ghana follow-up study of the joint evalua- tion of … · 3.1 recommendation 1 - monitoring and...

GHANA FOLLOW-UP STUDY OF THE JOINT EVALUA-TION OF THE ROAD SUB-SECTOR PROGRAMME 1996-2000 NEA TRANSPORT RESEARCH MINISTRY OF FOREIGN AND TRAINING AFFAIRS OF DENMARK January 2006 EVALUATION DEPARTMENT

© Ministry of Foreign Affairs of Denmark January 2006 Production: Ministry of Foreign Affairs of Denmark Graphic Production: Designgrafik A/S, Copenhagen ISBN: 87-7667-385-5 e-ISBN: 87-7667-386-e ISSN: 1399-4972 This report can be downloaded from www.evaluation.dk This report can be obtained free of charge by ordering on www.evaluation.dk or from DBK Logistik Service Mimersvej 4 DK 4600 Koege Denmark Phone: +45 3269 7788 Contact the Evaluation Department: [email protected] Ref. No. 104.A.1.e.50 This report has been prepared by NEA Transport Research and Training. The find-ings, conclusions and interpretation expressed in this document are those of NEA Transport Research and Training alone and should in no way be taken to reflect poli-cies or opinions of Government of Ghana and the donors involved in the Ghanaian road sub-sector.

TABLE OF CONTENTS

TABLE OF CONTENTS Page

EXECUTIVE SUMMARY i

1 INTRODUCTION 1 1.1 Background 1 1.2 Objective of the 2005 follow-up study 1 1.3 Scope of the 2005 follow-up study 1 1.4 Procedure of the 2005 follow-up study 2 1.5 Outline of this report 3

2 OBSERVATIONS 4 2.1 Background 4 2.2 Current developments 5

3 MONITORING AND EVALUATION 7 3.1 Recommendation 1 - Monitoring and evaluation of RSDP 7 3.2 Recommendation 2 – Develop a self-monitoring system 10

4 INSTITUTIONAL CAPACITY AND HUMAN RESOURCES DEVELOPMENT 12 4.1 Recommendation 3 – Pursue reorganisation of the road sub-sector 12 4.2 Recommendation 4 – Develop a balanced training programme 15 4.3 Recommendation 5 – Follow cautious approach towards decentrali-

sation 18

5 CLEARING THE BACKLOG 21 5.1 Recommendation 6 – Develop realistic ambition level of RSDP-

place priority on maintenance 21

6 INVESTMENT PRIORITIES 24 6.1 Recommendation 7 – Develop a common approach for feasibility

studies 24 6.2 Recommendation 8 – Prioritise road projects based on sound prin-

ciples 26 6.3 Recommendation 9 – Harmonise road standards 28

7 COST RECOVERY 30 7.1 Recommendation 10 - Further improve road fund performance 30

8 PRIVATE SECTOR CONTRACTING AND FINANCING 33 8.1 Recommendation 11 – Facilitate further private sector participation 33

9 FOREIGN TECHNICAL ASSISTANCE 36 9.1 Recommendation 12 – Focus foreign technical assistance on transfer

of knowledge and providing added value 36

TABLE OF CONTENTS

10 ENVIRONMENTAL AND SAFETY ASSESSMENT 38 10.1 Recommendation 13 - Increase priority of environment and safety 38

11 EXPENDITURE MANAGEMENT AND CONTROL 42 11.1 Recommendation 14 - Improve disbursement procedures to con-

tractors and donor releases 42

12 ROAD TRANSPORT REGULATIONS 45 12.1 Recommendation 15 - Put priority on axle load control 45

13 DONOR CO-ORDINATION 48 13.1 Recommendation 16 - Further improve donor co-ordination 48

14 CONCLUSIONS 51

Annexes 1. Terms of Reference including the 16 recommendations 2. Official Letter Ministry of Roads and Transport 3. RSDP Objectives as stated in the March 2001 Policy Letter and RSDP Perform-

ance Indicators 4. Meeting schedule field study 5. Overview ongoing studies in the transport sector 6. Policy Letter February 1996 7. Summary of Actions Taken Matrix 8. Summary of Effects Matrix

LIST OF ABBREVIATIONS

LIST OF ABBREVIATIONS AFD Agence Francaise de Développement AIT Agency Implementation Team ASROC Association of Contractors BOT Build, Operate and Transfer BPEMS Budgeting and Public Expenditure Management Systems CDF Comprehensive Development Framework DA District Assembly Danida Danish International Development Assistance DFID Department for International Development DFR Department of Feeder Roads DUR Department of Urban Roads DWD District Works Department EIA Environmental Impact Assessment EPA Environmental Protection Agency ESHS Environment, Social, Health and Safety EU European Union FTA Foreign Technical Assistance GHA Ghana Highway Authority GoG Government of Ghana GPRS Ghana Poverty Reduction Strategy GRF Ghana Road Fund GTZ Gesellschaft fur Technische Zusammenarbeit HDM Highway Development and Management Model HSIP Highway Sector Investment Programme IDA International Development Association I-PRSP Interim Poverty Reduction Strategy Paper IRR Internal Rate of Return JICA Japan International Co-operation Agency KfW Kreditanstalt fur Wideraufbau KNUST Kwame Nkrumah University of Science and Technology LGS Local Government Service MDBS Multi-Donor Budget Support MDG Millennium Development Goals MLGRD Ministry of Local Government and Rural Development MoFEP Ministry of Finance and Economic Planning MOT Maintain, Operate and Transfer MRT Ministry of Roads and Transport NRSC National Road safety Committee ODICT-P Organisational Development and In-Country Training Programme PIT Programme Implementation Team PRSP Poverty Reduction Strategy Paper PSP Private Sector Participation ROT Reconstruct, Operate and Transfer RPM Road Prioritisation Model RSDP Road Sector Development Program

LIST OF ABBREVIATIONS

RSEP Road Sub-Sector Expenditure Programme SME Small Medium Enterprises ToR Terms of Reference USA United States of America VOC Vehicle Operating Cost VOT Value of Time Exchange Rate US$1 - ¢9,200 (May 2005)

EXECUTIVE SUMMARY

i

EXECUTIVE SUMMARY

Background In the period March-November 2000 the Joint Evaluation of the road sub-sector in Ghana was carried out, focusing on the performance of the road sub-sector in the pe-riod 1996-2000. The evaluation was well received and still is considered a good exam-ple of how ownership of the evaluation process can be shared between donors and the recipient country. The Joint Evaluation report contains a number of recommen-dations (16) directed towards all actors in the sub-sector. In 2002 a follow-up study was carried out aimed at performing a systematic follow-up on the recommendations of the Joint Evaluation and to identify the constraining fac-tors preventing recommendations from being followed. Results were presented and discussed during the Annual Donors’ Conference in Kumasi. This Draft Final Report presents the preliminary results of the 2005 follow-up study; in which the focus is shifted towards assessing the effects of the implementation of the recommendations. The results will be presented and discussed at this year’s An-nual Donors’ Conference. Observations Historic perspective The recommendations as included in the Joint Evaluation of the Road Sub-Sector (2000), serving as the basis for this 2005 follow-up study, were based on an evaluation period 1996-2000. The point of reference for the Joint Evaluation was an official pol-icy letter produced by the GoG in February 1996, highlighting the various policy measures to which the GoG committed itself. This official policy letter illustrates that many of the subjects that were relevant in 1996 are in fact still on today’s road sub-sector agenda. At the same time, the last 10 years have shown clear progress in some of the policy areas. The 2005 follow-up study presents a historic perspective of the developments in the Ghanaian road sub-sector by linking the 1996 policy letter and the recommendations of the 1996-2000 evaluation period to actions taken up to 2005 and the effects of these actions. Dynamic environment The road sub-sector is part of a dynamic and changing environment. It is part of a broader transport sector, geared towards integration between the various modes of transport and moreover, it is a service sector, providing input for and creating condi-tions for socio-economic development of the country. Such a dynamic environment will bring along changes and new developments, e.g. emphasis on poverty reduction, Multi Donor Budget Support (MDBS), the new (road) transport sector programme. Setting for change and development In order to respond to the needs of the country and the demands that are placed upon the road sub-sector, a number of conditions regarding the institutional setting of

EXECUTIVE SUMMARY

ii

the road sub-sector needs to be met. These conditions include an open dialogue in-side and outside the sector on the role and position of (road) transport; strong leader-ship; a clear division of tasks and responsibilities between the ministry and the agen-cies and teamwork within the ministry and its agencies and with the donors. Throughout the period of review, starting with the 1996-2000 period of the Joint Evaluation, the response to above-mentioned conditions has varied, resulting in dif-ferent pace of change and progress. Findings and recommendations The sector is at a crossroad….

• The (road) transport sector in Ghana is currently at a crossroad. New devel-opments, such as the poverty reduction focus, bring along the need to clearly demonstrate the contribution of the transport sector to the Ghanaian socio-economic development. As a result, the traditionally inward oriented sector is forced to extend its focus.

• Donors, each at their own pace, are considering MDBS as an alternative for bringing direct funding to the sector. This process further reinforces the need to clearly illustrate the contribution of the sector towards socio-economic de-velopment and poverty reduction.

• The sector seems to be aware of the need to respond to new challenges and has launched a range of studies, i.e. the institutional study, the transport policy study and the transport and poverty studies. Furthermore, MRT has estab-lished a MDBS working group. It is critical that the sector not only has the ca-pacity to absorb the findings of these studies and initiatives, but takes owner-ship of the policy development process, clearly defining the way forward. The studies are supporting the policy development process; they are not replacing it.

The implementation pace of the sector programme is rather slow….

• As for the pace of implementation of the RSDP programme, the overall im-pression is one of missed opportunity. Consequently, achieved effects fall short of the envisaged effects.

• The slow pace of implementation implicates that there is certainly a basis for improvement. In most cases the underlying problems and the need for action, as well as the type of action needed are clear. The implementation, however, is often lagging behind. Looking at this positively, one could say that Ghana will get there; it only takes a bit more time. Being more critical, one could argue that Ghana is losing valuable time and energy by not taking full ownership and actively managing the implementation process.

The need for a monitoring and evaluation system is high….

• If the road sub-sector through its RSDP and future (road) transport pro-grammes fail to clearly indicate its contribution to national development objec-tives, such as poverty alleviation, through a well-functioning monitoring and evaluation system, the road sub-sector may risk a major funding reduction be-

EXECUTIVE SUMMARY

iii

cause of the introduction of the MDBS system. Turning the argument around, in order to prepare itself for the future, the sector should make an effort to de-fine indicators, linking the sector performance to Millennium Development Goals.

• The performance indicators, as defined within RSDP, are not used systemati-cally to monitor progress of the programme. The mid-term RSDP review fo-cused on the development of the road condition mix and additional indicators, failing to provide a comprehensive coverage of the stated RSDP performance indicators. Ongoing studies, such as the transport and poverty studies, may provide additional information towards RSDP completion.

• Some of the promising initiatives regarding self-monitoring that were launched at the beginning of RSDP, e.g. programme and agency implementation teams, have not yet been fully integrated in the operations of MRT and its agencies. Although Annual Review Reports are produced, as well as quarterly financial management reports and periodic road condition surveys, a systematic self-monitoring system is not in place. Lack of self-monitoring capacity makes pol-icy development an ‘ad hoc’ affair.

• MRT is one the pilot ministries selected for the implementation of BPEMS. Once operational, BPEMS will help to meet budgeting requirements for the three main sources of funding of the road sub-sector.

… and so is the need for institutional capacity building and human resources development….

• The retrenchment programme, which was scheduled for the RSDP implemen-tation period did not materialise and seems to have lost its momentum. Staff reductions are based on natural retirement, resignation, sickness and death and are relatively limited in size. The inability to launch the retrenchment pro-gramme leaves the sub-sector and notably GHA with a staff composition unfit for the job and a salary burden that restricts the organisation in attracting the appropriate staff. At the same time it must be recognised that the implementa-tion of the retrenchment programme, would result in unemployment for some of the staff involved.

• The need for training remains high. Training provides an excellent basis for strengthening institutional capacity and enhances transfer of knowledge. The share of training funded by donors is high. There is a clear tendency to con-tinue with overseas training, based on an apparent demand (need for training, instrument to retain staff) and supply (donors continue to fund training pro-grammes, contributing to transfer of knowledge policies as stated in the do-nors’ policies). The focus on overseas training may divert the focus on setting up a strong in-country training programme.

EXECUTIVE SUMMARY

iv

There is a need to clearly define investment prioritises…. • Not standardising the approach towards prioritisation of road works and leav-

ing this process up to individual parties, such as road agencies or donors, re-sults in a bias towards certain projects and possible sub-optimal road pro-grammes from a national perspective.

• The use of HDM-4 as the common tool for feasibility studies has certainly contributed towards harmonisation. The use of HDM-4, e.g. through input data, is not fully harmonised.

• The maintenance programme is not fully carried out, while rehabilitation ac-tivities are taking place and being funded from the GRF, implicating that maintenance is not given full priority. In the period 2002-05, routine mainte-nance was fully carried out. Periodic maintenance is combined with minor re-habilitation and minor upgrading works, making a clean assessment of periodic maintenance performance difficult. Achievement percentages on maintenance are below target, especially for GHA and DUR.

• DFR has gradually expanded its network through transferring parts of the so-called ‘non maintainable’ network to its maintainable network. As a conse-quence the size of the total network to be maintained has increased.

The Road Fund has broadened its financial basis, but fuel levies have not reached anticipated targets yet….

• The main source of revenue of the Road Fund, the fuel levy, has gradually in-creased over a 10-year period, i.e. from 60 cedis per litre in 1996 to a level of 600 cedis per litre in 2005. The strong deprecation of the cedi against the US$ from the year 2000 on have reduced the fuel levy in US$ to levels far from the envisaged US Cents 9.5, with a level of US Cents 2.4 in 2002. Recent increases in fuel levies up to a level of 600 cedis per litre in 2005 have brought the level at US Cents 6.5 per litre, which is almost at the same level as in 1998. The pre-sent policy is to have fule levies at US Cents 9.5 per litre in 2008.

• Top priority of the GRF should be to generate adequate funds to meet road maintenance needs on a sustainable basis and to provide funds on a timely ba-sis.

Environmental and Safety assessment needs to be integrated in the sector’s work….

• In May 2003 a review of ESHS issues in the road sub-sector took place. One aspect raised is the fact that ‘ESHS issues have tended to be implemented (and funded) as a result of donor conditionality without generating buy-in from the relevant Ghanaian institutions. Conversely GoG roads projects tend not to systematically budget for ESHS costs’. A possibly related issue raised is the fact that MRT is not taking a leading role in terms of policy and guidance of ESHS issues.

• As for road safety performance, road fatalities have increased, however, fatality and mortality rates have declined since the introduction of RSDP.

EXECUTIVE SUMMARY

v

Progress can be recorded in expenditure management and control…. • With tightened control on overspending, especially on development projects

(co)funded though the consolidated budget, and with the new Procurement Act in place, the arrears problem has been practically brought to a halt. Some smaller arrears could be building up in maintenance and/or minor rehabilita-tion works. However, these are relatively small arrears compared to those no-ticed in the beginning of the century.

The axle load programme is moving, but slowly….

• Slow progress in implementing the axle load programme has led a group of donors to strongly appeal for a structured approach towards the preparation of a policy document and action plan on axle load control. Preparation for the development of such a policy document and action plan started in 2003 and was followed by setting up of an Axle Load Working Group.

• Despite the newly found impetus, the implementation of the original pro-gramme is far behind on schedule. The policy document and action plan are aimed at the development of 29 permanent weighbridge stations.

Donor co-ordination has facilitated a policy debate, however, donors continue to work according to own procedures….

• Donors and GoG representatives continue to co-ordinate their activities through monthly, quarterly and annual meetings, supported through the dedi-cated donor co-ordination unit at MRT. Although persons, representing the donors’ organisations come and go, the spirit of co-operation remains. RSDP has provided a platform in which each donor can play its respective part.

• It should be noted that individual donors still continue to pursue the appraisal and review of their individual programmes. Furthermore, despite the Rome and Paris Declarations on harmonisation and alignment, donors continue to work according to their own specific requirements, e.g. in procurement or fi-nancial auditing and control. The above results in a continued high administra-tive burden on MRT and its agencies.

The way forward….

• Indeed the road sector is at a crossroad. External pressures placed upon the sector, such as the need to contribute to poverty alleviation and the advance of MDBS, could affect the sector positively or negatively, depending on the way the sector responds to the challenges. Challenges are several; to a large extent related to a more external orientation of the transport sector, e.g. through the creation of a monitoring system, based on performance indicators that dem-onstrate the transport sector’s contribution to national development objec-tives. By responding to these challenges the transport sector is able to argue its case and, at least to some extent, is master of its own faith. Not responding to the challenges could result in isolation of the transport sector and the sector missing out on (traditional) direct project or sector funding.

EXECUTIVE SUMMARY

vi

CHAPTER 1-INTRODUCTION

1

1 INTRODUCTION

1.1 Background

In the period March-November 2000 the Joint Evaluation of the road sub-sector in Ghana was carried out, focusing on the performance of the road sub-sector in the pe-riod 1996-2000. The evaluation was well received and still is considered a good exam-ple of how ownership of the evaluation process can be shared between donors and the recipient country. The Joint Evaluation report contains a number of lessons learned which were later translated into 16 recommendations directed towards all ac-tors in the sub-sector. In 2002 a follow-up study was carried out aimed at performing a systematic follow-up on the recommendations of the Joint Evaluation and to identify the constraining fac-tors preventing recommendations from being followed. Results of this follow-up study were presented during the Annual Donors’ Conference in Kumasi, after which a Final Report was produced. It has been decided to carry out a second follow-up study on the Joint Evaluation in 2005 and to present the result at this year’s Annual Donors’ Conference. The Terms of Reference (ToR) with the 16 recommendations annexed, are included in Annex 1 and a copy of the letter of the Ministry of Roads and Transport (MRT), stating no ob-jection to the project, dated February 15th 2005, is included in Annex 2. 1.2 Objective of the 2005 follow-up study

The main objective of the study is to perform a systematic assessment of the effects of the recommendations of the Joint Evaluation of Ghana’s road sub-sector programme and to identify the constraining factors preventing recommendations from being followed. 1.3 Scope of the 2005 follow-up study

The 2005 follow-up study will include the following: • An assessment of the action taken on each of the recommendations in the

evaluation report indicating which steps have already been taken (an update of the 2002 follow-up study).

• A brief description of the main factors preventing the recommendations from being followed (an update of the 2002 follow-up study).

• An assessment of the effects of the implementation of the recommendations (an extension of the 2002 follow-up study).


2

The above-mentioned steps are presented in Figure 1.1. Figure 1.1 Scope of the follow-up study Effects Effects, defined as the intended and unintended change due directly or indirectly to an intervention1, are assessed from each of the 16 recommendations. This provides a basis for assessing the quality of the recommendations and in more general terms the quality of the Joint Evaluation. Obviously, the extent to which effects are achieved is strongly linked to the actions taken. Therefore, the effects achieved also indicate the performance of the road sub-sector. The Joint Evaluation presents recommendations, however, the envisaged effects of these recommendations are not included in the Joint Evaluation. Consequently, the Joint Evaluation does not provide a yardstick to measure the level of realisation of the effects. For that reason envisaged effects have been defined in this exercise. These envisaged effects are presented in the Chapters 3-13 for each of the recommenda-tions, together with a judgement on the level of achievement. 1.4 Procedure of the 2005 follow-up study

Steps taken in the 2005 follow-up study are presented in Table 1.1.

1 OECD, Glossary of Terms in Evaluation and Results Based Management

Joint evaluation 2000 (1996-2000)

Followed?

Effects: what is the effect of the implementation of the recom-mendations?

Follow-up 2002 (2000-2002) Effects of implementation 2005 (2003-2005)

Yes: what actions have been taken in 2003-2005? No: what factors are preventing the recommendations to be followed?

Followed?Recommendations

Yes: what actions have been taken in 2000-2002? No: what factors are preventing the recommendations to be followed?

Update Effects


3

Table 1.1 Steps of 2005 follow-up study Steps taken Description 1 Preparation: questionnaire

to be filled in by relevant stakeholders

The questionnaire is based on the recommendations from the Joint Evaluation and the results from the 2002 follow-up study. A tailor-made questionnaire was dis-tributed amongst relevant stakeholders, i.e. representa-tives from the Government of Ghana (GoG) and do-nors.

2 Field study: interviews with stakeholders

In-depth interviews with key representatives from the road sub-sector.

3 Analysis: analysis of results from questionnaires and field study

The results from the questionnaires and interviews have been analysed to assess the effects of the recommenda-tions of the Joint Evaluation of Ghana’s road sub-sector programme. This assessment has resulted in the Draft Final Report.

4 Consultation: discussing results at the Donors’ Conference

Results of the Draft Final Report are presented and dis-cussed at the Donors’ Conference in December 2005.

5 Finalisation: preparation of final report

Feedback from the Donors’ Conference will be incor-porated in the Final Report, which will be distributed to all stakeholders.

1.5 Outline of this report

This report is structured according to the 16 recommendations from the Joint Evalua-tion that are grouped under 11 headings (Chapters 3-13). Each of those chapters have a similar design, i.e. listing of the recommendation and the activities in the period 2000-02, followed by an update for the period 2003-05 and a description of the ef-fects of the implementation of the recommendation. The Chapters 3-13, forming the core of the report, is preceded by a Chapter 2, providing observations from the au-thor regarding the development of the road sub-sector. The report ends with Chapter 14, presenting conclusions.

CHAPTER 2-OBSERVATIONS

4

2 OBSERVATIONS

2.1 Background

This chapter presents some observations on the status of the transport sector, provid-ing a basis for the description of the update 2003-05 and effects of the implementa-tion of the recommendations, as presented in the next sections. Historic perspective The recommendations as included in the Joint Evaluation of the Road Sub-Sector (2000), serving as the basis for this 2005 follow-up study, were based on an evaluation period 1996-2000. The point of reference for the Joint Evaluation was an official pol-icy letter produced by the GoG in February 1996, highlighting the various policy measures to which the GoG committed itself (see Annex 6). This official policy letter illustrates that many of the subjects that were relevant in 1996 are in fact still on to-day’s road sub-sector agenda. At the same time the last 10 years have shown clear progress in some of the policy areas. This report presents a historic perspective of the developments in the Ghanaian road sub-sector by linking the 1996 policy letter and the recommendations of the 1996-2000 evaluation period to actions taken up to 2005 and the effects of these actions. Dynamic environment The road sub-sector is part of a dynamic and changing environment. It is part of a broader transport sector, geared towards integration between the various modes of transport and moreover, it is a service sector, providing input for and creating condi-tions for socio-economic development of the country. Such a dynamic environment will bring along changes and new developments, of which some are presented in Sec-tion 2.2. These new developments influence the relevance of the recommendations, as defined in the Joint Evaluation. Where appropriate, reference will be made to those new developments in the Chapters 3-13. Setting for change and development In order to respond to the needs of the country and the demands that are placed upon the road sub-sector a number of conditions regarding the institutional setting of the road sub-sector needs to be met. These conditions include an open dialogue in-side and outside the sector on the role and position of (road) transport; strong leader-ship; a clear division of tasks and responsibilities between the ministry and the agen-cies and teamwork within the ministry and its agencies and with the donors. Throughout the period of review, starting with the 1996-2000 period of the Joint Evaluation, the response to above-mentioned conditions has varied, resulting in dif-ferent pace of change.


5

2.2 Current developments

This section highlights some developments that have a profound impact on the road sub-sector. These developments cannot directly be linked to any of the recommenda-tions, as defined in the Joint Evaluation. Introducing these developments may help the reader to appreciate some of the actions, preventing factors and effects as de-scribed in the following sections. Emphasis on poverty alleviation In the course of the late 90s reducing poverty has become a global leading policy principle, guiding comprehensive country-based strategies and directly influencing all sectors involved, including the transport sector. The development of Poverty Reduc-tion Strategy Papers, initiated by the IMF and the World Bank in 1999 was aimed at providing the crucial link between national public actions, donor support, and the de-velopment outcomes needed to meet the United Nations' Millennium Development Goals (MDGs), which are centred on halving poverty between 1990 and 2015. In 2000 GoG produced an Interim Poverty Reduction Strategy Paper (I-PRSP), which was followed in February 2003 by the Ghana Poverty Reduction Strategy (GPRS) - An agenda for Growth and Prosperity, covering the period 2003-05. The road sector programme that was launched in 2002, the RSDP, has been designed to reflect the GoG’s objective of poverty reduction and creation of wealth. The GPRS targets some key trunk roads in order to improve the delivery of resources to farms and produce to markets. Furthermore, road maintenance will be given high priority not only to lower transportation costs and reduce food prices, but also to generate employment. However, the GPRS notes that roads can also have negative impacts on poverty reduction: (i) road accidents and HIV/AIDS (which may spread more rapidly due to improved road networks) increase poverty; (ii) urbanisation and road devel-opment are correlated; and (iii) there is a tendency for local people to lose their lands, due to land inflation as an area becomes more attractive to investors2. The majority of the donors involved in the road sub-sector have incorporated poverty reduction in their country and sector strategies, making the contribution of the transport sector to poverty alleviation a joint ambition. Towards completion of RSDP… and the development of the new programme The RSDP is a 3-year national programme (2002-04) with an actual 5-year implemen-tation period (2002-06). RSDP presents an integrated approach to road maintenance, construction and management by MRT and its agencies. The preparation, descrip-tions and analysis relate to the programme as a whole. RSDP is supported by about 10 donors. In April 2005 a World Bank team visited Ghana for a mid-term review of

2 DFID, Institutional Review of Mainstreaming of Environment, Social, Health and Safety issues

in the Roads Sector in Ghana, January 2005.


6

RSDP3. Given the fact that the implementation period ends next year a new pro-gramme needs to be defined soon. Multi-Donor Budget Support (MDBS) A number of donors have entered into an arrangement with the GoG for the imple-mentation of a MDBS programme. The objective of this programme is to support the implementation of the GPRS (see above). Under certain conditions, the MDBS part-ners4 will provide funds to the GoG central budget5. Eventually, resources provided by the MDBS partners in this manner will replace resources which they currently earmark for specific sectors, programmes or projects. Under this arrangement, MRT and its agencies would need to compete with other ministries for resources allocated by the Ministry of Finance and Economic Planning (MoFEP). From meetings with the donors in the transport sector, a picture is emerging in which DFID takes a lead-ing position in MDBS, expressing the intention to withdraw from the transport sector in 2006, placing all funds in MDBS. Other donors, such the EC, the World Bank and Danida, take a more gradual approach by placing some funds in MDBS, while con-tinuing with a programme approach in the transport sector. Cross-cutting issues A number of cross-cutting issues that are not included in the recommendations of the Joint Evaluation (other than road safety and environmental aspects) are clearly rele-vant in the road sub-sector in Ghana. HIV/AIDS are of particular relevance to the transport sector, with professional drivers (buses and trucks) as well as those involved in road construction being exposed to HIV/AIDS. The same goes for gender equal-ity, as a result of differences in access to and use of transport and mobility.

3 For this mid-term review an extensive programme was drawn up, which was attended by many

of the donors involved in the sector. 4 MDBS partners in 2003 were ADB, Canada, Denmark, EC, The Netherlands, Switzerland, UK

and the World Bank, while Germany, Japan, UNICEF and the USA had an observer status. 5 See Review of the Potential Impact of Multi-Donor Budget Support (MDBS) On the Road Sec-

tor, Terry Lawrence, September 2003.

