programme for rural irrigation development · 2015-11-24 · pm&e planning, monitoring and...
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Document Date: 30-Oct 2015
Project No. 1100001670
East and Southern Africa Division
Programme Management Department
Republic of Malawi
Programme for Rural Irrigation Development
Design completion report
Main report and appendices
Republic of Malawi
Programme for Rural Irrigation Development
Design completion report
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Contents
Currency equivalents iii
Weights and measures iii
Abbreviations and acronyms iv
Map of the programme area vii
Executive Summary viii
Summary tables of the Economic and Financial Analysis xv
Logical Framework xvii
I. Strategic context and rationale 1
A. Country and rural development context 1
B. Rationale 4
II. Programme description 6
A. Programme area and target group 6
B. Development objective and impact indicators 11
C. Outcomes/Components 12
D. Lessons learned and adherence to IFAD policies 24
III. Programme implementation 25
A. Approach 25
B. Organizational framework 29
C. Planning, M&E, learning and knowledge management 33
D. Financial management, procurement and governance 35
E. Supervision 36
F. Risk identification and mitigation 37
IV. Programme costs, financing, benefits and sustainability 40
A. Programme costs 40
B. Programme financing 41
C. Summary benefits and economic analysis 41
D. Sustainability 43
List of Figures
Figure 1: Schematic of PRIDE’s targeting of scheme cluster areas 9
Figure 2: the community planning and investment agreements (CPIA) process 13
Figure 3: Phasing of irrigation scheme development 16
Figure 4: Environmental and social safeguards framework and procedures 28
Figure 5: Structure of the Programme Coordination Office 30
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List of Tables
Table 1: Irrigation schemes short-listed for PRIDE 7
Table 2: Irrigation scheme reserve list 8
Table 3: Total and estimated beneficiary population in PRIDE pre-selected scheme cluster areas
8
Table 4: Target group typology 9
Table 5: Lessons learned 24
Table 6: Entities and activities during preparation 26
Table 7: Entities and activities during implementation 26
Table 8: Entities and activities during joint review 27
Table 9: PCO staff roles and duties (generic) 31
Table 10: Programme costs summary by year and by component (thousand US$) 40
Table 11: Programme financing plan (000 USD) 41
Table 12: Start-up financing facility 41
Table 13: Direct Programme Beneficiaries 42
Table 14: Sensitivity analysis 43
Appendices
Appendix 1: Country and rural context background 47
Appendix 2: Poverty, targeting and gender 51
Appendix 3: Country performance and lessons learned 57
Appendix 4: Detailed programme description 59
Appendix 5: Institutional aspects and implementation arrangements 75
Appendix 6: Planning, M&E and learning and knowledge management 85
Appendix 7: Financial management and disbursement arrangements 91
Appendix 8: Procurement 97
Appendix 9: Programme cost and financing 101
Appendix 10: Economic and Financial Analysis 129
Appendix 11: Draft programme implementation manual 155
Appendix 12: Compliance with IFAD policies 157
Appendix 13: Contents of the Programme Life File 161
Appendix 14: Climate change adaptation and climate-smart agriculture 163
Appendix 15: Mainstreaming nutrition 175
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Currency equivalents
Currency Unit = Malawi Kwacha (MK)
US$1.0 = MK 440
Weights and measures
1 kilogram = 1000 g
1 000 kg = 2.204 lb.
1 kilometre (km) = 0.62 mile
1 metre = 1.09 yards
1 square metre = 10.76 square feet
1 acre = 0.405 hectare
1 hectare = 2.47 acres
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Abbreviations and acronyms
AAF African Agricultural Fund ACIAR Australian Centre for International Agriculture Research ADC Area Development Committee ADD Agricultural Development Division ADMARC Agricultural Development and Marketing Corporation ADDs Agricultural Development Divisions AEDC Agricultural Extension Development Coordinator AEDO Agricultural Extension Development Officer AfDB African Development Bank AM Adaptive Management ASAP Adaptation for Smallholder Agricultural Programme ASARECA Association for Strengthening Agricultural Research in Eastern and Central Africa ASWAp Agriculture Sector Wide Approach AWPB Annual Work Plan and Budget BBTV Banana Bunchy Top Virus B/C Benefit cost ratio BMI Body Mass Index CA Conservation Agriculture CAADP Comprehensive Africa Agriculture Development Programme CARDESA Centre for Agricultural Research and Development for Southern Africa CBNRM Community-based Natural Resource Management CCA Credit Ceiling Authority CGIAR Consultative Group on International Agricultural Research COSOP Country Strategic Opportunity Programme CPIA Community Planning and Investment Agreement CPR Completion Programme Report CRIDF Climate-Resilient Infrastructure Development Fund CQC C-Quest Capital CSA Climate Smart Agriculture CSM Community Sensitisation and Mobilisation DADO District Agriculture Development Officer DAES Department of Agricultural Extension Services DC District Councils DCCMS Department of Climate Change and Metrological Services DFID Department for International Development DIO District Irrigation Officer DOI Department of Irrigation DPIST District Planning and Implementation Support Team DPD Director of Planning and Development EAD Environmental Affairs Department EIA Environmental Impact Assessment EIB European Investment Bank EIRR Economic Internal Rate of Return EMA Environment Management Act EMC Executive Management Committee EPA Extension Planning Area EPIC Economic and Policy Innovation for Climate Smart Agriculture ERP Economic Recovery Plan ERR Economic Rate of Return ESIA Environmental Social Impact Assessment ESMP Environmental Social Management Plans EU European Union FAO Food and Agriculture Organisation FBS Farmer Business School FFS Farmer Field School FISP Farm Input Subsidy Programme FMA Financial Management Assessment FMAQ Financial Management Assessment Questionnaire FOREX Foreign Exchange
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FUM Farmers Union Malawi FY Financial Year G8NA G8 New Alliance for Food Security and Nutrition GALS Gender Action Learning System GAPs Good Agricultural Practices GBI Green Belt Initiative GBV Gender-Based Violence GCM General Circulation Model GDP Gross Domestic Product GEF Global Environment Facility GII Gender Inequality Index GIS Geographical Information System GLTN Global Land Tools Network GOM Government of Malawi HACCP Hazard Analysis and Critical Control Points HH Households HIV/AIDs Human immunodeficiency Virus/Acquired Immune Deficiency Syndrome HVC High Value Crop ICB International Competitive Bidding ICT Information and Communications Technologies IFAD International Fund for Agricultural Development IFC International Finance Corporation IFMS Integrated Financial Management Information System IHFP Integrated Homestead Food Production IHS3 Third Integrated Household Survey IMPIF Irrigation Master Plan and Investment Framework IPC Internal Procurement Committee IPM Integrated Pest Management IRLADP Irrigation, Rural Livelihoods and Agricultural Development Project ISD Irrigation Service Division JICA Japan international Cooperation Agency KM Knowledge Management LCS Least Cost Selection LUANAR Lilongwe University of Agriculture and Natural Resources MASAF Malawi Social Action Fund MCCCI Malawi Confederation of Chambers of Commerce and Industry MDD-W Minimum Dietary Diversity for Women MDG Millennium Development Goal MDHS Malawi Demographic Health Survey M&E Monitoring and Evaluation MDTF Multi-Donor Trust Fund MGDS Malawi Growth and Development Strategy MICF Malawi Innovation Challenge Fund MITC Malawi Investment Trade Centre MK Malawian Kwacha MLHUD Ministry of Lands and Housing and Urban Development MM Malawi Mangoes MMF Malawi Mangoes Foundation MOAIWD Ministry of Agriculture Irrigation and Water Development MOFEPD Ministry of Finance Economic Planning and Development MLGRD Ministry of Local Government and Rural Development MONREM Ministry of Natural Resources, Energy and Mining MTR Mid-Term Review NAPA National Adaptation Programme of Action NASFAM National Smallholder Farmers Association of Malawi NCB National Competitive Bidding NCCIP National Climate Change Investment Plan NEAP National Environmental Action Plan NECS Nutrition Education and Communication Strategy NES National Export Strategy NFC Not From Concentrate NGO Non- Governmental Organisation NIDF National Irrigation Development Fund NIPDS National Irrigation Policy and Development Strategy NPV Net Present Value
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NRM Natural Resource Management NSO National Statistics Office OBM Opportunity Bank of Malawi ODPP Office of Directorate of Public Procurement O&M Operation and Maintenance PBAS Performance-based Allocation System PCN Project Concept Notes PCO Programme Coordination Office PCR Programme Completion Report PDG Programme Design Group PDO Programme Development Objective PFM Public Finance Management PIU Programme Implementation Unit PM&E Planning, Monitoring and Evaluation PPF Project Preparation Facility PPPP Public Private Producer Partnership PRA Participatory Rapid Appraisal PRIDE Programme for Rural Irrigation Development PS Principal Secretary PSC Programme Steering Committee QBS Quality-Based Selection QCBS Quality and Cost-Based Selection RAP Resettlement Action Plan RBA River Basin Authority RFQ Request For Quotation RLEEP Rural Livelihoods and Economic Enhancement Programme RIDP Rural Infrastructure Development Programme RIMS Results and Impact Management System SAPP Sustainable Agricultural Production Programme SBD Standard Bidding Documents SCPMP Smallholder Crop Production and Marketing Project SH Smallholder SHF Smallholder Farmer SHFS Smallholder Food Security SLTMP Smallholder Farmer Linkage To Market Platform SME Small and Medium Enterprises SOE Statement of Expenditure SSCF Small Scale Commercial Farmers STD Sexually Transmitted Diseases SUN Scaling Up Nutrition TA Technical Assistance TAF Technical Assistance Facility TAG Technical Advisory Group TLC Total Land Care TSLI Tenure Security Learning Initiative UNDP United Nations Development Programme USD United States Dollar VAT Value Added Tax VDC Village Development Committee WaSWAp Water Sector Wide Approach (not formed as yet) WB World Bank WEAI Women’s Empowerment in Agriculture Index WFP World Food Programme WUA Water User’s Association WUG Water User’s Group
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Map of the programme area
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Executive Summary1
Strategic context and rationale
1. Malawi has a predominantly agricultural economy, with 80% of the population depending on
subsistence farming. Approximately 76% of the population live below the income poverty line of
USD 1.25/day and 90% below the USD 2.0/day threshold. The proportion of poor and ultra-poor is
highest in rural areas of the southern and northern regions. More than 80% of the rural population is
smallholder farmer (SHF) under customary land tenure. They cultivate small and fragmented
landholdings over approximately 2.4 million hectares, with low yields, and are subsistence-oriented.
Average landholding size has fallen from 1.5 ha in 1968 to around 0.9 ha today.
2. Rural livelihoods in Malawi are in a state that is both precarious and stagnant. Low productivity
of agricultural fields combines with a high rural population density into endemic hunger and
malnutrition. Insecure access to land, poor management of natural resources and poor market
linkages combine to keep the Malawian smallholder where she or he is: At the brink of hunger. Food
distribution during deficit periods is a recurring phenomenon in rural Malawi. Livelihoods are
vulnerable to economic or other shocks. In early 2015 high rainfall – exceptional, but consistent with
predictions in the climate change scenarios – caused massive floods and crop failure; and
necessitated yet another food distribution campaign.
3. Rural Malawians are strapped for cash, and a smallholder’s goal to carry over a balance
income from one crop cycle to invest in the next competes with the need to feed her or his household.
The surplus from the sale of agricultural produce is marginal, as farmers are often forced to sell at a
low price due to their incapacity to store, their lack of knowledge on quality determinants (e.g. grading)
and the many small traders that stand between the farmer and the market demand. A fall in prices for
agricultural produce is as much a ‘shock’ to rural livelihoods, as are weather extremes.
4. Smallholder agriculture stagnates due to uncertain land access, low land productivity and poor
market access:
Access to ‘customary’ land is often contested between relatives, whereas sub-letting is largely
confined to seasonal leases; and biased to those who pay in advance;
Existing land is over-farmed due to high population pressure and low input use; while new lands
are located on increasingly marginal soils. Most land is rain-fed and produces at best two crops,
with a high risk of failure due to prolonged dry spells;
Input and product markets place smallholders at a disadvantage. Though unmet demands exist
at national level, lack of knowledge and a need for cash compels farmers to sell at low prices;
which in turn leaves little surplus, if any, for investment.
5. The Government of Malawi (GOM) is committed to address rural poverty through agricultural
growth. The Malawi Growth and Development Strategy (MGDS II) defines water development as a
key strategic area and emphasises infrastructure development. The 2012 Economic Recovery Plan
(ERP) further enhanced the emphasis on investment in irrigated agriculture. Recently, the Irrigation
Master Plan & Investment Portfolio (IMPIF) has been drafted, which provides a pipeline of feasible
investments in smallholder irrigation. Viable approaches for irrigation management and for land
consolidation for irrigation development have been developed and tested through the Irrigation, Rural
Livelihoods and Agricultural Development Project (IRLADP), which was IFAD co-funded. Projects,
programmes and activities aimed at agricultural growth coordinate their inputs and approaches
1 Composition of the 2
nd final design mission, March/April 2015: Mr Kees Blok, Mission Team Leader and Rural
Development Expert; Mr Jelle Tas, Rural Development Economist; Mr Guido Rutten, Irrigation Development Expert; Ms
Sophieke Kappers, Market Development Expert. Mr Thomas Rath, Country Programme Manager, IFAD-ESA briefed
and supervised the Mission from IFAD headquarters in Rome.
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through the Agriculture Sector Wide Approach (ASWAp), which is set-up by the Ministry of Agriculture,
Irrigation and Water Development (MOAIWD).
6. In 2013 the Government of Malawi (GOM) requested IFAD – during the mid-term review of
IFAD’s Country Strategic Opportunities Programme (COSOP 2010 - 2015) – to prioritise and assist in
the design of a water management programme aimed at smallholder agriculture. With the support of a
national Project Design Group, IFAD undertook a series of design missions during 2014 and 2015,
which resulted in the formulation of the Programme for Rural Irrigation Development (PRIDE).
7. Given IFAD’s track in irrigation development, climate-smart agriculture and value chain
development; and its comparative advantage in funding climate-resilient investment in soil and water
management and climate smart agriculture, IFAD is well placed to support the Programme for Rural
Irrigation Development. PRIDE builds on lessons learned in the Irrigation, Rural Livelihoods and
Agricultural Development Project (IRLADP) and incorporates lessons learned and experiences of the
Rural Livelihoods Economic Enhancement Programme (RLEEP – market linkages) and the
Sustainable Agricultural Production Programme (SAPP – good agricultural practices), which are both
part of the IFAD country portfolio.
Programme Description
8. PRIDE intends to contribute to the resilience of smallholder communities. Its goal is to reduce
vulnerability to food insecurity, to climate change effects and to the vagaries of the market. The
Programme Development Objectives is to enable smallholder farmers to sustainably enhance their
production levels to such a degree that they can provide for their household nutritional demands and
deliver produce to viable markets. PRIDE does so by providing smallholder farm households a
combination of (i) irrigation and soil- and water conservation infrastructure; (ii) promotion of good
agricultural practices; and (iii) linkage to improved value chains.
9. PRIDE’s will engage in approximately 15 scheme cluster areas, each comprising a to-be-
developed irrigation command and the rain-fed lands of concerned villages. By selecting viable
irrigation investment opportunities from Malawi’s irrigation investment portfolio (IMPIF, see above), the
Programme’s start-up time is significantly reduced. The pre-selected scheme cluster areas are
concentrated in two regional hubs, in respectively the north and the south of the country. In order to
address rain-fed and irrigated elements of the farming system PRIDE will engage with the villages
clustered around the irrigation schemes earmarked for the Programme. The selected areas would
include some 5,200 hectares of irrigated land, and 12,300 hectares of rain-fed land. An estimated
19,500 smallholder households live in the Programme area, of which a total of 17,500 households
representing 87,500 persons are assumed to directly benefit form PRIDE’s interventions. PRIDE will
focus on targeting poor households, women and female-headed households and youth.
10. PRIDE comprises two components: one aiming for irrigation development and catchment
management; and a second one developing agriculture and market linkages. Establishment of
infrastructure and farming systems that enhance resilience of scheme cluster areas to climate shocks
and -risks will be supported by the dedicated IFAD Adaptation for Smallholder Agriculture Programme
(ASAP), and builds on lessons gained through this programme in sub-Saharan Africa.
11. Component 1 – Irrigation Development & Catchment Management. This component aims
to develop resilient land and water management systems for smallholder households on both rain-fed
and irrigated lands.
12. The Programme starts from a pre-selection of viable irrigation schemes. A preparatory phase
will be used to update the information in the available studies; to conduct complementary work,
especially related to social and environmental due diligence; and to step-up the interaction between
the Programme and the beneficiary communities. At entry, the Programme will engage with existing
leadership (chiefs and village development committees) and their help will be sought to give shape to
direct interaction with the intended beneficiaries. A process of formation of a Water Users’ Association
will be initiated and supported. In parallel, agreements on scheme construction and hand-over; and on
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equitable access to land resources will be developed. The WUA will have long-term access to the
irrigated land, and will be charged with sub-letting land to their membership. Investments to combat or
prevent land degradation will be developed with and subsequently managed by conservation groups.
During this stage, the communities will also be asked to identify lead farmers and form the Farmer
Field Schools and Farmer Business Schools that will be supported through component 2.
13. PRIDE will cooperate with the Global Land Tools Network through their partnership with IFAD
under the regional ‘Tenure security learning initiative’ to help monitor the Land and Water Agreements
drawn up under PRIDE and to help monitor how land access develops over the years and how – if at
all – it affects agricultural practices, such as conservation agriculture and use of fertiliser.
14. The unit costs of irrigation development in Malawi are usually relatively high. In order to
stimulate market partners in scheme development to establish cost-effective user-managed medium-
sized irrigation systems; PRIDE will include a trial on one larger scheme with an integrated Design –
Build – Transfer contract. PRIDE’s procurement specialist and technical experts will develop, with
inputs from the concerned department and market partners – contract incentives which promote
efficient use of water resources and capable irrigation management.
15. The Programme will invest in measures to address urgent environmental degradation risks in
the scheme cluster areas. Investments could cover measures such as gully plugging, reforestation
and/or ground cover, fencing-off of vulnerable lands, delineation of buffer zones and construction of
bunds. The management of such infrastructure should generate local benefits (i.e. plantation of dual-
purpose trees, re-greening with grasses suited for cut-and-carry systems). Investments in
infrastructure to reduce environmental degradation helps smallholder agriculture adapt to climate
change impacts; and contributes – together with good agricultural practices promoted under
component 2 – to sustainable land management practices.
16. Component 2 – Agriculture and Market Linkages. This component aims to develop
environmentally and economically sustainable agricultural production systems managed by
smallholder households on both rain-fed and irrigated lands. Attention will be paid to both production
for nutrition and to linking production to market demands. Introduction of good agricultural practices
for rain-fed maize, legumes and irrigated vegetable production will help bolster local nutrition levels,
whereas production and marketing support for potatoes, legumes, rice and green maize would enable
farm households to generate significant higher incomes. PRIDE support will reflect regional variation
in the choice of crops and value chains.
17. The Programme will disseminate climate-smart Good Agricultural Practices (GAPs), including
a/o the use of weather and climate information services, conservation agriculture in rainfed land,
sustainable water and soil management, optimised irrigation scheduling and post-harvest
management. Emphasis will be given to off-the-shelf technology and resources will be earmarked for
adaptive research and on-farm demonstration. Extension of GAPs will take place through combining
the Farmer Field School and lead farmer approaches, currently being implemented under SAPP in
Malawi. Lead farmers will benefit from the provision of demonstration packages and from training to
build their knowledge of different GAPS and their skill in extension and communication. In return, the
lead farmers will be asked to form Farmer Field Schools (FFS) comprising representatives from
twenty households each. Through the FFSs, selected graduating farmers with technical capacities,
trusted by their peers and leadership characteristics will form the new lead farmers (facilitators) and
establish their new FFS farmers group. FFSs should have a clear curricula designed for specific
crops/GAPs that is jointly developed by extension, research and the FFS specialists. FAO – Malawi
has offered to assist PRIDE and also the ongoing SAPP in developing the FFS curricula and
implementation arrangements.
18. The Programme will make use of MOAIWD research and extension services and personnel, but
coverage will be enhanced by engaging additional and specialised service providers. Investments will
be made in information technology to enhance the effectiveness of services; and in facilities to make
best possible use of female agricultural and irrigation extension workers. `
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19. PRIDE will train Farmer Business Schools and will support the formation of producer groups.
The first will build the smallholders’ understanding of potential cash crops, their production costs and
the markets; whereas Producer Groups enable participating farmers to develop economies of scale
for bulking, processing, transport and marketing of their produce. The community focus will be
complemented by rendering support to existing and new commodity platforms. Here representatives
of input suppliers, buyers, wholesalers, processors, NGOs, micro-financiers, government agencies
and producers engage to revise the value chain for a specific agricultural commodity.
20. PRIDE will support the Malawi Innovation Challenge Fund managed by UNDP to open an
irrigation window with private sector engagement. The aim is to attract and promote a consortium of
wholesalers and equipment suppliers to engage in on-farm irrigation technology improvements. This
creates opportunities, such as larger production volumes; improved quality of produce and the
possibility to cultivate specific crops under optimised conditions in an irrigated block.
21. PRIDE will promote mainstreaming nutrition under its activities. Besides, a dedicated sub-
component will offer training to households for awareness on diversified and better nutrition. The aim
is to concretely improve nutritional status in farming families and foremost, reduce levels of child
wasting. In addition, the fuelwood stoves will be introduced widely to reduce workload of women to
free up time for more remunerative or social activities (social benefits), reduce smoke in the house
(health benefit), reduce GHG (environmental and climate benefits).
Programme Implementation
22. Programme Oversight. The Ministry of Finance, Economic Planning and Development will
formally represent the GOM on matters pertaining to the Programme. The Ministry of Agriculture,
Irrigation and Water Development will be the lead Ministry for the Programme. Day-to-day oversight
will be vested in the Department of Irrigation, while a Technical Advisory Team will be established
representing departments concerned with project implementation, including Land Resources,
Extension, Research (under MOAIWD), as well as the Department of Land (Ministry of Lands,
Housing and Urban Development), the Environmental Affairs Department (Ministry of Natural
Resources, Environment and Mining); the Debt and Aid Department of the Ministry of Finance,
Economic Planning and Development; and others as needed. Strategic oversight will be provided by a
Programme Steering Committee (PSC) comprising senior representatives of concerned Ministries,
under the chairmanship of the PS (Irrigation & Water Development) of MOAIWD. IFAD will undertake
half-yearly supervision missions; and a provision is made for implementation support missions.
23. Programme Management. In view of the limited implementation capacity of the Government,
and the positive experience in IRLADP with a dedicated unit for management, the Programme will be
implemented by a stand-alone Programme Coordination Office (PCO) established under the lead
Ministry and staffed by dedicated and highly qualified personnel who are recruited from government or
from the labour market. The PCO will carry out its daily work under a designated authority.
Recruitment of key PCO staff requires prior consent from IFAD. The PCO will include a senior
Programme Director, a Procurement specialist, a Financial Management specialist, a WUA specialist,
an Environmental Coordinator, a Gender and Targeting specialist, an Irrigation Engineer, an
Agronomist, a Value Chain Specialist and a Planning, Monitoring and Evaluation specialist. Given the
spread to the northern and southern regions, there will be two facilitation offices staffed by one
Coordinator and Assistant Coordinator each to support the PCO’s technical staff in Lilongwe.
24. Social and Environmental Safeguards. With respect to potential social and environmental
impacts, the programme is classified in Category A; i.e. the highest risk category. To ensure that the
required social and environmental safeguards are in place, PRIDE’s design has followed the most
recent IFAD Social, Environment, Climate Assessment Procedures (SECAP).
25. An Environmental and Social Management Framework and a Resettlement Action Framework
are developed to guide how the programme addresses negative impacts through inclusion of
mitigation measures. The procedure includes scoping of each sub-scheme, full Environmental and
Social Impact Assessments where needed, and the inclusion of Environmental and Social
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Management Plans (including where needed resettlement) on each sub-scheme. The framework is in
line with both IFAD and GoM standard procedures and includes an annual audit of all environmental
and social safeguard activities.
26. Planning, monitoring and evaluation. A robust management information system needs to be
set-up. Baseline, mid-term and completion surveys will collect data on Programme impact, whereas
Programme records will provide data on implementation progress. Additional data will be collected on
the risks potentially affecting the Programme. The multi-dimensional poverty assessment tool (MPAT)
will be incorporated to assess the Programmes impact, alongside IFAD Results and Impact
Management System (RIMS). Data will be disaggregated for gender, age and wealth class to better
understand the effectiveness of targeting. Several specific studies will be undertaken to collect
focussed information on a/o dynamics of land access, emerging irrigation practices, value chains and
markets.
27. Knowledge management is an important mechanism for the Programme, aimed to engender
continuous improvement in approaches and policies for the development of smallholder agriculture
and irrigated agriculture. PRIDE will develop factsheets and technical reports on lessons learned;
organise regular workshops with stakeholders and disseminate project information and lessons learnt
using websites, publications, focussed meetings and horizontal learning mechanisms. Institutional
learning shall be aimed at farmer groups; district staff and service providers and national agencies.
28. The PCO is responsible for mobilising adequate services to implement the Programme in the
scheme cluster areas. This is done by supporting service delivery by decentralised government
agencies, such as the irrigation and extension services and the land records office. In addition, the
PCO will assign non-government / private agencies to render specialised services (e.g. irrigation
design, construction, improved cooking stoves) or additional services in cases where government
agencies lack sufficient staff.
29. The decentralised agencies involved in the Programme will be assisted to establish an
implementation team to coordinate support to each scheme cluster area. The existing leadership in
the scheme cluster areas will be assisted in forming beneficiary organisations, ranging from Water
Users’ Organisations to Farmer Field Schools, to take part in the Programme.
30. Risks. The Programme design is based on several assumptions, which form risks to the
success of the Programme. The design includes mitigation measures to contain these risks and the
approach to planning, monitoring & evaluation pays due attention to reviewing these risks:
Implementation readiness – The well-known risk of slow start-up is countered by establishing
a stand-alone dedicated PCO, by building on the IMPIF-portfolio and by taking on board
experiences from SAPP and RLEEP. In addition, GOM has indicated that it would like to use
the start-up funds of IFAD to set up the PCO and recruit core staff upon signing the financing
agreement to prepare a PIM, AWPB, procurement documents and the accounting system.
GOM capacities – the inability of GOM to fulfil all vacancies in its extension services
jeopardises the implementation pace. PRIDE therefore mobilises both government services and
additional service providers. Moreover, a dedicated PCO with designated authority will
coordinate the programme activities, under the oversight of the Government. This arrangement
is critical as shown by the performance of SAPP as a negative example, while a positive
example refers to all well running programmes/ project such as IRLADP, RLEEP and RLSP.
Inclusiveness – If PRIDE does not succeed engaging women and youth, the effect (enhanced
production for nutrition and markets) and impact (resilience of rural communities) of the
Programme will be limited. PRIDE involves community leadership in targeting, monitors the
outcomes and takes remedial measures, if needed. Specific attention is given to facilitate the
work of female extension workers. Attention to ICT and mechanisation is expected to attract
young farmers.
Availability of rural financial services – Given present availability of rural finance options, the
risk of smallholder farmers not being able to take part in opportunities offered by PRIDE is
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modest. The risk is further mitigated by farmers not having to contribute cash to irrigation
development; and by the use of demonstration packages for the introduction of GAPs.
Catchment management – upstream processes may affect the long-term sustainability of
investments in the scheme cluster areas. Direct threats to the structural integrity of the irrigation
schemes can be addressed using the funds reserved under component 1; and GOM is setting
up the knowledge base, the policies and the structures for catchment management.
Unit costs for irrigation development – A tendency for high per unit investments is observed
in a number of completed schemes but the present unit costs, based on the irrigation portfolio –
appear reasonable. Strict supervision will help control the use of cost variation orders, and a
pilot for an integrated Build – Design – Transfer (BDT) contract would help provide better
incentives for a prudent per hectare cost for irrigation development.
Delayed registration of farmer organisations – The PRIDE design has brought the
registration of WUAs forward to the initial stages of the programme; thereby ensuring adequate
time for the registration, and for the lead Ministry to pursue this. The experience of IRLADP
provides good reference to speed-up WUA registration.
Extreme events – Extreme weather may seriously undermine the sustainability of land and
water management infrastructure. Designs will be made climate change compliant. Regular
maintenance by the WUAs (and reviewed annually by the Programme) reduces vulnerability of
irrigation systems. Finally, it is assumed that GOM – with help from its development partners –
is able to finance future major rehabilitations of irrigation infrastructure damaged by extreme
events.
Long-term land access – Land access on customary land is intrinsically insecure. At scheme
development, use is made of tested procedures for providing smallholder farmers equitable
access to land. Such land agreements are subject to free, prior and informed consent by
affected parties; and include proper compensation for any loss of land use, shelter or
livelihoods resulting from irrigation development. PRIDE uses procedures to develop land
agreements, which have proven successful in IRLADP. The programme furthermore includes
tracer studies on land access, which will be undertaken with support from the Global Land
Tools Network. In addition, GOM is processing a new Land Bill, which provides conditions for
enhanced security of land access on lands that presently have a customary title.
Local livelihood improvements – indicators for poverty reduction will rapidly improve if
Programme benefits are used locally, but they will stagnate if households opt to invest in long-
term development opportunities associated with higher education and searching employment
elsewhere. The Programme, through its nutrition sub-component, promotes enhancing the
nutritional intake of the household members.
Programme cost, financing, benefits and sustainability
31. Total Programme costs including price and physical contingencies, duties and taxes are
estimated at USD 84 million over the seven years of Programme implementation. Of this, about USD
23 million (27%) represents the foreign exchange component, and USD 13 million (15.9%) are duties
and taxes. Total base costs amount to USD 77.1 million, while physical and price contingencies are
estimated at USD 6.8 million (8.8% of the base costs). Investment costs account for 86% of the base
costs; and recurrent costs for the remaining 14%.
32. Programme investments are organized into three cost components: (i) Irrigation development
and catchment management; (ii) Agriculture and market linkages; and (iii) Programme management.
Programme management and coordination costs are about USD 8.1 million or 9.7% of the total. A
summary breakdown of the Programme costs by component and sub-component is shown in the
table.
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Project Components by Year -- Totals Including Contingencies
(USD '000)
Totals Including Contingencies
2016 2017 2018 2019 2020 2021 2022 Total
A. Irrigation development and catchment management
1. Land and w ater governance 767 316 778 317 689 339 105 3,311
2. Irrigation system development 2,241 9,929 12,463 10,766 6,268 5,471 1,021 48,159
3. Soil and w ater conservation 184 395 345 411 359 427 128 2,248
Subtotal 3,192 10,639 13,586 11,493 7,316 6,237 1,254 53,718
B. Agriculture for irrigation and rain-fed systems
1. Improved agricultural practices 927 1,327 1,292 1,242 1,179 1,089 341 7,397
2. Market linkages 1,431 1,630 1,760 1,083 534 451 268 7,159
3. Community Innovations 514 2,870 2,862 113 1 1 - 6,362
Subtotal 2,872 5,827 5,914 2,438 1,715 1,541 609 20,918
C. Programme management and coordination
1. Know ledge Management, Planning and M&E 193 120 120 223 125 129 278 1,187
2. Programme coordination 1,464 1,087 1,109 1,122 1,551 1,132 663 8,127
Subtotal 1,657 1,206 1,228 1,345 1,676 1,261 941 9,314
Total PROJECT COSTS 7,721 17,673 20,729 15,277 10,706 9,040 2,805 83,950
33. PRIDE is to be financed by GOM, IFAD (loan and grant), ASAP grant through IFAD,
UNDP/DFID, the private sector and beneficiaries. The IFAD loan finances 31.5% (USD 26.5 million) of
the programme costs; of which half (USD 26.5 million) will be a loan at IFAD highly concessional
terms and half (USD 26.5 million) a grant under the Debt Sustainability Framework (DSF). ASAP will
finance 8.4% (USD 7 million). The loan is on highly concessionary terms including a 40-years maturity
period, a 10-years grace period; and a 0.75% annual service charge. The government will finance the
taxes and duties (USD 13.2 million, 15.7%). Beneficiaries will contribute USD 7.2 million (in kind)
representing about 8.7% of the Programme costs.
34. To help GoM ensure a swift programme mobilisation, a start-up financing facility of a total of
USD 520,000 for specified cost categories, is available for the period between entry into force
(signing) and the moment when the conditions for first withdrawal are satisfied.
35. The economic rationale for PRIDE is based on improved agricultural productivity and reduction
of post-harvest losses in both rain-fed and combined rain-fed & irrigated farming systems as a result
of the application of Good Agricultural Practices; increased cropping intensities and high value crop
cultivation on irrigated lands.
36. The economic analysis of the Programme indicates that PRIDE is robust in economic terms.
The overall Economic Internal Rate of Return (EIRR) of the Programme is estimated at 20% (base
case) which is above the opportunity cost of capital in Malawi. The EIRR is estimated based on the
assumption that 80% of target farmers will adopt the GAP technology packages promoted by the
Programme and 90% would be engaged in farming of irrigated land.
37. The Net Present Value (NPV) is USD 29 million over the 20-year period of analysis, with the
benefit stream based on the quantifiable benefits that relate directly to the activities undertaken
following implementation of the components. These figures are considered reasonable given that
benefits of the Irrigation window in the Malawi Innovation Challenge Fund and of the improved
cooking stoves have not been factored in. More detail of the Programme economic and financial
analysis is included in appendix 10.
38. Sustainability. Several mechanisms incorporated into the Programme design aim to help
continue the benefit stream beyond the programme’s 7-year implementation period, and beyond the
economic lifetime of the infrastructure introduced by the Programme. The mechanisms for long-term
sustainability include consultative planning, land consolidation, farmer-managed irrigation, community
natural resource management, farmer-led innovation, linkage to market partners and sector-wide
knowledge management. PRIDE aims to transform smallholder farming within an intervention area
limited to about 15 medium-sized irrigation schemes, including surrounding rain-fed lands. Irrigation
infrastructure, climate-smart agricultural practices and market linkages are the ‘game-changers’ that
help institute this transformation. Sharing of experiences within the smallholder agriculture sector will
contribute to scaling-up the approach to other areas with irrigation potential.
Republic of Malawi
Programme for Rural Irrigation Development
Design completion report
xv
Summary tables of the Economic and Financial Analysis
Table A
Beans Onions Irish Potato Tomato Cabbage Farm 1 Farm 2
PY125,722- 44,113- 61,561- - - - - 36,770- 55,961-
PY24,487- 15,599- 37,904- 181,105- 707,336- 174,889- 229,685- 66,106- 60,679
PY3 14,678 30,024 23,710- 403,124 152,372- 20,242- 7,503 19,328- 198,257
PY430,249 80,210 37,127 987,353 929,807 132,903 157,427 53,874 391,428
PY540,900 100,740 55,415 1,685,888 1,623,512 403,159 361,117 101,709 549,918
PY640,900 100,740 55,415 2,088,075 2,622,447 538,287 503,803 150,772 698,696
PY7 40,900 100,740 55,415 2,088,075 2,622,447 538,287 503,803 150,772 698,696
PY840,900 100,740 55,415 2,088,075 2,622,447 538,287 503,803 150,772 698,696
PY940,900 100,740 55,415 2,088,075 2,622,447 538,287 503,803 150,772 698,696
PY1040,900 100,740 55,415 2,088,075 2,622,447 538,287 503,803 150,772 698,696
109,995 283,743 66,328 5,997,705 6,568,232 1,260,435 1,157,695 301,060 2,129,467
250 645 151 13,631 14,928 2,865 2,631 684 4,840
60% 71% 24% 323% 105% 88% 77% 49% 227%
NPV (Mk)
NPV (US$)
FIRR (@12%)
F
I
N
A
N
C
I
A
L
A
N
A
L
Y
S
I
S
Crop Models Farm Models
Crop Models Incremental Benefits (Mk)Farm Models
Incremental Benefits
Table C
FINANCIA
L
MAIN ASSUMPTIONS & SHADOW PRICES1
Output Av. Incremental Price (Mk/kg) Input prices Price (Mk)
Seeds (per Kg) 681
Farmyard manure (per ton) 2000
Basal fertilizer (per kg) 320
Top dress fertilizer (per Kg) 300
Herbicides (per Kg) 7000
Insecticides (per litre) 2200
Fungicide (per Kg) 3500
Gypsum (kg) 400
ECONOM
IC
Official Exchange rate (OER) Discount rate (opportunity cost of capital)
Irish Potato 209% 240
Tomato 125% 760FINANCIA
L
Cabbage NO WOP 200
Beans 30% 350
Onions 153% 600
Output Av. Incremental Price (Mk/kg) Input prices
Maize 88% 80
Groundnut 125% 350
440 12%
396 12%
0.9 0.9
0.65 1.06ECONOM
IC
Official Exchange rate (OER) Discount rate (opportunity cost of capital)
Shadow Exchange rate (SER) Social Discount rate
Standard Conversion Factor Output conversion factor (average)
Shadow Wage Rate Factor (SWRF) Input Conversion factor (average)
Table D
Items Target HH Y 1 Y 2 Y 3 Y 4 Y 5 Y6 Y7 Total
FARM 1 rain-fed only 2000
Adoption rate 80% 5% 20% 20% 20% 10% 5% 5%
No. of HH 1600 80 320 320 320 160 80 80 1,360
Cummulative no. of HH 320 640 960 1280 1440 1520 1600 7760
FARM 2 rain- fed & irrigation 17500
Lot 1 in ha 439 1033 725 2197
Lot 2 in ha 397 1192 397 1986
Lot 3 in ha 191 572 191 954
Total 439 1033 1122 1192 588 572 191 5137
adoption rate 90% 5,137
no. of HH/a 15750 1,362 3,206 3,482 3,699 1,825 1,775 593 15,942
cummulative no. of HH 1,362 4,568 8,050 11,750 13,574 15,350 15,942
Total no. of HH 1,442 3,526 3,802 4,019 1,985 1,855 673 17,302
Total cummulative no. of HH 17350 1,442 4,968 8,770 12,790 14,774 16,630 17,302
Beneficiaries, Adoption Rate, Phasing in
Republic of Malawi
Programme for Rural Irrigation Development
Design completion report
xvi
Table E
NET
INCREMENT
AL BENEFITS
PY1 -195 4,635 1,186 5,821 -6,016
PY2 -445 11,953 1,320 13,273 -13,717PY3 -54 13,926 1,309 15,235 -15,289PY4 1,443 9,325 1,285 10,610 -9,166
PY5 4,540 6,007 1,246 7,253 -2,713PY6 8,563 4,812 1,192 6,004 2,559
PY7 12,964 1,249 551 1,800 11,164
PY8 16,626 0 551 551 16,075
PY9 19,275 0 551 551 18,724
PY10 20,674 0 551 551 20,123
PY11 21,421 0 551 551 20,870
PY12 21,609 0 551 551 21,058
PY13 21,609 0 551 551 21,058
PY14 21,609 0 551 551 21,058
PY15 21,609 0 551 551 21,058
PY16 21,609 0 551 551 21,058
PY17 21,609 0 551 551 21,058
PY18 21,609 0 551 551 21,058
PY19 21,609 0 551 551 21,058
PY20 21,609 0 551 551 21,058
29,770
NPV@12 % (Mk '000 ) 13,098,790
20.0%
NPV@12% (USD '000)
EIRR
E
C
O
N
O
M
I
C
A
N
A
L
Y
S
I
S
NET INCREMENTAL COSTS
Cash
Flow
(USD
'000)
Total
Incremental
Benefits
(USD'000)
Economic
Investment
Costs
(USD'000)
Economic
Recurrent
Costs
(USD'000)
Total
Increment
al Costs
Table F
?% IRR (%)NPV (USD
M)
20% 29,755
-10% 18%22,484
-20% 16%15,214
-50% 10% 6,599-
10% 22%37,026
Project benefits 20% 23%44,297
Project costs 10% 18%25,460
20% 17% 21,165
50% 14%8,279
17%19,965
15%11,224
1 year lag in ben.
SENSITIVITY ANALYSIS (SA)
Link with the risk matrix
Base scenario
Project benefits
Low implementation readiness and GoM capacity hamper start-up of
Programme; allocation of land resources, registration of WUAs and
extreme events delays implementation progress; achievement of
inclusiveness and local l ivelihood improvements takes longer than
foreseen. 2 years lag in ben.
Availability of rural financial services more costly than foreseen;
Extreme events affecting market prices.
Project benefits
Project benefits
Project benefits
Inadequate funds reserved for catchment management; unit cost for
irrigation development higher than foreseen; cost for climate-proof
(extremen events) infrastructure higher than foreseen.Project costs
Project costs
Republic of Malawi
Programme for Rural Irrigation Development
Design completion report
xvii
Logical Framework
Indicators marked with by * will be disaggregated according to target group category, gender and age cohort (18 – 35, over 35)
TBD: To be determined by programme studies (i.e. baseline, tracer studies, mid-term and completion surveys)
Results Hierarchy Key Performance Indicators
Means of Verification
Assumptions
Goal Name Baseline End Target Source Frequency Responsibility
Rural communities are
resilient to food
insecurity-, climate
change2 and economic
risks
Reduction in child malnutrition, measured by the incidence of wasting (RIMS level III)
Improvement in household assets ownership index (RIMS Level III)*
Smallholder households supported in coping with the effects of climate change (RIMS 1.8.5) measured by the number of households applying climate-smart agricultural practices*
Tbd 20% reduction
15,000 households with a 20% improvement
17,000 smallholder households
Baseline surveys and RIMS surveys, MPAT surveys
Same
Programme records
Project start, mid-term and completion
same
Semi -annually
PCO/DOI
Project Development Objective:
Smallholder farmer
households enhance
income and nutrition
through sustainable
agricultural production
Smallholder farmer households receiving project services (RIMS 1.8.1), differentiated by gender of the household and wealth class
Smallholder farmers with increased income of 3 fold (rainfed only) and 8 fold (irrigation/rainfed)*
Smallholder households reporting decreased incidence of hunger periods, measured by number of meals per day and by increased dietary diversity *
Nil
tbd
Nil
17,000 smallholder farmer households
11,000 smallholder farmers
17,000 smallholder households
Programme progress reports
Baseline surveys and RIMS surveys, MPAT surveys
same
Semi-annual
Every 2 years
same
PCO/DOI No major impact of climate shocks ; Policies remain conducive to agriculture; Market prices remain favourable or at least stable;
Outcome 1:
Smallholder
households
sustainably operate
climate-resilient land
Effectiveness: farmers with secured access to land and water (RIMS 2.1.2)
Incremental hectares of crops in irrigated land throughout seasons.
Nil
Nil
15,700 farmers
5,200 ha
Tracer studies on land and water access
land use survey
year 3, 5, 7
PCO/DOI Allocation of land and water to smallholder farmers is secured and reliable over longer periods
2 In PRIDE, resilience to effects of climate change will be measured by households having access to irrigated land, cultivate at least 3 different crops (diversification) and apply good
agriculture practise including soil improvement techniques.
Republic of Malawi
Programme for Rural Irrigation Development
Design completion report
xviii
and water
management systems
on both rain-fed and
irrigated lands (refers
to ASAP outcome #1)
Outputs:
1.1 Communities
effectively
manage their land
and water
management
systems
WUA managing infrastructure formed or strengthened (RIMS 1.1.2)
nil
15 WUA
WUA records / tracer study land tenure
annually
PCO/DOI
Registration of 15 Water Users’ Associations is facilitated by the concerned agency Government is able to assist WUAs affected by extreme events in recovering their system’s functionality
1.2 Medium-sized
irrigation systems
(50-1000 ha)
established
Land under irrigation from rehabilitated or newly constructed schemes (RIMS 1.1.5)
Land consolidation and tenure arrangements completed
Nil
Nil
5,200 ha
5,200 ha
Annual land use survey
WUA records / tracer study land tenure
Upon hand over of complete scheme
PCO/DOI No major delays / implementation bottlenecks Unit costs are kept within USD 7,800 per hectare
1.3 Erosion-affected
and vulnerable
rain-fed land
recovered
Extent of land with rehabilitated or restored ecosystem services (RIMS 1.1.17)
Nil 1,000 ha Annual land use survey
Upon hand over of complete scheme
PCO/DOI GOM policies re catchment natural resources benefit the scheme cluster areas
Outcome 2:
Environmentally and
economically
sustainable
agricultural production
systems adopted by
smallholder
households on both
rain-fed and irrigated
lands
Farmers report yield increase (> 20% above baseline) from improved rainfed agricultural production (RIMS 2.2.2)*
Farmers report adoption of recommended climate smart Good Agricultural Practices
Baseline
Baseline
17,000 farmers
17,000 farmers
HH sample surveys
Every 2 years
PCO/DOI
Access to financial services and revenues from / services of markets enable intensification of smallholder agriculture
Republic of Malawi
Programme for Rural Irrigation Development
Design completion report
xix
Outputs:
2.1 Smallholder
farmers trained on
good agricultural
practices on rain-
fed and irrigated
land
People trained in crop production practices and technologies (RIMS 1.2.2) specified for lead farmers and FSS attendants*
Nil
780 lead farmers and 15,000 FFS members
Programme reports
Semi-annually
PCO/MOAIWD
GOM capacity can be complemented by mobilisation of private sector service providers
2.2 Smallholder
farmers linked to
improved markets
Smallholder farmers trained in production, post –production, processing and marketing (RIMS 1.4.1) *
Nil 17,500 farmers Programme reports
MICF reports
Semi-annually PCO/DOI PRIDE successfully engages all target group segments in programme activities
2.3 Smallholder
households
improve nutritional
intake
Women trained in preparation of
nutritious meals in 2 seasons*
Nil 15,000 women Programme reports
Semi-annually PCIO/DOI PRIDE successfully includes women and youth in leading roles in WUAs , FFS etc
Republic of Malawi
Programme for Rural Irrigation Development
Design completion report
1
I. Strategic context and rationale
A. Country and rural development context
1. Malawi is a densely populated landlocked country of about 15 million people in an area of
118,484 km2, of which 24,000 km
2 is fresh water. Population growth is almost 3% per annum and the
country has one of the lowest per capita GDPs in the world. With a human development index of
0.414, Malawi is ranked 174th out of 187 countries (2014), while for its gender development index it
ranked 116th out of 208 countries (2013). The third Integrated Household Survey (IHS3, 2011)
estimates that 51% of the population lives below poverty line with 25% being ultra-poor.
2. The socio-economic challenges remain formidable. The ability to maintain a level of economic
growth to ensure poverty reduction remains limited by: (i) the narrow economic base; (ii) the small and
low value domestic market; (iii) poor infrastructure and high transport costs; (iv) erratic power supply
and heavy reliance on fuel imports; (v) poorly developed business sector; (vi) Government
intervention in key market sectors; and (vii) weak institutional management capacity in the public and
private sectors. Education levels and productivity are low. Because of the predominance of rain-fed
agriculture the country is extremely vulnerable to climate shocks, particularly drought. Present climate
change scenarios predict more erratic rain- and drought patterns. Inflation and high interest rates
remain a disincentive to investors. Chronic food insecurity and malnutrition, combined with HIV/AIDS
prevalence of 11.9% add to the challenges.
3. Malawi has a predominantly agricultural economy, with 80% of the population depending on
subsistence farming and exports reliant on the key cash crops – tobacco, tea, sugar and cotton. Real
GDP growth rates averaged less than 4% during the 1990s, and ranged from 2% to nearly 7% since
2002. The current account deficit of nearly 13% of GDP is financed by donor grants and development
credits. Malawi has limited access to alternative modes of external financing and has attracted little
foreign direct investment.
4. Rural Poverty. Approximately 76% of the population live below the income poverty line of USD
1.25/day and 90% below the USD 2.0/day threshold. The proportion of poor and ultra-poor is highest
in rural areas of the southern and northern regions. Over 85% of the poor live in rural areas (NSO
2008). Rural areas have a higher proportion of both stunted and underweight children, 36% and 18%
respectively compared to urban areas with 31% and 12% respectively. The latest MDG Progress
Report on Malawi indicates mixed results in the country’s progress. Substantial reduction of hunger
and extreme poverty is expected, but achievement of universal primary education goal is unlikely.
5. The rural poor further incur high levels of malnutrition due to: (i) inadequate dietary intake;
(ii) low access to food in terms of quantity, quality and diversity due to inadequate food production or
low income; (iii) poor child feeding and care practices; (iv) low education and lack of knowledge in
food processing and utilisation; (v) poor access to quality health care services and sanitary amenities;
(vi) diseases; (vii) cultural beliefs which deny women and children consumption of high nutritive value
foods; and (viii) poor coordination by GOM of nutritional programmes within and between institutions.
About 38% of households (HH) earn their livelihood only from farming or fishing. Around 25% combine
work on their farm with other jobs, largely in agriculture. The recurrence of both economic and climatic
shocks frustrates attempts to escape rural poverty.
6. Rural poverty is characterised by:
Gender of Household Head. Women head about 25% of the households in Malawi and 63% are
poor, whereas only 49% of male-headed households are poor;
Household Composition. Average household size is 5.4 for the poor and 3.8 for the non-poor;
Education. Poverty is severe among people who live in households whose heads have no
formal education; and those with more than a junior certificate are less likely to live in poverty;
Republic of Malawi
Programme for Rural Irrigation Development
Design completion report
2
Land Holding Size. Average per HH is 0.7ha. Some 75% of the farmers cultivate less than
1.0ha, with 33% of male heads cultivating less than 0.5ha as compared to 50% of female HH
heads;
Access to Markets and Services. The poor live in remote areas with few roads and little means
of transport, which limits their economic opportunities and access to financial services;
Illness and Disability. Families affected by chronic debilitating diseases such as HIV/AIDS and
tuberculosis, both of which are accentuated by poor nutrition are poor or ultra- poor.
7. Women and Youth. In Malawi, women are more disadvantaged than men in many aspects of
life. The Gender Inequality index is 0.591 (2013); an indication that disparities exist between males
and females. Although women provide 70% of the labour force and produce 80% of food for home
consumption, they have little control over the produce and benefit less from the income earned.
Women also have limited access to agricultural markets due to lack of affordable transport,
appropriate marketing technologies and price negotiation skills. Men dominate in the commercial sub-
sector which gives them an economic advantage over women. Considering the role women play in
food production, there is scope to match their role with appropriate resources, decision-making space
and skills.
8. Youth faces considerable challenges mainly linked to lack of basic opportunities. There are few
employment opportunities outside agriculture in the rural areas while the ongoing fragmentation of
landholdings provides a bleak future in farming. Farming is associated with low cash income
generation, hard labour and low status. Many young people aspire regular employment, partaking in
urban life and working with mechanical or digital tools. The National Youth Policy, 2013 aims “to create
an enabling environment for all young people to develop to their full potential in order to contribute
significantly to personal and sustainable national development”.
9. Constraints and opportunities for agricultural and rural development. The agricultural
sector is important to economic growth and human welfare because it employs about 80% of the total
workforce (NSO, 2012) and accounts for 29% of GDP (GOM, 2013). The sector contributes
significantly to national and household food security (GOM, 2011). The sector is dualistic, comprising
smallholder and estate subsectors. More than 80% of the rural population are smallholder farmers
(SHF) with customary land tenure. They cultivate small and fragmented landholdings over
approximately 2.4 million hectares, with low yields, and are subsistence-oriented. Average landholding
size has fallen from 1.5 ha in 1968 to around 0.7 ha today.
10. The two main cropping systems are: maize mixed (covering 75% of cropland) and cereal-root
crop mixed in the south (15% of cropland). The original niche of smallholders was in the provision of
maize to feed estate and urban workers. In good rainfall years with favourable prices and access to
inputs, Malawi is able to produce around 3.0 million tonnes of maize, which is above the self-
sufficiency level. In poor seasons, many households are food insecure and malnutrition particularly in
the food deficit southern region.
11. Fishing employs around 250,000 people and accounts for 60-70% of the animal protein intake.
Livestock ownership is low with an average of 0.53 tropical livestock units per HH. Performance of the
livestock sector is affected by low productivity of the cropping sector. As cropping extends into grazing
areas, the number of ruminant livestock has decreased. Per capita meat consumption and animal
protein intake is low, contributing to poor nutrition among children. The fisheries and livestock sub-
sectors are opportunities for diversification of livelihoods and can enhance resilience to climate
change.
12. Despite availability of better technologies, the productivity of most crops has only shown
modest improvement because of: a) declining soil fertility and limited use of fertilisers prior to
introduction of the Farm Input Subsidy Programme (FISP); b) poor access to financial services and
markets; c) unfavourable weather; and d) small landholdings. Post-harvest losses are estimated at
30% of production for maize and higher for perishable commodities.
Republic of Malawi
Programme for Rural Irrigation Development
Design completion report
3
13. Over the last 20 years, droughts and prolonged dry spells have become more frequent resulting
in poor crop yields and, in some cases, total failure. Climate models predict a wetter regime for the
northern regions while the south will be drier with shorter and more intense rainfall periods. Intense
rains, as experienced in January 2015, lead to floods and accentuate land degradation. Based on
outcomes of studies in various catchments, soil loss is estimated to average a staggering 20
tonnes/ha/annum (see appendix 143). This contributes to a reduction in crop yields of 4% or more per
year. Appendix 2 on climate change adaptation and natural resource management provides further
analysis.
14. Less than 4% of cultivated land is under irrigation, and only half (47,531ha) of that is managed
by smallholder farmers. Major problems revolve around distribution of water and access to irrigated
land, canal repairs, mobilisation of labour for maintenance, and rules for resolving disputes. These
issues need to be addressed to expand the irrigation sub-sector.
15. The land access that smallholders enjoy is a granted right to a lineage, transferred through
either patrilineal or matrilineal systems depending on location. The right allows its holder to use
customary land. In addition smallholders may access land through sub-lease of the land of other right
holders. Land access ranges between these two, but generally a smallholder’s long-term access is
uncertain. The right to customary land is rarely taken back, but it has to be shared between relatives –
and is at times a source of conflict; while the practice of land leases is largely confined to seasonal
leases; and gives preference to those who can afford to pay in advance. Women face disadvantages
both in conflicts over land rights as well as in access to lease options. Land access under the
customary title is nowadays less certain; and it does not create favourable conditions for investment in
soil fertility, irrigation infrastructure and land levelling.
16. The private sector remains under-developed in rural areas and smallholder farmers are poorly
integrated in the marketing system. This is compounded by limited market infrastructure, poor quality
feeder roads, inadequate market information, a lack of skills and facilities in post-harvest storage and
agro-processing. Adverse climate accentuates the already poor transport infrastructure; heavy rains
and floods wash damage dirt and paved roads and bridges, rendering access to services in including
health, education and marketing services difficult for the rural population and services providers
(sellers/buyers). There is an urgent need to improve climate resilience of village and district roads.
17. Rural livelihoods in Malawi are in a state that is both precarious and stagnant. Low productivity
of agricultural fields combines with a high rural population density into endemic hunger and
malnutrition. Insecure access to land, poor management of natural resources and poor market
linkages combine to keep the Malawian smallholder where she or he is: At the brink of hunger, food
distribution during deficit periods is a recurring phenomenon in rural Malawi. To alleviate the risks of
failure of the staple crop, the government feels compelled to distribute subsidised packages of maize
seed and fertiliser, despite the big strain this puts on government resources.
18. Legislative and policy framework. Malawi currently faces a number of land governance
challenges (see para 15, above). The customary land tenure system is under pressure as some with
an allotment now live in cities; while the growing population compels others to compete for scarce
land resources. Access to land has become more insecure and this forms an obstacle to productive
land use and to investment in agriculture. Insecurity over rights, absence of low-cost mechanisms for
registration, and a non-functioning land administration system block private sector development and
the development of financial services. Although 25% of households are female headed, less than 15%
of land is registered in the name of women, either individually or jointly. Land use planning is mostly
absent. Many land tenure issues related to irrigation schemes require further attention. A Land Bill has
been prepared which addresses some of these issues but has not yet been legislated.
19. Irrigation development has been guided by the 2001 National Irrigation Policy (NIP). The NIP
was revised in 2014 and is based on the irrigation sector overall goal of contributing to sustainable
economic growth and development by enhancing irrigated agricultural production. Specifically, the NIP
3 Yaron, G. et al, Economic Valuation of Sustainable Natural Resource Use in Malawi, January 2011.
Republic of Malawi
Programme for Rural Irrigation Development
Design completion report
4
emphasises increasing the area under sustainable irrigation, extending cropping opportunities,
facilitating crop diversification, creating an enabling environment for irrigated agriculture, enhancing
capacity for irrigated agriculture and promoting a business culture in the small-scale irrigated sub-
sector. The GOM recently finalised the Irrigation Master Plan and Investment Framework (IMPIF),
which builds on these policies and strategies and is the main guiding strategy for PRIDE. The IMPIF
represents a move away from a fragmented approach to irrigation development towards a joint
approach, including a pipeline of investment options. The IMPIF has been developed in extensive
consultation with government stakeholders and development partners, including IFAD.
20. The National Adaptation Programme of Action (NAPA) includes as priorities: (i) sustaining
livelihoods; (ii) enhancing food security; and (iii) increasing the resilience of food production systems
under conditions of erratic rainfall. The Adaptation window of the National Climate Change Investment
Plan (NCCIP) aims amongst others at: (i) strengthening catchment area and soil and water
conservation management; and (ii) improving community resilience through agricultural production.
Although seventeen River Basin Authorities have been proposed to address soil and water resources
management, they are as yet not a reality on-the-ground. While this makes basin-wide resource
management for the moment a challenge, existing local institutions (including the irrigation Water
Users’ Associations that have been established in recent years) are able to help resolve issues related
to land and water use in sub-catchments.
21. The national agenda for agricultural development is reflected in the Compact between GOM
and its partners for the Comprehensive African Agricultural Development Programme (CAADP), and
further specified in the Malawi Growth and Development Strategy (MGDS I and II). The philosophy of
MGDS II is poverty reduction through sustainable economic growth and infrastructure development.
Water development is defined as a key strategic area. The economic shocks experienced in 2012, led
to a refocussing of national economic policies through the Economic Recovery Plan (ERP, 2012). This
placed more emphasis on investment in irrigated agriculture; as evidenced by the formulation of a
Green Belt Initiative (GBI). Central coordination of the many projects, programmes and activities
aimed at agricultural growth is provided by the Agriculture Sector Wide Approach (ASWAp).
B. Rationale
22. Vulnerability. The precarious state of subsistence that affects smallholder farmers in Malawi
may easily worsen due to ‘shocks’. The January 2015 floods in southern Malawi took away most of
the region’s maize harvests, whereas on higher grounds elsewhere in the country the 2015 maize
production is negatively affected by a prolonged dry spell in what normally would be considered the
rainy season. The 2015 weather may be a one-off combination of extremes, but it offers a pre-view of
the future effect of climate change on weather patterns in the country. It is expected that weather
extremes occur more frequently, with soils not able to absorb fast enough the run-off water and roads
not designed to cope with floods.
23. Rural Malawians are strapped for cash, and a smallholder’s wish to carry over a balance
income from one crop cycle to invest in the next competes with the need to feed the often already
malnourished household. The surplus from the sale of agricultural produce is marginal, as farmers are
often forced to sell for a low price, due to their incapacity to store, their lack of knowledge on quality
determinants (grading) and the many small traders that stand between the farmer and the market
demand. A fall in prices for agricultural produce is as much a ‘shock’ to rural livelihoods as are
weather extremes.
24. Smallholder agriculture is stuck in this vulnerable state by a combination of factors: Land
access, land productivity, resilience to adverse weather and market access. The low resilience of
smallholder farming to adverse weather renders any effort difficult to produce the crop so urgently
needed to feed the family.
25. Land access. The access that smallholders have to land is generally a usufruct right under the
‘customary’ title, but due to the high demand for arable land the practice to sub-let such land on a
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seasonal basis to other smallholders willing to cultivate is widespread. Household access may range
from well-respected longstanding birth rights shared (and sometimes contested) between close
relatives; to an informal seasonal lease arrangement, which hardly ever extends for more than one
season, and is on preference given to those who pay in advance. This makes a smallholder’s long-
term access to land uncertain and gives little incentive to improve land productivity by investment in
soil properties and irrigation.
26. Declining land productivity. Because of high pressures and existing agricultural practices,
land resources face severe degradation resulting in a steady decline in yields (see appendix 14).
While existing lands are farmed with little investment in soil properties, new lands are located on
increasingly marginal soils. As a consequence, both soil fertility and soil moisture retention are under
pressure. Most land is farmed under rain-fed conditions and produces usually one crop in the rainy
season, with risks of failure due to extreme rains and prolonged dry spells; a second short cycle crop
follow on residual soil moisture available in the marshlands dimba. Forecasted climate change effects
(longer dry spells, more intense bouts of rainfall) will worsen the situation as topsoil is increasingly
prone to erosion.
27. Several programmes aim to reverse the trend of soil loss and declining yields. The government
invests in a Farm Input Subsidy Programme (FISP) to counter the effects of declining soil fertility on
maize production. Moreover, an Irrigation Master Plan and Investment Framework (IMPIF) has been
formulated to help expand smallholder irrigation (building a/o on the models demonstrated by the
Irrigation Rural Livelihoods and Agricultural Development Project (IRLADP)). The Sustainable
Agricultural Production Programme, through the agricultural extension services, promotes good
agricultural practices on smallholder land. While approaches and programmes exist, their impact is
limited due to the low coverage of extension services, limited regional roll-out and low adoption by
farmers.
28. Limited access to markets. A third reason why smallholders remain in their precarious
position – and remain hesitant to adopt new practices – is their limited access to input and product
markets. Inputs can be purchased from dealers, who generally have limited stock of seeds and
fertilisers, with little ability to provide advice on their optimum usage. Sale of produce takes place on
an individual basis at the end of the season (i.e. a standing crop is seldom sold), when smallholders
are most pressed for additional income. Bulking and grading takes place by the traders. There is a
limited use of calibrated units, either in terms of volume or weight. At the same time, large commodity
traders, such as ETC and Universal, indicate that although they have unmet demands, farm gate
prices remain low. The consequence of this is that farmers gain too little from the sale of their
products to invest in their farm enterprise. Moreover, a minor fall in output prices will have a relatively
large impact on smallholders’ capacity to maintain even their present subsistence level.
29. The Programme for Rural Irrigation Development (PRIDE) addresses the above mentioned
challenges and intends to render smallholder farming systems profitable and sustainable. PRIDE will
reduce vulnerability to food insecurity, to the effects of climate change and to the vagaries of the
markets by enabling farmers to sustainably enhance their production levels to surpass the household
nutrition requirements and to obtain profitable margins from their markets. PRIDE aims to achieve this
through a combination of investments in (i) expansion of irrigation and soil- and water conservation
infrastructure; (ii) organise secure land allocations for irrigated land; (iii) promotion of good agricultural
practices; and (iv) linking smallholders to improved value chains.
30. The inclusion of major investment in (re-)construction of medium-sized irrigation schemes,
ranging between 40 and 850 hectares, would substantially enhance agricultural productivity and
opens opportunities for intensified cash crop production and for more reliable market linkages. In
order to address both the rain-fed and irrigated elements of the farming system, the Programme will
address scheme cluster areas: i.e. the irrigation scheme and the rain-fed land belonging to the
villages involved in irrigation scheme development. Addressing scheme cluster areas allows the
Programme to take on a farming system perspective and to capitalise on synergies therein. It allows
to broaden the perspective on enhancing productivity and commercialisation to one where local
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resources are used optimally to better nourish the beneficiary households throughout the annual
cycle.
31. By optimising the smallholder farm enterprise – through enhanced climate resilience, increased
cropping intensities, sustainable and enhanced agricultural practices and a focus on market prices
and demands – PRIDE enhances the value of land resources. This allows for the subdivision of
present rain-fed holdings into multiple irrigated holdings; and for compensation of land loss due to
infrastructure, as all people affected by the development of an irrigation scheme can improve their
livelihood. It is this value addition that makes it possible to broker new land deals at the local level,
with better guarantees to the smallholder concerning long-term access to land. Improved agricultural
practices and stronger market linkages further increase the potential value of land and the returns to
smallholder farmers.
32. National and IFAD country portfolio objectives help define the scope of the PRIDE concept.
Investment in irrigation, crop production and market opportunities for smallholder farmers is well
aligned to Malawi’s Growth and Development Strategy (MGDS) and fits into the agenda set for
agricultural development by the Agriculture Sector Wide Approach (ASWAp).
33. The PRIDE concept – invest in soil- and water management; promote good (i.e. climate smart)
agricultural practices and improve value chains; all aimed at the smallholder farmer – follows logically
from IFAD’s Country Strategic Opportunities Programme (COSOP 2010 - 2015). The goal of the
COSOP is to “reduce poverty and expand economic opportunities among the rural population”.
COSOP objectives include: (i) increased sustainable productivity through improved natural resource
management; and (ii) the creation of sustainable agricultural input and produce markets. The COSOP
mid- term review concluded that the COSOP is well-aligned to the country framework (MGDS II, 2012
to 2016, and ERP). It also recommended prioritisation and immediate assistance to design of the
proposed Smallholder Water Management Programme, now renamed Programme for Rural Irrigation
Development (PRIDE).
34. PRIDE complements and expands the services provided by the existing IFAD portfolio, and
builds on lessons learned in the Irrigation, Rural Livelihoods and Agricultural Development Project
(IRLADP). During start-up and implementation, synergies will be developed with both the Rural
Livelihoods and Economic Enhancement Programme (RLEEP – market linkages) and the Sustainable
Agricultural Production Programme (SAPP – good agricultural practices). PRIDE will build on their
presence in some areas; and will support these programmes to expand into others.
