GHANA: Forest Investment Program Enhancing Natural Forest and Agroforest Landscapes Project (P148183) Virtual Implementation Support Mission May 25 – 27, 2022 Aide-Mémoire I. INTRODUCTION 1. The World Bank’s (WB) virtual implementation support mission for the Ghana Forest Investment Program (G-FIP) Enhancing Natural Forest and Agroforest Landscapes Project (ENFALP, P148183), was held between May 25-27, 2022. The mission was led by Neeta Hooda (Senior Natural Resources Management Specialist, TTL) and included: Justice Odoi (Senior Environmental Specialist, Co-TTL), Robert Degraft-Hanson (Senior Financial Management Specialist), Olamide O. Bisi-Amosun (Natural Resources Management Specialist), Patrick Ansah (Procurement Specialist), Lydia Sam (Procurement Assistant), George Amoasah (Environmental Specialist), Maclean Asamani Oyeh (Natural Resources Management Consultant), Frederick Amoako Addison (Social Development Consultant), and Charity Boafo-Portuphy (Program Assistant). 2. The objectives of the mission were to review: (i) implementation progress since the last mission in November 2021, (ii) project compliance with Bank’s fiduciary and safeguards policies; and (iii) work plan for the next six months. 3. The mission worked closely with the Ministry of Lands and Natural Resources (MLNR) management and technical staff of the G-FIP Program Management Unit (PMU), and officials from the Ministry of Finance, Forestry Commission (FC), Forest Research Institute of Ghana (FORIG), Minerals Commission (MC), and Environmental Protection Agency (EPA). The World Bank team would like to thank the project staff and government officials for their support during the mission. The list of people met by the mission is attached in Annex A and mission agenda in Annex B. II. PROJECT DATA AND RATINGS Table 1. Key Project Data (as of May 2022, in million US$) Project Data TF 14224 TF 18842 TF A9512 TF A9474 TOTAL (PP) (PF) (AF) (AF) Original 0.5 29.50 12.39 7 49.39 Amount Total 0.5 28.97 3.84 0 33.31 Disbursement (100%) (98%) (30%) (0%) (67%) Closing Date June 30, June 30, June 30, June 30, 2015 2023 2023 2023 1 Table 2. Key Project Ratings Project Ratings Previous Current Project Development Objective (PDO): To improve Satisfactory Moderately forest and tree management practices by cocoa farmers, Satisfactory CREMA communities and forest reserve managers to reduce forest loss and degradation and demonstrate rehabilitation of mined-out sites in selected landscapes in Ghana's High Forest Zone (HFZ). Implementation Progress (IP) Moderately Moderately Satisfactory Satisfactory Component 1. Policy Reforms and Institutional Satisfactory Satisfactory Strengthening. Component 2: Pilot Investments for Improved Forest Moderately Moderately and Landscape Management with Communities. Satisfactory Satisfactory Component 3. Innovation, Capacity Building, and Satisfactory Satisfactory Communications Component 4. Project Management, Monitoring, and Satisfactory Moderately Coordination Satisfactory Financial Management Satisfactory Satisfactory Procurement Management Moderately Moderately Satisfactory Satisfactory Environmental Safeguards Satisfactory Moderately satisfactory Social Safeguards Satisfactory Moderately satisfactory III. IMPLEMENTATION PROGRESS AND KEY FINDINGS 4. Project Development Objective (PDO). The PDO is to improve forest and tree management practices by cocoa farmers, CREMA communities and forest reserve managers to reduce forest loss and degradation and demonstrate rehabilitation of mined-out sites in selected landscapes in Ghana's High Forest Zone (HFZ). The Additional Financing (AF) to the Project was signed in January 2020, following approval by Cabinet (in September 2019) and the Parliament (in November 2019), and it was declared effective in February 2020, bringing an additional US$20 million for sustainable forest management in Ghana and extending the project closing date to June 2023. A restructuring was processed to merge categories of disbursement and amendment letters for TF0A9512 and TF018842 were accordingly signed on November 8, 2021. 5. Progress towards achieving Project Development Objective (PDO). The mission discussed progress towards achievement of PDO in view of the additional financing and notes that the progress on advancing the demonstration of rehabilitation of mined-out sites has been slow and poses a risk to achieving the PDO, hence rating is assessed as Moderately Satisfactory (see Results Framework in Annex 3). The Implementation Progress is also rated Moderately Satisfactory, since key activities supported under the Additional Financing have seen very little progress since the last mission (i.e., commencement of the rehabilitation work of mined-out sites and the credit line for small and medium scale private plantations development). The mission noted that PMU is awaiting certain decisions outside its direct control that are holding back implementation on the approval of the credit line (i.e., decision on the interest rates for 2 the credit line and subsequent parliamentary approval of plantation credit line). On these matters, mission recommends high-level assistance from the Ministry of Lands and Natural Resources and the Ministry of Finance for finalizing and signatures of the lending agreement. The mission set out clear next steps to facilitate the finalization of the on-lending agreement and based on the feedback from the Ministry of Finance official at the mission, it is anticipated that by the end of June 2022, the PMU would have made good headway in that respect. 