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 GHANA: Focus on Investment opportunities in the Trunk Road Sector
Ghana’s road network, which is 39,769 kilometres, is the responsibility of three main road agencies; namely, the Ghana Highway Authority (GHA); the Department of Feeder Roads (DFR); and the Department of Urban Roads (DUR). The GHA administers 13,245 kilometres of trunk and town roads; the DFR and the DUR are responsible for 24,313 kilometres and 2,211 kilometres respectively. The GHA’s 13,245 kilometre trunk road network is made up of 4,715 km paved and 8,529 unpaved roads, and constitutes about 33.3% of Ghana’s road network.
The GHA was created to plan, develop, maintain and administer Ghana’s trunk roads, including ferries and other related facilities. With the Mission, "to provide a safe and reliable trunk road network at optimum cost, taking advantage of modern technology in road building and new income-generating methods to facilitate socio-economic development in the country", the GHA has since 1988, been pursuing a 17-year programme of stabilising the country’s trunk road network. This is being done through the clearing of a back-log of deferred maintenance, rehabilitation and re-construction, to achieve a trunk road network condition mix of 70% good, 20% fair, and not more than 10% poor by the year 2005. This would be a remarkable achievement against the 15% good, 40% fair and the 45% poor just before the launching of the government’s Economic Recovery Programme (ERP) in 1983.
ACHIEVEMENTS
Within the context of the Economic Recovery Programme initiated since 1983 with the support of the World Bank and other donor agencies, the GHA has made significant strides.
Since 1983, the GHA has completed over 40 road and bridge development projects; rehabilitated a total of 10,760 kilometres of trunk roads, including town and city roads, and hundreds of drainage structures. About 197 small to medium sized bridges have also been rehabilitated in various parts of the country. In addition, the GHA has in recent years also completed periodic maintenance works covering about 3,019 kilometres with drainage facilities. Currently, there are 34 additional on-going trunk rehabilitation and reconstruction projects funded by the government and foreign donors.
NEW ROAD INVESTMENT PROGRAMME
In 1996, the GHA’s sector ministry, the Ministry of Roads and Transport, launched a six year (1994-2000) Highway Sector Investment Programme (HSIP). The HSIP is to enable road agencies ensure the sustainability of road maintenance, rehabilitation and, where necessary, re-construction works. Other components of the HSIP are policy reforms involving private sector financing, financial management improvement, environmental sensitivity, road safety and support for axle-load control measures.
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The HSIP is supported by five international funding institutions, namely; the International Development Association of the World Bank; the Kreditstantalf fur Wiederaufbau (KFW) of Germany; the European Union (EU); Overseas Economic Co-operation Fund (OECF) of Japan, and DANIDA of Denmark.
With the assistance from these donors, the GHA is rehabilitating a number of important trunk roads. These include the 93km World Investment News Ltdba Junction – Akim Oda trunk road. The Authority is also resealing about 330 kilometres of selected trunk roads throughout the country. A number of vital bridge links are also being constructed while some of the hazardous road sections are being improved to reduce motor accidents.
Other components of the HSIP include improving axle-load control and the construction of a modern training centre, staff housing units, and a new Central Laboratory to improve quality control.
Furthermore, under the HSIP, both International Competitive Bidding (ICB), and National Competitive Bidding (NCB), procedures are being used to enable foreign and classified local contractors to bid for identified road and bridge works.
PRIVATE PARTICIPATION IN THE ROAD SECTOR
Due to the financial constraints facing the Ghana government, efforts are being made to attract private participation in the trunk road sector through Build, Operate and Transfer (BOT); or Maintain, Operate and Transfer (MOT) schemes under concessionary agreements. The necessary legislative structures are being drafted to facilitate the implementation of these schemes.
TEL: (44-181) 906 4877
FAX: (44-181) 906 4095
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© World INvestment NEws, 1999.
This is the electronic edition of the special country report on Ghana published in Forbes
December 13th 1999 Issue.
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GHANA
