Document of
The World Bank
Report No: 25155-GH
PROJECT APPRAISAL DOCUMENT
ONA
PROPOSED LEARNING AND INNOVATION
LENDING (CREDIT)
IN THE AMOUNT OF SDR 3.70 MILLION
(US$5.0 MILLION EQUIVALENT)
TO THE
REPUBLIC OF GHANA
FOR THE
PROMOTING PARTNERSHIPS WITH TRADITIONAL AUTHORITIES PROJECT
March 10, 2003
Private Sector Unit
Africa Regional Office



CURRENCY EQUIVALENTS
(Exchange Rate Effective December 2, 2002)
Cun-ency Unit = Ghanaian Cedis
GHC 8,325 = US$ 1.00
US$ 0.0001201 = GHCl.00
FISCAL YEAR
January 1    December 31
ABBREVIATIONS AND ACRONYMS
AATC                     Akyem Abuakwa Traditional Council
AC                       Asantemnan Council
ARCC                     Ashanti Regional Coordinating Council
CAS                      Country Assistance Strategy
CDF                      Country Development Framework
CPAR                     Country Procurement Assessrent Report
CPPR                     Country Portfolio Performance Review
DPP                      Detailed Procurement Plan
ERCC                     Eastern Regional Coordmnating Council
FMR                      Financial Management Report
GARFUND                  Ghana Aids Response Fund
GIMPA                    Ghana Institute of Management & Public Admninistration
GoG                      Govermment of Ghana
GPP                      Global Procurement Plan
ICB                      International Corpetitive Bidding
IMF                      International Monetary Fund
ISSER                   Institute of Statistical Social & Economic Research
LIL                      Learning & Innovation Loan
MDU                      Manyia Development Unit
MIS                      Managemnent Information System
M&E                      Monitoring and Evaluation
MoF                      Ministry of Finance
NGO                      Non-Governmental Organisation
PIP                      Project Implementation Plan
PIU                      Project Implementation Unit
PPN                      Project Procurement Notice
PPOG                     Procurement Policy Oversight Group
PRP                      Procurement Reform Proposal
PTA                      Parent Teacher Association
QCBS                     Quality & Cost Based Selection
SBD                      Standard Bidding Document
SOE                      Statement of Expenditures
SPAM                     School Performance Appraisal Meeting
SPN                      Specific Procurement Notice
TA                       Traditional Authorities
TC                       Traditional Councils
TOR                      Terms of Reference
Vice President:      Callisto Madavo
Country Manager/Director:        Mats Karlsson
Sector Manager/Director:       Demba Ba
Task Team Leader/Task Manager           Kofi-Boateng Agyen



GHANA
PROMOTING PARTNERSHIPS WITH TRADITIONAL AUTHORITIES PROJECT
CONTENTS
A. LIL Justification                                                                                                        Page
1.  What is to be learned (why the piloting)? ....................................................................2
2.   How   are the results going to be used (vis a vis CAS objectives and any follow-on                                    2
operation)?
3.   Other countries or situations where similar efforts have shown promise ................................               3
B. Structure of the Pilot
1.   How   will the learning take place? ........................................................................3
2.   Outcome-level test to be conducted ........................................................................4
3.   Steps Involved in Implementing the Pilot ........................................................................4
4.   Learning Expectations to be Documented in the Pilot ..........................................................5
5.   Triggers for a Follow-on Operation ........................................................................6
6.   Results-based Monitoring and Evaluation Arrangements .....................................................            6
C. Components and their Implementation Arrangements
1.   Project components ........................................................................6
2.   Implementation arrangements ........................................................................8
a. Procurement .......................................................................                               10
b. Financial Management .......................................................................                      10
c. Other .......................................................................                                     11
D. Risks
1.   Social and Environmental Risks .......................................................................               11
a. Safeguard Policies .......................................................................                        12
b. Other social risks .......................................................................                        12
2.   Other Risks .......................................................................                                  12
E. Main Loan/Credit Conditions
1.  Effectiveness Conditions .......................................................................                      13
2.   Other .......................................................................                                        13
F. Readiness for Implementation .......................................................................                        13
G. Compliance with Bank Policies ........................................................................                      14
Annexes
Annex 1. Project Design Suyary .15
Annex 2. Project Description .20
Annex 3. Estimated Project Costs .23
Annex 4. Financial Management .24
Annex 5. Project Processing Schedule .27
Annex 6. Procurement and Disbursement Arrangements .29
Annex 7. Documents in the Project File .38
Annex 8. Statement of Loans and Credits .39
Annex 9. Country at a Glance .41



Annex 10. Primary Schools to be Rehabilitated ....................................................................   43
Annex 11. Traditional Authorities Organizational Structure - Asanteman Council .....................  45
Annex 12. Traditional Authorities Organizational Structure - Akyem Abuakwa Traditional              46
Authority



GHANA
Promoting Partnerships with Traditional Authorities Project
Project Appraisal Document
Africa Regional Office
AFTPS
Date: March 10, 2003                             Team Leader: Kofi-Boateng Agyen
Sector Manager/Director: Demba Ba                Sector(s): Other social services (50%), General industry
Country Manager/Director: Mats Karlsson          and trade sector (25%), Health (25%)
Project ID: P071399                              Theme(s): Other human development (P), Other financial
Lending Instrument: Learning and Innovation Loan  and private sector development (S)
(LIL)
] Loan    [Xg Credit   [ ] Grant    [ ] Guarantee   [ ] Other:
For Loans/Credits/Others:
Amount (US$m): 5.00 equivalent
Proposed Terms (IDA): Standard Credit
Grace period (years): 10                        Years to maturity: 40
Commitment fee: 0.50%                            Service charge: 0.75%
BORROWER                                                      0.50           0.00          0.50
IDA                                                           3.66           1.34          5.00
Total:                                                        4.16           1.34          5.50
Borrower: GOVERNMENT OF GHANA
Responsible agency: ASANTEMAN COUNCIL SECRETARIAT
ASANTEMAN COUNCIL
Address: MANHYIA DEVELOPMENT UNIT, MANHYIA PALACE, P.O. BOX 285, KUMASI, GHANA
Contact Person: MR. K.K. MENSAH
Tel: 233-20 8111791, 233-51 37462, 38774       Fax: 233-51 38774           Email:
cpptap(@ africaonline.com.gh
Other Agency(ies):
AKYEM ABUAKWA TRADMTIONAL COUNCIL, KYEBI AHENFIE SECRETARIAT, KIBI-E/R, GHANA
Address: PMB 109, CANTONMENTS, ACCRA, GHANA
Contact Person: Dr. Angela Ofori-Atta
Tel: 233-21 255453          Fax: 233-21 255455           Email: angielamn@africaonline.com.gh
Estimated Disbursements ( Bank FY/US$m):
Annual      0.20      2.50       1.80      0.50
Cumulative     0.20      2.70       4.50      5.00
Project implementation period: 3 years
Expected effectiveness date: 06/15/2003  Expected closing date: 06/30/2006



A. LIIL JustificaVlorn
1. What is to be Learned (why the piloting)?
The main purpose of the LIL is to test in a limited number of areas approaches to:
(i) substantively integrate and improve deprived remote and rural communities' involvement in
development activities; and
(ii) help focus the contributions/influence of Traditional Authorities (TA) in socio-economic
development.
Traditional Authorities refer to community-based, traditional local governance bodies, which are
recognized by the laws of Ghana, exercising their customary authority over local communities.
These traditional authorities are paramount chiefs, chiefs, queenmothers, and headpersoris of
these communities. Groupings of these traditional authorities for a particular area, region, or
kingdom constitute the traditional councils (TC). These groups/communities are headed by a
chief. These councils (organizational charts in Annexes 11 and 12) have secretariats which serve
as the administrative body of the group. The operations of the secretariat are financed with,
among other things, revenues from the sale of the community land, and royalties from mining
activities.
The proposed LIL will test enhanced roles that these chiefs, queenmothers and other community
leaders should play in:
(i) the decentralization efforts of central government;
(ii) the control of the spread of diseases such as HIV/AIDS;
(iii) closing the gap in the provision of, among other things, improved health, and equitable and
quality basic education (including the rehabilitation of existing classrooms) in deprived rural and
remote areas; and
(iv) determining the role of cultural heritage preservation in the socio-economic development of
a community. Activities under the proposed project will pilot the changing role of the traditional
authorities in development issues in two regions in Ghana.
2. Hlow are the results going to be used (vis a vis CiS objectives and any cIIow-on operation)?
Document number: 20185-GH      Date of latest CAS discussion: 03/30/2000
The proposed project is consistent with the Bank's Country Assistance Strategy of March 2000
and the goal of assisting the Government of Ghana (GoG) implement its Poverty Reduction
Strategy more effectively.
The proposed project supports this objective through:
(i) strengthening traditional authorities' capacity to keep track of the communities' human
resources for development;
(ii) enhancing the capacity of the traditional authorities to provide health information in the fight
against HIV/AIDS and other endemic diseases;
(iii) identifying and testing collaboration arrangements of traditional authorities and their
communities in the rehabilitation of education infrastructure and the provision of other inputs to
improve access to quality basic education and health services; and
-2 -



(iv) awareness creation on cultural heritage preservation.
The lessons learned would serve as a basis to design approaches which can be replicated and
which would ensure that traditional authorities and their communities participate in development
activities and enable the government to reduce development expenditures to sustainable levels.
The results would be used to help address the problem of inadequate government funding for
development and to foster a more sustainable relationship between the government and
traditional authorities. Government spending on the social sectors is estimated at about one-third
of total annual national budget allocation. However, government financing is used mainly to pay
wages and salaries and relatively little for capital investment. The results of the pilot would also
be used to strengthen mechanisms which promote partnerships between government and civil
society, an objective that would facilitate increased involvement by the Bank and other donors in
the social sectors.
3. Other countries or situations where similar efforts have shown promise.
Private provision of health and education services (both on a not-for-profit and a for-profit basis),
has complemented government efforts and continues to grow. For example, clinics operated by
the Christian and Muslim communities provide over 30 percent of health care in Ghana. Almost
50 percent of health care in Ghana is delivered by the non-public providers. In South Africa,
there are a number of traditional authorities which have formed joint-venture partnerships with
both public and private organizations to drive development in their communities. Examples of
these development-oriented partnerships are found in the Mankwe Region, the Kingdom of
Bafokeng, and the Mpungose Traditional Authority.
B. Structure of the Pilot
1. How will learning take place?
In Ghana, the notable contributions of traditional authorities in the provision of educational
opportunities and desirable health outcomes have been reduced considerably over the last few
decades due to institutional decay and the general decline in economic activity in the country.
Traditional authorities who continue to be custodians of community land, and repositories of the
communities' cultural heritage, face the challenge of upholding traditional practices in the
modern era and making the institutions relevant to current societal needs. For example, their
position as leaders in times of war and as judges during peaceful times has changed. Traditional
authorities are now expected to rule by example, govem within the local govemment system, and
also lead efforts to develop the community with minimal reliance on govermnent budget. The
potential of these traditional authorities as key stakeholders in partnering development is once
again being recognized largely because a number of them continue to make decisive
contributions to their communities.
The government is seeking ways to ensure sustainable changes in the state's role in development,
and this would be an opportunity to look to place greater reliance on resourceful civil society
organizations such as the traditional authorities. This pilot project would also be a test of the
- 3 -



