INVEST IN - AGRIBUSINESS Kpong Left Bank Irrigation Project Infopack

June 2021 KLBIP INFOPACK

Content 1. GHANA selected country indicators 2. GHANA’s agriculture sector 3. GHANA’s support for irrigation 4. Kpong Left Bank Irrigation Project (KLBIP) 5. Brief historical background The Kpong Left Bank Irrigation 6. Biophysical context Project’s (KLBIP) objective is to 7. Demography and social infrastructure effectively manage the 8. Pre-rehabilitation irrigation system rehabilitated 1,800ha gravity 9. Pre-rehabilitation farming activities scheme through efficient 10. Geology, soils and crop suitability operation, management and 11. Geology, soils and crop suitability maintenance of irrigation 12. GCAP’s intervention at KLBIP facilities and the introduction 13. Progress of rehabilitation works photographs of inclusive commercial 14. Modernization and sustainability of the scheme agribusiness models 15. Potential cropping pattern and calendar 16. Expected project benefits 17. Investment opportunities at KLBIP 18. Production level opportunities application procedure 19. Policy environment and incentives for investors 20. Frequently Asked Questions (FAQs) KLBIP INFOPACK

1. GHANA selected country indicators

• Ghana’s economy has demonstrated strong resilience in recent years as evidenced by the performance of the key macroeconomic indicators • Overall real GDP grew at an average of 6.8 % during last three years (2017 – 2019) • GDP per capita at 1 885 USD (at constant 2010 USD) • Inflation is down to around 10%

• Total population is around 30 million with demographic growth of (second quarter data) 2.2% per annum • 57% of the population is under the age of 25 • The population has witnessed not only rapid growth but also rapid urbanization with over 55% living in cities • The key export sectors are Gold, Oil and Cocoa • Ghana is ranked 118 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings (2020)

Sources: Government of Ghana, World Bank – Doing Business 2020, Oxford Business Group - Ghana Report (2020), TradingEconomics.com KLBIP INFOPACK

2. GHANA’s agriculture sector

• Ghana’s third major area of economic activity is agriculture, which accounts for 20% of GDP and employs nearly half of the country’s workforce, most of whom are smallholders. • Ghana is a net food importer, thus improving agricultural efficiency has been strategic priority for Ghana starting with the Food and Agriculture Sector Development Policy in 2007 and continuing today with the Planting for Food and Jobs initiative, launched in 2017 and followed in 2018 by the umbrella programme Investing for Food and Jobs (IFJ). • The principal types of agricultural produce in Ghana are classified into four sub-sector

CROPS SUB-SECTOR LIVESTOCK SUB-SECTOR

• INDUSTRIAL CROPS: cocoa, oil palm, • Poultry such as chicken, turkey and duck, coconut, coffee, cotton, kola, rubber, ruminants such as cattle, sheep and goats Production of major cashew, shea and soy bean and non ruminants such as pigs staple foods 2018 ('000 T) • STARCHY STAPLES, CEREALS AND LEGUMES: cassava, cocoyam, yam, plantain, maize, FISHERIES SUB-SECTOR rice, millet, sorghum, cowpea and 21000 • Marine, inland and aquaculture groundnut

• FRUITS AND VEGETABLES: pineapple, citrus, FORESTRY AND LOGGING SUB-SECTOR banana, pawpaw, mango, tomato, pepper, 4700 okra, eggplant, onion, butternut squash, • Mainly air dried timber from Teak, 2300 1500 770 CASSAVA PLANTAIN MAIZE COCOYAM RICE Asian vegetables Rosewood and various indigenous species PADDY KLBIP INFOPACK

