This PPD approach involves the allocation of degraded forest reserve lands by the Forestry Commission to private entities after their reforestation plans have been vetted and approved by the Forestry Commission and their Land Lease and Benefit Sharing Agreements subsequently signed by the major stakeholders. The Forestry Commission undertakes monitoring of the operations of the private entities to ensure compliance with the terms and conditions of the Agreements and the approved Reforestation Plans. Under this arrangement, the private investor earns 90% of the Standing Tree Value (STV) of the plantation whereas the remaining 10% is shared as follows - FC (2%), Landowner (6%) and Local Community (2%). In addition, the investor pays an annual ground rent of the Ghana Cedi equivalent of $2 per hectare for the total allocated area over the lease period.
An area of 1,264.5 ha was reported established in 2021 under this sub-component.