35. The establishment of infrastructure and farming systems that enhance resilience of scheme
cluster areas to climatic shocks and -risks will be supported by the dedicated IFAD Adaptation for
Smallholder Agriculture Programme (ASAP), and will build on lessons gained through this programme
in sub-Saharan Africa.
36. Given its track record in irrigation development, its portfolio of complementary programmes and
its comparative advantage in funding climate-resilient investment in soil and water management and
climate smart agriculture, IFAD is well placed to support the Programme for Rural Irrigation
Development.
II. Programme description
A. Programme area and target group
37. PRIDE is a national programme that supports smallholder farmer communities in and around
medium-scale irrigation systems.
38. Twenty-four schemes have been pre-selected – of which 15 are prioritised – in two regional
clusters in the Northern and Southern Malawi. The selection of irrigation schemes has been guided by
the Irrigation Master Plan and Investment Framework (IMPIF). The IMPIF, finalised in January 2015,
is GOM’s sector strategy and has been developed in consultation with development partners including
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IFAD. The Master Plan builds on the lessons learned in the sector, notably from the IFAD and World
Bank-funded IRLADP, to determine major strategic directions for investment. In addition, the IMPIF
Investment Framework prioritises potential schemes using a multi-criteria analysis covering technical
feasibility, stakeholder support, market potential, economic viability and environmental factors.
39. From the IMPIF priority list PRIDE applies two additional criteria for scheme selection:
(i) minimum size 40 ha, to secure sufficient scale for marketing, and maximum 850 ha, to secure
manageability by WUAs; and (ii) not located in a district where substantial irrigation investment is
planned under other projects, to avoid competition for implementation capacity. Priority has been
given to schemes generating EIRRs of above 10%. Finally, schemes have been clustered to realise
efficiencies during implementation; with preference given to three schemes within one area to be
developed in series. Sequencing scheme development in one area allows for efficiencies in staff,
contracts and cross-learning. To reduce the risk of delays over the total Programme period, the larger
– and often more complex – schemes would generally be the first to be developed; allowing possible
delays to be recovered over the subsequent years. The selection of prioritised schemes has been
reviewed and confirmed by the Department of Irrigation.
Table 1: Irrigation schemes short-listed for PRIDE
Lot Scheme District Irrigation Service Department (ISD)
Command Area (ha)
EIRR (%)
Study level
1
Marko Chitipa Karonga 727 15 Pre-feasibility
Matoponi Zomba Machinga 73 16 Feasibility
Mlooka Zomba Machinga 138 13 Feasibility
Mpamba Nkhata bay Mzuzu 788 18 Pre-feasibility
Nkhulambe / Wowo Phalombe Blantyre 310 21 Feasibility
Kasimba Karonga Karonga 162 10 Pre-feasibility
2
Mwenilondo Karonga Karonga 524 23 Pre-feasibility
Nazombe Chiradzulu Blantyre 470 11 Pre-feasibility
Mafinga Hill Chitipa Karonga 43 15 Pre-feasibility
Chanyungu Mposa Machinga Machinga 114 14 Feasibility
Msenga Nkhata bay Mzuzu 836 23 Pre-feasibility
3
Chipofya Rumphi Mzuzu 369 20 Pre-feasibility
Lingoni Machinga Machinga 189 18 Feasibility
Kadewere Chiradzulu Blantyre 300 10 Pre-feasibility
Kasano Karonga Karonga 95 20 Pre-feasibility
Totals 7 districts 4 ISDs 5,138 ha
40. The data show indicative scheme costs, EIRRs and benefitted areas vary between IMPIF
estimates and available studies; and some schemes are studied at pre-feasibility level only, while
others have advanced to detailed design. In all cases, additional interaction with intended scheme
beneficiaries is needed to confirm planning and design choices. Consultative planning with intended
beneficiaries is still required to address the consolidation of rain-fed land into irrigated land; and
environmental and social studies and reviews may need to be undertaken as required under the
relevant Malawian and IFAD policies and regulations. Henceforth, a 9 scheme reserve list has been
added to the priority list of 15. In selecting the reserve schemes a minor concession has been made
with respect to the EIRRs.
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Table 2: Irrigation scheme reserve list
Scheme District Irrigation Service Department
Command Area (ha)
EIRR (%)
Study level
Dowa Dambo Dowa Kasungu 375 22 Pre-feasibility
Nkawinda/Bakasala Blantyre Blantyre 121 28 Feasibility
Likabula/Kholiwe Mulanje Blantyre 629 16 Feasibility
Faiti Mwanza Blantyre 505 8 Pre-feasibility
Mdenga Balaka Machinga 204 10 Pre-feasibility
Lupenga Mzimba Mzuzu 313 8 Pre-feasibility
Perete Phiri Mzimba Mzuzu 564 8 Pre-feasibility
Bwanamudoko Mzimba Mzuzu 784 8 Pre-feasibility
Msindwa Nkhotakota Salima 337 8 Pre-feasibility
Totals 6 additional districts
1 additional ISD 3,833 ha
41. PRIDE’s priority is to develop approximately 15 irrigation schemes, resulting in about 5,200
hectares newly under irrigation. Given an average irrigation scheme size of approximately 350 ha;
each irrigation scheme will be associated with one or more villages, whose inhabitants cultivate the
land to be brought under the scheme. An estimated 90% of the smallholder households in these
villages will take part in the irrigated agriculture while retaining lands for rain-fed farming, whereas the
remainder 10% will continue to work only on their rain-fed land outside the irrigated area. Farmers in
the latter category are not willing to make the transition into irrigated agriculture but will benefit from
PRIDE support to good agricultural practices and market linkages for rain-fed crops. PRIDE supports
both types of smallholder farms. The figures in the table are estimates only and will be further
specified by the Programme’s baseline survey.
Table 3: Total and estimated beneficiary population in PRIDE pre-selected scheme cluster areas
Population segment Total Population Irrigated land Rain-fed land
Estimated
beneficiary
population
# HH ha ha # HH
# smallholder
households targeted
for irrigated and rain-
fed agriculture 17,500 5,250 10,500 15,750
# smallholder
households targeted
for rain-fed
agriculture only 2,000 0 1,800 1,800
19,500 5,250 12,300 17,550
42. PRIDE will invest in irrigated and rain-fed agriculture on lands belonging to villages involved in
the irrigation scheme development: the scheme cluster areas (see figure 1). Thus, the entire farming
system, including its rain-fed and irrigated sub-system, is taken into consideration.
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Figure 1: Schematic of PRIDE’s targeting of scheme cluster areas
43. The target group is defined as smallholder farmers in the selected scheme cluster areas.
Within this group, a primary target group comprises the households that are currently food insecure
and produce mainly for subsistence.
44. Poverty. Based on the data reported in appendix 2 and in the underlying working paper, the
target group can be further analysed in terms of poverty and a typology can be applied as follows:
Ninety per cent of rural dwellers are reportedly engaged in farming. In the scheme cluster areas
this percentage can be assumed to be virtually hundred as the small commercial centres –
where shops, services and schools are located – are generally located on the roadside rather
than in the scheme cluster areas. This would especially hold true if we consider the household:
while some individuals may be engaged outside agriculture, the household living in the area still
would be engaged in agriculture;
Rural poverty in the northern and southern regions is 60 and 63% respectively. Assuming that
non-farming households are generally better-off, and that these households are generally
absent in the scheme cluster areas, it seems reasonable to estimate prevalence of poverty in
the scheme cluster areas at 70%. Households that are poor but not ultra-poor (see next) are
food insecure in at least some years, while non-poor smallholder households are food secure in
all years and are able bounce back after extreme events;
Extreme poverty, coinciding with food deficiency, is reported at 29 and 33% for the rural north
and south respectively. Here it is estimated at 35%, reflecting the absence of well-off non-
farming households in the total sample. This category includes landless and near landless
households who largely depend on agricultural labour.
Table 4: Target group typology
Categories Households (#) Households (%) Support by PRIDE
Total 19,500 100 --
Non-farming households 0 Negligible --
Food secure smallholders 5,850 30 all
Food insecure smallholders
6,825 35 all, but 2.2 (marketing) with
limits Food deficit smallholders 6,825 35 All but 2.2
(marketing)
45. Gender. Poverty and food security are – like elsewhere – not gender neutral. Close to 30% of
rural households are female-headed; while the incidence of poverty among these households is some
15% higher than average. Female-headed households earn only 60% of the annual income of male-
headed households. Some 60% of the expenditure of female-headed households is on food whereas
for male-headed households it is 54%. Roughly 70% of full-time farmers are women, but women
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hardly ever have full control over agricultural land and their access to credit is lower than for their
male counterparts.
46. Youth. Little data are available on the position of youth in the rural areas. At an aggregate level,
it is known that the technical and vocational training sector is unable to absorb all qualified applicants,
while the formal employment sector only creates 30,000 jobs per year against 300,000 educated and
semi-educated new entrants. This would leave the rural youth with very poor prospects for
employment outside the agricultural sector, while agriculture itself does not create many new
opportunities in either services or processing. A recent small but significant household category
comprises child-headed households, which came into existence as an effect of the HIV pandemic.
47. PRIDE supports smallholder farmers in the scheme cluster areas (i) to gain – through
membership of irrigation Water Users’ Association (WUAs) – secure access to irrigated land; and
(ii) to pursue climate-smart good agricultural practices and viable links to input and produce markets
on both irrigated and rain-fed lands. Whereas all smallholder farmers in the scheme cluster areas can
benefit, PRIDE will include mechanisms to prioritise food-deficit and food-insecure households to
partake in the programme benefits, while mechanisms will also be included to secure participation in
programme benefits by women and youth. Adequate targeting and a focus on the priority target group
is further safeguarded by the inclusion of a gender and targeting specialist in the Programme
Coordination Office.
48. Irrigated lands. When reallocating the land resources that fall in the irrigation command area,
priority will be given (i) to provide smallholders who contributed rain-fed land in the command area
with irrigated plots of an at least equal value; and (ii) to provide project affected people with an at least
equal livelihood opportunity. Remaining irrigated land resources would be redistributed by the WUA
and the community leadership, through a consultative process with adequate government oversight,
whereby allotments are on preference given to food-deficit and food-insecure households that are
willing to transit into irrigated agriculture. Programme baseline surveys and subsequent monitoring will
help to confirm that food-deficit, food-insecure and female-headed households have, at least,
equitable access, and that this access is not compromised over time.
49. Soil and water conservation. The prioritisation of areas for soil and water conservation
investments should employ socio-economically neutral criteria: erosion vulnerability, environmental
risks and community priority. As the infrastructure to protect or restore degraded lands will need to be
maintained and cared for, benefits of this land should accrue to conservation groups charged with
maintenance and daily care. Participation in these groups, and the distribution of benefits within these
groups, should give at least equitable opportunities to food-deficit, food-insecure and female-headed
households. This will be implemented by community institutions (see III.B and appendix 5) and will be
confirmed through programme monitoring.
50. Good Agricultural Practices. Smallholder farmers and Lead farmers – initially assigned by
community institutions – will jointly prepare a curriculum for the farmer field schools, the predominant
extension approach in PRIDE and SAPP. Lead farmers will share new knowledge and skills within
farmer field schools. Lead farmers will be both female and male and their position will after an initial
season rotate amongst the members of the farmer field school. Monitoring will confirm that around
30% of the lead and “normal” farmers at any given point in time is female. To enhance adoption of
good agricultural practices by poor smallholder households, including female-headed households –
PRIDE, through the service agencies, promotes a household mentoring approach whereby the entire
farmer field school helps the deprived households to reap the benefits of the opportunities offered.
This means that the FFSs should all reflect a fair cross-section of society. Examples for GAPs in
irrigated land include Integrated Pest Management, prudent use of fertilisers, System of Rice
Intensification (SRI)’and last but not least improved post-harvesting.
51. Mainstreaming nutrition. To ensure that higher production and better marketing do contribute
to an integral improvement of livelihoods, targeted mainly at both, food deficit and insecure
households, PRIDE will align to the GoM’s thrust on improving nutrition through nutrition extension
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and training. This will be guided by an aim to substantially reduce child stunting and tracked through
the monitoring system. In addition, an investment in improved cooking stoves with training on food
preparation will be made.
52. Improved cooking stoves. Whereas for all other programme benefits, the degree in which a
household benefits reflects the land resources that the household has access to, this is not true for
the promotion of improved cooking stoves. The programme will therefore employ criteria that ensure
that the cooking stoves are on priority installed in female-headed households, child-headed
households and in food-deficit households. Since women (and children) are charged with the
collection of fuelwood, the improved cooking stove can have an especially significant labour-saving
impact in female and child -headed households. The associated training on nutrition is especially
relevant for the food-deficit households, helping them to make best use of the limited food resources
they have. Main effects of saving fuelwood will be reducing Green House Gas emissions and savings
households cash on wood purchases.
53. Market linkages. Farmer business schools shall, like the farmer field schools, reflect cross-
sections of society, whereas producer groups – which are groupings of farmers willing to pursue a
market opportunity – will be promoted to remain inclusive for food-deficit and food-insecure
households. However, the more pressed for food, the less one can expect these households to
engage in commercial cropping. Their benefits may also be indirect through the provision of
agricultural labour. Activities like bulking and grading of crops, use of information technology for
farming and marketing and introduction of mechanisation will with priority involve youth.
54. PRIDE will engage smallholder households (identified with emphasis on poorer households,
women and female-headed households and rural youth) in crop production and marketing for food
and income on both irrigated and rain-fed land. PRIDE’s targeting mechanism draw on IRLADP
lessons (see section II.D) and aim for equitable participation, including the allocation of irrigated land
and in provision of other services, such as training. For many activities – especially during
consultative planning at scheme cluster area – interactions will take place with existing entities (e.g.
local leadership, village and agriculture development committees). PRIDE will deliver its services to
groups of beneficiaries, including Water Users’ Associations, farmer field schools and farmer business
schools. Given the need to secure the leasehold right of irrigated land, water users will be helped to
form and register Water Users’ Associations. If the WUA is in a position to engage in large-scale
contract farming, registration as an Agricultural Cooperative should be considered. Other beneficiary
groups – especially those engaged with markets – may need help to register as a legal entity, but only
if doing so improves their prospects.
55. PRIDE aims to specifically reinforce the position of female smallholder farmers in both in
access to irrigated lands, in agricultural innovation and in participation in cash crop value chains.
Women’s access to land in village societies that can be either matrilineal or patrilineal needs to be
taken into account when assessing land agreements. Women’s right to revenues needs to be
considered when selecting which cash crops to promote. Extension workers need to be given gender
training, and those female extension workers that are employed need to be enabled to reach female
smallholder farmers. New practices that increase women’s workload need to be set-off by introduction
of labour-saving practices, such as the introduction of improved cooking stoves.
56. The Programme Coordination Office will include a gender and targeting specialist to advice the
programme – and the agencies mobilised for its implementation – on measures to ensure adequate
targeting.
B. Development objective and impact indicators
57. PRIDE’s goal is to help enhance the resilience of rural communities to food insecurity, climate
change effects and economic shocks. Its development objective is that smallholder farmer households
increase income and nutritional intake from sustainable agricultural production. Success of PRIDE
can be assessed by comparing the following impact indicators at the Programme’s start and close.
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Surveys during the first and final years of the Programme will help gauge the impact. Each indicator
will be differentiated according to gender, age and wealth class:
The number of smallholder households reporting enhanced cash income;
The number of smallholder households reporting decreased incidence and duration of hunger
periods measured by the number of meals per day and by dietary diversity;
Number of smallholder households s applying climate-smart agricultural practices;
The number of smallholder households with an 20% improvement in the household assets
ownership index;
The occurrence of child malnutrition, as shown by inter alia a 20% reduction in occurrence of
under-five child wasting.
C. Outcomes/Components
Component 1: Irrigation Development and Catchment Management
Sub-component 1.1 Land and Water Governance
Sub-component 1.2 Irrigation System Development
Sub-component 1.3 Soil and Water Conservation
Component 2: Agriculture and Market Linkages
Sub-component 2.1 Improved Agricultural Practices
Sub-component 2.2 Market Linkages
Sub-component 2.3 Mainstreaming Nutrition
Outcomes
58. PRIDE aims for two complementary outcomes:
Outcome 1: Climate-resilient 4land and water management systems for smallholder households
on both rain-fed and irrigated lands;
Outcome 2: Environmentally and economically sustainable agricultural production systems
adopted by smallholder households on both rain-fed and irrigated lands.
59. The above programme outcome are supported by two components, divided into six sub-
components: Component 1 pursues irrigation development and catchment management; and
Component 2 develops climate smart agriculture and viable market linkages. Both components are
designed anticipating the exit of Programme support and therefore address questions of long-term
access to and management of resources and of viability of farming systems beyond the Programme
support period.
60. Project management – and the knowledge management that forms part of that – is neither an
outcome nor a programme component. Project management is discussed in section III.
Component 1: Irrigation Development and Catchment Management
Outcome Outputs
a) Climate-resilient land and water management systems for
smallholder households on both rain-fed and irrigated
lands
1.1 Communities effectively manage their
medium-sized irrigation systems
1.2 Medium-sized irrigation systems (50-1,000
ha) established
1.3 Erosion-affected and vulnerable land rain-fed
land recovered
61. This component aims to develop climate-resilient land and water management systems for
smallholder households on both rain-fed and irrigated lands. Sub-component 1.1, Land and Water
4 In PRIDE, resilience to effects of climate change will be measured by households having access to irrigated land,
cultivate at least 3 different crops (diversification)and apply good agriculture practise including soil improvement
techniques.
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Governance, concerns the preparation for and management of irrigation infrastructure. Irrigation
investments (sub-component 1.2) aim at enhancing agricultural productivity. Sub-component 1.3
focuses on the soil and water conservation measures in the wider scheme cluster areas.
Sub-component 1.1: Land and Water Governance
62. This sub-component targets the preparation stage for all investments (including component 2)
in the scheme cluster areas. This includes the management, operation and maintenance of irrigation
schemes by WUAs, building on the approach used by IRLADP. The diagram provides an overview of
the process and the entities involved.
Figure 2: the community planning and investment agreements (CPIA) process
63. Preparation activities and investment agreements. A Community Planning and Investment
Agreement (CPIA) process will be initiated in scheme cluster areas, which includes free prior and
informed consent (FPIC) procedures and precedes any investment decision. PRIDE will set up a
multi-disciplinary CPIA team in each district to guide the preparation activities, comprising of
concerned government agencies at District level and specialized service providers where required.
The communities will during initial consultations be represented by their leadership and their existing
village development committees, who will be asked to convene a Combined Village Committee for the
scheme cluster area. Following an appraisal process, increased knowledge on the proposed
investments will enable the farmers to elect a WUA formation committee for the Water Users’
Association. The formation committee will take a lead role in the establishment of land and water
agreements, overseen by the Combined Village Committee. The other activities to be undertaken in
the scheme cluster areas, such as soil & water conservation, good agricultural practices and market
linkages, will be handed over to beneficiary groups and lead farmers who will liaise directly with
agencies implementing the PRIDE programme. Facilitators from within the community will be trained
to enhance participation of women and youth in the meetings, and as such improve equality in the
membership of committees.
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64. The CPIA process comprises the following key elements:
Scheme area appraisal – Participatory Rural Appraisals (PRAs) will be conducted by the CPIA
team together with the combined village committee, including the appraisal of areas to be
protected, consultations on irrigation scheme planning, and identification of crops and markets
to work on. The appraisal of irrigation scheme areas will capture the current land tenure
situation in terms of land use and land ownership. In this stage, the WUA formation committee
will be assigned.
Social and environmental scoping – in order to define the follow-up steps to mitigate
potential negative social and environmental impacts, a scoping note will be prepared at this
stage, with due involvement of the community representatives, and with consultation of
potentially affected people (see also section III.A).
Land and Water Agreements – Consultations will be held to establish Land and Water
Agreements between the WUA, landowners and, where applicable, Traditional Authorities. At
this stage, the WUA formation acts on behalf of the interests of the to-be-formed WUA; but the
agreement itself can only be concluded once the WUA is formally established. The
consultations will address (i) access to land for farmers with less access at present;
(ii) compensation for those affected by scheme construction activities; (iii) grievance
mechanisms; and (iv) confirmation of free, prior and informed consent. The Land and Water
Agreements will include (i) the amount of land each WUA member will have access to,
including procedures on land and water allocation in times of limited water availability; (ii) rules
for changes in access to land in case of non-payment, non-performance or death;
(iii) stipulations on sub-leasing; and (iv) procedures for conflict resolution.
Scheme Investment Agreements – In parallel to the Land and Water Agreement and WUA
establishment, the WUA formation committee will – in preparation to a WUA decision –
negotiate the irrigation scheme lay-out and the beneficiary contribution to scheme development
with the design consultant mobilised by PRIDE. In general, the WUA takes responsibility for
land levelling, construction of tertiary and field canals, and for collection of local construction
material. PRIDE aims to keep the beneficiary contribution within 20% of the total scheme value.
This will be carefully monitored during planning, design and construction. The WUA will form a
construction supervision committee of which the responsibilities need to be discussed; and
which’ role needs to be reflected in the construction contract. The conclusions of these
negotiations will be documented in a Scheme Implementation Agreement, to which the WUA
and the services mobilised by PRIDE will be held accountable.
WUA establishment – This activity is further detailed below.
Soil & Water Conservation Planning – Concurrent with the planning of the irrigation scheme,
the communities will also plan investments in the wider scheme cluster area. This planning will
be done through conservation groups, which are initiated by the combined village committee for
each prioritised eroded or erosion-prone area. These activities will be carried out under sub-
component 1.3.
Good Agricultural Practices and Market Linkages – Crucial to the success of PRIDE’s
investments, farmers will be assisted in their farming practices and value chain linkages. The
combined village committee will help enlist lead farmers for these activities, who will in turn form
groups to take part in the activities carried out under component 2.
65. All plans developed in the CPIA process will be submitted through the Area Development
Committee (ADC) to the District Executive Committee for approval and will provide the basis for
preparing the annual work plan and budget.
66. WUA establishment and strengthening. As part of the actions identified during scheme
appraisal, a WUA will be formed for each scheme as the legal entity holding lease of the irrigation
command area and responsible for land and water management in this area. WUAs are private, non-
profit, self-supporting, independent entities with four main functions: (i) management of WUA
members’ access to irrigated lands; (ii) operation and maintenance of the irrigation and drainage
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systems; (iii) collection of water charges and membership fees; and (iv) provision of law and order
among the irrigators (including resolution of irrigation water related conflicts).
67. PRIDE will support the establishment and strengthening of WUAs with the following activities:
Cross-learning – future WUA members will visit nearby functioning WUAs to get acquainted
with irrigation farming, scheme management and to learn from their successes and failures;
WUA constitution – election of executive committee members, interactive development of by-
laws and registration as a legal entity;
Formation of subcommittees – including technical training on management, finance and land
and water management;
Land access – Establishment of WUA parcel registers and the registration of user land rights;
Water abstraction rights – support to the formal registration of the WUAs water right;
Recurrent leadership training (every 2 years) for WUA Executive Committee members and
subcommittee leaders;
Recurrent scheme operation and maintenance training (every 6 months) for WUA members
involved in irrigation operation and maintenance.
68. As part of the WUA start-up phase, PRIDE will provide limited funding to WUAs that submit
well-justified plans. Using the experience from cross-learning visits and initial training, the WUAs will
prepare investment proposals against the predefined maximum budget. Proposals will be assessed
on their merits by a committee formed by PRIDE. This modest facility will allow WUAs to pursue minor
improvements of infrastructure, purchase of office equipment or communication aids, all with the
ultimate aim of improving scheme management.
69. Joint review, on-demand training and studies. PRIDE will monitor the implementation and
impacts of land and water agreements through regular joint reviews, the results of which will be
reported both to the WUA as well as community representatives. A specific tracer study will be
conduct over the full length of the programme on a limited number of schemes, to get an in-depth
understanding of the land access dynamics and how these affect agricultural practices, and to
propose improvements to the CPIA process. To do so, PRIDE will link up with the Global Land Tools
Network through their partnership with IFAD under the regional “Tenure security learning initiative”
grant programme.
70. Recurrent WUA inspection visits will serve to assess the state of the irrigation system, advice
the WUA on required O&M and to optimise the scheme’s functioning. The inspections will also identify
capacity building needs, which will be addressed through needs-based and on-demand training. This
inspection and needs-based training will be done during the first three years of WUA functioning. Both
the land and water agreements reviews as well as the WUA inspection visits will at programme start
include recently finished IRLADP schemes to guarantee their continuity.
71. To capitalise on the sizeable investments made under PRIDE, the programme will include
comparative studies on emerging irrigation practices. The topics for these studies will be defined as
practices emerge, and could range from O&M modalities, land and water distribution practices and
agricultural strategies to financial management and conflict resolution.
Sub-component 1.2: Irrigation System Development
72. The main focus of this sub-component is the development of 15 irrigation schemes, covering
about 5,200 ha. Investments in this sub-component are guided by the Irrigation Master Plan and
Investment Framework (IMPIF). One of the key strategies that emerged is to invest in water storage.
With increasingly erratic rainfall patterns as a result of climate change and utilisation of dry season
river flows reaching its maximum, water storage has become a necessity for further agricultural
development in Malawi. Water storage will have a positive effect on the regulation of water flows and
as such, combined with improved catchment management, reduce the chance of river floods.
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73. The shortlisted schemes (table 1) are located in seven districts concentrated in four Irrigation
Service Divisions (ISDs). With an average design-to-commissioning time of 3 years, irrigation
investments will be phased in three lots (see figure 2) with 1 or 2 schemes per ISD in each lot. The
ISD and district staff as well as contractors can as such optimise their work on consecutive schemes.
The more complex schemes will be constructed first, to avoid late-programme delays. Household land
allotments, estimated at an average 0.3 ha per household, will vary from scheme to scheme and will
be determined in the Land and Water agreements (sub-component 1.1).
Figure 3: Phasing of irrigation scheme development
74. Environmental and social due diligence. Four of the schemes in the shortlist include water
storage by medium-sized earthen dams, between 8.5 and 18.5 meters in height and with storage
capacities between 4.5 and 9 million m3. Two schemes use pumps for water supply, others are
gravity-fed. Each scheme will have its own social and environmental risk profile, which will be
established during scoping (see above). Especially for the schemes where construction works and
reservoirs impact on present land use and settlement, will need to undergo a thorough environmental
and social impacts assessment (ESIA), including the drafting of environmental and social
management plans (ESMP) and – where need be – resettlement plans per scheme area. These
assessments and plans are required by IFAD’s Social, Environmental and Climate Assessment
Procedures. The SECAP is required to be adopted by the Government of Malawi prior to presentation
of the programme to the IFAD executive board.
75. Environmental Potential negative impacts and proposed mitigation measures will be discussed
with the community representatives and with affected people, conform the applicable regulatory
framework. In all cases where an ESIA is needed, the community leadership will be asked to
participate in the set-up of a mechanism to address grievances. Compensations for resettlement and
loss of access to rain-fed land will be included in the land- and water agreements.
76. Implementation readiness is a major focus for PRIDE, as irrigation projects are known to be
prone to start-up delays. The availability of feasibility studies (5) and pre-feasibility studies (10)
reduces the risk of start-up delays, while a start-up financing facility can be used between signing and
first withdrawal to launch further consultancies for feasibility and detailed design studies. Final
commitment to invest in schemes will be based on feasibility studies and on community commitment;
and flexibility will be practiced in case unforeseen complications arise, in which case schemes from
the reserve list (see table 2) will be selected.
77. Unit costs and economic/ financial feasibility per scheme. Based on the available studies
and IRLADP’s experience, the average unit (hardware) costs are estimated at 7,862 USD/ha,
including an estimated 20% farmer contribution. These unit costs are significantly lower than the
average unit costs for new irrigation construction in Sub-Saharan Africa of 13,802 USD/ha (Inocencio
et al., 2007; in 2014 USD values), yet higher than the average unit costs for projects having an EIRR
larger than 10% (4,681 USD/ha). The high unit costs can partly be explained by high costs of
transport and imported materials, yet there is scope for PRIDE to push for more cost-effective
designs.
78. Integrated Contract pilot. In an attempt to find new methods to contain the high unit cost for
irrigation development – and thereby to enhance the feasibility of investing in smallholder irrigation –
the Programme will pilot an innovative procurement arrangement, that has been successfully applied
by other sectors. In an effort to reduce unit costs, PRIDE will pilot the use of integrated contracts; one
combined contract for design, build and transfer (DBT) of schemes which will be tendered to consortia
of engineering firms, civil works contractors and organisational development specialists. The DBT
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contract value will be based on a unit cost per hectare, instead of on a bill of quantities. This would
give the consortium the incentive to minimise costs and maximise land under irrigation through water
efficiency gains, and to achieve this by working more closely with the community. Payment of the
contractor would be based on actual area irrigated after an initial period of operation (say 3 years);
and on evidence of a successful transfer of scheme management. Such contracts will require higher
contract management capabilities on the side of PRIDE, and substantial working capital on the side of
the consortium, and would place new demands on quality control as a part of contract supervision.
PRIDE will carry out market consultations to address these issues and pilot a DBT contract for one
scheme.
Component 1.3: Soil and Water Conservation
79. This sub-component addresses urgent environmental degradation risks in scheme cluster
areas by funding soil and water conservation measures. This is part of PRIDE’s sustainable land
management strategy which also includes the promotion of good agricultural practices in sub-
component 2.1. All activities in this sub-component are financed through ASAP.
80. The overall approach for soil- and water conservation in the scheme cluster areas is to invest in
measures that address land degradation, on the proviso that management of the lands thus protected
or restored is placed with conservation groups. In return for ensuring the upkeep of the infrastructure,
these groups can reap benefits from the land. This will be achieved through for instance the planting
of dual-purpose trees or restoration of soil cover on degraded lands by grasses suitable for cut-and-
carry practice.
81. Planning. In the CPIA process (sub-component 1.1); priority areas for soil- and water
conservation measures will be identified in conjunction with the combined village committee. For each
prioritised area, the smallholders directly associated with the area will be promoted to form a
conservation group (see appendix 5 for an overview of organisations). Local knowledge on specific
environmental degradation risks will be the primary guide to the selection of interventions, supported
by geographical information from the CPIA process, including land degradation vulnerability
assessments. The planned interventions in natural resources management will be drawn up alongside
the agreements for the irrigated command area, and two yearly follow-up meetings will be held
between agency staff and combined village committee to review the management of the investments.
82. Investments in this sub-category specifically aim at:
Restoration of soil cover, targeting vulnerable grounds;
Protection of river buffer zones through demarcation and possible fencing off;
Erosion control investments such as vegetated contour bunds and gabions for tackling rill
erosion and plugging of gullies, respectively;
Reforestation of slopes through the provision of seedlings. Especially communities where
improved cooking stoves (sub-component 2.4) are introduced will be supported in community
forestry and agro-forestry using for instance fast-growing nitrogen-fixing species like pigeon
pea, Tephrosia, Senna, and Gliricidia; along with species that can be used as fuel wood.
83. Implementation and joint reviews. Implementation will be done through conservation groups.
The planning of the natural resources management investments will need to ensure these generate
benefits for the conservation groups and at the same time upgrade the local natural resources base.
Representatives of the conservation groups will participate in the planning meetings and will receive
technical assistance through extension services as required.
84. Scaling-up. The approach used in PRIDE follows national strategies for catchment
management, yet is applied to a smaller area so that a notable local impact can be created within the
available resources. The investments in the scheme cluster areas will provide a model for
comprehensive catchment management, and could be scaled-up through mobilisation of additional
resources by Government and/or donor agencies (see section IV.D).
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Component 2: Agriculture and Market Linkages
85. The objectives and outputs of this component are as follows:
Objective Outputs
b) Environmentally and economically sustainable agricultural
production systems adopted by smallholder households
on both rain-fed and irrigated lands
2.1 Smallholder farmers trained in good
agricultural practices on rain-fed and
irrigated land
2.2 Smallholder farmers linked to markets
2.3 Mainstreaming nutrition
86. PRIDE focusses on the complementarity of irrigation schemes, good agricultural practices
(GAPs) and market linkages. To achieve the latter two, PRIDE supports transfer of knowledge to
smallholder farmers through trials and demonstrations. Demonstration fields in the scheme cluster
areas show good agricultural practices and their potential benefits; while better information from the
private sector on market potential and opportunities should increasingly inform smallholders’ crop
choices. During the preparation stage, PRIDE will define in consultation with the existing
organisational structures and existing markets which crops to disseminate good agricultural practices
for, and which potential cash crop value chains to pursue. During this stage, the beneficiaries form
farmer field schools and farmer business schools.
Component 2.1: Good Agricultural Practices
87. The introduction of good agricultural practices by PRIDE builds on the experience gained in
SAPP. PRIDE will focus on adaptation and dissemination of existing climate-smart Good Agricultural
Practices. GAPs to promote include: utilisation of climate information services, conservation
agriculture (CA), irrigation optimisation, use of improved inputs, application of integrated pest
management and reduction of post-harvest losses.
88. Climate-smart agriculture/good agricultural practices: The UN Food and Agriculture
Organisation describes climate-smart agriculture, forestry and fisheries (CSA), as a contribution to the
achievement of sustainable development goals. CSA integrates the three dimensions of sustainable
development (economic, social and environmental) by jointly addressing food security and climate
challenges. CSA is composed of three pillars: (i) sustainably increasing agricultural productivity and
incomes; (ii) adapting and building resilience to climate change; and (iii) reducing and/or removing
greenhouse gas emissions, where possible. PRIDE will focus its extension efforts on the
dissemination of good agricultural practices, which fall within the definition of climate-smart
agriculture. For the moment, the following categories of climate-smart good agricultural practices have
been identified:
Use of climate information services – Farm decision should increasingly be informed by
accurate and localised information on weather and weather patterns. PRIDE will invest in an
assessment of the existing agro-meteorological network and will help upgrade the same based
on the needs of smallholder farmers, and especially in reflection of the need to optimise
irrigation releases. PRIDE will purchase portable weather forecasters, which can be distributed
to well-performing WUAs and to the extension field offices. Training will be given in the
interpretation and the use of weather and climate information. Communication channels such
as community radio programmes, internet and mobile phones will be utilised to disseminate the
information.
Optimisation of irrigated agriculture – Precise and timely application of irrigation water can
produce crops in predictable quantity, quality and time. Good preparation of, and care for,
irrigated soils help maximise the storage and use of soil moisture. Optimisation of water
deliveries helps bring the maximum possible command area under irrigation. Irrigation is
relatively new to Malawi, and government extension services are mainly focussed on rain-fed
farming. PRIDE will invest in research trials, technical assistance and extension services to
provide guidance to smallholder farmers turning to irrigation.
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Conservation agriculture – Conservation agriculture (CA), as defined by FAO, is a concept for
resource-saving agricultural crop production that strives to achieve acceptable profits together
with high and sustained production levels while conserving the environment. Conservation
agriculture has three principles: minimum mechanical soil disturbance; creation of a permanent
organic soil cover protecting the top soil; and crop rotation with more than two species. PRIDE
uses the experience of SAPP, which promoted demonstration sites to show the impact of CA,
including zero tillage, residue retention, basin planting, crop rotation, mulching, composting and
intercropping with leguminous species. CA in agricultural plots complements the soil- and water
conservation measures implemented in the scheme cluster areas under component 1.
Access to and use of improved inputs – This GAP aims to boost productivity through
introduction of high-yielding, short-maturing, drought-tolerant varieties. In addition, availability
and correct use of inputs such as seeds (e.g. inoculated legumes), fertilisers, natural
herbicides/pesticides and agro-chemicals will be promoted. PRIDE will help engage smallholder
farmers as contract farmers for seed multiplication, in cooperation with a qualified seed
company. PRIDE will train agro-dealers on the correct use (quantity, handling and timing) of
inputs. Other topics might be micro-packaging of inputs and timely procurement and delivery.
Training of agro-dealers would enable these to train smallholder farmers, as and when inputs
are purchased.
Integrated pest management – is defined as ‘the careful consideration of all available pest
control techniques and subsequent integration of appropriate measures that discourage the
development of pest populations and keep pesticides and other interventions to levels that are
economically justified and reduce or minimise risks to human health and the environment’
(FAO). IPM emphasises the growth of a healthy crop with the least possible disruption to agro-
ecosystems and encourages natural pest control mechanisms. Attention to pest management is
needed, as irrigated agriculture enables larger tracts to be grown in a single crop. PRIDE
provides funds for an inventory of existing IPM practices relevant to the crops grown in the
Programme area; and for adaptive research on IPM practices. Based on this, IPM Good
Agricultural Practices will be formulated and disseminated.
Post-harvest management – Post-harvest losses are high at about 30% on average, while
figures differ per crop. Rather than increasing pressures on soils, investment in post-harvest
management contributes to enhancing the marketable yields. Existing practices, such as
wetting peanuts to increase weight, may be detrimental as – in the case of this example –
growth of fungi is promoted, which in turn produce unacceptably high concentrations of
aflatoxin. PRIDE will transfer existing knowledge – tailor-made for each crop – to improve
timing of harvest, grading of produce, good storage practices and timing of collection, in order
to help reduce losses. Low cost improved storage facilities for smallholders will be
demonstrated and promoted.
89. Documentation of GAPs. PRIDE aims to define standardised documentation on the GAPs that
it promotes. The aim is to make available well-developed material – primarily to the extension cadre
and lead farmers – for a limited number of GAPs. The GAP fact sheets contain highly visualised
information on the proposed practice and on its relevance and anticipated impact. For each GAP,
information on productivity and profit will be complemented by information on the nutrition impact and
on the importance of diversified sources of nutrition (see also component 2.3). PRIDE will partner with
SAPP and the CGIAR centres present in Malawi to strengthen the knowledge base on GAPs.
90. Farmer to farmer extension work: The use of lead farmers has already been proven under
IRLADP and SAPP, and by NASFAM. The lead farmers concept shall be integrated in Farmer Field
Schools, and financial support of the project provided to the group as a whole for their common
activities. Lead farmers – female and male – will initially be identified in consultation with the
leadership and community representatives in the scheme cluster areas. Lead farmers will benefit from
the provision of demonstration packages and from training to build their knowledge of different GAPS
and their skill in extension and communication. In return, the lead farmers will be asked to form
Farmer Field Schools (FFS) comprising representatives from twenty households each. Through the
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FFSs, selected graduating farmers with technical capacities, trusted by their peers and leadership
characteristics will form the new lead farmers (facilitators) and establish their new FFS farmers group.
FFSs should have a clear curricula designed for specific crops/GAPs that is jointly developed by
extension, research and the FFS specialists. FAO – Malawi has been already approached and has
offered to assist PRIDE and also the ongoing SAPP in developing the FFS curricula and
implementation arrangements.
91. The approach is expected to create better adaptation of the issues discussed/addressed and
may enable FFS members to rotate in the role of lead farmer, so that different smallholder can
specialise in different practices. Demonstration fields will enable lead farmers to show and discuss the
results of newly introduced GAPs with smallholder farmers in the Farmer Field Schools. In addition to
farmer-to-farmer learning in the Farmer Field Schools, exchange visits will be arranged (see also
component 1.1); especially to show farmers the potential of irrigated agriculture.
92. Agricultural Extension: The performance of the FFS will be guided by extension agents, who
advise on the GAPs and monitor the group’s composition and functioning. PRIDE will on preference
make use of the MOAIWD, so that Agricultural Extension Development Officers (AEDOs), with
support from Agriculture Extension Development Coordinators and District Officers, will train the lead
farmers. PRIDE will invest in order to enable the performance of the extension services: training on
agricultural practices and gender aspects thereof, provision of equipment, including ICT, field gear,
transportation costs and motorcycles (especially for female extension workers). Where the agricultural
extension service is not sufficiently staffed5 to provide full coverage; or where specialised knowledge
(e.g. irrigated agriculture, cooking stoves) is lacking in the service, PRIDE will complement the
extension services by engaging other service providers (NGOs, private sector).
93. Training and extension materials and use of ICT. PRIDE will finance the development and
distribution of high quality training and extension materials including brochures, posters, and leaflets
and the development and broadcasting of extension services by radio. Each GAP will be well-
documented. PRIDE also invests in the use of ICT in extension services enabling quick and cheaper
dissemination of information and giving agriculture a modern image, especially for youth.
94. Inventory and adaptive research – PRIDE relies on existing technology and does not invest
in basic research but in research on innovative Good Agricultural Practices. Transforming existing
GAPs into practices with demonstrable benefits would in some cases still require two actions: the
inventory of potential GAPs, based on experiences elsewhere in the region; and adaptive trials on
farmer fields to confirm the potential of the new practice. PRIDE will outsource inventories and trials,
in order to develop a sizeable portfolio of Good Agricultural Practices. Special areas of attention, in
which to define GAPs, are integrated pest management and optimisation of planting times and
irrigation turns in irrigated commands.
95. Mechanisation. The rental of agricultural machinery on a professional basis is new to Malawi.
Mechanised traction would contribute to storage and availability of soil moisture. Traction helps break
the hard soil layer that has developed just below the root zone by years of superficial soil tillage.
Breaking this layer increases infiltration of rainfall runoff and enhances the depth of the root zone.
PRIDE will purchase two tractors equipped with rippers, to primarily help develop the irrigated
commands in the two regions where PRIDE is active. Alternatively, single axle tractors with multiple
attachments could be purchased to trigger a larger scale of services. PRIDE will outsource the
operation and maintenance of this equipment to one or more experienced commercial companies that
are able to manage a rental service with experienced operators and assured maintenance. Binding
agreements will be made to ensure that smallholders in the scheme cluster areas are the primary
beneficiaries of the service, which may – on a pilot basis – be partially subsidised. Smallholder
farmers, WUAs and producer groups and others may hire the service to improve their soil
characteristics.
5 Roughly one-third of the positions in the extension services are vacant, due to GOM’s inability to fund all positions.
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Component 2.2: Market Linkages
96. Promotion of market linkages builds on the work undertaken by RLEEP. Presently, it is
estimated by NASFAM that smallholder farmers produce roughly 60% for their own nutritional needs
and 40% for sale. When part of the holding gets irrigated, these figures will change as irrigation allows
for an intensified production under near optimal circumstances.
97. PRIDE aims to link smallholder farmers to existing markets or market opportunities in order to
increase the returns from irrigated crop land and render these large investments profitable. Prior
information from the markets/dealers enables farmers to understand which products are in demand
and how to produce these according to the desired quality and at the preferred time. Doing so enables
them to get better prices and return to land and labour. Optimisation of the value chains for key
products enable a better match between production and demand, which would benefit producers,
markets and consumers. As MOAIWD has only few staff engaged in marketing, PRIDE will mobilise
service providers for the implementation of this sub-component. Selection criteria include market
experience and intelligence; staff capabilities; inclusiveness of the proposed approach (women and
youth); and adequacy of the proposed work plan.
98. A review of existing Value Chain Analyses and an assessment of market potential led to the
following preliminary selection of crops for which value chains and market linkages would be
strengthened by PRIDE:
High-value cash crops – legumes (pigeon peas, soy beans and peanuts); sunflower for the
internal market and for export; and potatoes for the internal market. These crops are processed
in Malawi; the internal demand is not fully met as yet; and for legumes there is a potential for
export. Export of peanuts can be promoted, especially when the present high levels of aflatoxin
in the product are addressed. Production of sunflower can be optimised if seed of improved
varieties is imported;
Cereals like rice and wheat – these are grown for the internal market and substitute imports.
Both crops have some potential under irrigation, but their financial feasibility throughout the
year needs to be investigated;
Fruits and vegetables – these can be cash crops but revenues depend heavily on the season
and on distance to markets as these products are perishable and the market is periodically
oversupplied;
Cassava – Starch is presently imported, while cassava is already established as a staple crop
and it can be grow on rather poor soil.
It should be noted that the above list is indicative only and will depend on the participatory planning
exercise under component 1 namely the community planning and investment agreement (CPIA), and
additional value chain analysis under component 2.
99. Farmer Business Schools. The Programme focuses on training groups of smallholder
farmers, known as Farmer Business Schools (FBS, an approach established by RLEEP), on the
basics of commercial crop production (farm budgets, cost price calculations, use of weights and
measures, quality control, grading, storage and packaging, market intelligence). Where possible,
FBSs will coincide with existing organisations (i.e. created by other programmes) but PRIDE will insist
that youth and female smallholder farmers are represented in crucial positions. The Farmer Business
Schools start by inviting private sector companies to the scheme cluster areas to gather market
information, select crops on the basis of market information, and to identify preferred trade channels.
100. Producer Groups. FBSs promote cooperation among smallholder farmers to increase their
negotiating power towards input suppliers, traders and processors. Farmers that have received the
basic training will be stimulated to form producer groups, to jointly market their produce and to benefit
from a stronger negotiating position vis-à-vis traders and processors. Producer groups are in principle
loosely organised, as doing business with traders and processors does not require the group to have
a legal entity. Before focusing on formalising their organisational status; groups need to show they
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meet their obligations: i.e. delivery of minimum volumes of stipulated quality at agreed times. Only
when it would create better market opportunities, will PRIDE support groups to obtain a legal persona,
such as Agricultural Cooperative.
101. Commodity platforms. A commodity platform represents all actors in a value chain. In a
commodity platform, the value chain actors can collaborate to assess and carry through potential
interventions in the value chain. Options to be reviewed by the platform include market access,
product development, improving productivity, and efficient transactions along the value chain. Along
the proven approach under RLEEP, a service provider will facilitate commodity platforms for products
or product groups that are relevant to smallholder farmers in the Programme. Value chain actors to be
represented in a commodity platform include smallholder farmers, producer groups, traders,
processors, banks and micro finance institutes, Ministries and specialised Government Agencies (e.g.
National Bureau of Standards), NGOs, commodity research entities, National Business Women’s
Association, Chamber of Commerce, etc. Commodity platforms already exist for roots and tubers,
legumes, dairy and rice. PRIDE supports existing platforms and to-be-created platforms with studies,
training, development of materials, and a value chain start-up facility; but require the parties
represented in the platforms to invest as well, both in the financial autonomy of their platform and in
interventions in the value chain. The sustainability of platforms depends on their members and their
pro-activeness to keep the platform alive. PRIDE support aims to help achieve full financial autonomy
for the platform in a matter of years.
102. Value Chain Analyses and Market Studies. PRIDE will commission studies to help enhance
the market access and market benefits for smallholder farmers. Market studies are undertaken to
determine the market needs, market size and the competition for a specific commodity, and thereby
confirm the choice – during the initial stages of engagement in a scheme cluster area – of which
commodities to focus on. Value Chain Analyses (VCAs) describe the production chain from field to
table, and the network of actors involved in it. VCAs map processes and structures, identify actors,
constraints (including climate risks) and analyse how benefits are distributed. Moreover, a VCA
identifies potential interventions in the value chain, which help generate benefits for all actors in the
value chain, including primary producers.
103. Value Chain Start-up facility. PRIDE includes a Value Chain start-up facility which can be
accessed by the Commodity Platforms for specific investments that help improve the value chain and
enhances especially the benefits it generates for smallholder farmers. Investments could include
development of tracking and tracing systems; definition of new product standards, training on quality
systems, etcetera. The Value Chain Start-up facility cannot be used to share in commercial risks; the
investments are aimed at enhancing the efficiency of and value creation along the value chain.
104. Irrigation technology window. Finally, PRIDE will help pilot the introduction of in-field
irrigation equipment, such as drip irrigation and sprinklers, by the private sector in Malawi. To this end,
IFAD will fund an ‘irrigation window’, under the Malawi Innovation Challenge Fund (MICF). This is a
UNDP and DFID-funded matching grant mechanism, set-up and managed by UNDP. IFAD’s co-
funding will enable the expansion of an irrigation window, whereby eligible private sector companies –
preferably a consortium of commodity wholesalers and irrigation equipment suppliers – can compete
for funding on the basis of submitted business cases. The idea would be for wholesalers to pre-invest
in modernisation of smallholder irrigation in one or more blocks of an irrigation scheme, while the
equipment supplier installs and helps operate precision irrigation equipment. Such equipment enables
smallholder production to more reliably deliver sizeable quantities of high quality and quantities at a
pre-defined time. An allocation of up to USD 2.5 million has been earmarked from PRIDE to support a
specific Irrigation Window for linking private sector commodity wholesalers to irrigation equipment
suppliers, to enhance the former’s sourcing from smallholder farmers. The Irrigation Window has
already received catalytic funding from DFID of USD 0.5 million to be launched during 2015.
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Component 2.3: Mainstreaming Nutrition
105. Child stunting and anaemia are endemic in Malawi and their reduction has so far – despite
macro-economic progress – been slow. PRIDE intends to contribute to scaling-up nutrition (SUN) by a
combination of actions. The aim of these efforts is to reduce child wasting by 20% at the end of the
Programme period.
106. Dietary diversity survey. Stunting is the most relevant nutrition indicator for the Programme,
but other relevant indicators will be tracked as well, e.g.: body mass index (BMI) of women of
reproductive age (15-49); Women Dietary Diversity Score (WDDS) and time spent on accessing food,
fuel. WDDS is a proxy indicator for micronutrient adequacy and also a means of measuring impact on
dietary diversity. PRIDE will collaborate with FAO to conduct the dietary diversity survey utilizing the
FAO guidelines on dietary diversity scores. Secondary data on nutrition will be derived from a/o as the
Malawi Demographic Health Survey (MDHS), Multi-cluster Indicator Survey and National
Micronutrient Survey.
107. Scaling Up Nutrition (SUN).The PRIDE approach to nutrition is aligned to the approach that is
embraced by the GOM and by other development partners. GOM has established multi-sectoral
coordination of nutrition programme implementation at national, district, village levels and is planning
to deploy nutritionists in the local councils to improve coordination, monitoring and reporting. The
national Nutrition Education and Communication Strategy (NECS) aims to strengthen and harmonize
nutrition messages and practices from national to grassroots level. In the scheme cluster areas,
PRIDE will engage Food and Nutrition Officers of the Department of Agricultural Extension Services.
At national level, PRIDE will associate with the UN Malawi Nutrition Network and other key partners.
108. Extension services. In principle, extension and training on nutrition will be carried out by the
agricultural extension system, though PRIDE may engage other service providers to complement the
capacity of the government system. Services will be provided to the target group through lead farmers
through established farmer groups, care groups and village associations. Lead farmers are trained by
AEDOs who in turn are trained and supervised by agricultural extension development coordinators
(AEDCs) at EPA level. These AEDCs are coached by Food and Nutrition officers and other relevant
specialists at district level. The nutrition focus of agricultural extension will be made tangible in three
ways:
By integrating a nutrition perspective in all GAPs promoted and documented by the Programme
(see component 2.1);
By promoting diversified and improved nutritional production and consumption (integrated
homestead food production);
By supporting the introduction of improved cooking stoves, combined with nutrition education.
109. Integrated homestead food production (IHFP) is to facilitate adequate food consumption at
household level. IHFP is an approach to improve diverse food access (primarily proteins, vitamins and
minerals) and to share nutrition information. Nutrition education will encourage adequate
consumption. Capacity will be developed by supporting training of trainers who can roll-out the toolkit
on IHFP to the villages. PRIDE will collaborate with FAO on this activity.
110. Improved cooking stoves. Rural communities cook over open fire, using locally available
firewood. This practice is detrimental to the already scant forest cover; has bad effects on health due
to smoke combined with lack of ventilation; and requires mainly women and children to spend scarce
time on fuelwood collection. Improved cooking stoves form a climate-smart answer to these problems.
Improved cooking stoves increase the efficiency of fuel wood use by up to 60% compared to open
fires, and thereby reduce the need for women and girls to gather and carry heavy loads of firewood
over long distances. Cleaner, more efficient cooking stoves reduce exposure to smoke. The promotion
of improved cooking stoves forms a generic measure for sustainable land management.
111. From a nutrition perspective, time saved in fuel collection and cooking provides an opportunity
to invest time in the process of cooking itself. During the session that promote the improved cooking
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stoves and during subsequent sessions on maintenance; training will be imparted on nutrition and
food preparation. Women form the target group so female extension workers are required.
112. PRIDE’s promotion of improved cooking stoves aims to ensure that a private sector able to
produce and market the materials and support services for improved cooking stoves emerges.
Service providers involved in the promotion of improved cooking stoves need to demonstrate how
they intend to establish improved cooking stoves as a regular product in the market. The possible
availability of carbon credits for improved cooking stoves – reflecting their impact on the reduced use
of fuel wood – may be considered to improve the business case for local production and supply.
D. Lessons learned and adherence to IFAD policies
113. Overall, the performance of the country programme has been moderately satisfactory, but
plagued by slow implementation related to capacity shortfalls in government institutions. Other donor
programmes add to the pressure on capacity of all ministries. As the size of the IFAD portfolio grows,
these limitations will become more important and necessitate flexibility in terms of outsourcing
activities and a high level of implementation support. The experience in IRLADP with a stand-alone
unit coordinating the project on behalf of the Department of Irrigation offers an interesting alternative
for programme management.
114. Within the IFAD portfolio, a number of lessons have been learned and their design implications
are summarised. The most relevant lessons for PRIDE have been summarized below, while appendix
3 presents a full overview of the learning from previous IFAD interventions.
Table 5: Lessons learned
Lesson Learned Design Implications
A dedicated full-time coordination
team is required immediately on
start-up for efficient and timely
implementation of activities.
The Programme will be implemented by a stand-alone Programme
Coordination Office (PCO) established under the lead Ministry and
staffed by dedicated and highly qualified personnel with designated
authority. PCO staff are either seconded from government or
recruited from the labour market. Secondment and recruitment of
key PCO staff requires prior consent from IFAD.
Land tenure for all smallholder
farmers selected to take part in
irrigation is to be secured prior to
implementing the works.
Prior to investment GoM / NGO, documented land tenure and plot
allocation agreements will be prepared.
Land access should be secured
throughout the year for all
beneficiaries (male, women and
youth) of a scheme to enable up to
three irrigated crops per year.
Establish a WUA, whose members are all intended scheme
beneficiaries, and confirm that it has documented long-term land
leases or customary land rights, which are subsequently assigned
transparently and equitably to its members.
Water rights need to be allocated to
each WUA and enforced up and
downstream.
Support WUAs to obtain legal water rights from regulatory
authorities prior to implementation.
Water available at the end of the dry
season may not be enough for the
whole command area.
Obtain data on dry season river flows and ensure that the WUA
adopts internal rules to give equitable access to land and water
resources in the dry season.
Many pumped irrigation systems
have been abandoned by
smallholder farmers.
Give priority to gravity-fed schemes. Introduce advanced (and
water-efficient technologies) only where recurrent costs are easily
recovered from ascertained incremental income generated by
scheme and the market.
GOM is not in a position to
contribute substantially to scheme
O&M.
The irrigation scheme needs to be technically, economically and
environmentally sound, and are to be operated and maintained by a
WUA which is able to generate funds for O&M from their
membership. Linkage to markets is essential to allow the WUA to
collect sufficient fees.
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Lesson Learned Design Implications
Smallholder farmers require support
to enable them to respond to market
demands and to select high value
crops that give optimum returns.
Make use of RLEEP experience and capacities to support
smallholder farmers on value chains, market linkages and
commodity selection.
Unit costs to develop and construct
irrigation schemes are medium in
the range of USD 8,000 – 10,000/ha.
A return on investment is only possible if the irrigated command
areas are used for the production of cash crops with a viable
market.
Design schemes in response to
demands of the beneficiaries and
bearing in mind a realistic
beneficiary contribution in both cash
and kind, during construction and for
O&M.
Involve WUAs in planning, design and construction of schemes –
including the GOM/NGO decision – and build their capacity with
respect to scheme operation, including cost recovery; and
development of a business plan.
Soil and water conservation
measures in the upstream
catchment areas help sustain
irrigation infrastructure.
Address critical upstream concerns during planning and design; and
produce ESMPs with budgets for implementation.
115. PRIDE will be implemented in compliance with IFAD’s Policy on Improving Access to Land and
Tenure Security, the Voluntary Guidelines on the Responsible Governance of Tenure of Land,
Fisheries and Forests and the Framework and Guidelines for Land Policy in Africa. Before supporting
any intervention that might affect the land access and use rights of communities, PRIDE will ensure
that their free, prior and informed consent has been solicited through inclusive consultations based on
full disclosure of the intent and scope of the activities planned and their implications. PRIDE is
compliant with IFAD’s Natural Resources Management Policy and Climate Change Strategy. Climate
change adaptation measures are integrated into Programme activities to address climate risks and
the potential multiplication of effects, such as damage to landscapes and infrastructure. See the
safeguard documents listed in appendix 12 for a detailed discussion on compliance.
III. Programme implementation
A. Approach
116. PRIDE aims to enhance resilience of rural communities to climate-, food security and economic
shocks. PRIDE does so by mobilising partners and resources for communities in scheme cluster
areas; so that these communities – with the support of the partners mobilised by PRIDE – can
harness natural resources for agriculture; build competence in production and profit from better
market linkages. The approach applied in PRIDE comprises a phased development process –
identification, preparation, implementation and review – which is kept on track by project management
and by and mechanisms to safeguard positive environmental and social outcomes.
117. GoM has limited capacity to manage programmes of the size and magnitude of PRIDE. The
progress of Programme implementation by the Department of Irrigation (DoI) would be hampered by
its limited implementation readiness. To redress this fact, a stand-alone unit will be set-up and
mandated under the management purview of DoI, to coordinate project implementation. In this way,
mobilisation of partners and resources can take place swiftly and under a full-time dedicated
oversight. In doing so, PRIDE follows the model used in IRLADP.
Development process
118. Identification. The engagement of PRIDE with the communities goes through several stages,
with results and responsibilities evolving at each stage. Scheme cluster area identification has been
part of the design of PRIDE and reflects the priority setting in the Government’s Irrigation Master Plan
and Investment Framework (IMPIF, see section II.A). During the development of the IMPIF portfolio,
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interactions with scheme beneficiaries and concerned communities have – in order to not raise
expectations – been kept at a minimum. PRIDE will have to significantly invest in interactions with
communities in order to increase the commitment to the proposed developments.
119. Preparation. The first interaction between PRIDE and the communities will take place during
the preparation stage. This stage aims to define PRIDE interventions in the scheme cluster area. The
interventions combine service providers, community representatives and agreed actions. The
interventions are documented in investment agreements. Each agreement specifies which resources
and actors are mobilised (or assisted to mobilise) by PRIDE, and which groups or organisations will
contribute on behalf of the community. PRIDE will help mobilise concerned government agencies at
District level, and will outsource services that presently cannot be supplied by the government
agencies. The communities will initially be represented by their leadership and their existing structures
at village level in a ‘combined village committee’. This committee will be asked to select beneficiaries
for planned activities and to assist these to form groups or organisations that are responsible (in case
of complex activities such as irrigation scheme development) to contribute to the further preparation of
an activity; and (for well-prepared activities) to contribute to the subsequent implementation. The table
gives an overview of the activities that are to be prepared.
Table 6: Entities and activities during preparation
Service agencies Community
representatives
Activities
District Executive
Committee
Multi-disciplinary
CPIA teams
Traditional
Authorities
Village
Development
Councils
Combined Village
Committee
Confirmation by traditional authorities and village development
committees to support development of irrigation, soil & water
conservation, good agricultural practices and market linkages
Selection of community representatives who help implement
the activity (WUA formation committee, conservation groups,
lead farmers)
Keeping general oversight of progress
Irrigation staff (ISD
and District)
Design
Consultants
Social organisers
District Land Office
WUA Formation
committee
Traditional
authorities
Land right holders
Land and Water Use agreement (draft) formulation
Irrigation staff (ISD
and District)
Design
Consultants
Social organisers
WUA Formation
committee
WUA beneficiaries
Water Users’ Association Constitution and Bye Laws (draft)
formulation
Scheme Implementation Agreement (draft) formulation
120. Implementation. Once preparations are completed and agreements signed; implementation
will follow. PRIDE will help mobilise concerned agencies and outsource specialised tasks to others.
The communities will form groups for each activity under implementation. The table gives an overview
of the different entities that interact in the course of the programme, and of the activities that they will
implement.
Table 7: Entities and activities during implementation
Service agencies Community
representatives
Activities
Irrigation staff (ISD and District)
Design and supervision consultants
Social organisers
Contractors
WUA including sub-
committees
Construction, hand-over
and management of
irrigation scheme
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Service agencies Community
representatives
Activities
MOAIWD extension staff
Specialised service providers
Other agencies locally represented
Lead farmers and farmer
field schools
Introduction and replication
of good agricultural
practices on irrigated and
rain-fed lands
MOAIWD extension staff
Specialised service providers
Other agencies locally represented
Traders and wholesalers
Commodity platforms
Lead farmers and farmer
business schools
Producer groups
Establishment and
improvement of market
linkages
Irrigation staff (ISD and District)
Design and supervision consultants
Social organisers
Contractors
Conservation groups Establishment and
exploitation of erosion
protection areas
121. Joint Review is a recurrent ‘stage’. For each major activity, there will be an annual review. This
could comprise an inspection for infrastructure, or a participatory assessment for other activities.
Results will be reported not only to the group or organisation directly concerned but also to the
community representatives involved during the preparation phase. In this manner, the achievements
and performance of groups and organisations will continue to be reviewed by the community from
which they were formed.
Table 8: Entities and activities during joint review
Service agencies Community representatives Activities
District Executive Committee
Review teams
Traditional Authorities
Village Development Councils,
Combined Village Committee,
Activity-related groups
Periodic review and
adjustment of agreed
actions
Environmental and Social Safeguard Mechanisms
122. Environmental and social management framework. Based on IFAD’s 2015 Social,
Environmental and Climate Assessment Procedures (SECAP), PRIDE has been classified in
environmental assessment category A, with a ‘moderate’ classification for its climate risks. Category A
is reserved for programmes that may have significant adverse environmental and/or social
implications that: (i) are sensitive, irreversible or unprecedented; (ii) affect an area broader than the
sites or facilities subject to physical interventions; and (iii) are not readily remedied by preventive
actions or mitigation measures.
PRIDE’s category A classification is based on the notion that it promotes irreversible land use
changes by development of irrigated areas, including land levelling and new agricultural land;
and that it will alter the immediate hydrology of the intervention areas. Resettlement may be
required, especially for those scheme cluster areas where construction of a dam and reservoir
is part of the design.
The Programme faces a moderate climate change risk, as the interventions are expected to be
vulnerable to floods and droughts that are likely to increase in frequency and which may impact
agriculture production, irrigation infrastructures, and ultimately the farmer communities’
livelihoods. Information available on climate risk for Malawi informed the design of PRIDE and
adaptation measures have been incorporated to be financed mainly by the Adaptation for
Smallholder Agriculture Programme (ASAP).
123. The Programme’s Life File (see appendix 13) includes the Social, Environmental and Climate
Change Assessment Review Note (SECAP-RN), the Programmes Environmental and Social
Management Framework and the Resettlement Framework. This section reflects the guidance
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provided by those documents. The figure overleaf shows the interrelatedness of the generic policies,
the safeguards framework for the overall PRIDE programme and the procedures in force for the
individual schemes and scheme cluster areas.
Figure 4: Environmental and social safeguards framework and procedures
124. The exact intervention in the 15 scheme cluster areas will only be known during Programme
implementation; but for most – if not all – scheme cluster areas it may be required to develop a full
Economic and Social Impact Assessment (ESIA) and subsequent management plans in line with
IFAD’s social, environmental and climate assessment procedures as well as with the national
regulations in Malawi. To determine the need for a full ESIA and related management plans, such as a
Resettlement Action Plan, screening and scoping will be carried-out during the preparation stage. The
screening note will provide guidance on the likely environmental and social risks and will enable the
Environmental Affairs Department to confirm whether an ESIA is required, and whether and what
Environmental and Social Management Plans are needed (e.g. pest management, resettlement, dam
safety, etc.). For schemes not having category A social and environmental impacts, the screening may
be directly followed by the formulation of an Environmental and Social Management Plan. Detailed
guidance on screening, ESIA, ESMP and the recurrent annual audit of the environmental
management is included in the ESMF and RAF included in the Programme Life File (appendix 13).
The costs for screening, ESIA, ESMPs (including RAP) and annual audits are factored into the
programme budget.
125. Environmental and Social Impacts Assessments and related management plans will be
prepared for those schemes where the screening exercise indicated this need. The outcomes will be
reviewed by the scheme cluster area communities, and be submitted for review and approval to the
Environmental Affairs Department. The management plans will be publically disclosed and subject for
consultation with the communities. Measures from the management plans will be fully integrated in
the schemes. The exact measures will depend on the location-specific situation, but the following
impacts and mitigations are likely to be associated with some of the larger schemes, including those
involving dams:
The risk of excess withdrawal of water from a river would impact on downstream water users
and on maintaining an adequate habitat for aquatic species. The recent water resources
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assessment6 analyses present pressures on Malawi’s catchments and enables the MOAIWD
wing responsible for licensing water withdrawals to curb excess water use;
Construction of canals and head works – and the impoundment of water in reservoirs – will
affect existing rain-fed land resources and possibly homesteads. Following the IRLADP
experience with land and water agreements, loss of homestead and land access will be
compensated by giving project affected people a preferential share in the irrigated command
area. A governance structure is needed to ensure compensation is addressed and grievances
will be heard (see III.A);
New physical infrastructure may be vulnerable if not well-sited or not designed bearing in mind
present and future climate impacts. New infrastructure may be damaged and the benefit flow
may stop. This requires good engineering as well as climate proofing infrastructure. Lessons
need to be learned from the EU-funded project on infrastructure designs that started recently;
Construction works itself may form a start for land degradation processes. Contract stipulations
will be drafted that enforce due diligence in site development and use of borrow-pits. Some
training will be available to orient contractors on sound environmental management.
126. The development of measures to mitigate social and environmental impacts and the
implementation thereof, will be reported upon annually, by a dedicated officer in the PCO; and the
report – as well as on-the-ground reality – will be subject to an independent annual audit. Both the
PCO report and the audit will be submitted to IFAD and to the Programme Steering Committee.