3. GHANA’s support for irrigation Public Irrigation schemes in operation (2020) No Irrigation Scheme Region Area (Ha) Type* • The one Village, One Dam (1V1D) 1 Weta Volta 880 G initiative is the government’s main 2 Dordoekope Volta 110 P effort to reduce dependence on 3 Aveyime Volta 60 P & G natural rainfall and allow for year- 4 Kayime Volta 27 G round farming. 5 Kornorkle Volta 30 G 6 Kpoglu Volta 65 G • The 1V1D initiative objective is to 7 Ayitekope Volta 20 G provide small-scale irrigation to 8 Mankessim Central 17 P communities in the North. 9 Okyereko Central 81 P & G 10 Sata Ashanti 34 G 11 AnumValley Ashanti 89 G&P • Public investments in rehabilitation of major irrigation 12 Akumadan Ashanti 130 p schemes including TONO, KPONG IRRIGATION SCHEME & 13 Bontanga Northern 450 G KPONG LEFT BANK IRRIGATION PROJECT. 14 Golinga Northern 40 G 15 Libga Northern 16 G • Irrigation Water Users Association Regulation (IWUAR), 16 Tono Upper East 2,490 G&P L.I. 2230, has been passed and became effective in 2016. 17 Vea Upper East 850 G These Water Users Associations (WUAs) are expected to 18 Goog Upper East 100 G support in sustainable Operations and Maintenance of 19 Baare Upper East 12 G the Schemes. 20 Weisi Upper East 63 G 21 Guo Upper West 16 G • Institutional restructuring of GIDA and ICOUR to 22 Piiyire Upper West 20 G reposition them to effectively regulate and manage 23 Karni Upper West 40 G irrigation schemes in Ghana respectively to ensure 24 Kpong Irrigation Scheme Volta 2,786 G sustainability of rehabilitations 25 Weija Greater Accra 220 G 26 Dawhenya Greater Accra 187 P & G 27 Ashaiman Greater Accra 155 G 28 Angorsikope Greater Accra 110 P & G TOTAL developed: 9,098 (*) Type: [G] – Gravity / [P] - Pump KLBIP INFOPACK

4. Kpong Left Bank Irrigation Projet (KLBIP)

Location of the project

• The project is located on the left bank of the Volta River downstream of the Kpong Hydroelectric Dam at Akuse. Administratively, it falls within the North of the . The project area was acquired by the Government of Ghana through an Executive Instrument, EI 162 in 1975.

• Geographically, it lies between latitudes 6° 05.5′ North and 6° 09′ North, and longitudes 0°07′ East and 0°13′ East. Administratively, it falls within the jurisdiction of the North Tongu District of the Volta Region. Its digital postal address is VT-2044-5973.

• The area is bounded by the Juapong-Torgorme feeder road and Gblor drain to the west, the Volta River to the south and the Alabo River to the east. Farms operated by Vegpro Ghana Limited and natural uplands make up the boundary in the north.

KLBIP KLBIP INFOPACK

5. Brief historical background

Kpong dam is completed and gravity canal to irrigate 340 ha in Design and construction with the north-west corner of the 75% of scope of works project area is provided completed at the end of the MiDA programme Following completion of the Akosombo Dam, pilot Design studies completed GCAP formally restructured development at Asutsuare but draft proposal not and contracts awarded for the on the right bank 30km implemented due to high rehabilitation, modernisation downstream of the dam costs and insufficient and extension of the KLBIP economic returns

1962 2011 To 1975 1982 1983 1986 2009 to 2013 2015 2015 2021 1975 2012

Design and The Government of Ghana Feasibility study for 2000 Rehabilitation works acquires full ownership of ha along the left bank started over 8000 ha of land on the under funding from the left bank of the Volta Millennium Challenge opposite Akuse. Corporation Rehabilitation works Feasibility study Completion of works for to be completed by completed, identifying a a gross area of 45O ha September, 2021 potential gross irrigable under funding support area of 3545 ha on the left from EDAIF bank KLBIP INFOPACK

• The area is exposed to southwesterly winds which 6. Biophysical context bring rains during the period April to November. There are two rainfall peaks, the first in May-June • The project area falls within the Coastal Savanna (165-195mm) and the second in October – November Equatorial Climatic Zone with relatively low rainfall and (100-135mm) high temperature regime. The mean yearly rainfall for • During the major dry months of December to March, fifteen (15) consecutive years (2001 – 2015) was 961.5 the desiccating Harmattan winds from the Sahara mm. Desert regions blow across the area bringing dryness • Temperatures are high and even throughout the year. The and reducing visibility. mean yearly minimum temperature was 23.6 0C while the • The relative humidity in the project area is high. mean yearly maximum temperature for the same period Mean daily values range from 68% to 84%, with was 33.6 0C. In general, the days are hot during the dry maximum humidity in the months of June, July and seasons (December to March). August.

