C-41 Tc C)/ - /S 6Va Documentof the World Bank

/C-41 tc C)/ - /s 6vA Documentof The World Bank

FOR OFFICIAL USE ONLY

Public Disclosure Authorized ReportNo. 12253-BEN

STAFF APPRAISALREPORT

REPUBLIC OF BENIN Public Disclosure Authorized

COMMNITY-BASEDFOOD SECURITYPROJECT

MARCH9, 1994 Public Disclosure Authorized

'1vpTe:

Agriculture Operations Occidental and Central Africa Department Public Disclosure Authorized

This dou.ment has a restricted distribution and may be used by recipients only In the performnce of their official dutise Its contents may not otherwise be disdosed without World Bank authorlizaon. CRRENCY EQIJ'VALENTS

Currency Unit: CFA Franc (CFAF) US$1 = CFAF 575' V9EIGHTSAND MEASURES Metric System FISCALYAfR January 1 - December 31 ABBREVIATIONSAND ACRONYMS AFVP Associationfrancaise des volontaires du progrbs APV Agentpolyvalent de vtdgarmeation Polyvalantextension agent CARDER Centred'ection r6gionale et deddveoppement rural RegionalAction and Rural Development Center CFO Caissefranaise do d6veloppernent(ex CCCE) CIRAPIP Centredlnfonatdon de rechercheet d'action pourIs promotiondes initiativespaysennes CLCAM Colss,locale de cr6dit agrio mutual RuralSavings and Loan Cooperate CNCA Caissenationale de ordt agricole NationalAgricultural Credit Bank CNW CommunityNutrition Worker CONGAB Counciof Non-GovernrnentalOrganizations CREDESA Centrede recherchepour oe d6veloppernentet Ia sant6 DANA Directionde i'alamentadonet de I nutritionappllqu6ees Foodand Applied Nutriton Directorate DANIDA DanishCooperaton Agency FAI1 LocalInitative. SupportFund FAO Foodand Agriculture Organization FAOXCP FAO-WorldBank Cooperative Program GERAM Group.sd'expetise et dingeniederural pourl'auto-promotion du mondepaysan GRAPAD Groupsde reoheroheet d'aofon pourla promoidonde l'agdouitur. at du d6veloppernent GTZ GermanTechnical Coopertion Agency GV GroupementviWgeci. V'ilagerGroup INSAE Institut nationaldee stadstiques at deI'analyVe doonomique MDR Ministeredu d6veloppernentrural Minis%yof ruraldevelopment MMU Managementand Monitoring Unit MRJC Mouvementrural deIa junesse chretlenne NGO Non-governmentalorganization GCSD Organisationcanadienne pour Ia solidariteet l d6veloppement ONASA Oftice nationald'appui A la s6curiti alimntaira National Bureau for Food Security Support ONC Office nationaldes cireales NadonalCereals Board SAD ServiceaUemandd d6veloppernent SVA Servicedes volontairesaslemnds UNICEF UnitedNadons Childrn's Fund UNS NationalUniversity of eanin VED Volontaireseuropeens de d6velopperent WFP Wold FoodProgram

1/ Exchange rate as of February 1994. The parity of the CFAF with the French Franc, previously fixed at 50/1 has been realigned to 100/1 in January 12, 1994. FOR OFFCAL USE ONLY

REPUBLIC OF BENE

COmmiUNITT-ASED zOOD sECURITY PRnOaC 8TAFF APPRAISAL REPORT

TA1 OF CONTTS

DOCUMYNIS CONTAINED IN TME PROJEC PILE Li CREDIT AMNPR8OJE SuISRY v

I. INRODUCIXON 1

A. Physical Characteristics 1 B. Sociaeconomic situation 1 C. Project Origin 2 II. TEM AGRICULTURE 8ECTOR AND FOOD SECUPIM 2 A. Agricultural Production 2 so Food supply 3 C. Food Stability 4 D. Access to Food and Malautrition 6 so Institutions Dealing with Food Security 8 F. Food Security Interventions 10 G. Food Security Strategy 11 S. Role of IDA 12 I Previous XDA Experience 13 J. Data Base and Xdentification of Areas at Food Security Risk 14

