually, assumingfunds will not become availablefrom other sources. The number sent each year may have to vary dependingon the demanusof the projerts DFR is carrying out. Proposed postgraduatetraining shown in Attachment2 has been adjusted in early years to accommodatesuch considerations. 7. Technicianengineers should continueto be given the opportunityto pursue undergraduatetraining. The Schoolof Engineeringat Kumasineeds to receive some attention if its studentsare to receive training appropriatefor employmentin DFR. There are no staff currently availablewho specialize in highways or transportation. This situationis claimed to be a function of poor salaries at the University and the consequentloss of staff. There are also problems of shortage of teaching space and equipment. A proposed project (costing$3.9 million in 1989 prices) has been formulatedby the Schoolto provide new facilities and to fund ten additional staff. No donor has yet been found to support the project.
AF4IN November 1991
(DFRTrain.NFR) - 102 - Anex 4 Attachment1
RKUILIC OF GIMANA
Annual. Schedule of Tn-House Training Pro.rain.
1. Course8 PromotionCourse for TechnicaLAssistant 4 weeks Mid Februaryto mid March 2. Course8 PromotionCourse for SeniorTechnicaL Ass. 4 weeks MidJuLy to midAugust 3. CourseC MaintenanceManagement Course 6 weeks Julyto midAugust 4. CourseD Introduction to PersonnelManagement 4 weeks February S. CourseE Project SupervisionCourse 3 days June o. CourseF OfficeManagement and Administration 4 weeks July 7. CourseG Stores Management 4 weeks Mid Aprilto midMay 8. CourseH Administrative Seminar 11 days August 9. Course I First GraderOperators' Course 4 weeks Mid Januaryto mid February
SecondGrader Operators' Course 4 weeks March 11. CourseK Third GraderOperators' Course 4 weeks May 12. CourseL ORT/GHARTPU Training 8 weeks Marchto April 13. CourseM Training of Trainers 6 weeks Augustto mid September 14. CoursgN SemIinaron four years of L.I.P. 1 day March 15. Course0 Contracts ManagementSeminar I day May 16. Curse_P Third PasscadTraining 23 weeks Januaryto mid June 17. Cggrse0 Fourth PamscadTraining 23 weeks July to mid December No. Courae/Seminer/Conference '92 *93 *94 *95 Duration Tuition Per Air Cost/ Total Fees Diem Fare iNnee Cost
1. Nsa ¶'.. HighwayEngineering1. ke .n High Engineering ~~~~~~------inh US$S ------for veloping CoLmtries 1 1 1 1 12 mos 13,000 11.000 2.300 26,301i 105,200 2. Mtc in Transportation and Road Engineering in Developing Countries - I - 24 mos 12,000 47,753 2.500 62,253 62,253 3. Nsc in Transport Engineering I 24 mos 34,000 11,540 2,800 48,340 48,340 4. Course on Bride Inspection and Maintenance I - 1 - 24 mks 6,500 6,552 2,800 48,340 48,341 5. Road Nointenance anagement Course - 1 - 1 12 ks 15,700 5,30 2.300 23,300 46,60D 6. International Course for Labor-Based Road Maintenance and nagement Program 6 6 6 6 6 wks 5.000 120 1.150 6,270 150,480
7. Organization 1 1 I 1 4 mks - 1.100 1,900 3,000 12,000 8. Course on Techno-Eromamic Feasibility of Road Design, Construction and Naintenance in Developing Coumtries 1 1 1 1 4 wks - 500 - S00 2,000 9. Nsw in Transportation Plamiing 1 - - - 24 mos 34.000 11t540 2,800 48U340 48,340 10. Msc in Construction NMaagement 1 1 1 1 12 as 13.000 11.000 2.300 26,200 52,600 11. Project Management Program 1 1 1 1 4 mks - 1,100 1.900 3.000 12,000 12. Nsc in Transport Plaming and Engineering - IS - 12 mas 13.000 11,000 2,300 26,300 52.600
13. Rural Transport Investment 1 1 - - 4 wks 5,000 512 1,150 6,662 13.325 14. Post-Graduate Diploma in HumanResource Development 1 - - - 9 mos 12,300 8,400 2,300 23,030 23.000 15. Training - Its Design r 0 and Management 1 - - - 12 wks 15,700 5.300 2,300 23.300 23.300 l D 16. Advanced Logistics 4 Management 1 - - - 12 mks 15,700 5.300 2.300 23.300 23.000 r2t Pcst-OrWwte pld 17. 102,400 Cutus In Survaylun I 1 1 1 12 me 17.300 11.000 2,300 25,600 19.800 1J. N In Irwpwrtat1an 1 - - - 12 10,000 7,000 2,800 19,800
rt - 105 -
Annex 4-8 Page 1 of 4
REPUBLIC OF GHANA
National Feeder Roads Rehabilitation and Maintenance Pro'ect
Domestic Construction Industry Capacdtv Assessment and Development Study Terms of Reference
A. Objectives
1. The objective of the consultantservices under these TOR is to make an in-depth assessmentof the problems and constraintsthe domesticconstruction industry is confronted with and to develop a strategy and plan of action needed to be undertakenby GOG, user agencies, donors, commercialbanks, contractorsetc., to support the developmentof the industry within limits of job availability.
2. The objectives of the consultant services under the TOR are to:
(a) assess the present and potential capacity of the "A" and "B" class domestic contractorsin skill and experience of business management;construction work planning;programming and execution; manpower, equipmentand financial capacities;and technicalcapability to meet internationalquality standards;
(b) assess the business environmentand policies of governmentand the private sector to create an enablingenvironment for the improvementof a better local constructionindustry;
(c) recommendshort and long term measures and actions to be taken by the government,the private sector includingcommercial banks, external financing agenciesand by the industry itself to introduce an enabling environmentso that the availabledemand for the industry could be fully catered for.
B. Scope of Consultant Services
3. The consultantshall conduct the tasks of the assignmentspecified herein, to fully achieve the stated objectives. In conductingthe assignment, the consultantshall apply sound technical, financial and business practices relevant to attaining the stated objectives. The consultant shall obtain required data and informationon the industry from MRH, GHA, DFR, DUR, contract supervisory consultants,contractors, relevant financingagencies and commercialbanks.
4. The consultantshall collect and review all studies, reports and financingagency project documents related to the support and developmentas well as performanceof the industry. The consultantshall be solely responsiblefor the interpretationof all data, studies, reports, reviews, etc., and for the findingsand recommendationscontained in his final report. - 106 -
Annex 4-8 Page 2 of 4
5. MRH, GHA, DFR and DUR will, upon consultant's request, provide needed documents, reports and studies relevant to the consultant's assignmentand shall assist in coordinatingcontacts with relevant govermnentagencies, banks, contractorsand consultants.
6. The consultant shall carry out, inter alia, the following tasks:
(a) review all reports and records maintainedby the contractingadvisor engaged under the IDA financedProject ManagementUnit (PMU);
(b) obtain from Bank for Housing and Construction(BHC) loan application evaluation documents;lists and value of equipment,holdings, tools, and spare parts and operating loans provided to individualcontractors; and loan repaymentrecords. The consultantshall assess the capacity and credit worthiness of the individualcontractors; assess reasonablenessof the interest rates charged by BHC includingfinancial risks borne by contractorsand the effect of devaluationof the cedi;
(c) obtain from commercialbanks contractors' loan and loan repaymentstatus and assess the soundnessof the loan interest rates charged by the commercial banks;
(d) obtain from GHA, DFR, DUR, and other relevant agenciescontracts undertakenby the "A" and "B" class contractorsover the past five years includingdetails of performanceof the contractorsboth in quality and contract completiontime and assess the performanceof the contractors over the past five years;
(e) produce representativelists for Al to A4 and Bi to B4 contractorsbased on data obtainedunder (d) above and conduct a survey leading to a contractor business performancereview using a well designed survey questionnaire;
(f) obtain contractor performanceassessment from user agencies (GHA, DFR, DUR etc.) using a questionnaireto obtain realistic performancerating;
(g) obtain contractorperformance assessmentfrom contract supervising consultants using a questionnaireto obtain realistic performancerating;
(h) review and assess policies and procedures of lending provisionsof public and private banks to the constructionindustry;
(i) carry out a survey of training provisionswhich have been made availableto the constructionindustry by GHA, DFR, DUR and other institutionssuch as technical training schools, universities,and business managementtraining institutions;
(j) identify main problems and constraintsaffecting the developmentand performance of the local constructionindustry based on informationand - 107 -
Annex 4-8 Page 3 of 4
performanceevaluations undertaken from (a) to (i) above, clearly defining reasons, causes and effects of the identified problems and constraints;
(k) identify implementablepolicy and procedural reforms to be undertaken by GOG, the private sector and public and commercialbanks to support the developmentof the local constructionindustry;
(I) assess and determine roadwork availabilityuntil the year 2000 using realistic work programs of GHA, DFR, DUR and other agencies;
(m) determinethe local constructionindustry capacity needed to meet the roa.dworkavailability determined under O) above;
(n) recommendmeasures and actions to be taken by GOG and client agenciesto support the local constructionindustry to carry out the workloaddetermined under Q)above in terms of training assistance;applicable bidding documents; timely paymentof monthlycertificates; mobilizationadvances etc.;
(o) recommendmeasures to be taken in providing provisionsto meet contractors' needs for foreign exchangefor purchase of equipment, spare parts, materials & supplies; and
(p) carry out an assessmentof the role and contributionof the local construction industryto the macro-economicperformance of the country includingpossible negative impacts on the economicdevelopment of the country in the event that the industry's capacity for developmentdoes not materialize.
C. Staff Composition and Duration of Assignment
7. The consultantservices under these TOR are estimated to require about 18 man- months. Proposed compositionand duration of assigmnentsof consultant's key personnel is given below. However, the consultantis free to propose his own staff compositionand duration of assignmentsto produce sound recommendationsmeeting the stated objectives.
(a) ConstructionIndustry DevelopmentSpecialist with Civil Engineeringdegree and a minimum experienceof twenty (20) years in civil engineeringwork of which a minimum of about ten (10) years experience have been in private constructionindustry; for about eight (9) months.
(b) Financial Specialistwith a degree in Accounting/Financewith a minimum experienceof fifteen (15) years of which at least 8 years were spent working as Finance Specialist in the private constructionindustry; for about five (6) months; and
(c) Macro-EconomicDevelopment Planner with a degree in Economicsand an experience of at least fifteen (15) years of which at least seven (7) years - 108 -
Annex 4-8 Page 4 of 4
experiencehave been in national macro-economicplanning; for about 3 months.
D. Timing of Reporting Requirements
8. The consultantshall prepare and submit the followingreports within the submission time specified for each:
(a) ten (10) copies of InceptionReport within three (3) weeks of start of assignmentin Ghana. Governmentand the Bank will communicatetheir commentson the InceptionReport within fifteen (15) days of receipt of the InceptionReport;
(b) ten (10) copies of Interim Report covering Consultant's findings of problems and constraintsof the local constructionindustry and plan of action in completingthe draft final report within five (5) months of start of assignment in Ghana. Governmentand the Bank will communicatetheir commentsto the Consultantwithin fifteen (15) days of receipt of the Draft Interim Report;
(c) ten (10) copies of Draft Final Report within seven months of start of assignmentin Ghana. Governmentand Bank will communicateto the consultanttheir commentswithin fifteen (15) days of receipt of the Draft Final Report; and
(d) thirty (30) copies of Final Report within eight (8) monthsof start of assignmentin Ghana.
AP4IN November 1991
(ConatTOR.NPR) - 109 - Annex 4-9 Page 1 of 2
REPUBLIC OF GHANA
NATIONAL FEEDER ROADS REHABILITATION AND MAINTENANCE PROJECT
Rural Mobility and Environment
A. Bicycle Trailers and Single-WheelFarm Vehicles
1. The Bank has already provided funds to improve rural mobility under TRP-1 and TRP-2. The Northern Region Pilot Project under TRP-2 is concerned with the demonstrationand introductionof the followingtwo intermediatemeans of transport (IMT) which are new to Ghana:
a single-wheel,hand propelled small farm vehicle (SFV) for use by rural households as a more efficient alternativeto head-loadingin order to meet local transport needs, particularlybetween the farm and village; and
a two-wheel cycle trailer to increasethe load carrying capacity of bicycles, for use by rural households and for goods delivery and collectionin small towns.
2. The pilot project focuses primarily on introducingbicycle trailers and farm vehicles. The former carry about 120 kg and can be hooked to a bicycle or pushed and pulled separately. The latter has one wheel at the center, so that the weight is on the wheel and not the arms which push it, and are suitable as carts on bush tracks. So far about 600 vehicle units were manufacturedand distributedto user groups in villages, mainly women. The design has been modifiedbased on feed back of their use. Rural women were the main beneficiaries,since head-porterageis generallydone by them. Receptionof these vehicles mainly the trailers, has been enthusiastic.
3. The bicycle-trailers,and single-wheelfarm vehicles are being tested under a pilot program carried out in the northern region where bicycles are popular, but not many own them because the villagers lack the funds to invest. The newly introducedbicycle- trailers, and single-wheelfarm vehicles are now readily accepted as a substitutefor head- porterage. Surveys show that women would like to own them but cannot raise the funds to buy them. An NGO recently bought some bicycles for distributionto women's groups in some villages, and women have avidly taken to using the bicycles and demonstrationtrailers. There has been no cultural resistance to the change.
4. The objective under the proposed NFRRMP is to provide seed money (from bilateral financing)to reduce the problem of affordability. DFR will, through NGOs and cooperatives,operate and monitor the use of the seed money as a revolving fund for purchase of bicycles and material for manufacturingsingle and two-wheeledtrailers for sale on credit basis to rural households in regions where the motor vehicles are usable and accepted by the households. The initial proposal is to engage presently available five private blacksmithswho previously were involved in assemblingbicycles purchased by DFR and in manufacturingthe single and two-wheeltrailers for which materials were purchased and provided by DFR. About 40 sets of cycles, trailers and farm vehicles will be supplied in two tranches to each of 100 NGOs - 110 - Annex 4-2 Page 2 of 2 and cooperativesfor sale on credit basis to households in the Brong-Ahafoand Northern Regions at a total cost of US$ 1.5 million. Potential blacksmithswill be entrusted to stock needed spare parts while the repair and maintenanceof the non-motorvehicles will be done by rural households.
5. The introductionof the non-motorvehicles will be the appropriate IMT from which rural communitieswill benefit by reducing considerableamounts of time which rural communitynow spend on head-porteragefor the transport of farm products from farms to households and/or to nearby market places. This will allow farmers to allocate more time for farming which will in turn increase production. Moreover, the use of the non-motor vehicles will reduce the physical strain and health problems arising from head-porterage.
B. Planting of Fruit Trees
6. The project will also provide funds for planting fruit trees along feeder roads which will be rehabilitatedthrough labor-basedcontractors. The fruit trees will be planted at an appropriatedistance from the road centerlinethus avoiding the need to cut the trees as and when the roads are widened. The fruit trees will have a lasting benefit by providing food/cash supplementsand environmentalimprovements. NGOs and cooperativeswill be entrusted with the nursing, planting and after care of the fruit trees at about US$2.0 fee per tree for the operation and managementof this sub-component.
C. Beneficiaries
7. The rural communityas a whole will be the beneficiaryof the rural mobility and environmentcomponent under the NFRRMP and the TRP projects. Women who usually do head-porterageof farm products will significantlybenefit from the non-motorvehicles as well as by earning cash incomedue to the opening of rural access roads. The componentwill also have a major contributionin creating awarenessto be technologicallycreative to tackle constraints in the effort to generate incomeand improvingtheir living standard. The componentwill also create jobs for private entrepreneurssuch as the blacksmithswho will be involved in the assemblyof the bicycles; the manufacturingthe trailers; and the supply of spare parts.
AF4IN November 1991
(RuMobEnv.NFR) - 111 -
Annex 4-10 Page 1 of 6
REPUBLIC OF GHANA
NATIONAL FEEDER ROADS REHABILITATION AND MAINTENANCE PROJECT
Institutional Arrangements for District Routine Maintenance
A. Introduction
1. Districts have been proposed by tlhe Governmentas the agency that should be responsible, with DFR assistance, for routine feeder road maintenance. This is primarily to insure that NFRRMP's activitieswill meet the letter and spirit of GOG's decentralizationpolicy. It is also based on the belief that districts will tend to perform better than DFR could in reflecting local knowledgeof road conditionsand local preferencesre maintenancepriorities in their maintenance decision-making.
2. All forms of "force account"routine maintenancehave been eliminated from considerationbecause experience with force account routine maintenancehas been almost universally disappointingthroughout the developingworld. Force account routine maintenancewas discontinued by Ghana Highways Authoritybecause of unsatisfactoryresults. Given the relatively low public sector wages in Ghana, further experimentationseems pointless.
3. Among the alternativesthat remain, four appear to have some potential in rural Ghana: (1) combined rehabilitationand maintenancecontracts, (2) single-mancontractors, (3) labor- based contractorsand (4) contracting with intermediaryorganizations.
B. CombinedRehabilitation and MaintenanceContracts
4. This phrase refers to a situationin which contractorsmight bid simultaneouslyon a contract from DFR to rehabilitate a road and on a contract from a district to maintain that same road for -n extendedperiod (e.g. 3 years) following rehabilitation. The bids must be evaluated on the basis of the best "package" for rehabilitationand maintenance. All bidders must bid on both contracts and accept both if they win. Combiningrehabilitation and maintenanceresponsibilities offers one very significant advantage. It gives the contractor added incentive to perform rehabilitationwork well, because shoddy rehabilitationwork will increasehis/her maintenancecosts.
5. In practice, there are likely to be a number of difficulties in combiningcontracts for rehabilitationand maintenance. First, DFR is likely to prefer the contractor with the best or lowest rehabilitationbid, while the district might prefer the contractor with the best or lowest maintenance bid. Proceduresfor resolving this situation, should it arise, would have to be worked out. Secondly, contractorsare unlikely to accept a fixed price, long term maintenancecontract if they believe that abuse of the road (e.g. frequent overloadedtrucks) might result in significantdamage to the road and an increase in their maintenancecosts. It is likely that the contractor would want guaranteesthat use would be regulated, either by himself or by the district. Third, it may be that contractorswould be - 112 -
Annex 4-10 Page 2 of 6
uninterested in making a long term commitmentto routine maintenance,which is "small potatoes" comparedto other rehabilitationcontracts. This difficultymight be lessened by adding to the scope of the maintenanceside of the contract by includingroutine, recurrent and even periodic maintenance.