Average Meteorological Data from Akuse Station, available through the Ghana Meteorological Agency

Annual Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec mean

Mean Temperature (°C) 29 29 29 29 28 27 26 26 27 27 27 27 27.4

Mean Rainfall (mm) 22 44 101 129 161 195 69 40 100 134 104 39 94.8

Mean Humidity (%) 71 68 71 74 76 80 80 77 76 78 78 69 74.8

Mean Wind Speed (km/day) 112 138 156 104 130 86 130 147 121 86 78 69 113.1

Mean Sunshine Duration (hrs) 6.5 6.9 6.5 6.3 6.3 4.9 4.4 4.7 5 6.5 7.5 7.0 5.51 KLBIP INFOPACK

7. Demography and social infrastructure

Demography Energy and power Being close to the Kpong Hydroelectric Dam, the The project area is falls within the catchment of communities and other commercial farms eleven (11) communities with estimated total within the KLBIP catchment area have access to population of 6,093. More than half of the electricity. Firewood and charcoal are however population are women (52.1%). used for cooking by most communities.

Communications Sanitation and water Mobile communication is the most available and Four communities within the project area have effective means of communication within the access to pipe borne water (Nakpoe, Essokope, project area. Internet services are also available Fulakope and Adzimakope while the others rely as all major telecommunication companies have on boreholes, the Nyifla lake and some their presence in the area. rivers/streams within the area.

Transportation Health Facilities Road infrastructure in the area is quite There are twelve (12) health facilities spread developed and the main roads are mostly across the district. The only hospital – asphalted. The poor farm access roads within Catholic Mission Hospital – is located in the the scheme are currently being rehabilitate as district capital. The other health facilities include part of GCAP’s rehabilitation and modernization 6 Health Centres, 3 Community-based Health of the KLBIP Planning and Services (CHPS) Centres and 1 private clinic. The Akuse Government Hospital is the nearest health facilities 5km away. KLBIP INFOPACK

Market Centres Farmers in the project area sell their produce at local markets, although most of the commercial agribusinesses within the area produce for the export market. Some of the major market centres include Kpong, Atimpoku and Juapong markets.

Education The North Tongu District where the project falls, has various educational facilities, comprising 5 Senior High Schools (SHS), 53 Junior High Schools (JHS), 119 primary schools and 79 pre-schools. According to the 2010 Population and Housing Census, 26.5% have never attended school. Out of the population of persons 3 years and older, who are currently in school, 49% are in primary school, while 19.8% are in Junior High School

Income generating activities The local economy of the North Tongu District which includes the KLBIP area is agrarian with more than half (57.2%) of the employed population engaged in agriculture, forestry and fishery, whiles 15.3% are involved in sales and services. Wholesale, retail, repair of motor vehicles and motorcycles accounts for 12.9% of the employed, with manufacturing making up 10%. KLBIP INFOPACK

8. Pre-rehabilitation irrigation system • The existing gravity irrigation system in the project area commands a gross area of 450 ha. It comprises of a lined supply canal off-taking from a gated irrigation outlet provided in the left-wing embankment of the Kpong Dam. o Main Canal 1 (MC-1) has an existing length of 3,369m with four secondary canals branching from it. o Main Canal 2 (MC-2) has an existing length of 4,430m with six secondary canals branching from it. o The existing drainage system comprises of catch drains running parallel to the Supply Canal and MC- 1, and various drains within the scheme command. • The pre-rehabilitation irrigation scheme was non-functional due to several challenges. Only a part of the command area was being cultivated by some farmers who were pumping water from the main canals • A technical review of the existing irrigation system has revealed that full supply levels of existing canals are lower than those required to command the 450ha project area by gravity flow. • It was concluded that achieving correct full supply levels requires major re-modelling of existing canals and regulating structures. KLBIP INFOPACK

