World Bank Document · 2016. 8. 29. · The project was prepaped on the basis of a prm-appraisal...

Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 9823-GH

STAFF APPRAISAL REPORT

REPUBLIC OF GHANA

NATIONAL FEEDER ROADS REHABILITATION AND MAINTENANCE PROJECT

NOVEMBER 19, 1991

Infrastructure Operations DivisionWestern Africa DepartmentAfrica Region

This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contb ' Vt rW" vw 7 '' " Wit ^ W ' D II ,, I. f,X

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CURRENCY AND EQUIVALENT UNITS

Currency Unit Cedis CUSS1.0 a Cedis 375

1.0 Cedi * USS.0027

WEIGHTS AND MEASURES

1 meter (m) 3.28 feet (ft)1 hectare (hs) 2.47 acres

1 kilometer (km) m 0.62 mile (mi)1 metric ton (t) u 2,205 pounds Cib)

ABBREVIATIONS AND ACRONYMS

ADF - African Development Fund NTADS - Mediun Term AgriculturalADT - Average Daily Traffic Development StrategyAGSAP - AgriculturaL Sector MTC - Ministry of Transport and

AdJustment Proaram CommunicationsBHC - Bank for Housing and MTPU - Mechanical Training and

Construction Production UnitCRP - Cocoa Rehabilitation Project NFRDP - National Feeder RoadsCTC - Central Training Center Development ProgramDANIDA - Danish International NFRRMP - National Feeder Roads

Developnent Agency Rehabilitation andDFR - Department of Feeder Roads Maintenance ProjectDUR - Department of Urban Roads NGO - Non-Governmental OrganizationEPC - Enviromnental Protection OPEC - Organization of Petroleun

Council Exporting CountriesERP - Economic Recovery Program PANSCAD - Program of Actions to MitigateERR - Economic Rate of Return the Social Costs of AdjustmentGDP - Gross Domestic Product in DevelopmentGHA - Ghana Highway Authority PCR - Project CompLetion ReportGIMPA - Ghana Institute of Management PKU - Project Management Unit

and Public Administration PNDC - Provisional National DefenseGOG - Goverrnent of Ghana CouncilICB - International Competitive PPF - Project Preparation Facility

Bidding RRMP - Road Rehabilitation andIFAD - International Fund for Maintenance Program

Agricultural Development RTPU - Road Training and ProductionIBRD - International Bank for Unit

Reconstruction & Development SAR - Staff Appraisal ReportILO - International Labour SDR - Special Drawing Rights

Organization SIAN - Spot Inprovement andINT - Intermediate Means of Maintenance Units

Transport ShC - Single Man ContractorsLCB - Local Competitive Bidding SOE - Statement of ExpenditureLOI - Letter of Invitation TOR - Terms of ReferenceMA - Ministry of Agriculture TRP-1 - First Transport RehabilitationMFEP - Ministry of Finance and Project

Economic Planning TRP-2 - Second TransportMLG - Ministry of 'acal Goverrunent Rehabilitatirn ProjectMREMAT - Mobile Repair and UNDP - United Nations Development

Maintenance Units Progra_MPBS M Maintenance Performance and UNV - United Nations Volunteers

Budgeting System USAID - United States Agency forNRH - Ministry of Roads and International Development

Highways WFP - World Food Programme

FISCAL YEAR

January 1 - December 31

FOR OFFICIAL USE ONLY

REPUBLIC OF GHANA


STAFF APPRAISAL REPORT

Table of Contents

Page No:CREDIT AND PROJECT SUMMARY ......... ....................... i

I. INTRODUCTION . .................................... 1

II. BACKGROUND ....................................... 1

A. The Country and its Macroeconomic Setting .............. 1B. The Agricultural Sector ........... ............... 2C. The Transport Sector ............................ 3D. Government Decentralization Policy and Strategy . ...... ... 5E. Bank Group Assistance in Agriculture and Roads ... ....... 7

Ell. FEEDER ROAD CONSTRAINTS AND STRATEGY ............... 8

A. Feeder Road Organization. 8B. Institutional Capacity. 9C. District Routine Maintenance Organization .... ........... 11D. Feeder Road Planning and Selection ................... 12E. Design and Technology Choices ..................... 13F. Feeder Road Development Strategy ............. ..... 14

IV. THE PROJECT ................................... 16

A. Pro ect Objectives ......... ... 16B. Pro ect Description .............................. 16C. Pro ect Cost and Financing .. : ..................... 21D. Project Design and Implementation ...... ............. 24E. Status of Project Preparation ....... ................ 27F. Procurement ................................. 28G. Disbursements ................................. 30H. Accounting and Auditing ......... ................. 30I. Rcporting and Monitoring ........ ................. 31J. Environmental Assessment ........ ................ 31

V. ECONOMIC EVALUATION .................... 32

VI. AGREEMENTS AND RECOMMENDATION ..... ............. 35

The project was prepaped on the basis of a prm-appraisal mission in January/Fcbnary 1991 and an appraisal mission in uno /luly1991 by Moss. A. Nickesen (Mission Leader, Transpott Specialist), S. Demissie (Highway Engineer), J. Gaviria (TranspottSpecilist), K. Adarkwa (Transport Econonsti, Consultant), E. Connerley and IL Elison (Decentralization/Local GovemmentSpeciaIsts, Conultants) and S. McCormick (Environmental Specialist, Consultant). Mr. T. Pankqj (Principal TranspoatSpecialist) initiated the project and contributed the rural mobility comnponent. Mess. P. Taylor (Insitutional Specialist,Consultant) ad A. Coleman (ILO, Consultant) asseed the institutionl and labor-based construction components of the project,respectively. Editing was done by Mr. H. Young (Consultant). Mrs. A. Aruaza (Conaultant) provided computing asistance.Secreial work was done by Mrs. U. Raymond. Peer reviewers for the report were Mesrs. 1. Riverson (Transport Economist)and C. Mensckhoff (Principal Transport Specialist). Mesrs. J. Wright and E. Urm are the Division Chief and Director,respectively, of this opeation.

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

ANNEXES

2-1 Ministty of Roads and Highways, Organization Chart2-2 Administrative Structure of Decentralization2-3 District Planning and Composite Budgeting Process

3-1 DFR Headquarters and Regional Offices, Organization Charts3-2 Condition and Surface Types of Feeder Roads by Region (1991)3-3 DFR Personnel in Post as of August 19913-4 The Road Committee System3-5 Experience with Voluntary Community Labor3-6 Road Area Prioritization and Feeder Road Pre-Selection3-7 Foreign-Exchange Comparison Equipment/Labor-Intensive Works3-8 Status of Domestic Construction Industry3-9 DFR Road Work Accomplishments (1983-1990)3-10 DFR Expenditures and Sources of Funding (1983-1990)3-11 Feeder Road Development Program (1992-1999)3-12 Total and Annual Funding Needs for Feeder Road Works (1992-1999)3-13 Anticipated Financing Plan for Feeder Road Works (1992-1999)

4-1 DFR Equipment Status4-2 Organization and Management Study4-3 Maintenance Performance Budgeting System4-4 Monitoring and Evaluation4-5 Recommended DFR Organization4-6 DFR Staffing Requirements4-7 DFR Staff Training Program4-8 Domestic Construction Industry Assessment and Development Study4-9 Rural Mobility and Environment4-10 Institutional Arrangements for District Routine Maintenance4-11 District Resource Mobilization Potelitial4-12 Summary and Detailed Project Cost Tables4-13 Detailed Financing Plan4-14 Schedule for Processing Procurement and Implementation4-15 Project Supervision Plan4-16 Monitoring Matrix4-17 Detailed Time-Bound Action Program for DFR Institutional Strengthening4-18 Detailed Procurement Table4-19 Disbursement Schedule4-20 Environmental Assessment

5-1 Economic Analysis5-2 Listing of Selected Feeder Roads for Phases 1 and 2

6-1 Documents in the Project File

IBRD 23004 Transport System, Project Zones, and Conservation Reserves

AF4INNovember 1991

i

REPUBLIC -OF GHANA


CREDIT AND PMROJECT SUMMARY

Mliorrower: The Republic of Ghana

Beneficiaries: Ministry of Roads and Highways (MRH); Department ofFeeder Roads (DFR)

redit Amount: SDR 40.5 million (US$55.0 million equivalent)

T&=ms: Standard IDA terms with 40 years maturity

ProIect Description: The aim of the project is to support economic development inrural areas by removing physical constraints in feeder roadinfrastructure, reducing rural tramnmtl' costs for goods andpassengers, and supporting farm production and marketing.The four year project includes the following main components:(a) a feeder road rehabilitation program to be executed bycontract; (b) a feeder road periodic maintenance program to beexecuted by contract; and establishment of a sustainablemaintenance management system; (c) an institutionalstrengthening and support program for feeder road planning,design, supervision and quality control; (d) a rural mobilityand environmental program; and (e) support to DFR to assistin its decentralization. The project will support the goals ofthe Government's Economic Recovery Program (ERP) and theMedium Term Agricultural Development Strategy (MTADS)and will complement the trunk and cocoa road rehabilitationprograms currently underway with IDA financing.

PoQject Benefits and Risks: The main project benefit will be a more efficient and costeffective rural transport system that will stimulate agriculturalproduction and marketing, aid rural employment. Theprincipal quantifiable projict benefits are: (a) value added inadditional agricultural production; and (b) reduced transportcosts to road users. Key non-quantifiable benefits comprise:(a) increased direct employment in the rural economy; (b)improved access to social services through increased ruralmobility; (c) improved quality of life especially for women;and (d) environmental improvements in terms of reduced soilerosion potential. There are no major risks associated withthe implementation of this project. Timely execution of thephysical components of the project will depend largely onearly Government approval of procurement of works andselection of design and supervision consultants. Risks concerndifficulties in developing a sustainable feeder road maintenance

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system; constraints in DFR institutional capacity; and increasesin cost of feeder road rehabilitation works. These risks willbe addressed by obtaining Government assurance for adequateand timely funding of routine and recurrent maintenance; byestablishment of a maintenance performance budgeting systemto be operated by DFR; by DFR staff training, hiring ofsflicient middle level professional and technical staff as wellas technical assistance to fill critical positions; and by adoptionof cost effective methods of feeder road design and promptpayment to contractors for completed wo,ks.

Estimated Proiect Costs Local Foreign Total--- US$ Millions--

A. Feeder Road Proram,

1. Feeder Road Rehabilitation 21.9 17.5 39.42. Feeder Road Regravelling 9.8 10.0 19.83. Culverts/Spot Improvements 3.6 1.1 4.74. Maintenance/Workshop Equipment 0.3 3.5 3.85. Design and Supervision 1.3 1.4 2.7

Subtotal 36.9 33.5 70.4

B. Institutional Sunport Program

1. Management Line Positions 0.2 1.0 1.22. Technical Line Positions 0.2 1.4 1.63. United Nations Volunteers 0.1 0.1 0.24. Studies 0.3 0.6 0.95. Training 0.3 1.0 1.36. Construction Industry Support 0.5 4.1 4.67. Rural Mobility and Environment 0.8 1.1 1.98. DFR Decentralization Support Q, 6 1.4

Subtotal 3.2 9.9 13.1

Total Project Base Cost 40.1 43.4 83.5Physical Contingencies 3.8 3.4 7.2Price Contingencies 5 1 m Lk

Total Project Cost 49.0 50.3 99.3Taxes & Duties , =f6:

Total Project Cost (including Taxes) N5106

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Financing PlanLpS21 Foreign Total----- US$ Millions--

IDA 27.3 27.7 55.0Government of Ghana (Road Fund and Budget) 8.4 0.0 8.4USAID 20.0 1.0 21.0DANIDA 0.0 15.0 15.0OPEC 0.0 5.0 5.0Japanese Grant Fund 0,0 li 16Total SSl

Estimated IDA Disbursements,

IDA FiscalYear EY92 E FY94 FY5 FY97--- US$ Millions -

Annual 0.5 11.5 14.9 14.3 10.4 3.4Cumulative 0.5 12.0 26.9 41.2 51.6 55.0

Economic Rate of Return: 44%, based on quantifiable benefits from project componentscovering 76% of total project costs.

REPUBLIC OF GHANA

NATONAL FEEDER ROADS REHABILITATION AND MAINTENANCE PROJECI

1. INTRODUCTION

1.01 Inadequacy of feeder roads poses a serious constraint on agricultural production andmarketing in Ghana. In many rural areas, transport costs account for up to 70 percent of marketingcosts as a result of the poor state of the feeder road network. Such costs would decrease substantiallyif the rural road system wtfu improved. Many fertile farming areas have lost access to markets dueto poor roads which hinder mobility and often make head-porterage the only alternative fortransporting agri.kultural produce and inputs. However, headloading is costly and slow, it constrainslabor supply at harvest time, and it contributes to rural poverty. Thus, feeder road bottlenecks arisingfrom prolonged neglect of maintenance constrain Ghana's farm production and marketing, factormobility, exports and most non-farm activities vital for economic recovery and growth.

1.02 Feeder road rehabilitation and maintenance is a crucial part of Ghana's agriculturaldevelopment and its economic recovery and growth strategies, to alleviate poverty and ensure foodsecurity. A start was made under earlier IDA trunk road and transport projects to upgrade themaintenance of feeder roads and to strengthen the Department of Feeder Roads (DFR), the agencyresponsible for them. While progress has been made in rehabilitating feeder roads in selected areasand in building up the DFR, the main tasks still lie ahead. The restoration of feeder roads andfurther strengthening of the DFR will take about a decade of concerted action. The Government ofGhana (GOG) has sought IDA's support in designing and implementing such a program, and theproposed project would finance the first phase of the program; complementing the ongoing transportsector operations under the Transport Rehabilitation (TRP-1 and TRP-2) Projects whose mainemphasis is on rehabilitation and periodic maintenance of trunk roads. These projects are needed torebuild Ghana's road network, and are part of a phased restoration of the transport sector.

11. BACKGROUN12

A. The Country and its Macroeconomic Setting

2.01 Resource Endowment. Ghana is a medium-sized country (239,000 sq km) with awidely scattered population estimated at about 14 million in mid-1991. More than 70 percent live inrural areas. The country's economic potential is great: it has vast timber resources, its agriculturalpossibilities are considerable and it was once the world's leading cocoa producer. Mineral resourcesinclude manganese, bauxite, gold, and diamonds, and petroleum exploration is under way. In thefirst decade after Independence (1956), Ghana had one of the highest per capita incomes in Africa,and it had one of the best levels of physical infrastructure and human resources in Sub-SaharanAfrica.

2.02 Past PeRformanc. In spite of the country's potential, a continuous decline in percapita income after the early 1960s increased absolute poverty and worsened the income distribution.For two decades prior to 1983 the Ghanaian economy was characterized by (i) a bias in favor ofindustrialization; (ii) a large but inefficient public sector; and (iii) a neglect of agriculture with adecline in agricultural output, even though it had been the country's most important foreign exchange

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earner. The resulting macroeconomic imbalance led to a widespread system of price and importcontrols. By 1983, per capita income was half that in 1970, most economic activity was in theparallel market, physical inftastructure had deteriorated substantially, and the bHlance of paymentsituation was so weakened that the country accumulated large external debt and payments arrears.

2.03 Present Situation. It was against this background that the Government introduced theEconomic Recovery Program (ERP) in April 1983 in order to (i) re-establish fiscal and monetarydiscipline as a means of stabilizing the economy; (ii) restore relative prices in order to improveproducer incentives and encourage private sector participation in economic development; and (iii,rebuild the co-itry's social, economic, and physical infrastructure. The ERP was the most extensiveof those attempted in Sub-Saharan Africa. Policies in the first three years focused on stabilizing theeconomy by reducing fiscal deficits, reducing demand pressure through reduced credit, and stabilizingprices. The reforms of the exchange rate system improved incentives for exporters and helped toimprove export performance. From 1986, the program moved into the structural adjustment phasewhich focused on incentive policies, domestic resource mobilization, and public resourcemanagement. The Government has also undertaken reforms in specific sectors, particularlyagriculture.

2.04 As a result of the fundamental macroeconomic reforms implemented since thelaunching of the ERP, the economy expanded. The ERP measures led to an annual growth rate inGDP of 5.3 percent between 1984 and 1988, 6 percent in 1989 and 2.7 percent in 1990 in real terms.This is in sharp contrast to average declines of 0.9 per cera per annum between 1975 and 1982, andof 4.6 percent in 1983. The reform program has laid the foundation for long-term growth. The civilservice has been rationalized, and the financial sector has been strengthened by the revision ofbanking rules. Significant resources are being and will continue to be invested in transportinfrastructure rehabilitation and maintenance, including trunk and feeder roads, ports, and railways.

B. TheAfricuitural Sector

2.05 Sector Characteristics. Agriculture is the mainstay of the Ghanaian ecinomy,contributing more than 75 percent of merchandise exports and about 50 percent of GDP. It employsabout 60 percent of the labor force. The sector is predominantly smallholder, traditional and rain-fed.Farming systems have developed over time as adaptations to the major agro-ecological zones in thecountry. Mixed cropping to minimize risks, and the widespread integration of livestock into thefarming systems are frequent. In the forest zone, important tree crops are cocoa, oil palm, coffee andrubber, while inter-cropped mixtures of maize, plantain, cocoyam and cassava are the principal foodcrops. The transition zone is characterized by mixed or sole cropping of maize, legunes, cocoyam oryam, with tobacco and cotton as the predominant cash crops. In the savannah zone, main food cropsare sorghum, maize, cowpeas and yam in the wetter areas, whilst sorghum, millet and cowpeasprevail in the drier north. Cotton and tobacco are also important cash crops in this zone. Rice isgrown in seasonally flooded valley bottoms. In general, average yields are low throughout thecountry.

2.06 Sector Performance. As with other sectors, agriculture was severely hindered by theeconomic policies of the 1970s and early 1980s. While agricultural growth between 1975 and 1982declined steadily at about 1.0 percent per annum, and in 1983 decreased even further by 4.6 percentdue to a severe drought, the decline was reversed in 1984 as a result of improved incentives broughtabout by the ERP. The agricultural sector is now adjusting to fundamental changes in macro-economic policy and the elimination of a policy bias against agriculture. The growth rate ofagricultural production between 1984 and 1988 averaged about 1.9 percent per annum; in 1989 it was

about 5.9 percent and in 1990 it was 1.5 percent. The recovery was brought about mainly by theperformance of the cocoa and forestry sub-sectors. The slow growth in agriculture was largely due tocontinuing structural impediments such as (i) poor condition of the road infrastructure; (ii) weakmarketing systems; and (iii) the poor state of agricultural support services.

2.07 Government Obiectives. GOG's long term objectives for the sector include food selfsufficiency and security, higher employment and incomes in rural areas, regional balanced growth anda larger contribution of the sector to GDP, foreign exchange earnings and government revenues.Agriculture will contintue to be the mainstay of the economy for the foreseeable future. The countryhas the potential to use its agriculture as the basis for sustained economic growth and development,given its immense agricultural resource base. The key to realizing this potential lies in providing anenabling environment for private producers by: (i) continued liberalization of prices; (ii) increasingaccess for the private sector to markets and agriculturtl inputs; (iii) raising agricultural productivitythrough a vigorous and responsive agricultural services system; (iv) encouraging more efficientprocessing, storage and marketing systems; and (v) improving feeder road and other transportinfrastructure.

2.08 Sector Strategy. To achieve these objectives, GOG and the Bank have prepared theMedium Term Agricultural Development Strategy (MTADS). This strategy is based on the premisethat Ghanaian farmers will respond to suitable incentives to increase production of both food and cashcrops. The strategy uses simultaneous implementation of export promotion (tree crops and fisheries)and import substitution (cotton, maize, rice and meat). It is intended to: (i) improve the agricu!turalpolicy and marketing framework allowing prices to be market based, introducing greater markerefficiency and increasing investment in marketing infrastructure (including feeder roads and dryingand storage facilities); (ii) strengthen agricultural sector coordination; (iii) establish a framework forimproved allocation of public sector resources; and (iv) improve the focus on poverty alleviation andthe environment. In order to overcome the sector specific policy and structural impediments, GOG ispresently preparing an Agricultural Sector Adjustment Program (AGSAP) with IDA support. Thisprogram is in line with the MTADS and will support it.

C. The Tranpoll Sct

2.09 Sector Overview. Key elements of Ghana's transport system are: (i) a network ofabout 14,400 km of trunk and urban arterial roads and about 21,300 km of feeder roads; (ii) an over-aged road fleet of some 130,000 vehicles; (iii) a 950 km railway system linking Accra, Tema, Kumasiand Takoradi; (iv) deep-water ports at Tema and Takoradi; (v) an inland water transport system onthe Volta Lake; (vi) an international airport at Accra and domestic airports at Kumasi and Tamale;and (vii) a national airline providing international and domestic services. Road transport is thedominant mode in the system, and about 90 percent of it is operated by the private sector, with easymarket entry and little government regulation of its operations. Ports, lake transport, railways andcivil aviation are dominated by the public sector. Though it intervened on a large scale in thetransport sector in the past, GOG now clearly favors st.engthening private sector operations,streamlining and reorganizing public transport enterpri.;>, and privatizing many of them.

2.10 Str Qbjectives. Government's primary sector objectives emphasize(i) rehabilitation and maintenance of existing transport infrastructure in a phased program, with aminimal amount of new construction, and (ii) strengthening institutions in the sector. The network oftrunk and rural roads is by far the most important part of the transport system. Though recentprojects are gradually improving road conditions, particularly for the trunk roads, the overall road

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network is still in a generally poor sate. It therefore needs the largest share of resources and thelongest period to regain capacity.1/

2.11 Road Administration. The Ministry of Roads and Highways (MRH) and its threeagencies, Ghana Highway Authority (GHA), DFR and Department of Urban Roads (DUR), are theorganizations which plan and implement road construction, rehabilitation and maintenance. MRH wasset up in 1982, as a separate ministry in charge of roads and highways, with a nucleus of technicalstaff that reports to the Secretary of Roads and Highways. GHA was established in 1974 as anautonomous body with its own Board of Directors appointed by the Government, but the Board hasrecently been replaced by an Interim Management Committee. GHA has a staff of some 6,500 spreadover the central office in Accra, 10 regional offices and 32 road area offices. It also has a centralworkshop and a number of smal! regional workshops. GHA has 70 engineers, 60 technicianengineers as well as some 670 technical and supervising staff. DFR and DUR were established in1981 and 1983, respectively, and function as civil service agencies under MRH. DFR staff includes36 engineers, some 40 other professional staff and 330 technical personnel. It maintains small officesin all regions and in 10 road areas. DUR has a staff of about 200, including 10 engineers and officesin the main cities, where it works with th- city councils. Annex 2-1 shows the organization chart ofMRH.

2.12 Institutional Achievements and Requirements. The most important achievements inrecent transport and road projects include: (i) implementing a phased 10-year program (1988-1997) torehabilitate and maintain the trunk road network, and start of work to organize feeder roads planning,rehabilitation and maintenance; (ii) strengthening MRH, GHA, DFR and DUR through technicalassistance in key areas and through training; (iii) reducing the share of force account works carriedout by direct departmental labor; (iv) setting up a Road Fund to ensure the regular flow of funds tothe agencies and contractors; (v) starting pilot projects for introduc.ing labor-intensive rural roadrehabilitation; and (vi) improving contractor capacity through sub-loans for equipment and spareparts, training, competitive bidding for all works, and ensuring prompt payments to contractors. Themain institutional support needs which remain in MRH, GHA, DFR, and DUR are: (i) technicalassistance in specialized areas where local engineers are not available; (ii) an enlarged inter-agencytraining program to improve existing staff skills and to train newly graduated engineers; (iii)incentives such as housing for key officials and food aid through the World Food Program (WFP),which has helped to improve productivity; and (iv) training and advice to domestic contractors andconsultants to fuither improve their technical and managerial efficiency. The ongoing First andSecond Transport Rehabilitation Projects and the Second Urban Project provide such support toMRH, GHA, DFR and DUR; additional support for DFR will be provided through this project.

2.13 DIomestic Contracting and Consulting Industries. With the increased roadrehabilitation and maintenance works financed under ongoing road and transport projects, thedomestic contracting and consulting industries are developing well. There are some 145 local roadcontractors classified by the Government in categories Al to A4 according tc capacity, some 310small bridge and strictures contractors (classifications Bi to B4), and some 47 labor-intensive localroad contractors classified as class C. Previous projects have included substantial provisions for lines

1/ More detailed information on Ghana's transport sector was given in SAR-6921 GH for theFirst Transport Rehabilitation Project (TRP-1), presented to the Board on May 27, 1988,updated in SAR-8945-GH for the Second Transport Rehabilitation Project (TRP-2), presentedto the Board on December 13, 1990. The following presentation concentrates on road sub-sector issues which are of relevance to feeder roads.

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of credit and technical assistance to strengthen domestic contractors. The economic reformsimplemented in the country including foreign exchange 1 .eralization, have enabled contractors tohave easy access to foreign exchange for spare parts and equipment. They have also encouraged thereturn of Ghanaian engineers to Ghana, particularly to consultancy firms which, often with foreigncour. -rparts, are undertaking a substantial share of trunk and feeder road engineering design andconstruction supervision. There are at present some 12 local consulting firms working on roadprojects. In addition, a large number of foreign contractors and consultants are active in Ghana'sroad sub-sector.

2.14 R-oad Sub-Sector Strategy. The Government strategy for road rehabilitation andmaintenance recently evolved into two separate branches, one for trunk roads and another for feederoads. A trunk road network stabilization plan supported by the TransDort Rehabilitation Priects(r1RP) was developed in 1987, with the aim of clearing the backlog of rehabilitation and periodicmaintenance requirements on paved and gravel roads during the 1988-1997 period. The purpose ofthe plan is to stabilize the trunk road network condition at an acceptable 70% good and 30% fair orpoor ratio, thus almost reversing the ratio prevailing in 1987. On the basis of the stabilization plan,the 1988-1997 requirements for trunk roads total about 11,300 km of rehabilitation and periodicmaintenance, and some 1,500 km of reconstruction and upgrading works.

2.15 Feeder road rehabilitation and maintenance became relatively well organized around1986/87 after DFR became a stronger organization. So far, the feeder road program has concentratedon: (i) rehabilitation of cocoa roads (trunk and feeder roads in cocoa growing areas) under theongoing Cocoa Rehabilitation Project; (ii) rehabilitation of non-cocoa feeder roads on a selectivebasis; and (iii) introduction of a successful labor-intensive road rehabilitation program based on lightequipment and contractor training and support. IDA has assisted DFR in these activities and inpreparing a long-term rural road strategy. To support its MTADS, the Government, with IDA andother donor support, has recently prepared a 7 year National Feeder Roads Development Program(NFRDP) for the mid-1992 to mid-1999 period. This project will be the first 4-year slice of thisprogram, starting in early 1992 and concentrating on institutional strengthening, feeder roadrehabilitation and maintenance, and establishment of a sustainable maintenance performance budgetingsystem involving local governments in the districts and local wmnunities for routine maintenance.

D. Government Decentralization Policy and Strategy

2.16 Despite a long and complex history of attempts to decentralize government in Ghana,the Government remains highly centralized in Accra. Decentralization has been an announced, highpriority policy objective of the Provisional National Defense Council (PNDC) since 1983. PreviousGovernments have also sensed the need to improve government performance through a variety ofdecentralization schemes. In large part, these efforts had failed to achieve their objectives in the past.

2.17 The principal recent accomplishment of the PNDC Government with respect to itsintent to decentralize has been the enactment of PNDC Law 207, the 'Local Government Law of1988." Law 207 deals with virtually every aspect of local government such as Regional CoordinatingCouncils, District Assemblies and Metropolitan Authorities. However, its primary focus is on districtgovernments, whose powers are greatly enhanced thereby.

2.18 PNDC Law 207 defines some of the key mechanisms by which the Governmentintends to decentralize its operations. The primary strategy is to devolve the central government'sadministrative and political authority to local levels (i.e. regions, districts, towns and villages), with

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the District Assembly being the centerpiece of administrative and political authority. Among theprincipal functions of the 110 district governments are the following:

- Supervision of the field operations of twenty-two central government departments;

- Responsibility for overall development of the district;

- Preparation and submission of annual development plans and composite budgets to thePNDC (via Regional Coordinating Councils);

- Formulation of programs and strategies for mobilizing and utilizing district human andfinancial resources;

- Promotion and support of productive activity and social development; and

- Initiation of programs for the development of basic infrastructure, municipal worksand services.

2.19 PNDC Law 207 mandates that District Assemblies shall have administrative andfinancial control of the district-level operations of twenty-two departments of the central government,including the DFR. For all practical purposes the staff of the District Assembly would thereforeinclude not only core officers of district administration, but also all civil service employees of thetwenty-two departments. The administrative structure of decentralization contemplated by PNDCLaw 207 is described in Annex 2-2. Annex 2-3 contains a summary of the district planning andcomposite budgeting process.

2.20 To date, no department has transferred budget administration to direct district control.Some departments have begun to place staff under district supervision, particularly those that werealready involved in local operations prior to Law 207. For instance, the Department of CommunityDevelopment has officers in each District Assembly headquarters who are supervised by DistrictSecretaries. However, this department has not yet decentralized its budget.

2.21 Numerous delays in implementing key aspects of Law 207 should not be interpretedas a lack of interest. Implementation is slow precisely because it involves very significant shifts ofauthority and resources, primarily from the ministries and departments to the districts and DistrictAssemblies. Nevertheless, many officials believe that the commitment to decentralization isirreversible.

2.22 The principal objective sought by the PNDC through decentralization is to placepolitical and professional supervision as close to implementation as possible. The PNDC believes thatthere is currently little linkage between political leadership and implementation activities. In theprocess of decentralization it is hoped that the current vertical linkages, which run on departmentaland ministerial lines, will be broken down and replaced by a combination of direct vertical linkages tothe PNDC and better horizontal linkages across departments at the district level. It is hoped that thiswill speed up decision-making, while leaving the ministries with policy formulation, projectmonitoring and evaluation.

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E. Bank Group Assistance in Agriculture and Roads

2.23 In addition to the support for the ERP through the MTADS and its AGSAP, a numberof projects have been financed within the agricultural sector to overcome particular constraints.These include the Second Oil Palm Project (Credit 1498-GH in 1984) and the Cocoa RehabilitationProiejt (Credit 1854-GH in 1988, comprising a large cocoa roads component), to provide a broadspectrum of support to the oil palm and cocoa sub-sectors; the Agricultural Services RehabilitationProject (Credit 1801-GH in 1987), to develop a range of agricultural services; the Rural FinanceProe (Credit 2040-GH) to improve the efficiency of financial institut;ons; and the AgriculturalDiversification Prgiect (Credit 2180-GH in 1990), to promote the production of tree and horticulturalcrops, and gradually reduce Ghana's over-dependence on cocoa. Support to the forestry sub-sector isbeing provided through the Forest Resource Management Project (Credit 1976-GH in 1989). ANational Agricultural Research Project has recently been approved. The key element in all theseprojects is the development of the role of the private sector in agricultural production and inputsupply.

2.24 In the roads sub-sector, apart from an engineering credit for US$1.5 m in 1969 forthe preparation of road projects, the Bank Group has provided four highway credits (one credit/loancombined), two transport credits, and two urban credits with road components. The First HighwayUroiec (Credit 438-GH for US$13.0 m in 1974) was completed in early 1981 while the SocondHighway Project (Credit 594-GH for US$10.0 m and Loan 1182-GH for US$18.0 m in 1975) wascompleted in 1983. The Third Higihway Project (Credit 1029-GH for US$25.0 m in 1980) was fullydisbursed by late 1986. These three projects were completed five, four, and three years, respectively,behind the SARs' estimated completion dates. The projects focused on trunk road rehabilitation andmaintenance; institution building of GHA; and development of domestic construction and privatetrading industries through provision of funds for the purchase of equipment and spare parts on an on-lending arrangement through the Bank for Housing and Construction (BHC).

2.25 The main conclusions from experience with these early road projects covering theperiod from 1974 to 1986 (based on audit completion reports) were that: (a) the objectives weresound but the targets for almost all components were unrealistically high because negative aspects ofthe economic environment were either discounted or overlooked; (b) targets for institutional buildingwere only partially met mainly because they were over-optimistic compared to the prevailingconditions and Government commitment; (c) the domestic construction industry benefitted throughcarrying out small civil engineering projects, though some contractors did poorly because worksawarded to them were beyond their technical and financial capacities; (d) the difficult economicconditions of the country and implementation deficiencies slowed down progress; and (e) all projectshave suffered from inadequate local funding and from shortage of foreign exchange needed to enablethe Government to fulfill local financial obligations.

2.26 Since the first three highway projects, the Bank Group has provided funds for theRoad RehabilitatiQn and Maintenance Proiect (RRMP) (CR 1601-GH for SDR 40.4 m, with additionalCR A-1GH for SDR 10.1 m from the Bank's Facility for Sub-Saharan Africa, and cofinanced byJapanese Grant 1601-IGH for Yen 100.0 m, African Development Bank, UNDP and MFEP in 1985);the First Transport Rehabilitation Proiect (TRP-1) (CR 1858-GH for SDR 46.9 m in 1988); and theSecond Transport Rehabilitation Project i RP-2) (CR 2192-GH for SDR 69.0 m in 1991). RRMPwas closed on June 30, 1991; TRP-1 funds are 90% committed as of June, 1991; and TRP-2 becameeffective in May, 1991. These three projects vary in their composition of components as follows:RRMIP consisted of civil works for trunk and feeder roads; training; support to local contractors; andconsultant and TA assistance; TRP-1 consists of civil works for trunk and feeder roads; bridges;

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railway rehabilitation; support to transport sector institutions; pilot programs for road transport andrural transport; and support for infrastructure planning; and TRP-2 consists of civil works for trunkroads and bridges; support to the MRH; railway rehabilitation; support to transport sector institutions;and a Northern Region pilot scheme.

2.27 RRMP was closed after a one-year extension and the credits were fully disbursed.Physical targets were 70% achieved; policy and institutional objectives have been achieved; thecontracting system was reformed; full competitive bidding was established; domestic contractors andconsultants' capacity have increased; and the feeder roads labor-intensive pilot program proved to besuccessful. Implementation of TRP-1, after a slow start, is now progressing well. Accomplishmentof trunk road rehabilitation and maintenance works will be less than the SAR target because ofsubstantial increases in cost per km due to further deterioration in the condition of the roads. Theincreasing backlog in physical works will entail increased deterioration in road conditions requiringmore rehabilitation work rather than the periodic resealing and resurfacing works stipulated underGPA's trunk road network stabilization program. Start-up of TRP-2 was about six months behind theagreed implementation schedule, mainly due to the time taken by the Government in approvingprocurement. The linkages between the lessons learnt from completed and ongoing road projects andthe design of the feeder roads project are discussed in paras. 4.30 and 4.31.

2.28 Measures for simplifying the procurement approval process were announced at theAkuse II meeting in May 1991 and confirmed at the infrastructure sector implementation review heldin Accra in July 1991. Once these measures are implemented, progress of the TRP projects isexpected to improve. The Accra District Rehabilitation Project (Urban-I) (Credit 1564-GH for SDR22.5 m in 1985) included, inter alia, new construction of the ring road in Accra which has beencompleted. The Second Urban Project (Urban-2) (Credit 2157-GH for SDR 53.7 m in 1990) becameeffective in May 1991. This project includes, inter alia, reconstruction and upgrading of selectedurban road sections in Accra.

HI. FEEDER ROAD CONSTRAINTS AND STRATEGY

A. Feeder Road Organization

3.01 Feeder Road Administration. Prior to the establishment of DFR in 1981, feederroads were the responsibility of various agencies including GHA. At present, feeder road planning,construction, rehabilitation and maintenance are the sole responsibilities of DFR. Annex 3-1 showsthe existing organization of DFR headquarters and its regional offices. Since its creation, DFR hasbeen actively supported as the focal point for feeder road development. This support has beenthrough (i) technical assistance and training; (ii) setting up a Road Fund shared with the trunk roadprogram to improve resource availability; (iii) training and supporting labor-based contractors forfeeder road rehabilitation; (iv) executing most feeder road rehabilitation works through localcontractors; and (v) expanding the role of local consultants for engineering design and workssupervision. IDA has supported these efforts through feeder road components in three recenttransport and road projects.

3.02 Network Condition and Surface Types. Although existing policies have alreadyresulted in an enhancement of the DFR role, the overall condition of the feeder road network remainspoor. At present, only 16 percent (some 3,300 km) of feeder roads are in good condition,constituting DFR's maintainable feeder road network. Roads in this category were rehabilitated

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between 1983 and August 1991 and are being maintained to the extent present funding levels allow.Of the remainder, 24 percent (5,100 km) of the network is in fair condition, and 60 percent (12,900kin) is in poor or very poor condition. Only 39 percent (8,300 km) of the network is gravel-surfacedwhile 60 percent (12,600 km) consists of earth roads. The amount of bitumen-surfaced feeder roads(300 km or I percent) is negligible. Annex 3-2 shows the condition and surface types of Ghana'sfeeder road network by region as of August 1991. This condition mix and DFR's limited absorptivecapacity indicate the need for a concerted effort to step-up physical rehabilitation and establish asustainable feeder road maintenance performance budgeting svstem.

3.03 Feeder Road Issues. With Bank and other donor support, and with active GOGbacking, DFR has become an important agency, but its organization is not yet fully developed. Anylarge expansion of DFR's activities mandates a close examination of its present capacity andconstraints. Feeder road rehabilitation and maintenance on a larger scale will require:(i) building institutional capacity; (ii) establishing a sustainable mechanism for district routinemaintenance organizations; (iii) expanding DFR's feeder road planning and selection capacity tointegrate future rehabilitation and maintenance activities, in agreement with national, regional anddistrict government policies; (iv) reaching a consensus on design and technology choices; and(v) developing a medium-term feeder road development program including its funding. These issuesare dealt with in the following.

B. Institutional Capacity

3.04 Institutional Structure and Staffing. Country-wide feeder road works requiresubstantial preparation and supervision. DFR is a young organization which operates at four levelsin: (i) the head office in Accra, (ii) 10 regional offices in the regional capitals, (iii) 10 out of 32 roadarea offices, and (iv) some 30 out of 110 districts. Improvement in some critical areas is essential.While staffing levels for DFR are generally appropriate, out of 67 engineering posts, only 34 (51percent) are filled. Experienced middle level engineers are in particularly short supply. Only 33percent of principal engineers' positions are occupied, and 6 percent of senior engineers' posts arefilled. In the regional organization, only 42 percent of positions for engineers are occupied. Theneed for engineers must be met if DFR is to fulfill its role as the focal point for feeder roaddevelopment in Ghana. Pay conditions do not compare favorably with GHA or the private sector,and civil service policies provide inadequate salary differentials. There is also a lack of trainedaccountants, and career opportunities for technician engineers and quantity surveyors are poor.Annex 3-3 gives details of DFR's 1,430 personnel at post as of August 1991.

3.05 Organizational Issues. DFR top managers are qualified, experienced, and wellmotivated. Their enthusiasm does much to engender the good level of morale in the organization.The distribution of headquarters management responsibilities for different operations is sound andefficient. The current division of responsibilities between the maintenance and development divisionsappears appropriate. Work loads are allocated flexibly and distributed evenly, and no changes areneeded. Recently, more emphasis has already been placed on feeder road planning and selection, andintegrating feeder road rehabilitation and maintenance into trunk road and agricultural priorities. ADFR organizational study which was conducted for the preparation of this project recommended thecreation of a separate planning division. Also, a maintenance performance budgeting system will bedeveloped under the project to ensure that every feeder road once it has been rehabilitated is followedup by systematic maintenance. The management structure of the three-level regional organization(regional, road area, and district offices) was considered adequate by the organizational study.However, DFR needs to achieve staffing levels, especially in terms of engineering capacity, that will

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enable it to design and supervise all of its labor-based works while it will continue to rely onconsultants for the design and supervision of all other contract works.

3.06 Regional Operation. At the regional level, DFR engineers serve as chief advisors tothe Regional Secretaries, and coordinate the distribution of resources among road area offices. Aregional engineer is backed by one additional road engineer, and five regions already have anadditional engineer to oversee labor-intensive operations, including Brong Ahafo, Ashanti, Western,Eastern and Northern Regions. The regional engineer is also in charge of distributing the services ofthe DFR-supported Mobile Repair and Maintenance (MOREMAT) units among the road area officesin the region. MOREMAT units are force account operations which execute emergency repair andheavy blading works. The programming of MOREMAT operations requires trained engineers as well1as an equipment maintenance program. Most communities contribute to the operation of MOREMATunits in the form of diesel for graders and trucks, and food and accommodation for equipmentoperators.

3.07 Field Offices. Each road area office serves between 3 to 4 districts. At present, only3 area offices are well established, and 7 are partially established. DFR endorses the need for a totalof 32 road area offices to coordinate work in the 110 districts, and to support GOG's decentralizationpolicy. Each area office will be in charge of an average of 650 kilometers of feeder roads. Each ofthe already established area offices has one technician engineer who represents DFR at the districtlevel and is expected to become an advisor to the District Secretary and the District Assembly forprioritizing and costing feeder road recurrent and routine maintenance activities. Once theMOREMAT units are transferred from the regional to the area offices, each technician engineer willrequire training to program the activities of MOREMAT in coordination with the regional engineer.Only three office buildings out of the existing 10 area offices are considered adequate. Three areaoffices have a vehicle each, and 7 others are expected to receive a vehicle each shortly. A foremanhas been assigned to each of 30 district offices to implement routine maintenance. Presently, DFR-supported force account Spot Improvement and Maintenance (SIAM) units are partially operational in35 to 40 districts only. Road committees have been established in some 36 districts. However, thecoordination of these road committees has proven difficult. Annex 34 describes the road committeesystem while Annex 3-5 summarizes DFR's unsatisfactory experience with voluntary communitylabor.

3.08 Institutional Strategy. The Bank, in coordination with other donors, needs to continueits support of DFR as the focal point for feeder road policies and operations in Ghana. Interagencycoordination with the Ministries of Agriculture (MA) and Local Government (MLG), GHA, theEnvironmental Protection Council (EPC) and district authorities will also be improved. Expansion ofDFR will emphasize a build-up of maintenance capacity. At the Head Office, a planning unit wascreated two years ago and will be upgraded to a division as a condition of credit effectiveness. Theappointment of a deputy director of planning, not later than December 31, 1992 is a requirement forthis project. Some 20 new road area offices will be established, starting July 1, 1992, as maintenanceactivities are expanded. These issues were agreed during negotiations.

3.09 All 110 districts require arrangements for routine maintenance. DFR capacityexpansion at that level will follow Government's decentralization objectives by expanding its technicalsupport to the districts and, starting from July 1, 1992, as needed train about 80 additional foremenfor the supervision of district feeder road maintenance activities. Ihis was agreed duringnegotiations. Even though DFR has made impressive progress in training labor-based contractors andits own staff, overall training capacity of DFR needs to be strengthened. Training is needed at alllevels, including technician engineers, equipment operators, foremen and labor-based contractors.

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The provision of permanent facilities and staff at the training school at Koforidua will allow it toperform this function. This school will be strengthened under the proposed project to become theWest-African equivalent of the East-African labor-based training school in Kisii, Kenya.

C. District Routine Maintenance Organization

3.10 DFR has historically relied on unpaid community labor to accomplish feeder roadroutine maintenance. It has supplied tools and technical supervision to volunteer laborers mobilizedby the multi-tiered road committee system. Technical supervision is provided by DFR foremen basedat the districts. Where it has proven difficult to mobilize sufficient and reliable voluntary labor, foodaid has sometimes been given to laborers. However, a fully implemented community routinemaintenance system exists in no more than ten percent of the districts and has generally failed toprovide sustained, timely routine maintenance. There are not enough foremen available andcommunities in these districts are inconsistent in volunteering the required labor.

3.11 Community supported routine maintenance is, in theory, backed up by DFR forceaccount SIAM units based at the road area level. These units include mobile culvert gangs, backlogroutine maintenance teams and towed grader teams. However, SIAM units are in place in onlytwelve of the thirty-two road areas and are often the primary providers of routine maintenance ratherthan providing backup to community efforts. Recurrent maintenance will continue to be provided byDFR force account MOREMAT units, with the support of towed grader teams from the SIAM units.Graders for a nation-wide MOREMAT system have been procured, but staffing and training of graderoperators lags behind the available equipment. This will be rectified under the proposed project.

3.12 Apart from a number of problems described above, the intended routine and recurrentmaintenance system, with the exception of reliance on voluntary community labor, seems to bereasonably well designed and attainable over the intermediate term (5 years). Progress in resolvingmany of the identified problems is evident.

3.13 The most prominent gaps in the intended routine and recurrent maintenance systemhave occurred at the district level. These gaps are the result of both a failure to effectively implementthe intended system in many districts, and failures of the system to perform successfully whereimplemented. Therefore, the early stages of this project will include efforts to develop and testalternative institutional arrangements for district-level organization and finance of routinemaintenance.

3.14 Because of the apparent variety in district circumstances and the lack of experiencewith successful routine feeder road maintenance in Ghana, no single "blueprint" for the organizationof routine maintenance can be offered. Each district must be taken as somewhat unique until thecircumstances of the districts and the requirements of successful routine maintenance are betterknown. When the circumstances and requirements are better known, it is unlikely that a single,standard model of routine maintenance organization will be adequate.

3.15 Appropriate systems for the organization and financing of sustainable routine feederroad maintenance will be developed as follows:

(a) District Assemblies will be responsible for routine and recurrent feeder roadmaintenance in accordance with the Government's expressed decentralization policyand PNDC Law 207. This project will provide technical assistance to support DFR's

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decentralization and the strengthening of routine maintenance planning, contracting,supervision and financial management capacities of the involved districts;

(b) Central Government will ensure financial sustainability of routine and recurrentmaintenance by granting sufficient funds in a timely manner to the 110 districts for afour year period until end 1996, starting early 1993. Grants will cover 100 percentof estimated costs of routine and recurrent maintenance. DFR has already prepareddetailed cost estimates comprising all maintainabl feeder roads in each of the 110districts. Only after a thorough assessment of the resource mobilization potential ineach district would Central Government be able to decide to what extent individualdistricts would be expected to contribute to future feeder road maintenance funding.Until such time full routine and recurrent maintenance funding is expected to comefrom Central Government budget resources;

(c) Specific arrangements for the organization and eventual financing of sustained routinemaintenance have been identified as (i) combined rehabilitation and maintenancecontracts, (ii) single man contractors, (iii) labor-based contractors, and (iv) contractingwith intermediary groups. The relative effectiveness of each of these arrangementswill be evaluated in the first two and one-half years of the project in an experimentalprogram in up to eight "pilot' districts.

