Document of The World Bank
FOR OFFICIAL USE ONLY
Public Disclosure Authorized Report No: 56483-TN
PROJECT APPRAISAL DOCUMENT
ON A Public Disclosure Authorized PROPOSED LOAN
IN THE AMOUNT OF EURO 30.1 MILLION (US$41.6 MILLION EQUIVALENT)
TO THE
REPUBLIC OF TUNISIA
FOR A
FOURTH NORTHWEST MOUNTAINOUS AND Public Disclosure Authorized FORESTED AREAS DEVELOPMENT PROJECT (PNO4)
November 16, 2010
Sustainable Development Department Middle East and North Africa Region
Public Disclosure Authorized 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. CURRENCY EQUIVALENTS (Exchange Rate Effective August 5, 2010) Currency Unit = Tunisian Dinar (TD) USD 1 = 1.43 TD USD 1 = 0.72 Euros
FISCAL YEAR January 1 – December 31
ABBREVIATIONS AND ACRONYMS
ADL Association de Développement Local/Local Development Association AGR Activité Génératrice de Revenu/Income-Generating Activity AFA Agence Foncière Agricole/Agricultural Lands Agency ANETI Agence Nationale de l’Emploie et du Travail Indépendant/ National Agency for Employment and Independent Work ANPE Agence National de Protection de l’Environnement/Environmental Protection Agency AVFA Agence de Vulgarisation et de Formation Agricole/Agricultural Extension and Training Agency BFPME Banque de Financement des petites et Moyennes Entreprises/ Bank for Financing of Small and Medium Enterprises BTS Banque Tunisienne de Solidarité/Tunisian Bank for Solidarity CAC Centre d’Animation et de Conseil/Advisory Services and Organization Center CD Comité de Développement/Development Committee CITET Centre International des Technologies de l’Environnement de Tunis/Tunis International Center for Environmental Technologies CLD Conseil Local de Developpement/Local Development Council CNC Comité National de Coordination/National Coordination Committee CPA Contrat Programme Annuel/Annual Program Contract CPS Country Partnership Strategy CR Conseil Régional/Regional Council CRDA Commissariat Régional au Développement Agricole/Regional Commissariat for Agricultural Development DA Designated Account DAF Direction des Affaires Financières/Directorate for Financial Affairs DARAT Direction de l’Animation Rurale et de l’Appui Technique/Directorate for Rural Organization and Technical Assistance DCPES Document Cadre de Protection Environnementale et Sociale/Framework Document for Environmental and Social Protection DGACTA Direction Générale de l’Aménagement et Conservation des Terres Agricoles/General Directorate for Planning and Conservation of Agricultural Lands DGF Direction Générale des Forêts/General Directorate for Forests DGFIOP Direction Générale du Financement, Investissement et Organisation Professionnelle/ General Directorate for Financing, Investment and Professional Organizations DPSE Direction de la Planification et du Suivi Evaluation/Directorate for Planning and M&E DREHAT Directions Régionales de l’Equipement, de l’Habitat et de l’Aménagement des Territoires/Regional Directorates for Equipment, Housing and Land Planning DRHF Direction des Ressources Humaines et de la Formation/Directorate for Human
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Resources and Training EMP Environment Management Plan EPNA Etablissement Publique à Caractère Non-Administratif/Non-Administrative Public Enterprise ERR Economic Rate of Return FEDS Fiche Environnementale de Diagnostic Simplifié/Simplified Environmental Diagnostic Form FIES Fiche d’Information Environnementale et Sociale/Environmental and Social Information Form GDAP Groupement de Développement Agricole et de la Pêche/Agricultural and Fisheries Development Association GIS Geographic Information System GTZ German Technical Assistance/Deutsche Gesellschaft für Technische Zusammenarbeit IBRD International Bank for Reconstruction and Development IDA International Development Association INS Institut National de la Statistique/National Statistics Institute IPA Integrated Participatory Approach IRESA Institut de Recherche et d’Enseignement Supérieur Agricole/Agricultural Research and Higher Education Institute IUFR Interim Unaudited Financial Reports MARHP Ministère de l’Agriculture, des Ressources Hydrauliques et de la Pêche/Ministry of Agriculture, Hydraulic Resources and Fisheries MDCI Ministère du Développement et de la Coopération Internationale/Ministry of Development and International Cooperation MdF Ministère des Finances/Ministry of Finance M&E Monitoring and Evaluation MIDL Ministère de l’Intérieure et du Développement Local/Ministry of the Interior and Local Development NWMFA Northwest Mountainous and Forested Areas Odesypano Office du Développement Sylvo-Pastoral du Nord Ouest/Northwest Sylvo-Pastoral Development Agency ODNO Office de Développement du Nord-Ouest/ Northwest Development Office OEP Office de l’Élevage et des Pâturages/Office of Livestock and Pasture OLB Organisation Locale de Base/Local Grassroots Organization NCB National Competitive Bidding NGO Non-Governmental Organization PEFA Public Expenditure and Financial Accountability PDC Plan de Développement Communautaire/Community Development Plan PDES Plan de Développement Economique et Social/Economic and Social Development Plan PDO Project Development Objective PFS Project Financial Statement PGRN Projet de Gestion des Ressources Naturelles/Natural Resources Management Project PISEAU Projet d'Investissement dans le Secteur de l'Eau/National Water Sector Project PNO Projet de Développement des Zones Montagneuses et Forestières du Nord- Ouest/Northwest Mountainous and Forested Areas Development Project REF Régie d’Exploitation Forestière/Forest Operations Board RPF Resettlement Policy Framework SDR Safeguard Diagnostic Review SME Small and Medium Enterprise SMSA Société Mutuelle de Services Agricoles/Mutual Group for Agricultural Services
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SBD Standard Bidding Document SOE Statement of Expense SSS Single-Source Selection TD Tunisian Dinar UCP Unité de Coordination de Projet/Project Coordination Unit USD United States Dollar UPAP Unité de promotion de l’API et du Partenariat/Promotion of IPA and Partnerships Unit UTAP Union Tunisienne de l’Agriculture et de la Pêche/Tunisian Union for Agriculture and Fisheries
Vice President: Shamshad Akhtar Country Director: Neil Simon M. Gray Sector Manager: Luis F. Constantino Task Team Leader: Garry Charlier
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TUNISIA Fourth Northwest Mountainous and Forested Areas Development Project (PNO4)
CONTENTS
Page
I. STRATEGIC CONTEXT AND RATIONALE ...... 1 A. Country and Sector Issues ...... 1 B. Rationale for Bank involvement ...... 4 C. Higher Level Objectives to Which the Project Contributes ...... 5
II. PROJECT DESCRIPTION ...... 5 A. Lending Instrument ...... 5 B. Program Objective and Phases (If Applicable) ...... 5 C. Project Development Objectives and Key Indicators ...... 6 D. Project Components ...... 7 E. Lessons Learned and Reflected in the Project Design ...... 12 F. Alternatives Considered and Reasons for Rejection ...... 14
III. IMPLEMENTATION ...... 15 A. Partnership Arrangements (If Applicable) ...... 15 B. Institutional and Implementation Arrangements ...... 15 C. Monitoring and Evaluation of Outcomes/Results ...... 19 D. Sustainability...... 20 E. Critical Risks and Possible Controversial Aspects ...... 20 F. Loan Conditions and Covenants ...... 22
IV. APPRAISAL SUMMARY ...... 23 A. Economic and Financial Analyses ...... 23 B. Technical ...... 24 C. Fiduciary ...... 24 D. Social...... 25 E. Environment ...... 26 F. Safeguard Policies ...... 27 G. Policy Exceptions and Readiness...... 28
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Annex 1: Country and Sector or Program Background ...... 29
Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ...... 34
Annex 3: Results Framework and Monitoring ...... 36
Annex 4: Detailed Project Description ...... 45
Annex 5: Project Costs ...... 52
Annex 6: Implementation Arrangements ...... 53
Annex 7: Financial Management and Disbursement Arrangements ...... 63
Annex 8: Procurement Arrangements ...... 73
Annex 9: Economic and Financial Analysis ...... 80
Annex 10: Safeguard Policy Issues ...... 91
Annex 11: Note on PNO4 Interventions in Forested Areas ...... 103
Annex 12: Project Preparation and Supervision ...... 115
Annex 13: Documents in the Project File ...... 116
Annex 14: Statement of Loans and Credits ...... 117
Annex 15: Country at a Glance ...... 118
Annex 16: Map IBRD No. 38030 ...... 120
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TUNISIA
FOURTH NORTHWEST MOUNTAINOUS AND FORESTED AREAS DEVELOPMENT PROJECT (PNO4)
PROJECT APPRAISAL DOCUMENT
MIDDLE EAST AND NORTH AFRICA
MNSSD
Date: November 16, 2010 Team Leader: Garry Charlier Country Director: Neil Simon M. Gray Sectors: Roads and highways (30%); General Sector Manager/Director: Luis F. Constantino agriculture, fishing and forestry sector (25%); Agricultural extension and research (20%); Crops (15%); Irrigation and drainage (10%) Themes: Other rural development (23%); Rural markets (22%); Rural non-farm income generation (22%); Land administration and management (22%); Participation and civic engagement (11%) Project ID: P119140 Environmental category: Partial Assessment Lending Instrument: Specific Investment Loan
Project Financing Data [X] Loan [ ] Credit [ ] Grant [ ] Guarantee [ ] Other:
For Loans/Credits/Others: Total Bank financing (US$m.): 41.6 Proposed terms: Euro denominated IBRD Flexible Loan with a Variable Spread. Financing Plan (US$m) Source Local Foreign Total Borrower 9.24 0.00 9.24 International Bank for Reconstruction and 41.44 0.16 41.60 Development Local Communities 6.32 0.00 6.32 Total: 57.00 0.16 57.16 Borrower: Republic of Tunisia
Responsible Agency: Odesypano (Northwest Sylvo-Pastoral Development Office under the MAHRP) Béja, Tunisia Tel: (216) 78 450 500 Fax: (216) 78 454 718 [email protected]
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Estimated Disbursements (Bank FY/US$ m) FY 11 12 13 14 15 16 17 Annual 2.88 6.96 8.89 9.24 7.50 4.62 1.51 Cumulative 2.88 9.84 18.73 27.97 35.47 40.09 41.60 Project implementation period: Start January 1, 2011 End: December 31, 2016 Expected effectiveness date: January 1, 2011 Expected closing date: June 30, 2017
Does the project depart from the CAS in content or other significant respects? [ ]Yes [X] No Ref. PAD I.C. Does the project require any exceptions from Bank policies? Ref. PAD IV.G. [ ]Yes [X] No Have these been approved by Bank management? [ ]Yes [X] No Is approval for any policy exception sought from the Board? [ ]Yes [X] No Does the project include any critical risks rated “substantial” or “high”? [X]Yes [ ] No Ref. PAD III.E. Does the project meet the Regional criteria for readiness for implementation? [X]Yes [ ] No Ref. PAD IV.G.
Project development objective Ref. PAD II.C., Technical Annex 3 The Project Development Objectives (PDO) are to improve the socio-economic conditions of the rural population and promote better protection and management of natural resources in the project area using an integrated participatory approach to community-based development. Project description [one-sentence summary of each component] Ref. PAD II.D., Technical Annex 4 The project components are as follows: Component 1: Institutional support and technical assistance for Community Development Plan preparation and implementation in the project area. The overall objective of this component is to strengthen the institutional and organizational capacities of all the main development partners involved in the implementation of the project, improve their methodological tools and operational practices, and foster the mainstreaming of the Integrated Participatory Approach in local development processes. Component 2: Support for agricultural and pastoral production and income-generating activities in the project area. The overall objective of this component is to promote more diverse and better performing agricultural and pastoral production systems (mainly crops and livestock activities with higher yields and more added value) as well as to assist vulnerable groups (primarily women, young people, and landless) in carrying out profitable and sustainable on- and off-farm income-generating activities. Component 3: Consolidation, protection, and management of natural resources in the project area. The overall objective of this component is threefold: (i) to expand and improve the vegetation cover in targeted project areas, including rangelands, pastures, and tree plantations; (ii) to improve the status of selected forested areas through participatory forest management plans implemented within the framework of Community Development Plans; and (iii) to promote more sustainable natural resource management techniques and practices. Component 4: Improvement of basic rural infrastructure in the project area. The overall
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objective of this component is to improve access to basic infrastructure for communities located in remote areas, mainly in terms of rural roads and potable water.
Which safeguard policies are triggered, if any? Ref. PAD IV.F., Technical Annex 10 OP/BP 4.00 – Piloting the Use of Borrower Systems to Address Environmental and Social Issues in Bank-supported Projects. OP/BP 4.12 Involuntary Resettlement. Significant, non-standard conditions, if any, for: Ref. PAD III.F. Board presentation: None
Loan/credit effectiveness: a) The Borrower and the Project Implementing Entity (Odesypano) have adopted the Operations Manual, satisfactory to the Bank.
Covenants applicable to project implementation: b) The Borrower shall promptly make the proceeds of the Loan available to the Project Implementing Entity through budgetary allocations. c) The Borrower shall ensure that the Project is carried out in accordance with the provisions of the Anti-Corruption Guidelines. d) The Project Implementing Entity shall: (i) carry out the Project in conformity with the provisions of the Safeguard Diagnostic Review (SDR), the Framework Document for Environmental and Social Protection/ Document Cadre de Protection Environnementale et Sociale/ (DCPES) and the Resettlement Policy Framework (RPF); (ii) inform the Bank of any developments in the Environmental Legislation applicable to, and that may affect the implementation of, the Project; and (iii) not amend, suspend, abrogate, repeal or waive any provisions of said SDR, DCPES and RPF without prior concurrence of the Bank. e) The Implementing Entity shall ensure that: (i) prior to carrying out of any Project activities not identified, assessed, nor included in the DCPES, such activities shall be subject to an Environmental Assessment (EA), as described in the DCPES; and (ii) mitigating and monitoring measures for impacts of said activities are carried out in accordance with the provisions of the SDR and the DCPES. f) The Project Implementing Entity will prepare and provide to the Borrower for transmission to the Bank, reports on the application of the provisions of the DCPES to Project activities. The Bank may provide comments as appropriate on said reports, notably to agree with the Project Implementing Entity on remedial actions to be taken by the Project Implementing Entity to achieve compliance with the SDR, the DCPES and the RPF. g) The Project Implementing Entity shall ensure that any activity under the Project, requiring land acquisition is carried out in accordance with the RPF.
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I. STRATEGIC CONTEXT AND RATIONALE
A. Country and Sector Issues
1. Tunisia has made solid progress in poverty reduction, but challenges remain in particular for rural poverty. Tunisia has sustained an average 5 percent growth rate over the past 20 years which compares favorably to other emerging countries’ growth performance. The agricultural sector remains important for the economy, contributing to around 10 percent of GDP, while employing 16 percent of the total labor force and 27 percent of the rural labor force. Cereals and olives dominate agricultural production. Livestock production, mostly by small farmers, also contributes an important share. However, the agricultural sector is still growing below its potential for pro-poor development and to a great extent, poverty remains a rural phenomenon. Sector growth has remained consistently lower than overall annual economic growth, averaging around 2.8 percent. 2. Socio-economic development in the Northwest has not kept pace with that of other regions. The mountainous and forested areas of the Northwest cover some 1.2 million ha or around 60 percent of the Northwest region, composed of five governorates or sub-regions, each with its own public administration: Béja, Le Kef, Jendouba, Siliana, and a portion of the Bizerte governorate. Infrastructure and public support services for agriculture and other activities remain insufficient, as these are both costly to implement and difficult to maintain. The gaps in size and efficiency of commercialization opportunities, linked to both infrastructure constraints and a lack of commercial actor organization, also represents a bottleneck that impedes regional production growth. Furthermore, agricultural lands are particularly heavily fragmented in the region, with nearly 75 percent of parcels under 10 ha and 50 percent under 5 ha, with the added constraint of naturally poor soils. Moreover, there is still room for increased community responsibility and involvement in local development processes. Despite the progress accomplished under various development programs over the last twenty years (see paragraph 5 below), a large part of the Northwest population is still trapped in a vicious circle of low agricultural productivity and lack of revenue opportunities, consequent overexploitation of natural resources, and resulting poverty with limited opportunities for improving living conditions without a sustained development effort and large-scale public investment. 3. Sustainable natural resource management in the Northwest represents a crucial component of poverty reduction. The Northwest region governorates are rich in natural resources, home to 75 percent of the national water supply originating in its watersheds and more than half of the country’s forested areas (535,000 ha). High population and livestock pressures on the land, coupled with inadequate land management, non-adapted agricultural practices, naturally poor soils often located on steep slopes, and heavy winter precipitation, all combine to increasingly induce resource degradation. Farmers are forced to overexploit arable lands and move to marginal ones. Encroachment by crops and fires cause sizeable losses to forests and grazing areas, further exacerbating soil erosion and degradation in the absence of vegetative cover. It is estimated that 60 percent of land in the region is currently eroded, subsequently contributing to siltation of water reservoirs and to decreases in dam storage capacity. Climate change has also emerged as a major challenge for the agricultural sector, with already visible impacts, namely an increased incidence of flash floods and wild fires, which are set to exacerbate already existing natural resource management issues.
- 1 - 4. A more rational and adapted use of land, and improved crop intensification through closer technical training, would enable significant improvements in cereal, fodder, and orchard production, thus reducing the pressure on farmers to overexploit their land or exploit marginal ones. Coupled with soil and water conservation works, increased vegetation cover, and pastoral and sylvo-pastoral improvements, such activities would also contribute to reducing erosion and siltation of reservoirs.Additionally, improvements in livestock races and better livestock integration would lead to considerably higher milk and meat production, thus generating added opportunities for revenue and consumption. Off-farm income-generating activities, especially with regard to non-ligneous forest resources (including essential oils, honey, pine nuts, snails, hunting, etc.) represent important alternative revenue opportunities for the most vulnerable groups (namely landless families). Coupled with the participatory development of forest management plans, these activities can both contribute to reducing the pressure on forest resources and facilitating community access and preservation of these resources. 5. The Government is fully committed to the challenges of poverty reduction and sustainable natural resource management. Around 60percent of Tunisia’s budget is already allocated to public investments in infrastructure (including roads, transport, and communications) and human capital (including housing programs). Furthermore, the Government has maintained a high level of public expenditure for environmental protection and natural resource management over the last decade, amounting to over 1percent of GDP. The proposed project was prepared under the 11th National Economic and Social Development Plan (2007-2011). The 11th Plan comprises five main axes, of which one aims to transform the agricultural system in the context of sector policies that respond to the need for an economic structure transformation through a greater diversification of the productive base and an increase in the contribution of high added value and skill-intensive activities. Under the Plan, specific actions included the rationalization natural resource use and the promotion of the agricultural sector. The proposed project also remains in line with the Government directives outlined in the recently approved 12th National Economic and Social Development Plan (2010-2014). 6. In terms of sustainable natural resource management, the Government is implementing two major nationwide programs relating to soil and water conservation as well as integrated water management and conservation, both co-financed by the Bank. Concerning climate change, the Ministry of Agriculture, Hydraulic Resources and Fisheries/Ministère de l’Agriculture, des Ressources Hydrauliques et de la Pêche (MARHP), in collaboration with the German Technical Assistance/Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ), has completed a strategy and action plan for climate change adaptation for the agricultural sector, which will be integrated into a forthcoming national climate change strategy and adaptation project portfolio. 7. In the Northwest in particular, a number of important public investments have been implemented. In addition to co-financing three previous local development projects in the Northwest1 with the Bank, the Government is also financing the annual budgets of the five Regional Commissariats for Agricultural Development/Commissariats Régionaux au Développement Agricole (CRDA) in the region. A variety of other public initiatives are also underway, primarily aimed at facilitating microcredit and creating job opportunities for
1 These three previous operations are: (a) the Northwest Rural Development Project, IBRD Loan No. 1997-TUN (from 1982- 89); (b) the Northwest Mountainous Areas Development Project, IBRD Loan No. 3691-TUN (from 1994-2001); and (c) the recently completed Northwest Mountainous and Forestry Areas Development Project, IBRD Loan No. 7151-TUN (from 2003- 2009).
- 2 - vulnerable groups, namely women, young graduates, and landless. Other initiatives related to specific sub-regions within the Northwest have also been launched, including the Integrated Development Program initiated by the President in 2009, aiming to create a dynamic local economy (including through employment) and to thus improve the development indicators for 90 priority sub-regional districts or delegations2 (including two in Béja, three in Jendouba, and one in Le Kef). Program implementation focuses firstly on rural infrastructure and the promotion of productive activities, with responsibility given to the Local Development Councils/ Conseils Locaux de Développement (CLDs) and regional councils of the governorates encompassing these delegations. More generally, the Government strategy in the Northwest region aims to improve the socio-economic conditions of communities and specifically reducing the gap between urban and rural areas, while promoting a better protection and management of natural resources. The Northwest Sylvo-pastoral Development Agency/Office du Développement Sylvo-Pastoral du Nord Ouest (Odesypano) represents the main institution with the capacity to implement this strategy in the mountainous and forested areas of the Northwest region. Its mode of intervention within the communities in these areas is the Integrated Participatory Approach (IPA), which has been consolidated and improved over the years (see below). Box 1. The Integrated Participatory Approach The community-based Integrated Participatory Approach (IPA) for local development fostered by the Odesypano in the Northwest of Tunisia essentially involves the participatory preparation of Community Development Plans /Plans de Développement Communautaire (PDCs) and their implementation through Annual Program Contracts/Contrats Programme Annuels (CPAs) in partnership with the local communities, regional and local authorities, and other actors in local and regional development. IPA produces more relevant and sustainable results compare to a traditional thematic approach, and the direct involvement of populations enables a better formulation and prioritization of development activities and ensures greater durability. Furthermore, IPA helps public authorities to evolve from an often conflicting relationship with communities to a more productive partnership based on mutual trust. This approach also supports communities in evolving from a more passive role to an active participation in their own local development. Under the PNO3, the socio-territorial basis used for PDCs was the village (douar) or a cluster of villages. The first generation of plans consisted predominantly of “hard” investments (mainly physical) with a complement of “soft” components (essentially capacity building for grassroots organizations). Second generation PDCs under the PNO4 or plans de consolidation are expected to focus more on soft components, since most of the needs in “hard” investments would have already been met previously.The PNO3 also achieved institution building, improvements to the capacity of grassroots organizations, and the consolidation of partnership mechanisms between different operators in local and regional development and their adoption of IPA practices, as a part of the preparation and implementation of PDCs. As a result, the Odesypano’s development partners as well as the communities in project areas are now familiar with preparing and implementing integrated PDCs on a participatory basis (for more information on previous project achievements see Annex 1). PDCs are integrated and cover a wide range of diversified investments on different aspects of local development. In terms of financing, the PNO4 supports the preparation of PDCs and CPAs in consultation with communities, local and regional authorities, as well as other partners. Activities prioritized in the PDCs are funded, as appropriate, directly by relevant sector ministries, governorates and delegations, or main partner agencies, from their own budgets (for instance roads by the Ministry for Equipment, schools by the Ministry of Education, etc.). The PNO4, for its part, will only finance relevant activities in PDCs/CPAs in the areas of agricultural and pastoral production, related income-generating activities, consolidation, protection and sustainable management of natural resources, and improvement of basic rural infrastructure (primarily rural roads and water supply). Furthermore, community counterpart contributions are required for PNO4-supported sub-projects.
2 The administrative subdivisions of the country include from largest to smallest: governorate (regional), delegation (sub- regional), and administrative sector (imada). See Annex
- 3 - B. Rationale for Bank involvement
8. The Bank has been working with Tunisia in rural development and natural resource management through a number of projects with demonstrated positive impacts and results. As mentioned, the Bank has co-financed three previous operations in the Northwest region, and the Government has requested Bank involvement in the proposed PNO4 to start in 2011. The significant achievements and outcomes of the recently satisfactorily completed PNO3 project are well documented and have significantly contributed to: (i) an increase in average rural household income (from TD 2,050/USD 1,460 in 2003 to TD 3,784/USD 2,700 in 2009 in constant terms); (ii) lower unemployment rates (16 percent in 2009 down from 19 percent in 2003); (iii) better access to basic infrastructure, with access to roads increasing from 56 percent to 81 percent and access to potable water increasing from 69 percent to 81 percent over the same period; (iv) increases in vegetation and tree cover from 32 percent to 38 percent; (v) increases in the percentage of areas treated with soil and water conservation investments from 0.3 percent to 13 percent, covering 20,700 ha of fragile lands; and (vi) significant improvements through increased yields, diversification of agricultural production systems, and land use rationalization. However, the integrated rural development approach promoted by the Government and the Bank in the Northwest still requires sustained investments and support to consolidate, deepen, and expand these positive results to other parts of the region. The communities already covered under the PNO3 still need additional investments for further improvements to their socio-economic conditions, as well as additional institutional strengthening for more self-reliance. 9. The Bank is very well positioned to continue supporting integrated rural development and sustainable natural resource management in Tunisia, particularly in the Northwest region. As mentioned, the PNO3 and previous operations in the Northwest have achieved significant results, and have provided the Bank with over 30 years of experience in development in this region of Tunisia. The Bank is also co-financing other large-scale projects in Tunisia and is one of the few multilateral agencies with sufficient financial and technical capabilities to efficiently support both preparation and implementation of such initiatives. Specifically, the Bank co-financed the first phases of the National Water Sector Project/Projet d'Investissement dans le Secteur de l'Eau (PISEAU) and Natural Resources Management Project/Projet de Gestion des Ressources Naturelles (PGRN) and is now co-financing the ongoing PISEAU2 and recently approved PGRN2. Through these experiences, the Bank has acquired a wide cumulative experience in working with Tunisian governmental and non- governmental organizations and institutions. The Bank is therefore well placed to help bring about the close collaboration between ministries, local actors, and non-governmental organizations (NGOs) that is critical to the success of integrated and community-based rural development projects. Additionally, the Bank can bring real added value, given its global, regional and Tunisia-specific expertise in related areas, namely environment and climate change. Relevant ongoing projects include the Addressing Climate Change Impacts in the Oak Forest Ecosystem Project, the Gulf of Gabès Marine and Coastal Resource Protection Project, as well as the upcoming Ecotourism and Conservation of Desert Biodiversity Project. The Bank is also instrumental in contributing to the knowledge agenda on natural resource management and climate change issues, namely through the upcoming regional flagship report on climate change for the MENA region and a country-specific climate change study for Tunisia, among other MENA client countries.
- 4 - C. Higher Level Objectives to Which the Project Contributes
10. Alignment with the Country Partnership Strategy (CPS). Promoting integrated rural development as an instrument for reducing rural poverty and improving the living standards of rural communities is an important area of continued dialogue between Tunisia and the Bank. The recently approved CPS for the 2010-13 period identifies as two of its three pillars: (i) growth, competitiveness and employment; and (ii) sustainable development and climate change. A relevant outcome is identified as “Agriculture Sector Performance Improves” which is underscored by the need for an increase in the average agricultural income of a rural household in the Northwest region and by improvements in agricultural production systems and diversification of crops. Furthermore, the CPS also recognizes the relationship between these two pillars and another outcome: “Progress in Managing the Impact of Climate Change.” The CPS states that, through the PNO4, “the focus of the Bank’s work will be to help farmers improve agricultural productivity and natural resource management through soil/water conservation, small-scale irrigation, agro-forestry and pasture improvements. The goal is to ease the vulnerability of some of the poorest communities in Tunisia and develop better capacities to manage the impact of climate change.” One focus of the PNO4 will thus be to build awareness of climate change impacts for farmers and include climate-appropriate resilience measures into PDCs. 11. Moreover, the PNO4 is explicitly listed in the CPS in order to “continue supporting interventions that improve the income and socio-economic conditions of some of Tunisia’s poorest people who live in the rural areas of the country’s Northwest”. The CPS also indicates that, through the project, “the Bank will support Tunisia’s efforts to improve land management practices, with emphasis on creating sustainable production systems in rural areas”. As demonstrated above, the proposed project is well aligned with Government priorities for the agricultural sector, natural resource management and poverty reduction at both the national level and for the Northwest in particular. Finally, the Government, through the MARHP, is actively promoting enhancement and institutionalization of IPA as well as community development partnerships in all rural development programs and projects. Drawing from the extensive experience of the Odesypano in promoting and implementing bottom-up development using community-based IPA, the Government will be able, through the PNO4, to continue providing targeted financial, technical, and capacity building assistance to some of the poorest and most remote communities of the Tunisian Northwest.
II. PROJECT DESCRIPTION
A. Lending Instrument
12. The project will be financed by a Specific Investment Loan of USD 41.60 million to be implemented over six years. The total project cost is estimated at USD 57.16 million, with Government counterpart funding estimated at USD 9.24 million and contributions from local beneficiary communities estimated at USD 6.32 million (in cash or in kind).
B. Program Objective and Phases (If Applicable)
Not applicable.
- 5 - C. Project Development Objectives and Key Indicators
13. The Project Development Objectives (PDOs) are to improve the socio-economic conditions of the rural population and promote better protection and management of natural resources in the project area3 using an integrated participatory approach to community-based development. 14. The Project’s key performance indicators for monitoring and evaluation are: (i) Percentage improvement in a composite index of socio-economic indicators at the administrative sector (imada) level: employment, housing conditions and household durable goods, access to potable water, access to roads, access to basic services (health, education and electricity); (ii) Number of sectors involved in the project that have their populations organized into Agricultural and Fisheries Development Associations/Groupements de Développement Agricole et de la Pêche (GDAPs) or informal Development Committees/Comités de Développement (CDs)4 and have prepared their PDC, which is being implemented in collaboration with partners; (iii) Increase of land under soil and water conservation management and of land covered by perennial plantations and improved pasture in project areas. 15. Scope of intervention. The project will focus on rural communities located in 113 administrative sectors or imadas (88 previously covered under PNO3 and about 25 new ones, representing an approximate 30 percent increase in the area covered) in the five governorates of Béja, Bizerte, Jendouba, Le Kef, and Siliana, covering the mountainous and forested areas of the Northwest region. This will increase the area and population of the mountainous and forested areas of the Northwest serviced by the Odesypano to 49 percent and 51 percent, respectively (up from 37 percent and 43 percent, respectively, under the PNO3). 16. Project implementation period. The project implementation period is six years (2011- 2016) for two main reasons. First, this will coincide with the preparation and implementation of the recently approved 12th National Economic and Social Development Plan (2010-2014). Consequently, the overlap of the project and National Development Plan implementation periods will greatly facilitate the participation of the Odesypano's governmental partners in the financing and carrying out of the various development activities within the context of PDCs, since it is on the basis of the national plans that the budgets and work programs of governmental organizations are set. Second, because PDCs are always prepared over a five-year period, a project implementation period of six years will allow for the adequate completion of new PDCs and also take into account the agricultural cycle and schedule. 17. Estimated number of beneficiaries. The direct beneficiaries of the PNO4 will primarily include: (i) at the local level, all households in the rural communities in project areas (around 67,000 households, representing a population of about 318,000 inhabitants, mainly poor and small farmers with some livestock, and including marginalized groups such as jobless youth, women, and landless farmers); and (ii) at the sub-regional (délégation) and regional
3 “Project area” means selected administrative sectors within the governorates of Béja, Bizerte, Kef, Jendouba and Siliana. 4 “CDs” are committees that have not yet become GDAPs, but which prepare and implement a PDC.
- 6 - (gouvernorat) levels, institutions and organizations such as the Odesypano and its main partners involved in the project. These include the regional and sub-regional public administrations in the five targeted governorates, including their regional and local councils, as well as various governmental and non-governmental organizations.
D. Project Components
18. Project design and innovations. Although the project design, components, approach and activities will be largely similar to those carried out in the recently completed PNO3, a number of innovations aimed at enhancing and institutionalizing IPA practices, and at increasing the sustainability and development impact, will be introduced. To this effect, the proposed PNO4 would: (i) support continuous improvements, expansion and mainstreaming of the use of IPA introduced during the implementation of previous projects to increase further ownership among beneficiaries and hence the sustainability of investments; (ii) generalize the adoption of the imada as the geographic unit base for the preparation and implementation of PDCs; (iii) support the implementation of the pluri-ministerial framework agreement (Ministry of Development and International Cooperation/Ministère du Développement et de la Coopération Internationale (MDCI), Ministry of the Interior and Local Development/Ministère de l’Intérieure et du Développement Local (MIDL), and MARHP currently under preparation to formalize the use of IPA and the required partnerships within consultation frameworks between the Odesypano and other parties involved at regional and local levels; and (iv) pilot an experimental intensive partnership targeting the local administration of six selected delegations with the aim of ensuring adequate integration of their PDCs into the elaboration the delegation-based Economic and Social Development Plans/Plans de Développement Economique et Social (PDES). The PDES provide the basis for delegations’ contributions to the general five-year National Development Planning process, and as such represent a critical nexus to articulate bottom-up PDCs to top- down national and regional development planning. 19. The project has been prepared on the basis of a solid proposal and technical report completed by the Odesypano following extensive consultations with key stakeholders, representing the consensus of the main actors involved at the central, regional, local, and community levels. The project design thus emphasizes local community participation and coordination with local authorities and other partners. The Odesypano completed a comprehensive Preparatory Report in March 2010, capitalizing on the experiences and knowledge accumulated over the years from previous operations, which included the identification of project objectives, project areas, beneficiaries, components, methodology, implementation frameworks, institutional arrangements, estimated costs, as well as a financial and economic analysis. The current PAD is directly aligned with this Report. Because the final selection of all project investments, except for the technical assistance to the Odesypano and its partners (see below in Component 1 description), will depend on local community demands within the context of PDC preparation, the scope of the indicative investments and activities presented below could vary during project implementation. Furthermore, it will be important during the preparation of PDCs to ensure that all production-oriented investments, mainly the provision of agricultural advisory services, support to income-generating activities, and the construction of new rural roads, are formulated while taking into account the availability of existing and/or potential markets. This will result in higher financial and economic returns and
- 7 - consequently will help secure the sustainability of project investments beyond the implementation period.
