Document of

The World Bank

FOR OMCLAL USE ONLY

MICROFICH' COPY

Report No.:P- 5815 GH Type: (PM)Title: ENVIRONMENTAL RESOURCEAuthor: HILL, IANExt.:34566 Room:J5 137 Dept.:AF4AG

MEMORANDUM AND RECOMMEDATION

OF THE

PRESIDENT OF THE

INTE1RNTIONAL DEVELOPMN ASSOCIATION

TO THE

EXECUTIVE DIRECTORS

ON A

PROPOSED CREDIT

IN THE AMOUNT EQUIVALENT TO SDR 12.6 MILLION

TO

THE REPUBLIC OF GHANA

FOR AN

ENVRONMENTAL RESOURCE NANAGEUENT PROJECT

SEPTEMBER 16, 1992

This document has a restricted distnrbution and may be sed by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CURRENCY EQUIVALENM

Currency Unit = Cedi (C)US$1.00 = C395C1,OO = US$2.54

WEIGHTS AND MEASURES

1 metric ton (m ton) = 2,205 pounds (b)I hectare (ha) = 2.47 acres (ac)1 kilometer (kcm) = 0.62 miles (mi)I meter (m) = 3.28 feet(ff)

ABBREVIATIONS

DANIDA Danish International Development AgencyEAP Environmental Action PlanEPC Environmental Protection CouncilEPC/TS Technical Secretariat of the Environmental Protection CouncilGEF Global Environment FacilityGET Global Environment Trust FundNGO Non-Governmena OrganizationODA Overseas Development Administration, United KingdomPNDC Provisional National Defense CouncilRSAU Remote Sensing Applications Unit

GOVERNMET FSCAL YEAR

January 1 - December 31

FOR OMCLAL USE ONLY

REPUBLIC OF GHANA

ENVIRONMENTAL RESOURCE MANAGEMENT PROJECT

CRED1T AND PROJECT SUMMARY

Borrower: The Republic of Ghana

Beneficiaries: Ministries of Local Government, Lands and NaturalResources, and Agriculture

Credit Amount: SDR 12.6 million (US$18.1 million equivalent)

Terms: Standard, with 40 years maturity

Financing Plan:Foreign Local Tot............... (US$ millions).

IDA 14.1 4.0 18.1GEr 3.1 4.1 7.2ODA (UK) 0.9 0.9DANIDA 3.0 1.3 4.3Government of Ghana _1 - 5.4 5.4

Total 21.1 14.8 35.9

[I Includes Duties and Taxes of US$1.7 million

Economic Rate of Return: Not applicable

Staff Appraisal Report: No. 10691-OH

IBRD No. 23827IBRD No. 23746

T l1s documenet bas a ronrked distribudoo and may be used by redpio"t oJy in the pWrounmace ofttbe oduit de; Its condetu may mt otoerwie be diosed widbou WVodd Bank authdwatkdo j

MEMORANDUM AND RECOMMENDATION OF THE PRESIENTOF THE INTERNATIONAL DEVELOPMENT ASSOCIATION

TO TE EXECUTIVE DIRECTORSON A PROPOSED CREDIT TO THE REPUBLIC OF GHANA

FOR AN ENVIRONMENTAL RESOURCE MANAGEMENT PROJECT

1. I submit for your approval the following report and recommendation on a proposeddevelopment credit to the Republic of Ghana for SDR 12.6 million, the equivalent of US$18.1million, on standard IDA terms with a maturity of 40 years to help finance an EnvironmentalResource Management Project. Additional grant financing would be provided by the GlobalEnvironmental Trust Fund (GET) and the Governments of Denmark and the United Kingdom.The Vice President, Africa Region, has approved the GEP component of the project, subjectto the Board's approval of the IDA-financed project.

2. BagkgrQ1mv. A growing concern for environmental issues led the Government ofGhana to initiate the preparation of a National Environmental Policy Statement and a nationalEnviromental Action Plan (EAP). In formulating the plan, the Environmental ProtectionCouncil (EPC), a Government agency established in 1974, secured the active collaboration ofa wide range of individuals and institutions in Ghana and the donor community, including theWorld Bank. In the process, EPC generated widespread awareness of the importance of theissues involved and a consensus about the need for effective action. The EAP has beencompleted and has been approved by the Committee of PNDC Secretaries. The majorenvironmentat problems identified in the EAP include soil degradation and soil erosion,deforestation and forest degradation, and degradation of the natural and built environment inthe coastal zone. In addition, problems associated with industrial and mining activities andrapid urbanization, notably water and air pollution, are becoming increasingly serious. Thestrategy for addressing these environmental problems is based on implementation of programsby sectoral agencies, with EPC having responsibility for environmental policy formulation,monitoring and coordination.

