for official use only report no: pad2566 international … · 2019. 5. 21. · for official use...

FOR OFFICIAL USE ONLY Report No: PAD2566

INTERNATIONAL DEVELOPMENT ASSOCIATION

PROJECT APPRAISAL DOCUMENT

ON A

PROPOSED GRANT

IN THE AMOUNT OF SDR 17.9 MILLION

(US$25 MILLION EQUIVALENT)

TO THE

CENTRAL AFRICAN REPUBLIC

FOR THE

AGRICULTURE RECOVERY AND AGRIBUSINESS DEVELOPMENT SUPPORT PROJECT

April 25, 2019

Agriculture Global Practice

Africa Region

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CURRENCY EQUIVALENTS

(Exchange Rate Effective February 28, 2019)

Currency Unit = Franc CFA (XAF)

580 XAF = US$1

0.7153 SDR = US$1

FISCAL YEAR

January 1 - December 31

Regional Vice President: Hafez M.H. Ghanem

Country Director: Jean-Christophe Carret

Senior Global Practice Director: Juergen Voegele

Practice Manager: Dina Umali-Deininger

Task Team Leaders: Omar Lyasse, Amadou Oumar Ba

ABBREVIATIONS AND ACRONYMS ACDA Agence Centrafricaine de Développement Agricole (Central African Agriculture Development

Agency) ACFPE Agence Centrafricaine pour la Formation Professionnelle et l’Emploi (Central African Agency

for Professional training and Employment ) AFD Agence Française de Développement (French Development Agency) AfDB African Development Bank AGETIP-CAF Agence d’Exécution des Travaux d’Intérêts Publics en Centrafrique (Implementing Agency for

Public Works in Central Africa) Agri-MSMEs Agribusiness Micro, Small and Medium Enterprises Agri-SMEs Agribusiness Small and Medium Enterprises ANDE Agence Nationale de Développement de l’Elevage (National Agency for Livestock

Development) ARADSP Agriculture Recovery and Agribusiness Development Support Project AWPB Annual Work Plans and Budgets BC-ratio Benefit-Cost Ratio CAADP Comprehensive Africa Agriculture Development Program CAE Child Abuse/Exploitation CAR Central African Republic CDD Community Driven Development CE Citizen Engagement CEMAC Communauté Économique et Monétaire de l'Afrique Centrale (Central African Economic and

Monetary Community) CEN Country Engagement Note CERC Contingency Emergency Response Component CIGs Common Interest Groups CLER Comité Local d’Entretien Routier (Local Road Maintenance Committees) CMOD Chef de Maitrise d’Ouvrage (Delegated Management Responsibility) CNOP Concertation Nationale des Organisations Paysannes de la Centrafrique (National

Concertation of Peasant Organizations in the Central African Republic ) CNSA Climate and Nutrition Smart Agriculture CPF Country Partnership Framework CSA Climate Smart Agriculture DA Designated Account DAF Direction Administrative et Financière (Administrative and Financial Department) EFA Economic and Financial Analysis EROM Emergency Response Operational Manual ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework EU European Union EX-ACT Ex-Ante Carbon Balance Tool FA Fiduciary Agent FAO Food Agriculture Organization FC Finance Commission FCV Fragility, Conflict and Violence FDAP Fond de Développement Agropastoral (Agropastoral Development Bank) FER Fond d’Entretien Routier (Road Maintenance Fund) FGM Female Genital Mutilation FNEC Fédération Nationale des Eleveurs de Centrafrique (National Federation of Central African

Livestock Keepers)

FM Financial Management GDP Gross Domestic Product GHG Green House Gas GII Gender Inequality Index GIS Global Information Systems GPS Global Positioning Systems GRM Grievance Redress Mechanism GRS Grievance Redress Service Ha Hectare HDI Human Development Index HIBTP Customized Accounting Software HIMO Haute Intensité de Main-d’œuvre (High Labour Intensive Works) HIV Human Immunodeficiency Virus IBRD International Bank for Reconstruction and Development IDA International Development Agency ICR Implementation Completion report ICRA Institut Centrafricain de Recherche Agricole (Central African Institute for Agricultural

Research) ICT Information and Communication Technology IDPs Internally Displaced Persons IIR Internal Rate of Return IFAD International Fund for Agriculture Development (Fond International de Développement

Agricole) IFR Interim Financial Report ILO International Labor Organization IMF International Monetary Fund INDC Intended Nationally Determined Contribution INGOs International Non-Governmental Organizations IP Innovation Platform IPC Integrated Phase Classification (Famine Classification) IPF Investment Project Finance IPMP Integrated Pest Management Plan IPPF Indigenous Peoples Policy Framework IPs Indigenous Peoples IRR Economic Internal Rate of Return ISA Internal Standard Audit ISP Implementation Support Plan ISR Implementation Status and Results Report Kcal Kilocalories km Kilometers LIPW Labor Intensive Public Works LRMC Local Road Maintenance Committee LRRD Linking Relief Rehabilitation and Development M&E Monitoring and Evaluation MARD Ministry of Agriculture and Rural Development MFI Micro Finance Institution MINUSCA Mission Intégrée Multidimensionnelle des Nations Unies pour la Stabilisation en République

Centrafricaine (United Nations Multidimensional Integrated Stabilization Mission in the Central African Republic)

MIS Management Information System MOM Management, Operation and Maintenance MPMC Micro Project Management Committee NGO Non-governmental Organization

NPK Nitrogen, Phosphorous and Potassium Blended Fertilizer NPSC National Project steering Committee NPV Net Present Value NTIU National Technical Implementation Unit NTPCU National Technical Project coordination Unit OHADA Organisation pour l’Harmonisation en Afrique du Droit des Affaires (Organization for the

Harmonization of Business Law in Africa) OM Operations Manual ONASEM Office National de Semences (National Seed Office) ONFR Organisation Nationale des Femmes Rurales "Fleurs de Centrafrique"(National Organization

of Rural Women “Flowers of Central Africa”) ONMAP Office National de Matériels Agro-Pastoraux OOPP OP

Objective Oriented Project Planning Operations Policy

PACE Participatory Action for Community Enhancement PDO Project Development Objective PIM Project Implementation Manual PIU Project Implementation Unit PMP Pest Management Plan PNIASAN Plan National d’Investissement Agricole et de Sécurité Alimentaire et Nutritionnelle (National

Plan for Agricultural Investment and Food and Nutrition Security) PPP Public-private Partnership PPSD Project Procurement Strategy for Development PRA Participatory Rural Appraisal PRADAC Projet de Relance Agricole et d’Appui au Développement de l’Agribusiness en Centrafrique

(Agriculture Recovery and Agribusiness Development Support Project) PRSA-AC Programme Régionale Sécurité Alimentaire en Afrique Centrale (Regional Nutrition and Food

Security Program in Central Africa) RAP Resettlement Action Plan RCP Rural Connectivity Project RCPCA Plan National de Relèvement et de Consolidation de la Paix en Centrafrique (National Plan

for Rebuilding and Peace Consolidation in Central African Republic) RPF Resettlement Policy Framework SAM Severe and Acute Malnutrition SBD Standard Bidding Documents SC Steering Committee SCD Systematic Country Diagnostic SDRASA Stratégie de Développement Rural, Agricole et de Sécurité Alimentaire (Rural Development

Strategy, Agriculture and Food Security) SEA Sexual Exploitation and Abuse SGBV Sexual and Gender Based Violence SME Small and Medium Enterprise SMS Short Message Service (text) SoE Statement of Expenditures SRFP Standard Request for Proposals STEP Systematic Tracking and Exchanges in Procurement SORT Systematic Operations Risk Rating Tool SUN Scaling Up Nutrition Movement SYSCOHADA Assigned Accounting System in West and Central African Francophone Countries TA Technical Assistance TBD To Be Determined TIMPs Technologies, Innovations and Management Practices TPM Third Party Monitoring

ToR Terms of Reference TTL Task Team Leader UN United Nations UNOPS United Nations Office for Project Services USAID United States Agency for International Development VC Village Committee VMGs Vulnerable and marginalized groups WA Withdrawal Application WB World Bank WFP World Food Program WHO World Health Organization

The World Bank CAR-Agriculture Recovery and Agribusiness Development Support Project (ARADSP) (P165855)

TABLE OF CONTENTS

DATASHEET ........................................................................................................................... 1

I. STRATEGIC CONTEXT ...................................................................................................... 7

A. Country Context................................................................................................................................ 7

B. Sectoral and Institutional Context .................................................................................................... 8

C. Relevance to Higher Level Objectives ............................................................................................. 11

II. PROJECT DEVELOPMENT OBJECTIVES ............................................................................ 11

A. PDO ................................................................................................................................................. 11

B. Project Beneficiaries ...................................................................................................................... 12

C. PDO-Level Results Indicators .......................................................................................................... 12

III. PROJECT DESCRIPTION .................................................................................................. 12

A. Project Components ....................................................................................................................... 12

B. Project Cost and Financing ............................................................................................................. 18

C. Lessons Learned and Reflected in the Project Design .................................................................... 19

IV. IMPLEMENTATION ARRANGEMENTS ............................................................................ 20

A. Institutional and Implementation Arrangements .......................................................................... 20

B. Results Monitoring and Evaluation Arrangements......................................................................... 22

C. Role of Partners .............................................................................................................................. 23

V. PROJECT APPRAISAL SUMMARY ................................................................................... 23

A. Economic and Financial Analysis ................................................................................................. 23

B. Technical ......................................................................................................................................... 26

C. Financial Management ................................................................................................................... 26

D . Procurement .................................................................................................................................. 28

E. Social (including Safeguards) .......................................................................................................... 28

F. Environment (including Safeguards) ............................................................................................... 29

G. World Bank Grievance Redress ...................................................................................................... 31

VI. KEY RISKS ..................................................................................................................... 31

A. Overall Risk Rating and Explanation of Key Risks ........................................................................... 31

VII. RESULTS FRAMEWORK AND MONITORING .................................................................... 33

ANNEX 1: Implementation Arrangements and Support Plan ................................................. 42

ANNEX 2: IMPLEMENTATION ARRANGEMENTS .................................................................... 56

ANNEX 3: IMPLEMENTATION SUPPORT PLAN ...................................................................... 73


ANNEX 4: ECONOMIC AND FINANCIAL ANALYSIS ................................................................. 80

ANNEX 5: GHG ACCOUNTING ANALYSIS ............................................................................... 87

ANNEX 6: RISK MANAGEMENT OF GENDER BASED VIOLENCE ............................................... 90


Page 1 of 93

DATASHEET

BASIC INFORMATION BASIC_INFO_TABLE

Country(ies) Project Name

Central African Republic

CAR-Agriculture Recovery and Agribusiness Development Support Project (ARADSP)

Project ID Financing Instrument Environmental Assessment Category

P165855 Investment Project Financing

B-Partial Assessment

Financing & Implementation Modalities

[ ] Multiphase Programmatic Approach (MPA) [✓] Contingent Emergency Response Component (CERC)

[ ] Series of Projects (SOP) [✓] Fragile State(s)

[ ] Disbursement-linked Indicators (DLIs) [ ] Small State(s)

[ ] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country

[ ] Project-Based Guarantee [✓] Conflict

[ ] Deferred Drawdown [ ] Responding to Natural or Man-made Disaster

[ ] Alternate Procurement Arrangements (APA)

Expected Approval Date Expected Closing Date

17-May-2019 30-May-2024

Bank/IFC Collaboration

No

Proposed Development Objective(s)

Increase agriculture productivity of small scale farmers, strengthen capacity of micro, small and medium agribusiness enterprises in the project area, and provide immediate and effective response in the event of an Eligible Crisis or Emergency


Page 2 of 93

Components

Component Name Cost (US$, millions)

Development of Productive Infrastructure and Competencies for Agriculture and Rural Entrepreneurship

10.00

Improvement of Public Infrastructure and Maintenance 7.50

Improvement of the quality of Agriculture Public Services and Project Management 7.50

Contingency emergency response 0.00

Organizations

Borrower: Ministre de l’Economie, du Plan et de la Coopération

Implementing Agency: Ministry of Agriculture and Rural Development

PROJECT FINANCING DATA (US$, Millions)

SUMMARY-NewFin1

Total Project Cost 25.00

Total Financing 25.00

of which IBRD/IDA 25.00

Financing Gap 0.00

DETAILS-NewFinEnh1

World Bank Group Financing

International Development Association (IDA) 25.00

IDA Grant 25.00

IDA Resources (in US$, Millions)

Credit Amount Grant Amount Guarantee Amount Total Amount

National PBA 0.00 25.00 0.00 25.00


Page 3 of 93

Total 0.00 25.00 0.00 25.00

Expected Disbursements (in US$, Millions)

WB Fiscal Year 2019 2020 2021 2022 2023 2024

Annual 0.89 2.88 4.77 6.66 6.59 3.20

Cumulative 0.89 3.77 8.55 15.21 21.80 25.00

INSTITUTIONAL DATA Practice Area (Lead) Contributing Practice Areas

Agriculture Climate Change, Environment & Natural Resources, Transport

Climate Change and Disaster Screening

This operation has been screened for short and long-term climate change and disaster risks

Gender Tag

Does the project plan to undertake any of the following?

a. Analysis to identify Project-relevant gaps between males and females, especially in light of country gaps identified through SCD and CPF

Yes

b. Specific action(s) to address the gender gaps identified in (a) and/or to improve women or men's empowerment

Yes

c. Include Indicators in results framework to monitor outcomes from actions identified in (b) Yes

SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT)

Risk Category Rating

1. Political and Governance High

2. Macroeconomic Substantial

3. Sector Strategies and Policies Moderate

4. Technical Design of Project or Program Substantial


Page 4 of 93

5. Institutional Capacity for Implementation and Sustainability High

6. Fiduciary High

7. Environment and Social Moderate

8. Stakeholders Substantial

9. Other

10. Overall High

COMPLIANCE

Policy Does the project depart from the CPF in content or in other significant respects?

[ ] Yes [✓] No

Does the project require any waivers of Bank policies?

[ ] Yes [✓] No

Safeguard Policies Triggered by the Project Yes No

Environmental Assessment OP/BP 4.01 ✔

Performance Standards for Private Sector Activities OP/BP 4.03 ✔

Natural Habitats OP/BP 4.04 ✔

Forests OP/BP 4.36 ✔

Pest Management OP 4.09 ✔

Physical Cultural Resources OP/BP 4.11 ✔

Indigenous Peoples OP/BP 4.10 ✔

Involuntary Resettlement OP/BP 4.12 ✔

Safety of Dams OP/BP 4.37 ✔

Projects on International Waterways OP/BP 7.50 ✔

Projects in Disputed Areas OP/BP 7.60 ✔

Legal Covenants


Page 5 of 93

Sections and Description The Recipient shall, within one (1) months of the date of effectiveness, establish, and at all times during Project implementation maintain, the National Project Steering Committee (“NPSC”) with composition and mandate acceptable to the Association in accordance with the provisions of Section I A. 2. of Schedule 2 to the Financing Agreement.

Sections and Description The Recipient shall, not later than six (6) months after the Effective Date cause the Fiduciary Agent to recruit and thereafter retain an external auditor with qualifications and experience satisfactory to the Association in accordance with the provisions of Section I J. 1. of Schedule 2 to the Financing Agreement.

Sections and Description The Recipient shall, not later than two (2) months after the Effective Date, cause the Fiduciary Agent to recruit and thereafter retain a senior accountant and an internal auditor each with qualifications and experience satisfactory to the Association in accordance with the provisions of Section I J. 2. of Schedule 2 to the Financing Agreement.

Sections and Description The Recipient shall, not later than two (2) months after the Effective Date, cause the Fiduciary Agent to customize its existing accounting software to comply with the SYSCOHADA accounting system in accordance with the provisions of Section I J. 3. of Schedule 2 to the Financing Agreement.

Sections and Description The Recipient shall ensure that employees, agents, service providers, contractors and subcontractors carry out the Project in conformity with acceptable environmental and social standards, practices and codes of conduct (which shall, inter alia, contain measures that prohibit, endeavour to prevent and address Project-related gender-based violence and sexual exploitation and abuse), the provisions of the Recipient’s environmental and social laws, in accordance with the provisions of Section I D. 9. (a) of Schedule 2 to the Financing Agreement.

Sections and Description The Recipient shall, throughout Project implementation, cause the NTPCU to maintain and publicize the availability of a Project-level grievance redress mechanism and a feedback mechanism, in form and substance satisfactory to the Association, in order to hear and determine fairly and in good faith all complaints and feedback raised in relation to the Project, and take all measures necessary to implement the determinations made by said grievance feedback and redress mechanism in a manner satisfactory to the Association, in accordance with the provisions of Section I D. 9. (b) of Schedule 2 to the Financing Agreement.

Sections and Description The Recipient shall furnish to the Association, not later than November 30 of each year, the annual work plans and budgets approved by the Steering Committee for the Association’s review and approval; except for the annual work plan and budget for the Project for the first year of Project implementation, which shall be furnished no later than one (1) month after the Effective Date. Only the activities included in an annual work plan and budget expressly approved by the Association (each an “Annual Work Plan and Budget”) are eligible to be financed from the proceeds of the Financing, in accordance with the provisions of Section I C. 2. of Schedule 2 to the Financing Agreement.


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Conditions

Type Description

Effectiveness The Recipient has adopted the PIM, the Administrative and Financial Management Manual

and the Matching Grants Manual each in form and substance acceptable to the Association,

in accordance with the provisions of Article V, 5.01 (a) of the Financing Agreement. Type Description

Effectiveness The Recipient has executed the Fiduciary Contract with the Fiduciary Agent in form and

substance acceptable to the Association, in accordance with the provisions of Article V, 5.01

(b) of the Financing Agreement. Type Description

Disbursement No withdrawal shall be made under Disbursement Category 3 unless and until the Service

Agreement has been executed with the Service Provider, in accordance with the provisions

of Section III, B, 1 (b) of Schedule 2 to the Financing Agreement. Type Description

Disbursement No withdrawal shall be made under Disbursement Category 4 of the Project unless the

Recipient has determined that an Eligible Crisis or Emergency has occurred, has furnished to

the Association a request to include such activities in the Project in order to respond to said

Eligible Crisis or Emergency, and the Association has agreed with such determination,

accepted said request and notified the Recipient thereof, in accordance with the provisions

of Section III, B, 1 (c) (i) of Schedule 2 to the Financing Agreement. Type Description


Recipient has adequate staff and resources for the purposes of said activities, in accordance

with the provisions of Section III, B, 1 (c) (ii) of Schedule 2 to the Financing Agreement. Type Description


Recipient has adopted the EROM in form, substance and manner acceptable to the

Association, in accordance with the provisions of Section III, B, 1 (c) (iii) of Schedule 2 to the

Financing Agreement.


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I. STRATEGIC CONTEXT

A. Country Context

1. The Central African Republic (CAR) is a landlocked country in Central Africa with an estimated population of 4.9 million people1. The country has rich but largely unexploited natural resources in the form of diamonds, gold, uranium, forest, and petroleum deposits. With a Human Development Index (HDI) of 0.352 and a Gross Domestic Product (GDP) per capita of US$382 (2016), CAR is ranked 187th out of 188 countries in the HDI ranking, despite its vast natural resources. Recent estimates indicate that the CAR’s poverty rate2 increased from 62 percent in 2008 to 72.2 percent in 20173. 2. Fragility, conflict and violence (FCV) constitute pressing challenges for CAR, endangering pro-poor growth and human development. In 2013, the International Support Mission to the Central African Republic (Mission Intégrée Multidimensionnelle des Nations Unies pour la Stabilisation en République Centrafricaine, MINUSCA) fielded an 11,000-personnel peacekeeping force in response to sectarian violence Despite a surge in optimism after the elections in early 2016, the crisis in CAR has intensified and violence increased, resulting in a de-facto territorial partition. The 2013 escalation in violence has wreaked havoc on the economy, killing or displacing thousands, crippling the private sector, and leaving over 2.4 million people in dire need of assistance. Since 2013, up to 6,000 people have been killed, and over 600,000 people have been displaced. Gender-based violence (GBV) and attacks on civilians are common. Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome (HIV)/AIDS deaths reached 11,231 or 18.08 percent of total deaths4, and malnutrition deaths reached 3,674 or 5.92 percent of total deaths. A peace agreement was signed in February 2019 between the Government and 14 armed groups which could an improvement of the political and security situation, but its implementation so far has been slow and very challenging. Given the history with the seven previous peace agreements, a reversal could occur. 3. CAR is a member of the Organization for the Harmonization of Business Law in Africa (OHADA) and has ratified the OHADA Uniform Act, but more efforts are needed to improve the business climate and curtail corruption. CAR is ranked 184th (2018) on the Ease of Doing Business list. Enforcing a contract takes 188 days on average, and court costs amount to 82 percent of every claim. Less than 1 percent of the population has access to banking services. CAR is characterized by a large informal economy with widespread smuggling, with an estimated 30-50 percent of annual diamond production leaving the country clandestinely. 4. Trade in and out of the CAR is constrained by the landlocked position of the country, poor infrastructure, and restrictive policies. CAR imports foodstuffs, fuel, textile, machinery and pharmaceuticals. Eighty percent of imports pass through the Cameroon, Douala-Bangui corridor. Logistics costs are high, exacerbated by government taxes on exports (average tariff 14.9 percent) and import restrictions. CAR’s imports have increased at an annualized rate of 7.2 percent, from US$320 million in 2010 to US$560 million5 in 2018. Agriculture exports as a

1 UN Human Development Report-Central African Republic, 2016. 2 At the international poverty line of US$1.90 per day in 2011 purchasing-power parity terms. 3 The 2008 survey was the last nationally representative household survey. It documented poverty levels at 50 percent in urban areas and 69 percent at the rural level. In 2008 nearly two-thirds of CAR’s population lived in rural areas. High levels of displacement have aggravated poverty. 4 Per the latest World Health Organization (WHO) data for CAR published in May 2014. 5 Source : BEAC, Balance de Paiement Republic Centrafricaine, 2018.


Page 8 of 93

percentage of GDP are very low and declined dramatically between 2000 and 2016, especially for the key cash crops cotton and coffee, which comprise less than 2 percent of GDP. 5. Subsistence agriculture, together with forestry, remain the backbone of the CAR economy. The agriculture sector accounts for 70 percent of total employment. Subsistence agriculture, livestock rearing, and hunting and fishing contributed respectively, 32, 14, and 8 percent to overall GDP in 2016 (SCD, 2019). Industry contributes less than 20 percent of the country's GDP, mainly artesian diamond mining, breweries, and sawmills. Services currently account for 29 percent of GDP, largely because of the oversized government bureaucracy and high transportation costs arising from the country's landlocked position.

B. Sectoral and Institutional Context 6. Agriculture plays a key role in CAR—economically, socially, politically, and environmentally. Eighty percent of the population (4 million people out of a total of 4.9 million people) depends on agricultural activities (crop production, livestock rearing, fishing) as a major livelihood source. Agricultural products (i.e. cotton and coffee) accounted for about 12.2 percent of total exports in 2000, and declined to 5.2 percent in 2016 (International Monetary Fund (IMF), 2016). About 2 million hectares (3.2 percent of the total land area) is arable and under permanent crops, while 3 million hectares (4.8 percent of the total land area) is under permanent pasture6. Key food crops include cassava, groundnuts, sorghum, millet, maize, sesame, plantains and the major export crops are cotton, coffee, and tobacco. Farming continues to be dominated by traditional subsistence-oriented shifting agro-pastoral systems. The livestock subsector makes a significant contribution to agricultural GDP (30 percent) and to national GDP (14 percent). 7. Crop and livestock production is well below pre-crisis levels, and the sector is in dire need of recovery. Conflict, violence and instability have negatively impacted the ability of the agriculture sector to meet domestic food needs. Before the war, 75 percent of all food consumed in the country was produced locally. There has been a decline of 46 percent in food crop production, 55 percent in livestock and 33 percent in the forestry and fishery sub-sectors. An Integrated Phase Classification (IPC) analysis carried out in February 2017 estimated that one million people in CAR were severely food insecure, with a 56 percent prevalence rate in rural areas. The agricultural economy has collapsed and agriculture trade has slowed dramatically. 8. Malnutrition is linked to poverty and affects particularly women and children. The daily food consumption deficit per capita in CAR is estimated at 360 Kcal, significantly above the average deficit of 129.6 Kcal in Sub-Saharan African countries (20167). Chronic malnutrition has risen from 28.5 percent in 1995 to 40.8 percent in 2014. About 46 percent of the women age 15-49 are anemic8 and an estimated 39,000 children under 5 suffer from severe acute malnutrition (SAM)9. Approximately 1.1 million children suffer from food insecurity, with 50 percent affected by stunting. Agriculture-related factors that have contributed to these trends include: (i) limited access to land due to the threat of violence and conflict; (ii) theft of crops by rebel groups; (iii) low agriculture productivity; (iv) low levels of food stocks; and (v) limited off-farm income generating opportunities.

6 The FAOSTAT, 2015. 7 https://data.worldbank.org/indicator/SN.ITK.DFCT?locations=ZG 8 https://scalingupnutrition.org/wp-content/uploads/2018/12/Central_African_Republic_Country_Profile_2018.pdf 9 Integrated Food Security Phase Classification, ‘République centrafricaine – Actuelle – Analyse de la situation de l’insécurité alimentaire

aiguë’, August 2016, www.ipcinfo.org/ipcinfo-detail-forms/ipcinfo-map-detail/en/c/445331/, accessed 4 January 2017.

https://en.wikipedia.org/wiki/Cotton

https://en.wikipedia.org/wiki/Coffee

https://en.wikipedia.org/wiki/Tobacco

http://www.ipcinfo.org/ipcinfo-detail-forms/ipcinfo-map-detail/en/c/445331/


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9. The road network in CAR forms the backbone of the country’s transport system, but it is underdeveloped and poorly maintained. Out of 24,137 km of national, sub-national, and rural roads, only 3.5 percent (855 km) are paved. About 80 percent of internationally traded goods pass through the Douala-Bangui corridor, which is not fully paved, and where burdensome formal and informal administrative barriers contribute to lengthy delays and rising transport costs. The 15,500 km rural road network is insufficient in scope, suffers from inadequate maintenance, and remains a major constraint in limiting farmers’ access to markets and basic social services. No rural road maintenance strategy is in place, resulting in extended periods of poor maintenance. The Fond d’Entretien Routier (FER, Road Maintenance Fund) is hampered by weak governance and inadequate resources. Of all road maintenance funds, only an estimated 5 percent go to rural roads. 10. Policies and plans to develop agriculture in CAR have failed to produce intended results. Agriculture sector development has been guided by a series of strategic planning documents10 that have existed in a policy vacuum. Despite their existence, resource allocation to the agriculture sector has remained insignificant. Productivity growth in the sector has been further constrained by an unfavorable tax regime, outdated land laws, and the collapse in agriculture research and development (R&D), agriculture education, and agriculture extension services.