CHAPTER 3-MONITORING AND EVALUATION

7

3 MONITORING AND EVALUATION

3.1 Recommendation 1 - Monitoring and evaluation of RSDP

Text of recommendation: The completion of the evaluation provides an excellent oppor-tunity to prepare for the monitoring and evaluation of the progress and performance of the new road programme, RSDP. To facilitate this process, RSDP objectives should be set as clear as possible, where possible with clear, measurable and achievable targets. By doing so a set of performance indicators can be developed allowing for monitoring and evaluation of the programme. The performance indicators can be used in baseline studies serving as refer-ence points for future performance. Actions taken 2000-02 Preventing factors 2000-02 Joint approach • The preparation for RSDP has been a joint process

in which GoG and the donors participated. The Ministry of Roads and Transport (MRT) and its agencies have taken ownership of RSDP and have in close co-operation with the donor community, espe-cially the World Bank, prepared the programme. All donor activities in the road sector are part of RSDP.

• RSDP clearly defines objectives. The extent to which these objectives are measurable strongly relates to the quality of the performance indicators (see below). The extent to which the objectives are achievable is questionable, as the scope of RSDP is quite ambi-tious.

Performance indicators • RSDP’s project development objective is ‘to achieve

sustainable improvements in the supply and per-formance of roads and road sector services in a re-gionally equitable manner’. Based on this objective and underlying outputs a set of performance indica-tors has been designed to monitor and evaluate RSDP. Key performance indicators are presented in Annex 3.

• Some agencies, notably the Department of Urban Roads (DUR), have developed their own perform-ance indicators based on the overall sector objec-tives.

• So far, performance indicators have only partially been used to structurally monitor performance. The road condition mix is monitored on an annual basis. For other performance indicators, at best studies are planned to gather data for monitoring purposes. No baseline studies have been done.

• Lack of knowledge and experi-

ence to structurally use the per-formance indicators for moni-toring RSDP.


8

Update 2005-actions taken

• In April 2005 the mid-term review of RSDP took place. Bilateral meetings be-tween a World Bank delegation and GoG representatives and a series of joint meetings in which a broad representation of the donors participated were or-ganised over a two-week period. Especially in relation to the original pro-gramme period (2002-04) and even in relation with the extended implementa-tion period (2002-06), timing is rather late for the mid-term review, leaving limited time to take remedial action, if needed.

• Although progress is made in relation to the stated RSDP objectives (see An-nex 3)6, a general impression prevails that progress is relatively slow, especially in relation to the policy reform activities. For example, many of the RSDP programmed policy reform activities, such the institutional reform, transport policy and transport and poverty studies, were only recently launched.

• The RSDP defined performance indicators are not used systematically to monitor progress of the programme. The mid-term RSDP evaluation focused on the development of the road condition mix and some additional indicators, failing to provide a comprehensive coverage of the stated RSDP performance indicators. Ongoing studies, such as the transport and poverty studies, may provide additional information towards RSDP completion.

Update 2005-preventing factors

• The late commencement of programmed policy reform activities, such the in-stitutional reform, transport policy and transport and poverty studies have not stimulated the timely development of a monitoring and evaluation system, in-cluding a set of well defined performance indictors.

• The RSDP performance indicators proved to be complicated in their usage, providing a weak basis for monitoring and evaluation.

• The RSDP objective in terms of improvement of road condition mix is diffi-cult to use, as the length of the road network is not a constant factor (see Chapter 5 on clearing the backlog). Furthermore, the 70:20:10 target is unreal-istic in the given time period.

Envisaged effects

• Monitoring and evaluation of RSDP allows policy makers to steer and adjust the programme where needed and to provide relevant lessons learned that can feed into transport policy development in general and specifically into the de-velopment of the new, follow-up programme. Performance indicators, espe-cially when linked to socio-economic and policy related objectives, will help to create support for the current and follow-up programme.

6 See progress as presented in next sections, in relation to the recommendations made in the Joint

Evaluation.


9

Actual effects • The joint approach in evaluating the RSEP (previous programme) and prepar-

ing the RSDP, i.e. through a joint programme in which both GoG and devel-opment partners participated, prevented duplication of actions and ensured transparency.

• The 16 recommendations from the Joint Evaluation converge to a very large extent with the RSDP policies and objectives as defined in March 2001 (see Annex 3), indicating a linkage between the Joint Evaluation results and the contents of RSDP.

• The road sub-sector has not been able to develop a sound monitoring and evaluation system. The performance indicators as defined in RSDP have not been used to structurally monitor RSDP performance. The road sub-sector has not been able to indicate the contribution of the sector to national devel-opment objectives.

• If the road sub-sector through its RSDP and future (road) transport pro-grammes (continue to) fail to clearly indicate its contribution to national de-velopment objectives, such as poverty alleviation, through a well-functioning monitoring and evaluation system, the road sub-sector may risk a major fund-ing reduction because of the introduction of the MDBS system, as presented in Section 2.2.

Conclusions The assessment of actions taken, preventing factors and effects, as presented above, are the basis of the performance ratings as presented in the table below. Item Performance rating Actions taken 2000-02 Medium Actions taken 2003-05 Low-Medium Effects Low-medium


10

3.2 Recommendation 2 – Develop a self-monitoring system

Text of recommendation: As monitoring and evaluation are considered to become increas-ingly important in time, the GoG could, in co-ordination with the donors, consider initiating the development of a self-monitoring system. This would facilitate the policy-making proce-dure and would prepare the GoG for future evaluations. Actions taken 2000-02 Preventing factors 2000-02 • A wide range of activities related to monitoring and

evaluation are taking place at MRT and its agencies, e.g. annual review reports as input for the Donors’ Conferences, monthly, quarterly and annual progress reports, programme implementation team (PIT) meetings and agency implementation team (AIT) meetings and mid-term programme evaluation.

• At MRT the monitoring and evaluation unit has ex-panded its staff.

• MRT can obtain monitoring and evaluation input form the following sources: 1. Road condition surveys. This is considered the

least difficult part as these surveys are done on an annual basis.

2. A newly developed three-stage reporting system in which financial, physical and procurement in-formation, covering all agencies and all sources of finance, is about to be introduced at MRT. The system, which yet needs to show results, would allow MRT to closely monitor RSDP in terms of financial, physical and procurement performance.

3. Socio-economic studies. Studies need to be ‘tai-lor made’ to suit the monitoring and evaluation needs. These studies, e.g. baseline studies, have not taken place on a structural basis.

• No structural self-monitoring system is in place.

• Lack of knowledge and experi-ence on how to use monitoring and evaluation in the policy making process.


• Some of the promising initiatives regarding self-monitoring that were launched at the beginning of RSDP, as outlined above, have not yet been fully inte-grated in the operations of MRT and its agencies. Although Annual Review Reports are produced, as well as quarterly financial management reports and periodic road condition surveys, a systematic self-monitoring system is not in place.

• MRT is one the pilot ministries selected for the implementation of the Budget-ing and Public Expenditure Management Systems (BPEMS). Once opera-


11

tional, BPEMS will help to meet budgeting requirements for the three main sources of funding of the road sub-sector.

• The two transport and poverty studies that were recently launched will look at the impact of part of the RSDP programme on poverty reduction. However, the commencement period of the projects is close to the completion of RSDP, giving limited scope for a combination of baseline studies and impact assess-ment. First results, presented during the mid-term review of RSDP, focused on study approach and preliminary regression analysis, providing limited in-sight in the type of final results that can be expected.


• The monitoring and evaluation unit at MRT does not take full ownership of the RSDP monitoring process.

• The Programme Implementation Team (PIT) meetings and Agency Imple-mentation Team (AIT) meetings are not common practice.

Envisaged effects

• The effects are closely related to the effects from Recommendation 1, i.e. the ability to steer the programme where needed and generate lessons learned as input for policy development. Emphasis in this recommendation is on self-monitoring, which would place GoG in the driver seat of the monitoring process and create further ownership of the policy development process.

Actual effects

• As indicated above, self-monitoring will help GoG in its policy formulation process. The limited progress made in self-monitoring prevents the GoG to carry out a systematic monitoring and evaluation process with continuous feedback in policy formulation, making policy formulation to a large extent an ad-hoc affair.

• An inappropriately functioning self-monitoring system prevents a sound de-bate on contribution of the road sub-sector to national development objec-tives, e.g. poverty alleviation. Given the nature of MDBS this may result in the road sub-sector losing support.

Conclusions The assessment of actions taken, preventing factors and effects, as presented above, are the basis of the performance ratings as presented in the table below. Item Performance rating Actions taken 2000-02 Low-Medium Actions taken 2003-05 Low-Medium Effects Low-medium

CHAPTER 4-INSTITUTIONAL CAPACITY AND HUMAN RESOURCES DEVELOPMENT

12

4 INSTITUTIONAL CAPACITY AND HUMAN RESOURCES DEVELOPMENT

4.1 Recommendation 3 – Pursue reorganisation of the road sub-sector

Text of recommendation: The GoG should proceed with the reorganisation of the road sub-sector institutions. The agencies should be further brought down in size and focus on core activities. A retrenchment programme for staff previously involved in force account needs to be put in place to allow organisations to downsize. Although it is realised that raising salaries is not directly within the scope of MRT, but is dependent on governmental guide-lines, efforts should be made to bring salaries more in line with salaries paid in the private sector, in order to avoid outflow of qualified staff. Actions taken 2000-02 Preventing factors 2000-02 Staff reduction • GHA staff was reduced to 3,033 in 2002 (staff level

in 1999 was 3,589). However, there is still a vast amount of excess staff (required staff is estimated at 1,744).

• The envisaged retrenchment programme has not been realised. However, at the 2002 Donors Confer-ence GHA presented a proposal for a new re-trenchment programme. In this programme the ex-cess staff, corrected for retirements in the period 2002-05, is retrenched according to three scenarios.

• In absence of an agreement on a retrenchment pro-gramme, focus is on how to use excess staff in opti-mal way, e.g. through using staff for manning of weighbridges.

• Lack of funding available for

financing of the retrenchment programme.

• The current GoG efforts to stimulate economic growth and employment do not coincide with deploying civil servants through a retrenchment pro-gramme.

Salary gap • The salary gap between the private and public sector

is widening.

• The public sector salary struc-

ture does not provide room to increase salaries at MRT and the agencies.


13

Update 2005-actions taken • The retrenchment programme, which was scheduled for the RSDP implemen-

tation period did not materialise in the 2003-05 period either and seems to have lost its momentum. Staff reductions are based on natural retirement, res-ignation, sickness and death and are relatively limited in size, as indicated in Table 4.1.

Table 4.1 Staff numbers per agency GHA DFR DUR Early 90s - Some 1,500 - 1996 4,085 - 550 1999/2000 3,589 Some 660 462 2005 N/A* Some 640 Appr. 500 Remark: Exact number of GHA staff not known from questionnaire, however, the question-naire indicated that no retrenchment programme was in place.

• The salary gap between public and private sector is not narrowing. • The idea of establishing one road authority, incorporating the activities of

DFR and DUR into GHA, is still debated. Although stakeholders involved see the merit of being part of a more autonomous road authority, a prevailing stance seems to be that the initial reasons for having separate organisations for DFR and DUR are still valid. With ongoing decentralisation, DFR and DUR would increasingly focus on the centralised functions of DFR and DUR, e.g. providing standards, monitoring and evaluation and training and technical as-sistance. The relatively limited amount of staff involved in this process would make the establishment of one road authority in time a natural process.


• The main reason for the lack of action is that the retrenchment programme, given the state of the economy, would result in unemployment for (some of) the staff involved.

Envisaged effects

• Through the restructuring of the agencies it was envisaged to increase the technical capacity of the agencies which would allow the agencies to better re-spond to the challenges the agencies are facing. The retrenchment programme would create financial means that could be used more effectively. The envis-aged salary adjustments would help retain and hire qualified staff.

Actual effects

• The inability to launch the retrenchment programme leaves the sub-sector and notably GHA with a staff composition unfit for the job and a salary burden that restricts the organisation in attracting the appropriate staff. As the re-


14

trenchment programme has not materialised, no actual effects can be indi-cated.

• As for the widening salary gap, one should be aware that the public sector provides additional benefits, such as housing, transportation and (foreign) education, which may compensate for the salary gap. It is nevertheless ex-pected that the salary gap between public and private sector will continue to pull talented civil servants to the private sector.

Conclusions The assessment of actions taken, preventing factors and effects, as presented above, are the basis of the performance ratings as presented in the table below. Item Performance rating Actions taken 2000-02 Low-Medium Actions taken 2003-05 Low-Medium Effects Low-medium


15

4.2 Recommendation 4 – Develop a balanced training programme

Text of recommendation: The need for training remains high. Domestic training pro-grammes should be improved and given priority over overseas training. Actions taken 2000-02 Preventing factors 2000-02 • An extensive study on organisational development

and in-country training for staff in the road sub-sector (ODICT-P7) has recently been completed. As part of this study, an In-Country Co-ordinated Train-ing Programme for the period 2002-04 was produced based on training needs assessment. Furthermore, training and workshop sessions were provided to a total of 766 delegates from MRT and its agencies in various fields, such as change management, bridge inspection and quality awareness, etc. The vast ma-jority of training and workshops took place in 2001-2002.

• Large share of local training (in-house training, semi-nars, workshops, etc) funded by GoG, all overseas training funded by donors.

• Strong in-house training programmes are developed, notably at GHA and DUR.

• MRT is collaborating with KNUST to develop the capacity to undertake post-graduate training in trans-portation and highway engineering.

• MRT is training core people from MRT and the agencies in the use of HDM-4 at the University of Birmingham.

• Overseas training is still ‘common practice’ and so is the fact that overseas training is part of the incentive scheme to retain qualified staff. Some overseas train-ing courses are mentioned in the description per do-nor below.

• Danida has provided funds for technical staff of road agencies to participate in Danida Fellowship courses on construction-, pavement-, or bridge management courses in Denmark. Furthermore, a tailor made training course on road safety for 13 participants from different institutions was organised in Den-mark (January-March 2001). In addition, Danida is co-financing training courses at the Kofuridua Train-ing Centre and has funded participation in regional seminars for Ghanaian partners.

• Lack of overall co-ordination of training programmes and, related to this, a systematic training needs assessment link-ing existing knowledge and skills of MRT and the agencies to required knowledge and skills in a changing environ-ment.

• Overseas training is still con-sidered an effective instrument to retain qualified staff, limiting the extent to which overseas training can be replaced by (less expensive) in-country training.

7 Organisational Development and In-Country Training Programme


16

Actions taken 2000-02 Preventing factors 2000-02 • GTZ provides training to Small Medium Enterprises

contractors in road maintenance. • JICA has designed a special ‘country-focused’ train-

ing programme for regional staff of GHA. The ob-jective is to build capacities at regional and district levels. In total 20 engineers have been trained in Ja-pan (2001-2002). It is planned to train 10 more engi-neers.


• MRT is making an effort to centrally manage the training activities and MRT and its agencies’ staff, especially middle management, have benefited from training programmes. The funding of the training programmes remains a do-nors’ affair, as indicated in Table 4.2.

Table 4.2 Funding of training programme GoG (%) Donors (%) Funding of training programme 10-20 80-90 Remarks: Both DUR and GHA indicate a 10-90% (GoG-donors) split, whereas DFR indi-cate a rather different pattern: 60-40 (GoG-donors).

• Overseas training remains an attractive instrument to retain staff. Sufficient opportunities remain available as donors continue to fund overseas training as part of their programmes.

• In-country training capacity develops slowly. The collaboration with KNUST to develop the capacity to undertake post-graduate training in transportation and highway engineering has not provided the desired in-country capacity yet.


• As a result of the slow developments in the in-country training capacity, e.g. through the collaboration with KNUST, the number of people trained in-country is less than could be expected.

• The fact that donors continue to provide overseas training does not stimulate the development of in-country training capacity.

Envisaged effects

• Training programmes contribute to capacity development in the road sector, responding to the needs of the transport sector in Ghana. Giving priority to domestic training programmes should increase the scope and size, and conse-quently the impact, of the training programmes, as domestic programmes are far less expensive than the overseas training.


17

Actual effects

• There is a clear tendency to continue with overseas training, based on a clear demand (need for training, instrument to retain staff) and supply (donors con-tinue to fund training programmes, contributing to transfer of knowledge policies as stated in the donors’ policies). The availability of a constant and considerable supply of overseas training may divert the attention away from the need of setting up a strong in-country training programme.

• The recommendation to reduce overseas training did not take into considera-tion one important factor. The overseas training programmes help to retain staff. GHA, DFR and DUR indicate high retention rates of overseas trained staff. The latter is also based on bonds that need to be signed by trained staff, restraining them for a certain period of time, e.g. three years, for education abroad.

• The share of training funded by donors is such, that the sustainability of the training programmes could be questioned.

Conclusions The assessment of actions taken, preventing factors and effects, as presented above, are the basis of the performance ratings as presented in the table below. Item Performance rating Actions taken 2000-02 Medium Actions taken 2003-05 Medium Effects Medium


18

4.3 Recommendation 5 – Follow cautious approach towards decentralisation

Text of recommendation: The cautious approach followed in the decentralisation process within the road sub-sector is considered good practice. A sector-wide debate on the optimal level of decentralisation is recommended, keeping in mind potential diseconomies of scale. Actions taken 2000-02 Preventing factors 2000-02 • DUR is expanding its scope from covering six to

eight municipalities (new are Koforidua and Cape Coast). A further increase of the number of munici-palities is under debate.

• For feeder roads a pilot study was launched focusing on six districts (South Tongu, Keta, Ketu and Akatsi Districts in Volta Region, Dangbe East and Dangbe West in Greater Accra Region).

• As an intermediate step towards full decentralisation the area concept is introduced. In this concept 40 ar-eas are defined each covering two to three districts. Division of tasks and responsibilities between area offices and the district works departments (DWDs) are defined.

• Local communities and interest groups have partici-pated in planning of rural roads interventions through the DFID prioritisation method for feeder roads (see Section 2.5, Recommendation 8).

• The extent to which above mentioned approach is cautious remains questionable, especially given the lack of a clear final result of the decentralisation process and a time path towards this. The area con-cept can be regarded as an intermediate, cautious step towards full decentralisation.

• A debate on the optimal level of decentralisation is missing.

• Lack of qualified staff, re-sources and logistics (office space, vehicles, etc) are preventing factors to develop decentral structures.

• The area concept runs into ownership problems and dis-putes, as resources are concen-trated in one district and the other (two) district(s) feel ne-glected.

• The participatory approach as part of the prioritisation method for feeder roads is ex-pensive and time-consuming.

• Since DWDs are responsible for the management of water, roads, housing (public and ru-ral) a clear division of funding (different sources) and alloca-tion (type of works, housing, equipment, etc.) may prove to be difficult.

• The absence of a debate on the optimal level of decentralisation prevents a more targeted ap-proach towards the decentrali-sation process.


• The Local Government Service Act 2003 (Act 656) aims at establishing a local government service (LGS) that seeks to bring 17 decentralised departments of line ministries (including urban and feeder roads) under the control of local government authorities. With the Local Government Service Act 2003 in place, indications from the Ministry of Local Government and Rural Devel-opment (MLGRD) are that the LGS could be operational within 1-3 years. After that time, most staff at regional and district levels will be transferred


19

from the line ministries to the LGS. The Council of the Service is in place and an acting Head of the Service has been appointed. Current actions are focused on developing operating systems such as the scheme and conditions of ser-vice8.

• A National Decentralisation Action Plan developed by MLGRD and endorsed by Cabinet in 2003 seeks to address a number of decentralisation implementa-tion issues, including a district development funding modality that aims at making additional resources available to local governments9.

• The decentralisation policy has led DFR and DUR to pursue decentralisation to the District Assemblies and Municipalities respectively. A gradual approach is pursued, with DUR and DFR step by step expanding their decentral scope, as outlined below. A discussion on the optimal level of decentralisation is ab-sent.

• DUR continues to expand its scope from eight municipalities in 2002 to 15 municipalities in 2005. The focus of the collaboration is on maintenance of urban roads. Routine maintenance is now the full responsibility of the munici-palities, while DUR checks periodic maintenance.

• DFR has expanded the establishment of DWDs, by adding three Northern districts (West Mamprusi, East Mamprusi and Gushiegu)10. The establishment of DWDs is in line with GoG’s policy of creating the LGS. The DWDs are staffed and equipped.

• Currently, DFR is represented by area engineers in 70 areas, as against 40 areas in 2002.

• According to the Road Fund Act, direct disbursement to DAs is permitted but, with the exception of some funds11, this facility has not been used.


• The decentralization process and the pace of its implementation are not con-trolled by the MRT. MRT is following nationally defined decentralisation pol-icy. Consequently, a discussion on the optimal level of decentralisation and the pace of implementation or a gradual approach is not so much on MRT’s agenda, but more a national policy item.

8 Source; Draft Pre Mission Report fro the Annual Review of the TSPS II Feeder Roads Compo-

nent, Danida, 26th July 2005. 9 Source: Draft Pre Mission Report fro the Annual Review of the TSPS II Feeder Roads Compo-

nent, Danida, 26th July 2005. 10 East Mamprusi and Gushiegu Karaga have been split and instead of three districts, there are now

five districts in the Northern Region. Danida is considering to expand its scope as a result of this to fie districts in the North.

11 Some Danida funded spot improvement works are disbursed from the Road Fund directly to a number of pilot districts. Experience built up in this process could be used to streamline direct Road Fund disbursements to the districts.


20

• There is no institutional home for the merger departments, the DWDs at the national level, i.e. a technical unit within MLGRD. As a result, the monitoring of progress made by DWDs at the national level is weak.12

• The Road Fund is cautious about sending Road Fund maintenance monies di-rect to districts. The main reason is that the procedures for the management of road maintenance by DAs have not yet been developed and the whole system is untested.

Envisaged effects

• To find an optimal level of decentralisation, i.e. to balance on the one hand ef-fects in improved local contribution to transport policy making and making transport policy more responsive to local needs and on the other hand keeping a co-ordinated approach and not creating diseconomies of scale.

Actual effects

• Districts and Municipalities are now involved in the planning, selection, priori-tisation and preparation of maintenance works, illustrating the shifted respon-sibility through decentralisation.

• In the decentralised prioritisation process of road works in the districts, a bias is noticed towards rehabilitation works over maintenance works.

• Districts are positive about the creation of DWDs and expect that it will con-tribute to a more efficient management of public infrastructure. At the same time, the bottom-up consultation and prioritisation process of road works is owned by the DAs, contributing to a sense of responsibility for closer supervi-sion of works13.

• As a result of the relatively cautious approach in decentralisation, the bodies involved, i.e. the MLGRD, DAs, Municipalities, DUR and DFR have the ca-pacity to absorb the process.

Conclusions The assessment of actions taken, preventing factors and effects, as presented above, are the basis of the performance ratings as presented in the table below. Item Performance rating Actions taken 2000-02 Medium-high Actions taken 2003-05 Medium-high Effects Medium-high 12 Source: Draft Pre Mission Report fro the Annual Review of the TSPS II Feeder Roads Compo-

nent, Danida, 26th July 2005. 13 Based on Draft Pre Mission Report fro the Annual Review of the TSPS II Feeder Roads Com-

ponent, Danida, 26th July 2005.

CHAPTER 5-CLEARING THE BACKLOG

21

5 CLEARING THE BACKLOG

5.1 Recommendation 6 – Develop realistic ambition level of RSDP-

place priority on maintenance

Text of recommendation: The Road Sector Expenditure Programme 1996-2000 (RSEP) is considered quite ambitious and has only been partly realised. In developing RSDP it is rec-ommended taking into account (1) the developing needs of the road sub-sector, (2) the fund-ing capacity of GoG and donors and (3) the absorption capacity of MRT, the agencies and other organisations involved in the sector. The policy of giving priority to maintenance should be respected. Actions taken 2000-02 Preventing factors 2000-02 • The scope of RSDP is again ambitious: US$ 1.2 bil-

lion for a three-year programme. Given the current size of the financing gap (out of the programmed levels of US$ 443 million, US$ 270 million is com-mitted, leaving a financing gap of US$ 166 million in 2002) it can be stated that the financing capacity is insufficiently taken into consideration.

• Furthermore, disbursement and actual performance are expected to fall short, resulting in the inability to realize the physical objectives of having a road condi-tion mix of 70:20:10 in 2005.

• Only 34 percent of the funds needed for mainte-nance were raised and provided through the Road Fund in 2002.

• Fuel levies are not raised ac-cording to programmed levels, creating a funding gap for maintenance.

• The fact that some arrears are still outstanding and the related debt service obligation of the GoG prevent the financing ability of RSDP through the consolidated budget.

• The donor community is un-willing to finance the ‘gap’; the fact that GoG has not fully re-sponded to the demands of the donor community (raise fuel levies according to pro-grammed levels, clear arrears) has been a preventing factor of (increased) donor involvement in the sector.

• Priority on maintenance is ‘in danger’ with renewed emphasis on development projects and fuel levies increases not follow-ing programmed levels.


22

Update 2005-actions taken • The RSDP implementation period was extended from a 3-year period to a 5-

year period, with year of completion now set at 2005. Funding gaps have re-mained, resulting in the inability to carry out programmed activities.

• The maintenance programme is not fully carried out, while rehabilitation ac-tivities are taking place and being funded from the GRF14, implicating that maintenance is not given full priority. Table 5.1 presents the planned and achieved maintenance performance for 2002-04, indicating that routine main-tenance was almost fully carried out. Periodic maintenance is combined with minor rehabilitation and minor upgrading works, making a clean assessment of periodic maintenance performance rather difficult. Nevertheless, achievement percentages are seriously below target, especially for GHA and DUR.

Table 5.1 Planned and achieved maintenance (2002-04) Routine maintenance 2002-04 Planned (km) Achieved (km) % GHA 11,600 10,430 90% DFR 13,900 15,148 109% DUR 1,750 2,350 134% Periodic maintenance, minor rehabilitation and minor upgrading 2002-04 Planned (km) Achieved (km) % GHA 4,060 1,576 39% DFR 12,995 11,573 89% DUR 1,612 478 30%

Source: Mid-term review RSDP

• DFR has gradually expanded its network through transferring parts of the so-called ‘not maintainable’ network to its maintainable network. As a conse-quence the size of the total network to be maintained has increased sharply.


• The GoG continue to set (over) ambitious targets, i.e. the 70:20:10 condition mix target, and corresponding programmes, not taking fully into consideration the funding capacity of the GoG and donors and the absorption capacity of the sector, resulting in constant funding gaps.

• The preventing factors with respect to giving priority to maintenance are still in line with those as identified for the period 2000-02. The expansion of the feeder road network adds to the task of funding road maintenance.

Envisaged effects

• To design a programme that optimally responds to the needs of the sector and structurally improves the road network conditions and is in line with absorp-

14 See also Recommendation 10.


23

tion capacity of the sector and funds available. This implies achievable targets and a programme able to deliver the targets, based on best possible allocation of funds.

• Prioritising maintenance over development works results in preservation of existing assets and higher returns on investment.

Actual effects

• The condition mix target (70:20:10) was shifted forward to 2008. The RSDP condition mix target is set at 59:27:14 for the end of the programme (2006).

• Lack of maintenance results in accelerated deterioration of the road network and the need to rehabilitate the road network, which comes at considerably higher costs (compared to maintenance costs).

• The expanded network leads to higher maintenance needs, resulting in the need for a higher maintenance budget. If the current maintenance budget is insufficient to cover the maintenance needs, the policy to expand the length of the maintainable road network is questionable.

