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Appraisal Report AFRICAN DEVELOPMENT FUND Public Disclosure authorized Public Disclosure CHAD FEASIBILITY STUDY FOR THE DEVELOPMENT OF 135 000 HA OF IRRIGATION SCHEMES Public Disclosure authorized Public Disclosure APPRAISAL REPORT RDGC/AHAI October 2018 Translated Document TABLE OF CONTENTS Currency Equivalents, Fiscal Year, Weights and Measures, Acronyms and Abbreviations, Project Brief, Project Executive Summary, Results-Based Logical Framework, Project Implementation Schedule ……………………………………………………………………………………………………………..…i - viii I – Strategic Thrust and Rationale ..................................................................................... 1 1.1. Project Linkages with Country Strategy and Objectives ................................................ 1 1.2. Rationale for Bank Involvement................................................................................. 1 1.3. Aid Coordination ..................................................................................................... 2 II – Study Description ........................................................................................................ 3 2.1. Prposed studies ........................................................................................................ 3 2.2. Project components .................................................................................................. 4 2.3. Project Type ........................................................................................................... 5 2.4. Project Cost and Financing Arrangements ................................................................... 5 2.5. Project impact Area .................................................................................................. 6 2.6. Participatory Approach to Project Identification, Design and Implementation… … .......... 6 2.7. Bank Group Experience and Lessons Reflected in Project Design .................................. 7 2.8. Key Performance Indicators ...................................................................................... 7 III – Project Feasibility ....................................................................................................... 7 3.1. Economic and Financial Performance ......................................................................... 7 3.2. Environmental and Social Impact ............................................................................. 7 IV –Implementation ............................................................................................................ 8 4.1. Implementation Arrangements ................................................................................... 8 4.2. Procurements Arrangements ...................................................................................... 8 4.3. Financial Management and Disbursement Arrangements ..................................... 10 4.4. Gorvernance ........................................................................................................ 10 4.5. Sustainability ......................................................................................................... 11 4.6. Risk Management .................................................................................................. 11 4.7. Knowledge Building ............................................................................................... 11 V – Legal Framework ....................................................................................................... 11 5.1. Legal Instrument................................................................................................... 11 5.2. Conditions for Bank Intervention .................................................................................. 11 5.3. Compliance with Bank Policies................................................................................ 12 VI – RECOMMENDATION ............................................................................................ 12 Annex I : Financing of the Study for the Development of 135 000 HA project, exceeding 90% of the total cost of the Project Annex II : Comparative Socio-Economic Indicators of Chad Annex III : AfDB Active portfolio as at 31May 2018 Annex IV : Bank Group Active Portfolio as at 19 September 2018 Annex V : Detailed Study Costs (in EUR) Annex VI: Procurement Plan for Recruitment of Consultant Annex VII : Terms of Reference of the Study Annex VIII: Map of the Project Area Currency Equivalents October 2018 UA 1 = XAF 790,62 UA 1 = USD 1.40 UA 1 = EUR 1,21 USD1 = 566,65 XAF EUR 1 = XAF 655.957 Fiscal Year 1 January to 31 December 1 metric tonne = 2.204 pounds 1 kilogramme (kg) = 2.20 pounds 1 metre (m) = 3.28 feet 1 millimetre (mm) = 0.03937 inch 1 kilometre (km) = 0.62 mile 1 hectare (ha) = 2.471 acres i Acronyms and Abbreviations AFD French Development Agency AfDB African Development Bank AGPM General Procurement Notice AMI Notice of Expression of Interest ANADER National Agency for Rural Development CSP Country Strategy Paper (AfDB) ESIA Environmental and Social Impact Assessment ESMP Environmental and Social Management Plan EVST Structural Vulnerability Survey in Chad GDP Gross Domestic Product GEF Global Environment Facility IsDB Islamic Development Bank PND National Development Programme ONDR National Rural Development Authority P2RS Programme for Building Resilience to Food and Nutritional Insecurity in the Sahel PAFICOT Cotton Sector Support Project (AfDB) RAPPAR Resettlement Action Plan PIRPT Rural, Pastoral and Transhumance Infrastructure Project PNSA National Food Security Programme PPM Procurement Plan PQDAT Five-Year Agricultural Development Plan for Chad PRESIBALT Programme to Develop and Strengthen the Resilience of Socio-Ecological Systems in the Lake Chad Basin PRODEBALT Lake Chad Basin Sustainable Development Programme PRT Chad’s Resilience Priorities PVERS Surface Runoff Water Enhancement Project SDCCS Swiss Agency for Development and Cooperation Services SDA Agricultural Development Master Plan SDEA Water and Sanitation Master Plan SESA Strategic Environmental and Social Assessment SII (2iS) Sahel Irrigation Initiative SODELAC Société de Développement du Lac (Chad) TFP Technical and Financial Partners TOR Terms of Reference EU European Union ii Project Brief Client Information DONEE: Republic of Chad EXECUTING AGENCY: Directorate of Rural Engineering and Agricultural Water (DGRHA), at the Ministry of Production, Irrigation and Agricultural Equipment Financing Plan Amount Source Instrument (in UA million) ADB/ADF 0.800 Grant TOTAL COST 0.800 Key AfDB Financing Information Grant Currency Unit of Account (UA) FRR, VAN (baseline scenario) Not applicable ERR (Baseline scenario) Not applicable *if applicable Timeframe – Main Milestones (expected) Concept Note Approval Not applicable Project Approval 24 October 2018 Effectiveness December 2018 Last Disbursement October 2020 Completion December 2020 iii PROJECT EXECUTIVE SUMMARY Project Overview: A landlocked Central African country (1,284,000 km² and 14.45 million inhabitants), Chad has significant natural resources, including 39 million hectares of arable land, 84 million hectares of natural pastures and 23.3 million hectares of forests, 7 million ha for fish farming, about 113 million head of livestock of all species (cattle, sheep, goats, camels, etc.) and significant groundwater and surface water resources, with an annual volume varying between 263 and 455 billion m3. However, Chad is experiencing near-chronic food and nutritional insecurity: 21% of the population faces food insecurity and acute malnutrition that have reached the critical threshold of 15% in most regions (PNSA, February 2014). To address this problem, the Chadian Government is focusing on developing the irrigated farming subsector to leverage the country's significant irrigable land potential (nearly 5.6 million hectares of irrigable land, including 335,000 hectares that is easily irrigable). Government's request to the Bank to assist it in preparing a feasibility study for the development of 200,000 ha of irrigated land is part of this strategy. In response to the request, the Bank fielded a mission in August 2016 to prepare the terms of reference for the study. During the mission, contacts were made with the main stakeholders in the agricultural sector, and particularly in the irrigated farming subsector. Three irrigation sites located about 100 km North of N'Djamena were visited, and interviews were held with the farmers and their supervision services. This project will support the preparation of a programme for irrigation development over an area of 135,000 ha. It will be a project study to establish feasibility and prepare detailed sketches for the development of an area of approximately 18,000 ha in the short and medium term. A dossier will be prepared at the end of the studies and submitted to the Government, which will be the basis for the organisation of a donors’ round table to mobilise resources for financing the first tranche of the 18,000 ha priority sites. The study project will cover eleven (11) provinces (potential irrigation development hubs) dispersed nationwide. Its total cost is estimated at UA 800,000 (EUR 952, 000), net of taxes and duties. This cost comprises UA 546,351 (EUR 650,017) in foreign exchange and UA 253,649 (EUR 301,983) in local currency. It includes provisions for physical contingencies and price escalation, estimated at an average of 4% and 3%, respectively. The study will be conducted in three phases over a cumulative period
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