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REPUBLIC OF ANGOLA MINISTRY OF AGRICULTURE AND FORESTY
COMMERCIAL AGRICULTURE DEVELOPMENT PROJECT -CADP
Quarterly Report
TABLE OF CONTENTS
1. Introductory Note .......................................................................................................... 1
2. Project Description ....................................................................................................... 1
3. Disbursements ............................................................................................................. 1
3.2. Disbursement up to Period and Funds Available ................................................. 2
4. Quarterly Performance ................................................................................................ 3
5. Source and applications of Funds.............................................................................. 5
5.1. Analysis of Variances ............................................................................................ 5
1
1. Introductory Note
The Ministry of Agriculture and Forestry has established a Project Implementation Unit
(PIU) in the Office of Studies, Planning and Statistics (GEPE). The PIU deals with the
fiduciary issues (Procurement and Financial Management) of the project. This is
necessary since, according to World Bank procedures, the borrower is responsible for the
financial management of the project using rules and procedures acceptable to the World
Bank and reasonably ensuring that the proceeds of the bank loan are used for the intended
purpose in an economical and efficient manner.
The purpose of this Quarter III report is to describe the main activities carried out, the
progress obtained and their financial implementation.
2. Project Description
The objective of the Commercial Agriculture Development Project for Angola is to increase
productivity and market access for selected beneficiaries in the project areas. There are
four components to the project, the first component being promotion and support for
agribusiness development. This component will support eligible farmers and agribusiness
SMEs, including those led by/made up of women and youth, to adopt better technologies,
improve their skills, access financial markets, and process and commercialize their
products. This component includes two subcomponents: strengthening skills, productivity,
and commercialization, and partial credit guarantees. The second component is the
infrastructure for production and marketing. This component will finance critical enabling
infrastructure for the development of commercial agriculture in the project areas, including:
(a) rehabilitation of rural roads: (b) small‐scale public irrigation infrastructure: and (c) ‘last‐
mile’ connection to the electricity grid and conversion to three phases. This component
includes three subcomponents: rehabilitation of rural roads, support to public irrigation
projects, and last‐mile rural electricity connections. The third component is the institutional
strengthening and improved business environment. This component intends to improve
the business environment and institutional capacity to support private sector
competitiveness in selected value chains. This component includes three subcomponents:
value chain strategy development, research and development, and institutional capacity
strengthening. Finally, the fourth component is the project management, monitoring, and
evaluation.
3. Disbursements
In the period as detailed below, the World Bank disbursed the amount of USD 212,463.20,
for direct payments and 6.000.000 EUR for advanced to the external designated account.
The AFD disbursed the amount USD 428.948,83 Which the amount USD 188.437,41 was
directly to the designated account - commercial bank, and USD 240.511 to direct payment.
2
CADP 2019
3.2. Disbursement up to Period and Funds Available
During the quarter ranging from 01, October of 2019 to 31, December, of 2019, the total
amount of WB's available fund is USD 112.768.987,80 and 86.593.320,00 for AFD as
shown in tables 1 and 2.
Considering that the project is in the process of setting up UIP, most of the expenditure is
in component 4 and category 10.
Table 1- Funds Available- World Bank/AFD
Description
Currency WB AFD
Reimbursement SOE nºs 8, 9, 10,11, 12, 13 and 14 USD 188 437,41
Direct Payment USD 212 463,20 240 511,42
Total 1 USD 212 463,20 428 948,83
Advanced External Designated Account EUR 6 000 000,00 0,00
Total 2 6 000 000,00 0,00
Designated Account
Financing Amount Undisbursed Disbursed %
AFD 97 346 000,00 86 884 299,46 692 881,53 0,8%
WB 130 000 000,00 107 415 163,11 9 536 861,89 8,9%
Total 227 346 000,00 194 299 462,57 10 229 743,42 9,7%
3
4. Quarterly Performance
It is important to remark that relevant technical progress was achieved for Component 1
throughout this quarter, as key advancements included:
a) Technical field missions took place, one for Corridor B in November and one for Corridor
A in December, taking into account five municipalities of the provinces of Cuanza Sul
(municipalities of Amboim and Libolo) and Cuanza Norte (municipalities of Galatando,
Gulungo Alto and Lucala); these were carried out by a team composed by the Value
Chains Specialist, Infrastructure Specialist and Safeguards Specialist. The first mission
allowed the identification of tertiary roads that serve the areas of coffee production by
stakeholders/actors of the coffee value chain at Cuanza Sul Province (Corridor B), whilst
the second mission allowed the identification of tertiary
roads that serve the areas of maize and beans production by stakeholders/actors of the
maize and beans value chains at Cuanza Norte Province (Corridor A)
b) The first call for Expressions of Interest for Business Plans took place so to invite
potential beneficiaries/candidates located in Cuanza Sul, Cuanza Norte and Malange to
fill/complete and submit their EoI Forms. The response of potential beneficiaries located
in the 12 municipalities considered has been rapid receiving more than 10 submissions of
EoIs until december. In two cases, the response included the submission of EoI Forms as
well as the confirmation that in early January at least two feasibility studies will also be
submitted so to provide the complete description of the project proposed at the EoI.
