NIGERIA TRUST FUND

Language: English Original: English

REPUBLIC OF THE GAMBIA

PARTICIPATORY INTEGRATED WATERSHED MANAGEMENT PROJECT (PIWAMP)

APPRAISAL REPORT Agriculture and Rural Development OCAR Department April 2004

TABLE OF CONTENTS

Project Information Sheet, Currency and Measures, List of Tables, List of Annexes, List of Abbreviations, Basic Data Sheet, Project Logical Framework, Executive Summary 1. ORIGIN AND HISTORY OF THE PROJECT ....................................................1 2. THE AGRICULTURAL SECTOR .......................................................................2 2.1 Salient Features ..........................................................................................................2 2.2 Land Tenure ..............................................................................................................3 2.3 Poverty Status ............................................................................................................4 2.4 Gender Issues .............................................................................................................4 2.5 HIV/AIDS issues and Vector borne diseases ............................................................6 2.6 Environmental Issues .................................................................................................7 2.7 Institutional framework ..............................................................................................7 2.8 Agricultural Sector Constraints and Potentials ........................................................11 2.9 Agricultural Policy and Development Strategy .......................................................12 2.10 Donor Interventions .................................................................................................13 3. NATURAL RESOURCES SUB-SECTOR ..........................................................15 3.1 Land Resources ........................................................................................................15 3.2 Water Resources ......................................................................................................17 3.3 Forest and Wildlife Resources .................................................................................17 4. THE PROJECT .....................................................................................................18 4.1 Project Concept and Rationale .................................................................................18 4.2 Project Area and Beneficiaries .................................................................................20 4.3 Strategic Context ......................................................................................................21 4.4 Project Objective ......................................................................................................22 4.5 Project Description ...................................................................................................22 4.6 Production, Markets and Prices ...............................................................................31 4.7 Environmental Impact ..............................................................................................32 4.8 Project Costs ............................................................................................................33 4.9 Sources of Financing and Expenditure Schedule .....................................................34 5. PROJECT IMPLEMENTATION ........................................................................36 5.1 Executing Agency ....................................................................................................36 5.2 Institutional Arrangements .......................................................................................36 5.3 Supervision and Implementation Schedules ............................................................37 5.4 Procurement Arrangements .....................................................................................38 5.5 Disbursement Arrangements ....................................................................................41 5.6 Monitoring and Evaluation ......................................................................................41 5.7 Financial Reporting and Auditing ...........................................................................42 5.8 Aid-coordination ......................................................................................................42 6. PROJECT SUSTAINABILITY AND RISKS .....................................................43 6.1 Recurrent Costs ........................................................................................................43 6.2 Project Sustainability ...............................................................................................43 6.3 Critical Risks and Mitigation Measures ...................................................................44

7. PROJECT BENEFITS ..........................................................................................44 7.1 Financial Analysis ....................................................................................................44 7.2 Economic Analysis ..................................................................................................45 7.3 Social Impact Analysis ............................................................................................45 7.4 Sensitivity Analysis .................................................................................................46 8 CONCLUSIONS AND RECOMMENDATIONS ...............................................47 8.1 Conclusions ..............................................................................................................47 8.2 Recommendations ....................................................................................................47

This report was prepared by Messrs. Driss Lekorchi, Civil Engineer (Mission Leader); Harouna Dosso, Agronomist and a Consultant Agricultural Economist, following an Appraisal Mission to The Gambia during November and December 2003. Additional inquiries relating to the report should be addressed to the authors or Mr. Sami Z. Moussa, Division Manager, OCAR.2 (Extension 2143).

LIST OF TABLES TABLE Page 4.1 Summary of Project Cost Estimates by Component ................................................34 4.2 Summary of Project Cost Estimates by Category of Expenditure ...........................34 4.3 Summary of Project Cost by Source of Financing ...................................................35 4.4 Summary of Project Cost by Category of Expenditure and Financier .....................35 4.5 Summary Expenditure Schedule by Component .....................................................36 4.6 Summary Expenditure Schedule by Source of Finance ...........................................36 5.1 Summary of Implementation Schedule ....................................................................39 5.2 Summary of Procurement Arrangements .................................................................39

LIST OF ANNEXES ANNEXES Number of Pages 1. Map of Project Area ...................................................................................................1 2. Project Organisation and Management ......................................................................1 3. Provisional List of Goods and Services .....................................................................1 4. Environmental and Social Management Summary ....................................................2 5. Bank Group Operations ............................................................................................2

VOLUME 2 ANNEXES Number of Pages 1. Farm Budgets .............................................................................................................6 2. Detailed Cost Tables ..................................................................................................8 3. Detailed Economic and Financial Analysis ...............................................................2 4. IAFD Main Appraisal Report ..................................................................................66 5. Engineering Design Description ..............................................................................43 6. Working Papers: Institutional and Implementation Arrangements .........................51

NIGERIAN TRUST FUND BP 323 – 1002 Tunis Belvédère, Tunis - TUNISIA

TEL: (216) 71.10.20.36 FAX: (216) 71.33.29.92

PROJECT INFORMATION SHEET

Date: December 2003

1. COUNTRY : Republic of The Gambia 2. TITLE OF PROJECT : Participatory Integrated Watershed Management Project 3. LOCATION : Selected sites in each of six Divisions

(North Bank Division, Western Bank Division, Lower River Division, Central River Division North, Central Division South and Upper River Division)

4. BORROWER : Republic of The Gambia 5. EXECUTING AGENCY : Department of State for Agriculture, The Quadrangle, Banjul Tel: (220) 20 11 87 ; Fax: (220) 22 89 98 E-Mail: psdosa@ qanet.gm. 6. PROJECT DESCRIPTION : The sector goal of the proposed project is

to reduce rural poverty and enhance food security. The project objective is to increase land productivity and reduce soil erosion. The following are the project’s expected outputs: the communities are trained and empowered in natural resources management; the production and productivity of the project area are increased on a sustainable basis; the access to market infrastructure and inputs is improved. The proposed project will have three components; i.e. (A) Capacity Building; (B) Watershed Development; (C) Project Management.

7. TOTAL COST : UA 12.09 million

Foreign exchange : UA 6.98 million Local cost : UA 5.10 million 8. NTF LOAN : UA 4.95 million 9. OTHER SOURCES OF FINANCE

IFAD : UA 4.95 million Government of The Gambia : UA 1.16 million

Beneficiaries : UA 1.03 million 10. DATE OF APPROVAL

NTF : May 2004 IFAD : March 2004

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11. PROBABLE COMMENCEMENT DATE AND PROJECT DURATION Commencement NTF : January 2005 IFAD : January 2005 Duration NTF : 6 Years

IFAD : 8 Years 12. PROCUREMENT OF GOODS, WORKS AND SERVICES

Procurement of goods, works and consultancy services financed by the NTF resources will be carried out in conformity with Bank Group Rules of Procedure. All consultants required for the project will be recruited through competition on the basis of a shortlist in accordance with the Bank’s “Rules of Procedure for the Use of Consultants”. Procurement of goods, works and consultancy services financed by the IFAD resources will be carried out following IFAD Procurement Guidelines

13. CONSULTANCY SERVICES REQUIRED

Short-term technical assistance will be provided: a Watershed Hydrologist; a Conservation Farming Specialist; a Monitoring and Evaluation Specialist; for Annual Auditing of the project, the Mid-Term Review and the Project Completion Report.

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CURRENCY AND MEASURES (November 2003)

UA 1 = GMD 39.0538 UA 1 = USD 1.43178 USD 1 = GMD 27.2764

FINANCIAL YEAR

1 January – 31 December

ABBREVIATIONS

ATI : Animal Traction Instructor CAP : Community Action Plan CBO : Community Based Organization CDA : Community Development Assistant CDD : Community-Driven Development CDO : Community Development Officer CMU : Central Management Unit COSOP : Country Operations and Strategic Opportunities Paper CRD : Central River Division DAC : Divisional Agricultural Coordinator DACs : Divisional/Municipality AIDS Committees DAS : Department of Agricultural Services DCC : Divisional Coordination Committee DCD : Department of Community Development DCO : Divisional Commissioner's Office DDCs : District Development Councils DEC : District Extension Centre DES : District Extension Supervisor DLFAs : District Lowland Farmer Associations DLS : Department of Livestock Services DOC : Department of Cooperatives DOP : Department of Planning DOSA : Department of State for Agriculture DOSHSW : Department of State for Health and Social Welfare DOSLG&L : Department of State for Local Government and Lands DRC : Divisional Review Committees DWR : Department of Water Resources EIS : Environmental Information System ESMP : Environmental and Social Management Plan EU : European Union FFS : Farmer Field Schools GEAP : Gambia Environmental Action Plan GDP : Gross Domestic Product HDI : Human Development Index HFS : Household Food Security HIPC : Highly Indebted Poor Country IFAD : International Fund for Agricultural Development IPM : Integrated Pest Management IRRI : International Rice Research Institute LADEP : Lowlands Agricultural Development Program

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LRD : Lower River Division MDFTs : Multi-Disciplinary Facilitation Teams MENR : Ministry of Natural Resources and the Environment NAC : National AIDS Committee NACP : National AIDS Control Program NARI : National Agricultural Research Institute NAS : National AIDS Secretariat NBD : North Bank Division NEA : National Environmental Agency NERICA : New Rice for Africa PARD : Participatory Adaptive Research and Development PAS : Potential Acid Sulphate (soils) PER : Public Expenditures Review PLAR : Participatory Learning and Action Research (extension approach) PRA : Participatory Rural Appraisal PRGF : Poverty Reduction and Growth Facility PRSP : Poverty Reduction Strategy Paper PSC : Project Steering Committee PSD : Program for Sustainable Development R&D : Research and development RDI : Rural Development Institute RFCIP : Rural Finance and Community Initiative Project SCDO : Senior Community Development Officer SDF : Social Development Fund SDRD : Support for Decentralized Rural Development Program SMCs : Site Management Committees SMSs : Subject Matter Specialists SPA-II : Strategy for Poverty Alleviation-II SSWC : Small Scale Water Control Project STU : Seed Technology Unit SWMU : Soil and Water Management Unit T&V : Training and Visit TANGO : The Association of Non-Governmental Organizations TOT :` Training of Trainers URD : Upper River Division VCT : Voluntary Counseling and Testing VDC : Village Development Committee VEC : Village Extension Centres VEWs : Village Extension Workers VFA : Village farmer association VISA : Village Initiative Support Activity VISACA : Village Savings and Credit Association WARDA : West African Rice Development Association WD : Western Division WDCs : Ward Development Councils WFA : Watershed Farmer Associations

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Gambia COMPARATIVE SOCIO-ECONOMIC INDICATORS

Year Gambia AfricaDevelo-

pingCountries

Develo-ped

Countries

Basic Indicators Area ( '000 Km²) 11 30 061 80 976 54 658 Total Population (millions) 2003 1.4 849.5 4,940.3 1,193.9 Urban Population (% of Total) 2003 34.2 39.2 40.4 76.0 Population Density (per Km²) 2003 118.4 27.0 61.0 21.9 GNI per Capita (US $) 2002 270 650 1 250 25 890 Labor Force Participation - Total (%) 2002 50.6 43.2 … … Labor Force Participation - Female (%) 2002 45.2 35.3 … … Gender -Related Development Index Value 2001 0.457 0.476 0.634 0.916 Human Develop. Index (Rank among 174 countries) 2001 151 n.a. n.a. n.a. Popul. Living Below $ 1 a Day (% of Population) 1998 59.3 45.0 32.2 …

Demographic Indicators Population Growth Rate - Total (%) 2003 2.7 2.2 1.5 0.2 Population Growth Rate - Urban (%) 2003 5.0 4.1 2.9 0.5 Population < 15 years (%) 2003 40.5 42.4 32.4 18.0 Population >= 65 years (%) 2003 3.6 3.3 5.1 14.3 Dependency Ratio (%) 2003 79.2 86.1 61.1 48.3 Sex Ratio (per 100 female) 2003 98.1 99.0 103.3 94.7 Female Population 15-49 years (% of total population) 2003 24.0 24.0 26.9 25.4 Life Expectancy at Birth - Total (years) 2003 54.5 50.7 64.5 75.7 Life Expectancy at Birth - Female (years) 2003 55.8 51.7 66.3 79.3 Crude Birth Rate (per 1,000) 2003 35.1 37.0 23.4 10.9 Crude Death Rate (per 1,000) 2003 12.5 15.2 8.4 10.3 Infant Mortality Rate (per 1,000) 2003 78.9 80.6 57.6 8.9 Child Mortality Rate (per 1,000) 2003 131.0 133.3 79.8 10.2 Maternal Mortality Rate (per 100,000) 1992 1,000 641 491 13 Total Fertility Rate (per woman) 2003 4.7 4.9 2.8 1.6 Women Using Contraception (%) 1995 12.0 … 56.0 70.0

Health & Nutrition Indicators Physicians (per 100,000 people) 1997 3.4 36.7 78.0 287.0 Nurses (per 100,000 people) 1997 12.5 105.8 98.0 782.0 Births attended by Trained Health Personnel (%) 1990 44.0 38.0 58.0 99.0 Access to Safe Water (% of Population) 2000 62.0 60.4 72.0 100.0 Access to Health Services (% of Population) 1985 90.0 61.7 80.0 100.0 Access to Sanitation (% of Population) 2000 37.0 60.5 44.0 100.0 Percent. of Adults (aged 15-49) Living with HIV/AIDS 2001 1.2 5.7 … … Incidence of Tuberculosis (per 100,000) 1999 119.5 105.4 157.0 24.0 Child Immunization Against Tuberculosis (%) 2000 97.0 63.5 82.0 93.0 Child Immunization Against Measles (%) 1996 85.0 58.2 79.0 90.0 Underweight Children (% of children under 5 years) 1996 26.2 25.9 31.0 … Education Indicators Gross Enrolment Ratio (%) Primary School - Total 2000 82.0 80.7 100.7 102.3 Primary School - Female 2000 78.0 73.4 94.5 101.9 Secondary School - Total 2000 37.0 29.3 50.9 99.5 Secondary School - Female 2000 31.0 25.7 45.8 100.8 Primary School Female Teaching Staff (% of Total) 1999 29.1 40.9 51.0 82.0 Adult Illiteracy Rate - Total (%) 2001 62.3 37.7 26.6 1.2 Adult Illiteracy Rate - Male (%) 2001 55.0 29.7 19.0 0.8 Adult Illiteracy Rate - Female (%) 2001 69.2 46.8 34.2 1.6

Environmental Indicators Land Use (Arable Land as % of Total Land Area) 2001 19.5 6.0 9.9 11.6 Annual Rate of Deforestation (%) 1995 0.9 0.7 0.4 -0.2 Annual Rate of Reforestation (%) 1981-90 … 4.0 … … Per Capita CO2 Emissions (metric tons) 1997 … 1.1 2.1 12.5

Source : Compiled by the Statistics Division from ADB databases; UNAIDS; World Bank Live Database and United Nations Population Division. Notes: n.a. Not Applicable ; … Data Not Available.

vi Project Matrix

The Gambia: Participatory Integrated Watershed Management Project (PIWAMP)

Narrative summary Objectively Verifiable Indicators Means of Verification Key Assumptions SECTOR GOAL Reduced poverty and enhanced household food security.

- Incomes of lowland farmers increase by 129% from 1,574GMD by PY8 - Incomes of upland farmers increase by 28% from 3,593 GMD by PY8 - Lowland & Swamp production increased by 237% from 12, 584 MT by PY8. - Upland production increased by 32% from 2,122 MT by PY8. - Food import reduced by 25% by PY8.

- Depts of Statistics (ASRE, DOP, etc.) - DOSFEA & DOSA Reports - M&E Reports.

PROJECT OBJECTIVE Increased land productivity and reduced soil erosion on a sustainable manner.

-Lowland rice yield increase from 1.3 to 3.5 MT / ha by PY4; -Upland rice yield increase from 1.1 to 1.7 MT/ha by PY4; - Total production will increase at least: by 344 MT of uplands rice; 5,900 MT of sorghum and millet; 3,000 MT of groundnut; 2,000 MT of maize; and 31,000 MT of Lowland and Swamp rice by PY8.

- Annual statistics on crop outputs and M &E Progress Reports. - Supervision reports/Progress Report/MTR. - Beneficiaries Assessments/MTR/ PCR.

- Government priority to address food security is maintained. - Marketing arrangements are efficient and prices of crops remain steady.

PROJECT OUTPUTS 1) Capacity Building - Communities sensitised, trained and empowered - Service providers, staff and beneficiaries trained 2) Watershed Development - Lowland Water Management schemes and Swamps - Uplands management and Conservation farming - Integrated water management - Nurseries and Community Forestry management - Livestock water supply and market infrastructure

1) Capacity Building - Groups: 40 sensitization workshops, 200 Awareness campaigns, 200 Training sessions in participatory approach, 27 Sessions in Gender issues and 8 PLARs held. - In service: 12 courses each held in Land use mapping, Soil & water conservation and Conservation farming; 6 courses each held in PRA, Forest and livestock management; 3 courses held in Gender analysis; 24 courses held in Adaptive research and 2 in Seed multiplication. One 10 days Study tour and AMTA training organized. - Farmers: 16 courses each held in Soil Water and Farming conservation techniques; as well as in Community forestry and Rangeland management techniques. 125 farmer to farmer field visits organized. - One HIV/Aids and one Malaria campaigns organized. - Equipment acquired. - Rehabilitation of Jenoi Training Center. 2) Watershed Development - Incremental crop production by PY 8 of: Early Millet/Sorghum: 1,048 tons; Maize: 318 tons; Upland Rice: 53 tons; Lowland rice:26,580 tons. - By PY6: 1,800 km of contour bunds and 3,600 km of grass plantation realised; 120 no. gullies controlled; 120 km of causeways and bridges executed; 4,207 m of spillways constructed and 3,220 m upgraded. - 3 buildings rehabilitated - Increase in forest cover of 1,150 ha by PY6; 5 nurseries established. - 15 no. water points improved by PY6 - Spot rehabilitation of 100 km of village roads by PY6.

- Project Progress Reports - Annual work Plans - Supervision Reports - Ditto - Ditto

- Extension services are effective. - - Farmers are willing to participate in training programs. - Improved seed is available to farmers at affordable prices and availability of inputs on time. - Communities willing to participation in maintenance works.

vii 3) Project Management -Project management established and operational - M&E - Impact Assessment

3) Project Management - IWMP and LADEP Project Management co-ordinated - Consultant services procured, project staff hired; - Project reporting procedures in place and implemented - Project progress reports, audits and MTR are on time and in line with Bank procedures. - Performance of consultancy is satisfactory (throughout the project life). - Goods are procured timely and in alignment with Bank guidelines (throughout project life).

- Audit Reports - Procurement Reviews.

COMPONENTS/ACTIVITIES 1) Capacity Building - Mobilise, sensitise and train communities - Train extension staff - Provide support to SWMU - Provide support to NARI - Provide support to DOP - Provide support to NARI - Provide support to DAS - Provide support to NEA - Provide support to FD 2) Watershed Development - Prepare community action plans - Implement soil and water conservation works; - Enhance conservation farming; - Increase horticulture and livestock production; - Develop Forestry and rangelands; 3) Project Management - Recruitment of project staff and establishment of agreement with participating organisations/service providers;

- Procurement of vehicles, motorbikes and office supplies;

- Prepare reports and conduct audit; - Undertake mid-term review

Project Financing (in million UA) Source F.E L.C Total NTF 0.681 4.265 4.945 IFAD 2.228 2.720 4.948 GOTG 0.00 1.160 1.160 Beneficiaries 0.00 1.032 1.032 Total 6.985 5.100 12.085 2. Budget (in million UA) Capacity Building 3.875 Watershed Development 5.702 Project Management 1.224 Total Base cost 12.085

Human Resources

Staff No. T.A. No. 3 3. Time 6 years (2005-2010)

- Project reports - Quarterly progress reports - Supervision Reports. - Audit Reports - Procurement Reviews.

- Extension staff and other resources available. - PMU adequately staffed and appointed/trained staff retained. - Consultants with good performance.

