Document of The World Bank

Report No: ICR0000806

IMPLEMENTATION COMPLETION AND RESULTS REPORT (IDA-35540, IDA-3554A)

ON A

CREDIT

IN THE AMOUNT OF SDR 175.3 MILLION (US$220 MILLION EQUIVALENT)

TO THE

REPUBLIC OF GHANA

FOR A

ROAD SECTOR DEVELOPMENT PROJECT

December 09, 2008

Sustainable Development Department Transport Unit Africa Region

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

ii

CURRENCY EQUIVALENTS (Exchange Rate Effective June 30, 2008)

Currency Unit = New Ghanaian Cedis (GHS)

GHS 1.00 = US$ 0.91 US$ 1.00 = SDR 0.61

FISCAL YEAR

January 1 – December 31

ABBREVIATIONS AND ACRONYMS

AADT Annual Average Daily Traffic AFD Agence France de Developpement AfDB African Development Bank B/C Benefit Cost Ratio BRRI Building and Road Research Institute CAS Country Assistance Strategy CUT Centre for Urban Transport DANIDA Danish International Development Agency DP Development Partners DFR Department of Feeder Roads DUR Department of Urban Roads DVLA Driver and Vehicle Licensing Authority DFID Department of International Development, U.K. EC European Commission EIA Environmental Impact Assessment ERR Economic Rate of Return GHA Ghana Highway Authority GIS Geographic Information System GOG Government of Ghana HDM Highways Design and Maintenance Model ICR Implementation Completion Report IDA International Development Association KfW Kreditanstalt fur Wiederofbau MDG Millennium Development Goals MOT Ministry of Transportation MRH Ministry of Roads and Highways MTR Ministry of Roads and Transport NPV Net Present Value NRSC National Road Safety Commission NTP National Transport Policy PAD Project Appraisal Document PAP Project Affected Persons PDO Project Development Objective RAP Resettlement Action Plan RAI Rural Accessibility Index RSDP Road Sector Development Project TSDP Transport Sector Development Program VOC Vehicle Operating Cost

iii

Vice President:Obiageli Katryn Ezekwesili

Country Director:Ishac Diwan

Sector Manager:C. Sanjivi Rajasingham

Project & ICR Team Leader:Ajay Kumar

iv

GHANA Road Sector Development Project

CONTENTS

Data Sheet ........................................................................................................................ i A. Basic Information........................................................................................................ i B. Key Dates .................................................................................................................... i C. Ratings Summary ........................................................................................................ i D. Sector and Theme Codes............................................................................................ii E. Bank Staff ...................................................................................................................ii F. Results Framework Analysis ......................................................................................ii G. Ratings of Project Performance in ISRs.................................................................... iv H. Restructuring (if any) ................................................................................................ iv I. Disbursement Profile .................................................................................................. v

1. Project Context, Development Objectives and Design ............................................... 1 2. Key Factors Affecting Implementation and Outcomes............................................... 8 4. Assessment of Risk to Development Outcome......................................................... 19 5. Assessment of Bank and Borrower Performance...................................................... 20 6. Lessons Learned........................................................................................................ 23 7. Comments on Issues Raised by Borrower/Partners .................................................. 24

Annex 1. Project Costs and Financing .......................................................................... 26 Annex 2. Outputs by Component.................................................................................. 28 Annex 3. Economic and Financial Analysis ................................................................. 31 Annex 4. Bank Lending and Implementation Support/Supervision Processes............. 35 Annex 5. Summary of Borrower’s ICR......................................................................... 37 Annex 6. Comments of Partners ................................................................................... 40 Annex 7. List of Supporting Documents....................................................................... 42

Map

i

A. Basic Information Country: Ghana Project Name:

GH-Road Sec Dev Project (FY02)

Project ID: P050623 L/C/TF Number(s): IDA-35540,IDA-3554AICR Date: 12/16/2008 ICR Type: Core ICR

Lending Instrument: SIL Borrower: GOVERNMENT OF GHANA

Original Total Commitment:

XDR 175.3M Disbursed Amount: XDR 175.3M

Environmental Category: A Implementing Agencies: Ministry of Roads and Transport Department of Urban Roads Department of Feeder Roads Ghana Highway Authority Cofinanciers and Other External Partners: B. Key Dates

Process Date Process Original Date Revised / Actual Date(s)

Concept Review: 01/14/2000 Effectiveness: 01/15/2002 01/15/2002 Appraisal: 01/08/2001 Restructuring(s): Approval: 07/26/2001 Mid-term Review: 04/15/2005 04/15/2005 Closing: 06/30/2006 06/27/2008 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Satisfactory Risk to Development Outcome: Low or Negligible Bank Performance: Satisfactory Borrower Performance: Satisfactory

C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings

Quality at Entry: Satisfactory Government: Satisfactory

Quality of Supervision: Satisfactory Implementing Agency/Agencies: Satisfactory

Overall Bank Performance: Satisfactory Overall Borrower

Performance: Satisfactory

ii

C.3 Quality at Entry and Implementation Performance Indicators Implementation

Performance Indicators QAG Assessments (if any) Rating

Potential Problem Project at any time (Yes/No):

No Quality at Entry (QEA):

None

Problem Project at any time (Yes/No):

Yes Quality of Supervision (QSA):

None

DO rating before Closing/Inactive status:

Satisfactory

D. Sector and Theme Codes

Original Actual Sector Code (as % of total Bank financing) Central government administration 16 13 Health 3 3 Roads and highways 81 84

Theme Code (Primary/Secondary) Access to urban services and housing Primary Secondary Decentralization Secondary Secondary Infrastructure services for private sector development Primary Other urban development Secondary Secondary Pollution management and environmental health Secondary Secondary E. Bank Staff

Positions At ICR At Approval Vice President: Obiageli Katryn Ezekwesili Callisto E. Madavo Country Director: Ishac Diwan Peter C. Harrold Sector Manager: C. Sanjivi Rajasingham Maryvonne Plessis-Fraissard Project Team Leader: Ajay Kumar Imogene R. Jensen ICR Team Leader: Ajay Kumar ICR Primary Author: Arun Banerjee John Richardson F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The development objective of the Ghana Road Sector Development Program (RSDP) is to achieve sustainable improvements in the supply and performance of roads and road

iii

transport services in a regionally equitable manner. All types of roads are included: trunk roads, feeder roads and urban roads. The road works range from routine maintenance to reconstruction. To achieve better transport services, the program extends beyond road conditions to a variety of road safety measures, improved environmental practices, better reporting and information systems. Revised Project Development Objectives (as approved by original approving authority) The original Project Development Objectives were not revised. (a) PDO Indicator(s)

Indicator Baseline Value

Original Target Values (from

approval documents)

Formally Revised Target Values

Actual Value Achieved at

Completion or Target Years

Indicator 1 : Improve road condition mix from 29% Good, 27% fair and 44% poor to 59% Good, 27% fair and 12% poor by end of project

Value quantitative or Qualitative)

29% Good condition 27% fair condition 44% poor condition

59% Good 27% fair 12% poor

39% good 29% fair 32% poor

Date achieved 04/30/2001 06/30/2006 06/27/2008 Comments (incl. % achievement)

Achievements can be considered moderately satisfactory; however, main network achieved target at 57% good, 26% fair, and 17% poor which is 100% achievement. DFR and DUR expanded network to improve accessibility.

Indicator 2 : Increase in fuel levy from Gh Cedis 230/litre to Gh Cedis 600/litre at end of project

Value quantitative or Qualitative)

Gh Cedis 230 per litre Gh Cedis 600 per litre Gh Cedis 600 per

litre

Date achieved 04/30/2001 06/30/2006 06/27/2008 Comments (incl. % achievement)

100% achievement of the expected target.

Indicator 3 : Increase in the maintainable network of feeder roads by 2000 km annually Value quantitative or Qualitative)

11,500 km 16,220 km 18,000 km

Date achieved 04/30/2001 06/30/2006 06/27/2008 Comments (incl. % achievement)

About 110% of the target was achieved.

Indicator 4 : Decline in accident fatality rate Value quantitative or Qualitative)

73 73 22

Date achieved 04/30/2001 06/30/2006 06/27/2008 Comments (incl. %

The baseline value is as reported in the PAD, however the actual accident rate in 2002 was 27. The accident rate in the country declined by about 20%.

iv

achievement)

(b) Intermediate Outcome Indicator(s)

Indicator Baseline Value

Original Target Values (from

approval documents)

Formally Revised

Target Values

Actual Value Achieved at

Completion or Target Years

Indicator 1 : Targeted routine maintenance carried out annually by the respective agencies Value (quantitative or Qualitative)

GHA 8,848 km DFR 11,782 km DUR 986 km

GHA 11,600 km DFR 13, 900 km DUR 1, 750 km

GHA 13,000 DFR 18,000 DUR 3,600

Date achieved 04/30/2001 06/30/2006 06/27/2008 Comments (incl. % achievement)

Target achieved was 120% to 200%.

G. Ratings of Project Performance in ISRs

No. Date ISR Archived DO IP

Actual Disbursements (USD millions)

1 12/27/2001 Satisfactory Satisfactory 0.00 2 04/30/2002 Satisfactory Satisfactory 0.00 3 09/30/2002 Satisfactory Satisfactory 2.91 4 03/28/2003 Satisfactory Satisfactory 13.87 5 09/27/2003 Unsatisfactory Satisfactory 27.08 6 03/15/2004 Satisfactory Satisfactory 48.98 7 09/14/2004 Satisfactory Satisfactory 69.59 8 03/22/2005 Moderately Satisfactory Moderately Satisfactory 104.11 9 10/18/2005 Moderately Satisfactory Moderately Satisfactory 139.29

10 06/28/2006 Moderately Satisfactory Moderately Satisfactory 183.51 11 02/06/2007 Moderately Satisfactory Moderately Satisfactory 211.02 12 06/27/2007 Moderately Satisfactory Moderately Satisfactory 229.81 13 12/20/2007 Satisfactory Satisfactory 246.41 14 05/30/2008 Satisfactory Satisfactory 255.87

H. Restructuring (if any) Not Applicable

v

I. Disbursement Profile

1

1. Project Context, Development Objectives and Design 1. The objective of the Ghana Road Sector Development Project (RSDP) was to achieve sustainable improvements in the supply and performance of roads and road transport services in a regionally equitable manner. Sustainabilityinvolves physical, financial, as well as environmental aspects and is closely related to the success of the institutional reforms and strengthening that are part of the project. Equitabilitycompasses geographic disparities between the south and the north, disparities of income, disparities between urban and rural areas, and gender inequalities.

