Project Initiation Document

DPRK - Nematodes

Project Executive: Loke Wai Hong Senior Users: Loke Wai Hong, Janny Vos

Senior Suppliers: Ulli Kuhlmann, Qiaoqiao Zhang Project Manager: Ulli Kuklmann

Date: 06/04/2010PID Version: October 2009

Sustainable reduction of crop yield losses through on-farm availability of biological plant protection agents against soil-borne insect pests for strengthened food security in DPRK

Part A – Background (1)Executive Summary & Objectives

Project ObjectivesProduction of cereal crops, in particular, maize is sustainably increased in the pilot province(s) in DPRK, through the development of a nematode production system and subsequent application of increased nematode numbers to fields.

Executive SummaryFood crops in DRPK are under increasing threat from soil-borne insect pests that can cause yield losses of 25-30% depending on the crop. The problem is exacerbated by the limited options for pest control available to DPRK farmers. The project will develop and field test new production methods for nematodes to use as a biological control agent for the soil-borne insect pests. Capacity building and training of scientists and farmers will be undertaken and the increase in knowledge and skills should result in stable yields, increased economic stability and improved food security.

Part A – Background (2)Key Stakeholders and Beneficiaries

● Stakeholders and Beneficiaries:-● Donor(s): European Commission, EuropeAid● End-user(s): Farmers in cooperative farms,

researchers at agricultural universities and colleges, county plant protection stations

● Partner(s): Academy of Agricultural Sciences (Plant Protection Institute); Ministry of Agriculture (Central Plant Protection Station); Andermatt Biocontrol GmbH (Associate), Guangzhou Lu-Ben-Yuan Biotech Ltd. Co (Associate)

● CABI Centres/Departments: CABI PRC

Part B – Implementation (1)Proposed Organisation Structure

● Corporate Management: PMG● Project Board:-

● Project Executive: Loke Wai Hong ● Senior Users: Loke Wai Hong, Janny Vos● Senior Suppliers: Ulli Kuhlmann, Qiaoqiao Zhang ● Project Assurance: Dannie Romney● CABI Budget-holder: Ulli Kuhlmann

Note that, if not the Project Executive, the CABI Budget-holder must have written confirmation from the Project Executive, and the Project Manager if required by Project Executive, prior to authorising payment.

● Project Manager: Ulli Kuhlmann

● Team Managers: Manfred Grossrieder, Stefan Toepfer

Part B – Implementation (2)StagesStagesWork Packages / Deliverables in Stage, unless indicated in Stage Name

Stage

Completion Date

ER 1. Detailed work plans are finalised. Available information, both national and international, on nematodes compiled.

Month 3

ER 2. Prerequisites for production and application of plant protection agent for soil-borne insects prepared. Capacity building carried out at appropriate scientific institutions.

Month 24

ER 3. 3 low technology methods for mass production and application of nematodes analysed and adapted

Month 24

ER 4. 3 County Competence Centres established to support on-farm nematode production. 3 pilot cooperative farm production units established.

Month 36

ER5. Quality control system developed and implemented for nematode production and application.

Month 48

Part B – Implementation (3)StagesStagesWork Packages / Deliverables in Stage, unless indicated in Stage Name

Stage

Completion Date

ER 6. Participatory knowledge transfer strategy developed for County Competence Centres, on-farm production staff, extension workers and farmers.

Month 30

ER 7. Production specialists trained in nematode production. Extension personnel and farmers trained in applications methods.

Month 42

ER 8. 3 additional cooperative farm nematode production units established in each of three model counties.

Month 36

ER9. Foundations laid for nationwide dissemination of production and application methods. 3 provincial production units established

Month 36

ER 10. Internal monitoring and evaluation conducted. Reports compiled.

Month 48

Part B – Implementation (4)CABI Resource RequirementsStaff(and/or role on project)

Time Required on Project(Indicate whether time is in Days or Months)

Ulli Kuhlmann – project manager 75 days

Other E-CH staff (Stefan Toepfer, Manfred Grossrieder, Keith Holmes, etc)

330 days

China staff (Hongmei Li; Feng Zhang) 240 days

Dannie Romney, project assurance 18 days

Loke Wai Hong, project executive 18 days

Project support, E-CH 73 days

Part B – Implementation (5)Customer Acceptance Criteria

Acceptance Criteria Target Measures

Low and high tech nematode production techniques developed

3 adapted techniques developed

3 techniques tested at PPI

Low tech nematode production facilities operational at county and co-farm level.

12 co-farm production facilities operational

Production facilities producing nematodes for on-farm applications

Dissemination strategy promotes achievements through EU funding

Project achievements known in DPRK

Visibility event held and products generated

Part B – Implementation (6) Customer Acceptance Criteria

EuropeAid criteria:● Proposal must aim to contribute to overcoming

persistent technical and organisational deficites which cause unstable availability, distribution and use of food.

