Ghana - Environmental Resource Management Project

~~~'g- / 6' &:T2 Document of The World Bank FOR OFFICIAI. USE ONLY MICROFICHE COPOf Report No.:10691-GH Type: (SAR) Title: ENVIRONMENTAL RESOURCE MANAGEFM Report So. 10691-GH Author: HILL, IAN Ext. :345o,6 Room:J5 177 Dept. :F4AG STAFF APPRAISAL REPORT REPUBLIC OF GHANA ENVIRONMENTAL RESOURCE MANAGEMENT PROJECT SEPTEMBER 16, 1992 rn Africa Department ulture Operations Division I has a restricted distribution and may be used by recipients only in the performance of luties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit - Cedi (C) US$1.00 = C395 C1,000 = US$2.54 WEIGHTS AND MEASURES 1 metric ton (m ton) = 2,205 pounds (lb) 1 hectare (ha) = 2.47 acres (ac) 1 kilometer (km) = 0.62 miles (mi) 1 meter (m) = 3.28 feet (ft) GOVERNMENT FISCAL YEAR January 1 - December 31 This report is based on the findings of an appraisal mission that visited Ghana in March 1992, comprising I. Hill (Mission Leader), Ms. C. Cook, Sociologist; C. Sow, Economist; K. Creighton, Consultant Ecologist; J. Michael, Consultant Survey Specialist; and Y. Prevost (DANIDA Consultant Information Specialist). Messrs. P. Stromgaard, DANIDA, S. Jensen, DANIDA, P. Dobie, ODA, and Ms. P. Stone, ODA, also participated in the mission. Mr. F. Falloux was the lead advisor and Messrs. J. English and S. Mink were the peer reviewers for the project. Messrs. J. Joyce and E. Lim are the managing Division Chief and the Department Director, respectively, for the operation.  FOR OFICIAL USE ONLY ABBREVIATIONS AgEngSD Agricultural Engineering Services Department CSIR Council for Scientific and Industrial Research CWMPOC Coastal Wetlands Management Project Oparations Committee DANIDA Danish International Development Agency DGW Department of Game and Wildlife EAP Environmental Action Plan EIA Environmental Impact Assessment EPC Environmental Protection Council EPC/TS Technical Secretariat of Environmental Protection Council EQPOC Environmental Quality Project Operations Committee FAO Food and Agriculture Organization, United Nations FE Foreign Exchange GDP Gross Domestic Product GEF Global Environment Facility GET Global Environment Trust Fund GIMPA Ghana Institute of Management and Public Administration GSC Ghana Supply Commission LAB Institute of Aquatic Biology ICB International Competitive Bidding IDA International Development Association IUCN International Union for Conservation of Nature (now World Conservation Union) LARC Land Administration Research Center L/C Lands Commission LCB Local Competitive Bidding LWMPOC Land and Water Management Project Operations Committee MFEP Ministry of Finance and Economic Planning MLG Ministry of Local Government MLNR Ministry of Lands and Natural Resources MOA Ministry of Agriculture MSD Meteorological Services Department NDPC National Development Planning Commission NEP National Environmental Policy NGO Non-Governmental Organization ODA Overseas Development Administration, United Kingdom OHCS Office of the Head of the Civil Service PPF Project Preparation Facility PNDC Provisional National Defense Council RSAU Remote Sensing Applications Unit SIPOC Studies and Investigations Project Operations Committee SOE Statement of Expenditure SRI Soils Research Institute TS Technical Secretariat of Environmental Protection Council UofG University of Ghana WRRI Water Resources Research Institute hs document has a restrcted distribudon and may be used by redpients only In te perwfoim of her offcial duties. Its contents may not oleise be disclosed without World Bank authoral=_  REPUBLIC OF GHANA ENVIRONMENTAL RESOURCE MANAGEMENT PROJECT Table of Conter_s Pag No. CREDIT AND PROJECT SUMMARY .......................... iii-v I. INTRODUCTIQN ..........................1 H. THEENVIRONMENTAL SETrNG ...................1.......... A. Backgrourd .................................1... B. Environmental Resources ...... ...... ................... 2 C. TheMain Environmental Issues ..................... ... 5 D. The Major Causes of Environmental Degradation ..... ............ 8 E. The National Environmental Policy and Action Plan ..... .......... 10 F. Institutions ...................................... 11 G. Bank Assistance Strategy for the Environment ...... ............. 16 HIl. THE PROJECT ........................................... 17 A. Rationale and Objectives ......... ....................... 17 B. Project Design . ...................................... 18 C. Summary Descripticn .................................. 19 D. Detailed Features . .................................... 20 IV. PROJECT COSTS AND FINANCING ........ .................... 26 A. Project Cost Estimates .............. . ................... 26 B. Proposed Financing Plan . ............................... 27 C. Financial Implications for Government ........ ................ 