1.1 Context at Appraisal 2. The project was consistent with the March 2000 Country Assistance Strategy (CAS). The objective of the CAS was to reduce the incidence of poverty through increased growth and to create gainful employment opportunities based on a two-pronged approach: (i) support policies and programs aimed at more rapid and sustained growth; and (ii) ensure social sustainability of programs. Within the Bank’s portfolio the majority of operations were focused on removing key infrastructure bottlenecks, especially in the transport, energy, and water sectors. 3. The RSDP supported the CAS in two ways. First, was to increase Ghana's competitiveness in foreign trade and promote linkages in domestic markets. These linkages were expected to decrease the cost of access by the poor, and particularly women, to social services, markets and economic opportunities. Second, by reducing transport costs through timely maintenance, rehabilitation and reconstruction of roads; it was expected to build and utilize local capacity in the public and private sectors while also encouraging regional equity in the development of the transport network and of transport services. 4. However there was another dimension as well. On the positive side, there had been - over several years - significant gains in the management of the road sector. The Ministry of Transportation had begun to promote/introduce integrated management of the sector, economic criteria were beginning to be applied in the planning and prioritization of expenditures, there was a well functioning Road Fund which was cited by many as a real success story, with the new focus on preservation of the network. The amount of maintenance being carried out was increasing, and the share of the network in good condition was growing. The government was managing the donors well, replete with an annual government-led "self study" which government presented at an annual donors' conference. On the negative side, the Ghana Highway Authority had abused its relative independence (and lack of oversight) by signing contracts for which adequate funds were not available and building up large arrears through failure to pay and associated penalties. Better management and oversight clearly were needed. 5. Concurrently, the health sector in Ghana had a successful SWAP underway in which IDA funds were being pooled with those supplied by government and other

2

donors. The government was interested in a similar approach for roads, but - upon review - the Bank and several donors decided that roads investments were too large and lumpy for this approach, and in any case, several donors wanted to get credit for the specifics of their support. The Bank team tried to develop a programmatic approach that was a sort of middle ground - whereby funds would be allocated according to economic criteria and all expenditures would be tracked in an integrated financial management system. A sub-idea was that the Bank would finance 100 percent of RSDP monitoring (helping cash flow and ensuring full payment of the local share of contracts), as the integrated Financial Management system would show that government had contributed at least 10 percent of the roads program overall and was thus covering the tax element overall. The intention was also to develop one Project Implementation Plan (PIP) for the program that would apply to all sources of funds, but this turned out not to be entirely practical. 6. Consistent with this integrated approach, government made the decision to establish Ministry of Transportation (MOT) to link policy, oversight and implementation and to promote decentralization. However, soon after appraisal, new government took over and during the initial period of project implementation, there were attempts by the new Minister of Transportation to change prioritization of the road network. The key persons in the Ministry were replaced and while road fund continued to receive dedicated funding, its focus on maintenance was somewhat diluted. During the following years in implementation, the Bank together with other development partners continued to work with the Ministry to strengthen the planning basis and management of the road fund.

Transport Sector Overview 7. The transport sector played a strategic role in the Ghana economy. It accounted for approximately 9 percent of GDP and generated a significant share of the revenues of the Government of Ghana (GOG). Ghana had a well developed transportation system consisting of two large deep-water ports; a 944 km railway system serving the southern part of the country; a 40,000 km road network consisting of 13,433 km of trunk roads, 24,000 km of feeder roads and over 2,200 km of urban roads; one international airport and 8 regional airports and airstrips. 8. Roads were the predominant mode of transportation, accounting for over 95 percent of all freight and traffic movements in the country. There were no widely available alternatives other than roads for the movement of bulk commodities for export. The railway network had limited coverage and operated at low efficiency under parastatal management. Internal water transport was limited to Lake Volta. The road transport industry, dominated by the private sector, had unrestricted entry and competition was prevalent, but its efficiency was constrained by the high cost poor roads imposed on vehicle operation. 9. Since 1990, the GOG deployed major efforts to remedy deficiencies in the transport sector with assistance from the Bank and a number of other donors. In 1997, GOG reformed its own role and function in the sector by merging its involvement in all

3

transport modes into one Ministry, the Ministry of Roads and Transport (MRT), and adopting the principle that Government’s role should be that of regulating, managing and monitoring, and not of an executing agent. Main issues in the Road Sector 10. Management Capacity. The road sector agencies suffered, in varying degrees, from weak management. Ghana Highway Authority (GHA), the largest, installed adequate management systems and tools, but their application was not satisfactory. Department of Feeder Roads (DFR) and Department of Urban Roads (DUR) needed to complete on-going development of their systems and ensure that they were adapted to the decentralized configuration of the future. There was a pressing need for an effective, integrated financial management system of the Ministry and the three agencies, and for an overall public procurement code to be established and utilized. 11. Government Arrears. A particular issue that had its origin in the roads sector involved the substantial sums the Government owed to contractors for road works carried out in the past. Nearly all of these debts related to contracts financed entirely by the Government and often awarded without competition. Elimination of the problem was considered a pre-requisite for proper sector management, and agreement on an acceptable solution within a realistic timeframe was a condition of RSDP negotiation. 12. Road Maintenance Funding and Management. An issue of the recent past that had shown improvement was the stability of the funding of road maintenance. Revision of the structure and operations of the Road Fund was undertaken and the Fund’s revenues derived from a fuel levy (about 85 percent of the total), and various other road related tariffs. Collection and disbursement of these revenues were outside the purview of the Treasury and under the authority of the Road Fund Board, which had a majority of private sector stakeholders. While the overall performance of the Road Fund was good, a substantial backlog remained in maintenance of large segments of the road network. 13. Traffic Safety. Traffic safety was a very serious problem on the entire road network, but especially on those parts under the responsibility of the GHA and the DUR. The monetary value of losses due to road accidents was estimated to account for almost 2 percent of GDP. Accident frequency in Ghana was about ten times the average European level, and there was growing public awareness of the need to take firm action to curb and mitigate the effects of road accidents. Government Strategy 14. GOG initiated a wide range of new approaches to develop and improve infrastructure networks and services. Ghana became one of the pilot countries for implementation of the Comprehensive Development Framework (CDF) which was applied by Ghana and its development partners to increase the impact of external resources on poverty reduction. As part of this effort, a Roads and Transport Strategy was developed by the MOT. The strategy identified specific objectives for the transport sector

4

and strategies for dealing with the challenges and issues in each of the sub-sectors. The main elements of this strategy with respect to roads were to:

(i) Develop in-country capacity for government institutions and the private sector to coordinate and manage the road network efficiently;

(ii) Ensure sustainable funding for the road sub-sector program; (iii) Base road sub-sector investment decisions on sound socio-economic and

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

growth and delivery of social services; (v) Reduce gender, regional and socio-economic disparities in access to transport

to help achieve poverty reduction, national integration, unity and stability; (vi) Integrate the road network with other modes of transport to promote the

development of an efficient transport system; (vii) Develop a comprehensive road safety program to reduce road transport

fatalities; and (viii) Mitigate the negative environmental and social impact of road related

activities. Sector Issues to be Addressed by the Project and Strategic Choices: 15. Based on the GOG’s sector strategy, the key road issues to be dealt with under the RSDP were: 16. Decentralization. The structure of decision-making related to roads in both urban and rural areas was expected to continue to evolve during the project period. The RSDP was designed so that the Ministry of Roads and Highways (MRH) and its agencies could respond to and participate in this process. 17. Poverty Alleviation. The road sector was beginning to contribute proactively to the GOG’s declared goal of giving first priority to mitigating extreme poverty wherever it existed. This focus was to sharpen throughout the RSDP period and cause greater focus on extending and maintaining the feeder road network and upgrading roads in the poorer areas of towns. 18. Safety. Under the previous Highway Sector Investment Project (HSIP) an environmental and road safety department was created in GHA, but no significant progress had been made in road safety. To address these problems, a comprehensive road safety program was to be developed under the RSDP. 19. Social Sustainability and Equity. Social assessments were being carried out within the sector as pilots, but were not being systematically applied. Under the RSDP, social impact assessments were to be conducted systematically to mitigate negative impacts and maximize benefits for targeted groups.

5

20. Environment. Following successful implementation of Environmental Impact Assessments (EIAs) in highway projects, these were to be introduced in a systematic fashion for feeder roads and urban roads under the RSDP. 21. Sector Management and Implementation Capacity. Issues in these areas fell into two broad categories: those that needed to be addressed in the initial stages of the program, and those that the program itself would address over time. The first category comprised (i) design and start of a payment plan to eliminate the arrears problem and isolate it from the RSDP until its final resolution; (ii) establishment of the expanded environmental and social assessment and mitigation system to cover DUR and DFR in addition to GHA; (iii) establishment of a reformed financial management system in the Ministry and its agencies; (iv) agreement between the GOG and the donor community on the design of a joint decision-making process relevant to the RSDP being implemented in accordance with the Comprehensive Development Framework; and (v) assignment of staff in the Ministry and the agencies of sufficient number and qualification to make this process work. The second category covered: (i) establishment of the GOG procurement code; (ii) consolidation of the use of existing contract management systems and related monitoring and decision-making processes; (iii) continuous development of the RSDP management aspects relevant to GOG’s decentralization program; and (iv) long-term but less critical issues being addressed through training programs under the RSDP for the Ministry, its agencies and the private sector. 22. Sector Programming and Analysis. Priority was to be given to the establishment of a sound basis for analysis and programming in the sector. There was a need for comprehensive but manageable databases on the state of roads, permitting realistic estimates of maintenance rehabilitation and new investment needs. 23. Human Resource Development. The capacity of middle and lower level technicians in the road agencies required improvement. A comprehensive program to address this situation was drawn up which included in-country and external training in the form of apprenticeships, internships and scholarships for university graduate, and a comprehensive training program for developing staff capacity in using HDM4 and Geographic Information System (GIS).

1.2 Original Project Development Objectives (PDO) and Key Indicators 24. The development objective of the RSDP was to achieve sustainable improvements in the supply and performance of roads and road transport services in a regionally equitable manner. The key performance indicators that were selected to measure the achievement of the project development objective were:1

1 The performance indicators as provided in the project appraisal document (PAD) main text (A.2) are different from those in Annex 1. As the indicators in the annex are more specific and detailed, they are used in the ICR for comparison purposes.

6

i) Road network condition mix improved from 29 percent good, 27 percent fair, and 44 percent poor in 2000 to 59 percent good, 27 percent fair, and 12 percent poor

ii) Average travel time between district capitals reduced by at least 15 percent iii) Ratio of all road works carried out in the 4 northern regions compared to the

grand total be at least maintained over the 4-year period iv) Amount of maintainable feeder roads increased from 11,500 km to 16,220 km v) Compliance with axle load limitations increased by 10 percent. vi) Number of vehicles inspected annually increased to 80 percent of total

number of vehicles registered. vii) Fatality rate of 73 per 10,000 vehicles reduced by 5 percent2

viii) Fuel levy increased from cedis 230 per liter to cedis 600 per liter

1.3 Revised PDO and Key Indicators, and Reasons/Justification 25. The PDOs were not revised as they remained relevant throughout project implementation. However, the indicators were expanded informally, in discussions with government and other development partners, to reflect the emerging sector priorities and the need to measure the “outcome” impact more broadly. In addition to the key indicators developed during appraisal, during implementation the concept has evolved to include the impact of transport sector on achievement of the Millennium Development Goals (MDGs). Accordingly, the indicators have been expanded to include: (i) rural accessibility index (RAI), (ii) cost of transport services; (iii) share of maintenance needs met; (iv) agricultural trend and income generation (land under cultivation, land values, farm gate prices, extension services, livestock ownership, income levels); (v) health (facilities, number and qualification of staff, timeliness of supplies, family planning patterns, disease prevalent along road corridors, travel time to health centre); (vi) education (number and types of schools, quality, distance, attendance rates, enrollment rates); (vii) environment (pollution, road safety issues); and (ix) delay at ports. This will enable the government to assess the overall socio-economic impact of roads that have been rehabilitated in the past as well provide them with a stronger basis for future planning and management of roads.

1.4 Main Beneficiaries 26. The beneficiaries of the improved road network were to be:

• commercial and private road users profiting from improved road conditions; • areas which were depressed and had large disadvantaged populations were

targeted for both the feeder roads and urban roads programs, by specifically identifying road stretches using selection criteria designed to insure that investments responded to declared community needs; and,

• pedestrians in rural and urban areas who suffered disproportionately from road accidents.

2 This information is reported from the PAD. However, statistics as reported in the MOT publication is 27 accidents per 10,000 vehicles in 2002, which is used as a baseline in this project.

7

1.5 Original Components 27. The project had the following six components:

i. Routine Maintenance – patching of potholes; light grading; grass cutting; tree and bush clearing along the roadside; and cleaning of gutters, drains and culverts. The annual target was an average of 27,250km of all types of roads (wholly government funded);

ii. Periodic Maintenance, Minor Rehabilitation and Minor Upgrading – spot improvement, repair and resurfacing of short stretches of roads, repair of drains, culverts and slopes, re-graveling, resealing, and minor upgrading of gravel to bituminous roads;

iii. Major Rehabilitation, Reconstruction and Upgrading – reconstruction of heavily degraded road sections, upgrading from one surface type to another; placing asphalt concrete overlays, and repair and construction of bridges, culverts, and other structures;

iv. Traffic Management and Road Safety – strengthening the National Road Safety Council (NRSC) and Driver and Vehicle Licensing Authority (DVLA), developing a comprehensive road safety strategy and implementation programme, and setting standards for safety, reliability and efficiency in the transport sector;Institutional Strengthening – policy and institutional reforms (including strengthening of environmental management, decentralization, development of a national transport strategy encompassing rural and urban transport, and road safety); training studies, technical assistance, and provision of buildings, vehicles and equipment; and Project Operation – planning, management, coordination and reporting for the 3-year implementation period of the road programme by the participating agencies.

