The World Bank Kumasi Urban Mobility and Accessibility Project (KUMAP) (P178767) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. Please delete this note when finalizing the document. Project Information Document (PID) Concept Stage | Date Prepared/Updated: 25-Mar-2022 | Report No: PIDC33810 Mar 25, 2022 Page 1 of 16 The World Bank Kumasi Urban Mobility and Accessibility Project (KUMAP) (P178767) BASIC INFORMATION A. Basic Project Data OPS TABLE Country Project ID Parent Project ID (if any) Project Name Ghana P178767 Kumasi Urban Mobility and Accessibility Project (KUMAP) (P178767) Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) Western and Central Africa Aug 30, 2023 Dec 12, 2023 Transport Financing Instrument Borrower(s) Implementing Agency Investment Project Financing Ministry of Finance Kumasi Metropolitan Assembly Proposed Development Objective(s) The Project Development Objective is to improve mobility, safety, and accessibility along selected corridors, and improve planning capacity for sustainable urban growth in the Greater Kumasi Metropolitan Area. PROJECT FINANCING DATA (US$, Millions) SUMMARY-NewFin1 Total Project Cost 440.00 Total Financing 270.00 of which IBRD/IDA 200.00 Financing Gap 170.00 DETAILS -NewFinEnh2 Private Sector Investors/Shareholders Equity Amount Debt Amount Government Contribution 220.00 Government Resources 20.00 IDA (Credit/Grant) 200.00 Non-Government Contributions 50.00 Mar 25, 2022 Page 2 of 16 The World Bank Kumasi Urban Mobility and Accessibility Project (KUMAP) (P178767) Private Sector Equity 50.00 Total 270.00 0.00 Payment/Security Guarantee Total 0.00 Environmental and Social Risk Classification Concept Review Decision High Track II-The review did authorize the preparation to continue Note to Task Teams: End of system generated content, document is editable from here. Please delete this note when finalizing the document. B. Introduction and Context Country Context 1. Ghana, with a population of 31 million as of 20201 and USD 68.5 billion of GDP2 in 2021, has achieved remarkable poverty reduction and economic development in the past decades. Located at the coast of the Gulf of Guinea in western Africa, Ghana has a resource-rich economy and enjoys a stable political environment. In 2011, Ghana reached middle- income status as a result of strong, sustained economic growth and social progress over the past 30 years. Ghana achieved the first Millennium Development Goal (MDG) of halving poverty from 52.7 percent (1993) to 23.4 percent (2016) placing it at the forefront of poverty reduction in Africa. There have been considerable improvements across key human development indicators, notably average life expectancy, scholarity, and under-5 mortality. Main drivers for this socioeconomic leap are investment and rising productivity, a large expansion in agricultural production, rapid urbanization, and booming exports of high-priced commodities such as fossil fuels, gold, diamonds, bauxite, and robust cocoa industry (World Bank, 2022). 2. Despite the progress in social and economic development, inequality and social disparities persist across many dimensions. Unsustainable natural resource exploitation and Ghana’s high susceptibility to climate change, could increase the share of the population living below the poverty line by 2 to 6 percent by 2030. The poor and vulnerable are likely to be disproportionally impacted by this, especially farmers in the Northern regions (with poverty rates above 50 percent) and those living in urban slums. Ghana’s urbanization has outpaced the West African average and has been considerably faster than the global average since 1990. Over this period, Ghana’s urban population more than tripled, rising from under 4 million to nearly 14 million people. All city types dramatically increased in number, but Ghana’s smaller cities experienced faster urban population growth than its larger ones, and the current trend towards the rise of small and middle-size towns is expected to continue.3 Currently, the Greater Accra Region is home to 16 percent of the country’s 1 Ghana Statistics Service (GSS) data 2020. 2 World Bank. https://data.worldbank.org/indicator/NY.GDP.MKTP.CD 3 Fafchamps, Marcel; Shilpi, Forhad. 2020. The Evolution of Built-up Areas in Ghana since 1975. Policy Research Mar 25, 2022 Page 3 of 16 The World Bank Kumasi Urban Mobility and Accessibility Project (KUMAP) (P178767) population, Accra Metropolitan Area 7.5 percent, Kumasi Metropolitan Area (KMA) 8.3 percent and Tamale 1.5 percent (Arroyo, 2020). 3. Ghana has one of the highest levels (57 percent)4 of urbanization in Sub-Saharan Africa, but its cities are not equipped to service their growing populations. In urban areas, population growth has outpaced service supply, leading to a lower share of the urban population with access to piped water, sanitation, and toilet facilities. In Kumasi, for example, almost 83 percent of residents had access to piped water in 2000, but this level of access was reduced to 75.1 percent by 2010. Solid waste disposal and sewerage remain a major challenge in Ghanaian cities, increasing health risks and environmental damages, indirectly increasing health care costs due to diseases related to poor waste disposal and associated sanitary challenges. Ghana’s rapid urbanization has been accompanied by unplanned spatial expansion of metropolitan areas, leading to heightened transportation costs, longer commuting times, and decreased agglomeration effects. Ghana’s spatial coordination is severely limited by insufficient and deteriorating transport infrastructure across cities and regions, and