The World Bank Implementation Status & Results Report
Ghana Emissions Reductions Program (P160339)
Ghana Emissions Reductions Program (P160339)
WESTERN AND CENTRAL AFRICA | Ghana | Environment, Natural Resources & the Blue Economy Global Practice |
Recipient Executed Activities | Investment Project Financing | FY 2019 | Seq No: 5 | ARCHIVED on 22-Jun-2023 | ISR56580 |
Implementing Agencies: Forestry Commission, Ministry of Finance
Key Dates
Key Project Dates
Bank Approval Date: 06-Jun-2019 Effectiveness Date: 14-Apr-2020
Planned Mid Term Review Date: 31-Dec-2025 Actual Mid-Term Review Date:
Original Closing Date: 31-Dec-2025 Revised Closing Date: 31-Dec-2025
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Project Development Objectives
Project Development Objective (from Project Appraisal Document)
To make payments to the Ghana Cocoa Forest REDD+ Program (or ‘the Program’) for measured, reported and verified Emission Reductions
related to reduced deforestation, forest degradation and the enhancement of forest carbon stocks (ER payments) in target landscapes of Ghana (or
‘Program Area’), and distribution of ER payments in accordance with agreed-upon Benefit Sharing Plan.
Has the Project Development Objective been changed since Board Approval of the Project Objective?
No
Overall Ratings
Name Previous Rating Current Rating
Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory
Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory
Overall Risk Rating Substantial Substantial
Implementation Status and Key Decisions
Ghana’s Emission Reductions Program (ER-Program) for the Cocoa Forest Mosaic Landscape was selected into the Forest Carbon Partnership
Facility (FCPF) Carbon Fund in June 2017 for potentially receiving results-based payments for reducing emissions from deforestation and forest
degradation. Thereafter the Government of Ghana (GoG), supported by the World Bank (WB) developed the ER-Program further by addressing
issues raised by the Carbon Fund Participants and other requirements mandated by the FCPF prior to signing the Emission Reductions Payment
Agreement (ERPA). In July 2019, GoG [(as seller of Emission Reductions (ERs)] and the WB (as buyer of ERs in its capacity as Trustee of the
FCPF Carbon Fund)] signed the ERPA for an estimated value of US$50 million and volume of 10 million Emission Reductions (ERs).
The Program is results-based which means that Ghana will deliver the ERs through appropriate actions and measures for reducing emissions in
accordance with the program design and payments for the ERs will be made by the WB in accordance with the terms of the ERPA. There is no
upfront investment financing from the WB for program implementation and investments for generation of ERs will be the responsibility of GoG.
However, GoG requested the Trustee an advance payment in the amount of US$1.3 million as negotiated in the ERPA terms. The advance was
released in September 2020, upon fulfillment of Conditions of Effectiveness as specified in Schedule 1 of the ERPA, and upon notification of the
fulfillment of the conditions by the Trustee to the Carbon Fund Participants.
The ER program relies heavily on cocoa and forest sector stakeholders to leverage ongoing and new investments in the program area to shift action
towards sustainable production of cocoa supported by robust land use action planning and local level multi-stakeholder governance to implement
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The World Bank Implementation Status & Results Report
Ghana Emissions Reductions Program (P160339)
interventions needed to generate ERs. These include government (public expenditure), private sectors, non-government organizations and other
donor initiatives coordinated by government.
In addition, technical assistance from the World Bank through AccelREDD+ initiative supported by Government of Germany is supporting Ghana
fulfill the ERPA effectiveness conditions and enable GoG to access the results-based payments. The technical assistance ended in December
2022 and the Government will need to take full ownership to sustain the functionality of HIA level governance structures and financing for project
interventions.
Overall Implementation Progress
The Government of Ghana through the National REDD+ Secretariat (NRS) submitted its First Monitoring Report. The third-party validation and
verification of the First Monitoring Report to ascertain the volume of emissions reductions generated in the first monitoring period (June-Dec 2019)
was completed. The third-party auditors submitted their final report in July 2022 verifying the volume of ERs eligible for issuance at 972,456 tCO2e.