20. Component 1: Institutional support and technical assistance for PDC preparation and implementation in the project area (total cost USD 4.97 million or 8.7% of total project cost). The overall objective of this component is to strengthen the institutional and organizational capacities of all the main development partners involved in project implementation, as well as to improve their methodological tools and operational practices. Partners include community grass- root organizations, the project implementing agency (Odesypano) and its partners (governmental and non-governmental organizations). More specifically, the component will support capacity building and technical assistance aimed at these entities for the purpose of enhancing their participation and improving their effectiveness in the planning, preparation, implementation and Monitoring and Evaluation (M&E) of PDCs and Annual Program Contracts /Contrats Programmes Anuels (CPAs), as well as fostering the mainstreaming of IPA in local development processes. This component will finance three sub-components: (i) Support to grassroots organizations (Local Grassroots Organizations/Organisations Locales de Base [OLB]): OLBs are crucial because they serve as an interface with the public administrations and are critical to the durability of the project achievements and to community empowerment. Strengthening will consist essentially of a customized combination of practical training (including roundtables and visits to exchange experiences), accompaniment, technical assistance, and logistical support in the form of equipment/materials; (ii) Support to selected partners: The Odesypano will be operating in close collaboration with other development promoters, including governmental (regional/local authorities) and non-governmental organisations in the Northwest (see Section III B below for a more detailed description of these partners). These development partners are necessary for complementing the Odesypano's realizations and amplifying its impacts, and, in the case of the public administrations, for ensuring the sustainability of the community development results generated.Strengthening these partners will comprise information/awareness seminars, methodological training (in project formulation, IPA, participatory planning, M&E, etc.) as well as learning trips and visits. In order to promote further partnership mechanisms, the project will also provide a limited number of able administrations with computerized database systems for M&E and intensive methodological training; (iii) Support to the Odesypano: In addition to consolidating the institutional improvements already achieved during the PNO3, a particular focus will be placed on expanding and deepening successful partnership mechanisms already in place. Support will include: (i) various consultant services, such as a sociologist to complement multidisciplinary teams involved in PDC preparation, communication expertise to develop and implement an operational communication strategy, and specialists to assist in the development of a mid- to long-term strategy to further the institutionalization of the IPA, including the preparation of a possible future post-PNO4 operation; (ii) specialized training and capacity building (in technical, administrative, fiduciary and other fields such as community development, IPA, M&E, and environmental and social safeguards); and (iii)
- 8 - the purchase of additional equipment/materials (including vehicles in support of interventions in new areas). 21. Component 2: Support for agricultural and pastoral production and income- generating activities in the project area (USD 4.71 million or 8.2% of total project cost). The overall objective of this component is to promote more diversified and better-performing agricultural and pastoral production systems (mainly crops and livestock activities with higher yields and more added value) as well as to assist vulnerable groups (primarily women, young people, and landless) in promoting profitable and sustainable income-generating activities/activités génératrices de revenu (AGRs). More specifically, this component will aim to increase and diversify various on- and off-farm AGRs through improvements in production techniques and practices, and access to markets while rationalizing natural resources as much as possible. All activities indicated hereunder are meant to be part of PDCs that will be prepared and executed using a participatory, integrated, and partnership-based approach, associating the communities with diverse actors in development and natural resource management. The details of their formulation will therefore depend on the needs and expectations of the populations involved. The four sub-components are: (i) Agricultural advisory services to producers consisting of the provision of technical counselling to farmers including the dissemination of climate resilient practices, coupled with the preparation of improved technical reference manuals (référentiels) and the execution of applied research and field demonstration programs. In line with the MARHP's present strategy, particular attention will be paid to the promotion of organic products, derived from more environmentally sound practices, and for which there are fast growing markets in Europe; (ii) Support for livestock development mainly in genetic improvements and animal health. Planned activities would include: (i) the acquisition of genitors (bulls, rams and goats); the (ii) provision of implants for breeding period synchronization and monitoring; (iii) conservation activities for endemic breeds; (iv) animal health development (including parasite management, provision of veterinary products for pregnancy cycles and infertility control, training for private advisers); and (v) beekeeping development (specialized training and financing for packaging, labeling and certification); (iii) Rehabilitation or construction of small-scale irrigation schemes which would also include other water supply structures (streams and wells) to further improve household incomes. The scope of the work will depend on the needs expressed during PDC preparation, but indicatively, the equivalent of around 150 ha of small-scale irrigation schemes, as well as the rehabilitation and construction of nearly 100 spring water catchments and construction of two wells are estimated under the project. These schemes are very much in demand but should in no way substitute for simpler and less costly water collection catchments whenever possible (see also water conservation works in Component 3 below); (iv) Promotion of income-generating activities (AGRs) consisting of two types: (i) micro- projects for small-scale farmers and farmers belonging to vulnerable categories (such as young farmers, women, landless people). These micro-projects, for which the investment is around US$ 5,0005, include initiatives such as sheep or goat fattening, beekeeping,
5 The median loan amount provided per rural investment is about USD 1,000. These funds originate from the BTS.
- 9 - small ruminants, and handicrafts; and (ii) small rural enterprises such as agricultural produce processing and marketing and non-wood forest products led by groups of small- scale farmers. The Odesypano will support the implementation of about 1,000 micro- projects by providing training and technical assistance to beneficiaries, thus enabling them to obtain credit from the Tunisian Bank for Solidarity/Banque Tunisienne de Solidarité (BTS), through Local Development Associations/Associations de Développement Local (ADLs)6. The Odesypano also plans to assist at least 10 small-scale rural enterprises for the purpose of demonstrating the viability of linking groups of micro-entrepreneurs/farmers to new and promising markets and to test the organizational form7 these linkages could possibly take. In particular, the Odesypano will assist the above enterprises with the identification of market opportunities and commercial partners. It will also carry out feasibility studies for the business plans of these enterprises (including environmental screening) and support enterprises during the implementation of their ventures with training and technical assistance in partnership with other actors (Business Centers/Centres d’Affaires, the Northwest Development Office/Office du Développement du Nord Ouest, the Agency for Employment and Independent Work/Agence de l’Emploi et du Travail Indépendant). Where small farmer groups do not have access to credit from the BTS8, the Odesypano will provide funds to these enterprises through the GDAPs. This funding mechanism is described in more detail in Annex 4. 22. Component 3: Consolidation, protection and management of natural resources in the project area (USD 26.50 million or 46.4% of total project cost). The overall objective of this component is threefold: (i) to expand and improve the vegetation cover in targeted project areas, including rangelands, pastures and tree plantations; (ii) to improve the status of selected forested areas through participatory forest management plans implemented within the framework of PDCs; and (iii) to promote more sustainable natural resource management techniques and practices. This will be achieved through soil and water conservation works, improvements to pasture and rangelands in degraded areas, and agro-forestry development as identified in the PDCs. The four sub-components are: (i) Soil and water conservation works mainly to prevent and manage soil erosion and ravine formation through: (i) the construction of contour thresholds (mainly stones) and ados (ditches and embankments) as well as stone sills acting to slow down runoff and trap sediments; and (ii) the “vegetalization” of banks and ravines. The focus will be on small works that the local population can control and maintain. Small basins will also be constructed for tree crops in order to improve soil moisture and therefore crop yields. These works are for indicative purposes only and the final choices will depend on the beneficiaries' needs and priorities as expressed in the context of the PDCs;
6 Under the PNO3, the Odesypano supplied technical assistance to about 800 small micro-projects that obtained loans from ADLs. Some 60 percent of those investments are still operating and performing well. Similarly to the PNO3, the microcredit will be supplied by ADLs which, in turn, receive credit lines from the BTS. See Annexe 4 for a brief description of the micro-projects funded under the PNO3. 7 The Tunisian law does not open many opportunities for small-scale farmers to organize in groups for business purposes (see Annex 4). 8 The BTS provides loans at low interest rates through the ADLs. This credit at a 5 percent interest rate is limited nationwide and ADLs spread out the available credit to as many people as possible, often based on social rather than business criteria. A denial of credit from the BTS or ADLs does not necessarily mean that the business proposal is not viable.
- 10 - (ii) Pastoral and sylvo-pastoral improvements would include: (i) the establishment of sylvo- pastoral areas (including direct seeding in pastures located in clearings within forest areas or in buffer zones, improved fodder plantations, etc.); (ii) the establishment of perennial pastures (including the organization of users, tillage and seeding); and (iii) rangeland improvement (including fallow areas and reseeding); (iii) Plantation of trees and activities in forest areas. This sub-component will support: (i) tree planting outside forested areas; and (ii) activities within the forested areas themselves including sub-projects within forested areas as approved in PDCs and that are compatible with Forest Management Plans, aiming to provide additional revenues to forest dweller communities, reduce the pressure on forest resources and facilitate the populations' participation in preserving these resources. These include the plantation of various non- timber tree species with multiple uses, the installation of sylvo-pastoral perimeters, forestry maintenance works by communities (collection of dead wood and minor scrubs, regular clearing and maintenance of firebreaks), and the development of AGRs and livelihood activities centered on the promotion of forest resources (beekeeping and honey production, medicinal and aromatic plants, essential oils, collection of mushrooms, wildflowers, and wild capers, etc.). These activities are expected to be small-scale and geared toward improving the livelihoods of forest dwelling communities. This sub- component will also support the provision of technical advisory services, logistical support and training to the General Directorate for Forests/Direction Générale des Forêts (DGF) for the preparation or updating, and implementation of the participatory Forest Management Plans mentioned above, and; (iv) Land consolidation operations. These operations aim firstly at reducing land tenure constraints to carrying out soil and water conservation works and to secondly pave the way for crop intensification. The operations consist essentially of evaluating, in terms of size and productivity, individual farming lands that are presently highly fragmented and scattered, and help the owners swap between themselves equivalent plots so as to form larger units. The project will finance information and awareness raising sessions, manage the exchange of plots between owners, over an aggregated total of approximately 12,000 ha, as well as the construction of access tracts over some 32 km. Previous experience shows that such new tracts become necessary to access the reconfigured plots once they have been consolidated into larger units. The average size of consolidated plots has been around 1.72 ha under the PNO3.9 23. Component 4: Improvement of basic rural infrastructure in the project area (USD 20.98 million or 36.7% of total project cost). The overall objective of this component is to improve the general access to basic infrastructure for communities located in remote areas, mainly in terms of rural roads and potable water. This component would therefore support the rehabilitation and/or construction of rural roads and individual or communal potable water systems10. Two sub-components will be financed:
9 See Annex 4 for a brief description of the land consolidation operations under the PNO3. 10 As was the case under the PNO3, the project will not finance basic infrastructures such as school and health centers or clinics that fall under the jurisdiction of other line ministries. Similar demand for investments in the PDCs that are beyond the mandate of Odesypano and MARHP will be transmitted to the relevant ministry for consideration and eventual financing.
- 11 - (i) Rehabilitation and construction of rural roads. Based on the experience of the PNO3, estimations of civil work include (i) the construction of short segments of rural roads (less than 3 km on average for an aggregate amount of around 200 km) linking villages (douars), mainly in new areas with first generation “basic” PDCs; (ii) spot rehabilitation work of around 580 km of rural roads in areas with second generation or “consolidated” PDCs to improve accessibility and usage. In addition, this sub-component will also finance the preparation of local master plans for the programming of rural roads in new areas covered by the project, with a view to improving access for communities that are now practically isolated; (ii) Improvement of access to potable water through the construction and/or rehabilitation of individual storage tanks/cisterns and of communal water supply systems. Indicative estimates are that 570 water tanks and nine potable water connection systems are planned for selected communities over the six years of the project.
Table 1: Summary of Basic Project Costs and Financing per Component Indicative % of Bank % of Component Costs Total financing Bank (US$ m) (US$ m) financing 1. Institutional support and technical assistance for 4.97 8.7 3.00 60.4 PDC preparation and implementation in the project area 2. Support for agricultural and pastoral production and 4.71 8.2 3.68 78.1 income-generating activities in the project area 3. Consolidation, protection and management of natural 26.50 46.4 19.04 71.8 resources in the project area 4. Improvement of basic rural infrastructure in the 20.98 36.7 15.88 75.7 project area TOTAL 57.16 100 41.60 72.8
E. Lessons Learned and Reflected in the Project Design
24. The design of the proposed project takes into account lessons learned from the PNO3 and other similar operations in Tunisia and elsewhere, and from the Independent Evaluation Group’s Evaluation of Community-based and Community-Driven Development11. These include: a) The use of local and community-based IPA is of great value to all stakeholders. In particular, the practice of IPA leads to more tangible results compare to a classic sector approach. Direct involvement of populations allows for better intervention formulation and enhanced sustainability. Moreover, IPA has helped public administrations move from an often confrontational relationship with the communities to a more productive cooperation based on mutual trust. IPA has also helped communities progress from a status of passive recipient to a role of active participant in their own local development. Given these positive results, the PNO4 will aim to support the Odesypano not only in improving its practice of IPA but also in disseminating IPA among all its development partners.
11 World Bank 2005 “The Effectiveness of World Bank Support for Community-Based and Driven Development”. Independent Evaluation Group. Washington, D.C.
- 12 - b) Developing and deepening partnerships with other local development actors is critical. Under the PNO3, partnership mechanisms became part of IPA, essentially by directly involving other development actors (governmental organizations and NGOs) in PDC preparation, financing, and implementation, as well as using regional and local administrations for the purpose of validating the process and ensuring its functioning. Implemented partnerships were successful under the PNO3, and enabled the mobilization of additional and complementary investments, which represented on average 35 percent of all PDCs investments costs. Moreover, official authorities in the public administrations have repeatedly expressed their satisfaction with the partnership process and requested that it be further institutionalized. Partnership mechanisms will therefore be consolidated and expanded under the PNO4 through a framework agreement between the main governmental organizations involved. c) Development of PDCs at the administrative sector level is feasible and advisable. The PNO4 can also capitalize on another lesson from the PNO3: the Odesypano can now prepare participatory PDCs at the administrative sector level, therefore covering a larger socio-territorial unit area without losing significant social cohesion among communities. The Odesypano has developed more effective methodological tools and grassroots organizations are growing in strength. Furthermore, sector-level PDCs present substantial advantages. First, Odesypano governmental partners can more easily participate, since their operations are normally planned at the sector level in their work programs. Second, PDCs can then be integrated into regional PDES, prepared every five years by the administrations. These plans are thereafter aggregated to make up the country's national development plans at the local (delegation) and regional (governorate) levels. A direct link between PDCs and administration plans will both accelerate the institutionalization and mainstreaming of partnership mechanisms and reinforce their sustainability over time. d) Expansion into new geographic areas needs to take into account the human resources limitation of the Odesypano. Under the PNO4, the Odesypano will cover 113 administrative sectors representing close to 49 percent of the mountainous and forested areas of the Northwest region and representing an approximate 30 percent increase in project geographical coverage. Given the fact that Odesypano human and financial resources are finite, the Office cannot cover all sectors continuously with the same intensity and time allocations. However, empowering community grassroots organizations to fully take up responsibility for organizing PDC preparation and execution, and reinforcing their capacity to enable a progressive alleviation of the role and intervention of the Odesypano and other administrations, with the support of public administrations, has proved difficult. The PNO4 will focus on strengthening grassroots organizations as well as regional and local administrations. This will eventually allow for a transfer of some of the responsibilities now being fulfilled by the Odesypano and hence free up some of its resources to be subsequently redeployed to cover new areas. e) Combining soil/water conservation with income-generating opportunities increases participation and effectiveness. PDC execution under the PNO3 yielded two important lessons from an environmental perspective. First, beneficiary participation in soil and water conservation works on private land is stronger when these works are combined with AGRs (both on- and off-farm). Second, land consolidation operations, when carried
- 13 - out within the framework of PDCs, are very useful for paving the way for subsequent soil and water conservation works. These lessons will be used when preparing PDCs under the PNO4. f) Designing the AGRs pilot. Regarding the pilot on AGRs, the following specific lessons have been taken into account in the sub-component design and will guide implementation: i. Clearly defined “rules of the game” that orient local participation, define technical criteria for business plan preparation and subproject selection and delineate the responsibilities of all stakeholders, can promote greater transparency in project implementation and reduce the probability of discretionary decision- making. The final approval of support would be guided by the principle of additionality, by giving preference to such viable sub-projects that would not succeed in securing profitable and sustainable commercial alliances without project assistance. ii. Building capacities for business management and administration among rural producer organizations is a key element for successful long-term productive alliances. The project will address this through training and capacity-building, as well as the preparation and dissemination of a positive list of technical service providers from which these organizations can select needed assistance for business plan design and subsequent subproject execution. iii. Productive alliances are viable based on a transparent scheme with proper incentives. Successful productive alliances can be achieved when three key elements are present: (a) a clear and shared objective and sound balance of power and governance among all stakeholders; (b) a shared risk mechanism; and (c) commitment to market mechanisms. g) Need for effective communication capabilities. A carefully designed and tailored communication strategy along with its proactive implementation before and throughout project implementation is critical to increase effectiveness, acceptance, and participation. h) Finally, the need to strengthen operational guidance and oversight for the application of Bank safeguard and fiduciary compliance. To this end, Odesypano, as well as OLB and other partners, will receive adequate training and supervision in social and environmental safeguards. In addition fiduciary safeguards that performed well under the previous operations will be maintained.
F. Alternatives Considered and Reasons for Rejection
The following alternative design options were considered for the PNO4: 25. Expansion of the project to fully cover the mountainous and forested areas of the Northwest region. Such an extensive expansion under the PNO4 was rejected during project design, as the expansion of the Odesypano into new geographic sectors is contingent upon a careful management of its limited human resources (retirement, attrition, and new hires). It was finally concluded that under the PNO4, the Odesypano would increase its coverage from 88 to 113 sectors. The Odesypano will ensure that adequate capacity for project implementation and
- 14 - this geographic expansion is maintained throuh a gradual retirement process and the hiring of new staff to replace most of these departures. 26. Blended IBRD operation with GEF funding for climate change. This option was not pursued, given the priority accorded to limit the time gap between the two PNO3 and PNO4 operation and the interest to have the new loan effective and fully operational as soon as possible in early 2011. 27. Additional Financing and/or Repeater Project. The use of these modalities were not pursued given: (a) that under the PNO3, the Government decided on an early cancellation of 8.5 million Euros or 24.5 percent of the original loan amount due to a substantial appreciation of the Euro relative to the U.S. Dollar and Tunisian Dinar during project implementation; and (b) the time needed for the project concept to mature at the Government level and the resulting time gap between the closing of PNO3 and PNO4 preparation. These conditions favored the preparation of a new project. Furthermore, the PNO4 presented the opportunity to introduce innovative design features that departed substantially from that of the PNO3. 28. Entrusting project implementation to the CRDA in the governorate of Jendouba. In Jendouba where the proposed project will intervene alongside the PGRN2 (for which the executing entity is the CRDA), the option of entrusting project implementation to the CRDA of this governorate was considered but not pursued. This would have defeated the Government’s objective of mainstreaming the IPA process into its various administrative institutions while ensuring that they learn from each other and share experiences and best practices. In addition it is also recognized that the Odesypano and the CRDAs are to play complementary roles in servicing different target areas and beneficiary groups while ensuring adequate levels of coordination.
III. IMPLEMENTATION
A. Partnership Arrangements (If Applicable)
Not applicable. B. Institutional and Implementation Arrangements
Implementation period: Six years. Executing entities 29. The PNO4 will follow the same institutional arrangements as the PNO3. On behalf of the Government of Tunisia, the Odesypano, under the MARHP, will be the governmental executing agency responsible for project implementation. An inter-ministerial Committee/Comité National de Coordination (CNC) chaired by the MARHP will serve as the overall steering committee of the project. Other entities involved in project implementation include: the regional and local councils of the regional and local administrations, locally based organizations or OLBs (formalized GDAPs and CDs, and various other partner agencies or entities)12. The role and responsibilities of each of these entities are described below (and in more details in Annex 6).
12 The partner entities include: the Agricultural Lands Agency/Agence Foncière Agricole (AFA), CDRAs, DGF, Office of Livestock and Pasture /Office de l’Élevage et des Pâturages (OEP), Agricultural Extension and Training Agency/Agence de Vulgarisation et de Formation Agricole (AVFA), CITET, and various NGOs.
- 15 - 30. Steering Committee. The CNC established for the PNO3 under the chairmanship of the General Directorate for Financing, Investment and Professional Organization/Direction Générale du Financement, Investissement et Organisation Professionnelle (DGFIOP) of the MARHP will continue under the PNO4 to oversee general project implementation and ensure that the directions chosen, actions undertaken, and results achieved are in accordance with relevant project documents and agreements. More specifically, the CNC will ensure that action plans and annual budgets prepared are well in line with project objectives and with other regional/local programs and investments. Other CNC members will include the MDCI, MIDL and Ministry of Finance/Ministère des Finances (MdF), as well as other relevant General Directorates of the MARHP (including the DGF, and the General Directorate for Planning and Conservation of Agricultural Lands/Direction Générale de l’Aménagement et Conservation des Terres Agricoles [DGACTA]). 31. Implementation Agency - Office de Développement Sylvo-Pastoral du Nord-Ouest (Odesypano). The Odesypano, under the oversight of the MARHP, will have direct and overall responsibility for project implementation through its central and regional directorates and offices. The Odesypano is a state-owned, autonomous entity created in 1981 (Law 81-17) and a Non- Administrative Public Enterprise/ Etablissement Publique à Caractère Non-Administratif (EPNA) since 1996, with the main mandate of protecting vulnerable ecosystems and developing rural infrastructure in the Northwest region of Tunisia. It is a decentralized structure headquartered in Béja with regional jurisdiction to implement national development policies in the five governorates of Béja, Bizerte, Jendouba, Le Kef, and Siliana. As the governmental executing agency, the Odesypano will have sole responsibility for all project management and coordination, technical, administrative, fiduciary and safeguard-related matters. More specifically, the Odesypano’s main responsibilities include: (i) project coordination, administration, and management; (ii) technical implementation of all components; (iii) overall fiduciary (financial and procurement) and safeguard management; (iv) project monitoring and evaluation, including maintenance and updating of the project Management Information System (MIS) and Geographic Information System (GIS); and (v) project reporting and auditing. Proceeds of the loan supporting the PNO4 project will be made available to the Odesypano by the Government through budgetary allocations. 32. Internally, the existing Odesypano Executive Board/Conseil d’Entreprise will be used as a coordinating committee for the implementation of PNO4 activities. The Board is chaired by the Odesypano’s General Director and includes representatives from the MARHP, MDCI and MdF, as well as from the regional and local public administrations of each of the five governorates, and the Tunisian Union for Agriculture and Fisheries/Union Tunisienne de l’Agriculture et de la Pêche (UTAP). The Odesypano central directorate, its four regional directorates and its regional branch in Siliana, will support the communities with PDC and CPA preparation, execution, and M&E, as well as promote partnerships at the regional and local levels and facilitate the integration of PDCs/CPAs in other partners’ development programs and investment plans. The Project Coordinator for the PNO3, who is a senior professional, will continue to assist the General Director with project implementation and monitoring. Specifically, the Coordinator will be responsible for preparing periodic work programs, methodological tools for monitoring, and the various progress reports required by the CNC and the World Bank as co-financers. The Coordinator will also ensure efficient coordination with Odesypano partners, particularly on the exchange of information and organization of common activities. At the local level, the Odesypano Advisory Services and Organization Centers/Centres
- 16 - d’Animation et de Conseil (CAC), in close collaboration with OLBs (particularly GDAPs), will be in charge of coordinating project activities in the context of the preparation, validation, and implementation of PDCs covering their respective administrative sectors. 33. Local grassroots organizations (OLBs). OLBs (GDAPs and CDs), as representatives of their respective populations, will represent the institutional interface and first interlocutor for all public authorities in terms of planning and programming of interventions in the sectors involved. They will be expected to: (i) participate in the whole PDC preparation process for their sectors (development needs assessment and prioritization); (ii) participate in the implementation of PDCs through CPAs negotiated within the CLD; and (iii) coordinate more intensively the development of their respective sectors with support of the Odesypano and consultative processes. 34. Existing Regional Councils and Local Development Councils constitute the formal consultative channels and institutional platforms at the regional and local levels for PDCs/CPAs validation and approval, as well as integration in and articulation with (including financing and execution) other regional or local development programs and investment plans. (i) Regional Councils/Conseils Régionaux (CRs). The CR’s territorial jurisdiction is the governorate. It is chaired by the Governor, the highest regional authority, and is the formal institutional channel where PDCs/CPAs are submitted by the multi-sector planning commission (the most appropriate body, see below) for official validation. Partnerships will be formed at this level, along with the allocation and distribution of financing for activities, programming and budgeting of these activities, the search for complementary financing, and negotiations (through their respective multi-sector commission and technical committee for monitoring). (ii) Local Development Councils/Conseils Locaux de Développement (CLDs). The CLD’s geographic jurisdiction is the delegation (sub-regional level). CLDs are chaired by delegates (the Governor's representatives at the delegation level) and are responsible for examining issues pertaining to the socio-economic development of their delegation as well as local development programs and projects. CLDs facilitate the mobilization of partners and complementary financing at the local level, with a view to ensuring the coherence and coordination of project activities with other local programs and projects. CLDs will be supported during the organization of the preparation, validation, and execution process, particularly in order to play a more advanced role in terms of M&E for the PDCs/CPAs under the PNO4. 35. Other governmental partners. The regional directorates of technical ministries will intervene on the basis of coordination by the CR (in reference to the inter-ministerial convention/circular). For each partner, the modalities and mechanisms to adopt and follow for the planning, programming, carrying out, and monitoring of the planned investments aimed at the development of administrative sectors under the PNO4, will be specified. The regional directorates are expected to participate in PDC and CPA preparation, financing, and execution, within the limits of their mandates and respective attributions. They will also be called upon to provide all the information pertaining to the outcomes and impacts of their activities in the context of CPAs and to participate in periodic discussions within the CLDs and the CR on questions relating to programming, budgeting, and implementation. The CRDAs, DGF,
- 17 - DGACTA, OEP, and AFA are all expected to collaborate on the execution of investments and programs. Figure 1: Institutional Arrangements under the PNO4
Steering Concertation Implementation
National MARHP Coordination Committee (CNC) MDCI DGFIOP of the National MARHP MdF
Governorate Odesypano Regional Council Executive Board Odesypano Partners Multi-sectoral
Regional PNO4 Project Planning Coordinator Commission
Local Odesypano Development Regional Offices
Local Council Community OLBs (GDAPs, CDs)
36. Other non-governmental partners. The NGOs, ADLs, and the BTS involved in the development of areas within the sectors and delegations covered by the PNO4, will implement their programs and activities according to the modalities in the framework agreement concluded with each governorate, as with the governmental partners. They will participate in the CLD and CR consultative meetings and prepare their development interventions and programs within the PDCs/CPAs in collaboration with other partners. Consultancies, private firms, individual consultants, and small-scale workers (tâcherons) will perform specific tasks on a contractual basis. 37. Financing Scheme. The project will support the preparation of participatory PDCs and CPAs in consultation with communities, local/regional authorities, and other partners. Activities and investments prioritized in PDCs will be funded as appropriate directly by relevant sector ministries, governorates, and delegations, or main partner agencies from their own budgets (for instance roads by the Ministry for Equipment, schools by Ministry of Education, etc.). The PNO4, for its part, will only finance relevant activities for PDCs/CPAs in the areas of agricultural and pastoral production, related income-generating activities, consolidation, protection, and sustainable management of natural resources, and improvement of basic rural infrastructure (primarily rural roads and water supply). A community counterpart contribution is required for PNO4-supported sub-projects. Funding by the partner agencies mentioned above are not accounted for as project co-financing (as these are still to be determined depending on which investment sub-projects are selected in the PDCs). See Annex 6 for further details.
- 18 - C. Monitoring and Evaluation of Outcomes/Results
Monitoring 38. The Odesypano’s Directorate of Planning, Monitoring and Evaluation/Direction de la Planification et du Suivi-Evaluation (DPSE) will be responsible for the M&E of the project. The Odesypano has a fairly well-developed framework to monitor project progress and results. Sizable investments in staff training, production of methodological tools, and provision of logistical means provided under the previous PNO3 operation have helped institutionalize its MIS which is also supported by a well-functioning GIS. 39. The Odesypano’s central and regional directorates and branches, as well as field extension agents will collect technical data on the progress of project activities and send the information to the DPSE through a web-based database management system. The monitoring system will facilitate the implementation and coordination of project activities at the local and regional levels and ensure an agile information flow from the field to all management levels. The PDCs and CPAs also contain indicators to be monitored by both the GDAPs and the project. At the end of each year, the results of the completed CPAs will be assessed jointly by the communities with the technicians involved. The results will be inputted into the monitoring system and consolidated on a yearly basis at the regional and national levels to provide an initial assessment of project results. 40. The DPSE will also monitor the project’s intermediate outcome (result) indicators (see Annex 3) and provide an update of these indicators to be included in the project progress reports. Each progress report will cover the period of one calendar semester and will be submitted to the Bank no later than sixty (60) days after the end of the period covered by such a report. Monitoring of the other management indicators will be done through field reports from extension agents and through the PDCs developed during the process. Evaluation 41. The Odesypano will carry out a project evaluation at mid-term and at the end of the project. The Odesypano has no baseline data on the socio-economic conditions of the sectors covered under the project. Therefore, the Odesypano will hire a consulting firm or university to collect data on the evolution of a composite index of socio-economic conditions at the administrative sector (imada) level within the first six months of project effectiveness, at mid- term, and at the end of the project. The Regional Office of the National Institute for Statistics/Institut National de la Statistique (INS) will advise the Odesypano on the terms of reference of the consulting firm, review the survey methodology, and carry out some quality control of the surveys. The preparation of the PDCs will also provide some baseline data for the various administrative sectors (imadas) involved. 42. The Odesypano will carry out yearly participatory evaluations of PDC preparation and implementation mechanisms with a sample of GDAP members, administrative sector partner institutions, and beneficiaries. Moreover, at the mid-term and at the end of the project, the Odesypano will contract an independent consulting firm or university to prepare a report on project performance using available data collected through the monitoring system and through the evaluation of socio-economic indicators. Terms of reference of the mid-term and end of project reviews will be agreed upon with the Bank and included in the Operations Manual.
- 19 - D. Sustainability
43. The Government is strongly interested in and committed to actively pursuing the promotion of IPA-based community development in the Northwest. To this effect, and as an interim measure until the PNO4 is launched, the Odesypano has been allocated additional budget to maintain its operations. Moreover, budget resources were also earmarked in the 11th and 12th National Development Plan to finance the counterpart funding needed for the PNO4. Co- financing from Odesypano partners is also forthcoming. As mentioned, partners contributed an average of 35 percent of all PDC investments costs under the PNO3. This level of contribution is expected to be increased to the new and reasonable target of 40 percent under the new project. 44. The sustainability of PNO4 achievements depends not only on the demonstrated financial commitments of principal stakeholders but also on the continuing involvement of the highest authorities at the regional and local levels. Through the partnership mechanisms in place, the CRs and CLDs, which serve as the executive boards of the regional and local administration, systematically validate and ensure the participation of all partners in PDC preparation, financing, and implementation. This council function is fulfilled through bilateral agreements with the Odesypano and will soon be reinforced by a framework agreement with all main ministries involved (see Section IV). Long term GDAP institutional capability is also an important factor for achieving sustainability of PNO4 interventions. Strengthening these associations will be one of the main focuses of the PNO4 and, in addition, the MARHP has already initiated roundtable discussions on adapting the legal status of GDAPs to their future needs.
E. Critical Risks and Possible Controversial Aspects
45. The main risks that could impede the achievement of the PDOs and the success of its main components are summarized in the table below:
- 20 - Risk Ratinga Mitigating Measures Residual Risk To PDOs - The Government falters on its commitment M The Government has decided to implement L to mainstream the IPA agenda. IPA in a growing number of governorates - The MARHP lacks the central decision- and sees the PNO4 as an opportunity to making power to push for and decide upon demonstrate how this approach can be institutional and policy reforms. mainstreamed, regardless of the source of - Uneven levels of support and financing. The Governors have indicated coordination among relevant line strong interest for this type of local planning ministries (MARHP, MIDL) may slow and may intervene and show their support for down or delay the adoption and such financing. mainstreaming of policy and institutional reforms to foster the bottom-up approach to local development.
The Odesypano and its regional partners are M The approach was successfully and broadly L unwilling to participate or are uncomfortable tested during the PNO3. Key project with altering their work habits or conditions, partners from all governorates were in the transition from the current sectoral consulted and actively participated in approach to the multi-disciplinary approach current project preparation. They indicated a required for IPA. strong interest in collaborating in its implementation. Governors have also pledged their support and willingness to facilitate this collaboration. Reliance of project design on partnerships M The Government is committed to IPA. As L between the Odesypano and other key demonstrated under the PNO3, this risk can entities (national, regional and local) may be mitigated through proper consultation, prove overly challenging and delay sensitization, and training. implementation.
The Government does not provide M The level of political commitment to the L sufficient and timely resources for the project objectives is high. The budget for public goods aspects of services provided the project has been earmarked in the by the Odesypano and its regional partners. Government’s five-year National Development Plan (2010-2014). Climate variability (prolonged droughts, S - Systemic monitoring of weather M violent floods) may affect the natural forecasting and evaluation of water resource basis on which investment availability. decisions are made and/or delay - Climate change adaptation measures and implementation. alternative income-generating activities proposed for the project also intend to reduce the vulnerability of poor rural communities to climate impacts. The Odesypano’s ability to adequately S The authorities are well aware of this M service an expanded area may be potential challenge and of the need for hampered by the numerous retirements of proper and effective human resources experienced staff expected in the coming management to ensure that the size and three to five years. composition of the workforce remains adequate. This matter was taken into account during project preparation, and assurances were given to this effect. To Project Outputs Insufficient demand from M - Communication and awareness raising, L beneficiaries/communities for project demonstrations, agricultural extension
- 21 - activities to generate PDCs and CPAs for services, technical training, and assistance investments, GDAPs, adoption of will be provided to communities to support sustainable land and water conservation sustainable natural resource management, initiatives, etc. Beneficiaries/communities particularly land and water, and income are unwilling to try unfamiliar approaches. diversification activities, and to build capacity in community associations for empowerment in local decision-making and planning. - Demonstration activities, feasibility studies and the communication strategy will address options and concerns of farmers. Monitoring and evaluation of this project M Training at an early stage of project L may be difficult as the baseline implementation at both Odesypano and sub- data/information needs to be regional levels. Using available M&E confirmed/collected for some indicators at facilities created by the PNO3 if applicable. the beginning of project implementation. Financial management procedures are M - The Odesypano has extensive financial L foreseen to be straightforward and management experience with Bank-financed comparable to those used under the PNO3, operations. Lessons from these operations which performed well. would be adopted in the final design of the PNO4. - Independent annual audits and close financial management supervision. Lengthy procurement processes at the S Adequate planning, utilization of standard L national level may delays activities. bidding documents used under PNO3, and continuous staff training in all local agencies would be conducted before and during implementation. Overall Risk (including Reputational Risk) M a Rating of risks on a four-point scale – High, Substantial, Moderate, Low – according to the likelihood of occurrence and magnitude of potential adverse impact.