C. Single-manContractors
6. The single-mancontractor system of routine maintenanceinvolves a contract between an individualand the district government,in which the individualagrees to perform all routine maintenanceactivities to specifiedstandards for a predeterminedpayment on a fixed length of road using hand tools provided by the government. The single-mancontractor (also known as the "length- man") system is widely used in developingcountries and has produced excellentresults when used in relatively well populatedareas in which each single-manlives along side or close to the stretch of road s/he maintains. Living in close proximityto the road means that the single-manhas easy access to the work and can devote "spare" momentsto the work when that is an advantage. Close proximity also strengthens the tendencyfor single-mento be "known by the quality of their work." Superior performancemay bring a small measure of status and recognitionfrom local people, while it is easy to identifythe "culprit" if performanceis poor. Single-mancontractors are normally local farmers or laborers who are underemployed. Their work as "single-men"varies seasonally,but usually is calculated to average about twelve working days per month in order to leave time for their other work.
7. One of the keys to a successfulsingle-man system is the quality of the overseers (in this case probably DFR's road foremen, posted to the districts involved), who must inspect the roads at regular (initiallyfrequent) intervals, issue and account for tools, keep pay records, and pay the single-mancontractors. Single-mancontractor systems require timely payment of the contractorsand close monitoringof results. Irregular paymentquickly leads to deterioration in the quality of work, just as regular payment for shoddy work also leads to rapid deterioration. Payment must be contingenton satisfactoryperformance and only satisfactoryperformance. Overseers must be subject to supervision(in this case probably the DFR Area Engineer and a responsibleofficial from the district government). Supervisorsmust inspect the roads at regular intervals (perhapsonce a month), spot check wage payments and arbitrate any disputes which may have occurred between overseers and contractors.
8. NFRRMP should not simply adopt the GHA single-mansystem without first considering its suitabilityfor feeder roads. Descriptionsof GHA's system seem to suggest that it may be "force account conductedby another means." Also, GHA's single-menare providing routine maintenancefor mostly asphalt surfaced roads, while NFRRMP contemplatesthe maintenanceof gravel surfaced roads. Finally, a quick, "roadsideinspection" of GHA's single-mansystem suggests that its results are far from satisfactory. One wonders whether there is actual positive impact on the useful life of the road from the "maintenance"performed.
D. Labor-IntensiveContractors
9. The labor-based contractor systemof routine maintenancewould involve a contract between the district governmentand a labor based contractor for performanceof all routine maintenanceactivities over a fixed length of road for a fixed time period. Discussionof a labor - 113 -
Annex 4-10 Page 3 of 6
based contractor system has to be a bit more hypotheticalthan the discussionof single-mansystems, because there isn't nearly as much experiencewith maintenanceby contractors(particularly labor based contractors)as there is with single-man(or length-man)systems in developingcountries.
10. Use of labor-basedcontractors for maintenancewould have two significant advantages: (1) the labor based contractor could provide a flexible and diversified maintenancesystem and (2) the labor based contractorhas an incentive to innovatemore efficient and effective ways of organizing the work. The labor based contractorowns some equipmentand has certain technical knowledgewhich might be useful in insuring quality maintenance. The labor based contractor would be free to deploy and redeploy laborers, to choose to use his equipmentor hire more laborers and to perform maintenanceworks during those periods in which it is economicallyand technicallymost feasible rather than having the timing of maintenanceactivities driven by agriculturalseasons. If he felt that it would be efficient, a labor based contractor might simply set up his/her own single-man system of maintenance. In this case, he would assume the role of the overseer discussed with reference to the single-mansystem. As an owner, the labor based contractor has the right to appropriateall residual funds as profit. This right creates a powerful a priori incentive for the labor based contractor to make rational use of resources and to innovatemore efficient ways of organizing the work.
11. The biggest drawbackto a labor based contractor system of routine maintenancein Ghana may be the small number of such contractors. In theory, some of the savings which a contractor may realize through innovationwill be captured by the district when the maintenance contract is re-bid. However, this theoreticalpossibility depends on the existenceof genuine competition, which is very difficult to insure in the absence of a large number of potential bidders. Since there are only a small number of such contractors in all of Ghana, it would appear unlikely that several of them would be availableto bid in a particular district. DFR should do all that it can to increase the number of labor based contractors. Further easing of the constraint caused by the relatively small number of labor based contractors could be soughtby using the "pool" of labor based contractors that have been trained, but not yet equipped. There are currentlytwenty-five equipped contractors of this type. NFRRMP and the districts may wish to consider making all contractors, equipmentbased and labor based, eligible to bid on maintenancecontracts.
12. DFR and NFRRMP may wish to encouragethe use of labor based contractors for routine maintenancesimply to increase the opportunitiesavailable to labor based contractors. It would add some diversity to the work opportunitiesthat labor based contractorshave and it might help smooth out seasonal fluctuationsin their work load and cash flow.
13. If one can assume genuine competitivebidding, the labor based contractorsystem might be the simplestsystem for districts and DFR to administer. The burdens of organizationof the actual maintenancework, daily supervision(if that is required), payment to workers, provisionof tools and the accountingthat must accompanythese activitiesare acceptedby the contractor.
E. Contractingwith IntermediaryOrganizations
14. The term "intermediaryorganizations" is very nebulous. Its use in this context is for lack of a better term. The term is intendedto emphasizethat this organizationmay have been formed - 114 -
Annex 4-10 Page 4 of 6 to represent and promote the interests of its members. Frequently, the organizationhas no "natural" or obvious connectionto feeder roads. Poverty oriented non-governmentalorganizations (NGOs) are the most conmmondeveloping country example of intermediaryorganizations that sometimescontract for road maintenance. A second "class" of intermediaryorganizations might be broadly labeled as "user groups," where the term denotes groups whose members have an identifiableeconomic interest in the conditionof the road(s) in question. For example, such groups might consist of the owners of commercialtransport services or the producers of products whose value is highly sensitive to transport costs or timeliness. The basic distinctionbetween the two types of intermediarygroups is the presence or absence of an economicinterest in the road.
15. There is a way in which NGOs and user groups may be alike. Both kinds of intermediarygroups may be and frequentlyare organized as "nonprofits." This does not mean that the group cannot profit from its activities,but it does mean that profits are not directly and automaticallyappropriable by individuals,whether they be group members or employees. This contrasts with the situation in a for profit organization, e.g. a labor based contractor, in which the owner can be very certain in advanceof undertakingthe work that s/he will immediatelyand automaticallybenefit from efficient work. The implicationis that members and employeesof non- profits are likely to have a weaker motivationto innovatemore efficient ways of working than owners of for profit firms.
16. Poverty oriented NGOs can be organizedas for profit firms, but this type of organizationis relatively rare, especially in road maintenance--- for apparentlygood reason if one looks at the incentives involved. Poor persons are relativelyrisk averse. They will usually prefer the security and frequent, regular payment of a wage over dheuncertainty and infrequentpayment of a profit. Theoretically, poverty oriented NGOs might orgarnizeas for profit firms, with all employees receiving a more or less certain wage and a less certain profit. However, the use of labor intensive technologiesand the costs of contracting decrease the likelihoodthat profits will serve as a significant motivator of individualworkers in this context. Labor intens.vetechnologies and contracting costs tend to increasethe number of workers involved per contract. 'Therefore,the individualworker has a very weak incentive to work hard or efficiently;since any profits due to these special efforts will be shared with a very large number of other workers. Conversely. s/ht may have an incentiveto shirk because large groups make shirking more difficult to detect and the effect of shirking on his/her total income will be negligible.
17. Relative to poverty oriented NGOs, user groups may have a number of advantagesin undertakingfeeder road maintenance. These advantagesarise out of their relatively explicit economic interest in roads. Because user groups are organized around these interests, they tend to be more aware of their interests and more able to calculatethe extent of their interests. Improving road maintenancemay or may not be a part of the user group's agenda. This depends, in part, on how open to influence responsibleofficials have been in the past.
18. Users groups are the only potential maintainers of roads who might contribute to the costs of maintenance. Where the benefits of maintenanceare large relative to the costs, users may fund and organize maintenancewith little referenceto the responsiblegovernment agency. There are instances of sustained maintenanceefforts of this type in developingcountries. One even senses a bit of this in Ghana with respect to log haulers and bus operators. District officials report that they are 115 -
An-nex4-i10 Page 5 of 6 frequently approachedby individualusers who are willingto contributeto maintenanceof a particular road that they use. Granted, these users are not seeking routine maintenance. They rarely approach officials until the road is badly deteriorated.
19. Membersof road related users groups tend to be in a position to accept more risk than members of poverty oriented NGOs. They could accept the risk of organizing a for profit group, but they have no specificneed for profits or wages from the users group. They have other sources of income. Becausethey are not seekingjobs, they may be more objective in choosing between labor intensiveand capital intensivetechnologies for maintenance.
20. User group members who, based on their economic interest in road services, assume part or all of the costs of maintenancehave a set of incentivesthat are very different than members of a poverty oriented NGO. Whereas NGO members want to engage in production of road maintenance, that is they want to clean ditches, cut the grass, etc; user group members have an incentiveto have a say in the decision making about how much maintenanceshould be done, how it should be organized, who should do it, etc. They would do this in order to protect their investmentand to control the costs to themselves. These decision making activitiesare referred to by economistsas provision activities. The distinction is significantbecause normallyone thinks of governmentsas the providers of public goods such as roads.
F. Summary
21. In summary, user groups have superior incentivesto maintainparticular feeder roads in which they have an economic interest. They may actually contributeto the costs of maintenance, but they are likely to want, in retum, to influencedecision making about maintenance.
22. Furtl.er investigationof existingand potential user groups should be undertaken. The followingpotential and actual user groups were identified:
(a) The various road transport unions, includingGhana Private Road Transport Union (GPRTU), Ghana CooperativeTransport Union (GCTU) and Ghana Progressive Transport Union (GPTU). GPRTU is by far the largest in terms of membershipand geographic coverage. GPRTU collects and remits to central governmentcertain revenues (taxes and/or fees?) at transport terminals. It is believed that the other two associationsalso do this at the terminals that they "control."
(b) Local and/or national associationsof market women. Whether such associationsexist is not known.
(c) Associationsof producers and/or transportersof products whose value is highly sensitive to transport costs, quality or timeliness. Examplesof such groups might include producersand/or transporters of logs, fresh seafood, pineapples,fresh tomatoes, etc. Whether such associationsexist is not known.
(d) Log hauling is an importanteconomic activity with substantialimpact on the condition of feeder roads in some Digricts. Log haulers are involved in both the "demand" and - 116 -
Annex4-1O Page6 of 6
"supply"sides of feederroad maintenance.They contributeto demandfor road maintenancebecause they are amongthe heaviestvehicles to use the road and heavy vehiclestend to do moredamage to the roadsurface per trip than light vehicles. They contributeto the supplyof roadmaintenance by providingpart of the funding for the limited,sporadic "maintenance" which currently occurs. 23. GPRTUand its rivals shouldalso be investigatedfurther. One important characteristicto be determinedis the degreeto whichlocal "chapters"have autonomyto undertake locallyinitiated and controlledactivities. 24. Tlere may be othertypes of intermediaryorganizations potentially interested in routinefeeder road maintenance. For example,the traditionalstructures of Ghanaiansocietv, tribes, may be worthinvestigating. It is difficultin this brief reportto coverthe topicexhaustively. 25. The precedingsections serve as an exampleof the kindof analysisthat mightbe appliedto additionalintermediary groups, to contractors,to the districtgovernments and to DFR itselfduring the early years of NFRRMP. Therewill be a needfor muchanalysis, experimentation and implementationsupport if the projectis to succeedin achievingits objectiveof sustainedfeeder road maintenance.
APUN November1991
(RoutMain.NFR) - l117 -
Annlex4-11 Page 1 of 3
REPUBLICOF GH? NA
NATIONALFEEDER ROAD$ REHABILITATION AND MAINTENANCE PROJECT
District lResourceMobilization Potential
1. District Assembliesobtain revenue from a variety of souccesincluding, but not limited to
(a) Rate collections, based on the value of property and possessions;
(b) "Specialrates" which can be collectedfrom persons over 18, resident district-wideor in differentiatedsub-districts for specific purposes;
(c) Fees on various trading, marketingand productiveenterprises;
(d) Licenses for various business activitiessuch as hawking, hotels, restaurants, liquor sales, taxi cabs and lorry parks; and
(e) Miscellaneouscollections such as court fees, fines and town hall receipts.
2. The major source of locally generatedrevenues is rates collectedon property and possessions. District Assembliesset property rates and fees within national guidelines. Fees, licenses and miscellaneouslocal collectionsaccount for very little and are directly dependanton the size and economiccondition of the district. Income taxes are neither collectedby, nor allocatedto, local governments.
3. There is wide variation among districts in revenue generating capacity. Districts in which major economicactivities are located, e.g. mines or timber harvesting operations, generate significantlymore incomefrom business registrationfees than do districts in poorer regions. Districts in the northern areas of Ghana arc especiallypoor.
4. Some local governmentrevenues defined in PNDC Law 207 are collectedby the national government'sInternal Revenue Service (IRS) because taxation and administrationof collectionare more efficientlyorganized at the national level. These are known as "ceded" funds; since IRS turns revenues over to the Ministryof Local Government, which then disburses funds to districts on the basis of a revenue sharing formula in order to balance disparitiesbetween districts.
5. The revenue sharing formula employsfairly coarse indicators which result in disbursementsbased on:
- A be amount provided to all districts; - 118 -
Annex 4-11 Page 2 of 3
- A populationfactor includingrelative numbers and density; and
- A dQvelopmentstatus factor based on rough indices of poverty levels, relative access to developmentresources, level of infrastructuredevelopment, etc.
6. A rough estimate of funds collectedfrom and redistributedto all 110 districts under the revenue sharing system is:
1989 C 230 million (US$658,000) Note: several estimateswere given for this year, the highest being C 300 million. The estimate given by MLG headquartershas been used here.
1990 C 260 million (US$743,000)
1991 C 1 billion (US$2,858,000) The increaseover 1989 and 1990 figures is due to the addition of billboard advertisingtax and transport owners tax to the ceded \indspool.
The dramatic increase in 1991 ceded revenues is a significant indicatorof the central govermnent's commitmentto increasingdistrict revenues.
7. Additionalevidence of the natior al government'scommit-ment to increasinglocal governmentrevenues is provided by the followingfacts:
- A national effort to improve collecti ' of local governmentrevenues has been organized by the National MobilizationProgram in which local branches of the Committeefor the Defense of the Revolutionare organizingvillage trade associations (e.g. tailors, hair dressers, etc.). The local heads of these associationsare collecting the relevant taxes, fees and license charges from the membershipand being paid a commissionto do so.
As of 1991, agenciesof the nationalgovernment are required to pay property rates to the districts in which properties are located. Previously, governmentagencies were exempt.
- The intention to funnel most of the resourcespresently controlled by the decentralized departmentsto the districts remains intact.
8. Some district governmentshave set up local enterprises (e.g. bakeries, concrete block manufacturingand others) to be operated by the district governmenton a "for profit" basis. This should be discouraged due to the consistentlypoor performanceof such enterprises in the past and the chilling effect of such enterprises on private entrepreneurs.
9. Three studies concerningdistrict finances have recently been initiated. Topics of the - 119 -
Annex 4-11 Page 3 of 3
studies are (1) revenue sharing, specificallyincluding the possibilityof revising the present formula for calculatingdistrict shares; (2) fiscal decentralization,focusing on acceptablestandards for accounting and auditing at the district level; and (3) the property rate (tax) structure, focusingon inconsistenciesbetween LegislativeInstrument 1049 and Basic Law 42.