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EXECUTIVE SUMMARY Project Background: The upland watershed ecosystem has been disturbed and degraded largely due to deforestation and extended periods of shifting cultivation. This has come as a result of pressure on land resources, high population growth rate and density, high inmmigration rates and high demand in general for increasing cultivated area under food and export crops. There is evidence of reduced water infiltration; high water runoff rates; drying of inland valleys and river tributaries and less water availability for crops and livestock. In the lowlands, where many investments in agriculture take place, siltation and sedimentation are threatening the sustainability of the works. Lowland rice still offers interesting development opportunities for the rural poor and demand from the LADEP target group for water retention and tidal access activities remain high. Further, Uplands farmers are under considerable pressure from shortage of land due to increasing populations and declining soil fertility. Consequently, the Bank Group and IFAD, following official invitations received from the Government, prepared separate integrated watershed management projects in June 2002 and June 2003 respectively; and with some overlapping appraised a Participatory Watershed Management Project (PIWAMP) under November/December 2003. Purpose of the Loan: The NTF loan of UA 4.95 million, amounting to 41% of total project cost estimated at UA 12.08 million, will be used to finance 100 % of the foreign exchange (UA 4.265 million) and UA 0.681 million or 13.35% of the local costs. Sector Goal and Project Objective: The sector goal of the proposed PIWAMP is to contribute to poverty reduction and increased household food security. The project objective is to improve and sustain agricultural productivity and reduce soil erosion. Brief description of the project’s Outputs: The project will focus on: (A) Capacity Building; (B) Watershed Development; and (C) Project Management. Project Cost: The total project cost is estimated at UA 12.085 million out of which UA 6.985 million (58%) will be foreign currency and UA 5.100 million (42%) will be in local currency. Source of Finance: The Nigerian Trust Fund, the International Fund for Agricultural Development; the Government of The Gambia and Beneficiaries will finance the project. Project implementation: The Department of State for Agriculture, DOSA will be the executing agency. The NTF project will be implemented over a period of six (6) years, whereas the IFAD project will span over an eight (8) years period. Conclusion and Recommendations: The proposed project is a priority, which is consistent with the development objectives of the Government and is expected to contribute to the sustainable management of the natural resource base and substantially to the increase of food production and farm incomes, which would in the long term, contribute to improve household food security and reduce poverty. The project is technically feasible, economically viable, socially desirable and environmentally sustainable. It is in line with the Bank Group’s strategy for agricultural sector development for The Gambia. It is recommended, therefore, that a loan not exceeding UA 5.00 million be granted to the Government of The Gambia to finance the implementation of the project subject to the conditions specified in the Loan Agreement.

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1. ORIGIN AND HISTORY OF THE PROJECT 1.1

1.2

1.3

1.4

The Gambia has an area of some 11,300 square kilometers, embedded within the Republic of Senegal on the Atlantic Coast in West Africa. The Gambia is bisected by the River Gambia forming the North and South banks and extending eastward from the sea for some 480 kilometers. The country lies in the Sahelian belt with a Sudano-sahelian type of climate characterized by a long dry season between October and June (7 Months) and a short rainy season from mid-June and continues to early October. The average annual rainfall is 961 mm. There has been a steady decline in rainfall for the past 40 years, which still continues and which is causing increased salinity in the lowlands and increased aridity in the uplands. With the economy heavily dependent on rain-fed agriculture, these adverse climatic conditions have registered negative effect on agricultural production, eroding farmers’ productivity and their purchasing power.

The upland watershed ecosystem in The Gambia has been disturbed and degraded largely due to deforestation and extended periods of shifting cultivation. This has come as a result of pressure on land resources, population growth rate (2.7% per annum) and high density (118.4 persons per square km), high immigration rates and high demand, in general, for increasing cultivated area under cash and export crops such as groundnuts. Reduced water infiltration, high water runoff rates, drying of inland valleys and river tributaries and less water availability for crops and livestock have been observed. In the transition areas, where many of the family compounds are situated, there are dramatic signs of gully and sheet erosion, while in the lowlands where most of the investments in agricultural production take place, siltation and sedimentation threaten their sustainability.

During the preparation of the Lowland Agricultural Development Programme (LADEP) in 1995, co-financed by the Bank and the International Fund for Agriculture Development (IFAD), investments both in the lowlands and the uplands were contemplated. Although it was decided to focus, at first instance, on the Lowlands, the Government has continued to stress the need for assistance in developing the uplands, given the continued unsustainable farming practices in these areas on constant degradation. However, due to small allocation of funds to the Gambia, the priority was then given to the lowlands.

The Bank undertook a sector wide identification mission in the country from 01 to 12 August 2001. The objective of that Mission was to identify projects in the Agricultural Sector with a view of building-up the Bank’s pipeline of projects for its 2002/2003 lending program. The Mission identified five possible project/study proposals, all of which were considered a priority for the Government. A proposed Integrated Watershed Management Project (IWMP) in the uplands was considered of high priority as it sought to slowdown the process of resource degradation mainly through erosion control. The Government in fact had already requested the Food and Agriculture Organization (FAO) from its Technical Cooperation Program to support a similar initiative in one specific watershed. However, as a result of changing priorities and the inadequacy of ADF funds available for the country, this proposal was not considered for funding until now.

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1.5 Following the identification mission, the Bank considered the proposed project very critical to poverty reduction and therefore sent a mission to prepare the project. The preparation mission was in the field from 05 to 21 June 2002. The proposed project was appraised by the Bank between 17 and 31 August 2002, but could not be presented to the Board as the Gambia had exhausted its ADF IX funds allocation. Following a series of consultative meetings between the government and the IFAD Country Operations on the Strategic Opportunities Paper (COSOP) for the Gambia, an expanded project was formulated by an IFAD/FAO mission in mid-2003. Finally, following a meeting held in Tunis in October 2003, between ADB, IFAD and representatives of the GOTG, a joint IFAD and ADB appraisal mission was fielded in November 2003. What follows below constitutes the findings of the Preparation and the Appraisal Missions. 2. THE AGRICULTURAL SECTOR 2.1 Salient Features 2.1.1 The Gambian economic performance has deteriorated significantly in 2003, due to the uncertainty associated with the release of the programmed development assistance from key donors, following the PRGF being off-track. The performance of the economy was further worsened by the slow growth in re-export trade and the poor output from agriculture following the poor rains experienced in 2003. The combined effect of these problems slowed down the growth rate of real GDP to around 3.5 percent in 2003 2.1.2 As indicated above, agriculture currently accounts for some 29 percent of GDP and employs more than 73 percent of the labor force. It is the principal source of livelihood for the rural population and for the majority of households below the poverty line. The livestock sector contributes 24 percent to agricultural GDP, groundnuts 23 percent, other crops 43 percent, fisheries 3 percent and forestry 3 percent. It is estimated that there are about 305,000 hectares (55 percent of the total arable land area of 558,000 hectares) harvested annually by about 69, 100 farmers. At present, only 1500 ha of land are under irrigation. 2.1.3 The most widely grown crops (2001/2002) are: groundnut (45.5 % of total acreage); sorghum (8.6%); maize (5.6%); millet (32%), sesame (2.3 %); upland rice (2.9%); swamp rice (2.3 %). In 2001/02, National Agricultural Sample Survey by the Department of Planning, the total paddy production was estimated at 35, 900 tons, of which 11, 600 tons were upland rice, 10, 900 tons were swamp rice and 13, 400 tons were irrigated rice. Average paddy yields were estimated at 1.4 tons per hectare (including irrigated rice). The depreciating currency enhances the competitiveness of local rice against imports. Domestic grain production meets only about 50 percent of national requirements. Food imports (commercial and food aid) have increased from 93,100 tons in 1995-96 to 112,400 tons in 1998-99. Without production increases, cereal imports will need to triple by 2015. 2.1.4 Farming Systems: The Gambia can be divided into two major agro-ecological units defined by altitude: (i) the lowlands including the western lowlands and, the central and Eastern lowlands, (ii) the uplands. Upland and lowland cropping systems are part of a single mixed crop-livestock farming system, practiced by nearly all households. Within each household, upland crop production tends to be a separate enterprise from lowland rice production, managed by different production groups (male or female) who do not pool labor or capital.

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2.1.5 Livestock: The livestock contributes about 24% of agricultural GDP, up from 4% in 1983 but this under-emphasizes the resource use as livestock production system productivity is low. Men are mostly responsible for the cattle while women are responsible for small ruminants and poultry. Cattle are often claimed to be held for social prestige but a recent social impact assessment showed income as the top ranking by both men and women. This further indicates the extent to which farming systems are becoming more income oriented. The livestock production comprises well-adapted low productivity trypano-tolerant strains of cattle (300,000), sheep (155,000), goats (214,000), poultry (740,000 of which 95% are local breeds) and pigs (14,000). 2.2 Land Tenure 2.2.1 Two systems of land tenure coexist - the traditional and the modern. At district level, traditional authority on land tenure matters rests with the District Chief (seyfo), who is responsible for allocation of unclaimed land, settlement of disputes between villages and guiding the affairs of his constituency. At village level, temporal authority rests with the alkalo (village head) and religious authority with the imam, and is supported by a council of elders. The first two posts are elected, but usually only individuals from a master or founder lineage fills them. 2.2.2 Under the modern local government system, authority for land tenure issues at District level is vested in the District Commissioner, of the Ministry of Local Government (MOLG), assisted by an elected local government area (LGA) council, composed of representatives of electoral wards. At ward level there is elected Ward Council composed of elected representatives of villages, supported by community development assistants (CDAs) of the MOLG. Village level planning is vested in an elected Village Development Committee (VDC), but in many villages the only authorities are the traditional ones, as the VDCs have yet to be organized. 2.2.3 The Land Act states that ultimate rights to land are vested in the District Authorities and that the "occupation and use" of land is governed by customary laws. Ownership rights are established as follows: (i) virgin land outside village boundaries belongs to the District and permission to clear land is needed from the chief; (ii) virgin land within village boundaries belongs to the village and permission to clear must be given by the village head; (iii) an individual, compound or lineage may establish ownership rights to land by the act of clearing and bringing it under cultivation. In many parts of The Gambia, nearly all land suitable for cultivation has already been cleared and ownership rights are well established. 2.2.4 Cleared land can be owned by lineages and communities of relatives (Compounds) or individually owned. Upland is either owned by individual men or is controlled by compounds for the use of men, whereas rice land is either owned by individual women or is compound land under the control of male compound heads but is actually used by women. 2.2.5 Because of their longer residence in the village, founding lineages invariably establish claims to larger areas of all types of land than later settlers. Although the practice of lending land acts as a mechanism of redistribution, it does not operate equitably since rich immigrants who lend money to the elders of the founding lineages are able to borrow larger areas of good land than the poor, particularly if they are of low social status.

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2.3 Poverty Status 2.3.1 Poverty is widespread in The Gambia, accounting for 71 percent of total poverty nationwide, and is mainly a rural phenomenon, with 47 percent of the population classified as poor and 30 percent as extreme poor in 1998. Income distribution is skewed, with an appreciable gap between rural and urban areas. Some 37 percent of households and 54 percent of the population in the rural areas live below the food poverty line, compared to 23 percent and 33 percent respectively in urban areas. The prevalence rates vary considerably between the administrative Divisions. The highest level of extreme poverty (about 50 percent) is found in Lower River Division and Upper River Division; the North Bank Division and Central River Division have slightly lower proportions of extreme poor (about 45 percent). The prevalence in Western Division is considerably less at 20 percent (due mainly to access to off-farm employment opportunities in the GBA). 2.3.2 About half the rural poor have access to potable water and less than 10 percent have improved latrines. Although the number of children at school is increasing in the country, adult literacy rates are low, at 30 percent for women and 45 percent for men. Most of the rural population does not have adequate access to health services. Life expectancy is 54 to 55 years; and child mortality is high (131 per 1,000), while infant mortality is 79 per thousand. This partly explains why the proportion of rural youth remaining in the villages is declining. The GOTG places high priority on keeping the youth in the villages or encouraging their return to rural areas. The Gambia is classified as a Highly Indebted Poor Country (HIPC) and is eligible for debt relief under the enhanced HIPC initiative. 2.3.3 The UNDP’s 2001 Human Development Index (HDI) ranks The Gambia 149th out of 161 countries, with a HDI of 0.396. With a GDP of US$320 per capita, the Gambia is one of the poorest countries in the world. The population is growing at 2.7 percent per annum, especially due to a high birth rate and is expected to double in the next 15 years. About 63 percent of the population is rural with 37 percent urban. Annual urban population growth is around 8 percent due to rural-urban drift and internal migratory flows into Western Division and the Greater Banjul Area (GBA). The population is divided in an estimated 125000 households with 54400 rural households. Average household size is 5-6 people in urban areas and 12 in rural areas. 2.4 Gender Issues 2.4.1 Women in The Gambia make up 51% of the population, the majority of whom dwell in the rural areas and are engaged in rural agriculture. It is estimated that women head 18% of the rural households. They represent 50% of the agricultural labour force, 70% of the unskilled agricultural labour force and produce about 40% of the total agriculture production. In the area of crop production women produce 99% of up-land rice. They contribute substantially to the production of both food and cash crops. Traditional lowland rice is mainly women's responsibility. Women seldom assist men in weeding and harvesting upland crops and men rarely assist women with lowland crops. Women and young males can have personal plots. 2.4.2 The main forms of outside labor used in lowland rice production are the married women's kafo (ages 19-45) and reciprocal exchange labor. Kafo groups contract to do specific work for farmers in exchange for cash payment (including a meal). The groups' earnings are

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pooled and used for joint projects. These constitute the organisational framework in which they pool their labour resources for hire in agricultural and other activities in order to benefit from agricultural credit provided by village based credit associations. Membership is broad based. Women also form informal 5-10 member reciprocal labor groups of friends and relatives who help one another on each other's fields in turn. There is no payment but the crop owner is expected to provide lunch and kola nuts. 2.4.3 The Government, in acknowledgement of the vital role of women in the socio-economic development process, has taken some measures to correct the disadvantaged situation of women. The National Women’s Council Act, enacted in 1980, established National Women’s Council to advice government on women’s affairs and a Women’s Bureau established to implement decisions of the Council. The National Policy for Advancement of Gambian Women focuses on mainstreaming women’s issues into the national development process and setting goals and strategies for enabling women to have equal access to education, adequate health care, finance, employment opportunities and bridge gaps of traditional gender based inequalities and deprivation. The main activities supported by the Women’s Bureau are data collection, research and analysis and dissemination of information; monitoring women’s programmes and providing backstopping support to other institutions. The strategy is to provide a link between the national, divisional, district, ward and village level by registering women’s groups, whose representatives are selected to the National Council. Within the Department of State for Agriculture, this responsibility has been assigned to the Department of Cooperation. The Department of Community Development (DCD), which is housed under the Department of State for Local Government assumes the role of gender awareness at community level. 2.4.4 Agriculture activities are divided between cash crops (groundnuts and vegetables) and food crops (coarse grains and rice). The gender division of labor in the Gambia changed throughout the years and was based on individual agricultural tasks. The commercialization of groundnuts lead to the change that men grew groundnuts and the coarse grains on upland fields during the rainy season, because the groundnut production is the main source of foreign exchange and therefore the men had control on most of the cash income through agriculture. The women, on the other hand, planted in low-lying areas; they grew rice in the rainy season and vegetables in the dry season. The produce is for home consumption only. There are many changes within the family now that women grow cash crop and there is a significant increase in women’s income from cash cropping. 2.4.5 The upland areas are owned and cultivated by men, but the supervision and day-to-day operations are carried out by women. In the low-lying areas, women manage their own land themselves, or with a small group of female relatives. They get their land mostly from one-time cash payment to the landholders, and this is seen by the landholders as a temporary arrangement. Also the majority of plots changing hands were passed matrilineally, from mother to daughter.

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2.5 HIV/AIDS Issues and Vector borne diseases 2.5.1 HIV/AIDS prevalence rates from reported cases are relatively low (1.2 percent for HIV-1 and 0.9 percent for HIV-2), however the rapid increase of HIV-1 (from 0.1 percent in 1990 to 1.2 percent in 2001) is cause for concern. The adult rate (age 15–49) for HIV-1 was reported to be 1.6 percent in 2001.The prevalence of HIV/AIDS has increasingly become a development challenge, which has to be tackled at the community level through vigorous campaigns and an improved health care system. With an estimated 32,000 persons living with AIDS in the country (2.2% of total population), the HIV/AIDS epidemic has not yet reached the alarming proportions it has in other West African countries in terms of numbers. However, what is alarming is the estimate that the number of HIV infected persons has increased by 100% in the last decade from 1.1%. With the rapid growth of population, growing urbanisation, immigrants from neighbouring countries, tourism and increase in number of sex workers, massive efforts are required to enhance the effectiveness of measures against the epidemic. 2.5.2 The National AIDS Secretariat is based in the Office of the President. The Aids Control Programme is implemented through Divisional Health Teams. Under the programme, paramedics such as traditional birth attendants and village health workers are trained. The programme is implemented in collaboration with NGOs such as Action Aid, RAID (African Network for information and action against Drugs), Agency for the Development of Women and Children ADWAC, The Gambia Red Cross Society GRCS. The focal point for the programme under the Department of State for Agriculture lies in the Department of Agricultural Services. 2.5.3 A number of possible vector borne diseases were investigated during the 2003 missions: malaria, dengue, yellow fever, schistosomiasis (bilharzia), onchocerciasis, trypanosomiasis and filaria. The Department of State for Health and Social Welfare (DoSHSW) quickly ruled out onchocerciasis on the grounds that the water flow in the River Gambia is slow, which makes the risk of onchocerciasis unlikely, as its vector requires a fast flow to breed. They also ruled out trypanosomiasis, which hardly exists any more in the Gambia, because the local N'dama cattle are trypanotolerant. Schistosomiasis (bilharzia) continues to be problem but is only found in the backswamps of URD. According to the DOSHSW, few cases of schistosomiasis are reported in the Gambia, which is a significant improvement on what was reported by the formulation mission for LADEP seven years earlier. 2.5.4 DOSHSW regards mosquitoes to be the vector that should receive highest priority in any efforts aimed at controlling vector-borne diseases and recommended that the new project contribute to the national campaign aimed at increasing household usage of mosquito nets treated with repellent. However, LADEP’s experience and the Missions inquiries among villagers conclude that the risk that project’s interventions could increase the prevalence of vector borne disease is minimal. This is because the project impounds water only for the growing period required for rice production, and the stagnant water evaporates before the crop is harvested.

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2.6 Environmental Issues 2.6.1 The depletion of natural resources in The Gambia has reached serious proportions. Shortage of land due to population pressure and recurrent droughts has led to the degradation of the Sudano-type Savannah, which once covered most of the country, with consequent soil degradation and erosion, and overall loss of agricultural productivity. National crop production statistics illustrate the loss of soil fertility and a declined productivity of rice and groundnuts during the last two decades. During the seventies and eighties, the rainfall was reduced to between 600 and 800 mm from normally between 1000-1200 mm. A result of the unpredictable rainfall, great annual variations are observed in total production of all crops. Crop production, including subsistence farming, decreased from 28.4% in 1983/84 to 22.3 in 1995/1996. According to the National Agricultural Sample Surveys (NASS), groundnut yield decreased from 1,172 kg/ha to 962 kg/ha, Swamp rice yield decreased from 1,774 kg/ha to 1,232 kg/ha. 2.6.2 The destruction of riverine wetlands has resulted in erosion and siltation of the Gambia River. The water flow has also been reduced causing more than half of the total length of the river to be affected by saltwater intrusion from the Atlantic Ocean. The coastal zone is the most densely populated and the Greater Banjul Area suffers from overcrowding, inadequate sanitation, over-mining of beach sand and other problems associated with uncontrolled urbanisation. Environmental sensitive areas in The Gambia include the rainforests, savannah and coastal areas. The country has the north-western rainforest in Africa, which is found only in a 45 ha area in Abuko Nature reserve. It is threatened due to soil salinisation. The Savannah has been almost entirely degraded or converted to agricultural land. 2.6.3 Environmental institutions have a relative long history in The Gambia. In 1981, the country was one of the first in Africa to establish a Ministry of Natural Resources and the Environment (MNRE). The National Environment Agency (NEA) is responsible for the implementation of the Gambia Environment Action Plan (GEAP), which is the main national policy framework for the sustainable management of the natural resources and the environment. The GEAP aims at integrating environmental concerns into the country’s overall social and economic development strategy. It addresses three main areas; i.e. natural resources, energy and environmental health. It was developed and adopted in 1992/1993 in a highly participatory manner. As part of the GEAP, an Environmental Information System Strategy was developed within the NEA as the focal point to co-ordinate its implementation. This strategy has identified the need for up-to-date and reliable environmental information for decision making and sustainable development planning across various sectors. 2.7 Institutional Framework 2.7.1 The Department of State for Agriculture: DOSA is responsible for the crops and livestock sub-sectors. Its primary roles are formulation of appropriate agricultural policies and planning, and monitoring and evaluation within the overall national development framework. DOSA comprises, in addition to its Central Management Unit (CMU), the following Departments: (i) Agricultural Services (DAS) made up of Extension, Food and Nutrition, Soil and Water Management (SWMU), Agricultural Pest Management, Agricultural Communications and Horticulture Units; (ii) Livestock Services (DLS); (iii) Planning (DOP), and (iv) Co-operatives (DOC). The Secretary of State for Agriculture also has responsibility for the National Agricultural Research Institute (NARI), and The Gambia College.