11. Institutional capacity in the agriculture sector is fragmented. The agriculture sector is led by the Ministry of Agriculture and Rural Development (MARD) and the Ministry of Livestock and Animal Health. Both ministries rely on specialized institutes and agencies11 for the implementation of their activities. While the Central African Institute for Agricultural Research (ICRA) and the National Federation of Central African Breeders (Fédération Nationale des Eleveurs de Centrafrique, FNEC) are specialized, the Central African Agriculture Development Agency (Agence Centrafricaine de Développement Agricole, ACDA) and National Agency for Livestock Development (Agence Nationale de Développement de l’Elevage, ANDE) have broad mandates ranging from the provision of agriculture extension/veterinary services, cooperative strengthening, input provision and marketing of agriculture commodities. All of them are underfunded and in urgent need of reform. The Université de Bangui, Faculté de Droit et des Sciences Economiques is the only institute for agriculture education which also provides agriculture extension services. Two main farmer organizations12 represent farmers at the national level, but both are poorly resourced. The private agri-business sector is represented by the Agriculture Chamber of Commerce, which includes the federation of cotton producers and is undergoing restructuring. 12. Availability of financial services for the agriculture sector remains very limited. Suffering from a weak market infrastructure and inadequate legal and judicial frameworks, the financial sector remains small and underdeveloped. The Fond de Développement Agropastoral (Agropastoral Development Bank, FDAP) is not operational. Microfinance accounts for 1 percent of the total credit facilities, serving 0.5 percent of the population. Mobile phone penetration currently stood at 36 percent in 2016 (SCD, 2019), a level that provides opportunities for bundling mobile banking services to farmers, whilst posing significant challenges.

10 (i) Sector Consultations for Rural Development; (ii) Agriculture Development Plan 2002; (iii) Current State of the Rural Development Sector; (iv) Rural Development Strategy, Agriculture and Food Security (SDRASA), 2011; and (v) National Plan for Agricultural Investment and Food and Nutrition Security (PNIASAN). 11 Central African Institute for Agricultural Research (ICRA); (ii) the ACDA; (iii) the National Agency for Livestock Development (ANDE); and (iv) the FNEC, National Federation of Central African Breeders. 12 The Concertation Nationale des Organisations Paysannes de la Centrafrique (CNOP) and the Organisation Nationale des Femmes Rurales "Fleurs de Centrafrique."


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13. An urgent priority for CAR is to enhance the economic resilience of vulnerable groups through agriculture development. In the short run, the main challenge is to boost productivity, increase agriculture output and reduce food insecurity. Skills development and job creation, especially for youth, will lay the foundations for the emergence of a dynamic and economically viable agribusiness sector, thus providing a pathway out of poverty for hundreds of thousands of rural families and contribute to breaking the vicious cycle of violence.

14. Gender. With a Gender Inequality Index (GII) score of 0.648, CAR ranks 149th out of 159 countries in the 2015 HDI. Eighty one percent of women are employed in agriculture, compared to 67 percent of men. Women farmers are mainly involved in the production of staple crops and breeding of small stock for household consumption, while men own larger stock (cows, goats) and perennial cash crops. Over 80 percent of women live below the poverty line, compared to 69 percent for men. The difference can be attributed partly to a gender productivity gap in agriculture. Multiple factors explain the lower productivity levels of women farmers: (i) smaller farm size (land allocated by husband); (ii) less frequent access to agriculture extension services; (iii) lower use of agriculture inputs due to low levels of literacy13; (iv) heavier work load including household tasks; and (v) conflict and civil unrest limiting the mobility of women and their participation in markets14 (to buy inputs or sell products). 15. Youth and jobs. Jobs for youth are urgently needed in CAR as an alternative to participation in illicit trade or armed groups. Youth are driven from rural areas due to a lack of job prospects, prevalence of violence, and high insecurity. As a result, urban crime is on the rise. Low levels of literacy amongst youth and an absence of skills training institutes limits their ability to build competencies. To bridge the skills gap, the Agence Centrafricaine pour la Formation Professionnelle et l’Emploi (ACFPE, Central African Agency for Professional training and Employment) has partnered with the International Labor Organization (ILO) to provide entrepreneurship and business planning training to registered youths, to develop business plans to access micro-credit from Credit Mutuel. The promotion of commercial smallholder farming will help new temporary, part time and permanent jobs created by commercial agriculture to offer youth a potential to generate income, consolidate peace, reinforce stability and bolster resilience.

16. Climate change. Temperatures in CAR are projected to increase by 1.25-2.75 degrees Celsius by 2080. CAR greenhouse gas emissions reduction targets are 5 percent and 25 percent respectively, in the 2030 and 2050 horizons. Climate change is projected to exacerbate extreme weather events like torrential rains, droughts and floods. Weather hazards (floods and droughts) and rising temperatures increase incidents of animal and plant pests and diseases, exacerbating agriculture losses and food insecurity. The high annual deforestation rate of 0.4 percent is a driver of changes in local agro-climatic conditions, and water availability and quality, which points to the need to explore and promote alternative sources of energy to reduce pressure on forests. 17. In its Intended Nationally Determined Contribution (INDC), CAR aims to maintain an annual rate of growth of agricultural activities of 6 percent and to stabilize the rate of food insecurity at 15 percent. Agriculture and food security are identified as the sectors most vulnerable to climate change. Intended adaptation measures specifically mention climate-smart agriculture that involves crop diversification, soil erosion control and integrated pest management, and further includes: (i) adjustment of the policy framework; (ii) improved knowledge of resilience to climate change; and (iii) sustainable management of the agricultural, forestry and

13 World Development Indicators, April 2017. 14 Social Injustice Gender Index (SIGI) https ://www.genderindex.org/country/central-african-republic/.

https://www.genderindex.org/country/central-african-republic/


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animal husbandry systems, amongst others. The cost of implementing the country’s INDC commitments are estimated at about US$2.3 billion.

C. Relevance to Higher Level Objectives

18. The project is aligned with the current priorities of the Government’s post-conflict transition phase and the World Bank Group’s twin goals of eradicating extreme poverty and boosting shared prosperity. The operation fully supports the strategic objectives of Pillar 3 of the National Plan for Rebuilding and Peace Consolidation in CAR (RCPCA, 201715) and Support of Economic Recovery and Pro-Poor Growth, which seeks, inter alia, to: (a) boost and durably develop productive sectors (agriculture and livestock farming, extractive and forestry industries); (b) repair and build infrastructures (including electricity, roads and communication network); and(c) ensure the stability of the macroeconomic framework.

19. The proposed operation directly supports relevant objectives of the Government and the World Bank Group's Country Engagement Note16 (CEN, 2015). The core focus of the proposed operation is an important element in the CEN's Second Pillar: Basic support to livelihoods, including providing agricultural support. The project is also consistent with the findings of the Systematic Country Diagnostic (SCD, 201917), as it is fully aligned with some of the key measures identified in the SCD which ensure inclusiveness by: (i) providing assistance to the most vulnerable, including the food insecure; (ii) investing to increase productivity of subsistence farmers and pastoralists; and (iii) creating an enabling environment for service delivery and income generation, and improving rural accessibility. In addition, the project is in line with the three areas of focus proposed under the new Country Partnership Framework (CPF,2019) to be discussed by the Board in FY 2020: (i) institutional strengthening; (ii) building resilience and support to the country’s physical and economic recovery; and (c) promoting growth and generating employment.

20. The project is also consistent with major strategic initiatives for CAR, including the World Bank State Consolidation Development Program 2 and the Second Pillar (vulnerability and resilience) of the World Bank’s Africa Strategy and Africa Climate Business Plan (201818). Finally, it is aligned with the outcomes of the Central African Economic Commission’s (CEEAC) Regional Nutrition and Food Security Program (Programme Régionale Sécurité Alimentaire en Afrique Centrale, PRSA-AC) and other relevant policies19.

II. PROJECT DEVELOPMENT OBJECTIVES

A. PDO

The project development objective (PDO) is to increase agricultural productivity of small-scale farmers, strengthen capacity of micro, small and medium-sized agribusiness enterprises in the project area, and provide immediate and effective response in the event of an Eligible Crisis or Emergency

15 RCPCA: Plan National de Relèvement et de Consolidation de la Paix en Centrafrique, 2017. 16 Report 96209. Approved on July 13, 2015. 17 Report No. 125268-CF, January 17, 2019. 18 World Bank. 2018. Accelerating Climate-Resilient and Low-Carbon Development: Africa Climate Business Plan. 19 Regional Agriculture Investment, Food Security and Nutrition Program (PRIASAN), and its Common Agricultural Policy, which seeks to reduce poverty and food insecurity. Other policies include Food and Nutrition Security Policy (currently under finalization), the National Agricultural Investment Program for Food Security and Nutrition - PNIASAN, SUN -Scaling Up Nutrition Movement.


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B. Project Beneficiaries

21. The primary beneficiaries of the project will be 20,000 small-holder farmer households around peri-urban

zones, approximately 40 Agribusiness Micro, Small, and Medium Enterprises (Agri-MSMEs, 600 farmer groups

(associations/cooperatives) in the project area (see below), and rural households nation-wide in case the

agriculture emergency contingency component is triggered.

22. Indirect beneficiaries are other Agri-MSMEs20 and their employees, upstream and downstream in the

agriculture value chains, who depend on reliable supplies of agricultural products; central and decentralized

government services, which allocate scarce public funds to supporting agriculture; institutions responsible for

generating and disseminating critical information on the agriculture sector, and the offices responsible for

managing responses to agricultural emergencies.

C. PDO-Level Results Indicators

1. Direct project beneficiaries, of which female and youth beneficiaries (Percentage); 2. Yield per hectare of selected indicative crops, changes in yield (tracked by gender) (Percentage); 3. Increase in sales turnover among MSMEs supported by the project (Number)21; and 4. Reduction in mortality rate of small stock and chickens (Percentage)

III. PROJECT DESCRIPTION

23. Project area. The targeted project intervention zones are: (i) Ouham and Ouham-Pendé regions in the north-western part of the country; (ii) Bamingui Bangoran and Vakaga regions in the north-eastern part; and (iii) Ouaka around Bambari in the central corridor. In addition, Bangui will benefit from targeted interventions. These regions were selected based upon the following considerations: (i) high agriculture production potential; (ii) presence of ongoing rural road rehabilitation works; (iii) potential for creating jobs; (iv) no ongoing conflict; (v) incidence of food insecurity and malnutrition. Additional information on the targeted project area is provided in Annex1.

A. Project Components

24. The project has 4 components: (i) Component 1 – Development of Productive Infrastructure and Competencies for Agriculture and Rural Entrepreneurship; (ii) Component 2 – Improvement and Maintenance of Public Infrastructure; (iii) Component 3 – Improvement of the quality of Agriculture Public Services and Project Management; and (iv) Component 4 – Contingency Emergency Response. 25. The project approach will be a combination of Community-driven Development22 (CDD) and direct support

to agri-MSMEs based on viable business plans. The CDD approach will be combined with finance for

20 Agri-MSMEs are both direct and indirect beneficiaries as not all Agri-MSMEs would be directly supported by the project but would be able to benefit indirectly from improved supply of produce from project supported farmers, services, etc. 21 This indicator is used as a proxy indicator to track the improved capacity of Agri-MSMEs 22 CDD is a methodology that provides social and infrastructure services, to organize economic activity, to empower poor and marginalized people, to improve governance, and to enhance security. CDD can fill gaps created by market failure.


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entrepreneurship promotion for agribusiness development (Component 1), while needed infrastructure for

agribusiness and delivery of improved agriculture public goods and services will be supported through

Components 2 and 3 respectively. Annex 1 provides details regarding the project approach and sequencing of

project activities, including a schematic representation of the use of CDD as a foundation for agribusiness support.

Component 1 – Development of Productive Infrastructure and Competencies for Agriculture and Rural Entrepreneurship (IDA: US$10 million equivalent) 26. This component seeks to assist in rehabilitating and/or building critically needed productive infrastructure through the provision of matching grants for community-driven subprojects identified by communities. It will support measures designed to increase agricultural productivity and production (for both crops and animals) in targeted areas. Nutrition and climate-sensitive technologies and management practices will be promoted. Agribusiness MSMEs will also be promoted through an Innovation Platform (IP)23. The component is comprised of two sub-components: (i) community managed productive infrastructure; and (ii) development of agriculture and rural entrepreneurship. Sub-component 1.1: Community Managed Productive Infrastructure (IDA: US$4 million) 27. This sub-component will promote community managed productive infrastructure to reinforce social cohesion and help smallholder farmers to have better access to productive infrastructure and increase their productivity and agriculture output, including agro-pastoral and fisheries production based on specific community demand. The project will finance community-driven subprojects selected through participatory planning processes, which will be based on priority needs expressed by communities. Twenty thousand households organized into 600 groups will benefit. 28. Community infrastructure24 will comprise low-cost micro infrastructures identified in a participatory way by communities. Typically, public good in character, productive community infrastructure includes, inter alia, water points, footpaths providing access to the local road network, small-scale irrigation or drainage systems, cattle dips, vaccination centers, community-based early warning systems and communication devices. 29. Selection criteria for community micro-project proposals include women and girl’s economic empowerment indicators. Community proposals that would enable women’s access to land, productive assets25 and or capacity building (literacy, skills) will be prioritized. International Non-governmental Organizations (NGOs) with expertise in addressing gender-based inequality, sexual and gender based Violence (SGBV) and facilitating changes in social norms with respect to treatment of women will be partnered with. Community facilitators will be provided with tools e.g. to establish positive role models for men and boys within the community and educate people about SGBV and its harmful consequences. Community mapping will be facilitated to identify services available to women, men, girls and boys to prevent and respond to SGBV.

23 An innovation platform is a multi-stakeholder forum that facilitates exchange of ideas, joint learning, collaboration and development of innovative solutions to market failures and agribusiness constraints: farmers, traders, food processors, researchers, government officials etc. 24 small-scale structures, technical facilities and systems built at the community level that provide basic services to people and that are critical for the social cohesion and economic stability of a community. 25 Agriculture inputs, fertilizer, seed, etc.


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30. Producer groups with access to matching grants will also be able to rebuild their animal stocks. The project will also finance the development of improved livestock husbandry training material as well as investments in upgrading animal products marketing, processing and conservation infrastructure services and equipment. Sub-component 1.2: Development of Agriculture and Rural Entrepreneurship (IDA: US$6 million) 31. This sub-component will support agribusiness start-ups, with emphasis on women and youth-based businesses. Existing businesses and start-ups in commercial agriculture will be promoted through a pilot business start-up accelerator/incubator in Bangui comprised of a competitive business grant fund with a technical assistance (TA) window. Entrepreneurs with innovative business ideas will be invited to submit business plans to access matching grants. Annually, through a competitive process, entrepreneurs with innovative business ideas will access a series of services: (i) TA for business plan development; (ii) entrepreneurship and managerial skills training; (iii) matching grants; and (iv) business mentoring. 32. The competitive grant fund will have four distinct phases. During the identification phase, a market scan will be carried out to facilitate the identification of potential agribusiness enterprises and preselect candidates. In phase two, the preselected candidates will be invited to participate in the business competition. Phase three will involve screening and evaluation of submitted business models/plans. Successful plans will receive TA through the TA window to review them. During Phase four, the successful candidates will access the matching grants for implementation of the business plans, mentoring and monitoring of business performance. The Matching Grant will have two windows: (i) the first window will target small-scale farmers, youth-based enterprises, and women micro-enterprises; and (ii) the second one will serve as accelerator funding targeting small and medium-sized agri-enterprises. Details on the competitive grant funding mechanism are provided in Annex 1. Component 2: Improvement and Maintenance of Public Infrastructure (IDA: US$7.5 million equivalent). 33. The revival of the agriculture sector will depend in part on the reduction of transaction costs for improved access to markets. The objective of this component is to improve connectivity, mobility and access to local markets and associated agri-logistics services in selected zones. The component is comprised of two sub-components: (i) Sub-component 2.1 Infrastructure Rehabilitation; and (ii) Sub-component 2.2 Infrastructure Maintenance. Sub-component 2.1 Rehabilitation of Public Infrastructure (IDA: US$7.0 million) 34. This sub-component will focus on ensuring all-season accessibility of selected rural roads by rehabilitation and maintenance through Labor Intensive Public Works (LIPW-HIMO in French). Two types of infrastructure will


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be rehabilitated: (i) rural roads for improved connectivity and mobility; and (ii) markets with associated agri-logistics services26 for improved market access along agriculture trading corridors in the project area. 35. Rural roads will be selected based on criteria that comply with those proposed by the Rural Connectivity Project (RCP, P160500, approved on June 30, 2017). The criteria include: (i) government priorities in the selected project zones; (ii) roads selected for rehabilitation by the RCP; (iii) roads used by the private sector for transporting agriculture production and inputs; (iv) roads selected to ensure maximum impact on agriculture production and beneficiary groups. During the preparation of the RCP, extensive consultations were undertaken with the Government to prioritize roads in the Ouham and Ouham-Pende prefectures. A total of 250 km will be rehabilitated, and 300 km maintained. 36. The project will build on the RCP and complement it where required. Investments in rural roads will assist farmers and agri-MSMEs to facilitate access to input and output markets. A Delegated Management Agency will be contracted to manage and supervise the construction of rural roads and public logistic infrastructure using World Bank quality standards for works that respect environmental and social safeguards. As incidence of GBV is high in the project zone, the project will mitigate against project-related risk of sexual exploitation and abuse by complying with World Bank SGBV social safeguard requirements. 37. A demand assessment, which is one of the first activities that will be carried out during the first year of the project implementation, to determine: (i) existence and type of markets in the project zone; (ii) demand for agri-logistics services associated with these markets; (iii) ability and willingness to pay for services; and (iv) site identification. Based on this assessment, a go- no- go decision will be taken on whether to build, rehabilitate or contract existing infrastructure. The design and scope of any infrastructure will be determined by the assessment. Sub-component 2.2 Infrastructure Maintenance (US$0.5 million) 38. The management, operation and maintenance of public infrastructure post rehabilitation remains a key concern. There is a weak institutional framework (policy, organizations and mechanisms) to ensure the quality and maintenance of the roads post rehabilitation. This sub-component will strengthen the institutional framework for road maintenance and pilot innovative public-private infrastructure management models. 39. Rural roads. Community rehabilitation brigades will be trained and established as local road maintenance committees (LRMC). The LRMC would be mandated to administer rural road maintenance. Mapping of existing road maintenance mechanisms will inform the development of a rural road maintenance strategy that will be partially resourced through the National Road Fund. In addition, all construction enterprises and NGOs procured by the Delegated Management Agency or AGETIP-CAF will be mandated to communicate Codes of Conduct for staff that include health and safety standards and provisions to prohibit sexual exploitation and abuse for all persons. 40. Management, operations and maintenance of agribusiness logistics infrastructure. A call for proposals will be launched to invite private sector operators to manage, operate and maintain the project’s infrastructure investments. A management, operation and maintenance (MOM) contract will be signed with the private sector under a public-private partnership (PPP) agreement. The MOM contract will be determined by demand-users-service provider – cost-model. The main common features are that the MARD engages the contractor to manage

26 Agri-logistic services include markets with associated areas for livestock auctions, storage facilities, etc.


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service delivery for a duration of two to five years. The MOM contracts will outline management tasks, activities, expected outputs, performance-based fee and standards. The operator will charge and collect a service fee from users for services rendered. The contract will be terminated if services rendered and maintaince do not meet agreed performance standards.


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Component 3. Improvement of the Quality of Agriculture Public Services and Project Management (IDA: US$7.5 million equivalent) 41. This component includes capacity building, TA, project management, supervision and ensures compliance with social and environmental safeguards requirements, monitoring and evaluation (M&E). Capacity building will support the establishment of public-private partnerships in the delivery of agriculture services and improve government project management capacity at central and decentralized levels. Sub-component 3.1: Improvement of the quality of Agriculture Public Services (IDA: US$4 million) 42. This sub-component is focused on building MARD’s capacity to deliver quality agriculture public services. TA will be provided to implement key provisions under the Seed Law to spur the development of seed markets (R&D, trials, registration, control and certification). The project will support capacity building of ICRA to rebuild its seed bank and adopt nutrition and climate sensitive technologies and strengthen the National Seed Office (Office National de Semences, ONASEM) capacity for seed control and certification. Finally, in collaboration with the European Union (EU) financed Bekou Project and Food Agriculture Organization (FAO), the project will support the Agriculture Chamber of Commerce to operationalize a one-stop service window for rural enterprises. The project will finance TA, workshops, training and analytic studies. 43. In partnership with World Food Program (WFP), TA will be provided to build MARD capacity’s at national and decentralized levels to improve planning, surveillance and M&E capacity. The project will finance training and capacity building of relevant government agencies, TA, workshops, equipment for surveillance and data management, and early warning, pest and disease surveillance services (e.g. Fall Army Worm and cassava mosaic disease). The project will also support, to a limited extent, the dissemination of four other agriculture policies: (i) the agro-pastoral code; (ii) cooperative law; (iii) the cotton strategy and road map; (iv) early warning, pest and disease management policy. The project will finance the costs related to the dissemination of key measures enacted by these laws, once these laws are approved by parliament as prioritized by Government. 44. Agriculture public services will be supported to disseminate climate and nutrition smart agriculture (CNSA) technologies and practices (where possible Information and Communication Technology (ICT) enabled). The services will improve farmer producer group access to climate information, climate smart agriculture (CSA) advice (e.g. climate risk assessment and management), plant and animal health advice and vaccines. Emphasis will be on promoting the delivery of services with a specific gender lens. Sub-component 3.2: Project Management, and Monitoring and Evaluation (IDA: US$3.5 million) 45. This sub-component will ensure management, supervision and monitoring of the project, including proper monitoring of environmental and social safeguards policies. The support will also include a communication strategy to build local ownership and help disseminate the project’s results. The project will finance a baseline study, mid-term evaluation, and a final impact assessment of the project.


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46. The project will finance operating costs of the National Technical Project Coordination Unit (NTPCU) located within MARD, and the incremental costs of the project’s fiduciary agency (Agence d’Exécution des Travaux d’Intérêts Publics en Centrafrique (Implementing Agency for Public Works in Central Africa, AGETIP-CAF27) and other executing agencies (e.g. United Nations (UN) Agencies, NGOs). TA will be provided on a continual basis to the technical unit on CDD. The M&E system will be developed with TA from WFP to build and consolidate existing data sets. 47. To facilitate supervision and project implementation, third-party monitoring will be indispensable especially as some of the project zones are fragile and prone to violence and instability. An SGBV information system that collects and stores confidential data that is useful for analyzing incident rates, types, risk factors, drivers, factors, survivor and perpetrator details, or case outcomes will complement this. Component 4: Contingency Emergency Response (IDA: US$0.0 million) 48. This component will provide support for immediate response to an eligible crisis or emergency, as needed. A crisis or emergency eligible for financing is an event that has caused, or is likely to imminently cause, a major adverse economic and/or social impact to the borrower, associated with a natural or man-made crisis or disaster. This component will allow the Government to request a reallocation of project funds to partially cover emergency response and recovery costs. This component will be triggered if: (a) the Government has determined that an eligible crisis or emergency has occurred and has furnished to the World Bank a request to include said activities in the Contingency Emergency Response Component (CERC) for emergency response; (b) the Government has prepared and disclosed all safeguards instruments required for said activities; and (c) the borrower has adopted the CERC Operations Manual (OM) in form, substance, and manner acceptable to the World Bank. The specific OM for this component will be prepared during the first implementation year, detailing financial management (FM), procurement, environmental and social safeguards, and any other necessary implementation arrangements. Components 1, 2, and 3 will focus on pre-crisis disaster risk mitigation and climate resilience enhancement measures. Component 4 will help strengthen the Government’s capacity to respond effectively to an eligible crisis or emergency.

B. Project Cost and Financing

Project Components Project

cost IDA Financing

Trust Funds

Counterpart Funding

Component 1: Development of Productive Infrastructure and Competencies for Agriculture and Rural Entrepreneurship

10 10 0 0

Component 2: Improvement and Maintenance of Public Infrastructure

7.5 7.5 0 0

Component 3: Improvement of the Quality of Agriculture Public Services and Project Management

7.5 7.5 0 0

27 AGETIP-CAF will be responsible for all fiduciary tasks including contracting consultant services, workshops, training and procuring goods.


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Component 4 : Contingency Emergency Response 0 0 0 0

Total Costs 25 25 0 0

Total Project Costs

Front End Fees

Total Financing Required 25 25

C. Lessons Learned and Reflected in the Project Design 49. The project will build upon experiences of agriculture interventions in CAR and other FCV28 countries such as the DRC, South Sudan, and Afghanistan. Lessons are presented below. 50. CAR-Emergency Food Crisis Response and Agriculture Re-Launch Project (P149512) - US$20 million. The project activities were executed between April 2014 and March 2016 as an emergency operation and implemented through WFP and FAO. It was concluded with an unsatisfactory outcome, and both World Bank and Borrower performance were rated as moderately unsatisfactory. The Implementation Completion Report (ICR) concluded that outsourcing project implementation to well-established international institutions is not necessarily an effective strategy in fragile states, unless they have proven country-level institutional capacity and functioning procedures on the ground. While WFP’s expertise in school feeding program and food distribution produced appreciable results under the livelihood assistance component, FAO’s implementation performance was weak and did not materialize in concrete results on the ground under the Component B that aimed at restoring food production capacity for the most affected people in the food insecure areas. The ARADSP Project has taken this lesson into consideration and will work through established NGOs and UN agencies (e.g. United Nations Office for Project Services (UNOPS), WFP) with proven capacity and staffing on the ground to deliver services while at the same time reinforcing the planning, supervision and monitoring capacity of the MADR where the coordination unit will be located. 51. CAR-Livestock Development and Rangeland Management Project (P000474) - US$16.6 million. The project activities were executed between April 1995 and June 1999 to: (a) improve the productivity of the livestock sector and further its integration into the country’s broader economy; (b) improve the standards of living of the herder population through increased diversification of their sources of income; (c) strengthen the livestock sector's professional organizations through democratization of their operations and decentralization of the decision-making process; and (d) promote adequate and sustainable management of natural resources. The project closed with an unsatisfactory outcome, and the main factors in the disappointing implementation were: (a) political interference; (b) internal unrest and insecurity in the country; and (c) inadequate performance by implementing agencies. One of the key lessons learned from this is that project activities will have to be geared more directly toward the target group by working closely with grassroots organizations and their members. A more general lesson is the need for donors to act quickly, forcefully, and in a concerted manner in cases were political interference and financial mismanagement threaten successful project implementation. The ARADSP project has integrated these lessons by dedicating significant resources to work directly with farmers’

28 FCV-Fragile, conflict and violence countries


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organizations through a CDD approach and NGOs with proven track record and capacities. To better manage fiduciary risk, FM and procurement will be entrusted to AGETIP-CAF. 52. DRC-Agriculture Rehabilitation and Recovery Support Project (ARRSP/PARRSA-P092724) - US$120 million. Design elements that are relevant for the ARADSP include contracting NGOs to organize communities into producer groups, matching grants for micro-projects and contracting the private sector in seed multiplication. Additionally, the partnership with the UNOPS in managing roads rehabilitation resulted in: (i) technical training for road technicians; (ii) community engagement through high-intensity labor public works for road rehabilitation and maintenance; (iii) training and certification of local enterprises to undertake road works and the development of a rural roads maintenance strategy. 53. South Sudan CDD (United States Agency for International Development (USAID) funded) – US$13 million. The Participatory Action for Community Enhancement (PACE) approach used by USAID promoted resilience of selected communities in South Sudan. The PACE approach involves four distinct phases: (i) community engagement and facilitation; (ii) community stakeholder analysis; (iii) community project cycle management; and (iv) community-driven development planning. The project’s proposed CDD approach draws from the experiences of the PACE project. 54. Afghanistan Emergency National Solidarity Project (AENSP) II (P102288) US$120 million. The project laid the foundation for access to social and productive infrastructure by strengthening governance and management of sub-projects by communities. ARADSP will incorporate the AENSP’s implementation framework as it was also implemented through the MARD. Village consultation, subproject selection process and community management framework of subprojects will be promoted.

