EASTERN CORRIDOR ROAD PROJECT


Overview

  • Reference: P-GH-DB0-018
  • Appraisal Date: 15/06/2017
  • Board Presentation: 13/12/2017
  • Status: LendingLEND
  • Implementing Agency: GHANA HIGHWAY AUTHORITY
  • Location: EASTERN CORRIDOR

Description

The Eastern Corridor which lies to the east of the country, and approximately 695 km in length commences from Tema Roundabout through some important towns in the Greater Accra, Volta, Northern Regions and ends at Kulungugu in the Upper East Region of the country. This corridor is about 200km shorter than the Central Corridor but has a substantial portion unpaved with ageing bridges and experiences washouts and damages during the rainy season making travel difficult.

The Government of Ghana (GoG), in view of the importance of the eastern Corridor, has put a high priority on its development under the Road Sector Medium-Term Development Plan and is actively promoting the development of this route. The development of the Eastern Corridor is expected to contribute to the economic revitalization and the reduction of poverty in the area along the corridor and the neighbouring countries by reducing transport cost and facilitating regional trade.

The GoG therefore sought and received a grant from the African Development Fund (ADF) for the financing of Fufulso-Sawla Road project, part of which is being used to finance the Detailed Engineering Design for Asutuare Junction - Volivo Road (28.3 km), Dufor Adidome - Asikuma Junction (38.4 km) and Asutuare-Aveyime Road (24.0 km). The Asutsuare - Aveyime Road is expected to be reclassified as an inter-regional road on completion of the implementation phase of the project. The design and implementation of these roads compliments the support from the Japanese Government for development of a new bridge over the Volta Lake which is along the corridor. Asutuare Junction - Volivo Road and Dufor Adidome - Asikuma Junction roads link directly to this bridge on opposite ends.

The Government of Ghana now intends to undertake the implementation of these roads under the AfDB ADF14 lending cycle.


Rationale

The economy of the Country has grown in recent times underpinned by a relatively sound economic management, a growing competitive business environment and improving social and economic infrastructure. The country is endowed with a number of natural resources with agriculture accounting for 25% of Gross Domestic Product (GDP) and employing about 50% of the active work force. Gold, cocoa, timber, diamonds, and bauxite are major sources of foreign exchange. The production of Oil in the Country, which began in December 2010 has also helped sustain economic growth. The nation's Gross National Income (GNI) now stands at US$ 1,230 per capita (World Bank (WB), 2010).

The volume of international cargo, meant for its neighbouring landlocked countries has been increasing in recent times. There are however challenges which the nation would have to deal with in facilitating transit of vehicles from the neighbouring countries, such as chronic congestion in and around Accra, the capital city, and Kumasi, the second largest city. The situation currently hampers fast and efficient movement of cargo to the neighbouring landlocked countries necessitating that an alternative route is identified and developed to facilitate transit and trade.

A possible alternative international transit route to Burkina Faso is the Eastern Corridor (N2).


Benefits

The Asutuare Junction - Volivo Road (28.3 km), Dufor Adidome - Asikuma Junction (38.4 km) and Asutuare - Aveyime Road (24.0 km) have immediate impact over 5.4 million inhabitants, majority of whom live below the poverty line. The road traverses an area that is noted for its production of cassava, corn, tomatoes as well as cash and food crops for consumption and exports.

The current state of two of the roads if not improved shall result in the total deterioration of the road with the resultant prohibitive capital cost for a total rehabilitation and it social effects. The vehicle operating cost is high. Increased travel times on account of the bad state of the roads become disincentive to business


Key contacts

WADDA Mam Tut - RDGW4


Estimated Cost

Amount
 75,000,000