the country’s interurban transportation system is heavily dominated by road transport. This is especially critical to the sustainable growth of urban areas as evidence shows that roads have proven to be a strong magnet for new settlements in Ghana.5 4. Unplanned urbanization and a lack of integrated spatial planning have reduced the efficiency of Ghana’s cities and resulted in a proliferation of informal settlements. As the concentration of people, assets, and infrastructure in cities increases, so does their exposure to climate risks. If unaddressed, climate change has the potential to hamper the development gains that typically come with urbanization – innovation, productivity, better jobs, and enhanced wellbeing. With combined effects from in-migration and natural growth, the forecasted population growth will contribute to exacerbate the vulnerabilities at-risk communities are exposed to, primarily related to effects of climate change, spatial isolation, food production/distribution, unemployment, health and sanitation, and other urban services. 5. Due to climate change, Ghana is likely to experience more acute climate hazards such as flooding, as well as more frequent and intense droughts. Climate change is projected to substantially increase the frequency of hot days and nights and extreme events are likely to increase, making the dry season much drier and the wet season wetter. This will likely increase the risk of flooding and droughts with adverse effects in urban services delivery. A study by the United Nations Office for Project Services (UNOPS, 2021) for Ghana revealed that pronounced climate risks due to flooding and landslide exposure that affects roads, including major highways, have the potential of causing up to US$3.9 billion in damages on a national scale in a likely 2050 flooding scenario – equivalent to three times the estimated US$1.3 billion Ghana invested in transport infrastructure in 2019. As a result of expected flood damage, many districts in the Eastern, Central, and Western regions may see over 80 percent of their population effectively cut off from healthcare and other basic services. The adoption and mitigation of well thought measures to combat climate change effects, as well as retrofitting infrastructure to be climate resilient, must not be choices but necessary steps if Ghana aspires to maintain its development trajectory. 6. The COVID-19 pandemic halted Ghana’s economic growth trend exposing systemic and structural shortcomings in terms of macroeconomic outlook, fiscal management, and social development. After experiencing steady economic growth rates averaging 7 percent between 2017-2019, Ghana’s economy witnessed a sharp contraction in the second and third quarters of 2020 following nationwide lockdowns. The overall fiscal deficit doubled to 15.2 percent in 2020. The economic slowdown impacted households severely with; poverty rate is estimated to have slightly increased from 25 in Working Paper; No. 9314. World Bank, Washington, DC. 4 (Ghana Statistical Service, 2022) 5 Ibid. Mar 25, 2022 Page 4 of 16 The World Bank Kumasi Urban Mobility and Accessibility Project (KUMAP) (P178767) 2019 to 25.5 percent in 2020. The pandemic has posed growing pressure on urban areas in Ghana where influence from past (socioeconomic progress and population growth) and present issues (health crisis, economic downturn, urban sprawl, motorization, climate change shocks) will continue to test local government capacities to cope with increased demand of services and limited budgetary allocations for investment and provision of quality services. Sectoral and Institutional Context Urban development and mobility context 7. Kumasi, the capital of the Ashanti region and second largest city of Ghana, has seen significant demographic growth and urban expansion in the last decades. The Greater Kumasi Metropolitan Area (GKMA), located about 270 km northwest of Accra, has a centrality as a traversing point from all parts of the country.6 The current population figure is estimated to be 3.5 million, with an estimated annual growth rate of approximately 6 percent since 2010. 7 Between 1972 and 2012, the total built-up area of GKMA almost quintupled from approximately 98 km2 to 478 km2 (9.5 km2 per year). The growth involved the expansion of the contiguously built-up area of the city itself, as well as the built-up areas of peri- urban and previously rural communities (Oduro et al., 2014). Figure 1: Built-up Areas of Greater Kumasi Metropolitan Area 1972 and 2012 (Source: Oduro et al, 2014) 8. Urban sprawl in the GKMA presents physical, economic, and social challenges. Scattered or dispersed development is the most common type of sprawl in Kumasi, while leapfrog development is not very common. Physically, the phenomenon is marked by the destruction of the natural environment, and agricultural land and the pollution of both the water bodies and air. Other physical issues in these sprawling areas involve poor sanitary conditions, low housing density, and increasing commuting time as a result of high traffic generations on the roads in these areas coupled with poor conditions of the road. The most common social manifestation of pressure on existing services in these sprawl areas 6 Greater Kumasi Metropolitan Area comprises the Kumasi old city and six adjoining districts—Ejisu-Juabeng, Bosomtwe, Kwabre East, Afigya Kwabre, Atwima Nwabiagya and Atwima Kwanwoma. 