IV. IMPLEMENTATION ARRANGEMENTS

A. Institutional and Implementation Arrangements 55. The agriculture recovery agenda requires an integrated response to address food and nutrition security, rebuild seed production capacity and revive sustainable crop and animal production. Adaptive and agile agricultural extension, crop and animal disease surveillance systems are needed to improve efficiency and effectiveness. 56. The project has four key implementing entities: (i) a NPSC; (ii) a NTPCU at the MARD to oversee the technical management, coordination, monitoring and evaluation of the project activities; (iii) a fiduciary management unit; (iv) NGOs located within the project zones, and (v) UN agencies (e.g. UNOPs). The NPSC has a multi-sectoral membership, chaired by the Cabinet Director in the MARD. Fiduciary management (FM and procurement) will be entrusted to AGETIP-CAF29 which will also provide environmental and social safeguards support to the NTPCU. The implementing arrangements are presented in Figure 2.1. of Annex 2.

29 AGETIP-CAF was created in 1994 with the support of the CAR government and the WB and is an active member of the African Association of AGETIPs (AFRICATIP).


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57. The project has prepared three draft manuals: (i) a PIM which describes detailed arrangements, procedures and mechanisms for institutional coordination, supervision, control, M&E, reporting and communication, environmental and social safeguards matters, and other administrative, financial, technical and organizational arrangements and procedures as shall be required for purposes of implementing the project; (ii) an Administrative and Financial Management Manual describing the rules, procedures and guidelines for the administrative, financial, accounting and budgetary aspects of the project, including procurement, FM, and disbursement; and (iii) the Matching Grants Manual describing the selection procedures and eligibility criteria governing Matching Grants, including a template for the Matching Grant Agreement. The client will need to adopt these manuals in form and substance acceptable to the World Bank prior to effectiveness. Departmental level implementation 58. The project will be implemented through selected NGOs and/or United Nations (UN) agencies in close collaboration with existing technical structures of the Ministries in charge of Agriculture and Livestock (ACDA, ANDE, etc.). A technical coordination committee comprised of representatives of technical services (departmental administration offices, MARD, ANDE, ACDA, Public works and NGOs) will be established to validate proposals and business plans produced by community groups. Community level 59. At the community level, management committees will be formed to manage subprojects comprised of elected members of the community group. Fiduciary management of sub-grants will be done by NGOs. The management committees will manage service delivery once infrastructure works are completed, under the technical oversight of the NGOs. A key focus area of the implementing NGOs’ community mobilization activities will be the Mainstreaming of SGBV messaging and mitigation activities, including assessments, awareness, safety mapping and training. Project Implementation and Phasing 60. Conflict assessments will determine where and when the project will be implemented. Assessments reveal that conflict is driven by a combination of factors30. The project will start in the Ouham-Ouham Pende corridor and in Bangui that are stable. This will be followed by the Bamingui, Bangoran-Vakaga corridor which is stable but, under the authority of rebel groups. The Ouaka corridor, Bambari has until very recently been in conflict, but with the February 2019 peace agreement, an improvement of the security situation is expected. A SGBV risk assessment will be carried out before project intervention to avoid doing harm. The study will engage with community members to understand their perceptions of risks of SGBV associated with specific tasks, functions and activities related to project implementation. The sequence of implementing project components is described in Annex 1.

30 (i) ethnic tension between Nilotic and Bantu groups; (ii) religious tensions between Muslim and Christians; and (iii) control of natural economic resources. Armed groups wage war to control diamond, gold, gemstone mines and extort illegal taxes.


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B. Results Monitoring and Evaluation Arrangements

61. The NTPCU will assume overall responsibility of the project M&E and prepare reports. A Management Information System (MIS) will be established at the NTPCU and operated by an M&E specialist who will be supported by a Global Information Systems (GIS) expert and a data analyst. A baseline survey will be done. Results for key performance indicators will be disaggregated by gender wherever possible. 62. The M&E system will use a geo-enabled MIS, supervision missions, and beneficiary assessments. Baseline information will be collected as investment proposals and agribusiness plans are presented for funding. The MIS will track project data on: (a) producer groups; (b) community subprojects progress; (c) details on business plans; (d) FM, and (e) progress reports. Third-party monitoring will be contracted to supervise the project within the first year of project implementation. 63. One objective of the project is to strengthen the statistics management and analytic capacity of the MARR’s Department of Studies and Planning. The unit will produce and disseminate official agricultural statistics that will monitor production data, soil quality, and climate, and track public expenditure31. 64. Theory of change. The project seeks to address the productivity constraints faced by small-scale farmers, as well as enhance Agri-MSME development in the project areas. Each project component, while having distinct and separate functions, will have synergistic linkages with the other components. The components will aim to address the two principal results areas as indicated in the PDO (Agricultural Productivity and strengthening MSME capacity in the project areas). The project’s success is predicated on interventions across several thematic areas, combining productive investments in asset building and institutional strengthening at various levels for the private (small scale farmers and MSMEs) and public actors (extension, certification, and policies) in the sector. The project will tackle critical issues constraining progress in the targeted geographic area and communities, as follows: (i) Component 1: Provision of productive assets/infrastructure through CDD and strengthening producers’ capacities in managing these assets more efficiently, and stimulate commercialization through MSME development; (ii) Component 2: Alleviate connectivity bottlenecks through rural roads investments to link farmers to markets; and (iii) Component 3: Strengthen public sector capacity to better deliver agriculture services (extension, certification) and initiate policy reforms to create an enabling environment for agriculture productivity growth and affiliated MSME development. Component 1 will mobilize community groups to develop proposals for subprojects to be financed by matching grants. Subprojects will aim to improve access to agriculture inputs, storage infrastructure and irrigated land. Ultimately, this will improve agriculture productivity and increase availability of food. Matching grants will assist Agri-MSMEs to gain access to finance to develop commercial agriculture. Rehabilitated roads will improve mobility, lower transaction costs and improve farmer access to markets. Capacity building activities financed under Component 3 will improve access of producer groups to agriculture and livestock support services. Access to relevant extension services will improve farmer adoption of CSA technologies and risk management strategies. A schematic depiction of the project’s theory of change is provided in Figure 1.

31 Will feed into the National Agriculture Investment Plans under Comprehensive Africa Agriculture Development Program (CAADP).


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Figure 1: Theory of change

C. Role of Partners 65. The EU will collaborate with ARADSP through the EU funded "Linking Relief Rehabilitation and Development (LRRD)" project. International NGOs will implement activities. MINUSCA safeguards communities against acts of violence. The project will work with agribusinesses engaged in commercial agriculture (horticulture, poultry, aquaculture, cotton and livestock). The private financial institutions (Banks and micro finance institutions-MFIs), such as Ecobank and Mutuelle de Credit, are interested in partnering with the Business Accelerator under Sub-component 1.2. MARD will spearhead and lead the agriculture policy and regulation reform process.

V. PROJECT APPRAISAL SUMMARY

A. Economic and Financial Analysis

66. The economic and financial analysis (EFA) assesses the financial and economic viability of proposed project investments, and demonstrates the project’s development impact, rationale for public sector financing and the World Bank’s value added. The quantitative analysis shows that participation in the project is financially viable for target beneficiaries. The project is economically viable, with an economic internal rate of return (IRR) of 21 percent; the results are robust to changes in investment cost and adoption rates but sensitive with respect to changes in crop yields. 67. Method. An economic analysis was carried out to evaluate the project’s benefits and costs to the national economy over a period of 20 years, with a discount rate of 6 percent. The economic analysis aggregates the


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incremental benefits of the: (i) selected crop and livestock enterprise models (as presented in the financial analysis) in economic terms: (ii) improved rural road infrastructure, and (iii) potential reduction in greenhouse gas


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(GHG) emissions and increases in carbon sequestration to be estimated using the Ex-Ante Carbon Balance Tool (EX-ACT) (compare Annex 6). The economic analysis factors in the project’s investment and recurrent costs. 68. Results. The analysis demonstrates that the project is economically viable and robust against changes in key parameters. It can achieve an economic net present value (NPV) of US$23.3 million without a shadow price of carbon; and economic IRR of 21 percent. When low and high shadow prices are applied to carbon, the economic NPV increases to US$25.4 million and US$27.5 million respectively, with IRRs of 22.5 percent and 23.9 percent. The sensitivity analysis shows that returns remain attractive to up to 30 percent increase in investment cost and 30 percent reduction in adoption rates. Benefits would be adversely affected by a steep decline in crop yields; the NPV turns negative and IRR falls below the discount rate of 6 percent, if public good benefits are not considered. 69. For the financial analysis, indicative enterprise models were developed for six key commodities (cotton, maize, groundnut, cassava, beans, goats) to compare the “with project” to the “without project” scenario and estimate the expected IRR and NPV of the investment on field level. The financial analysis shows that households who participate in the project and adopt improved agricultural crop management practices can achieve a positive financial NPV ranging from US$312 (maize) to US$1,906 (beans), as well as IRRs ranging from 36 percent (cassava) to 98 percent (maize). Returns are projected to be particularly favorable for investments in small ruminant production. Goat-rearing communities can expect to achieve an NPV of US$2,123 and an IRR of 27 percent. To approximate expected financial benefits for agri-entrepreneurs, a cheese processing enterprise was evaluated, resulting in a projected NPV of US$6,570 and an expected IRR of 20 percent. 70. Development impact. The project’s development benefits are expected to stem from activities carried out under the three project components: Component 1 Development of Productive Infrastructure and Competencies for Agriculture and Rural Entrepreneurship; Component 2 Improvement and Maintenance of Public Infrastructure; and Component 3 Improvement of the Quality of Agriculture Public Services and project Management. Jointly, project-supported activities are expected to generate five important benefit streams: (i) increased productivity and increased crop and livestock production; (ii) increases in the farmer sales revenues for agricultural commodities; (iii) increased employment opportunities and increased opportunities for income-diversification to non-agricultural activities; (iv) stronger government capacity; (v) environmental public goods in the form of greenhouse gas mitigation and enhanced carbon sequestration. These benefits are expected to result in various development impacts: increased household income from agricultural activity; more diversified household income and increased household resilience; increased government revenue; climate change mitigation leading to reductions in expected damage and losses from climate change across sectors and countries. 71. Rationale for public sector provision. Public sector financing is justified given the importance of agricultural production to the country’s overall growth and employment, foreign exchange revenues, poverty reduction and the provision of an environmental public good. A share of the additional household farm revenues will be used to improve the food security status of these households, another share will generate monetary revenues for the Government through taxes to meet their minimal recurrent cash needs and investment requirements. To date, farmers and other actors in agricultural value chains have insufficient access to finance to increase their production. High transport and transactions costs, combined with limited information, have prevented private investment in agriculture. Public sector involvement to support rural infrastructure is thus crucial.


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72. Value added of World Bank’s support. The World Bank’s value added is high given the extensive knowledge and expertise generated under other agriculture development projects across the Central African region to date. The proposed project builds on previous implementation experience, local World Bank staff expertise, ongoing government dialogue, and global best practices. Furthermore, the multisector challenge for addressing agriculture development opportunities in CAR makes the World Bank uniquely placed to support the Government through a multi-GP team, which includes Agriculture, Trade and Competitiveness, Transport, and Environment.

B. Technical

73. The project is designed to revive agriculture production through CDD and a matching grant mechanism, in addition to the provision of productive infrastructure and improvements in the delivery of agriculture services. This will ease farmers’ access to productive assets, improve their management capacity, whilst rebuilding social cohesion in communities. The business accelerator platform will provide start-ups with matching grants and access to TA. Rural roads and agri-logistics infrastructure will be rehabilitated, and TA will be provided to rebuild agriculture systems and pest surveillance systems under Components 2 and 3 respectively. 74. Under Component 1, offering matching grants to distinct categories of Agri-MSMEs (existing businesses, start-ups, MSME’s off-takers of agriculture produce on local markets) seems feasible technically, drawing from existing experience from other on-going donor funded activities. The provision of quality TA by contracted International Non-Governmental Organizations (INGOs) with a strong track record and UN agencies (like WFP, FAO) will be essential. 75. Activities under Component 2 are based primarily on collaboration with the RCP. Identification of agri-logistic services sites are driven by market demand assessments. Proposed management and operationalization models seem adequate to ensure sustainability of investments by envisaging service fees for users. Capacity building and reinforcement of country systems is at the center of activities proposed under Component 3. The interventions are designed to ensure the revival of public agriculture services and to provide geo-enabled ICT based tools as part of the package of services. 76. The project’s investments are expected to be sustainable as the project intends to elicit production and marketable surpluses, increase revenue, and institutionalize a more effective extension system for continued advisory support to the beneficiary groups beyond the lifespan of the project. Maintenance strategies will be established at the community level as well as through partnership arrangements, e.g. for the roads. Mapping of existing road maintenance mechanisms will inform the development of a rural roads maintenance strategy that will be partially resourced through the National Road Fund.

C. Financial Management

77. The country fiduciary risk is high and has been impacted by the delay in the implementation of critical Public Financial Management (PFM) reforms agreed in 2012. FM and procurement weaknesses and capacity constraints persist in the country including at the MARD.


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78. It was agreed that a fiduciary agent (FA) be recruited to assume fiduciary responsibilities for the project on behalf of MARD. AGETIP-CAF was selected as it has significant experience with the World Bank FM requirements and procedures. AGETIP CAF in its role of sub-implementing unit (Maitrise d’ouvrage délégué in French) managed the Emergency Urban Infrastructure Rehabilitation and Maintenance Project (P104595) and the LONDO project (P152512). Both projects’ ratings for fiduciary management by AGETIP-CAF were satisfactory as these projects’ implementation is found to be in compliance with the relevant Bank fiduciary policy and procedural requirements. 79. The residual FM risk has been rated substantial. Risk of irregularities and corruption during execution of project activities is substantial given the country context. Corruption and poor service delivery are recognized as key challenges in CAR’s public sector. The following FM arrangements and actions are proposed: (i) elaborate a PIM before project effectiveness; (ii) recruit a Senior Accountant to support AGETIP FM staff; (iii) customize the accounting software to record project transactions in a computerized accounting system (HIBTP); (iv) recruit an internal auditor to ensure post review of World Bank projects managed by AGETIP CAF (internal auditor will cover all World Bank financed projects implemented by AGETIP CAF as FA). The project will also recruit an external auditor to audit the project’s financial statements every six months.

Table 1: Fiduciary Risk Mitigation Measures

Risk Factor Mitigation Measure

Payment and Record Keeping at Community sub-project level

The INGOs recruited to support implementation will assume overall fiduciary responsibility. The management committee of the subprojects will receive funds from the NGOs and make payments for activities that are planned for implementation. Books of accounts and all other records are responsibly maintained by the sub-project management committee. Management and maintenance of investments made remains with the sub-project management committee.

Inefficiencies and delays in procurement Regular monitoring of the procurement plan and disbursement reports

Fraud and corruption risks (including collusion and outside interference) in contracting processes

Regular reviews, internal audit, external audit. Disclosure of procurement plan and contracts awarded.

Weak Compliant and Redress System Official Government Disclosure of the complaint redress procedures and quarterly reporting of all complaints received, and actions taken.


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D . Procurement

80. Given the weak fiduciary capacity within MARD, an assessment of AGETIP-CAF was done to evaluate the adequacy of its fiduciary capacity for its role as the project’s FA. AGETIP-CAF, a national organization, gained experience in implementing projects financed by multilaterals donors including the World Bank, AFD, AfDB etc., both as Delegated Management Responsibility (Chef de Maitrise d’Ouvrage Délégué, CMOD) and FA. For the proposed project, AGETIP-CAF will be contracted on a sole source basis, to undertake the project’s fiduciary responsibilities (FM and procurement) on behalf of the MARD. 81. AGETIP-CAF will provide the CAR Government, the World Bank and MARD with the assurance that: (i) procurement will be executed in a responsible, accountable and transparent manner to avoid actual and perceived procurement-related corruption; (ii) TA will be provided to MARD for contract management and supervision during the project; (iv) a capacity building program for the MARD fiduciary capacity will be developed; and (iv) IDA funds are used for their intended purpose. 82. AGETIP-CAF has a dedicated procurement unit staffed by at least three Senior Procurement Specialists with various levels of qualification and competence assuring fiduciary quality of the organization. The AGETIP-CAF will require short term technical specialists to support the NTPCU’s technical unit to draft technical specifications for specialized studies. The PIM will include adequate provisions that meet the World Bank’s requirements for technical staff. In addition, the AGETIP-CAF unit’s procurement staff require extensive training in World Bank policies, procedures and tools. Equipment will be purchased to support procurement according to World Bank guidelines. Overall, the public procurement system in CAR remains weak, despite legal and institutional reforms and resource constraints have delayed the adoption of improved contracting practices in most Government agencies. Consequently, the overall project risk for procurement is “High”. Project procurement will follow the “World Bank Procurement Regulations for IPF Borrowers”, dated July 2016, revised November 2017 and August 2018.

E. Social (including Safeguards)

83. Overall, the project is expected to have positive social impacts, although some activities may generate adverse social impacts. The project will be implemented in Ouham, Ouham Pende, Bamingui-Bangoran Vakaga, Ouaka and Bangui, where there are Indigenous Peoples (IPs). Additionally, some proposed activities under Component 1 and Component 2 may induce involuntary resettlement activities or land acquisition. Specifically, Sub-component 2.1 (Rehabilitation of Public Infrastructure) may induce land acquisition and involuntary loss of assets. Both impacts trigger OP 4.12 (Involuntary Resettlement). Because the proposed project will be implemented in areas inhabited by indigenous people, OP 4.10 (Indigenous Peoples) is triggered. Given these considerations and given that the precise project locations have yet to be specified and only the larger project implementation area is known, two social safeguards instruments have been prepared: (a) a Resettlement Policy Framework (RPF) and (b) an Indigenous Peoples Planning Framework (IPPF). The RPF indicates that individuals that may be affected by involuntary resettlement are not known at this stage as the number, nature, and exact location of subprojects are not yet defined. The IPPF indicates that indigenous people live in the project area, such as around Bangui City. The RPF and IPPF have been prepared and published in the country (November 12, 2018) as well as on the World Bank's external website (December 11, 2018). In addition, prior to the start of activities that induce involuntary resettlement, Resettlement Action Plans (RAPs) will be prepared, as needed. An additional negative impact to be considered is GBV and HIV/AIDS transmission, caused by the influx of extension agents,


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road contractors and other professionals involved in the implementation of the project in rural and peri-urban areas. The preparation and implementation of plans for the prevention of GBV and HIV/AIDS will be part of the contractual obligations of the various contracts concluded under the proposed project. Furthermore, the GBV and Child Abuse/Exploitation (CAE) aspects will be considered in all environmental and social safeguard documents that will be developed as needed and in line with the provisions of the disclosed safeguards framework documents. Clauses relating thereto will be included in the tender documents and the contracts of the Service Providers. Regarding the management of the SGBV aspect, the project will recruit a specialist on the subject to sensitize workers and neighboring communities within the first year of project implementation.

F. Environment (including Safeguards) 84. Overall, project activities are not expected to have irreversible environmental impacts. Through the development of the agricultural value chains, the project will support small farmers and medium sized agribusiness owners. The project is anticipated to be associated with major environmental benefits as it aims to promote climate-smart agriculture and measures to conserve landscapes—of both adaptation and mitigation relevance—such as agro-forestry plantations. By inducing improved soil and water conservation, increased tree/shrub/grass cover, and reduced deforestation and soil degradation, the project should have a significant, positive environmental impact. Therefore, the project is proposed as a Category B project due to potential environmental impacts of expanding agricultural production in an environmentally sensitive area and due to social issues involving potential resettlement and the presence of Indigenous People in the project areas. Impacts are expected to be site specific and manageable. 85. The following Environment Safeguards Policies have been triggered by this project: OP/BP 4.01 (Environment Evaluation); OP/BP 4.04 (Natural Habitats); OP/BP 4. 09 (Pest Management); OP/BP 4.11 (Physical Cultural Resources); and OP/BP 4.36 (Forests). These policies have been triggered to manage potential negative impacts associated with the execution of activities under Component 1 and Component 2. To ensure conformity with the environmental safeguards policies, the country has elaborated both environmental instruments ESMF and IPMP, which were disclosed in-country on November 12, 2018 and on the World Bank’s website (InfoShop) on December 11, 2018. 86. To improve safeguards implementation in the new proposed project, the project will consider lessons

learned on safeguards performance in the other sectors under other World Bank-funded projects in the CAR and

in the region. Capacity of the client to manage safeguards issues is a challenge. Therefore, the project will recruit

an environmental and a social safeguards specialist during the first months of project implementation to oversee

preparation and adequate implementation of the safeguards instruments throughout the project life. The

safeguards specialists will benefit from capacity building by the World Bank experts (on safeguards, GBV issues,

and grievance redress mechanism (GRM)), as well as lessons learned from other World Bank financed projects in

the CAR and elsewhere. A project-level, GRM will be prepared. The GRM procedures will be disseminated in

affected communities to create awareness and enable project-affected people to file complaints. The project’s

GRM will be characterized by: (i) multiple channels to receive complaints and the existence of a reporting system;

(ii) basic standards on which grievances are treated and problems raised in grievances resolved; (iii) deadlines

and clear procedures of treatment of grievances; (iv) existence of monitoring and evaluation mechanism of the

process of grievances management; (v) existence of response system matching with the deadline that can inform


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the plaintiff of each action undertaking following the grievances. A GRM manual will be developed during the first

six months of project implementation.

Climate Change and GHG Acounting 87. The CAR32 is home to a significant part of the Congo Basin rainforest, where illegal logging and exploitation has taken place due to poor infrastructure and conflict. The temperature is expected to rise by 1.5 to 2.7 degrees and the consequence of this will be frequent and extended periods of heavy rains raising the risks of flooding, extreme weather conditions and seasonal variations. 95 percent of the small holder farmers in Central Africa depend on rain-fed agriculture. Animal and plant pests and diseases, floods and droughts are having a direct impact on productivity, with food losses resulting from high humidity and incidence of pests and diseases. 88. To mitigate some of the weather-related risks to the sector, the project will promote the adoption of CSA practices and technologies through the matching grant scheme. The focus will be on sustainable intensification to increase yields and productivity, and on improving resilience of farmers and farming practices. Investments will be made in animal and plant health systems, by improving the agriculture alert and emergency response systems to reduce farmer’s exposure to enable them to better manage climate risks. 89. Adoption of CSA practices such as conservation agriculture, improved livestock husbandry, and agroforestry will also bring mitigation co-benefits through reduced GHG emissions and improved soil carbon sequestration, as demonstrated by the GHG accounting analysis in Annex 5.

G. Citizen Engagement

90. During project preparation, consultations were conducted with farmer groups, private agribusiness firms, government technicians and local authorities. Consultations covered technical, social and environmental aspects. Consultations were also conducted with technical partners and donors33 to harmonize intervention approaches, activities, targeting methods, etc.

32 The present climate of CAR is tropical, with a humid equatorial climate in the south and a Sahelo-Sudanese climate in the north. The country experiences hot, dry winters and mild to hot, wet summers. 33 EU, IFAD, USAID, AFD, AfDB, Banque de Développement des États de l'Afrique Centrale (Development Bank of Central African Republic, BDEAC), FAO, WFP, UNOPS, Office for the Coordination of Humanitarian Affairs (OCHA), International and local NGOs.


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91. The project design integrates citizen engagement (CE) mechanisms in its approach to CDD. The CDD approach as a CE mechanism for social inclusion, engages the community throughout the operational cycle and seeks to strengthen country systems. 92. In addition, the project’s results framework includes a CE indicator (beneficiary satisfaction rate). The project will use citizen satisfaction surveys to document beneficiary satisfaction with the project’s service delivery. Infrastructure rehabilitation activities will use community managed feed-back and complaints registers, which will be monitored monthly. The Agri-SME innovation platform will use ICT solutions to receive feed-back. Finally, a grievance redress system will ensure that beneficiary feed-back and complaints are received, adequately addressed and monitored systematically through phone or SMS. The feedback loop will be closed by establishing a two-way interaction providing a tangible response to feedback received, which will be documented, responded to and integrated into the project’s monitoring and reporting system.

G. World Bank Grievance Redress

93. Communities and individuals who believe that they are adversely affected by a World Bank (WB) supported project may submit complaints to existing project-level grievance redress mechanisms or the WB’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed to address project-related concerns. Project affected communities and individuals may submit their complaints to the WB’s independent Inspection Panel which determines whether harm occurred, or could occur, because of WB non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the World Bank's attention, and Bank Management has been given an opportunity to respond. For information on how to submit complaints to the World Bank’s corporate Grievance Redress Service (GRS), please visit http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service. For information on how to submit complaints to the World Bank Inspection Panel, please visit: www.inspectionpanel.org.