127. Resettlement and compensation. Where resettlement or economic displacement is
envisaged, SECAP requires that the principles of ’do no harm’ and ‘free, prior and informed consent’
(FPIC) are adhered to at all times and for all beneficiaries for any intervention that might affect the
land access and user rights of communities. As per the practice introduced by IRLADP, the
detrimental impacts on project affected people will be compensated through the degree of individual
beneficiary contribution to scheme construction and through the allocation of rights to cultivate
irrigated land. Thus, right-holders on the original land will receive a larger allocation, as will people
who have lost land or property due to canal alignments, headwork’s, dams or reservoirs. Crop loss
during construction would be compensated by a reduced beneficiary labour contribution to scheme
construction. The Land and Water Agreement is prepared between the Water Users’ Association and
the communities leadership, with due involvement from the department of land, and support in terms
of survey works and mapping by the Programme.
128. People who feel that they are negatively affected while their claim is not (adequately)
addressed should have resort to a grievance mechanism. A grievance mechanism is included in the
management plan for each scheme, and involves a three-month period during which grievances can
be submitted to a 3-member grievance board set-up by the combined village committee (1 member),
the Water Users’ Association (1 member) and the District (1 member). The Land and Water
Agreement can only be finalised after the grievance board confirms settlement of all grievances.
129. Disclosure of scheme information. In compliance with IFAD’s environmental procedures and
Malawi's ESIA regulations, before a scheme is approved, the applicable documents (ESIA, ESMP
and/or RAP and associated management plans) must be made available for public review at a place
accessible to local people (e.g. at a local government office), and in a form, manner, and language
they can understand. It is recommended that the ESMPs and RAPs be disclosed in the same location
that the community development plans are made public to ensure that there is wide access to the
documents at least one month before the expected date of starting the works.
B. Organizational framework
130. PRIDE will mobilise and outsource services that work with the communities and their
representatives. The PRIDE Project Coordination Office (PCO) therefore is not directly involved in
6 Government of the Republic of Malawi, Ministry of Irrigation and Water Development, Second National Water
Development Project (NWDP II), Water Resources Investment Strategy, Component 1 – Water Resources Assessment; draft report, 2015.
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implementation; but plays its role at a higher level: It ensures that adequate services are mobilised;
either by enabling government agencies, such as the District irrigation, agriculture and land resources
staff to intensify service delivery to the communities in the scheme cluster areas; or by engaging
(specialised) services, such as design and supervision engineers, contractors, crop extension
services and market partners. This arrangements reflects the positive lessons learned from IRLADP
and enables the Programme to set a brisk pace of implementation.
131. Programme Management. The Programme will be implemented by a stand-alone Programme
Coordination Office (PCO) established under the lead Ministry and staffed by dedicated and highly
qualified personnel who are from government or recruited from the labour market. Recruitment of key
PCO staff requires prior consent from IFAD. The PCO will include inter alia a senior Programme
Director, a Procurement specialist, a Financial Management specialist, a Water Users’ Associations
specialist, an Environmental Coordinator, a Gender and Targeting Specialist, an Irrigation Engineer,
an Agriculture and Value Chain Specialist and a Planning, Monitoring and Evaluation specialist. The
latter will be charged with Knowledge Management as well. Given the spread to the northern and
southern regions, there will be two Programme facilitation offices, staffed by a Coordinator for two
ISDs. Appendix 5 presents the full staff list. Figure 5 shows that the PCO functions under a single
command, with the regional offices tasked to facilitate the functioning of the technical coordinators of
the PCO.
Figure 5: Structure of the Programme Coordination Office
132. The PCO will mobilise agencies – either by enabling existing services or outsourcing required
services – to work with the communities in the scheme cluster areas. The work of the local agencies
of MOAIWD (irrigation, extension) and the Department of Land will be facilitated by investments in
transport, communication and service delivery. Where these agencies lack adequate numbers of staff
or miss the prerequisite competence, the PCO will engage other service providers, such as NGOs
working on agricultural development and specialised engineering services.
133. The PCO is the management team for the PRIDE programme. Good interplay is prerequisite for
the success of PRIDE, as all PRIDE primary outputs and processes cut across the functional
specialisation of the PCO members. For the development of the irrigation schemes, for example, the
WUA Specialist is responsible for defining and adhering to the requisite community decision-making
procedures and for WUA capacity building, whereas the Environment Coordinator helps shape
consultation and prior consent on land consolidation, environmental assessment and mitigation. Both
are informed by the technical specialist (in this example the irrigation engineer) on the steps in the
engineering process, from detailed design to hand-over and prepares a planning per scheme cluster
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area based on all these procedures. The irrigation engineer is responsible to define all technical
targets (irrigated area, benefitted farmers, irrigator capacities, beneficiary contributions, agency and
programme contributions, etc.) and to define the responsibilities of agencies, service providers and
water users. The Procurement Officer prepares, based on the inputs given, terms and conditions for
outsourcing and for agency involvement; and translates this into legally binding agreements. The
procedural planning by the WUA specialist, the targets defined by the technical specialist and the
conditions set by the procurement officer, along with associated costs are recorded and reviewed by
the Planning, Monitoring and Evaluation Officer. He/she keeps abreast of progress and issues
warnings within the PCO if progress is behind or below target. He/she also keeps an active eye on the
risks associated with the programme. The Programme Director has the overall overview, is
responsible for all decisions (though at times delegated to his/her staff) and maintains liaison with the
steering committee, parent ministries and representatives of IFAD. Similar descriptions can be given
for the construction of soil- and water conservation infrastructure, for the establishment of good
agricultural practices and for the development of market linkages.
134. The following table gives a general description of the roles of the PCO professional staff and
how their duties combine for each process and for each outcome of PRIDE.
Table 9: PCO staff roles and duties (generic)
Process steps /
Outputs
Procedural
specialists
(WUA specialist.
Environment
Coordinator)
Technical
specialists
(irrigation,
crops and
value chains)
Procurement
Officer
PME
specialist
Programme
Director
Process 1:
Preparation
Define and
maintain process
steps,
stakeholders
involvement and
time frame
Define and
supervise
outputs required
from service
providers
(outsourced and
agencies)
Define contract
conditions for
outsourced
services and select
the required
procurement
method;
Define modalities
and terms of
agreement for
enabling of agency
services
Review planned
progress in
terms of time,
funds and
outputs; Signal
delays and
monitor
programme risks
Ensure
coherency in
management;
Take and
communicate
key decisions
Process 2:
Implementation
Process 3: Review
Outcome 1:
Infrastructure
Outcome 2: Good
Agricultural
Practices
Outcome 3: Market
linkages
135. The WUA specialist will be assisted by a Gender and Targeting specialist, who is to secure that
mobilised agencies deliver their services effectively to the intended target group, with preference for
the prioritised categories of food-deficit poor, women and youth. An Environmental Coordinator is
added to the PCO team to ensure environmental and social due diligence through-out all stages of
programme implementation.
136. Coordination (scheme cluster areas). PRIDE will coordinate its entry in an area with existing
leadership (chiefs) and with existing structures at village level. The latter are organised in Village
Development Committees. For ease of organisation PRIDE’s contribution across a scheme cluster
area, the chiefs and VDCs will be asked to convene a combined village committee, that will provide
oversight for the activities that PRIDE and the communities engage in. The combined village
committee plays a key role at the initiation stage and in reviewing programme progress. Detailed
preparations (notably for land consolidation and irrigation scheme preparation) will be delegated to a
formation committee for the Water Users’ Association. Implementation of more straightforward
activities (soil- and water conservation, good agricultural practices and market linkages) will be
handed over to beneficiary groups and lead farmers. The specialised services mobilised by the
PRIDE PCO will engage directly with these beneficiary groups.
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137. There is a possible imbalance between the combined village committee and the WUA formation
committee – and later on the executive committee – of the Water Users’ Association. The former is
attributed a governing role, whereas the latter can – due to its large membership and the investments
associated with it – practically overrule or ignore the combined village committee. At the same time,
dependencies exist as well: the combined village committee is better placed to coordinate land issues
with the chiefs, and it is more closely associated with the normal port of call for government services.
The WUA, in its turn, is a vessel for making use of the new opportunities associated with the
development of irrigated agriculture. If given sufficient leeway, the WUA – and the irrigation system it
manages – can be a game changer in local development.
138. The interplay between the local groups, the WUA and the combined village committee is an
important factor for the success of the PRIDE interventions. The Programme Implementation Manual
(PIM) will elaborate the procedures and routines to be established for a constructive interplay.
139. Coordination (regional). For reasons of efficiency, PRIDE scheme cluster areas are
concentrated in a northern and a southern hub. PRIDE will rely on – and where need be – facilitate
the services of agencies represented here; and may engage additional service providers if gaps are
observed. This requires a close coordination with the services already on the ground: notably the
regional levels of MOAIWD, the Ministry of Land Resources and District coordination structures.
140. PRIDE will associate with the District Executive Committee and their Area Development
Committees. PRIDE regional coordinators will be charged with the responsibility for the exchange of
information at this level; and for noting issues emerging. The bringing in of additional service providers
will be discussed at this level, in order to define well their scope of intervention. The involvement of
PRIDE in the existing coordination structures at regional level will be elaborated in the PIM.
141. Coordination (national). National coordination will be ensured through the Agriculture Sector
Wide Approach (ASWAp) that is coordinated by MOAIWD. This mechanism precludes overlaps in
programme preparation, implementation and funding, and aims for a regional balance in the activities
of the Ministry. The PCO of PRIDE will endeavour to inform the ASWAP about programme activities to
ensure full alignment with government policies and to report efficiently on results and lessons learnt.
However, PCO shall be accountable to the Programme Steering Committee only, which will provide
the oversight of PRIDE (see next paragraph). In addition; close coordination will take place with the
other programmes in IFAD’s portfolio. Both SAPP and RLEEP have tested approaches for good
agricultural practices and market linkages respectively, and PRIDE will fall back on their experience
and contacts as and when possible. As the overlap between PRIDE, RLEEP and ASAP is limited in
time and regional coverage, no cross-funding is foreseen at design, but good coordination will always
ensure an efficient use of resources. Specifically, PRIDE will use tested GAPS and will work with
commodity platforms already established.
142. Programme Oversight. The Ministry of Finance, Economic Planning and Development will
formally represent the GOM on matters pertaining to the Programme. The Ministry of Agriculture,
Irrigation and Water Development will be the lead Ministry for the Programme. Day-to-day oversight
will be vested in the Department of Irrigation, while a Technical Advisory Team will be established
representing departments concerned with the project implementation, including Land Resources,
Extension, Research (under MOAIWD), as well as the Department of Land (Ministry of Lands,
Housing and Urban Development), the Environmental Affairs Department (Ministry of Natural
Resources, Environment and Mining); the Debt and Aid Department of the Ministry of Finance,
Economic Planning and Development; and others as needed. Strategic oversight will be provided by a
Programme Steering Committee (PSC) comprising senior representatives of concerned Ministries,
under the chairmanship of the PS (Irrigation & Water Development) of the Ministry of Agriculture,
Irrigation and Water Development. From IFAD-side half-yearly supervision missions will take place;
and a provision will be made for a limited number of implementation support missions.
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C. Planning, M&E, learning and knowledge management
143. This section describes the primary scope of the PCO’s Planning, Monitoring and Evaluation
Officer. He/she will have to document the agreements and plans that are formulated in the course of
PRIDE implementation; and will have to keep the PCO team informed of progress at the level of
actions, effects and impacts. He/she will have to ensure that lessons are drawn from implementation;
and applied in the subsequent period as well as in the smallholder agriculture sector as a whole.
Planning
144. The overall budget combined with the Logical Framework (see table at end of Executive
Summary) form the basic tools for planning. Recurrent updating of both – based on information
obtained from monitoring and planning – is required to confirm that progress is on target and to
ensure that means meet ends. This means that the PCO finance officer and the PME specialist will
work closely together to keep the PCO’s plans up to date.
145. In addition, per scheme cluster area, the work processes will be charted; both in terms of
required activities, as well as in terms of time. These timelines form a starting point for annual
planning, as they indicate more realistically what can be achieved in a year.
146. Plans need to be translated into resource allocations and to this end, annual work plans and
budgets (AWPB) are prepared. The AWPB allows the GOM to include adequate resources in its
budget and enable IFAD – together with good financial management – to release budgets in a timely
manner. PCO staff will be trained in the preparation of AWPBs.
Monitoring and evaluation
147. The act of monitoring and evaluating by the PCO comprises the collection, interpretation and
combination of information and data into clear-cut conclusions on the progress and likely success of
the programme. The following paragraphs will discuss the various information carriers that are
employed by the PCO.
148. Management information system. The Logical Framework and the Annual Work Plans and
Budgets define activities, results, targets and progress indicators; as well as risks. The management
information system (MIS) collects key data on the status of Logical Framework and AWPB indicators
throughout the duration of the Programme, and processes this into tabular and visual information. The
MIS answers the questions (i) whether PRIDE activities progress as targeted; and (ii) whether the
PRIDE outputs can be attained within the available time and resources. The MIS uses standard
spreadsheet programming or dedicated software to collect and process data from various information
sources in PRIDE. It integrates financial data in order to gauge critical unit costs, and in order to
predict resource depletion and the likely liquidity requirements.
149. Monitoring of risks is an integrated part of the MIS. To this end, indicators will be developed that
gauge whether the assumptions on which the programme is based, hold. The risks are discussed in
section III.F and derive from the Programme’s Logical Framework.
150. Results and Impact Management System. The most dynamic part of the MIS relates to
activities and outputs; but secondary data on impacts, effects and outcomes will be collected using
IFAD’s Results and Impact Management System (RIMS). The PCO will compile a RIMS report
annually and submit this to IFAD (normally scheduled for the end of March). The RIMS employs three
levels of indicators: Outputs, outcomes and impacts. Relevant indicators have been included in the
Programme’s Logical Framework. First-level RIMS indicators (outputs) would derive from the MIS and
are produced at least annually. When second-level results (outcomes) become available, these will be
reported with the first-level RIMS results. Third-level RIMS results (impact) will be reported twice; once
at midterm and once at completion.
151. Benchmarks, mid-term and completion surveys. In order to capture information on PRIDE
effects and impacts, separate studies are undertaken to gauge how successful PRIDE is vis-à-vis its
overall ambitions. To this end, studies are undertaken to assess the situation of the target group at
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begin, midway (year 3) and end of the programme period. Outcomes of these studies will inform the
RIMS. The baseline studies and follow-up surveys combine collection of basic demographic and
socio-economic data with application of the Multidimensional Poverty Assessment Tool (MPAT), in
order to understand and gauge impacts on poverty reduction. The Women Empowerment in
Agriculture Index (WEAI) will also form part of the baseline and follow-up surveys in each scheme
cluster area. The WEAI helps track changes in women’s empowerment levels as a direct or indirect
result of an intervention.
152. Annual Audit (social and environmental safeguards). As part of the procedures for
environmental and social due diligence, an annual audit will be conducted of the progress,
achievements and issues with respect to safeguards. The audit procedures are included in the
relevant guidance documents (see appendix 13).
153. Studies. Good monitoring and evaluation requires understanding how an intervention
translates into an impact on poverty, nutrition and resilience. To this end, PRIDE has funds to
undertake in-depth studies into the mechanisms that are expected to yield impact on the target group.
These studies include – but are not limited to:
Tracer studies on land tenure – as explained in appendix 3 the access that smallholder farmers
have to land resources is in essence insecure. The PRIDE intervention aims to enhance the
reliability of and participation in tenure arrangements for irrigated lands. In this, use is made of
the experience of IRLADP. As the access to land is of prime importance to how benefits of the
Programme are distributed, recurrent studies into tenancy arrangements their dynamism and
their influence on crop husbandry will be carried out on all PRIDE schemes; as well as on
selected completed schemes from IRLADP. The studies will be designed and reviewed in close
cooperation with the Global Land Tools Network through their partnership with IFAD under the
regional ‘Tenure security learning initiative’. This will help monitor the Land and Water
Agreements drawn up under PRIDE and help monitor how land access develops over the years
and how – if at all – it affects agricultural practices, such as conservation agriculture and use of
fertiliser.
Thematic studies, especially into the dynamics evolving in the irrigated command areas. What
are critical bottlenecks to the irrigated agriculture; what are solutions developed by the WUAs
and irrigating farmers to issues such as seasonal water shortage, rotation, block cultivation,
cost recovery etcetera.
154. Reviews and participatory assessments. There is only so much that can be captured by pre-
defined indicators and standardised data formats. To help make the information for planning,
monitoring and evaluation ‘rich’, reviews and participatory assessments are part of the PRIDE M&E
repertoire. Annual reviews per scheme cluster area will gauge achievements against plans and
agreements. Reviews will cover the status of new infrastructure, the arrangements for operation and
maintenance, the dissemination and utility of newly introduced good agricultural practices and the
development of market linkages. Findings will be presented to the related actors, and their views will
be sought on the outcomes, and on the adequacy of the approaches followed. Participatory
assessments can take place at all levels of programme implementation (i.e. activity, scheme cluster
area, regional and national. Here the floor will be given to beneficiaries, partners, PCO staff or a
combination thereof to review (aspects of) PRIDE implementation. Reviews and participatory
assessments serve a dual purpose: they help collect experiences and views that enrich the
management information (e.g. status of infrastructure after hand-over; beneficiary satisfaction) and
they initiate a learning exercise that aims at re-defining Programme practices.
155. Reporting. Monitoring and evaluation is a void exercise if not reported upon. Monitoring and
evaluation outcomes and revised plans will be reported upon in semi-annual progress reports, which
are produced within a week from the completion of the period under review. In addition to narrative,
tabular and graphic progress information, the progress reports contain a revised planning for the
upcoming six months and a section where the PCO recommends major adjustments in the
programme to address any bottlenecks experienced, or opportunities observed. These
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recommendations will serve to guide the agenda of the Project Steering Committee and will provide a
point of reference for the semi-annual supervision missions.
Learning and knowledge management
156. PRIDE aspires to be relevant for the smallholder agriculture sector as a whole. This determines
that lessons from experience have to be drawn and shared with stakeholders in the sector as a whole.
PRIDE is not aimed at the development of new policies and strategies at the national level, but aims
to inform this level of relevant experiences and good practices. The contribution of PRIDE to the wider
policy debate in the smallholder agriculture sector comes in the form of factsheets, which document
lessons learned.
157. Factsheets find their origin in the monitoring and evaluation system described above, and
especially in the reviews and participatory assessments. Here, important lessons are identified and a
first version of the lessons is described. PCO staff and hired hands where needed, elaborate the
lesson learned in a draft factsheet. This is a concise description, with reference to additional
information and informants. The PCO will develop a standard format for the factsheets.
158. Draft factsheets are reviewed and improved upon through small expert workshops with
concerned stakeholders. The idea is to confirm the relevance of the lesson learned, to improve upon
the description and to contemplate the implications of such a lesson for the policy framework for
smallholder agriculture. Factsheets that do not create a stir, will not be published and disseminated.
159. Once factsheets are finalised, they will be disseminated using the websites of the Programme
and of the MOAIWD and, where possible, websites of relevant institutions, such as research
agencies. Moreover, the factsheets will be presented in national workshop on key programme themes
(climate-smart agriculture, value chains, land tenure, smallholder irrigation).
D. Financial management, procurement and governance
160. A financial management assessment that was carried out as part of design is included in
appendix 7. The inherent financing risk is considered to be at medium level. Transparency
International’s corruption perception index scored Malawi at 34, 37 and back to 33% in 2012, 2013
and 2014 respectively. IFAD’s Rural Sector Performance score regarding accountability matters and
corruption in rural areas scored Malawi at 3.75 (in 2014) which translates into a medium risk. Recent
trends however indicate an increased risk. Entity level financial management was assessed on the
operations of SAPP and IRLADP. Overall, the assessment concludes that the proposed financial
management arrangements for PRIDE to be at medium risk. The two projects analysed provided the
required inputs to suggest measures (see appendix 7 ) including operations of the Government
Integrated Financial Management System (IFMS), use of dedicated project accounting software,
specifically recruited programme finance staff and clear banking arrangements. The set-up of
accounts and their management through an off the shelf accounting software such as TOMPRO is
considered to be minimum standard. Accounting will be linked to the M&E system, requiring that
TORs of the Financial Management Team and the M&E expert be linked on these aspects. The
proposed arrangement will be managed by a dedicated PCO under the oversight and guidance of
MOAIWD. These arrangements satisfy IFAD’s minimum requirements for a robust and sound financial
management with a mitigated risk level subsequently assessed as low. In terms of fund flow, it is
suggested to place the designated account at a commercial acceptable by Government and IFAD, in
view of the problems observed with accounts at the central bank. Detailed arrangements will be
worked out in the draft Programme Implementation Manual (PIM).
161. A procurement assessment was carried out as part of the design on IRLADP operations (see
appendix 8). Malawi has a robust legal and institutional framework for public procurements. The
Public Procurement Act introduced a new legal framework governing public procurement in Malawi.
The framework provided for the establishment of the Office of Directorate of Public Procurement
(ODPP), which, since becoming operational, has taken the lead on reorganising public procurement
reform. Among the changes to the procurement system introduced by ODPP was the complete
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decentralisation of the procurement process to the level of each public entity. The legal and regulatory
framework is sound for efficient public procurement. The Public Procurement Act and Regulations
adequately establish the institutional framework required to support public procurement, the stages of
the procurement process, the main methods of procurement and their conditions for use, and the
conditions for review and auditing.
162. Despite these overall encouraging trends, country procurement assessment by ODPP with
UNDP support found issues that still need to be addressed to ensure that procurement processes in
practice are fully compliant with the legislative and regulatory framework. Mitigations have been
suggested in appendix 8. There will be a Procurement Specialist in the PCO to ensure compliance
with statutory procedures. For PRIDE, it is recommended that the GOM procurement systems will be
used. Thus the procurement planning should be according to the GOM planning calendar. Due to the
medium inherent risk ranking of the GOM procurement systems obtained at various assessments; the
IFAD prior review thresholds for PRIDE would be USD 50,000 for goods and services and USD
100,000 for works to start with.
163. Transparency, governance, anti-corruption. In collaboration with IFAD and GOM, a
Governance and Anti-Corruption Framework will be elaborated during the first year of implementation
to mitigate the risk of corruption and promote effective utilisation of project resources. The Framework
will include: (i) the programme operations and financial manual articulating the type of internal controls
and administrative systems to be established to guarantee transparency and accountability; (ii) the
computerised accounting system that will substantially reduce the scope for human error; (iii) the risk-
based implementation reviews of programme financial management and staff; and (iv) the back-up
procedures kept on the PCO’s computer server to avoid the loss or damage of financial data. PRIDE
will also include a system audits in the TORs of the auditors and in the supervision plan. Internal audit
is considered weak and maybe outsourced to an audit firm.
164. IFAD zero tolerance policy for corruption and fraud urges persons observing concerns of
irregular practices in IFAD funded projects to report to the IFAD Office of Audit and Oversight through
any of the following means:
By telephone: +39 0654592888
By confidential fax: +39 0654597888
By confidential email: [email protected] or by using the online complaint form
In person or by mail to: IFAD - Office of Audit and Oversight (AUO): Investigation Section - Via Paolo Di Dono, 44 - 00142 Rome, Italy
E. Supervision
165. PRIDE will be jointly supervised by GOM and IFAD every six months. Timing of the
supervisions will be coordinated with the production of the six-monthly progress report, so that the
supervision missions can gauge the situation at the same cut-off dates and thereby provide an
additional perspective on progress to the PSC meetings; which hence will have to be planned after
the supervision missions.
166. Supervision missions will have a variable composition, but fiduciary reviews will be a recurring
element in each. The fiduciary specialist will be tasked with both the identification of problems as well
as with finding and/or initiating solutions to problems encountered. The aim will be to resolve all
accumulated issues in finance and procurement during or shortly after each supervision mission.
Terms of reference for the supervision missions will be prepared by the IFAD country portfolio
manager.
167. Nest to supervision, budget is available for a limited number of implementation support
missions. These will be fielded in response to specific problems encountered during implementation
and noted by the supervision missions.
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168. Towards the end of year three, a Mid-term Review will be fielded with a broad mandate towards
refocussing the Programme. The CPO will prepare a status report ahead of the Mid-term Review,
suggesting and justifying proposed design changes. Moreover, surveys to gauge effects and impacts
will be completed before the fielding of the Mid-term Review.
F. Risk identification and mitigation
169. As shown in the Logical Framework, included at the end of the executive summary, the design
of PRIDE is based on assumptions. These assumptions implicitly signal the programme’s main risks.
If an assumption would not hold, this would negatively affect the integrity of the programme design
and would undermine the degree of success of the intervention. This section describes the magnitude
of the risks and discusses mitigation measures included in the Programme design. The risks are
explicitly recognised, as risk monitoring forms a part of the Programme’s overall monitoring and
evaluation approach. By monitoring risks, the Programme can intensify its mitigation measures, or
review its approaches for better success.
170. Implementation readiness. New programmes in Malawi have historically encountered very
slow start-ups and slow disbursements during the early years of implementation. Substantial delays at
start up postpone programme benefits and generally result in a higher overall cost (as salaries
continue to be paid, even if work does not progress); thereby undermining the investment’s economic
return.
171. The Programme design aims for a swift start: (i) use is made of studies undertaken for IMPIF, to
allow for an early start of construction works; (ii) use will be made of existing capacities in and
experiences of SAPP and RLEEP to initiate good agricultural practices and market linkages; and
(iii) GOM has indicated that it would like to obtain start-up in order to prepare a PIM, AWPB,
procurement documents and set up the accounts; and to start preparatory activities for a first batch of
schemes. The IFAD start-up financing facility supports specific expenditures after entry into force of
the financing agreement (signing of the financing agreement), but before all conditions for first
withdrawal are met.
172. GOM capacities. GOM is hard-pressed to make means meet ends. The weak national
economy combined with the vulnerability to global markets, results in national budgets that are
modest in their lay-out. For years, GOM has not been able to fulfil all vacancies in its government,
including the extension services. Even where staff is present, the level of services is affected by
limited availability of budgets for communication, transport and activities. If PRIDE would rely on the
present capacity in the GOM, implementation would be seriously delayed.
173. The programme includes a dual policy for the mobilisation of services for smallholder
agriculture. Where available, PRIDE enables the performance of GOM staff in critical areas as
irrigation engineering, land consolidation and agricultural extension. Where such services are
unavailable, PRIDE uses its resources to outsource services to the private sector. A dedicated PCO
with designated authority is charged with establishing the terms for supporting government agencies
near the scheme cluster areas; and with defining the terms for outsourcing services. The mix between
mobilisation of government and private sector services will differ per area, and will be carefully
designed and reviewed.
174. Inclusiveness. Women provide 70% of the labour in agriculture and produce 80% of the food
for home consumption. Twenty-five per cent of the households are female-headed, and most of those
live below the poverty line. Like elsewhere in Africa, the youth withdraws from agriculture for lack of
perspective in agricultural growth. If PRIDE does not succeed addressing these two categories, the
effect (enhanced production for nutrition and markets) and impact (resilience of rural communities) of
the Programme will be limited.
175. In recognition of the risk of not adequately addressing important segments of the target
population, the Programme design includes a targeting strategy which aims for inclusive development.
During the preparation phase, targeting will be discussed with the community representatives, and
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their active support is sought. For all major activities, data on participation are disaggregated into
target group segment, and underachievement will prompt remedial measures. Specific attention is
given to female extension workers, with investments being made to ensure especially their mobility.
The introduction of ICT technology and the use of mechanisation is expected to attract especially
attention of young farmers.
176. Availability of rural financial services. PRIDE pursues a gradual intensification of
smallholder agriculture, whereby financial surplus in one season, fuels the introduction and/or
expansion of good agricultural practices in the next. However, especially at the onset of this process,
farmers need to avail external finance to enter into the process. Smallholder farmers are strapped for
cash, and the need to invest in agriculture competes with financial needs for nutrition, medical care,
schooling, household utensils, etc. Informal Rotating Savings and Credit Associations ROSCAs
(known as Chilemba and Chiperegani in Malawi) exist, in which the members pool savings for the
benefit (by rotation) of a single members. Micro-credit is also extended by formal banks. Mix Market
(http://www.mixmarket.org – co-funded by IFAD) lists ten Micro Finance Institutions serving over
375,000 borrowers with a total loan volume of nearly USD 140 million. Interest rates are steep at
about 40% per annum, but loans generally are taken for a single season.
177. Given the availability of rural finance options, the risk of smallholder farmers not being able to
take part in the opportunities offered by PRIDE is modest. The risk is further mitigated by decisions in
the design: (i) irrigation investment is highly subsidised, with farmer not contributing any cash but
unskilled labour - maximised at 20% of the investment cost – only; (ii) farmers’ risk-taking is minimised
by the availability of demonstration packages. Farmers will either experiment with a new technology
using a starter package or will have seen how the new technology works, before investing their own
resources.
178. Catchment management. PRIDE invests in combating land degradation in the communities
immediately around the irrigation systems. Thus, PRIDE addresses community natural resource
management, and this enables PRIDE to build not only the physical interventions, but to also set-up a
model for community natural resource management. The downside is, however, that degradation
concerns in the wider catchment are not addressed and that upstream processes may affect the long-
term sustainability of the investments under PRIDE, especially in the irrigation schemes.
179. The risk of infrastructure failure due to upstream land degradation processes is modest. Direct
threats to the structural integrity of the irrigation schemes can be addressed using the funds reserved
under component 1. Moreover, the Government of Malawi is in the process of setting up the
knowledge base, the policies and the structures for catchment management. A Water Resources
Assessment Study has identified current and future habitat integrity pressures for 69 sub-catchments
in Malawi’s 17 catchment basins; as well as the currently and future fitness-for-use of the related
water bodies. In addition, GOM is in the process of establishing 17 catchment management bodies.
For the moment, the critical issue of wise use of the available water resources is already addressed
by the registration of water withdrawal rights by MOAIWD. While additional external support, such as
under programmes of the Global Environment Fund or the Green Climate Fund would help increase
the pace, it is assumed that current and future efforts of the GOM to protect the natural resource
integrity of the country will safeguard the scheme cluster areas.
180. Unit costs for irrigation development. The estimates for civil works on irrigation schemes
included in the PRIDE budget are based on a variety of sources, ranging from pre-feasibility studies to
detailed design. The final estimate (defined after completion of detailed designs and consultation of
the scheme cluster areas) may deviate, as may the final cost upon completion. A tendency for high
per unit investment costs (over USD 10,000/ha) has been observed in a number of completed
schemes, and modest risk for cost overrun is signalled. Should this risk materialise, PRIDE cannot
achieve its targeted benefited area within the resources available and the EIRR of the Programme will
drop.
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181. The present unit costs are based on considerable field work in pre-feasibility and feasibility
studies. Allocation of adequate resources for supervision will help control the use of cost variation
orders. In addition, the Programme design includes a pilot for an integrated Build – Design – Transfer
(BDT) contract, which would provide better incentives for a prudent per hectare cost for irrigation
development.
182. Delayed registration of farmer organisations. Within IRLADP and RLEEP substantial delays
are reported in the registration of Water Users’ Associations and Agricultural Cooperatives,
respectively. Organisations that are established as legal entities, may find it difficult to represent the
interests of their members, or to comply with formal administrative procedures. Failure of farmer
organisations implies a lack of socio-organisational sustainability of the programme intervention.
183. Whereas delays in registration are likely to occur, the effects of this are contained. PRIDE is
built on the premise that producer groups do not need formal registration for their members to
conclude business transactions with traders and wholesalers. Whereas the group offers them the
benefits of collective action (storage, grading, transport, negotiation), the individual member (i.e.
smallholder farmers) continues to act as a business entities on her/his own accord. For the Water
Users’ Association the need for registration is, however, compelling: It needs to be registered to be
able to enter into land and water agreements. The PRIDE design has brought this step to the initial
stages of the programme; thereby ensuring adequate time for the registration to take place, and
substantial opportunity for the lead Ministry to pursue the same. The experience of IRLADP, which
could eventually speed-up WUA registration, will provide a good reference.
184. Extreme events. As experienced earlier in 2015, extreme (climatic) events may seriously
undermine the sustainability of land and water management infrastructure. The January 2015 floods
have damaged a number of existing irrigation schemes, thereby rendering the investments either
useless or less effective. Climate change will result in a further intensification of weather extremes.
The long-term viability of irrigation systems is at stake.
185. PRIDE sets up WUAs, which will shoulder regular maintenance and small repairs, including the
built-up of funds for this. While regular maintenance does not preclude damage due to extremes, it is
well-known that regular maintenance reduces the vulnerability of the irrigation systems. Moreover,
designs under PRIDE will be made climate change compliant, amongst others by liaison with the EU-
funded Irrigation and Climate Change Project. Thirdly, it is assumed that GOM – with help from its
development partners – is able to finance future major rehabilitations of irrigation infrastructure
damaged by extreme events.
186. Long-term land access. The establishment of an irrigated command area requires a re-
distribution of land. The larger parcels used for rain-fed agriculture can be split-up in small irrigated
parcels, which can be distributed to several smallholder households. Land access on customary land
is, however, intrinsically insecure and subject to dynamic change. At scheme development, use is
made of tested procedures for providing smallholder farmers equitable access to land. Such land
agreements are subject to free, prior and informed consent by affected parties; and include proper
compensation for any loss of land use, shelter or livelihoods resulting from irrigation development. A
grievance mechanism ensure that all concerned have recourse to a review of decisions of on land and
compensation. It remains to be seen whether the land distribution during scheme construction
remains largely unchanged over a series of years. Differences in social position may translate into a
skewed access to land resources, or a re-emergence of the practice of sub-leasing. Should land
access be increasingly controlled by a few, then the Programme impact on its target group is at stake.
187. The risk of concentrated control over land is limited as PRIDE uses arrangements for access to
land that have proven successful in IRLADP. The programme furthermore includes tracer studies on
land access, which will be undertaken with support from the Global Land Tools Network. These
studies keep tabs on land access, and on farmers´ response to a more secure land access. The
tracer studies also provide an early warning system for land concentration, and allow the Programme
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to take remedial measures. In addition, GOM is processing a new Land Bill which provides conditions
for enhanced security of land access on lands that presently have a customary title.
188. Local livelihood improvements. Indicators for poverty, such as asset ownership and
incidence of wasting, will improve unless the improved productivity of agriculture is used to invest
outside the Programme area. This could be the case when household members migrate out of the
area for attending higher education or in search of gainful employment, while they continue to be
dependent on the household income. Rather than improving their development status directly
following improvement of the farm productivity; households may forego the immediate livelihood
improvement and opt to invest in long-term opportunities towards improvement. The risk is that the
achievement of the Programme goal would be both delayed and more uncertain (due to the risks
associated with the long-term opportunities).
189. The risk of Programme benefits being invested in long-term development opportunities rather
than being used for improved child nutrition and purchase of household assets is only partially
contained through the Programme’s investments in nutrition education and promotion of enhanced
nutritional intake of household members.
IV. Programme costs, financing, benefits and sustainability
A. Programme costs
190. Total Programme Costs. Total Programme costs including price and physical contingencies,
duties and taxes are estimated at USD 84 million over the seven-year Programme implementation. Of
this amount about USD 23 million (27% of total project costs) represents the foreign exchange
component, USD 13 million (15.9%) are duties and taxes. Total base costs amount to USD 77.1
million, while physical and price contingencies are estimated to add another USD 6.8 million (8.8% of
the base costs) to this amount. Investment costs account for 86% of the base costs (and recurrent
costs for remaining 14%).
191. Programme investments are organized into three cost components: (i) Irrigation development
and catchment management; (ii) Agriculture and market linkages; and (iii) Programme management.
The first component consists of three sub-components, being: (i) land and water governance;
(ii) irrigation system development; and (iii) soil and water conservation. The second component also
comprises three sub-components, being (i) improved agricultural practices; (ii) market linkages; and
(iii) mainstreaming nutrition. The third cost component is made of two sub-components, being:
(i) programme coordination; and (ii) knowledge management, planning and monitoring & evaluation.
Funds allocated to Programme management and coordination amount to about USD 6.3 million or 9%
of the total Programme costs. A summary breakdown of the Programme costs by component and sub-
component is shown in table 10. Detailed cost tables are provided in appendix 9.
Table 10: Programme costs summary by year and by component (thousand US$)
Totals Including Contingencies
2016 2017 2018 2019 2020 2021 2022 Total
A. Irrigation development and catchment management
1. Land and w ater governance 767 316 778 317 689 339 105 3.311
2. Irrigation system development 2.241 9.929 12.463 10.766 6.268 5.471 1.021 48.159
3. Soil and w ater conservation 184 395 345 411 359 427 128 2.248
Subtotal 3.192 10.639 13.586 11.493 7.316 6.237 1.254 53.718
B. Agriculture for irrigation and rain-fed systems
1. Improved agricultural practices 927 1.327 1.292 1.242 1.179 1.089 341 7.397
2. Market linkages 1.931 4.380 4.510 1.083 534 451 268 13.159
3. Mainstreaming nutrition 14 120 112 113 1 1 - 362
Subtotal 2.872 5.827 5.914 2.438 1.715 1.541 609 20.918
C. Programme management and coordination
1. Know ledge Management, Planning and M&E 193 120 120 223 125 129 278 1.187
2. Programme coordination 1.464 1.087 1.109 1.122 1.551 1.132 663 8.127
Subtotal 1.657 1.206 1.228 1.345 1.676 1.261 941 9.314
Total PROJECT COSTS 7.721 17.673 20.729 15.277 10.706 9.040 2.805 83.950
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B. Programme financing
192. Financing Plan. PRIDE is to be financed by the GOM, IFAD (loan and grant), ASAP grant
through IFAD, DFID, private sector and beneficiaries. IFAD will finance 31.5% (USD 26.5 million) of
the programme costs of USD 84 million as a loan to the GOM; and 31.6% (USD 26.5 million) will be
an IFAD grant. ASAP will finance 8.4% (USD 7 million). The loan is on highly concessionary terms
including a 40-years maturity period, a 10-years grace period; and a 0.75% annual service charge.
The other 50% of the IFAD funds form a grant under the Debt Sustainability Framework (DSF). The
ASAP grant is provided by IFAD outside the usual funding framework. The government will finance the
taxes and duties (USD 13.2 million, representing 15.7% of total costs). The estimate of taxes and
duties was based on the rates in effect prevailing at the time of the design. In conformity with the
principle that no taxes or duties would be financed out of the proceeds of an IFAD Loan or Grant, any
future changes in the rates and/or structures of taxes and duties would have to be met by GOM.
Beneficiaries will contribute USD 7.2 million (mainly in kind) representing about 8.7% of Programme
costs. The proposed financing plan is summarised in table 11.
Table 11: Programme financing plan (000 USD)
GoM IFAD LOAN IFAD GRANT ASAP DFID Private sector Beneficiaries Total
Amount % Amount % Amount % Amount % Amount % Amount % Amount % Amount %
A. Irrigation development and catchment management
1. Land and w ater governance 504 15,2 1.035 31,3 1.368 41,3 232 7,0 - - - - 172 5,2 3.311 3,9
2. Irrigation system development 9.597 19,9 15.241 31,6 16.368 34,0 - - - - - - 6.953 14,4 48.159 57,4
3. Soil and w ater conservation 426 18,9 19 0,8 - - 1.646 73,2 - - - - 157 7,0 2.248 2,7
Subtotal 10.527 19,6 16.294 30,3 17.736 33,0 1.878 3,5 - - - - 7.283 13,6 53.718 64,0
B. Agriculture for irrigation and rain-fed systems
1. Improved agricultural practices 806 10,9 1.280 17,3 600 8,1 4.711 63,7 - - - - - - 7.397 8,8
2. Market linkages 1.081 8,2 1.699 12,9 6.881 52,3 - - 498 3,8 3.000 22,8 - - 13.159 15,7
3. Mainstreaming nutrition 53 14,8 - - 35 9,7 273 75,5 - - - - - - 362 0,4
Subtotal 1.940 9,3 2.979 14,2 7.516 35,9 4.984 23,8 498 2,4 3.000 14,3 - - 20.918 24,9
C. Programme management and coordination
1. Know ledge Management, Planning and M&E 152 12,8 - - 1.036 87,2 - - - - - - - - 1.187 1,4
2. Programme coordination 464 5,7 7.210 88,7 252 3,1 201 2,5 - - - - - - 8.127 9,7
Subtotal 616 6,6 7.210 77,4 1.288 13,8 201 2,2 - - - - - - 9.314 11,1
Total PROJECT COSTS 13.083 15,6 26.483 31,5 26.540 31,6 7.063 8,4 498 0,6 3.000 3,6 7.283 8,7 83.950 100,0
193. Start-up funds. To support a swift start of programme a start-up financing facility is foreseen to
a total of USD 560,000, to cover specified expenditures during the period between entry into force of
the Project Agreement and the moment conditions for first withdrawal are satisfied. In Table 12table
12, the eligible expenditure items and advance estimates are detailed.
Table 12: Start-up financing facility
Item USD
Office set-up 167,000
Salaries professional team 211,000
support team 81,700
Preparation
WUA training 14,800
Scheme appraisal 18,500
Land & water consultations 27,000 Purchase and installation of accounting software 20,000
Setting up M&E 20,000
Total 560,000
C. Summary benefits and economic analysis
194. PRIDE will generate financial and social benefits by promoting investments and activities aimed
at introducing good agricultural practices including post-harvest management in rain-fed and irrigated
crop production. Financial benefits will be in the form of increased financial returns (net incomes) to
about 17,500 smallholder households as direct beneficiaries of the Programme (see table 13).
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Table 13: Direct Programme Beneficiaries
195. Social benefits will include a reduction in poverty rates in the areas targeted by the Programme.
This will be the effect of the increased financial returns for smallholder households consequent to
Programme intervention and of improved employment opportunities in the agriculture sector. Other
social benefits include improved nutrition and increased food security through diversification of crop
production or increased incomes which could be used to improve diets. Irrigation brings the possibility
for farmers to diversify in vegetable crops, having a positive effect on the diet composition. A
household is expected to expand its cultivated products with at least 4 new crops, resulting in a 20%
increase in diet diversification.
196. With regard to the climate change adaptation the expected benefits are as follows:
Improved water security in the irrigation schemes as well as protection of the investments in the
infrastructure in regions where risk of flooding exists;
Improved agricultural productivity in the rain-fed areas with potential of yields increasing by 50 –
100% when using climate-smart good agricultural practices, such as conservation agriculture
and the soil fertility measures integrated therein; which can translate into improved household
incomes and food security;
Strengthened community-based natural resources management to enable informed decision-
making, which also enhances community relationships and cohesiveness;
Enhanced resilience to climate risks such as droughts, dry spells and floods through measures
adopted and improved climate and weather information.
197. The economic rationale for PRIDE is based on: (i) improved agricultural productivity and
reduction of post-harvest losses in both the rain-fed only and the combined rain-fed & irrigated
farming systems as a result of the application of Good Agricultural Practices; and (ii) increased
cropping intensities and high value crop cultivation on irrigated lands.
198. The economic analysis of the Programme indicates that PRIDE is robust in economic terms.
The overall Economic Internal Rate of Return (EIRR) of the Programme is estimated at 20% (base
case) which is above the opportunity cost of capital in Malawi, which is estimated at 12%7. The EIRR
is estimated based on the assumption that 80% of target farmers will adopt the GAP technology
packages promoted by the Programme and 90% would be engaged in farming of irrigated land.
199. The Net Present Value (NPV) is USD 29 million over the 20-year period of analysis, with the
benefit stream based on the quantifiable benefits that relate directly to the activities undertaken
following implementation of the components. These figures are considered reasonable given that
benefits of the Irrigation window in the Malawi Innovation Challenge Fund and the introduction of
7 World Bank: Average deposit interest rate paid by commercial or similar banks in Malawi.
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improved cooking stoves) have not been quantified, nor considered in the analyses, while their costs
are. More detail of the Programme economic and financial analysis is included in appendix 10.
200. Sensitivity Analysis. The EIRR has been subjected to sensitivity analysis in order to measure
variations due to unforeseen factors and account for risks. Criteria adopted in the sensitivity analysis
are: 10, 20 and 50% cost over-run, 10 and 20% increase in benefits, 10 to 50% benefits decrease and
1 to 2 year implementation delay. The Programme appears robust as the EIRR remains on or above
the opportunity cost of capital, when faced with variations in costs and benefits of 20%.
Table 14: Sensitivity analysis
Year ERR NPV /a
base scenario 20.0% 29,755
Costs+10% 18.4% 25,460
Costs+20% 17.1% 21,165
Costs+50% 13.7% 8,279
Benefits +10% 21.5% 37,026
Benefits +20% 23.0% 44,297
Benefits -10% 18.3% 22,484
Benefits -20% 16.4% 15,214
Benefits -50% 9.7% -6,599
I year lag in benefit 17.1% 19,965
2 years lag in benefit 14.8% 11,224
a/ Net Present Value (NPV), @12%.
D. Sustainability
201. This section examines the sustainability of the outcomes, benefits and impacts of the
Programme, beyond the Programme implementation period. It will identify key assumptions
underpinning the long-term benefits and highlight measures built-in into programme design that
contribute to a long-term benefit stream.
202. The section on strategic context and rational (Section I) explained that smallholder farming is
stuck at a level of (near-) subsistence, rendering it very vulnerable to climate and economic shocks.
This situation is caused by uncertain land access, low land productivity and weak market linkages.
PRIDE is set-up to break through this deadlock and to establish alternative mechanisms that enable
smallholders to carry-over a surplus from one season to invest in another, while meeting the
household’s nutritional requirements.
203. The programme design assumes that its target group of smallholder farmer households, with
special considerations for the position of women and youth, will continue to benefit from the
Programme intervention beyond the programme period, and beyond the economic lifetime of the
infrastructure introduced by the Programme. The mechanisms built into the project design that
promote this long-term sustainability are:
Scaling Up – PRIDE is scaling up previous experiences in smallholder irrigation, such as
IRLADP, and moreover, it aims to serve as a model to be scaled up in Malawi and elsewhere.
The potential for scaling-up seems good, as the pathways are in place such as the policy
engagement , e.g. an integrated natural resources management policy framework is in place
NAPA and NCCIP, the government policy on Water User Group is conducive for participatory
planning, implementation and O&M of irrigation infrastructure.
Key drivers for scaling – up include the financial and fiscal space. Poor O&M is mitigated by the
funding commitment of the Government of Malawi for larger rehabilitation works, and the
responsibility of the WUA to carry out regular maintenance.
Institutional space is ensured by effective WUA and other grassroots organisations, an
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approach that has been successful in IRALDP and other previous projects. Irrigation will only
succeed if farmers can tap into remunerative markets with new and better quality products.
PRIDE is linked to RLEEP and private sector such as through the MICF to make that critical
step. M&E is critical not only to monitor implementation, but to capture results and lessons
learnt. PRIDE will be equipped with a strong M&E and KM system to deliver information needed
for successful scaling-up of its approach and rendering it to a sustainable investment.
Knowledge management – a key function of the programme management is to draw and
share with key stakeholders in the smallholder agriculture sector lessons from programme
implementation. While the Programme does not assume responsibility for development of
legislation and policies, it is set to optimally inform the smallholder agriculture sector and to
thereby inspire the development of an enabling framework for smallholder agriculture. Much
depends however on the commitment of GOM to continue to pursue growth through more
effective smallholder agriculture.
Market linkages – The Programme fosters a culture of entrepreneurship among smallholder
farmers on the one hand, and commodity-wise cooperation along the value chain on the other.
This mechanism should result in a continuing orientation of smallholder producer groups and
individual producers on market opportunities, and a lasting commitment among the value chain
partners to enhance the value creation for key commodities produced by smallholder farmers.
Continuity may however be affected by major shifts in global land national markets.
Innovative capacity – PRIDE encourages farmers to jointly review and replicate the Good
Agricultural Practices shared with them by the national extension services, and by private
sector agencies involved in agricultural extension. PRIDE enable the government extension
services to offer, with the help of private partners, up-to-date knowledge on climate-smart
agricultural practices. The sustainability of this innovative capacity depends on continuity in
inventory and adaption of good agricultural practices.
Community natural resource management – PRIDE invests in prevention and remediation of
land degradation in the areas immediately surrounding the irrigation schemes. It involves the
concerned communities in prioritisation of such investments and develops a management
system in which local conservation groups can benefit from wood, fruit and fodder production
on the restored lands, in return for the upkeep of the land degradation measure. This would
constitute an innovation in natural resource management in Malawi. This will sustain if
incorporated in Malawi’s emerging policies and approaches for natural resource and catchment
management. Additional donor funding may enhance the pace with which these approaches
are established.
Farmer-managed irrigation systems – PRIDE invests in irrigation development. Malawi’s
irrigation policy pursues the capture and storage of water resources for irrigated crop
production. PRIDE builds on existing experiences in irrigation scheme development, whereby
responsibilities for the management of land and water are vested with Water Users’
Associations. These associations will recover costs for operation and maintenance; and may
pursue business cases for irrigated crop production. Malawi has identified a portfolio of
irrigation investment options for which it actively searches external funding. Given this context,
farmer-managed irrigation is set to be a sustainable addition to the smallholder agricultural
sector. PRIDE will contribute lessons learned to the actors involved in further development of
farmer-managed irrigation.
Land consolidation – PRIDE builds on existing procedures for the consolidation of land under
customary title in irrigation systems. The approach parcels out irrigated land to smallholders;
compensates affected smallholders through land access; and vests overall management of the
land resources in a WUA. The aim is to ensure equitable access to irrigated land throughout the
seasons and without the practice of sub-letting. The dynamics of this system will be closely
followed through annual tracer studies, allowing PRIDE to pursue adjustments, if required. The
sustainability of WUA-managed land access depends on the GOM’s capacity to register,
regulate and review the performance of the WUAs.
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Consultative planning – PRIDE will involve traditional leadership and village development
committees closely in overseeing the community activities induced by the programme. Doing so
provides a governance context at local level. PRIDE relies on this level to target its
interventions to poor households and to ensure the involvement of women and youth in the
activities. Sustaining the commitment of local leadership to the transformation of smallholder
agriculture depends on their continued involvement in planning and targeting of activities
undertaken by MOAIWD and other agricultural sector players.
204. Systemic change. PRIDE aims to transform smallholder farming within an intervention area
limited to about 15 medium-sized irrigation schemes, including surrounding rain-fed lands. Irrigation
infrastructure, climate-smart agricultural practices and market linkages are the ‘game-changers’ that
help institute this transformation. Sharing of experiences within the smallholder agriculture sector will
contribute to scaling-up the approach to other areas with irrigation potential. To pursue enhanced
resilience of rural communities to economic shock and climate change effects in areas without
irrigation potential as well, requires the identification and promotion of other game-changing
approaches as well.
205. PRIDE focusses on mobilising services that help reset smallholder agriculture from subsistence
to commercial farming; be it by enabling the existing government services or by commissioning
service providers. By addressing the line agencies and the private services as integral parts of the
smallholder sector, PRIDE intends to contribute to a growing synergy between the parties that can
help smallholders reinvent their farm enterprises.
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Appendix 1: Country and rural context background
Country and economic background
1. Malawi is a densely populated landlocked country of about 15 million people in an area of
118,484 km2, of which 24,000 km
2 is fresh water. Population growth is 3% per annum and the country
has one of the lowest levels per capita GDPs in the world. With a human development index of 0.418
Malawi is ranked 170th out of 187 countries, while its gender development index is 0.544, giving it a
ranking of 116th out of 186 countries
8. The Integrated Household Survey (2011) estimates that 50.7%
of the population lives below poverty line, with 25% being ultra-poor.
2. The socio-economic challenges remain formidable and the ability to maintain a level of
economic growth to ensure poverty reduction remains limited by: (i) the narrow economic base; (ii) the
small and low-value domestic market; (iii) poor infrastructure/high transport costs; (iv) erratic power
supply and heavy reliance on energy imports; (v) Government intervention in key market sectors; and
(vi) weak institutional management capacity in the public and private sectors. Education levels and
productivity are low. Malawi is extremely vulnerable to shocks, particularly drought, as a result of its
heavy dependence on rain-fed agriculture. Inflation and high interest rates remain a disincentive to
investors. Chronic food insecurity and malnutrition, combined with HIV/AIDS prevalence of 11.9%,
adds to the challenges.
3. Malawi has a predominantly agricultural economy, with most of the population depending on
subsistence farming and exports heavily reliant on the key cash crops, tobacco, tea, sugar and cotton.
Real GDP growth rates averaged less than 4% during the 1990s, but have ranged from 2% to nearly
7% since 2002. The current account deficit of nearly 13% of GDP is financed by donor grants and
development credits. The country has limited access to alternative modes of external financing and
has attracted little foreign direct investment.
4. The agricultural sector is important to economic growth in Malawi because it employs about
80% of the total workforce (NSO, 20129) and accounts for 29% of gross domestic product (GDP)
(GOM, 201310
). The sector contributes significantly to national and household food security (GOM,
2011). However, the sector faces a number of challenges including over-dependence on rain-fed
farming, low adoption of improved technologies, poor support infrastructure, inadequate input and
output markets, weak private sector participation, low level of irrigation development, and inadequate
levels of investment in mechanisation.
5. Therefore to address these challenges the MGDS II (2012-2017) identified agriculture and food
security as one of the nine key priority areas. Under agriculture and food security priority area there
are two sub-priority areas, agriculture productivity and diversification, and food security. The
agricultural development strategies contained in the MGDS II are implemented through the ASWAp
(2011-2015). ASWAp is also consistent with the Comprehensive African Agricultural Development
Program (CAADP) and Development Assistance Strategy. A multi-donor Trust Fund (MDTF),
managed by the World Bank, has been instituted to strengthen the capacity for implementing ASWAp.
6. PRIDE is aligned with the ASWAp, which has pillars on sustainable land and water
management and food security. PRIDE will contribute to the achievement of the objectives of two
programmes in the Adaptation window of the National Climate Change Investment Plan (NCCIP):
strengthening catchment area and soil and water conservation management; and improving
community resilience through agriculture production. Contribution to the NCCIP will be through the
water and catchment management activities and improved agricultural practices. PRIDE also aligns
with the National Adaptation Programme of Action (NAPA), which includes i) sustaining livelihoods;
8 United Nations Development Programme (UNDP) Human Development Report 2013
9 NSO (2012) National Welfare Monitoring Survey 2011
10 GOM (2013) Economic Report 2013
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ii) enhancing food security and the fourth priority focusing on increasing resilience of food production
systems under conditions of erratic rains.
7. In order to address economic challenges that Malawi faced in 2012 the GOM developed the
Economic Recovery Plan (ERP) with the objective to ensure rapid economic growth for poverty
reduction. The ERP includes interventions to protect the most vulnerable communities in rural areas,
such as the scaling up of the Farm Input Subsidy Programme (FISP) and medium-term policy reforms
to restore external and internal economic stability. The ERP has prioritised five sectors including
Agriculture. Within Agriculture the following actions of relevance to PRIDE are planned to be
undertaken: (i) Diversify and upscale production of key crops that have potential for export market;
(ii) Continue the GBI with focus on irrigation farming of high value crops, aquaculture and animal
farming; (iii) Enact and implement amendments to land legislation, including the enactment of the
Land Bill; (iv) Review the Special Crops Act as it disadvantages some crops and brings distortions in
the industry; and (v) Increase and improve agricultural extension services.
8. GOM, private sector, development partners and civil society are committed to work together to
generate greater private sector investment in agricultural development; to scale innovation; to achieve
sustainable food security and to reduce poverty and hunger. This provides GOM commitment to
develop regulatory frameworks and mechanisms to enable the private sector to invest in agriculture,
food security and nutrition. The country, led by the Ministry of Industry and Trade, has developed the
National Export Strategy (NES) through consultative processes involving the private sector, academic
institutions, representatives of smallholder farmers and a cross-section of relevant government
organisations. Through NES, GOM has committed to work with the private sector in areas of
developing the oilseed industry, sugar industry, the energy sector and enhance support to agricultural
commercialisation.
Governance Framework
9. Malawi has been a multiparty democracy since 1994. Economic policy is driven by the MDPC
and the MOFEPD. Malawi’s 1998 Decentralisation Policy provided for the devolution of certain central
government functions to 28 elected District Councils (DCs). Below the district level there is a dualistic
system of governance incorporating traditional authorities and elected village councils, which are
members of VDCs and Area Development Committees. IFAD programmes are implemented at the DC
level and below, and have consistently encountered capacity limitations owing to the demands on the
decentralised staff of sectorial ministries and the low technical and financial management capacity.
10. Government policies favour mainstreaming donor-supported programmes within Government
systems, phasing out parallel project implementation structures and adopting sector-wide approaches.
GOM has abolished project implementation units in 2012, and attempted mainstreaming their
functions in the respective ministries. However, the human resource capacity constraints in the civil
service remain a challenge with many programmes which did not have dedicated staff in PIUs stalling.
Notably, most DCs lack fiduciary and technical management capacity and there is often a need for
project appointed staff to undertake grass-roots activities at the district level and below.
Land, water and climate change policies
11. Malawi currently faces a number of land governance challenges. In general, dysfunctional land
policies and institutions have been an obstacle to proper land use, investment in agriculture, private
sector development, gender equality, and good governance. A lack of collaboration between
institutions and the presence of vested political interests have long prevented progress. Insecurity
over rights, absence of low-cost mechanisms for registration, and a non-functioning land
administration system block private sector development and the development of financial services.
Although 25% of households are female headed, less than 15% of land is registered in the name of
women, either individually or jointly. Land use planning is mostly absent. Many land tenure issues
related to irrigation schemes require further attention. A Land Bill has been prepared to address these
issues but has not yet been legislated. However, the current legal framework does provide for the
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granting of legal land rights to WUAs, and through them to their members, although regulations,
procedures and District and local capacities need to be strengthened.
12. Irrigation development has been guided by the 2001 National Irrigation Policy and Development
Strategy (NIPDS). The NIPDS was revised in 2014 and is based on the irrigation sector overall goal of
contributing to sustainable economic growth and development by enhancing irrigated agricultural
production. Specifically, the NIP emphasises increasing the area under sustainable irrigation,
extending cropping opportunities, facilitating crop diversification, creating an enabling environment for
irrigated agriculture, enhancing capacity for irrigated agriculture and promoting a business culture in
the small scale irrigated sub-sector. Institutions for water planning and conflict resolution at a scale
and a cost realistic in the Malawian context have yet to be established. No sustainable funding
mechanisms have been identified for the proposed seventeen large-scale River Basin Authorities.
Other smaller-scale structures and processes should be considered to resolve disputes among
different water users in areas where water competition is intense. The MOAIWD completed an
investment framework and Master Plan for the Irrigation sub-sector by March 2015, which forms the
basis for scheme selection by PRIDE, as well as by other donor-funded programmes.
13. During 50 years of independence Malawi has maintained a duality of smallholder and estate
farming in the agricultural sector. In 2012/13 output from the agricultural sector measured by the real
agricultural gross domestic product (GDP) grew by 5.7% from its 2011/12 value. The smallholder sub-
sector contributes over 70% of the agricultural GDP (GOM). Smallholder farmers mainly cultivate food
crops and raise livestock on fragmented landholdings under customary land tenure. Overtime the
smallholder landholding sizes, which include the dwelling unit for households, have declined from
1.2ha in 1982 to 1ha in 2007 (NSO 2007, 1982) largely due to high population growth rate of 2.7%
(NSO, 200811
). 84% of smallholder farmers now cultivate on less than half a hectare (NSO, 200712
)
compared to only 50% that cultivate the same amount of land as in 2000 (GOM, 2000).
14. The irrigation potential of Malawi remains, largely, unexploited. Out of the potential of 297,000
hectares, only about 94,000 hectares have been developed for irrigation purposes. 44,180 hectares
(47%) are under smallholder farmers benefiting 396,283 people of which 44% are women. The other
53% are under estate management. Dependence on a single annual rainy season production has
resulted in perpetual annual food deficits. In addition, food demand in Malawi has been rising because
of the increase in population. The NSO projects that the population will rise from 15.4 to 19.1 million
people by 2020. Food production under irrigation is, therefore, seen as one way of improving
productivity thereby sustaining more households with increased food and cash crop levels.
15. To further increase area under irrigation a Presidential initiative was established known as the
Green Belt Initiative (GBI). The aim is to produce competitive products under irrigation for the
domestic, regional and international exports. GBI focus is along Lakes Chilwa, Malawi and Malombe;
Shire River and the perennial rivers from Chitipa to the Shire Valley. However there have been only
limited funds to support this and therefore little progress has been achieved.
16. PRIDE will contribute to the objectives of two programmes in the Adaptation window of the
National Climate Change Investment Plan (NCCIP): (i) strengthening catchment area and soil and
water conservation management; and (ii) improving community resilience through agricultural
production. Contribution to the NCCIP will be through water and catchment management activities
and improved agricultural practices. PRIDE also aligns with the National Adaptation Programme of
Action (NAPA), which includes as priorities: (i) sustaining livelihoods; (ii) enhancing food security; and
(iii) increasing the resilience of food production systems under conditions of erratic rains. The
activities financed by the ASAP within PRIDE will support improved climate-resilience of both rain-fed
and irrigated farming systems. The climate change adaptation measures are in response to the main
climate risks of prolonged dry spells, droughts and floods and will include catchment level
management to ensure water security for agricultural production. Catchment management will be
11
NSO (2008) Population and Housing Census 12
NSO (2007) National Census of Agriculture and Livestock (NACAL)
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undertaken within a watershed planning framework, bringing together water users to enhance their
collaboration with emphasis on their interdependence and shared benefits.
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Appendix 2: Poverty, targeting and gender
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Appendix 2: Poverty, targeting and gender
Human development and poverty
1. The population of Malawi grew from 9,933,868 in 1998 to 13,066,320 in 200813
, representing an
increase of 32%. There are more females totalling 6,700,549 (51%) than males (49%). The Southern
Region has the highest population of 5,876,784 (45%), followed by Central Region, 5,491,034 (42%)
and Northern Region, 1,698,502 (13 percent). At District level, Lilongwe rural has the highest
population of 1,228,146, while Likoma district has the lowest population of only 10,445. The youth
profile in Malawi indicates that out of the total population more than 40% are aged 10 to 35 years14
.
Literacy rate within this age bracket is estimated at 81.8% with slightly more males (86.6%) than
females (77%) being literate. About 85% (11.1million) of people live in rural areas.
2. The 2013 UNDP Human Development Report ranked Malawi 170 out of 187 countries
surveyed making the country one of the poorest in the world. The third Integrated Household Survey
of 2011 (IHS3) estimates that 50.7% of the population lives below poverty line, indicating that half the
population is poor, and 25% being ultra-poor. The IHS3 defines the poverty line according to the total
consumption of food and non-food items. The population that has total consumption below MK 37,002
is regarded as poor and the population with total consumption less than MK 22,956 is considered
ultra-poor. The Southern region has the largest poverty rate (63%) and the Northern region (60%).
According to the Malawi Welfare Monitoring Report 2011, lack of food and inadequate nutrition are
underlying causes of poverty. In Malawi the incidence of poverty and ultra-poverty is higher in female-
headed households. The proportion of poor and ultra-poor is 58% and 27%, respectively, in female-
headed households. On average, female-headed households earned only 60% of the annual income
of male-headed households.
3. The GOM has over the years pursued various strategies to reduce poverty including: the
Poverty Alleviation Programme (1994); the Malawi Poverty Reduction Strategy (2002–2005); the
MGDS I and the current MGDSII 2011–2016). Although emphasis has been on economic growth,
infrastructural development, and the provision of basic social services poverty remains widespread in
Malawi. One of the more successful but costly strategies was from 2005 implementing FISP in
response to low input use and severe food supply shortages. FISP aimed to provide low-cost maize
and tobacco fertiliser and improved maize seeds to poor smallholders (a legume seed component
was later added). Maize yields increased from 0.8 to 2.0 metric tons per hectare between 2004/05
and 2009/10 and tobacco expanded production at an average annual rate of 13%.
Gender and youth
4. The IHS3 notes that 72.7% (2,087,181) of Malawi households (HH) are headed by males and
27.3% (782,752) by females. Disaggregation by location shows that males headed 82% of the urban
households and 71.1% of the rural households, while females headed only 18% of the urban
households and 28.9% of the rural ones. In terms of rural areas, southern rural (29%) has the highest
proportion of female headed households and the northern region has least (21%). The proportion of
female headed households increases with increase in age. Malawi has a Gender Inequality Index
(GII) value of 0.573, ranking it 124 out of 148 countries in the 2012 index. The GII reflects gender-
based inequalities in three dimensions: reproductive health; empowerment; and economic activity.
The GII shows the loss in human development due to inequality between female and male
achievements in the three GII dimensions.
5. In the agriculture sector, studies show that about 70% of full time farmers are women. However,
most women do not take full control over the use and ownership of agricultural land, access to credit
is low, between 10% and 15% and the control over the use of the credit rests with the men within the
13The 2008 population and housing census. 14
According to the National Youth Policy (2013), youth in Malawi constitute all persons from age 10 to 35 years regardless of their sex, race, education, culture, religion, economic, marital and physical status.
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households. Similarly, extension and training services favour men. Women in Malawi are more
vulnerable to climate change than men, mainly because they are poorer than men; they bear the
primary responsibility for growing of food crops and collecting resources like water and firewood,
which are becoming increasingly scarce. Frequent drought and erratic rainfall force women to work
relatively long hours to secure food, water and energy for their homes.
6. An analysis by the Vulnerability Assessment report 2007 found that on average, a Malawian
household spends the equivalent of MK 2,558 per capita, per year on fuel wood, or about 12% of total
annual consumption expenditure. 84% of all individuals who collected fuel wood were women. On
average, active women spent 1 ½ hours on firewood collection. Adult men spend more time on the
labour market than adult women including salaried, casual, part-time, ganyu and non-agricultural
business-related work. The national gender policy summarises the gender inequalities within the
socio-cultural, political, legal, and economic contexts. Major poverty indicators disfavour women in
Malawi and these aggravate the disadvantaged position of women see Box 1.
