DOCUMENT OF The World Bank FOR OFFICIAL USE ONLY Report No: PAD1664 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 71.8 MILLION (US$100 MILLION EQUIVALENT) TO THE REPUBLIC OF CAMEROON FOR A LIVESTOCK DEVELOPMENT PROJECT October 5, 2016 Agriculture Global Practice Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
Transcript
DOCUMENT OF
The World Bank
FOR OFFICIAL USE ONLY
Report No: PAD1664
INTERNATIONAL DEVELOPMENT ASSOCIATION
PROJECT APPRAISAL DOCUMENT
ON A
PROPOSED CREDIT
IN THE AMOUNT OF SDR 71.8 MILLION (US$100 MILLION EQUIVALENT)
TO THE
REPUBLIC OF CAMEROON
FOR A
LIVESTOCK DEVELOPMENT PROJECT
October 5, 2016
Agriculture Global Practice Africa Region
This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.
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CURRENCY EQUIVALENTS
(Exchange Rate Effective September 8, 2016)
Currency Unit = C.F.A. Francs (XAF) XAF 581 = US$1
US$1 = SDR0.71718519
FISCAL YEAR January 1 – December 31
ABBREVIATIONS AND ACRONYMS
AB Agro-Business ACEFA Programme d’Amélioration de la Compétitivité des Exploitations Familiales
Agropastorales (Agricultural Family Enterprises Competitiveness Support Program) ACEP Agence de Crédit pour l’Entreprise Privée au Cameroun (Credit and Saving Agency) ACREST African Center for Renewable Energy and Sustainable Technology ACVUC Association des Communes et Villes Unies du Cameroun (United Communes and Cities
Association of Cameroon) AFD Agence France de Développement (French Development Agency) AFOP Programme d’Appui à la Rénovation et au Développement de la Formation
Professionnelle dans les secteurs de l’Agriculture, de l’Elevage et de la Pêche (Agro-Pastoral Training Renovation and Development Project)
AMO Programme d’Appui à la Maitrise d’Ouvrage des Administrations du Secteur Rural (Rural Sector Public Procurement Management Program)
ANENCAM Association Nationale des Etablissements de Microfinance au Cameroun (National Association of Microfinance Institutions in Cameroon)
APESS Association pour la Promotion de l’Elevage au Sahel et en Savane (Association for the Promotion of Livestock in the Sahel and Savannah)
ASF African Swine Fever ASGIRAP Programme d’Appui à la Sécurisation et à la Gestion Intégrée des Ressources
Agropastorales (Agro-pastoral Resources Management and Security Support Project) AWPB Annual Work Plan and Budget BICEC Banque Internationale du Cameroun pour l’Epargne et le Credit (International Bank
for Saving and Credit of Cameroon) BID Banque Islamique de Développement (Islamic Development Bank) BP Business Plan CAA Caisse Autonome d’Amortissement (National Debt Management Agency) CAADP Comprehensive Africa Agriculture Development Program CAMAGRO Cameroon Agro-Pastoral Portal CAMTEL Cameroon Telecommunication Company CAN Coupe d'Afrique des Nations de football (African Nations Football Cup) CAPEF Chambre d’Agriculture, des Pêches, de l’Elevage et des Forets (Chamber for
Agriculture, Fishery, Livestock and Forest) CAS Country Assistance Strategy CAR Central African Republic CBPP Contagious Bovine Pleuropneumonia Disease
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CDP Communal Development Plan CE/S/E Central/South/East regions CIG Common Initiative Group CGEW Cameroon Gender and Environmental Watch CGIAR Consultative Group for International Agricultural Research CNOPCAM Concertation Nationale des Organisations Paysannes au Cameroun (Cameroon
National Concertation of Producer Organizations) CPF Country Partnership Framework CSA Climate Smart Agriculture CSO Civil Society Organizations C2D Contrat Désendettement Développement (Debt Reduction and Development Contract) DA Designated Account DAG Direction de l’Administration Générale (General Administration Directorate) DEPCS Division des Etudes, de la Planification, de la Coopération et des Statistiques
(Directorate of Studies, Planning, Cooperation and Statistics) DPAIE Direction des Pâturages, de l’Alimentation Animale et des Infrastructures d’Elevage
(Directorate of Pastures, Animal Feed, and Livestock Infrastructure) DSCE Document de Stratégie pour la Croissance et l’Emploi (Growth and Employment
Strategy Paper) DVS Directorate of Veterinary Services EDF European Development Fund EIRR Economic Internal Rate of Return ESIA Environmental and Social Impact Assessment FAO Food and Agriculture Organization of the United Nations FI Financial Institutions FMD Foot and Mouth Disease FN/NO/AD Far North/North/Adamawa regions GDP Gross Domestic Product GEF Global Environment Fund GHG Greenhouse Gas GIS Geographic Information System GOC Government of Cameroon GRM Grievance Redress Mechanism ICT Information, Communication and Technology ICRAF International Center for Research in Agroforestry IDA International Development Association IDP Internal Displaced People IEG Independent Evaluation Group IFAD International Fund for Agriculture Development ILRI International Livestock Research Institute IPF Investment Project Financing IRAD Institut de Recherche Agricole pour le Développement (Agronomy Research Institute
for Development) ISP Implementation Support Plan ISR Implementation Status Report LDP Livestock Development Project LIFIDEP Livestock and Fishery Development Project LO Livestock Operator LMIC Low and Middle Income Country LSP Local Service Providers LT/SW/W/NW Littoral/South-West/West/North-West regions
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MINAS Ministère des Affaires Sociales (Ministry of Social Affairs) MINEPAT Ministère de l’Economie, de la Planification et de l’Aménagement du Territoire
(Ministry of Economy, Planning and Regional Development) MINEPDED Ministère de l’Environnement, de la Protection de la Nature et du Développement
Durable (Ministry of Environment, Nature Protection and Sustainable Development) MINEPIA Ministère de l’Elevage, des Pêches et des Industries Animales (Ministry of Livestock,
Fishery and Animal Industries) MIS Management Information System MPPR Management Plans for Pastoral Resources M&E Monitoring and Evaluation MOU Memorandum of Understanding MSEG Mission Spéciale d'Eradication des Glossines (Special Mission for Tsetse Fly
Eradication) MT Medium Term NACC National Anti-Corruption Commission NAIP National Agriculture Investment Plan NCD Newcastle Disease NPCU National Project Coordination Unit NGO Non-Governmental Organization NIS National Institute of Statistics NPPT National Project Preparation Team NPV Net Present Value NVS National Veterinary Service OIE World Organization for Animal Health ONVC National Order of Veterinarians in Cameroon PACA Projet d’Amélioration de la Compétitivité Agricole (Agricultural Competitiveness
Project) PAD Project Appraisal Document PADMIR Projet d’Appui au Développement de la Micro-finance Rurale (Rural Microfinance
Development Support Project) PAGEPA Projet d’Appui à la Gestion Equitable et Durable de l’Espace Agropastoral (Agro-
Pastoral Land Management Support Project) PLANOPAC Plateforme Nationale des Organisations Professionnelles Agro-Sylvo-Pastorales et
Halieutiques du Cameroun (Platform for Professional Agro-Sylvo-Pastoral and Fisheries Organizations of Cameroon)
PAPA Projet d’Amélioration de la Productivité Agricole (Agricultural Improvement Program)PARI Institutional Reform Support Project PCT Project Coordination Team PCU Project Coordination Unit PDO Project Development Objective PIDMA Agricultural Investment and Market Development Project PIM Project Implementation Manual PFI Participating Financial Institutions PMU Project Management Unit PNDP Programme National de Développement Participatif (Community Development
Program Support Project) PO Producer Organization PP Productive Partnership PPP Public Private Partnership PPR Peste des Petits Ruminants (Sheep and goat plague) PRAPS Regional Sahel Pastoralism Support Project
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PSC Project Steering Committee PVS Performance of Veterinary Services REDD+ Reducing Emissions from Deforestation and Forest Degradation RESCAM Réseau d’Epidémio-Surveillance au Cameroun (Cameroon Epidemiology Surveillance
Network) RCU Regional Coordination Unit RPLRP Regional Pastoral Livestock Resilience Project RPSC Regional Pre-Selection Committee SCD Systematic Country Diagnostic SIGED Système Intégré de Gestion des Décaissements (Integrated Financial Management
System) SP Sub-Project SNV Netherlands Development Organization ST Short Term SME Small and Medium Enterprise TA Technical Assistance TMC Technical Monitoring Committee TTL Team Task Leader UNHCR United Nations High Commissioner for Refugees UNFCCC United Nations Framework Convention on Climate Change VZC Veterinary and Zoo technical Centers VC Value Chain
Regional Vice President: Makhtar Diop Country Director: Elisabeth Huybens Senior Global Practice Director: Juergen Voegele Practice Manager: Dina Umali-Deininger Task Team Leader: Omar Lyasse, Maniével Sène
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REPUBLIC OF CAMEROON Livestock Development Project
TABLE OF CONTENTS
Page
I. STRATEGIC CONTEXT .................................................................................................1
A. Country Context ............................................................................................................ 1
B. Sectoral and Institutional Context ................................................................................. 2
C. Higher Level Objectives to which the Project Contributes .......................................... 7
II. PROJECT DEVELOPMENT OBJECTIVES ................................................................9
A. PDO............................................................................................................................... 9
B. Project Beneficiaries ..................................................................................................... 9
C. PDO Level Results Indicators ..................................................................................... 10
III. PROJECT DESCRIPTION ............................................................................................10
A. Project Components .................................................................................................... 10
B. Project Financing ........................................................................................................ 16
C. Lessons Learned and Reflected in the Project Design ................................................ 17
IV. IMPLEMENTATION .....................................................................................................20
A. Institutional and Implementation Arrangements ........................................................ 20
B. Results Monitoring and Evaluation ............................................................................ 23
C. Sustainability............................................................................................................... 24
V. KEY RISKS and mitigation measures ...........................................................................24
Overall Risk Rating and Explanation of Key Risks .......................................................... 24
VI. APPRAISAL SUMMARY ..............................................................................................27
A. Economic and Financial Analysis ............................................................................... 27
B. Technical ..................................................................................................................... 28
C. Greenhouse Gas Accounting ....................................................................................... 30
D. Financial Management ................................................................................................ 30
E. Procurement ................................................................................................................ 31
F. Social (including Safeguards) ..................................................................................... 32
G. Environment (including Safeguards) .......................................................................... 33
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H. World Bank Grievance Redress .................................................................................. 34
Environment & Natural Resources, Gender, Health, Nutrition & Population, Jobs
Proposed Development Objective(s)
The Project Development Objectives (PDO) are to improve productivity of selected livestock production systems and the commercialization of their products for the targeted beneficiaries, and to provide immediate and effective response in the event of an Eligible Crisis or Emergency. .
Components
Component Name Cost (USD Millions)
Improvement of Livestock Services Access and Delivery
26.63
Improvement of Pastoral Productivity, Access to Markets, and Resilience of Pastoral Communities
25.98
Support to Livestock Value Chains Development 64.67
Project Coordination, management, Communication and Monitoring
16.87
.
Systematic Operations Risk- Rating Tool (SORT)
Risk Category Rating
1. Political and Governance Substantial
2. Macroeconomic Moderate
3. Sector Strategies and Policies Low
4. Technical Design of Project or Program Moderate
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5. Institutional Capacity for Implementation and Sustainability Substantial
6. Fiduciary Substantial
7. Environment and Social Substantial
8. Stakeholders Substantial
9. Other: Security-related risk Substantial
OVERALL Substantial .
Compliance
Policy
Does the project depart from the CAS in content or in other significant respects?
Yes [ ] No [ X ]
.
Does the project require any waivers of Bank policies? Yes [ ] No [ X ]
Have these been approved by Bank management? Yes [ ] No [ ]
Is approval for any policy waiver sought from the Board? Yes [ ] No [ ]
Does the project meet the Regional criteria for readiness for implementation?
Yes [ X ] No [ ]
.
Safeguard Policies Triggered by the Project Yes No
Environmental Assessment OP/BP 4.01 X
Natural Habitats OP/BP 4.04 X
Forests OP/BP 4.36 X
Pest Management OP 4.09 X
Physical Cultural Resources OP/BP 4.11 X
Indigenous Peoples OP/BP 4.10 X
Involuntary Resettlement OP/BP 4.12 X
Safety of Dams OP/BP 4.37 X
Projects on International Waterways OP/BP 7.50 X
Projects in Disputed Areas OP/BP 7.60 X .
Legal Covenants
Name Recurrent Due Date Frequency
Recruitment of staff to the National Project Coordination Unit (NPCU) Schedule 2, Section I, A, 4
24-May-2017
Description of Covenant
The Recipient shall recruit to the NPCU, not later than three (3) months after the Effective Date, a junior procurement officer, an accountant, an internal auditor, an animal health specialist, a livestock
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production development and quality management specialist, a value chain and economic partnership specialist, a socio-environmental specialist and a monitoring and evaluations specialist; all with qualifications and terms of reference acceptable to the Association.
Name Recurrent Due Date Frequency
Recruitment of staff to the Regional Coordination Units (RCU) Schedule 2, Section I, A, 4 (b)
24-May-2017
Description of Covenant
The Recipient shall recruit to the RCU, not later than three (3) months after the Effective Date, a procurement assistant, a financial management assistant, and a monitoring and evaluations specialist; all with qualifications and terms of reference acceptable to the Association.
Name Recurrent Due Date Frequency
Recruitment of Third-Party verification agents Schedule 2, Section I, H
24-Aug-2017
Description of Covenant
The Recipient shall recruit, no later than six (6) months after the Effective Date and thereafter maintain, throughout Project implementation, third-party verification agents, with qualifications, experience, and terms of reference satisfactory to the Association, for purposes of the technical third-party verification of the activities to be carried out under Part B.3 of the Project.
Name Recurrent Due Date Frequency
Training procurement staff Project Coordination Team and the Tender Board Schedule 2, Section III, E
24-Apr-2017
Description of Covenant
The Recipient shall, no later than two (2) months after the Effective Date, train the procurement staff of the Project Coordination Team and the Tender Board in the use of the Association’s procurement procedures in a manner satisfactory to the Association.
Name Recurrent Due Date Frequency
External Auditor Schedule 2, Section II, B (5)
24-Jul-2017
Description of Covenant
The Recipient shall recruit, not later than five (5) months after the Effective Date, an external auditor with qualifications, experience and term of reference acceptable to the Association.
Name Recurrent Due Date Frequency
Annual Work Plans and Budgets Schedule 2, Section I, F (1)
24-March-2017
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Description of Covenant
The Recipient shall prepare or cause to be prepared for the purpose of forwarding to the Association not later than November 30 in each calendar year (or one month after the Effective Date for the first year of Project implementation), a draft annual work plan and budget for the Project (including Training and Operating Costs) for the subsequent calendar year of Project implementation, of such scope and detail as the Association shall have reasonably requested.
Name Recurrent Due Date Frequency
Installation of a computerized financial and accounting system Schedule 2, Section II, B (4)
24-May-2017
Description of Covenant
The Recipient shall install for the purposes of the project, not later than three (3) months after the Effective Date, a computerized financial and accounting system with consolidation and decentralized modules within the NPCU and the RCUs, in a manner satisfactory to the Association. .
Conditions
Source Of Fund Name Type
IDA Recruitment of key staff to the National Project Coordination Unit and the RCUs Article IV, 4.01 (a)
Effectiveness
Description of Condition
The Recipient has recruited to: (i) the NPCU, a project coordinator, a procurement specialist, and administrative and financial management specialist, in accordance with the provisions of Section I.A.4 (a) (i) (A) of Schedule 2 to the Financing Agreement; and (ii) each RCU, a regional coordinator and an accountant, in accordance with the provisions of Section I. A. 4(b) (i) (A) of Schedule 2 to the FA.
Source Of Fund Name Type
IDA Tender Board Article IV, 4.01 (b)
Effectiveness
Description of Condition
The Recipient has established the Tender Board in accordance with the provisions of Section I.A.6 of Schedule 2 to the Financing Agreement.
Source Of Fund Name Type
IDA Project Implementation Manual Article IV, 4.01 (c)
Effectiveness
Description of Condition
The Recipient has adopted the Project Implementation Manual in accordance with the provisions of Section I.C of Schedule 2 to the Financing Agreement.
Source Of Fund Name Type
IDA MPPR Sub-project (SP) Grants Schedule 2, Section IV, B. 1 (b)
Disbursement
Description of Condition
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No withdrawal shall be made under Category (2), until the Recipient has adopted a manual of procedures for the selection and financing of MPPR Sub-projects (“MPPR Sub-projects Manual”), in form and substance satisfactory to the Association.
Source Of Fund Name Type
IDA PO Sub-project (SP) Grants Schedule 2, Section IV, B. 1(c)
Disbursement
Description of Condition
No withdrawal shall be made under Category (3), until the Recipient has adopted a manual of procedures for the selection and financing of PO Sub-projects (“PO Sub-projects Manual”), in form and substance satisfactory to the Association.
Source Of Fund Name Type
IDA Emergency Expenditures Schedule 2, Section IV, B. 1 (d)
Disbursement
Description of Condition
No withdrawal shall be made under Category (4) for Emergency Expenditures under Part A.4 of Schedule 1 to the FA, unless and until the Association is satisfied, and has notified the Recipient of its satisfaction, that all of the conditions stipulated under Schedule 2, Section IV B.1. (d), (i), (ii), (iii) and (iv), to the Financing Agreement, have been met in respect of said activities.
Team Composition
Bank Staff
Name Role Title Specialization Unit
Omar Lyasse Team Leader (ADM Responsible)
Senior Agriculture Economist
Agriculture Economist
GFA12
Manievel Sene Team Leader Senior Agricultural Specialist
Agriculture Specialist
GFA12
Mohamed El Hafedh Hendah
Procurement Specialist (ADM Responsible)
Senior Procurement Specialist
Procurement GGO07
Francis Tasha Venayen
Financial Management Specialist
Financial Management Specialist
Financial Management
GGO25
Abel Paul Basile Bove Team Member Governance Specialist Governance GGO13
Alphonsus Nji T Achomuma
Team Member Senior Financial Sector Specialist
Financial Specialist
GFM01
Celestin Adjalou Niamien
Team Member Senior Financial Management Specialist
Financial Management
GGO26
Doina Petrescu Team Member Program Leader Program Leader AFCC1
Francois G. Le Gall Team Member Adviser Livestock GFA01
Ghada Elabed Team Member Young Professional Young Professional
GFA07
xiv
Jeanne d'Arc Edima Team Member Program Assistant Operations AFCC1
Johanna van Tilburg Safeguards Advisor Senior Social Development Specialist
Social Development
OPSPF
Jonas Mbwangue Team Member Consultant Agriculture Specialist
GFA07
Kolie Ousmane Maurice Megnan
Team Member Senior Financial Management Specialist
Financial Management
GGO26
Kouami Hounsinou Messan
Team Member Senior Procurement Specialist
Procurement GGO07
Kristyna Bishop Safeguards Specialist Senior Social Development Specialist
Social Development
GSU01
Laurent Valiergue Team Member Senior Forestry Specialist
Forestry GEN07
Luis M. Schwarz Team Member Senior Finance Officer Finance WFALA
Marie Roger Augustin Team Member Legal Analyst Legal LEGAM
Marie-Claudine Fundi Team Member Language Program Assistant
Operations GFA07
Myriam Mireille Veronique Chaudron
Team Member Livestock Specialist Livestock and Animal Health
GFA01
Nneoma Veronica Nwogu
Counsel Senior Counsel Lawyer LEGAM
Nora Kaoues Team Member Senior Agriculture Economist
Agriculture Economist
GFA07
Odilia Renata Hebga Team Member Communications Associate
Communications AFREC
Paula Andrea Rossiasco Uscategui
Team Member Social Development Specialist
Social Development
GSU01
Peter Ngwa Taniform Team Member Senior Transport Specialist
Transport GTI08
Pierre Jean Gerber Team Member Senior Livestock Specialist
Livestock GFA12
Stephane Forman Team Member Senior Livestock Specialist
Livestock and Animal Health
GFA02
Extended Team
Name Title Office Phone Location
Lazare Hoton Credit and Rural Finance Officer 390657055664 Rome
Marc Fantinet Senior Economist 39 06 5705 6855 Rome
Roger Pelle Principal Scientist 254204223835 Nairobi
Zac Tchoundjeu Regional Director West and Central Africa
237622215089 Yaoundé
.
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Locations
Country First Administrative Division
Location Planned Actual Comments
CAMEROON Far North To be confirmed (TBC)
X Cattle, Goat, Pork, Poultry, Sheep, Honey
CAMEROON North TBC X Cattle, Goat, Poultry, Sheep
CAMEROON Adamaoua TBC X Cattle, Goat, Poultry, Sheep, Honey
CAMEROON Center TBC X Goat, Pork, Poultry, Sheep, Honey
CAMEROON South TBC X Goat, Pork, Poultry, Sheep
CAMEROON East TBC X Goat, Pork, Poultry, Sheep
CAMEROON Littoral TBC X Goat, Pork, Poultry
CAMEROON South-West TBC X Goat, Pork, Poultry, Sheep
CAMEROON West TBC X Goat, Pork, Poultry, Sheep, Honey
CAMEROON North-West TBC X Cattle, Goat, Pork, Poultry, Sheep, Honey
.
Consultants (Will be disclosed in the Monthly Operational Summary)
Consultants Required? Consultants will be required
1
I. STRATEGIC CONTEXT
A. Country Context
1. Cameroon is a lower-middle income country, but continues to be typified by lagging social indicators and persistently high levels of poverty. The country has shown a relatively strong macroeconomic performance in recent years with growth reaching 4.6 percent in 2012, and estimated at between 5.6 to 5.9 percent between 2013 and 2015 (Systematic Country Diagnostic SCD, 2016), and GDP per capita per year estimated at US$1,429 in 2014. The pace of economic growth over the last decade has been too slow to lead to sustainable development, significant poverty reduction, or shared prosperity. The pattern of growth between 2001 and 2014 was such that the poorest 40 percent of households became worse-off, while the top 60 percent became better off. Cameroon has only achieved a few Millennium Development Goals, as evidenced by the country’s relatively low ranking in the 2014 Human Development Index (HDI), where it stands at 153rd out of the 188 countries tracked, explained by a de facto deterioration in its HDI scores over the last two decades.
2. Given its abundant natural resources and a relatively educated work force, Cameroon has great development potential which remains largely unrealized. Challenges related to weak governance, inadequate infrastructure, and an unfavorable business climate continue to thwart economic activity and make it hard to reach the growth rates required to reduce poverty in a sustainable manner. After a significant decrease in poverty rates in the 1990s, the poverty rate has barely shifted between 2000 and 2007. Since 2001, it is estimated that around 40 percent of the population lives below the poverty line and chronic poverty stands at about 26 percent. Using the national poverty line, poverty incidence was 38 percent in 2014. Poverty is widespread in the rural areas, where poverty incidence is much higher than in urban areas (57 versus 10 percent). These averages are high compared to other countries in the region with similar socio-economic characteristics.
3. Poverty is increasingly concentrated in the northern parts of the country. The number of poor in the North and Far North regions has increased between 2001 and 2014 from 2.1 million to 4.5 million, representing respectively 34 and 56 percent of all poor in the country. Northern Cameroon is affected by multiple poverty traps associated with insecurity, high rates of population growth, environmental degradation, malnutrition, isolation and low levels of productivity. The prevalence of acute malnutrition is particularly alarming in the North and Far North regions, where levels exceed the threshold of 10 percent indicating a serious nutrition emergency. The rate of malnutrition stands at 45 percent in the Far North region, whereas for Yaoundé and Douala it is about 13 percent. To reverse the food and nutrition situation, programs will have to be devised that are able to increase agro-pastoral productivity, lower post-harvest losses, improve storage and market infrastructure, implement standards and quality control, improve connectivity of production areas with markets, and promote nutritional education and food safety.
4. The high level of poverty in the northern part of the country is aggravated by prevailing high levels of insecurity.1 The 2016 World Bank-French Development Agency (AFD)
1 Based on the Systematic Country Diagnostic in May 2015, in 2014 the number of fatalities registered in North Cameroon due to conflict was comparable to those at the height of the conflicts in Mali or in Côte d’Ivoire.
2
fragility assessment states that Cameroon continues to experience significant external pressures, mainly related to the worsening security situation in the neighboring Central African Republic (CAR) and the increasing presence and activity of the violent extremist group Boko Haram in Cameroon’s Far North Region2. This is further exacerbated by internal stress factors, such as growing inequality, increasing tensions around land tenure, social fragmentation, and weakening conflict-resolution mechanisms. These internal and external challenges are increasingly putting pressure on the Government, leaving important segments of the population disgruntled regarding state performance and service delivery.
5. Cameroon has long sought for ways to diversify its economy away from the reliance on extractive industries (e.g. oil, timber) to foster broad based economic growth. The Government has targeted agriculture and livestock as priority sectors in poverty reduction and food security as about half the population live in rural areas and rely on the agricultural sector for their livelihoods. The livestock sector is relatively unexploited but recognized as an increasingly dynamic part of the agricultural economy. The potential to expand the sector’s contribution to economic growth is high given the country’s abundant natural resources suitable for producing a wide array of agricultural and livestock commodities within its diverse agro-ecological landscapes, in addition to the existence of favorable market prospects for these commodities (see sectoral context). The livestock sector has also a strong bearing on poverty-stricken communities, either directly through the provision of food products and services such as animal draught power and transport or indirectly through the provision of employment and wealth creation.
B. Sectoral and Institutional Context
6. The agriculture sector (crops, livestock, fisheries, and forestry) plays a significant role in Cameroon’s socio-economic development, as a food and feed provider, employer and income earner. Cameroon’s agriculture contributes about 20 percent to GDP and employs about 60 percent of the active population. Agriculture accounts for 40 percent of total exports, excluding oil. Food crops contribute 64 percent to the agricultural GDP, followed by livestock (13 percent), forestry (9 percent), industrial and export crops (8 percent), and fisheries (6 percent). The country is endowed with abundant natural resources3 suitable for producing a wide array of agricultural commodities within its diverse agro-ecological landscapes (sudano-sahelian, high savanna, highlands, mono-modal humid forest, and bi-modal humid forest).
7. Livestock accounts for 13 percent of agriculture GDP and employs 30 percent of the rural population. In Cameroon, one third of households4 operate in the livestock sector partitioned between poultry breeding (85.9 percent), goats (55.1 percent), sheep (27.2 percent), pigs (23.3 percent) and cattle (meat and milk: 17.9 percent). Cattle, poultry, pig and small ruminants are a source of cash income, nutrition, food security, and enhance the social standing of households in the rural communities. Poultry, pig, and dairy farming have certain specific
2 There has always been conflict between pastoralists and farmers, but these are increasing given the Boko Haram and CAR crises. Northern Cameroon is one of the traditional routes for Peuls transhumant pastoralists (Mbororos) from Nigeria to Chad and Central Africa. 3 The country has (i) 71,250 million km2 arable land, of which only 29 percent are exploited; (ii) about 2 million hectares of land suitable for irrigation, of which only 55,000 ha are irrigated (2.75 percent of the potential); (iii) 19 million hectares of natural pastures; and (iv) 22 million ha of forests representing 46 percent of the national territory. 4 1,500,000 households operate in the livestock sector (Source : “Enquête pastorale annuelle 2012”)
3
advantage over crops, fisheries and forestry, as they require less land, and are least influenced by seasonal changes in terms of production potential and supply to meet the existing high demand. Livestock systems are very much interlinked in the integrated farming systems in Cameroon. Livestock also plays a role in household savings and contributes to crop production through the provision of manure and animal-draught power.
8. Three main categories of livestock production systems co-exist in Cameroon: pastoral systems (extensive small and large ruminants), mixed crop-livestock systems (sedentary, village-based, traditional), and commercial systems (mainly semi-intensive peri-urban ventures). According to 2014 statistics from the Ministry of Livestock, Fishery and Animal Industries (MINEPIA), the composition of the livestock herds in Cameroon is as follows: 5,805,297 heads of cattle: 2,952,624 sheep, 6,298,059 goats, 3,112,973 pigs, and over 70 million chickens (cf. Maps in Annex 8). The main players5 in livestock production are smallholder livestock farms, small livestock operators, and livestock enterprises, most of which are headed by men (80, 60 and 90.6 percent respectively) whose education level does not exceed primary or secondary education. The Western region has the highest proportion of households headed by women (34.4 percent). There are more than 120,000 grassroots Producer Organizations (POs): 115,581 Common Initiative Groups (CIGs), 3647 unions of CIGs, and 59 federations of CIG unions; 1853 production co-operatives and 1,575 credit unions, 67 unions of co-operatives and 11 federations of co-operatives. POs include the producers that operate in a particular value chain (pork, milk, poultry, small and large ruminants, and other non-conventional farms) or on a territorial basis (town, county, and region). The most important are the ‘Association Nationale des Eleveurs et Engraisseurs de Porcs du Cameroun’ for the pig sector which comprises a total of 3,440 grassroots organizations under ten regional umbrella organizations (Cooperatives Confederation, Federation and Associations), and the National Confederation of Cattle Breeders of Cameroon for the cattle sub-sector. The majority of pastoral family production units are not affiliated with any farmer organization.
9. The domestic demand for animal products exceeds the national production and the gap will continue to increase6. The overall annual meat production is 265,816 tons7 (poultry: 45 percent, cattle: 35 percent, small ruminants: 7 percent, pigs: 13 percent). Milk production was estimated at 235,779 tons in 2013. Egg and honey production in 2013 was estimated at 65,116 tons and 2,815,800 liters respectively. Despite the large size of its herds, the country’s livestock sub-sector’s production does not meet national consumption requirements, and the domestic demand gap has increased from 2008 to 2015: milk and dairy products (42,252-83,380 tons), poultry
5 Pastoral survey (2012): Over 80 percent of livestock rearing households are headed by men, with the highest proportion being in the Adamawa region (nearly 95.6 percent). Over 60 percent of operators are men. 6 A recent value chain study on the various livestock sub-sectors (2015) states that the structured demand from Agri-Businesses (comprised of small, medium, and large enterprises and industries that are doing business in the livestock sector) for animal products is significant. The annual demand for meat and eggs from the main super markets (6) is estimated at 1,200 tons and 95 tons respectively. Butchers’ demand registered at slaughterhouses in cities including Yaounde and Douala, is estimated at 19,000 tons of meat per year. Small and medium processing enterprises are locally resourcing about 2,320 tons of milk per year, while the annual imports of milk and dairy products from small and large animal industries reached 28,000 tons (equivalent FCFA41 billion). There is a potential for productive partnerships between livestock enterprises and producer organizations (POs) that may enable development of livestock value chains, which could contribute to improving the performance of livestock production/productivity, increasing value added at PO level, and addressing market linkage issues around POs. 7 The Far North region is the leading meat producer of in Cameroon (21 percent). It is followed by the Center region (18 percent); the Littoral region (15 percent); the North-West region (11 percent); the South-West region (9 percent).
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(38,063-64,867 tons); beef (26,396-56,697 tons); pork (7,286-15,547 tons). Only egg production seems to be meeting, and at times exceeding, national demand. The discrepancy between national production and the demand for key animal products (Annex 8) shows that besides eggs, for which production is able to meet domestic needs, all the other animal industry sectors experience shortages. Gaps may continue increasing due to population growth, urbanization trends, and rapid growth of the middle class.
10. Livestock in Cameroon has the potential to significantly contribute towards economic growth, alleviation of food insecurity and malnutrition, and job creation. However, the potential for rapid economic transformation in agriculture and livestock has not been realized to date: total factor productivity does not contribute to growth and employment remains confined to the informal sector (Annex 8). Transitioning the mostly subsistence oriented livestock sector towards more commercial practices offers opportunities to better integrate livestock farmers within the value chains. Better developed value chains for products important to poor farmers will be instrumental to reducing transaction costs and improving market access for livestock farmers. This will require, inter alia, improved breeds, grading services, storage, auctions, extension, price information, transport and logistics.
11. Despite the country’s clear potential to develop the livestock sector, a series of constraints have led to low productivity and production among livestock subsistence producers in Cameroon. According to the Livestock Master Plan 2009 and the 2012 pastoral survey, the main constraints to all value chains are (i) limited education and lack of training for livestock farmers, (ii) health and sanitary constraints (prevalence of parasites and infectious diseases that affect 70 percent of herds), (iii) low productivity of local breeds and poor livestock feeding management (limited access to inputs, degradation of pasture lands e.g. invasion by non-palatable species like Chromolena odorata and Mimosa sp., limited water points for herds, limited access to pastures and other feed resources), (iv) weak advisory services that hinder access to innovative techniques by farmers, (v) low adoption rate of improved animal husbandry practices including sustainable range management and supplemental feeding that prevents high productivity, (vi) limited access to credit/rural finance (limited capacity of farmers to present viable projects for financing, high cost of financing; and absence of specific financial services/instruments for this segment), and (vii) limited access to post-harvest infrastructure that could maximize value-addition for livestock farmers.
12. Moreover, the livestock sector is inherently complex, with challenging characteristics that cannot be easily simplified; especially in a country like Cameroon where the diversity of agro-ecological zones enables a wide range of production systems (see Maps in Annex 8). In sum, raising ruminants (cattle, sheep and goats) is mostly done in semi-arid agro-pastoral areas (Adamaoua, Northern, Extreme-Northern and Eastern provinces) and relies on the health of rangelands (availability and accessibility of grazing lands and water), while raising short cycle species (e.g. pigs and poultry) is done all over the country (with a higher density in Southern, Western, North-Western, Littoral and Central provinces) and requires more access to inputs (feed, breeding) and habitat. This said, it is the very complexity of these animal production systems that also offers some of the greatest opportunities for economic development and poverty alleviation. In order to exploit these opportunities, a comprehensive and integrated approach would be required, as proposed through this project. This approach combines both technical and institutional
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interventions tailored towards these different livestock production systems across their respective value chains.
13. The sector is also subject to climate change related threats in terms of gradual depletion of water sources and water points (reduction of water resources to about 33 percent in the Far North region over the last two decades); infestation of animals and pastures by vectors causing diseases such as trypanosomiasis, African swine fever; and natural disasters such as floods and drought, more likely in the North region. Livestock production has also frequently been cited as harmful to the environment, and livestock farmers have been blamed for causing deforestation, desertification, pollution, and of contributing toward global warming through ruminants’ emissions of greenhouse gases. However, recent evidence suggests that such broad assumptions are simplistic and misleading, as environmental damage by livestock is more a reflection of the way people manage their animals. Indeed, the integration of animals, crops, and trees in agro-pastoral systems represents an essential prerequisite for sustainable land use and diversification of farm produce and a means for improving food security and rural livelihoods, whilst sustaining ecosystem health.
