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Parliament Approved US $ 150m To Transport Sector

The objectives of the loan agreement are to support the development of road infrastructure, improved road safety, strengthen the capacity of the sector agencies and to foster the regional integration.

July 13, 2018

Parliament has approved the financing agreement between government of Ghana and the International Development Association IDA for an amount 11.600,000 Special drawings Right SDR equivalent to US $150 million to finance the proposed transport sector improvement project TSIP which was presented to the house on Tuesday 26th June, 2018 by the deputy minister for finance Mrs Abena-Osei Asare on behalf of the minister of finance.

The objectives of the loan agreement are to support the development of road infrastructure, improved road safety, strengthen the capacity of the sector agencies and to foster the regional integration.

Reading the report of the finance committee, the chairman, Mr Mark Assibey Yeboah disclossed that the aims of the project ie to reduce travel time on selected parts of classified road network in northern Ghana.

Terms and conditions of the Loan

The loan amount will be equivalent to US$ 150 million which will be graced in five years later with a repayment of 20 years and matured in 25 years. A maximum commitment charge of 0.5% per annum has been approved excluding 2018, whilst 0.75% per annum service charge was accepted, meanwhile 1.25% will be charged on the entire amount and a grant element of 30.44%.

Components description of project Road Asset Preservation

This component will support the development of road infrastructure in the Northern part of Ghana. The road stretch from Tamale to Yendi and Tatale which is 103km of pave and 67km of unpaved road will be rehabilitated to improve the road network in the integral part of the central East-West corridor.

About 200km of feeder roads/farm roads will also be developed in parts of Brong Ahafo, Northern, Upper East and Upper West regions. The roads would be constructed using performance based contracting methodology.

Component 1 will also support the establishment of a network-wide road asset management system, an Internet connectivity at the Tatale Border post, and support the axle load control programme with equipment for permanent weight stations.

Component 2 – improved road safety

This component covers activities to be implemented by the both the national road safety commission NRSC and the Driver and Vehicle licensing authority DVLA. The DVLA will be supported to scale up the use of private garages to inspect vehicles, develop and implement an integrated software for the DVLA lincesing system.

Besides the NRSC will be supported to operational is the road accident database management system RADMS it recently purchased. RADMS is a state-of-the-art suite of crush database, analysis, and reporting software; using police crush reports as input data.

This component also help to upgrade the software to use smartphone applications and geographical information system GIS for reporting.

Also, the ongoing Lollipop -programme will be implemented in about five hundred schools to make pedestrian road crossing safer for the school children.

Component 3 – Institutional Strengthening and capacity Building

For this components, it will support an institutional review of the agencies with the aim of restructuring the road and transport sector. It will also involve the implementation and operationalisation of a and data management system. This is to boost the capacity of staff through short and long term training programmes.

Source: Kweku Ansah

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