AIDCO/543/04-EN Orig.
EUROPEAN COMMISSION EuropeAid Co-operation Office
Horizontal operations and LRRD Food security and thematic support
Brussels,
Proposal for a Commission Decision
To support improved food security in Afghanistan
(To be presented to the Food Security and Food Aid Committee)
Project 2004-2005 Biannual Food Security Programme in favour of Afghanistan
Recipient Country Afghanistan
Authority presenting the project Government of Afghanistan
Sectoral classification (according to 52010 – Food Aid/Food Security OECD classifications)
Commitment proposed as grant €30 Million
Budget Year 2004 : € 20 Million Budget Year 2005 : € 10 Million
Case officers:
Head of Delegation to Afghanistan: Mr Karl Harbo Desk officer, RELEX/E/3: Ms Helene Radcliffe Desk officer AIDCO F5: Mr Stefano Corrado
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SUMMARY
After a long period of wars and socio-economic turmoil that has resulted in severe damages and disruption to the national infrastructure, including in the rural sector, the Afghan Transitional Authority (ATA) has embarked upon in comprehensive reconstruction programmes which is described in the 2002 National Development Framework and embedded in the successive 2002/2003/2004 National Development Budget as well as in the 2004 “securing Afghanistan future” 7-year public investment programme. Irrigation and water management always appears as key investment priority to enhance agriculture growth and reduce poverty and food insecurity. Similarly, the lack of reliable information on poverty and vulnerability is also recognized as a major constraint for improved policy and planning. Under its 2003 Food security programme (EC FSP 2003) the Commission has already taken steps to support these key priorities.
With the present 2004-2005 Food Security Programme, it is proposed to consolidate the 2003 food security/water management programme component which is already on going in Kunduz, Baghklan and Takhar provinces (FSPWM 2003) and extend its scope in the neighbouring poor and food insecure province of Badakhshan. In the latter region urgent needs exist for rehabilitating and/or improving the local irrigation schemes and upstream water catchments areas and to promote in parallel social empowerment and reorganisation. It is also proposed to further strengthen the 2003 support to the development of a national food security and poverty information system, by supporting the Food and Agriculture Information and Policy Unit of the Ministry of Agriculture and Animal Husbandry (FAIPU-MAAH)
A RELEVANCE
1. Consistency with global objectives
1.1 EC aid policy objectives and priorities
After the defeat of the Taliban regime the EC prepared a multi-sectoral support programme aimed at long term political and socio-economic stabilisation and community development in Afghanistan. The 2004-2005 EC Food Security Programme (FSP 2004-2005) is in accordance with the EC's development cooperation objectives (art 177 of EU Treaties) and supports the principles of the Bonn Agreement to reconstruct Afghanistan. Furthermore, it builds on the FSP 2003 and supports the ATA’s institutional reform, capacity building and policy planning objectives.
1.2 Objectives of NIP
The CSP/NIP identifies Rural Development & Food Security as one of the key focal sectors. It foresees EC support at two levels: (i) the development of instruments aiming at a better comprehension and reduction of people’s vulnerability in rural areas in the medium term, and (ii) the development of programmes looking at long term rehabilitation and the development of Afghan farmers producing conditions (including irrigation and the strengthening of rural production).
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1.3 Link with annual country review
The first country review for Afghanistan took place on 19 June 2002. This review underlined the importance of food security in the recovery and reconstruction process of the country while highlighting the need of adequately integrating the food security actions with the projects/programmes put in place trough the other EC instruments.
2. Sectoral analysis
2.1 Food security situation in Afghanistan
Poverty is widespread throughout rural Afghanistan, but there are notable variations across geographical areas. Data from the 2003 National Risks and Vulnerability Analysis suggest that in 2003 21.3% of the rural households were considered as food insecure (food consumption below 2100 cal/day). A number of observations seem to suggest that the supply of food in rural Afghanistan, and its local availability is not an issue (though seasonal trends and location specific shocks cannot be ruled out). In addition to growing domestic production, data suggest that private imports of wheat into Afghanistan have been substantial in recent year, with large numbers of traders who are highly responsive to market forces bringing grain from Pakistan, Kazakhstan and other countries in the region. Instead the body of evidence justifying households food intake gaps weights in favor of the demand side (lack of purchasing power).
With 85% of the approximately 22 million Afghan populations living in rural areas, on farm activities play a key role in the household economy and in the national growth and employment rates. Stimulating agricultural growth by raising major constraints is seen as a long term strategy to increase farm income, generate employment and reduce poverty and food insecurity.
In 2003, one third of the rural households reported that lack of irrigation is a key agricultural constraint. After water, access to livestock and tools for farming is the next most important consideration. Households associated with poppy production have significant lower poverty rates. In particular, only 33 percent among households reporting production of poppy are poor, compared with 49 percent among those who are not involved in poppy. However, this situation might change tremendously if eradications campaigns are conducted without accompanying measures.
