Ghana - Sawmill residues utilization study (Vol. 2 of 2) : Annexes

Joint UNDP/World Bank Energy Sector Management Assistance Pr-ogram - Activity Completion Report No. 074B/87 Country: GHANA Activity: SAWmILL RESIDUES UTILIZATION STUDY. (VOLUME II - ANNEXES) OCTOBER 1988 Report of the loint UNDP/Woud Bank Energy Sector Management Assistance Program This document has a restricted distribution. Its contents may not be disdosed without authorization from the Government, the UNDP or the World Bank.  MENEGY SECTORMIANACEWENT ASSISTANCE PROGRAM PURP0SE The -Joint UNDP/World Bank Energy Sector Managerent Assistance Program (ESMAP) was started in 1983 as a companion to the Ener>v Assessment Program, established in 1980. The Assessment Program was designed to identify and analyze the most serious energy problems developing countries. ESMAP was designed as a pre-investment facility, partly to assist in implementing the actions recommended in the Assessments. Today ESMAP carries out pre-investment activities in 45 countries and provides institutiondl and policy advice to developing country decision-makers. The Program aims to supplement, advance, and strengthen the impact of bilateral and multilateral resources already available for technical assistance in the energy sector. The reports produced under the ESMAP Program provide governmenta, donors, and potential investors with information needed to speed up project prepar- aticn and implementation. ESMAP activities fall 'into two major groupings: Energy Efficiency and Strategy, addressing the institutional, financial, and policy issues of the energy sector, including design of sector strategies, improving energy end-use, defining investment programs, and strengthening sec'tor enterprises; and - Household, Rural, and Renewable Energy, addressing the tech- nical, economic, financial, institutional and policy issues affecting energy supply and demand, including energy from. traditional and modern sources for use by rural and urban households and rural industries. FUNDING The Program is a major international effort supported by the UNDP, the World Bank, and bilateral agencies in a number of countries including the Netherlands, Canada, Switzerland, Norway, Sweden, Italy, Australia, Denmark, France, Finland, the United Kingdom, Ireland, Japan, New Zealand, Iceland, and the USA. INQUIRIES For further information on the Program or to obtain copies,of the completed ESMAP reports listed lt the end of this document, contact: Division for Global and OB Energy Strategy, Management Interregional Projects and Assessment Division United Nations Development Industry and Energy Department Programme World Bank One United Nations Plaza 1818 H Street, N.W. New York, N.Y. 10017 Washington, D.C. 20433  GHANA SAWMILL RESIDUES UTILIZATION STUDY VOLUME II - ANNEXES OCTOBER 1988  Page Annex 1: List of Institutions and Individuals Coutacted..........* 3 Annex 2: Financial and Economic Analysis Assumptions ............. 11 Annex 3: Classification of Ghana Coumercial Timber Species*...... '9 Annex 4: Mills Surveyed by Mission.............................. 22 Annex 5: Sawmill Process Heat Unit Production Model.............. 26 Annex 6: Grid Connected Cogeneration Models (STP)...............9 34 Annex 7: HIM Cogeneration odels................................. 47 Aunex 8: Saw Blade Cu"' Improvemeuts............................ 78 Annex 9: Indwutrial/Commercial Plant Operational Details......0.* 82 Annex 10: Sawdust-Fired Boiler Conversion Models -- OXil Substitution .............................................. 88 Annex 11: Sawdust-Fired Boiler Conversion Models - Vood Substitution ....... . .......................... 109 Annex 12: Laboratory Test Results on Woodfuels Samples............ 127 Annex 13: Charcoal Production Models.............................. 130 Annex 14: Sawdust Briquetting Plant Specifications and Models..... 