The World Bank
   Transport Sector Improvement Project (P151026)




                                                                                 REPORT NO.: RES32210

                                    DOCUMENT OF THE WORLD BANK




                                         RESTRUCTURING PAPER
                                                  ON A
                                  PROPOSED PROJECT RESTRUCTURING

                                                      OF

                             TRANSPORT SECTOR IMPROVEMENT PROJECT
                                      APPROVED ON JUNE 6, 2017
                                                      TO

                                         MINISTRY OF FINANCE


TRANSPORT & DIGITAL DEVELOPMENT

AFRICA




                          Regional Vice President:     Makhtar Diop
                                 Country Director:     Henry G. R. Kerali
                   Senior Global Practice Director:    Jose Luis Irigoyen
                      Practice Manager/Manager:        Benedictus Eijbergen
                               Task Team Leader:       Petrus Benjamin Gericke
           The World Bank
           Transport Sector Improvement Project (P151026)



I. BASIC DATA

Product Information

Project ID                                                     Financing Instrument
P151026                                                        Investment Project Financing

Original EA Category                                           Current EA Category
Partial Assessment (B)                                         Partial Assessment (B)

Approval Date                                                  Current Closing Date
06-Jun-2017                                                    30-Jun-2023




Organizations

Borrower                                                       Responsible Agency
Ministry of Finance                                            Ministry of Transport,Ministry of Roads and Highways



Project Development Objective (PDO)
Original PDO
The Project Development Objectives are to: (i) reduce travel time on selected parts of the classified road network in
Northern Ghana, (ii) promote road safety, and (iii) strengthen the institutional management of the transport sector.
Summary Status of Financing


                                                                                        Net
Ln/Cr/Tf                 Approval         Signing Effectiveness          Closing Commitment Disbursed Undisbursed

IDA-60810              06-Jun-2017                                   30-Jun-2023        150.00           0        153.80


Policy Waiver(s)

Does this restructuring trigger the need for any policy waiver(s)?
No


II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES
       The World Bank
       Transport Sector Improvement Project (P151026)



1. This restructuring is to re-allocate funds from Component 3 to Component 1 following a re-allocation request from
Government, dated April 19, 2018, attached hereto. The re-allocation also requires the elimination of some activities
under the Component 3: Institutional Strengthening and Capacity Building due to the reduction of funding for this
component.

2. Current status: The project is yet to be signed and made effective. The Project has been making steady
implementation progress in the first 6 months since Board Approval. However, since late 2017, progress stalled as a
result of delays in signing of further contracts due to lack of funding expected to come from the main Project.
Activities funded from the PPA are progressing steadily.

3. As part of the Government’s loan agreement review process, Cabinet requested that the funds allocated under
Component 3: Institutional Strengthening, Capacity Building and Project Management be reduced by about 50% and
that such funds be reallocated to Component 1: Road Asset Preservation.

4. Impact on agreed activities: After the Cabinet request, the Bank team discussed with Implementing Agencies and
agreed on activities to be amended/dropped. These changes are reflected in the Withdrawal Table of the Amended
Financing Agreement.

5. The proposed restructuring of the project results in a simple reallocation of the proceeds of the Credit in addition to
the deletion of two activities specifically mentioned in the Financing Agreement. The activities to be amended in the
Project documents are as follows:
(a) eliminate the development of a National Multimodal Transport Master Plan.
(b) eliminate support for initial road reform recommendations; and
(c) eliminate implementation of National Transport Sector Database.
(d) reduce the budget for capacity building
(e) reduce the budget for road safety awareness campaigns;
(f)   reduce the budget for Project implementation support

6. No change to the Project Development Objective: Under the proposed restructuring, there will be no change to the
PDO. The Bank team has reviewed the proposed changes and confirms that they are in line with the project’s work
plan and do not affect the either the relevance or the achievement of the PDO.

7. No change in the Results Framework: The proposed re-allocation and changes in activities do not require a
change of the Results Framework.

The supporting documents, attached outside the Portal, includes the following Tables;
(i) Amendments to Withdrawal Table of the Financing Agreement, and
(ii) Amendments to the Estimated Cost Tables of the PAD (Tables 1 and 2).




III. DETAILED CHANGES
       The World Bank
       Transport Sector Improvement Project (P151026)



REALLOCATION BETWEEN DISBURSEMENT CATEGORIES

              Current
                                           Current        Actuals +   Proposed     Disbursement %
Ln/Cr/TF      Expenditure
                                        Allocation      Committed     Allocation     (Type Total)
              Category
                                                                                   Current Proposed