8

28. Table 1 presents a summary of the original RSDP components and their indicative costs:

Table 1: Summary of RSDP Components and Cost

Component

Indicative Cost (US$

million)

% of Total

Bank financing

(US$ million)

%of Total

Routine maintenance 101.37 8.5 0.00 0.0 Periodic maintenance, Minor Rehabilitation and Minor Upgrading

416.03 34.9 57.50 26.1

Major rehabilitation, Reconstruction & upgrading

559.20 47.0 119.00

54.1

Traffic management & safety 11.00 0.9 2.60 1.2

Institutional strengthening 55.40 4.7 38.40 17.5

Project operation 48.00 4.0 2.50 1.1

Total Project Costs 1,191.00 100.0 220.00 100.0

Front-end fee 0.00 0.0 0.00 0.0

Total Financing Required 1,191.00 100.0 220.00 100.0

Revised Components

29. The main project components were not revised during the implementation period. However, financial allocation from the IDA credit to the different components changed as needed and as agreed with the GOG.

2. Key Factors Affecting Implementation and Outcomes

2.1 Project Preparation, Design and Quality at Entry 30. Project preparation was satisfactory: (i) a qualified team with the required skill mix was in charge of project preparation, (ii) the design of the project was based on detailed technical reviews of alternatives, tested parameters and lessons learned from similar projects, (ii) major risks and their mitigation were clearly identified, (iii) an adequate monitoring systems and related tools were established from the onset, (iv) financial and economic analyses were conducted using tools already in place in other operations, and (v) safeguards issues were properly covered based on an appropriate participatory process and full disclosure. 31. Project design drew heavily on lessons learned from previous highway sector projects. Lessons learned and reflected in the project design included: (i) the need for a participatory design process by maintaining consistent dialogue with stakeholders (ii) the importance of donor coordination and consultation to address imbalances in the sector program, (iii) comprehensive sector management support by ensuring financial discipline and transparent reporting at the national Government level to ensure that arrears of maintenance are dealt with in a timely manner, (iv) the importance of balancing stable

9

maintenance funding with better programming, and (v) the need for improved resource allocation criteria to ensure equitable distribution of resources across the road sector. The successful reflection of these lessons learned in the project design ensured a well designed project. There was no formal quality at entry assessment conducted for the project.

2.2 Implementation 32. There were no major changes in the project and there was no formal Quality of Supervision assessment carried out for this project. Mid Term Review 33. The Bank conducted a Mid Term Review (MTR) of the project in April 2005, and assessed the overall progress of the project towards achieving its development objectives. Based on the findings of the MTR, the mission made recommendations for the remaining phase of the project. The main recommendations of the MTR was the establishment of a Monitoring and Evaluation Unit within the Ministry to ensure that all projects under the RSDP are executed in line with the national development priorities of the GOG in the road sector and to strengthen the planning, programming and budgeting capacity within the ministry and its agencies. Based on this recommendation, a Monitoring and Evaluation Unit was established in the Ministry. In addition, recognizing the need to strengthen delivery of project outcomes, studies were initiated to examine: (i) road fund management and financing; (ii) axle load control; (iii) domestic construction capacity; and (iv) public private partnership (PPP) possibilities in the road sector. The studies have now been completed and an action plan has been developed to be implemented as part of the next five-year Transport Sector Development Program (TSDP) developed by the Ministry of Transportation, Ministry of Aviation, and Ministry of Harbours and Railways.

10

Project at Risk

34. The project’s DO rating was downgraded to “Unsatisfactory” in June 2003 due to a lack of progress in settling of arrears, lack of a prioritized plan for development and maintenance, insufficient focus on maintenance and inefficiencies in the use of resources which focused on development instead of maintenance. However, the GOG reacted quickly to the downgrading and initiated actions on all of the issues which gave sufficient confidence to the Bank to change the DO rating back to “Satisfactory” by December 2003.

2.3 Monitoring and Evaluation (M&E) Design, Implementation and Utilization 35. Monitoring and evaluation arrangements were considered satisfactory. The project was monitored by the Ministry and reporting was consolidated in a single quarterly report covering all major donors to the road sector. Annual technical and financial management audits were carried out, enabling the Ministry and its agencies to make improvements in their sector management in the course of project implementation. The indicators used were for the most part measurable and meaningful. Annual sector meetings involving the GOG and its development partners were used as a basis for reflection on achievement of targets and planning the way forward. 36. The MOT, together with Ghana Statistical Service with support from DANIDA has set up a transport indicators and data management initiative. The program will serve as a reliable and sustainable one-stop shop for all transport related data and performance indicators. 2.4 Safeguard and Fiduciary Compliance 37. RSDP initiated the first ever, preparation and implementation of Environmental Impact Assessment (EIAs) and Resettlement Action Plans (RAPs), in the history of the road sector in Ghana. The mid-term review April 2005, rated environmental safeguards satisfactory, but social safeguards performance were found to be in non-compliance with Bank policy, as civil works for three contracts, out of 110, started before the completion of the RAPs; and the three contracts had outstanding compensation to be paid to project affected persons (PAPs). The three contracts were: Mallam – Kasoa Road Rehabilitation Project (Accra), Teshi Link Road (Accra) and Asafo market junction (Kumasi). To redress the social safeguards performance of the three contracts, a resettlement audit was commissioned and competed in February 2007.

11

38. An action plan to address the outstanding compensation was incorporated in the audit report. The plan was implemented with satisfaction by April 2008. In addition to the resettlement audit, the Bank Team also provided hands on training in safeguards instrument preparation, to the environmental desks of GHA, DUR and selected local consultants working with the two road agencies. As a result, in the preparation of the Ghana Urban Transport Project (GUTP), the safeguards documents (Environmental and Social Management Framework and Resettlement Rehabilitation Framework) prepared by DUR, were rated good practices by ASPEN. 39. Project accounting and financial management reporting systems, including arrangements for audits have been satisfactory. There have been no major financial accountability issues and performance of the implementing agencies in procurement has been also satisfactory; all contracts were awarded according to procedures and completed on time before the project closing date.

2.5 Post-completion Operation/Next Phase 40. Preparation for a follow-on project (Transport Sector Program) commenced before project closure to allow for a smooth transition period. The proposed project reflects GOG’s changing priorities to focus on the Transport Sector as a whole rather than just the road-subsector, as in earlier projects. At the close of the RSDP, the Road Fund was generating about US$130 million annually – sufficient to meet all the routine maintenance needs and an increasing percentage of the periodic maintenance needs of the road network. Studies were undertaken and proposals were made to (i) improve the working relationships between the three transport subsector ministries to ensure better coordination between them; (ii) improve the functioning of the Road Fund; (iii) support the local construction industry; and (iv) restructure the Ministry and its agencies for more efficient management of the network. A National Transport Policy has been prepared by the three ministries of transportation. 41. An Urban Transport Project focusing on Accra and Kumasi is also underway, building on the improved urban network and urban transport policy. The project includes a pilot Bus Rapid Transit route, improved and centralized traffic management for the two largest cities in Ghana and the creation of a Centre for Urban Transport (CUT) to assist municipalities in the management and operation of public transport services.

3. Assessment of Outcomes

3.1 Relevance of Objectives, Design and Implementation 42. The objective of the project was highly relevant, as was the design of the project and its implementation. The project objectives were consistent with Ghana’s priorities for the road sector, and fully in line with the Bank’s Country Assistance Strategy. The project was large, complex, nation wide in scope, and required coordination between several implementation agencies and a large number of development partners. Although

12

the implementing agencies started out somewhat slowly, they built up their capabilities steadily which has provided a sustainable foundation for the future. 43. One of the key project’s strengths was efforts by the Ministry of Transportation to harmonize development partners’ activities as reflected in:

• A common National Transport Policy • Common basis of annual audits • Common performance monitoring arrangements • Common framework for monitoring and evaluation • Common investment program • Regular monthly meetings and annual meeting • Common tools for planning and programming of works • Coordinated road inventory system based on GIS • Systematic use of tools such as HDM4 and RED for planning, programming, and

budgeting of all maintenance activities

3.2 Achievement of Project Development Objectives.

44. The RSDP has contributed significantly to the improvement of the road transport sector of Ghana and provided the platform for the effective and continuous development of the road sector in the future. The development objective of the RSDP was to achieve sustainable improvements in the supply and performance of roads and road transport services in a regionally equitable manner. This was geared towards addressing disparities of income, disparities between urban and rural areas and gender inequalities, alleviating poverty and engendering broad based economic development. The main target of the project was to improve productivity and competitiveness of the local economy and simultaneously improve access by the poor to the benefits of economic development through a set of key performance indicators. 45. Overall, achievements of the road condition mix of 39 percent good, 29 percent fair and 32 percent poor can be considered moderately satisfactory as against the planned target of 59 percent good, 27 percent fair and 12 percent poor by the end of the Project due to factors explained further as follows. The main road network, managed by GHA, achieved the target at 57 percent good, 26 percent fair, and 17 percent poor. Nevertheless, the overall achievements are low because: a) length of the road network as reported in 2002 did not account for a sizeable feeder roads network (mainly earth tracks) because the data base available at the time was not complete. With improvements in technology, particularly GIS capability on part of the Department of Feeder Roads, it became possible to map and monitor the available network exhaustively, resulting in an increase in reported length of the network. Thus although the network condition was improved in absolute length as planned, the proportions fell short (because of an increase in the denominator - the network size); b) the requirements of achieving MDG goal of Rural Accessibility Index (RAI) required some extension of the network to inaccessible areas; and c) creation of new districts, growth and expansion of urban areas has also contributed to an increase in feeder and urban roads network.

13

46. Findings from the monitoring and evaluation studies suggest achievements concerning reductions in travel times, reductions in transport cost to major markets and health facilities, increases in average monthly incomes and expenditures of farmers by a minimum of 10 percent, more than five times reduction in waiting time for transport (rural and urban), increase in major farm produce prices by a minimum of 50 percent, an increase of 42 percent average contact of farmers to extension service providers and, improvements in the transport-related indicators of the MDGs. 47. While some gains have been realized in traffic management and safety, the fatality rate still remains unacceptably high and efforts are continuing to reduce the number of road accidents and fatalities. Advancement in the compilation of vehicle statistics in the country is also continuing as is compliance with axle load regulations on the trunk road network and at Tema Harbor. 48. The impact of training on the human resource capacity of staff members in the sector has improved GOG’s overall capacity and impacted positively in the areas of administration, planning, supervision, monitoring and evaluation. GOG staff who have benefited from training demonstrate higher motivation and their retention rate has also improved. It would be important to ensure that the training programs are sustained in the future. 49. The Letter of Sector Policy agreed as part of project appraisal committed to ensuring sustainable funding for road sector program; it was agreed that government will improve inflow into the road fund by progressively increasing user charges towards a goal of cedi equivalent of US$130 million by end of project. Over the past five years, fuel levy increased from 230 cedis in 2002 to 600 cedis in 2007. The total inflow into road fund increased from US$51 million in 2002 to US$125 million in 2007.

Table 2: Details of Road Fund Revenue

2002 2003 2004 2005 2006 2007 In US ($ million)

51 79 84 115 118 125

3.3 Efficiency 50. Although there were significant delays in project implementation, the economic rates of return of the project investments were significantly higher than estimated at appraisal. Project life was assumed at 20 years with a discount rate of 12 percent. The economic analysis was conducted for the: (i) national highway network (GHA component) (ii) feeder road network (DFR component) and (iii) urban road network (DUR component). As RSDP is part of a sector program, the economic analysis focused on a sample of roads from each component.

