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FOR COICIAL USE ONLY

Report No. 6693-GH

STAFF APPRAISAL REPORT

REPUBLIC OF GHANA

STRUCTURAL ADJUSTMENT INSTITUTIONAL SUPPORT PROJECT

March 20, 1987

Western Africa Projects DepartmentPublic Sector Management Division

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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GHANA STRUCTURAL ADJUSTMENT INSTITUTIONALSUPPORT PROJECT

CURRENCY EQUIVALENTS

Currency Unit Calendar 1985 From January 1986 From September 1986US$1 054.054 090.0 0128-155 1/

Cedi (0) 1 US$o.0185 US$0.oll US$0.0073-0.0066

FISCAL YEAR

JANUARY 1 - DECEMBER 31

ABBREVIATIONS

COS Committee of SecretariesCPMU Central Project Monitoring UnitDMFAS Debt Management and Financial Analysis SystemsEFF Extended Fund FacilityELU Economic Liaison UnitEPU Economic Policy UnitERP Economic Recovery ProgramGIMPA Ghana Institute of Management and Public AdministrationGLSS Ghana Living Standards Measurement SurveyGOG Government of GhanaGSS Ghana S-atistical ServiceIERD International Economic Relations DivisionIPAD Investment and Project Analysis DivisionLSMS World Bank's Living Standard Measurement StudyMFEP Ministry of Finance and Economic PlanningNRS National Revenue SecretariatODA Overseas Development Administratior.OHCS Office of the Head of the Civil ServicePIP Public Investment ProgramPMU Project Management UnitPNDC Provisional National Defense CouncilPPF Project Preparation FacilityPRD Planning and Research DivisionSAF Structural Adjustment FacilitySAP Team Structural Adjustment Program TeamUNDP United Nations Development Program

1/ A dual exchange rate system was established on September 19, 1986 whena foreign exchange auction was instituted for specified transactions.The 090 rate applied to the first window (cocoa and residual oilexports, petroleum and essential drugs imports, and central governmentdebt service contracted before January 1, 1986); the rate on thesecond window wat established at the weekly auction. The two rateswere unified with effect from February 20, 1987; all transactions arenow valued at the rate emerging in the weekly auction. In the weekending February 27, 1987, the marginal rate at the auction was0155=US$1.00.

FOR OFFICIAL USE ONLY

TABLE OF CONTENTS

Page

Credit and Project Summary i-iiJ

I - BACKGROUND

Introduction .. 1Overview of the Economy ................................. 1

II - PUBLIC SECTOR MANAGEMENT: CONSTRAINTS AND REFORMS

Reform of Economic Management Institutions .............. 2Reform of the Civil Service ............................. 4Bank Support for Public Sector Management ............... 7

III - THE PROJECT

Project Objectives ..................... 8Project Components ...................................... 9A. Economic Policy and Management ................ ....... 9B. Public Service Productivity ......................... 13C. Structural Adjustment Studies and

Advisory Services ......................... 14D. Poverty Monitoring ..................... 17

IV - PROJECT COSTS, FINAN'CING AND PROCUREMENT

Project Cost ............................... 17Financing Plan ................................ 19Procurement ............................... 19Disbursement ............................... 20

V - PROJECT IMPLEMENTATION ............................... 21

VI - BENEFITS AND RISKS ............................... 23

VII - AGREEMENTS .............. 23

This report was based on the findings of a World Bank mission consisting ofMessrs. G. Lamb, L. de Merode, Ms. B. Nunberg (Bank) and J.C. Boss6(consultant) which visited Ghana during October 1986 to appraise theProject. The report was subsequently revised and finalized byMs. J. Albert (consultant). Ms. M. Kalina provided secretarial support.

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

ANNEXES

Annex I Implementation ScheduleAnnex II Work ProgramsAnnex ITT Project Cost Tables

Table 1: Summary cost tableTable 2: Project cost by component and yearTable 3: Project cost by summary account and year

Annex IV Agreed Terms of Reference for ODA Assistance toGovernment

Annex V UNDP/World Bank Assessment of Social Dimensionsof Structural Adjustment in Sub-Saharan AfricaProject Summary

Annex VI Procurement Plan

GHANA

STRUCTURAL ADJUSTMENT INSTITUTIONAL SUPPORT PROJECT

Credit Summary

Borrower: The Republic of Ghana

Credit Amount: SDR 8.6 million (US$10.8 million equivalent)

Terms: Standard IDA terms

Cofinancing: ODA(UK) (US$1.1 million)

ProiectDescription: It would include: (a) establishment of a policy advisory

staff under the Secretary of Ministry of Finance andEconomic Planning (MFEP); (b) creation of a unit withinthe office serving the Head of state and the Government(the "Castle") charged with processing of economic policydecisions and aid agreements; (c) expansion of MFEP'scapacity to undertake public investment programming,budgeting, expenditure forecasting and control, revenuecollection, debt management and aid coordination;(d) execution of a staffing and functional review of thecivil service and a related salary policy review, andestablishment of a sound administration and personnelmanagement system; (e) design of a coherent redeploymentprogram and support for redeployment and trainingactivities; (f) provision of studies and advisory servicesin support of critical structural adjustment program taskscarried out where possible by mobilizing skilled Ghanaiansfrom outside the public service; and (g) implementation ofa living standards measurement survey. Overall guidanceto project management would be provided by theGovernment's Structural Adjustment Program Team. A projectdirector responsible for day-to-day project operations hasbeen appointed to head the newly-formed Project ManagementUnit. UNDP co-financing for the economic planning andtraining components is under discussion. The seven-yearproject would finance both local and internationalconsultants, in-country and overseas training, officeequipment (mostly computers), vehicles and operatingmaintenance costs oif vehicles and equipment. ODA willco-finance the civil service and training components.

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Estimated Costs (US$ '000)Local Foreign Total

A. Economic Policy and ManagementEconomic Policy Unit 164.8 1,651.2 1,816.0Economic Liaison Unit 77.2 137.6 214.8Public In.vestment Planning 318.8 697.2 1,016.0Budget and Expenditure Control 37.7 441.9 479.6Aid Management 47.2 100.8 148.0Debt Management. 25.0 169.1 194.0Revenue Mobilization 310.2 876.5 1,186.7Training 127.8 156.2 284.0

B. Public Sector ProductivityCivil Service Management 98.9 622.6 721.5Redeploy. & Staffing Review 180.1 1,099.7 1,279.8Salary Policy 17.5 125.5 143.0

C. SAC Studies & Advisory Services 1,336.5 728.5 2,065.0D. Poverty Monitoring 699.4 695.7 1,395.1E. Project Management 204.7 547.2 751.8

Baseline Costs 3,645.5 8,049.6 11,695.1Contingencies 1,603.0 859.1 2,452.1

Total Project Costs !,248.5 8,908.6 14,157.1

Financing Sources:Local Foreign Total

IDA 3.0 7.8 10.8Government 2.2 -- 2.2ODA (UK) -- 1.1 1.1

Total 5.2 8.9 14.1

Estimated Disbursement: US$ million (IDA FY)

1987 1988 1989 1990 1991 1992 1993

Annual 0.6 1.7 2.6 2.6 2.4 0.6 0.3Cumulative 0.6 2.3 4.9 7.5 9.9 10.5 10.8

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Project Benefitsand Risks: The project would support a far reaching and politically

difficult public sector reform program. In addition tothe SAL-related benefits, overall efficiency of theministries and agencies dealing with economic and publicsector management would increase. Improved workingconditions, logistical support, higher salaries (fromreallocation of budgetary savings from redeployment),and training opportunities would permit Government toattract and keep more qualified civil servants in themedium term. There are three risks which the TA projectshares with the Structural Adjustment Program: (a)dependence on a small number of Government officials,who constitute the core economic team; (b) the proposedsplit of MFEP into two distinct ministries, which mightadversely affect implementation, especially if theresource allocation function (public investment programand budgeting) were divided; and (c) politicaldifficulties in carrying out the civil serviceredeployment program. Government management weaknesswould be mitigated by streamlining project organizationand encouraging the hiring of Ghanaian and/or externalconsultants. On (b) Government has assured-IDA that itwill be consulted on any proposed major changes in theorganizational structure and functions of MFEP. Toovercome resistance to civil service reform, Government,with IDA support, is exploring other sources of externalassistance to help ease redeployed workers' transitioninto other productive employment.

Economic Rate of Return: Not applicable

Staff Appraisal Report: No. 6693-GH

GHANA

STRUCTURAL ADJUSTMENT INSTITUTIONAL SUPPORT PROJECT

STAFF APPRAISAL REPORT

I - BACKGROUND

Introduction

1. The project originated from a Government request for assistancefor public sector management reform in the context of designing thestructural adjustment program. A preliminary mission in October 1985agreed upon a broad program of action with Government. The project wasprepared by the Government with the assistance of two preparation missions,in February/March and July 1986, and appraised in October 1986. The mainactions on public sector management and civil service reform were agreedduring the Structural Adjustment Program appraisal in July 1986 and areincorporated in the Structural Adjustment Program President's Report.Effectiveness of the Structural Adjustment Credit agreements is a conditionof effectiveness of the proposed project (para 51). A Project PreparationFacility (PPF) of US$750,000 was approved in June 1986. PPF funding wasused to help prepare the 1986-88 Public Investment Program, the budget andexternal debt management components and to begin inicial survey work onpoverty monitoring.

