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Document of The World Bank Public Disclosure Authorized FOR OFFICIAL USE ONLY Report No: 49169-ZR PROJECT APPRAISAL DOCUMENT Public Disclosure Authorized ON A PROPOSED GRANT IN THE AMOUNT OF SDR 77.3 MILLION (US$ 120 MILLION EQUIVALENT) TO THE. DEMOCRATIC REPUBLIC OF CONGO FOR AN AGRICULTURE REHABILITATION AND RECOVERY SUPPORT PROJECT Public Disclosure Authorized March 4, 2010 Agriculture and Rural Development Unit Country Department AFCC2 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 Public Disclosure Authorized Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective January 3 1,20 10) Currency Unit = Congolese Franc (CDF) CDF 915.000 US$ 1 US$ 1.55419 = SDRl FISCAL YEAR January 1 - December31 ABBREVIATIONS AND ACRONYMS ACSA Community Animal Health Agent (Agent Communautaire en Sante' Animale) ADRAO West African Rice Development Association , WARDA (Association de De'veloppement de la Riziculture en Afrique de I'Ouest) AfDB African Development Bank ARRSP Agricultural Rehabilitation and Recovery Support Project AS Audit Standard ASR Agriculture Sector Review (WB) BTC Belgian Technical Cooperation CAF Country Assistance Framework (WB) CARDESA Centre for Agricultural Research and Development for Southern Africa CARG Agricultural and Rural Management Council (Conseil Agricole et Rural de Gestion) CAS Country Assistance Strategy (WB) CBO Community-Based Organizations CDD Community-Driven Development , CFAA Country Financial Accountability Assessment CoNaSem National Seed Council (Conseil National Semencier) (DRC) COPEMECO Confederation of Small and Medium Congolese Enterprises (Confideration des Petites et Moyennes Enterprises Congolaises) CoProSem Provincial Seed Councils (Conseils Provinciaux Semenciers) (DRC) CPAR Country Procurement Assessment Review CQ Consultants' Qualification DflD Department for International Development (UK) DMC Delegated Management Contractor DPCC District Project Coordination Committee DPCU District Project Coordination Unit DRC Democratic Republic ofCongo DSCRP Growth and Poverty Reduction Strategy Paper (Document de la Strategie de Croissance et de Reduction de la Pauvrete') DVDA Directorate ofAgricultural Access Roads (Direction des Voies de Desserte Agricole) (DRC) EITI Extractive Industries Transparency Initiative EMRRP Emergency Multi-sector Rehabilitation and Recovery Project (WB) ERR Economic Rate ofReturn ESIA Economic and Social Impact Analysis ESMF Environment and Social Management Framework ES W Economic Sector Work EU European Union FA0 Food and Agriculture Organization of the United Nations FEC Federation of Congolese Entrepreneurs (Fede'ration des Entreprises du Congo) FIAS Foreign Investment Advisory Service ii FOR OFFICIAL USE ONLY FM Financial Management FO Farmers Organization FONER National Road Maintenance Fund (Fonds National d'Entretien Routier) (DRC) FRR Financial Rate of Return GDP Gross domestic product Ha Hectare HIM0 High Labor Intensity Method (Haute Intensite' de Main-d'Guvre) HIPC Highly Indebted Poor Country IA ' Internal Audit IAD International Audit Department IC Individual Consultant ICB International Competitive Bidding IDA International Development Association IFAD International Fund for Agricultural Development IFC International Finance Corporation IFMIS Integrated Financial Management Information System IFR Interim Financial Report IMF International Monetary Fund IMNC Institute ofNational Museums of Congo (Institut des Muse'es Nationaux du Congo) INADES African Social and Economic Development Institute (Institut Apicain pour le DPveloppement Economique et Social) INERA National Institute of Studies and Agricultural Research (Institut National d'Etudes et de la Recherche Agricole) (DRC) IPPF Indigenous Peoples Planning Framework IRR Internal Rate of Return ISA International Standard on Auditing Km Kilometer LCS Least Cost Selection M Million MDR Ministry of Rural Development (Minist2re du De'veloppement Rural) (DRC) MinAgri Ministry ofAgriculture (DRC) MTR Mid-Term Review NGO Non-Governmental Organization NPV Net Present Value PAD Project Appraisal Document PAP Proj ect-Affected Person PC Project Coordinator PCMC Provincial Coordination and Monitoring Committee PCU Project Coordination Unit PDOs Project Development Objectives PEFA Public Expenditure and Financial Accountability PFM Public Finance Management PHRD Poverty and Human Resources Development (Japan) PIM Project Implementation Manual PIU Project Implementation Unit PMP Pesticide Management Plan PMURR Emergency Multi-sector Rehabilitation and Recovery Project (Programme Multisectoriel de Rehabilitation et de Reconstruction) (WB) PPF