14

51. At completion, Economic viability was reassessed for a sample of GHA, DUR and DFR roads and the analysis showed that (i) compared to the assumption made in the feasibility studies that average daily traffic (ADT) will on average grow at 6 percent for all road classifications, it actually grew by 18 percent for GHA roads, by 8 percent for DUR roads and by 21 percent for DFR roads; (ii) significant savings in VOC and travel time were recorded, particularly for DUR and GHA roads; and (iii) economic rate of returns (ERRs) varied between 24 percent and 167 percent for the GHA roads, between 50 percent and 110 percent for DUR roads, and between 29 percent and over 100 percent for DFR roads, all significantly higher than the appraisal estimates.

3.4 Justification of Overall Outcome Rating Rating: Satisfactory 52. The overall outcome of the project is rated “satisfactory”. Although there were some delays in overall project implementation, this is not unusual for a project of this size, institutional complexity and nationwide scope. Nor did it affect the achievement of the project development objectives and outcome. The objectives and design of the project remained highly relevant throughout and the project made a significant contribution towards the sustainable development of Ghana’s road sector. The quality and quantity of roads in both the urban and rural areas improved considerably all over Ghana; financing of road maintenance was made more sustainable through appropriate road user charges; transport costs declined as did travel time to major markets and health facilities; price of major farm products increased and there was increased contact time between farmers and extension workers. 53. Improvements were recorded in traffic management, safety, and in the compilation of a variety of transport and traffic related data which will assist in the future planning for the sector. Substantial improvements took place in the quality of sector staff through the provision of adequate training at all staff levels. All of these improvements were evident in project investments achieving economic rates of return higher than estimated at appraisal.

15

3.5 Overarching Themes, Other Outcomes and Impacts (a) Poverty Impacts, Gender Aspects, and Social Development

54. A Baseline and Impact Monitoring Study was commissioned to establish the impact of road investments being undertaken. The study established indicators for the baseline and monitoring phases and provided a good basis for assessing the impact of road investment on poverty reduction and economic development. Significant improvements were noticed in the accessibility, mobility, welfare and some MDG indices measured during the monitoring phase establishing a correlation between road investment and economic development. Some of the outcomes established by the study were:

• Average household monthly income for farmers increased by 15 percent, while monthly expenditure increased by 20 percent.

• Prices of selected major farm produce indicate increases of not less than 50 percent.

• Reduction in travel times to educational and health facilities were estimated at 14 percent and 18 percent respectively.

• There was an increase of 16 percent in transport cost to major markets and a 6 percent increase in cost of travel to health facilities. These increases were significantly lower than inflation.

• An increase of 27 percent in proportion of respondents who identified access to health facilities as good.

• Waiting times for commuters were reduced by five times. • An increase of 42 percent in the average contact per farmer to agricultural

extension services. • More than three times the proportion of respondents as previously reported

indicated passenger transport as now reliable. • Frequency of trips to health facilities increased two times. • A reduction of 55 percent of respondents who reported inaccessibility as a cause

of produce loss.

16

(b) Institutional Change/Strengthening

55. The following activities were undertaken to develop the institutional capacity of the Ministry and its agencies:

• Policy Documents on Tolling of Roads and Axle Load Control were prepared. Weigh bridges installed at six locations to check and mitigate the incidence of vehicle overloading. The action plans led to privatization of six axle load stations.

• Preparation of National Transport Policy and Strategy Document, which for the first time facilitated harmonization and integration of multiple activities carried out by different sub-ministries under a common framework

• Preparation of a Fuel levy policy study which addresses revenue generation and management issues concerning the Ghana Road Fund. The study developed a set of action plans, which are under discussion for implementation in the following years.

• Extensive external and internal training programs: (i) established a Masters program in road transport engineering at the Kwame Nkrumah University of Science and Technology (KNUST) and the twinning of the Engineering College of KNUST with the Indian Institute of Technology in Chennai, India; and (ii) launched a post-graduate program in road and transport engineering for the public and private sectors in West Africa sub region with support from the University of Birmingham, United Kingdom. A total of 35 engineers have been enrolled in the M.Sc degree program. The Ministry was able to address some identified areas of weakness in the road sector without seeking external support. The capacity to formulate policies and undertake the relevant studies has improved as the sector relied mainly on its internal capacity to prepare the Transport Policy. The use of consultants to support activities particularly in the area of financial management, procurement and project management is almost non-existent since regular GOG staff is now providing these services. However, with respect to procurement capacity, there remain a few challenges. Internal mobility of staff is quite high and so when the recipient of procurement training moves from his position, a gap is left. This is being addressed through continuous training programs and the feasibility of establishing a dedicated procurement unit is being examined. Most of the staff trained under the project have been retained within the sector as the training has been designed to solve specific sector needs thereby making the trainee motivated to stay and apply the acquired knowledge.

(c) Road Safety

56. Road safety continues to be one of the greatest challenges facing the developing world and Ghana is no exception. Ghana’s National Road Safety Commission now stands out as one of the most efficient on the continent. Under the project, a number of activities were undertaken in the area of road safety, including development of road safety action plan, capacity building in ten Regional Road Safety Committees, development and implementation of weekly electronic media programs and outreach activities targeted at various road user groups, upgrading training of over 4,500

17

commercial vehicle drivers, training of over 240,000 children and 36,000 teachers in basic traffic survival skills, and production of video documentaries on road safety to educate and inform the general public on broad road safety issues. Awareness levels are high. GHA and DUR have established in-house road safety units and have institutionalized road safety audits as part of their design process. These activities have led to a significant reduction in accidents in the country as outlined in Table 3 below. Much remains to be done, and with the cost of road deaths and injuries estimated as up to 1% of GDP, the Bank will remain engaged in efforts to promote safer roads in their follow-on projects.

Table 3: Details of Accident Fatality Rate

2002 2003 2004 2005 2006 Fatality rate per 10,000 vehicles

27 26 31 23 22

18

(d) Vehicle licensing and inspection

57. A number of activities were undertaken in the area of vehicle licensing and inspection, including modernizing registration and testing system for drivers’ license, developing environmental compliance program for vehicles, privatizing testing and examination of vehicles, and introduction of written examination for drivers in the country. These efforts have led to improvements in safety standards and the quality of life.

(e) HIV/AIDS

• Completed HIV/AIDS education in the communities along the Anyinam-Nkawkaw road project, and

• Developed by the MOT, a workplace policy to guide in-house HIV/AIDS activities.

3.6 Summary of Findings of Beneficiary Survey and/or Stakeholder Workshops 58. A number of workshops and surveys were undertaken as part of the project implementation, particularly to support development and adoption of a national transport policy and institutional development strategy, poverty impact monitoring surveys, transport indicator surveys, road safety surveys, HIV/AIDS dissemination workshops, and axle load workshop. Some of the key activities were:

59. Baseline and impact monitoring surveys: The study objective was to understand “before” and “after” situations along project corridors to enhance understanding of the impact of investments on social and economic development. The first survey was undertaken in February 2005, followed by surveys in February 2006 and February 2007. The surveys were used to collect data on indicators to establish relationship between road condition (feeder and urban roads) and accessibility and mobility indicators. 60. Transport indicator study: The transport indicator and data base study is aimed at developing indicators for monitoring and assessment of the impact of transport investments. MOT is working with Ghana Statistical Service (GSS) together with over 30 transport related stakeholders to collect and disseminate results from the studies. The surveys conducted as part of this component include: (i) institutional surveys; (ii) household surveys; and (iii) transport operator surveys. 61. Road safety workshops: A number of outreach and workshop activities were undertaken over the past five years targeted at various road user groups: school children, teachers, vehicle drivers, road agencies, private sector, insurance agents, regional road safety coordinators, etc. The workshops led to training of over 240,000 children, 36,000 teachers, 4,500 commercial vehicle drivers, ten full time regional road safety coordinators.

19

62. HIV/AIDS workshops: Various interventions have been undertaken by the road agencies with respect to incorporating HIV/AIDS issues into their projects. HIV/AIDS education in the communities along the Anyinam-Nkawkaw road project is completed while the program for the Ho-Fume and Sogakope-Adidome, Sefwi Wiawso-Benkyema roads are at approval stage. A number of workshops have been held in the past with communities and contractors along the project road to raise awareness and reflect specific concerns in the project design.

63. Environmental and Social Participation/Consultations: There were six main levels of participation/consultation.

i) Local and national government participation in decision making regarding roads or road sections to be rehabilitated/constructed.

ii) National government’s selection of contractors and consultants to be contracted for project preparation and implementation.

iii) National government’s overall supervision of project implementation. iv) Local businesses and individual citizens’ participation in project preparation,

and implementation, as contractual. v) Donors participation in government’s sector policy and investment program. vi) Project beneficiaries and project affected persons’ participation in the

preparation and implementation of safeguards instruments. 64. In conjunction with the preparation and the implementation of the safeguards instruments, a series of consultations were carried out, particularly during the social impact assessment of project affected persons (PAPs) and the implementation of the RAPs. The PAPs were also consulted again during the resettlement audit. Overall, about 5000 persons were consulted during the preparation implementation of RSDP. During the resettlement audit alone, in the month of December 2006, as confirmed by the audit reports, about 903 persons were consulted, excluding local government and national government officials. The persons consulted included 591 heads of households/house owners (about 300 females) and 312 businesses.

4. Assessment of Risk to Development Outcome 65. Rating: Low Risk posed to development outcome is considered low for the following reasons:

• Funding for road maintenance has increased consistently and the private sector is more involved in maintenance planning and implementation

• Key studies on institutional strengthening and development of a National Transport Policy have been carried out

• Improved capacity has been created to plan and manage highway network through wide spread training in HDM

• Expanded and improved road network is providing increased benefit for the population at large

• Challenges to efficiency of local construction industry have been identified and action plan is being implemented to address them

20

• A network of axle load weigh stations have been established on key routes • Substantive training program carried out, evidenced in improved performance and

ability of sector to retain staff • Mainstreaming of fiduciary functions, decreasing dependence on consultants • Road safety capacity improved, awareness created and improvements in road

safety statistics noted.

5. Assessment of Bank and Borrower Performance

5.1 Bank Performance (a) Bank Performance in Ensuring Quality at Entry

66. The quality at entry of the Bank’s performance is rated as ‘satisfactory’. The project was well designed, with clearly stated objectives. Prior to the commencement of the RSDP, the project preparation team was able to take stock of all the lessons learnt of the previous programmes, and apply them to the project design. Substantial consultations were held and reflected in the project design. The appraisal of the project was done jointly with all other development partners in the sector, providing for coordinated actions and a joint reporting format for all stakeholders. The skill mix for project preparation was good. (b) Quality of Supervision

67. The quality of supervision is also rated as ‘satisfactory’. The Bank undertook regular supervision missions and a joint World Bank and Teams from the various Road Sector Development Partners performed annual supervisory visits together with their Ghanaian counterparts culminating in extensive discussions at an end of year conference. There was effective dialogue with GOG with the team addressing issues candidly with their counterparts. The Team Leader was supported by a team of specialists in the course of the implementation. The cooperation, the sharing of monitoring results, re-orientation of policies and seeking improved impact through constant innovation was greatly enhanced. The presence of staff in the country office allowed for more continuous monitoring, participation in the monthly government/development partner road sector meetings, providing the Bank a position of influence and allowing for harmonized principles and effective knowledge sharing. Monitoring of indicators was initially inconsistent, but improved substantially by the close of project, especially after indicators were harmonized.

(c) Justification of Rating for Overall Bank Performance

68. Overall Bank performance is rated ‘satisfactory’. This takes into consideration the quality at entry, the strong cooperation between the project team and the GOG, the Bank’s ability to play a lead role in coordinating the large number of donors in the road sector, the achievement of the project development objectives and, the

21

sustained policy dialogue with the GOG leading to continuing Bank engagement in the sector.