VI. KEY RISKS

A. Overall Risk Rating and Explanation of Key Risks

94. Political and governance risks are rated high due to elevated levels of FCV in the selected project sites. Conflict poses significant implementation and supervision risks for the project. Project staff, implementing partners, beneficiaries and assets created by the project are vulnerable and exposed to risk. Mitigation measures include: (i) start in zones free of conflict; (ii) partner with MINUSCA (protection); (iii) engaging implementation partners (International and local NGOs, UN Organizations); and (iv) risk screening for proposed project activities. 95. Macroeconomic risks are rated as substantial which can be exacerbated by external shocks and climate-induced natural disasters. The CAR is vulnerable to price shocks, and climate -related disasters, as demonstrated by the frequent floods. The macroeconomic instability is compounded by pressures from weak fiscal management, declining growth rate and deteriorating poverty outcomes. The impact of crop and animal losses due to disease and pest outbreaks linked to rising temperatures has not been quantified. Instability and conflict will also impact on the achievement of the PDO. Mitigating factors for macro-economic risk is the Government’s recent track record in macroeconomic management, which has been strong in response to exogenous shocks, as well as the ongoing IMF program and continued dialogue on macroeconomic stability with the World Bank and the IMF. To

http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service

http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service

http://www.inspectionpanel.org/


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mitigate against other external shocks (e.g. climate related), the project will introduce climate smart agriculture practices and has included a contingency emergency response component (CERC) to allow for an immediate response to an eligible crisis or emergency as required. 96. Risks associated with technical design of the project is rated substantial. The weak capacity of the Ministry, the country context, and the involvement of multiple actors at various levels justify the Substantial rating. This will be mitigated by the CDD approach and the matching grant mechanism as main financing instrument in Component 1 facilitated by international NGOs which demonstrated operational strength, track record and experience in such difficult context and with grievance redress systems. In addition, Component 2 will be subcontracted to UNOPS which has the required skills and experience to act as Delegated Management Agency on behalf of MARD. 97. Institutional capacity for implementation and sustainability is rated substantial because despite its appeal, the CDD approach is prone to several risks and challenges. Risks include: (i) difficulties of access to disperse and remote project sites; (ii) insecurity and violence; (ii) elite capture; (iii) fiduciary. The CDD model under Component 1 foresees a wide range of sub-projects and volume of transactions managed by NGOs. To mitigate against risks, an accountability framework has been developed and will be further refined during the first year of project implementation, in addition to building management capacity of community groups. 98. The project fiduciary risk is rated high due to the political and security situation of the country, weak legal framework, and past project experience with operational delay and poor contract management, in addition to the nature of the activities proposed and the requirement for expedited implementation and delivery. The key proposed mitigation measure includes the use of a well-established and functioning FA (AGITEP-CAF), which will ensure fiduciary oversight and transparency and will take on the project’s fiduciary responsibilities. AGETIP-CAF has a strong track record and experience of working with the World Bank and applying all applicable World Bank fiduciary‐related policies and procedures. 99. Stakeholder risk is substantial due to the fact that multiple actors interface in agriculture and rural development in CAR. Diverging approaches to rural community development, consultations and engagement may reduce the effectiveness of projects financed by multiple donors unless they are well coordinated. The project will therefore proactively engage in coordination and alignment between projects in the sector and seek operational synergies wherever possible. Therefore, during project preparation, the Government and the World Bank held consultations with key stakeholders, including rural communities, producer groups, agri-entrepreneurs, service providers, NGOs, other donors, etc., who unequivocally support the project. At the implementation stage, continuous consultations with targeted stakeholders will be needed to ensure a thorough understanding of project activities as well as securing broad participation. Support to rural communities on development planning will promote an inclusive CDD process, fully taking into account gender considerations. Furthermore, coordination and alignment with key development partners (including EU, Fond International de Développement Agricole (International Fund for Agriculture Development, IFAD), African Development Bank (AfDB), and French Development Agency (Agence Française de Développement , AFD)) will be crucial to ensure that synergies are pursued in a deliberate manner throughout the lifespan of the project.

.


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VII. RESULTS FRAMEWORK AND MONITORING

Results Framework COUNTRY: Central African Republic

CAR-Agriculture Recovery and Agribusiness Development Support Project (ARADSP)

Project Development Objectives(s)

Increase agriculture productivity of small scale farmers, strengthen capacity of micro, small and medium agribusiness enterprises in the project area, and provide immediate and effective response in the event of an Eligible Crisis or Emergency

Project Development Objective Indicators RESULT_FRAME_TBL_PDO

Indicator Name DLI Baseline Intermediate Targets End Target

1 2 3 4

Increased Agricultural Productivity

Direct project beneficiaries, of which female and youth beneficiaries (Number)

0.00 1,500.00 7,000.00 15,000.00 20,000.00 20,000.00

Women (Number) 0.00 300.00 2,100.00 5,250.00 8,000.00 8,000.00

Youth (18-30 years) (Number)

0.00 75.00 700.00 2,250.00 5,000.00 6,000.00

Yields per hectare of selected indicative crops, changes in yield (tracked by gender) (Percentage)

0.00 0.00 20.00 30.00 50.00 50.00

Male farmers (Percentage) 0.00 0.00 20.00 30.00 50.00 50.00

Female farmers (Percentage)

0.00 0.00 20.00 30.00 50.00 50.00

Reduction in mortality rate of small stock and chickens

0.00 25.00 50.00


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RESULT_FRAME_TBL_PDO


1 2 3 4

(Percentage)

Strengthened Agri-MSME capacity

Increase in sales turnover among MSMEs supported by the Project (Percentage)

0.00 15.00 35.00

Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO


1 2 3 4

Development of Productive Infrastructure and Competencies for Agriculture and Rural Entrepreneurship

Farmers reached with agricultural assets or services (CRI, Number)

0.00 1,500.00 7,000.00 15,000.00 20,000.00 20,000.00

Farmers reached with agricultural assets or services - Female (CRI, Number)

0.00 300.00 2,100.00 5,250.00 8,000.00 8,000.00

Number of producer groups/cooperatives established (Number)

0.00 80.00 160.00 300.00 450.00 600.00

Number of women producer groups (Number) 0.00 25.00 80.00 150.00 225.00 300.00

Community managed productive infrastructure realized (Number)

0.00 0.00 50.00 75.00 100.00 125.00

Number of micro, small, and medium enterprises established (Number)

0.00 0.00 8.00 25.00 35.00 40.00

Women (Number) 0.00 0.00 3.00 9.00 13.00 16.00


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RESULT_FRAME_TBL_IO


1 2 3 4

Youth (18-30 years) (Number) 0.00 0.00 1.00 4.00 9.00 12.00

Productive business linkages established and sustained over one year (Number)

0.00 0.00 1.00 2.00 3.00 4.00

Number of jobs created through Matching Grants (Number)

0.00 50.00 200.00 1,500.00 2,000.00 4,000.00

Improvement and Maintenance of Public Infrastructure

Roads rehablitated (CRI, Kilometers) 0.00 50.00 100.00 150.00 200.00 250.00

Rural roads maintained (Kilometers) 0.00 50.00 125.00 200.00 250.00 300.00

Rural logistics and commercialization infrastructure rehabilitated (markets, storage, sales points, etc.) (Number)

0.00 5.00 10.00 20.00 30.00 40.00

Improvement of the quality of Agriculture Public Services and Project Management

Quantity of improved seeds cerified (Base seed R1, kg) (Number)

0.00 15,000.00 25,000.00 35,000.00 45,000.00 50,000.00

Climate Smart Technology packages disseminated in the project zone (Number)

0.00 0.00 0.00 2.00 4.00 5.00

Beneficiary satisfaction rate with quality of services provided by the project (Percentage)

0.00 60.00 80.00

Contingency Emergency Response

Crisis Information Alert System No No Yes Yes Yes Yes


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RESULT_FRAME_TBL_IO


1 2 3 4

and a crisis response framework approved and put in place (Yes/No)

Monitoring & Evaluation Plan: PDO Indicators

Indicator Name Definition/Description Frequency Datasource Methodology for Data Collection Responsibility for Data Collection

Direct project beneficiaries, of which female and youth beneficiaries

Individuals directly benefitting from at least one project activity / input. Cumulative targets.

Annual

Progress reports

Technical and Economic monitoring, surveys

M&E Officer

Women

Female Individuals directly benefitting from at least one project activity / input. Cumulative targets.

Annual

Progress reports

Technical and Economic monitoring, surveys

M&E Officer

Youth (18-30 years)

Young individuals between the ages of 18 and 30 years directly benefitting from at least one project activity / input. Cumulative targets.

Annual

Progress reports

Surveys

M&E Officer

Yields per hectare of selected indicative crops, changes in yield (tracked by gender)

The indicator measures improvements in crop production per ha through the average increase in units of production (kg, MT) per land area, resulting from improvements in production practices through project interventions.

Annual

Progress reports

Survey

M&E Officer

Male farmers

The indicator measures improvements in crop production per ha through the average increase in units of production (kg, MT) per land area, resulting from improvements in production practices through project interventions for male farmers.

Annual

Progress reports

Survey

M&E Officer


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Female farmers

The indicator measures improvements in crop production per ha through the average increase in units of production (kg, MT) per land area, resulting from improvements in production practices through project interventions for female farmers.

Annual

Progress reports

Survey

M&E Officer

Reduction in mortality rate of small stock and chickens

This indicator is a proxy for the productivity of ruminants (sheep, goat, and chicken). Mortality rate = Number of animals that died over one year/ Number of ruminants present over one year.

Baseline, Mid-term and at the end of the project

Baseline report, Mid term report, and Impact Assessment report

Survey

NTPCU

Increase in sales turnover among MSMEs supported by the Project

This indicator measures the average percentage increase in the value of sales by MSMEs supported by the project. For each MSME, the increase is calculated as the ratio of the incremental value of sales during the reporting year (the total value of sales by supported MSMEs during the reporting year minus the total value of sales in the baseline year) and the value of sales at baseline.

Baseline, Mid-term and Endline

Baseline report, Mid term report, and Impact Assessment report

Survey, technical and Economic monitoring

NTPCU

Monitoring & Evaluation Plan: Intermediate Results Indicators

Indicator Name Definition/Description Frequency Datasource Methodology for Data Collection Responsibility for Data Collection

Farmers reached with agricultural assets or services

This indicator measures the number of farmers who were provided with agricultural assets or services as a result of World Bank project support. "Agriculture" or "Agricultural" includes: crops, livestock, capture

Annual

Progress reports

Surveys, Technical and Economic monitoring

M&E Officer


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fisheries, aquaculture, agroforestry, timber, and non-timber forest products. Assets include property, biological assets, and farm and processing equipment. Biological assets may include animal agriculture breeds (e.g., livestock, fisheries) and genetic material of livestock, crops, trees, and shrubs (including fiber and fuel crops). Services include research, extension, training, education, ICTs, inputs (e.g., fertilizers, pesticides, labor), production-related services (e.g., soil testing, animal health/veterinary services), phyto-sanitary and food safety services, agricultural marketing support services (e.g., price monitoring, export promotion), access to farm and post-harvest machinery and storage facilities, employment, irrigation and drainage, and finance. Farmers are people engaged in agricultural activities or members of an agriculture-related business (disaggregated by men and women) targeted by the project.

Farmers reached with agricultural assets or services - Female

Annual

Progress reports


M&E Officer

Number of producer groups/cooperatives established

This indicator measures the number of producer groups/cooperatives consisting of small agriculture and livestock farmers formally organized around a common purpose to increase

Annual

Progress reports

Surveys

M&E Officer


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their productivity and improve their livelihoods in the project's target areas who were provided with technical assistance by the project (disaggregated by gender).

Number of women producer groups Annual

Progress reports

Surveys

M&E Officer

Community managed productive infrastructure realized

This indicator measures the number of community managed infrastructure sub-projects elaborated with the active participation and input of the targeted communities and financed by the project .

Annual

Progress reports

Surveys, Technical expert inspection

NTPCU

Number of micro, small, and medium enterprises established

Number of micro, small and medium sized businesses established with support from the project that leverage existing market opportunities by coordinating farm outputs with market demands to ensure that final goods conform to consumer/market specifications (product form, presentation, availability, etc.). Disaggregated by gender and youth (18-30 years).

Annual

Progress reports


NTPCU

Women Annual

Progress reports

Survey, Technical and economic monitoring

NTPCU

Youth (18-30 years) Annual from Year 2

Progress reports

Surveys, technical and economic monitoring

NTPCU

Productive business linkages established and sustained over one year

This indicator measures the number of productive linkages established thanks to the project. Established productive linkages involves a commercial arrangement including a buyer, a group of producers, and a well-

Annual

Progress reports


NTPCU


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defined agriculture product (quality, quantity, etc.) .

Number of jobs created through Matching Grants

Number of people engaged in remunerated work as a result of the matching grant scheme supported by the project . Jobs created includes: (i) self-employment; (ii) temporary job; (iii) part-time job; and (iv) permanent jobs.

Annual

Progress reports


NTPCU

Roads rehablitated Annual

Progress reports

Rural Infrastructure Survey

NTPCU

Rural roads maintained

Number of kilometers of roads maintained through vegetation clearing, debris removal, side drains cleaning, or minor surface repairs, and carried out using public works technology that maximizes opportunities for the employment of labor rather than machines.

Annual

Progress reports

Rural Infrastructure survey

NTPCU

Rural logistics and commercialization infrastructure rehabilitated (markets, storage, sales points, etc.)

Number of markets and affiliated agro-logistics infrastructure (storage building, sales points, auction areas) rehabilitated and rendered usable for the targeted beneficiaries

Annual

Progress reports

Rural Infrastructure Survey

NTPCU

Quantity of improved seeds cerified (Base seed R1, kg)

Weight of R1 base seed for agriculture crops certified by the government agency supported by the Project

Annual

Progress reports

Survey and technical monitoring

NTPCU

Climate Smart Technology packages disseminated in the project zone

Climate smart technology packages include agriculture practices and technologies such as no tillage, mulching, crop diversification and crop rotation, integrated soil and water management, improved pasture management, drought- and pest-

Annual

Progress reports

Surveys, technical monitoring

NTPCU


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resistant seeds varieties and breeds, integrated pest and diseases management, efficient micro-irrigation techniques, etc.

Beneficiary satisfaction rate with quality of services provided by the project

This indicator measures the percentage of beneficiaries who expressed satisfaction with the services provided in the project areas based on formal surveys. The sample size should be representative of the total number of beneficiaries.

Mid-term and at the end of the project

Mid-term evaluation report, Impact assessment report

Beneficiary satisfaction survey

NTPCU

Crisis Information Alert System and a crisis response framework approved and put in place

A crisis information alert system and a crisis response framework is an early warning system and response framework that establishes a typology of agriculture risks that can cause sector emergencies in CAR, planned responses, and identifies capacity building activities to enable an effective response to potential emergencies.

Annual

Progress reports

Technical monitoring

NTPCU

ME IO Table SPACE


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ANNEX 1: Implementation Arrangements and Support Plan

COUNTRY: Central African Republic

Agriculture Recovery and Agribusiness Development Support Project

Sector Context and Issues

1. CAR is endowed with abundant land and water resources, but decades of insecurity and structural economic constraints have prevented it from realizing its considerable agriculture potential. The agriculture sector is the core of CAR’s economy accounting for the largest share of GDP and most of employment. About 7 out of 10 households in CAR are headed by farmers. Subsistence agriculture, livestock rearing, and hunting and fishing contributed respectively, 32, 14, and 8 percent to overall GDP in 2016 (SCD, 2019) and agricultural products (i.e. cotton and coffee) accounted for about 12.2 percent of total exports in 2000, and declined to 5.2 percent in 2016 (IMF, 2016). Major cash crops for export include cotton, coffee, and tobacco. Furthermore, 70 percent of total employment comes from agriculture, while 75 percent of total food consumed is produced locally. In the medium and long run, the main sector challenge is to shift from less productive, subsistence farming to more productive commercial farming that will be a source of profitable smallholder agriculture and youth employment without neglecting the promotion of an agribusiness sector. This pathway could contribute to break the cycle of violence.

Figure 1.1: Composition of primary sector GDP

Source: International Monnetay Fund (IMF) 2016.

2. Public institutions have limited capacity to deliver basic services to farmers and herders or otherwise fulfill their core mandates. Complex institutional arrangements, a weak incentive structure, high turnover at the managerial level, and a lack of adequately trained staff have weakened the effectiveness of major sectoral institutions. In addition, the governance framework for agriculture is very weak. The agriculture sector has had a policy vacuum for the last two decades. Before the war, 75 percent of total food consumed in the country was produced locally. Ongoing conflicts continue to affect food security in the North-western, South-eastern, and

0.0

100.0

200.0

300.0

400.0

Subsistence Cash crops Livestock Hunting and fishing Forestry

https://en.wikipedia.org/wiki/Cash_crop

https://en.wikipedia.org/wiki/Export

https://en.wikipedia.org/wiki/Cotton

https://en.wikipedia.org/wiki/Coffee

https://en.wikipedia.org/wiki/Tobacco


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central part of the country34. Per the latest national survey on food and nutrition security (2017), about 2 million35 Central Africans are food insecure, meaning almost one out of every two households (48 percent). The daily energy consumption per capita is estimated at 1,850 Kcal as opposed to an average of 2,400 Kcal in Sub-Saharan African countries (2008). IPC analysis carried out in February 2017, estimated that one million people were severely food insecure with food insecurity affecting more people in rural areas (56 percent) than in urban areas (37percent).

3. There are approximately 1.1 million children suffering from food insecurity and one in every two children is affected by stunting. An estimated 39,000 children under 5 suffer from SAM36. Chronic malnutrition has been steadily increasing for the last 20 years, from 28.5 percent in 1995 to 40.8 percent in 2014. Interrelated factors that have contributed to these trends include: (i) limited access to land due to threat of violence and conflict; (ii) theft of crops by rebel groups at harvest; (iii) below-average levels of crop production due to instability; (iv) low levels of food stocks; and (v) destruction of off-farm income generating activities.

4. Climate Change. The CAR is home to a significant part of the Congo Basin rainforest, where little logging and exploitation has taken place due to poor infrastructure and conflict. CAR’s climate is tropical, with a humid equatorial climate in the south and a Sahelo-Sudanese climate in the north. The country experiences hot, dry winters and mild to hot, wet summers. The temperature is expected to rise by 1.5 to 2.7 degrees and the consequence of this will be frequent and extended periods of heavy rains raising the risks of flooding, extreme weather conditions and seasonal variations. 95 percent of the small holder farmers in Central Africa depend on rain-fed agriculture. Animal and plant pests and diseases, floods and droughts are having a direct impact on productivity, as well as on post-harvest management of grains, with food losses resulting from high humidity and incidence of pests and diseases.

Project area 5. The targeted project intervention zones are: (i) Ouham and Ouham-Pendé regions in the north-western part of the country; (ii) Bamingui Bangoran and Vakaga regions in the north-eastern part; and (iii) Ouaka around Bambari in the central corridor. In addition, Bangui will benefit from targeted interventions. These regions were selected based upon the following considerations: (i) high agriculture production potential; (ii) presence of ongoing rural road rehabilitation works; (iii) potential for creating jobs; (iv) no ongoing conflict; (v) incidence of food insecurity and malnutrition. 6. Additional reasons that justify the choice of the intervention zones include:

(i) Ouaka region (276,710 inhabitants, population density of 5.5/km2). Bambari, has irrigated rice and

peri-urban horticulture production creating employment for youth, a pathway out of conflict.

(ii) The regions of Ouham (369,220 inhabitants) and Ouham Pendé (430,506 inhabitants) bordering

Chad and Cameroon have been subject to uncontrolled lawlessness and, violence since 2005. A total of

34 Ouham Pende, Nana Mambéré, Basse Kotto, Mbomou, Haut Mbomou, and Haute Kotto. 35 Integrated Food Security Phase Classification (IPC), March 2016. 36 Integrated Food Security Phase Classification, ‘République centrafricaine – Actuelle – Analyse de la situation de l’insécurité alimentaire

aiguë’, August 2016, www.ipcinfo.org/ipcinfo-detail-forms/ipcinfo-map-detail/en/c/445331/, accessed 4 January 2017.

http://www.ipcinfo.org/ipcinfo-detail-forms/ipcinfo-map-detail/en/c/445331/


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100,000 ha is under coffee and cotton production. The World Bank-supported Connectivity Project will

rehabilitate roads in the region.

(iii) The regions of Bamingui Bangoran and Vakaga in the north-eastern part of the country bordering

Chad and Sudan and will also be served by the Connectivity Project improving connectivity will reconnect

the zone to national markets and bring stability to the corridor that is under rebel control.

(iv) The commune of Bangui (734,350 inhabitants) serves as an administrative, trade and commercial

center for the country. Agri-entrepreneurs in peri-urban Bangui have potential for creating jobs.

Project Outline

7. The project has four components: (i) Component 1 – Development of Productive Infrastructure and Competencies for Agriculture and Rural Entrepreneurship; (ii) Component 2: Improvement and Maintenance of Public Infrastructure; (iii) Component 3: Improvement of the quality of Agriculture Public Services and Project Management; and (iv) Contingency emergency response. Components 1 and 2 are designed to revive agriculture production and rehabilitate basic infrastructure to restore commercial circuits in the project area, while Component 3 aims to reintroduce agriculture public goods and services essential for agriculture production. Component 4 will provide immediate response to an eligible crisis or emergency. 8. The project approach will be a combination of CDD and direct support to MSMEs based on viable business plans. CDD gives decision making power and resources to community groups. These often work in partnership with support organizations and service providers including the private sector, NGOs, and central government agencies. CDD is a way to provide social and infrastructure services, to organize economic activity, to empower poor and marginalized people, to improve governance, and to enhance security. CDD can fill gaps where markets are missing or imperfect, or where public institutions fail to fulfill their mandates. In addition, agri-MSMEs will be directly supported through TA to elaborate their business plans and financial assistance with the Matching Grant schemes to develop or improve their businesses. In this respect, the CDD project approach at community level will be combined with financial support for entrepreneurship promotion for agribusiness development (Component 1), while providing necessary public infrastructure to improve access to input and output markets and affiliated agri-logistics (Component 2) and the delivery of agriculture public services (Component 3). 9. The CDD approach is of relevance in conflict, post-conflict and fragile situations with internally displaced populations and refugees. The targeted project zones are characterized by weak capacity for service delivery, underdeveloped accountability mechanisms and poor logistics and where social fabric needs reconstruction. Partnerships with international and local NGOs will strengthen community mobilization and development. A phased approach to the implementation of project activities is proposed as depicted in Figure 1.2 below.


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Figure 1.2: Community Driven Development as foundation for agribusiness start-up

10. Dynamic community groups that are established under the CDD approach under Component 1.1 will graduate to receive agribusiness support under Component 1.2 of the project. There are four distinct phases:

- Start-Up Phase I (Sub-component 1.1): (i) communication of project objectives; (ii) GBV community assessment; (iii) identification of community leaders; (iv) establishment of village councils; (v) group mobilization; (vi) establishment of a GRM; (vii) elaboration of micro-projects; (viii) selection of projects based on village community development plans;

- Implementation Phase II: (i) establish GBV information system; (ii) training of groups (integrated messaging on positive social norms for women and girls); (iii) labor intensive public works applying community safety protocols for women and girls; and (iv) training and agriculture extension.

- Consolidation Phase III: (i) group training for management of micro projects; (ii) operationalization of micro projects; (iii) service delivery; and(iv) elaboration of business plans.

- Graduation Phase IV (Sub-component 1.2): (i) business plan competition; (ii) implementation of business plans; (iii) TA; and (iv) registration of agri-enterprises (cooperative, clubs, economic interest groups and social enterprises).

Component 1 – Development of Productive Infrastructure and Competencies for Agriculture and Rural Entrepreneurship (IDA: US$10 million equivalent).

11. This component will rehabilitate and/or build critically needed productive infrastructure through the provision of matching grants for community-driven micro-projects identified through participatory processes. It will support measures designed to increase agricultural productivity and production (for both crops and animal products) in targeted areas. Nutrition and climate sensitive technologies and management practices will be promoted. Agribusiness SMEs will also be promoted through an IPs37. The component is comprised of two sub-components: (i) community managed productive infrastructure; and (ii) development of agriculture and rural entrepreneurship.

37 An innovation platform is a multi-stakeholder forum that facilitates exchange of ideas, joint learning, collaboration and development of innovative solutions to market failures and agribusiness constrains: farmers, traders, food processors, researchers, government officials etc.


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Sub-component 1.1: Community Managed Productive Infrastructure (IDA: US$4 million) 12. This sub-component will promote community managed productive infrastructure to reinforce social cohesion and help small farmers to have better access to productive infrastructure and increase their agro-pastoral and fisheries production. The project will finance community-driven micro-projects selected through participatory planning processes which will be based on priorities needs expressed by communities.

13. Community infrastructure comprises small-scale basic structures, technical facilities and systems built at the community level that ensure basic services to people, and which are critical for the social cohesion and economic stability of a community. They are low-cost micro infrastructures built over time through community-led initiatives according to the needs and aspirations of the community. Typically, public good in character, productive community infrastructure can entail, inter alia, water points, footpaths providing access to the local road system; small-scale irrigation or drainage systems; infrastructure for agro-pastoral production systems; community-based early warning systems and communication devices.

14. In addition, small-scale38 agro-pastoralists will be supported to establish productive infrastructure that would rebuild their resilience such as community owned pasture forage production, vaccination parks and livestock reproduction centers. Communities would be expected to contribute in kind to access the matching grant facility that will finance projects with a maximum value of US$20,000. A total of 200 villages in the target zone will be provided the opportunity to bid competitively to access the matching grants.

38 Small scale agro-pastoralists are typically rural households that practice mixed farming system (crop and animal production) on land is typically 0.25-1.25hectares. Their crop production is usually rain-fed, and they rear small stock.