29 D. Procurement .................................... 29 E. Disbursement ..................................... 33 F. Auditing and Reporting . ................................ 34 V. PROJECT IMPLEMENTATION ................................ 35 A. Organization and Management ............................. 35 B. Project Management ................................... 36 C. Project Implementation ................................. 38 D. Project Supervision .................................... 43 E. Technical Assistance ................................... 44 F. Mid-Term and Completion Reviews ......... ................ 45 VI. BENEFITS. JUSTIFICATION AND RISKS ......................... 46 A. Benefits andJustification . ............................... 46 B. Risks ............................................ 47 C. Environmental Effects .................................. 48 D. Impact on Women .................................... 48 VII. ASSURANCES AND RECOMMENDATIONS ....... ............... 48  - ii- NNEXES 1. Environmental Problenms, Impacts and Causes 2. Land and Water Management 3. National Environmental Action Plan 4. Local Participation and the Role of Women 5. Studies and Investigations 6. Survey and Mapping 7. Summary Cost Tables 8. GEF Project Selection Criteria Reference Sheet 9. Disbursement Schedule 10. The Environmental Resource Management System II. Management Board of EPCITS. Membership and Terms of Reference 12. Membership of Project Management Committees 13. Project Implementation Schedule 14. Training 15. Project Supervision 16. Technical Assistance and Local Consultancies 17. Documents Available in Project File GURWI 1. Proposed Structure, EPC/TS 2. Project Implementation Arrangements APS 1. Agro-Ecological Zones, IBRD 23827 2. Coastal Wetlands Sites, IBRD 23746  - iii - REPUBLIC OF GHANA ENVIRONMENTAL RE-)URCE MANAGEMENT PROJECT CREDIT AND PROJECT SUMMARY Ih.oWer: The Republic of Ghana BNeneteidaries: Ministries of Local Government, Lands and Natural Resources, and Agriculture Crllt Amount: SDR 12.6 million (US$18.1 million equivalent) Xuma: Standard, with 40 years maturity Proiect IMEdesUon: The project is designed to support the implementation of the Government's Environmental Action Plan based on: (i) the inter- sectoral nature of many environmental concerns; (ii) the fact that many areas of GoverfLment are to be decentralized to District Assemblies; (iii) the need to ensure that communities are involved in decisions about the use of environmental resources; and (iv) the fact that significant portions of the EAP are to be implemented through planned or on-going sector-specific projects supported by IDA or other external aid agencies, particularly in the forestry, urban, industrial and energy sub-sectors. The project would use capabilities in existing agencies, including NGOs, rather than attempting to create a new central agency with responsibility for all environmental matters. The main objectives of the project would be to put in place the institutional and technical capabilities required for effective environmental monitoring, policy formulation and coordination; to support a pilot programn to combat soil degradation and erosion; and to help to prevent further destriction of the fragile resource base in the coastal zone, in which issues of global environmental concerns are partly involved. The project would be implemented over five years and would include three main components: (1) Development of an Environmental Resource Management System through: (i) Institutional support to the Technical Secretariat of EPC (EPC/TS) to enable the Council to undertake its coordinating, monitoring and regulatory functions, at central and regional levels; (ii) Human Resource Development including post-graduate education and training programs in environmental management, for staff of EPC/TS and sectoral agencies at central and district levels; (iii) Environmental Education based on public awareness campaigns; and (iv) Development of a national environmental information and monitoring system, providing  - iv - information on environmnental quality, topography, land use, climate, land suitability and land tenure. (2) Land Resources Management would support a pUlot project for development of methodologies to minimize land degradstion through the planning and sustainable management of land by ,ommurAties and farmers. Th2e pilot project would be devoted to cn-the-job training in a limited number of villages, of rural sociologists and technical staff within MOA in: methods of raising community awareness of land degradation; simple diagnostic surveys to determine degradation problems; identification of technical solutions that are acceptable to communities; and the lay-out of necessary works in the field. A land management fund would be used to provide incentives for farmers to