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The World Bank Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD1052 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 248.3 MILLION (US$350 MILLION EQUIVALENT) TO THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA FOR A SECOND AGRICULTURAL GROWTH PROJECT March 5, 2015 Agriculture Global Practice Eastern Africa 3 Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective January 31, 2015) Currency Unit = Ethiopian Birr (ETB) ETB 20.2685 = US$1 US$1.4098 = SDR 1 FISCAL YEAR July 8 – July 7 ABBREVIATIONS AND ACRONYMS ADPLAC Agriculture Development Partners Linkage Advisory Council AECID Agencia Española de Cooperación Internacional para el Desarrollo (Spanish Agency for International Development) AGP1 First Agricultural Growth Project AGP2 Second Agricultural Growth Project ATA Agricultural Transformation Agency AWP&B Annual Work Plan and Budget BoA Bureau of Agriculture BoW Bureau of Water CAADP Comprehensive Africa Agriculture Development Program CASCAPE Capacity Building for scaling up of evidence based best practices in agricultural production in Ethiopia CBSP Community Based Seeds and forage Production groups CDSF Capacity Development Support Facility CIG Common Interest Group CLPP Community Level Planning Process CPAR Country Procurement Assessment Review CPS Country Partnership Strategy CRGE Climate Resilience Green Economy CSA Climate Smart Agriculture CU Coordination Unit DA Development Agent DFATD Department of Foreign Affairs, Trade and Development of Canada DSM Direct Seed Marketing DOC Day Old Chick DP Development Partners EC European Commission EGTE Ethiopian Grain and Trade Enterprise EIAR Ethiopian Institute of Agriculture Research EIRR Economic Internal Rate of Return EPRDF Ethiopian People’s Revolutionary Democratic Front ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan ETB Ethiopian Birr FAO Food and Agriculture Organization of the United Nations FAR-CU Federal Agricultural Research Coordination Unit ii FCA Federal Cooperative Agency FCU Federal Coordination Unit FHH Female Headed Household FM Financial Management FMS Financial Management Specialist FREG Farmer Research and Extension Group FSC Federal Steering Committee FTC Farmer Training Center ha Hectare HDI Human Development Index HHI Household Irrigation HQ Headquarters GoE Government of Ethiopia GTP Growth and Transformation Plan GTP2 Second Phase of Growth and Transformation Plan IA Implementation Agency IBRD International Bank for Reconstruction and Development IC Individual Consultant ICB International Competitive Bidding IDA International Development Association IFR Interim Financial Report ISP Implementation Support Plan IT Information Technology IWUA Irrigation Water User Association KDC Kebele Development Committee M&E Monitoring and Evaluation MDG Millennium Development Goal MHH Male Headed Household MHIS Micro-irrigation and Household Irrigation Systems MDTF Multi-Donor Trust Fund MFI Micro Finance Institution MoA Ministry of Agriculture MoFED Ministry of Finance and Economic Development MoI Ministry of Industry MoT Ministry of Trade MoU Memorandum of Understanding MTR Mid Term Review MSP Multiple Stakeholder Platform NAIC National Artificial Insemination Center NBE National Bank of Ethiopia NCB National Competitive Bidding NCF National Cooperative Federation NNP National Nutrition Program NPV Net Present Value OFAG Office of the Federal Auditor General PAD Project Appraisal Document PAP Project Affected People PDO Project Development Objective PIF Policy Investment Framework PIM Project Implementation Manual PMIS Performance Management Information System iii PFM Public Financial Management PO Producer Organization P-RAMS Procurement Risk Assessment Management System QCBS Quality and Cost Based Selection RAR-CU Regional Agricultural Research Coordination Unit RARI Regional Agricultural Research Institute RCA Regional Cooperative Agency RCU Regional Coordination Unit RED&FS Rural Economic Development and Food Security RUSACCO Rural Savings and Credit Cooperative RPF Resettlement Policy Framework RSC Regional Steering Committee SA Social Assessment SBD Standard Bidding Document SC Steering Committee SMS Subject Matter Specialist SNNPR Southern Nations, Nationalities and People’s Region SORT Systematic Operations Risk – Rating Tool STC Short Term Consultant SSI Small Scale Irrigation SWG Sector Working Group TA Technical Assistance TC Technical Committee THH Total Households TTL Task Team Leader UNDP United Nations Development Program USAID United States Agency for International Development VC Value Chain WCU Woreda Coordination Unit WDC Woreda Development Committee WOA Woreda Office of Agriculture WoFED Woreda Office of Finance and Economic Development WSC Woreda Steering Committee ZOA Zonal Office of Agriculture Regional Vice President: Makhtar Diop Country Director: Guang Zhe Chen Senior Global Practice Director: Juergen Voegele Practice Manager: Tijan M. Sallah Task Team Leader: Andrew Goodland iv Ethiopia Second Agricultural Growth Project TABLE OF CONTENTS I. STRATEGIC CONTEXT .................................................................................................1 .......................................................................................................... 1 ............................................................................ 2 .................................... 6 II. PROJECT DEVELOPMENT OBJECTIVES ................................................................7 .................................................................... 7 ................................................................................................... 7 .................................................................................... 8 III. PROJECT DESCRIPTION ..............................................................................................8 .................................................................................................... 8 ...................................................................................................... 12 ...................................................................................... 12 ........................................... 13 IV. IMPLEMENTATION .....................................................................................................14 .................................................. 14 ........................................................... 15 ............................................................................................................. 16 V. KEY RISKS AND MITIGATION MEASURES ..........................................................16 .............................................. 16 VI. APPRAISAL SUMMARY ..............................................................................................18 ............................................................................ 18 .................................................................................................................... 19 ............................................................................................. 19 .............................................................................................................. 20 ................................................................................... 21 ...................................................................... 22 Results Framework and Monitoring ..........................................................................................24 v Annex 2: Detailed Project Description .......................................................................................37 ..................................................................................58 ..................................................94 ....................................................................................98 ...................................................................101 Annex 7: Economic and Financial Analysis ............................................................................113 Annex 8: Map of AGP2 Woredas .............................................................................................131 vi PAD DATA SHEET Ethiopia Second Agricultural Growth Project (P148591) PROJECT APPRAISAL DOCUMENT AFRICA Report No.: PAD1052 Basic Information Project ID EA Category Team Leader(s) P148591 B - Partial Assessment Andrew D. Goodland Lending Instrument Fragile and/or Capacity Constraints [ ] Investment Project Financing Financial Intermediaries [ ] Series of Projects [ ] Project Implementation Start Date Project Implementation End Date 26-Mar-2015 10-Oct-2020 Expected Effectiveness Date Expected Closing Date 31-Jul-2015 10-Oct-2020 Joint IFC No Practice Senior Global Practice Country Director Regional Vice President Manager/Manager Director Tijan M. Sallah Juergen Voegele Guang Zhe Chen Makhtar Diop Borrower: Federal Democratic Republic of Ethiopia Responsible Agency: Ministry of Agriculture Contact: Keberu Belayneh Title: AGP Coordinator Telephone No.: 251116461971 Email: [email protected] Project Financing Data(in USD Million) [ ] Loan [ ] IDA Grant [ ] Guarantee [ X ] Credit [ ] Grant [ ] Other Total Project Cost: 581.80 Total Bank Financing: 350.00 Financing Gap: 216.30 vii Financing
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