14. There is an important gender dimension to agriculture and livestock production in Cameroon. The role of women in consolidating and ensuring food security in rural households as an important aspect to socioeconomic development and beyond is crucial. According to the Government’s 2011-2020 Document of National Gender Policy (“Document de Politique Nationale Genre”), female-headed households are increasing in rural areas (from 21 percent in 2004 to 25 percent in 2010). Women are more engaged in small livestock (poultry, sheep and goats, etc.) while men mainly operate in the cattle sub-sector. Women are increasingly more engaged than men in the informal sector (42 percent in 1987 to 63 percent in 1996 and 77.5 percent in 2001), on a variety of income-generating activities to address their families’ needs. In addition, the livestock value chain analysis carried out by the Government in 2016 showed that women operate in milk production (19.4 percent) and in breeding of short cycle species in general (30 percent for small ruminants, 23 percent for pork and 27 percent poultry meat). Overall, women operate significantly in the processing of animal products such as milk (25 percent), as well as in the marketing of milk (39.6 percent), honey (31.7 percent), poultry (23 percent) and eggs (17 percent). Challenges faced by women in Cameroon’s agriculture include holding fewer agricultural assets such as farm tools and equipment, as well as having to split their time between farming and household chores. The livestock sector is influenced by a patriarchal organization that excludes women from possession of factors of production (land, pasture resources). It presents one of the major obstacles to the mortgage and guarantee necessary for the expansion of women's agricultural activities. Women’s ability to produce enough food is exacerbated by the physically exhausting labor and drudgery associated with farming practices that have remained unchanged for a long time. Therefore, supporting technologies that promote timesaving tasks as well as nutrition-sensitive activities performed by women is crucial for increasing agricultural production and improving maternal and child nutrition. The Project will support activities geared towards women.
15. The 2014-2020 National Agricultural Investment Program (NAIP) aims at transforming agriculture into a core economic driver that creates decent jobs and wealth to meet domestic and foreign demand, through the improvement of food and nutrition security in a sustainable development context. NAIP targets a rural growth standing over 10 percent in 2020
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and a livestock growth of 9.3 percent between 2010 and 2020 while the growth of the sector has increased from 2.6 percent in 2010 to 5.7 percent in 2014 (National Institute of Statistics 2013 and 2015). NAIP-identified investments in livestock include (i) inputs and equipment; (ii) production, processing and conservation infrastructure; (iii) health system; and (iv) diversification of animal production.
16. The Government’s priorities for the agriculture and livestock sectors are to improve productivity and competitiveness of the different segments of the sector, have the sector undergo a more pronounced commercialization process, secure farm- and pastureland, and create agriculture and livestock growth poles to attract young entrepreneurs. The Government endeavors to increase its investment in the sector to position agriculture and livestock as a major engine for economic growth and job creation. Improving the sector performance would also require a substantial improvement of the quality of expenditure planning, allocation, and implementation, as well as an increase of the national budget outlays directed towards the sector, which remains well below the 10 percent the Government pledged to attain in the 2003 Maputo declaration, in line with the CAADP framework8. Specifically, the portion of state expenditures on agriculture represented only 4.5 percent of total planned expenditures in 2012 and 20139. Indeed, the reallocation of resources from and to agriculture, the adoption of new technologies, and the development of new production areas are sources of growth within the primary sector with immediate positive consequences for poverty reduction. Poor farmers benefit from productivity gains while non-farmers in rural areas benefit from spillover gains. At the same time, the urban poor will likely benefit from lower food prices.
17. Particular attention needs to be paid to strengthening the institutional capacities to spur development of the livestock sector. The Ministry of Livestock, Fisheries and Animal Industries (MINEPIA) is responsible for planning and implementing all livestock and fisheries development activities. The staff at the national level of the Ministry is distributed mainly among four technical directorates (Animal Health; Animal Production and Industries; Pastures, Livestock Infrastructure and Animal Feed; and Studies, Planning, Cooperation and Statistics), supported by a Directorate of General Administration (“Secrétariat Général”). These directorates will be strengthened under the project to address key institutional weaknesses as government institutions are hampered by staff inexperience, staff shortages, lack of resources, and limited mobility. The fragmentation of the public institutions serving the agriculture and the livestock sector, especially at district level, is not efficient in delivering services. The mandates, responsibilities and relationships among the MINEPIA divisions will be re-examined through an institutional analysis to be carried out under the project in order to improve efficiencies of utilization of available human resources. MINEPIA's organization chart is shown in Annex 3.
18. The quality and quantity of livestock services provided at the farmer level needs to be improved. The field level of MINEPIA (or Livestock Services) are divided among Regional, Divisional, and District Livestock “Delegations” (LDs), in addition to various animal health and
8 The CAADP vision, which emerged from the Maputo Summit (2003), is to redefine the future of African agriculture by accelerating economic growth, minimizing poverty, and enhancing food security. In line with the CAADP Compact, Cameroon is expected to renew its commitment (along with the other African Union Heads of State) to the Maputo Declaration, which calls for governments to allocate at least 10 percent of national budgets to agriculture for accelerating growth to at least 6 percent per year. 9 Diagnostic Review of Basic Public Expenditures in the Agricultural Sector. (2003-2012), Final Report, April 2014.
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livestock centers (centres zootechniques et vétérinaires). The main responsibilities of the Livestock Services are preventive animal health care, food inspection, and animal production extension. The Livestock Services also carry out the main vaccination campaigns. However, they lack a systematic approach for extension and lack the resources to ensure adequate supervision of its field staff. Although the animal health system in Cameroon10 is relatively well organized, the epidemiological surveillance network is facing significant constraints such as: (i) lack of specialized staff in surveillance and diseases control; (ii) limited budget and logistical means; and (iii) low capacity of laboratories for diagnosis. MINEPIA’s extension services also suffer a shortage of personnel11 on the ground. In addition, the lack of coordination in the interventions of the various ministries engaged in rural development is a major constraint for the rational development of the livestock sector. As a result of the lack of funding for recurrent expenditures, contacts between producers and field staff are limited to those during the vaccination campaigns, and transfer of technology to the producer is almost nonexistent. The introduction of improved extension methods, targeted Technical Assistance, and sustained capacity building efforts are necessary to reactivate the Livestock Services and will be sought under the project.
19. Given the multi-faceted nature of the issues hampering the development of the sector, the project proposes a two-pronged approach to reduce the national deficit in livestock products and increase the contribution of the livestock sector to overall agricultural production and broad-based socio-economic development. First, a gradual improvement of traditional production systems needs to be pursued. The reduction of mortality and morbidity, the sustainable use of range land resources, and the development of a closer integration of crops and livestock would be important avenues to develop the traditional sector and reduce the drudgery of farm labor. Second, the emerging semi-intensive production systems need to be actively supported. Such production has a fast growth potential and fits well with available entrepreneurial skills. Poultry and other short-cycle species such as pigs, could therefore make an important contribution to meeting the growing demand. This project builds on major agriculture and livestock development initiatives currently underway in Cameroon, and will also draw from promising environmental and social programs developed by local communities with the support of Non-Governmental Organizations (NGOs).
C. Higher Level Objectives to which the Project Contributes
20. Government’s development strategy: The project is well aligned with the Government of Cameroon’s 2009–2019 “Growth and Employment Strategy” (DSCE), which recognizes the need for agricultural diversification, increased productivity, and large-scale public investment projects for the agriculture sector to contribute more than 20 percent of the country’s GDP and to become a major source of employment. In addition, the project will help the Government
10 Comprised of four pillars: (i) animal disease surveillance within a national disease surveillance network for diagnosis, sampling and reporting in regional (10) and divisional (58) veterinary services, and veterinary centers (760); (ii) disease control through annual vaccination campaigns against the major infectious diseases, outbreak management, and promotion of biosecurity measures; (iii) veterinary sanitary inspections and food safety measures; and (iv) 50 operating private veterinarians out of the 500 veterinarians registered in the National Veterinary Council. 11 Referring to the National Agricultural Extension and Research Program extension requirements are 2,460 Agricultural Extension Zones (ZV) and 381 Agricultural Extension Sectors (SV). However at ZV level there are 1,739 out of 2,460 posts, or 70 percent, are filled; at SV level, 266 out of 381 posts, or 70 percent, are filled. Two-thirds of extension agents are MINADER personnel and one-third are MINEPIA personnel.
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implement its 2015-2020 Rural Sector Development Strategy, validated in February 2015, which aims at achieving a rational transition to a green and inclusive growth economy leading towards sustainable development, attainment of emerging country status by 2035, and reduction of social inequalities. The Strategy’s specific goals include increased agriculture contribution to economic growth and employment, upgraded farming systems, increased agricultural production, improved food security and livelihoods of population, sustained natural resources and environment, improved institutional framework.
21. Climate change agenda: Because of climate change, Cameroon, like many other countries in the region, is at real risk of reduced agricultural production, natural resource degradation, food insecurity, and threats to the livelihoods of its vulnerable populations. The country’s size and the value of its natural resources underscore the importance of climate risks for Cameroon and the wider region. The Center for Global Development ranks Cameroon 94th out of 233 countries for “direct risks” related to agricultural productivity loss, defined as “physical climate impacts” and 52nd of 233 for “overall vulnerability, which takes into account the country’s “coping ability”12. To build resilience to the vagaries of climate change, Cameroon must focus on increasing agricultural productivity and commercialization in a sustainable way by addressing the key constraints mentioned earlier13. The proposed project, which offers a clear opportunity to address those multiple constraints, is well aligned with the World Bank’s Africa Climate Business Plan, particularly the first cluster of the plan (“strengthening resilience”). This cluster stresses initiatives that build and protect the resilience of the continent’s assets by investing in natural capital (landscapes, pastures, agricultural land, etc.), physical capital, and human and social capital (including improving livelihoods for more vulnerable individuals, to mitigate the effects of climate shocks on social cohesion).
22. Link with SCD and CPF: The project is fully aligned with the priorities identified in the 2016 Systematic Country Diagnostic (SCD), which has pointed to low rural productivity as a major constraint to combating the high levels of poverty that persist in rural areas amongst people who are largely self-employed (on and off the farm). This project’s focus on increasing livestock productivity and developing the associated value chains is consistent with the SCD analysis. The project proposes an integrated approach that addresses multiple obstacles at the same time in order to unlock the livestock sector’s potential and thereby improve the livelihoods of the targeted population. Although the 2015 - 2020 Country Partnership Framework (CPF) is still under preparation, the objective under the 2010-2014 Cameroon Country Assistance Strategy (CAS) of inclusive growth remains relevant for the CPF period, and the livestock sector will continue to be a key contributor. The project will support increased productivity and production, improved quality, and greater competitiveness of the livestock sector and animal value chains by: (i) improving farmers’ access to technology, inputs, credit, and markets and to basic/key infrastructure; and (ii) strengthening the institutional capacity of POs and animal services in Cameroon.
23. The World Bank Group Strategic Goals: Ultimately, the proposed operation will contribute to the World Bank Group Strategic goals of ending extreme poverty and boosting shared
12 http://www.cgdev.org/page/mapping-impacts-climate-change 13 Low use of agricultural inputs, natural resource degradation (particularly soil and water), low levels of private investment in primary production and in value addition, and poor rural infrastructure.
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prosperity in a sustainable manner. The World Bank Strategic Goals are closely associated with those of the Government, which aims in its DSCE to achieve, by 2035, higher middle-income status and to reduce poverty to 10 percent. The support to beneficiary livestock communities and herders will contribute to increased production, food security, improved livelihoods, as well as reduced vulnerability and poverty for extremely poor beneficiaries. The direct and indirect effects of the project could reach the poorest and hence contribute to reducing poverty that could be measured by production and income gains. By making value chains inclusive to smallholders through a productive partnerships and contractual mechanisms, the new operation will not only create/increase value added at both POs and Agri-businesses (ABs) levels, but also promote shared prosperity across the various actors in the targeted value chains.
II. PROJECT DEVELOPMENT OBJECTIVES
A. PDO
24. The Project Development Objectives (PDO) are to improve productivity of selected livestock production systems and the commercialization of their products for the targeted beneficiaries, and to provide immediate and effective response in the event of an Eligible Crisis or Emergency. 25. Target production systems. The project will target three priority livestock production systems considered strategic both for food security/national supply and for their comparative advantage on the regional markets: pastoral systems, mixed crop-livestock systems and commercial systems. The targeted species will be the following: cattle, small ruminants (sheep and goats), pigs, and poultry. In addition, and particularly to create income-generating activities geared towards females and youth, honey production will also be supported.
26. Geographic scope. For each of these species, the project will focus on the main production basins. As defined in the ‘Document de Stratégie de Développement du Secteur Rural, version 2014’, a production basin is an agro-ecological growing zone, a spatial unit for appropriate integral development of the best suited crop/livestock to the environmental conditions. The production basins are depicted in Annex 9.
27. Gender and nutrition orientation. As the impact of agriculture projects is greatly enhanced if nutrition considerations are more directly addressed, the project will also support activities geared to women’ groups/organizations to enhance household nutrition as well as specific investments for women such as expansion of women's agricultural activities and productivity.
B. Project Beneficiaries
28. Direct beneficiaries. Key beneficiaries of the proposed project are: i) livestock rearing households, including pastoralists; ii) the livestock farmer’s organizations and their apex institutions; iii) small and medium scale private livestock operators and enterprises; iv) vulnerable groups, particularly women and youth, and others at risk; and v) livestock support services, including the public livestock research and extension services, NGOs, and service providers involved in the targeted livestock value chains in the project areas. The project will focus on the
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main livestock production basins mapped in Annex 9. The proposed project is expected to benefit at least 120,000 livestock households and 20,000 small livestock operators and enterprises in target areas.
29. Indirect beneficiaries. Secondary beneficiaries include other livestock farmers not directly involved with the project activities. They will benefit from improved control of animal diseases. Value chain stakeholders (buyers and processors) will benefit from increased provision of livestock products. On the consumption side, consumers in Cameroon will benefit from increased and better quality national animal product supply. Other indirect beneficiaries are livestock industry service providers, including veterinarians, and inputs providers, including feed and veterinary medicines suppliers.
C. PDO Level Results Indicators 30. The following PDO level Results indicators have been identified:
(i) Productivity of targeted species by direct beneficiaries (cattle, sheep and goat, poultry, pig);
(ii) Incremental sales in targeted value chains (aggregated over all the targeted value chains)14;
(iii) Farmers reached with agricultural assets or services (of which female and youth)15; and
(iv) Farmers adopting improved agricultural technology (of which female and youth);
III. PROJECT DESCRIPTION
A. Project Components
31. The project will be structured as an Investment Project Financing (IPF), funded by an IDA credit in the amount of US$100 million over six years. The project will be structured around four components: (i) Improvement of livestock services access and delivery; (ii) Improvement of pastoral productivity, access to markets, and resilience of pastoral communities; (iii) Support to livestock value chains development and (iv) Project coordination, management, communication and monitoring. The first component is crosscutting and designed to improve access to key livestock services for livestock producers, especially animal health services, improved genetic material and high quality inputs, in addition to building basic capacity of core public services. The second component is designed to support productivity and marketing for the pastoral communities of smallholder households, while restoring the productive means of the poorest and vulnerable households in the North and Far North. The third component will support business linkages between livestock POs, buyers and financial institutions, and promote value addition at POs levels where business opportunities exist. The project will also pay particular attention to equitable participation of gender and youth through the project activities, and mainstream nutrition, especially under components 2 and 3. The fourth component will support implementation of the
14 This indicator will be measured for every targeted value chain. However, only the aggregate value over all the targeted value chains will be reported. 15 The project targets at least 120,000 livestock households and 20,000 small livestock operators and enterprises in target areas.
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first three components, inform the project execution and performance, while supporting studies that are essential to the project.
32. Component 1: Improvement of livestock services access and delivery (US$26.63 million: US$24 million IDA; US$0.09 million Beneficiaries; US$2.04 million Government; US$0.5 million PFIs). This component aims to improve access to key livestock services for livestock producers, especially animal health services, improved genetic material and high quality inputs. This component is structured around 4 sub-components, which are as follows:
33. Sub-component 1.1: Access to Animal health services. Strengthening the Veterinary services, especially epidemio-surveillance and early detection systems - will enhance the early detection and rapid response of major animal diseases such as avian influenza, Contagious Bovine Pleuropneumonia Disease (CBPP), ‘Foot and Mouth Disease’ (FMD), ‘Peste des Petits Ruminants’ (PPR), African Swine Fever (ASF) and Newcastle Disease (NCD) in the long term. It will also contribute to the control of "productivity" - affecting diseases, such as parasitic, vector-born or bacteriological ones, through strengthening the private veterinary practices and services, and reinforcing its links with the veterinary public authorities, through the sanitary mandate. For this, the sub-component build on the results from the evaluation of the quality of veterinary services conducted by the World Organization for Animal Health (OIE) in 2008, as well as the "Performance of Veterinary Services" (PVS) tool developed by this organization and its subsequent "Gap Analysis" undertaken in 2011.
34. This sub-component will be implemented by: i) improving the service delivery capacity of Veterinary Services (VS), including both public and private veterinary services; and ii) supporting surveillance and control of animal diseases. In terms of the VS delivery capacity, the project will finance: a) the development and operationalization of an animal health information system at the Directorate for Veterinary Services (DVS); b) the operationalization of the regulatory framework governing the animal health system (including the "Sanitary Mandate"16), including support to the Government’s field services (VZC), and private veterinary practices; c) strengthening the National Order of Veterinarians in Cameroon to ensure the quality of service delivery; and d) training and awareness building of POs.
35. Support to surveillance and control of animal diseases will include financing for: a) surveillance activities (“passive” and “active”); b) a vaccination campaign for PPR, to vaccinate an incremental 15 percent of small ruminants, in line with Government’s commitment to the global effort to eradicate PPR in the world17; and c) the update and field-testing of animal health emergency plans. 36. Sub-component 1.2: Access to high quality inputs. The sub-component will support: (i) access to improved genetic material, and (ii) access to improved feed, particularly improved fodder. To improve the availability of improved breeds and pasture seeds, the project will: (i) assist MINEPIA to develop a strategy for improving the supply of improved animal genetic resources in the country and an associated investment plan, and (ii) partially finance the investment plan, 16 The “Sanitary Mandate” regulates the devolution of certain aspects of animal health service provision from the public to the private sphere. 17 The Global Strategy for the Control and Eradication of PPR has been prepared by the FAO-OIE GF-TADs Working Group (2015)
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particularly by providing support to five breeding and seed centers18, pre-identified during the preparation19, which will ensure supply of improved breeds and pasture seeds to the POs targeted under components 2 and 3. To improve feed quality, the project will: (i) promote good practices in feed production at farm level, and develop norms and quality standards for feed for the targeted value chains, and (ii) support MINEPIA’s basic control activities to ensure the quality of breeds, feed and pasture seeds provided to the beneficiaries.
37. Sub-component 1.3: Institutional support, capacity building and communication. This sub-component will strengthen staff capacity in the ministry to carry out its core responsibilities including sector analysis, policy preparation and implementation, sector monitoring and evaluation. Activities include : (i) identification of short- and long-term training and education needs to increase the pool of specialized experts and financing of this plan for targeted trainings to build long-term capacity in the country20, (ii) improvement of the MINEPIA’s information system, (iii) development of a communication strategy and implementation plan on the sector to improve the relation between the ministry and key stakeholders involved in the targeted value chains, including private investors and financial institutions , (iv) support to the ongoing development of food-safety norms for livestock products, quality standards and their reinforcement, which will include the provision of specialized equipment, transportation, etc., (v) support (capacity building, equipment, and locally sourced technical assistance) to ten regional centers of information and promotion of livestock products (‘Maisons des éleveurs’), (vi) strengthening of inter-professional livestock associations (‘Inter-professions’), and (vii) development of a contingency emergency response plan, to increase preparedness in the event of a crisis affecting the livestock sector.
38. Sub-component 1.4: Contingency emergency response. Following an adverse natural event that causes a major natural disaster, the government of Cameroon may request the Bank to reallocate project funds to support response and reconstruction. This component will draw resources from the unallocated expenditure category and/or allow the government to request the Bank to re-categorize and reallocate financing from other Project components to partially cover emergency response and costs. This component could also channel additional funds should they become available as a result of an eligible emergency. Detailed operational guidelines acceptable to the World Bank for their implementation of the Contingency Emergency Response Plan, developed under sub-component 1.3 will be prepared during the first year of project implementation. Should this component be triggered, all expenditures will be made in accordance with paragraph 12 of OP 10.00 and will be reviewed and accepted by the World Bank before any disbursement is made. In accordance with paragraph 12 of OP 10.00, this component would provide immediate, rapidly disbursing support to finance goods (positive list agreed with governments), works, and services needed for response, mitigation, and recovery and reconstruction.
18 An MOU will be signed between these centers and the Project, detailing the modalities of supplying improved breeds and seeds to the target beneficiaries. 19 Kounden and Centre stations for pigs, Louguere and Dogba for small ruminants and fodder crops, Wakwa for fodder crops 20 Specific attention will be given to include both male and female professionals in long and short trainings
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39. Component 2: Improvement of pastoral productivity, access to markets, and resilience of pastoral communities (US$25.98 million: US$24 million IDA; US$1.14 million Communes; US$0.84 million Government)
40. The component's main objective is to increase the contribution of pastoral areas to the domestic supply of meat (especially for urban markets) while upgrading livestock production systems (cattle, small ruminants, poultry) for poor and conflict-affected communities. The component will increase productivity of pastoral production systems and promote transhumance and security by financing Sub-Projects (SPs) that will be presented and managed by local communities. This component will adopt a collective and community-based rangelands management approach. Since Communal Development Plans (CDPs) include priority investments for communities, community SPs on pastoral management will be identified in CDPs already prepared within the Community Development Program Support Project (Programme National de Développement Participatif: PNDP-II and III), and implemented following the same mechanism used by PNDP-III. Component 2 consists of three sub-components: (i) Support to animal production practices and the community based management of pastoral areas; (ii) Support to commercialization and marketing of pastoral livestock products; and (iii) Provision of animals (cattle, small ruminants, and poultry) to households in conflict-affected communities.
41. Thirty communes will be selected for the implementation of the component, in areas used by pastoralists, either as main resource (‘territoire d’attache’) or transit area: these are the entire regions of Far North, North and Adamawa, as well as part of the regions of North-West, West, Centre and East. The direct beneficiaries of the component are pastoralists, particularly those of them, large or small holders, who want to move towards a more commercially oriented activity. Implementation partnerships will be explored with agencies currently active in the targeted regions (e.g. SNV, APESS21, and other NGOs).
42. Sub-component 2.1 – Support to animal production practices and the community based management of pastoral areas. The main objective of this subcomponent is to improve the livestock production practices (including herd management) by promoting better management of pastoral and animal resources, increasing forage productivity, securing pastoralists' access to resources, and reducing conflicts. At the core of the sub-component is the support to dialogue processes and shared management of resources as well as the implementation of communal level management plans following the approach developed and successfully implemented under PNDP. More specifically, activities will include: (i) Participatory development of management plans, (ii) Implementation of the management plans, (iii) Improvement of production practices. To increase productivity at animal level (weight gains) and herd level (reproduction rates), this sub-component will strengthen the capacity of POs following successful models currently implemented by development partners in the target areas through the participatory development and implementation of adapted technical itineraries for herd management. Particular attention will be paid to the active and meaningful participation of vulnerable groups such as women, youth, elderly in the preparation and implementation of community-based pastoral development plans.
43. Sub-component 2.2 – Support to commercialization and marketing of pastoral livestock products. The main objective of this subcomponent is to increase the amount and quality
21 Association Pour la Promotion de l’Elevage au Sahel et en Savane
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of animals and animal products marketed by pastoral communities in intervention areas which implies a more pronounced shift towards market-orientation and commercialization. Specifically, activities will include: i) Strengthening and/or support for the establishment of dialogue platforms bringing together the various parties involved in the management of municipal markets and marketing of animals; ii) Strengthening the marketing capacity among pastoralists and pastoralists associations; and iii) Improving market information, focusing on the access by pastoralists to pertinent information for sale.
44. Sub-component 2.3. Improving the resilience of poor and conflict-affected communities. This sub-component will improve the resilience of the poorest or the most vulnerable communities affected by the crisis in the North and Far North regions of the country. Given the insecure, and at times dangerous environment prevailing in these areas, implementation will follow a simplified design by focusing on investments that will yield results in the short term and address the immediate effects of poverty and of conflict and fragility, whilst engaging these communities and community based organizations directly to strengthen their resilience and facilitate the emergence of a more inclusive social contract. This sub-component will provide beneficiaries with productive safety nets, that are considered by the SCD as top priorities in terms of contribution to poverty reduction and political feasibility, and that focus on livestock value chains that are most relevant for poor farmers. Sub-component 2.3 will also support specific activities geared towards women’s groups, such as investment in nutrition-sensitive agricultural interventions and behavioral change communications strategies for women on issues related to access to new technologies, maternal care, and child feeding practice. Depending on real opportunities and needs, the support will include labor saving devices to reduce women’s workload, promotion of diversified food production, income generation, promotion of improved complementary foods for young children, thus contributing to improving the livelihood of rural women. Concomitantly strengthening their capacity to settle disputes and mediate conflicts (through the project’s grievance redress mechanisms) will also help decrease escalation of conflicts. This approach will build on ongoing initiatives, which work with communities through CDPs in PNDP.
45. Component 3: Support to livestock value chains development (US$64.67 million: US$40 million IDA; US$5.91 million Beneficiaries; US$0.5 million Government; US$18.26 million PFIs). This component will support development of pig, poultry, beef, goat, sheep, milk and honey production and value chains in target areas for a broader engagement of local entrepreneurs in the sector. The component will establish “Productive Partnerships” (PPs) between livestock POs and buyers (Agri-Businesses: agro-industries, small and medium enterprises, etc.). These PPs will be supported through the provision of matching grants, contingent upon contractual arrangement between producers and buyers, and will facilitate access to rural financing for investing in various PO Sub-Projects (SPs). The selection criteria and mechanisms for POs, PPs/SPs will be detailed in the implementation manual. The component will include two subcomponents: (i) Establishment of a Productive Partnership Scheme; and (ii) Financing of SPs for POs. This component will build on experiences gained through the implementation of PIDMA (PP and business plan approach), and successful initiatives piloted by other development partners, particularly those related to training and development of advisory services. Direct and specific targets for the support of indigenous communities in the East will be provided as outlined in the IPPF prepared for the project.
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46. Sub-component 3.1: Establishment of Productive Partnership. This sub-component will promote and develop Productive Partnerships between POs and buyers of products (meat, milk and honey) of target species (cattle, goat, sheep, pig, poultry and bee) to match PO supply to buyers demand. Financial Institutions (FIs) will be included in the PPs as they are expected to co-finance the sub-projects to be developed by the POs. The Productive Partnerships will be based on the following principles: (a) agreement on product quality and characteristics such as size and species to be produced; (b) quantity to be produced and bought; (c) delivery modalities (how the product will be delivered, when, and in what condition); (d) payment modalities and price determination criteria; and (e) the buyer’s contribution, such as Technical Assistance (TA), specific inputs, and arrangements for input reimbursement. The sub-component will also support the establishment of sustainable business relations between targeted POs and FIs. To facilitate the involvement of FIs and the provision of adapted financial services, it will support capacity building of POs in the area of preparation of viable sub-projects (business plans) for financing including training in Business Edge for business and administrative skills, through IFC Business Edge partners, as developed within the ongoing Bank financed Agriculture Investment and Market development Project (PIDMA).
47. The overall aim of this component is thus to create an enabling environment for direct and sustainable commercial relations between producers and buyers of products of the targeted value chains, and FIs. Activities will include: (i) improving the understanding of the supply and demand of the products of the targeted value chains, by supporting market studies and surveys to characterize the supply and demand, by organizing communication and dissemination campaigns to inform stakeholders about the project, by supporting the restructuring and professionalization of demand and supply, and by creating an online-based market information system; (ii) connecting the demand and supply through the identification of market opportunities, the establishment of a dialog platform between the government and key stakeholders, and the establishment of PPs, which will be concretized by the development of the sub-projects (business plans); (iii) mobilizing financial institutions by negotiating a co-financing agreement for the SPs, and by providing a technical assistance on the design and development of financial services and products that are tailored to the diversity of financing needs of the eligible SPs.
48. Subcomponent 3.2: Financing of Sub-Projects for Producer Organizations. This sub-component will finance PO SPs (business plans) which have been developed by POs under the Productive Partnerships established under sub-component 3.1 to strengthen their capacity to increase the productivity and production of selected livestock products in the targeted value chains. Based on a PO’s business plan, investment will cover collective investments (feed production and processing, improved animal husbandry techniques, small-scale processing units/equipment, waste management systems to minimize greenhouse gas emissions, pollution and dissemination of pathogens, renewable energy (bio and solar energy) supply, technical assistance and training) through a Matching Grant aimed at increasing production and productivity, improving post-harvest (including processing) facilities, and quality. A conditionality mechanism will be built into the Matching Grant to ensure that the sub-projects do not generate negative externalities, and will be screened for potential adverse effects on the environment and public health.
49. Selected SPs will be financed through a combination of an IDA-financing through a matching grant mechanism, a contribution from the POs, and short to medium-term credit provided by participating FIs. The mobilization of the grant element (max 60 percent, with a ceiling of
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maximum $150,000 per SP) will be subject to the mobilization of the SP’s initiator own resources (min. 10 percent of the SP’s investment costs, in cash) and the credit extended by the FIs22.
50. Component 4: Project coordination, management, communication and monitoring (US$16.87 million: US$12 million IDA; US$4.87 million Government). This component will support project implementation activities, including operating costs of the NPCU with offices at national and regional levels. The NPCU will be under MINEPIA. The NPCU will be responsible for the day-to-day project management, implementation, fiduciary management, environmental and social safeguards management, and overall communication, monitoring and evaluation (M&E). The operational costs of the Project Steering Committee will be supported by the Project. The Project will finance the establishment and operations of an M&E unit. The project will finance the recruitment of an Environmental and Social Expert who will be an integral member of the NPCU, to ensure the coordination, monitoring, and implementation of the safeguard instruments developed under the project across all components of the project, assisted by the Regional Environmental and Social Experts in the targeted regions. The project will also finance trainings, workshops and seminars, study tours, and relevant studies identified during the project implementation. The main objectives of this Component are to: (a) ensure effective strategic and operational planning, monitoring and implementation of the Project and efficient use of various sources of funding, as well as coordination of the Project interventions of components 1, 2 and 3 implemented by participating stakeholders and partners; (b) evaluate the Project’s final results, outcomes and impacts on beneficiary smallholders/POs; and (c) communicate efficiently with various public and private entities on Project activities, outcomes, best practices and lessons learnt.
B. Project Financing
51. Total Project costs are estimated at US$134.15 million, to be financed through: (i) an IDA Credit of US$100 million equivalent; (ii) beneficiary contributions by livestock farmers, POs and other value chains actors, for a total estimated at US$6.01 million; (iii) participating financial institutions (PFIs) for about US$18.76 million (co-financing of SPs/BPs); (iv) communes for an estimated US$1.13 million (co-financing of management plans for pastoral resources); and (iv) a government contribution equivalent to US$8.25 million (corresponding mainly to the tax element).
22 Sub-projects will also be considered for certain POs that are able to mobilize 40 percent of the investment cost through their own contribution, without involvement of FIs.
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Project Cost and Financing (US$)
C. Lessons Learned and Reflected in the Project Design
52. The proposed project is well aligned with major livestock development initiatives currently underway in Cameroon. The most significant are the Agropole Program funded by the Government; the C2D Debt Reduction and Development Contract Programs (Contrat Désendettement Développement) funded by the French Development Agency (AFD) including the ‘Programme d’Amélioration de la Compétitivité des Exploitations Agricoles Familiales Agropastorales’ (ACEFA) that supports family farms and the ‘Projet d’Appui à la Sécurisation et à la Gestion Intégrée des Ressources Agropastorales’ (ASGIRAP) that promotes pastoral development in the North region; the IDA-financed Agricultural Competitiveness Project (PACA) which supports the development of pig and poultry value chains; the ‘Projet d’Appui à la Gestion des Espaces Pastoraux et Agricoles’ (PAGEPA) led by the Netherlands Development Organization (SNV) for pastoral development in the North; The ‘Programme d’Amélioration de la Productivité Agricole’ (PAPA), funded by the European Development Fund (EDF) in the Adamaoua, North and Extreme North regions; the Livestock and fishery development project (LIFIDEP) funded by the Islamic Development Bank (BID) in the North-West region. Apart from PACA that will be closed in December 2016, these initiatives are recent. The project also incorporates relevant findings from recent literature on development issues related to pastoralism23.
53. The project also draws from promising environmental and social programs developed by local communities with the support of Non-Governmental Organizations (NGOs), i.e.: (i) the African Centre for Renewable Energy & Sustainable Technology (ACREST) has developed with the support of Massachusetts Institute of Technology and the World Bank through the Development Marketplace, a promising production of coal briquettes with agricultural waste to replace wood charcoal; and (ii) the Cameroon Gender and Environment Watch (CGEW) in the North-West region has launched a promising initiative with OKU community to develop
23 Issue report by IIED, ‘Managing the boom and bust’,Ced Hesse, Simon Anderson, Lorenzo Cotula, Jamie Skinner and Camilla Toulmin See Hesse et al. (2013).
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reforestation (tree planting) and honey. SNV’s programs with communities also include livestock value chain development, water and sanitation, renewable energy (biogas) and REDD+. The International Center for Research in Agroforestry (ICRAF) has developed technologies in pastures and folder production that are suitable for improvement of livestock productivity and smallholder livelihoods in Africa. The International Livestock Research Institute (ILRI) has specialized skills in Africa animal health (diagnostic and production of vaccines) and feed production systems.
54. The proposed Livestock Development Project will coordinate with ongoing operations and incorporate the lessons learned within and outside the country in order to benefit from their experiences for the development of promising technologies, demand-driven approaches/mechanisms and support to communities and POs' priority investments, natural resources and pastoral management, bio-energy and REDD+. The key lessons learned from the various initiatives are summarized as follows: (i) the PACA (P112635) and the Vietnam Livestock Competitiveness and Food Safety project (P090723) have both demonstrated how matching grants can contribute to improving productivity of poultry and pigs farms, while giving incentives to producers and processors to invest in environmental impact mitigation and food safety technologies. But these two projects have also pointed out the bottlenecks of gathering producers into groups or cooperatives, including the lack of understanding of POs' added-value, and the difficulty of establishing reliable "Productive Alliances" through contractual agreements between stakeholders all along the value-chains; (ii) the World Bank's Livestock Working Group’s visit to Costa Rica in 2012 has shown how climate change-mitigation technologies (such as bio-digesters) can not only contribute to the climate change agenda, but also be profitable to livestock producers.
