PD-694-13-R2-M-Ghana - Englishassume an active role in teak cultivation or provides a forestry...

INTERNATIONAL TROPICAL TIMBER ORGANIZATION

ITTO

PROJECT PROPOSAL

TITLE: PROMOTING DEVELOPMENT OF TEAK PLANTATIONS ON FARMLANDS TO IMPROVE QUALITY, MARKETING AND LIVELIHOOD OF LOCAL COMMUNITIES IN FOREST-SAVANNAH TRANSITION ZONE, GHANA

SERIAL NUMBER: PD 694/13 Rev.2 (M)

COMMITTEE: ECONOMICS, STATISTICS AND MARKETS

SUBMITTED BY: GOVERNMENT OF GHANA

ORIGINAL LANGUAGE: ENGLISH

SUMMARY: The issue of deforestation and forest degradation (DFD) is a source of worry in Ghana. It has become a global concern. The rate of DFD in Ghana has been very rapid, and occurs not only in the forest reserves but also in farmlands/agricultural lands. The rapid DFD of farmlands is largely caused by the challenges farmers faced in growing and retaining trees on farmlands. This project is proposed to address the concerns of the smallholder farmers growing teak on their farmlands. The purpose is to improve the economic outcomes and livelihood for these smallholders. The development objective is to promote sustainable, profitable, quality teak plantation development on farmlands thereby curtailing deforestation and degradation of farmlands/agricultural lands, expanding timber resource base and improving livelihood. The specific objectives are 1) to increase the economic returns to smallholder teak farmers from development of forest plantations on farmlands; and 2) to increase the timber and carbon value through increase in contribution of small holder teak plantations to timber resource base and carbon sequestration/storage. Major outcomes of this project are improved management of the teak plantations; higher quality of the teak produced; better prices for the teak sold; and higher incomes to the communities. The others are farmers’ knowledge on Ghana’s forest policies on farm forest plantation development and marketing increased and ways through which smallholder farm forest plantation activities could be in-cooperated into the climate change policy processes determined. This will enable farmers benefit from international carbon funds in future in order to maintain and expand their teak stands while waiting for the timber revenue at the final harvest. This project will be implemented by the Forestry Research Institute of Ghana, the School of Forest Sciences of the University of Eastern Finland (UEF), Forest Services Division of the Forestry Commission of Ghana and the local communities in six project sites in the forest savannah transition zone in Ghana. IMPLEMENTING AGENCY: FORIG

DURATION: 36 MONTHS

BUDGET AND PROPOSED SOURCES OF FINANCING:

SOURCE

CONTRIBUTION IN US$

ITTO 567,022

Govt. of Ghana 80,950

TOTAL 647,972

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Table of Contents TABLE OF CONTENTS ............................................................................................................................ 1

PROJECT BRIEF ...................................................................................................................................... 2

LIST OF ABBREVIATIONS AND ACRONYMS ........................................................................................ 5

MAP OF PROJECT AREA ........................................................................................................................ 6

PROJECT CONTEXT ................................................................................................................................ 7 1.1 ORIGIN ......................................................................................................................................... 7 1.2 RELEVANCE .................................................................................................................................. 8

1.2.1 Conformity with ITTO’s objectives and priorities ......................................................................... 8 1.2.2 Relevance to the submitting country’s policies ........................................................................... 8

1.3 TARGET AREA .............................................................................................................................10 1.3.1 Geographic location ...................................................................................................................10 1.3.2 Social aspects ...........................................................................................................................11 1.3.3 Cultural aspects .........................................................................................................................11 1.3.4 Economic aspects .....................................................................................................................11 1.3.5 Environmental aspects ..............................................................................................................12

1.4 EXPECTED OUTCOMES AT PROJECT COMPLETION ...........................................................................13

PART 2. PROJECT RATIONALE AND OBJECTIVES ........................................................................... 14 2.1 RATIONALE ..................................................................................................................................14

2.1.1 Institutional set-up and organizational issues ............................................................................14 2.1.2 Stakeholder analysis..................................................................................................................15 2.1.3 Problem analysis .......................................................................................................................16 2.1.4 Logical framework worksheets ...................................................................................................19

2.2 OBJECTIVES ................................................................................................................................24 2.2.1 Development objective and impact indicators ............................................................................24 2.2.2 Specific objective and outcome indicators .................................................................................25

PART 3. DESCRIPTION OF PROJECT INTERVENTIONS .................................................................... 26 3.1 OUTPUTS AND ACTIVITIES .............................................................................................................26

3.1.1 Outputs ......................................................................................................................................26 3.1.2 Activities ....................................................................................................................................26

3.2 IMPLEMENTATION APPROACHES AND METHODS ...............................................................................27 3.3 WORK PLAN .................................................................................................................................29 3.4 BUDGET ......................................................................................................................................31

3.4.1 Consolidated budget by component (in USA dollars) .................................................................31 3.4.2 Yearly Project Budget by Source-ITTO (in US Dollars) ..............................................................35 3.4.4. Activity and Component (in US Dollars) .....................................................................................37

3.5 ASSUMPTIONS, RISKS, SUSTAINABILITY ..........................................................................................61 3.5.1 Assumptions and risks ...............................................................................................................61 3.5.2 Sustainability .............................................................................................................................61

PART 4. IMPLEMENTATION ARRANGEMENTS .................................................................................. 62 4.1 ORGANIZATION STRUCTURE AND STAKEHOLDER INVOLVEMENT MECHANISMS ....................................62

4.1.1. Executing agency and partners .................................................................................................62 4.1.2. Project management team .........................................................................................................62 4.1.3. Project steering committee ........................................................................................................63 4.1.4. Stakeholder involvement mechanisms.......................................................................................63

4.2 REPORTING, REVIEW, MONITORING AND EVALUATION ......................................................................63 4.3 DISSEMINATION AND MAINSTREAMING OF PROJECT LEARNING ..........................................................64

4.3.1. Dissemination of project results .................................................................................................64 4.3.2. Mainstreaming project learning ..................................................................................................64

ANNEX 1. PROFILES OF THE EXECUTING AND COLLABORATING AGENCIES .............................. 65

ANNEX 2. RECOMMENDATION OF ITTO 46TH EXPERT PANEL .......................................................... 68

ANNEX 3. TASKS AND RESPONSIBILITIES OF KEY EXPERTS PROVIDED BY THE EXECUTING AGENCY ........................................................................................................ 70

REFERENCE ........................................................................................................................................... 72

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PROJECT BRIEF The issue of deforestation and forest degradation (DFD) is not only a source of worry in Ghana; it has become a global concern. Lately, it has again attracted international attention, largely due to its contribution to the global warming and climate change. In an effort to address these problems, attention is drawn to reduction of DFD in the developing countries. The importance for this option is the cost effective nature of using DFD reduction to address these problems. In Ghana, the rate of deforestation and forest degradation (DFD) has been very rapid and it makes it difficult for the forest area to be known (Hansen et al, 2009). While Ghana’s forest sector contributes approximately 6%, per year to its GDP, economic cost of deforestation and forest degradation reduces this contribution by 4% per year. It is estimated that approximately 63% of the estimated cost of environmental degradation in Ghana is due to the rapid rate of forest depletion both in and outside the forest reserves. Outside the forest reserves within the high Forest Zone (HFZ), cocoa farms, food crop farms, and fallow lands are the dominant land use types. Trees in these off-reserves have been used in Ghana’s farming system for maintaining soil productivity and obtaining favourable effects on crops (Amanor, 1996). However, the increasing demand for fuel wood, fodder and timber has greatly affected the practice of leaving trees on farms resulting in deforestation of these farmlands. Also traditional fallow periods have reduced drastically leading to land degradation and lower agricultural yields. The deforestation and degradation of farmlands outside the government forest reserves has become a growing concern. It is probably to address this concern that agricultural lands/farmlands have been included in the National Forest Plantation Development Programme (NFPDP) previously largely implemented within degraded forest reserves (FC, 2010). With an estimated deforestation rate of 65 0000 hectares per year in the whole country and 22000 hectares per year in the high forest zone (Abeberese, 2002), Ghana is expected to be without a forest cover within the not-too-distant future, unless effective measures are taken to reverse the trend. This scenario has made the need to intervene and halt the fast depletion of the country’s forest both in and outside forest reserves more than necessary. This is more so because of the significant export earnings that accrues to the country from its forestry and wood processing sector and the global warming effect To address this problem of rapid depletion of the forest resources, Ghana is making efforts and putting measures in place but with much difficulty. These measures include policy reform, strengthening of forest law enforcements, and replanting of degraded forest reserves and conscious introduction of agro forestry into traditional farming systems on agricultural lands outside forest reserves. In addition, Ghana has promoted various programs to address the diminishing natural forest resources by forest plantation development. Different types of models have been used in the plantation development in Ghana. These include individuals at their own expense, or sponsored by central government, the private sector, or non-governmental organizations. Currently the plantations Department (PD) of the Forest Services Division (FSD) of the Forestry Commission (FC) leads the forestry plantation development in the country under the National Forest Plantation Development Project (NFPDP) that began in 2001. The components of NFPDP include the Modified Taungya System (MTS) (establishment of plantations by FSD in partnership with local farmers), Government Forest Plantation Development Programme (HIPC)(hired labour and contract supervisors to establish industrial plantations) and the Private Plantation Development(release of degraded forest reserve lands by FC to private forest plantation developers). Among all these models in Ghana, the small-holder individual and community plantations are the most widely used (Nanang, 2012). These small-holder plantations in Ghana are made up of tree planting on individual household farm lands. However, smallholder forest plantations are often constraint by land tenure issues, limiting their sizes, although they are the ones that bring significant benefit to local communities compared to the other plantation models. Nsiah, (2010) study in the Offinso district underscored the potential contribution of smallholder farm forest plantation to increase overall household’s income and improvement in household’s well-being. In addition, the portion of lands in Ghana that are farmlands is larger than the forest reserves. Therefore degradation of these farmlands has significant negative consequences in Ghana. For instance, while Ghana’s forest zone covers 5 regions covering 84,000km squared; the forest reserves cover approximately 32,000km squared and the rest is occupied by farmlands and bush-fallow lands. In most of these smallholder forest plantations, the dominant tree species in terms of hectares is teak (Tectona grandis) (FAO, 2002). This is despite the fact that the forestry department in Ghana does not assume an active role in teak cultivation or provides a forestry extension service to smallholders who have embarked on teak cultivation on their farmlands (Kollert and Cherebini, 2012). The high preference for the teak species for the plantation establishment compared to the other species is largely due to its resistance to wildfire effect that is rampant, particularly in forest savanna transition zone of Ghana; and the increasing international demand for it (Sools and Wanders, 2011). Despite these benefits for this species, smallholder

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individuals that grow it on their farmlands do not derive much of these benefits due to a number of problems they face in production and marketing. At the production stage involving the plantation establishment and management by these smallholder farmers, poor silvicultural practices are used. The use of these poor silvicultural practices lead to low quality timber, which is difficult for these smallholders to improve upon because of lack of capital to invest in teak planting and limited ability to wait for the completion of a teak rotation before requiring returns (Boateng, 2008). With limited access to capital/credit for investing in teak planting and the financial inability to wait for trees to reach the minimum diameters required by the timber industry, smallholders find it difficult to compete with government and private plantation companies, such as the FORM Ghana among others in Ghana (Sools and Wanders, 2011; Kollert and Cherebini, 2012). Another difficulty these individual teak growers face is that they tend to sell their teak trees to timber contractors at prices that are often well below market rates because of their limited access to markets, limited market information including both timber and international carbon markets, and inability to overcome transaction costs. These small-scale farmers often sell their teak trees to middlemen in the absence of sufficient marketing information about current prices and practices, and they are often not in a position to negotiate higher prices (Ball et al. 1999). Given that these teak plantations are often small holdings in nature and widely scattered apart, the transaction cost for the timber contractors that purchase such trees is high, and this contributes to the lower prices for the producers. Furthermore, some government policies are not favourable to these small-scale teak farmers because most of the regulations in terms of harvesting and transportation permits, registration procedures among others are made for large-scale timber production (Insaidoo et al. 2012). In summary, the challenges to profitable smallholder teak planting in Ghana include: - Low quality due to poor silvicultural practices (Djagbelety and Adu-Bredu, 2007) - Lack of capital to invest in teak plantation establishment and to protect against wildfire (Boateng, 2008;

Ball et al. 1999) - Inability to wait for the completion of a teak rotation before obtaining returns - Limited access to market information/linkages leading to prices that are well below market rates with high

transaction costs for timber contractors - Unfavourable forest policies. The development objective of this project is to promote sustainable, profitable, quality teak plantation development on farmlands thereby curtailing deforestation, expanding timber resource base and improving livelihood. The specific objectives are 1) to increase the economic returns to smallholder teak farmers from development of forest plantations on farmlands and 2) to increase the timber and carbon value through increase in contribution of small holder teak plantations timber resource base and carbon sequestration/storage.. The achievement of the objectives would be measured by i) increase in productivity and quality of teak grown on farmlands ii) sale of on-farm teak trees at higher market prices, iii) increase in returns to large number of smallholder farmers growing teak on their farmlands, iv) improvement in livelihood of teak growing farmers, v) Increase farm forest plantations, vi) reduced pressure on natural forest and increase in timber resource The beneficiaries of this project are first the smallholder farmers engaged in farm forest plantation development and the local communities in general. The next immediate beneficiaries are the Forestry Commission of Ghana and its organs, the related forestry ministries i.e. Ministry of Lands and Forestry (MLF), Ministry of Science and Environment, Ministry of Food and Agriculture. The other beneficiaries are other ITTO member countries both producing and consuming countries. The expected outcomes of this project are; i) improved management of the teak plantations; ii) higher quality of the teak produced; iii) better prices for the teak sold; and iv) higher incomes to the communities. The others are farmers’ knowledge on Ghana’s forest policies on farm forest plantation development and marketing increased and ways through which smallholder farm forest plantation activities could be in-cooperated into the climate change policy processes determined. The main outputs are i) Introduction and adaptation of silvicultural technologies that improve returns to smallholder teak farmers ii) Farmers’ Demonstration trials (FDTs) of teak stands established, iii) Financing schemes providing incentives for smallholder participation in profitable teak production identified; iv) Market access for smallholder teak producers enhanced This project will be implemented through action research approach. This will combine analytical approaches with active participation of the targeted stakeholders, in particular the smallholder teak growers at the project sites. Various activities will be carried out and are categorized into four groups; Farmer and stakeholder mobilisation and sensitization, methodological design, data collection, analysis and education, training and capacity building activities and dissemination of project findings through effective communication and

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knowledge management. To begin with the farmer and stakeholder mobilization, teak farmers and their farm forest plantation will first be identified. This will be followed with a start-up workshop, where participation stakeholders’ roles and responsibilities to ensure successful implementation of the project would be outlined. The importance of the project will be explained to these stakeholders including what they stand to gain from its successful implementation. This will enable stakeholders to buy into the project. To ensure sustainability of smallholder teak plantation development, stakeholders especially farmers engaged in it would be the main focus. They would be empowered and equipped with the needed knowledge and business skills to sustain their farm forest business independently. They will be encouraged to form networks among themselves and the other users along the value chain. The district assembly, which is the local government authority and the district forestry would be encouraged and adequately informed about these smallholder teak farm plantation so that they can buy into it, and in turn offer the necessary advice and assistance to these farmers. Currently the desire to achieve environmental stability and sustainable provision of environmental services are of prime essence to Ghana, this project would attract the support of the government and all the local communities. Although forestry projects have a long gestation period it is hoped that the project objectives will be achieved within the project’s duration. So that, lessons learnt will serve as significant inputs in the overall improvement of Ghana’s forest management, poverty reduction strategies and the global climate change mitigation efforts. The study area will serve as centre for knowledge transfer from participating communities to non-participating ones The main assumptions are i) smallholder teak stands on farmlands are available, ii) smallholder teak farmers are available and are willing to be assisted to improve their economic outcomes from these farm forest plantations, iii) The forestry department staff are willing to cooperate in the project implementation, iv) scientists and all other project staff are knowledgeable and committed to carry out the project activities. Thus major stakeholders in this regards are the small holder teak farmers in the local communities and the officials of Forest Services Division who are currently responsible for forest resources in Ghana. The likely risks for this project may involve i) lack of co-operation on the part of the forestry administrators ii) lack of interest on the part of the smallholder teak farmers in the local communities because of mistrust of forestry officials, iii) conflict between these two major stakeholders concerning the ownership and utilization of goods and services on these teak farms. This conflict if not minimized may discourage these smallholder teak farmers and prevent them from participating in the project activities. To minimize the risks the following action will be taken; i) identify all potential risks and actions to mitigate these through group discussions with all stakeholders, ii) develop a conflict resolution mechanism together with the stakeholders, iii) educate and assist these smallholder farmers to register their private teak plantations with official government agency (i.e. Forest Service Division in their respective districts), thereby enabling them to have property rights and receive extension services. The budget amount from ITTO is US$567,022; the contribution from the executing agency is US$80,950.00. Of ITTO budget 32.4% is allocated to personnel and 12.5% to capital items.