D. Feeder Road Planning and Selection

3.16 Feeder Road Planning. The proportion of feeder road expenditures to total roadexpenditures was around 17 percent in recent years. This compares favorably with other countries inthe region. However, there is no firm mechanism to split expenditures between rehabilitation andmaintenance for feeder roads, since planning so far has largely been limited to rehabilitation. In pastyears, planning for feeder roads was limited to the preparation of annual work programs by DFR,based on urgent requests from field offices and local communities. Planning capacity has beenbolstered as part of TRP-1 with the creation of a planning unit, which has focused initially ondeveloping planning methodologies and criteria for feeder road selection and economic analysis.Selection and design methods for labor-based road works have also been introduced. Goodcooperation with the planning unit in the Ministry of Agriculture (MA) has been achieved.

3.17 Regional and District Planning. At the regional level, DFR has developed aprioritization mechanism for road areas in close coordination with MA, and has agreed to focus futureinvestments in road areas with high to medium agricultural potential. Within each region, networkbased planning is beginning to be coordinated with rehabilitation works in the trunk road network toensure linkage to feeder roads, coordination that until recently was only coincidental. At the districtlevel, DFR has developed and implemented a methodology to pre-select and evaluate teeder roads ona corridor basis based on economic criteria. The methodology which consists of pre-selection andfinal economic evaluation includes substantial local participation. Local constituencies are involved atthe pre-selection stage. DFR has started operationalizing this methodology in 16 road areas whichhave been selected for this project. Annex 3& describes the road area prioritization and feeder roadpre-selection methodologies.

3.18 PlanninggStIa1g. DFR will adopt a multi-tiered planning and programming systemallowing the participation of local constituencies in the districts. The existing planning capacity,limited for the most part to route selection, will evolve into a system that allocates resources forfeeder road rehabilitation and maintenance at the national, regional, road area and district levels.

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DFR management will develop targets for an adequate split of resources between rehabilitation andmaintenance, ensuring linkage to trunk road rehabilitation and maintenance activities. Given thepresent condition of the feeder road network, most expenditures are concentrated on rehabilitation.However, in the future, DFR is expected to substantially increase allocations for maintenance.Regional distribution of resources will continue to be linked to the priority areas set by the MTADS.The prioritization of road areas will continue to be reviewed by the planning units in MA and DFR inthe context of national priorities. In the short term, DFR is expected to concentrate rehabilitationinvestments in districts with high agricultural potential. In the long term, DFR's rehabilitationactivities will expand to cover other districts with medium agricultural potential.

3.19 Local planning requires involvement of local constituencies for the selection of feederroads and for increased accountability and community participation in routine maintenance activities.The road selection process will formalize the methodology started with the preparation of this project,including pre-selection and final economic evaluation. A maintenance performance budgeting systemto program maintenance activities will be developed and implemented as part of project activities. Aconsolidated framework for network based planning and budgeting is needed so that maintenancerequirements are considered along with those of rehabilitation. Planning for feeder roads will evolveinto a system using these methods and criteria as well as involving key constituencies at the center(GHA and MA), and at the regional and district levels (District Assemblies).

E. D-esign and Technology Choices

3.20 Design Standard. In the past, the emphasis on the concept of "design speed" andoverly wide roadways resulted in unnecessarily high standards and excessive construction andmaintenance costs. Serviceability and durability are now receiving greater emphasis in design. Theformer emphasizes all-weather access as against speed and riding comfort. DFR has alreadyestablished three feeder road standards with formation width of: (i) 5 m for Average Daily Traffic(ADT) of 10 to 20; (ii) 6 m for ADT of 20 to 50; and (iii) 7 m for ADT of 50 to 100. Gravel layerthickness ranging from 10 to 15 cm for sub-base and surface courses is considered sufficient forfeeder roads. The thickness variation from 10 to 15 centimeters will depend on subgrade materials,traffic density and axle loads. Geometric design standards have also been specified for horizontal andvertical aligments and maximum gradient, taking into account the need to minimize earthworks byfollowing as much as practical the existing alignments. Durability is being introduced as a designconcept during the training of domestic contractors, thus giving more attention to compaction androad drainage requirements.

3.21 Choice of Work Methods. In the past, the use of capital-intensive methods forrehabilitation and maintenance of roads has sometimes been plagued with frequent equipmentbreakdowns, delays in procurement of equipment and spare parts, and foreign exchange constraints.In response, GOG and DFR, with assistance from IDA and technical assistance from the UnitedNations Development Programme (UNDP) and the International Labour Organization (ILO), havesuccessfully developed a labor-based contractor pool. After a pilot project and four subsequenttraining courses, 47 contractors will be trained by the end of 1991 to conduct labor-based works witha potential output in feeder road rehabilitation of some 1,000 to 1,200 km per year. These labor-based works have proven technicallv and economically viable. In addition, there appears to besufficient labor available in most rural areas in Ghana.

3.22 The technology has key advantages such as: (i) costs are between 15% to 20% lowerthan the capital-intensive method; (ii) about 10 times more employment is generated; (iii) foreignexchange costs are reduced; (iv) multiplier effects help the rural economy; and (v) the community is

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involved. A small contractor using appropriate low-cost equipment for labor-intensive works employsbetween 150 and 200 workers daily and rehabilitates about 2 km of feeder road per month or 25 kmper year.

3.23 Annex 3-7 contains a detailed foreign exchange comparison between the capital-intensive and labor-intensive work methods for a standardized km of feeder road. The analysis wascarried out on a work item basis, separately for the four principal feeder road operations DFRundertakes: (i) rehabilitation; (ii) regravelling; (iii) spot improvement and reshaping; and (iv)culverting. The key result of the analysis is that on average, the labor-based technology requires lessthan 50 percent foreign exchange compared to the capital-intensive work method.

3.24 The continued development of private domestic contractors for road works ofacceptable quality requires further assistance to the industry which will be provided under this project.Support and training is needed to increase the number of technically and financially viable domesticcontractors. In addition, the performance and sustainability of all types of domestic contractors needto be monitored properly and regularly. Some labor-based contractors may lean towards moreequipment-intensive operations while capital-intensive contractors may start to compete for labor-based works. Annex 3-8 contains a summary of the status of Ghana's domestic construction industryincluding its performance problems.

3.25 Force Account versus Contract Qperations. DFR's objective is to continue executingrehabilitation and periodic maintenance works by contract. Routine maintenance operations on feederroads by force account are severely limited and are presently executed by SIAM units only.Emergency repairs and heavy blading to restore basic access will be continued using the MOREMATunits which are being expanded with the arrival of 70 new graders. Communities have beenencouraged to contribute labor to the SIAM units with mixed results. Mechanisms for involvingcommunities in feeder road routine maintenance need to be further strengthened, which will be doneunder this project.

F. Feeder Road Development Strategy

3.26 Past Physical Achievements. Between 1983 and 1990, some 2,700 km of feederroads were fully rehabilitated. DFR relied mainly on domestic contractors for these works. Some1,413 culverts were constructed, reconstructed or extended; some 7,070 km of roads reshaped; andsome 2,310 km regravelled. While regravelling was mostly by contract, reshaping and culvertconstruction were executed by force account (MOREMAT units). Substantial increases in feeder roadrehabilitation works have taken place over the last 2 to 3 years. An additional 900 km of feeder roadrehabilitation is ongoing and will be completed by the end of 1991. This will bring the total of fullyrehabilitated feeder roads, defined as the maintainable network, to 3,600 km by end-1991. Annex 3-2gives details on DFR's road work accomplishments for the period 1983-1990.

3.27 Past Exnenditure. DFR's sources of funding for the period 1983-1990 are shown inAnnex 3-10. Domestic funding sources are the GOG Central Budget and the Road and Cocoa Funds.Central Budget contributions reached on average Cedis 450 million per annum between 1983 and1990 and were spent on recurrent (reshaping) and capital (rehabilitation, culverts, regravelling)works. Road and Cocoa Fund contributions have increased rapidly and reached about Cedis 800million and Cedis 2,500 million in 1990, respectively. Regular external financing for feeder roadsstarted in 1989 and is being provided by the United States Agency for International Development(USAID), the International Fund for Agricultural Development (IFAD) and IDA through its Programof Actions to Mitigate the Social Costs of Adjustment in Development (PAMSCAD), and its TRP-1

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and CRP projects. While total support for feeder road works between 1983 and 1987 varied betweenUS$6.0 and 8.0 million annually (with the exception of 1985 when virtually no funds were available),overall funding increased to US$15.0 million in 1988, decreased to US$13.0 million in 1989, andreached US$19.0 million in 1990. The 1991 funding level (in terms of both domestic and externalresources) is estimated at US$20.0 million.

3.28 Propose Development Program. As noted in para. 2.15, DFR, with IDA assistance,has developed a 7 year feeder road development program (mid-1992 to mid-1999). Details of theproposed program are shown in Annex 3-11. Physical targets to be achieved between 1992 and 1999are: (i) full rehabilitation of 8,400 km of high priority feeder roads at an average 1,200 km perannum; (ii) regravelling of 8,850 km of fully rehabilitated high priority feeder roads; (iii) spotimprovement and culverting of 1,500 km of additional lower priority feeder roads; and (iv) keepingthe oc rehabilitated and spot improved feeder roads under permanent recurrent (blading) and routinemaintenance.

3.29 During the mid-1992 to mid-1996 period (implementation period of this project), atotal of 4,800 km of full feeder road rehabilitation will be financed by (i) PAMSCAD (250 km); (ii)IDA, the African Development Fund (ADF), and the Cocoa Fund and GOG Capital Budget under theongoing Cocoa Rehabilitation Project (2,050 km); and (iii) IDA, USAID, the Danish InternationalDevelopment Agency (DANIDA), the Organization of Petroleum Exporting Countries (OPEC Fund),and GOG Road Fund and Capital Budget under this feeder roads project (2,500 km). During thesame period DFR will also carry out under the feeder roads project: (i) regravelling of some 2,850km of feeder roads which were flXly rehabilitated between 1983 and 1990 and need urgent periodicmaintenance, and (ii) spot improvement of some 720 km of lower priority roads. Under the feederroads development program, adequate recurrent and routine maintenance on all rehabilitated and spotimproved feeder roads u.ndr maintenanc (9,120 km by 1996) will be provided through Governmentfunds.

3.30 During the 1996 - 1999 period some additional 3,600 km of feeder roads will be fullyrehabilitated, bringing the high priority feeder road network under maintenance to a total of 12,000km, which is considered as an adequate feeder road network for the country. Also, regravelling onsome 6,000 km of high priority feeder roads is intended, together with 780 km of spot improving andculverting, and recurrent and routine maintenance on a total of 13,500 km on feeder roads by end-1999.

3.31 Development Program Costing. To arrive at DFR's feeder road development andfollow-up maintenance funding requirements, a preliminary maintenance performance budgetingsystem was developed during project appraisal. It was based on DFR and mission experience, and byadapting GHA's maintenance management system to feeder roads. The total and annual fundingneeds for civil works for the 1992-1999 NFRDP are shown in Annex 3-12. Total costs are estimatedat US$311.0 million with a foreign exchange component of US$127.0 million (41 percent). DFR willneed substantial external funding for rehabilitation and periodic maintenance; consultancy andtechnical assistance services for engineering design and works supervision, and institutionaldevelopment; and funding provision for purchase of materials and equipment for routine and recurrentmaintenance.

3.32 The required funding level for recurrent and routine maintenance operations between1993 and 1999 has been estimated at a total of US$31.5 million. While recurrent maintenance willcost US$19.1 million, roui.:Le maintenance will amount to US$12.4 million. US$12.7 million will beneeded for both routine and recurrent maintenance for the 1993 to 1996 period, and US$18.8 million

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for the 1997 to 1999 period. These cost estimates include 10% physical and 17% pricecontingencies. DFR has prepared district maps showing maintainable feeder roads, thereby enablingaccurate annual estimates of required routine and recurrent maintenance funding needs pga istrict.Routine and recurrent feeder road maintenance funds will have to be provided by Central Governmentbudget allocations and, increasingly in future years by contributions towards sustainable feeder roadmaintenance from the districts' own financial resources. Road Fund resources are mainly used ascounterpart funding for rehabilitation and periodic maintenance operations.

3.33 Funding Stragy. Annex 3-13 contains an anticipated financing plan for the 1992-1999 civil works program. The lUrgest financial uncertainty relates to the availability of sufficientfunds for recurrent and routine maintenance. DFR has until now expected to complement the GOGbudget for recurrent expenditures with voluntary contributions from the communities, withunsatisfactory results, since voluntary contributions for recurrent and routine maintenance have beenvery small in recent years. Sustainable financing sources for recurrent and routine maintenance haveto be secured from Central Government and from the individual districts and matched to the proposedrehabilitation and regravelling (periodic maintenance) programs. The recent surge in externalfinancing for capital investments such as rehabilitation and periodic maintenance requires proper andtimely coordination among present and future donors. IDA will assist the Government in this effort.

IV. THE PROJECT

A. Projact Objectives

4.01 The project is consistent with the IDA-supported MTADS and TRP projects and willcomplement and reinforce the objectives of the ERP. The aim of the project is to assist Ghana'seconomic recovery by:

(a) providing improved feedez r 3ad access to transport agricultural produce andagricultural inputs to and from farms or villages and nearby markets and therebyincreasing food and cash crop production;

(b) improving mobility and economic opportunity for the rural poor; and

(c) improving the institutional capacity of DFR to sustain the feeder road program overtime and to ensure the maintenance of the rehabilitated road network.

B. Project Description

4.02 The main thrust of the 1992-99 national feeder roads development program is toselectively improve and expand the feeder road network, and to improve maintenance management.An initial four-year time slice has been identified, but may be amended from time to time to ensurethat all sub-projects meet agreed selection criteria. Proposed project components are:

(a) full rehabilitation of 2,500 km of feeder roads in 16 selected road areas with high andmedium agricultural potential;

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(h) regravelling of 2,850 km of feeder roads which were rehabilitated since 1983 and arenow under maintenance;

(c) construction of up to 5,000 culverts including spot improvements on some 720 km ofselected feeder roads to provide minimum access;

(d) road maintenance and workshop equipment and tools and spare parts;

(e) consultant services for engineering design and contract supervision for (a), (b) and (c)above and for an organization and management study; a maintenance performancebudgeting system development; and a socio-economic impact study;

(f) technical assistance to support DFR in contract management, road planning, roadmaintenance and equipment maintenance/repair operations;

(g) overseas training for DFR staff and support for the Koforidua labor-based trainingschool;

(h) support to the local contracting industry including assessment of industryperformance; provision of training, and light equipment for labor-based contractors;

(i) rural mobility and environmental improvements and assistance to NGOs and women;and

(3) DFR decentralization support to develop and test a district-based routine maintenancesystem on feeder roads involving local communities.

4.03 Rehabilitation of Feeder Roads (2,500 kwm. The project will cover the first four yearphase (mid-1992 to mid-1996) of the 7 year NFRDP (mid-1992 to mid-1999) and will provide fundsfor full rehabilitation of 2,500 km of feeder roads, mainly in the 16 selected high and mediumagricultural potential road areas (see map). The rehabilitation works will be carried out using capital-intensive contractors for 1,500 km through IDA, OPEC and COG funding, and labor-intensivecontractors for 1,000 km through USAID and DANIDA financing, applying ICB and LCBprocurement procedures. Out of the 2,500 km of feeder roads, 560 km were selected earlier and arebeing designed under TRP-1 funding. Selection of these roads took place prior to the adoption of theselection criteria; therefore, some of the road links fall outside the 16 selected high priority roadareas. Since all roads proposed for full rehabilitation under the project have ERRs above 10% 2/,those outside the priority road areas are packaged as the phase-i roads of the project. The selectionof additional 1,140 km, constituting phase-2 feeder roads, has been completed and engineering designhas started under PPF and a Japanese grant and is expected to be completed in the first quarter of1992. Feeder road selection for the remaining 800 km (phase-3 roads) is presently underway. TheBank will review and approve the engineering designs of the feeder roads.

2/ Investments with ERRs estimated as low as 10% based on quantifiable benefits have beenincluded in the project since large, unquantifiable benefits are typically associated with feederroad development and are likely to raise estimated ERRs substantially.

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4.04 Feeder roads in high rainfall areas such as the Western Region exhibit very fast ratesof deterioration making frequent and costly rehabilitation and heavy maintenance a necessity. Duringnegotiations, agreement was reached on the tarring of selected feeder roads in high rainfall areas on apilot basis, provided the roads selected are economically viable. This will enable comparison ofperformance, durability and maintenance needs of bitumen-surfaced feeder roads with the traditionalgravel-surfaced feeder roads. The project contains sufficient funds for tarring some feeder roads onan experimental basis.

4.05 hRegr ling of Feeder Roads Rehabilitated since 1983 (2,85k. A total of 2,700km of feeder roads has been rehabilitated between 1983 and the end of 1990. This total will increaseto 3,600 km by the end of 1991 when on-going rehabilitation works are completed. Rehabilitatedfeeder roads require regravelling on average every 6 years. In the past, regravelling requirementswere not fully met due to deficient maintenance management and financial constraints. As thenetwork of rehabilitated feeder roads expands, the backlog of regravelling needs will increase, leadingto more deterioration of rehabilitated roads. Th brefore, an expansion in rehabilitation can be justifiedonly if the follow-up regravelling requirements can be met.

4.06 To reverse the present trend, the project will provide funds from IDA, OPEC,USAID, DANIDA and GOG for regravelling of about 2,850 km of feeder roads during the 1992-96project implementation period. All regravelling works will be carried out through ICB and LCBcontracts. The project will also provide funds from IDA for routine road maintenance equipment,while GOG will provide funds for the execution of routine and recurrent maintenance from its budget.Routine maintenance activities such as grass cutting, ditch and culvert cleaning will mostly be carriedout using single man contractors (SMC) for 3 to 5 km road stretches (length-man system ofcontracting).

4.07 Culverting ana Spot Improvement. The 7 year NFRDP aims at rehabilitating some8,400 km of priority feeder roads out of the total 21,300 km of feeder roads in Ghana. This wouldnormally imply that low priority areas could not be considered for full rehabilitation of feeder roads.However, to enable increased agricultural production in these areas as early as possible, it wasdecided to provide interim low standard roads by carrying out culverting and spot improvement worksat minimum cost for roads which could not be covered under the 7 years program. The feeder roadsfor culverting and spot improvement will be selected according to criteria to be agreed by DFR,USAID and IDA. The types of work to be done will be limited to providing minimum access so thatagricultural produce can be transported to markets at reasonable cost. Up to 5,000 culverts with spotimprovements on some 720 km will be financed by USAID.

4.08 Road Maintenance and Workshop Equipment. Tools and Spare Parts. DFR willcontinue to carry out by force account (MOREMAT units) most of the pothole filiing, spot patchingand recurrent blading operations. DFR will soon have enough motor graders and operators to carryout recurrent maintenance works on a larger scale. The MOREMAT units are making valuablecontributions to feeder road improvements and are considered the most efficient way to executerecurrent maintenance. DFR needs limited additional equipment such as tippers for long distancehaulage and farm tractor-trailer units for short distance haulage of gravel; 4-wheel drive vehicles andmotor cycles for field supervisory staff; workshop and training equipment; road maintenance andworkshop tools; spare parts for both existing and new equipment, and mobile radios and officeequipment. These items will be financed by IDA. The list of equipment and vehicles to be financedunder the project has been developed by DFR and agreed by IDA. Annex 4-1 contains a descriptionof DFR's equipment status.

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4.09 CQnS e s The project will provide funds through IDA and a Japanesegrant for engineering design (200 m/m) and supervision of contracts (230 m/m) for all rehabilitationand maintenance works. For design work, international firms have been encouraged to form jointventures with local and foreign firms. A contract management specialist (56 m/m) will support DFRin project procurement and implementation through IDA financing. During negotiations, it wasagrcA that appointment of the contract management specialist will be a condition of crediteffectiveness. DFR's institutional capacity will also be strengthened through (i) execution of anorganization and management study under Japanese grant funding (18 m/m) (AnnexA Ž, and (ii)development of a maintenance performance budgeting system though DANIDA financing (30 m/m)(Anne . For the lattr, the project will finance consultant services for systc.m development,system testing in pilot road areas, countrywide implementation of the system, and for training DFRstaff in system application. Funds will also be provided for a socio-economic impact study (27 m/m)through IDA funding which will monitor and evaluate the impact of rehabilitated feeder roads onagricultural growth and rural mobility (Annex 4-4J.

4.10 During negotiations, it was agreed that project support through the existingmanagement unit within MRH will be provided, specifically through two qualified accountants toassist DFR in carrying out all financial aspects of project implementation. It was also areed, thatappointment of these two accountants will be a condition of credit effectiveness, Project support byMRH will be financed by IDA. The management unit within MRH exists since 1985 and presentlyconsists of a projects manager cum procurement specialist, a financial manager, other accounting andsupport staff and a number of counterparts. The unit is being financed under the ongoing TRP-2.

4.11 Technical Assistance to DFR. Over the past three years, DFR's annual work load hasexpanded, placing a heavy burden on its institutional capacity. This burden will continue over the 4year period of the project. Annex 4-5 contains recommendations for DFR's organization. Annex 44describes DFR staffing requirements. Institutional development requires time, hence the project willhelp to bridge the shortfall in institutional capacity by providing technical assistance throughDANIDA funding in the areas of (i) mechanical engineering (2x24 m/m); (ii) feeder road planning(24 m/m); (iii) feeder road maintenance (24 m/m); and (iv) computer systems analysis (24 m/m).This technical assistance will be supplemented by United Nations Volunteers (UNV) (5x24 rn/m) whowill support DFR's organization as field civil engineers.

4.12 Training for DFR and Local Contractors. Training for DFR and capital-intensivecontractors will be provided at GHA's Central Training Center (CTC), its Road Training andProduction Unit (RTPU) and its Mechanical Training and Production Unit (MTPU). These units arebeing expanded and staffed under TRP-2. Annual training programs are being developed by CTCwhich will integrate training requirements of GHA, DFR, DUR and local capital-intensive roadcontractors. Coordination of the CTC training program among the road agencies has already started.Training for labor-intensive contractors will continue and be intensified at DFR's Koforidua trainingschool which is already established and achieving excellent results. To strengthen the training effort,the project will fund the construction of a new school building and dormitory, training equipment andaids (through USAID) and an ILO labor-based training specialist (30 m/m) (through IDA funding).

4.13 As part of the institutioDal development, it is important to expose DFR's engineers,economists and high level technicians to modern technology, planning and programming, execution ofroad works, contract supervision and quality control. Based on the good results achieved underGHA's overseas training program, the project will fund (through USAID) up to US$0.76 million inoverseas training for selected DFR staff comprising participation in seminars, short academic andpractical courses, and graduate degree courses (Annex 4). Under the technical assistance services

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to be financed under the project, mainly through DANIDA, DFR staff will also receivecomprehensive on-the-job training. DANIDA has ensured that TOR for the required technicalservices wIll fully address the training part of the assignments.

4.14 Local Construction Industry Support. About 40 domestic contractors, who arepresently executing the major portion of GHA's regravelling and resealing works under the ongoingTRP-1 and TRP-2, were provided funds during 1985-88 for purchase of equipment and spare partsunder an on-lending arrangement though BHC under the Bank financed RRMP (Fourth HighwayProject). Contractor performance is still being adversely affected because of lack of managementskills; the inability to employ experienced field and office staff; and deficient field work planning andprogramming. To address these problems, the project will fund a construction industry assessmentand development study under Japanese grant funding (18 in/m) (Annex 4-8) to assess the constraintson the industry, and to recommend measures to be taken by GOG and the donors to improvecontractor performance. Given the size and urgency of domestic contracting problems this study willbe executed during the first project year. To guarantee follow-up to the study, the project mid-termreview will decide on actions based on study recommendations which would be taken during thesecond part of the project and the proposed second feeder roads project.

4.15 DFR, assisted by IDA, UNDP and ILO, has trained and equipped 25 labor-basedcontractors. Each of these 25 contractors is able to rehabilitate 25 km of feeder road per year. Thiseffort by DFR has supported the implementation plan set out for the project. DFR is presentlytraining an additional 22 labor-based contractors and upon completion of the training, the contractorswill need financial support for light labor-based equipment. The project will fund this equipmentthrough USAID and DANIDA for the labor-based contractors on terms and conditions to berecommended by the domestic contracting industry study up to a total of US$4.2 million. The cost toequip one labor-based contractor s estimated at US$180,000.

4.16 Rural Mobility and Environment. The project will target poverty alleviation in ruralareas through the provision of seed money to NGOs and cooperatives, to be used for starting hire-purchase schemes for non-motor 'vehicles. This will reduce headloading and increase ruralproductivity and income. The in,tial funding will provide a revolving fund through DANIDAfinancing for NGOs and cooperatives. Details of the operation of the revolving fund will bedeveloped by DANIDA and DFR be' "re DANIDA funds will become effective. These hire-purchaseprograms which are to be modelled ( a program currently run by the Amasachina NGO in Tamaleand another NGO initiated by MLG will provide a long-term revolving fund for bringing moreintermediate means of transport (IMIT) vehicles into the rural transport system. The initial proposal isto supply some 40 sets of cycles, trailers and farm vehicles, in two tranches to each of 100 NGOs andcooperatives in Brong-Ahafo, Volta and Northern Regions at a cost of US$1.8 million.

4.17 Another poverty component will be the planting of fruit trees alongside selected feederroads (some 600 kIm) by NGOs and funded by USAID and DANIDA. Planting will be back of theditch and not in the road side. NGOs will, on a contract-basis, do both the initial planting and itsafter-care (about US$2.0 per seedling includ;ug its after-planting care). This will improve theenvironment and provide income from fruits and regular harvest of firewood. The project will rIsofinance (through DANIDA) promotional campaigns for (i) an increased participation of women infeeder road rehabilitation and maintenance, so as to enhance income-earning opportunities for women;and (ii) raising environmental awareness in feeder road maintenance such as erosion control andprevention, ultimately leading to environmental improvements. Cooperation with NGOs andcooperatives will be needed to implement these campaigns. Details of the rural mobility andenvironmental measures are given in Annex 4-2.

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4.18 DFR Decentralization Suport. A DFR decentralization support component funded byIDA is intended to provide assistance for analysis, experimentation and implementation concerning (i)the decentralization of DFR; (ii) the development of apprGpriate administrative and financial capacitiesin the district governments; and (iii) the negotiation of appropriate relationships between DFR and thedistrict governments. Specific activities of this component will include:

(a) Execution of short studies of actual and potential institutional arrangements for routinefeeder road maintenance in up to eight pilot districts during the first W2 years of theproject. These studies will examine the incentives needed for individuals andcommunities, under varying institutional arrangements, to (i) maintain feeder roadsand (ii) contribute funding for routine maintenance of feeder roads;

(b) Monitoring of the flow of routine maintenance funds to and from districts andproducers of road maintenance in order to insure that road maintenance funds are usedfor the intended purpose;

(c) Improvement of district maintenance planning for feeder roads;

(d) Improvement of district financial management and accounting capabilities;

(e) Facilitation of development and implementation of mutually supportive projectplanning and control processes in DFR and participating districts;

(f0 Assistance to districts with identification and negotiation of sustainable institutionalarrangements for feeder road routine maintenance; and

(g) Monitoring and evaluation of alternative institutional arrangements for routine feederroad maintenance.

4.19 The DFR decentralization support component will comprise 144 n/ni of localexpertise and 12 m/m of foreign technical assistance. The latter will be filled on an intermittentconsulting basis. The major task of the decentralization support team will be to assist the project indesigning and conducting the program of research, experimentation and analysis of institutionalarrangements for routine feeder road maintenance in up to eight pilot districts which will be selectedimmediately following project effectiveness. The foreign consultant will assist in the analysis of theresults of the various studies and experiments as appropriate. The consultant will also be called uponto assist with the identification and design of appropriate administrative and financial trainingcurricula for those involved in the routine maintenance process.

4.20 As part of the project mid-term review scheduled for end-1994, an in-depth reviewand assessment of the results which would be achieved during the first two project years will beundertaken regarding the proposed organization and finance scheme outlined in para. 4.18 (a) to (g)above. Revision or redesign of the proposed systems might become necessary at that time.Annex 4-1 describes alternative institutional arrangements for district-based routine maintenance onfeeder roads while Annex 4-11 summarizes an assessment of the district resource mobilizationpotential.

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C. Protect Cost and Financing

4.21 The estimated total c st of the project amounts to US$106.0 million (including taxes,physical and price contingencies) with a foreign exchange component of US$50.3 million equivalentor 47 percent of total project cost. Import duties and taxes on the project related imports areestimated at US$6.7 million equivalent. Costs have been estimated at mid-1991 prices, and at anexchange rate of US$l = 375 cedis. Costs include physical contingencies tailored to each projectcomponent, averaging 10% of base cost. Price contingencies have been derived from the followingassumed rates of price increase: foreign prices 2.5% in the second half of 1991, 1.8% in 1992, 1.9%in 1993, 3.8% in 1994, 4.9% in 1995 and 4.2% in 1996; local prices 10.0% in the second half of1991, 8% in 1992 and 5% per annum in 1993-1996. The exchange rate is expected to be adjusted toreflect differences between the international and domestic rates of inflation.

4.22 Cost estimates for feeder road rehabilitation works are based on recent LCB and ICBcontracts, and on average amount to US$10,000 per km for labor-intensive LCB; US$18,000 per kmfor capital-intensive LCB and US$23,000 per km for ICB contracts, depending mainly on the amountof earthworks involved. The cost of regravelling is estimated at US$7,500 per km based on recentGHA contracts and adjusted for differences in design standards between trunk and feeder roads. Forequipment, tools and spare parts mid-1991 prices were estimated from 1990 purchasing cost.

4.23 Project cost and financing plan are summarized in the table below with details inAnnexes 4-12 and 4-13, respectively.

Summary Project Cost and Financing Plan(US$ million)

TOTAL IDA GOG USMD DANIDA OPEC JAPANCOST

A. Feeder Road Program

1. Feeder Road Rehabilitation 51.4 31.6 5.2 6.0 6.2 2.52. Feeder Road Regravelling 26.0 13.9 2.4 4.7 2.4 2.53. Culverts/Spot Improvements 6.2 - - 6.1 - -4. Maintenance & Workshop Equip.,

Tools & Spares 4.7 4.5 0.2 - -5. Design and Supervision 1 Q.I - 1.0

Subtotal Feeder Road Program 91.2 L2 1 6.8 LN 5.0 1.

B. Institutional SuXort Program

1. Management Line Positions 1.3 1.3 - - -2 Technical Line Positions 1.8 - - - 1.83 United Nations Volunteers 0.2 0.2 - -4. Studies 0.9 0.1 - - 0.5 - 0.35. Training 1.5 - - 1.5 - - -6. Construction Industry Support 5.1 - 0.3 2.5 2.0 - 0.37. Rural Mobility and Environment 2.4 - 0.1 0.2 2.1 -8. DFR Decentralization Support LA -J 0 1 - _ _

Subtotal Inst. Support Program 14 8 4.2 6.4 0

Total Project Cost 55.0 L4 15 0 6Q i6

Note: Figures Rounded

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4.24 IDA will finance US$55.0 million equivalent, or about 55% of total project cost (excludingduties and taxes). During negotiations, agreement was reached that Government will ensure sufficientannual budgetary allocations for its counterpart contribution from the road fund and its budget to thecosts of the project, the said contribution being estimated by the Borrower and the Association toamount, in the aggregate, over the project period to US$8.4 million equivalent (8% of total project-related cost). It was also agreed that the Borrower will furnish, through DFR, to the Association forits review, thra months prior to the start of the respective period, the annual and quarterly estimatesof project expenditures, including the required counterpart funding by the Borrower. In addition, iawas agreed that the Government will deposit into DFR's account before the end of each quarter,starting in fiscal year 1993, the Borrower's contributions to the financing of the project as set forth inthe quarterly estimates referred to above. Agreement was also reached that, as a condition of crediteffectiveness, the Borrower will deposit into DFR's account in Cedis the equivalent of US$300,000 asits counterpart contribution to the financing of the project for fiscal year 1992.

4.25 Cofinancing agencies will cover US$42.6 million equivalent or 40% of total projectcost. USAID and DANIDA will finance US$21.0 million and US$15.0 million, respectively, underparallel financing arrangements. The OPEC Fund has assured the Bank that it will contribute US$5.0million under joint financing. A Japanese Grant Fund amounting to US$1.6 million has been madeavailable to finance engineering design and other urgent technical studies. The Bank will administerthis grant. Cofinavcing negotiations are at an advanced stage and are expected to be completed at thetime of credit effectiveness. USAID participated in the appraisal mission. DANIDA will carry outappraisal of its project components in November 1991. Project components were packaged duringappraisal based on discussions with DFR, USAID and DANIDA (through Danish Embassy staff), andallocations of funds to project components were agreed. OPEC funds will be used for feeder roadrehabilitation and regravelling works only.

4.26 In addition, GOG is expected to contribute US$12.7 million equivalent over fouryears (1993 to 1996) from budget allocations for financing of feeder road routine and recurrentmaintenance activities in the 110 districts. These expenditures are not part of DrQject-re1atgd cost butform part of the 7 year feeder road development program. Recurrent and routine maintenance fundsincrease the Government contributions under the project to 18%. During negotiations, asurancfrom the Government was obtained that sufficient annual budgetary allocations will be made for therecurrent and routine maintenance of feeder roads in its budget in line with the agreed upon fundingschedule for the 1993-1996 period, namely the equivalent of US$1.87 million in fiscal year 1993, theequivalent of US$2.75 million in fiscal year 1994, the equivalent of US$3.61 million in fiscal year1995 and the equivalent of US$4.48 million in fiscal year 1996.

4.27 DFR will be provided with the necessary funds at the beginning of each quarter.During negotiations, Government agreement on the following detailed GOG funding schedule forroutine and recurrent feeder road maintenance was obtained:

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Period Year 1: Year 2: Year 3: Year 4:Activity CY 1993 CY 1994 CY 1995 CY 1996

Rout. Maintenance Funds per Year US$0.84m US$1.15m US$1.45m US$1.76mRout. Maintenance Funds per Quarter US$0.21m US$0.29m US$0.36m US$0.44m

Rec. Maintenance Funds per Year US$1.03m US$1.60m US$2.16m US$2.72mRec. Maintenance Funds per Quarter US$0.26m US$0.40m US$0.54m US$0.68m

Total Maintenance Funds per Year US$1.87m US$2.75m US$3.61m US$4.48mTotal Maintenance Funds per Quarter US$0.47m US$0.69m US$0.90m US$1.12m

4.28 The focus of the maintenance program will be on routine maintenance operations suchas grass/bush cutting, ditch and culvert cleaning, and pothole/spot patching on maintainable feederroads. These activities require less funds than recurrent maintenance activities (about 70 percent).Recurren. maintenance consists of (i) blading by contract of maintainable feeder roads, and (ii) heavyreshaping by force account of lower priority feeder roads to obtain basic access. These latter roadsare not under regular maintenance and are not part of the maintainable network. In the event of localmaintenance funding constraints, shortfalls should only effect recurrent maintenance and specificallyreshaping by force account. If necessary, these operations could be suspended, delayed or reducedwithout negatively affecting essential routine maintenance of maintainable feeder roads. Routinemaintenance funding requirements for the 1993-1996 period come to US$5.2 million equivalent only.

4.29 Road fund transfers to DFR have increased substantially in recent years and will reachabout US$3.5 million equivalent in 1991. This wouid yield some US$15.8 million equivalent for themid-1992 to end-1996 project period if the 1991 funding level were kept constant. However, thisfunding level is likely to be increased. Central budget transfers to DFR reached on average US$1.4million equivalent in recent years and would yield US$6.3 million for the project period if thesefunding levels were kept constant. The estimated total of US$22.1 million equivalent from the roadfund and central budget for the mid-1992 to end-1996 period compares favorably with project andprogram counterpart funding needs of US$21.1 million equivalent for the same period. LowerGovernment transfers to DFR in the past reflected more the lack of proper maintenance planning andbudgeting on behalf of DFR, rather than the ability of Government to provide sufficient funds forfeeder road maintenance.

D. Proet Design and Implementation

4.30 A thorough assessment of past and ongoing road projects in Ghana was conducted andhas resulted in the identification of a number of key lessons leari. These were subsequently used asimportant linkages for the design of this operation. Previous road projects tended to be primarily'rehabilitation-driven", without paying enough attention to systematic maintenance organization,funding and capacity building. This operation has been designed as a "maintenance-driven" projectwhich concentrates on: (i) the development of a maintenance culture in Ghana's feeder roads sub-sector, and (ii) the linkage of execution of road works with the establishment of a sustainable feederroad maintenance management system.

4.31 The approach taken links maintenance planning, design, programming, budgeting andworks supervision with: (i) an institutional capacity building program, and (ii) appropriatemechanisms of works execution relying nearly exclusively on private contractors, and comprising fullrehabilitation, periodic maintenance (regravelling), recurrent maintenance (blading), spot improvement

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and culverting, and routine maintenance in an integrated analysis framework. Other principal lessonslearnt from previous operations indicate the need for: (i) detailed scheduling of procurementprocessing and project implementation; (ii) frequent project supervision and annual implementationreviews; (iii) definition and usage of monitorable targets in assessing project progress; (iv) mid-termreview to adjust project design; (v) time-bound action program for institutional strengthening of theimplementing road agency; and (vi) reliance on an adequat mix of capital-intensive and labor-basedprivate contractors for works execution.

4.32 Procuremcnt and Proiect Implementation Schedule. A detailed schedule forprocurement processing and project implementation including start and completion of engineeringdesign and supervision of works, award of contracts for civil works and goods under ICB and LCB,and technical assistance, studies and DFR staff and contractor training was prepared and agreedduring project appraisal. This schedule has been computerized at DFR to serve as a projectmonitoring instrument which will measure project progress to assist DFR and Bank supervisionmissions. It will be updated regularly to keep up with project events and has already been refinedtwice since project appraisal. Given the level of detail and size of this schedule, it has been placed inthe project file. Annex 4-14 contains a summary of the schedule.

4.33 The project is scheduled for completion by the end of 1996. This is consideredfeasible since Ghana's road agencies have demonstrated in the recent past good capacity to undertaketimely road project implementation. DFR has already developed appropriate know-how in processingprocurement following Bank procurement guidelines under the RRMP and TRP-1, and the roadcomponent of the Cocoa Rehabilitation Project. Given this experience, the processing of contracts isexpected to be handled on a timely basis. Also project preparation is in an advanced stage.Implementation of USAID financed feeder road works is scheduled to start in December 1991.During negotiations, it was aereed that retroactive financing up to US$2.0 million equivalent will beallowed under the IDA credit, on account of eligible payments made after January 1, 1992. It isexpected that selected feeder road rehabilitation and regravelling works following LCB procurementprocedures will be awarded not later than early January 1992.

4.34 Frequent Implementation Reviews. Annex 4-15 shows the project supervision planwhich covers the period from June 1992 to February 1997. Three supervision missions per year havebeen scheduled, i.e. in February, June, and October. Annual implementation reviews were agreedamong IDA, USAID, DANIDA and DFR at the time of project appraisal. These reviews will takethe form of extensive supervision missions (scheduled for June of each project year) to ensure that theprincipal financing agencies and DFR: (i) properly coordinate all project-related activities; (ii)exchange views on all project issues of common concern and/or interest; and (iii) resolve outstandingproblems which hamper project implementation. The first such mission, with USAID and DANIDAparticipation is scheduled for June 1992 and will take the form of a project launch workshop.

4.35 The annual implementation reviews will also evaluate the adequacy of routine andrecurrent maintenance funding through Goverment sources as agreed during negotiations (paras. 4.26and 4.27). These maintenance funding and expenditure reviews will be linked to (i) the agreedpreparation of annual estimates of project expenditures by DFR (para. 4.24), and (ii) the timing ofGovernment budget preparation. Central Government's budget is prepared during the period fromOctober to December which is well after the annual project implementation reviews scheduled forJune/July. Given that this project is the first free-standing IDA operation for DFR, it is considered tobe supervision-intensive. Adherence to the proposed supervision plan will therefore be a strictrequirement for smooth project implementation and timely disbursements of project funds.

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4.36 Monitorable Tar. Annex 41 contains a monitoring matrix against whichimplementation performance of the project will be monitored. A set of performance indicators andmonitorable targets was derived from the detailed schedule of procurement processing and projectimplementation and UFS&d during negotiations. For monitoring purposes the project was divided into8 components: (i) physical works in 3 phases for rehabilitation; 4 phases for regravelling; and spotimprovement/culverting; (ii) studies; (iii) implementation of study recommendations; (iv) institutionalsupport; (v) staffing; (vi) training; (vii) budgeting and expenditures; and (viii) disbursement of IDAproceeds. The monitoring matrix has been desigined such that DFR and Bank supervision missionswill use it as an additional tool for project management. Achievements will be evaluated for year 1and 2 of the project by June 1993 and 1994, respectively, coinciding with the annual projectimplementation reviews. The project mid-term review at the end of 1994 will define monitorabletargets for the remainder of the project (1995-1996). Adherence to legal covenants will be verifiedindependently of the deadlines given in the monitoring matrix.

4.37 Project Mid-Term Review. During negotiations, it was apreed that a thorough mid-term project implementation review involving IDA, USAID, DANIDA, OPEC and variousGovernment agencies (MRH, MA, MLG, MFEP, EPC, DFR) will be carried out not later thanDecember 31, 1994. This review will evaluate and assess: (i) overall progress made in projectimplementation during the first two project years; (ii) performance of DFR as executing agency forthe project; (iii) the adequacy of the Borrower's counterpart funding as well as the level of budgetaryallocations and actual expenditures for routine and recurrent maintenance ; and (iv) the need forredesign and/or restructuring of project components with implementation difficulties, including asnecessary drafting of an action plan to be carried out until project completion. In addition, the mid-term review will: (i) assess the results and recommendations of completed studies, ongoing technicalassistance and training programs; and (ii) agree with the borrower on implementation of findings.This review would relate specifically to: (i) the organization and maintenance study; (ii) themaintenance performance budgeting system development; (iii) the domestic contractor assessment anddevelopment study; (iv) the institutional arrangements for district-based routine feeder roadmnaintenance; (v) DFR staff and domestic contractor training programs; (vi) progress of the ruralmobility and environmental component; and (vii) monitoring and evaluation studies of feeder roadimpacts on agriculture and the rural economy.

4.38 Action Program for Institutional Strengthening. A detailed time-bound actionprogram for the institutional strengthening of DFR has been formulated and is shown in Annex 4-17.DFR will be the primary implementing agency for all components of the project, with the exceptionof the rural mobility and environmental component which will be implemented by selected NGOs andcooperatives through bilateral funding. All civil works, supply of goods, and consulting servicesunder the project will be implemented by DFR. It will be assisted by (i) one specialist in a lineposition for contract management; procurement; and compilation of data and preparation of projectcompletion report (PCR), and (ii) the existing management unit in MRH through two qualifiedaccountants in cost accounting; disbursement; and preparation of quarterly and annual progressreports. The contract management cum procurement specialist has already been selected and will starthis assignment in April 1992. Selection of the two accountants, to be located in MRH is underway.

4.39 DFR will also be supported by five specialists in technical line positions to be engagedin the fields of feeder road planning and programming, maintenance management, operation ofmechanical workshops, systems analysis and training. These technical assistance specialists will befinanced by DANIDA. Terms of reference for these positions have been prepared by DFR and willbe reviewed and agreed during DANIDA's appraisal of its project components in November 1991.IDA will also review and agree upon these TOR to ensure full compatibility with technical assistance

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components financed by other cofinanciers. On the road area and district levels, DFR will be assistedby jiyv civil engineers from the UNV service. All engineering design and contract supervisionservices will be carried out by local and international consultants financed under the project.

4.40 Mix of Capital-Intensive and Labor-Based Private Contractors. The feeder roadrehabilitation works will be executed using (i) international and the largest domestic contractors forfeeder roads packaged into large contracts following Bank ICB procurement rules; (ii) smallerdomestic capital-intensive contractors for individual short length feeder roads which cannot bepackaged into large contracts due to their geographical distribution following LCB procurement rules;and (iii) labor-based contractors which have been trained by DFR for rehabilitation of annual 25 kmlong feeder road sections where road side material is suitable for formation level construction andsurfacing material is available within a 5 km hauling distance, also following LCB procurement rules.Regravelling works will be packaged to the extent possible in large lots, suitable for ICB while shortlength road links which are geographically scattered will be packaged for LCB. Routine maintenancesuch as ditch and culvert cleaning and grass/bush cutting will be done by contract mainly using SMCswhich have been successfully introduced by GHA on a large part of the trunk road network. DFRwill continue to carry out recurrent maintenance activities such as pothole/spot patching and heavyblading works with its MOREMAT units. Equipment needs for the force account operation will besupported under the project and financed by IDA.

E. Status of Project Preparation

4.41 Preparation of physical works components is in an advanced stage as follows:

(a) Selection of Feeder Roads:

(i) Some 560 km of feeder roads have been selected. These will constitute phase-1 of the physical works program of the project (see map).

(ii) Phase-2 feeder road selection, under PPF funding, of 1,140 km in 8 priorityroad areas has been completed (see map).

(iii) Selection of the remaining 800 km (phase-3) in 8 additional priority road areasis presently underway. This work is expected to be completed by December1991.

(iv) Selection of 50% of 2,850 km of feeder roads for regravelling, constitutingthe regravelling program for the first two project years, will be completed byDFR before Board presentation. The second batch will be selected during thesecond year of the project.