55. The project’s design well reflects the current international consensus on key orientations for developing the livestock sector :
(a) Mitigating harmful effects through sustainable management of the sector: decreasing negative externalities of the sector (greenhouse gas emissions, land degradation, biodiversity loss) through improvement of the livestock supply chain management and increasing positive externalities such as its contribution to economic growth, people livelihood, nutrition improvement, insurance for those living in harsh conditions. (b) Diverse production systems require targeted policy and investment approaches: in mobile system the goal should be to improve productivity per hectare, whereas in sedentary systems, the goal should be to improve productivity per animal and so each system needs tailored interventions.
56. Regarding animal health activities, Cameroon has engaged in the OIE PVS (Performance of veterinary service) pathway, a global program set up by the OIE for the sustainable improvement of National Veterinary Services (NVS) toward compliance with international standards of quality of veterinary services. PVS pathway reports provide objective and harmonized qualitative and quantitative elements helping to identify priorities and guide investments. The project design draws upon findings and recommendations of Cameroon’s PVS pathway reports. 57. Regarding the pastoral system, the project design benefited from lessons learned from three other pastoral support projects: (i) The regional pastoral livelihood resilience project (RPLRP), (ii) the Regional Sahel Pastoralism support project (PRAPS) and (iii) Cameroon’s agro-pastoral and land management project. LDP’s design is based on the main characteristics of pastoralist systems: mobility and management of natural resources. Mobility is key for pastoralists to use and protect
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rangelands effectively, adapt to climate change, evade conflicts and reach markets. Participative natural resources management is a powerful means of building consensus and reducing conflicts among land users. To optimize benefits that communities can draw from sustainable land management, improving management at herd scale and marketing is critical and improve the efficiency of the whole system.
58. Regarding value chain development, LDP was developed based on past and ongoing experience from IDA-Financed operations in agribusiness using both a review made by the Independent Evaluation Group (IEG) and lessons learned directly learned from projects. The IEG review of the Bank’s experience in the agriculture and agribusiness sectors identified critical activities for improving supply chain competitiveness: (i) the importance of supporting production, (ii) the need for strong marketing and market infrastructure, (iii) the need for access to land/land tenure, (iv) the importance of technical assistance, and the need to support production in quantity and quality while improving access to markets and credit to consolidate the investment provided. Experience with PPs in Latin America, designed to overcome producer market barriers has highlighted that PP should: (i) involve FIs such as commercial banks from the beginning of the project and work with buyers to sustain and scale up activities when project funding comes to an end, and (ii) emphasize the value chain in which the producer/buyer partnerships operate to remove constraints and help roll out the partnership model on a national scale.
59. Under the Bank-financed PIDMA, a review of prior Bank-financed projects in Cameroon, Brazil, Bolivia, Ghana, Honduras, Peru, Senegal, and Vietnam, highlighted a number of operational lessons :
(a) For agricultural business, effective links between POs (suppliers), ABs (Buyers/market demand), and participating FIs (credit) are necessary conditions for competitiveness while targeted TA is essential for successful PPs;
(b) Technical, financial, organizational, and management capacities of beneficiaries are critical to project performance. Selection criteria should include capacity and should be clearly defined and publicly disseminated prior to sub-project implementation;
(c) Support to PO-based market demand is a driving factor of success. PO’s SPs should be designed to meet the existing demand of buyers, not based on market perspectives or expectations of needs;
(d) SPs must be comprehensive enough to cover all critical activities and expenses. Weak formulation, cost estimates, and financial analysis of SPs will delay and hinder implementation;
(e) Standard guidelines for sub-projects must be prepared and disseminated at the beginning of the project. Guidelines will harmonize and facilitate the preparation and evaluation not only of SPs but also of procurement activities, while limiting the risks related to compliance with the project procedures;
(f) Results frameworks and M&E plans must be realistic given capacity constraints. Performance indicators should not be limited to quantitative outputs but should also include quality indicators related to ownership of the development process. Beneficiaries’ capacity should be strengthened to enable them to participate actively in data collection;
(g) Support for core decentralized public services is critical to the project at operational levels. Generally, private local service providers (LSPs) in Cameroon are lacking or are too weak to meet the support expected by POs and their members;
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(h) Strong government ownership is essential for the release of counterpart funding, the support of public services, and project performance.
60. These lessons learned have been incorporated into the design of the proposed project, especially: (i) sub-component 3.1 will focus on linking demand POs, ABs and FIs; (ii) strong focus on capacity building activities for beneficiaries across all components and clarification regarding the terms of the local counterpart requirement; (iii) PPs and resulting sub-projects (business plans) will systematically be based on a formalized demand; (iv) a first set of investment models for SPs have been prepared during project preparation; (v) component 1 will improve access to critical public and private services for livestock producers; and (vi) the LDP benefits from strong support and engagement of MINEPIA at all levels.
IV. IMPLEMENTATION
A. Institutional and Implementation Arrangements
61. Project Oversight. The Borrower is represented by the Ministry of Economy, Planning and Regional Development (MINEPAT). The National Debt Management Agency (“Caisse Autonome d’Amortissement”- CAA) will manage the Designated Account (DA) and will submit withdrawal applications to IDA on behalf of the Project. Overall responsibility for Project implementation, including management of environmental and social risks, will be delegated to the MINEPIA. Implementation will take place over six years in the five agro-ecological zones. The project duration is set at six years to allow a realistic timeframe for implementation, drawing from earlier experiences with similar projects. It is not only particularly important to allocate sufficient time for the development of sustained Productive Alliances under Component 3, but also for the activities envisaged under the other components to ensure achievement of the envisaged outcomes (i.e. improving service delivery, capacity building, development of productive agro-pastoral systems, etc.).
62. Implementation. The Project implementation mechanism will comprise: (i) a Project Steering Committee (PSC); (ii) an NPCU based in Yaoundé; (ii) Three RCUs covering the five agro-ecological zones; and (iii) Ten (10) Regional Pre-Selection Committees (RPSCs) responsible for detailed screening of eligible POs and business plans developed within the project zones covered by RCUs. The three RCUs will respectively cover the regions of: (i) Far North/North/Adamaoua; (ii) Center/South/East and (iii) Littoral/South-West/West/North-West. At the national level, an Environmental and Social Expert will be hired, complemented by three regional Environmental and Social Experts. In addition, RCUs will involve Regional Focal Points of the Ministries in charge of Environment (MINEPDED) and Social Affairs (MINAS) to facilitate the implementation of environmental and social activities of the Project. Fifty eight divisional focal points from decentralized MINEPIA services will work alongside technical service providers to provide outreach organizational development and technical advisory services to beneficiary communes, POs and livestock entrepreneurs. Specific implementation arrangements are developed for the various components/subcomponents under the overall oversight of the NPCU. The implementation mechanisms are described in Annex 3 and in more detail in the Project Implementation Manual (PIM).
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Figure 1 : LDP implementation chart
63. Roles and Responsibilities. The PSC will be established by the MINEPIA. It will ensure the general supervision of the project performance and strategic policy guidance and will mainly be responsible for: (a) approving the Project’s Annual Work Plan and Budget (AWPB) prepared by the NPCU with inputs from project beneficiaries, implementation stakeholders and partners; (b) overseeing overall performance of the Project and providing policy guidance; (c) suggesting necessary adjustments based on M&E results, with the technical support of a Technical Monitoring Committee (‘Groupe de Suivi Technique’) and (d) approving, as needed, the subsequent modification of the project implementation plan. The PSC will comprise representatives of, inter alia (as set forth in the PIM): (i) Ministries in charge of Livestock, Economy, Finance, Agriculture, Trade, Forest and Wildlife, Industry, Small and Medium Enterprises, Public works, Scientific Research, Environment, Women and Social Welfare and Professional Training; (ii) POs’ national platforms (CNOPCAM, PLANOPAC); and (iii) Representatives from the private sector (ANENCAM, APECAM, GICAM, CAPEF). The Technical Monitoring Committee (TMC) will be created by MINEPIA, comprising senior staff from (i) MINEPIA, institutions including DEPCS, DDPIA, DSV, DAG, DPAIE, LANAVET, MSEG; (ii) MINEPAT; Related producers
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umbrella organizations; (iv) Private sector including ONVC, IF, CAPEF, Communes’ representatives (ACVUC). On behalf of the PSC, the TMC will monitor Project activities through quarterly meetings with the NPCU and report to the PSC.
64. Both the NPCU and the RCUs will be staffed with highly qualified and experienced personnel who will be selected through competitive processes organized and managed by the MINEPIA, and agreeable to IDA. Each RCU will include an environmental and social specialist for the duration of project implementation to adequately screen and support the safeguard measures detailed in the ESMF, RPF, PMP, and IPPF. The respective roles and composition of the NPCU and the RCUs, as well as the Project organigram are detailed in Annex 3.
65. At the divisional level, the Project will build on an existing outreach advisory network composed of 58 divisional focal points from decentralized MINEPIA services, alongside technical service providers. Under the general supervision of RCUs, the Project will thus enhance their technical and organizational development capacities through on-the-job training. They will also receive appropriate tools and equipment that will allow them to provide technical and organizational advisory services to eligible communes, POs and livestock entrepreneurs. Costs related to operational missions (transportation, per diems) of focal points will be supported by the Project. Budgeting norms established by PIDMA would be used to help define the specific arrangements.
66. RPSCs established in each Region will undertake the screening of ideas of Sub-Projects/Business Plans (SPs/BPs) from potential communities and producers’ organizations. They will also handle screening of community investments. Each RPSC will be composed of seven (07) members including the Regional Delegate of MINEPIA (Chairman), two representatives from related producer umbrella organizations (voting members), the Regional Coordinator of PRODEL (Rapporteur, no voting rights), the Regional Lead of Animal Production of MINEPIA (voting member), a representative from the buyers (voting member), and one representative from the FIs (voting member).
67. The PIM will detail the organizational and technical procedures that will govern implementation, including financial management, procurement, environmental and social safeguards management, monitoring and evaluation (M&E), as well as the Grievance Redress Mechanisms (GRM). The GRM will allow the NPCU to address issues in a timely manner. Separate administrative and financial management manual and M&E manual have been prepared. Particularly, Component 3 of the PIM includes the following items: (i) Detailed fiduciary and technical procedures regarding co-financing of sub-projects/business plans (SPs/BPs), including control mechanisms and remediation steps for their implementation; (ii) Process for the establishment of Productive Partnerships (PP) and the elaboration, analysis, review and the implementation of SPs/BPs; (iii) Clear eligibility criteria for SPs/BPs and beneficiaries (including environmental and social safeguards considerations), processing cycle and timing, as well as complaint-handling mechanisms for SPs; (iv) Remedies for non-compliance and abuse of funds in SPs; (v) Training of POs and other stakeholders prior to SP implementation; and (vi) Templates for SP agreements, incorporating good governance and transparency clauses as well as complaint-handling mechanisms for SP candidates. Implementation of Sub-component 2.3 would be entrusted to a UN agency or NGO already operating on the ground with sufficient staffing capacity and proven delivery ability. The choice of implementing partner will be based on the ongoing
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experience of Bank projects already operating through these agencies in these regions (e.g. CAMSAN, Social Safety Nets, and PIDMA). The provision of Grants to the poorest or the most vulnerable communities affected by the crisis in the North and Far North regions of the country will be guided by detailed criteria laid out in the Project Implementation Manual.
B. Results Monitoring and Evaluation
68. The results framework in Annex 1 defines the performance indicators for each component and subcomponent. A robust M&E system will be implemented to provide high-quality information and allow the Bank to react immediately in the event of any issues that arise. The NPCU will be in charge of the overall M&E and for meeting the agreed reporting requirements. The M&E system will be designed to link technical and financial data on Project progress and impact. It will serve as a tool to assess Project results and as a day-to-day management tool, and will support Project supervision by ensuring that baseline and follow-up surveys and data collection for the key performance indicators are available and regularly updated. M&E reports will be produced quarterly at the regional level and every six months at the national level. Semi-annual and annual reports will be circulated to sectoral ministries and to concerned development partners. Before Project-supported activities get underway, baseline data needed for impact evaluation purposes will be collected in project and non-project areas by a third party specialized in data collection and processing. A mid-term evaluation will be conducted halfway through the project life-cycle to assess progress made across the various components, and an impact evaluation no later than six months before Project completion. The project will support the integration of nutrition considerations in impact evaluation studies as well as the collection and dissemination of information on local feeding practices and their relation to local food systems, as well as good practices to improve nutrition through agricultural interventions. The project will measure the Dietary Diversity Score (DDS) at mid-term and at the end of the Project implementation period, to monitor the nutritional impact of the project’s activities. The project will also integrate gender considerations in impact evaluation studies, and will measure the Women’s empowerment in agriculture index (WEAI) at mid-term and at the end of the Project implementation period.
69. A Project Management Information System (MIS) will be put in place, hosted and maintained by the NPCU. The NPCU’s M&E specialist will be responsible for providing training to the Regional Coordinators of the RCUs, and M&E staff of other relevant government units to ensure that required information is made available and prescribed in a uniform reporting process.
70. Semi-annual joint supervision missions with representatives from the World Bank, and the GOC will assess the status of key Project outcomes and ensure compliance with legal covenants. A Mid-Term Review will be conducted no later than three years after the first disbursement. A final independent evaluation will be conducted in the last semester of Project implementation to assess overall achievement of expected Project results.
71. The M&E manual provides details with regard to the definition of the results framework, the methodology and the instruments to be used for data collection, the institutional arrangements for M&E functions (identification of actors and definition of their respective responsibilities), the GRM, and the mechanism to be used for disseminating information. It will inform a communications strategy that will be developed and implemented by the NPCU.
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C. Sustainability 72. Sustainability and exit strategies have been integrated into all components of the proposed project. The project will promote sustainable livestock services access and delivery to benefit communities and private investors. The project will improve pastoral productivity, access to market and resilience of pastoral communities based on their priority investments identified in CDPs prepared within PNDP-II and III. The project will also restore productive assets for the poorest and most vulnerable livestock household farms by provision of productive social safety nets focusing on value chains that are most relevant for poor farmers. Under the value chain and other business activities, the project will invest in strengthening public institutions, livestock rearing households and their organizations, and livestock processors and operators, so that they can continue their economic ventures beyond the lifespan of the project. In addition, any productive asset, equipment, or infrastructure funded through the sub-projects under component 3 of the project will be accompanied by well-conceived and vetted business plans clearly indicating the arrangements and division of responsibilities regarding operation, management and maintenance.
73. The project will sustain investments by promoting: (i) climate smart technologies and practices including sustainable land/landscape management, waste management systems to minimize greenhouse gas emissions, pollution and dissemination of pathogens, and (ii) renewable energy supply (bio and solar energy) systems.
74. The capacity that local NGOs, service providers, and community-based dialogue platforms develop through all components of the proposed project should enable communities and POs to continue the negotiation and mediation processes between various actors in the value chains after the project ends. This is particularly important with regard to the management of pasture land, but equally important to sustain the productive partnerships between ABs, POs, and PFIs. Component 1 also intends to support service providers, public and private alike, to ensure that access and quality of service delivery is sustained beyond the project implementation period.
75. Public institutions, in particular the various divisions under MINEPIA, will be strengthened, and more efficient linkages will be developed under Component 1 and Component 4 to ensure that the performance of the livestock sector is closely monitored through an effective use of ICT tools (MIS system), by well qualified staff trained through degree and non-degree training activities financed by the project. These activities will help to ensure that the results of the project continue to be beneficial to the country at large.
V. KEY RISKS AND MITIGATION MEASURES
Overall Risk Rating and Explanation of Key Risks
76. The overall risk rating of the project is Substantial as the rankings in the Table below indicate (risks are rated before mitigation).
Risk Category Rating 1. Political and Governance Substantial 2. Macroeconomic Moderate 3. Sector Strategies and Policies Low 4. Technical Design of Project or Program Moderate 5. Institutional Capacity for Implementation and Sustainability Substantial 6. Fiduciary Substantial 7. Environment and Social Substantial 8. Stakeholders Substantial 9. Other: Security-related risk Substantial OVERALL Substantial
The most critical risks and proposed mitigating measures associated with the project are summarized as follows:
77. Political and Governance risks are Substantial. This risk rating is in large part a result of poor ranking in the business-related “rule of law” areas, as evidenced by the country’s ranking in the 2015 Doing Business Report (172nd out of 189 countries), and relatively weak governance structures which hamper efficient livestock services delivery and the development of the targeted livestock value chains. This may lower the success rate of the communes’ management plans for pastoral resources under component 2 and of the productive partnerships to be established under component 3. In addition, weak governance of POs themselves may adversely affect the implementation of key activities, as this could demotivate PO members, ABs, and FIs alike. Various governance risks may occur at various stages of the project cycle (see Annex 6: Proposed Grievance Redress Mechanism, GRM), such as conflict between key stakeholders in the selection process of Sub-Projects, or internal conflict between PO leaders and members. To mitigate these risks, the Project will strengthen capacities among the various stakeholders involved in the livestock sector, including public servants, beneficiaries, and service providers (governmental and non-governmental).
78. Perception of corruption is still high, even if Cameroon has made great strides towards improving budget transparency and the shift to program-budgeting in 2013 is incrementally bringing result-based management in public finance management. The project will build on these promising trends initiated by the Government by engaging in transparent dialogue with stakeholders regarding project implementation and the allocations of project resources. In addition, the implementation of a functioning GRM will help create and reinforce trust between different stakeholders involved in the project (project coordination units, beneficiaries, and intermediate actors), thus promoting transparency, accountability, and facilitate the involvement of all the different stakeholders (and specially the beneficiaries) in the implementation of the project. The project activities further mitigate against governance risks by improving public sector efficiencies through targeted capacity building activities to improve livestock services delivery. Because so many people rely on the livestock sector for their livelihoods, the project can generate significant benefits not only through its immediate contribution to socio-economic development but also
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through its impact on the overall governance of the livestock sector, conflict dynamics, and social cohesion in the country, particularly with regards to the management of pastoral resources
79. Institutional capacity for implementation and sustainability risks are Substantial. Targeting several value chains in the same project is a challenge for the implementation as its different value chain are spread over different regions and requires different technical expertise. To mitigate these risks, the project will provide strong and tailored (adapted to each value chain needs) technical support to producers during both the preparation and implementation of sub-projects. Existing successful mechanisms from other initiatives in the target regions, will guide the selection and training of local service providers. In addition, the project will strengthen implementation capacity in the ministry through degree and non-degree related training to carry out its core responsibilities including, inter alia, sector analysis, policy preparation and implementation, sector monitoring and evaluation.
80. Fiduciary Risk is Substantial. The fiduciary residual risk for the Project is deemed Substantial, particularly with regards to the complexity of the project that will include a decentralized level of implementation and sub-projects management at regional level. To mitigate these risks, many stakeholders will be involved in vetting the sub-projects through transparent and highly participatory mechanisms, in addition to coordination units at the national and regional levels, capacitated by associated fiduciary teams. The proposed fiduciary arrangements of the project are considered satisfactory to mitigate the associated risks, and are able to provide, with reasonable assurance, accurate and timely information on the status of the project as required by IDA. The implementing entity will ensure that all the applicable Bank's Fiduciary Guidelines, including, inter alia, the Bank’s “Guidelines on Preventing and Combating Fraud and Corruption in Projects Finances by IBRD Loans and IDA Credits and Grants”, dated October 15, 2016, and revised in January 2011, are followed under the project, backstopped by regular implementation support missions fielded by the Bank.
81. Environmental and Social risk is Substantial. This rating is due to the fact that many of the activities that will be financed by this project require changes in behaviors and currently held practices regarding animal health, pastoral resources management, and livestock productivity. In addition, indigenous Baka, Bagyeli and Badzang peoples are living in three of the regions in which the project will be implemented: East, Central and South. To mitigate against these risks, the necessary safeguard instruments have been developed, and will be closely followed to ensure their implementation. Furthermore, the costs of the implementation of the environmental and social risk mitigation measures are integrated in the project budget, and form a key requirement for Sub-Project selection under the matching grant schemes.
82. Stakeholders risk is Substantial. The capacity for collective action of pastorals communities is low compared to other producers. Transhumant pastoral communities have no institutions in place to deliberate, build consensus and speak with one voice. This low capacity for collective action is an issue for the implementation of activities targeting their community. To mitigate these risks, the Project will stimulate collective action locally through community mobilization, the development of commune-level MPPR, the establishment of dialogue platforms, and the introduction of a Conflict Resolution Mechanism.
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83. The capacity of Cooperatives/GIC is, in general, low in terms of genuine and real collective action at their level. To mitigate these risks, the project will support (i) specific TA through LSP to PO on Cooperatives Management, (ii) Grievance Redress Mechanism to identify potential internal cooperatives issue before it becomes a cause of failure for the PO, and (iii) training & TA to MINEPIA deconcentrated services on Cooperatives (basic management principles).
84. From a demand-side point of view (buyers/processors), the market is highly concentrated. Capital-intensive activities tend to be very concentrated in Cameroon given the challenge of Access to Finance and Doing Business Environment. As a consequence, there is a stakeholders risks related to Productive Partnership from the demand-side (buyers/processors). Mitigation: the project will support (i) national inclusive policy dialogue to trigger peer pressure and reputational pressure and (ii) study on potential demand to ensure as many demand-side actors as possible are included.
85. Security-related risks are Substantial. Violence is a risk for project implementation, especially in the Far North region. Boko Haram attacks in Cameroon have increased significantly since 2013 and the GOC officially engaged military actions against Boko Haram starting in May 2014 in coordination with the armed forces of Chad, Niger and Nigeria. The violence continued to escalate during 2015, with more than 1,200 fatalities in 2014-2015 and over 63,000 registered refugees and 92,000 IDP in Far North region. It is estimated that about 90 percent of the refugees in the Eastern and Adamawa provinces belong to the Mbororo ethnic group. These refugees are fleeing CAR, but increasingly also Nigeria, where their cattle is an easy target for Boko Haram raids (SCD, 2016).
86. The project will contribute to rehabilitation and rebuilding efforts in the Far North by investing in the targeted value chains and fostering economic activity but the movements and motivations of Boko Haram are currently very unpredictable. Given the circumstances, the project will invest primarily in the areas with least risks and will adopt some measures to mitigate the implementation risks for the beneficiaries and the implementing partners. This will be done by, inter alia: (i) working closely with local formal and traditional authorities and local community groups, (ii) adopting third party arrangements to ensure adequate supervision, and (iii) by defining flexible implementation procedures adapted to this dynamic environment.
VI. APPRAISAL SUMMARY
A. Economic and Financial Analysis
87. Financial Analysis. Financial analyses were carried out to assess: (i) whether the targeted producers and value chain actors will get sufficient cash income to justify their adherence to and participation in the Project and thus contribute to raising the capital, creditworthiness, and business record of the POs/SMEs to which they belong; (ii) whether the proposed financial arrangements for supporting SPs/BPs (mix of promoters’ contribution, matching grant, and short- and medium-term credit and/or leasing arrangement) would be worth the risk to PFIs and SPs’ promoters; and (iii) the attractiveness of the proposed typical business plans (BPs) by targeted value chain (VC) for POs and other potential targeted VC actors. Several typical production, marketing, input supply or production and output trade and processing activity models (SPs) were elaborated taking into
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consideration reasonable technical assumptions and verified input and output prices and investment/running cost assumptions. Models integrate multiannual cash flow projections (before and after financing through grants and short- and medium-term credit) that would be used to negotiate PFIs’ co-financing as well as check return to investors. Several iterations were made with the National Project Preparation Team (NPPT) to test various technology and investment options to reach typical models that show good profitability prospects which should attract small producers, VC actors and PFIs. Financial internal rates of return and incremental incomes appear attractive in all modeled situations.
88. The Project would generate direct and indirect economic benefits such as: (i) increased production of targeted livestock products; (ii) better income for participating small livestock keepers/pastoralists/producers, and therefore improved food security at the household level and a reduction in vulnerability to external shocks, notably climate change and rising food prices; (iii) reduced transaction costs and post-harvest losses; (iv) increased value added retained at the producer (and PO) level within the targeted value chains; (v) enhanced market/business opportunities and economies of scale benefiting all actors of the targeted supply chains; (vi) enhanced bargaining power, understanding of markets, and management capacity among smallholders/POs; (vii) incremental on- and off-farm employment; (viii) foreign exchange savings through reduced importation (mainly for eggs) and increased exports; and (ix) improved social stability in the project’s intervention areas. The Project would have a positive impact on participating women, youth, and households headed by women. A cost-benefit analysis was conducted for a 25-year period, transforming financial prices, costs, and benefit streams into economic values, applying conversion factors for each category of costs, eliminating taxes and transfers (credit), and taking into account incremental costs after the Project implementation period (infrastructure maintenance). Economic benefits considered in the analysis are those derived from: (i) improved animal health services and particularly improved vaccination coverage against the CBPP and PSR that would translate into an increased size and value of the national bovine and small ruminant herds; (ii) improved pasture production and value and reduced overgrazing that would transform into increased forage and live animal production and value; (iii) economic benefit streams from the implementation of funded SPs/BPs.
89. Considering all Project costs (including capacity development and Project coordination and management), the Project would yield an Economic Internal Rate of Return (EIRR) of 17.9 percent and a Net Present Value (NPV) of US$122.9 million (at a 5 percent discount rate) although assuming a failure rate of 33 percent for financed SPs/BPs24. The Project is therefore highly profitable from an economic standpoint. The sensitivity analysis indicates a very strong resilience to increases in costs and reductions in benefits. The EIRR would yield 16 percent and 15 percent, respectively, if benefits were reduced by 30 percent or lagged by two years.
B. Technical
90. In general, high disease levels and regional and seasonal imbalances in feed supply are the two most important constraints affecting Cameroon's livestock production, which in turn affect productivity, and hamper the development of the affiliated value chains. Their specific nature and
24 It was assumed that one third of the funded SPs/BPs would fail e.g. would generate additional benefits that would just offset incremental investment and operational costs.
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relative importance differ according to ecological zones. As a general rule, animal health constraints are more important in humid areas, whereas feed constraints predominate in drier areas. While this would require different approaches for each zone to overcome technical constraints, the accompanying organizational measures would be similar. Appropriate technical solutions exist to reduce losses due to animal health issues; the bottleneck is found in the delivery systems, which the project is tackling. As for feed, relatively simple techniques to increase feed resources exist for all zones for dissemination. Their success will depend on the identification of appropriate pasture management systems. The project would introduce adapted pasture management models, with emphasis on group management, using technologies and improved pasture seed and management techniques developed by national and international research efforts, particularly by the CGIAR institutes who would be strategic partners in the implementation of this project.
91. In addition, the technical feasibility of the program is based on the following elements:
(i) The selection of activities and approaches that have been piloted and used by projects financed by the World Bank (e.g. PACA, which supports the development of pig and poultry value chains, the GEF financed sustainable agro-pastoral and land management promotion project under the community development program support, PNDP), and other partners in the region, e.g.; the ‘Programme d’Amélioration de la Compétitivité des Exploitations Agricoles Familiales Agropastorales’ (ACEFA) that supports family farms and the ‘Projet d’Appui à la Sécurisation et à la Gestion Intégrée des Ressources Agropastorales’ (ASGIRAP) that promotes pastoral development in the North region; the ‘Projet d’Appui à la Gestion des Espaces Pastoraux et Agricoles’ (PAGEPA) led by the Netherlands Development Organization (SNV) for pastoral development in the North; the ‘Programme d’Amélioration de la Productivité Agricole’ (PAPA), funded by the European Development Fund (EDF) in the Adamaoua, North and Extreme North regions.
(ii) The use of existing CDPs under PNDP-III to finance priority investments for communities and of SLM technologies that had been developed within the Global Environment Facility-financed Sustainable Agro-Pastoral and Land Management to address land and pasture degradations.
(iii)The use of the productive partnership and value chain development approach that have been developed within the Bank-financed PIDMA.
(iv) The recommendations of the SCD 2015 for a pro-poor growth strategy and selectivity of value chains that are most relevant for poor farmers for a greater likelihood of successful poverty reduction.
(v) The findings of the livestock value chain analysis carried out by the Government in 2015 in terms of state of the livestock sub-sectors, functioning and competitiveness of value chains, gender dimension (especially women’s role in value chains), etc.
(vi) The involvement of international organizations and other service providers to implement key activities. These organizations include, inter alia, CGIAR centers (ILRI and ICRAF, the World Agro-Forestry Center). In addition, national and international NGOs (e.g. SNV) could be contracted; these organizations would link up with local NGOs, organizations of beneficiaries, and public services. This will be of particular concern for activities in the Extreme North and North.
(vii) Nutrition activities will be implemented based on lessons learnt on how to maximize the nutritional impact of agriculture programs. For example, maximizing the nutritional impact of agriculture interventions entails: (i) incorporating explicit nutrition objectives in program
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design, (ii) supporting women through equitable access to productive resources, income opportunities, extension services and information, credit, and labor- and time-saving technologies, (iii) improving processing, storage, and preservation, and (iv) expanding markets and market access for vulnerable groups, particularly for marketing nutritious foods
C. Greenhouse Gas Accounting 92. Climate change adaptation and enhancement of resilience in the agricultural sector remain priorities for Cameroon. At the same time, the importance of achieving mitigation co-benefits is acknowledged in Cameroon's Intended Nationally Determined Contribution to the United Nations Framework Convention on Climate Change (UNFCCC), which was submitted by Cameroon in September 2015. The World Bank has adopted a corporate mandate to quantify the greenhouse gas (GHG) mitigation potential of its projects, as an important step in managing and ultimately reducing emissions. For that purpose it uses the EX-ACT tool. For the proposed project, the GHG analysis considered activities along the various livestock value chains targeted, as well as the proposed improved pasture management activities. The analysis shows that the project constitutes a net carbon sink, compared to the without-project scenario. Over a period of 20 years, the proposed project has the potential to avoid emissions and sequester -242,767,090 tCO2-eq (Annex 6).
D. Financial Management 93. The proposed FM arrangement under the project satisfies the Bank’s minimum requirements under OP/BP10.00, and therefore is adequate to provide, with reasonable assurance, accurate and timely information on the status of the project as required by IDA. With regards to the complexity of the project that will include a decentralized level of implementation and sub-grants management at regional level, many stakeholders in addition to coordination units and associated FM team that are yet to be set up, the FM residual risk is assessed as substantial.
94. In line with the use of the country national system, the project FM arrangement will rely on the existing country FM arrangements put in place to manage donor-funded projects. These arrangements are centered on two main institutions. First, the CAA equipped with dedicated tools developed by the Bank Institutional Development Fund (IDF). These tools include (i) a standardized FM manual, (ii) and integrated financial management system for donors funded project (namely SIGED25) which includes modules on (a) project cycle, (b) budgeting and accounting, (c) automated payments and (d) electronic archive. Second, the Ministry of Public Procurement in charge of ex ante control of all suppliers’ invoices associated with a contract before any payment by CAA.
95. In light of the above, (i) the standardized Financial Management Manual of Procedures developed by CAA with Bank IDF support will be customized to reflect the project specificities including a tailored description of internal controls, budget process, assets safeguards mechanisms along with roles and responsibilities of all stakeholders (ii) a multi-sites version of the budget and accounting modules of the SIGED will be deployed at the PIU to handle accounting and reporting needs under the project, and (iii) CAA and the Ministry of Public Procurement internal control
25 Système Intégré de Gestion des Décaissements
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mechanisms will be applied. An external auditor will be recruited using the country arrangements (by which the Ministry of Public Procurement leads the process with involvement of the line ministry) to conduct annual financial audit of the financial statements of the project along with the review of the internal control system. The option to involve the Chamber of Account (Supreme Audit Institution) in the auditor recruitment process will be considered.
96. In order to handle the day to day FM activities of the project, the FM team of the Coordination unit will be built with the recruitment of a Financial Management officer and an accountant at the NPCU.
97. Moreover, the project aims at contributing to finance local development plan and matching grants benefitting professional organizations at regional and community levels. It will thus involve transfer of cash to subprojects holders with weak financial management capacity. Therefore in order to reinforce the internal control environment, to ensure the funds transferred are used for their intended purposes, the MINEPIA will (i) recruit an accountant in each of the three Regional Coordination Units to ensure accounting and reporting needs are fulfilled at regional levels in addition to continuous capacity building and assistance to subprojects when and as needed (ii) recruit an internal auditor to conduct ex-post review of the project transactions at national, regional, preselection committees and subproject levels and (iii) develop subproject and matching grants procedures manuals that will include simplified management and accounting tools for the proper management of the funds they will receive in addition to subprojects selection procedures detailing the involved parties and their roles in the process, financing arrangements, control mechanism and remediation steps.
98. The context of the project that will involve many stakeholders and implementers (including community SP holders and OPs with weak FM capacity) could lead to breaches in the internal control system leading to abuses including fraud and corruption cases. Therefore, the project will include some measures aimed at mitigating said risks : (i) the set up and operationalization of a complaint handling mechanism to proper manage governance cases in the selection and implementation of SPs, (ii) Training provision for SPs holders, POs prior to SP implementation under component 2 and 3. 99. The detailed FM assessment is included in Annex 3.
E. Procurement
100. The procurement risk assessment focused on the procurement capacity assessment of the NPCU, the three RCUs, and the Ministry of Public Procurement (MINMAP), and on POs’ implementation arrangements for the sub-projects. The capacity assessment found that: (i) there is no procurement unit comprising at least an acceptable procurement specialist, (ii) there is no specific implementation manual for the project, including to producers for the management of SPs; (iii) the NPCU, the RCUs, POs, and MINMAP have to develop a comprehensive record keeping system. 101. Procurement for the LDP will be carried out in accordance with the World Bank “Guidelines: Procurement of Goods, Works, and Non-Consulting Services under International Bank for Reconstruction and Development (IBRD) Loans and IDA Credits & Grants by World
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Bank Borrowers” dated January, 2011, revised July 2014; and “Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credit & Grants by World Bank Borrowers”, dated January, 2011, revised July 2014; and the provisions stipulated in the Legal Agreement. Further, the “Guidelines on Preventing and Combating Fraud and Corruption in Projects Finances by IBRD Loans and IDA Credits and Grants”, dated October 15, 2016, and revised in January 2011, will apply. 102. The overall procurement risk for the project at the time of assessment is rated as High, mainly due to the country environment risk of corruption in procurement, especially in public contracts, the limited experience of MINMAP with Bank-financed projects, the potential conflict of interest for MINMAP in relation to the management of complaints linked to contracts directly handled by MINMAP, and shortcomings in procurement operations and practices. 103. Mitigation action plans have been developed for both entities (See details in annex 3).The satisfactory implementation of the above action plans will reasonably bring this overall risk to Substantial.
