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The African Development Bank Group is backing a road project in Ghana. The group has approved a total of US$30.03mn, made up of an African Development Fund (ADF) loan of 18mn units of account (UA), equivalent to US$24.80mn, a loan of UA3 million, equivalent to US$4.13mn from the Nigeria Trust Fund (NTF) and an ADF grant of UA0.80mn, which is equivalent to US$1.10mn, bringing the total amount approved to US$30.03mn.

The project will involve rehabilitation of a 41km road between Nsawam and Apedwa to asphalt, with pavement cross-sections of 7.3m on the carriageway and with shoulders measuring 2.5m on each side. This includes a 10.3km eastern bypass and three bridges at the beginning of the project in Nsawam by-passing the heavily built-up business district. It aims to provide an integrated, well managed, viable and sustainable transport infrastructure and services, aimed at meeting national poverty reduction and regional integration goals.

The objectives of the project are to: (i) reduce the travel time and vehicle operating cost, resulting in reduced road user costs for both passengers and freight between Nsawam and Apedwa; (ii) determine the technical feasibility, economic viability, the environmental and social impacts and prepare detailed engineering designs, cost estimates and tender documents for the Agona Junction to Elubo Road.

The total project cost, net of customs duties and taxes, has been estimated at UA25.55mn, equivalent to US$35.19mn. The ADF, NTF, Organisation of Petroleum Exporting Countries (Opec) Fund and the government of Ghana will finance the project. The ADF loan will cover 70% of the road works cost while the NTF will contribute 12.9%.

The project is in line with the bank group policy on regional economic integration as articulated in its “Vision”, and bilateral agreement between the bank and Ecowas, as well as bank strategies for Ghana for the period 2002-04, which have placed rehabilitation and upgrading of the infrastructure, especially roads, as priority under the basic funding scenario.