F. Loan Conditions and Covenants
Effectiveness:
a) The Borrower and the Project Implementing Entity have adopted the Operations Manual, satisfactory to the Bank. Covenant:
a) The Borrower shall promptly make the proceeds of the Loan available to the Project Implementing Entity through budgetary allocations. b) The Borrower shall ensure that the Project is carried out in accordance with the provisions of the Anti-Corruption Guidelines13. c) The Project Implementing Entity shall: (i) carry out the Project in conformity with the provisions of the Safeguard Diagnostic Review (SDR); the Framework Document for Environmental and Social Protection/Document Cadre de Protection Environnementale
13 “Anti-Corruption Guidelines” means the “Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants”, dated October 15, 2006
- 22 - et Sociale/ (DCPES) and the Resettlement Policy Framework (RPF); (ii) inform the Bank of any developments in the Environmental Legislation applicable to, and that may affect the implementation of, the Project; and (iii) not amend, suspend, abrogate, repeal or waive any provisions of said SDR, DCPES and RPF without prior concurrence of the Bank (see Safeguards section and Annex below). d) The Implementing Entity shall ensure that: (i) prior to carrying out of any Project activities not identified, assessed, nor included in the DCPES, such activities shall be subject to an Environmental Assessment (EA), as described in the DCPES; and (ii) mitigating and monitoring measures for impacts of said activities are carried out in accordance with the provisions of the SDR and the DCPES. e) The Project Implementing Entity will prepare and provide to the Borrower for transmission to the Bank, reports on the application of the provisions of the DCPES to Project activities. The Bank may provide comments as appropriate on said reports, notably to agree with the Project Implementing Entity on remedial actions to be taken by the Project Implementing Entity to achieve compliance with the SDR, the DCPES and the RPF. f) The Project Implementing Entity shall ensure that any activity under the Project, requiring land acquisition is carried out in accordance with the RPF.
IV. APPRAISAL SUMMARY
A. Economic and Financial Analyses
46. The Economic Rate of Return (ERR) is estimated at 17percent over 20 years, and the sensitivity analysis indicates that this rate is slightly more sensitive to declines in profits than to comparable cost overruns (see Annex 9). The quantified additional benefits for the project consist mainly of increases in agricultural production within project areas, through the improvement of cropping practices and the introduction of crops with a higher added value. All working assumptions for the calculation of benefits (farmers' adoption rates of improved technical packages over time, yield increases and prices according to crops, etc.) are derived from the long and practical experience of the Odesypano's regional offices in similar situations. In new remote areas, where the agro-ecological and socio-economic conditions are expected to be somewhat more difficult, the assumptions have been adjusted downwards accordingly. 47. The relatively high ERR is mainly explained by three factors: (i) the introduction of substantially improved agricultural technologies/practices through the provision of significantly strengthened advisory services to farmers; (ii) considerable increases in high value-added crops, essentially for horticulture and irrigated tree crops; and (iii) the establishment of improved rural infrastructure, resulting in a more efficient marketing of agricultural produce. The ERR is all the more satisfying as non-quantified benefits such as those discussed below are not included in the calculations. The ERR is not any higher than the estimated rate for the PNO3 (17 percent over 20 years at appraisal), which was also calculated on the same basis. This is because the PNO4 will have to deal with several new communities in both old and new areas, in addition to the already covered communities where consolidation will take place. A number of new communities are more remote and therefore present more difficult conditions.
- 23 - 48. Financial profit margins in the case of agricultural production are significant and essentially driven by improvements in cultural technologies/practices, particularly for high value crops. Moreover, the financial analysis of three typical off-farm AGRs, namely beekeeping, cattle breeding, and handicrafts, show attractive benefits. Nevertheless, in order to ensure sufficient financial viability, the preparation of improved technical reference manuals are planned at project start for use by field advisors and will include break-even point calculations for each type of activity (minimum production and/or price levels required). The AGRs envisaged under the project, particularly the three types indicated above, are very much in demand as their products are highly popular (e.g. honey, hand-made rugs, essential oils). The markets for these products are not only regional, but also central, since the main urban centers (Tunis, Sfax, etc.) are relatively close to the Northwest (less than a half-day drive). 49. Other benefits are very difficult to quantify, through these will probably be as important. First, improvements in soil/water conservation will reduce erosion and over time improve soil fertility. Second, investments in rural infrastructure, mainly roads and a potable water supply, will improve community living conditions. In particular, more accessible rural roads will facilitate supply of agricultural inputs and marketing of agricultural produce. Third, a substantial number of temporary and permanent jobs will be created, following a larger and more intense agricultural production, and through the civil works carried out under the project. Finally, a significant portion of project benefits will be in the form of institutional strengthening at both the regional and local levels.
B. Technical
50. The exact make-up of each PDC depends on both community development constraints and expectations. Plans are typically composed, though not exclusively, of physical outputs (land consolidation operations, tree crop plantations, and soil and water conservation and agro-forestry works), and the provision of services (thematic training, agricultural advice and customized support to micro-projects). These constitute the activities most requested by communities and are aligned with their most basic needs. These activities are also modest in size and well within the technical reach of the staff and beneficiaries involved, as evidenced by the experience of the previous PNO and PGRN phases as well as other integrated rural development projects in Tunisia. This has also been repeatedly confirmed by Bank supervision missions and occasional technical surveys.
C. Fiduciary
51. Financial Management. An assessment of the financial management capacity of the Odesypano was carried out during project preparation through meetings held with various representatives from financial, accounting, budget, and internal auditing departments of the Odesypano and also with the Odesypano regional directorate. The capacity assessment focused on ensuring that procedures and criteria are in place to ensure satisfactory financial management before any expenditure could take place and that mechanisms are in place to ensure adequate financial reporting as well as ex-post review after expenditures. The objective was to ensure that the funds will be used for intended purposes. The evaluation confirmed that the project will be implemented in Tunisia using the country-based system governed by budgetary legislation and will use the existing skills and human resources within the Odesypano.
- 24 - 52. The Project expenditures will be part of the Odesypano budget. The Odesypano uses an accrual accounting method as required by the Accounting System for Enterprises promulgated by Law 96-112 of December 1st, 1996. Odesypano financial statements are reconciled by December 31 of each fiscal year as follows: a balance sheet statement, an income statement, a statement of treasury flows, and financial statement notes. The information to produce Interim Unaudited Financial Reports (IUFRs) of the project will be extracted from the accounting system for the statement of sources and uses of funds. However, the MIS will directly produce the statements of commitments and payments for the period and cumulative by components, sub-components and by financing sources. The main risk identified during the evaluation was that a number of technical, financial, and accounting staff of the Odesypano will go into retirement during the next five years. This risk is mitigated by the following: (i) the departure to the retirement will be gradual; and (ii) the Odesypano will hire new staff to replace most of these departures to the retirement. Based on the assessment findings, the Financial Management systems assessed are satisfactory to the Bank, and the residual financial management risk is rated as low. 53. Procurement Planning. The Unit is used to preparing the procurement plans for the previous, similar projects PNO1, 2 & 3, the program of activities, and the Procurement Plan to be communicated to the National Observatory of Public Procurement/Observatoire National des Marchés Publics each year in January. The Directorate for Financial Affairs/Direction des Affaires Financières (DAF) has also a good experience with the preparation of Procurement Plans for Bank projects. That is why it is also expected that it will have the capacity to do the same for the PNO4. The Odesypano has prepared a Procurement Plan for the first 18 months of the project. The Procurement Plan has been approved by the Bank and was attached to the Minutes of Negotiations. 54. Monitoring/Control Systems. In the terms of monitoring the implementation of the project, the overall responsibility would fall on the Director General of the Odesypano, while the actual day-to-day monitoring would fall on the Director of Financial Affairs/Directeur des Affaires Financières with his two Division Chiefs for Financial and Accounting/Financière et Comptable and Supply and Materials/Approvisionnement et Matériel. The DAF will be supported by relevant technical units, each in its field, for the implementation of procurement activities and contract management. As the Odesypano is an EPNA, contracts above a certain threshold will be subject to approval of the relevant Tunisian procurement commissions. 55. Capacity to meet the Bank’s Reporting Requirements. It is expected that the Implementing Agency will have the capacity to meet this requirement and produce adequate reporting on procurement processing and contract management.
D. Social
56. The Odesypano proposes to intervene in 25 new administrative sectors in addition to the existing 88 sectors covered under PNO3 implementation. A total of 113 administrative sectors will thus be covered altogether over the six years of the PNO4. About 67,000 households totaling 318,000 persons will benefit from the PNO4 including households already targeted under the PNO3. The target population is young, composed of 53.1 percent young women and 55.1 percent young men aged 29 years or younger. More than half of the target population is female (50.5 percent) and more than a quarter is landless (27.7 percent). The poverty rate in these areas is 3.1 percent.
- 25 - 57. A socio-economic assessment of the target groups was conducted by the Odesypano in preparation for the PNO4. This assessment was undertaken in order to better identify and understand target groups, particularly the most vulnerable ones, and to better formulate the various activities of the project. Four specific groups were identified as targets of the PNO4: (i) Famers (small, medium, large) (ii) Women (iii) Youth, and (iv) Landless. 58. Similarly to the PNO3, PDCs remain the basic framework of the design and intervention modality of the PNO4. Communities will participate in their PDC preparation and formulate their priorities. PDC preparation and execution will be achieved through a participative and integrated approach, using the tools and methodologies already applied during the PNO3. Community-based workers and technical specialists will support communities in the process of designing, executing, and monitoring PDCs. Governmental stakeholders, regional directorates of technical ministries and non-governmental partners will also play an important role. Partnership protocols will define their intervention mechanisms in terms of planning, programming, financing, implementation, and M&E of the different activities planned in the PDCs. Local organizations such as CLDs will serve as institutional interfaces between the governorates, the Odesypano, and the communities involved. 59. The Odesypano has chosen a component approach for the new project. The project components will not target a group in particular except if the activity requires a focus on a particular group from the start. It will also be particularly important to seek to ensure higher representation, participation, and greater decision-making opportunities for women, youth, and the landless. 60. In terms of institutional capacity, the project has budgeted for the recruitment of five contractual sociologists during the first year of the project. Four will be at governorate level and one at central level. Six local animators and eight specialists in various sectors will be replaced progressively by the MARHP in order to replace the same number of staff who would retire in the next few years would be replaced. The Odesypano is aware of the need to replace this staff in a timely manner in order to ensure that capacity on the ground is maintained to achieve the set goal of covering 113 sectors.
E. Environment
61. The Project is expected to generate positive environmental impacts. The project aims to improve the socio-economic conditions of rural populations in the Northwest region through access to potable water, which would improve health and hygiene, especially for children. The activities related to soil and water conservation will decrease soil erosion, increase vegetation in agricultural areas, and lead to the protection and management of natural resources. Forestry activities would contribute to reducing the pressure on forest areas and contribute to their sustainable management. Climate change awareness-building activities and the dissemination of climate-appropriate practices will also help to reinforce livelihood and agro-ecosystem resilience and adaptability to climate change impacts. 62. The potential negative environmental impacts could be that rural infrastructure works, particularly the construction of rural roads, could lead to hydrographic changes with the
- 26 - possibility of floods and erosion. Agricultural intensification through the creation of new irrigated areas could lead to increases in fertilizer use which could pollute groundwater supplies. Forestry management could be negatively affected if the environmental dimension is not integrated and could lead to increased erosion and hydrological perturbations.
F. Safeguard Policies
63. Social safeguards. The implementation of project activities should not cause any involuntary physical displacement of populations or expropriation of land. The World Bank Operational Policy 4.12 (Involuntary Resettlement) is triggered to address any potential use of or access to private land. The majority of planned activities will be carried out within the framework of community development plans, which are yet to be defined with and by the communities during project implementation. The favored procedures to mobilize land will consist of voluntary cession and temporary occupation. 64. Accordingly, a draft Resettlement Policy Framework (RPF) was prepared by the Odesypano and has been shared with relevant parties in a consultative workshop in country on June 1, 2010. The RPF has been disclosed on June 21, 2010 on the MARHP website (www.onagri.nat.tn) and will be also available on the Odesypano website when it is set up. The RPF is available to the public in the central office of the Odesypano in Béja and in its regional offices. The RPF has been disclosed at the World Bank Infoshop on June 25, 2010. 65. In terms of monitoring and reporting on the implementation of the RPF, the Odesypano has designated six focal persons at the central (one person) and regional levels (five persons) in charge of environmental and social safeguards (see list in Annex 10). The World Bank team met with the focal persons during the appraisal mission and discussed their responsibilities, namely the monitoring and reporting of the implementation of the RPF (for social safeguards). 66. In terms of capacity building, the Odesypano will recruit: (i) consultant(s) who will provide training on social safeguards at project launch and yearly to relevant staff, including the focal persons; and (ii) a full-time resource person (consultant) who will provide support for the monitoring and reporting of the implementation of environmental and social safeguards, at Odesypano headquarters. This person will back up the main focal person, at headquarters. 67. A section on the RPF will also be included in the Operations Manual. The full text will be included as an annex of the Manual. 68. Environmental Safeguards. The project is being implemented under OP 4.00 (Piloting the Use of Borrower Systems to Address Environmental and Social Issues in Bank-supported Projects). OP 4.00 triggers the Environmental Assessment and Forests OPs. This project would have been classified as Category B in accordance with OP 4.01 (Environmental Assessment) if it had been applied to this project. The Bank conducted a Safeguard Diagnostic Review (SDR) to determine the equivalence and acceptability of the national systems for environmental impact assessment and forests, as well identify any gaps. The draft SDR was disclosed for the purpose of a consultation workshop that took place on June 1, 2010. The draft SDR was further reviewed and revised to take into account the outcomes of the consultation. It was disclosed in its final version on June 21, 2010, on the MARHP website (www.onagri.nat.tn) and is available in the central office of the Odesypano in Béja. This document was submitted for disclosure in the Infoshop on June 28, 2010. The potential environmental and forestry issues and measures to address them are described in the SDR. A Framework Document on Environmental and Social
- 27 - Protection (FDESP) also known by its French acronym as the Document Cadre de Protection Environnementale et Sociale (DCPES), was prepared by the MARHP to address the gaps identified during preparation and described in the SDR and will be the guiding document for the implementation of safeguard measures during implementation by the Odesypano.
Safeguard Policies Triggered (please explain why) Yes No OP/BP 4.00 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 not eligible for piloting under OP 4.00 Projects in Disputed Areas (OP/BP 7.60) X not eligible for piloting under OP 4.00
G. Policy Exceptions and Readiness
There are no policy exceptions.
- 28 - Annex 1: Country and Sector or Program Background TUNISIA: 4th Northwest Mountainous & Forested Areas Development Project (PNO4)
1. Tunisia is a North African country bordering the Mediterranean Sea. It has a population of around 10.3 million (2008), with an annual growth rate of 1percent, within an area of approximately 163,610 km2. Since independence in 1956, Tunisia has successfully implemented a far-reaching and ambitious development strategy with strong results. The economy is fairly diversified with significant agricultural, mining, manufacturing, and tourism sectors. Real GDP growth, averaging almost 5 percent over the past decade, slowed to 4.6 percent in 2008 and to 0.3 percent in 2009 because of an economic contraction caused in large part by the ongoing international financial crisis and in particular by Europe’s slowing import demand (Tunisia’s largest market). However, the expansion of non-textile manufacturing, recovery in agricultural production, and strong growth in the services sector somewhat lessened this decline. The agricultural sector accounts for 9.9 percent of GDP (2008), a share that has decreased continuously over the last 20 years, and the rural population has declined from 45 percent of the total population in 1986 to 35 percent in 2008. 2. The country has made solid progress in poverty reduction, equitable growth, and social indicators. The country’s overall poverty level has gradually declined from 4.2 percent in 2004 to 3.8 percent in 2007. 14 The GNI per capita was estimated at about USD 3,480 in 2008, which is higher than the average USD 3,242 in the MENA region for the same period. Data from the latest household survey conducted in 2005 shows a 37.6 percent increase in average per capita income between 2000 and 2005. The gap between Greater Tunis, the richest region, and the Northwest and Center-west, the least affluent regions, has narrowed. Access to basic socio- economic services, namely water, electricity, and sanitation, is widely available, and broad social protection systems are in place. Tunisia is also considered a regional leader with respect to gender issues and strengthening women's role in society. The country is on track to reach the Millennium Development Goals with regard to education and health indicators. 3. The Northwest represents a vital region for Tunisia. The region includes 1.4 million people, or 14 percent of the national population, spread over 2 million ha, or about 12 percent of the national territory. The region is located at the northern extremity of the country and is characterized as a moderately mountainous region with altitudes peaking at 1,000 m, interspersed with vast sedimentary basins. Rainfall varies between 300 and 1,200 mm annually, with the wet season generally lasting for seven months between October and May. Within the Northwest region, the mountainous and forested areas cover around 1.2 million ha and include 620,000 inhabitants, or around 49 percent and 51 percent of the region’s area and population, respectively. The PNO4 covers nearly 605,000 ha and 320,000 inhabitants, representing nearly half of the mountainous and forested areas (see Table 1 below).
14 The national poverty level in Tunisia is considered to be persons earning less than TD 400 (slightly more than USD 300) per year and covers only the basics for survival. Using a higher poverty line, the World Bank global poverty project found an incidence of poverty of 7 percent for 2005, still the lowest in the MENA region. The Government is also looking at poverty beyond absolute deprivation, as captured by poverty incidence, and addressing issues of vulnerability and exposure to risk, especially for poor farmers.
- 29 - Table 1.A: Territorial Subdivisions in Tunisia and PNO4 Intervention Areas National Northwest NWMFA1/ Odesypano through the PNO4 Subdivision Level Region Areas of Areas of TOTAL % of Consolidation Expansion NWMFA Governorate 24 5 2/ 5 2/ 5 2/ 5 2/ 5 2/ Delegation 264 43 43 21 8 23 54% Admin. 2,064 413 235 88 25 113 48% Sectors Population 10,126,736 1,357,550 620,211 268,096 50,336 318,432 51% (inhabitant) Area (ha) 1,951,640 1,231,067 459,784 144,293 604,077 49% Households 299,610 132,683 56,299 10,701 67,000 51% 1/ NWMFA = Northwest Mountainous and Forested Areas. 2/ Encompassing the four governorates of Béja, Jendouba, Le Kef, and Siliana and the western part of the Bizerte governorate (the western portion composed of the three delegations of Joumine, Séjenane, and Ghézala). The governorate of Bizerte is part of the Northeast region.
4. Agriculture forms the basis for the local economy and local employment in the Northwest. Main production systems are annual crops (mainly cereals – wheat and barley) and traditional extensive livestock (mainly small ruminants and some cattle). Forests also fulfill important economic and social functions by directly benefitting local populations as alternative revenue sources through forest products. Agricultural lands are particularly heavily fragmented in the region, with nearly 75 percent of parcels under 10 ha and 50 percent under 5 ha. A more rational and adapted use of land, coupled with improved crop intensification through closer technical training, would enable significant improvements in cereal, fodder, and arboreal production. In terms of livestock, race improvements and better farm integration would lead to considerably higher milk and meat production. Finally, for the numerous landless families, off- farm income-generating activities frequently represent the only real opportunities for employment and revenue. 5. Climate change has emerged as a major challenge for the agricultural sector. Projections show increases in annual and seasonal temperatures by 0.8 °C by 2020 and 1.6 °C by 2050. Dry years will be more frequent and more intense by 2030 and extremely dry and humid periods will vary between seasons. Rainfall in the North is also set to decrease by up to 5 percent by 2020 and 10 percent by 2050, though not as much as in the South, where the reductions in rainfall are up to 10 percent by 2020 and 30 percent by 2050. In the Northwest, the incidence of floods in winter and fires in summer is continually increasing, and such extreme events will further accelerate the soil degradation and erosion cycle, prompting a further extension of cultivated lands, saturation, and increased ecosystem encroachment. Erosion already affects 60 percent of the total 5 million hectares of arable land in the Northwest, and erosion mainly by water results in a total loss of an estimated 13,000-23,000 ha of topsoil each year. Furthermore, increased fires in the North, coupled with decreased de-siltation due to drought, could potentially have negative consequences for the entire national economy, by increasing the vulnerability of dam systems and water supply for a significant part of the country. Fires also pose a direct security threat by increasing erosion and subsequently landslide risks, endangering both people and dam function. The rapidly growing national demand for water, mainly from economic and population growth, means that Tunisia is reaching its physical limits in terms of water collection and storage and can ill afford additional pressures resulting in further water resource degradation. In terms of effects on livelihoods at a national level, climate change impacts include a 40 percent
- 30 - decrease by 2016 and 50 percent by 2030-50 in olive oil production nationally, and a 20 percent decrease by 2016 in livestock production in the North. 6. The proposed project remains in line with Government directives outlined in the recently approved 12th National Economic and Social Development Plan (2010-2014). In the 11th Economic and Social Development Plan (2007-2011), under which the project was prepared, the Government laid out five development axes. One axis centers on a comprehensive development approach that guarantees sustainable growth and a harmonious balance among economic, social and environmental priorities. Through this axis, the Government will continue to pursue poverty fighting programs that ensure effective income distribution and further strengthen the social safety net. Another axis focuses on the consolidation of investment in human capital to increase its contribution to growth and consequently playing a central role in driving the development process. Finally, a third axis includes actions to transform the agricultural system in the context of sector policies that respond to the need for an economic structure transformation through a greater diversification of the productive base and an increase in the contribution of high added-value and skill-intensive activities. 7. Since the 1980s, Tunisia has been a pioneer among developing countries in emphasizing environmental conservation and water resource management. The Government has maintained a high level of public expenditure for environmental protection and natural resource management over the last decade, amounting to over 1 percent of GDP, which is the same as some European countries. Substantial progress has been made in this area where the annual cost of environmental degradation was estimated at around 2.1 percent of GDP in 2004. However, important challenges remain, particularly in soil and water management, coastal protection, solid waste management, integrating long-term environmental impacts into sector development strategies, and engaging public consultations on environmental investments. To address some of these issues, the Government is implementing two main programs at the national level: (i) soil and water conservation (2002-2011) including the construction of hill lakes, implementation of conservation works in watersheds and groundwater recharge operations; and (ii) integrated water management and conservation (2001-2011) with both phases co-financed by the Bank. 8. In terms of climate change the Government has developed a national adaptation strategy and action plan for the agricultural sector and ecosystems centered on three principal axes: (i) overcoming short term crisis management through a risk adaptation strategy linked to climate change; (ii) integrating climatic volatility within agricultural and economic policies; and (iii) managing the socio-economic consequences set to impact the agricultural sector in an integrated manner between economic sectors. The Government has also developed adaptation strategies and corresponding action plans for coastal areas in terms of sea level rise, the health sector, and tourism (currently underway). 9. The Government has requested Bank assistance to supports its strategies and initiatives in agricultural and rural development and sustainable natural resource management. High priority is given to mainstreaming IPA for rural development in the five target governorates of Béja, Bizerte, Jendouba, Le Kef, and Siliana. The Government has already supported and co- financed the previous PNO1, PNO2 and PNO3 projects in the mountainous and forested areas of the Northwest and allocated bridging funds to the implementing agency for 2009 and 2010 to continue activities until the launch of the PNO4. The significant results and positive impacts of the previous PNO3 projects are well documented and include: (i) a significant increase in average rural household income (from TD 2,050/USD 1,460 in 2003 to TD 3,784/USD 2,700 in
- 31 - 2009 in constant terms); (ii) lower unemployment rates (16 percent in 2009 down from 19 percent in 2003); (iii) better access to basic infrastructure, with access to roads increasing from 56 percent to 81 percent and access to potable water increasing from 69 percent to 81 percent over the same period; (iv) increases in vegetation and forest cover from 32 percent to 38 percent; (v) increases in the percentage of areas treated with soil and water conservation investments from 0.3 percent to 13 percent, covering 20,700 ha of fragile lands; and (vi) significant progress in terms of improvements through increased yields, diversification of agricultural production systems, and land use rationalization. Institutions also evolved and were strengthened under the PNO3. In addition to the institution building and strengthening of grassroots organizations, the Odesypano now covers close to 50 percent or about 500,000 ha of the mountainous and forested areas in the Northwest (see Box 1). The Odesypano’s development partners, including governorate administrations, CRDAs, regional directorates of other technical ministries, the OEP, the BTS, as well as the communities in the project areas, are now familiar with preparing and implementing integrated PDCs on a participatory basis. Box 1.A: Odesypano – The Past 30 Years The mission. The Odesypano was created in 1981, by the law 81-17 of March 9, 1981, to ensure the management of natural resources in two major watersheds to minimize erosion and silting of dams in a zone that was considerably isolated and poorer than other regions in Tunisia. The Odesypano contributed to the increase of incomes while ensuring improvements in natural resource management through investments in infrastructure works, mostly roads and anti-erosion measures. The Odesypano also contributed to improved and intensified livestock raising. Thus, the first North West Rural Development Project (NWDP) had a sector as well as territorial focus, based on technical criteria for the management of watersheds rather than on the basis of sociological and poverty alleviation criteria. The second NWDP operation, which began in 1993, had a poverty alleviation and natural resource management focus, using a participatory approach that emphasized community organization and training to increase local community participation capacity. The project recognized the need to target vulnerable groups including women, unemployed youth, and the landless because of the special challenges they represented in terms of illiteracy, unemployment, and lack of access to basic infrastructure and social services. However, the institutional framework for the effective inclusion of these special groups was not fully developed. Results from the previous NWDP operations. Both projects were rated as satisfactory in achieving their development objectives. A measure of the degree of success by the Odesypano in the past years is best illustrated from the results of the completed second NWDP. Incomes. Family incomes from agricultural production on small farms represented real annual growth rates of 6.3 and 6.9 percent for small and medium farms, respectively, while estimates from non-farm activities added another 5 to 10 percent. However, benefits to the landless households were limited due to inadequate targeting mechanisms, but they did gain from community services such as roads, basic health centers, and schools. Basic infrastructure. The proportion of target groups having difficulty with access to rural roads, potable water, and water for livestock was reduced from the baseline estimate of 48 percent to 18 percent by project completion. Average distances from potable water points were reduced from 1.5 km to 0.8 km, and those from livestock watering points from 1.5 km to 0.9 km. Education. During project preparation it was found that the target population experienced a high level of illiteracy, particularly among young girls, largely as a result of inadequate access to schools and the reluctance of parents to let them walk long distances. The project financed several schools and increased the number of villages close to schools from 39 percent to 46 percent. It is estimated that school building coupled with improvements in rural roads contributed to reducing average illiteracy rates from baseline estimates of 60 percent to approximately 44 percent among beneficiary populations. Migration. Overall, the number of households was found to increase after three to four years of project implementation, a phenomenon that is being attributed to improved socio-economic conditions, including better roads and other basic facilities. Environment. The impacts of soil and water conservation measures were increased infiltration rates and crop and tree survival rates. In addition, as a result of the increased water retention capacity of the soils, the adoption of perennial crops increased from a baseline estimate of 45 percent to 55 percent. The increased agricultural production also raised on-farm employment opportunities. For example, the number of days spent working on-farm increased from the baseline of 136/yr to 285/yr at project end, an increase
- 32 - of 149 days or 109 percent. This is an important result for a region where there is high unemployment and under- employment. Can the Odesypano model be replicated further? To assess the replicability of experience, it is important to assess the success of the instruments applied by the Odesypano. The key instrument applied by the Odesypano is the integrated participatory approach, which has significantly evolved since its inception. The methodology is flexible and uses multidisciplinary teams to encourage local community participation. Another key factor to its success has been the decentralized implementation structure of the Odesypano, which has allowed local communities to express their needs and the Odesypano to address them through the jointly prepared PDCs and the CPAs. During replication, the IPA methodology must be adapted to the socio-economic conditions, the agro- ecological zones, and above all it must remain flexible to permit a quick response to local community demands – a key prerequisite to improving socio-economic conditions.
10. Despite this progress however, sustained investments and support are needed to consolidate, deepen, and expand these positive results. The communities already covered by previous projects still need additional investments for further improvements in their socio- economic conditions, as well as additional institutional strengthening for more self-reliance. Drawing from the extensive experience of the Odesypano in promoting and implementing bottom-up development using IPA, the Government will be able, through the PNO4, to continue providing targeted financial, technical, and capacity building assistance to some of the poorest and most remote communities of the Tunisian Northwest. After initial considerations back in 2002 during PNO3 preparation on the phasing out of the Odesypano in favor of a transfer of responsibilities to the CRDAs, the Government has now recognized the uniqueness of the role and the specificity of services provided by the Odesypano in the mountainous and forested areas of the Northwest. The Government has also concluded that the Odesypano and CRDAs are to play complementary roles in servicing different target areas and beneficiary groups. The Government has decided to continue using the Odesypano as the main implementing entity for the PNO4 and has expressed a strong wish to have the PNO4 operational by January 1, 2011. 11. The proposed Project would be aligned with two of the three strategic objectives of the current CPS, approved in November 2009: (i) Competitiveness and Employment; and (ii) Sustainable Development and Climate Change. As such, the Bank is well positioned to continue to support Government priorities in integrated participatory local development and sustainable natural resource management in the Northwest. The Bank’s global experience in community- based development, natural resource management, environment, and climate change can bring real added value to the Government in this respect. Additionally, greater use of country systems for environmental safeguards will also be implemented, making it the fourth15 Bank-financed project in Tunisia that will pilot the use of country systems.
15 The other three projects are the Solid Waste Project, the Second Water Sector Investment Project, and the Second Community- Based Integrated Rural Development Project.
- 33 - Annex 2: Major Related Projects Financed by the Bank and/or other Agencies TUNISIA: 4th Northwest Mountainous & Forested Areas Development Project (PNO4)
Latest Supervision Sector Issue Project (ISR Ratings) (Bank-financed projects only) Implementation Development Progress (IP) Objective (DO) Bank-Financed Improvement of public irrigation scheme Second-Water Sector Investment S S management and water access through (PISEAU2) (P095847) (ongoing) stakeholder participation Climate change impact assessment on oak Addressing Climate Change Impacts S S forest and development of a strategic in the Oak Forest Ecosystem framework for conservation of forests (TF093089) (ongoing) Management of biodiversity degradation Gulf of Gabès Marine and Coastal S S in the Gulf of Gabès region Resource Protection (TF54942) (ongoing) Upgrading of public and private services Agricultural Support Services S S to agricultural producers, processors and (Loan 7063) (closed) (ICR Rating exporters MS) Integrated water resources management, Water Sector Investment Loan MS MS conservation of water resources, and (PISEAU1) (Loan 7025) (closed) protection of the environment Community-based improved basic Second Community-Based Integrated n.a. n.a. infrastructure and services, sustainable Rural Development Project income increase and natural resource (PGRN2) (P112568) 1 management Rural policies and institutions Agricultural Policy n.a. n.a. Modernization (P107296) Assistance to the Government in Climate Change Country Systems n.a. n.a. preparing a climate change strategy for Strategy (P117467) the whole country Treated wastewater use in agriculture, Improved Management Greater S S promoting recharge of over-exploited Tunis Treated Wastewater Discharge aquifers, and pollution reduction Project (P118131) Other development agencies Promotion of soil and water conservation IFAD – Integrated Agricultural n.a. n.a. Development Project in the Governorate of Siliana – Phase 2 (ongoing) Agro-pastoral development, revenue IFAD – Agro-pastoral Development n.a. n.a. diversification, natural resource Program and Local Initiative management Promotion in the Southeast (ongoing) Water, soil, rangelands, forests AfD – Financement Cadre de n.a. n.a. conservation at the watershed level. Gestion des Bassins Versants (ongoing) Natural resources management with AfDB - Integrated Agriculture n.a. n.a. strengthened infrastructures in Kasserine Development Programme for Gabès, Gafsa and Kasserine (ongoing) Soil and water conservation through the EU – Programme de Mise en Valeur n.a. n.a. construction of retention dams en Petite Hydraulique autour des Barrages Collinaires (closed 2009) Improvement of rural livelihoods, and EU – Programme de Développement n.a. n.a.
- 34 - sustainable natural resources protection Rural Intégré et de Gestion des through a participatory approach Ressources Naturelles (closed 2009) Mitigation measures mainly through GtZ – Implementing the United n.a. n.a. Clean Development Mechanism financing Nations Framework Convention on and sectoral adaptation strategies Climate Change (UNFCCC) in (agriculture, coastal areas, tourism, Tunisia (ongoing) health) Sensitization of local and regional GEF – Sensitization to the use of n.a. n.a. population to use of wood, solar hot water renewable energy and to forest heating, improvement of conditions for protection in Bouarada (small grant – women, and protection of vegetation and closed 2008) forest cover Improvement of living conditions for AfDB – Support for GDAPs n.a. n.a. rural populations, management of water (upcoming) and food systems by GDAPs AfDB : African Development Bank AfD: Agence Française de Développement. GEF : Global Environment Facility GtZ: Gesellschaft für Technishche Zurammenarbeit. EU: European Union IFAD: International Fund for Agricultural Development.
1. The PNO4 will coordinate closely with the Second Community-Based Integrated Rural Development Project (P112568), which has direct linkages to its implementation, including potential collaboration and exchanges on the technical and methodological front, especially on land degradation, forest management, promotion of sustainable land management techniques, and water management.
- 35 - Annex 3: Results Framework and Monitoring
TUNISIA: 4th Northwest Mountainous & Forested Areas Development Project (PNO4)
1. Results Framework
Project Development Objective Project Outcome Indicators Use of Project Outcome Information Improve the socio-economic By the end of the project: Baseline, mid-term, and end of conditions of the rural 22% improvement in a project information on each of populations and promote better composite index of socio- these indicators will be protection and management of economic indicators at the collected to assess whether natural resources in the project sector level. project inputs are achieving the area using an integrated intended impacts, with In land areas supported by the participatory approach to adjustments made where project: an increase from 30 to community-based development. appropriate. 38 % of land under soil/water
conservation management and Inputs for follow-up project. from 30 to 33% in land covered
by perennial plantations and
improved pasture.