Overview of the Economy

2. Ghana lies on the Gulf of Guinea on the west coast of Africa.Over 70 percent of the 12.42 million inhabitants (1984 census) live in thesouthern half of the country, where the econortic base is stronger. WithinWest Africa, Ghana once enjoyed a fairly high standard of living. However,poor economic policies, the drought, and the oil price increasescontributed to a declining GDP in the 1970s and early 1980s. Poor economicgrowth and a high annual population growth rate of three percent havecaused a substantial drop in real per capita income to a 1985 level ofabout US$390. As a result, almost half the population is estimated to livein absolute poverty. The country's basic needs indicators, once the bestin Africa, are now no better than those in other sub-Saharan Africancountries with comparable per capita incomes. Modern health services areavailable to only about a third of the people, and less than half haveaccess to safe water. Although the education system is well established,50 percent of adult men and 70 percent of adult women have received noformal education.

3. Throughout the 1970s, GhAna's economy was poorly managed. Largebudget deficits, driven by the need to support a sprawling, inefficientpublic sector, fuelled money supply expansion and fed inflation. Between1970 and 1982, the real exchange rate appreciated by 625 per cent,resulting in a deterioration in export performance. Aid levels fell due to

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poor policies. Thus, import capacity was heavily constrained. Controlsand rationing caused further distortions. As a result, investment, savingsand output levels declined, per capita income fell and inflation averaged44 per cent over the 1970-82 period. In the early 1980s, Ghana's problemswere exacerbated by a severe drought, a deterioration in the terms oftrade, and the need to absorb a million returnees from Nigeria.

4. Since April 1983, when the Government announced a major EconomicRecovery Program (ERP), there has been a marked improvement in economicpolicies and an impressive recovery of the economy. The Governmentrecognizes that to sustain these initial gains, substantial furtheradjustment over the remaining years of this decade, if not longer, will berequired. The structural adjustment program represents the first stage ofthis longer term adjustment process. The initial response of the economyto the significant adjustment efforts to date bodes well for the outcome ofthe further measures planned. Nonetheless, the path ahead is long anddifficult, and success is contingent on political w±ll and a favorableexternal environment, sizeable concessional ail' flows, and strongereconomic management institutions.

II - PUBLIC SECTOR MANAGEMENT: CONSTRAINTS AND REFORMS

5. From the time it took office, the Government recognized that itinherited major administrative problems. Because of the long period ofeconomic and institutional deterioration, virtually all Government agencieshad suffered major declines in productivity and effectiveness. While thecivil service as a whole was excessively large, all key agencies lackedtechnical staff, equipment and supplies to do routine tasks. Inadequateorganization and processes further limited the Government's administrativecapacity. Initially, the Government prepared an ambitious organizationalreform, to decentralize responsibilities from the central governmentministries to regional and district levels. Progress in this initiativehas been slow, both because the problems are not solely organizational andbecause it is very difficult to address the problems of the entireadministration at once. Consequently, and as part of the structuraladjustment process, the Government has opted for a more focussed andrealistic approach to public sector management reform that addresses themost cLitical problems in the administration in a phased manner. Prioritywill be given to improving the effectiveness of economic maniagementinstitutions and productivity of the civil service.

Reform of Economic Management Institutions

6. The institutional decline has had a particularly serious impacton the core economic agencies. At the senior level, the policy role of keyeconomic agencies has been performed by a very small group of political andtechnocratic figures, who have orchestrated economic policy and dealt withcrisis management. They have received limited assistance from civilservants and from 3econded or advisory personnel drafted ad hoc for

particular tasks. In addition, the Government's administrative capacity toimplement policy decisions effectively is sorely inadequate.

7. The Ministry of Finance and Economic Planning (MFEP) has thecentral role in macroeconomic management. Its functions includemacroeconomic and financial policy-making, economic planning, oversight ofpublic investment, tranefers to state e1Lterprises, aid coordination anddebt management, supervision of government accounting, the budget andfiscal policy. Since 1985, actual revenue collection has been done by anautonomous institution, the National Revenue Secretariat (NRS), headed by acabinet-level Secretary. In spite of the breadth of MFEP'sresponsibilities, its leadership is thin: most decision-making isconcentrated in the Secretary for Finance and Economic Planning himself,who until early 1986 had only one Deputy Secretary to assist him.Currently there are two Deputy Secretary positions, but only one of them isfilled. The Ministry's leadership has had little in-house policy analysisor advisory capacity to draw on, particularly since the heads of theMinistry's four main divisions (Planning and Research, Investment andProject Analysis, International Economic Relations, Budget andAdministration) are themselves overstretched managing their own depleteddivisions.

8. Some of the Ministry's key functions have not been effectivelycarried out. Public investment programming was dormant until the Secretaryappointed a Public Investment Program (PIP) Task Force in mid-1986 tocomplete work on the 1986-88 PIP, assisted by IDA-financed consultants.The budgetary process has virtually collapsed over the last few years, dueto MFEP's increasing institutional difficulties, to extreme shortages offoreign exchange, and to the enforcement of limits on Government borrowingfrom the Central Bank. There is onl, limited consultation with spendingminibtries duting budget preparation, and poor integration of therecurrent, investment and foreign exchange budgets. The budget documentitself, which has appeared increasingly late in the fiscal year, has bornelimited relation to the actual release of funds, which has been mainlygoverned by cash availability on a day to day basis. Finally, expendituremonitoring is of insufficient quality and timeliness to provide adequatefeed-back into the budgeting cycle. With the rapid rise in borrowing anddebt service and in external activity since the economic recovery began,the Ministry has also experienced great difficulties in debt monitoring andmanagement, and in the coordination and monitoring of external aid. Untilrecently this was exacerbated by the absence of a clear allocation ofresponsibility within MFEP for debt management.

9. Major economic policy decisions must be approved by the Committeeof Secretaries (COS is equivalent to a Cabinet of Ministers). The COS iscomprised of heads of ministries and certain agencies and headed by aChairman who is effectively the Head of Government. Following review bythe COS many decisions must be approved in turn by the Provisional NationalDefense Council (PNDC), equivalent to a council of state, chaired by the

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Head of State. These two bodies and their staffs (commonly knowncollectively as "the Castle") have not yet dealt effectively with economicpolicy making for several reasons: their constitutional basis,organizations and division of responsibilities are still evolving; theirprocedures sometimes combine meticulous legalism with ad-hoc improvisation;they have had almost no staff in their Secretariats assigned or qualifiedto deal with economic matters. Coordination of economic policy has beenweak, since the highest levels of Government do not receive properlyprepared and timely Cabinet papers, agendas and circulation of decisionsfor implementation. Similarly, processing and approval of economicagreements -- especially for external aid -- have been delayed, at a greatcost to the economy.

10. The economic management reforms proposed under the ERP have threeimportant features. Firstly, the reforms are intended to provide theGovernment with urgently required integrating and coordinating mechanismsfor economic policy and management. Secondly, the reforms aim toinstitutionalize these key functions, which are often carried out on anad hoc and crisis management basis where little institutional learningtakes place. Reforms in each area therefore will incorporate staffing,procedural and organizational changes to begin the process of rebuildingthe administration's capacity. Thirdly, the reforms are designed to fitinto a longer-term program of institutional development, and to complementother efforts (some supported by IDA and other donors) at the sector level.The strengthening of the two MFEP divisions concerned with PublicInvestment, Planning and Research, and Investment and Project Analysis, forexample, also will provide the nucleus of trained staff, systems andprocesses for reconstituting macroeconomic planning. The public sectormanagement program, including the proposed project, is therefore to beviewed as an initial step in a longer term, continuing process ofinstitutional reform.

11. The organizational structure and decision-making process of theeconomic management institutions will soon be modified (para 20). In aDecember 1986 speech, the Head of State endorsed a proposal made by aUNDP-funded planning team to create a separate National Planning Commissionand to split MFEP into two distinct ministries. The NRS would be broughtback under the Minie.ry of Finance. The crucial requirement is that theresource allocation function of the MFEP (public investment programming andbudget) remain unified under the restructured Ministry of Finance.Assurances have been received that no major changes in organization,structural and functions of MPEP would be made without prior consultationwith IDA (para 52).

Reform of the Civil Service

12. Sharp deterioration of the quality and productivity of the civilservice has become the main constraint to better public sector management

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in Ghana. Between 1972 and 1982, the size of the civil service swelled atan annual rate of almost 15 percent, but real wages shrunk equally rapidly,with the sharpest decline at higher skill levels. By 1984 real wages fo-top civil servants were one-sixteenth of their 1977 level, and aboutone,-fifth of those for a comparable job in the private sector. Besideswages, working conditions also worsened: inadequate offices and equipment,little or no supplies, complicated by the inefficiency of too manyemployees. The result of these policies was overstaffing at lower civilservice levels, a proliferation of vacant posts at higher level.s and anexodus of competent persons at all levels. As the ERP starts to createmore alternatives in the private and parastatal sectors, the exodus mayaccelerate and in some agencies the extremely high vacancy rate oftechnical staff may totally p&ralyze their operations. For example, theOffice of the Controller and Accountant General at the end of 1985 had allfifty chief accounting offices and 70 percent of its senior accountantpositions vacant. The planning section of the Ghana Highway Authority in1984-85 was able to fill only one of its seven high level positions. Forcivil servants who remained, other sources of income have become anecessity, leading to chronic absenteeism, low morale and low productivity.Thus, what was once among the premier civil services in Africa is today inserious disarray.

13. The major institutions involved in civil service management havesuffered from this loss of skills and resources, and from thedemoralization of the remaining staff. Lacking central guidance andsupport as well as suffering from shortcomings of their own, personneladministration capacities and management systems at the sector anddecentralized levels are critically inadequate.