6. Need for Extension of Project Closing Date: The mission was informed that due to the delays associated with the private sector plantation development loan scheme and the rehabilitation of mined-out sites, the MLNR may request a no-cost extension if it determines that additional time is necessary to complete the activities. In this regard, the MLNR will review implementation progress and based on the status of progress of the key pending activities will inform the World Bank accordingly on the need for the no-cost extension by end of July 2022 7. Component 1: Policy Reforms and Institutional Strengthening: The component supports policy and institutional change to improve the enabling environment for sustainable landscape and forest management. This targets reforms in the current tree tenure and benefit sharing regime as well as compensation for crop damage during timber harvest, and institutional strengthening to improve the coordination between government actors on the mosaic cocoa and forest landscape. Under the AF, this will also expand to policy, standards, and guidelines for mined-out site rehabilitation. The Component is on track in achieving the targets of its two intermediate results indicators (see Results framework in Annex 3). 8. Tree Tenure and Benefits Sharing: A proposed Timber Tending Benefit (TTB) regime was developed as a draft modality for implementation, following extensive consultations with stakeholders. A study on the TTB is being conducted by the timber industry actors, Forestry Commission and Civil Society. The PMU has been engaging the Team conducting the study to finalize the report and the draft report is expected to be ready by May 31, 2022, after which the PMU will conduct extensive stakeholder consultation and validation of the report. The PMU will share the draft report of the TTB study with the World Bank for comments after the validation workshop. 9. Wildlife Resource Management Bill: As part of efforts to streamline the legal backing for the establishment and operationalization of CREMAs, the PMU secured Cabinet approval for the revised Wildlife Resource Management Bill. The next step is to secure parliamentary approval for the Bill to become law. Mission was informed that the PMU and the MLNR had meetings with the Parliamentary Select Committee on Lands and Forestry; other major stakeholder engagements were also held and involved stakeholders from CSO and NGOs including Civic Response, Forest Watch Ghana, Wildlife Traders Association, Traditional Authority, Community Representatives, other Government Agencies such as the Forestry Commission. The next stage is for Parliament to undertake clause-by-clause review and necessary amendments. Mission commends the Government on this progress and the momentum created with the ongoing deliberations with the Parliamentary Committee and looks forward to Bill being enacted into law. 10. Development of guidelines for the implementation and dissemination of the Domestic Wood Supply Policy and the Wood Procurement Policy: The MLNR and the PMU worked with the Ghana Public Procurement Authority (PPA) to incorporate into the national standard tender document the requirement for the use of legal timber (public wood procurement 3 guideline) in all government projects. In collaboration with Nature Development Fund (NDF), the Timber Industry Development Division (TIDD) of the Forestry Commission, three (Southern belt, Middle belt and Northern belt) national validation workshops were held to validate the certificate of proof of legal timber. The stakeholders validated and approved the legal wood procurement certificate, and in effect, the expected output under this activity has been delivered. The Project will commence the capacity development and training of procurement entities at the national and local governance levels and other stakeholders to assist with the understanding and operationalization of the provisions of legal timber procurement. 11. Review and Document Policy Interventions Under FIP: the Project is preparing five (5) lessons learnt reports on the CREMA Livelihoods, Private Sector Engagement in the Project, Restoration of Degraded areas, Policy Reforms, and Climate Smart Cocoa Systems. The draft report for each of the five thematic areas will be available by June 30, 2022, for review, validation and knowledge sharing. The PMU will share the draft report with the Bank for comments. 12. Improve Legal and Policy Framework for Rehabilitation of Mined-Out Areas (AF): The PMU has received a draft report of a study on institutional framework for managing rehabilitation and reclamation of mined out sites. The draft report forms part of the strategic plan to guide reclamation works. Mission emphasizes the need for the reports to be shared with the Bank team and it was agreed that the PMU will share the draft report of the study with the Bank without delay after stakeholder validation. The PMU will conduct consultations and validation to guide and provide a roadmap for implementation. Other recommendation beyond the project will be mainstreamed into the national system for implementation. 13. Component 2: Pilot Investments for Improved Forest and Landscape Management with Communities: This component aims to establish and demonstrate improved forest and landscape management practices, while building the case for wider replication through field and community-based investments. Under the AF, this also includes piloting rehabilitation and reclamation of mined-out sites and piloting incentive investments and job creation in small and medium scale private plantations development, the implementation of which is delayed as discussed in paras 14 and 15 below. Nearly all activities under the Parent Project have been completed and the Project is now focusing on ensuring sustainability (e.g., maintenance of forestry interventions, financial sustainability of CREMAs). Only one activity under the Parent Project, the construction of model nursery is pending implementation. The contract has been signed, and construction is ongoing and expected to be completed by December 2022. The mission was informed that the contractor has prepared a contractor Environmental and Social Management Plan (C-ESMP) which has been shared with the World Bank for review. 