137 i  Antes 1 List of Institutions and Individuals Contacted  Annex 1 Page 1 of 7 LIST OF INSTITUTIONS AND INDIVIDUALS CONTACTED Ministry of Fuel aud Power Mrs. T. Owusu, Deputy PNDC Secretary of Fuel aAd Power Mr. L. Denkyi, Executive Director, National Energy Board Mr. M. Opam, Renewable Energy Officer Mr. J. Attah-Puah, Energy Data Analyst Mr. D. Tarnawiecki, UNDTCD Adviser Ministry of Lands and Natural Resources Mr. C. Birikorang, Actg. Chief Technical Director Forestry Department Mr. J. Francois, Chlef Conservator of Forests Forestry Commission Dr. E. Asibey, Executive Director Forest Products Research Institute Mr. Addo-Ashong, Director Mr. S. Kwabena-Nketiah, Research Officer Building and Road Res2arch Institute Dr. M. Cidigasu. Director Mr. J. Ocloo, Head, Materials Division Mr. Amonoo-Neizer, Head, Structures Division Forest Products Inspection Bureau Mr. J. P'prah, Divisional Manager, Field Services, Takoradi Mr. Mintah, District Manager, Kumasi Mr. P. Haizel, Data Processing Manager Timber Export Development Board Mr. M. Lyons, Managing Director Mr. J. Baidoe, Managing Director-Designate Mr. F. Abraham, Data Processing Specialist  Annex 1 Page 2 of 7 Ministrr of Industry Mrs. Woanyah, Deputy Chief Industrial Promotion Officer Mr. Attah-Okine, Senior Industrial Promotion Officer State Transport Co. Ms. E. Nyarko, Traffic Superintendent, Bulk Haulage Division Ministry of Finance and Economic Planning Mr. J. Addaquay, Economist, Central Projects Monitoring Unit National Investment Center Mr. S. Lister, Development Economist (Consultant) National Investment Bank Mr. H. Annan, Head, Economic Research and Statistics Volta River Authority Mr. L. Caseley-Hayford, Chief Executive Mr. P. Laryea, Deputy Chief Executive, Administration Mr. E. Nanka-Bruce, Deputy Chief Executive, Engineering Mr. A. Ahiable, Principal Finance Officer Electricity Corporation of Ghana Mr. Fynn, Managing Director Mr. Addae-Konedu, Commercial Director International Agencies Mr. S. Choi, Resident Representative, World Bank Mr. Pankaj, Transport Economist, World Bank Ms. P. Jones, Country Economist, World Bank Mr. Nyarko-Mensah, Program Officer, UNDP Canadian High Commission Mr. R. Ehrhardt, First Secretary, Development Mr. F. Hack, Second Secretary Ru-Tek Consultants Ltd. Mr. M. Ben-Dzam, Wood Industries Specialist Mr. E. Ben Hagan, Technical Director  Anuex 1 Page 3 of 7 Subri Industrial Plantation Co. Ltd. Dr. E. Djokotoe, General Manager Mr. A. Mather, Technical Advisor Specialized Timber Products Ltd. Mr. I. Berbari, Managing Director Mr, T. Berbari, Production Manager A.G. Timbers Ltd. Mr. Zahlen, Mana8ing Director Mr. Borkowski, Chief Engineer Hardwood Timbers Co. Ltd. Mr. Nartey, Managing Director Mr. P. Nartey, Asst. Managing Director Saoud Timbers Ltd. Mr. A. Saoud, Managing Director Mr. M. ishah, Sales Manager Oda Plywood and Timber Ltd. Mr. H. Hage, Managing Director Chaowus Ltd. Mr. C. J. Tu, Managing Director Mr. M. Osei, Factory Manager Mr. F. Baidoo, Production Manager African Timoer and Plywood Ltd. Mr. J. Kanda, Managing Director Capt. A. Owusu, Director of Engineering Mr. Amoayi, Power House Superintendant Marktrace Projects Ltd. Mr. M. Pardoe, Project Manager Cliksten West Africa Ltd. Mr. P. Biaku, Chief Executive Mr. J. Frimpong, Deputy Production Manager Mr. K. Boamah-Darko, Deputy Maintenance Manager  -7- Annex 1 Page 4 of 7 MIM Timbers Ltd. Mr. D. Roetzel, Managing Director Mr. I. MacCorquodalep Production Manager Mr. K. Osei-Kusi, Technical Co-ordinator Mr. Osei-Kuffour, Accountant Mr. A. Yamoah, Electrical Engineer Mr. Schumacher, Chief Diesel Engineer Mr. C. Cleur, Mechanical Engineer HIM Agro Ltd. Mr. V. Opku, Accountant Scanstyle Furniture Ltd. Mr. H. Baeni, Joint Managing Director Mr. M. Peperah, Deputy Managing Director Mr. P. Peperah, Kanaging Director, Finance and Administration John Bitar Co. Ltd. Mr. H. Barakat, General Manager Mr. K. Morely, Production Manager Mr. K. Norgaard, Moulding Line Manager Mr. R. Skrzypek, Chief Engineer Western Timbers Ltd. Mr. S. Masri, Managing Director Takoradi Veneer and Lumber Co. Dr. Armstrong-Mensah, Managing Director Mr. E. Prahb Production Manager Kumasi Breweries Ltd. Mr. Barnes, Chief Engineer Mr. Blebu, Boiler Plant Supervisor Mr. Frimpong-Apau, Production Manager Guiness Breweries Ltd. Mr. C. Clark, Managing Director Mr. Agyeman, Deputy Chief Engineer Mr. T. Hutton, Project