Implementing Agency:
Department For International Development (WNAD)

Managing Institute:
Department For International Development (WNAD)

Contractor:
Technical Cooperation Officer

Project Code: 025-502-009 025-502-011	Start Date: 01-Jul-93	End Date: 01-Mar-94
Commitment: £691,000	Status: Completed	Type of Funding: Bilateral - TC

Project Background:
The Forestry Department established approximately 50,000 hectares of plantations during the late 1960s and early 1970s. There has been little management since then and only about one third of the area planted has any real commercial potential. Significant areas of failed plantations and other cleared areas exist in forest reserves where new plantations could be established. The Forestry Department does not have the funds to maintain or expand the plantation estate and it lacks the commercial capacity to harvest and market the products in the most cost-effective manner.

Several timber companies and the CDC have expressed interest in investment in plantations in Ghana. A pre-feasibility study based on the strategy paper was conducted in July 1993. This study proposed the creation of a company that would plant a minimum of 9,000 hectares of teak and take over up to 4,000 hectares of existing Forestry Department plantations. The investment needed is approximately £7 million over ten years. CEC would provide equity and loan finance and the Forestry Department would provide the existing plantations in exchange for equity.

Project Objectives:
The objective of the project is to create opportunities for investment and community participation in plantation activities.

Intended Outputs:
Project design accepted and written agreement in principle to proceed given by November 1994.

Project designed and appraised by the end of July 1994.

1:20,000 scale aerial photography covering approximately 260,000 hectares of the project area by end of April 1994.

Land use and forest boundary maps with time series interpretation prepared using satellite imagery by end of April 1994.

All potential plantation land within forest reserves in the project area identified and mapped at 1:10,000 scale by end of May 1994.

Reconnaissance soil survey of all potential plantation areas completed by end of June 1994.

Existing teak plantations within the project area mapped at 1:10,000 scale, inventory validated and growth models prepared by end of June 1994.

Environmental impact assessment conducted and mediation plan approved by the EPC by end of June 1994.

Domestic timber market study conducted by end of May 1994.

Socio-economic investigations in the project area completed and preliminary recommendations made by June 1994.