The World Bank Board Tuesday announced its approv al of a US$ 190 million regional operation to finance transport and transit impr o vements in Burkina Faso, Ghana and Mali.
According to the Bank, the three-country project supports the New Partnership fo r Africa’s Development (NEPAD) transport agenda of trade corridors without borde r s and barriers, which aims to facilitate trade and promote economic integration i n the sub-region.
The financing package consists of three International Development Association (I DA) credits of US$ 70 million to Burkina Faso, US$ 80 million to Ghana and a US$ 4 0 million to Mali for a West Africa Transport and Transit Facilitation project.
In addition, the project supports the objectives of the first phase of the Progr amme d’Actions Communautaire des Infrastructures et du Transport (PACITR) (Commu n ity Action Plan for Road Infrastructure and Transport) West Africa Economic and M onetary Union (WAEMU).
PACITR’s road programme is part of a multi-donor effort in the West Africa sub-r egion to improve transport infrastructure and facilitate trade, transport and tr a nsit, funded by the African Development Bank, the European Union and the Banque O uest Africaine de Développement (West African Development Bank), as well as the t hree governments.
The transport sector plays a key role in the economic development of the sub-reg ion and generates about 6 percent of its Gross Domestic Project (GDP).
Transport and transit costs for landlocked countries such as Mali, Burkina Faso and Niger are up to 50 per cent higher than for countries with direct access to t he sea.
“These high transport and transit costs translate into high prices of goods for consumers and loss of external competitiveness,” the World Bank said.
The project is expected to improve access by Burkina Faso and Mali to Ghanaian p orts, as well as improve port operations and to facilitate the movement of traff i c along the Tema-Ouagadougou-Bamako road transport corridor.
“This project recognises the need for regional approaches in a part of Africa wh ere landlocked economies are disadvantaged by costly and unreliable transport, t r ansit and trade processes,” said Fabio Galli, the World Bank Task Team Leader of
the project.
“As a result, we should see more reliable services, lower general transport cost s and better road infrastructure sections along the corridor to better integrate
Burkina Faso and Mali to the ports of Ghana and an improved inter state road mov e ment of goods along the corridor.”