2.2 Status of national policy
Following a 20-year long war period, and the socio-economic disruption and deterioration of the national rural infrastructure that this has caused, the Afghan Transitional Authority (ATA) has embarked upon a comprehensive reconstruction programme. Although food security is recognised as a crucial result to be achieved, there is no specific governmental food security policy. Instead, food security is integrated into a more general poverty reduction framework and mainstreamed across several national programmes (Natural Resources Management, Livelihoods and Social Protection being the most important ones). Under the Natural Resources Management (NRM) national programme of the 2002 National Development
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Framework, emphasis was put on supporting rural population through, inter-alia, the rehabilitation and improvement of small and medium scale irrigation schemes according to a river basin integrated management based approach.
A Sectoral Policy & Strategy Framework for the rehabilitation and development of agriculture and natural resources in Afghanistan was developed later on and recently approved by the ATA. The document states that:
Water is critical for the development of the natural resource sector. All irrigation rehabilitation work, and agricultural, forestry and rangeland activities are to be undertaken within the framework of the river basin management approach that the government has adopted for water resource management. Further, the irrigation work on traditional systems will support and facilitate community based management and ownership of the schemes. … Such policy and strategy framework provides valuable orientations for water management in the country and already received significant financial support from the donors.
Similarly, the establishment of national poverty/vulnerability surveillance systems is recognised as a key priority under the Livelihood and Social Protection National Programme of the National Development Framework. Hence it appears as key investment priority under the 2003 and 2004 National Development Budget.
3 Problem analysis
3.1 Target groups, beneficiaries, and stakeholders a) Target groups: Beside the Ministry of Irrigation, Water Resources and Environment (MIWRE) and the Ministry of Agriculture and Animal Husbandry (MAAH) staff who will benefit from training in undertaking the programme’s related functions, the private sector will also benefit from the irrigation/water management component by receiving training on technical matters and tendering procedures. The capacities of the MIWRE and MAAH provincial staff are to be considered as very weak. b) Final beneficiaries: These are the water users who will benefit from more secure water supply for irrigation and civil use. The poor and powerless farmers/sharecroppers of Badakhshan and Kunduz river basin living in the bottom valleys, those suffering of unfair water distribution in their own community will particularly benefit from increased water availability and more equitable water distribution. Recent finding have shown that an important percentage of the very poor population in Badakhshan owns some land (average 0.25 ha). This improved water availability should stimulate agricultural growth in the entire area and in the long term generate sustainable employment for landless and/or poor vulnerable groups. Similarly the poorest communities living in the upper catchment’s areas will also be among the direct beneficiaries, as the adopted river basin approach requires an integrated natural resources’ conservation approach, ranging from mountains’ tops to lower valleys.
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With regard to the FAIPU-MAAH component, the beneficiaries will be the poor and vulnerable families who will benefit from improved decision making for resources allocation and targeting. c) Project stakeholders
As indicated by the government policies, it is desirable to develop a partnership between the public sector and the communities at the provincial/district level interface. To facilitate the development of this relationship the most important partners to the MIWRE and the programme will be the NGOs that will have to become active in community mobilisation and social works.
3.2 Specific problems
As already stated, agriculture growth and employment generation in Afghanistan depend to a large extent on water availability and water security.
This is particularly the case in Badakshan province, where a big share of the funds of this decision would be allocated and where the level of poverty is particularly acute. This situation, combined with the support given by northern warlords has pushed the development of poppy cultivation to worrying levels. It seems that the ATA will have no other choice but conducting targeted eradication campaigns. Poor farmers in particular, will tremendously suffer from these measures and it is crucial to anticipate and assist this process by providing substantial investment to generate alternative livelihoods and reduce poverty causes in the long term. This project will provide short term employment through irrigation schemes rehabilitation and conservation works which will mitigate the impact of eradication in the short term. It will stimulate at the same time agriculture growth in the long term and facilitate the creation of sustainable alternative livelihoods for former poppy growers and poppy specialised workers. The project will be a component of a broader multi sector strategy looking at improving peoples livelihood through access to basic services, roads constructions, access to finance.
At national and more particularly in the selected provinces key problems in the water sector relate to poor irrigation infrastructure and unsustainable water management practices. They can be summarised as follows:
• Lack of access to irrigation water Nearly 90% of all irrigation systems are traditional schemes developed and built by farmers. While these systems have generally survived during the last twenty years of turmoil, they still require significant support for physical rehabilitation and/or improvement. In many cases, their traditional management has been seriously affected by local commanders who frequently did not respect neither the water rights nor the authority of the mirabs1. • Reform, capacity building and knowledge base Globally, the past 20 years of development experience have led to a consensus that a central function of the government is to establish an enabling legal and regulatory environment where private risk-taking and investment can succeed and
1 Local water masters
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generate income and employment. Officials from line ministries concerned with agriculture, irrigation, and rural development have had little exposure to these new developments. In addition, the human resources and technical capacity of the Government’s line Ministries have been decimated by years of war, but so too has the sector knowledge base including data, monitoring stations and records, reports and the results of studies, and maps. • Water resources management and drought mitigation With the development of the country, demands on surface water and groundwater resources are likely to grow substantially. Attention must be given to a number of important water resource management issues if the anticipated results are to be sustainable and costly disputes avoided. The problems to be solved include: trans- boundary riparian aspects, respect of existing water rights, flood control and ground water recharge.