7 Estimate based on district level data provided in 2021 Census report. Administrative boundaries have been revised since the 2010 census, making direct comparison difficult. Further analysis is required. Mar 25, 2022 Page 5 of 16 The World Bank Kumasi Urban Mobility and Accessibility Project (KUMAP) (P178767) is witnessed early in the mornings and late in the evenings when passengers struggle to board the limited public transport services popularly known as “trotros� leaving long queues at most areas in the metropolis. Moreover, sprawl has also created segregation of different socioeconomic groups, with low-income households concentrating in the core regions because they cannot afford a car-based lifestyle. From an economic perspective, urban sprawl is visible to residents as it increases the cost of vehicle maintenance and service provision, and rate of energy consumption. The increased unplanned demand for water and electricity as a result of sprawl affects the structural distribution and supply of these services, and the high cost of service provision has posed serious problems (Cobbinah and Amoako, 2014). 9. Several factors are contributing to the urban expansion in the GKMA, including the price of land, individual housing preferences, transportation, and the application of land use planning policies at the metropolitan level. Developers seek lower prices in the more peripheral areas as the price of land at the outskirts is much lower than the price of land zoned for housing or development of services in the city center. Peripheral land therefore becomes a highly attractive target for investors and developers and has resulted in the conversion of agricultural or nature reserves to housing and commercial development in the metropolis. This coincides with a preference among young families to purchase a detached or semi-detached house in the suburban communities that they perceive to be safer for their children. At the same time, improved transportation links and increasing use of private vehicles enables this lifestyle. In addition to the apparent pull of the peri-urban communities, negative ‘pushes’ of the inner city center have also been noted, including a poor environment (poor sanitation and waste management challenges), social problems (poor governance and management) and safety issues (crime and social conflict) (Cobbinah and Amoako, 2014). 10. Kumasi’s economic growth is accompanied by an exponential growth in motorization and built-up area while there is underinvestment in transport systems and infrastructure. As most large and medium-size African cities, Kumasi has faced a rapid increase in motorization on a road network that inadequately strains against the supply. Vehicle ownership in Ghana has increased six-fold over a 25-year period, from 40,000 per thousand population in 1990 to 260,000 in 2015. The expansion in city size and decline in density has made it difficult for urban roads and public transport to serve the market demand. The underinvestment has been especially marked in intermediary cities. In the absence of formal public transport, informal public transport flourished in all urban areas. 11. The current model burdens the transport system with serious externalities and inefficiencies. In Ghana, the cost of fatalities and serious injuries arising from road crashes is estimated at US$4.55 billion a year, or 8.3 percent of GDP (GRSF/World Bank, 2020). Congestion, another important externality, is a major source of productivity loss in urban areas. In Kumasi for example, congestion accounts for an average income loss of 21.9 percent for trotro operators and 9 percent of productive hours a day and more than two workdays a month for formal sector employees. Furthermore, the vehicle fleet is responsible for 80 percent of air pollution, which is responsible for around 3,000 deaths in Accra alone per year. 12. Walking and public transport are the main modes of transport in Kumasi, especially for low income groups. Walking is the main mode to access jobs, markets, and schools (50 percent) while public transport (trotro , taxi, and bus) and private cars constitute around 43 and 5 percent, respectively. Motorcycles, although increasingly popular, represent an insignificant proportion compared to other motorized modes (Arroyo, 2020). 13. Access to jobs by public transport modes is increasingly challenging for Kumasi residents. Two-thirds of the population in Kumasi do not have access to half of the city jobs within an hour’s reach using public transport (Arroyo, 2020). Mobility constraints such as congestion, lack of a proper transit system, limited road supply, and last-mile connectivity issues constrain people’s access to opportunities. Low-income areas tend to be particularly isolated to access Mar 25, 2022 Page 6 of 16 The World Bank Kumasi Urban Mobility and Accessibility Project (KUMAP) (P178767) jobs by public transport because they live far from jobs and due to lack of last mile connectivity. Unpaved roads in neighborhoods do not allow access to minibuses. The isolation is especially prominent during the rainy season. Women and people with disabilities face particular challenges: the former tend to travel more (than men) during off-peak hours when services are less frequent, and the latter are often challenged by physical barriers to either access transport vehicles, especially trotros, or to navigate sidewalks and other urban/road infrastructure. Figure 2 Accessibility Analysis to jobs within 60 minutes by public Figure 3 Accessibility Analysis to schools within 60 minutes by public transport transport Organization of Passenger Transport in Kumasi 14. Underinvestment in a formal public transport system stands as the driving force of the proliferation of informal public transport services through