adopt improved land management practices in the short term, until the long-term benefits become appar-nt. (3) Coastal Wetlands Management would provide for the demarcation and management of five coastal wetland sites, the Muni, Sakumo, Densu Delta, Songor, and Anlo/Keta lagoons, that are recognized as sites of international importance as habitat for migratory waterfowl. Inventory and monitoring of the ecology of the sites would be coupled with public education programs and studies to identify forms of development that would be compatible with preserving the ecological integrity of the sites. External funding for this component would be provided by the Global Environment Trust Fund (GET). PJect BNenefits: 'MThe project would improve the management of environmental resources by both Government and the people. It would improve the availability of information required to make decisions, providing a better understanding of the environmental consequences of courses of action, and early warning of pollution or degradation. The project would develop appropriate methods to involve people in the planning and management of their own resou.ces in the coastal wetlands and elsewhere, that could be used in wider national programs. Elaha: The main risk relates to the effectiveness of the proposed environmental management -system to achieve effective inter-sectoral action, but the project is designed to strengthen this process at national and district levels. Risks are associated with the Land and Water Management component as it involves innovative approaches, but the pilot design allows fo.i gradual development of staff skills and methodologies. Tnere is also the risk of a slowing down of econamic growth that would adversely affect the project, but the National Environmental Policy clearly expresses Government's commitment to conservation and the sustainable use of the environment. Ewnomi Rate of ROM: Economic rate of return calculations are not very meaningful as none of the main activities lend themselves to conventional analysis and would be inappropriate for the pilot land a.J water management program.  Foreign 5dx T2W ................. ........ ( US$ lollion)......... 1. Development of Erv.ironmontal Resource Management Systm A. Env_omental Manaemt Developuent - Institutionm Support to EPCiTS 3.1 2.2 5.3 - Human Resource Development 1.4 0.4 1.8 - Environmental Education 0.3 0.S 0.8 Sub-Total 4.8 3.1 7.9 B. Environmental Information Systca Development - Environmenta; .ddality 1.4 0.6 2.0 - Topographic Base Information 3.8 0.6 4.4 - Presnt Land Use 1.7 0.5 2.2 - Land Ownership 0.4 0.2 0.6 - Meteorological Information 0.6 0.1 0.7 - Land Suitability 0.4 0.1 0.5 Sub-Total 8.3 2.1 10.4 2. Land and Water Management 2.7 2.8 5.S 3. Coastal Wetlands Management 2.2 4.0 6.2 Total Base Cost 18.0 12.0 30.0 Physical Contingencies 1.2 0.7 1.9 Pice Contingencies 1.9 2.1 4.0 TOTAL PROJECT COST 1/ 21.1 14.8 35.9 PRQMM MANCIG LA .................. (Umillion). WDA 14.1 4.0 18.1 GET 3.1 4.1 7.2 ODA (UK) 0.9 - 0.9 DANI)A 3.0 1.3 4.3 Government of Ghana /. 5.4 5.4 TOTAL 21.1 14.8 35.9 ESTIMATED IDA AND GMIF DISBURSEMENTS al ear Em E19 EY9 FY9 EY9 FY9 ........................ (US$ millions). IDA Annual 2.4 4.9 4.3 3.1 2.3 1.1 Cumulative 2.4 7.3 11.6 14.7 17.0 18.1 GET Annual 0.5 1.5 2.1 1.7 1.0 0.4 Cumulative 0.S 2.0 4.1 5.8 6.8 7.2 1/ Includes Duties and Taxes of $1.7 million.  GHANA ENVIRONMENTAL RESOURCE MANAGEMENT PROJECT I. INTRODUCO 1.1 Severe droughts in Ghana during the late 1970s and early 1980s, coupled with the extensive bushfires of 1983/34, heightened public awareness of environmental issues and ied Government to intensify its efforts to tstablish envirommental policies. In 1987, work was started on a National Conservation Strategy, and a draft National Environmental Protection Program was also prepared in 1987, based on priorities identified through a series of regional and district fora organized in 1986 and 1987. In 1988 Government initiated a major effort to place environmental issues on its policy agenda and the Environmental Protection Council (EPC) was charged with preparing a National Environmental Action Plan (EAP) and a statement of National Environmental Policy (NEP). EPC involved a wide range of government agencies, research institutes, NGOs and the private sector in discussions and working groups, leading to the preparation of an EAP. The EAP has been approved by the Committee of PNDC Secretaries. 