PROJECT INFORMATION DOCUMENT (PID)
ADDITIONAL FINANCING
Report No.: PIDA3970
Project Name Additional Financing Sustainable Land and Water Management
(P132100)
Parent Project Name Sustainable Land and Water Management (P098538)
Region AFRICA
Country Ghana
Sector(s) Agricultural extension and research (35%), General agriculture,
fishing and forestry sector (25%), Public administration-
Agricultur e, fishing and forestry (20%), Public administration-
Water, sanitation and flood protection (20%)
Theme(s) Land administration and management (54%), Water resource
management (35%), Biodiversity (11%)
Lending Instrument Investment Project Financing
Project ID P132100
Parent Project ID P098538
GEF Focal Area Multi-focal area
Borrower(s) Ministry of Finance
Implementing Agency Ministry of Environment, Science, Technology and Innovation
Environmental Category B-Partial Assessment
Date PID Prepared/Updated 20-Mar-2014
Date PID Approved/Disclosed 31-Mar-2014
Estimated Date of Appraisal 31-Mar-2014
Completion
Estimated Date of Board 27-May-2014
Approval
Decision
I. Project Context
Country Context
Ghana has experienced rapid economic growth over the past several years resulting in substantial
progress in reducing income poverty. GDP growth rose from 8% in 2010 to close to 14.5% in 2011,
making Ghana’s economy one of the fastest growing on the continent. By 2012, Gross National
Income per capita reached US$1,940, reflecting Ghana’s middle-income status. Poverty has been
declining steadily, as reflected in the number of people classified as poor, which dropped from
about 8.0 million (i.e. slightly over 50% of the population) in 1992 to 6.3 million in 2006 (less than
30% of the population). However, inequalities remain widespread in Ghana, and are reflected in
significant disparities in access to economic, social and political opportunities. The northern
Savannah regions (with 25% of the country’s population) registered an average poverty rate of
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58%, compared to 19% in the rest of the country.
Despite these economic gains, recent macroeconomic instability is putting at risk the gains in
poverty reduction achieved. The fiscal deficit reached 12% of GDP in 2012 and 10.9% in 2013,
and the current account deficit reached 13% of GDP in both years. The government tackled the
fiscal imbalances by raising fuel prices as well as electricity and water tariffs, by around 60% in late
2013. The inflationary impact of the adjustment was reinforced by the Cedi deprecation. Hence the
higher prices imply a lower income in real terms, which has the risk of pushing many of the near-
poor families into poverty. Macroeconomic crises affect disproportionately more the poor members
of the society. Hence, any socially responsible macroeconomic policy should be aimed at
mitigating the risks that originate macroeconomic crises, i.e., excess spending, price interventions,
and reliance on natural resource revenues.
Sectoral and institutional Context
Ghana lies in the Sahelian semi-arid belt and represents the tropical dry forest biome. Its
ecosystems are characterized by the tropical dry climate of the Sudan-Sahelian zone. The country is
divided into six agro-ecological zones defined on the basis of climate, reflected by the natural
vegetation and influenced by the soils. These zones are namely, Sudan, Guinea and Coastal
Savannas, the Forest-Savanna Transitional, the Semi-deciduous Forest and the High Forest zones.
Notably, the three northern regions are highly vulnerable to environmental degradation and climate
change due to its geographic location and the dependence of its population on rain-fed agriculture
and transhumance systems.
Agriculture represents 22.7 percent of GDP and agricultural land use accounts for more than 50 per
cent of all land use, which currently decreasing. It provides employment for an estimated 50.6
percent of the population as at 2012, particularly women (53 per cent of whom are employed in
agriculture). It contributes to insuring food security, provides raw materials for local industries,
generates foreign exchange, and provides employment and incomes for most of the population
(especially those living in the rural areas), thereby contributing to poverty reduction. It is also an
important source of raw materials for the manufacturing industry.
The rapidly expanding population exerts pressure on the narrow and diminishing natural resource
base, and leads to increasing land-use conflicts. Area expansion and agricultural practices are
placing a significant pressure on available natural resources.
Land degradation continues to increasingly affect land resources in Ghana, including agricultural
lands, forests, natural habitats, and waterbodies. According to the government’s National Action
Program to combat Drought and Desertification, the land area prone to desertification has almost
doubled in the last decades. Land degradation is economically significant. A recent study (World
Bank Ghana Country Environmental Analysis, 2006) estimated soil erosion to cost around 2 percent
and forest degradation to cost about 5 percent of the national GDP. Unsustainable farming practices
(particularly the traditional bush-fallow system) and removal of vegetation cover (mainly through
deforestation, overgrazing and bush burning) are the main proximate causes of land degradation in
Ghana.