Box 1: Gender Gaps at a Glance15
Gender Gaps at a Glance
GII – 0.573 (ranking 124 out of 148 countries)
Literacy levels. Females 59%; Males 69%
Population. Women 51%; Men 49%
Access to extension services. Women 14%; Men 18%
Average landholding size. Women 0.803 ha; Men 0.964 ha
Participation in HH decision making in male HH. Women 36%
Composition of agricultural labour force. Women 70%
Poverty prevalence. Female HH 59%; male HH 51%
Care-giving for the sick. Women: 80%
PLHIV. Women: 56-58%
Gender-based Violence victims. 90% are women
Domestic tasks: Women (82%); men (18%).
7. The analysis of the status of women and the gender gaps shows that PRIDE (and other
development initiatives in Malawi) has to address gender issues in order to achieve its objectives.
Experience from IRLADP showed that female headed households responded better to project
initiatives than male-headed among poor beneficiaries. IRLADP further noted that operating under
similar circumstances, female farmers can respond better to development initiatives than male
farmers, and hence their participation in the development can accelerate poverty reduction16
.It was
established that women earn nearly 50% of what their male counterparts involved in similar ventures
in informal enterprise earn. The NASFAM is the largest independent, smallholder-owned membership
organisation in Malawi with over 100,000 members. NASFAM conducts bi-annual gender audits which
indicate the trend on women and youth representation. The 2010/11 gender audit showed that
seasonal average of women membership to NASFAM Associations was 34.4%.
8. In Malawi there are both matrilineal and patrilineal systems. There are four main tribes, two of
which, the Chewa and Lomwe tribes, are matrilineal. Under the matrilineal system, land is handed
down through the female line. Women are considered to be pillars of society, but are nonetheless
restricted to the home and performing family care responsibilities. Paradoxically, such female-
dominated societies prevent women from attending school and from having an economically active
life. Women's role is to stay at home. Northern tribes, which are male-based, do allow women to go to
school and do not marginalise them by forcing them to take care of the family. In many contexts, men
are expected to dominate and women to be passive in taking decisions about sexual relationships.
The ‘subordinate’ position in which Malawian culture places women and girls denies them the power
equal to men and boys, to among other things inherit property or acquire through purchase.
15
Source: The Agriculture Sector Gender, HIV/AIDS Strategy (2012-2017); UNDP, 2013 16
IRLADP Independent Impact Study; 2013
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9. The cultural norms in Malawi exacerbate the gender gap. For example, traditional Malawian
culture, regards, wife battering as normal. Domestic violence occurs across all socio-economic and
cultural backgrounds. Women are the major victims of culturally and socially acceptable gender-based
violence in the rural areas which has been treated as a private issue until recently. GOM in response
to the international and regional instruments on women’s rights, started to implement initiatives aimed
at creating awareness of gender-based violence and changing the social order in which a woman is
assumed to be of lesser status and her husband leads in all family aspects. PRIDE will therefore
undertake to provide sensitisation on gender issues through various ways, such as the Gender Action
Learning System (GALS).
10. The National Gender Policy of Malawi was launched in March 2000 and evaluated after five
years. The evaluation highlighted challenges and issues which included HIV and AIDS, gender-based
violence (GBV), human trafficking, increased environmental degradation and high levels of poverty
with gender dimensions. The policy was revised in 2008 to address these issues. The Gender
Equality Bill, 2012 further provides legal response to the gender inequalities. MGDS II includes gender
as a cross-cutting issue. The MOAIWD gender and HIV/AIDS strategy (2012-2017) recognises that
women and the youth are responsible for a significant proportion of work in the rural sector. In
promoting gender equality and women’s empowerment, PRIDE will therefore be acting in accordance
with and supporting the various policies and legal responses highlighted above.
11. With regard to agriculture, the National Youth Policy seeks to ensure that: (i) modernisation of
agriculture through the incorporation of ICT and other modern technologies and tools to make
agriculture attractive to the youth is encouraged; (ii) access to productive agricultural land in adequate
proportion and other factors of production for the youth who fail to access these resources due to
culture, gender and/or other socio-economic factors is facilitated; (iii) the promotion, provision and
dissemination of youth tailored information and provision of support for advanced training targeting out
of school youth for increased agricultural production, agro-processing and marketing is facilitated;
(iv) an enabling environment for Public Private Partnership for youth development including the
provision of technical training to youth is created; and (v) support for the scale up of the national
internship and mentorship programmes to facilitate youth to enter the labour market in rural and urban
areas is promoted.
12. While the National Youth Policy (2013) defines youth as all persons from age 10 to 35 years,
PRIDE will work young women and men of 20 to 35 years. This is the group that has potential to
participate in the agricultural opportunities sited in the Youth Policy (para 11.) Furthermore, PRIDE is
not implementing a school-based activity, and will therefore not have an opportunity to work with
school going young people.
Rural livelihoods
13. About 85% of households in Malawi are engaged in agricultural activities. Of these households,
about 84% of households are engaged in crop production whilst 44% rear livestock. 43% of
households engaged in agricultural activities are engaged in both livestock rearing and crop
cultivation. In terms of labour the IHS3 found that 94% of the cultivated plots used women and 82%
used men as labour input. Regardless of the sex of the children, 25% of the cultivated plots used
children and 23% reported to have hired child labour input. In terms of cropping pattern, about 31% of
plots are intercropped. More female managed plots are intercropped (39%) compared to male
managed plots (28%). The data from IHS3 further shows that richer households are less likely to
intercrop compared to the poorer households. Across regions, the southern has registered the highest
proportion of plots that are intercropped (50%) compared to the north (20%) and the centre (10%).
14. Some 77% of households reported being affected by substantial price shocks during 2002 to
200717
. 65% of all households reported being affected by a collapse in agricultural crop yields as a
result of erratic weather. This reflects the dependence of smallholders on rain-fed agriculture.
Droughts, erratic rains, floods and water logging affected about 26% of the vulnerable population’s
17
The Vulnerability Survey 2007
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food production, while land shortage (small landholding size) affected 11%. 41% of the population
reported that the underlying cause was lack of farm inputs. Illness or injury to a household member is
reported by almost 50% of all households, consistent with the high prevalence of shocks associated
with death of family members reflecting in part, the HIV/AIDS epidemic.
15. Malawi’s agricultural sector is characterised by a dual structure consisting of smallholder farms
and estates. Although smallholder agriculture is still mainly subsistence oriented, dominated by maize
and other food crops, smallholders are now also contributing significantly to cash crop and export
production in burley tobacco, cotton, tea, bell pepper (paprika), groundnuts and chillies. On average
households in Malawi have about 1.2 ha of land, about 1 ha of which is cultivated. Cultivated land is
mostly low-input rain-fed land (0.95 ha) and the balance is dimba (0.08 ha). The smallholder sub-
sector contributes more than 70% to agricultural GDP and the estate sub-sector contributes less than
30%. Malawi’s economic performance is therefore dependant on how the smallholder farmers
perform. Small-scale farmers’ yields are typically less than the national average, and these
households tend to have lower per capita expenditure and a higher incidence of poverty. 33% of the
population had very low food security. Households vulnerable to food insecurity employ a variety of
coping and adaptive mechanisms intended to mitigate or scale down food hardships. Such coping
strategies include; relying on less expensive or less preferred food, limiting portion size at meal times,
reducing number of meals, restricting consumption by adults, borrowing food or relying on help from
others.
16. SHFs cultivate mainly food crops such as maize; the main staple grain, cassava and sweet
potatoes to meet subsistence requirements, on small fragmented landholdings under customary land
tenure. In terms of gender, the husband decides what to produce, at least when money is involved.
Women mainly grow crops for the family's own consumption, while men grow cash crops. Women
seem to have limited access to, and control over, production factors such as land, agricultural inputs,
and technology. Women provide most of the labour in the smallholder subsector, while men dominate
labour in the commercial subsector, creating imbalances in terms of access to agricultural income.
17. About 95% of the population uses firewood or charcoal for cooking. Gathering firewood takes
as much as three hours in a day and it is mainly the duties for women and children in rural Sub-
Saharan Africa. This limits time that could be spent more productively—tending gardens, raising cash
crops, in family care and sending girls to school. The 2012 Global Burden of Disease assessment
revealed that exposure to fine particulate matter (P.M. 2.5) and carbon monoxide in smoke from
cooking over an open fire causes four million premature deaths per year–exceeding deaths
attributable to malaria or tuberculosis and likely to exceed deaths from HIV AIDs by 2030 [1]. Typical
smoke exposure levels for women cooking over open fires are equivalent to smoking two packs of
cigarettes per day. According to reports, the use of improved cook stoves reduces exposure of women
and small children to fine particulate matter (PM 2.5) and carbon monoxide resulting from partial
combustion of wood and woody biomass from cooking over open fires whether indoors or outside.
Targeting and gender mainstreaming
18. PRIDE’s priority is to develop approximately 15 irrigation schemes, resulting in some 5,100
hectares newly under irrigation. Given an average irrigation scheme size of approximately 350 ha;
each irrigation scheme will be associated with one or more villages, whose inhabitants cultivate the
land to be brought under the scheme. An estimated 90% of the smallholder households in these
villages will take part in the irrigated agriculture, while retaining lands for rain-fed farming, whereas the
remainder 10% will continue to work only on their rain-fed land outside the irrigated area. Farmers in
the latter category are not willing to make the transition into irrigated agriculture but will benefit from
PRIDE support to good agricultural practices and market linkages for rain-fed crops. PRIDE supports
both types of smallholder farms. The figures in the table are estimates only and will be further
specified by the Programme’s baseline survey.
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Appendix 2: Poverty, targeting and gender
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19. The target group is defined as smallholder farmers in the selected scheme cluster areas. Within
this group, a primary target group comprises households that are currently food insecure and produce
mainly for subsistence. The target group can be further analysed in terms of poverty and a typology
can be applied as follows:
Ninety per cent of rural dwellers are reportedly engaged in farming. In the 15 scheme cluster
areas selected for the Programme this percentage can be assumed to be virtually hundred as
the small commercial centres – where shops, services and schools are located – are generally
located on the roadside rather than in the scheme cluster areas. This would especially hold
true, if we consider the household: while some individuals may be engaged outside agriculture,
the household living in the area still would be engaged in agriculture;
Rural poverty in the northern and southern regions is 60 and 63% respectively. Assuming that
non-farming households are generally better-off; and that these households are generally
absent in the scheme cluster areas; it seems reasonable to estimate prevalence of poverty in
the scheme cluster areas at 70%. Households that are poor, but not ultra-poor (see next) are
food insecure in at least some years, while non-poor smallholder households are food secure in
all years, and are able bounce back after extreme events;
Extreme poverty, coinciding with food deficiency, is reported at 29-33% for the rural north and
south respectively. Here it is estimated at 35%, reflecting the absence of well-off non-farming
households in the total sample. This category includes landless and near landless households,
who largely depend on agricultural labour.
Categories Households (#) Households (%)
Total 19,500 100
Non-farming households negligible 0
Food secure smallholders 5,850 30
Food insecure smallholders 6,825 35
Food deficit smallholders 6,825 35
20. The priority target group is defined as smallholder farmers who are currently food insecure and
produce one crop annually mainly for subsistence. The focus is to support the SHF target group to:
(i) be allocated secure land in PRIDE irrigation schemes; (ii) become members of their respective
Water User Association (WUA); and (iii) become business entities (individual and as groups) to
respond to market opportunities which will enable them to graduate from subsistence to food secure
semi-commercial farming status.
21. Targeting mechanisms. PRIDE’s targeting mechanism will draw on IRLADP lessons and
ensure equitable participation at all levels including in allocation of irrigated land as well the provision
of other services such as training. The household mentoring approach used by IRLADP for enhanced
gender equality and women’s empowerment will be used. The main measures and activities are
summarised in the Targeting Strategy Matrix.
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Targeting strategy matrix
Measures Activities
Geographical targeting PRIDE deploys a method for scheme selection combining the GOM – IMPIF prioritisation framework with PRIDE-specific indicators;
One large scheme for potential co-investment in the Northern Region has been pre—identified.
Enabling measures – to
create and sustain a policy and
institutional environment
favourable to gender equality
and women’s empowerment
Gender awareness creation for Traditional Authority / Chiefs to enable gender sensitivity in their work with communities;
Sensitisation of programme implementers (including the engineers);
Sensitisation of local leaders in charge of land issues in target areas;
Gender Audit of three WUAs supported to become centres of excellence;
Communication, extension and knowledge packages used in PRIDE will be gender sensitive in terms of language, topics and literacy;
Facilitate women and youth participation in WUA trainings and study tours by addressing barriers to their participation.
Empowering measures – to
give target groups equal
chances to access activities
Set quotas for leadership positions for women in WUAs;
Leadership training, particularly for men from poorer households, women and youth;
Promote equitable distribution of irrigated land.
Direct targeting – when
services or resources are to be
channelled to specific
individuals or households
Identify households to participate in the household mentoring approach;
Selected young women and men to be trained as household mentors.
Self-targeting measures – to
ensure that goods and services
respond to priority needs,
resource endowments and
livelihood strategies of target
groups
Strengthening of women and youth groups in various fronts including entrepreneurship;
Ensure that PRIDE’s interventions respond to the priorities, labour capacity and livelihood strategies of the smallholder farmers including land allocation within the scheme.
Operational measures – to
ensure gender-equitable
participation in, and benefit
from, planned activities
Ensure TORs for PRIDE staff reflect contribution to gender equality and community empowerment including the Programme Coordinator;
Discussions in start-up workshop and other mobilisation activities to include discussions on gender and youth issues.
Monitoring targeting
performance – to monitor
outputs, outcomes and impacts
as they relate to target group
The WEAI to form main part of gender analysis in the baseline survey and RIMS data collection and reporting;
All data to be disaggregated by sex and age with due qualitative analysis.
22. Gender mainstreaming: PRIDE will Train Trainers to use the household mentoring approach
and the Gender Action Learning System (GALS) tools to roll-out the out the methodologies to the
communities. Young women and men in the communities will be selected (through a defined criterion)
and trained to become household mentors. Under IRLADP, a manual and implementation guidelines
for the mentoring approach had been developed through the MOAIWD. These guidelines will be
updated to fit the PRIDE context as well as incorporate the wider GALS methodology. GALS has been
implemented in the context of both IFAD-funded interventions and NGO-supported projects. It helps to
address and overcome unequal gender and social relations. It is a versatile methodology that can be
integrated with a variety of interventions (such as rural finance, natural resource management, value
chain development). It can be used for households and groups. GALS will be incorporated in the
household mentoring and in training and capacity building of WUAs. GALS uses a set of pictorial tools
that can reach both literate and illiterate people.
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Appendix 3: Country performance and lessons learned
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Appendix 3: Country performance and lessons learned
1. Overall, the performance of the country programme has only been moderately satisfactory,
plagued by slow implementation related to capacity shortfalls in Government institutions. As the size
of the IFAD programme grows, these limitations will become increasingly important and necessitate a
high level of implementation support. The multitude of programmes and projects supported by other
donors adds to the pressure on capacity, especially within MOAIWD. The Government’s policy to
discontinue the use of Programme implementation units (PIUs) and contracted project staff seriously
delayed implementation and disbursement. SAPP had only disbursed 3% of total funds in two and a
half years. GOM with IFAD is implementing a Fast track Action Plan to get SAPP back on schedule
including a full time dedicated transitional programme coordination team. A number of lessons have
been learned from experience of IRLADP, IFAD and other partners in Malawi and their respective
design implications are summarised below.
Lesson Learnt Design Implications
A wide geographical spread of programme sites makes
implementation costly and adversely affects quality and
timeliness.
Restrict PRIDE to a few larger schemes and provide
adequate support to district agencies.
A dedicated full-time coordination team is required
immediately on start up for efficient and timely
implementation of activities.
DOI have agreed to recruit a full time dedicated team
for coordination of PRIDE contracted on a
performance basis.
Programmes should not be designed too rigidly and have
the flexibility to respond to new opportunities during
implementation.
PRIDE designed as a framework to attract private and
public investors to support new opportunities.
Essential to have secure formal land tenure for all
smallholder members of an irrigation scheme prior to
implementing the works.
Support relevant agencies to pass and enforce the
land bill and related legislation. Hold early
consultation with stakeholders to address land tenure
security issues in a participatory and gender-sensitive
manner. Prior to investment, stocktaking to capture
the current land tenure situation in the potential
irrigation command area and allocation of plots.
Land should be secured equitably throughout the seasons
for all members (male, women and youth) in a scheme to
enable up to three crops per year.
Establish the WUA and ensure that it has legal land
leases or customary land rights assigned
transparently and equitably to its members.
Water rights need to be allocated to each WUA and
enforced up and downstream.
Support WUA to obtain legal water rights from
regulatory authority prior to implementation of the
scheme.
Stakeholders must be involved with the conceptualisation,
design and implementation of a scheme and catchment.
Use IRLADP approach to facilitate full participation of
stakeholders at all stages of the scheme cycle
through establishment of a WUA.
Bylaws and constitution needs to be developed and
accepted by all members of each WUA in a scheme.
Establish WUAs with a strong constitution prior to
construction. During construction, train in modules
used by IRLADP and register them.
Water available at the end of the dry season is below
demand and reducing the area to be irrigated as well as
limiting selection of crops.
Obtain data on dry season river flows and match the
development of irrigated land to available water
resources.
Reliance on pumping has led to irrigation schemes for
smallholder farmers not being operated and maintained
and abandoned.
Give priority to gravity fed schemes. Introduce
advanced and water-efficient technologies where
technically feasible with capacity building.
The irrigation scheme needs to be economically and
environmentally sustainable and operated and maintained
by the WUA with minimal GOM support.
Support commercial farming. Develop business plan
for the WUA to collect fees for effective operation and
maintenance.
Generally female farmers respond better to initiatives than
males. Greater female participation in development can
accelerate poverty reduction.
PRIDE will use strategies such as quotas and the
household methodologies to ensure women and
youth participation to enhance gender equality.
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Appendix 3: Country performance and lessons learned
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Lesson Learnt Design Implications
Development of irrigation farming moves households out of
poverty achieved by adoption of improved technologies
giving increased crop productivity and food security.
Irrigation development must be accompanied by improved
access to farmer services to support farmers to transition to
commercial units.
Component 2 builds capacity of the farmers and
service providers working with SAPP to deliver
climate-resilient GAP and RLEEP to promote value
chain linkages to the market. This will help
smallholder farmers to shift from subsistence farming
to small-scale commercial agriculture.
SHFs need to be sensitised to respond to market demands
for high value crops and to select crops to give optimum
returns.
Facilitate RLEEP to sensitise SHFs on value chain
and the markets and in selection of commodities.
Effective cooperation among delivery agencies is essential
to balance the investment in irrigation development with
soft inputs, such as improved access to services. Capacity
building in marketing skills for the increased yields is
needed.
RLEEP will sensitise farmers to form groups, give
commercial and business planning training so they
can select the crops they will grow and be linked to
the relevant value chain.
Adequate consultations between engineers and
communities during design and implementation, with
relevant government agencies closely scrutinizing such
designs to ensure that they are consistent with the specific
environment and are feasible.
Build on the processes and procedures successfully
developed by IRLADP, including social and
environmental impact assessments. Catchment
protection within the scheme area will be prioritised.
Unit costs to develop and construct irrigation schemes are
medium in the range of USD 9-13,000/ha.
PRIDE will focus on high value crops and facilitate
value chain linkages in order to generate an
acceptable return on investment.
Many examples of contracts being delayed due to
contractors either/and deliberately underbidding, or having
inadequate resources or due to inflation of construction
material prices.
Allocate resources to support local contractors to be
organised and trained on irrigation and drainage
design and construction. In an unstable economic
environment, consider fixing contract sums in a more
stable currency.
Design an appropriate quality scheme in line with the
demands of the beneficiaries and the fees they can afford
to pay for O&M.
Involve WUAs with planning and design of schemes
and educate them in the options and costs as part of
developing their business plan.
Environmental and conservation measures in the
catchment areas (upstream) are the key to sustained use
of the irrigation infrastructures.
Support communities to rehabilitate degraded
hotspots, catchment planning and. produce ESMPs
and safeguards with budgets for implementation.
Catchment management needs to be participatory with
hotspots identified where prioritised interventions can be
initiated to ensure water security in the irrigation scheme.
Build on the IRLADP participatory processes in
developing the catchment management plan and
implementing the prioritised interventions.
Conduct pre-feasibility and feasibility studies for each
scheme. Procurement through NCB which takes time in
Malawi (6-12 months).
Where practical, target schemes that already have
feasibility studies done. Procurement to be
undertaken in the rainy season.
Construction contracts spanned more than a dry season for
the rehabilitation schemes. Farmers could not utilise the
dry season to grow any crops in their gardens when water
could not be run in the existing canals with loss of
livelihood.
Farmers will be sensitised early to find alternative
livelihoods. Where contractors are used, the works a)
will be scheduled that parts of the scheme can still be
used for irrigation during construction; b) in order to
work around damage caused by farmers in finished
structures, the contracts should allow for a phased
handover.
Many programmes do not devote adequate resources to
M&E and/or design systems that are too complex and
contain too many performance indicators.
PRIDE will adopt a streamlined M&E approach that
includes a large measure of self-monitoring by
participants and partners. This will be facilitated by a
dedicated PCO M&E Officer.
Alternatives considered and rejected
2. Various schemes in the Shire Valley were considered but they were rejected for a combination
of environmental issues and that they are dependent on other donor partners having the funds
available at the same time for these schemes in excess of 10,000 ha.
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Appendix 4: Detailed programme description
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Appendix 4: Detailed programme description
1. This appendix describes PRIDE’s two components in some detail. It identifies the main work
processes that will need to be detailed in the Programme Implementation Manual (PIM, draft table of
contents included in appendix 11).
Component 1: Irrigation Development and Catchment Management
2. This component aims to develop climate-resilient land and water management systems for
smallholder households on both rain-fed and irrigated lands. Sub-component 1.1, Land and Water
Governance, comprises preparation activities for all other investments as well as the establishment of
WUAs. Sub-component 1.2 targets investments in irrigation infrastructure, which will enable increased
agricultural productivity and will open up opportunities for cash crop production. Sub-component 1.3
targets soil and water conservation investments in erosion affected or vulnerable rain-fed lands in the
scheme cluster areas, as an important pillar of PRIDE’s sustainable land management strategy.
Outcome Outputs
c) Climate-resilient land and water management systems for
smallholder households on both rain-fed and irrigated
lands
1.1 Communities effectively manage their
medium-sized irrigation systems
1.2 Medium-sized irrigation systems (50 – 1,000
ha) established
1.3 Erosion-affected and vulnerable land rain-fed
land recovered
Sub-component 1.1: Land and Water Governance
3. This sub-component targets the preparation stage for all investments (including component 2)
in the scheme cluster areas. This includes the formation of WUAs to manage, operate and maintain
irrigation schemes, building on the approach used by IRLADP.
4. Preparation activities and investment agreements. A Community Planning and Investment
Agreement (CPIA) process will be initiated in scheme cluster areas, which will guide government and
beneficiaries through the preparation phase. The CPIA process includes free prior and informed
consent (FPIC) procedures and ultimately leads to the signing of a number of Investment Agreements,
detailed below. PRIDE will set up a multi-disciplinary CPIA team in each district to guide the
preparation activities, comprising of concerned government agencies at District level and specialised
service providers where required. The communities will during initial consultations be represented by
their leadership and village development committees, who will be asked to convene a Combined
village committee for the scheme cluster area. The CPIA process is based on the approach used by
IRLADP, and will be further elaborated with concerned parties during programme start-up, using
experiences from IRLADP implementing partners. All plans developed in the CPIA process will be
submitted through the Area Development Committee (ADC) to the District Executive Committee for
approval and will provide the basis for preparing the annual work plan and budget.
5. The CPIA process starts with a Participatory Rural Appraisal (PRA) of the scheme area,
which will allow the farmers to get a thorough understanding of the impact of the proposed
investments. The PRA will be conducted by the CPIA team together with the combined village
committee and includes an appraisal of areas to be protected, consultations on irrigation scheme
planning, and identification of crops and markets to work on. The appraisal of irrigation scheme areas
will capture the current land tenure situation in terms of land use and land ownership. This will
subsequently enable the combined village committee to assign an interim formation committee for the
WUA, charged with representing farmer interests throughout the remainder of the process, until the
WUA executive committee is elected by the scheme beneficiaries. The WUA formation committee will
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Appendix 4: Detailed programme description
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be taking a lead role in the establishment of Land and Water Agreements, overseen by the Combined
village committee.
Figure 1: The ‘community planning and investment agreements’ process
6. Land and Water Agreements. Consultations will be held to establish Land and Water
Agreements between the WUA, landowners and, where applicable, Traditional Authorities. At this
stage, the WUA formation committee acts on behalf of the interests of the to-be-formed WUA; but the
agreement itself can only be concluded once the WUA is formally established. The consultations will
address (i) access to land for farmers with less access at present; (ii) compensation for those affected
by scheme construction activities; (iii) grievance mechanisms; and (iv) confirmation of free, prior and
informed consent. For schemes established on customary land, compensation options could include
landowners being: (a) allocated (or retaining) larger land parcels in the irrigation scheme; (b) provided
alternative land; (c) provided cash compensation; and/or (d) another option agreed to by the intended
beneficiaries. In cases where unallocated customary land is used, the Combined village committee
will approve land sharing agreements and compensation arrangements that may be required for the
wider community that may have been using the land.
7. The Land and Water Agreements will include (i) the amount of land each WUA member will
have access to, including procedures on land and water allocation in times of limited water availability;
(ii) rules for changes in access to land in case of non-payment, non-performance or death;
(iii) stipulations on sub-leasing; and (iv) procedures for conflict resolution. Land parcels will be
surveyed and demarcated and WUA plot allocation registers will be maintained.
8. Scheme Implementation Agreements. In parallel to the Land and Water Agreement and WUA
establishment, the WUA formation committee will – in preparation to a WUA decision – negotiate the
irrigation scheme lay-out and the beneficiary contribution to scheme development with the design
consultant mobilised by PRIDE. In general, the WUA takes responsibility for land levelling,
construction of tertiary and field canals, and for collection of local construction material. PRIDE aims
to keep the beneficiary contribution within 20% of the total scheme value. The beneficiary contribution
will be carefully monitored, during planning, design and implementation. The WUA will form a
construction supervision committee of which the responsibilities need to be discussed; and which’ role
needs to be reflected in the construction contract. The conclusions of these negotiations will be
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documented in a Scheme Implementation Agreement, to which the WUA and the services mobilised
by PRIDE will be held accountable.
9. WUA establishment and strengthening. As part of the action plan, a WUA will be formed for
each scheme as the legal entity holding lease of the irrigation command area and responsible for land
and water management in this area. WUAs are private, non-profit, self-supporting, independent
entities with four main functions: (i) management of WUA members’ access to irrigated lands;
(ii) operation and maintenance of the irrigation and drainage systems; (iii) collection of water charges
and membership fees; and (iv) provision of law and order among the irrigators (including resolution of
irrigation water related conflicts).
10. Depending on the size of irrigation command area, the WUAs will have up to a three-tier
organizational structure; one for each level of tertiary, secondary and main canal. Membership of
WUAs will be automatic for all water users owning or possessing land located in the irrigation scheme.
Each member will have equal voting rights in elections and decision-makings to democratically elect
their leaders and achieve equity and transparency in land and water allocation. The WUA will have
(i) a General Assembly composed of all members; (ii) an Executive Committee for day-to-day
operation and management; (iii) a Water Jury for resolution of disputes arising among members; and
(iv) various subcommittees fulfilling technical functions such as financial management, construction
supervision and operation and maintenance. The WUA will be overseen by the Combined village
committee.
11. Before the establishment of WUA management structures, future WUA members will visit
nearby functioning WUAs. This will enable the farmers to get acquainted with irrigation farming and
scheme management, and to learn from their peers’ successes and failures, which will allow them to
get a better understanding of the different roles and responsibilities in scheme management. PRIDE
will subsequently, through its service providers, assist the WUA in electing its Executive Committee,
developing by-laws and obtaining registration as a legal entity. PRIDE will also assist in the formation
of subcommittees through the facilitation of meetings and by providing training.
12. Members of the executive committee and subcommittees will receive training on their
respective duties, such as financial management, construction monitoring and scheme operation and
maintenance. Executive Committee members and subcommittee leaders will participate in leadership
training every two years to strengthen their managerial skills. Follow-up training on technical subjects
will be provided when a need is identified during annual joint review meetings. Building on IRLADP’s
experience, scheme operation and maintenance training will be more structured and intensive, with
hands-on training provided every 6 months during the first three years of operation.
13. PRIDE will enable the WUA to obtain formal water use rights to ensure availability and
equitable access to water from the source and optimum utilisation of the capital investments. The
water requirements and abstraction rates will be prepared by the scheme design consultants to be
submitted as a part of their report. The consultant will also draw up and discuss a proposal for water
distribution and for rotation of irrigation turns.
14. PRIDE will establish a WUA start-up facility. Using the experience from cross-learning visits and
initial training, the WUAs will prepare investment proposals against a predefined maximum budget.
Such proposals can include any investment that will improve the WUA’s and scheme’s functioning.
The proposals will be assessed on their merits by a committee formed by PRIDE.
15. Preparation of other activities. The other activities to be undertaken in the scheme cluster
areas, such as soil and water conservation, good agricultural practices and market linkages, will be
handed over to beneficiary groups and lead farmers who will liaise directly with agencies
implementing the PRIDE programme. Facilitators from within the community will be trained to
enhance participation of women and youth in the meetings, and as such improve equality in the
membership of committees.
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16. Soil & Water Conservation Planning – Concurrent with the planning of the irrigation scheme,
the communities will also plan investments in the wider scheme cluster area. This planning will be
done through conservation groups that are initiated by the combined village committee for each
prioritised eroded or erosion-prone area. Selection of sites for intervention will be done in a
participatory manner, informed by the ADC’s Environmental Action Plan and available land
degradation assessments. These activities will be carried out under sub-component 1.3.
17. Good Agricultural Practices and Market Linkages – Crucial to the success of PRIDE’s
investments, farmers will be assisted in their farming practices and value chain linkages. The
combined village committee will help enlist lead farmers for these activities, who will in turn form
groups to take part in the activities carried out under component 2.
18. Joint review, on-demand training and studies. PRIDE will monitor the implementation and
impacts of land and water agreements through regular joint reviews, the results of which will be
reported both to the WUA as well as community representatives. A specific tracer study will be
conduct over the full length of the programme on a limited number of schemes, to get an in-depth
understanding of the land access dynamics and how these affect agricultural practices, and to
propose improvements to the CPIA process. To do so, PRIDE will link up with the Global Land Tools
Network through their partnership with IFAD under the regional “Tenure security learning initiative”
grant programme.
19. Recurrent WUA inspection visits will serve to assess the state of the irrigation system, advice
the WUA on required O&M and to optimise the scheme’s functioning. The inspections will also identify
capacity building needs, which will be addressed through needs-based and on-demand training. This
inspection and needs-based training will be done during the first three years of WUA functioning. Both
the land and water agreements reviews as well as the WUA inspection visits will at programme start
include recently finished IRLADP schemes to guarantee their continuity.
20. To capitalise on the sizeable investments made under PRIDE, the programme will include
comparative studies on emerging irrigation practices. The topics for these studies will be defined as
practices emerge, and could range from O&M modalities, land and water distribution practices and
agricultural strategies to financial management and conflict resolution.
Sub-component 1.2: Irrigation System Development
21. The main focus of this sub-component is the development of 15 irrigation schemes, covering
about 5,100 ha. Investments in this sub-component are guided by the Irrigation Master Plan and
Investment Framework (IMPIF). One of the key strategies that emerged is to invest in water storage.
With increasingly erratic rainfall patterns as a result of climate change, and utilisation of dry season
river flows reaching its maximum, water storage has become a necessity for further agricultural
development in Malawi. Water storage will have a positive effect on the regulation of water flows and
as such, combined with improved catchment management, reduce the chance of river floods.
22. The shortlisted schemes (table 1) are located in seven districts, concentrated in four Irrigation
Service Divisions (ISDs). The ISDs are decentralized entities of the Department of Irrigation and will
be key in the implementation of PRIDE. With an average design-to-commissioning time of 3 years,
irrigation investments will be phased in three lots (see figure 2), with 1 or 2 schemes per ISD in each
lot. The ISD and district staff, as well as contractors can as such optimise their work on consecutive
schemes. The more complex schemes will be constructed first, to avoid late-programme delays.
Household land allotments, estimated at an average 0.3 ha per household, will vary from scheme to
scheme and will be determined in the Land and Water agreements (sub-component 1.1).
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Lot Scheme District Irrigation Service Department
Command Area (ha)
1
Marko Chitipa Karonga 727
Matoponi Zomba Machinga 73
Mlooka Zomba Machinga 138
Mpamba Nkhata bay Mzuzu 788
Nkhulambe / Wowo Phalombe Blantyre 310
Kasimba Karonga Karonga 162
2
Mwenilondo Karonga Karonga 524
Nazombe Chiradzulu Blantyre 470
Mafinga Hill Chitipa Karonga 43
Chanyungu Mposa Machinga Machinga 114
Msenga Nkhata bay Mzuzu 836
3
Chipofya Nkhata Bay Mzuzu 369
Lingoni Machinga Machinga 189
Kadewere Chiradzulu Blantyre 300
Kasano Karonga Karonga 95
Totals 7 districts 4 ISDs 5138 ha
Figure 2: Phasing of irrigation scheme development
23. Four of the schemes in the shortlist include water storage by medium-sized earthen dams,
between 8.5 and 18.5 meters in height and with storage capacities between 4.5 and 9 million m3. Two
schemes use pumps for water supply, others are gravity-fed.
24. Implementation readiness is a major focus for PRIDE, as irrigation projects are known to be
prone to start-up delays. To increase implementation readiness and as part of the IMPIF, GOM and
development partners have decided to maintain a pipeline of studies, which new investment projects
can use as long as they make new studies available for others through the IMPIF pipeline. From this
pipeline, PRIDE has selected 5 schemes with feasibility studies and 10 schemes with pre-feasibility
studies available. A start-up financing facility will be used to finance the early launch of further
consultancies for feasibility and detailed design studies.
25. While PRIDE has shortlisted 15 schemes, final investment decisions on individual schemes will
only be taken when the CPIA process has been successfully completed, an ESIA has been carried out
and when feasibility studies have proven the scheme’s financial and economic viability. To allow for
flexibility, PRIDE has selected another 9 schemes as a reserve, totalling about 3,800 ha. These
reserve schemes have been chosen based on their IMPIF score and their geographical match with
the shortlisted schemes.
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Scheme District Irrigation Service Department
Command Area (ha)
Dowa Dambo Dowa Kasungu 375
Nkawinda/Bakasala Blantyre Blantyre 121
Likabula/Kholiwe Mulanje Blantyre 629
Faiti Mwanza Blantyre 505
Mdenga Balaka Machinga 204
Lupenga Mzimba Mzuzu 313
Perete Phiri Mzimba Mzuzu 564
Bwanamudoko Mzimba Mzuzu 784
Msindwa Nkhotakota Salima 337
Totals 6 additional districts 1 additional ISD 3833
26. Water availability and climate change. PRIDE will engage with an EU-funded project which
seeks to mainstream climate change in the irrigation sector in Malawi. This project will amongst others
look at reviewing design codes to take into account predicted changes in water availability and
improved irrigation system efficiency. PRIDE will mainstream the revised design codes into its
irrigation system development activities.
27. Sustainability and unit costs. Sustainability, and in particular operation and maintenance
(O&M), remains a major concern. It is essential for PRIDE to break-out of the cycle of scheme
construction, degradation and rehabilitation. While PRIDE will include significant capacity building to
strengthen the farmers’ and district officers’ technical capacity to maintain the system, funding of O&M
is critical and will need to be borne by the revenues created through improved productivity and better
market linkages.
28. A study by the International Water Management Institute (IWMI) (Inocencio et al, 2007) found
that average unit hardware costs in Sub-Saharan Africa (SSA) for projects implemented between
1967 and 2003 were with USD 13,802 /ha (in 2014 USD values) much higher than the average USD
7,223 /ha for the rest of the world. However, when irrigation projects are categorized by EIRR,
“success projects” (EIRR>10%) in SSA were with USD 4,681/ha not inherently more costly than
success projects in the rest of the world. Average unit costs for SSA were higher because of the
higher percentage of “failure projects” (EIRR<10%).
Table 1: Unit costs of irrigation projects in Africa in 2014 USD values (Inocencio et al, 2007)
New Construction Rehabilitation
Unit Cost (USD/ha) a/ Total Cost Hardware Total Cost Hardware
Average SSA 19,050 13,802 10,850 6,667 Non-SSA 8,685 7,223 3,005 2,404
Success projects EIRR >10% SSA
7,546 4,681 4,597 3,035
Non-SSA 6,066 4,990 2,416 1,865
Failure projects EIRR <10% SSA 30,554 22,925 21,569 12,894 Non-SSA 14,001 11,761 5,260 4,465
/a In 2014 USD values using GDP deflator
29. Based on the available studies and IRLADP’s experience, PRIDE’s average unit (hardware)
costs are estimated at 7,862 USD/ha, including an estimated 20% farmer contribution. These unit
costs are significantly lower than the average unit costs in Sub-Saharan Africa, yet higher than the
average unit costs for projects having an EIRR larger than 10%. The high unit costs can partly be
explained by high costs of transport and imported materials, yet there is scope for PRIDE to push for
more cost-effective designs.
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30. Integrated Contract pilot. In an attempt to find new methods to contain the high unit cost for
irrigation development – and thereby to enhance the feasibility of investing in smallholder irrigation –
the Programme will pilot an innovative procurement arrangement, that has been successfully applied
by other sectors. In an effort to reduce unit costs, PRIDE will pilot the use of integrated contracts; one
combined contract for design, build and transfer (DBT) of schemes which will be tendered to consortia
of engineering firms, civil works contractors and organisational development specialists. The DBT
contract value will be based on a unit cost per hectare, instead of on a bill of quantities. This would
give the consortium the incentive to minimise costs and maximise land under irrigation through water
efficiency gains, and to achieve this by working more closely with the community. Payment of the
contractor would be based on actual area irrigated after an initial period of operation (say 3 years);
and on evidence of a successful transfer of scheme management. Such contracts will require higher
contract management capabilities on the side of PRIDE, and substantial working capital on the side of
the consortium, and would place new demands on quality control as a part of contract supervision.
PRIDE will carry out market consultations to address these issues and pilot a DBT contract for one
scheme.
Component 1.3: Soil and Water Conservation
31. This sub-component addresses urgent environmental degradation risks in scheme cluster
areas by funding soil and water conservation measures. This is part of PRIDE’s sustainable land
management strategy which also includes the promotion of good agricultural practices in sub-
component 2.1. All activities in this sub-component are financed through ASAP.
32. Soil loss in Malawi is estimated at 20 tons/ha/year and a recent study found this contributes to a
reduction in crop yields of more than four per cent per year. Not only does soil loss affect agricultural
production directly, it also creates problems for downstream water users through siltation and
reduction of water quality. Reversing land degradation is as such of primary importance for securing
the productivity of irrigation schemes.
33. Land degradation is tightly linked to socio-economic pressure on scarce natural resources.
Malawi’s high population growth causes increasing demand for new agricultural lands and fuelwood,
which in turns drives deforestation. Land degradation can thus not be addressed without addressing
its socio-economic drivers.
34. PRIDE’s overall approach for soil- and water conservation in the scheme cluster areas is to
invest in measures that address land degradation, on the proviso that management of the lands thus
protected or restored is placed with conservation groups. In return for ensuring the upkeep of the
infrastructure, these groups can reap benefits from the land. This will be achieved through for instance
the planting of dual-purpose trees or restoration of soil cover on degraded lands by grasses suitable
for cut-and-carry practice.
35. Participatory Planning. In the CPIA process (sub-component 1.1); priority areas for soil- and
water conservation measures will be identified in conjunction with the combined village committee.
For each prioritised area, the smallholders directly associated with the area will be promoted to form a
conservation group. Local knowledge on specific environmental degradation risks will be the primary
guide to the selection of interventions, supported by geographical information from the CPIA process.
36. From the participatory mapping exercise and in parallel to the investment agreements for the
irrigated area, a planning of soil and water conservation measures will be made. During
implementation, two yearly follow-up meetings will be held between agency staff and combined village
committee to review the management of the investments.
37. Investments in this sub-category specifically aim at:
Restoration of soil cover, targeting vulnerable grounds. A combination of erosion control
measures and good agricultural practices (sub-component 2.1) will be used to restore a
permanent and fertile soil cover.
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River bank management.
Introduction of river buffer zones
through demarcation and possible
fencing off provides protection against
erosion. People presently cultivating in
these buffer zones need to be
compensated by investing in
productive assets elsewhere.
Erosion control investments such as
vegetated contour bunds and gabions
for tackling rill erosion and plugging of
gullies, respectively. Erosion control
reduces siltation in downstream
irrigation canals, and conserves soil
moisture for crop production.
Reforestation of slopes through the
provision of seedlings. Especially
communities where improved cooking
stoves (sub-component 2.4) are
introduced will be supported in
community forestry and agro-forestry
using for instance fast-growing
nitrogen-fixing species like Tephrosia,
Senna, and Gliricidia; along with
species that can be used as fuelwood.
38. Implementation and joint reviews.
Implementation will be done through
conservation groups. Representatives of the
conservation groups will participate in the
planning meetings and will receive technical
assistance through extension services as
required. Annually, the status of the
protected and restored areas will be
assessed and protection groups will be
advised on the adequacy of the care and
maintenance that they have provided. The
review will be jointly carried out by
decentralised government departments and representatives from the combined village committee.
39. National catchment management guidelines for Malawi have recently been published, see:
http://www.catchmentguidelines.org.mw/). The guidelines aim at “village level” catchment
management (see figure below) which would more or less correspond to the scheme cluster areas
defined for PRIDE. The elaboration of the implementation guidelines for PRIDE, planned for late
2015, will refer to these new guidelines to fine-tune the approach proposed for PRIDE.
40. Scaling-up. The approach used in PRIDE follows a catchment management perspective, yet is
applied to a smaller area so that a notable local impact can be created within the available resources.
The investments in the scheme cluster areas will provide a model for comprehensive catchment
management, and could be scaled-up through mobilisation of additional resources.
Component 2: Agriculture and Market Linkages
41. The second project component focuses on the farm level and aims to establish climate-smart
good agricultural practices (sub-component 2.1); which take place in a context of improved market
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linkages (sub-component 1.2). In addition, funds are reserved to promote private sector investment in
irrigation modernisation, and especially the introduction of pressurised irrigation (sub-component 2.3).
Finally, the use of improved cooking stoves is promoted as a generic measure for climate change
readiness and reduction of land degradation; and as an entry point for promotion of improved
nutritional practices (sub-component 2.4). Objectives and outputs for component 2 are:
Objective Outputs
d) Environmentally and economically sustainable agricultural
production systems adopted by smallholder households
on both rain-fed and irrigated lands
2.1 Smallholder farmers trained in good
agricultural practices on rain-fed and
irrigated land
2.2 Smallholder farmers linked to markets
2.3 Mainstreaming nutrition
42. PRIDE supports transfer of knowledge on good agricultural practices (GAPs) and market
linkages to smallholder farmers through trials and demonstrations. Demonstration fields in the scheme
cluster areas show good agricultural practices and their potential benefits; while better information
from the private sector on market potential and opportunities should increasingly inform smallholders’
crop choices. During the preparation stage, PRIDE will define in consultation with the existing
organisational structures and existing markets which crops to disseminate good agricultural practices
for, and which potential cash crop value chains to pursue. During this stage, beneficiaries form farmer
field schools and farmer business schools.
Component 2.1: Good Agricultural Practices
43. The introduction of good agricultural practices by PRIDE builds on the experience gained in
SAPP. PRIDE will focus on adaptation and dissemination of existing climate-smart Good Agricultural
Practices. GAPs to promote include: utilisation of climate information services; conservation
agriculture (CA), irrigation optimisation, use of improved inputs, application of integrated pest
management and reduction of post-harvest losses.
44. The 15 scheme cluster areas are populated by an estimated 19,500 smallholder households. It
is assumed that 80% will engage with the Programme through 20-member Farmer Field Schools
(FFS). The Programme will train and support 780 Farmer Field Schools and the lead farmers selected
by the smallholder farmers in the Farmer Field Schools. In addition, each Farmer Field School
participates every two years in a farmer-to-farmer study tour.
45. FFSs are typically mixed groups and are established on an informal basis. Where available,
existing FFSs will be used. PRIDE ensures that youth and female smallholder farmers are
represented in the FFS. The lead farmer-role rotates among interested members and is explicitly open
to women and youth.
46. Climate-smart agriculture / good agricultural practices: The UN Food and Agriculture
Organisation describes climate-smart agriculture, forestry and fisheries (CSA), as a contribution to the
achievement of sustainable development goals. CSA integrates the three dimensions of sustainable
development (economic, social and environmental) by jointly addressing food security and climate
challenges. CSA is composed of three pillars: (i) sustainably increasing agricultural productivity and
incomes; (ii) adapting and building resilience to climate change; and (iii) reducing and/or removing
greenhouse gas emissions, where possible. PRIDE will focus its extension efforts on the
dissemination of good agricultural practices, which fall within the definition of climate-smart
agriculture. For the moment, the following categories of climate-smart good agricultural practices have
been identified:
Use of climate information services – Farm decision should increasingly be informed by
accurate and localised information on weather and weather patterns. PRIDE will invest in an
assessment of the existing agro-meteorological network and will help upgrade the same based
on the needs of smallholder farmers, and especially in reflection of the need to optimise
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irrigation releases. PRIDE will purchase 100 portable weather forecasters, which can be
distributed to well-performing WUAs, extension field offices, and young farmers that are eager
to play a role in further information dissemination. Training will be given in the interpretation and
the use of weather and climate information. Communication channels such as community radio
programmes, internet and mobile phones will be utilised to disseminate the information. In
addition, PRIDE will assess and upgrade the status of the existing agro-meteorological network
based on the needs of smallholder farmers.
Optimisation of irrigated agriculture – Precise and timely application of irrigation water can
produce crops in predictable quantity, quality and time. Good preparation of, and care for,
irrigated soils help maximise the storage and use of soil moisture. Optimisation of water
deliveries helps bring the maximum possible command area under irrigation. Irrigation is
relatively new to Malawi, and government extension services are mainly focussed on rain-fed
farming. PRIDE will invest in research trials, technical assistance and extension services to
provide guidance to smallholder farmers turning to irrigation.
Conservation agriculture – Conservation agriculture (CA), as defined by FAO, is a concept for
resource-saving agricultural crop production that strives to achieve acceptable profits together
with high and sustained production levels while conserving the environment. Conservation
agriculture has three principles: minimum mechanical soil disturbance; creation of a permanent
organic soil cover protecting the top soil; and crop rotation with more than two species. PRIDE
uses the experience of SAPP, which promoted demonstration sites to show the impact of CA,
including zero tillage, residue retention, basin planting, crop rotation, mulching, composting and
intercropping with leguminous species. CA in agricultural plots complements the soil- and water
conservation measures implemented in the scheme cluster areas under component 1.
Access to and use of improved inputs – This GAP aims to boost productivity through
introduction of high-yielding, short-maturing, drought-resistant varieties. In addition, availability
and correct use of inputs such as seeds (e.g. inoculated legumes), fertilisers, natural herbicides
/ pesticides and agro-chemicals will be promoted. PRIDE will help engage smallholder farmers
as contract farmers for seed multiplication, in cooperation with a qualified seed company.
PRIDE will train agro-dealers on the correct use (quantity, handling and timing) of inputs. Other
topics might be micro-packaging of inputs and timely procurement and delivery. Training of
agro-dealers would enable these to train smallholder farmers, as and when inputs are
purchased. The Programme aims to supply seeds of selected crop varieties to 24 farmers’ seed
multiplication groups, resulting in four multiplication fields in each of the six districts. MOAIWD
provides technical supervision and is responsible for seed certification.
Integrated pest management – is defined as ‘the careful consideration of all available pest
control techniques and subsequent integration of appropriate measures that discourage the
development of pest populations and keep pesticides and other interventions to levels that are
economically justified and reduce or minimise risks to human health and the environment’
(FAO). IPM emphasises the growth of a healthy crop with the least possible disruption to agro-
ecosystems and encourages natural pest control mechanisms. Attention to pest management is
needed, as irrigated agriculture enables larger tracts to be grown in a single crop. PRIDE
provides funds for an inventory of existing IPM practices relevant to the crops grown in the
Programme area; and for adaptive research on IPM practices. Based on this, IPM Good
Agricultural Practices will be formulated and disseminated.
Post-harvest management – Post-harvest losses are high, though figures differ per crop.
Rather than increasing pressures on soils, investment in post-harvest management contributes
to enhancing the marketable yields. Existing practices, such as wetting peanuts to increase
weight, may be detrimental as – in the case of this example – growth of fungi is promoted,
which in turn produce unacceptably high concentrations of aflatoxin. PRIDE will transfer
existing knowledge – tailor-made for each crop – to improve timing of harvest, grading of
produce, good storage practices and timing of collection, in order to help reduce losses. Since
several processing companies, traders and associations have storage facilities in the country, it
would seem that larger-scale central storage is already addressed by the market. This implies
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that storage is a commercial activity worthwhile investing in. Local low-cost improved storage
facilities for smallholders will, however, be demonstrated and promoted.
47. Documentation of GAPs. PRIDE aims to define standardised documentation on the GAPs that
it promotes. The aim is to make available well-developed material – primarily to the extension cadre
and lead farmers – for a limited number of GAPs. The GAP fact sheets contain highly visualised
information on the proposed practice and on its relevance and anticipated impact. For each GAP,
information on productivity and profit will be complemented by information on the nutrition impact and
on the importance of diversified sources of nutrition (see also component 2.3).
48. Farmer to farmer extension work: The use of lead farmers has already been proven under
IRLADP and SAPP, and by NASFAM. The lead farmers concept shall be integrated in Farmer Field
Schools, and financial support of the project provided to the group as a whole for their common
activities. Lead farmers – female and male – will initially be identified in consultation with the
leadership and community representatives in the scheme cluster areas. Lead farmers will benefit from
the provision of demonstration packages and from training to build their knowledge of different GAPS
and their skill in extension and communication. In return, the lead farmers will be asked to form
Farmer Field Schools (FFS) comprising representatives from twenty households each. Through the
FFSs, selected graduating farmers with technical capacities, trusted by their peers and leadership
characteristics will form the new lead farmers (facilitators) and establish their new FFS farmers group.
FFSs should have a clear curricula designed for specific crops/GAPs that is jointly developed by
extension, research and the FFS specialists. FAO – Malawi has been already approached and has
offered to assist PRIDE and also the ongoing SAPP in developing the FFS curricula and
implementation arrangements.
49. The approach is expected to create better adaptation of the issues discussed/addressed and
may enable FFS members to rotate in the role of lead farmer, so that different smallholder can
specialise in different practices. Demonstration fields will enable lead farmers to show and discuss the
results of newly introduced GAPs with smallholder farmers in the Farmer Field Schools. In addition to
farmer-to-farmer learning in the Farmer Field Schools, exchange visits will be arranged (see also
component 1.1); especially to show farmers the potential of irrigated agriculture.
50. Agricultural Extension: The performance of the FFS will be guided by extension agents, who
advise on the GAPs and monitor the group’s composition and functioning. PRIDE will on preference
make use of the MOAIWD, so that Agricultural Extension Development Officers (AEDOs), with
support from Agriculture Extension Development Coordinators and District Officers, will train the lead
farmers. PRIDE will invest in order to enable the performance of the extension services: training on
agricultural practices and gender aspects thereof, provision of equipment, including ICT, field gear,
transportation costs and motorcycles (especially for female extension workers). Where the agricultural
extension service is not sufficiently staffed18
to provide full coverage; or where specialised knowledge
(e.g. irrigated agriculture, cooking stoves) is lacking in the service, PRIDE will complement the
extension services by engaging other service providers (NGOs, private sector).
51. Training and extension materials and use of ICT. PRIDE will finance the development and
distribution of high quality training and extension materials including brochures, posters, and leaflets
and the development and broadcasting of extension services by radio. Each GAP will be well-
documented. PRIDE also invests in the use of ICT in extension services enabling quick and cheaper
dissemination of information and giving agriculture a modern image, especially for youth.
52. Inventory and adaptive research – PRIDE relies on existing technology and does not invest
in basic research into new Good Agricultural Practices. Transforming existing GAPs into practices with
demonstrable benefits would in some cases still require two actions: the inventory of potential GAPs,
based on experiences elsewhere in the region; and adaptive trials on farmer fields to confirm the
potential of the new practice. PRIDE will outsource inventories and trials, in order to develop a
sizeable portfolio of Good Agricultural Practices. Special areas of attention, in which to define GAPs,
18
Roughly one-third of the positions in the extension services are vacant, due to GOM’s inability to fund all positions.
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are integrated pest management and optimisation of planting times and irrigation turns in irrigated
commands.
53. Mechanisation. The rental of agricultural machinery on a professional basis is new to Malawi.
Mechanised traction would contribute to storage and availability of soil moisture. Traction helps break
the hard soil layer that has developed just below the root zone by years of superficial soil tillage.
Breaking this layer increases infiltration of rainfall runoff and enhances the depth of the root zone.
PRIDE will purchase two tractors equipped with rippers, to primarily help develop the irrigated
commands in the two regions where PRIDE is active. PRIDE will outsource the operation and
maintenance of this equipment to commercial companies that are able to manage a rental service
with experienced operators and assured maintenance. Smallholder farmers, WUAs and producer
groups and others may hire the service to improve their soil characteristics.
Component 2.2: Market linkages
54. Promotion of market linkages builds on the work undertaken by RLEEP. Presently, it is
estimated by NASFAM that smallholder farmers produce roughly 60% for their own nutritional needs
and 40% for sale. When part of the holding gets irrigated, these figures will change as irrigation allows
for an intensified production under near optimal circumstances.
55. PRIDE aims to link smallholder farmers to existing markets or market opportunities. Better prior
information from the private sector enables farmers to decide which products to grow, to produce
according to the desired quality and at the preferred time. Doing so enables them to get better deals
from the traders. Optimisation of the value chains for key products enable a better match between
production and demand, which would benefit producers, markets and consumers. As MOAIWD has
only few staff engaged in marketing, PRIDE will mobilise service providers for the implementation of
this sub-component. PRIDE will closely analyse the offers of the service providers on their market
experience and intelligence; staff capabilities; inclusiveness of the proposed approach (women and
youth); and adequacy of the proposed work plan.
56. A review of existing Value Chain Analyses and an assessment of market potential led to the
following preliminary selection of crops for which value chains and market linkages would be
strengthened by PRIDE:
High-value cash crops – legumes (pigeon peas, soy beans and peanuts); sunflower for the
internal market and for export; and potatoes for the internal market. These crops are processed
in Malawi; the internal demand is not fully met as yet; and for legumes there is a potential for
export. Export of peanuts can be promoted, especially when the present high levels of aflatoxin
in the product are addressed. Production of sunflower can be optimised if seed of improved
varieties is imported;
Cereals like rice and wheat – These are grown for the internal market and substitute imports.
Both crops have some potential under irrigation, but their financial feasibility throughout the
year needs to be investigated;
Fruits and vegetables – these can be cash crops but revenues depend heavily on the season
and on distance to markets as these products are perishable and the market is periodically
oversupplied;
Cassava – Starch is presently imported, while cassava is already established as a staple crop
and it can be grow on rather poor soil.
57. Farmer Business Schools. The Programme focuses on training groups of smallholder
farmers, known as Farmer Business Schools (FBS), on the basics of commercial crop production
(farm budgets, cost price calculations, use of weights and measures, quality control, grading, storage
and packaging, market intelligence). Where possible, FBSs will coincide with existing organisations
(i.e. created by other programmes) but PRIDE will insist that youth and female smallholder farmers
are represented in crucial positions. The Farmer Business Schools start by inviting private sector
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companies to the scheme cluster areas to gather market information, select crops on the basis of
market information, and to identify preferred trade channels.
58. Each Farmer Business Schools delegates a representative to group meetings with the various
companies, traders and processors. For all representatives of the 780 Farmer Business Schools,
PRIDE organises three group meetings with the private sector over a period of six years to ensure
that the companies and FBS get used to staying in close contact.
59. Producer Groups. FBSs promote cooperation between smallholder farmers to increase their
negotiating power towards input suppliers, traders and processors. Farmers that have received the
basic training will be stimulated to form producer groups, to jointly market their produce and to benefit
from a stronger negotiating position vis-à-vis traders and processors. Producer groups are in principle
loosely organised, as doing business with traders and processors does not require the group to have
a legal entity. Before focusing on formalising their organisational status; groups need to show they
meet their obligations: i.e. delivery of minimum volumes of stipulated quality at agreed times. Only
when it would create better market opportunities, will PRIDE support groups to obtain a legal persona,
such as Agricultural Cooperative.
60. PRIDE hires a service provider to train the FBSs and Producer Groups. Training is provided
over a 3-year period. During this period, the intensity of training will gradually decrease assuming that
from then on the producer groups can function independently.
61. Commodity platforms. A commodity platform represents all actors in a value chain. In a
commodity platform, the value chain actors can collaborate to assess and carry through potential
interventions in the value chain. Options to be reviewed by the platform include market access,
product development, improving productivity, and efficient transactions along the value chain. PRIDE
will facilitate commodity platforms for products or product groups that are relevant to smallholder
farmers in the Programme. Value chain actors to be represented in a commodity platform include
smallholder farmers, producer groups, traders, processors, banks and micro finance institutes,
Ministries and specialised Government Agencies (e.g. National Bureau of Standards), NGOs,
commodity research entities, National Business Women’s Association, Chamber of Commerce, etc.
Commodity platforms already exist for roots and tubers, legumes, dairy and rice. PRIDE supports
existing platforms and to-be-created platforms with studies, training, development of materials, and a
value chain start-up facility; but require the parties represented in the platforms to invest as well, both
in the financial autonomy of their platform and in interventions in the value chain. PRIDE support aims
to help achieve full financial autonomy for the platform in a matter of years.
62. Value Chain Analyses and Market Studies. PRIDE will commission studies to help enhance
the market access and market benefits for smallholder farmers. Market studies are undertaken to
determine the market needs, market size and the competition for a specific commodity, and thereby
confirm the choice – during the initial stages of engagement in a scheme cluster area – of which
commodities to focus on. Value Chain Analyses (VCAs) describe the production chain from field to
table, and the network of actors involved in it. VCAs map processes and structures, identify actors,
and analyse how benefits are distributed. Moreover, a VCA identifies potential interventions in the
value chain, which help generate benefits for all actors in the value chain, including primary
producers. PRIDE will commission both market studies and value chain analyses.
63. Value Chain Start-up facility. PRIDE includes a Value Chain Start-up facility which can be
accessed for specific investments that help improve the value chain and especially the benefits it
generates for smallholder farmers. Investments could include development of tracking and tracing
systems; definition of new product standards, training on quality systems, etcetera. The Value Chain
Start-up facility cannot be used to share in commercial risks; the investments are aimed at enhancing
the efficiency of and value creation along the value chain. Commodity platforms will be encouraged to
submit proposals to the PCO.
64. Irrigation technology window. Finally, PRIDE will help pilot the introduction of in-field
irrigation equipment, such as drip irrigation and sprinklers, by the private sector in Malawi. To this end,
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IFAD will fund an ‘irrigation window’, under the Malawi Innovation Challenge Fund (MICF). This is a
DFID-funded matching grant mechanism, set-up and managed by UNDP. IFAD’s co-funding will
enable the expansion of an irrigation window, whereby eligible private sector companies – preferably
a consortium of commodity wholesalers and irrigation equipment suppliers – can compete for funding
on the basis of submitted business cases. The idea would be for wholesalers to pre-invest in
modernisation of smallholder irrigation in one or more blocks of an irrigation scheme, while the
equipment supplier installs and helps operate precision irrigation equipment. Such equipment enables
smallholder production to more reliably deliver sizeable quantities of high quality and quantities at a
pre-defined time. An allocation of up to USD 2.5 million has been earmarked from PRIDE to support a
specific Irrigation Window for linking private sector commodity wholesalers to irrigation equipment
suppliers, to enhance the former’s sourcing from smallholder farmers. The Irrigation Window has
already received catalytic funding from DFID of USD 0.5 million to be launched during 2015.
Component 2.3: Mainstreaming Nutrition
65. Child stunting and anaemia are endemic in Malawi and their reduction has so far – despite
macro-economic progress – been slow. PRIDE intends to contribute to scaling-up nutrition (SUN) by a
combination of actions. The aim of these efforts is to reduce child stunting by 80% at the end of the
Programme period.
66. Dietary diversity survey. Stunting is the most relevant nutrition indicator for the Programme,
but other relevant indicators will be tracked as well, e.g.: body mass index (BMI) of women of
reproductive age (15-49); Women Dietary Diversity Score (WDDS) and time spent on accessing food,
fuel. WDDS is a proxy indicator for micronutrient adequacy and also a means of measuring impact on
dietary diversity. PRIDE will collaborate with FAO to conduct the dietary diversity survey utilizing the
FAO guidelines on dietary diversity scores. Secondary data on nutrition will be derived from a/o as the
Malawi Demographic Health Survey (MDHS), Multi-cluster Indicator Survey and National
Micronutrient Survey.
67. Scaling Up Nutrition (SUN).The PRIDE approach to nutrition is aligned to the approach that is
embraced by the GOM and by other development partners. GOM has established multi-sectoral
coordination of nutrition programme implementation at national, district, village levels and is planning
to deploy nutritionists in the local councils to improve coordination, monitoring and reporting. The
national Nutrition Education and Communication Strategy (NECS) aims to strengthen and harmonize
nutrition messages and practices from national to grassroots level. In the scheme cluster areas,
PRIDE will engage Food and Nutrition Officers of the Department of Agricultural Extension Services.
At national level, PRIDE will associate with the UN Malawi Nutrition Network and other key partners.
68. Extension services. In principle, extension and training on nutrition will be carried out by the
agricultural extension system, though PRIDE may engage other service providers to complement the
capacity of the government system. Services will be provided to the target group through lead farmers
through established farmer groups, care groups and village associations. Lead farmers are trained by
AEDOs who in turn are trained and supervised by agricultural extension development coordinators
(AEDCs) at EPA level. These AEDCs are coached by Food and Nutrition officers and other relevant
specialists at district level. PRIDE will ensure adequate facilities for female extension workers. The
nutrition focus of agricultural extension will be made tangible in three ways:
By integrating a nutrition perspective in all GAPs promoted and documented by the Programme
(see component 2.1);
By promoting diversified and improved nutritional production and consumption (integrated
homestead food production);
By supporting the introduction of improved cooking stoves, combined with nutrition education.
69. Integrated homestead food production (IHFP) is to facilitate adequate food consumption at
household level. IHFP is an approach to improve diverse food access (primarily proteins, vitamins and
minerals), and to share nutrition information. Nutrition education will encourage adequate
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consumption. Capacity will be developed by supporting training of trainers who can roll-out the toolkit
on IHFP to the villages. PRIDE will collaborate with FAO on this activity.
70. Improved cooking stoves. Rural communities cook over open fire, using locally available
firewood. This practice is detrimental to the already scant forest cover; has bad effects on health due
to smoke combined with lack of ventilation; and requires mainly women and children to spend scarce
time on fuelwood collection. Improved cooking stoves form a climate-smart answer to these problems.
Improved cooking stoves increase the efficiency of fuel wood use by up to 60% compared to open
fires, and thereby reduce the need for women and girls to gather and carry heavy loads of firewood
over long distances. Cleaner, more efficient cooking stoves reduce exposure to smoke. The promotion
of improved cooking stoves forms a generic measure for sustainable land management.
71. From a nutrition perspective, time saved in fuel collection and cooking provides an opportunity
to invest time in the process of cooking itself. During the session that promote the improved cooking
stoves and during subsequent sessions on maintenance; training will be imparted on nutrition and
food preparation. Women form the target group so female extension workers are required.
72. Hardware parts for a total of 15,000 improved cooking stoves and training (installation,
maintenance, nutrition) to a matching number of households will be provided under a single contract.
The target group is strictly female, which requires the involvement of female extension agents. The
women will be offered training sessions every half-year over a 2-year period. Thus, the training on
nutrition and food preparation can adequately reflect seasonal differences between rainy and dry
seasons.
73. PRIDE’s promotion of improved cooking stoves aims to ensure that a private sector able to
produce and market the materials and support services for improved cooking stoves emerges.
Service providers involved in the promotion of improved cooking stoves need to demonstrate how
they intend to establish improved cooking stoves as a regular product in the market. The possible
availability of carbon credits for improved cooking stoves – reflecting their impact on the reduced use
of fuel wood – may be considered to improve the business case for local production and supply, but
the Programme will not assume this, or invest in it, as the costs for documentation, registration and
verification may offset potential carbon revenues from unstable markets. Interested service providers
will, however, have to submit their long-term financing model as part of the tender.
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Appendix 5: Institutional aspects and implementation arrangements
Introduction
1. PRIDE aims to change the situation in which rain-fed farming systems in Malawi are locked, by
simultaneously enhancing the natural resource base and reorienting agricultural practices. Irrigation,
soil conservation good agricultural practices help enhance resilience to the effects of climate change,
whereas irrigation, market linkages and good agricultural practices help enhance resilience to food
crises and economic shocks. PRIDE will be managed separately from the ASWAp framework but it
will coordinate fully with ASWAp to ensure full alignment to government investments and policies.