● For community based projects it is expected that projects contribute to stabilize food production and availability and to improve access to food and nutrition.

● Topics such as gender equality, access to food and distribution, educational activities, income generation and nutrition must be streamlined

● Agreement with KECCA and signed partnership statements from partners available

● Proposal submitted according to call guidelines

Part B – Implementation (6)Project Exclusions & Interfaces

Exclusions● Will focus on cereal crops, primarily maize – no other food crops included● ● ●

Interfaces● Trichogramma Maize IPM project funded by EuropeAid (until May 2011)● Partnership project funded by EuropeAid (start potentially 1 July 2010 for 30

months)● SDC funded ICM project (until Dec 2011)● ●

Part B – Implementation (7)Key Constraints & Assumptions

Constraints● Political situation in DPR Korea could create difficulties for travel and

reaching the most appropriate people to participate in the project● Need appropriately skilled people to run production facilities ● Required to operate through Korean-European Co-operation Coordination

Agency (KECCA)

Assumptions● Essential travel and visa availability is possible through good relationship

with KECCA, EuropeAid Pyongyang and other DPRK officials such as in the Department for International Organisations (M0FA)

● DPRK governmental officials support entire implementation● Cooperative farms prepared for international collaboration● Production facilities for nematodes reliably run

Part C – Reasons for CABI (1)Key Business Benefits - Strategic

● DPRK new member country. ● Continuation of presence in DRPK for another 4 years acting as preferred

partners in the field of IPM for Ministry of Agriculture. Academy of Agricultural Sciences is long term partner in DPRK.

● Raising CABI’s profile in providing solutions to agricultural problems to improve food security in a member country.

● Provides further support to maintain a CABI Project Office in Pyongyang’s diplomatic district, which is an essential operational base with international communication options for CABI consultants

● Improving CABI’s track record with EuropeAid to increase chances of success in future, including larger amounts of funding.

Part C – Reasons for CABI (2)Key Business Benefits – Financial(Externally funded Projects only)

Full Project Budget – Planned Comments

Donor Currency: Euro

Exchange Rate to £: 0.83

Overall Contract Value in £ (if known): 867,745

Costs Billed to Project Donor (£)

Gross Revenue (Total Project Revenue): 867,745

Payments to External Collaborators: 416,821

Net Income: 450,924

CABI Implementation Costs (£)

CABI Staff Costs: 172,216

Direct Costs:(other direct costs, for example travel, etc)

194,816

Net Profit/Loss (Project Contribution): 83,892

Net Project Contribution (%): 18.6

Note that the financials should match the information in the Project Financial Analysis (PFA) form.

Part D – Risks (1)Key Risks(for Collaborator, Security, Technical Risks, see next slides)

Risk Owner Likelihood

(L)

(1=Low;

3=High)

Impact

(I)

(1=Low;

3=High)

Total

(L x I)

(1=Low; 9=High)

Management Strategy

(Choose from Prevention, Reduction, Contingency, Transference, Acceptance, and give brief description of how applied)

Lack of cooperation from project partners

PM 1 3 3 Acceptance –have worked with all project partners for many years making lack of cooperation unlikely

Electricity problems PM 3 3 9 Prevention – ensure production methods are designed to cope with limited availability of electricity

Political unrest & access restrictions

PM 2 2 4 Acceptance – MoFA will be informed of each mission well in advance, and get approval . Permission to access cooperative farms obtained

Part D – Risks (2)Collaborator Risks

Collaborator Name

(to be paid by CABI)

Has CABI worked with them before? (Yes / No)

Assessment of Collaborator Risk

Include, for example:• Their reputation;• Past experience of working with them (if appropriate).

How much (£) in total is the Collaborator to be paid?

Andermatt Biocontrol GmbH in Switzerland (SME)

Yes High reputation as reliable company to produce commercially biological control agents

Based on Associate status (travel & subsistence)

Guangzhou Lu-Ben-Yuan Biotech Ltd. Co in China (SME)

No Regional reputation as reliable company to produce commercially biological control agents

Based on Associate status (travel & subsistence)

Part D – Risks (3)Security Risks

Location of Work Has CABI worked there before?

(Yes / No)

Is there a current, or likely, security risk in that location?

(Yes / No)

Is an alternative secure location eligible for project?

(Yes / No)

DPR Korea Yes No No

Part D – Risks (4)Technical Risks

Technical Work Has the Lead Centre previously undertaken this Technical work?

(Yes / No)

Has another area of CABI previously undertaken this Technical work?