104. The procurement plan for the first 18 months of the Project was reviewed during the appraisal mission, and discussed during negotiations. During implementation, the procurement plan will be updated in agreement with the Project team at least annually or as required to reflect the actual Project implementation needs and improvements in institutional capacity. It will be available in the Project’s database and a summary will be disclosed on the Bank’s external website once the Project is approved.
F. Social (including Safeguards)
105. The project would support improvements in livestock health and productivity and is therefore expected to have a positive impact on the lives and livelihoods of the populations living in the target areas. During project preparation, a social assessment was conducted and the results were used to inform the project design and the preparation of the RPF and IPPF. The results of the social and environmental audit of the first phase of PACA that was completed in 2015 have also been used to inform the design of this project and the preparation of the safeguard instruments. 106. OP 4.10 has been triggered as there are indigenous Baka, Bagyeli and Badzang peoples living in three of the regions in which the project will be implemented: East, Central and South. These populations are largely forest dependent peoples but they have started to participate in small scale animal husbandry as a way to improve their food security and to earn cash that is necessary in order to pay school fees etc. A process of free, prior and informed consultation was undertaken during preparation to explain the project in general and to identify which activities might be of interest and benefit for these populations. The IPPF prepared by the borrower explains the process in more detail and outlines the key activities and targets for these populations. Activities include: (1) support for the development of artisanal beekeeping; (2) small scale poultry operations (traditional incubator to facilitate hatching); and (3) development of small scale goat breeding. The IPPF was disclosed prior to appraisal on August 25, 2016, per the requirements of the policy. 107. There will be no involuntary land acquisition or physical displacement and any subproject proposals that require land acquisition or physical displacement will not be eligible for financing.
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However, OP 4.12 has been triggered in order to provide guidance regarding how to manage any potential negative impacts on livelihoods, customary use of rangeland and access to natural resources in a protected area. A RPF has been prepared to provide guidance regarding how to screen for any negative impacts related to the implementation of the community management plans that would be financed under Component 2. A Process Framework will also be prepared to manage potential impacts of livestock corridors that include portions of private protected areas (ZICs). These impacts will be temporary in nature and are not likely to restrict access to resources in these areas but the Process Framework will outline the exact nature of the livestock corridors and provide guidance regarding how to avoid conflicts with ZIC owners.
108. Many of the activities that would be financed by this project require changes in behaviors and currently held beliefs regarding animal health and productivity. As a result, a social communication strategy would also be financed for each component in order to provide information and training to producers and other actors in the livestock industry. The materials and format will be adapted to ensure that they are culturally relevant and appropriate for the beneficiaries and promote the inclusion of women, youth and vulnerable groups.
G. Environment (including Safeguards) 109. The project is rated Category B, partial assessment. Although the potential adverse environmental and social impacts of the activities financed under the proposed project mainly under components 2 and 3, are expected to be site-specific; few of them are expected to be irreversible; and in most cases mitigation measures can be designed more readily. The project activities will cover several agro ecological areas with regard of its national wide coverage. Appropriate mitigation including best environmental and social management practices will be required. The following environmental safeguard policies are triggered: Environmental Assessment (OP/BP 4.01); Pest Management (OP 4.09); Natural habitats (OP/BP 4.04); Physical Cultural Resources (OP/BP 4.11); and Forests (OP/BP 4.36). 110. Safeguard instruments. An Environmental and Social Management Framework (ESMF) was prepared and describes the procedures and processes that would be followed in preparing and disclosing site specific safeguard instruments where required as soon as the exact locations and scope of sub-project activities are known. The ESMF covers the issue of potential handling and disposal of veterinary medical wastes that may be generated as a result of the project. In addition, the project will prepare an emergency response to outbreaks of animal diseases as is currently the case in the country with Avian Flu in Yaoundé and Pig swine in Far North. The ESMF considers the measures that will be taken in the event that large numbers of animals need to be destroyed as part of the emergency response program. All three frameworks were disclosed in the country (http://www.minepia.cm/fr/ministere/actualite/294-prodel.html) on August 24, 2016, and through the InfoShop on August 25, 2016. 111. Implementation cost of safeguard instruments. The frameworks instruments that were prepared as indicated above assess the specific safeguard implementation instrument cost (ESIAs/ESMPs, RAPs, IPP). The costs of the implementation of the environmental mitigation measures under the ESMPs will be almost entirely included in the Project Budget and will be subject to annual planning and implanting exercise. The Social and Environmental screening of
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the Annual Work Plan will be a key action that will help in the decision making on the readiness and feasibility of the activities proposed within the year. 112. Institutional Arrangement for safeguards management: Given that MINEPIA , which will serve as the implementing agency with an NPCU, is not very familiar with world Bank safeguards policies, and therefore has very limited capacity on safeguards management, the NPCU will hire an Environmental and Social Expert based at the Central level, and Regional Environmental and Social Experts based in the targeted regions. These Environmental and Social Experts will be working closely with the relevant ministries (Ministry of Environment, Protection of Nature and Sustainable Development, Ministry of State property and Land, Ministry of social Affairs) and Civil Society Organizations involved in the livestock sector.
113. Consultation with stakeholders: During the preparation of frameworks instruments, an inclusive consultation took place in several agro-ecological regions targeted by the project. The ESMF provides consultation guidelines for each site specific investment. The NPCU will prepare and implement a consultation plan for the whole project. 114. Need to better align investments feasibility studies and Environmental and Social Impact Assessment (ESIA) consultants. The consultants that will carry out feasibility studies under the project will work closely with the consultants working on the ESIA. The choice of sub-project sites will take into account a number of constraints and general considerations from the ESMF and RPF, with potential repercussions on the technical and environmental feasibility of each sub- project and its implementation cost. The consultant completing the feasibility studies will propose several sites options on the basis of defined criteria. These preliminary sites will be submitted to the client and the consultant in charge of ESIA. The ESIA studies will analyze these proposed sites and rank the best option that will be recommended. The Consultant in charge of feasibility studies will consider the ESIA comments and the proposals in order to revise the design accordingly.
H. World Bank Grievance Redress
115. Communities and individuals who believe that they are adversely affected by a World Bank (WB) supported project may submit complaints to existing project-level grievance redress mechanisms or the WB’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project affected communities and individuals may submit their complaint to the WB’s independent Inspection Panel which determines whether harm occurred, or could occur, as a result of WB non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the World Bank's attention, and Bank Management has been given an opportunity to respond. For information on how to submit complaints to the World Bank’s corporate Grievance Redress Service (GRS), please visit http://www.worldbank.org/GRS. For information on how to submit complaints to the World Bank Inspection Panel, please visit www.inspectionpanel.org.
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Annex 1: Results Framework and Monitoring
.
Country: Cameroon
Project Name: Livestock Development Project (P154908).
Results Framework.
Project Development Objectives .
PDO Statement
The Project Development Objective (PDO) is to improve productivity of selected livestock production systems and the commercialization of their products for the targeted beneficiaries, and provide immediate and effective response in the event of an eligible livestock crisis or emergency.
These results are at Project Level .
Project Development Objective Indicators
Cumulative Target Values
Indicator Name Baseline YR1 YR2 YR3 YR4 YR5 YR6 End Target
Productivity of targeted species by direct beneficiaries (cattle, sheep and goat, poultry, pig, and bees)
This indicator is a proxy for the productivity of ruminants (sheep, goat, and cattle). Mortality rate = Number of ruminants that died over one year/ Number of ruminants present over one year.
This indicator measures the productivity of broilers. Kg of live weight per m2 per year = Kg of weight of broilers taken immediately before slaughter over one year / area (in m2).
Breeding pig (Number of weanlings per sow per year)
This indicator measures the productivity of sows. Number of weanlings per sow per year = Number of piglets weaned over one year /number of sows present over one year.
Dairy cattle (Liters of milk per cow per lactation period)
This indicator measures the productivity of dairy cows. Liters of milk/cow/lactation period = liters of milk produced by productive cows over one lactation period/number of productive cows present over one lactation period. A productive cow is a milk producing cow
over one year/number of beehives present over one year.
Technical & economic monitoring
Incremental sales in targeted value chains (aggregated over all the targeted value chains)
This indicator measures the average increase in the value of sales in targeted value chains. For each targeted value chain, the increase in the value of sales is calculated as the ratio of the value of incremental sales during the reporting year (the total value of sales by direct beneficiaries during the reporting year minus the total value of sales in the baseline year) and the value of sales at baseline.
Farmers reached with agricultural assets or services (of which female and youth)
This indicator measures the number of livestock households and small livestock operators and enterprises in target areas who were provided with agricultural assets or services by the project. The baseline value for this indicator will be zero.
PRODEL with national and regional project management units
Farmers adopting improved agricultural technology (of which female and youth)
This indicator measures the number of livestock households and small livestock operators in target areas ho have adopted an improved agricultural technology promoted by the project and described in the PIM. The baseline value for this indicator will be zero.
Female--adoption of improved agriculture technology
This indicator measures the proportion of female beneficiaries in target areas who have adopted an improved agricultural technology promoted by the project and
Annual Progress report, annual PRODEL report Household Surveys, Direct observation,
PRODEL as well as M&E function of MINEPIA
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described in the PIM. The baseline value for this indicator will be zero.
Semi-structured interviews
Youth-- adoption of improved agriculture technology
This indicator measures the proportion of youth beneficiaries in target areas who have adopted an improved agricultural technology promoted by the project and described in the PIM. The baseline value for this indicator will be zero.
Indicator Name Description (indicator definition etc.) Frequency Data Source / MethodologyResponsibility for Data Collection
Post-vaccinal seroprevalence of small ruminant plague [PPR]
This indicator measures the level of PPR resistance (immunity) among sheep and goats in the project area. In case of poor quality vaccines, resistance will not be increased despite an increased coverage.
Annual Sample-based, based on blood samples living animals and reports from pastoralists and agro-pastoralists (active and passive surveillance )
PRODEL as well as M&E function of MINEPIA
Producers who received improved genetic material
This indicator measures the number of producers who received at least one of the improved genetic material distributed by the project during the reporting period. For cattle farmers, this indicator measures the number of cattle farmers who received improved calves and/or improved plant seeds (Bracharia, Stylosanthes, Desmodium) for forage.
Cattle farmers This indicator measures the number of producers who received at least one of the improved genetic material distributed by the project during the reporting period. For cattle farmers, this indicator measures the number of cattle farmers who received improved calves and/or improved plant seeds (Bracharia, Stylosanthes, Desmodium) for forage.
Small ruminant farmers This indicator measures the number of small ruminant farmers who received at least one of the improved genetic material distributed by the project during the reporting period.
Pig farmers This indicator measures the number of pig farmers who received at least one of the improved genetic material distributed by the project during the reporting period.
Time taken to disburse funds requested by government for an eligible livestock crisis
This indicator measures the accessibility to and efficiency of the mechanism put in place by the project to make funds available to the government in a timely manner in case of an eligible crisis.
Annual in case of a crisis
Progress report, annual PRODEL report,
PRODEL as well as M&E function of MINEPIA
Client days of training provided (number)
This indicator measures the number of client days of training provided i.e. the number of clients who completed training multiplied by the duration of training expressed in days.
Annual Progress report, annual PRODEL report,
PRODEL as well as M&E function of MINEPIA
Client days of training provided - Female (number)
This indicator measures the number of client days of training provided to females i.e. the number of female clients who completed training multiplied by the duration of training expressed in days.
Annual Progress report, annual PRODEL report,
PRODEL as well as M&E function of MINEPIA
Client days of training provided - youth
This indicator measures the number of client days of training provided to youth i.e. the number of youth clients who completed training multiplied by the duration of training expressed in days.
Annual Progress report, annual PRODEL report,
PRODEL as well as M&E function of MINEPIA
Beneficiary satisfaction rate with quality of services provided by the project for the livestock sector (of which female and youth)
This indicator measures the percentage of beneficiaries who expressed satisfaction with the services provided in the project areas based on formal surveys. The sample size should be representative of the total number of beneficiaries. The livestock
PRODEL with national and regional project management units
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support services include, animal health services, the public livestock research and extension services, NGOs, and service providers involved in the targeted livestock value chains in the project areas This indicator requires two supplemental data segregated by gender and age group: (1) number of targeted beneficiaries satisfied with the quality of services, and (2) targeted beneficiaries of services and assets.
Youth This indicator measures the percentage of youth beneficiaries who expressed satisfaction with the services provided in the project areas based on formal surveys. The sample size should be representative of the total number of beneficiaries. The livestock support services include, animal health services, the public livestock research and extension services, NGOs, and service providers involved in the targeted livestock value chains in the project areas This indicator requires two supplemental data segregated by gender and age group: (1) number of targeted beneficiaries satisfied with the quality of services, and (2) targeted beneficiaries of services and assets.
PRODEL with national and regional project management units
Female This indicator measures the percentage of female beneficiaries who expressed satisfaction with the services provided in the project areas based on formal surveys. The sample size should be representative of the total number of beneficiaries. The livestock support services include, animal health services, the public livestock research and extension services, NGOs,
PRODEL with national and regional project management units
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and service providers involved in the targeted livestock value chains in the project areas This indicator requires two supplemental data segregated by gender and age group: (1) number of targeted beneficiaries satisfied with the quality of services, and (2) targeted beneficiaries of services and assets.
Number of communal management plans developed and implemented using a participatory approach
This indicator measures the number of communal management plans the design and implementation of which were elaborated with the active participation and input of relevant pastoral communities.
Number of hectares managed sustainably as part of the communal planning process
This indicator measures the area (in hectares) of land cultivated using project improved technology (ies) or management practice during the current reporting period.
Annual Direct observation, Semi-structured interviews, Review of signed agreements, Geo-referenced maps
PRODEL as well as M&E function of MINEPIA
Number of mediation platforms established and functional
This indicator measures the number of platforms that have a set of rules, meet regularly, have a president and secretary, and are made of more than five herders.
Market management platforms benefiting from the participation of herders’ organizations
This indicator measures the number of market management platforms in which herdersâ ™ associations are participating (by their presence in the different meetings and decisions made by the platform). A market management platform brings together the various stakeholders involved in the management of municipal markets and marketing of animals. It includes both existing platforms and those established by the project's activities.
Share of herders in the project area adopting at least one improved production practice under component 2
This indicator measures the number of herders in the project area who have adopted an improved production practice promoted by the project and described in the PIM.
This indicator measures the number of productive partnerships established thanks to the project. Established Productive Partnership has a buyer, a group of producers, and a well-defined product (quality, quantity, etc.) that is part of the value chains targeted by the project.
Annual Progress report, annual PRODEL report
PRODEL as well as M&E function of MINEPIA
Share of producers in productive partnerships who have adopted an improved agricultural technology promoted by the project
This indicator measures the number of herders of the project who have adopted an improved agricultural technology promoted by the project and described in the PIM (housing, hygiene, environment, etc.).
This indicator measures the number of business plans that received all the tranches of payment from the project.
Annual Progress report, annual PRODEL report
PRODEL as well as M&E function of MINEPIA
Grievances registered related to delivery of project benefits addressed.
The indicator measures the proportion of grievances received by the Grievance Redress Mechanism system (GRM) set up by the project that are actually addressed within the standard timeframe set up by the GRM system
Annual Progress report, annual PRODEL report
PRODEL as well as M&E function of MINEPIA
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Annex 2: Detailed Project Description
CAMEROON: Livestock Development Project
I. General project features
1. The project follows a demand-driven approach, to drive investments at the commune, communities and operators levels to increase productivity of targeted production systems and increase the revenue of livestock farmers. It also intervenes at relevant points in the system to improve service delivery. The project design is based on the following core principles:
(a) Responding to national demand: Consumption of animal products is growing rapidly in Cameroon and isn’t matched by national supply. The project will contribute to increasing national self-sufficiency rate by addressing some of the key constraints to the development of national production, including resource management, production technology, supply chain organization and regulatory framework.
(b) Community-Driven Development approach: The project will adopt a bottom-up, participatory approach rather than a top-down, prescriptive approach to support investment decision making. In component 2, the project will empower communes and communities to enable them to identify their priority demands and investments, and prepare and implement sub-projects aiming at securing access to pastoral areas, improving access to water resources, and sustainably managing pastoral resources (rangeland, grazing areas). With regard to sustainably managing pastoral resources, the project will promote SLM technologies and practices that had been developed under the Global Environment Facility-financed Sustainable Agro-Pastoral and Land Management. The project will build on established participatory processes, piloted by other development partners in the target areas. In case no operational participatory process is already in place, the project will facilitate and support the establishment of new ones following the successful approach deployed elsewhere. Needs assessment and consultation processes will be important/central elements of the interventions aiming at improving pastoral areas productivity. In component 3, producers’ organization will receive targeted training and technical advice to enable them to develop viable sub-projects/business plans that will be eligible for financing through the matching grant system. In addition, these POs will also benefit from the project activities geared towards establishing enduring productive partnerships with other actors in the value chain, particularly the buyers and FIs.
(c) Value chain approach: The project will work across the commodity value chains (input, production, processing, output markets etc.), establish productive partnerships between POs, buyers and FIs, provide technical assistance to enterprises, producers, and finance investments of a public good nature (e.g. on the animal health services) within sub-projects for POs that will contribute to achieving productivity gains in the targeted production systems.
(d) Multiperspective / Multistakeholders approach: The project will enlarge the scope of the discussion beyond agro-pastoralists and pastoralists people and support concertation mechanisms with other users of natural resources specially crop farmers, people in charge of protected areas and cynegetic areas,
(e) Conflicts prevention and resolution - Participative approach: The LDP will support conflict prevention and resolution through the establishment of concertation platforms/mechanisms to facilitate dialogue, planning and decision-making in a very participative way.
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2. Complementarity with other interventions and scalability. The LDP will ensure complementarity and alignment on similar interventions with ongoing projects developed by other donors and : (i) The French Development Agency (AFD) : ASGIRAP, ‘Projet d’appui à la sécurisation et à la
gestion intégrée des ressources agro-pastorales’, ACEFA, ‘Programme d’amélioration de la compétitivité des exploitations agricoles familiales agropastorales’, AMO, ‘Programme d’Appui à la maîtrise d’ouvrage des administrations du secteur rural’, AFOP, ‘Programme d’appui à la rénovation et au développement de la formation professionnelle dans les secteurs de l’agriculture, de l’élevage et de la pêche (AFOP)’
(ii) The Islamic Bank of Development (BID) : LIFIDEP, ‘Projet d’élevage et de la pêche dans la région du Nord- Ouest’, et le ‘Projet de développement des infrastructures zoo-sanitaires et de commercialisation du bétail’ in preparation. This projects aims to finance infrastructure to spur the development of the livestock sector. The market infrastructure to be built under this project will be complemented by the LDP through sub-component 2.2 activities.
(iii) The International Fund for Agriculture Development (IFAD) : PAEJ, Programme d’Appui à l’Entreprenariat Jeunes, PADMIR ‘Projet d’appui au développement de la microfinance rurale’
3. Knowledge-based. Knowledge management will be instrumental. Research results and innovations for the rehabilitation of natural resources, improved feed regimes, production practices, etc., developed by Institut de Recherche Agricole pour le Développement ( IRAD), ICRAF, ILRI, and other institutions will be explored and scaled up. The project will facilitate knowledge transfer, and build capacities of the livestock producers and pastoral communities. This will include, inter alia, activities to expose the livestock producers, pastoral and agro-pastoral communities to experiences and best practices from other areas in the region and/ beyond.
4. Gender and youth inclusion. The project has been designed to integrate issues and the needs particular to women and youth. Special care will be paid to ensure that interventions do not contribute to increased drudgery and burden for women. All interventions undertaken under LDP must demonstrate that gender issues have been considered whenever possible. A gender assessment will be conducted as part of the mid-term review, and its results will be used to adjust and improve the project's design as necessary. Progress reports such as ISR’s will systematically include reporting on gender. For activities under component 2 on pastoral systems, it is expected that gender facilitators with local language skills will be recruited to make sure that women are able to actively participate in the community based mechanisms for the preparation of participative pastoral areas management plans, and that they directly participate in all decisions. Data collected on beneficiaries will be disaggregated by gender. The capacity building activities envisaged under sub-component 1.3., will specifically include gender and youth criteria in the selection of institutional staff selected for short and long-term training to achieve an equitable balance between male, female, and young professionals. In addition, the criteria for the selection of sub-projects to be financed under component 3.2 will take into account gender composition of the POs submitting the SPs to be financed. ILRI has experience in integrating gender in livestock sector and will provide support to the project in that sense.
5. Nutrition-informed. Animal protein is an important aspect of balanced human nutrition, particularly during the early years of life. Livestock are important to the poor not only because of the economic contribution but because of their contribution to human development outcomes. Animals provide nutrients and micronutrients that would otherwise be scarce or nonexistent in local diets. Promoting livestock development has the potential to greatly improve human nutrition in rural areas. Evidence indicates that support for livestock development often translates into
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nutritional benefits for target communities; ownership of various livestock species increases consumption of foods from animal sources and improve children’s nutritional status27. In addition, the anticipated increased productivity and income levels of the targeted beneficiaries would enable them to diversify their food intake.
6. Greenhouse gas emissions / Climate smart agriculture. Livestock production critically contributes to the 3 outcomes of CSA: (i) it contributes directly and indirectly to food production and food security, (ii) it offers adaptation strategies, through assets diversification, coping mechanisms and water management, and (iii) it offers great potential for GHG emission intensity reduction and carbon sequestration. In terms of livestock production systems, CSA translates into four essential objectives: resource use efficiency, reduced conversion of natural habitats into agriculture, buffering and connection to markets. Most technical and institutional interventions will have effects on more than one of the CSA outcomes.
7. Private sector engagement. Seeking to develop productive alliances, the project design puts the development of effective market linkages at the forefront. The project will contribute to financing investments in production, transformation, storage and marketing. The aim of the project is to foster a deeper professionalization of the way the livestock sector is currently organized, matching producers with markets in a more formalized way, and develop relationships with the financial sector. The productive partnerships established under component 3 through the creation of consultation forums that involve POs, buyers, sellers, agro-dealers, and rural finance institutions can improve the commercialization of products and the supply of inputs, leverage credit, and ultimately contribute to strengthening supply chains.
8. Target production systems. The project will target three priority productions systems considered strategic both for food security/national supply and for their comparative advantage on the regional markets: pastoral systems, mixed crop-livestock systems and semi-commercial systems. The targeted species will be the following: cattle, small ruminants (sheep and goats), pigs, and poultry. In addition, and particularly to create income-generating activities geared towards females and youth, honey production will also be supported.
9. Geographic scope. For each of these species, the project will focus on the main production basins. As defined in the ‘Document de Stratégie de Développement du Secteur Rural, version 2014’, a production basin is an agro-ecological growing zone, a spatial unit for appropriate integral development of the best suited crop/livestock to the environmental conditions. The production basins are depicted in annex 9.
Component 1 Component 2 Component 3 Geographic coverage Main livestock
production basins (see annex 9)
30 communes in 4 regions
Main livestock production basins (see annex 9)
Regions All the 11 regions Targeted agro-ecological areas in each region
Far North, North, Adamawa and East
All the 11 regions Targeted agro-ecological areas in each region
27 Azzarri, C., E. Cross, B. Haile, and A. Zezza (2014), “Does Livestock Ownership Affect Animal Source Foods Consumption and Child Nutritional Status? Evidence from Rural Uganda,” Policy Research Working Paper No. WPS 7111 (World Bank, Washington, DC).
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II. Project description
Component 1: Improvement of livestock services access and delivery (US$26.63 million: US$24 million IDA; US$0.09 million Beneficiaries; US$2.04 million Government; US$0.5 million PFIs)
10. Despite the country’s clear potential to develop the livestock sector, binding constraints have led to low productivity and low production in livestock systems. Among the main constraints to all value chains, access to key livestock services is critically insufficient: insufficient supply of animal health services (prevalence of parasites and infectious diseases that affect 70 percent of heads), low productivity of local breeds and limited access to high quality inputs. Unlocking the potential of the livestock sector requires a substantially improved access to functioning key services for livestock farmers.
11. The component’s main objective is to improve access to essential livestock support services for livestock producers, especially animal health services, improved genetic material and high quality inputs. To achieve this objective, the component is organized around 4 sub-components: (i) Improving animal health services, (ii) Improving access to quality inputs, (iii) Institutional support to MINEPIA, and (iv) Contingency emergency response.
Under component 1, the project will intervene on the main livestock production basins (targeted agro-ecological areas in each of the 11 regions). The production basins are depicted in annex 9. 12. Sub-component 1.1: Access to Animal health services. To improve animal health services, the project will: (i) Strengthen National Veterinary Services28 (NVS) capacities, and (ii) Support surveillance and control of animal diseases and veterinary medicines. Strengthening the epidemio-surveillance and early detection systems will enhance the early detection and rapid response of major animal diseases such as Contagious Bovine Pleuro-Pneumoniae (CBPP), Plague of Small ruminants (PPR), Newcastle disease (NCD), and Classic/African swine fewer (ASF/CSF). This sub-component will also contribute to the control of productivity-affecting diseases, such as parasitic, vector-born or bacteriological ones, through strengthening the private veterinary practices and services, and reinforcing its links with the veterinary public authorities, through the sanitary mandate (‘Mandat Sanitaire’). Beyond better controlling diseases of production, strengthening veterinary services will also contribute to address zoonotic diseases and to improve the situation regarding antimicrobial resistance. The sub-component builds on the results from the evaluation of the quality of veterinary services conducted by the World Organization for Animal Health (OIE) in 2008, as well as the "Performance of Veterinary Services" (PVS) tool developed by this organization and its subsequent "Gap Analysis" undertaken in 2011.
13. In terms of the VS delivery capacity, the project will finance, inter alia: a) the development and operationalization of an animal health information system at the Directorate for Veterinary Services (DVS); b) the operationalization of the regulatory framework governing the animal
28 OIE defines veterinary services as governmental and non-governmental organizations that implement animal health and welfare measures and other standards and recommendations in the terrestrial Code and the OIE Aquatic Animal Health Code in the territory. The Veterinary Services are under the overall control and direction of the Veterinary authority
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health system (including the "Sanitary Mandate"), entailing support to the Government's field services (VZC), and private veterinary practices; c) strengthening the National Order of Veterinarians in Cameroon to ensure the quality of service delivery; and d) training and awareness building of POs. Support to surveillance and control of animal diseases will include financing for: a) surveillance activities ("passive" and "active"); b) a vaccination campaign for PPR, to vaccinate an incremental 15 percent of small ruminants, in line with Government's commitment to the global effort to eradicate PPR in the world; and c) the update and field-testing of animal health emergency plans.
14. The project design draws upon findings and recommendations of Cameroon’s PVS pathway29 reports, which provide an objective way of identifying priorities and guiding investments for the sustainable improvement of NVS.
15. Capacity building of National Veterinary Services will include : (i) Development of the information system at the Veterinary Services Direction (DSV) :
detailed study of the design of the system, development of required software, acquisition of specialized equipment, technical assistance to set up and train DSV staff;
(ii) Animal health regulatory framework improvement : Organization of and control over the private veterinary profession, including veterinary pharmacy profession, definition of the content and scope of public tasks delegation, organization of veterinary controls
(iii) Support to MINEPIA’s field services, Veterinary and zootechnical centers30 (VZC): initial assessment to identify VZC specific needs, provision of critical investments to enable the VZC’s to effectively deliver the requisite services to the livestock producers they serve. This will include staff training, acquisition of equipment, transportation facilities, etc.
(iv) Support to private veterinary practices: a mapping study to determine areas where reinforcing animal health services is critical, and where a strong potential exists to install private veterinarians. Once determined, the project will provide support to facilitate the functioning of these private veterinarians who will be delegated pre-defined responsibilities in line with the sanitary mandate. The long term goal is to establish a network of private veterinary practices so that producers can access the required services when needed. These private veterinary practices will be compensated in part through direct payments from the producers for services delivered (e.g. for parasitic control), and by the Government for certain state sponsored animal health initiatives (e.g. partial payment for vaccinations of a public good nature);
(v) Support to the National Order of Veterinarians in Cameroon (ONVC31) to ensure the policing of veterinary profession : support to ONVC’s central headquarter, expansion of ONVC’s network, developing twinning arrangements with a well-functioning veterinary association abroad;
(vi) Support to producers organizations to facilitate the delivery of animal health services : support to the creation or strengthening of producers organizations, which will contribute to a more effective animal health services delivery; producers will be trained and sensitized
29 Cameroon has engaged in the OIE PVS (Performance of Veterinary Services) Pathway, a global program set up by the OIE for the sustainable improvement of NVS toward compliance with international standards of quality of Veterinary Services. PVS pathway reports provide an objective and harmonized qualitative and quantitative elements helping to identify priorities and guide investments 30 VZC are MINEPIA’s field services executing all basic veterinary services (epidemiological surveillance, prophylaxis, sanitary inspection and police) 31 ONVC has the responsibility to deal with registering all animal health professionals, with illegal activities and illegal trade in veterinary drugs;
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to provide feedback on animal health status, participate to vaccination campaigns organization, raise awareness of producers on disease control and surveillance plans;
16. Support to surveillance and control of animal diseases will include :
(i) Surveillance activities : both passive surveillance throughout the national territory for reported illness and active surveillance centered on priority diseases (CBPP, PPR,CSF/ASF, and Newcastle) based on the collection and processing of samples and available data, control of veterinary drugs;
(ii) Support to vaccination programs: funding of vaccinations under the animal health mandate to vaccinate an incremental 15 percent of small ruminants herd for PPR, compared to the actual vaccination coverage. Producers will be expected to contribute partially to the cost of the vaccination.
(iii) Support to the update and field-testing of animal health emergency plans: technical review and update of all emergency plans, staff training for the implementation of emergency plans at national, regional and local levels, full-scale test based for ASF/CSF.
17. Sub-component 1.2: Access to high quality inputs. This sub-component aims to improve access to improved genetic material, and access to improved feed, particularly improved fodder. To improve the availability of improved breeds and pasture seeds, the project will: (i) assist MINEPIA to develop a strategy for improving the supply of improved animal genetic resources in the country and an associated investment plan, and (ii) partially finance the investment plan, particularly by providing support to five breeding and seed centers32, pre-identified during the preparation33, who will ensure supply of improved breeds and pasture seeds to the POs targeted under component 2 and 3. Specifically, this sub-component will finance the rehabilitation of five breeding centers for small ruminant and pig production, the acquisition of parent stocks and other related inputs. The sub-component will expand some of the work that the BecA-ILRI Hub has undertaken (under the Swedish-funded goat improvement program) with the MINEPIAin Cameroon to develop capacity at some of the breeding centers. The breeding centers will be subject to an institutional analysis to determine key bottlenecks in their functioning, and explore viable options to attain efficiency gains, and improve the performance of these centers. To improve access to high quality feed sources, the project will: (i) promote good practices in feed production at farm level, and develop norms and quality standards for feed for the targeted value chains, and (ii) support MINEPIA’s basic control activities to ensure the quality of breeds, feed and pasture seeds provided to the beneficiaries.
18. Sub-component 1.3: Institutional support, capacity building and communication. This sub-component will strengthen staff capacity in the ministry to carry out its core responsibilities including sector analysis, policy preparation and implementation, sector monitoring and evaluation. Activities include: (i) identification of short- and long-term training and education needs to increase the pool of specialized experts and financing of this plan for targeted trainings to build long-term capacity in the country34, (ii) improvement of the MINEPIA’s information system, based on the diagnosis and recommendations prepared through the AMO-AFD35 program. The project will finance a number of activities to upgrade the system (equipment, 32 An MOU will be signed between these centers and the Project, detailing the modalities of supplying improved breeds and seeds to the target beneficiaries. 33 Kounden and Centre stations for pigs, Louguere and Dogba for small ruminants and fodder crops, Wakwa for fodder crops 34 Specific attention will be given to include both male and female professionals in long and short trainings 35 Programme d’appui à la maîtrise d’ouvrage de l’Agence Française de Développement
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software, services) and support the operating costs of the system (staff training, data collection, services, and contracts with external services providers), (iii) develop a communication strategy and implementation plan on the sector to improve the relation between the ministry and key stakeholders involved in the targeted value chains, including private investors and financial institutions , (iv) support to further develop food-safety norms for livestock products, quality standards and their reinforcement, which will include the provision of specialized equipment, transportation, etc., (v) support (capacity building, equipment, and locally sourced technical assistance) to ten regional centers of information and promotion of livestock products (“Maisons des éleveurs”), (vi) strengthening of inter-professional livestock associations (“Inter-professions”), and (vii) development of a contingency emergency response plan, to increase preparedness in the event of a crisis affecting the livestock sector. 19. Sub-component 1.4 – Contingency emergency response. Following an adverse natural event that causes a major natural disaster, the government of Cameroon may request the Bank to reallocate project funds to support response and reconstruction. This component will draw resources from the unallocated expenditure category and/or allow the government to request the Bank to re-categorize and reallocate financing form other Project components to partially cover emergency response and costs. This component could also channel additional funds should they become available as a result of an eligible emergency.
20. Detailed operational guidelines acceptable to the Bank for their implementation of the Contingency Emergency Response component under LDP will be prepared during the first year of project implementation. Should this component be triggered, all expenditures will be made in accordance with paragraph 12 of OP 10.00 and will be reviewed and accepted by the World Bank before any disbursement is made. In accordance with paragraph 12 of OP 10.00, this component would provide immediate, rapidly disbursing support to finance goods (positive list agreed with the government), works, and services needed for response, mitigation, and recovery and reconstruction.