government's ability to convince deprived rural communities of its commitment to bringing
social and economic development to their areas in partnership with the communities.
Under this pilot, learning will take place by documenting the response of traditional authorities
(there are over 300 in the communities identified for this pilot) to capacity-building activities
and enhanced advocacy roles. The pilot will also document the traditional authorities' material
and other contributions to the provision of social services  and to the government's
decentralization activities. An assessment of the role of traditional authorities in development
activities will be carried out at the beginning of the project, and a monitoring and evaluation
(M&E) plan will be put in place to track the experiences under the pilot. The success of the
project would be determined by the number of traditional authorities (i.e. the number of chiefs,
queenmothers, traditional headpersons of the towns, villages, hamlets in the pilot communities)
which will play a more effective role in educational, health, private sector collaboration and other
developmental activities, through financial, and in-kind resource contributions.
Success would also be measured by the financial and other support provided by the traditional
authorities to community volunteers trained under the project to help create awareness; the
percentage of community members demonstrating increased awareness of health issues;
increased enrollment in primary schools; achievement results of primary school pupils; increased
number of teachers in the selected communities up to the full complement; financial and other
assistance to teachers in deprived rural and remote areas, the development of
business/community development plans, promotional activities and awareness creation on
cultural heritage preservation/cultural heritage-focus cottage industries, and increased effectiveness
of the traditional law courts system.
2. Outcome-Revel test to be conducted
The project will test whether traditional authorities contribute significant financial, human and
other resources towards their communities' social and economic development in response to the
provision of external resources for rehabilitation of education infrastructure, health awareness
programs, and strengthening of technical support in their development units (increased
enrollment in primary schools, institution of incentive schemes to retain teachers' in rural and
deprived areas, increased awareness on health matters, increased awareness on environmental
degradation, etc.). A comparison of traditional authority financial and other contributions in
education, health, decentralization, and cultural heritage preservation will be made before and
after the project interventions.
3. Steps involved in conducting the pilot
The towns and villages of the Asanteman Council (AC), and Akyem Abuakwa Traditional
Council (AATC) -in southem and middle Ghana, respectively- will serve as the pilot areas under
the project. These traditional councils are groupings of traditional authorities (i.e.chiefs, and
queenrothers of towns, villages, hamlets) that are recognised by the laws of Ghana, and are set
up to, among other things, forge a conmmon development agenda in their areas of influence/rule.
The traditional heads of these two pilot areas are already embarked on community development
-4 -



activities in the following sectors: (1) The Asanteman Council is involved in health - HIV/AIDS
awareness programs, education - scholarship schemes to support needy citizens, cultural heritage
preservation, and private sector development; (2) The Akyem Abuakwa Traditional Council, is
also involved in health and cultural heritage-environmental activities. Of particular note is the
annual HIV/AIDS awareness day this council holds in the capital of this traditional area every
December, and the environmental brigade this council has set up to assist in the protection of
forests in the Akyem Abuakwa area. The pilot will be carried out by (a) strengthening the
development units/secretariats of the two key traditional councils; (b) identifying and developing
programs to help build the traditional authorities' capacity in the government's decentralization
efforts, (c) measuring baseline participation levels of rural communities/traditional
authorities!lead traditional authority in component sectors, (d) developing a more robust
monitoring and evaluation system which will include enhanced indicators for comparing with the
baseline annual reviews, (f) analyzing and reporting on findings, (g) identifying and documenting
successful approaches for involving traditional authorities in community development in a
manner which is sustainable.
4. Learning expectations to be documented in the pilot
FI Economic   L Technical     Z Social      0 Participation
] Financial   Z Institutional  Z Environmental FII Other
Social and Environmental: The project will provide support to educate traditional authorities and
their communities on socially-acceptable alternatives to traditional practices in order to create
awareness and improve the health status of communities. These initiatives should lead to a
reduction in HIV/AIDS infections, and the incidence of other infectious diseases. The Ministry
of Health has -good baseline data on the subject Provision of education to children and training
for chiefs, queenmothers and their development units would improve the basic literacy, numeracy
skills of households; planning and implementation skills of traditional authorities for local
development including environmentally sustainable ways of utilizing community resources.
Participation: The project will rely heavily on the participation of paramount chiefs, chiefs,
queenmothers and other members of the pilot communities. The key paramount chiefs would-
provide leadership and additional financial and human resources in the process of improving
enrollment in primary schools, while the community chiefs and other members will provide
assistance in the rehabilitation of existing primary schools on original sites, creation of awareness
on health issues, and sustainable use of the communities' cultural heritage resources. The existing
village unit committees will be strengthened and work with the project staff, in monitoring
implementation on a regular basis, and also propose improvements to implementation.
Institutional: The project relies on and strengthens the chieftaincy institution so that it plays an
expanded role in improving access to primary school education for their subjects, enhancing
awareness creation on health matters in their communities especially the rural and remote ones,
and increasing their participation in the government's decentralization efforts. The effectiveness
of these traditional authorities and their supporting development units/secretariats will be
documented under the LTr to gauge the facilitation role they play in partnering with government
to reduce poverty and also provide good governance.
- 5 -



S. Triggers for a folow-on operation
A follow-on would be justified if:
o   RHV/AIDS awareness risk rates and primary school enrollment rates are significandy
increased in the pilot communities; and
o   there are substantive improvements in traditional authority contribution (for example,
financial contributions, increased participation in community activities, etc.) to the provision
of education infrastructure and education 'software', and participation in government's
decentralization efforts.
6. Results-based Monitoring and Evaluation System
Monitoring will be done by the delivery of inputs and project outputs, as measured by the goods
and services delivered to beneficiaries, and the extent to which the project's objectives are
achieved. In order to strengthen the capacity of the traditional authorities to carry out monitoring
and evaluation, support will be provided to develop a monitoring and evaluation plan, including
the provision of training activities. Staff of the project implementation units in the pilot
traditional authorities' Secretariats will coordinate the collection, coordination, transmission, and
reporting of data from the partner Ministries, the pilot communities and the traditional
authorities.
In addition to the monitorable indicators outlined in Annex 2, the support referred to above and
the proposed management information systems (MIS) would be utilized in the development of a
robust monitoring and evaluation (M&E) system. Evaluation would be on a continuing basis, and
would include reviews during implementation support missions, quarterly progress reports and
external reviews. Lessons learned would be incorporated in the partnership manual which is to be
funded under the project.
C. ProJect Componentos and lngmplen2ttaon Arrangeomnts
1. L1IL Components
Traditional authorities and communities represented by the Asanteman Council, and those
represented by the Akyem Abuakwa Traditional Council will serve as the pilot regions under the
project. The sectors for which IDA support was requested by the traditional authorities through
the GoG and the specific areas for the support are summarized below.
(A) Health:  The proposed project seeks to strengthen the capacities of the traditional
authorities (chiefs, queenmothers, and village headpersons) and communities in the Asanteman
Council areas, and the Akyem Abuakwa Traditional Council areas to effectively participate in
activities to improve health and fight HIV/AIDS in their communities. This would be done
through regular workshops and seminars for the traditional authorities, community volunteers
and community members. The activities to be supported would focus on building the capacities
-6 -



of the traditional authorities in the area of basic health, particularly factors that cause ill health as
well as on HIV/AIDS. Capacities of these traditional authorities would also be strengthened to
enable them to provide better assistance to communities and households to ensure improved
health through prevention and care. Community health registers would also be designed and
instituted in the project communities.
AC (US$0.27M); AATC (US$0.15M).
(ii) Education:    This component would focus on (a) the provision of resources for
rehabilitating basic primary education facilities in select rural and deprived areas in the AC
community and (b) design of a partnership method between traditional authorities and
government in the provision of quality basic education. The traditional authorities constituting
the Asanteman Council have identified improvements in basic education in rural areas as a goal
in their community development agenda and have on their own initiative begun setting up
mechanisms to achieve this goal.
IDA support is therefore being sought to assist in identifying a more structured and sustainable
method of partnership with government to help improve access to quality basic education in the
Asanteman Council areas (schools are open to all residents irrespective of regional origin and
hence benefits are intended for all residents). Assistance will also include support to improve
traditional authorities incentive schemes with the objective of retaining teachers in these remote
areas, scholarships schemes for primary school pupils, and improved enrollment.
The project will also support the strengthening of the Akyem Abuakwa Traditional Council's
Secretariat to assist this group of traditional authorities review the state of basic education in
their communities and propose actions to improve it.
AC(US$2.90M); AATC (US$O.1OM)
(iii) Capacity Building : The project would seek to improve (a) the financial and
management capabilities of the two councils' respective secretariats and (b) the capacities of the
traditional authorities who are members of these two councils, on decentralization and
community development issues.
A monitoring and evaluation system would be established to ensure feedback on project
implementation, monitorable indicators and other administrative issues is readily available. An
integral component of the LIL will be regular monitoring and evaluation. Both quantitative and
qualitative techniques will be employed in tracking the project indicators (inputs, processes,
outputs effects and impact) as indicated in the project logical framework.
The MIS to be established in the secretariats/development offices would be utilized to facilitate
the flow of information. This will enable the project team to efficiently apply "lessons learned" at
the earliest possible opportunity, continually assess progress toward objectives and goal, and
respond efficiently to information needs of stakeholders. Baseline data to measure performance
will be gathered where possible. In this regard pre and post tests will be conducted as one key
- 7-



activity of training programs to establish knowledge levels on project output indicators before
and after training programmes. This will also be supported with focus group discussions at
community levels. Monitoring and evaluation consultants will be engaged to, among other
things, ensure that valid reliable data is gathered. This will also ensure that M&E results are
incorporated in all activities to maximise the achievement of project goals and objectives.
Review meetings and the periodic and specialised reports will be some of the ways that results on
progress and achievements will be disseminated.
AC (US$0.64M); AATC (US$0.20M).
(iv) Cultral JHeriia: Support would be provided to both councils to improve their
communities' ability to carry out programs that would help them to preserve and benefit from
their cultural heritage; through,  for example, the    development of educational
activities/curriculum in schools on cultural heritage, linkages to environmental degradation,
private sector-community business partnerships to set up for example, eco-tourism projects.
Support would also be provided for updating the inventory of cultural heritage
artificats/practises. This component would also seek to assist traditional authorities review the
operations of the traditional law courts system with the view to reducing the incidence of
chieftaincy disputes, land litigation, etc. The study will serve to, among other things, identify
needs for revision, codification, and dissemination of traditional laws, and identification of ways
to increase the accessibility and effectiveness of traditional law courts.
AC (US$0.24M); AATC (US$0.1OM)
1>g ! ~~-., J -~                 - '- "-V '!'. r 4| j' ? i'| --
-.       -     r,  t  S  4 -  j'C ~--.-  -;;-_; --j-,-'-r               ^  
;~~~~~~~~ .,,vJ                >     Jg1 S _ .* J$  ~ -=-   ¢ .  = trl
Health                                            0.48       8.7     0.42       8.4
Education                                         3.30      60.0     3.00      60.0
Capacity Building                                 0.93      16.9     0.84      16.8
Cultural Heritage                                 0.39       7.1     0.34       6.8
Unallocated                                       0.40       7.3     0.40       8.0
Total Project Cost                                           0.0     0.00       0.0
Total Financing Required                                     0.0     0.00       0.0
Totes Project costs  5.50   100.0     5.00     100.0
Total IFlnmenring iRequinred  5.50  100.0    5.00     100.0
2. Implementation Arrangements
In view of the partnership and decentralization goals of this pilot, the project will be
implemented by the Asanteman Council and the Akyem Abuakwa Traditional Council which are
responsible for the implementation of the project components in their respective areas and have
set up project implementation units within their traditional structures. The Councils will report to
the GoG and IDA on the progress of implementation of their components.The Government of
Ghana (GoG), through the Ministry of Finance (MoF), would oversee implementation. The
- 8 -



