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Promoting Resilience in Desert Environments (PRIDE) Arab Republic of Egypt Promoting Resilience in Desert Environments (PRIDE) Final project design report Main report and appendices Document Date: 7-Aug 2017 Project No. 2000001280 Report No: 4596-EG Near East, North Africa and Europe Division Programme Management Department Arab Republic of Egypt Promoting Resilience in Desert Environments (PRIDE) Final project design report Contents Currency equivalents iii Weights and measures iii Abbreviations and acronyms iv Map of the project area v Executive Summary vi Logical Framework viii I. Strategic context and rationale 1 A. Country and rural development context 1 B. Rationale 4 II. Project description 7 A. Project area and target group 7 B. Development objective and impact indicators 9 C. Outcomes/Components 10 D. Lessons learned and adherence to IFAD policies and the SECAP 16 III. Project implementation 19 A. Approach 19 B. Organizational framework 21 C. Planning, M&E, learning and knowledge management 23 D. Financial management, procurement and governance 25 E. Supervision 27 F. Risk identification and mitigation 27 IV. Project costs, financing, benefits and sustainability 28 A. Project costs 28 B. Project financing 29 C. Summary benefits and economic analysis 30 D. Sustainability 32 List of Tables Table 1. Estimated Population in the Project Area 9 Table 2. Project Risk Profile and Mitigation Measures 28 Table 3. Budget by Component (USD 000) 29 Table 4. Budget by Financier 29 Table 5. Budget by Category 30 Table 6. Project Beneficiaries of PRIDE Project 30 i Arab Republic of Egypt Promoting Resilience in Desert Environments (PRIDE) Final project design report Appendices Appendix 1: Country and rural context background 35 Appendix 2: Poverty, targeting and gender 41 Appendix 3: Country performance and lessons learned 53 Appendix 4: Detailed project description 55 Appendix 5: Institutional aspects and implementation arrangements 67 Appendix 6: Planning, M&E and learning and knowledge management 79 Appendix 7: Financial management and disbursement arrangements 87 Appendix 8: Procurement 99 Appendix 9: Project cost and financing 107 Appendix 10: Economic and Financial Analysis 127 Appendix 11: Draft project implementation manual 137 Appendix 12: Compliance with IFAD policies 141 Appendix 13: Contents of the Project Life File 143 ii Arab Republic of Egypt Promoting Resilience in Desert Environments (PRIDE) Final project design report Currency equivalents Currency Unit = Egyptian Pound US$1.0 = LE 18 Weights and measures 1 kilogram = 1000 g 1 000 kg = 2.204 lb. 1 kilometre (km) = 0.62 mile 1 metre = 1.09 yards 1 square metre = 10.76 square feet 1 acre = 0.405 hectare 1 hectare = 2.47 acres iii Arab Republic of Egypt Promoting Resilience in Desert Environments (PRIDE) Final project design report Abbreviations and acronyms AWPB Annual Work Plan and Budget BCC Behaviour Change Campaign CAPMAS Central Agency for Public Mobilization and Statistics DRC Desert Research Centre ECDC Egyptian Countr7side Development Company EDHS Egypt Demographic and Health Survey EGP Egyptian Pound EIRR Economic Internal Rate of Return EPADP Egyptian Public Authority for Drainage Projects ESMF Environmental and Social Management Framework FAO Food and Agriculture Organization FY Financial Year GDP Gross Domestic Product GII Gender Inequality Index GIS Geographic Information System GOE Government of Egypt ICB International Competitive Bidding IDD Iodine deficiency disorders IFAD International Fund for Agriculture Development LTB Letter to the Borrower M&E Monitoring & Evaluation MALR Ministry of Agriculture and Land Reclamation MDDW Minimum Dietary Diversity for Women MIIC Ministry of Investment & International Cooperation MWRI Ministry of Water Resources and Irrigation NCB National Competitive Bidding NEET Neither in Education Employment or Training NNI National Nutrition Institute NPC National Project Coordinator NPV Net Present Value PBAS Performance Based Allocation System PMU Project Management Unit PRIDE Promoting Resilience in Desert Environments RIMS Results& Impact Management System SDG Sustainable Development Goals SDRCM Sustainable Development Resource Centre for Matrouh SECAP Social, Environmental and Climate Assessment Procedures TGR Total Goiter Rate TIPs Trials for Improved Practice iv Arab Republic of Egypt Promoting Resilience in Desert Environments (PRIDE) Final project design report Map of the project area v Arab Republic of Egypt Promoting Resilience in Desert Environments (PRIDE) Final project design report Executive Summary1 Introduction The current project aptly titled Promoting Resilience in Desert Environments (PRIDE) has been designed keeping in mind key Government of Egypt and IFAD priorities. The Sustainable Development Strategy (SDS) of the