3. h Object bivesim. The primary objective of the project is to strengthen the capacityof both government and people to manage environmental resources. The project thereforefocuses on improving resource management capability through reorganizing and strengtheningthe institutions involved in environmental resource management, in particular theEnvironmental Protection Council and its Technical Secretariat (EPCT). The project wouldalso aim to develop environmental management skills in sectoral and local govermentagencies through staff training, leading to the establishment of effective inter-sectoralnetworks dealing with environmental issues. The development of the management systemwould be supported by the provision of an improved environmental information system inorder to provide a better understanding of environmental relationships, and early warning ofenvironmental pollution or degradation, coupled with public awareness campaigns. Otherproject objectives are to assist the users of environmental resources to invest in themaintenace of environmental assets through adoption of improved practices for thesustainable use of those resources. In particular the project would support the introduction ofimproved land management practices through community involvement in the planning andimplementation of measures to minimize land degradation. Specific attention would be paidto the fragile ecosystems in the coastal wetlands through the recognition of five sites under the

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Convention on Wetlands of International Importance Especially as Waterfowl Habitat (theRamsar Convention), and tbe establishment of a system for their management and futuredevelopment.

4. prject cripion. The project is designed to support the implementation of theEAP based on: (i) the inter-sectoral nature of many environmental concerns; (ii) the fact thatmany areas of Government are to be decentralized to District Assemblies; (iii) the need toensure that communities are involved in decisions about the use of environmental resources;and (iv) the fact that significant portions of the EAP are to be implemented through plannedor on-going sector-specific projects supported by IDA or other external aid agencies,particularly in the forestry, urban, industrial and energy sub-sectors. The project would usecapabilities in existing agencies, including NMOs, rather than attempting to create capabilitieswithin a central agency with respons;bility for all environmental matters. Progress withpolicy, plannr;g, legislative and institutional actions related to land resource management,forestry and wildlife, water management, marine and coastal ecosystems, human settlements,and pollution control wIll be monitored.

5. The project would be implemented over five years and would include three maincomponents: (1) Develmen of an Enviromental Resource Management System through:(i) Institutional support to the Technical Secretariat of EPC (EPCITS) to enable the Councilto undertake its coordinating, monitoring and regulatory functions, at central and regionallevels; (ii) Human Resource Development, including post-graduate education and trainingprograms in environmental management, for staff of EPCM and sectoral agencies at centraland district levels; (iii) Environmental Education based on public awareness campaigns; and(iv) Development of a national environmental information and monitoring system, providinginformation on environmental quality, topography, land use, climate, land suitability and landtenure. (2) Land Resources Management would support a pilot project for development ofmethodologies to minimize land degradation through the planning and sustainable mangementof land by communities and farmers. The pilot project would train rural sociologists andtechnical staff within MOA and NGOs in: methods of raising community awareness of landdegradation; simple diagnostic surveys to determine degradation problems; identification oftechnical solutions that are acceptable to communities; and the lay-out of necessary works inthe field. A land management fund would be used to provide incentives for farmers to adoptimproved land management practices in the short term, until the long-term benefits becomeapparent. One objective of the pilot program would be to finalize criteria for use of the fundand the mechanisms for its management. (3) Coastal Wetands MU would providefor the demarcation and management of five coastal wetland sites, the Muni, Sakumo, DensuDelta, Songor, and Anlo/Keta lagoons, that are recognized as sites of international importanceas habitat for migratory waterfowl. Inventory and monitoring of the ecological and socio-economic conditions of the sites would be coupled with public education programs and studiesto identify forms of development that would be compatible with preserving the ecologicalintegrity of the sites. Extal funding for this component would be provided by the GET.

