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Rural Development Project Project Administration Memorandum Project Number: 3753001 Loan Number: 2313 December 2007 TAJ: Rural Development Project The project administration memorandum is an active document, progressively updated and revised as necessary, particularly following any changes in project or program costs, scope, or implementation arrangements. This document, however, may not reflect the latest project or program changes. ASIAN DEVELOPMENT BANK PROJECT ADMINISTRATION MEMORANDUM LOAN NO. 2313-TAJ(SF) AND GRANT NO. 00072-TAJ RURAL DEVELOPMENT PROJECT AGRICULTURE, ENVIRONMENT, AND NATURAL RESOURCES DIVISION CENTRAL AND WEST ASIA DEPARTMENT John Whittle Principal Agricultural Economist Telephone No.: (632) 632-6966 Fax No.: (632) 636-2301 E-mail: [email protected] Marissa Arcayan Assistant Project Analyst Telephone No.: (632) 632-6497 Fax No.: (632) 636-2301 E-mail: [email protected] December 2007 CURRENCY EQUIVALENTS (as of 6 December 2006) Currency Unit – somoni (TJS) TJS1.00 = $0.295 $1.00 = TJS3.384 ABBREVIATIONS ADB – Asian Development Bank ADF – Asian Development Fund CACILM – Central Asian Countries Initiative for Land Management CBO – community-based organization CIDA – Canadian International Development Agency EA – executing agency EIRR – economic internal rate of return EMP - environmental management plan GDP – gross domestic product GEF – Global Environment Facility ha – hectare IEE – initial environmental examination MFI – microfinance institution MIU – market information unit MOA – Ministry of Agriculture MOF – Ministry of Finance NBT – National Bank of Tajikistan NCB – national competitive bidding NGO – nongovernment organization O&M – operation and maintenance PMU – project management unit PSC – project steering committee SCLM – State Committee for Land Management SDC – Swiss Agency for Development and Cooperation TA – technical assistance UNDP – United Nations Development Programme USAID – United States Agency for International Development GLOSSARY dekhan – farmer (literally, “peasant”) dekhan farm – private or cooperative farm collective dekhan farm – renamed collective or state farm jamoat – administrative unit below raion, comprising a group of villages; also the lowest level of local government administration oblast – province raion – district NOTES (i) The fiscal year (FY) of the Government and its agencies ends on 31 December. (ii) In this report, “$” refers to US dollars. CONTENTS Page INTRODUCTION………………………………………………………………………………….. i LOAN PROCESSING HISTORY………………………………………………………………... ii LOAN AND PROJECT SUMMARY………………………………………………………………. iii MAP………………………………………………………………………………………………….viii DESIGN AND MONITORING FRAMEWORK…………………………………………………...ix I. PROJECT DESCRIPTION……………………………………………………….. 1 A. Project Area and Location B. Impact and Outcome C. Outputs D. Special Features Appendices: I-A Detailed Description of Project Components………………….9 II. COST ESTIMATES AND FINANCING PLAN…………………………………11 A. Project Implementation Plan B. Financing Plan III. IMPLEMENTATION ARRANGEMENTS……………………………………….17 A. Project Management IV. IMPLEMENTATION SCHEDULE……………………………………………….19 V. CONSULTANT RECRUITMENT………………………………………………..22 VI. MAJOR LOAN COVENANTS…………………………………………………...28 VII IMPLEMENTATION OF THE ACCOMPANYING TA…………………………49 VIII. KEY PERSONS INVOLVED IN THE PROJECT………………………………53 IX. ANTICORRUPTION………………………………………………………………54 X. OTHERS……………………………………………………………………………55 i INTRODUCTION 1. This Project Administration Memorandum (PAM) contains project data and information that allows the Borrower, Executing Agency (EA), Implementing Agency (IA), and the Asian Development Bank (ADB) to monitor project implementation and evaluate project impact. This should be read along with the Report and Recommendation of the President (RRP) and the Financing Agreement. The PAM is aimed to: (i) provide concise and accurate detail, including maps and diagrams, on major aspects of project implementation; (ii) specify roles and responsibilities of the EA, IA, consultants, and ADB for the various actions required for satisfactory project implementation; (iii) assist project administration staff of the EA, IA, and ADB to anticipate problems and initiate timely remedial actions or recommendations; (iv) contain a logical framework, including subsequent revisions that confirm the goal, purpose, outputs, activities, inputs, targets, indicators, key assumptions, and risks; (v) provide a framework and checklist for monitoring progress to allow remedial actions and midstream modifications to meet project objectives; (vi) promote systematic monitoring and evaluation of project objectives and assessment of impacts on project beneficiaries through surveys, studies, and periodic and midterm reviews; (vii) provide the format and instructions for the EA and IA to periodically update the project performance report in its current revised format; and (viii) reference ADB’s Anticorruption Policy, indicating how ADB may be contacted about allegations of corruption and fraud. 