All sectors involved in the project that have their populations organized into GDAPs or informal CDs and have prepared their PDC, which is being implemented in collaboration with partners. Intermediate Outcomes Intermediate Outcome Indicators Use of Intermediate Outcome Monitoring Component 1 - Institutional At the end of the project at least Annual project reports would support and technical 75% of sectors have a GDAP. disseminate progress on assistance for PDC preparation On average 50% of households intermediate outcome and implementation in the in the project areas belong to indicators and would provide project area GDAPs (% of women, % of inputs to Bank supervision youth, and % of landless missions to assess planned 1.1 People living in sectors people). versus actual accomplishments targeted by the project are and pace of execution. People benefitting from the organized and participate in Adjustments will be made to project-financed investments their PDC preparation and annual implementation plans contribute at least 10% towards implementation with partners. when needed and justified. the costs of those investments
in cash or kind.
1.2 The Odesypano and its 80% of investments in CPAs Same as above. partners more effectively concluded with the GDAP/CD implement IPA. and other partners are fully committed or implemented. 60% of the PDC in the delegations receiving intensive project support forms is
- 36 - included in the PDES (in 2016). 40% of PDC investments are made by partners. Component 2 – Support for By the end of the project: Same as above. agricultural and pastoral Crop yield index of production and income- conventional key crops (wheat, generating activities in the barley, fodder crops) and project area livestock yield index (cattle, sheep and goats) have 2.1. At the end of the project, increased by at least 20% and production systems are more 13%, respectively. diverse and yields have Percentage of land under increased. fodder crops, olive trees and
high value crops (land use 2.2. Targeted vulnerable groups change index) has increased by (women, young people, and 20%. landless) develop related markets and sustainable AGRs. 25% of vulnerable people seeking to access AGRs in 2.3. Small rural enterprises PDCs have obtained financing (farmer groups) open new market and have concretized their channels and increase their AGRs. sales. Rural enterprises have established 10 marketing agreements and sales increase by 10% per year over the project period. Component 3 – Consolidation, By the end of the project: Same as above. protection and management of 64% of land sensitive to natural resources in the project erosion is protected by area soil/water conservation management. 3.1. Management of natural 15% of pastures are upgraded resources in project areas (land, and maintained according to pasture, forests, and water) is agreed conservation increasingly done in a management standards. sustainable manner. 13% of land is upgraded by tree plantations. Component 4 – Improvement By the end of the project: Same as above. of basic rural infrastructure in 83% of households in project the project area areas have access to drinking water. 4.1. Access to basic rural 89% of the households in infrastructure (mainly rural project areas have access to roads and potable water) for rural roads. communities located in remote areas has increased.
- 37 - 2. Arrangements for Results Monitoring
Target Value Data Collection and Reporting
Outcome Indicators PDO Baseline Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Frequency Data Collection Responsibility for and Reports Instruments Data Collection
Improvement in the composite index of 100 100 108.5 122 At the start, Surveys in 30 Consultancy and socio-economic indicators at the sector mid-term and sectors and of Odesypano level* end of project 750-1,000 families
In land areas supported by the project: 30.9% 31.8% 33.1% 34.7% 36.5% 37.9% 38.6% Yearly Odesypano GIS Odesypano an increase in the percentage of land information under soil/water conservation 30.8% 31.2% 31.6% 32.2% 32.8% 33.3% 33.5% management and in the percentage of land covered by perennial plantations and improved pasture
The number of sectors involved in the 37 70 97 113 113 113 113 Yearly Odesypano annual Odesypano project that have their population reports organized in GDAPs or CDs and have prepared their PDC which is being implemented in collaboration with partners
Intermediate Outcome Indicators
Percentage of sectors with a GDAP 40 46 53 59 65 73 75 Yearly Odesypano annual Odesypano reports
Percentage of households in project 30 33 37 42 45 48 50 Yearly Odesypano annual Odesypano areas adhering to a GDAP reports
Among the members of GDAPs the % For information only Yearly Odesypano annual Odesypano of women, the % of young people, and reports for the % of landless information
- 38 - Target Value Data Collection and Reporting
Outcome Indicators PDO Baseline Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Frequency Data Collection Responsibility for and Reports Instruments Data Collection
Percentage of cash or in-kind 10 10 10 10 10 10 10 Yearly PDC reports Odesypano contributions to investments by project target groups
Percentage of CPA investments fully 65 70 75 80 80 80 80 Yearly PDC reports Odesypano committed or executed
Percentage of PDCs in delegations ------60 Yearly PDC reports Odesypano with intensive project support that are included in the PDES(2016)
Percentage of PDC funding by partners 35 35 36 37 38 39 40 Yearly PDC reports Odesypano
Crop yield index 100 100 -- -- 110 -- 120 At the start, Odesypano Odesypano/ mid-term and extension reports/ University/ Others end of the Independent project surveys
Livestock yield index 100 100 -- -- 110 -- 120 At the start, Odesypano Odesypano/ mid-term and extension reports/ University/ Others end of the Independent project surveys
Land use change index 100 100 103 106 110 115 120 Yearly Odesypano annual Odesypano/ reports / Satellite University/ Others imagery
Percentage of vulnerable people 0 10 15 20 25 25 25 Yearly Odesypano annual Odesypano seeking to access AGRs that have reports obtained financing and concretized their AGRs
- 39 - Target Value Data Collection and Reporting
Outcome Indicators PDO Baseline Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Frequency Data Collection Responsibility for and Reports Instruments Data Collection
Number of marketing arrangements 0 2 6 10 10 10 10 Yearly Odesypano annual Odesypano established by rural enterprises over reports the project period (cumulative)
Percentage of erosion sensitive lands 51.5 53 55.2 57.9 60.8 63.1 64.3 Yearly Odesypano GIS Odesypano protected by soil/water conservation
Percentage of pastures that are 11.3 11.7 12.3 12.9 13.8 14.6 15.0 Yearly Odesypano GIS Odesypano upgraded and managed according to agreed conservation practices
Percentage of land upgraded through 10.2 10.6 11.2 12.0 12.7 13.3 13.5 Yearly Odesypano GIS Odesypano tree plantations
Percentage of households in project 76.2 77 78.5 80.1 82 83.1 83.4 Yearly Surveys by Consultancy/ areas that have access to drinking water Consultancy/ Odesypano Odesypano
Percentage of households in project 75 76 79 83 87 89 89 Yearly Surveys by Consultancy/ areas that have access to rural roads Consultancy/ Odesypano Odesypano * For a description of the indices see text below.
- 40 - 3. Operational Arrangements for Results Monitoring and Evaluation
1. The monitoring and evaluation unit under the Odesypano’s DPSE is in charge of M&E. The M&E unit is staffed with three professionals organizing data collection, processing, and publication. The unit has also a GIS that keeps track of changes in land use and natural resource management and has successfully monitored the PNO3 results indicators. Under the PNO3, M&E was an entirely internal activity to the Odesypano as all M&E data were collected through the Odesypano’s extension agents and processed internally. Monitoring 2. The Odesypano’s central and regional directorates and branches as well as field extension agents will collect technical data on the progress of project activities and send the information to the DPSE through a web-based database management system. The monitoring system will facilitate the implementation and coordination of project activities at the local and regional levels and ensure an effective information flow for management purposes. The PDCs and CPAs also contain indicators to be monitored by both the GDAPs and the project management. At the end of each year, the results of completed CPAs will be assessed jointly by the communities with the technicians involved. The results will be inputted into the monitoring system and consolidated on a yearly basis at the regional and local levels to provide an assessment of project results. 3. The DPSE will also monitor the project’s intermediate outcome (result) indicators (see the Results Monitoring Table above) and provide a yearly update of these indicators to be included in the project’s annual report. Monitoring of the Odesypano’s internal management indicators will be done through field reports from extension agents and through the PDCs developed during the process. The above Results Monitoring Table provides the frequency of the data collection, the data collection instruments and the responsible units for the intermediate outcome indicators. Evaluation
4. The Odesypano will carry out an evaluation at mid-term and at the end of the project. The Odesypano has no baseline data on the socio-economic conditions of the sectors covered under the project. Under the PNO4, and in order to establish a correct baseline situation, the Odesypano intends to contract a consulting firm or university and collaborate with the Regional Office of the INS to collect data on the evolution of the socio-economic conditions (outcome indicator 1). The INS carries out a socio-economic census every five years, but this census is carried out at the regional level and does not collect sufficient data at the administrative sector (imada) level to provide useful inputs into the project M&E system. Therefore, the Odesypano will contract a consulting firm or university to carry out a survey collecting complementary data in the sectors covered under the project to establish the baseline and identify changes in the baseline data at mid-term and at the end of the project. The Regional INS Office will advise and assist the Odesypano with the terms of reference of survey work, sample size, methodology, and some quality control of the surveys. 5. To be able to gather all socio-economic indicators into one outcome indicator, a composite index of socio-economic conditions has been developed. The composite indicator includes the following elements and weights:
- 41 -
Composite Index Elements Weights Employment at the sector level 30% Housing conditions and household equipment 20% Access to drinking water 20% Access to rural roads 20% Access to electricity 7% Access to schools and health facilities 3%
The importance of each sub-indicator is based on several factors: (i) likely influence of project activities on the sub-indicator; (ii) degree of the sub-indicator needs satisfaction in the region (e.g. access to education and health is almost fully satisfied); and (iii) degree of measurability (e.g. impact on income would only be measurable through very intensive surveys). 6. A baseline survey will be conducted in order to secure meaningful pre-project baseline data in both types of sectors. It is estimated that, considering the diversity of the sectors and the number of sub-indicators, a 750-1000 household survey in 25 to 30 administrative sectors will be sufficient to obtain significant results. This will be repeated during mid-term (on a smaller sample) and at the end of the project. Taking into account the significance of the results and budgetary concerns, the Odesypano and consultancy staff will need to work out further details on the size of the household sample and the methodology. 7. A similar process will be followed to estimate the changes in a composite index of crop yields and livestock yields. The elements of the composite indices and their weights are as follows: Crop Yield Composite Index Weights Wheat yields 20% Fodder yields 40% Olive Tree Yields 40% Livestock Yield Composite Index Meat 40% Milk 60% Land Occupation Index Fodder crops 30% Olive trees 30% Horticulture and organic crops 40%
8. Each sub-indicator may have some additional sub-indicators according to the importance of the several crops within different production systems. At present, the Odesypano’s extension agents collect the raw data on the sub-indicators. However, this type of data should be checked, controlled, and reviewed by an independent agency, as extension agents may not always reliably transmit the field data. For this reason, the Odesypano will contract a university or consulting firm to carry out the baseline surveys and the mid-term and end-of project surveys on composite yield indices. 9. The changes in the land occupation index and in the Odesypano will be monitored by the Odesypano GIS system. This system has a significant database, built up over the years
- 42 - covering some 86 administrative sectors. However, this particular information is not always available on a sector basis and very limited information is available on new administrative sectors. The Odesypano will redraw the baseline in already covered sectors and establish a baseline in the new sectors. In the event that this would be too cumbersome, satellite imagery may be used as a mechanism to establish the baseline. 10. The Odesypano will also carry out yearly participatory evaluations of PDC preparation and execution mechanisms with a sample of GDAP members and administrative sector partner institutions and the beneficiaries. At the end of each year, the results of annual CPAs completed will be assessed jointly by the communities with the technicians involved. The results will be inputted into the M&E system and consolidated on a yearly basis at the regional and national levels to provide an assessment of outcomes. 11. Reporting. The Odesypano will provide progress reports on its activities including data on the evolution of project activities and intermediate outcome monitoring indicators. The Bank can then include such information in its internal reporting system. Each progress report will cover the period of one calendar semester and will be submitted to the Government by the Odesypano no later than forty (40) days after the end of the period covered and subsequently to the Bank no later than sixty (60) days after the end of the period covered by such a report. 12. Evaluation Schedule. (i) Baseline of outcome indicators: a. The baseline on outcome indicator 1 (socio-economic conditions) will be established through surveys completed by a consulting firm or university; b. Baseline information on outcome indicator 2 is available at the Odesypano; c. Baseline information on outcome indicator 3 is available at the Odesypano in the sectors already covered. In the new sectors, the Odesypano will establish the baseline, if needed through satellite imagery; and d. Baseline information on intermediate outcome indicators is available at the Odesypano and included in the Results Monitoring Table above. (ii) Mid-term evaluation: a. The Odesypano will recruit a consultant (firm) or university to prepare, under terms of reference agreed with the Bank, a mid-term evaluation report including a review of progress achieved in all components (results evaluation), and review the effectiveness of the project, cost-efficiency, implementation of the participatory methodology, alignment of the project with actual government policies, Bank project supervision performance, and of all intermediate outcome monitoring indicators; b. The mid-term evaluation will also include a limited beneficiary assessment (project beneficiaries, partners, Government) through a surveyor through focus groups; c. A consulting firm will carry out a limited survey of the evolution of the socio-economic conditions composite index; d. A university or consulting firm will carry out a quality control of the yield composite index established by the Odesypano; and e. The evaluation report will make recommendations for further project implementation.
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(iii) End-of-project evaluation a. As is the case for the mid-term evaluation, the Odesypano will recruit a consultant (firm) or university (the independent project evaluator) to prepare, under terms of reference agreed with the Bank, an end-of-project evaluation report including: i. A review of the achievements in all components (results evaluation); ii. A review of the effectiveness of the project; iii. An evaluation of the cost-efficiency of the project; iv. A evaluation of the implementation of the participatory methodology; v. An evaluation of the project impact on the basis of the outcome indicators and other relevant results; and vi. An evaluation of the relevance of the project within the government economic and social policies. b. A consulting firm will carry out a full survey of the end-of-project socio- economic conditions; c. A university or consulting firm will carry out a quality control of the yield composite index (end of project); d. The independent evaluator will make an estimate of the economic and financial internal rate of return of the project on the basis of the Bank’s financial and economic evaluation in the PAD; e. The independent evaluator will carry out a full beneficiary assessment of the project (participants, partners, local and central Government) as well as an evaluation of the Bank’s performance during preparation and implementation; and f. The evaluator will also present some lessons learned at the technical, financial, institutional and natural resource management level.
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Annex 4: Detailed Project Description TUNISIA: 4th Northwest Mountainous & Forested Areas Development Project (PNO4)
1. Project area. The project area consists of 113 administrative sectors (88 already covered under the PNO3 and about 25 new ones, representing an approximate 30 percent increase in the area covered) within the Northwest region mountainous and forested areas, which extends across the five governorates of Béja, Bizerte, Le Kef, Jendouba, and Siliana. Box 4.A. Governance and Administrative Structures in Tunisia The number of sectors is based on the calculated Territorial/ Function deployment capability of the Odesypano, assuming administrative Executive a Legislative and/or subdivision Consultative b that its workforce does not decrease. The 1. Governorate/ Governor/ Regional Council/ Conseil Gouvernorat Gouverneur Régional (CR) selection criteria used for the choice of the sectors 2. Delegation/ Delegate/ Local Development Délégation Délégué Council / Conseil Local include: (i) the proximity de Développement (CLD) to already covered 3. Administrative Onda -- sectors, in order to cover Sector/Secteur complete ecosystems, Administratif (imadas) mainly watersheds, and/or 4. Village, -- -- delegations; (ii) the Community/Douars c Government’s priority (a) : appointed officials level for sectors in terms (b) : includes both elected and appointed officials (c) : not formal subdivisions of socio-economic needs; and (iii) sector socio- economic and ecological vulnerability. 2. Component 1: Institutional support and technical assistance for PDC preparation and implementation in the project area (USD 4.97 million or 8.7% of total project cost). This component will support capacity building and technical assistance activities aimed at OLBs (mainly GDAPs and CDs), the Odesypano and its development partners (regional and local public administrations, and governmental and non-governmental organizations) to enhance participation and improve effectiveness in the planning, preparation, implementation, and M&E of PDCs and CPAs, as well as to foster the mainstreaming of IPA in local development processes (see Table 4.A below). This component will finance three sub- components: 3. Sub-component 1.1: Support to OLBs. The dimensioning of reinforcements for this sub-component is based on the gradual conversion of the remaining CDs into GDAPs. GDAPs are expected to number 50 at project start and 86 at project end. CDs will benefit from: (i) workshops (two per year for each CD); (ii) the provision of small office equipment/materials; and (iii) field information/training days and exchange visits between communities. GDAPs will benefit from: (a) two workshops (one regional and one national, on their role and constraints [relating to their status and others] as well as possible actions to be taken), (b) training, including administrative management and internal organization, PDC planning/programming and M&E, (c) exchange visits between GDAPs, (d) financing of 50 percent of the annual salary of around eight technical directors per governorate, who will be assisting GDAPs, including funds for transport means (each director covering two GDAPs on average with the other 50 percent of the salary being covered by the 21-21 Funds), (e) technical assistance to help GDAPs prepare their business plans, and (f) some logistical
- 45 - support (small office and computer equipment/materials). Concerning the experimental intensive partnership, the 15 GDAPs involved will receive closer and more intensive technical assistance and training on all issues pertaining to PDCs/CPAs preparation and execution. 4. Sub-component 1.2: Support to Odesypano partners. Support will consist of selective reinforcements to governmental partners (each of the five governorate administrations, CRDAs, regional directorates of other line ministries, etc.) and non- governmental partners (mainly ADLs and NGOs), in order for these to efficiently fulfill their respective roles, mainly in the PDC preparation and implementation process. It is also useful for these partners to increase their awareness of climate change and its related impacts on rural development in the Northwest region, with a view to including climate change adaptation measures in PDC preparation. In general terms, reinforcements will include: (i) 15 consultation workshops over the six years of the project as well as two information/awareness raising seminars; (ii) methodological training (including participatory planning, PDCs programming/budgeting, participatory M&E, etc.); (iii) educational trips and visits within Tunisia; and (iv) climate change awareness building and measures to increase livelihood and agro-ecosystem resilience. 5. Concerning the experimental intensive partnership targeting the administrations of six delegations selected among the five governorates, reinforcements will include: (i) one workshop per year to exchange and capitalize on experiences for each of the six project yearsl; (ii) the setting up of a database for each administrative sector and an M&E system for PDCs/CPAs in each administration; (iii) the provision of office and computer-based equipment/materials; and (iv) advanced training in project planning and M&E. 6. Sub-component 1.3: Support to the Odesypano. Support is necessary for three main reasons: (i) the Odesypano is requested to extend its interventions into new areas and thus needs additional logistical means; (ii) the Odesypano must further improve its screening and field intervention techniques to achieve a durable, self-managed local development process; (iii) the Odesypano is expected to play a greater role in terms of IPA-based local development promotion and dissemination of methodological tools to all main actors in the Northwest region. 7. Project support will consist of: (i) technical assistance for PDC preparation (five sociologists contracted for the first three years of the project); (ii) methodological reinforcement (six workshops on sharpening staff skills as well as setting up human resource management, quality control systems, and a communication strategy); (iii) provision of 30 vehicles (eight per governorate on average, either for utility or liaison purposes), equipment (computers and other) and materials (software and other); (iv) staff training16 (on specific themes such as participatory local development, rural socio-economics, project management, M&E, and use of computer-based tools); (v) implementation of an environmental and social safeguards plan; (vi) two three-year contracts for external audits with an accredited auditor; and (vii) a contract with a consultancy for project M&E, based on a set of impact and outcome indicators.
16 This sub-component will also support the rehabilitation for 23 CACs to be supported by Government counterpart funds as part of the recurrent costs considered for the PNO4 budget. - 46 -
Table 4.A: PDC/CPA Preparation/Completion Timetable
------PNO4 ------2010 2011 2012 2013 2014 2015 2016 Total PDCs prepared 39 34 25 15 0 0 0 113
CPAs completed 39 73 98 113 113 74 510 including : Béja 11 20 28 36 36 25 156 Kef 8 141921211396 Siliana 6 121414148 68 Bizerte 6 121616161076 Jendouba 8 15 21 26 26 18 114
8. Component 2: Support for agricultural and pastoral production and income- generating activities in the project area (USD 4.71 million or 8.2% of total project cost). This component aims to assist communities in increasing their agricultural and pastoral output levels through improvements in their production techniques and practices, while rationalizing as much as possible the use of the limited natural resources available to them. All activities indicated hereunder are meant to be part of the PDCs to be prepared and executed on a participatory basis with the communities concerned. The details of their formulation will therefore depend on the needs and expectations of the populations involved. 9. Sub-component 2.1: Agricultural advisory services to producers. Planned actions include: (i) selective financing of applied research responding to priority needs (including specification of technical packages, promotion of organic farming, improved productivity of collective pastures, livestock management techniques); (ii) provision of equipment/materials for demonstration and establishment of demonstration plots; (iii) carrying out of information/training days for building climate change awareness and disseminating innovative techniques and climate-appropriate adaptation measures; and (iv) provision of advisory services for large-scale crops, olive trees, milk production, organic farming, beekeeping, and rabbit-raising, among others. 10. Sub-component 2.2: Support for livestock development. Planned actions include: (i) acquisition of breeding bulls, rams and goats; (ii) provision of implants for breeding period synchronization and monitoring; (iii) conservation activities for endemic breeds (cryopreservation for sperm and embryos, controlled cross-breeding and establishment of quality labels, including Designation of Origin/Appellation d’Origine Controllée, Protected Geographic Indication/Indication Géographique Protégée, collective brands, and other labels); (iv) animal health development (including parasite management, provision of veterinary products for pregnancy cycles and infertility control, training for private advisers); and (v) beekeeping development (specialized training and financing for packaging, labeling, and certification). 11. Sub-component 2.3: Rehabilitation or construction of small-scale irrigation schemes. These concern mainly basic PDCs and require a solid prior organization of beneficiaries. Numbers and sizes will depend on the needs expressed during PDC preparation, but indicatively, the equivalent of around 150 ha of small-scale irrigation schemes, as well as the rehabilitation and construction of nearly 100 spring water catchments and the construction of two wells are planned under the project. 12. Sub-component 2.4: Promotion of AGRs. The project will encompass two main types of AGRs: (i) micro-projects; and (ii) small rural enterprises. Micro-projects are individual
- 47 - rural investments up to a maximum of USD 5,000 aimed at generating a supplemental income for small-scale farmers and vulnerable people such as women, young farmers, and landless people. The median loan amount provided per rural investment is about USD 1,000. Small rural enterprises are groups of farmers trying to gain access to new or more rewarding markets with additional value to crops or product diversification. 13. Under the micro-project part, the Odesypano will provide training and technical assistance to micro-entrepreneurs with the aim of starting around 1,000 micro-projects17 generating additional incomes for small-scale farmers and vulnerable groups (young, women, and landless). Micro-projects under the PNO4 would focus on cattle fattening, small ruminant production, beekeeping, small agro-processing (such as essential oils, grain mills), handicrafts, and other non-farm activities. Similarly to the PNO3, these investments will be financed by loans from the ADLs, which are non-governmental organizations supported by regional governments. ADLs obtain their funds mainly from the BTS, a rural Government Bank set up to finance small and micro-credit. In order to be more effective under the PNO4, the Odesypano will finance focused marketing studies and technical assistance to ADLs. 14. The small rural enterprises program aims to link farmer groups to markets. Based on the Odesypano’s past experience, there is potential for farmer initiatives with more formal links to markets but the program should focus on the availability of specific market channels, specific buyers, and market requirements before promoting such activities. 15. There are, however, legislation-related issues regarding farmer groups. The Tunisian law allows for farmers to come together for business purposes in Mutual Group for Agricultural Services/Société Mutuelle de Services Agricoles (SMSA). The SMSA, however, does not appear to be an appropriate organizational set-up for starting farmer groups: the structure is quite complex, the public information requirements are cumbersome, and the capital requirements to get the SMSA formally going are high for the average farmer group (about TD 10, 000). The GDAPs (the development of which is encouraged under the project) is not designed to have important business objectives and the Collective Interest Groups/Groupements d’Intérêt Collectif are more common in the irrigation sector and less adapted to commercial activities. Hence it is difficult to formalize starting farmer business groups. 16. As a consequence of the above legal issues, loans from the ADLs and the BTS are not readily available to small farmer groups. Whenever a group of farmers wants to obtain a loan for the purchase of equipment for common use among group members, the members have to obtain individual loans from an ADL and purchase the equipment with this individual loan. 17. Considering this constraint, the proposed project will adopt a cautionary pilot approach to the promotion of the small rural enterprise program. The project supports the Odesypano’s efforts to establish at least ten small rural enterprises by small groups of farmers and with the objective to experiment and demonstrate the viability of such rural enterprises and the organizational form these can take. These rural enterprises can be extensions of existing rural enterprises (already being assisted by Odesypano staff) or new ventures. 18. The Odesypano would implement this pilot activity along the following lines:
17 Under the PNO3, the Odesypano supplied technical assistance to about 800 small micro-projects that obtained loans from ADLs. As a result of the PNO3, 1,863 persons (of which 57 percent were women) benefitted from the necessary training on diverse agricultural themes (1,058 persons) such as small-scale animal, livestock, and sheep/goat raising, beekeeping, as well as on off-farm themes (728 in handicrafts and 77 in essential oils extraction), representing 423 percent of initial previsions (440 persons). Among these trained persons, 685 (or 37 percent) obtained credits and concretized their projects, of which 50 percent were women. Some 60 percent of those investments are still operating and performing well. - 48 -
(i) The Odesypano would help farmer groups identify market opportunities and partners. Commitments to at least one buyer would be a condition for the Odesypano to get involved in the following steps; (ii) The marketed product would be important to the Northwest region and be replicable by other producers at a scale large enough to assure a demonstrative effect; (iii) It would necessarily be a collective activity: individual producers supported by the project do not have the capacity to produce large enough quantities to be attractive to a buyer; (iv) The Odesypano would need to have carried out a feasibility study of the enterprise at the financial, technical, and social (group organization) levels and the proposed venture would have the potential to be profitable (e.g. five year payback period, financial internal rate of return at least 15 percent); and (v) The proposed venture would be environmentally screened and (if necessary) environmental mitigation measures should be taken to avoid environmental damage. 19. Under these conditions, the Odesypano would help producers develop a simple business plan to be submitted to the ADL to obtain financing for the enterprise. If loans are not forthcoming for reasons internal to the ADL, the Odesypano would be able to provide the group (through the GDAP/SMSA) with the equipment, materials, inputs, (building) supplies, technical assistance, and other operating needs in kind to start up the venture and engage in commercial relationships. Such assistance in kind (not cash) instead of credit would not exceed (at least initially) TD 50,000 per rural enterprise and be not be higher than the equivalent of TD 2,000 per participating family. 20. An agreement between the Odesypano and the GDAP/SMSA could be drawn up to enable the Odesypano to transfer the assistance in kind to farmer groups through the GDAP. The receiving small enterprise group would reimburse the value of the Odesypano’s assistance in cash to the corresponding GDAP over an agreed period (similar conditions as the ADL loans). The GDAP would agree to use the cash received to finance the extension of the membership of the farmer group focusing, wherever possible, on more vulnerable producers. 21. The Odesypano would provide technical assistance to groups managing their enterprise. This technical assistance would cover productive as well as organizational and commercial topics. If successful, the Odesypano would endeavor to multiply the experiences and help formalize the groups into SMSAs. 22. Component 3: Consolidation, protection and management of natural resources in the project area (USD 26.50 million or 46.4% of total project cost). The overall purpose of this component is to expand and improve vegetation and tree cover and to promote more sustainable natural resource management practices in targeted project areas. This will be achieved through soil and water conservation works, improvements to pasture and rangelands in degraded areas, and agro-forestry development as identified in the PDCs. 23. Sub-component 3.1: Soil and water conservation works. This sub-component is aimed mainly at preventing and managing soil erosion and ravine formation through: (i) the construction of contour thresholds (mainly stones) and ados (ditches and embankments) as well as stone sills acting to slow down runoff and trap sediments; and (ii) the “vegetalization” of banks and ravines. The focus will be on small works that the local population can control - 49 - and maintain. Small basins will also be constructed for tree crops in order to improve soil moisture and therefore crop yields. These works are for indicative purposes only, and the final choices will depend on the beneficiaries' needs and priorities as expressed in the context of the PDCs. 24. Sub-component 3.2: Pastoral and sylvo-pastoral improvements. These improvements will include: (i) the establishment of sylvo-pastoral areas (including direct seeding in pasture areas located in clearings within forest areas or in buffer zones, improved fodder plantations, etc.); (ii) the establishment of perennial pastures (including the organization of users, tillage, and seeding); and (iii) rangeland improvement (including fallow areas and reseeding). 25. Sub-component 3.3: Plantation of trees and activities in forest areas. This sub- component will support: (i) tree planting outside forested areas; and (ii) activities within the forested areas themselves including sub-projects within forested areas as approved in PDCs and that are compatible with Forest Management Plans, aiming to provide additional revenues to forest dweller communities, reduce the pressure on forest resources and facilitate the populations' participation in preserving these resources. These include the plantation of various non-timber tree species with multiple uses, the installation of sylvo-pastoral perimeters, forestry maintenance works by communities (collection of dead wood and minor scrubs, regular clearing and maintenance of firebreaks), and the development of AGRs and livelihood activities centered on the promotion of forest resources (beekeeping and honey production, medicinal and aromatic plants, essential oils, collection of mushrooms, wildflowers, and wild capers, etc.). These activities are expected to be small-scale and geared toward improving the livelihoods of forest dwelling communities. This sub-component will also support the provision of technical advisory services, logistical support and training to the DGF for the preparation or updating, and implementation of the participatory Forest Management Plans mentioned above (for more details on forest activities and their associated costs see Annex 11). 26. Sub-component 3.4: Land consolidation operations. These operations aim firstly at reducing land tenure constraints to carrying out soil and water conservation works and to secondly pave the way for crop intensification. The operations consist essentially in evaluating, in terms of size and productivity, individual farming lands that are presently highly fragmented and scattered, and help the owners swap between themselves equivalent plots so as to form larger single standing units. The project will finance information and awareness raising sessions, manage the exchange of plots between owners, over a total area of approximately 12,000 ha, plus the construction of access tracts over some 32 km. Previous experience shows that such new tracts become necessary to access the reconfigured plots once they have been consolidated into larger units.18
18 Under the PNO3, five land consolidation pilot operations were completed over 5,346 ha, spread over the five governorates under the project in the context of a collaboration agreement between the Odesypano and the AFA. The number of parcels per farmer was brought down from 10 to 3 with an average size of 1.72 ha per parcel instead of 0.62 before the project. Other beneficial impacts for land consolidation operations included: (i) the reduction of production costs (estimated at 53 TD/ha) on average, in particular due to time savings in terms of mechanical works (estimated at 40 minutes/ha); (ii) the mitigation of land and neighborhood conflicts (access to parcels); and (iii) the improvement of agricultural practices and the protection of lands due in particular to plowing along contour thresholds, involving 80 percent of consolidated lands (in comparison to 40 percent before consolidation) and the introduction of olive trees over approximately 90 percent of consolidated areas (facilitated by the improvement of access and grouping of parcels). - 50 -
27. Component 4: Improvement of basic rural infrastructure in the project area (USD 20.98 million or 36.7% of total project cost). This component would support the rehabilitation and/or construction of basic rural infrastructure19, mainly rural roads, and of individual or communal potable water systems in order to improve beneficiary community access to these services in remotely located areas. The project will finance improved access schemes for new sectors in each governorate to serve as a strategic framework for basic PDC implementation and annual programming of rural roads. 28. Sub-component 4.1: Rehabilitation and construction of rural roads. For second generation (consolidation) PDCs, the project will rehabilitate old degraded roads, consisting mainly in the repair of weak spots, so as to improve road usability. The estimated aggregated length for this type of intervention is almost 580 km. The project will also support the construction of secondary roads, which link villages (douars) and will be found mainly in basic PDCs. Construction will include technical studies as well as monitoring and supervision of works. Based on experience from the PNO3, around 200 km of secondary roads are planned. 29. Sub-component 4.2: Improvement of access to potable water. Improvements include two main types of structures: individual water tanks and potable water connection systems. Water tanks are justified in those villages where no other supply source is possible and where demand was very high under the PNO3. The project will only finance materials for construction, with labor costs being covered by beneficiaries. Indicatively, 570 water tanks are planned over the six years of the project. Additionally, nine potable water connection systems are planned for selected communities, which could then be connected to existing water distribution networks.
19 As was the case under the PNO3, the project will not finance basic infrastructure such as schools and health centers or clinics that fall under the jurisdiction of other line ministries. Similar demand for investments in the PDCs that are beyond the mandate of Odesypano and MARHP will be transmitted to the relevant ministry for consideration and eventual financing. - 51 -
Annex 5: Project Costs TUNISIA: 4th Northwest Mountainous & Forested Areas Development Project (PNO4) 5.A. Costs by Component (US$ million) Project Cost By Component and/or Activity Local Foreign Total 1. Institutional support and technical assistance for PDC 4.39 0.16 4.55 preparation and implementation in the project area 2. Support for agricultural and pastoral production and 4.22 - 4.22 income-generating activities in the project area 3. Consolidation, protection, and management of natural 23.22 - 23.22 resources in the project area 4. Improvement of basic rural infrastructure in the 18.53 - 18.53 project area
Total Baseline Cost 50.36 0.16 50.52 Physical Contingencies 2.20 0.00 2.20 Price Contingencies 4.34 0.00 4.34 Total Project Costs1 56.90 0.16 57.06 Front-end Fee 0.10 0.00 0.10 Total Financing Required 57.00 0.16 57.16 1 Identifiable taxes and duties are USD 5.63 million and the total project cost, net of taxes, is USD 51.34 million. Therefore, the share of project cost net of taxes is 90.1%.