(b) Engineering Design and Preparation of Bidding Documents:

(i) Preliminary engineering designs for the 560 km of phase-I feeder roads werereviewed by the appraisal mission and final design is now underway. Thiswork is expected to be completed in December 1991.

(ii) TOR, LOI, draft contract agreements and shortlists of consultants forengineering design of the 1,140 km of phase-2 feeder roads have been clearedby the Bank. Proposals from shortlisted consultants have been invited and

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engineering design consultants are scheduled to start work in December 1991.They will also prepare bidding and contractor pre-qualification documents.Engineering designs will be completed by mid-1992.

(iii) Engineering design for the remaining 800 km of phase-3 feeder roads isscheduled to start by April 1992 for completion within 8 months.

(iv) Engineering design for the 1992/93 regravelling works will be done byconsultants to be selected before then end of 1991. The Bank has clearedTOR, LOI, and draft contract agreements.

F. Procurement

4.42 Procurement arrangements are summarized as follows. Annex 4-18 contains adetailed procurement table.

Amounts and Methods of Procurement(IDA shares in parentheses)

(US$ million)Parallel

Ea£1 Component ICB LCB Other Shopping Financing Total

1. Civil Works 44.29 13.80 25.74 83.83(38.53) (6.97) (45.50)

2. Equipment, Spare 4.21 0.51 4.19 8.91Parts, Vehicles & (3.97) (0.48) (4.45)Materials

3. Technical Assistance 2.24 2.70 4.94and Studies (1.60) (1.60)

4. Engineering, Training 4.57 3.77 8.34& Other Support (3.45) (3.45)

Total Project 48.50 13.80 6.81 0.51 36.40 106.02IDA (42.50) (,. (5.7 (55.Q0)

4.43 Bank financed feeder road rehabilitation and regravelling works will be packaged in lots forICB contracts. They will provide opportunity for domestic contractors to participate in individual lotswhile large international contractors can bid for combinations of lots for which they are prequalified.Eligible domestic contractors who bid for works contracts under ICB will receive a 7'h percentpreference in bid evaluation. Short lengths of feeder road rehabilitation and regravelling works whichsre dispersed in remote locations (see map) and which are difficult to package for ICB will beprocured by LCB acceptable to the Bank. The engineering design consultants will package feederroads into ICB and LCB contracts, and the Bank will review the packaging. LCB contracts will rangein size around US$0.6 million. The aggregate value of LCB contracts will be US$14.0 million ofwhich IDA will fund up to US$7.0 million. Maintenance equipment, non-proprietary spare parts,

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vehicles and tools estimated to cost US$4.2 million will be procured through ICB. Office equipment,training aids, items of minor spare parts and handtools, and proprietary items will be packaged intosimilar lots not exceeding US$50,000 and procured through international shopping (with a minimumof three quotations), up to an aggregate value of US$160,000. Also, mobile radios will be procuredthrough international shopping as these requirements are of varied nature, and availability of after-sales services is a pre-requisite. The aggregate value for these will not exceed US$350,000. TheBank will review the need for the use of shopping procurement procedures.

4.44 DFR is the principal implementing agency responsible for carrying out the project,including all procurement, with assistance from the management unit in MRH. This is the first freestanding feeder roads project and seventh in the road sub-sector in Ghana, and DFR staff hasbenefitted from technical assistance provided in the earlier projects. Up to four DFR staff memberswill be given training in procutement, through participation in the courses conducted by the GhanaInstitute of Management and Public Administration (GIMPA) and ILO. They will be retained byDFR to prepare designs, bidding documents, supervision of technical studies and construction industrysupport. Technical assistance will include project management services and engineering specialists.All consultancy contracts will be carried out in accordance with World Bank Guidelines.

4.45 The borrower's procurement practices were reviewed in earlier projects and theborrower has incorporated in the Standard Bidding Documents for works for ICB and LCB thenecessary provisions to comply with the Bank's requirements. These standard documents are basedon the Bank's Sample Bidding Document for Works and are to be used for this project. For goods,the Bank's Sample Bidding Document for Goods will be used. Procurement for packages financed byDANIDA and USAID will be according to the respective funding agency's procedures. The Bankwill act as the executing agency for OPEC-funded civil works. OPEC-funded civil works componentsto the amount of US$5.0 million will follow Bank procurement procedures for LCB and ICB, thelatter with built-in prequalification process. The detailed procurement processing and projectimplementation schedule is part of the project files from which the estimated disbursement schedulehas been derived.

4.46 During project supervision, Bank financed works contracts above a threshold ofUS$500,000 will be subject to Bank's prior review. The review process will cover about 80 percentof the total works contracts value procured by ICB and LCB. Goods contracts or packages aboveUS$ 100,000 will also be subject to prior review covering about 90 percent of total value of Bankfinanced goods. Selective post review of awarded contracts below the threshold levels will be carriedout during supervision missions. Prequalification of contractors will be done for all ICB contracts.Retroactive financing up to US$2.0 million equivalent will be allowed under the credit, on account ofeligible payments made after January 1, 1992.

4.47 Procurement information will be provided by DFR as follows: Comprehensivequarterly reports to the Bank by DFR, indicating:

(i) revised cost estimates for individual contracts, including the estimates ofphysical and price contingency allowances; and

(ii) planning information with the revised timing of procurement action, includingadvertising, bidding, contract award, and completion time for individualcontracts.

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G. isbuscm

4.48 The credit is expected to be fully disbursed by June 30, 1997. It will be disbursedagainst the following categories. The disbursement schedule (Annex 4-19) is based on the projectimplementation schedule.

Allocation and Disbursement of IDA Credit

PercentageIDA Amount of Expenditure

Catgory (US$ Million) to be financed

(a) Civil works 40.95 100% of foreign expendituresand 60% of local expenditures

(b) Equipment, spare parts, 4.00 100% of foreign expenditures andvehicles and materials 90% of local expenditures

(c) Engineering services, 4.55 100%technical assistance,studies, trainingand auditing

(d) Refinancing of PPF 0.75

(d) Unallocated 4.75

TOTAL 55.0

4.49 In order to facilitate project implementation and reduce the volume of withdrawalapplications, a special account will be opened in US$ at a commercial bank on terms and conditionsacceptable to IDA. The initial advance of US$2.0 million covers about 4 months of eligibleexpenditures financed by IDA. Replenishment requests will be submitted by DFR to IDA on amonthly basis. Each request must be fully documented except for contracts for (i) civil works lessthan US$300,000 equivalent, (ii) other goods and services less than US$50,000 equivalent, and (iii)consultancy contracts, training programs, studies and courses less than US$50,000 equivalent will bedisbursed on the basis of Statements of Expenditure (SOEs). All supporting documentation will beretained by DFR for review by periodic World Bank supervision missions and external auditors.

H. Accounting and Auditing

4.50 DFR will establish separate accounts, in accordance with acceptable accountingprinciples, to record all project expenditures and to maintain records on conmnitments,reimbursements and the status of project funds. Audit covenants under previous road projects havebeen met by the borrower. With respect to the amounts withdrawn on the basis of SOEs, DFR willmaintain records on contracts, invoices, and evidence of payments readily available for review.External auditors acceptable to the Association will carry out audits of the Special Account, projectaccounts including SOEs, and DFR accounting records, and provide long form audit reports to IDAwithin six months of the end of each fiscal year. DFR will maintain accounting, costing,

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procurement and progress report records for all project components. Local banks are adequatelyauditvi by external auditors.

I. Reporting and Monitoring

4.51 During negotiations, it was aereed that DFR will prepare and furnish to theAssociation consolidated quarterly reports on the status of: procurement and disbursements,commitments made under the project, progress on civil works, supply of goods, technical studies,institutional accomplishments, sub-sector related issues, and local currency contributions made by theroad fund and frorn the Government budget towards routine and recurrent maintenance funding. Suchreports will include reasons for any shortfalls in meeting implementation schedules and measures to betaken to make up shortfalls. DFR will update the project cost tables, monitor expenditures undereach category and assess the possible use of unallocated funds to meet cost overruns in othercategories.

J. Environmental Assessment

4.52 The project is rated as B. A thorough environmental assessment was thereforeconducted comprising both, the direct and indirect environmental impacts of feeder road rehabilitationand maintenance operations. Annex 420 contains a summary of the key results. Recommendationsof the study will be integrated into DFR's feeder road planning, design and works execution activitiesduring project implementation. To ensure mitigation of possible negative environmental impacts offeeder road works, it was agreed during negotiations that DFR will incorporate into its existing feederroad guidelines for engineering design and execution of works environmentally sound procedures,standards and practices. DFR has requested training in environmental assessment, especiallyregarding the incorporation of sound environmental principles into contractor training programs. Thiswill be provided under the project, in close cooperation with the EPC. Experimentation with thetarring of selected feeder roads, on a pilot basis, in high rainfall areas such as the Western Regionwill enable DFR to draw proper comparisons to the performance of traditional gravel-surfaced feederroads and will contribute to DFR's build-up of sound environmental know-how.

4.53 Feeder road design and execution of works in Ghana is now guided by the dualconcepts of serviceability and durability. The serviceability concept emphasizes the provision of all-weather access, independently of geometric standards, while durability is based on environmentallysound engineered and constructed feeder roads, mainly comprising adequate road surface, lateral andcross-drainage for erosion prevention. Direct environmental impacts resulting from local runoff andthe destruction of natural soil and road embankments need to be minimized using improved designmethods and the appropriate choice of rehabilitation and maintenance methods. This new approach isin sharp contrast to the traditional design speed concept. While the latter has led to over-designedfeeder roads in Ghana and elsewhere, leading to unnecessarily high geometric features and incurringhigh construction and maintenance costs, rehabilitation and maintenance works under the project willgenerally remain on existing feeder road alignments.

4.54 The project will not have significant indirect effects on the environment. To avoidsuch impacts, feeder road rehabilitation in national parks, game production reserves and sanctuaries(see map) is not included in the project. Also, new feeder road construction is nut intended. In afew cases, due to traffic safety problems, roadways will need widening and, specifically on curves,realignment to eliminate hazardous spots. Since the project intends to minimize earthworks, verticalrealignments will be held to the minimum, diminating the need for heavy excavation andembankments. In addition, it is not expected that existing land use pattern will change substantially

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due to improved accessibility. A tree planting component and labor-based road works will contributeto soil conservation.

V. ECONOMIC EVALUATION

5.01 Proiect Benefits. Feeder roads are an important part of Ghana's road network,serving an estimated 70 percent of the population who live in rural areas and depend on agriculturefor their livelihood. Feeder roads provide rural settlements with access to social services andeconomic opportunity otherwise only available in larger centers. Most importantly, feeder roadsconnect rural settlements to market centers. The poor condition of feeder roads in Ghana has been aserious constraint on agricultural production and marketing, discouraging farmers from producingbeyond the subsistence level. Feeder roads in good condition are a prerequisite for increasedagricultural production. They also (i) ensure increased accessibility to extension services; (ii) fosterdevelopment of markets; (iii) lead to a reduction in transport cost and storage losses; and (iv) enableintensified cultivation, and/or an increase in land area cropped.

5.02 Economic Rates of Return (ERRs) have been calculated for each individual feederroad selected for the first (560 km) and second (1,140 kmn) phases. For feeder roads being selectedfor the third phase (800 km), ERRs were extrapolated from phase-i and phase -2 economic analysessince data on these roads are yet to be collected and analyzed. Quantifiable benefits include: (i)increases in agricultural production, and (ii) reduction in transport costs on existing production.Estimated ERRs are high; an average of 47 percent for feeder road rehabilitation during the first andsecond phases (see Table 1 in Annex 5-1). This reflects the inherently high return in this type ofinvestment, as well as the fact that economic return criteria have been used systematically in choosingfeeder roads for rehabilitation.

5.03 Unquantifiable project benefits comprise:

(a) improved a_cess to markets, extension services and other social services;

(b) enhanced DFR institutional capacity to sustain the rehabilitation and maintenanceprogram in the future;

(c) increased rural employment, specifically for women as a result of labor-based feederroad rehabilitation and maintenance technology;

(d) improved transport services to rural communities by private freight and passengercarriers;

(e) environmental protection and improvement from improved road drainage and erosioncontrol; and

(f) alleviation of rural poverty through the project's overall impact, and through thespecially targeted rural transport component.

5.04 The project's rural mobility and environment component is designed to contribute topoverty alleviation. By relieving women of the burden of headloading their farm produce, firewood,water, etc., time will be saved and channelled into more productive activity such as cotton spinning,

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shea butter extraction and vegetable farming. Proceeds from the latter can be used to supplementtheir diet as well as increase their protein intake.

5.05 The project will generate both direct and indirect employment. Direct employmenthas been partly accounted for under project benefits in the form of induced production or valueadded. By the end of 1992, DFR is expected to have equipped 47 labor-based contractors with eachof them employing between 150 and 200 laborers daily. Based on a daily wage rate of US$1.50, thiswill mean a further infusion of wage income around US$3.6 million (equivalent to 2.5 million person-days of rural employment generated) into the rural economies of the selected road areas. Thiscalculation is based on a 4 year project period with 1,000 km of feeder roads to be rehabilitated bythe labor-intensive method. These benefits, which were not considered in the economic analysis, willbe primarily for the rural poor such as women and unemployed men.

5.06 Road Area Prioritization and Feeder Road Pre-Selection for Rehabilitation. The pre-selection of feeder roads was preceded by a road area prioritization exercise conducted jointly by MAand DFR. For each of the 32 road areas in the country, four criteria, i.e. (i) agricultural production;(ii) transport cost; (iii) population; and (iv) extent of maintenance activities on feeder roads, wereassigned weights in order to rank the 32 road areas according to socio-economic importance. Theseweights were mutually agreed upon by MA and DFR. The variables and their respective weightswere used in ranking and classifying road areas into three priority zones, e.g. high, medium and low.A detailed description of the methodology and the results achieved are given in Annex 3-6.

5.07 Following the prioritization of road areas, feeder roads in the selected high andmedium potential road areas were pre-selected using three criteria in feeder road corridors: (i)population, (ii) existence of social services, and (iii) road condition. These variables were givenweights to rank the roads according to the potential benefits. The pre-selected feeder roads were thensubmitted to the relevant District Assemblies for comment. The pre-selection methodology is alsodescribed in detail in Annex 3-6. The total length of the roads pre-selected in any particular roadarea is dependent on the overall feeder road length in that road area and the proportion in goodcondition.

5.08 A total of about 1,100 km of feeder roads were initially pre-selected for rehabilitationfor the first phase of the project, out of which 560 km in four zones covering seven districts turnedout to be economically viable and were finally selected for funding. For the second phase of theproject, out of a total of 1,900 kn pre-selected, 1,140 km of feeder roads in eight road areas covering47 districts tiurned out to be economically viable. For the third phase of the NFRRMP, a further1,540 km of feeder roads covering additional eight road areas have been pre-selected for economicevaluation. Studies are still ongoing and it is anticipated that about 800 km wil' be economicallyviable, bringing the overall length of feeder roads to be rehabilitated under the project to 2,500 km.

5.09 Evaluation Methodology. In using a producer surplus approach 2/, two majorbenefit streams were estimated: (i) increases in agricultural value added due to increases inproduction, and (ii) reduced transport costs or savings accruing to transporters on existing production.The analysis of these two major benefit streams indicates that the increases in value added are farmore important than savings accruing to transporters. Increased value added is due to the

2I As suggested in Beenhakker's "Simplified Operational Procedures for Screening andAppraisal".

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intensification of agriculture rather than expansion in area cultivated or due to improved technology.Details of the evaluation methodology are contained in Annex 5-1.

5.10 The estimates of benefits for each phase-i feeder road were based on field dataprovided by consultants from a study of four project zones in Accra/Volta, Salaga/Bimbilla, NorthWestern and Ejura/Kintampo. In each zone, feeder roads were selected representing various levels ofaccessibility. In all, 1,200 households in 24 road corridors were interviewed. Similarly, theestimates of benefits for the second phase feeder roads were based on field data collected in thefollowing road areas: Mampong, Sunyani, Techiman, Bekwai, Cape Coast, Hohoe, Yendi, Tamale,and Tumu. About 1,500 households living along both accessible and inaccessible feeder roadcorridors were interviewed. Data for econc mic evaluation of third phase feeder roads is beingcollected and analyzed following techniques used for phase-l and phase-2 roads.

5.11 Economic Return and Sensitivity. ERRs were calculated for each of 66 and 206individual road links selected for the first and second phases, respectively. Out of the first phaseroads, 42 links, with a total length of 560 kn, were considered economically viable with rates ofreturn in excess of 10 percent, adopted as opportunity cost of investment resources. For the secondphase roads, 121 links, totalling 1,140 km turned out to be economically viable. The ERRs on theselected roads ranged form 10 percent to well over 100 percent. A summary of ERRs for each roadlink in the first and second project phases is provided in Annex 5-2.

5.12 ERRs for phase-3 feeder roads were extrapolated from phase-i and phase-2 feederroads. The estimate comes to an ERR of 42 percent. Slightly higher rehabilitation cost wereassumed than those available for phase-i and phase-2 feeder roads. The ERR estimate for periodicmaintenance (regravelling) on 2,850 km of feeder roads comes to 83 percent. This estimate is highsince periodic maintenance costs are only about 50 percent of rehabilitation costs while benefitsremain high due to the continued full accessibility which regravelled feeder roads provide toagriculture and the rural economy. If other project components with unquantifiable benefits areincluded, the ovgrall project ERR comes to 44 percent (see Table 1 in Annex 5-1).

5.13 ERRs obtained for phase-1, phase-2, and phase-3 rehabilitation, for regravellingworks, and for the whole project were subjected to sensitivity analyses assuming (i) a 20 percentincrease in costs, (ii) a 20 percent reduction in benefits and, (iii) a simultaneous 20 percent increase incosts and a 20 percent reduction in benefits. Results of the sensitivity analyses are also reported inTable 1 of Annex 5-1. These indicate that project roads are equally sensitive to 20 percent costincreases and 20 percent benefit decreases. This also applies to the total project. Under a scenario inwhich benefits would decrease by 20 percent and costs would simultaneously increase by 20 percent,the ERR for the first phase feeder roads (560 km) would drop from 47 to 27 percent and as many as14 out of 42 feeder roads (33 percent) would have ERRs of less than 10 percent. Under the samescenario, second phase feeder roads (1,140 km) would be affected in a similar way; 59 out of 121road links (49 percent) would have ERRs of less than 10 percent. The decrease in ERR forregravelling works under this scenario would be even larger, from 83 percent to 33 percent.

5.14 ERR estimates of project roads are therefore highly sensitive to simultaneous costincreases of civil works and decreases in project benefits. However, a simultaneous 20 percent costincrease and a 20 percent benefit dcrease is a highly unlikely case for the following reasons: (i) civilworks base costs contain a "safety margin", in addition to the standard 10 percent physicalcontingency and design and supervision costs, and (ii) benefit estimates per feeder road links werekept conservative, in addition to substantial unquantifiable benefits. Base ERRs for individual feederroad links are high and reflect: (i) the high costs of previous feeder road construction, the benefits of

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which can be restored with relatively limited additional investment; and (ii) the serious constraint onagricultural production beyond the subsistence level posed by lack of access. Base ERRs aretherefore considered to be robust and reliable. In addition, DFR has agreed to recalculate ERRs forphase-i feeder roads as soon as actual construction costs become available. A similar exercise will bedone for phase-2 and phase-3 rehabilitation and for regravelling works. The monitoring andevaluation study will, inter alia, collect socio-economic data after completion of road works tomonitor and measure the socio-economic impact of feeder road rehabilitation. This will also allow re-estimation of benefits for selected feeder road links.

5.15 Project Risks. There are three project risks: (i) difficulties in developing a sustainablefeeder road maintenance management system; (ii) constraints in DFR institutional capacity; and (iii)increases in cost of feeder road rehabilitation works. If adequate resources from its central budgetand from district contributions are not assured by GOG to carry out sufficient routine and recurrentmaintenance, the feeder roads will fall into disrepair in a few years following the rehabilitation andperiodic maintenance investments and hence the anticipated benefits will not be realized.

5.16 The second project risk relates to DFR's limited institutional capacity. If duringproject implementation DFR would not been able to recruit the required personnel to administer thearea offices and give technical support to the districts, then this would have a negative effect onproject results. The project will be a strain on DFR personnel in view of substantial projectimplementation and supervision requirements. Also associated with this risk is the on-going processof decentralization being pursued by the Government of Ghana.

5.17 It is also anticipated that if wage rates and the price of petroleum products increase,the costs of rehabilitation and maintenance works are likely to increase proportionately. If the localrate of inflation is not controlled, it will have the same effect on the cost of civil works components.

5.18 These risks are well known and will be minimized by the following measures underthe project:

(a) ensuring that adequate funds are made available by Central Government budgetaryallocations for routine and recurrent maintenance;

(b) deliberate efforts have to be made by DFR to attract middle level professional andtechnical staff as well as technical assistance to fill critical positions; and

(c) adoption of cost effective methods of design and of payment procedures enablingprompt payments to contractors for works completed under the project is essential.Design methods and payment procedures have been reviewed and agreed betweenDFR and IDA.

VI. AGREEMENTS AND RECOMMENDATION

6.01 In addition to standard covenants, the following matters were agreed with theGovermment (MRH, DFR and MFEP):

(i) The appointnent of a deputy director of planning, not later thanDecember 31, 1992; and the establishment of some 20 new road area

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offices during the project implementation period, as needed andstarting July 1, 1992 (para. 3.08);

(ii) The expansion of DFR at the district level following Governmentdecentralization objectives by extending its technical support to thedistricts and, starting July 1, 1992, as needed the training of about 80additional foremen for the supervision of district feeder roadmaintenance activities (para. 3.09);

(iii) The tarring of selected feeder roads in high rainfall areas on a pilotexperimental basis, provided the roads selected are economicallyviable (para. 4.04);

(iv) Sufficient annual budgetary allocations for its counterpart contributionsfrom the road fund and its budget to the costs of the project, the saidcontributions being estimated by the Borrower and the Association toamount, in the aggregate, over the project period to US$8.4 millionequivalent; the Borrower will furnish, through DFR, to theAssociation for its review, three months prior to the start of therespective period, the annual and quarterly estimates of projectexpenditures, including the required counterpart funding by theBorrower; and the Government will deposit into DFR's account beforethe end of each quarter, starting in fiscal year 1993, the Borrower'scontributions to the financing of the project as set forth in thequarterly estimates referred to above (para. 4.24);

(v) Sufficient annual budgetary allocations for the recurrent and routinemaintenance of feeder roads in its budget in line with the agreed uponfunding schedule for the 1993-1996 period, namely the equivalent ofUS$1.87 million in fiscal year 1993, the equivalent of US$2.75million in fiscal year 1994, the equivalent of US$3.61 million in fiscalyear 1995 and the equivalent of US$4.48 million in fiscal year 1996(para. 4.26);

(vi) DFR will be provided with the necessary funds at the beginning ofeach quarter based on the following detailed GOG funding schedulefor routine and recurrent feeder road maintenance (para. 4.27):

Period Year 1: Year 2: Year 3: Year 4:Activity CY-1993 CY-1994 CY-1995 CY-1996

Maintenance Funds per Year US$1.87m US$2.75m US$3.61m US$4.48mMaintenance Funds per Quarter US$0.47m US$0.69m US$0.90m US$1.12m

(vii) Retroactive financing up to US$2.0 million equivalent will be allowedunder the credit, on account of eligible payments made after January1, 1992 (para. 4.33);

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(viii) Implementation performance of the project will be monitored against aset of performance indicators and monitorable targets (para. 4.36);

(ix) A mid-term project review involving IDA, cofinanciers and variousGovernment agencies will be carried out not later than December 31,1994, to evaluate and assess (i) overall progress made in projectimplementation; (ii) performance of DFR as executing agency; (iii) theadequacy of the Borrower's counterpart funding as well as the level ofbudgetary allocations and actual expenditures for routine and recurrentmaintenance; and (iv) the need for redesign and/or restructuring ofproject components. The mid-term review will also (i) assess theresults and recommendations of completed studies, ongoing technicalassistance and training programs, and (ii) agree with the borrower onimplementation of findings, including (a) the organization andmaintenance study; (b) the maintenance performance budgeting systemdevelopment; (c) the domestic contractor assessment and developmentstudy; (d) the institutional arrangements made for district-basedroutine feeder road maintenance; (e) DFR staff and domesticcontractor training programs; (f) progress of the rural mobility andenvironmental component; and (g) monitoring and evaluation studies(para. 4.37);

(x) DFR will prepare and furnish to the Association consolidated quarterlyreports on the status of: procurement and disbursement, commitmentsmade under the project, progress on civil works, supply of goods,technical studies, institutional accomplishments, sub-sector relatedissues, and local currency contributions made by the road fund andfrom the Government budget (para. 4.51); and

(xi) DFR will incorporate into its existing feeder road guidelines forengineering design and execution of works environmentally soundprocedures, standards and practices (para. 4.52).

6.02 Condiotios of Credit Effectiveness are:

(i) The creation of a planning division at DFR head office (para.3.08);

(ii) The appointment of the contract management specialist (para. 4.09);

(iii) The appointment of two qualified accountants to assist DFR incarrying out all financial aspects of project implementation (para.4.10); and

(iv) The Borrower will deposit into DFR's account in Cedis the equivalentof US$300,000 as its counterpart contribution to the financing of theproject for fiscal year 1992 (para. 4.24).

6.03 On the basis of the above agreements reached, the project is suitable for an IDAcredit of US$55.0 million equivalent on standard IDA terms.

.REPUBLIC OF GHANANATIONAL FEEDER ROADS RERARILITATIAN AND MAINTENANCE PROJECT

Ministry of Roads and HighwaysOrRanization Chart

I PNDC Secret"

Ch. _fManagementUnd TPM)

MRH RegporaBudeet Depsoey PNDC StaridF cComitatee

CoeSCmSoees

STAFF DEPAG TMENTS

Director DirectorTechdca

AdiniinistrationChief Chief

afmmid ||CooSnaSon eerh l| Mf=9t|| Fnlc nUNE AGENCIES

DFR DUJR GHA

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Annex 2-2Page 1 of 4

REPUBLIC OF GHANA

NATIONAL FEEDER ROADS REHABILITATION AND MAINITENANCE PROJECT

Administrative Structure of Decentralization

A. Departments under District Assembly Authority

I. The 22 departments to be decentralized are:

- Education Service- Library Board- Information Services- Social Welfare- Community Development- Town and Country Planning- ** Ghana Highway Authority- Public Works- Parks and Gardens- Rural Housing and Cottage Industries- Statistical Service- Births and Deaths Registry- F'orestry- Controller and Accountant-General

Medical Officer of Health- Departmeri' of Feeder Roads- Fire Service Departmnent- Animal Health and Production- Fisheries- Agricultural Extension Services- Crop Services- Agriculture Engineering.

** Due to the national character of trunk roads (as opposed to the district character of feederroads), the Ghana Highway Authority appears to have argued successfully agzains itsdecentralization.

B. Overall Administrative Structure

2. While the principle political and administrative component of the decentralization strategyis the District Assembly, there are several levels of organization involved, each of which plays anoperational, coordinating or consent role in support of district development activities. The overalladministrative structure consists of the following levels:

(a) Provisional National Defense Council (PNDC). The Provisional National Defense

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Council or "Council" is the highest political authority in Ghana. With respect todecentralized operations, its role is to approve district development plans and budgetsforwarded to it through Regional Coordinating Councils. At the national level,coordination of plans is the responsibility of the National Development PlanningCommission which forwards recommendations to the PNDC via a Committee ofSecretaries. The PNDC maintains executive authority over District Assemblies and can,for instance, create or dissolve Assemblies, alter district boundaries and change Assemblyfunctions by way of legislative instrument.

(b) Regional Coordinating Councils (10). Decentralization will significantly reduce the roleof regional government from that of an active administrative body to one of a generalcoordination body. The ten Regional Coordinating Councils do not operate as legislativebodies per se, nor do they have direct executive authority over District Assemblies.Rather, they meet once a year (minimum) to review, coordinate and submit to the PNDCfor approval the plans and budgets of District Assemblies in their region. Their key roleis to assure that projects which encompass multiple districts are properly coordinated.Membership of Regional Councils is comprised of all District Secretaries and PresidingMembers of District Assemblies in a region, a Regional Secretary (appointed by PNDC)and his/her ex officio deputies.

(c) District Assemblies (110). District Assemblies are the key legislative and administrativecomponent of the system. They have both legal and executive authority over allgovernment activities in a given district and, significantly, their accountability is directlyto the PNDC, not to regional authorities. For more details on the proposed structure ofDistrict Assemblies, see para. 3 to 10 below.

(d) Town/Area Councils and Unit Committees. These sub-district administrative units canbe established via legislative instrument by District Secretaries on recommendation by theAssembly and with approval of the Council. There is no specific itemization of dutiesfor these organizations, such being specified in the legislative act at the discretion ofdistrict authorities.

(e) Village Committees. Village committees are not formal units of government. However,numerous committees and village groups are organized on an ad hoc basis to addressdevelopment issues. These committees/groups are organized on a self-help basis inkeeping with the major theme of decentralization. Since the inception of thedecentralization strategy there has been a substantial increase in the number of villagecommittees, the majority of which have been organized by various governmentdepartments to assist efforts in a given sector. DFR's "Village Road Committees" areexamples of this level of organization.

(f) Metropolitan Assemblies. Although not directly relevant to the NFRRMP, it should benoted that the three urban areas of Accra, Kumasi and Sekondi-Takoradi are governedby Metropolitan Assemblies with powers similar to District Assemblies.

C. Structure and Staffing of District Authorities

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3. District Assemblies are comprised of one representative from each sub-district electoralarea, a District Secretary and additional centrally appointed members not exceeding one-third of totalmembership. Appointed members are typically selected on the basis of traditional authority (i.e. chiefsor their representatives) and/or affiliation with community, educational, religious, NGO, private sectoror similar groups, but do not represent these directly. The relative number of appointed members varywith the size of districts, but in most cases appear to nearly equate to one-third of Assembly membership.Assemblies generally consist of about thirty to sixty members, although some approach 100 members.Each Assembly elects a Presiding Member by two-thirds majority who serves for one year. Assembliesare required to meet in formal session at least four times per year.

4. An Executive Committee, comprising no more than one-third of the total Assembly, meetsin between Assembly sessions to exercise executive and coordinating functions. The ExecutiveCommittee cannot, of course, preempt the legal and legislative functions of the Assembly. However, theExecutive Committee does assist the District Secretary to manage the day-to-day administration of theDistrict. It plays the key role in linking the larger political Assembly to district management, primarilyby overseeing the following standard sub-committees:

- Economic and Social Development- Social Services- Technical Infrastructure- Justice and Security- Finance and Administration- Ad hoc and district-specific sub-committees.

5. Heads of governmental departments are required to attend meetings of relevant sub-committees, as non-voting members, to advise on their sectoral activities. DFR staff, for instance, wouldbe expected to attend the Technical Infrastructure Sub-Committee in each district.

6. The District Secretary (DS), appointed by Central Government, is the principleadministrator of the district, Chairman of the Executive Committee and voting member on the RegionalCoordinating Council. The DS supervises day-to-day operations on behalf of the Assembly and a "core"staff organized under:

- Deputy Director Planning and Budget Unit;- Deputy Director Administration; and- Internal Auditors (Local Government Inspectors).

7. Each District has a "Development, Planning and Budget Unit" headed by a DeputyDirector (DDPBU). This unit provides a secretariat to the Executive Committee in addition to managingsub-departments dealing with budget, social, economic and spatial development planning activities. ADeputy Director of Administration (DDA) would oversee sub-departments for treasury, municipal servicesand internal administration (e.g. personnel). Hypothetically, each of these Deputy Directors would havestaff complements to run sub-departments.

8. In consultation with an inter-ministerial "Task Force for Programming and Implementationof Decentralization", discussions currently underway within the Ministry of Local Government include

- 42 -


a proposal to add a Coordinating Director (CD) to district staff who would be placed directly under theDS. The CD's role would emphasize management, while the DS would concentrate on political andpolicy matters. No decision has been made on this proposal.

9. All districs have constituted Assemblies, formulated Executive Committees and arestaffed by at least District Secretaries and some manner of core staff (with the exception of aCoordinating Director which is still under consideration). However, numerous vacancies exist, beginningat the Deputy Director level. Nearly all districts have a significant number of vacant posts, especiallyamong core staff which would support DDPBUs and DDAs. One response to this situation is theGovernment's creation of a "Mobile Budget Unit" to assist districts with budget preparation andelementary administrative matters.

10. The structure and staffing requirements outlined above are still very much in the processof being developed and cannot be assumed to be adequately operational in all but a few, relatively largedistricts and metropolitan areas. This still limits the District Assembly's capacity to assume managerialand administrative supervision of line departments such as DFR.

AF4INNovember 1991

(AdmStrDe.NFR)

- 43 -


REPUBLIC OF GHANA


District Planning and Composite Budgeting Process

1. Under PNDC Law 207, District Assemblies will be responsible for preparing andsubmitting annual development plans and budgets to the PNDC for approval. All developmentactivities undertaken in the districts will therefore be subject to PNDC authority and, in turn,programs and projects approved in these plans will be executed by departments, subject to DistrictAssembly authority.

2. When PNDC Law 207 is fully implemented, all district-level department operationswill come under district budget control. District Assemblies will prioritize departmental activities.Funds (including salaries) will be allocated to districts for onward disbursement to departments. Allfield staff will be paid through district channels. Operational guidance and disbursements ofcontractor fees will be under district control.

3. As envisioned in the law, the principal budgetary mechanism for effecting this changewould be the requirement that districts compile and administer annual "composite budgets."Composite budgets would contain aggregate revenue and expenditure estimates inclusive of the districtassembly, district administration and all departments under district administration. The developmentplans and programs of each departnent are also to be included.

4. The annual process of composite budgeting is relatively straightforward. Districtsecretaries would request technical plans and corollary budget estimates from the twenty-twodecentralized departments. The executive committee of the District Assembly would receivedepartmental proposals and integrate these proposals with their own plans for spending locallygenerated revenues. The resulting composite budget would then be considered by the DistrictAssembly. Approved budgets and development plans would be forwarded to the RegionalCoordination Council, which passes them to the National Development Planning Commission, whichpasses them to the PNDC.

5. Regional Coordinating Councils and the National Development Planning Commissionare largely conduits to the PNDC. The Coordinating Councils have very limited powers tosubstantively review proposed projects which involve more than one district. The NationalDevelopment Planning Commission prepares analyses of individual and aggregated budgets, but hasno review or approval prerogatives. After approval by the PNDC of district budgets, funds would bereleased directly to the districts for expenditure against approved estimates.

6. In the case of DFR, annual budget proposals would presumably include an inventoryof feeder roads (including accurate reports of current condition); proposed priority activities andestimates of their associated costs; identification of potential funding sources and amounts;

- 44 -


identification of projects which require coordination with other districts; and recommendations forDistrict Assembly action.

7. No serious effort to implement the composite budgeting process has been undertakenso far. With few exceptions, the "decentralized' departments continue to plan and budget from thecenter. There is considerable variation in the extent to which districts plan, budget and administer incoordination with the local offices of the departments.

8. A review of selected traditional budgets indicates that they contain reasonably detailedrevenue figures, but expenditure estimates are generally limited to District Assembly and coreadministrative expenses. Departmental expenditures, where available, are included as notations onselected projects which are expected during the fiscal year. Complete departmental operating budgetsare not provided. Indeed, departments may be unable to provide such information disaggregated bydistrict.

9. Review of a very limited number of current district budgets suggests the need forimprovement and a certain degree of standardization of budget categories. No district budgetreviewed included a discrete line item for routine feeder road maintenance. It is rather more typicalfor budgets to include a line item for "community initiated projects," a portion of which may be usedfor feeder road rehabilitation and/or periodic maintenance.

10. Alternatively, a budget might estimate the cost of rehabilitation or periodicmaintenance of a particular feeder road that the district wishes to undertake. The budgets reviewedcontained no information on DFR feeder road activities, despite numerous DFR projects in thedistricts in question. District budgets are not yet designed to itemize these projects, let alone actuallymanage project expenditures.

AF4INNovember 1991

(CompBudg.NFR)

REPUBLIC OF GHANANATIONAL FEEDER ROADS REHABILITATION AND MAINTENANCE PROJECT

Department of Feeder RoadsOrganization Charts

Developmnent | Administration ||Maintenance

cocoalp k nning S wvey & D w elopinefd A ft nistration Accounts P eronn el & Contract Road M e chanics & R egions

pleads De~signre Deepnin Amis,tinPsu Training Administration Mairdn-teace Procurement g

ii~~~~~~~~~~~~~~~~~~~~~~-

j e

LQea ex~~~~~~

w

I l0 1

RtegionalEnigineer

Aooourns Regional StaNt Mechanical ProjectStores and uafyEngineer Supervisor _ Engineer

Admnstrabon Surveyor Capial Eiase Labour Base

MechanicsS.T.O. OuanfityT.O. Quantity

Accourds Adrnir isSion Stores Residern eidn Assistant Assistanl Assistant |aficers Ollicers Olficers ~Engineer Egneer Engineer Engineer Engineer

Contracts Mrmat Siam Contracts1 I Contracts11

L | En9neerl | | ~~~~~~~~Enginel|

|Fosamn | Forernan Fme *rO n Forexrn|

I Fblhcal Po ||al Drahase Towed Grded | , 1 |Dist || Dishia2 jSactme Tearn| Tearn II

< < _ <~~~~~~~. 1 2 3 4 5 6 7 E 9 10

c~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~O I

01

- 47 -

ANNEX 3-2Page 1 of 1

REPUBLIC OF GHANA


FEEDER ROAD CONDITION AND SURFACE TYPE BY REGION

AS OF AUGUST 1991(in Km)

c=======a===== = ===========================a====================a==

REGION CONDITION TYPE SURFACE TYPE

GOOD FAIR POOR GRAVEL EARTH BITUMEN TOTALLENGTH

GreaterAccra 74 193 551 530 144 144 817

Volta 232 488 1,628 907 1,426 15 2,348

Eastern 386 811 1,118 1,044 1,269 2 2,315

Central 162 1,112 707 990 928 63 1,981

Western 205 616 1,518 869 1,470 - 2,339

Ashanti 808 277 2,243 1,098 2,161 69 3,328

BrongAhafo 627 453 2,277 976 2,381 - 3,3S7

Northern 318 809 1,254 1,034 1,346 - 2,381

Upper East 148 198 606 469 483 - 952

Upper West 368 112 968 422 1,026 - 1,448

TOTAL 3,327 5,069 12,868 8,338 12,634 293 21,265PERCENT 16 24 61 39 59 1 100mm mmm mm mm mmmm m mm mm mm zmm mminmmin="Xt===D5ssss

- 48 -

ANNEX 3-3REPUBLIC OF GHANA Page 1 of 1


DFR PERSONNEL AT POST AS OF AUGUST 1991

HQ/REGION CIV. PLAN. QUANT. ENG. TECH. F/MEN ADMOIN. OPER- DRIVERS ARTISANS LABS TOTALENG. OFCR. SURV. TECH. OFCR. SUPT. STAFF ATORS RERS ALL CLASS

Headquarters 8 3 3 1 3 - 32 20 - 5 75

G/Accra 1 - - 1 5 - 11 - 2 5 3 28

Volta 2 1 6 18 9 12 7 6 35 96

CentraL 1 - 1 1 10 14 5 9 2 2 32 77

Western/

(Takoradi) 2 - - 1 7 11 11 6 5 6 19 68

cwiawso Dist.) 2 - - - 2 7 9 15 8 1 13 57

Eastern 4 - 1 9 18 20 21 13 7 32 125(Koforidua) - - - 2 8 7 10 2 11 6 13 59

tK dua dist.)/PANSCAD I - - 5 3 3 5 4 3 - 24

Ashanti 1 - - 7 8 10 13 7 15 9 13 83(Kunasi) 2 - 1 2 7 27 - 9 5 2 42 97

Nanpong Dist. - 1 - 2 12 - - - 12 27

Bekwai Dist. 3 - - 1 1 14 1 7 6 4 19 56

Brong Ahafo 5 - 1 4 8 43 13 16 11 6 73 180(Sunyani) 2 - 1 1 6 4 9 5 6 5 25 64

(Goaso) 4 - - 1 - 7 3 5 4 2 5 31

(Techiman) - - - 2 - 1 - - 3

Northern 6 - 1 4 6 12 12 10 10 7 30 98(Tamule) 3 - 2 8 14 9 5 4 3 38 86

Upper West 1 4 3 6 10 2 - 14 40

Upper East 1 - 2 3 4 8 4 1 3 31 57

TOTAL 49 3 9 39 101 219 196 148 136 77 454 1431PERCENT 3 0 1 3 7 15 14 10 10 5 32 100s-ag-===w==wn3=B==ea2e=mB c=aFts-=aa==a==B=as=aaa="v

- 49 -

Annex 34Page 1 of 2

REPUBLIC OF GHANA


The Rod Committee System

1. A hierarchical structure of committees has been devised for the purposes of communityparticipation in planning and execution of voluntary feeder road maintenance. The system has beenin place on an experimental basis in some districts since 1986, with mixed results. It consists of:

(a) A District Road Committee which is at the top of the hierarchy of committees. It ischAired by the District Secretary and includes representatives of the major interestgroups in the district. The relevant road area engineer and foreman from DFR attend.This committee has an important role in selecting feeder roads to be the subject ofmaintenance. In addition, PNDC Law 207 requires district level participation in theplanning and budgetary process. Districts discuss their priorities and reconcileconflicting demands. DFR's regional engineers take these views into account whenformulating regional budget proposals.

(b) Central Road Committees which are at the next level down in the hierarchy ofcommittees. These committees are in charge of formulating arrangements forallocation of maintenance responsibilities for specific sections of the feeder roadnetwork to specific communities.

(c) Village Road Maintenance Committees which have the responsibility for ensuring thephysical maintenance of a specific length of the feeder road network. 'They areprovided with tools, technical advice and training by DFR via its foremen.Organization of work depends on community preferences. Sometimes it may be doneby a gang of 8-10 people on a full-time basis. In other situations it may be done on alengthman basis. Villagers are sometimes mobilized to assist in spot improvementworks (recurrent maintenance) which are executed by DFR's MOREMAT units.Tbere is, however, a tolerance level for unpaid labor on such works which can havenegative effects on the willingness to undertake voluntary routine maintenance.

2. The Road Committee system is used primarily to organize voluntary labor to performroadside and drainage maintenance, tasks which can be done entirely by hand labor. Routine roadsurface maintenance is performed by SIAM units using towed graders and other equipment to assistvoluntary laborers and to provide backup where voluntary labor is inadequate. The role of theSIAM units is also to fill gaps left by MOREMAT units which respond to emergency repair andheavy blading priorities set by District Assemblies.

3. It has generally been assumed that routine maintenance on feeder roads in Ghana canbe carried out with considerable dependence on voluntary community labor, managed through theabove Road Committees, organized primarily by district authorities which would rely on DFR fortechnical support. VQluntary labor is assumed to be a workable solution to the dilemma of routinemaintenance for a greatly expanded network of feeder roads. Field evidence shows that thisconclusion is hard to support.

- 50 -


4. There have been serious problems with voluntary community labor from the outset andthese continue to exist. DFR itself has not yet adequately addressed the breadth of management,organization and technical problems which this approach requires. DFR's own experience withroad committees and voluntary labor on feeder roads rehabilitated under the labor-based contractorscheme has increasingly shown it to be much more complex and management-intensive thanoriginally assumed. Indeed, most field staff interview ved consider it to be the least effective optionavailable.

5. DFR apparently intends the road committee system to be a 'free-standing" mechanismto transfer maintenance responsibility to districts and communities once feeder road rehabilitationworks are completed. The organization, management and implementation of maintenance activitieswould be basically operated by non-DFR district personnel in coordination with village leadership.

6. The distinction between technical versus organizational and management support iscritical. While DFR would provide technical assistance to committees and maintenance groups,ajj:i organizational and management tasks would be done through committees supported by District

Assembly authorities. Ideally, DFR would then be free to concentrate on feeder road rehabilitationand periodic maintenance activities (as it has done in the past), limiting its role in routine andrecurrent maintenance to engineering input and spot improvements requiring mechanized equipment.

7. The success of the model depends on:

* the capacity of district officials to organize and maintain the road committee system;

* the willingness and ability of communities to consistently provide voluntary labor overtime which can in turn perform routine maintenance activities to basic technicalstandards; and

* the availability and scheduling of DFR technical staff, particularly at the foreman androad area engineer level.

8. As a means to encourage communities to assume responsibility for routinemaintenance, they were initially given an 'incentive" in the form of food-for-work rations. Theincentive is designed to stop after six months. It is expected that the community will voluntarilycontinue maintaining feeder roads thereafter.

9. The road committee system will be investigated and tested further. Districts whichhave already established well-functioning road committees will be allowed to incorporate these intotheir NFRRMP road maintenance activities. However, no general effort to stimulate developmentof road committees in additional districts will be undertaken unless and until field researchdemonstrates the utility of a country-wide road committee system.

AF41NNovember 1991

(RoadComm.NFR)

- 51 -

Annex 3-5Page I of 5

REPUBLIC OF GHANA


Experience with Voluntary Community Labor

1. Recent experience with voluntary community labor for routine feeder road maintenanceis, at best, mixed. Indeed, there is little reason to assume that voluntary community labor will effectivelyoperate over the long-term and that it can accommodate the needs of maintaining a greatly expandedfeeder road network. This conclusion is based on the supposition that, as the network expands over theproposed eight-year NFRRMP, it will be increasingly necessary to have an effective routine feeder roadmaintenance system which is:

* predictable in terms of regular scheduling and execution of maintenance activities;

* reliable in terms of technical control of maintenance tasks; and

* manageable in terms of supervision, cost control and technical staff input.

2. Experience in Ghana (as elsewhere) suggests that, with respect to ongoing routine feederroad maintenance, voluntary community labor is neither predictable nor reliable, nor amenable to themanagement of relatively intensive, repetitive tasks required by routine maintenance performancestandards. This is not to suggest that community self-help is undesirable or cannot be used for somemaintenance activities. Rather, it is simply the case that community volunteerism is appropriate for some,but not all development activities. Based on current experience, routine feeder road maintenance doesnot appear to be one of them.