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LIST OF ABBREVIATIONS AND ACRONYMS REDD Reducing Emissions from Deforestation and Forest Degradation FC Forestry Commission FSD Forest Services Division FAO Food and Agricultural Organisation FORIG Forestry Research Institute of Ghana UEF University of Eastern Finland NGO Non-Governmental Organisation HIPC Highly indebted Poor Country GTA Ghana Timber Association MTS Modified Taungya System GTMO Ghana Timber Millers Organisation

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MAP OF PROJECT AREA

Figure 1: Map of Ghana showing the study districts in highlight

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PART 1. PROJECT CONTEXT 1.1 Origin This proposal originated from the studies of Osei-wusu Bempah (2011), Nsiah (2010), Boateng (2008) and Djagbletey and Adu-Bredu (2007). These studies have been conducted largely in the forest-savannah transitional zone of Ghana where the proposed sites of the present project are also located. In all these studies, the main concerns of farmers growing teak on their own farmlands included lack of funds to invest including lack of micro-finance schemes to support them, difficulty with marketing including lack of knowledge of timber prices and carbon markets, sale of trees before rotation and restrictive policies related to sale and transport of harvested teak. In Djagbletey and Adu-Bredu (2007) study in Nkoranza district, 100 teak farmers out of 190 in 5 communities were surveyed; while in Boateng, (2008) study, 70 farm forest plantation practitioners in 10 communities in 3 different districts (Afigya-Sekyere, Offinso and Atwima) were surveyed. Dagbletey and Adu-Bredu (2007) studied the extent of adoption of tree (teak) growing on farmlands/agricultural lands despite the perception that teak degrades the land and remove undergrowth vegetation. The major findings of this study were that, teak plantations were mostly owned by indigenes and inter-planted with a mixture of food crops. The reasons for the intercropping were weed control, land suitability for crops, financial consideration, and soil fertility. The problems farmers encountered with the growth of teak were high maintenance cost, early canopy closure, dry weather, wildfires and insect pest. Decline in food crop yield was also reported with stand development. This was attributed to early canopy closure, soil fertility decline and annual wildfires. To address these problems and ensure sustainability of teak plantation on farmlands, application of either inorganic fertilizer or organic manure and the use of mounds to improve the decline in crop yield were suggested. Wider spacing (6.0 x 2.0 m and 4.0 x 4.0 m) and introduction of leguminous trees were also suggested in order to prolong cropping of the stands for food crops. In Nsiah (2010) study in Offinso districts, 165 smallholders of farm forest plantations from 5 communities were interviewed while 332 farmers from 52 local communities engaged in restoration of portions of 5 degraded forest reserves in Osei-wusu Bempah (2011) study were surveyed. Nsiah (2010) studied internal and external factors that induce farm household’s decision to establish forest (teak) plantation and the financial contribution of the established plantations to household’s income and livelihood strategies. The major findings in this study were that; education of household head, amount of household’s labor, size of household landholding, ownership of permanent land, availability of non-agricultural land and household participation in previous plantation development projects were important internal factors that positively influenced the establishment of teak plantations on private farm lands; while the external factors were availability of market and buyers; and farm household satisfaction with market prices for teak plantation. Factors this study finds to discourage farmers from establishing teak plantation were prohibitive rules and regulations guarding the harvesting and transportation of timber from private farmlands; and uncertainty in tree tenure outside state forest reserves due to unclear forest policy in relation to Timber Resources Management Act, 1998 (Act 547). For instance, section 4 (2) of the Act 547 grants the ownership of private planted trees to the owner. However, from the results of Nsiah (2010) study, most of the farm households feel this Act does not separate planted trees from the legal controls of naturally growing trees which require a Timber Utilization Contracts (TUC) and a Registered Property Mark to harvest. For example, Act 547 does not allow private holding of TUCs. This leads to the uncertainty in tree tenure and insecurity for individuals to establish forest plantation on their farmlands, because the Act (547) is not clear on whether a TUC can be issued to the private individual forest plantation owner. Further, Nsiah (2010) and Osei-wusu-Bempah (2011) find that farm forest plantation has the potential to enhance the socio-economic well-being of farmers. For instance, the analyses of these studies showed that households stand to gain monetary benefits and livelihood assets from these farm forest plantations. In view of these potential gains, they suggest the promotion of the farm forest (teak) plantation establishments by the households to improve upon their livelihood and the local environmental conditions. To do this, the 2 studies stressed on efforts to improve household’s access to information on teak markets and prices; micro-finance schemes to provide financial assistance to individual teak growers; and the development of cooperative trading networks in order to strengthen the bargaining powers of the households. Over the 4-5 year period of these studies, the concerns of these tree farmers appear not to have been addressed hence their continuous recurrence in the different years and studies (Insaidoo et al. 2012). The present project is designed to help address these concerns of the smallholder teak farmers and empower them to engage in profitable teak farming on their farmlands. This is to be achieved through improvement in the market access and economic returns for their investment in the teak growing. In this way,

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it is expected that environmental conservation, particularly on farmlands and livelihood improvement would be enhanced. 1.2 Relevance

1.2.1 Conformity with ITTO’s objectives and priorities

The current project is in compliance with the ITTA (2006) Article I objectives of (c) Contributing to sustainable development and to poverty alleviation (e) Promoting improved understanding of the structural conditions in international markets, including long-

term trends in consumption and production, factors affecting market access, consumer preferences and prices, and conditions leading to prices which reflect the costs of sustainable forest management

(j) Encouraging members to support and develop tropical timber reforestation, as well as rehabilitation and restoration of degraded forest land, with due regard for the interests of local communities dependent on forest resources

(k) Improving marketing and distribution of tropical timber and timber product exports from sustainably managed and legally harvested sources and which are legally traded, including promoting consumer awareness

(m) Encouraging members to develop national policies aimed at sustainable utilization and conservation of timber producing forests, and maintaining ecological balance, in the context of the tropical timber trade

(q) Promoting better understanding of the contribution of non-timber forest products and environmental services to the sustainable management of tropical forests with the aim of enhancing the capacity of members to develop strategies to strengthen such contributions in the context of sustainable forest management, and cooperating with relevant institutions and processes to this end;

(r) Encouraging members to recognize the role of forest -dependent indigenous and local communities in achieving sustainable forest management and develop strategies to enhance the capacity of these communities to sustainably manage tropical timber producing forests; and

(s) Identifying and addressing relevant new and emerging issues. The present project also conforms to the ITTO cross-cutting actions (ITTO action plan 2008-2011) of (a) Support research and development studies and projects to improve understanding of the marketplace,

efficient product processing, industrial and community utilization, the valuation and trade of forest goods and services, and better forest management in general

(m) Enhance the capacity of forest-dependent indigenous and local communities to sustainably manage

tropical timber-producing forests and engage in viable forest enterprises, including by improving linkages with commercial trade and government sectors

Further, the project has the following Forest Industry component (Goal 2, Action 8) Undertake research into wood properties and end-use requirements, paying particular attention to the properties and availability of lesser-used species and timber plantation species and the potential markets for them.

1.2.2 Relevance to the submitting country’s policies

This proposal is relevant to the National Forest and Wildlife Policy (1994) which has among its objectives as “to manage the existing forest estate for sustainability of timber and non-timber resources and to expand the nation’s forest cover for increased yields of domestic and industrial products, rehabilitation of denuded lands, protection of water catchments and stream banks and enhancement of the natural environment. It is also relevant to the sectoral programme on Forest Resources Development which has as one of its objectives as “to promote achievement of a 10% increase in the area of forest and tree cover through afforestation, reforestation, industrial plantations and agroforestry’’. In addition the proposal is relevant to Ghana poverty reduction strategy paper (GPRSP). The GPSRSP document emphasizes the need to: Protect, rehabilitate and sustainably manage the national land, forest and wildlife resources through

collaborative management and aimed at increasing the incomes of rural communities who own these resources.

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Enhanced community involvement in the management of forest and wildlife and savannah woodland resources and improve the benefit flows to communities from resource sales.

Increased community and farmer adaptation of improved land and water management techniques. Further this project contributes to the goals and specific objectives of the national forest plantation development programme (NFPDP) of Ghana: which are Goal: to develop a sustainable resource base that will satisfy the future demand for industrial timber and

enhance environmental quality, thereby relieving the pressure on the natural forest and also to accelerate the greening of the country.

Specific objectives: i) To restore the forest cover of degraded forest lands; ii) To generate employment as

means to reduce rural poverty; iii) To improve environmental quality and provide an opportunity for the country to tap the emerging benefits from the climate change market for carbon sequestration; iv) To reduce the wood deficit situation in the country; v) To enhance production of food crops and contribute to food security in the country

This project further contributes to the Ghana’s Forest Investment Project (FIP) whose overall objective is to enhance carbon stocks in the off-reserve areas in the High Forest Zones by engaging communities in approaches that also generate direct financial benefits and other environmental benefits for them leading to reduced deforestation and forest degradation in the landscape. Various projects in the Forest Sector have been completed and some of them are still being implemented to support the achievement of the objectives of various policies mentioned above. Tables 1 and 2 show the past and ongoing programmes and projects oriented to the development of Ghana’s forestry sector. The strategy and activities in this proposal are designed so as to complement these recent and ongoing projects. Table 1: Major current forestry projects in Ghana supported by multi and bilateral donors Project Agency Donor Natural Resources Management Programme (NRMP) - Ghanaian national forestry sector programme

Ministry of Lands & Forestry

Multi-donor supported programme implemented project-wise

Forest Sector Development Programme (FSDP) – part of the NRMP

Forestry Commission DFID

Protected Area Development Programme (PADP) – part of NRMP - First phase has ended 2002

Wildlife Division European Development Fund

The Forest Protection and Resource Use Management Project (FORUM)

Forestry Commission GTZ

Wildfire Management in the Transition Zone (WMTZ) – part of NRMP

Forestry Commission, Resources Management Support Centre

The Government of Netherlands

Table 2: The major previous or currently ongoing ITTO supported projects in the forest sector Project Agency Status (start /finish) Evergreen Club of Ghana / ITTO Youth in Forestry Project PD008/94 Rev.2 (F)

Evergreen Club of Ghana

Completed (1995/)

Conservation and Provenance Plantings and Integrated Pest Management to Sustain Iroko Production in West Africa PD003/95 Rev.2 (F)

Forestry Research Institute of Ghana – FORIG

Completed (1995/)

Forest Fire Management in Ghana PD032/98 Rev.1 (F) Forestry Research Institute of Ghana – FORIG

Completed (1998/2003)

Establishment of a Wood Workers and Craftsmanship Village PD046/96 Rev.2 (I)

Furniture and Wood Products Association, Ghana

Completed

Manpower Development for the Ghana Wood Industry Training Centre PD012/98 Rev.2 (I)

Timber Export Development Board (TEDB)

Completed

Silviculture and Economics of Improved Natural Forest Management in Ghana PD004/98 Rev.1 (F)


Completed (1999)

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Reforestation of the Abutia Plains by Indigenous Communities in the Volta Basin PD048/98 Rev.1 (F)

African Environmental Regeneration Movement

Completed (1999)

Handbook on Tree and Wood Identification of 100 Lesser-Used and Lesser-Known Timber Species from Tropical Africa with Notes on Ethnography Silviculture and Uses PD044/98 Rev.2


Completed (1999)

Rehabilitating Degraded Forest through Collaboration with Local Communities PD030/97 Rev.6 (F)


Completed (2005)

Participatory Tropical Forest Development by Women in Indigenous Communities PD049/98 Rev.1 (F)

31st December Women’s Movement

Completed (2000)

Processing and Utilization of Logging Residues through Collaboration with Local Communities and Forest Industries PPD039/02 Rev.2 (I)


Completed (2002)

Fire Fight Initiative: Prevention Rather than Cure PPD044/02 Rev.1 (F) (Pre-Project with a component in Ghana)

IUCN Completed (2002/2004)

Feasibility of Introducing and Developing Non-Destructive Testing Technologies and Methods for Assessment and Monitoring of Timber/Wood Structures in Various Structural and End-Use Applications in West Africa PPD004/00 Rev.3 (I)

Wood Industries Training Centre

Pending Finance

Development of the Integrated Forestry Compendium: a Knowledge Base for Forest Management and the Forest Industry PD087/01 Rev.1 (M)

Forestry Commission of Ghana

Pending Finance

Development of Energy Alternatives for the Efficient Utilization of Wood Processing Residue: Co-Generation and Briquette Production PPD053/02 Rev.2 (I)


Completed 2003

Investment Promotion and Enterprise Development of the Timber Industry in Ghana PPD063/02 (I)


Operational 2003

Increasing Productivity and Quality of West African Teak Plantations using Genetic Diversity and Sustainable Management EU-INCO funded project (WAFT) (ICA4-CT-2001-10090)


Operational 2002

Alternative pest management strategies for development of indigenous species plantations in Ghana


Operational 2005

Reducing Emissions from Deforestation and Forest Degradation through Collaborative Management with Local Communities


Operational 2009

PD 530/08 Rev.3 (F) Phase II of ITTO Project [PD 30/97 Rev.6 (F)] Management of Forests Established through Rehabilitation of Degraded Forests by Local Communities in Ghana (Ghana)

Forestry Research Institute of Ghana-FORIG

Operational 2012

1.3 Target Area 1.3.1 Geographic location

The activities of this project are located in the forest savanna transition zone of Ghana including Nkoranza North and South, Offinso North and South and Tano North and South administrative districts (Figure 1). The 2 Offinso districts are in the Ashanti region, while the remaining four districts are in the Brong Ahafo region. In all these districts, approximately 20 communities are selected on the basis of presence of individual teak farmers with their teak stands/farms in these districts.