5. B. Project Financing Sources Indicative Costs, Incl. Contingency % IBRD % Bank Component (US$M) Total (US$M) Financing 1. Institutional support and technical assistance for 4.97 8.7 3.0 60.2 PDC preparation and implementation in the project area 2. Support for agricultural and pastoral production and 4.71 8.2 3.68 78.2 income-generating activities in the project area 3. Consolidation, protection, and management of 26.50 46.4 19.04 71.8 natural resources in the project area 4. Improvement of basic rural infrastructure in the 20.98 36.7 15.88 75.7 project area Total 57.16 100 41.60 72.8
5. C. Allocation of Loan Proceeds Allocation of Loan % Expenditures to Proceeds be Financed by the Expenditure Category (USD M 2) Loan A. Works 30.93 80 B. Goods 2.19 80 C. Consultants’ services and Training 5.26 88 D. Front-end Fee 0.10 E Unallocated 3.12 Total 41.60 2. The Euro amounts of the allocations expressed here in USD equivalent are provided in Annex 7, Section 4 of the PAD
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Annex 6: Implementation Arrangements TUNISIA: 4th Northwest Mountainous & Forested Areas Development Project (PNO4)
1. Implementation Period: Six Years Executing entities: 2. Steering Committee. The CNC established for the PNO3 under the chairmanship of the DGFIOP of the MARHP will continue under the PNO4 to oversee general project implementation and ensure that the directions chosen, actions undertaken and results achieved are in accordance with relevant project documents and agreements. More specifically, the CNC will ensure that action plans and annual budgets prepared are well in line with project objectives and with other regional/local programs and investments. Other CNC members will include the MDCI, MIDL, and MdF, as well as other relevant General Directorates of the MARHP (including the DGF and the DGACTA). 3. Implementation Agency - Odesypano. The Odesypano, under the oversight of the MARHP, will have direct and overall responsibility for project implementation through its central and regional directorates and offices. The Odesypano is a state-owned, autonomous entity created in 1981 (Law 81-17) and an EPNA since 1996, with the main mandate of protecting vulnerable ecosystems and developing rural infrastructure in the Northwest region of Tunisia. It is a decentralized structure headquartered in Béja with regional jurisdiction to implement national development policies in the five governorates of Béja, Bizerte, Jendouba, Le Kef, and Siliana. As the governmental executing agency, the Odesypano will have will have sole responsibility in all project management and coordination, technical, administrative, fiduciary, and safeguard-related matters. More specifically, the Odesypano’s main responsibilities include: (i) project coordination, administration, and management; (ii) technical implementation of all components; (iii) overall fiduciary (financial and procurement) and safeguard management; (iv) project M&E, including maintenance and updating of the project MIS and GIS; and (v) project reporting and auditing. Proceeds of the loan supporting the PNO4 project will be made available to the Odesypano by the Government through budgetary allocations. 4. Internally, the existing Odesypano Executive Board/Conseil d’Entreprise will be used as a coordinating committee at the regional level for the implementation of PNO4 activities. The Board is chaired by Odesypano’s Director General and includes representatives from the MARHP, MDCI, and MdF, as well as from the regional and local public administrations of each of the five governorates, and the UTAP. The Odesypano central directorate, its four regional directorates and its regional branch in Siliana, will support the communities with PDC and CPA preparation, execution, and M&E, as well as promote partnerships at the regional and local levels and facilitate the integration of PDCs/CPAs in other partners development program and investment plans. The Project Coordinator for the PNO3, who is a senior professional, will continue to assist the General Director with project implementation and monitoring. Specifically, the Coordinator will be responsible for preparing periodic work programs and methodological tools for monitoring, and the various progress reports required by the CNC and the World Bank as co-financers. The Coordinator will also ensure efficient coordination with Odesypano partners, particularly on the exchange of information and organization of common activities. At the local level, the Odesypano CACs, in close collaboration with OLBs (particularly GDAPs), will be in charge of coordinating project activities in the context of the preparation, validation, and implementation of PDCs covering their respective administrative sectors.
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5. Local grassroots organizations (OLBs). OLBs (GDAPs and CDs), as representatives of their respective populations, will represent the institutional interface and first interlocutor for all public authorities in terms of planning and programming of interventions in the sectors involved. They will be expected to: (i) participate in the whole PDC preparation process for their sectors (development needs assessment and prioritization); (ii) participate in the implementation of PDCs through CPAs negotiated within the CLD; and (iii) coordinate more intensively the development of their respective sectors with support of the Odesypano and consultative processes. 6. Existing Regional Councils and Local Development Council constitute the formal consultative channels and institutional platforms at the regional and local levels for PDCs/CPAs validation and approval, as well as integration in and articulation with (including financing and execution) other regional or local development programs and investment plans. (i) CRs. The CR’s territorial jurisdiction is the governorate. It is chaired by the Governor, the highest regional authority, and is the formal institutional channel where PDCs/CPAs are submitted by the multi-sector planning commission (the most appropriate body, see below) for official validation. Partnerships will be materialized at this level, along with the allocation and distribution of financing for activities, programming and budgeting of these activities, the search for complementary financing, and negotiations (through their respective multi-sector commission and technical committee for monitoring). (ii) CLDs. The CLD’s geographic jurisdiction is the delegation (sub-regional level). CLDs are chaired by delegates (the Governor's representatives at the delegation level) and are responsible for examining issues pertaining to the socio-economic development of their delegation as well as local development programs and projects. CLDs facilitate the mobilization of partners and complementary financing at the local level, with a view to ensuring the coherence and coordination of project activities with other local programs and projects. CLDs will be supported during the organization of the preparation, validation, and execution process, particularly in order to play a more advanced role in terms of M&E for the PDCs/CPAs under the PNO4. 7. Other governmental partners. The regional directorates of technical ministries will intervene on the basis of coordination by the CR (in reference to the inter-ministerial convention/circular). For each partner, the modalities and mechanisms to adopt/follow for planning, programming, carrying out, and monitoring the planned investments aimed at the development of administrative sectors under the PNO4, will be specified. The regional directorates are expected to participate in PDC and CPA preparation, financing, and execution, within the limits of their mandates and respective attributions. They will also be called upon to provide all the information pertaining to the outcomes and impacts of their activities in the context of CPAs and to participate in periodic discussions within the CLDs and the CR on questions relating to programming, budgeting, and implementation. The CRDAs, DGF, DGACTA, OEP, and AFA are all expected to collaborate on the execution of investments and programs. 8. Other non-governmental partners. The NGOs, ADLs, and the BTS involved in the development of areas within the sectors and delegations covered by the PNO4, will implement their programs and activities according to the modalities in the framework agreement concluded with each governorate, as with the governmental partners. They will participate in the CLD and CR consultative meetings and prepare their development interventions and programs within the PDCs/CPAs in collaboration with other partners.
- 54 -
Consultancies, private firms, individual consultants, and small-scale workers (tâcherons), will perform specific tasks on a contractual basis. 9. Financing scheme. The project will support the preparation of participatory PDCs and CPAs in consultation with communities, local/regional authorities and other partners. Activities and investments prioritized in PDCs will be funded as appropriate directly by relevant sector ministries, governorates and delegations, or main partner agencies from their own budgets (for instance roads by the Ministry for Equipment, schools by the education Ministry of Education, etc.). The PNO4, for its part, will only finance relevant activities for PDCs/CPAs in the areas of agricultural and pastoral production, related income-generating activities, consolidation, protection, and sustainable management of natural resources, and improvement of basic rural infrastructure (primarily rural roads and water supply). Community counterpart contributions are required for PNO4-supported sub-projects. Funding by the partner agencies mentioned above are not counted as project co-financing (as these are still to be determined depending on which investment sub-projects are selected in the PDCs). Table 6.A: PDC Investment Financing Scheme under the PNO4 Co-financing * Parallel Financing (not (included in PNO4 Financing plan) included in the PNO4 financing plan) Odesypano/ GOT/ Beneficiary Partner entities PNO4 MARHP Communities 1. PDC/CPA Preparation X X -- -- 2. PDC/CPA implementation: - Agriculture and Rural Development X X X -- Investments: . AGR micro-projects X X X -- . Soil conservation, tree planting X X X -- . Water wells/tanks X X X -- . Rural road rehabilitation X X X -- . etc. X X X -- - Other Sector Investments: ------X . Education sector investments ------X . Health sector investments ------X . etc. ------X * PNO4 co-financing of sub-projects identified and approved in PDCs/CPAs does not entail a direct transfer of funds to beneficiary organizations, as the Odesypano has the sole responsibility of centrally procuring corresponding goods, works and consultant services.
10. Operational procedures. The proposed project would be implemented according to detailed procedures defined in the Operations Manual.
- 55 -
Box 6.A: PDC and CPA Preparation and Implementation Cycles and Timetable
Evaluation des Choix des PDC et replanification secteurs 10 1
Evaluation Sensibilisation annuelle des 9 partenaires et CPA 2 populations
Etablissement Cycle d’élaboration du PDC Appui à la et exécution 8 3 création des des CPA CD/GDA
Validation PDC 7 Diagnostic au niveau CLD 4 participatif puis CR
6 5 Validation des Préparation résultats du document diagnostic au PDC niveau CLD
Exécution des Evaluation CPA CPA antérieur 6 7
Préparation à la mise en œuvre Etablissement des CPA 5 1 Projet CPA (passation des marchés…) Cycle préparation et mise en œuvre CPA
Etablissement 4 et signature du Demande de CPA par GDA et 2 budget CLD 3 Approbation des budgets
- 56 -
Appendices: Appendix 6.I. Organizational Diagram of the Odesypano Appendix 6.II. Summary of Institutions Involved Appendix 6.III. Outline of Basic Principles and Role of Key Various Stakeholders
- 57 -
Appendix 6.I: Organizational Diagram of the Odesypano
Direction Générale
Unité Unité Unité Unité Coordination Promotion de l'API Audit Interne et Informatique de Projets et du Partenariat Contrôle de Gestion
Direction Direction Direction Direction Planification Animation Rurale Ressources Humaines Affaires Financières et Suivi-Evaluation et Appui Technique et Formation
Sous-Direction Animation Rurale Sous-Direction Sous-Direction Sous-Direction et Appui Technique Planification Financière et Administrative et et Budget Comptable juridique
Sous-Direction Promotion des OSP et micro-Projet
Sous-Direction Sous-Direction Sous-Direction Sous-Direction Gestion des Approvisionnement Suivi-Evaluation aménagements Ressources Humaines et Matériels et Infrastructures et de la Formation
Direction Régionale Direction Régionale Direction Régionale Direction Régionale De Sejnane Du Kef De Béja De Ain Draham
ORGANIGRAMME DE L’ODESYPANO - 58 -
Appendix 6.II: Summary of Institutions Involved
Organizations Responsible Department/Unit Main Responsibilities
Ministry of Agriculture, Hydraulic General Directorates/Services Formulation, implementation and monitoring of Resources and Fisheries/Ministère de agricultural policies and strategies. l’Agriculture, des Ressources
Hydrauliques et de la Pêche (MARHP)
Ministry of Interior and Local General Directorates/Services Preparation, execution and monitoring of local National Development/Ministère de l’Intérieur et development programs/plans through the governorates, Level du Développement Local (MIDL) delegations and administrative sectors.
Ministry of Development and General Directorates/Services Formulation of development policies and strategies, International Cooperation/Ministère du preparation and monitoring of PDES through other Développement et de la Coopération ministries, management of cooperation relations with International (MDCI) partners (donors, cooperation agencies). Seeking out financing, arbitrating budgets, cooperation, project preparation and execution.
Ministry of Finance/Ministère des General Directorates/Services Budget arbitration and monitoring, financial resources Finances (MdF) allocation.
Governorates of Béja, Bizerte, Jendouba, Governorate administration (Governor, Coordination and piloting of regional development
Le Kef et Siliana Secretary General and services) (formulation, implementation and monitoring of the
PDES at the regional level, management of other Regional Council/Conseil Régional regional development programs and specific projects). (legislative body chaired by the Governor and composed of elected Mobilization of partners for the preparation, financing Regional deputies and representatives of the and execution of PDCs/CPAs in the context of the Level regional directorates of technical/sectoral PNO4, official approval and monitoring of ministries) PDCs/CPAs.
Regional Directorates of Directorates/Services Participation in PDES preparation for their respective technical/sectoral ministries (CRDAs of areas of expertise/responsibilities.
- 59 - the MARHP, Ministry of Transport, etc.) Participation in the preparation, financing and and of other governmental organizations execution of PDCs/CPAs in the context of the PNO4. (AFA, OEP, etc.)
Delegations within the governorates of Delegation administrations (Delegates Coordination and piloting of local development Sub- Béja, Bizerte, Jendouba, Le Kef et Siliana named by the Governor and the (formulation, implementation and monitoring of the regional administration services) PDES at the delegation level, management of other Level local development programs and specific projects). CLDs (consultative body composed of elected and local administration Validation, coordination and monitoring of representatives) PDCs/CPAs in the context of the PNO4.
Administrative Sectors (Imadas) CDs and GDAPs Identification of development needs, participation in
the preparation, financing and execution of Local Government officials PDCs/CPAs in the context of the PNO4. Level ADLs and NGOs ADL and NGO representatives Specifically for GDAPs: Gradual lead responsibility for the preparation, execution and monitoring of PDCs/CPAs.
- 60 - Appendix 6.III: Outline of Basic Principles and Role of Key Various Stakeholders
1. Project stakeholder description. One underlying PNO4 objective is to support the role of communities in their own development and also to reinforce the role of CRs and CLDs in preparing and implementing investment programs and projects in their intervention areas, particularly in the case of administrative sectors and delegations covered by the project. The proposed institutional arrangements are aimed at reinforcing this orientation and perpetuating the operational modalities and consultation mechanisms set up during the planning, programming, implementation, and M&E of investments in the mountainous and forested areas of the Northwest region beyond the project investment period. The institutional arrangements also aim to refocus the Odesypano’s efforts and increase its capacity in terms of supporting administrative sectors and communities as well as CRs and CLDs, with regard to their respective responsibilities in participatory local development. 2. The general implementation process mainly involves support for communities, within administrative sectors in the mountainous and forested areas, and for PDCs/CPAs preparation and execution, in partnership with all other stakeholders involved in development. The main stakeholders in this process will be: (i) The Odesypano; (ii) The governorate administrations in Béja, Bizerte, Jendouba, Le Kef, and Siliana, which represent the highest governmental authorities through the CR and CLDs; (iii) The CRDAs in Béja, Bizerte, Jendouba, Le Kef, and Siliana; (iv) The Regional Directorates of other technical ministries than the MARHP as well as other development agencies such as the OEP, AVFA, Agricultural Research and Agricultural Research and Higher Education Institute/Institut de Recherche et d’Enseignement Supérieur Agricole (IRESA), and BTS; (v) Other non-governmental partners, mainly NGOs and ADLs; (vi) The GDAPs serving as institutional interfaces between the CLDs, representing the public institutions involved, and the populations covered in each administrative sector; and (vii) Some central directorates of ministries, namely the DGFIOP, DGF and DGACTA of the MARHP, the DGI and DGCFM of the MDCI, and the MdF representative at the central level. 3. The PNO4 will follow the same institutional arrangements as the PNO3. On behalf of the Government of Tunisia, the Odesypano, under the MARHP, will be the governmental implementing entity responsible for project implementation. An inter-ministerial CNC chaired by the MARHP will serve as the overall steering committee of the project. Other entities involved in project implementation include: the regional and local councils of the regional and local administrations, locally-based organizations or OLBs (formalized GDAPs and CDs), and various other partner agencies or entities.20 The role and responsibilities of each of these entities are described below. 4. Basic principles. The institutional arrangements for the project are based on the following strategic principles:
20 The partner entities include: the AFA, CDRAs, DGF, Office of Livestock and Pasture/Office de l’Élevage et des Pâturages (OEP), Agricultural Extension and Training Agency/Agence de Vulgarisation et de Formation Agricole (AVFA), Tunis International Center for Environmental Technologies /Centre International des Technologies de l’Environnement de Tunis (CITET) and various NGOs. - 61 -
(i) Increasing Odesypano staff will not be feasible in the coming years, especially concerning field advisors and subject-matter specialists. The Odesypano will thus have to gradually reduce its role to providing support services to communities, public administrations at the regional and local levels (through CRs and CLDs), and to other partners involved in the development of the mountainous and forested areas. The Odesypano will eventually have to subcontract routine tasks insofar as possible, such as the supervision of civil works and information/sensitization sessions to communities. In any event, the planned extension of Odesypano interventions in new sectors will make this fall back on a more supportive role inevitable. (ii) There is a consensus that the current structures and organization of the Odesypano will still be adequate for PNO4 implementation. (iii) At PNO3 completion, it was estimated that the project had financed 70 percent on average of all CPAs within the PDCs, the remaining 30 percent being covered by contributions from partners. Under the PNO4, the end-of-project target for the partner contributions is fixed at 40 percent.
Box 6.B: Main potential partners to support AGR promotion and Rural Enterprises under the PNO4 The Tunisian Bank for Solidarity/Banque Tunisienne de Solidarité (BTS): Financing of self-employment, job creation activities (micro-enterprises, small service trades, agricultural consolidation activities, etc.). The Local Development Associations/Associations de Développement Local (ADL): Created at the level of each delegation, they are tasked with managing the funds obtained from the BTS and destined to micro-credits and supporting all activities linked with the distribution and recovery of micro-credits. ADLs should normally ensure the identification of needs in their intervention areas, undertake learning and professional training actions for the benefit of beneficiaries, and accompany them in the technical and economic monitoring of their projects. The Bank for Financing of Small and Medium Enterprises/Banque de Financement des petites et Moyennes Entreprises (BFPME): Created in March of 2005 in order to reinforce the support mechanism for the emergence of Small and Medium Enterprises (SMEs). It is represented by an agency at the level of each governorate. It covers the totality of advisory activities, monitoring, and financing of SMEs. The National Agency for Employment and Independent Work/Agence Nationale de l’Emploie et du Travail Indépendant (ANETI): It manages several programs for the promotion of employment and independent work, including the promotion and financing of micro-enterprises. In this area, it offers, though its regional offices: (i) information on opportunities and encouragements necessary for the creation of projects; (ii) training to aid interested parties in coming up with a project idea; (iii) support for promoters to undertake feasibility studies of their projects and to create relationships with financing sources, training for an effective management of projects, accompaniment during all stages of project development, and regular monitoring of projects after installation. The Business Centers/Centres d’Affaires: Covering all sector economic activities at the level of each governorate including: (i) information for interested parties with project ideas, promoters and investors on procedures, advantages and incentives for entrepreneurship, promising opportunities for investments and concretization of their projects (preparation of feasibility studies, finalization of financing scheme); (ii) identification of niches in the region; and (iii) organization of seminars to highlight the comparative advantages of the region. The Northwest Development Office/Office de Développement du Nord-Ouest (ODNO): Under the leadership of the MDCI, it brings support to potential project or micro-enterprise promoters to undertake feasibility studies for their projects and provide them with the necessary information in this area. It also undertakes reference studies on opportunities and niches in the region, partnering with regional operators in development.
- 62 - Annex 7: Financial Management and Disbursement Arrangements TUNISIA: 4th Northwest Mountainous & Forested Areas Development Project (PNO4)
1. Evaluation Summary of Financial Management and Related Arrangements
1.1. The Project 1. The project was designed to improve the socio-economic conditions of the rural populations through the implementation of the integrated participatory partnership approach of communal development. 2. Project objectives. The project objectives are to improve the socio-economic conditions of the rural population and promote better protection and management of natural resources in the project area using an integrated participatory approach to community-based development. 3. Project components. The project consists of four components, the details of which are outlined in Annex 4. 4. Program cost and duration. The total cost of the project is approximately USD 57.16 million, of which USD 41.60 million will be financed by the International Bank for Reconstruction and Development (IBRD), and USD 9.24 million by the Government, through the Odesypano. The balance, USD 6.32 million, will be financed by the contributions from local beneficiary communities (in cash or in kind). Project implementation will begin in 2011 for a period of six years. A detailed breakdown of the total cost by component is presented in Annex 5. 1.2 Institutional arrangements 5. The project will be implemented by the Odesypano, which is an EPNA that is financially autonomous. It operates under the tutelage of the MARHP. As the previous Bank- financed projects have been well managed by the Odesypano, this new project will assume the same institutional arrangements for the loan. The CNC chaired by the DGFIOP will provide overall monitoring. Details of the institutional arrangements are presented in Annex 6. 1.3. Summary of financial management arrangements
6. The evaluation confirmed that the project will be implemented in Tunisia partially using the country-based system governed by the budgetary legislation, and will use the existing skills and human resources within the Odesypano. The project expenditures will be part of the Odesypano’s budget. The Odesypano uses an accrual accounting method as required by the Accounting System for Enterprises promulgated by Law 96-112 of December 1st, 1996. The Odesypano’s financial statements are reconciled by December 31 of each fiscal year as follows: (i) a balance sheet statement; (ii) an income statement; (iii) a statement of treasury flows; and (iv) financial statement notes. The information to produce the Interim Unaudited Financial Reports (IUFRs) of the project, which needs a cumulative statement since the beginning of project implementation, will be extracted from the accounting system for the statement of sources and uses of funds. The IUFRs will then be prepared on an Excel spreadsheet. However, the MIS will directly produce the statements of commitments and payments for the period and cumulative by components, sub-components and by financing sources. The MIS includes five modules: (a) budgeting; (b) accounting; (c) treasury; (d) provision; and (e) human resources. 7. The main risks identified during evaluation are: (i) the control of the beneficiaries’ contribution in cash or in kind; (ii) the control of the distribution of goods and genitors (bulls,
- 63 - rams, and goats) to the communities; (iii) the flow of information between the central and regional levels; and (iv) the fact that many technical, financial, and accounting staff of the Odesypano will go into retirement in the next five years. These risks are mitigated by: (a) opening an Account at Post Offices for the funds coming from the beneficiaries’ contributions in cash, with their delivery of a receipt of payment of their contribution to the Odesypano, and for the contribution in kind, respect of the Odesypano criteria and approval by a commission for receipt of works in the field in presence of the beneficiary, enterprise, CD and GDA; (b) distributing goods and genitors in the presence of the beneficiary, CD and GDA, with the signature of a receipt by the beneficiaries; (c) recording commitments in the MIS at the regional level, which is connected to the central level (payments are recorded by the MIS at the central level, original documentation [contracts, invoices] is maintained at the central level, and the regional level keeps copies of this documentation); and (d) a gradual departing for retirement, with the Odesypano hiring new staff to replace most of the retirees. 8. Based on the findings of the financial management capacity assessment and the actions already implemented or foreseen to manage identified risks and weaknesses, the residual financial management risk is assessed as Low.
2. Detailed Evaluation of Financial Management and Related Arrangements
9. During project preparation, a financial management capacity assessment of the Odesypano was carried out to determine if it complies with the Bank requirements for project management. This involved: (i) a series of meetings held with various representatives from financial, accounting, budget, and internal auditing departments of the Odesypano and also with the Odesypano Regional Directorate of Le Kef; and (ii) the response to the Bank Financial Management questionnaire. 10. The financial management assessment covered the human resources, accounting system, internal control mechanism, external audit, information system, and capacities of the project reporting system. 11. The capacity assessment focused on ensuring that procedures and criteria are in place to ensure satisfactory financial management before any expenditure could take place and that mechanisms are in place to ensure adequate financial reporting as well as ex-post review after expenditures. The objective is to ensure that the funds are used for intended purposes. 2.1. Detailed evaluation of financial management 12. The country's overall system. Given the experience acquired by the World Bank in the country and the conclusions from the Public Expenditure and Financial Accountability (PEFA), it is clear that the Tunisian public finance system is governed by an elaborate legal and regulatory framework that offers strong reliability and transparency safeguards. This system relies not only upon the principle of the strict separation of the functions of authorizing officers and finance officers but also on key internal control rules governing ex- ante expenditure and internal and external auditing rules. The Tunisian system also relies upon high quality administrative structures and strong human and material resources. Overall, the Tunisian public expenditure system can be considered to present a low budgetary and financing risk factor. 13. Moreover, the controls of the public sector operate in a very complete legal and authorization framework by the Ministries of tutelages and by organs of audit and control. The full panoply of audit arrangements is in place (internal and external audit, a priori and a posteriori), ensuring effective auditing in the public sector.
- 64 - 14. Past experience in the sector. This project is the fourth to be financed by the World Bank in the sector and implemented by the Odesypano. Thus, the Odesypano has acquired significant experience in managing projects implemented through external financing. Therefore, this project can capitalize upon the experience acquired by the Odesypano. 15. Analysis of identified risks. The evaluation identified the following risks: Inherent Risks Risk Risk Risk before Mitigating Measures (MM) After MM MM Country level The Tunisian public finance system is Low The project’s financial management Low governed by an elaborate legal and will use Odesypano systems. These regulatory framework that offers systems are based on Government strong reliability and transparency laws and regulations. safeguards. The Tunisian public expenditure system presents a low budgetary and financing risk factor. Project level Control of the beneficiaries’ Moderate An account at Post Offices will be Low contribution in cash or in kind should opemed for the funds coming from the be reinforced. beneficiaries’ contributions in cash, with their delivery of a receipt of payment of their contribution to the Odesypano, and for the contribution in kind, respect of the Odesypano criteria and approval by a commission for receipt of works in the field in presence of the beneficiary, enterprise, CD and GDA. Control of distribution of goods and Moderate The distribution of goods and genitors Low genitors (bulls, rams and goats) to the will de completed in the presence of communities should be reinforced. the beneficiary, CD and GDA, with the signature of a receipt by the beneficiaries. Assistance to small-scale rural Moderate The Odesypano will procure and Low enterprises as a pilot initiative. transfer the assistance in kind to these enterprises through the GDAPs (no cash transfer). Flow of information between the Moderate Commitments are recorded in the MIS Low central and regional levels. at the regional level, which is connected to the central level. Payments are recorded by the MIS at the central level, original documentation (contracts, invoices) is
maintained at the central level, and the
regional level keeps copies of this
documentation).
Many technical, financial and Moderate The staff departure into retirement will Low accounting staff of the Odesypano be gradual and the Odesypano will
- 65 - will go into retirement in the next five hire new staff to replace most of these years. retirees. Transparency risk: corruption is well Moderate Use of Odesypano systems and Low controlled in most segments of the controls, which are based on economy. Government laws and regulations.
Inherent Risk Before MM Moderate Inherent Risk after MM Low
Control Risks Risk Risk before After Risk MM Mitigating Measures (MM) MM Budgeting Low Low The Odesypano is responsible for the preparation of annual budgets (operating and investment) submitted for approval by its Ministry of tutelage (MARHP) and MdF. Accounting Low The Odesypano will communicate Low The Odesypano uses an accrual on a yearly basis audited entity accounting method as required by the financial statements. Accounting System for Enterprises promulgated by Law 96-112 of December1, 1996. Financial Reporting Low Reconciling the project accounts Low The project financial management is and the main Odesypano integrated into the Odesypano accounting system. accounting system, which allows for an adequate follow-up of project financial management and to extract the main information to produce IUFRs. The MIS will directly produce the statements of commitments and payments by components, sub- components, and by financing sources. Flow of funds Low Opening one Designated Account Low Financial flows come from the World and having the Central Bank issue Bank, with counterpart funds financed payments and advise Odesypano by the Odesypano, and from the accordingly. populations. Flows of funds from the World Bank are organized according to the traditional Bank disbursement procedures. Auditing Low Low The Odesypano will submit annual audited project financial reports to the Bank. Control Risk Before MM Moderate Control Risk after MM Low
16. Evaluation of Overall Risk. The financial management residual risk at this stage is deemed to be low. 2.2. Financial management arrangements
- 66 - Financial management system 17. Overall Framework. The Odesypano financial department is well structured. The existing human resource capacity is adequate to carry out the financial management tasks of projects financed by donors and mainly by the Bank. The financial management systems are satisfactory. The staff which will ensure the financial management of the project is thus already on staff and ensured sound financial management of PNO3. 18. Operations Manual. The Odesypano hired a consultant to prepare an Operations Manual for the project. The Manual covers all project activities and was ready before the loan negotiations. Project commitments and payment procedures are in compliance with Bank guidelines. 19. Budgeting System. The Odesypano is responsible for the preparation of annual budgets (operating and investment). These are approved by its Executive Board/Conseil d’Entreprise, and then discussed and validated by MdF and its Ministry of tutelage (MARHP). Counterpart funds will be available from annual Odesypano budgets and beneficiary contributions. Institutional arrangements 20. The technical and regional directorates of the Odesypano will be in charge of the project implementation. The Project Coordinator, a representative of the Director General, will assist these directorates and coordinate project implementation with the other partnerships. 21. Both the financial directorate and the planning, monitoring, and evaluation directorate will be in charge of the financial management of the project. The financial directorate is responsible for the control and the accounting of all transactions and the planning, monitoring, and evaluation directorate will produce the budgeting, commitments and payments statements, by components, sub-components, and financing sources directly through the MIS. 22. The Project Coordinator will be responsible for managing communications with the Bank, the collection of technical and financial information from technical, financial, and planning directorates, and the timely preparation, consolidation, and transmission of required reports (semi-annual technical and financial progress reports, annual reports, and audit reports). 23. The detailed institutional arrangements are presented in Annex 6. Flow of information Stage Actions Liable 1 Community Development Plan / Plan de Développement Regional Department and Communautaire (PDC) beneficiaries 2 Annual Program Contract / Contrat Programme Annuel (CPA) Regional Department and beneficiaries 3 Record of CPAs in the system: Regional Department Record of physical forecasts of CPAs in the follow-up of the physical realizations system Record of the budget forecasts of CPAs in the budgeting system 4 Procurement procedures Regional Department/DAF 5 Record of the commitments (signed contracts) in the budgeting Regional Department system 6 Record of the monthly physical realizations in the system Regional Department
- 67 - 7 Record of the invoice in the provision system Regional Department 8 Transfer of the ‘physical’ file (contract, invoice) to the central Regional Department level. The ‘electronic’ file can only be consulted at the central level, modifications are not allowed 9 Procedures control of the invoice at the central level Financial, Accounting, Financial Manager, Director General 10 Payment order signed by both the Financial Manager and Financial Manager, Director General Director General 11 Record of the payment order in the financial system Financial (central level) 12 Record of the payment in the accounting system Accountant (central level) 13 Payment by bank transfer Financial (central level) * The Odesypano has an integrated system (budget, financial, accounting, human resources).
Project accounting system 24. The transactions will be registered in the accounting system by the accountant and checked by the financial directorate. This directorate will extract information from this system to prepare the statement of sources and uses of funds on an Excel spreadsheet, before their transmission to the coordinator to finalize the IUFRs with the information collected from the planning, monitoring and evaluation directorate. Periodical reconciliation between accounting statements and IUFRs is also done by the financial directorate. 25. The general accounting principles for the Project are as follows: (i) Project accounting will cover all sources and all uses of project funds including payments made and expenses incurred. All transactions related to the project (whether or not they involve cash expenditures) will be entered into the accounting system and the appropriate reports. Disbursements made from the Designated Account opened with the BCT will also be entered into the project accounting system. The counterpart funds will be subject to separate accounting. (ii) Project transactions and activities will be distinguished from the other activities undertaken by the Odesypano. Financial statements summarizing the commitments, receipts, and expenditures made under the project should be produced every semester, using the templates established for this purpose and sent to the financial and accounting department. (iii)The project chart of accounts will be compliant with the classification of expenditures and sources of funds indicated in the project documents (Project Appraisal Document) and the general budget breakdown. The chart of accounts should allow for data entry to facilitate the financial monitoring of project expenditures.
3. Project reporting system
26. Interim Unaudited Financial Reports (IUFRs). Interim financial reports, including loan, beneficiary contributions, and Odesypano contributions, should include data on the financial situation of the project. These reports should include: (i) a statement of sources, (indicating funds coming from the loan, beneficiary contributions, and the Odesypano’s budget, separately), and uses of funds for the reporting period with cumulative figures, including a statement of the project balance of account; (ii) a statement of use of funds by component and by expenditure category; and (iii) a reconciliation statement for the Designated Account. The Borrower will prepare and furnish to the Bank no later than forty
- 68 - five (45) days after the end of each calendar semester, IUFRs for the project covering the semester, in form and substance satisfactory to the Bank. 27. Project Financial Statements (PFS). The project financial statements will be produced annually by the Odesypano with a clear distinction between the loan, beneficiary contributions, and Odesypano contributions. The PFS should include: (i) a cash flow statement; (ii) a closing statement of financial position; (iii) a statement of ongoing commitments; and (iv) an analysis of payments and withdrawals from the loan account. 28. The Odesypano uses Excel spreadsheets to prepare the statements of sources and uses of funds by extracting the information from the accounting system. However, the MIS will directly produce the statements of commitments and payments for the period and cumulative by components, sub-components, and by financing sources. Internal controls 29. The internal control system set within the Odesypano guarantees the separation of the functions through several levels of independent controls that have been deemed satisfactory by the Bank: (i) formal organizational structure of Odesypano; (ii) authorization by the Director General of the Odesypano, who is the signatory of all payment orders; (iii) control performed by the state controller; and (iv) tutelage of the MARHP, Office of the Prime Minister, and MdF, in accordance with legislation and regulations. 30. In addition, the Odesypano has an internal audit department, and the financed project- related transactions will be subject to their regular reviews. The audit department has a well established statement of mission objectives which include, inter-alia, ensuring that procedures set in the Operations Manual are enforced, conducting internal audit missions, and reinforcing the coordination among the various operating aspects of the Odesypano. Audit of the Project Financial Statements 31. The financial statements of the Odesypano are subject to an annual external audit by a certified auditor from the Order of Expert Accountants of Tunisia/Ordre des Experts Comptables de Tunisie. During project implementation, the Odesypano will submit to the Bank within six months from the closure of each fiscal year, the audit of its annual financial statements. 32. In addition, the annual audit will cover all project aspects and resources, including the Odesypano’s budget, as well as all uses of funds and all committed expenditures of the project. It will also cover the financial operations, internal control, and financial management system and will also include a comprehensive review of statements of expenses (SOEs). The audit will cover field visits and verification of samples of the works financed by the project. The audit will be conducted by an auditor acceptable to the Bank and in compliance with International Standards of Auditing and terms of reference acceptable to the Bank. The auditor will produce: (i) an annual audit report, including his opinion on the project annual financial statements; and (ii) a report on internal control weaknesses observed while performing his task, with practical recommendations for improving the project’s internal control system. The reports will be sent to the IBRD within six months starting from the closing date of each fiscal year. The external auditor of the Odesypano will be appointed as the project auditor as well. The auditor issued a qualified opinion concerning the Odesypano in 2007, 2008 and 2009. The qualifications were concerned with the delay of land registration of the Odesypano, which is overseeing the regularization of the situation.