2. To ensure its usefulness, the PAM should be an active document, progressively updated, and revised as and when necessary, particularly during midterm review and following any changes in project costs, scope, or implementation arrangements. Changes made to PAM should be added to the PAM as an addendum, rather than replacing the earlier portion. This will help in reconciling historical records and in preparing the future project completion report. 3. In case of discrepancies between the PAM, RRP, and the Financing Agreement, the Financing Agreement always prevails. Note: Borrower in this PAM refers to the Republic of Tajikistan and/or the Executing Agency. ii LOAN PROCESSING HISTORY • Approval of project preparatory 29 January 2007 technical assistance • Project Preparatory Technical Assistance No. 4917-TAJ • Fact-finding 10 July – 3 August 2006 • Management Review Meeting 11 September 2006 • Appraisal Mission 1 – 18 October 2006 • Staff Review Committee 2 November 2006 • Loan Negotiations 16 November 2006 • Board circulation 21 December 2006 • Board consideration and approval 29 January 2007 • Financing agreement signing 16 April 2007 • Cofinancing arrangement finalized and agreements signed In progress • Loan effectiveness 14 September 2007 iii LOAN AND PROJECT SUMMARY Borrower Republic of Tajikistan Classification Targeting classification: General intervention Sector: Agriculture and natural resources Subsector: Agriculture production, agro-processing, and agribusiness Themes: Sustainable economic growth, environmental sustainability, and gender and development Subthemes: Developing rural areas, natural resources conservation, and gender equity in opportunities Project Description The Project takes a holistic and coordinated approach to rural development to address problems and constraints, enhance opportunities, and integrate agriculture more effectively into the rural economy. The Project will focus on five contiguous raions (districts)—Faizabad, Rogun, Rudaki, Vahdat, and Varzob— located around the capital, Dushanbe. The Project will (i) address land use security; (ii) develop policies and strategy for more effective pasture land management and capacity development; (iii) improve the administration and institutional aspects of business development; (iv) address the capacity and technical aspects of degradation of arable, pasture, and forest lands; (v) establish independent agriculture and rural business advisory services; (vi) establish an effective market information system; (vii) provide microcredit; and (viii) improve rural infrastructure in communities and raions. Rationale While agriculture is contributing to the economy, it is underperforming and therefore not contributing significantly to rural development and overall poverty reduction in rural areas. As farmers emerge from a primarily subsistence-based agriculture, in the transition to a market-oriented economy, agriculture still has a fundamental role in fostering rural economic growth and in diversifying and developing the rural non-farm economy. Inclusive rural development requires high overall economic growth; effective land reform; adequate support services; the development of economic and social infrastructure; efficient and effective institutions; access to rural financial services; a dynamic agriculture sector, including attention to new technology, research, and the conservation of natural resources; and the development of rural non-farm enterprises. At present, the key constraints to rural development in Tajikistan are: the limited freedom to farm and conduct business; the limited availability of support services; poor infrastructure; severe land degradation; and weak institutions. Such weaknesses need to be addressed, not independently of one another, but in an integrated, iv coordinated, and sustainable manner. In addition, there are persistent gender-based discriminatory practices, which affect women’s equal access to resources, services, and opportunities. The Project will address all aspects of agriculture, from land use security, input supply, agro-processing, and marketing to enterprise and capacity development, to bring farmers out of subsistence production to commercial farming, and develop related farm and non-farm enterprises. It will do all this with a gender and development focus and within an environmentally sustainable management framework. The proposed area-focused approach will enable the Asian Development Bank (ADB) and other development partners to strengthen and coordinate the development activities in the five raions to
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