Conclusions The assessment of actions taken, preventing factors and effects, as presented above, are the basis of the performance ratings as presented in the table below. Item Performance rating Actions taken 2000-02 Low-medium Actions taken 2003-05 Low-medium Effects Low-medium

CHAPTER 6-INVESTMENT PRIORITIES

24

6 INVESTMENT PRIORITIES

6.1 Recommendation 7 – Develop a common approach for feasibility studies

Text of recommendation: As investments in the road sub-sector are based on different cri-teria, MRT could play a facilitating role in developing a common approach, e.g. through de-fining a framework of standards, including (1) unit cost of construction/rehabilitation, (2) vehicle operating costs, (3) value of time, (4) opportunity cost of capital and (5) environ-mental, safety and additional socio-economic impact.

Actions taken 2000-02 Preventing factors 2000-02 • A common approach for feasibility analysis has not

been developed. HDM-4 is becoming the new stan-dard, at least for trunk and urban roads. However, input data used in recent feasibility studies show a discrepancy, i.e. in opportunity cost of capital used (10%, 12%, 15%) and the benefits included in calcu-lation (vehicle operating costs, travel time savings, accident reduction savings, additional socio-economic benefits).

• Efforts are made towards a calibration of HDM-4 to adapt to local circumstances. Furthermore, engineer-ing staff is trained in using HDM-4 (see section on training).

• Feeder roads, given the low-volume traffic character, are assessed differently based on a participatory ap-proach, as described in Recommendation 8.

• Donors have their own ap-proach towards assessing the feasibility of projects, which is reflected by benefits included in analysis.


• A core engineering team of staff members is trained to improve skills in using the HDM-4 for budgeting, programming and strategic plans and harmonize such programmes. HDM-4 is programmed to be used for preparation of the 2006-2010 Strategic Plan of the road sub-sector.

• The HDM-4 calibration could help MRT and the agencies to standardise the approach for feasibility studies.

• Technical assistance to GHA15 has helped streamlining and standardisation in GHA’s maintenance procedures. This assistance includes the training of GHA staff to systematically collect and publish data on road conditions, resulting in a sound database for planning, programming and budgeting. Furthermore, the maintenance management system is linked to Arc View GIS software for the preparation of thematic maps.

15 This Technical Assistance is provided by GTZ.


25


• All agencies continue to have their own respective tools for planning, pro-gramming and budgeting, based on specific conditions that the agencies are faced with, e.g. low-volume traffic roads at DFR.

• Donors continue to use their own approach towards feasibility studies in the road sub-sector.

Envisaged effects

• To create a common and generally accepted approach towards project ap-praisal, through which all projects are weighed against the same, accepted cri-teria. By doing so, a bias towards certain projects is prevented and a transpar-ent prioritisation system is created.

Actual effects

• Not standardising the approach towards prioritisation of road works and leav-ing this process up to individual parties, such as road agencies or donors, re-sults in a bias towards certain projects and sub-optimal road programmes from a national perspective.

• The use of HDM-4 as the common tool for feasibility studies has contributed towards the harmonisation. However, use of HDM-4, e.g. through input data, is not yet harmonised.

Conclusions The assessment of actions taken, preventing factors and effects, as presented above, are the basis of the performance ratings as presented in the table below. Item Performance rating Actions taken 2000-02 Low-medium Actions taken 2003-05 Medium Effects Medium


26

6.2 Recommendation 8 – Prioritise road projects based on sound principles

Text of recommendation: Balancing equitable regional distribution, including investments in low-volume traffic roads and investments based on ‘sound economic principles’ needs to be further focused on. Both issues could be combined through multi-criteria analysis. Actions taken 2000-02 Preventing factors 2000-02 • No transparent prioritisation process is in place. Pri-

oritisation is a combination of economic justification and ‘political’ processes. The latter applies both to al-location to the agencies and to allocation within the agencies. Road Fund allocation to the agencies in 2001-02 was approximately GHA: 50%, DFR: 25%, DUR: 25%, whereas programmed Road Fund alloca-tions for 2003 are roughly GHA: 33%, DFR: 30%, DUR: 33%. The rationale for the allocation of funds to the agencies remains unclear.

• At GHA pre-feasibility studies for trunk road net-work were carried out. Capital and maintenance ex-penditures are ranked based on economic principles (IRR) using HDM-4. Low trafficked – poor condi-tion roads that cannot be considered within the pri-ority ranking system of high trafficked roads are listed as ‘special consideration cases’, based on pro-motion of social and economic equality in rural areas (mainly through accessibility and opportunity). In order to qualify for the ‘special consideration case’ roads should be essential to the network in terms of functionality. The combination of the economic cri-teria (IRR) and the socio-economic criteria (accessi-bility and opportunity) results in prioritised activities.

• A prioritisation methodology for feeder roads, the Road Prioritisation Model (RPM), has been devel-oped with the assistance of DFID, taking into ac-count the priorities of local people. RPM is based on a multi-criteria approach, taking into consideration traffic, economic factors (types and sizes of markets) and social factors (access to health, education, postal and telecommunication services). RPM is applied on a pilot basis and DFR is institutionalising the model.

• For urban roads a combination of economic criteria and criteria considering the income levels of targeted beneficiaries is used to prioritise activities. DUR has expressed interest in RPM although the model needs to be made applicable to urban roads.

• Separate agencies for trunk, feeder and urban roads may prevent a consorted action of prioritisation of the total road network.

• Preferences of donors to invest in certain types of roads, i.e. feeder roads, and certain re-gions may provide difficulties in ‘fair’ regional distribution.

• The RPM model is rather time-consuming and expensive.


27


• GHA and DUR continue to combine economic justification and socio-economic criteria, i.e. accessibility and opportunity, for their prioritisation process.

• Until decentralisation develops further impetus, DFR will espouse the virtues of the RPM and its district participation process by consultation. As such, it remains outside the district planning process and is only sustained by DFR and donor resources. In this way it has been applied, in whole or in part, by DFR to other feeder road development projects funded by other donors (IDA, Danida and EU) and is currently being used by KfW consultants to prioritise feeder roads in thirteen districts of Ashanti, Brong Ahafo and Volta Regions16.


• The preventing factors that were brought up in the 2000-02 period, i.e. the separate road agencies, each having their specific focus, and the donors’ pref-erences in certain type of works, remain valid for the 2003-05 period.

Envisaged effects

• To arrive at a transparent prioritisation process in which criteria, e.g. economic return, regional distribution, poverty reduction, etc are clearly defined. This, especially if based on a stakeholders’ consultation process, would contribute to the creation of support for the road sector programme.

Actual effects

• Through combining economic justification and socio-economic criteria in the GHA and DUR prioritisation process, a more balanced process is to be ex-pected. It should be noted that the actual effects highly depend on the chosen set socio-economic criteria and the weight of those criteria.

• The RPM, with its participatory approach results in a road prioritisation proc-ess responding to local demands.


16 See Road Prioritisation Methodology, Mr Tony Aire.


28

6.3 Recommendation 9 – Harmonise road standards

Text of recommendation: Road standards should be harmonised. Given road conditions and traffic, the combination of these standards with typical unit prices for maintenance, pro-vides a method for determining annual budgets in a systematic way. Actions taken 2000-02 Preventing factors 2000-02 • Road design standards have not been harmonised

yet. Actions towards harmonisation of design stan-dards are (i) a Road Design Guide developed by GHA, (ii) studies for harmonisation in progress, i.e. ‘Technical Assistance towards an Efficient, Effective and Sustainable Management of Maintenance in the Road Sub-Sector’. For DFR the focus is not so much on design standards, but given the scope of work, more on standards for rehabilitation.

• Design standards are subject to last-minute changes, e.g. the design for the construction of one-lane bridges, which needed to be ‘adjusted’ to two-lane bridges.

• Harmonisation of maintenance standards was dis-cussed early 2002 amongst MRT and the agencies. As a result GHA has adjusted its routine mainte-nance from US$ 14 million to US$ 8 million.

• Separate agencies for trunk, feeder and urban roads may prevent a consorted action to-wards developing unified stan-dards.


• The status on road standards remains in broad lines the same compared to the previously reviewed period, as outlined in the table above.


• The lack of a commonly used set of definitions, clearly defining road works and related standards. In the absence of a commonly used road work defini-tions confusion is created by mixing for example preservation, periodic main-tenance and minor rehabilitation works.

Envisaged effects

• Clearly defined road standards, in combination with a distinct set of unit rates (materials, labour, etc), facilitates the budgeting process in the road sub-sector. Furthermore, it facilitates the clarity of communication and assists the agencies in their client role in relation to contractors, e.g. in specification of works.

Actual effects

• Notwithstanding the development of road design guidelines, e.g. through the Road Design Guide at GHA, there is not yet a set of common road standards,


29

based on a typical road categorisation. This has prevented the envisaged ef-fects, as indicated above, to materialise.

Conclusions The assessment of actions taken, preventing factors and effects, as presented above, are the basis of the performance ratings as presented in the table below. Item Performance rating Actions taken 2000-02 Low-medium Actions taken 2003-05 Low-medium Effects Low-medium

CHAPTER 7-COST RECOVERY

30

7 COST RECOVERY

7.1 Recommendation 10 - Further improve road fund performance

Text of recommendation: The GRF should continue to provide a financial basis for main-tenance and rehabilitation works. Efforts should be made to further safeguard timely releases of funds. If future releases remain problematic a transfer of the funds to an account at a commercial bank should be considered. Furthermore, revenues should be increased accord-ing to schedule with emphasis on raising fuel levies. With the increasing financial basis of the GRF a debate should be initiated on future allocation of GRF funds. The (future) benefits of the GRF should be communicated to the public to create support for the fund and for the principle of road user charging. Actions taken 2000-02 Preventing factors 2000-02 • Since 2000 the releases to the GRF have been on

time; the majority of the fund is still with the Bank of Ghana.

• Fuel levies were raised in 2001 by 80 Cedis: from 150 to 230 Cedis. No increase in fuel levies in 2002 has taken place. Delay in increase in fuel levies and de-preciation of the Cedi against the US$ has brought fuel levy level to some US Cents 2.717, which is far from the US Cents 9.518 to which the levy should gradually move from 1996 to 2002.

• During the Donors Conference an increase of 2 US Cents in 2003 was ‘demanded’ by MRT; GRF calcu-lated with a 1 US cent increase. The actual increase in 2003 remains unclear at this stage.

• The allocation of funds is subject of discussion at the Road Fund Board meetings, in which private and public sector parties are represented. Rationale for al-location is unclear, as stated in Recommendation 8.

• In order to create support for the GRF, a series of ‘forums’ in the regions is organised to which all rele-vant stakeholders are invited in order to discuss the benefits of the GRF. Response to this initiative has been positive.

• Government’s reluctance to raise fuel levies according to programmed levels.


• Fuel levies were raised in 2003 to 400 Cedis per litre, which was an increase of 70% in Cedi terms. In 2004 the GoG did not implement the planned fuel levy

17 Based on 230 Cedi at an exchange rate of 8,400 Cedi per US$ (November 2002). 18 The level of US Cents 9.5 per litre is an internationally acknowledged benchmark figure for the

fuel level that corresponds with full coverage of maintenance expenditures.


31

increase, but in 2005 fuel levies were increased by 50% to 600 Cedis per litre, which is equivalent to US Cents 6.519. This amount still falls short of the envis-aged US Cents 9.5 per litre which was agreed in 1996, however, the fact re-mains that GoG has increased its fuel levy per litre from 150 Cedis in 2000 to 600 Cedis in 2005, representing a 400% increase in a 5-year period in Cedi terms. The present policy is to have fuel levies at US Cents 9.5 per litre in 2008.

• Figure 7.1 presents the development of fuel levies in relative terms (base year is 1996), both for Cedis and US$. Figure 7.1 indicates that indeed fuel levies in Cedis have strongly increased in relative terms (factor 10 in 10 years). The fuel levy development in US$ shows another picture. Fuel levies in 2005 are a huge increase compared to 2002, however, are almost at the same level of the 1998 rate.

Figure 7.1 Developments of fuel levies in cedis and US$ (relative terms, 1996=100)

fuel levy (US$)

-20406080

100120140160180

1996

(feb)

1997

(Feb

)

1998

(Feb

)

1999

(Jun)

2000

(Mar)

2001

2002

(oct)

2003

2004

2005

(May)

• Other sources of revenues, i.e. bridge and road tolls, vehicle registration, road use, and international transit fees do continue to grow in absolute terms, how-ever, fall short of the type of growth rates of fuel levies. The non-fuel levy revenues account to less than 10% of total GRF revenues.

• Releases to the GRF have been on time; shifting the funds to a commercial bank is no longer debated.

• The bases of GRF allocation to the road agencies have not been completely consistent and transparent. Allocation priorities (maintenance first) are not fully respected as GRF funds rehabilitation works, while maintenance needs are not fully accommodated for.

• The GRF Secretariat, consisting of a director and two senior officers (engineer and accountant), supported by assistant staff, totalling some 10 staff members, operates as a Civil Service Department. This status restricts the GRF in its flexibility and ability to employ commercial principles in handling day-to-day operations. Besides, the fact that salaries are now based on the Ghana Univer-

19 Based on 600 Cedi at an exchange rate of 9,200 Cedi per US$ (May 2005).

fuel levy (cedis)

-

200

400

600

800

1,000

1,200

1996

(feb)

1997

(Feb

)

1998

(Feb

)

1999

(Jun)

2000

(Mar)

2001

2002

(oct)

2003

2004

2005

(May)


32

sal Salary Structure, whereas salaries of the director and two senior staff were part of donor programmes until May 2002, means a considerable salary reduc-tion20.


• The reluctance of the GoG to raise fuel levies annually. • The institutional and salary matters have a negative impact on the ability to

hire and retain high calibre staff at GRF Secretariat. Envisaged effects

• A good functioning road fund provides sufficient funds that are timely re-leased for in the first place road maintenance and if feasible, additional pur-poses, e.g. road safety, road rehabilitation and reconstruction works. As a re-sult the road network will be preserved, positively impacting the road condi-tion mix.

Actual effects

• The gradual increase in fuel levies has broadened the financial basis of the GRF. However, not all revenues are allocated to road maintenance, with GRF funds also being allocated to rehabilitation works. The bottom line is that road maintenance is not fully funded through the GRF yet, as indicated in Table 5.1.

• Timely releases contribute to the ability to better plan maintenance works. Eventually this may result in lower unit prices, as premiums on late payments will be taken out of unit price calculations.

• Initial figures indicate that the gradual increase of fuel levies has not resulted in decreased fuel consumption21.

Conclusions The assessment of actions taken, preventing factors and effects, as presented above, are the basis of the performance ratings as presented in the table below. Item Performance rating Actions taken 2000-02 Medium-high Actions taken 2003-05 Medium Effects Medium-high

20 See: Evaluation of the Management and Financing Arrangements for Road Maintenance,

Danida, November 2003. 21 Based on feedback on questionnaire as part of this project.

CHAPTER 8-PRIVATE SECTOR CONTRACTING AND FINANCING

33

8 PRIVATE SECTOR CONTRACTING AND FINANCING

8.1 Recommendation 11 – Facilitate further private sector participation

Text of recommendation: The private sector has come a long way under RSEP and cur-rently a large share of the road works is done by the private sector. The GoG should con-tinue to facilitate the development of the private sector in order to create a more mature pri-vate sector that is able to compete on a domestic and international level. Actions taken 2000-02 Preventing factors 2000-02 Private sector participation and capacity

• The share of private sector participation (PSP) re-mains high, as was the case in the HSIP evaluation. PSP levels are over 90 percent; the actual share de-pending on type of activity and agency.

• Capacity of private sector, especially contractors, is regarded poor. Training programmes are developed to improve this situation, e.g. at DFR contractors are trained by DFID and Danida in their feeder road programme, GTZ has a training programme of As-sociation of Road Contractors (ASROC) and JICA is contributing to the training of supervising mainte-nance engineers.

Private sector participation and capacity

• Quality performance of con-tractors is prevented by low ca-pacity of (labour based and conventional) contractors, i.e. inability to make cost estimates, lack of cash and other man-agement, poor technical skills, no resources, no understanding of contractual procedures. Lo-cal consultants are unable to provide required support.

Private sector financing

• GoG tries to bring private sector financing to the road sub-sector. Steps taken are:

• A Build-Operate-Transfer (BOT) project is under review on the Accra-Kumasi road and private sector consortia have provided proposals for this project.

• A BOT policy framework is now under discussion. • MRT representatives have attended an international

BOT workshop in the USA in July 2002.


• A solid and tested legal and institutional framework is miss-ing.

• Lack of knowledge and experi-ence as a client with private sector financing.

• Lack of co-ordination with do-nors; donors question the lack of consultation and the role of donors as ‘donor’. This is espe-cially relevant for road stretches that have already gone through feasibility phase, notably on the Accra-Kumasi road.


34

Update 2005-actions taken Private sector participation and capacity

• PSP in maintenance remains high at percentages well over 90%. • Private sector capacity to carry out quality road works remain limited (see pre-

venting factors). The Road Contractors Association is receiving assistance in order to positively influence the construction industry. In addition, the open-ing up of business connections between German and Ghanaian firms in order to enhance the performance of firms that may enter into joint ventures is ac-tively being promoted22.


• The GOG continues to pursue the merits of bringing in private sector money to the road sub-sector, focusing on optional introduction of Build-Operate-Transfer (BOT), Reconstruct-Operate-Transfer (ROT) and Maintain-Operate-Transfer (MOT) schemes. Combining current and projected traffic flows and affordability levels for tolls (both as a basis for revenue raising) and local con-struction and maintenance costs (basis for investment and recurrent costs), leads to ROT schemes being the most suitable for Ghana, with financially vi-able projects at traffic volume levels of some 3,600-10,700 vehicles per day.

• Upgrading the Accra-Kumasi road into a dual carriageway at the two ends, with bypasses constructed near major towns on the route, remains the targeted showcase. This case is thoroughly reviewed23.

Update 2005-preventing factors Private sector participation and capacity

• The performance of the local construction industry continues to be problem-atic. A review on the state of ongoing RSDP projects, inspected in March-April 2004 by MRT’s Monitoring and Evaluation Unit24, indicates that 45 out of the 88 projects inspected (51%) showed poor progress. A detailed analysis of key issues related to the performance of the local construction industry is carried out in this review, presenting factors related to the contractors (e.g. failure to operate as a corporate and business entity; lack of organisational structure), the employers (e.g. problems with classification of contractors; de-layed payments), the executive agencies (e.g. inability to take timely decisions, lack of supervision capacity) and the market (e.g. conditions for credit and leasing facilities), as well as a determination of an action plan for the way for-ward.

22 The assistance and the German-Ghanaian promotion takes place through a GTZ programme. 23 See Draft Final Report on road financing, Price Waterhouse, 2005 24 See: Local Construction Industry, Summary of Findings of E. Twumasi (Monitoring and

Evaluation Unit MRT).


35

Private sector financing • Relatively limited traffic volume (AADT) levels on majority of Ghanaian

roads. In addition, the enabling environment for private sector financing has not fully matured yet.

• The relatively small market together with the relatively high perceived risks re-lated to PSP in the Ghanaian road sub-sector result in limited international in-terest in investing in PSP projects. The most suitable scheme, i.e. ROT pro-jects, is most appropriate for local investors. Local investors’ interest, however, is hampered by a range of factors, such as lack of understanding of PSP pro-jects, limited capacity of local financial markets, etc.

• Potential tension between private sector financing and donor contribution to the sector.

Envisaged effects

• Through outsourcing of activities it is intended to create a mature private sec-tor and to stimulate competition between contractors, positively affecting con-tractors’ performance in terms of value for money.

• Although beyond the scope of the description of the recommendation, the private sector is considered a potential investor in the road sector. As a conse-quence funds will become available to the sector, resulting in an improved road network. The additional consequence may be a road use charge, most likely though tolling, affecting the accessibility of the road network.

Actual effects

• Outsourcing of maintenance and construction works is a worldwide phe-nomenon, based on the conception that the private sector is capable of carry-ing out these works more efficiently. In order to reap the benefits of outsourc-ing, certain conditions must be met, such as capacity of the local industry; ca-pacity to carry out the client role and the opportunity to downsize the organi-sation (the force account). As indicated above, there is ample room for im-provement in the clients’ and contractors’ capacity. The inability to implement a retrenchment programme at GHA creates large numbers of redundant staff.

• Private sector financing has not yet materialised. Conclusions The assessment of actions taken, preventing factors and effects, as presented above, are the basis of the performance ratings as presented in the table below. Item Performance rating Actions taken 2000-02 Medium Actions taken 2003-05 Medium Effects Medium

CHAPTER 9-FOREIGN TECHNICAL ASSISTANCE

36

9 FOREIGN TECHNICAL ASSISTANCE

9.1 Recommendation 12 – Focus foreign technical assistance on transfer of knowledge and providing added value

Text of recommendation: Instead of a reduction in the amount of Foreign Technical Assis-tance (FTA), the evaluation period has indicated a consolidation or even an increase in FTA as a result of the shortage of skilled engineering and accounting staff, the need for further training of employees and the departure of engineers to the private sector. Also relatively new aspects such as safety and environment, as well as issues such as poverty alleviation and gen-der issues, increased the need for FTA. FTA should clearly provide an added value. Some of the FTA activities can be done through local experts. For this purpose it could be considered to establish a database of local experts. In all instances but especially in the ‘new’ fields emphasis should be on transfer of knowl-edge. Therefore it is required to provide counterpart staff that can take over tasks and re-sponsibilities once FTA terminates. Actions taken 2000-02 Preventing factors 2000-02 • Overall, there is a tendency towards a decrease in the

level of FTA over the last two years. This may differ per agency.

• FTA is providing added value; it is mainly used in ‘new’ fields, such as safety, environment and decen-tralisation. When knowledge is transferred, the level of FTA is decreased, e.g. Danida at DFR reducing its level of FTA from three (in 2000) to one person, fo-cusing on the decentralisation process.

• Proper transfer of knowledge can be looked at on a case-by-case basis. Insufficient information is avail-able to make a proper assessment, although in some cases reactions have been positive, e.g. for road safety. In the ‘new’ fields additional training of local experts is needed. Specific training has taken place, e.g. an overseas training programme for road safety.

• The troublesome process of creating the right incentives to retain qualified and experienced local staff is moving rather slowly.

• Proper transfer of knowledge is obstructed by organisational problems, e.g. under-capacity in the agencies and delays in hir-ing extra staff.

• Donors are sometimes keen on retaining some level of FTA in order to ‘monitor’ activities within the agencies.


• FTA continues at approximately the same rate as in the period 2000-02. FTA at GHA has decreased (in the fields of safety and maintenance), while FTA has increased at DFR (DFID Management Support Team).


• Lack of capacity of providing qualified counterpart staff remains a strong pre-venting factor in realising the full potential of FTA.

CHAPTER 9-FOREIGN TECHNICAL ASSISTANCE

37

Envisaged effects • FTA is to result in sustainable capacity development though transfer of

knowledge in areas where there is a direct local need and where capacity is lacking.

Actual effects

• FTA has proven to be an effective instrument in capacity building, especially if (i) the knowledge brought in is unique and not directly available through local consultants, i.e. mostly in ‘new’ areas, and (ii) the expertise is properly trans-ferred to local experts. In general, there is a strong belief amongst the GoG representatives that FTA has targeted ‘new’ areas, requiring expertise locally unavailable; FTA has added value.

• The proper transfer of knowledge remains a difficult aspect of FTA. For some of the previously ‘new areas’, such as road safety at GHA and NRSC, there is a sustained need for FTA. This can also be contributed to the lack of staff that is allocated to these tasks.

Conclusions The assessment of actions taken, preventing factors and effects, as presented above, are the basis of the performance ratings as presented in the table below. Item Performance rating Actions taken 2000-02 Medium-high Actions taken 2003-05 Medium-high Effects Medium-high

CHAPTER 10-ENVIRONMENTAL AND SAFETY ASSESSMENT

38

10 ENVIRONMENTAL AND SAFETY ASSESSMENT

10.1 Recommendation 13 - Increase priority of environment and safety

Text of recommendation: Environment and safety should receive greater priority from GoG, especially for staff increases and funding of recurrent expenditures. In addition, limited investments especially in road safety could well result in considerable gains. Environmental impact assessment needs to be applied for all projects and environmental aspects should be monitored during implementation. Actions taken 2000-02 Preventing factors 2000-02 • The National Road Safety commission (NRSC) was

established by Parliament in 1999 and has become operational in the period 2001-2002 co-ordinating all road safety activities. Achievements in this period are: - Development of national road safety strategy and

action plan. - Formulation of 10 regional road safety commit-

tees. - Providing training for children. - Production of videos and TV documentary. - 33 regional road safety meetings on speeding and

drink-driving. • A road safety and environment division has been set

up at GHA to focus on all safety and environment issues arising from pre-construction to operational stages. The unit employs 8 officers and 7 supporting staff.

• Procurement of the service for accident data collec-tion is ongoing.

• Local experts are trained in a broad range of road safety aspects (see Recommendation 4).

• Physical measures to stimulate road safety have been taken, i.e. (i) construction of crash barrier guardrails in high embankment areas, (ii) construction of steel ramps in major roads especially along Takoradi-Agona junction and in Tema townships, (iii) road markings and (iv) installation of traffic lights.

• Environmental impact assessment (EIA) is done for all new projects.

• Dust control measures have been taken by contrac-tors (earth speed ramps), with added advantage of contributing to road safety.

• The delay in hiring of staff at NRSC has resulted in under-staffing and has created a heavy workload on the few and over-worked staff in place.


39

Update 2005-actions taken Road Safety

• RSDP’s road safety objective is to develop technical and institutional capacities of NRSC to effectively manage road safety programmes to achieve GoG’s strategic objectives for reduction in traffic and accidents fatalities. In addition to the long list of measures listed in the actions taken from 2000-02 (see box above), GoG continues to drive the road safety policy, e.g. through25: - Development of National Road Safety Action Plans for 2002-03 and 2004-

05. - Improvement in institutional capacity with the acquisition of office equip-

ment, vehicles and construction of a permanent office building. - Upgrading training for over 1,000 commercial drivers and station managers

and training of more than 15,000 children and more than 2,000 teachers in basic traffic survival skills.

- Strengthening co-ordination and collaboration of road safety activities with the appointment of five full time Regional Road Safety Coordinators.

- Awarding a contract to BRRI to establish the National Accident Manage-ment System.

- Providing road safety publicity and other educational materials as well as road safety public education materials.

• NRSC is preparing for the 2006-10 Road Safety Strategy. Environment

• EIA continues to be common practice for new projects. However, the Institu-tional Review of Mainstreaming of ESHS Issues in the Roads Sector in Ghana indicates that Environmental Impact Assessment (EIA) procedures and envi-ronmental permits from the EPA are perceived as an administrative necessity and hindrance.

• A report on IDA Development and Maintenance Projects26 presents a long list of environmental mitigation measures per project.


• In May 2003 MRT and its agencies, together with the Environmental Protec-tion Agency (EPA) agreed to facilitate a review of Environmental, Social, Health and Safety (ESHS) issues in the road sub-sector. Project results, pre-sented early 200527, include a long list of issues, needs/solutions and actions. One aspect raised is the fact that ‘ESHS issues have tended to be implemented (and funded) as a result of donor conditionality without generating buy-in

25 Amongst others based on RSDP Mid-Term Review document, April 2005. 26 Social and Environmental Monitoring Report on IDA Development and Maintenance Projects,

GoG, February 2005 27 DFID, Institutional Review of Mainstreaming of Environment, Social, Health and Safety issues

in the Roads Sector in Ghana, January 2005.