AF4IN November 1991
(ReMobPot.NFR) REPUBLICOF BHANA
National Feeder RoadsRehabilitation and MaintenanceProject
CHECKFORPULAS SummaryProject Costs
Local Taxes Foreign Total Local Taxes Foreign Total A.REHABILITATIONAND MAINTENANCE PROGRAM (US$million) (CedSmi?tion)
1. Rehabilitation by Contract 21.95 2.98 17.58 42.50 8,231 1,116 6,591 15,938 2. Regravellingby Contract 9.83 1.50 10.05 21.38 3,687 561 3,767 8,016 3. Spot Improvement/Culvertsby Contract 3.60 0.35 1.05 5.00 1,350 131 394 1,875 4. Maintenance& UorkshopEquip., Tools & Spares 0.30 0.20 3.54 4.04 112 76 1,327 1,515 5. Designand Supervision 1.27 0.08 1.36 2.71 478 30 508 1,017 Subtotal 36.96 5.10 33.57 75.63 13,858 1,914 12,587 28,360 S. INSTITUTIONALSUPPORT PROGRAM
1. ManagementLine Positions 0.25 0.02 0.98 1.24 93 6 366 465 2. TechnicalLine Positions 0.25 0.00 1.43 1.68 95 0 536 630 3. UnitedNations Volunteers (UNV) Support 0.08 0.01 0.09 0.18 32 2 34 68 4. Studies 0.25 0.00 0.61 0.86 94 1 228 324 5. Training 0.30 0.03 0.97 1.29 113 10 362 485 6. Local ConstructionIndustry Support 0.50 0.23 4.07 4.79 186 84 1,525 1,796 7. Rural Mobilityand Environment 0.77 0.10 1.11 1.98 289 37 417 743 8. DFR DecentralizationSupport 0.76 0.05 0.56 1.36 286 17 209 512
Subtotal 3.16 0.42 9.80 13.39 1,187 157 3,677 5,021 TotalProject Base Cost 40.12 5.52 43.37 89.02 15,045 2,072 16,264 33,381 PhysicalContingencies 3.79 0.52 3.46 7.77 1,421 196 1,297 2,913 PriceContingencies 5.08 0.70 3.47 9.25 3,831 525 3,211 7,567 TotalProject Cost 48.99 6.74 50.30 106.03 20,297 2,793 20,771 43,861
0I 1b ~ik R@8MC OF GAN
TOTAL. YEAR2: 1A14-DEC1992 YEAR 2: JAN-DEC 1993 YEAR 3: JAN-DBt 1994 YEAR 4: )AN-DEC 29M YEARS5:JAN-DEC 199 (38FOM109 LOC TAX FOR TOT LOC TAX FOR TOT LJOC TAX FOR TO`r LOC TAX FOR TOTl LOC TAX FOR TOr LJOC TAX FOR TOTr
A. FEEER ROADS REIInJAULTA1 N*AND MADIT8ANCE PROGRAM
.. RibmM.48. byCusad a. Cqvku2&ow Caiaot 4I.RXImk4,9 2,2 1 5,27 32.38 2,24 341 2,291 4,87 3.738 30 3.819 8,123 4.483 683 4,583 9.75D 3.738 569 3,829 8.125 748 114 764 2,623 b. Lmbhcw~bamloCgs4tAO0=b* 7,96 780 2,323 A0.X) 2.40 203 343 2,38 1.730 17$ 373 2,MW 2.IOD 210 69 3.OM3 1.738 175 575 2,30 350 33 115 596 RSaOa Rebb Udwa by Caom 21,938 2,97 I7?37 42.38 3.293 446 2,636 6.37$ 3.438 744 4.394 10,625 6.583 893 S,273 22,750 5,488 744 4394 10,825 1.098 14 879 2,125
IL C92aa2-bcmEw CbduaabE2MM3 9,433 1.496 10,046 21,373 983 153 2003 ,238 1,367 299 2,00 4,27 2,930 449 3,024 6,413 2,950 449 3,014 0,415 083 238 2,003 2,38 Sub 28Rq tCuinb o8a 9,833 1.496 10.046 21.375 33 238 1.96 2.23 1,967 299 2.009 4.275 2.938 449 3.014 6,413 2,93 449 3,014 6.413 933 238 2.965 2,138 So 3. bopmoxam0hiona byCo *b &. .Lhar4~~molCaamast7Ub0 3,30 330 2,050 3.0010 36D 35 203 SOD 720 38 210 2.00W 2,08 205 32$ 2.30 2,0801 203 315 1.500 396 35 S-W 205 SOD 1S i.*wA3dvAW. tCcd* 3,810 350 1,050 SAW0 36D 33 203 930 72D 38 210 2.0W0 2.080 10$ 32$ 2." 2,08 205 325 SAW0 3D 35 S0$ SW0- 4. u.M mm Wa .p Equip,Taah & Spam. s, Rcuaum akommSOO= 43 43 820 gm 0 0 0 0 23 23 405 438 23 23 405 438 0 0 0 0 0 0 0 0 b. 59ARVIW MUL AW WOWYCVO3S s0 30 2.000 0 0 0 0 23 23 430 30 23 23 450 5S0 0 0 0 0 0 0 0 0 c. R m c2mHumbools los2s03nmm 2I LU3D 3 26 4 43 15 26 4 43 75 26 4 43 75 26 4 45 73 0 0 0 0 &.Wc.bepEquigamas Toob,Sp- P. 30 30 340 600 0 0 a 0 Is I1$ 238 XC is 1$ 238 3W 0 0 0 0 0 0 0 0 *. VoMbu frDER a6 A 720 80 20 20 360 410 20 2D 360 400 0 0 0 0 0 0 0 0 0 0 0 0 t. M3bil As" Is Is 238 XC 0 0 0 0 X b~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Oa 8 235 238 8 8 235 238 0 0 0 0 0 0 0 0 g. OS3m-Eqdpl a22 4 56 38 0 0 0 0 $ 2 28 33 5 2 38 35 0 a 0 0 0 0 0 0 ILTk ini;qu2pmw 2AWd 4 4 63 38 0 0 0 0 2 2 32 35 2 2 32 33 0 0 0 0 0 0 0 0 8.hoa2E.AwkTcoa ASpom. 299 292 3.39 4,W 46 24 405 473 123 97 1,725 2.943 103 77 2.363 t.543 26 4 43 73 0 0 0 0 1. R.gdamisim S.re o_(tw3 lm1 593 3X 6312 ,262 297 19 326 631 297 29 316 6312 0 0 0 0 0 0 0 0 0 0 0 b. Wmb SWM.vlinCWf*A230mhz0 682 43 723 1.449 102 7 109 217 178 22 l82 362 238 22 182 362 238 it l82 362 68 4 72 243 SdW*W3mlgmad Suinvislo 1.274 8t 2.33 2,711 399 25 424 84 467 30 497 993 238 22 182 362 238 22 282 362 St 4 72 243
BASEIr ROADS RENA MAlNT. MROO.COSl 36,956 3,035 33,36 73,626 .082 68 4,57 10,336 8,764 I," 8,83 28,838 20,88 1,34 10.147 22,538 9.714 1.312 7.949 28,975 2,509 338 2,062 4,907 PWYSCAL CONTD e bCIES 3,#1D 5S2 3 :22i7.292 468 63 423 949 830 122 834 2,783 1,07 2152 997 2,221 954 13 577 1.861 244 33 199 476 PRICTCONTIN4GENIES 4,728 652 2,875 8,242 347 47 140 534 894 227 433 1,434 1,438 203 8m 2,748 I.S 24 2,039 2.I 9 434 61 392 9072 TOTALFSEDER ROADS RDL & MAWN. PROG. COSr 43,242 6,2$9 39.6S9 92.2160 3,896 79 3,230 11,819 10,488 1.488 2%0,2022,07 123.338 I.89 21191 27,269 22,25 1,637 9.195 23.383 3.1207 432 2.62 6,291
021 WTS4t 1. awfi3ITWALsu3JwO FtOGRAM
I. -mpUN 3 ad C C M04k=P SSpdKb 0i NW g 0 5t6 639 9 0 St do 23 0 1 0 ISO 23 0 I3 330 23 0 133 133 14 0 7? g0 bUO3Ast. I T 3pc.(3O1- .0 S50 0 331 330 0 0 0 0 20 0 132 132 2) 0 132 132 to a 56 66 0 0 0 0 O..*Mbh433I (hW56mS o3 39 6 66 It0 4 I 7 II 30t I 37 20 30 I 17 20 30 I 37 20 6 3 t0 3? &06wh wjmi by M au 20 30 In 239 I 3 12 20 is 3 20 so Is 3 20 SD i3 3 20 so It 2 33 20 MAWI M ULM PO 268 If 977 3,20 20 2 30 93 0p 4 20 360 0 4 236 360 60 4 MD0 294 30 2 30 3.37 LT*dw opa L M.MIM" pC§WM b NN03M 0 573 672 0 0 0 a so 0 20 336 SD 0 236 336 0 0 0 0 0 0 a a un iat b cm 30 0 206 336 0 0 0 0 20 0 143 363 25 0 343 163 0 o a o 0 0 0 a C.Ro 1bft 3 pewbp4C wh S 0 216 336 0 0 0 0 20 0 143 163 20 0 l4a 163 0 0 a a 0 0 0 0 &dN"4MAw1yUMW in 0 286 336 a 0 0 0 20 0 143 log 20 0 I43 M6 0 0 0 a a a 0 0 SAWAITS"WLk*PhOW252 03,.433,1630 0 0 0 0 126 0 734 30 326 0 734 40 0 0 0 0 0 0 0 0
mR.M &Ih 4u" me5I 5 go I 0 0 0 0 0 42 3 45 90 42 3 45 so 0 0 0 0 0 0 a 0 aftu..Vd(Uism"Ma 9 u Is 5 go lo0 0 0 0 0 42 3 45 go 42 3 45 90 0 0 0 a a 0 0 0
an. &Uhada o3wtt11 n)oM" 72 0 216 263 72 0 216 3M 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 a
kFsmos Raw anM 0 m.giinmQ0s 320 0 30 410 0 0 0 0 320 0 360 410 0 0 0 0 0 0 0 0 0 0 0 0 c- sodeommmbhm-sm mob5 3 33 95 9 0 5 14 I5 I a 24 35 I a 24 i5 I 3 24 6 0 3 30 SOWdShdbo ~~~~2013 63 3so 33 0 233 302 135 3 36B 304 35 I 3 24 3s I a 24 4 0 3 to S.Tubb " mnamodTabbs 1~~9 13 63 60 0 0 0 0 6 4 132 392 6 4 332 192 6 4 132 192 2 3 63 64 b. t Lm em 4wre"Tubbe3 Z236d 14 42 282 333 7 21 343 113 7 21 343 0 0 0 0 0 0 0 0 0 0 0 0 e..lhTm Tuhbs T.A, CH5 6 0 336 372 14 0 79 93 14 0 79 93 14 0 19 93 34 0 79 93 0 0 0 0 MWATob 23m 27 967 ,294 I2V 7 360 234 133 II1 203 426 20 4 261 335 20 4 261 285 2 3 63 64I 6 d mwd ,4 W I.- a.Lmdam.'- Awme(I33 72 0 216 38 12 0 216 381 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 a N)i k. m &okCmt.hhsViqiini 420 25 so 300 0 0 0 0 339 3 IS 330 120 3 35 33D 138 3 Is 330 43 3 5 so0N . WI Ldin.U.iCul dmm39Sipt 0 20D 3.101 4,6001 0 0 0 0 0 MD 3,36014,00 0 0 0 0 0 0 0 a 0 0 0 0 MWAOd AdCInMCdl3rfSqIp. 49? 225 4,06 4.73 72 0 216 38 I3 MB 3,335 4.350 320 3 I5 130 339 a I5 330 43 3 S 91 7. Ro uf =I Emk, . a. bm=Wbu M u(opmn 310 74 1.036 1.480 56 II1 135 222 93 39 259 320 III 22 331 444 93 39 259 320 39 4 52 74 kTmrld 233 33 20 23 32 2 4 33 53 3 6 63 64 4 3 75 53 3 6 63 33 I 3 33 C. S NMiOadWSewmapo 3n 33 30 250 28 2 3 38 47 3 33 651 16 4 is 75 47 3 33 63 9 I 3 33 SAWARMd'sI-)u73 99 3,333 3.910) 116 IS 3167 297 393 20 213 495 231 30 333 594 393 20 213 493 39 5 56 99 L.MR DmMvd Vw e.liilmaAmil(2=f) 29 0 363 192 7 0 43 43 7 0 41 43 7 0 41 43 7 0 43 43 0 0 0 a kDwIaff09s2m4n)2" 333 20 260 672 96 5 67 l63 96 5 67 363 96 S 67 363 96 5 67 163 0 0 0 0 &t. uIinWmtuIDW m ad k*FtrA 350 25 125 SW) a 6 31 120 so 6 33 320 a3 6 31 320 63 6 31 325 0 0 0 0 a0FfDM mmab&Wm iyw3 743 45 57 3.364 190 I33 139 341 190 33 339 341 390 33 339 341 390 331 139 341 0 0 0 0 LMEgI3ummITMIAL31SU9ORT FROG. COSTr 3,365 420 9,104 33,33 MS 35 933 3.5 3,035 262 5,928 ?,205 323 60 3.303 2,633 du4 52 932 3,53 U39 II1 220 359 1IIYUCALCOKTU~~~~~~~IO8 3ZI 20 207 417 42 3 33 73 6 5 64 132 55 5 67 120 52 5 63 Ila 3 3 32 23 M3CUHI3KM 4M 365 46 so9 I,lo9 41 2 27 09 303 20 263 394 305 3 341 254 97 3 3in zz 23 2 42 65 TOrAL M MIRNOAL UflOT PROG. COST 3,73 435 30.40 14,675 41 972 1.701 3,179 29 6,210 7,731 912 73 2,030 3,065 7S3 65 3,335 1.934 343 34 233 445
LMEFW0 mIcOS 60.121 5,524403,30 319,0155,63 715 5433 33,33 9,779 l,3K2 14.762 26,04433,209 1,594 11.93020,203 10.316 3,34 3,33 30,56 2,62 349 2,29 5.256 F83TmaLa3ITlGmom 3.7183 522 3,456 7,763 530 09 448 3,07 393 126 397 1,916 1,327 358 1.064 2,348 1.006 1335 8 1.979 202 34 233 496
? 03KTU61ENCM 5.M3 G97 3,472 9.252 389 49 367 603 995 152 31 3,843 1,543 233 973 2,M3 3,632 223 1.191 3,096 475 63 434 972 , TOrM.DROSWTO3ST 43,~~~~~~9936,744 33 1030,035 6,534 333 3,102 13,51911.667 3,78D1033,63 29,8108 34,310 3,962 13.99130,333 33,006 1.7n330,930 250.63 3,355 446 2,935 3,736 :
0H1LD 1313029 2,793 20,77 43,363 Mot3 329 2,430 5,30 4,725 723 6,626 32.01 5,963 814 5,306 12,513 5,3 73 4,653730.39 3,476 196 3.29 2,964 M ( BASE ftWfl~ff OTfC5 X- MMLIN 135.045 2,07 13,264 33.381 2,332 263 2,053 4,438 3,667 563 5.536 9,766 4,393 591 4.433 9,420 3,86 532 3,320 7.711 35s 1333 59 3975 L)x FUTCAL C3muIGR4EN 413(C 3dU.L10) 1,423 196 3,297 2,933 393 26 363 335 335 47 336 739 423 59 39 9 33 377 531 334 742 95 33 79 It374 ftKC1NflU GE7UC8ES(CEDI-MI3,UAOt) 3,33 520 3,233 7,567 Mfi 335 134 497 723 330 754 31567 1,354 157 927 2,233 13231 120 9M ,443 396 53 354 U20 TOTAL IWO18T COST (C . MUAJON) 2029 2,793 A77 43,361 2.603 329, 2,410 5,340 4,725 723 6.66 32,07 5,963 314 5,306 32,3 S"5 73 4,637 106396 347 396 3,29 2,964 N)i
aHEL39f 43,99 3,744 3200306,035O 3,534 833 3,302 33,59 11.367 .713036,36 29.33 34,310 3.962 13,99330.33 13.036 1.m2 10,90 250.3 3,35 446 2,935 3,736 REPUBLICOF GHANA
National Feeder Roads Rehabilitation and Maintenance Project
Detailed Financing Plan
LOCAL TAXES FOREIGN TOTAL ----- ..... ------COFINANCING (Total Cost with Contingencies) ------. fEEDERROADS REHABILITATION AND MAINTENANCEPROGRAM (USS '000) IDA GOG USAID DANIDA OPEC JAPAN
1. RehabiLitation by Contract a. Capital-IntensiveContracts (1,500 km) 18,322 2,788 18,101 39,211 31,565 5,146 2,500 b. Labor-intensiveContracts (1,000 km) 8,579 858 2,726 12,162 6,003 6,159 Subtotal Rehabilitationby Contract 26,901 3,646 20,827 51,373 31,565 5,146 6,003 6,159 2,500 0
2. Regravellingby Contract a. Capital-IntensiveContracts (2,850 kIn) 12,135 1,847 12,028 26,010 13,932 2,456 4,684 2,438 2,500 SubtotatRegravelling by Contract 12,135 1,847 12,028 26,010 13,932 2,456 4.684 2,438 2,500 0
3. Spot Improvement/Culverts by Contract a. Labor-Intensive Contracts (720 km) 4,443 432 1,257 6,132 6,132 SubtotalSpot Improvements/Culvs. by Contract 4,443 432 1,257 6,132 0 6,132 0 0 0
4. Maintenanceand Workshop Equipment, Tools & Spares a. Recurrent Maintenance Spares 55 55 944 1,054 999 55 b. Routine faint. Equip.& Spares/Motorcycles 61 61 1,049 1,171 1,110 61 c. Routine MaintenanceHandtools 128 18 211 357 339 18 d. WorkshopEquipment, Tools, Spare Parts 37 37 630 703 666 37 e. Vehicles for DFR 47 47 821 916 869 47 f. Mobile Radios 18 18 315 351 333 18 g. Office Equipment 13 4 65 82 78 4 h. Training Equipmentand Aids 4 4 73 82 78 4 Subtotal Equipment, Tools & Spares 363 245 4,109 4,717 4,472 244 0 0 0 0
5. Design and Supervision a. Engineering Design Consultants (200 m/m) 639 41 654 1,334 292 40 1,002 b. Works Supervision Consultants (230 km) 760 49 784 1,593 1,544 49 Subtotal Design and Supervision 1,400 89 1,438 2,927 1,836 89 0 0 0 1,002
SUBTOTAL FEEDER ROADS REHAB. & MAINTENANCEPROGRAM 45,242 6,259 39,659 91,160 51,805 7,935 16,819 8,597 5,000 1,002
4I- 0 B. INSTITUTIOAL SUPPORTPRIOMM
1. MIrgemet Line Positfons a. Contract Manageeent Specalit (56 Wrm) 101 0 556 657 657 0 b. iLo Ltbor-b sed Training Spec. (30 Wnm) 55 0 301 356 356 0 c. ualifled Accoimtants in RN (2x56 Wm) 43 6 72 121 121 0 d. ProJect Swpprt NRN by 79 11 131 220 206 14 Subtotat ManagementLfne Positlons 278 17 1.059 1,354 1,340 14 0 0 0 0 2. Technical Line Positions a. Medinicat Specialists(2x24 sNV) 112 0 605 717 0 717 b. PlannfngSpecialist (24 Wim) 56 0 303 359 0 359 c. Road MaintenanceSpecialist (24 r"r) 56 0 303 359 0 359 d. Ceputer SystemsAnalyst (24 Wim) 56 0 303 359 0 359 SubtotolTechnical Line Positions 279 0 1,514 1.793 0 0 0 1,794 0 0 3. United NationsVoLunteers (UMV) Support a. FieldCivil EngineersCSx24 rWM) 94 6 95 195 189 6 Subtotal U.N. Volunteers(tEV) Support 94 6 95 195 189 6 0 0 0 0 4. Studies a. Organization & ManagementStudy (18 m/m) 77 0 222 299 0 b. Feeder 299 Road Ntce Mgmt. System (30 rm/) 131 0 376 507 0 c. Socio-EconomicIqect Study 507 1 (27 n/M) 66 3 36 105 105 3 SubtotalStudies 273 3 634 911 105 3 0 507 0 299 5. Training a. OFR ExternalTraining 24 16 729 769 16 753 b. KoforiduaLabour-based Training School 267 17 48 332 17 315 c. Short-TemnTraining T.A. (24 r/n) 62 0 338 399 0 399 SultotalTre!ning 353 33 1,115 1,500 0 33 1.467 0 0 0 6. LocalConstruction Industry Support a. Local Constr. IndustryAssesment (18 0sm) 77 0 222 299 0 b. OomesticContractor Training 299 Program 526 31 60 617 31 586 c. Light Labor-BasedContractor Equipment 0 219 3.970 4,189 219 1,976 1.994 SubtotalLocal Construction Industry Support 602 250 4,252 5,104 0 250 2.562 1,994 0 299 7. Rurat Mobilityand Environeunt a. Intermediate Means of Transport 453 91 1,228 1,772 91 b. Tree Planting 1,687 260 15 30 305 15 152 138 c. Environmentand WomenSupport 230 15 59 304 15 289 SubtotalRural Nobilityand Environment 944 121 1.317 2,382 0 121 152 2.108 0 0 8. DFR DecentralizationSupport a. Institutional Analyst (12 rn/) 35 0 192 227 227 0 b. DecentralizationStaff (144 m/m) 466 25 316 806 761 45 > c. DecentralizationSupport and Study Fund 426 30 147 603 573 30 P SubtotalDFR DecentralizationSupport 927 55 654 1,636 1,561 75 0 0 0 0 (D X SUBTOTALINSTITUTIONAL SUPPORT PROGRAM 3.750 485 10,640 14,875 x 3.195 502 4,181 6,403 0 598 N) z- TOTALPRJECT 0 P 48,991 6.744 50,300 106,035 55,000 8,437 21,000 15,000 5,000 1.600 -125 -______- ______--A nnex 4-14
6' a~~~~~~~~~~~~~~PaeIo
ay a Reoublicof Ghana National Feeder RoadsRehabiitation and MaintenanceProLect (NFRRMP) Schedulefor ProcessinaProcurement and Implementation
1992 1993 1994 1995 1996
Components pcurinet ddwerie Q2Q3Q4QIQ2Q3 Q4 QI Q2 Q3 Q4 QI Q2 Q3 Q4 QI Q2 Q3 Q4 A. Civi Wodcs 2. Regmavling a. Sdction d design phas I Done Phase 2 xxzxxxxx Phase 3 _ Phase4 _KTVVxVTxTYWTxVWTWxW b. Tendering Phaw I xxxxxx Pbase 2 _ Phase 3 _ Phae4 4xx c. Execution Phan I 2 Phase _ I..' Phase43
Q2 Q3 Q4 QI Q2 Q3 Q4 QI- Q2 TQ3 Q4 Q lQ2 Q3 Q4 Ql Q2 Q3 Q
M0 D
0' 127 Annex 4-14
Page 3 of 6
a! 'aL ]X | ]] j
El
& It a ai
Ga_ j _ N . 3 iV 1 a Republicof Ghana NationalFecdcr RoadsRebabilitation and M itenn Proje NFRRMP) Schedulefo ProcessingProrenent and Imlementation
1992 1993 1994 1995 1996 Coa-poneu & procurementdeiries Q2 Q3IQ4IQlIQ2IQ3 IQ4 Ql Q2 Q3 Q4 Ql Q2 Q3 Q4 QI Q2 Q3 B. Equipmentand Spa] a. P _ocurematdocumcnts ruxxx b. Tedring xxxxxx c. EvWluationa xMDLXXXX d. Ddhevy XXXXXXXmm C. Studies 1. OhM a. Procureman documents Done b. Proposls Done c. Evaluation xxx d. Execution XXXXXXXXXXXX 0. hnzplemieitation
, . . _ .- . . . _ - . - . -~~~~~~~~~~~~~~~~~~~~~~~~~~O 0I
.a T.1- - 129 - ______~~~~~~~~~Annex4-14 := § J _ _ | ~~~~~~~~~~~~~~PageSof 6
6i11x - 130 - Annex 4-14 Page 6 of 6
SI
I iC
rS - 131 -
Annex 4-15 Page 1 of 2
REPUBLICOF GHANA
NATIONALFEEDER ROADS REHABILLTATION AND MAINTENANCEPRO.ECT
Supervision Plan
IDA input into the supervisioneffort as outlined below is in addition to regular supervisionneeds for the review of progress reports, procurement actions, correspondence, etc., estimatedto require 12 staff weeks per year for the first two project years, and 8 staff weeks per year thereafter.