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1.3.2 Social aspects The population of the Offinso North district according to the 2000 population and housing census report, stood at 64,414 and by the annual growth rate of 3.4%, it is projected to be about 96,211 in 2012. The population with access to safe drinking water in this district is approximately 22,800, equivalent to 23%. A larger segment of the remaining population relies on stream water for domestic use. This situation has serious health implications since these streams are heavily contaminated with agro-chemicals. There is also incidence of water borne diseases in this district. Waste Management is poor in the district and it is characterized by heaped refuse dump sites, unkempt surroundings and inadequate toilet facilities. All these indicate the general poor nature of this district. The population of the district is basically rural with only 31 per cent living in settlements with population 5,000. There are only four settlements with populations of more than 5,000. The population is concentrated along the major trunk roads which link the major settlements. The average household size is 8 as compared with the national figure of 5.24 persons for rural area. Each household has a large number of members to feed, clothe and house. Given the low average household income it is clear that most families are living a low standard of life as is evidenced by the expenditure pattern where a bulk of the family income goes into food, clothes and household energy needs. Sanitation in general is very poor. Sources of water in the Nkoranza districts include pipe-borne water, dam, streams, rivers, ponds and wells. These sources of water are very often polluted. Most people drink the water untreated

1.3.3 Cultural aspects Akan culture dominates in the Offinso South and North districts. However there are migrant settlers from the north who also practice their culture alongside the Akan tradition/culture. Vast tracts of land are available for agriculture and other productive ventures and the Offinso municipal assembly has initiated policies aimed at making land easier to secure and be used by private investors from outside the localities. Nkoranza people speak Bono, one of the Twi dialects of the Akan origin. Since the majority of residents in the Nkoranza South District are indigenes, the Bono language is the lingua-franca in the area. All settlers who join the people are motivated to learn the language to be able to communicate well. The language therefore offers opportunity to explain development issues to the people, since over 90 percent of residents understand or speak the language. The culture is also not diversified. The people are therefore unified by the single language spoken which gives the area unique cultural features and traditions that give identity, self-respect, and pride to the people. This promotes unity, stability and peace in the area. The head of the Nkoranza Traditional Area is the Omanhene or Paramount Chief, the supreme overlord. Next after the Omanhene are the Divisional chiefs, Ohene who take responsibility for the divisional areas. Each Divisional area comprises a number of villages (nkura). Each akura is inhabited by groups of family lineages or abusua forming clans. Each clan in the village is headed by an ‘abusuapanin’, the elder of the family group. Nkoranzaman’s Traditional Authority extends beyond the political boundaries of Nkoranza South District. It covers the political and Administrative districts of Nkoranza North, Nkoranza South, Kintampo North and South Districts. The land areas of these districts traditionally belong to the Omanhene of Nkoranza. There are two traditional councils in Tano North District, each of which has a paramount status. These are: Duayaw Nkwanta and Yamfo. Under each of the paramouncies, are a number of divisional chiefs and sub-chiefs. The chiefs, the custodians of culture and land, are the motivating force behind developmental projects in many communities. Fortunately, the District is not plagued with any serious/volatile disputes, land litigation and tribal conflicts, which hamper development. In spite of the heterogeneity in the District, there is generally peace, harmony and political stability in the District which auger well for the development of the District.

1.3.4 Economic aspects The predominant activity of the people in the Offinso north district is agriculture. It employs over 80% of the active population. Out of this figure, the youth constitute approximately 25%. Fishing is done on a limited scale whilst livestock production is basically on free range. Poultry is also done on a limited scale. Most of the population is engaged in food crop production. However, large tracts of fertile land is not cultivated due to the fact that they heavily depend on the use of hoes, cutlasses etc. The major crops cultivated are maize, plantain, cassava, yam and vegetables. The most dominant vegetable cultivated is tomatoes. The farmers experience postharvest loses because of the perishable nature of the produce and also because there are no ready markets for the produce. There are no storage facilities. The district has a good prospect for a

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tomato processing plant. In the Offinso forest district, private forest plantations on farmlands/agricultural lands are located in different parts. They are mostly teak farm holdings of varying sizes. They range from over 32 hectares, to less than 8 hectares per farmer etc. Some of these farms began in 1997 and the farmers are supported by other farmers. However one major problem these farmers encounter is inadequate financing in the establishment of these plantations. Aside these individuals and local communities growing teak on their farmlands in this district, a foreign company (FORM Ghana) in this district has planted 2,190 hectares of teak and 376 hectares of indigenous species as of 2012 and employed over 500 local workers. The target is to re-forest 10,000 hectares of the degraded forest reserves. As in most parts of the country, land in the Nkoranza District is controlled mainly by stools and families. Hence, chiefs and family heads act as custodians of all lands. They hold these lands in trust for and on behalf of citizenry and family members respectively. Most of the farmers interviewed, 82% had no problems with lands acquisition as land is easily obtained from chiefs and family heads provided one can pay the rent charges. 18% of farmers interviewed, however, complained of difficulties of high rents and inaccessibility to fertile lands. Population pressure on land is forcing farmers to reduce fallow periods and to adopt sedentary agriculture. The impact on land therefore has been rapid decline in soil fertility and serious land degradation. The major crops cultivated in the Nkoranza South districts include maize, yam, cassava, groundnut, cowpea, watermelon, onion, rice, plantain, cocoyam, and vegetables. However, maize and yam are the most widespread in the district. In terms of hectares cultivated, maize occupies 36.9% of the total cultivated land in the district. Yam and cassava occupies 24.6% and 21.1% respectively whilst rice occupies 4.6%. Cashew, which is a major tree crop in the district, occupies 2.1% of the cultivated land in the district. Other crops occupy smaller areas. The cultivated area for the various crops has been increasing over the years. Crops like watermelon, tomato, and cassava, which have been attracting higher prices in recent years, are increasingly being cultivated by farmers. About 15% of the population is engaged in commerce as a major occupation. The major Commercial activities in the District include marketing of food stuffs, Agricultural inputs, second hand clothing, footwear, provision, medical and agro chemical selling, general spare parts, beverages and toiletries. The major set-back of marketing in the district has been high cost of transportation. In the Nkoranza districts, majority of small holder farmers grow teak on their farmlands. They intercrop with other foods crops at the early stages of establishment. The age of the plantations ranged from three years to 16 years with the size ranging between 0.4 ha and 3.6 ha. Larger percentages of the farmers plant the teak trees at a spacing of 3.0 x 3.0 m, 4.0 x 4.0 m and 2.0 x 2.0 m. Tano Districts (2) are potentially endowed with mineral deposits including gold, diamond, clay and petroleum. Gold mining has been started by Newmont Ghana gold Ltd at Yamfo and Terchire. The high quality clay deposit in these districts has given birth to a lot of small and medium scale industries producing earth wares such as Bowls, Water Storage Pots, Flowerpots and Brick and tiles at Tanoso. Regarding official forest management, the Tano North and South districts are under the Bechem Forest district. From the records of the Forest Service Division in these districts (Bechem Forest District), over 10 private teak farmers in 6 to 7 different communities have so far been provided with documentation relating to marketing of timber from their teak stands. The sizes of these teak plantations on the private farmlands range from 0.5-10 ha at varying ages with planting distances of mostly 3m x3m. In addition to timber dealers, one key buyer/customer for these teak plantation on farmlands in all these districts is the poles (telephone and electricity) treatments firms/companies (e.g. Dupaul; By-and-ways) in the nearby cities and towns (Kumasi, Bechem etc) of Ghana.

1.3.5 Environmental aspects Until the 1983 bush fires, the offinso district was covered by large tracts of forests and cocoa farms and was believed to be home of fairies (mmoatia). The disappearance of the thick vegetative cover has left the area exposed. For this reason the four (4) forest reserves in the district are fast depleting due to logging and illegal chainsaw operators. There is also a waterfall on a stream known as Afrensu waterfalls which remains undeveloped. The Boabeng Fiema Monkey Sanctuary is located in now Offinso North District. Nkoranza South District lies within the transitional zone between the savannah woodland of northern Ghana and the forest belt of the south. The district was once a thick forest area but the vegetation has changed to that of savannah mainly due to the adverse effects of bush fires. The change in vegetation is also due to the rapid expansion of agriculture which adopts traditional crude method. Also due to uncontrolled operations of timber firms, the forests are being decimated.

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The savannah woodland and part of the areas of savannah re-growth largely characterize the eastern part of the district. The southern part of the district is largely marked by forest re-growth, made up of shrubs and grasses with few original tree species, especially silk cotton trees. Among the effects of the deforestation are the change in the rainfall pattern in the district and the disappearance of some forest resources such as snails, mushrooms and wildlife. The Tano South lies in the moist semi-deciduous forest zone and has gross forest area of 1322.52sq.km with about 157.45sq.km of this under forest reserve. However, there is a vast emergence of guinea savanna and this is found in areas like Techimantia and, Subriso No. 3 where cattle rearing are predominant. In Tano North District, there are two main forest reserves namely; the Bosomkese Forest Reserve which covers a total area of 138.41sq km and Apaape Forest Reserve which also covers an area of approximately 19.04sqkm. In these reserves, one can find different tree species such as Odum, Mahogany, Ceiba, Cassia and Akasaa. 1.4 Expected outcomes at project completion Forest Plantation Development, particularly outside the state forest reserves has not been very successful, even though the rate of deforestation and forest degradation in these forest areas are comparatively higher. The forest plantation development fund (FPDF) created under the Forest Plantations Development Fund Act, 2000 (Act 583) was instituted to bring about success in this program, but it has met much difficulty due to misapplication. It is now being reorganised and restructured to overcome these challenges and difficulties and to be able to achieve the set objective as the important tool for securing a reversal of the natural forest depletion rate and the promotion and establishment of large areas of forest plantations. Largely, this project when completed will contribute significantly to the success of the forest plantation development, particularly on farmlands in the forest savannah transition of Ghana. In this regard, the expected outcomes at project completion are improved management of the teak plantations on farmlands, higher quality of the teak produced, better prices for the teak sold and higher incomes to the communities. Another one is farmers’ knowledge on Ghana’s forest policies on farm forest plantation development and marketing increased. In general farmers would be empowered to be engaged in profitable teak farming. This would increase farm forest plantations and thereby reduce the rate of deforestation and forest degradation (DFD) and ultimately contribute to the global climate change mitigation initiatives. Other benefits from this project that would make the reduction in DFD possible are the strategies for involvement of smallholder forest plantation stands that would be developed in Ghana. These developed strategies are likely to contribute significantly to Ghana’s REDD+ strategies and activities.

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PART 2. PROJECT RATIONALE AND OBJECTIVES 2.1 Rationale

2.1.1 Institutional set-up and organizational issues The Executing Agency for this project will be the Forestry Research Institute of Ghana (FORIG), since all activities of the project are located in Ghana. FORIG will execute the project in active collaboration with (i) Forestry Services Division (FSD) of the Forestry Commission (FC) of Ghana, (ii) School of Forest Sciences of the University of Eastern Finland (UEF) (iii) and most importantly the local communities. i) The Forestry Service Division (FSD) will contribute to the identification of the communities to take part in the project since it has offices with staff in the various forest districts in the field where the project will be located; and have been collaborating with the local communities in the sustainable management of Ghana’s forest resources. FSD will provide technical advice on management of the project on site. FORIG and FSD are the mandatory government institutions charged with the management of Ghana’s forest resources. These two institutions have a good and long standing working relationship in the management of Ghana’s forest. They have also collaborated in execution of many projects including donor funded projects like ITTO, African Development Bank etc. This long standing relation between the executing agency and FSD will contribute to the effective implementation of this project. Despite the presence of the FSD in the field, it appears, it has very limited working relationship with local communities regarding management of trees on farmlands. More importantly trees local communities have planted on their farmlands. This seemingly strained relationship could be partly attributed to insufficient numbers of staff of FSD in the field and their low capacity in working with local communities. Another reason is because FSD pay more attention to the management of the forest reserves with very little attention to the management of trees on farmlands. Possibly owning to these limitations, FSD staff is unable to reach out to many farmers who grow trees on farmlands to explain the relevant forest policies to them and offer them the needed extension services. Through this project, FSD’s attention is likely to be drawn to the management of trees on farmlands, at least in the project areas. In addition, FSD working relation with local communities is likely to improve ii) The School of Forest Sciences of the University of Eastern Finland will contribute to training the local communities; provide technical backstopping regarding carbon stock assessment and timber measurement. With approximately 15,000 students and 2,800 members of staff, the University of Eastern Finland is one of the largest universities in Finland. The university has extensive international relations and it is involved in several international networks. The University of Eastern Finland enjoys a leading national position in the field of forest sciences. The School of Forest Sciences of the University of Eastern Finland (UEF) research priorities among others are i) effects of climate change on forests; ii) Forest ecology and biodiversity; iii) Forest resource inventory and GIS; iv) economic evaluation of forest benefits; v) forest economy and marketing, and vi) multi-objective and participatory forest planning. The inventory unit of the School of forest Sciences, of UEF has very high skills and experiences in the application of remote sensing and Area Borne Laser Scanning (ALS) technologies in the accurate estimation of tree parameters. This will be very important in execution of this project’s output on the estimation of teak timber and carbon sequestration and storage values. Through Prof Ari Pappinen since 2003, the school has worked in Ghana on two Academy of Finland projects in collaboration with FORIG. This long standing working relationship with UEF and its excellent academic and research expertise, particularly in the forest sciences( forest inventory and GIS), would enable UEF to provide significant inputs into the execution of this project. iii) Local communities, particularly, the private teak growers will be responsible for execution of the field work in collaboration with the executing agency and the other partners. Through this project, many of the challenges local communities face in growing trees on their farmlands are likely to be addressed. These challenges include their lack of sufficient knowledge on management of trees on farmlands; inadequate knowledge on procedures to register their planted trees with the FSD; lack of knowledge on the emerging climate change policy issues and the role of the trees on their farmlands in this process.