c) Moreover, also the EoI /Candidatures as well as the Request for Proposal (RFP) for the
selection of Technical Services Provider (TSPs) to Support Formulation and
Implementation of Business Plans took place. A total of nineteen (19) EoI were technically
evaluated and eight (8) firms were qualified for the RFP phase. The RFP phase for both
Corridors was launched expecting the proposals submission in early January. In addition,
the Terms of Reference (ToR) for the selection of five Participant Financial Institutions
(PFI) were finalized and it is expected that the Fundo de Garantias de Credito (FGC) will
provide technical feedback for this process throughout the next quarter.
d) In terms of environmental and social safeguards, the main actions that were developed
between October and December 2019 are related to the inclusion of the processes defined
in the CADP reference tools (ESMF, RPF and PMP) in the project's operational
documents. Among the operational documents where environmental and social
management processes were included, the most important ones are the Terms of
reference (ToR) for irrigation design companies (component 2.2), agricultural business
plan (TSP) companies (component 1.1), road rehabilitation contractors (2.1), supervision
of road rehabilitation projects (2.1) and consultancy on environmental and social
assessment of the road component (2.1).
e) Regarding the progress in the area of Matching Grants, the respective Manual of
Disbursement of Cash Flow was concluded as well as it´s procedure.
4
The procurement activities have been carried out as usual and implemented in accordance
to the updated approved Procurement Plan and Project Work Plan, guided by the
Regulations and the approved Project Operational Manual (POM). The procurement team,
composed by the Senior Procurement Officer (SPO) and the Junior Procurement Officer,
provide technical support to the Coordination to meet its needs for the success and
implementation of the project.
During this quarter, the Procurement Plan (PP) was updated and activities´ dates revised
accordingly in STEP. Some new contracts were signed which are mainly for individual
consultants’ part of the PIU; like, the Internal Auditor, Provincial Representatives for
Kwanza Norte and Malange, Matching Grant and M&E Specialists, as well the firm for
technical assistance on external auditing (years 2, 3). In addition, two contracts were
terminated (Internal Auditor and M&E Specialist) due to the consultants ‘willing not to
continue the service. It is also observed that procurement processes of other 11 activities
are ongoing and initiated which is for the completion of the PIU (Provincial
Representatives for Kwanza Sul and Assistant for the Project Coordinator), and related to
component 1 (Technical Service Providers (TSP) to Support Project Interventions for
Business Plans Preparation and Implementation), component 2 (TA on geospatial
mapping, feasibility, demand and cost studies for rural electrifications; Feasibility study on
rehabilitation of small and medium-sized irrigated perimeters), and component 3 (Data
collection and analysis/Statistic expert for GEPE, Technical support for agriculture policy
set up and analysis for GEPE/MINAGRIF). The cumulative list of the awarded contract
was elaborated as part of the monthly tasks. Another important activity to be mentioned
under this unit is related to capacity building of the procurement team (training on STEP -
Systematic Tracking on Exchanging Procurement; Procurement Regulation - Best
Practices
As part of the planned activities and after the contract was signed, the Communication
Specialist formulated a diagnosis of the communication situation, with the intent to prepare
the SWOT analysis and the Communication Plan. At the same time, and taking into
consideration the communication needs, the Terms of Reference for the "Hiring of a
communication and multimedia company to create the logo, website, institutional email,
intranet network and communication materials for the project" were drawn up, and the
announcement related to the tender was launched in Jornal de Angola, edition nº 15815,
from November 19th 2019. Seven (7) companies replied to the announcement.
