WASHINGTON, June, 6, 2017— The World Bank approved today a $150 million International Development Association* credit for Transport Sector Improvement Project (TSIP) in Ghana. It will help improve regional connectivity in the Northern Region involving rehabilitation of road links from Tamale to Yendi and Tatale on the Eastern border with Togo, and about 200km of feeder roads to link agricultural value chains to provide access to markets and support agribusiness.
The direct beneficiaries of the road work under TSIP would be the users of the road corridor and the populations of the area where feeder roads are to be improved. These include farmers needing improved access to bring farming inputs and extension services to their farms and to transport their produce to their value chain buyers and local communities needing improved access to social services such as schools, clinics, and markets. Smaller towns, villages, and rural settlements within the targeted rural areas will also benefit directly from socioeconomic improvements.
“Our support to Ghana under the TSIP seeks to respond to Government’s priorities of inclusive economic growth, job creation, increased efficiency in delivering public services, and better accountability to citizens,” said Henry Kerali, World Bank Country Director for Ghana.
The project will reduce travel time on selected parts of the classified road network in Northern Ghana, promote road safety, and strengthen the institutional management of the transport sector by using the Performance Based Contracting Methodology. It will specifically contribute to capacity building and modernization of the transport sector institutions, generating efficiency gains in a sector that is a major contributor to growth and poverty alleviation.
The World Bank Group’s twin goals of ending extreme poverty and promoting shared prosperity are aligned with that of the Ghana Shared Growth and Development Agenda II. The TSIP’s target area, Northern Ghana, is identified in the 2014 Household Survey as being consistently poorer than the rest of the country. The area derives most of its income from agriculture through a mix of irrigation along the major rivers and dryland farming. The current state of the road infrastructure is a key contributor to low income growth and poor access to services and growth opportunities.
The activities of the TSIP will cover three main areas of support; innovative performance-based contracting on trunk and feeder road networks, allowing the respective responsible agencies to gain experience and to later use it in domestically funded contracts; Improving road safety through the development and implementation of a Road Accident Data Management System and a computerized system to manage the Drivers’ and Vehicle Licensing System of Ghana; and Considering Options to modernize the road management institutions as well as support the implementation of Public Private Partnerships in the road sector with the development of a road tolling policy.
* The World Bank’s International Development Association (IDA), established in 1960, helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives. IDA is one of the largest sources of assistance for the world’s 77 poorest countries, 39 of which are in Africa. Resources from IDA bring positive change to the 1.3 billion people who live in IDA countries. Since 1960, IDA has supported development work in 112 countries. Annual commitments have averaged about $19 billion over the last three years, with about 50 percent going to Africa.