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2.1.2 Stakeholder analysis Stakeholder categories

Characteristics Problems, needs and interest

Potential

Involvement in project

Primary stakeholders

Local communities

Traditional rights of ownership and benefit from teak resources use

Conflict with chainsaw operators and illegal loggers on teak resource use on farmlands

Protection of the teak resources on farmlands

Primary project beneficiary

Private teak tree growers

Rights to their own teak plantations

Collaborate with FC and communities and conflicts with illegal operators

Contribute to development of teak plantations on farmlands

Primary project beneficiary

Landowners (Traditional Authority)

Customary and legal rights to teak plantations on farmlands

Represent communities in official decision-making processes and party to timber rights allocation process on teak plantations

Ensure sustainable flow of benefits from teak plantations on farmlands

One main actor in project implementation on site

Secondary stakeholders GTMO/GTA Logging rights

to naturally grown teak resources

Difficulty in accessing teak resources for profitable business due to dwindling timber resources

Promote farm forest plantation development

Collaborate with FC and traditional authorities to support implementation of project activities

Forest Service Division of Forestry Commission( FC)

Right to administer forest regulation regarding teak plantations on farmlands

Difficulty in achieving sustainable management of farm forests plantation of Ghana

Enforce protection, management and controls and monitoring teak plantations on farmlands outside forest reserve areas

- Collaborate in implementing relevant activities; beneficiary

Office of the administrator of stool lands

Provide information on revenue accruing from teak plantation timber

Manage revenue from timber from teak plantations

Ensuring forest resource revenue capture

Collaborate with FC to support project implementation; beneficiary

Ministry of Food and Agriculture (MoFA)

Provide education to farmers growing teak on farmlands with food crops

Collaborate with FC and local communities in the promotion of teak agroforestry on farmlands

Facilitate teak tree-food crops development on farmlands

One important actor that can facilitate implementation of project activities

Private poles treatment companies

Acquire teak trees from local communities as raw materials for treatment and trade in teak poles

Collaborate with FC and local communities in the promotion of teak plantation on farmlands

Potential to promote teak plantation development on farmlands and marketing

One important actor that can facilitate implementation of project activities

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Tertiary Scientific community- (FORIG, University, consultants etc )

Provide scientific information and technical assistance on teak plantations on farmlands

Difficulty in getting data on farm forest plantations to provide adequate scientific information and technical assistance for policy and management

Efficient management and utilization

Directly involved in project implementation

Environmental NGOs.

Advocacy on increasing timber resource base through teak plantation on farmlands

Advocacy and awareness creation on forest conservation and teak plantation on farmlands

Sustainable teak plantation resource use

Collaboration with government agencies academia and communities in implementation of the project activities

2.1.3 Problem analysis

The issue of deforestation and forest degradation (DFD) is not only a source of worry in Ghana; it has become a global concern. Lately, it has again attracted international attention, largely due to its contribution to the global warming and climate change. In an effort to address these problems, attention is drawn to reduction of DFD in the developing countries. The importance for this option is the cost effective nature of using DFD reduction to address these problems. In Ghana, the rate of deforestation and forest degradation (DFD) has been very rapid and it makes it difficult for the forest area to be known (Hansen et al, 2009). While Ghana’s forest sector contributes approximately 6%, per year to its GDP, economic cost of deforestation and forest degradation reduces this contribution by 4% per year. It is estimated that approximately 63% of the estimated cost of environmental degradation in Ghana is due to the rapid rate of forest depletion both in and outside forest reserves. Outside the forest reserves within the high Forest Zone (HFZ), cocoa farms, food crop farms, and fallow lands are the dominant land use types. Trees in these off-reserves have been used in Ghana’s farming system for maintaining soil productivity and obtaining favourable effects on crops (Amanor, 1996). However, the increasing demand for fuel wood, fodder and timber has greatly affected the practice of leaving trees on farms resulting in deforestation of these farmlands. Also traditional fallow periods have reduced drastically leading to land degradation and lower agricultural yields. The deforestation and degradation of farmlands outside the government forest reserves has become a growing concern. It is probably to address this concern that agricultural lands/farmlands have been included in the National Forest Plantation Development Programme (NFPDP) previously implemented within degraded forest reserves (FC, 2010,); and the Forest Investment Project (FIP)(MLNR, 2012). With an estimated deforestation rate of 65 0000 hectares per year in the whole country and 22000 hectares per year in the high forest zone (Abeberese, 2002), Ghana is expected to be without a forest cover within the not-too-distant future, unless effective measures are taken to reverse the trend. This scenario has made the need to intervene and halt the fast depletion of the country’s forest in both the forest and outside forest reserves more than necessary. This is more so because of the significant export earnings that accrues to the country from its forestry and wood processing sector and the global warming effect. To address this problem of rapid depletion of the forest resources, Ghana is making efforts and putting measures in place but with much difficulty. These measures include policy reform, strengthening of forest law enforcements, replanting of degraded forest reserves and conscious introduction of agro forestry into traditional farming systems on agricultural lands outside forest reserves. The planting of trees on farmlands is being improved by section 3(3) of the Forest Plantation Development Fund Act 2000, which makes provision for timber ownership rights to individuals who plant trees on farmlands (Agidee 2011). A follow-up to this is the revision of the Timber Resource Management (Amendment) Act 2002 (Act 617) (FC 2006b) which placed tree ownership in the hands of the farmer or planter of the tree. Following from these, on-farm tree planting appears to be growing throughout the high forest zone of Ghana (Insaidoo et al, 2012), but at slower rate due to numerous challenges and uncertainties growers of trees on farmlands still face In addition to these measures, Ghana has promoted various programs to address the diminishing natural forest resources by forest plantation development. Different types of models have been used in the plantation development in Ghana. These include individuals at their own expense, or sponsored by central government, the private sector, or non-governmental organizations. For instance, of the four types of on-farm tree planting identified in the high forest zone (Insaidoo et al. 2012), the Farmer initiative with little

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government support type is predominant in forest savannah transition. With this model, farmers plant trees on farmland on their own initiative, having been motivated by the forest policy reforms (FSD/FC)(Insaidoo et al. 2012) Currently the plantations Department (PD) of the Forest Services Division (FSD) of the Forestry Commission (FC) leads the forestry plantation development in the country under the National Forest Plantation Development Project (NFPDP) that began in 2001. The components of NFPDP include the Modified Taungya System (MTS) (establishment of plantations by FSD in partnership with local farmers), Government Forest Plantation Development Programme (HIPC)(hired labour and contract supervisors to establish industrial plantations) and the Private Plantation Development(release of degraded forest reserve lands by FC to private forest plantation developers). Among all these models in Ghana, the small-holder individual and community plantations are the most widely used (Nanang, 20012). These small-holder plantations in Ghana are made up of tree planting on individual household farm lands. However, smallholder forest plantations are often constraint by land tenure issues, limiting their sizes, although they are the ones that bring significant benefit to local communities compared to the other plantation models. Nsiah, (2010) study in the Offinso district underscored the potential contribution of smallholder farm forest plantation to increase overall household’s income and improvement in household’s well-being. In addition, the portion of lands in Ghana that are farmlands is larger than the forest reserves. Therefore degradation of these farmlands has significant negative consequences in Ghana. For instance, while Ghana’s forest zone covers 5 regions covering 84,000km squared; the forest reserves cover approximately 32, 000km squared and the rest is occupied by farmlands and bush-fallow lands. In most of these smallholder forest plantations, the dominant tree species in terms of hectares is teak (Tectona grandis) (FAO, 2002; Insaidoo et al 2012). This is despite the fact that the forestry department in Ghana does not assume an active role in teak cultivation or provides a forestry extension service to smallholders who have embarked on teak cultivation on their farmlands (Kollert and Cherebini, 2012). The high preference for the teak species for the plantation establishment compared to the other species is largely due to its resistance to wildfire effect that is rampant, particularly in forest savanna transition zone of Ghana; and the increasing international demand for it (Sools and Wanders, 2011). Despite these benefits for this species, smallholder individuals that grow it on their farmlands do not derive much of these benefits due to a number of problems they face in production and marketing. At the production stage involving the plantation establishment and management by these smallholder farmers, poor silvicultural practices are used. The use of these poor silvicultural practices lead to low quality timber, which is difficult for these smallholders to improve upon because of lack of capital to invest in teak planting and limited ability to wait for the completion of a teak rotation before requiring returns (Boateng, 2008). With limited access to capital/credit for investing in teak planting and the financial inability to wait for trees to reach the minimum diameters required by the timber industry, smallholders find it difficult to compete with government and private plantation companies, such as the FORM Ghana among others in Ghana (Sools and Wanders, 2011; Kollert and Cherebini, 2012). Another difficulty these individual teak growers face is that they tend to sell their teak trees to timber contractors at prices that are often well below market rates because of their limited access to markets, limited market information including both timber and international carbon markets, and inability to overcome transaction costs. These small-scale farmers often sell their teak trees to middlemen in the absence of sufficient marketing information about current prices and practices, and they are often not in a position to negotiate higher prices (Ball et al. 1999). Given that these teak plantations are often small holdings in nature and widely scattered apart, the transaction cost for the timber contractors that purchase such trees is high, and this contributes to the lower prices for the producers. Furthermore, some government policies are not favorable to these small-scale teak farmers because most of the regulations in terms of harvesting and transportation permits, registration procedures among others are made for large-scale timber production (Insaidoo et al. 2012). In summary, the challenges to profitable smallholder teak planting in Ghana include: - Low quality due to poor silvicultural practices (Djagbelety and Adu-Bredu, 2007) - Lack of capital to invest in teak plantation establishment and to protect against wildfire (Boateng, 2008;

Ball et al. 1999) - Inability to wait for the completion of a teak rotation before obtaining returns - Limited access to market information/linkages leading to prices that are well below market rates with high

transaction costs for timber contractors - Unfavorable policies.

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Notwithstanding all of these challenges, there is an increased interest and involvement of smallholders in teak plantation development in Ghana, particularly in the Offinso, Nkoranza and Tano districts which are the sites for the present project (Odoom, 1998; Djagbelety and Adu-Bredu, 2007; Schroeder et al. undated; Kollert and Cherebini, 2012). Farmers, such as the teak growers in the forest savannah transition zone of Ghana in general, are enthusiastic to adopt technologies that demonstrate benefits. There is also a pool of knowledge on silvicultural practices that could be modified to suit the needs of smallholder plantation systems (Sools and Wanders, 2011). The government of Ghana is also putting measures in place to facilitate smallholder involvement in timber plantations through the initiation of the forest plantation development fund (Ball et al. 1999). Additionally, the international carbon market is developing very fast (Diaz et al. 2011) and Ghana is putting various policy measures in place to be able to access the funds from these carbon markets. It is important these smallholder farm forest plantations practitioners are also enabled to benefit from these carbon funds and contribute to the reduction of the DFD and enhancing the carbon stocks and thereby also contribute to the climate change mitigation activities. High demand for teak products particularly in the international market has also driven timber industries to seek more teak timber produced by smallholders. All of these factors open opportunities for developing more profitable teak plantations by smallholders. Although the opportunity exists, the outlined constraints militating against smallholders’ involvement in more profitable teak production must be overcome. If not the euphoria that exists, among these smallholder farm forest plantation farmers in the villages in Ghana, might diminish while waiting for the trees to reach harvest dimensions, because the farmers are not receiving income during that time. This underscores the need to also link these farmers to the carbon market to earn interim incomes on their teak plantations while waiting for the final harvest of timber revenues.

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Figure 1: Problem tree

2.1.4 Logical framework worksheets Description and explanation of the inclusion of Specific Objective 2 The international carbon market is developing very fast and Ghana is putting the relevant policy measures in place to be able to access the funds from these markets. As result of this, it is important smallholder farm forest plantations practitioners are prepared to participate and to benefit from these carbon funds. By so doing, these farmers will also contribute to the reduction of the DFD and enhance the carbon stocks and thereby contribute to the climate change mitigation activities. In addition to this, there is a high demand for teak products particularly in the international market. This has driven timber industries to seek more teak timber produced by smallholders. All of these factors open opportunities for developing more profitable teak plantations by smallholders. This underscores the need to also link these farmers to the carbon market to earn interim incomes on their teak plantations while waiting for the final harvest of timber revenues. It is on the basis these factors that this project links climate change mitigation including benefiting from international

Low returns for smallholder teak farmers Continuous decrease in trees on farmlands,increasing DFD and decreasing livelihood opportunities for teak farmers

Decreasing returns for smallholder teak producers thereby limiting their involvement in profitable,

quality and productive teak plantationestablishment and retention of

trees on farmlands to improve livelihood and slow DFD

Poor introduction and adaption of efficientsilvicultural technologies by teak farmers

Lack of financing schemes to provide incentives for smallholder participation in profitable teak

productionLack of market access to smallholder teak farmers

Low plantation productivity and low quality teak logs

Lack of collateral on the part of smallholder teak farmers

Low prices that are below market rates for smallholder teak

Poor knowledge on good planting materials Unwillingness of financial institutions to provide loans to smallholder teak farmers

High transaction costs for timber trade associated smallholder teak trees

Poor silvicultural practices Unwillingness of farmers to approach financial institutions for loans for fear of tree crop failure

Lack of knowledge of timber & carbon value of standing teak tree

Lack of extension services for smallholder teakgrowers

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carbon funds to estimation of timber and carbon value of the smallholder teak stands. This makes it necessary to revise the proposal into two parts: one on marketing and economic livelihood of the teak growers and the other on carbon and timber values. The purpose for this revision is to help focus the outputs and the corresponding activities of the project in order to achieve the set specific objectives which are; 1) To increase the economic returns to smallholder teak farmers from establishment of forest

plantations on farmlands and 2) To increase the timber and carbon value through increase in contribution of small holder teak

plantations to timber resource base and carbon sequestration/storage As seen, these two specific objectives are not overlapping. They are rather complementary. An increase in timber and carbon values of the small holder teak stands will increase the economic returns to small holder teak farmers. Increasing the timber and carbon value of the teak stands stated in specific objective 2, is to be achieved through increase in the timber resource base and carbon sequestration of these stands. Outputs 3 and 4 in Figure 2 and their corresponding activities outlined are to be used to achieve this increase.