Manager, Cuiness London Mr. B. Pemberton, Commissioning Engineer  Annex 1 Page 5 of 7 Komfo Anokye Hospital Prof. A. Asafo Agyei, Actg. Medical Administrator Prof. J. Hiadai, Head of Dept. of Surgery Mr. A. Asiedu-Ofeit Senior Hospital Secretary Mr. C. Opong, Mechanical Superintendent Mr. Gyasi, Eoiler House i:perintendent Mr. C. Afful, Workshop and Machine Room Foreman Appiah Menka Complex Ltd. Mr. Appiah Menka, Managing Director Mr. D. Sabbabt General Manager Ashanti Oil Mill Ltd. Mr. E. Senah, General Manager Cocoa Processing Co. (WAM) Mr. J. Antonio, General Manager Mr. D. Adjei, Chief Engineer Mr. E. Osei-Opoku, Production Technologist Cocos Processing Co. (CPC) Mr. I. Van Der Puije, General Manager Mr. I. Abbiw, Factory Manager Mr. R. Bondu, Chief Engineering Prestea Goldfields Ltd. Mr. Royea, Ceneral Mines Manager Mr. K. Durston, Chief Mining Engineer Mr. Kusi, Asst. Chief Planning Engineer Mr. E. Morlini, Mill Engineer Mr. Tando, Forester Mr. Coleman, Sawmill Supervisor GIHOC Paper Conversion Ltd. Mr. S. Sowah, General Manager Mr. E. Ovarwe, Maintenance Engineer Mr. A. Boakye, Chief Accountant Mr. M. Martey, Production Manager  Annex 1 Page 6 of 7 Lever Bros. Ghana Ltd. Mr. A. Davie, Managing Director Mr. A. Quayson, Technical Controller Mr. W. Selormay, Chief Engineer Mr. B. Amiagyei, Deputy Chief Engineer Food Specialties Ghana Ltd. Mr. M. Adam, Factory Manager Mr. W. Grohb Plant Engineer Ghana Textiles and Manufacturing Co. Ms. P. Pao. Special Assistant Mr. C. Cheong, Production Manager Mr. P. Paul, Workshop Superintendent Mr. C. Ng, Workshop Engineer Tema Textiles Ltd. Mr. S. Pao, Managing Director Mr. J. Oppong-Wadee, Mill Manager Mr. 0. Agyeman-Danko, Technician/Engineer Dorman-Long Steel Ltd. Mr. M. Osei-Asare, Senior Engineer AESC Ltd. Mr. S. Tetteh-Norteh, Regional Consultant Mr. P. Denker, Principal Quantity Surveyor State Construction Co. Mr. Sunny, Regional Manager Mr. Lartey, Assistant Regional Manager A. Lang (Ghana) Ltd. Mr. Arthur, Chief Quantity Surveyor Blackvood Hodge Ltd. Mr. M. Wulff, General Manager Mr. S. Addo, Sales Manager  - 10 - Annex 1 Page 7 of 7 Ceramic. Cordeiro Ghana Ltd. Mr. J. Obeng, Managing Director Mr. E. Odei-Ameyam, Director of Administration Mr. E. Darko# Consulting Engineer Mr. B. Kusah, Consulting gngineer Mr. A. Kittoe, Consulting Zngineer GIHOC Brick and Tile Co. Mr. Ackah, Actg. General Manager Mr. J. Amissah-Otoo, Commercial Manager Mr. J. Ocran, Production Manager Ankaful Brick and Tile Co. Mr. K. Manukure-Henoku, Project Manager Coma Brick and Tile Co. Coop Bakers Union, Cape Coast Mr. Samuel Coferafe Tema District Zonal Coop Bakers Union Ltd. Mr. J. Appiah, Vice-President Accra-Tema Bakers Union Mr. Paul Yeboa, President Esquire Bakers, Cape Coast Myseke Bakery, Slmina Modern Bakery, Accra Traditional Fish Smokerst Takoradi Traditional Charcoal Makers, Kumasi  - 1] - Annex 2 Financial and Economic Analysis Assumptions  - 12 - Annex 2 Page 1 of 7 FINANCIAL AND ECONOMIC ANALYSIS ASSUMPTIONS Methodology Model Description A2.1 Printouts of analyses contained in the Annexes were produced with the aid of a spreadsheet cost/benefit model developed for the Mission. The model separately calculates both annualized and up to 20 year discounted cash flow (DCF) results, which may be compared for internal consistency. Breakeven values represent the price of the selected benefit required to equalize annualized benefits with annualized Costs. The DCP analysis provides for asset replacement at integral multiples of assigned asset life, and calculates internal rates of return as the discount rate which equalizes net present benefits and net present costs. Financial internal rates of return (FIRR) are for all resources engaged, i.e. before financing. Discounted payback times are obtained as the year in which the cumulative discounted net benefit stream switches from negative to positive. All financial analyses take the viewpoint of the implementing entity and thus do not measure effects on the Government's cash flow. Efficiency Prices Derivation A2.2 Economic prices should express the true scarcity of the products/services considered from a national economic point of view. Presently, two alternative methods for couverting financial (domestic market) prices to economic price3 are widely used. These methods are the Little-Mirrlees-Squire-Van der Tak (LMST) method and the UNIDO method. 