14. Rehabilitation of Mined-Out Sites: A total of eight sites have been selected in two Forest Districts (Bibiani in Western North and Bekwai in Ashanti regions). Work on rehabilitation of mined-out sites is currently at the design stage. The Consultant has completed and submitted draft report on the strategic plan, design and preparation of bidding documents for the rehabilitation and reclamation of eight (8) mined out areas to the PMU. The reports have been reviewed and the consultant has incorporated input to complete and submit the final report. The mission strongly recommends that the PMU shares the reports with the Bank for its review to ensure timely incorporation of WB comments in the final report versions. The overall completion of planning and design phase is somewhat delayed and the possibility that actual work on the rehabilitation and reclamation can be completed by project closing date of June 2023 is highly dependent on the works contract being finalized and signed by August 4 2022. The PMU is encouraged to engage and collaborate with other WB projects with the EPA to build synergies and enhance complementarity also addressing the issues of small-scale mining and rehabilitation. Better coordination is also needed with the Forestry Commission on this activity to ensure that the works undertaken have ownership of the local communities and stakeholders. 15. Private Sector Plantation Development Loan Scheme: This pilot activity with an allocation of US$ 7 million is designed to provide financing incentives and technical assistance to support tree planting by small and medium-scale plantation enterprises (SMPEs). To operationalize this intervention, the Project has recruited the Agricultural Development Bank (ADB) to manage the fund on behalf of the Government. The Project has also prepared a draft on-lending agreement between the Government of Ghana and ADB and have received feedback from the World Bank to improve the agreement. A draft cabinet memorandum has also been prepared to submit the on-lending agreement to Cabinet and Parliament in line with the financial management regulations of the country. 16. The statutory processes needed to fully operationalize the loan scheme has been significantly delayed and as a result, caused a delay in the starting the loan disbursements. The key reason for the delay is due to lack of consensus on the appropriate on-lending interest rate of the loan facility. The MoF has indicated to MLNR that the proposed 7% interest rate is not competitive enough since the government would have to fully recover the investment over a specified period in order for the Government to repay the loan. The MoF is in the process of finalization a proposal with alternate interest rates to be discussed with MLNR management and PMU. . The mission recommends that the chosen interest rate should be viable financially but should also serve as the right incentive mechanism for an uptake of the crediting facility by the interested stakeholders. The PMU can also highlight the environmental benefits and other co-benefits of the green investments to help the policymakers understand the need for valuation of indirect benefits such as ecosystem services from natural resource management, including positive impacts for waste and pollution mitigation. . These benefits have been included in the report to guide the decision of the Minister for Finance on the final interest rate. The mission advised the project to further engage with the Ministry of Finance to conclude on the issue of final interest rate to be applied for on lending facility. 17. Review of National Plantation Strategy: No progress has so far been made on the review of the National Plantation Strategy. The review of the Strategy was to be led by a technical steering committee which has not been constituted and inaugurated. Once the committee is constituted and inaugurated, work will commence and would be expected to be completed in three months. The PMU should provide clear roadmap for constituting the technical committee for some progress with this activity. Although this is not an output envisaged under ENFALP, given the significance of this work to interventions on the ground, the project is supporting the Forestry Commission in this review. 18. Component 3: Innovation, Capacity Building, and Communication: The Component supports communication, capacity building, and monitoring activities to support innovation, community engagement, and provides information relevant for improved landscape management practices. 19. The Ghana Green Growth Programmatic Advisory Services and Analytics (PASA) is a series of studies and analytics being carried out by the World Bank to support the environment investment portfolio in the country. One of these studies is looking at options for CREMA 5 financial sustainability which could help feed into this activity when the study is completed. the Bank team and focal points for the CREMA Sustainability Activity under the PASA) will follow-up with PMU to explore opportunities for collaboration and synergies. The PMU has already furnished the PASA Team with all documentation leading to the establishment, operationalization and sustainability of the ENFALP CREMAs. 20. Component 4: Project Management, Monitoring, and Coordination: The Component supports project management and oversight, project monitoring and evaluation system, and wider coordination of the range of FIP-financed activities, including reporting at the international level. This component provides support to the Government on regular communication and coordination among FIP-financed interventions. 