The Project team has been working on the improvement of documents in the Four
Components Framework, supporting the creation of conditions for the project's
communication activity.
Thus, some internal communication tools such as the weekly agenda and a closed group
in WhatsApp were also developed, allowing all employees to have the same level of
information about the Project.
In relation to the established goals, the overall result can be considered positive, all the
financial management activities have been achieved, awaiting the operationalization of
the off shore account, which should be concluded after March.
In the meantime, due to some constraints it was not possible to execute the activities
foreseen in components 1 and 2 namely:
5
- Conditional Disbursement - Problems in hiring consultants whose disbursement created
a differential between planned and executed disbursements.
- Local Bank still not able to carry out payment as agreed
- AFD not payed on time which makes consultants working on half payment since October
- Issues related to obtaining visas for international consultants can also be considered as
one of the main problems for the composition of the PIU team.
5. Source and applications of Funds
The table “Statement of source and Applications of Funds” below shows the financial
situation of the project from the beginning to the end of the period 1st of October to 31rd of
December 2019, detailing the origin of the funds and their application by components
5.1. Analysis of Variances
There is a marked deviation in all components, most of the planned activities were not
carried out. The delay in opening an offshore account, which is under the responsibility of
the Ministry of Finance, and the weak capacity of the local bank to make payments in
foreign currency internationally, and issues related to obtaining visas for international
consultants can be considered as one of the causes of the deviations between the planned
and the executed.
5
STATEMENT OF SOURCE AND APPLICATION OF FUNDS
PERIOD: 01-01-2019 À 12-31-2019 Values in USD
DESIGNATION PREVIOUS
YEARS
2019
ACCUMULAT
ED
1
QUARTER
2
QUARTER
3
QUARTER
4
QUARTER TOTAL
A - OPENING BALANCE AT
BEGINNING OF THE YEAR 0,00
UIP - Luanda - BanK BAI
World Bank - Designated Account BAI
Bank, USD 1 447 323,17 233 234,63 66 574,60 1 863,13 99 510,71 1 848 506,24
World Bank - Designated Account BAI
Bank, EUR 19 551,44 13 675,25 2 868,70 2 546,96 220 427,49 259 069,84
World Bank - Designated Account BAI
Bank, AKZ 6 991,61 563,85 53 173,51 168,02 7 344,73 68 241,72
World Bank /French Development
Agency - Designated Account Bank ,
EUR ( Externe)
0,00 0,00 0,00 0,00 0,00
Sub-total Banks UIP-Luanda 1 473 866,22 247 473,73 122 616,81 4 578,11 327 282,93 2 175 817,80
UIP - Luanda -Petit Cash
CADP- Cash on-hand AKZ 1 372,26 57,31 342,55 60,60 256,69 2 089,41
Sub-total CADP-Luanda Petit Cash 1 372,26 57,31 342,55 60,60 256,69 2 089,41
TOTAL A - CASH AT BEGINNING
AT THE YEAR 1 475 238,48 247 531,04 122 959,36 4 638,71 327 539,62 2 177 907,21
6
B - SOURCE OF FUNDS 0,00
World Bank- Designated Account 628 795,95 0,00 293 560,42 922 356,37
French Development Agency -
Designated Account 0,00 220 427,49 188 437,45 408 864,94
World Bank/ French Dev. AG -
External Designated Account 6 617 700,00 6 617 700,00