1/ The LMST method values costs and benefits at border (world market) prices, stated in either local or foreign currency. The UNIDO method values costs and benefits at domestic accounting prices, stated in local currency. A2.3 In keeping with current World Bank guidelines, the LSMT method has been chosen. All appraisals have been made in US dollars in order to facilitate international price comparisons. However, it should be borne in mind that both methods render identical project selection results. 1/ See inter alia L. Squire and H.C. Van der Tak, Economic Analysis of Projects, The John Hopkins University Press, Baltimore and London, 1975, and UNIDO, Guidelines to Practical Project Appraisal, Social Benefit-Cost Analysis in Developing Countries, United Nations, New York, 1978.  - 13 - Annex 2 Page 2 of 7 A2.4 Generally, all traded inputs are valued at CI? Accra import prices and traded outputs at FOB Accra export prices. With respect to the IMST method of economic analysis, these prices need no adjustment. All tax and subsidy elements are netted out from local input components. Nest, these are converted from domestic to border prices by applying the standard conversion factor (SCF) derived immediately following. Pricing Exchange Rates A2.5 Rate of exchange with the US dollar utilized in the financial analyses is the effective "Window 1" rate established in the Government of Ghana foreign exchange auction system instituted in October, 1986. Exchange rates with European currencies flow from relationships with the US dollar in effect as of 16 October 1986. The exchange rates used are: 1 US$ - 150 Cedis - 1.97 DM = 0.69 b Imports and exports paid in other currencies do not play a significant role in the calculations. A2.6 The existence of unsatisfied demand for foreign exchange at the auction rate implies the presence of trade related distortions affecting the market for foreign currency. The sbadow foreign exchange rate is estimated by the World Bank at 170 Cedi per US dollar, implying that foreign exchange is undervalued by approximately 13 percent. The SC? is derived by dividing the "official" (i.e. financial) exchange rate by the shadow rate: 150/170 e 0.882 An SCF of 0.88 has been applied to the local components in the economic analyses. Discount Rate A2.7 A real discount rate of 10 percent per annum is applied to the financial appraisals based upon the estimated opportunity cost of capital. The social rate of discount (social rate of time preference), as used in the economic analyses, was not judged to differ appreciably from the financial rate of discount. Imported Equipment A2.8 Except where noted for financial sensitivity analysis purposes, Government of Ghana equipment import levies totalling 50 percent for most classes of capital goods have not been applied, consistent with IDA  - 14 - Annex 2 Page 3 of 7 credit covenants and COC duty exemptions for natural resoarce processing equipment. Import cost build-up includes international freight and insurance components. Local port and bank charges have been considered real resource costs for purposes of the economic appraisals. Labor A2.9 A shadow factor of 1.00 has been applied to the economic valuation of all categories of labor costs in-line wish World Bank estimates, the scarcity of skilled labor, and the relative lack of widespread unemployment in the Ghanaian rural sector. Typical labor rates utilized are given in Table A2.1. Table 12.1: TYPICAL LABOR COSTS CodIM0onth USS/year Skilled/Professional 11,000 880.00 Seml-Skilled 7,000 560.00 -Unskilled 4,500 360.00 Noteo 1 * Costs are gross and Include benefits end overheods which range from 20 to IC2S depending on Industry and employer. Source: Mission estimates. Land A2.10 Availability of land is not a rural sector constraint and a shadow factor of 0.00 for agricultural land has been employed in the economic analyses. The low land rental rates reflect the factor's abundance and have not entered into the financial evaluations. Fuels A2.11 Modern and traditioLtal fuels pricing and underlying assumptions are spelled out in Tables A2.2 and A2.3, following.  