6. The total cost of ths project is estimated at US$35.9 million, with a foreign exchangecomponent of US$21.1 million (59 percent of total costs). About 60 percent of total projectcosts would be for development of the Environmental Resource Management System, about18 percent for the pilot Land and Water Management program, and about 22 percent for theCoastal Wetlands Management program. The IDA credit would be for US$18.1 million, or50 percent of project costs. GET grant funds for the Coastal Wetlands Management program

-3 -

would amount to US$7.2 million, or 20 percent of project costs. Grant funds for technicalassistance and training would be provided by the Overseas Development Administration(ODA) of the United Kingdom and the Danish International Development Agency (DANIDA),and the Government would contribute 10 percent of project costs, excluding duties and taxes.The breakdown of costs and finncing is shown in Schedule A. The proposed procurementarrangements and the disbursement schedule are given in Schedule B. A timetable of keyproject processing events and the status of Bank Group operations are given in Schedules Cand D respectively. Maps are also attached. The Staff Appraisal Report No. 10691-GH,dated September 16, 1992, is being distributed separately.

7. Ptojst Mplemantation. The inter-sectoral nature of many environmental concernsand the diverse information required for effective management mean, inevitably, that amumber of agencies have to be involved. These include the EPC/TS, agencies in theMinistries of Local Government, Lands and Natural Resources, Agriculture, and Transportand Communications, and research and university agencies. However, in each of theagencies, project funding would be used to support clearly defined activities that lie within thepresent mandate of each agency. To simplify project management arrangements, projectactivities would be grouped according to project objectives or outputs. 1ach group ofactivities would be overseen by a Project Operations Committee, under the overall supervisionof a Project Coordination Committee.

8. EPC/m has a key role to play in project implementation and the coordination ofproject activities. A Senior Program Officer would be a member of each of the ProjectCommittees to assist with the coordination of the activities overseen by the respectivecommittees and facilitate the disbursement of project funds to implementing agencies.EPC/TS would be responsible for a single Special Account and for disbursement applicationsto IDA. In order to formalize project-financed linkages, Memoranda of Understanding wouldbe drawn up between EPCiTS and the other implementing agencies that would specify theschedules and costs of provision of services and products by each agency and the paymentsand equipment to be provided by EPCITS for these services and products. Projectimplementation arrangements would be further strengthened by the agreed strategy forprovision of technical assistance, based on functional linkages and the creation of institutionallinks.

9. Project Sustainability. The project has a strong human resource development focus,that would increase the capabilities of key agencies to plan, implement and monitor the use ofenvironmental resources in a sustainable manner. The incremental recurrent costs due to theproject would amount to US$2.3 million ia the final year of the project. Government'scontribution to these costs would increase from US$0.4 million in the first year of the projectto US$1.5 million in the fifth year, that is, from about 50 percent to about 70 percent ofincremental recurrent costs. The development of an environmental resource managementsystem will take time, so the project should be seen as the first phase in a longer-terminstitutional development program.

10. Lessons fro evious IDA QDgertions. lere has been no IDA lending in Ghanaspecifically for environmental operations, but much of previous IDA lending for sectoralprojects has had an impact on the environment through its effect on agriculture, forestry,minig, industry, and urban development. Experience with these lending operations showsthe need: (i) to involve communities in the planning and implementation of sustnable

-4-

resource use; CiH) to provide a focus for the management of environmentally related matters;(ii) to agree on procedures to achieve effective coordination; (iv) to improve environmentalmanagement sdills at district as well as central levels; (v) to provide training and support toimplementing agencies for procurement and disbursement; and (vi) to sustain stable macro-economic conditions. This is consistent with conclusions drawn from world-wide experiencethat is presented in the Progress Report for Fiscal 1991 on the World Bank and theEnvironment.

11. Rationale for IDA Involvement. The proposed project is consistent with the Bankstrategy to assist with the implementation of the EAP by developing the institutional capabilityfor policy making and coordination, and by providing support for the implementation ofenvironmental protection pregrams on a sectoral basis. Tbis would protect the environment,improve the sustainability of agriculture and reduce the adverse environmental effects of urbanand industrial development. By assisting to put in place the necessary mechanisms forenvironmental policy formulation, planning and monitoring, it would complement on-going orplanned activities financed by IDA and other donors in: agriculture (adjustment lending andextension, research and livestock projects), forestry, water, urban development, mining,energy, transport and education projects. It would also help to focus donor assistance foreavironmental concerns in an integrated manner, as evidenced by GEF participation in projectfinancing mad the willingness of both ODA and DANIDA to finance elements of the project.