- 69 - 4. Disbursement Arrangements
33. The proceeds of the loan will be disbursed in accordance with World Bank guidelines and will be used to finance project activities. Withdrawals from the loan will be made through direct payments, requests for reimbursement accompanied by supporting documentation, or advances to the Designated Account. 34. Retroactive financing. Payments for eligible expenditures made prior to the date of signature of the Financing Agreement may be made on the condition that the payments were made on or after July 16, 2010 and do not exceed an aggregate amount of USD 1.5 million. 35. Flow of funds. The withdrawal application of the loan will be signed by the Director General of the Odesypano. Payment requests will then be sent to the BCT, which will proceed to make the payments. 36. Counterpart funds are available in the Odesypano’s budget, and it will be the responsible for these payments. Beneficiary contributions will be primarily in kind (working days) and could be in cash. The Odesypano will use an open Account at the Post Office dedicated to receiving funds coming from the beneficiaries to finance their contributions. Beneficiaries will not pay the Odesypano directly, but will submit to the Odesypano a certificate of payment delivered from the Post Office. 37. Designated Account (DA). To ensure that funds are readily available for project implementation, the Odesypano would open, maintain, and operate a Designated Account (DA) at the BCT. Deposits into and payments from the DA be made in accordance with the provisions stated in the loan agreement. Disbursements under this loan will be transaction- based and include withdrawal applications for advances, direct payments, and reimbursements. Withdrawal applications will be prepared by the Odesypano and signed by authorized signatories, as designated by the representative of the borrower. The name of each of the authorized signatories and their corresponding specimen of signature will be submitted to IBRD before the first disbursement is claimed. 38. The authorized ceiling of the DA would be Euro 2,000,000. The amount to be advanced under the first application would initially be determined based on project needs. Odesypano would claim the remainder of the advance when the project has reached an advanced stage of implementation. The DA would be replenished monthly based on withdrawal applications supported by appropriate documentation, or when half of the advance to the DA has been utilized, whichever occurs first. The DA will be audited annually by external auditors acceptable to the IBRD as part of the overall project audit. 39. Statements of expenditures. All applications for withdrawal of proceeds from the loan account will be fully documented, except for: (i) expenditures under contracts with an estimated value of USD 10,000,000 or less for works; (ii) USD 1,000,000 or less for goods; (iii) USD 100,000 or less for consulting firms, and (iv) USD 50,000 or less for individual consultants, as well as all training and workshops, which will be claimed on the basis of SOEs. The documentation supporting expenditures will be retained at the Odesypano of the MARHP and will be made readily accessible for review by the external auditor and periodic Bank supervision missions. All disbursements will be subject to the conditions of the Loan Agreement and disbursement procedures defined in the Disbursement Letter.
- 70 - Amount of the Loan % of Expenditures Allocated to be Financed by the (expressed in Euro) Loan Category 1. Works 22,300,000 80% 2. Goods 1,600,000 80% 3. Consultants’ Services and Training 3,800,000 88% 4. Front-end Fee 75,250 5. Unallocated 2,324,750 Total 30,100,000
Summary of Funds Flow Diagram
Stage Action Management
Request for replenishment of the Designated Account sent 1 to the World Bank Central Bank of Tunisia
2
Invoices sent to the BCT for
payment from the designated accounts NO Odesypano
NO
Central Bank of Tunisia
Approval
YES 3
Payment of suppliers Central Bank of Tunisia
- 71 - Supervision schedule 40. The frequency and scope of World Bank supervision missions will be adapted to the needs of the project. Supervision missions will take place every six months, but may be more frequent, if needed.
5. Actions for implementation or continuation
Project implementation support actions are summarized below:
Actions to be Taken By When
Finalization and adoption of the Operations Manual Project Effectiveness
- 72 - Annex 8: Procurement Arrangements TUNISIA: 4th Northwest Mountainous & Forested Areas Development Project (PNO4)
1. General
1. The project aims to improve the socio-economic conditions of the rural population and promote better protection and management of natural resources in the project area using an integrated participatory approach to community-based development. The main beneficiaries targeted by the project are community-based grassroots organizations, regional and local public administrations, governmental organizations and NGOs, and local development associations in the five governorates of Béja, Bizerte, Le Kef, Jendouba, and Siliana. The project has four components: (i) institutional support for PDC preparation and implementation in the project area, (ii) support for agricultural and pastoral production and income-generating activities in the project area, (iii) consolidation, protection and management of natural resources in the project area, and (iv) improvement of basic rural infrastructure in the project area. 2. Institutional setting. The project will be implemented by the Odesypano of the MARHP. The Odesypano will implement all the activities planned in the field and will be responsible for their procurement management. 3. Procurement for the proposed project would be carried out in accordance with the World Bank’s "Guidelines: Procurement under IBRD Loans and IDA Credits" dated May 2004, revised October 2006 and 2010; and "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" dated May 2004, revised October 2006 and 2010, and the provisions stipulated in the Legal Agreements. The various items under different expenditure categories are described in general below. For each contract to be financed by the Loan, the different procurement methods or consultant selection methods, estimated costs, prior review requirements, and time frame are agreed between the Borrower and the Bank in the Procurement Plan. The Procurement Plan will be updated at least annually or as required to reflect the actual project implementation needs and improvements in institutional capacity. 4. Procurement of Works. Works procured under this project would include: (i) infrastructure: rural roads (new and rehabilitation), drinking water connection projects including rehabilitation or new projects, etc.; (ii) works to mobilize water (streams, wells, tanks, communal water supply systems, etc.); (iii) works for soil and water conservation (construction of contour thresholds [mainly stones] and ados [ditches and embankments], construction of stone sills acting to slow down runoff and trap sediments, construction of small basins, etc.); (iv) plantations (arboriculture and pastoral plantations, “vegetalization” of banks and ravines, consolidation works); and (v) works to set small-scale irrigation schemes, etc. Foreseen procurement methods are: National Competitive Bidding (NCB), Shopping and Direct Contracting. The procurement will be carried out using the National Standard Bidding Documents (SBDs) agreed with and satisfactory to the Bank for NCBs. 5. Procurement of Goods: Goods procured under this project would include: (i) office equipment (computers and other); (ii) materials (software and other); (iii) sensitization and field information/training equipment; (iv) vehicles (for interventions in new areas); (v) various animals for production and/or fattening (breeding bulls, rams and goats, etc.); (vi) various tree species (including olive, fig, caper, and nut trees); (vii) veterinary products for pregnancy cycles and infertility control; and (viii) equipment/materials and other supplies for handicrafts, etc. Foreseen procurement methods are: NCB, Shopping and Direct Contracting.
- 73 - The procurement will be carried out using the National SBDs agreed with and satisfactory to the Bank for NCBs. 6. Community Participation in Procurement. It has been found that for virtually all four project components, it is most desirable to call for the participation of local communities and/or NGOs in the delivery of services. The activities would cover: (i) community works (such as works for the soil and water conservation); (ii) plantations (arboriculture and pastoral plantations, “vegetalization” of banks and ravines, consolidation works); and (iii) animation, training, and sensitization of the beneficiary population. The Loan Agreement lists Community Participation in Procurement among the procurement methods, and procedures shall be further elaborated in the project Operations Manual approved by the Bank, to ensure these are efficient and are acceptable. Since the activities are community-driven and may not be defined from the outset, the Procurement Plan will allocate for each region a tentative amount when submitted for Bank approval. 7. Selection of Consultants. Consultancy services financed by the Loan will mainly include: (i) technical assistance for PDC preparation; (ii) organization of workshops for methodological strengthening of Odesypano staff on human resource management, quality control systems, preparation of a communication strategy, etc.; (iii) organization of information/sensitization seminars and training workshops for Odesypano partners; (iv) organization of field days and training workshops for OLBs; (v) carrying out of information/training days for building climate change awareness and disseminating innovative techniques and climate-appropriate adaptation measures; (vi) advisory services for agriculture production (olive trees, milk, organic farming, beekeeping, etc.); (vii) specialized training on livestock development; and (viii) training and technical assistance to AGRs for the creation of micro-projects. Shortlists of consultants for services estimated to cost less than USD 200,000 equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultancy Guidelines. The foreseen methods of selection are: (a) Quality- and Cost-based Selection, (b) Selection based on Consultants’ Qualifications, (c) Selection under Fixed Budget, (d) Least Cost Selection, (e) Single-source Selection, and (f) Procedures set forth in paragraphs 5.2 and 5.3 of the Consultant Guidelines for the Selection of Individual Consultants. 8. Single-Source Selection (SSS). SSS may be used to contract some specialized institutions and research and training centers. The institutions are Government Agencies that have legal and financial autonomy. They deal with commercial transactions. However, they are – like all specialized agencies in all sectors – not really independent, since their heads (the General Directors or “Directeur Général” are nominated by the overseeing Minister, in this case it is the Minister of Agriculture). Apart from that, the agencies are responsible for running their business in accordance with their by-laws, so they can be considered as broadly independent and eligible in line with paragraph 1.11 (b) of the Consultants Guidelines. In terms of justification of the SSS, paragraph 3.10 (d) of the Guidelines apply as these agencies are the only source that can provide the required services and have skills and experience of exceptional worth in the field of the assignment. In addition, as many contracts will be well below the equivalent of USD 100,000, then 3.10 (c) would also apply. For the research and training centers, the eligibility is justified on the basis of paragraph 1.11 (c), as they have a unique and exceptional knowledge of the context and skills, and their participation is critical to the project implementation. These agencies and research and training centers are: (i) Office of Livestock and Pasture/Office de l’Elevage et des Pâturages (OEP). Regional directorates for the specialized extension work in livestock development and milk production (estimated contracts amount is USD 1,262,500). The OEP is uniquely placed to provide the services expected (subject matter specialists) because
- 74 - of its organization, infrastructure, long experience in the field (location and knowledge), level of sophistication beyond capacity of CRDA, and long experience in promoting livestock development and milk production. (ii) Agriculture Land Agency/Agence Foncière Agricole (AFA). For land consolidation, being the only organization officially designated to provide the services expected, the AFA is represented in each Governorate and has a methodology and a level of specialization for consolidation techniques that give it a reputation and level of trust with the communities (estimated contracts are USD 1,009,000); (iii) Tunis International Center for Environmental Technologies/Centre International des Technologies de l’Environnement de Tunis (CITET). For capacity building of beneficiary stakeholders and knowledge transfer in relation to the environment. The CITET is unique and specialized in this field. It was set up to satisfy the needs of Tunisia and other countries in the Arab-African and Mediterranean region in terms of transferring, adapting, and promoting ecologically-friendly technology. The CITET aims to provide help in strengthening skills and capacities building in protecting the environment, managing natural resources, and mastering environmentally-friendly technologies, in accordance with options taken at the national level and regional priorities. Sustainable development is at the heart of the CITET’s mission. The CITET has relevant material and human resources to deliver this service in an efficient and economic manner. (iv) Regional Agricultural Training Centers under the Agricultural Extension and Training Agency Agricultural Extension and Training Agency/Agence de Vulgarisation et de Formation Agricole (AVFA) would be used by the project for dispensing specialized training (recycling, upgrading, etc.) to regional governmental organizations as well other stakeholders. These training centers are selected for being the best equipped (in infrastructure and training grounds) and having reasonable rates compared to the private sector. (v) Some Research Centers of regional Universities.
2. Assessment of the Agency’s Capacity to Implement Procurement
9. The Odesypano’s capacity to execute procurement activities in the framework of this project has been assessed in April 2010 by a World Bank team. Its report is filed with the project documents. The assessment states that the implementing entity would have the capacity to carry out and manage the procurement, under this financing, provided that the actions recommended in the Action Plan are taken before effectiveness. The Procurement Plan itself must be provided before the approval of the financing. The overall risk has been rated as Moderate. 10. The analysis of procurement capacity, as well as the issues, and risks are summarized in the Action Plan shown in Table 8.A below.
- 75 - Table 8.A: Analysis of Procurement Capacity and Action Plan
Analysis of Procurement Issues/Risks Mitigation Measures Capacity 1. Organization Availability of an adapted Avail, before The organization of the organization including a implementation start, a Odesypano would be adequate. Project Coordination project Operations Manual. Unit.
2. Facilities, Support Capacity Staff experience with Train/brief the staff on the and Staffing/Professional Bank procedures needs main Bank procedures Experience updating. (NCB, Shopping, and Staff is adequate and has Selection of Individual experience. Consultants) expected to be used in project implementation before project start. 3. Record Keeping and Filing Capacity to cope with the Train/brief the staff to System project volume of ensure that project specific Access to information during transactions and records- files are kept for all procurement post reviews would keeping requirements. procurement and related be easy. transactions and contracts are recorded within the DAF. 4. Procurement Planning The Procurement Plan The Implementing Entity would not be ready before should refine the project implementation. detailed costing and draft the project Procurement Plan. 5. Monitoring/Control Systems The lengthy review and The Odesypano should approval process by the consider, during the relevant Tunisian preparation of the procurement commissions Procurement Plan, the at the national level may different steps of review by delay effectiveness or the relevant Tunisian slow down project procurement commissions. implementation. 6. Capacity to meet Bank Report would not be Identify the person/staff Reporting Requirements provided in a timely and responsible for the adequate format. reporting as well as define clearly the content of the report(s).
3. Procurement Plan
11. The Borrower, at appraisal, developed a Procurement Plan for project implementation which provides the basis for the procurement methods. This Plan has been agreed between the Borrower and the Project Team on November 4, 2010 and is available at the Odesypano. It will also be available in the project’s database and on the Bank’s external website. The Procurement Plan will be updated in agreement with the Project Team annually or as required to reflect the actual project implementation needs and improvements in institutional capacity. As agreed during appraisal, a project Operations Manual will be prepared and will include the
- 76 - description of applicable procurement procedures, as well as the detailed Procurement Plan for the first 18 months of activity approved during negotiations.
4. Frequency of Procurement Supervision
12. In addition to the prior review supervision to be carried out from Bank offices, the capacity assessment of the Implementing Entity has recommended two supervision missions every year to visit the field and to carry out post-review of procurement actions.
5. Exceptions for Use of NCB
13. To ensure broad consistency with the Procurement Guidelines, the following provisions would be applied when using NCB under the project: (i) The bidding document clearly explains the bid evaluation, award criteria, and bidder qualification criteria; (ii) Any bidder registered in an eligible country, as defined in paragraphs 1.6 to 1.8 of the Procurement Guidelines, will be eligible to bid; therefore no restriction based on nationality of bidders or origin of goods shall apply, and foreign bidders shall not be subject to any unjustified requirement which will affect their ability to bid; (iii) Government-owned enterprises in the Borrower’s country may participate only if they can establish that they: (i) are legally and financially autonomous; (ii) operate under commercial law, and (iii) are independent from contracting entity; (iv) Bidders will be allowed to deliver their bids by mail or by hand before the expiration of the deadline for submitting bids; (v) Technical and financial envelopes are submitted together and opened in public, simultaneously during a special session open to the public for works, goods, and non-consulting services; amounts shall be read aloud during the public session; bidders or their representatives are authorized to attend the bid opening session. The date, time and place for bid opening shall be announced in the invitation to bid; these dates and times shall be the same as for the deadline for receipt of bids or immediately thereafter; (vi) Bids are evaluated on price and any other criteria disclosed in the bidding documents and quantified in monetary terms, and contracts are awarded to the qualified bidder having submitted the lowest evaluated responsive bid, and price would not be negotiated with the lowest evaluated bidder except under the provisions stated in paragraph 2.63 of the Procurement Guidelines; (vii) Procedures would include the publication of the evaluation results, the contract award, and provision for bidders to protest; (viii) If foreign firms wish to participate, they would be allowed to do so and no provision for preferential treatment of national firms or mandatory association with a national firm or prior registration in the country of the Borrower would be applied; (ix) Prior to issuing the first call for bids, a draft standard bidding document to be used under National Competitive Bidding procurement must be submitted to, and found acceptable by, the Bank; and
- 77 - (x) Each bidding document and contract for goods and works to be financed from the proceeds of the future Loan would provide that the supplier, contractor, and sub- contractor would permit the Bank, at its request, to inspect their accounts and records relating to the bid submission and performance of the contract, and to have said accounts and records audited by auditors appointed by the Bank. The deliberate and material violation by the supplier, contractor, or sub-contractor of such provision may amount to obstructive practice.
6. Details of the Procurement Arrangements Involving International Competition
14. Goods, works, and non-consulting services (a) There is no ICB foreseen. However, should it occur that contracts are estimated to cost above USD 10,000,000 per contract for Works and USD 1,000,000 for Goods, ICB will apply. In such a case, the Bank’s SBDs shall be used. ICB will be subject to prior review by the Bank as well as all direct contracting. 15. Consulting services (a) The consulting services are detailed in the procurement plan. However, there are no consulting assignments with short-list of international firms foreseen during the first 18 months of project implementation. Note that Farming Advisory Services contracts may be provided through smaller-size contracts, which could be lower than USD 200,000. (b) Consultancy services estimated to cost above USD 100,000 per contract and all SSS of consultants (firms) will be subject to prior review by the Bank. (c) Shortlists composed entirely of national consultants: Shortlists of consultants for services estimated to cost less than USD 200,000 equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines. 16. The procurement procedures and SBDs to be used for each procurement method, as well as model contracts for works and goods procured, are presented in the project Operations Manual. The methods to be used for the procurement under this project, and the estimated amounts for each method, as well as the threshold contract values for the use of each method, are set in Table 8.B below.
- 78 - Table 8.B: Thresholds by Method and Prior Review
Threshold of Procurement or Contract Subject to Bank Category of Contracts Cost Selection Prior Review Expenditures Estimate Method (‘000 US$) 1. WORKS ≥ 10,000 ICB All contracts > 150& < 10,000 NCB First 2 contracts, then post review ≤ 150 Shopping First contract, then post review (3 quotations) 2. GOODS ≥ 1,000 ICB All contracts > 100& <1,000 NCB First 2 contracts, then post review ≤ 100 Shopping First contract, then post review (3 quotations) ≥ 200 QCBS All contracts >100 &<200 CQS/LCS/FBS All contracts
≤ 100 CQS/LCS/FBS First contract then post review
Firms NA SSS All contracts regardless of value ≥ 50 Consultants Evaluation report comparison Guidelines of CVs, TORs, and draft Section V contracts.
<50 Consultants First contract as above, then Guidelines post review Section V
3.CONSULTANT SERVICES NA SSS All contracts regardless of
Individual Consultants Consultants Individual value
QCBS = Quality- and cost-based selection - LCS = Least cost selection - CQS = Selection based on consultant’s qualifications - FBS = Selection under a fixed budget - SSS = Single-source selection. Short lists may be composed entirely of national consultants for contracts of less than USD 200,000 equivalent per contract
- 79 - Annex 9: Economic and Financial Analysis TUNISIA: 4th Northwest Mountainous & Forested Areas Development Project (PNO4)
1. This annex outlines the hypothesis and results for the financial and economic analysis. The financial analysis aims to demonstrate that income-generating activities (AGRs), both on- farm (cereal production and others) and off-farm (beekeeping, handicrafts, etc.), as proposed under the PNO4, are financially attractive for beneficiaries. The economic analysis also aims to demonstrate that the project in its entirety is economically viable, taking into consideration as much as possible quantifiable/additional costs and benefits of the project. 2. Hypotheses: (i) All calculations are based on monetary data converted in Tunisian Dinars (TD) of 2010 in order to obtain constant price series. (ii) Administrative sectors targeted by the PNO4 are grouped into two categories: new areas (expansion areas) where the Odesypano will intervene for the first time and existing areas (consolidation areas) already covered under the PNO3. Cost-benefit calculations take into account differences in the level of development and disparities between these areas. (iii) Calculations of the benefits for each crop are based on the areas covered by the project based on the number of sown hectares. It is estimated that the number of hectares covered will be at its maximum in 2018 when the 113 PDCs and the totality of CPAs will have been prepared (see Tables 1 and 2 in the appendices). Given the deployment capacity of the Odesypano in these 113 sectors and the difficulty of access in certain areas, particularly in the expansion areas, it is assumed that the totality of areas covered under the PNO4 will represent 60 percent of the total hectares sown by all producers. (iv) Additionally, given that new agricultural techniques/practices can only improve in a progressive manner, it is estimated that the increase in net profit margins is spread over four years i.e. meaning 45 percent for the first year, 65 percent for the second, 75 percent for the third, and 100 percent for the fourth. 3. Economic and financial prices. Concerning the national currency, the official exchange to other currencies is free, and no parallel markets exist. The exchange rate used here for the conversion calculations (TD versus USD) is from February 2010 (1 USD = 1.4 TD). Financial prices for the main agricultural products (cereals including hard and soft wheat, barley, horticulture products, and olive oil) are farmgate prices collected by the Odesypano Regional Directorates. There are no significant distortions in Tunisia on commercial markets for agricultural products. Consequently, financial prices can generally be considered valid proxies for the economic value of products. However, shadow prices have been calculated for speculations such as wheat, barley, olives, and certain fertilizers, for which subsidies are applied. Tunisia is a net importer of wheat and barley, and import parity prices have thus been calculated for these. For olive oil and fertilizers (DAPs, superphosphate 45), for which Tunisia is a net exporter, export parity prices were calculated. The official daily agricultural labor rate in the project areas is 7 TD/day (5 USD/day) on average. Given the significant unemployment rates in these areas, the shadow priced economic value for this labor is estimated at 4.9 TD (USD 3.5), or 70 percent of the official rate. Prices used in the economic and financial analysis are indicated in Table 3 in the appendices. 4. Project costs and benefits. The quantifiable project benefits essentially consist of increases in additional agricultural production in project areas, through the improvement of
- 80 - cropping practices and the introduction of crops with a higher added value. Given the various land uses in different agro-ecological sectors, technical packages will be extended to producers through advisory services, the goal being to maximize the use of cropping patterns and improve producer know-how. Under the PNO4, the main emphases in terms of the advisory services provided are: (i) Decreases in areas under cereal culture in favor of tree crops; (ii) Reductions in areas left fallow; (iii) Increases in areas under olive tree culture in the three regions with an added importance of this crop for the semi-arid and Mogod-Kroumirie regions where agro- climatic conditions are more favorable; (iv) Increases in areas under horticultural crops. These are mainly family subsistence gardens in the foothills and intensified crops in the plains where production is destined for the local market; and (v) Increases in areas under fodder crops and in the introduction of new species (notably leguminous species). The resulting additional production increases per crop and hectare are then converted into benefits by the multiplication of net benefit margins as shown in Table 9.A.
Table 9.A
Additional financial margins for crops per hectare (TD 2010)
Financial Margin
EA CA
Cereals Wheat 76 140 Barley 56 67 Leguminous Broad bean 205 292 Fava bean 80 71 Chickpea 123 292 Lentil 82 292 Fodder 44 41 Olive trees Old 24 46 New 24 46 Horticulture 904 1,010
For each crop per ha, the margin is the difference between the gross production value and all production costs. Agricultural revenues are not taxable and margins are calculated using prices in 2010 TDs. The evolution of economic benefits is illustrated in Table 4 in the appendices.
- 81 - 5. Costs. For the purposes of the economic calculations, project costs (as indicated in Table 5 in the appendices) are based on constant 2010 TDs without taxes, plus physical contingencies, as extracted from the COSTAB tables. The investment costs include all project components, and the replacement costs consist of the repeated renewal (in time and based on their respective lifespan) of means of transport, equipment, and materials (office, computer- based and others) acquired through the project. The recurrent costs are essentially made up of the maintenance of transport means, equipment, and materials. 6. Financial analysis. Benefit margins in terms of productive agricultural activities (see Table 9.A) and off-farm AGRs (see Table 7 in the appendices) are profitable under normal conditions. For example, financial margins for crops in consolidation sectors vary from 41 TD (30 USD) per ha in the case of fodder crops to around 1,000 TD (USD 700) for horticulture crops. This illustrates the advantages to having crop patterns evolve toward higher added value crops. Generally, it is expected that consolidation areas, reinforced by past project experiences, will obtain higher net margins. 7. Economic analysis. Table 6 (in the appendices) and Table 9.B (see below) show the results for the ERR calculation as well as the sensitivity analysis to adverse conditions. The ERR is estimated at 17 percent over 20 years. The sensitivity analysis demonstrates that this rate is slightly more sensitive to benefit shortfalls than to comparable costs overruns.
Table 9.B Sensitivity Analysis ERR Baseline Rate 17% Cost overrun by 15% 15% Cost overrun by 30% 13% Benefit shortfall by 15% 14% Benefit shortfall by 30% 11% This ERR is comparable to that obtained during PNO3 preparation. This is because, even though the Odesypano has improved its intervention capacity in the field, it will cover a greater number of new sectors under the PNO4 (25 compare to 20 under the PNO3), which are often located in areas with more difficult agro-ecological and socio-economic conditions. Additionally, the ERR remains below the rate calculated for the PNO3 ICR, reflecting the conservative hypotheses adopted and the current intention to maintain this cautious approach for the PNO4. Still, the ERR should be considered as a minimum, since it does not take into account benefits much more difficult to quantify and discussed hereafter. 8. Benefits generated through AGRs. Table 7 in the appendices illustrates possible benefits derived from three types of AGRs for project areas: beekeeping, livestock husbandry, and carpet-making. Financial margins vary approximately from 7 TD per workday (5 USD) for the production of 18 m2 of carpet to 33 TD per workday (24 USD) for the operation of 20 full beehives. These results are at least equal, if not superior to the official daily agricultural labor rate in project areas (7 TD/day on average). The benefits are all the more significant in that they essentially consist of part-time activities. Nonetheless, during project implementation, it will be important to refine calculations in order to determine the various break-even points (minimum production volumes and/or price levels, etc.) for each activity. The margins calculated in Table 7 in the appendices are not included in the ERR calculation, as the numbers and dimensions of AGRs are still very uncertain and will essentially depend on the needs and requests made during PDC preparation.
- 82 - 9. Non-quantified and difficult-to-quantify benefits. These benefits are not included in the ERR calculation and concern mainly: (i) Institutional reinforcement of the Odesypano. The PNO4 will enable the Odesypano to improve its deployment capabilities as well as expand and deepen the use of IPA, which has shown highly positive results under the PNO3. (ii) Promotion and reinforcement of partnerships. Partnerships initiated during the PNO3 have been very successful and will be continued and strengthened under the PNO4. These consist mainly of: (a) Partnerships for the execution of certain specific components, involving the OEP, the Office for Handicrafts, Ministry of Employment agencies, research institutions, AFA, professional training centers, and NGOs; (b) Partnerships to extend the scope of application of IPA, involving the DGF, AFA, BTS, NGOs, and ADLs; and (c) Partnerships to anchor IPA in regional and local institutional structures, involving public administrations at the local and regional levels. (iii) Reinforcement of formal beneficiary grassroots organizations (GDAPs), enabling them to be more involved and manage their own local development. (iv) Improvements to rural infrastructure. Investments in rural roads and potable water access will result in improved living conditions for populations. In particular, the rehabilitation and/or construction of rural roads will facilitate access for certain isolated areas, thus stimulating input supply and agricultural product commercialization, mainly in terms of horticulture and tree crops. (v) Increase in employment. A substantial number of temporary and permanent jobs will be created following increases in agricultural production and AGRs, as well as the completion of a number of civil engineering works planned under the PNO4.
Appendices: Appendix 9.I – Table 1. Distribution by crop in sown agricultural area (ha) Appendix 9.II – Table 2. Evolution of project areas (sown areas using new technology) by ha Appendix 9.III – Table 3. Financial and economic prices (2010 TD) Appendix 9.IV – Table 4. Evolution of economic benefits Appendix 9.V – Table 5. PNO4 costs in economic terms Appendix 9.VI – Table 6. Calculation of the ERR Appendix 9.VII – Table 7. Financial profit margins for AGRs
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Appendix 9.I - Table 1 Distribution by crop in sown agricultural area (ha)
(ha) Consolidation areas Expansion areas Before Before Crop PNO4 With PNO4 PNO4 With PNO4
Cereals 90,207 85,517 47,058 42,671 Wheat 63,145 48,633 32,940 27,339 Barley 27,062 36,884 14,117 15,332 Leguminous 11,923 15,402 3,486 4,764 Broad bean 7,873 6,404 2,302 2,608 Fava bean 2,250 4,499 658 1,378 Chickpea 1,125 2,250 329 389 Lentil 675 2,250 197 389 Fodder 52,640 58,401 17,019 21,988 Olive trees 40,267 45,711 11,893 18,564 Old 40,267 40,267 11,893 11,893 New 5,444 6,671 Horticulture 4,724 6,467 820 1,890 Fallow 25,195 13,458 22,247 12,645
Total 224,955 224,955 102,522 102,522
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Appendix 9.II - Table 2
Evolution of project areas (sown areas using new technology) by hectare
CONSOLIDATION AREAS
2018- 2011 2012 2013 2014 2015 2016 2017 2030
Cereals - 1,633 5,248 11,661 21,107 32,302 43,031 52,243 Wheat - 928 2,984 6,632 12,003 18,370 24,471 29,710 Barley - 704 2,263 5,030 9,104 13,932 18,559 22,533 Leguminous - 294 945 2,100 3,801 5,818 7,750 9,409 Broad bean - 122 393 873 1,581 2,419 3,222 3,912 Fava bean - 86 276 614 1,110 1,699 2,264 2,749 Chickpea - 43 138 307 555 850 1,132 1,374 Lentil - 43 138 307 555 850 1,132 1,374 Fodder - 1,115 3,584 7,964 14,415 22,060 29,386 35,678 Olive trees - 873 2,805 6,233 11,282 17,266 23,001 27,925 Old - 769 2,471 5,491 9,939 15,210 20,262 24,599 New - 104 334 742 1,344 2,056 2,739 3,326 Horticulture - 123 397 882 1,596 2,443 3,254 3,951 Fallow - 257 826 1,835 3,322 5,083 6,772 8,221 Total - 4,295 13,804 30,676 55,523 84,972 113,193 137,427
EXPANSION AREAS
2018- 2011 2012 2013 2014 2015 2016 2017 2030
Cereals - 922 3,636 7,783 13,211 19,458 24,937 24,937 Wheat - 591 2,329 4,987 8,464 12,466 15,977 15,977 Barley - 331 1,306 2,797 4,747 6,992 8,960 8,960 Leguminous - 103 406 869 1,475 2,172 2,784 2,784 Broad bean - 56 222 476 807 1,189 1,524 1,524 Fava bean - 30 117 251 426 628 805 805 Chickpea - 8 33 71 121 177 227 227 Lentil - 8 33 71 121 177 227 227 Fodder - 475 1,873 4,011 6,808 10,027 12,850 12,850 Olive trees - 401 1,582 3,386 5,747 8,465 10,849 10,849 Old - 257 1,013 2,169 3,682 5,423 6,950 6,950 New - 144 568 1,217 2,065 3,042 3,899 3,899 Horticulture - 41 161 345 585 862 1,105 1,105 Fallow - 273 1,077 2,306 3,915 5,766 7,389 7,389 Total - 2,214 8,735 18,700 31,741 46,750 59,914 59,914
N.B. Project areas are obtained by applying new technology adoption rates to sown areas per crop. The adoption rate increases from 30% to 75% over four years. The evolution of areas covered by the project reaches a maximum in 2018 when the 113 PDCs and the totality of CPAs will be prepared.
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Appendix 9.III - Table 3 Financial and economic prices (2010 TD)
Products / Inputs Unit Financial Price Conv Rate Economic Price
Products Olives TD/q 70.00 1.06 74.00 Selected hard wheat TD/q 70.00 0.78 54.60 Ordinary hard wheat TD/q 58.00 0.78 44.97 Selected barley TD/q 55.00 0.60 33.00 Ordinary barley TD/q 45.00 0.93 41.63 Broad bean TD/q 110.00 1.00 110.00 Fava bean TD/q 70.00 1.00 70.00 Chickpea TD/q 160.00 1.00 160.00 Lentil TD/q 100.00 1.00 100.00 Potato TD/q 120.00 1.00 120.00 Oat fodder TD/q 16.00 1.00 16.00 Fertilizer TSP 45 TD/kg 0.33 1.39 0.46 DAP TD/kg 0.43 1.48 0.64 Labor Pers/day 7.00 0.70 4.90
Source: Financial prices from the Odesypano. Parity prices calculated for olives, wheat, barley and fertilizers.
- 86 - Appendix 9.IV - Table 4 Evolution of economic benefits (1000 TD) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024-30 CONSOLIDATION AREAS Wheat - 11 42 101 199 332 482 635 724 781 817 817 817 817 Barley - 17 63 151 299 497 722 950 1,084 1,168 1,222 1,222 1,222 1,222 Broad bean - 11 40 96 190 316 459 605 690 744 778 778 778 778 Fava bean - 3 11 25 50 83 121 160 182 196 205 205 205 205 Chickpea - 2 8 20 40 67 97 128 145 157 164 164 164 164 Lentil - 2 6 14 27 44 65 85 97 105 109 109 109 109 Fodder - 20 74 177 350 582 846 1,114 1,271 1,370 1,433 1,433 1,433 1,433 Olive trees Old plantation - 3 12 28 55 91 133 175 199 215 225 225 225 225 New plantation - 257 826 1,835 3,322 3,325 3,333 3,349 55 91 133 175 199 215 Horticulture - 52 192 460 910 1,513 2,198 2,895 3,302 3,559 3,723 3,723 3,723 3,723 Total net margin CA - 379 1,272 2,908 5,441 6,851 8,456 10,096 7,750 8,385 8,809 8,851 8,875 8,891 EXPANSION AREAS Wheat - 19 82 194 364 588 826 964 1,059 1,120 1,120 1,120 1,120 1,120 Barley - 9 41 97 182 294 414 483 530 561 561 561 561 561 Broad bean - 7 31 74 139 225 316 369 405 429 429 429 429 429 Fava bean - 1 3 8 16 25 35 41 45 48 48 48 48 48 Chickpea - 1 3 7 12 20 28 33 36 38 38 38 38 38 Lentil - 0 2 4 8 13 19 22 24 26 26 26 26 26 Fodder - 8 35 82 154 249 350 409 449 475 475 475 475 475 Olive trees Old plantation - 10 45 107 200 324 455 531 583 617 617 617 617 617 New plantation - 257 826 1,835 3,322 3,322 3,322 3,367 434 676 919 1,024 1,067 1,067 Horticulture - 19 85 201 377 610 856 1,000 1,098 1,162 1,162 1,162 1,162 1,162 Total net margin EA - 331 1,153 2,611 4,775 5,671 6,621 7,219 4,665 5,153 5,396 5,501 5,544 5,544
TOTAL Benefits - 710 2,425 5,519 10,216 12,522 15,078 17,314 12,415 13,538 14,204 14,352 14,419 14,434
N.B. The benefits flows are obtained by applying the economic margins to project areas. Given that the adoption of new agricultural and crop technologies will only improve production methods in a progressive manner, it was estimated that the increase of net margins is spread out over four years, meaning 45% for the first year, 65% for the second, 75% for the third, and 100% for the fourth.
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Appendix 9.V - Table 5
PNO4 costs in economic terms
2023- (TD 1000) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 25 2026 2027 2028 2029-30 Investment costs 8,785 13,678 15,953 15,003 10,418 5,224 Recurrent costs 418 418 418 418 418 418 418 418 418 418 418 Replacement costs - 47 39 8 480 420 - 47 39 8 - TOTAL COSTS 8,785 13,678 15,953 15,003 10,418 5,224 418 464 457 425 898 838 418 464 457 425 418
N.B. 1) The four components include respectively 1%, 11.6%, 60.4% and 11% of unskilled manual labor. Given the rural unemployment rate, the investments costs have been calculated using the manual labor shadow price estimated at 70% of the monetary cost.