Table A2.2: FINANCIAL AND ECONOMIC SOST OF FUELS, JANUARY, 1987 (USS/tonne) Economlc cost Per HNet Unit Energy Accra Kumasl Takoradi Value (Accra) Fuel Financial Econo mile Financial Economic Financial Ercnomic (NJ/kg) (US cents/NJ) Fumlwood 25 27 10 14 16 19 13.1 0.21 (Alr-dried) Charcoal s0 105 66 93 132 151 29.0 0.36 Gbs 011 (ADO) 238 175 238 191 238 190 43.3 0.40 Industrial Diesel Oil (100) 170 145 170 161 170 160 42.1 0.34 (70% ADO - 0% RFO) Inland Fuel Oil (IFO) 111 86 111 102 111 101 40.1 0.21 (90% RFO - 10% ADD) Residual Fuel 01I (WO-6) 101 76 101 92 101 91 39.8 0.19 Electricity a/ b/ 0.052 bl 0.052 0.052 3.6 1.44 a/ Per kWh, b/ Per Ec0 tariff schedule. Rates are untform country-wide. MNote: 1. Cedi financial costs converted to U.S. dollar equivalents at exchange rate of CISOAISS. 2. Fuelsvood and charcoal financial costs based on typical large lot ("wholesale") transactions, I.e. cords of firewood and 35-40 kg bags of charcoal. 3. Fuelwood and charcoal economic values based on estimated long-run mrglnal cost of fuelwood production (USS5/tonne). Average charcoal conversion efficiency estimated at 14%, wet welght basis. 4. Petroleum fuel economic values are based on January, 1987 CIF Import prices plus Internal distrlbution costs. i Residual fuel oil economic value based on January, 1987 FOB export prices plus Internal distribution costs. S. Electricity economic value based on marginal grid cost of energy of 50.052/kWh pwr MGhana Generatlon Planning Study", January 1985, prepared for VRA by Acres Internatlonal Limited. _ Source: Ministry of Fuel and Power; NE8; VRA; ECO; Plattls Oligram; Mission estlmates.  - 16 - Annex 2 Page 5 of 7 table A2.3: ELECTRICITY CORITOI N OF UA COERCIAL AN IDUSTIAL TARIFFS Coaoircal Codis (a) MAXIIN DEMAN LESS TNAN 100 kVA Flrst 100 units or less supplied per month 1,750.00 For ech of the next 200 unIts supplied pWr month I1.86 For ech additional unit suppied pW month 11.16 (b) MAXIIN CEOM OF 100 kIVA AND ABOVE lloxilu domn chrg pr month: Each KVA of maximum dema. Unit Charge wr onth: 437.45 C&-h of the first 170 units per KVA ot maxlm demand 3.28 Each of the next 170 units per KVA of mawimu dend 2.99 Each additional unit upp led 2.16 The Nxim1 deond charge In a month shall not be lss thon 43,687.49 Industrial Cadis (a) MAXIMIO OEMAN LESS THAN 100 kVA First 100 units or less supplied per month 1.750.00 For ech of tho nxt 200 units suppiled per nth 11.86 For ech additlonal unit supplied p month 1116 (b) MAXISM DEKW NOT LESS THAN 100 kVA (i) High voltage Metering Maxim dewand chage Wr month: Each kVA of maxism demand 422.18 Each of the first 170 units pr kVA of deond 3.28 Each of the next 170 units per kVA of demand 2.55 Each additional unit supplied 1.97 The dmnd charge In a month shall not be les thn 41,964.98 (ii) Medium Voltage Meterina Maxlm dmad charge per month: Each kVA of maxim dmnd 437.45 Each of the fIrst 170 units per kVA of demand 3.28 Each of the next 170 units pr kVA of demand 2.99 Each additional unit wpiled 2.16 The demand charge In amonth sholl not be less than 43,687.49 NIte: Tariffs ftfected April 1966. Sourc: ECS.  - 17 - Annex 2 Page 6 of 7 Transport A2.12 Long haul transport costs and underlying assumptions are detailed in Table A2.4. Short haul costs estimated in some of the analyses use truck daily rental rates divided by daily hauling capacity as a proxy measure.  