21. Project Coordination Mechanism: The PMU must enhance collaboration and oversight among various agencies engaged in implementation, and safeguards compliance including by leveraging both the Steering Committee as relevant. The PMU should ensure that implementing agencies participate actively and provide feedback on project progress in future missions. 22. Environmental and Social Safeguards: The mission reviewed progress of E&S safeguards implementation since the last mission and acknowledged that good progress has been made in building the E&S capacity of the Safeguards Focal Persons at the district level. Nevertheless, there have been delays in completing necessary safeguard instruments to guide some of the sub-project interventions. For example, the last mission envisioned completion of ESIAs and ESMPs for the proposed reclamation of mined-out sites by mid-March 2022. Yet, at the time of mission the PMU had not shared the draft reports with the Bank for review and clearance. The mission however noted that the reports have been submitted to EPA for review. To ensure efficient review process, the mission recommends that the PMU shares the draft reports with the Bank for timely inputs and feedback. The mission was informed that since the mined-out sites being considered for the reclamation interventions fall within two Forest Districts and the sites are mostly contiguous, the PMU has prepared two (2) ESIAs (one for each Forest District) with site-specific ESMPs. This approach is contrary to the Terms of Reference cleared by the Bank which required preparation of site-specific ESIAs and ESMPs for each of the proposed reclamation site. However, given the urgent need to ensure completion and compliance with the safeguards, it was agreed that the PMU will share with the Bank for its review the draft ESIAs and ESMPs to ensure they meet Bank’s requirements. 23. The mission reiterated the need for the PMU to finalize and resubmit for clearance the draft ESMPs prepared to guide forest enrichment planting, boundary planting and climate smart cocoa interventions at the district level, by incorporating feedback comments shared by the Bank. This is a key concern given district level implementation activities are ongoing, yet the safeguard instruments have not been finalized and disclosed as required by the Bank Policies. 24. The mission noted that the PMU has awarded contract for the development of a 6-acre nursery site for the Forestry Commission at Nsoatre. The facility is expected to produce approximately one million seedlings of indigenous tree species annually. The mission was informed that the subproject activity has been screened by the PMU and the contractor has prepared a C-ESMP. The screening report was shared with the Bank during the mission. The Bank will review the screening report and advise the PMU on the necessary E&S instruments to prepare. So far, the PMU indicates it has relied on the Contractor’s ESMP (C -ESMP) to 6 ensure safeguards compliance. The C-ESMP has been submitted to the Bank for review and further advice. 25. Grievance Redress: To date, the GRM has received seventy-three (73) complaints of which seventy (70) have been amicably resolved. Majority of the complaints are related to access to seedlings provided by the project. Of the three (3) remaining complaints, two (2) are related to illegal miners entering a forest reserve and one (1) is about contractual issues surrounding procurement of seedlings for the Government’s Green Ghana Project. 26. Based on the above findings, the Mission rates the Project’s E&S performance Moderately Satisfactory. 27. Financial Management (FM): The mission reviewed progress to ensure that there are no FM related challenges which will impact negatively on implementation during this crises period. Specifically, the mission reviewed the project to: (i) confirm if the project’s financial management arrangement as designed are still adequate to support implementation., (ii) confirm if the project has satisfactorily complied with the financial covenants of submitting periodic Interim Financial Reports (IFRs), (iii) confirming whether the Project has satisfactorily complied with submitting acceptable audited financial reports, (iv) follow up on 2020 management letter recommendations and FM Action Plan, (v)Discussions on upcoming 2021 audit (to avoid any delays), and (vi) review of 2022 AWP & Budget to determine fund utilization, variances and projected cashflow requirements. 28. Financial Management Systems Review and Performance: As per the original design, the financial management arrangements for the project are fully mainstreamed as part of the government’s approval and authorization and payment processes within the MLNR/FIP PMU. Consistently throughout implementation, the project has had satisfactory financial management performance rating attributed to timely actions by the PMU, Project Accountant and the Director of Finance and Project Coordinator. The financial management performance rating for the project as at date of the mission is rated as Satisfactory (S) and there has not been any adverse changes in the arrangements or are there any new identified risk which could affect the risk to use of project funds. 29. Compliance to Financial Covenants: In terms of compliance with the financial covenants of submitting acceptable financial reports including i.e., quarterly IFRs and annual audits, the project, has since inception complied fully with the covenants as stated in the Financing Agreement, although a few instances of late submission by the due date. The most recent IFR for the period ending March 2022 which was due by May 15th, 2022, was duly submitted to the Bank on May 9th, 2022, and reviewed as acceptable. With regards to the submission of audit reports, the project has generally complied with the submission of acceptable audit reports and management by the deadline dates. Reviews of all audit reports indicate that the auditors expressed unqualified opinions on the Project Financial Statements (PFS). Generally, the audits indicated that there are adequate internal controls to safeguard the assets of the project, and any issues noted in the Management Letters are often not significant or material. 