private operators. In Kumasi, informal minibus-based, privately-operated-owned transport is prevalent and has largely limited the existence of formal large bus operations. Minibuses — locally called trotros — took over public transport service provision in the 1990s following the public transport operator’s collapse, firmly establishing them as the main public transport operators throughout the country. Trotros are typically 14- to 18- seater vehicles, invariably second-hand imports and old, although generally in better condition than in some other West African countries. Trotro routes operate between pairs of terminals and serve a fixed route with dispatches occurring only when full capacity is reached; functional at busy times, yet inefficient at off-peak times due to uncertainty in waiting times. Passengers often sit in the vehicle in hot conditions for up to an hour awaiting departure. Vehicle idling within terminal areas is rampant causing congestion both in the terminal and surrounding roads. Given capacity is often reached at dispatch, it becomes virtually impossible to board a vehicle within the route’s first two to three kilometers, forcing passengers into negative commuting distances by foot to terminals to board a vehicle. This is advantageous for transport unions and terminal staff but has strong disadvantages for customers. Moreover, it further destabilizes the sector by creating market gaps swiftly filled by unauthorized vehicles, known as floaters, that operate along the route that follow no operational premise and are not part of the terminal-based units. 15. The Trotro private informal sector is responsible for financing, owning, maintaining, and operating virtually all active public transport vehicles and carries all financial risks for their services . Except for buses purchased by the GoG, the trotro industry operates with an increasingly aging fleet of well above 10 years featuring inefficient and unsafe conditions unfit for public transportation service provision. Fleet renewal, modernization, and upgrade are thus urgently required. Mar 25, 2022 Page 7 of 16 The World Bank Kumasi Urban Mobility and Accessibility Project (KUMAP) (P178767) 16. The public transport sector in Kumasi had effectively been self-regulated and was recognized as such by the authorities. The unions, and in particular the Ghana Private Road Transport Union (GPRTU), have very effectively established their position as gatekeepers. In one sense, they have a quite effective framework within which new routes can be formed; a new local route is established by concertation between operators willing to exploit the route and the local affiliates within the relevant branch, resulting in the granting of a charter to operate the route. This charter is effectively a route-operating license granted by the union, not by city authorities. Enforcement of licenses and operations by unions is highly effective through their control and authority over terminal operations and management. Climate change and urban mobility 17. GKMA’s rapid urbanization and inadequate urban planning are contributing to both an exponential growth of greenhouse gas emissions (GHG) emissions and the city’s vulnerability to climate change effects. In Ghana, transport is the main source of pollution with estimated 80 percent of air pollution attributable to motorized vehicles. Vehicle GHG emissions increase because of inefficient urban planning coupled with rapid urbanization, poor vehicle maintenance, import of second-hand, over-used cars, and traffic congestion. The average age of a vehicle in Ghana is about 14.2 years, a figure that rises significantly for public transport fleets. Congestion causes an average income loss of 21.9 percent for trotro operators in the GKMA. The same goes for the formal sector which experiences an average loss of 9 percent of productive hours a day and of more than two workdays in a month (Arroyo, 2020). Furthermore, rapid growth in flooding areas, without proper drainage infrastructure translates on frequent mobility disruptions in Kumasi. These disruptions are becoming more frequent with more frequent flashfloods. Institutional Arrangements of Urban Transport in Kumasi 18. Urban mobility in Ghana is affected by the existing fragmentation between national and local governments and lack of coordination mechanisms. Several ministries (Ministry of Transport, Ministry of Roads and Highways, Ministry of Local Government, Decentralization and Rural Development), central government institutions (National Road Safety Authority, Police Services), Regional Coordinating Council, and multiple actors at local level (Metropolitan, Municipal or District Assemblies (MMDA)) and Departments of Transport have a joint responsibility as stakeholders in the urban mobility agenda. Yet, ambiguity pervades in the performance of these roles, as does a lack of coordination. 19. The institutional capacity of urban mobility institutions in the GKMA is limited by the shortage of trained and specialized staff in urban mobility. Some MMDAs have established transport departments (TDs) to provide basic planning and regulatory service of urban mobility, but with low or no capacity to fulfill their responsibilities as mandated by law. Out the eight assembles under the in the Greater Kumasi Metropolitan Area (GKMA) only two (Kumasi and Ejisu) have properly constituted TDs with some requisite staff and capacity,8 the rest of the MMDAs have officers nominated from the Assembly to serve as Transport Focal Persons. 