Box 1.1: Food and Nutrition Security IPC analysis carried out in February 2017, estimated that one million people were severely food insecure with food insecurity affecting more people in rural areas (56 percent) than in urban areas (37 percent). Meeting the needs of venerable members of the communities to increase their access to fresher, more nutritious food supplies requires an increase of the self-reliance of communities in providing for their own food needs. There is need to promote a comprehensive response to local food, farm, and nutrition issues and to build long-term capacity of communities to address food and agricultural problems through multisector planning activities. In respect to nutrition, the project will try to accomplish two key objectives: (i) enhance the availability of and access year-round to adequate food supply at household level; and (ii) improve income and production utilization to address household nutrition challenges. A key challenge the CDD approach is often confronted by the relatively low community demand for nutrition interventions given the relative invisibility of the problem, the limited capacity on nutrition at lower administrative levels, and the lack of skills in addressing nutrition cases within the local health sector. Participatory planning approaches that engage target communities will be used to identify key development challenges in their areas and to determine the activities that could address underlying causes of food and nutrition insecurity. This will be followed by a prioritization of activities and assessment of key preconditions for success. Different community participatory methods will be used, e.g.: Participatory Rural Appraisal (PRA), Objective Oriented Project Planning (OOPP), and participatory causality analysis. To improve the availability of and access year-round to adequate food supply, livestock assets and improved productivity at household level the following activities are envisaged: (i) community micro-credit livestock rotation scheme which enable households to access small stock (chicken, rabbits, sheep and oxen); (ii) access to quality seed, fertilizers, and other inputs; (iii) access to training and matching grants; and (iv)access to agriculture extension& climate services for improved farming practices and increased resilience. Activities to improve incomes and utilization of agriculture production to address household nutrition challenges will be primarily focused on: (i) behavior change sensitization sessions (e.g. purchase of alcohol and dietary habits); (ii) improving women’s participation in community managed micro-projects; and (iii) access to time saving equipment for women.


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15. The project will promote the adoption of CSA practices and technologies through the matching grant scheme. Small holder and producer groups will have access to CSA technologies, good management practices and TA to enable their adoption. Investments will be made in animal and plant health systems, by improving the agriculture alert and emergency response systems to reduce farmers’ exposure thus enabling them to better manage climate risks. These investments will build community resilience to the impacts of climate change (drought/floods) by reducing community dependence on rain-fed agriculture. Design of the infrastructure will consider: (i) climate resilience; (ii) women specific considerations; (iii) cost of maintenance; (iv) economic viability; and (iv) community management model. The infrastructure will be managed by the community groups using proven rural business models like a fee-based39, cooperative model40, cost-sharing model41 or levy-based42. Communities will be consulted and trained on the most viable management model.

16. Under this sub-component, the project will also ensure that women take advantage of the new CSA technologies, access matching grants and agriculture extension services through three key methods: (i) targeted training for female farmers organized in producer groups; (ii) introduce time saving technologies to reduce the efforts and time spent on agriculture related tasks performed by women; and (iii) promotion of positive male role models, mentoring and coaching targeted at female MSMEs.

17. For communities to effectively plan, implement, manage, and monitor a micro-project, the project will build capacity to facilitate establishment of functional Common Interest Groups (CIGs), groups representing Vulnerable and Marginalized people (VMGs), and productive alliances. Specifically, the project will contract local NGOs and/or private advisory service providers to facilitate the mobilization of community institutions, and to assist CIGs/VMGs in micro-project planning, design and implementation. Innovative approaches will be applied to re-build community cohesion, collaboration, social capital and dialogue through the establishment of community-based groups comprised of farmers, livestock keepers, women and youth. 18. Emphasis will be placed on reinforcing the resilience of small-scale farming communities to re-engage in farming activities enabled with access to agricultural inputs such as seeds, fertilizers, and herbicides. An increase in production output will serve to meet immediate food and nutrition security needs and surplus production will

39 Fee-based is based on frequency of use and set price. 40 Community members mobilize funds and commonly own the infrastructure. 41 Infrastructure costs are shared equally amongst users. 42 Community flat tax is charged at community level to cover operational and maintenance costs of the public good.

Box 1.2: Gender warrants specific attention To reduce the gender productivity gap in agriculture in CAR the project will promote adoption of CSA technologies and access to logistic services by women farmers. Project activities will include: (i) promoting women producer groups; (ii) access to matching grants by promoting functional and literacy training; (iii) consultations with women on the design & access of productive community infrastructure; (iv) women access to agriculture extension services and inputs by training women contact farmers; and (v) the promotion of positive male role models (who protect and value the contribution of women). A study of women’s time use analysis will be carried out to determine labor and time use by women to introduce time saving technologies for tasks performed by women (food preparation, fetching water and fuel for cooking). Finally, special incentives will be introduced in selection criteria for matching grants for groups receiving matching grants that include female farmers under Sub-component 1.1 and will be also encouraged under Sub-component 1.2. This will be tracked through gender disaggregated PDO indicators: (i) yield per hectare, selected indicative crops, changes in yield tracked by gender; (ii) number of micro, small and medium enterprises established by gender. In addition, two output gender disaggregated indicators will also monitor progress: (i) number and percentage of women entrepreneurship advisors; and (ii) number of women producer groups.


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be sold in local and national markets. Additional revenues obtained through commercialization will be reinvested in building household assets base, agriculture productivity improvements and value added (purchase of small livestock and bicycles or other assets to diversify sources of income, build household resilience). The project will explore possibilities of forging linkages between the CIGs savings groups to ICT providers for easy access to ICT based agriculture services.

19. For communities prioritizing fisheries related micro-projects, the project will enhance fish production in selected zones through the following activities: (i) training of trainers and farmers on improved and sustainable fish farming systems, fish feeding, water quality control, better management techniques; (ii) training of representatives groups in fish fry production and reproduction techniques; (iii) introduction and multiplication of new Tilapia nilotica and Herbivorous Carpe fry that are mainly affected by genetic erosion; (iii) development of integrated aquaculture in association with pigs; and (iv) sensitization and supervision of all fish farmers for the adoption of the new technology packages. These activities are expected to reach 1500 fish farmers organized in 77 groups located in the prefectures of Bangui (60 groups), Ouham and Ouham Pendé (17 groups). Targeted support will also be provided for: (i) the training of the 10 fishmonger’s groups on hygiene and on improved technologies of fish smoking and packaging; and (ii) the installation and the equipment (fridge materiel and fish smoking oven) of mini-fishmongers through a matching grant system funding, including in the Prefecture of Bamingui Bangoran where fishmongers observe similar constraints. The implementation of all activities will be done through service providers under the oversight of the Department of Fishery and Aquaculture in the Ministry of Forest and Fisheries. Though not included in the results framework, progress on activities related to fisheries development for these select communities will be monitored through the Project’s M&E system. Sub-component 1.2: Development of Agriculture and Rural Entrepreneurship (IDA: US$6 million) 20. This sub-component will support agribusiness start-ups, with emphasis on women and youth-based businesses. Existing businesses and start-ups in commercial agriculture will be promoted through a pilot business start-up accelerator/incubator in Bangui that is comprised of a competitive business grant fund coupled with TA window. Entrepreneurs with innovative business ideas will be invited to submit business plans to access matching grants. Annually, through a competitive process, entrepreneurs with innovative business ideas will access a series of services: (i) TA for business plan development; (ii) entrepreneurship and managerial skills training; (iii) matching grant; and (iv) business mentoring. 21. The competitive grant fund will have four distinct phases. During the initial identification phase, a market scan will be carried out to facilitate the identification of potential agribusiness enterprises and preselect candidates. In phase 2, the preselected candidates will be invited to participate in the business competition. Phase three will involve screening and evaluation of submitted business models/plans. Successful plans will receive TA through the TA window to review their business plans. During Phase four, the successful candidates will access the matching grant for implementation of the business plans, mentoring and monitoring of business performance.


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22. There will be two matching grant windows. The first window will provide matching grants up to a maximum of US$5,000 per grant for organized small-scale farmers, US$10,000 per grant for youth-based enterprises, and US$15,000 per grant for Agri-SMEs. Small scale farmers, youth and women microenterprises will be eligible for a 90 percent grant. An existing enterprise (Agri business SME) which wants to scale up the business by incorporating small farmers through purchase arrangements or market access will be eligible for a 75 percent grant. 23. A second window will serve as Accelerator funding. The accelerator will identify eligible enterprises and incubate them with two cycles annually (identification, coaching and mentoring and financing). The accelerator will be managed by a facilitator (an NGO) in partnership with TA providers

and will be co-financed with other financial institutions such as Ecobank, Sofia-credit, Credit Mutuel and Orange to promote access to financial services. Grant amounts will range between US$30,000-US$100,000 with 15 percent contribution. 24. The project will support collection of data on agriculture enterprises and start-ups through a data platform using ICT tools. A total of 40 entrepreneurs will be supported. A simplified operational manual for administration of these grants has been developed with clear impact criteria. The figure below summarizes the competitive matching grants scheme.

Figure 1.3: Competitive grant scheme

25. Business plans for Agri-SMEs will be selected based on the following criteria: (i) relevance in addressing market failures (product or service); (ii) commercial viability; (iii) job creation potential; (iii) use of ICT and other innovations; (ii) technical feasibility of proposed investments (scale, required technical capacity, and so on); (v)

Box 1.3: JOBS The project will create temporary jobs in the implementation of project activities under sub components 1.1, 1.2, 2.1 and 2.2. Self-employment and part-time jobs will be created by the support provided to Agribusiness start-ups and SME under Sub-component 1.2 and community sub projects under Sub-component 1.1. Access to technical assistance in the form of business development services will increase the number of start-up enterprises and support growth of existing agri-SMEs. Secondly, the project will also invest in facilitating youth access to relevant skills training, entrepreneurship and mentoring improving their employability on the one hand and self-employment on the other. The project will also facilitate market access by producer groups and agribusiness SMEs through the agriculture service logistic centers and selected rural roads for improved connectivity and mobility. An enterprise survey will be implemented in partnership with the MARD and WFP to collect data on enterprises and value chains. This will enable the project to better monitor the creation of jobs.


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contribution to improved nutrition outcomes; and (vi) contribution to improved environment outcomes, such as climate change mitigation or adaptation. The grants will finance enterprise registration, access to TA, training, access to agriculture inputs and equipment. 26. The business accelerator will invite the participation of financial Institutions such as Ecobank, Credit Mutuel and telecom companies like Orange to promote access to financial services. The institutions are keen to exploit opportunities that exist in the in peri-urban high value commercial agriculture namely in the horticulture, poultry, aquaculture value chains opportunities for agri-finance service and products such as e-money and micro-finance.

Component 2: Improvement and Maintenance of Public Infrastructure (IDA: US$7.5 million equivalent) 27. The revival of the agriculture sector will depend in part on the reduction of transaction costs for improved access to markets. The objective of this component is to improve connectivity, mobility and access to local markets and associated agri-logistics services in selected zones. The component is comprised of two sub-components: (i) Sub-component 2.1 Infrastructure Rehabilitation; and (ii) Sub-component 2.2 Infrastructure Maintenance.

Sub-component 2.1 Rehabilitation of Public Infrastructure (IDA: US$7.0 million) 28. This sub-component will focus on ensuring all-season accessibility of selected rural roads by rehabilitation and maintenance through LIPW-HIMO. Two types of infrastructure will be rehabilitated by the project: (i) rural

Box 1.4: Potential Partners in Enterprise Development The NGO KYPS an acronym in Sango, the national language that means “working together” has introduced the Songhai Benin based agripreneurship incubator on the outskirts of Bangui. The incubator trains 25 youth each season equipping them with practical horticulture production and marketing skills for four months and upon graduation provides them with an agribusiness start-up kit (farm tools, vegetable seeds, access to land). KYPS has signed a MOU with the Government and is looking for a partner to reinforce the scope, quality and scale of services rendered by the incubator. EcoFarm is a private agribusiness firm that sells horticulture commodities on a contract basis to MUNISCA in Bangui, provides advisory & technical assistance and contract farming arrangements for small holder horticulture farmers. Ecofarm trains its interns on sustainable livestock, fish and horticulture production that can be commercially viable. Ecofarm provides small holder farmers with a market for banana plantain through an out-grower arrangement. Ecofarm is looking for a partner to scale-up its: (i) banana out- growers; (ii) horticulture contract farming scheme; and(iii) youth internship program. UNEXPALM. An association of small and medium palm oil producers with 25 members with a total of 500 hectares with a potential to expand production and the ambition to upgrade its fruit collection and processing capacity. The Chamber of Agriculture has established groups that are engaged in small scale commercial fish, poultry and horticulture production. The “metayage - land leasing model” groups are organized around a “Promoter” who provides the other group members with access to farm land, water and the market. The members of the group “pay” the Promoter for “services rendered” in kind or in cash. The Chamber is seeking a partner to structure and scale-up these arrangements that form the back-bone of peri-urban agriculture in and around Bangui. In Ouham, the Purchase for Progress (P4P) Program funded by the WFP has been purchasing staple crops from local community groups through a structured system it established in the province in 2016. The groups have gained experience to produce as per purchase contact specifications and there is community and group interest to scale-up the intervention.


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roads for improved connectivity and mobility; and (ii) markets with associated agri-logistics services for improved market access along agriculture trading corridors in the project area.

29. Rural roads will be selected based on criteria that comply with those proposed by the RCP (P160500). The criteria include: (i) Government priorities in the selected project zones; (ii) roads selected for rehabilitation by the RCP; (iii) roads used by private sector for transporting agriculture production and inputs; (iv) roads selected to ensure maximum impact on agriculture production and beneficiary groups. During the preparation of the RCP, extensive consultations were undertaken with the Government to prioritize roads in the Ouham and Ouham-Pende prefectures. A total of 250 km will be rehabilitated, and 300 km maintained. Table 1.1 below summarizes the selected roads under the RCP.

Table 1.1: Prioritization of Roads (Ouham and Ouham-Pende)

PRIORITE N° PISTE CONSTITUANT

L'ITINERAIRE ITINERAIRE

Long (km)/Stand Long (km)/ priority

A B

1 (Rural Connectivity

Project, P160500)

0630ABCD Paoua (RR6)-Betokomia-Beteine-Betoko-Bemal (RN1) 51

472

0635A-0636AB-0710AB-0711 -0707E

Gouze (RR6)-Bavara-Bomissi-Bade-Bossangoa (RN1) 162

0638-0635C-0707AB-0709 Bavara-Bonguim-Bokoté-Boumentana-Boguila (RN1) 59

0714ABCD Bogoro (RN1)-Bouansouma-Kambakota-Batangafo

(RN4) 146

Betokomia-Benamkor-Pougol 54

2

0617ABC-0621-0622 Letele-Bele-Bilakaré-Taley (RR6) 133

648

0617D Bele-Gouze (RR6) 23

0701B-0702AB-0703-0704A-0705AB Sido-Markounda-Silambi 175

0707C Boumentana-Bomissi 19

0712AB Bomissi-Bangayanga-Mbaoule 60

0718 Kambakota-Pama 38

0719AB Kambakota-Ouugo-Batangafo 112

0732ABC (RR24) Nana Bakassa (RN1)- Markounda 88

3

0601ABCDEFG Mann-Zaguindi-Sarki-Boukaya (RR4) 106

525

0612 Ndim-Mbere Guili 34

0614ABC Kowon-Nzamani-Man Bintélé 52

0628B-0629-0631AB Pougol-Betoko-Begouladje 90

0715ABCDE Bouansouma-Bouaye-Bode-Kouki 80

0721 Nzamboutou (RN4)-Ndoumbou 46

0722A-0723 Bongam-Bongossi-Bandaka 68

0728 Bazian Bea - Lim. Préfecture 49

4 0716 Léré-Kaboro 30

58 0717 Bouaye-Ndali 28

579 1,124

1,703


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30. The project will build on the RCP and complement it where required. Investments in rural roads will assist farmers and agri-MSMEs to facilitate access to input and output markets. A Delegated Management Agency will be contracted to manage and supervise the construction of rural roads and public logistic infrastructure using World Bank quality standards for works that respect environmental and social safeguards. As incidence of GBV is high in the project zone, the project will mitigate against project-related risk of sexual exploitation and abuse by complying with WB SGBV social safeguard requirements.

31. A demand assessment, which is one of the first activities that will be carried out during the first year of the project implementation, to determine: (i) existence and type of markets in the project zone; (ii) demand for agri-logistic services associated with these markets; (iii) ability and willingness to pay for services; and (iv) site identification. Based on this assessment a go- no- go decision will be taken on whether to build, rehabilitate or contract existing infrastructure. The design and scope of any infrastructure will be determined by the demand assessment.

Sub-component 2.2 Infrastructure Maintenance (US$0.5 million) 32. The management, operation and maintenance of public infrastructure post rehabilitation remains a key concern. There is a weak institutional framework (policy, organizations and mechanisms) to ensure the quality and maintenance of the roads post rehabilitation. This sub-component will reinforce the institutional framework for road maintenance and pilot innovative public-private infrastructure management models.

33. Rural roads. Community rehabilitation brigades will be trained and established as LRMC. The LRMC would be mandated to administer rural road maintenance. Mapping of existing road maintenance mechanisms will inform the development of a rural road maintenance strategy that will be partially resourced through the National Road Fund. In addition, all construction enterprises procured by the Designated Management Agency or AGETIP will be mandated to communicate Codes of Conduct for staff that include health and safety standards as well as provisions to prohibit sexual exploitation and abuse for all persons.

34. Management, operations and maintenance of agribusiness logistics infrastructure. A call for proposals will be launched to invite private sector operators to manage, operate and maintain the project’s infrastructure investments. A MOM contract will be signed with the private sector under a PPP agreement. The MOM contract will be determined by demand- users- service provider – cost- model. The main common features are that the MARD engages the contractor to manage service delivery for a duration of two to five years. The management, operation and maintenance contracts will outline management tasks, activities, expected outputs, performance-based fee and standards.

35. The operator will charge and collect a service fee from users for services rendered. The contract will be terminated if services rendered and maintenance do not meet the agreed performance standards. Selected community members will be trained on repair, operations and maintenance protocols, while local authorities and traditional leadership will be given orientation and training on their role in respect to maintenance of public infrastructure. Existing road tax collection mechanisms applied in mining zones, livestock corridors, cotton and coffee production zones will be studied and examined. Based on this analysis and wide consultations, a rural road maintenance strategy will be elaborated, including a description of how provinces could access funds from the National Road Fund.


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Component 3. Improvement of the quality of Agriculture Public Services and Project Management (IDA: US$7.5 million equivalent)

36. This component includes capacity building, the provision of TA, overall project management, ensuring compliance with social and environmental safeguards requirements, and monitoring and evaluation. Capacity building will support the establishment of public-private partnerships in the delivery of agriculture public services and improve government project management capacity at central and decentralized levels.

Sub-component 3.1: Improvement of the quality of Agriculture Public Services (IDA: US$4 million)

37. This sub-component is focused on building the capacity of MARD to deliver quality agriculture public services. TA will be provided to implement key provisions under the Seed Law to spur the development of seed markets (R&D, trials, registration, control and certification). The project will support the capacity building of ICRA, the national agriculture research institution to rebuild its seed bank and adopt nutrition and climate sensitive technologies and strengthen the ONASEM capacity for seed control and certification. Finally, in collaboration with the EU financed Bekou and FAO, ARADSP will support the Agriculture Chamber of Commerce to operationalize a one-stop service windows for rural enterprises. The project will finance TA, workshops, training and analytic studies. 38. In partnership with WFP, TA will be provided to build capacity of the MARD at national and decentralized levels to improve planning, surveillance and M&E capacity. The project will finance training and capacity building of relevant government agencies, TA, workshops, equipment for surveillance and data management and early warning, pest and disease surveillance services (e.g. Fall Army Worm and cassava mosaic disease).The project will also support, to a limited extent, the dissemination of four other agriculture policies:(i) the agro-pastoral code; (ii) cooperative law; (iii) the cotton strategy and road map; and (iv) early warning, pest and disease management policy. The project will finance the costs related to the dissemination of key measures enacted by these once these are approved by parliament.

39. Agriculture public services will be supported to disseminate nutrition and CSA technologies and practices (where possible ICT enabled). The services will improve farmer producer group access to climate information, advice (e.g. climate risk assessment and management), plant and animal health advice and vaccines. Emphasis will be placed on promoting the delivery of services with a specific gender lens.


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40. Capacity building support will be provided to Chamber of Agriculture, the FNEC coupled with investments in physical infrastructure to establish a maximum of four agriculture multi-service centers in partnership with the Chamber of Agriculture, the FNEC with support of the project.

41. The network of private veterinary agents will manage private veterinary pharmacies run by FNEC groups who will organize regular vaccination and de-worming campaigns of small ruminants and poultry. Similarly, the Chamber of Agriculture service point will render services through a network of accredited rural business advisors. Services include entrepreneurship training, cooperative registration, business plan development, accounting and finance services. Logistic service providers registered with the FNEC will partner with the project to provide the needed public services (storage, marketing, transport, etc.).

Sub-component 3.2: Project Management, and Monitoring and Evaluation (IDA: US$3.5 million) 42. This sub-component will ensure management, supervision and monitoring of the project, including proper monitoring of environmental and social safeguards policies. The support will also include a communication strategy to build local ownership and help disseminate project’s results. The project will finance a baseline study, mid-term evaluation, and a final impact assessment of the project.

43. The project will finance the operating costs of the NTPCU at MARD, and the incremental costs of the project’s fiduciary agency (AGETIP-CAF43) and other executing agencies (UN Agencies, NGOs). Technical assistance will be provided on a continual basis to the technical unit). The M&E system will be developed with TA from WFP to build and consolidate existing data sets.

44. To facilitate supervision and project implementation, third-party monitoring will be indispensable, especially as some of the project zones are fragile and prone to violence and instability. An SGBV information system that collects and stores confidential data that is useful for analyzing incident rates, types, risk factors, drivers, factors, survivor and perpetrator details, or case outcomes will compliment this.

Component 4: Contingency Emergency Response (IDA: US$0.0 million)

43 AGETIP-CAF will be responsible for all fiduciary tasks including contracting consultant services, workshops, training and procuring goods.


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45. This component will provide support for immediate response to an eligible crisis or emergency, as needed. A crisis or emergency eligible for financing is an event that has caused, or is likely to imminently cause, a major adverse economic and/or social impact to the borrower, associated with a natural or man-made crisis or disaster. This component will allow the Government to request a reallocation of project funds to partially cover emergency response and recovery costs. This component will be triggered if: (a) the Government has determined that an eligible crisis or emergency has occurred and has furnished to the World Bank a request to include said activities in the CERC for emergency response; (b) the Government has prepared and disclosed all safeguards instruments required for said activities; and (c) the borrower has adopted the CERC OM in form, substance, and manner acceptable to the World Bank. The specific Emergency Response Operational Manual (EROM) for this component will be prepared during the first year of implementation, detailing FM, procurement, safeguards, and any other necessary implementation arrangements. While Components 1, 2, and 3 focus on pre-crisis disaster risk mitigation and climate resilience enhancement measures, Component 4 will help strengthen the Government’s capacity to respond effectively to an eligible crisis or emergency.


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ANNEX 2: IMPLEMENTATION ARRANGEMENTS



Project Institutional and Implementation Arrangements 1. The project will develop multi stakeholder institutional arrangements for rural entrepreneurship and market access activities involving other market players as capacity of Government agencies to handle these activities currently is low. 2. There are many different stakeholders and actors who will be engaged in project implementation. They are presented in the table below.

Table 2.1: Overview of Institutions Participating in Project Implementation

Sector Component 1 Component 2 Component 3 Community based and Local Organization

- Micro-project management committees - Village Finance Commission

- Road Repair brigade (Brigade de cantonnage) - Local Road Maintenance Committee (CLER)

- Plant Clinics - Agents Communautaires de santé animale (Community Animal health agents)

Government - Ministry of Agriculture and Rural Development; - Ministry of Livestock; - Ministry of Forest and Fisheries; - University of Bangui Agriculture; - Cellule Cotton

- Ministry of Public Works; - Ministry of Infrastructure; - Ministry of Commerce; Ministry of Lands

- ICRA; - Chambre d’Agriculture; - FNEC; - ONASEM ; - Etc.

UN Organizations

FAO, WFP UNOPS - WFP

Private Sector Private Cotton Firms, Chambre d’Agriculture, FNEC, Producer’s Associations, Private Financial Institutions (Banks and MFI’s)

Civil works Enterprises; Control bureaus; etc.

AGETIP-CAF

International and National NGOs

During the first month of project implementation

Facilitators of Labor-Intensive Public Works (LIPWs)

Third Party Monitoring

3. There are four key implementing organs: (i) the NPSC; (ii) the NTPCU at MARD which will oversee the technical management, coordination, monitoring and evaluation of the project activities; (iii) a delegated fiduciary management unit; and (iv) implementing partners located within the project zones. The NPSC will be multi-sectoral to ensure the participation of all the relevant Ministries involved in the project. It will be chaired by the


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Cabinet Director at MARD. AGETIP-CAF44 will be responsible for the fiduciary management. Details of implementing arrangements are presented in the chart below (Figure 2.1). 4. The AGETIP-CAF has adequately qualified and dedicated staff to execute the fiduciary responsibilities. The NTPCU will also be responsible for coordinating the implementing partners for the implementation of Component 1, 2 and 3 respectively. 5. For Component 1, project implementation will be carried out by International and Local NGOs contracted to capacitate communities to mobilize, organize and manage community micro-projects. They will be supervised by the NTPCU. Considering the inter-sectoral nature of the component (the subprojects are expected to be essentially agriculture-based projects, to support social cohesion, peace building and re-integration of internally displaced persons (IDPs). NTPCU will be responsible for carrying out technical functions and technical assurance and oversight. The NTPCU will work in close collaboration with the AGETIP-CAF. 6. At the local level CIGs will be established to develop proposals, manage and implement micro-projects. A CIG will have a minimum of 5 members but could have as many as 30 members. Each CIG will establish a micro project management committee (MPMC), that will be accountable for fund use and management as well as achieving the stated objectives and results. The CIGs will be supervised and report to Village Committees (VC). The VC will be composed of: (i) village leaders (traditional authorities); (ii) representatives of youth, women, men, and specific groups; (iii) community-based organizations; (iv) religious organizations; and (v) private sector. Each VC will have a Finance Commission (FC), which will oversee the record keeping and accounting done by the sub project management committees of the CIGs. 7. Payment and record keeping at community sub-project level. The finance commission of the VC will oversee record keeping and accounting done by the subproject management committees. The management committee of the subproject will receive funds from contracted NGOs. The village finance commission will receive periodic reports of fund use and total payments received from the CIGs. The finance commission will also ensure that books of accounts and all other records are responsibly maintained by the subproject management committees. The subproject committee oversees project implementation and is converted to an operational

44 AGETIP-CAF was created in 1994 with the support of the CAR government and the WB and is an active member of the African Association of AGETIPs (AFRICATIP).


