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World Bank Document Documentof The World Bank Public Disclosure Authorized Report No: 17879 PROJECT APPRAISAL DOCUMENT ONA PROPOSED ADAPTABLE PROGRAM CREDIT IN THE AMOUNT OF SDR 6.9 MILLION (US$9.3 MILLION EQUIVALENT) Public Disclosure Authorized AND GRANT FROM THE GLOBAL ENVIRONMENT FACILITY TRUST FUND IN THE AMOUNT OF SDR 6.5 MILLION (US$8.7 MILLION EQUIVALENT) TO THE REPUBLIC OF GHANA Public Disclosure Authorized FORA NATURAL RESOURCE MANAGEMENT PROJECT IN SUPPORT OF THE FIRST PHASE OF A NATURAL RESOURCE MANAGEMENT PROGRAM MAY 15, 1998 Public Disclosure Authorized Agriculture Group 3 Country Department 10 Africa Region CURRENCY EQUIVALENTS (ExchangeRate Effective April 1998) Currency Unit = Cedi Cedi = US$ 0.00045 US$1.00 = 2,200 FISCAL YEAR January 1 - December 31 ABBREVIATIONSAND ACRONYMS AAC Annual Allowable Cut AfDB African Development Bank APC Adaptable Program Credit APL Adaptable Prograrn Lending CAS CountryAssistance Strategy CFMU Collaborative Forest Management Unit CWMP Coastal Wetlands Management Project DANIDA Danish International DevelopmentAssociation DFID Department for International Development (UK) EA EnvironmentalAssessment EC European Commission EPA Environmental Protection Agency ERMP EnvironmentalResources Management Project FD Forestry Department FIMP Forestry Inventory Management Project FMSC Forest Management Support Center FPIB Forestry Products Inspection Bureau FRMP Forest Resource Management Project FSDP Forest Sector Development Project GEF Global EnvironmentalFacility GFS Ghana Forest Service GSBA Globally Significant Biodiversity Area IDA International DevelopmentAssociation IUCN World Conservation Union MEST Ministry of Environmnent,Science and Technology MLF Ministry of Lands and Forestry MLGRD Ministry of Local Government and Rural Development MME Ministry of Mines and Energy MOFA Ministry of Food and Agriculture NGO Non Government Organization NRMP Natural Resources Management Project PADP Protected Areas Development Program PCC Project CoordinationCommittee PCU Project CoordinationUnit PPMED Project Planning Monitoring and Evaluation Department TEDB Timber Export DevelopmentBoard TIDB Timber Industry Development Board WD Wildlife Department WFP World Food Program Vice President: Jean LouisSarbib CountryDirector: Peter Harrold SectorManager: Jean Paul Chausse Task TeamLeader: Robert Epworth GHANA NATURAL RESOURCE MANAGEMENT PROJECT CONTENTS A. Programand ProjectDevelopment and GlobalObjective ................................................... 1 1. Programdevelopment objective and key performanceindicators ................................. 1 2. Programglobal objective and key performanceindicators ............................................ 1 3. Project developmentobjective and key perforrnanceindicators ................................... 2 B. StrategicContext .................................................................. 2 1. Sector-relatedCAS goal supportedby the project......................................................... 2 2. GEF OperationalStrategy/Program objective addressed by the project........................ 2 3. Main sector issues and Governmentstrategy ................................................................. 2 4. Sector issuesto be addressedby the projectand strategicchoices ................................ 4 C. Programand ProjectDescription Summary .................................................................. 5 1. GhanaNatural ResourceManagement Program ............................................................. 5 2. Natural ResourceManagement Project I - Project Components.................................... 6 3. Key policy and institutionalreforms supportedby the project...................................... 8 4. Benefits and target population.................................................................. 8 5. Institutionaland implementationarrangements ............................................................. 9 D. Project Rationale .................................................................................. 11 1. Project alternativesconsidered and reasons for rejection............................................ I1 2. Major related projects financedby Bank, GEF and/or other developmentagencies ... 12 3. Lessonslearned and reflected in proposedproject design........................................... 13 4. Indicationsof borrower commitmentand ownership.................................................. 14 5. Value added of Bank and Global support in this project.............................................. 14 E. Summary Project Analyses................................................................ 15 1. Economic................................................................ 15 2. Financial................................................................ 