20. Land use management and its coordination with transport planning at the local level is weak. Development planning and spatial planning institutional frameworks operate separately in Ghana, and this dual planning system hampers effective policy integration and results in unplanned urban expansion and insufficient basic services. The most pressing need is to establish the link between spatial plans and development plans in all dimensions, including transport, to strengthen and institutionalize coordination. This is already emphasized in the National Urban Policy but has not been implemented yet. In addition, the low capacity of physical planning departments at local levels, lack of institutional/sectoral coordination, political interference in planning practices, and a complex land tenure system have 8 With the support of the “Smart Cities� program, effective since 2020 and financed by AFD, the Kumasi TD has pioneered the development of a digital platform for the management and inventory of public transport services and providers. Mar 25, 2022 Page 8 of 16 The World Bank Kumasi Urban Mobility and Accessibility Project (KUMAP) (P178767) hindered integrated planning and development. This lack of coordination at the local level is especially detrimental to GHG emissions mitigation actions related to urban transport systems. Sectoral Policies and Plans 21. The National Transport Policy (NTP) lays out the Government’s plan to modernize the transport sector and diversify its investment program’s focusing on ports, inland waterways, railways, and multimodal transport corridors to neighboring landlocked countries. The NTP outlined five areas of focus for the success of the policy: (i) innovation and use of technology through the participation of the private sector, (ii) building people centered transport services, (iii) improved fiscal management in the sector; (iv) addressing the challenges of informality in transport service delivery; and (iv) increased institutional efficiencies through appropriate reforms. Whilst the NTP has also identified a four year action plans, its detail implementation is yet to be worked out by the relevant ministers. 22. Ghana is committed to developing sustainable and inclusive transport systems. The NTP’s primary goal is to develop sustainable, inclusive, and equitable transport systems. In this regard Ghana, as a signatory to the Paris Climate Change Agreement, is committed to achieving a 15 percent reduction in its GHG by 2030. As the transport sector typically accounts for 15 to 20 percent of a country’s GHG emissions, the NTP envisages the sector’s decarbonization as a significant contribution to this target. 23. Aligned with these national policies, the KMA has developed urban mobility plans and studies to promote a green and competitive city. An urban mobility master plan was completed identifying critical institutional bottlenecks as well as priority interventions, such as mass transit development through Bus Rapid Transit (BRT). Based on the master plan, the GoG has recently finalized the study of “Public Transport Sector Enhancement in Kumasi: Bus Operation Preparation and BRT Project Feasibility Study�, funded by the Agence Française de Développement (AFD). This study provided a roadmap to: (i) Enhance of the institutional framework by creating a Kumasi Public Transport Authority; (ii) Implementation of phased infrastructure improvements, with emphasis on two BRT pilot corridor (busiest, most trafficked corridors selected from a 8-corridor mass transit network totaling 61 km – Figure and 6); (iii) Enhancement of Urban Mobility regulation and operations in selected corridors; and (iv) Enhancement of NMT operating conditions and associated infrastructure. All this with a focus on the build-back better approach, aimed at strengthening the transition towards greener and sustainable modes of transport. (ROM Transportation Engineering, 2021). Mar 25, 2022 Page 9 of 16 The World Bank Kumasi Urban Mobility and Accessibility Project (KUMAP) (P178767) Figure 4 Mass transit corridors proposed for improvements of which 3 were categorized as BRT (labeled) (ROM Transportation Engineering, 2021) 24. Kumasi’s urban mobility needs and challenges, coupled with its local political commitment towards action, offer a promising platform for action and rollout of transformative initiatives in urban mobility . Client buy-in for the project is expressed by the local government commitment and their call for support. Similarly, the Project has fostered interest and appetite for engagement from Development Partners (DP) and Financing Institutions such as AFD, Swiss State Secretariat for Economic Affairs (SECO), and European Union (EU). Relationship to CPF 25. The proposed project is aligned with the World Bank’s Country Partnership Framework (CPF) (FY22-26) and with the World Bank’s twin goals of ending extreme poverty and promoting shared prosperity. The proposed project supports four objectives within the CPF’s three focus areas. Specifically, the project supports: (i) Objective 1.4: Improved Connectivity for Access to Productive Opportunities, through the identification and enactment of reform initiatives essential to develop clean, inclusive, and accessible transport systems benefitting women and the disabled while promoting private capital mobilization and establishing pioneering Public-Private Partnerships (PPPs) in urban transport; (ii) Objective 2.3: Increased availability of basic services in underserved urban areas, by improving urban mobility conditions with greater impact on isolated areas in GKMA thus enhancing connectivity and increased accessibility to urban opportunities; (iii) Objective 3.2: Improved