14. To respond to this problem, the Government has designed a fourpronged action program for implementation during the next three years,which lays the basis for more comprehensive reforms of the civil service inthe longer term. The key features of the reform areas are:

(a) Reducing the size of the civil service by 45,000 over the 1986-88period (from about 318,000 in January 1986). This reduction is akey target of the structural adjustment program and of the ERP.The reform is important both to reduce the congestion of staff inmany agencies that lowers effectiveness of essential staff, andto release the financial resources necessary to compensate moreadequately those who remain on the payroll. The reduction ofstaff will be obtained through a combination of a hiring freeze,natural attrition, enforcement of the retirement age, voluntaryretirements, the elimination of fictitious payroll entries, andlayoffs. In addition to utilizing the recent census of thepublic services to remove "ghosts' from the payroll, theGovernment is now designing a package of measures to provideincentives for voluntary retirement, and to ease the resettlementin the private sector of laid-off employees. This would include

cash and possibly deferred payments, an expansion of vocationaltraining opportunities, and possibly other measures. To establishthe basis for the Government's employment policy in the longerterm, a systematic review of staffing levels in the publicservice would be carried out in relation to essential functions.

(b) Rehabilitating and reforming major personnel management systemsand institutions. These will focus mainly on (i) the Office ofthe Head of the Civil Service (OHCS), which is responsible forconditions of employment in the Civil Service, for monitoringstaffing iviels and for providing management services, and (ii)salary policy formulation and payroll administration, in whichOHCS, the Ministry of Mobilization and Productivity and MFEP areinvolved.

(c) Developing a competitive government remuneration system over thelong term. A Salary Rationalization Committee and a NationalIncomes Policy Committee are working to prepare an appropriatecivil service salary policy. A major target is to increasesubstantially the spread of the civil service salary structure,providing large real increases at the higher end of the scale.At the same time the compensation system as a whole (includingnon-salary benefits) is to be reformed to provide equal pay forcomparable work within the public services, and to uetter relatecompensation to merit and performance. The salary policy reformis a sensitive political issue and will take a long time toimplement. However, since the present distortions are so large,the Government can realistically expect to make substantialprogress during the next three years.

(d) Facilitdting the employment of Ghanaian consultants by theGovernment and motivating key civil servants to participate incritical structurol adjustment tasks. The successfulimplementation of the ERP will markedly increase the demand forskilled personnel and know-how by the Government. The salaryreform, even if successfully implemented, will take many yearsbefore competitiveness is restored to the civil service. Toensure that as many as possible of the Government's skillreqiuirements can be filled by Ghanaians, the Government intendsto launch a Skill Mobilization Scheme that: (i) facilitates thecontracting of local consultants by Government agencies for shortand long term assignments; (ii) attracts Ghanaians abroad withhigh qualifications to return by paying a repatriation allowance;and (iii) provides means for Government managers to pay taskspecific supplementary remuneration to those civil servantsengaged in crucial economic recovery work.

Bank Support for Public Sector Management

15. Until March 1983, when lending was resumed after a hiatus of 18months, the Bank Group's assistance to Ghana was project oriented with anemphasis on export promotion and rehabilitation of basic infrastructure.Since 1962, when the Bank Group financed its first operation in Ghana, theBank has made ten loans totalling US$189.7 million and 35 credits totallingUS$673.2 million (including three African Facility Credits for US$62million).

16. The implementation of the ERP since April 1983 resulted in amajor shift in Bank Group strategy, which now has the following majorobjectives:

(a) to assist the Government, supported where appropriate throughtechnical assistance and program lending, to improve incentivesfor production, to increase the efficiency of economic and publicsector management and restore in the medium term a soundfinancial basis for growth;

(b) to promote the long-term growth and devrelopment of the economy byunderpinning structural adjustment lending with infrastructurerehabilitation and sector adjustment operations within aframework of appropriate sectoral policies, the latterencompassing industry, education, and public enterprise;

(c) to improve IDA's knowledge of the country's incentive structure,expenditure policies, and institutional processes so as toimprove IDA's contribution to the further development of theEconomic Recovery Program and so that IDA's recommendations areconsistent with the country's implementation capacity; and

(d) to contribute tu improved aid effectiveness in Ghana by acting asthe focal point for aid coordination between donors and Ghana asthe Government strengthens its own planning and aid coordinationability.

17. The Bank Group is pursuing a two-fold strategy for strengtheningpublic sector management in Ghana. At the macro level, it is focusing onthe core economic and financial management functions and some wider issuesof public sector (especially civil service) management through the proposedinstitutional support project. At the sector level, it is pursuing thestrengthening of sector policy formulation, planning, coordination andmanagement. Both areas of action are being pursued with UNDP, which, in aseries of parallel or co-financed projects, is considering assisting withthe proposed economic management project and is undertaking a series ofsector planning projects, all in close consultation with the Bank.

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18. Reforms of economic institutions and of the civil servicecomplement other related efforts. A Public Enterprise Project beingappraised would assist the Government in carrying out a major reform of thepublic enterprise sector included in the structural adjustment program,reducing its size and introducing major policy and institutional reforms toincrease efficiency. UNDP is executing sectoral planning projects (some ofwhich are components of IDA-funded projects) in the Ministries of Roads andHighways, Agriculture, Health, and Transport, and envisages substantialassistance to MFEP for general planning, some of which may substitute forthat provided under the proposed Credit. Under the Industrial SectorAdjustment Credit (A013-GH and 1672-GH), assistance is available to MFEPfor trade and industry planning, to the banking system for project analysisand financial restructuring, and to the Ministry of Industry, Science andTechnology for trade and exchange rate policy analysis. Finally, theEducation Sector Adjustment Credit is helping to bring about major reformsin the structure and management of the educational system.

III - THE PROJECT

Project Objectives

19. The project would support the Government's public sectormanagement reform as outlined above. It will do so by financing Ghanaianand international expertise, equipment and training to strengthen policyand management capacities of the core agencies in charge of the ERP.Financing would be provided to undertake work of critical importance to theeconomic recovery and structural adjustment programs, as well as generalinstitutional strengthening support. Specifically, project assistancewould be directed to:

(a) strengthening economic policy analysis, formulation andcoordination in the MFEP and the office of the Head of State andGovernment (the "Castle");

(b) improving economic management, especially public investmentprogramming, expenditure control, revenue mobilization, debtmanagement and aid coordination;

(c) increasing civil service Droductivity through retrenchment ofsurplus staff, establishment of a sound wdnagement and personnelsystem in the public service, and an incentive-orie,ited publicservice salary policy;

(d) undertaking studies to help prepare, implement and reviewpolicies; programs and projects tied to the structural adjustmentprocess and providing short and long term advisor- services witha special emphasis on mobilizing skilled Ghanaians to undertakethese tasks, through a Skills Mobilization Scheme; and

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(e) monitoring the impact of economic policies on vulnerablepopulation groups through a living standards measurement survey.

Project Components

A. Economic Policy and Management

20. In January, 1987, the Government announced its decision toreorganize how economic planning and economic management are undertaken.The proposal. calls for the creation of a national planning commission toconcentrate on long-term planning priorities and strategJes within thecontext of decentralization, and a separate Ministry of Planning. TheMinistry of Finance would remain responsible for revenue, the management ofthe budget, debt and external resources. IDA is concerned that Ztheresource allocation function (public investment programming and budget)remain unified. The precise functions of each ministry and a timetable forimplementing these proposals have not yet been defined by the Government.Government has agreed to afford IDA a reasonable opportunity to comment onany major changes proposed in the organization, structure and functions ofMFEP prior to implementation to ensure that the new structure will enhanceand not weaken the Government's efficiency in economic policy management(para 52).

21. Economic Policy Unit (US$1.8 million). The project would supportthe establishment of an Economic Policy Unit (EPU) in the MFEP as thenucleus for rebuilding the Ministry's capacity to analyze policy issues,review economic trends and performance and advise Government on appropriateeconomic policies. EPU would be composed of three advisers--formacroeconomic, monetary and financial, and fiscal policies--one of whomwould be designated lead adviser. They would be supported by an assistantfor economic projections, and a systems manager responsible for developingand integrating MFEP's disparate economic data bases. The advisers wouldreport to the Secretary for Finance and Planning, and provide support andadvice to the heads of the Ministry's five functional divisions. Membersof the Ministry's professional staff would be assigned as counterparts tothe advisers. MFEP is currently attempting to locate suitable candidatesfrom either Ghanaian or international sources. Terms of reference for EPUand job descriptions for the advisors have been finalized. A condition ofeffectiveness would be approval by IDA of the first-year work program(para 51). The project would finance the three advisers and economicprojections assistant for up to three years each (the systems manager wouldbe transferred from within the MFEP), a fund for ad hoc studies, plusoffice equipment and vehicles for the EPU.

22. Economic Liaison Unit (US$ 0.21 million). A small ecoaomicliaison unit (ELU) including three senior officers is being established inthe office of the Prime Minister (the "Chairman of the COS"), and willreport to the Secretary of the Cabinet (the "Member/Secretary, COS"). ELUwill have three major responsibilities: (a) to prepare, circulate and

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maintain agenda and documentation for economic policy decisions by COS andPNDC, and to ensure prompt notification to relevant ministries and agenciesof decisions and implementation responsibilities; (b) to help IERD expediteprocessing of aid agreements by the government agencies concerned, and tospeed up the approval process at the highebt levels of Government; and (c)to advise Government on improvements to procedures for economicdecision-making. The Government's intention is to second officers fromMFEP to staff the unit, if suitabie candidates can be found. Otherwise,other sources would be investigated, with priority given to recruitingqualified Ghanaians. Reporting relationships and terms of reference forthe unit have been agreed. A condition of effectiveness would be approvalby IDA of `^ae first year work program (para 51). The project would financeequipment and supplies to support the work of the ELU, principallymicro-computers (for report production, scheduling, tracking and recordkeeping of economic decisions), and high capacity photocopying equipmentfor document circulation related to COS and PNDC meetings.