Further, in Ghana there is a visible developmental gap across the North and South of the country
where the southern coastal and forest zones (both urban and rural) have been the epicenter of rapid
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poverty reduction, in contrast to the north which remains under-developed. The Northern region is
landlocked and in comparison with the South, its geographic locale brings less rainfall, greater land
and soil degradation, and a pre-disposition to droughts and floods. This forces agricultural
households to adopt low-risk and low-input strategies, creating a virtual cycle of poverty. Despite
attempts to remedy the situation, the decline in poverty still has not been equally spread
geographically, and the poor in Ghana therefore, continue to be concentrated in the Northern
Savannah Ecological belt. Bridging this developmental gap has been a long-stated goal of most
post-independence Governments of Ghana.
Climatic conditions in the country are changing and have become a threat to sustainable
environmental management and livelihoods. Drought and floods in parts of the three northern
regions of Ghana has become a recurring phenomenon to the people and environment. The
country’s harsh and deteriorating climatic conditions combined with its high demographic growth
rate jeopardize the impact of initiatives to reduce poverty, endanger food security and accelerate
environmental degradation.
Total land area of Ghana is about 23.85 million hectares. At the beginning of the last century, about
one-third (i.e. 8.2 million hectares) of the area was covered by high forest while the remaining two-
third (15.7 million hectares) was savanna woodland (Owusu et. al., 1999). The area of high forest
(off reserve) has drastically reduced and the only remaining portions today are mainly in protected
areas. Records show that at the turn of the last century, Ghana had about 8.8 million ha of primary
forest. By 1950, the area had been reduced to 4.2 million ha and further to about 1.5 million ha by
1999 (Owusu et. al., 1999). This implies that from 1900 to 1950, the nation lost 50 per cent of its
primary forest cover and also lost 60 per cent of it between 1950 and 1999. On a 100 year scale
(1900 to 2000), the nation lost over 80 per cent of the closed forest (a reduction from 8.8 million ha
to 1.5 million ha). Farrhead and Leach (1998) estimated the deforestation rate to be a massive
22,000ha per year around the late 90’s. Recent average annual deforestation rate is 1.82 per cent or
at 135,395 ha per annum (FAO, 2010).
Forests in Ghana are representative of the dry forests of Africa. Ghana’s forests make up part of the
Guineo-Congolean phytoecological region. Forests broadly fall into two vegetation zones, each
with different ve getation and forest types, the High Forest Zone covering 34 per cent and the
Savannah Zone covering 66 per cent of the land area. Total protected forest area is about 2.5
million ha in 266 gazetted Forest Reserves (FRs). The Savannah Zone covers 14.7 million ha of
woodlands and includes some 0.88 million ha of reserves, of which Mole National Park alone is
about 0.5 million ha. There are 68 gazetted forest reserves with a total area 6,175.09sq (617,509 ha)
in the three northern regions of Ghana.
According to Nsenkyire (1998), the main causes of deforestation and forest degradation in Ghana
are (i) forest clearance for cocoa and food crop farms and (ii) logging (both legal and illegal).
Illegal logging is a major cause of deforestation, depriving the Ghanaian economy of fibre, legal
employment and tax revenues. Clearance of forest for agriculture is the leading cause of
deforestation not only in Ghana but in the whole of Africa (FAO 2003). Declining soil fertility has
resulted in extensive system of crop production to meet food security needs. Other causes of
deforestation are shifting cultivation, bush fires, harvesting of fuel wood, human settlements and
overgrazing. Conversion of forest lands for industrial activities or infrastructural development is
another cause of forest loss. Examples include forest clearance for mining, industrial development,
building of stadia, schools and other large infrastructure projects.
Biodiversity and Protected Areas. Ghana serves as an important area for faunal migration. While
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several endemic species remain, some of Ghana’s threatened species include Roan antelope,
Harterbeast, Side Strip Jackel, Buffalo, White and Black Colobus monkeys. Ghana has several
national parks and resource reserves: name some key ones Gbele, Mole, Bui, Digya, Kakum,
Kyabobo, Ankasa Conservation Area, Shai Hills Resource Reserve, Bia, and Boabeng-Fiema
Monkey Sanctuary.