21. Goods, works, and services under this component would be financed based on a review of satisfactory supporting documentation presented by the government, including adherence to appropriate procurement practices in an emergency context. All supporting documents for reimbursement of such expenditures will be verified by the internal auditors of the governments and by the project director, certifying that the expenditures were incurred for the intended purpose and to enable rapid recovery following the damage caused by adverse natural events, before the application is submitted to the Bank. This verification should be sent to the World Bank together with the application. Component 2: Improvement of pastoral productivity, access to markets, and resilience of pastoral communities (US$25.98 million: US$24 million IDA; US$1.14 million Communes; US$0.84 million Government) 22. The component's main objective is to increase the contribution of pastoral areas to the domestic supply of red meat (especially for urban markets) while upgrading livestock production systems (cattle, small ruminants, pigs, poultry) for poor and conflict-affected communities. The component will increase productivity of pastoral production systems and improve transhumance and security by financing Sub-Projects (SPs) that will be presented and managed by local communities. This component will adopt a collective and community-based rangelands
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management approach. Since Communal Development Plans (CDPs) comprise priority investments for communities that may include sustainable land management investments to address land/landscape degradation, community SPs on pastoral management will be identified in CDPs already prepared within PNDP-II and III, and implemented following the same mechanism used by PNDP-III. Component 2 consists of three sub-components: (i) Support to animal production practices and the community based management of pastoral areas;(ii) Support to commercialization and marketing of pastoral livestock products; and (iii) Provision of animals (cattle, small ruminants, poultry) to households in conflict-affected communities. 23. Thirty communes will be selected for the implementation of the component, in areas used by pastoralists, either as main resource (“territoire d’attache”), or transit area: these are the entire regions of Far North, North and Adamawa, as well as part of the East region. The direct beneficiaries of the component are pastoralists, particularly those of them, large or small holders, who want to move towards a more commercially oriented activity. Implementation partnerships will be explored with agencies currently active in the targeted regions (e.g. SNV, APESS36, and other NGOs). 24. Sub-component 2.1 – Support to animal production practices and the community based management of pastoral areas. The main objective of this subcomponent is to improve the livestock production practices (including herd management) by promoting better management of pastoral and animal resources, increasing forage productivity, securing pastoralists' access to resources, and reducing conflicts. At the core of the sub-component is the support to dialogue processes and shared management of resources as well as the implementation of communal level management plans for pastoral resources (MPPR) following the approach developed and successfully implemented under PNDP. Activities will include: (i) Participatory development of MPPR37, (ii) Implementation of the management plans, and (iii) Improvement of production practices following successful models currently implemented by development partners in the target areas. Specific activities will include:
(i) Participatory development of MPPR:
(a) Survey and assessment of pastoral resources38, particularly with regard to grassland productivity, existence/status of equipment and infrastructure (grasslands, water, roads, markets), current management practices, rules and institutions in place, conflicts, and production potential.
(b) Strengthening existing - or establishing new - platforms and processes for a peaceful and equitable participation of all stakeholders (including women and the youth) to the development of management plans. Depending on the region, and on the capacity of local institutions, these consultation frameworks may be attached either to municipal bodies or pastoralists’ associations.
(c) Support to the collaborative development of management plans for pastoral resources (MPPR). This includes capacity development among local stakeholder participating in the process and technical support during the design phase of the MPPRs, including for their
36 Association Pour la Promotion de l’Elevage au Sahel et en Savane 37 Management plans for pastoral resources include vector management (e.g. Tsetse), and control of invasive plant species. 38 Especially, mapping of pastoral areas on the model developed by SNV
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economic analysis. Specific attention will be given to vector control activities (e.g. Tsetse), and tackling the challenges of invasive plant species throughout the preparation of MPPR.
(d) Promotion of inter-communal management of transhumance by supporting inter-communal consultations.
(e) Promotion and support to conflict resolution mechanisms through the establishment or strengthening of specific platforms for dialogue and conflict management at local level (sub- municipal), involving the various minorities and users of pastoral areas, including pastoralists and agro-pastoralists
(ii) Implementation of the management plans: (a) Co-financing of investments related to the implementation of management plans, to the level of 90 percent of the overall amount (the rest being provided by the commune), and provision of backstopping for the technical design and execution of works. Investments may regard: access roads, delimitation of pastoral areas and transhumance corridors, water points, animal health infrastructure, improvement or regeneration of grasslands, as well as the eradication of Tsetse and weeds.
(b) Where needed, establishment of management committees for grazing lands and pastoral infrastructures, and support to their operation, in particular for the monitoring of grassland quality and degradation factors.
(c) Support to the dissemination of legal documents related to the management of pastoral resources, including in local languages.
(iii) Improvement of production practices: (a) Participatory design of technical plans for a progressive and sustainable intensification of pastoral systems, including: animal fertility and health management, fodder production, feed supplementation, fattening of young animals, manure management, and identification of animals to be marketed.
(b) Strengthening of agricultural extension services, starting with the selection of extension workers, their training and a contribution to operating costs.
(c) Strengthening the capacity of pastoralists through producers associations, ensuring that producers receive individual support and follow-up provided by extension workers. These interventions will build on and adapt successful advisory support models currently implemented in the region39. They may include the distribution of limited quantities of inputs, as incentives to the implementation of improved production practices.
25. The provision of MPPR Subproject Grants to Participating Pastoral Communes will be guided by detailed criteria laid out in the Project Implementation Manual, and will include a selected number of Subprojects to be financed under the annual investment plans of the targeted communes. The final Annual Investment Plan for each commune is reviewed and approved by the Municipal Council and validated by the Divisional Officer. The MPPR Subproject to be financed by the project will be selected by RPSCs based on the eligibility criteria spelled out in the Project Implementation Manual, which will include the following: (i) The MPPR Subproject is an integral part of the Communal Development Plan and the Participating Commune’s Annual Investment Plan; (ii) the MPPR Subproject will be implemented by members of the respective Commune; (iii)
39 PIDMA, ACEFA, PEAJ, AFOP
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the MPPR Subproject is located in the intervention area of the project; (iv) the MPPR Subproject investments will be in an accessible area and within a reasonable travel distance, allowing satisfactory monitoring of sub-project investments; (v) no other source of financing will support the implementation of the MPPR Subproject other than the co-financing to be provided by the Communes (10 percent); (vi) all relevant Safeguard Instruments have been prepared and relevant activities are taken into account within the SP; (vii) a committee for the management of the MPPR Subproject composed of representatives from beneficiaries has been put in place, taking into account gender and youth considerations; and (viii) adequate arrangements have been made to ensure the maintenance of the results obtained through the SP investments after the lifespan of the project. 26. Sub-component 2.2 – Support to commercialization and marketing of pastoral livestock products. The main objective of this subcomponent is to increase the amount and quality of animals and animal products marketed by pastoral communities in intervention areas, this implies a more pronounced shift towards market-orientation and commercialization. Activities to be financed would include: i) Strengthening and / or support the establishment of dialogue platforms bringing together the
various parties involved in the management of municipal markets and marketing of animals. These platforms exist in some municipalities of the project area and ensure a more transparent and participatory management of the rules governing market access, of the roles and responsibilities of each actor and of the levy of taxes and fees;
ii) Strengthening the marketing capacity among pastoralists and pastoralists associations. This will be done through facilitating market linkages between producers and potential buyers, supporting the POs to enable them to strategically organize and transport animals and livestock products to the markets, and promoting the joint assessment by POs and buyers of the quality of the livestock products being sold; and,
iii) Improving market information, focusing on the access by pastoralists to pertinent market information. The project will make use of modern information and communication technologies, to which farmers now have access (e.g. mobile phones), to disseminate updated information on market prices, supply levels and transaction costs. An intervention strategy will be developed during the first year of the project, building on the existing information portal (CAMAGRO: agro-pastoral information portal established by CAMTEL).
27. Sub-component 2.3. Improving the resilience of poor and conflict-affected communities. This sub-component will improve the coping ability of the poorest or the most vulnerable communities affected by the crisis in the North and Far North regions of the Country. Given the insecure, and at times perilous environment prevailing in these areas, implementation will deliberately follow a simplified design by focusing on investments that will yield results in the short term and address the immediate effects of poverty and of conflict and fragility, whilst engaging these communities and community based organizations directly to strengthen their resilience and facilitate the emergence of a more inclusive social contract. This sub-component will provide beneficiaries with productive safety nets that are considered by the SCD as top priorities in terms of contribution to poverty reduction and political feasibility, and that focus on livestock value chains that are most relevant for poor farmers. By concomitantly strengthening their capacity to settle disputes and mediate in conflicts (e.g. through the project’s grievance
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redress mechanisms40), the likelihood of conflict escalation could also be lessened. This approach will build on ongoing initiatives, which work with communities through the Plans de Devéloppement Locaux in PNDP. 28. Under this sub-component, the targeted communities will receive tailored support to restore animal production systems of well targeted beneficiaries representing the poorest and/or conflict-affected (internally displaced) households in the North and Far North. To this end, this sub-component will provide training, capacity building, and productive assets to these communities to better cope with the adverse conditions they are living under. This would entail building capacities at the local level and facilitating citizen participation and social accountability in a systematic way. Women and youth would be specifically engaged, as well as affected pastoralist communities and IDPs. The productive assets to be allocated to the beneficiary households will consist of: livestock assets (e.g. cows or equivalent number of small ruminants), veterinary and feed kits, and small processing or storage equipment. Beneficiary households will be among those identified by the Bank-financed Safety Net Project, SNV or Union Nations Agencies with ongoing initiatives in the North and Far North Region.
29. Sub-component 2.3 will also support specific activities geared towards women’s groups, such as investment in nutrition-sensitive agricultural interventions and behavioral change communications strategies to target wide audiences, especially women, on issues related to access to new technologies, maternal care, and child feeding practices. Depending on real opportunities and needs, the support will include labor-saving devices to reduce women’s workload, promotion of diversified food production, income generation, promotion of improved complementary food items for young children, thus contributing to improving the livelihood of rural women in Cameroon.
30. Implementation of this Sub-component 2.3 would be entrusted to a UN agency or NGO already operating on the ground with sufficient staffing capacity and proven delivery ability. The choice of implementing partner will be based on the ongoing experience of Bank projects already operating through these agencies in these regions (e.g. CAMSAN, Social Safety Nets, and PIDMA). The provision of Grants to the poorest or the most vulnerable communities affected by the crisis in the North and Far North regions of the country will be guided by detailed criteria laid out in the Project Implementation Manual. 31. Component 3: Support to livestock value chains development (US$64.67 million: US$40 million IDA; US$5.91 million Beneficiaries; US$0.5 million Government; US$18.26 million PFIs) will support development of pig, poultry, beef, goat, sheep, milk and honey production and value chains in target areas. The component will establish “Productive Partnerships” (PPs) between livestock POs and buyers (Agri-Businesses: agro-industries, small and medium enterprises, etc.). These PPs will be supported through the provision of matching grants, contingent upon contractual arrangement between producers and buyers, and will facilitate access to rural financing for investing in various PO Sub-Projects (SPs). The selection criteria and mechanisms for POs, PPs/SPs will be detailed in the implementation manual. The component will include two subcomponents: (i) Establishment of a Productive Partnership Scheme; and (ii) Financing of SPs for POs. This component will build on experiences gained through the implementation of PIDMA (PP and business plan approach), and successful initiatives piloted by other development partners, particularly the initiatives related to training and development of 40 The GRM will build on existing mechanisms, such as the “Commission for the Regulation of Conflicts”.
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advisory services. The medium term outcome to be achieved in targeted zones is an increase in the value of incremental sales by targeted producers, which is a proxy for improved market access and progress towards commercialization. To achieve this outcome, a national and regional dialog platform between the actors of the targeted value chains will be established; Productive Partnerships (PPs) that link producers to buyers and financial institutions to generate a demand driven supply of higher value products will be put in place; the volume of loans granted to eligible producers will be increased; the number of financed businesses that met their loan repayment schedule will be increased; and the number of producers that integrate best practices into their business operations will be increased. Direct and specific targets for the support of indigenous Baka communities in the East will be provided as outlined in the IPPF prepared for the project. 32. Sub-component 3.1.Establishment of Productive Partnership Scheme. This sub-component will promote and develop Productive Partnerships between POs and buyers of products (meat, milk and honey) of target species (cattle, goat, sheep, pig, poultry and bees) to match PO supply to buyers demand. Financial Institutions (FIs) will be included in the PPs as they are expected to co-finance the sub-projects to be developed by the POs. The Productive Partnership’s will be based on the following principles: (a) agreement on product quality and characteristics such as size and species to be produced; (b) quantity to be produced and bought; (c) delivery modalities: how the product will be delivered, when, and in what condition; (d) payment modalities and price determination criteria; and (e) the buyer’s contribution, such as Technical Assistance (TA), specific inputs, and arrangements for input reimbursement. The sub-component will also support the establishment of sustainable business relations between targeted POs and Financial Institutions (FIs). To facilitate the involvement of FIs and the provision of adapted financial services, it will support capacity building of POs in the area of preparation of viable sub-projects (business plans) for financing including training in Business Edge, as developed within the ongoing Bank financed PIDMA. Direct and specific targets for the support of indigenous Baka communities in the East will be provided as outlined in the IPPF prepared for the project.
Figure 2.1: Productive partnership’ scheme
33. The overall aim of this component is thus to create an enabling environment for direct and sustainable commercial relations between producers and buyers of products of the targeted value chains, and FIs, as depicted in figure 2.1 above. Activities will include: (i) improving the understanding of the supply and demand of the products of the targeted value chains, by supporting market studies and surveys to characterize the supply and demand, by organizing communication and dissemination campaigns to inform stakeholders about the project, by supporting the restructuring and professionalization of demand and supply, and by creating an online-based market information system; (ii) connecting the demand and supply through the identification of business and market opportunities, the establishment of a dialog platform between the government
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and key stakeholders, and the establishment of PPs, which will be concretized by the development of the sub-projects (business plans); (iii) mobilizing financial institutions by negotiating a co-financing agreement for the SPs, and by providing a technical assistance on the design and development of financial services and products that are tailored to the diversity of financing needs of the eligible SPs.. Activities to be financed would include:
(i) Improving the understanding of the supply and the demand of the products of the targeted value chains:
(a) Support for market studies and surveys for the identification, characterization, and diagnostic of producers and potential buyers.
(b) A communication and dissemination campaign to inform potential stakeholders about the scope and rules of the Project through local workshops and mass-media outlets. Its aim is to ensure that producers and producers’ organizations, potential buyers and providers of goods and services become aware of the opportunities presented by the Project. This activity will also include the publication of different activities throughout the Project’s life, such as financing awarded to selected sub-projects under sub-component 3.2, good practices and results. Successful initiatives, that can be replicated, will be disseminated to share knowledge on improved production technologies and feasible business opportunities.
(c) Support for the restructuring and professionalization of demand and supply. Horizontal integration is important for small scale producers because it allows them to achieve economies of scale in supply, reduce transaction costs, and increase their bargaining power. Similarly to the PIDMA project, the sub-component will support the structuring of producers and buyers into cooperatives through the provision of trainings and advisory services on the registration process, good governance of cooperatives, etc.. Main activities will include: (i) supporting cooperative registration by developing and disseminating registration forms; (ii) establishing an interactive and web-accessible database on cooperatives (building on work already started under the “Projet d’Appui au Développement de la Micro-finance Rurale” (PADMIR) and the “Projet d’Appui à la Réforme Institutionnelle’” (PARI); and (iii) TA on cooperative management for new cooperatives.
(d) Creation of an online-based information system on markets, prices, services, and financial products, technology, POs, etc. that will be open to all value chain actors.
(ii) Connecting the demand and the supply:
(a) Market studies to identify business and market opportunities between POs, Buyers and FIs at the national, regional, and international level.
(b) Establishment of a dialogue platform between the government and key stakeholders (producers, POs, buyers, and financial institutions) through workshops, TA, mediation services, etc. The dialogue platform will provide a mechanism for identifying key issues, setting priorities, and coordinating actions along targeted value chains.
(c) Establishment of Productive Partnerships. To enhance producers’ prospects of establishing viable and durable commercial relations with buyers, the project will support the identification of buyers that have a demonstrated demand for livestock products generated from the targeted value chains.
(iii) Support for the preparation of business plans and the implementation of producers’ subprojects (SPs):
(a) Strengthening of the capacity of technical local service providers (LSPs) that will support eligible producers and POs in preparing their SP proposal (business plans). This will be
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achieved through the provision of trainings to LSPs on Productive Partnerships’ concept and processes, and on the elaboration procedures of business plans. This subcomponent will also involve the management of a goods and services provider database.
(b) Support for the preparation of business plans by producers. This activity will finance strengthening of the institutional capacity of eligible producers to prepare their Subprojects (business plans). These technical assistance services will be provided by LSPs consultants selected by the project and trained in a).
(c) Support for the transparency of the preselection process of eligible business plan proposals. This activity will ensure that business plan proposals are pre-appraised in an objective and transparent way to mitigate the risk of elite capture and avoid conflict of interest or the appearance thereof. To do so, the NPCU and RCUs will perform regular desk reviews and fact-finding field visits in order to ascertain eligibility, potential feasibility, and ensure that safeguard issues are taken into account in a satisfactory manner. The NPCU and RCUs will also provide punctual guidance and support for Regional Pre-Selection Committees (RPSCs) that are tasked with preselecting eligible business plan proposals, thus ensuring that the detailed eligibility criteria as established in the Project Implementation Manuals are closely followed.
(d) Selection of business plans to be financed. Following pre-appraisal selection, shortlisted SP business plans that do not require financing from FIs, i.e. for business plans where the POs are able to mobilize 40 percent of the financing required, are recommended for appraisal by RPSCs. The business plans that require external financing will be presented for final appraisal and approval to the financial institutions. This activity will support updating and reviewing business plans based on the feedback received from Buyers and FIs.
(e) Development of management capacity of POs and producers. This activity will finance the provision of support to eligible POs and producers on basic management concepts, including basic accounting and financial management; corporate governance and business plan management; and procurement.
(f) Establishment of a technical and economic monitoring & evaluation system. This activity will support the effective translation of business plans into projects by training local service providers who will accompany the implementation of SPs. To do so, the activity will provide support to LSPs on subproject execution, engagement with purchasers, and implementation of institutional strengthening strategies. LSPs will also help the Project to operate the M&E system, monitoring and reporting process and results indicators, and supporting field evaluations.
(iv) Mobilizing financial institutions: Access to credit is key for the success of the PPs. However, the financial products currently marketed by commercial banks, MFIs, and leasing companies fail to respond to the needs of the livestock sector. The Project will support the participating financial institutions (PFIs) to develop adapted financial services to meet the specific needs of the POs along the targeted livestock value chains (VCs). The livestock sector analysis highlighted the need for an in-depth capacity building support, especially to better structure and organize the POs and other potentially targeted VC actors. The goal of this activity is to create sustainable business relations between livestock producers /POs and FIs. To do so, this activity would support a review of existing services and financial products to the livestock sector, and will propose the necessary adaptations or innovations. In addition, the project will provide technical assistance on the design and development of financial services and products that are tailored to the diversity of financing needs
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of the eligible SPs. Specifically, the activity will carry out a capacity needs assessment of FIs in the area of livestock credit and risk assessment, and will provide targeted support, such as technical tools, to address specific weaknesses. The project activities will include: (i) support to PFIs to develop adapted financial services and products for livestock, to improve their management information systems and to develop risk assessment and management tools; (ii) facilitation of business relationship between SP/BP promoters and PFIs; and (iii) training of PFIs in animal production/value addition credit appraisal and risk analysis. (v) Collaboration with IFC: Capacity-building activities related to POs’ business and administrative skills will be conducted in partnership with IFC through its Business Edge partners. Through the “Business Edge TM’’ training system, IFC has developed a pool of local trainers and training firms. The Project will contract them for development of the above-mentioned capacities. It is noted that the role of IFC will be limited only to the supervision and evaluation of the trainers, covered by its own cost, and there will be no direct financial transactions between the Project and IFC. In addition, the Project will undertake a capacity needs assessment, the organization of training, and an impact assessment. 34. Subcomponent 3.2 - Financing of Sub-Projects for Producer Organizations will finance PO SPs (business plans) which have been developed by POs engaged in the Productive Partnerships established under sub-component 3.1 to strengthen their capacity to increase the productivity and production of selected livestock products in the targeted value chains. Based on a PO’s business plan, investment will cover individual and collective investments (feed production and processing, improved animal husbandry techniques, small-scale processing units/equipment, waste management systems to minimize greenhouse gas emissions, pollution and dissemination of pathogens, renewable energy (bio and solar energy) supply, TA and training) through a Matching Grant aimed at increasing production and productivity, improving post-harvest (including processing) facilities, and quality. A conditionality mechanism will be built into the Matching Grant to ensure that the sub-projects do not generate negative externalities, and will be screened for potential adverse effects on the environment and public health.
35. Selected SPs will be financed through a combination of an IDA-financing, a contribution from the POs, and short to medium-term credit provided by participating FIs. The mobilization of the grant element (max 60 percent, with a ceiling of maximum $150,000 per SP) will be subject to the mobilization of the SP’s originator’s own resources (min. 10 percent of the SP’s investment costs, in cash) and the credit extended by the FIs41.
36. The eligibility criteria as developed under PIDMA include a financially and technically sound SP business plan detailing the investment costs and financing; the operational and general costs; technologies considered; targeted markets and input/output price assumptions; organizational and capacity-building needs and proposed activities; operational, environmental; and social risks and mitigation measures; a multiannual cash projection (before and after financing through the grant; POs’ own resources, and loans);a profitability analysis (comparing the “with Project” and “without Project” situations); and key indicators such as FIRR, NPV, return on capital, and the profitability ratio (benefits before and after tax on sales). A key objective of the matching grant scheme is to consolidate the productive partnerships with buyers and agri-business; for that reason, project resources earmarked for matching grants will be allocated contingent on
41 Sub-projects will also be considered for certain POs that are able to mobilize 40 percent of the investment cost through their own contribution, without involvement of FIs.
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the existence of (in-) formal arrangements with buyers, as the matching grants should be allocated to match existing demand of buyers and not be based on market forecasts or speculation.
37. Targeted categories of investments include the following: (i) access to improved animal and plant genetic material to adopt improved production technologies; (ii) construction or rehabilitation of storage facilities at the PO level; (iii) access to mechanization services or equipment to upgrade production and increase processed volumes; (iv) access to equipment and technologies increasing product quality during primary processing; (v) access to modern processing equipment to add value to produce at the PO level; (vi) re-use and processing of crop byproducts as animal feed, livestock wastes, and breweries by-products; and (vii) provision of support on access to financial services, business management, market and marketing, information technology, organic certification and other technical productive services. Component 4: Project coordination, management, communication and monitoring (US$16.87 million: US$12 million IDA; US$4.87 million Government). 38. This component focus on all aspects related to project management including fiduciary aspects (financial management and procurement), M&E, knowledge generation and management, communication and the monitoring of safeguard mitigation measures. The objectives of this component are to: (i) ensure effective strategic and operational planning and implementation of the project in accordance with the loan agreement, (ii) ensure efficient coordination for project activities, and (iii) adequately monitor project implementation progress, evaluate its final results and impacts on livestock producers and AB operators and communicate efficiently on project activities, outcomes and lessons learned. This component has two sub-components.
39. Subcomponent 4.1: Strategic Planning, Coordination and Implementation Support. This subcomponent will support the establishment and operation of both Project Steering and Technical Monitoring Committees (PSC&TMC). It will finance: (a) the organization of the Project launching workshops at the national and regional levels; (b) regular coordination meetings at both national and regional levels involving various project stakeholders including representatives from line MINEPIA divisions, CSOs, POs ’umbrella organizations, research institutions and private sector (ABs, FIs, LSPs) involved in the livestock value chains and (c) the operation of both PSC and TMC. While the TMC is the implementation monitoring body of the Project, the PSC will frequently meet twice a year to approve the annual work plan and budget, supervise the project modifications based on the M&E results and approve subsequent modification of the implementation plan. The meetings and oversight missions of these two supervision bodies will be supported by the Project.
40. This sub-component will also support the establishment and operation of the NPCU and three RCUs out of which (i) Far North/North/Adamawa (FN/NO/AD) regions; (ii) Littoral/South-west/West/North-West (LT/SW/W/NW) regions and (iii) Central/South/East (CE/S/E) regions. It will finance staff salaries, trainings of the staff of both NPCU and RCUs, equipment, operating costs, and various audits (technical, procurement, and financial audits).
41. Sub-component 4.2: Monitoring and evaluation, communication and knowledge production and sharing. This sub-component will support the (i) monitoring and evaluation of the performance and the financial, environmental and social impact of the project; (ii) development of communication activities to publicize and disseminate project implementation tools, results and best practices and (iii) production and sharing of knowledge through key studies aiming at
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preparing the project’s interventions and documenting lessons for dissemination at the local, regional and national levels.
42. Monitoring and evaluation (M&E). The M&E is an integrated and participatory system. It requires the contribution of all stakeholders in the Project implementation. Its responsibilities at internal level consist of: (a) monitoring the implementation of activities and (b) evaluation of socio-economic and environmental impacts. The monitoring and evaluation framework begins with the collection of data required to monitor the production of monitoring and evaluation reports. Collection involves technical, administrative and financial data on the project. The technical data are collected directly from POs and breeders project beneficiaries, either by direct observation or by interview of beneficiaries. The administrative and financial data are gotten from the regular centralization of various reports on implementation of sub projects under operation or the functions of MINEPIA’s divisional focal points. All information collected at the divisional level will be treated by the MINEPIA focal points. The primary treatment provides data that can be integrated into the tracking software and TOMPRO or TECPRO evaluation. Monitoring and evaluation reports are produced quarterly by the divisional focal points. At the regional level, the responsibilities of monitoring and evaluation are basically oriented towards the exploitation and deep analysis of the information provided by the MINEPIA focal points. It consists of the: (a) programming of activities in the region; (b) monitoring the implementation of activities and (c) assessment of socio-economic and environmental impacts. The methodology for monitoring and evaluation depends on the stage at which the process is found. The data collection also concerns technical, administrative as well as financial data. Here, it entails collecting and treatment of outcome indicators. Just like the treatment at the regional level, an internal quality control for coherence will make up the first stage of this treatment. Then they will be integrated into the monitoring and evaluation software available to complete the treatment. Monitoring and evaluation reports are produced quarterly by the RCUs following a specific framework. The NPCU will conduct regular random checks then consolidates the information into a national report. The internal assessment Investigation results are intended to improve the quality of information contained in the result of the project carried out in the field. At mid-term, partial studies of impact on beneficiaries and satisfaction surveys will be carried out during the World Bank-Government joint missions. The project will support the integration of nutrition considerations in impact evaluation studies as well as the collection and dissemination of information on local feeding practices and their relation to local food systems, as well as good practices to improve nutrition through agricultural interventions. Annual technical and financial audits will be carried out in order to appreciate the project disbursement rate and independent assessment of economic, social and environmental impacts will be carried out at the end of the project. An integrated information management system will completed the M&E framework. It will include the establishment of a: (a) geographical information system (GIS); (b) computerized system for monitoring indicators and (c) suitable archive system. Moreover, the issue of ownership of the system by the players is the key for a proper implementation of the project activities. Capacities of various participating stakeholders in M&E will be enhanced.
43. Communication and Knowledge Production and Sharing. The project will support the development of a global communication strategy with the participation of all relevant stakeholders that will be involved in the Project implementation. The strategy will include the development and broadcast of various communication and cutting edge knowledge learning and sharing activities using different types of media (local newspapers, radio, television, web-based internet and social media). The Project information will be disseminate to the large audience (smallholders, private sector, development partners, local councils and the general public). The Project will also support
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the capitalization of best practices and their dissemination with senior government policy makers and program planners in Cameroon, as well as in regional and international forums. A major consideration will be to lay a foundation for the long term sustainability of the communication services through the development and promotion of an electronic livestock information portal. This information technology communication portal will include (a) an e-versions of the project knowledge products and magazine and (b) an e-library. The Project will also host an e-version of smallholders’ livestock product promotion and marketing which focus on strategically positioning the Project and improving brand visibility and reputation across all components.
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Annex 3: Implementation Arrangements
CAMEROON: Livestock Development Project Project Institutional and Implementation Arrangements
1. Project Oversight. The Borrower is represented by the Ministry of Economy, Planning and Regional Development (MINEPAT). The CAA will manage the DA and will submit withdrawal applications to IDA on behalf of the Project. Overall responsibility for Project implementation will be delegated to the MINEPIA. Implementation is envisaged to take place over six years in the five agro-ecological zones. The project duration is set at 6 years to allow a realistic timeframe for implementation, drawing from earlier experiences with similar projects. It is not only particularly important to allocate sufficient time for the development of sustained Productive Alliances under Component 3, but also for the activities envisaged under the other components to ensure achievement of the outcomes (i.e. improving service delivery, capacity building, development of productive agro-pastoral systems, etc.).
2. The Project implementation mechanism will comprise: (i) a Project Steering Committee (PSC); (ii) an NPCU based in Yaoundé and three RCUs covering the five agro-ecological zones; and (iii) Ten (10) Regional Pre-Selection Committees (RPSCs) responsible for detailed screening of business plans within the project zones covered by RCUs. The three RCUs will respectively covered the regions of: (i) Far North/North/Adamaoua; (ii) Center/South/East and (iii) Littoral/South-West/West/North-West. RCUs will involve Regional Focal Points of the MINEPIA, and the Ministries in charge of Environment (MINEPDED) and Social Affairs (MINAS) in facilitating the implementation of environmental and social activities of the Project. Fifty eight divisional focal points from decentralized MINEPIA services will work alongside technical service providers, to provide outreach organizational development and technical advisory services to beneficiary communes, POs and livestock entrepreneurs. Specific implementation arrangements are developed for the various components/subcomponents under the overall oversight of the NPCU. The implementation arrangements are described in figure 3.1, 3.2 and in more detail in the PIM.
3. The project coordination team will be anchored at MINEPIA. Both the NPCU and the RCUs will be staffed with highly qualified and experienced personnel- who will be selected through competitive processes organized and managed by the MINEPIA and agreeable to IDA. Specific attention will be given to ensure that PCU, Regional coordination units, steering committee and RSPC include both men and women.
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Figure 3.1: LDP institutional and implementation arrangements
1.
Roles and Responsibilities.
3. At the National Level: The PSC will be established by the MINEPIA. It will ensure the general supervision of the project performance and strategic policy guidance and will mainly be responsible for: (a) approving the Project’s Annual Work Plan and Budget (AWPB) prepared by the NPCU with inputs form project beneficiaries, implementation stakeholders and partners; (b) overseeing overall performance of the Project and providing policy guidance; (c) suggesting necessary adjustments based on M&E results, with the technical support of a Technical Monitoring Committee (“Groupe de Suivi Technique”) and (d) approving, as needed, the subsequent modification of the project implementation. The PSC composition will be detailed in the PIM and will comprise representatives of : (i) Ministries in charge of Livestock, Economy, Agriculture, Trade, Forest and Wildlife, Small and Medium Enterprises, Scientific Research, Environment,
MINEPIA Ministry of Livestock, Fishery and
Animal Industries
General Secretary
Project steering
committee
Technical monitoring committee
DDPIA Directorate of
Production Development and
DVS Directorate of
Veterinary Services
DPAIE Directorate of Pasturelands, Livestock Infrastructure and
Feed
Implementation stakeholders: Communes, POs, NGO, local service
providers, etc.
Regional Delegations of MINEPIA
Divisional Delegations of MINEPIA
Veterinary and Livestock Stations
National Project Coordination unit
3 Regional Coordination units
10 Regional pre selection committees
58 divisional focal points
Hierarchical link Functional Link
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Women and Social Welfare and Professional Training; (ii) The CAA; (iii) POs’ national platforms (CNOPCAM, PLANOPAC); (iv) and Representatives from the private sector (ANENCAM, APECAM, GICAM). The Technical Monitoring Committee (TMC) will be created by MINEPIA, comprising senior staff from (i) MINEPIA, institutions including DEPCS, DDPIA, DSV, DAG, DPAIE, LANAVET, MSEG; (ii) MINEPAT; (iii) Related producers umbrella organizations; (iv) Private sector including ONVC, IF, CAPEF, Communes’ representatives (ACVUC). On behalf of the PSC, the TMC will monitor Project activities through quarterly meetings with the NPCU and report to the PSC.
4. The Minister or his representative will chair the Project Steering Committee (PSC) and will supervise activities of the NPCU, while the Directorate of Projects and Cooperation (DEPCS) will chair the Technical Monitoring Committee (TMC) of the Project. The PSC is expected to meet twice a year to review the bi-annual reports that will be prepared by the NPCU.
5. The NPCU will be vested with responsibility for all fiduciary matters and implementation support for all Project activities by: (i) managing the project, including financial management, procurement in accordance with World Bank guidelines and procedures, and M&E, (ii) producing progress reports on the projects, and (iii) ensuring national and regional communication related to the project activities. The technical directorates of MINEPIA that will be fully involved in implementing project activities include DVS, DDPIA, DPAIE and DEPCS. The institutional and implementation arrangements are aligned with MINEPIA organization framework, which will help ensure sustainability and contribute to building capacity..
6. At the regional level, RCU will involve MINEPIA regional services and other relevant public services including MINEPAT, MINEPDEP and MINAS in the implementation of components 1, 2 and 3 of the project in line with agreements signed between NPCU and relevant central bodies of key ministries participating in the project. MINEPIA divisional services and veterinary stations located at sub-division level will be involved in the implementation at the decentralized level. The project will provide support for the operation of both PSC and TMC, as well as for the field missions of regional, divisional and sub-divisional MINEPIA services.
7. RPSCs established in each Region will undertake the screening of SPs/BPs from targeted communities and producers’ organizations. They will also handle the screening of community investments. Each RPSC will be composed of six (06) members including the Regional Delegate of MINEPIA (Chairman), two representatives from related producer umbrella organizations (voting members), the Regional Coordinator of PRODEL (Rapporteur, no voting rights), a representative of the buyers (a voting member), and one representative of the FIs (a voting member).
8. At the divisional level, the Project will build on an existing outreach advisory network composed of 58 divisional focal points from decentralized MINEPIA services, alongside technical service providers. Under the general supervision of RCUs, the Project will thus enhance their technical and organizational development capacities through on-the-job training.