23. Public Investment Planning (US$1.01 million). To institutionalizethe work performed by the Public Investment Programming Task force set upin June 1986, the Government intends to rebuild the two divisions of MFEPwhich will progressively assume full responsibility for drawing up arolling three year PIP annually --the Investment and Project AnalysisDivision (IPAD), and the Planning and Research Division (PRD). TheGovernment has proposed a plan to reorganize and strengthen the staffing ofthese two divisions, and to establish broad allocations ofresponsibilities. This plan will be finalized once the restructuring planis announced (para 20). Proposals discussed with MFEP would give IPADprimary responsibility for appraisal of major projects and for reviewingproject proposals and sector investment plans for inclusion in the PIP,while PRD would be responsible for drawing up a balanced overall PIPconsistent with resource availability, macroeconomic objectives andGovernment intersectoral investment priorities. Projects and sectorinvestment plans would be prepared by the responsible sector ministries,where planning units have been or are being set up for that purpose, withIDA and UNDP assistance. Within this framework, MFEP would develop systemsand procedures for the annual preparation of rolling PIP's and provide theconcerned staff with the requisite training. Agreement has been reached onterms of reference to help prepare the 1988-90 public investment program.Precise technical assistance needs will be determined prior toeffectiveness. A condition of effectiveness would be approval by IDA of afirst-year work program (para 51). Consultants financed under the PPF haveassisted in the production of the public investment program for 1986-88.The project would thereafter finance 36 staff-months of international andGhanaian consultants to help carry out the program, under terms ofreference satisfactory to IDA; Ghanaian consultants or seconded staff towork within IPAD and Planning and Research, as an interim measure whilestaff of the two divisions are recruited and trained; essential vehiclesand office equipment; and short-term staff training in Ghana and abroad inproject appraisal and investment programming techniques. UNDP is now

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considering financing part of the consultancy services required under termsof reference satisfactory to IDA. Should UNDP approve this, thecorresponding credit amount would be reallocated to other projectcomponents, as needed.

24. Budgeting and Expenditure Control (USS 0.48 million). The projectwould finance the first phase of a long term effort to revitalize thebudgetary system. This involves the restructuring and strengthening of theBudget Division of MFEP, and the reestablishment of systematic budgetpreparation and monitoring procedures. The IMF has reviewed the budgetingsystem and made proposals for improvement which are now being considered bythe Government. A task force has been working on developing budgetaryexpenditure norms for priority sectors. Proposals for norms have beenprepared for education and will be completed shortly for agriculture andhealth. Agreement has been reached on the consultant requirements for thepreparation of the three-year work program for the Budget Division. Acondition of effectiveness would be approval by IDA of the detailedfirst-year work program (para 51). The PPF has financed an expatriatesenior budget adviser to assist in the preparation of the 1987 budget. Theproject would finance 30 staff-months of local and internationalconsultants to assist in the execution of the work program, training forbudget staff, and the purchase of equipment and vehicles for the BudgetDivision. In addition, terms of reference of the study which will reviewthe operations of the Controller and Accountant-General's Department, andassess the need for reorganization and for strengthening of data-processingoperations, have been finalized and incorporated in the consultancy for theBudget Division.

25. Aid Management (US$0.15 million). MFEP expects to integrate themonitoring of aid disbursements and project performance iato the work ofthe Ministry's International Economic Relations Division (IERD). IERDwould absorb the functions set up by the Central Project Monitorirg Unit(CPMU), which was established as an ad-hoc unit in 1985, and link CPMU'sproject and disbursement monitoring system to its own aid managementinformation system which is currently being developed with UNDP funding. Acondition of effectiveness would be approval by IDA of a first-year workprogram which would include a plan for integrating CPMU within IERD, andwould specify staffing and managerial responsibilities (para 51). Theproject would finance the continued employment of CPMU staff seconded fromnon-governmental Ghanaian institutions for up to three years whileadditional staff would be appointed by IERD to acquire experience alongsidethe existing CPMU personnel. The project would also provide for officerenovation and equipment, training for new staff, and operational travelexpenses.

26. Debt Management (US$0.2 million). To reorganize and strengthenits external debt management, the Government has selected the DebtManagement and Financial Analysis Systems (DMFAS) developed by UNCTAD, andhas for now assigned primary responsibility for debt management to IERD

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within MFEP. A final decision on responsibilities will be taken afterconsidering UNCTAD's recommendations. The project will finance theinstallation of DMFAS over a period of approximately eight months fromFebruary 1987. The DMFAS system, which has been evaluated by IDA and foundsatisfactory, provides a package of training in debt reporting prior toinstallation, installation of a program specifically tailored to Ghana'srequirements, plus associated hardware, and supervised implementation andtraining. As a condition of effectiveness, a detailed action plan toimplement the external debt management sub-component would be submitted toIDA as part of the first year work program (para 51). A Governmentworking group representing IERD, the Bank of Ghana and the Controller andAccountant-General's Department, with assistaiace from UNCTAD, would preparethe plan with financing provided under the PPF. It would pay particularattention to reporting relationships and allocation of responsibilitiesamong the various Government agencies concerned with debt reporting andmanagement. The project would provide for a resident adviser for a furthersix months beyoni installation of DMFAS to ensure full institutionalintegration and additional training, and to advise on linking the debtsystem's output to macroeconomic analysis and to IERD's aid informationsystem.

27. Revenue Mobilization (US$1.2 million). The organization ofgovernment revenue collection has been substantially overhauled within thelast two years. The National Revenue Secretariat (NRS), set up in 1985under a Cabinet-level Secretary, took over the revenue functions (taxationand customs) from MFEP. Under the proposed restructuring plan for MFEP,revenue collection will return to the Ministry of Finance. A Ghanaianconsultancy firm and the IMF have assisted the Secretary in evaluating theorganization and staffing of tax administration. The NRS is currentlystrengthening management, personnel and administrative arrangements toimprove collections and fairness in the tax system, and intends to reformthe taxation system during the structural adjustment period. In thiscontext, the NRS is planning to improve its information base for bothincome tax and customs and excise, and to evaluate and adapt its computerfacilities so as to increase the timeliness and accuracy of assessments andrevenue collections. This would be preceded by an assessment of thetaxation and customs information systems. Terms of reference for theassessment were approved during negotiations. NRS, with assistance fromRevenue Canada, would undertake a computerization study which wouldrecommend a plan for the subsequent upgrading of data-processingcapabilities. The project would finance: 52 staff-months of short-termconsultants for the assessment and for mainframe upgrading andreprogramming; the hardware for mainframe upgrading; microcomputers topermit direct data entry in regional tax offices and major customs posts,and vehicles for transport of data to the central systems; and training inGhana and abroad in systems analysis and programming for selected NRSstaff.

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28. Training for economic institutions (US$0.3 million). MFEP hasdrawn up a preliminary staff development program for economic and financialstaff, to include on-the-job training, local training courses organizedmainly by the Ghana Institute of Management and Public Administration(GIMPA), and Manpower Development and Planning Institute, and a highlyselective program of overseas training. The assistance of the BritishCouncil is being sought to facilitate course identification andadministration for overseas fellowships and the provision of specialistsfor some Ghana-based courses. As a condition of effectiveness, MFEP willassign a professional officer to co-ordinate the training to be carried outunder each economic management component (para 51). In collaboration withthe training officer in the Project Management Unit (PMU), the lIFEP officerwould prepare an annial training plan for these components. Training indebt management, however, would be provided as an integral part of theUNCTAD package. The Ministry will collaborate closely with the trainingofficer in the PMU, and with other economic agencies (eg. NRS, Bank ofGhana) participating in the training program.

B. Public Service Productivity

29. Civil Service Management (US$0.7 million). A sound civil servicemanagement system must be able to monitor public service manpower levelsand deployment, and to advise on civil service policy and/or organizationand management issues within the Civil Service. To help OHCS achieve thiscompetence, an institutional assessment of it would be carried out in late1987 and a medium-term institutional development program drawn up for it.Areas singled out for strengthening are the staff inspection function, torelate staffing levels to functions on an ongoing basis, and personnelmanagement information systems. Particular attention will also be given todovetailing the administration of personnel with that of the payroll, whichis the responsibility of the Accountant-General, so as to reinforceinternal checks on the payroll. ODA(UK) would fund the preparation of theprogram by international consultants in close collaboration with the GIMPA.The terms of reference for these consultants have been reviewed by IDA andagreed with the Government. ODA would select the consultants necessary toimplement the program. IDA would finance complementary requirements suchas equipment and local consultant services. Details for implementing thestrategy for strengthening OHCS, based on the findings of the OHCSinstitutionai assessment would be included in the annual work program(para 51). The terms of reference for the OHCS institutional assessmentand salary policy review have been agreed by Government and ODA.

30. Staffing/Functional Review and Redeployment (US$ 1.3 million).The Government's employment policy in the public sector calls forquantified reductions in public sector employment over the next threeyears. An accurate baseline estimate of the numbers and deployment ofcivil servants, and an indication of under or overstaffing by agency andskill are needed. The project would finance a staffing and functionalreview, modeled after similar exercises recently successfully carried out

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elsewhere in West Africa, notably in the Gambia. OHCS would have leadresponsibility. The study will begin no later than July 1987. While thestudy will not be complete until mid-1988, preliminary indications shouldbe available to provide estimates of overstaffing needed for decisions tobe embodied in the 1988 budget. The study will undertake an agency byagency review of up to ten ministries, two regions, two districts, and twoother departments. The review would include a training and staffdevelopment program for OHCS staff. ODA(UK) would finance about 36staff-months of foreign consultants, and IDA would finance localconsultants and logistical requirements. The terms of reference for thestaffing and functional review have been agreed to by Government and ODA.