30. Follow up on 2020 audit and management letter: Following our review of the audit and management letter, we observe that there were no significant internal control lapses and 7 any matters noted were not material to affect the quality and reliability of the financial statements. Additionally, the report concludes that the control environment remains reliable and provides adequate assurance on the effective use of Bank resources. The issues highlighted focused on ‘performance audit’ matters aimed at ensuring value for money and effective utilization of assets or resources provided under the project and to achieve the PDO. Additionally, the auditor noted some issues which needs to be addressed to help in strengthening the FM. The next audit due is for the year ended 2021, and this is due for submission to the WB on or latest by June 30th, 2022, and as at the date of this mission, we understand that the field work for the audit had been completed and a draft had been submitted to the PMU for review and finalization. The Project accountant assured the Bank that the audit will be completed and submitted before the due date. 31. Discussions on budget performance and utilization: Evidence available from a review of the budget and variance reports indicates that the pace of implementation with additional financing remains a challenge. Based on a review of the outstanding commitments and planned activities as per the annual work plan and an analysis of the periodic variances there is the need for better use of variance analysis as a management tool to monitor project performance. The Bank recommends that project management meets regularly to consider and analysis the causes of the variance and how best to address any, bureaucratic procurement or safeguard related issues. Based on the above, the Bank recommended that by end of the June, the PMU meets to review the 2022 Budget and if possible, consider a more realistic revision of the Budget for TTL approval. 32. Disbursements: As at the date of the mission a summary of the disbursement position is as presented below. Loan Number Allocated Cumulative Available Disbursement Amount Disbursement Funds Ratio US$ US$ US$ % TF018842 29,500,000.00 28,972,144.43 527,855.57 98 TF-A9512 12,390,000.00 3,841,000.00 8,549,000.00 31 TF-A9474 7,000,000.00 0 7,000,000.00 0 The project is expected to close on June 30th, 2023. 33. Procurement Management: Procurement activities under the FIP Project are being implemented in accordance with the World Bank Procurement Regulations. The last procurement post review was carried out in March 2022 and the overall post procurement risk rating was Moderate. Procurement performance according to the latest PRAMS in February 2022 was rated Moderately Satisfactory and project procurement risk rated Moderate. These ratings are found to be consistent with the current procurement performance outlook. 34. Procurement progress and outlook as of May 2022: A total of seven (7) procurement items were planned under the year under review, January - December 2022. Out of a total of seven (7), one (1) No. (14.28%) have been completely executed; four (4) No. (71.42%) are ongoing (contracts) at various stages; one (1) No. (14.28%) is yet to be initiated at with no contract terminated. The total cost of completed and on-going contracts to date amount to US$1,800,000.00 and one works activity yet to be initiated is estimated to be US$ 5,000,000.00. The total planned projected amount is US$ 6,800,000.00. 8 35. Procurement for Goods: A review of the procurement plan indicated that there is one (1) planned goods item with two (2) lots. One out of the two lots have been completed whiles the other is yet to be delivered. 36. Procurement for Works: A review of the procurement plan indicated that out of two (2) planned Works procurement items, one (1) No. contract is ongoing whiles the other is yet to be initiated with no contract terminated. 37. Procurement for Consulting: Out of the total number of three (3) Consulting items on the approved procurement plan, all three (3) consultancies are in progress with no contract terminated. 38. Procurement for Non-Consulting Services: There are no planned activities. 39. The outstanding activities (Works Activity): The outstanding activity yet to be initiated is reclamation of abandoned mined sites in forest reserves under works. This activity is dependent on the consultant developing the reclamation designs which is expected to be completed first week in June. The draft bidding document is ready, the bill of quantities with draft design will be submitted by the consultant first week in June 2022. The recruitment of contractor for the works reclamation is expected to begin between 2-3 week in June 2022. 40. Goods Activity: The other outstanding activity under goods is the Supply and Delivery of Vehicles (lot 2). Supplier has failed to deliver after multiple extensions and contract will be terminated. PMU will engage with Bank to come out with the most appropriate method to expedite the process. Expected completion is estimated to be August - September 2022. 41. Procurement arrangement: The arrangements since the last mission are in place. Bank Procurement team will continue to provide hands-on support and capacity training through monthly procurement clinics and other Bank procurement workshops. 