(Yes / No)

No effective native biological control agents found

Yes Yes

Production design not feasible for DPRK

Yes No

Required materials not available for construction and equipping production facilities

Yes No

Nematode applications not achieving desired impact

Yes No

Part E – Dissemination & Impact (1)Dissemination of Results

Dissemination Method(what, how, etc)

Target Results Measures

Facilitating planning workshop All parties to the project fully informed and committed to the project (particular ICM-TAG)

Planning workshop conducted, planning documents available and project is able to move smoothly

Providing knowhow and technical expertise to mass produce nematodes commercially

Three low-technology methods for the mass production of nematodes analysed and an adapted production system for DPRK developed

Low production technology for cooperative farms available

Advanced production technology available

Technical backstopping for production unit establishment

12 units on cooperative farms

6 units at county and 3 units at provincial level

Nematode based biological control product available to farmers

Conducting training of trainers – production of nematodes

8 scientists from PPI

18 technical officers from MoA

18 technical officers (province/county level) who will train 12 production teams consisting of 5 staff

Skilled staff available in production units and able to produce and deliver biocontrol product to farmers

Part E – Dissemination & Impact (2)Dissemination of Results

Dissemination Method(what, how, etc)

Target Results Measures

Facilitating training of farmers (application techniques)

20 extension specialists trained in ToT

On-farm training of 100 to 120 work team leads at 12 farms

Farmers trained and skilled to apply nematode based biological control product

Conducting visibility event Visibility event in People‘s Culture Palace in Pyongyang conducted

DPRK governmental officials informed about project outcome

High quality mission project reports, annual reports (written and financial) are provided to EuropeAid

Donors satisfied with reporting and spending

Reports favorably accepted and spending approved

Part E - Dissemination & Impact (2)Impact of Project(Scientific, Technical, Commercial, Social, Environmental)

Impact Target Measures

Maize yield increased through nematode application

Maize yield increased by 10%

3 production technologies available for research at plant protection institute

Adapted technology developed to produce nematodes in DPRK conditions

12 co-farm nematode production facilities operational

Co-farm facilities producing nematodes for field application

3 county low tech and 3 county advanced tech adapted production facilities in place at county competence centres

Facilities operational

100 to 120 work team leaders, 8 scientists & 18 technical officers, 20 extension specialists trained, 600 farmers on 12 farms are skilled to apply nematodes

Training conducted and new methods implemented

Part F – Reporting and Sign-off (1)Reporting

Information Provider

Information Required Interested Parties Frequency

a) Project Executive

a) Updates on progress Corporate Management (CABI)

a) Annual

a) Project Manager

a) Progress of activities

b) Successes and problems

Project Board (CABI)

a) As required through short mission statements and interim report (=annual report)

a) Team Manager

a) Progress of activities

b) Successes and problems

Project Manager a) As required through mission reports, regular oral updating, interim report

a) Project Manager

b) Accountant

a) Input to technical reports to donor

b) Input for financial reports to donor

EuropeAid Brussels and Pyongyang

a), b) Narrative Reports to be submitted yearly (Technical and Financial)

Part F – Reporting & Sign-off (2)Supporting Documentation

As a minimum to accompany the completed PID:● Project Financial Analysis

Extra supporting documentation may be provided:● Log Frame● Concept Note submitted to EuropeAid which led to

invitation to write full project proposal

Please note that projects with an Intellectual Property Right (IPR) component require the contract to be submitted to PMG prior to signature.

Part F – Reporting & Sign-off (3)Authorisation

Project Executive / EMT: ……………………………………………

Date: …………………………………………………………..

PMG Sign-off (Level 1 Projects) …………………………………………..

Date: ………………………………………………………………………….

Approval of: PID Development of Business Plan

PMG Comments and/or Follow-on Actions:

Appendix A – New Product / Initiative (1)

Customer Needs & Trends

What Problem Are We Trying to Solve?

<Evidence from market research, in-market interviews>

Purchasing Criteria

<evidence>

Purchasing Process

<evidence>

Preferred Pricing Models

<evidence>

Strategic Fit

Market Attractiveness

<£ per annum, size, strategic importance>

Market Growth & Trends

<% CAGR, evidence>

Profitability <High/Medium/Low, evidence>

Competition <Significant existing players, partner opportunities, quantified scale of competition>

Appendix A – New Product / Initiative (2)

Financial Impact

Revenue Opportunity <£ p.a. after 3 years, Gross/net revenue, Evidence, eg. no. of subscriptions @ £x, Annual growth rates, Total project revenue/contract value, etc>

Total Investment Required

<quantify, breakdown of expenditure (staff costs vs. direct costs), capex vs. P&L expenditure, payments to collaborators, etc>

Return on Investment <profitability target, return on capital employed, pay-back period/break-even, net project contribution, etc>

Proposed Product / Initiative Specifications

Product / Initiative Scope <Summary definition of product scope and objectives, Key selling points – how is this product better than the competition?>

Workflow Integration <Explain how product fits into user’s workflow>

Revenue Model <Subscription, purchased, sponsored>

Sales & Marketing Strategy

<Online marketing/conference attendance/direct mail/telesales, etc>

Technology Strategy <In-house development or third party solution?>