Project Preparation Facility PRAPE Programme de Relance Agricole de la Province de 1'Equateur PRCG Enhancing Governance Capacity Project (Projet de Renforcement des Capacite's de Gouvernance) PRGF Poverty Reduction and Growth Facility (IMF) PRSP Poverty Reduction Strategy Paper PSD Private Sector Development PUACV Program for Improvement of Living Conditions (DRC) 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. QCBS Quality and Cost Based Selection RAP Resettlement Action Plan RN Route National (National Highway) . RPF Resettlement Policy Framework RVF National Waterways Company (Regie des Yoies Fluviales) (DRC) SBD Standard Bidding Documents (WB) sc Steering Committee SENASEM National Seed Service (Service National des Semences) (DRC) SEZ Special Economic Zone SIA Social Impact Analysis SIL Specific Investment Loan SNV National Extension Service (Service National de Vulgarisation) (DRC) SRFP Standard Request for Proposals (WB) sss Single Source Selection T Ton TAP Transparency, Accountability, and Participation TORS Terms of Reference TTL Task Team Leader (WB) UN United Nations UNDP United Nations Development Program UNOPS United Nations Office for Project Services USAID United States Agency for International Development VG Village Group voc Vehicle Operating Costs vs Veterinary Services (DRC) WB World Bank WECARD West and Central Africa Council for Agricultural Research and Development WFP United Nations World Food Program WUA Water User Association Vice President: Obiageli Katryn Ezekwesili Country Director: Marie Francoise Marie-Nelly Sector Director: Inger Andersen Sector Manager: Karen Mcconnell Brooks Task Team Leader: Nicolas Ahouissoussi Co-Task Team Leader: Amadou Oumar Ba iv DEMOCRATIC REPUBLIC OF CONGO DRC .Agriculture Rehabilitation and Recovery Support Project CONTENTS Page I. STRATEGIC CONTEXT AND RATIONALE ................................................................. 1 A . Country and sector issues .................................................................................................... 1 B. Rationale for Bank involvement ......................................................................................... 3 C . Higher level objectives to which the project contributes .................................................... 3 I1. PROJECT DESCRIPTION ................................................................................................. 4 A . Lending instrument ............................................................................................................. 4 B. Project development objective and key indicators.............................................................. 4 C . Project areas and components ............................................................................................. 4 D. Lessons learned and reflected in the project design .......................................................... 11 E. Alternatives considered and reasons for rejection ............................................................ 11 I11. IMPLEMENTATION.................................................................................................... 12 A . Partnership arrangements (if applicable) .......................................................................... 12 B. Institutional and implementation arrangements ..... .......................................................... 13 C . Monitoring and evaluation of outcomes/results ................................................................ 14 D. Sustainability ..................................................................................................................... 14 E. Critical risks and possible controversial aspects ............................................................... 15 F. Loadcredit conditions and covenants ............................................................................... 17 IV. APPRAISAL SUMMARY ............................................................................................. 18 A . Economic and financial analyses ...................................................................................... 18 B. Technical ........................................................................................................................... 18 C . Fiduciary ........................................................................................................................... 19 D. Environment ...................................................................................................................... 21 E. Safeguard policies ............................................................................................................