PRIDE will be implemented in line with GOM’s decentralisation policy. Together, these provide a
framework for service delivery by the districts to the communities. Service delivery starts with
participation of the communities in decisions central to their welfare: where to develop irrigated
commands, where to invest in catchment management; which households to be allocated access to
land? what markets to aim for; which agricultural practices to improve; which households to benefit in
such activities? Improved delivery of services to the communities also requires enabling support to
decentralised structures of the relevant ministries and, where need, supplementing their services by
outsourcing.
Organisational Framework for Programme Implementation
2. Effective Programme implementation will require mobilisation and involvement of different
government and private institutions and effective participation of the targeted households; both with
clearly defined roles and responsibilities at the various levels of operation.
3. The organisational chart (figure 1) shows the main actors in the delivery of services, including
structures specifically added for implementation of PRIDE.
Figure 1: Organisational chart 1- coordinated services
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4. It is important to stress that the figure combines a conventional organogram with a chart
showing relationships. Solid lines signify either hierarchical relationships (e.g. between MOAIWD and
DOI) and service agreements (i.e. between the PCO and service providers); dotted lines signify
support agreements, between the PCO and the decentralised government services, which’
performance it supports. The second point of attention when reading the figure is that the layer
labelled ‘decentralised’ is in fact not a single layer, but consists of regional (ISD, ADD), district and
sub-district (EPA) layers. Whereas irrigation services are present at regional and district levels,
agricultural extension services are represented at all three levels.
5. MOFEPD. The Ministry of Finance, Economic Planning and Development represents GOM to
the financier on matters pertaining to the Programme, and enters the Programme Agreement on
behalf of GOM. MOFEDP is responsible for financing and monitoring and evaluation of government
development projects. The main tasks are: (i) the receipt from IFAD and the timely disbursement of
funds; (ii) Monitoring budget performance; and (iii) ensuring that the government contribution to
PRIDE is made available in a timely manner. Furthermore, MOFEPD coordinates implementation of
MGDS II and interacts with ministries, government departments and agencies involved in PRIDE to
ascertain whether and how PRIDE is contributing to MGDS II.
6. A number of Ministries participate in PRIDE implementation: MOFEPD, MOAIWD, MLGRD,
MLHUD, and MONREM. Senior representatives of these ministries provide strategic oversight through
a Programme Steering Committee (PSC) under the chairmanship of the PS (Irrigation & Water
Development) of the Ministry of Agriculture, Irrigation and Water Development (not shown in figure 1).
7. MOAIWD. The Ministry of Agriculture, Irrigation and Water Development is the lead agency for
Programme implementation. It coordinates PRIDE activities within the ASWAp framework and as
such prevents overlaps between (donor-funded) programmes, including SAPP and RLEEP; and
assures coherence in approaches and cross-learning between initiatives. MOAIWD vests the day-to-
day Programme oversight in the Department of Irrigation.
8. DOI ensures coherence with IMPIF, draws lessons from Programme implementation for IMPIF
and ensures cross-learning in the irrigation sector. DOI will establish a dedicated stand-alone
Programme Coordination Office (PCO) for the coordination of the Programme implementation. The
PCO is responsible to mobilise the agencies and organisations involved, or to be involved, in the
delivery of services to the target households. This includes engaging, and where need be supporting,
line agencies to deliver the services within the framework of PRIDE; as well as the enrolment of
additional and specialised service agencies.
9. The PCO is staffed by dedicated and highly qualified personnel who are recruited from
government or from the labour market. Recruitment of key PCO staff requires prior consent from
IFAD. The PCO will include a senior Programme Director, a Procurement specialist, a Financial
Management specialist, a WUA specialist, an Environmental Coordinator, A Gender and Targeting
specialist, an Irrigation Engineer, an Agriculture Specialist, a Value Chain Specialist and a Planning,
Monitoring and Evaluation specialist. The latter will be charged with Knowledge Management as well.
The staffing of the PCO is presented in table 1, and its structure is shown in figure 2.
Table 1: PCO staff, including the components to which their cost is charged
# Designation Cost component
1 Programme Director Programme management
Financial Management and Procurement Support Staff
2 Procurement specialist Programme management
3 Financial Management specialist / controller Programme management
4 Accountant Programme Management
5 Assistant Procurement Officer Programme management
6 Assistant Accountant Programme management
Technical coordinators
7 WUA specialist Component 1.1
8 Environmental Coordinator Programme management
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# Designation Cost component
9 Gender and Targeting specialist Programme management
10 Irrigation Engineer Component 1.2
11 Agriculture (and extension) Specialist Component 2.1
12 Value Chain Specialist Component 2.2
13 Planning, Monitoring and Evaluation specialist Knowledge management
Administrative and logistic support staff
14 PM&E Officer Assistant Programme management
15 Administrative assistant Programme management
16 Office Assistant/Receptionist Programme management
17 Driver (4) Programme management
Programme Facilitation Offices
18 Programme Coordinator (North) Programme management
19 Programme Coordinator (South) Programme management
20 Assistant Coordinator North Programme management
21 Assistant Coordinator South Programme management
Figure 2: Structure of the Project Coordination Office
10. The PCO is staffed by dedicated and highly qualified personnel who are recruited from
government or from the labour market. Recruitment of key PCO staff requires prior consent from
IFAD. The PCO will include a senior Programme Director, a Procurement specialist, a Financial
Management specialist, a WUA specialist, an Environmental Coordinator, A Gender and Targeting
specialist, an Irrigation Engineer, an Agriculture Specialist, a Value Chain Specialist and a Planning,
Monitoring and Evaluation specialist. The latter will be charged with Knowledge Management as well.
11. The PCO will: (a) oversee the preparation and submission to IFAD of PRIDE AWPBs;
(b) coordinate through the structures described here the PRIDE implementation at the different levels;
(c) support concerned departments, districts and other relevant organisations in implementing PRIDE
activities; (d) assign qualifying service providers to deliver performance-based and sustainability-
oriented services; (e) coordinate with relevant institutions at local level (see later) to ensure effective
implementation of PRIDE activities; (f) monitor and evaluate the performance of Programme activities
in all participating areas; (g) prepare and submit six-monthly progress reports and periodic reports;
(h) develop and apply systems and guidelines to ensure that PRIDE is implemented according to the
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GOM and IFAD procedures; and (i) ensure compliance by all actors involved in PRIDE to agreed
standards, protocols and agreements.
12. The PCO will be assisted by a Technical Advisory Team representing the departments involved
in project implementation, including Land Resources, Extension, Research (under MOAIWD), as well
as the Department of Land (Ministry of Lands, Housing and Urban Development), the Environmental
Affairs Department (Ministry of Natural Resources, Environment and Mining); the Debt and Aid
Department of the Ministry of Finance, Economic Planning and Development; and others as needed.
13. MLGRD. The Ministry Local Government and Rural Development is responsible for government
structures at the local level. MLGRD will: (i) provide policy and technical guidance on how PRIDE
would interface with local structures for effective implementation (see also later); (ii) supervise
implementation of sub-projects and coordinating financial management at the local level; and
(iii) through the RLEEP, assist in approaches and activities related to market linkages and value chain
development under sub-component 2.2.
14. MLHUD. The Ministry of Lands, Housing and Urban Development is responsible to provide
secure land tenure for smallholder farmers involved in the target irrigation schemes and promote
equitable land access of target beneficiaries. Existing practices developed under IRLADP will form a
point of departure, but the emphasis will be – more than before – on devising arrangements that
provide smallholders a continues access to irrigated land, both over seasons and over years.
15. MONREM. The Ministry of Natural Resources, Environment and Mining (i) ensures that PRIDE
implementation is in compliance with the Malawi Environmental Management Act (1996); (ii) oversees
the development and implementation of the Environmental and Social Management Plans;
(iii) supports all climate change adaptation activities; and (iv) has an oversight role of monitoring their
implementation to establish whether these outlined measures contribute to the resilience of
communities with respect to the identified climatic events, such as droughts and floods.
16. Private Sector and NGO service providers will be engaged by the PCO to deliver specialised
(e.g. irrigation design) or additional services (e.g. where agricultural extension services are
understaffed) as required for the successful implementation of the Programme. Services are procured
through competitive bidding. Contracts are performance-based and are subject to regular supervision
and review. Service providers would include: social organisers, engineering and agricultural
consultants, design and supervision firms, civil works contractors, firms specialised in social and
environmental due diligence (including at times resettlement), agencies supporting smallholder
agriculture and market linkages, specialists in improved cooking stoves, business development
services, study consultants for market and value chain analyses, and others as required.
17. The market for services will be stimulated to aim at sustainable outcomes. The PCO will play an
important role in defining – in consultation with the market parties – contracts and conditions that
share the responsibility for the Programme objectives with the service providers. To this end, at least
one integrated Design – Build – Transfer contract will be developed and tested for the establishment
of smallholder irrigated land. Also, when providing material support – such as the provision of
improved cooking stoves or tractor services – contracts will be geared to harness market incentives
and aim for establishment of self-financing services.
18. The existing and additional agencies supporting the scheme cluster areas work from a known
mandate but parallel interventions may cause some loss of efficiency. Therefore, they will form an
Implementation Team per scheme cluster area. In order to contribute to effective coordination and
communication at the decentralised levels of Programme implementation. – and given the spread to
northern and southern regions – the PRIDE PCO will include two Programme facilitation offices,
staffed by a Coordinator for two ISDs.
19. A parallel development pursued by PRIDE – but not shown in the above figure – is the support
to Commodity Platforms. These are platforms for a specific product (e.g. rice) or group of products
(e.g. legumes) that represent all stakeholders in the value chain of that commodity. These platforms
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seek to optimise the value created by the commodity, whether by addressing bottlenecks at
production, processing or marketing.
Organisational Framework for Beneficiary Participation
20. Successful delivery of services requires active and well-organised participation by the
communities in the scheme cluster areas. Structures are needed whereby communities participate
effectively in preparation, implementation and joint review. Figure 3 gives a schematic presentation of
the structures through which target households participate in the Programme.
Figure 3: Organisational chart 2 – coordinated participation
21. PRIDE will enter the selected scheme cluster areas through existing leadership structures at
community level; i.e. the traditional authorities (chiefs) and the Village Development Committees.
Backing of these levels is not a formality, but an essential step to secure long-term support for the
transformation that PRIDE intends to bring to rural communities. The existing leadership carries
already responsibilities for an ambition similar to the programme goal and objective: i.e. a well-
nourished and prosperous rural community for now and for generations to come. By focussing on this
level of ambition, the existing leadership – possibly with some reassurances from MLGRD – will
provide backing to the Programme.
22. For reasons of efficiency, the existing leadership (Chiefs and VDCs) will be asked to assign a
combined village committee specifically for the preparation, implementation and review of the
Programme in a selected scheme cluster area. This committee needs to be well-mandated and will be
charge by the existing leadership with a responsibility towards achieving the Programme outcomes:
new infrastructure for soil and water management and new practices in agriculture and marketing.
PRIDE will prepare materials that help explain the mandate of existing leadership and combined
village committees; and support the combined village committee in its interactions with their
community at large.
23. The combined village committee takes part in preparing and reviewing the main lines of the
activities in the scheme cluster areas. To this end it will initiate several structures through which
smallholder farmers can participate in the detailed planning and implementation of the Programme.
These structures are different in nature: a unified and well-structured organisation is required for
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handling land and water resources within the to-be-developed irrigated command areas; whereas
various loosely organised producer groups can coexist in parallel.
24. For detailed planning of the irrigation works, of the allocation of land access and of the capture
and distribution of water an interim committee (WUA establishment committee) will be formed, which
is charged with (i) the organisation and establishment of a Water Users’ Association (including a
constitution and byelaws and allocation of responsibilities); (ii) ensuring user views and knowledge is
reflected in the scheme design; (iii) the formulation and negotiation of a land and water agreement,
which secures land access and compensates project affected people; and (iv) a scheme investment
agreement, which specifies responsibilities during and beyond scheme construction.
25. When all agreements (constitution & byelaws, land and water agreement, scheme investment
agreement) are ready final draft, a Water Users’ Association is to be formed, representing all
households benefitting from the irrigation system. The WUA’s general assembly elects and mandates
an executive committee, which forms several task committees, including a construction supervision
committee (which in due course becomes the O&M committee); a financial committee; a land matters
committee and others as required.
26. The WUA supervision committee will liaise with the contractor to maintain irrigation activities
during the construction period and expediting completion of the works. The WUAs will participate in
construction supervision and final certification, and be trained to monitor the construction activities,
identify and resolve problems which may arise between the private contractors and water users,
understand the process and procedures for construction scheduling and assessment of damages to
private land or property during the construction. This will put the WUA in a strong position to take on
the operation and maintenance of the scheme. The construction schedule would be discussed with
WUAs leadership to allow water users make any necessary contingency plans for irrigating their land.
Similarly, changes in the construction schedule will be with prior consensus of the WUA leadership.
27. While the organisational foundations are fairly heavy for the irrigation scheme; the works for
preventing and reversing land degradation take place on a different organisational basis. The
combined village committee is responsible for prioritising intervention areas. PRIDE will review these
against geographical information and feasibility. For each to-be-addressed intervention area, the
combined village committee will for a conservation group, comprising representatives of smallholder
households willing to maintain the to-be-implemented works in return for reaping the opportunities that
the intervention area may offer. The conservation group is bound to make wise use of the resources;
which includes patchwork repair and maintenance. In return, they benefit from wood- and non-wood
forest products and cut & carry fodder, as the case may be.
28. The dissemination of good agricultural practices relies on the involvement of lead farmers. The
combined village committee will make an initial selection of farmers wiling to coach a group of
smallholders in return for knowledge of good agricultural practices; capacity building and
demonstration starter packages. The lead farmers can benefit from Programme support (through
extension services of government of non-government agencies) provided she or he enlists as their
audience a group of smallholder farmers representing twenty households. This may well be an
existing grouping (e.g. a FFS established by another programme or an existing group such as a youth
committee).
29. The representatives of the twenty households form a Farmer Field School (FFS). They start of
on a first GAP, which will be demonstrated by the lead farmer in her or his own fields. Subsequently,
members can take turns in the lead farmer role, as new GAPs are being offered by the Programme
through the extension services.
30. For market linkages a dual approach is followed. At first – through facilitation by the combined
village committee – Farmer Business Schools (FBSs) will be formed, that are supported in doing a
market analysis and in basic crop budgeting. The FBSs will be helped to seek interaction with traders
at local, regional and national level, to better their prospects for the sale of products meeting the
prevailing requirements for quality, quantity and timeliness.
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31. Smallholders engaged in a specific crop are promoted to form Producer Groups, which are
encouraged to bulk, grade and transport their products jointly; and which can benefit from negotiating
better deals with the market parties. Representatives of the producer groups participate in the
commodity platforms that seek new opportunities for creation of surplus along the value chains for
specific product groups.
Implementation Arrangements (selection)
32. Implementation of PRIDE will be guided by a number of work processes (or procedures). For a
large part these have been describes in appendix 4 (Detailed programme description). In the present
appendix (#5), processes with respect to Programme management are identified and briefly described
in so far these are not included in appendices 6, 7 and 8. These address work procedures for,
respectively planning, monitoring & evaluation and knowledge management; financial management
and disbursement arrangements, and; procurement. Taken together, appendices 4, 5, 6, 7 and 8 lay
the basis for the PRIDE Programme Implementation Manual (PIM). A draft table of contents of the
PIM is included in appendix 11.
33. Policy alignment. PRIDE will be fully coordinated with the ASWAp framework under the
earmarked funding mechanism. This in practice would rule out duplication of services in one area.
Moreover, the ASWAp framework provides possibilities for cross-learning between initiatives and for
upscaling of successful approaches. The process of policy alignment to ASWAp is managed by the
MOAIWD. Alignment to the Irrigation Master Plan and Investment Framework is managed by DOI;
and offers similar advantages and opportunities. While being fully coordinated with ASWAp, PRIDE
will be managed independently.
34. Portfolio synergies. Closely related to the above policy alignment is the effort to ensure that a
single donor – in this case IFAD – focusses on a coherent portfolio of development projects or
programmes. To consolidate and rationalise the IFAD-supported portfolio in Malawi, implementation
of the different Programmes within the portfolio (PRIDE, SAPP and RLEEP) will be interlinked so that
the Programmes can fully exploit their respective comparative advantages. This will enable
specialisation by the different Programmes in their core areas of irrigation and catchment
management (PRIDE), good agriculture practices (SAPP), agricultural commodity value chain
strengthening and market linkages (RLEEP), and rural finance services (for a future rural finance
Programme). This will exploit the synergies within the portfolio, eliminate duplications and contribute
to efficiency.
35. Programme steering. The PS (Irrigation & Water Development) of MOAIWD will convene and
chair a Programme Steering Committee (PSC), with senior participants from the Ministries identified
above. Based on the semi-annual progress reports and proposed resolutions by the PCO, the PSC
will take strategic management decisions.
36. Programme Management. The PCO is the PRIDE management team tasked with planning,
budgeting and monitoring of programme activities, and reports on progress against the agreed
development objective and outcomes. As such it will mobilise agencies – either by enabling existing
services or outsourcing required services – to work with the communities in the scheme cluster areas.
The work of the decentralised agency staff will be facilitated by investments in transport,
communication and service delivery. Where these agencies lack adequate numbers of staff or miss
the prerequisite competence, the PCO will engage service providers, such as NGOs working on
agricultural development and specialised engineering services.
37. The PCO is structured along functional specialisations (as opposed to a regional
specialisation19
). This means that nearly all work processes – and certainly those described in
components 1 and 2 (see appendix 4) – cut across the functional responsibility of several staff
members. For the development of the irrigation schemes, for example, the WUA Specialist is
19
To offset the risk of a too rigid management along lines of technical specialisation, two regional facilitation offices are
established under the PCO, which will provide communication and coordination at the implementation floor.
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responsible for defining and adhering to the requisite decision-making procedures, including
consultation and prior consent on land consolidation, environmental assessment and mitigation and
WUA capacity building. He/she is informed by the technical specialist (in this example the irrigation
engineer) of the steps in the engineering process, from detailed design to hand-over and prepares a
planning per scheme cluster area based on all these procedures. The irrigation engineer is
responsible to define all technical targets (irrigated area, benefitted farmers, irrigator capacities,
beneficiary contributions, agency and programme contributions, etc.) and to define the responsibilities
of agencies, service providers and water users. The Procurement Officer prepares, based on the
inputs given, terms and conditions for outsourcing and for agency involvement; and translates this into
legally binding agreements. The procedural planning by the WUA specialist, the targets defined by the
technical specialist and the conditions set by the procurement officer, along with associated costs are
recorded and reviewed by the Planning, Monitoring and Evaluation Officer. He/she keeps abreast of
progress and issues warnings within the PCO if progress is behind or below target. He/she also keeps
an active eye on the risks associated with the programme. The Programme Director has the overall
overview, is responsible for all decisions (though at times delegated to his/her staff) and maintains
liaison with the steering committee, parent ministries and representatives of IFAD. Similar descriptions
can be given for the construction of soil- and water conservation infrastructure, for the establishment
of good agricultural practices and for the development of market linkages.
38. The choice for functional specialisation has been made especially because it requires
professional involvement of a team of experts in core decisions in the Programme. Opposing the
insights of different disciplines on a single process, enables decisions to be made that reflect
information from different perspectives. To achieve this, good interplay between the staff members of
the PCO is a prerequisite for the success of PRIDE. The following table gives a general description of
the roles of the PCO professional staff and how their duties combine for each process and for each
outcome of PRIDE.
Process steps /
Outputs
WUA
specialist
Technical
specialists
(irrigation,
crops and
value chains)
Procurement
Officer
PME
specialist
Programme
Director
Process 1:
Preparation
Define and
maintain process
steps,
stakeholders
involvement and
time frame
Define and
supervise
outputs required
from service
providers
(outsourced and
agencies)
Define contract
conditions for
outsourced
services and
select the required
procurement
method;
Define modalities
and terms of
agreement for
enabling of
agency services
Review planned
progress in
terms of time,
funds and
outputs; Signal
delays and
monitor
programme
risks
Ensure good
team play by
the PCO staff
Ensure
coherence in
management;
Take and
communicate
key decisions
Process 2:
Implementation
Process 3: Review
Outcome 1:
Infrastructure
Outcome 2: Good
Agricultural
Practices
Outcome 3: Market
linkages
39. Coordination. PRIDE’s success not only depends on good team work within the PCO; it also
requires the constructive engagement of concerned agencies at all levels of the Programme. In
section I of this appendix, two coordination teams have been introduced: the Technical Advisory
Team at national level, and the Implementation Teams at the level of single scheme cluster areas.
The Programme Design Group established in 2013 will transition into the Technical Advisory Team.
40. Cooperation partners. PRIDE implementation can benefit from cooperation with specialised
institutions. During design, a number of options have been identified. Where financial means change
hands, formal agreements will be developed, but otherwise the focus is on building relationships of
mutual trust:
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UNDP: IFAD will sign an interagency agreement with UNDP which will include the schedule of
funds for disbursement for establishing and managing the MICF Irrigation Window. There will
be no extra charges for management as this service is already paid for by DFID.
JICA: A JICA-funded and assisted capacity building programme for DOI is due to commence
during 2015, with a focus on capacities for small-scale irrigation scheme development and
management. PRIDE and JICA can mutually benefit from an exchange of experiences,
guidelines and manuals for irrigation development.
FAO: The ongoing FAO-Economics and Policy Innovations for Climate-Smart Agriculture
(EPIC) programme in Malawi is generating a base of evidence to undertake informed policy
decision and develop institutional arrangements to transform and re-orient smallholder
agricultural systems to effectively and sustainably support food security under the new realities
of climate change. Building on this effort, FAO will support PRIDE by: (i) extending and
consolidating analytical evidence about the productivity, resilience and mitigation effect of
climate-smart agricultural practices and their adoption at smallholder level, therefore
contributing to the selection of best suitable good agricultural practices in the (irrigated and rain-
fed) areas where PRIDE interventions will be implemented; (ii) developing a coherent
institutional and policy framework to account for synergies between food and security nutrition
and climate change adaptation also facilitating the policy dialogue between different Ministries
and key stakeholders; and (iii) contributing to the definition of a nationwide strategy to promote
the implementation of resilient good agricultural practices identifying requirements, and
formulating options for barrier removal to facilitate the roll-out of the newly established systems
in other suitable areas of Malawi. FAO’s contribution will be in kind through technical and policy
support. Should more support be needed, PRIDE can allocate part of its budget for the
identification and adaptation of GAPs to EPIC.
Regional and international agricultural research agencies. The Kasinthula Agricultural
Research Station is Malawi’s research facility for smallholder agriculture. It interacts with
various regionally operating research stations, including ACIAR, Association for Strengthening
Agricultural Research in Eastern and Central Africa (ASARECA) and Centre for Agricultural
Research and Development for Southern Africa (CARDESA). PRIDE will primarily benefit from
off-the-shelf good practices, but may allocate some of its resources for adaptive research on
good agricultural practices, especially in irrigated agriculture.
Global Land Tools Network (GLTN). It is proposed that tracer studies be implemented to
understand dynamics and impact of land tenure arrangements in irrigated agriculture. GLTN will
be PRIDE’s partner in developing the approach for these studies. The partnership between
IFAD and GLTN, through the Tenure Security Learning Initiative (TSLI) is sufficient to formalise
and operationalise this partnership.
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Appendix 6: Planning, M&E and learning and knowledge management
1. The 2001 National Irrigation Policy and Development Strategy (NIPDS)requires an effective and
feasible sector-wide M&E framework to track poverty reduction through irrigation. JICA is supporting
MOAIWD to develop a streamlined database and M&E framework and strengthening government staff
to collect, analyse and use data/information.
2. Programme Approach. PRIDE’s approach to Planning, Monitoring and Evaluation (PM&E)
and Knowledge Management (KM) will build in line with the NIPDS strategy and MOAIWD M&E
framework and the IFAD requirements based on emerging best practices of the IRLADP and the other
IFAD initiatives. Guiding principles that PRIDE’s PM&E will follow are:
harmonise the framework with other M&E systems and key indicators of government;
align PRIDE indicators with other IFAD programmes for a rationalised portfolio;
adopt results-based management, based on outputs and outcomes indicators to capture
change in the target groups and track poverty reduction and gender and youth related issues;
use of objective-oriented Logical Framework and Annual Work Plan for planning and
monitoring;
use standardised and simple mechanisms of data collection for decentralised data entry to be
systematic and accountable at district level and consolidation at PCO level; and
develop learning, innovation and KM mechanisms as integral part of PM&E.
Key performance indicators
3. The Logical Framework identifies outcome indicators that include adoption rates, numbers of
participants, area irrigated and area protected. Major output indicators include number and area of
irrigation sites developed or rehabilitated, number of staff and farmers trained and value addition
based on income. The logical framework includes indicators for which the collected data are
disaggregated by gender, age and wealth class, to track the inclusiveness of implementation (or lack
thereof). The indicators will be aligned to the COSOP, the MOAIWD and ASAP requirements and
monitored by the PRIDE M&E system. Specific key indicators are described in table 120
:
Table 1. Summary of Key Indicators
1. Irrigation Development and
Catchment Management
Outcome 1. Improved land and
water management in selected
smallholder irrigation schemes
and related catchments
Effectiveness: 15,750 farmers with secured access to land and water (RIMS 2.1.2)*
Incremental hectares of crop grown (RIMS 2.1.2) on irrigated land in different seasons (5,200 ha; 4,000 ha; 1,000 ha)
15 WUAs (and to be defined number of erosion control groups) managing infrastructure formed and/or strengthened (RIMS 1.1.2)
5,200 ha land under irrigation schemes constructed or rehabilitated (RIMS 1.1.5)
5,200 ha land consolidation and tenure arrangements completed
1,000 ha land with rehabilitated or restored ecosystem services (RIMS 1.1.17)
2. Agriculture for Irrigation and
Rain-fed systems
Outcome 2. Increased,
diversified, sustained and
climate-resilient smallholder
agricultural production in the
wet and dry seasons
17,000 farmers reporting production/yield increase (RIMS 2.2.2) of at least 20% for rainfed crops*
780 lead farmers and 15,000 FFS members trained in crop production practices and technologies (RIMS 1.2.2) specified for lead farmers and FSS attendants
780 lead farmers and 15,000 FFS members trained in post-production, processing and marketing (RIMS 1.4.1)
15,000 women trained in preparation of nutritious meals in 2 seasons
20
All indicators will be gender disaggregated.
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1. Irrigation Development and
Catchment Management
Outcome 1. Improved land and
water management in selected
smallholder irrigation schemes
and related catchments
Likelihood of sustainability: 15 WUAs are operational (RIMS: 2.1.1)
Effectiveness: 15,700 farmers with secured access to land and water (RIMS 2.1.2)
5,200 ha of newly irrigated under WUA management and 1,000 ha of recovered land under conservation group management
2. Agriculture for Irrigation and
Rain-fed systems
Outcome 2. Increased,
diversified, sustained and
climate-resilient smallholder
agricultural production in the
wet and dry seasons
17,000 farmers report yield increase from improved agricultural production
17,000 farmers report adoption of recommended climate smart Good Agricultural Practices
15,000 farmers reporting increased incomes (exceeding MWK 100,000 per annum) through marketing of agricultural products against baseline, by gender and wealth class
13,500 households report a 50% reduction in the use of firewood
4. The relevant COSOP indicators that PRIDE will contribute to through the monitoring proposed
include: (a) number of farmers adopting promoted technologies and practices; (b) number of farmers
with secure access to water; (c) number of WUAs operational; (d) hectares of land with improved
management through soil and water conservation measures; and (e) number of farmers trained in
good agricultural practices and marketing.
5. RIMS. The M&E system will satisfy minimum requirements by IFAD to report on a number of
results and impact indicators of direct relevance to PRIDE to be identified and agreed. Data and
information on the RIMS indicators will be reported preferably within the context of regular progress
reports using a standard tabulated format. First-level RIMS results (outputs) will be included in an
annual RIMS form that the PCO will complete and send to IFAD. The deadlines are communicated by
IFAD annually and are normally scheduled for the end of March. When second-level results
(outcomes) become available, these will be reported with the first-level RIMS results. Third-level RIMS
results (impact) will be reported to IFAD twice; once at midterm and once at completion. Output
indicators will be reported annually in March based on the previous year-end.
6. The seven-year Programme’s Development Goal is that "Rural communities are resilient to
food insecurity, climate change and economic risks ", which is aligned mainly within the Strategic
Objective 1 of the COSOP “Improve access of the poor to appropriate technology and services for
sustainable natural resource management” and National priorities. Achievement of this goal will be
measured both through an increase in social and production assets and a reduction in food insecurity
and in the prevalence of child malnutrition. This will be monitored using sample household surveys,
participatory impact monitoring and government statistics where available.
7. The PDO is "Sustainably enhanced production by smallholder farmers for household nutritional
demands and for income generation from viable markets". The success of PRIDE will be assessed
and evaluated based on the following indicators:
Number of smallholder households able to satisfy their food and nutritional needs with surplus
available for sale (disaggregated by gender and age);
Number of smallholder farmers reporting enhanced incomes;
Number of smallholder farmers receiving Programme services.
Monitoring and evaluation system
8. The PM&E Officer in the PCO is responsible for planning, monitoring, reporting, evaluation,
learning, knowledge management and communication, as well as ensuring appropriateness and
efficiency of implementation related to targeting (gender, geographical, time, etc.). The PM&E Officer
will take responsibility for: special studies, planning and reporting; relations with service providers;
gender and targeting; communications and knowledge management; cross-component learning: and
organisation of workshops, stakeholder relations and other events. The strengthened community level
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institutions such as existing leadership, combined village committee, WUA, conservation and
production groups will play a key role in the participatory monitoring of the environmental and climate
change adaptation measures.
9. AWPB. Programme planning will be an on-going and participatory process with AWPBs forming
the backbone of the planning. The AWPBs, together with the Logical Framework’s quantified results-
based indicators, will be the basis for monitoring PRIDE. Monitoring starts at the lowest level of the
Logical Framework and will capture all four levels of results (activities, outputs, outcomes and impact)
on a continuous basis. Conclusions from PM&E will be enriched with feedback that comes from on-
going generation of lessons learned, best practices, beneficiary and stakeholder stories also defined
as learning and knowledge management.
10. The AWPB will be the key instrument for implementation and operational control. The AWPB for
the first year will be based on the PRIDE design and prepared by a small team of experienced staff.
Training will be given to the PCO in the preparation of AWPBs. The PCO Programme Coordinator will
oversee the AWPB process and ensure that all stakeholders are fully involved. The PM&E Officer will
be responsible for coordinating the preparation of AWPB, its consolidation, and presentation to the
PSC, finalisation and submission to IFAD. The Financial Controller will provide costs, incorporation of
the financing plan and disbursement arrangement. The Procurement Specialist will prepare the
procurement plan. From year 2 onwards, a decentralised, inclusive and demand driven planning
process will be undertaken. The approved AWPB by the PSC and IFAD will be the authority for the
PCO to conduct activities and incur expenditure.
11. PRIDE’s annual planning and implementation cycle will be aligned with GOM’s main planning
cycle. The fiscal year goes from July to June while budget preparation extends from January to May.
Budget ceilings are issued between February and May before the budget goes to Parliament for
approval in late June. The DOI provides backstopping support to districts in the initial stages. An
annual water sector review report is prepared by MOAIWD within 60 days of the end of the fiscal year.
This report is based on the planning for the previous year and explains which targets have been met,
which ones have not and why. This report forms the basis for an annual joint water sector review in
December that makes a performance assessment of the Ministries and the sector during the previous
year. The water sector review then feeds into the MGDS review mechanism.
12. Management Information System. The PCO M&E Officer will establish a management
information system (MIS), using dedicated software to collect data from various levels. The MIS
database will be aligned to the PRIDE Logical Framework Indicators selected from the RIMS,
MOAIWD, COSOP and National M&E master plan indicators. Web-portals for easy viewing can be
considered, if deemed relevant by service providers and beneficiaries. External support will be
recruited for designing and establishing the databases and support to the IT infrastructure.
13. PRIDE and service providers will ensure that stories are collected on a regular basis, providing
factual information, already from baseline. Such testimonies are especially relevant for documenting
programme attribution on higher level impacts. Photo archives will be kept as part of structuring
qualitative information. To ensure an effective flow of information, the M&E Officer will develop simple
and user-friendly tools for data collection, data entry, data processing and analysis. Standard forms
and formats will be made available to ensure consistency in the way data is recorded. These tools are
needed at each of the four levels of the logical framework (activities and resources; outputs;
outcomes; and impact) and will include:
Standard formats for submission of financial returns on at least a monthly basis;
A spreadsheet, database or accounting software to enter data and produce financial summary
information (tables, graphs);
Standard forms, based on the AWPB, to record progress and expenditure for each planned
activity on a quarterly basis, and standard computer-based formats or templates to enter such
data in a consistent manner, to facilitate consolidation;
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Standard forms to record results, in terms of activities completed and specific outputs
produced, which will be the basis for physical progress summary information, and standard
computer-based formats or templates to enter that data consistently; and
Standard forms and computer-based formats or templates to enter data on PRIDE resources, in
particular registers of assets and contracts.
14. Reporting. A functional monitoring and MIS will provide the data needed to prepare progress
reports. Results will be submitted in summary form in quarterly, half-yearly and annual reports to the
PSC and IFAD. The AWPB is the starting point to monitor physical progress (actual implementation
compared to planned activities) and financial progress (actual expenditure compared to budget).
15. Progress reports. Progress reports present a full picture of programme resources, annual and
cumulative physical and financial achievements, analysis of successful approaches and outputs,
failures and constraints, and whether progress is being made towards achieving objectives. Progress
related to outcomes and overall goal cannot be expected until a reasonable period after interventions
and delivery of outputs has passed, however there is need to systematically collect data related to the
outcomes and goal almost from the beginning. In the first Annual Report, this may take the form of
mentioning some of the key findings of baseline survey work that have been carried-out. From the
second year onwards, the programme needs to start analysing whether outputs that are being
produced are actually leading to changes and benefits among the target group.
16. Evaluation. Evaluation by the PCO will ensure that activities being implemented are achieving
the stipulated performance and resulting in the desired impact. A particular focus will be the
assessment of the effectiveness of the programme on poverty alleviation and its impact of each
activity in terms of gender, and categories of households: male-headed, female-headed and youth. In
addition, attention will be paid to the beneficiary contribution: regular monitoring will confirm that this
contribution does not exceed 20% of the scheme development cost and takes into account the
individual contributions of land and crop loss as well.
17. Baseline, mid-term and completion surveys. These studies are undertaken at start, middle
and end of the programme implementation period and identify, verify and track impacts. A baseline
survey will be undertaken to benchmark the existing situation as part of the design of each irrigation
scheme. The baseline studies and follow-up surveys combine collection of basic demographic and
socio-economic data with application of the Multidimensional Poverty Assessment Tool (MPAT), in
order to understand and gauge impacts on poverty reduction. The Women Empowerment in
Agriculture Index (WEAI) will also form part of the baseline and follow-up surveys in each scheme
cluster area. The WEAI helps track changes in women’s empowerment levels as a direct or indirect
result of an intervention.
18. Tracer studies will be undertaken on land and water tenure and governance in coordination
with the Global Land Tools Network in the context of IFAD’s regional Tenure Security Learning
Initiative (TSLI).
19. Mid-Term Review (MTR). A MTR will be conducted halfway through implementation (towards
end of year 3) to assess the performance and impact and its progress against the established
objectives, the efficiency and effectiveness of PRIDE management, and the validity of PRIDE design.
Recommendations for revisions to the activities and approach, the Logical framework targets, may be
made if required.
20. Programme Completion Report (PCR). At the end of the implementation period, a PCR will
be compiled to provide an overview of the accomplishments of PRIDE. The PCR should inform the
rationale for and orientation of a follow-on investment programme.
Learning mechanism and knowledge management (km)
21. PRIDE aspires to be relevant for the smallholder agriculture sector as a whole. This determines
that lessons from experience have to be drawn and shared with stakeholders in the sector as a whole.
PRIDE is not aimed at the development of new policies and strategies at the national level; but aims
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to inform this level of relevant experiences and good practices. The contribution of PRIDE to the wider
policy debate in the smallholder agriculture sector comes in the form of factsheets, which document
lessons learned.
22. Factsheets find their origin in the monitoring and evaluation system described above, and
especially in the reviews and participatory assessments. Here, important lessons are identified and a
first version of the lessons is described. PCO staff and hired hands where needed, elaborate the
lesson learned in a draft factsheet. This is a concise description, with reference to additional
information and informants. The PCO will develop a standard format for the factsheets.
23. Draft factsheets are reviewed and improved upon through small expert workshops with
concerned stakeholders. The idea is to confirm the relevance of the lesson learned, to improve upon
the description and to contemplate the implications of such a lesson for the policy framework for
smallholder agriculture. Factsheets that do not create a stir, will not be published and disseminated.
24. Once factsheets are finalised, they will be disseminated using the websites of the Programme
and of the MOAIWD; and where possible websites of relevant institutions, such as research agencies.
Moreover, the factsheets will be presented in national workshop on key programme themes (climate-
smart agriculture, value chains, land tenure, smallholder irrigation).
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Appendix 7: Financial management and disbursement arrangements
Country Issues/Overarching assessment of inherent risk
1. Transparency International's Global Corruption Perception Index score for 2013 and 2012
Malawi remained constant at 37 (scale 0- high risk and 100 -low risk) as medium risk. Malawi is
ranked 91 over 177 countries monitored.
2. IFAD’s Rural Sector Performance score provides a focused assessment of the potential risk
in the rural sector. It is an indicator of accountability, transparency and corruption in the rural areas.
The 2014 RSP E(ii) score for Malawi is 3.75.which is also a medium risk category.
3. Risk has increased due to a large government corruption scandal towards end of 2013, which
led donors to temporarily suspend aid disbursement to Malawi.
4. In a bid to strengthen the public financial management framework and systems, the GOM has;
(i) established independent audit committees for ministries departments and agencies; (ii) carried-out
a forensic audit of the IFMS; (iii) engaged an IT security officer based at the Accountant Generals
Department to monitor unlawful transactions on the IFMS; (iv) cleared a backlog of Government
accounts reconciliations that were last carried-out in July 2013; and (v) speeded up the trial of cases
for officers implicated in illegal transactions. However, the full impact of the Public Financial
Management reforms is only expected to be achieved fully in one to two years’ time at best.
5. Although the Malawi Public Financial Management (PFM) systems will be used under PRIDE,
additional mitigation measures have been proposed as part of this assessment to complement the
country financial management systems. The MOAIWD as the lead agency will through DOI establish
a PRIDE PCO. The PCO will use its own discrete accounting software using specific earmarked bank
accounts. The PCO will be staffed with a financial controller recruited under performance contract to
be supported with two assistant accountants under similar terms. Processing of PRIDE day to day
transactions will be off the Government IFMS. However, periodic returns will be provided by the
programme to the Accountant General to enable the updating of the Government accounts.
Proposed financial control organisation structure 6. The MOFEDP will represent GOM on all matters pertaining the Programme. MOAIWD is
assigned the responsibility of Lead Programme Agency, and will ensure the overall oversight for the
implementation of PRIDE. This includes the provision of general policy directions for the
implementation, coordinating, implementing and ensuring coordination with other relevant agencies.
The GOM will establish a Programme Steering Committee (PSC) to be chaired by the PS (Irrigation &
Water Development) of MOAIWD, and composed by PSs of MOFEPD, MLGRD, MLHUD and
MONREM. The PSC will have a fiduciary responsibility including approval of AWPBs and scrutiny of
any adjustments requested and material unauthorised expenditure overruns. Key audit findings from
internal and external audits will be discussed in PSC meetings. The PSC will establish an audit and
oversight committee to review and report to the PSC material matters raised by auditors/ or other
reviews.
7. A PCO will directly administer PRIDE. The PCO finance team reporting to the Director of
Finance (MOAIWD) shall be composed of (i) Financial Controller; (ii) accountant; and (iii) an accounts
assistant. The PCO finance team will be responsible for the accounting function of PRIDE, including
consolidation of PCO and regional accounts, issuance of annual financial statements, periodic
financial reporting and overseeing the arrangements for audits, in accordance to GOM’s procedures
and IFAD’s audit guidelines. Participating districts will second specific staff to manage the accounting
requirements at their level. These will be required to share information with the Financial Controller as
part of a cascaded replenishment system.
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Project Level Financial Management Arrangements
8. Project Level Financial Management Assessment (FMA): In accordance with IFAD’s
Guidelines for financial Management assessment at design, a financial management assessment was
carried-out based on IRLADP and SAPP. The view is that similar systems may be used under PRIDE.
The objective of the FMA was to determine whether these programmes have acceptable financial
management arrangements, to ensure that; (i) programme funds are used only for the intended
purposes in an efficient and economical way; (ii) accurate, reliable and timely periodic financial reports
are prepared; and (iii) the entities’ assets are safeguarded. Both IRLADP and SAPP operate under
MOAIWD same as PRIDE will. The assessment of these two ongoing programmes has helped in
developing stronger design features for PRIDE.
Strengths and Weaknesses of the IRLADP and SAPP Financial Management system
Strengths to be used in PRIDE
Weaknesses to be mitigated in PRIDE
IRLADP
Dedicated accounting system (Tompro);
Comprehensive project specific chart of accounts;
Satisfactory disbursement levels;
Unqualified audit opinions;
Traceability of funds through project specific bank accounts;
Finance staff under performance contracts translates into increased efficiencies in financial processes.
Software installed towards end of project; no accurate cumulative information. PRIDE should ensure this is done as part of start-up activities.
Weak budget control tools. Although software allows for budget control these features were not well invoked. Supervision missions and auditors under PRIDE will include these in their tests.
Using report-based disbursement which may not be acceptable under IFAD. PRIDE will use the SOE approach to replenish funds.
Suffered significant challenges in use of SOE procedure before the World Bank moved the project to report-based disbursement. IFAD/GOM will ensure training in IFAD processes as part of start- up activities.
Weak monitoring of advances; many times advances are expended and the trail is lost. PRIDE chart of accounts will include advance ledgers.
Audited financial statements not in agreement with official accounting system- Tompro. This will be included in audit TORs and missions will ensure consistence between the any financial reports and the official accounting systems.
Bank reconciliations for holding/ operational account not well done.
Balances on holding accounts often excluded from the special account reconciliation.
Lengthy chart of accounts with tiny ledgers that could have been merged in consultation with PM&E officer.
In kind contributions not captured (including waived taxes and beneficiary labour).
Financial securities received during bidding/ contract implementation not passed on to finance teams for verification with issuing authorities.
While audited financial statements disclose a cash basis of accounting the actual accounting base there is no full compliance.
SAPP
Traceability of funds through project specific bank accounts;
Satisfactory segregation of duties.
Unsatisfactory disbursement levels; one of the reasons being lack of project-specific staff.
IFMS unable to generate project reports by component, category, and financiers and up to individual activity level. Dedicated accounting software will be installed.
Delays in putting ASWAp framework in place has made SAPP operate in environments of not well-defined organisational structures.
No SAPP specific terms of reference for staff working on finance processes.
Difficulties in budgeting and budget control- significant queries raised by supervision missions.
No evidence of regular bank reconciliation for the PPF account.
No assets register for assets acquired under PPF.
Mix up of PPF funds with the main loan and grant funds making justifications complex. A comprehensive chart of accounts and reporting templates shall be developed.
9. The following risk analysis is based on the assessment of financial management arrangements
of IRLADP, RLEEP, and SAPP. The detailed FMA Questionnaire is included in the programme life file.
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Risk Assessment and Mitigation Measures Risk Rating
before Risk Mitigating Measures incorporated
into Programme Design Rating after
Inherent Risk M M
Control Risk
Organisation & Staffing
SAPP experience has shown that without dedicated staff on performance-based contracts, efficiencies in financial processes can be greatly impaired with affects overall implementation and disbursement.
Coordination between MOAIWD and districts staff pose challenges with transfers of staff and low capacity.
Experience with RLEEP and SAPP's transitional PCU has shown that stand-alone PCUs in Malawi can be highly effective.
M
PRIDE will recruit specific financial controller and accountants on performance-based contracts.
Simple familiar tools such as cashbooks and vote books will be used at district. Even with frequent transfers, any incoming finance office would be able to continue from where the outgoing left.
L
Budgeting
Deadlines for the submission of the AWPB’s may not be met due to the non- availability of clear planning schedules and lack of clarity of PRIDE at district levels as has been the case under SAPP.
Inadequate budgets controls may lead to poor monitoring of the programme’s budget leading to cost overruns as has been the case under IRLADP.
Commitment control is weak; which may result in over-committing the project.
M
Proactive follow up by the PCO of the agreed budgeting calendar
Dedicated accounting software should have a module to control the budget through use of electronic vouchers as opposed to manual.
Commitment control tools such as vote books at district level and budget control module at national level will be used. The contracts registers, the contract monitoring forms will be used to strengthen commitment control.
L
Funds flows and disbursement
IRLADP had challenges using the SOE procedures and was later put on report-based disbursed. Using SOE procedures may pose some challenge.
Counterpart contributions in kind may not be captured.
Delays on part of co-financiers (e.g. EU)
Delays in the remittance of counterpart funding.
Inadequate capacity especially at the district levels to properly manage the PRIDE accounts, delays in submission of expenditure justification could lead to liquidity challenges undermining progress.
Experience with designated accounts located within the Reserve Bank of Malawi has been poor with slow transfers from the designated account affecting RLEEP and SAPP.
H
Training in IFAD procedures
Proactive implementation support from IFAD
GOM tax contributions/ exemptions to be included in the PRIDE bill to make it easy for MRA to provide the required tax exemptions
Apart from ASAP which will be administered through IFAD on a parri passu basis, all other funding sources will be on parallel basis.
At participating districts use familiar tools such as vote books, the accounting software/ project accounting hub will be at the PCO.
Designated Account in a commercial bank rather than the Reserve Bank of Malawi.
M
Internal Controls
Inadequate budget controls leading to budget overruns as has been the case under IRLADP.
The internal controls for SAPP and RLEEP have been assessed as low risk with proper segregation of duties, record keeping, and IT support.
L
Budget module as part of the accounting software and review of this to be included in the TORs of supervision missions and auditors.
Systems audits to be included in the TORs of auditors and in the overall IFAD supervision plan.
Segregation of duties between procurement and finance officers to be emphasised in job descriptions.
L
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Risk Rating before
Risk Mitigating Measures incorporated into Programme Design
Rating after
Accounting Systems, Policies & Procedures
IFMS unable to handle the accounting demands of PRIDE.
Inadequate chart of accounts that may not reflect the programme Components, sub-components, and expenditure categories up to individual activity level.
SAPP has recently acquired TOMPRO and PRIDE is planned to use off the shelf accounting software from the start.
M
Dedicated accounting package.
Development of chart of accounts to be a joint effort between the financial controller and the P&ME Officer.
L
Reporting & monitoring
IRLADP financials disclose the accounting base as IPSAS cash basis yet the financials are not fully compliant to these accounting standards. There is a risk that PRIDE may also not be compliant to the agreed to accounting standards.
Inadequate chart of accounts to facilitate expenditure monitoring. The chart of accounts used under IRLADP was overly lengthy with minute details that clouded meaningful monitoring.
Recent SAPP and RLEEP financial statements have been satisfactory and complete.
M
Training in IPSAS cash basis
Chart of accounts to be a joint effort between the financial controller and PM&E Officer.
Introduce standard tools such as contract monitoring forms, contract registers that have not been used under IRLADP.
L
Internal audit
Limited internal audit capacity at the MOAIWD. This may affect the effectiveness of monitoring PRIDE’s systems and controls as these staff may be overloaded.
Internal Audit reports from MOAIWD for SAPP have been received.
M
This service may be outsourced on part time basis to an individual or audit firm. L
Auditing
There is a risk of delays in the submission of audit reports to IFAD as per the agreed timelines. These delays have been experienced by many GOM programmes.
In the most recent audit review the performance of the auditor general was assed as satisfactory.
Especially for infrastructure projects the willingness of the auditor general to include operation issues in the scope of the audit is useful.
M
IFAD should discuss with the office of the Auditor General an audit calendar to ensure timely submission of audit reports to the Fund.
The timing of projects submission of financial statements to the auditor general should also be monitored so the source of any bottlenecks can be identified.
L
Overall FM Risk M L
H- High, M-Moderate, L-Low Conclusion of the assessment 10. Overall, the assessment concludes that the proposed FM arrangements for PRIDE to be
medium risk. The proposed arrangement will be managed by a dedicated PCO under the oversight
and guidance of a MOAIWD-chaired PSC; and under the ultimate responsibility of the MOFEPD.
These arrangements satisfy IFAD’s minimum requirements for a robust and sound financial
management with a mitigated risk level assessed as low.
Supervision Plan (FM) 11. In light of the low residual FM risk, in the first year of implementation the supervision plan of
PRIDE will comprise at least two on-site visits that will involve inter alia visits to the implementers
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(contractors and districts). The supervision process will be complemented by desk review of progress
and financial reports, the programme’s annual financial statements, internal audit reports, and annual
audits. However, IFAD will be expected to provide a proactive support at the start which is why the
residual risk has been assessed as low.
Proposed Funds Flow and Disbursement Arrangements 12. The summary of the proposed funds flows arrangements (see chart) is as follows:
A single designated accounts handling all of the principal funding sources, i.e. IFAD grant, IFAD loan, and ASAP funds;
Joint withdrawal applications for these IFAD loan, IFAD grant and ASAP funds in proportions to be defined in schedule 2 to the financing agreement with clear instructions of where to charge indicated on each withdrawal application;
Co-financing will be on a parallel basis;
Treasury will operate on a special account in commercial bank. MOAIWD will operate the Holding account in the commercial bank. There will be one operational bank account managed by the PCO;
Each decentralised government agency that may eventually participate in the project will be required to open a PRIDE specific bank account to receive activity-tagged cash advances to be retired before subsequent releases; or in busy seasons at most 3 unretired imprest advances may be held in one by a given advance holder. Private service providers will receive advances in accordance to contract stipulations;
Project expenditures shall be eligible for financing if they are incurred during the Implementation Period. However, PRIDE expenditures may be incurred before entry into force. In this case – but on an exceptional basis and with the approval of the Executive Board – the project would benefit of retroactive financing, in accordance with Section 4.08 of the General Conditions (GC).
Chart 1: PRIDE Funds Flow Chart
IFAD Loan IFAD Grant ASAP Grant GDM Co-funders Beneficiaries Sources
Project Designated Account Dedicated account at Commercial Bank, operated by MOAIWD
Programme Operating
Account at a commercial
bank
Public and private service
providers accounts
Tax WaiversCounterpart funding (in
kind)
Co-funding specific
activities under parallel
agreements
In kind contributions
under agreements
Programme implementation (components 1 and 2) and Programme Management
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Appendix 8: Procurement
Overarching country assessment
1. In relation to procurement, IFAD’s General Conditions places emphasis on using the Borrower/
recipient/Recipient’s procurement regulations, provided they are deemed to be consistent with IFAD’s
guidelines. This is in line with the various commitments of the international donor community to work
towards increasing the use of national systems where they can be shown to be compatible with the
requirement of donors. The IFAD procurement guidelines and handbook require an assessment of
national procurement systems as part of project design. The assessment has been done in two
stages: (i) overarching country assessment; and (ii) project specific assessment.
2. The Malawi legislative and regulatory framework is robust enough. The applicable law and
regulations are contained in: (i) the Public Procurement Act; (ii) the Procurement Regulations; and
(iii) Desk Instructions for Public Procurement.
3. The Public Procurement Act introduced a new legal framework governing public procurement in
Malawi. The framework provided for the establishment of the Office of Directorate of Public
Procurement (ODPP), which, since becoming operational, has taken the lead on public procurement
reform. Among the changes to the procurement system introduced by ODPP was the complete
decentralisation of the procurement process to the level of each public entity. There was also a
concerted effort to raise awareness of the newly established framework among public sector officials,
the private sector, civil society and the general population.
4. The legal and regulatory framework is sound for efficient public procurement. The Public
Procurement Act and Regulations adequately establish the institutional framework required to support
public procurement, the stages of the procurement process, the main methods of procurement and
their conditions for use, and the conditions for review and auditing. Moreover, the Desk Instructions
serve as a manual for procuring entities providing easy and simplified explanations and guidance.
Finally, a comprehensive set of Standard Bidding Documents (SBDs) for a wide range of goods,
works, and services has been issued to assist the procuring entities in the procurement process. The
legal and regulatory framework in place thus represents a key asset in the development of sound and
efficient procurement.
5. Despite these overall encouraging trends, country procurement assessment by ODPP with
UNDP support found issues that still need to be addressed to ensure that procurement processes in
practice are fully compliant with the legislative and regulatory framework. These include: (i) few
procuring entities use the SBDs; (ii) many procuring entities do not have a copy of the Regulations
and Desk Instructions; (iii) the quality of technical specifications is often poor; (iv) evaluation criteria
are often poorly specified; (v) awareness of procedures for review is limited; and (vi) some procuring
entities have experienced political interference in the procurement process.
6. Procurement is not integrated in the budget formulation process. At present there is no
linkage between the budget planning and the procurement planning. Thus, so-called procurement
plans are made after budget allocation and approval – if made at all. ODPP is however making
procurement planning compulsory.
Procurement plans are not followed. For those procuring entities that have developed consolidated procurement plans, carrying out procurements in accordance with the plan remains a major challenge. Poor planning skills, time constraints, and to some extent external interferences and unplanned procurements constitute major obstacles.
No completion report mechanism exists. There is no feedback mechanism providing completion reports on the execution of major contracts. The procedures related to the preparation of completion reports appear to differ between procuring entities. Some entities report that: (i) completion reports are prepared; (ii) the process of preparing completion reports is often delayed; and (iii) they do not prepare completion reports for major contracts.
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Most procuring entities have inadequate procurement competence levels and record keeping in procuring entities remains poor.
The assessment by ODPP encountered a number of weaknesses related to the compliance and performance of the established control mechanisms. The following key issues were noted: (i) auditors lack procurement proficiency; (ii) weak enforcement of audit recommendations; (iii) internal audit committees are not yet established; and (iv) compliant decisions are currently not being published.
Project Specific Assessment-Based on operations of IRLADP
7. Project specific assessment: During the design mission, a procurement assessment was
carried-out on IRLADP operations in accordance with the IFAD procurement guidelines and
handbook. The overall assessment was partially satisfactory and the following gaps were identified:
Very high thresholds were being used by IRLADP under World Bank. Limited bidding (shopping) was up to the equivalent of USD 200,000 for goods and ICB was mandatory only for procurements over the equivalent of USD 2 million. Under PRIDE the GOM thresholds will be followed which currently are as follows:
Table 1: PRIDE Procurement thresholds
Threshold
Procurement Method MWK million
Goods Up to 5 Request for Quotation (RFQ) using Govt approved list
>5-80 National Competitive Bidding (NCB)
>80 International Competitive Bidding (ICB)
Services Up to 5 Least Cost Selection (LCS) - Other methods such as Fixed Budget and
Quality-based Selection (QBS) may be used depending on the assignment.
>5-15 Quality cost and based selection (QCBS)
>15-40 QCBS- Expression of Interest/ Prior review by ODPP
>40 QCBS- Expression of Interest/ Prior review by ODPP+ international advert
Works Up to 10 RFQ
10-800 NCB
>800 ICB
Bid registers were not well-documented under IRLADP. This meant that bids could easily be smuggled into IRLADP beyond the deadlines as well as easily be misplaced and or lost due to poor record keeping. Under PRIDE a system of registering bids and proper procedures for bidding closing will be introduced.
The selection and appointment of the evaluation committee members was left to the procurement specialist with no formal appointments signed off by the coordinator or his superiors. Under PRIDE IFAD will be interested in pen profiles/calibre of members sitting on evaluation committees to ensure a balanced mix of skills for specialised evaluations.
Prequalification, even where necessary, was not undertaken under IRLADP. Given the repetitive nature of small and medium schemes that PRIDE will be undertaking, prequalification will be undertaken on a two yearly interval.
Bid securities were not handled properly under IRLADP. These financial instruments were being kept as part of the original bids or scattered around the offices yet they represent money. Under PRIDE, all financial instruments (bid securities, performance securities, advance guarantees) will be passed by the procurement officer to the financial controller for authentication from issuing authorities and also for safe custody and monitoring them for execution in the event of any contractual breaches.
Contact administration was not adequate under IRLADP as finance and procurement staffs were not maintaining contract monitoring forms and contract registers. With such a civil works heavy project, contract administration cannot be overemphasised. Under PRIDE as part of start-up activities contract administration training will be given the importance it deserves and tools such as contract monitoring forms, contract registers, etc., will be introduced.
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PRIDE procurement arrangements
8. For PRIDE, it is recommended that the GOM procurement systems will be used. Thus the
procurement planning should be according to the GOM planning calendar. Due to the medium
inherent risk ranking of the GOM procurement systems obtained at various assessments; the IFAD
prior review thresholds for PRIDE would be USD 50,000 for goods and services and for works over
USD 100,000 to start with. Mitigation measures for civil works, including those for dams, as defined by
the ESMPs, are included in the construction contracts.
9. PRIDE procurement organisation structure: PRIDE will set up a specific procurement unit
managed by procurement specialist. For each contract, ad hoc evaluation committee members will be
appointed by the Programme Director in consultation with the procurement specialist and the
concerned technical specialists. The committee members will be formally appointed by the MOAIWD
PS or designate and will be required to sign a confidentiality code and professional declaration.
10. Internal Procurement Committee (IPC): The MOAIWD IPC will be the overall approval authority.
The IPC will approve; (i) all procurement plans; (ii) draft advertisements and other bidding documents;
(iii) specific terms and conditions relating to contract amounts, completion periods, stages and
conditions of part payments; and (iv) applications for contract variations above thresholds as set and
issued by the ODPP.
11. All PRIDE NCB and ICB procurements will be carried-out and managed centrally at the PCO.
Local shopping may be carried-out at the district level in case bulking opportunities may not be
feasible at the PCO. In this regard, districts will have to submit their procurement plans for inclusion in
the consolidated PRIDE procurement plan. Efforts should be made by the PRIDE procurement
specialist to ensure that the best contract packaging possible, including consideration of what lots can
be put together in a package for which it is possible to find a supplier or bulking opportunities.
12. The Procurement Plan should be submitted to the procurement unit at MOAIWD. The
Procurement Unit will refine the PRIDE Procurement Plan and submit it to ODPP for information and
later to IFAD for a no objection as part of the PRIDE AWPB. It is important to note that if the
procurement specialist does not carefully work through the procurement planning so that optimal
contract packaging or bulking opportunities are missed; this will affect disbursement as there may be
many small packages and payments that would make it impossible to optimally deploy the available
disbursement methods.
13. Bidding Documents: The evaluation criteria and the final selection of all procurements are
based on the bidding documents. Thus if the bid documents are poorly prepared, miss-procurements
and or corruption may occur. Under PRIDE, the GOM standard bid documents will be used and
adapted to suit the each specific procurement item. On job training should be carried-out for PRIDE
management by MOAIWD and or IFAD in the preparation of these documents. The TOR’s for the
external auditors should include a requirement to review and advice on the suitability of prepared bid
documents; a procurement auditor should always be part of the team. The approval of the IPC should
always be sought for each prepared bid documents as per the approval thresholds in the public
procurement Act. For those procurements above the IFAD prior review thresholds, an IFAD no
objection should also be sought for by PRIDE management.
14. Integrated contract for irrigation development. PRIDE will issue at least one integrated
contract for design, construction and management transfer to the WUA of an irrigation scheme. Such
a Design – Build – Transfer Contract is new to the sector, and quite likely new to Malawi. The
Procurement Specialist will draft a procurement strategy for the DBT contract and use this as a basis
for a market consultation. For this consultation, major civil contractors, which have a sufficient
financial capacity to pre-finance investments, are invited, along with entities experienced in design
and in promotion of farmer-management of irrigation systems. Criteria for payment will both stress the
most efficient use of funds for irrigation development (criterion: cost per hectare actually irrigated over
a 3-year period) and the transfer of day-to-day management to a capable WUA (criterion: documented
and visual evidence of WUA assuming O&M responsibilities).
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Table 2: Summary of PRIDE procurement processes for goods, works and services
Steps in Procurement Cycle Responsibility
1. Procurement Plan and Budget
2. Procurement Requisition filled with
clear specifications
3. Confirmation of availability of funds
4. Review of specifications,
Procurement Method, evaluation
criteria and potential suppliers
5. Procurement method approval
6. Preparation of bidding documents -
Instructions to bidders, terms and
Conditions etc.
7. Approval of bidding documents
8. Advertising and invitation for bids
9. Receipt and opening of bids
10. Evaluation of bids
11. Review of evaluation report and
IFAD “no objection"
12. Award of contract
13. Sign contract and communicate
award, administrative review
14. Contract monitoring, delivery and
payment
15. Contract performance evaluation
User Department/
Technical specialists
PRIDE Financial Controller
PCO Procurement specialist
Will coordinate this
MOAIWD IPC
PCO Procurement Specialist
MOAIWD IPC, IFAD no
objection
PCO Procurement
Specialist will coordinate
this process
MOAIWD IPC
User Department
Ad hoc evaluation
Committees with suitable
Skill mix
Project
Coordinator/ PS
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Appendix 9: Programme cost and financing
Main Assumptions
1. PRIDE is to be financed over a seven-year period (2016-2022). Costs have been estimated on
the basis of prices prevailing at the time of final design mission in March 2015. Information collected
during the design missions provided the key parameters for the Programme costs. Data collected
have been checked for consistency with average costs of goods and services in Malawi.
Economic growth, Inflation, Contingencies and Exchange Rates
2. Economic growth. Malawi is a low-income country with a very small-sized economy. Malawi
recorded strong average growth (real gross domestic product - GDP) of 7.1% till 2010, it slowed down
to 4.3% in 2011 and rebounded to 4.97% in 2013. We expect growth to slow from an estimated 5.3%
in 2014 to 3.6% in 2015 as tobacco production falls in response to the low prices fetched in the
previous year, uranium output drops to zero after operations at the Kayelekera mine in northern
Malawi were suspended in May 2014 –owing to depressed world uranium prices- and large floods in
southern Malawi in early 2015 affect crop development and likely harvest. The continued suspension
of aid inflows from major donors will delay investment projects and weigh on government
consumption, further tempering the pace of growth. Introduction of new technologies such as mobile
banking and the expansion of other telecommunications services will support robust growth in the
services sector in 2015 and throughout the outlook period.
3. Beyond 2015, we expect overall growth to pick up as aid inflows rise gradually, political stability
improves and investor sentiment strengthens. Agricultural growth will slow over the forecast period as
the potential for raising maize output through fertiliser usage declines and only slow progress is made
on improving rural roads and irrigation infrastructure. Uranium production is likely to restart once world
prices recover in the second half of the forecast period, and this, together with exploration for rare
earth minerals and further uranium resources, will support growth in the medium term. Investments in
power infrastructure, including generation capacity and transmission lines, will also underpin growth in
manufacturing and other economic activities, although demand will continue to outstrip supply.
Overall, forecasted growth will rise to an average of around 5.4% a year in 2016-19.
4. Inflation rates. Year-on-year inflation has remained firmly above 20% since mid-2012.
However, a stabilising currency and a sharp drop in average world oil prices will help to ease price
pressure in 2015, although a weak domestic harvest due to large floods will reduce domestic food
availability. Overall, the forecasted average inflation will ease from 23.8% in 2014 to 16.4% in 2015.
Inflation is expected to continue to moderate gradually thereafter, to an average of 9.7% in 2016-19,
as currency depreciation slows and domestic food production improves, moderating the effect of rising
international oil prices.
5. Contingencies. Price contingencies have been applied on all costs. A local inflation rate of
10% is applied for the analysis for the Programme period 2016-2022. Foreign inflation rate (2%) has
been based on the Unit Value Index (in USD) of manufactures (MUV), which is commonly used as a
deflator in the commodity-price literature. Both local and foreign inflation rates are shown in table 1.
Table 1: Inflation rates
April 2015 2016 2017 2018 2019 2020 2021
Local 19% 10% 10% 10% 10% 10% 10%
Foreign 2% 2% 2% 2% 2% 2% 2%
Source: EIU Malawi Q1 2015 country report
6. Physical contingencies have been considered in case of shocks that may emerge during
implementation. A physical contingency of 4% has been applied to items for which the required
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amounts could not be reasonably estimated, i.e. works (mainly related to the uncertainties in the
designs of irrigation schemes, of which some are at pre-feasibility level only).
7. Exchange Rate. The shift to a floating exchange-rate regime in May 2012, coupled with a weak
current-account position and low levels of foreign reserves, caused the Malawian Kwacha (MK) to
depreciate to an average of MK356 to USD 1 in 2013, from MK166 to USD 1 prior to the introduction
of a flexible exchange rate. Depreciation continued during 2014 (MK455 to USD 1). The exchange
rate was MK 440 to USD 1 at final design (March 2015) and the authorities expect it to remain
relatively stable for the rest of the year. However, the currency usually stabilises during the main
tobacco export season (April-August)and is likely to do so again in the future. Despite higher tobacco
exports, it is expected the MK will continue to depreciate in 2015, owing to the large current-account
deficit and weak investment inflows. It is also expected the MK will continue to weaken thereafter,
albeit more gradually, as the current-account deficit remains wide and foreign direct investment
inflows stay fairly weak.
8. For the purpose of this analysis and in consideration of the above, most of the unit cost costs
have been calculated in USD in order to deal with the forecasted turbulence in the foreign exchange
market. The exchange rate has been set to MK 440 to USD 1 (at data collection and negotiation).