Forestry, agriculture, and biodiversity conservation are interrelated and dependent on each other,
which calls for a holistic, landscape approach to land and forest management. Therefore a win-win
vision for the environment and regional economy is to turn floodwaters into a productive asset
through investing in flood control whilst exploiting green drivers of growth compatible with
improved watershed management. This would need to be supported with appropriate commercial
and social infrastructure. Tree crops are identified as a key economic driver, and thus the potential
for additional agricultural diversification and nature-based tourism need to be recognized for better
land management. In addition, land provides habitats for biodiverse species. Due to wildlife
requirements for water and to historical patterns of development that avoided river banks previously
infested with onchocerciasis, natural habitat corridors centered along rivers form biodiversity
corridors linking Mole National Park and Gbele Resource Reserve (GRR) with protected areas in
Burkina Faso. Sustainable land management of the surrounding watersheds is thus key to
supporting the continued survival of these riparian corridors, which in turn are critical to the
hydrological services provided by the watershed as a whole, and form flood protection buffers
along the main Volta tributaries flowing into Ghana from Burkina Faso.
II. Proposed Development Objectives
A. Current Project Development Objectives – Parent
Project Development Objective is:
To (a) demonstrate improved sustainable land and water management practices aimed at reducing
land degradation and enhancing maintenance of biodiversity in selected micro-watersheds, and (b)
strengthen spatial planning for identification of linked watershed investments in the Northern
Savannah region of Ghana.
Key Indicators for PDO:
- Area of land in selected micro-watersheds under new sustainable land and watershed management
(SLWM) technologies (ha);
- Management effectiveness according to METT score in Gbele Resource Reserve and Wuru Kayero
and Wahabu Wiasi corridor sites (score, disaggregated);
- Pre-feasibility studies conducted for new large-scale multipurpose water storage investments
(number)
III. Project Description
Component Name
Component 1 - Capacity Building for Integrated Spatial Planning
Comments (optional)
Component 1 is currently undertaking activities that will lead to improved spatial planning to
address land and water management needs. This Component will receive no additional funding
under AF.
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Component Name
Component 2 - Land and Water Management
Comments (optional)
Comp. 2 will continue support to implementation of SLWM technologies which would lead to
enhancement of soil productivity, of ecosystem services, and increase in agricultural productivity
Component Name
Component 3 - Project Management and Coordination
Comments (optional)
Component 3 supports project coordination, monitoring, and supervision of the various stakeholders
involved in the project implementation, including under Additional Financing.
IV. Financing (in USD Million)
Total Project Cost: 13.25 Total Bank Financing: 0.00
Financing Gap: 0.00
For Loans/Credits/Others Amount
Borrower 4.50
Global Environment Facility (GEF) 8.75
Total 13.25
V. Implementation
The institutional and implementation arrangements remain largely as originally established, with
MESTI providing overall project management and coordination leadership, EPA leading the PES
aspect of SLM and providing cross-sectoral technical support, MoFA leading the watershed
planning and implementation of SLWM activities in agricultural landscape, and FC leading
planning and implementation of SLM in non-agricultural landscapes. Under AF, the Forestry
Commission will engage its Forest Services Division (FSD) to implement the newly added
sustainable forest management activities under. SADA will complete its role implementing SLWMP
Component 1 once it concludes its activities under the original grant.
VI. Safeguard Policies (including public consultation)
Safeguard Policies Triggered by the Project Yes No
Environmental Assessment OP/BP 4.01 ✖
Natural Habitats OP/BP 4.04 ✖
Forests OP/BP 4.36 ✖
Pest Management OP 4.09 ✖
Physical Cultural Resources OP/BP 4.11 ✖
Indigenous Peoples OP/BP 4.10 ✖
Involuntary Resettlement OP/BP 4.12 ✖
Safety of Dams OP/BP 4.37 ✖
Projects on International Waterways OP/BP 7.50 ✖
Projects in Disputed Areas OP/BP 7.60 ✖
Comments (optional)
Potential negative social and environmental impacts of activities are expected to be minor. In
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general, environmental and social impacts are expected to be highly positive as the overall aim is to
improve land, water and natural habitat management through technologies which benefit
participating communities and individuals.
VII. Contact point
World Bank
Contact: Martin Fodor
Title: Senior Environmental Specialist
Tel: 5337+4166 /
Email: mfodor@worldbank.org
Borrower/Client/Recipient
Name: Ministry of Finance
Contact: Emmanuel Adjetey
Title: Head, World Bank Unit, Ministry of Finance
Tel: 233244973278
Email: EAdjetey@mofep.gov.gh
Implementing Agencies
Name: Ministry of Environment, Science, Technology and Innovation
Contact:
Title:
Tel:
Email:
VIII. For more information contact:
The InfoShop
The World Bank
1818 H Street, NW
Washington, D.C. 20433
Telephone: (202) 458-4500
Fax: (202) 522-1500
Web: http://www.worldbank.org/infoshop
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