40

from the relevant Ghanaian institutions. Conversely GoG roads projects tend not to systematically budget for ESHS costs’. A possibly related issue raised is the fact that MRT is not taking a leading role in terms of policy and guidance of ESHS issues.

Envisaged effects

• To improve the situation in road safety, i.e. decrease the number of accidents and road fatalities and to mitigate the negative impact of transport on the envi-ronment.

Actual effects

• Lack of GoG ownership with regards to ESHS issues in relation to the road sub-sector could, if the introduction of MDBS pursues, ultimately result in fewer funds allocated to the road sub-sector. This as a result of the inability to indicate the impact of ESHS related measures.

• As for road safety performance, road fatalities have increased, however, fatality and mortality rates have declined since the introduction of RSDP, as indicated in Table 10.1.

Table 10.1 Road safety performance (1991-2004)

Year All acci-dents

Fatalities Fatality rate (Deaths per 10,000 mo-

torised vehicles)

Mortality rate (Deaths per 100,000

population) 1991 8,370 920 69.67 6.21 1992 6,922 914 66.25 6.00 1993 6,467 901 57.1 5.76 1994 6,584 824 42.87 5.13 1995 8,313 1,026 43.67 6.22 1996 8,488 1,049 35.26 6.19 1997 9,918 1,015 29.77 5.84 1998 10,990 1,419 36.08 7.94 1999 8,762 1,237 27.00 6.74 2000 11,714 1,578 30.88 8.37 2001 11,291 1,660 29.24 8.59 2002 10,718 1,665 27.15 8.4 2003 10,644 1,718 26.68 8.38 2004 10,420 1,859 26.47 8.88

Source: MRT, 2004 figures are provisional

• The estimated number of persons killed in road accidents in 2004 (1,859) is considerably higher than the level in 2000 (1,578). It should be noted that mo-bility has increased in this period as well. In addition, it is a global phenome-non that in developing countries with rapidly expanding motorisation, road fa-talities tend to increase, even in cases of active road safety policy. In time there comes a moment that the decrease in accident risks as a result of road safety


41

efforts will offset the increased risks resulting from increased motorisation, re-sulting in a decrease of road fatalities. The challenge is to accelerate the proc-ess of breaking the trend of increasing road fatalities. The so-called 2nd genera-tion road safety project approach, as promoted by the World Bank28, is geared towards the realisation of this.


28 See Transport Notes No. TN-1, Implementing the Recommendations of the World Report on

Road Traffic Injury Prevention, in which 2nd generation road safety projects are presented, in-cluding the following characteristics: (i) large stand-alone road safety projects; (ii) integrated, multisectoral; (iii) outcomes large enough to be measured; (iv) complex to prepare and (v) first step in a longer process. Ghana is selected as a pilot country for a road safety country capacity review, which could form the basis for a 2nd generation road safety project approach.

CHAPTER 11-EXPENDITURE MANAGEMENT AND CONTROL

42

11 EXPENDITURE MANAGEMENT AND CONTROL

11.1 Recommendation 14 - Improve disbursement procedures to contractors and donor releases

Text of recommendation: Disbursement procedures to contractors should be streamlined, amongst others through shortening payment approval procedures. At the same time, donor releases should follow programmed levels. In order to get more grips on disbursements, all donors must provide MRT periodic status reports on Grants/Loans expenditures. At the same time quarterly reviews of implementation status by both GoG and donors will facilitate procurement and disbursement. Actions taken 2000-02 Preventing factors 2000-02 The settlement of arrears

• The arrears have not been settled, however, a large amount of arrears have been paid off in 2002.

• The causes of new arrears are lack of counterpart funding to support development projects and inade-quate provision of funds to complete ongoing com-mitments.

• The disputed arrears are now under ‘research’. Other expenditure management and control issues

• Procurement process is slow, resulting in date of tender lagging months behind the (scheduled) com-mencement date for the works.

• Duration of payment to contractors through GRF has shortened over the last two years, but there is still room for improvement. Long delays were noted in the payment of approved certificates for wholly GOG development and counterpart funds for do-nor-supported projects. This has caused accumula-tion of considerable sums of interest on delayed payment.

• The audit report indicate expenditure management and control related problems: - Discrepancies between records on maintenance at

an agency’s regional and central level. Transac-tions at headquarters could not be vouched, as in-formation on funds received, funds disbursed and amounts owed to contractors were missing.

- In instances overpayment to contractors. • Donor releases have not followed programmed lev-

els. • GoG and donors make no quarterly reviews on im-

• For the settlement of the ar-

rears preventing factors are (i) lack of GoG financial resources and perceived priority to fully settle the arrears, (ii) the need for counterpart funding and (iii) the inability to precisely in-dicate the level and timing of counterpart requirements. The latter generally applies to GoG commitments in the road sub-sector.

• The number of people needed at various organisations to check certificates are limiting a swift disbursement procedures to contractors

• Rigid administrative structures and regulations of donor or-ganisations prevent flexible ap-proach in procurement and implementation.


43

Actions taken 2000-02 Preventing factors 2000-02 plementation status on a structural basis. No system to monitor expenditure management and control is in place, although MRT has decided to procure an accounting and management information system. MRT is one of the three pilot ministries to start the implementation of a system designed to meet report-ing requirements of the three main sources of fund-ing.

• Attempts have been made by agencies to install con-tract management systems, which have not been fully operational.


• With tightened control on overspending, especially on development projects (co)funded though the consolidated budget, and with the new Procurement Act in place, the arrears problem has been practically brought to a halt.

• However, some smaller arrears could be building up in maintenance and/or minor rehabilitation works. These are relatively small arrears compared to those noticed in the beginning of the century.

• Financial, technical and procurement audits are carried out on an annual basis in order to provide transparency and accountability in the use of the combined funds in the road sector, i.e. funds from the Consolidated Fund, the Ghana Road Fund and the Donor Funds. Issues arising from the 2004 continuous technical and procurement audits include: - Capacity of local contractors to undertake and execute projects within the

contractual period continuous to be a problem in the sector. MRT and its agencies are in the process of reviewing the contractor’s classification to ad-dress this problem (see Recommendation 11 on GTZ support).

- Even though GRF releases exceed its budget, this has not been sufficient to pay for all the works done due to arrears carried over from the previous year. All the same, the payment regime was an improvement over previous years.

- Almost all major rehabilitation and reconstruction projects are on course (except Jasikan-Brewanease project).

- Environmental and road safety issues are yet to be incorporated in mainte-nance contracts. For development projects, these issues are taken in.

- An analysis of unit costs per maintenance activity indicate that 2003 aver-ages are in line with industry averages and have considerably come down compared to earlier year averages.


44

• MRT makes quarterly progress reports, providing an extensive overview of progress of the implementation of RSDP per agency.

• Donor releases are still behind on programmed levels. • As outlined in Recommendation 2, MRT is one of the three pilot ministries to

incorporate BPEMS, which will help MRT in its expenditure management and control.


• Procedures and regulations of donor organisations continue to prevent a flexi-ble approach in procurement and implementation.

Envisaged effects

• Improved disbursement to contractors will positively impact the planning and realisation of projects. In addition, timely disbursement will avoid financial claims from contractors, including interest payments, and risk premiums in-cluded in the financial bids, lowering unit rate.

• Timely donor releases will allow MRT and the agencies to better plan their ac-tivities.

Actual effects

• Solving the arrears problem has improved the road sub-sector’s technical and financial performance, as no funds need to be allocated to expensive negoti-ated contracts and interest payments. Putting a system in place that is targeted towards arrears prevention, e.g. through the new Procurement Act, will further help the sub-sector to avoid gliding back to the situation in the late 90s.

• Efforts to improve technical, financial and procurement auditing helps MRT to further strengthen its expenditure management and control.

Conclusions The assessment of actions taken, preventing factors and effects, as presented above, are the basis of the performance ratings as presented in the table below. Item Performance rating Actions taken 2000-02 Low Actions taken 2003-05 Medium-high Effects Medium

CHAPTER 12-ROAD AND TRANSPORT REGULATIONS

45

12 ROAD TRANSPORT REGULATIONS

12.1 Recommendation 15 - Put priority on axle load control

Text of recommendation: The axle load control programme should receive priority. Putting great effort in improving road conditions is ineffective if at the same time damage caused through overloading is not tackled properly. Actions taken 2000-02 Preventing factors 2000-02 • Two more permanent weighbridges are now opera-

tional (besides the two existing ones in Ofankor and Asuoyeboah). Furthermore, seven weighbridges have been installed, but still need among other things elec-tric power, water, security lighting, fencing of station and furniture.

• A portable weighbridge is installed near Tema har-bour to ‘tackle’ overloaded transit trucks. Ten port-able weighbridges are procured under IDA financing to be distributed to the regions.

• It should be noted that the axle load programme is aimed at installing 27 permanent and 21 portable weighbridges.

• Portable weighbridges installed near harbour to spot overloaded ‘transit’ trucks.

• Operations of operational weighbridges remain problematic, with limited opening hours, not a sys-tematic way of weighing trucks and availability of al-ternative routes.

• The first batch (14 persons) of weighbridge person-nel has been trained. A new batch is expected to be trained within the coming years.

• GHA intends to privatise the management of the permanent weighbridges. The training and privatisa-tion is aimed at improving operational performance of the weighbridges.

• The pace of implementation of the axle load programme.

• Due to problems in neighbour-ing countries, notably Cote d’Ivoire, the transit function of Ghana is rapidly causing great damage to the roads.


• Slow progress in implementing the axle load programme has led a group of donors29 to strongly appeal for a structured approach towards the preparation of a policy document and action plan on axle load control. Preparation for the development of such a policy document and action plan started in 2003.

29 As an indication: KfW has included axle load control as part of their conditions for

support in the road sub-sector


46

• In 2004 an Axle Load Working Group was established to review and revise the policy and action plan. In December 2004 a report was published entitled ‘Review of Axle Load Control Policy & Assistance in the Implementation of the Action Plan30’. In February/March 2005 a Study Tour was organised to learn from experiences in South Africa, Malawi, Tanzania, Germany and Brit-ain.

• Findings from the Study Tour and comments on the previous report, resulted in a new report, as presented in the RSDP Mid-Term Review, including the (i) Axle Load Control Policy; (ii) the Action Plan; (iii) Cost-Benefit Analysis; (iv) Legal Comments, as well as Terms of Reference for Technical Assistance in helping the Axle Load Working Group to implement the policy and action plan; a Weigh Station Location Plan and Draft Regulations.

• In 2004 six weighbridge stations were operational: Yapei, Bolgatanga, Ofankor, Auoyboah, Tema, and Afienya. Three out of six of the weighbridges operate 24-hours/day. One additional weighbridge station in Bogoso may have become operational early 2005.

• According to the 4th Quarter Report, prepared by MRT, bidding documents for the procurement of 10 Portable Weigh pads have been prepared and sub-mitted to the World Bank. The tendering is contingent on the completion of the Axle Load Study commissioned by the donors.


• According to the 2004 continuous technical and procurement audits, even though overloading is detected, the stations are unable to offload the excess load before the vehicles are allowed to continue their voyage, as a result of in-adequate storage facilities. Offenders are only fined. The audits also indicated that Afienya station indicates a gradual decreasing trend of overloading. How-ever, Pwaluga station records 75% overloading rates.

• Obviously, the implementation of the original programme is far behind on schedule. The policy document and action plan are aimed at the development of 29 permanent weighbridge stations.

Envisaged effects

• The axle load programme is intended to avoid overloading and to limit the damage from overloading, positively impacting the road conditions.

Actual effects

• The study report Review of Axle Load Control Policy & Assistance in the Im-plementation of the Action Plan includes a calculation on the damaging effect of overloading. The cost of road repairs is estimated at US$ 6.5 million per

30 Report produced by IT Transport/Scott Wilson


47

annum. If Vehicle Operating Costs (VOC) would be included, annual costs would strongly increase to some US$ 30 million per annum.

• Cost-Benefit Analysis, as presented in the same report, indicates an Internal Rate of Return (IRR) of 34% for the case in which only road damage costs are included in the calculation. If saved VOC would be included, IRR would be at 109%.

Conclusions The assessment of actions taken, preventing factors and effects, as presented above, are the basis of the performance ratings as presented in the table below. Item Performance rating Actions taken 2000-02 Low Actions taken 2003-05 Low-medium Effects Low

CHAPTER 13-DONOR CO-ORDINATION

48

13 DONOR CO-ORDINATION

13.1 Recommendation 16 - Further improve donor co-ordination

Text of recommendation: Co-operation between GoG and donors should be further pur-sued. Depending on donor willingness, procedures for implementation, monitoring, account-ing and reporting should be harmonised. GoG planning and programming capacity needs to be further developed to move into a situation in which GoG can take programme ownership according to the Comprehensive Development Framework principle. Actions taken 2000-02 Preventing factors 2000-02 • Concept of programme approach has been adopted

to place all donor interventions under the umbrella of RSDP.

• Donor co-ordination is taking place through meet-ings (monthly, quarterly, annual Donors Confer-ences), which is considered useful by the majority of donors active in the road sub-sector. MRT actively supports the donor co-ordination activities.

• Donors expressed the desire to move to a next level of donor co-ordination, i.e. discussing and possibly getting a joint standpoint on thematic issues such as institutional development and training. Donor co-ordination would evolve in donor collaboration.

• Lack of co-ordination between the three agencies, preventing the kind of sector-wide strate-gic planning needed to co-ordinate joint donor funding.

• Unsolved issues (arrears, fuel levies) frustrating programme progress and becoming condi-tionalities for continued donor support.

• Unwillingness or inability of donors to harmonise proce-dures.



• The concepts of a Sector Wide Approach and sector funding that were ac-tively discussed during the 2002 Follow-up Study have now been surpassed by a discussion focused on MDBS, as indicated in Section 2.2. Only DFID is pur-suing a ‘full MDBS approach’, putting all sector funds in MDBS as of 2006, while other donors have placed part of their budget in MDBS. It seems that on the short-run most donors will continue their sector programmes. How things will develop on a somewhat longer run is unclear. A MDBS Working Group, including representation from MRT and selected donors has been set up and has had initial meetings. The pace of the meetings has slowed down, however, recently an effort is made to revitalise the MDBS Working Group.


49

Update 2003-preventing factors • There is little evidence of a joint approach towards the development of a new

(road) transport sector development programme. The mid-term review of RSDP was driven by the World Bank and MRT, with other donors invited to participate.

• Individual donors still continue to pursue the appraisal and review of their in-dividual programmes. Furthermore, despite the Rome and Paris Declarations on harmonisation and alignment,.donors continue to work according to their own specific requirements, e.g. in procurement or financial auditing and con-trol. The above results in a continued high administrative burden on MRT and its agencies.

Envisaged effects

• Improved donor co-ordination contributes to a consorted action, owned and guided by the GoG, in which all resources are pulled together to contribute to a common objective.

• Common procedures and joint efforts, e.g. in appraisal, considerably lower the administrative burden on GoG, notably MRT and the agencies.

Actual effects

• Donor co-ordination has provided an arena for transport policy dialogue and for all partners to provide their particular input in the road sub-sector. Indi-vidual donor programmes are pulled together under one overarching, com-mon RSDP programme. The mid-term review could provide a basis from which the new (road) transport sector development programme could be de-veloped.

• The fact that donors continue to pursue their own procedures, results in a high administrative burden on MRT and its agencies.

• Donor co-ordination has forced specific items on the transport agenda, e.g. the arrears problem, the axle load policy and the annual increase of fuel levies.

• Sustained MDBS development may result in a withdrawal of donors’ (road) transport experts from the sector, negatively impacting the ability to co-ordinate matters between GoG and donors on a sector level, as well as the policy dialogue between GoG and donors31.

31 An assessment on the effects of MDBS goes beyond the scope of this section, which is focusing

on donor co-ordination. Having said that, it is obvious that MDBS will have a large impact, e.g. through transferring ownership for prioritisation to GoG, reducing transaction costs, strength-ening GoG systems and a decrease in the directly controlled donor funds.


50

Conclusions The assessment of actions taken, preventing factors and effects, as presented above, are the basis of the performance ratings as presented in the table below. Item Performance rating Actions taken 2000-02 High Actions taken 2003-05 Medium Effects Medium-high

CHAPTER 14-CONCLUSIONS

51

14 CONCLUSIONS

This chapter presents concluding remarks, which are meant to synthesize the findings, emphasize key issues and present recommendations where relevant. The concluding remarks are based on the information as presented in the previous chapters. A sum-marised overview of actions taken and effects per recommendation is presented in the Annexes, i.e. Annex 7 for actions taken and Annex 8 for effects. The sector is at a crossroad….

• The (road) transport sector in Ghana is currently at a crossroad. New devel-opments, such as the poverty reduction focus, bring along the need to clearly demonstrate the contribution of the transport sector to the Ghanaian socio-economic development. As a result, the traditionally inward oriented sector is forced to extend its focus.

• Donors, each at their own pace, are considering MDBS as an alternative for bringing direct funding to the sector. This process further reinforces the need to clearly illustrate the contribution of the sector towards socio-economic de-velopment and poverty reduction.

• The sector seems to be aware of the need to respond to new challenges and has launched a range of studies, i.e. the institutional study, the transport policy study and the transport and poverty studies. Furthermore, MRT has estab-lished a MDBS working group. It is critical that the sector not only has the ca-pacity to absorb the findings of these studies and initiatives, but takes owner-ship of the policy development process, clearly defining the way forward. The studies are supporting the policy development process; they are not replacing it.

The implementation pace of the sector programme is rather slow….

• As for the pace of implementation of the RSDP programme, the overall im-pression is one of missed opportunity. Consequently, achieved effects fall short of the envisaged effects.

• The slow pace of implementation implicates that there is certainly a basis for improvement. In most cases the underlying problems and the need for action, as well as the type of action needed are clear. The implementation, however, is often lagging behind. Looking at this positively, one could say that Ghana will get there; it only takes a bit more time. Being more critical, one could argue that Ghana is losing valuable time and energy by not taking full ownership and actively managing the implementation process.

The need for a monitoring and evaluation system is high….

• If the road sub-sector through its RSDP and future (road) transport pro-grammes fail to clearly indicate its contribution to national development objec-


52

tives, such as poverty alleviation, through a well-functioning monitoring and evaluation system, the road sub-sector may risk a major funding reduction be-cause of the introduction of the MDBS system. Turning the argument around, in order to prepare itself for the future, the sector should make an effort to de-fine indicators, linking the sector performance to Millennium Development Goals.

• The performance indicators, as defined within RSDP, are not used systemati-cally to monitor progress of the programme. The mid-term RSDP review fo-cused on the development of the road condition mix and additional indicators, failing to provide a comprehensive coverage of the stated RSDP performance indicators. Ongoing studies, such as the transport and poverty studies, may provide additional information towards RSDP completion.

• Some of the promising initiatives regarding self-monitoring that were launched at the beginning of RSDP, e.g. programme and agency implementation teams, have not yet been fully integrated in the operations of MRT and its agencies. Although Annual Review Reports are produced, as well as quarterly financial management reports and periodic road condition surveys, a systematic self-monitoring system is not in place. Lack of self-monitoring capacity makes pol-icy development an ‘ad hoc’ affair.

• MRT is one the pilot ministries selected for the implementation of BPEMS. Once operational, BPEMS will help to meet budgeting requirements for the three main sources of funding of the road sub-sector.

… and so is the need for institutional capacity building and human resources development….

• The retrenchment programme, which was scheduled for the RSDP implemen-tation period did not materialise and seems to have lost its momentum. Staff reductions are based on natural retirement, resignation, sickness and death and are relatively limited in size. The inability to launch the retrenchment pro-gramme leaves the sub-sector and notably GHA with a staff composition unfit for the job and a salary burden that restricts the organisation in attracting the appropriate staff. At the same time it must be recognised that the implementa-tion of the retrenchment programme, would result in unemployment for some of the staff involved.

• The need for training remains high. Training provides an excellent basis for strengthening institutional capacity and enhances transfer of knowledge. The share of training funded by donors is high. There is a clear tendency to con-tinue with overseas training, based on an apparent demand (need for training, instrument to retain staff) and supply (donors continue to fund training pro-grammes, contributing to transfer of knowledge policies as stated in the do-nors’ policies). The focus on overseas training may divert the focus on setting up a strong in-country training programme.


53

There is a need to clearly define investment prioritises…. • Not standardising the approach towards prioritisation of road works and leav-

ing this process up to individual parties, such as road agencies or donors, re-sults in a bias towards certain projects and possible sub-optimal road pro-grammes from a national perspective.

• The use of HDM-4 as the common tool for feasibility studies has certainly contributed towards harmonisation. The use of HDM-4, e.g. through input data, is not fully harmonised.

• The maintenance programme is not fully carried out, while rehabilitation ac-tivities are taking place and being funded from the GRF, implicating that maintenance is not given full priority. In the period 2002-05, routine mainte-nance was fully carried out. Periodic maintenance is combined with minor re-habilitation and minor upgrading works, making a clean assessment of periodic maintenance performance difficult. Achievement percentages on maintenance are below target, especially for GHA and DUR.

• DFR has gradually expanded its network through transferring parts of the so-called ‘non maintainable’ network to its maintainable network. As a conse-quence the size of the total network to be maintained has increased.

The Road Fund has broadened its financial basis, but fuel levies have not reached anticipated targets yet….

• The main source of revenue of the Road Fund, the fuel levy, has gradually in-creased over a 10-year period, i.e. from 60 cedis per litre in 1996 to a level of 600 cedis per litre in 2005. The strong deprecation of the cedi against the US$ from the year 2000 on have reduced the fuel levy in US$ to levels far from the envisaged US Cents 9.5, with a level of US Cents 2.4 in 2002. Recent increases in fuel levies up to a level of 600 cedis per litre in 2005 have brought the level at US Cents 6.5 per litre, which is almost at the same level as in 1998. The pre-sent policy is to have fule levies at US Cents 9.5 per litre in 2008.

• Top priority of the GRF should be to generate adequate funds to meet road maintenance needs on a sustainable basis and to provide funds on a timely ba-sis.

Environmental and Safety assessment needs to be integrated in the sector’s work….

• In May 2003 a review of ESHS issues in the road sub-sector took place. One aspect raised is the fact that ‘ESHS issues have tended to be implemented (and funded) as a result of donor conditionality without generating buy-in from the relevant Ghanaian institutions. Conversely GoG roads projects tend not to systematically budget for ESHS costs’. A possibly related issue raised is the fact that MRT is not taking a leading role in terms of policy and guidance of ESHS issues.

• As for road safety performance, road fatalities have increased, however, fatality and mortality rates have declined since the introduction of RSDP.


54

Progress can be recorded in expenditure management and control…. • With tightened control on overspending, especially on development projects

(co)funded though the consolidated budget, and with the new Procurement Act in place, the arrears problem has been practically brought to a halt. Some smaller arrears could be building up in maintenance and/or minor rehabilita-tion works. However, these are relatively small arrears compared to those no-ticed in the beginning of the century.

The axle load programme is moving, but slowly….

• Slow progress in implementing the axle load programme has led a group of donors to strongly appeal for a structured approach towards the preparation of a policy document and action plan on axle load control. Preparation for the development of such a policy document and action plan started in 2003 and was followed by setting up of an Axle Load Working Group.

• Despite the newly found impetus, the implementation of the original pro-gramme is far behind on schedule. The policy document and action plan are aimed at the development of 29 permanent weighbridge stations.

Donor co-ordination has facilitated a policy debate, however, donors continue to work according to own procedures….


• It should be noted that individual donors still continue to pursue the appraisal and review of their individual programmes. Furthermore, despite the Rome and Paris Declarations on harmonisation and alignment,.donors continue to work according to their own specific requirements, e.g. in procurement or fi-nancial auditing and control. The above results in a continued high administra-tive burden on MRT and its agencies.

The way forward….

• Indeed the road sector is at a crossroad. External pressures placed upon the sector, such as the need to contribute to poverty alleviation and the advance of MDBS, could affect the sector positively or negatively, depending on the way the sector responds to the challenges. Challenges are several; to a large extent related to a more external orientation of the transport sector, e.g. through the creation of a monitoring system, based on performance indicators that dem-onstrate the transport sector’s contribution to national development objec-tives. By responding to these challenges the transport sector is able to argue its case and, at least to some extent, is master of its own faith. Not responding to


55

the challenges could result in isolation of the transport sector and the sector missing out on (traditional) direct project or sector funding.

ANNEX 1-TERMS OF REFERENCE

56

ANNEX 1 -TERMS OF REFERENCE Copenhagen, 10 March 2005 Eval. j.no. 104.A.1.e.50 EVALUATION OF THE RESULTS OF IMPLEMENTATION OF THE RECOMMENDATIONS OF THE JOINT EVALUATION OF GHANA’S ROAD SUB- SECTOR PROGRAMME

1. Background The Joint Evaluation of the road sub-sector in Ghana was carried out from March to November 2000 by the Netherlands Economic Institute. The evaluation has been a good example of how ownership of the evaluation process can be shared between donors and recipient country. The evaluation report contains a number of lessons learned which are in fact recommenda-tions and will be referred to as such in these Terms of Reference. The recommendations are not directed towards a particular donor but are general recommendations directed to-wards all actors in the sub-sector. In Appendix 1 all 16 recommendations are listed in the left column. In the right column are listed the follow-up actions which one donor – Danida – has agreed to take. The annex is the so-called follow-up memorandum which is part of Danida’s evaluation system. After each evaluation a follow-up memorandum is prepared taking note of Danida’s position on the recommendations and identifying the departments responsible for the agreed follow-up activities. The memorandum is signed by the head of Danida and the Evaluation Depart-ment checks the implementation of these activities. The check normally takes place one to two years after the evaluation. However, in this particular evaluation it is much more meaningful to try to register the col-lective actions of all the actors in the evaluation: The Government of Ghana and the do-nors. It was decided to carry out a follow-up study in November 2002. The results were presented at the Annual Donors’ Conference in Kumasi 26-27 November 2002 and the report – dated December 2002 – was distributed to all stakeholders. The conclusions of the follow-up study were mixed: progress was made in many areas while in others areas – including some crucial ones – progress was rather slow. In the “Review of Evaluation in Danida” (2003) the independent reviewers recommended that the Evaluation Department went one step further than just tracking the recommenda-tions made in the evaluation reports. It was proposed that a systematic review was under-


57

taken whether the recommendations when implemented have the intended effects on pro-jects, programmes, or policies. 2. Objective The main objective of the study is to perform a systematic assessment of the effects of the recommendations of the Joint Evaluation of Ghana’s road sub-sector programme and to identify the constraining factors preventing recommendations from being followed. 3. Scope of Work The study shall comprise, but not necessarily be limited to: • An assessment of the action taken on each of the recommendations in the evaluation

report indicating which steps have been taken. • An assessment of the effects of each of the recommendations on projects, pro-

grammes, and policy. Were the effects as intended in the evaluation? • A brief description of the main factors preventing recommendations from being fol-

lowed. • An assessment of the necessity/possibility of further action on each of the recommen-

dations. • An assessment of the utility of the evaluation as a learning instrument. 4. Method of Work The Consultant will carry out the study in phases: • Preparation of questionnaire to be used for guidance during the round of interviews

with stakeholders in Ghana. The questionnaire will be distributed in advance of the field study.

• Interview round in Ghana where the questionnaire shall form the basis for the in-depth

interviews with key persons and more in-depth studies of the implementation and the effects of the main recommendations. Collection of all relevant documentation on the development in the sub-sector since 2000.

• The interviews and supplementary documentation collected during the field study will

be analysed in the Consultant’s head office and a draft report (max. 25 pages including a two-page Executive Summary) will be prepared and distributed to all stakeholders well in advance of the annual donors’ conference.