3. Recent field assessments on the effectiveness of routine feeder road maintenance byvoluntary community labor have resulted in the following observations supporting the above viewpoint:

(a) Ineffective Road Committees. DFR field staff acknowledge that most road committeesare either ineffectual or completely inoperable. Political authorities have not yet provedeffective in organizing and sustaining the system over time and have limited influence oncommunity priorities and decisions about which projects they will undertake. In contrastto the theoretical model of a free-standing road committee mechanism which wouldensure ongoing routine feeder road maintenance, there is no "system" which is self-perpetuating. Essentially, this means that DFR field staff must personally mobilizevoluntary routine feeder road maintenance each tine it is required. Road committees aremost effective during the planning, construction and incentive phase, but there is ageneral pattern of gradual decline and loss of enthusiasm after feeder roads have beencompleted and incentives withdrawn. Community enthusiasm is invariably high at thebeginning of feeder road rehabilitation projects. For example, several communities havevoluntarily cleared bush prior to a contractor arriving on site. However, once a feeder

- 52 -


road is rehabilitated, community and district priorities naturally begin to shift to morepressing problems. From the community's perspective, the road is "finished". Somecommunities have also begun to assert that roads should be maintained by Governmentor by the contractor who built them.

(b) Inadequate Follow-up. The relatively high level of follow-up required to organize routinefeeder road maintenance also poses a problem. Community organization is management-intensive, especially for projects which entail frequent, repetitive and consistent inputssuch as routine feeder road maintenance. District Assembly staff are typically involvedin setting up road committees, but cannot and/or do not allocate the amount of timeneeded to support community leadership to ensure that feeder roads are, in fact,continuously maintained. For example, the frequency of village visits by CommunityDevelopment Officers varies from one- to six-month intervals. Higher level officials,such as District Secretaries, may visit a given community only once a year.

(c) Conflicting DFR Staff Priorities. DFR field staff consequently spend an inordinateamount of time trying to organize communities, manage road committees and supervisevolunteers (if and when they are available). While they have done a commendable jobthus far, DFR staff are technicians, not political organizers, and are not trained incommunity organizing skills. As the maintainable feeder road network expands, theymay be impelled to spend even more time on the political task of organizing communitiesand less on technical work. This could have serious implications for the seven yearNFRRMP, since the work load of DFR engineers will significantly increase as theprogram is implemented. Field staff already encounter this problem in districts wherea significant number of feeder roads have been completed under the labor-basedconstruction program. The modest success of voluntary maintenance programs is due tothe commitment of DFR technical and field staff. They appear to have done an excellentjob of working with local chiefs, other community leadership and voluntary workersthemselves, even in cases where official district administrative support has been relativelyineffectual. Nonetheless, it must be recognized that this consumes a lot of time, is notbeing accomplished through a self-perpetuating road committee system and is dependenton the personal commitment and skills of individual DFR personnel.

(d) Lack of Incentives. Community participation declines after incentives have beenremoved. Reasons for this range from the obvious assumption that people are unwillingto continue working for free when they have been working for some compensation, tosituations in which communities are suspicious that incentives are being withheld byeither district or DFR staff. Many community members are also aware that the GhanaHighway Authority pays reasonable wages for routine trunk road maintenance under itssingleman contractor system and therefore do not see why they should not be affordedthe same opportunity.

(e) Road Quality. As noted in other reports, community participation and enthusiasmdeclines in relation to the quality of the road. A newly rehabilitated road may not - from

- 53 -


the community's point of view - receive priority over other communal labor demands,precisely because it is in good shape.

(e Inadequate Technical Performance. It is also difficult for the community at large torespond to the need for frequent preventive maintenance performed to the technicalstandards preferred by DFR engineers. DFR field staff reported that routine maintenanceperformed by volunteers on communal workdays often falls short of expectations. Whilegrass cutting and bush clearing are relatively straightforward, ditch and culvert clearingcan be more complex if there are significant drainage problems. It is nearly impossibleto provide training and supervision of these tasks on a consistent basis, since each task

, * may be done by a different volunteer on any given workday. Field staff report thatvolunteers who previously worked on feeder roads under labor-based contractors aremuch better at performing routine maintenance tasks because they tend to have a betterunderstanding of technical standards. Nonetheless, because of the voluntary nature ofthis work, it is extremely difficult for DFR staff to insist that labor redo tasks to a higherstandard.

(g) Variable Community Participation. Community participation is highly variable and isinfluenced by many events outside of the control of road committees, DFR and districtauthorities. It is certainly inescapable that participation drastically declines duringplanting and harvesting; but also deaths, sickness, more pressing development needs orlocal concerns and many other variables impact the amount of community participationat all times during the year.

(h) Uncertain Labor Availability. Labor availability on a given workday is also a factormitigating against reliable road maintenance. During workdays, communal labor groupsare typically divided among several development activities. On a given day, there maynot be enough labor available to accomplish all projects. Routine feeder roadmaintenance is particularly susceptible to this circumstance because the tasks are arduous,repetitive and less enjoyable than, say, helping a large group construct a storage shed.There may occasionally be too much labor, but this also poses a supervision problem.Since the community prefers to work as a group, fifty people may be doing what tenpeople should do, making it difficult to manage outputs. In either case, there is noassurance that voluntary labor will accomplish a given set of routine maintenance tasksor that they will do them to an acceptable standard.

(i) Competition for Community Labor. Demands on community voluntary labor areescalating. Partially as a result of decentralization policies, many other sectors areincreasing their dependence on community participation. Several District Secretariesnoted that competition among projects is increasing and that communities cannot manageto do everything asked of them exactly when it is asked of them. Voluntary labor iscalled upon to construct and maintain secondary schools, pit latrines, small dams, cocoasheds, feeder roads, health outposts, storage facilities and other community structures aswell as respond to agricultural, civic and communal activ;ties (such as weddings,

- 54 -

Annex3-Page 4 of 5

funerals, illness, etc.). Traditionally, communal tasks are performed one time per week,but this too may vary depending on the season, a given community's cohesion, thestrength of community leadership and a variety of other factors. In these circumstances,communities naturally decide priorities according to multiple factors. Income generation,family and communal obligations and immediate problems will of course receive priority.Performing arduous routine maintenance on a relatively functional feeder road easily slipsto the bottom of the list.

(i) lse and Length of Road. Usage and length of feeder roads seem to influence voluntarycommunity participation. DFR field staff consistently noted that there is less enthusiasmto maintain stretches of transit roads, presumably because communities may feel they aremaintaining roads used as much, or more, by others, as by themselves. It has beeneasier to organize maintenance in areas where a feeder road terminates in proximity tothe community supplying the labor because the road's contribution to the communitydevelopment is more immediately evident.

(k) Distance Between Communities. The distance between communities also affectsmaintenance activities. The length of a feeder road poses both a logistical and anaccountability problem. Communities are, in principle, assigned a length of feeder roadto maintain. If there is a great distance between two communities (e.g. approximatelysix kilometers or greater) then volunteers have to consume a lot of time and energy toreach the farthest parts of their road, and they have relatively less time to performmaintenance activities once they reach it. It is sometimes unclear, or in dispute, whichstretch of road belongs to which community. So the tendency is that parts of the roadmid-way between communities receive less or no maintenance.

4. Perhaps the most important point emerging from the foregoing observations is that theroad committee system is not at all self-perpetuating as the model envisions. District and village officialscertainly play a role in initially organizing road committees and in many instances make efforts to seethat they continue to operate. But it is clear that road committee effectiveness is highly dependent oncontinual personal intervention of DFR field staff. The core of this dilemma is that the system relies onvoluntary community labor. It will therefore always require immense organizational efforts to keep thesystem running. If this is the case, demands on field staff will not diminish, but will rapidly increase asthe NFRRMP is implemented.

5. It is the conclusion of this analysis that the voluntary community labor approach isextremely problematic, if not unworkable as a long-term primary strategy for routine feeder roadmaintenance. Given the magnitude of expansion of the feeder road network envisioned under theNFRRMP and the size of the Government's long-term investment in feeder road rehabilitation works,reliance on community volunteerism cannot be recommended as a means to assure proper routinemaintenance so that the system does not rapidly deteriorate.

6. It is recommended that routine feeder road maintenance be shifted from a voluntary toa contractor-based system similar to the singleman contractor approach used by the Ghana Highway

- 55 -


Authority. This obviously requires a substantial financial commitment. However, the alternative is torely on a voluntary system which is unreliable over the long term, leading to an inevitable deteriorationof the rehabilitated feeder roads. The question remains as to how to finance and organize routinemaintenance if it is to be reoriented to a contractor-based system. Since the Government of Ghana hasbeen pursuing a decentralized development strategy, the idea has been advanced that District Assembliesmust assume this task.

AF41NNovember 1991

(VoComLab.NFR)

- 56 -


REPUBLIC OF GHANA


Road Area Prioritization and Feeder Road Pre-Selection

A. Introduction

1. The poor condition of most feeder roads in Ghana has been identified as oneof the key reasons for the current low level of agricultural production. The proposed 4-yearNFRRMP will improve the condition of feeder roads from the current level of 16% "good" toan estimated level of 30% "good" by 1996.

2. To achieve the foregoing objective, the project is expected to focus on highand medium agricultural potential areas in support of the MTADS. The planning systemwhich was developed for feeder roads includes:

(a) prioritization of road areas;

(b) pre-selection of feeder roads on a corridor basis based on agreed socio-economic criteria;

(c) socio-economic evaluation of feeder road rehabilitation; and

(d) engineering design and preparation of bidding documents for feeder roadinvestment.

B. Road Area Prioritization

3. As a result of the limited financial resources available for feeder roads inGhana, prioritizing the road areas is a way of ensuring that maximum returns will be obtainedfrom the investment. All thirty-two (32) road areas (which include 110 administrativedistricts) were prioritized using criteria developed jointly by the MTADS team of the MA andthe DFR. Criteria considered in the prioritization of road areas included the following (on aroad area basis):

(a) agricultural production;

(b) average transport cost;

(c) population density; and

(d) accessibility.

4. Each road area's agricultural production is the sum of the value of allagricultural commodities produced within the road area using road area production figures and

- 57 -


prices for major crops made available by the MA. Transport cost is the average cost ofhauling agricultural freight over a unit distance within each road area using data from theMarketing and Credit Division of the MA. Population density was calculated using road arealevel census data, and accessibility was also calculated with data on road lengths by road areasmade available from the DFR Planning Unit.

5. Data collected on these variables for all the 32 road areas were analyzed.Priorities were developed based on a system of weights and scores. These weights wereestablished considering the objectives of the MTADS and the NFRRMP following a numberof consultations of the joint MA and the DFR team. The following weights were agreedupon:

(a) agricultural production 40%

(b) transport cost; 30%

(c) population density 20%

(d) accessibility 10%

6. The agreed weights were combined into a linear function from which an indexor composite score (Fi) was derived and used to rank the road areas. The model used inranking the road areas is defined as follows:

Fi = 0.4Gi + 0.3Ti + 0.2Pi + O.lAi

where the road area parameters are:

Gi = Agricultural ProductionTi = Average Transport CostPi = Population DensityAi = i/2(Ri + Ei) = Accessibility

and Ri = Road Area Road Density, i.e:

= Kilometers of Feeder Roads in Road AreaArea of Road Area in sq km

and Ei = Extent of Maintenance Activity, i.e:

= Length of Feeder Roads Graded or MaintainedTotal Road Area Network (in km)

Subject to : 100 > Gi, Ti, Pi, Ai > 0

- 58 -

Annex 36Page 3 of 5

7. The following list contains the prioritization of the 32 road areas in Ghana:

Priority Listing of Road Areas

Road Area Priority

Techiman * HighCape Coast * HighSunyani * HighMampong * HighSefwi Wiawso HighBekwai * HighYendi * MediumKumasi * MediumAda * MediumHohoe * MediumDunkwa * MediumWa * MediumAkim Oda * MediumTamale * MediumTakoradi * MediumNkawkaw MediumKeta * MediumBolgatanga MediumSomanya MediumTumu * MediumGambaga MediumLawra LowBerekum LowTarkwa LowWinneba LowHo LowBawku LowSawla LowNsawam LowAxim LowAccra Tema LowKoforidua Low

Note: * Selected Road Areas for NFRRMP(see also Map)

- 59 -

Annex 3Page 4 of 5

C. Pre-Selection of Feeder Roads for Investment

8. Following the road area prioritization, a pre-selection of feeder roads in highand medium potential road areas was prepared with socio-economic data that were available atthe road area and settlement level for each feeder road corridor. These data include thefollowing:

(a) population of settlements along feeder road corridors which were obtainedfrom census data of Ghana;

(b) length and condition of the feeder roads from DFR road registers;

(c) social services (health and education) along feeder road corridors, which isalso available from the census data; and

(d) cost of improving or rehabilitating feeder roads to various levels ofaccessibility, which was obtained from DFR's quantity surveying section.

9. The above data were assembled for all feeder road links within the selectedroad areas and used for pre-screening with the aid of a computer.

10. The pre-selection of feeder roads for investment involved three distinctphases. Eir, roads within 3 kilometers of protected areas were excluded. Second, the datafor each feeder road corridor were assembled into three factors, namely:

(a) population density;(b) linkage to social services; and(c) condition of road which is closely related to cost of improving feeder roads to

required levels.

Each of the three variables was normalized and assigned a weight, giving priority to thebenefits but also weighing the costs to consider roads with bridges or large earth works._hir, the pre-selection done at DFR Head Office was passed on to the District Secretariesand DFR regional engineers for comments and correction.

11. The system of weighing and scoring emphasizes the importance of population(50 percent), social services (30 percent) and road condition or cost (20 percent). Thisprocedure was used in pre-screening all feeder roads for investment under the project. Inaddition, roads considered to be redundant from a network point of view or those alreadyincluded in other development projects or those in a maintainable condition were deleted.

12. The tentative list of pre-selected roads compiled for each district together withcomments from various District Secretaries and their respective Assemblies as well ascomments from DFR regional engineers were considered in establishing a final list of pre-selected roads.

- 60 -

Annex 3-6Page 5 of S

13. The pre-selected roads were subjected to detailed cost and benefit analysis toestablish a final priority ranking for investment. This process of pre-selecting roads forinvestment ensures that local priorities are considered together with socio-economic factors.

AF41NNovember 1991

(A=Prio.NFR)

61 - Annex 3-7

Page 1 of 4

REPUBUC OP GHANA AUG. 1991

NATIONAL PEEDER ROADS REHABILITAIION AND MAINTENANCE PROJECT

REHABLITATION OF I KM FEEDER ROAD(ROAD WIDTH c 7.32m)

__~~~~~~~ ._ .... . _........... . ........... ......... ...... ........ ... . .............. ...... .. _ ........... . ................... ................... .......... ............ .

UNIT Capital-lnteasive Labour-lItenive

Item Decription QTY UNIT RATE TOTAL in % in %Ial Foreign Local Poreign

....... ... ... .. ...... ................................ ...... .......... ..... ............ .............. .................... .............. .................... ............. .................... .............

A. Ckl existingroadof - -Cedis-----Sevannsh bush 0.80 Ha 395,122 316,097.60 46 54 98 2

B. Clear carriageway of gras.bush 0.40 Ha 301,000 120,400.00 46 54 98 2

C. Cear out and deepen existingside(eaath dmi) 700 m 148 103,600.00 44 56 98 2

D. Excavate V' haped drinageditches 400 m3 633 253,200.00 45 55 98 2

E. Scadfy exisng gaveluface of wad, she to

crossfalle aN compact 7,320 m2 76 556,320.00 44 56 85 15

F. Excavate sub-grade materiaf.m boow pit, ha notexceeding 1km, plae andcompact in low-lying areas. 500 m3 1.935 967,500.00 45 55 80 20

0. Excavate sbgrade matain open cut, push, place adcompact 200 m3 802 160,400.00 45 55 85 15

H. Excava unsuitable (wampy)mterl and dipoe 100 m3 812 81,200.00 45 55 97 3

1. Excavate from approved pit,gmvel sub-bwe mteri100mm thick, bhul notexceeding kba, place andcompact 7,320 m2 210 1.537,200.00 44 56 55 45

J. Extm for haulage of gavesub-bas in excs of Ikm(3km) 2,635 m3/hn 130 341,232.50 44 56 44 56

K. Provide materias ndcosuct scour chlcs asper drawn 8 No. 3,000 24,000.00 98 2 98 2

L Construct Sigle 900mmdiatr precs conretepipe culveat. inchdingexcamto and bacfing,formwork and conret

dwjeml ooenpbco(ProvIio I No. 795000 795,000.00 96 4 98 2

Tola wihout Contencis in Cedia 5,256,150.10 53 47 77 23

in USS 14,016.40 7,366 6.650 10,767 3,249= =man= s=mfm . .. MM=== ==sue

- 62 - Annex 3-7

Page 2 of 4

REPUBUC OF GHANA AUG. 1991NATIONAL FEEDER ROADS REHABIUTATION AND MAINTENANCE PROJECT

REORAVELUNG OF I KM FEEDER ROAD(ROAD WIDTH = 7.32m)

---- ...... ............ . .......................... ... .. . ...... ....... ....... _ .... .... ... .... ... _ ........ ___

UNIT Capital-tnaive labour-lntensiveItem Dcription QTY UNIT RATE TOTAL in % in %

LocAl Foreign Local Foreign................ .. . _.... .... ..... . ........... ........ ... .... - --------. _ -------- ..... _. . ... ------- --- --- . .... . ..... . ..... ....... . .... _ ..... .. .... ...... ...... .

---- uedis -----A. Clar existing roud of

neglected bush 6,000 m2 30 180,000.00 46 54 98 2

B. Cklr cut and deepen existingaide (eah; dran 1,400 m 148 207,200.00 44 56 98 2

C. Sca* exsting grvel surfaceof rout, spe to cmbfaflsnd compact 7,320 m2 76 556,320.00 44 56 85 is

D. Excavat sub-grade materiafirom borrow pits, haul notexceeding lkm, pace ndcompact in low-ing area. 100 m3 1,935 193,500.00 45 55 80 20

. Excavte from approved pits,gravel sub-e materil 100mmthick, haul not exceeding lkm,pice and compact 7,320 m2 210 1,537,200.00 44 56 55 45

F. Extra for haulage of gmvelsub-hue in exces of lkm (3Mm) 2,635 m3/km 129.5 341.232.50 44 56 44 56

G. Provide materials and conatictscour checb as per drwings 8 No. 3,000 24,000.00 98 2 98 2

L Constwt single 900mm dineerprecast concet pipe culvert,inclding excavation andbwckfilling. fowmwork and

concrete munwnd compide(Provialona) 0.75 No. 795.000 596,250.00 96 4 98 2

Tota wiout Contingencies in Cedis 3,635,702.50 53 47 72 28

in USS 9,695.21 5,142 4,553 6,962 2.734====an= n== ===G= no== ==mm=

- S3 -Annex 3-7

Page 3 of 4

REPUBIIC OF GHANA AUG. 1991NAThoNAL FEEDER ROADS REHABIUTATION AND MAINTENANCE PROJECT

SPOT IMPROVEMENT &RESHAPING OF I KM FEEDER ROAD

(ROAD WIDTh - 7.32m)

UNIT CapitalI-n ive labour-rnmiveItcm Dc-Tion QTY UNIT RATE TOTAL In % in %

Locl Feo } cal Pp

---- Cedis----A. Clear exng rood of

neglected busb 6,000 m2 30 180,000.00 46 54 98 2

B. Cla out and deepen exitinside (caith) dnlm 1,400 mo 148 207,200.00 44 56 98 2

C. BIede. gavel uafe tocroa falle and compact 5,850 m2 33 193.050.00 44 56 85 15

D. Scailfy exit gavel swfaceof rood, &hope to crofllsed cmpact 1.500 m2 76 114.000.00 44 56 85 15

E. Excaat ub-gade materlfrom borrow pit, haul notexceding 1km ple andcompat in low-ling ares. 100 m3 1,93S 193.500.00 44 56 55 45

F. Provide materials and coneuctacour chec amper dmwiAp 8 No. 3.000 24,000.00 98 2 98 2

Total wltouCondtgence inCediC 911,750.00 46 54 84 16

in US$ 2,431.33 1,114 1.317 2.054 377"asta=ct =-M Ws=Mu m=== mm===

- 64 -


REPUBUC OF GHANA AUG. 1991NATIONAL FEEDER ROADS REHABIUTATION AND MAINTENANCE PROJECT

CONSTRUCTION OF I NO. SINGLE DIAMTER900 mm PIPE CULVERT (7.32 m)

UNIT Capital-latensive Labour-InteiveItem Description QTY UNIT RATE TOTAL in * WX

Local Foreign Local Forein

---- Cedis----A. Trencb excavation 12 m3 1,600 19,200.00 95 5 98 2

B. 50mm thick coret blinding 10 m2 1,615 16,150.00 94 6 98 2

C. Provide lay md joint 900mmdameter P.C. pipes 8 m 38,500 308,000.00 95 5 95 5

D. Concete (1:3:6-38mm agg.) inbed ad surronmda includingfomnwork complete 8 m3 34,200 273,600.00 94 6 98 2

a Concrte (1:2:4-20mm sgg.) inwmngwall headwalH and aprns 2 m3 39,000 78,000.00 94 6 98 2

F. Sawn founwork to vettical sidesofwall$ 18 m2 1.020 18,360.00 98 2 98 2

0. Excate trzoidal dainsby bml 60 m3 750 45,000.00 98 2 98 2

H. FMlltoculvertapproaches 320 m3 1.935 619,200.00 45 55 65 35

1. Extm for haulage of fll,0-20 kn) 640 m3/km 129.5 82,880.00 44 5 44 56

L. Exta for baulge of aggregatand and (20-100 kmn) 350 m31km 112 39,200.00 44 56 44 56

Total withu Contigencies in Cedi 1,499,590.00 70 30 79 21

in USS 3,N08.91 2,803 1,196 3,174 825=-w1t5G ===, - _.-= ==E,, _,,,_

- 65 -


REPUBLIC OF GHANA


Status of Domestic Construction Industry

A. Classification of Domestic Contractors

1. The list of registered A, B, and C class domestic contractors as of August 1991,including the value of contracts they are registered for, is as follows:

No. of Value of Type ofClass Contractors Contracts Work

Al 4 no-limit Equipment-A2 10 C800m basedA3 71 C400m Road MaintenanceA4 61 C150m and Rehabilitation

Total "A" Class- 146

BI 5 no-limit BridgesB2 15 c300m andB3 104 C150m CulvertsB4 186 c 60m

Total "B" Class - 310

C 47 C125m Labor-basedRoad Rehab.

Total "A","B" & "C" - Q

2. Class "A" contractors are registered for roads, airports and related structures; class"B" contractors for bridges, culverts, and other structures; and class "C" contractors forlabor-intensive road and culvert works. Class "A" contractors are most essential for the roadsub-sector. However, it would not be justified to assume that the road sub-sector wouldprovide continuous work for all the 146 registered class "A" contractors. It is thereforenecessary that future efforts to develop local construction capacity should focus on a realisticassessment of demanded capacity based on a number of good performing class "A"contractors rather than the present large number of 146 contractors. The screening of goodperforming contractors could be done through a detailed assessment of individual contractorsevaluating their problems and constraints.

3. Class "C" contractors were recently developed by DFR for low volume, low costfeeder roads; for sections of roads where road site materials are suitable for formationconstruction and rehabilitation; and where surfacing materials can be obtained within a shorthaulage distance. Presently, these contractors are not expected to carry out structural works

- 66 -


except small culverts. They are appropriate for small and scattered works which would notattract the class "A" contractors.

B. Road Sub-Sector Stabilization Program

4. Ghana has 14,400 km of trunk roads and 21,300 km of feeder roads. About 6,000km of trunk roads are bitumen-surfaced and the remaining 8,400 km are laterite gravel-surfaced roads. Out of the 21,300 km of feeder roads, only 3,600 km are in a maintainablecondition.

5. In support of the country's ERP, GHA which is responsible for trunk roads,developed a road network stabilization program in 1987 with a target of improving thecondition of the trunk roads to 69% good, 21 % fair and 10% poor by 1997. GHA is makingall efforts to meet the stabilization program objective. In 1991 the condition mix was about29% good compared to 229% in 1987; 32% fair compared to 42 % in 1987; and 39% poorcompared to 36% in 1987. From 1987 to 1991, the percentage of good condition roads hasincreased by 7% and the percentage of fair condition roads reduced by 10%, while the poorcondition roads have increased by 3%. Overall this shows a slippage in the stabilizationprogram.

6. The increase of roads in poor condition enta,ls higher investment cost to meet the roadnetwork stabilization program. GHA plans to revise the stabilization program in 1992 toreflect realistic physical targets and financial requirements in meeting the road condition mixplanned to be achieved by 1997. However, because of the magnitude of the required effort,the program period might have to be extended to 1998/99.

7. In 1981, when DFR was established, almost all of the 21,300 km of feeder roadswere in poor to very poor condition. From 1983-1991, DFR has rehabilitated about 3,600km which are now in an all season motorable condition. Assisted by the World Bank andother donor agencies, DFR has developed the NFRRMP which aims at rehabilitation of 8,400km of feeder roads by 1999, bringing the total motorable feeder road network to 12,000 km.

8. The magnitude of the above trunk and feeder road programs, plus the urban roadrehabilitation/improvement program under urban projects requires large construction capacity.A large portion of the rehabilitation and maintenance program requires a well developed localconstruction industry capacity because of the type of work, the geographically scattered natureof the works and the lower standards required on feeder roads which are less attractive tointernational contractors.

9. GHA, DFR and DUR have adopted the strategy of contracting out almost allrehabilitation, improvement and periodic maintenance works and a good portion of routineand recurrent maintenance operations. By doing so they have maintained force accountoperations at a small scale and limit them to activities which are not easily adaptable tocontracting.

10. The move from force account to contracting of road works necessitated thedevelopment of the local construction industry. Under the Road Rehabilitation andMaintenance Project (RRMP 1985-1991), GOG started to provide foreign exchange loans to45 contractors on an on-lending basis for purchase of equipment and spare parts. DFR,supported by donor agencies such as IDA, UNDP and ILO, has trained 27 labor-basedcontractors who were provided with foreign exchange loans for purchase of light equipmentand tools.

- 67 -


C. Past Performance and Problem Areas

11. Over the past five years the "A" and "B" class contractors have participated in GHA,DFR and DUR road contract works up to about 40% of all contract values and about 60% ofthe km-length of road works carried out by contract. Single-man contractors (SMC) arecarrying out over 50% of the routine road maintenance works. The 'A" and "B" classcontractors are starting to play a significant role in the overall economic development of thecountry and GOG's efforts in developing local construction industry capacity has started topay off.

12. About forty contractors are presently participating in resealing and regravellingcontracts under the IDA financed TRP-1 (1988-1992). They bave completed works or 1,620km of trunk roads. Contractor quality of regravelling work has been satisfactory ever thoughthere was a need for more than normal supervision and quality control. However, onresealing works, almost all contractors have found it difficult to meet the required qualitystandards. Assessment of the production capacity of the contractors, in 1991 reveals thatworks were completed on average at twice the period specified in the original contracts.

13. The contractors' problems both in quality and time of completion of contracts can begrouped into the following nine problem areas:

(a) insufficient planning and programming capacity for contract work frommobilization to execution of works, mainly due to lack of experience andeducational level of company managers;

(b) failure to recognize the advantage of employing capable and experiencedproject managers and key field supervisory staff;

(c) failure to recognize the advantage of paying sufficient incentives to workcrews based on production;

(d) poor logistical support for materials, supplies, spare parts and maintenanceand repair of equipment;

(e) low priced bids which resulted in shortage of operating funds and inability tocomplete road works;

(f) government delay in payment during certain periods of the year;

(g) shortage of foreign exchange for purchase of additional equipment and spareparts;

(h) high financial risks in paying back loans due to extreme devaluations of thecedi and very high loan interest rates; and

(i) unfavorable commercial lending practices by BHC.

14. In the past two to three years the local construction industry capacity has been on thedecline such that, unless provisions are made to support the industry in areas of identifiedproblems and constraints listed above, implementation of road work programs could beadversely affected. It is therefore essential for the Government to undertake a carefulassessment of the industry and based on findings to develop a strategy and a plan of action todevelop the capacity of the required number of good performing contractors. The project

- 68 -


provides 18 /rn consultant services for a local construction industry assessment anddevelopment study. TOR for such services are provided in Annex 4-8.

AF4INNovember 1991

(Conlndus.NFR)

- 6s -Annex 3-9

Page 1 of 1

REPUBLIC OF GHANANATIONAL FEEDER ROADS REHABILITATION AND MAINTENANCE PROJECT

DFR Road Work Accomplishments 1983 - 1990

Rehabilitationby Region

Region Road Area Total Feeder (to end 90) (kmRoad Network

(in km) Labor EquipmentBased Based

Greater Accra Accra/Tema 482Ada 335 817 100

Volta Ho 455Hohoe 1,099Keta 794 2,348 142

Eastern Koforidua 388Naawam 247Oda 495Somanya 190Nkawkaw 995 2,315 14 214

Central Cape Coast 880Winneba 805Dunkwa 296 1,981 82

Western Takoradi 581Tarkwa 1,006Sefwi Wiaswo 631Axim 121 2,339 282 478

Ashanti Kumasi 1,534Bekwai 955Mampong 839 3,328 61 168

Brong-Ahafo Sunyani 1,102Berekum 887Techiman 1,368 3,357 53 462

Northern Tamale 943Gambaga 521Yendi 627Sawia 290 2,381 330

Upper East Bolgatanga 639Bawku 313 952 64

Upper West Wa 677Lawra 496Tumu 275 1,448 260

Totals 21,266 410 2,300

WORKS DONE BY OPERATION BETWEEN 1983 AND 1990---------------------------------------------

YEAR REHAB. REGRAVELING RESHAPING CULVERTSkcm km km No.

1983 100 30 1,920 391984 150 55 1,520 371985 65 0 245 31986 130 320 750 621987 305 590 590 2241988 450 630 1,095 4801989 505 260 180 2761990 1,005 425 770 292

2,710 2,310 7,070 1,413

N REPUBLIC OF GHANANATIONAL FEEDER ROADS REHABILITATION AND MAINTENANCE PROJECT

CAPITAL EXPENDITURES AND SOURCES(Cedis Million)

1983 - 1991

CENTRAL ROAD COCOA IDA USAID IDA CEDIS EXCHANGE USSYEAR BUDGET FUND FUND IFAD PAMSCAD APPP CRP/TRP MILLION RATE MILLION1983 526 - - - - - - 526 90 5.841984 738 - - - - - - 738 90 8.201985 - - 30 - - - - 30 90 0.301986 512 207 112 - - - - 831 140 5.941987 400 322 677 - - - - 1,399 190 7.361988 660 380 2,400 - - - - 3,440 230 14.961989 230 915 1,758 288 77 139 356 3,763 300 12.541990 564 817 2,495 700 432 1,200 575 6,783 350 19.38(est.) 1991 450 1,275 2,500 500 300 1,200 1,310 7,535 375 20.10 1

Notes:

1. The above table contains capital expenditures and sources of funding for feeder roads only; cocoa roadsform part of the feeder road network;

2. Central Budget and Road Fund are Government funding sources. The Cocoa Fund comes under the Ghana CocoaBoard (CocoBod);

3. Numbers for 1991 are estimates.

(D nm x

o w

-o

- 71 -

ANNEX 3-11Page 1 of 1

REPUBLIC OF GHANA


FEEDER ROAD NETWORK EXPANSION 1992-1999 (in KN)

........ ......................................................... ...................... ..................................... ........................................

Description C A L E N D A R Y E A R S

- In km - 1992 1993 1994 1995 1996 1997 1998 1999................ ................ ... ......... ........ ....... ........... .......... ... ....... .......... ... ....... ...... .... .. ...........

1. Feeder Roads Fully Rehabilitatedunder Maintenance 3,600 4,800 6,000 7,200 8,400 9,600 10,800 12.000

....... ............ .............. ......................... ...... .. . ...... ....... .. ........ ... ........ ............. ....... .......

11. Feeder Roads to be Regravelted 450 600 800 1,000 1,200 1,400 1.600 1.800........... ................. ............... .............. . ...... ..... ... ....... ... ...... ... ...... ... ......... ....... .......

1. Feeder Road Rehabilitation under:

(i) PAMSCAD 150 100

(Cf) COCOA Road Rehabilitation

a) IDA & COCOA FUND 400 400 200

b) ADF & COCOA FUND 450 400 200 -

Clii) NFRRNP-1(IDA/USAID/DANIDA/GOG) 200 300 800 1.200

CIv) NFRRNP-2 (tentative) I - 1,200 1,200 1,200

SUBTOTAL FULL REHABILITATION 1,200 1.200 1,200 1,200 1.200 1,200 1,200

(v) Spot Improvements uider NFRRMP 180 180 180 180 260 260 260

TOTAL U0RKS 1,380 1,380 1,380 1,380 1.460 1,460 1,460

....... ............................. ............... ...... .. ...... .. ...... .. ...... .. ...... .. ...... .. ...... .. .......

Rehabilitation Works:Labour-Based LCB: 1,000 km x 10,000/km * US$ 10.0 N.CapitaL-Based LCB: 400 km x 18,000/km a USS 7.2 N.Capital-Based ICS: 1,100 km x 23,000/km - US# 25.3 N.

2,500 km costing US$ 42.5 N. in Terms of Base Cost

US$ 42.5 M/2,500 km * US$ 17,000/km in Term of Base Cost

mEiiIZK Ol' GIANA

1adaul f.st R3b 3mW .ad Ml to"es

a,n Wab Cad R

Teadl Pnmm t992 - 1999

TOTAL YEAR I MY 199WUNE IM9 YEAR 2.* JULY 199MUNE 1994 YEAR 3: JULY 199UE 1995

C05314ENT LOC TAXES FORBO TOTAL LUCAL TAXES FORM TOTAL LOCAL TAXES FOREDO TOTAL LOCAL TAXES OREIG TOTAL

NATONAL FEEDERU3AIO S DEVE Or PROGRAM (99199)O Wa O*b - AD flChcedJ

I.M ilebmi et_omILCvkd4mm"Cfe0.o3br 49.79 7.5L 51W7 108.23 7.11 1 m 7.27 Ism 7.11 128 7.27 35.46 7.11 1 A 7.27 15.46b L.h.C amm0a(32113h1 2353 235 7.73 33.61 J3.6 034 1.10 4.0 3.36 034 1.10 4. 3.36 0.34 1.10 4 39Aht1PO RdaMhusk.byCodst 73.31 9.93 58.0 141.84 10.47 1.42 8.37 21.26 10.47 3.42 8.37 2026 10.47 1.42 337 2026

2. hdGaic Mah8mm b Cmab

a. Rgsot rc ,uw PeW5 28.53 434 29.15 622 13.2 0.28 3.6 3.96 2.n 0.37 2.47 5.27 3.25 0.49 3.32 7.06*sdau hdaimamby 28.53 4.34 29.135 62.02 .82 0.28 2.86 3.96 2.42 0.37 2.47 5.27 3.25 0.49 3.32 7.06

3. SPe viau-dum by C-a. spo,mAC4v. CciwO.380h)w 7.47 0.n3 2.18 10.38 0.9 0.09 0.26 1.24 0.89 OD9 0.26 1.24 0.89 09 0.26 124

Sbcb3Spot kpM2.4vs.byCAWg 7.4 0.73 2.18 1038 0.89 em9 0.26 14 0.89 009 0.26 1.24 989 0.09 0 1.24

4. RualbMecmy Cata.uGIDs.hCaah l.17 025 0.18 3.3 0.21 om 0.l 024 0.29 0.02 0.02 0.33 037 om 0.02 0.42b. Chwhe 2.27 0.28 0.13 2.5S 0.15 001 0.03 0.17 0.21 002 0.03 0.24 0.27 0.02 0C2 0.30c. a t 2.27 0.38 0.13 258 0.15 0.03 0.01 0.17 0.21 02 03 0.24 0.27 002 0.02 0.30

t. Felsom ?udf 3.23 0.26 0.18 3.67 0.22 0.02 O0] 0.25 0.30 0.02 002 0.34 0.38 om om 2 0.3b cby 10.94 0.87 0.62 12.43 0.74 0.06 0.04 0.84 3.0 0.08 0.0 1.15 2.23 0.10 00 1.45

S. Rea M by C.waJ AcoJ t

a. 3R t byCeeuc 3.84 0.69 5.32 9.85 027 005 038 0.70 0.37 0.07 0.5 0.94 0.46 Om 0.63 1.17b. 3 ly9moA= 3.9 0.4 4.97 9.21 0.13 002 0.28 0.33 0.26 0AS 0.36 0.6 0.3 em 053 0.99

S _ b _ ebCm 7.43 1.33 0.29 19. 0.40 0.07 0.56 3.03 0.62 0.11 0o6 I02 0.84 0.15 1.17 2.16

BASENATIONAL FEEDE ROADS DEVELOP8'ENT FROG. OSTF 1279 17.20 3IOC.Z 245.74 14.33 1.91 11.10 27.34 35.42 2.07 12.03 29.51 16.74 2.5 13.19 32.18m3HSIALCO aThIGENE 12.77 .72 30.08 04.57 1.43 0.39 1.11 2.73 1.54 0.22 1.0 2.95 1.67 0J3 1.32 3.22W2RI CONT608IElES 21.49 2.90 16.29 4161 1.13 0.15 0.37 1.5 157 021 05 2.3 2.20 0.30 2C9 358

TOTALNATIAL FEE3a ROADS DEVELOPM824 WO. LME 161.95 21.82 127.22 310.99 16.90 2.26 12.57 31.73 I53 2.48 13.82 34.83 2D.61 2.77 15.3D 38.98

>'3

ID XD

01

REPURMOPOHNA

TEdP"amm 1992 -1999

YEAR4 JULY 1993-jUNE 1996 YEAR5: JIULY 1996iE 1997 YEAR JtJLY 19974UNE 199 YEAR?7 JULY 199JUNE 399

a)8N80ENT LOCAL TAXES FORO TOTAL LOC TAXES FOREIO TOTAL LOCAL TAXES FORMG TOTAL LAL TAXES FORM TOTAL

NATIONAL FEEDE ROADS EVELPM1 3'ROG39919991

03lwa9WbO - A1IC.mD

3. Fkd RcbB =byO Com

a. CipCb0-OUbe3 tl I 7.13 357 27 . 5.46 7tl 157 727 15.46 7.11 LOS 727 I5.45 7.11 3.x 727 15.46

b, Lab _&mmft C _lZm O,3W kW 336 0.34 3.30 4.80 336 034 1.10 4.80 336 034 1.10 4.90 336 0.34 1.10 4.80SwFd13 cbMud3 tyCatag 10.47 1.0 837 2D.26 10.47 1.42 837 2026 10A7 1.42 837 2316 30.47 1.42 L37 2026

L. I Mdft by Cwlxm

.8w_Concea o850ba 4<5 0DA2 4.13 B.D 4.85 074 4.96 10.54 5.67 0.86 s.79 32.33 6.47 0.9 6.61 34.06SIdlEd a _u. w by cc 4as 0.2a 4.33 8D 4.85 0.74 4.96 3034 3S7 086 5.79 12.33 6.47 0.3 6.61 14.06

3. Si bq--u-0DwA-by Cr

4S. sp.o d,tD D.c - O3 m bn 0m2 01 02 1.27 129 0.33 03s 1.79 1.29 0.13 033 1.79 329 0.1u 038 1.79fd SpoAt hoo 2 .by C- 0.92 O09 0.27 127 129 0.13 033 1.79 1.29 0.33 033 1.79 t2s 0.13 038 3.79

4. R bmt Ma by Cmua

. G=w.imbCwb 0.45 0.04 0m 0.53 0.53 0.4 o0m3 o.AD o03 O.S 0.03 0.3 0.70 o6 0.04 0.79b. M bC s 0.32 0.03 0m02 0.37 038 o03 002 0.43 0.44 0.04 o03 0t Om 0.04 0 0.57.C rd __ 032 0.0 0.02 0.37 038 0.03 o0m 0.43 0.44 0.04 om 050 o05 0.04 om 037

d .Pw abtm P d 0.46 044 0m 0.2m 0.54 004 0G 0.42 0.6 0.A O4 071 0.71 0G36 0414 oilStbowlRattim naW3ieby C _at 1.55 0.12 009 1.76 1.3 0.15 0.30 2. 21.2 0.17 0.12 2.43 2.41 0.19 0.14 2.73

S. Rbn MMbyCw&JFm AroMaa. 3z bycmm 0.55 0.30 0.76 3.43 0.64 .33 0.89 13.64 0.73 0.13 131 3. 0.82 0.15 1.14 2.11b. bdap&sby Fam Arom 0.51 0Si 0.73 1.32 0.4 0.32 0.89 3.64 0.77 0.34 107 3.97 0.99 0.16 1.24 230

Sa3 RwmUW MAWwn by CoSiJFPA 1.s 0.39 1.47 2.72 1.28 023 1.77 3.29 A s 027 2.0 385 1.72 031 2.38 4.41

BASE NATIONAL FEERDROADS DEVELOPM4ENT PROO. COST l2.5 2.44 14.33 34M2 19.73 266 i58 37.97 216 2.5 16.74 40.64 236 3.m3 17B8 43.27sIIYUCALCNTINOENCIES I3. 0.24 1.43 3.48 1.97 0.27 1356 3410 2.11 03 3.67 446 224 0.3 1.79 4.33

PR3 CONr)N GNlCIES 2.93 0.40 1.93 536 3.56 0.48 2.97 701 4.52 0.63 4A4 9.16 .59 0.76 530 31.6TOTAL NATIONAL FE RROADS DiEVELOPMENT ROO. cxir 22.38 318 17.70 43.56 2526 3.40 2D.12 48.78 27.8 3.74 22.45 53.J7 30.19 413 24.96 5924

oQlG 34

0I

OyUW~ Pau 3911Z-359

IOCAL TAXES FOM TOAL UXD3A1CNG

IDA 0O0 ASSUMEDMATmNAL FEE ROADS ECVEmLOIwr PROGRAM (2199! (USMMOW) Ft 14 NFRi4 3.F. 000 UtSD DNIDA OPEC AIDF IDA GO0 IDA SOI3lE FtNt3XMWabOb - A UDCr Neab * 1&2 &C.S. 3.3 ClP CS. PANSA FUNDG GO

1. 3S V_wby_&.C _ Ob0I, 62.72 9. 43.4 135.70 69.4< 5s4 0 o0m 0n 0n s5 6Oil 12.35 3.9 4.V3 117.0 IBM3. ldat.Cw_ O,343bu) 21.64 2.9f 9.44 42.2 0404 2.00 32. 0 3. 65 0 9.64 42h 0D0 sm Om I= lie om 30 641.43 O0MaalFi3l&ubC_tt 92.36 32.51 7343 177.94 W. MAC 04 1243 12.4 sim 304 19 43 Go 4.7 4 1S9 39.24

2. ~uhmcm tgcamlma.v g 3t G Wa (333 3647 5.56 3733 79.51 D3M 253 0om 9.D 6.60 S.0 om o0m om 0om O9m 10.51t eMaaCsh 36.57 5.56 3733 79.53 23.X 7543 o0m 9.0 6.40 5so O0 on o0 o 0. am t051

3.S1j0&wwwAmd.um yC- gILu S W Cuomo (3.)kw 9.4 0.92 .75 13.15 0o o0m 043 12.0 c0 04.3 om om 3 0om 122D 3.95"_ * Spot _tM-* byC- 9.40 0.92 2.75 13.15 0we 0om o0 312.3 043 o0 o om om Gm 12.3 0.95

4. 3 t a _byILa. 4 0.32 0.3 4.91 oiw 0.00 4. 04D o0m o04 Om o04 Om om 4.0 o mb. D (e_, 2.91 0.3 0.17 330 0em o0m 3.m 0 04 043 043 CAD 043 043 om 330 o043C. (3n C 2.91 0.23 6.17 330 o00 043 330 043 043 omD o04 043 043 O0 3.3 0434. VgibSpd I 4.13 0.33 0.3 4.3 e 43 0om 443 o04 o0m o04 043 o04 o0m om 0.64 o.4-tW R M by Cat 1440 1.11 053 3U.91 4A o0D 15S39 o04 o0m 043 o04 o0 O 043 om 153.9 o0m

5. _a,M tdmav wcJFmm Ao. bb A 4.91 Om 640 12.9 om o04 12.51 o04 om O04 om om o04 043 12.51 om

b y F hmAc 443 03 6.43 1139 0m o0 313 o0m o04 o0 om o0 0 o04 043 1338 o0dRm1 t3 Mat,%b CJFPA 954 3.73 1332 24.47 040 00 2432 043 0m o04 o04 04 0o4 o 2432 0.15

TOTAL tATEDNAL FlEE ROAMS DEVELO3I FRO0. COST I4.95 23J2 127.32 310.99 92. 4543 4021 33A4 94m 3om l0m 3 1943 6m 4.90 DiL 3.0

Notes:1. IDA NFRRMP 162: First and Second National Feeder Roads Rehabilitation and Maintenance Projects2. COG R.F.& C.B.: Government of Ghana Road Fund and Capital Budget;3. COG R.B.: Government of Ghana Recurrent Budget;4. GOG C.F.: Government of Ghana Cocoa Fund;5. Assumed Secured Funding: It has been assumed that IDA, USAID, DANIDA and OPEC would contribute the same amounts w a

for civil works under the second feeder roads project as under the first one. GOG R.F.and C.B.has been decreased while GOG R.B. would cover all routine and recurrent maintenance costs. o 1Funds under ADF, IDA, CRP and GOG C.F. only contribute to the ongoing Cocoa RehabilitationProject.