The WB Task Team completed its due diligence to ensure that actions related to operationalization of Safeguards and Benefit Sharing systems
were sufficiently advanced. Since the last ISR from November 2022, GoG received its first gross payment of US$4,862,280 for 972,456
tCO2e. This makes Ghana the second country in Africa after Mozambique to receive ER payments. GoG has now drafted its second monitoring
report which currently being reviewed, and third-party audit will soon be launched.
Operationalization of the framework for the Benefit Sharing. The composition and role of the Steering Committee for oversight of payment
disbursements to beneficiaries transparently and in accordance with the Benefit sharing plan has been established. The Steering committee is
chaired by the Ministry of Finance. Its membership includes representatives from the National House of Chiefs, Office of the Administrator of Stool
lands, the World Cocoa Foundation and Civil Society Organizations. This multi-stakeholder committee oversight is intended to ensure that benefits
from carbon payments are shared transparently with the eligible beneficiaries. The recruitment and training of the Steering Committee members
was completed in August 2022. The Steering Committee held two more meetings since (February and May 2023). The February meeting discussed
payment shares to each HIA as well as the fund flow mechanism. The May meeting discussed the proposals submitted by the farmer groups as
farmers groups’ benefits will be received in-kind.
The Government has validated the agreed performance criteria for benefit sharing at the decentralized levels (HIA level) for farmer groups and
community groups and shared a note of approach to be used for the first monitoring period, allowing for some flexibility given that HIAs are at
different stages of implementation. Outreach to stakeholders and beneficiaries in the program was undertaken to ensure the stakeholders and
beneficiaries are fully aware and understand the performance criteria against which payments will be made at the HIA level and to beneficiaries
within the HIA. Ghana received its first payment on January 30, 2023. The payments have yet to be distributed to the beneficiaries. It is crucial that
payment distribution to the respective beneficiary groups be shared in a timely and transparent manner. The FC and COCOBOD as lead
implementing agencies should provide clear guidance on all aspects of benefit sharing to the stakeholders to ensure smooth progress.
A few issues that the RDA should address promptly are:
- Provide complete clarity to the HMBs on the use of the two percent (2%) of farmer benefits as operation costs to HMBs. In addition, the
HMBs expectation that operational costs from the benefit sharing could be topped up further (beyond the 2%) should be managed with clear
guidance. Likewise, the operational costs for the community benefits should be discussed at the RDA meetings with due consideration of tradeoff
between benefits accruing to the beneficiaries and overhead expenses.
- Provide a rationale for the expansion of the HIC from 6 to 8 members. This is a change to what was provided in the Benefit Sharing Plan
(BSP) and the Funds Flow Mechanism (FFM) operational manual.
- Adhere to the FFM and BSP and ensure sure that all HICs have printed copies of the documents in sufficient quantities; any changes from
the agreed documents need to be carefully explained, documented, and communicated in writing to all stakeholders.
- Ensure that everyone in the HIC is aware of the procurement process as well as information flow across the various structures. Where
necessary, any changes to the processes described in the FFM should be documented with rationale for the proposed changes and communicated
to all relevant stakeholders in a timely manner.
- Prepare a roadmap for further consultations with the TAs in each HIA to fast track and transfer the benefits.
- Effect transfer of Benefits to COCOBOD and MMDAs at the earliest. Delays in transfer of benefits to the beneficiaries could affect the share
due to exchange rate fluctuations. Therefore, concerted effort and plan for action to transfer the benefits should be made following due process.
The World Bank will conduct a third-party audit once the ER payments have been disbursed and FC is expected to provide a Benefit sharing
report to inform progress on first ER payment to the WB within 6 months of transfer of payments (end of July 2023). The ToRs for the audit have
been drafted and a firm will be recruited to carry out the audit around August/September 2023.
