Ghana - Highway Sector Investment Program Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No: 24248 IMPLEMENTATION COMPLETION REPORT (iDA-28580; PPFi-P7530j ON A CREDIT IN THE AMOUNT OF SDR 67.8 MILLION (US$ 100 MILLION EQUIVALENT) TO THE REPUBLIC OF GHANA FOR A HIGHWAY SECTOR INVESTMENT PROGRAM June 21, 2002 Transport Africa Reirnn I This document has a restricted distibiitinn and may be used by ren-'nipnk nnlv in the nerfnnrmanee nf their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS (cn E Currency Unit = Cedis I Cedis = US$ 0.00013 USS I = Cedis 1,550 (Appraisal) US$1 = Cedis 7,860 FICtAL VYAD January I December 31 ABBREVIATIONS AND ACRONYMS AMISU Accounting and Management Information System Unit BRRI Building and Roads Research Institute CAS Country Assistance Strategy CMS Contract Management System DANIDA Danish intemnational Development Agency DFR Department of Feeder Roads DURID Departm.ent of IIUrban Roads EIA Environmental Impact Assessment ERR FEnnnmoi Rate nf Return GHA Ghana Highway Authority GHC Ghanaian Cedis GOG Govemment of Ghana HDM Highway Design and Maintenance Model HSIP Highway Sector Investment Program ICB lntemational Competitive Bidding ICR Implementation Completion Report IDA Intemational Development Association IT information Technology LAN Local Area Network MOF - ~~~Ministry of Flinancer MRH Ministry of Roads and Highways MRT Ministrv nr Roads and Tr2nnnnrt MTEF Medium-Term Expenditure Framework NCB National Competitive Bidding NDPC National Development Planning Commission NRSC National Road Safety Commission NPV Net Present Value PMMS Pavement Maintenance Management System PPF Project Preparation Facility PRSP Poverty Reduction Strategy Paper QAG Quality Assurance Group RF Road Fund RSDP Road Sector Development Program SAR Staff Appraisal Report T>n ~ ~~~~ ... sAoR DA-,rcc TRP-I Transport Rehabilitation Project I TRP=2 Transprt R>ehabilif-ation P._;_ect VOC Vehicle Operating Costs Vice President: Callisto E. Madavo CoUuntry IManagerlDr.r Pe..; CJ.-Haold ~..UII) Ii4I4~LPILL-ULUE. a I . . Sector Manager/Director: Maryvonne Plessis-Fraissard Task -eani LCeu,iI^k MvIanaer .awi Ad  REPUBLIC OF GHANA HIGHWAY SECTOR INVESTMENT PROGRAM CONTENTS Page No. 1. Project Data I 2. Principal Performance Ratings 1 3. Assessment of Development Objective and Design, and of Quality at Entry 2 4. Achievement of Obhective and Outnuts a 5. Major Factors Affecting Implementation and Outcome 12 u. - U:naSOuhlIJ- X , 7. Bank and Borrower Performance 14 8. Lessons Learned 16 9. Partner Comments 17 10. Additional Information 27 Annex 1. Key Performance Indicators/Log Frame Matrix 28 Annex 2. Project Costs and Financing 30 Annex 3. Economic Costs andtBenefits 32 Annex 4. Bank Inputs 34 Annex 5. Rati rtgs for Achie-eent of Objectives.Out-uts of Components 37 Annex 6. Ratings of Bank and Bonower Performance 38 Annex 7. List of Supporting Documents 39   jProject ID: P000957 jProject Name: Highway Sector Investment Program Team Leader: Tawia Addo-Ashong TL Unit: AFTIR |ICR Type: Core ICR |Report Date: June 24, 2002 1. Project Data Name: Highway Sector Investment Program IJC/TF]Number: IDA-28580; PPFI-P7530 Country/Department: GHANA Region: Africa Regional Office Sector/subsector: TH - Highways KEY DATES Original Revised/Actual PCD: 08/23/91 Effective: 10/24(96 01/31/97 Appraisal: 03/15/95 MTR: 09/15/98 12/04198 Approval: 05/14/96 Closing: 06/30/2001 12/31/2001 Borrower/lImplementing Agency: GOVERNMENT/MIN OF ROADS & TRANSPORT Other Partners: STAFF Current At Appraisal Vice President: Callisto Madavo Edward V. K. Jaycox Country Manager: Peter C. Harrold Ngozi N. Okonjo-lweala Sector Manager: Maryvonne Plessis-Fraissard James Otis Wright Team Leader at ICR: Tawia Addo-Ashong Alan Coulthart ICR Primary Author: Tawia Addo-Ashong 2. Principal Performance Ratings (HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HL=Highly Likely, L=Likely, UN=Unlikely, HUN=Highly Unlikely, HU=Hi2hly Unsatisfactoryv H=High, SU=Substantial, M=Modest, N=Nealieible) Outcome: S Sustainabilitv: L .h.s,itu,tionan fL.ear.nopme Im.r.pac!: S Bank Performance: S Borrower Performance: S QAG (if available) ICR Oualitv at Entrv. S Project at Risk at Any Time: No  3. Assessment of Development Objective and Design, and of Quality at Entry 3.1 Original Objective: The ehietive of