A. Project Rationale 1S B. Objectives 1S C. Summary Project Description 16 D. Detailed Features 16 a. Micro-projects 16 b , Community Nutrition Program 20 c Institution Building, Managesmet and Monitoring 21 IV. PROJECT COSTS AND PINANCING 22 A. Cost Estimate 22 B Financing 23 C. Procurement 24 D. Disbursement 26 B. Accounts and Audit 27

This report is based on the findings of the apraisal mission carried out in Beninin June 1993, consisting of Mr. Adolfo Brisxi (mission leader and agricultural economist), Mr. Thierry Brun (food security/nutrition specialist), Mr. Abdou Salem Drabo (community development and NGO Advisor), Mrs. Sylvie Tillier (econo mist), Mr. Abdoulays Toure (agronomist), Kr. Torben Lindqvist (DJIXDA, economist), Ms * enriette Bonnevie (DaMIDA consultant). Fbrther assistance was provided by Ms. Bhagwanti Kushalani (operations assistant). The report benefited fron the support of Ms. Betty Eanan (project officer). Messrs. EarrY Walters (AFTER) and Cadman Mills (AF4AG) are the peers reviewers. Mr. olivier Lafourcade is the Department Director and Mr. Theodore Ekodo the Agriculture Division Chief . secretarial support was provided by Ms. andrea VUsques.

This documentbas a resticteddistnrbution and may be usedby recipientonly in theper=nce of teir officialduties Its contentsmay rot otherwisebe disclosodvdthout World Bak authodzaton. Li

V. PROJECT ORGANZATION ANDMAaOBMENT 28 A. Organization and Managoment 28 B. Cost Recovery 31 C. Monitoring, Evaluation &ud Reporting 32 VI. BENEFITS AND RISKS 34 a. Expected Benefits 34 B. FinancLal Implications for Goverment 35 C. Bnvironmental impact 35 D. Risks 35 VII. ALREyEMNTS AND RECOM3 NDATiONS 36

1* National food sec xity policy and institutions 2. Minutes of the workshop on micro-projects implemetation 3. Methodology for the identification of the areas at risk 4. Micro-rrojects implementation 5. Project benefits - Micro-projects financial feasibility 6. Community nutrition program 7. Monitoring and evaluation a. Project Costs 9. Implementation schedule 10. Disbursement schedule 11. Supervision schedule

Map ii

REPUBLIC OF BENIZ

COMMUNITY-BASEDFOOD SECURITY PROJECT

Documents Contained in the Project File

Workino Documents 1. Project Implementation Manual

2. Food and Nutrition Sap in Benin, Identification of Areas at Risk (Pilot Food Security Project, May 1992).

3. Pilot Food Security Project, Preparation Report (FAO/CP, October 1989). 4. Pilot Food Security Project, Evaluation Report (FAO/CP, July 1992) S. Community-based Food Security Project, Preparation report (FAO/CP January 1993)

6. Finalization of NOOs' intervention proposals (T. Perreau, April 1993) v

REPUBLIC OF EN

COJfhNITrY-BASD FOOD OSEcRTlY PROJeCT

CREDIT AND PROJECt SUU1 R

Borrows t Republic of Benin Beneficiaries: Linistry of Rural Development (MMD) Amlount2 8DR 7.1 mllion (US$9.7 mllion equivelent) Torlogs Standar IDA tems with 40 year maturity and a 10 year grace poriod Project DescriLtions Over a five year porlod, the project would assLst the Government in improvLng the food security and nutrition standards of the most vulnerable population groups of the country. The project would focus on poverty allevLation in prc-Ldentified problem-areas (Osous-pr6fectures"), however, the situatLon would be regularly monitored and the suope of the projeat adapted. Further targeting would be carried out in those areas to ensure that assLstance be provided to the most disadvantaged segments of the rural population. The approach will build upon specific situations and constraints, aiming at their solutLon through the empowerment of local communities, with particular emphadsi on women groups.* Selected NGOs would help rural groups design and implement micro-projects aimed at developing sustaliable income generating actLvlties, employmet opportunLtLes and improve theLr nutritional standards. Moos would help raise group interest and participation in the implementation of development actLvltLes and help the community access sources of financing and support. The project would comprise three major componentst a) local commuity support for preparatLon and implementation of mLcro- projects, including L) income generating activities, small agricultural projects and lLvestock raising, food processing, small trading and marketing; 1$) socio-economic activities, support to storage, land development and rural works (bottom- land development, anti-erosica techniques), village tree nurseries; iii) micro-infrastructure such as the rehabilitation of village access and feeder roads and of market places, small structures (bridges, fords), village wells, livestock watering points; b) nutrition activities, through local community nutrition agents supportedby Noos, for the improvemmet of the nutritional status of womnm and children in the target populations and implementation of a beneficiary assessment; c) institution strengtheniag to support the planning and monitoring of the nutrition and food security situation, and management, coordination and support of project activities in the field. vi

