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Municipal Financing Alternatives for the Municipality of Sekondi-Takoradi

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Municipal Financing Alternatives for the Municipality of Sekondi-Takoradi Report No: ACS6678 . Republic of Ghana GHANA: Municipal Financing Alternatives for the Municipality of Sekondi-Takoradi Public Disclosure Authorized The use of sub national finance in Ghana . Supported by PPIAF . AFCW1 AFRICA Public Disclosure Authorized . Public Disclosure Authorized Public Disclosure Authorized Document of the World Bank . Standard Disclaimer: . This volume is a product of the staff of the International Bank for Reconstruction and Development/ The World Bank. The findings, interpretations, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Copyright Statement: . The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development/ The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA, telephone 978-750-8400, fax 978-750-4470, http://www.copyright.com/. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA, fax 202-522-2422, e-mail [email protected]. FINAL REPORT Municipal Financing to Face Urban Challenges of Sekondi -Takoradi, Ghana PPIAF Sub National Development Technical Assistance Program Transportation Challenges in Sekondi -Takoradi May , 2013 Transport Challenges in Sekondi Takoradi Metropolitan Assembly, Ghana 2013 The World Bank PPIAF Sub National Development Technical Assistance Program Transportation Challenges in Sekondi-Takoradi Kwasi Bosompem Fernando de Mergelina Kwasi Apenteng Ricardo Figueroa Ricardo Montes Ana Cristina Mejia de Pereira May, 2013 1 Transport Challenges in Sekondi Takoradi Metropolitan Assembly, Ghana 2013 List of Acronyms CBD: Central Business District DA: District Assembly DACF: District Assemblies Common Fund DFR: Department of Feeder Roads DUR: Department of Urban Roads DVLA: Driver´s & Vehicle Licensing Authority GHA: Ghana Highway Authority GRFS: Ghana Road Fund Secretary GTTC: Government Technical Training Centre GUMPP: Ghana Urban Management Pilot Project HIPC: Highly Indebted Poor Countries IDA: International Development Agency IGF: Internally Generated Funds MLGDRE: Ministry of Local Government and Local Development MMDAs: Metropolitan, Municipal and District Assemblies MMTL: Metro Mass Transit Limited NDPC: National Development Planning Commission NHS: National Health Service NRSC: National Road Safety Commission PPIAF: Public Private Infrastructure Facility PPP: Public Private Partnership SIF: Social Investment Fund SNTA: Sub National Technical Assistance SPV: Special Purpose Vehicle STCCI: Sekondi Takoradi Chamber of Commerce and Industry STMA: Sekondi-Takoradi Metropolitan Assembly 2 Transport Challenges in Sekondi Takoradi Metropolitan Assembly, Ghana 2013 INDEX Executive Summary. ...................................................................................................................................................5 Introduction ............................................................................................................................................................. 10 I. Background ...................................................................................................................................................... 11 II. CHAPTER I: STMA Road Network, Transportation and Traffic Problems ........................................................ 14 III. CHAPTER II: Transportation Sector Regulations in Ghana. .............................................................................. 29 IV. CHAPTER III: STMA Current Financial Situation .............................................................................................. 36 V. CHAPTER IV: Financing the Proposals for Urban Road Network Improvement. ............................................. 53 Bibliography ............................................................................................................................................................. 69 Annexes ................................................................................................................................................................... 70 List of Tables Table 1: Suggested Intervention .................................................................................................................................6 Table 2: Sekondi- Takoradi Metro Revenue Performance (2010-2012). ................................................................ 38 Table 3: Composite Budget ..................................................................................................................................... 38 Table 4: STMA financial statements ........................................................................................................................ 40 Table 5: Total Revenue and Expenditure (2007-2012) ............................................................................................ 40 Table 6: Internally Generated Fund ......................................................................................................................... 42 Table 7: The STMA Composite Budget for fiscal year 2012 .................................................................................... 44 Table 8: Taxpayers .................................................................................................................................................. 44 Table 9: Total Property ........................................................................................................................................... 46 Table 10: Properties total increase (2012) .............................................................................................................. 46 Table 11: Lands ........................................................................................................................................................ 47 Table 12: Fees and Fines .......................................................................................................................................... 48 Table 13: Service Sector Statistics ........................................................................................................................... 49 Table 14: Rents ....................................................................................................................................................... 50 Table 15: Tax Management .................................................................................................................................... 51 Table 16: Estimated Net Increases ......................................................................................................................... 57 Table 17: Projected revenue ................................................................................................................................... 59 Table 18: Loan Projections ..................................................................................................................................... 59 Table 19: Cash Flow of SPV 1 ................................................................................................................................... 60 Table 20: Traffic related to the port ........................................................................................................................ 60 Table 21: Classification of Commodity Traffic ......................................................................................................... 62 Table 22: Vehicle type ............................................................................................................................................ 63 Table 23: Revenue Projections ................................................................................................................................ 64 Table 24: II Loan Projections ................................................................................................................................... 64 3 Transport Challenges in Sekondi Takoradi Metropolitan Assembly, Ghana 2013 Table 25: SPV II Cash Flow Projections .................................................................................................................... 65 Table 26: Action Plan, Implementation of short term works for the urban road network in Sekondi-Takoradi .... 66 Table 27: Schedule. ................................................................................................................................................. 68 Table 28: Annex I ..................................................................................................................................................... 70 List of Images Image 1: Meetings with Authorities .......................................................................................................................
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