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2.7.2 Department of Planning (DOP): This DOP department provides policy advice to the DOSA, and helps in identifying and preparing agricultural investment programs and projects. It collects extensive agricultural data and its national agricultural data center, conducts national agricultural sample surveys and publishes a statistical yearbook of Gambian agriculture. In addition, it monitors ongoing investment operations and conducts selected evaluation studies. It has four sections namely: Project Planning; Policy Formulation; National Agricultural Statistics; and Monitoring and Evaluation. The Department has 3 M.Sc. Specialists, 17 B.Sc. / Diploma officers, 23 supporting staff and 70 field enumerators working under the Statistics Center. The capacity of the DOP is limited because staffs, though qualified, need additional training to cope with their functions. Particularly, the M&E Section, which works directly with LADEP, has insufficient number of staff; as a result, DOP has not been able to fully meet its obligations, due to a shortage of suitably qualified staff and operating funds. The Department also lacks modern office equipment and logistical support. 2.7.3 The Department of Agricultural Services: DAS is the largest department in DOSA responsible to provide crop and livestock extension services using the Training and Visit (T&V) system of extension to the farmers. The Department is divided into six Agricultural Divisions, covering the entire country. The staff of a Division is composed of a Divisional Agricultural Coordinator (DAC), his assistant and a Subject Matter Specialists (SMS) in crop production, pests and diseases, communications, and food and nutrition. The agricultural divisions are divided into 26 District Extension Centers (DEC), headed by 26 District Extension Supervisors (DES). In each DEC, there is an Animal Traction Instructor (ATI) and an assistant ATI. Extension services are provided by Village Extension Workers (VEWs), in charge of Village Extension Centers (VEC). In 2003, there were 26 DECs, and 78 VEWs providing services to about 2,069 Villages. The VEWs receive regular training from SMSs and research staff from NARI. 2.7.4 The Department has 161 staffs, 8 with advanced degrees in extension services, 36 subject matter specialists with a minimum of B.Sc. Degree, 117 extension workers and supporting staff. DAS is one of the implementing institutions of LADEP, contracted to provide extension follow-up to farmers in project sites. However, due to lack of funds for transport and field allowances, DAS’s performance has been low in the delivery of extension services to the Farmers. Thus, for future projects, there is need for capacity building of DAS in terms of adequate logistical support, including equipment and extension materials, for staff mobility to cover the country. It also needs more training programs for its staff at levels. 2.7.5 The Soil and Water Management Unit: The SWMU is a specialized unit of DAS responsible for addressing soil and water management and conservation issues in the country. Its services include field investigations and surveys, design and planning, and executing specific civil works under on-going projects. SWMU comprises 4 sections, namely; Agronomy, Engineering, Monitoring and Evaluation and Soil Survey and Land Evaluation Sections. These sections together form the basis for a multi-disciplinary approach to soil and water conservation. The unit operates from its main office at Yundum and temporary field stations in the cities of Sapu and Basse during project execution.

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2.7.6 SWMU through its long time engagement in soil conservation and water management on all forms of terrain in the country has gathered a wealth of experience to be able to handle soil and water conservation works of any magnitude. SWMU has been the key partner in LADEP implementation, under which it performed very well on engineering and community participation, satisfactorily on soils and agronomic follow-up. The unit collaborates with NGOs and other donor organizations like EDF, UNDP, and FAO etc, involved in land management activities for sustainable agricultural use. Since its establishment in the late 1970s, the unit has registered remarkable successes in the lowlands using funds from USAID, GTZ, as well. Significant achievements have also been made on erosion control and gully stabilization in the upland through funding from USAID, EDF, NGOs, and Rural Finance and Community Initiative Project. 2.7.7 The Unit has 57 staff, 12 of which are professional/technical with a minimum of B.Sc. However, there are currently only six highly trained personnel within the unit. A serious issue for future project design is that most of its staff (including all senior officers) will reach retirement age in the next 8 years, and therefore, there is an urgency to ensure that qualified professionals are now trained to ensure their replacement. The unit has also more additional needs in terms of logistical support and office equipment, advanced and refresher courses to upgrade the knowledge of its staff. 2.7.8 The National Agricultural Research Institute: NARI has 12 research programs on cereal crops, roots and tubers and agro-forestry. It also includes the Seed Technology Unit (STU) based in Sapu Research Station, and a network of experimental sites. The STU is responsible for the production of foundation seed and for the multiplication of registered and certified seed. STU has adequate capacity to meet the seed requirement. The unit is equipped with seed production plots, a small seed cleaning plant (1 ton/hour), and a seed laboratory. 2.7.9 It co-operates closely with other national and sub-regional projects including: International Crop Research Institute for Semi-Arid Tropics; International Institute for Tropical Agriculture; Semi-Arid Food Grain Research and Development; and West African Rice Development Association (WARDA). After the termination of World Bank support under ASSP, IFAD has been one of NARI’s main sources of outside finance, through LADEP and RFCIP. The research Institute has 12 researchers 2 with PhDs. Degree, 10 with M.Sc. Degree and 23 research assistants and supporting staff. The large magnitude of the national research assignment, compared with the available human resources, indicates that NARI has a limited implementation capacity. This has been one of the lessons learnt during the implementation of LADEP. The shortage of funds to ensure staff mobility was one of the main draw-back of NARI’s effective contribution to the dissemination of rice varieties and agronomic practices under LADEP. 2.7.10 The National Environmental Agency (NEA): In 1987 GOTG passed the National Environment Management Act and established the Ministry of Natural Resources and the Environment (MENR) to develop policies and coordinate activities in the sector. In 1993, the autonomous National Environmental Agency (NEA) was set up under the Office of the President, giving its higher status and a broader mandate to protect existing forest and vegetative cover, conservation of coastal wetlands and reduction of land degradation and soil erosion in upland areas. NEA also has a regulatory function as it directly enforces environmental legislation.

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2.7.11 The structure consists of an Executive Director, Deputy Executive Director, a Coordinator for Technical Services Network, and a Coordinator for Inter-Sectoral Network. For the Technical Services Network, there are one officer for the Environmental Impact Assessment (EIA), one officer for the Ozone environmental Impact Survey, one officer for the Hazardous Chemicals and Pesticides Management and Control (HCPMC) and one officer for the Environmental Quality. For the Inter-Sectoral Network there is an environmental officer for Agriculture and Natural Resources, an environmental officer for Costal and Marine Environment, an environmental officer for Environmental Education and Communication and an environmental officer for Environmental Information Systems. NEA also includes 18 support staff (Record clerks, Secretaries, Cleaners, Drivers, Security men etc.). 2.7.12 NEA has no countrywide branches but rely on officers to cover the whole country and collaborate closely with government divisional offices, NGOs and local development committees. Government provides limited subventions for NEA operations. Currently NEA is facing some difficulties in terms of capacity: 1) human Resources: problems acquiring qualified personnel and training on environmental management; and lack of incentives to maintain experienced professionals, 2) Inadequate equipment, mobility and working space. Under LADEP, NEA was responsible for environmental impact assessment as well as some environmental studies conducted in connection with the Master Plan for Lowland Development. NAE’s low performance in the delivery on time of the LADEP-related environmental impact assessment was mainly due to a shortage of suitably qualified staff and operating budget. 2.7.13 The Village Savings and Credit Associations: VISACAs are rural finance institutions initiated in the 1980’s, by DOSA as a mechanism for encouraging farmers at the Jahally/Pacharr Smallholder Rice Project (co-financed with IFAD) to save their increased incomes resulting from the project. Following their considerable success over recent years, the associations are now fully supported by the Central Bank as rural financial institutions. The VISACA approach is community-driven with target groups playing the lead role in the affairs of the village “banks”, which they manage. The Village General Assembly, which is responsible for defining all credit policies of the bank, selects cashiers, a management committee and internal auditors. The management committee is responsible for all loan appraisals, disbursements and loan follow-up and recovery. Membership is not restricted to members of the immediate village but open to all upon the payment of a GMD 10-20 membership fee so individuals in nearby and satellite villages can also become members. Women make up half the membership of the VISACAs and the VISACA Management Committees. 2.7.14 The Village Development Committees: The VDCs are community-based organizations. In most villages, a (VDC) as proposed in the GOTG decentralization policy is in place and in some cases the VDC has become a de facto forum for village administration and co-ordination of development initiatives alongside the traditional chieftainship (alkalo) system. Women’s kafos are managed by an elected committee. Men are joining women’s kafos to participate in specific economic activities, but they remain a small minority. 2.7.15 The Site Management Committees: The SMCs were established in all LADEP project sites, some of which cover a single village, whereas others cover several villages – the owner of the swamp – and a number of satellite villages. SMC membership is 50 percent female. They are

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responsible for managing and maintaining the water retention and tidal swamp access structures that they helped to build with own labor. They need further strengthening if they are to take responsibility for integrated watershed management. 2.7.16 Non-Governmental Organizations: It is estimated that some 100 local and international NGOs are operating in The Gambia. A number of the larger ones such as Action Aid the Gambia (AATG), Catholic Relief Services (CRS) and Save the Children Fund (SCF-USA) have active agricultural sections. Typically these NGOs concentrate on a particular activity such as seed multiplication and women’s horticultural gardens. However, many NGOs also provide general agricultural advice to the communities in which they work. Registered NGOs have formed an inter-NGO entity, the Association of Non-Governmental Organizations (TANGO). Co-ordination of governmental and NGO activities is the responsibility of the Advisory Committee for the Co-ordination of Non-Governmental Organizations (ACC-NGOs). NGOs - particularly those that have been operating in the country for some time - have made significant contributions to The Gambia’s development efforts not only by complementing the government services, but also by playing an innovative and demonstrative role. 2.7.17 The National AIDS Secretariat: A National AIDS Committee (NAC) was founded in 1987 under the then Ministry of Health, Labor and Social Welfare. The following year, an advisory body, the National AIDS Secretariat (NAS), was established, which was composed exclusively of health professionals since the epidemic was still seen mainly as a health issue. In 1992 a five year HIV/AIDS prevention, care and support project was initiated with resources mobilized from a number of donors but this was suspended after the military coup in 1994. NAC was reconstituted to a multi-sectoral body in 1994 under the same ministry. In 1995 a national policy was released and the National AIDS Control Project (NACP) was set in motion. In year 2000, NAC was moved to the Office of the President as the National AIDS Council (NAC) with representation from the public and private sectors still supported by a National AIDS Secretariat. In recent times, the Government has become highly committed to controlling the epidemic, with NAC being headed by the President himself. A national strategy on HIV/AIDS in currently being developed. 2.8 Agricultural Sector Constraints and Potentials 2.8.1 Most rural poor depend on agriculture and other rural activities for subsistence and income. About 91 percent of extreme poor and 72 percent of poor have agriculture as their main source of livelihood. Poor farmers are in a vicious circle of poverty-related low income, risk aversion, low input use, low productivity and low income. The rural poor are generally forced to produce for home-consumption and sell surpluses at very low prices. Groundnut farmers have the highest rate of poverty because of the low groundnut prices. 2.8.2 During the last decades, output growth was related to expansion of cultivated area, while yields stagnated. The natural resource base of The Gambia is limited and has deteriorated considerably during the last decades. Declining rainfall with over-farming without use of vital inputs causes erosion and soil degradation. The problem of soil fertility will worsen as population pressure leads to cultivation of more marginal lands and shortening of fallow periods. Drought-induced crop failure (crop yields fluctuate up to 40 percent depending on weather

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conditions) very often leads to widespread food and income insecurity. The exception to declining productivity is in areas where LADEP has expanded and intensified lowland rice production. Yields have been substantially increased and household food security markedly improved. 2.8.3 Additional causes of rural poverty as cited in the Government’s Rural Development Strategy Paper are: (i) low agricultural and labour productivity; (ii) poor access to productive assets (land, water); (iii) poorly functioning input and output markets; (iv) low world market prices for outputs, particularly for groundnuts and rice; (v) poorly functioning rural institutions (including credit); and (vi) inaccessibility to basic social services (children’s schooling and medical care). 2.8.4 Structural adjustment and currency devaluation have sharply increased the price of imported farm inputs, whereas economic liberalization has resulted in low and falling output prices. The resulting decline in profitability of crop production has slowed down adoption of technological innovations. Shortage of cash often forces farmers to sell their produce right after the harvest, when prices are at their lowest, and to buy back grain at high prices during the hungry season. The impact of efforts to diversify agricultural production is still limited (lack of alternative income-generating opportunities). 2.9 Agricultural Policy and Development Strategy 2.9.1 The Government main agricultural objective is to diversify agriculture away from groundnuts. Government priorities include: (i) water control management; (ii) soil fertility maintenance; (iii) research and extension; and (iv) rural finance/micro-finance. The PRSP/SPA II stresses the importance of making agricultural extension pro-poor and efficient, and agricultural research client-driven and responsive. Three ongoing trends in extension are: (i) the move towards a unified extension service; (ii) the devolution of responsibility for extension from central authorities (DOSA) to the local area councils (LGAs); and (iii) the transformation into a small-farmer extension service with local stakeholders. 2.9.2 Rice is the staple food of The Gambia but the country is not self sufficient in rice production and imports large quantities annually to meet domestic demand. The Gambia has the potential for producing rice competitively and the GOTG is committed to a policy of promoting and supporting the production of rice on a sustainable basis with the available appropriate irrigation technology. Nonetheless, massive imports of broken rice exert downward pressure on local rice prices. Government with assistance of external financial institutions like ADB and IFAD is addressing this issue by implementing projects aimed at import substitution 2.9.3 Rural poverty is attributed to a poor natural resource base and high dependency on mono cropping of groundnuts as the main export crop. The goal of the SPA-II is to reduce income disparities as well as disparities in access to sources of income and empowerment. Specific objectives in support of that goal are: (i) to establish an enabling environment for economic growth and poverty reduction; and (ii) to enhance productive capacity.

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2.9.4 Thus, the Strategy for Poverty Alleviation II (PRSP) relies on an approach, which promotes new attitudes, within a people-centred participatory framework involving local communities in managing their own development. This has been achieved by allowing beneficiaries to express their priorities and propose instruments for implementing the strategy. In support of poverty reduction, the GOTG has established a social fund whose main areas of intervention are: community development, small enterprise development, human resource development, public works projects for employment and micro-finance. Crosscutting issues include governance, environment, nutrition, population and HIV/AIDS. 2.10 Donor Interventions 2.10.1 In support of the Government development strategy described above, several development partners participate in the development strive to reduce poverty. The Bank Group's intervention in the sector includes the following on-going operations: (i) the Peri-Urban Smallholder Improvement Project (UA 5,72 million) and (ii) the Lowland Agricultural Development Programme (LADEP), co-financed with the International Fund for Agricultural Development (UA 8.05 million). 2.10.2 The LADEP aims to increase rice production using the Gambia River as the water source and focuses thus only on the lowlands. The Bank loan, in the amount of UA 4.00 million, was effective in 1997. To date (March 2004), the amount disbursed in UA 3.1 million (77.6%), and the project is recognized as a success story. An estimated 10,000 households have benefited from soil and water management schemes. LADEP will end on December 2004. Its long-term development objective is sustainable improvement of traditional rice production as a means of enhancing food security for impoverished rural households. The LADEP has todate developed 3,440 ha of lowland rice out of 3,735 ha targeted at appraisal (92%) and 3,086 ha of tidal swamps against a target of 2,700 ha (114%). It has further constructed 3,610 m of spillways out of 5,580 m (65%); 32 km of causeways out of 77 km (42%); 1,107 m of bridges against a target of 1,020 m (109%) in 16 villages. In addition, extensive community mobilisation have been carried out, with workshops organised in 14 districts, 47 SMCs formed and 12 DLFAs being functional today. Also the training activities under the extension services display good records, with 49 trainers, 120 extension workers, 228 farmers, of which 60% female, are trained. Overall, about 80% of the project activities are implemented and the project performance is very satisfactory. Sofar, more than 10,000 (about 72% of target) households have benefited from soil and water management schemes or access causeways and bridges. In addition, the LADEP PMU staff are instrumental in supporting other PMU staff of of other projects in the agricultural sector, including the bnak funded new projects. At the end of 2002, LADEP had reached around 12,000 direct beneficiary households. 2.10.3 The PSIP aims to increase production of horticulture and livestock products by smallholders in the peri-urban areas of Western and North Bank Divisions of the country. The Bank has also financed the National Livestock Development Study (UA 1 million) and the Artisanal Fisheries Development Project approved in 2000 for UA 2.90 million. In addition, a portion of the NERICA Rice Project totalling UA 22.02 million is allocated to the Gambia and the Bank has financed the Emergency relief to Flood victims approved in 2000 for UA 0.37

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million and the Emergency Relief to Drought Victims approved in 2003, also for UA 0.37 million. 2.10.4 IFAD has financed six projects in The Gambia to date with five co-financed with other donors, such as the ADB Group. All projects had an agricultural focus and pursued the overall goal of alleviating rural poverty by improving household food security among small farmers, especially women. The nation wide Rural Finance and Community Initiative Project (RFCIP), started in 2000 and ending in 2005, aims to increase access to nutritionally diverse food and promotes the means of enhancing rural incomes, streamlining and expanding rural financial services and promoting community self-help activities. Under the project, Village Saving and Credit Schemes (VISACAs) operate and manage smallholder saving and credit schemes related to natural resources management as well as other sectors. 2.10.5 The World Bank is currently supporting the GOTG with a loan of USD 15 million to implement a HIV/AIDS strategy. The main focus of the programme is on advocacy; prevention of mother to child transmission and care of HIV/AIDS infected persons. It is also preparing the Community-Based Rural Development Project (CRDP), which will mainly support Community-driven investments and build capacity for service delivery. This project will be implemented countrywide and is likely to start in 2005. 2.10.6 The European Union Village Initiative Support Activity (VISA) Project: The European Union provides support in implementing the Government’s policy on decentralised Rural Development in the Country. This decentralized rural development project aims at strengthening the capacity of LGA councils at Division level to respond to demands for community level infrastructure and services. It works through the DOSLG&L and currently covers NBD, URD and WD, but is to be extended countrywide in the near future. It focuses on the LGA, ward and village level and supports the establishment of district development councils (DDCs), ward development councils (WDCs). This programme provides support to Village Development Committees (VDCs), focusing on capacity building of the VDCs in a multi-disciplinary approach, including Health, Agriculture and Community Development. 2.10.7 The GTZ / KfW and the European Union are assisting The Gambia with a forestry development project. GTZ supported the Gambia German Forestry project (1980-2003) and the GTZ/KfW Central River Division Project (1994 – 2000). The European Union has supported the Upper River Division Project, which came to an end in 2000. Achievements under the programme have been successful in the North Bank, Western and Lower River Divisions. The programme is expected to have come to an end in 2003. 2.10.8 The National Environment Youth Corps: Funded by UNDP and the GOTG, this project (NEYC) is mobilising and training groups of youths to form businesses, which will also improve the environment. The project will be targeting Divisions and communities where the PIWAMP will work so that there will be potential for cooperation between the projects, particularly in labour intensive construction activities.