Government will ensure that the TA maintain policies and procedures that enable them to
implement the project. As discussed below, representatives of the Ministries of Education and
Health will participate in the committees established by the Traditional Councils to provide
guidance to the Councils on project implementation. The Government - through the Ministry of
Finance will review the results of the monitoring and evaluation system with a view to designing
future programs of support, and oversee and coordinate the activities of the implementing
agencies with the assistance of the project managers.
(i) Asanteman Council sub-component: The council has established a Project Implementation
Unit (PIU), called the Manhyia Development Unit (MDU), within its secretariat which is charged
with the day to day implementation of the project. This implementation unit is managed by a
project manager who reports to the traditional head of the communities in the region and includes
a project accountant and a procurement specialist. The staff are experienced and have already
carried out work under other Bank-assisted projects and participated in the preparation of this
L1L.
The MDU will carry out procurement, financial management, and project monitoring as indicated
below. The Asanteman Council has also established an Oversight Committee which is made up
of a representative each from the Ashanti Regional Coordinating Council (ARCC) representing
central and local governments, the Traditional Council (TC), the Regional Directors of
Education, and Health, and the manager of the MDU. This committee will provide guidance and
policy direction for project inplementation and monitoring of the partnership process. The MNDU
will report on project status on a quarterly basis to the AC and the Ashanti Regional Minister (the
government's representative in the region). The MDU will implement and coordinate all
activities under this sub-component, and will contract out all assignments and activities, and
follow-up and report regularly on progress to the GoG and IDA.
During project preparation and appraisal the government and the AC requested the Bank to fund
the initial cost of some equipment such as computers and three key personnel to be engaged by
the Secretariat, to help them reorganize the MDU in the secretariat of AC, bring in
professionalism and effective management practices to the unit to achieve the development goals
of the Council. This unit will also be responsible for the management and implementation of the
Asanteman sub-component of the Partnership project. To ensure that the team was in place and
worked with the Bank team, it was agreed that the key staff be engaged by June 1, 2002. The
staff was competitively selected.
The startup costs of the MDU and the initial set up costs for the Akyem Abuakwa Traditional
Council would therefore require retroactive funding for expenditures incurred between June 1,
2002 and the date of Credit signing and for an amount not to exceed SDR 300,000 equivalent.
Funding for the initial set up costs, including the engagement of a firm to carry out the
responsibilities of the Akyem Abuakwa Council's P1U was included in the retroactive financing
amount stated above.
(ii) Akyem Abuakwa Traditional Council sub-component The secretariat (office of
administration) of the Akyem Abuakwa Traditional Council, will have the responsibility for the
-9-



day to day implementation of this sub-component. This council has selected a firm with
adequately qualified personnel in project management, financial management and procurement to
be based in this secretariat and will serve as the implementation unit under this sub-component.
The project manager will report to the head of this council. The unit will contract oiat all
assignments and activities, and will monitor, follow-up and report regularly on progress lo the
Council, which will submit progress reports to the GoG and IDA.
The council has an advisory body (Mentors group) made up of academicians, regional and local
government representatives, including the Ministry of Health and other professionals. The
Mentors' group will have direct oversight responsibilities, provide guidance and advice in the
implementation of this sub-component.
Implementation will be based on annual work programs and budgets prepared by the project
implementation units and approved by the oversight committees for the respective TC. The TC
and government representatives, supported by the respective development units/secretariats will
conduct with IDA, quarterly project implementation support reviews in the first two years of
implementation and then semi-annual reviews in the third year of implementation. The
Government will ensure that the TA maintain policies and procedures to monitor and evaluate
their respective sub-components on the periodic basis indicated above and document progress in
accordance with the Project Design Summary (PDS) (Annex 2), the respective Project
Implementation Manuals and the monitoring and evaluation system proposed to be financed
under the credit. The financial management reports (defined in Annex 4) covering project
implementation status will be provided to IDA and the GoG no later than 45 days after the end of
each quarter. The respective development units will also submnit quarterly monitoring and
evaluation reports beginning in the second quarter after Credit effectiveness.
a. Procurement
The Manhyia Development Unit (MDU) for the Asanteman Council and the implementation
unit in the secretariat for the Akyem Abuakwa Traditional Council will each be responsible for
procurement planning, implementing procurement and processing of works, goods and service
contracts for their sub-component of the project. These units will track the accumulation of
contracts under each procurement method and will consolidate the informnation so as to ensure
that the aggregate amounts under the non-international competitive bidding (ICB) procurement
methods are not exceeded. Details of procurement planning arrangements are provided in Annex
6.
b. Financial Management
The Manhyia Development Unit (MDU) will perform the day- to-day management of the
Asanteman Council sub-component and will be responsible for the financial management aspects
under this sub-component. The accounts unit of the AC Secretariat, would independently
maintain adequate financial management systems to properly record all accounting transactions
(sources and uses), maintain satisfactory books of accounts, and produce satisfactory financial
reports on project activities. A financial assessment was carried out for this project, and (i) the
Asanteman Council's Secretariat's financial management systems were found to be adequate for
the purposes of managing the project; and (ii) the Secretariat of the Akyem Abuakwa Traditional
- 10-



Council's financial management system were found to be unsatisfactory for the purposes of
carrying out the proposed project and will be required to be properly set up and strengthened to
meet the Bank's minimum financial management requirement prior to disbursement of any funds
under the AATC sub-component. This Council has recruited a qualified firm to assist it in
meeting this requirement. The Bank will review the financial management system to ensure that
the proposed accounting system and procedures put in place are adequate and meet the World
Bank's financial management requirements.
The financial statements and all financial reports including the financial monitoring reports
(FMRs) will be prepared by the implementing units, and audited by independent auditors
acceptable to the Bank. The audit shall also cover the special accounts (SA) and statements of
expenditures (SOEs) used under the project. Details of financial management arrangements,
disbursements, SA operations, reporting and audit requirements are included in Annex 4.
c. Other
A monitoring and evaluation system will be financed under the project, and the system will be
monitored by the MoF and the village/town development committees in collaboration with the
district assemblies and needed technical assistance.
D. Risks
1. Social and Environmental Risk
There will be no significant environmental and social risks emanating from implementation of
activities under the proposed project. Since the proposed project will not finance any large scale
infrastructure investments such as the rehabilitation or new construction of hospitals, roads, and
clinics, no significant environmental and social risks are expected.
The project would provide resources for civil works only for the rehabilitation of existing
primary school buildings on the original sites, and no new school block constructions would be
undertaken. However, if the Borrower decides during project implementation to construct a new
classroom block, project-specific environmental and social assessments acceptable to the Bank
would have to be undertaken prior to any construction.
Within the pilot communities, the role proposed for the traditional authorities is neither new nor
would it be perceived by the community as unbecoming and perhaps lead to clashes and the
destoolment of the traditional authorities with the consequent social upheaval. Enstoolment and
destoolment of traditional authorities in the pilot communities is also immune from political
influences, and therefore social risks as a result of this project would be negligible. Additionally,
these communities have long-established and tested conflict-resolution mechanisms that would
be available to resolve any potential conflicts.



a. Safeguaird Poleices
No safeguard policies will be triggered as a result of the proposed LIL.
Environmental Category: C (Not Required)
b. other Social Eisks
2. Other (external, reflectng the failure of the assumplons in the fourth colunm  of Annex Ii)
z r_ '~RIsk       -             RId Ri$1t1l1ngj  l R ;-b   OtDgatIbn Ciaouire
From Outputs to Objective
l.Traditional authorities do not remain  M         Pilot conmmunities have been an integral part of
commnitted to methodology.                         the preparation process and have subjected the
methodology to extensive discussions before
finalizing it.
2. Chieftaincy disputes.                  M        Pilot communities were selected on the basis
on the prevailing stable conditions, and the
active involvement of the whole community in
the program and the top chief, who would
ensure that there are no derailments.
3.Traditional heads and community         M        Personalities involved have an agreement
members do not remain motivated to                 (pact) with their top chief to remain committed,
participate in program.                            which is in line with practices of the chiefancy
institution.
4.Pilot communities do not identify and   S        Risk will be offset by strong support for the
invest resources for improvement in                project from key stakeholders.
health and education.
5. New set of key, committed and          M        There is strong support for grassroots
resourceful Traditional Authorities/               development with traditional authonties in the
communities cannot be identified.                  lead.
6.Qualified Borrower Implementation       S        TA committed to engage additional qualified
team is not engaged.                               project staff and to provide improved regular
training for existing secretariat staff.
From Components to Outputs
1. Traditional Authorities not committed  M        Pilot traditional authorities already
to productive partnership with                     implementing development activities, and
government in the development of the               additional government support is seen as a
education and health sectors.                      bonus.
2.Traditional Authorities do not provide  M        same
adequate and timely resources.
3.Communities are not supportive of       N        same
efforts of traditional authorities.
4. School Performance Appraisal           M        Min. of Education has agreed to initiate
Meeting (SPAM) is not initiated in                 SPAMs where they do not exist.
community.
5. Schools in the pilot areas are        M         Ministry of Education in the pilot districts are
adequately not staffed.                            aware of this pilot and are working to provide
- 12-



teachers and educational materials where there
are shortages.
6. Parent Teacher Associations (PTA) are   M        Village development committees will be
not strengthened or initiated.                      strengthened and or initiated where they do not
exist.
Overall Risk Rating                        M
Risk Rating - H (High Risk), S (Substantial Risk), M (Modest Risk), N(Negligible or Low Risk)
E. Main Loan Conditions
1. Effectiveness Condition
1. Legal Opinion from Government
2. Disbursement Conditions:
For the Akyem Abuakwa Traditional Council Sub-Component (on excentional basis)
- Adoption of a project implementation manual.
- Open Project Account with a fixed initial deposit.
- Setup of a financial management and accounting system satisfactory to IDA;
- Furnish to the Association a procurement plan for the first twelve months of carrying out of
its activities under the Project.
2. Other (classify according to covenant types used in the Legal Agreements.)
- The Asanteman Council and Akyem Abuakwa Traditional Council to maintain project
implementation units with qualified staff.
- Project accounts audited by auditors with qualifications and experience satisfactory to IDA
(auditors already appointed)
F. Readiness for Implementation
a 1. a) The engineering design documents for the first year's activities are complete and ready for the
start of project implementation.
3 1. b) Not applicable.
3 2. The procurement documents for the first six months' activities are complete and ready for the start
of project implementation; and a framework has been established for agreement on standard
bidding documents that will be used for ongoing procurement throughout the life of LIL
3. The LlL's Implementation Plan has been appraised and found to be realistic and of satisfactory
quality.
0 4. The following items are lacking and are discussed under loan conditions (Section G):
Given the level of preparation and the capacity of the Borrower's project preparation staff, the
above schedule is reliable.
- 13-



0  1. This project complies with all applicable Bank policies.
O 2. The following exceptions to Bank policies are recommended for approval. The projea complies
with all other applicable Bank policies.
4      i,                   %4.ts Xaj!j3eb
'r819' LeaCar                a6ct§r Manego?              C§uFvrr Mvanagor