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maintenance committee once execution of the project is complete. The finance commission will publish reports on fund use monthly at village level. 8. For Component 2, project implementation will be largely carried out by a dedicated agency and other contracted NGOs with the required technical expertise. Transport (road and bridge construction) as well as logistic infrastructure (markets and storage facilities), will require NGOs with requisite skills to select, contract, build capacity of local contracting enterprises who will in-turn work with local villages to rehabilitate roads and construct infrastructure using the HIMO approach. They will be tasked to : (i) manage project activities during the implementation phase; (ii) ensure sustainability of the projects rural transport and logistics investments through designing, implementing and promoting sound road maintenance practices; (iii) ensure alignment of activities with the entire project and CAR’s rural development policies; (iv) ensure compliance with the World Bank safeguards policies, including child labor and GBV standards; and (v) periodic reporting and documentation of the status of project implementation. The delegated contract manager will lead and steer the contracting process, and manage the contractors recruited to oversee the works in close collaboration with the NTPCU. 9. For Component 3, the NTPCU will work closely with MARD and the Ministry of Fisheries and Livestock to conduct a capacity needs assessment during the first months of project implementation. In partnership and being cognizant of other capacity building interventions supported by other donors, NTPCU will develop a capacity building strategy. Given the weakness in capacity and the challenging post conflict context, TA will be recruited internationally and regionally, associating national capacity building organizations. Emphasis will be placed on rebuilding public administrative systems, procedures and processes, wherever feasible to improve efficiency and effectiveness.

Figure 2.1: Project Institutional and Implementation Arrangements


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Financial Management

10. An FM assessment of the implementing unit designated to manage the project was carried out in March

2018. The objective of the assessment was to determine whether the MARD has acceptable FM arrangements in

place to ensure compliance with World Bank requirements in respect to economy and efficiency. The assessment

shows lack of capacity and experience to take direct fiduciary responsibility for the management of the

project. AGETIP-CAF in its role of FA, will have overall FM responsibilities during project implementation, and will

be strengthened by recruitment of experts, including a senior accountant and internal auditor. The assessment

complied with the World Bank policy on Investment Project Financing (IPF) operations effective August 18, 2017.

11. Arrangements are acceptable if they are capable of accurately recording all transactions and balances,

supporting the preparation of regular and reliable financial statements, safeguarding the project’s assets, and are

subject to auditing arrangements acceptable to the World Bank. These arrangements should be in place when

project implementation starts and be maintained as such during project implementation. AGETIP-CAF has

significant experience with World Bank FM requirements and procedures.

12. Accounting. The SYSCOHADA, assigned accounting system in West and Central African Francophone

countries, will be applicable. AGETIP-CAF will HIBTP to meet project requirements.

Ministry Agriculture and Rural Development

Project Steering Committee

National Technical Project Coordination Unit

AGETIP-CAF Fiduciary Agent

UN Agencies

National NGOs

UNOPS

International NGOs

District Coordination Committee

Village Committee

Micro-project management committee


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13. The assessment concluded that AGETIP-CAF’s FM capacity satisfies the World Bank’s minimum

requirements, and therefore is adequate to provide, with reasonable assurance, accurate and timely FM

information on the status of the project required by the World Bank.

14. The overall FM risk rating is assessed as substantial and mitigation measures proposed (see FM Action

Plan) will strengthen the internal control environment and maintain the continuous timely and reliability of

information produced by the project implementation unit (PIU) and an adequate segregation of duties.

Table 2.2: FM Action Plan

Action Responsible party

Deadline and conditionality

1- Recruit a Senior Accountant with qualifications and experience satisfactory for the World Bank

AGETIP-CAF

Two (2) months after effectiveness

2- Customize accounting software (HIBTP)

3- Recruit Internal auditor (under project P165855) with qualifications and experience satisfactory for the World Bank

4- Recruit an external auditor Six (6) months after effectiveness


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Table 2.3: Risk Assessment and Mitigation

Risk

Risk Rating

Risk Mitigating Measures Incorporated into Project Design

Conditions for Effectiveness (Y/N)

Residual Risk

Inherent risk

Country level As post conflict country, CAR is a high-risk country from the fiduciary perspective. Various PFM weaknesses at all ministries levels in term of governance and public funds management are noted.

H The government is committed to a reform program that includes the strengthening of the PFM through world bank support (P161730 Public Expenditure and Investment Management Reform Project). Use of IDA FM procedures is required for this project.

N H

Entity level The assessment show that have acceptable FM and revealed lack of internal auditor.

S MARD does not have any world bank fiduciary experience. Therefore AGETIP-CAF will be contracted to handle the Financial management responsibilities of the project. relying on a dedicated FM team at this unit and use of IDA FM requirements is critical for the mitigation of fiduciary risk of this project; the adoption of a FM procedures manual by 2 months after effectiveness will mitigate internal control weaknesses.

N S

Project level Project resources may not be used for the intended purposes and Weak coordination among all stakeholders.

S AGETIP-CAF team will be strengthened by additional staff. Training on fiduciary procedures will continue to be conducted for all FM staff throughout the life of the project. Clear ToRs for each responsibility will be agreed between the parties involved to ensure clear understanding and timeframes for reporting.

N S

Control Risk S S

Budgeting The Annual Work Plans and Budgets (AWPB) will be prepared by PIU and approved by the Steering Committee. Weak capacity at the implementing entity to prepare and submit accurate work program and budget; weak budgetary execution and control.

S The project Financial Procedures Manual will define the arrangements for budgeting, budgetary control and the requirements for budgeting revisions. Annual detailed disbursement forecasts and budget required. IFR will provide information on budgetary control and analysis of variances between actual and budget.

N M

Accounting This project will use the accounting software currently using by AGETIP-CAF. It is expected that it continues to use the same software. Delay in keeping reliable and auditable accounting records will be the risk.

S The project will adopt the OHADA accounting system. Accounting procedures will be documented in the manual of procedures (ii) The FM functions will be carried out by qualified financial officer recruited; the existing software will be customized to take into consideration the need for this new project. Staff will be trained on the use the accounting software.

N S

Internal Control This will require additional work for the internal auditor; insufficient safeguards and controls may result in misuse of funds and impact the implementation of the project.

S Elaboration of a FM Procedures Manual and training on the use of the manual by the financial expert. The internal auditor will be recruited. The scope of work and control process is defined through CAR generic manual.

N

S


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Risk

Risk Rating

Risk Mitigating Measures Incorporated into Project Design

Conditions for Effectiveness (Y/N)

Residual Risk

Funds Flow One Designated Bank Account will be opened in a reliable Bank, all project activities will be financed through this Bank account. Risk of misused funds; and (ii) delays in replenishment of the designated account.

S The following are the mitigating measures: (i) Payment requests will be approved by the financial officer together with the project Coordinator prior to disbursement of funds. (ii)The ToRs of the External Auditors will include physical verification of goods, services acquired. (iii) Frequent in-depth reviews will be conducted to ensure that funds are being used for intended purposes.

N

S

Financial Reporting PIU will provide a quarterly Interim Financial Report (IFR) (45 days after the end of each quarter; annual Financial Report (within six months after the year-end) to the World Bank to monitor the utilization of funds for the project. The risk will be to have inaccurate and delay in submission of IFR to the WB.

S (i) A computerized accounting system will be used. (ii) IFR and financial statements formats have been agreed during negotiations. The project coordinating unit will oversee overall reporting. The consolidated IFRs will be submitted to the World Bank no later than 45 days after the end of the quarter.

N M

Auditing The risks are the following: Delay in submission of audit report or qualified opinion and delays in the implementation of audit reports recommendations.

S (i) The project will recruit acceptable external auditors (independent auditors) and the ToRs will include physical verification and specific report on finding of physical controls of goods, and services acquired or delivered. (ii) Annual audit will be carried out during the project implementation period in accordance with Internal Standard Audit (ISA).

N S

Governance and Accountability Possibility of circumventing the internal control system with colluding practices as bribes, abuse of administrative positions, mis-procurement etc. is a critical issue.

S (i) The ToR of the external auditor will comprise a specific chapter on corruption auditing (ii) FM procedures manual approved by 2 months after effectiveness; (iii) quarterly IFR including budget execution and monitoring; (iv) Measures to improve transparency such as providing information on the project status to the public, and to encourage participation of civil society and another stakeholder is built into the project design.

N S

OVERALL FM RISK S S

15. Internal control system. The internal control system will comprise a steering committee to oversee the

project activities and an FM procedures manual to define control activities. The composition, the mandate and

frequency of meetings of the steering committee will ensure adequate oversight of the project. To maintain a

good standard of internal control system in the project given the country’s High risk rating, an internal auditor will

be recruited to strengthen the internal control system.

16. Planning and budgeting. NTPCU will prepare a detailed annual work plan and a budget, which should be

approved by the project steering committee. It will submit the approved annual work plan and budget to the

World Bank for no objection, no later than November 30 of each year.

17. Accounting. The SYSCOHADA, assigned accounting system in West and Central African Francophone

countries, will be applicable. AGETIP-CAF will customize the existing accounting software to meet project

requirements. AGETIF CAF will acquire the latest version of this accounting software.


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18. Interim financial reporting. The IFRs are prepared every quarter and submitted to the World Bank

regularly (e.g. 45 days after the end of each quarter) on time. The frequency of IFR preparation as well as its

format and content will remain unchanged.

19. Annual financial reporting. AGETIP-CAF will produce project annual financial statements, which will comply with SYSCOHADA and World Bank requirements. Financial statements may comprise:

project presentation and project developments and progress during the year, to provide context to (or other explanations of) financial information reported;

statement of sources and uses of funds which recognizes all cash receipts, cash payments, and cash balances;

a statement of commitments;

accounting policies adopted and explanatory notes;

a management assertion that project funds have been expended for the intended purposes as specified in the relevant financing agreements. 20. Auditing. The NTPCU will submit audited project financial statements satisfactory to the World Bank every

year within six months after closure of the borrower’s fiscal year. A single opinion on the audited project financial

statements in compliance with the International Federation of Accountants will be required. In addition, a

management letter will be required. The management letter will contain auditor observations and comments and

recommendations for improvements in accounting records, systems, controls, and compliance with financial

covenants in the Financial Agreement. The NTPCU should recruit a technically competent and independent auditor

no later than six months after the project effective date. The project will comply with the World Bank disclosure

policy of audit reports and place the information provided on the official website within one month of the report

being accepted as final by the team.

Table 2.4: Audit Report Requirements

Report Deadline Responsible

Audited financial statements including audit

report and management letter

6 months after the end of the year PIU

21. Disbursement. Upon Grant effectiveness, transaction-based disbursements will be used. The project will

finance 100 percent of eligible expenditures. A new designated account (DA) will be opened in a commercial bank

under terms and conditions acceptable to IDA. An initial advance up to the ceiling of the DA will be made and

subsequent disbursements will be made against submission of SoEs reporting on the use of the initial/previous

advance. The option to disburse against submission of quarterly unaudited IFRs (also known as the Report-based

disbursements) could be considered, subject to the quality and timeliness of the IFRs submitted to the World Bank

and the overall financial management performance as assessed in due course. The other methods of disbursing

the funds (reimbursement, direct payment and special commitment) will also be available to the project. The

minimum value of applications for these methods is 20 percent of the DA ceiling. The project will sign and submit

Withdrawal Application (WA) electronically using the eSignatures module accessible from the World Bank’s Client

Connection website.


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22. Disbursement under the proposed funding will be made as specified in table 5, which indicates the

amounts and percentages of financing. Project financing under Category 1 covers costs under all project

components apart from the Matching Grants under Sub-component 1.1. and Sub-component 1.2 of the project,

which fall under Category 2 and 3, respectively.

Table 2.5: Disbursement under the Proposed Funding

Figure 2.2: Funds Flow Chart

23. Use of UN Agencies. The funds transferred to any UN agency will be managed by the Agency following UN

Financial Regulations and Rules. As a result, reliance will be placed on the UN agency’s external auditor’s reports

as necessary. The request for elimination of audit requirements will be prepared and should be granted during

contract preparation. To mitigate any risks of inappropriate use of the project funds, some alternative mechanisms

should be established, including: (a) one field-based visit being conducted during the first 12 months of the project

implementation period; the supervision intensity will be adjusted over time considering the project’s FM

performance and FM risk level; (b) Government is responsible for ensuring that works, goods, and services are

delivered effectively to the intended beneficiaries during project implementation. However, where deemed

appropriate (for example, UN agency systems and IFRs have showed some weaknesses or deficiencies), the World

Category Amount of the Grant Allocated (US$)

(1) Goods, works, non-consulting services, consultants’ services, training and workshops, and incremental operating cost

13,000,000

(2) Sub-project Grants under Component 1.1 4,000,000

(3) Sub-project Grants under Component 1.2 6,000,000

(4) Emergency Expenditures under Component 4 0

(5) Refund of Preparation Advance 2,000,000

TOTAL AMOUNT 25,000,000

IDA

PIU Designated Account (commercial bank)

Contractors, Consultants, Suppliers

Supporting documents

Direct payments

Payments

Withdrawal applications Replenishments

Special Commitment

s


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Bank team may request the Government to establish adequate arrangements to conduct physical inspections of

goods and services delivered by the UN agency. It is also the responsibility of the government to follow up with

the UN agencies to obtain the financial reports and ensure that they are acceptable before transmitting the

reports to the World Bank; and (c) the World Bank FM team will have adequate access to the financial information,

documents, and records for activities implemented by the UN agency.

24. Based on the outcome of the FM risk assessment, the following implementation support plan is proposed.

The objective of the implementation support plan is to ensure the project maintains a satisfactory FM system

throughout its life.

Table 2.6: FM Implementation Support Plan

FM Activity Frequency

Desk Reviews

Interim financial reports Review Quarterly

Audit report review of the program Annually

Review of other relevant information such as interim internal

control systems reports

Continuous as they become available

On-site Visits

Review of overall operation of the FM system (Implementation

Support Mission)

At least twice in the year

Monitoring of actions taken on issues highlighted in audit reports,

auditors’ management letters, internal audits, and other reports

As needed

Transaction reviews As needed

Capacity-building support

FM training sessions During implementation and as and

when needed

Procurement

25. Applicable procurement rules and procedures. Procurement for the proposed project will be carried out in

accordance with the World Bank Procurement Regulations for IPF Borrowers (Borrowers Regulations), dated July

2016, revised November 2017, and August 2018, the provisions stipulated in the Financing Agreement and the

World Bank’s Anti-Corruption Guidelines: Guidelines on Preventing and Combating Fraud and Corruption in

Projects Financed by IBRD Loans and IDA Credits and Grants (revised as of July 1, 2016), as well as the provisions

stipulated in the Financing Agreement.

26. All goods and non-consulting services will be procured in accordance with the requirements set forth or

referred to in the Section VI. Approved Selection Methods: Goods, Works and Non-Consulting Services of the

“Procurement Regulations,” and the consulting services will be procured in accordance with the requirements set

forth or referred to in the Section VII. Approved Selection Methods: Consulting Services of the “Procurement

Regulations,” the Project Procurement Strategy for Development (PPSD), and Procurement Plan approved by the

World Bank. The Procurement Plan, including its updates, shall include for each contract: (a) a brief description of

the activities/contracts, (b) the selection methods to be applied: (c) the cost estimates: (d) time schedules: (e) the


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World Bank’s review requirements; and (f) any other relevant procurement information. The Procurement Plan

covering the first eighteen (18) months of the project implementation has been submitted to, and approved by

the World Bank prior to the project negotiation date. Any subsequent updates of the Procurement plan shall be

submitted to the World Bank for approval.

27. The Recipient shall use the World Bank’s online procurement planning and tracking tools to prepare, clear and

update its Procurement Plans and conduct all procurement transactions.

28. Procurement capacity assessment: A procurement assessment was carried in March 2018 to evaluate the

adequacy of procurement arrangements under the proposed project. The preliminary information concluded that:

(i) AGETIP-CAF is well established; (ii) its technical direction staff is familiar with the World Bank’s procurement

procedures (it is currently implementing the emergency World Bank -funded project (LONDO, P152512) in a

satisfactory manner and perceived to also fulfil the fiduciary responsibilities of the World Bank funded project in

education currently under preparation; and (iii) AGETIP-CAF has acquired seasoned experience in the delivery of

similar comprehensive procurement services in managing various programs funded by multilateral donors (i.e.

AfDB, IFAD, EU etc.) in CAR both as a CDMO or FA.

29. Procurement implementation arrangements. AGETIP-CAF will be responsible for the coordination and

implementation of procurement activities of the proposed project. The project implementation teams will be

supported by the Technical Unit at MARD. AGETIP-CAF will be contracted under a sole source basis as a FA to

provide the procurement function on behalf of the MARD. During the course of the project, AGETIP-CAF is

expected to recruit at least three key procurement professionals with procurement qualifications or associated

discipline and sufficient experience in international procurement, including years in post-conflict countries,

international procurement with hands-on procurement experience in World Bank procurement and use of the

World Bank’s Guidelines, procedures and procurement documents to avoid stretching the capacity of the sole

procurement specialist devoted to quality assurance for the whole agency. In addition to the above mentioned,

the Technical unit will be reinforced by recruiting short term experts to support it in the preparation of ToR,

specifications, among other tasks as needed. As the procurement framework regulation and Systematic Tracking

and Exchanges in Procurement (STEP) tools are new, the World Bank will provide intensive training and hands on

implementation support to ensure that procurement and or activity packages have been efficiently delivered.

30. Procurement activities for the project will be executed by AGETIP-CAF on behalf of the MARD in full

accordance with the World Bank guidelines and procedures for the procurement of Goods, Works, Consulting

Services and Non-Consulting Services. The latest versions of the World Bank Standard Bidding Documents (SBD)

and Standard Request for Proposals (SRFP) shall be used and be found under the World Bank procurement

guidelines. Key professional procurement staff will be: (i) responsible for the day-to-day delivery of procurement

services; and (ii) as pro-active as possible in providing solutions where obstacles and difficulties are encountered

in all aspects of the project procurement.

31. Procurement risks analysis: The main risks are particularly inherent in: (i) high risk and weak control

environment; (ii) CAR’s ability to manage public resources undermined by volatile and sensitive environment,

instability and outdated practices; (iii) delays in implementation due to the overall context conditions in CAR; (iv)

delays in implementation from the Contractor’s side and time/cost over-runs. Based on the overall assessment of

http://www.worldbank.org/procure

http://www.worldbank.org/procure


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the implementing agency and the information available on the procurement environment in CAR, the overall

procurement risk is judged to be “HIGH”.

32. Procurement risk mitigation measures. The following mitigation measures have been proposed: (i) at the

fiduciary level, contract management will be the responsibility of the MARD under the overall coordination of

AGETIP-CAF. The latter will be responsible to ensure proper quality of the procurement and contract execution.

The technical team at MARD is well established but its capacity will need to be reinforced as part of the NTPCU

staffing plan during the first months of implementation with qualified technical expertise and experience to

properly supervise execution of the rehabilitation works, and to administer the related contract performance and

workload to avoid termination of contracts, undue turn over and excessive amendments resulting in fines by a

loss of revenue for the project; (ii) AGETIP-CAF shall be required to make provisions for technical specialists to

provide TA, e.g. when required by MARD, drafting of ToRs for selection of Consultants, drafting technical

specifications for goods in particular specialized goods such as inputs, processing units; training materials, IT

equipment specifications and software. The use of a Technical Specialist from the AGETIP-CAF pool must receive

prior approval from MARD; and (iii) AGETIP-CAF will provide dedicated training and hands-on support to ensure

strengthening and capacity building of the fiduciary capacity of the MARD’s Administrative and Financial

Department (Direction Administrative et Financière, DAF) department.

33. National Procurement Arrangement. In accordance with paragraph 5.3 of the Procurement Regulations,

when approaching the national market (as specified in the Procurement Plan tables in STEP), the country’s own

procurement procedures may be used. When the Beneficiary uses its own national open competitive procurement

arrangements as set forth in Public Procurement Code, such arrangements shall be subject to paragraph 5.4 of

the Procurement Regulations and the following conditions : (i) the procurement is open to eligible firms from any

country; (ii) the request for bids/request for proposals document shall require that Bidders/Proposers submitting

Bids/Proposals present a signed acceptance at the time of bidding, to be incorporated in any resulting contracts,

confirming application of, and compliance with the World Bank’s Anti-Corruption Guidelines, including without

limitation the World Bank’s right to sanction and the World Bank’s inspection and audit rights; and (iii)

maintenance of records of the Procurement Process. When other national procurement arrangements other than

national open competitive procurement arrangements are applied by the Beneficiary, such arrangements shall be

subject to paragraph 5.5 of the Procurement Regulations.

34. Procurement methods. The various procurement methods to be used for activities financed by the proposed

Grant have been described in the procurement plan.

35. Procurement of works. Procurement of works will include the rehabilitation and/or construction of feeder

roads and bridges, rehabilitation buildings; rehabilitation of markets and harvest storage facilities; rehabilitation

of water sources, notably canals, wells and boreholes.

36. Procurement of goods and non-consulting services. Procurement of goods will include computer equipment,

vehicles, etc.

37. Procurement of consulting services (firms and individuals). Procurement of consulting services will be carried

out in accordance with the World Bank Procurement Regulation for IPF Borrowers. Consulting services also

include the services of training, the recruitment of NGOs, UN Agencies, consultants (firms) and individual

consultant s as per required for the implementation of the ARADSP.


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38. Frequency of procurement supervision. In addition to the prior review to be carried out by the World Bank,

supervision missions will be undertaken at least once per year. One in five procurement packages not subject to

World Bank prior review will be examined ex post on an annual basis.

39. Procurement Plan. The draft Procurement Plan for the first 18 months has been prepared and finalized prior

to project negotiations. The Procurement Plan will be updated by the fiduciary agency on an annual or as-needed

basis to reflect actual project implementation. Updating of the Procurement Plan will be submitted to the World

Bank for No Objection and the PPSD updated accordingly.

40. Procurement Planning and Tracking Tool. In accordance with paragraph 5.9 of the “World Bank Procurement

Regulations for IPF Borrowers” (dated on July 2016 revised on November 2017) (“Procurement Regulations”) the

World Bank’s STEP system will be used to prepare, clear and update Procurement Plans and conduct all

procurement transactions for the project.

41. Project Implementation Manual (PIM). The draft PIM has been prepared and defines the project’s internal

organization and its implementation procedures, and includes, among other things: (i) the procedures for calling

for bids, selecting consultants, and awarding contracts; (ii) the procedures for community-based procurement and

sample contracts; (iii) the internal organization for supervision and control, including operational guidelines

defining the role of the executing agency and reporting requirements; and (iv) disbursement procedures. The

client will need to adopt the PIM in form and substance acceptable to the World Bank prior to effectiveness.

42. Project Procurement Strategy for Development (PPSD) summary. A short form of the PPSD has been

prepared to ensure the procurement activities are packaged and prepared in such a way as to minimize risks and

expedite implementation considering (i) the market analysis and the related procurement trends, and (ii) the

procurement risk analysis. The PPSD provides the basis and justification for procurement decisions, including the

recommended procurement approaches for the project that have been reflected in the approved Procurement

Plan covering the first 18 months of the project implementation.

43. Procurement prior review thresholds: Procurement methods and World Bank review requirements for the

procurement are summarized in tables below:

Table 2.7: Procurement Prior review thresholds (US$ millions):

Type of Procurement High Risk Substantial Risk Moderate Risk Low Risk

Works (including turnkey, supply and installation of plant and equipment, and PPP)

5 10 15 20

Goods, ICT, and Non-Consulting Services 1.5 2 4 6

Consultants: Firms 0.5 1 2 4

Consultants: Individual 0.2 0.3 0.4 0.5


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Table 2.8: Thresholds for Procurement Approaches and Methods (US$ thousands):

Works Goods, IT and Non-Consulting Services

Shortlist of national Consultants

Open International

≥

Open National

<

RfQ ≤

Open International

≥

Open National

<

RfQ ≤

Consulting services

<

Engineering and construction

supervision ≤

5,000 5,000 200 500 500 100 100 100

Environmental and Social (including safeguards) 44. Environmental category and justification. The proposed project has been classified as Environmental

Category Assessment B and is expected to have site specific environmental impacts. In addition, it is expected to

have positive social impacts namely strengthening social cohesion and building capacity of local communities to

manage and implement community projects.

45. The requisite environmental and social safeguards framework documents (ESMF, IPMP, RPF, and IPPF) were prepared and disclosed in-country on November 12, 2018 and the World Bank’s InfoShop on December 11, 2018. 46. Mechanisms to monitor the implementation of mitigation plans. The NTPCU will directly supervise the

project activities with support from technical institutions (such as the public institutions of agriculture extension,

research institutes, NGOs and the university). Social and Environmental Safeguards experts will be recruited by

the NTPCU and be responsible for elaborating, implementing and monitoring future mitigation environmental and

social safeguards mitigation plans.

Monitoring and Evaluation 47. The NTPCU within MARD will assume overall responsibility for project M&E using the project’s results

framework to issue quarterly updates on overall project implementation. The NTPCU will be responsible for

operationalization of the Results Framework for monitoring and evaluating the project at a consolidated level

through a Results Monitoring System. The NTPCU will establish a new M&E system building on former projects

that have applied the CDD approach. To monitor and track progress on indicators, international NGOs and the UN

organizations selected to facilitate project implementation will work closely with the NTPCU to link up their

monitoring system to that of the NTPCU.

48. The project’s overall M&E system will be built on international good practice for CDD projects, which shall be

enhanced or improved to include specific indicators as required by the project’s Results Framework. Given the

limited capacity of Government in M&E, the system will require that administrative data from the Government

be complemented and triangulated with other sources of information (provided by surveys and third party’s). The

Results Framework will be publicly disclosed and made accessible to local communities engaged with the project.

The M&E system will be geo-coded, to the extent possible and made available in an open data management

system. Every effort will be made to disclose information that is accessible to and comprehensible to local

communities.


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49. Geo-spatial Monitoring and Evaluation solutions. Given the prevailing logistical and security challenges in the

CAR that limit effective on the ground access in some of the selected project zones, solutions in the field of remote

sensing and geospatial analysis will be leveraged for monitoring and evaluation purposes when feasible. To

leverage these tools most effectively, geospatial capabilities will be integrated and applied to project

implementation, namely: (i) geographic targeting; (ii) prioritization of project zones; (iii) community level surveys

and baseline data collection; (iv) security monitoring; (v) third party implementation supervision; and (vi)

coordination with stakeholders and partners.

50. Periodic review of the Results Framework and intermediate outcomes. This will be a necessary part and

parcel of the project’s flexible, progressive and adaptable approach to implementation to progressively monitor

and evaluate results and draw lessons that would inform implementation of subsequent activities. Sequencing of

activities in a structured way would be key.

51. Data collection. The NTPCU shall establish a data collection system to obtain data from the project zones and

carry out community-level surveys on a periodic basis to record baseline data in line with the indicators included

in the project results monitoring framework. Data collected shall be used to update baselines, presenting and

targeting indicator values for all sub-components and results reporting on a quarterly basis. It will transform and

refine MARD’s data collection system as a vehicle to quickly build, scale-up and operationalize similar data flows

and data collection arrangements for the Ministry.

