Transportation Component

The main objective of the Transportation Infrastructure Development Project is to reduce transportation costs affecting agricultural commerce at the sub-regional and regional levels. The Transportation Component comprises the following:

 Upgrading of 14.125 kilometers of the National Highway (N1) in Accra between Tetteh Quarshie Interchange and Mallam Junction, the main thoroughfare between the production areas and the International Airport in Accra and the Seaport in Tema;

Box 1 Views on Loans

“In the initial stages of priming and training of FBOs there was a rush by several farmers to participate in the project. Upon analysis of the background of several of the potential beneficiary farmers, we found that majority of them were affiliated to a particular political group. My team also found that when there was a change in government those who did not want to join in the project asked to be registered, apparently aiming to take advantage of their government being in power. We therefore became suspicious of their intentions because they were aware of the loan packages.”

 Constructing or rebuilding of 75.21 kilometers of two-lane trunk roads in the central Afram Basin area to facilitate the growth of agricultural production and access to social services; and

 Improvements to the ferry service of the Volta Lake Transport Company (VLTC) that connects Adawso on the southern shore of Lake Volta to EkyeAmanfrom on the northern shore.

Due to the technical oversight responsibilities associated with transportation projects in Ghana, MiDA has executed Implementing Entity Agreements with the following Departments/Agencies of various Ministries:

 The Ministry of Roads and Highways (MRH) o Ghana Highway Authority

o The Department of Feeder Roads (DFR), o The Department of Urban Roads (DUR) o The National Road Safety Commission (NRSC)

o The Driver and Vehicle Licensing Authority (DVLA) and o The Road Fund Board (RFB)

 Ministry of Transport (formerly Ministry of Harbours and Railways)  Ghana Marine Authority (GMA)

 Environmental Protection Agency (EPA)

The burn rates for the Transportation Component as at June 30, 2010 are presented in Exhibit 11.

Exhibit 11: Burn Rates - Transportation Component (June 30, 2010) Activity $ Committed (000,000) $ Disbursed (000,000) Burn Rate % N1 HIGHWAY 143.441 41.568 29.0% Trunk Roads 28.611 7.639 26.7% Ferry 12.179 3.63 29.8% Total 184.231 52.837 28.7%

Source: CKP Weekly Report, June 30, 2010

3.3.1 Status of Implementation

The construction and upgrade of the N1 Highway is in two lots: Lot 1 (Tetteh Quarshie Interchange to Apenkwa Bridge - 6.1km) and Lot 2 (Apenkwa Bridge to Mallam Junction – 8.125km). Percent of contracted (Design/feasibility) study completed for N1 achieved its target of 100 % at the end of Quarter 13 (June 30, 2010.) The cumulative percent of contracted road works disbursed for the N1 Lot 1 for the period Q1 to Q12 (February 2007 to March 2010) was about 23% against a target of 42%. For the period of Quarter 13 (April to June 2010) the percent of road works completed was 9.93%.

The contractor was permitted by the Ghana Highway Authority to close a major portion of the road indefinitely to allow construction work to proceed unimpeded by vehicular(vehicle) traffic. The engineering consultant indicated that most challenges have been overcome and work on Lot 1 will be completed by the scheduled date of June 2011.

For the N1 Lot 2, the cumulative percent of contracted road works disbursed for the period Q1 to Q 12 (February 2007 to March 2010) was 15% as against a target of 42%. For the period of Quarter 13 (April 2010 to June 2010) was 5.9%.

Construction works for Lot 2 began in April 2010 and as of June 30th, the percentage of physical progress of contracted road works is 5.9% and financial progress is at 18.5%. Progresses on the relocation works for utilities are; Electricity 56.9%, Telecom 62.6% and Water 63.8%. All the Environmental Impact Assessments (EIA), Resettlement and payment of compensation to affected persons are near completion. Physical progress is 39.0% as against the planned target of 48.2%; while financial progress stands at 34.6% out of 44.6% planned target as of June 30, 2010. The ferry activity is slightly behind schedule, regarding the procurement of the works Contractor for the Extension of Landing Stage, Rehabilitation of Terminals and Extraction of tree stumps at the ferry crossing point between Ekye-Amanfrom and Adawso. A contract has been signed for the rehabilitation of floating docks and construction of two new ferries. A letter of commencement of works was issued to the contractor in May 2010, and pre-commencement meeting was held at Akosombo on June 7, 2010. The extension of landing stage and

rehabilitation of terminal procurement works was commenced in mid-May bids were submitted in June. Evaluation of bids and award of contract is yet to be done for works to start.