Annex 1: Project Design Summary
GXA4UA: Promoting Partnerships with Traditional Authorities Project
Key Performaice, -   ata Qollection Strategy r  L
jfllrarchy of Obiecr[Nevsr  Indicators                              r -t -  tical AssUmptionst '-
Sector-related CAS Goal:  Sector Indicatoro:  Sector country reporto  (from Goal to Bank Mission)
Government strategy of  'Partner' traditional  WBAIMP statistics.  Sustainable improvement
improved social sector  authorities contribution                 in school enrollment in
development efficiently  to health information  Mm. of Health Annual  deprived conimunities
implemented on the    access, and quality basic  Reports.
ground                education in depnved
areas. increased by at  Mm of Education report
least 1% of total
govemment expenditure ISSER annual report
on health & education)
witfin 2 years of LUL  Government's Annual
closing               Budget
Policy guidelines on                        Sustained reduction in
community participation                     number of persons
instituted                                  reporting illnesses in
depnved commumuities
Follow-on Development
Objective:
Effective implementation                                          Macroeconomic stability
of government strategy of
reducing hard core
poverty on the ground.
Project Development   Outcome I Impact      Project reports:      (from Objective to Goal)
Objective:            Indicators:
Test approaches to    Methodology used in at  Quarterly Project report. Sustained government
substantively integrate  least 2 other comrnunities               commitment to reducing
and improve traditional  within the nation by end  Annual Surveys.  poverty and political will
authonties involvement  of project                                to fostering partnerships.
and help focus their                        Ministry of Health &
contributions in                            Ministry of Education
socio-economrc                              reports
development in their
communities                                 Development plans of
traditional authonty
-15 -



Output from each      Output Indicators:     Project reports:      (from Outputs to Objective)
Component:
1. Methodology        1.L At least 50% of    Project KIS and       Traditional authorities
identified and validated  Traditional leadership in  Beneficiary Assessments committed to
pilot districts participate                  methodology.
in the enhancement of  Mid-term and end of
basic health and fight  project evaluation   Absence of Chieftaincy
against HIV/AIDS     Reports                disputes
1.2 50% of activities
carried out by Traditional                   Traditional heads and
Authorities include   Quarterly progress     community members
HIV/AIDS and health   reports                remain motivated to
issues by end of project.                    participate in program
1.3 At least 50% of   Annual Audited accounts
traditional leadership in
pilot districts participate  Economic development
in the enhancement of  reports
primary school enrolment
and retention rates by end
of project.           Annual Enrollment
1.4 At least 10 %     Statistical Census
increase in girls     conducted by MOE
enrolment/completion
rates in basic education
by end of project     Teacher attendance
1.5 20% increase in   records in selected
teacher attendance in  schools
selected schools by end
of project.
2. Capacity building program 2.1 Traditional leaders               Pilot communities
implemented           participate in minimum                       identify and invest
of 4 community                               resources for
development training                         improvement in health,
programs by end of                           education, other sectors.
project.
2.2 All community
volunteers in the pilot
districts participate in
health and education
specific training
programs.
2.3 Community
development /business
-_16 -



plans developed.
2.4 Formal
communication lines
established between
traditional authorities,
and MDAs by end of
project.
3. Replication/scaling up 3.1. Area and sector                   New set of key,
method and guidance   specific scaling up                        committed and
manuals developed and  methods and manuals                       resourceful Traditional
disseminated          developed.                                 Authorities/communities
identified
3.2 Training on manual
use organized in two
other sectors besides
health and education by
end of project.
4. LIL Project        4.1 Project annual plans                   Qualified borrower
Management system     developed with                             implementation team
installed and operational participation of selected              engaged and working.
communities and
implemented.
4.2 Development
office/Project
management team in
place.
4.3 Monitoring and
evaluation system
developed and being
implemented by end of
year 1.
Project Components /  Inputs: (budget for each  Project reports:  (from Components to
Sub-components:       component)                                  Outputs)
1.1HlV/AIDS/Health    1.US$0.48M            Mid-term and end of   1. Traditional Authorities
Advocacy Modules /                          project reports       committed to productive
workshops/                                                        partnership with
training/outreach                           Supervision Mission   government in the
-17 -



activities                                    Reports                development of the
education and health
1.2Design Community                           Audits Reports         sectors.
Health Register/Planning
for Healthy Outcomes                                                 2.Traditional Authorities
provide adequate and
1.3 Periodic Public fora                                             timely resources.
3.Communities
supportive of efforts of
traditional authorities.
4. School Performance
Appraisal Meeting
(SPAM) is initiated in
community.
5. Schools in the pilot
areas are adequately
staffed.
6. PTAs are strengthened
or initiated.
2.1 Traditional        2.JLS$3.3@M            Min. of Education reports
Authorities' role in
schools' administration (
Scholarship schemes,
lands, enrollment drives,
etc) training module
2.2 School resources/
facilities and
rehabilitation plan
2.3 Survey/study - to
identify constraints to
enrollment, teacher
retention incentives,
baseline
3.1 Traditional        3. US$0D.93M           Mid-term and end of
authorities secretariats /                    project reports
MIS
Supervision Mission
- 18 -



3.2 Training needs                           Reports
assessment /training
program
3.3 Monitoring &
Evaluation system
3.4 Office
equipment/vehicles
/auditloperations.
3.5 Partnership Module
4.1 Cultural Heritage  4. US$0.39M           Mid-term and end of
Preservation                                 project reports
study/inventory of
artifacts                                    Supervision Mission
Reports
4.2 Traditional courts/
museums study
4.3 Cultural Heritage
curriculum
/multi-purpose center
study
- 19-



Annex 2: Datefled Pro<cac EesrlpUtan
GH=ANFA: Promnolng Partnerships wvKh Tradlitonal AuRhoitOes Project
This LIL will test whether traditional authorities contribute significant resources towards their
communities' social and economic development in response to the provision of external
resources. Traditional authorities (kings, chiefs, queenmothers and headpersons) and the
communities that constitute the Asanteman Council (AC), and those that constitute the Akyem
Abuakwa Traditional Council (AATC) will be the pilot regions under this LDL. These councils,
on their own initiative and under the leadership of their respective kings, who are also the heads
of these traditional councils have committed resources, although inadequate, to improving the
circumstances of their communities in the following areas:
(i) Asanteman Council: (US$4.OM)- Education, Health & HIV/AIDS, Cultural Heritage
Preservation and Capacity Building; and
(ii) Akyem Abuakwa Traditional Council: (US$0.5M)- HIV/AIDS, Cultural Heritage -
Environmental Protection and Capacity Building.
The project will therefore support interventions in these areas for which some work is already
on-going. The support will basically and essentially provide capacity building assistance to
traditional authorities in order that they would be able to identify sectors within their
communities which require development, be better able to identify sources of assistance from
internal and external sources, and be in position to access resources to develop their
communities. Except for the support allocated for the rehabilitation of dilapidated primary school
buildings, the two pilot traditional groups will all be supported as follows:
By Component:
Project Component 1 - US$0.48 million
Health : Despite the various strategies employed by government and non-governmental bodies to
reduce the spread of HIV/AIJDS, the infection rates in the pilot communities is reported by the
Ministry of Health to be increasing. In order to help contain the spread, this component would
test approaches on how to effectively bring in and utilize the chieftaincy institution. These
traditional authorities (Iings, chiefs, queenmothers, headpersons), if effectively supported, are
capable of playing a more significant role in the campaign to contain the spread of HIV/AJDS;
they can also lead an improved and sustained fight to help curb the menace of other public health
issues and infectious diseases that impact negatively on the communities productive capacities.
In collaboration with the regional and district health authorities, periodic but regular training
would be provided to the traditional authorities, both chiefs and queenmothers on HIV/AIDS,
basic health matters and family planning issues. Support would be provided for the development
of advocacy modules, which would be used by the traditional authorities, to educate target
groups in their communities, and also enhance their ability to identify sources of help for
improved health in their communities. Assistance would also be provided for the institution of
community health registers- a demographic and health database of the people in the communities.
The outreach activities under this component would include coordinating efforts in the pilot
communities and running innovative programs in prevention of HlV/AlDS and ill health and the
-20 -



promotion of behavior change. Mechanisms would also be established for sharing information
among all stakeholders.
AC (US$0.27M); AATC (US$0.15M)
Project Component 2 - US$3.30 million
Education: The total cost of this component is approximately US$2.80 million and the civil
works sub-component for the rehabilitation of primary school buildings will be implemented
under the Asanteman Council sub-component only. The main objective under this component is
to develop sustainable solutions to improve primary school enrollment in the pilot communities
given the resource contributions of traditional authorities. Therefore, under this component,
assistance would be provided for the rehabilitation of dilapidated and broken-down primary
school infrastructure, which have led to classes being held under trees in about 20 out of 40
remote and rural communities. A list of the communities which would have schools rehabilitated
is provided in Annex 10. These communities, led by their traditional authorities and the
community education committees would provide labor during the rehabilitation. Support would
also be provided for the development of training modules for traditional authorities in the
enhancement of educational opportunities for primary school age children, especially females in
rural areas. Support would also be provided to traditional authorities to identify ways to retain
teachers in these rural and remote communities. Surveys to identify the constraints leading to low
enrollments will also be financed. Basic management informnation systems would also be
financed to enhance information flow on education between central government, the district
assemblies, and the traditional authorities.The project will also support the strengthening of the
AATC Secretariat in order to assist this group review the state of basic education in their
communities and propose actions to improve it.
AC (US$2.90M); AATC (US$0.1OM)
Project Component 3 - US$ 0.93 million
Capacity Building: This component will seek to strengthen skills of staff working in the
secretariats of the traditional councils. This would include support for the engagement of key
project management staff for the duration of the project, development of community
development/business plans for the pilot communities, provision of vehicles and office
equipment, including hardware and software for setting up management information systems,
development of efficient financial management systems, establishment of lines of
communication with district assemblies, government agencies, and other traditional leaders.
Support would also be provided for the design of educational programs/curricula for traditional
authorities and funding for the identified capacity building requirements especially in the areas of
development and decentralization in order to improve the capacity to coordinate all development
initiatives in their communities and to also improve the chieftaincy institution. Support would
also be provided to further develop a monitoring and evaluation system that would, among other
things, document and validate the methodology for ensuring a sustainable partnership between
government and traditional authorities, assure timely feedback on project implementation
activities, and ensure monitorable indicators and other administrative issues are readily available.
Both quantitative and qualitative techniques will be employed in tracking the project indicators
- 21 -



(inputs, processes, outputs and outcomes) as indicated in the project logical framework. These
two methods will be employed for a complete and in-depth understanding of the issues involved.
The MIS to be established in the secretariats would be utilized to facilitate the flow of
information. This will enable the project team to efficiently apply "lessons learned" at the earliest
possible opportunity, continually assess progress toward project objectives and goal, and respond
efficiently to information needs of stakeholders. Monitoring and evaluation (M&E) consultants
will be engaged to, among other things, ensure that valid reliable data is gathered. This will also
ensure that M&E results are incorporated in all activities to maximise the achievement of project
objectives.
AC(US$0.64M); AATC(US$0.20M).
Project Component 4 - US$0.39 millon
CulmraI Hleritage: Support would be provided to both councils to improve their communities'
ability to carry out programs that would help them to preserve and benefit from their cultural
heritage; through, for example, the development of educational activities/curriculum in schools
on cultural heritage, linkages to environmental degradation, private sector-community business
partnerships to set up for example, eco-tourism projects. Support would also be provided for
updating the inventory of cultural heritage artificats/practises. This component would also seek to
assist the traditional authorities review the operations of the traditional law courts system with
the view to reducing the incidence of chieftaincy disputes, land litigation, etc. The study will
serve to, among other things, identify needs for revision, codification, and dissemination of
traditional laws, and identification of ways to increase the accessibility and effectiveness of
traditional law courts.
Asanteman Council (US$0.24M); AATC (US$O.1OM)
-22 -