Approximate Dates of Input ExpectedSkill (mo/yr) Activity Requirements Staff Weeks
6/92 SupervisionMission Task Manager 5 (Project Launch Road Engineer Workshop) InstitutionalSpecialist Transport Economist
10/92 SupervisionMission Task Manager 3 Road Engineer
2/93 SupervisionMission Task Manager 3 InstitutionalSpecialist
6/93 SupervisionMission Task Manager 5 (Coordinationwith Road Engineer USAIDand DANIDA)Institutional Specialist Transport Economist
10/93 SupervisionMission Task Manager 3 Road Engineer
2/94 SupervisionMission Task Manager 3 InstitutionalSpecialist
6/94 SupervisionMission Task Manager 5 (Coordinationwith Road Engineer USAIDand DANIDA)Institutional Specialist Transport Economist - 132 -
Annex 4-15 Page 2 of 2
10/94 Mid-Term Project Task Manager 6 Review Road Engineer InstitutionalSpecialist Transport Economist EnvironmentalSpecialist
2/95 SupervisionMission Task Manager 3 Road Engineer
6/95 SupervisionMission Task Manager 5 (Coordinationwith Road Engineer USAIDand DANIDA) InstitutionalSpecialist Transport Economist
10/95 SupervisionMission Task Manager 3 Road Engineer
2/96 SupervisionMission Task Manager InstitutionalSpecialist
6/96 SupervisionMission Task Manager 5 (Coordinationwith Road Engineer USAIDand DANIDA) InstitutionalSpecialist Transport Economist
10/96 SupervisionMission Task Manager 3 Road Engineer
2/97 SupervisionMission Task Manager 5 (PCR Preparationand Road Engineer Coordinationwith InstitutionalSpecialist USAIDand DANIDA) Transport Economist
AF41N November1991
(P.NFR) REPUBLIC OF GHANA
NATIONAL FEEDER ROADS REHABILITATIONAN MINTENANCE PROJECT
MONITORINGMATRIX
COMPONENT ACTIVITY PERFORMANCE MONITORABLE MONITORABLE INDICATOR TARGETBY 6193 TARGETBY 6194 1. Physical Works a) Rehabilitaton Ph. I1- 540Jln i) Preparationof Engincrnag Design Stage of Final Report Clearedby WB by January, & BiddingDocument 1991 ii) Pocurement for Stage of Completion Complkt with WBIGOG Contractors clearancethus: LCB - October, 1992 ICB - January, 1993 iii) Procurment for Stage of Completion Completed.Cleared by SupervisionConsultant WB/GOG.Consulants on board by April, 1992 w iv) ActualConstruction Length (km) or percentageof At least 60% of LCB At least 100% of LCB, work done 30% of ICB 90% of ICB completed completed b) Rehabilitation Ph. 11 - 1140km i) Preration of Stage of Final Report Clearedby WB by October, EngineeringDesigns 1992 & BiddingDocuments
ii) Procurementfor Stage of Completion Completewith WB/GOG Contractors clearancethus: Completedby September, LCB - July, 1992 1993 ICB - September,1993
0 I la% COMPONENT ACTlVITY PERFORMANCE MONITORABLE MONrTORABLE INDICATOR TARGET BY 6193 TARGET BY 6194 PhysicalWorks (cont'd) iii) Procurementfor Stageof Completion Completewith WBIGOG SupervisionConsultant clearance.Consukant on board by April, 1993 iv) Actual Consruction Length(km) or % age of work Contractorsmobilizing to start At least 95% LCB done LCB 66% LCB c) Rehabilitation Ph. 111- 800km i) Prepartion of Stage of Fnal Reports Clearedby WB by June, 1993 EngineeringDesign & BiddingDocuments
ii) Pocurment for Documentsto be cleared by Prqualification documents LCB ready to start Contractors WB ready ICB clearedby WB, being . ______cleared by GOG iii) Procurementfor Documentsto be cleared by Procirmnent documents supervisionconsultants WB/GOG clearcl by WB. Invitationfor .______proposals issued iv) Actual Construction Length(KM) or % age of Contractorsmobflizing to work done start work d) Regravelling Ph. I - 510km i) Preparationof Stage of Fmal Reports To be clearedby WB by Engieering Design & March, 1992 BiddingDocuments ii) Procurementfor Stageof Completion Completedand cleared by WB Contractors by August, 1992 iii) ActualConstruction Length(kin) or % of work Al least 90% completed done
c) RcgraveUing Ph.2 - 670km i) Prqpartion of Stageof Final Reports For clearingby WB by June, > EngineeringDesign & 1993 oQ: l ______Bidding Documents
0 l COMPONRNT ACTIVITY PERFORMANCE MONrrORABLE MONITORABLE INDICATOR TARGETBY 6/93 TARGEr BY 6194 Phyeal Work (oont'd) n) Procurementfor Sta of Compldion Ready for WB Clearanceby Contractors June, 1993
iii) Actual Constuction Legth (kim)or % agc of work Contuction shtutsJuly, 1993 At least 90% (LCB) done completedby June,1994 t) Regaveding Ph. 3 - 870bn i) Preparationof Stageof Final Reports For clearingby WB by June, Engineing Desin& 1993 BiddingDocuments
ii) Procurementfor Stageof Completion Completkdand cekaredby Contractor WB January, 1994 ii) ActualConstnuction Lcngth(kin) or % age of work At last 30% competed done g) Regravelling Ph.4 - 1070nkm i) Preparationof Stageof Final Reports Ready for clearmgby WB by EngineeringDesign & June, 1993 BiddingDocuments
ii) Pocurement for Documentsready Bids ready and being Contrators evaluated,50% compktd by June, 1994 iii) Actual Construction LAngth(lkn) or % age of work done
h) Spot hmprovement LeAgth(kin) coveredby 300 kn (92/93)designed. 75% 400 km (94195)designed. designsand extent of of 92/93 program compleed 60% of total progrm Construction completed 2.1 Studies a) OrgaWnaon and Reportingstage reached Final study report submitted Implementationof Management(O & M) by Decenber, 1992 recommendation b) MaintenancePerformance Reportingstage rtached Final study report subnitted Pilot knplementation budgeting system (MPBS) by May, 1993 complded by April, 1994 o
o m xh .Io 0I COMPONENT ACTIVITY PERFORMANCE MONITORABLE l______MONlTORABLE INDICATOR TARGETBY 6193 TARGETBY 6194 Stdi_ (_oo'd) c) Local Contracbing Reportingstage reached Draft Final submited May Iplementation Industy (LCI) of '93. Fmal reportin progress recommendationbeing (50%) finalzed d) Socio-economic Impact Reportingstage reached FirstDraft Final Reporton Draft Studies Final Reporton short- ImmediateImpact submitted term impactfor RegraveDing for Regmaveflingand Spot and Spot Impsovementand Improvement Draft Fial Report on ImmediateImpact of 560 km LCB 2.2 Implenentation of Study a) ODM Stagereached Open ended. Recommendations To be based on To be based on study report study report b) MPBS i) No. of pilot road disticts ii) Coverageof rcievantDFR Professional& Technical (i), (ii) & (iii) started (i), (ii) & (iii) 100% staff completed iii) Stageof computerization __ _ c) LCI Stage reached Not started Implementation100% ______. com pleted d) SEIS Extentrecommendation used Open ended Open ended to refine socio-economic& selectioncriteria 3.1 InstitutionalSupport a) ContractManagemnent Stageof recruitment On board by April 1992 On board Specialist(CMS)_ b) Finance/Accounting Stageof recruitment On board by April 1992 On board Specialists(FAS) c) MechanicalSpecialist (MS) Stage of recruitment N/A - alreadyon board N/A - already on board d) Planning Spocialist(PS) Stage of recruitment On board by November1992 e) ComputerSpecialist (CS) Stageof recruitment N/A - alreadyon board __ _ f) Road MaintenanceEngineer Stageof recruitment On board by July 1992under l ______(RME) X _ o I COMPONENT ACIIVISY PERFORMANCE MONITORABLE MONITORABLE l______INDICATOR TARGET BY 6193 TARGET BY 6194 3.2 Staffing a) Proftesionalstaff Nwnberin place Open ended to be based on Open ended to be based on ODM ODM b) TechnicalStaff Number in place Open ended to be based on Open ended to be based on ODM ODM c) Managenent Staff Deputiesin place 3 Deputiesincluding Deputy Diector (Planning) in place 3.3 Training a) Professional No. TrainedOverseas Open ended Open ended No. Trained In-Country No. Trained In-House
b) Technical - do - - do - - do - i______ic) Management - do - - do - - do - 4. Budgetting& Consolidationof Annual Level of preparation 92193ready 93/94 ready Expenditurs Budgets& Expendituresfor all Funding Sources _ 5. Disbursaemnt EffectingPayments (IDA only) Level of IDA disbursement 25% as per SAR 52% as per SAR
DZ0 oq a
o l PROGRAMOF KEY EVENT
RMPlIATM!ON WORKBS
PH. 1- 560KM PH. 11- 1,140KM PH. m - 800KM 1. Pqwation of En&axing Deigs and Biding January, IM October, 19 Juno, 1993 Doenmn com; wih World Bank Clea_nce _
2. P Ranentfor Coator compld with LCB June, 1992 LCB August, 1993 LCB May, 1994 WBIGOG/clearance ICB Daember, 1992 ICB Septmber, 1993 ICB July, 1994 3. Poemeci_t for Supevision Consullantscomplet April, 1992 December, 1992 Fuary, 1994 with World Bank clearance 4. Actual Conslulc arts and ens LCB Oct.,1992-Oct., 1993 LCB Dec., 1992-May,1994 LCB July, 1994-July,1995 ICB Jan., 1993-Jul.,1994 lICB Oct., 1993-Mar, 1995 ICB Aug., 1994-Dec., 1995
co
x
0 1 oo 0 I. B0' Reoublicof Ghbu Natio Feeda Roads1 RHbiation nd Maintena Proieet(IFRRM rme basd Insiutionm Stqena inn SuSoit jna_
1992 1993 1994 1995 1996
Q2______Q3 |Q4 Ql Q2 Q3 Q4 Ql Q2 Q3 Q4 QI Q2 Q3 Q4 Ql Q2 Q3 Q4 1. I_kutaISuot - CoQsttAT.A.