In the current context the data needs are acute and multiple. Most of the information is collected by various international aid agencies following different frameworks and methodologies. The need to rationalise and institutionalise information gathering on poverty and vulnerability has been partially addressed through the EC FSP 2003. However, there is now a crucial need to secure funding to one of the core component of the system, i.e. the Food and Agriculture Information and Policy Unit established within the MAAH. Such component is presently implemented by FAO and provides accurate and timely information on food and agriculture which are crucial elements in understanding rural poverty and food insecurity.
4. Origins and preparation of the programme
The programme was discussed jointly with the MIWRE as well as the MAAH. It reflects government priorities expressed in the 1382 and 1383 National Development Budget. The irrigation and water management programme component was designed based on the findings of a feasibility study concluded in April-May 2004. At the end of the field works the Consultant team presented the findings of the study and the Programme assumptions and objectives at a stakeholder workshop which was chaired by the MIWRE. In that occasion, the programme was formally approved by the workshop’s participants.
The Food and Agriculture Information and Policy Unit programme component is the result of joint discussions between FAO, the EC and the MAAH. This unit is already operational but requires further support for consolidating its present layout and expanding the scope of activities.
B FEASIBILITY
5 Project description
5.1 Overall objective
The present programme will contribute to achieving sustainable national reconciliation, respect of the right of law and economic recovery of Afghanistan.
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Food insecurity and natural resource mismanagement are perceived as very critical problems endangering the process of normalisation and economic growth. Therefore, these problems will be addressed by this programme by focusing attention on one of the poorest and most isolated provinces of the country, Badakhshan.
5.2 Programme purpose
The purpose of this programme is to assure the improved availability and access to appropriate food. The project purpose is seen in a broader context of improved licit livelihood of the rural population and will result in a direct contribution to the above- mentioned overall objective. It will further contribute in improving water resource management through the development of a river basin management approach and assist in developing core regulatory functions of the ATA related to this aspect. Finally, it will further enhance a better policy formulation and programming of vulnerability assistance activities.
5.3 Programme results and activities
Result no. 1: The sustainable irrigation water supply to communities and the functioning and appropriate management of the destroyed and/or damaged irrigation systems is assured.
This programme component will be carried out in close collaboration with the MIWRE and the MAAH. Two essential sub river basins of the Amu Darya river basin will be prioritised: the Kunduz sub river basin (in the Kunduz, Takhar and Baghlan provinces which were already targeted under the FSPWM 2003) and the Kotcha and other sub river basin of the Badakhshan provinces.
Activities will consist of physical rehabilitation and improvement of irrigation schemes as well as river training and bank protection works executed to safeguard rehabilitated infrastructure
Besides the physical rehabilitation of the irrigation schemes the institutional dimension of irrigation will be considered equally to develop improved and fair social water management practices and ensure that appropriate management structures are in place to ascertain the running and maintenance of the systems. In this regard, village based water user’s associations development/improvement will be promoted through social works and ad-hoc investigation.
As recommended in the river basin management policies, the rehabilitation has to consider the regeneration of the upstream water catchments areas to improve water recharge and reduce floods intensity. Specific activities will include: soil and water conservation works on the hill slopes supporting forest re-generation including pistachio and almond plantations, livestock-based agro-forestry activities, community mobilization for the development of regulations on farming and grazing on hill slopes, etc.
The MIWRE and the MAAH were actively engaged in the preparation of this programme component. In co-ordination with the Ministry of Reconstruction & Rural Development (MRRD) they will play a leading role in the planning, designing and
7 AIDCO/543/04-EN Orig. supervising the construction works, the contract management of implementing agencies, etc. A range of capacity building measures shall provide the central and provincial MIWRE and MAAH offices with the required skills and physical means. Along with “on the job training”, the programme component will strengthen the capacity of the MIWRE and the MAAH in further developing the establishment of a river basin management master plans and authorities.
Result no. 2: MAAH provides accurate and timely information on food production, markets situation and other agricultural topics for improved policy and programming.
This nationwide programme component will be carried out within the MAAH. It will contribute to further develop the Food and Agriculture Information and Policy Unit of the MAAH and its integration in the National Poverty, Vulnerability and Food Security Information System (EC FSP 2003).
International technical assistance and equipment will be provided to further develop the data collection methodology, the MAAH staff capacities at central level for data processing/data analysis and at decentralised level for data collection. The project will also organize data use for improved policy and programming.