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REPUBLIC OF GHANA


DFR Equipment Status

1. DFR's strategy for execution of road works is to continue using contractors forrehabilitation, periodic maintenance and portion of the routine maintenance operations.However, there will be need for DFR to continue using force account units to a limited extentfor pothole filling, spot patching, and recurrent road surface blading. DFR has establishedSpot Improvement and Maintenance (SIAM) and Mobile Repair and Maintenance(MOREMAT) units to carry O"f force account operations. The MOREMAT units areengaged in emergency repair and heavy blading works to restore priority access roads forwhich the communities provide fuel and accommodation for the grader and truck operators.Communities have been encouraged to contribute labor and fuel for the SIAM andMOREMAT units to repair access roads of community priorities. DFR will continue to usethese units both for recurrent maintenance operations and community priority road repairworks.

2. The following table provides DFR's equipment requirements, existing, to be replacedand those to be purchased under NFRRMP. The list was assembled on the basis of apreliminary maintenance performance and budgeting system (MPBS) developed during theproject pre-appraisal. It will be refined based on the detailed MPBS which will be developedby consultants financed under NFRRMP. DFR's force account operation involvement will beperiodically reviewed depending on experience of maintenance by contract and extent theequipment is being utilized by the community.

3. At present DFR is establishing three regional workshops and, it has startedrecruitment and training of mechanics to operate the workshops assisted by an expatriatemechanical specialist financed under the PPF provided for NFRRMP. Two mechanicalspecialists will continue their services for 24 months and will assist DFR in establishingadditional workshops in other regions. To ensure adequate provision for the maintenance andrepair of the force account equipment fleet, the project provides funds for workshopequipment and tools and spare parts (see following table).

- 76 - Annex 4-1Page 2 of 2

REPUBLIC OF GHANA


Feeder Road Maintenance and Workshop Equipment. Tools and Spare Parts

To Be Balance Require- EstimatedItem description Requirement Existing Replaced Existing ment cost

________________ ________ NFRRMP US$ '000

1. Dozer 5 2 1 1 4 240

2. Loader 4 4 1 , 1 70

3. Grader 32 84 12 -(40) 0 0

4. Roller 1S 14 5 9 6 240

5. Pedestrian Roller 68 43 10 33 20 260

6. Tractor 120 107 37 70 50 262

7. Water Tanker 34 45 0 45 0 0

8. Water Pump 34 32 2 30 2 5

9. Lowbed Loader 2 2 1 1 1 90

10. Tipper Truck 55 47 2 45 0 450

11. Motor Cycles 100 58 30 28 72 150

12. Four WheelDrive 21 23 13 10 11 240Vehicle

13.Pick up 6(0 71 31 40 20 320

14. Sedan 10 8 4 4 6 90

15. Mobile Radios 47 11 0 11 36 350

16. Wkshop Equipmt 600

17. Wkshop Tools 50

18. Road Maint.,Hand Tools assorted 300

19. Spar Parts 1,000

TOTAL 4,717

AF4INNovenber 1991

(Eqipmcnt.NFR)

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REPUBLIC OF GHANA


Organization and Management Study

Terms of Reference

A. Introduction

1. The Department of Feeder Roads (DFR) of the Ministry of Roads andHighways (MRH) is responsible for the construction, rehabilitation and maintenance of thecountry's feeder roads. There are a total of 21,900 km of classified feeder roads in Ghana.Over the last two decades feeder roads have severely deteriorated due to lack of maintenance,to the extent that most of the roads are inaccessible even in dry seasons. Since itsestablishment in 1981 DFR has grown steadily, and from 1983 to 1991 it has rehabilitatedabout 4,000 km of feeder roads. DFR's plan is to rehabilitate an additional 8,000 km from1992 to 1999 bringing the total rehabilitated feeder road network to 12,000 km.

2. The Ghana Highway Authority (GHA) which comes also under MRH isresponsible for the construction, rehabilitation and maintenance of the country's trunk roads.There are a total of 14,430 km of trunk roads of which 6,000 are paved and the remaining8,430 are gravel surfaced. GHA, which was re-organized in 1974 as an authority isinstitutionally well established and adequately staffed. It has well developed organization andmanagement, and maintenance performance and budgeting systems.

3. DFR which is a comparatively young agency, has its Head Office in Accraand 10 regional and 32 road area offices covering its country-wide responsibility for therehabilitation and maintenance of feeder roads. Establishment of workshops has started infour regions and the future plan is to establish additional workshops on a need basis. Almostall of the rehabilitation and periodic maintenance works are carried out by contract. DFRplans to contract routine maintenance activities to single-man contractors (SMC or length-mansystem). DFR's institutional capacity has developed to the present level without a formalOrganization and Management (O&M) study. The Government now realizes the need forsuch a study based on DFR's institutional development to cope with the fast growingresponsibility.

4. Government has applied for IDA assistance to finance a National FeederRoads Rehabilitation and Maintenance Project (NFRRMP) and IDA has provided funds froma Project Preparation Facility (PPF). Part of the funds v l be used for carrying out an O&Mstudy to strengthen the institutional capability of DFR. 1L' .se TOR are for the consultantservices to carry out this study.

B. Objectives

S. The objectives of the consultant services under these TOR are to:

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(a) determine the most app.ropriate legal instrument to provide DFR withsufficient autonomy for efficient management and monitoring of its operations;

(b) develop the most appropriate organizational structure for both headquarter andfield levels for DFR to efficiently manage and monitor its operations;

(c) determine DFR's work load and level of distribution of civil works betweenforce account and contract to attain a cost effective performance;

(d) develop job classifications, job descriptions and staffing requirements for DFRboth at headquarters and field levels taking full account of its increasingresponsibility in feeder road rehabilitation and maintenance;

(e) develop an appropriate salary scale for each of the job classifications based ona salary scale review of similar jobs in public agencies and the private sector;and

(f) determine DFR's staffing requirements and training needs over the comingfive years to match its increasing work load.

C. Scope of Consultant Services

6. The consultant shall study DFR's requirements in organizational structure,management of its operations, level of autonomy and staff training and recommendimprovements for DFR to operate more efficiently. The consultant shall review all availablestudies and identify strength and weaknesses of the present organizational set up. Theconsultant shall carry out the study in consultation with responsible Government officials andsenior DFR staff. The consultant shall carry out, inter alia, the following:

(a) review th- existing organizational structure and the preliminary O&M studycarried out in October 1990 and recommend the most appropriateorganizational structure for DFR headquarter and field levels;

(b) review DFR's feeder road rehabilitation and maintenance work program forthe coming five years and assess availability of sufficient private sectorcontracting capacity to carry out the program;

(c) assess and recormmend the most cost effective distribution of civil worksbetween force account and contract; and distribution of engineering design andcontract supervision services between departmental force and consultantservices;

(d) develop job classifications, job descriptions and staffing requifements of DFRto effectively implement the program based on work distribution determinedunder (c) above;

(e) review DFR's present functional and administrative relationship with MRHand other relevant Government agencies including relationship with the 110

- 79 -


political districts and 10 regional administrations and recommendimprovements to be made including autonomy to be provided to DFR andthereby to ensure efficiency in DFR's performance;

(f) review policies and procedures DFR is required to follow in procurement;personnel management including hiring, firing and promotion; and utilizationof funds and other resources; and based on the results of the assessment,recommend level of authority to be provided to DFR in the stated areas toensure efficiency and cost effective implementation of the program;

(g) determine DFR's staff training requirements and the interim institutionalsupport requirements and develop a training program leading to self-sufficiency of DFR to carry out its responsibilities;

(h) review present salary scales of DFR, other Government agencies and theprivate sector in the fields of DFR staff; assess its impact on performance andin close consultation with relevant Government Ministries rezommend arevised salary scale for the different job classifications.

7. The consultant, based on his findings will prepare recommendations on themost appropriate organizational establishment of DFR including the option of establishing asemi-autonomous Feeder Road Authority (GFRA) similar to GHA. The consultant shallspecify the advantages of the recommended organizational establishment. The consultant'srecommendations shall include DFR's authorities in planning and programming feeder roadsdevelopment and maintenance; internal administration of personnel, budget and otherresources; and procurement of works, goods and services.

D. Data and Services to be provided by Client

8. DFR will furnish relevant study reports and information on its presentorganizational structure; salary structure; personnel management; budget processing andprocurement policy requirements; position classification and status of staffing; etc. DFR willalso make available office space at its headquarters for consultant's personnel. The consultantshall provide his own secretarial services and office supplies. DFR will provide the necessaryvehicles. DFR will establish an O&M coordination and review committee that will assist theconsultant in obtaining relevant information from Government agencies and that willperiodically review the status of the study as well as assess the approach and practicability ofthe consultant's proposals.

9. The consultant will review the organizational structure of GHA and O&Mstudies carried out for the establishment of GHA including the proclamation establishing GHAand assess its advantages over that of the present DFR establishment.

E. Staffing and Time Schedule

10. It is envisaged that to carry out the above assignment, the consultant willprovide 3 experts who, as a team, should have the following skills:

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(a) a senior public works expert (civil engineer) with considerable experience inmanagement of public works agencies including relevant experience in Africa;

(b) an organization and methods specialist with similar experience as in (a) above;and

(c) a road construction and maintenance work programming and executionspecialist, with adequate experience in road work execution by force accountand contract including supervision requirement in the two methods ofexecution of works, in particular road maintenance by contract.

11. The consultant shall prepare and submit inception and final reports. Thereport submission, review schedules and copies to be provided are as follows:

(a) Inception Report (10 copies): within four weeks of commencement of work inGhana. In the report, the consultant should outline his preliminary findings, anoutline of the forms of organization to be studied and proposed approach andschedule for the remainder of his assignment;

(b) Draft Final Report (10 copies): within three months after receiving commentson the Inception Report;

(c) Final Report (25 copies): within six weeks after submission of Draft FinalReport. Comments will be provided on the draft Final Report within threeweeks after submission; and

(d) proposed terms of reference for follow-up technical assistance to helpimplement the recommendations together with the Draft Final Report.

AP41NNovember 1991

(O&MStudy.NPR)

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REPUBI OQF 9J,NA

NATIONAL FEEDER ROADS REHABILITATIJN AND MAINTENANCE PRO.ECT

Feeder Road Maintenance Performance Budgeting System

Terms of Reference

A. Introduction

1. The Department of Feeder Roads (DFR) of the Ministry of Roads andHighways (MRH) is responsible for the construction, rehabilitation and maintenance of thecountry's feeder roads. There are at present some 21,900 km of classified feeder roads inGhana. Over the last two decades or so, most feeder roads have deteriorated to an extent thatmany are inaccessible even in the dry season. DFR has rehabilitated about 4,000 km offeeder roads from 1983 to 1991 and plans to rehabilitate an additional 8,000 km from 1992 to1999, bringing the total of maintainable feeder roads to 12,000 km.

2. Trunk road construction, rehabilitation and maintenance in Ghana is theresponsibility of the Ghana Highway Authority (GHA). It is responsible for a total of 14,430km of trunk roads consisting of 6,000 km of paved and 8,430 km of gravel surfaced roads.GHA, which was established in 1974 as an authority, is well developed institutionally and hasa maintenance performance and budgeting systems.

3. DFR has its headquarters in Accra and 10 regional and 32 road area offices tocover the country-wide feeder road network. It is, at present, establishing four regionalworkshops. It has a total of 1,431 employees of which 36 are graduate civil engineers. DFRcarries out all rehabilitation and periodic maintenance and a portion of the routinemaintenance works by contract. Its force account operations are limited to road surfaceroutine and recurrent maintenance and emergency-repair operations. DFR does not yet have awell developed feeder road maintenance performance and budgeting system for preparation ofannual work program and related budgets. At present, programming and budgeting are beingdone on experience basis with no systematic assessment of requirements. With the networkunder maintenance expanding and the rehabilitation program increasing, the need for a welldeveloped maintenance performance and budgeting system (MPBS) has become indispensable.

4. The Govermment has applied for IDA assistance to contribute to the finance ofa National Feeder Roads Rehabilitation and Maintenance Project (NFRRMP). IDA hasalready provided funds for project preparation which is in an advance stage. A portion of theproject funds will be used to finance consultant services for the development of an MPBS.The scope of these services is defined in these TOR.

B. Objectives

5. The objectives of the consultant services under these TOR are to:

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(a) develop a methodology for determining annual road maintenance programsand budget requirements covering activities making up about 90% of fundsrequired for maintenance taking into account factors such as traffic density,axle load, weather, climate, terrain and age of the feeder roads;

(b) determine feeder road maintenance work loads based on (a) above and specifydistribution of the work loads between contract and force account taking intoaccount availability of labor-based and equipment-based contractors; the costeffectiveness of the two methods of execution of work; appropriateness ofactivities for measuring, quality control, supervision and packaging forcontracting;

(c) determine funding and resource requirements to carry out the work loadsunder (b) above subdivided into contract and force account operations. Forthe force account operation determine DFR's requirement for regular andseasonal labor force; equipment and vehicles; hand tools; and road materials;

(d) develop an MPBS computer program for annual work programming andbudgeting for both contract and force account operations includingdetermination of labor, equipment, tools, and materials requirements for forceaccount operations.

C. Scope of Consultant Services

I. General

6. The Consultant shall examine existing feeder road inventory and conditionsurveys, collect data on factors related to feeder road maintenance work programming, costdata and other works herein described, as required to achieve the stated objectives. Inconducting his work, the Consultant shall collaborate closely with MRH, DFR and regionaladministrative officials. The Consultant shall also conduct desk studies regarding O&Mstudy, GHA's MPBS, and DFR's staffing plan and administrative and accounting systems.The Consultant shall be solely responsible for the interpretation of all data and studies to bereviewed and for his findings and recommendations contained in his report.

II. Road Inventory and Condition Survey

7. The Consultant shall carry out an inventory and condition survey on all feederroads under maintenance applying technically sound procedures. The Consultant shalldevelop an appropriate and technically acceptable format and procedure for the feeder roadinventory and condition survey and the task will cover, inter alia, the following road features:

(a) type of road surface and width;

(b) road shoulder width, length and surface type;

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(c) side, toe, and secondary ditches by shape of construction (V/U), paved andunpaved, and lengths;

(d) bridge structures by type of construction, size and location;

(e) culverts by type of construction, size, and location;

(f) fill and cut sections by depth and height, location and lengths; and

(g) condition survey for each of the above features recording maintenancedeficiencies for each of the defined maintenance activities.

8. The Consultant shall identify all feeder road maintenance activities making-upabout 90% of the annual road maintenance fund requirements and shall produce a clear andtechnically acceptable definition for each of the identified activities. The Consultant shallspecify technically acceptable measurement units for each of the identified activities.

in. Maintenance Work Program

9. The Consultant shall develop a five year feeder road maintenance workprogram covering roads presently under maintenance and those to be rehabilitated during thefive year program period. The program shall be subdivided by road area and road linksnormally used by DFR for identification. In developing the program, the Consultant shalldetermine annual quantity standards for each of the activities considering factors contributingto the frequency of the maintenance activities such as:

• age of the feeder road;

* climatic conditions - dry, moderate, wet;

* terrain condition - flat, rolling, mountainous;

* quality of surface materials;

• average daily traffic - up to 30, 30 to 50, 50 to 100 etc.; and

* frequency of occurrence of each activity.

10. The Consultant shall defme the method used to develop the quantity standardsshowing weightings applied to the above listed factors in determining the quantity standards.For example, the condition of road surface is affected to a high degree by traffic, rainfall andquality of road surface material and to a lesser degree by terrain and age. The Consultantwill give weightings to relevant factors to show their effect in the occurrence of eachmaintenance activity.

11. The Consultant, based on the developed quantity standards and the roadcondition survey, will calculate total annual work programs for the roads under maintenancefor each of the five year program period. Seasonal peaks of quantity of work will be leveledover the number of working days available to execute each of the activities. This would mean

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that ditches eroded or filled with sediments will have to be corrected before the next rainyseason starts.

12. The Consultant shall identify the maintenance activities which are appropriateand easy for contracting and group the total work program into contract and force accountmethods of execution. The Consultant in specifying maintenance activities by contract shallconsider availability of equipment-intensive, labor-intensive and length-man contractors toexecute the work. The Consultant shall also provide methods for quantifying and packagingworks for contract, technical specifications, contracting and supervision of contracts,procedures for quality control, and method of measurement of works done as well as contractwork payment system and frequency.

IV. Methods of Work

13. The Consultant shall develop methods of work to be used to carry out each ofthe maintenance activities. The methods of work shall describe the tasks ̂ o be performed tocomplete the work of a maintenance activity. For example, the method of work for spotpatching/gravelling could include placing of signs to protect the workers, shaping the potholesto retain the material to be added, hauling and dumping gravel at appropriatL places,spreading of gravel in the potholes to required level, compacting the spread material,removing any excess material and removing the traffic signs. The work method shouldclearly define each of the tasks to be performed to attain a good quality of finished work.

V. Work Force

1.4. The Consultant shall develop the composition of equipment, tools and laborrequired for a typical work force needed to carry out each of the maintenance activities. Thework force will be developed for all maintenance activities assuming that contractors will beused to carry out all activities. For short distance gravel haulage the Consultant will consideruse of farm tractors with trailers and for long distance haulage appropriate size of tippers.Hand tools would be those normally being used in Ghana. For material production andloading the Consultant will consider the cost and benefit as well as the factor of mobilitybetween loader and dozer combination and that of using a traxcavator to do both operations.

15. The Consultant shall determine hourly production rates for each work forceand convert the hourly production rates to daily production rates taking into account traveltime to and from work. Then from the daily production rates the annual production rates willbe calculated using the actual working days available in a year by subtracting officialholidays, weekends etc.,. To develop the production rates for the work force, the Consultantshall carry out a survey on production rates presently being achieved by GHA and DFR workforces and contractors working for GHA and DFR. The Consultant shall adjust the ratesobtained from the survey using his experience as well as by averaging variations in the surveydata.

16. The Consultant shall, based on the work force developed, calculaterequirements of equipment by type and size, tools by type and labor force by job classificationfor the total program for the five year program period subdivided by road area and road link.First the total force input for each of the five years will be calculated for the total annualprogram and then requirements per specified operation will be separately provided. Where

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only a fraction of an equipment is required in a road area the sharing road areas will bespecified taking into account the mobility of the equipment.

VI. Maintenance Costs

17. The Consultant shall develop maintenance cost per unit measure for each ofthe identified activities using the production rates developed for each work force under para.15 above and by adding cost of materials and considering that all activities will be carried outby force account. The unit costs developed will be adjusted to reflect headquarters and fielddirect overhead costs. The cost will be broken down into equipment, tools, labor andmaterials. The equipment cost shall show the equipment owning and operating costsseparately. The Consultant shall then convert the force account unit costs to contract unitcosts by applying relevant variations between the two methods of operation such as profitmargin, business tax etc., which are not considered for force account costing.

18. The Consultant shall, using the unit costs, calculate the cost for the totalprogram broken down into the following three categories:

(a) total program cost using force account unit costs;

(b) total cost of works specified for contract using contract unit costs; and

(c) total cost of works specified for force account using force account unit costs.

VII. MPBS Computer Program

19. The Consultant shall develop computer programs for the effective applicationof the MPBS. The program should allow entry of basic MPBS data on road inventory,condition survey, quantity standards, work force composition and unit cost per unit measure.From such basic data, the computer program should establish: (a) work program by activityfor country-wide, road area and individual road link; (b) work force requirements brokendown into the force composition for total country, for each road area and individual road link;(c) annual road maintenance fund (budget) requirement by activity for country-wide summary,by road area and by individual road link.

20. The computer program should allow entry of work accomplishment andexpenditures for each activity for specific road links and be able to give comparison betweenphysical accomplishment and target and budget allocation and expenditures. It should alsoprovide a system of carrying forward backlog in program accomplishment to the next yearprogram. Such carry forward backlogs will be checked and compared with annual roadcondition survey and the program should allow for adjustment of basic data. inputs on quantitystandards, work force, production rates and unit rates shall be arijusted.

VIII. Implementation of the MPBS

21. The consultant in consultation with DFR shall select an appropriate pilot roadarea to test the MPBS. DFR will ensure that the pilot road area has sufficient qualified staffto understand and test the MPBS. DFR will also arrange that other road area staff areperiodically sent to the pilot road area and receive training by the consultant on the

- 86 -


implementation of the MPBS so that they will be fully trained to introduce the system in theirown road areas as soon as the country-wide implementation of the MPBS starts. Based on theresults obtained in the pilot road area, the Consultant shall adjust the MPBS data inputs toensure that the system does reflect as much as practically possible the actual field conditions.The Consultant will develop a program of action for DFR to implement and monitor theMPBS country-wide.

IX. Key Personnel and Time Schedule

22. The Consultant shall develop the MPBS within six months of start ofassignment in Ghana and shall test the MPBS in a selected pilot road area over a twelvemonths period thereafter. The services are estimated for input of 43 man-months. Theconsultant is free to propose his own composition and duration of assignment of keypersonnel. The client-proposed composition and duration of assignment of key personnel is asfollows:

(a) Civil Engineer/Team Leader: - with at least 15 years of experience of whichthe last seven years should be in road maintenance programming andmanagement, portion of which should be with a public works agencyresponsible for roads. He shall have sufficient experience in an up to datecomputer based road maintenance performance budgeting system and hasabout three years cumulative work experience in the Africa Region - for thefirst ten months on continuous basis and intermittently another six monthsduring the pilot road area testing of the MPBS;

(b) Budgeting and Cost Accounting Specialist: - with at le2st 15 years experienceof which 7 years are in public works agencies responsible for roadconstruction and maintenance - for six months during the development of theMPBS and for the last two months of the MPBS pilot road area testing;

(c) Computer Systems Specialist for four months intermittently as required;

(d) Civil Engineer: - with at least 15 years experience of which last eight yearsshall be in road construction and maintenance and has at least three yearsexperience in Africa Region - for 12 months during the pilot road area testingof the MPBS; and

(e) Equipment Specialist: - with at least 15 years experience of which eight yearsare in road construction and maintenance equipment - for three months duringthe system development period.

X. Training

23. The full benefits of the MPBS will be captured only if the right caliber and sufficientnumber of DFR staff are fully trained on the development and application of the MPBS; onthe development and application of the computer program; and on the methods of updating theinput data. The Consultant shall give due attention to the training requirement under thisassignment, and DFR will ensure that required caliber of counterparts are assigned to theConsultant from the start of the services. The Consultant and DFR will select the right

- 87 -


counterparts based on selection criteria that will be developed by the Consultant and agreedupon by DFR. DFR will ensure that the counterparts will continue to work on the tasksafter the Consultant has left Ghana. DFR's MPBS staff will train their replacements in theevent that they have to change their assignments.

XI. Reports and Time of Submission

24. The Corsultant shall submit the following reports at the times specified foreach:

(a) Inception Report (8 copies): - within six weeks after start of assignment inGhana;

(b) Road Inventory and Condition Survey Report (12 copies): - within threemonths after start of assignment in Ghana;

(c) Draft Maintenance Work Program Report (8 copies): - within six months afterstart of assignment in Ghana. DFR will provide the Consultant its and Bank'scomments on the draft report within one month after submission by theConsultant;

(d) Final Maintenance Work Program Report (20 copies): - within seven monthsafter start of assignment in Ghana;

(e) Draft Report on Method of Work and Work Force (8 copies): - within fivemonths after the start of assignment in Ghana. DFR will provide theConsultant its and Bank's comments on the draft report within one month aftersubmission by the Co: isultant;

(f) Final Report on Method of Work and Work Force (20 copies): - within sevenmonths after the start of assignment in Ghana;

(g) Draft Maintenance Cost Report (8 copies): - within eight months after start ofassigrnment in Ghana. DFR will provide the Consultants its and Bank'scomments on the draft report within one months after submission by theConsultant;

(h) Final Maintenance Cost Report (20 copies): - within ten months after the startof assignment in Ghana;

(i) Draft MPBS Computer Program Report (8 copies): - within six months afterstart of assignment in Ghana. DFR will provide the Consultant its and Bank'scomments within one month of submission by the Consultant;

U) Final MFBS Computer Program Report (20 copies): - within eight monthsafter start of assignment in Ghana; and

- 88 -


(k) PMBS Implementation Report (8 copies): - Two months before MPBSimplementation for testing in a pilot road area ends.

AF4INNovember 1991

(PerBudSy.NFR)

- 89 -

Annex 44Page 1 of 3

REPUBLIC OF GHANA

NA=TNAL FEEDER ROADS REHABIfITATION AND MAINTENANCE PRO.ECT

Monitoring and Evaluation

Terms of Reference

A. Background and Introduction

1. The Government of Ghana and IDA intend to monitor the NFRRMP in order thatexperiences gained can be taken into account in ongoing projects and other future projects such as theproposed German grant for rural roads in Northern Ghana. The indicators to be monitored have beencompiled from experiences gathered by DFR from the many projects that it has handled in the recent pastincluding the Sefwi Wiawso Pilot Labour-Based Project and other donor assisted projects.

2. Reliable estimates of the NFRRMP impacts on agricultural production and productivityas well as other sectors of the economy would require detailed sample household survevs. The samplesize will have to be carefully selected such that both accuracy and reliability are not sacrificed in muchthe same way as not to make it too expensive. In view of the geographical spread of the NFRRMPprojects areas, it may not be possible to undertake a baseline study of all road areas and, hence, otheravailable data in DFR collected by consultants, as well as secondary data, should be used as much as

i possible and inferences made, where possible.

3. Methodology to be used in monitoring the program will be developed by economicconsultants to be engaged to assist with data collection. The project will also be designed such thatDFR's district and regional offices would be responsible for monitoring physical progress, technicalperformance of project components, and the performance of contractors.

4. Objectives of Monitoring:

(a) to measure economic impacts of feeder roads improvement on the areas served and tocompare these with the costs of rehabilitation and maintenance;

(b) to monitor project performance and provide data needed for estimating actual ERRs onfeeder roads selected for rehabiiitation and maintenance;

(c) to measure changes in agricultural production of specific crops brought about as a resultof improved access;

(d) to measure increasces in ADT volumes and any changes in farm gate prices of agriculturalproduce attributable to improved access;

(e) to provide other data which will assist DFR to improve upon its method of pre-selectingfeeder roads for investment;

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Annex 44Page 2 of 3

(f) to provide DFR with a scientific basis for assessing the performance of all NFRRMPcomponents.

B. Scope of Work

5. Data to be used in monitoring and evaluating the NFRRMP will be supplemented withsecondary information. Specialized consultants will be used in collecting primary or survey data but DFRwill attach counterpart staff where possible.

6. The consultants to be engaged will help DFR define a cost-effective method to measureprogram impacts and also define measurable indicators, selection of appropriate sample sizes, design andpre-testing of questionnaire as well as the collection of data. Consultants will ensure that the samplingmethod, frame and procedure capture both daily and seasonal variations.

7. From empirical evidence available at DFR, impacts of road improvement will include thefollowing: increase in agricultural production, reduction in transport cost, reduction in head porterage anAshifts in modal usage, increase in traffic volume, employment generation as well as other non-quantifiablebenefits.

8. Attempts will be made to isolate the impact of improved access on different types of cropswithin the project road areas. This will be done considering sampled farm families and standardizingfarm and family sizes. Consultants will ensure that appropriate farm models are used.

9. Increase in traffic volumes will be assessed on the basis of traffic surveys, taking accountof vehicle types and modal usage. Duration, times and survey points are to be determined by consultants.Attempts will be made to estimate both generated and diverted traffic by analyzing the rural road networkanid the conduct of an origin and destination survey.

10. Transport costs are to be estimated from surveys of road users on project and non-projectroads using data gathered before, during and after the NFRRMP. Distances covered by vehicles as wellas the cost and extent of head porterage are to be assessed.

11. Consultants will be required to develop other measurable indicators for project monitoringin broad sectors such as non-agricultural production, income, crop marketing and commerce, social,institutional and demographic changes. The real importance of the NFRRMP is its impact on agricultureand the other sectors, and not the other changes they cause directly. This basic principle is therefore toguide consultants in the choice of variables for the monitoring and evaluation. The emphasis ofmonitoring and evaluation will be on these social, economic and related variables wh;ch are essential toobtain better estimates of the impact of NFRRMP.

C. Manpower Requirements

12. The study is initended to be undertaken by a consi'lting firm. Each shortlisted firm willbe required to propose a team comprising, but not limited to the following:

* Project Coordinator;

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* Agricultural Economist;* Regional Planner/Transport Planner; and* Systems Analyst/Statistician.

The monitoring and evaluation component of the NFRRMP will require about 27 person-months ofconsultants' efforts.

13. Schedule of Activities:

(a) Development of consultant's work plan. This should include a detailed methodology ofthe study plus schedule of all interviewing forms, dates and monitoring plan.

(b) Submission of Inception Report one month after signing contract.

(c) Annual reports covering all monitoring topics and indicators as outlined above.

(d) Major report would be prepared before project mid-term review on the basis of availableinformation on all project indicators.

(e) Preparation of sections of the Project Completion Report which would contain the-economic evaluation of the project and summaries of the main conclusions as regardseconomic benefits and costs as well as other conclusions and appropriaterecommendations.

AP41NNovember 1991

(MoniEval.NFR)

- 92 -


REPUBLIC OF GHANA


Recommended DFR Organization

A. DFR's Institutional Status

1. The assignment of feeder road functions to a single institution is entirely appropriate.It ensures that feeder roads are not neglected in favor of trunk roads. Responsibility forperformance is not diffused over a number of agencies and therefore accountability is more easilyachieved. DFR's separate status has allowed it to develop a successful labor-based technology anda philosophy of promoting private contractors. There is therefore no case for any fundamentalchanges in the structure of responsibility for feeder roads. The proposed formal 0 & M Study willbuilt on the recent DFR organization analysis, which was executed as part of project preparation,and will thoroughly analyze DFR's institutional capacity as needed for the implementation of the 8year NFRRMP.

B. Headquarters Setup

Proposed Planning and Contract Administration Division

2. This new division would comprise the existing Planning, Quantity Survey andAccounts Sections. Its functions would be:

(a) Project Preparatvon

* Project identification* Feasibility studies* Tender documentation* Procurement of consultants, equipment and works including calling of bids, evaluation

and award* Checking of tender documents, bills of quantities, etc. produced by the regions or

consultants

(b) Financial Control and Allocation

* Account for funds spent* Report to donors on disbursement* Monitor disbursements, compare to programs, check for expenditure performance, etc.* Ensure availability and allocation of programmed funds* Check and prepare payment certificates as necessary* Create and maintain assets register

(c) Monitoring

* Devise and operate arrangements for effective monitoring of implementation andphysical performance, including computerized databases

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* Prepare and implement DFR's computerization program| Organize collection of unit cost data for use for budgeting and preparation of Bills of

Quantities

(d) Planning and Budgeting

* Provide guidance to regions on planning and budgeting for feeder roads* Coordinate and prepare annual budget for all categories of expenditure* Develop a planning methodology for use by the regions which will integrate

rehabilitation and maintenance operations into a physically and financially sustainablenetwork

* Review action plans prepared by regions using the methodology* Coordinate action plans into a sub-sectoral strategy

3. There are a number of important features to note about the proposed division. First, itwill combine the three disciplines: quantity surveying, planning and accounting which haveimportant linkages and interrelationships throughout the project cycle.

4. Second, it will act as a common resource or service unit for both the existingDevelopment and Maintenance Divisions. This will help ensure that no bias develops towardseither kind of activity. It will provide monitoring information on physical performance which isessential for both divisions to carry out their activities. The mechanical and procurement sectionsof the Maintenance Division will have a strong linkage so as to ensure that its procurement ofequipment is coordinated with the implementation of donor supported programs.

5. Third, the creation of the new division will not remove the need for support by acontract management specialist to assist in DFR's procurement operations. Much of the work to becarried out by the contract management specialist is of a mechanical, albeit complex nature. It isessential work for the efficient implementation of donor supported projects. There is neither thecapacity nor experience within DFR to do this work. It is clear that a more concerted trainingeffort should be made in order to ensure that DFR can carry out these functions in the future. DFRquantity survey and accountancy staff of the appropriate training and experience will need to beattached to the contract management specialist.

6. Fourth, there remains the issue o1 now much pre-contract work can be undertaken inthe regions. It is desirable that as much as possible is done at this level. Almost by definition,procurement of consultants has to be carried out at headquarters. However, judgement will need tobe made on a case-by-case basis as to whether a region has the capacity to undertake procurementof all local works contractors. This will depend on staffing quality and quantity, their existingworkload, familiarity with donor procurement procedures, and the workload involved in the projectconcerned. If work cannot be undertaken in the regions, it should be done by consultants.Checking of such work will always have to be done at headquarters, but the work itself shouldrarely, if ever, be undertaken there.

7. ED, staffing for the new division will need to be augmented. The chief quantitysurveyor has iimrited line support. As soon as possible, senior staff should be hired to fill existingpositions within the organization. If necessary, this should be done through contract appointments.The conversion of DFR to a subvented authority would make such action easier.

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Existing Development and Maintenance Divisions

8. The Development and Maintenance Divisions should continue to operate in the flexibleway in which they do at the moment. However, they should be prepared to cooperate in ensuringthat there is a proper baiance between their two activities at regional level and that planning byregional staff is give l a high profile. The Administration Division would contain personnel andtraining, and administration sections only.

C. Regional Setup

Planning

9. The role of planning at regional level needs to be promoted. Therefore, training needsto be given to regional engineers who will ultimately have to take responsibility for planning. Theyalso need to be given the support of a small Planning and Programming Unit. The function of thisunit would be to:

* make an inventory of feeder road conditions in the region;

* determine feeder road priorities in the region, in close coordination with DistrictAssemblies;

* devise costed maintenance programs (Action Plans) which maximize unit costefficiency and concentrate on the top priority feeder roads in the network;

* determine rehabilitation and periodic maintenance requirements in the context of likelyavailable resources to maintain the whole priority network and incorporate into ActionPlans;

* prepare annual budget proposals;

* provide planning advice to District Assemblies and their District Road Committees onfeeder road prioritization and incorporate community preferences into Action Plans andbudgets.

10. It is envisaged that a typical Planning and Programming Unit would have a staffingcomplement of three comprising a transport planner/economist and a civil engineer, supported by atechnician.

Donor Support Strategy

11. There should be maximum possible devolution of responsibility to field level.Concern has already been expressed that a number of regions are below strength and that therehabilitation program could place additional strains on maintenance capabilities. It is a matter ofconcern that projects designed to enhance maintenance capability do not mesh with rehabilitationprojects nor priority maintenance requirements.

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12. There is a considerable degree of complexity in current donor support arrangementswhich impose a complicated management burden. It is therefore difficult to determine how thevarious donor projects reinforce institutional capability, if at all. Future donor arrangements needto be more clearly focussed on supporting institutional strengthening and promoting effective fieldmanagement.

13. To achieve this end, it is therefore suggested that:

* there should be a reappraisal of the regions in which NFRRMP activity is initially tobe concentrated;

* rehabilitation programs should not be expanded into new regions before those that areinitially selected are fully operational;

* first priority should be given to those regions which combine a high proportion ofmaintainable roads and high agricultural potential rankings derived from socio-economic studies;

* NFRRMP concentrates on developing overall capacity within selected DFR regionalorganizations, including the creation of convincing maintenance capacity, as anessential precursor of rehabilitation operations.

14. It is proposed that NFRRMP concentrate initially on Central, Ashanti, Brong Ahafo,and Northern regions. Special arrangements currently apply to Sefwi Wiaswo, which shouldcontinue given that the labor-based contractor program was started there, but the general upgradingof the regional organization should not receive priority. The same argument must apply toKoforidua, as it would be undesirable to move the labor-based training school again.

15. Likewise, there should be reconsideration of the priority given to the Upper Westregion. It is realized that this may prove a difficult issue, but it should be understood that the priceof going ahead in this region may be the neglect of a maintainable road network in another region.

16. The entire program for regional institutional strengthening between 1991 and 1996 isas follows. This has been developed by comparing the maintenance priority targets with theprioritizations of road areas resulting from the socio-economic analyses undertaken for NFRRMP:

1990/91 Ashanti, Brong Ahafo, Central, plus Sefwi Wiaswo and Koforiduaroad areas.

1992 Northern.1993 Eastern, Upper West.1994 Upper East, Greater Accra.1995 Volta.1996 Western.

AF41NNovenber 1991

(DFROWan.NFR)

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Annex 46Page 1 of 4

REPUBLIC OF GHANA


DFIR Starrng Requirements

A. Regional Level

1. The following table projects demand and supply for engineers in the regions. It isbased on numerous assumptions in addition to those mentioned in the notes to the table, forexample, on the numbers of extra staff needed to implement NFRRMP in the field.

DFR Regional Staffing Requirements - Professional Engineers

Note 1991 1992 1993 1994 1995 1996

Minimulm Requirement 1 45 46 47 49 50 50

Cocoa Rehabilitation 2 4 4 4 4 4Project 24 4 44

Other Projects 3 5 5 3

NFRRMP = = 5 10 10 10 10

Totals 54 60 164 63 64 60

Staff inPost 4 33 38 43 48 53 58

Postgraduate Training 1 1 1 2 3 3 3

Shortfall 22 23 118 18 14 5

Notes: I. This figure includes all engineers needed for basic administration, SIAM,MOREMAT, etc.

2. DFR engineers on attachment to consultants.3. TRP-1, TRP-2, PAMSCAD etc.4. Assumes intake of 6 graduate engineers per year, al; allocated to field positions,

with attrition of 1 engineer per year.

2. It is estimated from the table that the ultimate field establishment of professionallyqualified engineers should be 60. This total would cater for normal, not peak, workloads, over theNFRRMP project duration, assuming that the workload will not alter significantly after 1996. Italso broadly incorporates the principles regarding the proportional assumption of design andconstruction supervision responsibilities by DFR and consultants. In the above table, it is assumedthat this consultancy input for construction supervision will mainly be absorbed by the CocoaRehabilitation Project throughout the projection period.

3. Before the theoretically desirable staffing complement is achieved, there will be aserious shortfall of DFR staff, especially over the short term. This is clearly indicated in the above

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table. Unless management of ongoing maintena'ce operations is relinquished in a number ofregions, almost all construction supervision must be undertaken by consultants over the projectionperiod. Even then, staff numbers will be barely sufficient to run minimum requirement needs onthe basis of existing staffing ratios and the implementation programs for strengthening of regions(see Annex 4-5). This means that consideration must be given to one, some or all of the followingalternatives:

* that some staff must "double up" and accept additional responsibilities;

* that the program for NFRRMP must be slipped;

o that induction and training of new staff must be stepped up over the next three years;

* that technician engineers are used more frequently in place of professional engineerswhere shortfalls occur;

* that additional consultants or technical assistance must be hired to meet the shortfall.

It is suggested that, under all circumstances, there is a reworking by DFR management of theprojection shown in the above table once the NFRRMP implementation starts.

4. It is not so straightforward to predict requirements for other important groups of staff.The current role of technician engineers in particular is largely to substitute for civil engineers.Their major formal task within the current structure is to act as road area engineers, for which thereare ultimately 32 positions available. They will be required to oversee MOREMAT units once theyare fully set up, which will require another 10 positions. There are 17 technician engineerscurrently employed in DFR, with a ceiling of 37. This number includes all mechanical andgeodetic as well as civil technician engineers. Approrimately 25 additional positions for civilengineer technicians will be required to cope with a fully fledged regional network.

5. The demand for foremen is very high. The present output of trained foremen isinsufficient to meet the scheduled contractor output and support the proposed program of regionalinstitutional strengthening. A revision is proposed to the training program for foremen, involving areduction in the numbers of contractors (and consequently contractor supervision foremen) trainedin 1992/3. The impact of this is shown in the following table. This will allow the phased programfor the introduction of SIAM, MOREMAT and community-executed routine maintenancearrangements to be properly staffed. The only training of foremen that would be needed after 1996would be to compensate for natural wastage from the workforce, or for in-service training. Thisrevised training program has been reflected in the projections of labor-based contractor capacity.

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Annex 46Page 3 of 4

Foreman Manpower Requirements (Revised Training Program)

1990/91 1992 1993 1994 1995 1996

Regions subject to Ashanti Northern Eastern Upper Volta WesternComprehensive Brong Ahafo EastUpgrading Central plus Gr. Accra

Sefwi WiaswoI ____________________ Koforidua __I

NumberofRoad 11 4 7 4 3 3Districts l

Number of Political 50 13 16 11 12 8Districts I

No. of SIAM Foremen 22 8 14 8 6 6- Towed Grader andCulvert Teams l

No. of District 50 13 16 11 12 8Foremen

No. of MOREMAT 14Foremen (1) _ _ _

No. of Contractor 49 12 12 12 12 12Supervision Foremen

Total Annual 33 42 31 30 26Additional DFRForemen Required

Total DFR Foremen 135 168 210 241 271 297Required

Total Trained (2) 86 118 150 182 214 246

Shortfall 49 50 60 59 57 51

Notes:(1) No. of MOREMAT units reduced from 18 originally estimated by DFR to 14(2) Assumed annual output of training program at Koforidua is:

48 contractors staff (= 12 contractors)12 contractor supervision foremen20 other DFR foremen

B. Headquarters

6. The major new initiative recommended for headquarters is the creation of a Planningand Contract Administration Division. Otherwise there is little need seen to change the current

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Annex 4Page 4 of 4

headquarters administrative structure. There are a number of unfilled posts at headquarters. Theseneed to be filled as soon as possible, through outside recruitment or short-term consultancies.Particular mention needs to be made of the need to fill all vacancies in the Survey and DesignSection and Quantity Survey Section. There will be an additional need for ongoing technicalassistance to the Quantity Survey Section.

C. Staff Availability

7. Some 40 civil engineers graduate each year from the Civil Engineering Department atthe University of Science and Technology in Kumasi. DFR is a favored destination of recentgraduates and there are no problems in recruiting six new graduates each year. It is doubtfulwhether DFR could cope with a larger influx than this. It is likely that, as the organizationbecomes more mature, the possibilities for fast-track professional development that now exist willbecome less common and consequently DFR will have to compete harder to attract graduateengineers.

8. Twenty diploma holders are produced each year by the UST. The general demand forthese is not as strong as for civil engineers. DFR should be able to recruit for its needssuccessfully from amongst this group.

AR4INNovember 1991

(DFRStaff.NFR)

- 100 -


REPVBLIC OF GHANA

NATIONAL FEEDER ROADS REHABILITATION AND MAINTENANCE PRQJC

DFR Traininm Program

A. In-Service Training

1. The labor-based training course that is now run from the Koforidua Training Institutehas been highly successful. It is intended that technical assistance by external agencies such as ILObe provided for the institution. The success of Koforidua should be used to provide an anchor for abroader training ;nitiative. If training is to be successful, it should have a permanent base tooperate from and a constituency continually promoting it. Otherwise it is almost inevitable thattraining will be relegated to last priority as more urgent, shorter term considerations crowd it out.

2. It is therefore suggested that a project is designed to define the scale of investment inbuildings, plant and permanent staff complement needed to run Koforidua as a full-time traininginstitution. This should be accompanied by a full financial plan, including assessment of chargesthat should be levied. It is expected that the training institute will continue to run courses in labor-based technology for contractors and DFR staff. Interest in attending such courses may be attractedfrom other West African countries or they may wish for their instructors to be trained. There isscope for liaison with the Civil Engineering Department at the University of Science andTechnology at Kumasi to instruct undergraduates. GHA may also wish to participate. It isexpected that the institute would take the lead in providing in-service training for DFR staff at alllevels.

3. DFR has already devised an in-service training program for 1991 and will continue todo so every year. It comprises induction courses for new recruits as well as training for moreexperienced staff. Details are shown in Attachment 1. The induction courses are designed to givenew staff exposure to all relevant aspects of DFR organization over a 24-month period. It is wellthought out and requires no further comment.

4. The topics proposed for training more experienced staff are quite comprehensive. Theorientation of the training topics emphasizes technical skills. However, the emphasis of DFR'soperations is very much on management and planning and course modules need to be designed toenhance capability to undertake these tasks. Complementary to this is a need to understandfinancial and accounting procedures, procurement and reporting and monitoring. It is highly likelythat computer technology will be introduced into regional offices, especially in connection withplanning, budgeting, monitoring and accounting over the next few years, and this must beaccompanied by training. Some instruction is needed on the procedures associated with majordonor project cycles. Although headquarters staff might benefit from general management courses,regional staff in management positions particularly need exposure to the subjects outlined above.

5. It is essential that course structure and content is ultimately driven by managers andnot by the permanent training staff it is suggested be employed. This will ensure that courses arenot over-academic and will yield practical results. Project design for the Koforidua center mustinclude a system for monitoring the impact of training activities to ensure that a beneficial impacton efficiency and productivity is achieved.

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B. External Training

6. A target of approximately one-third of professional staff should receive postgraduatetraining. The prospect of such training will also be an important incentive for staff to remain withthe organization. All postgraduate training must be uDw. aken abroad. A potential problem is thatnot all those who go on such training abroad return to Ghana. Opinion within DFR (and experiencewith GHA) is that this has not been a problem for them to date. It is therefore intended under theNFRRMP to set aside funds for some three students from DFR to undertake postgraduate trainingannually, assuming funds will not become available from other sources. The number sent each yearmay have to vary depending on the demanus of the projerts DFR is carrying out. Proposedpostgraduate training shown in Attachment 2 has been adjusted in early years to accommodate suchconsiderations.

7. Technician engineers should continue to be given the opportunity to pursueundergraduate training. The School of Engineering at Kumasi needs to receive some attention if itsstudents are to receive training appropriate for employment in DFR. There are no staff currentlyavailable who specialize in highways or transportation. This situation is claimed to be a function ofpoor salaries at the University and the consequent loss of staff. There are also problems of shortageof teaching space and equipment. A proposed project (costing $3.9 million in 1989 prices) has beenformulated by the School to provide new facilities and to fund ten additional staff. No donor hasyet been found to support the project.

AF4INNovember 1991

(DFRTrain.NFR)

- 102 -

Anex 4 Attachment 1

RKUILIC OF GIMANA

Annual. Schedule of Tn-House Training Pro.rain.