9. Pre-rehabilitation farming activities • The average farm size per farm family in the project area was Crops grown, average yields and production just over 2 ha. Total area Average Total • Since the existing irrigation scheme in the project area was not (ha) yield (T/ha) production operational, most crops were grown under rain-fed conditions Rice 25,9 4,6 119 • Under the pre-rehabilitation cropping pattern, land preparation Maize 26,6 2,4 64 for rice would begin in the month of February. At this time of Cassava 16,8 8,5 142 year, heavy clayey soils are usually dry and difficult to plough and harrow to a fine tilth. The paddy crop would be later Cowpea 1,6 1,9 3 harvested in July, while maize in August. This was also Pepper 10,74 5,1 55 problematic, since the high relative humidity during these Okra 1,54 9,4 14 months would make drying of maize and paddy difficult and cause produce to go moldy. Cabbage 0,1 4,5 0 Tomato 1,24 3,6 4 • Some farmers practiced yearly crop rotation while others do not. Examples of crop rotations were maize- pepper, maize-okra Lettuce 0,1 5,6 1 and cassava-maize. 84,57 • Livestock population amongst the farmers was low, thus obtaining farm-yard manure to improve soil fertility was difficult. KLBIP INFOPACK

10. Geology, soils and crop suitability

• The project area is almost entirely underlain Crop suitability analysis shows : by metamorphosed basic rocks which are classified as Dahomeyan garnetiferous • Soils of Akuse (69ha) and Amo hornblende orthogneiss. These rocks locally (796ha) Series are both currently moderately contain small amounts of pyroxenite and suitable for rice cultivation. The limitation in more rarely of quartz both cases is wetness (w) reflected in the drainage condition • The floodplain deposits along the intermittent streams of the area consist of • Soils of the Amo series are moderately suitable alluvia which the streams have transported for all crops evaluated*. The only limitation from the higher catchment areas. Toward the posed to crop growth arises due to imperfect Kpong Lake, these sediments are mixed with drainage conditions alluvium deposited by the Volta River. These • Soils of the Hake series (580ha) are also various alluvia are mostly clayey and silty but moderately suitable for all crops evaluated, the appear generally to be underlain by a bed of major limitation being topography (these soils well-rounded quartz pebbles which occur at occur on land slopes of 2 to 3%) various depths. • Soils of the Tefle series (555ha), are marginally • Soils in the KLBIP area consist mainly of Akus suitable for all crops evaluated. The major series (Calcic Vetisol); Amo series (Eutric limitation is poor drainage conditions, which Cambisol); Hake series (Dystric Cambisol); could limit oxygen availability to crops. Tefle series (Eutric Gleysol)

(*) Crops evaluated include: rice, maize, soya bean, okra, pepper, french bean, cucumber, cowpea, carrot, sweet potato, watermelon, cabbage, lettuce, butternut squash KLBIP INFOPACK

11. Geology, soils and crop suitability

Detailed soil map and profiles available in the Final Feasibility Report (WAPCOS , 2017) Annex II KLBIP INFOPACK

12. GCAP’s intervention at KLBIP

GCAP is rehabilitating, modernizing and expanding the existing gravity scheme to approximately 1,800ha. In addition, it will provide irrigation water to approximately Objectives and advancement of principal 1,500ha of farmland outside the gravity command area rehabilitation and extension works through pumping, bringing the total irrigable land at Before After Rehabilitated New work KLBIP to 3,300ha. Items Outstanding rehabilitation rehabilitation done till date done till date

Scheme rehabilitation 1 800 ha Irrigable command area 450 ha • Rehabilitation of the existing gravity irrigation of (gravity) Irrigable out of 450ha 0 ha 1 500 ha command area • Expansion of area under gravity irrigation to 1,800ha; CANALS (length in m) • Providing sumps to enable pumped irrigation schemes - Supply canals 3 535 3 535 3 535 0 to cover 1,500ha outside of command area - Main canals 7 799 16 310 7 799 11 040 -2 529 • Rehabilitation of existing concrete lined irrigation - Secondary / tertiary 5 968 12 682 1 295 12 043 -656 canals and earth drains; - Laterals (farm ditches) 0 120 592 53 753 66 839 • Construction of new concrete lined irrigation canals ROADS (length in km) and earth drains as extension to the existing ones; - Village roads 17,95 9,45 8,50 - Inspection road 35,56 21,84 13,72 • Farm-land development (land clearing & de-stumping, levelling, bunding); - Inspection path 35,56 24,31 11,25 - Farm roads 59,72 29,35 30,37 • Rehabilitation of farm access and community linkage roads; KLBIP INFOPACK