Gender aspects are very important for this programme. As such women will profit from the programme. In particular women will play a leading role in the Programme's upper catchments conservation works. Daily involved in the firewood collection, women quickly realize the importance of reinstating forests and provide an important and useful impetus to works of this nature. Although the MIWRE and the MAAH have female staff, women are hardly involved at high decision making level. However both Ministries are very open to drive a better gender integration in their administration and the project will contribute to this process by facilitating female staff participation and representation.
5.4 Indicators
The adoption of quantifiable and verifiable indicators is proposed in order to measure the extent to which the objectives of the programme will be achieved, and to make possible the needed programme adjustments throughout the way.
The achievement indicators need to be associated with target thresholds (minimum performance) and will be refined according to the situation at the programme starting date, regularly monitored and adjusted if necessary during the programme implementation phase.
The following indicators have been formulated: ¾ Indicators for overall objectives: state of control of ATA in intervention provinces; rate of law enforcement; growth rate of the economy. ¾ Indicators for programme purpose: decrease of food vulnerable cases in intervention areas; evolution of nutritional situation of poorest sections of population. ¾ Indicators for programme results. Some of these indicators are listed below:
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Result no.1: ○ Number (min 14 in Badakhshan) of irrigation schemes rehabilitated and improved. ○ Percent increase (15% min) in the major crops’ yields. ○ Rate of mitigation of the effects of high flow events on the rehabilitated intakes. ○ Number of schemes under community management (min 14 in Badakhshan). ○ Percent reduction(50% min) of occurrence of conflicts over water distribution modalities. ○ Hectares (12,000 min) of hill slopes protected against erosion. ○ Hectares of hill slopes gazetted for grazing and farming limitations under RBA. ○ Number of trees (poplar and the like) planted in agro-forestry project. ○ Hectares of re-generated existing pistachio plantation on hill slopes. ○ Occurrence of disastrous floods.
Result no. 2: ○ Number of national experts available to provide information according to international standards by end 2008. ○ Number of meteorological information bulletin produced ○ Number of Crops yields forecast produced and disseminated ○ Number of programme designed or policy reformed due to results produced ○ Office and transport facilities, technical equipment provided to MAAH
6 Project analysis
6.1 Lessons from past experience
Following the Taleban withdrawal in 2001, EC food security related project were directly implemented by NGOs and UN agencies. While these projects have certainly boosted rural recovery and food security, their impact is difficult to assess as they were implemented outside of any national policy framework. In addition, NGOs were not always able to mobilise the required technical expertise. With the establishment of the Afghan Transitional Authority (ATA) beginning 2002, EC funds, under the FSP 2003, have been channelled directly to support the government development policies, regulatory frameworks and programmes. The posting of experienced technical assistance in key ministerial offices offers today a tremendous opportunity to develop government capacities in executing national programmes, increasing government ownership and overcoming technical constraints.
6.2 Linkage with other operations
This intervention will build on the on-going € 12.5 million FSPWM 2003 project in Northern Afghanistan (Kunduz, Takhar and Baghlan provinces), by providing additional resources and replicating it to the neighbouring province of Badakshan. It will also build on the € 3.5 million EC 2003 support programme for the establishment of a national livelihood-based food security and nutritional surveillance system by strengthening the Food and Agriculture Information and Policy Unit at the MAAH.
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The EC assistance is complementary to several other core initiatives:
Irrigation/water management component (result 1): • ADB provides support at central level to further develop the policy framework and reorganisation/reform of the MIWRE. ADB also finances a USD 15 million emergency irrigation rehabilitation and government capacity building project (establishment of river basin authority); a USD 10 million. to a Balkh river basin management project (North Afghanistan); a USD 80 million co-financed at 50% by the Canadian International Development Agency and the Saudi Arabia fund for river basin management project in Harirud (West Afghanistan) • World Bank supports ministry capacity building at central and decentralised level to enable government to implement river basin management including the rehabilitation of the 166 hydrological stations, institutional support, capacity building and irrigation schemes rehabilitations and improvement (nationwide except areas covered by other donors, USD 40 million) • USAID invested in irrigation schemes rehabilitation in the south of the country and to a lesser extent addressed emergency irrigation rehabilitation in the north (USD 20 million). • GTZ/German government has expressed interest in complementing competences and resources including financial and expand its activities to Badakhshan province. Their potential complementary involvement could be in the field of agriculture.
Food and Agriculture Information and Policy Unit component (result 2): The proposed intervention has been funded by the German cooperation for the past two years. The EC will take over as from mid 2005. In co-ordination with the present National Surveillance System project, this additional component will also complement the US funded Famine Early Warning System Network (FEWS Net).
6.3 Economic and cross-sectoral appraisals
A number of economic and cross sectoral studies and appraisals have been identified to ensure that the programme is built on a firm technical basis. Some of these were already completed within the framework of the FSPWM 2003, but no appraisals have been conducted yet on the overall economic impact of improved river basin management. This will be assessed under the Amu Darya RBA and the master plan to be prepared with the assistance of the programme.