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3. NATURAL RESOURCES SUB-SECTOR 3.1 Land Resources 3.1.1 The land resources can be classified into four categories: (i) alluvial floodplains or lowlands, where the soils are highly variable with permanently saturated mangrove soils, characterized by their very fine texture (clay and silty clay) and their high degree of acidity on drying while the soils of the Central River division are slightly acid to neutral; (ii) colluvial slope soils include deep red soils with relatively deep sandy surface covering the fine textured subsoil. Laterite rubble can be found in soils near the plateau. However, in the lower slopes the water table affects soil types and red soils are very extensive in the moderately flat areas; (iii) lower plateau soils vary with elevation but are red types; and (iv) upper plateau soil types are influenced by erosion intensity. Active erosion has led to shallow, hard and massive laterite soils with medium textured soils. The latter groups generally constitute the Upland ecology. 3.1.2 The Lowland: The main lowland crop is rice grown in the wet season using hand cultivation. Fruit and vegetables are grown in small permanent fenced gardens and hand watered from dug wells. Rice is traditionally grown in a series of ecological niches referred to as: (i) wulumbango (gently sloping upland depressions with a high water table); (ii) bantafaro (rainfed rice fields on gently sloping land on the transition zone between the edge of the flood plains and the uplands; (iii) back swamps (shallow depressions with flooding from rainwater and surface water run-off during the rainy season and dry completely at the end of the rains; (iv) seasonally saline tidal swamps (saline (or brackish) during the dry season and freshwater during the rainy season; (v) perennially freshwater tidal swamps (daily flooding with freshwater from the river even during the dry season, and can therefore be used for ratoon cropping or double-cropped rice growing; and (vi) tendaco (transition zone between pure upland and lowland. Upland rice, such as NERICA has the potential to be grown in this ecological niche). More detailed description is provided in Volume II. 3.1.3 Major constraints in the Lowlands: (1) A significant area of low-laying coastal lands along the saline shore-line of the River Gambia is classified as acid sulphate and potentially acid sulphate soils, which are poorly productive or unsuitable for cropping and, after drainage and drying, they become excessively acid. They generally occur in tidally waterlogged flooded flat areas rich in organic matter and suitable for rice production and (2) Intensive agriculture practices, deforestation, land degradation in the uplands and destruction of natural riverine wetlands has led to increased erosion and siltation of the river. Upland erosion is also depositing sand in rice cultivation areas reducing their productivity. 3.1.4 The Uplands: The uplands consist of an undulating deeply weathered sandstone plateau up to 50 m above sea level. Natural vegetation is dominated by declining densities of Acacia albida and Adansonia digitata. Heavily exploited woodland occurs on the escarpments and plateaux edges, often capped by an iron pan. The upland soils are slightly acid (pH 5.5 - 6.5). The main upland crops are groundnuts, early millet, maize, late millet, sorghum and cotton in decreasing order of importance. Groundnuts, maize and sorghum are often intercropped with late millet and other crops.

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3.1.5 With the exception of groundnuts, which are the main cash crop, most upland cereals are retained for home consumption. Crop yields are generally low with coarse grain yields hovering around the 100kg/ha mark, due in part to declining rainfall. Women have increasingly moved towards niche activities (vegetables, sesame) and where water control on their rice fields is less than adequate are now reportedly moving into livestock, especially small ruminants. Animal draught power and small ruminants (goats and sheep) are an integral part of the farming system. Over 80 percent (135,000 ha) of the area planted to upland crops is prepared with animal traction with horses and donkeys gradually replacing draught oxen. Upland crops are transported with animal-drawn carts. 3.1.6 Upland Ecosystems: The upland ecosystems are typically characterized by: (i) Upland Valleys or wulumbango, as described above, consist of long, shallow, wide and gently sloping upland depressions. Available water depends on rainfall and surface run-off; however, water table levels are regularly high. The vegetation is characterized by shrub grassland and open woodlands. The upland valleys are considered as ecologically fragile areas. (ii) Upland Rangelands, cover about 317,108 ha and are usually unsuitable for cultivation and characterized by shallow soils, poor drainage and rough topography. Rangelands are commonly used with high stocking rates and heavy grazing schemes. Nevertheless, in the Lower River Division, some rangelands remain ungrazed because of large tsetse flies population. Most of the upland rangelands are characterised by the dominance of unpalatable plants, widespread burning and widely eroded and bare soils. A lack of access to water during the dry season and poor water distribution, forces the animals to move to the lowlands where water is available. 3.1.7 Constraints and Potentials for Upland Cropping: In The Gambia, as in the rest of West Africa, upland cropping suffers from high population pressures that led to little or no fallow farming, during which soil fertility is reconstituted after two or three years of extensive cropping as described above. Removal of topsoil and subsoil due to fast-flowing surface water has created deep and wide gullies in the uplands. Increased gully and sheet erosion limits the use of the land, while soil laden water causes water-quality decline and siltation in the lowlands. Consequently, soil fertility has declined markedly with has subsequently reduced crop yields. 3.1.8 Another constraint is that the number of livestock has increased and grazing remains communal and little controlled. Overgrazing, burning and bush fire, deforestation and land clearing have increased water run-off and reduced infiltration due to the soil structure breakdown. Consequently, until the major problems of over cropping and uncontrolled increasing livestock numbers are effectively tackled, the productivity of Gambian agriculture will continue to decline and increasing areas will be abandoned due to erosion and lack of fertility. The projects funded by the Bank and IFAD are part of the Government efforts to redress the situation.

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3.2 Water Resources 3.2.1 The Gambia is centred on the River Gambia and its tributaries, the Sandougou, Nianija, Sofaniama, Bao and the Bintang. Nearly 90 per cent of the territory lies in the Gambia River basin. The water resources comprise seasonal rains, ephemeral ponds and depression storage, inflows the River Gambia and two aquifer systems underlying the entire country. Run-off generated from these catchments is insignificant due to the low gradients and permeable soils. 3.2.2 Surface water: Rainfall - Over the past four decades reduction in rainfall has resulted in recurrent drought years. The decline of rainfall is the single most important factor affecting the water resources. The River Gambia – the River Gambia is tidal throughout its length in the eastern part of the country, particularly in the wet season. However, persistent drought in the Sahel region has caused a dramatic slippage in the mean annual river flow of the river Gambia fom 265m3/s to 168m3/s from 1968 to date. Because of the flat topography there is a pronounced marine influence, especially in the dry season, when the salt tongue moves as far as 250 km upstream. Surface water is used in limited quantities for pumped irrigation. The seasonality and salinity have important repercussions on land use. To avoid an increase in salinity, the safe limit for irrigation from the river Gambia, without major dam construction, was estimated to be a maximum of 2 400 ha in the dry season. However, with the phenomenon of tide influence on the river, tidal irrigation is used to put some agricultural land under flood irrigation. 3.2.3 Groundwater: Exploitable groundwater occurs in the Shallow Sandstone (40 to 120 m deep) and Deep Sandstone (more than 250m deep) aquifers. Both aquifers occur throughout the country. The former aquifer is estimated to hold about 125 million m3 of good quality water, whereas, the latter has a capacity of 80 million m3. In the Gambia, groundwater is the main source for human consumption, industry and other economic use. 3.3 Forest and Wildlife Resources 3.3.1 Forest land and mangroves cover about 505,300 ha (43 percent) of The Gambia. State forestland area is the largest proportion (78 percent). However, community and private forestlands, covering about 17,487 ha are increasing. The western part of the country is covered in Guinea Savannah vegetation while the drier east is dominated by Sudan type. Mangrove forests along the river account for 67,000 ha. Forest products include timber, palm oil, wild fruits, honey, woodcarvings and fuelwood, which provide nearly 90% of all household energy needs. 3.3.2 Constraints: Most of The Gambia’s forestlands have been modified by grazing, overexploitation for fuel, timber and non-timber products as well as by fire, cultivation and drought. Massive deforestation (mainly in the uplands) has resulted in increasing soil erosion, severe run-off levels, increased siltation in the lowlands and destruction of natural habitats. It has subsequently resulted in degradation of natural habitats and loss of biodiversity. According to the NEA, open and closed forest types have declined by more than 80%. The Gambia’s rainforest in the Abuko reserve, a unique biotope covering about 45 ha, is also threatened by soil salinisation. 3.3.3 The GOTG’s forest policy was revised in 1995 to place focus on local community participation following a pilot programme in community forest management initiated in 1991.

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The Forestry Department was restructured to decentralize authority and forest legislation was revised to develop a national Forests Management Concept for sustainable management of forest reserves. Activities include national tree planting and tree seedling distribution to farmers and schools during the rainy season.

4. THE PROJECT 4.1 Project Concept and Rationale 4.1.1 The design of the Participatory Integrated Watershed Management Project (PIWAMP) derives, from the Lowlands Agricultural Development Program (LADEP) – its achievements, effects, impact, as well as its strengths and shortcomings, as indicated in the Mid-Term Review (2002). Also, the project design is based on the lessons learnt from similar donors’ interventions, as well as the two extreme cases of the climatic evolution in the country: a) floods in 1999 and b) drought in the following years (2001-2002), and for which the Bank assisted the Government of the Gambia through two emergency relief grants respectively in the amount of UA 0.37 million and UA 0.358 million. Thus, food security in the country is seriously affected by the rain and climatic conditions. In this regard, LADEP project, as a successful project in the lowland areas, has improved water retention structures and thereby reducing moisture stress and risk of crop failure even in dry years specifically in the Central River Division (CRD) and the North Bank Division (NBD). Furthermore, water retention structures and land reclamation have increased total land available for food and rice production. 4.1.2 The significant success of LADEP lies within the effective community-driven participatory approach. This approach has commended community self-targeted activities geared towards local ownership. Therefore, the community’s commitment to maintain and repair the water retention structures has contributed to project sustainability. Another significant lesson is that land conflicts have been minimized, leaving land reallocation to the communities themselves. Thus, access to land has become less troublesome. Because landowners could not develop the land without the entire community’s labour contribution, they are willing to share the rice land with farmers who contributed their labour. Satellite villages from upland communities are obtaining access to lowland rice land by collaborating with the owning villages in water retention and tidal swamp access works. Women’s access to rice land and their rights over the harvested product has not been disrupted. 4.1.3 Another lesson learnt from LADEP is the value of the whole watershed approach. As LADEP did not address upland erosion, the sustainability of the structures in the lowlands could be threatened by siltation and deposit of sand in some cases. In case of erosion, it is necessary to treat the entire watershed, starting from the crests downward. Treating only the upland areas adjacent to the lowlands cannot stop erosion. On the uplands, physical conservation measures need to be combined with biological measures such as vegetative hedgerows to stabilize the bunds. The design of the present project is also derived from this particular lesson, which suggests that the entire watershed (both uplands and lowlands) be covereved. Selected project sites will continue to be on a participatory and demand-driven basis, and the requirement of beneficiary labour for construction should continue. 4.1.4 The Government of The Gambia recognizes that the two types of climatic fluctuations, as mentioned above, remain significant recurrent factors for food insecurity in the country, affecting

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primarily, the rural population. Flood affected the lowland area, in majority the rice farmers, while the drought is most frequent in the upland areas. This justifies why the PIWAMP, should be regarded as the best approach to address the frequent occurrence of these phenomena. The project will adopt the Village Land Use Management concept (“Gestion de Terroir Villageois”), which has evolved in recent years as a means of addressing environmental degradation problems such as loss of soils through wind and water erosion, declining soil fertility, loss of vegetation cover and increasing vulnerability to drought. Many of the most badly affected areas are found in farming zones where the high densities of population and stripping of vegetation cover for clearing land for cultivation are major causes of further resource degradation. 4.1.5 Central to the whole concept is, thus, the introduction of adaptable simple technologies that have proven successful in the country with regards to environmental protection as well as the active participation of local people in the analysis of their problems and opportunities, prioritisation of activities and development of implementation approaches. Their involvement creates a pattern of interests and incentives, which prompt local people to abide by self-regulated rules and responsibilities for resource use and management. Investment in social infrastructure is sometimes used as a means of providing fairly immediate benefits to local people and as an incentive for the longer-term investment of effort in resource management that is required of them. 4.1.6 The Project is in line with GOTG’s Agricultural and Natural Resources Management Sector Policy. Communities play a central role in management of their natural resources, which is in line with decentralization efforts of government. The Project is also in line with the revised COSOP for The Gambia issued in January 2003 and anchored to the objectives of IFAD’s Strategic Framework for Western and Central Africa, as it will enhance participation, build on indigenous knowledge, raise agricultural and natural resource productivity and invest in women. The Project is a further step in emphasising the importance of soil and water management in the long-term agricultural productivity of The Gambia and in mobilising GOTG resources into this area. 4.1.7 The proposed project is also in line with the Government Strategy for Poverty Alleviation II (SPAII) and Policy for Decentralized Governance, all captured under the Vision 2020, which aims at transforming the Gambia into a middle income country by that year. The guiding principles of the SPAII are that: (i) poverty reduction is a long-term process; (ii) all aspects of policy (Governance, budgetary management, macro-economic stability and structural reforms) shall be used of as benchmarks for progress monitoring; and (iii) it is based on a broad participation, with government at the centre and a full involvment of all stakeholders. The proposed project also fits in the Country Strategic Paper (2002 - 2004) of the Bank. 4.1.8 The Bank and IFAD missions held various meetings with beneficiaries, local leaders, government officials at district, divisional and national level to discuss issues of project design, relevant government policies and plans for the sector, and all confirmed the timely importance of the project. The design of the project therefore fits fully in the current national policy on the Agriculture and Natural Resources Policy. 4.2 Project Area and Beneficiaries

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4.2.1 Area: The PIWAMP is expected to operate across the entire country, similar to the LADEP, as far as the lowlands are concerned, while expanding its interventions to upland areas and complementing the on-going ADB sponsored Peri-urban Smallholder Improvement Project. The Rural Finance and Community Initiative Project also operates country-wide and will work together with the PIWAMP. 4.2.2 Beneficiaries: The priority target group is poor smallholders dependent on traditional upland crops and lowland rice cultivation as their main source of livelihood. For lowland development, the primary target group will be women; whereas for upland conservation farming, it will be men. Since water retention, upland conservation and swamp access works will be undertaken on a community basis and all farmers in a site will need to be involved, it will not be possible to restrict support to disadvantaged groups. 4.2.3 Beneficiaries in the selected areas are therefore both men and women smallholder farmers. Men are engaged mainly in cultivation of sorghum, millets, maize for home consumption or sale and groundnuts. Women, in their own right, are involved in cultivation of groundnuts, sesame and upland rice. Labour for the agro-engineering works will be provided by the Dabada or production unit as well as by hired labour. In some cases, labour will be provided through the organised labour networks (kafo’s) or individually hired labour. Indirectly, women beneficiaries will also benefit through loans from the existing VISACAs to engage in horticultural production as well as small livestock development. Further, VDCs are composed of at least 50% of women. As these committees are responsible for undertaking Participatory Rural Appraisals and preparing Community Action Plans for future natural resources development they will constitute an important tool in empowerment in community planning, in general, and watershed management in particular. Further, the 20-year experience of SWMU demonstrates that for lowland development, 85 percent of beneficiaries are women. 4.2.4 Because the design of the project is demand-driven and modular and communities can demand assistance for more than one year, the number of new beneficiaries per year depends on the ratio between new sites and continuation sites. Although the number of LADEP sites increased steadily from 1997-2003, the proportion of continuation sites relative to new sites has steadily increased. As a result, the number of new beneficiaries gradually tapered off, as SWMU opted to work with its best clients for several successive years to extend their water retention structures or – in the case of tidal access - to complete the work started in the previous year. Integrated watershed management is expected to bring in new communities from the upland areas, many of which are thought to be poorer than the neighbouring lowland rice growing communities. PIWAMP interventions will therefore directly and indirectly benefit around 164,310.

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4.3 Strategic Context 4.3.1 The Government of The Gambia has developed its Agriculture and Natural Resources Management Policy for the period 2001-2020 in order to reduce poverty and increase income, especially in the rural areas. The policy aims to increase income of the majority of the rural poor and in the mean time better manage and develop the natural resources. Natural resource management is the backbone of the Government’s effort to develop agriculture to meet the growing demand on food products caused by continuous growth of population. The policy is explicit in that, while the lowlands play an important role in irrigated rice and horticultural production, the uplands should not be marginalised as they constitute the means for the majority of rural farmers to attain improved income and move towards household food security. The Government has therefore implemented support programmes through DOSA and other line ministries to uplift the status of the rural poor. 4.3.2 The proposed Project fits very well within this Policy. It will contribute to this policy by ensuring the judicious and sustainable exploitation of the country's natural resource base so as to regenerate, conserve and improve biodiversity and enhance its productivity in an integrated manner. It will urgently address the declining situation in the upland watershed ecosystem, which, if not arrested, will aggravate the poverty status of upland dwellers and jeopardize the lowland investment already made. It will in addition contribute to food self-sufficiency by focusing on cereal production including the NERICA. It will also increase the sector's overall output thereby enhancing foreign exchange earnings, creating employment and generating income for the majority of the rural population in particular for women, youth and producer associations. Finally, the production base will be diversified so as to facilitate the production of a wide range of food and export crops and provide effective linkages between the agriculture and natural resources sector and other sectors of the economy such as tourism. 4.3.3 Targeting will be achieved by selecting communities on the basis of their demand for what the Project offers and their willingness to contribute self-help labour for scheme construction. LADEP experience shows that self-help labour is self-targeting in that willingness to undertake hard manual labour is inversely related to wealth. Villages, which perceive the most urgent need for rice land rehabilitation have been more responsive than those with alternative income sources. Hence, the smaller and more remote villages applied for assistance more readily than the larger settlements along the main road. 4.4 Project Objective The sector goal is to reduce poverty and enhance household food security. The project objective is to increase land productivity and reduce soil erosion on a sustainable basis. 4.5 Project Description 4.5.1 The PIWAMP project will be implemented over a period of six years for the NTF funded activities, while it will be eight years for the IFAD sponsored activities. The main project’s expected outputs are:

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• Capacity of the institutions and the beneficiaries involved is enhanced; • Communities are trained and empowered in natural resources management; • Production and productivity are increased in the project area on a sustainable basis; and • Access to the market infrastructure and inputs are improved.

4.5.2 The PIWAMP will have the following three components, namely: A) Capacity Building; B) Watershed Development; and C) Project Management. The project will empower communities at the grass-root level through the transfer of control of efficient land use management from the government to local people. The project, in supporting local communities, is aiming at increasing yields and productivity of crops, livestock and forestry and hence food security and improved incomes at the household level. The process consists of: (i) capacity building actions, such as awareness raising and sensitization of local communities to identify current and potential problems associated with resource use and resource degradation; and (ii) watershed development and management actions, with the communities involved in preparing community action plans and implementing these plans themselves. (A) : CAPACITY BUILDING 4.5.3 The objective of this component is to sensitize key stakeholders including farmers, communities, government agencies and service providers (NGOs) on the issue of land and water conservation. The Project will train to empower existing Village Development Communities (VDCs), of which 50% are women, to improve their productive capacity and address long-term land degradation through a coordinated group of land and water conservation activities. The main output of the capacity building component will be competent and effective village-based organisations that will enable the communities to sustainably manage their natural resources. Activities under the component will be implemented at two levels as described in the following paragraphs. NTF will finance activities at National, Divisional and District Levels while IFAD will finance activities at watershed level.