31. The Government's redeployment program, described in detail in theStructural Adjustment Program (SAP) President's Report, is a key feature ofthe structural adjustment program.. Under the program, the Government iscommitted to removing from the payroll by May 31, 1987, about 6,700 surplusstaff, and identifying and removing from the payroll by October 31, afurther 8,300. Additional retrenchments are foreseen in following years.The proposed project would support the design of a coherent redeploymentprogram. Funds have been included in the project to finance studies toidentify training needs an' private sector employment opportunities forretrenched workers, and for the design and implementation of trainingprograms for those workers. Government has approached ILO to undertake afirst study of alternative employment opportunities. The SAP Team, incollaboration with the PMU and OHCS, would be responsible for thisredeployment fund. It would submit proposals for the use of funds to IDAfor review and approval as part of the annual work program. IDA would takea lead role in encouraging other donors to co-finance activities in supportof redeployment.

32. Salary Policy (US$ 0.16 million). The project would financesurveys and studies to help formulate salary policy. In particular thesestudies would be useful to guide salary adjustment decisions in forthcomingbudgets. This would involve comparator surveys, financial modeling ofsalary adjustment scenarios, studies on the rationalization of non-wagecompensation benefits, and the design of detailed procedures for ensuringthe smooth implementation of salary adjustments. The first phase of thestudy will aim at establishing 1988 salary differentials for 1988-90 budgetplanning purposes. A working group consisting of OHCS, MFEP and theMinistry of Mobilization and Productivity would be formed to co-ordinatethis study. Assurances have been received that Government would complete asalary policy study by November 30, 1987 (para 52).

C. Structural Adiustment Studies and Advisory Services (US$1.7 million)

33. The successful implementation of the SAP will depend onavailability of financial and human resources, to analyze the problems,recommend corrective actions and implement t'>se recommendations. The

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project would provide US$1.7 million for a studies and advisory servicescomponent to finance consultants to undertake studies and tasks in supportof the ERP. Should additional resources be required, IDA would be prepacedto reallocate funds from other components whenever possible.

34. Studies. Studies already identified include a cocoa incentivesstudy, and development of sector norms for preparation of the recurrentbudget. Other topics needing in depth examination would be identified asERP implementation progresses. Retaests for financing of these studies bythe project could originate either from the concerned Ministry or directlyfrom the Structural Adjustment Program Team (SAP Team), with priority givento studies whose recommendations are most critical to the structuraladjustment process. Studies would be reviewed by the PMU and by the SAPTeam and submitted to IDA for approval. Responsibility for the study wouldrest with the implementing agency: it would write terms of reference,select consultants, negotiate the contracts, and supervise their work.Most studies would require sufficient personnel and logistical support tonecessitate hiring a consulting firm; both Ghanaian and foreign consultingfirms would be encouraged to submit proposals. Ghanaian consultants may behired through the skills mobilization scheme explained in paras 35-36. Inaddition, the project would finance a survey of the local consultingindustry. The study would consist of a description of consultancy firms(number of consultants, fields of expertise, qualifications of staff) andan assessment of their institutional capabilities to undertake consultingassignments in fields related to the ERP. The International LabourOrganization has the necessary expertise and has expressed interest inconducting this survey.

35. Advisory Services. SAP implementation will require severalsmaller studies and consultancies which are also beyond current civilservice manpower resources and capabilities. While salary policy reform iseventually expected to allow the Government to attract and keep the talentit needs, it is clear that, for financial and political reasons, publicsector salaries will not become competitive for many years. To overcomethis manpower constraint, the Government will have to attract qualifiedpeople from outside the civil service and to increase the productivity ofits existing civil servants. The Government has repeatedly stressed itsdes.re to recruit qualified Ghanaians, both within and outside Ghana, toprovide technical assistance in all sectors. Accordingly, as a short-termmeasure, the Government is designing a Skills Mobilization Scheme to helprecruit and keep qualified Ghanaians working in support of the ERP. TheScheme would offer financial incentives for civil servants involved inERP-related tasks, provide for long and short-term consultancies for non-civil servants also working on ERP tasks, and encourage Ghanaians livingabroad to return to Ghana to take up Government posts. If appropriateGhanaians were not available, international consultants would be hired. IDAwould finance two types of advisory arrangements: (i) long-term (one yearor more) advisors (for higher level positions); (ii) short-termconsultancies for studies or other tasks involving a specific output.

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36. User agencies would submit detailed requests for consultants toPMU which would screen them according to eligibility criteria agreed to byIDA. The user agency could identify its own consultant or could requestassistance from the PMU to find a suitable candidate. An administrativeofficer in the PMU responsible for the Scheme would draw up and processstardardized contracts between Government and consultants. These standardcontracts and procedures would be reviewed and approved by the SAP Team andIDA. The PMU would review proposed terms of reference, contractualarrangements and selection of con.;ultants; The SAP Team would have ultimateresponsibility for selection of consultants (para 46). IDA would review theselection of consultants every six months. Payments of long-termconsultants would be conditioned on submission of quarterly evaluationreports by user agencies to the PMU, while short-term consultants would bepaid on the basis of outputs. The SAP Team would review the operation ofthe scheme on a quarterly basis and submit their recommendations forchange to the Government and to IDA. An appropriate fee structure would beestablished so E to attract Ghanaians now working in the domestic privateand/or the parastatal sectors. The structure would be based on, interalia, the length of assignment, levels of qualifications, market rates, andcivil service and parastatal comparators. Separate salary range parameterswould be established for long and short-term assignments. Local short-termrates would average about US$1,000-1,500 per staff-month. Long-termconsultancies will be paid at rates averaging about US$300 per staff-month,approximately the equivalent salary of a high ranking officer in a stateowned enterprise. Civil servants who wish to participate in this programmay do so only by leaving the civil service and thus relinquishingassociated benefits. Ghanaians currently working and residing abroad wouldalso be encouraged to participate in the program. Applicants from overseaswould submit their qualifications to the SAP Team which would haveestablished clear criteria for screening and accepting applications.Returnees would sign a contract to work in a civil service position for aminimum of 3 years and would receive a lump-sum relocation allowance ofapproximately US$15,000. In addition, to help overcome the severe shortageof housing in Accra, the project would finance a limited quantity ofbuilding materials and equipment needed to complete construction ofgovernment housing.

37. Agreement has been reached on types of studies and consultancieseligible for IDA funding under this component. As a condition ofeffectiveness, the Government would approve the Skills Mobilization Scheme(para 51). As conditions of disbursement: (a) IDA and Government wouldagree on the detailed implementation arrangements for the scheme; and (b)Government would furnish IDA with details of the quantities of buildingmaterials and equipment needed to complete housing for returning Ghanaians(para 53).

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D. Poverty Monitoring (USS 1.4 million)

38. To monitor the socio-economic impact of the structural adjustmentpro&ram at the household level, the project will finance the GhanaHousehold Survey Programme. The first phase of the Programme is the GhanaLiving Standards Measurement Survey (GLSS). The GLSS is based on ahousehold survey developed by IDA's Living Standard Measurement Study(LSMS). A similar survey is in its third successful year in neighboringC8te d'Ivoire. Information from GLSS will include data on employment,education and job training, use of health facilities, housing conditions,net and gross household income, food and non-food consumption, agriculturalproduction at the household level, migration, fertility, anthropomorphicmeasurement, lending and savings.

39. Planning for the study, to be undertaken by the Ghana StatisticalService (GSS) began in November 1986, with the survey scheduled to bviginfield operations in July 1987. Preliminary data will be available in late1987 and the first full year of data should be ready by September 1988.The GSS has agreed to provide IDA with unrestricted access to this data.The Government agreed during negotiations that work begun by the LSMS staffwill continue as part of the joint UNDP/World Bank financed projeet,"Assessment of Structural Adjustment in sub-Saharan Africa" (see projectSummary in annex V). The study will be closely supervised by the Bank'sLSMS staff and consultants, until June 30, 1987 at which time the WorldBank Social Dimensions of Adjustment (SDA) Unit, which is in charge ofmanaging the UNDP/World Bank Project, will become responsible forsupervision.

40. The project will finance all costs of the survey; IDA willfinance approximately 10 staff-months of technical assistance and otherforeign exchange costs (vehicles, computer equipment) under PPF fundinguntil June 1987 when the UNDP/World Bank project takes over projectfinancing and implementation. The Government will provide for localcurrency expenditures. A detailed implementation schedule and budget arein the project file.

IV - PROJECT COSTS, FINANCING AND PROCUREMENT

41. Total project costs are estimated at cedis 2,123 million(US$14.16 million) incli.ing taxes and duties of cedis 109 million (US$0.73million). The estimated foreign exchange component is US$8.9 million, or63 percent of total costs. Base cost estimates are in end-1986 prices andconverted into US dollars using an exchange rate of US$1.=cedis 150.Approximately US$750,000 will be used to repay the PPF advance. Physicalcontingencies amounting to 5 percent of total base costs are included.

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Price contingencies have been estimated at 16 percent ox base costs atannual rates as follows:

Assumed inflation rates (percent per annum):

1987 1988 1989 1990 1991 1992 1993

Local 20 15 10 7.5 7.5 7.5 7.5Foreign 3 1 1 1 3.5 3.5 3.5

The disbursement schedule accords with the standard 7-year disbursementprofile for technical assistance projects in the West Africa region.However, if implementation occurs in 3 years as per the initial projectdesign this would result in savings of US$3.3 million, of whichapproximately US$2.5 million under the IDA credit. Savings under the Creditwould be reallocated to project components. A summary of cost estimate3 ispresented in Table 5.1. Details on project costs are given in Annex V.

