Ghana - Fifth Urban Project

Document of The World Bank Report No: 20143-GH PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 8.1 MILLION (US$ 10.83 MILLION EQUIVALENT) TO THE REPUBLIC OF GHANA FOR AN URBAN 5 PROJECT IN SUPPORT OF THE FIRST PHASE OF THE URBAN DEVELOPMENT PROGRAM March 9, 2000 Water and Urban 2 Country Department 10 Africa Regional Office  CURRENCY EQUIVALENTS (Exchange Rate Effective January 31, 2000) Currency Unit = Cedi (GHC) GHC I= US$ 0 0002849 US$ I = GHC 3,510 00 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS AFD French Aid Agency APL Adaptable Program Loan CAS Country Assistance Strategy CBA Cost Benefit Analysis CBO Community Based Organization CDF Comprehensive Development Framework CEA Cost Effectiveness Analysis CIDA Canadian International Development Agency CWSP-2 Second Community Water and Sanitation Project DA District Assembly DACF District Assembly Common Fund DANIDA Danish International Development Agency DCA Development Credit Agreement DCD District Coordinating Director DFO District Finance Officer ERR Economic Rate of Return EU European Union GOG Government of Ghana GTZ/KFW German Agency for Technical Cooperation/Kreditanstalt fur Wiederaufbau ICB International Competitive Bidding ILGS Institute of Local Government Studies LACI Loan Administration Change Initiative LGPSU Local Government Project Support Unit LVB Land Valuation Board MLGRD Ministry of Local Government and Rural Development NCB National Competitive Bidding NDF Nordic Development Fund NDPC National Development Planning Commission NGO Non Governmental Organization PC Project Coordinator PCC Project Coordinating Committee PIM Project Implementation Manual PMR Project Management Report RIAP Revenue Improvement Action Plan SFR Statement of Funds Requirement TSC Technical Services Centre UESP Urban Environment Sanutation Project UVPBA Urban V Project Bank Account Vice President Jean-Louis Sarbib, AFRVP Country Manager/Director Peter C Harrold, AFC 10 Sector Manager/Director Letitia A Obeng, AFTU2 Task Team Leader/Task Manager Jagdish K Bahal, AFTU2  GHANA URBAN 5 CONTENTS A. Program Purpose and Project Development Objective Page 1. Program purpose and program phasing 3 2. Project development objective 4 3. Key performance indicators 5 B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project 6 2. Main sector issues and Government strategy 6 3. Sector issues to be addressed by the project and strategic choices 7 4. Program description and performance triggers for subsequent loans 7 C. Program and Project Description Summary 1. Project components 8 2. Key policy and institutional reforms supported by the project 10 3. Benefits and target population 11 4. Institutional and implementation arrangements 11 D. Project Rationale 1. Project alternatives considered and reasons for rejection 15 2. Major related projects financed by the Bank and other development agencies 16 3. Lessons learned and reflected in proposed project design 17 4. Indications of borrower commitment and ownership 18 5. Value added of Bank support in this project 18 E. Summary Project Analysis 1. Economic 18 2. Financial 19 3. Technical 20 4. Institutional 20 5. Social 20 6. Environmental assessment 21 7. Participatory approach 21 F. Sustainability and Risks 1. Sustainability 22 2. Critical risks 22  3. Possible controversial aspects 23 G. Main Credit Conditions 1. Effectiveness Condition 23 2. Other 23 H. Readiness for Implementation 23 I. Compliance with Bank Policies 23 Annexes Annex 1: Project Design Summary 24 Annex 2: Project Description 27 Annex 3: Estimated Project Costs 38 Annex 4: Cost-Effectiveness Analysis Summary 40 Annex 5: Financial Summary 47 Annex 6: Procurement and Disbursement Arrangements 51 Annex 7: Project Processing Schedule 56 Annex 8: Documents in the Project File 57 Annex 9: Statement of Loans and Credits 58 Annex 10: Country at a Glance 60 Annex 11: Profile of Project Towns 62 Annex 12: Programme Letter 69 MAP(S) IBRD 26553  GHANA URBAN 5 Project Appraisal Document Afnca Regional Office AFTU2 Date March 9, 2000 Team Leader: Jagdish K Bahal Country Manager/Director: Peter C Harrold Sector Manager/Director. Letitia A Obeng Project ID: P050624 Sector(s) UU - Urban Development Adjustment Lending Instrument- Adaptable Program Loan (APL) Theme(s): Urban Poverty Targeted Intervention: Y IDA Others Total Commitment Closing USS m % USS m USS m Date Date APL I 10 83 486 11 47 22 30 06/30/2003 Government of Ghana Loan/ Credit _ _ _ _ _ _ _ _ _ _ _ APL 2 25 34 73 8 9 00 34 34 06/30/2007 Government of Ghana Loan/ Credit _ _ _ _ _ APL 3 37 00 74 0 13 00 50 00 06/30/2011 Government of Ghana Loan/ C red it _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Total 73 17 ____ 33 47 1 106 64 __ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ Project Financing Data [ I Loan [XI Credit [] Grant [ Guarantee []Other (Specify) For Loans/Credits/Others: Amount (US$m) 10.83 Proposed Terms: Smgle Currency Grace period (years) 10 Years to matunty 40 Commitment fee 0 5 Service charge 0 75% F16*1ing =a&j V Jm