• Presentation and discussion of the draft report will take place in connection with the

donors’ conference or – if this is not possible – written responses could be forwarded to the Consultant.


58

5. Timing The questionnaires should be distributed by e-mail or via the Royal Danish Embassy not later than 31 March 2005. The field study shall take place in weeks 15 and 16. The draft re-port shall be ready not later than 31 May 2005 and the final report three weeks after having received comments from the stakeholders (through the Evaluation Department). References: • Effective Practices in Conducting a Joint Multi-Donor Evaluation, OECD 2000. • Glossary of Key Terms in Evaluation and Result Based Management, OECD 2002. • Joint Evaluation of Ghana’s Road Sub-Sector Programme, Danida, November 2000. • Ghana: Follow-up Study on the Joint Evaluation of the Rod Sub-Sector Programme,

ECORYS Transport, December 2002.


59

Appendix 1 Date: 24.1.2001

Follow-up Memorandum

Joint Evaluation of the Road Sub-Sector Programme 1996-2000 in Ghana

In case the implementation of the below mentioned decisions deviate from appropriation documents, the Board of Danida and/or the Parliamentary Finance Committee must be informed. It is the first time a Joint Evaluation of a sector programme is carried out. The recommen-dations in the evaluation report are not directed towards a particular donor but are general recommendations directed towards all actors in the sector. The follow-up actions indicated in the right column are, however, the actions which Danida (S.8 and TSA) will take. RECOMMENDATIONS FOLLOW-UP

1. The completion of the evaluation provides an excellent opportunity to prepare for the monitor-ing and evaluation the new Road Sector Devel-opment Programme (RSDP) covering 2001-2003. To facilitate this process, RSDP objectives should be set with clear, measurable and achievable tar-gets. By doing so a set of performance indicators can be developed allowing for monitoring and evaluation of the programme. The performance indicators can be used in baseline studies serving as reference points for future performance.

1. Danida will take part in the joint appraisal of the RSDP in January 2001 and will in this con-nection actively support the establishment of a monitoring and evaluation system based on per-formance indicators.

2. As monitoring and evaluation are considered to become increasingly important in time, the Government of Ghana (GoG) could, in co-ordination with the donors, consider initiating the development of a self-monitoring system. This would facilitate the policy-making procedure and would prepare the GoG for future evaluations.

As 1.


60

RECOMMENDATIONS FOLLOW-UP

3. Danida will monitor the development jointly with the other donors and actively work for the inclusion of the reorganisation in the RSDP:

4. The need for training remains high. Domestic training programmes should be improved and given priority over overseas training.

4. As 3.

5. The cautious approach followed in the decen-tralisation process within the road sub-sector is considered good practice. A sector-wide debate on the optimal level of decentralisation is rec-ommended, keeping in mind potential disecono-mies of scale.

5. Danida will continue to be active in the decen-tralisation issue based on the practical experience from Danida’s transport sector programme (TSPS) components. The focus will increasingly be on the district level.

6. The Road Sector Expenditure Programme 1996-2000 (RSEP) is considered quite ambitious and has only been partly realised. In developing RSDP it is recommended to take into account the developing needs and the funding capacity of GoG and donors as well as the absorption capac-ity of Ministry of Roads and Transport (MRT), the road agencies and other organisations in-volved. The policy of giving priority to mainte-nance should be respected.

6. Danida will fully support this recommendation in the appraisal of the RSDP and in future annual sector reviews (ASR).

7. As investments in the road sub-sector are based on different criteria, MRT could play a fa-cilitating role in developing a common approach, e.g. through defining a framework of standards, including (1) unit cost of construction/re-habilitation, (2) vehicle operating costs, (3) value of time, (4) opportunity cost of capital and (5) environmental, safety and additional socio-economic impact.

7. Danida agrees to this recommendation espe-cially if the standards are transparent and well documented.


61


8. Balancing equitable regional distribution, in-cluding investments in low-volume traffic roads and investments based on ‘sound economic prin-ciples’ needs to be further focused on. Both is-sues could possibly be combined through a multi-criteria approach.

8. A planned study – funded by Danida – sup-ports this recommendation.

9. Road standards should be harmonised. Given road conditions and traffic, the combination of these standards with typical unit prices for maintenance provides a method for determining annual budgets in a systematic way.

9. Danida agrees to this recommendation.

10. The Ghana Road Fund (GRF) should con-tinue to provide a financial basis for maintenance and rehabilitation works. Efforts should be made to further safeguard timely releases of funds. If future releases remain problematic a transfer of the funds to an account at a commercial bank should be considered. Furthermore, revenues should be increased according to schedule with emphasis on raising fuel levies. With the increas-ing financial basis of the GRF a debate should be initiated on future allocation of GRF funds. The benefits of the GRF should be communicated to the public to create support for the fund and for the principle of road user charging.

10. Danida will closely monitor the development of the GRF at the ASRs and the annual donors’ conferences as GRF is crucial to the sustainability of the sub-sector.

11. The private sector has come a long way un-der RSEP and currently a large share of the road works is done by the private sector. The GoG should continue to facilitate the development of the private sector in order to create a more ma-ture private sector that is able to compete on a domestic and international level.

11. Danida will continue to support the private sector in the TSPS with increasing emphasis on competitive bidding also on feeder road con-tracts.

12. Instead of a reduction in the amount of for-eign technical assistance (FTA), the evaluation period has witnessed a consolidation or even an increase in FTA as a result of the shortage of skilled engineering and accounting staff, the need for further training of employees and the depar-ture of engineers to the private sector. Also rela-tively new aspects such as safety and environ-ment, as well as issues such as poverty alleviation and gender issues, increase the need for FTA. FTA should clearly provide an added value. Some of the FTA activities can be done through local

12. Danida will continue carefully to consider the possibilities of using local technical assistance instead of FTA.


62


experts. For this purpose it could be considered to establish a database of local experts. In all in-stances but especially in the ‘new’ fields emphasis should be on transfer of knowledge. Therefore it is required to provide counterpart staff that can take over tasks and responsibilities once FTA terminates. 13. Environment and safety should receive greater priority from GoG, especially for staff increases and funding of recurrent expenditures. In addition, limited investments, especially in road safety, could well result in considerable gains. Environmental impact assessment needs to be applied for all projects and environmental as-pects should be monitored during implementa-tion.

13. Danida will continue to support the road safety and environmental units in Ghana High-way Authority. Danida already supports the preparation of a road safety strategy.

14. Disbursement procedures to contractors should be streamlined, amongst others through shortening payment approval procedures. At the same time, donor releases should follow pro-grammed levels. In order to get more grips on disbursements, all donors must provide MRT periodic status reports on Grants/Loans expendi-tures. At the same time quarterly reviews of im-plementation status by GoG and donors will fa-cilitate procurement and disbursement.

14. Danida agrees to this recommendation and will support that the capacity of GoG is strength-ened in order to take over programme ownership.

15. The axle load control programme should re-ceive priority. Putting great effort in improving road conditions is ineffective if at the same time damage caused through overloading is not tackled properly.

15. Danida agrees to this recommendation.

16. Co-operation between GoG and donors should be further pursued. Depending on donor willingness, procedures for implementation, monitoring, accounting and reporting should be harmonised. GoG planning and programming capacity needs to be further developed to move into a situation in which GoG can take pro-gramme ownership according to the Compre-hensive Development Framework principle.

16. Danida agrees to a strengthened donor co-ordination (e.g. Danida took the lead in the Joint Evaluation process). Danida will also be active in the CDF dialogue and take part in the RSDP ap-praisal in January 2001.

Date: 24. January 2001,

Signed by Ellen M. Løj, State Secretary

ANNEX 2-OFFICIAL LETTER MINISTRY OF ROADS AND TRANSPORT

ANNEX 2 –OFFICIAL LETTER MRT

ANNEX 3-RSDP OBJECTIVES AS STATED IN THE MARCH 2001 POLICY LETTER AND RSDP PERFORMANCE INDICATORS

ANNEX 3 - RSDP OBJECTIVES AS STATED IN THE MARCH 2001 POL-ICY LETTER AND RSDP PERFORMANCE INDICATORS RSDP OBJECTIVES AS STATED IN THE MARCH 2001 POLICY LET-TER

• Develop in-country capacity for Government institutions and the private sec-tor to coordinate and manage the road network efficiently;

• Ensure sustainable funding for the road sector program; • Road Sector Investment decisions will be based on sound socio-economic and

environmental principles that are sustainable; • Enhance the operational efficiency of the road network to promote economic

growth and the delivery of social services; • Integration of the road network with other modes of transport, which aims at

efficient transport system; • Development of comprehensive Road Safety Programme; • Mitigation of the negative environmental and social impact of the road related

activities. RSDP PERFORMANCE INDICATORS

• Road network condition mix improved from 35% good, 45% fair, and 20% poor in 2000 to 70% good, 20% fair, and not more than 10% poor by 2005.

• Average travel time between district capitals reduced by at least 15%. • Ratio of all road works carried out in the 4 northern regions over the grand to-

tal at least maintained over the 4-year period. • Percentage of communities within 10 km of a maintainable road increased by

10%. • The part of the feeder road network not maintained reduced by half. • Compliance with axle load limitations increased by 20%. • Number of vehicles inspected annually increased to 80% of total number of

vehicles registered

ANNEX 4-MEETING SCHEDULE FIELD STUDY

ANNEX 4 - MEETING SCHEDULE FIELD STUDY In the table below the meeting schedule of the field mission is presented. The field mission coincided with the World Bank’s mid-term review of RSDP. As a result the Joint Evaluation follow-up team could attend a number of jointly organised sessions, as outlined below. Date Morning Afternoon 11 April MRT Donor Co-ordination Unit, Danida MRT and agencies 12 April RSDP mid-term review: Presentation on

Institutional Reform Study RSDP mid-term review joint meeting: MRT, GHA, DFR, DUR, Road Fund, DVLA, NRSC

13 April European Commission IT Consultants 14 April MRT Monitoring and Evaluation Unit DUR, GHA, DFR 15 April RSDP mid-term review: Mid-Term Re-

view Workshop Ghana Road Fund

16 April 17 April

Review of documents, team discussion and meeting with Mr Abbey Sam

18 April Danida, RSDP mid-term review: Urban Transport Study

RSDP mid-term review: National Trans-port Policy, MRT

19 April RSDP mid-term review: Baseline studies of the impact of RSDP roads on Poverty Reduction

RSDP mid-term review: Road Conces-sioning Study

20 April Review of documents, debriefing at MRT

ANNEX 5-OVERVIEW ONGOING STUDIES IN THE TRANSPORT SECTOR

ANNEX 5 - OVERVIEW ONGOING STUDIES IN THE TRANSPORT SECTOR In the table below selected ongoing and recently completed studies in the transport sector are presented. Nr Title Client-

consultant Status

1 Review of axle load control policy & assistance in the implementation of the action plan

MRT/IT Transport

Supplementary report, 1st draft January 2005

2 Evaluation of the Management and Financing Ar-rangements for Road Maintenance

MRT-Danida/Mr Abbey Sam

Final Report, October 2003

3 Institutional Review of Mainstreaming of Envi-ronment, Social, Health and Safety Issues in the Roads Sector in Ghana

MRT-DFID/Atkins

Final Report, January 2005

4 Review of Local Construction Industry

MRT-M&E unit, Mr E Twumasi

Findings presented March/April 2004 in-spections

5 Proposals for the Reconstitution of the Road Con-tractors Classification Committee

MRT Findings presented Sep-tember 2003

6 Road Maintenance Project - Promotion Of Small And Medium Scaled Enterprises

GHA-GTZ/Mr Abbey Sam

March 2004

7 Preparation of the Economic, Financial, Technical and Administrative Framework for Road Conces-sion Projects in Ghana

MRT-World Bank/PWC

Interim Report, Novem-ber 2004

8 Institutional Study of the Transport Sector MRT-ADB/WSP

Interim Phase 1 Report, April 2005

9 Review of the Potential Impact of Multi-Donor Budget Support on the Road Sector

DFID/Terry Lawrence

Final Report published September 2003

10 Social and Environmental Monitoring Report on IDA Development and Maintenance Projects

GHA Report published Febru-ary 2005

11 National Baseline Studies of RSDP on Poverty Reduction

MRT-World bank/Optimal Consultancy Services

Second Progress Report, April 2005

12 Baseline Studies and Monitoring the Impact of the RSDP Roads on Poverty Reduction

MRT-World bank/Vision Consultancy

Interim results presented in May 2005

13 Social and Environmental Monitoring Report on IDA Development and Maintenance Projects

GHA Report published Febru-ary 2005

ANNEX 6–POLICY LETTER FEBRUARY 1996

ANNEX 6 - POLICY LETTER FEBRUARY 1996 Mr James Wolfenson World Bank 1818 H Street, N.W. Washington DC, 20433 U.S.A. RE: GHANA’S HIGHWAY SECTOR POLICIES AND OBJECTIVES This letter summarises the various policy measures which the Government will pur-sue to support implementation of its road sector strategy for 1995-2000. The letter deals first with the Government's medium-term economic and social development policies, second, with the background to the road sector; third with the Government's objectives for the road sector; and finally, with the various road sector policy issues, which the Government intends to tackle during the period up to 2000. Medium-Term Economic and Social Development Policies These policies have been designed to support the Government’s long-term vision which hopes to see Ghana transformed into a middle-income country by 2020. The medium-term programme supporting this vision, and covering the five years 1996-2000, aims to consolidate the gains so far secured over the past decade and to lay strong foundations for economic growth and development in the subsequent two decades. During the past decade, investment in economic infrastructure - energy, transport and communications - has dominated the Public Investment Programme (PIP). However, because of the excessive rot of the 1960s and 1970s, much still re-mains to be done. The current condition of infrastructure facilities and services still remain poor. One of the cornerstones of the medium term strategy is to promote more rapid rural development. Among other things, this will require provision of better transport ser-vices in rural areas, together with provision of well maintained roads and tracks. Sus-tainable economic growth at the national level will depend on creating an enabling environment which encourages private sector initiative, improves transport and communications facilities, and reduces Ghana's dependence on external aid, whilst maximising the effectiveness of the aid which is currently contributing to the coun-try’s development objectives. In the above context, transport and communications - including roads - will continue to receive a high allocation of development expenditures, although the proportion will be slightly lower than in previous years.


Background to the Road Sector Road is the dominant form of inland transport, carrying about 94 percent of freight and 97 of passenger traffic. The balance of the traffic is mainly handled by the rail-ways. The private sector dominates the road transport industry and carries an esti-mated 85-90 percent of goods and passenger traffic, while the three state-owned parastatal companies carry the remaining 10-15 percent. However, in spite of its importance, the road sector is plagued by a serious lack of funds for maintenance, road sector institutions which suffer from important weak-ness, and a large backlog of rehabilitation work. In spite of previous efforts to catch up, 31 percent of trunk roads are still classified as being in poor condition (i.e. require rehabilitation or reconstruction), while 60 percent of rural roads are still in poor con-dition. Much work needs to be done to bring this down to the target level of less than 10 percent in poor condition set for 2005. Objectives for the Road Sector The Government’s principal objective is to clear the large backlog of maintenance on a sustainable long-term basis. To that end, it has adopted the following objectives for the road sector: (I) strengthening the organisational structure and institutional capacity of the various road agencies; (ii) clearing the backlog of rehabilitation and periodic maintenance work; (iii) basing road sector investment decisions on sound economic principles, and giving highest priority to routine and periodic maintenance; (iv) im-proving cost recovery to ensure that maintenance can be funded on a sustainable ba-sis; (v) promoting greater private sector involvement in both execution of works and financing of transport infrastructure; (vi) reducing dependence on foreign technical assistance and increasing training and performance of local staff; (vii) improving ca-pacity to evaluate the environmental impact of road schemes and design mitigation measures, (viii) regaining sector-wide discipline in expenditure management and con-trol, (ix) streamlining transport regulations, enforcing of axle weight regulations, en-hancing road safety, and improving traffic management; (x) giving priority to devel-opment of non-motorised transport and improving facilities for their use and (xi) strengthening donor co-ordination, and simplifying and improving procurement, monitoring and reporting procedures for donor supported and Government of Ghana programs. Proposed Policy Actions Institutional Capacity and Human Resource Development. In line with its objectives for the road sector, Government will (I) strengthen the institutional capacity of the three road agencies through staff training (both locally and abroad); (ii) develop the local construction and consulting industry, also through training (in both technical and business management subjects) and (iii) strengthen the three road agencies by


strengthening financial discipline, increasing transparency and managerial accountabil-ity, and making Ghana Highway Authority (GHA) more autonomous. As part of this policy, Government will reorganise the Ministry of Roads and Highways (MRH), GHA, Department of Feeder Roads (DFR) and Department of Urban Roads (DUR) to enhance their efficiency and effectiveness. In the case of DFR and DUR, this would be carried out in line with the Government’s stated policy of decentralisation. In the process, Government will also restructure the Road Fund and strengthen ar-rangements for disbursement and auditing. Government will also reinstate the auton-omy and Board of the Ghana Highway Authority – and take other steps to ensure fi-nancial discipline – to emphasise the role of the Authority as a commercial, customer-oriented agency. These reforms will be written into a Roads & Highways Act, based on the current Ghana Highway Authority Decree, and other relevant legislation. Clearing the Backlog. Since the road sector provides broad based support to the eco-nomic development of Ghana – which emphasises accelerated growth of agriculture, tourism, trade and industry – the Government’s plan is to clear the backlog of main-tenance and, by introducing sustainable maintenance policies, to stabilise the condi-tion of the road network. The target for overall road conditions by 2005 is to have at lest 70 percent of the network in good condition, some 20 percent in fair condition and no more than 10 percent in poor condition. In that connection, Government has developed a medium term expenditure programme for 1995-2000 amounting to US$ 2.3 billion. This is an ambitious programme and would require an enormous increase in the level of donor financing compared to current levels. However, under the pro-posed Highway Sector Investment Project, Government has adopted a downsized programme amounting to US$ 1.56 billion in light of the resources likely to be avail-able (both locally and from external donors), and bearing in mind the medium term implementation capacity of the various road sector institutions. Of this amount, ap-proximately US$ 600 million (or 39 percent) would be for routine and periodic main-tenance, US$ 220 million (or 14 percent) for rehabilitation (including bridges), US$ 640 million (or 41 percent) for reconstruction and development and US$ 97 million (or 6 percent) for administration. Government will contribute US$ 890 million equivalent from its own resources including the Road Fund and the balance, US$ 670 million, is expected to be financed from external sources. Investment Priorities. To maximise net benefits to society, Government will base in-vestment decisions on sound economic principles, while at the same time giving due weight to an equitable regional distribution of road access. To protect the substantial investment already made in road infrastructure, highest priority will be given to rou-tine and periodic maintenance, followed by rehabilitation, reconstruction, upgrading and construction of new roads (mostly providing missing links in the existing net-work). Cost Recovery. The Government’s economic recovery programme emphasises the need to return to a system of market prices and to aim for full cost recovery for all


economic services. In the road sector, the past pattern has been to finance mainte-nance and rehabilitation from general revenues. Since 1985, some of the revenues, were paid into a Road Fund. To meet the high financial requirements of the road sta-bilisation program, Government will gradually increase road user charges to ensure that all routine and periodic maintenance costs can be financed from the Road Fund. In particular, Government will progressively increase the fuel levy and introduce a new heavy vehicle license fee to ensure that heavy vehicles pay in full for the damage thy do to the road pavement. In urban areas, Government is already examining the possibility of introducing parking charges to help finance urban road schemes. For routine and period maintenance, the Road Fund will need to mobilise at least US$ 45 million in 1996, US$ 71 Million in 1997, US$ 99 million, in 1998, US$ 116 million in 1999 and US$ 126 million in 2000. This will be achieved by rationalising and increas-ing the Road Fund levy on fuel annually to achieve these stated targets. We expect this outlay of Road Fund will lead to an increase from the present level of 22 percent to 83 percent in 2000. To achieve the 1996 target, it is estimated that the Road Fund fuel levy will have to increase from the present average level of Cedis 16 (US Cents 1.5) per litre to Cedis 60 (US Cents 4.0) per litre. This increase could be achieved without necessarily increasing the pump price of fuel but resorting to an internal redistribution of the components of the pump price adjustment period (to full cost recovery), the balance of funds required for maintenance will come from external financing and from the Government’s consolidated revenues. Private Sector Contracting. To ensure cost-effective and efficient implementation of its programs in the road sector, Government intends to have an increasing share of civil works carried out by the private sector (domestic and international contractors). In this regard, Government will, by 1999, undertake all major roadwork and 90 per-cent of all road maintenance works through private sector contractors, rather than through force account. Government will accordingly reduce road agency staff in line with their reduced work load. Private Sector Financing. Government recognises that the shortage of public revenues limits its ability to meet the road sector’s requirements. In this regard, it intends to bring the private sector to invest in, and operate, selected roads under concession agreements. The proposed Roads & Highways Act will provide the enabling legisla-tion to permit Government to do this. Dependency on Foreign Technical Assistance. Ghana has increasingly depended on foreign technical assistance to carry out its accelerated development programs. The gradual transfer of work to Ghanaian nationals anticipated under these programs, to-gether with associated transfer of technology, has not been satisfactory. Govern-ment’s policy is therefore to enhance the sustainability of its development projects by internalising as much of the preparation, implementation, operation and management of its development projects by minimising long term foreign technical assistance and creating the right incentives to retain qualified and experienced local personnel.


Environmental Assessment. The Government is mindful of the need to take the po-tential environmental impacts of road projects into account, and to use this informa-tion to redesign in consultation with the Ministry of Environment. First, Government will carefully monitor design and implementation of selected road projects which might have significant environmental impacts. Second, based on this hands-on ex-perience and available documentation on the environmental impacts of road consid-erations to be taken into account in design and courses based on the guideline. All concerned staff in the road agencies will be exposed to the training courses, and con-sultants will also be invited to participate. Control of Expenditure. A number of issues continue to persist in the area of finan-cial management and contract administration. There is a substantial imbalance be-tween approved budgets and the value of work done in the road sector. New projects are initiated each year, even though a large number of projects in the portfolio remain uncompleted. Outstanding payments to contractors from the previous year take up a high proportion of the annual approved budget. Finally, issuance of variation orders and price escalation due to delayed completion times result in substantial cost in-creases compared to original contract sums. To deal with these issues, Government will reach agreement with contractors on the settlement of arrears that have accrued up to December 1995. In the medium term the following additional actions will be taken: (I) clean up the existing portfolio by giving high priority, after maintenance, to allocation of resources to projects that are nearly complete and where necessary and feasible, suspending or terminating enviable contract; (ii) minimise award of new con-tracts as long as there are outstanding payments to contractors on ongoing projects and unless adequate design and engineering details have been prepared in advance and adequate provision of funds made for the duration of the contract; (iii) limit the cumulative value of variation orders issued on any contract to 25 percent of the origi-nal contract sum; (iv) enhance the capability of the road agencies in planning, pro-gramming and budgeting for mullet-year contracting; and (v) develop and install ap-propriate accounting and management information systems for monitoring the per-formance of each contract. Road Transport Regulations. The Government is in favour of encouraging private sector initiative, reorganising public sector organisations to make them more efficient and effective, and privatising parastatals which do not need to remain in public hands. This policy will continue to be applied to the transport sector, where passenger and freight transport has been deregulated, and the private sector encouraged to provide an increasing share of capacity. There are two areas where further improvements are planned: axle-weight controls and road safety. First, Government intends, within two years, to expand weight controls on all major roads by installing weigh bridges at key road locations, ports, production centres, key border crossing, and cocoa, wood and log collection centres. The Government also intends to explore the feasibility of hav-ing weigh bridges operated under contract by a private company. Second, the institu-


tional arrangements for dealing with road safety will be strengthened. Government will review the function and composition of the National Roads safety Committee, put the Committee on a firm legislative basis by including it in the proposed Road & Highways Act, and will provide modest funds to the Committee through the restruc-tured Road Fund. Non-Motorised Transport. The Government is committed to continuing its support for non-motorised transport initiated under on-going Bank-financed projects. This will include developing and promoting non-motorised transport, as well as providing better facilities in urban areas for safe and effective us of non-motorised transport. Donor Co-ordination. Government recognises the value of having a co-ordinated road sector programme supported by all donors. To that end, Government will organise a road sector donors conference each year to streamline dialogue with donors and report on progress on implementation of, the road sector program, and projected plans for subsequent years. In the long term, Government intends to adopt common arrangements for implementing, monitoring, accounting, and reporting on all donor assisted and Government of Ghana projects. Yours sincerely, Kwame Peprah Minister of Finance

ANN

EX 7

–SU

MM

AR

Y O

F AC

TIO

NS

TAKE

N M

ATR

IX

ANN

EX

7 -

SUM

MAR

Y O

F AC

TIO

NS

TAK

EN

MAT

RIX

R

ecom

men

datio

nAc

tion

take

n 20

00-‘0

2 Sc

ore

Actio

n ta

ken

2003

-‘050

5 Sc

ore

Tot

al

scor

e 1.

M

onito

ring

and

evalu

a-tio

n of

RSD

P

• Th

e M

inist

ry o

f Roa

ds a

nd T

rans

port

and

its a

gen-

cies h

ave

take

n ow

ners

hip

of R

SDP

and

have

in

close

co-

oper

atio

n w

ith th

e do

nor c

omm

unity

, es-

peci

ally

the

Wor

ld B

ank,

pre

pare

d th

e pr

ogra

mm

e. A

ll do

nor a

ctiv

ities

in th

e ro

ad su

b-se

ctor

are

par

t of

the

RSD

P.

• RS

DP

defin

es o

bjec

tives

. The

ext

ent t

o w

hich

thes

e ob

ject

ives

are

mea

sura

ble

stro

ngly

relat

es to

the

quali

ty o

f the

per

form

ance

indi

cato

rs (s

ee b

elow

). Th

e ex

tent

to w

hich

the

obje

ctiv

es a

re a

chiev

able

is qu

estio

nabl

e, as

the

scop

e of

RSD

P is

quite

am

bi-

tious

. •

So fa

r, pe

rfor

man

ce in

dica

tors

hav

e on

ly pa

rtiall

y be

en u

sed

to st

ruct

urall

y m

onito

r per

form

ance

. The

ro

ad c

ondi

tion

mix

is m

onito

red

on a

n an

nual

basis

. Fo

r oth

er p

erfo

rman

ce in

dica

tors

, at b

est s

tudi

es a

re

plan

ned

to g

athe

r dat

a fo

r mon

itorin

g pu

rpos

es. N

o ba

selin

e st

udie

s hav

e be

en d

one.

Med

ium

•

In A

pril

2005

the

mid

-term

revi

ew o

f RSD

P to

ok

plac

e. Bi

later

al m

eetin

gs w

ere

held

bet

wee

n a

Wor

ld B

ank

deleg

atio

n an

d G

oG re

pres

enta

tives

an

d a s

eries

of j

oint

mee

tings

in w

hich

a br

oad

rep-

rese

ntat

ion

of th

e do

nors

par

ticip

ated

took

plac

e. Ti

min

g is

rath

er la

te fo

r the

mid

-term

revi

ew, l

eav-

ing

limite

d tim

e to

take

rem

edial

actio

n, if

nee

ded.

•

Alth

ough

pro

gres

s is m

ade i

n re

latio

n to

the s

tate

d RS

DP

objec

tives

, a g

ener

al im

pres

sion

prev

ails t

hat

prog

ress

is re

lativ

ely sl

ow, e

spec

ially

in re

latio

n to

th

e po

licy

refo

rm ac

tiviti

es.