For the irrigation infrastructure, the viability of irrigation scheme rehabilitation in Badakhshan has been verified at preliminary level by the pre-feasibility mission and will be further studied to see what investments and cropping systems produce the highest economic return rates. In the neighbouring provinces covered by the FSP 2003 but also benefiting from this 2004/05 FSP, preliminary results indicate the following:
The costs for rehabilitating and/or improving irrigation schemes depend first on the nature of the works (the range is between € 50-300 per hectare). The benefits can be extremely high in terms of re-establishing or improving water supply and thus bringing back land under irrigation, or increasing the cropping intensity. Figures for yearly net benefits are as follows: • Cereal (wheat in winter or paddy in summer): € 200-500 per hectare; • Fruits (melons) and vegetables (beans, potatoes, onions): € 500 -1000 per hectare.
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As can be seen by comparing irrigation rehabilitation/improvement costs with benefits, the latter cover the former within at most one year. Benefits from physical and social works on soil & water conservation and social water management are difficult to quantify at this stage. However we know from international best practices that ignoring them would just make the investment useless. A recent study financed under the FSPWM 2003 has confirmed the feasibility of such works through strong community based oriented forest plantation following a range of development support aiming at addressing communities development priorities.
Little tangible socio economic data are available on the target communities and it will be important to understand the social dynamics, particularly the issue of water management. A social development assessment aimed at 'preparing the ground' for the rehabilitation/improvement works (irrigation rehabilitation and river training works) will be an early priority. Concurrently, the best ways and means whereby women and minorities can be included in the programme will be explored.
6.4 Risks and assumptions
The most important risk derives from political instability, which would impact on security. The Amu Darya river basin is located in the North-East of the country and at present is relatively risk free. Although this may not always be the case it must be assumed that efforts by the international community to stabilise Afghanistan and promote good and responsibly governance will be maintained.
Other risks to a successful execution include a weak public administration, the lack of absorptive capacity by the line ministries, a poorly equipped and trained private sector and the lack of skilled NGOs. Arguably, the greatest unknown factor is the capacity of the beneficiaries to adapt to changes and apply good water management rules in a reasonable and equitable manner. Little sustainable benefit will accrue from the rehabilitation and improvement activities of the irrigation schemes which will be promoted by the present programme without appropriate community participation and the backup of the authorities in water management policy reform and law enforcement.
7. Project implementation
7.1 Physical and non-physical means
A budget of € 27 million will be allocated to the irrigation & water management component for an implementation period of indicatively 5 years from the date in which the present agreement will enter into force. The programme component execution should be supported by two different TA teams. One team of TA consultants shall be appointed by the EC under the standard procurement rules to support the execution of the programme in Badakhshan province while the execution of additional works and services for Kunduz, Baghlan and Takkhar provinces are expected to be conferred to the consultant company already contracted out under the FSPWM 2003 by means of a rider to the present contract.
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The technical assistance staff will be in charge of assisting MIWRE, the provincial and district authorities, the Amu Darya River Basin Authority and local communities in the execution of the programme, by providing advice on and technical direction of the plan of activities. In order to fulfil these tasks with sufficient and adequate expertise an overall amount of € 4,850,000 is allocated for both such TA teams. This envelope will cover the provisions of experts (fees, travels, per-diems, etc.), the running costs of the programme and the relevant capacity building activities. It is reckoned that around 10 TAs will be mobilised for the entirety of the programme life (about 5 years) cumulating an indicative overall amount of 202 man/months
In addition, € 450,000 will be earmarked for audits, evaluations and external support for project preparation and € 700,000 will be allocated for procurement of equipment and offices rehabilitation of the MIWRE and MAAH in all provinces. The investment funds will not exceed € 21 million and will be made available according to the programme workplan of activities. From these funds, it is foreseen that an indicative amount of € 9,200,000 will be used for physical rehabilitation and/or improvement of the irrigation schemes; and indicative amount of € 4,700,000 will be used for river training works, an indicative amount of € 2,500,000 will be used for community mobilisation on social water management, an indicative amount of €4,600,000 will be used on upstream water catchments regeneration. The pre- feasibility study recommended that maximum one third of these funds be allocated to complement the FSP/WM 2003 in Kunduz Baghlan and Takhar. However since the implementation conditions and the rehabilitation priority needs are changing very rapidly, it might be necessary to modify this percentage.
€ 3,000,000 will be allocated to the Food and Agriculture Information and Policy Unit component which will be implemented over an indicative period of three year.