Annex 3: Estimated Project Costs
GHANA: Promoting Partnerships with Traditional Authorities Project
Local       Foreign       Total
Project Cost By CQmponent              US $mSlfmon  US $millson  US $rnillon
Health                                                  0.40         0 08         0 48
Asanteman (US$0 27M)
Akyem Abuakwa (US$0 15M)
Education                                               3 10         0.20         3 30
Asanteman (US$2 90M)
Akyem Abuakwa (US$0. lOM)
Capacity Building                                       0.41         0 52         0 93
Asanteman (US$0 64M)
Akyem Abuakwa (US$0 20M)
0.25         0.14         0 39
Cultural Hentage
Asanteman (US$0 24M)
Akyem Abuakwa (US$0 IOM)
0 00         0 40         040
Unallocated
0,00         0.00         0,00
Incremental Operating Cost
Total Baseline Cost                                     4.16         1.34         5.50
Physical Contingencies                                 000          0 00         0 00
Price Conulngencles                                    0.00         0.00         0.00
Total Project Costs              4.16         134         5.50
Total Financing Required             4 16         1 34         5 50
Local       Foreign       Total
Project Cost By Catgory               US $mlllon   US $mIlj on  US $milbon
Goods                                                     0.12         0.41         0 53
Works                                                     2 80          0 20         3 00
Servlces & Training                                       1 11         0.33          1 44
Operating Cost                                            0.13          000         0.13
Unallocated                                               0 00         040          040
Total Project Costs     4.16          1.34         5 50
Total Financing RequIred     416           1 34         5.50
Identifiable taxes and duties ame 0 (US$m) and the tota project cost, net of taxes, is 5 5 (US$nM TIhefore. the poject cest shanng ai'o is 9091% of
total project cost net of taxes
- 23 -



Annan 4: IFinencDla Gnogement
GHANA Promoting Pnrtnerahlps with TmMltDonal AuthorltUa Pro$ect
lintiroduelton
The financial management arrangements for this LZI has been designed to ensure that the
systems of the pilot traditional authorities' councils, namely the Manhyia Development Unit
(MDU) within the Asanteman Council's Secretariat and the Akyem Abuakwa Traditional Council
Secretariat, are strengthened and assisted to perform the financial and accounting functions of
their respective Councils as well as their sub-components of the project.
The accounts unit in the MDU will have financial management responsibility for the AC's
component. The accounts unit within the Secretariat is now headed by a qualified accountant. He
is experienced and has worked on other World Bank funded projects in the past and is very
familiar with the Bank's disbursement procedures. The unit is in the process of recruiting the full
complement of accounts staff. The accountant has developed an accounting and financial
procedures manual to guide the financial operations of the project which meets the Bank's
financial management requirements.
The accounts unit of the Secretariat of Akyem Abuakwa Traditional Council will be responsible
for financial management of its sub-component. In line with the Bank's fiduciary requirements, a
financial management assessment was carried out and found to be unsatisfactory for the purpose
of managing the financial resources of its sub-component. The Bank has agreed with the
secretariat to recruit a qualified firm to perform the financial management and procurement
functions under their sub-component. The Bank will monitor the work of the firm to ensure that
the systems they introduce or put in place are adequate, satisfactory and meet the Bank's financial
management requirement. The Bank will also ensure that the firm selected has the right staff mix
to be able to carry out the above functions. The introduction of a satisfactory financial
management system will be a condition for disbursement.
Accounting Under the  oject
Asanteman Council (AC)
The accounts unit in the MDUI will maintain the required books of account under the project.
These books will be used to record all financial transactions undertaken by the project and
prepare all relevant financial reports to reflect these transactions. The unit will adopt an accrual
accounting system as basis for recording transactions and report on them accordingly. This unit
has developed an accounting procedures manual that document the system and also serves as a
guide to the accounting staff in the discharge of their daily functions.
The procedures manual document, among others, the overall administrative set up of the
accounts unit; the project budgeting requirements and specific timing; the coding system and
chart of accounts; the job descriptions of the staff of the accounts unit; the approval processes
and authorization theresholds and the reports to be prepared periodically by the unit. The manual
has been reviewed by the Bank and found to be satisfactory.
-24 -



Akyem Abuakwa Traditional Council (AATC)
Our assessment revealed that the financial management system of the Akyem Abuakwa
Traditional Council Secretariat was not satisfactory. The Bank agreed with them to recruit a
qualified firm to help them set up a credible and efficient financial managmnent system. The firm
will be required to help the development unit (which is the implementation unit) within
secretariat of the council to set up an accounting function, design their accounting system,
document the system in an accounting procedures manual and train their staff. The Bank will
review and assess the introduced accounting system of the Secretariat when it is put in place and
ensure that it is satisfactory and meets the Bank's financial management requirements, prior to
disbursement of funds.
Flow Of Funds Arrangements
The pilot projects will implement a centralized funds management system, all payments will be
processed and paid at the accounts unit of the development units. To facilitate the
implementation of the project, the two project implementation units will operate two bank
accounts each. One special account which will be maintained in US Dollars into which funds
from the credit account will be paid into, and one Ghanaian Cedi account which would be for the
counterpart funds required under the project.
If there is need to make periodic transfers to some collaborating implementing entities, then the
World Bank will review the method to be used and arrangements put in place to ensure that the
releases to be made will be used for intended purposes and promptly accounted for before that is
done.
Financial Monitoring Reports (FMR)
The respective implementation units of the two pilot councils would each prepare simple
quarterly FMR which will consist of;
i)    sources and uses of funds;
ii)   uses of funds by project activities;
iii)  contract monitoring reports;
iv)   procurement monitoring report;
v)    physical progress report;
The contents and formats of these reports were agreed upon during negotiations. The chart of
accounts and coding system will allow a meaningful summarization of transaction and
consequently provide these reports.
-25 -



Audiiing Arrangem?engs
The Borrower shall appoint independent and qualified auditors acceptable to the World Bank to
audit the projects' financial statements. The audit shall be carried out in accordance with
international standards of auditing or if different, such standards must be acceptable to the Bank.
The audit report will contain separate opinions on the financial statements or project accounts,
the use of the SA, and the eligibility of expenses paid under the SOE method. The audit will
cover the two sub-components and each SA and SOE will have independent opinions expressed
on them.
Disbursement Arrrangemenats
The proceeds of the credit would be disbursed over a three-year period. A period of four mconths
after the closing date would be allowed to make disbursements for expenditures up to the closing
date of the credit.
Stements of Expenditures (SOEs)
Disbursements for all expenditures would be against full documentation, except for items of
expenditures under contracts and purchase orders below US$20,000 equivalent each, for works,
goods and consulting firms, and below US$10,000 for consultant services (individuals), training
and incremental costs for which disbursements would be based on SOEs.  Supporting
documentation for SOEs incurred by the implementing units under each traditional council's
sub-component would be retained by the units for review by IDA missions and external auditors.
Special Account (SA)
To facilitate disbursements, two SA would be opened and managed separately for each
traditional authority by their respective development units. The SAs would be established and
operated in US$ at a commercial bank, under terms and conditions satisfactory to the IDA. Upon
credit effectiveness, a sum of US$400,000 would be deposited into the special account for the
Asanteman sub-component, while a sum of US$50,000 would be deposited in the special account
of the Akyem Abuakwa sub-component. Further deposits would be made into the special
accounts against withdrawal applications supported by appropriate documentation.
-26 -



Annex 5: Project Processing Schedule
GHANA: Promoting Partnerships with Traditional Authorities Project
Time taken to prepare the project (months)
First Bank mission (Identification)                                        02/24/2002
Appraisal mIsslon departure                     06/03/2002                 08/03/2002
Negotiations                                    07/30/2002                 01/27/2003
Planned Date of Effectiveness                   06/15/2003
Prepared by:
Asanteman Council, Akyem Abuakwa Traditional Council and IDA Staff
Preparation assistance:
Bank staff who worked on the project Included:
Name                                    Speciality
Kofi Awanyo                       Procurement/QK
Fred Yankey                       Financial Management/QK
Evelyn Awittor                    Health
Eunice Dapaah                     Education
Tsri Apronti                      Education
Edward Dwumfour                   Natural Resources/Environment
Kofi-Boateng Agyen                TTL
Kofi Marrah                       Social Development
Arne Dalfelt                      Environment
Eileen Murray                     Operations
Chad Leechor                      Economy
Serigne Omar Fye                  Environment
Karen Hudes                       Legal
David Webber                      Disbursement
Salli Cudjoe                      Administration
Georgette B. Johnson              Administration
-27-



Staff of the Traditional Councils who worked on the project included:
Akyem Abuakwa Traditional Council (AATC):
1. Dr. Angela Ofori-Atta, Clinical Psychologist -Coordinator
2. Mr. Duke Ofori-Atta
3. Nana Fredua Agyeman Ofori-Atta
4. Mr. Djabanor Narh - BDC Consulting
5. Dr. William Ampofo - Noguchi Institute, Accra
Asanteman Council (AC):
1. Nana Boakye-Ansah Debrah - AC
2. Oheneba Agyeman Atwereboanda - AC
3. Mr. A. Attah-Poku - AC
4. Dr. Kyei-Faried S. - Ministry of Health
5. Mr. A.A. Daramanu - Ministry of Education
6. Mr. Joe D. Issachar - Regional Coordinating Council
7. Mr. A.S.Y. Andoh - AC
8. Mr. Pat Eghan - Regional Coordinating Council
-28 -



Annex 6: Procurement and Disbursement Arrangements
GHANA: Promoting Partnerships with Traditional Authorities Project
Procurement
1.    The World Bank Country Procurement Assessment Reports (CPAR) in 1985 and 1996, a
consultant report by Mr. Gosta Westring's in 1997 and a Country Portfolio Performance Review
(CPPR) in 1998 provide detailed information on Ghana's procurement environment. These
reports cite (i) lack of a comprehensive legal framework, (ii) lack of a uniform and codified
procurement procedures and regulations, (iii) weak capacity of procurement staff, and (iv) loose
institutional and organizational arrangements for collective decision making in awarding of
contracts, as major factors contributing to weaknesses in the public procurement practices. The
reports however were not able to quantify the public procurement by various methods and by
institutions. Some of the unacceptable features in the current public procurement practices
highlighted in the reports are (i) extensive use of sole method for selection of consultants, (ii)
extensive and repetitive use of shopping procedures, often including same firms, (iii) unclear
procedures for opening of bids and criteria for bid evaluation and contract award, and (iv) post
contract negotiations. The reports recommend a comprehensive procurement reform for Ghana.
This recommendation was also endorsed in the 1999 CDF initiative document for Ghana.
2.    Ghana's procurement procedures and regulations are scattered in various legal documents
and circulars, which are often not clear, contradictory and subject to misinterpretations. There are
no mechanisms for monitoring procurement and for dealing with complaints. The current
procurement system does not guarantee economy, efficiency and transparency in public
procurement. It is a fair conclusion that the Government does not have a comprehensive
procurement code for the procurement of goods, works and services by Government ministries
and agencies. For Donor-financed projects, for works and goods contracts below ICB thresholds
and for selection of consultants, most entities follow the Bank's guidelines as the official
procurement procedure. The Government has realized there is a need for the country to review
and reform its public procurement practices. The reformed practices would entail adoption of
rationalized and codified public procurement procedures and regulations, applicable to all public
procurement entities and ensure value for money. The purpose of the public procurement reforms
is therefore to streamline the procedures and regulations for procurement of goods, works, and
services, and establish an effective monitoring system in order to ensure proper utilization and
developmental impact of public resources.
3.    The on-going procurement reforms are financed by the Public Finance Management
Technical Assistance Project. (Cr. 2925). In 1999 the Government established, in the Ministry of
Finance, a Procurement Policy Oversight Group (PPOG) to oversee the process of the
preparation and implementation of public procurement reforms in Ghana. The PPOG prepared a
Terms of Reference (TOR) for preparing a Procurement Reforms Proposal and selected
consultants to prepare it. In order to ensure that the PRP is not prepared as a desk exercise, the
TOR required the Consultants to work in close liaison with stakeholders in public and private
sectors, paying due attention to consultation, participation and ownership. A draft Public
-29 -