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The following diagram shows the project breakdown structure Figure: 2: Project work breakdown structure into 2 parts

Development Objective: To promote sustainable, profitable and quality teak plantation development on farmlands thereby curtailing deforestation, expanding timber resource base and improving livelihood

Specific Objective 1: To increase the economic returns to smallholder teak farmers from establishment of forest plantations on farmlands

Specific Objective 2: To increase the timber and carbon value through increase in contribution of small holder teak plantations to timber resource base and carbon sequestration/storage

Output 1.1: Introduction and adaptation of silvicultural technologies that improve returns to smallholder teak farmers

Output 2:1: Farmers’ Demonstration trials (FDTs) of teak stands established

Output 3:2: Financing schemes providing incentives for smallholder participation in profitable teak production identified

Output 4:2: Market access for smallholder teak producers enhanced

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Table 3: Logical framework matrix STRATEGY OF INTERVENTION MEASURABLE INDICATORS MEANS OF VERIFICATION KEY ASSUMPTIONS

Development Objective: To promote sustainable, profitable and quality teak plantation development on farmlands thereby curtailing deforestation, expanding timber resource base and improving livelihood

Impact indicators1) Smallholder teak productivity and

quality increased 2) Economic returns to smallholder teak

plantation farmers increased 3) Increase in numbers of local

communities participation in teak plantation on farmlands

Field visit Progress report Publications

Community teak farmers willingness to cooperate Community teak farms are available FSD readiness to support Community farmers need and willingness to have alternative income from teak plantations

Specific Objective 1: To increase the economic returns to smallholder teak farmers from establishment of forest plantations on farmlands

Outcome indicators1) Teak farmers capacities on best

silvicultural practices on teak farm improved

2) Teak farmers are able to sell their teak trees at higher prices

3. Livelihood of teak farmers improved 4) Knowledge of small holder teak

farmers on policies on farm forest plantation development increased

Community visits Project reports Publications

Teak farmers willingness to participate in project activities Teak farmers willing to be assisted Teak farmers are willing to learn Scientists work diligently

Specific Objective 2: To increase the timber and carbon value through increase in contribution of small holder teak plantations to timber resource base and carbon sequestration/storage

1. Target teak farmers acquire the skills to estimate timber and carbon value of standing teak

2) teak plantation on farmland increased

Community visits Project reports Publications

Teak farmers willingness to participate in project activities Teak farmers willing to be assisted Teak farmers are willing to learn Scientists work diligently

Output 1.1 Introduction and adaptation of silvicultural technologies that improve returns to smallholder teak farmers

Output indicators 10% farmers apply silvicultural technologies on teak plantations Productivity and quality of teak logs increase by 10% Extension services to teak farmers increased by 20%

Community visits Project reports Publications Manuals

Silvicultural technologies are available Farmer positive attitudes towards silvicultural technologies Extension services facilities and personnel are available

- 23 -

Output 2:1 Farmers’ Demonstration trials (FDTs) of teak stands established

6 demonstration trials plots of teak established 30% of smallholder teak farmers participate in demonstration trial

Report on implementation of demonstration trial Monitoring visits Field visits Report on cost analysis of establishing trial plots

Lands are available for teak demonstration trials Farmers are willing to participate in demonstration trials

Output 3:2 Financing schemes providing incentives for smallholder participation in profitable teak production identified

20% of farmers able to estimate timber and carbon values of teak trees 30% of teak farmers access micro finance services 20% farmers have their teak stands registered with FSD offices

Report on community teak carbon assessment Scientific publications Report on training Monitoring visits

Financing schemes are available and adaptable Teak farmers eagerness to access financing scheme FSD willingness to cooperate

Output 4:2 Market access for smallholder teak producers enhanced

Farmer knowledge on characteristics of teak wood required in the market increased by 10% Farmers capacity in teak stands trading increased by 10%

Monitoring visits Report on market access Report on teak value chain Scientific publication

Farmers willingness to learn Better marketing strategies are available Availability of capacity building framework

- 24 -

2.2 Objectives

Figure 3: Objective tree

2.2.1 Development objective and impact indicators To promote sustainable, profitable, quality teak plantation development on farmlands thereby curtailing deforestation, expanding timber resource base and improving livelihood Impact indicators 1) Smallholder teak productivity and quality increased 2) Economic returns to smallholder teak plantation farmers increased 3) Increase in numbers of local communities participation in teak plantation on farmlands

Increased returns for smallholder teak farmers Increased in trees on farmlands, slow down DFD and Increased

livelihood opportunities

Increasing returns for smallholder teak producersthereby promoting their involvement in profitable,

quality and productive teak plantation establishment and increase trees on farmlands

to improve livelihood and lower rate of DFD

High acceptance and adaption of efficient silvicultural technologies by teak farmers

Availability of financing schemes to provideincentives for smallholder participation inprofitable teak production

Market access to smallholder teak farmers made available

High plantation productivity and high quality Teak logs

Availability of collateral on the part of smallholder teak farmers

High prices that are above market rates for smallholder teak

Good knowledge on planting materials Increased willingness of financial institutions to provide loans to smallholder teak farmers

Decreased transaction costs for timber trade associated smallholder teak trees

Efficient silvicultural practicesIncreased willingness of farmers to

financial institution for loans for fear of treecrop failure

Availability of extension services for smallholder teak growers

- 25 -

2.2.2 Specific objective and outcome indicators Specific objective 1: To increase the economic returns to smallholder teak farmers from development of forest plantations on farmlands Outcome indicators 1) Teak farmers capacities on best silvicultural practices on teak farm improved 2) Teak farmers are able to sell their teak trees at higher prices 3) Livelihood of teak farmers improved 4) Knowledge of small holder teak farmers on policies on farm forest plantation development

increased Specific objective 2: To increase the timber and carbon value for smallholder teak farmers by increasing the contribution of their forest plantations to timber resource base and carbon sequestration/storage Outcome indicators 1) Target teak farmers acquire the skills to estimate timber and carbon value of standing teak 2) teak plantation on farmland increased

- 26 -

PART 3. DESCRIPTION OF PROJECT INTERVENTIONS 3.1 Outputs and activities

3.1.1 Outputs Output 1: Introduction and adaptation of silvicultural technologies that improve returns to

smallholder teak farmers Output 2: Farmers’ Demonstration trials (FDTs) of teak stands established Output 3: Financing schemes providing incentives for smallholder participation in profitable teak

production identified Output 4: Market access for smallholder teak producers enhanced 3.1.2 Activities For Output 1: 1. Identification and inventory of smallholder teak plantations 2. Organization of inception workshop 3. Preparation and signing of Memorandum of Understanding with identified community teak

farmers and Forest Service Division 4. Identification and evaluation of common silvicultural practices currently undertaken by farmers 5. Improve farmers’ knowledge of the benefits of applying the best silvicultural practices for teak

productivity and quality 6. Report on introduction and adaptation of silvicultural technologies For Output 2: 1. Identification and preparation of lands and planting 2. Organize interactive learning sessions for farmers 3. Apply silvicultural treatment to farmers teak stands 4. Produce silvicultural and carbon finance manual for smallholder teak plantations 5. Report on farmers demonstration trials For Output 3: 1. Analyze financial aspects of smallholder teak plantations-cost/benefit/multi-criteria analysis 2. Evaluate the financial needs and behaviour of teak farmers including government policies/

programs that provide micro credit to farmers 3. Educate farmers on farmland plantation development policies and registration 4. Assess carbon stocks and their values in the smallholder teak stands 5. Train farmers to assess the carbon stocks and values of their teak farms 6. Determine smallholder teak plantation establishment and governance to gain access to

international carbon market 7. Develop and pilot micro finance model for smallholder teak farmers 8. Report on financing schemes for teak farmers For Output 4: 1. Evaluate the value chain of teak wood from farmlands to wood processing industries 2. Determine the characteristics of wood required by domestic and international markets 3. Disseminate this knowledge to teak farmers 4. Train farmers on grading system and quality standards of teak used in industry, and improve

their capacity to estimate the value of teak trees 5. Analyse constraints on the teak marketing process by farmers, including government policies

and regulations 6. Develop better marketing strategies that would allow smallholder teak to gain a fair economic

return for teak farmers 7. Report on market access for smallholder teak producers

- 27 -

3.2 Implementation approaches and methods Action research approach will be employed. It will combine analytical approaches with active participation of the targeted stakeholders, in particular the smallholder teak growers at the project sites, to improve the institutional capacities of the targeted farmers. Various activities will be carried out and are categorized into four groups; Farmer and stakeholder mobilisation and sensitization, Methodological design, data collection, analysis and education, training and capacity building activities and dissemination of project findings Farmer and stakeholder mobilisation and sensitization, For the start-up workshop, the relevant stakeholders would be identified including the forest resources management (FSD staff), local government authorities (district assembly) and the target local communities. Before this, representatives from these groups would be invited to a workshop to brainstorm and find the strategies to help in the successful implementation of the project. The roles and responsibilities for each stakeholder in the project would be spelt out and memorandum of understanding developed and signed to guide and solicits commitment in the project implementation Methodological design, data collection, analysis and farmer education All studies that would be done, would involve a well representative sample for the data collection and analysis done thoroughly using the most up-to-date natural and social science methodologies of teak farm inventory, teak tree valuation, teak wood market analysis, small holder teak farmers surveys and group discussions among others. Capacities of farmers would be built on application of the best silvicultural technologies on their teak stands to increase the productivity and quality of the wood. Smallholder farmers would also be educated on Ghana’s forest policies related to private farm forest plantation development and marketing. Added to these, studies on planting the teak on farmlands to earn both timber and carbon credits would be done. Especially planting densities, hectares, rotation and the type of carbon crediting that would be suitable for these smallholder farm forest plantations would be made available. To do this, farmers would be educated on the carbon markets and thought how to measure the carbon and estimate monetary values in their trees. Community carbon assessment approaches will be used. In addition temporary crediting for smallholders forest plantation would be explored. IPCC identified methodologies would be field tested in estimating the carbon stocks in the teak stands through the use of tree biomass models and biomass conversion and expansion factors (BCEF). In addition to the field method, remote sensing techniques would be applied to determine the yield of the teak stands. With this, biophysical, volume and leave area index (LAI), parameter of teak plantations and the Crown Cover Fraction (CCF) would be used. With regards to the selling of timber as a business, farmers would be trained on the saw timber lumber estimation, lumber grading, the timber volume estimation and tree quality detection. In doing these farmers capacities would be built in the estimation of the value of their standing timber trees. To do this measurement of standing timber, logs and saw timber approaches will be used. In evaluating the financial aspects of these small holder teak stands, both cost benefit analysis and multicriteria analysis techniques will be applied In doing all these, efforts would be made to generate high quality scientific results that would contribute significantly to policy decision relevant for the development of farm forest plantation in Ghana. It would lead to meaningful improvement in the livelihood of the farmers that are engaged in this type of forestry activities. Training and capacity building activities The relevant training and capacity building lessons and materials would be carefully developed and training and capacity building activities thoroughly undertaken. These would be done in the best way that the target beneficiaries would directly benefit. Especially, women, the disadvantaged and poor farmers engaged in growing teak would be targeted to make sure that their livelihood is improved through their involvement in profitable and quality teak production and marketing Dissemination of project findings The project results would be disseminated largely through effective communication and knowledge management. Effective communication combines a set of skills including nonverbal communication, attentive listening, the ability to manage stress in the moment and the capacity to recognize and understand your own emotions and those of the person you’re communicating with. These skills will be employed to effectively disseminate the results. Knowledge management (KM) entails knowledge documentation, transfer, creation and application. KM will focus on creating knowledge culture that encourages learning, creation and sharing of knowledge among target beneficiaries of this project especially the teak farmers. In addition to these, the results and findings will be well packaged through the project completion reports, production of manuals, flyers, scientific articles into journals of high impact

- 28 -

factor. They would be widely distributed for the overall benefit of both domestic and International communities. An elaboration of the financing schemes under Output 3 The financing scheme would be a micro credit scheme to be developed. It would start with the mobilization of teak growers to form a cooperative/association. Already existing farmer association like the Offinso Teak Growers Association (OTGA) will be used. Each teak farmer would be required to register with this cooperative. Out of this, a cooperative credit scheme would then be created to be managed by a microfinance unit of the cooperative. Review of the performance of similar micro credit schemes and best practices in other studies (FAO, 2009) would be made to guide the establishment and operation of this scheme. The idea would be sold to micro-finance based Environmental NGOs and financial institutions mandated to provide credit to Ghana’s agricultural and forestry sectors e.g. commercial banks-agricultural development bank and the Ghana commercial banks. In addition to the linkage of this scheme to these financial institutions, it would be linked to the National Plantation development fund board for financial support. Through this cooperative and the credit scheme, registered members could also access loans from the financial institutions, using their teak stands as collateral. In this way, the problem of selling of teak before final rotation would be avoided. Description and explanation of the silvicultural technologies to be introduced and adapted under Output 1 The objectives of establishing teak plantation are to produce high quality timber and increase productivity (that is generally 8-10 m3/ha/year). The 3 main factors that affect growth and quality of teak plantation are site quality, seed supply and silvicultural management. The silvicultural technologies to be introduced are those that would aim to address these factors, so that the high quality teak can be produced with the increase in productivity. To do this, teak farmers in the project would be educated on the need and the benefit of site quality (e.g. high quality teak timber trees are produced from site with dry period of 3-5 months duration; soil is deep, well- drained, and alluvial with high calcium, organic matter and other element content; the soil pH is 6.5-7.5; teak is a light-demanding species and require intensive weeding in 1-5 years etc). Further, the small holder teak growers would be educated on the other factors that influence the quality and productivity of teak. These would include the supply of improved seed for planting (e.g. establishment and management of Seed Production Areas and Seed Orchards; Clonal propagation by tissue culture etc); and the need to carry out appropriate and timely silvicultural management on the teak stands in order to improve the growth and quality. On these topics, issues to be discussed are initial planting spacing, appropriate planting time (e.g. beginning of raining season), information on insects, time to conduct thinning and use of relevant Site Index and Stand Density Tables as thinning guidelines.

- 29 -

3.3 Work plan

Outputs and Activities

Responsible Party

Year 1 Quarter

Year 2 Quarter

Year 3 Quarter

1 2 3 4 1 2 3 4 1 2 3 4Output 1: Introduction and adaptation of

silvicultural technologies that improve returns to smallholder teak farmers

1.1 Identification and inventory of smallholder teak plantations FORIG/UEF/

FSD/LC

1.2 Organization of inception workshops FORIG/UEF/FSD

1.3 Preparation and signing of memorandum of understanding

FORIG/FSD

1.4 Identification and evaluation of common silvicultural practices currently undertaken by farmers

FORIG/FSD

1.5 Improve farmers' perceptions and knowledge of the benefits of applying best silvicultural practices for teak productivity and quality

FORIG/FSD

1.6 Report on introduction and adaptation of

silvicultural technologies FORIG

Output 2: Farmers' Demonstration Trials (FDTs) of teak stands established

2.1 Identification and preparation of lands and seedlings for planting

FORIG/FSD

2.2 Organize interactive learning sessions for farmers

FORIG/FSD

2.3 Applying silvicultural treatment to farmers teak stand

FORIG/UEF/FSD

2.4 Produce silvicultural and carbon finance manual for smallholder teak plantations

FORIG/UEF/FSD

2.5 Report on farmers demonstration trials FORIG Output 3: Financing schemes providing

incentives for smallholder participation in profitable teak production identified

3.1 Analyse the financial aspects of

smallholder teak plantations-cost benefit-multicriteria analysis

FORIG/FSD

3.2 Evaluate the financial needs and behaviour of teak farmers including government policies and programs that provide micro credit to farmers

FORIG/FSD

3.3 Educate farmers on farmland plantation

development policies and registration of their teak stands

FORIG/FSD

3.4 Assess carbon stocks and values of smallholder teak stands

FORIG/UEF/FSD

3.5 Train farmers to assess the carbon stocks and values on their teak farms

FORIG/FSD

3.6 Determine smallholder teak plantation establishment and governance to gain access to the international carbon finance/markets

FORIG/UEF/FSD

- 30 -

3.7 Develop and pilot microfinance model for smallholder teak farmers

FORIG/FSD

3.8 Report on financing schemes for teak farmers

FORIG

Output 4: Market access for smallholder teak producers enhanced

4.1 Evaluate the chain of teak wood from farmers to wood processing industries

FORIG/FSD

4.2 Determine the characteristics of wood required by domestic and international markets

FORIG/FSD

4.3 Disseminate this knowledge to teak farmers

FORIG/FSD

4.4 Train farmers on the grading system and quality standards of teak used in industry and improve their capacity to estimate the value of teak trees

FORIG/FSD

4.5 Analyse constraints on the teak

marketing process by farmers, including government policies and regulations

FORIG/FSD

4.6 Develop better marketing strategies that would allow smallholder teak to gain a more fair economic return for teak production

