The Ghana Forest Investment Program

The Government of Ghana was selected as a pilot country for the Forest Investment Program (FIP) under the Climate Investment Fund (CIF) in March 2010.

The Government of Ghana is committed to adopting an integrated approach to a long-term strategy for sustainable development that seeks to align the country’s climate change and economic competitiveness strategies.

The carbon mitigation component of the strategy focuses on addressing the underlying causes of deforestation and forest degradation which Ghana seeks to address through its Forest Investment Program (GFIP).

The Ghana Forest Investment Program has three priority areas namely, (1) mitigation actions related to forestry, (2) investment outside the forest sector and (3) institutional capacity including forest management and information. The FIP puts emphasis on the transformational role of the interventions by leveraging US$50million in grants and concessionary loans to implement projects that seek to mitigate effects of agricultural expansion in the high forest zone (HFZ) and adopting a climate smart agricultural models; addressing the timber supply gap in the domestic and regional markets through policy reforms, capacity building and plantations development; as well clarifying tree tenure and rights regimes, particularly in the off-reserve areas.

Our understanding is that this assignment – Implementing Project 1 “Securing and enhancing carbon stocks in natural forest resources through improved forest management” will initiate and facilitate steps towards transformational change in Ghana’s forest sector by promoting an integrated approach to develop, pilot and validate replicable and up-scalable models of participatory forest resource management in on- and off-reserve forest with the ultimate aim to reduce GHG emission and increase carbon stocks. The project will facilitate linkages with the Dedicated Grant Mechanism (DGM) to engage and promote community actions in the drive towards the implementation participatory forest management in Ghana. It is expected that project design will address the drivers of deforestation and forest degradation through policy interventions, pilot investments for improved forest landscape management, capacity building and communications and effective project management, monitoring and coordination.

In implementing this assignment Projects Abroad Consultancy will:

  1. Develop Project Preparatory Report (PPR) and Project Implementation Manual (PIM) for the Government of Ghana. These two documents will guide the implementation of Project 1: “Securing and enhancing carbon stocks in natural forest resources through improved forest management”. The PPR will elaborate the project design, a results based logical framework, activities and related outputs. The lead consultant will synthesize and integrate other reports from various consultancies under this project in the PPR. The other reports include, the Strategic Environmental and Social Assessment (SESA) report, the Monitoring, Reporting and Verification (MRV) baseline report, Biological, Carbon, Socio-economic and Governance surveys and the corridor feasibility study, Monitoring and Evaluation (M&E) frameworks and the communications strategy.
  2. Projects Abroad Consultancy will undertake project preparation and ensure that consultants maintain quality and timelines of their deliverables.
  3. Ensure project documents are consistent with the guidelines, transparency and safeguard requirements of the Bank as well as the FIP guidelines and procedures.
  4. Submission of monthly reports to brief and update MDBs.
  5. Recruit staff be based in Ghana to support the development of the PPR and project implementation.
  6. Provide general oversight for the implementation of the project

The transformational change development of the forest sector will be accompanied by a climate smart agricultural models and engagement of the private sector in a REDD+ investment program. To demonstrate how REDD+ can be applied at the country level, Ghana joined The Forest Carbon Partnership Facility (FCPF). By learning lessons from the early implementation phase the participating country will develop an understanding of what it means to become ready for REDD+.

We further understand that REDD+ in Ghana has the potential to contribute significantly to its carbon neutrality target. On the one hand timber stocks in existing forests could be enhanced and on the other hand – even more important – Ghana could make full use of the annually allowable cut under the condition of sustained yield and thus intensifying its nationwide wood use.

Until today the public sector is linked to REDD+ mainly as a driver of deforestation, either directly in land-use related sectors such as timber, agriculture, mining, energy and infrastructure, or indirectly when its operations involve commodity processing, distribution or finance. However, the challenge of implementing transformational change will not be overcome by public resources only. It is widely thought that the private sector will also be needed to provide the capital and expertise required to implement REDD+.

Therefore, Ghana intends to involve the Private Sector as:

(1) private owners of natural forests;

(2) providers of finance;

(3) buyers of environmental services;

(4) providers of technical services;

(5) local buyers of sustainably produced timber;

(6) providers of insurance for housing and buildings.

Although Ghana counts on several analyses that provide information for a better involvement of the private sector there is still an uncertainty as to how this could be done. The assignment will cast light to this question and initiate the first step towards the installation of the private sector as an active part in the REDD+ efforts of Ghana.

To achieve this objective:

(1) an analytical process will be used to investigate and/or assess the investment strategies in the Ghanaian context; the existing and potential financial regimes to be employed will depend to some extent also on the experiences of other countries FIP processes (e.g. Mexico and Brazil) in adopting policies and measures leading to change of practice, with a description of the economic models and institutional requirements.

(2) the stakeholders dialogue will be conducted based on the findings of the analysis in (1), above.

(3) possible REDD+ activities to augment the involvement of the private sector in key sectors such as timber production and timber transformation will be identified.