Ghana - National Feeder Roads Rehabilitation and Maintenance Project

 ICRR 10281 Report Number : ICRR10281 ICR Review Operations Evaluation Department 1. Project Data : OEDID : OEDID: C2319 Project ID : P000934 Project Name : National Feeder Roads Rehabilitation and Maintenance Project Country : Ghana Sector : Rural Roads L/C Number : C2319-GH Partners involved : Danida, USAID, Japanese Grant Fund, OPEC Prepared by : Binyam Reja, OEDST Reviewed by : Hernan Levy Group Manager : Greg Ingram Date Posted : 03/18/1999 2. Project Objectives, Financing, Costs and Components : The project, supported by a credit of US$ 55 million equivalent, was approved on February 7, 1992, and made effective on July 22, 1992. The credit closed on June 30, 1998 after a one-year extension. A balance of US$ 1.7 million was canceled. The main objectives of the project were to (i) provide improved feeder road access to transport agricultural produce and inputs, (ii) improve mobility and economic opportunity for the rural poor, and (iii) enhance the institutional capacity of the Department of Feeder Roads (DFR). To achieve these objectives, the project comprised (a) civil works component including rehabilitation, regravelling of agriculturally important feeder roads, and construction of culverts and spot improvements; (b) purchase of road maintenance and workshop equipment, tools and spare parts; (c) consultant services for engineering design and supervision; (d) technical assistance and training for DFR; (e) support to the local contracting industry; (f) rural mobility, environment improvements, and assistance to NGOs and women; and (g) DFR decentralization support to develop and test a district -based routine maintenance system . Project Costs : SAR Estimate: US$ 106.0 million; Actual: US$ 102.6 million. IDA's Share : SAR Estimate: US$ 55.0 million, Actual: US$ 54.5 million. Co- : Government of Ghana: US$ 5.8 million, Danida: US$ 20.8 million, USAID: US$ 15.1 million, Co -financing (Actual): Japanese Grant Fund: US$ 2.0 million, OPEC: US$ 4.5 million 3. Achievement of Relevant Objectives : The project successfully achieved its physical objectives . The rehabilitation and maintenance program was carried out largely in accordance with SAR forecasts . Socio-economic impact monitoring study carried out during the implementation of the project suggests that agricultural production increased and became more diversified . The Study also indicates that there was a marked increase in the number commercial transport operators on the rehabilitated roads, providing round -trip services to villagers. The project also substantially improved the institutional capacity of DFR: technical assistance helped DFR improve contract management, road planning and maintenance . The training component was also successfully carried out . The average economic rate of return of the project is 54 percent compared to 36 percent at appraisal, with substantial individual variations . 4. Significant Achievements : Significant achievements of the project are its contribution to improved road maintenance planning and programming, and the promotion of the economic value of maintenance . A Maintenance Performance Budgeting System (MPBS) was introduced and is now operational in five regions, and a reformed road fund is covering most of the maintenance needs. 5. Significant Shortcomings : There are no significant shortcomings . Although some components were not implemented as planned, the outcome of the project was not significantly affected . 6. Ratings : ICR OED Review Reason for Disagreement /Comments Outcome : Satisfactory Satisfactory Institutional Dev .: Partial Substantial The project's contribution to the management and financing of feeder roads warrants a substantial rating on the OED scale. Sustainability : Uncertain Uncertain Bank Performance : Satisfactory Satisfactory Borrower Perf .: Satisfactory Satisfactory Quality of ICR : Satisfactory 7. Lessons of Broad Applicability : The key lessons from this project are (i) significant benefits accrue from low -volume rural roads that are not easily measurable through traditional economic evaluations; (ii) political commitment in the form of a legislation is crucial to establish a Road Fund and secure maintenance funding; and (iii) labor-based method of construction has significant economic and social benefits, and encourages the adoption of appropriate design for low -volume rural roads. 8. Audit Recommended? Yes No Why? The project is being audited together with two other transport projects in Ghana to provide input to the OED Rural Roads Study. 9. Comments on Quality of ICR : The ICR is of satisfactory quality . It provides clear assessment of project implementation experience and identifies useful lessons.