Table 5.1

Estimated Costs (US$ '000)Z Foreign

Local Foreign Total Exchange

A. Economic Policy and ManagementEconomic Policy Unit 164.8 1,651.2 1,816.0 91Economic Liaison Unit 77.2 137.6 214.8 64Public Investment Planning 318.8 697.2 1,016.0 69Budget and Expenditure Control 37.7 441.9 479.6 92Aid Management 47.2 100.8 148.0 68Debt Management 25.0 169.1 194.0 87Revenue Mobilization 310.2 876.5 1,186.7 74Training 127.8 156.2 284.0 55

B. Public Sector ProductivityCivil Service Management 98.9 622.6 721.5 86Redeploy. & Staffing Review 180.1 1,099.7 1,279.8 86Salary Policy 17.5 125.5 143.0 88

C. SAC Studies & Advisory Services 1,336.5 728.5 2,065.0 35D. Poverty Monitoring 699.4 695.7 1,395.1 50E. Project Management. 204.7 547.2 751.8 73

Baseline Costs 3,645.5 8,049.6 11,695.1 69Contingencies 1,603.0 859.1 2,452.1 -

Total Project Costs 5,248.5 8,908.6 14,157.1 63======= ======= ====s=====a

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Financing Plan

42. The proposed IDA credit of SDR 8.6 million (equivalent to US$10.8million) would finance approximately 80 percent of project costs net ofduties and zaxes; this would cover approximately US$7.8 million of foreigncosts and US$3.0 million of local costs. Costs for 90 percent of advisoryservices and studies, all local training, equipment, vehicles and part ofoperating and maintenance costs would be financed by the Credit. ODA'scontribution of US$1.1 million would finance technical assistance to thecivil service management, staffing and functional review, and salary policyreview sub- components. ODA would also finance most overseas training.The Government would finance all local currency costs of the LivingStandards Measurement Survey through proceeds from the sale of U.S. foodaid. The Government budget contribution of US$2.2 million would financesome incremental salaries and all taxes and import duties. UNDP isconsidering co-financing the economic management component through itsproposed project, Strengthening Macro-economic Institutions. Specifically,it would fund consultants under the PIP and EPU components. Ifco-financing arrangements can be worked out satisfactorily to IDA, Creditfunds would be reallocated to project components as necessary. Theproposed financing plan is summarized in Table 5.2.

Procurement

43. As there are no civil works envisioned under the Credit,procurement would be limited to purchases of goods and consultancyservices. For small consultancy contracts each valued at US$3,000 or less(e.g. for the Skills Mobilization Scheme), IDA would review the first tensuch contracts to ensure that the selection procedure is consistent withIDA guidelines and, if it is found to be acceptable, would then agree tothe SAP Team selecting the remaining consultants without IDA's priorreview. Consultancies valued at more than $3,000 would be subject to normalIDA review procedures as set out in the World Bank's Guidelines for Use ofCornsultants. Equipment and vehicles valued at US$100,000 or more would beprocured through international competitive bidding (ICB) according to WorldBank guidelines. All ICB packages would be subject to prior review by IDA.Items worth US$100,000 or less could be procured through local competitivebidding procedures acceptable to IDA. Minor items costing $10,000 or less(e.g. office supplies) would be purc..ased following local shoppingprocedures by obtaining quotations from at least three suppliers (seeAnnex VI).

Disbursements

44. The proceeds of the Credit would be disbursed against: 100percent of the cost of consultants, local or foreign; 100 percent oftraining costs; 100 percent of foreign expenditures and 80 percent of localexpenditures for equipment, vehicles, office supplies and materials;90 percent of vehicle operating and maintenance expenditures; and 100

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Table 5.2Pro2osed Project FinancinS

(US$ million)

Total Cost IDA ODA GOG I IDAContribution

1.' Advisory Services 6.05 5.4 0.6 - 90(Local) (1.95) (1.9) a/ - _ 100

2. Studies 0.9 0.8 - 0.1 92

3. Training 1.0 0.5 0.5 - 50

4. Office equipment 1.5 1.3 - 0.2 bl 86

5. Vehicles 0.7 0.7 - 100

6. Incremental 1.7 0.4 - 1.4 21Salaries

7. O&M d/ 2.2 1.7 - 0.5 b/ 75

Project Total 14.1 10.8 1.1 2.2 76

a/ Includes US$1.5 million for Skills Mobilization Scheme.

b/ Taxes and Duties.

c/ Includes salaries for the st_sff of the Project Management Unit,annual audits, and round-trip transportation for PMU director toWashington.

d/ Includes operating supplies for computers and spare parts for vehicles.

percent of repayment of the PPF. A Special Account of up to US$700,000would be established in US dollars in a commercial bank on terms andconditions acceptable to IDA. These funds would be maintained by PMU tocover project expenditures and would be replenished by IDA on the basis ofeligible aggregated withdrawal requests; minimum replenishment applicationsize would be US$140,000. Payments against contracts of less thanUS$20,000, training programs and vehicle operating expenses would bedocumented through statements of expenditure with the underlyingdocumentation held available locally for inspection by IDA supervision

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missions. All other expenditures would be fully documented for priorapproval by IDA.

45. Accounts and Audit. The PMU would maintain separate accounts forall expetnditures funded under the Credit. The project accounts would beaudited annually by independent auditors satisfactory to IDA, including anaudit of statements of expenditure. The audit reports, of such scope and insuch detail as IDA shall reasonably request, would be submitted to IDA noless than six months following the end of the Government's fiscal year. ThePMU would submit semi-annual progress reports to the Government and IDA onproject implementation and expenditures, and a final evaluation report onproject implementation experience and project outcome within six months ofthe Credit closing date.

V - PROJECT IMPLEMENTATION

46. Overall guidance to project management would be provided by theStructural Adjustment Program Team (SAP Team). The SAP Team overseespreparation of the Program, monitors and evaluates progress on on-goingreforms as well as their impact on the economy, initiates preparatory stepsfor further adjustment measures, and liaises with IDA for periodic progressreviews. It also provides a channel to the Committee of Secretaries andthe PNDC, the ultimate decision-making body. The SAP Team is headed by theChairman of the Committee of Secretaries. For the proposed project, theSAP Team would (i) determine priorities for project implementation; (ii)give final approval for action plans for each component; (iii) ensure theproper integration of project activities into the Government's institutionsand programs; and (iv) generally monitor project implementation. Inaddition, the SAP Team would review and approve consultants hired under theSkills Mobilization Scheme (para 36), including reviewing all terms ofreference and candidates for short and long term consultancies andapplications from returning Ghanaians, and generally oversee the Scheme.

47. The programs for each project component would be implemented bythe agencies directly concerned (MFEP, NRS, OBCS, GSS, CCOS), while overallproject administration would be done by the Project Management Unit (PMU).The Government has created this unit under direct responsibility of the SAPTeam. The studies and advisory services component would be directlymanaged by the PMU. The implementing agencies will be responsible forformulating and implementing their own activities, subject to review andapproval by the PMU, the SAP Team and IDA. Individual work programs do notdepend on activities by another agency to attain objectives. Eachimplementing agency will name a project facilitator to liaise with the PMU.

48. The PMU, headed by a project director, already appointed, wouldbe responsible for:

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(a) helping implementing agencies in the preparation of annual workplans and budgets; (para 51);

(b) preparation of semi-annual progress monitoring reports;

(c) disbursements and preparation of claims for reimbursements;

(d) assisting in and monitoring of the procurement of goods andservices to be financed under the credit;

(e) implementation of the studies and advisory services component(described in detail in paras 34-36); and

(f) co-ordination of project-related training activities fromparticipating agencies with ODA, local training institutions orother suitable agency.

PMU staff would include the director, officers responsible foradministration, SAP monitoring, and project training, accountants andsupport staff. Given the complexity of management arrangements for theSkills Mobilization Scheme and extensive additional preparatory work tocomplete the work programs, resources have been included to finance supportfrom the local private sector or, failing this, international entities suchas UJNDP's Office of Pr3ject Execution. This technical assistance would notonly help to define work programs and administrative systems, but couldprovide management support to PMU on a permanent basis. If these resourcesare not needed, funds will be used for other project activities. However,if project implementation falls more than 6 months behind schedule,mobilization of these resources would occur.

49. Annual Work Programs and Reporting. The project would beimplemented on the basis of annual work programs prepared by eachimplementing agency, coordinated and reviewed by the PMU, and approved bythe SAP Team and IDA. These programs would serve as a planning,implementation and monitoring tool and would provide the necessaryflexibility to ensure adjustment of project activities to currentcircumstances. Each annual work program would include: (i) an evaluationof the previous year's performance; (ii) a statement of specific quantifiedobjectives to be pursued and a description of the activities to beundertaken to achieve those objectives; (iii) detailed investment andoperating budgets; (iv) staffing and training plans; (v) a financing planwhich indicates the source of funds for each activity; (vi) procurementplans for purchases of goods and services in close collaboration with otherimplementing agencies, and works scheduled in the annual work program,including type of bidding and timetables. The PMU would prepare, for SAPTeam approval, targets and priorities for the studies and advisory servicescomponent (para 33). Draft work pians for the following year would besubmitted to IDA for review and approval by December 1 of each year(para 53). As a condition of effectiveness, the PMU would submit a

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detailed work program satisfactory to IDA for the April 1987 - December1987 period. PMU would prepare semi-annual reports describing progress inachieving work program tArgets. These reports would also includeexpenditure statements for IDA review based on project accounts. Eachparticipating agency would prepare a project completion report; PMU wouldcompile these and submit one project report to IDA no later than 6 monthsafter the Credit closing date.