1. Course 8Promotion Course for TechnicaL Assistant 4 weeks Mid February to mid March

2. Course 8Promotion Course for Senior TechnicaL Ass. 4 weeks Mid JuLy to mid August

3. Course CMaintenance Management Course 6 weeks July to mid August

4. Course DIntroduction to Personnel Management 4 weeks February

S. Course EProject Supervision Course 3 days June

o. Course FOffice Management and Administration 4 weeks July

7. Course GStores Management 4 weeks Mid April to mid May

8. Course HAdministrative Seminar 11 days August

9. Course IFirst Grader Operators' Course 4 weeks Mid January to mid February

Second Grader Operators' Course 4 weeks March

11. Course KThird Grader Operators' Course 4 weeks May

12. Course LORT/GHA RTPU Training 8 weeks March to April

13. Course MTraining of Trainers 6 weeks August to mid September

14. Coursg NSemIinar on four years of L.I.P. 1 day March

15. Course 0Contracts Management Seminar I day May

16. Curse _PThird Passcad Training 23 weeks January to mid June

17. Cggrse 0Fourth Pamscad Training 23 weeks July to mid December

No. Courae/Seminer/Conference '92 *93 *94 *95 Duration Tuition Per Air Cost/ TotalFees Diem Fare iNnee Cost

1. ke .n High Engineering ~~~~~~--------------in US$ -------------------1. Nsa ¶'.. Highway Engineering h Sfor veloping CoLmtries 1 1 1 1 12 mos 13,000 11.000 2.300 26,301i 105,200

2. Mtc in Transportation andRoad Engineering inDeveloping Countries - I - 24 mos 12,000 47,753 2.500 62,253 62,253

3. Nsc in TransportEngineering I 24 mos 34,000 11,540 2,800 48,340 48,340

4. Course on Bride Inspectionand Maintenance I - 1 - 24 mks 6,500 6,552 2,800 48,340 48,341

5. Road Nointenanceanagement Course - 1 - 1 12 ks 15,700 5,30 2.300 23,300 46,60D

6. International Course forLabor-Based RoadMaintenance and nagementProgram 6 6 6 6 6 wks 5.000 120 1.150 6,270 150,480

7. Organization 1 1 I 1 4 mks - 1.100 1,900 3,000 12,000

8. Course on Techno-EromamicFeasibility of Road Design,Construction andNaintenance in DevelopingCoumtries 1 1 1 1 4 wks - 500 - S00 2,000

9. Nsw in TransportationPlamiing 1 - - - 24 mos 34.000 11t540 2,800 48U340 48,340

10. Msc in ConstructionNMaagement 1 1 1 1 12 as 13.000 11.000 2.300 26,200 52,600

11. Project Management Program 1 1 1 1 4 mks - 1,100 1.900 3.000 12,000

12. Nsc in Transport Plamingand Engineering I - S - 12 mas 13.000 11,000 2,300 26,300 52.600

13. Rural Transport Investment 1 1 - - 4 wks 5,000 512 1,150 6,662 13.325

14. Post-Graduate Diplomain Human ResourceDevelopment 1 - - - 9 mos 12,300 8,400 2,300 23,030 23.000

15. Training - Its Design r 0and Management 1 - - - 12 wks 15,700 5.300 2,300 23.300 23.300 l D

16. Advanced Logistics 4Management 1 - - - 12 mks 15,700 5.300 2.300 23.300 23.000

r2t

17. Pcst-OrWwte pldCutus In Survaylun I 1 1 1 12 me 17.300 11.000 2,300 25,600 102,400

1J. N In Irwpwrtat1an 1 - - - 12 10,000 7,000 2,800 19,800 19.800

rt

- 105 -


REPUBLIC OF GHANA

National Feeder Roads Rehabilitation and Maintenance Pro'ect

Domestic Construction Industry Capacdtv Assessment and Development Study

Terms of Reference

A. Objectives

1. The objective of the consultant services under these TOR is to make an in-depthassessment of the problems and constraints the domestic construction industry is confrontedwith and to develop a strategy and plan of action needed to be undertaken by GOG, useragencies, donors, commercial banks, contractors etc., to support the development of theindustry within limits of job availability.

2. The objectives of the consultant services under the TOR are to:

(a) assess the present and potential capacity of the "A" and "B" class domesticcontractors in skill and experience of business management; construction workplanning; programming and execution; manpower, equipment and financialcapacities; and technical capability to meet international quality standards;

(b) assess the business environment and policies of government and the privatesector to create an enabling environment for the improvement of a better localconstruction industry;

(c) recommend short and long term measures and actions to be taken by thegovernment, the private sector including commercial banks, external financingagencies and by the industry itself to introduce an enabling environment sothat the available demand for the industry could be fully catered for.

B. Scope of Consultant Services

3. The consultant shall conduct the tasks of the assignment specified herein, to fullyachieve the stated objectives. In conducting the assignment, the consultant shall apply soundtechnical, financial and business practices relevant to attaining the stated objectives. Theconsultant shall obtain required data and information on the industry from MRH, GHA, DFR,DUR, contract supervisory consultants, contractors, relevant financing agencies andcommercial banks.

4. The consultant shall collect and review all studies, reports and financing agencyproject documents related to the support and development as well as performance of theindustry. The consultant shall be solely responsible for the interpretation of all data, studies,reports, reviews, etc., and for the findings and recommendations contained in his final report.

- 106 -


5. MRH, GHA, DFR and DUR will, upon consultant's request, provide neededdocuments, reports and studies relevant to the consultant's assignment and shall assist incoordinating contacts with relevant govermnent agencies, banks, contractors and consultants.

6. The consultant shall carry out, inter alia, the following tasks:

(a) review all reports and records maintained by the contracting advisor engagedunder the IDA financed Project Management Unit (PMU);

(b) obtain from Bank for Housing and Construction (BHC) loan applicationevaluation documents; lists and value of equipment, holdings, tools, and spareparts and operating loans provided to individual contractors; and loanrepayment records. The consultant shall assess the capacity and creditworthiness of the individual contractors; assess reasonableness of the interestrates charged by BHC including financial risks borne by contractors and theeffect of devaluation of the cedi;

(c) obtain from commercial banks contractors' loan and loan repayment status andassess the soundness of the loan interest rates charged by the commercialbanks;

(d) obtain from GHA, DFR, DUR, and other relevant agencies contractsundertaken by the "A" and "B" class contractors over the past five yearsincluding details of performance of the contractors both in quality and contractcompletion time and assess the performance of the contractors over the pastfive years;

(e) produce representative lists for Al to A4 and Bi to B4 contractors based ondata obtained under (d) above and conduct a survey leading to a contractorbusiness performance review using a well designed survey questionnaire;

(f) obtain contractor performance assessment from user agencies (GHA, DFR,DUR etc.) using a questionnaire to obtain realistic performance rating;

(g) obtain contractor performance assessment from contract supervisingconsultants using a questionnaire to obtain realistic performance rating;

(h) review and assess policies and procedures of lending provisions of public andprivate banks to the construction industry;

(i) carry out a survey of training provisions which have been made available tothe construction industry by GHA, DFR, DUR and other institutions such astechnical training schools, universities, and business management traininginstitutions;

(j) identify main problems and constraints affecting the development andperformance of the local construction industry based on information and

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performance evaluations undertaken from (a) to (i) above, clearly definingreasons, causes and effects of the identified problems and constraints;

(k) identify implementable policy and procedural reforms to be undertaken byGOG, the private sector and public and commercial banks to support thedevelopment of the local construction industry;

(I) assess and determine roadwork availability until the year 2000 using realisticwork programs of GHA, DFR, DUR and other agencies;

(m) determine the local construction industry capacity needed to meet theroa.dwork availability determined under O) above;

(n) recommend measures and actions to be taken by GOG and client agencies tosupport the local construction industry to carry out the workload determinedunder Q) above in terms of training assistance; applicable bidding documents;timely payment of monthly certificates; mobilization advances etc.;

(o) recommend measures to be taken in providing provisions to meet contractors'needs for foreign exchange for purchase of equipment, spare parts, materials& supplies; and

(p) carry out an assessment of the role and contribution of the local constructionindustry to the macro-economic performance of the country including possiblenegative impacts on the economic development of the country in the event thatthe industry's capacity for development does not materialize.

C. Staff Composition and Duration of Assignment

7. The consultant services under these TOR are estimated to require about 18 man-months. Proposed composition and duration of assigmnents of consultant's key personnel isgiven below. However, the consultant is free to propose his own staff composition andduration of assignments to produce sound recommendations meeting the stated objectives.

(a) Construction Industry Development Specialist with Civil Engineering degreeand a minimum experience of twenty (20) years in civil engineering work ofwhich a minimum of about ten (10) years experience have been in privateconstruction industry; for about eight (9) months.

(b) Financial Specialist with a degree in Accounting/Finance with a minimumexperience of fifteen (15) years of which at least 8 years were spent workingas Finance Specialist in the private construction industry; for about five (6)months; and

(c) Macro-Economic Development Planner with a degree in Economics and anexperience of at least fifteen (15) years of which at least seven (7) years

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experience have been in national macro-economic planning; for about 3months.

D. Timing of Reporting Requirements

8. The consultant shall prepare and submit the following reports within the submissiontime specified for each:

(a) ten (10) copies of Inception Report within three (3) weeks of start ofassignment in Ghana. Government and the Bank will communicate theircomments on the Inception Report within fifteen (15) days of receipt of theInception Report;

(b) ten (10) copies of Interim Report covering Consultant's findings of problemsand constraints of the local construction industry and plan of action incompleting the draft final report within five (5) months of start of assignmentin Ghana. Government and the Bank will communicate their comments to theConsultant within fifteen (15) days of receipt of the Draft Interim Report;

(c) ten (10) copies of Draft Final Report within seven months of start ofassignment in Ghana. Government and Bank will communicate to theconsultant their comments within fifteen (15) days of receipt of the Draft FinalReport; and

(d) thirty (30) copies of Final Report within eight (8) months of start ofassignment in Ghana.

AP4INNovember 1991

(ConatTOR.NPR)

- 109 -


REPUBLIC OF GHANA


Rural Mobility and Environment

A. Bicycle Trailers and Single-Wheel Farm Vehicles

1. The Bank has already provided funds to improve rural mobility under TRP-1and TRP-2. The Northern Region Pilot Project under TRP-2 is concerned with thedemonstration and introduction of the following two intermediate means of transport (IMT)which are new to Ghana:

a single-wheel, hand propelled small farm vehicle (SFV) for use by ruralhouseholds as a more efficient alternative to head-loading in order to meetlocal transport needs, particularly between the farm and village; and

a two-wheel cycle trailer to increase the load carrying capacity of bicycles, foruse by rural households and for goods delivery and collection in small towns.

2. The pilot project focuses primarily on introducing bicycle trailers and farmvehicles. The former carry about 120 kg and can be hooked to a bicycle or pushed andpulled separately. The latter has one wheel at the center, so that the weight is on the wheeland not the arms which push it, and are suitable as carts on bush tracks. So far about 600vehicle units were manufactured and distributed to user groups in villages, mainly women.The design has been modified based on feed back of their use. Rural women were the mainbeneficiaries, since head-porterage is generally done by them. Reception of these vehiclesmainly the trailers, has been enthusiastic.

3. The bicycle-trailers, and single-wheel farm vehicles are being tested under apilot program carried out in the northern region where bicycles are popular, but not manyown them because the villagers lack the funds to invest. The newly introduced bicycle-trailers, and single-wheel farm vehicles are now readily accepted as a substitute for head-porterage. Surveys show that women would like to own them but cannot raise the funds tobuy them. An NGO recently bought some bicycles for distribution to women's groups insome villages, and women have avidly taken to using the bicycles and demonstration trailers.There has been no cultural resistance to the change.

4. The objective under the proposed NFRRMP is to provide seed money (frombilateral financing) to reduce the problem of affordability. DFR will, through NGOs andcooperatives, operate and monitor the use of the seed money as a revolving fund for purchaseof bicycles and material for manufacturing single and two-wheeled trailers for sale on creditbasis to rural households in regions where the motor vehicles are usable and accepted by thehouseholds. The initial proposal is to engage presently available five private blacksmiths whopreviously were involved in assembling bicycles purchased by DFR and in manufacturing thesingle and two-wheel trailers for which materials were purchased and provided by DFR.About 40 sets of cycles, trailers and farm vehicles will be supplied in two tranches to each of100 NGOs

- 110 -


and cooperatives for sale on credit basis to households in the Brong-Ahafo and NorthernRegions at a total cost of US$ 1.5 million. Potential blacksmiths will be entrusted to stockneeded spare parts while the repair and maintenance of the non-motor vehicles will be doneby rural households.

5. The introduction of the non-motor vehicles will be the appropriate IMT fromwhich rural communities will benefit by reducing considerable amounts of time which ruralcommunity now spend on head-porterage for the transport of farm products from farms tohouseholds and/or to nearby market places. This will allow farmers to allocate more time forfarming which will in turn increase production. Moreover, the use of the non-motor vehicleswill reduce the physical strain and health problems arising from head-porterage.

B. Planting of Fruit Trees

6. The project will also provide funds for planting fruit trees along feeder roadswhich will be rehabilitated through labor-based contractors. The fruit trees will be planted atan appropriate distance from the road centerline thus avoiding the need to cut the trees as andwhen the roads are widened. The fruit trees will have a lasting benefit by providingfood/cash supplements and environmental improvements. NGOs and cooperatives will beentrusted with the nursing, planting and after care of the fruit trees at about US$2.0 fee pertree for the operation and management of this sub-component.

C. Beneficiaries

7. The rural community as a whole will be the beneficiary of the rural mobilityand environment component under the NFRRMP and the TRP projects. Women who usuallydo head-porterage of farm products will significantly benefit from the non-motor vehicles aswell as by earning cash income due to the opening of rural access roads. The component willalso have a major contribution in creating awareness to be technologically creative to tackleconstraints in the effort to generate income and improving their living standard. Thecomponent will also create jobs for private entrepreneurs such as the blacksmiths who will beinvolved in the assembly of the bicycles; the manufacturing the trailers; and the supply ofspare parts.

AF4INNovember 1991

(RuMobEnv.NFR)

- 111 -


REPUBLIC OF GHANA


Institutional Arrangements for District Routine Maintenance

A. Introduction

1. Districts have been proposed by tlhe Government as the agency that should beresponsible, with DFR assistance, for routine feeder road maintenance. This is primarily to insurethat NFRRMP's activities will meet the letter and spirit of GOG's decentralization policy. It is alsobased on the belief that districts will tend to perform better than DFR could in reflecting localknowledge of road conditions and local preferences re maintenance priorities in their maintenancedecision-making.

2. All forms of "force account" routine maintenance have been eliminated fromconsideration because experience with force account routine maintenance has been almost universallydisappointing throughout the developing world. Force account routine maintenance was discontinuedby Ghana Highways Authority because of unsatisfactory results. Given the relatively low publicsector wages in Ghana, further experimentation seems pointless.

3. Among the alternatives that remain, four appear to have some potential in ruralGhana: (1) combined rehabilitation and maintenance contracts, (2) single-man contractors, (3) labor-based contractors and (4) contracting with intermediary organizations.

B. Combined Rehabilitation and Maintenance Contracts

4. This phrase refers to a situation in which contractors might bid simultaneously on acontract from DFR to rehabilitate a road and on a contract from a district to maintain that same roadfor -n extended period (e.g. 3 years) following rehabilitation. The bids must be evaluated on thebasis of the best "package" for rehabilitation and maintenance. All bidders must bid on both contractsand accept both if they win. Combining rehabilitation and maintenance responsibilities offers onevery significant advantage. It gives the contractor added incentive to perform rehabilitation workwell, because shoddy rehabilitation work will increase his/her maintenance costs.

5. In practice, there are likely to be a number of difficulties in combining contracts forrehabilitation and maintenance. First, DFR is likely to prefer the contractor with the best or lowestrehabilitation bid, while the district might prefer the contractor with the best or lowest maintenancebid. Procedures for resolving this situation, should it arise, would have to be worked out. Secondly,contractors are unlikely to accept a fixed price, long term maintenance contract if they believe thatabuse of the road (e.g. frequent overloaded trucks) might result in significant damage to the road andan increase in their maintenance costs. It is likely that the contractor would want guarantees that usewould be regulated, either by himself or by the district. Third, it may be that contractors would be

- 112 -


uninterested in making a long term commitment to routine maintenance, which is "small potatoes"compared to other rehabilitation contracts. This difficulty might be lessened by adding to the scopeof the maintenance side of the contract by including routine, recurrent and even periodic maintenance.

C. Single-man Contractors

6. The single-man contractor system of routine maintenance involves a contract betweenan individual and the district government, in which the individual agrees to perform all routinemaintenance activities to specified standards for a predetermined payment on a fixed length of roadusing hand tools provided by the government. The single-man contractor (also known as the "length-man") system is widely used in developing countries and has produced excellent results when used inrelatively well populated areas in which each single-man lives along side or close to the stretch ofroad s/he maintains. Living in close proximity to the road means that the single-man has easy accessto the work and can devote "spare" moments to the work when that is an advantage. Close proximityalso strengthens the tendency for single-men to be "known by the quality of their work." Superiorperformance may bring a small measure of status and recognition from local people, while it is easyto identify the "culprit" if performance is poor. Single-man contractors are normally local farmers orlaborers who are underemployed. Their work as "single-men" varies seasonally, but usually iscalculated to average about twelve working days per month in order to leave time for their otherwork.

7. One of the keys to a successful single-man system is the quality of the overseers (inthis case probably DFR's road foremen, posted to the districts involved), who must inspect the roadsat regular (initially frequent) intervals, issue and account for tools, keep pay records, and pay thesingle-man contractors. Single-man contractor systems require timely payment of the contractors andclose monitoring of results. Irregular payment quickly leads to deterioration in the quality of work,just as regular payment for shoddy work also leads to rapid deterioration. Payment must becontingent on satisfactory performance and only satisfactory performance. Overseers must be subjectto supervision (in this case probably the DFR Area Engineer and a responsible official from thedistrict government). Supervisors must inspect the roads at regular intervals (perhaps once a month),spot check wage payments and arbitrate any disputes which may have occurred between overseers andcontractors.

8. NFRRMP should not simply adopt the GHA single-man system without firstconsidering its suitability for feeder roads. Descriptions of GHA's system seem to suggest that it maybe "force account conducted by another means." Also, GHA's single-men are providing routinemaintenance for mostly asphalt surfaced roads, while NFRRMP contemplates the maintenance ofgravel surfaced roads. Finally, a quick, "roadside inspection" of GHA's single-man system suggeststhat its results are far from satisfactory. One wonders whether there is actual positive impact on theuseful life of the road from the "maintenance" performed.

D. Labor-Intensive Contractors

9. The labor-based contractor system of routine maintenance would involve a contractbetween the district government and a labor based contractor for performance of all routinemaintenance activities over a fixed length of road for a fixed time period. Discussion of a labor

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based contractor system has to be a bit more hypothetical than the discussion of single-man systems,because there isn't nearly as much experience with maintenance by contractors (particularly laborbased contractors) as there is with single-man (or length-man) systems in developing countries.

10. Use of labor-based contractors for maintenance would have two significantadvantages: (1) the labor based contractor could provide a flexible and diversified maintenance systemand (2) the labor based contractor has an incentive to innovate more efficient and effective ways oforganizing the work. The labor based contractor owns some equipment and has certain technicalknowledge which might be useful in insuring quality maintenance. The labor based contractor wouldbe free to deploy and redeploy laborers, to choose to use his equipment or hire more laborers and toperform maintenance works during those periods in which it is economically and technically mostfeasible rather than having the timing of maintenance activities driven by agricultural seasons. If hefelt that it would be efficient, a labor based contractor might simply set up his/her own single-mansystem of maintenance. In this case, he would assume the role of the overseer discussed withreference to the single-man system. As an owner, the labor based contractor has the right toappropriate all residual funds as profit. This right creates a powerful a priori incentive for the laborbased contractor to make rational use of resources and to innovate more efficient ways of organizingthe work.

11. The biggest drawback to a labor based contractor system of routine maintenance inGhana may be the small number of such contractors. In theory, some of the savings which acontractor may realize through innovation will be captured by the district when the maintenancecontract is re-bid. However, this theoretical possibility depends on the existence of genuinecompetition, which is very difficult to insure in the absence of a large number of potential bidders.Since there are only a small number of such contractors in all of Ghana, it would appear unlikely thatseveral of them would be available to bid in a particular district. DFR should do all that it can toincrease the number of labor based contractors. Further easing of the constraint caused by therelatively small number of labor based contractors could be sought by using the "pool" of labor basedcontractors that have been trained, but not yet equipped. There are currently twenty-five equippedcontractors of this type. NFRRMP and the districts may wish to consider making all contractors,equipment based and labor based, eligible to bid on maintenance contracts.

12. DFR and NFRRMP may wish to encourage the use of labor based contractors forroutine maintenance simply to increase the opportunities available to labor based contractors. Itwould add some diversity to the work opportunities that labor based contractors have and it mighthelp smooth out seasonal fluctuations in their work load and cash flow.

13. If one can assume genuine competitive bidding, the labor based contractor systemmight be the simplest system for districts and DFR to administer. The burdens of organization of theactual maintenance work, daily supervision (if that is required), payment to workers, provision oftools and the accounting that must accompany these activities are accepted by the contractor.

E. Contracting with Intermediary Organizations

14. The term "intermediary organizations" is very nebulous. Its use in this context is forlack of a better term. The term is intended to emphasize that this organization may have been formed

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to represent and promote the interests of its members. Frequently, the organization has no "natural"or obvious connection to feeder roads. Poverty oriented non-governmental organizations (NGOs) arethe most conmmon developing country example of intermediary organizations that sometimes contractfor road maintenance. A second "class" of intermediary organizations might be broadly labeled as"user groups," where the term denotes groups whose members have an identifiable economic interestin the condition of the road(s) in question. For example, such groups might consist of the owners ofcommercial transport services or the producers of products whose value is highly sensitive totransport costs or timeliness. The basic distinction between the two types of intermediary groups isthe presence or absence of an economic interest in the road.

15. There is a way in which NGOs and user groups may be alike. Both kinds ofintermediary groups may be and frequently are organized as "nonprofits." This does not mean thatthe group cannot profit from its activities, but it does mean that profits are not directly andautomatically appropriable by individuals, whether they be group members or employees. Thiscontrasts with the situation in a for profit organization, e.g. a labor based contractor, in which theowner can be very certain in advance of undertaking the work that s/he will immediately andautomatically benefit from efficient work. The implication is that members and employees of non-profits are likely to have a weaker motivation to innovate more efficient ways of working than ownersof for profit firms.

16. Poverty oriented NGOs can be organized as for profit firms, but this type oforganization is relatively rare, especially in road maintenance --- for apparently good reason if onelooks at the incentives involved. Poor persons are relatively risk averse. They will usually prefer thesecurity and frequent, regular payment of a wage over dhe uncertainty and infrequent payment of aprofit. Theoretically, poverty oriented NGOs might orgarnize as for profit firms, with all employeesreceiving a more or less certain wage and a less certain profit. However, the use of labor intensivetechnologies and the costs of contracting decrease the likelihood that profits will serve as a significantmotivator of individual workers in this context. Labor intens.ve technologies and contracting coststend to increase the number of workers involved per contract. 'Therefore, the individual worker has avery weak incentive to work hard or efficiently; since any profits due to these special efforts will beshared with a very large number of other workers. Conversely. s/ht may have an incentive to shirkbecause large groups make shirking more difficult to detect and the effect of shirking on his/her totalincome will be negligible.

17. Relative to poverty oriented NGOs, user groups may have a number of advantages inundertaking feeder road maintenance. These advantages arise out of their relatively explicit economicinterest in roads. Because user groups are organized around these interests, they tend to be moreaware of their interests and more able to calculate the extent of their interests. Improving roadmaintenance may or may not be a part of the user group's agenda. This depends, in part, on howopen to influence responsible officials have been in the past.

18. Users groups are the only potential maintainers of roads who might contribute to thecosts of maintenance. Where the benefits of maintenance are large relative to the costs, users mayfund and organize maintenance with little reference to the responsible government agency. There areinstances of sustained maintenance efforts of this type in developing countries. One even senses a bitof this in Ghana with respect to log haulers and bus operators. District officials report that they are

115 -

An-nex 4-i10Page 5 of 6

frequently approached by individual users who are willing to contribute to maintenance of a particularroad that they use. Granted, these users are not seeking routine maintenance. They rarely approachofficials until the road is badly deteriorated.

19. Members of road related users groups tend to be in a position to accept more risk thanmembers of poverty oriented NGOs. They could accept the risk of organizing a for profit group, butthey have no specific need for profits or wages from the users group. They have other sources ofincome. Because they are not seeking jobs, they may be more objective in choosing between laborintensive and capital intensive technologies for maintenance.

20. User group members who, based on their economic interest in road services, assumepart or all of the costs of maintenance have a set of incentives that are very different than members ofa poverty oriented NGO. Whereas NGO members want to engage in production of road maintenance,that is they want to clean ditches, cut the grass, etc; user group members have an incentive to have asay in the decision making about how much maintenance should be done, how it should be organized,who should do it, etc. They would do this in order to protect their investment and to control thecosts to themselves. These decision making activities are referred to by economists as provisionactivities. The distinction is significant because normally one thinks of governments as the providersof public goods such as roads.

F. Summary

21. In summary, user groups have superior incentives to maintain particular feeder roadsin which they have an economic interest. They may actually contribute to the costs of maintenance,but they are likely to want, in retum, to influence decision making about maintenance.

22. Furtl.er investigation of existing and potential user groups should be undertaken. Thefollowing potential and actual user groups were identified:

(a) The various road transport unions, including Ghana Private Road Transport Union(GPRTU), Ghana Cooperative Transport Union (GCTU) and Ghana ProgressiveTransport Union (GPTU). GPRTU is by far the largest in terms of membership andgeographic coverage. GPRTU collects and remits to central government certainrevenues (taxes and/or fees?) at transport terminals. It is believed that the other twoassociations also do this at the terminals that they "control."

(b) Local and/or national associations of market women. Whether such associations existis not known.

(c) Associations of producers and/or transporters of products whose value is highlysensitive to transport costs, quality or timeliness. Examples of such groups mightinclude producers and/or transporters of logs, fresh seafood, pineapples, freshtomatoes, etc. Whether such associations exist is not known.

(d) Log hauling is an important economic activity with substantial impact on the conditionof feeder roads in some Digricts. Log haulers are involved in both the "demand" and

- 116 -

Annex 4-1OPage 6 of 6

"supply" sides of feeder road maintenance. They contribute to demand for roadmaintenance because they are among the heaviest vehicles to use the road and heavyvehicles tend to do more damage to the road surface per trip than light vehicles.They contribute to the supply of road maintenance by providing part of the fundingfor the limited, sporadic "maintenance" which currently occurs.

23. GPRTU and its rivals should also be investigated further. One importantcharacteristic to be determined is the degree to which local "chapters" have autonomy to undertakelocally initiated and controlled activities.

24. Tlere may be other types of intermediary organizations potentially interested inroutine feeder road maintenance. For example, the traditional structures of Ghanaian societv, tribes,may be worth investigating. It is difficult in this brief report to cover the topic exhaustively.

25. The preceding sections serve as an example of the kind of analysis that might beapplied to additional intermediary groups, to contractors, to the district governments and to DFRitself during the early years of NFRRMP. There will be a need for much analysis, experimentationand implementation support if the project is to succeed in achieving its objective of sustained feederroad maintenance.

APUNNovember 1991

(RoutMain.NFR)

- l117 -

Annlex 4-11Page 1 of 3

REPUBLIC OF GH? NA

NATIONAL FEEDER ROAD$ REHABILITATION AND MAINTENANCE PROJECT

District lResource Mobilization Potential

1. District Assemblies obtain revenue from a variety of soucces including, but not limitedto

(a) Rate collections, based on the value of property and possessions;

(b) "Special rates" which can be collected from persons over 18, resident district-wide orin differentiated sub-districts for specific purposes;

(c) Fees on various trading, marketing and productive enterprises;

(d) Licenses for various business activities such as hawking, hotels, restaurants, liquorsales, taxi cabs and lorry parks; and

(e) Miscellaneous collections such as court fees, fines and town hall receipts.

2. The major source of locally generated revenues is rates collected on property andpossessions. District Assemblies set property rates and fees within national guidelines. Fees, licensesand miscellaneous local collections account for very little and are directly dependant on the size andeconomic condition of the district. Income taxes are neither collected by, nor allocated to, localgovernments.

3. There is wide variation among districts in revenue generating capacity. Districts inwhich major economic activities are located, e.g. mines or timber harvesting operations, generatesignificantly more income from business registration fees than do districts in poorer regions. Districtsin the northern areas of Ghana arc especially poor.

4. Some local government revenues defined in PNDC Law 207 are collected by thenational government's Internal Revenue Service (IRS) because taxation and administration ofcollection are more efficiently organized at the national level. These are known as "ceded" funds;since IRS turns revenues over to the Ministry of Local Government, which then disburses funds todistricts on the basis of a revenue sharing formula in order to balance disparities between districts.

5. The revenue sharing formula employs fairly coarse indicators which result indisbursements based on:

- A be amount provided to all districts;

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- A population factor including relative numbers and density; and

- A dQvelopment status factor based on rough indices of poverty levels, relative accessto development resources, level of infrastructure development, etc.

6. A rough estimate of funds collected from and redistributed to all 110 districts underthe revenue sharing system is:

1989 C 230 million (US$658,000)Note: several estimates were given for this year, the highest being C300 million. The estimate given by MLG headquarters has been usedhere.

1990 C 260 million (US$743,000)

1991 C 1 billion (US$2,858,000) The increase over 1989 and 1990 figuresis due to the addition of billboard advertising tax and transport ownerstax to the ceded \inds pool.

The dramatic increase in 1991 ceded revenues is a significant indicator of the central govermnent'scommitment to increasing district revenues.

7. Additional evidence of the natior al government's commit-ment to increasing localgovernment revenues is provided by the following facts:

- A national effort to improve collecti ' of local government revenues has beenorganized by the National Mobilization Program in which local branches of theCommittee for the Defense of the Revolution are organizing village trade associations(e.g. tailors, hair dressers, etc.). The local heads of these associations are collectingthe relevant taxes, fees and license charges from the membership and being paid acommission to do so.

As of 1991, agencies of the national government are required to pay property rates tothe districts in which properties are located. Previously, government agencies wereexempt.

- The intention to funnel most of the resources presently controlled by the decentralizeddepartments to the districts remains intact.

8. Some district governments have set up local enterprises (e.g. bakeries, concrete blockmanufacturing and others) to be operated by the district government on a "for profit" basis. Thisshould be discouraged due to the consistently poor performance of such enterprises in the past and thechilling effect of such enterprises on private entrepreneurs.

9. Three studies concerning district finances have recently been initiated. Topics of the

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studies are (1) revenue sharing, specifically including the possibility of revising the present formulafor calculating district shares; (2) fiscal decentralization, focusing on acceptable standards foraccounting and auditing at the district level; and (3) the property rate (tax) structure, focusing oninconsistencies between Legislative Instrument 1049 and Basic Law 42.

AF4INNovember 1991

(ReMobPot.NFR)

REPUBLIC OF BHANA

National Feeder Roads Rehabilitation and Maintenance Project

CHECK FORPULAS Summary Project Costs

Local Taxes Foreign Total Local Taxes Foreign Total

A.REHABILITATION AND MAINTENANCE PROGRAM (US$ million) (CedS mi?tion)

1. Rehabilitation by Contract 21.95 2.98 17.58 42.50 8,231 1,116 6,591 15,9382. Regravelling by Contract 9.83 1.50 10.05 21.38 3,687 561 3,767 8,0163. Spot Improvement/Culverts by Contract 3.60 0.35 1.05 5.00 1,350 131 394 1,8754. Maintenance & Uorkshop Equip., Tools & Spares 0.30 0.20 3.54 4.04 112 76 1,327 1,5155. Design and Supervision 1.27 0.08 1.36 2.71 478 30 508 1,017

Subtotal 36.96 5.10 33.57 75.63 13,858 1,914 12,587 28,360

S. INSTITUTIONAL SUPPORT PROGRAM

1. Management Line Positions 0.25 0.02 0.98 1.24 93 6 366 4652. Technical Line Positions 0.25 0.00 1.43 1.68 95 0 536 6303. United Nations Volunteers (UNV) Support 0.08 0.01 0.09 0.18 32 2 34 684. Studies 0.25 0.00 0.61 0.86 94 1 228 3245. Training 0.30 0.03 0.97 1.29 113 10 362 4856. Local Construction Industry Support 0.50 0.23 4.07 4.79 186 84 1,525 1,7967. Rural Mobility and Environment 0.77 0.10 1.11 1.98 289 37 417 7438. DFR Decentralization Support 0.76 0.05 0.56 1.36 286 17 209 512

Subtotal 3.16 0.42 9.80 13.39 1,187 157 3,677 5,021

Total Project Base Cost 40.12 5.52 43.37 89.02 15,045 2,072 16,264 33,381Physical Contingencies 3.79 0.52 3.46 7.77 1,421 196 1,297 2,913Price Contingencies 5.08 0.70 3.47 9.25 3,831 525 3,211 7,567

Total Project Cost 48.99 6.74 50.30 106.03 20,297 2,793 20,771 43,861

0I

1b ~ik R@8MC OF GAN

TOTAL. YEAR 2: 1A14-DEC 1992 YEAR 2: JAN-DEC 1993 YEAR 3: JAN-DBt 1994 YEAR 4: )AN-DEC 29M YEARS5: JAN-DEC 199

(38FOM109 LOC TAX FOR TOT LOC TAX FOR TOT LJOC TAX FOR TO`r LOC TAX FOR TOTl LOC TAX FOR TOr LJOC TAX FOR TOTr

A. FEEER ROADS REIInJAULTA1 N* AND MADIT8ANCE PROGRAM

.. RibmM.48. by Cusada. Cqvku2&ow Caiaot 4I.RXIm k4,9 2,2 1 5,27 32.38 2,24 341 2,291 4,87 3.738 30 3.819 8,123 4.483 683 4,583 9.75D 3.738 569 3,829 8.125 748 114 764 2,623b. Lmbhcw~bamloCgs4tAO0=b* 7,96 780 2,323 A0.X) 2.40 203 343 2,38 1.730 17$ 373 2,MW 2.IOD 210 69 3.OM3 1.738 175 575 2,30 350 33 115 596RSaOa Rebb Udw a by Caom 21,938 2,97 I7?37 42.38 3.293 446 2,636 6.37$ 3.438 744 4.394 10,625 6.583 893 S,273 22,750 5,488 744 4394 10,825 1.098 14 879 2,125

IL C92aa2-bcmEw CbduaabE2MM3 9,433 1.496 10,046 21,373 983 153 2003 ,238 1,367 299 2,00 4,27 2,930 449 3,024 6,413 2,950 449 3,014 0,415 083 238 2,003 2,38Sub 28Rq tCuin b o8a 9,833 1.496 10.046 21.375 33 238 1.96 2.23 1,967 299 2.009 4.275 2.938 449 3.014 6,413 2,93 449 3,014 6.413 933 238 2.965 2,138

3. So bopmoxam0hiona byCo *b&. .Lhar4~~molCaamast7Ub0 3,30 330 2,050 3.0010 36D 35 203 SOD 720 38 210 2.00W 2,08 205 32$ 2.30 2,0801 203 315 1.500 396 35 205 SODS-W 1S i.*wA3dvAW. tCcd* 3,810 350 1,050 SAW0 36D 33 203 930 72D 38 210 2.0W0 2.080 10$ 32$ 2." 2,08 205 325 SAW0 3D 35 S0$ SW0-

4. u.M mm Wa .p Equip, Taah & Spam.s, Rcuaum akommSOO= 43 43 820 gm 0 0 0 0 23 23 405 438 23 23 405 438 0 0 0 0 0 0 0 0b. RVIW MUL 59A AW WOWYCVO3S s0 30 2.000 0 0 0 0 23 23 430 30 23 23 450 5S0 0 0 0 0 0 0 0 0c. R m c2m 2s03nmm Humbools los 2I LU3D 3 26 4 43 15 26 4 43 75 26 4 43 75 26 4 45 73 0 0 0 0&.Wc.bepEquigamas Toob,Sp- P. 30 30 340 600 0 0 a 0 Is I1$ 238 XC is 1$ 238 3W 0 0 0 0 0 0 0 0*. VoMbu frDER a6 A 720 80 20 20 360 410 20 2D 360 400 0 0 0 0 0 0 0 0 0 0 0 0t. M3bil As" Is Is 238 XC 0 0 0 0 a 8 235 238 8 8 235 238 0 0 0 0 0 0 0 0g. OS3m-Eqdpl a22 4 56 38 0 0 0 0 $ 2 28 33 5 2 38 35 0 a 0 0 0 0 0 0ILTk ini; qu2pmw 2AWd 4 4 63 38 0 0 0 0 2 2 32 35 2 2 32 33 0 0 0 0 0 0 0 08.hoa2E.AwkTcoa A Spom. 299 292 3.39 4,W 46 24 405 473 123 97 1,725 2.943 103 77 2.363 t.543 26 4 43 73 0 0 0 0

1. R.gdamisim

S.re o_(tw3 lm1 593 3X 6312 ,262 297 19 326 631 297 29 316 6312 0 0 0 0 0 0 0 0 0 0 0b. Wmb SWM.vlinCWf*A230mhz0 682 43 723 1.449 102 7 109 217 178 22 l82 362 238 22 182 362 238 it l82 362 68 4 72 243SdW*W 3mlgmad Suinvislo 1.274 8t 2.33 2,711 399 25 424 84 467 30 497 993 238 22 182 362 238 22 282 362 St 4 72 243

BASE Ir ROADS RENA MAlNT. MROO. COSl 36,956 3,035 33,36 73,626 .082 68 4,57 10,336 8,764 I," 8,83 28,838 20,88 1,34 10.147 22,538 9.714 1.312 7.949 28,975 2,509 338 2,062 4,907PWYSCAL CONTD e bCIES 3,#1D 5S2 3 :22i 7.292 468 63 423 949 830 122 834 2,783 1,07 2152 997 2,221 954 13 577 1.861 244 33 199 476PRICTCONTIN4GENIES 4,728 652 2,875 8,242 347 47 140 534 894 227 433 1,434 1,438 203 8m 2,748 I.S 24 2,039 2.I 9 434 61 392 9072TOTAL FSEDER ROADS RDL & MAWN. PROG. COSr 43,242 6,2$9 39.6S9 92.2160 3,896 79 3,230 11,819 10,488 1.488 2%0,20 22,07 123.338 I.89 21191 27,269 22,25 1,637 9.195 23.383 3.1207 432 2.62 6,291

X b~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~O

0214t WTS

1. awfi3ITWALsu3JwO FtOGRAM

I. -mp UN 3 adC C M04k=P SSpd Kb 0i NW g 0 5t6 639 9 0 St do 23 0 1 0 ISO 23 0 I3 330 23 0 133 133 14 0 7? g0

bUO3Ast. I T 3pc.(3O1- .0 50 S 0 331 330 0 0 0 0 20 0 132 132 2) 0 132 132 to a 56 66 0 0 0 0O. .*Mbh433I (hW56mS o3 39 6 66 It0 4 I 7 II 30t I 3 7 20 30 I 1 7 20 30 I 37 20 6 3 t0 3?&06wh wjmi by M au 20 30 In 239 I 3 12 20 is 3 20 so Is 3 20 SD i3 3 20 so It 2 33 20

MAWI M LM U PO 268 If 977 3,20 20 2 30 93 0p 4 20 360 0 4 236 360 60 4 MD0 294 30 2 30 3.37

LT*dw opa

L M.MIM" pC§WM b NN03M 0 573 672 0 0 0 a so 0 20 336 SD 0 236 336 0 0 0 0 0 0 a aun iat b cm 30 0 206 336 0 0 0 0 20 0 143 363 25 0 343 163 0 o a o 0 0 0 aC. Ro 1bft 3 pewbp4C wh S 0 216 336 0 0 0 0 20 0 143 163 20 0 l4a 163 0 0 a a 0 0 0 0

&dN"4MAw1yUMW in 0 286 336 a 0 0 0 20 0 143 log 20 0 I43 M6 0 0 0 a a a 0 0SAWAITS"WLk* PhOW252 03,.433,1630 0 0 0 0 126 0 734 30 326 0 734 40 0 0 0 0 0 0 0 0

mR.M &Ih 4u" me5I 5 go I 0 0 0 0 0 42 3 45 90 42 3 45 so 0 0 0 0 0 0 a 0aftu..Vd(Uism"Ma 9 u Is 5 go lo0 0 0 0 0 42 3 45 go 42 3 45 90 0 0 0 a a 0 0 0

an. &Uhad a o3wtt11 n)o M" 72 0 216 263 72 0 216 3M 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 akFsmos Raw an M0 m.giinmQ0s 320 0 30 410 0 0 0 0 320 0 360 410 0 0 0 0 0 0 0 0 0 0 0 0

c- sodeommmbhm- sm mob5 3 33 95 9 0 5 14 I5 I a 24 35 I a 24 i5 I 3 24 6 0 3 30SOWdShdbo ~~~~201 3 63 3so 33 0 233 302 135 3 36B 304 35 I 3 24 3s I a 24 4 0 3 to

S.Tubb

" mnamodTabbs 1~~9 13 63 60 0 0 0 0 6 4 132 392 6 4 332 192 6 4 132 192 2 3 63 64

b. t Lm em 4wre"Tubbe3 236d Z 14 42 282 333 7 21 343 113 7 21 343 0 0 0 0 0 0 0 0 0 0 0 0

e..lhTm Tuhbs T.A, CH5 6 0 336 372 14 0 79 93 14 0 79 93 14 0 19 93 34 0 79 93 0 0 0 0

MWATob 23m 27 967 ,294 I2V 7 360 234 133 II1 203 426 20 4 261 335 20 4 261 285 2 3 63 64I

6 d mwd ,4 W I.-a.Lmdam.'- Awme(I33 72 0 216 38 12 0 216 381 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 a N)ik. m &okCmt.hhsViqiini 420 25 so 300 0 0 0 0 339 3 IS 330 120 3 35 33D 138 3 Is 330 43 3 5 so0N. WI Ldin.U.iCul dmm39Sipt 0 20D 3.101 4,6001 0 0 0 0 0 MD 3,3601 4,00 0 0 0 0 0 0 0 a 0 0 0 0 MWA Od AdCInMCdl3rfSqIp. 49? 225 4,06 4.73 72 0 216 38 I3 MB 3,335 4.350 320 3 I5 130 339 a I5 330 43 3 S 91

7. Ro uf =I Emk, .a. bm=Wbu M u (opmn 310 74 1.036 1.480 56 II1 135 222 93 39 259 320 III 22 331 444 93 39 259 320 39 4 52 74

kTmrl d 233 33 20 23 32 2 4 33 53 3 6 63 64 4 3 75 53 3 6 63 33 I 3 33

C. S NMiOadWSewmapo 3n 33 30 250 28 2 3 38 47 3 3 3 651 16 4 is 75 47 3 3 3 63 9 I 3 33

SAWARMd'sI-) u73 99 3,333 3.910) 116 IS 3167 297 393 20 213 495 231 30 333 594 393 20 213 493 39 5 56 99

L. MR DmMvd Vwe.liilmaAmil(2=f) 29 0 363 192 7 0 43 43 7 0 41 43 7 0 41 43 7 0 43 43 0 0 0 akDwIaff09s2m4n)2" 333 20 260 672 96 5 67 l63 96 5 67 363 96 S 67 363 96 5 67 163 0 0 0 0

&t. uIinWmtuIDW m ad k*FtrA 350 25 125 SW) a 6 31 120 so 6 33 320 a3 6 31 320 63 6 31 325 0 0 0 0

a0FfDM mmab&Wm iyw3 743 45 57 3.364 190 I33 139 341 190 33 3 39 341 390 33 3 39 341 390 331 139 341 0 0 0 0

LMEgI3ummITMIAL31SU9ORT FROG. COSTr 3,365 420 9,104 33,33 MS 35 933 3.5 3,035 262 5,928 ?,205 323 60 3.303 2,633 du4 52 932 3,53 U39 II1 220 359

1IIYUCALCOKTU~~~~~~~IO8 3ZI 20 207 417 42 3 33 73 6 5 64 132 55 5 67 120 52 5 63 Ila 3 3 32 23M 3CUHI3KM 4M 365 46 so9 I,lo9 41 2 27 09 303 20 263 394 305 3 341 254 97 3 3in zz 23 2 42 65

TOrAL M MIRNOAL UflOT PROG. COST 3,73 435 30.40 14,675 41 972 1.701 3,179 29 6,210 7,731 912 73 2,030 3,065 7S3 65 3,335 1.934 343 34 233 445

LMEFW0 mIcOS 60.121 5,524 403,30 319,015 5,63 715 5433 33,33 9,779 l,3K2 14.762 26,044 33,209 1,594 11.930 20,203 10.316 3,34 3,33 30,56 2,62 349 2,29 5.256

F83TmaLa3ITlGmom 3.7183 522 3,456 7,763 530 09 448 3,07 393 126 397 1,916 1,327 358 1.064 2,348 1.006 1335 8 1.979 202 34 233 496

? 03KTU61ENCM 5.M3 G97 3,472 9.252 389 49 367 603 995 152 31 3,843 1,543 233 973 2,M3 3,632 223 1.191 3,096 475 63 434 972 ,

TOrM.DROSWTO3ST 43,~~~~~~993 6,744 33 1030,035 6,534 333 3,102 13,519 11.667 3,78D10 33,63 29,8108 34,310 3,962 13.991 30,333 33,006 1.7n3 30,930 250.63 3,355 446 2,935 3,736 :

0H1LD 1313029 2,793 20,77 43,363 Mot3 329 2,430 5,30 4,725 723 6,626 32.01 5,963 814 5,306 12,513 5,3 73 4,6537 30.39 3,476 196 3.29 2,964 M (