12. Ageed Actions. During negotiations with Government the following assurances andagreements were obtainedi:

Conditions of Project Irfectiveness. (i) The Deputy Directors of EPC/TS and the ProjectFinancial Controller would be appointed; (ii) the agency contracting to provide specifiedequipment and services to the Survey Department would be identified and selected, followingIDA procedures; (iii) terms of reference and procedures for the operation of the RemoteSensing Applications Unit (RSAU) within the University of Ghana would be finalized and theHead of the Unit would be appointed; (iv) the Land and Water Management Unit would beestablished in the Ministry of Agriculture and the staff of the Unit would be appointed;(v) Government would establish an Environmental Resource Management Project Account andwould pay an initial amount of US$100,000 equivalent into the account; (vi) bilateralagreements between the Government of Ghana and the Governments of Denmark and theUnited Kingdom and the Global Environment Trust agreement would be effective.

Conditions of Disbursement. (i) Signature of the contract between the Survey Department andthe agency selected to provide the specified equipment and services for that component.

Other Assurances. (i) Government's incremental contributions would be provided for allproject activities in line with agreed operational plans. Government would also comply withthe audit, review and reporting requirements of IDA; Di) Memoranda of understanding wouldbe drawn up by March, 1993, between EPC/TS and other implementing agencies setting outschedules and costs for provision of agreed services or products by each agency; (iii) a humanresource development plan for EPC/TS would be prepared by January, 1994; (iv) the resutsof studies and investigations of development options financed through the project would bereviewed by the Project Operations Committee and IDA. The use of the Investment SupportFund for identified developments within the coastal wetlands would be managed under termsof reference agreed with IDA; (v) a communications strategy for public awareness programs

-5 -

would be prepared by EPC/rS by June 1993, and reviewed by IDA; (vi) criteria to monitorenviromuental quality and the location of sampling sites, acceptable to IDA, would beestablished by EPCITS by June 1993. Threshold values would be established by December1993 and reviewed annually; (vii) the Principal of the Survey School would be appointed on afull-time basis. Qualified staff of the Survey Depatment would be identified as instructors, tothe equivalent of two full-time staff, by June 1993; (viii) core staff of RSAU would beappointed by March 1993. Nomenclature and classification for land use mapping would beprepared and reviewed by IDA, by June 1994; (ix) formal boundary descriptions of the fivecoastl wetland sites would be completed by June 1, 1993, and the legal instrumentdesignating the boundaries of the Ramsar sites would be prepared, reviewed by IDA, andapproved by December 31, 1993; (x) the results of annual monitoring of ecological and socio-economic conditions in the coastal wetlands would be reviewed in April of each year, staringin 1994; (xi) the detailed design and management of the education and research center atSongor would be agreed by July 1995; and (xii) annual work program for all implementingagencies would be prepared by June of each year and reviewed with IDA.

13. Eviromnental Aspects. The primary objective of the project is to improve themanagement of environmental resources in Ghana and to introduce programs for theconservation or sustainable use of those resources. The project would, therefore, havebeneficial effects on the environment.

14. Pegc Obtive Categatrim. The primary objective of the project is to improve themanagement of environmental resources by Government at central and district levels, bycommunities and by individuals. Through the implementation of programs for moresustainable use of environmental resources by individuals and communities, the project wouldresult in long-term improvement in rural living standards and reduction in poverty.

15. Priect BenTfi. Ihe project would support Government's strategy for the sustainableuse of the environment as set out in the National Environmental Policy and would assist withthe implementation of important aspects of the Environmental Action Plan. It would,therefore, improve the management of environmental resources by both Government and thepeople. By improving the availability of information it would provide a better understandingof the environmental implications of courses of action, and early warning of environmentalpollution or degradation. The project would also promote the management of environmentalresources by communities in the coastal wetlands and elsewhere. Project benefits also includethe preservation of ecosystems in the coastal wetlands. Project-financed studies would lead tothe identification of development options that are compatible with maintaining the ecologicalintegrity of environmentally sensitive areas and provide insights into the environmentalimplications of planned development strategies at national, district and local levels.

16. Economic rate of return calculations for the project are not meaningfil as the maincomponents do not lend themselves to conventional rate of retnm analysis: many of thebenefits cannot be quantified and assumptions depend on whether the analysis is based on anational or global accounting stance. The pilot nature of the Land and Water Managementcomponent means that economic analysis is not appropriate.

