Prqjectrde,,tinc"tio,, Enterprise Development of the Timber Industry in Ghana. ITTO Project PPD 63/02 Rev Forestry Research Institute of Ghana

Transcription

1 INTERNATIONALTROPICALTIMBERORGANISATION ITTO ~ \ - Poject Completion Repot,^ Pqjectde,,tinc"tio,, Title Investment Pomotion and Entepise Development of the Timbe Industy in Ghana ~ ~ Seial Numbe ITTO Poject PPD 63/02 Rev 100 Executing Agency Foesty Reseach Institute of Ghana Host Govenment Govenment of Ghana,^ Stating Date Mach 2003 Actual Duation (Months): Twelve Months Actual Poject Costs (Us $): 56,148 I~

2 PART I: Executive Summay I BACKGROUNDlNEORMATIONABOl ITTHEPROJECT Pe-poject situation Ghana's Foesty and Foest Industies suffeed a downtun in the 1970's and 80's leading to a sevee decline in timbe poduction and expots The Govenment initiated an Economic Recovey Pogamme (ERP) in the inid-1980's to evamp and ehabilitate all sectos of the economy, including the timbe industy, with the suppot of bi-lateal and multi-lateal donos All amount of appoximately Us $142 million was injected into the timbe industy to facilitate the acquisition of new equipment and machiney to enhance poduction efficiency As a esult of the invesiments, wood expots eanings ose fom Us $15 million in 1983 to Us $200 million in 1995,- About 55% of the investments went into impoving the pimay pocessing capacity, while 339'0 and of the funds wee invested in the seconday and tetiay pocessing sectos of the industy The investments led to an incease in the numbe and efficiency of pimay pocessing plants (hoizontal gowth) athe than an expansion in the downsteam o value-added pocessing capacity (vetical gowth:i of the industy Detailed investment analysis and entepise development studies wee not done pio to the massive injection of capital into the timbe industy theeby leading to uncontolled expansion and the cuent bleak futue fo some oganizations, which benefited fom the scheme This pe-poject theefoe aims at undetaking a citical evaluation of investments in the timbe industy with a view of helping manages; decision makes and policy makes fomulate appopiate stategies to ensue the sustainable development of wood-based entepises The poject will also examine ways in which poblems associated with ove capacity of the timbe industy can be addessed Specific objective and Outp"ts The poject had two specific objectives and six outputs The specific objectives wee to analyse the ove-capacity in the Ghana wood industy secto and to develop an investment pomotion and entepise scheme fothe wood industy The outputs wee as follows: I~ I Factos influencing ove-capacity in the Timbe industy assessed 2 Capacity of foest esouce base to suppot inceased investments in the timbe industy assessed 3 Policy, legislative and SOCio-political famewoks fo sustaining the esouce base and investment inflows into the timbe industy eviewed 4 Constaints of timbe industy to attact and sustain investments identified 5 Timbe industy capacity needs and institutional equiements analysed 6 Stategic eview of timbe industy development stategy and action plans done 2

3 Stategy Adopted The poject adopted paticipatoy methodologies, which included inteviews, consultation, wokshops and desk studies Inteview I~ Foty espondents wee inteviewed These included ten decision-makes fom five govenment institutions and thity fom selected entepises in the timbe industy (Made up of fifteen managing diectos and fifteen foest manages) Random sampling was used to selectthese entepises ~ Consultations wee held with ten individuals in policy-making positions in both the Foesty Commission and Ministy of Land and Foesty Desk studies Limited analyses of financial statements of existing entepises wee conducted Financial statement of ten existing fims wee analysed to daw conclusions on intenal stengths and weaknesses of the timbe industy at the entepise level Limited statistics on foeign diect investments was obtained fom the Ghana Investment Pomotion Cente wee also analysed Study eviews wee also conducted Thity publications and newspape epots wee eviewed ^ I~ Stakeholde consultative wokshop was held to discuss the way fowad fothe timbe industy Poject duation and oveall cost The poject oveall cost was Us $56,148 InO povided 888% of the total cost while the govenment of Ghana povided the est(i e 112% of the total cost) Specific secto elated to the poject The poject elates to the foesty secto at the county level The Ministy of Lands and Foesty is the umbella institution that oveseas policies egading management offoestesouces in the county The Foesty Commission (FC), which diectly falls unde the Ministy, has the mandate to ensue sustainable development and management of foest and wildlif^ esouces and optimise thei contibution to national socio-economic development Thee ae thee divisions unde the Foesty Commission namely Foest Sevices Division, Wildlife Division and Timbe Industy Development Division The implementing agency, Foesty Reseach Institute of Ghana, which is one of the thiteen institutes of the Council fo Scientific and Industial Reseach (CSIR), is also mandated unde Acts 405 and 453 of 1964 and 3