VI - BENEFITS AND RISKS

50. The project would support a far reaching yet politicallydifficult public sector reform program. In addition to the SAP-relatedbenefits, overall efficiency of the ministries and agencies dealing witheconomic and public sector management would increase. Improved workingconditions, logistical support, higher salaries (from reallocation ofbudgetary savings from retrenchment), and training opportunities wouldpermit the Government to attract and keep more qualified civil servants inthe medium term. There are three risks which the TA project shares withthe SAP: (i) the proposed split of MFEP into two distinct ministries whichmight adversely affect implementation; (ii) dependence on a small numberof Government officials who constitute the core economic team; and (iii)political difficulties in carrying out the civil service redeploymentprogram. On (i), agreement has been reached during negotiations that IDAwill be consulted before any proposed major changes are made (paras 20 and53). The Government's management weakness would be mitigated by thestreamlined project organization that has been established and by providingexternal assistance. To overcome resistance to civil service redeployment,the Government is setting aside budgetary resources to fund the initialretrenchment program and in addition, with IDA support, is exploring othersources of external assistance to help ease retrenched workers' transitioninto other productive employment.

VII - AGREEMENTS

51. Conditions of effectiveness would be:

(a) all conditions precedent to the effectiveness of the StructuralAdjustment Credit agreements have been fulfilled. (para 1);

(b) that MFEP would assign a professional officer to co-ordinate thetraining to be carried out under the economic management sub-components (para 28);

(c) review and approval by IDA of the project's first year workprogram (para 49);

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(d) approval by the Government of the Skills Mobilization Scheme(para 37).

52. Assurances have been received that:

(a) Government would afford IDA a reasonable opportunity to commenton any major changes proposed in the organization, structure andfunctions of MFEP (para 20); and

(b) Government would complete a salary policy study not later thanNovember 30, 1987 (para 32),

53. As conditions of disbursement:

(a) under the Skills Mobilization Scheme of the studies and advisoryservices component until Government has furnished IDA withdetails satisfactory to IDA of the administrative arrangementsrelating to the Scheme (para 37);

(b) for materials and equipment to complete housing required forpersons to be employed under the Skills Mobilization Schemeunless Government has furnished IDA with satisfactory details ofquantities of building materials and equipment needed (para 37);and

(c) under contracts entered into after December 31 of each yearunless IDA shall be satisfied, after an exchange of viewsregarding the annual work program with (i) the progress achievedby the Government in the carrying out of the Project; and (ii)the work program to be carried out under the Project during thefollowing year (para 49).

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QHANA

STRUCTURAL ADJUSTMENT TECNICAL ASSISTANCE PJECT

IMPLEMENTATION SCHEDULE

----------------------------------------------------- __--------------_-------__-------_---------

IComponent I Yest- and QuarterI Activity I 1967 I 1966 1 1989 I1 Tk....Task. 1 1 2 a 41 1 2 8 4 1 1 2 3 41

IA. Economic Policy and Monagment

I 1. Economic policy unitI - establish, equip, recruit .I - operational I .e e oeooeeeoeeeeeo*eoo

2 Economic liaison unit I I I- notsgn etaff nd equlp Io- establish procedures leoeeeee I . I

l - operational I osoeeeoeeooeelesoseeeeoeeleoooooes.eoe s

3. UFEP staff development oeo,oeo;ee eos,eee,eeo1

4. Public investment planning-staffing plans finalizd for PMRD Is ,I . . .

and IPAI - develop public Investment aork jeeoeeeoee..I program, responsibilities,

procedures I * * I I I- mobilize consultants for above 1s., . . I . . . I I- mobili ze onsultants for 06-90 PIP I*o****- implemont PARD, IPA staffing plan j.oi'oeoee.soI*- lmplement PIP work program I eee.eo.Ieesoe.seseseeleoeeoee.eeoel

S . Budgeting and exponditure control- finaliz Budget Divislon .e

restructuring plan I I . * I- implement restructuring and I soe**.

recruit neow staff t I- study of accounting eeeo , I

i - budget system reforms eeeeeeesIeseeseooesessI .I ~~~ ~~I. . . I. . . I ..

S. Revenue mobilization- mobilize computing advisers lee- install micro-computers at ports, I .eooeo. I ,

regional tax offices 0 * : .- assess and decide tax and customs I * I,

i information system chonges I . * .- impilment reforms and mainframe I Iosssosoosooosl.sssosssoeo0oel

upgrading program I . I .I I. .. I.. .1 I . .. . I

7. Aid Management | | | I- minor works * . . . I I- appointment of new CPMU taef by les . I IIERD

- extend and employ seconded I Geosssssss eelesssosssosslesesesssosli personnel for CPMU I II - complete Integration of CPMU Into . I | eseII IERD I . .I .I

l ~~~~~I .. . 1I. .. I . .. I8. Dobt Management | | I

- detailed work program le . . I- phased Instellation of OMFAS I oeBoeoooo , I , * , ,

I - full Implementation with advisory . eeoleI asoisteno IIIasltnce

WAPPS 18-Mar-87

- 26- ANNEX , Paep 2 of 2

GHANA

StRUCTURAL ADJUSTMENT TEtHNICAL ASSISTANCE PROJECT

IMPLEMENTATION SCHEDULE

IComponent Y Year and QuarortActivity I 1987 | 1988 I 1989

I Toake !i 2 8 411 2 3 4 1 1 2 a 41--- - - - - - - - - -- - - - - - - -- -I - - - - - - --- --- I-- -- -- -1B Public Servico Productivity I : : :

1. Staffing and functional roviow *oeoeeooeeeel.- first round redeployment f e.eooeoeooj . .

I - mobilization of conoultanto I uoeee.aooeeeJ I *I I-ntorim report I s

-second round redeployment j o .-final report I e I

l - third round rodeployment . :1::: . .2. Strengthening of civil servico I . . .

I managoemnt l : . I I- mobilization of consultants l esseos I

I - institutional audit of OFCS and 0ooee. I . Il preparation of Institutional I . I .I devolopmont program I . . I

- implementation I .*o,*5****oOI*oeeeeoe0 o 0 Ioeeooeo*5I3. Salary Pollcy Formulation I l . I

a- greement on studico and surveys ie . . .In- nterim report 000I0*. . . .

j -tfinal report 0.o .**o | |

4. Skills mobilIzation schces. I - expansion A consolidation of joooe IISSER roster; outreach program I I I |

i - establishment of ?ules, jeoceoo 1 I Iguidelines for seloction,contracting of consultants Ioversight I . I .

I - selection, recruitment, I oeoeee I ooeeoeeeaeeeeooeeeoI deployment of consultants I . I .I - mid-term, final reviows e

S . Training plan I | | .l - preparation ofTOR R e I I . .I - Identification of consultants I e . . .

- lmplementation I .o00.- dissemination A follow-up . e I I

1~~~~~~~ . * . * * I . * IC. Poverty Monitoring I 1I---------------------_ . . . I , . . I . . . I

I - planning, pr.teeting, analys;s of fl.o.eo*eooe. I . *2oeseoou . .I questionnaire l lI - training of sonior staff, loo0os lI supervisors and intorviewers I . I .I - ourvey I leoseejoeees'seo.2eojeoooe.I - data analysis I lceoeo I .2eoee.

WAPPS 10-Uoa-87

-27 - ANNEX II

Page 1 of 2

Proposed First Year Work Programs

The project would be implemented on the basis of annual work programsprepared by each implementing agency, coordinated and reviewed by PMU, andapproved by the SAP Team and IDA. Each annual work program would include(i) an evaluation of the previous year's performance; (ii) a statement ofspecific quantified objectives to be pursued and a description of theactivities to be undertaken to achieve those objectives; (iii) detailedinvestment and operating budgets; (iv) staffing and training plans; (v) afinancing plan which indicates the source of funds for each activity; (vi)procurement plans for purchases of goods and services in closecollaboration with other implementing agencies, and works scheduled in theannual work program, including type of bidding and timetables.

In order for the project to become effective, each project component mustcomplete a first year work program. During the first supervision mission,agreement will be reached on what realistically can be achieved during theproject's first year. At a minimum, the work programs should include thefollowing:

1. Economic Policy Unit. Detailed terms of reference for the threeadvisors, clearly defined reporting relationships between the Unit andMFEP, and a discussion of how the Unit will become operational.

2. Economic Liaison UJnit. Clearly defined working relationshipsbetween the Unit and the Secretary of the Cabinet (already agreed), jobdescriptions for three liaison officers and a timetable foroperationalizing the Unit.

3. Public Investment Planning. Completion of a plan to reorganizeand strengthen the staffing of the IPAD and PRD Divisions of MFEP(including a training plan), and work begun on the preparation of the1987-89 PIP. 1

4. Budgeting and Expenditure Control. A plan to complete thethree-year strategy and first-year program for the Budget Division,including a training plan for the Division.

5. Aid and Debt Management. A plan to integrate CPMU within IERD,specifying staff4ng and managerial responsibilities. A detailed plan toimplement the external debt management system (DMFAS) developed withassistance from UNCTAD, including training needs.

6. Revenue Mobilization. A timetable for completion of a detailedwork program which would include upgrading of data-processing capabilities,training needs, and a plan for implementing the recommendations made in theforthcoming assessment of the taxation and customs information systems.

- 28 - ANNEX IIPage 2 of 2

7. Training. A plan detailing how the MFEP training coordinatorwill work with each MFBP Division, the NRS, and the PMU training officer toformulate a training plan for the project period. The first-year planshould also address how MFEP will work with the British Council to selectpotential trainees.

8. Civil Service Productivity. A discussion of how OHCS willundertake the institutional assessment. A plan to complete the staffingand functional reviews, including a description of how the reviews'recommendations will be implemented. On redeployment, the first-year planshot.ld simply address how the Government expects to work with variousdonors to formulate a redeployment support program.

9. On salary policy, a timetable to complete the study and implementits recommendations.

10. Studies and Advisory Services. An outline of studies to befinanced during the first year; a plan to complete implementationarrangements for the the Skills Mobilization Scheme, including a draftstandard contract and a list of proposed consultancies for the first year.