17. Ri&. A slowing down of the pace of economic recovery that led to shortfalls inoperational funding would adversely affect the project, but Government's commitment toconservation and sustinable use of the environment is clearly expressed in the National

-6 -

Environmenta Policy. Another risk relates to the effectivene. of the environmentalmanagement system but the project ic designed to strengthen management processes. Thereare also risks related to the development of the environmental information system, but the keyrole played by users of te information in managing the program and the arrangements fortwinning implementing agencies with foreign agencies with International experience reducesthese risks. Risks are associated with the program of land and water management, as itinvolves Innovative approaches, but the pilot nature of the program minimizes these risks, asit allows for staff training and the development ox appropriate methodologies and theirapplication on a limited scale. Government has formally declared its intention to recognizethe five coastal vetland sites under the Ramsar Convention, but there is a risk of delay inissuing the legal instrment. However, project funds would be available to undertake thenecessary survey and demarcation of boundaries.

18. ,=MM%nAt&o. I am satisfied that the proposed credit would comply with theArticles of Agreement of the Association and recommend that the Executive Directorsapprove it.

Lewis T. PrestonPresident

At.tchments

Washington D.C.September 16, 1992

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Schedulg A

GHANA

ENVIRONMENTAL RESOURCE MANAGEMENT PROJECT

Estimated Costs and finandn Eln

ESTMATED COSMS

Component Fori Lo 9................. (Us$ million).

1. Development of Envionmental Resource

A. Environmental Managemeat Development- nitutional Support to EPC/S 3.1 2.2 5.3- Human Resource Development 1.4 0.4 1.8- Enironment Education 0.3 0.5 0.8

Sub-Total 4.8 3.1 7.9D. Envronmental hIormon System

Development- Envirmental Quality 1.4 0.6 2.0- Topograhic Bas ormation 3.8 0.6 4.4- Present Land Use 1.7 0.5 2.2- Land Owneip 0.4 0.2 0.6- Meteorological Information 0.6 0.1 0.7= Land Suitability 0.4 0.1 0.5

Sub-Total 8.3 2.1 10.42. Land and Water Managemnt 2.7 2.8 5.53. Coasal Wetlands Mangemt 2.2 4.0 6.2

Total Base Cost 18.0 12.0. 30.0

Physidca Contingencies 1.2 0.7 1.9Price Contingencies 1.9 2.1 4.0

TOTAL PROJECr COST 1/ 21., 14.8 35.9

FINANCING PLANForeign L oa.................. .(US$ milion).

IDA 14.1 4.0 18.1GET 3.1 4.1 7.2ODA (UK) 0.9 0.9DANIDA 3.0 1.3 4.3Govenmet of Ghanal 5.4 5.4

TOTAL 21.1 14.8 35.9

11 nfcludig duties and taxes of US$1.7 million

Schdue 8PROCUREME MEIHOD AND DISBURSENT Page 1 of 2

A. Amounts and Methods of Procurernzat

Emggmw cWtowly ~Li LoI outhTotaDMk add"I 0v

IWQE ................................. (USS M illion).TOWal 1.0 4.5 - - - S.SIDA 0.4 1.6 - - - 2.0GET 0.4 2.2 - - - 2.6GovenmUent 0.2 0.7 - - - O.S

Vd iclesTotal 2.0 - 0.3 - 0.1 2.4IDA 1.5 - 0.2 - - 1.7GET 0.3 - 0.1 - - 0.4Govrmt 0.2 - - - 0.1 0.3

Bauioment and MateiaTotal 3.2 0.5 0.5 - - 4.2IDA 2.2 0.2 0.3 - - 2.7GET 0.7 0.2 0.2 - - 1.1GovernmOet 0.3 0.1 - - - 0.4

Su=v ContmotTotal 4.3 - - - - 4.3IDA 4.1 - - - - 4.1Government 0.2 - 0.2

_=3Tou - - 1.7 3.1 4.8IDA - - 0.6 - - 0.6GET - - 1.1 - - 1.1Blateral - - - 3.1 - 3.1

Studies and InveaationsTOWal - - 2.4 - - 2.4IDA - 2.4 - - 2.4

Tmmp- and Pubio AwaemuTotal - - 1.2 1.5 - 2.7IDA - - 0.8 - - 0.8GET - - 0.4 - - 0.4Bilater - - - 1.5 - 1.S