fthi Prnipft as gtftpd in the S'aff Aprnncal sa!nRrt (S,A I) ,w in ,ascist the rZ^r.iAmA",nt nf Ghana (GOG) to increase economic growth, thereby promoting poverty alleviation through the reduction of vehicle oy.p.raing costs by: (a) maintaining r.. ab.l.dili.3ang a recnfrctng nro; and vu) nno,.rnn sustained improvements in the road sector by: (i) developing and implementing cost recovery policies; (ii) 1w AArAAAkAss fib. . r g sslobA __ s +AA4_A . _Al __A. . _ AU - ._-A _ -A 1 _ A_ -_ -_ uuAzfl8r, *sntuCu t9aty all u1. puuaa. Cu pFtvatw . I2 GnU I vilJ 1hIiLUVII8 liliait-IdU IaIIa6uII1IvL control in the Roads Sector. The objectives were clear, relevant and consistent with the Ghana Govemment's strategy for reducing poverty by increasing growtn, with a focus on uhe agricuitural secior, as stated in ihe Country Assistance Strategy (May 1995). The broad objectives of the CAS were to support poverty alleviation, capacity uilding, pinvate sector development and to create conditions for sustainaole environmeniai development. The objectives were also in line with the objectives set out by the Govemment's Letter of Sector Policy, dated February i996. T-ne contents of this letter were a joint elTort between govemment, stakeholders, road user groups and development partners active within the road sector. The principal immediate aim as stated in the letter was to clear the backlog of road maintenance on a sustainable long-term basis. In achieving this, the objectives as set out in the letter were: * Strengthening the organizational structure and institutional capacity of the Ministry and its agencies * Clearing the backlog of rehabilitation and periodic maintenance work * Basing.road sector investment decisions on sound economic principles, and giving the highest priority to routine and periodic maintenance * Improving cost recovery to ensure the sustained funding of maintenance * Promoting greater private sector participation, both in the execution of works and in the financing of transport infrastructure * Reducing the dependence on foreign technical assistance, increasing training and performance of local staff * Improving the capacity to evaluate the environmental impact of road schemes and design mitigation measures * Regaining sector-wide discipline in expenditure management and control * Streamlining transport regulations, enforcing axle weight reaulations. enhancing road safety and improving traffic management * CGiving nrinritv tn the deveinnment of ndn-mntnri trnnrt nii imnrnvinc fnriitipe fnr th,ir ..e and S Lrenn ntbpnu. Anninr pnn^r,lnf inn onA4 -ml ~1n A .-r.nnnn.,nnotnn.anvnA ,,-'t.en o ... r, donowo.rdnto and s..li;.. ga, ",poigpoue-"et oioig. reporting procedures for donor supported and Ghana Govemment programs. 3.2 Revised Obiective: The original objectives were not revised. 3.3 Original Components: The project/program consisted of three main components directed towards the Ministry and Ghana Highway Authority (GHA). These were: (a) Trunk road rehabilitation and maintenance (b) Institutional strengthening and capacity building, and (c) Policy reform. (a)Trunk road rehahilitation and maintenance (GHA) ISS75.1 millionn This comnonent envered three main areas:  (i) Rehabilitation and periodic maintenance - The credit was to hclp clear the backlog of maintenance works incurred by GHA by financing about 900/0 of rehabilitation works in the Brong Ahafo and Central Regions of the country, as well as about 770 km of periodic maintenance throughout the country. Also to be undertaken were 90 km of rehabilitation. The periodic maintenance works were to be undertaken mainly by local contractors, whilst the rehabilitation works were packaged as ICB contracts. The periodic maintenance works comprised regravelling, resealing and resurfacing. Rehabilitation works consisted of rebuilding the entire road structure, without any widening or realignment of the original road. (ii) Improvement of hazardous road sections (GHA) - This component provided spot improvements to major accident-prone spots identified on the trunk road system around the country. through the provision of road signs, guard rails and other road furniture. (iii) Bridge rehabilitation and reconstruction (GHA) - Bridges in the Brong Ahafo Region and specific bridges in sther regions were to he reconstructed and rehabilitated to eomnlement the maintenannce workc to be done. (b) Institutional strengthening and capacity building (GHA) US$26 million. It was expected that lcgislation would be passcd to amend the GHA Decree to specify the composition and -f- -- c of d4c 1-1 A n -s, ..A i- -k ,., . fiko .i..