42. The next implementation support mission will be held the first and second week of December 2022. IV. NEXT STEPS AND AGREED ACTIONS Responsible N° Action Description Due Date Entity Component 1. Policy Reforms and Institutional Strengthening Complete the draft report for the study on Timber 1. PMU May 31 Tending Benefit (TTB) Organize stakeholder consultation and validation of 2. the TTB Report. The Feedback of the stakeholders PMU June 14 to be included as an annex. 3. Share the validated TTB report with the WB PMU June 28 Prepare and share a plan on education and training of trainers for key agencies on the legal public 4. PMU June 10 wood procurement requirement in the PPA guideline 9 Responsible N° Action Description Due Date Entity Commence education and training of procurement 5. entities of key agencies on the legal public wood PMU July 11 procurement requirement in the PPA guidelines Share report on Review and documentation of lessons learnt on policy interventions under (five (5) lessons learnt (CREMA Livelihoods, Private 6. PMU June 30 Sector Engagement in the Project, Restoration of Degraded areas, Policy Reforms, and Climate Smart Cocoa Systems) Share the draft report of a study on institutional 7. framework for managing rehabilitation and PMU June 10 reclamation of mined out sites with the Bank. Component 2. Pilot Investments for Improved Forest and Landscape Management with Communities December 8. Complete construction works of Model Nursery PMU 31 Complete strategic plan, design and preparation of 9. bidding documents for reclamation of mined out PMU June 10 sites Sign contract for rehabilitation and reclamation PMU September 10. work on 8 selected mined-out sites 30 MoF and MLNR agree on interest rates for on PMU/MoF June 24, 11. lending facility 2022 Submit the revised draft sub-loan agreement to PMU June 10, 12. Bank for review and NO objection 2022 Sign Subsidiary Loan Agreement with Financial PMU, MoF, August 24 13. Institution that will manage the on-lending facility FI 2022 for plantation Sign first sub-loan agreement between FIs and PMU November, 14. potential SMPD 2022 15. Steps and milestone that will help achieve? Inauguration of the committee for the review of PMU June 30 15. national plantation strategy process Complete the review and validation of the PMU/FC September 16. plantation strategy 30, 2022 Component 3. Innovation, Capacity Building, and Communication 17. Continue works on CREMA sustainability PMU ongoing Complete work on the development of CREMA PMU 18. management Plans Financial Management 10 Responsible N° Action Description Due Date Entity Share the forecast for 2022 with the Bank for PMU June 30, 19. review; complete outstanding documentation of 2022 expenditures; and submit audit report Share the project financials (Disbursement) as of PMU May 31 20. May 25, 2022 Procurement Outline action plan for major outstanding activities PMU June 10, 21. and share with WB 2022 Revisit the delivery of signed contracts and take PMU June 10 22. remedial action (such as delivery of vehicles) Safeguards Share draft ESIAs and ESMPs for eight mined-out PMU June 10, 23. sites with the Bank for review and clearance. 2022 Obtain EPA permits for the proposed reclamation PMU August 26 24. works at the mined-out sites Obtain World Bank clearance of the ESIAs for the PMU August 15 25. proposed reclamation works at the mined-out sites Disclose ESIAs of the proposed reclamation works PMU and August 30 26. at the mined-out sites in-country and on the World Bank Ministry and World Bank website Revise and re-submit outstanding District level PMU June 27, 27. activities ESMPs to the Bank for review and 2022 clearance Share the Contractor ESMP on the construction of PMU May 28, 28. Model Nursery with the Bank [submitted by PMU) 2022 Other MLNR to review project progress to decide on the July 19, 29. need for a no-cost extension 2022 V. DISCLOSURE 43. The Government of Ghana has agreed to publicly disclose this Aide Memoire. 11 Annex A: List of participants during the mission Name Position/Title Contact Organization Government Officials Peter Awuah Technical Director (Mines) 0208154094 MLNR Musah Abu Juam GFIP Project Coordinator 0244362510 MLNR Tabi Agyarko Project Manager, FIP 0508311229 MLNR Joseph Osiakwan Technical Director 0208182556 MLNR Macdana Yunus Assistant Project Manager, FIP 0244024888 MLNR Daniel Nsowah Principal Planning Officer 0242836505 MLNR David Nyampong Procurement Officer 0241884207 MLNR Aminu Abdulai Project Accountant 0243388145 MLNR Joseph Appiah-Gyapong Manager, Donor Relations and Projects 0208126825 Forestry Commission (FC) Isaac C. Acquah Project Coordinator (GLRSSMP) 0206844092 Environmental Protection Agency Sheila Ashong Focal Person, GFIP 0244440476 Environmental Protection Agency Wilson Zogah Focal Person, GFIP 0244878734 Minerals Commission Kingsley Amoako Director, Crop Services Division 0505122083 Ministry of Food and Agriculture John Appah Manager, Plantations 0244290398 Forestry Services Division (FSD) Theresa A. Adjaye Assistant Manager 0263127257 Wildlife Division (WD) Valerie Fumey Nassah Manager, Planning Resource Management Support Centre (RMSC) Alberta Gotah Manager, Finance WD Christian Fumey Nassah Operations Manager, Stakeholder (FP) 0244434399 WD Richard Gyimah Director of Operation - 024642026 WD Stakeholder&Ecotourism Roselyn Fosuah Adjei Director, Climate Change FC Hugh Brown Director, Plantations FSD Kofi Affum Baffoe Director, RMSC RMSC Samuel Odei Director, Finance & Admin FC Kofi Boateng Manager, Finance FSD Hamza Iddrisu Accountant, RMSC RMSC 12 Frank Ohene-Wiafe Manager, Finance FC Emmanuel Reagan Asst. Manager FSD Atsu Fumey Nassah Manager, WD WD Adwoa Dede Brobbey Admin. Manager DR &P FC Godwin P. Cudjoe Officer, DR &P FC Kofi