1. M _anmenlin -P a. Cosac Manageno_t Specaist (i) Poessing of pocuranen: DFR done (it) Review& clearance: WB done (rii) Approvalof conact: GOO xxxxx (lv) Pcriodof assigninmen
b. IL0 Labor-basedTmining Speiis (i) ip ing of p mocet DFR xxirn (ii) Review& cleaanc: WB xxxix mx (iii) Approvalof conact: 000 xxx (IV)Period of c. 2 Acco_un MU (i) Pcessing of procmae DFR (ii) R cvw& clearance: WB xxx (dii)Approval of contrct: GO xxx (w) Periodof assigment: d. Projea Supportby MRH (i) Proessig of procaent: DFR xxxxxxxxxxx (-d)Review & cleaance: WB xxx (iii) Approvalof coutrac: 300 xxx (iv) Paeiodof asig_ment_ 2. TechnI LAe Positions a. Mechanial Specialsu (2) (i) ProceiSg of procremt: DFR xxxix (i) Review& learance: WB xxx (di) Approvalof contct: 00 xxx (C) Period of assignment:
Q2 Q3 Q4 QI Q2 IQ3 IQ4 QI Q2 IQ3 Q4 QI Q2 Q3 Q4 QI Q2 Q3 Q4
>
o 1 1992 1993 1994 1995 1996
______Qi QI3 Q4 Qi Q2 Q3 Q4 QI Q2 Q3 Q4 IQI Q2 Q3 Q4 QI Q2 Q3 Q4 b. PRa _Specit (i) Nming of procurnft DPR (ii) Rwie & cleerme: WI xxx (iii) Appoval of contUac 000 xxx (lv) Period of asigmma c. Road MabnteaaSpeclit O) P _toceief p_m :ut DFR xxxx (ii) Revie & dc ance: WB xxx (ri) Approvalof conrac: 000 xxx (iv) erd ofasgnn d. Compute Spechialit (I) hPceng of procurement DFR xxxix (i) Reviewh dckranc: WB xxix (m4i)Appv of contra: 000 xxxx (iv) Period of signment 3. U.N. Vduntes a. Fded Ci EnAieer (I) Procesing of prourment: DFR xxxxx(2) * m~~~~~~~~~~~xxxx() * ~~~~~~~~~~~~~~~xxxxx(1) ( Revie.) & lerne WI XXX(2) . ZR&c:~~~~~~~~~~~~~~~~~~~~XXI xxx(2) 0IBa (i) Apprva of contrct: 00 xxx(2) * ~~~~~~~~~~~~~~~~xxxv2) * ~~~~~~~~~~~~~~~~~~~~XXX(I) (lv) Paiod of aigment * .. f....wnwyT.._l.yrvv..ty.n
4. Trang a. TrminingOverse (i) Sdectlon of lnsutions: DFR Xxxxx(Group1) . . xxxxxx(Group2) . . xxxxx(Group3) (ii) Period of taining:
Q2 Q3 Q4 QlI Q2 Q3 Q4 QlI Q2 Q3 Q4 QlI Q2 Q3 Q4 Ql Q2 Q3 IQ4
, CD
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Ns 1992 1993 1994 1995 1996
______Q2 Q3 Q4 Ql Q2 Q3 Q4 QlIQ2 Q3 Q4 QI Q2 Q3 Q4 I IQ2 Q3 Q4 b. Kmwiib dEsb.umdTaing leodof srIinbF cp) . (ckoup) .* :koe3) . . s _ 4~~~~~~~~~~~~~~~~~KAXPW) c. I4am TeaaingT.L (i) Pe@emg of pocazeaca DFR uxx uc (-) Review& d_wmnc WB xxx xxx xxx (i Apovd of comza 000 XO xxx xxx f(w)Perid of _4gfae: irixx Uxxx * ~~~~~~~~~~~~~~~xxuxxxxxxxxm . x _ ___ . S. OFRDsmftuimCm a. Dhccua1iution Staff h Suppon Os)Erdotion of reqvuimna xxxuxxxxXXXuXuXXXzXXX XXzrnXXXXX 0 DeIeatraiihn)i2) l . = 2xxxxxxxxxxxx(Smage2) . xxxxzxxxxxxxx(St&Xe3) n I__kiaa Sunol &Siudes 1. rpoaficla MA_m (aamatCO ) SWdy Os Pm agof p _umc DFR urn (.6 iiRv#* &4=cw& WBB (m-)Appravat ofacon:z MGOO xxxX Ctw)Swid p=Wb: C ,sARgI x =XXK (V) k_uuon f R :omnaim 2. RoodIlamenanc Peformace Budgeing Sygm t) Swdy ) PN ginsof plucumef: xx (H-)Revie& .earanoe:xxx (ii) Appoa of conrat xxxXX (IT)StudY pew: (v) h nten of RPc_mmendatim:
Q2IQ3 Q4 QI Q2 Q3 Q4 QI Q2 Q3 Q4 QI Q2 Q3 Q4 QI Q2 Q3
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CD0
M -QJD3 0 1 I992 1993 1994 1995 1996
_QlI QQ IQ3 Q4 Ql Q2 Q3 I Q4 I Ql I Q2 I Q3 Q4 QlI QQ Q3 Q4 QI Q2QI Q4 3. CanstraouiIm1uoWy fi) P_mmmigof pocumcnmR DFR (i) Rcwew& _bm:s WB xxmt (iii) Appf. -a of cmiram 000 xxx (s) Studypelod: Cuka (v) ImPluatation of R 4. Soci:bo.oaoi Impac Study (I) Poceuia of pwcemax fal)Reviw & dwauc |Xxx (W) Stuy paiod: xxxmxxxxx xxmxxxxxxx xxxxxxxxxxxxx xxxxxxxxm QI Q2 Q3 Q4 QI Q2 Q3 Q4 QlI Q2 Q3 Q4 QlI Q2 Q3 Q4 QlI Q2 Q3QI
t'J
e >
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l1 I- - 143 - Annex 4-18
Detailed Procurement Table
(UtS Million Equfvalent) (I.D.A. shownin parentheses)
Ice LCU OTHER SHOPP. NA TOTAL PROJECTELEMENT 1. CIVIL WORKS 1.1 C.-I. Road Rehabilitation31.20 8.00 * - - 39.20 (27.14) (4.42) (31.56) 1.2L.-I. Road Rehabittation 12.16 12.16 0.00 1.3 Regrovelliig 13.09 5.80 - 7.12 26.01 C11.39) (2.55) C13.93) 1.4 Spot Improvement/Culverts - 6.13 6.13 0.00 1.5 BuildIng Works - 0.33 0.33 0.00 ...... W...... SubtotalCivil Works 44.29 13.80 0.00 0.00 25.74 83.83 (38.53) (6.97) 0.00 0.00 0.00 (45.50) 2. GO0S 2.1MaintenAnce Equipnent, 3.29 4.19 7.48 Spares& Tools (3.11) (3.11) 2.2 Vehicles 0.92 . 0.92 (0.86) (0.86) 2.3 Mok*LeRadios ' 0.35 0.35 (0.33) (0.33) 2.4 Office EquipmantL Aids 0.16 0,16 (0.15) (0.15) SubtotalGoods 4.21 0.00 0.00 0.51 4.19 8.91 (3.97) 0.00 0.00 (0.47) 0.00 (4.45) 3. T.A.& STLIDES 3.1 ManagementLirn Positions -0.9 0.98 (0.97) (0.97) 3.2 Technical Line Positions - * - 1.79 1.79 0.00 3.3 U.N.V Support - - 0.20 0.20 (0.19) (0.19) 3.4 Studies - . 0.70 0.51 1.21 (0.10) (0.10) 3.5 Training T.A. . - 0.36 - 0.40 0.76 (0.35) (0.35) ...... _...... Subtotal T.A. & Studfos 0.00 0.00 2.24 0.00 2.70 4.94 0.00 0.00 (1.60) 0.00 0.00 (1.60) 4. ENO.,TRAINING, OTHER SUPPORT
4.1 Eng. Desfgn & Supervision - 2.93 - 2.93 (1.87) M1.67) 4.2 Rural Nobility/Environment . . * 2.38 2.38 0.00 4.3DFR & Contractor Training - . 1.39 1.39 0.00 4.4 DOcentralitationSupport - 1.64 - - 1.64 (1.58) (1.58) SubtotalEng., Training, 0.00 4.57 0.00 3.77 8.34 Other Support 0.00 0.00 (3.45) 0.00 0.00 (3.45)
m _ _ _ _ - -_ _ _ ORMQTOTAL 48.50 13.80 6.81 0.51 36.40 106.02 (I.O.A.) (42.50) (6.97) (5.05) (0.47) 0.00 (55.00) PERCENTOF TOTAL 45.75X 13.021 6.421 0.481 34.331 1001 CI.D.A.) 77.28X 12.67X 9.19X 0.86X O.00 100X
ininin - - -u m - 144 - Annex 4-19 Page 1 of 2
REPUBLICOE GN
NATIONALFEEDER ROADSREHABILITATION AND MAINTENANCEPROJECT
Disbursement Schedulea/
CumulativeDisbursements
Quarter Appraisal Cumulative Standard DisbursementProfiles Ending Estimat % Ghana Africa Region All Sectors Transportation (US$ Million)
FY92 June 0.50 1% 0% 0% FY93 September 3.40 6% 3% 2% December 6.30 11% 6% 3% March 9.20 17% 8% 7% June 12.00 22% 10% 10% EY2A September 15.70 28% 14% 14% December 19.40 35% 18% 18% March 23.10 42% 22% 24% June 26.90 49% 26% 30%
2Y9S September 30.50 55% 32% 38% December 34.10 62% 38% 46% March 37.70 68% 44% 52% June 41.20 75% 50% 58%
FY96 September 43.80 80% 54% 62% December 46.40 84% 58% 66% March 49.00 89% 66% 72% June 51.60 94% 74% 78%
PY97 September 52.50 95% 78% 80% December 53.40 97% 82% 82% March 54.30 99% 86% 86% June 55.00 100% 90% 90% - 145 - Annex 4-19 Page. 2 of 2
EXf September 92% 92% December 95% 95% March 98% 98% June 100% 100%
a/ Credit assumedto become effective on April 1, 1992
AF41N November1991 (Dubumm.NFR) - 146 - Annex 4-20 Page 1 of 6
REPUBLIC OF GHANA
NATIONAL FEEDER ROADS REHABILITATION AND MAINTENANCE PROJECT
Environmental Assessment
A. Direct EnviromnentalImpacts of Feeder Road Rehabilitation
1. Feeder road rehabilitationby labor-basedmethods results in some, although minimal, direct environmentalimpact on the immediatearea if the roads remain in good condition. The constructionmethods applied provide for adequateside drainage and the dispersionof water from side drains by means of culverts placed in topographically appropriate locations. Culvert siting is done by the regionalor road area DFR engineers and is determinedusing 1:250,000 scale topographicmaps when available. Larger-scalemaps would be better, but currently are unavailablein Ghana. Similarly, aerial photos do not exist to supplementthe culvert sitings. Du'eto the expense and the difficulty with placing reinforced pipe culverts with sufficientfill under the labor-basedprogram, DFR has developeda new type of box culvert in 1-meteror 2-meter sizes. The bottom and the sides of the box culvert are constructedof concrete and the top of locally suppliedhardwoods. In the future, DFR is planning on pi viding reinforcedconcrete slabs to the box culverts instead of using the hardwood planks.
2. The corract camber placement, if maintained,should improve local runoff characteristics. Presently, most of the unimprovedroads are in such poor conditionthat sheet and gully erosion results along the center line of the roads. In addition, the side drains of the unimprovedroads have disappeared,leading to increaseddestruction of the soil and road embanhnents. The improved roads provide for adequatedispersal of water into the side drains and the disposal of the water down the side drains into small streams and natural drainage systemsthrough runouts. Erosion in the side drains is slowed by periodic scour checks. The labor-basedconstruction methods appear to consistentlyproduce better camber than the equipment-basedconstruction methods. However, if the assumed spot improvement and maintenanceof the labor-basedroads is not provided by DFR through its MOREMAT units and the communities,the destructionof the camber and the side drains could exacerbate increasedsoil erosion and sedimentationof surface water. Continuedroad maintenanceis crucial to mitigatingthe environmentalimpacts of the feeder road rehabilitation.
3. Equipment-basedconstruction of feeder roads has a more adverse effect on the environment. The use of large graders and bulldozersscour the side banks, especiallyin areas where streams had been temporarily diverted for the placementof pipe culverts. Along the Addah Junction-Mepefeeder road in Volta Region, for example, rather large areas on 15 to 20% slopes had been cleared in the placementof side banks and culverts. In one case, the erosion of a sideslope near a small stream indicatedincreased erosion and sedimentationof the waterway, which bas environmentaland health impactson the community. Equipment-based constructionis also more energy consumptivethan the labor-basedtechnology and, given the diffncultyin acquiring spare parts, more likely to result in the abandonmentof equipmentin rural areas. - 147 - Annex 4-20 Page 2 of 6
4. A negative environmentalconsequence of both labor- and equipment-based technologiesis the excavationof borrow pits in the vicinity of the roads. In the case of the equipment-basedconstruction method, the excavationleaves a much larger area that tends to fill with water. With the labor-basedmethod, the excavationsare smaller, locally placed, and relatively shallow. In both cases, the contractoris required by contract to remove and store the topsoil and replace it and revegetatethe area after completionof the work. Contractors interviewedhave not done this and it appears that they do not consider this an obligation of the contract. The larger pits, not being revegetated,collect large amountsof rainwater runoff which potentially contributesto an increase in diseases such as malaria and bilharzia. The smaller pits, no longer being used for other beneficialland uses, contribute to increasedsoil erosion. At two of the sites visited (AddahJunction-Mepe and Datano-Suniensomodel roads in Sefwi-Wiaso),signs of significantsoil erosion were evident. In some cases, the excavated pits are to be left ope-i for future maintenanceactivities.
B. Indirect EnvironmentalImpacts of Feeder Road Rehabilitation
5. Since a large number of unimprovedfeeder roads in Ghana are almost impassable,the rehabilitationcan be consideredto open up rural areas similar to new road construction. Therefore, it is necessary to evaluate the potential indirect impacts of the rehabilitatedfeeder roads on regional environments. This is especiallytrue when rehabilitated roads pass through or are contiguouswith environmentallysensitive areas, such as forest reserves, wetlands, or wildlife sanctuaries(see map). Increased access to markets and opportunitiesfor production of high-valuecash crops for rural householdscould, conceivably, lead to increasedpressure on natural resources. The rehabilitationof feeder roads represents only one of the variables comparedto another. However, in the future, there are two cases where the rehabilitationof feeder roads could have negative indirect environmental consequencesand which need to be investigated.
6. The rehabilitationof feeder roads in cocoa-producingareas improvesthe efficiency of cocoa evacuationand, therefore, could induce increased productionor a shift in land use. This could result in increasedpressure on the forest reserves, since land for expansionof production is generally scarce in these areas. However, it is unclear which variables affect the intensificationor the expansionof cocoa production the most. Prices have been favorableto producers and rain has been above average for the last several years. Improved roads definitely increase the potential for better marketing, but since producers can store cocoa up to one year on farm, the road access is not as crucial as with perishablefood items. Also, the Cocoa Marketing Board (COCOBOD)has an extensivenetwork of cocoa depots (within not more than a five-mile radius from all producers and, in fact, probably close to one mile from most producers) that facilitatesthe transport of cocoa to the depots by farmers. Improved roads decrease transport costs and increase ease of remuneration, but it is difficult to state categoricallythat improved roads are the incentive for increasedproduction. They are probably a factor, but may not be the overwhelmingone. The improved roads probably do not affect the collectionof cocoa at the depots by COCOBOD,since most of their trucks are 40 tons and the maximumaccessible load of the feeder roads is 5 tons.
7. Improvedfeeder roads may also affect the amount of national forest logged. It is not expectedthat this will result in increasedproduction by the timber concessionaires, since their quotas are strictly imposedand regulated. However, the independentloggers are - 148 -
Annex 4-20 Page 3 of 6
harder to monitorand it is possible that the improvementof the feeder roads through forest reserves could increase the pressure on the resources from this group.
8. The Forest Departmentis starting to inventory and monitor the cutting of all primary species. Class I species (see Attachment 1) are all individuallyidentified and concessionairescannot cut these trees until they reach a mini num girth. Due to the encroachmentof agriculture, certain species, such as odum (Milicia excelsa and Milicia regia) are facing extreme pressure. The export of these hardwoods is now limited, but the rehaoilitationof feeder roads could have an impact on the amount of trees felled by un- licensed cutters.
9. In the charcoal-producing,areas of the country, the rehabilitationof a feeder road could increasethe cutting of trees. The rehabilitatedroad would make it easier to get the charcoal out of the area, increasingthe economicpotential of the product. Data from Nkoranza District indicate the importanceof good roads to the price of charcoal. The price of charcoal in the rural areas of Nkoranzais C400 per bag. If the producer is able to transport it to Nkoranza, the price rises to C800 per bag. In Sunyani, the cost is C1,200 and in Accra, charcoal sells for C2,000 per bag. An economicanalysis of the supply and demand and the amount of the sale price that is attributedto transport cost has not been done, but it is clear that the rehabilitationof feeder roads in the district will impact on the amountof charcoal produced and, the price offered in Nkoranza and possibly further away. The incentiveto produce more charcoal will have definite adverse environmentalimpacts if not controlled.
10. A significantindirect impact of feeder road rehabilitationcould be the increased soil erosion if the roads are not routinelymaintained by the communities. Sustainabilitydepends on the contributionof labor by the communitiesserved by the roads. Therefore, it is crucial that a planningprocess be developedthat provides methodologiesand techniquesfor facilitating communityparticipation in feeder road miaintenanceto minimize future environmentalimpacts.
C. Overall Recommendationsfor MitigatingEnvironmental Impacts
11. Both the potentialdirect and indirect impactsof rehabilitatedfeeder roads were considered in developingthe recommendationsthat follow.
RecommendedChanges in Feeder Road MaintenancePractices
* Encourage labor-basedroad rehabilitationtechnologies as much as possible.
* Require, before the final payment is made to contractors, that stockpiled topsoil is replaced and gravel pits revegetated. This provision should also be specifiedin the bill of quantitiesof future tender documentsso that contractors recognizethe requirement during the preparation of tenders.
* Minimize the number of excavatedpits and practice soil stabilizationin areas where steep slopes exist to minimizeerosion. - 149 - Annex 4-20 Page 4 of 6
* Replace the hardwood timber culvert tops with reinforced concrete slabs to preserve the primary species or work closely with the forestry department to determine the quotas for certain species and the amount of wood that DFR can cut.
* Deiciop an environmentalsection of the ILO Training Handbookthat would iemonstrateto contractorsthe procedures for minimizingsoil erosion, gravel pit use and restoration, and minimizingdestruction of contiguousareas.
* Develop procedures for the compensationof landholderswho lose land to gravel pits. This is an issue in certain areas and one which could affect future communityparticipation.
* Develop environmentallysound procedures for both labor- and equipment- based technologiesfor crossing wetlands cr streams.
* Provide decenttopographical maps and adequate trainingto engineers for the design of drainage control systems.
Planningfor MitigatingIndirect Impacts
12. First, problems with consistentlabor supply for routine maintenancehave developeddue to a lack of understandingon the incentive systemsof the communities. A better understandingof available labor and incentivestructures of rural communitiesis necessaryto facilitate the communityparticipation in feeder road maintenance. To enhance this understanding, an appliedresearch effort would be necessary. Several communitiesin diverse ecologicaland socio-economicsituations would need to be selected for case studies that identifythe followingkey variables affectingcommunity participation in feeder road j ~~~maintenance:
* the seasonal householdand communitylabor profiles (by gender) and constraints;
* the spatial location of households in relation to the rehabilitatedfeeder roads and their participationin routine maintenance;
* the role and influenceof traditionaland other leaders in mobilizingcommunity work efforts;
* the role of direct incentivesin communityparticipation in feeder road routine maintenance;
* the role and influenceof road committeesin the community;
* the major beneficiariesof the road in the communityand their contributionto routine maintenance; - 150 - Annex 4-20 Page 5 of 6
9s the influenceof DFR and other training programson community-basedroutine maintenance;
o the relative importance of the rehabilitatedfeeder road to the community;and
* the potential role of the communityin evaluatingdirect environmentalimpacts of feeder road rehabilitation.
13. Second, DFR should develop mobile training seminars for communitieson the necessity of routine maintenancefor the sustainabilityof feeder roads. DFR would use videos and other media to explain the damagingeffects of soil erosion on the conditionsof the roads. These seminars could also be used in collaborationwith other extension services, such as functional literacy campaigns,mobile planning units, the Ghana InformationServices, and the Ghana Education Service, to expand environmentalawareness. For example, discussionson the control of soil erosion in the side drains could be expandedto discuss village and agriculturalsoil erosion. DFR has produced one video presentationof labor-based rehabilitationfor educationpurposes and this recommendationwould fit in well with DFR's training focus.
14. Third, DFR should liaise and coordinatewith the EnviromnentalProtection Council (EPC) on the developmentof criteria and a planning process to identifyfeeder roads that may have direct and/or indirect environmentalimpacts. This would include, but not be limited to, those feeder roads that cause direct impactsin crossing or passing wetlands, forest areas and reserves, wildlife sanctuaries, and other environmentallysensitive areas. In addition, DFR and EPC should develop procedures for conductingenvironmental assessments (EA) on feeder roads that are considered to potentiallyimpact on the environment.
15. Fourth, after the road area prioritizationof roads to be rehabilitated,DFR will coordinatethe final selection with MA, the Departmentof Forestry, and the EPC to determine which of the roads could possiblyhave environmentalproblems. It is necessaryfor the Forestry Departmentand DFR to work together to insure proper identificationof potential problem areas and methods for enforcing cutting regulations. In the case of feeder roads with potential adverse environmentalimpacts, it must be determined which organizationwill be responsiblefor conductingthe EA.
16. Fifth, DFR should consider the developmentof a spatial data base, such as a Geographic InformationSystem (GIS), to assist in recording maintenanceactivities, designing culverts and drainage systems, and storing informationon land use in road influence areas. The EPC has both ERDAS and ARC/INFOGIS setups and would be availableto assist DFR in establishinga relevant system. The data bases developedcould also be used to assist the Departmentof Forestry and the Ministry of Agriculturein identifyingchanging land-use patterns and impacts on the communitiesdue to these changes.
17. Sixth, DFR will continue to use consultantsto conduct engineeringstudies and the preparation of documentssuitable for internationaland local competitivebidding in accordance with World Bank requirements. The consultantsshould consider all of the above recommendationsin completingtheir studies. This is especiallytrue when the consultants - 151 - Annex 4-20 Page 6 of 6 assess the conditionand structural adequacyof existingdrainage structures and facilitieswith a view toward recommendingimprovements to meet hydrologicaland hydraulic needs.