7.2 Organisational and implementation procedures
The different components of the programme will be implemented under the supervision of the EC Delegation in Kabul, which will closely collaborate with the concerned Ministries based on a methodology and work programme to be produced by the successful firm. A Project Steering Committee has been established to ensure monitoring and supervision of the FSPWM 2003. The definition of the composition of such committee as well as their management rules, ToR, the lines of commands, communication channels, etc. have been established through a Memorandum of Understanding. In order to co-ordinate both phases of the EC irrigation/water management project, it is proposed to integrate the project steering committee established under the 2003 FSPWM by including selected representatives of the 2004- 05’ FS/WMP stakeholders.
If proven feasible through an audit to the relevant ministries, the decentralised ex-ante approach2 will be applied for the procurement related to the investment funds (works and services) and the procurement for offices rehabilitation and equipments of the irrigation/water management component. This will confer the government a contracting capacity, while at the same time assuring a prior control by the EC for each action to be financed. More precisely, NGOs or private enterprises will be
2 For further explanations see Practical Guide to EC external aid contract procedures, European Commission / EuropeAid, January 2001.
12 AIDCO/543/04-EN Orig. selected following a local consultation process and the contracting authorities will be the MIWRE and the MAAH. Both the EC Delegation and the TA teams will provide substantial support for the preparation of contracts, of which the contracting authorities will be either the MIWRE or the MAAH. However, if conditions described in Art 53/4, 53/5, 35/1, 35/2 and 35/3 of the EC financial regulation are not met by such ministries, the centralised approach will be applied.
An international tender with pre-selection will be launched to contract the firm which will provide the TA team for Badakhshan province. The tender dossier to establish a service contract will be prepared, launched and processed by the EC Delegation. The tender will be following the normal centralised approach. The amount that will be allocated to the company already appointed under the FSP/WM 2003 to support the execution of additional works and services in Kunduz, Baghlan and Takhar, will be fixed following a negotiation between the company and the EC delegation in Afghanistan. This amount will be related to the amount of additional works that will be ultimately allocated to the Kunduz, Baghlan and Takhar provinces. Upon successful conclusion of the negotiations, a rider to the contract will be signed formalising the inclusion of the additional services.
For the food and agriculture information and policy unit component, a contribution agreement will be signed around July 2005 with FAO for the entire amount available based on a programme proposal to be submitted by FAO. FAO will work in close collaboration with the MAAH and the EC delegation will monitor the project implementation.
7.3 Appropriate technology
Programme activities will in general be implemented with appropriate technologies. The irrigation rehabilitation works apportionment structures and water control devices will rely heavily on the application of labour based methodologies. A special training course will be conducted to familiarise stakeholders with the management, supervision and of quality control of construction works carried out this way. Women and minorities will have a major role to play particularly with regard to the implementation of the conservation measures and forestry components in the upper catchments.
7.4 Timeframe, budget and financing plan
The period of execution of the financing agreement shall commence on the entry into force of the financing agreement and end by 30/12/2012. This period of execution shall comprise two phases: an operational implementation phase, which shall commence on the entry into force of the financing agreement and end by 30/12/2010. As from this date shall commence the closure phase, which shall end by 30/12/2012. Contracts implementing the financing agreement shall be signed by / /2007 at the latest. That deadline may not be extended.
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INDICATIVE PROGRAMME BUDGET Items Amount in € 2004 2005 TOTAL 1.Technical assistance for the irrigation & water 4,850,000 0 4,850,000 management component 2. Provision of equipment and office 700,000 0 700,000 rehabilitation under the irrigation & water management component 3. Investment support for water catchments, 14,000,000 7,000,000 21,000,000 irrigation schemes, river training 4.Audits, evaluations, project preparation, etc. 450,000 0 450,000 5. Contribution agreement with FAO for the 0 3,000,000 3,000,000 support to the Food and Agriculture Information and Policy Unit of the MAAH TOTAL 20,00,000 10,000,000 30,000,000
7.5 Special conditions and accompanying measures to be taken by the government For the irrigation and water management component the executing agencies (MIWRE, MAAH) will provide the programme with sufficient office space and technically competent counterpart staff in sufficient number. The Government will exempt all programme related imports from national taxes and duties and grant to the TA consultants expatriate staff, and their families employed under the programme, benefits, privileges and exemptions no less favourable than those granted to expatriates under other bilateral or multilateral technical co-operation arrangements.
7.6 Monitoring arrangements and follow-up
A Monitoring and Evaluation (M&E) process shall keep track of programme performance and provide reports to the various management committees. Using development indicators defined in the programme logframe, progress will be regularly tracked and evaluated. The M&E procedures will be designed and used to maintain a close watch on progress and identify any constraints or problems arising during the programme implementation. M&E summaries will be included in the quarterly programme reports and regularly scrutinised by the programme Management and the programme Steering Committees.
In addition, the food security Experts in the EC Delegation will regularly monitor progress. The programme may also be included in the monitoring arrangement presently in place and being administrated by the Evaluation Unit of EuropeAid.