Invesment Sumort and LandManemenmt Fund

Total - O.S 0.6 - 1.1IDA - - ---

GET - - 0.5 - - C.SBilatel - - - 0.6 - 0.6

Proiect Preamtion EailAvTotal - - 0.2 - - 0.2IDA - - 0.2 - - 0.2

.Incementam Rocurnet CostsToWl - - 4.7 - 3.6 8.3IDA - - 3.6 - - 3.6GET - - 1.1 - - 1.1Government - - - - 3.6 3.6

10.5 S.0 11.5 5.2 3.7 3S.9TOTALS

IDA 8.2 1.8 8.1 - - 18.1GET 1.4 2.4 3.4 - 7.2Bilateal . - - - 5.2 - 5.2Govenmenat 0.9 0.8 - - 3.7 S.4

=w mmin ,= = = a

-9 -

Schedule BPage 2 of 2

B. Summar Dishursement LSchgdu

Categorymount Allocated % To be Financed

..(USS m )..

Civil Works 1.7 2.4 100 70Vehicles, Equipment,

and Materials 3.9 1.3 100 90Survey Contract 3.8 100 90Technical Assistance 0.6 1.0 100 100Studies and Investigaions 2.2 100 100Trainig 0.7 0.3 100 100Investmetnt Support and Land

Management Fund 0.4 100 100Project Preparation Facility 0.2 100 100Incremental Recurrent Costs 3.3 0.9 70 to December 1995,

50 thereafterUnallocated 1.7 0.9

IQIAL 18.1 7.2

Et1St~ie DA and GET Disburseents

Fiscal Year FY93 FY94 FY95 FY96 FY97 FY98.................... (US$ millions).

IDA Annual 2.4 4.9 4.3 3.1 2.3 1.1Cumuladve 2.4 7.3 11.6 14.7 17.0 18.1

GET Annual 0.5 1.5 2.1 1.7 1.0 0.4Cumulative 0.5 2.0 4.1 5.8 6.8 7.2

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Schedule CPage I of 1

Mmetable of KeU Prolect Processing Events

Time Taken to Prepare: 20 months

Project prepared by: Government of Ghanawith IDA assistance 1/

First IDA Mission: June 1991

Appraisal Mission: March 1992

Negotiations: August 1992

Planned Date of Effectiveness: January 1993

List of Relevant PPARS and PCRs: None

i/ This project is based on the findings of a appraisal mission tat visited Ghaa inMarch 1992, comprising }. Hill (Mission Lader), Ms. C. Cook, Sociologist;C. Sow, Economist; K. Creighton, Conwltant Ecologist; J. Michael, ConsultantSurvey Specialist; and Y. Prevost (DANIDA Consultant Infonmation Specialist).P. Stromgaard, DANIDA, S. Jensen, DANIDA, P. Dobie, ODA, andMs. P. Stone, ODA, also paftcipaed in the mission

- 11 - Schedtule DPage 1 of 3

THE STATUS OP BANK 0OUP MANONS IN GHIANASTATMORNT OF BANK LOANS AND MA CUitS

w~ ~ ~ ~ ~~~~t4 .Aa ~ 1__2

, hat Tag 3com PinS.w le(k Dto Ufdlehume

10Oth".d40e,AwAwy&d4wd 1.72 919.04

Otew0 8JOhs.An Ra89 t. 0.00Ce. 1435 a ohm IoLv ea. 400 0.00,. 1573 8U cum Rcnus. bn.0 0.00A-030 6 Oh bazu. rpws* 2.9 0.00:

Ce. 1612 86 0m. Jnaael etr A4t 250 0.00Ct. 174438 Chun. zv 8u. tt4g 440 0.00

c. n 1s V SAC! i5.00 0.00A-=5 87 Ohm SA . 81.00 0.0

*.130 86 Ohm IXdsmA" $Wt. AdJust OA0 00

A02.U 8 Obam SAC I 1.00 0.00Cr.tSU-t 89 Ohl Pcel iSt.t A^4uL 640 0.00Ct. 200-1 s0 Chm SAC a 5.70 0.00COM a05 5 Oh.. SAC U 110.00 0.00Cf. 0S0-2 89 Oam SC! .30 0.00