Procurement Law has been prepared and it is expected that the bill will be considered by
parliament in February, 2003. The draft law is based on the UNCITRAL Model Law on
Procurement of Goods, Construction and Services (1994). The draft law includes all the features
of good public procurement practice i.e. (i) effective and wide advertising of upcoming
procurement opportunities; (ii) public opening of bids; (iii) pre-disclosure of all relevant
information including transparent and clear bid evaluation and contract award procedures; (iv)
clear accountabilities for decision making; and (v) an enforceable right of review for bidders
when public entities breach the rules.
4.    In the absence of a national procurement code, the procurement procedures to be followed
has been fully described in the in the Project linplementation Manual. Registration/Classification
of contractors may be used for establishing bidder qualification or for preparing a list for use
under price comparison procedure but not as criteria for bidding or for award of contract.
Use of 3ank Guidelines
5.    All works and goods financed under the IDA credit would be procured in accordance with
the Guidelines: Procurement under IBRD Loans and IDA Credits, January 1995 and as revised
in January and August 1996, September 1997 and January 1999. Consultants will be selected in
accordance with the Guidelines: Selection and Employment of Consultants by World Bank
Borrowers, January 1997 and as revised September 1997, January 1999 and May 2002.
National Competitive Bidding (NCB) procedures will include: (a) an explicit statement to
bidders of the evaluation and award criteria; (b) national advertising with public bid opening; (c)
award to the lowest evaluated responsive and qualified bidder and (d) foreign bidders would not
be precluded from participation in NCB.
6.    No ICBs are expected under the project but the Bank's Standard Bidding Documents
(SBD) with appropriate amendments will be used for all NCB for works and goods. The Bank's
Standard Request for Proposals (SRFP) would be used for all consulting assignments. The
Manhyia Development Unit (MDU) of the Asanteman Council and the Akyem Abuakwa
Traditional Council Secretariat, the implementing agencies should ensure that each time they are
using the current version of the appropriate SBD or SRFP. Less competitive bidding and
selection procedures should not be used as an expedient to by-pass more competitive methods
and fractioning of large procurements into smaller ones solely should not be done to allow the
use of less competitive methods. The detailed procedures to be followed have been described in
the Project Implementation Manual.Eligible project expenditure up to an aggregate of USD
400,000 may be financed retroactively in accordance with paragraph 1.9 of the Procurement
Guidelines and paragraph 1.11 of the Consultants Guidelines.
Advertising
7.    No ICBs or consulting assignments estimated to cost above USD 200,000 are expected
under the project. A Project Procurement Notice (PPN) will be published in a newspaper with
national circulation. The PPN will indicate all NCB contracts and all consulting assignments
estimated to cost USD 100,000 or more. The PPN would be updated on a yearly basis and would
show all outstanding NCB and all consulting services estimated to cost USD 100,000 or more.
-30-



Specific Procurement Notices (SPN) will be required for contracts to be procured under NCB
procedures and for consultant contracts with an estimated cost of USD 100,000 or more to obtain
expressions of interest (EOI) prior to the preparation of the shortlist. SPNs will as (a minimum)
be published in a newspaper of wide national circulation. Sufficient time would be allowed (not
less than 30 days for NCB and not less than 14 days for EOI) to allow adequate time for bidders
and consultants to obtain documents and respond appropriately.
Procurement Capacity
8.    The Asanteman Council had no capacity in procurement and as part of project preparation
activities, a Procurement Specialist has been hired together with a project manager and a
financial manager to provide project management services for the project. The three
professionals form the core staff of the MDU. The core staff were selected through a competitive
process. The candidate selected for the position of Procurement Specialist has the requisite
educational background, professional qualifications and previous experience in procurement
under Bank financed projects. The Akyem Abuakwa Traditional Council has selected a
consulting firm to provide procurement services for their sub-component of the project.
9.    Although the core skills are now available in the MDU and the Akyem Abuakwa
Traditional Council Secretariat, the project has been assigned a "High" procurement risk rating
because of the possibility of interference by the two traditional councils and chiefs in the
processing of procurement. In the culture of the people, a chief wields a lot of authority and it is
not very easy to say "no" to a chief.
10.   The project launch workshop will include a session on Bank/Public procurement. The
focus will be to re-orient key staff of the Asanteman Council and the Akyem Abuakwa
Traditional Council on the principles of good public procurement practice. The project
management teams in the two traditional councils will also attend Bank sponsored regional
procurement training courses at the Ghana Institute of Management and Public Administration
(GIMPA).
Procurement Plans
11.   The MDU and the Akyem Abuakwa Traditional Council have prepared a Global
Procurement Plan (GPP) for the whole project, and a Detailed Procurement Plan (DPP) for the
first two years of the project showing contract packages, and for each package its estimated cost,
procurement method and processing times for key activities till completion. The GPP and the
DPP are part of the Project Implementation Manual which has been completed. The Manual
contains the project workplans from which the procurement strategies and schedules were
derived. The plans were agreed with IDA during appraisal. Three months prior to the start of
each subsequent fiscal year, the Asanteman Council and the Akyem Abuakwa Traditional
Council will submit up-dated versions of the GPP, and the annual DPPs in respect of the
following year. Each quarter the Asanteman Council and the Akyem Abuakwa Traditional
Council will submit to IDA a procurement monitoring report as part of the Financial
Management Report (FMR).
- 31 -



IPirouremiment ]lmpnlementadon Arrangements
12.   The MDU and the Akyem Abuakwa Traditional Council Secretariat will each be
responsible for procurement planning, implementing procurement and processing of works,
goods and service contracts for their sub-component of the project.
Scope of procurement and pprocurement nmethods
13.   Works and Services other than consulting services (estimated to cost USD 3.30m) will
consist of enhancement/rehabilitation of selected first cycle schools; refurbishment of the two
traditional councils' secretariats, etc. Since the sites for the schools are dispersed in the districts,
the method of procurement will be NCB. No 1CB works contracts are expected under the
project. Very small contracts for simple works estimated to cost less than USD 30,000 equivalent
may be procured by way of soliciting quotations through written invitations from not less than
three qualified contractors. Registration/Classification of contractors may be used to identify
contractors for such very small contracts. The invitation shall include a detailed description of the
works, basic specifications, the required completion date, a simple form of agreement acceptable
to the Bank, and relevant drawings (where applicable). In all cases the award of contract shall be
made to the contractor who offers the lowest evaluated price for the required work or service, and
who has the experience and resources to successfully complete the contract.
14.   Goods (estimated to cost USD 0.58m) will consist of computers and accessories,
software, office equipment, textbooks, brochures, school equipment and a few vehicles,
motorcycles and bicycles. To the extent possible, goods that could be procured under one
supplier would be grouped into contract packages, and packages estimated to cost the equivalent
of USD 100,000 or more would be procured under ICB procedures. LIDB procedures may be
used, with the concurence of IDA, when there is only a limited number of suppliers or where
exceptional reasons may justify departure from full ICB procedures. Procurement of goods
packages estimated to cost more than USD 30,000 but less than USD 100,000 would be procured
using NCB procedures. Goods packages estimated to cost less than USD 30,000 would be
procured by shopping on the basis of comparison of quotations from at least three eligible and
qualified suppliers. Requests for such quotations will include a clear description and quantity of
the goods; as well as requirements for delivery time and point of delivery.
15.   Software, spare parts and accessories which are of proprietary nature may be procured
under contracts negotiated directly with the manufactures/suppliers or their authorized agents.
Very small items in packages of USD 200 or less up to an aggregate of USD 50,000 may also be
procured by direct contracting. The prices obtained for such items must be reasonable and
comparable to prices obtained elsewhere.
16.   Consulting Services and Training (estimated to cost USD 1.48 million) will consist of
various studies and Technical assistance to be carried out mainly by national consultants as well
as workshops and group discussions. As a rule, consulting firms for all assignments estimated to
cost the equivalent of USD 100,000 or more will be selected through Quality and Cost Based
Selection (QCBS) methodology. Other consultants selection methods may be adopted if justified
-32 -



in accordance with the Consultant's Guidelines. Assignments estimated to cost the equivalent of
USD 200,000 or more would be advertised for EOI in Development Business (UNDB) and in at
least one newspaper of wide national circulation. In addition, EOI for specialized assignments
may be advertised in an international newspaper or magazine. In the case of assignments
estimated to cost between US$ 100,000 and USD 200,000, the assignment will be advertised
nationally. The shortlist of firms for assignments estimated to cost less than USD 200,000 may
be made up entirely of national consultants if at least three qualified firms are available at
competitive costs in the country. However, foreign consultants who wish to participate should
not be excluded from consideration. Consultant services estimated to cost less than the
equivalent of US$ 30,000 may be contracted by comparing the qualifications of consultants.
Auditors would be selected using Least-Cost-Selection procedures. In case of assignments
requiring individual consultants, the selection will follow the procedures stipulated in Section V
of the Consultants Guidelines.
17.   Training programs and workshops would be packaged in the project's workplans and
budget and items therein procured using appropriate methods. The Bank will review and clear
training packages as found appropriate.
IDA Review
18.   All works, services other than consulting services and goods contracts estimated to cost
USD 20,000 or more will be subject to the Bank's prior review in accordance with the
procedures in Appendix I of the Procurement Guidelines. All contracts awarded on basis of direct
contracting or sole source basis will require prior review and clearance of the Bank.
19.   All single source selection will be subject to Bank prior review. Consultancy contracts
with firms with estimated value of USD 20,000 or more, and consultancy contracts with
individuals estimated value of USD 10,000 or more will be subject to prior review by the Bank in
accordance with the procedures in Appendix I of the Consultants Guidelines.
20.   All training programs, seminars, workshops etc. would be subject to the Bank's prior
review.
21.   Contracts which are not subject to prior review will be selectively reviewed by the Bank
during project implementation and will be governed by the procedures set forth in paragraph 4 of
Appendix I to the relevant Guidelines.
Contract Management and Expenditure Reports
22.   As part of the Financial Management Reporting under the project, the MDU and the
Akyem Abuakwa Traditional Council Secretariat will submit contract management and
expenditure informnation in quarterly reports to IDA.
-33 -