1.2 The World Bank provided assistance to he EPC during the preparation of the EAP through detailed discussions and a limited amount oI onsultant help. A mission in October 1990 assisted with the completion of the final draft of the EAP and discussed ways in which further assistance could be provided for the implementation of the plar From a range of possible options it was agreed that World Bank funding could be focused on institutional support to the EPC, to enable it to fulfill its role as defined in the EAP; on the introduction of improved land management practices, to reduce land degradation which was identified in the EAP as the most important environmental problem facing the country; and on measures to improve the management of areas of importance for the conservation of biodiversity, particularly in the coastal wetlands. The core of the project is the development of an effective system for the management of environmental resources in Ghana, that will involve communities as well as government institutions in the planning, implementation and monitoring of the sustainable use of environmental resources. I. THE ENVIRONMENTAL SElTING A. Background 2.1 :M E=QnoMy. Inappropriate macro-economic policies and weak overall economic management resulted in negligible growth in the Ghanaiau economy during the 1970s. The situation worsened in the early 1980s as real GDP declined at an average annual rate of 5 percent. The adoption of the Economic Recovery Program in 1983 reversed this decline. Macro-economic adjustment and prudent economic policies, including the devaluation of the Cedi, have resulted in an annual average growth in real GDP of about 6 percent from 1983 to  1990. There has been a corresponding improvement in the balance of payments. Over the medium-term, the Government's adjustment program aims at a real GDP growth of at least 5 percent per annum, with even higher growth rates now being targeted. A significant role is envisaged for the private sector in the economy, througli investment in production, processing and marketing In all sections of the economy. 'lxis would be paralleled by divestiture of state-owned enterprises, continued liberalization of the exchange rate, rat,onalization of trade, tariff and tax policies, improved public sector management and the maintenance ef positive al interest rates to encourage investment and mobilize domestic savings. 2.2 Poulaion. The present population of Ghana is estimated to be approximately 15 million, increasing at a rate of more than 3 percent per annum with a populatior. projected to be almost 20 million in the Year 2000. Population density averages 631km2, though there are marked regional variations, from 17 persons/km2 in the Northern Region to 116 persons/km2 in the Centrai Region. Much higher densities occur locally, especially in the Upper East Region and in areas around Kumasi, Cape Coast and Accra, where densities exceed 400 persons/km2. More than 30 percent of the population lives in urban areas of 5,000 inhabitants or more. Agriculture employs more than 60 percent of the labor force. B. Envirenmental Resources 2.3 Agro-Ecological Zones. Ghana. with a total land area of 23.9 million ha, can be divided into six main agro-ecological zoi .s as shown on Map 1. Rainfall and the length of growing season for each of the zones are summarized below. Agro-Ecological Rainfall Length of Growing Period (Days) ZoE, (mm) Season Humid 1/ Growing 2/ Coastal Savanna 800 50-60 100-110 Rain Forest 2200 Major 100-120 150-160 Minor 80 100 Deciduous Forest 1500 Major 100-120 150-160 Minor 70 90 Transition 1300 180-190 200-220 Guinea Savanna 1100 120-140 180-200 Sudan Savanna 1000 90-100 151'-160 1/ Rainfall > Potential Evapotranspiration (PErT. 2/ Begins when rainfaD > 0.5 PET, ends wher. rainfal < 0.5 PET 2.4 Topgraphy. Almost the whole of Ghana lies below 500m elevation and over half is under 150 m. Undulating to flat terrain predominates, with slopes mainly less than 5 percent. Isolated valley bottoms and flood plains are flat. Despite the predominantly gentle slopes, the degradation or removal of vegetation means that about 70 percent of the country is subject to moderate or severe erosion.  2.5 Soils. The predominant soils of the forest zone kInown as Forest Oxysols and Ochrosolc (Acrisols and Nitosols 1/) are characterized by deep weathering, kaolinitic clay minerals, leaching of nutrients, and acidity. Further north, the savanna ochrosols (Nitosols) have many morphological shimiarities to the soils ^f the forest zone, but they are gekierally less leached and less acid. Their nutrient status is no better and they have less organic ma Iir in the surface horizons. Another important group of soils occurring In the savanna, the Groundwater Laterites (Plinthic Ferralsols) have much poorer physical charanteristics due to the presence of concretionary gravel, and commonly occur in a complex mosaic with very shallow soils developed over lateritic ironpan. Sandy surface horizons and low or transient organic matter content are common to most of these soils. The coastal savanna has a comnlex of heavy textured soils and within all zones, poorly drained soils occur along river valleys. Two characteristics common to most of the soils are .'particular significance: low fertility and poor water holding capacity. The low fettility resulis from the leached kaoliniti:. nature of the predominant clay minerals, compounded by the low organic matter content. Poor water holding capacity results from the sandy textures and poor structure, particularly of the surface horizons, again exacerbated by the low organic matter content. 