4 1993 to cay out foesty eseach in Ghana The foesty secto contibutes significantly to the socio-economic development of Ghanaian economy The secto contibutes about 6% of Ghana'stotal Goss Domestic Poduct (GDP), accounts fo about 119'0 of the county's total expot eanings It also povides diect employment to ove 100,000 people and indiect employment to ove 25 million Ghanaians who deive a inzno popotion of thei cash income fom the sale and utilisation of timbe and non-timbe foest poducts The foesty secto is linked to the agicultual, industy and financial sectos of Ghana's economy Developments in these sectos affect the development of the foesty secto I 4

5 2 PROJECTACHIEVEMENTS The poject made significant achievements towads the ealisation of the objectives Among the achievements ae the following; poject Outputs Achieved O"4p"tl I FCCtos jay'i"e"ci"gove-ccp"city i" the Timbe inof"sty assessed Diagnosis of timbe industy ove-capacity was conducted though industy ound inteviews and a desk study Thity managing diectos and foest manages of selected timbe mills wee consulted to know thei views on the easons fo the ove capacity in the timbe industy In addition esults of pevious studies addessing simila issues wee eviewed Repot on the impact of policy, legislative and institutional stuctues that the govenment has put in place to solve the ove-capacity poblem in the timbe industy have been poduced Policies such as competitive bidding fo timbe ights, salva e felling and institutional stuctues such as log tacking systems wee assessed to know thei impacts on the ove-capacity poblem in the timbe industy Synthesis of consultations held with the Ghana Timbe Association (GTA), Ghana Timbe Oganisation (GTMO), Foesty Commission (FC) and membes of foest dependent communities to discuss issues facing the timbe industy have been poduced O"4p"t12 eso"ce base to s"ppoti"ce"sed investme"ts in the timbe ind"sty CSSessed Using the 1996 National Off-Foest Reseve (OFR) inventoy and the 2002 National Timbe Inventoy epot, the sten numbes of species that could be extacted fom poduction eseves pe yea was detemined Logging esidue geneated by the timbe industy was assessed though a desk study to exploe the possibility of pocessing it fo utilisation by the timbe industy Review of pevious studies and a desk study wee used to identify potential aeas in the timbe industy investos can invest based on the availability of esouces O"tp"t/ 3 Policy,!egisl"tie""of SOCio-I, ontic"11"mewoks/os"st"tinting the eso"ce b"se wind tmvestme"t i,!/lows tinto the timbe i"of"stn, eviewed The 1994 Foest and Wildlife Policy, 1996 Foesty Development Maste Plan, Foesty Commission (FC) epots, Ministy of Land and Foesty (MLF) epots and othe elevant documents wee eviewed 5

6 The extent to which the me!jo stakeholdes paticipated in policy fomulation and decision making was assessed though consultation and inteviews with the int\10 stakeholdes Issues that need to be addessed to efon the timbe industy and make it moe investo fiendly wee identified though the use of inside infonnation and consultations with managing diectos of five lage-scale mills and ten small-scale mills O"4p"t2 I Coinst"jints of timbe tmd"st, y to ", tact""ofs"stain investments Meit;/ied Investment constaints in the timbe industy have been identified fom inteviews with some industy paticipants Issues elated to investment impacts wee identified though consultations with industy paticipants and eview of pevious studies L_ Key factos influencing investment appaisal decisions wee identified and discussed though inteview with some industy paticipants O"4p"t22 Timbe inof"sty CCP"city meeds""dimstit"tio""ieq"ieme"ts cm"bised Timbe industy peception about policy and sustainable foest management was obtained though discussions with key industy playes, Stategy options adopted by the wood industy in the light of these peceptions wee also examined though a desk study Oganisational and opeational levellimitations wee identified though a desk study Also, Institutional weaknesses in the egulation of the foest industy and the timbe industy institutional needs wee identified and documented O"tp"t23 Stategic eview of timbe inof"st, y developme"t stategy cmd getio" pm"s do"e Stategic management challenge in the wood industy was examined though a desk study A logical famewok poject planning and implementation was also developed to facilitate consistency between poject objectives, pupose, esults and the vaious activities that may ente pojectimplementation A consultative wokshop involving hunded industy paticipants was held to discuss the way fowad fothe timbe industy Specific Objective(s) Achieved The poject specific objectives, which wee to analyse the ove-capacity in the Ghana wood industy secto and to develop an investment pomotion and entepise scheme 6