18. Seventh, training for DFR staff and local contractorsshould include workshops, seminars, and field trips to institutionalizeenvironmental awareness into DFR programs. During future design phases of the NFRRMP, World Bank staff should identify methods, approaches, and programs to train DFR staff on the integrationof environmental concerns into DFR planning, design, and training activities. Additionally,Bank staff should investigate ways to assist DFR in the establishmentof a library on environmentalirmpacts of physical infrastructureprojects. Additionally,several DFR staff should be trained in EA methodology.
AP41N Novembr 1991
(EnwiAsew.NFR) - 152 - Annex 5-1 Page 1 of 5
REPUBLIC OF GHANA
NATIONAL FEEDER ROADS REHABILITATION AND MAINTENANCEPROJECT
Economic Analysis
A. Evaluation Methodology
1. The methodologyused in evaluatingbenefits and costs for feeder road selection was based on Beenhakker'sand Lago's "SimplifiedOperational Procedures for Screening and Appraisal" (see World Bank Staff Working Paper No. 610, 1983). This methodologyoutlines various options for analyzingthe returns from rural road investments.
2. The economic evaluationwas based on estimatesof internal rates of return for each of the proposed feeder road investments. Cost estimatesfor rehabilitationand maintenanceof phase-I feeder roads (560 km) were obtainedfrom engineeringstudies carried out by three local consultingfirms in four high to mediumagricultural potential zones. These zones are Accra-Ada, Ejura-Kintampo,Salaga-Bimbila, and Wa-Tumu-Fian(see map).
3. Phase-2 feeder roads (1,140 km) are located in Mampong,Sunyani, Techiman, Bekwai, Cape Coast, Hohoe, Yendi, Tamale, and Tumu road areas. Rehabilitationcost were estimatedby socio-economicconsultants who did the feeder road selection, following procedures for cost estimationand unit cost data establishedby DFR. The same procedure will be applied for the economicanalysis of the remainingphase-3 (800 kIm)feeder roads.
4. Engineering studies for phase-2 roads still need to be done. Rehabilitation cost estimates reflect each road's present conditionand the anticipatedmaintenance requirements after rehabilitation. Average costs of routine and periodic maintenanceof US$350 and US$7,150 per km and year, respectively,were used. These cost estimatesare based on analysis of recent projects executedby DFR.
5. On all feeder roads pre-selectedfor the project, the main benefits from rehabilitationare estimated with the producer surplus approach. The formulationused to assess economicbenefits is the one prescribed by Beenhakkerand defined as follows:
(1) B = Pm(Q2 - QI) - (C2 - CI) - (K2Q 2 - KIQI)
or
(2) B = B1 + B2 with: - 153 - Annex5-1 Page2 of 5
B1 (Benefitsaccruing to farmers)and B2 (Benefitsaccruing to transporters)calculated accordingto:
(3) B1 = P2Q2 - PIQI - (C2 - Cl) (4) B2 F2Q2 - F1QI - (K2 Q2 - K1Q1) where: P., = crop's localmarket price ($/ton);
P1,P2 - farmgateprice of productin the withoutand withproject situation ($/ton);
Q,,Q2 = exportsof productsfrom the road's zone of influencein the without and withproject situation, respectively (tons);
CIAC2= economiccost of producingthe entire agriculturalproduct under considerationin the withand withoutproject situation, respectively ($;
, ,FJ2= fare for transportingone ton of exportablesurplus over the rural road in the withoutand withproject situation, respectively ($/ton); and
K1,K2 = economiccost of transportingone ton of exportablesurplus over the rural road in the withoutand withproject situation, respectively.
6. The evaluationof the proposedfeeder road investmentswas donewith the secondformulation (equation 2) usingfarmgate prices. Data for the rate of returncalculation of eachproposed feeder road investmentwas basedon householdsurveys, road area secondaryinformation, and a cross-sectionalstudy conducted in four zonesfor phase-i and nine roadareas for phase-2feeder roads among households in accessibleand inaccessible feederroad corridors. 7. From thesedata, the stimulusattributable to improvedaccess was inferred. This stimuluswas obtained by consideringdata on averageper householdoutputs obtained fromsome 2,700 householdsalong both accessible and inaccessiblecorridors and controlling for differentfarm and familysizes. The stimulusattributable to improvedaccess varies considerablyaccording to crop and road area. B. Data Inputand Assumptions S. Detailedhousehold data from a totalof 2,700households in about54 feeder road corridorsand other data fromeach of the selectedcorridors were collected for phases-I and -2. The householddata wereanalyzed controlling for variationsin areas cultivatedand householdsize to estimatethe differencesin productionof majorcrops between accessible and inaccessiblecorridors. Additionaldata froman estimated1,200 households along 24 feeder road corridors will be collectedfor roadsstill to be pre-selectedfor phase-3. The following data for the zoneof influenceof eachroad corridor(defined to includea bandof 3 kilometers on each side of the road) werecollected for phases-Iand -2: - 154 - Annex 5-1 Page 3 of 5
(a) populationdata using census and other data from district assemblies (at the village level);
(b) regional and road area level production data for each of the main crops, average areas cultivatedand costs of production from the road area agriculturaloffices and the Policy Planning, Monitoring and Evaluation Department of the MA;
(c) householdlevel data on areas cultivatedon major crops, production, storage, losses, sales, consumption,mode of transport, average trip distances, and informationon modal split (e.g. intermediatemeans of transport, vehicles and headloading).
9. For the economicappraisal, the "without" project situation assumes that DFR will not be able to rehabilitate and maintain the selected project roads due to an assumed lack of financial resources. The "with" project situationassumes full rehabilitationand maintenanceof these feeder roads over a 15 year analysisperiod, using the resources provided by IDA, cofinanciersand GOG. For the anticipatedbenefits to be realized during the life of the feeder roads, adequateresources are assumed to be allocatedfor both routine and periodic maintenanceactivities.
10. Economicreturns are calculatedusing border prices of both cost and benefit streams. Border prices consist of estimatedimport prices of all foreign inputs estimated at c.i.f. prices, excludingtaxes but includinginternal transport costs. Local componentsare converted to border prices using a conversionfactor of 0.93. An exchangerate of Cedis 375 = $1 is used and kept constant over the period of analysis. All prices relate to mid-1991. Economic costs exclude price contingenciesbut includephysical contingenciesof 10 percent.
11. The two principal benefits are (i) increased value added arising from farmer's ability to produce and market more, and (ii) reductions in transport costs. The calculationof benefits emphasizesthe impact of improved accessibilityand does not consider possible changes in the rate of populationgrowth as a result of better access.
12. Quantity and value added for the major exportable crops in each corridor was calculatedbased on householddata collectedon quantityproduced, consumed, sold and lost in inaccessible(QJ) and accessible(Q) corridors. The results from a cross-sectionalstudy indicate that on average production is 20 percent higher in households in accessiblecorridors than in inaccessiblecorridors. The difference between means for the major crops in each corridor was statisticallysignificant and corroboratedfindings in similar studies elsewhere.
13. Average output figures for the road corridors were convertedto a value basis using average sales, consumptionand loss data, as well as farmgate prices in accessible and inaccessiblecorridors (Pl and P2, respectively). - 155 - AnnexS-1 Page 4 of S
14. The increasesin economiccost of producingthe main cropsin the accessible and inaccessiblecorridors (Cl and C2, ,peib) were calculatedas a functionof the gross value of productionfor each crop lessdirect expenses(i.e. variablecost).
15. Averagefares for transportingone ton of exportablesurplus over the feeder road wereobtained for inaccessiblecorridors (F,) and accessiblecorridors (F 2) in each area from the survey. 16. The economiccosts of transportationaccording to the modeused were estimatedseparately for the inaccessiblecorridors (K,) and accessiblecorridors (K2). In the caseof vehicles,vehicle operating costs for differentroad conditionswere compiled from data gatheredby GHA. 17. The anticipatedshifts in modesfor produceevaluation were estimated by simplycomparing the patternof modesused in haulingmarketable surplus in the inaccessible and accessibleareas. Basedon empiricalevidence it wasassumed that a proportionof the exportableproduce or surpluswill still be headloadedfrom farm to marketeven after road rehabilitation.When a road improvementresults in betteraccess (e.g. as it passesfrom "poor"to "good"access), there is a reductionof 15 percentin ton-kmheadloaded, while only 10 percentreduction when the roadpasses from "fair" to ngood". C. Results 18. The abovemethodology was followedin assessingthe economicviability of feederroads selected for phases-i and-2of the NFRRMP. Of 800 km evaluatedfor phase-i, 560 km of feederroads resulted in ERRabove 10 percent. For phase-2,1,140 km out of 1,920km of feederroads evaluated have ERRs in excessof 10 percent. For the NFRRMP phase-3feeder road rehabilitationworks, additional cross-sectional data will be collectedfrom an estimated1,200 households along 24 road corridorsin 8 additionalroad areas. 19. Annex5-1, Table6 showsa sampleof the formatused in calculatingeach road's ERR. The economicrates of returncalculated for eachof the individualroad links consideredunder phases-iand -2 are includedin Annex5-2, Tables1 and 2, respectively. Out of the 66 individualfeeder road links analyzedfor phase-i, 42 (or about65 percent)with a total lengthof 560 km wereconsidered to be economicallyviable with economic rates of returnin excessof the 10percent. For phase-2,121 out of 206 individualfeeder roads with a total lengthof 1,140km are economicallyviable. The rates of returnon the selectedroads range from 10 percentto well above100 percent. 20. Annex5-2, Tables 1 and 2 also showthe variousfeeder road linkswith rates of returnbelow 10 percent. Mostof thesefeeder roads are quite longand thereforehave high rehabilitationcost comparedto the expectedbenefits in the formof increasedvalue added and benefitsaccruing to transporters. 21. Annex5-1, Table 1 summarizesall ERRsthat werecalculated including the resultsof a sensitivityanalysis of differentproject components and the projectas a whole. Annex5-1, Tables2 to 5 givesthe resultsof ERRcalculations for phase-i (560km), phase-2 - 156 - Annex5-1 Page5 of 5
(1,140kn) and phase-3(800 km) (estimated)feeder road rehabilitation works as well as the periodicmaintenance (regravelling) program (2,850 km). Cost-benefitanalyses for the remaining800 km of phase-3will be conductedsoon by localconsultants.
AP41N November 1991
(EconEval.NFR) - 157 - Annex 5-1 Table 1
SUSUARY OF ERR AND SENSITIVITY Alt Figures in Percentages
ERRwith ERRwith ERRwith Costs up 20% Percent of Total E R R Costs up Benefits down and Benefits Components Project Costs Base Case 20% 20% down20% ...... w*.,b..
1. PHASE-1(1992) 14 47 37 35 27 FeederRoad Rehabilitation Program(S60 km selected and designed) 2. PHASE-2(1993-1994) 22 47 37 34 26 FeederRoad Rehabilitation Program(1,140 km selected and to be designed) 3. PHASE-3(1995-1996) 15 42 34 32 25 FeederRoad Rehabilitation Program(800 km to be selected and to be designed) 4. FeederRoad Periodi 25 83 56 51 33 MaintenanceProgram (2,850 kmto be selected and to be designed)
5. Components with Ben 24 ------not quantified 6. Coposite ERRon 36 47 37 35 26 Items and 2 7. ConpositeERR on 51 45 36 34 26 Items I to 3 8. CoqnosfteERR on 76 58 42 39 28 Items I to 4 9. CompositeERR on 100 44 32 30 21 Items 1 to 5 Total Project - 158 - Annex 5-1 Tabl e2
REPUBLICOF GHANA NATIONALFEEDER ROADS REHABILITATION ANDMAINTENANCE PROJECT ECONOMICRATES OF RETURNOF PHASE-1(560 KM) FEEDER ROAD REHABILITATITION PROGRAM (INCEDIS)
...... PERIODICAND ROUTINE REHABILITATIONMAINTENANCE TOTAL BENEFITSTO BENEFITSTO TOTAL COSTS COSTS COSTS FARMERS TRANSPORTERBENEFITS NET FLOW YEAR 1 1,888,844,17361,692,852 1,950,537,025 329,262,862 64,619,220 393,882,082(1,556.654,943) YEAR 2 834,930,210 62,340,132 897,270,342666,337,045 68,601,850 734,938,895(162,331,447) YEAR 3 62,340,132 62,340,1321,003,411,228 72,458,131 1,075,869,359 1,013,529,227 YEAR 4 62,340,132 62,340,1321,340,485,410 76,314,413 1,416,799,823 1,354,459,691 YEAR 5 62,340,132 62,340,1321,348,296,731 76,360,827 1,424,657,558 1,362,317,426 YEAR 6 122,790,132122,790,132 1,348,296,731 76,360,827 1,424,657,558 1,301,867,426 YEAR 7 1,153,857,8821,153,857,882 1,348,296,731 76,360,827 1,424,657,558 270,799,676 YEAR 8 75,82S,132 75,825,1321,348,296,731 76,360,827 1,424,657,558 1,348,832,426 YEAR 9 62,340,132 62,340,1321,348,296,731 76,360,827 1,424,657,558 1,362,317,426 YEAR10 62,340,132 62,340,1321,348,296,731 76,360,827 1,424,657,558 1,362,317,426 YEAR11 122,790,132122,790,132 1,348,296,731 76,360,827 1,424,657,558 1,301,867,426 YEAR12 62,340,132 62,340,1321,348,296,731 76,360,827 1,424.657,558 1,362.317,426 YEAR13 1,153,857,8821,153,857,882 1,348,296,731 76,360,827 1,424,657,558 270,799,676 YEAR 14 75,825,132 75,825,1321,348,296,731 76,360,8271,424,657,558 1,348,832,426 YEAR 15 62,340,132 62,340,1321,348,296,731 76,360,8271,424,657,558 1,362,317,426