World Bank Direct Payments 1 316 477,21 78 806,53 70 919,57 212 463,20 1 678 666,51
Direct Payments French Development
Agency 0,00 240 511,42 240 511,42
TOTAL B - SOURCE OF FUNDS 1 945 273,16 0,00 78 806,53 584 907,48 7 259 112,07 9 868 099,24
C - TOTAL FUNDS AVAILABLE (
A+B ) 3 420 511,64 247 531,04 201 765,89 589 546,19 7 586 651,69 12 046 006,45
D - APPLICATION OF FUNDS
World Bank (WB)
Component 1: Promotion and
Support for Agribusiness
Development
-
-
-
- -
-
Sub-component 1.1: Strengthenbing
Skills, Productivity, and
Commercialization
0,00
Sub-component 1.2: Partial Credit
Garantees 0,00
COMPONENT 2: Infrastructure for
Production and Marketing 0,00 0,00 0,00 0,00 0,00 0,00
7
Sub-component 2.1: Rehabilitation of
Rural Roads 0,00
Sub-component 2.2: Support to
Public Irrigation Projects 0,00
Sub-component 2.3: Last-mile Rural
Electricity Connections 0,00
COMPONENT 3: Institutional
Strengthening and Improved
Business Environment
0,00 0,00 0,00 0,00 1 348,04 1 348,04
Sub-component 3.1: Value Chain
Strategy Development 0,00
Sub-component 3.2: Research and
Development 0,00
Sub-component 3.3: Institutional
Capacity Strengthening 1 348,04 1 348,04
COMPONENT 4: Project
Manageement, Monitoring, and
Evaluation
1 697 742,12 124 571,68 197 127,18 158 963,11 321 686,27 2 500 090,36
Project Manageement 1 697 742,12 124 571,68 197 127,18 158 963,11 321 686,27 2 500 090,36
Monitoring, and Evaluation ,Audit 0,00
World Bank Sub-Total 1 697 742,12 124 571,68 197 127,18 158 963,11 323 034,31 2 501 438,40
French Development Agency (AFD)
Component 1: Promotion and
Support for Agribusiness
Development
0,00 0,00 0,00 0,00 0,00 0,00
8
Sub-component 1.1: Strengthenbing
Skills, Productivity, and
Commercialization
0,00
Sub-component 1.2: Partial Credit
Garantees 0,00
COMPONENT 2: Infrastructure for
Production and Marketing 0,00 0,00 0,00 0,00 0,00 0,00
Sub-component 2.1: Rehabilitation of
Rural Roads
Sub-component 2.2: Support to
Public Irrigation Projects
Sub-component 2.3: Last-mile Rural
Electricity Connections
COMPONENT 3: Institutional
Strengthening and Improved
Business Environment
0,00 0,00 0,00 0,00 1 348,04 1 348,04
Sub-component 3.1: Value Chain
Strategy Development
Sub-component 3.2: Research and
Development
Sub-component 3.3: Institutional
Capacity Strengthening 1 348,04
COMPONENT 4: Project
Manageement, Monitoring, and
Evaluation
0,00 0,00 0,00 103 043,46 352 254,45 455 297,91
Project Manageement 0,00 0,00 0,00 103 043,46 352 254,45 455 297,91
Monitoring, and Evaluation ,Audit
AFD Sub-Total 0,00 0,00 0,00 103 043,46 353 602,49 456 645,95
9
D - TOTAL APPLICATION OF
FUNDS 1 697 742,12 124 571,68 197 127,18 262 006,57 676 636,80 2 958 084,35
E - DIF. BETWEEN SOURCES AND
APPLICATION FUNDS (C-D) 1 722 769,52 122 959,36 4 638,71 327 539,62 6 910 014,89 9 087 922,10
F - CLOSING BALANCE OF
DESIGANTED ACCOUNT AT THE
END OF THE PERIOD
UIP - Luanda - BAI Bank
World Bank/French Development
Agency -Designated Account BAI
Bank, USD
1 680 557,80 66 574,60 1 863,13 99 510,71 190 272,00 2 038 778,24
World Bank /French Development
Agency -Designated- Designated
Account BAI Bank, AKZ
33 226,69 2 868,70 168,02 7 344,73 2 229,18 45 837,32
World Bank/French Development
Agency -Designated - Designated
Account BAI Bank, EUR
7 555,46 53 173,51 2 546,96 220 427,49 99 584,40 383 287,82
World Bank/French Development