T ~~~~~~~~~~~~~~~~516t56 _0.oo

Ct. 14 84 hm ScAd OU alMa 25.00 5.31C. U6 85 Ohm Aad DitUt RSab. 22.00 Cr. 104 86 Mo Ptu R u40 08ce. 79 a Ohm NoemO maw 0 0.36Ct. 178? Om *on. Ajst &a. a"" 10.80 0.03cr. 1t80 a Oh4a Agdeta Sbs bbb. 17.0 4.09Ct. 18t9 17 Ghn leauh & Dw. 15.0 L-26Cr. 14 89 Om Puba!.sspd TA 1040 .99Ce am a MM C#st RehabWIiO 4 39.25C5. Ian 88 Ohm TmapmIAIblhttu 0.00 5441Ce. 14 n8 Sb psto ayo 10.0 27Cr. 1t9 * $8 Ohm FAt SeblrAdj 10.0 2.06of. 1921 88 O. la" Setr RRe& 40.00 1.10

er. SW so au= T*Wudvmkatww n it-~~~1900 10.91Cr. 1W7s St " Po" VLe M_ugu 39.40 29.85c 196 89 Ghn Pttat4w onV. 3040 21.2C. 2059 J9 Ohm W "at tle 25.0 22L06Cr. 4 8 9 An Rl ?m .00 15.0tCe 0 90 hchm R P C 40.0 2902Cf .1 90 Oh. VRIA Per 20.00 .37Cf. * 90 Ohm x6mtwo SSae Adu. a 57.72C.2w7 90 #- Uthes 0.00 0.85CL 2180 91 Oblm Aid Dho0auift 164 174Cf. 2u 9t ohm Tonq*sd2bakrilta. 9m.0 f.2Cr.2 9aOmRt ith P& Plaol 27.00 24.62Cr. 91 a let om."Mom".9Ws is0 W1.Cr. 2256 * 91t Om P w taut 220.00 6.40Cr. mwi w 92 Ohm P*siw tavwmeaSqp 4.10 56C. 2247 91 Ohs. Kat Agde. RNh* 2.0 2.42Cr. WI 91 t hm C_Scmt Seodsyheda 14.70 1O0OCt 2918 a2 t COhm FIsa law UM. 1 10.0 853Ce. 319 V 92 hM Nadtu FedwI"d55.0 57.74CLe 34 92 TM Aldet &Seat4 800 66.1Cr. 34 V 92 mm N1 Aps. &VAL 50.40 31.C. 2S3 V 92 Oum Lit. ^ a am - 17.40 u.a

TOM'. 189.712 1444 801,f rw. aU4 #0 t6bn od m

TOTL m* hM by tmb an MA 346 21982O

Ad , a o.s TOTAL mdIwges 880.16

" XA.%9Wd vv.s -- tn

* SZCAL

- 12 - Schedule DPage 2 of 3

STATEMNT OF ]PC RIESTMMENS(As Of fme 30, 1992)