Watershed Management: 4.5.4 At the watershed level, IFAD will support activities such as information and sensitization campaigns in a number of targeted districts throughout rural areas. The project will provide funds for district-level stakeholder meetings supported by targeted mass media campaigns. The sensitization campaigns will emphasize that PIWAMP is a continuation of LADEP and that has the same activities. The project will also promote the advantages of lowland activities being integrated with upland conservation farming and soil conservation activities aimed at increasing farmers’ yields on upland crops in the medium term while reducing land degradation around villages and in the lowlands. This information campaigns will include HIV/AIDS-related topics in smallholder agriculture and rural development and gender mainstreaming of project activities. Sensitization and training will be provided for both project Staff and farmers. 4.5.5 Capacity building: The project will support Capacity building and training needs assessment of the Village Development Committees (VDCs) and other community organizations. Thus, the project will provide training to Community Development Field staff

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(Community Development Officers and Community development Assistants), for sensitization and community mobilization about the activities offered by the new project. The project will provide support to development skills of the community groups to: (i) work in cohesive groups; (ii) to undertake PRAs for the identification of their main constraints and priority activities and gender diagnostics; (iii) assist in supervising and giving final approval for services provided by service providers; and, (iv) ensure that community resources are available for ongoing maintenance of the infrastructure developed. Existing Site Management Committees (SMCs) for lowland sites will be strengthened and new Village Farmers Associations (VFAs) will be created to address upland problems on a watershed-basis in new sites. Provision of community functional literacy education will be an important training sub-component in the project. 4.5.6 New Farmers Associations will be formed at Division and National levels. These include: (i) Village Farmers Associations (VFAs), District Farmer Associations (DFAs), Farmer Platform and Women Farmers Unions at Division and national level. At District Level: Some 100 participants will be targeted from each of the villages within the district. When a project watershed covers a number of villages, a Watershed Farmers Committee (WFC) will be formed to coordinate watershed management activities. Funds will be provided to develop the capacity of these associations. Since participants will come from different villages, to converge at one venue, the project will provide funds for lunch and transport fare refund to enhance full participation of the concerned communities. The project will ensure the mobility through the procurement of one double cabin pickup for the SMC and motorbikes for the six Divisional Community District Officers (CDOs). The project would also cover the petrol and operating cost of these vehicles. 4.5.7 Technical Training: The project will support knowledge and skills development for various external groups and institutions involved with or interested in integrated watershed management with focus on the following key areas: a) Participatory Learning Action Research (PLAR), b) integrated crop management, c) land conservation, and d) conservation farming. The trained groups and institutions will act as a focal point for information needed and will facilitate information dissemination and public awareness. PLARs training will be provided by specialized institutions, such as the SWMU, NARI and WARDA for both, lowland and upland farmers. At the end of the programme, it is expected that 885 groups of between 20 and 25 members would have been trained under the PLAR approach and 580 groups under the existing DAS extension system. The training will cover maintenance of bunds and spillways and importance of avoiding sand deposition from up-slope erosion, as well as improved agronomic practices for rice and other crops. Groups will be formed and farmer-farmer visits organized in both lowland and upland ecologies.

Institutional Capacity building: 4.5.8 This sub-component, financed by NTF, will strengthen service delivery capacity in government line agencies, at National, Divisional and District levels. Overall, the project will support: a) some 40 Sensitization workshops, b) 200 awareness campaigns, c) about 200 training sessions in participatory approach, d) 27 sessions in gender issues, and e) holding of 8 PLARs. Further, the project will consequently support training for up to 580 VFAs including both new VFAs and existing SMCs. The project will also provide in service training in terms of: a) 12

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courses to be held in land use mapping; b) 12 courses in soil and water conservation and conservation farming; c) 6 courses in PRA; d) 6 courses in forest and livestock management; e) 3 courses in Gender analysis; f) 24 courses in Adaptive research; and g) 2 courses in seed multiplication. In addition, one 10-days study tour and one AMTA training will be organized. As for farmers, the project will support the 16 courses in soil and water conservation and conservation farming techniques, as well as in community forestry and rangeland management techniques. In addition, 125 farmer-to-farmer field visits will be organized. Further, one HIV/Aids and one Malaria campaigns will be organized. Capacity strengthening materials and equipment will be acquired and the rehabilitation of the Jenoi Training Center will carried out. 4.5.9 Department of Planning (DOP): The project will assist in building the capacity of DOP, especially the capacity of the Monitoring and Evaluation Unit, by providing field and office equipments as well as logistical support. In addition training of selected staff will be provided to enhance its efficiency and effectiveness. Staff mobility will also be provided via the procurement of motorbikes. It is expected that DOP-M&E unit will be directly involved in the project implementation through participating in stakeholder assessments, implementation progress reports, and mid-term and project completion reports for impact assessments. 4.5.10 Department of Agricultural Services: The DAS is the current service provider for extension services nationwide. Specialized institutions will be recruited to train the extension staff of DAS on the technical aspects and the approaches needed to achieve their extension duties. Most of the training will be in two forms: (a) Training of Trainers (TOT) involving medium to short term courses at appropriate institutions within the Gambia, and (b) on-the-job training. Training will be first organized in a training institute for all DACs and SMS nation-wide, who in turn will train DESs . The DESs and SMSs will then train the village extension workers (VEWs) at divisional level, either in one of DOSA’s mixed farming centers where they exist, or in the DAC’s office. 4.5.11 After the training, the VEWs will be able to provide: (i) efficient agronomic and conservation advise to farmers at the project intervention sites in both lowlands and upland areas; (ii) select and supervise farmers for multiplication of seed/planting material in collaboration with NARI researchers and other institutions; (iii) select and supervise farmers for adaptive research in collaboration with NARI researchers; and (iv) ensure monitoring and evaluation of data collection for all extension activities done. 4.5.12 The NTF fund will support part of the costs associated with capacity building of the Department of Agricultural Services (DAS), including procurement of: (i) Office Equipment; (ii) Communication; and (iii) Rehabilitation of Jenoi Training Center, which will be used as the principal venue for training courses. The Centre is structurally in good condition. It was last rehabilitated at the beginning of LADEP’s operations, seven years ago, but some minor upgrading is necessary. Other courses will be held at mixed farming centres, DAC’s office compounds or on farms/villages. 4.5.13 Soil and Water Management Unit: The SWMU will be the major service provider to the project. However, the major institutional constraint relevant to the project is SWMU’s ability to cope with a substantially larger program than it has had before and which is spread over the

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whole country, both the lowland and the upland. Anticipated problems concern travels and logistics; the recruitment of suitably trained technical staff and their motivation to fully and quickly execute a major program; and the recruitment of competent and experienced management staff and able field coordinators under the PMU. 4.5.14 Provision is made under the NTF fund for capacity building of SWMU through field and office equipment support and training in terms of: i) pH kits; rain gauges for agronomy; desktop computers for soils section; ii) agricultural materials and inputs including seed storage and seed recovery costs; as well as materials for field trials and demonstrations; and (iii) training costs of farm visits, which is the best way to demonstrate the benefits of schemes for rice growing, and subscriptions to technical journals. 4.5.15 Thereafter the institutional strengthening, SWMU will be contracted by the project to provide: (i) preliminary soil survey prior to site selection to ensure that soils are reclaimable and to identify acid sulphate soils; (ii) advisory services to the engineers during site design; (iii) provision of seed of appropriate rice varieties after site completion; collection of paddy as payment; (iv) and general agronomic advice on cultural practices for the different ecologies. SWMU will also be contracted to train VEWs in soil and water management and crop production technology; it will advice on ways of improving productivity through deep ploughing, liming, in field water control; and train farmers in maintenance of structures and field visits. 4.5.16 National Agricultural Research Institute and Seed Technology Unit: The NARI and STU will be responsible for the adaptive research and development activities of the project. The seed technology Unit will ensure the multiplication of selected seed varieties. It will also test and certify all seed produced for the use of farmers in the developed schemes. Funds will be made available for selected interventions involving crops, equipment, husbandry techniques etc. which will be on-farm tested in simple observation trials in order to fast-track evaluation. NARI will include PRAs with farmers in its evaluation process. Funds will also be provided for NARI staff training, study visits and field allowances. 4.5.17 The project will also support NARI to re-establishing of a national seed bank to ensure that seed is available for farmers in drought years. Support will mainly comprise capacity building for sourcing and monitoring availability of seed rather than physical storage. The project will also provide resources to NARI through a series of annual contracts for farmer-based seed multiplication. NARI would procure the breeder seed, contract the production of foundation seed, and train the SMS-crops, supervise the contract seed growers and certify the seed produced. (B) : WATERSHED DEVELOPMENT

4.5.18 The objective of this component is to support initiatives identified and developed by communities and especially women, youth and other vulnerable groups. Community initiatives will be supported through a watershed development fund managed by the Project on a demand-driven basis. It will be overseen by the Project Coordinating Committee. This component is covering four sub-components, and as the Project is to be demand driven, the specific allocation of funds between the components will depend on the prioritized assistance requested by communities and allocation of budget funds by the PMU.

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4.5.19 While IFAD will fund the Lowland Water Management Schemes, as a continuation of the LADEP activities and expand its financing to the Swamp areas, which are part of the lowlands; the NTF will support Land Management and Conservation Farming on the uplands. Thus, by PY8, the project would have achieved 1,800 km of contour bunds and 3,600 km of grass plantation; controlled 120 gullies; executed 120 km of causeways and bridges; constructed 4,207 m of spillways and upgraded 3,220 m; rehabilitated three (3) buildings; increase the forest cover with 1,150 ha ; established five (5) nurseries; improved 15 water points and realized the Spot rehabilitation of 100 km of village roads by PY6.

Lowland Schemes: 4.5.20 Learning from LADEP experience in rate of community participation, it is planned that under PIWAMP, the implementation rate for lowland rice development will start at 500 ha in the first year and decline to 300 ha in the sixth year. This would be consistent with the declining share of requests for water retention works relative to tidal swamp access, as potential sites will become less. The planned total lowland development under this project will be 3, 070 ha at the end of the project. This corresponds to a total of 76,750 m of dikes and 4,207 m of spillways. Land reclamation of saline or acid sulphate soils activities will be also supported by the project using the same successful techniques under LADEP. The land preparation and production activities will also cover the same area of 3,070 ha. 4.5.21 Upgrading of a total of 3,220 m of structures on previous sites (mainly repair and reinforcement of spillways) will increase from 280 m in year one to 540 m in year 8. The SWMU contracts will also cover the cost of agronomic follow-up at project sites for two years after construction, including soil surveys and the demonstration of appropriate rice seeds for the newly flooded growing conditions. PIWAMP will contract SWMU to carry out trials on the use of structures (fibreglass flood gates and control gates) to control the flow of water into and out of back swamps, which would allow further development of the extensive back swamps in URD.

Swamp Access: 4.5.22 For PIWAMP, the implementation rate has been reduced to accommodate the need for SWMU to devote an increasing part of its time, as well as human resources, to upland conservation activities. Hence, an average 14 km of causeways per annum will be developed, for a total of 112 km over eight years. This will give access to 56 ha of tidal swamp rice land, bringing it to a total of 6,250 ha over 8 years. In addition, long bridges will lead to a 10 percent area expansion. It is expected that 6,875 ha will benefit from improved access over the eight-year period. Villages with access problems due to flooding of back swamp and bantafaro areas will also be eligible for access works. The actual amounts of land benefiting from swamp access works will be carefully monitored. 4.5.23 The construction of 14 km of causeways per annum will require the construction of 336 m of short bridges, plus one 40 m bridge, i.e. a total of 376 m per year and 3,008 m over 8 years (2,688 m of short and 320 m of long bridges). For swamp access, the Project will also finance the establishment of community woodlots to grow timber for replacement of wooden bridge floors. In addition to causeways and bridges, the Project will finance the cost of related soil surveys and agronomic follow-up in the first 2 years after construction.

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Uplands Management and Conservation Farming: 4.5.24 Upland conservation is needed to protect and sustain the productivity of the land through soil and moisture conservation. It will also contribute to the protection of houses, dwellings and entire villages (which are often located in the middle reach of watersheds) from flooding. Conservation activities will reduce the erosion of sand and soil into lowland agricultural areas, enhancing their capacity for rice production. Conservation farming will also contribute to the recharging of ground water reserves and a rise of the water table in wells by increasing the infiltration of rainfall. The initial techniques for erosion control will be conservation farming, contour bunding and agroforestry. The Project will provide training for selected SWMU staff in modern soil conservation and conservation farming techniques in comparable environments in the sub-region or other areas. 4.5.25 Conservation Farming will include restoration of traditional practices discontinued over the last 20 years due to the pressure on land use. Uncultivated margins one to two metres wide planted in perennial grasses and legumes around each field will be restored to slow runoff from cultivated areas. Contour cultivation using only tined implements to slow water running down the slope will be promoted as standard practise and communities supported to encourage their farmers to show their social responsibility by adopting it. Wherever possible, crop residue will be left on the field after harvesting and then used for stock grazing towards the end of the dry season to clean up the fields ready for land preparation. This will complement strip farming where managed fallow strips (5-10 m wide) across the contour under grass, grass with legumes or a combination of grass and shrubs are created. Vetiver and/or fodder trees will be planted along the edges of these strips to permanently mark the contour. These strips will incorporate feed gardens such as have been promoted by the RFCIP and, which could also be used as vegetable gardens. As well as stabilizing soils, the system restores soil fertility. Access to the conservation farming areas will be at the top of the slope to reduce the development of eroded tracks where water runs off the fields. 4.5.26 Participating communities will work together to plan and police grazing management as an integral part of upland management. Because of the need to use a balanced package of interventions, communities would be encouraged to convert a small area of the community land to full conservation farming with contour bunds so the community can assess the potential benefits and also short term costs. 4.5.27 The IFAD funded Feed garden activity under the RFCIP will work with the School garden farm programme of the Department of Education. They will be supported by the VFAs Local parent Teacher association. This would help provide practical experience to teachers and help propoagate conservation techniques to the young, thereby ensuring sustainability. 4.5.28 Contour bunds about 60 cm high and 30 m apart will be built, largely with manual labour, with a slight gradient to slowly direct the water to natural waterway (or to divert the flows from creating gullies in a village). These bunds are prone to damage by water and animals unless they are stabilised with vegetative cover. The Project will promote the planting of cover grasses and vetiver hedgerows to protect the contour bunds. Associated conservation farming techniques will include planting of browse and productive trees and shrubs adjacent to contour

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bunds. The bunds will also provide a guide for contour cultivation. The Project will support the construction of around 90 km/year of contour bunds protected by vegetative hedgerows and other conservation farming measures. In addition, four (4) vetiver grass nurseries will be created in strategic sites (each of 0.25 ha) to ensure convenient transporting to the planting area. Before the bunding activities are commenced, communities will be encouraged to adopt conservation farming systems. 4.5.29 Soil Erosion Rehabilitation Funds for this component will be directed to rehabilitating severely eroded gullies, areas where deposits from erosion are putting lowland farming structures at risk and for Irish crossings. This will mainly involve placement of gabions constructed by the community with assistance in delivery of suitable rock. Rehabilitation work would not be undertaken without a commitment by the community in terms of labour input to introduce conservation farming measures supported by bunding, where appropriate, in the catchment above the severely eroded area. 4.5.30 The Agro-forestry operations will be financed by the NTF and will be undertaken by the communities with assistance from The Gambia Forestry Department (GFD). Forest guards from the GFD will train farmers as part of their normal duties in conservation farming techniques. The Project will finance all operational costs to establish tree nurseries and distribute suitable tree species to participating farmers. This activity will be managed by the GDF.

Agricultural Development: 4.5.31 The Project will support development of the PLAR extension tool, extension follow-up, small livestock activities, adaptive research and development, and farmer based seed multiplication. The Participatory Learning and Action Research (PLAR) approach will be used as a key tool for the community involvement in the project implementation. The PLAR will focus on the planning, prioritization and preparation of activities at the VFA level. After the village has developed its watershed management plan, extension workers trained in PLAR will work with the VFAs to develop an action plan for priority activities in the village watershed. A bottom-up, social and experiential learning approach is critical so that changes are based on communication and social interaction. 4.5.32 Extension Follow-up on Lowland and Upland Conservation Sites: The Project will annually contract DAS for agricultural extension to farmer groups (in some cases SWMU extension staff will also provide the service). Extension follow-up will be provided for two years to each lowland site and for four years to each integrated watershed management or upland land management / conservation farming site. To address shortcomings experienced under LADEP, the contract will cover the cost of short-term in-service staff training and mobility in the form of motorbikes, motorbike operating expenses and field allowances for extension workers. Resources will also be provided to the ACU to develop extension material. 4.5.33 Adaptive Research and Development: Under PIWAMP, the PMU will contract NARI to undertake an adaptive research and development project on the major research issues in integrated watershed management. Farmer issues, identified through the PLAR process will also be considered. The emphases of the assignment will be on “adaptive” and “development”. NARI

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will review its past work and carry out extensive literature and Internet reviews of technologies of relevance to the Gambian situation to consolidate known technologies into usable VEW / farmer level recommendations. These will be supplemented by email consultation and discussion with colleagues in research and other organizations around the world. The Project will provide funds for study visits by NARI staff to other locations where the same problems are being faced to learn how they can be successfully tackled. Selected interventions involving crops, equipment, husbandry techniques etc. will be on-farm tested in simple observation trials in order to fast-track evaluation. NARI will include farmers in participatory evaluation processes. 4.5.34 The concept is to introduce adaptable technologies that have proven successful in-country, in the Region and worldwide to successfully address the problems of declining soil fertility and soil erosion on the uplands. Linkages will be established with a forthcoming IFAD technical assistance grant to WARDA on participatory varietal screening for NERICA rice in three West African countries including the Gambia. NARI will continue working with WARDA in rice varietal screening for tolerance to iron toxicity and the different rice growing ecologies in the toposequence of The Gambia. 4.5.35 Farmer-based Seed Multiplication: The supply of good quality seeds is a limiting factor for optimization of benefits from integrated watershed management works, both on the lowlands and uplands. Under PIWAMP, IFAD funds will provide resources to NARI and DAS through some annual contracts for farmer-based seed multiplication. NARI will procure the breeder seed, contract the production of foundation seed, and train the subject matter specialist (SMS) - crops, supervise the contract seed growers and certify the seed produced. The SMSs in turn will train selected DESs and VEWs. The Project will collaborate with a suitable NGO to support the development of community seed multiplication as livelihood enterprises, wherever appropriate. 4.5.36 The Project will operate in all six divisions with two sites per division (near to NARI research clusters) and will involve a total of 6 SMSs, 12 district extension workers (DESs), and 12 village extension workers (VEWs) in two batches (24 total). To address problems encountered during LADEP, the annual contracts with NARI will provide for staff training, mobility and field allowances. The PMU will contract with DAS to provide day-to-day extension support to contract seed growers under NARI supervision. 4.5.37 Livestock Management: As livestock are an integral part of the farming system within the watershed, some funding will be available for complementary livestock activities. A study carried out by DLS looked at grazing management from the point of view of the “graziers”. It found that the majority thought that the best way to ensure that there was good grass was to put in place a good grazing management system. Most respondents stated that important measures to achieve this was to control bush fires and to assure a rational distribution of stock watering points. Participating communities will work together to plan and police grazing management policies as an integral part of upland management. 4.5.38 Watering points for livestock drinking purposes are necessary given the scarce availability of water in the uplands. A joint initiative exists between the Department of Livestock Services (DLS) and the Department of Water Resources (DWR) in providing water to ruminants in the uplands. Under this initiative, the NTF intends to finance the construction of an additional

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15 livestock watering points. While DWR resources will be responsible for the design and construction of the watering points, DLS will be monitoring the overall establishment of the watering points. VDCs will be responsible for their maintenance and contribute to this by means of a user fee system. Livestock water user associations, as a sub-committee of the concerned VDC already exist is some places and will be established in others and have an operational user fee system in operation. The Project will finance three motorcycles for use by DLS for monitoring. 4.5.39 Community Forests: The Joint Forest Management aims to protect the forest resources in the uplands of the country. Especially in North Bank, but also in Western and Lower River Divisions, forest resources have dwindled in recent years due to their unsustainable use and monoculture groundnut cultivation. Notwithstanding this, small-scale forest pockets are still scattered around the area, which serve the purpose of providing wood energy for rural communities. Many of these forests require enrichment planting as well as protection from bushfires. Management of these forests lies, in principle, with the communities under the Government’s approved Joint Forest Management Initiative and they will, therefore play a very important role in these activities. The Project will assist the Forestry Department in mapping these forests through joint participatory rural appraisals with the VDCs and subsequent investment in afforestation and enrichment planting and protection. The NTF will finance about 1,000 ha of afforestation mainly in the North Bank; 20% of 750 ha for enrichment planting and protection of about 100 km of forest boundary for fire protection. It will further finance operational costs for the expansion of existing tree nurseries; procurement of seed and seedling material; polythene tubes, and land preparation including planting and replacement plantings. The Project will also finance motorbikes for patrolling purposes. 4.5.40 Village Road Improvement : some communities identify the poor conditions of roads within the village and to feeder roads as a constraint to watershed management and economic improvement. Funding will be available by the NTF to support community labour to upgrade up to 1.5 km of road in a participating village or 100 km in total. The project will also provide funds for the training of project beneficiary communities in road maintenance. This training and the requisite supervision will be carried out by staff from SWMU. 4.5.41 Business Opportunity Studies: The IFAD will provide limited support for development of financial and business plans for micro-enterprises that can directly contribute to project objectives to improve agricultural productivity. Such activities include, peddle rice threshers, small rice mills, animal traction equipment, backyard poultry. The Project will not provide credit but will work with the VISACAs, the RFCIP and other partners to assist farmers to access short and medium term investment. Support will involve partnering with NGOs and other organisations, especially commercial businessmen to assist farmers to: (i) realistically evaluate business opportunities; (ii) prepare business plans, to obtain the training and capacity building needed to run micro-enterprises; and, (iii) operate them sustainably and profitably.