-.. ,f- . t..., ...'IA - ..A -...n- s. 0 ....s . of to. GH.A . .oa.- and enable t o--. et n I S.f*. uild., af z.d ..n ..ain.tai contracts with the private sector. A maintenance management system, designed under a previous IDA p,-ojcct, was 'wo be-' upudz'.ed and up;.A-ed A ma- -eren ino..:nsse MS)as eig,du.e the previous project was to be implemented and GIIA staff were to be trained in its operation. Other technical assis tance envisagc-d -was the rest-u.lishmen;I of a bridgez condifion andu n-.ainWIltumv byM401, ils, . services of accounts and an internal auditor and short term assistance to review quarry privatization, axle load regula'uons and asscssment of training needs and facilities. Also expected was tecnnicai assistance for implementing the Authority's MIS, updating and upgrading of their Maintenance Management System. Engineering design and feasibility studies of about 2,600 km of the trunk road network, and supervision of all contracts were to be undertaken by local and international consulting firns. The provision of equipment for GHA;s mobile maintenance units and vehicles for the staff of GHA would facilitate emergency works and enhance the Authority's capacity to supervise works. An extension to GHA's central material laboratory would provide adequate space to house equipment that had been recently acquired. Internal and external training programs were to be organized for GHA staff and local training programs were to be organized for local contractors. To help retain qualified staff, staff housing was to be provided in the regions as well as at Headquarters in Accra. (c) Support to MRT/NDPC MRT's technical assistance involving the provision of a Claims and Legal Specialist was to enable the Ministry to evaluate claims and settle disputes from contractors to whom they owed arrears. Support to the Accounting and Management Information Unit (AMISU) of the Ministry was to enable the unit to continue carrying out its functions of project coordination and financial management. In addition, it was envisaged that AMISU would carrv out baseline and follow-up studies to monitor the developmental impact of the program. Support was also to be provided to the newly established Road Fund Secretariat for the first two years. after which it was to become self-financing. The support to NDPC was largely aimed at continuing support provided under the previous TRP- I project and entailed providing further technical assistance, field studie,p rePan'h, onprnfinnnl workshons staff Tdevelonmnt and tr_inini n also entailed Ioaistiral siinnort required in the process of implementing, monitoring and evaluation of the first five year development plan  with a special focus on the transport sector. The project provided funds for MRT to procure vehicles, office equipment and computers to enable the ministry to continue to facilitate its overall coordination and oversight functions, organize training programs for local contractors, enhance policy formulation and donor coordination and progress monitoring functions. 3.4 Revised Components: The original components were not revised throughout the life of the project. 3.5 Quality at Entry: The Quality at Entry is rated as satisfactory. The project was prepared through the active participation of all stakeholders in the road sector. It attempted to respond to the Govemment's desire for a sector wide approach for interventions in the road sector. Therefore the design incorporated a portion of the Government's own program for the road sector over the subsequent four years. Issues that would be critical to the sustainability of the project, such as the arrears owed to road contractors and institutional reform needed, were clearly identified and steps were taken to address them prior to appraisal and negotiations. Substantial portions of the main civil works were designed prior to project implementation with the aid of a Project Preparation facility (PPF). Lessons leamed from previous bank projects in Ghana were incorporated