Tree Stumps Now Useful
An initial three-year study of standing trees in the Volta River has revealed that Ghana could become the largest underwater logging destination in the world.
Samples of trees cut from the river indicated the availability of high quality species in commercial quantities, including those considered extinct from the forest, estimated to generate US$2.8 billion direct revenue over the project life-cycle. It will constitute about 40 per cent of the country's current timber exports.
As a result, the company which conducted the feasibility, Clark Sustainable Resource Development (CSRD) and an underwater logging machines manufacturer, Triton Logging, joined forces in a merger on September 24, to exploit the resource from the Volta Lake.
The signing of a commitment letter to deliver Triton's world-leading underwater logging technology to the project would enable commercial harvesting, processing and marketing of logs from the Volta Lake to begin in the third quarter 2010. The signing also marks the most recent step in the amalgamation process of the two companies to pursue implementation of the project.
Apart from removing the tree stumps, which are life-claiming hazards on the Volta Lake, the operations of the company would inject about US$100 million foreign direct investment in addition to corporate taxes and royalties to the government and people of Ghana.
Founder and President of CSR Ghana, Mr Wayne Dunn, said the project was commercially viable and would not only improve the timber industry in Ghana but also position the country as a leading exporter of underwater logs.
He said the first phase, which involved the injection of US$20 million in visibility, involved a lot of risk and uncertainty and that their success had been due to their commitment to the project. The second phase would see the injection of an additional US$50 million before the project starts.
CSR Development will site a wood milling and processing factory in one of the villages along the Volta Lake and that would serve as a direct source of employment for the people in the locality.
The project would generate about 1000 jobs new, which according to the Founder and President of Triton, Mr Chris Godsall, about 95 per cent of the workforce would be drawn from the locality as the people would be trained and equipped with employable skills.
He said manufacturing of the equipment – the SHARC, designed for shallower areas of the lake, and the Sawfish, which works generally in deeper underwater forests – would begin in earnest to be delivered in 12 months.
Ghana's Volta Lake was created during the construction of the Akosombo Dam in 1964, which resulted in tracts of forest being submerged, forcing the relocation of some 80,000 people to 52 newly created townships on the Lake's higher banks.
Now a transportation corridor for residents of the various lake side communities, as well as a source of fish and water related wildlife, the river's tree stumps have for years caused boat accidents that have claimed many lives.
The Government and the Volta River Authority (VRA) have, therefore, been seeking solutions to remove standing trees in the Lake and at the same time implement projects that can enhance the socio-economic development of the area.
In February 2006, the Volta River Authority (VRA) and Government of Ghana (represented by the Ministry of Energy and the then Ministry of Harbours & Railways) signed an agreement for phase one of the project with CSR Developments. The agreement granted a concession to CSR Developments to harvest trees from the submerged forests. The agreement was ratified by Parliament on July 28, 2006.
The Agreement, which comprised a Preparatory Phase (Phase I) and a Commercial Phase (Phase II) allowed CSR Developments to develop and launch privately financed timber salvage and processing operation on the Volta Lake.
The project is also expected to bring environmentally certified timber products from Ghana to the global market, and also establish Ghana as a world leader in underwater timber harvesting.
In addition, it will develop technologically advanced processing and other value-added capabilities in Ghana, presenting an opportunity to extend industry into areas of the country where such industrial activity did not previously exist. The Project will also create employment, training, and business opportunities for hundreds of Ghanaians.
Directors of the merged company said they would work closely with the government and other stakeholders to develop a comprehensive strategy to address lake transportation safety issues.
Story : Samuel Doe Ablordeppey