Table A2.4: FINANCIAL AND ECONOMIC COSTS OF ltRANSPORF, 1986 Road Transport Costs Financial Cost Economic Cost Assumed Payloads per publisbed of Vehicle EconomIc Coab VehlCie TYpe Rated Payload Wood Sawdust STC dry moods tariff a/ Oberation bl Wood Sawdust Heavy Goods 25t 22t 14t US 6.4/+t-km USSIJ.O/km US6.8/t-km USIO.7t/t-km Medium Goods 7t 7t 4t US 6.4ft-km USS0.57/km US8.ft/t-km US14.4$/t-km One-Way Road Transport Distoanes: KumasI - Tewo: 295 km Kumasi - Accra: 270 km Takoradi - Toom: 250 km Railway Transport Costs Cargo Kumasi-Accra Line Tariff (Financial Cost) s/ Class 3 (includes Sawdust) Cedi 1,797/t u USS1J.98/t (US 4.41/t-km) Class 4 (Inctudes firewood) Cedi 1,596/t * USS10.64/t (US 3.9t/t-km) a/ Based on State Transport Corporation tariff of Cedi 4.79/t-km. Tariff adjusted for 100% empty return ratio. bY Per "Economic Appraisal Report on RehabilIltation of Central and Eastern Lines," October 1966, RITES, New Delhi; for Ghana Railway Commission. Costs assume 50% empty return ratio. c/ Per GRC listed tariffs. Source: STC; RITES; GRC; Mission estimates. 0  - 19 - Annex 3 Classification of Ghana Commercial Timber Species  - 20 - Annex 3 Page 1 of 2 CLASSIFICATION OF GHANA OOWERCIAL TIMER SPECIES Los OTHER SOECIES EXPORT TRADE/LOCAL GROUP !/ CLASS b/ BAN c/ BOTANICAL NAME TRADE NAP NAME Group A le B Entandrophragma angolense Endin m B Entandropnragou cylindrlcum Sopole a Entandrophrague utilo Utile a Khaya enthotheca Mahogany Krumben Khays grandifollola mahogany Kruba B Khoya Ivorensis Mahogany Dubinl B laclura excelsa Odm froko Naucleo diderichl IKusia 1 Tieghomelle heckelil Makore Baku lb a Lovoa trichillodes African Walnut Lovoo a Perlcopsis elato Afrormosla Kokrodue Trwminella Ivoronsis d/ Emiro Triplochiton scleroxylon Wawa 01mche Ic B Heritlere utills Nyankom Nlangon lle B Entandrophragma condolle Candollel 3uareo cedrata Scented Guarem Suer" thvapson II Suer" Kweduo Lophire elaot Ekki IKeku Piptadeolastrum africanun d/ Dehuz lIb Antlaris toxicarla Kyonkyan Antlarls Copelfera salikounda Bubinga B 6ulbourtla ehie iHyodue B Monsonla altissima Mensonha Mitragyna ciliate Subaha Mitregyne stipuloss Subeha-Akoe Nesogordonla papaverifera Dante B Turraeenthus efricanus Avodire III Afzelil africene Afzella Apo, Pope Albizzia ferruginea Albizzia Anopyxis killnanoa Kokotl Canarlum schwelnfurthil Canarium Bediwune Cyllcodiscus babunensis Okan Denys Dlstemonanthus benthemlenus Ayen Ponsondua Peornarl excelsa Ofam Pycnoanthus eagolensis Otle Strombosel gleucescees Aftina Terminalle superba d/ Ofram Afwr  - 21 - Annex 3 Page 2 of 2 IV Aningeria robusta Asanfona Dombax brevicuspe kxnbax Pterygota macrocarpa Kyare Kyereye Group B III Celtis adolfl-frederick d/ Celtis Esokosua Celtis mildbraedil d/ Esa Coltis Celtis zenkerl i/ Celtis Esakoko Cynometra ananta Ananta Erythrophleu Ivorensis Potrodom Holoptela grandis Nakwa Namsa africana bompegya Norus meszygl Wonton Petersiantbus macrocarpus Esia Scottollila kisineona Tiabutuo Sterculla rhinopetals Wawabla IV AphIims Pterocarpoldes Yaya Antrocaryon micraster Aprokuma Boabax bounopozense Akata Ceiba pendandra Ceiba Onyina Chrysophyllum albidum Adosoa Adensime Danlell ogee Ogea Shodus Irivingla gabonensis Abesebuo Parkia bicolor Asom Sterculla oblonga Ohaa a/ Group A comprlses 40 specIes presently considered as comerclal and for which domestic and exPort markets exist. Group B contains 20 species presently considered as marginally comercial. However, these species are considered potentially comm_clal and are likely to be Increasingly exploited In the near future as markets are developed. b/ Forestry Department classification depending on desirability and value on domestic and export markets. c/ The 14 so-called "primy" species are banned from export In log ftor. All other species are considered secondary. Tectona grandis (teak) Is Included In the ban, but Is only available In small quantities from plantation forests. d/ Secondary species Identified by Forestry Department as being most useful. Source: Sliviconsult; TEODB; GMhB; fD.  - 22 - Annex 4 Mills Surveyed By Mission  - 23 - Annex 4 Page 1 of 3 MILLS SURVEYED BY MISSION NAME OF MILL SIZE LOCATION ASHANTI Logs & Lumber Ltd. Large Kuassi Poku Transport Industrial Complex Limited n n Lumber Processing Limited Wood Complex Kaasi Limited Specialized Timber Products Co. Ltd, Fyne Ltd. France Wood Processing Co. Ltd. Saoud Brothers a Sons Ltd. Prima Woods Ltd. Wood Industries Ltd. n Daniel & Co. Ltd. A. E. Saoud Ltd. Star Sawmill Products Ltd. 8iblani Logging & Lumber Co. Ltd. Naja David Veneer & Plywood Ltd. A. G. Timbers Ltd. Ashanti Timber Co. Ltd. Atwime Timbers Ltd. n Premier Wood Work Construction