This program trained contractors in labor-based methods in the local road contracting industry in Ghana in order to produce gravel roads of equal quality to equipment-based methods, and generate rural employment in a cost-effective manner. The program was initiated as a component of the World Bank's Fourth Highway Project and funded by International Development Association (IDA). Lessons learned: although labor-based methods offer the benefits of employment generation without sacrificing on cost and quality, programs must be designed carefully so that contractors find these methods attractive to use. When appraising a program, program designers should: assess the second-hand equipment stock and the competitiveness of sector; target small-scale contractors; ensure timely payments to contractors; and equip contractors with care.