5.2 Borrower Performance (a) Government Performance

69. Satisfactory - GOG performance as reflected through the MOT is rated satisfactory. MOT was a strong partner in sector reform and championed the dialogue throughout project preparation and implementation. MOT’s level of commitment to the sector was high. MOT successfully led the dialogue with the Development Partners and played a strong coordination role between all stakeholders. The organization of annual road sector development partner meetings created a basis for all stakeholders within and without the sector to periodically review and confirm the direction of the sector. All issues pertaining to policy reform and institutional strengthening was led by MOT. Whilst implementation activity was mainly undertaken by its agencies, MOT played a strong monitoring and coordinating role in all project activities. (b) Implementing Agency(s) Performance

70. The performance of the three main implementing agencies is discussed below. 71. Ghana Highway Authority (GHA) - The level of ownership and commitment from the GHA in achieving the Project objectives are rated satisfactory. According to GHA, the RSDP was a comprehensive and integrated project and offered an unique opportunity in the realisation of the agency’s objectives. An enabling environment was created for the beneficiary communities, contractors and consultants during the implementation of the project. Beneficiary and stakeholder consultations and involvement was encouraged. Consultations were in the form of discussions and meetings with the aim of addressing the needs of the beneficiary communities, consultants and contractors.

72. Readiness for implementation, implementation arrangements and the capacity and of key staff for the implementation of the RSDP was moderately satisfactory. Though the GHA lacked the required staff with the requisite skills to support every aspect of project implementation, some staff of the GHA had the opportunity to undertake training tours and postgraduate training in universities within and outside to upgrade skills and knowledge. The project also gave support for institution capacity building through the provision of logistics and materials needed for GHA operations. 73. Local consultants undertook the supervision of almost all works financed under the IDA component and GHA took over the supervision after the expiry of the contract of the consultants. Since resources for monitoring and evaluation were available, GHA managed to supervise, monitor and evaluate the implementation of the project quite adequately.

22

Department of Urban Roads 74. The level of ownership and commitment from the DUR in achieving the project objectives was also satisfactory since the objectives of the RSDP were closely aligned with the agency’s objectives. As the level of ownership was high, an enabling environment was created for all stakeholders. Stakeholder consultations and involvement was adequate. These consultations were in the form of discussions and meetings with beneficiary communities, consultants and contractors. 75. The capacity for timely resolution of implementation issues by DUR was satisfactory. Improvements were noted in financial management, governance, provision of counterpart funding, and in compliance with covenants. However, in procurement matters and in seeking reimbursements from IDA, DUR’s performance could have been better. Local consultants undertook the supervision of almost all works financed under the IDA component and their performance was adequate 76. Readiness for implementation, implementation arrangements and the capacity of key staff for the implementation of the RSDP were satisfactory. Overall, DUR had the required number of staff with the requisite skills to support RSDP implementation. However, the RSDP provided support for institutional capacity building through the provision of training, logistics and materials needed for DUR operations which helped overcome many of its capacity constraints. Department of Feeder Roads 77. The level of ownership and commitment from the DFR in achieving the project objectives was satisfactory. An enabling environment was created for all stakeholders (consultants, beneficiary communities and contractors) during the implementation of the project. Beneficiary and stakeholder consultations in the form of discussions and meetings were adequate and fully addressed the concerns of the participants. 78. Readiness for implementation, implementation arrangements and the capacity of key staff for the implementation of the RSDP was moderately satisfactory. Though the DFR lacked the required number of staff with the requisite skills to support the project implementation, some staff of the DFR went on training tours and postgraduate training in universities within and outside to upgrade skills and knowledge in support of the project. The project also gave support for institution capacity building through the provision of logistics and materials needed for DFR operations. 79. DFR’s performance in the timely resolution of implementation issues was moderately satisfactory, much like the GHA and DUR and for essentially the same reasons. Performance in the areas of financial management, governance, provision of counterpart funding, procurement, disbursements and compliance with covenants can be rated satisfactory. Local consultants undertook the supervision of almost all works

23

financed under the IDA component but DFR took over the supervision after the expiry of the contract of the consultants. (c) Justification of Rating for Overall Borrower Performance 80. Based on the assessment of the performance of the various agencies in relation to the targets outlined in the RSDP, the overall performance of the Borrower is rated as satisfactory. Although the project suffered from some initial delays, both the Ministry and the three main implementation agencies improved their performance in all aspects of project implementation and met all of the physical and institutional objectives that had been set. All of the improvements that have taken place are also sustainable which is evidenced by the active leadership role that these institutions are playing in the preparation of the follow up project covering all the transport sub-sectors.

6. Lessons Learned 81. Project Preparation: The Bank’s preparedness criteria requires that first year works should be fully designed and ready for contracting as soon as the project becomes effective. Major differences between expected and actual costs may often result in the face of poorly designed projects. 82. Supporting Institutional Development. The transport sector, with its strong engineering orientation, is particularly good at resolving technical issues. However, institutional objectives (for example introducing efficiency in the management of road funds or managing political expectations) take time and there should be realism in setting goals. Where the requirements bring about changes in roles, responsibilities, and relationships, there is a need to understand the impact on the culture and values of societies, sectors, and institutions for which the change is proposed. Experience suggests that best results are achieved through long-term relationships where new ideas can be introduced indirectly and gradually, in pursuit of a shared vision and a road map. It is also critical to support institution building rather than hanging projects on a single champion, who may change during the project life. 83. Supporting a maintenance culture is often more difficult than investments in new roads. The existence of a road fund is not a sufficient condition for good management of the road network. It is equally important that there is an appreciation at the highest level to protect and preserve the existing assets. This would require that maintenance of the existing assets should be given a priority over expansion This also raises the issue of how best to manage the tension between the immediacy of the political agenda versus the longer time frame captured by economic criteria employed in the planning/ prioritization of expenditures. This tension is more problematic given the large size and relative durability of investments in the roads sector. 84. Supervision and monitoring of works: Continuous and close monitoring the execution of contract projects is essential to ensure that steady progress is maintained. This requires that the number of contracts is not very large to allow an appropriate level

24

of supervision. At one point, there were over 150 contracts let-out by DFR, each small in quantity and spread all over the country, making it difficult to supervise contracts. The option of Output and Performance Based Road Contracts should be explored to minimize the number of contracts. It is also important to periodically update the contractor classification to ensure that only well qualified contractors are able to compete while at the same time making the process transparent and open so as not to suppress competition. It is equally important to improve procurement capacity and pay special attention to retaining the qualified staff.

85. Develop a good monitoring system. A detailed monitoring and evaluation system is critical for effective supervision and to adapt the project design to address specific needs during implementation. Focus should not only be limited to capturing the “output” indicators but also the “outcome” indicators. 86. Environmental and social framework: The main lessons learned are: (i) a first time preparation and implementation of safeguards instruments requires close supervision and consistent support of the client; (ii) acquiring at detailed design stage, the Executive Instrument, which in Ghana, is the document that authorizes land acquisition, is key to a timely preparation and implementation of a RAP.

7. Comments on Issues Raised by Borrower/Partners (a) Borrower agencies

87. The RSDP has been implemented in close cooperation between the Borrower, the implementing agencies, the Bank and the other development partners (DPs) involved in the transport sector in Ghana. The exchange of ideas during implementation was continuous and frequent, with many of the DPs (including the Bank) having offices in Ghana which made the cooperation very timely and, therefore, even more effective. Even the preparation of the Bank’s Implementation Completion Report (ICR) and the GOG’s own project completion report for the RSDP was done in parallel and in close cooperation. It is therefore not surprising that the broad lessons learned by both the Borrower and the Bank are not very different from each other. The Borrower’s main conclusions were that “on the whole, the project achieved most of its relevant development objectives, which was to stimulate growth and contribute to poverty reduction through improved road infrastructure. The project also achieved satisfactory development results. Although, implementation encountered some challenges, findings from studies undertaken provide the platform to ensure better implementation of future projects. Road maintenance planning and funding is expected to be more sustainable. Implementation of maintenance programmes will benefit from improved skills and knowledge as well as general monitoring and supervision of road projects have improved. The MOT and its agencies were resourced but these resources have to be sustained to enable them to effectively carry out their responsibilities and future assignments”. 88. While the RSDP focused on the road sector only, the follow-up project - Transport Sector Development Program (TSDP) - which is currently under preparation,

25

will cover all transport related sectors (roads, ports and harbours, railways, and civil aviation) and will be implemented by the three transport sector ministries. While the scope of the TSDP will be wider, the overarching objective will essentially remain the same as that of RSDP, i.e. poverty reduction. As such, the lessons learned from RSDP are being fully integrated in the preparation of the TSDP. (b) Other partners

89. As noted before, there were a number of DPs (14) supporting the RSDP in Ghana and cooperation among them was very close. The DPs designated the European Commission (EC) as the Lead Development Partner for the transport sector and EC’s comments on the RSDP (attached in Annex 6) notes that “preparation, appraisal, and monitoring meetings of World Bank for this project were in close coordination with other Development Partners in the Transport Sector Group” and “complimentary interventions on analytical work, policy preparation and studies was achieved through close coordination, including sharing of draft ToR's and joint reviewing of each other's draft reports - thus optimizing use of resources and improving the quality of outputs”. 90. It must also be noted that while the RSDP was focused on the road sector, as the lead donor in the transport sector, the EC played a key role in the integration of various transport sub-sectors, in public finance management with respect to the transport sector, and in building up GOG capacity in policy formulation and planning. Cooperation between all the DPs is expected to continue in the follow up project which will cover all the transport sub-sectors.

26

Annex 1. Project Costs and Financing

(a) Project Cost by Component (in USD Million equivalent)

Components Appraisal Estimate (USD millions)

Actual/Latest Estimate (USD

millions)

Percentage of Appraisal

Periodic Maintenance, Minor Rehabilitation

57.50 77.61 134.9%

Major Rehabilitation, Reconstruction And Upgrading

119.00 125.10 105%

Traffic Management And Safety 2.60 3.26 125% Institutional Strengthening 38.40 48.78 127% Project Operation 2.50 5.76 230%

Total Baseline Cost 220.00 260.503

Physical Contingencies* 0.00 0.00 0.00

Price Contingencies* 0.00 0.00 0.00

Total Project Costs 220.00 260.50 118.4% Front-end fee PPF 0.00 0.00 .00 Front-end fee IBRD 0.00 0.00 .00

Total Financing Required 220.00 260.50 118.4%

* Contingencies are built into components 1,2 and 3

3 Increased figure was due to weakened dollar /SDR exchange rate

27

(b) Financing

Source of Funds Appraisal Estimate

(USD millions)

Actual/Latest Estimate

(USD millions)

Percentage of Appraisal

African Development Bank 59.90 191.43 320% Arab Bank for Economic Development in Africa

11.78 17.22 146%

Borrower 226.04 977.78 433% DENMARK: Danish Intl. Dev. Assistance (DANIDA)

34.00 65.41 192%

UK: British Department for International Development (DFID)

47.80 59.67 125%

EC: European Commission 61.96 173.42 280% FRANCE: French Agency for Development

30.20 59.17 196%

NETHERLANDS, Govt. of THE (Except for MOFA/Min of Dev. Coop

9.10 26.91 296%

GERMANY: German Technical Assistance Corporation (GTZ)

0.50 0.50 100%

International Development Association (IDA)

220.00 267.12 121%

JAPAN: Japan Bank for Internaitonal Cooperation (JBIC)

150.00 0.00 0%

JAPAN: Japan International Cooperation Agency (JICA)

10.00 92.82 928%

GERMANY: Kreditanstalt Fur Wiederaufbau (Kfw)

52.90 90.73 172%

OPEC FUND 6.00 20.48 341% FOREIGN SOURCES (UNIDENTIFIED)

261.82 0.00 0%

West African Development Fund (FONDS CEDEAO)

9.00 5.47 61%

Chinese Government - 28.00

28

Annex 2. Outputs by Component

Objectives Key Performance Indicators Status as at December 2007

Sector-Related CAS Goal: Alleviating key infrastructure deficiencies, particularly roads for the promotion of economic growth, poverty alleviation, rural development, agricultural growth and regional equality

Sector Indicators: Average VOC of transporting goods reduced by at least 10%; No. of fatalities and injuries through accidents per vehicles reduced by at least 10%.