A. Frimpong Asst. Manager DR &P FC World Bank Team Neeta Hooda Sr. NRM Specialist WB Olamide O. Bisi-Amosun NRM Specialist WB George Amoasah Environmental Specialist WB Justice Odoi Sr. Environmental Specialist WB Robert Degraft-Hanson Sr Financial Management Specialist WB Patrick Ansah Procurement Consultant WB Lydia Sam Procurement Assistant WB Charity-Boafo-Portuphy Program Assistant WB Frederick Amoako Addison Consultant WB Maclean Asamani Oyeh Consultant WB 13 Annex B: Mission Agenda Time Activity/Session Remarks Day 1: Wednesday, May 25, 2022 GH: 13:00-14:30 Kick-off: WB, DC: 09:00-10:30  Introduction and opening remarks MLNR/PCU,  Confirmation of mission agenda Implementing Agencies Overview of progress: (IAs,) Presentation and discussions on implementation progress – Component 1:  Status of agreed actions in November 2021 Mission  Progress against PDO and Intermediate Results Indicators  Update on 2022 Work Plan Component 2 – Original : WB Team,  Status of agreed actions in November 2021 Mission MLNR/PCU,  Progress against PDO and Intermediate Results Indicators IAs  Update on 2022 Work Plan 10-minute health break GH: 14:40-16:00 Component 2 – Additional Financing (AF) : WB Team, DC: 10:40-12:00  Rehabilitation of Mined-Out Sites. MLNR/PCU, - Status of agreed actions in November 2021 Mission IAs - Progress against PDO and Intermediate Results Indicators - Update on 2022 Work Plan  Private Sector Plantation Development Loan Scheme - Status of agreed actions in November 2021 Mission - Progress against PDO and Intermediate Results Indicators - Update on 2022 Work Plan Day 2: Thursday, May 26, 2022 GH: 13:00-14:30 Component 3 WB Team, DC: 09:00-10:30  Innovation, Capacity Building, and Communication MLNR/PCU, Component 4 IAs - Safeguards: Environmental and Social Safeguards 10-minute health break GH: 14:40-16:00 - Procurement Management WB Team, DC: 10:40-12:00 - Financial Management MLNR/PCU, IAs Presentation of the Results Framework Day 3: Friday, May 27, 2022 GH: 13:00-15:00 - Project Monitoring and Coordination WB Team, DC: 09:00-11:00 - Mission Wrap-up and agreement on next steps MLNR/PCU, IAs 14 Annex C: Updated Results Framework as of June 2021 These results are at Project Level Project Development Objective Indicators Cumulative Target Values Indicator Name Baseline June June June June 2022 End Target June 2016 2017 June 2018 June 2019 2020 June 2021 2015 Indicator One (Core): People in forest and 0 35,000 48,777 68,543 85,779 88,681 97,112 100,312 106,000 adjacent communities with monetary/non- monetary benefits from forest (Number)  People in forest and adjacent community with 0 17,334 28,965 39,509 48,150 49,358 52,725 54224 53,000 benefits from forest-female (Number) Indicator Two: 0 0 10,000 80,661.34 80,661.34 80,661.34 80,661.34 80,000 Area under improved CREMA management or 80,661.34 climate smart cocoa management practices in targeted landscapes due to Project intervention (ha)  including under CREMA management (Hectare 0 0 10,000 80,661.34 80,661.34 80,661.34 80,661.34 80,661.34 80,000 (ha)  including under climate smart cocoa management 0 0 10,000 28,571 33,692 37,278 40,000 practices (Hectare (ha) 42,512 43,613 Indicator Three: 303,885 n/a n/a 304,753.07 n/a n/a 363,387.60 363,387.60 417,518.00 Area of forest in targeted landscapes (Hectare (ha)  including closed forest 132,312 n/a n/a 131,121.19 n/a n/a 152,408.62 152,408.62 139,298  including open forest 171,573 n/a n/a 173,631.88 n/a n/a 210,978.98 210,978.98 278,220.00 Indicator Four: 0 n/a n/a 1,038,262 n/a n/a 4,887,311.30 4,887,311.30 4,628,548.00 Total greenhouse gas emissions reductions plus enhancement of carbon stocks, estimated in tons equivalent CO2e/year  including greenhouse gas emission reductions 0 n/a n/a 484,454 n/a n/a 2,282,976.03 2,282,976.03 2,279,534.39 Closed Forest Open Forest 973,322.60 0 362,189 2,514,101.52 2,514,101.52 15  including enhancement of carbon stock 0 n/a n/a 90,233.74 n/a n/a 90,233.74 90,233.74 1,375,691.00 TCO2e/year open forest CREMA Indicator Five (Core): 0 2,110 4,352 6,711 9674 11,148 12,501 Direct project beneficiaries (Number) 11,725 12,227  Female beneficiaries (Percentage) 0 45 46 48 52.3% 51.9% 51.71 49 51.82 Indicator Six (Core): 0 n/a n/a n/a n/a 0 0 5 Number of mining sites that have been 0 rehabilitated (Number) . Intermediate Results Indicators Cumulative Target Values Indicator Name Baseline June June June 2018 June 2019 June June 2021 End Target 2016 2017 2020 Component 1. Policy Reforms and Institutional Strengthening Indicator One (Core): No Yes Yes Yes Yes Yes yes Yes Reforms in forest policy, legislation or other yes regulations supported (Yes/No) Indicator Two (Core): 0 23 23 23 23 27 30 Government institutions provided with capacity 30 30 building to improve management of forest resources (Number) Component 2. Pilot Investments for Improved Forest and Landscape Management with Communities Indicator Three: 5 Community based natural resources management 0 0 1 5 5 5 5 institutions provided with access to improved 5 management practices for sustainable landscape management (Number) Indicator Four: 0 50 450 2430 4,234 4,546 3,500 Farmers / participants provided with capacity 4,696 4946 building support to improve management practices for tree planting or nurseries (Number)  including female (Number) 0 33 283 1023 2,189 2,394 2,454 2552 1,750 Indicator Five (Core): 0 50 5,250 8,000 14,009.89 14,009.89 14,009.89 14,009.89 17,100 Area restored or re/afforested (ha) 16 · Area restored (ha) [through enrichment planting] 0 5,000 10,432 12,944.89 12,944.89 12,944.89 12,944.89 12,500  Area re/afforested (ha) 0 50 250 1,065 1065 1065 1065 1065 4,600 Indicator Six: 0 25 325 3,865 4100 4,648 6,141 6500.00 Farmers / participants in targeted landscapes 5,591 reporting satisfaction with service delivery or benefits