52. Financial and Quality Monitoring. Supervision and monitoring roles will be divided according to the work

performed and specific results being achieved, then relayed to the NTPCU for consolidation on a quarterly basis.

Implementation monitoring will also form the basis for the payment system for contractors for work complete

Progress Reports four times a year. An MIS will be established at the NTPCU and operated by a M&E specialist

who will be supported by a GIS expert and a data analyst who will lead the results measurement exercises with

the guidance of the World Bank Team.

53. Security monitoring and prioritization of zones. A major principle of the project is flexibility and adaptability

on geographic resource allocation to avoid risks of disruption and/or destruction of project investments because

of security reasons. Conflict sensitivity monitoring will be applied which is partially provided by bottom-up

consultations with communities and MINUSCA and the state and triangulated by top-down geographic remote

tracking systems of security data on a periodic basis. The collected data will be used for analysis and will be

partially public. In addition to this remote monitoring of displacement trends, socio-economic indicators, food

security and nutrition indicators and environmental factors will be used to inform zone selection and targeting of

beneficiaries. All these factors are useful in determining the accessibility of select areas and feasibility of project

activities. Once results are reviewed every 12 months, the indictors will be adapted accordingly.

54. To manage the impact of instability and conflict on project implementation, a simple 3-step project cycle will

be applied. This in-built flexibility will allow the project to implement different project components in a cohesive

way informed by periodic local conflict assessments carried out by MINUSCA. The phased and sequenced

framework is comprised of three distinct phases: (i) piloting; (ii) scaling-up; and (iii) evaluation. The project will

assess, pilot activities in each zone to draw early lessons and then scale-up. The evaluation phase will allow the

project to document, examine approaches and results to identify gaps that need bridging. Project activities will

be launched respecting the phased and sequenced framework. In addition, each component will be implemented


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in line with a modular 4-stage approach: (i) assessment; (ii) community mobilization; (iii) implementation

(Component 1, 2 or 3); and (iv) consolidation. All three projects components will be implemented in compliance

with the four stages described above. In the event of unexpected incidences of violence and conflict in a specific

zone, the project will suspend activities. The security status will inform when project activities will start and after

a needs assessment determines which component will be implemented in the zone.

55. Implementation support and coordination with partners. Broad thematic areas that will be supervised and

monitored include the following: (i) Social and Environmental Monitoring; (ii) Regular Quality Supervision and

Certification; (iii) Periodic Physical Progress and Process Monitoring and Third-Party Quality Audits; and (iv) Results

Monitoring and Evaluation. All procurement activities at the component, sub-component and microproject level

will also be closely monitored by Procurement Specialists at AGETIP-CAF. All the thematic areas aside from

procurement will be contracted to a third-party to carry out.

56. To facilitate monitoring, the interventions carried out in target zones will be geo-tagged through use of smart

phones, tablets and other relevant Global Positioning Systems (GPS) devices. The following interventions will be

tagged: (i) community managed micro projects; (ii) youth and women-based start-up businesses; (iii) rehabilitation

of rural roads for improved access to transport services (geographic foot prints of targeted roads and bridges); (iv)

capacity building for government institutions. A systematic recording and monitoring of the geographic foot print

of the project will serve to feed the gap analysis and facilitate coordination with development actors. Training and

capacity building will be provided to all relevant actors.

57. Social accountability, community engagement mechanisms such as GRM will be established. Social

accountability will be enhanced by introducing citizen feed-back mechanisms in project interventions under

components 1 and 2 and the M&E system. The aim is to enhance CE in decision making during project

implementation and shape the design of micro-projects. The project will disseminate project related information

to beneficiaries and establish open mechanisms to address beneficiaries’ grievances and complaints. Conflict-

sensitive indicators will be used to provide early warning of potentially negative impacts of interventions, which

may necessitate mitigation strategies to adapt interventions. Community involvement could involve community-

based mapping results for example, using simple cell phone-based applications that provide location-based

information and photos as evidence of progress (roads, vaccination parks, or cash for work activities

implemented).

58. The GRM will report to existing state-level citizen oversight committees. Monitoring and feed-back will take

place at all levels, CIGs, village committees, district and provincial level.

59. In summary, the project will establish a multiplier and quality oversight and control, results monitoring

mechanism. The mechanism involves: (i) physical quality control and supervision; (ii) a result-based monitoring

and elevation system; (iii social accountability and grievance redress); and (iv) third-party monitoring of project

performance, verification and audits.

Role of Partners 60. The project is based on the principle of multi-partner programmatic solutions to crisis recovery of the

agriculture sector. Given the overwhelming and urgent needs in the project zone, Government institutions and

and the development partners are engaged in meeting those needs. On the Government side, this includes the


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Agriculture Chamber, ONASEM, ICRA, ANDE, ACDA, and National Office for Agro-Pastoral Equipment (Office

National de Matériels Agro-Pastoraux, ONMAP). On the side of development partners there is: the EU, IFAD, AfDB,

FAO, WFP, AFD and USAID. On the private sector side, this includes cotton private firms, Ecobank and other

enterprises.

61. The World Bank consulted and convened these actors during consultation sessions over the course of project

preparation. The project has been designed through a rigorous multi-stakeholders and multi-partner process

spanning a year. A government led multi-stakeholder project preparation committee was put in place to establish

strategic parameters, operational principals and that underpin the proposed design and approach of the project.

62. Project implementation will also follow an inclusive and consultative process with key development partners

through a new coordination mechanism for project implementation to ensure strategic harmonization and

operational coordination across relevant and inter-related interventions under various ongoing development

partner programs. The project will also continue to leverage and promote the national crisis recovery and peace

building strategy.

63. Alignment with other Donors and Development Banks. It was agreed that common implementation

modalities and institutional arrangements will achieve economies of scale. Going forward, this will entail close

collaboration between the World Bank, EU, AfDB and IFAD in the areas of: (i) prioritization and sequencing of

interventions and gap analysis to determine how to allocate resources in capacity building and infrastructure

activities across the various projects; (ii) coordinated capacity building support for efficient and effective program;

and (iii) sharing information, harmonizing and participating in common coordination platforms.


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ANNEX 3: IMPLEMENTATION SUPPORT PLAN



Strategy and Approach for Implementation Support

1. The proposed Implementation Support Plan (ISP) is informed by: (i) lessons accruing from past World Bank projects in CAR and FCV situations; (ii) the risk profile of the project; and (iii) considerations of the rapid speed of execution of the project in a volatile environment. 2. The project presents multiple implementation support challenges: (i) a volatile and potentially insecure operating environment; (ii) difficult physical access to the targeted project areas; and (iii) potential fragmentation due to multiple implementing partners, including NGOs and UN agencies. The targeted project intervention zones are: (i) Ouham and Ouham-Pendé regions in the north-western part of the country; (ii) Bamingui Bangoran and Vakaga regions in the north-eastern part; and (iii) Ouaka around Bambari in the central corridor. As these areas are relatively dispersed across the country, World Bank supervision missions to all project sites during the life of the project would be very challenging given the resources allocated by the World Bank to project supervision. Furthermore, due to the fluid security situation and concomitant travel restrictions, the project will be implemented in areas that the World Bank team may not always be allowed to visit during the lifespan of the project. 3. These operating conditions are not uncommon in FCV environments, and the World Bank has developed new practices for efficient implementation support in such settings. The ISP builds on the most recent advances in the field of “smart supervision”: use of new technologies; partnerships with humanitarian and peace actors; enhanced M&E frameworks; and remote management. 4. The ISP combines four interlocking supervision and monitoring tools. Each instrument addresses a specific operational challenge on its own, but the combination of all four tools is what sets the plan apart from a “business as usual” approach to supervision. The approach will combine smart supervision with additional tools that will allow for enhanced monitoring of the project’s implementation progress. This approach is described in Figure 1 below and the four proposed instruments are as follows:

a. Conduct field smart supervision missions: Leveraging the World Bank’s expertise on fragile and conflict settings and the expert support of the FCV Global Theme unit and Corporate Security, periodic field missions will be organized to areas where World Bank security allows. In addition, the field presence of MINUSCA in the country is essential to the WB’s risk-mitigation and security arrangements. At least two field smart supervision missions are planned per year. b. Invest in Enhanced M&E frameworks: Project execution will be entrusted in part to established NGOs with a proven track record in the country, and UN agencies, with whom the World Bank has established standard partnership agreements, including detailed reporting requirements. One of the justifications for these partnership arrangements is precisely because the NGOs and UN agencies’ footprint on the ground is deeper than the WB’s. Furthermore, the NTPCU is expected to hire an independent verification agency (NGO or firm), that will provide support to the NTPCU in objectively


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evaluating project implementation progress and double-checking results as needed. The ToRs of such independent verification agency are close to those of a third-party monitor in data collection and analysis and they will include a requirement for simultaneous submission of reports to both the NTPCU and the World Bank to allow for enhanced monitoring by the Client and remote supervision by the task team of project activities in areas where physical access is constrained.

c. Apply ICT-based supervision and M&E architecture. In cooperation with the CMU and the FCV Group, the project will establish a customized architecture for M&E as well as supervision, based on the World Bank’s Geo-Enabling Initiative for Monitoring and Supervision (GEMS). GEMS enable project teams to use open source tools for in-field collection of structured digital data that automatically feeds into a centralized M&E system. The integrated data will include the key project indicators, based on tailor-made forms; photos, audio, videos; time and date stamps; and GPS coordinates that allow for automated geo-mapping of the information. Using these tools systematically allows the project to enhance the transparency and accuracy of M&E and increase accountability. Moreover, it provides a platform for remote supervision, real-time safeguards monitoring, and portfolio mapping for coordination across projects and partners. d. Assess periodically project’s results/impact through Iterative Beneficiary Monitoring (IBM): The project will use IBM to collect data from direct project beneficiaries with access to mobile phones. IBM is a small-scale high frequency phone-based data collection mechanism, developed by the Poverty GP team, that collects data from project beneficiaries to create a beneficiary feedback loop and serve as an alert system. The approach is expected to improve project efficiency and increase beneficiary engagement and satisfaction. It will also help examine project activities, identify challenges within the project, inform decision-making process and improve project outcomes based on the feedbacks from beneficiaries. IBM will allow for rapid “progress assessment and correction”. It was successfully implemented in Mali for projects facing similar access challenges.


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Figure 3.1. Implementation Support Strategy (smart supervision options)

5. The World Bank implementation support strategy for the proposed project has been developed based on the nature of the project and its risk profile. The Systematic Operations Risk Rating Tool (SORT) rates the overall implementation risk as HIGH, with the following elements considered to be substantial or high: (i) political and governance; (ii) macroeconomic; (iii) institutional capacity for implementation and sustainability; and (iv) fiduciary. The risks emanate from the sensitive nature of project interventions, targeting criteria and geographical coverage and the weak institutional coordination amongst implementing entities. The strategy is designed to offer timely, flexible and efficient implementation support to the client to help mitigate the risks. The strategy recognizes that specialized UN agencies and NGOs with requisite expertise as well as fiduciary protocols acceptable to the World Bank are retained to support the Government in implementation. The strategy will be periodically be reviewed and revised as deemed appropriate.

ISP and Resource Requirements

6. The World Bank’s ISP for the project is cognizant of the FCV context of the project and draws from lesson learned from other World Bank projects implemented in the country and in other countries with similar contexts. The basic principles that underpin ARADSP ISP include: (i) the need for intensive risk-based implementation support; and (ii) maximizing the use of national staff, international staff and consultants on an as needed basis. The plan will be regularly reviewed and revised as required. 7. The ISP includes review of Implementation performance and progress. The World Bank team will monitor progress on several fronts including: (i) key performance indicators as defined in the Results Framework and the projects contribution to the Governments broader programmatic outcome to recovery of the sector; (ii) central project level, sub-regional level and local level micro-project implementation; (iii) independent verification of project activities; (iv) proper fiduciary management of all activities carried out by the NTPCU and other


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implementing agencies; (v) reconciliation of payments with contracts; (vi) supervision of a large number of District level procurement activities; and (vii) monitoring of key legal covenants. 8. Information from various sources will be used to assess progress of the project throughout its implementation. In addition to the data generated through the project’s Management Information and M&E systems, the World Bank will review the findings and results of third-party assessments, environmental and social audits that will be undertaken during project implementation. 9. In addition to formal bi-annual implementation support missions and field visits to the regions and the project components target areas, continuous support will be provided to the NTPCU, AGETIP-CAF and components’ implementing entities, given the relative implementation complexity of the project. The bi-annual Implementation Status and Results Repots (ISR) will be produced to provide World Bank management and the public with progress updates, track risk development and efficacy of mitigation measures. In addition to ISRs, periodic briefings will also be prepared for management. 10. Beyond the tools mentioned above, there will be cross cutting implementation support measures and themes that will require special attention and that will use the above-mentioned tools for smart supervision. These measures and themes are: 11. Mid-term Review: There will be a Mid-term Review (MTR) approximately halfway through implementation to take stock of implementation progress, and to assess performance against the agreed set of indicators and milestones. The MTR will also provide an opportunity to reassess major design features if necessary to enable attainment of project objectives. At the end of the project, both the client and the World Bank will conduct reviews to provide a complete and systematic account of the performance of the project and to draw lessons for future investments. 12. Sexual and Gender Based Violence (SGBV): The project team and partners (Government, NGOs, and UN agencies) will be required to have expertise in-house or contracted to address SGBV/Sexual Exploitation and Abuse (SEA) within project monitoring and supervision. Such SGBV implementation support capacity will allow for the World Bank and the Government to identify any problems or opportunities arising during project implementation and adjust activities to address that gap or opportunity. The SGBV supervision will be closely tied with the project’s GRM system. 13. Although each "smart" implementation support tool is not expensive on its own, the fact that the situation on the ground requires use of a combination of them, implies a larger than normal World Bank supervision budget. Furthermore, the multisectoral nature of the project would necessitate multiple staff and specialties to be mobilized (Table 3.2). 14. The World Bank’s Procurement, FM and Environmental and Social Safeguards Specialists will also provide timely and effective support. In addition to carrying out an annual ex-post review of procurement that falls below the prior thresholds, the Procurement Specialist will provide routine support to AGETIP-CAF who is responsible for procurement and FM activities for the project. The Financial Management Specialist will review all FM reports and audits and take necessary follow-up actions as per the World Bank procedures. These team members will also help identify capacity building needs to strengthen procurement and FM capacity. Bi-annual inputs from Environment and Social Specialists will be required throughout the project, and both formal implementation


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support missions and routine field visits will ensure that the ESMF is implemented in accordance with World Bank safeguard policies. The project will also conduct a comprehensive fiduciary assessment of implementing agencies to reduce fiduciary risks. 15. More specifically, FM implementation support missions will be consistent with a risk-based approach and will involve a collaborative approach with the project team. A first implementation support mission will be performed six months after project effectiveness. Afterwards, the missions will be scheduled by using the risk based approach model and will include the following: (i) monitoring of the FM arrangements during the supervision process at intervals determined by the risk rating assigned to the overall FM Assessment at entry and subsequently during implementation; (ii) integrated fiduciary review on key contracts; (iii) review the IFRs; (iv) review the audit reports and management letters from the external auditors and follow-up on material accountability issues by engaging with the task team leader, Client, and/or Auditors; (v) the quality of the audit (internal and external) is to be monitored closely to ensure that it covers all relevant aspects and provides enough confidence on the appropriate use of funds by recipients; (vi) physical supervision on the ground; and (vii) assistance to build or maintain appropriate FM capacity. 16. The objective of the above implementation support plan is to ensure the project maintains a satisfactory FM system throughout the project’s life. Based on the outcome of the FM risk assessment, the following implementation support plan is proposed:

Table 3.1: FM ISP

FM Activity Frequency

Desk reviews

Interim financial reports review Quarterly

Audit report review of the program Annually

Review of other relevant information such as interim internal control systems reports. Continuous as they become available

On site visits

Review of overall operation of the FM system Bi-annually (Implementation Support Missions)

Monitoring of actions taken on issues highlighted in audit reports, auditors’ management letters, internal audit and other reports

As needed, and specifically during supervision missions

Transaction reviews (if needed) As needed, and specifically during supervision missions

Capacity building support

FM training sessions Before project starts and thereafter as needed


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Table 3.2: Implementation support Plan and Resource Requirements

Time Focus Skills Needed Resource Estimate Partner Role

First twelve months

Project launch

Initializing of project components

FM systems functioning effectively

Procurement practices following World Bank norms

Safeguards instruments in place

M& E system established

Assessments (remote sensing baseline studies, resilience mapping, food and nutrition mapping, capacity building needs assessment)

Team Lead

FM, Procurement

Environmental Safeguards

Social Safeguards Specialist

Agriculture Specialist

Agriculture Economist

CDD Specialist

Water Resources,Irrigation/ Climate Smart, ICT, Nutrition and FCV Specialist, SGBV Specialist, CB Specialist

US$230,000

Fully staffed PIUs to operationalize project

Recruit and contract local implementing organizations

Communication about project objectives at all levels

Update implementation and procurement plans

12-24 months

Field tools and guides elaborated

Monitor implementation of project activities

FM, procurement, safeguards

Team Lead

FM, Procurement

Two Safeguards Specialists


Agriculture Economist

CDD Specialist

FCV specialist

ICT Specialist

SGBV Specialist

Rural Infra Specialist

US$180,000

Prepare comprehensive project progress and results monitoring reports in advance of each mission

Update and monitor procurement plan

Organize field visits

Mid-term review

24-48 months

Monitor implementation of project activities

Mid-term review

FM, procurement, safeguards

Team Lead

FM, Procurement

Two Safeguards Specialists


CDD Specialist

FCVSspecialist

ICT Specialist

SGBV Specialist

Rural Infra Specialist

US$200,000

Prepare comprehensive project progress and results monitoring reports in advance of each mission

Organize field visits

Project closing


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Skills Mix Required

Skills Needed Number of Staff Weeks Number of Trips Comments

Agriculturalist, Team Lead

FM, Procurement

Safeguards Specialist


Agriculture Economist, CDD Specialist

Water Resources, irrigation/ Climate Smart, ICT, Nutrition and FCV specialist, SGBV Specialist, CS specialist

20 weeks

8 weeks

8 weeks

8 weeks 4 weeks 4 weeks 4 weeks 4 weeks

Routine Support

June 2019

October 2019

April 2020

October 2020

Project will likely become effective by June 2019 with the first mission occurring July 2019

Task team to support smooth start-up following effectiveness

Ensure safeguards arrangements are built into implementation plans

Review implementation commitment and disbursement status

Support and monitor progress of activities, in-depth technical review of implementation and make needed adjustments to implementation plans

Partners

Name Institution/Country Role

UNOPS Project zones Facilitate LIPWs in public investments (road and rural infrastructure)

FAO WFP

Agriculture Chamber of Commerce MARD

Operationalize a one-stop service window for rural enterprises Improve planning, surveillance and M&E capacity.

International NGO Project zone Facilitate CDD

Contracted Project zones Third-Party Monitoring


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ANNEX 4: ECONOMIC AND FINANCIAL ANALYSIS



1. This annex presents the EFA for the ARADSP. It is structured around three key questions: (1) “What is the project’s development impact?” This is an underlying question to cost-benefit analysis, which considers the expected stream of project benefits and costs, and establishes an explicit causal framework linking project activities to targeted outcomes; (2) “Is public sector provision or financing the appropriate vehicle?” It probes the rationale for public financing and/or implementation, and explicitly considers alternative modes of financing, such as cascade; (3) “What is the World Bank’s value added?” It examines the World Bank’s contribution to the project outcomes, and seeks to determine the benefit from World Bank’s involvement, or whether the proposed project maximizes the development impact. 2. The EFA includes a financial analysis, which uses “indicative enterprise models” or “farm budgets” to assess the financial viability of selected priority commodities. The analysis compares the “with project” to the “without project” scenario to calculate the IRR and net present value (NPV) of the investment. The timeframe is 20 years, with a discount rate of 12 percent, which reflects rural rate of borrowing. The economic analysis evaluates the project’s benefits and costs to the national economy over a period of 20 years with a discount rate of 6 percent. The economic analysis aggregates the (i) incremental benefits of the selected crop and livestock enterprise models (as presented in the financial analyses) in economic terms, (ii) benefits related to improved rural road infrastructure, and (iii) benefits related to potential reduction in GHG emissions and increases in carbon sequestration to be estimated using the EX-ACT (Annex 5). The economic analysis factors in the project’s investment and recurrent costs and provides the economic rate of return and economic net present value of the investment.

3. Development impact. The project’s development benefits correspond to the three project components: (i) increased crop and livestock productivity and production, which is supported by Component 1 “Development Productive Infrastructure and Competencies for Agriculture and Rural Entrepreneurship”; (ii) improved agricultural market access and agribusiness development which can lead to higher market prices and increased sales volume and is supported by Component 2 “Improvement and Maintenance of Public Infrastructure” and (iii) stronger capacity within the Ministry of Agriculture and Rural Development and the Ministry of Livestock and Animal Health to provide public services, supported by Component 3 “Improvement of the Quality of Agriculture Public Services and Project Management”. 4. The first benefit, increased productivity and increased crop and livestock production, is expected to stem from improved access to agricultural inputs, adoption of improved agricultural practices and technologies; and equipment extension, and innovative agricultural practices, promotion of savings and credit. In relation to animal production, productivity and production is expected to increase and mortality expected to reduce as a consequence of adopting improved technologies, management practices and animal health services. These benefits will be assessed in the financial analysis for selected commodities. The second set of benefits will take the form of higher farm-gate prices and value addition that result from improved varieties, agricultural marketing and infrastructure. Under other projects, improved roads reduced the transport costs for agricultural and other goods by up to 30 percent, depending on the mode of transport. Transport and marketing investments are expected to generate increases in the producer prices for agricultural commodities supported under the project. These benefits will be assessed in the economic analysis. The third set of benefits relates to the generation of


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employment and opportunities of self-employment, due to increased production quantities, improved agricultural logistics and services and improved rural roads. Not only is the rehabilitation and maintenance of roads labor intensive and can generate employment in the short term, the provision of roads facilitates access to labor markets and facilitates income-diversification to non-agricultural activities (including in the agri-food and manufacturing subsector, or service sector). Diversified income sources can increase households’ average income and enhance its resilience against climate-related shocks. These benefits will not be quantified in the scope of this analysis. The fourth set of benefits relates to stronger government capacity, is the most difficult to quantify. The project will invest a relatively small share in animal and plant health systems, agriculture extension information management and basic research to improve the overall efficacy of public agricultural services and investments. For the economic analysis, fifth set of benefits stems from the generation of environmental public goods in the form of greenhouse gas mitigation and enhanced carbon sequestration due to improved management crop management practices (e.g. conservation agriculture, crop rotation, improved seeds) or avoided deforestation because of sustainable agricultural intensification. However, the project will also rehabilitate transport infrastructure and support the increase of livestock numbers, which constitute carbon sources. The final net carbon balance of the project will be assessed with the EX-ACT and valued at a shadow price of carbon (according to a recent World Bank guidance note, 2017).

5. Rationale for public sector provision. Public sector financing is justified given the importance of agricultural production to the country’s overall growth and employment, foreign exchange revenues, and poverty reduction and the provision of an environmental public good. A share of the additional household farm revenues will be used to improve the food security status of these households, and the other share will generate monetary revenues for them to meet their minimal recurrent cash needs and investment requirements. To date, farmers and other actors in agricultural value chains have insufficient access to finance to increase their production. High transport and transactions costs, combined with limited information, have all but prevented private investment in agriculture. Public sector involvement to support rural infrastructure is thus crucial. Targeted support for the Ministries in charge of Agriculture and Livestock and other capacity building efforts will increase access to animal and plant health, agriculture information, research, extension, and other public services for the benefit of rural households, producers and value chain actors including food consumers.


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6. Value added of World Bank’s support. The World Bank’s value added is high given the extensive knowledge and expertise generated under other agriculture development projects across the Central African region to date. The proposed project builds on previous implementation experience, local World Bank staff expertise, ongoing government dialogue, and global best practices. Furthermore, the multisector challenge for addressing agriculture development opportunities in CAR makes the World Bank uniquely placed to support the Government through a multi-GP team, which includes Agriculture, Trade and Competitiveness, Transport and Environment. 7. Direct beneficiaries. The proposed project is expected to provide direct socio-economic benefits to approximately 20,000 agricultural households who will benefit from community micro-projects (Sub-Component 1.2, US$6 million). It is expected that under Sub-component 1.2 600 agricultural start-up SMEs and producer organizations will be supported, which could have up to 25 members. In addition, 40 agricultural SMEs would be supported. It is expected that 100 percent of farmers will adopt improved climate-smart agriculture technologies and management practices on their farms. The average farm size is 0.5 ha for vegetable farming and up to 1 ha for staple crops; households have on average 3 goats.

8. Indirect beneficiaries. In addition, the project expects to benefit a range of indirect beneficiaries through the following activities: matching grants for the development of community managed public infrastructure, which can include landscape management, footpaths, soil rehabilitation, afforestation of riverbanks in 200 villages (Sub-component 1.1, US$4 million). These activities could result in increased soil carbon sequestration which can be valued as mitigation co-benefits, or improvements in agricultural land which could further enhance agricultural productivity. However, since these investments are community driven, and not known ex-ante, they will not be considered in the economic analysis to avoid over-estimation. The project supports the rehabilitation and maintenance of public infrastructure such as rural roads and agricultural logistic services (Component 2, US$ 7.5 million). There will be 250 km of gravel road rehabilitated and 300 km gravel roads maintained by the project. CAR’s population density is 7.5 people per km245 and the radius of beneficiaries benefitting from rural road access is approximated at 26 km.46 This will benefit approximately 97,500 beneficiaries (19,500 households), who have access to rehabilitated roads and 117,000 beneficiaries (23,400 households) with access to roads with improve maintenance and thus improved access to urban markets, and at lower cost.47 Markets are also available during the agricultural off-season, when farmers can reap higher commodity prices. In addition, the project will support the rehabilitation of 40 rural logistics and commercialization buildings and infrastructure. The economic analysis will thus consider 10,000 households with access to improved roads and agricultural infrastructures. Lastly, the project will support to capacity building for agricultural public services (Sub-component 3.1, US$4 million), which

45 World Development Indicators (http://databank.worldbank.org) suggest a population density of 7.5 people per km2 of land area

in 2017. Population is based on the de facto definition of population, which counts all residents. The average household size in CAR is 5 people in 2011 (ACAPS (2015), Country Profile Central African Republic.

https://reliefweb.int/sites/reliefweb.int/files/resources/acaps_country_profile_car_27july2015.pdf). Sources

accessed August 1st, 2018. 46 Since no specific data is available for Central African Republic, we use data from Cameroon to approximate average access to roads in urban and rural areas: rural population average access to closest roads is 65 minutes and distance of ca. 26 km; while in urban areas the average time to road is ca. 7 minutes and 1.4 km (Gachassin, M., Najman, B., Raballand, G. (2009): Roads Impact on Poverty Reduction. A Cameroon case Study. Policy Research working paper; no. WPS 5209. Washington, DC: World Bank). 47 We consider beneficiaries living 26km away from the roads on each side of the road. At a population density of 7.5 people/km2, this results in 390 beneficiaries per km rehabilitated/maintained road.

http://databank.worldbank.org/

https://reliefweb.int/sites/reliefweb.int/files/resources/acaps_country_profile_car_27july2015.pdf


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is also expected to benefit a range of stakeholder sin rural areas, which, however will not be quantified in this analysis.