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(C) : PROJECT MANAGEMENT 4.5.42 The Project will use the existing PMU of LADEP, which is attached to the Project Coordination Unit, DOSA. The PMU staffing will be the same as LADEP, with four additional positions: (i) two Field Coordinators who will report to the Project Coordinator: one to manage the lowland activities and construction and the other to manage upland conservation works, agricultural development and adaptive research activities; (ii) an additional M&E resource with specific skills in agricultural and socio-economics to take responsibility for impact assessment, activity benefit: cost analysis and business opportunity studies; and (iii) a community mobilization assistant to help the CDC with data entry, reporting and liaison with DCD. The Field Coordinators will be handling the day-to-day affairs of the project and will be assisted in this by an Agronomist, Forestry Expert, Livestock Development Expert and a Community Development Officer, who will be overseeing activities from their respective departments 4.5.43 The Project will finance equipment and short term training for staff of PMU, technical assistance for participatory land conservation and conservation farming specialists, staff mobility including vehicles and operating costs, field allowances and simple rehabilitation of the LADEP buildings. The project will also make provisions for Annual Auditing, Mid-term Review and Project Completion Report. 4.5.44 For the Monitoring and Evaluation (M&E) activities, the Project will finance: computers; short term in service staff training in data base management and participatory impact assessment; technical assistance (six person months) for developing the participatory M&E system and associated MIS, and field M&E specialists to lead the first year review / planning process and the later MTR and PCR as training activities; baseline surveys; twice-yearly visits by a stakeholder core learning team to assess implementation progress, ad hoc surveys, before/after dike surveys and operating expenses for M&E activities. Specific operational and training funding has been allocated for collection and updating of the quarterly monitoring information on VFA and community activities which will be the key source of M&E information. 4.6 Production, Markets and Prices 4.6.1 Production: The major crops under the PIWAMP project will be maize, sorghum, millets, groundnuts and rice. Vegetable production includes tomatoes, chillies etc. Yields for upland crops without the project are for Maize: 1,200 kg/ha; Millets: 1,100 kg/ha; Sorghum: 1,100 kg/ha; upland rice: 1,100 kg/ha; Groundnuts: 1,400 kg/ha. Production levels under the “With” project situation are estimated at: for Maize: 1,800 kg/ha; Millet: 1,650 kg/ha; Sorghum: 1,650 kg/ha; upland rice: 1,650 kg/ha; Groundnuts: 1,750 kg/ha. 4.6.2 The Project will increase The Gambia’s agricultural production with approximately 9,943 hectares of lowlands and 7,200 hectares of uplands developed. The Project will increase production by 10,000 tons of paddy per annum from Year 8 onwards, contributing to a reduction in import expenditure on rice of USD1.4 million per annum, improving the balance of payments. Upland cereal production will increase at least 2,200 tons per annum. This volume will be consumed locally or exported to neighbouring countries. Its market value amounts to about USD580,000 per annum.

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4.6.3 The Project will strengthen the service providers (SWMU, DAS, NARI, DCD, etc.) and rural associations (women’s kafo groups, VDCs, VFAs, and their apex district level farmers’ associations, including women farmers association). 4.6.4 Markets and Prices: Small-scale traders dominate most market services with products often moving through intermediaries before reaching consumers, which gives rise to higher marketing margins. Investments in access road improvement and market information will lead to improvements in the market situation. These project interventions should stabilise the prices of food crops in the divisional markets and significantly improve the income level of the producers. 4.6.5 Official statistics on crop price information system in the country are limited. However, agricultural sample surveys are carried out bi-annual through the Department of Planning. Average market prices for the main field and horticultural crops are in GMD for Maize: 2.65/kg; Millets: 2.65/kg; Sorghum: 2.67/kg; Local rice; 4.85/kg; Groundnuts: 2.65/kg. Tomatoes: 12/kg; Eggplant: 3.0/kg; Chillies: 8.0/kg and Carrots. 4.6.6 Because the rural cash market for local rice is relatively small and deficits are large, incremental rice and cereal production will easily be absorbed without risk of flooding the market or depressing farm gate prices. The expected increase in rice production represents about 10 % of total present rice imports. 4.7 Environmental Impact 4.7.1 The project has been classified as Category II, according to the Bank’s environmental and social screening guidelines. Physical intervention in the environment is limited to soil and water conservation works and upland farming. Apart from the establishment of contour bunds, gully control and the spot rehabilitation of access roads, most other activities will be of agronomic nature. They entail conservation farming, which include techniques such as mulching, agro-forestry, strip cropping and the introduction of high yielding crop varieties. Positive Impacts and Enhancement Measures 4.7.2 Positive impacts will be the reduction in the rate of soil erosion due to reduced water run-off by the contour bunds and the gabions, improved soil fertility as a result of the conservation farming practices and increased availability of water, especially during the dry season as a result of higher water infiltration rates. As a result of reduced rates of erosion, investments in the lowlands will have a longer life span. Different reforestation schemes envisaged under the project will reduce run-off and increase infiltration of rainwater into the soil. The introduction of agro-forestry based farming systems will not only enhance the soil husbandry on-farm but also reduce pressure on the existing forest areas. Other positive impacts will result from an extensive community training programme, capacity building and institutional strengthening, which will lead to sustainability of the proposed approaches and reinforce future productivity of the land resources.

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Negative Impacts and Mitigating Measures 4.7.3 Negative impacts of the project are expected to be minimal as the soil and water conservation works will be limited to the establishment of contour bunds and gabions. There may be some loss of topsoil, but measures will be taken to stabilise the bunds by means of vegetative materials. Vegetation depletion and soil erosion may occur around water points where animals congregate. Locating water points strategically and closing them at certain times of the year can limit resource destruction, taking into account both hydrological and soil conditions in the area. With regards to conservation farming, it is not expected that the introduction of new crops will have any negative environmental impact as, in general, farming in the area is based on low-external input systems. 4.7.4 When constructing SWC structures, care must be taken not to cause a significant reduction of the overall surface water flow by impoundment or diversion of the basin’s water, because downstream users and natural systems may experience adverse impacts. Other immediate impacts include decline in water quality from diminished dilution of pollutants, seasonal shortfall in supply for downstream users, reduction in wetland area, and increases in salinity levels. Project must ensure the existence of tools and technical knowledge to accomplish management and planning in such a way that development patterns are kept in balance with the capacity of the water resources. Environmental Monitoring and Management 4.7.5 The NEA will be supported in the preparation of the project’s environmental and social management plan (ESMP). The project management team with the support of NEA will ensure that mitigation and enhancement measures are implemented, that they generate intended results and that they are modified, ceased or replaced when inappropriate. Included in the measures is the support to the fight against HIV/AIDS and Malaria in the form of awareness raising, training and malaria mosquito netting. The project will also finance operational costs related to the monitoring of the activities undertaken under the plan. A budgetary allocation of UA 26,000 has been made for environmental monitoring and management. 4.8 Project Costs

4.8.1 The total cost of the project, exclusive of custom duties and taxes but including physical and price contingencies, is estimated at GMD 472 million equivalent to UA 12.085 million. The foreign exchange portion is estimated at UA 6.985 million representing 57.8 % of the total project cost. The local cost portion is UA 5.100 million equivalent to 42.2 % of the total cost. A summary of costs by component and by category of expenditure is provided in Tables below.

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Table 4.1

Summary of Project Cost Estimates by Components

Dalasi Million UA '000 Component Local Foreign Total Local Foreign Total % FE

1. Capacity Building 87 64 151 2,235 1,640 3,875 42 2. Watershed Development 88 135 223 2,248 3,454 5,702 61 3. Project Management 14 34 48 350 874 1,224 71 Total Base Costs 189 233 422 4,833 5,968 10,801 55 Physical Contingences 5 24 29 147 606 753 81 Price Contingences 5 16 21 120 411 531 77

Total Project Cost 199 273 472 5,100 6,985 12,085 58

Table 4.2 Summary Project Costs by Category of Expenditure

Dalasi Million UA '000

Project Category Local Foreign Total Local Foreign Total % of FE1. Works 21 114 135 546 2,916 3,462 84 2. Goods 46 68 114 1,175 1,748 2,923 60 3. Services 13 53 66 321 1,366 1,687 81 4. Operating Cost 119 38 157 3,058 955 4,013 24 TOTAL PROJECT COST 199 273 472 5,100 6,985 12,085 58

4.8.2 All project costs were estimated on the basis of the prevailing prices in The Gambia as of November 2003. The prices of imported goods and services were obtained in Dalasis and then converted to Units of Account using November 2003 exchange rates. Cost for civil works are based on ongoing similar works. Rates of 10% and 3% for physical and price contingencies respectively, were applied to the costs of civil works and goods to be purchased under the project. Given the low level of inflation rate in the Gambia, it was deemed unnecessary to separate the effect of price contingencies into local and foreign expenditures. A flat rate of 2.5% was applied to both imported and local goods and services. 4.9 Sources of Financing and Expenditure Schedule The Nigerian Trust Fund (NTF), International Fund for Agricultural Development (IFAD), the GOTG and the Beneficiaries will finance the project. Total NTF financing will be UA 4.945 million representing 41 % of the total project cost. IFAD financing will be UA 4.948 million representing 41 % of the total project cost. Both NTF and IFAD will finance 100% of foreign exchange costs. Government contribution will amount to UA 1.61 million, equivalent to 10% of the total project cost to cover part of the operation and maintenance of the Project Management Unit, operational costs related to capacity building and operational costs related to land use management. Beneficiaries will contribute UA 1.032 million equivalent to 9% of total project cost to cover participation in the agro-engineering works. The Sources of Finance are shown in Table 4.3 below.

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Table 4.3 Summary of Cost Estimates by Source of Financing

Dalasi Million UA '000

Source of Financing Local Foreign Total Local Foreign Total % of TotalNTF 27 167 194 681 4,265 4,945 41 IFAD 87 106 193 2,228 2,720 4,948 41 Government 45 0 45 1,160 0 1,160 10 Beneficiaries 40 0 40 1,032 0 1,032 9

TOTAL 199 273 472 5,100 6,985 12,085 100

Table 4.4 Summary of Project Costs by Category of Expenditure and Financier

FINANCIER UA'000

Project Category NTF IFAD Government Beneficiaries Total 1. Works 2,777 632 0 53 3,462 2. Goods 1,049 1,874 0 0 2,923 3. Services 678 1,009 0 0 1,687 4. Operating Cost 441 1,433 1,160 979 4,013 TOTAL PROJECT COST 4,945 4,948 1,160 1,032 12,085

Project funds will be disbursed according to expenditure schedule by component and by source of finance shown in Tables 4.5 and 4.6 below:

Table 4.5 Summary Expenditure Schedule by Component

UA '000 Component 2005 2006 2007 2008 2009 2010 2011 2012 TOTAL

1. Capacity Building 420 1217 586 834 493 423 315 0 4,288 2. Watershed Development 470 1,007 1,388 1,091 1,020 955 309 70 6,310 3. Project Coordination 300 324 337 118 103 117 103 85 1,487

Total cost 1,190 2,548 2,311 2,043 1,616 1,495 727 155 12,085

Table 4.6 Summary Expenditure Schedule by Source of Financing

UA '000 Source of Finance 2005 2006 2007 2008 2009 2010 2011 2012 TOTAL

NTF 0 1,350 1,163 1,058 692 642 40 0 4,945 IFAD 999 890 767 648 636 563 345 100 4,948 Government 85 199 189 188 160 120 169 50 1,160 Beneficiaries 106 109 192 149 128 170 173 5 1,032

TOTAL 1,190 2,548 2,311 2,043 1,616 1,495 727 155 12,085

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5. PROJECT IMPLEMENTATION 5.1 Executing Agency The Executing Agency will be DOSA, which will have overall responsibility for the co-ordination of project execution. DOSA will discharge this role through a Project Coordination Committee (PCC), which already exists for the Lowland Agricultural Development Programme, and a Project Management Unit (PMU). 5.2 Institutional Arrangements 5.2.1 Project Co-ordination: The existing LADEP PCC will provide overall policy guidance and ensure liaison with project beneficiaries and associated agencies. It will approve the Project Implementation Plan, Annual Work Plans and Budgets before forwarding them to the Bank Group. The PCC will comprise the Permanent Secretary (or his representative) of DOSFEA, the Director of DAS, the Director of DCD, the Director of SWMU, the Director General NARI, the Executive Director of NEA, the DOP, the DLS, the DOF, the chairwoman of the National Women Farmer’s Association, the chair of the National Farmers’ Platform and two farmers (one female and one male) from each Division, selected by the DFAs. The Permanent Secretary (DOSA) or his representative will chair the PCC, while the Project Co-ordinator will act as the secretary. The Committee will meet at least quarterly. The existence of the PCC will be a loan condition precedent to first disbursement.

5.2.2 Project Management Unit: An autonomous PMU will be constituted under DOSA, comprising present LADEP staff and strengthened to cater for the new tasks. The PMU will be headed by a Project Co-ordinator (PC), assisted by two Field Co-ordinators (FC), one to manage the lowlands activities and construction, and the other for uplands activities. The PMU will also comprise an Administrative and Financial Controller and an Accountant’s clerk, an M&E Officer and his Assistant, and a Community Mobilisation Officer and his Assistant, who will be paid for by the project. The PMU will be assisted in its duties by an Agronomist, Forestry Expert, Livestock Development Expert and internationally recruited Community Development Expert, who will all be on Government Payroll. The curriculum vitae of the people nominated for the different positions within he PMU will need prior approval of the Bank. Strengthening of the PMU as well as availability of office space will be a loan condition precedent to first disbursement. 5.2.3 Implementation Modalities: Activities will be carried out by the existing line agencies of the DOSA, as part of the normal work programme, in accordance with approved Project Implementation Plan, Annual Work Plans and Budgets. The SWMU will be responsible for the surveys, design, construction and supervision of the bulk of agro-engineering works, whereas the private sector will be contracted for more complex works. The DAS will co-ordinate conservation farming and assist the NARI in the on-farm verification trials as well as with the dissemination of NERICA seed. The Forestry Department will be responsible for activities related to Agro- and Community Forestry. The DLS, in collaboration with the Department of Water Resources will lead the construction of 15 drinking watering troughs. Community Development Activities, such as the rural appraisals and the preparation of Community Action Plans will be undertaken with the assistance of Multi-Disciplinary Teams instituted under the Local Government. The Department of Planning will be responsible for M&E and information

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dissemination. The NEA will be responsible for establishing the environmental mitigation plan as well as for monitoring the mitigation measures under the plan. NARI will be responsible for the multiplication and dissemination of the New Rice for Africa (NERICA) as well as for research in upland soil fertility improvement. Also, the two Field Coordinators will coordinate all training activities. The Borrower shall furnish evidence to the Fund of a Program of Training, which will be a loan condition. 5.2.4 The above activities will be coordinated by the PMU. Regularly weekly meetings will be held with officers of the various units involved in the implementation to ascertain progress and deal with problems. Each subsequent year’s activities by a particular agency, involved in implementation, will be funded subject to acceptable performance in relation to the previously agreed program and completion of appropriate reports and accounts. 5.3 Supervision and Implementation Schedules 5.3.1 Supervision Schedule: The day-by-day supervision of the project will be done by the PMU. These include works undertaken by contractors, consultants, crop producers and processors. The PMU will be assisted in this by the Department of Planning, which will provide data collection and analysis facilities. The PMU will report on all aspects of the project including financial, and progress of project activities based on reports received from DOP and the M&E Officer. The PMU will also prepare a project completion report capturing all aspects of the project including achievements, constraints, problems and lessons learnt at the end of the project. Annual work plan shall be submitted three months before the beginning of each year, to NTF for review and approval prior to implementation. The PMU will hold quarterly meetings to ensure that work plans and procurement schedules are achieved as planned. 5.3.2 The NTF, as IFAD Cooperating Institution, will supervise the whole project on behalf of IFAD, at least twice in eighteen months in accordance with Bank procedures, to assess the progress of project implementation and discuss with PMU, DOSA, other officials and stakeholders regarding relevant activities, disbursement, audit, achievements, problems, constraints, and any changes that may be necessary. A Mid-Term Review mission is proposed to take place in the fourth year of project implementation to determine, if necessary, the course the project should take for the remaining years. 5.3.3 Implementation Schedule: In year one, the activities will involve: a) Strengthening the PMU with the Field Coordinators, Accountant and Accountant’s Clerk and assigning additional members to the Project Steering Committee; b) making the necessary preparations in terms of the Project Implementation Plan; procurement of goods and services; reconnaissance and detailed surveys works and awareness raising campaigns; c) preparing necessary agreements with collaborating agencies and arranging for training schedules and participatory rural appraisals. The National Environmental Agency will prepare Environmental Mitigation Plan, while NARI will start with the screening and multiplication of NERICA seed for on-farm multiplication. In year two, agro-engineering and conservation works will start by the private sector and the beneficiaries under the supervision of the SWMU and the DAS. Office and field equipment will be procured. In year three, works for land and forestry development will continue and new watersheds for intervention will be selected in Lower River Division. Training activities will continue and study tours will be carried out.

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Table 5.1

Summary of Implementation Schedule Activity/Action

Beginning

End

Agency

Board approval 05/2004 05/2004 NTF Loan signature 07/2004 07/2004 GOTG/NTF General Procurement Notice 08/2004 08/2004 NTF Establishment of PCC and PMU 09/2004 09/2004 GOTG Preparation of PIP, PPP, AWP&B and TP 10/2004 12/2004 PMU/PCC/GOTG Sign. of Agreements with Service providers 12/2004 12/2004 PMU/SP Effectiveness 01/2005 01/2005 GOTG/PMU Sensitisation, Mobilisation and Selection 02/2005 06/2005 PMU & SPs Surveys, Mapping, Tenders 01/2005 06/2005 SWMU/PMU Implementation 01/2005 08/2010 PMU Midterm review 06/2008 06/2008 Ext. consultants Audit 12/2005 12/2010 Ext. consultants PCR 06/2010 12/2010 Ext. consultants

5.4 Procurement Arrangements 5.4.1 Procurement arrangements are summarized in Table 5.1 below. Procurement of all goods, works and services under the project will be carried out by the PMU. Goods, works an services financed by IFAD would be procured following IFAD procurement guidelines. All procurement of goods, works and services financed by the NTF will be in accordance with the Bank Group’s Rules of Procedure for Procurement of Goods and Works or, as appropriate, Rules of Procedure for the Use of Consultants, using the relevant Bank Standard Bidding Documents.