Management of Natural Resources and Climate Change Risks, through fleet modernization and operational optimization of the public transport system to reduce per capita’s motorized vehicle - kilometers run, and reducing high-polluting vehicles having direct impact on GHG emissions reduction; and (iv) Objective 3.3: Improved household and community resilience to shocks, by designing/adapting/retrofitting/upgrading urban infrastructure with climate resilient features to mitigate the effects of climate events and shocks. The project will complement and build up on other WB financed activities in Kumasi. C. Proposed Development Objective(s) Note to Task Teams: The PDO has been pre-populated from the datasheet for the first time for your convenience. Please keep it up to date whenever it is changed in the datasheet. Please delete this note when finalizing the document. The Project Development Objective is to improve mobility, accessibility, and safety along selected corridors of the Greater Kumasi Metropolitan Area. Key Results (From PCN) 26. The following PDO level indicators will measure the progress towards achieving the PDO: a. Average daily gender-disaggregated ridership on the BRT system (passengers per weekday), b. Average peak-period in-vehicle travel time for BRT system users (minutes), c. Percentage of GKMA residents with access to the city center within 60 minutes by public transport modes disaggregated by gender, income-level (percentage), d. Annual number of road traffic fatalities broken down by road user type and disaggregated by gender along the selected corridor, Mar 25, 2022 Page 10 of 16 The World Bank Kumasi Urban Mobility and Accessibility Project (KUMAP) (P178767) e. Satisfaction rating by public transport users of the BRT system, including perception of ease of access, safety, and comfortability, disaggregated by gender (rating). D. Concept Description 27. Development of an integrated multimodal public transport network anchored on strategic mass transit corridors, operated under the BRT operational premise, has been recommended9 to improve mobility in GKMA. The prefeasibility study(ROM Transportation Engineering, 2021) for the city of Kumasi formulated the implementation of a BRT-based mass transit public transport system to: (i) address urban mobility, connectivity, and accessibility challenges; (ii) decarbonize the urban transport sector to reduce GHG emissions and mitigate/adapt to climate impacts; (iii) ensure an inclusive, equitable and sustainable mobility to all; and (iv) support initiatives and pilots for the digitalization of the sector. 28. The project will be backed by solid analytical works supported by WB, IFC, AFD, private lenders, and strong government engagement. Areas of particular focus will be: a. Digitalization and scale-up of ongoing “smart city� and ongoing Digital Development initiatives, b. Decarbonization of the transport sector through (i) the adoption of sustainable, low-carbon vehicle technologies/sources of energy for the sector, and (ii) the promotion of modal shifts from carbon- intensive modes (private vehicle, 2- and 3-wheelers) towards NMT and integrated mass transit modes, c. Alignment of transport investments with sustainable urban growth principles, d. Mobilization of private sector financing for the BRT system components (fleet provision and operations, fare collection and revenue management, etc.) and other urban mobility infrastructure (terminals, parking, etc.) through the strengthening of private sector operators, e. Development of institutions and human capital strengthening the urban transport sector, f. Development of an investment program in close partnership with AFD, EU, IFC, and other DPs. 29. While the project activities proposed are a combination of investments and institutional strengthening, the BRT system is expected to be developed and operated through PPP arrangements. Following the principles of Complete Street approach10, the project would incorporate the provision of safe, convenient, secure access and crossings for pedestrians and improved street lighting. To guide future development along the BRT corridor, a Corridor Development Strategy (CDS) will be prepared based on Transit-Oriented Development (TOD) principles,11 and engaging a diverse group of public, private, and civil society stakeholders. The CDS will establish a common and spatialized high-level vision for future urban growth along the transport corridor aiming to encourage suitable land-use mixes and higher densities of 9 Both studies: analytical work conducted by the Bank (Arroyo, 2020) and BRT Feasibility (ROM Transportation Engineering, 2021) recommend BRT as a viable mass transit system for Kumasi. 10 Complete Streets are streets designed and operated to enable safe use and support mobility for all users. Those include people of all ages and abilities, regardless of whether they are travelling as drivers, pedestrians, bicyclists, or public transportation riders. 11 Transit-Oriented Development (TOD) is a multi-disciplinary planning and design strategy. It promotes sustainable urban development that creates incentives for people to take public transit, walk or cycle rather than travel by car. TOD is achieved by concentrating urban services, communities and activities within walking distance from mass rapid transit stations, developing quality urban space with a diverse mix of land uses, and enhancing universal accessibility. (Basat, 2018). For more details on TOD principles see: TOD Standards, ITDP. Mar 25, 2022 Page 11 of 16 The World Bank Kumasi Urban Mobility and Accessibility Project (KUMAP) (P178767) residential and commercial developments, and to promote the creation of attractive and livable places around BRT stations. 