BASE ftWfl~ff OTfC5 X - MMLIN 135.045 2,07 13,264 33.381 2,332 263 2,053 4,438 3,667 563 5.536 9,766 4,393 591 4.433 9,420 3,86 532 3,320 7.711 35s 1333 59 3975 L)xFUTCAL C3muIGR4EN 413 (C 3dU.L10) 1,423 196 3,297 2,933 393 26 363 335 335 47 336 739 423 59 39 9 33 377 531 334 742 95 33 79 It374ftKC1NflU GE7UC8ES(CEDI-MI3,UAOt) 3,33 520 3,233 7,567 Mfi 335 134 497 723 330 754 31567 1,354 157 927 2,233 13231 120 9M ,443 396 53 354 U20 TOTAL IWO18T COST (C . MUAJON) 2029 2,793 A77 43,361 2.603 329, 2,410 5,340 4,725 723 6.66 32,07 5,963 314 5,306 32,3 S"5 73 4,637 106396 347 396 3,29 2,964 N)i

aHEL39f 43,99 3,744 3200306,035O 3,534 833 3,302 33,59 11.367 .7130 36,36 29.33 34,310 3.962 13,993 30.33 13.036 1.m2 10,90 250.3 3,35 446 2,935 3,736

REPUBLIC OF GHANA

National Feeder Roads Rehabilitation and Maintenance Project

Detailed Financing Plan

LOCAL TAXES FOREIGN TOTAL----- ..... ------- ----- COFINANCING

(Total Cost with Contingencies) ---------------------------------. fEEDER ROADS REHABILITATION AND MAINTENANCE PROGRAM (USS '000) IDA GOG USAID DANIDA OPEC JAPAN

1. RehabiLitation by Contracta. Capital-Intensive Contracts (1,500 km) 18,322 2,788 18,101 39,211 31,565 5,146 2,500b. Labor-intensive Contracts (1,000 km) 8,579 858 2,726 12,162 6,003 6,159Subtotal Rehabilitation by Contract 26,901 3,646 20,827 51,373 31,565 5,146 6,003 6,159 2,500 0

2. Regravelling by Contracta. Capital-Intensive Contracts (2,850 kIn) 12,135 1,847 12,028 26,010 13,932 2,456 4,684 2,438 2,500Subtotat Regravelling by Contract 12,135 1,847 12,028 26,010 13,932 2,456 4.684 2,438 2,500 0

3. Spot Improvement/Culverts by Contracta. Labor-Intensive Contracts (720 km) 4,443 432 1,257 6,132 6,132Subtotal Spot Improvements/Culvs. by Contract 4,443 432 1,257 6,132 0 6,132 0 0 0

4. Maintenance and Workshop Equipment, Tools & Sparesa. Recurrent Maintenance Spares 55 55 944 1,054 999 55b. Routine faint. Equip.& Spares/Motorcycles 61 61 1,049 1,171 1,110 61c. Routine Maintenance Handtools 128 18 211 357 339 18d. Workshop Equipment, Tools, Spare Parts 37 37 630 703 666 37e. Vehicles for DFR 47 47 821 916 869 47f. Mobile Radios 18 18 315 351 333 18g. Office Equipment 13 4 65 82 78 4h. Training Equipment and Aids 4 4 73 82 78 4

Subtotal Equipment, Tools & Spares 363 245 4,109 4,717 4,472 244 0 0 0 0

5. Design and Supervisiona. Engineering Design Consultants (200 m/m) 639 41 654 1,334 292 40 1,002b. Works Supervision Consultants (230 km) 760 49 784 1,593 1,544 49

Subtotal Design and Supervision 1,400 89 1,438 2,927 1,836 89 0 0 0 1,002

SUBTOTAL FEEDER ROADS REHAB. & MAINTENANCE PROGRAM 45,242 6,259 39,659 91,160 51,805 7,935 16,819 8,597 5,000 1,002

4I-

0

B. INSTITUTIOAL SUPPORT PRIOMM

1. MIrgemet Line Positfonsa. Contract Manageeent Specalit (56 Wrm) 101 0 556 657 657 0b. iLo Ltbor-b sed Training Spec. (30 Wnm) 55 0 301 356 356 0c. ualifled Accoimtants in RN (2x56 Wm) 43 6 72 121 121 0d. ProJect Swpprt by NRN 79 11 131 220 206 14Subtotat Management Lfne Positlons 278 17 1.059 1,354 1,340 14 0 0 0 0

2. Technical Line Positionsa. Medinicat Specialists (2x24 sNV) 112 0 605 717 0 717b. Plannfng Specialist (24 Wim) 56 0 303 359 0 359c. Road Maintenance Specialist (24 r"r) 56 0 303 359 0 359d. Ceputer Systems Analyst (24 Wim) 56 0 303 359 0 359Subtotol Technical Line Positions 279 0 1,514 1.793 0 0 0 1,794 0 0

3. United Nations VoLunteers (UMV) Supporta. Field Civil Engineers CSx24 rWM) 94 6 95 195 189 6Subtotal U.N. Volunteers (tEV) Support 94 6 95 195 189 6 0 0 0 0

4. Studiesa. Organization & Management Study (18 m/m) 77 0 222 299 0 299b. Feeder Road Ntce Mgmt. System (30 rm/) 131 0 376 507 0 507 1c. Socio-Economic Iqect Study (27 n/M) 66 3 36 105 105 3Subtotal Studies 273 3 634 911 105 3 0 507 0 299

5. Traininga. OFR External Training 24 16 729 769 16 753b. Koforidua Labour-based Training School 267 17 48 332 17 315c. Short-Temn Training T.A. (24 r/n) 62 0 338 399 0 399Sultotal Tre!ning 353 33 1,115 1,500 0 33 1.467 0 0 0

6. Local Construction Industry Supporta. Local Constr. Industry Assesment (18 0sm) 77 0 222 299 0 299b. Oomestic Contractor Training Program 526 31 60 617 31 586c. Light Labor-Based Contractor Equipment 0 219 3.970 4,189 219 1,976 1.994Subtotal Local Construction Industry Support 602 250 4,252 5,104 0 250 2.562 1,994 0 299

7. Rurat Mobility and Environeunta. Intermediate Means of Transport 453 91 1,228 1,772 91 1,687b. Tree Planting 260 15 30 305 15 152 138c. Environment and Women Support 230 15 59 304 15 289Subtotal Rural Nobility and Environment 944 121 1.317 2,382 0 121 152 2.108 0 0

8. DFR Decentralization Supporta. Institutional Analyst (12 rn/) 35 0 192 227 227 0b. Decentralization Staff (144 m/m) 466 25 316 806 761 45 >c. Decentralization Support and Study Fund 426 30 147 603 573 30 PSubtotal DFR Decentralization Support 927 55 654 1,636 1,561 75 0 0 0 0 (D X

xSUBTOTAL INSTITUTIONAL SUPPORT PROGRAM 3.750 485 10,640 14,875 3.195 502 4,181 6,403 0 598 N) z-0 PTOTAL PRJECT 48,991 6.744 50,300 106,035 55,000 8,437 21,000 15,000 5,000 1.600

-125

- - ________ ___________ __________--A nnex 4-14

6' a~~~~~~~~~~~~~~PaeIo

ay a

Reoublic of GhanaNational Feeder Roads Rehabiitation and Maintenance ProLect (NFRRMP)

Schedule for Processina Procurement and Implementation

1992 1993 1994 1995 1996

Components pcurinet ddwerie Q2Q3Q4QIQ2Q3 Q4 QI Q2 Q3 Q4 QI Q2 Q3 Q4 QI Q2 Q3 Q4

A. Civi Wodcs

2. Regmavlinga. Sdction d design

phas I DonePhase 2 xxzxxxxxPhase 3 _Phase 4 _KTVVxVTxTYWTxVWTWxW

b. TenderingPhaw I xxxxxxPbase 2 _Phase 3 _Phae4 4xx

c. ExecutionPhan I Phase 2 _ I..'Phase4 3

Q2 Q3 Q4 QI Q2 Q3 Q4 QI- Q2 TQ3 Q4 Q l Q2 Q3 Q4 Ql Q2 Q3 Q

M0 D

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Page 3 of 6

a! 'aL ]X | ]] j

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Ga_ j _ N a . V 1 3 i

a ai

Republic of GhanaNational Fecdcr Roads Rebabilitation and M itenn Proje NFRRMP)

Schedule fo Processing Prorenent and Imlementation

1992 1993 1994 1995 1996Coa-poneu & procurementdeiries Q2 Q3IQ4IQlIQ2IQ3 IQ4 Ql Q2 Q3 Q4 Ql Q2 Q3 Q4 QI Q2 Q3B. Equipment and Spa]

a. P _ocuremat documcnts ruxxxb. Tedring xxxxxxc. EvWluationa xMDLXXXXd. Ddhevy XXXXXXXmm

C. Studies1. OhMa. Procureman documents Doneb. Proposls Donec. Evaluation xxxd. Execution XXXXXXXXXXXX0. hnzplemieitation

0I

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, . . _ .- . . . _ - . - . -~~~~~~~~~~~~~~~~~~~~~~~~~~O

- 129 -

______________ ~~~~~~~~~Annex 4-14

: § = J _ _ | ~~~~~~~~~~~~~~PageS of 6

6i11x

- 130 - Annex 4-14

Page 6 of 6

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- 131 -


REPUBLIC OF GHANA

NATIONAL FEEDER ROADS REHABILLTATION AND MAINTENANCE PRO.ECT

Supervision Plan

IDA input into the supervision effort as outlined below is in addition to regularsupervision needs for the review of progress reports, procurement actions, correspondence,etc., estimated to require 12 staff weeks per year for the first two project years, and 8 staffweeks per year thereafter.

ApproximateDates of Input Expected Skill(mo/yr) Activity Requirements Staff Weeks

6/92 Supervision Mission Task Manager 5(Project Launch Road EngineerWorkshop) Institutional Specialist

Transport Economist

10/92 Supervision Mission Task Manager 3Road Engineer

2/93 Supervision Mission Task Manager 3Institutional Specialist

6/93 Supervision Mission Task Manager 5(Coordination with Road EngineerUSAID and DANIDA) Institutional Specialist

Transport Economist


2/94 Supervision Mission Task Manager 3Institutional Specialist


Transport Economist

- 132 -


10/94 Mid-Term Project Task Manager 6Review Road Engineer

Institutional SpecialistTransport EconomistEnvironmental Specialist



Transport Economist


2/96 Supervision Mission Task ManagerInstitutional Specialist


Transport Economist


2/97 Supervision Mission Task Manager 5(PCR Preparation and Road EngineerCoordination with Institutional SpecialistUSAID and DANIDA) Transport Economist

AF41NNovember 1991

(P.NFR)

REPUBLIC OF GHANA

NATIONAL FEEDER ROADS REHABILITATION AN MINTENANCE PROJECT

MONITORING MATRIX

COMPONENT ACTIVITY PERFORMANCE MONITORABLE MONITORABLEINDICATOR TARGET BY 6193 TARGET BY 6194

1. Physical Works a) RehabilitatonPh. I1- 540Jlni) Preparation of

Engincrnag Design Stage of Final Report Cleared by WB by January,& Bidding Document 1991

ii) Pocurement for Stage of Completion Complkt with WBIGOGContractors clearance thus:

LCB - October, 1992ICB - January, 1993

iii) Procurment for Stage of Completion Completed. Cleared bySupervision Consultant WB/GOG. Consulants on

board by April, 1992 w

iv) Actual Construction Length (km) or percentage of At least 60% of LCB At least 100% of LCB,work done 30% of ICB 90% of ICB

completed completed

b) RehabilitationPh. 11 - 1140kmi) Preration of Stage of Final Report Cleared by WB by October,

Engineering Designs 1992& Bidding Documents

ii) Procurement for Stage of Completion Complete with WB/GOGContractors clearance thus: Completed by September,

LCB - July, 1992 1993ICB - September, 1993

0 I

la%

COMPONENT ACTlVITY PERFORMANCE MONITORABLE MONrTORABLEINDICATOR TARGET BY 6193 TARGET BY 6194

Physical Works (cont'd) iii) Procurement for Stage of Completion Complete with WBIGOGSupervision Consultant clearance. Consukant on board

by April, 1993

iv) Actual Consruction Length (km) or % age of work Contractors mobilizing to start At least 95% LCBdone LCB 66% LCB

c) RehabilitationPh. 111 - 800kmi) Prepartion of Stage of Fnal Reports Cleared by WB by June, 1993

Engineering Design &Bidding Documents

ii) Pocurment for Documents to be cleared by Prqualification documents LCB ready to startContractors WB ready ICB cleared by WB, being

. _________________ __________________ cleared by GOG

iii) Procurement for Documents to be cleared by Proc irmnent documentssupervision consultants WB/GOG clearcl by WB. Invitation for

._________ _ proposals issued

iv) Actual Construction Length (KM) or % age of Contractors mobflizing towork done start work

d) RegravellingPh. I - 510kmi) Preparation of Stage of Fmal Reports To be cleared by WB by

Engieering Design & March, 1992Bidding Documents

ii) Procurement for Stage of Completion Completed and cleared by WBContractors by August, 1992

iii) Actual Construction Length (kin) or % of work Al least 90% completeddone

c) RcgraveUingPh.2 - 670kmi) Prqpartion of Stage of Final Reports For clearing by WB by June, >

Engineering Design & 1993 oQ:l __________________ Bidding Documents

0 l

COMPONRNT ACTIVITY PERFORMANCE MONrrORABLE MONITORABLEINDICATOR TARGET BY 6/93 TARGEr BY 6194

Phyeal Work (oont'd) n) Procurement for Sta of Compldion Ready for WB Clearance byContractors June, 1993

iii) Actual Constuction Legth (kim) or % agc of work Contuction shtuts July, 1993 At least 90% (LCB)done completed by June, 1994

t) RegavedingPh. 3 - 870bni) Preparation of Stage of Final Reports For clearing by WB by June,

Engineing Desin& 1993Bidding Documents

ii) Procurement for Stage of Completion Completkd and cekared byContractor WB January, 1994

ii) Actual Constnuction Lcngth (kin) or % age of work At last 30% competeddone

g) RegravellingPh.4 - 1070nkmi) Preparation of Stage of Final Reports Ready for clearmg by WB by

Engineering Design & June, 1993Bidding Documents

ii) Pocurement for Documents ready Bids ready and beingContrators evaluated, 50% compktd

by June, 1994

iii) Actual Construction LAngth (lkn) or % age of workdone

h) Spot hmprovement LeAgth (kin) covered by 300 kn (92/93) designed. 75% 400 km (94195) designed.designs and extent of of 92/93 program compleed 60% of total progrmConstruction completed

2.1 Studies a) OrgaWnaon and Reporting stage reached Final study report submitted Implementation ofManagement (O & M) by Decenber, 1992 recommendation

b) Maintenance Performance Reporting stage rtached Final study report subnitted Pilot knplementationbudgeting system (MPBS) by May, 1993 complded by April, 1994 o

o mxh.Io

0I

COMPONENT ACTIVITY PERFORMANCE MONITORABLE MONlTORABLEl________________ INDICATOR TARGET BY 6193 TARGET BY 6194Stdi_ (_oo'd) c) Local Contracbing Reporting stage reached Draft Final submited May Iplementation ofIndusty (LCI) '93. Fmal report in progress recommendation being

(50%) finalzedd) Socio-economic Impact Reporting stage reached First Draft Final Report on Draft Final Report on short-Studies Immediate Impact submitted term impact for RegraveDing

for Regmavefling and Spot and Spot Impsovement andImprovement Draft Fial Report on

Immediate Impact of 560 kmLCB

2.2 Implenentation of Study a) ODM Stage reached Open ended. To be based on To be based on study reportRecommendations study report

b) MPBS i) No. of pilot roaddisticts

ii) Coverage of rcievant DFRProfessional & Technical (i), (ii) & (iii) started (i), (ii) & (iii) 100%staff completed

iii) Stage of computerization __ _

c) LCI Stage reached Not started Implementation 100%______ _____ ____ . com pleted

d) SEIS Extent recommendation used Open ended Open endedto refine socio-economic &selection criteria

3.1 Institutional Support a) Contract Managemnent Stage of recruitment On board by April 1992 On boardSpecialist (CMS)_

b) Finance/Accounting Stage of recruitment On board by April 1992 On boardSpecialists (FAS)

c) Mechanical Specialist (MS) Stage of recruitment N/A - already on board N/A - already on boardd) Planning Spocialist (PS) Stage of recruitment On board by November 1992

e) Computer Specialist (CS) Stage of recruitment N/A - already on board __ _

f) Road Maintenance Engineer Stage of recruitment On board by July 1992 under Xl _ _ _ _ _ _ _ _ _ _ _ (RME) o I _

COMPONENT ACIIVISY PERFORMANCE MONITORABLE MONITORABLEl________________ INDICATOR TARGET BY 6193 TARGET BY 61943.2 Staffing a) Proftesional staff Nwnber in place Open ended to be based on Open ended to be based on

ODM ODM

b) Technical Staff Number in place Open ended to be based on Open ended to be based onODM ODM

c) Managenent Staff Deputies in place 3 Deputies including DeputyDiector (Planning) in place

3.3 Training a) Professional No. Trained Overseas Open ended Open endedNo. Trained In-CountryNo. Trained In-House

b) Technical - do - - do - - do -i_________________ ic) Management - do - - do - - do -

4. Budgetting & Consolidation of Annual Level of preparation 92193 ready 93/94 readyExpenditurs Budgets & Expenditures for allFunding Sources _

5. Disbursaemnt Effecting Payments (IDA only) Level of IDA disbursement 25% as per SAR 52% as per SAR

DZ 0oq a

o l

PROGRAM OF KEY EVENT

RMPlIATM!ON WORKBS

PH. 1- 560KM PH. 11 - 1,140KM PH. m - 800KM

1. Pqwation of En&axing Deigs and Biding January, IM October, 19 Juno, 1993Doenmn com; wih World Bank Clea_nce _

2. P Ranent for Coator compld with LCB June, 1992 LCB August, 1993 LCB May, 1994WBIGOG/ clearance ICB Daember, 1992 ICB Septmber, 1993 ICB July, 1994

3. Poemeci_t for Supevision Consullants complet April, 1992 December, 1992 Fuary, 1994with World Bank clearance

4. Actual Conslulc arts and ens LCB Oct., 1992-Oct., 1993 LCB Dec., 1992-May, 1994 LCB July, 1994-July, 1995ICB Jan., 1993-Jul., 1994 lICB Oct., 1993-Mar, 1995 ICB Aug., 1994-Dec., 1995

co

x

0 1

0 I.B0'

oo

Reoublic of GhbuNatio Feeda Roads 1 RHbiation nd Maintena Proieet (IFRRM

rme basd Insiutionm Stqena inn SuSoit jna_

1992 1993 1994 1995 1996

______ Q2 Q3 |Q4 Ql Q2 Q3 Q4 Ql Q2 Q3 Q4 QI Q2 Q3 Q4 Ql Q2 Q3 Q41. I_kutaISuot - CoQsttAT.A.

1. M _anmen lin -Pa. Cosac Manageno_ t Specaist

(i) Poessing of pocuranen: DFR done(it) Review & clearance: WB done

(rii) Approval of conact: GOO xxxxx(lv) Pcriod of assigninmen

b. IL0 Labor-based Tmining Speiis(i) ip ing of p mocet DFR xxirn

(ii) Review & cleaanc: WB xxxix mx(iii) Approval of conact: 000 xxx(IV) Period of

c. 2 Acco_un MU(i) Pcessing of procmae DFR

(ii) R cvw & clearance: WB xxx(dii) Approval of contrct: GO xxx(w) Period of assigment:

d. Projea Support by MRH(i) Proessig of procaent: DFR xxxxxxxxxxx

(-d) Review & cleaance: WB xxx(iii) Approval of coutrac: 300 xxx(iv) Paeiod of asig_ment_

2. TechnI LAe Positionsa. Mechanial Specialsu (2)

(i) ProceiSg of procremt: DFR xxxix(i) Review & learance: WB xxx

(di) Approval of contct: 00 xxx(C) Period of assignment:

Q2 Q3 Q4 QI Q2 IQ3 IQ4 QI Q2 IQ3 Q4 QI Q2 Q3 Q4 QI Q2 Q3 Q4

>

o 1

1992 1993 1994 1995 1996

_________________________ Qi QI3 Q4 Qi Q2 Q3 Q4 QI Q2 Q3 Q4 IQI Q2 Q3 Q4 QI Q2 Q3 Q4b. PRa _Specit

(i) Nming of procurnft DPR (ii) Rwie & cleerme: WI xxx

(iii) Appoval of contUac 000 xxx(lv) Period of asigmma

c. Road MabnteaaSpeclitO) P _toceief p_m :ut DFR xxxx

(ii) Revie & dc ance: WB xxx(ri) Approval of conrac: 000 xxx(iv) erd ofasgnn

d. Compute Spechialit(I) hPceng of procurement DFR xxxix(i) Review h dckranc: WB xxix

(m4i) Appv of contra: 000 xxxx(iv) Period of signment

3. U.N. Vduntesa. Fded Ci EnAieer

(I) Procesing of prourment: DFR xxxxx(2)* m~~~~~~~~~~~xxxx()

* ~~~~~~~~~~~~~~~xxxxx(1)( .) Revie & lerne WI XXX(2)

. xxx(2) 0ZR&c:~~~~~~~~~~~~~~~~~~~~XXI IBa

(i) Apprva of contrct: 00 xxx(2)* ~~~~~~~~~~~~~~~~xxxv2)

* ~~~~~~~~~~~~~~~~~~~~XXX(I)(lv) Paiod of aigment

* .. f....wnwyT.._l.yrvv..ty.n

4. Tranga. Trmining Overse

(i) Sdectlon of lnsutions: DFR Xxxxx(Group 1). . xxxxxx(Group 2). . xxxxx(Group 3)

(ii) Period of taining:

Q2 Q3 Q4 QlI Q2 Q3 Q4 QlI Q2 Q3 Q4 QlI Q2 Q3 Q4 Ql Q2 Q3 IQ4

, CD

0D 1

Ns

1992 1993 1994 1995 1996

________________________ Q2 Q3 Q4 Ql Q2 Q3 Q4 QlIQ2 Q3 Q4 QI Q2 Q3 Q4 I IQ2 Q3 Q4b. Kmwiib dEsb.umd Taing

leod of srIinbF cp). (ckoup).* :koe3 )

. . s _ 4~~~~~~~~~~~~~~~~~KAXPW)

c. I4am TeaaingT.L(i) Pe@emg of pocazeaca DFR uxx uc (-) Review & d_wmnc WB xxx xxx xxx