• Th

e RS

DP

defin

ed p

erfo

rman

ce in

dica

tors

are

not

used

syste

mat

ically

to m

onito

r pro

gres

s of t

he p

ro-

gram

me.

Low

-m

ediu

m

Low

-m

ediu

m

2.

Dev

elop

a se

lf-m

onito

ring

syst

em

• A

wid

e ra

nge

of ac

tiviti

es re

lated

to m

onito

ring

and

evalu

atio

n ar

e ta

king

plac

e at

MRT

and

its ag

encie

s, e.g

. ann

ual r

eview

repo

rts as

inpu

t for

the

Don

ors

Conf

eren

ces,

mon

thly,

qua

rterly

and

annu

al pr

ogre

ss

repo

rts, p

rogr

amm

e im

plem

enta

tion

team

(PIT

) m

eetin

gs an

d ag

ency

impl

emen

tatio

n te

am (A

IT)

mee

tings

and

mid

-term

pro

gram

me

evalu

atio

n.

• A

t MRT

the

mon

itorin

g an

d ev

aluat

ion

unit

has e

x-pa

nded

its s

taff.

•

No

struc

tura

l self

-mon

itorin

g sy

stem

is in

plac

e.

Low

-m

ediu

m

• So

me

of th

e pr

omisi

ng in

itiat

ives

rega

rdin

g se

lf-m

onito

ring

that

wer

e lau

nche

d at

the

begi

nnin

g of

RS

DP

have

not

yet

bee

n fu

lly in

tegr

ated

in th

e op

-er

atio

ns o

f MRT

and

its ag

encie

s.

• Th

e pl

anne

d Bu

dget

ing

and

Publ

ic Ex

pend

iture

M

anag

emen

t Sys

tem

s (BP

EM

S) h

as n

ot b

ecom

e op

erat

iona

l yet

. •

The

two

trans

port

and

pove

rty st

udies

that

wer

e re

cent

ly lau

nche

d w

ill lo

ok at

the

impa

ct o

f par

t of

the

RSD

P pr

ogra

mm

e on

pov

erty

redu

ctio

n.

Low

-m

ediu

m

Low

-m

ediu

m

ANN

EX 7

–SU

MM

AR

Y O

F AC

TIO

NS

TAKE

N M

ATR

IX

3.

Purs

ue re

or-

gani

satio

n of

th

e ro

ad su

b-se

ctor

• G

HA

staf

f was

redu

ced

to 3

,033

in 2

002

(staf

f lev

el in

19

99 w

as 3

,589

). H

owev

er, t

here

is st

ill a

vast

amou

nt o

f ex

cess

staf

f (re

quire

d sta

ff is

estim

ated

at 1

,744

). •

The e

nvisa

ged

retre

nchm

ent p

rogr

amm

e has

not

bee

n re

al-ise

d. In

abse

nce

of an

agre

emen

t on

a ret

renc

hmen

t pro

-gr

amm

e, fo

cus i

s on

how

to u

se ex

cess

staf

f in

optim

al w

ay, e

.g. th

roug

h us

ing

staff

for m

anni

ng o

f weig

hbrid

ges.

• Th

e sala

ry g

ap b

etw

een

the p

rivat

e and

pub

lic se

ctor

is

wid

enin

g.

Low

-m

ediu

m

• Th

e ret

renc

hmen

t pro

gram

me,

whi

ch w

as sc

hedu

led fo

r th

e RSD

P im

plem

enta

tion

perio

d di

d no

t mat

erial

ise in

th

e 200

3-05

per

iod

eithe

r and

seem

s to

have

lost

its

mom

entu

m. S

taff

redu

ctio

ns ar

e bas

ed o

n na

tura

l re-

tirem

ent,

resig

natio

n, si

ckne

ss an

d de

ath

and

are r

ela-

tively

lim

ited

in si

ze, a

s ind

icate

d in

the t

able

belo

w.

• Th

e sala

ry g

ap b

etw

een

publ

ic an

d pr

ivat

e sec

tor i

s not

na

rrow

ing.

• Th

e ide

a of e

stabl

ishin

g on

e roa

d au

thor

ity, i

ncor

pora

t-in

g th

e act

iviti

es o

f DFR

and

DU

R in

to G

HA

, is s

till

deba

ted.

Low

-m

ediu

m

Low

-m

ediu

m

4.

Dev

elop

a b

al-an

ced

train

ing

prog

ram

me

• A

stud

y on

orga

nisa

tiona

l dev

elopm

ent a

nd in

-cou

ntry

tra

inin

g fo

r sta

ff in

the r

oad

sub-

sect

or (O

DIC

T-P)

in-

clude

d a c

o-or

dina

ted

train

ing

prog

ram

me f

or th

e per

iod

2002

-04,

whi

ch w

as p

rodu

ced

base

d on

train

ing

need

s as-

sess

men

t.

Med

ium

•

MRT

is m

akin

g an

effo

rt to

cent

rally

man

age t

he tr

ain-

ing

activ

ities

and

MRT

and

its ag

encie

s sta

ff, es

pecia

lly

mid

dle m

anag

emen

t, ha

ve b

enef

ited

from

train

ing

pro-

gram

mes

. The

fund

ing

of th

e tra

inin

g pr

ogra

mm

es re

-m

ains a

don

ors’

affa

ir.

Med

ium

M

ediu

m

ANN

EX 7

–SU

MM

AR

Y O

F AC

TIO

NS

TAKE

N M

ATR

IX

5.

Follo

w c

autio

us

appr

oach

to-

war

ds d

ecen

-tra

lisat

ion

• D

UR

is ex

pand

ing

its sc

ope f

rom

cove

ring

six to

eigh

t m

unici

palit

ies.

• Fo

r fee

der r

oads

a pi

lot s

tudy

was

laun

ched

focu

sing

on si

x di

strict

s. A

s an

inte

rmed

iate s

tep

tow

ards

full

dece

ntra

lisa-

tion

the a

rea c

once

pt is

intro

duce

d.

• Lo

cal c

omm

uniti

es an

d in

tere

st gr

oups

hav

e par

ticip

ated

in

plan

ning

of r

ural

road

s int

erve

ntio

ns th

roug

h RP

M.

• Th

e ext

ent t

o w

hich

abov

e men

tione

d ap

proa

ch is

caut

ious

re

main

s que

stion

able,

espe

cially

giv

en th

e lac

k of

a cle

ar fi

-na

l res

ult o

f the

dec

entra

lisat

ion

proc

ess a

nd a

time p

ath

tow

ards

this.

The

area

conc

ept c

an b

e reg

arde

d as

an in

-te

rmed

iate,

caut

ious

step

tow

ards

full

dece

ntra

lisat

ion.

•

A d

ebat

e on

the o

ptim

al lev

el of

dec

entra

lisat

ion

is m

issin

g.

Med

ium

-hi

gh

• W

ith th

e Loc

al G

over

nmen

t Ser

vice

Act

200

3 in

plac

e, in

dica

tions

from

the M

inist

ry o

f Loc

al G

over

nmen

t and

Ru

ral D

evelo

pmen

t (M

LGRD

) are

that

the L

GS

coul

d be

ope

ratio

nal w

ithin

1-3

year

s. A

fter t

hat t

ime,

mos

t sta

ff at

regi

onal

and

distr

ict le

vels

will

be t

rans

ferre

d fro

m th

e lin

e min

istrie

s to

the L

GS.

•

A N

atio

nal D

ecen

tralis

atio

n A

ctio

n Pl

an d

evelo

ped

by

MLG

RD an

d en

dors

ed b

y Cab

inet

in 2

003

seek

s to

ad-

dres

s a n

umbe

r of d

ecen

tralis

atio

n im

plem

enta

tion

is-su

es, i

nclu

ding

a di

strict

dev

elopm

ent f

undi

ng m

odali

ty

that

aim

s at m

akin

g ad

ditio

nal r

esou

rces

avail

able

to lo

-ca

l gov

ernm

ents.

•

The d

ecen

tralis

atio

n po

licy h

as le

d D

FR an

d D

UR

to

purs

ue d

ecen

tralis

atio

n to

the D

istric

t Ass

embl

ies an

d M

unici

palit

ies re

spec

tively

. A g

radu

al ap

proa

ch is

pur

-su

ed, w

ith D

UR

and

DFR

step

by s

tep

expa

ndin

g th

eir

dece

ntra

l sco

pe, a

s out

lined

belo

w. A

disc

ussio

n on

the

optim

al lev

el of

dec

entra

lisat

ion

is ab

sent

. •

DU

R co

ntin

ues t

o ex

pand

its s

cope

from

eigh

t mun

ici-

palit

ies in

200

2 to

15

mun

icipa

lities

in 2

005.

The

focu

s of

the c

ollab

orat

ion

is on

main

tena

nce o

f urb

an ro

ads.

Rout

ine m

ainte

nanc

e is n

ow th

e ful

l res

pons

ibili

ty o

f the

m

unici

palit

ies, w

hile

DU

R ch

ecks

per

iodi

c main

tena

nce.

• D

FR h

as ex

pand

ed th

e esta

blish

men

t of D

WD

s, by

ad

ding

thre

e Nor

ther

n di

strict

s (W

est M

ampr

usi,

East

Mam

prus

i and

Gus

hieg

u).

The e

stabl

ishm

ent o

f DW

Ds

is in

line

with

GoG

’s po

licy o

f cre

atin

g th

e LG

S. T

he

DW

Ds a

re st

affe

d an

d eq

uipp

ed.

• Cu

rrent

ly, D

FR is

repr

esen

ted

by ar

ea en

gine

ers i

n 70

ar

eas,

as ag

ainst

40 ar

eas i

n 20

02.

• A

ccor

ding

to th

e Roa

d Fu

nd A

ct, d

irect

disb

urse

men

t to

DA

s is p

erm

itted

but

, with

the

exce

ptio

n of

som

e fun

ds,

this

facil

ity h

as n

ot b

een

used

.

Me-

dium

-hi

gh

Me-

dium

-hi

gh

ANN

EX 7

–SU

MM

AR

Y O

F AC

TIO

NS

TAKE

N M

ATR

IX

6.

Dev

elop

reali

s-tic

am

bitio

n lev

el of

RSD

P-pl

ace

prio

rity

on m

ainte

nanc

e

• Th

e sco

pe o

f RSD

P is

ambi

tious

: US$

1.2

bill

ion

for a

th

ree-

year

pro

gram

me.

Giv

en th

e size

of t

he fi

nanc

ing

gap

(out

of t

he p

rogr

amm

ed le

vels

of U

S$ 4

43 m

illio

n, U

S$

270

mill

ion

is co

mm

itted

, lea

ving

a fin

ancin

g ga

p of

US$

16

6 m

illio

n in

200

2) it

can

be st

ated

that

the f

inan

cing

ca-

pacit

y is i

nsuf

ficien

tly ta

ken

into

cons

ider

atio

n.

Low

-m

ediu

m

• Th

e RSD

P im

plem

enta

tion

perio

d w

as ex

tend

ed fr

om a

3-ye

ar p

erio

d to

a 5-

year

per

iod,

with

year

of c

ompl

etio

n no

w se

t at 2

005.

Fun

ding

gap

s hav

e rem

ained

, res

ultin

g in

the i

nabi

lity t

o ca

rry o

ut p

rogr

amm

ed ac

tiviti

es.

Low

-m

ediu

m

Low

-m

ediu

m

7.

Dev

elop

com

-m

on a

ppro

ach

for f

easib

ility

st

udie

s

• A

com

mon

appr

oach

for f

easib

ility

analy

sis h

as n

ot b

een

deve

lope

d. H

DM

-4 is

bec

omin

g th

e new

stan

dard

, at l

east

for t

runk

and

urba

n ro

ads.

How

ever

, inp

ut d

ata u

sed

in re

-ce

nt fe

asib

ility

stud

ies sh

ow a

disc

repa

ncy,

i.e. i

n op

portu

-ni

ty co

st of

capi

tal u

sed

(10%

, 12%

, 15%

) and

the b

enef

its

inclu

ded

in ca

lculat

ion

(veh

icle

oper

atin

g co

sts, t

rave

l tim

e sa

ving

s, ac

ciden

t red

uctio

n sa

ving

s, ad

ditio

nal s

ocio

-ec

onom

ic be

nefit

s).

• Ef

forts

are m

ade t

owar

ds a

calib

ratio

n of

HD

M-4

to ad

apt

to lo

cal c

ircum

stanc

es. F

urth

erm

ore,

engi

neer

ing

staff

is tra

ined

in u

sing

HD

M-4

. •

Feed

er ro

ads,

give

n th

e low

-vol

ume t

raffi

c cha

ract

er, a

re

asse

ssed

diff

eren

tly b

ased

on

a par

ticip

ator

y app

roac

h.

Low

-M

ediu

m

• H

DM

-4 is

pro

gram

med

to b

e use

d fo

r pre

para

tion

of

the 2

006-

2010

Stra

tegi

c Plan

of t

he ro

ad su

b-se

ctor

. •

Don

ors c

ontin

ue to

use

their

ow

n ap

proa

ch to

war

ds

feas

ibili

ty st

udies

in th

e roa

d su

b-se

ctor

. •

Tech

nica

l ass

istan

ce to

GH

A h

as h

elped

stre

amlin

ing

and

stand

ardi

satio

n in

GH

A’s

main

tena

nce p

roce

dure

s.

Med

ium

M

ediu

m

ANN

EX 7

–SU

MM

AR

Y O

F AC

TIO

NS

TAKE

N M

ATR

IX

8.

Prio

ritise

road

pr

ojec

ts b

ased

on

soun

d pr

in-

cipl

es

• N

o tra

nspa

rent

prio

ritisa

tion

proc

ess i

s in

plac

e. Pr

iorit

isa-

tion

is a c

ombi

natio

n of

econ

omic

justi

ficat

ion

and

‘pol

iti-

cal’

proc

esse

s. Th

e lat

ter a

pplie

s bot

h to

allo

catio

n to

the

agen

cies a

nd to

allo

catio

n w

ithin

the a

genc

ies.

• A

t GH

A p

re-fe

asib

ility

stud

ies fo

r tru

nk ro

ad n

etw

ork

wer

e car

ried

out.

Capi

tal a

nd m

ainte

nanc

e exp

endi

ture

s are

ra

nked

bas

ed o

n ec

onom

ic pr

incip

les (I

RR) u

sing

HD

M-4

. Lo

w tr

affic

ked

– po

or co

nditi

on ro

ads t

hat c

anno

t be c

on-

sider

ed w

ithin

the p

riorit

y ran

king

syste

m o

f hig

h tra

ffick

ed

road

s are

liste

d as

‘spe

cial c

onsid

erat

ion

case

s’.

• A

prio

ritisa

tion

met

hodo

logy

for f

eede

r roa

ds, t

he R

oad

Prio

ritisa

tion

Mod

el (R

PM),

has b

een

deve

lope

d, ta

king

in

to ac

coun

t the

prio

rities

of l

ocal

peop

le. R

PM is

appl

ied

on a

pilo

t bas

is an

d D

FR is

insti

tutio

nalis

ing

the m

odel.

•

For u

rban

road

s a co

mbi

natio

n of

econ

omic

crite

ria an

d cr

iteria

cons

ider

ing

the i

ncom

e lev

els o

f tar

gete

d be

nefic

iaries

is u

sed

to p

riorit

ise ac

tiviti

es.

Med

ium

•

GH

A an

d D

UR

cont

inue

to u

se a

com

bina

tion

of ec

o-no

mic

justi

ficat

ion

and

socio

-eco

nom

ic cr

iteria

, not

ably

acce

ssib

ility

and

oppo

rtuni

ty, f

or th

eir p

riorit

isatio

n pr

oces

s. •

Unt

il de

cent

ralis

atio

n de

velo

ps fu

rther

impe

tus,

DFR

w

ill es

pous

e the

virt

ues o

f the

RPM

and

its D

istric

t Par

-tic

ipat

ion

proc

ess (

by co

nsul

tatio

n). A

s suc

h it

rem

ains

outsi

de th

e dist

rict p

lanni

ng p

roce

ss an

d is

only

sus-

tain

ed b

y DFR

and

dono

r res

ourc

es. A

s suc

h it

has b

een

appl

ied, i

n w

hole

or in

par

t, by

DFR

to o

ther

feed

er

road

dev

elopm

ent p

rojec

ts fu

nded

by o

ther

don

ors

(IDA

), D

anid

a and

EU

) and

is c

urre

ntly

bein

g us

ed b

y K

fW co

nsul

tant

s to

prio

ritise

feed

er ro

ads i

n 13

dist

ricts

of A

shan

ti, B

rong

Aha

fo an

d V

olta

Reg

ions

.

Med

ium

M

ediu

m

9.

Har

mon

ise

road

stan

dard

s •

Road

des

ign

stand

ards

hav

e not

bee

n ha

rmon

ised

yet.

Ac-

tions

tow

ards

har

mon

isatio

n of

des

ign

stand

ards

are (

i) a

Road

Des

ign

Gui

de, (

ii) st

udies

for h

arm

onisa

tion

in p

ro-

gres

s, i.e

. ‘Te

chni

cal A

ssist

ance

tow

ards

an E

fficie

nt, E

ffec-

tive a

nd S

usta

inab

le M

anag

emen

t of M

ainte

nanc

e in

the

Road

Sub

-Sec

tor’.

•

Des

ign

stand

ards

are s

ubjec

t to

last-m

inut

e cha

nges

, e.g.

th

e des

ign

for t

he co

nstru

ctio

n of

one

-lane

brid

ges,

whi

ch

need

ed to

be ‘

adju

sted’

to tw

o-lan

e brid

ges.

• H

arm

onisa

tion

of m

ainte

nanc

e sta

ndar

ds w

as d

iscus

sed

early

200

2 am

ongs

t MRT

and

the a

genc

ies. A

s a re

sult

GH

A h

as ad

juste

d its

rout

ine m

ainte

nanc

e fro

m U

S$ 1

4 to

U

S$ 8

mill

ion.

Low

-m

ediu

m

• Th

e sta

tus o

n ro

ad st

anda

rds r

emain

s mor

e or l

ess t

he

sam

e com

pare

d to

the p

revi

ously

revi

ewed

per

iod.

Low

-m

ediu

m

Low

-m

ediu

m

ANN

EX 7

–SU

MM

AR

Y O

F AC

TIO

NS

TAKE

N M

ATR

IX

10. F

urth

er im

-pr

ove

road

fu

nd p

erfo

rm-

ance

• Si

nce 2

000

the r

eleas

es to

the G

RF h

ave

been

on

time.

• Fu

el lev

ies w

ere r

aised

in 2

001

by 8

0 Ce

dis:

from

150

to

230

Cedi

s. N

o in

crea

se in

fuel

levies

in 2

002

has t

aken

pl

ace.

Dela

y in

incr

ease

in fu

el lev

ies an

d de

prec

iatio

n of

th

e Ced

i aga

inst

the U

S$ h

as b

roug

ht fu

el lev

y lev

el to

so

me U

S Ce

nts 2

.7, w

hich

is fa

r fro

m th

e US

Cent

s 9.5

to

whi

ch th

e lev

y sho

uld

grad

ually

mov

e fro

m 1

996

to

2002

. •

The a

lloca

tion

of fu

nds i

s sub

ject o

f disc

ussio

n at

the R

oad

Fund

Boa

rd m

eetin

gs, i

n w

hich

priv

ate a

nd p

ublic

sect

or

parti

es ar

e rep

rese

nted

. •

In o

rder

to cr

eate

supp

ort f

or th

e GRF

, a se

ries o

f ‘fo

rum

s’ in

the r

egio

ns is

org

anise

d to

whi

ch al

l rele

vant

stak

e-ho

lder

s are

invi

ted

in o

rder

to d

iscus

s the

ben

efits

of t

he

GRF

.

Med

ium

-hi

gh

• Fu

el lev

ies w

ere r

aised

in 2

003

to 4

00 C

edis

per l

itre,

whi

ch w

as an

incr

ease

of 7

0% in

Ced

i ter

ms.

In 2

004

the

GoG

did

not

impl

emen

t the

plan

ned

fuel

levy i

ncre

ase,

but i

n 20

05 fu

el lev

ies w

ere i

ncre

ased

by 5

0% to

600

Ce

dis p

er li

tre, w

hich

is eq

uiva

lent t

o U

S Ce

nts 6

.5. T

his

amou

nt st

ill fa

lls sh

ort o

f the

envi

sage

d U

S Ce

nts 9

.5 p

er

litre

whi

ch w

as ag

reed

in 1

996,

how

ever

, the

fact

re-

main

s tha

t GoG

has

incr

ease

d its

fuel

levy p

er li

tre fr

om

150

Cedi

s in

2000

to 6

00 C

edis

in 2

005,

repr

esen

ting

a 40

0% in

crea

se in

a 5-

year

per

iod

in C

edi t

erm

s. Th

e pre

-se

nt p

olicy

is to

hav

e fue

l lev

ies at

US

Cent

s 9.5

per

litre

in

200

8.

• Fu

el lev

ies in

Ced

is ha

ve st

rong

ly in

crea

sed

in re

lativ

e te

rms (

fact

or 1

0 in

10

year

s). T

he fu

el lev

y dev

elopm

ent

in U

S$ sh

ows a

noth

er p

ictur

e. Fu

el lev

ies in

200

5 ar

e a

huge

incr

ease

com

pare

d to

200

2, h

owev

er, a

re al

mos

t at

the s

ame l

evel

of th

e 199

8 ra

te.

• O

ther

sour

ces o

f rev

enue

s, i.e

. brid

ge an

d ro

ad to

lls, v

e-hi

cle re

gistr

atio

n, ro

ad u

se, a

nd in

tern

atio

nal t

rans

it fe

es

do co

ntin

ue to

gro

w in

abso

lute

term

s. Th

e non

-fuel

levy r

even

ues a

ccou

nt to

less

than

10%

of t

otal

GRF

re

venu

es.

• Re

lease

s to

the

GRF

hav

e bee

n on

tim

e; sh

iftin

g th

e fu

nds t

o a c

omm

ercia

l ban

k is

no lo

nger

deb

ated

. •

The b

ases

of G

RF al

loca

tion

to th

e roa

d ag

encie

s hav

e no

t bee

n co

mpl

etely

cons

isten

t and

tran

spar

ent.

Allo

ca-

tion

prio

rities

(main

tena

nce f

irst)

are n

ot fu

lly re

spec

ted.

•

The C

ivil

Serv

ice D

epar

tmen

t sta

tus u

nder

whi

ch G

RF

Secr

etar

iat o

pera

tes,

restr

icts t

he G

RF in

its f

lexib

ility

an

d ab

ility

to e

mpl

oy co

mm

ercia

l prin

ciples

in h

andl

ing

day-

to-d

ay o

pera

tions

. Bes

ides

, the

fact

that

salar

ies ar

e no

w b

ased

on

the G

hana

Uni

vers

al Sa

lary S

truct

ure,

whe

reas

salar

ies o

f the

dire

ctor

and

two

seni

or st

aff w

ere

part

of d

onor

pro

gram

mes

unt

il M

ay 2

002,

mea

ns a

cons

ider

able

salar

y red

uctio

n.

Me-

dium

-

Me-

dium

-

ANN

EX 7

–SU

MM

AR

Y O

F AC

TIO

NS

TAKE

N M

ATR

IX

11. F

acili

tate

fur-

ther

priv

ate

sec-

tor p

artic

ipat

ion

• Th

e sha

re o

f priv

ate s

ecto

r par

ticip

atio

n (P

SP) r

emain

s hi

gh, a

s was

the

case

in th

e HSI

P ev

aluat

ion.

PSP

leve

ls ar

e ov

er 9

0 pe

rcen

t. •

Capa

city o

f priv

ate s

ecto

r, es

pecia

lly co

ntra

ctor

s, is

re-

gard

ed p

oor.

Train

ing

prog

ram

mes

are d

evelo

ped

to im

-pr

ove t

his s

ituat

ion.

•

GoG

tries

to b

ring

priv

ate s

ecto

r fin

ancin

g to

the r

oad

sub-

sect

or. S

teps

take

n ar

e (i)

a Bui

ld-O

pera

te-T

rans

fer

(BO

T) p

rojec

t is u

nder

revi

ew o

n th

e Acc

ra-K

umas

i roa

d an

d (ii

) a O

T po

licy f

ram

ewor

k is

now

und

er d

iscus

sion.

Med

ium

•

PSP

in m

ainte

nanc

e rem

ains h

igh

(> 9

0%).

•

The p

erfo

rman

ce o

f the

loca

l con

struc

tion

indu

stry c

on-

tinue

s to

be p

robl

emat

ic.

• A

SRO

C is

assis

ted

to p

ositi

vely

influ

ence

the c

onstr

uc-

tion

indu

stry.

•

The G

OG

cont

inue

s to

purs

ue th

e mer

its o

f brin

ging

in

priv

ate s

ecto

r mon

ey to

the r

oad

sub-

sect

or, f

ocus

ing

on

optio

nal i

ntro

duct

ion

of B

uild

-Ope

rate

-Tra

nsfe

r (BO

T),

Reco

nstru

ct-O

pera

te-T

rans

fer (

ROT)

and

Main

tain

-O

pera

te-T

rans

fer (

MO

T) sc

hem

es.

• U

pgra

ding

the

Acc

ra-K

umas

i roa

d in

to a

dual

carri

age-

way

at th

e tw

o en

ds, w

ith b

ypas

ses c

onstr

ucte

d ne

ar m

a-jo

r tow

ns o

n th

e rou

te, r

emain

s the

targ

eted

priv

ate s

ec-

tor f

inan

cing

show

case

.

Med

ium

M

ediu

m

12. F

ocus

of F

TA

on tr

ansf

er o

f kn

owle

dge

and

prov

idin

g ad

ded

valu

e

• O

vera

ll, th

ere i

s a te

nden

cy to

war

ds a

decr

ease

in th

e lev

el of

FTA

in th

e per

iod

2000

-’02.

•

FTA

is p

rovi

ding

adde

d va

lue;

it is

main

ly us

ed in

‘new

’ fie

lds,

such

as sa

fety

, env

ironm

ent a

nd d

ecen

tralis

atio

n.

Whe

n kn

owled

ge is

tran

sfer

red,

the l

evel

of F

TA is

de-

crea

sed.

•

In th

e ‘ne

w’ a

reas

, spe

cific

train

ing

has t

aken

plac

e, e.g

. an

over

seas

train

ing

prog

ram

me f

or ro

ad sa

fety

.

Med

ium

-hi

gh

• FT

A co

ntin

ues a

t app

roxi

mat

ely th

e sam

e rat

e as i

n th

e pe

riod

2000

-02.

FTA

at G

HA

has

dec

reas

ed (i

n th

e fie

lds o

f saf

ety a

nd m

ainte

nanc

e), w

hile

FTA

has

in-

crea

sed

at D

FR (D

FID

Man

agem

ent S

uppo

rt Te

am).

Me-

dium

-hi

gh

Me-

dium

-hi

gh

ANN

EX 7

–SU

MM

AR

Y O

F AC

TIO

NS

TAKE

N M

ATR

IX

13. I

ncre

ase

prio

r-ity

on

envi

ron-

men

t and

safe

ty

• Th

e Nat

iona

l Roa

d Sa

fety

com

miss

ion

(NRS

C) w

as es

tab-

lishe

d by

Par

liam

ent i

n 19

99 an

d ha

s bec

ome o

pera

tiona

l in

the p

erio

d 20

01-0

2 co

-ord

inat

ing

all ro

ad sa

fety

activ

i-tie

s.