9. Taxes and Duties. Taxes and duties have been estimated using information provided by the
Malawi Revenue Authority and the Ministry of Finance. Import duties and value added tax (VAT) are
applied where appropriate. VAT of 16.5% is levied on all imported and locally procured goods and
services. Taxes on imported vehicles also include import duties and excises, ranging between 41.5%
and 96.5%. The vehicles imported under PRIDE (four wheel drive exceeding 3,000 cc) would fall in
the highest tax category, being 96.5% (import duty 25%, import excise 55%, VAT 16.5%).
International technical assistance does not carry any taxes while training activities are taxed at 5%.
For directly recruited local staff the Programme will cover social insurance charges of 15%. All items
to be imported for the Programme attract custom duties of different proportions, between 0 and 30%.
A flat rate of 13.5% is imposed on all equipment and materials.
10. The Government will waive duties, excises and taxes or will finance the cost of all taxes on
goods procured under the Programme. Taxes and duties applied in Programme costing – displayed
by expenditure category – are summarized in table 2.
Table 2: Taxes, duties and foreign exchange by expenditure category
Programme Costs
11. Total Programme costs including price and physical contingencies, duties and taxes are
estimated at USD 84 million over the seven-year Programme implementation period as shown in
table 3.
12. Of this amount about USD 23 million (27% of total project costs) represents the foreign
exchange component, USD 13 million (15.9%) are duties and taxes. Total base costs amount USD
77.1 million, while physical and price contingencies are estimated to add another USD 6.8 million
(8.8% of the base costs) to this amount. Investment costs account for 86% of the base costs (and
Expenditure category
%
Taxes
%
Duty/Taxes
% foreign
exchange
Civil works 16.5 0 50
Vehicles (3000 cc and above) 96.5 17 60
Other Equipment and Materials 30 55 20
Studies and consultancies 16.5 0 50
Training 5 0 20
Co-funding 0 0 0
Operations and maintenance 16.5 0 10
Salaries and allowances 15 0 0
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recurrent costs for remaining 14%). Programme investments are organized into three components:
(i) Irrigation development and catchment management; (ii) Agriculture and market linkages; and
(iii) Programme management and coordination. The first component consists of three sub-
components, being: (i) land and water governance; (ii) irrigation system development; and (iii) soil and
water conservation). The second component also comprises three sub-components, being
(i) improved agricultural practices; (ii) market linkages; and (iii) mainstreaming nutrition. A third cost
component is made of two sub-components, being: (i) programme management; and (ii) Knowledge
Management and Planning, Monitoring & Evaluation. Funds allocated to Programme management
and coordination amount to about USD 8.1 million or 9.7% of the total Programme costs. A summary
breakdown of the Programme costs by component and sub-component is shown in table 3.
Programme summary and detailed costs are provided in annexes 1 and 2.
Table 3: Programme Costs Summary by Year and by Component (million USD)
Totals Including Contingencies
2016 2017 2018 2019 2020 2021 2022 Total
A. Irrigation development and catchment management
1. Land and w ater governance 767 316 778 317 689 339 105 3.311
2. Irrigation system development 2.241 9.929 12.463 10.766 6.268 5.471 1.021 48.159
3. Soil and w ater conservation 184 395 345 411 359 427 128 2.248
Subtotal 3.192 10.639 13.586 11.493 7.316 6.237 1.254 53.718
B. Agriculture for irrigation and rain-fed systems
1. Improved agricultural practices 927 1.327 1.292 1.242 1.179 1.089 341 7.397
2. Market linkages 1.931 4.380 4.510 1.083 534 451 268 13.159
3. Mainstreaming nutrition 14 120 112 113 1 1 - 362
Subtotal 2.872 5.827 5.914 2.438 1.715 1.541 609 20.918
C. Programme management and coordination
1. Know ledge Management, Planning and M&E 193 120 120 223 125 129 278 1.187
2. Programme coordination 1.464 1.087 1.109 1.122 1.551 1.132 663 8.127
Subtotal 1.657 1.206 1.228 1.345 1.676 1.261 941 9.314
Total PROJECT COSTS 7.721 17.673 20.729 15.277 10.706 9.040 2.805 83.950
Programme Costs by Expenditure Categories
13. The expenditure accounts are based on the standardisation that IFAD is adopting after phasing
its Loan and Grants System. The largest expenditure category among investment costs is
represented by civil works (53% of total base costs). A summary breakdown of the Programme costs
by expenditure category is shown in table 4.
Table 4: Programme Costs by Expenditure Categories
(MK Million) (USD '000)
% % Total % % Total
Foreign Base Foreign Base
Local Foreign Total Exchange Costs Local Foreign Total Exchange Costs
I. Investment Costs
A. Works 10.798 7.276 18.074 40 53 24.542 16.536 41.078 40 53
B. Vehicles 135 203 338 60 1 307 461 768 60 1
C. Equipment and Materials 727 167 894 19 3 1.653 380 2.032 19 3
D. Studies and consultancies 2.550 974 3.524 28 10 5.796 2.213 8.009 28 10
E. Trainings 3.351 625 3.976 16 12 7.616 1.420 9.037 16 12
F. Co-funding 2.640 - 2.640 - 8 6.000 - 6.000 - 8
Total Investment Costs 20.202 9.244 29.446 31 87 45.913 21.010 66.923 31 87
II. Recurrent Costs
A. Operations and maintenance 466 - 466 - 1 1.058 - 1.058 - 1
B. Salaries and allow ances 4.012 - 4.012 - 12 9.119 - 9.119 - 12
Total Recurrent Costs 4.478 - 4.478 - 13 10.177 - 10.177 - 13
Total BASELINE COSTS 24.680 9.244 33.924 27 100 56.091 21.010 77.100 27 100
Physical Contingencies 782 214 995 21 3 1.777 485 2.262 21 3
Price Contingencies 8.071 3.317 11.388 29 34 3.246 1.341 4.587 29 6
Total PROJECT COSTS 33.533 12.775 46.307 28 137 61.113 22.836 83.950 27 109
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104
Programme Financing
14. PRIDE is to be financed by the GOM, IFAD (loan and grant), ASAP grant through IFAD, DFID,
Private sector and beneficiaries. IFAD will finance 31.5% (USD 26.5 million) of the programme costs
(USD 84 million) as a loan to the GOM, on highly concessionary terms and 31.6% (USD 26.5 million)
will be an IFAD grant. ASAP will finance 8.4% (USD 7 million). The government will finance the taxes
and duties (USD 13.2 million, representing 15.7% of total costs). The estimate of taxes and duties
was based on the rates in effect prevailing at the time of the design. In conformity with the principle
that no taxes or duties would be financed out of the proceeds of the IFAD Loan/Grant, any future
changes in the rates and/or structures of taxes and duties would have to apply to the Programme.
Beneficiaries will contribute USD 7.2 million (mainly in kind) representing about 8.7% of Programme
costs. The proposed financing plan is summarised in Table 5.
Table 5: Programme Financing Plan (000 USD)
GoM IFAD LOAN IFAD GRANT ASAP DFID Private sector Beneficiaries Total
Amount % Amount % Amount % Amount % Amount % Amount % Amount % Amount %
A. Irrigation development and catchment management
1. Land and w ater governance 504 15,2 1.035 31,3 1.368 41,3 232 7,0 - - - - 172 5,2 3.311 3,9
2. Irrigation system development 9.597 19,9 15.241 31,6 16.368 34,0 - - - - - - 6.953 14,4 48.159 57,4
3. Soil and w ater conservation 426 18,9 19 0,8 - - 1.646 73,2 - - - - 157 7,0 2.248 2,7
Subtotal 10.527 19,6 16.294 30,3 17.736 33,0 1.878 3,5 - - - - 7.283 13,6 53.718 64,0
B. Agriculture for irrigation and rain-fed systems
1. Improved agricultural practices 806 10,9 1.280 17,3 600 8,1 4.711 63,7 - - - - - - 7.397 8,8
2. Market linkages 1.081 8,2 1.699 12,9 6.881 52,3 - - 498 3,8 3.000 22,8 - - 13.159 15,7
3. Mainstreaming nutrition 53 14,8 - - 35 9,7 273 75,5 - - - - - - 362 0,4
Subtotal 1.940 9,3 2.979 14,2 7.516 35,9 4.984 23,8 498 2,4 3.000 14,3 - - 20.918 24,9
C. Programme management and coordination
1. Know ledge Management, Planning and M&E 152 12,8 - - 1.036 87,2 - - - - - - - - 1.187 1,4
2. Programme coordination 464 5,7 7.210 88,7 252 3,1 201 2,5 - - - - - - 8.127 9,7
Subtotal 616 6,6 7.210 77,4 1.288 13,8 201 2,2 - - - - - - 9.314 11,1
Total PROJECT COSTS 13.083 15,6 26.483 31,5 26.540 31,6 7.063 8,4 498 0,6 3.000 3,6 7.283 8,7 83.950 100,0
15. Start-up funds. To support a swift start of programme a start-up financing facility is foreseen to
a total of USD 560,000, to cover specified expenditures during the period between entry into force of
the Project Agreement and the moment conditions for first withdrawal are satisfied. In table 6, the
eligible expenditure items and advance estimates are detailed.
Table 6: Start-up financing facility
Item USD
Office set-up 167,000
Salaries professional team 211,000
support team 81,700
Preparation
WUA training 14,800
Scheme appraisal 18,500
Land & water consultations 27,000 Purchase and installation of accounting software 20,000
Setting up M&E 20,000
Total 560,000
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Design completion report
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105
ANNEXES
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106
ANNEX 1: SUMMARY COST TABLES
Table 1: Components Programme Cost Summary
Republic of Malaw i
Programme for Rural Irrigation Development
Components Project Cost Summary
(MK Million) (USD '000)
% % Total % % Total
Foreign Base Foreign Base
Local Foreign Total Exchange Costs Local Foreign Total Exchange Costs
A. Irrigation development and catchment management
1. Land and w ater governance 1.093 169 1.262 13 4 2.484 384 2.868 13 4
2. Irrigation system development 11.839 7.704 19.543 39 58 26.907 17.508 44.416 39 58
3. Soil and w ater conservation 535 305 840 36 2 1.216 693 1.909 36 2
Subtotal 13.467 8.177 21.645 38 64 30.607 18.585 49.193 38 64
B. Agriculture for irrigation and rain-fed systems
1. Improved agricultural practices 2.645 285 2.930 10 9 6.011 648 6.659 10 9
2. Market linkages 5.200 420 5.620 7 17 11.819 954 12.773 7 17
3. Mainstreaming nutrition 129 22 152 15 - 294 51 345 15 -
Subtotal 7.975 728 8.702 8 26 18.124 1.653 19.777 8 26
C. Programme management and coordination
1. Know ledge Management, Planning and M&E 403 81 483 17 1 916 183 1.099 17 1
2. Programme coordination 2.835 259 3.094 8 9 6.444 588 7.032 8 9
Subtotal 3.238 339 3.577 9 11 7.359 771 8.130 9 11
Total BASELINE COSTS 24.680 9.244 33.924 27 100 56.091 21.010 77.100 27 100
Physical Contingencies 782 214 995 21 3 1.777 485 2.262 21 3
Price Contingencies 8.071 3.317 11.388 29 34 3.246 1.341 4.587 29 6
Total PROJECT COSTS 33.533 12.775 46.307 28 137 61.113 22.836 83.950 27 109
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Table 2: Expenditure Accounts Programme Cost Summary
Republic of Malaw i
Programme for Rural Irrigation Development
Expenditure Accounts Project Cost Summary
(MK Million) (USD '000)
% % Total % % Total
Foreign Base Foreign Base
Local Foreign Total Exchange Costs Local Foreign Total Exchange Costs
I. Investment Costs
A. Works 10.798 7.276 18.074 40 53 24.542 16.536 41.078 40 53
B. Vehicles 135 203 338 60 1 307 461 768 60 1
C. Equipment and Materials 727 167 894 19 3 1.653 380 2.032 19 3
D. Studies and consultancies 2.550 974 3.524 28 10 5.796 2.213 8.009 28 10
E. Trainings 3.351 625 3.976 16 12 7.616 1.420 9.037 16 12
F. Co-funding 2.640 - 2.640 - 8 6.000 - 6.000 - 8
Total Investment Costs 20.202 9.244 29.446 31 87 45.913 21.010 66.923 31 87
II. Recurrent Costs
A. Operations and maintenance 466 - 466 - 1 1.058 - 1.058 - 1
B. Salaries and allow ances 4.012 - 4.012 - 12 9.119 - 9.119 - 12
Total Recurrent Costs 4.478 - 4.478 - 13 10.177 - 10.177 - 13
Total BASELINE COSTS 24.680 9.244 33.924 27 100 56.091 21.010 77.100 27 100
Physical Contingencies 782 214 995 21 3 1.777 485 2.262 21 3
Price Contingencies 8.071 3.317 11.388 29 34 3.246 1.341 4.587 29 6
Total PROJECT COSTS 33.533 12.775 46.307 28 137 61.113 22.836 83.950 27 109
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Table 3: Expenditure Accounts by Components
Republic of Malaw i
Programme for Rural Irrigation Development
Expenditure Accounts by Components - Base Costs
(USD '000)
Programme management and
Irrigation development and catchment Agriculture for irrigation and coordination
management rain-fed systems Knowledge
Land and Irrigation Improved Management, Physical
water system Soil and water agricultural Market Mainstreaming Planning Programme Contingencies
governance development conservation practices linkages nutrition and M&E coordination Total % Amount
I. Investment Costs
A. Works - 40.028 1.050 - - - - - 41.078 2,2 906
B. Vehicles - - - - - - - 768 768 - -
C. Equipment and Materials 118 - 570 938 - 310 26 70 2.032 6,4 131
D. Studies and consultancies 858 3.597 - 2.177 618 10 522 227 8.009 3,6 285
E. Trainings 1.455 195 270 1.208 5.742 20 62 85 9.037 2,1 186
F. Co-funding - - - - 6.000 - - - 6.000 - -
Total Investment Costs 2.430 43.819 1.890 4.323 12.360 340 610 1.150 66.923 2,3 1.506
II. Recurrent Costs
A. Operations and maintenance - - - 235 - - - 823 1.058 10,0 106
B. Salaries and allow ances 437 596 19 2.101 413 5 488 5.059 9.119 7,1 650
Total Recurrent Costs 437 596 19 2.336 413 5 488 5.882 10.177 7,4 756
Total BASELINE COSTS 2.868 44.416 1.909 6.659 12.773 345 1.099 7.032 77.100 2,9 2.262
Physical Contingencies 261 883 191 290 41 - 5 591 2.262 - -
Price Contingencies
Inflation
Local 879 8.443 447 2.264 1.617 76 400 2.672 16.798 - -
Foreign 24 1.125 54 44 47 2 14 31 1.341 - -
Subtotal Inflation 903 9.568 501 2.308 1.664 78 413 2.703 18.139 - -
Devaluation -720 -6.708 -354 -1.860 -1.320 -61 -330 -2.199 -13.552 - -
Subtotal Price Contingencies 182 2.860 148 448 344 17 84 504 4.587 3,2 146
Total PROJECT COSTS 3.311 48.159 2.248 7.397 13.159 362 1.187 8.127 83.950 2,9 2.408
Taxes 504 9.597 426 806 1.081 53 152 464 13.083 2,5 333
Foreign Exchange 440 18.982 817 726 1.001 53 197 620 22.836 2,3 517
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Table 4: Programme Components by Year
Republic of Malaw i
Programme for Rural Irrigation Development
Project Components by Year -- Totals Including Contingencies
(USD '000)
Totals Including Contingencies
2016 2017 2018 2019 2020 2021 2022 Total
A. Irrigation development and catchment management
1. Land and w ater governance 767 316 778 317 689 339 105 3.311
2. Irrigation system development 2.241 9.929 12.463 10.766 6.268 5.471 1.021 48.159
3. Soil and w ater conservation 184 395 345 411 359 427 128 2.248
Subtotal 3.192 10.639 13.586 11.493 7.316 6.237 1.254 53.718
B. Agriculture for irrigation and rain-fed systems
1. Improved agricultural practices 927 1.327 1.292 1.242 1.179 1.089 341 7.397
2. Market linkages 1.931 4.380 4.510 1.083 534 451 268 13.159
3. Mainstreaming nutrition 14 120 112 113 1 1 - 362
Subtotal 2.872 5.827 5.914 2.438 1.715 1.541 609 20.918
C. Programme management and coordination
1. Know ledge Management, Planning and M&E 193 120 120 223 125 129 278 1.187
2. Programme coordination 1.464 1.087 1.109 1.122 1.551 1.132 663 8.127
Subtotal 1.657 1.206 1.228 1.345 1.676 1.261 941 9.314
Total PROJECT COSTS 7.721 17.673 20.729 15.277 10.706 9.040 2.805 83.950
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Table 5: Components by Financiers
Republic of Malaw i
Programme for Rural Irrigation Development
Components by Financiers
(USD '000)
GoM IFAD LOAN IFAD GRANT ASAP DFID Private sector Beneficiaries Total
Amount % Amount % Amount % Amount % Amount % Amount % Amount % Amount %
A. Irrigation development and catchment management
1. Land and w ater governance 504 15,2 1.035 31,3 1.368 41,3 232 7,0 - - - - 172 5,2 3.311 3,9
2. Irrigation system development 9.597 19,9 15.241 31,6 16.368 34,0 - - - - - - 6.953 14,4 48.159 57,4
3. Soil and w ater conservation 426 18,9 19 0,8 - - 1.646 73,2 - - - - 157 7,0 2.248 2,7
Subtotal 10.527 19,6 16.294 30,3 17.736 33,0 1.878 3,5 - - - - 7.283 13,6 53.718 64,0
B. Agriculture for irrigation and rain-fed systems
1. Improved agricultural practices 806 10,9 1.280 17,3 600 8,1 4.711 63,7 - - - - - - 7.397 8,8
2. Market linkages 1.081 8,2 1.699 12,9 6.881 52,3 - - 498 3,8 3.000 22,8 - - 13.159 15,7
3. Mainstreaming nutrition 53 14,8 - - 35 9,7 273 75,5 - - - - - - 362 0,4
Subtotal 1.940 9,3 2.979 14,2 7.516 35,9 4.984 23,8 498 2,4 3.000 14,3 - - 20.918 24,9
C. Programme management and coordination
1. Know ledge Management, Planning and M&E 152 12,8 - - 1.036 87,2 - - - - - - - - 1.187 1,4
2. Programme coordination 464 5,7 7.210 88,7 252 3,1 201 2,5 - - - - - - 8.127 9,7
Subtotal 616 6,6 7.210 77,4 1.288 13,8 201 2,2 - - - - - - 9.314 11,1
Total PROJECT COSTS 13.083 15,6 26.483 31,5 26.540 31,6 7.063 8,4 498 0,6 3.000 3,6 7.283 8,7 83.950 100,0
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Table 6: Expenditure Accounts by Financiers
Republic of Malaw i
Programme for Rural Irrigation Development
Expenditure Accounts by Financiers
(USD '000)
GoM IFAD LOAN IFAD GRANT ASAP DFID Private sector Beneficiaries Total
Amount % Amount % Amount % Amount % Amount % Amount % Amount % Amount %
I. Investment Costs
A. Works 8.896 19,9 13.906 31,1 13.906 31,1 1.034 2,3 - - - - 6.953 15,6 44.696 53,2
B. Vehicles 242 30,0 565 70,0 - - - - - - - - - - 808 1,0
C. Equipment and Materials 443 19,4 195 8,5 91 4,0 1.397 61,2 - - - - 157 6,9 2.284 2,7
D. Studies and consultancies 1.506 17,2 1.613 18,4 3.338 38,1 2.302 26,3 - - - - - - 8.760 10,4
E. Trainings 1.439 14,8 1.031 10,6 5.685 58,4 1.405 14,4 - - - - 172 1,8 9.732 11,6
F. Co-funding -0 - - - 2.502 41,7 - - 498 8,3 3.000 50,0 - - 6.000 7,1
Total Investment Costs 12.527 17,3 17.311 24,0 25.523 35,3 6.138 8,5 498 0,7 3.000 4,2 7.283 10,1 72.280 86,1
II. Recurrent Costs
A. Operations and maintenance 161 12,9 1.084 87,1 - - - - - - - - - - 1.245 1,5
B. Salaries and allow ances 395 3,8 8.087 77,6 1.017 9,8 925 8,9 - - - - - - 10.425 12,4
Total Recurrent Costs 556 4,8 9.171 78,6 1.017 8,7 925 7,9 - - - - - - 11.669 13,9
Total PROJECT COSTS 13.083 15,6 26.483 31,5 26.540 31,6 7.063 8,4 498 0,6 3.000 3,6 7.283 8,7 83.950 100,0
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Table 7: Disbursement Accounts by Financiers
Republic of Malaw i
Programme for Rural Irrigation Development
Disbursement Accounts by Financiers
(USD '000)
GoM IFAD LOAN IFAD GRANT ASAP DFID Private sector Beneficiaries Total
Amount % Amount % Amount % Amount % Amount % Amount % Amount % Amount %
1. Works 8.896 19,9 13.906 31,1 13.906 31,1 1.034 2,3 - - - - 6.953 15,6 44.696 53,2
2. Vehicles 242 30,0 565 70,0 - - - - - - - - - - 808 1,0
3. Equipment and Materials 443 19,4 195 8,5 91 4,0 1.397 61,2 - - - - 157 6,9 2.284 2,7
4. Studies and consultancies 1.506 17,2 1.613 18,4 3.338 38,1 2.302 26,3 - - - - - - 8.760 10,4
5. Trainings 1.439 14,8 1.031 10,6 5.685 58,4 1.405 14,4 - - - - 172 1,8 9.732 11,6
6. Co-funding -0 - - - 2.502 41,7 - - 498 8,3 3.000 50,0 - - 6.000 7,1
7. Operations and maintenance 161 12,9 1.084 87,1 - - - - - - - - - - 1.245 1,5
8. Salaries and Allow ances 395 3,8 8.087 77,6 1.017 9,8 925 8,9 - - - - - - 10.425 12,4
Total PROJECT COSTS 13.083 15,6 26.483 31,5 26.540 31,6 7.063 8,4 498 0,6 3.000 3,6 7.283 8,7 83.950 100,0
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Table 8: Local/Foreign/Taxes by Financiers
Republic of Malaw i
Programme for Rural Irrigation Development
Local/Foreign/Taxes by Financiers
(USD '000)
GoM IFAD LOAN IFAD GRANT ASAP DFID Private sector Beneficiaries Total
Amount % Amount % Amount % Amount % Amount % Amount % Amount % Amount %
I. Foreign -0 - 8.218 36,0 9.482 41,5 1.584 6,9 - - - - 3.552 15,6 22.836 27,2
II. Local (Excl. Taxes) -0 - 18.264 38,0 17.058 35,5 5.479 11,4 498 1,0 3.000 6,2 3.731 7,8 48.031 57,2
III. Taxes 13.083 100,0 - - - - - - - - - - - - 13.083 15,6
Total Project 13.083 15,6 26.483 31,5 26.540 31,6 7.063 8,4 498 0,6 3.000 3,6 7.283 8,7 83.950 100,0
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Table 9: Programme Components by Year – Investment/Recurrent costs
Republic of Malaw i
Programme for Rural Irrigation Development
Project Components by Year -- Base Costs
(USD '000)
Base Cost
2016 2017 2018 2019 2020 2021 2022 Total
A. Irrigation development and catchment management
1. Land and w ater governance 697 282 676 272 576 279 86 2.868
2. Irrigation system development 2.177 9.451 11.628 9.849 5.621 4.811 879 44.416
3. Soil and w ater conservation 166 348 298 348 298 348 103 1.909
Subtotal 3.039 10.081 12.603 10.469 6.496 5.438 1.067 49.193
B. Agriculture for irrigation and rain-fed systems
1. Improved agricultural practices 880 1.232 1.177 1.109 1.031 937 293 6.659
2. Market linkages 1.913 4.325 4.418 1.003 481 397 236 12.773
3. Mainstreaming nutrition 14 117 107 105 1 1 - 345
Subtotal 2.807 5.674 5.701 2.217 1.514 1.335 529 19.777
C. Programme management and coordination
1. Know ledge Management, Planning and M&E 191 115 113 207 113 115 243 1.099
2. Programme coordination 1.360 963 963 957 1.329 927 534 7.032
Subtotal 1.550 1.078 1.076 1.164 1.442 1.042 777 8.130
Total BASELINE COSTS 7.397 16.833 19.381 13.850 9.451 7.815 2.374 77.100
Physical Contingencies 252 402 479 403 342 292 92 2.262
Price Contingencies
Inflation
Local 258 1.431 2.902 3.528 3.382 3.709 1.588 16.798
Foreign 17 132 271 321 269 260 71 1.341
Subtotal Inflation 275 1.563 3.172 3.849 3.651 3.969 1.659 18.139
Devaluation -203 -1.126 -2.303 -2.825 -2.738 -3.036 -1.320 -13.552
Subtotal Price Contingencies 71 437 869 1.024 913 933 339 4.587
Total PROJECT COSTS 7.721 17.673 20.729 15.277 10.706 9.040 2.805 83.950
Taxes 1.077 2.574 3.129 2.669 1.790 1.467 378 13.083
Foreign Exchange 1.668 4.511 5.603 4.786 3.156 2.522 590 22.836
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Table 10: Expenditure Accounts by Years -- Totals Including Contingencies
Republic of Malaw i
Programme for Rural Irrigation Development
Expenditure Accounts by Years -- Totals Including Contingencies
(USD '000)
Totals Including Contingencies
2016 2017 2018 2019 2020 2021 2022 Total
I. Investment Costs
A. Works 1.689 8.662 11.575 10.366 6.116 5.290 998 44.696
B. Vehicles 388 - - - 420 - - 808
C. Equipment and Materials 397 562 350 426 170 275 105 2.284
D. Studies and consultancies 1.241 2.019 2.004 1.390 994 812 299 8.760
E. Trainings 1.935 1.847 2.194 1.234 1.167 870 484 9.732
F. Co-funding 500 2.750 2.750 - - - - 6.000
Total Investment Costs 6.149 15.840 18.873 13.416 8.867 7.247 1.886 72.280
II. Recurrent Costs
A. Operations and maintenance 150 211 198 188 176 165 156 1.245
B. Salaries and allow ances 1.422 1.622 1.657 1.672 1.663 1.627 762 10.425
Total Recurrent Costs 1.572 1.833 1.855 1.860 1.839 1.792 918 11.669
Total PROJECT COSTS 7.721 17.673 20.729 15.277 10.706 9.040 2.805 83.950
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ANNEX 2: DETAILED COST TABLES (USD)
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Table 1.1 – Land and water governance Table 1.1. Land and w ater governance
Detailed Costs Quantities Unit Cost Totals Including Contingencies (USD)
Unit 2016 2017 2018 2019 2020 2021 2022 Total (USD) 2016 2017 2018 2019 2020 2021 2022 Total
I. Investment Costs
A. Preparation activities
1. Scheme implementation and safeguard training /a session 4 - 4 - 4 - - 12 10,000 44.440 - 46.235 - 48.103 - - 138.779
2. Scheme appraisal /b Unit 5 - 5 - 5 - - 15 10,000 55.550 - 57.794 - 60.129 - - 173.473
3. Training of Facilitators /c session 5 - 5 - 5 - - 15 2,000 11.110 - 11.559 - 12.026 - - 34.695
4. Consultation and (re-)design /d Person month 15 - 10 - 5 - - 30 5,000 83.325 - 57.794 - 30.065 - - 171.184
5. Land & Water Consultations and Agreements /e Person month 15 - 10 - 5 - - 30 5,000 83.325 - 57.794 - 30.065 - - 171.184
6. Scheme Implementation Consultations and Agreements /f Person month 15 - 10 - 5 - - 30 5,000 83.325 - 57.794 - 30.065 - - 171.184
Subtotal 361.075 - 288.971 - 210.452 - - 860.498
B. WUA start-up facility
1. Study tours (in-country) Exchange visits /g No 5 5 5 5 5 5 - 30 2,500 13.888 14.165 14.449 14.738 15.032 15.333 - 87.604
2. WUA Constitution and by-law s No 5 - 5 - 5 - - 15 8,000 44.440 - 46.235 - 48.103 - - 138.779
3. WUA Formation /h No 5 - 5 - 5 - - 15 2,000 11.110 - 11.559 - 12.026 - - 34.695
4. WUA leadership /i session 5 - 10 - 15 - 15 45 2,000 11.110 - 23.118 - 36.077 - 37.535 107.840
5. Scheme Operation & Maintenance /j session - 10 10 20 20 30 - 90 5,000 - 56.661 57.794 117.900 120.258 183.995 - 536.609
6. Financial literacy session 5 - 10 - 15 - 15 45 2,000 11.110 - 23.118 - 36.077 - 37.535 107.840
7. WUA establishment fund /k set 5 - 5 - 5 - - 15 5,000 27.775 - 28.897 - 30.065 - - 86.737
Subtotal 119.433 70.826 205.169 132.638 297.639 199.328 75.070 1.100.103
C. WUA inspection and on-demand training
1. Inspection /l No 10 15 15 10 10 15 - 75 2,500 27.775 42.496 43.346 29.475 30.065 45.999 - 219.155
2. Needs-based and On-demand training /m Session 10 10 10 - - - - 30 5,000 55.550 56.661 57.794 - - - - 170.005
3. TA support on WUA issues /n Person month 2 - 2 - 2 - - 6 15,000 33.330 - 34.677 - 36.077 - - 104.084
Subtotal 116.655 99.157 135.816 29.475 66.142 45.999 - 493.244
D. Studies
1. Tracer studies Person month - 1 1 1,5 1,5 1,5 - 6,5 5,000 - 5.666 5.779 8.843 9.019 9.200 - 38.507
2. Thematic review Person month - 1 1 1,5 1,5 1,5 - 6,5 5,000 - 5.666 5.779 8.843 9.019 9.200 - 38.507
Subtotal - 11.332 11.559 17.685 18.039 18.400 - 77.014
E. Land use planning support
1. GIS service provider Person month 7 7 7 7 7 4 4 43 5,000 35.350 36.057 36.778 37.514 38.264 22.302 22.748 229.014
2. Workstation /o Unit 2 - - - - - - 2 5,000 10.100 - - - - - - 10.100
3. A3 printer scanner Inkjet Unit 1 - - - - - - 1 5,500 5.555 - - - - - - 5.555
4. ARCGIS Licences Unit 1 - - - - - - 1 1,900 1.919 - - - - - - 1.919
5. Plotter Unit 1 - - - - - - 1 6,800 6.868 - - - - - - 6.868
6. UPS Unit 3 - - - - - - 3 80 242 - - - - - - 242
7. Hand held GPS Unit 2 - - - - - - 2 500 1.010 - - - - - - 1.010
8. Satellite imagery, aerial photos & maps Set 1 - - - - - - 1 12,500 12.625 - - - - - - 12.625
9. Office material / stationary Set 0,5 0,5 - - - - - 1 5,000 2.525 2.576 - - - - - 5.101
Subtotal 76.194 38.633 36.778 37.514 38.264 22.302 22.748 272.434
Total Investment Costs 673.357 219.948 678.294 217.312 630.536 286.029 97.818 2.803.293
II. Recurrent Costs
A. District Land Officer /p Person day 60 40 40 40 40 - - 220 80 5.333 3.626 3.699 3.773 3.848 - - 20.279
B. District Irrigation staff /q Person day 50 75 100 75 100 75 75 550 80 4.444 6.799 9.247 7.074 9.621 7.360 7.507 52.052
C. Water Users Association Specialist (PCO unit) Person year 1 1 1 1 0,5 0,5 - 5 75,122 83.461 85.130 86.832 88.569 45.170 46.074 - 435.235
Total Recurrent Costs 93.237 95.555 99.778 99.416 58.639 53.433 7.507 507.566
Total 766.594 315.503 778.072 316.727 689.175 339.462 105.325 3.310.859
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\a one trainingsession per district (Irrigation Service Division level) including 1 day refresh
\b 1 per scheme, unit cost is average and w ill depend on the size of the scheme
\c 4 facilitators per scheme; community members w ho w ill facilitate future discussion regarding a.o. scheme development
\d tw o meetings for each scheme prior to PRA and scheme (re-)design, incl DSA & travel
\e 1.5 person months per scheme
\f 0.5 person month per scheme; negotiation of beneficiary contribution, formation of WUA temporary executive committee
\g 100 WUA members per tour/visit/scheme
\h includes facilitation of (sub)committee formation sessions, technical trainings (management, f inance, land, w ater management)
\i training every tw o years
\j per scheme; 2 trainings per year
\k On an need basis, contribution to (ie off ice equipment, computer,solar panel,softw are, machinery)
\l One visit p/yr/p WUA starting 1yr after establishment. Initial 3 years include inspection of 10 IRLADP schemes
\m training contents to be identif ied in inspection visits
\n International TA to support PCO WUA specialist on the job; includes DSA, travel
\o including external harddisc
\p includes DSA & travel
\q includes DSA & travel
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Table 1.2 – Irrigation system development Republic of Malaw i
Programme for Rural Irrigation Development
Table 1.2. Irrigation system development
Detailed Costs Quantities Unit Cost Totals Including Contingencies (USD)
Unit 2016 2017 2018 2019 2020 2021 2022 Total (USD) 2016 2017 2018 2019 2020 2021 2022 Total
I. Investment Costs
A. Development of targeted irrigation schemes
1. Works
a. Lot 1 /a Ha 200 1.033 964 - - - - 2.197 7,792 1.605.464 8.458.064 8.050.964 - - - - 18.114.492
b. Lot 2 /b Ha - - 397 1.192 397 - - 1.986 7,792 - - 3.315.594 10.154.236 3.449.544 - - 16.919.374
c. Lot 3 /c Ha - - - - 282 572 100 954 7,792 - - - - 2.450.306 5.069.526 904.006 8.423.838
Subtotal 1.605.464 8.458.064 11.366.558 10.154.236 5.899.850 5.069.526 904.006 43.457.704
2. Supervising Engineer
a. Lot 1 Ha 200 1.033 964 - - - - 2.197 342 70.466 371.234 353.366 - - - - 795.066
b. Lot 2 Ha - - 397 1.192 397 - - 1.986 342 - - 145.525 445.681 151.405 - - 742.611
c. Lot 3 Ha - - - - 282 572 100 954 342 - - - - 107.547 222.507 39.678 369.732
Subtotal 70.466 371.234 498.892 445.681 258.951 222.507 39.678 1.907.410
3. Studies
a. Feasibility studies /d Study 5 8 7 - - - - 20 25,000 128.775 210.161 187.569 - - - - 526.504
b. Detailed design studies Study 5 10 3 - - - - 18 30,000 154.530 315.241 96.464 - - - - 566.235
c. Safeguard-related studies Study 5 10 5 - - - - 20 40,000 206.040 420.322 214.364 - - - - 840.726
Subtotal 489.345 945.724 498.396 - - - - 1.933.465
Subtotal 2.165.274 9.775.022 12.363.845 10.599.917 6.158.801 5.292.034 943.684 47.298.579
B. Studies and Training
1. Technical exchange session for district staff /e Session - 1 - 1 - 1 - 3 55,000 - 56.661 - 58.950 - 61.332 - 176.943
2. Exchange visits (farmer-to-farmer) for WUAs and their technical subcommittees Session - 5 5 5 5 5 5 30 1,000 - 5.151 5.254 5.359 5.466 5.576 5.687 32.493
Subtotal - 61.812 5.254 64.309 5.466 66.907 5.687 209.436
Total Investment Costs 2.165.274 9.836.834 12.369.100 10.664.227 6.164.267 5.358.941 949.371 47.508.015
II. Recurrent Costs
A. District Irrigation staff /f Person day - 100 100 100 100 100 100 600 80 - 9.066 9.247 9.432 9.621 9.813 10.009 57.188
B. Irrigation system development and inspection
1. Inspection /g Visits - 5 5 10 10 15 15 60 1,000 - 5.666 5.779 11.790 12.026 18.400 18.767 72.428
2. Irrigation engineering (PCO unit) Person year 1 1 1 1 1 1 0,5 6,5 75,122 75.873 77.391 78.938 80.517 82.128 83.770 42.723 521.340
Total Recurrent Costs 75.873 92.123 93.965 101.739 103.774 111.983 71.500 650.957
Total 2.241.148 9.928.957 12.463.064 10.765.966 6.268.041 5.470.924 1.020.871 48.158.971
_________________________________
\a Unit cost for construction w orks only
\b Unit cost for construction w orks only
\c Unit cost for construction w orks only
\d including (7) studies to maintain pipeline for future projects
\e including f ield visits for involved district level staff + staff from national level
\f includes DSA & travel
\g Once a year for each scheme, tw o days, 1 PCO staff and 1 District /ISD staff, includes fuel and DSA
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Table 1.3 – Soil and water conservation Republic of Malaw i
Programme for Rural Irrigation Development
Table 1.3. Soil and w ater conservation
Detailed Costs Quantities Unit Cost Totals Including Contingencies (USD)
Unit 2016 2017 2018 2019 2020 2021 2022 Total (USD) 2016 2017 2018 2019 2020 2021 2022 Total
I. Investment Costs
A. Training & Planning
1. Planning meetings /a Session 5 5 10 5 10 5 5 45 2,000 11.110 11.332 23.118 11.790 24.052 12.266 12.512 106.180
2. Training in community natural resources management /b Session 15 - 15 - 15 - - 45 2,000 33.330 - 34.677 - 36.077 - - 104.084
3. Support to Natural Resource Management agreement /c Session 15 - 15 - 15 - - 45 2,000 33.330 - 34.677 - 36.077 - - 104.084
Subtotal 77.770 11.332 92.471 11.790 96.207 12.266 12.512 314.348
B. Investments in Soil and Water Conservation measures
1. Additional f lood protection measures /d km - 3 3 3 3 3 - 15 10,000 - 33.997 34.677 35.370 36.077 36.799 - 176.920
2. Restauration of soil cover targeting vulnerable grounds ha 70 140 140 140 140 140 70 840 250 19.443 39.663 40.456 41.265 42.090 42.932 21.895 247.744
3. Tailor-made physical investments for erosion control /e Ha 15 30 30 30 30 30 15 180 5,000 83.325 169.983 173.383 176.850 180.387 183.995 93.837 1.061.761
4. Vetiver grass nurseries /f Unit - 15 - 15 - 15 - 45 500 - 8.499 - 8.843 - 9.200 - 26.541
5. Community nurseries /g Unit - 15 - 15 - 15 - 45 4,000 - 67.993 - 70.740 - 73.598 - 212.331
6. Community w oodlots /h Unit - 15 - 15 - 15 - 45 3,500 - 59.494 - 61.898 - 64.398 - 185.790
Subtotal 102.768 379.629 248.515 394.966 258.555 410.922 115.733 1.911.087
Total Investment Costs 180.538 390.961 340.986 406.756 354.762 423.189 128.245 2.225.435
II. Recurrent Costs
A. District Irrigation staff /i Person day 40 40 40 40 40 40 - 240 80 3.555 3.626 3.699 3.773 3.848 3.925 - 22.427
Total Recurrent Costs 3.555 3.626 3.699 3.773 3.848 3.925 - 22.427
Total 184.093 394.587 344.685 410.529 358.610 427.114 128.245 2.247.862
_________________________________
\a One initial planning meeting per scheme (cluster area & buffer zone incl) and tw o yearly follow -up meetings
\b Av. 3 villages in each scheme cluster, training of existing NRM committees
\c Establishment of agreements betw een communities, chiefs and extension off icers
\d Provision for additional f lood protection measures.
\e Prevention of erosion specif ic to the site, e.g. vegetated contour bonds, gabions. 8 ha average per village on needs basis
\f One per village
\g One per village
\h One per village
\i includes DSA & travel
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Table 2.1 – Improved agriculture practices Table 2.1. Improved agricultural practices
Detailed Costs Quantities Unit Cost Totals Including Contingencies (USD)
Unit 2016 2017 2018 2019 2020 2021 2022 Total (USD) 2016 2017 2018 2019 2020 2021 2022 Total
I. Investment Costs
A. Improved climate information
1. Portable w eather forecasters /a Unit 40 40 20 - - - - 100 350 14.140 14.423 7.356 - - - - 35.918
2. Dissemination of information Lumpsum 1 1 1 1 1 1 1 7 2,000 2.020 2.060 2.102 2.144 2.187 2.230 2.275 15.017
3. Improvement of agro-meteorology system and netw ork /b Stations - 3 4 3 - - - 10 15,000 - 46.359 63.048 48.232 - - - 157.639
4. softw are (soil-w ater relations) Set 1 - - - - - - 1 5,000 5.050 - - - - - - 5.050
5. TA fo conservation agriculture Person month 2 2 2 2 2 2 2 14 5,000 10.100 10.302 10.508 10.718 10.933 11.151 11.374 75.086
Subtotal 31.310 73.144 83.014 61.094 13.119 13.381 13.649 288.711
B. Promotion of Good Agriculture Practices
1. Demonstration sites /c sites 60 120 120 120 120 120 120 780 150 9.999 20.398 20.806 21.222 21.646 22.079 22.521 138.672
2. Input package for lead farmer /d package 120 240 240 240 240 240 240 1.560 200 26.664 54.395 55.482 56.592 57.724 58.878 60.056 369.791
3. Inocculated seed to lead farmers Unit 156 312 234 78 - - - 780 120 20.798 42.428 32.457 11.035 - - - 106.718
4. Seed multiplication f ield /e Unit - 6 24 12 6 - - 48 300 - 2.040 8.322 4.244 2.165 - - 16.771
5. Tensiometers Unit 30 - - - - - - 30 150 5.000 - - - - - - 5.000
6. Post harvest equipment /f Unit - 156 312 234 78 - - 780 150 - 26.517 54.095 41.383 14.070 - - 136.066
7. Farm-level storage units (demonstration) Unit - 5 15 15 10 - - 45 120 - 680 2.081 2.122 1.443 - - 6.326
8. Tractor and ripper /g Unit 1 1 - - - - - 2 50,000 55.550 56.661 - - - - - 112.211
9. GAP TA /h
a. TA Irrigation Agronomist Person month 1 - 1 - 1 - - 3 15,000 16.665 - 17.338 - 18.039 - - 52.042
b. GAP Service Provider North Person month 30 60 60 70 70 70 - 360 2,000 66.660 135.986 138.706 165.060 168.361 171.729 - 846.503
c. GAP Service Provider South Person month 30 60 60 70 70 70 - 360 2,000 66.660 135.986 138.706 165.060 168.361 171.729 - 846.503
Subtotal 149.985 271.973 294.751 330.121 354.762 343.457 - 1.745.048
Subtotal 267.995 475.091 467.994 466.720 451.810 424.415 82.577 2.636.603
C. GAP Studies
1. Adaptive research (all GAPs) trial 5 15 15 15 15 15 - 80 5,000 25.250 77.265 78.810 80.387 81.994 83.634 - 427.340
2. Inventory climate and hydrology information Study 2 - - - - - - 2 15,000 30.300 - - - - - - 30.300
3. Selection potential agricultural practices /i Study 1 - 1 - 1 - - 3 10,000 10.100 - 10.508 - 10.933 - - 31.541
4. Definition Good Agricultural Practices /j Study 1 1 1 1 1 1 - 6 2,000 2.020 2.060 2.102 2.144 2.187 2.230 - 12.742
Subtotal 67.670 79.325 91.420 82.530 95.113 85.864 - 501.923
D. Training and extension activities
1. Farmer to Farmer Extension Network
a. Training of extension staff /k Participant 52 52 52 52 52 52 52 364 100 5.252 5.357 5.464 5.573 5.685 5.799 5.915 39.045
b. Training of agro-dealers Participant 75 75 75 75 - - - 300 20 1.515 1.545 1.576 1.608 - - - 6.244
c. Training (off-site) for lead farmers / FFS representatives Participant 780 780 780 780 780 780 780 5.460 20 15.756 16.071 16.393 16.720 17.055 17.396 17.744 117.135
d. Equipment for Extension staff /l Set 32 32 32 32 32 32 32 224 450 14.544 14.835 15.132 15.434 15.743 16.058 16.379 108.124
e. ICT for agricultural extension /m Lumpsum 1 1 - - - - - 2 50,000 50.500 51.510 - - - - - 102.010
f. Motorcycles Unit 12 - - - - - - 12 3,000 36.360 - - - - - - 36.360
g. Farmer to Farmer f ield tours Participant 1.500 3.600 3.600 3.600 3.600 3.600 1.500 21.000 40 60.600 148.349 151.316 154.342 157.429 160.578 68.245 900.859
Subtotal 184.527 237.667 189.880 193.678 195.912 199.830 108.283 1.309.776
2. Extension Materials
a. Replication adaptive trial designs /n unit 500 - 500 - 500 - - 1.500 10 5.050 - 5.254 - 5.466 - - 15.770
b. Replication Good Agricultural Practices factsheets unit 100 100 100 100 100 100 - 600 25 2.525 2.576 2.627 2.680 2.733 2.788 - 15.928
c. Multiplication farmer training materials unit 500 900 900 500 - - - 2.800 25 12.625 23.180 23.643 13.398 - - - 72.845
Subtotal 20.200 25.755 31.524 16.077 8.199 2.788 - 104.544
Subtotal 204.727 263.422 221.404 209.755 204.111 202.618 108.283 1.414.320
Total Investment Costs 571.702 890.983 863.832 820.099 764.153 726.279 204.509 4.841.558
II. Recurrent Costs
A. Agriculture and extension specialist (PCO unit) Person year 1 1 1 1 1 0,5 - 5,5 75,122 83.461 85.130 86.832 88.569 90.340 46.074 - 480.406
B. Farmer to Farmer Extension Network
1. Agriculture extension staff /o Person day 2.500 3.400 3.400 3.400 3.400 3.400 1.500 21.000 80 202.000 280.214 285.819 291.535 297.366 303.313 136.491 1.796.738
C. Extension Coordination
1. Support for regional extension coordination /p Workshop - 16 16 16 16 16 - 80 300 - 5.439 5.548 5.659 5.772 5.888 - 28.307
2. Support for Scheme review /q Workshop - 16 16 16 16 16 - 80 300 - 5.439 5.548 5.659 5.772 5.888 - 28.307
3. Motorcycles (O&M) /r lumpsum 3 6 2 2 - - - 13 550 1.833 3.740 1.271 1.297 - - - 8.141
4. Tractor & Ripper (O&M) /s Ha 1.000 800 600 400 200 - - 3.000 60 66.660 54.395 41.612 28.296 14.431 - - 205.393
Subtotal 68.493 69.013 53.980 40.911 25.976 11.776 - 270.149
D. Linking farmers to value cahin actors
1. District Off icer allow ances Person day 16 16 16 16 16 16 - 96 80 1.293 1.319 1.345 1.372 1.399 1.427 - 8.155
Total Recurrent Costs 355.246 435.676 427.976 422.387 415.081 362.590 136.491 2.555.447
Total 926.949 1.326.659 1.291.808 1.242.486 1.179.235 1.088.868 341.000 7.397.005
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_________________________________
\a Ten per district to include the EPAs
\b Improvement of w eather information collection and dissemination through upgrade of stations and netw ork. The upgrade of a total of 10 stations in targeted districts. is assumed
\c Tw o sites per district w here small and medium sized schemes are located
\d per lead farmer at least: fertilizer (min. 2 bags), draught tolerant seed (2 bag), small tools
\e This activity w ill take into account the needs of local communities to adapt to climatic changes. Seed varieties w ill be selected accordingly (e.g. early maturing).
\f one per f ield school
\g for demonstration in North and South project district
\h for demonstration in North and South project district
\i including definition of adaptive trials
\j including factsheets
\k including allow ance and travel
\l Including: protective clothing, communication, stationary
\m To be defined in conjunction w ith extension services and telecom operators, inlcudes usage instruction and training
\n Leaflets
\o based on 0.5 contactday/ 6 w eeks per FFS (780)
\p Four meetings (30 particpants) per year at district HQ; assumes a total of 4 districts
\q Four meetings (30 particpants) per year at district HQ; assumes a total of 4 districts
\r Unit cost is based on the assumption of 18% of purchase price of about $3,000). It is further assumed that a total of 5 vehicles w ill be operational at anyone year during project
\s cost contribution w ith gradual w ithdraw al, aiming for a transfer to a (youth) enterprise
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Table 2.2 – Market Linkages Republic of Malaw i
Programme for Rural Irrigation Development
Table 2.2. Market linkages
Detailed Costs Quantities Unit Cost Totals Including Contingencies (USD)
Unit 2016 2017 2018 2019 2020 2021 2022 Total (USD) 2016 2017 2018 2019 2020 2021 2022 Total
I. Investment Costs
A. Value Chain Analyses and Market studies
1. TA for updating value chain studies /a Person month 2 2 2 - - - - 6 5,000 10.100 10.302 10.508 - - - - 30.910
2. TA for Market Analysis /b Person month 4,5 6 4,5 - - - - 15 5,000 22.725 30.906 23.643 - - - - 77.274
Subtotal 32.825 41.208 34.151 - - - - 108.184
B. Formation and support of commodity platforms
1. Launch w orkshops /c Workshop 1 2 2 1 - - - 6 2,000 2.020 4.121 4.203 2.144 - - - 12.488
2. Quarterly Netw ork training /d meeting 12 24 24 18 12 6 - 96 1,000 12.120 24.725 25.219 19.293 13.119 6.691 - 101.167
3. Quarterly communication /e Lumpsum - 1 1 1 1 1 1 6 1,000 - 1.030 1.051 1.072 1.093 1.115 1.137 6.499
Subtotal 14.140 29.876 30.473 22.508 14.212 7.806 1.137 120.153
C. Farmer - commodity platform interactions
1. Support to farmer representation /f Session 16 16 16 16 16 16 - 96 5,000 80.800 82.416 84.064 85.746 87.461 89.210 - 509.696
2. Publicity and sharing information Lumpsum 1 1 1 1 1 1 1 7 1,000 1.010 1.030 1.051 1.072 1.093 1.115 1.137 7.509
Subtotal 81.810 83.446 85.115 86.817 88.554 90.325 1.137 517.205
D. Farmers business school and farmers organisations
1. Farmer business school phase 1 /g Session 780 780 780 - - - - 2.340 1,600 1.260.480 1.285.690 1.311.403 - - - - 3.857.573
2. Farmer business school phase 2 /h Session - - - 780 - - - 780 800 - - - 668.816 - - - 668.816
3. Farmer business school phase 3 /i Session - - - - 780 - - 780 400 - - - - 341.096 - - 341.096
4. Farmer business school phase 4 /j Session - - - - - 780 780 1.560 300 - - - - - 260.938 266.157 527.096
Subtotal 1.260.480 1.285.690 1.311.403 668.816 341.096 260.938 266.157 5.394.580
E. Value chain improvement support
1. Publicity and aw areness campaigns in focal areas Lumpsum - 1 1 1 - - - 3 2,000 - 2.060 2.102 2.144 - - - 6.306
2. Value chain start-up facility /k Lumpsum - 1 2 2 - - - 5 100,000 - 103.020 210.161 214.364 - - - 527.545
Subtotal - 105.080 212.262 216.508 - - - 533.850
F. MICF Irrigation Window /l Lumpsum 500.000 2.750.000 2.750.000 - - - - 6.000.000
Total Investment Costs 1.889.255 4.295.300 4.423.405 994.649 443.862 359.069 268.432 12.673.973
II. Recurrent Costs
A. Value Chain Specialist (PCO unit) Person year 0,5 1 1 1 1 1 - 5,5 75,122 41.730 85.130 86.832 88.569 90.340 92.147 - 484.749
Total Recurrent Costs 41.730 85.130 86.832 88.569 90.340 92.147 - 484.749
Total 1.930.985 4.380.430 4.510.238 1.083.218 534.203 451.216 268.432 13.158.722
_________________________________
\a 6 existing studies need to be updated, 1 person month per study
\b Market Analysis (national and regional) 1.5 person month per study for a total of 10 commodities
\c 3 day w orkshop involving 25 participants of 3 Product platforms
\d One training per quarter for each of the commodity netw orks
\e All commodity netw orks in one new sletter, in quarterly issue
\f One representative per farmer group, 25 persons per meeting w ith value chain actor, each representative participate every tw o years, including venue
\g 1 session per farmer group (25 farmers) per yr, 100% intensity support
\h 1 session per farmer group (25 farmers) per yr, 50% intensity support
\i 1 session per farmer group (25 farmers) per yr, 25% intensity support
\j 1 session per farmer group (25 farmers) per yr, 10% intensity support
\k For demand based investments aimed at strenghtening the farmer market linkages
\l Irrigation Window under the Malaw i Innovation Challange Fund
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Table 2.3 – Mainstreaming nutrition Republic of Malaw i
Programme for Rural Irrigation Development
Table 2.3. Mainstreaming nutrition Unit
Detailed Costs Quantities Cost Base Cost (USD)
Unit 2016 2017 2018 2019 2020 2021 2022 Total (USD) 2016 2017 2018 2019 2020 2021 2022 Total
I. Investment Costs
A. Mainstreaming nutrition
1. Nutrition study /a Person month 2 - - - - - - 2 5,000 10.000 - - - - - - 10.000
2. Field Nutrition Officer training /b Session 2 3 3 2 - - - 10 2,000 4.000 6.000 6.000 4.000 - - - 20.000
3. Extension Materials and Mass Media /c Lumpsum - 10.000 - - - - - 10.000
4. Improved cooking stoves (demonstration sites) /d Household - 5.000 5.000 5.000 - - - 15.000 20 - 100.000 100.000 100.000 - - - 300.000
Total Investment Costs 14.000 116.000 106.000 104.000 - - - 340.000
II. Recurrent Costs
A. Field Nutrition Officer (FO) allow ances Person day 3 9 11 13 13 13 - 62 80 240 720 880 1.040 1.040 1.040 - 4.960
Total Recurrent Costs 240 720 880 1.040 1.040 1.040 - 4.960
Total 14.240 116.720 106.880 105.040 1.040 1.040 - 344.960
_________________________________
\a Update existing nutrition studies, approaches
\b one session for 25 Nutrition Officers
\c It includes food group charts, demonstration materials and food preparation, and printing of training manual
\d Unit cost per stove includes, promotion, construction demonstration and maintenace follow -up
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Table 3.1 – Programme Coordination Table 3.1. Programme Coordination
Detailed Costs Quantities Unit Cost Totals Including Contingencies (USD)
Unit 2016 2017 2018 2019 2020 2021 2022 Total (USD) 2016 2017 2018 2019 2020 2021 2022 Total
I. Investment Costs
A. General coordination
1. Four Wheel Vehicles Unit 6 - - - 6 - - 12 64,000 387.840 - - - 419.810 - - 807.650
2. Computer Softw are and Printer Set 16 - - - - - - 16 2,000 32.320 - - - - - - 32.320
3. Financial & accounting softw are Set 1 - - - - - - 1 10,000 10.100 - - - - - - 10.100
4. Multifunctional printer/coopier/scanner Set 1 - - - - - - 1 5,000 5.555 - - - - - - 5.555
5. Office Furniture /a Set 10 - - - - - - 10 1,500 16.665 - - - - - - 16.665
6. Office Furniture Facilitation Offices /b Set 4 - - - - - - 4 1,500 6.666 - - - - - - 6.666
7. Projector Unit 1 - - - - - - 1 500 556 - - - - - - 556
8. Digital camera w ith GPS Coordinates Unit 3 - - - - - - 3 500 1.667 - - - - - - 1.667
9. CPO Staff capacity building /c Per annum 0,5 1 1 1 1 1 - 5,5 15,000 7.575 15.453 15.762 16.077 16.399 16.727 - 87.993
10. Start up Workshop Workshop 1 - - - - - - 1 2,000 2.020 - - - - - - 2.020
11. Audit Unit 1 1 1 1 1 1 1 7 5,000 5.050 5.151 5.254 5.359 5.466 5.576 5.687 37.543
12. Supervision Mission /d Unit 2 2 2 1 2 2 1 12 12,000 24.240 24.725 25.219 12.862 26.238 26.763 13.649 153.696
13. Mid-term review Unit - - - 1 - - - 1 24,000 - - - 25.724 - - - 25.724
14. Programme completion Mission Unit - - - - - - 1 1 24,000 - - - - - - 27.298 27.298
Total Investment Costs 500.253 45.329 46.235 60.022 467.914 49.065 46.634 1.215.453
II. Recurrent Costs
A. Salaries (PCO unit)
1. Professional team
a. Programme Director /e Person year 1 1 1 1 1 1 0,5 6,5 86,225 95.796 97.712 99.666 101.659 103.693 105.766 53.941 658.234
b. Financial controller /f Person year 1 1 1 1 1 1 0,5 6,5 75,122 83.461 85.130 86.832 88.569 90.340 92.147 46.995 573.474
c. Coordinator North /g Person year 1 1 1 1 1 1 0,5 6,5 75,122 83.461 85.130 86.832 88.569 90.340 92.147 46.995 573.474
d. Coordinator South /h Person year 1 1 1 1 1 1 0,5 6,5 75,122 83.461 85.130 86.832 88.569 90.340 92.147 46.995 573.474
e. Procurement Officer /i Person year 1 1 1 1 1 1 0,5 6,5 75,122 83.461 85.130 86.832 88.569 90.340 92.147 46.995 573.474
f. Environmental Coordinator /j Person year 1 1 1 1 1 1 0,5 6,5 75,122 83.461 85.130 86.832 88.569 90.340 92.147 46.995 573.474
g. Accountant /k Person year 1 1 1 1 1 1 0,5 6,5 75,122 83.461 85.130 86.832 88.569 90.340 92.147 46.995 573.474
h. Gender & Targeting Specialist /l Person year 1 1 1 0,5 0,5 - - 4 36,516 40.569 41.381 42.208 21.526 21.957 - - 167.641
Subtotal 637.129 649.871 662.868 654.600 667.692 658.650 335.911 4.266.720
2. Support team
a. Assistant Procurement Officer /m Person year 1 1 1 1 1 1 0,5 6,5 36,516 40.569 41.381 42.208 43.052 43.913 44.792 22.844 278.760
b. Assistant Accountant /n Person year 1 1 1 1 1 1 0,5 6,5 36,516 40.569 41.381 42.208 43.052 43.913 44.792 22.844 278.760
c. PM&E Officer Assistant /o Person year 1 1 1 1 1 1 0,5 6,5 36,516 40.569 41.381 42.208 43.052 43.913 44.792 22.844 278.760
d. Assistant Coordinator North /p Person year 1 1 1 1 1 1 0,5 6,5 36,516 40.569 41.381 42.208 43.052 43.913 44.792 22.844 278.760
e. Assistant Coordinator South /q Person year 1 1 1 1 1 1 0,5 6,5 36,516 40.569 41.381 42.208 43.052 43.913 44.792 22.844 278.760
f. Administrative assistant /r Person year 1 1 1 1 1 1 0,5 6,5 9,000 9.999 10.199 10.403 10.611 10.823 11.040 5.630 68.705
g. Office Assistant/Receptionist /s Person year 1 1 1 1 1 1 0,5 6,5 7,040 7.821 7.978 8.137 8.300 8.466 8.636 4.404 53.743
h. Driver /t Person year 4 4 4 4 4 4 - 24 5,492 24.406 24.895 25.392 25.900 26.418 26.947 - 153.959
Subtotal 245.073 249.975 254.974 260.074 265.275 270.581 124.253 1.670.205
Subtotal 882.202 899.846 917.843 914.673 932.967 929.230 460.165 5.936.925
B. Operating Costs
1. Per Diem for in-country travel /u Person day 250 500 500 500 500 500 500 3.250 70 19.443 39.663 40.456 41.265 42.090 42.932 43.791 269.640
2. PCO Office Maintenance Month 6 12 12 12 12 12 12 78 2,000 13.332 27.197 27.741 28.296 28.862 29.439 30.028 184.896
3. Facilitation Office Maintenance /v Month 6 12 12 12 12 12 12 78 2,000 13.332 27.197 27.741 28.296 28.862 29.439 30.028 184.896
4. Vehicle O&M + insurance Per Year 4,5 6 6 6 6 6 6 40,5 7,000 34.997 47.595 48.547 49.518 50.508 51.519 52.549 335.233
Subtotal 81.103 141.653 144.486 147.375 150.323 153.329 156.396 974.664
Total Recurrent Costs 963.305 1.041.498 1.062.328 1.062.049 1.083.290 1.082.560 616.560 6.911.589
Total 1.463.558 1.086.827 1.108.564 1.122.071 1.551.203 1.131.625 663.195 8.127.042
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126
\a This includes furniture for the PCO staff and the Board/Meeting Room
\b Includes furniture for North and South off ice, 2 sets per off ice
\c This includes attendance to international w orkshops/events
\d every year one implemention support and one follow -up mission
\e Salary computed as the minimum of the National Professional Project Personnel Salary Scale (Annual Gross, November 2013) for a Coordinator. It includes a gratuity of 10%.
\f Salary computed as the minimum of the National Professional Project Personnel Salary Scale (Annual Gross, November 2013) for a Senior professional. It includes a gratuity of 10%.
\g Salary computed as the minimum of the National Professional Project Personnel Salary Scale (Annual Gross, November 2013) for a Senior professional. It includes a gratuity of 10%.
\h Salary computed as the minimum of the National Professional Project Personnel Salary Scale (Annual Gross, November 2013) for a Senior professional. It includes a gratuity of 10%.
\i Salary computed as the minimum of the National Professional Project Personnel Salary Scale (Annual Gross, November 2013) for a Senior professional. It includes a gratuity of 10%.
\j Salary computed as the minimum of the National Professional Project Personnel Salary Scale (Annual Gross, November 2013) for a Senior professional. It includes a gratuity of 10%.
\k Salary computed as the minimum of the National Professional Project Personnel Salary Scale (Annual Gross, November 2013) for a Senior professional. It includes a gratuity of 10%.
\l Salary computed as the minimum of the National Professional Project Personnel Salary Scale (Annual Gross, November 2013) for a Senior professional. It includes a gratuity of 10%.
\m Salary computed as the minimum of the National Professional Project Personnel Salary Scale (Annual Gross, November 2013) for a Junior professional. It includes a gratuity of 10%.
\n Salary computed as the minimum of the National Professional Project Personnel Salary Scale (Annual Gross, November 2013) for a Junior professional. It includes a gratuity of 10%.
\o Salary computed as the minimum of the National Professional Project Personnel Salary Scale (Annual Gross, November 2013) for a Junior professional. It includes a gratuity of 10%.
\p Salary computed as the minimum of the National Professional Project Personnel Salary Scale (Annual Gross, November 2013) for a Junior professional. It includes a gratuity of 10%.
\q Salary computed as the minimum of the National Professional Project Personnel Salary Scale (Annual Gross, November 2013) for a Junior professional. It includes a gratuity of 10%.
\r Salary computed as the minimum of the National Professional Project Support Personnel Salary Scale (Annual Gross) at Level 3. It includes a gratuity of 10%.
\s Salary computed as the minimum of the National Project Support Personnel Salary Scale (Annual Gross, November 2013) at Level 2. It includes a gratuity of 10%.
\t Salary computed as the minimum of the National Project Support Personnel Salary Scale (Annual Gross, November 2013) at Level 1. It includes a gratuity of 10%.