Estimated Prolect Cost and Financina Plan (US$ million):

Components Local Foreign Total of Base ______~~~~~~~costs cro-projects 3.7 4.3 8.0 54 Community nutritdon program 0.8 1.3 2.1 '.4 Policy, planning, monitoring and 1.s 1.4 2.9 19 managenent _ . . ._. Project preparat(pilot phase) 1/ 1.1 0.8 1.9 13 Total Base Costs 7.1 7.8 14.9 100 Physical Contingencies 0.3 0.6 0.9 S F dnancialContingencies 2.8 0.S 3.3 22 TOTAL PROJECT COSTS 10.2 8.9 19.1 127 I/ financed through PPF, DANIDAgrant & NGOIGOB Contribution _inancing Plan Local Foreign Total % of Base Costs -UB---- US$ million ----- IDA 4.3 5.4 9.7 51 DANIDA 3.3 1.6 4.9 25 WFP 0.3 0.4 0.7 4 NOos 0.8 1.5 2.3 12 Government 0.6 0.6 3 Beneficiaries 0.9 0.9- Total 10.2 8.4 19.1 100

EstimatedDisbursements of IDA Credit

FY95 FY96 FY97 FY98 FY99 FY2000 …------…------US$ million ------Annual 2.1 1.3 1.6 2.0 1.6 1.1 Cumulative 2.1 3.4 5.0 7.0 8.6 9.7 Benefits and Risks: The principal benefits expected from the project would be to alleviate poverty and reduce food insecurity and malnutrition in the targeted sites of intervention. Most benefits would have a direct on-the-ground visibility. Income generating and socio-economic activities would reactivate local initiatives and economies, enhance food supply, smooth out before-harvest shortages, increase producer income and increase productionand consumption at the village level. Small infrastructure and better access to enclave areas would facilitatevillage integrationinto regional economies. Particular focus would be in direction of group activitiesof women, who are already the main actors in crop production, food processing, marketing and nutrition. Reduction of labor constraints of women aund interventions in their favor for better education and vii

increased attention to family and particularly children feeding would improve family nutritional status and would generally set zhe basis for a more responsive environuent. The project would intervene in about 20 Osous-pr6fectures*and 30 "communes*,and field activitieswould directly reach some 15,000 rural households or about 100,000 people in various rural areas with diversefeatures. Furtherore, small infrastructureworks are expectedto have a broader impactand expandbenefits to about 300,000 people. The coommunitynutrition program would directly monitor the growth of about 48,000 children up to age 5 and about 20,000 lactating or pregnant women. Through these interventions the aalnutrition rates in project areas are expected to be reduced from 30% to about 21% (or a reduction of about 30%). In addition to the direct benefits to targeted populations, the project would contribute tos a) a better knowledge, description and localixation of food insecurity situations; b) the development of hands-on and replicable experience on ways and tools to address identified constraints at the local commaunity level; c) the monltoring and evaluation of food socurity indicators and a permnent definition, updating and implementation of food security strategies; and d) the preparation of a natlonal nutrition strategy. The institutional approach adopted by the project would develop partnership and complementarity between public services and MOOs ia the support of local coAmuities. Community orgaulnation is indispensable for the implementatlon of certain activities which individuals could not undertake without mutual help. Within such framework, collaboration between Noos and extension services would develop new opportunities for better addressing specific problems and in promoting community-based initiatives. The pilot phase has considerably helped in better understanding and addressing potential risks in project implementation which may stem froms a) changes in attltude and relationship, or lack of coordination and understanding between Noos and the Government deriving from the relative Lsolationof EGOs in the implementationof their activitiesor in possible excessLve Government interference in project activities; thls will be minisized by i) setting-up mechanisms of collaboratlon between rural communities,NOOs, public and private services,and local authorities,in micro-projects preparation and implementation; ii) maintaining a project management unit with people from the private sector; and iLi) promoting the dialogue between Government and NOOs through regular coordination maetings at the central level for maximum transparency and developLng the basis for further opportunities of collaboration and partnership; b) the emergence of opportunistic NG0s with different agendas from those of the beneficiaries and possible managerial and technical weaknesses of R0Is deriving from their relative inexperience and difficulty in complying with required administrative and finanial procedures and disciplino; this risk would be mitigated by i) the strengthening and enhancement of the Management and Monitoring Unit which would now be decentralized and would provide technical, financial and administrative support to the NGOs in the field; ii) the establishment of an Implementation Manual defining the procedures and steps to be followed for micro-project preparation and implementation to be discussed and agreed upon with the Government and the NGOs before project starts; and iii) the pre-selection and training of quallfied GOOs(already initiated under the pilot phase) according to criteria of experleace, acquaintance with the zone and the communitles, demonstrated capability and commitment in sponsoring the activities of local groups; c) the slow implementationof the cost recovery system due to the newness of the approach, slack monitoring and insufficient appraisal of micro-project feasibility; elements of improvement for better sustainability, compared to the pilot phase, have been Litroduced in project design in terms of i) contractual arrangements between the MOOand the group; ii) better control and sonitoring of reimbursed fundu including default clauses with possible excluslon of the group and/or the Noo from further support; iii) ensuring beneficiaries' commitment to the investment viii