7.7 Reviews, evaluations, audits procedures and reports
For the irrigation and water management component, progress on the programme will be regularly tracked and reported to the programme steering committee. The main reporting tool will be the regular reports prepared by the TA consultants with the MIWRE and MAAH. The report will contain an up-to-date activity schedule, summaries of key milestones, details of any constraints, staffing levels, procurement expenditures and financial statement including for the consultancy firm contract and a
14 AIDCO/543/04-EN Orig. description of general progress. The reports will also contain an M&E update using verifiable measurement indicators and highlighting any new or unforeseen risks or altered assumptions. They will be presented to the programme steering committee and form the meeting agenda together with the relevant annual work plan.
The reports shall be prepared in collaboration with the MIWRE, MAAH and MRRD as appropriate. Approval by the programme steering committee of the reports will appear in the minutes and constitute acceptance (or not) of performance. The progress reports will include a specific section dealing with the contribution of the TA to the Amu Darya RBA resolutions and planning progress on issues effecting the sustainable management of the basin.
In line with normal EC operating rules the programme component will be audited yearly. This external audit will be carried out by external auditors and funded by means allocated in the programme for that purpose. In additional there will be a similarly funded mid-term and final programme evaluation
C SUSTAINABILITY
8. Measures ensuring sustainability
8.1 Ownership by beneficiaries
All irrigation & water management programme’s activities will be planned and executed in partnership with the beneficiaries using a participatory approach. Benefiting communities will be requested to establish partnerships with MIWRE or MAAH by specifying what will be their contribution in terms of labour, access, land, security, participation, etc. Communities must also demonstrate a willingness to resolve water management and soil erosion problems and land disputes. This will not only promote a sense of community ownership but also ensure a good basis for sustainability.
Regarding the Food and Agriculture Information and Policy Unit programme component, ownership will be guaranteed by promoting the leadership of MAAH in the project implementation and by making sure that the capacity building needs are fully met.
8.2 Cross-sectoral sustainability
The programme is multi sectoral and will engage a number of stakeholders at various levels, e.g. the line ministries, rural communities, existing rural organisations, NGOs, private sector consultants and contractors. This will ensure a coherent approach able to address coherently the relevant sub-sectors of the programme (water management, infrastructure rehabilitation and other measures)
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By supporting the government River Basin Management policy, the programme will improve people’s livelihoods while in the same time promoting sound environmental practices. In doing this, it is expected to stop further environmental degradation in the region and improve the sustainability of peoples production systems and livelihoods.
Increased food production through rehabilitated/improved irrigation assets and the introduction of better water management systems will improve the situation of women and ethnic minorities since many farming activities fall to them. Women are traditionally responsible for caring for the nutritional needs of the family and any improvements in agricultural output will benefit them directly.
8.3 National policy measures
As indicated in section 2.2, a Sectoral Policy & Strategy Framework for the rehabilitation and development of agriculture and natural resources in Afghanistan was recently approved by the ATA. The document promotes a river basin integrated and management-based approach. This policy framework is being further developed under a Strategic Policy Framework for the water sector that provides an ideal policy environment for the sustainability of the irrigation & water management programme component.
Similarly, the fact that the establishment of national poverty & vulnerability surveillance systems is recognised as a key national priority in the National Development Budget is a firm guarantee that the relevant programme component is fully compatible with the national priorities and will thus benefit from the necessary policy and legal support whenever required.
8.4 Institutional and management capacity
The national public and private sectors have been severely weakened by more than 20 years of war and civil strife. The lack of qualified staff within the ministries is one of the major constraints that most of the projects to be executed jointly with the ATA currently face in Afghanistan. Therefore, it is recognised that capacity building of MIWRE and MAAH staff in undertaking their new core functions is at a very initial stage. Therefore the programme will put emphasis on capacity building measures targeting the two departments both at central and provincial levels. Assistance will also be provided to the MAAH under the Food and Agriculture Information and Policy Unit programme component.
Finally the fair security conditions in the targeted provinces (primarily Badakhshan and secondarily Kunduz, Baghklan and Takhar) constitute a guarantee for the social sustainability of the programme.
8.5 Economic and financial sustainability
The Programme will contribute to achieving the Afghan Government’s development objective of rural asset rehabilitation, the creation of secure livelihoods and food security. With sustainable river basin water management and effective irrigation system management agricultural production will be increased and economic activities expanded. This will be achieved through selected infrastructure rehabilitation works and upper catchments conservation initiatives.
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A realistic assessment of the economic and financial feasibility of the activities to be undertaken under the irrigation & water management programme component is extremely difficult to be conducted due to the lack of standard surveys and reliable socio-economic data both at national and provincial levels. At this stage, it is difficult to go beyond what has been detailed in section 6.3. However a number of economic studies and appraisals have been identified to ensure that the programme is built on firm technical basis.
D PROPOSAL FOR A COMMISSION DECISION
The Commission, acting in behalf of the European Community proposes to make available to Afghanistan in the framework of the 2004/2005 food aid and food security programme a financial allocation worth € 20 million under the 2004 budget. Subject to budgetary availability a further € 10 million will be decided from the 2005 budget.