(i Apovd of comza 000 XO xxx xxxf(w) Perid of _4gfae: irixx Uxxx

* ~~~~~~~~~~~~~~~xxuxxxxxxxxm. x _ ___ .

S. OFR DsmftuimCma. Dhccua1iution Staff h Suppon

Os) Erdotion of reqvuimna xxxuxxxxXXXuXuXXXzXXX XXzrnXXXXX0 i2) DeIeatraiihn) l. = 2xxxxxxxxxxxx(Smage2)

. xxxxzxxxxxxxx(St&Xe3)n I__kiaa Sunol &Siudes 1. rpoaficla MA_m (aamat CO ) SWdy

Os Pm agof p _umc DFR urn(. 6 iiRv#* &4=cw& WBB

(m-) Appravat ofacon:z MGOO xxxXCtw) Swid p=Wb: C ,sARgI x =XXK(V) k_uuon f R :omnaim

2. Rood Ilamenanc Peformace BudgeingSygm t) Swdy) PN gins of plucumef: xx

(H-) Revie& .earanoe: xxx(ii) Appoa of conrat xxxXX(IT) StudY pew: (v) h nten of RPc_mmendatim:

Q2IQ3 Q4 QI Q2 Q3 Q4 QI Q2 Q3 Q4 QI Q2 Q3 Q4 QI Q2 Q3

O>

CD 0

-Q 3M JD

0 1

I992 1993 1994 1995 1996

_Ql I QQ IQ3 Q4 Ql Q2 Q3 I Q4 I Ql I Q2 I Q3 Q4 QlI QQ Q3 Q4 QI Q2QI Q4

3. CanstraouiIm1uoWyfi) P_mmmigof pocumcnmR DFR

(i) Rcwew & _bm:s WB xxmt(iii) Appf. -a of cmiram 000 xxx(s) Study pelod: Cuka(v) ImPluatation of R

4. Soci:bo.oaoi Impac Study(I) Poceuia of pwcemax

fal) Reviw & dwauc |Xxx

(W) Stuy paiod: xxxmxxxxx xxmxxxxxxx xxxxxxxxxxxxx xxxxxxxxm

QI Q2 Q3 Q4 QI Q2 Q3 Q4 QlI Q2 Q3 Q4 QlI Q2 Q3 Q4 QlI Q2 Q3QI

e >

t'J

(D tD

oq,0tgl1 I-

- 143 - Annex 4-18

Detailed Procurement Table

(UtS Million Equfvalent) (I.D.A. shown in parentheses)

Ice LCU OTHER SHOPP. NA TOTAL

PROJECT ELEMENT

1. CIVIL WORKS

1.1 C.-I. Road Rehabilitation 31.20 8.00 * - - 39.20(27.14) (4.42) (31.56)

1.2 L.-I. Road Rehabittation 12.16 12.160.00

1.3 Regrovelliig 13.09 5.80 - 7.12 26.01C11.39) (2.55) C13.93)

1.4 Spot Improvement/Culverts - 6.13 6.130.00

1.5 BuildIng Works - 0.33 0.330.00

.... ....... .. ..... . ...... ...... ....... ....W.... ........

Subtotal Civil Works 44.29 13.80 0.00 0.00 25.74 83.83(38.53) (6.97) 0.00 0.00 0.00 (45.50)

2. GO0S

2.1 MaintenAnce Equipnent, 3.29 4.19 7.48Spares & Tools (3.11) (3.11)

2.2 Vehicles 0.92 . 0.92(0.86) (0.86)

2.3 Mok*Le Radios ' 0.35 0.35(0.33) (0.33)

2.4 Office Equipmant L Aids 0.16 0,16(0.15) (0.15)

Subtotal Goods 4.21 0.00 0.00 0.51 4.19 8.91(3.97) 0.00 0.00 (0.47) 0.00 (4.45)

3. T.A. & STLIDES

3.1 Management Lirn Positions -0.9 0.98(0.97) (0.97)

3.2 Technical Line Positions - * - 1.79 1.790.00

3.3 U.N.V Support - - 0.20 0.20(0.19) (0.19)

3.4 Studies - . 0.70 0.51 1.21(0.10) (0.10)

3.5 Training T.A. . - 0.36 - 0.40 0.76(0.35) (0.35)

.... ..... ... ........... ......... _........ ...... ........ . .....

Subtotal T.A. & Studfos 0.00 0.00 2.24 0.00 2.70 4.940.00 0.00 (1.60) 0.00 0.00 (1.60)

4. ENO., TRAINING, OTHER SUPPORT

4.1 Eng. Desfgn & Supervision - 2.93 - 2.93(1.87) M1.67)

4.2 Rural Nobility/Environment . . * 2.38 2.380.00

4.3 DFR & Contractor Training - . 1.39 1.390.00

4.4 DOcentralitation Support - 1.64 - - 1.64(1.58) (1.58)

Subtotal Eng., Training, 0.00 4.57 0.00 3.77 8.34Other Support 0.00 0.00 (3.45) 0.00 0.00 (3.45)

m _ _ _ _ - _ _ - _

ORMQ TOTAL 48.50 13.80 6.81 0.51 36.40 106.02(I.O.A.) (42.50) (6.97) (5.05) (0.47) 0.00 (55.00)

PERCENT OF TOTAL 45.75X 13.021 6.421 0.481 34.331 1001CI.D.A.) 77.28X 12.67X 9.19X 0.86X O.00 100X

ininin - - -u m

- 144 -Annex 4-19

Page 1 of 2

REPUBLIC OE GN


Disbursement Schedule a/

Cumulative Disbursements

Quarter Appraisal Cumulative Standard Disbursement ProfilesEnding Estimat % Ghana Africa Region

All Sectors Transportation(US$ Million)

FY92June 0.50 1% 0% 0%

FY93September 3.40 6% 3% 2%December 6.30 11% 6% 3%March 9.20 17% 8% 7%June 12.00 22% 10% 10%

EY2ASeptember 15.70 28% 14% 14%December 19.40 35% 18% 18%March 23.10 42% 22% 24%June 26.90 49% 26% 30%

2Y9SSeptember 30.50 55% 32% 38%December 34.10 62% 38% 46%March 37.70 68% 44% 52%June 41.20 75% 50% 58%

FY96September 43.80 80% 54% 62%December 46.40 84% 58% 66%March 49.00 89% 66% 72%June 51.60 94% 74% 78%

PY97September 52.50 95% 78% 80%December 53.40 97% 82% 82%March 54.30 99% 86% 86%June 55.00 100% 90% 90%

- 145 -Annex 4-19Page. 2 of 2

EXfSeptember 92% 92%December 95% 95%March 98% 98%June 100% 100%

a/ Credit assumed to become effective on April 1, 1992

AF41NNovember 1991(Dubumm.NFR)

- 146 -


REPUBLIC OF GHANA


Environmental Assessment

A. Direct Enviromnental Impacts of Feeder Road Rehabilitation

1. Feeder road rehabilitation by labor-based methods results in some, althoughminimal, direct environmental impact on the immediate area if the roads remain in goodcondition. The construction methods applied provide for adequate side drainage and thedispersion of water from side drains by means of culverts placed in topographicallyappropriate locations. Culvert siting is done by the regional or road area DFR engineers andis determined using 1:250,000 scale topographic maps when available. Larger-scale mapswould be better, but currently are unavailable in Ghana. Similarly, aerial photos do not existto supplement the culvert sitings. Du'e to the expense and the difficulty with placingreinforced pipe culverts with sufficient fill under the labor-based program, DFR hasdeveloped a new type of box culvert in 1-meter or 2-meter sizes. The bottom and the sides ofthe box culvert are constructed of concrete and the top of locally supplied hardwoods. In thefuture, DFR is planning on pi viding reinforced concrete slabs to the box culverts instead ofusing the hardwood planks.

2. The corract camber placement, if maintained, should improve local runoffcharacteristics. Presently, most of the unimproved roads are in such poor condition that sheetand gully erosion results along the center line of the roads. In addition, the side drains of theunimproved roads have disappeared, leading to increased destruction of the soil and roadembanhnents. The improved roads provide for adequate dispersal of water into the sidedrains and the disposal of the water down the side drains into small streams and naturaldrainage systems through runouts. Erosion in the side drains is slowed by periodic scourchecks. The labor-based construction methods appear to consistently produce better camberthan the equipment-based construction methods. However, if the assumed spot improvementand maintenance of the labor-based roads is not provided by DFR through its MOREMATunits and the communities, the destruction of the camber and the side drains could exacerbateincreased soil erosion and sedimentation of surface water. Continued road maintenance iscrucial to mitigating the environmental impacts of the feeder road rehabilitation.

3. Equipment-based construction of feeder roads has a more adverse effect on theenvironment. The use of large graders and bulldozers scour the side banks, especially inareas where streams had been temporarily diverted for the placement of pipe culverts. Alongthe Addah Junction-Mepe feeder road in Volta Region, for example, rather large areas on 15to 20% slopes had been cleared in the placement of side banks and culverts. In one case, theerosion of a sideslope near a small stream indicated increased erosion and sedimentation of thewaterway, which bas environmental and health impacts on the community. Equipment-basedconstruction is also more energy consumptive than the labor-based technology and, given thediffnculty in acquiring spare parts, more likely to result in the abandonment of equipment inrural areas.

- 147 -


4. A negative environmental consequence of both labor- and equipment-basedtechnologies is the excavation of borrow pits in the vicinity of the roads. In the case of theequipment-based construction method, the excavation leaves a much larger area that tends tofill with water. With the labor-based method, the excavations are smaller, locally placed, andrelatively shallow. In both cases, the contractor is required by contract to remove and storethe topsoil and replace it and revegetate the area after completion of the work. Contractorsinterviewed have not done this and it appears that they do not consider this an obligation ofthe contract. The larger pits, not being revegetated, collect large amounts of rainwater runoffwhich potentially contributes to an increase in diseases such as malaria and bilharzia. Thesmaller pits, no longer being used for other beneficial land uses, contribute to increased soilerosion. At two of the sites visited (Addah Junction-Mepe and Datano-Sunienso model roadsin Sefwi-Wiaso), signs of significant soil erosion were evident. In some cases, the excavatedpits are to be left ope-i for future maintenance activities.

B. Indirect Environmental Impacts of Feeder Road Rehabilitation

5. Since a large number of unimproved feeder roads in Ghana are almostimpassable, the rehabilitation can be considered to open up rural areas similar to new roadconstruction. Therefore, it is necessary to evaluate the potential indirect impacts of therehabilitated feeder roads on regional environments. This is especially true when rehabilitatedroads pass through or are contiguous with environmentally sensitive areas, such as forestreserves, wetlands, or wildlife sanctuaries (see map). Increased access to markets andopportunities for production of high-value cash crops for rural households could, conceivably,lead to increased pressure on natural resources. The rehabilitation of feeder roads representsonly one of the variables compared to another. However, in the future, there are two caseswhere the rehabilitation of feeder roads could have negative indirect environmentalconsequences and which need to be investigated.

6. The rehabilitation of feeder roads in cocoa-producing areas improves theefficiency of cocoa evacuation and, therefore, could induce increased production or a shift inland use. This could result in increased pressure on the forest reserves, since land forexpansion of production is generally scarce in these areas. However, it is unclear whichvariables affect the intensification or the expansion of cocoa production the most. Prices havebeen favorable to producers and rain has been above average for the last several years.Improved roads definitely increase the potential for better marketing, but since producers canstore cocoa up to one year on farm, the road access is not as crucial as with perishable fooditems. Also, the Cocoa Marketing Board (COCOBOD) has an extensive network of cocoadepots (within not more than a five-mile radius from all producers and, in fact, probably closeto one mile from most producers) that facilitates the transport of cocoa to the depots byfarmers. Improved roads decrease transport costs and increase ease of remuneration, but it isdifficult to state categorically that improved roads are the incentive for increased production.They are probably a factor, but may not be the overwhelming one. The improved roadsprobably do not affect the collection of cocoa at the depots by COCOBOD, since most oftheir trucks are 40 tons and the maximum accessible load of the feeder roads is 5 tons.

7. Improved feeder roads may also affect the amount of national forest logged.It is not expected that this will result in increased production by the timber concessionaires,since their quotas are strictly imposed and regulated. However, the independent loggers are

- 148 -


harder to monitor and it is possible that the improvement of the feeder roads through forestreserves could increase the pressure on the resources from this group.

8. The Forest Department is starting to inventory and monitor the cutting of allprimary species. Class I species (see Attachment 1) are all individually identified andconcessionaires cannot cut these trees until they reach a mini num girth. Due to theencroachment of agriculture, certain species, such as odum (Milicia excelsa and Milicia regia)are facing extreme pressure. The export of these hardwoods is now limited, but therehaoilitation of feeder roads could have an impact on the amount of trees felled by un-licensed cutters.

9. In the charcoal-producing, areas of the country, the rehabilitation of a feederroad could increase the cutting of trees. The rehabilitated road would make it easier to getthe charcoal out of the area, increasing the economic potential of the product. Data fromNkoranza District indicate the importance of good roads to the price of charcoal. The priceof charcoal in the rural areas of Nkoranza is C400 per bag. If the producer is able totransport it to Nkoranza, the price rises to C800 per bag. In Sunyani, the cost is C1,200 andin Accra, charcoal sells for C2,000 per bag. An economic analysis of the supply and demandand the amount of the sale price that is attributed to transport cost has not been done, but it isclear that the rehabilitation of feeder roads in the district will impact on the amount ofcharcoal produced and, the price offered in Nkoranza and possibly further away. Theincentive to produce more charcoal will have definite adverse environmental impacts if notcontrolled.

10. A significant indirect impact of feeder road rehabilitation could be theincreased soil erosion if the roads are not routinely maintained by the communities.Sustainability depends on the contribution of labor by the communities served by the roads.Therefore, it is crucial that a planning process be developed that provides methodologies andtechniques for facilitating community participation in feeder road miaintenance to minimizefuture environmental impacts.

C. Overall Recommendations for Mitigating Environmental Impacts

11. Both the potential direct and indirect impacts of rehabilitated feeder roadswere considered in developing the recommendations that follow.

Recommended Changes in Feeder Road Maintenance Practices

* Encourage labor-based road rehabilitation technologies as much as possible.

* Require, before the final payment is made to contractors, that stockpiledtopsoil is replaced and gravel pits revegetated. This provision should also bespecified in the bill of quantities of future tender documents so that contractorsrecognize the requirement during the preparation of tenders.

* Minimize the number of excavated pits and practice soil stabilization in areaswhere steep slopes exist to minimize erosion.

- 149 -


* Replace the hardwood timber culvert tops with reinforced concrete slabs topreserve the primary species or work closely with the forestry department todetermine the quotas for certain species and the amount of wood that DFR cancut.

* Deiciop an environmental section of the ILO Training Handbook that wouldiemonstrate to contractors the procedures for minimizing soil erosion, gravelpit use and restoration, and minimizing destruction of contiguous areas.

* Develop procedures for the compensation of landholders who lose land togravel pits. This is an issue in certain areas and one which could affect futurecommunity participation.

* Develop environmentally sound procedures for both labor- and equipment-based technologies for crossing wetlands cr streams.

* Provide decent topographical maps and adequate training to engineers for thedesign of drainage control systems.

Planning for Mitigating Indirect Impacts

12. First, problems with consistent labor supply for routine maintenance havedeveloped due to a lack of understanding on the incentive systems of the communities. Abetter understanding of available labor and incentive structures of rural communities isnecessary to facilitate the community participation in feeder road maintenance. To enhancethis understanding, an applied research effort would be necessary. Several communities indiverse ecological and socio-economic situations would need to be selected for case studiesthat identify the following key variables affecting community participation in feeder road

j ~~~maintenance:

* the seasonal household and community labor profiles (by gender) andconstraints;

* the spatial location of households in relation to the rehabilitated feeder roadsand their participation in routine maintenance;

* the role and influence of traditional and other leaders in mobilizing communitywork efforts;

* the role of direct incentives in community participation in feeder road routinemaintenance;

* the role and influence of road committees in the community;

* the major beneficiaries of the road in the community and their contribution toroutine maintenance;

- 150 -


9s the influence of DFR and other training programs on community-based routinemaintenance;

o the relative importance of the rehabilitated feeder road to the community; and

* the potential role of the community in evaluating direct environmental impactsof feeder road rehabilitation.

13. Second, DFR should develop mobile training seminars for communities on thenecessity of routine maintenance for the sustainability of feeder roads. DFR would use videosand other media to explain the damaging effects of soil erosion on the conditions of the roads.These seminars could also be used in collaboration with other extension services, such asfunctional literacy campaigns, mobile planning units, the Ghana Information Services, and theGhana Education Service, to expand environmental awareness. For example, discussions onthe control of soil erosion in the side drains could be expanded to discuss village andagricultural soil erosion. DFR has produced one video presentation of labor-basedrehabilitation for education purposes and this recommendation would fit in well with DFR'straining focus.

14. Third, DFR should liaise and coordinate with the Enviromnental ProtectionCouncil (EPC) on the development of criteria and a planning process to identify feeder roadsthat may have direct and/or indirect environmental impacts. This would include, but not belimited to, those feeder roads that cause direct impacts in crossing or passing wetlands, forestareas and reserves, wildlife sanctuaries, and other environmentally sensitive areas. Inaddition, DFR and EPC should develop procedures for conducting environmental assessments(EA) on feeder roads that are considered to potentially impact on the environment.

15. Fourth, after the road area prioritization of roads to be rehabilitated, DFR willcoordinate the final selection with MA, the Department of Forestry, and the EPC to determinewhich of the roads could possibly have environmental problems. It is necessary for theForestry Department and DFR to work together to insure proper identification of potentialproblem areas and methods for enforcing cutting regulations. In the case of feeder roads withpotential adverse environmental impacts, it must be determined which organization will beresponsible for conducting the EA.

16. Fifth, DFR should consider the development of a spatial data base, such as aGeographic Information System (GIS), to assist in recording maintenance activities, designingculverts and drainage systems, and storing information on land use in road influence areas.The EPC has both ERDAS and ARC/INFO GIS setups and would be available to assist DFRin establishing a relevant system. The data bases developed could also be used to assist theDepartment of Forestry and the Ministry of Agriculture in identifying changing land-usepatterns and impacts on the communities due to these changes.

17. Sixth, DFR will continue to use consultants to conduct engineering studies andthe preparation of documents suitable for international and local competitive bidding inaccordance with World Bank requirements. The consultants should consider all of the aboverecommendations in completing their studies. This is especially true when the consultants

- 151 -


assess the condition and structural adequacy of existing drainage structures and facilities witha view toward recommending improvements to meet hydrological and hydraulic needs.

18. Seventh, training for DFR staff and local contractors should includeworkshops, seminars, and field trips to institutionalize environmental awareness into DFRprograms. During future design phases of the NFRRMP, World Bank staff should identifymethods, approaches, and programs to train DFR staff on the integration of environmentalconcerns into DFR planning, design, and training activities. Additionally, Bank staff shouldinvestigate ways to assist DFR in the establishment of a library on environmental irmpacts ofphysical infrastructure projects. Additionally, several DFR staff should be trained in EAmethodology.

AP41NNovembr 1991

(EnwiAsew.NFR)

- 152 -


REPUBLIC OF GHANA


Economic Analysis

A. Evaluation Methodology

1. The methodology used in evaluating benefits and costs for feeder roadselection was based on Beenhakker's and Lago's "Simplified Operational Procedures forScreening and Appraisal" (see World Bank Staff Working Paper No. 610, 1983). Thismethodology outlines various options for analyzing the returns from rural road investments.

2. The economic evaluation was based on estimates of internal rates of return foreach of the proposed feeder road investments. Cost estimates for rehabilitation andmaintenance of phase-I feeder roads (560 km) were obtained from engineering studies carriedout by three local consulting firms in four high to medium agricultural potential zones. Thesezones are Accra-Ada, Ejura-Kintampo, Salaga-Bimbila, and Wa-Tumu-Fian (see map).

3. Phase-2 feeder roads (1,140 km) are located in Mampong, Sunyani,Techiman, Bekwai, Cape Coast, Hohoe, Yendi, Tamale, and Tumu road areas.Rehabilitation cost were estimated by socio-economic consultants who did the feeder roadselection, following procedures for cost estimation and unit cost data established by DFR.The same procedure will be applied for the economic analysis of the remaining phase-3 (800kIm) feeder roads.

4. Engineering studies for phase-2 roads still need to be done. Rehabilitationcost estimates reflect each road's present condition and the anticipated maintenancerequirements after rehabilitation. Average costs of routine and periodic maintenance ofUS$350 and US$7,150 per km and year, respectively, were used. These cost estimates arebased on analysis of recent projects executed by DFR.

5. On all feeder roads pre-selected for the project, the main benefits fromrehabilitation are estimated with the producer surplus approach. The formulation used toassess economic benefits is the one prescribed by Beenhakker and defined as follows:

(1) B = Pm(Q2 - QI) - (C2 - CI) - (K2Q 2 - KIQI)

or

(2) B = B1 + B2

with:

- 153 -


B1 (Benefits accruing to farmers) and B2 (Benefits accruing to transporters) calculatedaccording to:

(3) B1 = P2Q2 - PIQI - (C2 - Cl)(4) B2 F2Q2 - F1QI - (K2 Q2 - K1Q1)

where: P., = crop's local market price ($/ton);

P1,P2 - farmgate price of product in the without and with project situation($/ton);

Q,,Q2 = exports of products from the road's zone of influence in the withoutand with project situation, respectively (tons);

CIAC2 = economic cost of producing the entire agricultural product underconsideration in the with and without project situation, respectively($;

, ,FJ2= fare for transporting one ton of exportable surplus over the rural roadin the without and with project situation, respectively ($/ton); and

K1,K2 = economic cost of transporting one ton of exportable surplus over therural road in the without and with project situation, respectively.

6. The evaluation of the proposed feeder road investments was done with thesecond formulation (equation 2) using farmgate prices. Data for the rate of return calculationof each proposed feeder road investment was based on household surveys, road areasecondary information, and a cross-sectional study conducted in four zones for phase-i andnine road areas for phase-2 feeder roads among households in accessible and inaccessiblefeeder road corridors.

7. From these data, the stimulus attributable to improved access was inferred.This stimulus was obtained by considering data on average per household outputs obtainedfrom some 2,700 households along both accessible and inaccessible corridors and controllingfor different farm and family sizes. The stimulus attributable to improved access variesconsiderably according to crop and road area.

B. Data Input and Assumptions

S. Detailed household data from a total of 2,700 households in about 54 feederroad corridors and other data from each of the selected corridors were collected for phases-Iand -2. The household data were analyzed controlling for variations in areas cultivated andhousehold size to estimate the differences in production of major crops between accessible andinaccessible corridors. Additional data from an estimated 1,200 households along 24 feederroad corridors will be collected for roads still to be pre-selected for phase-3. The followingdata for the zone of influence of each road corridor (defined to include a band of 3 kilometerson each side of the road) were collected for phases-I and -2:

- 154 -


(a) population data using census and other data from district assemblies (at thevillage level);

(b) regional and road area level production data for each of the main crops,average areas cultivated and costs of production from the road areaagricultural offices and the Policy Planning, Monitoring and EvaluationDepartment of the MA;

(c) household level data on areas cultivated on major crops, production, storage,losses, sales, consumption, mode of transport, average trip distances, andinformation on modal split (e.g. intermediate means of transport, vehicles andheadloading).

9. For the economic appraisal, the "without" project situation assumes that DFRwill not be able to rehabilitate and maintain the selected project roads due to an assumed lackof financial resources. The "with" project situation assumes full rehabilitation andmaintenance of these feeder roads over a 15 year analysis period, using the resourcesprovided by IDA, cofinanciers and GOG. For the anticipated benefits to be realized duringthe life of the feeder roads, adequate resources are assumed to be allocated for both routineand periodic maintenance activities.

10. Economic returns are calculated using border prices of both cost and benefitstreams. Border prices consist of estimated import prices of all foreign inputs estimated atc.i.f. prices, excluding taxes but including internal transport costs. Local components areconverted to border prices using a conversion factor of 0.93. An exchange rate of Cedis 375= $1 is used and kept constant over the period of analysis. All prices relate to mid-1991.Economic costs exclude price contingencies but include physical contingencies of 10 percent.

11. The two principal benefits are (i) increased value added arising from farmer'sability to produce and market more, and (ii) reductions in transport costs. The calculation ofbenefits emphasizes the impact of improved accessibility and does not consider possiblechanges in the rate of population growth as a result of better access.

12. Quantity and value added for the major exportable crops in each corridor wascalculated based on household data collected on quantity produced, consumed, sold and lost ininaccessible (QJ) and accessible (Q) corridors. The results from a cross-sectional studyindicate that on average production is 20 percent higher in households in accessible corridorsthan in inaccessible corridors. The difference between means for the major crops in eachcorridor was statistically significant and corroborated findings in similar studies elsewhere.

13. Average output figures for the road corridors were converted to a value basisusing average sales, consumption and loss data, as well as farmgate prices in accessible andinaccessible corridors (Pl and P2, respectively).

- 155 -

Annex S-1Page 4 of S

14. The increases in economic cost of producing the main crops in the accessibleand inaccessible corridors (Cl and C2, ,peib) were calculated as a function of the gross valueof production for each crop less direct expenses (i.e. variable cost).

15. Average fares for transporting one ton of exportable surplus over the feederroad were obtained for inaccessible corridors (F,) and accessible corridors (F2) in each areafrom the survey.

16. The economic costs of transportation according to the mode used wereestimated separately for the inaccessible corridors (K,) and accessible corridors (K2). In thecase of vehicles, vehicle operating costs for different road conditions were compiled from datagathered by GHA.

17. The anticipated shifts in modes for produce evaluation were estimated bysimply comparing the pattern of modes used in hauling marketable surplus in the inaccessibleand accessible areas. Based on empirical evidence it was assumed that a proportion of theexportable produce or surplus will still be headloaded from farm to market even after roadrehabilitation. When a road improvement results in better access (e.g. as it passes from"poor" to "good" access), there is a reduction of 15 percent in ton-km headloaded, while only10 percent reduction when the road passes from "fair" to ngood".

C. Results

18. The above methodology was followed in assessing the economic viability offeeder roads selected for phases-i and-2 of the NFRRMP. Of 800 km evaluated for phase-i,560 km of feeder roads resulted in ERR above 10 percent. For phase-2, 1,140 km out of1,920 km of feeder roads evaluated have ERRs in excess of 10 percent. For the NFRRMPphase-3 feeder road rehabilitation works, additional cross-sectional data will be collected froman estimated 1,200 households along 24 road corridors in 8 additional road areas.

19. Annex 5-1, Table 6 shows a sample of the format used in calculating eachroad's ERR. The economic rates of return calculated for each of the individual road linksconsidered under phases-i and -2 are included in Annex 5-2, Tables 1 and 2, respectively.Out of the 66 individual feeder road links analyzed for phase-i, 42 (or about 65 percent) witha total length of 560 km were considered to be economically viable with economic rates ofreturn in excess of the 10 percent. For phase-2, 121 out of 206 individual feeder roads with atotal length of 1,140 km are economically viable. The rates of return on the selected roadsrange from 10 percent to well above 100 percent.

20. Annex 5-2, Tables 1 and 2 also show the various feeder road links with ratesof return below 10 percent. Most of these feeder roads are quite long and therefore have highrehabilitation cost compared to the expected benefits in the form of increased value added andbenefits accruing to transporters.

21. Annex 5-1, Table 1 summarizes all ERRs that were calculated including theresults of a sensitivity analysis of different project components and the project as a whole.Annex 5-1, Tables 2 to 5 gives the results of ERR calculations for phase-i (560 km), phase-2

- 156 -


(1,140 kn) and phase-3 (800 km) (estimated) feeder road rehabilitation works as well as theperiodic maintenance (regravelling) program (2,850 km). Cost-benefit analyses for theremaining 800 km of phase-3 will be conducted soon by local consultants.

AP41NNovember 1991

(EconEval.NFR)

- 157 - Annex 5-1Table 1

SUSUARY OF ERR AND SENSITIVITYAlt Figures in Percentages

ERR withERR with ERR with Costs up 20%

Percent of Total E R R Costs up Benefits down and BenefitsComponents Project Costs Base Case 20% 20% down 20%.......... .................... .......... ..................... ............ .................... w*. ,b..

1. PHASE-1 (1992) 14 47 37 35 27Feeder RoadRehabilitationProgram (S60 kmselected and designed)

2. PHASE-2 (1993-1994) 22 47 37 34 26Feeder RoadRehabilitationProgram (1,140 kmselected andto be designed)

3. PHASE-3 (1995-1996) 15 42 34 32 25Feeder RoadRehabilitationProgram (800 kmto be selected andto be designed)

4. Feeder Road Periodi 25 83 56 51 33Maintenance Program(2,850 km to be selectedand to be designed)

5. Components with Ben 24 -- -- -- --

not quantified

6. Coposite ERR on 36 47 37 35 26Items and 2

7. Conposite ERR on 51 45 36 34 26Items I to 3

8. Coqnosfte ERR on 76 58 42 39 28Items I to 4

9. Composite ERR on 100 44 32 30 21Items 1 to 5Total Project

- 158 - Annex 5-1Tabl e2

REPUBLIC OF GHANA


ECONOMIC RATES OF RETURN OF PHASE-1 (560 KM) FEEDER ROAD REHABILITATITION PROGRAM(IN CEDIS)

......... .. .... ... ................... ................................. ........................................................................

PERIODIC ANDROUTINE

REHABILITATION MAINTENANCE TOTAL BENEFITS TO BENEFITS TO TOTALCOSTS COSTS COSTS FARMERS TRANSPORTER BENEFITS NET FLOW

YEAR 1 1,888,844,173 61,692,852 1,950,537,025 329,262,862 64,619,220 393,882,082 (1,556.654,943)YEAR 2 834,930,210 62,340,132 897,270,342 666,337,045 68,601,850 734,938,895 (162,331,447)YEAR 3 62,340,132 62,340,132 1,003,411,228 72,458,131 1,075,869,359 1,013,529,227YEAR 4 62,340,132 62,340,132 1,340,485,410 76,314,413 1,416,799,823 1,354,459,691YEAR 5 62,340,132 62,340,132 1,348,296,731 76,360,827 1,424,657,558 1,362,317,426YEAR 6 122,790,132 122,790,132 1,348,296,731 76,360,827 1,424,657,558 1,301,867,426YEAR 7 1,153,857,882 1,153,857,882 1,348,296,731 76,360,827 1,424,657,558 270,799,676YEAR 8 75,82S,132 75,825,132 1,348,296,731 76,360,827 1,424,657,558 1,348,832,426YEAR 9 62,340,132 62,340,132 1,348,296,731 76,360,827 1,424,657,558 1,362,317,426YEAR 10 62,340,132 62,340,132 1,348,296,731 76,360,827 1,424,657,558 1,362,317,426YEAR 11 122,790,132 122,790,132 1,348,296,731 76,360,827 1,424,657,558 1,301,867,426YEAR 12 62,340,132 62,340,132 1,348,296,731 76,360,827 1,424.657,558 1,362.317,426YEAR 13 1,153,857,882 1,153,857,882 1,348,296,731 76,360,827 1,424,657,558 270,799,676YEAR 14 75,825,132 75,825,132 1,348,296,731 76,360,827 1,424,657,558 1,348,832,426YEAR 15 62,340,132 62,340,132 1,348,296,731 76,360,827 1,424,657,558 1,362,317,426

ERR (IN X) e 47

- 159 -Annex 5-1

Table 3

REPUBLIC OF GHANA


ECONOMIC RATES OF RETURN OF PHASE-2 (1,140 KM) FEEDER ROAD REHABILITATION PROGRAM(IN CEDIS)

......... ".... ...._.................. ....... .......................... ........................ .......................................................

PERIODIC ANDROUTINE

REHABILITATION MAINTENANCE TOTAL BENEFITS TO BENEFITS TO TOTALCOSTS COSTS COSTS FARMERS TRANSPORTERS BENEFITS NET FLOW

. ........................... .............................................................. ............ ................... ..... .........................

YEAR 1YEAR 2 2,608,530,919 143,044,120 2,751,575,039 515,654,761 76,861,146 592,515,906 (2,159,059,133)YEAR 3 2,608,530,919 143,044,120 2,751,575,039 1,031,309,521 118,026,111 1,149,335,632 (1,602,239,407)YEAR 4 0 143,044,120 143,044,120 1,79,604,765 125,196,065 1,918,800,830 1,775,756,710YEAR 5 0 143,044,120 143,044,120 2,555,900,008 132,711,553 2,688,611,561 2,54S,567,441YEAR 6 0 143,044,120 143,044,120 3,049,180,973 137,549,631 3,186,730,604 3,043,686,484YEAR 7 0 1,176,049,380 1,176,049,380 3,052,020,987 137,563,698 3,189,584,685 2,013,535,305YEAR 8 0 2,460,862,120 2,460,862,120 3,054,972,732 137,578,339 3,192,551,071 731,688,951YEAR 9 0 143,044,120 143,044,120 3,058,040,720 137,593,579 3,195,634,299 3,052,590,179YEAR 10 0 143,044,120 143,044,120 3,061,229,650 137,609,442 3,198,839,092 3,055,794,972YEAR 11 0 143,044,120 143,044,120 3,064,544,414 137,625,955 3,202,170,369 3,059,126,249YEAR 12 0 143,044,120 143,044,120 3,067,990,111 137,643,144 3,205,633,255 3,062,589,135YEAR 13 0 143,044,120 143,044,120 3,071,572,048 137,661,037 3,209,233,085 3,066,188,965YEAR 14 0 3,493,867,380 3,493,867,380 3,075,295,755 137,679,665 3,212,975,420 (280,891,960)YEAR 15 0 143,044,120 143,044,120 3,079,166,991 137,699,059 3,216,866,050 3,073,821,930YEAR 16 0 143,044,120 143,044,120 3,083,191,755 137,719,251 3,220,911,006 3,077,866,886

ERR (IN X) * 47

- 160 -

Annex 5-1Table 4

REPUBLIC OF GHANA


ECON01MC RATES OF RETURN OF PHASE-3 (800 KM) FEEDER ROAD REHABILITATION PROGRAM(IN CEDIS)

............. ........................... ........ ................ .. ...... ......... . ........... .. . ... ....... ........... ...

PERIODIC ANDROUTINE

REHABILITATION MAINTENANCE TOTAL BENEFITS TO BENEFITS TO TOTALCOSTS COSTS COSTS FARMERS TRANSPORTERS BENEFITS NET FLOW

YEAR 1YEAR 2 1,404,000,000 31,500,000 1,435,500,000 99,187,200 47,232,000 295,200,000 (1,140,300,000)YEAR 3 1,638,000,000 68,250,000 1,706,250,000 248,169,600 73,860,000 738,600,000 (967,650,000)YEAR 4 1,638,000,000 105,000,000 1,743,000,000 270,438,336 56,341,320 804,876,000 (938,124,000)YEAR 5 105,000,000 105,000,000 635,241,600 94,530,000 1,890,600,000 1,785,600,000YEAR 6 105,00C,000 105,000,000 779,637,600 116,017,500 2,320,350,000 2,215,350,000YEAR 7 105,000,000 105,000,000 767,541,600 114,217,500 2,284,350,000 2,179,350,000YEAR 8 703,500,000 703,500,000 854,784,000 127,200,000 2,544,000,000 1,840,500,000YEAR 9 803,250,000 803,250,000 854,784,000 127,200,000 2,544,000,000 1,740,750,000YEAR 10 803,250,000 803,250,000 854,784,000 127,200,000 2,544,000,000 1,740,750,000YEAR 11 105,000,000 105,000,000 854,784,000 127,200,000 2,544,000,000 2,439,000,000YEAR 12 105,000,000 105,000,000 854,784,000 127,200,000 2,544,000,000 2,439,000,000YEAR 13 105,000,000 105,000,000 854,784,000 127,200,000 2,544,000,000 2,439,000,000YEAR 14 703,500,000 703,500,000 854,784,000 127,200,000 2,544,000,000 1,840,500,000YEAR 15 803,250,000 803,250,000 854,784,000 127,200,000 2,544,000,000 1,740,750,000YEAR 16 803,250,000 803,250,000 854,784,000 127,200,000 2,544,000,000 1,740,750,000

ERR (IN X) = 42

- 161 -Annex 5-1

Table 5

REPUBLIC OF GHANA


ECONOMIC RATES OF RETURN OF PERIODIC MAINTENANCE (2,850 KM) FEEDER ROAD PROGRAM(IN CEDIS)

............................... ...................................................................... ... .... ... ................ ....... .

PERIODIC ROUTINEMAINTENANCE MAINTENANCE TOTAL BENEFITS TO BENEFITS TO TOTAL

COSTS COSTS COSTS FARMERS TRANSPORTER BENEFITS NET FLOW

................ 1..9........ .6......0. ---- 5.......6............---........0............0..., .... 0.. 6..7..5.0.0. 6.1. .1. . 5"0......1.. .......... 0. ... 00.............0..1....5 0

YEAR t 1,932,656,250 527,625,000 2,460,281,250 1,170,637,500 61,612,500 1,232,250,000 (1,228,031,250)YEAR 2 1,932,656,250 912,000,000 2,844,656,250 2,341,275,000 123,225,000 2,464,500,000 (380,156,250)YEAR 3 1,932,656,250 912,000,000 2,844,656,250 3,511,912,500 184,837,500 3,696,750,000 852,093,750YEAR 4 1,932,656,250 527,625,000 2,460,281,250 4,682,550,000 345,030,000 4,929,000,000 2,468,718,750YEAR 5 527,625,000 527,625,000 4,682,550,000 246,450,000 4,929,000,000 4,401,375,000YEAR 6 527,625,000 527,625,000 4,682,550,000 246,450,000 4,929,000,000 4,401,375,000YEAR 7 527,625,000 527,625,000 4,682,550,000 246,450,000 4,929,000,000 4,401,375,000YEAR 8 527,625,000 527,625,000 4,682,550,000 246,450,000 4,929,000,000 4,401,375,000

ERR IN X)= 83

- 152 -Annex 5-1Table 6

Economic Evaluatioti of Feeder RoadsPART I. Road Information

GENERALRoad ADA FOAH TOTOPEZone 1 ACCRA VOLTA

Length 12,5 KMSAccesibilitr 1 INDEXPopulation 4,600 PERSONS

Ave. Headloading Dist. 1.82 KMS

FINANCIAL COSTS OF PHYSICAL WORKS

Rehabilitation 2,392,000 CEDIS/KMPeriodic 1,300,000 CEDIS/KMRoutine 200,000 CEDIS/KM

FOR SENSITIVITY ANALYSISIncrease in Costs 20%

Reduction in Benefits 20%

PART II. Benefits

ACCRUING TO FARMERS

Situation Without Project (w/o)

Production per Household 3.86 TONS (all crops)volume of Sales 2.5 TONS (all crops)Net Value of Exportable Sur 250,000 CEDIS (at farmgate prices per household)

Total Increases in Value of Exportable Surplus and Production With Project (W/p)(Value added increases for main crops in each area calculated with results from cross-sectionalanalysis to consider changes in accessibility (e.g. poor to good, fair to good))

Per Household T 0 T A LNet Iner. Inc. Prod. Number Net Incr. Inc. Prod.Val. Added Tons of HH Val. Addsd Tons

- Year 1 9,375 0.14 1,022 9,583,333 148- Year 2 18,150 0.29 1,022 19,166,667 296Year 3 28,125 0.43 1,022 28,750,000 444

- Year 4-15 37,500 0.58 1,022 38,333,333 592

ACCRUING TO TRANSPORTERS

Economic Costs w/o w/pVOC Light Goods Veh. 122 69 CEDIS/TON-KN

Headloading 900 900 CEDIS/TON-KM

Fares (Farm to Market)Light Goods Vehicle 150 150 CEDIS/TON-KW

Headloading 2,308 2,308 CEDIS/TON-KM

- 163 -Annex 5-1

Benefits to Transporters Between Farm and Parket Table 6(to account for 15% less headloading when poor to good access, or 10% when fair to good)

Fares Paid Economic Transp. Costs Benefits tow/o w/p w/o w/p Transporters

- Year 1 6,653,057 6,080,153 4,031,662 2,676,292 782,465- Year 2 6,653,057 6,409,193 4,031,662 2,821,126 966,673- Year 3 6,653,057 6,738,234 4,031,662 2,965,959 1,150,880- Year 4-15 6,653,057 7,067,275 4,031,662 3,110,793 1,335,087

PART III. Economic Rate of Return(economic costs)

Economic Costs Benefits to Benefits to NetRehab. Per. I Rout. Farmers Transporters Flow

- Year 1 27,807,000 2,325,000 9,583,333 782,465 (19,766,201)- Year 2 0 2,325,000 19,166,667 966,673 17,808,339- Year 3 2,325,000 28,750,000 1,150,880 27,575,880- Year 4 2,325,000 38,333,333 1,335,087 37,343,421- Year 5 2,325,000 38,333,333 1,335,087 31,343,421- Year 6 17,437,500 38,333,333 1,335,087 22,230,921- Year 7 2,325,000 38,333,333 1,335,087 37,343,421- Year 8 2,325,000 38,333,333 1,335,067 37,343,421- Year 9 2,325,000 38,333,333 1,335,087 37,343,421- Year 10 2,325,000 38,333,333 1,335,087 37,343,421- Year 11 17,437,500 38,333,333 1,335,087 22,230,921- Year 12 2,325,000 38,333,333 1,335,087 37,343,421- Year 13 2,325,000 38,333,333 1,335,087 37,343,421- Year 14 2,325,000 38,333,333 1,335,087 37,343,421- Year 15 2,325,000 38,333,333 1,335,087 37,343,421

NPV 25,279,091 31,511,586 242,389,697 9,209,525 194,808,545

ECONOMIC RATE OF RETURN 121%B/C RATIO 4.4

PART IV. SENSITIVITY ANALYSIS PercentChange ERR

Considering:- Increase in Costs 20% 94%- Reduction in Benefits 20% 89%- Inc. Costs and Red. Benefits As Above 70%

a H - H~~~~: E ---

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He H... *. *. Ce ~ ~~~~ .. .. .. ... .. .H 0 H ine------------- ----------e .n on.e . as am.a Oa e oc c a *e ---- c-0 -M- * ----- m.cs-0-- ,1).cee.4

- 165 -

Listing of Phase 2 (1,140 km) Feeder Roads

ANNEX 5-2Table 2

NPV COSTS NPV BENEFITSLENGTH RENR MIhT. M6RIC. TRAMSP. 8/C

m N Wl (RN) POP. (0'OOO) (0'000) (W'OOO) (0'O0) ERR RATIO

ROAD DISTRICT: CAPE COAST

1 O8OSOIASI-FANTI NYANKOHASI 1.65 5.628 3,613,364 914,458 142,717,919 120,804 222% 3) 52 DOIINASE JN-DONINASE 2.40 2,015 6,485,740 7,492,054 74,780,552 81,274 85% '.43 FOSUANSA-ANANDOR 5.00 3,438 15.875,455 3,704.161 156,001,718 190,724 77% :.04 ODUNASE-A8AKAANPA 6.40 4,131 12,828,609 4,535,989 107,080,402 95,955 67% 6.25 NO.9 VILLAGE JN-NO.9 VILLAGE 1.95 779 5,726.636 1,105,647 38,830,416 186,301 59% 5.76 JANAA-ADDADAN 9.20 2,186 24,208,182 5,216,388 158,683,632 858,567 57% 5.47 ASSIN AFAN JN-ASSIN AFFAW 5.20 3,021 21,375,491 19,510,107 124,580,724 68,580 49% 3.08 JUNKWA-KRO08 6.60 3,214 13,001,400 24,807,743 85,446,335 181,801 49% 2.39 NYANEANI JN-NYANEANI 1.80 489 2,399,727 1,020,598 12,777,022 6,018 46% 3.710 ASEBU JN-NYANEDON-ASOMDWEE 17.50 8,464 23,779,996 65,620,075 161,678,578 15,919 45% 1.811 ASIKUNA-A8UAKWA 5.00 3,781 9,021,036 3,543,742 44,767,219 4,723 44% , 3.612 ANDOE-ADADIETAN 6.90 5,615 18,441,636 25,022,209 100,678,578 5,040 44% 2.313 APERADE-ANANFUPONS 11.20 2,010 17,956,636 7,937,981 83,825,455 21,475 41% 3.214 JUKWA-NATRESO 3.70 483 5,931,364 2,097,895 24,783,992 202,754 39% 3.115 EFJTU-ANKAASE JN 7.00 6,668 66,729,636 66,223,821 303,732,079 24,522 38% 2.316 EWURABO JN-EWURABO 1.30 520 4,144,500 4,057,889 16,640,940 21,276 34S 2.017 NYANEDON-NENSUKNA 5.20 2,550 13,091,336 16,232,783 48,843,919 34,844 29% 1.718 OLD EBU-ABUENU 3.60 963 5,836,509 2,039,812 17,583,949 92,151 29% 2.219 APOLININGO-APOLINGO JN 10.00 1,600 14,908,336 5,667,705 45,387,308 42,322 28% 2.220 ASURA-WIANGA 4.30 1,309 9,264,545 3,047,618 25,891.611 4,651 27% 2.121 JABOUR-ANKAASE 12.60 4,483 55,153,818 41,540,286 146,503,015 24,522 22% 1.522 PAPADJAN JN-TSETSEKASINU 3.40 584 7,301,936 2,406,287 16,063,481 85,817 21% 1.723 8ANTANA-ESSANAN JN 5.30 3,236 7,708,000 21,853,810 31,045,809 5,962 141 1.124 ADADIETAM-EDUBIASE 22.30 7,898 62,697,091 85,674,924 149,210,775 33,78S 11% 1.0

Sub-TotAl 159.50 75,065

1 TONFOKRO-FRAI S 4.80 1,801 22,757,333 18,009,518 38,234,493 79,835 8% 0.92 AKOARUSA-ANISAIUW 1.70 532 3,405,455 1,204,872 3,943,567 7,000 7% 0.83 BRE8IA-E8U JN - 5.50 1,394 13,231,482 17,169,290 25,460,093 25,488 2% 0.84 UROFOYEDUA-hAIIEN 27.20 1,843 79,352,364 120,085,863 103,271,715 179,409 -53% 0.55 AFRANGUA JN-AYELDU 16.80 1,986 15,802,818 74,170,680 50,544,196 38,756 -63% 0.66 EQUASI-EKROFUL JN 9.50 1,200 17,326,482 35,643,383 21,637,793 10,227 -67% 0.47 A8URANSA-KAFODZIDZI 5.40 1,031 21,842,245 20,262,089 9,963,793 9,710 -73% 0.28 KAKOnDO JN-ASE8U JN 15.80 1,600 41,928,718 59,285,373 28,850,391 12,190 -73% 0.3

Sub-Total 86.70 11,387

--- - .-- -,- . -..-- -.- -- --- -..-- --.-- -- --- --- --..- -.--- --.-- -- --- -.-.- -..-- -.--- --

- 166 -

ANNEX 5-2Table 2

NPV COSTS KW SEIEFITSLEH6TH REKM MINT. AGRIC. TUNISF. S/C

WAD NNE (RN) POP. (4000) (*'000) (4tOO0) (4'000) Ell RATIO

ROAD DISTRICT: 8EKWAI

1 APONYASE JN-APONYASE 4.00 2,216 8,328,273 2,834,993 98,295,096 340,434 88t 8.82 SENFI-BROSANKO 4.00 2.119 9,333,455 2,267,995 73,291,240 184,472 65% 6.33 HOSEASO-ADUAGYKRON 10.50 2,922 14,756,909 7,430,884 110,446,488 310,753 60% 5.04 WURUYIE-KOTWA 8.00 3,404 17,956,373 25,703,816 104,280,347 982,913 46% 2.45 KUtPESE JN-KANIA6O 9.90 4,612 19,542,473 7,016,608 73,350,081 18,178 35% 2.86 AGYENKWASO-NSUAYEN 17.20 7,171 44,971,318 53,693,052 187,184,154 861,636 34% 1.97 AHENSAN-KYEABOSo 18.90 5,213 44,084,909 58,999,923 187,289,924 299,275 33% 1.88 SENFI-TWENEASE 4.00 3,096 18,018,091 50,805,579 106,810,390 207,858 30t 1.69 ABODOH-ANKAASE-APAU 16.30 6,607 24,474,818 56,650,730 118,288,510 241,515 30% , 1.510 FOIENA-AYAASE 2.70 496 6,152,273 1,913,620 17,095,429 76,813 27% 2.111 NANSO AKROPONG-ADUNAN . 7.20 1,127 14,203,182 5,102,988 37,572,i81 172,729 25t 2.012 HERIDANI-APENIIADI 13.30 3,076 40,325,709 9,426,353 96,432,624 3,027,198 25% 2.013 NENANG-DOTON 10.00 3,812 24,894,545 5,669,987 44,198,476 700,667 18% 1.514 SUNTAESU RD JN-NTOBROSO 2.70 1,441 4,149,182 1,530,205 7,270,679 4,532 15% 1.315 JUAPEASE JN-SUWRISO 3.70 184 5,476,373 2,097,898 7,595,531 315,874 11% 1.0

Sub-Total 105.90 36,835

I ABORE-JENINSO 4.50 1,901 9,269,000 3,188,123 11,603,710 17,787 9% 0.92 NANSO NIN-KUWPESE JN 13.60 4,803 38,846,827 42,454,971 76,456,110 40,156 8% 0.93 8OJAWE-HOMASE 9.30 4,823 31,110,909 29,031,708 47,421,404 6,363 2% 0.84 FUNSO-ABOABO NO.1 17.30 942 32,291,909 12,261,346 28,563,156 335,008 2% 0.6S BEKrERE JN-BEKYERE 1.20 92 2,819,364 680,398 1,179,152 52,773 -8% 0.46 ANYASO JN-ANASO 11.20 579 34,557,818 7,934,800 13,251,975 424,270 -9% 0.37 SUBIN CANP-ANWIUIA 5.00 400 13,116,636 2,834,993 4,671,081 178,679 -10% 0.38 APENINADI-DA _ 12.00 989 39,300,273 37,457,199 17,059,214 3,017,234 -71% 0.39 ANTOAKRON-PAIf-(TfMDE) 22.00 523 31,485,273 97,128,271 23,955,652 53,883 -90% 0.210 8EKWAI-JACOSU Ji 17.75 3,476 18,009,236 68,441,835 14,124,992 185,066 -90% 0.2

Sub-Total 113.85 18,528

…--- --------- -

- 167 -

ANNEX 5-2Table 2

NPV COSTS m OsE TSLEHCTN EMNR HINT. mUIC. T111. 8/C

mm0 WE (aN) POP. (4'000) ( '000) (¢0OO0) (0000) En RATIO

ROAD DISTRICT: HAtPONG

I AKROFUSO-APPAH 8.70 4,816 20,520,545 32,644,477 427,542,039 336,041 133t 8.02 APAAH-KYEKYEWERE 1.70 1,049 4,347,945 1,204,872 81,888,092 85,840 125t 14.83 ASONOCAS0-80NWIRE 6.90 5,721 5,289,455 4,890,363 62,838,147 7,081 82% 6.24 DOII-EJURA 21.80 3,096 26,846,273 15,450,713 126,379,574 151,274 40t 3.05 ANKAASE-SWEDRU 8.40 5,369 15,807,727 31,518,806 85,282,828 6,174 38% 1.86 NORASO-SEKRUWA 2.70 551 1,958,545 8,428,560 13,993,722 104,903 38% 1.47 ASOKORE JN-AHENSAN 10.20 3,165 12,319,764 38,272,835 73,063,329 9,389 35% 1.48 ANOAKO-AGONA-EFFIDUASE 31.2S 7,440 85,545,664 115,5671,070 283,675,181 590,201 24t 1.49 PEOASE 25.45 3,997 61,022,273 112,359,750 210233563 4462476 20t 1.210 ANKANADUA-A8OTREYE-NANTWEWOSE 7.70 1,269 8,512,636 3,233,967 14,882,582 634,545 16% , 1.311 AFRAANSO-ANYNOFI 47.50 3,4179 83,195,945 33,665,545 146,572,249 1,032,922 15% 1.312 SWEDRU-FANODE-IANPONITENIE-AHODNO 13.80 6,027 30,184,909 56,353,405 93,472,327 6,516 14% 1.1

Sub-Total 186.10 45,979

I KNANANS -DUAPORUKO 5.00 2,000 12,847,673 2,834,993 8,625,318 20,071 0% 0.62 ASOKORE JN-SINNA 8.00 1,103 25,220,909 35,319,371 218,069,038 32,436 -1% 0.83 AGONA-ADUKRO-SUKO 16.50 3,197 30,318,091 11,694,347 23,345,197 10,385 -1% 0.64 JEDIAKO-DROSONSO 12.15 174 19,507,545 6,889,034 11,737,716 1,766,018 -3% 0.55 ABIREN-ASOVONASO 9.30 2,357 28,657,355 52,096,073 58,599,505 53,273 -27t 0.76 *OSONCHECHE-SONIUSA 7.75 1,302 4,594,364 28,104,655 22,171,472 13,843 -57% 0.77 8EPOA JN-A6ONA 4.80 745 14,426,545 21,191,623 5,626,047 15,182 -88% 0.28 TETREN JN-BEPOASE-WIANOASE 14.70 986 46,998,936 64,899,345 16,334,529 235,315 -89% 0.19 VIANOASE-TETREN 10.60 116 27,694,091 39,770,539 7,446,166 193,939 -98% 0.1

Sub-Total 88.80 11,980

- -- - -- - -- - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - -

- 168 -

ANNEX 5-2Table 2

Nm CeOss WV UEITSLENGTH mm Min. AGIC. TRN. 3/C

flNIUE (RN) PO. (*'O00) (0'°°°) (e'00O) (¢'000) EI llNTO

ROAD DISTRICT: SUNYANI

1 SUNUNA-PONAKRON 10.50 2,634 15,667,818 7,441,857 623,015,092 4,682,204 223% 27.22 GOAN CANP-GOATIFI 1.60 866 5,419,700 907,198 137,711,639 319,018 159% 21.803 SUSANNO-SANTAASE 13.90 1,458 16,515,900 43,391,478 89,702,199 1,846,215 35t 1.504 NIN-NONTWI 12.00 500 32,867,027 8,504,980 78,692,365 1,320,136 24% 1.905 SANKORE-NKAVIE 8.50 363 14,167,682 3,118,493 30,041,453 1,214,251 22% 1.806 NANSIN-AHVEREWAN 12.00 2,718 16,978,647 8,501,592 40,058,820 14,406 20% 1.607 DUAYAV NKWANTA-WONAH-DNENASE 20.70 2,135 43,193,455 14,671,090 88,322,774 1,707,352 19t 1.608 BUKRU-KRUWA-AKOKOAMAN 3.90 546 8,629,564 2,211,295 16,725,418 195,230 19% 1.609 KENYASI NO.1-KHAHU 15.30 289 23,262,455 10,843,849 45,903,880 2,581,393 18% 1.4010 NKASIEN-ASUBINA 4.80 595 13,006,442 2,721,594 17,605,195 188,985 12% 1.1011 NYANE8EKYERE NO.2 JN-NYAAEIEKYERE 2.90 121 8,391,436 2,054,540 10,813,447 46,135 11% 1.0012 NEHAHE JN-NOUEKAW 33.00 5,564 67,619,273 123,823,819 191,397,780 250,782 10t 1.00

. ..... ----

Sub-Total 139.10 17,789

I KUSAWUDIE-GANBIA NO.1 19.00 962 25,712,864 13,466,218 36,063,057 191,157 8t 0.902 AYONSO-8EREKIUH 20.80 764 20,183,909 14,741,965 26,230,236 89,481 3% 0.803 WAHAHENSO-BARNIE 6.70 998 11,659,955 20,915,317 18,333,353 179,665 -52% 0.604 KOKOFU JN-KWANE PUA 19.40 1,621 68,895,055 72,793,432 60,843,554 724,346 -54% 0.405 SECHEN-SRENI 6.30 664 21,185,455 23,637,201 9,896,398 25,587 -77% 0.20

Sub-Total 72.20 5,009

-- - -- - -- - - -- - -- - -- - - -- - -- - -- - - -- . -. . -- - -- -.- - -- - -- - -- - - -- - -- - -

- 169 -

ANNEX 5-2Table 2

MN CUSTS NH EIEfITSLENGTH EIEm MINT. R6IC. TV1"SF. liC

WA NHE (IN) P0. (t'°00) (¢'OO) ($'000) ($'000) En ITIO

ROAD DISTRICT: TECHINAN

I JENA-ANANTEN 4.00 3,777 55,100,000 406,000,000 58,300,000 99% 8.432 SRAPEKRON-NIFRAHFADWENU 1.20 1,085 14,200,000 85,700,000 600,000 78% 6.083 YANKYERA-BAEDI NO.2 2.20 1,435 29,500,000 154,200,000 22,100,000 77% 5.98

; 4 TANO8OASE-KRANKA-YEFRI 15.30 6,291 188,700,000 676,200,000 97,100,000 58% 4.09! 5 JENA-ANPONA 4.00 5,598 42,400,000 152,400,000 1,400,000 54% 3.63

6 FAANA-AGOSA-AKROFUON 7.00 3,860 96,400,000 292,600,000 53,100,000 51% 3.597 NSUTA-GYANKRON 5.40 1,880 70,000,000 198,900,000 30,300,000 47% 3.278 DROSOSO-TADIESO 4.40 1,704 60,600,000 147,100,000 26,400,000 42% 2.869 ASANPANAYE-NPEI-ASUOSO 4.20 1,267 56,000,000 136,200,000 19,600,000 40% 2.7810 NKWAESO JN-NIMAESO 1.40 500 17,800,000 37,800,000 6,900,000 38% .2.5111 NSUTA-SERESO 4.70 1,575 54,500,000 124,400,000 900,000 35t 2.3012 TECHINAN-TRAA 5.00 1,135 63,500,000 120,100,000 18,300,000 32% 2.1813 OSUNASI-TINIE8U 5.00 1,357 58,000,000 1U8,900,000 700,000 28% 1.8914 BONSU-DOTO8AA-AGYEIKRON 8.80 2,171 120,400,000 233,300,000 3,300,000 28% 1.9615 TANOSO-ASUDROFO 6.70 2,015 89,900,000 159,200,000 1,100,000 25t 1.7816 ASEKYE-TON (NKWATEDE) 7.20 2,235 83,500,000 133,300,000 900,000 23% 1.6117 BOASE JN-BOASE 4.40 916 60,600,000 79,100,000 14,200,000 21% 1.5418 NNOASE-NEHIRAA 12.60 2,586 173,600,000 223,300,000 40,000,000 21% 1.5219 ASANTAN80 NKWANTA-ASANTANSO 6.20 1,139 73,400,000 90,000,000 600,000 16% 1.2320 8RAHOHO-NSUNESA-DONPOASE 24.00 4,318 330,600,000 344,900,000 49,500,000 14% 1.1921 NKOSIA-NFRARESU 3.00 1,652 31,800,000 35,100,000 400,000 14% 1.1522 NAKYINNA8RE-ANAWA-YEREPENSO 17.70 1,974 243,800,000 212,200,000 30,500,000 10% 1.00

Sub-Total 154.40 50,470

1 NAANPHIA-DENTEKU 3.50 1,313 37,100,000 35,200,000 300,000 9% 0.952 AFREFRESO-IEN 7.80 850 98,500,000 68,700,000 10,700,000 4% 0.813 NTANKORO-NTANUJW 4.70 320 61,300,000 24,400,000 4,900,000 -2n 0.644 OLD LONGORN- WLOM 19.00 1,265 261,700,000 136,000,000 19,500,000 -3t 0.595 NNOASE JN-31 SE 8.20 2,606 86,900,000 57,000,000 0 -4% 0.01

Sub-Total 43.20 6,354

.... ..... _ ....- -- -- -- -- -- -- -- -- -- - -- -- -- -- -- -- -- -- -- - -- -- -- -- -- -- -- -- -

-170 -

ANNEX 5-2Table 2

NPV COSTS NPV BENEFITSLENGTH KEHMS HINT. ACRIC. TRISSP. 8/C

10S mmZE (SN) POP. (W'OO0) (¢'000) (¢'000) (0'000) ERI RATIO

ROAD DISTRICT: HOHOE

1 OSRAHANI JN-OSRAHANI 1.60 2,145 8.7 551.0 3.4 198% 67.002 NEW AYONA-DZOLU 5.00 2,863 27.8 88.9 1.9 101% 3.203 8ONWIRE JN-8ONWIRE ANANFRO 2.80 2,361 181.0 53.9 2.8 73% 3.104 KWAIEKROM-OKADJAKRON 21.00 6,700 110.2 153.0 3.8 48% 1.405 APESOKU8I-TAKRABE 5.00 3,226 53.0 147.3 3.1 44% 2.806 OHIANANKYENE JN-OHIANANKYENE 7.00 1,776 37.4 45.6 2.8 38% 1.307 BANDA-8ORA AHENFI 7.00 6,825 84.3 186.5 21.5 37% 2.408 TAPAABOTOASE-4TONKORGUAMAN 15.00 4,004 78.7 91.4 2.3 32% 1.109 DOSVEKOFE-TAPAANANYA 3.80 1,713 40.2 76.3 1.6 30t 1.9010 lOl010 KUNASI-LIKPENATE 11.00 4,145 70.0 96.8 0.6 29% 1.3011 ASATO-APESOKU8I 5.50 3,176 75.8 145.1 3.1 28% 0,5012 LIKPENATE-DZOLU 10.00 4,677 119.0 213.1 4.5 27% 1.8013 KPENE-TAYI 5.00 2,609 68.9 125.2 2.6 26% 1.8014 BODADA-KUTE 16.00 6,872 194.2 306.2 6.5 23% 1.6015 FIAFE-DAFOR ' 00 2,483 42.1 58.0 1.0 22% 1.4016 KUNDA-ADUNADIN 1.80 868 19.0 23.7 2.7 20% 1.3017 8REHANIASE-PUSUPU 9.40 2,419 49.2 49.60 1.30 16% 1.0018 AKPAFU-NENPEASEN-TODZI 3.50 2,207 42.2 51.50 1.10 16% 1.2019 DZOLU-KUTE 14.60 4,885 187.0 222.60 4.70 15t 1.2020 SOKPO JN-NEH AYONA 5.00 3,343 61.8 68.70 1.43 13% 1.1021 DODI PAPASE JN-A40Q0A 22.00 5,727 243.9 261.60 5.50 13% 1.00

Sub-Total 177.00 75,024

1 K#AKU-KPETSU-BATOB 6.50 1,999 68.80 513.00 0.32 3% 0.702 AKANIAN-SEJANSr J 15.00 3,324 206.60 909.00 10.70 -10% 0.493 ARUBE JN-BATOI 13.-0 1,999 137.70 68.30 7.90 -12% 0.504 NKWATA-SHARE 7.50 1,423 88.90 38.80 0.80 -20% 0.405 NONKRA-TNERES 5.00 488 60.70 14.60 1.70 -57% 0.206 ABUDJURO-DADEFRO 34.00 251 53.00 12.00 0.10 -67t 0.207 DJIG6E JN-DJI6BE 6.40 226 67.80 10.80 0.20 -76% 0.208 FESI JN-FESI 5.50 191 58.20 9.20 0.20 -76% 0.209 KWEKU-GYAESAYOR 5.00 198 68.90 5.40 0.60 -84% 0.08

Sub-Total 97.90 10,099

-- - . - - - - - - -- - - - - - - - - - - - - - - - - - -- - --.- - - - -. - - - - - - - -- - - - - - - - -

- 17 1 -

ANNEX 5-2Table 2

Nm COSTS NPm 8EEFITSLENGTH REN NAINT. AGRIC. THISP. 8/C

DW N*" (II) POP. (4'000) (¢'000) (¢'°°°) (4'000) EIl RATIO

ROAD DISTRICT: TAMALE

1 YEJI-ABRUNASI 5.50 16,057 63.80 1,268.50 7.50 195t 20.00

2 TOLON SAVELAGU 3.50 37,893 257.60 446.90 2.10 34t 1.743 NAJONG-YUNYO-OUNKURUDU 22.00 10,977 233.00 459.00 0.70 31t 1.97

4 PONG TA"ALE-ZAWGU 15.00 6,366 193.90 293.50 1.60 21% 1.52S NUASIA-JANGA 26.00 6,907 218.70 288.80 0.50 20t 1.326 SAWA8A-ABAUNASI 5.00 1,236 55.20 73.80 0.10 18% 1.347 NANTUGU-IANGBELUNG 23.10 6,533 188.00 227.70 1.40 17S 1.228 LA8ARGA-TU6U 8.00 1,331 67.30 81.80 0.50 17t 1.229 SANKPALA-WANBONG 8.00 1,719 100.70 118.90 0.70 14% 1.1910 TALI-KULI 30.00 6,166 260.50 284.30 1.70 13% ,1.10

Sub-Total 146.10 95,185

I TALI-ZAG6A 10.00 2,034 82.30 70.90 0.10 4% 0.862 KOLOFU JN-KOLOFU 27.40 4,140 436.90 286.30 1.70 -2t 0.663 KPAL8E-CHANAYILI 11.00 1,214 142.50 74.60 0.40 -8% 0.534 YOGU-WUN8U 10.00 1,608 80.50 56.00 0.10 -9% 0.705 GBOORANI JN-GOORNANI 5.00 2,102 39.80 24.80 0.10 -25% 0.606 YAPALA-ZOGOA 48.00 1,926 213.60 100.70 0.20 -71% 0.47

Sub-Total 111.40 13,024

---- ---- --- ---- --- ---- --- ---- ---- --- ---- --- ---- --- ---- --- ---- ---- --- ---- --- ---- --- ---- ---

- 172 -

ANNEX 5-2Table 2

NP- COSTS NPV 6EEFITSLENGTH REHI HAINT. AGRIC. TRANSP. B/C

NM IN! (M) POP. (4'000) (¢0OOO) (¢'00 ) (4'0OO) ElS RATIO

ROAD DISTRICT: TUMU

G 6WOLU-KUSALE 8.80 3,695 74.00 161.30 3.00 40% 2.202 TUHU-KASANA 18.30 7,091 252.10 309.50 6.00 16% 1.35

Sub-Total 27.10 10,786

1 WELLEIBELLE-HALENBOI 16.00 2,870 220.40 125.30 2.40 -4% 0.572 NASUGUDELLE-YUGANTU 10.40 1,354 121.50 59.10 1.10 -14% 0.503 DONOYELE-DJARHA 17.10 1,833 167.10 80.00 1.50 -30% ,0.494 BUGUBELLE-SENTIE-JHANG 12.40 1,824 116.70 34.10 0.10 -63% 0.295 G6OLU-JEFESI 25.60 4,786 144.80 51.90 0.20 -72% 0.35

Sub-Total 81.50 12,667

- 173 -

ANNEX 5-2Table 2

NPV COSTS NPY BENEFITS

LENGTH REHAS MINT. A61iC. TRANiSP. B/C

ROAD NANE (RN) POP. (*000) (O0oo0) (4'000) (f'OOO) ER2 RATIO

ROAD DISTRICT: YENDI

I GULKPEGU-YENDI 6.40 38,853 53.80 346.00 0.50 98% 6.44

2 JAKPA-CHEREPONI 5.70 3,394 47.90 86.60 0.50 32% 1.82

3 KPACHIYILI-ADIBO 2.70 2,754 22.80 133.70 0.10 24% 1.48

Sub-Total 14.80 45,001

I TOLON-DJONAKAYILI 30.00 4,758 388.70 156.90 0.90 -21% 0.41

2 LAANA-KENYANG 4.00 1,501 34.40 184.00 0.00 -34% ,0.50

3 SANG-PALARI 28.60 4,069 331.60 87.80 0.10 -59% 0.27

4 DOG9AN-JINAN 9.00 833 95.30 27.50 0.20 -59% 0.29

5 KYALE-TAfPOYE 10.00 1,126 108.50 23.60 0.00 -68% 0.22

6 SAB00A-WENCHIKI 67.60 8,025 881.90 154.10 1.10 -69% 0.18

7 KPABIA-JEGBUNI 18.00 1,077 247.90 25.80 0.10 -80% 0.10

8 GBNOIRE-WANJOGA 48.00 2,318 604.50 41.80 0.10 -90% 0.07

9 TIKARE-KATARE 30.50 825 256.50 20.50 0.00 -98% 0.08

Sub-Total 245.70 25,332

Total 2,051 566,514

- 174 -

Annex 6-1

REPUBLIC OF GHANA


Documents in the Project File

Project Files

1. Schedule for Processing Procurement and Implementation,October 1991, Department of Feeder Roads and World Bank D57343

2. Institutional Study of the Department of Feeder Roads,October 1990, COWI-Consult, Denmark (P. Taylor). D57344

3. Environmental Impact Assessment, August 1990, AssociatesIn Rural Development, USA (S. McCormick). D57345

4. Local Organization and Finance for Routine Maintenance ofFeeder Roads in Ghana, March 1991, Associates in RuralDevelopment, USA (K. Ellison). D57346

5. Institutional Arrangements for Sustainable Routine Maintenanceof Feeder Roads in Ghana, July 1991, Associates in RuralDevelopment, USA (E. Connerley). D57347

6. Consultancy on the Labour-Based Coimponent, April 1991,International Labour Office, Switzerland (A. Coleman). D57348

7. Socio-Economic Evaluation of Feeder Road Rehabilitation,March 1990, Clive Daniels, UK and Ghanuxim, Ghana. D57349

8. Socio-Economic Evaluation of Selected Feeder Roads, May 1991,Ghanexim Economic Consultants, Ghana. D57350

9. Socio-Economic Evaluation of Selected Feeder Roads, May 1991,Comptran Engineering and Planning Associates, Ghana. D57351

10. The Poverty Alleviation Component, July 1991, United ConsultantsLtd, Ghana. D57352

11. Rural Road Sub-Sector Strategy Paper, June 1991, Department ofFeeder Roads and World Bank. D57353

AF4INNovember 1991

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