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Uganda Project for the Restoration of Livelihoods in the Northern Region (PRELNOR) Mid-Term Review Report : - Mission Dates: 5Th – 24Th May, 2019

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Uganda Project for the Restoration of Livelihoods in the Northern Region (PRELNOR) Mid-Term Review Report : - Mission Dates: 5Th – 24Th May, 2019 Uganda Project for the Restoration of Livelihoods in the Northern Region Mid-term Review Main report and appendices Mission Dates: 05-24 May 2019 Document Date 05/07/2019 Project No. 1100001681 Report No. 5073-UG East and Southern Africa Division Programme Management Department Abbreviations and Acronyms Abbreviations and acronyms 2WT 2-Wheel Tractor 4WT 4-Wheel Tractor AEATREC Agricultural Engineering and Appropriate Technology Research Centre AEF Agricultural Extension Facilitator AEO Agricultural Extension Officer AWPB Annual Workplan and Budget AWS Automatic Weather Stations BBS Online Banking System CAN Capacity Needs Assessment CAO Chief Administrative Officer CAR Community Access Road CBNRM Community-Based Natural Resources Management CSA Climate-Smart Agriculture DFA District Farmers' Associations DLG District Local Governments, DNRO District Natural Resources Officer FBS Farmer Business Schools FFS Farmer Field School GALS Gender Action Learning Strategy GoU Government of Uganda HH Household ICRAF World Agro-Forestry Centre IFMS Integrated Financial Management System ISSD Integrated Seed Sector Development MEMD Ministry of Energy and Mineral Development MFPED Ministry of Finance, Planning and Economic Development MoLG Ministry of Local Government MSP Market Stakeholder Platform NRM Natural Resources Management PDU Procurement and Disposal Unit PHH Post-Harvest Handling PIM Project Implementation Manual PMU Project Management Unit PPDA Public Procurement and Disposal Authority/Act PRA Participatory Rural Appraisal PRELNOR Project for the Restoration of Livelihoods in the Northern Region RET Renewable Energy Technology UGX Uganda Shillings UNFFE Uganda National Farmers Federation UNMA Uganda National Meteorological Authority ZARDI Zonal Agricultural Research and Development Institute 1/38 A. Project Overview Region: East and Southern Africa Division Project at Risk Status: Not at risk Country: Uganda Environmental and Social B Project for the Restoration of Livelihoods Category: Project Name: in the Northern Region Climate Risk Classification: not available yet Project Id: 1100001681 Ministry of Local Executing Institution: Project Type: Marketing/Storage/Processing Government Ministry of Local CPM: Lakshmi Moola Implementing Institutions: Government Project Director: not available yet Project Area: Acholi Sub-region plus Adjumani District Approval Date: 16/12/2014 Last audit receipt: 08/02/2019 Signing Date: 05/08/2015 Date of Last SIS mission: 24/05/2019 Entry into Force Date: 05/08/2015 Number of SIS Missions: 9 Available for Disbursement Date: 12/01/2016 Number of extensions: 0 First Disbursement Date: 15/01/2016 Effectiveness lag: 8 months MTR Date: 05/05/2019 Original Completion Date: 30/09/2022 Current Completion Date: 30/09/2022 Financial Closure: not available yet Project total financing IFAD Financing breakdown IFAD $50,200,000 ASAP Trust Fund $10,000,000 Domestic Financing breakdown Beneficiaries $1,494,000 National Government $9,290,000 Co-financing breakdown, Project total financing: $70,984,000 Current Mission Mission Dates: 05-24 May 2019 Days in the field: 13 days Mission composition: Ms. Lakshmi Moola, (Country Programme Manager); Mr. Pontian Muhwezi, (IFAD Country Programme Officer); Ms Maliha Hamid Hussein (Team Leader); Mr. Rami Salman (Co-Mission Leader and Environmental Specialist); Mr David Radcliffe (ASAP Consultant-DFID); Mr. Mawira Chitima (Infrastructure Specialist); Mr. Robert Delve, (IFAD's Senior Agronomist); Ms Lorina Sthapit (M&E & Gender); Mr. Mohamed Abdel-Latif (Procurement Specialist); Mr Davis Autogonza (Financial Management Specialist) and Mr Baraka Bensolomon (Commodity Logistics Analysis courtesy of Kuhne Foundation) and Kevin Codrey (University of Cape Town). A representative from the MoFPED Ms. Molly Apio-IFAD Desk Officer joined the mission for the field visits. Field sites visited: Adjumani, Kitgum, Agago and Omoro Districts 2/38 B. Overall Assessment Key SIS Indicator #1 ∅ Rating Key SIS Indicator #2 ∅ Rating Likelihood of Achieving the Development 4 Assessment of the Overall Implementation 4 Objective Performance Effectiveness and Developmental Focus 4 Project Management 4 Effectiveness 3 Quality of Project Management 4 Targeting and Outreach 5 Knowledge Management 4 Gender equality & women's participation 5 Value for Money 3 Agricultural Productivity 4 Coherence between AWPB and 3 Implementation Nutrition 4 Performance of M&E System 4 Adaptation to Climate Change 5 Requirements of Social, Environmental and 3 Climate Assessment Procedures (SECAP) Sustainability and Scaling-up 4 Financial