13. Progress of rehabilitation works photographs

Rehabilitated supply canals New main canals

Automation for gates control Automation for gates control KLBIP INFOPACK

14. Modernization and sustainability of the scheme

Scheme modernization works The current works include installation of the state-of–the–art instrumentation and automation for gates control, monitoring and measurement of flows. Under this system, farmers will be billed based on the volume of water they use to ensure efficient usage and management of the water resource. A billing system would be used based on the volume of water consumed by the Water Users Associations.

Scheme sustainability • To ensure sustainability of the scheme, private participation in the scheme management will be encouraged. In the light of this, private firm(s) could be contracted to jointly manage the scheme with Water Users Association (WUA) in line with LI 2230 (2016). • Government is already in the process of establishing an efficient Scheme Management Entity (SME) to effectively operate, maintain and manage the scheme together with relevant stakeholders such as MoFA, GIDA and the Lands Commission. • Investors interested in managing the Scheme as Scheme Management Entities should endeavour to provide further details in their final proposals. KLBIP INFOPACK

15. Potential cropping pattern and calendar Following cropping pattern and production calendar were developed, based on land availability, soil suitability, potential yields and producer preferences. However, consistent with the overall MoFA policy objective, priority should be given to production of food security crops on the scheme.

Total area Average Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec (ha) yield (T/ha) production

Rice 1,420 ha (71%) 1,420 ha (71%) 2,840 6.5 18 460

Maize 300 ha (15%) 170 ha (8.5%) 470 6.0 2 820

Soya 220 ha (11%) 230 ha (11.5%) 450 2.5 1 125

Cowpea 20 ha (1%) 20 2.5 50

Pepper 20 ha (1%) 50 ha (2.5%) 70 25.0 1 750

Okra 20 ha (1%) 20 ha (1%) 40 15.0 600

Cabbage 30 ha (1,5%) 30 25 750

Water melon 30 ha (1,5%) 30 21.5 645

Butternut 50 ha (2,5%) 50 20 1 000 Annual cropped Area (ha) 4,000 Seasonnaly cropped Area (ha) 2,000 Cropping intensity (%) 200% KLBIP INFOPACK

16. Expected project benefits

Direct and indirect job creation Better adaptation to climate change An estimated 12,000 direct jobs per year will The completion of the irrigation scheme will be created when the irrigation scheme imply farmers will no longer rely on rainfall becomes operational. The labor force will for their agricultural activities. This provides acquire knowledge, skills and expertise in a better climate change adaption given the operation of irrigation systems and general global uncertainties in rainfall pattern. farming

Improved standard of living Improvement in rural economy The KLBIP will bring better remuneration to The completion of KLBIP will make the area the rural folks and thereby enhance their vibrant and open-up the place for business. living standards. For instance, direct farm Service suppliers such as input dealers, agro income per year after completion of the processors, and transport, mechanization project is expected to increase from the and telecommunication services are likely to current GHS1,653/ha to GHS14,253/ha. capitalize on the opportunities in the area to do business. This may lead to better health facilities, roads, and water and sanitation Improvement in crop intensity services in the area. After rehabilitation, the total area (3,300ha) could be cultivated at least twice each year. This gives a cropping intensity of 200%, thereby guaranteeing increased food security and income to farmers and agribusinesses KLBIP INFOPACK

17. Investment opportunities at KLBIP

Tono agribusiness investment opportunities (8/12) Value chain investment Partnering for joint management 7. Main valuopportunitiese chain investment opportunities of the scheme

AGGREGATION PROCESSING AND MECHANISATION PRODUCTION AND LOGISTICS MARKETING • Medium and large • Mechanisation • Aggregation/ • Agro-industrial commercial farming service provision storage service processing and with out grower provision distribution SPECIFIC VALUE CHAIN program SPECIFIC VALUE CHAIN SPECIFIC VALUE CHAIN SEGMENT INVESTMENTS SEGMENT INVESTMENTS SEGMENT INVESTMENTS (ex.SP production)ECIFIC (ex.S agregation)PECIFIC (ex.S distribution)PECIFIC PARTIALLY INTEGRATED PARTIALLY INTEGRATED