The tender for the rehabilitation of landing terminal has gone for rebidding; the contract for removal of stumps was yet to be signed as at the time of the Self Assessment Workshop; and the contractor for the ferry construction is at the mobilization stage. The contract for the construction of the ferry was signed in April 2010 and it is expected to take at least twenty (20) months to complete. This tentatively puts the completion time at December 2011.

The trunk road activity in the Afram Basin zone is in two lots: Lot AF1, 32.5km from Agogo to Afrisere; the AF2 trunk road 42.71km is between Afrisere and Dome. Percent of contracted design/feasibility works completed as of the time of the MTR was 90%. For Lot AF1, the overall physical progress completed is 16.7% which is primarily site clearing and grubbing works, earth works, subgrade works and culverts. Financial progress is at 38.5% with a total of 34.4% of contract time lapsed.

In lot AF2, a temporary crossing of the Afram River at Afrise has been completed. The overall physical progress is at 5.2% while financial progress is at 10% as at June 30 with a total of 34.4% of contract time lapsed. It was reported by the supervising consultant that the contractor is mobilizing bulldozers and other equipments to expedite construction.

3.3.2 Positive Results

The upgrade of the N1 Highway is the most visible activity for MiDA because the N1 connects two major road networks in the city of Accra, the capital of Ghana. Due to strict adherence to enforcing the highest standards with respect to Environmental Impact Assessments and implementation of Resettlement Plans, there has been minimum disruption in the lives and livelihoods of persons displaced. MiDA engaged a contractor to build a new craft village for artisans who used to work alongside the highway, provided relocation compensation packages and training and capacity building for some of the displaced persons. The contractor has provided temporary road diversions with gravel surfaces which have significantly reduced the amount of dust for the benefit of motorists and residents in the construction area. Due to the care and concern shown towards motorists and residents, there has been no opposition to the works that are being undertaken.

Strict Adherence of Environmental and Social Impact Assessment (ESIA) for the MiDA project activities has established a precedent that, hopefully, will be adopted by GoG agencies in the transportation sector.

3.3.3 Issues and Challenges

 The procurement of Contractors for the rehabilitation of the landing and terminal facilities at Ekye Amanfrom and Adawso which started in October 2009 did not yield the desired outcome by the end of Q12 (March 31, 2010). The contract had to go for re-bidding because all the initial bids were far above the budgeted amount. As of the

contract was expected to be awarded by August 2010 for actual rehabilitation works to begin in September 2010. Due to this delay, there has been a need to revise the Program of Works and targets to ensure completion before the end of the Compact in February 2012.

 Construction projects, especially roads, are severely affected by the weather. The dry season from November to March provides the ideal time for construction. Road contractors, especially foreign firms as it is in the case of the trunk roads, should be sensitised to this in order for the contractors to plan accordingly.

 The perennial floods that affect the Volta Lake basin can adversely affect the removal of tree stumps along the navigational path of the Volta Lake. This can lead to slippages in the other ferry activities.

 The change in the procurement method by MiDA and MCC for the tree stumps has caused the delay in the award of the contract for the removal of the tree stumps.  Delays in the Trunk Roads Activity initially occurred during the Feasibility Study and

Design stages due mainly to the numerous revisions to the engineering design by MCCs engineering consultants (Jacobs).

3.3.4 Lessons Learned

 MiDA should work with MCC to allow for closer interactions between MiDA’s engineering consultants and MCCs engineering consultants (Jacobs) for faster turnaround of revisions of engineering design drawings. This lesson learned is based on the observation that Feasibility Study and Design stages of infrastructure projects typically take longer than anticipated.