Government of Egypt is designed to transform its economy into a dynamic one with the capacity to reduce poverty, create productive employment opportunities, and maintain social and political stability. The vision recognises that focused and strategic investments are needed for areas that have been left behind. IFAD's proposed investment covering all vulnerable rural communities in Matrouh is aligned with the SDS. The approach developed under PRIDE is also aligned with IFAD's corporate priorities, especially its focus on building climate resilience in rural disadvantaged communities and integrating nutrition-sensitive activities in projects. The PRIDE project will assist the Government in enhancing the productive potential of agriculture in desert areas and places a strong focus on crops and livestock appropriate for these harsh environments. The project will also assist with the development of the 1.5 million feddan flagship programme through developing effective strategies for assistance of the youth and small-farmer groups. The project builds on IFAD’s previous experience in assisting emerging communities on new reclaimed lands. The project also builds on experience of other donors in the region, in particular the World Bank's previously funded intervention. Finally, the project implementation arrangements respond to the recent IFAD country program evaluation. Project Description The development goal of the project will be to reduce poverty and enhance food and nutrition security in rural areas through remunerative, sustainable and resilient livelihoods. The project will assist approximately 216,000 people (36,000 HHs) to build resilience to climate conditions, improve nutritional and socio-economic profiles and improve productive capacities. The current project will be implemented across the Matrouh Governorate, thereby covering all rural vulnerable communities in the region: along the coastal areas, in the Siwa Oasis and in the newly reclaimed lands in El Moghra. The project will be implemented in the Matrouh Governorate and will include specific interventions for the coastal areas from Dabaa to El Salloum, selected activities in the Siwa Oasis and El Moghra in the Al Alamein District where the Egyptian Countryside Development Company (ECDC) or El Reef El Masry has allocated 60,000 feddan to youth and smallholders companies (as part of the 1.5 million feddan initiative). The PRIDE Project will consist of two main components, which will include (i); Climate Resilient Livelihoods (ii) and Integrated Nutrition-Sensitive Investments. The Climate Resilient Livelihoods component will consist of four subcomponents; (i) Water for Agriculture and Watershed Management; (ii) Enhancing Connectivity; (iii) Livestock and Rangeland Development and (iv) Crop Production. The second component will consist of three sub-components: (i) Water for Health (ii) Empowerment of Women for Nutritional Change (iii) Social Infrastructure. Project Approach The PRIDE project will be implemented over a seven-year period and will adopt a community–driven development approach. The project will cover rural communities facing vulnerabilities across the 1 Mission composition: The mission worked under the overall guidance of Mr Abdelkarim Sma, Officer in Charge of Egypt, Kaushik Barua (Programme Officer Egypt) and Ms. Howaida al Hawary (IFAD Country Programme Officer). The consultant’s team consisted of Ms. Maliha H. Hussein (Mission Leader and Agriculture Economist), Ms Shazreh Hussain, Poverty, Gender and Targeting Specialist, Mr Ali Lansari (Agronomist), Mr Mohamed Abdul-Latif (Procurement Specialist), Mr. Aziz Al-Athwari, (Financial Specialist) and Ms Agnese Tonnina (Economic and Financial Analyst). Mr David Colbert, (Environment and Climate Change Specialist) and Mr Nigatu Regassa (under the guidance of Marian Odenigbo, IFAD Nutrition Specialist) worked from their home stations on specific aspects of the design. Ms Isabella Mazarella, Programme Assistant in Rome and Mostafa Aly, Country Programme Assistant provided the mission logistical support vi Arab Republic of Egypt Promoting Resilience in Desert Environments (PRIDE) Final project design report Matrouh Governorate. The approach with the tribal communities in the coastal areas will build on the participatory approach initiated in the Matrouh Governorate by the World Bank in its first investment in the area, which is still used by the Desert Research Centre in interacting with the 43 local communities in the area. In the newly reclaimed areas of El Moghra, the project will work with the youth and smallholder groups who are organized in small formal companies. The project will capitalize on the opportunity to adopt a private sector led approach by facilitating linkages between the large investors and the smallholder
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