30. The project’s total estimated cost is US$ 440 Million. Of the total, US$200 million shall be financed by IDA/IBRD funds while US$50 million are anticipated from the private sector through PPP arrangements. Compensations associated with involuntary resettlement, livelihood disruption, and/or revenue loss and some potential working capital subsidies are suggested to be covered by the Government of Ghana (US$20million) as its contribution to the project. 92.5% of the proposed financing is allocated for the 28 km of BRT system (Infrastructure and associated social costs and rolling stock) while 4.2 % and 3.3% of the funding are allocated for institutional reforms and urban development activities along the corridor respectively. At this stage the financing gaps stands at US$170 million and is subject to discussions with DPs for potential financial and/or technical support: to date the EU has expressed interest to be part of the project with a potential co/parallel financing arrangement while AFD, SECO, and Japan International Cooperation Agency (JICA) have requested to be kept informed on the project prepartion for future consideration. The team is also exploring financing options with the Korean Exim Bank. The project preparation will continue exploring and discussing financing options with DPs. 31. Private Capital Mobilization: The project intends to mobilize private capital for the financing, procurement, operation, maintenance and management of the BRT system including rolling stock and ITS components. To this end, engagement and cooperation with IPG and IFC specialists with expertise on project finance/PPP in urban transport has been a priority from the onset and will continue throughout the project’s life cycle. The development of a robust, flexible business plan and a solid, sensible industry transition strategy is fundamental to attract competent and qualified private sector entities with investment interests in the project and to ensure the successful implementation of the mass transit system in Kumasi. 32. The project is expected to be structured around three components: 33. Component 1 – Implementation of a BRT system (US$ 407 million financed by IDA/IBRD with co/parallel financing from other DP and private sector, US$20 million by GoG and US$50 million from the private sector). This component will support the implementation of a safe, resilient, green, and integrated mass transit system on selected corridors in the GKMA. This component will include the following sub-components: a. Subcomponent 1.1 – Corridor infrastructure rehabilitation/reconstruction (US$ XXX million financed by IDA/IBRD). This subcomponent will finance: i) Civil works for road infrastructure rehabilitation/reconstruction, including all associated infrastructure along the corridor; ii) Site specific interventions to improve user experience (e.g. bus stops, walkways) and traffic flows of the corridor iii) Studies for environmental and social impact and ESF management preparation for the project, iv) Implementation of environmental and social recommendations and mitigation measures before and during construction, v) Studies for detailed design and construction supervision activities. b. Subcomponent 1.2 – BRT System Development and Operationalization (US$ XXX million financed by IDA/IBRD). This subcomponent will finance: i) Construction and equipment of BRT facilities along the BRT corridor, Mar 25, 2022 Page 12 of 16 The World Bank Kumasi Urban Mobility and Accessibility Project (KUMAP) (P178767) ii) Provision of relevant Intelligent Transport Systems (ITS)12 , iii) Provision of working capital subsidy for the concession of the BRT operation (TBD with business plan and transaction advisor) , iv) Implementation and monitoring of the Social Management Plan including its actions to mitigate gender- based violence (GBV) and actions to improve women’s mobility and economic participation options.13 34. Component 2 – Public transport industry transition supporting the development of mass transit (US$ 18.5 million financed by IDA/IBRD). This component will work on ring-fencing the definition and structuring of PPP arrangements for the implementation of a BRT system. This component will finance: a. Subcomponent 2.1: Strengthening of the institutional, regulatory, and governance enabling environments. This subcomponent will include technical assistance (TA) to: i) Support the development of the necessary institutional, legal, regulatory, and governance reforms; ii) Modernize, harmonize, and consolidate the transport sector’s management framework; iii) Modernize and build capacity traffic management, road safety, at GKMA transport department including the traffic police force. b. Subcomponent 2.2: Transaction advisory for public transport industry transition. This subcomponent will include technical assistance to: i) Restructure and optimize the public transport network to a multimodal system, ii) Assess the current situation of incumbent public transport operators and other industry stakeholders along the selected mass transit corridors and define a professionalization strategy in urban mobility14 supporting the implementation of Kumasi’s first BRT system, iii) Implement the professionalization strategy, social management and impact mitigation measures, for the transition to the formal sector of informal public transport actors, iv) Conduct a financial evaluation and structure a business plan for BRT system operations (with support/cooperation