FULLY INTEGRATED INVESTMENT PROJECTS KLBIP INFOPACK

18. Production level opportunities application procedure

Accessing portions of the available 2000ha Interested agribusiness investors can acquire portions of the available 1800ha to cultivate cereals (rice/maize/soya), legumes and vegetables through a commercially driven approach*. Investors required to pitch for land in minimum sizes depending on the type of crop and the scale of investments. • Minimum size for rice is 100ha • Minimum size for vegetables is 10ha (*) GCAP would share the soil analysis report however selected investors will be required to carry out further detailed soil analysis.

Procedures for application Selection process would involve the following: • A request for Expression of Interest (already completed) • Investor Conference to provide further and detailed information on the Scheme for investors (Scheduled 23rd June, 2021) • Submission of proposal based on a Business and Investment ( Friday, 9th July, 2021) • The applications will be evaluated based on criteria that will be specified in the RFP • Special consideration will be awarded to proposals focusing on food security crops (rice and vegetables) and on inclusive investments projects • Contracts signed with qualified investors KLBIP INFOPACK

19. Policy environment and incentives for agribusiness investors

Main policies supporting the development of agricultural sector are: • The Food and Agriculture Sector Development Policy (FASDEP II) is developed as a Policy of the Government of Ghana to guide development and interventions in the agriculture sector. • The umbrella programme Investing for Food and Jobs (IFJ) is a medium term plan aimed to transform the agricultural sector through Government investing at least 10% of the national budget into agriculture • The innovative flagship programmes of the Government include the Planting for Food and Jobs, Planting for Export and Rural Development (PERD), Rearing for Food and Jobs (RFJ), One-District-One Factory, One-District- One-Warehouse, Greenhouse Villages and agricultural mechanisation Main incentives for private sector investment in the agribusiness sector include: • Concessionary tax rates (1 – 10% income tax up to 5 years)

• Exemptions for VAT for agricultural raw materials

• Five-year tax holiday for agro-processing businesses, from the date of commencement of business

• Custom duty exemptions for agricultural and industrial machinery and equipment

• Support for mechanization services and land development

• Promotion of affordable financing KLBIP INFOPACK

20. Frequently Asked Questions (FAQs)

Where is the project located? • The Kpong Left Bank Irrigation Project (KLBIP) is located at Torgome, on the left bank of the Volta River downstream of the Kpong Hydroelectric Dam at Akuse, about two and half hour drive from Accra. Administratively, it falls within the North Tongu District of the Volta Region. Digital address is VT-2044- 5973. What is the objective of the project? • To effectively manage the rehabilitated 1,800ha gravity scheme through efficient operation, management and maintenance of irrigation facilities, and the introduction of inclusive commercial agribusiness models. What type of irrigation system is available? • GCAP is rehabilitating, modernizing and expanding the existing gravity scheme to approximately 1,800ha. In addition, it will provide irrigation water to approximately 1,500ha of farmland outside the gravity command area through pumping, bringing the total irrigable land at KLBIP to 3,300ha. What is the land area available for production and what crops are suitable? • The available area within the scheme is 1,800ha. The suitable crops are: • Cereals – Rice, Maize (seed maize, yellow maize, baby corn) • Vegetables –Pepper, Okra, Cabbage, Butternut squash, etc. KLBIP INFOPACK

21. Frequently Asked Questions (FAQs)

What is are the investment opportunities on the project? Production Level Opportunities • Where investors can acquire portions of the available 1,800 to produce crops through a commercially driven approach. Minimum size for rice and other cereals is 100ha while vegetable is 10ha. Value Chain Services Opportunities • Provide agricultural value chain support services as result of increased economic activity on the scheme. These support services include; • Farm input services, • Mechanization support services, • Produce handling and processing (warehousing, pack-houses, drying floors) • Transport/haulage services, • Marketing, etc. Scheme Management Opportunity • Firms interested in management of the scheme as Scheme Management Entities with the responsibility of Operating, Maintenance and Management (OMM) of the KLBIP are requested to formally apply.