into project design. Preparations of detailed engineering designs and bid documents were completed for all of the road works to be funded by IDA and were reviewed during appraisal. This helped to speed up implementation of the project after effectiveness. A detailed economic analysis of all roads to be constructed under the project was performed. Environmental issues were addressed upfront and the lack of capacity to imnlement the environmental mitigation plan was tackled with the implementing agency recruiting an environmental specialist to monitor and ailsn build their canacity to handle environmental concerns. R.isks were clea.rly identified and assessed. The major risk of su tainability of benefits ar:ieng frrom road improvements was addressed by getting the Govemment's commitment to increase the levy on vehicle fuel on an. ann.ual .o..s to me.-t 1u,e fi.!.! cost of mainthinif ir ro.ad ne:work. I.- .ain imp4r-- I Alemen:ingWt a.ie, MRT G-HIIU JI Ark, WeIr pJa1.i.ioe III pt,Jl-ojec pi and4I91 4IIU UIeU %apacjiL7 to implement the program was identified. There was no parallel project management unit set up to manage the project. 4. Achievement of Objective and Outputs 4.1 Outcome/achievement of objective: The overall outcome of the project is rated satisfactory. The project achieved the broad objective of achieving cost effective road transport and reducing_ overtv by increasing growth through maintaining. rehabilitating and reconstructing roads. It partially achieved the objective of sustaining improvements through the develnpment nf the lhical canncitv in both nrivate and nlhluie- sectnrr and imnrmving finneial management control in the sector. Objective 1 - Reduction in Vehicle Operating Costs and Poverty Reduction Socio-economic studies undertaken during the implementation period show that improved road  u-ansporiaLin hasW uiIepeU LU gUIM1UL gEUWUI dO U-eUUce pUveIty Uy IVW%IIIIg U41ni;jAJLLiUII %,VLo 4saU stimulating development of markets. This has encouraged the farmers located in the corridors of renabiiiateu roaus to increawV pWducuUnU1U nda oII(ZI7d UIM Lem f uheULU1LY op UV . U Uy min4IUig IL Casier to obtain inputs and sell outputs. The study identifies that benefits have accrued to the rural economy; overall transport expenditures on the rehabilitated routes have decreased by about 10%; there is an estimated 25% increase in farm incomes; 16.2% increase in incomes of people engaged in commercial and service activities along the routes; and 12% increase in industrial activities with corresponding increase of 25% in incomes of people engaged in this sector along the program roads. There is an increase in average daily traffic of 90/g and reductions in travel and waiting times of 22% and 30%, respectively. There has been a fare reduction of 5% in relative terms. Overall transport expenditures on the rehabilitated routes have decreased by about 10% Furthermore, improved road transportation has made it easier for people to go to school, obtain medical attention and have regular interaction with agricultural extension officers. It has generated employment and brought about social equity and political unity by helping to integrate the poor and other vulnerable groups into the mainstream Ghanaian society. Inmprovemnent in Renmoval ofMain tenance Backlog A key development objective of the program was to support Govemment in its effort to clear the huge road maintenance backlog, which hitherto had been identified as one of the main constraints limiting growth in the economy. The overall achievements of the sector during the program period show the cumulative pDcrformance of the three sector agencies as follows: GHA achieved 54% performance on routine maintenance activities, 33% on periodic maintenance activities and 125% on rehabilitation; DFR achieved 24% nerformance on routine maintenance activities. 33% on Deriodic maintenance activities and 78% on rehabilitation; DUR achieved 79% performance on routine maintenance activities and 67% on periodic maint-nskaPnee ativities. The IDA component. of the p.-oPAm. h2c ciOnt.rik,utd Sit difi',^nitlu tn tht. imprnovmPnt in the paved rri condition mix in GHA, which shows the percentage of paved roads in good condition improving from 2Q.4% fw A00.4 dur.ng .e pAuJg .. nhe oven!! ondition mlx .naved and unpaved