7 I _,^ -' I_ fo the wood industy, wee achieved to a geate extent The fist objective was achieved though outputs 11, 12 and 13 The extent of ove capacity in the timbe industy, factos influencing ove-capacity in the timbe industy, the capacity of the foest esouce base to suppot inceased investments in the timbe industy wee assessed and documented Also, policy, legislative and SOCio-political famewoks fo sustaining the esouce base and investment inflows into the timbe industy wee eviewed and documented The late was achieved though output 21, 22, and 23 The constaints of the timbe industy to attact and sustain investments, timbe industy capacity needs and institutional equiements wee identified, analysed and documented Also timbe industy development stategy was eviewed to identify essential elements to conside in the development of stategic business plans duing poject design and identify stategies, which will capitalise on intenal stengths, emove o educe intenal weaknesses to take advantage of extenal oppotunities and minimise extenal theats Contib"tion to the Achievement of thenevelopment Objective L Significant contibution was made towads the achievement of the poject development objective, which was to ensue sustainable timbe industy development in Ghana The conclusions and ecommendations of the poject aise a lot of issues and questions that need to be addessed fo stategic options to be taken to avoid the collapse of the timbe industy and ensue sustainable development of the timbe industy Sit"ation afte poject completion,^ The poject has geneated extensive body of knowledge on investment pomotion and entepise development of the timbe industy in Ghana Five technical epots coveing all aspect of investment pomotion and entepise development in Ghana has been poduced (see annex A fo list of epots) The issues/questions identified ae to be incopoated in the poject design to be analysed in geate detail at the main poject stage 3 TARGETBENElF1CIARIESINVOLVEMENT L The Foesty Commission (FC) was involved in output 12 and 13 The FC povided national foest eseve inventoy data, which was used to assess the capacity of the foest esouce base to suppot inceased investments in the timbe industy They also paticipated in the assessment of the extent of timbe industy paticipation in policy fomulation and decision-making The FC also paticipated in the stakeholde consultative meetings to discuss issues facing the timbe industy and the way fowad These meetings affoded the FC the oppotunity to know the poblems of the timbe industy in attacting and sustaining investments, which will help them to estategies in othe to evamp the industy The meetings also povided a platfom fo the FC to impove on thei collaboation with the timbe industy - The Ghana Timbe Milles Oganisation (CTMO), GhanaTimbe Association (GTA), Funitue and Woodwokes took active pat in output 11 and 23 They also 7

8 paticipated in the monthly and quately meetings held by the poject diectoate to eview pogess made and discuss the way fonvad Membes of these oganizations/ associations have been made awae of the significance of investment analysis, business and action plans Membes of the GTMO and GTA have also been exposed to investment analysis methodologies and possible stategies to deal with industy isks 4 Lessons Leaned I~ I~ L,- L,~ Some lessons wee leant duing pojectimplementation Among the lessons leant ae the following: a Development Lessons Pey'ect Design The poject design was appopiate fo the poject objective The paticipatoy natue of the poject ensued that the views of all the in:^jo stakeholdes in the timbe industy ae bought on desk This contibuted significantly to the success in achieving the poject development objective Coopeation between elevanipqties intoyes!ed In the pey:ec! The poject eceived excellent coopeation fom anthe elevant paties inteested in the poject Howeve, involving all paties in the designing stage of the poject development could have impoved coopeation between all paties Pey:ect82, stomabi/to) tye completion Sustainability of the poject afte completion is high because it falls in line with sectoal policies which ae highlighted in both the 1994 Foest and Wildlife Policy of Ghana and the 1996 Foesty Development Maste Plan, the two mano policy famewoks fothe foesty secto b OpeationalLessons FFqjectoganisoiion andmonogement In tems of oganization the poject had a diectoate, which was headed by the poject leade and a poject implementation team, which was diectly supevised by the poject diectoate The poject diectoate was made up of output leades and poject consultants A poject office handled the day to day unning of the poject This stuctue of oganization ensued fee flow of infomnation fom top to bottom and fom bottom to top, which contibuted significantly to the success of the poject Anothe facto which contibuted to the success of the poject was the fact that honoaium was tied to submission of epot This ensued ealy submission of epots by poject staff 8