• A

road

safe

ty an

d en

viro

nmen

t div

ision

has

bee

n se

t up

at

GH

A to

focu

s on

all sa

fety

and

envi

ronm

ent i

ssue

s aris

ing

from

pre

-con

struc

tion

to o

pera

tiona

l sta

ges.

•

Proc

urem

ent o

f the

serv

ice fo

r acc

iden

t dat

a col

lectio

n is

ongo

ing;

loca

l exp

erts

are t

rain

ed in

a br

oad

rang

e of r

oad

safe

ty as

pect

s; ph

ysica

l mea

sure

s to

stim

ulat

e roa

d sa

fety

ha

ve b

een

take

n.

• En

viro

nmen

tal i

mpa

ct as

sess

men

t (EI

A) i

s don

e for

all

new

pro

jects;

dus

t con

trol m

easu

res h

ave b

een

take

n by

co

ntra

ctor

s (ea

rth sp

eed

ram

ps),

with

adde

d ad

vant

age o

f co

ntrib

utin

g to

road

safe

ty.

Med

ium

-hi

gh

• A

ccor

ding

to a

revi

ew o

f Env

ironm

enta

l, So

cial,

Hea

lth

and

Safe

ty (E

SHS)

issu

es in

the r

oad

sub-

sect

or ‘E

SHS

issue

s hav

e ten

ded

to b

e im

plem

ente

d (a

nd fu

nded

) as a

re

sult

of d

onor

con

ditio

nalit

y with

out g

ener

atin

g bu

y-in

fro

m th

e rele

vant

Gha

naian

insti

tutio

ns. C

onve

rsely

G

oG ro

ads p

rojec

ts te

nd n

ot to

syste

mat

ically

bud

get

for E

SHS

costs

’.

• N

RSC

has d

evelo

ped

a Nat

iona

l Tra

nspo

rt St

rate

gy an

d N

atio

nal R

oad

Safe

ty A

ctio

n Pl

ans f

or 2

002-

03 an

d 20

04-0

5. N

RSC

is pr

epar

ing

for t

he 2

006-

10 R

oad

Safe

ty S

trate

gy.

• EI

A co

ntin

ues t

o be

com

mon

pra

ctice

for n

ew p

rojec

ts.

Med

ium

M

ediu

m

14. I

mpr

ove

dis-

burs

emen

t pro

-ce

dure

s to

con-

tract

ors a

nd

dono

r rele

ases

• Th

e arre

ars h

ave n

ot b

een

settl

ed, h

owev

er, a

larg

e am

ount

of

arre

ars h

ave

been

paid

off

in 2

002.

•

Proc

urem

ent p

roce

ss is

slow

, res

ultin

g in

dat

e of t

ende

r lag

ging

mon

ths b

ehin

d th

e (sc

hedu

led) c

omm

ence

men

t da

te fo

r the

wor

ks.

• D

urat

ion

of p

aym

ent t

o co

ntra

ctor

s thr

ough

GRF

has

sh

orte

ned

over

the l

ast t

wo

year

s, bu

t the

re is

still

room

for

impr

ovem

ent.

•

Don

or re

lease

s hav

e not

follo

wed

pro

gram

med

leve

ls.

• G

oG an

d do

nors

mak

e no

quar

terly

revi

ews o

n im

plem

en-

tatio

n sta

tus o

n a s

truct

ural

basis

. No

syste

m to

mon

itor

expe

nditu

re m

anag

emen

t and

cont

rol i

s in

plac

e, alt

houg

h M

RT h

as d

ecid

ed to

pro

cure

an ac

coun

ting

and

man

age-

men

t inf

orm

atio

n sy

stem

. •

Atte

mpt

s hav

e be

en m

ade b

y age

ncies

to in

stall

cont

ract

m

anag

emen

t sys

tem

s, w

hich

hav

e not

bee

n fu

lly o

pera

-tio

nal.

Low

•

With

tigh

tene

d co

ntro

l on

over

spen

ding

, esp

ecial

ly on

de

velo

pmen

t pro

jects

(co)

fund

ed th

ough

the c

onso

li-da

ted

budg

et, a

nd w

ith th

e new

Pro

cure

men

t Act

in

plac

e, th

e arre

ars p

robl

em h

as b

een

prac

ticall

y sol

ved.

So

me s

mall

er ar

rear

s cou

ld b

e bui

ldin

g up

in m

ainte

-na

nce a

nd/o

r min

or re

habi

litat

ion

wor

ks.

• Fi

nanc

ial, t

echn

ical a

nd p

rocu

rem

ent a

udits

are c

arrie

d ou

t on

an an

nual

basis

in o

rder

to p

rovi

de tr

ansp

aren

cy

and

acco

unta

bilit

y in

the u

se o

f the

com

bine

d fu

nds i

n th

e roa

d se

ctor

. •

MRT

mak

es q

uarte

rly p

rogr

ess r

epor

ts, p

rovi

ding

an ex

-te

nsiv

e ove

rview

of p

rogr

ess o

f the

impl

emen

tatio

n of

RS

DP

per a

genc

y. M

RT is

one

of t

he th

ree p

ilot m

inis-

tries

to in

corp

orat

e BPE

MS;

the s

yste

m is

not

ope

ra-

tiona

l yet

. •

Don

or re

lease

s are

still

beh

ind

on p

rogr

amm

ed le

vels.

Me-

dium

-hi

gh

Med

ium

ANN

EX 7

–SU

MM

AR

Y O

F AC

TIO

NS

TAKE

N M

ATR

IX

15. P

ut p

riorit

y on

ax

le lo

ad c

on-

trol

• Tw

o m

ore p

erm

anen

t weig

hbrid

ges a

re o

pera

tiona

l (be

-sid

es th

e tw

o ex

istin

g on

es in

Ofa

nkor

and

Asu

oyeb

oah)

. Fu

rther

mor

e, se

ven

weig

hbrid

ges h

ave b

een

insta

lled,

but

sti

ll ne

ed am

ong

othe

r thi

ngs e

lectri

c pow

er, w

ater

, sec

urity

lig

htin

g, fe

ncin

g of

stat

ion

and

furn

iture

. •

A p

orta

ble w

eighb

ridge

is in

stalle

d ne

ar T

ema h

arbo

ur to

‘ta

ckle’

ove

rload

ed tr

ansit

truc

ks. T

en p

orta

ble

weig

hbrid

ges a

re p

rocu

red

unde

r ID

A fi

nanc

ing

to b

e dis-

tribu

ted

to th

e reg

ions

. •

It sh

ould

be n

oted

that

the a

xle l

oad

prog

ram

me i

s aim

ed

at in

stalli

ng 2

7 pe

rman

ent a

nd 2

1 po

rtabl

e w

eighb

ridge

s. •

Ope

ratio

ns o

f ope

ratio

nal w

eighb

ridge

s rem

ain p

robl

em-

atic,

with

lim

ited

open

ing

hour

s, no

t a sy

stem

atic

way

of

weig

hing

truc

ks an

d av

ailab

ility

of a

ltern

ativ

e rou

tes.

• G

HA

inte

nds t

o pr

ivat

ise th

e m

anag

emen

t of t

he p

erm

a-ne

nt w

eighb

ridge

s. Th

e tra

inin

g an

d pr

ivat

isatio

n is

aimed

at

impr

ovin

g op

erat

iona

l per

form

ance

of t

he w

eighb

ridge

s.

Low

•

Slow

pro

gres

s in

impl

emen

ting

the a

xle l

oad

prog

ram

me

has l

ed a

grou

p of

don

ors t

o str

ongl

y app

eal f

or a

struc

-tu

red

appr

oach

tow

ards

the p

repa

ratio

n of

a po

licy

docu

men

t and

actio

n pl

an o

n ax

le lo

ad co

ntro

l. Pr

epar

a-tio

n fo

r the

dev

elopm

ent o

f suc

h a p

olicy

doc

umen

t and

ac

tion

plan

star

ted

in 2

003.

•

In 2

004

an A

xle

Load

Wor

king

Gro

up w

as es

tabl

ished

to

revi

ew an

d re

vise

the p

olicy

and

actio

n pl

an.

In D

e-ce

mbe

r 200

4 a r

epor

t was

pub

lishe

d en

titled

‘Rev

iew o

f A

xle L

oad

Cont

rol P

olicy

& A

ssist

ance

in th

e Im

ple-

men

tatio

n of

the A

ctio

n Pl

an’.

In F

ebru

ary/

Mar

ch 2

005

a Stu

dy T

our w

as o

rgan

ised

to le

arn

from

expe

rienc

es in

So

uth

Afri

ca, M

alaw

i, Ta

nzan

ia, G

erm

any a

nd B

ritain

. •

Find

ings

from

the S

tudy

Tou

r and

com

men

ts on

the

prev

ious

repo

rt, re

sulte

d in

a ne

w re

port,

as p

rese

nted

in

the R

SDP

Mid

-Ter

m R

eview

, inc

ludi

ng th

e (i)

Axl

e Lo

ad C

ontro

l Pol

icy; (

ii) th

e Act

ion

Plan

; (iii

) Cos

t-Be

nefit

Ana

lysis;

(iv)

Leg

al Co

mm

ents,

as w

ell as

Ter

ms

of R

efer

ence

for T

echn

ical A

ssist

ance

in h

elpin

g th

e A

xle L

oad

Wor

king

Gro

up to

impl

emen

t the

pol

icy an

d ac

tion

plan

; a W

eigh

Stat

ion

Loca

tion

Plan

and

Dra

ft Re

gulat

ions

. •

In 2

004

six w

eighb

ridge

stat

ions

wer

e ope

ratio

nal:

Yape

i, Bo

lgat

anga

, Ofa

nkor

, Auo

yboa

h, T

ema,

and

Afie

nya.

Thre

e out

of s

ix o

f the

weig

hbrid

ges o

pera

te

24-h

ours

/day

. One

addi

tiona

l weig

hbrid

ge st

atio

n in

Bo

goso

may

hav

e bec

ome o

pera

tiona

l ear

ly 20

05.

• A

ccor

ding

to th

e 4th

Qua

rter R

epor

t, pr

epar

ed b

y MRT

, bi

ddin

g do

cum

ents

for t

he p

rocu

rem

ent o

f 10

Porta

ble

Weig

h pa

ds h

ave

been

pre

pare

d an

d su

bmitt

ed to

the

Wor

ld B

ank.

The

tend

erin

g is

cont

inge

nt o

n th

e com

-pl

etio

n of

the A

xle L

oad

Stud

y com

miss

ione

d by

the

dono

rs.

Low

-m

ediu

m

Low

ANN

EX 7

–SU

MM

AR

Y O

F AC

TIO

NS

TAKE

N M

ATR

IX

16. F

urth

er im

-pr

ove

dono

r co

-ord

inat

ion

• Th

e con

cept

of p

rogr

amm

e app

roac

h ha

s bee

n ad

opte

d to

pl

ace a

ll do

nor i

nter

vent

ions

und

er th

e um

brell

a of R

SDP.

H

igh

• D

onor

s and

GoG

repr

esen

tativ

es co

ntin

ue to

co-

ordi

nate

their

activ

ities

thro

ugh

mon

thly,

qua

rterly

and

annu

al m

eetin

gs, s

uppo

rted

thro

ugh

the d

edica

ted

do-

nor c

o-or

dina

tion

unit

at M

RT. A

lthou

gh p

erso

ns, r

ep-

rese

ntin

g th

e don

ors’

orga

nisa

tions

com

e and

go,

the

spiri

t of c

o-op

erat

ion

rem

ains.

RSD

P ha

s pro

vide

d a

plat

form

in w

hich

each

don

or ca

n pl

ay it

s res

pect

ive

part.

Med

ium

M

e-di

um-

high

ANN

EX 8

–SU

MM

AR

Y O

F EF

FEC

TS M

ATR

IX

ANN

EX

8 -

SUM

MAR

Y O

F E

FFE

CTS

MAT

RIX

R

ecom

men

datio

n E

nvis

aged

effe

cts (

2000

) Ac

hiev

ed e

ffect

s (20

00-‘0

5)

Leve

l of

real

isat

ion

1. M

onito

ring

and

eval

uatio

n of

R

SDP

The c

omple

tion

of th

e eva

luatio

n of

RSE

P pr

ovide

s an

excel

lent o

ppor

tuni

ty to

prep

are f

or th

e mon

itorin

g and

evalu

a-tio

n of

the p

rogre

ss an

d pe

rform

ance

of th

e ne

w roa

d prog

ramm

e, RS

DP.

To f

acili

-ta

te th

is pr

ocess,

RSD

P ob

jectiv

es sh

ould

be se

t as c

lear a

s poss

ible,

where

poss

ible

with

clea

r, me

asur

able

and a

chiev

able

targe

ts. B

y doin

g so a

set o

f perf

orma

nce

indic

ator

s can

be d

evelop

ed al

lowin

g for

mo

nitor

ing a

nd ev

aluat

ion of

the p

ro-gra

mme.

The p

erfor

manc

e ind

icator

s can

be

used

in ba

selin

e stu

dies s

ervin

g as

refere

nce p

oints

for fu

ture

perfo

rman

ce

Mon

itorin

g an

d ev

aluat

ion

of R

SDP

allow

s po

licy

mak

ers t

o st

eer a

nd a

djus

t the

pro

-gr

amm

e w

here

nee

ded

and

to p

rovi

de re

levan

t le

sson

s lea

rned

that

can

feed

into

tran

spor

t po

licy

deve

lopm

ent i

n ge

nera

l and

spec

ifica

lly

into

the

deve

lopm

ent o

f the

new

, fol

low

-up

prog

ram

me.

Perf

orm

ance

indi

cato

rs, e

spe-

cially

whe

n lin

ked

to so

cio-e

cono

mic

and

pol-

icy re

lated

obj

ectiv

es, w

ill h

elp

to c

reat

e su

p-po

rt fo

r the

cur

rent

and

follo

w-u

p pr

o-gr

amm

e.

• Th

e jo

int a

ppro

ach

in e

valu

atin

g th

e RS

EP

(pre

viou

s pro

gram

me)

and

pr

epar

ing

the

RSD

P, i.

e. th

roug

h a

join

t pro

gram

me

in w

hich

bot

h G

oG a

nd d

evelo

pmen

t par

tner

s par

ticip

ated

, pre

vent

ed d

uplic

atio

n of

act

ions

and

ens

ured

tran

spar

ency

. •

The

16 re

com

men

datio

ns fr

om th

e Jo

int E

valu

atio

n co

nver

ge to

a

very

larg

e ex

tent

with

the

RSD

P po

licies

and

obj

ectiv

es a

s def

ined

in

Mar

ch 2

001,

indi

catin

g a

linka

ge b

etw

een

the

Join

t Eva

luat

ion

resu

lts

and

the

cont

ents

of R

SDP.

•

The

road

sub-

sect

or h

as n

ot b

een

able

to d

evel

op a

soun

d m

onito

ring

and

evalu

atio

n sy

stem

. The

per

form

ance

indi

cato

rs a

s def

ined

in

RSD

P ha

ve n

ot b

een

used

to st

ruct

urall

y m

onito

r RSD

P pe

rfor

m-

ance

. The

road

sub-

sect

or h

as n

ot b

een

able

to in

dica

te th

e co

ntrib

u-tio

n of

the

sect

or to

nat

iona

l dev

elopm

ent o

bjec

tives

. •

If th

e ro

ad su

b-se

ctor

thro

ugh

its R

SDP

and

futu

re (r

oad)

tran

spor

t pr

ogra

mm

es (c

ontin

ue to

) fail

to c

learly

indi

cate

its c

ontri

butio

n to

na

tiona

l dev

elop

men

t obj

ectiv

es, s

uch

as p

over

ty a

llevi

atio

n, th

roug

h a

well

-func

tioni

ng m

onito

ring

and

evalu

atio

n sy

stem

, the

road

sub-

sect

or m

ay ri

sk a

majo

r fun

ding

redu

ctio

n be

caus

e of

the

intro

duct

ion

of th

e M

DBS

syst

em.

Low

-med

ium

2.

Dev

elop

a s

elf-m

onito

ring

syst

em

As m

onito

ring a

nd ev

aluat

ion a

re con

sid-

ered

to be

come i

ncrea

singly

impo

rtant

in

time,

the G

oG co

uld, i

n co-

ordin

ation

wi

th th

e don

ors,

consid

er in

itiat

ing t

he

devel

opme

nt of

a sel

f-mon

itorin

g syst

em.

This

would

facil

itate

the p

olicy-

maki

ng

proce

dure

and w

ould

prep

are t

he G

oG fo

r fut

ure e

valua

tions

.

The

effe

cts a

re c

lose

ly re

lated

to th

e ef

fect

s fr

om R

ecom

men

datio

n 1,

i.e.

the

abili

ty to

st

eer t

he p

rogr

amm

e w

here

nee

ded

and

gene

r-at

e les

sons

lear

ned

as in

put f

or p

olicy

dev

el-

opm

ent.

Em

phas

is in

this

reco

mm

enda

tion

is on

self-

mon

itorin

g, w

hich

wou

ld p

lace

GoG

in

the

driv

er se

at o

f the

mon

itorin

g pr

oces

s an

d cr

eate

furth

er o

wne

rshi

p of

the

polic

y de

velo

pmen

t pro

cess

.

• Se

lf-m

onito

ring

will

help

GoG

in it

s pol

icy fo

rmul

atio

n pr

oces

s. Th

e lim

ited

prog

ress

mad

e in

self-

mon

itorin

g pr

even

ts th

e G

oG to

car

ry

out a

syst

emat

ic m

onito

ring

and

evalu

atio

n pr

oces

s with

con

tinuo

us

feed

back

in p

olicy

form

ulat

ion,

mak

ing

polic

y fo

rmul

atio

n to

a la

rge

exte

nt a

n ad

-hoc

affa

ir.

• A

n in

appr

opria

tely

func

tioni

ng se

lf-m

onito

ring

syst

em p

reve

nts a

so

und

deba

te o

n co

ntrib

utio

n of

the

road

sub-

sect

or to

nat

iona

l de-

velo

pmen

t obj

ectiv

es, e

.g. p

over

ty a

llevi

atio

n. G

iven

the

natu

re o

f M

DBS

this

may

resu

lt in

the

road

sub-

sect

or lo

sing

supp

ort.

Low

-med

ium

ANN

EX 8

–SU

MM

AR

Y O

F EF

FEC

TS M

ATR

IX

3.

Purs

ue re

orga

nisa

tion

of th

e ro

ad su

b-se

ctor

Th

e GoG

shou

ld pr

oceed

with

the r

eor-

gani

satio

n of

the r

oad

sub-

sector

insti

tu-

tions

. The

agen

cies s

hould

be fu

rther

brou

ght d

own

in si

ze an

d focu

s on

core

activ

ities.

A re

trenc

hmen

t pro

gramm

e for

sta

ff pr

eviou

sly in

volve

d in

force

acco

unt

need

s to b

e put

in pl

ace t

o allo

w or

gani

sa-

tions

to do

wnsiz

e. A

lthou

gh it

is re

alised

th

at ra

ising

salar

ies is

not

direct

ly wi

thin

th

e scop

e of M

RT, b

ut is

depe

nden

t on

gover

nmen

tal g

uide

lines,

effor

ts sh

ould

be

made

to b

ring s

alarie

s mor

e in

line w

ith

salar

ies pa

id in

the p

rivat

e sect

or, i

n or

der

to av

oid ou

tflow

of q

ualif

ied st

aff.

Thro

ugh

the

rest

ruct

urin

g of

the

agen

cies

it

was

env

isage

d to

incr

ease

the

tech

nica

l cap

ac-

ity o

f the

age

ncies

whi

ch w

ould

allo

w th

e ag

encie

s to

bette

r res

pond

to th

e ch

allen

ges

the

agen

cies a

re fa

cing

. The

retre

nchm

ent

prog

ram

me

wou

ld c

reat

e fin

anci

al m

eans

that

co

uld

be u

sed

mor

e ef

fect

ively

. The

env

isage

d sa

lary

adju

stm

ents

wou

ld h

elp

reta

in a

nd h

ire

quali

fied

staf

f.

• Th

e in

abili

ty to

laun

ch th

e re

trenc

hmen

t pro

gram

me

has l

eft t

he

agen

cies

, not

ably

GH

A, w

ith re

dund

ant s

taff

and

cons

eque

ntly

a sa

l-ar

y bu

rden

. At t

he sa

me

time,

not l

aunc

hing

the

retre

nchm

ent p

ro-

gram

me

has p

reve

nted

larg

e nu

mbe

r of s

taff

to b

ecom

e un

empl

oyed

. Cu

rren

tly, s

taff

redu

ctio

ns a

re b

ased

on

natu

ral r

etire

men

t, re

signa

-tio

n, si

ckne

ss a

nd d

eath

. •

As f

or th

e w

iden

ing

salar

y ga

p, o

ne sh

ould

be

awar

e th

at th

e pu

blic

sect

or p

rovi

des a

dditi

onal

bene

fits,

such

as h

ousin

g, tr

ansp

orta

tion

and

(fore

ign)

edu

catio

n, w

hich

may

com

pens

ate

for t

he sa

lary

gap.

It

is ne

verth

eles

s exp

ecte

d th

at th

e sa

lary

gap

betw

een

publ

ic an

d pr

i-va

te se

ctor

will

con

tinue

to p

ull t

alent

ed c

ivil

serv

ants

to th

e pr

ivat

e se

ctor

.

Low

-med

ium

4.

Dev

elop

a b

alan

ced

train

ing

prog

ram

me

The n

eed fo

r tra

ining

rema

ins h

igh. D

o-me

stic t

rain

ing p

rogra

mmes

shou

ld be

im

prov

ed a

nd gi

ven p

riorit

y over

overs

eas

train

ing.

Train

ing

prog

ram

mes

con

tribu

te to

cap

acity

de

velo

pmen

t in

the

road

sect

or, r

espo

ndin

g to

th

e ne

eds o

f the

tran

spor

t sec

tor i

n G

hana

. G

ivin

g pr

iorit

y to

dom

estic

train

ing

pro-

gram

mes

shou

ld in

crea

se th

e sc

ope

and

size,

and

cons

eque

ntly

the

impa

ct, o

f the

train

ing

prog

ram

mes

, as d

omes

tic p

rogr

amm

es a

re fa

r les

s exp

ensiv

e th

an th

e ov

erse

as tr

ainin

g.

• Th

ere

is a

clea

r ten

denc

y to

con

tinue

with

ove

rsea

s tra

inin

g, b

ased

on

a cle

ar d

eman

d (n

eed

for t

rain

ing,

inst

rum

ent t

o re

tain

staf

f) an

d su

p-pl

y (d

onor

s con

tinue

to fu

nd tr

ainin

g pr

ogra

mm

es, c

ontri

butin

g to

tra

nsfe

r of k

now

ledge

pol

icies

as s

tate

d in

the

dono

rs’ p

olici

es).

The

avail

abili

ty o

f a c

onst

ant a

nd c

onsid

erab

le su

pply

of o

vers

eas t

rain

ing

may

div

ert t

he a

ttent

ion

away

from

the

need

of s

ettin

g up

a st

rong

in-

coun

try tr

ainin

g pr

ogra

mm

e.

• Th

e re

com

men

datio

n to

redu

ce o

vers

eas t

rain

ing

did

not t

ake

into

co

nsid

erat

ion

one

impo

rtant

fact

or. T

he o

vers

eas t

rain

ing

pro-

gram

mes

hel

p to

reta

in st

aff.

GH

A, D

FR a

nd D

UR

indi

cate

hig

h re

-te

ntio

n ra

tes o

f ove

rsea

s tra

ined

staf

f. Th

e lat

ter i

s also

bas

ed o

n bo

nds t

hat n

eed

to b

e sig

ned

by tr

ained

staf

f, re

stra

inin

g th

em fo

r a

certa

in p

erio

d of

tim

e, e.g

. thr

ee y

ears

, for

edu

catio

n ab

road

. •

The

shar

e of

train

ing

fund

ed b

y do

nors

is su

ch, t

hat t

he su

stain

abili

ty

of th

e tra

inin

g pr

ogra

mm

es c

ould

be

ques

tione

d.

Med

ium

ANN

EX 8

–SU

MM

AR

Y O

F EF

FEC

TS M

ATR

IX

5.

Follo

w c

autio

us a

ppro

ach

tow

ards

dec

entra

lisat

ion

The c

autio

us ap

proa

ch fo

llowe

d in

the

decen

tralis

ation

proce

ss wi

thin

the ro

ad

sub-s

ector

is con

sidere

d goo

d pra

ctice.

A

sector

-wide

deba

te on

the o

ptima

l leve

l of

decen

tralis

ation

is re

comme

nded

, keep

ing in

mi

nd po

tentia

l dise

conom

ies of

scale

To fi

nd a

n op

timal

level

of d

ecen

tralis

atio

n,

i.e. t

o ba

lance

on

the

one

hand

effe

cts i

n im

-pr

oved

loca

l con

tribu

tion

to tr

ansp

ort p

olicy

m

akin

g an

d m

akin

g tra

nspo

rt po

licy

mor

e re

spon

sive

to lo

cal n

eeds

and

on

the

othe

r ha

nd k

eepi

ng a

co-

ordi

nate

d ap

proa

ch in

ap-

prop

riate

are

as a

nd n

ot c

reat

ing

dise

cono

mies

of

scale

.

• D

istric

ts a

nd M

unici

palit

ies a

re n

ow in

volv

ed in

the

plan

ning

, sele

c-tio

n, p

riorit

isatio

n an

d pr

epar

atio

n of

main

tena

nce

wor

ks, i

llust

ratin

g th

e sh

ifted

resp

onsib

ility

thro

ugh

dece

ntra

lisat

ion.

•

In th

e de

cent

ralis

ed p

riorit

isatio

n pr

oces

s of r

oad

wor

ks in

the

dis-

trict

s, a

bias

is n

otice

d to

war

ds re

habi

litat

ion

wor

ks o

ver m

ainte

nanc

e w

orks

. •

Dist

ricts

are

pos

itive

abo

ut th

e cr

eatio

n of

DW

Ds a

nd e

xpec

t tha

t it

will

con

tribu

te to

a m

ore

effic

ient m

anag

emen

t of p

ublic

infr

astru

c-tu

re. A

t the

sam

e tim

e, th

e bo

ttom

-up

cons

ulta

tion

and

prio

ritisa

tion

proc

ess o

f roa

d w

orks

is o

wne

d by

the

DA

s, co

ntrib

utin

g to

a se

nse

of re

spon

sibili

ty fo

r clo

ser s

uper

visio

n of

wor

ks.

• A

s a re

sult

of th

e re

lativ

ely

caut

ious

app

roac

h in

dec

entra

lisat

ion,

the

bodi

es in

volv

ed, i

.e. th

e M

LGRD

, DA

s, M

unici

palit

ies, D

UR

and

DFR

hav

e th

e ca

paci

ty to

abs

orb

the

proc

ess.

Med

ium

-hig

h

6.

