Announcement of Thirteen Million Dollars Credit to Ghana for a First Highway Project on November 1, 1973

• INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET. N.W .. WASHINGTON 0. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 73/81 Subject: $13.0 million credit to Ghana November 1, 1973 fo~ a first highway project. The International Development Association (IDA), an affiliate of the World Bank, has approved a credit of $13.0 million to help finance a project to rehabilitate and improve trunk road sections totaling 345 miles. The trunk roads are located along four major routes in the deusely populated southern regions with high agricultural activity including transport of cocoa, fish, maize, other foodstuffs, a..~d timber. The project also includes consultants' services in supervising such • works, pre-investment studies as a basis for further road improvement projects, the provision of equipment for traffic control and pavement surveys, and fonnulation of a progr&u to improve road maintenance. Ghana is currently facing the major task of restructuring its economy. This is partly manifested in the efforts for greater self-sufficiency in food and spreading agricultural development more widely. This emphasis on agriculture involves support from Ghana's transportation sector through prompt rehabilitation of roads which form the dominant mode of transport. In 1960 Ghana's road network was probably the finest in tropical Africa, but during the last decade, the 20,000-mile road network has suffered some deterioration. Part of the trunk road system, totaling about 6,300 miles, is now inadequate to handle increased traffic and requires considerable rehabilitation and maintenance . • Note: Money figures are expressed in US dollar equivalents. /more IDA P.R. No. 73/81 -- Ghana -- highways - 2 - The present project is largely based on the conclusion;cf economic and engineering studies -- financed by the United Kingdom -- of over • 2,000 miles of roads. This led to a plan for the urgent rehabilitation and improvement of about 750 miles of roads. The Government has since improved about 307. of roads included in this plan. This project comprises the bulk of the remainder of high priority road improvements identified by the foregoing studies. The project will involve widening, base reconstruction and bituminiza- tion of 13 sections of trunks, thereby reducing vehicle operating costs and averting more costly reconstruction in the future. The road improvements will also facilitate more efficient and increased agricultural production. • The supervision and training services will help quality control and the imparting of important skills to Ghanaian personnel. The total cost of the project is about $19.5 million, with an estimated foreign exchange component of about $11.0 million. The IDA credit of $13.0 mil- lion will finance the foreign exchange and make a contribution to local costs. The balance of local costs, amounting to about 33% of the total, will be financed by the Ghanaian Government. The Ministry of Works and Housing is responsible for execution of the project and will retain consultants to provide direct field supervision and help establish the project unit under Ghanaian supervision. The IDA credit is being made to the Republic of Ghana for a tenn of 50 years, including 10 years of grace. It will be interest~free but a service charge of 3/4 of 1% will be charged to cover IDA's administrative expenses. The project is expected to be completed in 1977. - 0 - • • November 1, 1973 TECHNICAL DAT-A PROJECT: First Highway COUNTRY: The Republic of Ghana TafAL COST: $19. 46 million IDA FINANCING: $13.0 million, 50 years, 10 years of grace, interest- free except for a service charge of 3/4 of 1% to cover IDA's administrative.expenses. orHER FINANCING: The Government of Ghana will provide the balance of local costs amounting to $6.5 million. • IMPLEMENTING ORGANIZATION: The Ministry of Works and Housing, Accra, Ghana. PROJEcr DESCRIPTION: The project consists of a three-year program of rehabilitation and improving trunk road sections totaling 345 miles and consultants' services in supervising such works; pre-investment studies as a basis for further road improvement projects; the provision of equipment for traffic control and pavement surveys; and formulation of a program to improve road maintenance. PROCUREMENT: Contracts for rehabilitation works will be awarded on the basis of international competitive bidding. Road equipment financed by IDA will also be procured through international competitive bidding. CONSULTANTS: Consultants will be employed for construction supervision and pre-investment studies \lllder terms and coµditions acceptable to IDA. ESTIMATED COMPLETION DATE: 1977 Note: Money figures are expressed in US dollar equivalents. - 0 - •