Mainstreaming legality requirements for timber and timber products in public procurement contracts

Worldwide, public procurement policies have been noted as an effective tool in sanitizing markets. In Ghana, the Ministry of Lands and Natural Resources (MLNR) and the Timber Industry Development Division (TIDD) of the Forestry Commission (FC) have drafted a public procurement policy on timber and timber products. The aim of the policy is to use the purchasing power of government procurement to signal the domestic timber market in favor of legally and sustainably sourced timber and timber products.  This policy is viewed by many as crucial for curbing illegal logging and associated trade in the country. However, the need for Cabinet’s approval has stalled progress towards the ratification and implementation of the policy.

Yet, certain key stakeholders of the policy are not relenting on their efforts as they believe, by using government’s purchasing power through the introduction of requirements for legally sourced timber in public tenders, the Government of Ghana would be taking the lead in responsible consumption of timber products in Ghana, ensuring compliance with national laws, promoting responsible forest management practices and using the goodwill of the VPA process to sanitize the domestic timber market. Furthermore, the stakeholders are of the opinion that, mandatory use of legal timber for public works has the advantageous implication of increasing the revenue stream from the forest sector, as illegal loggers and dealers do not pay taxes on the products, they deal in.

Encouraged by the willingness of the Ministry of Land and Natural Resources (MLNR) to engage stakeholders on this issue, NDF initiated a series of technical working sessions with the Public Procurement Authority (PPA) of Ghana to advance on the subject. The work eventually led to the identification of several sections of the PPA Act 663 (as amended) that could support the introduction of a mandatory requirement for legal timber in public procurement processes. The process calls for submission of evidence of both intentions to use legal timber at the bidding stage, as well as proof of use of legal timber for the execution of works at the payment stage.

Additionally, the work by NDF led these key stakeholders to develop documental proofs of legality of timber sourced for and used in public works. However, to ensure adequate buy-ins towards the implementation of these new provisions and to seek validation on the proposed documents developed, there is the need for wider consultation consultations at the regional level with government contractors, timber companies, timber retailers and procurement entities.

With funding from the Food and Agriculture Organization (FAO) under the FAO EU FLEGT PROGRAMME, NDF is implementing the project; “Mainstreaming Legality Requirements for Timber and Timber Products in Public Procurement Contracts”.