9 Pqject documentation At the Gid of the poject, five poject epots in the fom of pinted mateials wee documented and ae lodge with the poject secetaiat Data collected in the field wee electonically saved Pogess epots wee submitted to ITTO evey six months Monitoing andev"i"attoiz The technical committee set up by the poject met annually to assess poject achievements and wok plan fo the cuent yea The poject diectoate also met monthly while the poject implementation team (excluding the local and extenal consultants) met quately to assess poject status, and eview pogess made The secetaies of Ghana Timbe Oganisation (GTMO), Ghana Timbe Association (GTA) and Woodwokes Association of Ghana (FAWAG) wee invited to these meetings At the meetings, poblems encounteed by the poject implementation team duing implementation wee discussed and emedial actions immediately taken 91, alto' ofpqjectplonning The quality of the poject planning was high Each activity begun with identifying aeas whee thee ae gaps in the existing knowledge and hence detemine the type of eseach method to be used The softwae used fo data enty, management, and analysis was detemined befoe data wee collected Data collection was planned fa in advance, which ensued that the appopiate infomation fo the objectives of the study was collected Definition of oles ond e$ponsibility of iisiii"noi involved in the pey:eci implementation The oles and esponsibility of allthe institutions involved in the poject wee clealy defined at beginning of the poject The poject stated with a planning meeting duing which all poject patnes discussed oles, esponsibilities and schedule of activities Foesty Reseach Institute of Ghana (FORIG) housed the poject and wasesponsible fo activities 11 I, 122, 123, 13 I, 132, 21 I and 223 Foesty Commission, Institute of Renewable Natual Resouces (IRNR), Ghana Timbe Milles Oganisation (GTMO), and Ghana Timbe Association (GTA) wee the collaboating institutions Foesty Commission was esponsible fo activity 12 I GTMO and GTA weejointly esponsible fo activities 113 and 232 Actions to be token to avoidvoiations betweenplonnedondoci"ajimplementoiion (Schedule, costs, etc^i Pe-financing of activities befoe fisttanche of funds is eleased could have avoided delay in poject implementation Howeve, a question can be aised on the availability offunds to pe-finance the activities 9

10 I_ Extenal/actos thatii!111, enced the pqjeciimplementoiion and hoi COM1d have been foeseen The fist tanche of funds was delayed fo fou months esulting in a delay in the execution of the poject activities Howeve, the implementation team woked aound the clock to complete the poject on schedule Exienal/actos hoiii!/i"enced ihe pqjeciimp!emenioiion gid ho! COM1d no hove been/byeseen The mano stakeholdes (GTMO, GTA and policy makes) had tight schedule This delayed activity 113, which was to hold consultative wokshop to discuss issues facing the timbe industy Howeve, though discussions with the pesidents of GTMO and GTA the pojected used consultative meetings instead of a wokshop, which ensued that the activity was completed on time 20 Recommendations To impove the effectiveness and efficiency of futue pojects the poject staff ecommendsthe following: Planning wokshop/meeting to discuss poject concept, wokplan, oles, esponsibilities and schedule of wok should pecede actual implementation to ensue a smooth implementation Honoaium should be tied to submission of epot to ensue ealy completion of wok Executing institution should mobilize funds to pefinance activities to foestall slow down of poject activities due to unavailability offunds InO should expedite elease of funds to foestall delay in execution of poject activities 10