9. Complementarity with other interventions and institutional alignment. The LDP will pursue maximum complementarity and adapt proven approaches developed in similar projects, particularly :
(i) World Bank projects: PNDP, Community development program support project and AIMDP, Agriculture investment and market development project
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(ii) AFD projects : ASGIRAP, ‘Projet d’appui à la sécurisation et à la gestion intégrée des ressources agro-pastorales’, ACEFA, ‘Programme d’amélioration de la compétitivité des exploitations agricoles familiales agropastorales’, AMO, ‘Programme d’Appui à la maîtrise d’ouvrage des administrations du secteur rural’, AFOP, ‘Programme d’appui à la rénovation et au développement de la formation professionnelle dans les secteurs de l’agriculture, de l’élevage et de la pêche (AFOP)’
(iii) IFAD projects: PAEJ, Programme d’Appui à l’Entreprenariat Jeunes, PADMIR ‘Projet d’appui au développement de la microfinance rurale’
10. Strategic partnerships: The project will leverage supports from strategic partners based on their comparative advantages, including leading international organizations such as ILRI, IITA, OIE, international veterinary training schools, and local research institutions such as IRAD for implementing activities under the project. 11. MINEPIA is preparing a comprehensive PIM, which will detail the organizational and technical procedures that will govern implementation. The PIM will include a project implementation plan, administrative, procurement, financial and accounting, and M&E procedures, and will be prepared and finalized before effectiveness. The manual will spell out the mandates, responsibilities, governance structure, and relationship between each implementing unit. The PIM will take into account an assessment of the capacity of the institutions to be involved and their coordination mechanisms. The partnership agreements between the government and the main implementing partners will also be spelled out. The manual will clarify the Terms of Reference (ToRs) of each structure that will be involved in project implementation. Semi-annual progress review meetings will be organized with all relevant stakeholders, given the need for close monitoring. Detailed institutional arrangements, including staffing details of NPCU and RCUs, are summarized in Figure 3.2.
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Figure 3.2: Description of institutional and implementation arrangements for LDP
Project Steering Committee
(PSC)
Exchange and guidance body Chairman: Minister of MINEPIA Role: General supervision of the project performance and political orientation chaired by the minister of livestock, fishery and animal industries or his representative.
Members: (i) Ministries in charge of livestock, economy, finance, agriculture, Trade, forest and wildlife, environment, scientific research, women and social welfare and professional training, Small and medium enterprises (ii) Farmers’ umbrella organizations including CNOPCAM & PLANOPAC, (iii) Representative from private sector (ANENCAM, APECAM, GICAM), (iv) Representative of accounts management: CAA, (v) Representative of communes ACVUC). Responsibilities: Approval of annual work and budget plan; Supervision of the global performance of the project; supervision of the project modification based on the M&E results; Approval of the subsequent modification of the implementation.
Technical Monitoring Committee
(TMC)
Implementation monitoring body Chairman: DEPCS Role : Monitoring of project activities implementation, facilitation of exchanges and coordination between stakeholders
Members: Representatives from (i) MINEPIA, institutions including DEPCS, DDPIA, DSV, DAG, DPAIE, LANAVET, MSEG; (ii) MINEPAT; (iii) Related producers umbrella organizations; (iv) Private sector including ONVC, IF, CAPEF, Communes’ representatives (ACVUC)
National Project
Coordination Unit
(NPCU)
In charge of day-to-day management of the implementation of the PRODEL activities
Role : Coordination of resource mobilization, national and regional programming, M&E services, capacity development, technical assistance, data generation, knowledge management and communication
Staff : a national coordinator (CN), a national training officer, a specialist in animal health, a specialist in production development and quality management, a specialist in sustainable integrated landscape management, a specialist in value chain and economic partnership development, a specialist in monitoring & evaluation, an internal auditor, a specialist in communication and public relations, a specialist in environmental and social safeguards, an administrative and financial management expert, a senior procurement specialist, a junior procurement specialist, a national accountant, an administrative assistant, a junior accountant, a project assistant, support staff six drivers, one secretary
Implementation Stakeholders
Component 1 Improvement of livestock services access
and delivery
Key implementation stakeholder : DVS, DDPIA, DPAIE Other partners : ONVC, RESCAM, LANAVET, livestock stations, producers’ organizations, pastoral communities, and private service providers, ILRI, OIE To be operationalized by agreements to be signed with NPCU
Implementation Stakeholders
Component 2: Improvement of pastoral productivity, access to markets and resilience
of pastoral communities
Key implementation stakeholders : DPAIE, Communes Other partners : MSEG, local services providers, pastoral communities, SNV, ASGIRAP, ACEFA, Consultants, WB social safety net project, MINEPDEP and MINAS, ILRI, ICRAF, IRAD To be operationalized by agreements to be signed with NPCU
Implementation Stakeholders
Component 3: Support to livestock value chains development
Key implementation stakeholder : DDPIA Other partners : RPSC, consultants, financial institutions, development partners, agro-business enterprises and buyers, livestock farmer organizations, livestock enterprises and young graduate private operators, MINEPDEP and MINAS To be operationalized by agreements to be signed with NPCU
12. Financing mechanisms. The potential participating financial institutions (PFIs) including commercial banks, leasing companies and microfinance institutions showed interest and agreed in
Implementation Arrangements in Targeted Regions Three (3) Regional Coordination Units (RCU) out of which (i) FN/NO/AD regions ; (ii) LT/SW/W/NW regions and (iii) CE/S/E regions. RCU staff is comprised of :a regional coordinator, a senior animal health specialist, a senior animal production specialist , a senior integrated landscape management specialist (one for FN/NO/AD and one for CE/S/E), a senior value chain & economic partnership development specialist, a senior M&E, planning & communication Specialist, an environmental and social safeguard expert, a regional accountant, support staff (One secretary & three drivers)
Outreach advisory network at the division level: 58 divisional focal points from decentralized MINEPIA services and technical service providers They will provide technical and organizational advisory services to beneficiary communes, PO and Livestock entrepreneurs.
Ten (10) Regional Pre-Selection Committees (RPSC): in charge of the pre-selection of idea of business plans for potential producers’ organizations. Members: (i) Regional delegate of MINEPIA (Chairman); (ii) Regional Lead of Animal Production of MINEPIA; (iii) Two (2) regional representatives from related producers’ umbrella organizations (POs); (iv) PRODEL regional coordinator (Rapporteur); (v) One representative from buyers; and (vi) one representative from financial institutions.
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principle to cooperate with the Project to co-finance the SPs/BPs in the targeted value chains. However, these preliminary agreements need to be formalized in order to lay down the specific principles and terms and conditions of partnership and commitment of these PFIs. Such principles, terms and conditions should be further discussed with the potential PFIs. The main areas to clarify during the design process are related to: (i) eligible items to medium- and short-term credit; (ii) PFIs’ requirements regarding the content, presentation and estimation modalities of business plans, particularly concerning the cash flow and profitability analyses; (iii) procedures for managing and disbursing the matching grant that are acceptable to both PFIs, the Project and recipients ; (iv) arrangements for mobilizing the SP initiators’ own resources; and (v) risk issues including collateral requirements.
13. The potential PFIs that have negotiated a Memorandum of Understanding with MIMAPIA to participate in the project include Afriland First Bank, BICEC, Advans, Crédit du Sahel, ACEP and leasing companies under the Camlease umbrella (Africa Leasing Company). Other commercial banks and MFI networks might join. Formal agreements with selected PFIs should be signed to solidify their commitment, before the start of project activities.
14. PFIs would be selected along the following criteria: (i) interest and experience in agricultural, livestock and value chain financing; (ii) existing market development strategy to increase agricultural (in a wide sense) lending; (iii) loan portfolio diversity, volume and quality; (iv) compliance with BEAC regulation and norms; (v) availability of own financial resources to extend medium- and short-term credit to co-finance SPs/BPs at adapted and acceptable conditions; and (vi) willingness to share risk. These criteria will be refined in the PIM.
15. Implementation of the agreements with PFIs will be regularly monitored and discussed at the CST meetings and during the participatory planning and evaluation workshops with stakeholders organized annually by the Project, in order to identify constraints, successes and propose improvements.
Financial Management, Disbursements and Procurement
Country issues
16. After the adoption of the new PFM Act (Nouveau Régime Financier de l’Etat) in 2007 the Government of Cameroon (GoC) introduced in 2013 the program budgeting approach in all line ministries. While the budget has been approved on a programmatic basis since 2013, the intended benefits of the reforms have yet to materialize. Budget preparation and adoption processes have transitioned to program budgeting. However, the core problems identified in 2007 remain unsolved. The execution of line ministries’ capital budget remains low and the performance of public services has not improved. Traditional annual line item budgeting persists in budget execution, meaning that the benefit and flexibility of multi-year program-budgeting are not leveraged yet. Program performance indicators are still essentially activity and output-based indicators, with no real foray into outcomes. Program Managers in line ministries are not sufficiently prepared to handle their new responsibilities and they lack several tools to carry out their duties. Finally, financial information systems have not undergone the necessary changes to ensure consistency and comprehensiveness of financial information among the key players along the expenditure chain. This is essential in order to match financial and performance information and allow for an effective and efficient management of public resources.
17. To support the ongoing PFM reform process, World Bank is preparing a PFM project aiming at (i) enhancing transparency and efficiency in public financial management, and (ii)
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improving public procurement performance as to achieve efficiency, transparency, competition and better value of money. The implementation of this project will sustain the results already achieved and contribute to the improvement of the overall PFM environment in Cameroon.
18. Finally, the Bank Institutional Development Fund (IDF) has supported GoC to elaborate a standard FM manual and an integrated information system for investment project aiming at ensuring a better integration of investment project FM system to country system. The information system is contributing to improved synergy between project’s accounting system and Government information system by allowing automatized transmission and integration of project’s financial information to the Government system, and thus enhance transparency over donors funded project’s funds management.
19. The detailed financial management arrangements are described below.
Financial Management Risk Assessment and Mitigation The table below summarizes the inherent and control risks and mitigation measures proposed. Table 3.1.: FM Risk Ratings and Mitigation measures
Risk Risk Rating Risk Mitigation Measure Residual
Risk Rating Inherent Risks: S SGovernance is widely acknowledged to be weak and may impact negatively the achievement of development objectives of programs and projects implemented.
H
Donors community actions are oriented toward PFM reform agenda in support to the Government commitment to tackle the cross cutting issue of Governance in the public resources management. Some donors foresee using the budget support instrument that could help accelerating the pace of the PFM and governance agenda.
H
Entity: Lack of timely set up of the implementation units especially at regional level will put the project readiness for implementation at risk. The multiplicity of implementing entities (NPCU, RCU, OP, SP holders, FI etc.) could lead to significant challenges to the project implementation and coordination
H
The NPCU and RCU have been set up during the preparation phase financed through a project preparation advance. The project procedures manual will set the coordination arrangements regarding main roles and responsibilities of different implementing entities and stakeholders. A national steering committee has been set up for project implementation oversight and strategic guidance.
S
Project: The high complexity level of the project that involves many stakeholders and implementing entities, some of them having weak capacity, put a significant
H
The implementation manual will provide clear guidance regarding the coordination arrangements, roles and responsibilities of the different implementing entities and stakeholders.
S
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Risk Risk Rating Risk Mitigation Measure Residual
Risk Rating challenge on coordination and implementation that could be at risk for the attainment of the project development objective.
In addition subproject and matching grant procedures manuals will be elaborated that will include procedures for selection as well as control and management of the sub projects. The procedures will be disseminated (including trainings) at all levels of the project implementation (national, regional communities, OPs).
Control Risks: H SStaffing: The implementation units (PCU & RCU) to be established might not be filled with appropriate staffing familiar with World bank FM procedures
S
The implementing units will be staffed with consultants recruited competitively based on ToR and procurement processes acceptable to the Bank. Trainings will be provided to the accounting team during implementation either by Bank team or by external training providers.
S
Budgeting: Delay might occur on the preparation of a realistic consolidated budget information regarding subprojects selection and financing might not be available on time.
S
The budget process will be clarified in the Financial and Administrative Procedures with a clear description of preparation, approval, authorization and monitoring processes in addition to the timeline for each process. The selection process of subprojects will be planned earlier enough to ensure consolidated budget information could be filled with related financing information (number of subprojects selected and the financing amount).
M
Accounting: Delays in the treatment of financial information and in submissions of Financial Statements (interim and annual) as the coordination units are not yet set up, adequately staffed and equipped with a sound accounting system
S
The FM team both at national and regional levels will be recruited on a competitive basis under ToR prior reviewed and non-objected by the Bank. The budgeting and accounting module of the SIGED will be customized and installed under a multi sites version that will facilitate not only the record of the projects transactions at all levels but also the consolidation of the data for reporting purposes at national level. Appropriate trainings regarding parameterization, record keeping, data
S
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Risk Risk Rating Risk Mitigation Measure Residual
Risk Rating consolidation and reporting will be provided by the software supplier to all accounting staff.
Internal Control and audit: The decentralized nature of the project increase its level of complexity and the existing internal control system that is mostly at national level might not fit the project activities an regional scope Subprojects selection might not be properly handle (convenience selection) to favor non deserving OPs
H
The PIM will help clarify roles and responsibilities to properly frame the internal control system. In addition an internal auditor will be recruited to conduct ex-post reviews of the project transactions at national and regional levels using a risk based approach. The participation of the communities in the selection process will be required and a grievance mechanism will be set up and implemented to ensure glitches in the selection processes are reported and addressed. In addition The disbursement under component 2 and 3 will be subjected to dissemination of the subprojects handling procedures. Financial and technical capacity and relevance of the Business plan will be included in subproject selection criteria.
S
Funds Flow: Many financing sources for subprojects and matching grant may lead to confusion in the use of funds and difficulties in the reporting of the use of funds Subprojects holders contribution to the financing could be fake: Risk that related amount deposited is removed after funding from others sources is secured.
H
Segregated accounts will be opened for each financing source. The subproject holders will open an account into which the funds will be transferred (commencing with their own contribution) and subsequent withdrawals will be made under the joint signature of various actors including the project regional coordinator. In addition building on the PIDMA scheme, funds from the projects will be transferred gradually in proportion of the subprojects holder’s contribution.
M
Reporting and Monitoring: Delays on the submission of agreed IFRs and annual project
S The reporting scheme will be clearly described in the procedures manual to ensure all financial activities at regional
S
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Risk Risk Rating Risk Mitigation Measure Residual
Risk Rating financial statements as the accounting system is not yet set up and national coordination may experience delay in receiving regional coordination reporting data
level are captured on time and accurately at the central level. The budgeting and accounting module of SIGED will be customized and deployed under a multi-sites version and be customized to fit the project accounting and reporting needs thus ensuring timely recording of financial information as well as timely production of quarterly and annual financial statements at the project.
Auditing: Inadequate institutional arrangements in place for external audit might delay the submission of external audit reports
S
An independent external audit firms will be recruited under ToRs acceptable to IDA. It will be considered involving the chamber of account (SAI) in the recruitment process.
S
Governance-F&C Lack of a functional accountability mechanism in place to help capture all deviation in the governance scheme of the projects especially for selection of beneficiaries of the project funds at local level
A complaint handling mechanism will be set up and operationalized to proper manage governance cases in the selection and implementation of SPs Training will be provided to the involved parties for its adequate handling.
Overall Risk: H S
H – High S – Substantial M – Modest L – Low The overall residual FM risk is considered as substantial. The following actions need to be taken in order to enhance the financial management arrangements for the Project: Major weaknesses and FM Action Plan to reinforce the control environment
Table 3.2.: FM Action Plan Area of Weaknesses
Action Responsible party
Deadline
Staffing 1- Recruit a Financial Management Officer MINEPIA Before effectiveness
2- Recruit an Accountant for the NPCU
NPCU
Not later than two (2) months after effectiveness
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Area of Weaknesses
Action Responsible party
Deadline
3- Recruit there (3) regional accountants NPCU Not later than two (2) months after effectiveness
Internal Controls
4- Customized the standardized project FM procedures to reflect the project specifics as part of the PIM
MINEPIA Not later than two (2) months after effectiveness
5- Elaborate a simplified subprojects procedures manual and disseminate towards subproject holders (communities)
MINEPIA Before disbursement is made under component 2
6- Elaborate a simplified matching grant procedures manual and disseminate towards PO’s subproject holders
MINEPIA Before disbursement is made under component 3
External audit
7- Recruit an internal auditor NPCU Within three (3) months after effectiveness
Accounting & Reporting
8- Customize and deploy the budgeting and accounting module of SIGED to fit the project accounting and reporting needs.
NPCU Within three (3) months after effectiveness
External audit
9- Recruit an external auditor NPCU Within 5 months of effectiveness
Financial Management Arrangements
20. In line with the use of the country national system, the project FM arrangement will rely on the existing country FM arrangements put in place to manage donor-funded projects. These arrangements are currently centered on two main institutions, the CAA equipped with dedicated tools developed by the Bank Institutional Development Fund (IDF) and the Ministry of Public Procurement in charge of ex ante control of all suppliers invoices associated with a contract before any payment by CAA.
Staffing & trainings
21. For the proper management of the project the implementing units will be staffed with an FM officer and an accountant at the national coordination unit and three accountants for the three regional coordination units. The team will benefit from trainings led by the Bank FM team or by external trainers as and when needed.
Budgeting:
22. A standardized budgeting process (elaboration, implementation and monitoring) is clearly described in the standardized Financial Management Manual of Procedures developed by CAA with Bank IDF. In order to take into account the project budgeting need, the budgeting section of the manual will be tailored to the project specificities including data collection for subprojects. The annual work program and budgets will be prepared by the NPCU in coordination with all the implementing entities and submitted to the Steering Committee for adoption before the beginning of the year. The Steering Committee would also approve changes in the budget and revised action plans. The annual budget would be managed through the accounting software. The NPCU will ensure such budget is submitted to the steering committee for adoption and to the Bank approval before it can be executed. Further, the budget execution will be monitored and analyzed
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and documented in the financial reports. Any deviation from the initial planned activity will be reported and documented. Execution of activity not included in the Budget must require the Bank prior non objection.
Accounting:
23. Project accounting, policies and procedures applicable to the project will be documented in the FM section of the manual. The MINEPIA will ensure the accounting team to be recruited is familiar with handling accounting and reporting activities consistent with Bank procedures. The budget and accounting modules of the integrated financial management system for donors funded project (SIGED) will be deployed under a multi sites version both at national and regional levels to handle accounting and reporting needs under the project. Furthermore, when the current CAA reporting systems, developed with the software provider Tomate, permits, a dedicated window will be opened for the project’s users by CAA on the module of the accounting and reporting of said CAA information system. Thanks to the interface that is being developed between the SIGED and the existing systems in the Directorate of Public Treasury (PATRIOT) and the Directorate of Investment Projects (PROBMIS), the project transactions would be easily incorporated into the national financial statements.
Internal control and internal auditing
24. Internal Control Systems: The PIM including internal controls, budget process, assets safeguards, and roles and responsibilities of all the stakeholders will be developed. In that regards the standardized Financial Management Manual of Procedures developed by CAA with Bank IDF support will be customized as part of the PIM to reflect the project implementation specificities. The financial manager will be responsible for maintaining all necessary controls to ensure: (i) that the project funds are used only for the intended purposes in an efficient and economical way; (ii) the preparation of accurate, reliable, and timely periodic financial reports; and (iii) that the project’s assets are adequately safeguarded. These measures are reinforced by the government’s internal control arrangements, such as the prior visa payment by the Ministry of Public Contracts that will apply to the project’s invoices and the control by CAA over withdrawal applications and payments requests.
25. Specifics communities SP and matching grant manuals will be elaborated too and will detail among other (i) the selection and financing criteria, (ii) the management, accounting and reporting tools, (iii) the control and accountability mechanisms. The dissemination of said procedures and training of beneficiaries will be set as disbursement conditions under component 2 and 3. Continuous supervision of the activities at regional level will be undertaken on a regular basis by the RCU and the internal auditor including capacity building of SPs holders when as and as needed.
26. Internal Auditing: An internal auditor will be recruited. Internal audit field missions (including communities SP and matching grant activities) will be conducted on a risk-based approach that will include ensuring that SPs are selected according to the SP manuals provision, the SPs implementation requirements and activities are compliant with their contracts, SPs contribution are mobilized, maintained and used for the purpose of the SPs activities, payments are effective and made to the correct beneficiaries and transactions are processed in a timely manner and recorded correctly.
Financial Reporting
27. The Project transactions will be recorded at national and regional level and consolidated by the NPCU FM team. The NPCU will thus produce quarterly consolidated unaudited
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Interim Financial Reports (IFRs) during project implementation encompassing activities for all components and all regions. The data from the regional units shall be furnished to the national coordination unit earlier enough to ensure on time consolidation of the financial data. The IFRs are to be produced on a quarterly basis and submitted to the Bank within 45 days after the end of the calendar quarterly period. The IFR will present the financial statements (sources and used of funds and use of funds per component/categories/activities). The reporting procedures and content will be described in the project procedures manual. The reporting format would comprise (i) a statement of funds received and used which included cash payment and cash balances; (ii) detailed used of funds including amount and beneficiaries; and (iii) a statement of commitment.
28. The NPCU will also produce the project’s Annual Financial Statements and these statements will comply with OHADA and World Bank requirements. They will be comprised of:
Statement of Sources and Uses of Funds which includes all cash receipts, cash payments and cash balances
Statement of Commitments Accounting Policies Adopted and Explanatory Notes A Management Assertion that project funds have been expended for the intended
purposes as specified in the relevant financing agreements.
Auditing
29. The Financing Agreement will require the submission of the project Audited Financial Statements to IDA within six months after the end of each fiscal year. The audit reports should reflect all the activities of the project. For the fulfillment of that requirement an independent external auditors with qualification and experience satisfactory to the World Bank will be recruited to conduct annual audits of the project financial statement (PFS). Appropriate terms of reference for the external auditor will therefore be provided by the project team. In addition to the opinion on the financial statements, the external auditors will prepare a Management Letter giving observations and comments and providing recommendations for improvements in accounting records, systems, controls and compliance with financial covenants in the Financial Agreement. The report of the auditor will include a specific section regarding SPs process and management (selection and implementation). If their availability and capacity permit, it would be considered involving the chamber of account (Supreme Audit Institution) in the auditor recruitment process
Funds Flow and Disbursements arrangements
30. The Funds flow will rely on the government’s banking arrangements through CAA. In this regard, CAA’s managing director will continue to act as public accountant which includes the signing authorization on all payment means using the automated payments module of CAA information system for donor financing.
31. Designated account. A Designated Account (DA) will be opened and managed by the CAA and three transactions accounts (TA) will be opened for all three RCU. Disbursements will be made to the DA held in FCFA from which transfers will be made to the operational accounts at RCU level and subprojects accounts. Contractors suppliers and services providers will be paid either from the DA or from the TAs and subprojects accounts
32. Disbursement methods: The following disbursement methods may be used under the project: advance, direct payment, reimbursement, and special commitment as specified in the Disbursement Letter (DL) and in accordance with the World Bank Disbursement Guidelines for
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Projects. The disbursement will be transactions based and the DA ceiling will be reflected in the DL. Following effectiveness, the NPCU will submit an initial advance request that will be made into the Designated Account and subsequent disbursements will be made on a monthly basis. Later, the option for the project to disburse against the submission of IFRs would be considered based on the overall FM performance of the project.
33. All replenishments or reimbursement applications will be fully documented as specified in the DL. Documentation will be retained at the NPCU and/or RCU for review by Bank staff members and external auditors.
34. The funds flows arrangements are described below.
Figure 3.4.: Fund flows for IDA
FM Implementation Support Plan
35. The objective of the implementation support plan is to ensure a satisfactory financial management system is maintained throughout the project’s life. Based on the outcome of the FM risk assessment, the following implementation support plan is proposed:
IDA
DA (FCFA) Commercial bank
(CAA)
Direct payment
Flow of documents (invoices, expenditures justification, DLI report, etc.)
Flow of funds
Contractors, Suppliers and Services providers
Sub Accounts (FCFA)
Sub projects
Operational Accounts (FCFA)
RCU
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FM Activity Frequency Desk reviews Interim financial reports review Quarterly Internal Audit report review of the program Quarterly/ Risk based approach basis External Audit report review of the program Annually Review of other relevant information such as interim internal control systems reports.
Continuous as they become available
Review of overall operation of the FM system Bi-annual
Monitoring of actions taken on issues highlighted in audit reports, auditors’ management letters, internal audit and other reports
As needed
Transaction reviews (if needed) As needed FM training sessions During implementation and as and when
needed.
36. Financial Covenants
a) A financial management system including records, accounts and preparation of related financial statements shall be maintained in accordance with accounting standards acceptable to the Bank.
b) The Borrower shall prepare and furnish to the Association not later than 45 days after the end of each calendar quarter, interim un-audited financial reports for the Project, in form and substance satisfactory to the Association
c) The Financial Statements will be audited in accordance with international auditing standards. The Audited Financial Statements for each period shall be furnished to the Association not later than six (6) months after the end of the project fiscal year. The Borrower shall therefore recruit an external auditor not later than six (6) months of effectiveness
d) The Borrower will be compliant with all the rules and procedures required for withdrawals from the Designated Accounts of the project.
Conclusion of the assessment 37. Based on the Bank’s assessment, the FM residual risk for the Project is deemed Substantial with regards to the complexity of the project that will include a decentralized level of implementation and subgrants management at regional level, many stakeholders in addition to coordination units and associated FM team that are yet to be set up. The proposed FM arrangement is considered satisfactory in fulfillment of the requirements under Bank OP 10.00, and therefore is adequate to provide, with reasonable assurance, accurate and timely information on the status of the project as required by IDA. The implementing entity will ensure that the Bank’s “Guidelines on Preventing and Combating Fraud and Corruption in Projects Finances by IBRD Loans and IDA Credits and Grants”, dated October 15, 2016, and revised in January 2011, are followed under the project.
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Procurement
Guidelines
38. Procurement. The Project will be carried out in accordance with the World Bank “Guidelines: Procurement of Goods, Works, and Non-Consulting Services under International Bank for Reconstruction and Development (IBRD) Loans and IDA Credits & Grants by World Bank Borrowers” dated January, 2011, revised July 2014; and “Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credit & Grants by World Bank Borrowers”, dated January, 2011, revised July 2014, and the provisions stipulated in the Legal Agreement. Procurement (works, goods and non-consulting services) or Consultant Selection methods, prequalification, estimated costs, prior review requirements, and time-frame are agreed in the Procurement Plan. The Procurement Plan will be updated at least annually or as required to reflect the actual project implementation. The Bank’s Standard Bidding Documents (SBD) or Cameroon National Standard Bidding Documents satisfactory to the IBRD will be used. To the extent practicable the Bank’s Standard Bidding Documents for works, goods and Non-Consulting Services and Standard Request for Proposals, as well as all standard evaluation forms, will be used throughout project implementation.
39. Advertising. The Borrower is required to prepare and submit to the Bank a General Procurement Notice (GPN). The Bank will arrange for its publication in UN Development Business online (UNDB online) and on the Bank’s external website. The General Procurement Notice shall contain information concerning the Borrower, amount and purpose of the credit, scope of procurement reflecting the Procurement Plan, and the name, telephone (or fax) number, and address (es) of the Borrower’s agency (ies) responsible for procurement, and the address of a widely used electronic portal with free national and international access or website where the subsequent Specific Procurement Notices will be posted. If known, the scheduled date for availability of prequalification or bidding documents should be indicated. The related prequalification or bidding documents, as the case may be, shall not be released to the public earlier than the date of publication of the General Procurement Notice.
40. In the case of ICB or LIB, invitations to prequalify or to bid, as the case may be, shall be advertised as Specific Procurement Notices in at least one newspaper of national circulation in the Borrower’s country, or in the official gazette, or on a widely used website or electronic portal with free national and international access, in English, French, or Spanish, or at the option of the Borrower, in a national language. Such invitations shall also be published in UNDB online. Notification shall be given insufficient time to enable prospective bidders to obtain prequalification or bidding documents and prepare and submit their responses. The Bank will arrange the simultaneous publication of all Specific Procurement Notices prepared and submitted by the Borrowers on the Bank’s external website.
41. In the case of National Competitive Bidding (NCB), the complete text of advertisement shall be published in a national newspaper of wide circulation in the National Language, or in the official gazette, provided that it is of wide circulation, or on a widely used website or electronic portal with free national and international access. The Borrower may publish a shorter version of the advertisement text, including the minimum relevant information, in the national press provided that the full text is simultaneously published in the official gazette or on a widely used website or electronic portal with free national and international access. Notification shall be given to prospective bidders in sufficient time to enable them to obtain relevant documents.
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42. To obtain expressions of interest (EOIs), the Borrower shall include a list of expected consulting assignments in the General Procurement Notice, and shall advertise a request for expressions of interest (REOI) for each contract for consulting firms in the national gazette, provided that it is of wide circulation, or in at least one newspaper, or technical or financial magazine, of national circulation in the Borrower’s country, or in a widely used electronic portal with free national and international access in English, French, or Spanish. In addition, assignments expected to cost more than US$300,000 shall be advertised in UNDB online. Borrowers may also in such cases advertise REOIs in an international newspaper or a technical or financial magazine. The information requested shall be the minimum required to make a judgment on the firm’s suitability and not be so complex as to discourage consultants from expressing interest. REOIs shall at a minimum include the following information applicable to the assignment: required qualifications and experience of the firm, but not individual experts’ bio data; short-listing criteria; and conflict of interest provisions. No less than 14 (fourteen) days from date of posting on UNDB online shall be provided for responses, before preparation of the short list. The late submission of a response to an REOI shall not be a cause for its rejection unless the Borrower has already prepared a short list, based on received EOIs, that meets the relevant qualifications. The Bank will arrange the simultaneous publication of all REOIs prepared and submitted by the Borrowers on the Bank’s external website. Contract awards will also be published in UNDB, in accordance with the Bank’s Procurement Guidelines (para. 2.60) and Consultants Guidelines (para. 2.31).
43. Requirements for National Competitive Bidding. Works, Goods and non-consulting services contracts will use NCB procurement methods in accordance with national procedures using SBDs acceptable to World Bank and subject to the additional requirements:
In accordance with paragraph 1.16 (e) of the Procurement Guidelines, each bidding document and contract financed out of the proceeds of the financing shall provide that: (i) the bidders, suppliers, contractors and their subcontractors, agents, personnel, consultants, service providers, or suppliers shall permit the World Bank as Supervising Entity, at its request, to inspect all accounts, records, and other documents relating to the submission of bids and contract performance, and to have said accounts and records audited by auditors appointed by the World Bank/Supervising Entity; and (ii) the deliberate and material violation of such provision may amount to an obstructive practice as defined in paragraph 1.16 (a) (v).
Invitations to bid shall be advertised in national newspapers with wide circulation. The bid evaluation, qualification of bidders, and contract award criteria shall be clearly
indicated in the bidding documents. Bidders shall be given adequate response time (at least four weeks) to submit bids from
the date of the invitation to bid or the date of availability of bidding documents, whichever is later.
Eligible bidders, including foreign bidders, shall be allowed to participate. No domestic preference shall be given to domestic contractors or to domestically
process manufacturing goods; and World Bank with a national firm shall not be a condition for participation in a bidding process.
Bids are awarded to the most substantially responsive and the lowest evaluated bidder proven this bidder is qualified. No scoring system shall be allowed for the evaluation of bids and no “blanket” limitation to the number of lots that can be awarded to a bidder shall apply.
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Qualification criteria shall only concern the bidder’s capability and resources to perform the contract, taking into account objective and measurable factors.
Fees charged for the bidding documents shall be reasonable and reflect only the cost of
their printing and delivery to prospective bidders, and shall not be so high as to discourage qualified bidders.
44. Procurement Environment: Recent changes in the Cameroon legislation have modified the institutional architecture of the bodies responsible for public procurement in the country. The new organizational structure was introduced through three decrees issued on 8 March, 2012, and on August 5, 2013. No special exceptions, permits or licenses need to be specified in the Financing Agreement since the procurement code, approved by the President of the Republic in September, 2004 allows World Bank procedures to take precedence over any contrary provisions in local regulations.
45. Procurement arrangements for Bank-financed projects in Cameroon have been under discussion for some time as the national system has been revised to shift responsibility for the bulk of procurement and contract management from decentralized agencies to a newly created MINMAP. World Bank fielded a procurement mission between October 31 and November 10, 2012 to assess the potential effects of these changes and notably the possible consequences on Bank financed projects in Cameroon. The mission concluded that the new centralized system could lead to a number of positive outcomes. However, concerns were raised with respect to technical and legal responsibilities as well as regulatory issues. This mission was followed by another one conducted jointly with other Development Partners based in Cameroon during the period of January 28 to February 3, 2013, in order to: (a) discuss the recommendations of the initial mission; (b) facilitate the transition from the old to the new procurement system; and (c) ensure the smooth implementation of the Bank financed projects. MINMAP has confirmed in writing to the Bank that it accepts the proposed short term measures of the donors concerning existing projects as identified in the documents of negotiations and the legal agreements, which consist of the creation of special tender boards with full procurement responsibility and the Program Coordination Unit (‘‘Maître d’Ouvrage’’) in charge of the publication of tenders, contracts award and signature of all contracts.
46. Specific procurement arrangements for this Project: The GOC will create a special tender board (“Commission Spéciale de Passation des Marchés Publics,” CSPM) within the relevant “Maître d’Ouvrage” (i.e., implementing entity) for the current Project. The order “Arrêté” of the creation will be acceptable to IDA and reflect the agreement between the GOC and the Bank on the constitution, composition, and competencies of the CSPM under this Project. The “Arrêté” will be issued by the GOC prior to effectiveness.
47. Procurement for Sub-Project: Procurement (works, goods, and services) for the subcomponent will be procured, among others and depending on the amount of the activity, on the basis of community participation in accordance with clause 3.19 of the World Bank Procurement Guidelines (Community Participation in Procurement), Guidelines for Simplified Procurement and Disbursement for Community-Based Investments (March 3, 1998), and other procurement/selection methods detailed in the specific implementation manual for POs approved by the Bank.
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48. Procurement of Works. Under this Project, no major procurement of works is foreseen. Procurement of works under this Project consists mainly at the moment of investments, and is generated by demand for key rural infrastructure, such as the construction or rehabilitation access roads, delimitation of pastoral areas and transhumance corridors, water points, animal health infrastructure. Civil works costing more than the equivalent of US$10,000,000 will be procured through ICB. Each contract estimated to cost more than US$200,000 and less than US$ 10,000,000, will use NCB procurement methods, in accordance with national procedures using Standard Bidding Document acceptable to the Bank, and subject to the additional requirements set forth in the paragraph above (Requirements for National Competitive Bidding of the current annex). Small works estimated to cost less than the equivalent of US$200,000 per contract may be procured through shopping, based on price quotation obtained from at least three contractors in response to a written invitation to qualified contractors. Direct Contracting shall be used in accordance with the provisions of paragraphs 3.7 of the Procurement Guidelines.