FORIG/FSD

4.7 Report on market access for smallholder

teak production FORIG

Output 5: Non-activity based expenses 5.1 Non-activity based expenses

- 31 -

3.4 Budget 3.4.1 Consolidated budget by component (in USA dollars)

Budget Components Input Unit Costs

TOTAL YEAR 1 YEAR 2 YEAR 3

10 Project Personnel

11. National Experts (Long term) 4.0 400.00 1,600.00 1,600.00

- -

11.1. Forest Economist 26.0 400.00 10,400.00 3,200.00 3,600.00

3,600.00

11.2. Inventory specialist 10.0 400.00 4,000.00 2,000.00

400.00 1,600.00

11.3. Agroforester. 26.0 400.00 10,400.00 3,600.00

3,600.00 3,200.00

11.4. Wood technologist 24.0 400.00 9,600.00 2,800.00

3,600.00 3,200.00

11.5.GIS/Remote sensing 24.0 400.00 9,600.00 3,200.00

3,600.00

2,800.00

11.6. Technician 46.0 300.00 13,800.00 5,400.00

4,800.00 3,600.00

11.7. Supporting staff 28.0 300.00 8,400.00 2,900.00

2,700.00 2,800.00

11.8. Project coordinator 66.9 700.00 46,800.00 15,600.00

15,600.00 15,600.00

12.1. Project secretary 36.0 300.00 10,800.00 3,600.00

3,600.00

3,600.00

12.2. Driver 36.0 300.00 10,800.00 3,600.00

3,600.00 3,600.00

14.1. International consultant 25.6 3,000.00 76,820.00 25,410.00

26,000.00

25,410.00

19. Component Total 338.9 7,300.00 213,020.00 72,910.00 71,100.00 69,010.00

20 Sub-contracts

21. Sub-contract (Topic e.g. Mapping, etc.) - - - - -

22. Sub-contract (Topic 2) - - -

- -

29. Component Total - - -

- -

- 32 -

30 Travel

31. Daily Subsistence Allowance - - -

- -

31.1. National Experts/Consultants 505.0 100.00 50,500.00 17,500.00

19000.00

14,000.00

31.2. International Consultants 26.0 150.00 3,900.00 2,400.00

1500.00

-

31.3. Technicians 295.5 60.00 17,730 7,080.00 7200.00 3450.00

31.4. Supporting staff 271.0 100.00 27,100.00 5,300.00

10,800.00

11,000.00

31.5. Local community 20.0 10.00 200.00 200.00

-

-

31.6. Assistant 1 101.0 50.00 5,050.00 1,800.00

1,750.00

1,500.00

31.7. FSD staff 15.0 100.00 1,500.00 1,500.00

-

-

32. International Travel 0.0 - - - - -

32.1. National Experts/Consultants 94.0 100.00 9,400.00 7,600.00 - 1,800.00

32.2. International Consultants 5.0 2,600.00 13,000.00 5,500.00

7,000.00

500.00

32.3. Others 0.0 - - - - -

33. Local Transport Costs 0.0 - - -

-

-

33.1. National Experts/Consultants 0.0 - - -

-

-

33.2. International Consultants 3.0 1,000.00 3,000.00 1,000.00

1,000.00

1,000.00

33.3. Others 0.0 - - - - -

39. Component Total 1,335.5 4,270.00 131,380.00 49,880.00 48,250.00 33,250.00

40 Capital Items

41. Premises 3.0 4,000.00 12,000.00 4,000.00

4,000.00

4,000.00

42. Land 3.0 4,500.00 13,500.00 4,500.00

4,500.00

4,500.00

43. Vehicles 1.0 47,000.00 47,000.00 47,000.00

-

-

- 33 -

44. Capital Equipment 0.0 - - -

- -

44.1. Computer Equipment (specify) 3.0 3,200.00 9,600.00 8,800.00

800.00

-

44.2. Forestry Equipment (specify) 3.0 4,333.33 13,000.00 -

13,000.00

-

44.3. Others 1.0 1,500.00 1,500.00 1,500.00

-

-

49. Component Total 14.0 64,533.33 96,600.00 65,800.00 22,300.00 8,500.00

50 Consumable Items

51. Raw materials 3.0 1,500.00 4,500.00 1,500.00

1,500.00

1,500.00

52. Spares 3.0 500.00 1,500.00 500.00

500.00

500.00

52.1 Vehicle maintenance 24.0 200.00 4,800.00 1,800.00

1,600.00

1,400.00

53.1. Fuel 5,500.0 5.00 27,500.00 11,000.00

10,500.00

6,000.00

53.3 Venue hiring 56.0 100.00 5,600.00 1,300.00

2,400.00

1,900.00

54. Office Supplies 29.0 193.10 5,600.00 2,100.00

1,800.00

1,700.00

55. Education and publication 3.0 2,000.00 6,000.00 2,000.00

2,000.00

2,000.00

59. Component Total 5,618.0 4,498.10 55,500.00 20,200.00 20,300.00 15,000.00

60 Miscellaneous

61. Sundry 0.0 - - - - -

61.1 Incentives to local communities 24.5 1,000.00 24,500.00 10,500.00

6,000.00

8,000.00

61.2. Workshops 110.0 100.00 11,000.00 6,000.00

-

5,000.00

61.3. Meals 310.0 20.00 6,200.00 1,300.00

2,600.00

2,300.00

61.4. Communication 41.0 100.00 4,100.00 2,500.00

900.00

700.00

- 34 -

61.5. Publishing 416.0 20.00 8,320.00 2,320.00

1,000.00

5,000.00

62. Auditing 3.0 1,200.00 3,600.00 1,200.00

1,200.00

1,200.00

63. Steering committee meeting 3.0 1,000.00 3,000.00 1,000.00 1,000.00 1,000.00

69. Component Total 907.5 3,440.00 60,720.00 24,820.00 12,700.00 23,200.00

70 National Management Costs

71. Executing Agency Management Costs - - - -

72. Focal Point Monitoring -

79. Component Total - - - - SUBTOTAL 557,220.00 233,610.00 174,550.00 148,960.00

80 Project Monitoring and Administration

81. ITTO Monitoring and Review 30,000

82. ITTO midterm, final, ex-post Evaluation Costs

83. ITTO Programme Support Costs (12% on items 10 to 82 above)

60,752 60,752

84. Donor Monitoring Costs -

89. Component Total 90,752 60,752

90 Refund of Pre-Project Costs (Pre-project budget)

100 GRAND TOTAL 647,972.00

- 35 -

3.4.2 Yearly Project Budget by Source-ITTO (in US Dollars)

Total Year 1 Year 2 Year 3

Budget Components

10. Project personnel 183,620.00 63,110.00 61,200.00 59,310.00

20. Sub-contracts - - - -

30. Duty travel 105,330.00 45,630.00 37,450.00 22,250.00

40. Capital items 71,100.00 57,300.00 13,800.00 -

50. Consumable items 55,500.00 20,200.00 20,300.00 15,000.00

60. Miscellaneous 60,720.00 24,720.00 12,700.00 23,300.00

Subtotal 1 476,270.00 210,960.00 145,450.00 119,860.00

80. ITTO Monitor. Evaluation. Costs

81. Monitoring and Review Costs (effective estimation) 30,000

82. Evaluation Costs (effective estimation) -

Subtotal 2 506,270.00

83. Program Support Costs (12% of Overall Budget) 60,752.00

84. Donor Monitoring Costs -

90. Refund of Pre-Project Costs -

ITTO TOTAL 567,022.00

- 36 -

3.4.3 Yearly Project Budget By Source-E. Agency (in US Dollars)

Annual Disbursements

Total Year 1 Year 2 Year 3

Budget Components

10. Project personnel 29,400.00 9,800.00 9,900.00 9,700.00

20. Sub-contracts - - - -

30. Duty travel 26,050.00 4,250.00 10,800.00 11,000.00

40. Capital items 25,500.00 8,500.00 8,500.00 8,500.00

50. Consumable items - - - -

60. Miscellaneous - - - -

70. Executing Agency Management Costs - - - -

EXECUTING AGENCY/HOST GOVT. TOTAL 80,950.00 22,550.00 29,200.00 29,200.00

- 37 -

3.4.4. Activity and Component (in US Dollars) Quantity ITTO

Outputs/ activities

Description

Bud

get c

ompo

nen

t

Yea

r 1

Yea

r 2

Yea

r 3

Units

Uni

t co

st U

S$

Tot

al c

ost U

S$

Yea

r 1

Yea

r 2

Yea

r 3

Exe

cutin

g ag

ency

Output 1 Introduction and adaptation of silvicultural technologies that improve returns to smallholder teak farmers A1.1 Identification and inventory of smallholder teak plantations

Famer field meeting 61.1 6 Event 250 1500 1500

Incentives to local representatives 61.1 1 Lumpsum 1000 1000 1000

Forest economist 11.1 1 Person-month 400 400 400

Inventory specialist 11.2 1 Person-month 400 400 400

Agroforester 11.3 1 Person-month 400 400 400

Wood Technologist 11.4 1 Person-month 400 400 400

GIS/Remote sensing specialist 11.5 1 Person-month 400 400 400

Technicians 11.6 3 Person-month 200 600 600

Supporting staff 11.7 3 Person-month 100 300 300

venue hiring 53.3 1 venue 100 100 100

fuel 53.1 300 Gallon 5 1500 1500

vehicle maintenance 52.1 1 Lumpsum 200 200 200

DSA national experts 31.1 25 Person-day 100 2500 2500

DSA Technicians 31.3 15 Person-day 60 900 900

DSA International consultant 31.2 10 Person-day 150 1500 1500

DSA supporting staff 31.4 15 Person-day 50 750 750

International travel 32.2 1 Year 2000 2000 2000

communication 61.4 2 Year 100 200 200

office supply 54 1 Year 100 100 100

- 38 -

A1.2 Organization of inception workshops workshop participants 61.2 50 participant 100 5000 5000












DSA Assistant 1 31.6 1 Person-day 50 50 50

venue hiring 53.3 6 Venue 100 600 600

fuel 53.1 200 Gallon 5 1000 1000


local travel 32.1 55 Year 100 5500 5500


meals 61.3 65 participant 20 1300 1300


publishing 61.5 50 Units 20 1000 1000

A1.3 Preparation and signing of Memorandum of understanding

National experts 11 4 Person-month 400 1600 1600

community teak farmers 61.2 20 Person-day 50 1000 1000


supporting staff 11.7 5 Person-month 100 500 500

Duty travel for local community farmers 31.5 20 Year 10 200 200

- 39 -





DSA FSD officials 31.7 15 Person-day 100 1500 1500

fuel 53.1 300 Gallon 5 1500 1500






A1.4 Identification and evaluation of common silvicultural practices currently undertaken by farmers







International consultant-Silviculturalist and carbon expert

14.1 1 Consultant 25410 25410 25410








fuel 53.1 300 Gallon 5 1500 1500


- 40 -





A1.5 Improve farmers' perceptions and knowledge of the benefits of applying best silvicultural practices for teak productivity and quality Famer field meeting 61.1 6 Event 250 1500 1500













fuel 53.1 300 Gallon 5 1500 1500





A1.6 Report on introduction and of silvicultural technologies





- 41 -







Output 2 Farmers' Demonstration Trials (FDTs) of teak stands established A2.1 Identification and preparation of lands and seedlings for planting













fuel 53.1 200 Gallon 5 1000 1000




A2.2 Organize interactive learning sessions for farmers




- 42 -










fuel 53.1 200 Gallon 5 1000 1000



meals 61.3 50 Participant 20 1000 1000




A2.3 Applying silvicultural treatment to farmers teak stand

Incentives to local representatives 61.1 1 Lumpsum 1000 1000

Forest economist 11.1 1 Person-month 400 400

Inventory specialist 11.2 1 Person-month 400 400

Agroforester 11.3 1 Person-month 400 400

Wood Technologist 11.4 1 Person-month 400 400

GIS/Remote sensing specialist 11.5 1 Person-month 400 400

Technicians 11.6 3 Person-month 600 600

Supporting staff 11.7 3 Person-day 300 300

DSA national experts 31.1 25 Person-day 2500 2500

DSA Technicians 31.3 15 Person-day 900 900

DSA Assistant 1 31.6 5 Person-day 250 250

- 43 -

DSA supporting staff 31.4 15 Person-day 1500 1500

fuel 53.1 200 Gallon 1000 1000

vehicle maintenance 52.1 1 Lumpsum 200 200

equipment for treatment (pole pruners, motorised pruning saw, sickle, machete, paint or tar)

44.2 1 Units 2000 2000

communication 61.4 1 Year 100 100

A2.4 Produce silvicultural and carbon finance manual for smallholder teak plantations






International consultant Silviculture and carbon expert

14.1 1 Consultant 25410 25410 25410

GIS/Remote sensing specialist 11.5 1 Person-day 400 400 400

validation workshop participants 61.2 30 Participant 100 3000 3000





Office supply 54 1 Year 100 100 100

fuel 53.1 200 Gallon 5 1000 1000


Publishing 61.5 200 Units 20 4000 4000




- 44 -

A2.5 Report on farmers demonstration trials











Output 3 Financing schemes providing incentives for smallholder participation in profitable teak production identified A3.1 Analyze the financial aspects of smallholder teak plantations- cost benefit-multicriteria analysis



wood technologist 11.3 1 Person-month 400 400 400

incentives to local communities 61.1 1 Person-month 1000 1000 1000


software muliticriteria analysis 44.3 1 Units 1500 1500 1500






DSA National experts 31.1 25 Person-day 100 2500 2500

DSA technicians 31.3 15 Person-day 60 900 900



- 45 -

laptop computer 44.1 1 Units 800 800 800

fuel 53.1 300 Gallon 5 1500 1500

A3.2 Evaluate the financial needs and behaviour of teak farmers including government policies and programs that provide micro credit to farmers




incentives to local communities 61.1 1 Lumpsum 1000 1000 1000

GIS/Remote sensing specialist 11.5 1 Personnel 400 400 400

fuel 53.1 300 Gallon 5 1500 1500










A3.3 Educate farmers on farmland plantation development policies and registration of their teak stands






fuel 53.1 300 Gallon 5 1500 1500




- 46 -







A3.4 Assess carbon stocks and values of smallholder teak stands





GIS/Remote sensing specialist 11.5 1 Personnel 400 400 400


14.1 1 Consultant 26000 26000 26000







DSA consultant 31.2 10 Person-day 150 1500 1500




fuel 53.1 300 Gallon 5 1500 1500

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GIS/Remote sensing equipment ( digital camera with fish eyes lens & tripod , satellite imagery, GPS receiver, measurement tape 50m, diameter tape, laser distance meter, image processing program, SPSS, Hemi view program, topographic map)

44.2 1 Units 5000 5000 5000

international travel 32.2 1 Year 2000 2000 2000

DSA Assistant 1 31.6 5 Personnel 50 250 250

A3.5 Train farmers to assess the carbon stocks and values on their teak farms















fuel 53.1 300 Gallon 5 1500 1500


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A3.6 Determine smallholder teak plantation establishment and governance to gain access to the international carbon finance/markets















fuel 53.1 300 Gallon 5 1500 1500


A3.7 Develop and pilot microfinance model for smallholder teak farmers











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fuel 53.1 300 Gallon 5 1500 1500




A3.8 Report on financing schemes for teak farmers









Output 4 Market access for smallholder teak producers enhanced A4.1 Evaluate the value chain of teak wood from farmers to wood processing industries











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fuel 53.1 300 Gallon 5 1500 1500

A4.2 Determine the characteristics of wood required by domestic and international markets














fuel 53.1 200 Gallon 5 1000 1000

A4.3 Disseminate this knowledge to teak farmers









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fuel 53.1 200 Gallon 5 1000 1000