Co. Ltd. (PVCC) Medium Kumasi Ridge Timber Co. Ltd. F. E. Ohassoub (GM) Ltd. John Sitar & Co. Ltd (JC04)  - 24 - Annex 4 Pa8e 2 of 3 West African Hardwoods Ltd. S.E.A. Timbers Ltd. Piku Transport & Sawmills Ltd. Kuasi Timber Co. Ltd. F. N. OPpO.ng 9 Co. Ltd. Ehula Wood Products Ltd. Progrssivo Multi ldustries Ltd. Amakom Sawmills Small K1 sit EJlsu Forest Products Ltd. EJlsu Marks Wood Products Ltd. Kumosl Anthony Timbers Co. Ltd. f Timber Industries Ltd. C. M. Ghassoub Sawmills Ltd. n R. K. Pepera 1 Co. Ltd. Ashanti Curl & Lumber Co, Ltd. NMak Company Ltd. n iof I Sarpong Brothers & Sons Ltd. Foaeta African& - Gaboo Timber Ltd. Pant Tiobers Ltd. E5XIN AHUfO Nim Timber Co. Ltd. Large Him Chira Forest Mill Ltd. Medium Chira ounsu Bros. SamiII Small Sunyani Abesil Logs S Lumber Ltd. Small Abesim  - 25 - Annex 4 Page 3 of 3 CENTRAL International Hardwood Ltd. Large Ounkwa Thomsoo Moir & Gal loway Ltd. Small Ounkwa Pans Sawmills Ltd. Cape Ooast EASTERN Lre Ai d Oda Wood Complex Ltd. Large Akim Odo Myame Bekyore SawmIlls Ltd. Nkwaowkaw East Forest Products Ltd. Medlum Akim Ode Novotax Ghana Ltd. n Akio Oda Coppon TImber Complex Ltd. Small Nkawkaw W. S. I. SawmIlls Ltd. Akim Oda WESTERN Western TImbers Ltd. Large Takoecdl Ghana Prime wood Products Ltd. n Takoradi Takoradi Veneer & L,iber Co. Ltd. (TMLC) Takoradi john BItar Co. Ltd. (J.C.M.) Sekondi General Development Co. Ltd. Takoradl African Timber & PlYwood (A.T. & P) Samrebol Glik$ten West African Ltd. Sifwl WIamso Hardwood TImber Products Ltd. Medlum Talaoradi Prestea Samills Ltd. a Prestee Prosteo Goldflelds Ltd. Small Prestes HIblanl Industrial Complex (W1od) Biblani Manso Sawml l Ltd. n Mnso  - 26 - Annex 5 Sawmill Process Heat Unit Production Process  - 27 - Annec 5 Page 1 of 7 SAWMILL PROCESS HEAT UNIT PROCwCTICN MOCEL Assuptions o 6 dry kilns o 150 ms capacity/chargeAhlln o Orying mix: 58 whitewoods (295 1 In. whitewoods) (295 2 In. whitewoods) 42% redwoods o Drying times: I In. whitewoods - 10 days 2 In. whitewoods - 14 days Redwoods - 21 days o Kilnas aperate continuouily 50 yeeks/year Annual Kiln Production Volume Let x * Annual production volume In (0.29 x/150) (10 * 14 days) + (0.42 x/150) (21 days) a 350 days x a 3,32? .3Akiln/year Total plant capacity a 6 kiIns x 3,327 m3 a 19,962 n3/yeer Allowing for charging time a 19.500 m3/yr of which: Whitewoods (58) a 11.310 m3/yr Redwoods (42%) * 8.190 n3/yr Annual Financial Cost of Drying * S243,280 /19,350m3 * $12.4?Au3 Let V a Cost of whitowood drying R a Cost of redwood drying  - 28 - Annex 5 Page 2 of 7 (R) (0.42) + (C) (0.58) s S12.47 ad21 d!ys -- n (14 + 10 4dYs)/2 V a> (1.75 W) (0*42) + (i) (0.36) a 512.47 V * S9.48/ u R S 16.60/u  - 29 - Annex 5 Page 3 of 7 EJBEIr: SAMIML Bc8S HBAT UNIT IIIC0N MOODL BASIC PARAMTE Project Life = 15 Disount Rate = 10.0% Official Elch. Rate Cedi.USD) = 150 3quilibriu BExoh. Rate Cedi/WD= 170 ShadowValue of Unski led r r 1.00 Shadow Value of Agricultural Id 0.00 International Freight = 8.5% InsUrance : 1.2% Imvort D1t : 0.0% Sales TaxI 0.0% 1mise Tax = 0.0% Port Charges 4.0% Bmk Chargtes = 5.0% Capital Cost Contgencyt 10.0% Operating Cost Contingency = 10.0% i~oxrrc~VARIAmmA Residue Inpt (M.T. @ 38% miwb) = 11000 Redwood GrCos Value Added = 22.5% Whitewood Gross Value Added = 12.5% ANNUALIU ANALYSIS hEEULTS NET ANNUAL FINANCIAL BEEFIT 374.82 NET ANNUAL ECIONCHIC BENEFIT = 418.59 DCF ANALYSIS RSULTS FINANCIAL NET PFSMf VALUJE = 2833.58 FIRR 42% ECMOIIC NER IESST VALUE 3167.39 KMU _ 46% DISCaxNTSD PAYBACK TIME, FINANCIAL ANALYSIS = <3 years DISCOUNTED PAYBACK TIME, ECONOMIC ANALYSIS = <3 years  - 30 - Annex 5 Page 4 of 7 PIWDJUC: SAILL PDOCES HEAT UNIT CIXLTICN MDEL BASIC PARAMEr1 ProJect Life = 15 Disount Pte _ 10.0% 0Iffffoial lh. Rte CediDI = 10 iibrium hooh. Pate Cedi/lA = 170 Shadow Value of Unskiiled USbor = 1.00 Shadow Value of Agricultual Laad 0.00 International Freight_ 8.