TabRe A: Project Costs by procurmment Arrangemeunts (UJSID mlmlions)
Expenditure          omeurement Methods                      |Total Costs
Category        ICB         NOB        (Otheir      N..BIF    (icluding
Contingencie
s)
Works            (-)         3.10        0.20                    3.30
_________  (-)  (2.82)  (0.18)       (-)       (3.00)
Goods &          (-)         0.38        0.20         -0.§
Equipment        (-)        (0.35)      (0.18)       (-)        (0.53)
Consulting                               1.48                    2 .48
Services &       (-)         (-)        (1.34)       (-)         (1.34)
Training
Operating                                0.14                    0114
Cost(-()                                (0.13)       (-)          .13)
Total Project     .          3.48        2.02          -.§0
Cost of which    (-)        (3.17)      (1.83)        (5) (§.00)
funded by
DA           _
Figures in parenthesis are amounts financed by the IDA Credit
Annex 6 - Table B: ThreshoRds for Proeurement Methods and Moir Review
Expenditure        Contract VaRue       Pfrocurement      Contracts Subject
Categonry         (Threshold)            Metnod                to
Prior Review
(Estimated totae
value subject to
_prnor review)
Works                   >=30,000               NCB            Contracts over
$20,000
Below US$ 30,000      Price Comparison
Contracts over
All values        Direct contracting     $20,000
All contracts
Goods             US$ 100,000 or above    ICB LIB will be      All contracts
used only if there is
a limited number of
-34 -



suppliers
>=US$ 30,000 - <US$         NCB            Contracts over
100,000                                $20,000
Below US$ 30,000         Shopping        Contracts over
$20,000
All values       Direct contracting
All contracts
Services          US$ 100,000 or above        QCBS            All contracts
Below 100,000, firms  QCBS/LCS/SBCQ       Contracts over
$20,000
Below 50,000, individuals  Individual
Contracts over
All values         Single source        $10,000
_ _ _ _ _ _ _ _ _ _ _ _ _ __   _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _   _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _   A ll  contracts
Estimated Total      US$m                                3.5m
value of
contracts subject                                         (50%)
to prior review:
Percentage of
contracts subject
to prior review
All single source consulting assignments irrespective of value are subject to prior review.
Overall Procurement Risk Assessment:
High       *
Average
Low
Frequency of procurement supervision missions proposed: One every 3 months
(includes procurement workshops and training)
- 35 -



Disbursement
23.   The proceeds of the credit would be disbursed over a three-year period. A period of 4
months after closing date would be allowed to make disbursements for expenditures incurred
until the closing date of the credit.
Table 8: Ailocation el Cred¢t Proceads
'-;>Ex e~nc§titUi'.eB1 teqnL  . . .Ainimt In UL$4milli3fn  - .- - a. c_
Works                                   2.70           100% of foreign and 90% of local
(Asanteman $2.60M                                            expenditures
Akyem Abuakwa $0. 10M)
Goods & Equipment                       0.50           100% of foreign and 90% of local
(Asanteman $0.40M                                            expenditures
Akyem Abuakwa $0.10M)
Consultant Services, Training and       1.20               90% for all expenditures
Audit Costs
(Asanteman $1.05M
Akyem Abuakwa $0. 15M)
Operating Costs                         0.20               90% for all expenditures
(Asanteman $0.150M
Akyem Abuakwa $0.05M)
Unallocated                             0.40
Total Project Costs                     5.00
Total                                   5.00
Staements of Expenditures
24.   Disbursements for all expenditures would be against full documentation, except for items
of expenditures under contracts and purchase orders below US$20,000 equivalent each, for
works, goods and consulting firms, and below US$ 10,000 for consultant services (individuals),
training and incremental costs for which disbursements would be based on statement of
expenditures (SOEs). Supporting documentation for SOEs incurred by the Development Units
(PIUs) would be retained by the unit for review by IDA missions and external auditors.
Special Account (SA)
25.   To facilitate disbursements, one Special Accounts (SA) would be opened and managed by
the Development unit of the Asanteman Council. A second SA would also be opened and
managed by the Secretariat of the Akyem Abuakwa Traditional Council when the financial
management system put in place at the secretariat is found to have met the financial management
requirements of the Bank. This will be a disbursement condition. The SAs would be established
and operated in US$ at commercial banks, under terms and conditions satisfactory to the IDA.
Upon credit effectiveness, a sum of US$ 400,000 would be deposited into the special account to
be managed under the Asanteman Council's sub-component, and US$ 50,000 deposited into the
special account to be managed by the Akyem Abuakwa traditional Council, when the
-36 -



disbursement condition have been met. Further deposits would be made into the accounts
against withdrawal applications supported by appropriate documentation.
-37 -



Annext 7: Documents On ets Project File*
GHlANA: Pronoting Pair2nrshlps with Traditon&D AuthorKies Project
A. Project Dmplementation Plen
* Asanteman Council PIP
* Akyem Abuakwa Traditional Council PIP
B. Bank Staff Assessments
C. Other
1. Healthy Outcomes - PHRD Funded Study
2. Cultural Heritage Review - Norwegian Heritage Organization aide memoire
3. World Bank review - Preserving Cultural Heritage
4. Traditional Authorities' role in Primary School Education in the Ashanti Region-PHRD
funded study
5. Capacity Building for Traditional Authorities - PHRD Funded Study
6. *Pre-appraisal and Appraisal Aide-memoires
Including electronic files
- 38 -



Annex 8: Statement of Loans and Credits
GHANA: Promoting Partnerships with Traditional Authorities Project
06-Feb-2003
Difference between epected
and actual
Original Amount In US$ Millions                          disbursements
Project ID    FY   Purpose                                    IBRD        IDA                 GEF    Cancel    Undisb       Org  Fnn ReVd
P050623       2002 ROAD SECTOR DEVELOPMENT PROGRAM                 000     220 00                0 00      000     232 55     33 82     0 00
P067685       2002 GhanaGEF-NorthemSavanna-TF050723                000       000                 790       000       782      238       000
P000968       2001 AGRIC SERVICES                                  000      67 00                0 00      000      64 94     73 63     0 00
P071617       2001 Ghana AIDS Response Prect (untr3lla)            000      2500                 000       000      21 86     -4 57      000
P050624       2000 URBAN5                                          000      1083                 000       000       652       527       041
POSO616       2000 COMMUNITY WATERII                               000      2500                 000       000      1807      -717       000
P069465       2000 RURAL FINANCIAL SERVICES PROJECT                000       513                 000       000       4.88     1283       000
P000970       1999 TRADE GATEWAY&INV                               000      5050                 000       000      2961      2063       000
P000974       1999 NATFUNCUTPROG                                   000      3200                 000       000      2489      1230      383
P050015       1999 PUBSECTORMNGTPROG                               0.00     1430                 000       000       409       445      000
P040659       1999 COMMUNrYOEV                                     000       500                 000       000       475       467       1 37
P040557       199  ERSOII                                          000     17820                 000      1841      2740       045      000
P045188       1998 GHFORESTBIODIVERSITY                            000       000                 890       000       661       349       00o
P000946       1998 NAT RES MANAGEMENT                              000       9 30                0 00      000       060       0 89      0 00
P041150       1997 VILLAGEINFRASTRUCTURE                           000      3000                 000       000      1051      1002       000
P045588       1997 PUB FIN MGMT TAP                                000      2090                 000       000       368       530       000
P000973       196 URBAN ENVIRONMENTAL SANITATION                   000      71 00                000       000       682      1428       614
P042516       1996 PUBUC ENTERPRISE/PR                             000      2645                 000       000       762       949       000
P000926       1995 GH THERMAL (P-VII)                              0 00    175 60                0 00      000      27 01     3179      31 08
P000936       1994 LOCALGOVTDEV                                    000      3850                 000       000       140       254       000
Total.       000     100471              16.80       1841     51153     23848      4283
- 39 -



GHANA
STATEMENT OF IFC's
Held and Disbursed Portfolio
Jun 30 - 2002
In Millions US Dollars
Conmned                        Disbunsed
IUFC                           EUFC
FY Approval        Company                      Loan  Equity    Quasi  Panic   Loan   Equity   Quasi   Partic
1993               AEF Afariwaa                 0.16    0.00    0.00    0.00    0.16    0.00    0.00    0.00
1995               AEF Antelope Co.             0.00    0.00    0.00    0.00    0.00    0.00    0.00    0.00
2000               AEF Computer Sch             0.23    0.00    0.00    0.00    0.23    0.00    0.00    0.00
2001               AEF GPPI                     1.70    0.00    0.00    0.00    1.70    0.00    0.00    0.00
1998               AEF NCS                      0.00    0.00    0.53    0.00    0.00    0.00    0.53    0.00
1997               AEF PTS                      0.00    0.00    0.31    0.00    0.00    0.00    0.31    0.00
1999               AEF PhannaCare               0.28    0.00    0.00    0.00    0.28    0.00    0.00    0.00
1994               AEF Shangri-la               0.93    0.00    0.00    0.00    0.93    0.00    0.00    0.00
1996               AEF Tacks Fanns              0.43    0.00    0.00    0.00    0.43    0.00    0.00    0.00
1989/91/93         Cont Acceptances             0.00    0.00    0.00    0.00    0.00    0.00    0.00    0.00
2001               Diamond Cement               5.00    1.00    0.00    0.00    0.00    0.00    000     0.00
2000               ELAC                         0.00    0.10    0.00    0.00    0.00    0.10    0.00    0.00
GAGL                         0.00    0.00     3.26    0.00   0.00    0.00    3.26    0.00
1990/91/96         GHANAL                       0.00    0.44    0.00    0.00    0.00    0.44    0.00    0.00
1991               Ghana Leasing                0.00    0.15    0.00    0.00    0.00    0.15    0.00    0.00
MFI SSLC                     0.00    0.48     0.00    0.00   0.00    0.48     0.00   0.00
1992/93            Wahome Steel                 0.23    0.00    0.00    0.00    0.23    0.00    0.00    0.00
2001
1989/92
Total Portfolio:        8.96    2 17     4.10    0.00    3.96    1.17    4.10    0.00
I
Approvals Pending Commitment
FY Approval       Company                         Loan    Equity     Quasi    Panic
Total Pending Comrnitmnent:     0.00      0.00      0.00     0.00
-40 -