Fiscail Amoimt in USS mlonYear Borrower .. * Type of Business Loan Equity Total

1984 Ashantdl oId&Ids Minfig 55.0 - 55.0 S

Corp.1986 KtdasInB Oil ol- 4.5 4.S Y

ExPloration1988 Cadan lgosu Ming - 0.6 0.6

Rsours Ltd.1989 Caadl Bogosu Mining 0.4 0.4

Raiuroas U1989 Contnena Marchant Rankng - 0.9 0.9

Accaptances Ltd.1989 Wahoma S3tl Ltd. Sted Mtg. 3.2 - 3.2

1989 Canadian Rogosu MinIAg 47.5 0.5 48.0 3/

Reurm Er1990 Ashant Goldfields Mling 70.0 - 70.0 4t

Corp. II1990 Iduaprie Minig - 3.0 3.0

1991 Alugan (AEF) Aluminum 0.3 - 0.3

1991 PlasUtc Laminae (AEF) Plascs 0.6 - 0.61991 Hote vestments Tourim 4.2 - 4.2

(rGhana) Ltd.1991 Dimplteunn(AEF) Tourds 0.2 - 0.2

1991 Cadan ogow bMinnAg 0.8 0.4 1.2

Resourcs IV1991 Connenal Mechat t aning 3.0 0.0 3.0

,cetance It991 Ghanat Alumium - 0.4 0.4

199t Securties Dicount House - 0.2 0.2

Discount House199l Applah-Menksh (AEP) Soap Mfg. 0.9 - 0.9

1991t duaprlam I Mining 36.5 - 36.5 sr

1991 Packtitz (AEF) CardbdM. 0.6 - 0.6

1992 Hotelt IAvestMntg (swp) Toudm 1.3 - 1.3

1992 AAAnt Gold81da (swap) Mining 6.4 - 6.4

lavemmats approved but unsige as of Juno 30, 1992

Im EJura Farms Agbusa s 1.6 - 1.61992 Wahomo Stoo Ur Stee Mfg. 2.0 - 2.01992 Vims-Fr (AEF) Agdbusie 0.3 - 0.31992 Achimta Brewel Ber Mfg. 3.5 1.0 4.S1992 Polytox (AEP) Pltc lags 0.4 - OA1992 BMK-Prmewood (AEF) Pace lowd 1.0 - 1.01992 Combined Earms (AEF) A 0.4 - 0.4199 Atat QoldIlds (AMEP) Minin 165.0 - 165.0

ToTAL 17;3 -- 7

TOWtal s Commimen 230.S 109 2411A.Lec zpammnts. vancallatons and wdw-off 33.4 4.5 37.9Totdl Comitm Now Hold by IC 197.1 6.4 203S

Total Ud&bud 3.2

1 ImInds a US27J aui. a n2V Amh_wt Wa Uy wiUa.3 Imlkda USS29.0 .U1W. paelpaim4/ InoIu a USS3S.0 aiWl pStiopa&&SI hu a 1U5530.0 mUll" prstloipa.

-13 - Schedule DPage 3 of 3

GEIANA - IMPLEMWNTATION ISSUES

1. Wile Ghana's overall disbursemet performance coetinues to compare favorably with othercounties in the Region, disbursements oan investment lending have been declining since FY89. Anainaceased focus on impleenctation, omplemented with actions to address generic as well as project issues,resulted in a reversal of the trend in FY91. Key actions taken to improve perforance included a CountryImplementation Review in May 1991, which led to a breakthrough in the simplification of procurementprocedures and the approval process, and follow-on sector implementation reviews. The ResidentMission's supervision capacity was strengthened, and its portfolio monitorng activities increased. Intensivesupervision and md-term reviews were ud to redesign slow-moving projects in accordance with Bankpolicy. The mpding political changes in the country have, however, deflected attention fromimplementation issues, especially in procurement-related activities, resulting in a slowdown ofdisburs nts in FY92. Notwithstanding, discuions continue at both project and higher levels ofgovrnment to resolve the problems. Cument plans include a CIR next year. The staus of project whichare particularly slow-disbursing is discussed below.

2. Cocoa Rehabilitation (FY88). To address the administrative problems that had led to slowimplementation, prect administration has been tightened, clear working relationships betweenimplementing agencies have been established, and mechanisms have been put in place to monitor progress.However, difficulties with procurement produrs and cost increases in the roads component have causedconinued delays i implementation. Following a mid-term review in March 1992, action has been takento edesign the project and reallocate credit funds.

3. Mining Sector Rehabilitation (FY88). The SGMC rehabilitation component has been laggingsubstntially owing to slow decision maldng on joint ventuing and rehabilitation of the mines. Efforts arecontinuing to downsize SGMC and to activate the joint venturing of the mines. Furthermore, the urgencyfor divestiure action is being stressed to improve SGMC's operations.

4. F (FY89). Implementation problems included weak project management, shortage ofprofessional staff, and Govermnent uncertainty about the likely effectiveness of the technical assistanceprogram. Actions bave been taken to enhance staff training, seek approval for an increase in incentivepackaes, and restructre the technical assistance program. As a result of the nud-term review in January1992, implementation procedures have been simplified and action taken to realocate prceeds.

5. RumlFinrnce (FY89). Although disbursements improved in FY92, drawdown on the credit lineis still slower than expected owing to problems of high interest rates, high credit risk perception by bothlenders and borrowers, and significant delays by the project implementation unit. The June 1992 mid-termreview proposed several actions to accelerate disbursements including ways to eliminate delays in theprocessing of claims from participating financial institutions.

6. Water Sector Rehabilitation (FY90). There has been significant progress in resolving financialissues (tariff rates were increased in February 1992), and steps have been taken to address institutionalproblems. The key issue of shortage of qualified senior management staff, however, remains unresolved.Technica recomndauons have been submitted to the Provisional National Defence Council buta decisionis not expected until after the elections in November 1992. After a two-year delay, physicalimplPementation of the project is now on track and disbursements are expected to pick up at the end of theengineerg design stage in May 1993 when the rehabilitation process begins.

BURKINAAFASOO

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