Studies are on-going under Baseline Studies and Monitoring of the Impact of RSDP on poverty reduction Fatality risk as at end of 2006 stands at 8.22 deaths per 100,000 population

Project Development : Sustainable improvements in the supply and performance of roads and road transport services in a regionally equitable manner.

Improve road condition mix from 35% good, 45% fair and 20% poor in 2000 to 59% good, 27% fair and 14% poor by end of program. Average travel time between district capitals reduced by at least 15% by end of program; Amount of maintainable feeder roads increase from 11,500km in 2000 to 16,220km in 2006. DVLA inspection of total vehicle registered increased by 20% by end of program.

NRSC to reduce fatality rate of 73 per 10,000 vehicles by 5% by 2005. Increase fuel levy to ¢230/litre in 2001; ¢310/litre in 2002; ¢395/litre in 2003

GHA : 57% Good, 26% Fair & 17% Poor [11,180km] DFR: 35% Good, 37% Fair & 28% Poor [42,010km] DUR: 34% Good, 2% Fair & 64% Poor [9,764km] National Average: 39% Good, 29% Fair & 32% Poor Travel time between Accra and Kumasi reduced from 6 hours to 4 hours (about 50%)

Maintainable feeder roads in 2007 is 18,000km

Year

No. No.

Insp. No. Reg.

%Inspected

2002 595,250 400,522 43,257 67.3 2003 643,324 441,357 48,074 68.6 2004 702,872 442,885 59,548 63.0 2005 767,791 461,843 64,419 60.2 2006 841,314 529,661 74,247 63.0 2007 931,642 636,344 90,328 68.3 2008 (Jan-June)

987,439 341,877 54,673 34.6

Fatality rate (deaths/10,000 vehicles as at end of 2006 was 22.1. Fuel levy during 2001-2006 were ¢230/litre; ¢230/litre; ¢400/litre; ¢400/litre; ¢600/litre respectively.

29

Objectives Key Performance Indicators Status as at end of December 2007

Component 1: Routine Maint. Targeted routine maintenance carried out annually by:

GHA DFR DUR

11,600km coverage 13,900km coverage 1,750km coverage

Achievements

2002 2003 2004 2005

8,835.7 9,369 13,074.5 12,127.0

11,782.0 15,200 18,463.0 17,119.0 986.0 3,616 2,449.7 3,313.2

2006 2007 Avg

12,825.1 8,114.79 10,724

17,340.0 13,620.0 15,587 3,634.8 2,827.34 2,805

Component 2: Periodic Maint., Rehabilitation and Upgrading Targeted kilometers carried out annually by:

GHA DFR DUR

2002 2003 2004 2005 2006 2007 Total 1380 1380 1300 585.7 992 165.6 5,803 4080 4915 4000 3582 3221 1,371 21,169 211 660 735 734.3 531.17 3,209 6,081

Achievements 2002 2003 2004 2005 201.5 891.1 484 479.93 3603.0 2411 3688 3652 95.2 60.6 323 236.37

2006 2007 Total 253.72 556.06 2,866.31 1369.5 2,179.0 16,902.50 417.05 532.12 1,664.34

Component 3: Major Rehab. and Reconstruction Targeted kilometers carried out annually by:

GHA DFR DUR

2002 2003 2004 2005 2006 2007 Total 265 253 160 248 200 200 1,326 20 20 20 0 0 0 60 7 76 102 13.2 2 4 204

Achievements 2002 2003 2004 2005 40.0 150.0 180.0 209.75

- - - -- - - 16.00

2006 2007 Total 146.53 183.55 909.83

- - -7.00 7.00 30.00

Component 4: Traffic Mgmt. and Safety Planned action completed to improve traffic mgmt. & safety Engineering GHA

DUR Legal MOT, NRSC, MTTU Education BRRI DVLA

No. of road safety hazard sites treated No. of traffic signals installed 3500km of road with line marking Road Traffic Bill when passed to supersede existing ordinance Creation of accident data bank

Preparation of syllabus for driving school; Increase in private garages that carry out inspection

I21 sites treated w/calming devices 140No.of traffic signals installed 1,492km road line marking achieved Road Traffic Act has been enacted (Act 683) National road accident statistics updated from 1996-2006 by BRRI Completed and being used by designated driving schools License issued to (6) private garage operators to construct and operate.

Component 5: Institutional

30

Objectives Key Performance Indicators Status as at end of December 2007

Strengthening

Institutional capacity of MOT, road agencies enhanced for sustainable program formulation and implementation

Annual work program of agency submitted by end of August annually

Rolling multi-year program for construction and operation submitted to Ministry of Finance by October annually

% of work carried by contract (as opposed to force account)

Environmental and social assessment regulations and procedures adopted and practiced by DUR and DFR

Number of trainees completed their courses and training as programmed

Implementation of National Policy on HIV/AIDS and STDs

Compiled

Compiled

About 96% of works carried out by contract during year 2006 and 2007

Environmental and social assessment regulation and procedures adopted and practiced by Road Agencies are now incorporated in contract agreements A number of staff have benefited from local and foreign training since commencement of RSDP MOT has completed an HIV/AIDS workplace policy for the ministry but yet to complete a National policy for the road sector.

31

Annex 3. Economic and Financial Analysis 1. At appraisal, the economic viability of the project was determined by calculating the economic rate of return (ERR), net present value (NPV) and benefit cost ratio (B/C). Project life was assumed at 20 years, with a capital investment period from 2001 to 2004. A discount rate of 12 percent was assumed for the GHA component. The economic analysis was conducted for the civil works, which consist of reconstruction, rehabilitation and maintenance of the: (i) national priority network (GHA component) (ii) feeder road network (DFR component) and (iii) urban road network (DUR component). As the RSDP is a sector program, the economic analysis focused on a sample of roads from each component. These included roads in the first year, plus some roads from the maintenance and rehabilitation program in ensuing years. 2. Economic analysis was based on projections of traffic, vehicle operating costs (VOC), project economic costs and transport user benefits. For the GHA component the HDM model was used to evaluate benefits. Benefits included VOC savings, accident savings and employment benefits. Because of low traffic levels on the rural roads, the analysis of the DFR component estimated VOC savings based on traffic counts and estimated goods transport cost savings based on an assessment of agricultural production in each of the road districts. The DUR component was evaluated on the basis of VOC savings, with the HDM model replaced by a more appropriate analytical model designed particularly for this evaluation. The resulting economic indicators for the various components of the RSDP at appraisal are as follows:

Indicator At Appraisal

GHA DUR DFR

NPV (Overall) 281.0 614.5 41.3

ERR (Average) 31% 82% 75%

B/C Ratio (Average) 6 * 21

* Not calculated 3. At completion, the economic viability of the project was reassessed for a sample of GHA, DUR and DFR roads to compare them to the appraisal estimates. The assessment was carried out with respect to traffic volumes, VOC savings and time savings, all of which ultimately affect the overall ERR. A summary of this analysis shows:

• Compared to the assumption made in the feasibility studies that average daily traffic (ADT) will on average grow at 6 percent for all road classifications, it actually grew by 18 percent for GHA roads, by 8 percent for DUR roads and by 21 percent for DFR roads. The significantly higher growth rates for GHA and DFR roads have important implications in terms of achieving the PDOs;

• Significant savings in VOC and travel time were recorded, particularly for DUR

and GHA roads;

32

• ERRs varied between 24 percent and 167 percent for the GHA roads, between 50 percent and 110 percent for DUR roads, and between 29 percent and 420 percent for DFR roads, all significantly higher than the appraisal estimates.

Methodology and Assumptions: 4. The feasibility study of the feeder roads used the hybrid approach of combining the producer surplus or value added methodology and consumer surplus or savings in vehicle operating costs to economically assessed the project roads. These methodologies considered benefits or value added to farmers’ output as increased marketing surplus and reduced losses as well as savings to transporters. The cost components included the cost of improvement, consultancy fees and maintenance costs. To provide a common basis for comparison, for the feeder roads with low levels of motorization in particular, post evaluations have been conducted using the same producer surplus or value added methodologies and consumer surplus or savings in vehicle operating costs. The field data has been complemented by other secondary source information and used in the economic analysis. 5. The economic evaluation of the selected trunk and urban roads has been applied for the various construction options used for the roads improvement. Three work classes of maintenance levels, namely, routine, periodic and emergency maintenance scenarios, which are in line with the HDM-IV classification were used in the analysis. 6. The economic viability of the project has been measured mainly by calculating the ERR of the road rehabilitation component. From the findings of the ex-post evaluation for the selected trunk, feeder and urban roads, using actual contract values and updated road and traffic data, differences between the computed ERRs and estimated ERRs from earlier analyses have been explained including the following outputs:

o Summary of traffic data

o Summary of VOC savings (observed and estimated)

o Summary of time savings (observed and estimated)

o ERR/NPV for the selected roads

7. A summary of the economic analysis for the selected RSDP roads has been presented in Tables 1-3.

32

Trunk Roads

Table1 – Summary of Economic Analysis for Trunk Roads

ERRRoad Name

Length(km)

Cost(US$M)

NPV@ 15% Base Current

Study

AADT 2001(veh/day)

AADT 2007(veh/day)

Cost/km(000’s)

(US$/km)

Bole - Tinga 53.0 2.69 6.96 13 54 114 522 50.75

Mallam - Kasoa 18.0 18.0 52.61 45 167 8,306 12,946 1,000.00

Jasikan - Brewaniase 33.0 4.15 13.92 30 45 488 894 125.76

Tamale - Yendi 43.0 0.97 5.48 19 24 203 376 22.56

Urban Roads

Table2 – Summary of Economic Analysis for Urban Roads

ERRRoad Name

Length(km)

Cost(US$M)

NPV@ 15% Base Current

Study

AADT 2001(veh/day)

AADT 2007(veh/day)

Cost/km(000’s)

(US$/km)

Nsawam Road 7.0 35.73 29.20 63 110 18,507 34,565 5,104.29

Bomso Road 1.6 0.74 0.24 42 83 2,358 4,476 462.50

Daboya - Nyohini Road 1.8 1.54 0.34 25 95 2,352 3,312 855.56

Industrial Area Road 2.0 1.43 1.54 25 50 1,351 2,045 715.00

33

Feeder Roads

Table3 – Summary of Economic Analysis for Feeder Roads

ERRRoad name Length(km)

Cost(US$M)

NPV@ 15% Base Current

Study

AADT2001

(veh/day)

AADT2007

(veh/day)

Cost/km(000’s)

(US$/km)

Nobekaw - Nyamebekyere 16.6 0.77 10.37 52 64 196 420 46.39

Ampoma - Anyima 13.6 0.12 0.49 86 89 39 84 8.82

Sawla - Gelekon 10.4 0.17 0.33 35 46 2 13 16.35

Torsa - Ducie 6.0 0.07 0.22 62 67 3 16 11.67

Kwamang - Deduako 23.0 0.26 0.24 24 29 40 65 11.30

Poano - Ntinako - Adowa 12.0 0.06 0.25 72 79 117 168 5.0

Akosombo - Tortibo 6.5 0.05 0.38 120 138 14 23 7.69

Huhunya - Ehiamekyene 15.0 0.73 10.23 26 66 153 224 48.67

DaboaseJn. - Daboase 7.6 0.59 10.88 188 166 236 495 77.63

Zion Camp - Boninsuma 6.8 0.07 0.32 63 83 32 28 10.29

Pokuase - Ablekuma 8.2 0.06 0.47 104 133 251 364 7.32

34

ERR/NPV for Selected Study Roads

8. The results from the analyses show the project road investments to be economically justified. For example, improvements of the trunk roads, recorded ERRs of between 24 percent and 167 percent. The differences in the corresponding net present values are also significant. The same applies to the selected urban roads, recording ERRs of between 50 percent and 110 percent. Additionally, the feeder roads show ERRs of between 29 percent and over 100 percent. The increase is primarily due to a much higher growth in traffic volumes subsequent to project road improvements.