A4.4 Train farmers on the grading system and quality standards of teak used in industry and improve their capacity to estimate the value of teak tress













fuel 53.1 200 Gallon 5 1000 1000



Tree volume measurement equipment (calipers or converted diameter tape, length tape, range finder (vertex forester), laser range finder, spiegel relaskop)

44.2 1 Units 6000 6000 6000

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A4.5 Analyze constraints on the teak marketing process by farmers, including government policies and regulations















fuel 53.1 200 Gallon 5 1000 1000

A4.6 Develop better marketing strategies that would allow smallholder teak to gain a more fair economic return for teak producers




Validation workshop participants 61.2 20 participant 100 2000 2000






DSA Supporting staff 31.4 15 Person-day 100 1500 1500

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fuel 53.1 100 Gallon 5 500 500

A4.7 Report on market access for smallholder teak production










Output 5 Non-activity based expenses

A5.1 Non-activity based expenses

project co-ordinator 11.8 12 12 12 Person-month 700 25200 8400 8400 8400

project co-ordinator 11.8 12 12 12 Person-month 600 21600 21600

driver 12.2 12 12 12 Person-month 300 10800 3600 3600 3600

project secretary 12.1 12 12 12 Person-month 300 10800 3600 3600 3600

4WD Vehicle 43 1 Units 47000 47000 47000

premises 41 1 1 1 Year 4000 12000 12000

land 42 1 1 1 Year 4500 13500 13500

office supply (papers, cartridges, etc) 54 1 1 1 Year 1000 3000 1000 1000 1000

Desktop computer and accessories (printer scanner, photocopier, camera)

44.1 1 Units 8000 8000 8000

equipment repairs 52 1 1 1 Year 500 1500 500 500 500

consummables 51 1 1 1 Year 1500 4500 1500 1500 1500

media publication and education 55 1 1 1 Year 2000 6000 2000 2000 2000

attending conferences and seminars 32.2 1 1 1 Year 3500 9000 3500 5000 500

steering committee 63 1 1 1 Year 1000 3000 1000 1000 1000

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Duty travel and transportation for monitoring

33.2 1 1 1 Year 1000 3000 1000 1000 1000

Auditing 62 1 1 1 Year 1200 3600 1200 1200 1200

Distribution of outputs (roles) and Budget among Project Partners

OUTPUTS Budget of FORIG and FSD(USA$)

Budget of UEF(USA$)

Total in USA $

Output 1: Introduction and adaptation of silvicultural technologies that improve returns to smallholder teak farmers

107060 0 107060

Output 2: Farmers’ Demonstration trials ( FDTs) of teak stands established 84110 0 84110 Output 3: Financing schemes providing incentives for smallholder participation in profitable teak production identified

0 115850-9300=106550

115850

4. Output 4: Market access for smallholder teak producers enhanced 67700 0 67700 Output 5: Non-activity based expenses 182500 0 182500 Total in USA $ 440370 115850 557220

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Activity budget (USA DOLLARS) for UEF Quantity ITTO

Outputs/ activities

Description

Bud

get c

ompo

nent

Yea

r 1

Yea

r 2

Yea

r 3

Units

Uni

t co

st U

S$

Tot

al c

ost

US

$

Yea

r 1

Yea

r 2

Yea

r 3

Exe

cutin

g ag

ency

Output 3 Financing schemes providing incentives for smallholder participation in profitable teak production identified

A3.1 Analyse the financial aspects of smallholder teak plantations- cost benefit-multicriteria analysis






software muliticriteria analysis 44.3 1 Units 1500 1500 1500



Communication 61.4 1 Year 100 100 100








Fuel 53.1 300 Gallon 5 1500 1500

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A3.2 Evaluate the financial needs and behaviour of teak farmers including government policies and programs that provide micro credit to farmers






Fuel 53.1 300 Gallon 5 1500 1500






DSA National experts 31.1 25 Personnel 100 2500 2500

DSA technicians 31.3 15 Personnel 100 1500 1500

DSA supporting staff 31.4 15 Personnel 60 900 900

DSA Assistant 1 31.6 5 Personnel 50 250 250

A3.3 Educate farmers on farmland plantation development policies and registration of their teak stands






Fuel 53.1 300 Gallon 5 1500 1500






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A3.4 Assess carbon stocks and values of smallholder teak stands







14.1 1 Person-month 26000 26000 26000







DSA consultant 31.2 10 Person-day 150 1500 1500




Fuel 53.1 300 Gallon 5 1500 1500

GIS/Remote sensing equipment ( digital camera with fish eyes lens & tripod , satellite imagery, GPS receiver, measurement tape 50m, diameter tape, laser distance meter, image processing program, SPSS, Hemi view program, topographic map)

44.2 1 Units 5000 5000 5000

international travel 32.2 1 Year 2000 2000 2000

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A3.5 Train farmers to assess the carbon stocks and values on their teak farms















Fuel 53.1 300 Gallon 5 1500 1500


A3.6 Determine smallholder teak plantation establishment and governance to gain access to the international carbon finance/markets










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Fuel 53.1 300 Gallon 5 1500 1500


A3.7 Develop and pilot microfinance model for smallholder teak farmers














Fuel 53.1 300 Gallon 5 1500 1500


Meals 61.3 65 participant 20 1300 1300


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A3.8 Report on financing schemes for teak farmers









Total 115850-9300 = 106550

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3.5 Assumptions, risks, sustainability 3.5.1 Assumptions and risks

The main assumptions are i) smallholder teak stands on farmlands are available, ii) smallholder teak farmers are available and are willing to be assisted to improve their economic outcomes from these farm forest plantations, iii) The forestry department staff willing to cooperate in the project implementation, iv) scientists and all other project staff knowledgeable and committed to carrying out the project activities. Thus major stakeholders in this regards are the small holder teak farmers in the local communities and the officials of Forest Services Division who are currently responsible for forest resources in Ghana. The likely risks for this project may involve i) lack of co-operation on the part of the forestry administrators ii) lack of interest on the part of the smallholder teak farmers in the local communities because of mistrust of forestry officials, iii) conflict between these two major stakeholders concerning the ownership and utilization of goods and services on these teak farms. This conflict if not minimized may be discouraged these smallholder teak farmers and prevent them from participating in the project activities. To minimize the risks the following action will be taken; i) identify all potential risks and actions to mitigate these through group discussions with all stakeholders, ii) develop a conflict resolution mechanism together with the stakeholders, iii) educate and assist these smallholder farmers to register and certify their teak stands, thereby enabling them to have property rights.

3.5.2 Sustainability

To ensure sustainability of smallholder teak farm plantation development, stakeholders especially farmers engaged in it would be the main focus. They would be empowered and encouraged with needed knowledge and business skills to sustain their farm forest business independently. They will be encouraged to form networks among themselves and the other users along the value chain. The district assembly, which are the local government authority and district forestry would be encouraged and adequately informed about these smallholder teak farm plantation so that they can buy into it, in turn offer the necessary advice and assistance to these farmers. Because currently the desire to achieve environmental stability and sustainable provision of environmental services are of prime essence to Ghana, this project would attract the support of the government and all the local communities. Although forestry projects have a long gestation period it is hoped that the project objectives will be achieved within the project’s duration. So that, lessons learnt will serve as significant inputs in the overall improvement of Ghana’s forest management, poverty reduction strategies and the global climate change mitigation efforts. The study area will serve as centre for knowledge transfer from participating communities to non-participating ones. Additionally, the following measures will be pursued to ensure sustainability of the outcomes and outputs of the project after ITTO funding has expired: (i) The results of the project would be package as an innovative model to complement existing efforts on

collaborative forest management being pursued by the Forestry Commission (ii) Ensure that the activities are mainstreamed into the yearly plan of action of the Forestry Services

Division of the Forestry Commission. This will ensure that the activities are budgeted for and implemented in their plan of operations

(iii) Incorporate the programme in the Ministry Food and agriculture and the District Assemblies so that the assembly can budget for it and also ensure that it is implemented. Already, the District Assemblies and the Unit Committees are enthusiastic in getting their areas benefit from the emerging carbon market. Therefore political support from the local government is high.

(iv) This project recognizes that building on sustainable, profitable and legal production of teak on farmlands is essential to efficiently prevent and/or monitor deforestation and degradation on farmlands. Already there are some established structures in some of the project communities that can be relied on to push ahead with the activities of project even after completion.

(v) FORIG will continue to use the area as a research site for long-term studies on teak tree timber value estimation and the forest carbon accounting, assessment and monitoring of land use changes, forest resources modelling and other relevant researchable issues.

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PART 4. IMPLEMENTATION ARRANGEMENTS 4.1 Organization structure and stakeholder involvement mechanisms

4.1.1. Executing agency and partners The Executing Agency of the Project will be the FORIG and the collaborating partners will be Forest Service Division of the Forestry Commission, School of Forest Sciences of University of Eastern Finland (UEF) and most importantly the local communities (Figure 4).

Figure 4: Organisational structure

4.1.2. Project management team Key project staff and their responsibilities will be: Dr. Lawrence Damnyag: (Project Coordinator, Forest Economics and Climate Change Policy specialist),

Forestry Research Institute of Ghana (FORIG). He is responsible for the design of the project; the execution and coordination of all aspects of the project; collection and collation of project reports for all participating scientists and community project teams. He will also take charge of all economics, timber and carbon valuations and related training of farmers of the project.

Dr. Luke Anglaare (Agroforester), FORIG. He will be take responsibility of all agro-forestry related

aspects in the project implementation

Mr. Francis Wilson Owusu (Wood Technologist). He will be responsible for wood grading and marketing strategies developmemt

Prof Ari Pappinen: (Forester and forest protection specialist), School of Forest Sciences of the University

of Eastern Finland (UEF). He will be responsible for organizing capacity building activities.

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Prof. Mark Appiah (Agro forester), School of Forest Sciences of the University of Eastern Finland (UEF).

He will be responsible for organizing capacity building activities Local representatives, responsible for representing small scale teak farmers in the local communities on

Monitoring and Evaluation Team 4.1.3. Project steering committee

The steering committee will have representatives from: Forestry Research Institute of Ghana (FORIG) Representative of the Ministry of Lands and Natural Resources Representative of District Assemblies Forestry Commission Representative of small-scale teak farmers in local communities Representative of Traditional Authorities Representative of NGO Representative of ITTO Representatives of donors The steering committee will meet once a year to review the project and provide guidance to ensure

successful implementation of the project. 4.1.4. Stakeholder involvement mechanisms

Stakeholders will be involved through participatory planning and implementation. Their role would include identification of financings schemes, marketing strategies, management of the small-holder teak plantation, identification and valuation of teak timber and carbon value, determination of incorporation of small holder teak plantation in Ghana’s REDD strategies development; determination of good governance and benefit sharing arrangements. Stakeholders at the local communities would play active role in the overall execution of field activities, especially teak carbon accounting and teak timber marketing. 4.2 Reporting, review, monitoring and evaluation The project coordinator will be responsible for the preparation of project process reports minimum four weeks before each ITTO monitoring visit and two months before ITTC sessions. (b) Project Completion Report The project coordinator will be responsible for the compilation of the project completion report and have it submitted to ITTO within three months of the project completion. (c) Project Technical Report Project technical reports will be prepared by project staff responsible for specific technical activities, peer reviewed by other project staff and submitted to ITTO by the project coordinator. All technical reports will be disseminated at the national, sub-regional as well as international level in order to share lessons learnt by this project with other actors in area of teak stands on farmlands. (d) Monitoring, Review and Steering Committee's visits ITTO monitoring visits will be carried out every 12 months, a total of 3 visits throughout the project cycle. An internal monitoring and self-evaluation for the project will be carried out .To do this, a monitoring committee of five (5) members made of three members selected by the community and two project team members in each project area. This team will be responsible for ensuring the successful execution of project in their respective areas and will required to submit progress on activities in their areas bi- yearly (before submission to progress report to ITTO) to the project coordinator . The results of the self-evaluation will be used in fine-tuning the activities foreseen for the rest of the project cycle. The project steering committee will meet once a year to discuss project technical details as well as to approve certain documents, such as the yearly plan of operations (YPO).

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4.3 Dissemination and mainstreaming of project learning 4.3.1. Dissemination of project results

Results of the project will be disseminated as follows:

(i) Final workshop will be held at the end of the project to disseminate the results of the project as well as agree on follow up actions.

(ii) Web site developed on the Internet to disseminate the results of each activity completed (iii) Scientific publications will be made in scientific journals. (iv) Media publications will also be made especially during the steering committee meeting

4.3.2. Mainstreaming project learning

Technical lessons learnt will be used for the development of overall national community based forest management strategy and help in scaling up to other communities which may be interested in establishing teak plantations their own farmlands and subsequently manage them. Technologies to be developed on small holder teak plantation carbon inventory and monitoring especially by local communities will be significant contribution in the development of methodologies for the realisation of REDD in other communities in Ghana and in other tropical countries in Africa. The methodology for financial valuation of teak timber before the trees reach legal size for exploitation and the carbon value estimation of these teak stands could be used by other communities and even nationally. Results and information on incorporating these smallholder teak plantations in the Ghana’s REDD strategies development and implementation would also be applied nationally.

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ANNEX 1. PROFILES OF THE EXECUTING AND COLLABORATING AGENCIES

Executing agency (FORIG) The Forestry Research Institute of Ghana is one of the 13 institutes of the Council for Scientific and Industrial Research (CSIR). It is located at Fumesua near Kumasi in the Ashanti Region of Ghana. It started as a research unit within the Forestry Department in 1962. It was fully established as a research institute and named FOREST PRODUCTS RESEARCH INSTITUTE (FPRI) under the then Ghana Academy of Sciences in 1964 and in 1968 placed under the Council for Scientific and Industrial Research (CSIR). By Act of Parliament (Act 405) the Institute was transferred from the CSIR to the Forestry Commission in 1980. In 1991, the name of the Institute was changed to Forestry Research Institute of Ghana to reflect the widening scope of its research activities. In 1993, by another Act of Parliament (Act 453) the Institute was reverted to the CSIR. The goals of FORIG are: Conduct user-focused research commissioned by its client Generate and disseminate useful scientific and appropriate technological information directly to its

clients, stakeholders and the general public in a timely manner. Anticipate and address the major research information needs that are likely to face managers, policy

makers, and stakeholders in the future, (i.e. develop capacity for quick response to changing circumstances)

Enhance its institutional capability through appropriate training programmes to address technical problems in forestry resources protection, sustainable management, and utilization.

Contribute, through research to the social, economic and environmental well-being of the people of Ghana

Enhance the sustainable management, conservation and efficient utilization of Ghana’s forest resources

Foster strong linkages, through collaborative research across disciplines among forestry professional, stakeholders and external institutions.