Agency - External Designated Account
Bank , EUR
0,00 6 617 683,46 6 617 683,46
CADP- Cash on-hand AKZ 1 429,57 342,55 60,60 256,69 245,85 2 335,26
Sub-total Banks UIP-Luanda 1 722 769,52 122 959,36 4 638,71 327 539,62 6 910 014,89 9 087 922,10
F - TOTAL CASH AND CASH
EQUIVALENTS 1 722 769,52 122 959,36 4 638,71 327 539,62 6 910 014,89 9 087 922,10
10
PERIOD: 01-01-2019 to 12-31-2019
Planed Actual Variation Planed Actual Variation Plano Actual Variação Plano Actual Variação Planed Actual Variation Planed Actual Variation
Component 1: Promotion and Support for Agribusiness Development0,00
Sub-comp.1.1: Strengthening Skills, Productivity, and
Commercialization
0,0027 777,78 13 888,89 13 888,89 41 666,67
0,0041 666,67 41 666,67
Sub-comp. 1.2: Partial Credit Garantees 0,00 0,00 0,00 0,00 0,00 0,00
Total - Components 1 0,00 0,00 0,00 0,00 0,00 0,00 0,00 27 777,78 0,00 0,00 13 888,89 0,00 13 888,89 41 666,67 0,00 41 666,67 0,00 0,00 0,00 41 666,67
Component 2: Infrastructure for Production and Marketing 0,00 0,00 0,00 0,00 0,00 0,00Sub-comp.2.1: Rehabilitation of Rural Roads 0,00 0,00 87 500,00 87 500,00 87 500,00 87 500,00 175 000,00 0,00 175 000,00 350 000,00 0,00 350 000,00 875 000,00
Sub-comp. 2.2: Support to Public Irrigation Projects 160 000,00 60 000,00 60 000,00 0,00 220 000,00 0,00
Sub-comp. 2.3: Last-mile Rural Electricity Connections 240 000,00 240 000,00 240 000,00 0,00 480 000,00
Total - Components 2 0,00 0,00 0,00 0,00 400 000,00 0,00 0,00 387 500,00 0,00 387 500,00 87 500,00 0,00 87 500,00 875 000,00 0,00 175 000,00 350 000,00 0,00 350 000,00 875 000,00
Component 3: Institutional Strengthening and Improved Business
Environment
0,00
Sub-comp. 3.1: Value Chain Strategy Development 54 583,33 266 250,00 266 250,00 14 500,00 14 500,00 335 333,33 338 333,33
Sub-comp. 3.2: Research and Development 300 000,00 87 500,00 87 500,00 0,00 0,00 0,00 387 500,00 0,00 0,00 0,00 0,00 0,00 387 500,00
Sub-comp. 3.3: Institutional Capacity Strengthening 304 666,67 66 666,66 66 666,66 3 000,00 2 696,08 303,92 374 333,33 2 696,08 371 333,33
Total - Components 3 0,00 0,00 0,00 0,00 659 250,00 0,00 0,00 420 416,66 0,00 420 416,66 17 500,00 2 696,08 14 803,92 1 097 166,66 0,00 0,00 0,00 2 696,08 0,00 1 097 166,66
Component 4: Project Manageement, Monitoring, and Evaluation 0,00 0,00 0,00
Project Management 1 697 742,12 322 680,90 124 571,68 198 109,22 841 739,87 197 127,18 644 612,69 826 813,55 262 006,57 564 806,98 822 327,05 673 940,72 148 386,33 2 813 561,37 1 257 646,15 1 555 915,22 2 813 561,37 2 955 388,27 -141 826,90 2 813 561,37Monitoring, and Evaluation ,Audit 0,00 0,00 0,00 0,00 0,00 0,00 0,00Total Component 4 1 697 742,12 322 680,90 124 571,68 198 109,22 841 739,87 197 127,18 644 612,69 826 813,55 262 006,57 564 806,98 822 327,05 673 940,72 148 386,33 2 813 561,37 1 257 646,15 1 555 915,22 2 813 561,37 2 955 388,27 -141 826,90 2 813 561,37
GLOBAL TOTAL OF COMPONENTS 1 697 742,12 322 680,90 124 571,68 198 109,22 1 900 989,87 197 127,18 644 612,69 1 662 507,99 262 006,57 1 372 723,64 941 215,94 676 636,80 264 579,14 4 827 394,70 1 257 646,15 1 772 581,89 3 163 561,37 2 958 084,35 208 173,10 4 827 394,70
Estimates of
PDAC 2019
I QUARTER 2019 PROJECT COMPONENTS AND SUBCOMPONENTS
II QUARTER 2019 III QUARTER 2019 TOTAL 2019 ACCUMULATED IV QUARTER 2019PREVIOUS
YEARS