35

Annex 4. Bank Lending and Implementation Support/Supervision Processes

(a) Task Team members

Names Title Unit Responsibility/ Specialty

Lending Imogene Jensen Snr Transport Economist EASOP TTL Tawia Addo-Ashong Snr. Transport Specialist SASDT Engineering Kofi Awanyo Snr. Procurement Specialist EAPCO Procurement

Frederick Yankey Snr. Financial Management Specialist

AFTFM Fin. Mgmt.

Nina Chee Snr. Environmental Specialist AFTEN Environment Antoine Lema Consultant, Social Safeguards AFTTR Social Charles Boakye Snr Municipal Engineer AFTU2 Engineering Karen Hudes Snr Counsel - Legal David Weber Lead Financial Officer - Fin. Mgmt. Snorri Halgrimsson Lead Highway Engineer - Engineer Gerhard Tschannerl Lead Municipal Engineer AFTPC Engineer Richard Scurfield Lead Transport Specialist EASURTrans. Econ. Belinda Asaam Program Assistant AFTUI Prog. Support

Supervision/ICR Ajay Kumar Lead Transport Specialist AFTTR TTL Tawia Addo-Ashong Sr Transport Specialist SASDT Engineering Sylvester Kofi Awanyo Sr Procurement Specialist EAPCOProcurement Bayo Awosemusi Lead Procurement Specialist AFTPCProcurement Arun Banerjee Consultant SASDI M&E Charity Boafo-Portuphy Program Assistant AFCW1Prog. Support Charles K. Boakye Sr Municipal Engineer. AFTU2 Engineering Nina Chee Sr Environmental Specialist AFTEN Environment Ibou Diouf Sr Transport. Specialist AFTTR Trans. Econ. Antoine V. Lema Environmental Consultant AFTTR Safeguards Anthony Mensa-Bonsu Procurement Consultant AFTPCProcurement Godwin M. Kofi Opoku Consultant AFTTR Engineering Kavita Sethi Sr Transport. Econ. AFTTR Economics Siele Silue Sr Transport. Spec. AFTTR Economics Frederick Yankey Sr Financial Management SpecialistAFTFM Fin. Mgmt. Robert De-Graft Hanson Financial Management Specialist AFTFMFin. Mgmt. John K. Richardson Transport Specialist AFTTR Engineering Ntombie Z. Siwale Senior Program Assistant AFTTRProg. Support Salli Wondergem Program Assistant AFCW1Prog. Support Gifty Sarfo-Mensah Program Assistant AFCW1Prog. Support

36

(b) Staff Time and Cost Staff Time and Cost (Bank Budget Only)

Stage of Project Cycle No. of staff weeks USD Thousands (including

travel and consultant costs)Lending

FY99 60.92 FY00 41 239.08 FY01 54 184.68 FY02 17 34.55 FY03 0.00 FY04 0.00 FY05 0.00 FY06 0.00 FY07 0.00 FY08 0.00

Total: 112 519.23 Supervision/ICR

FY99 10.55 FY00 1 1.73 FY01 0.00 FY02 12 75.40 FY03 58 131.01 FY04 41 171.25 FY05 35 180.05 FY06 47 216.73 FY07 24 153.72 FY08 24 131.02

Total: 242 1071.46

37

Annex 5. Summary of Borrower’s ICR 1. The objective of RSDP was to achieve sustainable improvements in the supply and performance of roads and road transport services in a regionally equitable manner. Its sustainability agenda involved physical, financial as well as environmental aspects which were closely related to the success of institutional reforms and strengthening. The project was declared effective on the 15th of January 2002 and jointly financed by 14 development partners with an IDA credit component of SDR 175,300,000. As at the end of 2007, the GOG contributed an amount of US$ 977.78 Million. 2. About ninety-eight percent (98 percent) of the IDA credit component was allocated to three implementing agencies to support civil works covering maintenance, rehabilitation and reconstruction, traffic management and road safety, and institutional strengthening. A satisfactory level of achievement was recorded in the key area of civil works and institutional strengthening and capacity building. 3. Overall road maintenance achievement in the sector was quite commendable. Out of a total of 22,350 km that received periodic maintenance, about 2,670km (12 percent) represented the IDA component of that maintenance activity. The physical achievement in terms of major rehabilitation and re-construction works was about 800 km of which 200 km (25 percent) was due to IDA intervention. In all, a total of US$184.23 million was released from the IDA Credit Component for these maintenance activities. 4. On traffic management and safety, the development of the technical and institutional capacities of the National Road Safety Commission (NRSC) and Driver and Vehicle Licensing Authority (DVLA) resulted in some gains in accident reduction. Moreover, specialized units in the road agencies ensured effective integration and implementation of environmental, social, occupational health and safety, malaria and HIV/AIDS issues during project implementation. 5. Several policy and reform studies were undertaken with funding from the IDA singularly or jointly with other development partners and recommendations from these studies are being implemented through action plans prepared by MOT and its Agencies. Some specific recommendations made and action taken included the preparation of three policy documents that dealt with Tolling of Roads, Axle Load Control and the Fuel Levy. In the long term, capacity to undertake PPP projects is being developed through the initiative of the World Bank via PPIAF. In addition, capacity developed under the RSDP sustained the sector program through the preparation of the Urban Transport Project, which is currently being implemented under the Transport Sector Development Programme. For the first time in the history of Ghana, a National Transport Policy Study was undertaken with support from the World Bank and a draft White Paper on the Policy has been prepared and will be released by the government soon. 6. In terms of human resources development, the establishment of a Post-Graduate Training in Highway Engineering and Transportation at the Kwame Nkrumah University

38

of Science and Technology (KNUST) in Kumasi, is intended to localise the post-graduate training of Engineers and to give opportunity to the private sector to improve on their delivery capacity. This will complement the overseas and in-country training regimes, to ensure the development of a sustainable human resource capacity for the efficient management of the road infrastructure. Meanwhile, the goal is to build a self-sustaining centre of excellence that has international participants and recognition. While, further assistance will be required in subsequent IDA interventions to sustain the gains, there should also be a policy directive to encourage the post-graduate training of engineers locally. 7. Opportunities were given to senior, middle and junior staff under the program for training. The junior staffs were trained to improve their skills and knowledge which brought about attitudinal change in their work. For the middle level personnel, training was aimed at improving administration and management support to the senior staff and the focus was in the area of procurement, negotiation skills, contract management, and monitoring and evaluation. The senior staff was exposed through the training in planning, programming, budgeting, policy formulation and asset management. On the whole, a total of 2,215 members of the various categories of senior, middle and junior level staffs were trained. 8. Other significant Monitoring and Evaluation studies such as the Baseline and Impact Monitoring Study was undertaken to test the Programme’s fundamental objective of poverty reduction and economic growth. Findings indicate improvements in accessibility, mobility, welfare and the attainment of Millennium Development Goals (MDGs) indices measured during project implementation, attested to the fact that the road investments have direct correlation to poverty reduction and economic development. In relative terms, road investment made under the RSDP brought about reductions in transport cost to major markets and health facilities, increases in average monthly incomes and expenditures of farmers by a minimum of 10 percent, more than five times reduction in vehicle waiting times (rural and urban), increase in major farm produce prices by a minimum of 50 percent and an increase of 42 percent average contact of farmers to extension services, among others. 9. The project sought to achieve a road condition mix of 59 percent Good, 27 percent Fair and 14 percent Poor but could only undertake the following:

Description Planned (km)

Achievement (km)

Routine Maintenance 34,527 29,116 Periodic Maintenance 5,428 4,006 Rehabilitation 264 133

10. On the basis of the network size of 28,630 km in 2002, satisfactory outcomes were realized for the routine and periodic maintenance activities, representing 84 percent and 74 percent respectively of planned activities. A marginally satisfactory outcome of 51 percent was achieved for its major rehabilitation, reconstruction and major upgrading activities. Due to the variation in the level of achievement for activities, an overall road

39

condition mix of 39 percent Good, 29 percent Fair, and 32 percent Poor. These figures represent an improvement from the initial condition mix of 27 percent Good, 17 percent Fair and 56 percent Poor. Meanwhile, it is also important to note that this achievement has been determined based on the increase of the network size from 48,630km in 2002 to a total of 62,954km in 2007. 11. Economic evaluations undertaken with recent traffic data and construction cost figures show the project roads to be economically feasible for the proposed improvements. The economic rates of return (ERRs) and the net present values (NPVs) obtained for the roads indicate that the investment costs achieved significant benefits. For example, improvements of the trunk roads, recorded ERRs of between 24 percent and 167 percent. The differences in the corresponding net present values are also significant. The same applies to the selected urban roads, recording ERRs of between 50 percent and 110 percent. Additionally, the feeder roads show ERRs of between 29 percent and 420 percent. 12. The implementation of the RSDP has brought with it lessons for future implementation of transport programs in the form of challenges. Though, efforts were made to address some of the issues, others must be seen as challenges requiring the needed attention so as to impact positively on subsequent programmes:

• Inadequate design and short period for design review; • Contractors’ workload and weakness in the classification system; • Selection of the least cost tender without adequate consideration of technical

competence and engineer’s estimate; • Under-cutting in pricing in an effort to win a job under all circumstances also

undermined open competitive tendering; • Inadequate staff and logistics for field supervision affected monitoring and

supervision responsibilities; and • Certification of works for payment was identified as a major source of delay as a

process which should be completed within 3 months took 5 months to complete. 13. On the whole, the project achieved most of its relevant development objectives, which was to stimulate growth and contribute to poverty reduction through improved road infrastructure. The project also achieved satisfactory development results. Although, implementation encountered some challenges, findings from studies undertaken provide the platform to ensure better implementation of future projects. Road maintenance planning and funding is expected to be more sustainable. Implementation of maintenance programmes will benefit from improved skills and knowledge as well as general monitoring and supervision of road projects have improved. The MOT and its Agencies were resourced but these resources have to be sustained to enable them to effectively carry out their responsibilities and future assignments.

40

Annex 6. Comments of Partners 1. Comments received from the European Commission (EC) are: (i) Efficiency, effectiveness of the project and lessons to be drawn:

2. As Lead Development Partner in Ghana’s Transport Sector Group, the EC very much appreciated the quality of cooperation with the World Bank on sector dialogue, project monitoring, and preparation of the RSDP follow up (TSDP). The RSDP provided a coherent framework for the road sector development in Ghana. The objectives of DP’s interventions in Ghana’s transport sector converged in the road sector development program financed by a variety of donors including AfDB, AFD, DANIDA, DFID, KfW, EC, and the Bank. 3. Complimentarity of interventions on analytical work, policy preparation and studies was achieved through close coordination, including sharing of draft ToR’s and joint reviewing of each other’s draft reports - thus optimizing use of resources and improving the quality of outputs. 4. Monthly donor coordination meetings provided a good platform for sharing information, ideas and challenges and for continuous discussion and enhancement of policy dialogue. Joint statements were presented on behalf of DP’s at Annual Transport Sector Donor Conferences. 5. EC also welcomes the renewed presence of permanent Bank transport sector staff in the Ghana Country Office, increasing potential of synergies on top of the bi-annual appraisal missions. 6. Although, the road network size was fixed at the beginning of RSDP implementation, including an agreed growth rate for upcoming years, to meet the planned needs and foreseen available resources for maintenance, there was still a tendency to increase the size of the network with poor quality and un-maintained roads (i.e. tracks), whilst the resources for required maintenance of the increased network remained difficult to ensure. DP’s continued raising concerns of availability and access to maintenance resources for this ever increasing road network. 7. Policy documents on Axle load control were prepared and an action plan was put in place, but non approval of the traffic act/regulation remains an obstacle for the effectiveness of axle load control in Ghana. It is not clear if the RSDP target: "compliance with axle load limitation increased by 20 percent" has been achieved. (ii) Feedback regarding the document itself:

8. Preparation, appraisal, and monitoring meetings of World Bank for this project were in close coordination with other Development Partners in the Transport Sector Group. The European Commission contribution to transport integration, public finance

41

management and policy and planning capacity building in Ghana would deserve to be explicitly mentioned. (iii) The way forward:

9. As a major achievement under RSDP, a comprehensive National Transport Policy (NTP), with direct links to national development priorities, poverty alleviation and the attainment of middle income status was prepared. It was then adopted by Cabinet in September 2008. The NTP should form the basis of all strategic planning in the Transport Sector in the future. The more practical applications of the policy statements and strategies in the NTP have been formulated in the TSDP. As the successor to the RSDP, it sets out a program of development activities for Ghana’s transport sector for 2008-2012. Looking at synergies in program development and implementation with the World Bank and other DPs, the EC will support the TSDP through a road project in the Western Region and preparing the feasibility of the western corridor infrastructure. Additional support to other transport modes will also be sought via an Agreement to be concluded with World Bank.