49. Procurement of Goods and Non-Consulting Services. Under this Project, no major procurement of goods or non-consulting services through ICB is foreseen. Procurement of goods under this Project will include: (i) vehicles; and (ii) office equipment. Taking into account manufacturing/production capacity in the country, and to ensure that the project benefits from competitive pricing, the procurement of goods will take the form of consolidated into bid packages of at least the equivalent of US$1 million where this is feasible (taking into account the type of goods/services being procured and the timing of their delivery). Procurement contracts for goods estimated to cost the equivalent of US$1 million, or more, will be procured through ICB, using the Bank’s Standard Bidding Documents. For goods contracts worth less than the equivalent of US$1 million, NCB procurement will be used in accordance with national procedures using Standard Bidding Document acceptable to Word Bank and subject to the requirements set forth in the paragraph on Requirements for National Competitive Bidding. Further:
− Procurement of goods and non-consulting services, including those of readily available off-the-shelf maintenance of electronic office equipment and other services such as printing, and editing, which cannot be grouped into bid packages of US$100,000 or more, may be procured through shopping in conformity with Clause 3.5 of the procurement guidelines.
− Based on country-specific needs and circumstances, shopping thresholds for the purchase of vehicles and fuel may be increased up to US$500,000, in consultation with major cars dealers and oil providers.
− Direct Contracting will be undertaken in accordance with the provisions of paragraphs 3.7 of the Procurement Guidelines.
− At the beginning of the project, vehicles procurement packages estimated to cost US$200,000 or less can be procured through UNOPS or other United Nations agencies.
50. Selection of Consultants. Consulting services will be used for the following activities: (i) financial audit; (ii) TA for the MINEPIA’s information system; (iii) communication strategy and implementation plan; (iv) TA for the participatory development of management plans; (v) TA for the development of a contingency emergency response plan, etc. Consulting services will be procured through the most appropriate method in alignment with Bank guidelines and the approved procurement plan. Consultancy services procurement methods will include: Quality-and Cost-Based Selection (QCBS), Quality-Based Selection (QBS), Selection under a Fixed Budget (SFB), Least-Cost Selection (LCS). The following requirements will apply:
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Selection based on Consultants’ Qualifications (CQS) will be used for assignments not exceeding the equivalent of US$300,000. Single Source selection shall also be used in accordance with the provisions of paragraphs 3.8 to 3.11 of the Consultant Guidelines,. All terms of reference will be subject to World Bank prior review.
Assignments for engineering, design and contract supervision in excess of US$300,000, and for all technical assistance assignments above the value of US$100,000, must be procured on the basis of international short-lists in accordance with the provisions of the paragraph 2.6 of the consultants’ guidelines. All other consultancy assignments in which the estimated cost does not exceed US$100,000 per contract, may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines.
Consultants for services meeting the requirements of Section V of the consultant guidelines
will be selected under provisions relating to the Selection of Individual Consultants, through a process of comparing the relative qualifications of candidates expressing interest in the assignment, or approached directly.
51. Operational Costs financed by the project include, inter alia, utilities and offices supplies, vehicle operation, maintenance, and building and equipment maintenance costs. They will be procured using the project’s financial and administrative procedures included in the operation manual and based on the annual work plan and budget. For services (car maintenance, computers maintenance, etc.) to be financed through operating costs, the project will proceed by service contracting for a defined period.
52. Trainings, Workshops, Seminars, Conferences, and Study Tours will be carried out on the basis of approved annual work plan and budget that will identify the general framework of training and similar activities for the year, including the nature of training, study tours, workshops, the number of participants, and cost estimates.
Institutional arrangements for procurement and capacity assessment including risk mitigation measures
53. An assessment of the Project’s implementation arrangements, in particular the Project entities, was carried out. The capacity assessment found that: (i) the MINEPIA and other entities, namely the PCU, RCUs, and POs, have limited experience in the implementation of Bank-financed projects; (ii) there is no specific implementation manual to POs for the management of SPs(iii) the PCU, RCUs, and POs don’t currently have a comprehensive recordkeeping system; and (iv) while the motivation for the reform related to the new institutional arrangements of December 2011 with the responsibilities of MINMAP is understood, some aspects of the new institutional arrangements raise concerns with respect to technical and legal responsibility and related regulatory issues.
54. The recruitment of a procurement specialist with qualification and expertise satisfactory to the Bank within the PCU, and the elaboration of a satisfactory version of the PIM comprising a section on procurement for the use by the project, which are some of the mains keys actions required to be implemented during the initial capacity assessment. Moreover, the assessment also recommended a junior procurement specialist to provide support to the procurement specialist due to the heavy workload foreseen for the PCU procurement unit. Finally, the assessment also
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recommended the setting up a record keeping and filing system for MINMAP, PCU, RCU and POs.
55. The NPCU will include a national coordinator, a financial management specialist, a procurement specialist, a procurement assistant, an accountant, and other technical specialists, all recruited on a competitive basis. Procurement activities of the NPCU that cost FCFA 5 million (US$10,000 equivalent) or more will be conducted with the technical support of a special tender board placed under its authority and to be created through a MINMAP Decree. The assessment of the tender boards under World Bank-financed projects so far has revealed: (i) members’ unfamiliarity with the Bank’s procurement procedures; and (ii) a weakness in the interpretation of Bank procurement procedures. As a result, an appropriate capacity-building program will be established for tender board members.
56. At the regional level, three (3) RCUs will be established and staffed. They will be in charge of preparing work plans and budgets, M&E of activities, and management of the Project in their zones. The RCUs key staff will comprise at least a regional coordinator, and an accountant. For contract amounts of less than FCFA 5 million (equivalent of US$10,000), the RCUs will rely on an internal procurement committee. Details of the institutional arrangement and the responsibility of this internal procurement committee are provided in the Project Administrative, Accounting, and Financial Procedures Manual as part of the PIM.
57. Management, including the procurement process concerning the SP, will be carried out by the POs as described as part of the PIM approved by the Bank.
58. The Administrative, Accounting, and Financial Procedures Manual, including the financial administrative arrangements as part of the PIM, with a detailed section on procurement, outlines, among others, the procurement arrangement and the relevant procedures applicable to the management of the credit.
59. Risks identified and proposed mitigation measures. The overall procurement risk for the Project is rated as High. This is due to, among other factors, the country environment risk of corruption in procurement, especially in public contracts, the lack of experience in implementation of Bank-financed projects of the PCU, RCUs, and POs, and the conflict of interest of MINMAP on the management of complaints, whose contracts are being directly handled by MINMAP. A mitigation action plan has been prepared and agreed to. If properly implemented and monitored, the mitigation action plan will reduce the assessment of risk to Substantial. The action plan is presented in the table below.
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Table 1: Procurement Action Plan
Action to be Undertaken Timeframe Responsible Body
Recruit a Procurement Specialist to the NPCU, assisted later by a junior procurement specialist, with qualifications and expertise satisfactory to the Bank
By effectiveness MINEPIA/NPCU
Create a special tender board (CSPM) within the implementing entity and attached to the Project to supervise Project procurement, which is acceptable to the Bank; and nominate all tender board members
Prior to effectiveness MINEPIA/NPCU / MINMAP
Mandatory submission to the Bank of feedback of the Regulatory Body (ARMP) on the complaints of all contracts directly handled by MINMAP, and Bank No-objection on complaint decisions of said contracts
As needed during Project life
NPCU / MINMAP
MINMAP shall comply with Procurement Services Standard time of the procurement code
As needed during Project life
NPCU / MINMAP
Strengthen the capacity of key staff of the PCU and special tender board members on the Procurement and Consultants Guidelines dated January 2011, revised July 2014
Two months after Project effectiveness and as needed during Project life
NPCU procurement specialist with support as needed from a consultant and/or the participation of Bank procurement staff
Prepare and submit to IDA a specific implementation manual to POs for the management of SPs
Prior to disbursement NPCU
Conduct capacity building for POs and training for RCUs and other Project stakeholders
As needed during Project life and in accordance with an approved annual program
NPCU procurement specialist, with support as needed from a procurement consultant and/or the participation of Bank procurement staff
60. Institutional responsibility for procurement and implementation arrangements. The NPCU/MINEPIA is the key implementing entity and will be responsible for compliance with relevant procurement procedures. This implementing entity is responsible for ensuring that the necessary national clearances and approvals have been received before the no-objection requests are transmitted to the Bank. Procurement contracts costing FCFA 5 million (US$10,000 equivalent) or more depending on their thresholds will be conducted either by MINMAP through their central tender board or with the technical support of a special tender board to be set up by an order (“arrêté”) of the Minister in charge of public contracts at the level of the implementing entity. For contract amounts of less than FCFA 5 million (US$10,000 equivalent) the implementing entities will rely on an internal procurement committee. Details of the institutional arrangement and the responsibility of this internal procurement committee will be provided in the operations manual.
61. Overall project procurement risks. The overall procurement risk for the project is rated as high. This is due to, among other factors, the country environment risk of corruption in procurement, especially in the public contract, the limited experience in the implementation of Bank-financed projects for MINMAP, and the conflict interest of MINMAP on the management of complaints, whose contracts are being directly handled by MINMAP. Mitigation action plans have been agreed which, if properly implemented and monitored, will bring this risk to Substantial.
62. Procurement plan: The Borrower has prepared a Procurement Plan for the first 18 months of project implementation, to provide the basis for the procurement methods. This plan was agreed between the Borrower and the World Bank during negotiations. It will be available in the Project’s
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database and a summary will be disclosed on the Bank’s external website once the project is approved by Board. The Procurement Plan will be updated in agreement with the Project Team at least annually or as required to reflect the actual project implementation needs and improvement in institutional capacity.
63. Publication of Results and Debriefing: The Borrower shall publish information on UNDB online for all contracts under ICB and LIB, and all direct contracts, and in the National press for all contracts under NCB. Such publication shall be within two weeks of receiving the Bank’s no objection to the award recommendation for contracts subject to the Bank’s prior review, and within two weeks of the Borrower’s award decision for contracts subject to the Bank’s post review. The disclosure of results is also required for selection of consultants. The Borrower shall publish information on UNDB online for all contracts when the short list included any foreign firm and all single-source selection contracts awarded to foreign firms, and in the National press all contracts where the short list comprises only National firms and all single-source selection contracts awarded to National firms. Such publication shall be within two weeks after receiving the Bank’s no objection for award of the contract subject to the Bank’s prior review, and within two weeks of successful negotiations with the selected firm for contracts subject to the Bank’s post review.
64. Fraud and Corruption: The procuring entity as well as Bidders /Suppliers/Contractors/Services Providers shall observe the highest standard of ethics during the procurement and execution of contracts financed under the program in accordance with paragraphs 1.16 and 1.17 of the Procurement Guidelines and paragraphs 1.23 and 1.24 of the Consultants Guidelines. The Bank’s “Guidelines on Preventing and Combating Fraud and Corruption in Projects Finances by IBRD Loans and IDA Credits and Grants”, dated October 15, 2016, and revised in January 2011, will apply to this project.
65. Frequency of Procurement Supervision: The capacity assessment of the implementing agency has recommended supervision missions to visit the field at least twice a year and a post review of procurement actions will be conducted on an annual basis.
66. Summarized Procurement Plan: The main works, goods, and non-consulting services to be procured in the Project are listed in Table 2.
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Table 2: List of Works, Goods, and Non-Consulting Services Contract Packages to be procured
Ref. No.
Description Estimated Cost (US$)
ProcurementMethod
Domestic Preference
(yes/no)
Review by World Bank (Prior/Post)
Comments/ Completion Date
1 Acquisition of vaccination kits
417,000 NCB No Post June 2018
2 Vehicles 417,000 DC/Procurement from UN
Agencies No Prior June 2018
3
Acquisition of livestock assets (e.g. cows, small ruminants, etc.)
267,000 DC No Prior June 2018/multiple
small contracts with breeders
4 Acquisition of IT equipment
158,000 NCB No Post Dec. 2017
5
Reagents and consumables for active and passive surveillance
133,000 Shopping No Post Dec. 2017
6 Equipment for vaccines conservation (Freezers, etc.)
83,000 Shopping No Post Dec. 2017
67. Prior review thresholds for works, goods, and non-consultant services. Contracts estimated to cost more than US$5 million for works and US$500,000 for goods per contract, the first ICB and NCB contracts for works and goods, eventually others as identified in the procurement plan, and direct contracting above US$100,000 will be subject to prior review by the Bank.
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Table 3: List of Consulting Assignments with Selection Methods and Time Schedule Ref. No.
Description of Assignment
Estimated
Cost (US$)
Selection Method
Review by World Bank (Prior / Post)
Comments/ Completion Date
1 Update and deployment of the software ARIS-2, including the training of the personnel
83,000 CQS Post June 2018
2
Elaboration of strategical plan for early detection and rapid response of CBPP (Contagious Bovine Pleuro-Pneumonia) and other major animal diseases
67,000 CQS Post Feb. 2017
3 Serological survey and post and pre vaccination for CBPP and Plague of small ruminants (PPR)
33,000 SSS Post Feb. 2017
4 Elaboration of a strategy for improving the supply of improved animal genetic
67,000 CQS Post Feb. 2017
5 Elaboration of sub projects of the stations of Kounden, Louguere, Dogba and Wakwa
83,000 CQS Post June 2018
6 Elaboration of a contingency emergency response plan
67,000 SSS Prior July 2017
7 Technical assistance for the elaboration of management plans
250,000 QCBS Prior June 2018
8 Elaboration of a plan against glossina and evasive plants
67,000 CQS Prior June 2018
9
Technical Assistance for the elaboration of implementation documents of the activities related to the sub component for improving the resilience of poor communities in the North and the Far North regions
100,000 QCBS Post April 2017
10 Capacity building on productive partnership and business plans
83,000 CQS Post June 2017
11 Financial auditor 42,000 LCS Prior June 2018 68. Prior review thresholds for consultant services. Consultant services estimated to cost above US$200,000 for firms and US$200,000 for individuals per contract, and Single Source selection of consultants (firms and individuals) to cost above US$100,000 will be subject to prior review by the World Bank. Similarly, all audit contracts will be subject to prior review as will be any other contract identify in the procurement plan.
Environmental and Social (including safeguards)
Social Safeguards
69. The project would support improvements in livestock health and productivity and is therefore expected to have a positive impact on the lives and livelihoods of the populations living in the target areas. During project preparation, a social assessment was conducted and the results were used to inform the project design and the preparation of the RPF and IPPF. The results of the social and environmental audit of the first phase of PACA that was completed in 2015 have also been used to inform the design of this project and the preparation of the safeguard instruments.
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70. OP 4.10 has been triggered as there are indigenous Baka, Bagyeli and Badzang peoples living in three of the regions in which the project will be implemented: East, Central and South. These populations are largely forest dependent peoples but they have started to participate in small scale animal husbandry as a way to improve their food security and to earn cash that is necessary in order to pay school fees etc. A process of free, prior and informed consultation was undertaken during preparation to explain the project in general and to identify which activities might be of interest and benefit for these populations. The IPPF prepared by the borrower explains the process in more detail and outlines the key activities and targets for these populations. Activities include: (1) support for the development of artisanal beekeeping; (2) small scale poultry operations (traditional incubator to facilitate hatching); and (3) development of small scale goat breeding. The IPPF was disclosed prior to appraisal per the requirements of the policy.
71. There will be no involuntary land acquisition or physical displacement and any subproject proposals that require land acquisition or physical displacement will not be eligible for financing. However, OP 4.12 has been triggered in order to provide guidance regarding how to manage any potential negative impacts on livelihoods, customary use of rangeland and access to natural resources in a protected area. A RPF has been prepared to provide guidance regarding how to screen for any negative impacts related to the implementation of the community management plans that would be financed under Component 2. A Process Framework was also prepared to manage potential impacts of livestock corridors that include portions of private protected areas (ZICs). These impacts will be temporary in nature and are not likely to restrict access to resources in these areas but the Process Framework outlines the exact nature of the livestock corridors and provide guidance regarding how to avoid conflicts with ZIC owners.
72. Many of the activities that would be financed by this project require changes in behaviors and currently held beliefs regarding animal health and productivity. As a result, a social communication strategy would also be financed for each component in order to provide information and training to producers and other actors in the livestock industry. The materials and format will be adapted to ensure that they are culturally relevant and appropriate for the beneficiaries and promote the inclusion of women, youth and vulnerable groups.
Environmental Safeguards
73. The project is rated Category B, partial assessment. Although the potential adverse environmental and social impacts of the activities financed under the proposed project mainly under components 2 and 3, are expected to be site-specific; few of them are expected to be irreversible; and in most cases mitigation measures can be designed more readily. The project activities will cover several agro ecological areas with regard of its national wide coverage. Appropriate mitigation including best environmental and social management practices will be required. The following environmental safeguard policies are triggered: Environmental Assessment (OP/BP 4.01); Natural habitats (OP/BP 4.04) and Forests (OP/BP 4.36). 74. Safeguard instruments. An Environmental and Social Management Framework (ESMF) was prepared and describes the procedures and processes that would be followed in preparing and disclosing site specific safeguard instruments where required as soon as the exact locations and scope of sub-project activities are known. The ESMF covers the issue of potential handling and disposal of veterinary medical wastes that may be generated as a result of the project. In addition, the project will prepare an emergency response to outbreaks of animal diseases as it currently the case in country with Avian Flu in Yaoundé and Swine Fever in Far North, the ESMF considers the measures that will be taken in the event that large numbers of animals need to be destroyed as part
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of the emergency response program. All three frameworks were disclosed in the country on August 24, 2016, and through the InfoShop on August 25, 2016. 75. Implementation cost of safeguard instruments. The frameworks instruments that were prepared as indicated above assess the specific safeguard implementation instrument cost (ESIAs/ESMPs, RAPs, IPP) The costs of the implementation of the environmental mitigation measures under the ESMPs will be almost entirely included in the Project Budget and will be subject to annual planning and implanting exercise. 76. Institutional Arrangement for safeguards management: Given that Ministry of Fisheries and Livestock which will serve as implementing agency with a Project implementing Unit is not very familiar with world Bank safeguards policies, and therefore has very limited capacity on safeguards management, the PIU will hire an Environmental and Social Expert based at the Central and Regional Environmental and Social Experts in the targeted regions. The PIU Environmental and Social Expert will be working closely with the relevant ministries (Ministry of Environment, Protection of Nature and Sustainable Development, Ministry of State property and Land, Ministry of social Affairs) and Civil Society Organizations involved in livestock sector. 77. Consultation with stakeholders: During the preparation of frameworks instruments, an inclusive consultation took place in several agro-ecological regions targeted by the project. The ESMF provides consultation guidelines for each site specific investment. The PIU will prepare and implement a consultation plan for the whole project. 78. Need to better align investments feasibility studies and ESIA consultants. The consultants that will carry out feasibility studies under the project will work closely with the consultants working on the Environmental Impact and Social Studies (ESIA). The choice of sub-project sites will take into account a number of constraints and general considerations from the ESMF and RPF, with potential repercussions on the technical and environmental feasibility of each sub- project and its implementation cost. The consultant completing the feasibility studies will propose several sites options on the basis of defined criteria. These preliminary sites will be submitted to the client and the consultant in charge of Environmental Impact and Social Studies (ESIA). The ESIA studies will analyze these proposed sites and rank the best option that will be recommended. The Consultant in charge of feasibility studies will consider the ESIA comments and the proposals in order to revise the design accordingly.
Monitoring & Evaluation
79. The results framework in Annex 1 defines the performance indicators for each component and subcomponent. A robust M&E system will be implemented to provide high-quality information and allow the Bank to react immediately in the event of any issues that arise. The NPCU will be in charge of the overall M&E and for meeting the agreed reporting requirements. The M&E system will be designed to link technical and financial data on Project progress and impact. It will serve as a tool to assess Project results and as a day-to-day management tool, and will support Project supervision by ensuring that baseline and follow-up surveys and data collection for the key performance indicators are available and regularly updated.
80. M&E reports will be produced quarterly at the regional level and every six months at the national level. Semi-annual and annual reports will be circulated to sectoral ministries and to
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concerned development partners. Before Project-supported activities get underway, baseline data needed for impact evaluation purposes will be collected in project and non-project areas by a third party specialized in data collection and processing. Impact evaluation will be conducted at mid-term and no later than six months before Project completion. Impact studies will assess poverty reduction within the Project areas. The project will support the integration of nutrition considerations in impact evaluation studies as well as the collection and dissemination of information on local feeding practices and their relation to local food systems, as well as good practices to improve nutrition through agricultural interventions.
81. A Project Management Information System (MIS) will be put in place, hosted and maintained by the NPCU. The NPCU’s M&E specialist will be responsible for providing training to the Regional Coordinators of the RCUs, and M&E staff of other relevant government units to ensure that required information is made available and prescribed in a uniform reporting process.
82. Semi-annual joint supervision missions with representatives from the World Bank, and the GOC will assess the status of key Project outcomes and ensure compliance with legal covenants. A Mid-Term Review will be conducted no later than three years after the first disbursement. A final independent evaluation will be conducted in the last semester of Project implementation to assess overall achievement of expected Project results.
83. The M&E manual provides details with regard to the definition of the results framework, the methodology and the instruments to be used for data collection, the institutional arrangements for M&E functions (identification of actors and definition of their respective responsibilities), the GRM, and the mechanism to be used for disseminating information. It will inform a communications strategy that will be developed and implemented by the NPCU.
84. The World Bank will complement M&E performed by the project with a series of biannual implementation support missions. The mission teams will closely monitor performance indicators. They will visit operations in the field to verify data in M&E reports and ensure that the M&E system is generating a complete and accurate picture of the project’s performance.
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Annex 4: Implementation Support Plan
CAMEROON: Livestock Development Project
A. Strategy and Approach for Implementation Support
1. To accelerate the Project readiness for implementation, the Project Preparation Advance (PPA) was designed to finance basic primary studies, preparation of manuals, selection of additional staff required, and procurement activities that impact Project readiness. Activities to be financed under the Project Preparation Facility will help the project meet the readiness conditions for implementation. These activities include: (a) recruitment of consultants; (b) key preparatory studies; (c) organization of workshops, study tours and trainings; (d) acquisition of goods including cars and office equipment; and (e) provision of operating costs. The consultancy work will include: (i) a value chains analysis (completed); (ii) preparation of environmental and social safeguard instruments for the project (drafted); (iii) development of a toolkit for good husbandry practices, norms and qualities; (iv) cost evaluation of equipment and infrastructure works; (v) preparation of the project manuals (in progress); and (vi) recruitment of project staff and the external auditor. Training activities will include: (i) South-South Exchange visit/study tour to value added livestock projects (two tours already implemented); (ii) validation workshop of key preparatory studies, as well as information, communication, dissemination and launching workshops (ongoing). 2. The strategy for supporting project implementation will focus on successfully mitigating the risks identified at various levels and supporting the risk management proposed in the SORT. The approach entails close monitoring of the project’s technical design and implementation and governance, fiduciary, and safeguard issues. It will consist of: (i) implementation support missions carried out jointly with FAO when technical needs arise and (ii) technical assistance in areas of weaknesses and where new approaches/procedures have been introduced. 3. Implementation support missions. The biggest implementation challenge identified is the overall low capacity. To respond to this challenge, and to ensure that project resources are being used effectively to achieve the PDO, the supervision strategy will use a number of instruments to review progress and respond to implementation issues, including: a. Implementation Support (IS) Missions: The World Bank Task Team will conduct semi-annual review and implementation support missions to review LDP implementation performance and progress toward the achievement of the PDO. Given the overall design and scope of the project, a multi-disciplinary team comprised of technical specialists, along with fiduciary, environmental, social, and operations specialists will be needed to support the Government of Cameroon in implementing the project. Support from technical partners, such as FAO, will be sought when needed. The first implementation support mission will take place as soon as possible after effectiveness to provide start-up support through direct and timely feedback on the quality of implementation plans and their likely soundness and acceptability. b. Mid-term review (MTR): An MTR will be carried out mid-way in the implementation phase. It will include a comprehensive assessment of the progress in achieving LDP objectives as laid out in the Results Framework. The MTR will also serve as a platform for revisiting design issues that may require adjustments to ensure satisfactory achievement of the project’s objective. c. Other reviews: Each year, the World Bank and the Ministry of Finance will consider the need for additional analytical, advisory, and knowledge sharing activities and/or third-party reviews.
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Third-party reviews will be especially useful for follow-up of LDP activities in areas affected by conflict. Such reviews will be planned for over and above the semi-annual IS missions. d. Implementation completion: At the close of the project, the World Bank will carry out an implementation completion review to assess the success of the project and draw lessons from its implementation.
4. Objective of implementation support mission. The implementation support and oversight missions would have the combined aim of reviewing the quality of implementation, providing solutions to implementation problems, and assessing the likelihood of achieving the PDO. More specifically, they would: (i) review implementation progress by component, including institutional development aspects; (ii) provide solutions to implementation problems as they arise; (iii) review with the PCU the action plan and disbursement programs for the next six months; (iv) review the project’s fiduciary aspects, including disbursement and procurement; (v) verify compliance of project activities with the Bank’s environmental and social safeguard policies; (vi) review case studies and survey results to measure results indicators to determine progress toward the PDO against the targets set within the Results Framework and the quality of implementation; and (vii) review the quality of capacity-building activities, which are crucial for an effective implementation of the program. The missions would combine some field visits (whenever feasible, taking the security situation into account), field-based focus group discussions and interactive workshops with stakeholders for feedback, and regional workshops as well as national workshops to highlight implementation issues, pick up emerging implementation lessons, and share mission recommendations, including agreements on actions moving forward. It will also include reviews of quarterly/annual reports and various studies. 5. Technical Assistance. Implementation support will include technical support from the World Bank, FAO, and possibly other bilateral/multilateral agencies for critical aspects of the project, for ensuring proper financial management / procurement, as well as for monitoring social and environmental safeguards. The objective of the technical support would be to help the project teams to internalize good practices and to resolve implementation bottlenecks as they are identified during IS missions. Technical assistance will include training workshops to develop core resource teams within implementing units and project teams, helping to finalize manuals, and reviewing and advising on terms of reference for required studies and technical support missions. Implementation support plan 6. Technical support. Some of the investments foreseen under the project are relatively complex from a technical standpoint, especially in terms of ensuring that the activities to be funded actually result in expected efficiency improvements. In addition to the Bank’s core supervision team, the FAO Investment Center, OIE, as well as a number of consultants may be mobilized periodically to provide technical assistance to implementing agencies in the form of hands-on training and mentoring.
7. Focus of support. The first two years of implementation would see more technical support, and later the focus would change to more routine monitoring of progress, trouble-shooting, and assessments based on the Results Framework. The support missions will be complemented by regular short visits by individual specialists to follow up on specific thematic issues as needed.
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8. Financial support. The project financial management specialist based in the country office will review the FM systems, including capacity for continued adequacy; evaluate the quality of the budgets and implementing agencies’ adherence thereto; review the cycle of transaction recording until the final end of report generation; evaluate the internal control environment, including the internal audit function; review IFRs and/or annual Financial Statements; follow up on ageing of the advance to the Designated Account; follow up on both internal and external audit reports; and periodically assess the project’s compliance with the FM manual as well as the financial agreement. On the procurement front the Bank will provide implementation support to the client through a combination of prior and post reviews, procurement training to project staff and relevant implementing agencies, and periodic assessment of the project’s compliance with the procurement manual. Implementation support missions will be geared toward: (i) reviewing procurement documents; (ii) providing detailed guidance on the Bank’s Procurement Guidelines; and (iii) monitoring procurement progress against the detailed Procurement Plan. Following the recommendations of the fiduciary assessments of the Implementing Agencies, and in addition to the prior review supervision to be carried out from Bank offices, the semi-annual supervision missions will include field visits, of which at least one mission will involve post review of procurement actions.
9. Safeguards. The Bank specialists in Social and Environmental Safeguards based in Yaounde will have responsibility for supervising safeguard activities. Each year, they will conduct supervision of the project’s safeguard activities, participate in regional meetings to discuss findings, and draft action plans to improve implementation.
10. Main focus of implementation. Table 1 summarizes the main focus of implementation during the life of the project.
Table 1: Main focus of implementation
Time Focus Skills needed First 12 months
Project start up Support to implementation activities
(sensitization, communes/community consultations and planning, capacity building, strengthening implementation capacity including M&E)
Guidance on applying safeguard instruments Development of impact evaluation
methodology and oversight of baseline survey Procurement, FM, M&E and safeguards
training of staff at all levels Establishing coordination mechanisms with
complementary project (ASGIRAP, ACEFA, Support to preparation of CERC manual
facilitation Communication Monitoring and evaluation
Table 2: Skill mix required for the proposed LDP (per year)
Skills Needed Number of Staff
Weeks
Number of Trips
Comments
Team leader 15 2 DC based
Livestock specialist (Co-TTL) 12 2 DC based
NRM specialist 6 2 Consultant
Value chain specialist 6 2 Consultant
Operation officer 10 CO based
Procurement specialist 6 CO based
Financial management specialist 6 CO based
Environmental safeguard specialist 6 CO based
Social safeguard specialist 6 CO based
M&E specialist 6 2 DC based
Communication specialist 4 CO based
Gender specialist 2 1 DC based
Conflict and fragility specialist 2 1 DC based
B. Role of Development Partners 11. The project was prepared in close collaboration with other development partners, including AFD, FAO, SNV, BID, and others. These partners will not finance any of the proposed activities, because they have their complementary operations, but the NPCU within the MINEPIA will ensure that collaboration and information sharing will occur systematically during implementation of the proposed LDP. FAO will provide technical input during the implementation support missions, and other development partners will also be invited to join these missions when feasible. The NPCU will encourage the establishment of a task force of development partners involved in the targeted areas and to meet on a regular basis to monitor the matrix of interventions and action plan. This task force will also be represented in the meetings of the RCUs for the project.
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12. The project has been designed to support critical activities that were identified in the targeted value chains and areas but are not supported by other partners. This flexible and pragmatic design will enable the project to build on initiatives supported by other partners (which focus on a complementary set of activities) in ways that are expected to foster synergies and create a framework for more integrated livestock development, in line with the project’s objectives and thematic emphasis. The following table provides some additional detail on the development partners cooperating with the LDP and the role they are expected to play. Table 4: Role of Development Partners in LDP
Name Institution/Country Role
Development partners involved in livestock or NRM projects
AFD, SNV, BID, AfDB Ensure synergies and complementarities
Contribute to project supervision,
Representatives of ILRI, ICRAF, the World Agro-Forestry Center
CGIAR Provide support for technology transfer
Country representatives Director, investment center
FAO Contribute to project supervision Ensure provision of skills mix to
support quality of project implementation
Coordinators of Bank projects (PNDP, safety nets project)
World Bank Group Ensure synergies and complementarities
Contribute to project supervision
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Annex 5: Proposed Grievance Redress Mechanism
CAMEROON: Livestock Development Project
1. THE IMPORTANCE OF GRIEVANCE REDRESS MECHANISM IN THE IMPLEMENTATION OF PROJECTS
1. Project implementation will always be subject to complaints and grievances. Some are justified while others are not; some are captured by the regular M&E system and others are not; some are directly or indirectly related to Project implementation while others are not related at all. However, an inclusive, well-designed, and effective Grievance Redress Mechanism (GRM) will help the Project implementation team be more responsive to beneficiaries, increasing trust and improving the M&E system and Project implementation by capturing perceived or real grievances early on.
2. The Project may trigger conflicts between stakeholders in nearly all activities at all implementation levels. For example, in the framework of the NAIP, there may be conflicts between: - POs or Local Communes and the RCU due to delays in the implementation of Sub-Project
(SPs), in access to rural finance, or in establishing Productive Partnerships (PPs); - POs or Local Communes and the Regional Pre-Selection Committee (RPSC) on the sub project
(SP) selection process; - POs and Local Service Providers (LSPs) due to the quality of service delivery; - POs and ABs if PPs are not honored; - Land users and POs or Local Communes on land-related issues; - PO members and PO leaders if their roles are not clear. 3. The existence of a functional GRM has many advantages in the projects’ implementation. It enables to: - Create and reinforce trust between different stakeholders involved in a project (Project
Management Unit, beneficiaries, and intermediate actors) through information of the public on the activities to be implemented within the framework of the project.
- Promote transparency, accountability and responsibility of the PMU’s members; - Prevent fraud and corruption - Facilitate the involvement of all the different stakeholders (and specially the beneficiaries) in
the implementation of the project; - Define and catch problems before they become more serious and impact negatively the
achievement of project objectives. 4. As a reminder, the Livestock Development Project is part of the 2014-2020 National Agricultural Investment Program (NAIP) that aims at transforming agriculture into a core economic drive that creates decent jobs and wealth to meet domestic and foreign demand, through the improvement of food and nutrition security in a sustainable development context. 5. NAIP targets a rural growth standing over 10 percent in 2020 and a livestock growth of 9.3 percent between 2010 and 2020 while the growth of the sector has increased from 2.6 percent in 2010 to 5.7 percent in 2014 (National Institute of Statistics 2013 and 2015).
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6. This is done through investments the followings domains related to livestock in Cameroon: (i) inputs and equipment; (ii) production, processing and conservation infrastructure; (iii) health system; and (iv) diversification of animal production. 7. A positive and functional GRM for the Livestock Development Project is characterized by: - Many channels to receive complaints and the existence of a reporting system ; - Basic standards on which grievances are treated and problems raised in grievances resolved; - Deadlines and clear procedures of treatment of grievances; - Existence of monitoring and evaluation mechanism of the process of grievances management; - Existence of response system matching with the deadline that can inform the plaintiff of each
action undertaking following the grievances.
8. According of those characteristics, the chain of grievances management can be summarized in the figure below.
Figure 5.1 : Grievances management
2. PROPOSITION OF GRM FOR THE LPD
a. THE APPROACH OF GRIEVANCES’ RESOLUTION 9. On the base of the others projects and programs experiences, an effective approach of grievance’ resolution should contain the following stages: 10. Stage 1: the plaintiff Informs authorities (LPD regional or national authorities and others administrations) on the grievances observed during the implementation of the LPD. This can be done through multiple channels and the complaints or denunciations can be collected at different places. The complaints and denunciations can be done through email, telephone, LDP’s website and letters or mails. When these complaints and/or denunciations of grievances are received by these administrations other than the LDP management, they immediately transmit them to for action. These complaints and denunciations shall get to the monitoring and evaluation Officer (at national or regional level) who is in charge of their treatment. 11. Stage2: The monitoring and evaluation Officer carries out the following actions when he receives a complaint or a denunciation: 12. Hypothesis 1: If the complaint or denunciation is not in link with the project’s activities, he advises the plaintive to better pursue by indicating him the competent services capable of
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treating his complaint. This supposes that the operations of capture should beforehand be carry out in conditions describe in hypothesis 2 below. 13. Hypothesis 2: If the grievances or denunciation concern the project’s activities, the monitoring and evaluation Officer should carry out the following operations as follow:
Capture ‐ Register all complaints, denunciations, petitions and suggestions in registers at different levels; ‐ Issue a unique code for each complaint, denunciations, petitions and suggestions received; ‐ Communicate on the different options, channels and contact with different communication
tools; ‐ Give an account to the National or regional coordinator of the arrival of complaint and its
content.