11 PART 11:11^IAINTEXT 10 PROJECTREStILTS Pe-ploy'ectsii"oion L L Inadequate entepise development, lack of industy stategic business plans, poo investment flow, lack of pope utilisation of investments and the lack of infomation on the ovecapacity poblem in the timbe industy wee the pe-poject situation Massive investment in the pimay secto at the expense of the seconday and tetiay sectos of the timbe industy led to hoizontal gowth athe than vetical gowth Detailed investment analysis and entepise development studies wee not done pio to the massive injection of capital into the timbe industy Also no detailed feasibility studies and long tem stategic analysis at entepise level have been undetaken to captue emeging oppotunities and theats, which will ensue sustainable development of the timbe industy Situation existing qfiepqj'ect completion Post poject situation is a significant impovement of the pe-poject situation Diagnosis of timbe industy ove-capacity was done though industy ound inteviews and a desk study Thity managing diectos and foest manages of selected timbe mills wee consulted to know thei views on the easons fo the ove capacity in the timbe industy In addition esults of pevious studies addessing simila issues wee eviewed The timbe industy was found to favou the stoi"s quo that allows it to substitute logs fo capital as a means of impoving etun on capital This has esulted in "excess pofits" Unde picing of timbe esouces and institutional weakness in contolling the egulated havest level wee found to be majo contibutos to industy's ove-havesting The efom agenda fomiulated to dealsimultaneously with the demand and supply sides of the equation include on the demand side, alignment of a foest fiscal egime to the competitive bidding system in esouce allocation and a possible managed elaxation of the expot ban On the supply side, Foesty Commission's seach fo "new appoaches"is likely to esult in its shaing offoest management esponsibilities with stakeholdes (TUC holdes and communities), while focusing on egulating the foest havest and devolving the Commission of commecial egulatoy oles in the timbe tade It is expected that the intoduction of competitive bidding as a mechanism fo allocating timbe ights will contibute to eshaping the stuctue of incentives away fom inducing shot-tem pofits and ent-seeking to focusing on foest management and economies of scale in pocessing an/o high labou poductivity as a long-tem goal The study found that the elevance of the competitive bidding mechanism is yet to be tested, as the State has since 2001 issued by administative means Timbe Utilization pemits to industy applicants and moe Salvage pemits to about halfthe numbe of the wood industy The Foest Sevice Division (the supply-side egulatoy body) and the Timbe Industy Development Division (the demand side egulatoy and inspectoate body) wee found notto be able to establish a contol pocedue fo monitoing havest and elating it to the industy's wood flow 11

12 L ~ I_ L_ Using the 1996 National OFR inventoy, the OFR aea have been found to be capable of poviding about 504,086 in' of timbe a yea This quantity o quota is expected to be in continuous supply fo 55 yeas until plantation stock takes ove A Gategoisation of timbe esouces into the vaious sta classes shows that the bulk of the esouces ae distibuted between the Red (422%) and Pink Sta (449%) categoies Ally shifts in the above quotawill ceate gaps, leading to a eduction in the numbe of sustainable supply yeas' In 2003, a povisional quota of I million in' was allocated to the OFR aea, to salvage tees fo plantations to stat This quota is twice the AAC of aea and ifallowed to continue the numbe of emaining yeas would be halved The standing tee volume of the timbe poduction aeas within the pemanent foest estates of the Ghana high foest zone is estimated as 116,792,741 in' The static volume (in') o stem numbes of economic species that could be extacted pe yea have been estimated as 584,686 in' o 53,153 tees Unde stict compliance, this volume of wood would be supplied in pepetuity The bulk of the esouces ae howeve found in the pink sta categoy (837%) while the scalet and ed sta categoies ae 91% and 7% espectively Effots ae equied to pomote the use of the pink stas, since a continuous ove eliance on the scalet and ed stas would lead to thei depletion and eventual extinction By adopting the elations detennined and used by Nketiah (1992) the study geneated data on esidue geneation using data obtained fom Timbe Industy Development Division ecods on extacted bole o logs volume An analysis of the data indicated that logging esidue geneation aveages 50% of the whole tee volume This comes in the fom of cown end off-cuts, butt Gid off-cuts, banches and stumps In 2002, 1,112,046 in of logging esidue wee geneated, while between Januay and June 2003, about 495,179 in of logging esidue was geneated Logging esidue usage was found not to have gained the pominence that it equies even though it has seveal potential uses such as fo, funitue, culs, paquet flooing, caving and sculptue, chips fo pulp and paticleboad and chacoal Potential aeas in the timbe industy investos can invest based on the availability of esouces wee identified though eview of pevious studies and a desk study Specific aeas identified fo investments ae; finge jointing, moulding, paquet flooing, sawdust biquetting, ply milling, caving and chacoal poduction, The 1994 Foest and Wildlife Policy, 1996 Foesty Development Maste Plan, Foesty Commission (FC) epots, Ministy of Land and Foesty (MLF) epots and othe elevant documents wee eviewed The extent to which the int\jo stakeholdes paticipated in policy fomulation and decision making was assessed though consultation and inteviews with the matjo stakeholdes It was found that policy fonnulation is lagely undetaken in consultation with the agencies that egulate the industy and little with the Industy The Industy has complained about policy makes coming to it with ajiz!^^' This happens when govenment pesents policy measues fo industy's eaction Policy ationales and stategies ae seldom discussed at industy levels In the last thee yeas, some attempts have been made subjecting policy efom initiatives to consultation with industy though staged-wokshops whee industy concens have been noted ' The Ghana Wood Industy and log Expot Ban Study adopted this consultstive pocess 12 I'