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Table 5.2 Summary of Procurement Arrangements

UA ‘000 Project Categories

NCB SL Other NBF TOTAL 1. Works 1.1 Civil Works 2,709 (2,709) 685 3,394 (2,709)

1.2 Office Rehabilitation 68 (68) 68 (68)2. Goods 2.1 Equipment

- Field Equipment - Office Equipment

380 (380) 280 (280)

820 156

1,200 (380) 436 (280)

2.2 Motorcycles 258 (258) 351 609 (258)

2.3 Vehicles 271 (71) 200

271 (71)

2.4 Agricultural Inputs 60 (60) 347 407 (60) 3. Services 3.1 Technical Assistance 81 81

3.2 Training

534 (534) 928

1,462 (534) 3.3 Health Campaigns HIV/AIDS, Malaria

15 (15)

15 (15)

3.4 Monitoring Services

14 (14)

14 (14)

3.5 Audit/mid. review

115 (115)

115 (115) 4. Operating Cost 4.1 Motor vehicles and Equipment

100(100) 538

638 (100)

4.2 Travel and subsistence

120 (120) 190

310 (120)

4.3 Staff costs 1120 1,268 2,388

4.4 Office Rent 40

40

4.5 Miscellaneous 221 (221) 416

637 (221)

TOTAL 5,978 (3,766)

1,606 (678) 3,152 (501) 5,980 12,085 (4,945) * Figures in parenthesis indicate NTF Funding The goods, Works and Services for the Project will be procured according to the modes recommended below: 5.4.2 Works: The civil works total UA 3,394 million. Agro-Engineering works such as contour bunding, gully controls, vetiver planting, etc. amounting to UA 2.709 million, and comprising about a hundred small contracts, will be implemented by SWMU through Force Account (FA) as was successfully done under LADEP. SWMU has not only the capacity to undertake these small works, but the know how and experience in leading farmers to participate in these works, thus ensuring future maintenance and sustainability of the structures. In addition they are located in

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remote areas and scattered all over the country, therefore unattractive to contractors. For other civil works, such as roads improvement, causeways and bridges, with a total value of UA 658.000, as well as office rehabilitation works amounting to UA 68,000, they will be carried through National Competitive Bidding (NCB), because they are scattered all over the project area and also located in remote areas, and thus will unlikely attract non-regional contractors. Further, a sufficient number of competent national, regional and foreign contractors are established in the Gambia to ensure adequate competition and quality. The Forestry and Land works amounting to a total of UA 0.383 million will be carried out under FA by the Forestry Department, which has the capacity and the know-how to undertake such works. In addition, the afforestation and enrichment planting works are scattered and remote and also require a participatory approach. 5.4.3 Goods: Field Equipment valued at UA 0.380 million in total will be procured under National Shopping (NS) because they can be acquired in the country and there are adequate number of suppliers to ensure fair competition. Office equipment amounting to UA 0.280 million will be procured under NS, due the local availability of the goods. Survey Equipment will be procured under International shopping (IS) due the specialized character of this equipment, requiring standard specifications. Vehicles and motorcycles amounting to UA 0.259 in total will be procured through NS due to the availability of several international suppliers in the country, with this ensuring competitive prices. 5.4.4 Services: The services of the Consulting firms providing the Auditing of the annual project accounts, the Mid-term Review and the PCR, amounting to a total of UA 115,000 will be procured on the basis of shortlists of qualified consultants, in accordance with the Bank “Rules of Procedure for the Use of Consultants”. It will follow the selection procedure based on technical quality with price consideration, using relevant Letter of invitation (LOI). Training, Health campaigns and monitoring services amounting to a total of UA563,000 will be procured through Direct negotiations with the existing institutions, with which the PMU shall conclude contract Agreements. The Direct Negotiations mode of procurement is considered appropriate for these activities because the existing agencies possess the required specialised expertise and thus would be able to provide such services satisfactorily. 5.4.5 National Procedures and Regulations: The Gambia‘s national procurement laws and regulations have been reviewed and determined to be acceptable. 5.4.6 Executing Agency: The procurement of goods, works, consulting, and training services will be the responsibility of a central procurement facility to be established in DOSA. DOSA has extensive experience implementing donor-financed projects. The Implementing Agency is therefore familiar with ADB and IFAD Rules of Procedure for the Procurement of Goods, Works and Services. The resources, capacity, expenses and experience of DOSA are adequate to carry out the procurement. The Project Management Unit will prepare and process all the procurement documents 5.4.7 Procurement Documents: The text of a General Procurement Notice (GPN) will be agreed with the Department of State for Agriculture and it will be issued for publication in the Development Business upon approval of the Loan Proposal by the Board of Directors of the Loan Proposal. The following documents are subject to review and approval by the Fund before promulgation: Specific Procurement Notice

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Tender Documents or Requests for proposal for Consultants Tender Evaluation Reports or Reports on Evaluation of Consultants’ Proposals, including

recommendations for contract award Draft contracts, if these have been amended from the drafts included in the tender

invitation documents. 5.5 Disbursement Arrangements 5.5.1 At loan negotiations, the Bank and the Borrower would together examine the project document and agree on the disbursement modalities. In principle, the Government will open two separate accounts in the name of the project, one in a convertible currency for NTF resources and the other in the national currency for project funds from the Government. The NTF funds will be disbursed according to an annual work programme, which will be approved beforehand by the Government and the Bank. Broadly, disbursement procedures most appropriate for particular activities will be chosen from the following: Direct Payment Method: this method is most appropriate for agro-engineering works and consultancy services and for vehicles and equipment; Revolving Fund Method: this method is appropriate for stall allowances, training and small expenditures; Reimbursement Guarantee Method: which will be used for operation and maintenance works on vehicles, equipment and purchase of spare parts. 5.5.2 The initial request for disbursement of the special account will be submitted to the Bank for approval and shall cover a period of four months. The disbursement of subsequent funds will be subject to justification of the utilization of the preceding funds. Other disbursements under the project will be made in accordance with the procedures in force agreed upon during loan negotiations. Government contribution to the project costs would be deposited in the respective Special Account on a quarterly basis. This will be a condition of the loan. 5.6 Monitoring and Evaluation 5.6.1 Monitoring and Evaluation (M&E) activities will be carried out in a participatory and gender sensitive manner. The project M&E unit will monitor project implementation based on the verifiable indicators in the matrix. In addition it will set up verifiable indicators for monitoring the impact that the project has on male and female beneficiaries and ensure that the benefits reach the target group. These indicators will be sent to the Bank for review and approval. M&E will be the responsibility of the PMU in close collaboration with the Department of Planning. The Department of State for Finance and Economic Affairs will periodically monitor the overall implementation of the project. The PMU will be required to provide quarterly reports prior to each of the Project Coordinating Committee meetings. These will include aspects mentioned in paragraph 5.3.2. A mid-term review of the project’s performance will be undertaken in the fourth year, which will form the basis for modifying the project’s approach, if, found necessary. 5.6.2 The PMU will prepare quarterly progress reports, (according to the Bank Group format) and annual progress reports indicating physical progress, procurement activities, expenditures,

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and evaluate the representation of men and women as beneficiaries according to the requirements of the Bank. Quarterly reports will reach the Bank within two months of the end of the reporting period, while the annual report will be submitted before the end of March of the following year. Department of State for Agriculture will submit a project completion report to the Bank within six months of the end of project implementation. 5.7 Financial Reporting and Auditing 5.7.1 The PMU of the Project will keep financial records in accordance with sound international accounting practices and will ensure that an independent auditor, acceptable to the government of The Gambia and the Bank, audits all project accounts annually. The corresponding audit reports will be regularly submitted to the Bank for review. The project coordinator will be responsible for timely submission of annual financial statements. Fully audited and certified financial statements for the preceding financial year shall be submitted to the Bank not later than six months after close of the financial year. 5.7.2 Processing and keeping of records of Revolving Funds: when the project enters into force, the borrower shall ensure that an internal control practice with an adequate accounting system is established for the project. Precedent to the disbursement of the initial advance, (i) an action program for the implementation of an adequate accounting system shall be required; and (ii) selection of an External Auditor who will be responsible for the audit of the revolving fund during the implementation shall be done. In addition, for further disbursements, (i) the borrower shall provide the Bank with evidence of establishing an adequate accounting system; and (ii) the external auditor certifying compliance with the Bank's rules and regulations applicable to the expenses paid through the initial advance or subsequent replenishments. This will be part of the condition of first disbursement. 5.8 Aid Co-ordination 5.8.1 UNDP currently facilitates donor co-ordination in The Gambia. Specifically it is assisting the Government in coming up with aid coordination policy. Strategic donor co-ordination occurs at various stages of the project cycle; i.e. conception, identification and implementation and deals with themes such as gender, HIV/AIDS and Malaria control and natural resources management. With regards to the Agricultural Sector, DOSA is responsible for co-ordinating donor assistance in the sector through the Office of the Deputy Permanent Secretary for projects and programmes. Coordination between various donors will continue during project implementation. Activities with regards to HIV/AIDS awareness will complement activities undertaken by the World Bank supported project. 5.8.2 The ADF preparation mission met with representatives of UNDP, FAO and EU. During these meetings the mission briefed the different donors on the proposed project. Support to the proposed project was expressed. 6. PROJECT SUSTAINABILITY AND RISKS 6.1 Recurrent Costs

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At the end of the project, total recurrent costs are estimated at UA4 million over the project period of eight years. Of the total amount of UA4 million NTF will contribute UA0.44 million (equivalent to 11%). The main items of recurrent cost to be borne by the government are office rental, staff salaries and utilities. The operation and maintenance of the physical infrastructure including gabions, rural roads, and hedgerows will be the responsibility of the beneficiary communities. The communities will have received the training required for this work. The cost of maintaining the hedgerows will be minimal once the hedgerows are established. The recurrent cost requirements will easily be met from government budget as PCU will be taken over by normal programme of DOSA.

Table 6.1 Recurrent Costs

Financier 2005 2006 2007 2008 2009 2010 2011 2012 Total NTF 0.00 94.00 82.00 74.00 70.00 66.00 55.00 0.00 441.00IFAD 380.00 364.00 347.00 347.00 327.00 327.00 245.00 75.00 2,412.00Government 85.00 199.00 189.00 188.00 160.00 120.00 169.00 50.00 1,160.00

Total 465.00 657.00 618.00 609.00 557.00 513.00 469.00 125.00 4,013.00 6.2 Project Sustainability 6.2.1 The project has been designed to be sustainable beyond the implementation period. The Village Land Use Management approach adopted in this project is holistic and involves all stakeholders from the level of the grass-root and upwards in the planning, design and implementation of Community Action Plans. It builds on existing knowledge systems of development including those on agro-engineering works, conservation farming techniques, and joint management of the works by the forest and rangeland communities. The self-reliance approach envisaged in the project design will contribute to making the beneficiary enterprises and institutions more efficient, more profitable and sustainable. The strengthening of the capacities of the VDCs in the conservation works would contribute to long-term sustainability. 6.2.2 The physical infrastructure interventions envisaged under the project are mostly of an agronomic nature. They include soil and water conservation works, including the establishment of contour bunds, gully control that seek to enhance the profitability of upland farming. These proposed interventions are promoted in other on-going projects in the country and are popular with beneficiary communities. Once established, maintenance of the works would be easily carried out by the concerned communities, who as noted above (para 6.2.1) would received the requisite training and supervision under the project. Water user fees, where not as yet instituted, will be introduced to ensure sustainability of the livestock watering points. 6.2.3 The project beneficiaries by their involvement in the project design, choice of technologies, and in project management decisions will have an increased sense of ownership and responsibility for the success of the project. This will enhance their willingness to contribute in kind and in financial terms thereby ensuring the long-term success and sustainability of the project and its benefits. Workshops of representatives of project beneficiaries and project staff

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will be held at the beginning of each year at the Village and Ward Development Committee levels. The workshops will review and agree on project annual work plans thereby further enforcing beneficiaries’ sense of ownership. 6.3 Critical Risks and Mitigation Measures 6.3.1 It has been assumed that the commitment to decentralisation of the Government remains unchanged since the project strategy is based on the principles of empowerment and devolution of responsibility to the grass root level. The project will directly contribute to this process by strengthening existing or creating new VDCs which will be the grass-root level mechanisms for community development and planning.. 6.3.2 It has been assumed that MDFT will be recruited to facilitate VDC in undertaking village level participatory rural appraisals, which should result in community action plans (100 in total), which will then be collated into the watershed plan. An adequate number of trained personnel with previous experience in village planning are therefore required. The project will ensure that the MDFTs will undergo training of trainer coursers so as to be able to facilitate the process of community action planning. 6.3.3 Increases in incomes are to be derived from increased production and from improved access to market information. It is assumed that there are no adverse climatic changes such as poor rainfall, which will affect productivity of rainfed crops. As is for instance the case with the NERICA, experience has shown that during absolute drought also upland rice, which in principle should be more drought resistant, does not survive. It has also been assumed that the villages will have adequate transport facilities to take produce from fields to markets and that there will be a price incentive for farmers to produce and market surplus production. 7. PROJECT BENEFITS 7.1 Financial Analysis 7.1.1 To estimate the benefits accruing to project beneficiaries two multiple cropping/single harvest a year farm models were developed. Both models participating farmers grow NERICA rice, sorghum, millet, maize and groundnuts. In the uplands, to protect and sustain productivity of the land through soil and moisture conservation the first model will involve contour farming techniques including the construction of contour bunds, stabilised with perennial grasses and legumes, and establishment of hedge rows of vetiver and agro-forestry shrubs. These improvements are expected to improve yields by 25% for sorghum, millet and maize and 12.5% for groundnuts. The second model assumes the conservation farming techniques of the first model, combined with a stringent crop cultural regime seeking to enhance productivity. These measures would include, for instance, mulching, leaving crop residues on the farm, and the timely carrying out farming activities especially planting and weeding. Fertilisation with organic materials such as crop residues left on the farm to decay or grazed by livestock that leave manure on the land thereby enriching the land. These measures are expected to result in a 50% increase in yields for sorghum, millet and maize, and 25% for groundnuts. As most farming families on operate both on the uplands (mostly by men) and on the lowlands (mostly by women) both

45

models incorporate some land on the lowland, estimated to average 0.88 ha per farming family. In the lowlands only rice is produced on land where the project will support improved water management regime to enhance improved rice productivity. 7.1.2 The prevailing average farm gate prices are Dalasi 1.75 per kg for paddy rice, Dalasi 1 per kg for maize, sorghum and millet and Dalasi 2.50 per kg of groundnuts. With these prices the net returns on upland farming increased from Dalasi 1081 per ha without project to Dalasi 3508 with project. These financial benefits when compared to the production costs of the project yield a Financial Internal Rate of Return (FIRR) of 24%. Detailed description of the farm models and tables for estimating the FIRR are provided in Volume II. 7.2 Economic Analysis To evaluate the project’s economic viability and its impact on the national economy, a comparison has been made of the economic benefits with and without the project. On the basis of the production models described in paragraph 7.1 above this comparison yields an Economic Rate of Returns of 19%. The details of this analysis are presented in Volume II of the Report. The principal assumptions made in the analysis are: 7.3 Social Impact Analysis 7.3.1 The proposed PIWAMP will have a net positive socio-economic impact at three levels: (i) the community as a whole by emphasizing the community action planning process and decentralisation of community management of natural resources (ii) the poorest families who cultivate groundnut as a cash crop, because of improvements in the environment of upland farms due to soil and water conservation activities and (iii) women farmers, since the proposed project will specifically introduce NERICA as well as development of small ruminants. 7.3.2 At the community level, the proposed project will directly benefit about 5,370 farming families. 19,500 ha of lowland, upland, and swamp farmland will be improved in these villages leading to improvements in agricultural production and productivity. The community participatory approaches used and implemented through the Village Development Committees will ensure community sense of ownership and belonging which should result in beneficiaries’ commitment to the project and willingness to contribute in financial and physical terms to its success. Training in conservation farming will provide alternatives to groundnut cultivation for cash incomes and increased storage facilities and improved access to markets will reduce the incidence of seasonal distress sales. Participatory M&E will assist the community in project management and sustaining change. VDCs will be comprised of at least 50% women, which will contribute to their overall empowerment in village development planning. Other intangible effects which, because of their nature are difficult to value but which will nevertheless have a very positive a socio and environmental impact are related to the improvement of the environment through watershed management. Reduced soil erosion and increased water retention brought about by conservation measures will improve productivity and therefore also general nutrition and well being of the concerned beneficiaries.

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7.3.3 On average without project the average farmer operates on a total area of 2.52 ha. The project operations will result in expansion in the production areas in the lowlands such that by the end of project implementation an additional 0.75 ha per family would be in production resulting in the average family holding increasing to 3.63 ha. At the same time it is projected that the superior yields and value of the newly introduced NERICA rice varieties, farmers would convert some of the land now planted with lower value crops, especially sorghum, millet and groundnuts to planning NERICA rice. All in all it is projected that by the end of project implementation, on average, the upland area under millet and sorghum would fall from 1.02 to 0.87 ha, for groundnuts fall from 0.94 to 0.85 per participating farming family. On the other hand, land planted with NERICA rice would increase from almost zero to 0.27 ha per family. 7.3.4 Based on the results of the production models developed for the project’s economic an financial analyses, the average participating family would improve its annual income from by an estimated Dalasi 9,580 (about $343) from an estimated without project income of Dalasi 2,725 without project to Dalasi 12,300 with project. Overall the project will benefit directly over 30,000 members of farmers’ families. In addition, members of participating communities would benefit from the increased employment generated by the increased production and improved purchasing power of the participating families. 7.4 Sensitivity Analysis 7.4.1 Costs and benefits were found to be the most important factors influencing returns on investment. At 19%, the EIRR is highly sensitive to a reduction in production; i.e. a 20% reduction in production will generate an EIRR of 13%. An increase of 10% in investment cost will generate an EIRR of 17% while a delay of 2 years in the implementation of the project will result of EIRR of 13% as no benefits will be realized during the first years. All selected levels of change in key factors and their effect on the EIRR are summarized as follows:

- EIRR at current benefits 19% - 20% decrease in production 13% - 10% investment cost increase 17% - 10% costs increase and 10% decrease in revenue 15% - Two years delay in implementation 13%

7.4.2 In the light of these sensitivity analysis results, it is worth noting that the risk of falling revenues is minimised by the high level of yields expected to result from the planned improvements, especially on the lowlands as a result of improved wetlands management. Additionally, the soil and water conservation and yields enhancing activities to be undertaken in the uplands would stabilising yields thereby reducing the risk of major fluctuations in returns from the project. 8. CONCLUSIONS AND RECOMMENDATION 8.1 Conclusions

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The proposed project is a priority, which is consistent with the development objectives of the GOTG and is expected to contribute to the sustainable management of the natural resource base and substantially to the increase of food production and farm incomes, which would in the long term, contribute to improve household food security and reduce poverty. As a result of project interventions, yearly production of crops will be 6,813.5 tons of Sorghum/Millet; 2,541.2 tons of Maize; 3,275.7 tons of Groundnut and 397.1 tons of Upland paddy Rice and 31,080 tons of Lowland and Swamp Rice at the 8th year. The project is technically feasible, economically viable, socially desirable and environmentally sustainable. The project is in line with the Bank Group’s strategy for agricultural sector development for The Gambia. 8.2 Recommendation 8.2.1 It is recommended that a loan not exceeding UA 5.00 million be granted to the GOTG to finance the implementation of the project. The loan would be subject to the following conditions: (a) Conditions precedent to Entry into Force: 8.2.2 The entry into force of the loan agreement shall be subject to the fulfilment by the Borrower of the provisions of section 5.01 of the General Conditions applicable to loan agreements and guarantee agreements of the ADF. (b) Conditions precedent to first disbursement: 8.2.3 The obligations of the Fund to make the first disbursement of the loan shall be

conditioned upon the entry into force of the loan agreement and the fulfilment by the Borrower of the following conditions. The Borrower shall have:

i. Provided evidence satisfactory to the Fund of the opening of the Project Accounts and

Special Accounts in the Central Bank of Gambia to receive the proceeds of the loans (NTF, IFAD and Govt.) (Paragraph 5.5.2);

ii. Provided evidence satisfactory to the Fund of an action program for the implementation

of an adequate accounting system (para. 5.5.3);

iii. Provided evidence satisfactory to the Fund of the selection of an External Auditor who will be responsible for audit of revolving fund during the implementation (para. 5.5.3);

iv. Provided evidence satisfactory to the Fund of the signed Loan Agreement with IFAD.

v. Provided evidence satisfactory to the Fund of the existence or the establishment of the

Project Coordination Committee (PCC), to be chaired by the DOSA and which would include the members indicated under paragraph 5.2.1, i.e.: the permanent Secretary (or his nominee) of DOSFEA, the Director of DAS, the Director of DCD, the Director of SWMU, the Director General NARI, the Executive Director of NEA, the DOP, the DLS, the DOF, the chairwoman of the National Women Farmer’s Association, the chair of the

48

National Farmers’ Platform and two farmers (one female and one male) from each Division, selected by the DFAs. The Project Co-ordinator will act as the PCC’s secretary;

vi. Provided evidence satisfactory to the Fund of the establishment of the Project

Management Unit (PMU), with the appointment of a Project Co-ordinator, two Field Co-ordinators, an Administrative and Financial Controller and an Accountant’s clerk; an M&E Officer and his Assistant; a Community Mobilisation Officer and his Assistant, an Agronomist, a Forestry Expert, a Livestock Development Expert and Community Development overseers to assist the PMU. All staff ‘s CVs must have received prior approval of the Fund (Paragraph 5.2.2);

vii. Provided evidence satisfactory to the Fund of the provision of adequate office space for

the accommodation of the PMU; (c) Other Conditions.

i. Within six (6) months of the signing of the Loan agreement, submit to the Fund a Project Implementation Plan and a Project Procurement Plan for the whole project duration;

ii. Within six (6) months of the signing of the Loan agreement, submit to the Fund a draft

project AWP&B including a Training Programme both at local and international level for the first year, reviewed and approved by the PCC;

iii. Within six (6) months of the signing of the Loan agreement, submit to the Fund the draft

Agreements to be signed between the PMU and the Services Providers (NARI, SWMU, DAS, DCD, DLS, NGOs, etc.);

iv. Within six (6) months of the signing of the Loan agreement, provide evidence to the Fund

of the establishment of an internationally acceptable computer based accounting system;

v. Within twelve (12) months of the signing of the Loan agreement, provide evidence to the Fund of the recruitment of an external auditor competent to certifying the compliance of expenses paid through the initial advance or subsequent replenishments with the Bank's rules and regulations;

vi. Within twelve (12) months of the signing of the Loan agreement, submit to the Fund the

evidence of the commissioning in the PMU of a computer based accounting system to meet the needs of the co-financing Donors and the GOTG;

vii. Within twelve (12) months of the signing of the Loan agreement, submit to the Fund the

evidence that the remaining PMU staff have been appointed;

viii. Within twelve (12) months of the signing of the Loan agreement, provide evidence to the Fund of the elaboration and implementation of the Environmental and Social Management Plan (ESMP).