Per information provided by government, the following key investment activities were carried out in 2022: 50 hectares of MTS plantations was done
in Asunafo-Asutifi HIA and 60,000 tree seedlings (mainly Mahogany, Emire and Ofram were distributed to farmers in two HIAs (Asunafo Asutifi and
Juabeso Bia). The distribution was mainly done through the Ghana Cocoa Board (COCOBOD) district offices. Maintenance and tendering of 950
ha of enrichment planting from 2021 was carried out in three HIAs (Sefwi-Wiawso, Asunafo-Asutifi and Ahano-Afo). The government is encouraged
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The World Bank Implementation Status & Results Report
Ghana Emissions Reductions Program (P160339)
to also how many people were engaged in the maintenance activities, including a gender breakdown. On alternative livelihood options, NRS has
engaged five civil society organizations (CSOs) to coordinate the provision of prioritized livelihoods options per HIA. As a result, 218 people have
benefitted from beekeeping, snail-rearing, ginger, vegetable and mushroom farming, and aquaculture across five HIAs.
As part of implementation of the program, HIA Governance structures have been developed for five (5) HIAs (Asunafo-Asutifi, Ahafo-Ano, Kakum,
Juabeso-Bia and Sefwi-Wiawso HIAs) and framework agreements have also been signed. Additionally, finalization of HIA constitution and By-law to
be passed by the Metropolitan, Municipal and District Assembly (MMDA) for Asunafo-Asutifi and Juabeso-Bia HIAs were done. There is now a need
to ensure sustainability of the HIA structures that have been put in place.
On private sector engagement in HIAs. Leverage of funding from the private sector is a substantial element of the ER-Program and private sector
financing was included in the original program financing plans. However, reporting of investments in the landscape by the private sector partners is
haphazard. To provide a more comprehensive picture on private sector contributions, it was agreed that a template will be developed by the NRS
for reporting by the private sector partners, which will be used on a regular basis to supplement information for the program M&E efforts. This
template will be developed by June 20, 2023. It is understood that some information is covered under confidentiality clauses and that the NRS
would not be able to verify all submissions.
Monitoring and Evaluation (M&E) Framework. Further work is still needed to refine the indicators and their corresponding baseline, targets and
results and be rendered operational.
On Safeguards system and implementation, a safeguards and capacity building training were completed for HIA leaders and stakeholders over the
past reporting period. A safeguards training was held in Kumasi from March 8-10, 2022, with WB Safeguards Specialists and participants included
staff of the NRS, safeguards Focal Points, HMB representatives, and representatives from COCOBOD, EPA, CSOs, and the private sector. The
training covered World Bank safeguards policies triggered by the Ghana ER Program, implementation requirements, and the roles and
responsibilities of stakeholders. Overall, 521 individuals (29% and 25% females respectively) benefited from the capacity building. Topics included
HIA governance structures, roles and responsibilities; HIA governance rules; safeguards and roles of HIA governance structure; gender; feedback
and grievance redress mechanism (FGRM); safeguards information system (SIS); benefit sharing plan and fund flow mechanism (BSP/FFM);
landscape management planning; and participatory project monitoring. Another workshop was also held at the Forestry Commission Training
Center (FCTC) at Akyiakrom in the Ashanti Region of Ghana (details in Aide Memoire).
Environmental and Social Safeguards implementation. The overall environmental and social safeguards performance rating is rated Satisfactory
while the program safeguards risk rating remains Moderate. In the past six months, NRS safeguards focal points have conducted and sustained
capacity building and stakeholder engagements on the safeguards policies and operations, with the support of the World Bank Team. As a result,
preparation of the ESMP and monitoring Reports for 5 HIAs except Atewa HIA have been completed and reviewed by the Bank Team and disclosed
on the program website. ESMP for Atewa needs to be prepared as soon re-engagement in underway. The safeguards implementation and
monitoring reports for the first half of 2023 will be due by July 31st.
Feedback and Grievance Redress Mechanism (FGRM). FC District Officers and COCOBOD continue to deepen awareness about the existing
FGRM to encourage its usage, improve documentation and reporting of feedback and grievances at the district-levels, given its importance in
ensuring that beneficiaries receive resolution to project related complaints. Four complaints were received and resolved within the reporting period
(January to April 2023). These reported grievances were mainly a result of illegal or unsupervised felling of trees by contractors leading to some
destruction within cocoa farms.