2) Recurrent costs include essentially the maintenance transport means, equipment and materials.
3) Replacement costs include the renewal of vehicles and computer-based material.
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Appendix VI - Table 6 Calculation of the ERR
2029- 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 30 Total benefits - 710 2,425 5,519 10,216 12,522 15,078 17,314 12,415 13,538 14,204 14,352 14,419 14,448 14,458 14,458 14,458 14,458 14,458 Total costs 8,785 13,678 15,953 15,003 10,418 5,224 418 464 457 425 898 838 418 418 418 464 457 425 418 - - Cash flow -8,785 12,967 13,528 -9,484 -202 7,298 14,660 16,850 11,958 13,113 13,307 13,514 14,001 14,030 14,040 13,994 14,001 14,033 14,040
ERR 17% VNP 15,433
N.B.1) The benefits flows are obtained by applying the economic margins to project areas. Given that the adoption of new agricultural and crop technologies will only improve production methods in a progressive manner, it was estimated that the increase of net margins is spread out over four years, meaning 45% for the first year, 65% for the second, 75% for the third, and 100% for the fourth.
2) Given the unemployment rate in the region, the investments costs have been calculated using the manual labor shadow price estimated at 70% of the monetary cost. 3) For the VPN calculation, the opportunity cost is estimated at 12%.
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Appendix VII - Table 7 Financial profit margins for AGRs
(TD, in model-year) Net annual revenue Revenue by work day Beekeeping 2,950 33 Livestock husbandry 6,460 18 Handicrafts (carpet-making) 1,046 7
N.B. 1) Data relative to AGRs are given by the Odesypano. 2) The budget for a beekeeping project was calculated for an operation of 20 beehives, producing honey and swarms for the local market. 3) The operation budget for livestock husbandry was calculated based on 4 cows for which production (milk and calves) is destined for the local market and for family consumption.
4) The handicrafts project is based on the hypothesis of a production of 18m2 of carpet per year.
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Annex 10: Safeguard Policy Issues TUNISIA: 4th Northwest Mountainous & Forested Areas Development Project (PNO4)
1. Social safeguards. Involuntary physical resettlement of populations and expropriation of land are not expected during implementation of the PNO4. The World Bank Operational Policy 4.12 (Involuntary Resettlement) is triggered to address any potential use of or access to private land. The designated procedures to mobilize land will be voluntary cession and temporary occupation. Accordingly, a RPF has been prepared and shared with relevant parties in a consultative workshop in-country on June 1, 2010. Participants included different staff of directorates of the MARHP, MDIC, and Ministry of Environment and Sustainable Development/Ministère de l’Environnement et du Développement Durable, Central and Regional offices of the Odesypano, forestry directorates, as well the representatives of local development associations. 2. The RPF has been disclosed on the MARHP website (www.onagri.nat.tn) on June 21, 2010, and at the World Bank Infoshop on June 25, 2010. The RPF has also been made available to the public at the central and regional offices of the Odesypano. It will be available also on the Odesypano website when it is set up. 3. The RPF addresses the requirements of OP 4.12 for any potential land acquisition and/or potential loss of economic activities or other assets by affected persons as a result of land acquisition for project activities. 4. A section on the RPF will be included in the Operations Manual and the full document annexed to the Manual. 5. The RPF provides the Tunisian legal framework for land issues, the procedures applied by the Tunisian government for voluntary cession and temporary occupation, terms and conditions for land mobilization for sub-projects, institutional framework for the PNO4, determination of right-holders, consultation and information of the public, the assessment methods for assets and compensation, as well as grievance mechanisms of affected persons, in case of unsatisfactory arrangements. The different steps of RPF implementation are also explained. The RPF also compares the Tunisian legislation to the Bank’s OP 4.12 requirements and defines additional measures needed to reach compliance. 6. The Odesypano has indicated its commitment to implementing and monitoring the RPF. The institutional stakeholders which will be involved in implementing the RPF include: the Ministry of State Domains and Land Affairs/Ministère des Domaines de l’Etat et des Affaires Foncières, the General Directorate for Legal Affairs/Direction Générale des Affaires Juridiques et Foncières of the MARHP, the AFA, and the Odesypano. The RPF details the institutional arrangements of the above-mentioned stakeholders, outlining the roles and responsibilities of each. 7. The Odesypano has designated focal persons in its governorate offices and at headquarters to monitor and report on the implementation of social and environmental safeguards. The focal persons were met during the appraisal mission to discuss their responsibilities, namely monitoring and reporting on the implementation of environmental and social safeguards. The focal persons suggested strongly that adequate training be organized prior to the launch of the project and to pilot the use of the tools, such as the Simplified Diagnostic Environmental Fact Sheets/Fiches Environnementales de Diagnostic Simplifiée (FEDSD) and - 91 - the Environmental and Social Information Sheets/Fiches d’Information Environnementale et Sociale (FIES). 8. The responsibilities of the focal persons include: (i) Monitoring and reporting of the implementation of the framework document for the implementation of environmental and social measures (document cadre pour la mise en œuvre des mesures de protection environnementale et sociale) and the RPF; (ii) Ensuring that environmental and social mitigations and monitoring measures that are identified are respected during the planning and implementation of sub-projects and are included in the tender documents (appel d’offres des contrats) of works and/or equipment purchases; (iii)Ensuring the conformity of environmental and social mitigations measures with the provisions of contracts for works through minutes/formal acknowledgements (PV de reception) of final delivery of works; (iv) Monitoring the preparation of FEDS and FIES (with the support of national consultants); (v) Transmitting the FEDS and FIES to the focal person in charge of monitoring the environmental and social aspects at Odesypano headquarters for review and disclosure on the website of the MARHP; (vi) Preparing, with the support of national consultants, reports for the monitoring and control of environmental and social safeguards aspects; (vii) Ensuring, with the assistance of adequate institutions, the monitoring of the procedures described in the RPF, if there is need to access and/or occupy temporarily private land, namely: a. Determining the eligibility and information of affected people (ayants- droit) b. Consultating and informing the public c. Determining compensation amounts d. Establishing relevant agreements (arrêté d’occupation temporaire et/ou acte d’engagement légalisé de cession volontaire) e. Compensating affected people (ayants-droit) f. Treating complaints and/or conflicts; (viii) Establishing periodic monitoring tables according to the sample tables annexed in the RPF; and (ix) Preparing a status report on the implementation of the RPF for the purposes of the annual status report. This is prepared by the focal person in charge of environmental and social safeguards at Odesypano headquarters. 8. Capacity building and accompanying measures. In order to ensure that the RPF is implemented adequately, the Odesypano will recruit: (i) A resource person (consultant) who will provide support in monitoring and reporting on the implementation of environmental and social safeguards. This person will be recruited for the duration of the project (six years). The person will be based at headquarters and will second the focal person at headquarters.
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(ii) Consultant (s) who will provide four one-day training sessions (twice during the first year and once the following two years) for relevant Odesypano staff at the central level, as well as staff at the regional and local levels including focal persons and animators. Training will focus on: (a) the Tunisian legal framework relating to voluntary cession and temporary occupation, (b) OP 4.12 procedures that will apply to PNO4 land-related issues, and (c) the RPF, as well as monitoring and reporting. 9. Social development aspects. The socio-economic assessment carried out in the context of the PNO4 preparation recapitulated some positive social impacts of the PNO3 and other social aspects which could be improved within the framework of the PNO4. The objective of the PNO3 was to improve the socio-economic conditions of communities in the Northwest mountainous and forest regions, while ensuring sustainable natural resource management. In all, 88 administrative sectors were targeted covering 56,300 households. Under the PNO3, there were improvements in both women’s representation within rural organizations, from 14.7 percent in 2003 to 16.6 percent in 2009 and youth representation, from 6.8 percent in 2003 to 12.7 percent in 2009, with however, a slight regression in the representation of landless people in CDs/GDAPs between 2003 and 2009, decreasing from 22.6 percent to 21.6 percent. In terms of IPA, the socio-economic assessment indicates that female members of GDAPs (on average 2), represented women of the entire community. The assessment also indicated that female participation remains rather limited, even though women in these areas are known to be active. Women who were interviewed indicated that an important disadvantage was the timing of meetings. The assessment also noted that the GDAP partner network remains limited. GDAPs would gain in durability by enhancing their involvement with civil society and other economic and socio-professional operators. 10. Methodological approach of the PNO4. The Odesypano proposes to intervene in 25 new sectors in addition to the 88 existing sectors covered under the PNO3, where it is currently present. Thus, 113 sectors will be targeted over the six years of the PNO4. Under the PNO4, PDCs will be formulated on an administrative sector scale and will be prepared in partnership with the communities who formulate their priorities. Local field advisors and technical experts will support PDC formulation, preparation, and execution, using IPA. Odesypano has indicated that it will continue to systematically improve and simplify, where possible, its methodologies and procedures in the application of IPA, and spread these among partners and communities to achieve greater coherence and effectiveness in its interventions. 11. The methodological tools to be used in PDC preparation and implementation have progressively been adapted throughout the past few years. The first CPA is prepared and budgeted at the time of the PDC preparation, and in addition, four other CPAs are prepared on the basis of a participatory evaluation. Moreover, each PDC, serving as the main guiding plan for CPAs, is evaluated at the completion of the third CPA. The various stages of PDC/CPA preparation and implementation were refined during the PNO3 and constitute: (i) information/advocacy, training/capacity building of community-based organizations, participatory evaluation of the preceding PDC, participatory diagnosis, and needs identification of the community; and (ii) feasibility evaluation of the selected activities, cost estimates, budgeting/ planning of activities, and validation. An innovation under the PNO4 will be that basic investments (e.g. rural roads) could be financed as early as the completion of the first planning session without waiting for PDC approval.
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12. In terms of partnerships, governmental actors, namely the CRs and CLDs as well as the CRDAs, regional directorates of technical ministries, and partnering NGOs (mainly ADLs) will intervene within the PNO4 framework on the basis of partnership protocols. These protocols will define the mechanisms and methods to be used for planning, programming, financing, implementation, and M&E of the various activities agreed upon in PDCs. Each partner will intervene in the areas for which it is entitled and qualified, within its capacities and expertise. The protocols will specify that the partners will provide the Odesypano and CLDs with relevant information for the implementation of their activities. They will be also requested to take part in periodic discussions within the CLDs and CRs on any issues related to project implementation. Local grassroots organizations such as the GDAPs will serve as institutional interfaces between the governorates, the Odesypano, and the communities. Local grassroots organizations will also be the main interlocutors on all issues related to PDC preparation and implementation. More particularly, they will have to: (i) help with the identification of specific community needs; (ii) prioritize community needs; (iii) represent communities and present proposed PDCs at meetings; (iv) ensure a close monitoring of PDC execution; and (v) take part in the evaluation. IPA and the PDCs thus represent two essential elements in the project implementation. Ensuring their institutionalization and ownership within the governorates as well as at the community-based organizations is essential for the project’s sustainability. 13. Beneficiaries. A total of 67,000 households or approximately 318,000 people will benefit from the PNO4. These figures include both existing areas covered under the PNO3 and new areas of expansion under the PNO4. The target population is made up of 50.5 percent women, young people (53.1 percent and 55.1 percent of young women and men, respectively, who are 29 years or younger), and 27.7 percent of landless people. The poverty incidence in these areas is 3.1 percent. The socio-economic assessment noted that socio-economic impacts on various population categories deserve particular attention in order to ensure that the most vulnerable groups (small farmers, young people, landless, and women) benefit equally. The assessment identified and classified communities by target group according to socio-economic and professional criteria. For the PNO4, the Odesypano has chosen a component approach to design and implement its interventions. Four main groups have been identified as beneficiaries of the PNO4: farmers, women, young people, and landless. Table 10.A: Socio-economic Categories (Total of Targeted Persons) Categories Expansion Consolidation Zones Total Zones Farmers and contractors 800 150 950 Stable farmers 11,500 2,100 13,600 Small farmers (vulnerable to job scarcity and seasonal 28,000 5,300 33,300 work) Landless involved in various activities 16,000 3,000 19,000 Rural women working on farms 11,500 2,100 13,600 Unemployed women 42,000 8,000 50,000 Youth 34,500 6,500 41,000 Source: Odesypano In addition to the improved rural infrastructure, the Odesypano will also aim for qualitative impacts such as higher representation and participation of vulnerable groups in decision-making bodies (local community-based organizations such as GDAPs, CLDs, and SMSAs).
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14. Monitoring and evaluation indicators. The PNO4 is a community-based project and therefore, in order to ensure wide community participation and decision-making opportunities, three indicators were originally proposed for the logical framework. However, only the first indicator was maintained: (i) 50 percent of the households adhere to a GDAP (% women, % of the young people, % of landless). (ii) Percent of target groups representation in CDs, GDAP management boards, and SMSAs, with at least 20 percent women, 20 percent young people, and 20 percent landless. (iii) Percent of the budget planned and spent by CPAs in activities (e.g. training, agricultural production support, AGRs, agricultural advisory services, etc.) benefitting target groups: % of women, % of young people, and % of landless. This indicator would have enabled measurement of inclusion of vulnerable groups in project planning and budgeting activities (population of vulnerable groups versus number of activities proposed per target group). 15. Institutional capacity. The implementation of IPA would significantly contribute to community empowerment and sustainability of the development efforts carried out by the Odesypano. This requires: (i) adequate capacity building of staff involved in the preparation, planning, implementation, and follow-up of PDCs; (ii) additional female staff notably among community workers; and (iii) staff with a relevant social/community development background. The recruitment of such personnel, whether on a contractual or permanent basis, with adequate competencies, is necessary to supplement the multidisciplinary teams in charge of PDC preparation. The recruitment of five contractual social specialists to provide technical assistance in PDC preparation has been already budgeted for and should take place within the first year of the project. Four will be at governorate level and one at central level. The Odesypano should also ensure local staff capacity is maintained given the upcoming retirement of six community workers and eight specialists. These six local animators and eight specialists in various sectors should be replaced progressively in the next few years by the MARHP. In terms of training, it has been recommended that issues such as gender, participative local development, project management, and M&E be included in the context of planned capacity building. 16. Other recommendations. Some recommendations have already been discussed during the last PNO3 supervision mission, in particular adopting a more systematic institutional approach for gender. Targeting women as a group with specific socio-cultural and economic needs would require adapting and implementing a gender approach, focused on the economic and social empowerment of women. The PNO3 made efforts to improve the access of women to micro-projects and to involve them in decision-making. It would be useful to continue these efforts through the PNO4. 17. Environmental Safeguards. The Environmental Assessment and Forests OPs are triggered. The project applied the Bank OP 4.00 (Piloting the Use of Borrower Systems to Address Environmental and Social Issues in Bank-supported Projects) for environmental assessment safeguards and forests. This project would have been classified as Category B in accordance with OP 4.01 (Environmental Assessment) if it had been applied to this project. In accordance with OP 4.00, the Bank conducted an SDR to determine the equivalence and acceptability of national systems for environmental impact assessment and forests as well as
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identify any gaps. The SDR was subject to a consultation with stakeholders in Tunisia and disclosed. It includes the Equivalence Analysis, Acceptability Assessment and appropriate gap- filling measures. The gap-filling measures were all included in a Framework Document for Environmental and Social Protection/Document Cadre de Protection Environnementale et Sociale (DCPES) which constitutes an annex to the SDR. 18. The Equivalence Analysis concluded that most of the Tunisian laws and regulations applicable to environmental assessment in the water sector are aligned with the objectives and operational principles listed in OP 4.00, and that gaps can be filled through project-based measures. The principal gap relates to a lack of environmental analysis of sub-projects in agro- forestry as well as in irrigation and agriculture using surface and groundwater. 19. The Acceptability Analysis shows that no environmental assessment or analysis was conducted for agriculture and irrigations projects, or for rural and forestry roads. There are therefore significant gaps between the Tunisian legal environmental system and its application in forestry and irrigations projects. Weaknesses include a lack of quantification of impacts and mitigating measures for all activities, a lack of capacity for regional guidelines of the Odesypano for environmental assessment, and an absence of monitoring and enforcement mechanisms. These gaps can be filled in with the actions that the Government has defined in the DCPES which requires: (i) screening to be conducted on all sub-projects; (ii) preparation and disclosure of a sub-project-specific simplified Environment Management Plans (EMPs) for investments using surface and groundwater and forestry management and for which the magnitude and severity of impacts are significant; and (iii) the establishment of a system to monitor and follow up on the implementation of mitigating measures identified in the sub-project-specific EMPs.
20. Environmental Protection Measures. The Odesypano took the following actions to fill in the equivalence and acceptability gaps before negotiation: (i) the preparation of the DCPES, which includes an environmental screening system consisting of three categories for all sub- projects to be financed under the project, as well as the description of the environmental documentation, consultation, and disclosure pertaining to each of the categories; (ii) the integration of the DCPES into the project implementation manual; (iii) the assignment of staff from the regional directorates of the Odesypano who will oversee the implementation of the DCPES; and (iv) training of staff from the Odesypano in environmental assessment and social safeguards. An amount of USD 207,072 has been allocated in the loan for the gap-filling measures. The appendices include the executive summary of the Equivalence and Acceptability Assessment.
Appendices:
Appendix 10.I – PNO4 Target Groups Appendix 10.II – Executive Summary of the Equivalence and Acceptability Assessment
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Appendix 10.I: PNO4 Target Groups
PNO4 Target Group Identification: Characteristics and Needs N° Designation Characteristics Numbers Needs Cons Ext Total Areas Areas G1 Producers * Large landowners 800 150 950 * Communal works and infrastructure * Commercial and modern agriculture * Agricultural services * Integration into banking systems and the * Agricultural product transformation profession G2 Farmers * Dynamic, receptive and stable category 11,500 2,100 13,600 * Agricultural advisory services * Main PNO3 beneficiaries * Support for commercialization and networks * Focused on GDAPs, reduced * Support for training and equipment vulnerability and dependent on rainfall irrigation systems * Support for AGRs * Facilitation with financial institutions G3 Small * Largest category in number and 28,000 5,300 33,300 * Facilitated access to resources agricultural geographic terms and forestry * Wealthy and predominant in forest * Support for PFNL promotion farmers clearings but numerous and weak elsewhere * Reticent and unstable * Advisory services for goat management * Seeking jobs, not investments * Support for AGRs * Support for agroforestry systems * Support for training and equipment G4 Landless * Category grouping seasonal and 16,000 3,000 19,000 * Skills training people permanent workers, artisans and the needy * Non-technical training (law…) * Job creation G5 Rural Women * Women * Stable, dynamic and receptive 11,500 2,100 13,600 * Support for AGRs working on * Demand for medium term investments * Support for medium-term investments farms * Focused on GDAPs activities * Support for livestock management
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* Jobless/off- * Reticent category 42,000 8,000 50,000 * Support for agricultural product farm employed transformation women * Demand for jobs * Non-technical training (law, household equity, gender status) G6 Young People * Sons of * Seeking jobs 32,000 6,000 38,000 * Support for enterprise creation process and workers entrepreneurial training * Sons of * Future agricultural promoters 2,500 500 3,000 * Support for agricultural services farmers * Young * Support for agricultural product graduates transformation * Support for networks * Non-technical training (law…) G7 GDAPs * Socio-economic operators 52 - 52 * Support for training and equipment * Support for socio-professional expansion * Training in economics and economic operators * Support for planning G8 CDs CDs must represent the above-mentioned 88 25 113 * Workshops with populations groups * Training for CDs * Exchange visits * Logistical support for CDs
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Appendix 10.II: Executive Summary of the Safeguard Diagnostic Review (SDR)
Executive Summary
1. In preparation of the Fourth Mountainous and Forested Areas Development Project (PNO4), the World Bank, in collaboration with the MARHP and the Odesypano, has prepared a Safeguard Diagnostic Review (SDR) in order to conform to Bank Operational Policy 4.00 (Piloting the Use of Borrower Systems to Address Environmental and Social Issues in Bank- supported Projects). This project would have been classified as Category B in accordance with OP 4.01 (Environmental Assessment) if it had been applied to this project. The project aims to improve the socio-economic conditions of the rural population and promote better protection and management of natural resources in the project area using an integrated participatory approach to community-based development. The Environmental Assessment, Forests, and Involuntary Resettlement OPs are triggered. The latter is triggered because of the possibility of land acquisitions under project investments. Only the Environmental Assessment and Forest OPs will be piloted using the Tunisian country system. The Involuntary Resettlement policy will not be dealt with under the country system, but rather in conformity with OP 4.12. 2. Tunisia is one of the first countries to pilot use of country systems, as its environmental regulations, institutional capacity, and performance are relatively advanced, as has already been indicated in the three previous SDRs undertaken by the World Bank21 for the Solid Waste Project (Report #35611-TN), the Second Water Sector Investment Project (PISEAU2, Report #26396-TN), and the Second Community-Based Integrated Rural Development Project (PGRN2, Report #52965-TN). 3. The Equivalence Analysis concluded that most Tunisian laws, regulations, and national instruments framing investments and activities in the natural resources sector relevant to the PNO4 are in conformity with the objectives and operational principles listed in Annex 1 of OP 4.00, concerning Environmental Assessment and Forests. The review of these laws, regulations, and instruments showed a few gaps and differences, which were discussed between the Tunisian counterparts and the World Bank. 22 Both parties agreed that gaps and differences can be filled without needing recourse to modifications to Tunisian laws and regulations. These gaps can be adequately addressed through the adoption and implementation of project-specific legal, institutional and technical instruments to cover the environmental aspects of investments and activities under the PNO4, in line with the good practices identified at the national and international levels. These differences and gaps stem from the fact that the Tunisian environmental framework based on the 2005-1991 Decree: (i) Does not include: (a) The submission of a prior environmental assessment for irrigation projects using conventional waters;
21 See the Diagnostic Report established for the use of country system for Tunisia in the Solid Waste Project, Second Water Sector Investment Project (PISEAU2) and Second Community-Based Integrated Rural Development Project (PGRN2). The results of the above-mentioned reports (www.worldbank.org/tunisie and www.anpe.nat.tn) and of the current report are also largely corroborated by independent comparative studies of the Tunisian system for environmental assessments with other environmental assessment systems in the MENA region and in the World Bank (www.metap.org). 22 These gaps or differences are still mentioned in the Equivalence Analysis as presented in the Annex A table of the SDR. - 99 -
(b) A requirement for dissemination of environmental project documents to stakeholders in order to collect their views and feedback on the project and its impacts; and (c) A public consultation and dissemination of environmental impact assessments. (ii) Does not describe in detail the content of the Environmental Management Plans required for all activities or sub-projects, with regard to monitoring, institutional capacity building, and training for staff and personnel in charge of project management in the water sector, including environmental management. These details will need to be included in the environmental clauses of the specifications for all sub-projects financed by the PNO4. (iii) Does not clarify the implementation conditions for articles 16 and 208 of the 1988 Forestry Code with regard to the management of impacts on forests. 4. An Acceptability Analysis was performed on the capacity of the institutions responsible for PNO4 implementation and generally for the implementation of laws and regulations applicable to environmental assessments in the water, agriculture, and forestry sectors. These include legal mandates, the roles and responsibilities of different agencies, their organizational structures and availability of human and financial resources, decision-making processes, the presence of surveillance and monitoring mechanisms, as well as preparation, application, and monitoring procedures and practices for environmental assessment reports. 5. In general, there are minimum institutional and implementation arrangements consistent with Tunisian administrative and legal requirements as applied to project activities pertaining to irrigation or agriculture. However, environmental requirements are not applied to conventional waters, rural roads or sylvo-pastoral activities. Significant gaps were identified between the legal conditions under the Tunisian environmental assessment system and actual practice, which is reflected in certain weaknesses in the environmental assessment process. These gaps can be filled23 by actions identified by the Government in the Framework Document for Environmental and Social Protection/Document Cadre de Protection Environnementale et Sociale (DCPES) 24 for the PNO4, which were also discussed between the Government (MARHP and Odesypano), with the World Bank, and subsequently disclosed for public consultation. 6. In order to fill the Equivalence gaps during PNO4 implementation and beyond, the Tunisian Government, through the MARHP, has agreed to undertake the following measures: (i) During the preparation mission, the Odesypano submitted the draft DCPES25, which included a classification for investments under the PNO4 into three sub- project classes detailed in the DCPES (annex to the SDR). In conformity with MARHP practice, the sub-projects that are financed by the project and not listed in Annexes I and II of the 1991-2005 Decree will also be subject to an environmental analysis, as described in the DCPES as follows:
23 These gaps mainly pertain to a lack of sufficient details in the identification and quantification of impacts, the specification of mitigation and monitoring measures for all irrigation, rural road, drilling and aquifer recharge projects, as well as a quasi-absence of surveillance and monitoring and lack of rigorous application of works contracts that require environmental protection measures. 24 The DCPES is included in Annex C of the SDR. 25 Annex 4. - 100 -
(a) Class I: All sub-projects pertaining to water connection works, rural roads, and irrigation plots for areas greater than one hundred hectares (100 ha), will be subject to a simplified environmental impact assessment titled Environmental and Social Information Form/Fiche d’Information Environnementale et Sociale (FIES) according to the procedures and modalities described in the DCPES and to impact management measures to be included in the specifications for sub-project operators. The preparation of the simplified assessment and the definition of environmental and social management measures for sub-projects in this class will be published and posted on the MARHP website. Sub-projects pertaining to forest areas, including those relating the collection of non-ligneous and ligneous forest products, under Components 2 and 3, will be conformed with forestry management plans for these areas in accordance with article 16 of the Forestry Code, the content of which will undergo a simplified environmental and social impact assessment. (b) Class II: For all sub-projects with less environmental or social impacts, a simplified review of environmental and social aspects will be in the form of a descriptive Simplified Environmental Diagnostic Form/Fiche Environnementale de Diagnostic Simplifié (FEDS), which will define the environmental and social measures to be included in the contracts for the execution of works. This form will be posted on the MARHP website. (c) Class III: For all projects or sub-projects for which no environmental evaluation is required. (ii) Sub-projects under point (i) above, depending on their classification, will be subject to TORs or specifications, through the FIES or FEDS, which will define the applicable and necessary elements for an environmental management plan in conformity with SDR conclusions and with the DCPES, which is an annex of the SDR. 7. In order to achieve complete coherence within the environmental assessment system and achieve the acceptability measures defined previously and in the DCPES, the Odesypano will implement or supervise the implementation of a series of measures in accordance with the calendar below, which has been endorsed by the Bank: (i) Before the appraisal mission for the PNO4, the Odesypano will: (a) Integrate the DCPES procedures and modalities in the project Operations Manual; (b) Organize the public consultation on the SDR, including the DCPES outlined above as a measure to ensure Equivalence and allow the Odesypano to disseminate the PNO4 environmental procedures to stakeholders, including the five Regional Directorates of the Odesypano involved, the MARHP (DGF, DGFIOP), the CRDAs involved, the National Environmental Protection Agency/Agence National de Protection de l’Environnement (ANPE), and civil society representatives; and
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(c) Decide on the reinforcement modalities for the Odesypano to ensure the implementation and monitoring of the DCPES in its respective regions. These modalities will be defined and described in the DCPES. (ii) Prior to April 11, 2011, the Odesypano will: (a) Update the TORs for environmental assessments for sub-projects that are not subject to a prior environmental impact assessment under the 2005-1991 Decree, but which will be improved in accordance with the environmental assessment procedures defined in the DCPES. These sub-projects pertain to: i. Irrigation, ii. Rural roads, and iii. Sylvo-pastoral activities in forestry areas. (b) Adopt the preparation and implementation modalities and procedures for community forestry projects, including environmental aspects, in accordance with management plans. (iii) Prior to June 30, 2011, the Odesypano will implement an environmental monitoring system aimed at ensuring conformity with works contracts, which will include environmental clauses, to be implemented by the contracting authority, as well as with sub-projects using conventional water. (iv) During PNO4 implementation: (a) The Project Coordination Unit will be responsible for synthesizing the environmental monitoring and surveillance reports received from consultants in order to ensure their conformity to the processes and results described in the DCPES. To this effect, the Odesypano has designated the Head of Infrastructure Services and will recruit a full-time national consultant to: (i) examine received reports; (ii) select a sub-projects sample for audit by a national expert in order to ensure that mitigation measures are monitored; and (iii) prepare a progress report for the execution of environmental and social management activities under the PNO4. This report will be integrated in the annual progress report for the project that the Project Coordination Unit will submit to the World Bank; and (b) During regular supervision missions for the PNO4, World Bank staff will follow the progress of these measures to fill any gaps in Equivalence or Acceptability and will discuss with the Odesypano any measures or necessary actions to ensure conformity with the procedures described in the DCPES, as well as reinforce implementation measures for the national system under the PNO4. 8. Consultation on SDR conclusions and recommendations. A public consultation entitled “Day for Study and Reflection” / « Journée d’Etudes et de Réflexion » was held on June 1, 2010, in order to discuss: (i) the content of the SDR report; (ii) the DCPES; and (iii) the RPF, which is not part of the use of country systems, but which was prepared in order to ensure conformity with Bank OP 4.12 (Involuntary Resettlement).
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Annex 11: Note on PNO4 Interventions in Forested Areas TUNISIA: 4th Northwest Mountainous & Forested Areas Development Project (PNO4)
1. General Context
The Importance of Forestry in the Northwest Region 1. Forests in the Northwest mountainous and forested areas belong to the State and cover around 535,000 ha. Forest areas continue to play a central socio-economic role, in addition to their ecological and environmental role. Indeed, diverse forest vegetation significantly contributes to the protection of watersheds, which contain 75 percent of the country’s water supply and offers a range of products with substantial commercial interest for the national and local economy, such as cork, myrtle, rosemary, essential oils, and mushrooms, in addition to ligneous and pastoral resources. 2. The Forestry code preserves user rights for forest populations, thus allowing them to exploit and freely use certain forest products on a subsistence basis for family members in residence. This user right must not have a commercial or industrial character. Uses are outlined in article 36 of the Forest Code and are regulated by an Order from the Minister of Agriculture dated December 13, 1988.26 Description of Forested Areas in the Northwest Region 3. Total national forested areas cover an area of 971,000 ha, representing 6 percent of the total area of Tunisia (9 percent if desert areas are excluded). These areas are composed of 768,000 ha of forests (400,000 ha of artificial forests and 368,000 or natural forests), 63,000 ha of maquis and garrigue (scrubland) and 140,000 ha of rocky/naked terrain. The largest portion of forested areas are located in the Northwest region (535,000 ha) of which around 20 percent are part of the PNO4 project area. 4. State revenue from the Northwest forested areas reached 11,579 million TD in 2007 (52 percent from cork, 27 percent from wood products, and 11 percent from non-ligneous forest products). Fees from in-forest grazing contributed 2 percent and hunting 7 percent. 27 The number of jobs created from this sub-sector is estimated to be equivalent to 39,500 permanent jobs per year, benefitting forest dwellers. 5. Forests in the Northwest also offer diverse products to forest dwelling populations, which are estimated at one million inhabitants, with a high density of 70-200 inhabitants/km2. The majority of these populations live in difficult conditions, and their revenue sources are limited and unstable. This revenue essentially stems from work in reforestation sites, use and maintenance of forests, as well as extensive livestock management, based on the use of natural grazing areas within forests.
26 User rights include: (i) the collection of dead wood found on the ground; (ii) the taking of secondary essence shrubs without uprooting (with written authorization of the local forestry agent specifying the quantity, location and length of exploitation; (iii) the use of forestry rangelands for feeding of livestock owned by the user right holder; (iv) the picking of mushrooms, wild flowers, and capers, as well as the exploitation of medicinal and condiment plants (without commercialization); and (v) the cultivation of certain plots without tree cover for a user without ownership of any agricultural land. 27 Source: DGF. - 103 -
6. In this context, forested areas ecosystems are constantly facing strong pressures resulting in a growing degradation of forest resources (deforestation for agricultural expansion, over- exploitation of pastoral and sylvo-pastoral resources, illegal cutting of wood for charcoal production and heating, excessive harvesting of forest products and their illegal commercialization). 7. In order to stall this process of degradation, forest sector development policies place a priority on the rehabilitation of tree cover, which should reach 16 percent by 2020 up from 13 percent currently, as well as on socio-economic development and the implementation of sustainable management practices of forest resources. Forestry Planning and Management 8. The management of forested areas is under the responsibility of the DGF under the MARHP. Management is regulated by the Forest Code, which represents the specific legal instrument for forest areas, and by orders of the MARHP. The Forest Code requires in article 1628 a forest area management plan, defining planning, maintenance, and exploitation operations of forestry resources. It also requires that these management plans be prepared and implemented in consultation with forest users. The formulation of these plans is tasked by the DGF to private research offices and should be revised after the end of their 20-year (on average) implementation period. 9. The exploitation and commercialization of forest products is under the responsibility of the Forest Operations Board/Régie d’Exploitation Forestière, created in 1973, under the DGF. The Board is charged with the sale of free-standing timber to private operators, exploitation of cut wood, the harvest and sale of cork, as well as the sale of free-standing non-ligneous forest products. The transport and sale of forest products are also regulated by the Forest Code and by orders of the MARHP, which establishes the list of forest products saleable by public auction. 10. In spite of the progress accomplished to date, forested areas continue to face natural resource degradation challenges and to be affected by unemployment and rural outmigration. An important portion of forest populations remains isolated and lacks sufficient and stable revenue sources. 11. Development experiences in forested areas have showed that the involvement and participation of users in the management of forest resources is still limited despite potential opportunities. This is due in particular to the persistence of certain constraints, outlined below, which impede the implementation of forest area development strategies aiming to reconcile users, forest areas and the implementation of sustainable management practices of forest ecosystems. 12. The organization and participation of forest users have been initiated in the context of several different projects without an adequate perspective on effective involvement in forest resource management. The majority of development groups lack financial and work resources. These groups have not yet benefitted from capacity building enabling them to position themselves as true partners in the setting up of co-management systems for forest resources. The
28 Article 16 of the Forest Code: “With a view to ensuring the durability, periodic reconstitution and improved profitability of forest areas under State control, while taking into account legitimate interests. Users and the ministry in charge of forests will establish for each forest area, excluding areas classified as national parks, natural reserves or creative forests, a technical plan titled “management plan”.” - 104 -
generalization of the status of the GDAPs for the organization of forest users (replacing the status of collective interest forest groups as planned by the Forest Code) has lead to certain ambiguities in the interpretation of rights, roles, and attributions of forest user organizations. 13. Forest areas, despite offering a range of products and uses with multiple benefits to forest populations, have not been sufficiently taken into account by the PDCs formulated in forest areas by diverse development projects. This lack of integration has consequently limited socio- economic development perspectives targeting forest populations as well as the implementation of sustainable management systems for forest resources. This difficulty stems from the fact that certain forest areas lack the management plan required by the Forest Code, or that their management plans are considered expired in reference to their planned implementation period, without being entirely implemented or updated due to a lack of financial resources. 14. Access modalities to forest resources for the exploitation and promotion of forest products of economic interest rest on the sale of exploitation rights for forest products, essentially by annual public auction. This procedure limits access to forest resources for users and in this way does not facilitate their involvement in a participatory and integrated management of these resources. 15. In order to fill these gaps, the DGF is continuously deploying efforts to progress its intervention and legislative approach in order to better integrate the forestry sector in its socio- economic and institutional environment and ensure the involvement of users in the management and preservation of forest resources. Indeed, the formulation and implementation approach for the new forest area management plans continuously take on a more participatory and integrated dimension in an attempt to better associate users in alignment with forestry legislation. 16. The DGF has adopted the 2005-13 law dated January 28, 2005, aiming to encourage private sector operators and user groups to be more effectively involved in forest resource management. Article 75 of the law introduces a concession system for forest areas under State control for a maximum length of 30 years, renewable in five-year increments. These measures will be taken “for public utility, sylvo-pastoral development, the exercising of activities or realization of projects compatible with forests, and for safeguarding the original purpose and durability of forests.” This concession regime paves the way for other operators to invest in forest areas under State control and contribute to their promotion.