\u DSA includes transport and lodging
\v Includes maintenance for North and South Office
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Table 3.2. Knowledge Management and Planning, Monitoring and Evaluation Republic of Malaw i
Programme for Rural Irrigation Development
Table 3.2. Know ledge Management and Planning, Monitoring & Evaluation
Detailed Costs Quantities Unit Cost Base Cost (USD)
Unit 2016 2017 2018 2019 2020 2021 2022 Total (USD) 2016 2017 2018 2019 2020 2021 2022 Total
I. Investment Costs
A. M&E System
1. Establishment of M&E and Know ledge Management systems and strategies contract 1 - - - - - - 1 20,000 20.000 - - - - - - 20.000
2. Baseline incl MPAT /a Study 1 - - - - - - 1 110,000 110.000 - - - - - - 110.000
3. Mid-term survey incl MPAT /b Study - - - 1 - - - 1 80,000 - - - 80.000 - - - 80.000
4. Final impact surveys incl. MPAT /c Study - - - - - - 1 1 110,000 - - - - - - 110.000 110.000
Subtotal 130.000 - - 80.000 - - 110.000 320.000
B. Identification of lessons learned
1. Thematic studies contract - 2 2 2 2 2 2 12 10,000 - 20.000 20.000 20.000 20.000 20.000 20.000 120.000
2. Thematic w orkshops Workshop 4 4 4 4 4 4 4 28 2,000 8.000 8.000 8.000 8.000 8.000 8.000 8.000 56.000
3. Drafting and revision of fact sheets Unit 2 4 4 4 4 4 4 26 1,000 2.000 4.000 4.000 4.000 4.000 4.000 4.000 26.000
Subtotal 10.000 32.000 32.000 32.000 32.000 32.000 32.000 202.000
C. Dissemination of lessons learned
1. National w orkshop on key themes (climate-smart agriculture, value chains, land tenure, irrigation) Workshop - 1 - 1 - 1 - 3 2,000 - 2.000 - 2.000 - 2.000 - 6.000
2. Publication of fact sheets-lessons learned Per annum 2 4 4 4 4 4 4 26 1,000 2.000 4.000 4.000 4.000 4.000 4.000 4.000 26.000
3. Website design Contract 1 - - 1 - - - 2 10,000 10.000 - - 10.000 - - - 20.000
4. Website maintenance Per annum - 1 1 1 1 1 1 6 1,000 - 1.000 1.000 1.000 1.000 1.000 1.000 6.000
Subtotal 12.000 7.000 5.000 17.000 5.000 7.000 5.000 58.000
D. Reporting
1. Progress reports (half-yearly) Unit 2 2 2 2 2 2 2 14 500 1.000 1.000 1.000 1.000 1.000 1.000 1.000 7.000
2. Progress notes PSC (half-yearly) Unit 2 2 2 2 2 2 2 14 100 200 200 200 200 200 200 200 1.400
3. Progress notes PSC (half-yearly) Unit - - - 1 - - - 1 2,000 - - - 2.000 - - - 2.000
4. Programme Completion Report Contract - - - - - - 1 1 20,000 - - - - - - 20.000 20.000
Subtotal 1.200 1.200 1.200 3.200 1.200 1.200 21.200 30.400
Total Investment Costs 153.200 40.200 38.200 132.200 38.200 40.200 168.200 610.400
II. Recurrent Costs
A. Planning Monitoring & Evaluation (PM&E) Officer /d Person year 0,5 1 1 1 1 1 1 6,5 75,122 37.561 75.122 75.122 75.122 75.122 75.122 75.122 488.293
Total Recurrent Costs 37.561 75.122 75.122 75.122 75.122 75.122 75.122 488.293
Total 190.761 115.322 113.322 207.322 113.322 115.322 243.322 1.098.693
_________________________________
\a including census; establishing and revisiting RIMS baseline and application of MPAT (Multidimensional Poverty Assessment Tool)
\b and application of MPAT (Multidimensional Poverty Assessment Tool)
\c This includes the f inal Beneficiary Impact Sudy that w ould be used to inform the Programme Completion Report
\d Profile includes Know ledge Management
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Appendix 10: Economic and Financial Analysis
Table A
Beans Onions Irish Potato Tomato Cabbage Farm 1 Farm 2
PY125,722- 44,113- 61,561- - - - - 36,770- 55,961-
PY24,487- 15,599- 37,904- 181,105- 707,336- 174,889- 229,685- 66,106- 60,679
PY3 14,678 30,024 23,710- 403,124 152,372- 20,242- 7,503 19,328- 198,257
PY430,249 80,210 37,127 987,353 929,807 132,903 157,427 53,874 391,428
PY540,900 100,740 55,415 1,685,888 1,623,512 403,159 361,117 101,709 549,918
PY640,900 100,740 55,415 2,088,075 2,622,447 538,287 503,803 150,772 698,696
PY7 40,900 100,740 55,415 2,088,075 2,622,447 538,287 503,803 150,772 698,696
PY840,900 100,740 55,415 2,088,075 2,622,447 538,287 503,803 150,772 698,696
PY940,900 100,740 55,415 2,088,075 2,622,447 538,287 503,803 150,772 698,696
PY1040,900 100,740 55,415 2,088,075 2,622,447 538,287 503,803 150,772 698,696
109,995 283,743 66,328 5,997,705 6,568,232 1,260,435 1,157,695 301,060 2,129,467
250 645 151 13,631 14,928 2,865 2,631 684 4,840
60% 71% 24% 323% 105% 88% 77% 49% 227%
NPV (Mk)
NPV (US$)
FIRR (@12%)
F
I
N
A
N
C
I
A
L
A
N
A
L
Y
S
I
S
Crop Models Farm Models
Crop Models Incremental Benefits (Mk)Farm Models
Incremental Benefits
Table C
FINANCIA
L
MAIN ASSUMPTIONS & SHADOW PRICES1
Output Av. Incremental Price (Mk/kg) Input prices Price (Mk)
Seeds (per Kg) 681
Farmyard manure (per ton) 2000
Basal fertilizer (per kg) 320
Top dress fertilizer (per Kg) 300
Herbicides (per Kg) 7000
Insecticides (per litre) 2200
Fungicide (per Kg) 3500
Gypsum (kg) 400
ECONOM
IC
Official Exchange rate (OER) Discount rate (opportunity cost of capital)
Irish Potato 209% 240
Tomato 125% 760FINANCIA
L
Cabbage NO WOP 200
Beans 30% 350
Onions 153% 600
Output Av. Incremental Price (Mk/kg) Input prices
Maize 88% 80
Groundnut 125% 350
440 12%
396 12%
0.9 0.9
0.65 1.06ECONOM
IC
Official Exchange rate (OER) Discount rate (opportunity cost of capital)
Shadow Exchange rate (SER) Social Discount rate
Standard Conversion Factor Output conversion factor (average)
Shadow Wage Rate Factor (SWRF) Input Conversion factor (average)
Table D
Items Target HH Y 1 Y 2 Y 3 Y 4 Y 5 Y6 Y7 Total
FARM 1 rain-fed only 2000
Adoption rate 80% 5% 20% 20% 20% 10% 5% 5%
No. of HH 1600 80 320 320 320 160 80 80 1,360
Cummulative no. of HH 320 640 960 1280 1440 1520 1600 7760
FARM 2 rain- fed & irrigation 17500
Lot 1 in ha 439 1033 725 2197
Lot 2 in ha 397 1192 397 1986
Lot 3 in ha 191 572 191 954
Total 439 1033 1122 1192 588 572 191 5137
adoption rate 90% 5,137
no. of HH/a 15750 1,362 3,206 3,482 3,699 1,825 1,775 593 15,942
cummulative no. of HH 1,362 4,568 8,050 11,750 13,574 15,350 15,942
Total no. of HH 1,442 3,526 3,802 4,019 1,985 1,855 673 17,302
Total cummulative no. of HH 17350 1,442 4,968 8,770 12,790 14,774 16,630 17,302
Beneficiaries, Adoption Rate, Phasing in
Table B
PROJECT COSTS AND INDICATORS FOR LOGFRAME
TOTAL PROJECT COSTS (in million USD) 83.95 8.13
Beneficiaries 97,500 People 19,500 Households 800 groups
Cost per beneficiary 861 USD x person 4,305 USD x HHAdoption
rates
Base costs 77.1 PMU
Agriculture for irrigation
and rain-fed systems20.9
Good agricultural practices and value
chain improvements adopted, nutrition
education & improved stoves
17,000 households adopt better agricultural
practices; yields increase, higher income,
productivity and more diversification. 15,000
HHs gain nutrition education. 15000 stoves are
improved.
Programme
management and
coordination
9.3Knowledge management on good
agricultural practices and value chains
85%
Components and Cost (USD million) Outcomes and IndicatorsIrrigation development
and catchment
management
53.7 Development of 15 irrigation schemes. 5200 ha covered by irrigation schemes; 1000
ha of soil and water conservation.
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Table E
NET
INCREMENT
AL BENEFITS
PY1 -195 4,635 1,186 5,821 -6,016
PY2 -445 11,953 1,320 13,273 -13,717PY3 -54 13,926 1,309 15,235 -15,289PY4 1,443 9,325 1,285 10,610 -9,166
PY5 4,540 6,007 1,246 7,253 -2,713PY6 8,563 4,812 1,192 6,004 2,559
PY7 12,964 1,249 551 1,800 11,164
PY8 16,626 0 551 551 16,075
PY9 19,275 0 551 551 18,724
PY10 20,674 0 551 551 20,123
PY11 21,421 0 551 551 20,870
PY12 21,609 0 551 551 21,058
PY13 21,609 0 551 551 21,058
PY14 21,609 0 551 551 21,058
PY15 21,609 0 551 551 21,058
PY16 21,609 0 551 551 21,058
PY17 21,609 0 551 551 21,058
PY18 21,609 0 551 551 21,058
PY19 21,609 0 551 551 21,058
PY20 21,609 0 551 551 21,058
29,770
NPV@12 % (Mk '000 ) 13,098,790
20.0%
NPV@12% (USD '000)
EIRR
E
C
O
N
O
M
I
C
A
N
A
L
Y
S
I
S
NET INCREMENTAL COSTS
Cash
Flow
(USD
'000)
Total
Incremental
Benefits
(USD'000)
Economic
Investment
Costs
(USD'000)
Economic
Recurrent
Costs
(USD'000)
Total
Increment
al Costs
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Table F
?% IRR (%)NPV (USD
M)
20% 29,755
-10% 18%22,484
-20% 16%15,214
-50% 10% 6,599-
10% 22%37,026
Project benefits 20% 23%44,297
Project costs 10% 18%25,460
20% 17% 21,165
50% 14%8,279
17%19,965
15%11,224
1 year lag in ben.
SENSITIVITY ANALYSIS (SA)
Link with the risk matrix
Base scenario
Project benefits
Low implementation readiness and GoM capacity hamper start-up of
Programme; allocation of land resources, registration of WUAs and
extreme events delays implementation progress; achievement of
inclusiveness and local l ivelihood improvements takes longer than
foreseen. 2 years lag in ben.
Availability of rural financial services more costly than foreseen;
Extreme events affecting market prices.
Project benefits
Project benefits
Project benefits
Inadequate funds reserved for catchment management; unit cost for
irrigation development higher than foreseen; cost for climate-proof
(extremen events) infrastructure higher than foreseen.Project costs
Project costs
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Financial analysis
Objectives & scope
1. The objectives of this financial analysis are: (i) to assess the financial viability of the development interventions promoted under PRIDE; (ii) to examine the impact of Programme interventions on the net incomes of the households (HHs) targeted; and (iii) to provide the basis for the economic analysis of the Programme.
Assumptions
2. The following assumptions underlie the financial analysis of the Programme:
The horticulture crops to be produced under irrigation will start generating benefits in year 2. The year 1 benefits are kept equal to the WOP situation, because in Y1 the first irrigation lot will be constructed with little incremental benefits realized.
The horticulture crops will reach full production in year 6 and the rain-fed crops in year 4 or 5.
The national average cultivable land holding in Malawi is 0.87 ha per household and this is used as standard size for the HH farm models in the analysis. The irrigation schemes will be subdivided into 0.1ha plots and it is assumed that the average irrigation landholding will be 0.29 ha per HH, which is around 30% of the 0.87ha total land holding. The 0.3ha is assumed because: (i) not all HHs will adopt farming in the irrigated scheme and therefore some farming HH will have the opportunity to obtain more than one 0.1ha plot; (ii) experience with existing irrigation schemes in Malawi learns that to have a meaningful impact for a HH a minimum of 0.2ha is needed; and (iii) in Malawi, 0.3ha is a widely used and accepted land size to have on irrigated scheme.
Of the irrigated land, 10% is deducted for the construction of on-farm irrigation infrastructure, like outlets, bunds, canals and drains.
The target HHs in the programme area practice subsistence rain-fed agriculture, producing maize as main staple, groundnut and/or beans complemented with a small selection of various vegetables. Crop husbandry and harvesting techniques are traditional, and the rural households have limited access to new and emerging technologies. There are opportunities for enhancing productivity increases by adopting inter-cropping and by better sequencing of crops under rain-fed conditions, in particular for maize and groundnut.
Sufficient family labour is available for any extended and expanded agricultural operations. For the intensive agricultural activities, like land preparation, weeding and harvest, HHs usually hire labour. Agricultural mechanisation or animal drawn ploughs are rarely used.
Farmers currently retain seeds and planting materials from their own harvest. Seed selection and exchange is not commonly practiced. The households carry forward sufficient seed to next season's crops, but these are often of poor quality. Availability of quality seed and seedlings remains an issue. With improved practices and extension support, crop productivity can be enhanced. The Good Agricultural Practices (GAP) and irrigation models assume purchases and the use of improved seed (certified and quality declared seed). Furthermore, it is assumed that for crops like beans, groundnut and Irish potato, farmers will replace every year, 1/3 of their seed for new seed.
With training, technology support and input services, the rural households are capable of undertaking improved farming practices and thereby enhancing productions at farm level. Soil health is poor and therefore there is a need for continued application of farm yard manure and compost to restore the soil health and at the same time sustain productivity. Application and availability of manure remains limited because of the small livestock herds. The application and availability of compost is also limited because it competes with animal feed. With GAP it is assumed that farmer HHs will produce and use 1t/ha of compost, including soil cover from harvest residues.
In the current situation, all marketable surplus is sold fresh to local traders, buyers or middlemen. Households produce little marketable surplus and do not have any organised marketing structure or institutions, but generally understand the advantages of collective
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marketing and are willing to organise themselves in groups for receiving any technology packages and output marketing.
Market demand is assumed for all analysed crops, especially in the off-season window during which PRIDE beneficiaries would aim to sell their high value crops under irrigation. The Market Linkage component aims to expand and strengthen market linkages.
The Farm Input Subsidy Program (FISP) of the Government of Malawi (GOM) is not taken into account in the analysis. This is for three reason: (i) the FISP packages might not be available to all the PRIDE beneficiaries; (ii) the crop models and HH models should be financially viable without any subsidy; and (iii) FISP is not available for high value crops which are generally targeted by the interventions proposed under PRIDE. Over the past 10 years, FISP has contributed to an increase of use of hybrid maize seed, fertilizer and chemicals by all farmers.
With multiple Micro Finance Institutions present and active in Malawi, the target HHs have access to institutional credit mostly in the form of group credit. It is assumed that the target HHs can access such services for essential seasonal credit. However the lending rates in Malawi are high with rates between 40%–60% per annum.
Transport by head load is the most common mode of transport within and between villages and to nearby markets. On average, cost of transportation from farm gate to the nearest market or main road is estimated at MK 62 per ton per km. The distance between farms and the nearest main road is estimated at 10 Km.
Within Malawi commodity price differences exist, because of harvest seasonality and spatially separated markets with little price information exchange. For the analysis, country averages are used based on March 2015 input and output price estimates.
Given the wide range of rain-fed and irrigated farming systems and cropping patterns existing in the country’s agro-ecological zones it is not possible to describe all rain-fed and potential irrigated crop production models. The analysis will consider some of the most common high value irrigated crops, such as onion, Irish potato, tomato, and cabbage.
Taxes. The financial indicator chosen for the analysis is the net income before tax. Therefore taxes are not taken into account.
Models
3. Overview. Nine financial models have been developed, comprising of two farm HH models and 7 crop models. The two Farm HH models are aggregated from crop models based on two different farm systems: (i) rain-fed farming only; and (ii) rain-fed and irrigated farming combined. Crop models are developed for Maize, Groundnut, Bean, Onion, Irish Potato and Cabbage. The economic rationale for PRIDE is based on: (i) improved agricultural productivity and reduction of post-harvest losses in both rain-fed only as well as in rain-fed - irrigated farm systems as a result of the implementation of GAP (e.g. intercropping, post-harvest handling & storage, minimum soil disturbance, crop rotation, composting); and (ii) increased cropping intensity and switching to high value crops on irrigated schemes, including during dry-season periods. With a potential of yields increasing by 50% - 100% when using GAP and integrated soil fertility measures, improving HH income and food security.
4. The list of HH models used in the analysis is provided in table 1 and a description of the financial and economic models is reported in what follows. The detailed budgets are reported in the annex 1 of the present appendix.
Table 1: List of HH Farm Financial Models
Farm model Farming System
Rain-fed crop models: Irrigated crop models:
Farm HH model 1 Maize intercropped with pigeon peas
Groundnut
Bean
none
Farm HH model 2 Maize intercropped with pigeon peas
Groundnut
Bean
Onion
Irish Potato
Tomato
Cabbage
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5. Cropping pattern. While rain-fed production at smallholder level in Malawi mainly relies on subsistence food crops in the form of cereals (maize, rice, sorghum and millet), roots and tubers (cassava, sweet potato and Irish potato) and legumes (beans, groundnuts, soybean, pigeon pea, cowpea), the mixed maize farming system is by far the most dominant in the country and cuts across all the agro ecological zones. This justifies selecting maize and groundnut production models as the main baseline crop production activities in rain-fed agriculture at national level. Therefore, the baseline farm models used in the analysis are: predominantly rain-fed maize, groundnut and to a much lesser extend beans and vegetables, including Irish potatoes. In table 2 below the detailed cropping pattern for farm 1 and 2 is provided.
Table 2: Cropping pattern for the farm models
CROPPING PATTERNS (.87 hectare)
Name of Grop % ha % ha
Cropping pattern 0.87 0.87
FARM 1
Rainfed
Maize 76.0% 0.661 55% 0.48
Groundnut 15.0% 0.131 25% 0.22
pigeon pea intercropped/a 0.0% 0.000 20% 0.17
Beans 4.0% 0.035 6% 0.05
Onion/b 0.5% 0.004 2% 0.02
Irish Potato/c 4.0% 0.035 10% 0.09
Tomato/b 0.5% 0.004 2% 0.02
Total 100% 0.87 120% 1.04
FARM 2
Rainfed 67% 0.58
Maize 76.0% 0.66 65% 0.38
Groundnut 15.0% 0.13 25% 0.15
pigeon pea intercropped 0.0% 0.00 20% 0.12
Beans 4.0% 0.03 10% 0.06
Onion 0.5% 0.00
Irish Potato 4.0% 0.03
Tomato 0.5% 0.00
Total 100% 0.87 120% 0.70
Irrigated 33% 0.29
Nett of irrigation infrastructure 0 10% 0.26
Onion 0% 35% 0.09
Irish Potato 0% 40% 0.10
Tomato 0% 15% 0.04
Cabbage 0% 10% 0.03
Total 100% 0.26
Total 0.87 0.96
a\ With intercropping the landuse ratio goes above 100%
b\ for WP rain-fed assumed at 60% of WP irrigated
c\ for WP rain-fed assumed at 50% of WP irrigated
WOP WP
6. Methodology. The analysis of the household models is developed by building financial crop budgets and deriving selected financial performance indicators that will be used to examine the impact of Programme interventions on targeted HH in a Farm model, based on their farming system. The crop models are based on 1 hectare size and the Farm models are based on the national average land size of 0.87 ha per HH. Budgets are built taking into consideration several variables (including revenues, investment and operating costs) in both ‘with’ and ‘without’ Programme scenarios. It is assumed that the ‘without’ scenario coincides with the current situation (i.e. baseline is assumed to be static).
7. Auto-consumption is included in the models to evaluate whether the farming HH produce the full staple consumption themselves. With the number one staple food being maize, the annual maize
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consumption is 1,200kg (300kg per year per adult, 3 adults per HH and 150kg per year per child, 2 children per HH). Traditionally, the average HH does produce just enough post-harvest quantity for own consumption. Cash crops like groundnut are widely grown and are partly used to fulfil the HH consumption as needed. Auto-consumption would be valued at the retail price and thus is not included in the financial budget, because buying maize is equal to selling maize for the family HH budget.
8. Labour. Hired and family labour are both taken into account in the models and labour costs are included in the computation of operating costs. The costs for hiring external labourers are estimated using the average wages for general workers (unskilled farm workers). The wage for Family labour adopted in the financial analysis (340 MK/person-day) corresponds to the minimum wage rate for unskilled agriculture work, corrected using a Shadow Wage Rate Factor (SWRF) of 0.65 factor which takes into account the estimated unemployment rate in the rural areas of the country, which is considerably higher than the low official unemployment rate estimates available (3%). Net income after family labour – the indicator considered to compute activity benefits – includes the cost of family labour, estimated at the hired labour wage corrected with the SWRF. Family labour costs are therefore explicitly taken into account so to make sure that family incomes (net benefits and remuneration of family labour) are sufficient to cover the costs of all incremental labour required in setting up the new activities.
9. Price data. Financial output and input prices are derived from information compiled at national level by NASFAM and FEWSNet Malawi Price bulletin. The prices of inputs as well as all technical parameters used to build the financial models were derived from information obtained during the final design mission (March 2015) with the help of the SAPP commodity and agronomy team and inputs from key stakeholders, like Total Land Care Malawi.
10. Discount rate. This rate should provide the alternative financial returns/opportunity costs to the investor and is estimated at 12%, based on the average long term deposit rates over the past four years, as presented in table 3 below:
Table 3: Deposit interest rate paid by commercial or similar banks in Malawi
Year 2011 2012 2013 2014 Average
Rate (%) 4.1% 11.1% 18.4% 13.2% 11.7%
Source: The World Bank.
11. Farm models. These financial farm models describe the current situation and the traditional practices generally adopted by farmers (the without programme situation, WOP) compared with the with programme (WP) situation.
12. FARM 1 rain-fed.
a. In the WOP situation, most of the HH land is allocated for traditional rain-fed maize and groundnut production. The GOM has primarily supported maize production through their FISP, since the last 10 years. Because of FISP, the use and availability of hybrid seed and fertilizers has brought substantial improvement to all farmers and not only FISP eligible farmers. FISP has brought the average production to a higher level (1,800 kg/ha) than before (1,000kg/ha). The WOP situation is cropped according to traditional techniques (i.e. mono cropping, land clearing, ridging and no use of mulching or cover crops). Yields are much below the potential and the returns to family labour are low. Post-harvest practices result in low production and high losses after harvest.
b. In the WP situation, the Programme will promote the adoption of good agricultural practices in rain-fed fields through the development of extension and demonstration activities. Farmers reached by programme activities will be able to switch from traditional to improved cropping and intercropping, applying post–harvest technologies and improved seeds and inputs. Which, combined would increase production, productivity, net incomes, and overall food security. It was assumed that with the production increase the land allocated for the main traditional crop, maize, will reduce from 76% to 55%. Leaving more land for high value crops. Furthermore, with intercropping the land use ratio increases above 100%.
13. FARM 2 rain-fed and irrigated.
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a. The WOP situation is the same as described under FARM 1a above. PRIDE is developing new irrigation sites and therefore there is no WOP with irrigation available.
b. In the WP situation, farmers will be able to have access to irrigation/ farm water (only from year 2onward) and will diversify their crops on the irrigated plot to higher value crops such as, tomatoes, onions, cabbages, and Irish potatoes. Moreover, with reliable access to farm water, farmers will be able to get two or sometimes even three crops in a year. This model simulates the introduction of irrigated high value vegetables into existing crop farming systems. Irrigated vegetable production is intensive and requires a significant amount of labour and inputs. However, high yield levels and higher market prices make these production activities profitable. The model also considers post-harvest techniques and activities (drying, packing) to reduce the post-harvest losses. A contribution to the WUA of 2,335
21 MK/ha as fee to the Water User Association (WUA) for water is assumed in all the
irrigated models. In addition, the models assume that labour is required to build irrigation structures (during land preparation) and for operation and maintenance of such structures. The rain-fed and irrigated crops will benefit from the adoption of GAP, as in the situation of FARM 1. The IRR is 227% and the NPV 2129467 are considered as high, mainly because: of the high value crops it produces, which is not the case for Farm 1.
14. Crop models. The underlying crop models, all show positive NPV and IRR. The higher production for the rain fed crops is based on: (i) reduction of post-harvest losses; (ii) improvement of agriculture practices by adopting GAP; and (iii) by increasing inputs in terms of better seed and better usage of fertilizer (including compost) and chemicals. Because fertilizer and chemicals are very costly for a HH budget, the increase of these inputs are kept to a minimum, also to reflect the possibility and willingness of a HH to invest in these inputs. The IRR for irrigated crops (onion, Irish potato, tomato and cabbage) are high. These high IRR (especially for onion and cabbage) can be explained, simply because in the WP(irrigation) situation, it is possible to harvest up to three times more than in the non-irrigated situation, resulting in high IRRs. The reliable water supply has also a substantial positive effect on production volume and quality(size) of the produce.
15. Results. The expected financial benefits for targeted HH are illustrated in table 4: Farming Production Budgets Summary, presented below. Indicators selected include net income at full development after labour, IRR and NPV. It is understood that such net incomes may not be achieved in one year; thus a gradual achievement of the expected benefits has been used in the analysis. Results suggest significant potential for creating positive net incomes for targeted households in selected productive activities especially in the combination of rain-fed and irrigated farming. The IRR of FARM 1 is high because of: (i) the impact of intercropping, which brings the land use ration up to 120%; (ii) the post-harvest loss reduction of the underlying crops; and (iii) production increase through increase of farm inputs. The IRR is not available for FARM 2, because it has no negative value in the first year. The NPV is high, mainly because: of the high value crops it produces (predominantly the cash crop Irish potato), which is not the case for Farm 1.Detailed results are included in annex1.
16. Cash flow. The cash flow analysis shows for only for Farm model 1, in the initial year (Y1) of the Programme a negative cash flow. This negative cash flow is mainly attributed to the increase of inputs and the gradual (realistic) increase in production volumes. The Programme has no credit facility component but instead assumes the use of available credit options through existing MFIs. Furthermore, to support the adoption in the initial year, input demonstration packages are made available for the lead farmers to demonstrate the benefits from an increased use of inputs.
21
Source: South Rukuru feasibility study, EFA section, GOPA consultants.
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Table 4: Farming Production Financial Budgets Summary
Crop / Farm budgets
WOP WP 1 Increm. WOP WP 1 Increm.
Farm 1 - - - 75422 226194 200% 301060 49%
Farm 2 - - - 75422 774118 926% 2129467 227%
Maize / Maize intercropped 1440 2708 88% 31623 72522 129% 109995 60%
Groundnut 450 1013 125% 105826 206566 95% 283743 71%
Beans 376 828 30% 18857 74271 294% 66328 24%
Onion 2700 6840 153% 1459186 3547261 143% 5997705 323%
Irish Potato 7000 21600 209% 921390 3543837 285% 6203869 98%
Tomato 800 1800 125% 375843 914130 143% 1260435 88%
Cabbage 0 5060 n/a 92317 503803 446% 1157695 77%
IRRPost-harvest yields Net income (Mk) after labour
NPV (Mk)
Programme Benefits and Beneficiaries
17. Programme Benefits. PRIDE will generate financial and social benefits by promoting investments and activities aimed at introducing good agricultural practices including post-harvest management in rain-fed and irrigated crop production.
18. Financial benefits will be in the form of increased financial returns (net incomes) of the households targeted by the Programme.
19. Social benefits will include a reduction in poverty rates in the areas targeted by the Programme. This will be the effect of the increased financial returns for HHs consequent to Programme intervention and of improved employment opportunities in the agriculture sector. Other social benefits include improved HH nutrition and increased food security through diversification of crop production or increased incomes which could be used to improve diets. Irrigation brings the possibility for farmers to diversify in vegetable crops, having a positive effect on the HH diet composition. A HH expands their cultivated products with at least 4 new crops, resulting in a 20% increase in diet diversification.
20. Direct Programme Beneficiaries. The Programme is expected to benefit approximately 17,500 smallholder farm HH in the Programme areas. Assuming an average household size of 5 people, total beneficiaries would be about 87,500 people. The total number of PRIDE direct beneficiaries expected over the years is reported in table 5.
Table 5: Direct Programme Beneficiaries
21. Indirect Programme Beneficiaries. There will also be indirect beneficiaries, primarily the large population of maize producers who will benefit indirectly from the Programme through improved access to information and improved agriculture technologies. Consumers would also benefit from more, better quality vegetable products, with positive effects in terms of improved nutrition and overall food security.
22. Agriculture service providers would benefit from increased service and input demand (e.g. fertilizers, seeds, marketing services). In addition to this, all those living in the rural areas where supported households will be located will benefit from strengthened local economies resulting from inflows of income and strengthened local demand. There will also be increased job opportunities for unemployed and underemployed women and men living in rural areas. The expansion of rain-fed and
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irrigated crop production will also promote development of other complementary economic activities (e.g. input dealers). Thus, Programme activities will indirectly stimulate the rural economy in the Programme area, benefiting rural population (including the rural poor) through increased demand for goods and services, additional employment opportunities and reduced rural-urban migration.
Economic analysis
Objectives
23. The objectives of this economic analysis are: (i) to examine the viability of the Programme as a whole, in which aggregated economic benefits are compared with total outflow; (ii) to assess the Programme’s impact and the overall economic internal rate of return (EIRR); and (iii) to perform sensitivity analysis in order to measure the robustness of the economic analysis and to measure variations in the overall EIRR due to unforeseen factors.
Assumptions
24. The following assumptions underlie the economic analysis of the Programme:
The analysis is based on a 20 year period during which PRIDE will generate benefits, including the 7-year Programme implementation period.
The costs and revenues estimated in the financial analysis provide the basis for an evaluation to determine the likely economic benefits and costs to the national economy as a whole.
The main benefits of the Programme would accrue to the Malawi economy in terms of the improved farming systems that will sustainably increase food crop yields, diversify crop production, improve soil fertility and structure, and increase overall food security (in terms of increased food availability, access and improved nutrition). Furthermore, reduced post-harvest losses will be realized by promoting the adoption of improved post-harvest management practices.
The analysis assumes an adoption rate of 80% for the Rain-fed only interventions and a 90% adoption rate for the Irrigation interventions.
The phasing of the beneficiaries into the Programme follows the irrigation works phasing.
Economic prices have been computed using a Standard Conversion Factor (SCF) equal to 0.899
22. For some key imported items (fertilizers), economic local market prices have been
derived starting from the international free on board prices at nearest port and considering tariffs and taxes, marketing charges and transportation costs. Details are shown in the annex 1 to the present appendix.
Economic Programme Costs. Financial costs have been converted to economic costs, excluding taxes and duties as well as price contingencies, using the Costab software. There are no further investment costs after PY7, however, the following annual costs were included from Year 10 to 20: (i) recurrent costs in PY8 (with the exception of Programme management recurrent costs); and (ii) 20% of total equipment and material, as it is assumed that these costs will have to be incurred if the future benefits of the PRIDE are to be sustained. In order to avoid double counting of costs in the final aggregation, Programme investment costs are not included in the models.
Programme Economic Internal Rate of Return and Net Present Value
25. The economic analysis of the Programme indicates that PRIDE is robust in economic terms. The overall Economic Internal Rate of Return (EIRR) of the Programme is estimated at 20% (base case) which is above the opportunity cost of capital in Malawi, estimated at 12%. The EIRR is estimated based on the assumption that 80% of target farmers will adopt the GAP technology packages promoted by the Programme and 90% would want to farm on irrigated land.
26. The Net Present Value (NPV) is USD 29 million over the 20-year period of analysis, with the benefit stream-based on the quantifiable benefits that relate directly to the activities undertaken following implementation of the components. These figures are considered as reasonable given the
22
Estimated using: SCF=(M + X)/[(M + Tm)+(X - Tx)], M=total imports, X=total exports, Tm=import tax, Tx=export tax.
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fact that benefits of the Millennium Innovation Challenge Fund are not included but the cost of MICF is. The summary of the economic analysis is presented in annex 2.
27. Sensitivity Analysis. The EIRR was subject to sensitivity analysis in order to measure variations due to unforeseen factors and account for risk. Criteria adopted in the sensitivity analysis are: 10, 20 and 50% cost over-run, 10 and 20% increase in benefits, 10 to 50% benefits decrease and 1 to 2 year implementation delay. The Programme is robust because even with large variations in cost +20% or benefits -20% the EIRR remains above the opportunity cost of capital of 12%. Results are presented in table 6.
Table 6: Sensitivity analysis
Year ERR NPV /a
base scenario 20.0% 29,755
Costs+10% 18.4% 25,460
Costs+20% 17.1% 21,165
Costs+50% 13.7% 8,279
Benefits +10% 21.5% 37,026
Benefits +20% 23.0% 44,297
Benefits -10% 18.3% 22,484
Benefits -20% 16.4% 15,214
Benefits -50% 9.7% -6,599
I year lag in benefit 17.1% 19,965
2 years lag in benefit 14.8% 11,224
a/ Net Present Value (NPV), @12%.
28. The Programme is much more sensitive to benefits decrease and delays than to costs increases (macroeconomic and institutional risk). Improved market linkages and private sector involvement have a better impact on the programme’s economic outcomes, than the tight control of cost overruns.
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ANNEXES
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ANNEX 1: FINANCIAL ANALYSIS
Table 1: Financial & Economic Prices
Financial
Prices
Economic
Prices
Unit Mk Mk
Outputs Crops
Onion Kg 600 539
Beans Kg 350 315
pigeon pea Kg 150 135
groundnut Kg 350 315
Irish potato Kg 240 216
Tomato Kg 760 683
Cabbage Kg 200 180
Maize Kg 80 72
Inputs Seed
Onion kg 80000 71896
Irish potato kg 300 270
Tomato kg 24000 21569
Cabbage kg 24000 21569
Maize (hybrid) kg 950 854
groundnut kg 1000 899
Beans kg 1200 1078
Pigeon pea kg 750 674
Seeds, Fertilizers, Pesticides, etc. 0
Locally produced seed (forage) kg 681 612
Farmyard manure/compost t 2.000 1797
Basal fertilizer (e.g. 23:21:0) Kg 320 507
Top dress fertilizer (e.g. CAN, Urea) Kg 300 513
Herbicides (e.g. Glyphosate, roundup)l 7.000 6291
Insecticides (e.g. Malathion, Dimethoate)kg 2.200 1977
Fungicide (e.g. Dithane M45) kg 3.500 3145
Inoculant packet 400 359
Gypsum kg 60 54
Other Costs
Transportation (10 km) t 619 556
Transportation forage ton/km 62 56
Transportation - other Kg/km 0,40 0
Oxen rental (land preparation) pair day 7.429 6676
Packaging materials 50kg bag 80 72
Labour
Family labour person-day 340 306
Hired labour (land preparation & harvest)person-day 523 470
Drivers person-month 128.894 115838
Labour social insurance % 15 13
Source: Nasfam.org Indicative market price 2015 and FEWS Net Malawi Price bulletin
Description
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Farm Models:
FARM 1: Rain fed only Parameters Unit WOP WP
Maize ha 0.66 0.48
Groundnut ha 0.13 0.22
pigeon pea ha 0.00 0.17
Beans ha 0.03 0.05
Onion ha 0.00 0.02 @ 60%
Irish Potato ha 0.03 0.09 @ 50%
Tomato ha 0.00 0.02 @ 60%
Cabbage ha
Total ha 0.87 1.04
Financial Budget
Unit Without
Project Y1 Y2 Y3 Y4 Y5 Y 6 Y 7 Y 8 Y 9 Y 10
Value of production Mk 169459 214783 239301 290814 369721 420723 471536 471536 471536 471536 471536
Maize Mk 76170 64425 71316 75243 80101 81824 81824 81824 81824 81824 81824
Groundnut Mk 20554 40822 47959 59378 71938 77077 77077 77077 77077 77077 77077
pigeon pea Mk 4437 9396 11876 13350 14877 14877 14877 14877 14877 14877
Beans Mk 4580 8759 10047 10819 14132 15128 15128 15128 15128 15128 15128
Onion Mk 7047 16913 18672 24896 31120 38561 42846 42846 42846 42846 42846
Irish Potato Mk 58464 73080 75168 100224 149083 180403 225504 225504 225504 225504 225504
Tomato Mk 2645 6348 6744 8379 9997 12854 14282 14282 14282 14282 14282
Cabbage Mk
Total production costs Mk 94037 176131 229985 234720 240425 243592 245342 245342 245342 245342 245342
Maize Mk 55261 73804 84170 85746 87208 88033 88033 88033 88033 88033 88033
Groundnut Mk 6743 27400 28334 29830 31475 32148 32148 32148 32148 32148 32148
pigeon pea Mk 26838 30607 31180 31712 32012 32012 32012 32012 32012 32012
Beans Mk 3923 10988 11041 11073 11210 11251 11251 11251 11251 11251 11251
Onion Mk 700 1679 5329 5453 5578 5727 5812 5812 5812 5812 5812
Irish Potato Mk 26400 33000 65857 66772 68556 69700 71347 71347 71347 71347 71347
Tomato Mk 1010 2424 4646 4666 4686 4721 4738 4738 4738 4738 4738
Net Income 75422 38652 9316 56094 129296 177131 226194 226194 226194 226194 226194
Incremental -36770 -66106 -19328 53874 101709 150772 150772 150772 150772 150772
NPV@12% 301060
IRR @ 12% 49%
ItemsWith Project
FARM 2: Rain-fed and irrigated Parameters Unit WOP WP
Maize ha 0.66 0.38
Groundnut ha 0.13 0.15
pigeon pea ha 0.00 0.12
Beans ha 0.03 0.06
Onion ha 0.00 0.09
Irish Potato ha 0.03 0.10
Tomato ha 0.00 0.04
Cabbage ha 0.00 0.03
Total ha 0.87 0.96
Financial Budget
Unit Without
Project Y1 Y2 Y3 Y4 Y5 Y 6 Y 7 Y 8 Y 9 Y 10
Value of production Mk 169459 186599 510138 654718 857058 1021525 1175024 1175024 1175024 1175024 1175024
Maize Mk 76170 64425 71316 75243 80101 81824 81824 81824 81824 81824 81824
Groundnut Mk 20554 40822 47959 59378 71938 77077 77077 77077 77077 77077 77077
pigeon pea Mk 4437 9396 11876 13350 14877 14877 14877 14877 14877 14877
Beans Mk 4580 8759 10047 10819 14132 15128 15128 15128 15128 15128 15128
Onion Mk 7047 7047 161744 215658 269573 334036 371151 371151 371151 371151 371151
Irish Potato Mk 58464 58464 178599 238132 354222 428638 535798 535798 535798 535798 535798
Tomato Mk 2645 2645 25038 31106 37115 47719 53022 53022 53022 53022 53022
Cabbage Mk 0 6040 12506 16627 22227 26149 26149 26149 26149 26149
Total production costs Mk 94037 167138 374036 381040 390208 396185 400906 400906 400906 400906 400906
Maize Mk 55261 73804 84170 85746 87208 88033 88033 88033 88033 88033 88033
Groundnut Mk 6743 27400 28334 29830 31475 32148 32148 32148 32148 32148 32148
pigeon pea Mk 26838 30607 31180 31712 32012 32012 32012 32012 32012 32012
Beans Mk 3923 10988 11041 11073 11210 11251 11251 11251 11251 11251 11251
Onion Mk 700 700 46159 47238 48317 49607 50350 50350 50350 50350 50350
Irish Potato Mk 26400 26400 156475 158650 162889 165607 169521 169521 169521 169521 169521
Tomato Mk 1010 1010 17249 17323 17397 17527 17591 17591 17591 17591 17591
Cabbage Mk 0 11975 12312 12560 12896 13131 13131 13131 13131 13131
Net Income 75422 19461 136101 273679 466850 625340 774118 774118 774118 774118 774118
Incremental -55961 60679 198257 391428 549918 698696 698696 698696 698696 698696
NPV @12% 2129467
IRR @ 12% 227%
ItemsWith Project
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Crop models
Maize Malawi PRIDE final design cropbudget: Maize Rainfed & Intercropped
Parameters Unit WOP WP
Plot size ha 1 1
Seeds maize Kg/ha 25 25
Seeds Pigeon pea Kg/ha 0 25
Manure/compost t/ha 0 1
Basal fertilizer (e.g. 23:21:0) Kg/ha 50 100
Top dress fertilizer (e.g. CAN, Urea) Kg/ha 50 100
Herbicides l/ha 0 2
Insecticides (e.g. Malathion, Dimethoate) Kg/ha 0 2
Land preparation pers-day/ha 10 15
Irrigation operation and maintenance pers-day/ha 0 0
Planting/transplanting/nursery pers-day/ha 7 7
Manure and fertilizer application pers-day/ha 3 5
Weeding pers-day/ha 7 4
Spraying pers-day/ha 0 2
Harvesting /stocking pers-day/t 5 8
Transport from field pers-day/t 16 16
Stripping/shelling/cleaning/Packing pers-day/t 8 16
Physical budget
Unit Without
Project Y1 Y2 Y3 Y4 Y5-10 Y 6 Y 7 Y 8 Y 9 Y 10
INFLOWS
production level 110% 115% 120% 125% 125% 125% 125% 125% 125% 125%
Harvest - maize Kg/ha 1800 1980 2070 2160 2250 2250 2250 2250 2250 2250 2250
Harvest - pigeon pea Kg/ha 0 200 400 500 550 600 600 600 600 600 600
Post-harvest loss % 20% 15% 10% 9% 7% 5% 5% 5% 5% 5% 5%
Post-harvest - Maize kg 1440 1683 1863 1966 2093 2138 2138 2138 2138 2138 2138
Post-harvest - Pigeon pea kg 0 170 360 455 512 570 570 570 570 570 570
Autoconsumption Maize kg 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200
OUTFLOWS
Inputs
Seed - Maize kg 25 25 25 25 25 25 25 25 25 25 25
Seed - Pigeon pea kg - 25 25 25 25 25 25 25 25 25 25
Manure/compost ton - 1 1 1 1 1 1 1 1 1 1
Basal fertilizer (e.g. 23:21:0) kg 50 75 100 100 100 100 100 100 100 100 100
Top dress fertilizer (e.g. CAN, Urea) kg 50 75 100 100 100 100 100 100 100 100 100
Herbicides Mk/l - 2 2 2 2 2 2 2 2 2 2
Insecticides (e.g. Malathion, Dimethoate) Mk/kg - 2 2 2 2 2 2 2 2 2 2
Sacks units 29 37 44 48 52 54 54 54 54 54 54
Labour
Land preparation (hired) pers-day 10 15 15 15 15 15 15 15 15 15 15
Harvesting /stocking (hired) pers-day 7 15 18 19 21 22 22 22 22 22 22
Irrigation operation and maintenance pers-day - - - - - - - - - - -
Planting pers-day 7 7 7 7 7 7 7 7 7 7 7
Manure application pers-day 3 5 5 5 5 5 5 5 5 5 5
Weeding pers-day 7 4 4 4 4 4 4 4 4 4 4
Spraying pers-day - 2 2 2 2 2 2 2 2 2 2
Transport from field pers-day 23 30 36 39 42 43 43 43 43 43 43
Shelling/cleaning/Packing pers-day 12 30 36 39 42 43 43 43 43 43 43
Total Hired pers-day 17 30 33 34 36 37 37 37 37 37 37
Total Family pers-day 52 77 89 95 101 105 105 105 105 105 105
Financial Budget
Without
Project Y1 Y2 Y3 Y4 Y5-10 Y 6 Y 7 Y 8 Y 9 Y 10
Value of production
Maize 115200 134640 149040 157248 167400 171000 171000 171000 171000 171000 171000
Pigeon Pea 25500 54000 68250 76725 85500 85500 85500 85500 85500 85500
Investments
Inputs
Seed - Maize Mk 23750 23750 23750 23750 23750 23750 23750 23750 23750 23750 23750
Seed - Pigeon pea Mk 0 18750 18750 18750 18750 18750 18750 18750 18750 18750 18750
Manure/compost Mk 0 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
Basal fertilizer (e.g. 23:21:0) Mk 16000 24000 32000 32000 32000 32000 32000 32000 32000 32000 32000
Top dress fertilizer (e.g. CAN, Urea) Mk 15000 22500 30000 30000 30000 30000 30000 30000 30000 30000 30000
Herbicides Mk 0 14000 14000 14000 14000 14000 14000 14000 14000 14000 14000
Insecticides (e.g. Malathion, Dimethoate) Mk 0 4400 4400 4400 4400 4400 4400 4400 4400 4400 4400
Sacks Mk 2304 2965 3557 3873 4166 4332 4332 4332 4332 4332 4332
Labour
Hired Mk 8996 15598 17146 17973 18740 19173 19173 19173 19173 19173 19173
Family Mk 17528 26277 30302 32451 34446 35572 35572 35572 35572 35572 35572
Sub-total operating costs 83577 154240 175905 179197 182253 183978 183978 183978 183978 183978 183978
Total production costs 83577 154240 175905 179197 182253 183978 183978 183978 183978 183978 183978
Net Income 31623 5900 27135 46301 61872 72522 72522 72522 72522 72522 72522
Incremental -25722 -4487 14678 30249 40900 40900 40900 40900 40900 40900
Items
ItemsWith Project
With Project
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Groundnut Malawi PRIDE final design cropbudget: Groundnut rainfed
Parameters Unit WOP WP
Plot size ha 1 1
Seeds groundnut Kg/ha 70 100 buy seed once in every 3 year, replace 1/3 every year
Manure/compost t/ha 0 1
Basal fertilizer (e.g. 23:21:0) Kg/ha 0 0
Top dress fertilizer (e.g. CAN, Urea) Kg/ha 0 50
Herbicides l/ha 2.5 4
Inoculant pack 0 0
Gypsum Kg/ha 0 100
Land preparation pers-day/ha 10 15
Irrigation operation and maintenance pers-day/ha 0 0
Planting & gap filling pers-day/ha 19 19
Manure and fertilizer application pers-day/ha 0 8
Weeding pers-day/ha 7 3
Spraying pers-day/ha 2 2
Harvesting /stocking pers-day/t 20 30
Transport from field pers-day/t 16 24
Shelling/cleaning/Packing pers-day/t 45 60
Physical budget
Unit Without
Project Y1 Y2 Y3 Y4 Y5-10 Y 6 Y 7 Y 8 Y 9 Y 10
INFLOWS
production level 110% 120% 130% 140% 150% 150% 150% 150% 150% 150%
Harvest - Groundnut Kg/ha 750 825 900 975 1050 1125 1125 1125 1125 1125 1125
Post-harvest loss % 40% 35% 30% 20% 10% 10% 10% 10% 10% 10% 10%
Post-harvest - Groundnut kg 450 536 630 780 945 1013 1013 1013 1013 1013 1013
Autoconsumption kg 70 70 70 70 70 70 70 70 70 70 70
OUTFLOWS
Inputs
Seed - Groundnut kg 23 33 33 33 33 33 33 33 33 33 33
Manure/compost ton - 1 1 1 1 1 1 1 1 1 1
Basal fertilizer (e.g. 23:21:0) kg - - - - - - - - - - -
Top dress fertilizer (e.g. CAN, Urea) kg - 50 50 50 50 50 50 50 50 50 50
Herbicides Mk/l - 4 4 4 4 4 4 4 4 4 4
Insecticides (e.g. Malathion, Dimethoate) Mk/kg - - - - - - - - - - -
Gypsum kg - 100 100 100 100 100 100 100 100 100 100
Sacks units 9 11 13 16 19 20 20 20 20 20 20
Labour
Land preparation (hired) pers-day 10 15 15 15 15 15 15 15 15 15 15
Harvesting /stocking (hired) pers-day 9 16 19 23 28 30 30 30 30 30 30
Irrigation operation and maintenance pers-day - - - - - - - - - - -
Planting pers-day 19 19 19 19 19 19 19 19 19 19 19
Manure application pers-day - 8 8 8 8 8 8 8 8 8 8
Weeding pers-day 7 3 3 3 3 3 3 3 3 3 3
Spraying pers-day 2 2 2 2 2 2 2 2 2 2 2
Transport from field pers-day 7 13 15 19 23 24 24 24 24 24 24
Shelling/cleaning/Packing pers-day 20 32 38 47 57 61 61 61 61 61 61
Total Hired pers-day 19 31 34 38 43 45 45 45 45 45 45
Total Family pers-day 55 77 85 98 111 117 117 117 117 117 117
Financial Budget
Without
Project Y1 Y2 Y3 Y4 Y5-10 Y 6 Y 7 Y 8 Y 9 Y 10
Value of production 157500 187688 220500 273000 330750 354375 354375 354375 354375 354375 354375
Investments
Inputs
Seed Mk 22167 31667 31667 31667 31667 31666.7 31667 31667 31667 31667 31667
Manure/compost Mk 0 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
Basal fertilizer (e.g. 23:21:0) Mk 0 0 0 0 0 0 0 0 0 0 0
Top dress fertilizer (e.g. CAN, Urea) Mk 0 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000
Herbicides Mk 0 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000
Insecticides (e.g. Malathion, Dimethoate) Mk 0 0 0 0 0 0 0 0 0 0 0
Gypsum Mk 0 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000
Sacks Mk 720 858 1008 1248 1512 1620 1620 1620 1620 1620 1620
sub-total inputs
Labour
Hired Mk 9937 16259 17730 20083 22672 23731 23731 23731 23731 23731 23731
Family Mk 18850 26191 28869 33152 37864 39791 39791 39791 39791 39791 39791
sub-total inputs
Sub-total operating costs 51674 125975 130273 137150 144714 147809 147809 147809 147809 147809 147809
Total production costs 51674 125975 130273 137150 144714 147809 147809 147809 147809 147809 147809
Net Income 105826 61713 90227 135850 186036 206566 206566 206566 206566 206566 206566
Incremental -44113 -15599 30024 80210 100740 100740 100740 100740 100740 100740
Return on family labour day 1908 801 1062 1393 1670 1765 1765 1765 1765 1765 1765
ItemsWith Project
ItemsWith Project
Republic of Malawi
Programme for Rural Irrigation Development
Design completion report
Appendix 10: Economic Analysis
146
Bean Malawi PRIDE final design cropbudget: BEANS RAINFED
Parameters Unit WOP WP
Plot size ha 1 1
Seeds Kg/ha 80 80 buy seed once in every 3 year, replace 1/3 every year
Manure/compost t/ha 0 1
Basal fertilizer (e.g. 23:21:0) Kg/ha 0 0
Top dress fertilizer (e.g. CAN, Urea) Kg/ha 0 0
Herbicides l/ha 0.0 4
Pesticides Kg/ha 30 60
Inoculant pack 0 4
Oxen rental (land preparation) pair day/ha 0 0
Land preparation pers-day/ha 20 20
Irrigation operation and maintenance pers-day/ha 0 0
Planting & gap filling pers-day/ha 5 5
Manure and fertilizer application pers-day/ha 0 2
Weeding pers-day/ha 15 10
Spraying pers-day/ha 0 0
Harvesting /stocking pers-day/t 7 7
Transport from field pers-day/t 7 7
Shelling/cleaning/Packing pers-day/t 10 20
Physical budget
Unit Without
Project Y1 Y2 Y3 Y4 Y5-10 Y 6 Y 7 Y 8 Y 9 Y 10
INFLOWS
production level 120% 130% 140% 160% 180% 180% 180% 180% 180% 180%
Harvest Kg/ha 470 564 611 658 850 900 900 900 900 900 900
Post-harvest loss % 20% 15% 10% 10% 9% 8% 8% 8% 8% 8% 8%
Post-harvest kg 376 479 550 592 774 828 828 828 828 828 828
Autoconsumption kg 100 100 100 100 100 100 100 100 100 100 100
OUTFLOWS
Inputs
Seed - Bean kg 27 27 27 27 27 27 27 27 27 27 27
Manure/compost ton - 1 1 1 1 1 1 1 1 1 1
Basal fertilizer (e.g. 23:21:0) kg - - - - - - - - - - -
Top dress fertilizer (e.g. CAN, Urea) kg - - - - - - - - - - -
Herbicides l - 4 4 4 4 4 4 4 4 4 4
Insecticides (e.g. Malathion, Dimethoate) kg 30 60 60 60 60 60 60 60 60 60 60
Sacks units 8 10 11 12 15 17 17 17 17 17 17
Labour
Land preparation (hired) pers-day 20 20 20 20 20 20 20 20 20 20 20
Harvesting /stocking (hired) pers-day 3 3 4 4 5 6 6 6 6 6 6
Irrigation operation and maintenance pers-day - - - - - - - - - - -
Planting pers-day 5 5 5 5 5 5 5 5 5 5 5
Manure application pers-day - 2 2 2 2 2 2 2 2 2 2
Weeding pers-day 15 10 10 10 10 10 10 10 10 10 10
Spraying pers-day - - - - - - - - - - -
Transport from field pers-day 3 3 4 4 5 6 6 6 6 6 6
Shelling/cleaning/Packing pers-day 4 10 11 12 15 17 17 17 17 17 17
Total Hired pers-day 23 23 24 24 25 26 26 26 26 26 26
Total Family pers-day 26 30 32 33 38 39 39 39 39 39 39
Financial Budget
Without
Project Y1 Y2 Y3 Y4 Y5-10 Y 6 Y 7 Y 8 Y 9 Y 10
Value of production 131600 167790 192465 207270 270725 289800 289800 289800 289800 289800 289800
Investments
Inputs
Seed Mk 25333 25333 25333 25333 25333 25333 25333 25333 25333 25333 25333
Manure/compost Mk 0 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
Basal fertilizer (e.g. 23:21:0) Mk 0 0 0 0 0 0 0 0 0 0 0
Top dress fertilizer (e.g. CAN, Urea) Mk 0 0 0 0 0 0 0 0 0 0 0
Herbicides Mk 0 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000
Insecticides (e.g. Malathion, Dimethoate) Mk 66000 132000 132000 132000 132000 132000 132000 132000 132000 132000 132000
Sacks Mk 602 767 880 948 1238 1325 1325 1325 1325 1325 1325
Labour
Hired Mk 11837 12215 12473 12628 13292 13491 13491 13491 13491 13491 13491
Family Mk 8972 10179 10826 11215 12879 13379 13379 13379 13379 13379 13379
Sub-total operating costs 112743 210495 211513 212124 214742 215529 215529 215529 215529 215529 215529
Total production costs 112743 210495 211513 212124 214742 215529 215529 215529 215529 215529 215529
Net Income 18857 -42705 -19048 -4854 55983 74271 74271 74271 74271 74271 74271
Incremental -61561 -37904 -23710 37127 55415 55415 55415 55415 55415 55415
Return on family labour day 714 -1426 -598 -147 1478 1887 1887 1887 1887 1887 1887
ItemsWith Project
ItemsWith Project
Republic of Malawi
Programme for Rural Irrigation Development
Design completion report
Appendix 10: Economic Analysis
147
Onion Malawi PRIDE final design cropbudget: Onion rainfed WOP and Onion irrigated WP
Parameters Unit WOP WP
Plot size ha 1 1
Seeds kg/ha 4 4
Manure/compost t/ha 0 2
Basal fertilizer (e.g. 23:21:0) Kg/ha 100 500
Top dress fertilizer (e.g. CAN, Urea) Kg/ha 100 300
Fungicide Kg/ha 2.0 15
Insecticide Kg/ha 2 10
Land preparation pers-day/ha 0 60
Irrigation operation and maintenance pers-day/ha 0 20
Planting & gap filling pers-day/ha 50 50
Manure and fertilizer application pers-day/ha 0 10
Weeding pers-day/ha 80 60
Spraying pers-day/ha 0 25
Harvesting /stocking pers-day/t 3 3
Transport from field pers-day/t 10 10
Shelling/cleaning/Packing pers-day/t 16 16
Irrigation land preparation pers-day/ha 0 60
Unit Without
Project Y1 Y2 Y3 Y4 Y5 Y 6 Y 7 Y 8 Y 9 Y 10
INFLOWS
production level 45% 60% 75% 90% 100% 100% 100% 100% 100%
Harvest - Onion Kg/ha 3000 3000 3240 4320 5400 6480 7200 7200 7200 7200 7200
Post-harvest loss % 10% 10% 8% 8% 8% 5% 5% 5% 5% 5% 5%
Post-harvest - Onion kg 2700 2700 2981 3974 4968 6156 6840 6840 6840 6840 6840
Autoconsumption kg 0 0 0 0 0 0 0 0 0 0 0
OUTFLOWS
Inputs
Seed kg 4 4 4 4 4 4 4 4 4 4 4
Manure/compost ton - - 2 2 2 2 2 2 2 2 2
Basal fertilizer (e.g. 23:21:0) kg 100 100 500 500 500 500 500 500 500 500 500
Top dress fertilizer (e.g. CAN, Urea) kg 100 100 300 300 300 300 300 300 300 300 300
Herbicides Mk/l 2 2 15 15 15 15 15 15 15 15 15
Insecticides (e.g. Malathion, Dimethoate) Mk/kg 2 2 10 10 10 10 10 10 10 10 10
Sacks units 54 54 60 79 99 123 137 137 137 137 137
Labour
Land preparation (hired) pers-day - - 60 60 60 60 60 60 60 60 60
Harvesting /stocking (hired) pers-day 8 8 9 12 15 18 21 21 21 21 21
Irrigation operation and maintenance pers-day - - 20 20 20 20 20 20 20 20 20
Planting pers-day 50 50 50 50 50 50 50 50 50 50 50
Manure application pers-day - - 10 10 10 10 10 10 10 10 10
Weeding pers-day 80 80 60 60 60 60 60 60 60 60 60
Spraying pers-day - - 25 25 25 25 25 25 25 25 25
Transport from field pers-day 27 27 30 40 50 62 68 68 68 68 68
Shelling/cleaning/Packing pers-day 43 43 48 64 79 98 109 109 109 109 109
Irrigation land preparation pers-day 60
Total Hired pers-day 8 8 69 72 75 78 81 81 81 81 81
Total Family pers-day 200 200 243 268 294 325 343 343 343 343 343
Financial Budget
Without
Project Y1 Y2 Y3 Y4 Y5-10 Y 6 Y 7 Y 8 Y 9 Y 10
Value of production 1620000 1620000 1788480 2384640 2980800 3693600 4104000 4104000 4104000 4104000 4104000
Investments
Inputs
Seed Mk 3800 3800 3800 3800 3800 3800 3800 3800 3800 3800 3800
Manure/compost Mk 0 0 4000 4000 4000 4000 4000 4000 4000 4000 4000
Basal fertilizer (e.g. 23:21:0) Mk 32000 32000 160000 160000 160000 160000 160000 160000 160000 160000 160000
Top dress fertilizer (e.g. CAN, Urea) Mk 30000 30000 90000 90000 90000 90000 90000 90000 90000 90000 90000
Herbicides Mk 14000 14000 105000 105000 105000 105000 105000 105000 105000 105000 105000
Insecticides (e.g. Malathion, Dimethoate) Mk 4400 4400 22000 22000 22000 22000 22000 22000 22000 22000 22000
Sacks Mk 4320 4320 4769 6359 7949 9850 10944 10944 10944 10944 10944
water fee Mk 2335 2335 2335 2335 2335 2335 2335 2335 2335
Labour
Hired Mk 4236 4236 36057 37616 39175 41039 42112 42112 42112 42112 42112
Family Mk 68058 68058 82438 91220 100002 110503 116548 116548 116548 116548 116548
Sub-total operating costs 160814 160814 510399 522330 534261 548526 556739 556739 556739 556739 556739
Total production costs 160814 160814 510399 522330 534261 548526 556739 556739 556739 556739 556739
Net Income 1459186 1459186 1278081 1862310 2446539 3145074 3547261 3547261 3547261 3547261 3547261
Incremental 0 -181105 403124 987353 1685888 2088075 2088075 2088075 2088075 2088075
Return on family labour day 7289 7289 5270 6940 8317 9675 10347 10347 10347 10347 10347
ItemsWith Project
ItemsWith Project
Republic of Malawi
Programme for Rural Irrigation Development
Design completion report
Appendix 10: Economic Analysis
148
Irish potato Malawi PRIDE final design cropbudget: Irish Potato Rainfed WOP & Irish Potato irrigated WP
Parameters Unit WOP WP /a 4 seed potatoes x 50gr X 10000 square meters
Plot size ha 1 1
Seeds\a Kg/ha 2000 4000 WP has two cycles p/y & seed replacement every 3 years, 1/3 replacement/y
Manure/compost t/ha 1 1
Basal fertilizer (e.g. 23:21:0) Kg/ha 50 100
Top dress fertilizer (e.g. CAN, Urea) Kg/ha 50 100
Fungicide Kg/ha 25 10
Insecticide li 5 2
Oxen rental (land preparation) pair day/ha 0 0
Land preparation pers-day/ha 20 20
Irrigation operation and maintenance pers-day/ha 0 20
Planting & gap filling pers-day/ha 8 8
Manure and fertilizer application pers-day/ha 0 4
Weeding pers-day/ha 20 60
Spraying pers-day/ha 10 5
Harvesting /stocking pers-day/t 1.0 2
Transport from field pers-day/t 0 10 WOP collected at field by buyer
cleaning/Packing pers-day/t 8 8
Irrigation land preparation pers-day/ha 0 60
Physical budget
Unit Without
Project Y1 Y2 Y3 Y4 Y5-10 Y 6 Y 7 Y 8 Y 9 Y 10
INFLOWS
production level 40% 50% 70% 80% 100% 100% 100% 100% 100%
Harvest - Irish Potato Kg/ha 10000 10000 9600 12000 16800 19200 24000 24000 24000 24000 24000
Post-harvest loss % 30% 30% 25% 20% 15% 10% 10% 10% 10% 10% 10%
Post-harvest - Irish Potato kg 7000 7000 7200 9600 14280 17280 21600 21600 21600 21600 21600
Autoconsumption kg 0 0 0 0 0 0 0 0 0 0 0
OUTFLOWS
Inputs
Seed kg 667 667 1,333 1,333 1,333 1,333 1,333 1,333 1,333 1,333 1,333
Manure/compost ton 1 1 1 1 1 1 1 1 1 1 1
Basal fertilizer (e.g. 23:21:0) kg 50 50 100 100 100 100 100 100 100 100 100
Top dress fertilizer (e.g. CAN, Urea) kg 50 50 100 100 100 100 100 100 100 100 100
Herbicides Mk/l 5 5 10 10 10 10 10 10 10 10 10
Insecticides (e.g. Malathion, Dimethoate) Mk/kg - - 2 2 2 2 2 2 2 2 2
Sacks units 140 140 144 192 286 346 432 432 432 432 432
Labour
Land preparation (hired) pers-day 20 20 20 20 20 20 20 20 20 20 20
Harvesting /stocking (hired) pers-day 7 7 14 19 29 35 43 43 43 43 43
Irrigation operation and maintenance pers-day - - 20 20 20 20 20 20 20 20 20
Planting pers-day 8 8 8 8 8 8 8 8 8 8 8
Manure application pers-day - - 4 4 4 4 4 4 4 4 4
Weeding pers-day 20 20 60 60 60 60 60 60 60 60 60
Spraying pers-day 10 10 5 5 5 5 5 5 5 5 5
Transport from field pers-day - - 72 96 143 173 216 216 216 216 216
Shelling/cleaning/Packing pers-day 56 56 58 77 114 138 173 173 173 173 173
Irrigation land preparation pers-day 60
Total Hired pers-day 27 27 34 39 49 55 63 63 63 63 63
Total Family pers-day 94 94 227 270 354 408 486 486 486 486 486
Financial Budget
Without
Project Y1 Y2 Y3 Y4 Y5-10 Y 6 Y 7 Y 8 Y 9 Y 10
Value of production 1680000 1680000 1728000 2304000 3427200 4147200 5184000 5184000 5184000 5184000 5184000
Investments
Inputs
Seed Mk 633333 633333 1266667 1266667 1266667 1266667 1266667 1266667 1266667 1266667 1266667
Manure/compost Mk 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
Basal fertilizer (e.g. 23:21:0) Mk 16000 16000 32000 32000 32000 32000 32000 32000 32000 32000 32000
Top dress fertilizer (e.g. CAN, Urea) Mk 15000 15000 30000 30000 30000 30000 30000 30000 30000 30000 30000
Herbicides Mk 35000 35000 70000 70000 70000 70000 70000 70000 70000 70000 70000
Insecticides (e.g. Malathion, Dimethoate) Mk 0 0 4400 4400 4400 4400 4400 4400 4400 4400 4400
Sacks Mk 11200 11200 11520 15360 22848 27648 34560 34560 34560 34560 34560
water fee Mk 2335 2335 2335 2335 2335 2335 2335 2335 2335
Labour
Hired Mk 14121 14121 17991 20502 25397 28535 33054 33054 33054 33054 33054
Family Mk 31955 31955 77033 91719 120356 138713 165148 165148 165148 165148 165148
Sub-total operating costs 758610 758610 1513946 1534982 1576002 1602298 1640163 1640163 1640163 1640163 1640163
Total production costs 758610 758610 1513946 1534982 1576002 1602298 1640163 1640163 1640163 1640163 1640163
Net Income 921390 921390 214054 769018 1851198 2544902 3543837 3543837 3543837 3543837 3543837
Incremental 0 -707336 -152372 929807 1623512 2622447 2622447 2622447 2622447 2622447
Return on family labour day 9802 9802 945 2850 5229 6237 7295 7295 7295 7295 7295
ItemsWith Project
ItemsWith Project
Republic of Malawi
Programme for Rural Irrigation Development
Design completion report
Appendix 10: Economic Analysis
149
Tomato Malawi PRIDE final design cropbudget: TOMATO irrigated
Parameters Unit WOP WP
Plot size ha 1 1
Seeds kg/ha 0.5 0.5
Manure/compost t/ha 0 1
Basal fertilizer (e.g. 23:21:0) Kg/ha 100 200
Top dress fertilizer (e.g. CAN, Urea) Kg/ha 100 200
Fungicide Kg/ha 10.0 30
Insecticide Kg/ha 6 5
Land preparation pers-day/ha 40 50
Irrigation operation and maintenance pers-day/ha 0 20
Planting & gap filling pers-day/ha 40 40
Manure and fertilizer application pers-day/ha 1 10
Weeding pers-day/ha 40 20
Spraying pers-day/ha 90 90
Harvesting /stocking pers-day/t 3 3
Transport from field pers-day/t 10 10
Shelling/cleaning/Packing pers-day/t 8 8
Irrigation land preparation pers-day/ha 0 60
Physical budget
Unit Without
Project Y1 Y2 Y3 Y4 Y5-10 Y 6 Y 7 Y 8 Y 9 Y 10
INFLOWS
production level 50% 60% 70% 90% 100% 100% 100% 100% 100%
Harvest - Tomato Kg/ha 1,000 1000 1000 1200 1400 1800 2000 2000 2000 2000 2000
Post-harvest loss % 20% 20% 15% 12% 10% 10% 10% 10% 10% 10% 10%
Post-harvest - Tomato kg 800 800 850 1056 1260 1620 1800 1800 1800 1800 1800
Autoconsumption kg 0 0 0 0 0 0 0 0 0 0 0
OUTFLOWS
Inputs
Seed kg 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5
Manure/compost ton - - 1 1 1 1 1 1 1 1 1
Basal fertilizer (e.g. 23:21:0) kg 100 100 200 200 200 200 200 200 200 200 200
Top dress fertilizer (e.g. CAN, Urea) kg 100 100 200 200 200 200 200 200 200 200 200
Herbicides Mk/l 10 10 30 30 30 30 30 30 30 30 30
Insecticides (e.g. Malathion, Dimethoate) Mk/kg 6 6 5 5 5 5 5 5 5 5 5
Sacks units 16 16 17 21 25 32 36 36 36 36 36
Labour
Land preparation (hired) pers-day 40 40 50 50 50 50 50 50 50 50 50
Harvesting /stocking (hired) pers-day 2 2 3 3 4 5 5 5 5 5 5
Irrigation operation and maintenance pers-day - - 20 20 20 20 20 20 20 20 20
Planting pers-day 40 40 40 40 40 40 40 40 40 40 40
Manure application pers-day 1 1 10 10 10 10 10 10 10 10 10
Weeding pers-day 40 40 20 20 20 20 20 20 20 20 20
Spraying pers-day 90 90 90 90 90 90 90 90 90 90 90
Transport from field pers-day 8 8 9 11 13 16 18 18 18 18 18
Shelling/cleaning/Packing pers-day 6 6 7 8 10 13 14 14 14 14 14
Irrigation land preparation pers-day 0 60
Total Hired pers-day 42 42 53 53 54 55 55 55 55 55 55
Total Family pers-day 185 185 195 199 203 209 212 212 212 212 212
Financial Budget
Without
Project Y1 Y2 Y3 Y4 Y5-10 Y 6 Y 7 Y 8 Y 9 Y 10
Value of production 608000 608000 646000 802560 957600 1231200 1368000 1368000 1368000 1368000 1368000
Investments
Inputs
Seed Mk 475 475 475 475 475 475 475 475 475 475 475
Manure/compost Mk 0 0 2000 2000 2000 2000 2000 2000 2000 2000 2000
Basal fertilizer (e.g. 23:21:0) Mk 32000 32000 64000 64000 64000 64000 64000 64000 64000 64000 64000
Top dress fertilizer (e.g. CAN, Urea) Mk 30000 30000 60000 60000 60000 60000 60000 60000 60000 60000 60000
Herbicides Mk 70000 70000 210000 210000 210000 210000 210000 210000 210000 210000 210000
Insecticides (e.g. Malathion, Dimethoate) Mk 13200 13200 11000 11000 11000 11000 11000 11000 11000 11000 11000
Sacks Mk 1280 1280 1360 1690 2016 2592 2880 2880 2880 2880 2880
water fee Mk 2335 2335 2335 2335 2335 2335 2335 2335 2335
Labour
Hired Mk 22175 22175 27484 27807 28127 28692 28974 28974 28974 28974 28974
Family Mk 63027 63027 66392 67653 68901 71104 72205 72205 72205 72205 72205
Sub-total operating costs 232157 232157 445046 446959 448854 452198 453870 453870 453870 453870 453870
Total production costs 232157 232157 445046 446959 448854 452198 453870 453870 453870 453870 453870
Net Income 375843 375843 200954 355601 508746 779002 914130 914130 914130 914130 914130
Incremental 0 -174889 -20242 132903 403159 538287 538287 538287 538287 538287
Return on family labour day 2027 2027 1029 1787 2510 3724 4304 4304 4304 4304 4304
ItemsWith Project
ItemsWith Project
Republic of Malawi
Programme for Rural Irrigation Development
Design completion report
Appendix 10: Economic Analysis
150
Cabbage Malawi PRIDE final design cropbudget: GABBAGE irrigated
Parameters Unit WOP WP
Plot size ha 0 1
Seeds kg/ha 0 2
Manure/compost t/ha 0 5
Basal fertilizer (e.g. 23:21:0) Kg/ha 0 650
Top dress fertilizer (e.g. CAN, Urea) Kg/ha 0 200
Fungicide Kg/ha 0 10
Insecticide Kg/ha 0 5
Oxen rental (land preparation) pair day/ha 0 0
Land preparation pers-day/ha 0 70
Irrigation operation and maintenance pers-day/ha 0 20
Planting & gap filling pers-day/ha 0 30
Manure and fertilizer application pers-day/ha 0 10
Weeding pers-day/ha 0 60
Spraying pers-day/ha 0 20
Harvesting /stocking pers-day/t 0 3
Transport from field pers-day/t 0 10
Shelling/cleaning/Packing pers-day/t 0 16
Irrigation land preparation pers-day/ha 0 60
Physical budget
Unit Without
Project Y1 Y2 Y3 Y4 Y5-10 Y 6 Y 7 Y 8 Y 9 Y 10
INFLOWS
production level 0% 25% 50% 65% 85% 100% 100% 100% 100% 100%
Harvest - Gabbage Kg/ha 0 1375 2750 3575 4675 5500 5500 5500 5500 5500
Post-harvest loss % 0% 20% 15% 12% 10% 8% 8% 8% 8% 8% 8%
Post-harvest - Gabbage kg 0 0 1169 2420 3218 4301 5060 5060 5060 5060 5060
Autoconsumption kg 0 0 0 0 0 0 0 0 0 0 0
OUTFLOWS
Inputs
Seed kg - - 2 2 2 2 2 2 2 2 2
Manure/compost ton - - 5 5 5 5 5 5 5 5 5
Basal fertilizer (e.g. 23:21:0) kg - - 650 650 650 650 650 650 650 650 650
Top dress fertilizer (e.g. CAN, Urea) kg - - 200 200 200 200 200 200 200 200 200
Herbicides Mk/l - - 10 10 10 10 10 10 10 10 10
Insecticides (e.g. Malathion, Dimethoate) Mk/kg - - 5 5 5 5 5 5 5 5 5
Sacks units - - 23 48 64 86 101 101 101 101 101
Labour
Land preparation (hired) pers-day - - 70 70 70 70 70 70 70 70 70
Harvesting /stocking (hired) pers-day - - 7 7 10 13 15 15 15 15 15
Irrigation operation and maintenance pers-day - - 20 20 20 20 20 20 20 20 20
Planting pers-day - - 30 30 30 30 30 30 30 30 30
Manure application pers-day - - 10 10 10 10 10 10 10 10 10
Weeding pers-day - - 60 60 60 60 60 60 60 60 60
Spraying pers-day - - 20 20 20 20 20 20 20 20 20
Transport from field pers-day - - 12 24 32 43 51 51 51 51 51
Shelling/cleaning/Packing pers-day - - 19 39 51 69 81 81 81 81 81
Irrigation land preparation pers-day - - 60
Total Hired pers-day - - 77 77 80 83 85 85 85 85 85
Total Family pers-day - - 170 203 224 252 272 272 272 272 272
Financial Budget
Without
Project Y1 Y2 Y3 Y4 Y5-10 Y 6 Y 7 Y 8 Y 9 Y 10
Value of production 0 0 233750 484000 643500 860200 1012000 1012000 1012000 1012000 1012000
Investments
Inputs
Seed Mk 0 0 1900 1900 1900 1900 1900 1900 1900 1900 1900
Manure/compost Mk 0 0 10000 10000 10000 10000 10000 10000 10000 10000 10000
Basal fertilizer (e.g. 23:21:0) Mk 0 0 208000 208000 208000 208000 208000 208000 208000 208000 208000
Top dress fertilizer (e.g. CAN, Urea) Mk 0 0 60000 60000 60000 60000 60000 60000 60000 60000 60000
Herbicides Mk 0 0 70000 70000 70000 70000 70000 70000 70000 70000 70000
Insecticides (e.g. Malathion, Dimethoate) Mk 0 0 11000 11000 11000 11000 11000 11000 11000 11000 11000
Sacks Mk 0 0 1870 3872 5148 6882 8096 8096 8096 8096 8096
water fee Mk 2335 2335 2335 2335 2335 2335 2335 2335 2335
Labour
Hired Mk 0 0 40407 40407 41658 43358 44549 44549 44549 44549 44549
Family Mk 0 0 57923 68983 76032 85608 92317 92317 92317 92317 92317
Sub-total operating costs 0 0 463435 476497 486073 499083 508197 508197 508197 508197 508197
Total production costs 0 0 463435 476497 486073 499083 508197 508197 508197 508197 508197
Net Income 0 0 -229685 7503 157427 361117 503803 503803 503803 503803 503803
Incremental 0 -229685 7503 157427 361117 503803 503803 503803 503803 503803
Return on family labour day -1348 37 704 1434 1855 1855 1855 1855 1855
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ItemsWith Project
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Design completion report
Appendix 10: Economic Analysis
151
ANNEX 2: ECONOMIC ANALYSIS
Table 1: Project Economic Analysis - Full Project Cost Annex 2 Economic Analysis
Table 1: Project Economic Analysis - Full Project Cost
(constant 2015 values)
(US 000) PY1 PY2 PY3 PY4 PY5 PY6 PY7 PY8-20 PY9 PY10-15 PY11 P12 PY13 PY14 PY15 PY16 PY17 PY18
Total Programme Net Benefits -195 -445 -54 1443 4540 8563 12964 16626 19275 20674 21421 21609 21609 21609 21609 21609 21609 21609
Programme Costs
Investment Costs 4635 11953 13926 9325 6007 4812 1249 0 0 0 0 0 0 0 0 0 0 0
Recurrent Costs 1186 1320 1309 1285 1246 1192 551 551 551 551 551 551 551 551 551 551 551 551
Total Programme Costs 5821 13274 15237 10613 7257 6009 1806 551 551 551 551 556 551 557 551 551 551 556
Total Project Incremental Net Benefits -6016 -13718 -15291 -9169 -2717 2554 11158 16075 18724 20123 20870 21053 21058 21052 21058 21058 21058 21053
IRR 20.0%
NPV @12% (US 000) 29,755 Table 2: Project Economic Analysis at Direct Project Cost Table 2: Project Economic Analysis at Direct Project Cost
(constant 2015 values)
(US 000) PY1 PY2 PY3 PY4 PY5 PY6 PY7 PY8-20 PY9 PY10-15 PY11 P12 PY13 PY14 PY15 PY16 PY17 PY18
Total Programme Net Benefits -195 -445 -54 1443 4540 8563 12964 16626 19275 20674 21421 21609 21609 21609 21609 21609 21609 21609
Programme Costs
Investment Costs 3807 9537 11582 9310 5852 4885 1113 0 0 0 0 0 0 0 0 0 0 0
Recurrent Costs 463 570 557 549 506 464 162 162 162 162 162 162 162 162 162 162 162 162
Total Programme Costs 4270 10108 12141 9862 6362 5354 1281 162 162 162 162 162 162 162 162 162 162 162
Total Project Incremental Net Benefits -4464 -10552 -12195 -8418 -1823 3208 11683 16463 19112 20511 21258 21447 21447 21447 21447 21447 21447 21447
IRR 23.8%
NPV @12% (US 000) 38,555
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Table 3. Aggregated production benefits Table 3. Aggregated production benefits Mk:USD 440
WOP
Project
WP -Full
DevelopIncremental
Improved Agriculture practices
Rain-fed only Farm 1 51279 165547 114268 1600 415521
Irrigation development
Irrigated & rain-fed Farm 2 51279 637924 586645 15750 20999232
Average 51279 401736 350457 8675
Phasing of beneficiaries
Net Benefits per year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Y9 Y10 Y11 Y12 Y13 Y14
Incremental NB FARM 1 in Mk -43800 -80641 -38602 27186 70175 114268 114268 114268 114268 114268 114268 114268 114268 114268
Incremental NB FARM 1 in USD -100 -183 -88 62 159 260 260 260 260 260 260 260 260 260
no.beneficiaries 80 320 320 320 160 80 80 0 0 0 0
1 -7964 -14662 -7018 4943 12759 20776 20776 20776 20776 20776 20776 20776 20776 20776
2 -31855 -58648 -28074 19771 51036 83104 83104 83104 83104 83104 83104 83104 83104
3 -31855 -58648 -28074 19771 51036 83104 83104 83104 83104 83104 83104 83104
4 -31855 -58648 -28074 19771 51036 83104 83104 83104 83104 83104 83104
5 -15927 -29324 -14037 9886 25518 41552 41552 41552 41552 41552
6 -7964 -14662 -7018 4943 12759 20776 20776 20776 20776
7 -7964 -14662 -7018 4943 12759 20776 20776 20776
Sub total in USD '000 -8 -47 -98 -114 -70 26 138 226 294 329 345 353 353 353
Incremental NB FARM 2 in Mk -60283 13256 136898 310502 452938 586645 586645 586645 586645 586645 586645 586645 586645 586645
Incremental NB FARM 2 in USD -137 30 311 706 1029 1333 1333 1333 1333 1333 1333 1333 1333 1333
No. Benficiaries 1362 3206 3482 3699 1825 1775 593 0 0 0 0 0 0 0
1 -186659 41047 423889 961437 1402474 1816485 1816485 1816485 1816485 1816485 1816485 1816485 1816485 1816485
2 -439223 96587 997444 2262334 3300127 4274327 4274327 4274327 4274327 4274327 4274327 4274327 4274327
3 -477065 104908 1083380 2457250 3584455 4642589 4642589 4642589 4642589 4642589 4642589 4642589
4 -506829 111453 1150971 2610554 3808085 4932234 4932234 4932234 4932234 4932234 4932234
5 -250013 54979 567761 1287757 1878485 2433015 2433015 2433015 2433015 2433015
6 -243210 53483 552311 1252716 1827369 2366810 2366810 2366810 2366810
7 -81212 17859 184426 418302 610188 790316 790316 790316
Sub total in USD '000 -187 -398 43 1557 4610 8537 12826 16399 18981 20344 21076 21256 21256 21256
TOTAL in USD'000 -195 -445 -54 1443 4540 8563 12964 16626 19275 20674 21421 21609 21609 21609
ModelAggregated
Numbers
Annual Net Benefits-before financing
Economic
Aggregated
Annual Net
benefits,
USD
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Table 4: number of beneficiaries
Annex 2
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Table 4: number of beneficiaries
Items target HH Y 1 Y 2 Y 3 Y 4 Y 5 Y6 Y7 Total
FARM 1 rain-fed only 2000
adoption rate 80% 5% 20% 20% 20% 10% 5% 5%
no. of HH 1600 80 320 320 320 160 80 80
cummulative no. of HH 320 640 960 1280 1440 1520 1600
FARM 2 rain- fed & irrigation 17500
lot 1 in ha 439 1033 725 2197
lot 2 in ha 397 1192 397 1986
lot 3 in ha 191 572 191 954
Total 439 1033 1122 1192 588 572 191
adoption rate 90% 5137
no. of HH/a 15750 1.362 3.206 3.482 3.699 1.825 1.775 593 15.942
cummulative no. of HH 1.362 4.568 8.050 11.750 13.574 15.350 15.942
Total no. of HH 1.442 3.526 3.802 4.019 1.985 1.855 673
Total cummulative no. of HH 17350 1.442 4.968 8.770 12.790 14.774 16.630 17.302
/a Assumed that each household gets 0.3ha irrigated
Project Year
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Appendix 11: Draft programme implementation manual
Table of Contents23
ABBREVIATIONS AND ACRONYMS Error! Bookmark not defined.