13 ~ I' L,- L_ L I~ In addition to inside infonnation managing diectos of five lage-scale mills and ten small-scale mills wee consulted fothei inputs on issues that need to be addessed to efom the timbe industy and make it moe investo fiendly Some of the issues identified as having elevance fo policy efoms and the investment climate ae; industy accustomed to too much wood, absence of popety ights, and ovepotection of the timbe industy Seveal constaints have been identified fom inteviews with some industy paticipants Th$3 key constaints include: unstable macoeconomic envionment, uncetainties ove aw mateial supply, weak institutional suppot, inadequate well defined popety ights ove aw mateial bases o concessions, dependence on the exploitation and maketing of few pime timbe tees, ove-egulated industy, activities of envionmentalists in the consuming counties/makets against the use of topical had wood timbe because of unsustainable foesty management constaints that could theaten the sustainable development of the industy Besides industy constaints, thee ae othe investment constaints that hinde the pomotion of actual investments in the industy and these include: high cost of cedit, difficulty in accessing loan finance o equity, less maket-oiented entepise management, inappopiate and obsolete machiney and equipment, weak infomation technology platfoms Industy and investment constaints wee found to have negative impact on the gowth of the industy esulting in the cuent industy chaacteistics of weak liquidity, high geaing and low pofitability Key factos influencing investment appaisal decisions wee identified and discussed though inteview with some industy paticipants It was found out that most investment appaisal decisions wee taken without ecouse to tied and tested methodologies of discounted cash flow analysis A stategic analysis of the timbe industy pefomance evealed that industy simply esponds to policy signals The policies pusued in the past have pimaily caused industy to ove-concentate its stategies on availability of wood fibe Some key playes howeve, have a long-tem inteest in keeping the esouce by sensing a disappointing absence of popety ights Pesently, howeve, Industy's peception is that the esouce is unning out and this explains why thee is shap downtun in investment Timbe entepises wee found not to have esponded appopiateiy to signals fom thei intenal envionment This advesely affects efficiency of fims The mano weaknesses in capacity aticulated by the study ae the following: limited skills, geneal lack of pofessional contol in supevision of shop-floo poduction, little challenge in industy fom pocess contol equiements, lack of maketing skills, weak technical skills fo managing millinfastuctue, limited intenal financial data geneation and management The foest management and tade egulatoy institutions wee found to be weak in many espects The shot-tem annual quota administeed by the FC is unenfoceable, its staff having little commitment to do so The egulatoy instument of Annual Allowable Cut (AAC) also beas no elationship with makets fo timbe and wood 13

14 poducts The annual havest quota system and monitoing lagely emain unmanaged, while the issue of salvage and othe pemits makes monitoing an ovenvhelming task These conditions have povided ecipes fo inceased havesting ~ I~ L L Among the institutional needs identified ae; maket oiented foest egulation, shaed esponsibility in the installation and management of an FC-poposed log tacking system, and the need to steamline timbe inspection A consultative wokshop involving paticipants fom the timbe industy and othe stakeholdes with keen inteest in the industy was held to discussthe way fowad fo the timbe industy The wokshop wasjointly oganised by InO pe-pojects, PPD 63/02 Rev 100 and PPD 53/02 Rev 100 Development of Enegy Altenatives fothe Efficient Utilization of Wood Pocessing Residue: Co-Geneation and Biquette Poduction (Ghana) The idea fo the joint wokshop was to enable membes of the diffeent Tio Foest Industy pe-pojects being implemented by the Foesty Reseach Institute of Ghana (FORIG) to fomulate and submit to the ITTO a single poject poposal addessing most of the concens of the timbe industy in Ghana The wokshop epot has since been submitted to the Tio by the team leade ofppd 53/02 Rev I (1) Development of Enegy Altenatives fo the Efficient Utilization of Wood Pocessing Residue: Co-Geneation and Biquette Poduction (Ghana) Exte"t to whichpc!iects;pec!/ic o^iective w"s "chieved The specific objectives wee achieved as poposed in the poject documents The esults poduced by the poject have povided the famewok upon which to develop the main poject es"its The poject had significant impact on sectoal pogammes, physical and social envionments and taget beneficiaies Impocion secto@ipogommes I~ The poject had significant impact on sectoal pogammes which aims at enhancing sustainable utilisation of timbe esouces and the sustained development of the wood industy These objectives ae highlighted in both the 1994 Foest and Wildlife Policy of Ghana and the 1996 Foesty Development Maste Plan (FDMP), the two int\jo policy famewoks fothe foesty secto Impac!on physicalenvionmeni A numbe of ideas/questions have been geneated which when incopoated into the main poject would impact positively on the physical envionment Impact on social envionment The geneal awaeness among the majo stakeholdes in the timbe industy on the status of the timbe industy, the investment climate in timbe industy, sustainable 14