2. PNO4 Support for the Development of the Forestry Sector
Partnership Consolidation between the Odesypano and DGF 17. The study of the partnership between the DGF and Odesypano, which was completed in the context of the PNO4 preparation, has consolidated different experiences within the development of the forestry sector as well as enabled the definition of orientations and collaboration opportunities between the two institutions aimed at supporting Government- approved efforts to implement the forestry sector development strategy. 18. During PNO3 implementation, the partnership between the Odesypano and the DGF was initiated through five pilot operations, distributed over five regions (Béja, Bizerte, Jendouba, Le Kef, and Siliana). These operations tested the feasibility of the partnership-based integrated and participatory approach to community development in forested areas. They highlighted the pertinence of the integration of forest areas in PDC formulation, which facilitated community
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participation in a consultative and integrated management of forest resources, taking into account their needs and respects resources preservation measures. 19. Continuing on from these acquired experiences and orientations aiming to durably institutionalize consultation, coordination, and cooperation mechanisms between all partners involved in development and natural resource management, the partnership between the Odesypano and DGF is expected to be expanded and consolidated under the PNO4 in order to contribute to a better integration of the forestry sector in its socio-economic and institutional environment and ensure a sustainable management of forest resources. 20. Among the 113 administrative sectors covered under the PNO4 (604,077 ha), there are 50 sectors which include forested areas that cover 41 percent of those areas. Forested areas are composed of: (i) 18 forest areas (or forest séries) with management plans in effect (42,542 ha); (ii) 10 forest areas with no management plans (12, 759 ha); and (iii) 22 forest areas with out-of- date management plans. The distribution of these 50 sectors and the state of their management plans are detailed in Appendices 1 and 2. 21. The partnership between the Odesypano and DGF under the PNO4 aims to reconcile the efforts and means of both institutions to support socio-economic development in forested areas and sustainable management of forest ecosystems. This partnership will be defined in an agreement framework between the Odesypano and DGF, where areas of collaboration, the role of each institution, intervention coordination mechanisms, and modalities for M&E will all be specified. Reinforcing the practice and approach for partnership-based community development in forest areas 22. Under the PNO4, the Odesypano plans to contribute to the implementation of a development strategy for the forestry sector in project areas with particular attention to plans aiming to better involve forest users and the private sector in the development of the forestry sector and the preservation of forest resources. 23. The practice and approach adopted under the PNO4 includes PDC formulation at the smallest administrative sector level (imada), by systematically integrating forest areas and using forest management plans. This is an evolution from the PNO3. These PDCs will be formulated by involving all stakeholders (the Odesypano, different regional services, local and regional authorities, as well as local grassroots organizations) in the context of an institutionalized partnership. These PDCs will constitute a medium to a long-term planning framework for all development actions, going beyond project duration. 24. Implementing this approach will support development efforts in forested areas and better respond to user needs and expectations, thus facilitating their adhesion to the development process. The approach will contribute to improving management of forest and pastoral ecosystems as well as reinforce the reconciliation of forest populations with their natural environment and the forestry administration. Actions to be Undertaken under the PNO4 25. Actions under the PNO4 in forested areas will focus on the aspects outlined below. Eligible activities for PNO4 financing are those that will be identified in the PDCs, based on the forestry management plans, and contributing to: (i) improvements in revenue sources for populations; and (ii) alleviation of pressures on forest resources and facilitation of user - 106 -
involvement in the preservation of forested areas. A partnership agreement will be established between the Odesypano and the DGF under the PNO4 in order to ensure complementary interventions. Actions will complement DGF interventions, including those planned under the “Integrated Forest Management Project” currently underway (2009-2014), co-financed with Japanese cooperation. This project will cover 26 forest areas also under the PNO4 (see Appendices 1 and 2) and will essentially finance improvement actions for forestry infrastructure (forestry administrative buildings maintenance, construction of lookout posts, firebreaks, modernization of tree nurseries) as well as other planning actions (tree replanting and pastoral plantations, sylvi-cultural operations, etc.) 26. Implementing appropriate management methods for forest resources for which use by forest-dwelling populations is authorized and regulated (cited in article 36 of the Forest Code and regulated by an Order of the Minister of Agriculture dated December 13, 1988): (i) Collecting dead wood found on the ground; (ii) Taking of secondary essence scrubs without uprooting (with the written authorization of the local forest agent specifying the quantity, location, and length of usage); (iii)Use of forest grazing areas to nourish livestock belonging to the user with this right; (iv) Collecting mushrooms, wildflowers, capers, as well as medicinal and condiment plants; and (v) Rehabilitation of vegetation cover in certain parcels not covered by the forest for users who do not own agriculture land, while favoring tree plantations and shrub plantation with multiple uses (fruits, firewood, forage). 27. Support for the transfer of certain management operations for forest resources. The PNO4 will also support, in collaboration with the DGF, the progressive transfer of certain management operations to development groups, thus applying recent measures put forth in law #2005-13 in article 75, which authorizes management through concession in State-owned forested areas, in order to enhance user and private-sector involvement in the management of forest resources. This mainly means: (i) Tree and pastoral plantation operations29; (ii) Rehabilitation and self-management of natural grazing areas; and (iii)Development of agro-forestry systems (tree and shrub plantation with multiple uses, rehabilitation and promotion of medicinal plants, grafting of olive and carob trees in authorized areas in reference to the forest management plans and PDCs). 28. Promotion of income-generating activities. The PNO4 will support the promotion of AGRs focused on the promotion of forest resources such as beekeeping for quality and organic
29 The PNO4 will not finance forest plantation (reforestation) as such, but will bring the necessary support (animation, awareness raising) to facilitate acceptance of such actions as well as their implementation while involving development groups in order to reconcile user rights of populations and the preservation of these plantations (respecting enclosure areas, transfer of maintenance and guardianship). The PNO4 will thus not substitute the DGF to carry out reforestation operations. However, the PNO4 can finance pastoral operations included in PDCs (as demanded by the populations and approved the forestry services), as these types of activities have direct impacts on the improvements to the revenue sources of populations (improvements to livestock management and the rehabilitation of vegetation cover). The project will subsequently support self-management mechanisms for these pastoral areas. - 107 -
honey production and livestock management outside forested areas to alleviate the pressures on these types of grazing areas. 29. Organization of forest users and capacity building. Forest area users located in sectors covered by the PNO4 will be supported in their organization and representation within development groups to be put in place in 50 sectors with forest areas. These groups will benefit from specific support, in addition to capacity building actions planned for all development groups in the 113 sectors covered by the PNO4. 30 The aim is to ensure specific complementary training for their members and technical directors relating to: (i) Legal aspects (rights and duties of forest users, role of grassroots organizations and their responsibility in forest resource management, access to forest resource modalities, new dispositions encouraging management through concession in forest areas under State control, and the transfer of forestry activities to development groups); and (ii) Knowledge on forest potential promotion opportunities, as well as requirements and measures for conservation. These areas of training will be designed based on management plans to be formulated for each forest area at project start (see below). 30. Contribution to forest area management plans. The PNO4 will contribute to financing the preparation of management plans for forested areas31 located in project areas and deemed a priority on a socio-economic and environmental basis. These plans should be formulated during the first two years of the project in order to support the multidisciplinary teams charged with support in PDC formulation as well as a working tool for forestry services. Formulation and Execution of PDCs in Forested Areas 31. The PNO4 will bring the necessary support for the formulation of around 50 PDCs, integrating forested areas located in relevant administrative sectors, based on forest management plans. The project will contribute to their execution in partnership with other actors. These PDCs, to be examined and validated in the context of official consultation frameworks at the local and regional levels, will constitute an integrating framework for development actions and for natural resource management in forest and peri-forest areas. These PDCs will constitute the reference tool for planning, programming, and M&E of development actions at the local and regional level for all partners. 32. The PNO4 will contribute to the financing and execution of socio-economic development and natural resource management actions in forested areas to be identified in PDCs, based on forest management plans. These actions will aim to improve revenue sources and alleviate pressure on forest resources, while encouraging the involvement of users in the conservation of forest areas. Actions will be designed and executed in complement and in coherence with other interventions to be undertaken by other actors.
30 Reinforcement of development groups in terms of competent and well-trained staff (directors to recruit these among young graduates from higher education institutions), practical training for group members and directors, availability of work means (offices, equipment), and close technical assistance to help them formulate and implement action plans. 31 During the meeting on the April 29, 2010, held in Tunis between the Odesypano and the DGF, with participation of the World Bank, if was agreed that: (i) the Odesypano would reserve 0.3 MTD under the PNO4 for the preparation of management plans and; (ii) the DGF will mobilize 0.2 MTD from its 2011-12 budget and will examine the possibility of mobilizing the additional financial management necessary in the context of the “Integrated Forest Management Project” co-financed by Japanese cooperation (ongoing 2009-2014). This project covers 26 forested areas also covered by the PNO4. 31 PDCs will be validated at the regional council level of each governorate and the local council for each delegation. The PDCs will be executed in the context of CPs established between development groups and the CLDs. - 108 -
33. The PNO4 will also support: (i) The progressive transfer of certain management operations (plantation and forest maintenance, rehabilitation of forest resources, and promotion of certain secondary forest products in a manner compatible with their conservation) to development groups. (ii) The establishment of partnership mechanisms between user groups, industry, and the forest administration, especially in the context of the implementation of new directions aimed at putting in place management methods through concessions in forest areas (in relation with product chain promotion). (iii) The capitalization and diffusion of results from experiences acquired under the PNO4. This aspect will need to be taken into account in the communication strategy of the Odesypano, which will be formulated and implemented under the PNO4. This would be very useful in improving the development strategy for the forestry sector in the area of participatory and integrated management of forest resources. This concerns mainly the modalities and procedures for access to forest resources and exploitation and control conditions in partnership with users, as well as socio-economic and environmental impact monitoring. 34. The Odesypano will be supported under the PNO4 by specialized technical assistance in participatory and integrated planning and management of forests accompanied by the field advisor team and will ensure the integration of planning and management of forest resources aspects in PDC formulation in reference to forest management plans. 35. Costs of actions. In addition to financing estimated at 35 MTD (USD 25 million) for the execution of different socio-economic development and natural resource management actions in the 50 administrative sectors located in forest areas, the PNO4 has reserved 2.42 MTD (USD 1.73 million) to contribute to the execution of specific actions in forested areas (described above). The distribution of these actions and their costs are outlined in the appendices.
Appendices 11.I: Information on the Administrative Organization of Forestry Services and Spatial Levels of Intervention 11.II: General Data on Forested Areas Covered under the PNO4 11.III: Distribution of Forestry Séries Covered under the PNO4 with no Plan d’Aménagement 11.IV: Distribution of Forestry Séries Covered under the PNO4 with Outdated Plan d’Aménagement 11.V: Distribution of Forestry Séries Covered under the PNO4 with Ongoing Plan d’Aménagement
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Appendix 11.I: Information on the Administrative Organization of Forestry Services and Spatial Levels of Intervention
Administrative Administrative Level Observations Organization Covered General Directorate for Central Management of the State-owned forestry Forests/Direction Générale areas at the national level in line with the des Forêts (DGF) Forest Code (coordination of the preparation and implementation of management plans/plans d’aménagement and development projects and the management of natural resources in forest areas) Forest Districts/ Governorate Management of forest areas at the regional Arrondissement des forêts level (ensuring the preparation and implementation of management plans/plans d’aménagement and development programs and projects and natural resource management in forest areas) Forest Sub-divisions/ Delegation Management of forest areas at the local Subdivision forestières level (ensuring the implementation of plans d’aménagement and development programs and projects in forest areas) Triage One or many Organization and monitoring of administrative sectors implementation of different forest activities (imadas) on the ground and ensuring the control of usage and practices in forest areas (application of the legislation)
Spatial Levels of Intervention Spatial Units of Intervention Characteristic Massif forestier A forestry unit bounded according to geographic criteria. It is formed by one or more forest series / séries forestières Forest serie/Série forestière It constitutes the base unit for the preparation of a plan d’aménagement, which constitutes the reference legal tool for the management of forest areas. It is bounded according to ecological criteria and covers a very variable area from 500 to 4,000 ha (on average). Each série is divided into many parcels according to homogeneity criteria and types of forest species. Parcels/Parcelles The parcel constitutes the base unit for exploitation and management operations. The size of each parcel varies between 50 and 120 ha on average.
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Appendix 11.II: General Data on Forested Areas Covered under the PNO4
Governorates Béja Bizerte Jendouba Kef Siliana Total I. General Data Number of sectors covered by the PNO4 that include forested areas** 13 6 21 5 5 50 Total surface area of these 50 sectors (ha) 49,341 48,973 93,783 36,353 34,597 263,047 Surface area of forested areas in these sectors (ha) 9,847 24,223 54,084 10,739 9,848 108,741 % of forest areas compare to the total surface area of these sectors 20% 49% 58% 30% 28% 41% Population in the sectors that include forested areas 26,453 29,301 75,394 11,168 14,122 156,438 Population density (hab / km2) 54 60 80 31 41 59 II – Forest Series covered by the PNO4 with a plan d’aménagement Number of sectors that include these forested areas 9 4 19 5 3 40 % compare to the total number of sectors 69% 67% 90% 100% 60% 80% Population in these sectors (number) 19,636 21,921 68,614 11,168 7,386 128,725 Total surface area of these sectors (ha) 32,364 35,282 86,843 36,353 21,898 212,740 Total forest surface area of these sectors (ha) 7,507 21,534 50,679 10,739 5,523 95,982 III - Forest Series covered by the PNO4 with NO plan d’aménagement Number of sectors that include these forested areas 4 2 2 2 10 % compare to the total number of sectors 31% 33% 10% 40% 20% Population in these sectors (number) 6,817 7,380 6,780 6,736 27,713 Total surface area of these sectors (ha) 16,977 13,691 6,940 12,699 50,307 Total forest surface area of these sectors (ha) 2,340 2,689 3,405 4,325 12,759 IV - Forest Series covered by the PNO4 with outdated plan d’aménagement Number of sectors that include these forested areas 2 3 15 2 22 % compare to the total number of sectors 15% 50% 71% 40% 44% Population in these sectors (number) 2,146 18,614 52,512 5,144 78,416 Total surface area of these sectors (ha) 2,643 26,156 64,081 13,456 106,336 Total forest surface area of these sectors (ha) 755 14,882 35,538 2,355 53,530 V - Forest Series covered by the PNO4 with ongoing plan d’aménagement Number of sectors that include these forested areas 7 1 4 5 1 18 % compare to the total number of sectors 54% 17% 19% 100% 20% 36% Population in these sectors (number) 17,490 3,307 16,102 11,168 2,242 50,309 Total surface area of these sectors (ha) 29,721 9,126 22,763 36,353 8,442 106,405 Total forest surface area of these sectors (ha) 6,752 6,652 15,141 10,739 3,168 42,452 % of forest areas compare to the surface area of these sectors **There are 26 forested areas covered by the « Integrated Forest Management Project » co-financed by the Japanese Cooperation ongoing from 2009-2014, of which 10 have ongoing plans d’aménagement, 14 have outdated plans d’aménagement and 2 have no plans d’aménagement.
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Appendix 11.III: Distribution of Forestry Séries Covered under the PNO4 with no Plan d’Aménagement
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Appendix 11.IV: Distribution of Forestry Séries Covered under the PNO4 with Outdated Plan d’Aménagement
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Appendix 11.V: Distribution of Forestry Séries Covered under the PNO4 with Ongoing Plan d’Aménagement
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Annex 12: Project Preparation and Supervision TUNISIA: 4th Northwest Mountainous & Forested Areas Development Project (PNO4)
Planned Actual PCN review 03/03/2010 03/03/2010 Initial PID to PIC 03/19/2010 03/17/2010 Initial ISDS to PIC 03/19/2010 03/25/2010 Appraisal 07/12/2010 07/12/2010 Negotiations 10/18/2010 11/05/2010 Board/RVP approval 11/30/2010 Planned date of effectiveness 01/01/2011 Planned date of mid-term review 01/15/2014 Planned closing date 06/30/2017
Key institutions responsible for preparation of the project: OPDESYPANO, MARHP MARHP (DGFIOP, DGF, CRDAs) Direction Générale de la Coopération Financière Multilatérale, MDCI MIDL, MdF, and Governorate and Delegation administrations
Bank staff and consultants who worked on the project included: Name Title Unit Garry Charlier Task Team Leader MNSAR Jean-Marc Bisson Agricultural Economist FAO Alexandra Sokolova Economist FAO Pierre Werbrouck Rural Enterprise Development Consultant LCSAR Marie-Françoise How Yew Kin Program Assistant MNSSD Viviane Clément Junior Professional Associate MNSSD Abderhamanne Ben Boubaker Institutions Specialist National Consultant Song Li Environmental Consultant MNSEN Slaheddine Ben Halima Procurement Consultant AFTPC Walid Dhouibi Procurement Consultant MNAPR Fatou Fall Social Development Specialist MNSSO Sherif Arif Environmental Safeguard Consultant MNSSD Moez Makhlouf Financial Management Specialist National Consultant Mohammed A. Bekhechi Lead Counsel LEGEN Jean-Charles de Daruvar Senior Counsel LEGEM
Bank funds expended to date on project preparation: 1. Bank resources: 423,415.87 2. Trust funds: 0 3. Total: 423,415.87 Estimated Approval and Supervision costs: 1. Remaining costs to approval: 60,000 2. Estimated annual supervision cost: 80,000
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Annex 13: Documents in the Project File TUNISIA: 4th Northwest Mountainous & Forested Areas Development Project (PNO4)
1. Quatrième Phase du Projet de Développement des Zones Montagneuses et Forestières du Nord-Ouest, Rapport de Préparation, Ministère de l’Agriculture, des Ressources Hydrauliques et de la Pêche, Odesypano, Tunis, Mars 2010
2. Safeguard Diagnostics Review
3. Framework Document for Environmental and Social Protection / Document Cadre de Protection Environnementale et Sociale
4. Resettlement Policy Framework
5. Project Operations Manual
6. Mission Aide-Mémoires
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Annex 14: Statement of Loans and Credits TUNISIA: 4th Northwest Mountainous & Forested Areas Development Project (PNO4)
Difference between expected and actual Original Amount in US$ Millions disbursements Project ID FY Purpose IBRD IDA SF GEF Cancel. Undisb. Orig. Frm. Rev’d P104266 2009 TN-ENERGY EFFICIENCY AND 55.00 0.00 0.00 0.00 0.00 54.86 1.33 0.00 RENEWABLE INV. P095847 2009 TN- WATER SECTOR INVESTMENT II 30.60 0.00 0.00 0.00 0.00 27.18 -1.39 0.00 P095388 2009 TN-Integration and Competitiveness DPL 250.00 0.00 0.00 0.00 0.00 124.38 -125.00 0.00 P099811 2007 TN-Tunis West Sewerage 66.80 0.00 0.00 0.00 0.00 44.54 37.76 0.00 P095012 2007 TN-Sustainable Municipal Solid Waste Mgt 22.00 0.00 0.00 0.00 0.00 7.42 1.64 0.00 P064836 2006 TN-Urban Water Supply 38.03 0.00 0.00 0.00 0.00 25.49 11.09 0.00 P075809 2006 TN Higher Education Reform Support II 76.00 0.00 0.00 0.00 0.00 64.80 52.79 0.00 P088929 2005 TN-ICT Sector Development Project 13.13 0.00 0.00 0.00 3.28 3.76 6.33 0.00 P082999 2004 TN-Education PAQSET II 130.30 0.00 0.00 0.00 0.00 17.90 10.68 -5.45 P071115 2004 TN-Export Development II 42.00 0.00 0.00 0.00 0.18 11.17 0.97 6.62 P074398 2003 TN-Municipal Development III 78.39 0.00 0.00 0.00 0.00 17.67 -0.40 -0.37 P048825 2001 TN-Cultural Heritage 17.00 0.00 0.00 0.00 0.00 7.66 3.17 0.00 Total: 819.25 0.00 0.00 0.00 3.46 406.83 - 1.03 0.80
TUNISIA STATEMENT OF IFC’s Held and Disbursed Portfolio In Millions of US Dollars
Committed Disbursed IFC IFC FY Approval Company Loan Equity Quasi Partic. Loan Equity Quasi Partic. 2004 BIAT 0.00 0.00 52.91 0.00 0.00 0.00 52.91 0.00 1986 SITEX 0.00 0.90 0.00 0.00 0.00 0.90 0.00 0.00 1998 SITEX 0.00 0.32 0.00 0.00 0.00 0.32 0.00 0.00 1998 Tuninvest 0.00 2.54 0.00 0.00 0.00 2.54 0.00 0.00 Total portfolio: 0.00 3.76 52.91 0.00 0.00 3.76 52.91 0.00
Approvals Pending Commitment FY Approval Company Loan Equity Quasi Partic.
Total pending commitment: 0.00 0.00 0.00 0.00
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Annex 15: Country at a Glance TUNISIA: 4th Northwest Mountainous & Forested Areas Development Project (PNO4)
Tunisia at a glance 12/9/09
M . East Lower- POVERTY and SOCIAL & North middle- Development diamond* Tunisia Africa income 2008 Population, mid-year (millions) 10.3 325 3,702 Life expectancy GNI per capita (Atlas method, US$) 3,480 3,242 2,078 GNI (Atlas method, US$ billions) 36.0 1,053 7,692
Average annual growth, 2002-08 Population (%) 0.9 1.9 1.2 Labor force (%) 1. 9 3 . 0 1. 6 GNI Gross per primary M ost recent estimate (latest year available, 2002-08) capita enrollment Poverty (% of population below national poverty line) ...... Urban population (% of total population) 65 57 41 Life expectancy at birth (years) 75 70 68 Infant mo rtality (per 1,000 live births) 18 32 46 Child malnutrition (% of children under 5) 3..26 Access to improved water source Access to an improved water source (% of population) 94 88 86 Literacy (% of population age 15+) 78 73 83 Gross primary enrollment (% of school-age population) 10 8 10 6 10 9 Tunisia M a l e 10 9 10 9 112 Lower-middle-income group F e m a l e 10 6 10 4 10 6
KEY ECONOMIC RATIOS and LONG-TERM TRENDS 1988 1998 2007 2008 Economic ratios* GDP (US$ billions) 10.1 19.8 35.0 40.3 Gross capital formation/GDP 20.7 26.9 24.8 27.0 Exports of goods and services/GDP 42.0 43.0 54.1 61.0 Trade Gross domestic savings/GDP 21.1 23.6 22.4 22.7 Gross national savings/GDP 21.7 23.6 22.6 22.5
Current account balance/GDP 1.0 -3.4 -2.6 -4.2 Interest payments/GDP 4.0 2.8 2.6 2.4 Domestic Capital savings formation Total debt/GDP 67.3 54.7 58.4 51.5 Total debt service/exports 21.9 15.3 11.3 7.7 Present value of debt/GDP .. .. 56.2 47.4 Present value of debt/exports .. .. 89.2 69.7 Indebtedness 1988-98 1998-08 2007 2008 2008-12 (average annual growth) GDP 4.6 4.8 6.3 4.5 4.0 Tunisia GDP per capita 2.8 3.8 5.3 3.5 3.0 Lower-middle-income group Exports of goods and services 4.8 4.4 8.5 3.5 1.8
STRUCTURE of the ECONOMY 1988 1998 2007 2008 Growth of capital and GDP (%) (% of GDP) 20 Agriculture 11.8 12.7 10.3 9.9 15 Industry 30.6 28.4 29.6 32.6 10 5 M anufacturing 16.8 18.5 17.2 17.9 0 -5 Services 57.6 58.9 60.0 57.5 -10 03 04 05 06 07 08 -15 Household final consumption expenditure 62.3 60.8 63.2 62.8 General gov't final consumption expenditure 16.6 15.6 14.4 14.6 GCF GDP Imports of goods and services 41.7 46.4 56.5 65.3
1988-98 1998-08 2007 2008 Growth of exports and imports (%) (average annual growth) A griculture 4.4 2.3 2.1 0.5 9 6 Industry 4.7 -0.7 7.2 -59.9 3 0 M anufacturing 3.5 -15.8 6.4 -98.9 -3 Services 4.7 7.0 6.7 33.7 -6 03 04 05 06 07 08
Household final consumption expenditure 4.0 5.2 5.0 6.8 General gov't final consumption expenditure 4.0 4.4 4.1 4.6 Gross capital formation 5.4 2.7 7.1 7.3 Exports Imports Imports of goods and services 4.1 3.7 6.1 8.3
Note: 2008 data are preliminary estimates. This table was produced from the Development Economics LDB database. * The diamonds show four key indicators in the country (in bold) compared with its income-group average. If data are missing, the diamond will be incomplete. - 118 -
Tunisia
PRICES and GOVERNMENT FINANCE 1988 1998 2007 2008 Inflation (%) Domestic prices (% change) 8 Consumer prices 7.3 3.2 3.1 5.0 6 Implicit GDP deflator 7.7 3.0 2.4 5.9 4 Government finance 2 (% of GDP, includes current grants) 0 Current revenue 28.3 24.7 24.3 26.9 03 04 05 06 07 08 Current budget balance 4.9 3.5 3.9 5.7 GDP deflator CPI Overall surplus/deficit 0.0 -3.2 -2.8 -0.8
TRADE 1988 1998 2007 2008 Export and import levels (US$ mill.) (US$ millions)
Total exports (fob) 2,396 5,725 15,147 19,184 25,000 Fuel 386 367 2,449 3,311 Agriculture 299 551 1,469 1,750 20,000 M anufactures 1,179 4,033 10,177 11,565 15,000 Total imports (cif) 3,692 8,334 19,071 24,544 10,000 Food 554 705 1,594 2,111 Fuel and energy 243 396 2,342 3,988 5,000 Capital goods 618 1,918 4,053 4,694 0 Export price index (2000=100) 48 87 182 .. 02 03 04 05 06 07 08 Import price index (2000=100) 73 121 182 .. Exports Imports Terms of trade (2000=100) 66 72 100 ..
BALANCE of PAYMENTS 1988 1998 2007 2008 Current account balance to GDP (%) (US$ millions) Exports of goods and services 4,242 8,481 20,056 25,198 0 Imports of goods and services 4,206 9,131 20,826 26,565 02 03 04 05 06 07 08 -1 Resource balance 36 -650 -769 -1,367 -2 Net income -498 -856 -2,028 -2,509 Net current transfers 558 831 1,880 2,164 -3
Current account balance 96 -675 -917 -1,712 -4
Financing items (net) 282 482 1,640 3,278 -5 Changes in net reserves -378 193 -723 -1,566
Memo: Reserves including gold (US$ millions) 908 1,861 7,863 8,946 Conversion rate (DEC, local/US$) 0.9 1.1 1.3 1.2
EXTERNAL DEBT and RESOURCE FLOWS 1988 1998 2007 2008 Composition of 2008 debt (US$ mill.) (US$ millions) Total debt outstanding and disbursed 6,799 10,845 20,445 20,776 IBRD 1,019 1,458 1,571 1,353 A: 1,353 IDA 62 43 24 22 G: 4,327 B: 22 Total debt service 1,058 1,431 2,496 2,117 IBRD 199 268 236 347 D: 4,545 IDA 2 2 2 2
Composition of net resource flows Official grants 124 65 169 118 Official creditors 208 -152 9 -115 Private creditors 37 -20 37 29 E: 3,282 Foreign direct investment (net inflows) 61 650 1,532 2,638 F: 7,247 Portfolio equity (net inflows) 9 58 30 -39
World Bank program Commitments 241 222 34 0 Disbursements 173 142 161 70 A - IBRD E - Bilateral Principal repayments 112 180 172 275 B - IDA D - Other multilateral F - Private C - IMF G - Short-term Net flows 61 -39 -10 -205 Interest payments 89 91 67 74 Net transfers -28 -129 -77 -280
Note: This table was produced from the Development Economics LDB database. 12/9/09
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IBRD 38030
8°30’ 9°00’ 9°30’ 10°00’
TUNISIA BizerteBizerte FOURTH NORTHWEST ElEl MouedenMoueden MOUNTAINOUS AND Mediterranean Sea ElEl AbabssaAbabssa SidiSidi MechregMechreg FORESTED AREAS ElEl ArabArab HchachnaHchachna OuledOuled ElEl MMayay McherguaMchergua DEVELOPMENT PROJECT ShabnaShabna SejneneSejnene (PN04) ElEl MaaliaMaalia SejneneSejnene
37°00’ BIZERTEB I Z E R T E 37°00’ NefzaNefza TouajniaTouajnia BouzennaBouzenna OuledOuled GhanemGhanem TabarkaTabarka NefzaNefza EstEst EXPANSION AREAS/ZONES D’EXTENSION BazinaBazina JmilaJmila GhayadhaGhayadha PREVIOUSLY COVERED AREAS ZaghaZagha FatnassaFatnassa ChuenaChuena JoumineJoumine NadhourNadhour RIVERS ElEl TbabaTbaba RouahaRouaha TahentTahent HammamHammam O.O. ElEl TahentTahent SEASONAL RIVERS ElEl HamraHamra MaadenMaaden AïnAïn SnoussiSnoussi CITIES AND TOWNS JouzaJouza ARIANAA R I A N A ArianaAriana OuedOued ElEl FreijiaFreijia ElEl MjelessMjeless GOVERNORATE CAPITALS EzzenEzzen GhoziaGhozia BéniBéni O. Medjerda NATIONAL CAPITAL AinAin DrahamDraham MalekMalek KhmeiriaKhmeiria ElEl HomranHomran RouaiRouai SECTOR BOUNDARIES AmdounAmdoun SSudud BEJAB E J A ElEl KsarKsar TUNISTUNIS TegmaTegma AïnAïn SellamSellam HidousHidous ElEl SloulSloul SUBGOVERNORATE BOUNDARIES AdherAdher TUNISTUNIS ALGERIAALGERIA JouaoudaJouaouda BejaBeja CheouechCheouech GOVERNORATE BOUNDARIES HedhilHedhil BenBen OuledOuled JENDOUBAJ E N D O U B A GloubeGloube M’kachbiaM’kachbia ToukaberToukaber ArousArous INTERNATIONAL BOUNDARIES MfeddaMfedda GloubeGloube ThireneThirene ThireneThirene SidiSidi HlimaHlima SudSud NordNord OuedOued AmmarAmmar MejezMejez elel BBabab BENB E N ElEl MaâdenMaâden BouBou SalemSalem GhribGhrib RbiaRbia MestoutaMestouta MzoughaMzougha AROUSA R O U S ForkseneForksene KhechebKhecheb SidiSidi SmailSmail GuemertiGuemerti AïnAïn ZeldouZeldou 0 10203040 BirBir TestourTestour SoltaneSoltane OuechtataOuechtata ToutaTouta KILOMETERS JendoubaJendouba GremeGreme 36°30’ AinAin ChikhChikh DjebbaDjebba MellitiMelliti 36°30’ SrayaSraya OuedieneOuediene KhniguetKhniguet This map was produced by the Map Design Unit of The World Bank. AïnAïn DfaliDfali BirBir EchEch The boundaries, colors, denominations and any other information HammamHammam EdhaneEdhane shown on this map do not imply, on the part of The World Bank RihanaRihana Group, any judgment on the legal status of any territory, or any BiadhaBiadha NNordord endorsement or acceptance of such boundaries. FejFej HecineHecine AïnAïn ElEl ElEl AdhiabAdhiab HammamHammam OueljetOueljet ChtetlaChtetla HammamHammam CedraCedra TelTel BiadhaBiadha SSudud GhozléneGhozléne MellalaMellala DoukhaniaDoukhania ZaghouanZaghouan Mellegue BorjBorj SPAIN ITALY TouirefTouiref O. MessoudiMessoudi KribKrib NordNord Mediterranean GREECE SidiSidi BorjBorj OuestOuest JradouJradou NebeurNebeur MedieneMediene MessoudiMessoudi TUNISTUNIS BahraBahra EstEst Project AbassiAbassi Area MALTA OuedOued SILIANAS I L I A N A OuedOued Miliane OuedOued SouaniSouani ZAGHOUANZ A G H O U A N TUNISIA FerchenFerchen RmelRmel DirDir ElEl KefKef NordNord O. Sea NordNord SouaniSouani ElEl KefKef SudSud AïnAïn AïnAïn ElEl AchourAchour OuedOued RRmalmal SSudud ZaafraneZaafrane KarmaKarma SersSers NordNord EtrichaEtricha LorbeusLorbeus SidiSidi RabehRabeh JemaJema JouaJoua ALGERIA ELE L KEFK E F SilianaSiliana BousliaaBousliaa MassoujMassouj LIBYA 36°00’ 36°00’ ElEl KhalsaKhalsa AinAin EdissaEdissa KAIROUANK A I R O U A N 8°30’ 9°00’ 9°30’ 10°00’ NIGER SEPTEMBER 2010