16 3. Technical................................................................ 16 4. Institutional.................... 17 5 Socal......... ......................... ......................................................................... 5. Social.. 17 6. Environmentalassessment ..................... 18 7. Participatoryapproach ..................... 19 ~~~~~~~. SutiaiiyadRss....................................................................................... 19 F. Sustainabilityand Risks..19 1. Sustainability.19 2. Critical risks.20 3. Possiblecontroversial aspects ..................... 21 -1 - G. Main Loan Conditions........................ 21 1. Effectivenessconditions ........................ 21 2. Other........................ 21 H. Readinessfor Implementation........................ 21 I. Compliancewith BankPolicies ........................ 21 Annexes Annex 1. Project Design Summary.23 Annex 2. DetailedProject Description.33 Annex 3. EstimatedProject Costs.50 Annex 4(a) Financialand EconomicAnalysis .52 Annex 4(b) IncrementalCost Analysis- BiodiversityConservatiorL .62 Annex 5. Financial Summary.65 Annex 6. Procurementand DisbursementArrangements .66 Table A. Project Costs by ProcurementArrangements - IDA.69 Table A(i) Project Costs by ProcurementArrangements - GEF.69 Table B. Thresholdsfor ProcurementMethods and Prior Review.69 Table C. Allocationof Credit Proceeds - IDA.70 Table C(i) Allocationof GrantProceeds - GEF.70 Annex 7. Project ProcessingBudget and Schedule.71 Annex 8. Documentsin Project File.72 Annex 9. Statementof Loans and Credits.73 Annex 10. Countryat a Glance.74 Annex 11. SocialAnalysis and ParticipatoryApproach .76 Annex 12. Statementof DevelopmentPolicy .78 MAP IBRD No. 29270 GHANA Natural Resource Management Project I Project Appraisal Document Date: 05/15/98 Task Manager: RobertEpworth Project ID: GH-PE-946 Sector: Rural Development Program Objective Cat.: Env. SustainDev./Poverty Allev. GEF Supplement ID: GH-GE-45188 Focal Area: Biodiversity/NaturalResource Management Lending Instrument: AdaptableProgram Credit Program of Targeted Intervention: [] Yes [/] No + GEF Grant ProgramFinancing Data (US$ million) TotalCost IDA GEF Cofinanciers GOG NRMP1 (1999-2000) 25.7 9.3 2.1 12.1 2.2 NRMP 11(2001-2004) 37.0 10.7 6.6 12.7 7.0 NRMPIII1(2005-2008) . 27.3 10.0 - 11.8 5.5 ProgramCost 90.0 30.0 8.7 36 ProjectFinancing Data [ ] Loan [x] Credit [] Guarantee [x] Grant [ ] Other[Specify] Amount: US$9.3million/SDR 6.9 million (IDA) and US$8.7million/SDR 6.5 million (GEF) Proposed terms: [x] Multicurrency [] Singlecurrency, specify Graceperiod (years): 10 [] StandardVariable [] Fixed [] LIBOR-based Years to maturity: 40 Commitment fee: 0.5% Service charge: 0.75% Financing plan (US$ million): Source Local Foreign Total Government 2.2 - 2.2 IDA 6.4 2.9 9.3 GEFI 1.5 0.6 2.1 Cofinanciers2 8.1 4.0 12.1 Total 18.2 7.5 25.7 Borrower: Republic of Ghana Responsible agencies: Ministries of: Lands and Forestry; Food and Agriculture; and Environment, Science and Technology Estimated Disbursements (US$ million): NRMIP-I NRMP-II 1999 2000 2001 2002 2003 2004 IDA Annual 4.1 5.2 Cumulative 4.1 9.3 GEF Annual 1.0 1.1 1.9 1.7 1.6 1.4 .Uf .W i C......... ..............................................;WW... Cumulative.............................................. 9..................1.0 ..... 2.1 ...............................................I.......................4.0 5.7 ............................ 7.3 8.7 GEF would approve funding for a six-year project, covering the first and second phases of the program (NRMP I and NRMP II), with a caveat in the legal documents to allow for the suspension of GEF disbursements in the event that IDA does not proceed with the funding of NRMP II. I GEF: First two years of six-year US$8.7 million program (see Section C: Biodiversity Conservation). 2 Cofinanciers: Apart from the DFID program of US$6.8 million, other donor prograns during the frst two-year phase are not yet fnalized, but based on ongoing discussions are estimated as follows: Danida US$1.2 million; AfDB US$0.8 million; EU US$1.4 million; Netherlands US$1.8 million; and WFPUS$0.3 million. A. PROGRAM AND PROJECT DEVELOPMENT OBJECTIVES 1. Program developmentobjective and key performance indicators(see Annex 1) The developmentobjective of the Natural ResourceManagement Program (NRMP) is to protect, rehabilitate and sustainably manage national land, forest and wildlife resources and to sustainably increasethe incomeof rural communitieswho own these resources. Progress would be measuredby: (i) improvementin the policy and regulatoryenvironment for high forest managementand timber industry development;(ii) enhancedlocal communityinvolvement in managementof the high forest and savanna woodlandzones and improvedflow
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