through their initial contribution and participation and by permitting rotation of recovered funds at the local level for the same or another activity; and iv) farmer/group training and outreach to sensitize and explain the mechanisms of project appraisal and cost recovery; d) possible institutional conflicts in the attribution of responsibility£or the coordination of nutrition activities,due to the number of agencies and 4izistries involved in nutrition interventions; this risk wll be mitigated by i) the financing of a national nutrition strategy to better define institutionsl role and national priorities; and 11) ensuring coordination of NGOs field intervention with existing decentralized structuresand activities. Internal Rate of Return: Not applicable Poverty Cateuorv: Program of Targeted Interventions Mas No. IBRD 2S996 URPUILxC OFr 3Th COMRZTY=-BASND FOOD SECURITI PROJECT

APPRA!SAL REPORT

1. IMNTRODUCTON

A. Phvuical characteristics 1.1 Benin has an area of 113,000 km2 ad a population of 4.9 million in 1991, 65% of whom live in ru:al areas. The population is icreasing at an average annual rate of about 3.2%. Its geographical distribution is very uneven. Population density varies from 340 inhabitants/krr in the wd6partement of Atlantique to about 14 inhabitants/ks' in Borgou. As a result, 63% of the population is concentrated on 12% of the land area. The urban population accounts for 35% of the total and is increasing at 4% a year (8 in Cotonou). Benin is divided into three main climatic zo8es; sub-equatorial in the south, with rainfall between 900 m and 1,500 m annually; Guinean-Sudanese in the center, with marked temperature variations and an average rainfall betvaen 1,000 mm and 1,200 mm/year; and semiarid Sudanese in the north, with rainfall of 900 mm to 1,100 mm/year and high evapo-transpitation. Plant cover is relatively uniform, in the form of a very degraded savannah woodland extending from the north of the country to some SO km from the coast. This savannah is interspersed in places with gazetted forests. Further south are residual forests, small areas of deciduous and semi-deciduous forest, oll palms on the sedimentary zomes and coconr.t trees along the coast. Soils are generally poor, mainly ferruginous. Bottom-lands have a higher agricultural poteutial, but are generally hard to work. B. Socioeconomic situation

1.2 The annual per capita income was about US$410 in 1992. * enin's principal resource is its arable land, which makes it potentially self-sufficient in food in overall terms while enabling it to produce cash crops such as cotton and palm oil as a source of foreign exchange. The primary sector accounts for about 40% of GDP, more than 70% of domestic exports and 75% of employment. The average annual rate of growth of agricultural production in the 1980-1988 period was 4.2%, and it continued to maintain itself at rates above the demographic growth thereafter. This performance, although remark0ble, was largely achieved through more extensive utilization of available land. The geographical configuration of Denin, together with the deep-water port of Cotonou and its relatively good road and rail network, allows it to provide transit services for landlocked countries to its north. The secondary sector accounts for about 12% of GDP, essentially in the fom of maufacturing, cement production and limited offshore oil resources. The tertiary sector basically consists of informal but vigorous trading activities.