ERR (IN X) e 47 - 159 - Annex 5-1 Table 3
REPUBLICOF GHANA NATIONALFEEDER ROADS REHABILITATION AND MAINTENANCEPROJECT ECONOMICRATES OF RETURNOF PHASE-2(1,140 KM) FEEDERROAD REHABILITATIONPROGRAM (IN CEDIS)
...... "...... _...... PERIODICAND ROUTINE REHABILITATIONMAINTENANCE TOTAL BENEFITSTO BENEFITSTO TOTAL COSTS COSTS COSTS FARMERS TRANSPORTERSBENEFITS NET FLOW ...... YEAR 1 YEAR 2 2,608,530,919 143,044,1202,751,575,039 515,654,761 76,861,146 592,515,906(2,159,059,133) YEAR 3 2,608,530,919 143,044,1202,751,575,039 1,031,309,521 118,026,111 1,149,335,632(1,602,239,407) YEAR 4 0 143,044,120 143,044,120 1,79,604,765 125,196,065 1,918,800,8301,775,756,710 YEAR 5 0 143,044,120 143,044,1202,555,900,008 132,711,553 2,688,611,5612,54S,567,441 YEAR 6 0 143,044,120 143,044,1203,049,180,973 137,549,631 3,186,730,6043,043,686,484 YEAR 7 0 1,176,049,3801,176,049,380 3,052,020,987 137,563,698 3,189,584,6852,013,535,305 YEAR 8 0 2,460,862,1202,460,862,120 3,054,972,732 137,578,339 3,192,551,071 731,688,951 YEAR 9 0 143,044,120 143,044,1203,058,040,720 137,593,579 3,195,634,2993,052,590,179 YEAR 10 0 143,044,120 143,044,1203,061,229,650 137,609,442 3,198,839,0923,055,794,972 YEAR 11 0 143,044,120 143,044,1203,064,544,414 137,625,955 3,202,170,3693,059,126,249 YEAR 12 0 143,044,120 143,044,1203,067,990,111 137,643,144 3,205,633,2553,062,589,135 YEAR13 0 143,044,120 143,044,120 3,071,572,048 137,661,037 3,209,233,085 3,066,188,965 YEAR 14 0 3,493,867,380 3,493,867,380 3,075,295,755 137,679,665 3,212,975,420 (280,891,960) YEAR15 0 143,044,120 143,044,120 3,079,166,991 137,699,059 3,216,866,050 3,073,821,930 YEAR16 0 143,044,120 143,044,1203,083,191,755 137,719,251 3,220,911,0063,077,866,886 ERR (IN X) * 47 - 160 - Annex 5-1 Table 4
REPUBLICOF GHANA NATIONALFEEDER ROADS REHABILITATION AND MAINTENANCE PROJECT ECON01MCRATES OF RETURNOF PHASE-3(800 KM) FEEDERROAD REHABILITATION PROGRAM (INCEDIS)
...... PERIODICAND ROUTINE REHABILITATIONMAINTENANCE TOTAL BENEFITSTO BENEFITSTO TOTAL COSTS COSTS COSTS FARMERS TRANSPORTERSBENEFITS NET FLOW YEAR 1 YEAR 2 1,404,000,000 31,500,000 1,435,500,000 99,187,200 47,232,000 295,200,000 (1,140,300,000) YEAR 3 1,638,000,000 68,250,000 1,706,250,000 248,169,600 73,860,000 738,600,000 (967,650,000) YEAR 4 1,638,000,000 105,000,000 1,743,000,000 270,438,336 56,341,320 804,876,000 (938,124,000) YEAR 5 105,000,000 105,000,000 635,241,600 94,530,000 1,890,600,000 1,785,600,000 YEAR 6 105,00C,000 105,000,000 779,637,600 116,017,500 2,320,350,000 2,215,350,000 YEAR 7 105,000,000 105,000,000 767,541,600 114,217,500 2,284,350,000 2,179,350,000 YEAR 8 703,500,000 703,500,000 854,784,000 127,200,000 2,544,000,000 1,840,500,000 YEAR 9 803,250,000 803,250,000 854,784,000 127,200,000 2,544,000,000 1,740,750,000 YEAR 10 803,250,000 803,250,000 854,784,000 127,200,000 2,544,000,000 1,740,750,000 YEAR11 105,000,000 105,000,000 854,784,000 127,200,000 2,544,000,000 2,439,000,000 YEAR 12 105,000,000 105,000,000 854,784,000 127,200,000 2,544,000,000 2,439,000,000 YEAR13 105,000,000 105,000,000 854,784,000 127,200,000 2,544,000,000 2,439,000,000 YEAR14 703,500,000 703,500,000 854,784,000 127,200,000 2,544,000,000 1,840,500,000 YEAR 15 803,250,000 803,250,000 854,784,000 127,200,000 2,544,000,000 1,740,750,000 YEAR 16 803,250,000 803,250,000 854,784,000 127,200,000 2,544,000,000 1,740,750,000 ERR (IN X) = 42 - 161 - Annex 5-1 Table 5
REPUBLICOF GHANA
NATIONALFEEDER ROADS REHABILITATION AND MAINTENANCEPROJECT ECONOMICRATES OF RETURNOF PERIODICMAINTENANCE (2,850 KM) FEEDERROAD PROGRAM (IN CEDIS)
...... PERIODIC ROUTINE MAINTENANCE MAINTENANCE TOTAL BENEFITSTO BENEFITSTO TOTAL COSTS COSTS COSTS FARMERS TRANSPORTER BENEFITS NET FLOW
.... 0.. 6..7..5.0.0. 6.1. .1. . 5"0...... 1...... 0. ... 00...... 0..1....5 0 YEAR t...... 1,932,656,2501..9...... 6...... 0. ---- 527,625,0005...... 6...... ---...... 0...... 0..., 2,460,281,250 1,170,637,500 61,612,5001,232,250,000 (1,228,031,250) YEAR 2 1,932,656,250 912,000,0002,844,656,250 2,341,275,000 123,225,000 2,464,500,000 (380,156,250) YEAR 3 1,932,656,250 912,000,0002,844,656,250 3,511,912,500 184,837,5003,696,750,000 852,093,750 YEAR 4 1,932,656,250 527,625,0002,460,281,250 4,682,550,000 345,030,000 4,929,000,000 2,468,718,750 YEAR 5 527,625,000 527,625,0004,682,550,000 246,450,000 4,929,000,000 4,401,375,000 YEAR 6 527,625,000 527,625,0004,682,550,000 246,450,000 4,929,000,000 4,401,375,000 YEAR 7 527,625,000 527,625,0004,682,550,000 246,450,000 4,929,000,000 4,401,375,000 YEAR 8 527,625,000 527,625,0004,682,550,000 246,450,000 4,929,000,000 4,401,375,000 ERR IN X)= 83 - 152 - Annex 5-1 Table 6 Economic Evaluatioti of Feeder Roads PARTI. Road Information
GENERAL RoadADA FOAH TOTOPE Zone 1 ACCRAVOLTA Length 12,5 KMS Accesibilitr 1 INDEX Population 4,600 PERSONS Ave.Headloading Dist. 1.82 KMS
FINANCIALCOSTS OF PHYSICAL WORKS
Rehabilitation2,392,000 CEDIS/KM Periodic1,300,000 CEDIS/KM Routine 200,000CEDIS/KM
FORSENSITIVITY ANALYSIS IncreaseinCosts 20% ReductioninBenefits 20%
PARTII. Benefits
ACCRUINGTOFARMERS
SituationWithout Project (w/o)
ProductionperHousehold 3.86TONS (all crops) volumeof Sales 2.5TONS (all crops) NetValue of Exportable Sur 250,000CEDIS (at farmgate prices per household)
TotalIncreases inValue of Exportable Surplus and Production With Project (W/p) (Valueadded increases formain crops in each area calculated with results from cross-sectional analysistoconsider changes inaccessibility (e.g.poor to good, fair to good))
PerHousehold T 0 T A L NetIner. Inc.Prod. Number NetIncr. Inc.Prod. Val.Added Tons ofHH Val.Addsd Tons
- Year1 9,375 0.14 1,022 9,583,333 148 - Year2 18,150 0.29 1,02219,166,667 296 Year3 28,125 0.43 1,02228,750,000 444 - Year4-15 37,500 0.58 1,02238,333,333 592
ACCRUINGTOTRANSPORTERS
EconomicCosts w/o w/p VOCLight Goods Veh. 122 69CEDIS/TON-KN Headloading 900 900CEDIS/TON-KM
Fares(Farm to Market) LightGoods Vehicle 150 150CEDIS/TON-KW Headloading 2,308 2,308CEDIS/TON-KM - 163 - Annex 5-1 BenefitstoTransporters Between Farm and Parket Table 6 (toaccount for 15% less headloading whenpoor to good access, or 10%when fair to good)
FaresPaid EconomicTransp. Costs Benefitsto w/o w/p w/o w/p Transporters - Year1 6,653,0576,080,153 4,031,662 2,676,292 782,465 - Year2 6,653,0576,409,193 4,031,662 2,821,126 966,673 - Year3 6,653,0576,738,234 4,031,662 2,965,959 1,150,880 - Year4-15 6,653,0577,067,275 4,031,6623,110,793 1,335,087
PARTIII. EconomicRate of Return (economiccosts) EconomicCosts Benefitsto Benefitsto Net Rehab.Per. I Rout. Farmers TransportersFlow
- Year1 27,807,0002,325,000 9,583,333 782,465 (19,766,201) - Year2 0 2,325,00019,166,667 966,673 17,808,339 - Year3 2,325,00028,750,000 1,150,880 27,575,880 - Year4 2,325,00038,333,333 1,335,087 37,343,421 - Year5 2,325,00038,333,333 1,335,087 31,343,421 - Year6 17,437,50038,333,333 1,335,087 22,230,921 - Year7 2,325,00038,333,333 1,335,087 37,343,421 - Year8 2,325,00038,333,333 1,335,067 37,343,421 - Year9 2,325,00038,333,333 1,335,087 37,343,421 - Year10 2,325,00038,333,333 1,335,087 37,343,421 - Year11 17,437,50038,333,333 1,335,087 22,230,921 - Year12 2,325,00038,333,333 1,335,087 37,343,421 - Year13 2,325,00038,333,333 1,335,087 37,343,421 - Year14 2,325,00038,333,333 1,335,087 37,343,421 - Year15 2,325,00038,333,333 1,335,087 37,343,421
NPV 25,279,09131,511,586 242,389,697 9,209,525 194,808,545
ECONOMICRATE OF RETURN 121% B/CRATIO 4.4
PARTIV. SENSITIVITY ANALYSIS Percent Change ERR Considering: - IncreaseinCosts 20% 94% - ReductioninBenefits 20% 89% - Inc.Costs and Red. Benefits AsAbove 70% a H E - H~~~~: ---
H H 44 44 4. M .4M.
e. ~~CeEO-H------e- s ro.- 9 50 0 C------0- 4 In C M- - Mf- r ------I4eC. 4-l 54 l-e ------Hi-- M ------
RE-M.- am cOc-4.OHO ------4 ZZS z~~~~a---- a4-n-eea . 5U..oa-ac.n .....
H H a* - o~~~~~~~~== ------=== 4 ------I CC - e- - - O------. 4 H4 y ---- - C3 ------
.1ws;6M,------
H H -- --- ** - M--0~~~~~~ - - -*M
:10 H HCC .... e . ~ ~ H ~H ~~~~------~ ~~~~~~H C if4 H - 44 4 44 4 *4------4~-- H fl H * ~------e--a H------H~ 4 0 4. 4.4.4. 4 144 4 b 0 4 .. 4
H e .1..- a n na o . c n ecinaec tme .004 ea-cc.a. ,S .a.e o e,... .e.cm,-. e -
He*. H...*...... Ce H 0 H ine------e .n on.e . as am.a Oa------e oc c a *e---- c-0 -M- * ----- m.cs-0-- ,1).cee.4 ~ ~~~~ - 165 -
Listing of Phase 2 (1,140 km) Feeder Roads
ANNEX 5-2 Table 2
NPVCOSTS NPVBENEFITS LENGTH RENR MIhT. M6RIC. TRAMSP. 8/C mN Wl (RN) POP. (0'OOO) (0'000) (W'OOO) (0'O0) ERRRATIO
ROADDISTRICT: CAPE COAST
1 O8OSOIASI-FANTINYANKOHASI 1.65 5.628 3,613,364 914,458142,717,919 120,804 222% 3) 5 2 DOIINASEJN-DONINASE 2.40 2,015 6,485,7407,492,054 74,780,552 81,274 85% '.4 3 FOSUANSA-ANANDOR 5.00 3,438 15.875,4553,704.161 156,001,718 190,724 77% :.0 4 ODUNASE-A8AKAANPA 6.40 4,131 12,828,6094,535,989 107,080,402 95,955 67% 6.2 5 NO.9VILLAGE JN-NO.9 VILLAGE 1.95 779 5,726.6361,105,647 38,830,416 186,301 59% 5.7 6 JANAA-ADDADAN 9.20 2,186 24,208,1825,216,388 158,683,632 858,567 57% 5.4 7 ASSINAFAN JN-ASSIN AFFAW 5.20 3,021 21,375,49119,510,107 124,580,724 68,580 49% 3.0 8 JUNKWA-KRO08 6.60 3,214 13,001,40024,807,743 85,446,335 181,801 49% 2.3 9 NYANEANIJN-NYANEANI 1.80 489 2,399,7271,020,598 12,777,022 6,018 46% 3.7 10 ASEBUJN-NYANEDON-ASOMDWEE 17.50 8,464 23,779,99665,620,075 161,678,578 15,919 45% 1.8 11 ASIKUNA-A8UAKWA 5.00 3,781 9,021,0363,543,742 44,767,219 4,723 44%, 3.6 12 ANDOE-ADADIETAN 6.90 5,615 18,441,63625,022,209 100,678,578 5,040 44% 2.3 13 APERADE-ANANFUPONS 11.20 2,010 17,956,6367,937,981 83,825,455 21,475 41% 3.2 14 JUKWA-NATRESO 3.70 483 5,931,3642,097,895 24,783,992 202,754 39% 3.1 15 EFJTU-ANKAASEJN 7.00 6,668 66,729,63666,223,821 303,732,079 24,522 38% 2.3 16 EWURABOJN-EWURABO 1.30 520 4,144,5004,057,889 16,640,940 21,276 34S 2.0 17 NYANEDON-NENSUKNA 5.20 2,550 13,091,33616,232,783 48,843,919 34,844 29% 1.7 18 OLDEBU-ABUENU 3.60 963 5,836,5092,039,812 17,583,949 92,151 29% 2.2 19 APOLININGO-APOLINGOJN 10.00 1,600 14,908,3365,667,705 45,387,308 42,322 28% 2.2 20 ASURA-WIANGA 4.30 1,309 9,264,5453,047,618 25,891.611 4,651 27% 2.1 21 JABOUR-ANKAASE 12.60 4,483 55,153,81841,540,286 146,503,015 24,522 22% 1.5 22 PAPADJANJN-TSETSEKASINU 3.40 584 7,301,9362,406,287 16,063,481 85,817 21% 1.7 23 8ANTANA-ESSANANJN 5.30 3,236 7,708,00021,853,810 31,045,809 5,962 141 1.1 24 ADADIETAM-EDUBIASE 22.30 7,898 62,697,09185,674,924 149,210,775 33,78S 11% 1.0
Sub-TotAl 159.5075,065
1 TONFOKRO-FRAIS 4.80 1,801 22,757,33318,009,518 38,234,493 79,835 8% 0.9 2 AKOARUSA-ANISAIUW 1.70 532 3,405,4551,204,872 3,943,567 7,000 7% 0.8 3 BRE8IA-E8UJN - 5.50 1,394 13,231,48217,169,290 25,460,093 25,488 2% 0.8 4 UROFOYEDUA-hAIIEN 27.20 1,843 79,352,364120,085,863 103,271,715 179,409 -53% 0.5 5 AFRANGUAJN-AYELDU 16.80 1,986 15,802,81874,170,680 50,544,196 38,756 -63% 0.6 6 EQUASI-EKROFULJN 9.50 1,200 17,326,48235,643,383 21,637,793 10,227 -67% 0.4 7 A8URANSA-KAFODZIDZI 5.40 1,031 21,842,24520,262,089 9,963,793 9,710 -73% 0.2 8 KAKOnDOJN-ASE8U JN 15.80 1,600 41,928,71859,285,373 28,850,391 12,190 -73% 0.3
Sub-Total 86.70 11,387
--- - .-- -,- . -..-- -.------..-- --.------..- -.--- --.------.-.- -..-- -.------166 -
ANNEX 5-2 Table 2
NPVCOSTS KW SEIEFITS LEH6TH REKM MINT. AGRIC. TUNISF. S/C WAD NNE (RN) POP. (4000) (*'000) (4tOO0) (4'000)Ell RATIO
ROADDISTRICT: 8EKWAI
1 APONYASEJN-APONYASE 4.00 2,216 8,328,2732,834,993 98,295,096 340,434 88t 8.8 2 SENFI-BROSANKO 4.00 2.119 9,333,4552,267,995 73,291,240 184,472 65% 6.3 3 HOSEASO-ADUAGYKRON 10.50 2,922 14,756,9097,430,884 110,446,488 310,753 60% 5.0 4 WURUYIE-KOTWA 8.00 3,404 17,956,37325,703,816 104,280,347 982,913 46% 2.4 5 KUtPESEJN-KANIA6O 9.90 4,612 19,542,4737,016,608 73,350,081 18,178 35% 2.8 6 AGYENKWASO-NSUAYEN 17.20 7,171 44,971,31853,693,052 187,184,154 861,636 34% 1.9 7 AHENSAN-KYEABOSo 18.90 5,213 44,084,90958,999,923 187,289,924 299,275 33% 1.8 8 SENFI-TWENEASE 4.00 3,096 18,018,09150,805,579 106,810,390 207,858 30t 1.6 9 ABODOH-ANKAASE-APAU 16.30 6,607 24,474,81856,650,730 118,288,510 241,515 30%, 1.5 10 FOIENA-AYAASE 2.70 496 6,152,2731,913,620 17,095,429 76,813 27% 2.1 11 NANSOAKROPONG-ADUNAN . 7.20 1,127 14,203,1825,102,988 37,572,i81 172,729 25t 2.0 12 HERIDANI-APENIIADI 13.30 3,076 40,325,7099,426,353 96,432,624 3,027,198 25% 2.0 13 NENANG-DOTON 10.00 3,812 24,894,5455,669,987 44,198,476 700,667 18% 1.5 14 SUNTAESURDJN-NTOBROSO 2.70 1,441 4,149,1821,530,205 7,270,679 4,532 15% 1.3 15 JUAPEASEJN-SUWRISO 3.70 184 5,476,3732,097,898 7,595,531 315,874 11% 1.0
Sub-Total 105.9036,835