FORIG has the following objectives: Develop technologies for sustainable management of natural forests and biodiversity conservation Develop technologies fundamental to the success of plantation forestry. Generate technological

properties and develop appropriate processing techniques for the efficient utilization of Ghana’s forest resources

Enhance sustainable management and utilization of non-timber forest products (NTFPs) Mobilize, process and disseminate information critical to the management of Ghana’s forest

resources Strengthen capacity and use it for optimum research and commercialized services Establish mechanism for attracting financial assistance from donors, private and public institutions

for research Expertise: The Institute has specialists in Silviculture, Entomology, Forest botany, Forest ecology, Seed technology, Menstruation / Statistics, Genetics, Agro-forestry, Forest Ecomomics and Marketing and Information Science, GIS and Remote Sensing. Staff Strength: The Institute has total staff strength of 278 made up of 47 senior members 17 who have Ph.D degrees and the remaining with M.Sc degrees and 61 non-research senior officers. Facilities: The Institute's permanent offices and laboratories are located at Fumesua, near Kumasi. It has research centres at Bobiri and Amantia both in the Moist, Semi-Deciduous Forest Zone, Benso in the Wet Evergreen Zone, and Bolgatanga in the Savannah zone. There are also research stations at Subri, Afram Headwaters, Pra-Anum, Accra plains, Northern grassland, Bia Tano and Asenanyo.

Externally Funded Projects FORIG has won a number of competitive grants/donor supports for a wide variety of projects. Currently, there are over 10 donor-funded projects. These are in the areas of forest management, wood utilization and construction, sivliculture and management and entomology.

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Donors/sponsors are varied and range from bilateral support through to researcher support. Our donors include ITTO, DFID, AAS and the European Union. Below is the list of some on-going donor sponsored projects:

o Silviculture and Economics of Improved Natural Forest Management in Ghana o Processing and Utilization of Logging Residues through Collaboration with Local Communities and

Forest Industries o Development of an Integrated Strategy for Reduction of Shoot Borer Impact on African Mahogany in

the Tropical Humid Forest of Africa o Increasing Productivity and Quality of West African Teak Plantations using Genetic Diversity and

Sustainable Management o Rehabilitation of Mined Sites o Rehabilitation of Degraded Forests in the Savanna o Rehabilitation of Degraded Forests through Collaboration with Local Communities o Sustainable Development of Bamboo Resources in Ghana and Togo (AFORNET) o Genetic Improvement, Productivity and Biodiversity Conservation of T. scleroxylon (AFORNET) o Flower induction and mass productivity and biodiversity of T. scleroxylon using tissue culture

(TWAS) o Alternative mixed plantation systems and restoration strategies for conservation and sustainable

production of timber species in Ghana (ITTO) o Silvicultural strategies for mitigating shootborer impact on African Mahogany; Effect of pruning and

companion planting (IFS) Responding to the challenges and demands of national and global trends FORIG is an active member of prestigious international associations such as Commonwealth Forestry Association, International Union of Forestry Research Organizations (IUFRO) and International Union for the Conservation of Nature (IUCN). University of Eastern Finland (UEF) With approximately 15,000 students and 2,800 members of staff, the University of Eastern Finland (UEF) is one of the largest universities in Finland. The university has extensive international relations and it is involved in several international networks. The university’s teaching and research staff and students are active in participating in various mobility programmes. The University of Eastern Finland enjoys a leading national position in the field of forest sciences. The School of Forest Sciences of the University of Eastern Finland (UEF) research priorities among others are i) effects of climate change on forests; ii) Forest ecology and biodiversity; iii) Forest resource inventory and GIS; iv) economic evaluation of forest benefits; v) forest economy and marketing, vi) multi-objective and participatory forest planning. Since 2003, the UEF has worked in Ghana on two Academy of Finland- funded Projects (MAGERMA and RIFLAG) led by Professor Ari Pappinen and coordinated by Adjunct Professor Appiah in collaboration with FORIG. During these projects more than 30 scientific articles have been published, over ten MSc students have been trained and three PhD degrees earned. Also more than 20 forestry cooperatives is been established through modified Taungya system (MTS) and several seminars and workshops have been executed in the country. UEF has since improved collaboration to cover education and exchange of expertise under a newly developed Master of Science degree program titled “Bioeconomy and Natural Resources Management” hosted on FORIG campus and led by Prof. Pappinen. Short training courses on selected topics will follow. For this project (PD694/13 (M)), through Prof Pappinen , UEF will provide technical backstopping to the methodological design, data collection, analysis and education, training and capacity building activities and dissemination of project findings. The details of these technical issues already outlined in the proposal FSD of the Forestry Commission of Ghana The Forestry Services Division (FSD) forms a part of the Forestry Commission (FC) of Ghana. The functions of the FC-FSD are

Create, protect and manage the permanent forest estates and protected areas in the variousecological zones of the country to conserve Ghana’s biophysical heritage.

Prepare and implement integrated forest and wildlife management plans for the maintenance of the environment to the benefit of all segments of society.

Regulate the harvesting of timber, wildlife and other non-timber forest products. Vet and register contracts and issue permits for export of forest and wildlife products Track the movements of timber, wood and wildlife products. Monitor the harvesting and marketing of forest and wildlife products.

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Develop and enforce appropriate industrial standards and trade guidelines for timber and wildlifeproducts.

Promote value addition as well as increased use of lesser known timber and wildlife species toensure the optimization of utilization and benefits of forest and wildlife resources.

Provide market intelligence to inform both Government and industry on pricing, trade and producttrends.

Provide technical services in the development and utilization of forest and wildlife resources.

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ANNEX 2. RECOMMENDATION OF ITTO 46TH EXPERT PANEL PD 694/13 Rev.1 (M) Promoting Development of Teak Plantations on Farmlands to

Improve Quality, Marketing and Livelihood of Local Communities in Forest-Savannah Transition Zone (Ghana)

Assessment by the Forty-sixth Panel A) Overall Assessment

The Panel considered the modifications contained in the revised project proposal in response to the overall assessment and each of the specific recommendations made by the Forty-fifth Panel.

It is the opinion of the Panel that the revision made is satisfactory in respect of most of the specific recommendations including on the project title, relevant baseline information, project purpose, economic aspects, project outcomes, stakeholder analysis, problem analysis, logical framework matrix, silvicultural technologies, allocation of land, financing schemes, certification, project budget, and implementation arrangements.

However, the Panel was of the opinion that the revised map of the project is not much an improvement over the previous version while Section 2.1.1 is void of any issue and assessment of the adequacy of the existing institutional capacity and organizational set-up and resembles what should appropriately be presented under Part 4: Implementation Arrangements. The reformulation of the proposal into two parts is not adequately reflected by the inclusion of Specific Objective 2 in Figure 2 which requires appropriate description and explanation. The sub-section on dissemination of project findings under Section 3.2 has not been adequately strengthened particularly on the aspect of knowledge management. The presentation of the workplan can also be enhanced to improve its legibility. Although comprehensive, the presentation of master budget schedule can be improved in accordance with the format in Table 8 of the ITTO Manual.

B) Specific Recommendations

To further enhance the prop osal, the Panel recommended that it be further revised in accordance with the overall assessment above and the following specific recommendations:

1. Improve the project map;

2. Strengthen Section 2.1 of the proposal by including the issues and assessment of the

adequacy of the existing institutional capacity and organizational set-up;

3. Provide adequate description and explanation of the inclusion of Specific Objective 2 in Figure 2;

4. Strengthen the sub-section on dissemination of project findings under Section 3.2 with

an elaboration of the aspect on effective communication and knowledge management;

5. Refine the workplan to improve its legibility;

6. Present the master budget schedule in full accord with the format in Table 8 of the ITTO Manual;

7. Include an Annex which shows the overall assessment and recommendations of the 46th Panel and the respective modifications in tabular form. Modifications should also be highlighted (bold and underline) in the text.

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C) Conclusion

Category 1: The Panel concluded that the proposal could be commended to the Committee with incorporation of amendments.

Table Modification from original proposal Recommendation Modification Overall Assessment First , the modification has been done line by line

following the overall assessment 1. Improve the project map; Project map has been improved and inserted in the

project brief section 2. Strengthen Section 2.1 of the proposal by

including the issues and assessment of the adequacy of the existing institutional capacity and organizational set-up;

Section 2.1 has been improved with the inclusion of issues and assessment of adequacy of the existing institutional capacity and organizational set up

3. Provide adequate description and explanation of the inclusion of Specific Objective 2 in Figure 2;

This description and explanation has been provided in section 2.1.4

4. Strengthen the sub-section on dissemination of project findings under Section 3.2 with an elaboration of the aspect on effective communication and knowledge management;

Effective communication and knowledge management and how this will be employed to disseminate the results has been explained in detail (see section 3.2)

5. Refine the work plan to improve its legibility;

Work plan has been improved. See section 3.3

6. Present the master budget schedule in full accord with the format in Table 8 of the ITTO Manual;

Master budget schedule has been presented in full accord with the format in Table 8 of the ITTO Manual. The heading is highlighted in bold and underlined. See section 3.4.4

7. Include an Annex This annex is included. Modifications are highlighted and bolded in the text

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ANNEX 3. TASKS AND RESPONSIBILITIES OF KEY EXPERTS PROVIDED BY THE EXECUTING AGENCY

Responsibilities FORIG:

Will nominate project coordinator Submit all reports relevant to the project implementation Ensure smooth implementation of the project Facilitate writing of all publications including scientific papers Collaborate with others to ensure smooth running of the project

Forest Services Division:

Provide technical input and policy direction to management and marketing of teak plantation on farmlands

Facilitate in the identification of ecosystem services provided by the teak plantations on farmlands Contribute to the identification of the communities to take part in the project Liaise with local communities to ensure effective participation

UEF

Responsible for all training sessions, providing technical backstopping in terms of carbon assessment and timber value assessment methods

Contribute in preparing progress reports Small-scale teak farmers in local communities

Will be responsible for implementation of most of the field activities Curriculum vitae of Key staff: Lawrence DAMNYAG – Forest Sciences (Forest Economics and Climate change Policy Expert)

Dr. Lawrence Damnyag is a Research Scientist-(Forest Economics and Climate Change Policy Expert) at the Forestry Research Institute of Ghana. His expertise and relevant experiences include questionnaire design and data analysis, Rural households poverty-environment/forest analysis, Farm/environmental/forest resources valuation, Natural resources decision analysis and working with local communities on natural resources management. He has experience in the application of the following software for data and decision analysis; i) Eviews, ii) SPSS, iii) LIMDEP and v) DEFINITE

Date and place of birth and nationality: 04 July 1963 Ghana, Ghanaian Field and institution of graduation: Economics with statistics, University of Ghana, Legon, Ghana Field and institution of post-graduation: M.Phil Economics, specializing in Econometrics and

Environmental and Natural Resources Economics, PhD in Forest Economics and Policy, University of Eastern Finland, Joensuu, Finland

Luke Anglaaere – Agroforester

Dr. Luke Anglaaere is a Senior Research Scientist at the Forestry Research Institute of Ghana. He has expertise in Agroforestry and forest management. He has wide experience in community forestry, landuse dynamics as well as the design of agroforestry interventions.

Field and institution of graduation: BSc. Natural Resources Management, KNUST, Kumasi-Ghana Field and institution of post-graduation: M.Sc. Agroforestry, KNUST, Kumasi-Ghana; Ph. D.

Agroforestry, University of Wales, Bangor

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Francis Wilson OWUSU – Wood Technologist

Mr. Owusu is a Research Scientist at the Forestry Research Institute of Ghana with an expertise on sawing and machining of wood, Joinery & Furniture testing, lesser-used timber species, product development, monitoring and evaluation, Sawmill studies. Services to ITTO on ITTO-FORIG Project No. PD 179/91(Lesser-Used Timber Species) Services to ITTO on ITTO-FORIG Project No. PD 4/98 (Silviculture & Economics of Member, National Project Co-ordinating Team (NPCT) of ITTO/TEDD project PD13/95n Rev. 3(I), “Capacity Building in Training, Planning and Management of Forest Industries in ITTO Producer Member Countries”. Date and place of birth and nationality: 25 August 1963 Ghana, Ghanaian Field and institution of graduation: Agricultural Engineering, Kwame Nkrumah University of Science and Technology, Ghana Field and institution of post-graduation: M.Sc. Wood technology and Management, Kwame Nkrumah University of Science and Technology, Ghana

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REFERENCE Agidee, Y. (2011). Forest carbon in Ghana: spotlight on community resource management areas (CREMA). Katoomba Group’s Legal Initiative Country Study Series. Washington, DC: Forest Trends FAO, 2002. Hardwood plantations in Ghana. Forest plantations in Working paper 24. Forest Resources Development Service, Forest Resources Division. Rome FAO, 2009. Micro-finance and forest-based small scale enterprise. FAO Forestry Department, Rome FC, 2010. National Plantation Development Programme, Annual report 2010, Accra, Ghana Forestry Commission (FC) (2006b). Timber Resource Management Act 617 (Amendment) Acts 2002. Publications: laws & regulations of the Forestry Commission (FC) of Ghana Ministry of Lands, Forestry and Mines. Prepared by the Forestry Commission of Ghana in 2006 (Unpublished). Djagbeletey D.G., Adu-Bredu S. 2007. Adoption of agroforestry by small-scale teak farmers-the case of Nkoranza district. Ghana Journal of Forestry, Vol. 20&21 Diaz ,D., Hamilton, K.,Johnson, E. 2011. State of the forest carbon markets. Ecosystem Market place Insaidoo, F.G.T, Mirjam A.F. Ros-Tonen, Emmanuel Acheampong, E. 2012. On-Farm Tree Planting in Ghana’s High Forest Zone: The Need to Consider Carbon Payments Ministry of Lands, and Natural Resources (MLNR), 2012. Ghana Investment Plan for the Forest Investment Program (FIP). ttp://www.fcghana.org/assets/file/Programmes/Forest_Investment _Plan_fip/Ghana%20Draft%20FIP%203-5%20_31_august2012.pdf 23.4.2013 Nanang, D.M. 2012. Plantation forestry in Ghana: Theory and Applications. Nova Science Publishers. 288p Nsiah B. 2010. Contribution of Farm Forest Plantation Management to the Livelihood Strategies of Farm Households in the High Forest Zone of Ghana. Phd thesis, Dresden, Germany Boateng, I. 2008. The impact of agroforestry on the livelihood of rural farming households: A case study of selected communities in Offinso, Afegya Sekyere and Atwiwa districts. Msc thesis, KNUST, Faculty of Renewable Natural Resources, Department of Agroforestry, Kumasi Odoom, F.K. 1998 Hardwood plantations in Ghana. Case study for FAO project GCP/INT/628/UK Ball, J.B., Pandey, D., Hirai, S.1999. Global overview of teak plantation. Paper presented to the Regional Seminar Site, Technology and Productivity of Teak Plantations Chiang Mai, Thailand 26-29 January 1999 Insaidoo, T.F.G., Mirjam A.F. Ros-Tonenb, Emmanuel Acheampong, E., 2012. On-Farm Tree Planting in Ghana’s High Forest Zone: The Need to Consider Carbon Payments. Forthcoming in: Muradian, R. and L. Rival (Eds.) (2012) Governing the provision of ecosystem services. Heidelberg: Springer Schroeder, J-M., Oke, D.O., Onyekwelu, J.C., Yirdaw, E., Undated. Secondary forests in West Africa: a challenge and opportunity for management. In Regional examples of forest related challenges and opportunities, 335-353. Kollert, W., Cherubini, L. 2012. Teak resources and market assessment 2010. Planted forests and trees working paper series. Working paper P/47/EFAO, Rome, Italy Abeberese, M.O. 2002. Country paper: Ghana. Workshop on tropical secondary forest management in Africa: Reality and perspectives. Nairobi, Kenya, 9-13 December 2002.

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