with IFC/MIGA teams as transaction advisors), v) Define and deploy of a stakeholders’ engagement program and a public relations and media strategy to generate support for and disseminate information on the BRT system, ensuring users’ buy-in. 35. Component 3 – Urban Mobility and Land Use Planning, Institutional Strengthening and Human Capital Development (US$ 14.5 million financed by IDA/IBRD). This component will update and improve the existing planning frameworks in urban mobility and urban development to ensure the sustainable and resilient use of urban land along the selected mass transit corridors, along with institutional strengthening, capacity building and human capital development in urban mobility for the GKMA. This component will finance: 12 Preliminary ITS for consideration are Automatic Fare Collection System (AFCS) and Automatic Vehicle Location System (AVLS) (hardware and software) which will enable a centralized control of bus operations and fare management, and a User Information and Security System (UISS) to enhance BRT user information and experience. A project feasibility analysis will determine the extent and scope necessary to satisfy the specific needs within the GKMA context. 13 Design guidelines for BRT infrastructure shall observe and address current concerns expressed by women in relation to constraints experienced while using public transport. The desired design guidelines to be adopted during detail design shall standardize the provision of open and well-lit facilities supported by a UISS and an efficient GRM in place. 14 Including, among others, multidisciplinary training offerings to industry’s stakeholders on entrepreneurial principles, fleet renewal mechanisms, participation of and affiliation to social security services and benefits, etc. Mar 25, 2022 Page 13 of 16 The World Bank Kumasi Urban Mobility and Accessibility Project (KUMAP) (P178767) a. Subcomponent 3.1 – Urban Mobility Planning. This subcomponent will focus on complementing the institutional and regulatory frameworks for urban transport at a city-wide level of GMKA, as well as developing a strategic roadmap for other intermediary cities. In line with government priorities and building on the previous analytical work, the proposed activities will support i) and expand the digitalization of the urban mobility sector in GKMA, ii) the development of sustainable urban mobility plans in selected intermediary cities. iii) The development of a traffic management plan for Kumasi focusing on intersection and terminal management improvement. b. Subcomponent 3.2 – Urban and Land Use Planning. This subcomponent aims to strengthen the linkage between urban transport planning and urban growth management in the GKMA. It will finance the: i) Development of a TOD Plan along the selected mass transit corridors including the definition of a Land Value Capture strategy, ii) Identification and design of key area development plans for public spaces around selected sites within the catchment area of the selected mass transit corridors with high potential transformational prospects (quick-win investments). c. Subcomponent 3.3 – Institutional Strengthening and Capacity Building. This subcomponent will support improvements in transport governance and efficiency for GKMA’s transport sector agencies and stakeholders. It will finance: i) Project management support through TA for the PIU in procurement, environment and social safeguards and TA for the implementation of social measures, etc., ii) Capacity building and TA activities on important cross-cutting issues including urban mobility planning, traffic management, gender, citizen engagement, road safety, climate change adaptation etc. , iii) Human Capital Development including TA and training in the transport sector with focus in urban mobility and road safety, to be developed in collaboration with universities and vocational training institutions,. iv) Project implementation, monitoring, and evaluation. Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. Please delete this note when finalizing the document. Legal Operational Policies Triggered? Projects on International Waterways OP 7.50 No Projects in Disputed Areas OP 7.60 No Summary of Screening of Environmental and Social Risks and Impacts . Note to Task Teams: This summary section is downloaded from the PCN data sheet and is editable. It should match the text provided by E&S specialist. If it is revised after the initial download the task team must manually update the summary in this section. Please delete this note when finalizing the document. Mar 25, 2022 Page 14 of 16 The World Bank Kumasi Urban Mobility and Accessibility Project (KUMAP) (P178767) Note: To view the Environmental and Social Risks and Impacts, please refer to the Concept Stage ESRS Document. Please delete this note when finalizing the document. . CONTACT POINT World Bank Haileyesus Adamtei Mengesha, Catherine Lynch Senior Transport Specialist Borrower/Client/Recipient Ministry of Finance Ken Ofori-Atta Minister info@mofep.gov.gh Implementing Agencies Kumasi Metropolitan Assembly Randy Wilson Director wrandy218@gmail.com FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects APPROVAL Task Team Leader(s): Haileyesus Adamtei Mengesha, Catherine Lynch Mar 25, 2022 Page 15 of 16 The World Bank Kumasi Urban Mobility and Accessibility Project (KUMAP) (P178767) Approved By APPROVALTBL Country Director: Pierre Frank Laporte 11-May-2022 Note to Task Teams: End of system generated content, document is editable from here. Please delete this note when finalizing the document. Mar 25, 2022 Page 16 of 16