I ABORE-JENINSO 4.50 1,901 9,269,0003,188,123 11,603,710 17,787 9% 0.9 2 NANSONIN-KUWPESE JN 13.60 4,803 38,846,82742,454,971 76,456,110 40,156 8% 0.9 3 8OJAWE-HOMASE 9.30 4,823 31,110,90929,031,708 47,421,404 6,363 2% 0.8 4 FUNSO-ABOABONO.1 17.30 942 32,291,90912,261,346 28,563,156 335,008 2% 0.6 S BEKrEREJN-BEKYERE 1.20 92 2,819,364 680,398 1,179,15252,773 -8% 0.4 6 ANYASOJN-ANASO 11.20 579 34,557,8187,934,800 13,251,975 424,270 -9% 0.3 7 SUBINCANP-ANWIUIA 5.00 400 13,116,6362,834,993 4,671,081 178,679 -10% 0.3 8 APENINADI-DA_ 12.00 989 39,300,27337,457,199 17,059,214 3,017,234 -71% 0.3 9 ANTOAKRON-PAIf-(TfMDE) 22.00 523 31,485,27397,128,271 23,955,652 53,883 -90% 0.2 10 8EKWAI-JACOSUJi 17.75 3,476 18,009,23668,441,835 14,124,992 185,066 -90% 0.2
Sub-Total 113.8518,528
------…--- - - 167 -
ANNEX 5-2 Table 2
NPVCOSTS m OsE TS LEHCTN EMNR HINT. mUIC. T111. 8/C mm0WE (aN) POP. (4'000) ( '000) (¢0OO0) (0000) En RATIO
ROADDISTRICT: HAtPONG
I AKROFUSO-APPAH 8.70 4,816 20,520,54532,644,477 427,542,039 336,041 133t 8.0 2 APAAH-KYEKYEWERE 1.70 1,049 4,347,9451,204,872 81,888,092 85,840 125t 14.8 3 ASONOCAS0-80NWIRE 6.90 5,721 5,289,4554,890,363 62,838,147 7,081 82% 6.2 4 DOII-EJURA 21.80 3,096 26,846,27315,450,713 126,379,574 151,274 40t 3.0 5 ANKAASE-SWEDRU 8.40 5,369 15,807,72731,518,806 85,282,828 6,174 38% 1.8 6 NORASO-SEKRUWA 2.70 551 1,958,5458,428,560 13,993,722 104,903 38% 1.4 7 ASOKOREJN-AHENSAN 10.20 3,165 12,319,76438,272,835 73,063,329 9,389 35% 1.4 8 ANOAKO-AGONA-EFFIDUASE 31.2S 7,440 85,545,664115,5671,070 283,675,181 590,201 24t 1.4 9 PEOASE 25.45 3,997 61,022,273112,359,750 210233563 4462476 20t 1.2 10 ANKANADUA-A8OTREYE-NANTWEWOSE7.70 1,269 8,512,6363,233,967 14,882,582 634,545 16%, 1.3 11 AFRAANSO-ANYNOFI 47.50 3,417983,195,945 33,665,545 146,572,249 1,032,922 15% 1.3 12 SWEDRU-FANODE-IANPONITENIE-AHODNO13.80 6,027 30,184,90956,353,405 93,472,327 6,516 14% 1.1
Sub-Total 186.1045,979
I KNANANS-DUAPORUKO 5.00 2,000 12,847,6732,834,993 8,625,318 20,071 0% 0.6 2 ASOKOREJN-SINNA 8.00 1,103 25,220,90935,319,371 218,069,038 32,436 -1% 0.8 3 AGONA-ADUKRO-SUKO 16.50 3,197 30,318,09111,694,347 23,345,197 10,385 -1% 0.6 4 JEDIAKO-DROSONSO 12.15 174 19,507,5456,889,034 11,737,716 1,766,018 -3% 0.5 5 ABIREN-ASOVONASO 9.30 2,357 28,657,35552,096,073 58,599,505 53,273 -27t 0.7 6 *OSONCHECHE-SONIUSA 7.75 1,302 4,594,36428,104,655 22,171,472 13,843 -57% 0.7 7 8EPOAJN-A6ONA 4.80 745 14,426,54521,191,623 5,626,047 15,182 -88% 0.2 8 TETRENJN-BEPOASE-WIANOASE 14.70 986 46,998,93664,899,345 16,334,529 235,315 -89% 0.1 9 VIANOASE-TETREN 10.60 116 27,694,09139,770,539 7,446,166 193,939 -98% 0.1
Sub-Total 88.80 11,980
------168 -
ANNEX 5-2 Table 2
Nm CeOss WV UEITS LENGTH mm Min. AGIC. TRN. 3/C flNIUE (RN) PO. (*'O00) (0'°°°) (e'00O) (¢'000) EI llNTO
ROADDISTRICT: SUNYANI
1 SUNUNA-PONAKRON 10.50 2,634 15,667,8187,441,857 623,015,092 4,682,204 223% 27.2 2 GOANCANP-GOATIFI 1.60 866 5,419,700 907,198137,711,639 319,018 159% 21.80 3 SUSANNO-SANTAASE 13.90 1,458 16,515,90043,391,478 89,702,199 1,846,215 35t 1.50 4 NIN-NONTWI 12.00 500 32,867,0278,504,980 78,692,365 1,320,136 24% 1.90 5 SANKORE-NKAVIE 8.50 363 14,167,6823,118,493 30,041,453 1,214,251 22% 1.80 6 NANSIN-AHVEREWAN 12.00 2,718 16,978,6478,501,592 40,058,820 14,406 20% 1.60 7 DUAYAVNKWANTA-WONAH-DNENASE 20.70 2,135 43,193,45514,671,090 88,322,774 1,707,352 19t 1.60 8 BUKRU-KRUWA-AKOKOAMAN 3.90 546 8,629,5642,211,295 16,725,418 195,230 19% 1.60 9 KENYASINO.1-KHAHU 15.30 289 23,262,45510,843,849 45,903,880 2,581,393 18% 1.40 10 NKASIEN-ASUBINA 4.80 595 13,006,4422,721,594 17,605,195 188,985 12% 1.10 11 NYANE8EKYERENO.2JN-NYAAEIEKYERE 2.90 121 8,391,4362,054,540 10,813,447 46,135 11% 1.00 12 NEHAHEJN-NOUEKAW 33.00 5,564 67,619,273123,823,819 191,397,780 250,782 10t 1.00 ...... ---- Sub-Total 139.1017,789
I KUSAWUDIE-GANBIANO.1 19.00 962 25,712,86413,466,218 36,063,057 191,157 8t 0.90 2 AYONSO-8EREKIUH 20.80 764 20,183,90914,741,965 26,230,236 89,481 3% 0.80 3 WAHAHENSO-BARNIE 6.70 998 11,659,95520,915,317 18,333,353 179,665 -52% 0.60 4 KOKOFUJN-KWANE PUA 19.40 1,621 68,895,05572,793,432 60,843,554 724,346 -54% 0.40 5 SECHEN-SRENI 6.30 664 21,185,45523,637,201 9,896,398 25,587 -77% 0.20
Sub-Total 72.20 5,009
------. -- -. . ------.------169 -
ANNEX 5-2 Table 2
MNCUSTS NH EIEfITS LENGTH EIEm MINT. R6IC. TV1"SF. liC WA NHE (IN) P0. (t'°00) (¢'OO) ($'000) ($'000) En ITIO
ROADDISTRICT: TECHINAN
I JENA-ANANTEN 4.00 3,777 55,100,000 406,000,00058,300,000 99% 8.43 2 SRAPEKRON-NIFRAHFADWENU 1.20 1,085 14,200,000 85,700,000600,000 78% 6.08 3 YANKYERA-BAEDINO.2 2.20 1,435 29,500,000 154,200,00022,100,000 77% 5.98 ; 4 TANO8OASE-KRANKA-YEFRI 15.30 6,291 188,700,000 676,200,00097,100,000 58% 4.09 ! 5 JENA-ANPONA 4.00 5,598 42,400,000 152,400,0001,400,000 54% 3.63 6 FAANA-AGOSA-AKROFUON 7.00 3,860 96,400,000 292,600,00053,100,000 51% 3.59 7 NSUTA-GYANKRON 5.40 1,880 70,000,000 198,900,00030,300,000 47% 3.27 8 DROSOSO-TADIESO 4.40 1,704 60,600,000 147,100,00026,400,000 42% 2.86 9 ASANPANAYE-NPEI-ASUOSO 4.20 1,267 56,000,000 136,200,00019,600,000 40% 2.78 10 NKWAESOJN-NIMAESO 1.40 500 17,800,000 37,800,0006,900,000 38% .2.51 11 NSUTA-SERESO 4.70 1,575 54,500,000 124,400,000900,000 35t 2.30 12 TECHINAN-TRAA 5.00 1,135 63,500,000 120,100,00018,300,000 32% 2.18 13 OSUNASI-TINIE8U 5.00 1,357 58,000,000 1U8,900,000700,000 28% 1.89 14 BONSU-DOTO8AA-AGYEIKRON8.80 2,171 120,400,000 233,300,0003,300,000 28% 1.96 15 TANOSO-ASUDROFO 6.70 2,015 89,900,000 159,200,0001,100,000 25t 1.78 16 ASEKYE-TON(NKWATEDE) 7.20 2,235 83,500,000 133,300,000900,000 23% 1.61 17 BOASEJN-BOASE 4.40 916 60,600,000 79,100,00014,200,000 21% 1.54 18 NNOASE-NEHIRAA 12.60 2,586 173,600,000 223,300,00040,000,000 21% 1.52 19 ASANTAN80NKWANTA-ASANTANSO 6.20 1,139 73,400,000 90,000,000600,000 16% 1.23 20 8RAHOHO-NSUNESA-DONPOASE24.00 4,318330,600,000 344,900,00049,500,000 14% 1.19 21 NKOSIA-NFRARESU 3.00 1,652 31,800,000 35,100,000400,000 14% 1.15 22 NAKYINNA8RE-ANAWA-YEREPENSO17.70 1,974243,800,000 212,200,00030,500,000 10% 1.00
Sub-Total 154.4050,470
1 NAANPHIA-DENTEKU 3.50 1,313 37,100,000 35,200,000300,000 9% 0.95 2 AFREFRESO-IEN 7.80 850 98,500,000 68,700,00010,700,000 4% 0.81 3 NTANKORO-NTANUJW 4.70 320 61,300,000 24,400,0004,900,000 -2n 0.64 4 OLDLONGORN- WLOM 19.00 1,265 261,700,000 136,000,00019,500,000 -3t 0.59 5 NNOASEJN-31 SE 8.20 2,606 86,900,000 57,000,000 0 -4% 0.01
Sub-Total 43.20 6,354
...... _....------170 -
ANNEX 5-2 Table 2
NPVCOSTS NPVBENEFITS LENGTH KEHMS HINT. ACRIC. TRISSP. 8/C 10S mmZE (SN) POP. (W'OO0) (¢'000) (¢'000) (0'000) ERI RATIO
ROADDISTRICT: HOHOE
1 OSRAHANIJN-OSRAHANI 1.60 2,145 8.7 551.0 3.4 198%67.00 2 NEWAYONA-DZOLU 5.00 2,863 27.8 88.9 1.9 101%3.20 3 8ONWIREJN-8ONWIRE ANANFRO 2.80 2,361 181.0 53.9 2.8 73% 3.10 4 KWAIEKROM-OKADJAKRON 21.00 6,700 110.2 153.0 3.8 48% 1.40 5 APESOKU8I-TAKRABE 5.00 3,226 53.0 147.3 3.1 44% 2.80 6 OHIANANKYENEJN-OHIANANKYENE 7.00 1,776 37.4 45.6 2.8 38% 1.30 7 BANDA-8ORAAHENFI 7.00 6,825 84.3 186.5 21.5 37% 2.40 8 TAPAABOTOASE-4TONKORGUAMAN15.00 4,004 78.7 91.4 2.3 32% 1.10 9 DOSVEKOFE-TAPAANANYA 3.80 1,713 40.2 76.3 1.6 30t 1.90 10 lOl010KUNASI-LIKPENATE 11.00 4,145 70.0 96.8 0.6 29% 1.30 11 ASATO-APESOKU8I 5.50 3,176 75.8 145.1 3.1 28% 0,50 12 LIKPENATE-DZOLU 10.00 4,677 119.0 213.1 4.5 27% 1.80 13 KPENE-TAYI 5.00 2,609 68.9 125.2 2.6 26% 1.80 14 BODADA-KUTE 16.00 6,872 194.2 306.2 6.5 23% 1.60 15 FIAFE-DAFOR ' 00 2,483 42.1 58.0 1.0 22% 1.40 16 KUNDA-ADUNADIN 1.80 868 19.0 23.7 2.7 20% 1.30 17 8REHANIASE-PUSUPU 9.40 2,419 49.2 49.60 1.30 16% 1.00 18 AKPAFU-NENPEASEN-TODZI 3.50 2,207 42.2 51.50 1.10 16% 1.20 19 DZOLU-KUTE 14.60 4,885 187.0 222.60 4.70 15t 1.20 20 SOKPOJN-NEH AYONA 5.00 3,343 61.8 68.70 1.43 13% 1.10 21 DODIPAPASE JN-A40Q0A 22.00 5,727 243.9 261.60 5.50 13% 1.00
Sub-Total 177.0075,024
1 K#AKU-KPETSU-BATOB 6.50 1,999 68.80 513.00 0.32 3% 0.70 2 AKANIAN-SEJANSrJ 15.00 3,324 206.60 909.00 10.70 -10%0.49 3 ARUBEJN-BATOI 13.-0 1,999 137.70 68.30 7.90 -12%0.50 4 NKWATA-SHARE 7.50 1,423 88.90 38.80 0.80 -20%0.40 5 NONKRA-TNERES 5.00 488 60.70 14.60 1.70 -57%0.20 6 ABUDJURO-DADEFRO 34.00 251 53.00 12.00 0.10 -67t0.20 7 DJIG6EJN-DJI6BE 6.40 226 67.80 10.80 0.20 -76%0.20 8 FESIJN-FESI 5.50 191 58.20 9.20 0.20 -76%0.20 9 KWEKU-GYAESAYOR 5.00 198 68.90 5.40 0.60 -84%0.08
Sub-Total 97.90 10,099
-- - . ------.- - - - . ------17 1 -
ANNEX 5-2 Table 2
Nm COSTS NPm8EEFITS LENGTH REN NAINT. AGRIC. THISP. 8/C DW N*" (II) POP. (4'000) (¢'000) (¢'°°°) (4'000) EIl RATIO
ROADDISTRICT: TAMALE
1 YEJI-ABRUNASI 5.50 16,057 63.80 1,268.50 7.50 195t20.00 2 TOLONSAVELAGU 3.50 37,893 257.60 446.90 2.10 34t 1.74 3 NAJONG-YUNYO-OUNKURUDU 22.00 10,977 233.00 459.00 0.70 31t 1.97 4 PONGTA"ALE-ZAWGU 15.00 6,366 193.90 293.50 1.60 21% 1.52 S NUASIA-JANGA 26.00 6,907 218.70 288.80 0.50 20t 1.32 6 SAWA8A-ABAUNASI 5.00 1,236 55.20 73.80 0.10 18% 1.34 7 NANTUGU-IANGBELUNG 23.10 6,533 188.00 227.70 1.40 17S 1.22 8 LA8ARGA-TU6U 8.00 1,331 67.30 81.80 0.50 17t 1.22 9 SANKPALA-WANBONG 8.00 1,719 100.70 118.90 0.70 14% 1.19 10 TALI-KULI 30.00 6,166 260.50 284.30 1.70 13%,1.10
Sub-Total 146.1095,185
I TALI-ZAG6A 10.00 2,034 82.30 70.90 0.10 4% 0.86 2 KOLOFUJN-KOLOFU 27.40 4,140 436.90 286.30 1.70 -2t 0.66 3 KPAL8E-CHANAYILI 11.00 1,214 142.50 74.60 0.40 -8% 0.53 4 YOGU-WUN8U 10.00 1,608 80.50 56.00 0.10 -9% 0.70 5 GBOORANIJN-GOORNANI 5.00 2,102 39.80 24.80 0.10 -25%0.60 6 YAPALA-ZOGOA 48.00 1,926 213.60 100.70 0.20 -71%0.47
Sub-Total 111.4013,024
------172 -
ANNEX 5-2 Table 2
NP-COSTS NPV6EEFITS LENGTH REHI HAINT. AGRIC. TRANSP. B/C NM IN! (M) POP. (4'000) (¢0OOO) (¢'00) (4'0OO) ElS RATIO
ROADDISTRICT: TUMU
G6WOLU-KUSALE 8.80 3,695 74.00 161.30 3.00 40% 2.20 2 TUHU-KASANA 18.30 7,091 252.10 309.50 6.00 16% 1.35
Sub-Total 27.10 10,786
1 WELLEIBELLE-HALENBOI 16.00 2,870 220.40 125.30 2.40 -4% 0.57 2 NASUGUDELLE-YUGANTU 10.40 1,354 121.50 59.10 1.10 -14%0.50 3 DONOYELE-DJARHA 17.10 1,833 167.10 80.00 1.50 -30%,0.49 4 BUGUBELLE-SENTIE-JHANG 12.40 1,824 116.70 34.10 0.10 -63%0.29 5 G6OLU-JEFESI 25.60 4,786 144.80 51.90 0.20 -72%0.35
Sub-Total 81.50 12,667 - 173 -
ANNEX 5-2 Table 2
NPVCOSTS NPY BENEFITS LENGTH REHAS MINT. A61iC. TRANiSP. B/C ROADNANE (RN) POP. (*000) (O0oo0) (4'000) (f'OOO) ER2 RATIO
ROADDISTRICT: YENDI
I GULKPEGU-YENDI 6.40 38,853 53.80 346.00 0.50 98% 6.44 2 JAKPA-CHEREPONI 5.70 3,394 47.90 86.60 0.50 32% 1.82 3 KPACHIYILI-ADIBO 2.70 2,754 22.80 133.70 0.10 24% 1.48
Sub-Total 14.80 45,001
I TOLON-DJONAKAYILI 30.00 4,758 388.70 156.90 0.90 -21% 0.41 2 LAANA-KENYANG 4.00 1,501 34.40 184.00 0.00 -34%,0.50 3 SANG-PALARI 28.60 4,069 331.60 87.80 0.10 -59% 0.27 4 DOG9AN-JINAN 9.00 833 95.30 27.50 0.20 -59% 0.29 5 KYALE-TAfPOYE 10.00 1,126 108.50 23.60 0.00 -68% 0.22 6 SAB00A-WENCHIKI 67.60 8,025 881.90 154.10 1.10 -69% 0.18 7 KPABIA-JEGBUNI 18.00 1,077 247.90 25.80 0.10 -80% 0.10 8 GBNOIRE-WANJOGA 48.00 2,318 604.50 41.80 0.10 -90% 0.07 9 TIKARE-KATARE 30.50 825 256.50 20.50 0.00 -98% 0.08
Sub-Total 245.70 25,332
Total 2,051 566,514 - 174 -
Annex 6-1
REPUBLICOF GHANA
NATIONALFEEDER ROADS REHABILITATION AND MAINTENANCEPROJECT
Documents in the Project File
Project Files
1. Schedulefor Processing Procurementand Implementation, October 1991, Departmentof Feeder Roads and World Bank D57343
2. InstitutionalStudy of the Departmentof Feeder Roads, October 1990, COWI-Consult,Denmark (P. Taylor). D57344
3. EnvironmentalImpact Assessment,August 1990, Associates In Rural Development, USA (S. McCormick). D57345
4. Local Organizationand Finance for RoutineMaintenance of Feeder Roads in Ghana, March 1991, Associatesin Rural Development,USA (K. Ellison). D57346
5. InstitutionalArrangements for SustainableRoutine Maintenance of Feeder Roads in Ghana, July 1991,Associates in Rural Development, USA (E. Connerley). D57347
6. Consultancyon the Labour-BasedCoimponent, April 1991, InternationalLabour Office, Switzerland(A. Coleman). D57348
7. Socio-EconomicEvaluation of Feeder Road Rehabilitation, March 1990, Clive Daniels, UK and Ghanuxim,Ghana. D57349
8. Socio-EconomicEvaluation of SelectedFeeder Roads, May 1991, Ghanexim EconomicConsultants, Ghana. D57350
9. Socio-EconomicEvaluation of SelectedFeeder Roads, May 1991, ComptranEngineering and Planning Associates,Ghana. D57351
10. The Poverty AlleviationComponent, July 1991, United Consultants Ltd, Ghana. D57352
11. Rural Road Sub-SectorStrategy Paper, June 1991, Departmentof Feeder Roads and World Bank. D57353
AF4IN November 1991
(ListFile.NFR) MAP SECTION BURKINAFASO
PUlim:k. GHANA NATIONALFEEDER ROADS REHABILITATIONAND Bafi .t '~~~~~\ned-o bMAII INTENANCE PROJECT rRoDuGlt,N c9 UPPER - ' X- Lusng \ \ \ TransportSyste \WESTi'SEP.Xi 1n, - ProjectlnosioZones, '' \/ and ConservationReserves WA_ | * _ ~ w / , f NORTHERN g5u Korogo /PROJECT ZONES
7 ROADAREAS bw {_ \ * . ~~~~~~~~~~~<} \ og _ h~~~~~~~~~Saobo D o b o y o, Septegui PHASEiROADS Daboya, dg \ PHASE11 ROADS a hcZrogs 6 U ~~~~~~PHASEII TO BESFLECTED ~~ROADSLCE
S 9 . ^ toleDamongo l < t \ ! ,; , tJ NATIONAL*ARKS
GAME PRODUCTIONRESERVES
COTE\ SANCTUARIES C6TE D'IVOIRE) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~PRIMAARYROADS aTPiMwoD
MAJORSECONDARY ROADS
MINOR SECONDARYROADS Barn 0* P~~~~~~~~~~~~~~~~*AILROADS
~~~~~~-oRIVERS-
.- 'BR G-AHAFO Kqte ~~~~~~~~~~~~~PORTS
REGIONHEADQUARTERS
Bok. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~NATIONALCAPITAL
REGIONBOUNDARIES
JLX INTERNATIONALw N / r, BOUNDARIES_
_ ,O 70 30 4 0 MILLs {'ASHANTIa > ;1 @, '?%0 ) I I wo I fo no.*
7i
lTOGO
t; ; \ 0 L e \ CAPEKuaosa COAST (Phase21 Set.- s ) TalsDnkwo Dnahase 3) 5..1 Wol5tAlp WaCIalo(Phosase 2) ahokr,d, (Phase 31 NkrCwkow(Phosrt 31