2.6 Land Use and Land Suitability. Reliable data on land use in Ghana are not available, but the best available estimates are summarized below. They show that only about 12 percent of the land is presently cultivated, though the area of annual crops includes only the area cultivated in a particular year, and does not include the land in the present cultivation cycle, that is, the area of fallow that may be cultivated one year in three or more. Crop Area ('000 ha) Crop Area ('000 ha) Maize 2,840 Yam 2,780 Sorghum 2,780 Cassava 2,840 Rice Upland 200 Cocoyam/Plantain 140 Rice Lowland 1,880 Groundnuts/Cowpea 2,840 Cocoa 2,560 Cotton/Tobacco 2,780 Oil Palm/Rubber/Coffee 2,940 Coconut 380 2.7 An assessment of the suitability of land for the major crops grown in Ghana using principles laid down by FAO, and resource information compiled by the Soils Research Institute in the early 1970s shows that there is a potential to expand the area of any one of these crops, even assuming only the inost suitable soils are used. Ho&wever, as good lend is frequently suitable for more than one use areas derived from the data are not mutnally exclusive. 2.8 Farming Systems. Agriculture in Ghana is predominantly smallholder, traditional and rainfed. Farming systems have developed over time as adaptations to the major agro- ecological zo ies in the country at a time when population was sparse and land abundant. Commop. fact rs are the use of bush fallows to restore fertility, mixed cropping to minimize risks and the widespread integration of livestock into the farming system, particularly in the [1 Soil classes refer to the Ghana National Soil Clussification System. Equivalent nomenclature in the UNESCO/FAO Legend to the Soil Map of the World is shown in parntheses.  -4 - north. Women play an important role in Ghanaian. agricu!ture, and often make decisions about the type and area of crop to be planted, as well as having a key role in weeding, harvesting and processing. In the forest zor. tree crops, mainly cocoa, oil palm, coffee and rubber are of particular Importance. The food crops in this area are mainly inter-cropped mixtures of maize, plantain, cocoyam and cassava. The transition zone is characterized by mixed or sole cropping of maize, legumes, cocoyam or yam, with tobacco and cotton the predominant cash crops. Further north in the savanna zone, the food crops are mainly sorghum, maize, cowpea and yam, giving way in the drier areas to sorghum, millet and cowpeas. Rice is loLally important in all zones, grown in seasonally flooded valley bottoms. There is little use of purchased inputs and land preparation is manual in most areas, though ox-plowing Is Important in areas of the north. These traditional farming systems are being modified in response to increasing population, mainly through a shortening of the fallow period, with adverse effects on soil fertility, as discussed in Section C of this chapter. 2.9 Water Resour. There are abundant surface water resources in Ghana derived from the Volta catchment area, of which about 40 percent lies witdin Ghana, and from five other major river systems in the country. The estimated consumptive use in th Year 2000 is less than 5 percent of the available water, so there is clearly no shortage, in terms of the volume, of. surface water. The availability of this water for human and livestock consumption and for irrigation is more limited, because of its distribution. Water for drinking is a major constraint in many parts of northern Ghana, despite past programs for the construction of dams and water poirms. Groundwater supplies are also limited as sho% n by data from Ot xr 8,000 boreholes of an average depth of about 40 m, which indicate low yields of only two to three liters per second. 2.10 Forest ResouMrc. Ghana's forests include both tropical rain forest, deciduous forest and savanna woodlands. Deforestation has reduced the rain forest areas from about 8.2 million ha at the turn of the ventury to an estimated 2.1 million ha today. Deforestation continues at an estimated rate of 72,000 ha per annum. This is mainly due to encroachment by farmers into forested land, though it is in part due to exploitation for timber and the present annual cut far exceeds the sustainable cut of 1.1 million m3. There are about 9.4 million ha of savanna woodlands which are exploited for firewood and poles. About 2.7 million ha, or 1I perce