Dev

elop

real

istic

am

bitio

n le

vel o

f RSD

P-pl

ace

prio

rity

on m

aint

enan

ce

The r

oad s

ub-se

ctor p

rogra

mme u

nder

RSE

P (th

e roa

d prog

ramm

e for

1996

-20

00) i

s con

sidere

d quit

e amb

itiou

s and

ha

s only

been

partl

y rea

lised

. In

devel

oping

a n

ew pr

ogram

me it

is re

comme

nded

taki

ng

into a

ccoun

t (1)

the d

evelop

ing n

eeds o

f the

roa

d sub

-secto

r, (2

) the

fund

ing ca

pacit

y of

GoG

and d

onors

and (

3) th

e abs

orptio

n ca

pacit

y of M

RT, t

he ag

encie

s and

othe

r org

anisa

tions

invo

lved i

n the

secto

r. Th

e po

licy o

f givi

ng pr

iority

to m

ainten

ance

shou

ld be

resp

ected

To d

esig

n a

prog

ram

me

that

opt

imall

y re

-sp

onds

to th

e ne

eds o

f the

sect

or a

nd st

ruc-

tura

lly im

prov

es th

e ro

ad n

etw

ork

cond

ition

s an

d is

in li

ne w

ith a

bsor

ptio

n ca

pacit

y of

the

sect

or a

nd fu

nds a

vaila

ble.

This

impl

ies

achi

evab

le ta

rget

s and

a p

rogr

amm

e ab

le to

de

liver

the

targ

ets,

base

d on

bes

t pos

sible

allo-

catio

n of

fund

s.

Prio

ritisi

ng m

ainte

nanc

e ov

er d

evel

opm

ent

wor

ks re

sults

in p

rese

rvat

ion

of e

xist

ing

asse

ts

and

high

er re

turn

s on

inve

stm

ent.

• Th

e co

nditi

on m

ix ta

rget

(70:

20:1

0) w

as sh

ifted

forw

ard

to 2

008.

The

RS

DP

cond

ition

mix

targ

et is

set a

t 59:

27:1

4 fo

r the

end

of t

he p

ro-

gram

me

(200

6).

• La

ck o

f main

tena

nce

resu

lts in

acc

elera

ted

dete

riora

tion

of th

e ro

ad

netw

ork

and

the

need

to re

habi

litat

e th

e ro

ad n

etw

ork,

whi

ch c

omes

at

con

sider

ably

hig

her c

osts

(com

pare

d to

main

tena

nce

cost

s).

• Th

e ex

pand

ed n

etw

ork

leads

to h

ighe

r main

tena

nce

need

s, re

sulti

ng

in th

e ne

ed fo

r a h

ighe

r main

tena

nce

budg

et. I

f the

cur

rent

main

te-

nanc

e bu

dget

is in

suff

icien

t to

cove

r the

main

tena

nce

need

s, th

e po

l-icy

to e

xpan

d th

e len

gth

of th

e m

ainta

inab

le ro

ad n

etw

ork

is qu

es-

tiona

ble.

Low

-med

ium

ANN

EX 8

–SU

MM

AR

Y O

F EF

FEC

TS M

ATR

IX

7.

Dev

elop

com

mon

app

roac

h fo

r fea

sibi

lity

stud

ies

As i

nvest

ment

s in

the r

oad

sub-

sector

are

based

on d

iffere

nt cr

iteria

, MRT

could

pla

y a fa

cilita

ting r

ole in

devel

opin

g a

commo

n ap

proa

ch, e

.g. th

roug

h de

fining

a

frame

work

of st

anda

rds,

inclu

ding (

1)

unit

cost o

f con

struc

tion/

rehab

ilitat

ion,

(2) v

ehicl

e ope

ratin

g cost

s, (3

) valu

e of

time,

(4) o

ppor

tuni

ty cos

t of c

apita

l and

(5

) env

ironm

enta

l, sa

fety a

nd a

dditi

onal

socio-

econo

mic i

mpac

t.

To c

reat

e a

com

mon

and

gen

erall

y ac

cept

ed

appr

oach

tow

ards

pro

ject a

ppra

isal,

thro

ugh

whi

ch a

ll pr

ojec

ts a

re w

eighe

d ag

ainst

the

sam

e, ac

cept

ed c

riter

ia. B

y do

ing

so, a

bias

to

war

ds c

erta

in p

rojec

ts is

pre

vent

ed.

• N

ot st

anda

rdisi

ng th

e ap

proa

ch to

war

ds p

riorit

isatio

n of

road

wor

ks

and

leavi

ng th

is pr

oces

s up

to in

divi

dual

parti

es, s

uch

as ro

ad a

genc

ies

or d

onor

s, re

sults

in a

bias

tow

ards

cer

tain

pro

jects

and

sub-

optim

al ro

ad p

rogr

amm

es fr

om a

nat

iona

l per

spec

tive.

•

The

use

of H

DM

-4 a

s the

com

mon

tool

for f

easib

ility

stud

ies h

as

cont

ribut

ed to

war

ds th

e ha

rmon

isatio

n. H

owev

er, u

se o

f HD

M-4

, e.g

. th

roug

h in

put d

ata,

is no

t yet

har

mon

ised.

Med

ium

8.

Prio

ritis

e ro

ad p

roje

cts b

ased

on

soun

d pr

inci

ples

Ba

lancin

g equ

itable

regio

nal d

istrib

ution

, in

cludin

g inv

estme

nts i

n low

-volum

e tra

ffic

road

s and

inves

tmen

ts ba

sed on

‘sou

nd

econo

mic p

rincip

les’ n

eeds t

o be f

urth

er foc

used

on. B

oth is

sues

could

possi

bly b

e com

bined

thro

ugh

a mu

lti-cr

iteria

ap-

proa

ch.

To a

rriv

e at

a tr

ansp

aren

t prio

ritisa

tion

proc

-es

s in

whi

ch c

riter

ia, e

.g. e

cono

mic

retu

rn,

regi

onal

dist

ribut

ion,

pov

erty

redu

ctio

n, e

tc

are

clear

ly de

fined

. Thi

s, es

pecia

lly if

bas

ed o

n a

stak

ehol

ders

’ con

sulta

tion

proc

ess,

wou

ld

cont

ribut

e to

the

crea

tion

of su

ppor

t for

the

road

sect

or p

rogr

amm

e.

• Th

roug

h co

mbi

ning

eco

nom

ic ju

stifi

catio

n an

d so

cio-e

cono

mic

crite

-ria

in th

e G

HA

and

DU

R pr

iorit

isatio

n pr

oces

s, a

mor

e ba

lance

d pr

oces

s is t

o be

exp

ecte

d. It

shou

ld b

e no

ted

that

the

actu

al ef

fect

s hi

ghly

depe

nd o

n th

e ch

osen

set s

ocio

-eco

nom

ic cr

iteria

and

the

weig

ht o

f tho

se c

riter

ia.

• Th

e RP

M, w

ith it

s par

ticip

ator

y ap

proa

ch re

sults

in a

road

prio

ritisa

-tio

n pr

oces

s res

pond

ing

to lo

cal d

eman

ds.

Med

ium

9.

Har

mon

ise

road

sta

ndar

ds

Road

stan

dard

s sho

uld b

e har

moni

sed.

Give

n ro

ad co

nditi

ons a

nd tr

affic,

the

combin

ation

of th

ese st

anda

rds w

ith ty

pi-ca

l uni

t pric

es for

main

tenan

ce, p

rovid

es a

meth

od fo

r dete

rmin

ing a

nnua

l bud

gets i

n a

system

atic

way.

Clea

rly d

efin

ed ro

ad st

anda

rds,

in c

ombi

natio

n w

ith a

dist

inct

set o

f uni

t rat

es (m

ater

ials,

la-bo

ur, e

tc),

facil

itate

s the

bud

getin

g pr

oces

s in

the

road

sub-

sect

or. F

urth

erm

ore,

it as

sists

ag

enci

es in

their

clie

nt ro

le in

relat

ion

to c

on-

tract

ors.

• N

otw

ithst

andi

ng th

e de

velo

pmen

t of r

oad

desig

n gu

idel

ines

, e.g

. th

roug

h th

e Ro

ad D

esig

n G

uide

at G

HA

, the

re is

not

yet

a se

t of

com

mon

road

stan

dard

s, ba

sed

on a

typi

cal r

oad

cate

goris

atio

n. T

his

has p

reve

nted

the

envi

sage

d ef

fect

s, i.e

. con

tribu

tion

to th

e bu

dget

ing

proc

ess a

nd th

e cl

ient

role

of th

e ag

enci

es, t

o m

ater

ialise

.

Low

-med

ium

ANN

EX 8

–SU

MM

AR

Y O

F EF

FEC

TS M

ATR

IX

10. F

urth

er im

prov

e ro

ad fu

nd

perfo

rman

ce

The G

RF sh

ould

contin

ue to

pro

vide a

fin

ancia

l bas

is for

main

tenan

ce an

d reh

a-bil

itatio

n wo

rks.

Effo

rts sh

ould

be m

ade

to fur

ther

safeg

uard

time

ly rel

eases

of

funds

. If f

utur

e rele

ases

remain

prob

lem-

atic

a tra

nsfer

of th

e fun

ds to

an

accou

nt

at a

comm

ercial

ban

k sh

ould

be co

nsid-

ered.

Furth

ermor

e, rev

enue

s sho

uld be

in

creas

ed ac

cordin

g to s

ched

ule w

ith em

-ph

asis

on ra

ising

fuel

levies

. With

the

incre

asin

g fin

ancia

l bas

is of

the G

RF a

deba

te sh

ould

be in

itiat

ed on

futu

re all

o-ca

tion

of G

RF fu

nds.

The (

futur

e) be

ne-

fits o

f the

GRF

shou

ld be

comm

unica

ted

to th

e pub

lic to

crea

te su

ppor

t for

the f

und

and

for th

e prin

ciple

of ro

ad u

ser ch

arg-

ing.

A g

ood

func

tioni

ng ro

ad fu

nd p

rovi

des s

uffi-

cien

t fun

ds th

at a

re ti

mely

relea

sed

for i

n th

e fir

st p

lace

road

main

tena

nce

and

if fe

asib

le,

addi

tiona

l pur

pose

s, e.g

. roa

d sa

fety

, roa

d re

-ha

bilit

atio

n an

d re

cons

truct

ion

wor

ks. A

s a

resu

lt th

e ro

ad n

etw

ork

will

be

pres

erve

d,

posit

ively

impa

ctin

g th

e ro

ad c

ondi

tion

mix

.

• Th

e gr

adua

l inc

reas

e in

fuel

levies

has

bro

aden

ed th

e fin

anci

al ba

sis o

f th

e G

RF. H

owev

er, n

ot a

ll re

venu

es a

re a

lloca

ted

to ro

ad m

ainte

-na

nce,

with

GRF

fund

s also

bein

g all

ocat

ed to

reha

bilit

atio

n w

orks

. Th

e bo

ttom

line

is th

at ro

ad m

ainte

nanc

e is

not f

ully

fund

ed th

roug

h th

e G

RF y

et.

• Ti

mely

relea

ses c

ontri

bute

to th

e ab

ility

to b

ette

r plan

main

tena

nce

wor

ks. E

vent

ually

this

may

resu

lt in

low

er u

nit p

rices

, as p

rem

ium

s on

late

paym

ents

will

be

take

n ou

t of u

nit p

rice

calcu

latio

ns.

• In

itial

figur

es in

dica

te th

at th

e gr

adua

l inc

reas

e of

fuel

levies

has

not

re

sulte

d in

dec

reas

ed fu

el co

nsum

ptio

n.

Med

ium

-hig

h

11. F

acili

tate

furth

er p

rivat

e se

c-to

r par

ticip

atio

n Th

e priv

ate s

ector

has

come

a lo

ng w

ay

unde

r RSE

P an

d cur

rently

a lar

ge sh

are

of th

e roa

d wor

ks is

don

e by t

he p

rivat

e sec

tor. T

he G

oG sh

ould

contin

ue to

facil

i-ta

te th

e deve

lopme

nt of

the p

rivate

secto

r in

orde

r to c

reate

a mor

e mat

ure p

rivat

e sec

tor th

at is

able

to com

pete

on a

dome

s-tic

and

inter

natio

nal l

evel.

Thro

ugh

outs

ourc

ing

of a

ctiv

ities

it is

in-

tend

ed to

cre

ate

a m

atur

e pr

ivat

e se

ctor

and

to

stim

ulat

e co

mpe

titio

n be

twee

n co

ntra

ctor

s, po

sitiv

ely a

ffect

ing

cont

ract

ors’

perf

orm

ance

in

term

s of v

alue

for m

oney

.

Alth

ough

bey

ond

the

scop

e of

the

desc

riptio

n of

the

reco

mm

enda

tion,

the

priv

ate

sect

or is

lo

oked

at t

o in

vest

in th

e ro

ad se

ctor

. As a

co

nseq

uenc

e fu

nds w

ill b

ecom

e av

ailab

le to

th

e se

ctor

, res

ultin

g in

an

impr

oved

road

net

-w

ork.

The

add

ition

al co

nseq

uenc

e m

ay b

e a

road

use

cha

rge,

mos

t lik

ely th

ough

tolli

ng,

affe

ctin

g th

e ac

cess

ibili

ty o

f the

road

net

wor

k.

• O

utso

urci

ng o

f main

tena

nce

and

cons

truct

ion

wor

ks is

a w

orld

wid

e ph

enom

enon

, bas

ed o

n th

e co

ncep

tion

that

the

priv

ate

sect

or is

ca-

pabl

e of

car

ryin

g ou

t the

se w

orks

mor

e ef

ficien

tly. I

n or

der t

o re

ap

the

bene

fits o

f out

sour

cing

, cer

tain

con

ditio

ns m

ust b

e m

et, s

uch

as

capa

city

of t

he lo

cal i

ndus

try; c

apac

ity to

car

ry o

ut th

e cl

ient

role

and

th

e op

portu

nity

to d

owns

ize

the

orga

nisa

tion

(the

forc

e ac

coun

t). A

s in

dica

ted

abov

e, th

ere

is am

ple

room

for i

mpr

ovem

ent i

n th

e cl

ient

s’ an

d co

ntra

ctor

s’ ca

pacit

y. Th

e in

abili

ty to

impl

emen

t a re

trenc

hmen

t pr

ogra

mm

e at

GH

A c

reat

es la

rge

num

bers

of r

edun

dant

staf

f.

• Pr

ivat

e se

ctor

fina

ncin

g ha

s not

yet

mat

erial

ised.

Med

ium

ANN

EX 8

–SU

MM

AR

Y O

F EF

FEC

TS M

ATR

IX

12. F

ocus

of F

TA

on tr

ansf

er o

f kn

owle

dge

and

prov

idin

g ad

ded

valu

e FT

A sh

ould

clear

ly pr

ovide

an

adde

d va

lue. S

ome o

f the

FTA

activ

ities

can

be

done

throu

gh lo

cal e

xpert

s. Fo

r this

pur-

pose

it cou

ld be

cons

idered

to es

tablis

h a

datab

ase o

f loca

l exp

erts.

In al

l ins

tances

bu

t esp

eciall

y in

the ‘

new’

field

s emp

hasis

sh

ould

be on

tran

sfer o

f kno

wled

ge.

There

fore i

t is r

equir

ed to

pro

vide c

oun-

terpa

rt sta

ff th

at ca

n ta

ke ov

er tas

ks a

nd

respo

nsibi

lities

once

FTA

term

inates

.

FTA

is to

resu

lt in

sust

ainab

le ca

pacit

y de

vel-

opm

ent t

houg

h tra

nsfe

r of k

now

ledge

in a

reas

w

here

ther

e is

a di

rect

loca

l nee

d an

d w

here

ca

paci

ty is

lack

ing

• FT

A h

as p

rove

n to

be

an e

ffect

ive

inst

rum

ent i

n ca

pacit

y bu

ildin

g,

espe

ciall

y if

(i) th

e kn

owled

ge b

roug

ht in

is u

niqu

e an

d no

t dire

ctly

avail

able

thro

ugh

loca

l con

sulta

nts,

i.e. m

ostly

in ‘n

ew’ a

reas

, and

(ii)

the

expe

rtise

is p

rope

rly tr

ansf

erre

d to

loca

l exp

erts

. In

gene

ral,

ther

e is

a st

rong

beli

ef a

mon

gst t

he G

oG re

pres

enta

tives

that

FTA

has

tar-

gete

d ‘n

ew’ a

reas

, req

uirin

g ex

perti

se lo

cally

una

vaila

ble;

FTA

has

ad

ded

valu

e. •

The

prop

er tr

ansf

er o

f kno

wled

ge re

main

s a d

iffic

ult a

spec

t of F

TA.

For s

ome

of th

e pr

evio

usly

‘new

are

as’,

such

as r

oad

safe

ty a

t GH

A

and

NRS

C, th

ere

is a

sust

ained

nee

d fo

r FTA

. Thi

s can

also

be

con-

tribu

ted

to th

e lac

k of

staf

f tha

t is a

lloca

ted

to th

ese

task

s.

Med

ium

-hig

h

13.

Incr

ease

prio

rity

on e

n-vi

ronm

ent a

nd sa

fety

E

nviro

nmen

t and

safet

y sho

uld re

ceive

great

er pr

iority

from

GoG

, esp

eciall

y for

sta

ff in

creas

es an

d fun

ding o

f recu

rrent

ex

pend

itures

. In

addit

ion, l

imite

d inv

est-

ment

s esp

eciall

y in

road

safet

y cou

ld we

ll res

ult in

cons

idera

ble ga

ins.

Env

iron-

ment

al im

pact

asses

smen

t need

s to b

e ap

plied

for a

ll pr

ojects

and

envir

onme

ntal

aspe

cts sh

ould

be m

onito

red d

urin

g im-

pleme

ntat

ion.

The

clea

r env

isage

d ef

fect

is to

impr

ove

the

situa

tion

in ro

ad sa

fety

, i.e.

dec

reas

e th

e nu

m-

ber o

f acc

iden

ts a

nd ro

ad fa

talit

ies a

nd to

m

itiga

te th

e ne

gativ

e im

pact

of t

rans

port

on

the

envi

ronm

ent.

• La

ck o

f GoG

ow

ners

hip

with

rega

rds t

o E

SHS

issue

s in

relat

ion

to

the

road

sub-

sect

or c

ould

, if t

he in

trodu

ctio

n of

MD

BS p

ursu

es, u

lti-

mat

ely re

sult

in fe

wer

fund

s allo

cate

d to

the

road

sub-

sect

or. T

his a

s a

resu

lt of

the

inab

ility

to in

dica

te th

e im

pact

of E

SHS

relat

ed m

eas-

ures

. •

As f

or ro

ad sa

fety

per

form

ance

, roa

d fa

talit

ies h

ave

incr

ease

d, h

ow-

ever

, fat

ality

and

mor

talit

y ra

tes h

ave

decli

ned

since

the

intro

duct

ion

of R

SDP.

•

The

estim

ated

num

ber o

f per

sons

kill

ed in

road

acc

iden

ts in

200

4 (1

,859

) is c

onsid

erab

ly hi

gher

than

the

level

in 2

000

(1,5

78).

It sh

ould

be

not

ed th

at m

obili

ty h

as in

crea

sed

in th

is pe

riod

as w

ell. I

n ad

ditio

n,

it is

a gl

obal

phen

omen

on th

at in

dev

elopi

ng c

ount

ries w

ith ra

pidl

y ex

pand

ing

mot

orisa

tion,

road

fata

lities

tend

to in

crea

se, e

ven

in c

ases

of

act

ive

road

safe

ty p

olicy

. In

time

ther

e co

mes

a m

omen

t tha

t the

de

crea

se in

acc

iden

t risk

s as a

resu

lt of

road

safe

ty e

fforts

will

offs

et

the

incr

ease

d ris

ks re

sulti

ng fr

om in

crea

sed

mot

orisa

tion,

resu

lting

in

a de

crea

se o

f roa

d fa

talit

ies.

The

chall

enge

is to

acc

elera

te th

e pr

oces

s of

bre

akin

g th

e tre

nd o

f inc

reas

ing

road

fata

lities

. The

so-c

alled

2nd

ge

nera

tion

road

safe

ty p

rojec

t app

roac

h, a

s pro

mot

ed b

y th

e W

orld

Ba

nk, i

s gea

red

tow

ards

the

reali

satio

n of

this.

Med

ium

ANN

EX 8

–SU

MM

AR

Y O

F EF

FEC

TS M

ATR

IX

14. I

mpr

ove

disb

urse

men

t pro

-ce

dure

s to

cont

ract

ors a

nd

dono

r rel

ease

s D

isbur

semen

t proc

edur

es to

contra

ctors

shou

ld be

strea

mline

d, am

ongst

othe

rs th

roug

h sh

orten

ing p

ayme

nt a

ppro

val

proce

dures

. At t

he sa

me ti

me, d

onor

rel

eases

shou

ld fol

low p

rogra

mmed

level

s. In

orde

r to g

et mo

re gri

ps on

disb

urse-

ment

s, all

dono

rs mu

st pr

ovide

MRT

pe

riodic

stat

us re

ports

on G

rant

s/Lo

ans

expe

nditu

res. A

t the

same

time

qua

rterly

rev

iews o

f imp

lemen

tatio

n sta

tus b

y both

G

oG a

nd d

onor

s will

facil

itate

procu

re-me

nt a

nd di

sbur

semen

t.

Impr

oved

disb

urse

men

t to

cont

ract

ors w

ill

posit

ively

impa

ct th

e pl

anni

ng a

nd re

alisa

tion

of p

rojec

ts. I

n ad

ditio

n, ti

mely

disb

urse

men

t w

ill a

void

fina

ncial

clai

ms f

rom

con

tract

ors,

incl

udin

g in

tere

st p

aym

ents

, and

risk

pre

mi-

ums i

nclu

ded

in th

e fin

ancia

l bid

s, lo

wer

ing

unit

rate

. Ti

mely

don

or re

lease

s will

allo

w M

RT a

nd th

e ag

enci

es to

bet

ter p

lan th

eir a

ctiv

ities

.

• So

lvin

g th

e ar

rear

s pro

blem

has

impr

oved

the

road

sub-

sect

or’s

tech

-ni

cal a

nd fi

nanc

ial p

erfo

rman

ce, a

s no

fund

s nee

d to

be

alloc

ated

to

expe

nsiv

e ne

gotia

ted

cont

ract

s and

inte

rest

pay

men

ts. P

uttin

g a

sys-

tem

in p

lace

that

is ta

rget

ed to

war

ds a

rrea

rs p

reve

ntio

n, e

.g. t

hrou

gh

the

new

Pro

cure

men

t Act

, will

furth

er h

elp th

e su

b-se

ctor

to a

void

gl

idin

g ba

ck to

the

situa

tion

in th

e lat

e 90

s. •

Eff

orts

to im

prov

e te

chni

cal,

finan

cial a

nd p

rocu

rem

ent a

uditi

ng

help

s MRT

to fu

rther

stre

ngth

en it

s exp

endi

ture

man

agem

ent a

nd

cont

rol.

Med

ium

15. P

ut p

riorit

y on

axl

e lo

ad c

on-

trol

The a

xle l

oad c

ontro

l prog

ramm

e sho

uld

receiv

e prio

rity.

Putti

ng gr

eat e

ffort

in

impr

ovin

g roa

d con

dition

s is i

neffe

ctive

if at

the s

ame t

ime d

amag

e cau

sed th

roug

h ov

erloa

ding i

s not

tack

led pr

operl

y.

The

axle

load

pro

gram

me

is in

tend

ed to

avo

id

over

load

ing

and

to li

mit

the

dam

age

from

ov

erlo

adin

g, p

ositi

vely

impa

ctin

g th

e ro

ad

cond

ition

s.

• Th

e st

udy

repo

rt Re

view

of A

xle

Load

Con

trol P

olicy

& A

ssist

ance

in

the

Impl

emen

tatio

n of

the

Act

ion

Plan

inclu

des a

calc

ulat

ion

on th

e da

mag

ing

effe

ct o

f ove

rload

ing.

The

cos

t of r

oad

repa

irs is

est

imat

ed

at U

S$ 6

.5 m

illio

n pe

r ann

um. I

f Veh

icle

Ope

ratin

g Co

sts (

VO

C)

wou

ld b

e in

clude

d, a

nnua

l cos

ts w

ould

stro

ngly

incr

ease

to so

me

US$

30

mill

ion

per a

nnum

. •

Cost

-Ben

efit

Ana

lysis

, as p

rese

nted

in th

e sa

me

repo

rt, in

dica

tes a

n In

tern

al Ra

te o

f Ret

urn

(IRR)

of 3

4% fo

r the

cas

e in

whi

ch o

nly

road

da

mag

e co

sts a

re in

clude

d in

the

calcu

latio

n. If

save

d V

OC

wou

ld b

e in

clude

d, IR

R w

ould

be

at 1

09%

.

Low

ANN

EX 8

–SU

MM

AR

Y O

F EF

FEC

TS M

ATR

IX

16. F

urth

er im

prov

e do

nor c

o-or

dina

tion

Co-op

eratio

n be

tween

GoG

and

don

ors

shou

ld be

furth

er pu

rsued

. Dep

endin

g on

dono

r will

ingn

ess, p

roced

ures

for im

ple-

ment

ation

, mon

itorin

g, ac

count

ing a

nd

report

ing sh

ould

be h

armo

nised

. GoG

pla

nnin

g and

pro

gramm

ing c

apac

ity n

eeds

to be

furth

er de

velop

ed to

mov

e int

o a

situa

tion

in w

hich

GoG

can

take

pro-

gramm

e own

ership

acco

rding

to th

e Com

-pr

ehen

sive D

evelop

ment

Fra

mewo

rk

prin

ciple.

Impr

oved

don

or c

o-or

dina

tion

cont

ribut

es to

a

cons

orte

d ac

tion,

ow

ned

and

guid

ed b

y th

e G

oG, i

n w

hich

all

reso

urce

s are

pul

led to

-ge

ther

to c

ontri

bute

to a

com

mon

obj

ectiv

e.

Com

mon

pro

cedu

res a

nd jo

int e

fforts

, e.g

. in

appr

aisal,

con

sider

ably

low

er th

e ad

min

istra

-tiv

e bu

rden

on

GoG

, not

ably

MRT

and

the

agen

cies

.

• D

onor

co-

ordi

natio

n ha

s pro

vide

d an

are

na fo

r tra

nspo

rt po

licy

dia-

logu

e an

d fo

r all

partn

ers t

o pr

ovid

e th

eir p

artic

ular

inpu

t in

the

road

su

b-se

ctor

. Ind

ivid

ual d

onor

pro

gram

mes

are

pul

led to

geth

er u

nder

on

e ov

erar

chin

g, c

omm

on R

SDP

prog

ram

me.

The

mid

-term

revi

ew

coul

d pr

ovid

e a

basis

from

whi

ch th

e ne

w (r

oad)

tran

spor

t sec

tor d

e-ve

lopm

ent p

rogr

amm

e co

uld

be d

evel

oped

. •

The

fact

that

don

ors c

ontin

ue to

pur

sue

their

ow

n pr

oced

ures

, res

ults

in

a h

igh

adm

inist

rativ

e bu

rden

on

MRT

and

its a

genc

ies.

• D

onor

co-

ordi

natio

n ha

s for

ced

spec

ific

item

s on

the

trans

port

agen

da, e

.g. t

he a

rrea

rs p

robl

em, t

he a

xle

load

pol

icy

and

the

annu

al in

crea

se o

f fue

l lev

ies.

• Su

stain

ed M

DBS

dev

elop

men

t may

resu

lt in

a w

ithdr

awal

of d

onor

s’ (ro

ad) t

rans

port

expe

rts fr

om th

e se

ctor

, neg

ativ

ely im

pact

ing

the

abili

ty to

co-

ordi

nate

mat

ters

bet

wee

n G

oG a

nd d

onor

s on

a se

ctor

lev

el, a

s wel

l as t

he p

olicy

dial

ogue

bet

wee

n G

oG a

nd d

onor

s

Med

ium

-hig

h

ghana follow-up study of the joint evalua- tion of … · 3.1 recommendation 1 - monitoring and...

Documents