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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 39359-A0 PROJECT APPRAISAL DOCUMENT ON A Public Disclosure Authorized PROPOSED CREDIT IN THE AMOUNT OF SDR 18.5 MILLION (US$30 MILLION EQUIVALENT) TO THE REPUBLIC OF ANGOLA FOR A Public Disclosure Authorized MARKET ORIENTED SMALLHOLDER AGRICULTURE PROJECT June 24,2008 Agriculture and Rural Development, AFTAR Sustainable Development AFCS2, Angola 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 May 12,2008) CurrencyUnit = Kwanza 75.00AOA = US$1 US$1.61 = SDRl ANGOLA FISCAL YEAR January 1 - December31 ABBREVIATIONS AND ACRONYMS AD1 Agricultural Development Institute of MINADER COSOP County Strategic Opportunities Paper (IFAD) CPAR Country Procurement Assessment Review ECB Estrategia de Combate a Pobreza - Poverty Reduction Strategy EDA Agricultural Development Office of AD1 EMRP Emergency Multisector Recovery Project (WB) EMTA Economic Management technical Assistance Project (WB) ESMF Environmental and Social Management Framework FA0 Food and Agriculture Organization of the United Nations FAS Social Action Fund ICR Implementation Completion Report IFAD International Fund for Agricultural Development ISN Interim Strategy Note (WB) MDG Millennium Development Goal MINADER Ministry of Agriculture and Rural Development MINUA Ministry ofUrban Affairs and the Environment PAD Project Appraisal Document PC Project Coordinator PCC Project Coordination Committee PPCC Provincial Project Coordination Committee PEDR Rural Extension and Development Program AD1 PHRD Poverty and Human Resources Development (Japan) PISC Project Implementation Sub-committee PIU Project Implementation Unit PPISC Provincial Project Implementation Sub-committee PPIU Provincial Project Implementation Unit .. 11 FOR OFFICIAL USE ONLY PRODECA Northern Region Food-crops Development Project (IFAD) PRSP Poverty Reduction Strategy Paper RPF Resettlement Policy Framework TSS Transitional Support Strategy (WB) UNDP United Nations Development Program WB World Bank WFP United Nations World Food Program Vice President: Obiageli Katryn Ezekwesili Country Managermirector: Albert0 Chueca/Michael Baxter Sector Manager: Karen Mcconnell Brooks Task Team Leader: Aniceto Tim6teo Bila This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization. iii ANGOLA Market Oriented Smallholder Agriculture Project CONTENTS Page A . STRATEGIC CONTEXT AND RATIONALE ................................................................. 1 1. Country and sector issues .................................................................................................... 1 2 . Rationale for Bank involvement ......................................................................................... 2 3 . Higher level objectives to which the project contributes .................................................... 3 B. PROJECT DESCRIPTION ................................................................................................. 5 1. Lending instrument ............................................................................................................. 5 2. Project development objective and key indicators.............................................................. 5 3 . Project components ............................................................................................................. 6 4 . Lessons learned and reflected in the project design .......................................................... 10 5 . Alternatives considered and reasons for rejection ............................................................ 11 C. IMPLEMENTATION ........................................................................................................ 11 1. Partnership arrangements .................................................................................................. 11 2 . Institutional and implementation arrangements.. .............................................................. 11 3 . Monitoring and evaluation of outcomeshesults ................................................................ 13 4 . Sustainability.,... ................................................................................................................... 14 5 . Critical risks and possible controversial aspects ............................................................... 15 6 . Loadcredit conditions and covenants ............................................................................... 16 D. APPRAISAL SUMMARY ................................................................................................. 18 1. Economic and financial analyses ...................................................................................... 18 2 . Technical.. ......................................................................................................................... 19 3 . Fiduciary ........................................................................................................................... 20 4 . Social................................................................................................................................. 21 5 . Environment ...................................................................................................................... 22 6 . Safeguard Policies ............................................................................................................. 23 7 . Policy Exceptions and Readiness...................................................................................... 23 iv Annex 1: Country and Sector or Program Background......................................................... 24 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ................. 38 Annex 3: Results Framework and Monitoring ........................................................................ 42 Annex 4: Detailed Project Description...................................................................................... 51 Annex 5: Project Costs ............................................................................................................... 62 Annex 6: Implementation Arrangements ................................................................................. 64 Annex 7: Financial Management and Disbursement Arrangements ..................................... 71 Annex 8: Procurement Arrangements ...................................................................................... 82 Annex 9: Economic and Financial Analysis ............................................................................. 92 Annex 10: Safeguard Policy Issues ............................................................................................ 99 Annex 11: Project Preparation and Supervision ................................................................... 110 Annex 12: Documents in the Project File ............................................................................... 112 Annex 13: Statement of Loans and Credits ............................................................................ 113 Annex 14: Country at a Glance ............................................................................................... 115 Annex 15: Maps IBRD 35537 and 35570 ................................................................................ 117 V ANGOLA MARKET ORIENTED SMALLHOLDER AGRICULTURE PROJECT PROJECT APPRAISAL DOCUMENT AFRICA AFTAR Date: June 24,2008 Team Leader: Aniceto Timoteo Bila Country Director: Michael Baxter Sectors: Agricultural extension and research Sector ManagerDirector: Karen M. BrookdInger (34%); Crops (33%); Irrigation and drainage (33%) Andersen Themes: Rural markets (P);Rural policies and institutions (P) Project ID: PO93699 Environmental screening category: Partial Assessment Lending Instrument: Specific Investment Loan Project Financing Data [ 3 Loan [XI Credit [ 3 Grant [ 3 Guarantee [ 3 Other: For Loans/Credits/Others: Total Bank financing (US$m.): 30.00 Proposed terms: The credit would be on hard IDA terms, with a maturity of 35 years, including 10 years of grace period, interest rate at 200 basis points below IBRD lending rate in fixed-rate terms, as defined in “IDA’SNon-Concessional Borrowing Policy: the Case ofAngola”, discussed by the Board of Executive Directors on April 5,2007. Financing Plan (US$m) Source I Local Foreign Total BORROWERRECIPIENT 3.20 0.92 4.12 Beneficiaries 3.03 3 -03 International Development Association (IDA) 27.80 2.20 30.00 International Fund for Agriculture 7.34 0.86 8.20 Development (IFAD) JAPAN: Ministry ofFinance - PHRD Grant 3.55 0.45 4.00 Total: 44.92 4.43 49.35 Borrower: Republic ofAngola Responsible Agency: Ministry ofAgriculture and Rural Development Luanda Angola vi Expected effectiveness date: October 1,2008 Exuected closing. date: Seutember 30.2014 Does the project depart from the CAS in content or other significant respects? Re$ []Yes [XINO PAD I.C Does the project require any exceptions from Bank policies? []Yes [XINO Re$ PAD IC.:G Have these been approved by Bank management? []Yes [INo Is approval for any policy exception sought from the Board? []Yes [XINO Does the project include any critical
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