11. Poverty Monitoring. Updating of work program and timetableformulated under PPF financing.

- 29 -

GHBAP ANNEX IIIOWm STRUCTURAL ASSISTANCE INSTITUtItL SPT POECT Table 1

PROECT COST SIA

(CEDIS B4illion) (US '000) 8 Total? Fo-rign In

Local Fovi*n Total Local Foreign Total Excam Cosszv= wouunfl uueauua =~mums uvxanua zzuguuua 64=8suuuu

A. ECOWONIC POLICY AND P

ECWIIC POLICY UNIT 24.7 247.7 272.4 164.8 1#651.2 1,916,0 91 16ECOUIC LIAISON UNIT 11* 20. 32.2 77.2 137.6 214,8 64 2PWLIC IlE STl£ J PlMWINB 47.8 104,6 152.4 318.8 697.2 1t016.0 0 9mmWEl 8 EI DITtkE mONTROL 5.7 66.3 71.9 37.7 441.9 479n6 92 4AID PtM3ZM 7.1 15.1 22.2 47,2 100.8 1480 68 1MYBT MNNE3 3.7 25.4 29.1 25.0 169.1 1"4.0 87 2REWUE NOBILIZATION 46.5 131.5 178.0 310.2 876,5 1W186W7 74 10TRAINING 19.2 23.4 42.6 127.8 156.2 294.0 55 2

Sub-total ECONOMIC POLICY AND 5iflET 166.3 634.6 800W8 1,108#5 4.230,4 5339.0 79 46D. PIULIC SECTOR PRODUCTIVITY

CIVIL SERVICE N3lE 14.8 93,4 108.2 9.9 622.6 721 5 86 6REPLOY.J STAFFING REVi 27.0 165.0 192,0 180.1 1099.7 1.279.8 86 11SALARY POLICY 2.6 18.8 21.5 17.5 125.5 143,0 Be I

Sub-Total PUBLIC SECTOR PRODUCTIVITY 44.5 277.2 321.6 296.5 1,847.8 2.144.3 86 18Co SAC STUDIES I ADVISORY SERVICES 200.5 109,3 309.8 1.336,5 728.5 24OA5,0 35 18D. POVERTY NOMITORING 104.9 104.4 209,3 699.4 695.7 1M395.1 50 12E. PROJECT IUNMSERENT 30.7 82.1 112,8 204.7 547.2 751.8 73 6

Thtat DASELINE COSTS 546.8 1.207.4 1,754,3 3,645.5 8.049,6 11.695.1 69 100Phwsical Contingencies 19.9 64,5 84.4 132.7 430.0 562.6 76 5Price Contindmnies 220.5 64.4 284.9 1,470.3 429.1 1,899.4 23 16

Total PROJECT COSTS 787,3 1,336.3 2t123.6 5,248.5 8,908.6 14lS5791 63 121Nardi 1 19= 7a 1z5

March II# 1987 18t#35

- 30 -

GHANA ANNEX IIIGH4NA STRUCTURAL ASSISTACE INSTITUTIONKL SUlPPlT PROJECT Table 2

Project Coopnnts bs Year

Totals Includina Contingencies Totals Including Contingencies(CEDIS Million) (US0 '000)

_ ** . _ - ------------------------- - - --- - -- -- -- - -- - - -- - -- - - -- -

1997 1988 M 1990 1992 1993 Total 1987 1988 1989 1990 I991 19 1993 Total

A. ECONOMIC POLICY AND MANWGEMENT

ECONOMIC POLICY UNIT 26.1 87,0 87.2 86.3 13.1 4.8 2.4 306.9 174,1 580,0 581.7 575.2 87.1 32.1 15.9 2.046.,ECMOIOtC LIAISON UNIT - 15.3 5,1 5.4 5.4 5.7 3.2 40.1 - 101.9 34.0 35.7 36.1 38.1 21.3 267,1PtIJC INVESTNENT PLANNING 8.0 39.1 46.5 48.5 19.4 20.6 7,1 189.2 53.3 260.7 310.2 323.2 129.3 137.3 47.2 1,261.1NUDGET b EXPENDITURE CONTROL - 15.1 26.5 20,6 14.8 2.3 2.4 81.9 - 100.7 176.7 137.3 98.9 15.5 16.0 545,1AID NAEMNT 1.7 8.2 10.8 3.0 1.8 - - 25,e 11.6 54.3 72.2 20,3 11.9 - - 170,3DEBT NAMNT - 5.7 9,0 7.7 7,0 2.0 1.9 33.3 - 37.9 59.7 51.2 46.9 13.6 12.7 222.0REVENUE MODILIZATION - 37.0 44.6 67.5 30.3 23.0 12,9 215.2 - 246.8 297,1 450.1 201.9 153.2 85.9 10434.9TRAININS 0.3 7.8 8.3 219 10.0 6.5 - 54.6 2.1 51.7 55.2 145.7 66.4 43.0 - 364.2

Sub-Total ECO#OMIC POLICY AND IMANAEMENT 36,2 215.1 238,0 260.8 101,8 64.9 29.8 946.6 241.2 1.434.1 1,5867 10738.6 678.5 432.8 199.0 64310.9S. PU8tIC SECTOR PRODUCTIVITY

CIVIL SERVICE MANAGEMINT 5.4 28.6 32.1 25.9 16.2 8.7 7,1 123.S 36.0 190.6 213,8 172.8 107.7 58. 47.3 826.3REDXPLOY,I STAFFIrG REVIEW 14.0 61.0 44.3 47.3 34.8 9.0 7.4 217.8 93.3 406.8 295.6 315,0 231.7 59.7 49.6 1.451.7SALARY POLICY 2.3 8.6 7.1 1.5 1.5 1.6 1.6 24.3 15.5 57.3 47.6 9.9 10.1 10.4 10.8 161.7

b-Total PUBLIC SECTOR PRODUCIVITY 21.7 98.2 83.6 74.6 52.4 19.2 16.2 346.0 144.8 654.7 557?0 497.7 349.5 128.2 107.8 2U439.7C. SAC STUDIES t ADVISORY SERVICES 36.1 9S.5 115.0 98.2 70.8 - - 419.6 240,9 663.4 766.7 654.5 471.7 - - 2797.2D. POVTY ONITORING 91.0 45.9 111,7 8.2 - - - 256.8 606.9 306.0 744.9 54.5 - - - 19712.3E. PROJECT MANAGEET 14,6 24.7 30.4 25.4 17.1 16.1 6.4 134.6 97.1 164.6 202,5 169.0 113.8 107.4 42.7 897.0

Total PROECT COSTS 199.6 483.4 578.7 467U1 242.0 100.2 52.4 2,123.6 1,330.8 3 .222.9 3,857.9 3,114.3 1,613.6 668.3 349.4 14,157.1~ 3 t28 _u unUg3 zuggu2 u3 3J*S:G :::# :::8 :g:* ::1$ 11:3g :uu 5ug = ::g:u::::

…-larb - -1 -18:35----------------…------- ----March Ili 1987 18:35

- 31 -

GHANA ANNEX IllGHANA STRUCTURAL ASSISTANCE INSTITUTIONAL SUPPORT PROJECT Table 3

Suaaars Accounts by Year

Totals Including Contingencies Totals Including Contingties(CEDIS Million) (USt '000)

198? 1988 1989 1990 1991 1992 1993 Total 1997 1989 1989 1990 1991 1992 193 lotal:::2=3::: ===== czz_:= =Cast Vs2=r. Uzas ==s ======= Z==:=S= :.===:.- VzOncre zsa===- 2==-s:== z==CZ=__s

1. INVESTMENT COSTS

At ADVISORY SERVICES

1. LOCAL 17.9 65.8 78.0 7n.9 52,0 - - 292.7 119.7 438.6 520*0 526.2 346.7 - - 1.951,i2. OVERSEAS 64,2 175,4 181,1 167.7 26.9 - - 615.3 428,1 1,169.4 19207,4 1,117.8 179,6 - - 4102#2

Sub-Total ADVISORY SERVICES 82.2 241.2 259.1 246.6 78.9 - - 908.0 547.7 1,608.0 1,727.4 1,L44.0 526.2 - 69053.3S. STUDIES 12.0 41.0 33.1 29.2 25.5 - - 140.8 80.0 273.1 220,6 194.7 170.1 - - 938,5C. TRAINING 1.9 23.7 33.4 45.1 32.3 12.3 3.9 152.6 12.4 158.1 222.5 300.7 215.3 82.0 26,3 1,017,4D. OFFICE EQUIPMENT 26.2 62.7 61,8 51,9 21,9 1.8 - 226.3 174.4 418.2 411.7 346.0 146.3 11.7 - 10508,3E. HEHICLES 34.9 34.0 20.5 14.3 - - - 103.7 232.8 226,7 136.5 95.4 - - - 691.4

Total IKIESTNENT COSTS 157,1 402.6 407.8 387.1 158.7 14.1 3.9 1.531,3 1047.4 2,684#0 20718.7 2,580.8 1,057.9 93.8 26,3 10,209.0

It. RECRRENT COSTS

A. IKICREREIWAI SALARIES 18,6 19,5 122.3 31.8 32.8 35.2 0.3 260.6 124,2 130.1 815.6 212,1 218.5 234.7 2.0 10737.29. YEHICLE/EOT

OPERATIOWiMAINTENANCE 23.9 61.3 48.5 49.2 50.6 51.0 48.2 331,6 159,2 408.8 323.6 321,3 337.2 339.8 321.1 2,211,0

Total RECURRENT COSTS 42.5 80.8 170.9 80,0 83,4 86.2 48,5 592.2 283.4 538.91.139.1 533.5 555.7 574.5 323.1 3*948.2__:. S= Za: = :::S==--: ZC MCC=3= :=__'S=== =Z S:5 aZz::: :==z=: zz=:==:: :=:::_= ::::: :::::u :3:

lotal PROJECT COSTS 199.6 48