Select and transmit ‐ Clearly identify those in LDP (services and persons) who are better placed to look for a solution
to problems raised in different complaints; ‐ Established clear deadline for each stage of the process of treatment of complaints. ‐ N.B : (i) In function of needs and availability of human resources, LDP can grant this aspect
of treatment of grievances to civil society organization, (ii) The monitoring and evaluation Officer at the regional level must transmit all the complaints linked to grievances to the National Coordination every month to constitute a national database
Acknowledge reception and follow-up : ‐ Inform users at every stage of the complaint treatment process ; ‐ Try to resolve grievances at the first point of contact: To do this, the monitoring and evaluation
Officer must involve all the competent stakeholders in the process (including the civil society in zones where the CSO are well implanted and if their intervention can help to solve the grievance raised in the complaint at the reasonable deadline).
‐ Respect issued deadlines to respond to users.
Verify, Investigate and Act ‐ Objectively evaluate the validity of the complaint on facts and evidences ; ‐ Ensure that the persons involved in the investigation are neutral and impartial; ‐ Act in proportion to the petition or grievance.
Follow-up and Evaluate ‐ Show the importance of the system of grievances by inscribing it in the agenda of meetings of
the project ; ‐ Put in place a system of follow-up that includes traceability in order to archive, classify, in
function of progress of resolution of the grievance and evaluate great trends; ‐ Analyze the data of the system (trends), improve the GRM and eventually adjustments in
management of the project if necessary in case of clear trends type or the zone of the grievances ;
‐ Act in proportion to the petition or the complaint.
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Inform ‐ Contact users to explain on how their grievances have been resolved and indicate to them how
to appeal if the decision taken was not satisfactory to them. In Within the framework of this project and in function to the problems raised, they can call the Steering Committee of the LDP with a copy to the TTL of the program at the World Bank (for infractions linked to the execution of the program). They can also refer to the NACC, the anti-corruption unit of MINEPIA, the anticorruption unit of MINEPDED, the anti-corruption unit of MINAS or the World Bank Anticorruption Officer when the concern raised in the complaint is about corruption.
‐ Publish results of investigation so that the grievances management systems gain in terms of visibility and credibility.
14. The process above described is summarized on the following diagram:
Others ways of denunciations
Monitoring and Evaluation Officer (National Coordination)
Level 1: Concerning the project :
‐Address appeal to the Steering Committee with copy to WB TTLLevel 2: concerning reports on corruption issues: address appeal to NACC or WB anticorruption Officer
National Coordinator
acknowledge
fill in standard form if necessary, register, sort, and transfer to right team member.
report monthly on grievance registered, sorted, transferred, solved at regional level
monitor progress and resolution
transfer immediately
acknowledge
Reports on grievance registered, sorted, transferred, solved
Grievance ResolutionBy the concerns actors at national and regional
level(including civil society if necessary)
screen, assess, investigate, and act
Transfer if n
ecessary
(with
approvalof
Natio
nal or reg
ionalCo
ordinator)
communicate decision
Monitoring and evaluation Officer (regional)
(walk‐in, phone, mail)
(walk‐in, phone, email, mail)
mail
Appeal in case of unsatisfaction
Plaintiff
Line of acknowledgement
Legend
Line of grievance report
Line of internal or administrative transmission
Line of external feedback on grievance resolution
Line of internal feedback
Line of appeal
Competent administration if LDP Unit is not
competent to solve the issue raised in the
complaint
Level 2: Others levels of actions
15. The following diagram details the steps of GRM management in the framework of the LDP:
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b. THE GRM’S INDICATORS OF LDP
- The number of complaints registered ; - The percentage of complaints concerning the project transmitted by other stakeholders; - The percentage of grievances resolved ; - The percentage of grievances resolved in the respect of deadline defines for this task.
3. PRINCIPLES TO BE RESPECTED IN THE FRAMEWORK OF THE LDP’S GRM IMPLEMENTATION
16. The core principles of the LDP’s GRM are the followings: Fairness: Grievances are treated confidentially, assessed impartially, and handled transparently.
Objectiveness and independence: The GRM operates independently of all interested parties to guarantee fair, objective, and impartial treatment to each case. GRM officials have adequate means and powers to investigate grievances (e.g., interview witnesses, access records).
Simplicity and accessibility: Procedures to file grievances and seek action are simple enough that project beneficiaries can easily understand them. Project beneficiaries have a range of contact options including, at a minimum, a telephone number (preferably toll-free), an e-mail address, and a postal address. The GRM is accessible to all stakeholders, irrespective of the remoteness of the area in which they live, the language they speak, or their level of education or income. The GRM does not use complex processes that create confusion or anxiety (such as only accepting grievances on official-looking standard forms or through grievance boxes in government offices).
Responsiveness and efficiency: The GRM is designed to be responsive to the needs of all complainants. Accordingly, officials handling grievances are trained to take effective action upon, and respond quickly to, grievances and suggestions.
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Speed and proportionality: All grievances, simple or complex, are addressed and resolved as quickly as possible. The action taken on the grievance or suggestion is swift, decisive, and constructive.
Participatory and social inclusion: A wide range of project-affected people — community members, members of vulnerable groups, project implementers, civil society, and the media — are encouraged to bring grievances and comments to the attention of Project authorities. Special attention is given to ensure that poor people and marginalized groups, including those with special needs, are able to access the GRM.
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Annex 6: Assessment of the Net Carbon Balance with EX-ACT
Cameroon - Livestock Development Project (P154908) Prepared by the GHG Agriculture Help Desk
1. The following analysis aims to assess the net carbon balance of the project, provide an understanding of which project activities have the largest mitigation and carbon sequestration potential, and provide an understanding of how the project contributes to the participating countries’ mitigation goals. 2. Agriculture accounts for about a quarter of anthropogenic GHG emissions, mainly from deforestation and agricultural emissions from livestock, soil, and nutrient management (IPCC 2014). The agriculture sector accounts for nearly 50 percent of global emissions of nitrous oxide (N2O) and methane (CH4). Nitrous oxide is a powerful warming agent and is about 300 times more potent at heating the atmosphere than CO2, and methane has a global warming potential about 21 times that of CO2 on a 100-year timescale. Global emissions from agriculture and land-use change is increasing as a result of population growth, increasing meat and dairy product consumption, and the increased use of fertilizers. In general, livestock activities contribute to emissions in a variety of ways:
Livestock, especially cattle, produce CH4 as part of their digestion. This process is called
enteric fermentation, and it represents almost one third of the emissions from the Agriculture sector.
The way in which manure from livestock is managed also contributes to CH4 and N2O emissions. Manure storage methods and the amount of exposure to oxygen and moisture can affect how these greenhouse gases are produced.
3. The proposed project will support the development of pig, poultry, beef, goat, sheep, and milk production and value chains, in target areas. The project will also support to pastoral communities, which will lead improvements in rangeland productivity and resilience to drought, and contribute to a secured access of herders to rangelands and complementary feed resources in target areas. Table 1. Estimated Number of Livestock in the Proposed Project
20,979 tons Sheep (mutton) 40Kg live weight per head
Swine (Market) (pork)
28,150 tons 35 Kg live weight per m2 per
Batch (6 months of fattening)
33,198 tons 35 Kg live weight per
m2 per Batch (6 months of
fattening)
36,981 tons Swine (Market) (pork) (6 months of fattening
Swine (Breeding) 6 piglets per sow per cycle 8 piglets per sow per
cycle 10 piglets per sow per cycle Swine (Breeding)
Poultry (chicken) 126,378 tons
18Kg live weight per m2 and per batch (45 days)
164,558 tons 18 Kg live weight per m2 and per batch (45
days)
174,535 tons Poultry (chicken)
Goats 25,341 tons
25Kg live weight per head
29,696 tons 25Kg live weight per
head
44,685 tons Goats
Eggs 70,846 tons
240 eggs per layer per cycle (72 weeks)
75,862 tons 240 eggs per layer per
cycle (72 weeks)
196,916 tons 260 eggs per layer Eggs
Honey 1,174 tons
2,348 tons 2,880 tons Honey
GHG Calculation Results 4. The planned project intervention will result in net GHG sink of 242.7 Million tons of CO2 equivalent (see table 3 above). The sink results primarily from improved livestock management practices, which includes improving the productivity and resilience of pastoral production systems and the intensification of selected cattle, goat, sheep, pig, and farming systems and value chain development, that are being expanded to additional groups. 5. The EX-ACT results, in the results table below, may be interpreted in the following way:
Overall gross results: The without-project (business as usual) scenario leads to combined effects from GHG emissions and carbon sequestration that add up to 681,019,514 tCO2
-e.
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The hypothetical project scenario has a considerably lower impact on GHG emissions and carbon sequestration leading only to a total impact of 438,252,424 tCO2
-e. Overall carbon-balance: Comparing the gross results between the without- and with-project scenarios gives the difference achieved through project implementation, which is also called the project’s carbon-balance. It accounts for a total of -242,767,090 tCO2
-e of avoided emissions or increased carbon sequestration over the full analysis duration of 20 years.
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Table 3. GHG Analysis Summary
Component of the project
Gross fluxes
Balance
N2O
CH4
Results per year
Business as usual Project Scenarios
Business as usual Project Scenarios
Balance
All GHG in tCO2eq Positive = source / negative = sink
CAMEROON: Livestock Development Project 1. This Annex presents the assumptions and results of the economic and financial analyses that were conducted to assess the impact and viability of the proposed LDP Project. 2. The approach to the economic and financial analysis is mixed. Some project investments are already well identified in scope, nature, costs and potential benefits (e.g. component 1 focusing on animal production services in particular improved animal health). But most project benefits would be derived from economic partnerships sub-projects (SPs) under component 3 and would be strictly based on a demand driven basis. Forecasting and quantifying benefits derived from the latter is more difficult. Indicative SP models were thus developed to present a range of the likely investments at production/processing levels in the targeted supply chains (pig fattening, poultry, meat processing, milk production, etc.) that micro entrepreneurs/cooperative/associations might propose to LDP financing.
Project summary
3. PDO. The Project Development Objectives (PDO) are to improve productivity of selected livestock production systems and the commercialization of their products for the targeted beneficiaries, and to provide immediate and effective response in the event of an Eligible Crisis or Emergency. 4. Components. The Project is comprised of four components: (i) Improvement of livestock services access and delivery with four sub-components: (a) Access to animal health services: improving the service delivery capacity of both public and private veterinary services, supporting surveillance and control of animal diseases including vaccination campaign against PCB and PPR, and elaboration and field-testing of animal health emergency plans; (b) Access to high quality inputs, in particular improved genetic material, promotion of improved feed, particularly fodder, and support MINEPIA’s capacity to ensure the quality of breeds, feed and pasture seeds available on the market; (c) Institutional support, capacity building and communication to strengthen MINEPIA staff capacity to carry out sector analysis, policy preparation and implementation, sector monitoring and evaluation, improvement of MINEPIA’s information system, drafting of a communication strategy and implementation plan, development of food-safety norms and quality standards for livestock products, support to regional centers of information and promotion of livestock producers; and (d) Contingency emergency response: development of a contingency emergency response plan, to increase preparedness in the event of a crisis affecting the livestock sector, and allowing to quickly reallocate project funds to respond to an eligible emergency; (ii) Improvement of pastoral productivity, access to markets, and resilience of pastoral communities, to increase the domestic supply of red meat while upgrading livestock production systems (cattle, small ruminants). The component will adopt a community-based rangelands management approach, and will intervene in about 30 communes in 7 regions. It is comprised of three sub-components: (a) Support to animal production practices and the community based management of pastoral areas; (b) Support to commercialization and marketing of pastoral livestock products; and (c) Provision of animals (cattle, small ruminants, poultry) to households in conflict-affected communities; (iii) Support to livestock value chains development: this component will support the development of pig, poultry, beef, goat, sheep, milk and honey value chains in target areas through the establishment of Productive Partnerships (PPs) between livestock POs and buyers
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(traders, agro-industries, etc.) and co-financing of subprojects/business plans promoted by POs (and individuals), under a financial mechanism coupling matching grants and access to medium term credit granted by Participating Financial Institutions (PFIs) including microfinance networks, commercial banks and leasing companies; and (iv) Project Coordination, Management, Communication and Monitoring and Management, with three sub-components: (a) Strategic planning and monitoring; (b) Project Coordination Unit; and (c) Regional Coordination Units. 5. Target Areas and Beneficiaries. The project has a national scope with regards to improved access to livestock services notably animal health services, quality input supply and sectoral capacity building (component 1). Component 2 will focus on pastoral areas in the Northern regions (Far North, North and Adamaoua) and in some districts of the North-West, West, Centre and East regions, targeting about 30 communes. Component 3 would target specific production basins in the ten regions of the country. 6. Direct beneficiaries. Key direct beneficiaries of the project are: (i) livestock rearing households, including pastoralists; (ii) livestock POs; (iii) small and medium scale private livestock operators and enterprises; (iv) vulnerable groups, particularly women and youths, and others at risk; and (v) livestock support services, including the public livestock research and extension services, NGOs, and service providers involved in the targeted livestock value chains in the project areas. The proposed project is expected to benefit at least 120,000 livestock households and 20,000 small livestock operators and enterprises in target areas. 7. Indirect beneficiaries. Indirect beneficiaries include: a) livestock farmers not directly involved with the project activities who will benefit from improved control of animal diseases; b) value chain stakeholders (traders, transporters and processors) who will benefit from increased provision and quality of livestock products, and organization of bulking and marketing; c) Cameroonian end consumers who will benefit from increased and better quality national animal product supply; and d) Other indirect beneficiaries are livestock industry service providers, including veterinarians and inputs providers, including feed and veterinary medicines suppliers, as well as PFIs (commercial banks, microfinance institutions and possibly leasing companies) that will increase their volume of business in the animal production and processing sector.
Economic justification 8. This section aims at addressing the three main following questions, as recommended by the Operational Policy and Bank Procedure (OP/BP) 10.00 on Investment Project Financing and the Guidance Note on Economic and Financial Analysis:
(i) What is the project’s development impact? This is the traditional question underlying the Bank’s approach to cost-benefit analysis. It requires careful consideration of the expected stream of project benefits and costs, grounded in an explicit causal framework linking project activities to targeted outcomes;
(ii) Is public sector provision or financing the appropriate vehicle? This question probes the rationale for public involvement with respect to financing and/or implementation and should explicitly consider alternative modes of provision; and
(iii) What is the World Bank’s value added? This question examines the World Bank’ contribution to the project. It seeks to determine the benefit from Bank staff involvement and whether the proposed project maximizes the development impact of staff effort.
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Project development impact and economic benefits.
9. The Project will: improve the livelihoods (notably incomes) of indirect and direct beneficiaries indicated above; create further employment at both farms and POs level; reduce the trade balance deficit through import substitution (notably for milk and dairy products, poultry, beef, and pork) and increased exports (notably livestock); increase tax revenue resulting from increased turnover of the participating ABs involved in the established economic partnerships. 10. The main economic benefits generated by the Project would be as follows:
(i) increased production of targeted livestock products; (ii) better income for participating small livestock keepers/ pastoralists/ producers, and
therefore improved food security at the household level and a reduction in vulnerability to external shocks, notably climate change and rising food prices;
(iii) reduced transaction costs (notably bulking, transport, marketing and financial costs) and post-harvest losses;
(iv) increased value added retained at the producer (and PO) level within the targeted value chains thanks to the organization of bulking and marketing by participant Producers’ Organizations (POs) and access of POs’ members to finance - including matching grant and short and medium term credit;
(v) enhanced market/business opportunities and economies of scale benefiting all actors of the targeted supply chains (smallholders, transporters, traders, livestock industries and services providers) following the establishment of economic partnerships;
(vi) enhanced bargaining power, understanding of markets, and management capacity among smallholders/POs;
(vii) incremental on- and off-farm employment generated through extension of livestock herds and support to economic partnerships and sub-projects (SPs);
(viii) foreign exchange savings through reduced importation (mainly for eggs, to some extent meat) and increased exports; and
(ix) improved social stability in the project’s intervention areas.
11. The Project would also have a positive impact on participating women, youth and households headed by women. Furthermore, consumers may benefit from reduced consumer prices and improved availability and quality of meat and milk and processed livestock products, which would improve overall food security. Expected benefits would go much beyond the PDO indicators and intermediate results as indicated in the Results Framework (see Annex 1).
Rationale for public sector provision/financing
12. The LDP would address a number of market failures: a) the difficulties of small livestock producers and of their organizations to access investment financing and the inability of commercial bank and microfinance institutions networks to provide adapted medium term lending and value chain financing products (secured working capital financing to finance bulking and marketing to buyers and agribusinesses -ABs); b) the deficient or inexistent links between small producers and formal agribusinesses/buyers in the targeted value chains; c) deficiencies in the improved breeds and animal production inputs market, etc. The Project also has a redistribution role as it targets some value chains that have a large potential for poverty reduction (notably poultry, small ruminants, bee keeping) and groups that are somewhat excluded in many ways from the financial and commercial markets. It also has a political dimension as it perfectly fits into the new policy
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paradigm for agriculture development promoted by the Government which aims at transforming agriculture -in a wide sense including animal production- into a sustainable and commercially-oriented business, the so called “agriculture de deuxième génération”. Therefore public intervention is fully justified to: promote value chain platforms; establish direct economic partnership between POs and formal buyers (notably ABs) to overcome market barriers; support the modernization of various livestock systems, marketing and processing including access to improved technologies (improved genetic material, certified fodder seeds, mechanization services, organized bulking and marketing and processing, product quality enhancement, etc.); kick start and co-finance sub-projects through a matching grant combined with medium term financing credit granted by Participating Financial Interventions (PFIs); and support reforms and modernization of the livestock sector as well as key investment and adaptive research in the targeted value chains. The proposed LDP as an Investment Project Financing (IPF) is an appropriate instrument to achieve the PDO and the Project intermediate results.
Value added of Bank's support
13. The Project is well aligned with the priority themes of the current Cameroon Country Assistance Strategy (CAS). It is also aligned with IFC’s agribusiness strategy in Sub-Saharan Africa, which seeks to provide financing and advice to address critical constraints to agricultural sector growth, and will contribute to key areas of engagement for IFC, including increase access to markets and to improved technologies; linking small producers to large food processors and retailers; and financing small producers through financial institutions. Ultimately, the Project will contribute to the World Bank’s twin goals of ending extreme poverty and promoting shared prosperity and growth. 14. Beyond these World Bank-centered arguments, the Project has significant added value from the Government and development community stand point. Beyond financing, the added value arises mainly from the Bank’s and FAO’s42 technical input based on international experience for similar value chain development projects, introduction of an innovative financing mechanism mixing matching grant and medium term credit (an evolution from the “classic” productive CDD projects), support for capacity development of producers and value chain actors during implementation through training-of trainers methodologies (notably for the ex-ante preparation and financial analysis of SPs/business plans), knowledge sharing and communication. Such Bank important support will complement and aim at correcting deficiencies of national sources of expertise and business advisory support services to small producers/POs, resulting in increasing the project’s development impact in ways that go beyond what could be realized by exclusive reliance on the Government own institutions or existing national consulting firms.
15. The Bank’ support also provides real opportunities for establishing Public-Private Partnerships to support targeted value chains development thanks to the Bank’s convening power which allowed to bring together the Producers’ Platforms (PLANOPAC, CNOP-CAM), agribusinesses, potential participating financial institutions (commercial banks and MFIs) during the project design phase. This convening function will be pursued during project implementation and formalized through the establishment of Economic Partnerships and of Value Chain Platforms.
42 FAO actively participated in the technical design under the FAO/World Bank Cooperative Programme.
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Financial analysis 16. Financial analysis were carried out to assess: (i) whether the targeted producers will get sufficient cash income to justify their adherence to and participation in the Project and thus contribute to raising the capital, creditworthiness, and business record of the POs/SMEs to which they belong; (ii) whether the proposed financial arrangements for supporting SPs/ business plans (BPs) (mix of promoters' own resources, LDP matching grant, and short- and medium-term credit and/or leasing arrangement) would be worth the risk to PFIs and SPs' promoters; and (iii) the attractiveness to producers, POs and other potential targeted VC actors of the proposed typical BPs by targeted value chain (VC).
Typical enterprise models in targeted value chains (component 3)
17. Several typical enterprise/PO models (SPs)/Business plans (BPs) encompassing improved production methods, common planning and marketing of production, joint input and livestock services procurement (notably veterinary services and technical and managerial advice), and sometimes joint animal feed production to benefit from economies of scale, were elaborated for the six targeted value chains, taking into consideration reasonable technical assumptions and verified input and output prices and investment and direct production cost assumptions. Considering the limited number, small size/membership and weaknesses of existing livestock producers’ POs, models were built assuming a typical of 15 members per PO/enterprise. Models integrate multiannual cash flow projections (before and after financing through grants and short- and medium-term credit) that would be used to negotiate PFIs' co-financing as well as check return to investors. 18. These models were developed through several iterations by the members of the National Project Preparation Team (NPPT) between January and April 2016, with assistance from the Food and Agriculture Organization of the United Nations (FAO)43. Several investment options, enterprise scope (particularly with regards to common activities carried out at the PO level such as animal feed production and joint procurement of inputs and services), and various production technologies were tested. The eight elaborated models are the following:
(i) Pig breeding and fattening; (ii) Semi-intensive poultry production; (iii) Egg production; (iv) Modern bee keeping; (v) Bovine Milk production and processing; (vi) Small ruminant fattening; (vii) Cattle fattening with fodder production; and (viii) Improved small scale Meat processing.
19. Enterprise models have been elaborated to assess whether improved technologies and bulking and marketing arrangements under the “with project” situation are likely to attract the interest and participation of smallholder livestock farmers and generate enough additional income to them. Data from the technical and financial results from the PACA-sponsored animal production SPs have been used to develop these models, notably for poultry, egg production, and pig fattening. With regards to milk production and beef and small ruminant fattening, experience from recent
43 Assistance from the FAO Investment Centre Division (TCI).
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EU and other donors funded projects were taken into account. Prices of animal feed, improved breeds, animal production inputs, mechanized services, establishment of small livestock housing and storage infrastructure at field level, hired labor, outputs are based on farm gate prices. Output prices considered in the analysis take into account inter-annual and intra-annual variation in prices. Self-consumption -which can be particularly high for smallholders in comparison to total farm production- was also estimated in order to estimate cash income (net of self-consumption). 20. Investment costs (including broad estimate of buildings and warehouse size, equipment type, etc.) as well as direct production and operating and general costs have been estimated in detail. Considered unit costs took into account current costs of: civil works; animal production buildings and warehouses; processing equipment including transport and initial training for operating them; office, laboratory and other small equipment; energy (electricity, fuel); skilled and unskilled labor if any; raw material purchase and transport from collection points -close to farm gate- to the PO/mill feed; maintenance of equipment and buildings; insurance, communication and advertisement costs; and taxes. 21. The assumed financing pattern for investment costs (excluding capacity building and technical assistance costs embedded in each SP/BP) is as follows: (i) a cash contribution of the PO/promoters of minimum 10 percent of total investment costs; (ii) a Medium Term (MT) credit (assumed to be repaid over 3 to 7 years maximum through equal yearly installments) covering 90 percent of total investment costs; such MT credit will be granted by PFIs at close-to-market interest rate (10-12 percent per year); and (iii) a LDP matching grant (financed through IDA resources) ranging from 25 percent to 50 percent of total investment costs44; however progressively disbursed to the beneficiary, only after successful reimbursed of its MT credit instalments. Capacity building and technical assistance costs embedded in each SP/BP were assumed to be funded by a LDP matching grant at 100 percent. 22. For each model, Working Capital requirements have been estimated, taking into account the direct production costs for the first cycle of production (for example 6 months of production in the case of pig breeding/fattening) and the general costs for the first year. It was assumed they would be funded by: the SP promoters’ own resources (10 percent of total as a minimum); a Short Term (ST) credit granted by the PFI covering 90 percent of the working capital requirement (at an annual interest rate of 15 percent); and a LDP matching grant (ranging from 50 percent to 60 percent of the working capital requirement, depending on total amount) that, as above, would be disbursed to the PO account upon successful servicing of the contracted ST loan. 23. The analyses has been conducted over sixteen years. For each model the following data has been elaborated: (i) detailed investment, financing and estimation of amortization; (ii) presentation of technical assumptions (zoo technical parameters including parturition rate, prolificacy, mortality at various ages, average daily weight gain, etc.,), of prices assumptions and of financial pattern (interest rate for MT and ST credit for working capital requirements); (iv) calculation of gross margin per “block of production”45 detailing income/cash sales of
44 According the proposed financing schedule of SPs/BPs – see FAO January and April 2016 mission proposal. 45 A “block of production” is defined as a subpart of the considered economic activity that, per unit of production and per production cycle, would generate the same directs incomes/cash income and costs/expenses, whatever the year of analysis. As an example, for the pig breeding/fattening model, five blocks were defined: (i) sow over 6 months of production (first four reproduction cycles); (ii) sow (fifth reproduction cycle with reform) over 6 months of production;
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products/by-products and direct operating costs depending on activity level (including labor, energy, etc.); (v) production pattern (evolution of the number of block of production, by block type and per year); (vi) calculation of cash flow -before and after financing- through multiplying the gross margin of each block per the production pattern and deducting investment costs, general expenses (management, administration, insurance, general supply, communication and advertisement costs) as well as replacement of investments; and estimate of Financial Interest Rate of Return (FIRR), Net Present Value (NPV) (at a 5 percent per year discount rate) and Return on Investment (in number of years at full production); (vii) calculation of Profit and Loss Account and Profitability Ratio; and (viii) estimation of production costs of the main product. 24. Results and Recommendations. Most models show good profitability prospects which should attract small producers, VC actors and PFIs. Financial internal rates of return and incremental incomes appear attractive in modeled situations. 25. Example: Pig breeders/fatteners enterprise model. This model assumes a PO composed of 15 producers of which 10 existing pig breeders/fatteners (who would directly benefit from improved production equipment and provision of improved breeds – 9 female and 1 male per producer) and 5 new producers (who would directly benefit from the construction of a modern building and a borehole and procurement of production equipment, improved breeds (as above) and a generator set). Common activities of the PO would consist in buying raw material to produce animal feed, procuring veterinary services and other production inputs, as well as planning production of the group in order to deliver stable quantities of animals per month, in order to secure deals with large buyers and benefit from economies of scale on purchases. The investment at the PO level would consist in constructing a warehouse and procurement of a locally-made motorized feed mill. Total investment costs of the SP is estimated at Fcfa 113 million (including professional services such as technical and managerial training and technical assistance). Considering realistic technical and input and output prices assumptions, the analysis shows that this model seems quite profitable: the cash flow (after financing) is positive in year 1 (Fcfa 21 million) and rapidly increasing, reaching Fcfa 128 million in year 5; the FIRR is 50 percent and the NPV amounts to Fcfa 2.1 billion over 16 years; it only takes 2.6 years at full production (average of year 2 to 16) to recover the investment costs. 26. Results of the financial analysis of the typical SP models must be taken with caution as they are based on assumptions that need to be verified and adapted to the situation of each PO/promoter in the various targeted production basins. For this reason, rigorous, iterative and participatory methodologies for the preparation and financial analysis of SPs/BPs (such as RuralInvest developed by FAO) must be adopted using a set of criteria for the selection of viable SPs/BPs eligible to funding. 27. Such methodology/criteria should notably include: a) the use of sound technical, costs and price assumptions; b) estimation of total and cash, production costs/expenses and income gross margins per sub-activity/block of production, taking into account self-consumption and self-produced inputs and labor; c) calculation of multiyear cash flows before and after financing (LDP matching grant, medium term credit and short term working capital credit); d) checking years with negative cash flow after financing that should necessarily be covered by additional funding source
(iii) boar over 6 months of production (first four reproduction cycles); (ii) boar over 6 months of production (fifth reproduction cycle with reform); and (v) pigs over 5.5 months of fattening.
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(either promoter own resources, and/or higher matching grant and/or higher ST loan); d) return on investments (number of years at full production to recover the investment cost); e) profitability analysis comparing “with project” and “without project” situations; f) calculation of investment and financing (including grant and loans amount) per beneficiary; g) risk analysis; and h) sensitivity analyses, testing the impact of the variation of key assumptions on the financial results. 28. Also, accurate and adapted monitoring of results from funded SPs/BPs will be essential to ensure that the LDP delivers its intended results and impacts, as can be learnt from the PACA implementation.
Economic analysis 29. A cost-benefit analysis was conducted to assess the economic viability of the proposed project from the overall national economy standpoint. 30. Main features. The analysis was conducted over a 25-year period in constant 2016 prices. Financial prices and costs and benefit streams were transformed into economic values applying conversion factors for each category of costs, eliminating taxes and transfers (notably interest charges from short and medium term credit in enterprise models) and taking into account incremental costs after the Project implementation period. Detailed calculations of economic benefits, investment costs and economic cash flows generated by components are on file. 31. Economic benefits considered in the analysis. Quantified economic benefits considered in the analysis are those derived from: (i) improved pasture production and value and reduced overgrazing that would transform into increased forage and live animal production and value; and (ii) economic benefit streams from the implementation of funded SPs/BPs. Improved animal health services, particularly improved vaccination coverage against the CBPP and PSR, would translate into an increased size and value of the national bovine and small ruminant herds and increased net sales, depending on offtake and production costs assumptions. 32. Benefits from improved pasture land (component 2). Data on economic impacts of pastoral improvement in Cameroon are scarce, although such activities have been implemented for a number of years. Some figures based on pasture improvements in the North-West region provided by the MINEPIA Director in charge of pasture were used, as summarized in table 1 below:
33. Overall, the project has a target of 3,000 ha of improved pastures that would be reached after 5 years. It was assumed that: (i) during the year of improvement, the yield/economic value would be increased by 20 percent as compared to the “without project” situation; (ii) one year after improvement, 50 percent of the target yield/economic value would be achieved; (iii) the maximum
without project
with project
Total biomass Ton of dry matter /ha 12.1 38.7Usable biomass Ton of dry matter /ha 4.8 15.5Meat production Equivalent TLU/ha 2.1 6.7TLU economic value Fcfa Thousand/TLU 250 300Total economic value Fcfa Thousand/ha 525 2,010TLU: Tropical Livestock Unit
Economic Gross Margin per ha
Table 1: Assumptions for pasture improvement
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yield/value in the “with project” situation would be reached two years after improvement and in following years. 34. Under such assumptions, the additional economic benefits from improved pastures would account for about 40 percent of the total additional economic benefits considered in the analysis.
35. Benefits from funded SPs/BPs (component 3). Overall the project targets to fund about 200 SPs/BPs over five years. Due to the demand-driven approach of the project it is not possible to predict how many SPs/BPs of each type would be funded in each value chain. Demand for pig meat being on a constant rise, the pig breeding/fattening was considered as a good example to use to generate a typical net yearly return profile as compared to investment which can be summarized as follows:
36. To be on the safe side it was assumed that one third (33 percent) of the 200 funded SPs/BPs would fail e.g. would not generate any additional benefit. Aggregation of economic benefit streams from the successful SPs/BPs took into account their progressive implementation from year 2 to 5. 37. Under such assumptions, the additional economic benefits from funded SPs/BPs would account for about 60 percent of the total additional economic benefits considered in the analysis. 38. Results. Considering all Project costs (including capacity development, coordination and management), the Project would yield an Economic Internal Rate of Return (EIRR) of 17.9 percent and a Net Present Value (NPV) of US$122.9 million (at a 5 percent discount rate) although assuming a failure rate of 33 percent for financed SPs/BPs. The Project is therefore highly profitable from an economic standpoint. 39. Sensitivity analysis. Sensitivity analyses have been carried out to test various scenario: (i) a base case taking into account all project costs; (ii) a variant excluding component 1 costs for which no benefits could be quantified. 40. Base case. A summary of the sensitivity analysis of the base case (all projects costs) is presented in Table 3a below. It indicates a very strong resilience to increases in costs and reductions in benefits. The EIRR would yield 15 percent and 14 percent, respectively, if benefits were reduced by 30 percent or lagged by two years. In the extreme case of benefits being reduced by 50 percent, the EIRR would still yield 8 percent. A summary of the sensitivity analysis made under this scenario is presented in Table 3a below.
Table 3a: Summary of Sensitivity Analysis - Base case a/Base case
Benefit increase Benefits lagged byReduction of benefitsIncrease in costs
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41. Variant: excluding component 1 costs. This scenario only considers costs and net benefits derived from component 2 (improved pasture land and production) and component 3 (economic partnerships and sub-projects). The EIRR and the NPV would be respectively 23 percent and US$ 143 million. The sensitivity analysis on this scenario indicates a very strong resilience to increases in costs and reduction in benefits. The EIRR would still yield 19 percent if benefits would be reduced by 20 percent (and even 13 percent in the extreme case of benefits reduced by 50 percent). If benefits would be lagged by two years the EIRR would still establish at 18 percent. A summary of the sensitivity analysis made under this scenario is presented in Table 3b below.
42. Physical output and Risks. The risk of having large supply responses with negative effects on producer prices, and hence producer incomes, has been assessed as low for the commodities targeted by the project. In fact, the project’s interventions are expected to more than offset any potential negative effects that reduced retail prices may have on producer prices. This will be due to: a reduction in transaction costs; and increased value added as a result of productivity gains and processing activities, increased level of output (increased yields and/or reduced losses), improved quality and economies of scale (the latter also has a direct impact on transaction costs) and direct linkages established between POs and large and formal agribusinesses/buyers. 43. Fiscal Impact. In the short-term, the fiscal impact of the project will be neutral, given that the Government’s contribution to project costs essentially covers taxes and duties on items which will not have been purchased without the project, salaries of existing staff, and a minimal contribution to meet the costs of establishing compulsory-by-law procurement committees and sub-committees. In the medium to long-term, however, the potential positive fiscal impact of the project might be substantial, mainly due to: (i) increased output, income and employment, resulting in increased tax revenues; and (ii) multiplier effects due to increased economic activities in targeted production basins, resulting in sustained demand for goods and services, which is expected to generate additional income and employment effects. The main budgetary impact is related to the annual and periodic maintenance of the built infrastructure in pastoral areas, which costs are estimated at Fcfa 20 million per year after project completion (years 6 to 25). These minimal costs will be easily met by targeted Communes and in fact represent a very small percentage of their current annual budget.