Second Monitoring Report. The GoG submitted the Second Monitoring Report in December 2022 and received comments from the FMT on
January 27, 2023. There has been two (2) subsequent reviews and comments were addressed and submitted in April 2023. The third sets of
comments were received and addressed and resubmitted on May 11, 2023. The draft monitoring report for the second monitoring period (2020,
2021) estimates that ERs will be delivered as estimated in the ERPA. Ghana seemingly will also maintain the ER delivery trajectory for the second
monitoring period.
Risks
Systematic Operations Risk-rating Tool
Risk Category Rating at Approval Previous Rating Current Rating
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The World Bank Implementation Status & Results Report
Ghana Emissions Reductions Program (P160339)
Political and Governance -- Substantial Substantial
Macroeconomic -- Substantial Substantial
Sector Strategies and Policies -- Moderate Moderate
Technical Design of Project or Program -- Substantial Substantial
Institutional Capacity for Implementation and
-- Substantial Substantial
Sustainability
Fiduciary -- Substantial Moderate
Environment and Social -- Moderate Moderate
Stakeholders -- Substantial Substantial
Other -- Substantial Substantial
Overall -- Substantial Substantial
Results
PDO Indicators by Objectives / Outcomes
To achieve payments for measured, reported and verified Emission Reductions in GCRF Program
IN01303680
►Volume of CO2e Emissions Reductions that have been measured and reported by the Program Entity, verified by a Third Party, and
transferred to the FCPF Carbon Fund (tCO2e) (Metric ton, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 0.00 972,456.00 10,000,000.00
Date 06-Jun-2019 01-Nov-2022 15-Jun-2023 31-Dec-2025
GoG received its first gross payment of US$4,862,280 for 972,456 tCO2e of verified and
validated emissions reductions generated during the first monitoring period (June-Dec 2019) on January
Comments:
31, 2023.
IN01303686
►Payment by the FCPF Carbon Fund for CO2 Emission Reductions generated by the Program (US$) (Amount(USD), Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 1,300,000.00 4,862,280.00 50,000,000.00
Date 06-Jun-2019 07-Jan-2021 15-Jun-2023 31-Dec-2025
GoG received its first gross payment of US$4,862,280 for 972,456 tCO2e of verified and
validated emissions reductions generated during the first monitoring period (June-Dec 2019) on
Comments:
January 31, 2023.
IN01303687
►Emission Reductions payments distributed in accordance with agreed Benefit Sharing Plan and arrangements (Yes/No) (Yes/No, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value No No No Yes
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The World Bank Implementation Status & Results Report
Ghana Emissions Reductions Program (P160339)
Date 06-Jun-2019 01-Nov-2022 15-Jun-2023 31-Dec-2025
Benefit sharing has not yet happened as per the May 2023 mission. More information will be provided in
Comments: the benefit sharing progress report that the PIU will share by July 31, 2023.
IN01303688
►Citizens reporting satisfaction with key aspects of consultation process (information available, facilities, facilitation, location, language, etc.)
(Percentage) (Percentage, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 0.00 0.00 70.00
Date 06-Jun-2019 01-Nov-2022 15-Jun-2023 31-Dec-2025
Once the benefit-sharing takes place, the PIU will need to carry out a survey to inform this indicator.
Comments:
Intermediate Results Indicators by Components
Given the nature of the Project there are no Intermediate Indicators.
IN01303689
►N/A (Text, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value N/A N/A N/A N/A
Date 06-Jun-2019 07-Jan-2021 07-Jan-2021 31-Dec-2025
Performance-Based Conditions
Data on Financial Performance
Disbursements (by loan)
Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed
P160339 TF-B2267 Effective USD 2.50 2.50 0.00 0.26 2.24 10%
P160339 TF-B2268 Effective USD 47.50 47.50 0.00 4.60 42.90 10%
Key Dates (by loan)
Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date
P160339 TF-B2267 Effective 27-May-2019 08-Jul-2019 14-Apr-2020 31-Dec-2025 31-Dec-2025
P160339 TF-B2268 Effective 27-May-2019 08-Jul-2019 14-Apr-2020 31-Dec-2025 31-Dec-2025
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The World Bank Implementation Status & Results Report
Ghana Emissions Reductions Program (P160339)
Cumulative Disbursements
Restructuring History
There has been no restructuring to date.
Related Project(s)
There are no related projects.
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