I. INTRODUCTION Error! Bookmark not defined.
A. Purpose of Programme Implementation Manual Error! Bookmark not defined.
B. PRIDE in Summary Error! Bookmark not defined.
C. Readiness for Implementation Error! Bookmark not defined.
II. IMPLEMENTATION AND INSTITUTIONAL ARRANGEMENTSError! Bookmark not defined.
A. Programme Governance Error! Bookmark not defined.
B. Programme Coordination Error! Bookmark not defined.
C. Implementation Arrangements Error! Bookmark not defined.
III. MONITORING & EVALUATION, PLANNING AND KNOWLEDGE MANAGEMENT Error!
Bookmark not defined.
A. Background Error! Bookmark not defined.
B. Results and Impact Management System (RIMS) Error! Bookmark not defined.
C. PRIDE Management Information System Error! Bookmark not defined.
D. Reporting Error! Bookmark not defined.
E. Annual Work Planning and Budgeting Error! Bookmark not defined.
F. Knowledge Management Error! Bookmark not defined.
IV. FINANCIAL MANAGEMENT AND ACCOUNTING Error! Bookmark not defined.
A. General Institutional Set-Up and Governing RegulationsError! Bookmark not defined.
B. Grant and Loan Administration Arrangements Error! Bookmark not defined.
C. Flow of Funds Error! Bookmark not defined.
D. Accounting System Error! Bookmark not defined.
E. Auditing Error! Bookmark not defined.
V. PRIDE PROCUREMENT Error! Bookmark not defined.
A. PRIDE Procurement Ceilings and Legal and Regulatory FrameworkError! Bookmark not defined.
B. PRIDE Procurement Roles and Responsibilities Error! Bookmark not defined.
C. Procurement Methods Error! Bookmark not defined.
D. Procurement Processes Error! Bookmark not defined.
23
Draft PIM included as a separate document.
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Appendix 12: Compliance with IFAD policies
Overview
1. This appendix is based on IFAD’s Strategic Framework for 2011-15 and a range of policy and strategy documents covering targeting, gender, rural finance, private sector, rural enterprise, environment and climate change, knowledge management and SWAPs. The contents of the appendix reflect IFAD’s: (i) assessment of the fundamental causes of rural poverty; (ii) development and strategic objectives and operational outcomes, outputs and inputs; and (iii) principles of engagement. This discussion of PRIDE’s adherence to IFAD’s policies is presented in tabular format and comments are provided on the relevant design features of the Programme.
IFAD’ strategic framework
2. The Strategic Framework goal is that Rural communities are resilient to food insecurity-, climate change- and economic risks. The principles of engagement and how PRIDE is responding is summarised below:
Principles of
Engagement
Programme Response
A differentiated approach based on country context
Working mainly at decentralised level within government systems and with private sector and NGOs with a strong focus on building capacity in smallholder farmers. PRIDE implementation is fully integrated within the existing Government institutional, strategy and policy framework. ASAP funds will be used to mitigate and respond to climate-change induced natural disasters and to build resilience of the beneficiaries.
Targeting Targeting smallholder farmers ensuring equitable participation and receipt of benefits by men, women and youths. Aiming to get 17,000 households sustainably above the poverty line. PRIDE’s targeting mechanism will draw on IRLADP lessons and ensure equitable participation including in allocation of irrigated land and provision of other services such as training.
Supporting the empowerment of poor rural people
PRIDE will provide support farmer to form (i) WUAs; (ii) producer groups with forward and backward linkages to input suppliers, traders, and agribusiness enterprises; and (iii) conservation groups to manage and benefit from protective measures in the catchment. The capacity building and training will develop the skills and confidence of beneficiaries through Farmer Field Schools and Farmer Business Schools.
Promoting gender equality and women’s empowerment
PRIDE will mainstream female and youth involvement in all activities to ensure equitable involvement and opportunity to benefit. The household mentoring approach used by IRLADP for enhanced gender equality and women’s empowerment. PRIDE’s logical framework has included indicators which will help to collect gender, age and wealth class disaggregated data to track who at implementation is actually participating and benefitting according to these categories.
Creating viable opportunities for rural youth
PRIDE will implement the National Youth Policy through activities that modernises agriculture through the incorporation of ICT and other modern technologies and tools to make agriculture attractive to the youth; the promotion, provision and dissemination of youth-tailored information and provision of support for advanced training targeting out of school youth for increased agricultural production, agro-processing and marketing.
Innovation, learning and scaling-up
To achieve greater synergies within Malawi, IFAD will align RLEEP, SAPP and PRIDE into a harmonised country portfolio. SAPP will support the adoption of GAPs by smallholder farmers participating in PRIDE and RLEEP will facilitate value chain analysis and development of market linkages for commodities being grown in response to demand. PRIDE will scale-up by (i) building on the successes achieved by the IRLADP including adopting innovative approaches for promoting equitable land access; and (ii) through partnerships (see below).
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Principles of
Engagement
Programme Response
Effective partnerships and resource mobilisation
Allocating funds to support the MICF funded by DFID and managed by UNDP for linking small holder farmers to the value chain. Various opportunities to engage with (inter-) national knowledge centres on identification and adaptation of Good Agricultural Practices; to be identified and formalised during programme implementation.
Sustainability The economic and financial sustainability of schemes is a key selection criterion for PRIDE. Feasibility studies will need to indicate the economic viability of each scheme prior to being selected for implementation.
To achieve commercial sustainability PRIDE will provide support for farmer groups to form: (i) viable WUAs operating and managing their scheme with no external support; and (ii) producer groups to build forward and backward linkages with input suppliers, traders, and agribusiness enterprises to achieve good prices for their high value crops.
To achieve institutional sustainability PRIDE implementation will be fully integrated within the existing Government institutional, strategy and policy framework. PRIDE’s commercial approach to irrigated agriculture should enable farmers to earn sufficient incomes allowing them to support the operation of schemes and to reinvest surplus in subsequent cropping cycles.
To achieve environmental sustainability PRIDE will share benefits from investments in catchment integrity with conservation groups. These maintain the investments in return for usufruct of the areas protected.
3. The areas of thematic focus of the Strategic Framework and how PRIDE is responding is summarised below:
Areas of
Thematic Focus
Programme Response
Natural resources (land, water, energy and biodiversity)
The PRIDE PDO is sustainably enhanced production by smallholder farmers for household nutritional demands and for income generation from viable markets. The emphasis of PRIDE is on climate-smart resource management systems (repair and prevent land degradation, storage of water, irrigation schemes) and climate-smart good agricultural practices (use of weather information, conservation agriculture, optimised cropping- and irrigation interactions, etc.).
Climate change adaptation and mitigation
ASAP funds through IFAD support climate change adaptation measures and practical land degradation approaches in each scheme cluster area. PRIDE will invest in inputs, such as seed varieties that are tolerant to drought, improved agricultural practices, integrated soil fertility management, watershed management and improved access to climate information to complement the investment in irrigation systems. This will result in better climate risk management, sustaining and often increasing productivity as well as reversing land degradation. ASAP funds are also dedicated to the dissemination of improved cooking stoves, to reduce a/o the pressure on fuelwood sources.
Improved agricultural technologies and effective production services
SAPP – and others – experiences will be used to support identification and adaptation of climate-resilient GAPs by smallholder farmers participating in PRIDE. SAPP will support service providers with knowledge, information, innovations and skills in delivery of climate-smart GAPs to smallholder farmers.
A broad range of inclusive financial services
Rural micro-credit services for smallholders – often group-based – are available though at substantial interest rates. PRIDE provides starter packages for demonstrations of tested GAPS and promotes rotation of the lead farmer role within the FFSs it supports. The pace with which benefits are generated in the farm models reflects the gradual build-up of smallholder capacities to forward surplus from one season into investments in the next.
Integration of poor rural people within value chains
PRIDE will use experience from RLEEP to develop upstream and downstream commercial linkages in value chains. Development of producer groups and commodity platforms – and linkages between the two – are pursued. PRIDE will also partner with the UNDP-managed MICF.
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Areas of
Thematic Focus
Programme Response
Rural enterprise development and non-farm employment opportunities
PRIDE organises Farmer Business Schools and promotes farmers to form (commodity-based) producer groups, which can jointly bulk, grade, transport and sell their produce. Some investments will be made in equipment and facilities for post-harvest management, alongside training on good practices. Viable business models will be developed for improved cooking stoves and for traction services, especially for ripping hard pan layers.
Technical and vocational skills development
WUAs will be trained in construction supervision and operation & maintenance of schemes and some smallholder farmers will work with the construction contractors through which they will develop technical and vocational skills.
Support to rural producers organisations
PRIDE will apply RLEEP experience to support activities in the priority commodities. Commodity platforms will be assisted to address deficiencies in the enabling environment for agribusiness development. Farmer Business Schools and producer groups will be assisted to establish market linkages, including securing contract farming arrangements.
Other elements of IFAD’s policy framework
Policy Programme Response
Targeting policy The Programme design (see appendix 2) provides a detailed analysis of poverty, gender and targeting. The targeting strategy defines mechanisms to ensure that the targeted poor men and women actually participate in and benefit from the planned interventions. These include: (i) geographic targeting measures; (ii) enabling measures; (iii) empowerment and capacity building measures; (iv) self-targeting measures; (v) direct targeting measures; and (vi) procedural measures.
Gender policy
Rural finance policy
Where relevant, PRIDE will promote micro-finance institution(s) and relevant specialised funds to facilitate the adoption of agricultural practices that require access to financial services.
Improving Access to Land and Tenure Security
PRIDE will be implemented in compliance to IFAD’s Policy on Improving Access to Land and Tenure Security, the Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests and the Framework and Guidelines for Land Policy in Africa. Before supporting any development intervention that might affect the land access and use rights of communities, PRIDE will ensure that their free, prior and informed consent has been solicited through inclusive consultations based on full disclosure of the intent and scope of the activities planned and their implications. Furthermore, irrigation development effectively adds value to land. Under such circumstances, there may be the risk that the rural poor, especially women, may lose out to more powerful groups. PRIDE will be designed, therefore, in such a way that they ‘do no harm’ to the land tenure interests of the rural poor, especially women and other vulnerable groups. Tracer studies will be undertaken to monitor this.
Private sector and rural enterprise policy
PRIDE will facilitate the private sector – through commodity platforms – to improve the integration of smallholder agriculture into the value chains for these commodities; thereby creating benefits to smallholder farmers. RLEEP experience provides a starting point.
Environment and climate change
PRIDE is expected to result in positive environmental outcomes (see ESRN below) associated with works against land degradation, the capture of surface water and the introduction of GAPs, including conservation agriculture.
The Programme will also contribute to climate change adaptation by introducing irrigated agriculture and by promoting GAPs which both help enhance resilience to climate extremes, especially droughts; and which promote carbon sequestration in soil organic matter.
Knowledge management
PRIDE will identify and document lessons learned and share this process with the smallholder agriculture sector. To do so, PRIDE employs an interactive approach, which promotes learning at community, regional and national levels.
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SWAp policy PRIDE is consistent with IFAD’s policy of engaging with SWAps where Governments are developing such sector-wide programmes. IFAD aims to add value to SWAps to make them more effective in rural policy reduction; and to participate in pooled funding arrangement where fiduciary and M&E systems are sufficiently well developed. If this is not the case IFAD will provide support the SWAps via programme funding using its own systems and procedures, while at the same time supporting the development of Government fiduciary arrangements.
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Appendix 13: Contents of the Programme Life File
PRIOR DOCUMENTS
COSOP
COSOP Mid-Term Review
Programme Design Report – First Draft
WORKING PAPERS (as prepared by the 1st final design mission)
1. Water Users Associations 2. Land and Water Governance 3. Poverty Targeting and Gender 4. Climate Change Adaptation 5. M&E, Knowledge Management and Communications 6. Environment and Social Impact Assessment 7. Private Sector Engagement 8. Environmental and Social Review Note November 2014 Update 9. Irrigation
Draft Programme Implementation Manual (TOC in PDR appendix 11)
ENVIRONMENTAL AND SOCIAL SAFEGUARDS
SECAP Review Note
Environmental and Social Management Framework
Resettlement Action Framework REFERENCE DOCUMENTS
Malawi Growth and Development Strategy II
Malawi Country Strategic Opportunity Programme (COSOP) 2010-2015
Government Of Malawi Economic Recovery Plan 2012
the G8 New Alliance for Food Security and Nutrition in Malawi (in the Comprehensive Africa Agriculture Development Programme (CAADP) Framework
Agricultural Sector Wide Approach (ASWAp) MOAFS 2010
Pre-Design Framework Report, list of reports for reference and the logical framework table.
National Adaptation Plan of Action GOM 2006
Capacity Needs Assessment for Climate Change Management Structures GOM June 2011
Sector Policies Response to Climate Change in Malawi GOM September 2011
National Climate Change Investment Plan 2012 Environmental Affairs Dept Ministry of Environment and Climate Change Management
Current Hazard Mapping Capacities and Effectiveness of Scenario-based Tools for Long Term Planning Mechanisms GOM June 2012
USAIDs Climate Vulnerability Analyses for Malawi September 2013
COSOP 2009
MTR of COSOP
IRLADP Detailed design documents of all of their schemes
IRLADP Project Appraisal Document 2005
IRLADP Impact Assessment Study and other documents July 2013
IRLADP Documenting Lessons Learnt Final Report October 2014
IRLADP WUA Formation Guidelines, constitution, activity guidelines, irrigation scheme management guidelines regulation, WUA regulations, WUA training modules
IRLADP, Independent Endline Survey And Impact Evaluation, Draft, World Bank, 2015
Smallholder Flood Plains Development Programme Water Resources Assessment Study 2000
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MOWDI 2011 and 2012 Sector Performance Report prepared for the Annual joint sector review 2012 and December 2013
Climate Adaptation for Rural Livelihood and Agriculture (CARLA) AFDB Appraisal Report October 2011
Global Agricultural and Food Security Programme Support to ASWAp MOWDI March 2012
Climate Risk and Vulnerability A Handbook for Southern Africa 2011
Development of Irrigation Master plan and Investment Framework SMEC November 2013
Irrigation Schemes Appraisal Methodology SMEC July 2014
Report of the Law Commission on Review of Land Related Laws GOM 2013
RIDP II GOPA/Aurecon Detailed Design Report for South Rukuru Irrigation Scheme August 2014
RIDP II GOPA/Aurecon Detailed Design Report for Bwanje Dam Project July 2014.
GOM Irrigation Master Plan and Investment Framework
MOAIWD, Malawi National Guidelines: Integrated Catchment Management and Rural Infrastructure, Volumes 1 and 2, Draft, 2015
Government of the Republic of Malawi, Ministry of Irrigation and Water Development, Second National Water Development Project (NWDP II), Water Resources Investment Strategy, Component 1 – Water Resources Assessment; draft report, 2015
Yaron, G. et al, Economic Valuation of Sustainable Natural Resource Use in Malawi, January 2011
MISSION DOCUMENTS
Terms of Reference for Pre-Design Mission
Terms of Reference for Design Mission
Aide Memoire of Pre-Design Mission
Aide Memoire of Design Mission (January 2014)
Aide Memoire of Design Mission (July 2014)
Aide Memoire of Final Design Mission (November 2014)
Aide Memoire of the second Final Design Mission (April 2015)
IFAD REVIEW DOCUMENTS
CPMT Minutes
QE Minutes
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Appendix 14: Climate change adaptation and climate-smart agriculture
Current Climate
1. Current Climate. Malawi’s climate is predominantly influenced by Lake Malawi, the largest
national water body and the accentuated topography resulting in classifications from semi-arid (Shire
Valley and parts along the Lakeshore Plain) to sub-humid (high altitude plateaus and hilly areas).
Based on its geographical position, Malawi has a sub-tropical climate with two distinct seasons; a long
rainy season (usually from November to April), and a dry season (May to October). Malawi also
straddles equatorial east Africa and subtropical southern Africa, which are dominant modes of climate
variability. This potentially results in separate climate drivers influencing the northern and southern
parts of the country (Behera et al., 2005; Pohl et al., 2007). The rainfall patterns are influenced by the
Inter- Tropical Convergence Zone and the Congo Air Mass. Other factors influencing the climate of
Malawi include anti-cyclones, easterly waves, occasional tropical cyclones as well as orographic and
topographic effects.
2. Malawi Meteorological Services records depict mean annual temperatures ranging from below
12°C (minimum) in the plateaus and hills to above 32°C in the lowlands (maximum) and mean annual
rainfall ranging from 725mm in some low-lying areas, to above 2,500mm in high altitude areas. The
humidity ranges from 50% in the dry months to 87% in the wet months. Overall total rainfall in Malawi
reveals a high degree of inter- and intra-seasonal variability. Standardised rainfall anomalies for the
November to April period demonstrate very high inter-annual variability albeit the anomaly signal in
some years varies from one station to another (USAID Vulnerability Assessment, 2013).
3. The inter and intra-seasonal variability in rainfall as well as declining soil fertility is already
impacting the agriculture sector in Malawi. Smallholders farmers will be most affected by the
increasing variability in the rainfall and other climatic changes projected for Malawi. The excessive
rains in early 2015, and the subsequent flooding in southern Malawi, followed by a long dry spell at
towards the end of the rainy seasons, has provided a preview of what this increased variability could
look like.
Climate trends and projections
4. The UNDP Country Climate Change Profile for Malawi showed an increase in the number of
hot days and nights by 8.3% and 11.1% respectively on an annual basis between 1960 and 2003
(McSweeney et al., 2008). The summer months (DJF) have an even more marked increase of 12.7%
and 17.6% respectively. The number of cold days and nights also showed an annual decrease over
the same period, by 4.3% to 7.2%. Another earlier study concluded that the occurrence of extreme
weather events has become more frequent over the last two previous decades (Munthali and
Mwatalirwa, 2007). The study found that maximum and in particular minimum temperatures show an
increasing trend over the last 40 years which is concurrent with figure 1 below. However, no
consistent patterns in rainfall were found, with large variations between seasons and sites.
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Source: UNDP Climate Change Country Profiles
5. Apart from the slow onset events of temperature and rainfall variations. Malawi also
experiences climatic shock events. The table below provides details of natural disaster occurrence in
Malawi since 1900, with droughts being more prevalent and affecting larger numbers of the
population. The 2015 floods – not included in the below table – displaced an estimated 200,000
people and killed 176.
Top 10 Natural Disasters in Malawi (1900 – 2013) sorted by number of people affected24
Disaster Date No Total Affected
Drought Apr-1992 7,000,000
Drought Oct-2005 5,100,000
Drought Feb-2002 2,829,435
Drought Feb-1990 2,800,000
Drought Aug-2012 1,900,000
Drought 1987 1,429,267
Drought Oct-2007 520,000
Flood Jan-2001 500,000
Flood 18-Feb-1997 400,000
Flood 28-Dec-2002 246,340
6. Temperature: Most model simulations predict increases in temperature with the mean growing-
season temperatures increasing up to 2.70C by 2075. Using two different emission scenarios, for the
two decades up to 2040, monthly maximum mean temperatures show the lowest increases likely to
occur during the months of January and February, with changes of between of 0.6°C to 1.5°C (Malawi
Climate Change Vulnerability Assessment USAID, 2013). The highest increases were in October and
November over ranges of between 0.8°C and 2°C. For the subsequent two decades, i.e. up to 2060,
the months of October and November were projected to be warmer, with an increase of between
1.75°C to 2.5°C. Apart from the increasing temperatures, more days of extreme temperatures are
projected with longer duration of heat spells during these periods. A vulnerability and adaptability
assessment conducted in 2001, using four General Circulation Models (GCM), predicted that
temperatures in southern and central Malawi will increase by 1o, 2o and 4o C by the years 2020,
2075 and 2100, respectively (Phiri et al. 2005). A separate study that drew on 15 models to analyse
three SRES emission scenarios (Nakicenovic et al., 2000) A1B, A2 and B1 revealed that by the 2060s
24 Created on: Oct-15-2013. No update available in April 2015. Data version: v12.07 www.emdat.be
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the mean annual temperature in Malawi would increase by 1.10 to 3.30 C and by the 2090’s by 1.50
to 5.00C.
7. Precipitation: Regional Climate Models, show a decrease in early season rainfall (October to
December) and an increase in late season (January to March) rainfall over the eastern parts of
southern Africa, which includes Malawi (Tadross et al. 2005). In terms of national projections based on
the functional weather stations, for 2020-2040 a general likelihood of later seasonal onset is affirmed.
Malawi may also experience more intense rainfall during the months of December through February,
followed by an early cessation based on the high emission scenario. These projections in rainfall
changes also hold for 2040-2060 when compared to the historical climate trends analysis. The GCM
study also predicted that rainfall will increase by between 2% and 8% in the southern and central
regions between 2020 and 2100 (Phiri et al. 2005). However, given the current inter-annual variations,
changes in mean annual rainfall may be less visible.
8. The rainfall projections by the 2060s show great variability (-13% to +32%), however the trend
appears to be to drier dry seasons (June to November) and wetter rain seasons (December to May).
The wet season estimates varied between -8% to +25% for December to February and -17% to +99%
for March to May. An increase of up to 19% in the proportion of heavy rainfall events mainly occurring
in the wet season, December to May was consistently predicted under the higher emissions
conditions the models. The potential changes in the effects of El Nino events, proved more difficult
with models being inconsistent in their predictions. This lack of agreement contributes to the
uncertainly in the climate change predictions. The uncertainty is also echoed in the Country Climate
Profile, which concluded that annual rainfall was strongly variable in Malawi and no statistical trends
were found over 1960-2006, nor were any found in the extreme indices using daily observations.
9. Malawi’s Second National Communication to the UNFCCC (2009), which used historic
temperature and rainfall data with five models to predict future climate, indicates a decreasing trend
for monthly rainfall over time. The highest percentage decrease is predicted for the year 2020 based
on sampled stations. The climate projections for the period 2010-2075 indicate that mean cumulative
annual rainfall may decrease by 0.7% to 4.8% compared to the 30-year mean. These observations
reiterate the findings of the Vulnerability and Adaptation Assessments (2003) indicating that Malawi
will continue to experience climatic hazards, such as intense rainfall, floods, seasonal droughts, multi-
year droughts, dry spells, cold spells, strong winds, thunderstorms, landslides, hailstorms, mudslides
and heat waves. PRIDE will focus on addressing issues of drought through irrigation and agriculture
practices as well as erosion risk areas through the catchment protection. The figures below illustrate
the high risk areas for erosion and droughts incidence.
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Figure 2: Erosion risks and drought occurrence in Malawi
Policy and institutional framework for addressing climate change
10. Based on the above projections, Malawi developed a response to addressing climate change
firstly through the National Adaptation Plan of Action (NAPA), in 2006, as in line with the UNFCCC
processes. The NAPA was to address the immediate adaptation needs and included identification of
priority sectors and projects. Several sectors including agriculture, water, energy, fisheries, forestry
and product use, were identified for priority adaptation interventions. The most vulnerable districts
based on the assessment conducted for developing the NAPA were Karonga, Salima, Dedza,
Chikwawa, Nsanje and Zomba. As a result of the assessment five urgent and immediate priority
actions were recommended including two that focused on agriculture and rural development:
(i).improving community resilience to climate change through the development of sustainable rural
livelihoods; and (ii) improving agricultural productivity under changing climatic conditions marked by
erratic rains.
11. The NAPA is now being converted into a National Adaptation Plan with a more long term
perspective and aligned with the national development agenda. GOM has developed a National
Climate Change Investment Plan to be driven by the MONREM.
12. The climate change agenda in Malawi is overseen by the MDPC, which leads the
implementation of the National Climate Change program and ensures the mainstreaming of climate
change in sector programs and government policies. The MDPC chairs the National Climate Change
Steering Committee. The MONREM is the line Ministry with most of the technical and data collection
responsibility. The Department for Climate Change and Meteorological Services provides data on
climate change, while the Department of Environmental Affairs led the preparation of the NAPA. The
institutional set-up provides a structured approach to managing the risks of climate change and
coordinates the activities as well as provides some of the relevant capacity for the oversight functions.
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Climate change Impacts on food crops
13. Malawi is exposed to climate risks including flooding, shorter rains, dry spells, late rains,
drought, strong winds hail storms and increasing temperatures. These risks have been increasing and
the trend is expected to continue despite the uncertainty in climate projections. The impacts of current
climate variability and change include crops drying before maturity, crop damage due to floods, soil
degradation (soil erosion, loss of soil fertility, siltation of fields), shortage of water, loss of land,
reduction in yield, and consequently food insecurity.
14. The impacts of increasing climate variability and change have already triggered agricultural
officers to promote irrigation, fish farming, hybrid and drought-tolerant crops as measures to improve
yields. However, practices such as irrigation also lead to the expansion of cultivation into areas that
are more environmentally sensitive and essential for ecosystem services such as the river banks and
dambos. In cognisance of the investment costs for irrigation infrastructure and the potential reach,
more attention should be placed on developing and disseminating technologies that can stabilise rain-
fed production systems. In addition afforestation, bank reinforcement and the use of vetiver grass to
stabilise ecosystems near water channels are also being promoted. On the policy level the Farm Input
Subsidy Program which focuses on maize, the staple crop, has contributed to the expansion of the
cereal, which is less climate-resilient than other traditional crops such as sorghum and pigeon peas.
15. The predicted increase in temperature will impact on maize yields, which decrease with higher
temperatures (Lobell et al., 2008 and 2010; C. Ringler, 2010). The sensitivity to heat of the maize crop
is exacerbated by drought conditions due to the absence of sufficient levels of moisture in the soil
(Lobell et al., 2011). The reduced moisture-holding capacity of the soil is also increasingly aggravated
by excessive rainfall runoff and low levels of soil organic matter. Between 1985 and 2005, maize
yields in Malawi averaged approximately 1.3 tons per ha. In comparison the 2004/2005 drought had a
devastating effect on maize yields, and the national average yield fell 40% below the long term
average, to 0.76 tons/ha. Erratic rainfall and dry spells also have a significant impact on maize, which
is particularly sensitive and has reduced yields when rainfall is outside of the range of 90 to 120% of
the norm (Benson and Clay, 2004). During the 2011/12 season MOAFS recorded a 7% and 6% drop
in the national production of maize and rice respectively, mainly due to dry spells, which resulted in
unavailability of water for the crop growth. During excessive rainfall limited solar radiation can be a
limiting factor. Predictability of climate requires more attention to be paid to intra-seasonal rainfall and
the collection of more localised climatic data.
16. To address the challenges of increased rainfall variability improved varieties, which are early
maturing and can yield successfully even when the season is shorter, have been developed.
However, they also have some disadvantages such as requiring the application of fertiliser, which is
not always the case for traditional varieties and increased susceptibility to prolonged dry spells that
commonly occur in January and February coinciding with the crucial growth stages. Good soil fertility
management is important for all varieties. Improved varieties are also more susceptible to pest
damage in storage, as the grains are less dense and easier to “bore.” Traditional varieties cope better
with more prolonged moisture shortage, though they too suffer yield losses if the period is very
prolonged (Lobell et al., 2011).
17. The adoption of improved varieties shows the willingness of farmers to adapt albeit some revert
back to traditional varieties. This willingness of individual farmers can be built on in cognisance of the
fact that poorer ones have less assets and resources to enable them manage the uncertainty of
climate change and its impacts. Some crops can cope with the late onset of rains and have
insignificant changes in yields, while others can be greatly reduced. Therefore in order to manage the
effects of a changing climate farmers will need a range of options including a variety of crops to
cultivate and the information and knowledge to adjust their agricultural practices. As has been tried
and tested, agricultural diversification and intensification with activities such as agroforestry,
permaculture, water harvesting, conservation agriculture and soil fertility management, will be
important in enhancing the resilience and reduce the impact of the climate events as well as the time
required to recover between these events.
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18. The major coping strategies for food insecurity resulting from climate-related risks presently
employed by the smallholders households include food purchases, enrolment as casual labour, food
rationing and sale of livestock; though most of the coping mechanisms have not been effective
(Climate change Adaptation for Rural Livelihoods and Agriculture Project survey, 2009). Some of
these mechanisms actually result in other problems such as malnutrition and spread of diseases,
which exacerbates the vulnerability of the communities.
Climate change impacts on the natural resource base
19. The agriculture sector in Malawi creates the largest demand for the abundant surface water
resources. Approximately 71% of the water resources are used on arable agriculture, while 19% is
used for domestic purposes. Important surface water sources include the Shire River, which is fed by
outflows from Lake Malawi, and Lake Chilwa which is surrounded by wetlands and is considered a
very fragile hydrologic system, especially vulnerable to the impacts of climate change (Malawi Climate
Change Vulnerability Assessment USAID, 2013). The Shire River also provides the majority of
irrigation water for the southern part of the country.
20. Though Malawi has abundant surface water resources to be defined as a water scarce country
(availability of less than 1,700m3 per capita per year), localised water scarcity still exists as well as
second order water scarcity that results from not adequately managing access to the water resources.
Malawi is however considered water-stressed based on renewable water resources being less than
1,400m3 per capita per year. The impacts of climate change on water availability in Malawi are
already evident in the erratic rains, extended dry periods, and increased evaporation due to higher
temperatures. Surface water is more abundant and accessible than groundwater resources in all sub-
basins of Malawi. However, surface water bodies exhibit a high sensitivity to changes in climate.
During recent extreme drought conditions, most sub-basins in the country retained little surface water.
There is, therefore, scope to enhance the quantity of water that is retained, e.g. by man-made
reservoirs, at the end of the rainy season. The total annual average water demand in Malawi is
estimated at approximately 2,900 Ml/day (2010), increasing to 3,900 Ml/d during the normal dry
season. During an extreme drought event dry season, demand increases to 55% (i.e., resources are
more constrained but still generally in surplus at a national scale) (Malawi Climate Change
Vulnerability Assessment USAID, 2013).
21. Water availability projections based on climate modelling show that within a 20 years' time
frame, annual surface water resource availability will increase by approximately 4%, while the
availability of dry season water resources will decrease by about 10%. An actual shortfall of 2,350
million litres per day is predicted for the Lower Shire (Water Resources Investment Strategy, GOM,
2011). Much will depend on efforts to use water more effectively to counter the effects of climate
change. Such efforts should include demand management (irrigation efficiency, drought-resistant early
maturing varieties, improved agricultural practices) and supply management (enhanced storage
capacity, catchment management). Both small- and large-scale irrigation expansion is planned in
Malawi. The water use efficiency will be trialled by farmers in PRIDE through adaptive research and
demonstration trials on irrigation agronomy. The design of irrigation schemes will incorporate
measures for climate-resilience, such as enhancing water storage capacity (drought) and flood
protection measures for irrigated fields (in case of extreme rains).
22. As mentioned in the sections above on climate change impacts on food crops, climate change
will also impact on the land resources. The impacts are related to soil moisture content and quality as
a result of events such as droughts and floods. The climatic events exacerbate the human induced
reduction in soil fertility and vegetation cover. Land degradation as a consequence of a combination of
factors including deforestation, increased rainfall runoff, and accelerated sheet erosion negatively
impacts the productivity of smallholders in Malawi. Soil loss was recently estimated to average 20
tons/ha/year, which contributes to a reduction in crop yields of more than four per cent per year (Yaron
et al., 2011). Smallholders are also accustomed to continuous cropping while giving little attention to
soil and water conservation measures. The sustainability and functionality of the irrigation schemes
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developed or rehabilitated under PRIDE will in part depend on sustainable land management
practices in the wider landscape where rain-fed agriculture will continue to be practiced.
23. The fragile and degrading resource base limits the options for actual climate change adaptation
and often results in unsustainable exploitation of natural resources such as forests. The clearing of
forests contributes to flood events during more intense rains.
Current climate change adaptation
24. At the household level, strategies relating to crop production and reducing the risk associated
with climate events include crop diversification, adjusting timing of agricultural activities such as
planting, changes in tillage practices, irrigation, efficient water use, food rationing, casual labour and
fishing. Other strategies include shifting homes to higher ground, increasing storage of grain in local
granaries, hunting, gathering and eating wild fruits and vegetables and sinking boreholes. Irrigation
farming is one of the most common ways of adapting to climatic hazards such as rainfall variability. At
the national level Government also increases expenditure on imports to meet food deficits as a
temporary measure.
25. Other strategies to manage the risks of climatic events include the move to drought resistant or
hybrid varieties that are favoured for their shorter growing seasons. However, several challenges are
also associated with adoption of these varieties such as the annual purchase required for the hybrid
seeds and the inaccessibility to the poorest households. Some varieties have lower yields and may
lead to expansion of agriculture into more marginal areas without improving the agronomic practices.
In addition, the increase in hybrid yields is often met with an increase in post-harvest losses due to
lack of markets and limited access to them. Therefore farmers often opt to return to traditional
varieties. The post-harvest losses are also a consequence of a reported prevalence of pests that
result in premature harvesting, shorter storage, and a general move away from household and
community granaries.
26. Due to increased rainfall variability, farmers are sometimes forced to delay planting and to
frequently replant their crops. Farmers are also observed to shift from maize to more drought-tolerant
food crops, such as cassava; and to relocate cultivation to stream banks. Conservation agriculture
can make present farming systems more resilient. Conservation agriculture practices proved effective
for soil moisture conservation and increased crop yields, particularly during periods with increased
rainfall variability and on soils with lower clay content (Total Land Care, 2012). Practices include
reduced and no-till planting techniques, both crop diversification and intercropping, and irrigated
vegetable gardens
27. Other practices adopted by smallholders to address declining soil fertility include increased use
of available animal manures and composts, and regeneration of trees such as the nitrogen-fixing
agro-forestry species in their cultivated fields in order to help replenish soil organic matter. Trees have
the additional benefit of providing fuel wood, fodder, and other non-timber forest products as well as
reducing rainfall runoff, increasing infiltration and thus securing local water supplies. Fodder from
trees can be used to replace crop residues that are in increasing demand for use as livestock fodder
and can alternatively be left in the fields for improved soil moisture retention.
28. Several instruments for managing climate-related risks have been trialled in Malawi. One option
is weather-indexed insurance, which is mainly used on the tobacco farmers. This was previously
piloted on a variety of crops grown by smallholders. One of the inherent flaws was the aggregation of
conditions over the whole of the country as part of the pay-out trigger, which by default ignored the
regional weather patterns and specificities. The Opportunities Bank of Malawi reports the system is
currently under revision with new investors from the private sector entering the market. However this
instrument could not be included as a potential means of managing climate risks in PRIDE as the
environment is still not conducive for smallholders and the premium prices are unaffordable.
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Climate change adaptation measures for PRIDE 29. PRIDE’s goal of strengthening the resilience of rural communities to economic, climate change
and other shocks, implies a focus on measures that can be implemented and managed at the level of
communities. The climate change adaptation measures included in PRIDE apply the same focus on
measures to be developed for communities and, hence, derive from two categories: community-level
natural resource management and climate-smart agricultural practices.
PRIDE natural resource management
30. Improved management of natural resources, particularly at the level of entire communities
would reduce the vulnerability of smallholders to climate change. PRIDE includes two community-
level interventions in natural resource management: (i) the development of irrigation infrastructure
(funded by IFAD); and (ii) physical measures aimed at restoring eroded lands and reducing
vulnerability of erosion-prone lands (proposed to be funded by ASAP).
31. Irrigation investments capture water resources for agriculture, through both run-of-the-river
irrigation schemes, and through small- to medium-sized impoundments. With increasingly erratic
rainfall patterns as a result of climate change, and utilisation of dry season river flows reaching its
maximum, water storage has become a necessity for further agricultural development in Malawi.
Water storage will have a positive effect on the regulation of water flows and as such, combined with
improved catchment management, reduce the chance of river floods.
32. Construction of dams and development of irrigated commands has impacts on the natural
environment and on communities in many different ways, and each scheme would need a thorough
review from environmental and social point of view. Environmental and social management plans, and
if need be, resettlement action plans need to be defined and implemented to safeguard that outcomes
of the intervention are positive and contribute to enhanced resilience.
33. Erosion prevention and rehabilitation measures help safeguard and/or restore the natural
resource base of entire communities. The investments for erosion control and prevention included in
PRIDE follow national strategies for catchment management, but are applied to smaller areas so that
– with the limited resources – still a notable local impact can be created. The investments in the
scheme cluster areas will provide a model for comprehensive catchment management, and could be
scaled-up through mobilisation of additional resources.
34. The erosion-related measures included under PRIDE address locations within the scheme
cluster areas that are at-risk. This could be slopes where the soil cover is wearing out; locations
where mass-movement is taking place (e.g. gullies); and river banks that are under threat.
Geographic information on such localities, combined with the views and insights of communities helps
prioritise locations where intervention is needed. Formation of conservation groups – comprising
smallholders working on or near the at-risk location – will be formed to manage the location after
improvement, on the proviso that the group is allowed to derive benefits from doing so.
35. The catchment management activities under PRIDE will include natural forest regeneration,
community woodlots and nurseries to reverse the rates of deforestation and contribute to reducing soil
erosion. PRIDE will also include restoration of soil cover on vulnerable slopes, using fodder that can
be used in a cut & carry practice. More heavy investment will take place on active erosion sites, and
may include contour bunds and gully plugging.
PRIDE climate smart agriculture (CSA)
36. The climate variability described in earlier sections necessitates the adaptation of agricultural
practices and systems to ensure sustained and possibly increased productivity. Adaptation can be
done at different levels ranging from production systems, via crop varieties, to crop animal husbandry
methods.
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37. FAO’s Economics and Policy Innovations for Climate-Smart Agriculture (EPIC) programme25
has worked in the past three years in Malawi to identify the most suitable context- and climate-specific
CSA practices from a combination of policy work, stakeholders’ consultation and qualitative and
quantitative analysis. Specifically, the Programme has tried to fill key gaps in knowledge on the trade-
offs and synergies between productivity, smallholder income growth, adaptation to climate change and
resilience in production systems and reduced emissions of greenhouse gasses that are generated by
various transformation pathways for smallholder agriculture and the impacts of policies and potential
investments in the country. In addition, it has helped in creating a base of evidence to undertake
informed decision and has identified institutional arrangements that can support possible synergies,
and achieve coherence across the food security, agricultural development and climate change
adaptation and mitigation policy processes.
38. FAO- EPIC has established a consolidated evidence base for CSA in Malawi, including:
(i) analysis of climate change impacts at sub-national level and their implications for the productivity,
income and resilience impacts likely to ensue from adopting specific practices; (ii) a range of
sustainable land management options such as intercropping, legume rotations, conservation
agriculture and agro-forestry; and (iii) consideration of crop and income diversification. FAO-EPIC has
established policy linkages in Malawi, including the CSA project core teams and national coordinator.
The FAO-EPIC team works with Malawian partners and the CSA and CA project core teams, to
provide information and analysis to support the development of NAPA and facilitate policy dialogue to
include CSA options under national policies and implementation strategies.
39. The main focus of CSA activities to be incorporated – based a/o on the lessons of EPIC – will
be on adaptation and dissemination of climate-smart agriculture options that have a proven likelihood
of effectively enhancing farming system resilience to climate variability. The following (categories of)
practices have been identified:
Making better use off location-specified climate and weather information services;
Improving access to improved seed varieties – drought-tolerant, early-maturing, pest resistant,
high-value crops particularly for irrigation;
Optimising planting dates and irrigation schedules, aiming for the highest production (area and
yield) with the wisest use of soil residual moisture and irrigation deliveries;
Introducing improved cooking stoves to reduce pressures on renewable energy sources;
Promote conservation agriculture, with its emphasis on minimum soil disturbance, enhanced
integration of crop residues and mixed cropping including use of fertility trees, crop
diversification and rotation; including leguminous plants;
Introduction of integrated pest management practices, thereby reducing vulnerabilities of the
more intensive cultivation in irrigated commands;
Improve drying and storage facilities to reduce post-harvest losses.
40. The strategy to disseminate the above climate-smart Good Agricultural Practices comprises a
combination of (i) inventory of existing climate-smart good agricultural practices; (ii) adaptive research
trials for practices not yet tested under Malawi’s agro-ecological conditions; (iii) development of
training materials for extension workers and smallholder farmers; (iv) training of extension cadre in the
GAPs; (v) demonstration of GAPS in farmer fields by lead farmers; and (vi) simultaneous sharing of
knowledge and skills within farmer field schools.
41. Dialogue between local and national levels and across climate change and agricultural policy
fora is essential to create an enabling environment for the effective and broad adoption of climate-
resilient technologies and activities. PRIDE will share lessons learned on climate-smart agriculture
through workshops, factsheets and a national symposium. This will contribute to the country’s
capacity to elaborate and implement effective and harmonised policies for climate-related
interventions in agriculture.
25
http://www.fao.org/climatechange/epic/home/en/
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42. The climate change adaptation activities incorporated in the PRIDE design are summarised in
the table overleaf. ASAP funding is proposed for the soil- and water conservation measures in
components 1.3; and the good agricultural practices in component 2.1 and 2.3 (improved cooking
stoves).
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Climate risks
identified
Shorter duration of
rainy season (late
start and early
finish)
Drought events Prolonged dry spells Flood events Increasing
temperature
Impacts on
production and
infrastructure
Replanting of crops required
Yields reduced
Limitation in varieties of crops
Crop failure
Delayed planting
Reduced availability of and competition for water
Reduced areas for irrigation
Changes in crop selection based on water availability
Reduced crop yields Destruction of crops
Damage of rural infrastructure including irrigation facilities, access roads and post-harvest facilities
Increased sedimentation in rivers and streams
Reduced yields for sensitive food crops such as maize
Location Country wide Country wide but more
pronounced in northern and
central regions
Country wide More frequent in
southern districts
Country wide
Option of activities and investments to be funded through ASAP in PRIDE
Component 1
Irrigation
development and
Catchment
Management
Vulnerability assessment to identify and prioritise degraded and vulnerable hotspots in catchments including support from GIS assessments
Capacity building (training and mentoring) for community based NRM
Conservation area management model to be developed with immediate stakeholders, resulting in a trade-off between conservation and local benefits
Multipurpose vegetated contours for erosion control
Gully plugging as and when required
Restoration of soil cover and reforestation of erosion-prone areas
Community nurseries and woodlots on communal land
Component 2
Agriculture and
Market Linkages
Improved climate information (collection and dissemination) – portable weather forecasters, equipment for officers, assessment of agro-meteorological network and upgrading where necessary to automated weather stations to contribute to national monitoring. Translation of forecasts into local languages will be facilitated
Conservation agriculture (based on principles of minimum tillage, mixed cropping and maximum crop cover
Soil fertility improvement through agroforestry and composting
Farmer field trials to optimise irrigation scheduling and improving crop water productivity
Livelihoods diversification options, potentially livestock
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Appendix 15: Mainstreaming nutrition
1. Introduction. The purpose of PRIDE is to upgrade and promote irrigation schemes and
improve the management of the catchment area in order to enable smallholder farmers improve their
livelihoods by increasing their incomes with positive nutritional outcomes. Building on the success of
IRLADP and the fact that increases in income and access to food do not guarantee good nutrition
PRIDE therefore, aims to mainstream the nutrition perspective from the design stage. The
opportunities and pathways for leveraging agricultural development to positive nutritional outcomes
are identified in the PDR.
2. Nutrition situation. According to the nutrition surveys in Malawi, child stunting and anaemia
remain the persistent malnutrition problem in the country (table 1). There has been sluggish progress
in improving child nutrition in Malawi, despite the progress in the country’s macroeconomic
performance. The review of previous Malawi Demographic Health Survey (MDHS) data indicated 49%
stunting rates in 1992, which stagnated at 49% in 2000, then dropped by 1% in 2004 and the current
data, 2010 had a sluggish 2% decline. Currently, nearly half of the children under the age of five years
are stunted (47%) with a higher proportion of males (51%) than females (43%) and higher prevalence
in rural areas 48%, versus 41% in urban areas. The stunting situation according to the three regions
of Malawi is: 45% in the North, 47% in Central, and 48% in the South. In terms of districts, Chiradzulu
had the highest stunting rate of 57% while the lowest rate was in Karonga at 38%. Anaemia ranges
from a high of 77% in Chikhwawa to a low of 46% in Chiradzulu district. These prevalence rates are of
serious public health concern because of the consequences on cognitive, motor development
impairment, increased morbidity from infectious diseases and the irreversible lost growth potentials in
children.
Table 1: Nutritional status of children under 5 years in Malawi
Malnutrition Residence
Rural Urban
Region
North Central Southern
Total
Stunting 48 41 45 47 48 47
Wasted 4 2 2 4 4 4
Underweight 13 10 11 14 13 13
Anaemia 64 53 58 64 62 63
SOURCE: MDHS, 2010
3. Nutrition concern: Poor feeding practices have been identified as an important factor of child
malnutrition in Malawi. A large body of research indicates the influence of agricultural activities on
child feeding and nutritional status, through household food security and women’s caregiving capacity.
Agricultural labour may take time away from childcare or force caregivers to feed children in work
environments. Unintentional adverse effect through agricultural activities such as exposure to toxins
i.e. aflatoxin can deleteriously affect women’s health, nutrition and negative consequences for child
growth and development. PRIDE activities from agriculture to dietary diversity will therefore, adapt
improved technologies to mitigate adverse effects and indicators will be integrated to track and
monitor progress on beneficiaries. Actions supporting adequate food consumption, from various food
groups and considerations on female workload will accelerate the target of 80% reduction in child
malnutrition.
4. The verification indicators for the programme goal as stated in the logframe should be specified
on the form of malnutrition. For PRIDE, stunting is the nutrition indicators of relevance at goal level.
Other relevant indicators for tracking and monitoring PRIDE contribution to nutritional outcomes
should include: women of reproductive age (15-49) body mass index (BMI), Women Dietary Diversity
Score (WDDS) and time spent on accessing food, fuel. WDDS is a proxy indicator for micronutrient
adequacy and also means of measuring impact on dietary diversity. PRIDE will collaborate with FAO
to conduct the dietary diversity survey utilizing the FAO guidelines on dietary diversity scores, which
have already been adapted by LUANAR for Malawian foods and language (Chichewa).
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5. Scaling Up Nutrition (SUN) movement: PRIDE will harmonise activities with GOM and other
development partners to support the SUN movement. Nutrition is one of the GOM areas of investment
and a priority in the MGDS II. The Office of the President and Cabinet, Department for Nutrition, HIV
and AIDS has established multi-sectoral coordination of nutrition programme implementation at
national, district, village levels and is planning to deploy nutritionists in the local councils to improve
coordination, monitoring and reporting. PRIDE collaboration with UN Malawi Nutrition Network is an
opportunity of bringing IFAD comparative advantages and participation in the United Nations
Development Assistance Framework in support to the MGDS II and the SUN initiative.
6. Nutrition Education and Communication Strategy (NECS): NECS is one of the
government’s key instruments for the SUN movement, which aims to strengthen and harmonize the
systems of SUN messages and practices from national to grassroots level. PRIDE will support
capacity development of service providers through NECS by working closely with Food and Nutrition
Officers, DAES in collaboration with UN Malawi Nutrition Network and other key partners.
7. Trainings and technical assistance: Extension services and trainings on nutrition will be
carried out through the DAES system. This is a multi-stakeholder approach of coordinating and
implementing agricultural extension activities at national, division, district, Agricultural EPA,
Agricultural sections and community levels to bring service delivery closer to beneficiaries. Services
will be provided to farmers and beneficiaries by the lead farmers through established farmer groups,
care groups and village associations. These lead farmers will receive trainings from the AEDOs who
are trained and supervised by agricultural extension development coordinators (AEDCs) at EPA level.
These AEDCs are coached by Food and Nutrition officers and other relevant specialists at district
level.
8. The AEDCs, AEDOs, lead farmers will be supported with mobility to facilitate their nutrition
activities at Village Development Committees (VDCs), farmer business schools, farmer field schools,
Water User Associations (WUAs), Water User Groups (WUGs). PRIDE will support development of
IEC materials, demonstration equipment and refresher courses for DAES staff where gaps are
identified to assist, improve and update their nutrition knowledge and communication skills. The
mission learnt that there is lack of specialized staff at EPA level. MoAIWD is advocating with
government to create a permanent position of nutrition officers at EPA level.
9. Linkages: Following the consultation and meetings with the UN Malawi Nutrition Network,
PRIDE will develop into an integral part of on-going nutrition activities by development partners in
districts to maximize impact and generate synergies in agriculture for good nutrition. Through the
framework of NECS, PRIDE will build linkages with UNICEF on nutrition awareness and
communication, FAO on nutrition education, food diversification, food consumption surveys,
integrated homestead farming production (IHFP) and any other food related activities that exist within
the district.
10. Integrated homestead food production will complement Subcomponent 2.2: activity on
Livelihood Diversification to facilitate adequate food consumption at household level. IHFP is an
approach to improve diverse food access, primarily proteins and micronutrients (vitamins and
minerals), as well nutrition information. The nutrition education component of IHFP is to ensure that
increased food production and income is not an end to beneficiaries, it will complement the actions for
food availability, access and diversification to encourage adequate consumption. Capacity will be
developed by supporting training of trainers who can roll-out the toolkit on IHFP to the villages. PRIDE
will collaborate with FAO on this activity.
11. Improved cooking stoves: PRIDE will integrate an initiative on improved cooking stoves to
support interventions on crop diversification and women active participation. Efficient cook stoves
greatly reduce, or even eliminate the need for women and girl children to gather and carry heavy
loads of firewood over long distances, thereby increasing the availability of energy for women to
provide support for infant and young child care and nutrition. Cleaner efficient cooking stoves are
labour and time saving technologies that not only free up time and energy for women and children but
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reduce their exposure to dangerous biomass smoke pollution, reducing sickness and improving
productivity and health at the family level.
12. Provision of improved stoves will target 10,000 households adopting the good agricultural
practices (GAP). The gender mainstreaming and targeting approach will be adopted in reaching out to
all female headed households, child headed households, households with people suffering from
disabilities, chronic illnesses such as HIV/AIDS. All the farmers’ clubs/groups and the ultra-poor
groups with extremely limited resources and food and nutrition insecure will also be targeted for this
activity. To target more beneficiaries on the stove usage, TLC-SAPP model will be adopted in training
the extension workers and field coordinators for rolling out stove demonstration to other farmers in the
communities.
13. Crop diversification: The action on production of diversified food crops should identify and
include indigenous plants with nutrition potentials. In Malawi, there is a wide range of domesticated
and wild food species that possess superior nutritional value than the staple crops. Identification of
priority species could be included in the baseline survey. For example moringa oleifera, a local plant
commonly grown in Malawi has great potential for vitamin A deficiency intervention.
14. Post-Harvest Management: The actions involved in post-harvest handling, food processing,
transportation, marketing and storage could involve research activities on nutritional value and safety
of commodity and products. PRIDE should engage with research centres to coordinate this activity
through the RLEEP research grant window. Post-Harvest Management (sub-component 2.2) should
pay attention to aflatoxin control in groundnut and maize commodities. Aflatoxin testing equipment
should be made available to farmers to ensure safe consumption and quality of product for good
markets. Activities on value chain should include the development of value added products that are
nutrient dense. This will support the production and increase choices of nutritious foods in the
markets.
15. Baseline survey: For effective measurement of PRIDE contribution to the nutritional status of
beneficiaries as stated in COSOP, baseline information on nutrition situation and food pattern will
serve as benchmark data. Information to be included in the baseline survey are; child malnutrition
(stunting, micronutrient deficiencies), Women body mass index (BMI), Minimum Dietary Diversity for
Women (MDD-W) and time spent on accessing food, fuel. Reduction in time spent on accessing food,
fuel will serve as a proxy indicator for measuring project support to care giving and maternal nutrition.
Secondary data on nutrition can be derived from existing surveys such as the Malawi Demographic
Health Survey (MDHS), Multi-cluster Indicator Survey and National Micronutrient Survey.