Annex 9: Country at a Glance
GHANA: Promoting Partnerships with Traditional Authorities Project
Sub-
POVERTY and SOCIAL                                         Saharan     Low-
Ghana     Africa   Incoffe     Development diamond
2001
Population mid-year (millons)                      19.7       674     2,511                Ufe expectanrcy
GNI per capita (Atlas method, US$)                   290       470       430
GN (Atlas method, USS billions)                      57        317     1,069
Average annual growth, 1995-01
Population (%)                                       2.2       2.5       1 9     GNI                            Gross
Labor force (%)                                      2.5       2.6       2.3     GI
per                           primary
Most recent estimate (latest year available, 1995-01)                            capita                     enrollment
Poverty (% of population below national poverty line)
Urban population (% of total population)              36        32        31
Ufe expectancy at birth (years)                       57        47        59
Infant mortality (per 1.000 live bIrths)              58        91       76
Child malnutrifton (% of children under 5)            25                              Access to Improved water source
Access to an improved water source (% of population)  64        55        76
illiteracy (% of population age 15+)                  27        37        37
Gross primary enrollment (% of school-age population)  78       78       96            Ghana - ---- Low-ncome group
Male                                                82        85       103
Female                                              74        72        88
KEY ECONOMIC RATIOS and LONG-TERM TRENDS
1981     1991      2000      2001
Economic ratlos'
GDP (USS billions)                          42       6.6       5 0       5.3
Gross domestic InvestmenVGDP                4.6     15 9      237       24 0                    Trade
Exports of goods and services/GDP           4 8     170       492       522
Gross domestic savings/GDP                  4 0      7 3       3.3       5 8
Gross nafional savinsGDP                    3 7      8 8      13 4      17.0
Current account balance/GDP                -1 2 0    -8 9     1 1       114       o                          Ivestment
Interest payments/GDP                       0.7      1 0       24        1.5     savine                             n
Total debt/GDP                              36.4    66.4      1336     1262
Total debt service/exports                  142     27.1      19 1      15.3
Present value of debVGDP                                      788
Present value of debt/exports                                10nt. 1600
Indebteriness
198141   199101     2000      2001   2001-05
(average annual growth)
GDP                                 4.0     4 2      3.7       4 0       5 0            Ghana       Low-income group
GDP per capita                      0.3      1.9     1.3        1 9      3 5
Exports of goods and services       4.9    10.4     -2.3       0 3       2.8
STRUCTURE of the ECONOMY
1i98     1991      2000      2001     Growth of Investnent and GOP ()
(% of GDP)                                                                       20
Agnculture                                 53.1     45 5      35 3      35.9              _
Industry                                    9.2     17.0      25 4      25.2      o
Manufacturlng                              6.0      9.3       90        92                   7
Services                                   37.8     375       39 3      389      2
Private consumpton                         87 2     83 2      81 4      78 7    x4
General govemment consumption               8 8      95        15 3     158                    GOI           GDP
Imports of goods and services               5.3     25 5      69 6      70.5
(average annual growth)                 1981-91  1991-01      2000      2001     Growth of exports and Imports (%)
Agriculture                                  17      3 5       21        3 7     so
Industry                                    5 6      3 0       3 8       4 0
ManutacturIng                              62      -1 2       3 7       76      25
ServIces                                     6.5     53        5.1       4.3      o'r 
Pnvate consumption                           3.9     4 0       -2.2      1.4
General govemment consumPtion               2 7      5 5      20 1      15 0    .25
Gross domestic investment                   63       1.4      -191       -11            -     Exports   fiImports
imports of goods and services               4.1     10.3     -17 3       2 0
Note 2001 data are prelimnrary estimates
-41 -



Ghana
PRICES and GOVERNMENT FINANCE
1981     1991     20D       2001     lnfctUon (%)
Domestic prfces                                                                so
(% change)
Consumerptices                             116.5    181       25.0     330     r,
Implicdt GDP deflator                      75 6     20.0      27 2     346     40
Government flr.nce                                                             F0
(% of GDP, Indudes current grenfs)
Current revenue                             6 6     20.8      18 6     20.6            so    57   es     os    oo    1
Current budget balance                      - 2      9 5       0.1      1.2                    DP deflator  *OCPI
Overall surplus/defict                        ..     1.7      -9 1     -100
TRADE
(1981    19m       2000     2S01     Export cnd Import les (US$ rli.)
(US$ n-lllons)
Total exports (fob)                                 998      2,189    2,380
Cocoa                                        .     347       452      503
Timber                                             124       199      215      o.000
Manufactures
Total imports (dc)                                 1,412     3,608    3,781     2Do
Food                                        .       39                   .     .010
Fuel and energy                             ..     175       232      257
Captal goods                                       247       2
Exportprioelndex(1995=000)                           84       101       106          S5   g8   07   Oa   9    00   o
Importpricelndex(1995=100)                           79        79        83               QExports     oQiports
Terms of trade (1995=1OO)                            107       127      129
BALANCE of PAYMENTS
1981     1991      2003     2001      Current account balance to GDP (%)
(US$ mill}onsJ
Exports of goods and services                30    1,098     2,418    2,452 o
Imports of goods and services             1,246    1,852     3,525    3,554
Resource balance                           -416     Ism     -1,107    -1,103    -5
Net inrome                                  -66     -119      -147     -178
Net current transfers                        -4     219       650       788    -10
Current account balance                    4508     -454      -605     -602
Financing items (net)                       472     625       632       681
Changes in net reserves                      36     -171       -27      -79     20
Memo:
Reserves nicluding gold (US$ millions)        .        .      224       431
Conversion rate (DEC, localAJS$)            17 2   367 8    5,455 1  7,170.8
EXTERNAL DEBT and RESOURCE FLOWS
1M81     1991      20       201
(USS millions)                                                                  Coftiposttion of 20031 d3bt (US$ mill.)
Total debt outstanding and disbursed       1,539   4,380     6,648    6,690
IBRD                                      129      103         9        6                      Ake
IDA                                       111    1,522     3,130    3,172                 G 604
Total debt service                          119      300       467      380         Fate
IBRD                                       12      21          9        4         F      .I
IDA                                         1       12       47        59
Composition of net resource flows                                                                            :
Offical grants                             34     470       226
Otfical crditors                           79     353        179      223       E 122.
Prtvate reditors                           -3      35        -59       76
Foreign direct investment                  16      20        110
Portfolio equity                            0       0         17                         DS"    c:284
Wortd Bank program
Commitments                                28      168       93       433     A - IBRD                    E - Bilatersa
Disbursements                              31      199      204       193     B-IDA    0-Otherrnuttllaterml  F-Private
Principal repayments                        5       14       33        37     C- IMF                      G - Short-term
Net flows                                  26      185       171      156
Interest payments                           9       19       23        25
Net transfers                              17      167       148      130
Note' nis taole was poucea irom mie ueveiopment tconomrics centrar cmaoase FAMi53
-42 -



Additional Annex 10: [Primary Schools to be Rehabilitated
GHANA: Promoting Partnerships with Traditional Authorities Project
INVENTORY OF PHYSICAL STRUCTURES OF EDUCATIONAL FACILITIES IN
FORTY TARGET COMMtlNITIES FROM EIGHTEEN DISTRICTS
DISTRICT       COMMUNlTY/           DESCRIPTION            CONDITION
SCHOOL NAME
AFIGYA-        I.Asamang RCP         Old Building           Floor & walls
SEKYERE        2.Boama-Moase LAP     Mud Building           deteriorating
Collapsing
KWABRE         3.Maase-Brofoyedru LAP Mud Building
4.Amanfrom LAP        Roofing Staged level   Studying under tree
AMANSIE        5.Adimposo LAP        Temporary shed         Poor
WEST           6.Nkaasu LAP          3 classroom no office  Needs rehab.
SEKYERE        7.Sarnso LAP          Temporary shed         Poor
EAST           8.Funsua LAP          Brick structure        Very weak
9.Asisiwa LAP         Mud building           Very weak
10.Seneso LAP         Temporary shed         Poor
EJURA/         1 l.Dromankoma AP     Classroom under shed   Destroyed by rain
SEKYEDUMAS 12.Bema LAP               Mud Building           Deteriorated
E              13.Ejura LAP          No classroom           Destroyed by rain
ADANSI EAST 14.Pipiiso LAP          Four room Building     Poor
15.Nsokote LAP        Temporary Building     Bad structure
AMANSIE       16.Asamama LAP        Wooden structure       Poor
EAST          17.Feneso No. 3 LAP   Mud Building           Poor
SEKYERE        18.Atonsuagya LAP      ud Building           Poor condition
WEST           19.Birem LAP          Sandcrete Block Building  Needs rehab. &
extension
AHAFO-ANO     20.Suponso DAP         Make shift classroom   Very Poor condition
NORTH         21.Konkori DAP         Mud Building           Collapsing
ATWIMA        22.Asuofua LAP          ud Building           Structure very weak
23.Anhwiafotu LAP     Temporary Building     Structure very weak
- 43 -



Df $TPJCT       CMoUNE]TYI             IDESCELf0N             CONDIITIIN
SCIHIOOL NAME        No ceiling/no plaster of
BOSOMTWII      24.weesoRC
ATWB   W/      24.Nweneso RCP         Small classroom         Structures need rehab.
KWANWOMA       25.Trabuom RCP                                Addition
ASANTE-AKIM 26.Kyempo PP             Needs to be re-constructed Needs rehabilitation
SOUTH          27.Saabo LAP          3 unit classroom
ASANTE-AKIM 28.Dwease MP             Mud Building            Weak structure
NORTH          29.Woraponso LAP      Old mud building        Weak structure
ADANSI WEST 30.Wamase LAP            remporary Building      Building collapsing
3 l.Kramokrom LAP      Mud Building           Weak structure
EJISU/ JUABEN 32.Boamodumasi MP      Weak building           Rehab. & extension
33.Domakwai LAP        3 unit classroom       need
34.Adadientem RCP      3 unit classroom
35.Hwereso PP          3 unit classroom
OFFINSO        36.Kwapanin RCP       Temporary shed          Femporary building
37.Dwendabi LAP        Mud building           Weak structure
KUMASI         38.Asokore Mampong     Building collapsing    Very poor state
RCP
AHAFO-ANO     39.Mpasaaso no.2 LAP   Temporary               Very weak
SOUTIH        40.Bonkwaso LAP        Building                Weak
I____________  ___________M ud  Building
AP          Anglican Primary
DAP         District Assembly Primary
LAP         Local Authority Primary
MP          Methodist Primary
PP          Presbyterian Primary
Presby      Presbyterian
RCP         Roman Catholic Primary
SOURCE: RAFIL CONSULTANTS (DEC. 2001, FINAL REPORT-EDUCATION, PHRD
FUNDED STUDY)
-44 -



Additional Annex 11 :Traditlonal Authorities Organizational Structure - Asanteman
Council
GHANA: Promoting Partnerships with Traditional Authorities Project
STRUCTURE
ASANTEHENE
KING
ASANTSMAN
|   ASANTEMIAN COUNCIL  
COIJNCIL OF TRADMONAL AUrHORnTIES
PARAMOUNT CHIEF                 PARAMOUNTCES
Traditinl Area #1L            Traditional Azas #2-35
IT
ChlIeDOmI.                     ChiallQns
TOWn/VIllage #               TownViDlla #2 #35
H geadpDerso (HP) |           2 Headpersn (HP)
Village #11           VIllage #~~~2i1p
Headperson ||Htadperson|
Village tl2                      Village J
|Header,son IIHeadperson|
VUa#13                         VIlae#23
IMPLEMENTATION ARRANGEMENTS
ASANTEHENE
KING
ASANTEMAN
Asanteman Council
- Council of Traditional Authorties
(Paramount Chiefs, Queenmothers, Chiefs, etc)
Overslght ommnittee
Rep. of regionalocal govt.
Rep. of Trad. Counci& Head of PIU
Regional Directors - Mmn.of Health & Education
I
Secretariat|
Offir,e of Administration |
Manhyia Development Unft - PIU|
- 45 -



Additons0 An&nsu 12:
Traditional AuthorltIes Orgenlational Strucurs - Ahyam Abushwa Traitional CounclI
GHANA: PromotOng Partnerzhips with T7adional AuthorOtts Project
ST]RUCT'URE
Okyonh3nz
(King)
Akyem Abuakwm Treditionsl Am
Akyom Abuakwo Traditlonal Council
Council of tradUonml m9tharitil
4Dvisional ChiIguesenmothar|
Su-chDslfzusesnmoth'asm
IMPLEMENTATOEN ARRANGEMENT
_   SYEI;A 3!AGUAMA
Akyern Abuakwta Traditional CounicEl
-Council of Tmcditional authorities
(Chiefs, Queenmothers, etc)
|ESdTRS GROUP
Policy& Implementation Guidance
Rep. of local govt; academics, otherprofessionals
Secetariat - Akyem Abuakwa Trad. CounciD
Project Impflemontation Unil
-46 -