Annex 1

Page 1 of 1 PARTICIPATORY INTEGRATED WATERSHED MANAGEMENT PROJECT

MAP OF THE GAMBIA

This Map is intended exclusively for the use of the readers of the report to which it is attached. The names used and the borders shown do not imply on the part of the Bank and its members any judgement concerning the legal status of a territory nor any approval or acceptance of borders.

Annex 2

Page 1 of 1 PARTICIPATORY INTEGRATED WATERSHED MANAGEMENT PROJECT

Organization Chart

Department of State for Agriculture (DOSA)

PSC

Department of Planning

Department of Agriculture Services

Forestry Department

DCSoil and Water

Management Unit

Area Council

Co

N

PMU

National Agricultural Research Institute

Department of Community Development

Department of Livestock Services

Village evelopment ommittees Multi-disciplinary

Facilitation Teams

mmunityPlans

GOs - CBOs

Annex 3

Page 1 of 1 Participatory Integrated Watershed Management Project

Tentative Implementation Schedule

Beginning End Agency - Board Approval - Effectiveness of Loan Approval - Launching Mission - Project Implementation

Jan 2005

April 2004 Sept 2004 Oct 2004 Dec 2012

NTF GoTG

NTF GoTG

Pre-impl. Org. & Mngt - Preparation of detailed WP&B - Preparation bids for SWMU - Recruitment of TA - Recruitment of NGO

Sept 2004 Sept 2004 Sept 2004 Sept 2004

Oct 2004 Dec 2004 Dec 2004 Dec 2004

PMU PMU PMU PMU

1. Capacity Building - Implementation of start-up workshops - Sensitisation Workshops - Training of VDCs - Training of Women kafos - Training of Extension Staff - Training of MDFTs - Study tour of extension staff - AMTA training - M&E by DOP - M&E of EISS by NEA

Jan 2005

April 2005 July 2005 Jan 2005 Jan 2005 Jan 2005 Jan 2005

June 2006 Jan 2005 Jan 2005

March 2005 June 2005 Dec 2006 Dec 2010 Dec 2010 June 2006 Dec 2008 July 2006 Dec 2012 Dec 2012

Councils

VFCs MDFTs DOSA

DOSA/TA NEA PMU ADF PMU PMU

2. Watershed Development - Implementation of PRAs - Preparation CAPs - Undertaking of Field Surveys - Preparation of various maps - Soil and water conservation works - Enhancement of conservation farming - Seed multiplication and distribution - On-farm agro-forestry research - Support to horticulture/small livestock - Mapping of joint forest mngt. areas - Tree nursery expansion - Bush fire control - Construction of water points

Jan 2005 Jan 2005 Jan 2005 Aug 2005 Jan 2006 Jan 2005 Jan 2005 Jan 2005 Jan 2005 Jan 2005 Jan 2006 Jan 2006 Jan 2006

Dec 2005 Dec 2005 Jul 2005 Dec 2005 Dec 2010 Dec 2010 Dec 2008 Dec 2009 Dec 2010 Dec 2006 Dec 2010 Dec 2010 Dec 2010

NGO/VDC NGO/VDC

SWMU SWMU/TA

SWMU/VDC DOSA/VDC

NARI NARI

VISACAs FD/NGO/VDC

FD FD

FD PMU/DLS

3. Management and Coordination - Preparation of progress reports - Annual Audit - Mid-term Review - Project Evaluation - Project Completion report

Jan 2005 Jan 2005 July 2008 June 2010 July 2012

Dec 2012 Dec 2012 Aug 2008 Aug 2010 Dec 2012

PMU PMU

GOTG/ADF GOTG/ADF

GOTG

Annex 4

PARTICIPATORY INTEGRATED WATERSHED MANAGEMENT PROJECT

ENVIRONMENTAL AND SOCIAL MANAGEMENT SUMMARY 1. Brief description of the project 1.1 The Project’s objectives will be achieved through the design and implementation of a management plan for the selected watersheds. This plan will be composed of individual Community Action Plans on a micro-watershed basis. Agro-engineering works consist of establishing contour bunds, gully control measures and gabions as well as spot improving roads. About 300 metres of contour bunds will be established per ha, hence covering about 9,000 ha in total over the three divisions. These contour bunds will be stabilised by Vetiver hedgerows in an aesthetically pleasing manner. 1.2 Conservation farming entails strip cropping and tillage, contour farming, green manuring, crop rotation and agro-forestry, the promotion of an appropriate tree-crop based system that will enhance soil fertility at farmer level. Beneficiaries will be trained in principles and practices of soil and water conservation techniques. The project will undertake reforestation of about 1,000 ha, enrichment planting of 150 ha and establish about 80 km of boundary plantations as a protection against bush fires. In addition, the project will involve VDCs in the management of the community forest and grazing areas. 2. Major environmental and social impacts 2.1 Physical intervention in the environment is limited to soil and water conservation works and upland farming. Apart from the establishment of contour bunds, gully control and the spot rehabilitation of access roads, most other activities will be of agronomic nature. Positive impacts will be the reduction in the rate of soil erosion due to reduced water run-off by the contour bunds and the gabions, improved soil fertility as a result of the conservation farming practices, availability of water, especially during the dry season as a result of higher water infiltration rates. The different land development works are intended to increase water infiltration; reduce sheet and gully erosion and restore soil fertility, the latter will be achieved through conservation farming, crop diversification and improved crop production. 2.2 Negative impacts of the project are expected to be minimal as the soil and water conservation works will be limited to the establishment of contour bunds and gabions. There may be some loss of topsoil if vegetative materials will not protect the bunds. An additional possible negative impact of the project is vegetation depletion and soil erosion that may occur around water points where animals congregate. Locating water points strategically and closing them at certain times of the year can limit resource destruction. With regards to conservation farming, it is not expected that the introduction of new crops will have any negative environmental impact, as farming in the area is generally based on low input systems. When constructing SWC structures, care must be taken not to cause a significant reduction of the overall surface water flow by impoundment or diversion of the basin’s water, because downstream users and natural systems may experience adverse impacts. Other immediate impacts include decline in water quality from diminished dilution of pollutants, seasonal shortfall in supply for downstream users, reduction in wetland area, and increases in salinity levels.

3. Enhancement and mitigation programme The project intends to reforest about 1,000 ha, undertake enrichment planting of 150 ha and establish about 80 km of boundary plantations as a protection against bush fires. The resulting improvement in vegetative cover will in turn reduce run-off and increase infiltration of rainwater into the soil. The introduction of agro-forestry based farming systems will not only enhance the soil husbandry on-farm but also reduce pressure on the existing forest areas. Other positive impacts will result from an extensive community training programme, capacity building and institutional strengthening, which will lead to sustainability of the proposed approaches and reinforce future productivity of the land resources. 4. Monitoring program and complementary initiatives The NEA will be supported in the preparation of the project’s environmental and social management plan (ESMP). The project management team with the support of NEA will ensure that mitigation and enhancement measures are implemented, that they generate intended results and that they are modified, ceased or replaced when inappropriate. Included in the measures is the support to the fight against HIV/AIDS and Malaria in the form of awareness raising, training and malaria mosquito netting. The project will also finance operational costs related to the monitoring of the activities undertaken under the plan. 5. Institutional arrangements and capacity building requirements The National Environment Agency (NEA) is responsible for the implementation of the Gambia Environment Action Plan (GEAP), which is the main national policy framework for the sustainable management of the natural resources and the environment. The GEAP, developed in 1992/1993, is a very ambitious initiative, which aims at integrating environmental concerns into the country’s overall social and economic development strategy. It addresses three main areas; i.e. natural resources, energy and environmental health. 6. Public consultations and disclosure requirements The project is designed to operate in a participatory manner, whereby all activities will be implemented in close collaboration with local communities to increase their sense of ownership of the new techniques to be introduced under the project. The project beneficiaries will be involved in the development of the individual Community Action Plans on a micro-watershed basis, which will define zones for integrated crop production, plantation development and livestock activities. 7. Estimated costs A budgetary allocation of UA 26,000 has been made for environmental monitoring and management. 8. Implementation schedule and reporting Reports on environmental monitoring and management activities will be provided to the partners, including the Bank, NEA and will also be made available to the public, NGOs or other interested groups.

ANNEX 5 Page 1 of 2

BANK GROUP OPERATIONS IN THE GAMBIA As of March 2004

DATE OF APPROVAL

SOURCE OF FUNDS

DATE SIGNED LOAN AMOUNT

AMOUNT CANCELLED

AMOUNT DISBURSED

UNDISBURSED BALANCE

PERCENTAGE DISBURSED

DISBURSEMENT DEADLINE

TRANSPORT SECTOR 35%

28/10/76 Yundum Airport I NTF 03/11/1977 2.5 0.02 1.98 0.00 99 Completed

29/08/79 Banjul Serrakunda Highway ADB 12/03/1979 3.9 0.00 3.90 0.00 100 Completed

28/08/80 Laminkoto-Passimus Road ADF 7.5 8.00 0.00 0.00 0 Cancelled

22/06/82 Banjul Port I ADB 13/08/92 6.5 0.02 6.98 0.00 100 Completed

22/05/89 Banjul Serrakunda Highway (Sup) ADF 28/05/89 2.11 0.00 2.11 0.00 100 Completed

27/04/82 Yundum Airport IV ADF 13/08/82 4.5 0.79 3.72 0.00 83 Completed

27/11/89 Roads Rehabilitation NTF 12/04/1989 14.51 0.03 14.39 0.09 99 Completed

30/10/91 Ins. Sup. to Min of Works & Roads Study

TAF 31/01/92 3.76 0.00 2.58 0.19 93 31/12/2005

14/12/93 Banjul Port Development II ADF 14/01/1999 16 0.45 11.67 3.88 73 31/12/2004

09/04/97 Coastal Protection TAF 13/10/97 0.83 0.00 0.21 0.62 25 30/06/98

13/09/03 Coastal Protection Project ADF 03/10/01 9.59 0.00 0.91 8.68 90.5 31/12/05

Subtotal 71.2 9.30 47.42 4.88 77

SOCIAL SECTOR 20%

23/06/83 Education Feasibility Study ADF 15/07/83 0.64 0.25 0.39 0.00 100 Completed

27/11/86 Education I ADF 12/12/1986 4.15 0.00 4.09 0.05 98.7 Completed

14/03/90 Skills Development for Women (WID) TAF 27/02/1990 1.94 0.00 1.99 -0.05 102.0 Completed

14/03/90 Skills Development for Women (WID) ADF 27/02/1990 0.46 0.00 0.20 0.26 43 Completed

26/08/92 Education II ADF 12/10/92 4.97 0.00 3.94 1.03 79.0 Completed

14/09/92 Health Sector Studies TAF 14/10/92 0.69 0.00 0.69 0.00 100 Completed

11/09/02 Education III ADF 12/11/2002 10.00 0.00 3.00

29/10/92 Rehab. Of Health Training Facilities ADF 23/03/92 7.09 0.00 5.45 1.63 77.0 Completed

12/10/97 Poverty Reduction ADF 13/02/98 3.21 0.00 2.80 0.41 87.0 31/12/2003

12/10/97 Health II ADF 13/02/98 7.00 0.00 2.08 4.91 29.82 31/12/2003

18/02/00 Community Skills Development ADF 24/03/2000 4.40 0.00 0.49 3.91 11.14 30.06.2003

18/02/00 Community Skills Development TAF 24/03/2000 1.45 0.00 0.07 1.38 4.78 30.06.2006

Subtotal 46.00 0.25 22.19 13.53 61.0

ANNEX 5 Page 2 of 2

DATE OF APPROVAL

SOURCE OF FUNDS

DATE SIGNED LOAN AMOUNT

AMOUNT CANCELLED

AMOUNT DISBURSED

UNDISBURSED BALANCE

PERCENTAGE DISBURSED

DISBURSEMENT DEADLINE

PUBLIC UTILITIES 12%

14/10/75 Power I ADB 01/05/1976 2.00 0.00 2.00 0.00 100 Completed

23/01/79 Power II ADB 21/02/79 5.00 0.02 4.98 0.00 100 Completed

24/04/80 Banjul Sewerage and Drainage ADF 24/06/80 7.37 0.27 7.10 0.00 96 Completed

25/11/87 Greater Banjul Water Supply ADF 20/04/88 5.62 0.22 5.40 0.00 96 Completed

21/10/93 Engineering Studies for Rural Elect TAF 01/04/1994 1.37 0.00 0.66 0.71 48 31/12/2000

14/12/00 Rural Electrical Project ADF 19/01/01 2.97 0.00 0.16 2.81 5.0 28/02/2005

30/12/00 Rural Electrification Study ADF/TAF 26/11/02 0.749 0.00 0.16 2.81 5.0 30/06/04

12/06/02 Water Supply & Sanitation ADF/TAF 08/08/2002 1.18 0.00 0.00 1.18 100 30/06/2004

30/10/2002 Renewable Energy Study ADF/TAF - 0.75 0.00 0.00 0.75 100 30/10/2005

Subtotal 22.36 0.51 20.13 0.71 94

MULTI-SECTOR 10%

26/12/86 Multi -Sector Rehabilitation ADF 12/12/1986 9.21 0.00 9.211 0.00 100 Completed

16/01/90 SAL II ADF 25/01/90 6.45 0.25 6.199 0.00 96 Completed

20/02/88 Institutional Building for SDA TAF 13/02/89 2.00 0.00 1.969 0.03 98 Completed

14/10/98 Capacity Building Project TAF 19/11/200 0.76 0.00 0.50 0.38

78 31/12/2002

Subtotal 19.42 0.25 17.48 0.94 95

AGRICULTURE 20%

09/10/1974 Cotton Production Development ADF 20/11/74 1.84 0.56 1.29 0.00 100 Completed

18/03/82 Jahally Pacharr Rice ADF 13/08/82 4.24 0.01 4.24 0.00 100 Completed

27/10/83 Livestock Development ADF 02/07/1983 8.59 0.03 8.57 0.00 100 Completed

25/08/83 Fishing Development ADF 06/02/1984 7.32 5.60 1.72 0.00 100 Cancelled

23/02/88 Rice Development ADF 29/03/89 4.80 0.00 4.74 0.06 99 30/06/97

19/11/96 Lowland Agric Dev. Project ADF 20/12/96 4.00 0.00 3.10 0.90 78 31/12/2005

14/07/99 Livestock Development Study ADF 12/10/1999 0.58 0.00 0.36 0.22 62 05/03/2003

27/10/99 Peri-urban Smallholder Improvement ADF 08/11/1999 5.07 0.00 0.90 4.17 18 31/12/2006

17/05/00 Artisanal Fisheries Dev. Project NTF 19/01/2001 2.90 0.00 0.21 2.90 7.4 31/12/2006Subtotal 39.34 6.20 25.12 8.25 74INDUSTRY 3%

29/11/79 Groundnut Processing Industry ADF 12/03/1979 4.61 3.45 1.15 75 Cancelled 22/12/00 Tourism Master Plan Study TAF 22/11/2000 0.815 0.00 0.00 0.00 0 31/12/03 GRAND TOTAL 210.055

19.93 127.00 38.45 60.4

Annex

THE GAMBIA

THE PARTICIPATORY INTEGRATED WATERSHED DEVELOPMENT PROJECT

(PIWAMP)

CORRIGENDUM

1. Project Appraisal Report Project Information Sheet Under item number (9). Other Sources of Finance, the IFAD fund is amended to be UA 4.85 million instead of UA 4.95 million. Project Matrix Under component 2) ”Watershed Development ”, the first verifiable indicator will read as follows “incremental upland crop productions by PY1 of: Early millet/sorghum: 1,048 tons; Maize: 318 tons; Rice: 53 tons. Incremental lowland rice by PY6: 26,580 tons. Report (1) Page 23, para. 4.5.6: The abbreviation “SMC” should be replaced with “Community Mobilisation Co-ordinator (CMC)” and be added to the list of abbreviations. (2) Page 25, para. 4.5.17: First sentence is amended to read as follows “The project will also support NARI to re-establish its supervision of farmers in seed multiplication, to ensure that high quality seed is available for farmers all time, and especially in drought years”. (3) Page 36, para. 5.2.3: Line number 12 should read as follows to match with IFAD requirements: “The Department of Planning will be responsible for the independent annual evaluation report. (4) Page 37, para. 5.3.2: Replace NTF with ADB through out the Project document. (5) Page 40, para. 5.4.3 is amended to read as follows: “Goods: Field and Office equipment valued at UA 660,000 and motorcycles valued at UA 329,000 will be procured through National Shopping (NS) because they can be acquired in the country and there are adequate number of suppliers to ensure fair competition. Survey equipment amounting at UA 60,000 will be procured under International Shopping (IS) due to the specialized character of this equipment, requiring standard specifications.” (6) Page 40, para. 5.4.4. is amended to read as follows: “Consultant services required for the Semi-Annual review of the Revolving Funds and the Annual Auditing of the projects Accounts, the Mid-Term Review of the Project and its Completion (UA 115,000), shall be procured on the basis of Shortlists, with selection procedures based on technical quality with price consideration. Malaria campaigns (UA 15,000) will be carried out by the Department of State for Health and Social Welfare (DoSHSW). Training activities (UA 534,000) will be carried out by reputable and specialized training institutions acceptable to the Bank.

2

Monitoring of the project and annual evaluation of the PMU (UA 14,000) will be undertaken by the Department of Planning (DOP). Operating and maintenance services for vehicles and field equipments as well as travel and subsistence allowances (UA 441,000) will be procured trough existing Government procedures acceptable to the Bank. (7) Page 43, the heading of Table number 6.1 should read as follows: “Recurrent Costs UA’000”. (8) Page 47, Conditions precedent to First Disbursement:

(a) Conditions (B), from i) to vii), the word “Bank” is replacing the word “Fund”. (b) Condition (B), v) should read as follows: “provided evidence satisfactory to the

Bank of the existence or the establishment of the Project Coordination Committee (PCC), to be chaired by the Department of State for Agriculture (DOSA) and which would include the following members:

The Permanent Secretary (or his nominee) of Department of State for Finance and Economic Affairs (DOSFEA), the Director of Department of Agricultural Services (DAS), the Director of Department of Community Development (DCD), the Director of Soil and Water Management Unit (SWMU), the Director General of National Agriculture Research Institution (NARI), the Executive Director of National Environmental Agency (NEA), the Department of Planning (DOP), the Department of Livestock Services (DLS), the Department of Forestry (DOF), the Chair of the National Women Farmer’s Association, the Chair of the National Farmers’ Platform and two farmers (one female and one male) from each Division, selected by the District Farmers Associations (DFAs). The Project Co-ordinator will act as the PCC’s secretary;”