Management and Execution 4 Institutions and Policy Engagement N/A Acceptable Disbursement Rate 4 Partnership-building 4 Quality of Financial Management 4 Human and Social Capital and 5 Quality and Timeliness of Audit 5 Empowerment Counterparts Funds 5 Quality of Beneficiary Participation 4 Compliance with Loan Covenants 5 Responsiveness of Service Providers 5 Procurement 3 Environment and Natural Resource 4 Management Exit Strategy 4 Potential for Scaling-up 4 Relevance 5 3/38 C. Mission Objectives and Key Conclusions Background and Main Objective of the Mission The Project for the Restoration of Livelihoods in Northern Uganda (PRELNOR) came into force on 5 August 2015. It's implemented by Ministry of Local Government (MoLG) over a seven year period, for a total cost of USD 70.9 million, financed as follows: an IFAD loan of USD 50.2 million; a grant from the Adaptation for Smallholder Agriculture Programme (ASAP) of USD 10 million, and USD 9.2 million by Government of Uganda (GoU) and USD 1.5 million by the beneficiaries. The project development objective is: Increased sustainable production, productivity and climate resilience of small holder farmers with increased and profitable access to domestic and export markets. The project area covers nine districts in Northern Uganda, i.e. Adjumani, Agago, Amuru, Gulu, Kitgum, Lamwo, Nwoya, Omoro and Pader. The project is now in its second year of full implementation with all implementation agencies already brought on board. An IFAD supervision mission has been held from 3 to 14 December 2018. The overall objective of the mission was to review the implementation progress of the project and provide the necessary implementation support to the Project Management Unit (PMU). The mission worked with the PMU team in Gulu and conducted field visits to Adjumani, Kitgum, Agago and Omoro Districts, where it met and had discussions with Local Government officials, farmers and selected households. Two de-briefing meeting were held, one with the PMU in Gulu on 11 December 2018, and another with Ministry of Finance, Planning and Economic Development (MFPED) on 13 December 2018. A wrap-up meeting with the Permanent Secretary, MoLG was held in Kampala on 14 December 2018. Key Mission Agreements and Conclusions Notable progress has been realised by the project. Technical support to the first batches of 600 famers' groups (FGs), through extension, and mentoring of the first batch of 2000 vulnerable households has been largely done. Evaluation of bids for construction/ rehabilitation of the first batch of 614km of community access roads is almost finalised with works expected to commence in February 2019, while a total of 216 community based natural resources management (CBNRM) plans have been developed and 191 of them financed. A total of 42 renewable energy technologies (RETs) have been installed in public institutions and are function well. All proposed sites for 3 bulk and 8 satellite markets have been identified and procurement of consultants to design the market structures is in advanced stages. The project is currently conducting Participatory Rural Appraisal exercises to identify the second batches of 600 FGs and 2000 vulnerable households for mentoring. Overall, project implementation remains behind schedule largely due to delays in procurement processes. While one of the Loan Covenants is the appointment of a delegated PRELNOR's Contract Committee to consider and approve all project procurements, the one put in place was restricted to procurements whose value doesn't go beyond UGX 200 million. As most of the significant procurements have value of more than UGX 200 million, they are handled by MoLG's Contract Committee which, has however led to very significant delays as it takes long to consider and approve. Actions Responsibility Deadline Status PRELNOR Contracts Committee will be fully delegated to handle all PS, MoLG Immediate Agreed the project's procurements. Conducting Mid-term Review (MTR) IFAD and GoU 31 May 2019 Agreed 4/38 D. Overview and Project Progress Component A – Rural Livelihoods Farmer group capacity building. All Batch 1 farmer groups (FG) have received training and refresher training in development of a group constitution, leadership skills and sustainability of groups. To date 574 of the target 600 FGs have developed, and are implementing their action plans. Each FG therefore has a unique action plan that requires tailored extension support to increase productivity and to link to market opportunities. Of these groups, 200 have been identified as agribusiness groups and have received additional support in farming as a business, postharvest handling and in linking to markets. Selection of 600 FGs under Batch 2, started in the first quarter of 2018/19 and will end in February 2019. After a training needs assessment, the new FGs will receive training in areas like governance, leadership, group dynamics, visioning, GALS, farming as a
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