To maximise flexibility and effectiveness in addressing beneficiaries’ needs, the Commission services are authorised to adjust the breakdown of operations approved under this decision. Adjustments shall remain within the limits of the maximum global amount
Annexes:
1) Logical Framework
2) Draft transmission letter to the Afghanis authority
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EUROPEAN COMMISSION EuropeAid Co-operation Office
Horizontal operations and LRRD Food security and thematic support
Annexes
1) Logical Framework
2) Draft transmission letter to the Afghanis authority
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Annex 1: Logical framework
Item Source of Assumptions Intervention Logic Objectively Verifiable Indicators of Achievement verification
Sustainable national reconciliation, State of control of ATA in intervention provinces Political and Overall political Overall respect of the right of law and economic Rate of law enforcement economic situation is not Objective recovery of Afghanistan is achieved. Growth rate of the economy reports deteriorating Purpose Improved availability and access to Regularity of information available on food security and its Vulnerability appropriate food degree of exploitation assessment reports Decrease of food vulnerable cases in intervention areas Evolution of nutritional situation of poorest sections of population 1. The sustainable irrigation water supply ◦Number (min 14 in Badakhshan) of irrigation schemes Project to communities and the functioning and rehabilitated and improved progress MIWRE and MAAH, appropriate management of the destroyed ◦Percent increase (15% min) in the major crops’ yields. reports continue their public and/or damaged irrigation systems is ◦Rate of mitigation of the effects of high flow events on the administration assured. rehabilitated intakes. Project reform and upgrade ◦Number of schemes under community management (min progress their salary grid, 14 in Badakhshan). reports ◦Percent reduction (50% min) of occurrence of conflicts over water distribution modalities. Publications Expected Water users ◦Hectares (12,000 min) of hill slopes protected against produced by results erosion. the assessment community willing to ◦Hectares of hill slopes gazetted for grazing and farming system resolve mismanagement limitations under RBA. ◦Number of trees (poplar and the like) planted in agro- problems, forestry project. Private sector able to ◦Hectares of re-generated existing pistachio plantation on bid on EC works hill slopes. tender ◦Occurrence of disastrous floods.
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2. MAAH provides accurate and timely Number of national experts available to provide Project report MAAH, continue information on food production, markets information according to international standards by end their public Metorological situation and other agricultural topics for 2008. administration bulletin improved policy and programming Number of meteorological information bulletin produced reform and upgrade Number of Crops yields forecast produced and Crops their salary grid, disseminated assessment
Number of programme designed or policy reformed due to reports results produced Office and transport facilities, technical equipment Policy papers provided to MAAH
Activities 1.1 Community mobilization on social MEANS Costs water management and upstream water Technical assistance : € 3,850,000 catchments regeneration Provision of equipment and office rehabilitation 1.2 Provision of training courses to Investment support for water catchments, irrigation € 700,000 MIWRE/MAAH and establishment of schemes, river training € 21,000,000 RBA Contribution agreement with FAO for the support to the 1.3 River training works to protect the Food and Agriculture Information and Policy Unit of the rehabilitated infrastructure (spurs, MAAH embankment, bank protection, check Audits, evaluations, project preparation, etc € 3,000,000 dams). 1.4 Execution of anti-erosion soil and water conservation works, € 450,000 1.5 Rehabilitation and improvement works in the irrigation schemes 2.1 provision of training to MAAH 2.2 review and improve methodology 2.3 coordinate with NSS 2.4 promote Government data sharing and use for improved policy planning
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Annex 2: Draft transmission letter to Afghanis authorities EUROPEAN COMMISSION EuropeAid Co-operation Office
Horizontal operations and LRRD Director
Brussels, AIDCO/F5(2004)
Your Excellency,
I have the honour of informing you that the European Commission, acting on behalf of the European Community, decided on , to provide from its 2004 budget an allocation of € 20 million for a programme to increase food security in Afghanistan. This allocation constitutes the first annual installment of a Commission Programme intending to provide EURO 30 million of support over a two-year period in favour of the Afghanistan, under the reserve that the budgetary funds are available. Details of the second instalment will be communicated to your Government in a subsequent Financing Agreement during 2005. Enclosed with this letter you will find the Financing Agreement (no. 2004/ ) which defines the general and specific conditions governing the implementation of this Food Security Programme in favour of Afghanistan. You will also find enclosed the general conditions of cooperation between the European Community and the Afghan Government (annex 1). I would be grateful if you could confirm the agreement of your government to respect these conditions, by signing all three copies of the Financing Agreement, and returning two copies to me. In order to ensure a timely implementation of the programme, I sincerely hope that this confirmation can be provided as soon as possible, but in any event, within four weeks of the receipt of this letter.
Yours sincerely
Francesco de Angelis
H.E. Ashraf GHANI Minister of finance Kabul
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