42

Annex 7. List of Supporting Documents

1. Project Appraisal Document for the Road Sector Development Project, World Bank ; Report No : 22233-GH, July, 2001.

2. Country Assistance Strategy, World Bank Report No: 20185-GH, March 2000 3. Road Sector Development Programme (2002 – 2008), Implementation

Completion Report, Ministry of Transportation 4. RSDP Implementation Review Mission, Mid-Term Review, April 2005 5. Price Water House Coopers, Ghana Roads Concessionary Study Report (Draft

Final), January 2006.

6. Republic of Ghana and IDA, Development Credit Agreement, June 2001.

7. Global Procurement Consultants Ltd, Independent Procurement Review (IPR)-Road Sector Development Project (Credit No. 3554GH), April 2005.

8. Road Traffic Bill, The Road Traffic Act, 2003.

9. RPDCU-MRT Finance, Interbank Exchange Rates (July 1985-Date) Cedis/Others, December 2003

10. MoT, Strategic Plan (2000-2004), May 2000.

11. MoT, Revised Axle Load Control Policy and Action Plan, April 2005.

12. Ministry of Roads and Transport, Road Sub-Sector Development Program (RSDP)(2001-2003), June 2001.

13. Municipal Collaborative Ltd, Economic Analysis and Impact Assessment for the preparation of Implementation Completion Report for the Highway Sector Investment Project (RSDP)(Final Report), October 2002.

14. MoT and RSDP, The Role of Transport in Attaining Middle Income Status (Review Report), 2005/2006.

15. Municipal Development Collaborative Ltd, Economic Analysis and Impact Assessment for the Preparation of Implementation Completion Report for the Highway Sector Investment Program (Draft Final Report) Annexes, May 2002.

16. MoT and RSDP, The Impact of Road Programme on Poverty Reduction (Review Report), 2004.

17. MoT and RSDP, Mid-Term Review, April 2005.

18. Review of Standard Specifications for Road and Bridge Works, Final Draft, September 2006.

19. RSDP Completion Report, Driver and Vehicle Licensing Authority, 2007.

43

20. RSDP Completion Report, Ghana Highway Authority, 2007.

21. RSDP Completion Report, Department of Feeder Roads, 2007.

22. RSDP Completion Report, Department of Urban Roads, 2007.

23. RSDP Completion Report, National Road Safety Commission, 2007.

24. Baseline and Monitoring of Impact of the RSDP on Poverty Reduction,Final Report, Vision Consult Limited, 2008.

25. Report on Training Programmes funded under the RSDP, National Road Safety Commission, 2008.

26. Urban Transport Planning and Traffic Management Report for the Greater Accra Metropolitan Area (GAMA), Sekondi-Takoradi, Cape Coast and Koforidua, Draft Final Report, DHV, 2005.

27. Institutional Study of the Transport Sector, Draft Final Report, WSP International in association with Crown Agents, UK., 2006.

28. Evaluation of the Management and Financing Arrangements for Road Maintenance, MoT and DANIDA, 2003.

29. Road and Transportation Engineering (RTEP) Postgraduate Training Program Report, University of Birmingham, 2008.

REG

ION

UPPER WESTREGION

REGION

BRONG-AHAFOREGION

ASHANTI REGION

WESTERNREGION

CENTRALREGION

EASTERN

REGION

VO

LTA

EASTUPPER

NORTHERN

REG

ION

GREATERACCRA

IR11

IR11

IR11

IR11IR10

IR10

IR11

IR11

IR11

IR11

IR4

IR4

IR4

IR4

IR4

IR4

IR9IR9

IR9IR9

IR7

IR7

IR7IR7

IR4

IR5IR5

IR8

IR8

IR8

IR8

IR6

IR6

IR6

IR2

IR1IR2

IR2

IR2

IR1IR1

IR3

IR3

IR3

IR3

IR3

IR3

IR3

IR2

IR3IR3

IR7

IR7IR7

IR7

IR5

IR8

IR9

IR9

IR10

N13

N10

N10 N11

N10

N11N2

N2

N2

N14

N14

N2

N2

N2

N2

N9N10

N7

N7

N12

N12

N12

N12

N12

N12

N12

N12

N12

N1

N1

N1

N10

N8

N8

N10

N10

N10

N10

N10

N10

N10

N10

N6

N6

N6

N8

N1

N1

N1

N6

N1

N4

N4

N4

N6

N4 N3 N3

N6

N2

N5

N2

N1N1

N1

N2

N2

N2

N2

N2

N10

N10

N5

N6N6

N6

N1

N12

N12

N12

N18

N18

N13

N13N13

N16

02

0201

12

01

02

03

04

05

08

0706

05

06

04 05

02

03

10

07 07

11

01

10

09

01

08

07

05

06

04

01 01

01

02

03

02

04

03

04

02

01

03

04

05

06

06

07

08

09

01

0109

10

10

11

02

1001

11

12

01

09

02

03

02

11

10

03

12

01

0201

13

09 01

06

09

08

02

01

01

08

01

01

02

03

01

02

03

0103

07 06

01

0101

03

01

01

02

03

02

05

05

03

02

01

02

01

02

05

01

01

02

03

05

02

06

07

06

05

03

0102

03

02

06

02

07

0809

05

05

03

02

0201

01

01

04

04

04

04

04

04

DenuAflao

Keta

Anyako

AnyanuiAda

Sogakofe

Adidome

Wute

AkatsiKoforidua

TemaPrampram

Akplabanya

Battor

ACCRABortianor

Senya Bereku

AmasamanNsawam

DodowaAdaisoAsamankese

Kwanyaku

WinnebaApam

Swedru

Ajumaku

Esikuma

KpanduGolokuati

Kpedze Shia

HoKpetoe

Abutia-Kloe

BosoDominase

Akoroso

AkraSaltpond

Dunkwa

Cape CoastElmina

AbremHeman

Tumfokuro

Foso

Twifo PrasoSamreboe

Elubo

Half AssiniJewi Whorf

Axim AgonaJunction

Sekondi-TakoradiTakoradi

Daboasi

TarkwaBandae

Ataase

AsankranguaaEnchi

HuitimboInsuBogoso

Agyempama

BuakaBenchema

Krokosue Juabeso

BodiDadeeso

Amoya

AkwantonbraDwokwaa

Jabo

DiasoSefwiBekwai

Sefwi AnhwiasoBibiani

MansoNkwanta

NyinahinNkawie

MankransoKumasi

Kuntanase

Ejisu

KonongoJuaso

Bekwai

Obuasi

Oda

KadeKibi

Abirem

Akoasi Asesewa

Odumasi KroboSomanya

Senchi

Akropong

OterkpoluSekasua

Begoro

Mpraeso

Kwahu Tafo

Odonkawkrom

Anfoeta

Effiduase

Agona

Mampong

Ofinso

Abofoo

Tepa

Bekyem

Teekyere

Sunyani

KenyasiNo.1

Goaso

Shi

Adwumadiem

YamatwaSiekabenkuram

Kwadwonkromkurom

Kwakwanya

Dormaa-AhenkroAkontaanim

Kotuo Namasua

New Drobo

Wenchi

Techiman

TuobodumNkoranza

EjuraHiawoanwu

Atebubu

Abease

Yeji

Kwame DansoBaantama

Kwadwokurom Kete-Krachi

DambaiBuafri

Ohiamankyene

Zongo-Markyeri

Nkwanta

Jombo

Nakpayili

BimbilaWoribogu

NakpaliJuo

YendiSambu

ZabzuguSabari

Tijo

GushieguKaraga

Saboba

YawguWenchiki

Cherepon

Gambaga

Nakpanduri

Gbangdaa

Bawku

MogonoriKulungugu

KamsorioZebilla

BinabaDatokoBolgatanga

Tongo

Zuarungu

BongoNavrongoPaga

Naga

Fumbisi

Sandema

PinaTumuGwallu

Jeffisi

Hamale Gbal

LawraJirapa

Sabuli

Nadawli

Wa

Tanina BulengaWechiau

Dorimon

Sawla

Chache

Bole

Larabanga

DamongoSorri

Busunu

Fufulsu

Mpana

Mankpan

Gbulumpe

TamaleNyankpala

Tolon

SaveluguNawuniYepalsi

Janga

Nasia

Walewale

Diari

Hian

Tuna

Seripe

Teselima

New Longoro

Chibrungo

Kintampo

Jema

Ateso

New-Debiso

Dunkwa

Atobiase

Asaman

New Adubiase

Bodwesango

AkokoasoAjuafo

Ntronan

Amua

AduamoaObo

Hohoe

BaagloKute

Jasikan

Kadjebi

Ahamasu

Dodo

Asukawkaw

Brewaniase

Kpandae

Makongo

KimabuiSalaga

Wangasi-Turu

Gbung

Barekese

Awaaso

AdansiAkrofuom

AkimSwedru

Esaaman

Ayiem

AkwidaaPrince´sTown

Eikwe

Alenda

Apataim

Prestea HuniValley

Nsuta

Bui

Nsawkaw

Dwokwa

Achiasi

Edubia

Obogu

Agogo

Kayoro

Mankarigu

Gambia No.2

Accra

Suhum

Berekum

G H A N A

ROAD SECTOR DEVELOPMENT PROGRAMIBRD

31121

JUN

E 2001

1000 50 150

KILOMETERS

NATIONAL CAPITAL

REGIONAL HEADQUARTERS

DISTRICT AND SUB-DISTRICT HEADQUARTERS

OTHER SELECTED TOWNS

REGION BOUNDARIES

INTERNATIONAL BOUNDARIES

NATIONAL ROADS

INTER-REGIONAL ROADS

REGIONAL ROADS

ROAD SECTION IDENTIFICATION

RAILROADS

PORTS

IR10

N13

07

This map was produced by theMap Design Unit of The World Bank.The boundaries, colors,denominationsand any other information shown onthis map do not imply, on the part ofThe World Bank Group, any judgmenton the legal status of any territory,orany endorsement or acceptance ofsuch boundaries.

B U R K I N A F A S O

CÔTED´IVOIRE T O G O

B E N I N

GUINEA

LIBERIA

C Ô T ED ' I V O I R E

GHANA

TOG

O

BENIN

BURKINA FASO

NIGERM A L I

MAURITANIA

NIG

ERIA

G u l f o f G u i n e a

Ank

obra

Tano

Ofin

Pra

Birim

Afram

Obosum

Pru

Sene

Black Volta

Daka Oti

White Volta

Kulpaw

n

Felin

Sisili

Red Volta

White

Volta

Dayi

Lake Volta

G u l f o f G u i n e a

8°

7°

6°

5°

1°0°1°2°3°

5°

6°

7°

8°

9°

10°

11°

3° 2° 0° 1°

11°

10°

9°

1°

Area of map