Parliament on Tuesday, July 21 approved $500m credit facility to finance rehabilitation of feeder roads, maintain roads and sustain all-season farm-to-market road connectivity in selected districts.
The credit facility agreement between the Government of the Republic of Ghana (represented by the Ministry of Finance) and the International Development Association (IDA) of the World Bank Group is to finance the Ghana Market Access and Connectivity Project (GMACP).
The Ghana Market Access and Connectivity Project is structured around four integrated components aimed at improving rural transport infrastructure, strengthening the maintenance of feeder roads and enhancing agricultural market access.
The credit facility comprises IDA Credit of $500 million; and Government of Ghana counterpart funding of $23 million.
The total project cost is projected at $523 million.
The objective of the facility is to improve and sustain all-season farm-to-market road connectivity in selected districts of Ghana.
It is a targeted investment and implementation facility aimed at physical connectivity, resilience, maintenance sustainability, and associated institutional reforms.
The Project will rehabilitate approximately 1,050 kilometres of feeder roads across four agricultural clusters covering 13 regions.
The project is structured in four components. The first component is allocated $473 million from the IDA credit facility.
It is the principal component of the Project and will finance the rehabilitation of approximately 1,050 kilometres of feeder roads across selected agricultural production areas.
The roads will be rehabilitated as all-weather roads to improve year-round connectivity between farming communities, production centres and markets.
The second component has a total allocation of $41 million, comprising $18 million from the IDA credit and $23 million in counterpart funding from the Government of Ghana. It is divided into two main areas: the maintenance of rehabilitated roads and institutional support for road-financing reforms.
The remaining $5 million from the IDA credit will finance technical assistance to strengthen the Road Maintenance Trust Fund and support the implementation of the reforms introduced under Act 1147 of 2025.
the third component is allocated $9 million from the IDA credit. It will finance the institutional, administrative and technical arrangements required for the effective implementation of the Project.
The component will strengthen the capacity of the Ministry of Roads and Highways and the Department of Feeder Roads to undertake project coordination, procurement, financial management, monitoring and evaluation.
It will also support environmental and social safeguards, occupational health and safety, stakeholder engagement and the management of compensation and land-related matters.
The fourth component is a zero-cost. Although it has no initial financial allocation, it will provide mechanism through which funds from other project components may be reallocated to respond rapidly to an eligible crisis or emergency.
The component may be activated in response to events such as natural disasters, severe flooding, disease outbreaks or other public health emergencies.
Its activation will be governed by a Contingent Emergency Response Component Manual and an Emergency Action Plan prepared in accordance with the Financing Agreement.
Credits: 3News.com
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