15 ~ industy development pactices has been impoved This would impact positively on the social envionment Impact on togeibe"<1iciaiy The poject impacted positively on the timbe industy, funitue poduces and policy makes The poject has made it possible to build consensus among membes of the Ghana Timbe Association (GTA), the Ghana Timbe Milles Oganisation (GTMO), and the Foesty Commission on the way fowad I_ Pqjects"st"incbilidy, 41tepqject coinpletio" The poject staff would fomulate and submit a follow up poject out of the issues/questions aised by this poject 20 SYNTHESISOFTHEANALYSIS Item a Specific Objective(s) Achievement b Outputs c Schedule d Actual Expenditues e Potential fo Replication f Potential fo Scaling-up Anal sis Realised Realised Realised Realised Significant potential Significant potential,- 15

16 PARTlll:CONCLUSIONSANDRECOMMENDATIONS 10 Conclusions The poject was implemented as scheduled in the poject document A numbe of issues/questions wee aised by the poject, which can be incopoated into the poject design at the main poject stage The poject made significant contibution to scientific knowledgejudging fom the numbe of technical epots emanating fom the poject a) Developme"tLesso"s The poject design was appopiate fothe poject objectives The paticipatoy natue of the poject ensued that the poject enjoyed excellent coopeation among allthe elevant paties by Ope"ito""Ilesso"s The poject was well oganised and managed It had a diectoate and a poject implementation team, which was answeable to the poject diectoate Annual technical committee meetings held to eview poject achievements also helped to claify knotty issues, both administative and technical Quately and monthly meetings of the poject staff to discuss the status of the poject evealed all shotcomings and helped solve cuent and unfoeseeable poblems Results of the poject wee well documented The oles and esponsibility of allinteested paties wee clealy defined at the beginning of the poject All these led to smooth implementation 12 Recommendations fo futue Pojects * Poblem identification should be caefully done and well defined * Poject design should be appopiate fothe poject objectives * Honoaium should be tied to submission of epot to ensue ealy completion of wok * Pojectimplementation should begin with a planning meeting/wokshop I_ * Poject activities should be pefinanced by the executing agency to foestall delays in the execution of some of poject activities due to unavailability of funds 16

17 I_ Responsible fo the Repot Name: D Victo K Agyeman Postiibn Held: Poject Coodinato Signal"e: "I FORESTRY RESEARCH INSTITUT^ OF GHANA Unv P, 0, Box 63 KuanASl, GUA"A 17

18 PROJECTSTAFlR Name D VictoKwameAgyeman D Boateng Kyeeh M Koio Agyapong Afifah M MichaelEkowAmoah M YawBediako M Gene Binkoang M ACquah Moses M John Dako M Jonathan Davies Position Institution FORIG Poject co-odinato Asst Poject co-odinato IRNR Wood Scientist IRNR Resouce Economist FORIG Investment Analyst FC EntepiseDevelopmentSpecialist Consultant Executive Secetay GTMO Executive Secetay GTA Resouce Economist FC EXECUTINGINSTITl ITION Foesty Reseach Institute of Ghana Univesity Box 63, Kumasi, Ghana TEL: / FAX: diecto@foig og COLLABORATiNc mstiti ITioNs Foesty Commission (FC) Institute of Renewable Natual esouces(irnr) GhanaTimbe Milles Oganisation (GTMO) GhanaTimbeAssociation (GTA) Funitue and Woodwokes Association of Ghana (FAWAG) 18