% Inur -c 1.2% ImotDaty = .Q ImSI:t a Port Chages _ 4. Bank Charges = 6.0X Capital Cost Contingency = 10.0% Operating Cost Contingency = 10.0% PROE?124VARIAMAS Residue Input (M.T. O 38% mwb) = 11000 Bdwod aros Value Added = 16.0% Whitewood Gross Value Added = 10.O ANNUALIW ANALYSIS R1aLTS Ngr ANNUJAL FNANCIAL B1ENFIT = 197.76 NET ANNUAL EONOfMIC BNNEFIT 220.95 DCF ANALYSIS RMLTS FINANCIAL NMrT WRN VALUE 1486.89 M = 27% E(AIO C NrT FRT VALUE = 1664.11 RII R 30% DISOXIJTD PAYBAC TIME, FINANCIAL ANALYSIS = <5 years DISCJTElI PAYBAK TIME, KENCH1C ANALYSIS = <5 years  - 31 - Anmex 5 Page 5 of 7 PD T: AKEM POC HHW BASIC PARAMETERS Project LAfe = 15 Disounmt Rate = 10.0% O1ffici 1Ruch. te adi - Equilibium Exch. Rate aCedi/ 570 Shdw Value of Uskiled - 1.Q0 Shadow Value of Agi cultr_l0.0 International Freight: 8.5% Insura~e =1.2% - 1~~~~.n E,a.es Tx = Q7iI Port (cnarges : 4.0% Bank _a5.Q Caital Cost Continge - 1=s: Oper4ting C;ost Oontinierw = 10.0X riwrit vaum. Residue Input (M.T. 0 38% mawb) = 11000 ~~od Gross Value Add 30 i t sGro Value Added 15.0S ANNUALI2E) ANALYSIS la T NIT ANNUAL FINANCIAL BRM = 551.87 NIT ANNUAL IOONXWC BIRFIT - 616.24 DC? AXALYSIS RUIUIT FINANCIAL NET PRUNr VALUE 4180.27 FI 66% BCX1MIC NET P9_Tf VALUE = 4670.67 EIR 62% DIS(mJNITB PAYBACK TIME, FINANCIAL ANALYSIS = 2 years DISC(XED PABALK T1,2 BOONCHIC ANALYSIS <2 y  - 32 - Annex 5 Page 6 of 7 SD~~~~~~~~M =/ IBM MoPUc "L ~ ~ ~ ~ ~ ~ ~ ~ ~ SA -s MIRLVU~~ UmeILan nWf UMA fl aNCWiC rn8 (ler. ('000 W) ('000 WI) ('06 W) (ihl) ('00 D)('000 WI) ('000 WI) ('00 IM) buolla datim ad Strutues 1 5 0. 12.00 6.0 1.00 62.00 8.15 55.12 1.38 alof/t awlt d tu8 trs 1 15.00 5.00 0.00 1.00 20.00 2.6 18.U4 2.40 ShtTl 82.00 10.18 74.35 9.18 -inn I ; WiDl boler aid Vter Ttsat Plt 5 184.00 184.00 1.00 14.00 24.19 184.00 24.19 mrk, Poi l T hot"Wu t 15 33.00 33.0 1.00 33.00 4.34 33.00 4.34 Wul Stoae ad 3.1ilg 15 1.00 1.00 1.0 100 O.92 1.0 0.92 KItd o d Istrum t 15 18.00 18.00 1.00 18.00 2.31 18.00 2.37 sui l a15 14.00 14.00 1.00 14.00 1.84 14.00 1.84 MU1D indC ottol b1 o (I15 d kln) 15 5.00 50.00 6.00 300.00 39.44 300.00 39.44 stem t 15 15.00 15.00 2.00 30.00 3.94 30.00 3.94 SPe 15 15.00 15.00 1.00 15.00 1.917 15.00 1.97 otAl 601.00 19.02 601.00 19.02 height 15 51.0 51.0 1.00 51.09 6.12 51.09 6.12 Is1c 15 1.21 M.; 1.00 1.21 0.95 1.21 0.95 hb-botal 58.30 1.66 58.30 1.66 mIlll W L (CI 659.30 659.30 PE MA MID BAIR M Port Mars 15 26.31 26.31 1.00 26.3? 3.4? 23.21 3.05 Bak C g 15 32.96 32.96 1.00 32.96 4.33 29.01 3.81 .5934 1.80 52.22 6.81 15 94.00 9.0 1.00 94.00 12.36 94.00 12.36 Inllation 15 153.33 104.00 201.33 1.00 251.33 33.83 239.29 31.46 raiA 15 11.00 11.00 1.00 11.00 1.45 11.00 1.45 Bui-toW 362.33 47.64 344.29 45.2? CIAL MOT 1 L m.6? 885.30 . 1162.96 152.90 1130.16 148.59 CAPITL VU 21.," 88.53 116.30 A6.30 15.2) 113.02 14.86 IOTL CAITL 0)21 305.4 93. 1219.26 12.26 168.19 1243.11 163.44  - 33 - Annex 5 Page Z of 7 UAL mL I-M= oi MM& =c BsMC Lod 1 orei btal Tm!! COB? T/AWI COST (IIIID1 (IIID) l(D) (Unts) ('000 IID) (UED) ('000 9D) 8upivisor (urn-maths) 13.33 13.33 24.00 1.16 64.10 1.55 8ldiW or1ker/Ioler kw (ur-mtbs) 53.33 63.33 4.00 t.St 4.06 2.26 U *llei orlerltwer (umt8) 30.00 30.00 16.00 3.60 26.4? 3.18 blatee Ver (lmaths) 30.00 30.54 24.00 0.12 26.417 0.4 skilleld VorIa L* (rn-mthsl 30.00 30.00 36.00 1.08 26.4? 0.9 bib-Total 9.12 8.58 ri letricity (kfi) 0.021 0.41U 102000 21.8 0.052 54.18 ubtotal 21.88 54.18 ten. 15000.00 15000.00 1.00 15.00 13235.29 13.U lbTotal 15.00 13.24 uplies 100.00 1500.00 1.00 15.00 15000.00 15.00 but 818 kin (t) 3.33 3.33 2000.00 6.66 1.94 15.88 Sub- 6.66 30.8 tI C T TL 68.26 106.8 0UATIN COST o 6.83 10.69 1OML OHM CO 15.09 11W.56 0wn n M AA MGM DEAI roanL BOMC IIC 11a Foei Total Pm N? = IT/IT Bt (lD) (D) ( (Units/Yr.) ('000 D) (lID) ('000 lID) ed.od Gm Vus Adned (3) 51.35 57.35 8190.00 469.10 51.35 469.70 lbituod Gras ueed (d) 21.80 U.80 11310.00 2U4.5 21.80 246.56 IM: 4% A1e Caminia 0.04 -28.65 -28.65 Les: 9S le ad Other au*s 0.09 44.64 [es: 1138 Lev 0.01 -1.16 T OTA DITS8 615.80 681.60  - 34 - Annex 6 Crid Connected Cogeneration Models (8TP)  U'3 1810U it's 10,ml W I9U 8'O t'0 ? mm 6t'8 0319 89's 0019 00'99 RIt "'S 89'81 d "Int 10'8t9 II's "to 9 * 0"9 6rtit 9&'8 I'- m Wlit 9019? W095 0051? 110k StT 00'11 St' 0011 001 00'11 oon It PU ulS "In "ll 90 10 a, OO'tB 00'1 OO't81 Ot 00'01 91 wiII st01 OO'U 6t'i OO'U 00'1 OOI' 006 ST3 Ot't "la" Olt 9&'9t T" U*1 80'tl S6'1 98'