received under the Project (Number)  Including Female (Number) 0 15 190 1443 1833 2103 2,611 2,931 3250.00 Indicator Seven (Core): 0 0 10,000 80,661.34 80,661.34 80,661.34 80,661.34 80,000 New areas outside protected areas managed as 80,661.34 biodiversity-friendly (ha) Component 3. Innovation, Capacity Building and Communications Indicator Eight (Core): 0 100 500 2,360 4,467 4,937 5,422 5,422 4,500 Forest users trained (Number)  Forest users trained – Female 0 60 310 956 2,137 2,311 2,606 2,606 2250 Indicator Nine: 0 60 150 380 500 600 765 550 Government officials / extension agents and 675 service providers trained (Number)  including female 0 18 48 98 185 235 246 266 220  including agricultural / cocoa extension agents / 0 18 45 124 180 200 200 240 180 service providers  including local government officials 0 6 15 36 60 80 80 90 70  including Forestry Commission staff 0 36 90 220 260 320 395 475 300 17 Annex D: Status of Agreed Actions from the November 2021 Implementation Support Mission Responsible Status N° Action Description Due Date Entity Component 1. Policy Reforms and Institutional Strengthening Complete draft report for New date provided in the 1. the study on Timber PMU March 31 agreed actions. Tending Benefit Organize stakeholder New date provided in the consultation and agreed actions. 2. PMU April 30 validation of the TTB Report Submit Wildlife The Wildlife Bill has been 3. Resource Management PMU December 17 submitted to Parliament. Bill to Parliament Formally include the completed public wood procurement guideline 4. PMU February 28 into the national tender document for public procurement Organize education and New date provided in the awareness creation agreed actions. sessions for the public on 5. PMU April 30 PPA amendment guidelines on public wood procurement Component 2. Pilot Investments for Improved Forest and Landscape Management with Communities Sign contract for Contract has been signed, the 6. construction of model PMU, FC January 31 Contractor is on site and work nursery is ongoing. Complete civil works on Work is ongoing. 7. the construction of PMU June 30 model nursery 18 Responsible Status N° Action Description Due Date Entity Work is ongoing. The Complete strategic plan, Consultants requested for a 8. design and preparation PMU April 30 two-week extension to finalize of bidding documents the output. New date provided in the agreed actions. Organize an internal WB/PMU February 15 Pending stock taking on the 9. progress of design and reclamation activities Sign contract for design PMU This activity has a mandatory of reclamation work on 8 dependency on the finalization 10. selected mined-out sites of the study and designs for reclamation. Sign Subsidiary Loan PMU, MoF, April 15 New date provided in the Agreement with FI agreed actions. Financial Institution that 11. will manage the on- lending facility for plantation Submit draft sub-loan PMU, FI January 31 Submitted 12. agreement to Bank for review and NO Sign first sub-loan PMU May 15 Mandatory dependent on the agreement between acceptance of the on-lending 13. Government of Ghana agreement. and potential SMPD Complete the review of PMU/FC New date provided in the 14. national plantation agreed actions. strategy Component 3. Innovation, Capacity Building, and Communication Complete the production PMU December 31 Completed. 15. of documentary on CREMA 19 Responsible Status N° Action Description Due Date Entity Share action plan for PMU Immediate Completed. 16. implementation under this component Continue works on Immediate Continuous. 18. CREMA sustainability Financial Management 19. Move activities that PMU Immediate Completed. cannot be completed by December 2021 to the 2022 workplan and send to TTLs for review and clearance. 20. Share a breakdown of PMU Immediate Completed. outstanding balances from agencies ($3.2M?) with the Bank. 21. Update financial PMU Immediate Completed spreadsheet to include a column of comments (remarks) on expenditures so that the project financial statement is easier to understand. 22. Finalize the September PMU Immediate Completed 2021 IFR by updating the budget data and submit for review and used to document outstanding amounts. 23. Prepare and submit for PMU Immediate Completed Bank review the 2022 Annual Work Plan & Budget as a basis for further drawdown for 2022. 20 Responsible Status N° Action Description Due Date Entity Procurement Management Organize refresher WB Jan. – June completed courses on procurement 2022 (monthly management for the procurement 25. client in anticipations of clinics) any procurement-related challenges. Safeguards Share an Action Plan to PMU November 25 completed address non-conformity with safeguards 26. requirements identified in the safeguards audit report. Prepare ESIAs and PMU March 31 The ESIA study is ongoing. 27. ESMPs for five mined- The EPA is reviewing the out sites. Reports Share all ESIAs and PMU April 20 The ESIA study is ongoing. Reclamation Plans with The EPA is reviewing the 28. EPA for review, Reports approval and permitting Revise and re-submit PMU February 28 Additional information outstanding ESMP to the inventory on species and their Bank for review and conservation status have been 29. clearance completed. The output is being used to improve the District Specific ESMPs. Sign contract on ESIA PMU Immediate Contract signed. The EPA is 30. and ESMP for Mining reviewing the Reports rehabilitation activities submitted by the Consultant Other 31. Share mission PMU Immediate Completed presentation (progress 21 Responsible Status N° Action Description Due Date Entity update, FM etc.) with the WB team Submission of revised PMU December 1 Completed 32. annual work plan for NO Convene follow-up PMU & WB January 15 Completed 33. meeting to go over status of Agreed Actions 22