9. Data for the representative enterprise models was received from agricultural experts at FAO in Bangui and technical experts on the project teams.

Financial analysis 10. The financial analysis assesses the financial viability for households to participate in the project under Sub-component 1.1. Given that the project is demand-driven, the specific interventions are not known ex-ante, but will adhere to the principles of climate-smart agriculture. Several commodities have been identified as key commodities and are likely to be subject to investment: cotton, maize, groundnuts, cassava, beans, cow pea and vegetable production. The financial analysis assesses crop and livestock models for cotton, maize, groundnuts, cassava, beans and small ruminants, to assess the incremental net benefits of adopting improved practices. To approximate agri-enterprises supported under Sub-component 1.2., a model for cheese processing is analyzed. The models show the difference between without and with project scenario. The analyses assume a rural rate of borrowing of 12 percent and presents the financial NPV as well as IRR of return over a period of 10 years, benefit-cost ratio (BC-ratio) and switching values for discounted benefits and costs. Results are presented in US$, and where applicable an exchange rate of US$1 = 561 CFA (August 1st, 2018) is applied. 11. The “with project scenario” typically assumes the adoption of fertilizer and efficient fertilizer application according to recommendations, access to improved seeds, and resulting changes in production cost, as well as labor time and cost. The With-project scenario assumes an increase of crop yields by 100 percent over a period of five years (according to productivity targets in the results framework). For cassava an average yield of 3.1 tons/ha (average between 2014-2017)48 is assumed without project, which can be doubled by using Nitrogen, Phosphorous and Potassium Blended Fertilizer (NPK) fertilizer and improved spacing practices/ For maize production, an average yield of 0.9 t/ha was assumed without project, which can be doubled by introducing fertilizer and small equipment. For dry beans average yield of 0.9 t/ha was assumed in the without project scenario, which can be doubled by using improved seeds and small amount of nitrogen fertilizer. Groundnuts had an average yield of 1.3 t/ha which can be increased by improved fertilizer consumption and improved seeds. Cotton (seed) had an average yield of 0.57 t/ha and can be improved by adopting improved fertilizer management practices and improved seeds. 12. For goats, it is assumed that the project introduces vaccination and deworming to reduce mortality and introduce an improved feeding regime which can increase weight and increases sales price. It is assumed a shelter for goats is built. The activities are introduced in a community of 20 farmers, resulting in 60 goats being targeted.

13. Results are presented in Table 1. The financial model for maize shows that an NPV of US$312 can be achieved over 10 years, with an IRR of 98 percent and benefits-cost ratio is 2.31. For beans, the NPV results in US$1,906 with a BC-ratio of 6.1. Groundnuts can achieve an NPV of US$1,400, IRR of 49 percent and a BC-ratio of 2.23; and cassava an NPV of US$543 with an IRR of 36 percent and BC-ratio of 4.03. Cotton could yield an NPV of US$646 with an IRR of 64 percent and a BC-ratio of 1.45. A community of 20 households who are rearing goats

48 Information about average maize, cassava, beans and groundnuts crop yield per hectare (2014-2016) is taken from FAOSTAT, access August 1st, 2018. For beans values from Republic of Congo were taken as approximation since no values for CAR were available.


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could achieve an NPV of US$2,123, IRR of 27 percent and BC-ratio of 1.57. For all indicative enterprises participation in the project is financially viable.

14. The analysis investigates the viability of a cheese production processing facility, to approximate expected financial benefits under Sub-component 1.2. It is expected that hard cheese is produced from 200 liters milk per day and investment entrepreneurs invest into milking machines, processing and packaging machine. The resulting NPV is US$6,570 with an IRR of 20 percent.

Table 4.1. Results of financial analysis.

Switching values

Commodity NPV IRR BC-ratio Benefits Cost

Maize 312 98% 2.31 -0.57 1.31

Beans 1,906 - 6.11 -0.83 4.98

Groundnuts 1,400 49% 2.23 -0.55 1.23

Cassava 543 36% 4.03 -0.75 3.03

Cotton 646 64% 1.45 -0.31 0.45

Small ruminants (goats) 2,123 27% 1.57 -0.36 0.57

Cheese processing 6,570 20% 1.1 -0.1 0.1

Economic analysis 15. The economic analysis contains several elements: (1) financial benefits aggregated over project beneficiaries; cost and benefits are converted from financial to economic terms; (2) accounting for benefits stemming from rural road rehabilitation, which reduced transport cost and facilitates market accessibility; and (3) the analysis accounts for the projects net carbon balance at a shadow price of carbon of between US$39 and US$120 in the low and high price trajectory (World Bank, 2017). The detail calculation with EX-ACT is presented in Annex 5. 16. The economic analysis is conducted for a period of 20 years and accounts for project cost of US$25 million, which are equally divided over 5 years until further information is available and annual recurrent cost of 3 percent over 20 years. Taxes and price contingencies will be deducted from total investment cost when information is available. For imported and tradeable domestic inputs, a conversion factor of 0.85 is applied, and a conversion factor of 0.9 is applied. A discount rate of 6 percent is applied, according to a recent World bank (2016) guidance note. The analysis presents the economic NPV and IRR of the project. 17. Aggregation of community benefits from improved agricultural production. It is expected that 20,000 beneficiaries engage in community matching grants apply improved management practices on 1 ha staple crops


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and 0.5 ha for vegetables, and for 3 goats (per households, in a community of 20 households). It is expected that beneficiaries are equally interested to improve the 6 proposed commodities. In addition, it is assumed that 40 agri-entrepreneurs achieve benefits from cheese processing or related enterprises.

18. Increased earnings due to improved access to roads. The results of improvements in market access – faster travel times and lower transport costs – are accounted in the analysis. a similar model is used as for previous projects in DRC and ROC.49 Because of improved market access and infrastructure, rural producers are expected to increase production and diversify to perishable, high-value crops. Farmers have improved access to markets such as Bangui where food prices are higher, and diets are more diversifying. Based on existing studies50, it is estimated that infrastructure improvements can increase farm-gate earnings by 5 – 15 percent, depending on type of improvement. Table 2 shows the assumptions for maintenance and rehabilitation of rural roads under the project. The resulting annual benefit stream are considered in the project economic analysis from year 3 onwards.

Table 4.2. Key Parameters51 Parameter Rural road

maintenance Rural road rehabilitation

Distance, km 300 km 250 km

Ag HH served/km 78 78

Household annual market surplus DRC, 2012) US$ 300 US$ 300

Increase in farm-gate earnings, % 5% 5%

Total earnings US$292,500 US$351,000

19. Climate mitigation benefits. A greenhouse gas accounting analysis was conducted for the project, showing that the project can generate an annual net carbon sink of -4,018 tCO2e over 20 years. This is valued at shadow price of carbon – at a low and high price trajectory. For the year 2019, a shadow price of US$39 per tCO2e emission is assumed in the low-price scenario and US$78 in the high price scenario and will advance to US$60 tCO2e and US$120 tCO2e emission respectively in year 2038. 20. Sensitivity analysis. To understand whether the economic indicators are robust against changes, sensitivity analyses are conducted for (i) increase in investment cost to up to 30 percent; (ii) decline in crop yields by up to 30 percent; (iii) reduction of adoption rate by up to 30 percent. 21. Results. The project analysis includes three benefit streams: aggregated community benefits from agricultural production, benefits from rural roads rehabilitation and maintenance, and benefits of climate mitigation. The results are presented in Table 3. It is evident that the project is economically viable and robust against changes. It can achieve an economic NPV of US$23.2 million without a shadow price of carbon; and economic IRR of 21.06 percent; with a low and high shadow price of carbon the economic NPV increases to US$25.3 million and US$27.5 million receptivity with IRRs of 22.4 percent and 23.9 percent. The sensitivity analysis

49 Compare Congo Commercial Agriculture project (P159979) and DRC Agriculture Productivity and Commercialization Project (P162517).

50 Ulimwengu, J.M., Funes, J., Heady, D., You. L. (2009): Paving the way for development: The impact of transport infrastructure on agricultural production and poverty reduction in the Democratic Republic of Congo. IFPRI Discussion paper.

http://www.ifpri.org/publication/paving-way-development (accessed August 1st, 2018); UNOPS 2015.

51 Average number of households was calculated based on population density (see para 8 on indirect beneficiaries); market surplus in 2012 is approximated from World Bank’s Agriculture Sector review for DRC (2017); estimated increase in farm gate earnings provided by Ulimwengu et al. (2009).

https://worldbankgroup-my.sharepoint.com/personal/aprasann_worldbank_org/Documents/AP%20WBG%20Data/Office%20Documents/DRC/Papers/Ulimwengu%20et%20al%20-%20Paving%20the%20way%20for%20development%20in%20the%20DRC.pdf

http://www.ifpri.org/publication/paving-way-development


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shows that results are robust to up to 30 percent increase in investment cost and 30 percent reduction in adoption rates. Results will be affected by a steep decline in crop yields with a risk that the NPV turns negative and IRR below discount rate of 6 percent, if public good benefits are not considered.

Table 4.3. Results of Economic Analysis.

Without shadow price of carbon

Low shadow price of carbon

High shadow price of carbon

NPV IRR NPV IRR NPV IRR

Basis value US$23.25 21% US$25.38 22.47% US$27.50 23.9%

Investment cost

+10% US$20.98 19% US$23.10 20% US$25.23 21%

+20% US$18.70 17% US$20.83 18% US$22.95 19%

+30% US$16.43 15% US$18.56 16% US$20.68 17%

Adoption rate

-10% US$19.28 19% US$21.41 20% US$23.53 22%

-20% US$15.32 16% US$17.44 18% US$19.57 19%

- 30%

US$11.35 14% US$13.48 15% US$15.60 17%

Crop yields

-10%

US$6.90 10% US$9.03 12% US$11.15 13%

-20%

(US$3.82) 3% (US$1.69) 5% US$0.43 6%

-30%

(US$14.53) -5% (US$12.41) -3% (US$10.28) -2%


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ANNEX 5: GHG ACCOUNTING ANALYSIS



World Bank Mandate

1. In its 2012 Environment Strategy, the World Bank adopted a corporate mandate to conduct greenhouse gas (GHG) emissions accounting for investment lending. The quantification of GHG emission is a major step in managing and ultimately reducing emissions and is becoming common practice for many international financial institutions. 2. The World Bank has adopted the EX-ACT developed by FAO in 2010,52 to assess a project’s net carbon-balance. This is the net balance of tons of CO2 equivalent (tCO2e) GHGs that were emitted, or carbon sequestered because of project implementation compared to a “without project” scenario compared to the “initial” scenario. EX-ACT thus estimates the carbon stock changes as well as GHG emissions per unit of land, expressed in tCO2e per hectare and year.

The project focus and objectives

3. The project aims to increase agriculture productivity of small-scale farmers and promote micro, small and medium agribusiness enterprises in the north western, north eastern, and central regions of the country. In addition, the outskirt of the commune of Bangui could also benefit from targeted interventions. The project invests in long-term sustainable development by promoting climate-smart and sustainable agriculture practices, that improve the productivity while relieving pressure on natural resources.

Data Inputs in EX-ACT

4. CAR has tropical moist climate and Low Activity Clay soil type. The project duration is 5 years; the capitalization period is assumed to be 15. Dynamics of evolution are assumed to be linear. Default “Tier 1” coefficients are used. 5. The project proposes several activities that can be captured with the GHG accounting tool EX-ACT. Component 1 “Development of Productive Infrastructure and Competencies for Agriculture and Rural Entrepreneurship” assist in rehabilitating and/or building critically needed productive infrastructure through the provision of matching grants for community-driven microprojects identified through participatory processes. Activities include community managed productive infrastructure (internal roads; irrigation or drainage systems; infrastructure for agro-pastoral production systems; micro-hydro dams; community-based early warning systems and communication devices). The project will also promote adoption of technologies, innovations and management practices (TIMPs) to achieve the triple-wins of climate-smart agriculture, aimed at improving water and soil fertility management, promoting livelihoods and crop diversification including drought-tolerant crops, agroforestry, or the improvement of small-scale irrigation schemes, among others. Emphasis will be placed on reinforcing the resilience of small-scale farming communities to re-engage in farming activities enabled with access to agricultural inputs such as seeds, fertilizers, and herbicides.

52 http://www.fao.org/tc/exact/ex-act-home/en/

http://documents.worldbank.org/curated/en/2012/01/16565927/toward-green-clean-resilient-world-all-world-bank-group-environment-strategy-2012-2022


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6. Through Sub-component 2.1 “Development and Maintenance of Public Infrastructure” the project will invest in ensuring all-season accessibility of rural roads by rehabilitation and maintenance through Labor Intensive Public Works. This includes 250K m of gravel road rehabilitated and 300 km gravel roads maintained by the project. The sub-component will also include the construction or improvement of critical local markets, livestock abattoirs, livestock auction markets, vaccination parks, etc. along strategic corridors in the project area. 7. Sub-Component 3.1 on Capacity Building for Agriculture Public Services builds capacity to improve access of rural farmers to agro-veterinary services, to extend the public epidemic-surveillance system and to reinforce the quality control of veterinary care and drugs. In addition, the project will finance the expansion, reach and penetration of public veterinary services by supporting the establishment of a sustainable network of private veterinary agents linked to private veterinary pharmacies. The network of private veterinary agents will organize regular vaccination and de-worming campaigns of small ruminants and poultry in the project area.

Adoption rate. It is expected that 20,000 beneficiaries who receive community matching grants grow 0.25 ha

vegetables and 1 ha staple crops, which results in ca. 25,000 ha. An adoption rate of 50 percent is expected,

resulting in ca 12,500 ha which will be considered in the analysis. Table 5.1 provides data inputs for the current,

without and with project scenario.

Table 5.1: Data inputs to EX-ACT in the current, without project and with project scenario

Activities Current/without project scenario With project scenario

Introducing improved seeds

and improved agricultural

practices.

25,000 ha under traditional

cultivation

12,500 ha under improved agronomic

practices

Expansion of agricultural land

Currently: 5,000 ha tropical

savannah

Without project: conversion to

agricultural land, under traditional

practices

5,000 hectares converted from tropical

savannah, under improved practices

Community matching grants –

management of degraded

lands (landscape

management, soil

rehabilitation, afforestation of

riverbanks)

Currently: 1,000 ha moderately

degraded land

Without project: converted to

severely degraded land

1,000 hectares low degradation land

Introducing improved animal

health services

xx households own ca. 5 goats under

traditional management – 30,000

goats.

Without project: 50 percent

mortality rate: 15,000 goats by year

5

xx households own ca. 100,000

chickens under traditional

management

Mortality rate decreased by 50

percent,

7,500 goats could survive, resulting in

22,500 goats in year 5

Mortality rate decreased by 50

percent,


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Without project: 50 percent

mortality rate: 50,000 chickens by

year 5

25,000 chickens could survive,

resulting in 75,000 chickens in year 5

Rural road rehabilitation 0 km rehabilitated 250 km rehabilitated

Provision of fertilizer

No fertilizers 4,000 farmers receive 50kg of NPK

66t of N per year from NPK

66t of P per year from NPK

66t of K per year from NPK

Table 5.2 : Detailed Results

Project Name Agriculture Recovery and Agribusiness

Support Project Climate

Continent Africa Central African Republic

Dominant Regional Soil Type LAC

Components of the project

Gross fluxes

Without With Balance

All GHG in tCO2eq

Positive = source / negative = sink

Agriculture

Annuals 81,726 -91,746 -173,473

Livestock

Goats and chickens 125,571 176,940 51,370

Avoided degradation 49,287 0 -49,287

Inputs (Fertilizers, roads) 0 70,938 70,938

Total 256,584 156,132 -100,452

Per hectare 14 8 -5

Per hectare per year 0.6 0.3 -0.2

Overall results 8. Overall the estimation results show that agriculture interventions constitute a modest net carbon sink. The gross sink for with project scenario is 156,132 tCO2e, the total net emissions are with an annual net average carbon sink of 4,018 tCO2e.


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ANNEX 6: RISK MANAGEMENT OF GENDER BASED VIOLENCE



1. The project’s approach to GBV risk management and to project related GBV cases will be rooted in a tried and tested response mechanism. The project will carry out a specific GBV assessment prior to implementation of specific interventions. Based on the findings of the assessment, global experiences and lessons learned from past projects a response mechanism will be designed and fine-tuned. The assessment will engage with community members to understand their perceptions of risks of GBV associated with specific tasks, functions and activities related to project implementation.

GBV Context

2. The government’s commitment to human rights was also reflected in the adoption of a national policy on the promotion of equality and equity in 2005. Despite such progress, however, gender inequalities persist. The causes of these inequalities are manifold and well-known. They are economic, institutional and sociocultural. For reasons of social, political, judiciary and cultural discriminatory practices, women remain largely uninvolved in the management and control of resources. Marginalized and becoming increasingly vulnerable, they have difficulties accessing loans due to a lack of financial guarantees, which also hampers their capacity to improve or develop agricultural activities and generate income.

3. GBV in CAR must be considered in the context of the relatively recent armed conflict and its aftermath. A 2004 report by Amnesty International brought attention to the widespread and systematic rapes of women in CAR, perpetrated by combatants of all sides between 2001 and 2003, and nearly 10 years on, recently released another report on the “crisis spiraling out of control” in CAR. Women who attempted to resist were in some cases reportedly beaten severely, stabbed or even killed. There is evidence that female genital mutilation (FGM) is practiced in CAR with 24 percent of women having experienced some form of FGM53. Cultural norms and tradition support domestic violence towards women54.

4. GBV is a national public health and human rights issue in the CAR. The country is in a protracted-crisis, that is characterized by factors that exacerbate

53 Gender Analysis for Carpe 3 May 2013 54 implementation of the Beijing platform for action (1995) and the outcome of the twenty-third special session of the general assembly

Box 6.4: Gender-based violence (GBV) GBV as violence that is directed at an individual based on his/her biological sex, gender identity, or perceived adherence to socially defined norms of masculinity and femininity. It includes physical, sexual, and psychological abuse. GBV can present itself in many different forms, including: Sexual violence: rape, assault, molestation and inappropriate touching Psychological violence: harassment, bullying, insults, controlling behavior, exploitation, or other actions which may cause fear, stress, or shame Physical violence: beating, burning, or abuse that may lead to injury or even death Socio-cultural violence: social ostracism, discrimination, political marginalization or social norms that have negative impacts (e.g. harmful traditional practices such as early and forced marriage, “honor” killings, and female genital mutilation/cutting)


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GBV-related risks. These risks include increased militarization, lack of community and state protection, displacement, scarcity of essential resources, disruption of community services, changing cultural and gender norms, disrupted relationships and weakened infrastructure.

5. The project will promote GBV prevention and mitigation strategies in four distinct ways: (i) prevent sexual exploitation and abuse of women, girls and boys through active community engagement; (ii) support integration of GBV risk reduction strategies in agriculture policies and the delivery of gender sensitive agriculture public services; (iii) mitigate against project-related risk of sexual exploitation and abuse by adopting a risk based management approach to project implementation; (iv) design of coordination and results monitoring systems that promote “no harm” and apply GBV lens to data collection, analysis and reporting.

Community Engagement and Leadership

6. A community-based model that is in line with the CDD approach will be promoted to reducing the risk of exposure to GBV by women, girls and boys. Through active community engagement the project will seek to create safer and more peaceful communities for girls and women by: (i) promoting dignity, equality and nonviolence in a bid to transform harmful social norms against women and girls; (ii) ensuring that selection criteria for community micro-project proposals include women and girl’s economic empowerment; and (iii) building girls’ and women’s safety and resilience through community safety planning and action. By engaging groups who are often overlooked as active and equal partners in the community approach, design, implementation, monitoring and evaluation of GBV related project activities will be tailored to expressed needs.

7. INGOs with expertise in addressing gender-based inequality, GBV and facilitating changes in social norms will be engaged by the project to ensure that implementing agencies at local levels develop and integrate gender strategies, GBV awareness, messaging and training in their community mobilization and training activities. Local facilitators will be trained and equipped with tools e.g. establish positive role models for men and boys within the community, educate people about the roots of GBV, its harmful consequences, women and children’s rights, conflict resolution in communities as a means of resolving issues nonviolently.

8. Selection criteria for community micro-project proposals include women and girl’s economic empowerment indicators. Community proposals that would enable women’s access to land, productive assets (agriculture inputs, livestock, credit, etc.) and or capacity building (literacy, skills) will be prioritized. All micro-project’s will be encouraged to include one gender related activity (role mapping, rights awareness, leadership training, etc.) in their proposal to ensure gender activities get adequate attention. If a group seeks to integrate psychosocial counselling for GBV survivors (group members) as a proposed activity in its project this will also be acceptable.

9. Girls’ and women’s safety and resilience will be built through community safety planning and action. Safety mapping will be carried out at local levels to identify GBV risks at individual, household and community levels. GBV risks associated with gender-based tasks (e.g. water and firewood collection) would be discussed and local solutions identified e.g. local security patrols. Men and boys would be key in ensuring positive outcomes. A Security Audit would be undertaken after the mapping to analyze risks at household, water and sanitation access, community level and risks form armed groups. Recommendations and actions will be taken to reduce risks and increase safety and security of women/men and girls/boys in the community. This will be complemented by a

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community mapping to identify which services are available to women/men and girls/boys to prevent and respond to GBV, and to assess the community’s knowledge of those services.

Enabling Policy Environment 10. Support integration of GBV risk reduction strategies in agriculture policies and the delivery of gender sensitive agriculture public services. Program planners, advocates, and national and local policymakers will be targeted to encourage them to include GBV prevention and mitigation strategies in national, local laws and development policies. Emphasis would be placed on including customary laws and policies that promote and protect the rights of women, girls and other at-risk groups. Activities will be limited to training agriculture extension staff and supporting the revision and adoption of national and local laws and policies, through TA.

Mitigating Project related GBV-Risk 11. Mitigation against project-related risk of sexual exploitation and abuse by adopting a risk-based management approach to project implementation. Protection against Sexual Exploitation and Abuse (PSEA) relates to the responsibility to preventing incidents of sexual exploitation and abuse committed by UN, NGO, and inter-governmental organization (IGO) personnel against the affected population. The idea is to intensify attention and accountability around sexual exploitation and abuse.

Codes of Conduct for staff that include Health and Safety standards as well as provisions to prohibit sexual

exploitation and abuse for all persons, mandatory for all procured contracts e.g. road construction

enterprises to NGOs facilitating the CDD approach;

Implementing agencies and contracted parties need to demonstrate social and labor practices that prevent

gender-based abuse and violence;

Strengthen the CE and Grievance Redress Mechanism (GRM) put in place by the project. Social accountability

will be a basic principal and strength of the system. The RM will be enforced to include documentation of

sexual exploitation and abuse complaints. Confidentiality and security of information would be assured

through use of ICT;

Setting up confidential reporting mechanism through a 24-hour telephone number “Alert-line” to facilitate

taking safe and ethical action as quickly as possible when incidents do occur;

Providing clear guidance and incident-reporting protocols that encourage identification, documenting and

tracking of GBV incidences amongst project implementing agencies. This will be captured in the project

implementation manuals;

Recruitment of GBV specialists to integrate GBV risk-reduction strategies in project implementation. These

specialists can advise, assist and support through specific activities, such as: (i)conducting GBV-specific

assessments; (ii) ensuring appropriate services are in place for survivors; (iii) developing referral systems and

pathways; (iv) providing case management for project induced GBV survivors; (v) developing trainings for

implementing agencies on gender, GBV, women’s/human rights, and how to respectfully and supportively

engage with survivors; and

Third-Party Monitor to ensure provisions to prevent and respond to sexual exploitation and abuse are in

place and functioning.

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12. Design of coordination and results monitoring systems that apply GBV lens to data collection, analysis and reporting. The M&E system will consider the ways in which all data collected—including information that may not seem ‘GBV-related’ could have implications for GBV prevention and mitigation. The following actions will be taken to ensure adequate GBV reporting by the project:

Conduct gender analysis. Including a gendered

power analysis (i.e. analysis of the specific socio-

economic circumstances of men and women) to

understand the specific factors affecting

violence against women and girls in the targeted

project zones.

GBV risk assessment to avoid doing harm. GBV

risk analysis are essential for mapping out which

women, girls, boys, and men will be directly or

indirectly affected by the CDD project. The study

will engage with community members directly

involved in the project to understand their

perceptions of risks of GBV associated with

specific tasks, functions and activities related to

project implementation or design. Their

experiences with GBV will also be captured.

GBV Information System. A safe collection,

storage system for compiling data which is

useful and effective for analyzing incident rates,

types, risk factors, contributing/causative

factors, survivor details, perpetrator details, or case outcomes. This will obtain a reliable picture of the GBV

profile of target project zones. A feasibility assessment will be carried out to determine the extent to which

this could be community managed.

Box 6.5: Potential negative impacts of improved road connectivity

Increased trade in bushmeat from protected species,

illegal timber and illegal minerals. This trade not only

poses risks to the environment, climate but also

provides economic benefits to armed groups.

Increased prevalence of HIV/AIDS and infectious

diseases.

Economic exploitation, including extraction of rent

through establishing road blocks and enforcing

informal taxes by both state security institutions.

Sexual exploitation.

Risks of conflict, through increased use of the roads

by armed groups, banditry along the road if armed

groups’ control of areas is successfully challenged by

the state.

Risks to civilian protection due to increased presence

of and activity by both armed groups and formal

security institutions.

Negative impacts upon people’s livelihoods, since

the access provided by the roads may make the land

in the vicinity and its natural resources more

attractive to powerful individuals or groups and

result in attempts to capture such land and/or

resources.

Increased road traffic deaths and injuries.