1.3 Between 1983 and 1987 Benin's economy grew only slowly, partly as a result of a decline in trade and a collapse of the regional transit traffic, but more particularly as a consequence of the inefficiency and poor management of the productive sectors dominated by the State. In 1989 the Goverament introduced a program of economic reforms prepared with the assistance of the Bank and IMF. This program reflected a change in Benin's economic policies, the reduction of the State's role in the economy and promotion of private sector activities, a balanced management of public funds, and an improved balance of payment situation. A major external adustment was decided in January 1994 by the governments of all CFAP countries to devalue the FCFA to the french franc by 50%. Tbh strategic choices adopted by the Ministry of Rural Development (MDR) during the seminar on the strategy of the rural sector held in Cotonou in July 1990 and confirmed in a letter of development policy of May 1991, are in line with the - 2 - above objectives. These choices specitica:ly aim att a) increasing export revenues through improved conpetitiveness and crop diveruification; b) redefiiang the role of State while improving thb cost/effectiveness of its intervention; c) promoting poverty alleviation and food security; and d) preservig its environmentalpatrimony through a more sustainableuse of natural resources. C. Protect oriagi 1.4 An PAO/CP identification mission undertook in 1987 a first assessment of the food security situation with the objective of contributing to the elaboration of a food security strategy. A poverty alleviation and food security strategy paper was prepared by the Bank in 1989. The strategy led to the initiation in 1990 (under PPV financing) of pilot local interventions through XGOs, aimed at increasing revenues of the most disadvantaged segments of the rural population and improving their food security and nutritional status. Four international NWs2 intervened in five usous-pr6fectures" with two objectivest a) test the comparative advantage of X0O, to address food security issues at local community level; and b) 'generate and collect additional informazion to help better define areas and groups at food security risks. These operations constituted the experimental basis for a larger in scope project prepared by FAO/CP in November 1992 and appraised by IDA in June 1993.

U . TE- AGRICULMURESECTOR AND FWOODSECURITY A. Agriculturaloroduction 2.1 Food r production is relatl.ely dlverified and capable to moet leni's food needs. However, it is very uuevenly distributed over the country, and overall sufficiency bides important geographical differences and fluctuations froa one year to the next at the local level. Maise was mainly predomia in tlte southern departments, but has now also spread in the Borgou and Zou Departmentb, with a total production of 446,000 tons in 1991. Millet and sorghum are only grown in the Bxorgon and Atacora Departmets and account for an aggregate of 138,000 tons. Yams and cassava predominate in the North and in the South re spetively with a transition zone at the upper border of the zou Department and production figures of 1,150,000 tons and 1,000,000 tons. 8eans and groundnut are relatively spread with predominance in the North for groundnut. Production of beans is around 50,000 tons and of groundnut is 65,000 tons. In most cases food crops are grown in association, and yields are very unstable but remain low on average. Rice production is marginal, although its consumption is steadily increasiag, being met by imports. 2.2 Trends.apart from years of climatic accidents, food crop production is relatively steady. Production of staple food grows on average at rates comparable to or above population growth: maize 4%, sorghum/millet 5%, yams 4%. Important fluctuations occur for cassava, beans and groundnuts, but their average production stagnates. Agricultural growth results mainly from crops being expanded to the North of the country where land ia still available. In the south, population pressure and unadapted agricultural practices have led to soil over- exploitation, severe degradation of natural resources and a growiug imbalance between local supply and demand. 2-3 rash crops. Cotton cultivation has expanded rapidly in recent years to cover about 140,000 ha in 1991-92, for a total production of about 170,000 tons of seed cotton (fom 14,000 tons in 1981/82) and 70,000 tons of fiber. Yields are satisfactory (1,200 kg of seed cotton/ha), and the total area planted is still increasing, particularly in the North. Cotton constitutes a well

1/AFYP from France, Bva from Germany, OCSD from Canada, and the Peace Corp from the USA. The latter subsequently withdrew because of personnel problems. - 3 -

organized sub-sector, guaranteeing a floor price to producers, supplying inputs on credit, and processing and marketing the final product. Cotton production has substantially contributed to economic growth. Palm oil production continues to decline an a result of the aging of the plantations, a chronic water deficit that limits yields, declining profitability in relation to other crops and very low prices on an internattonal market domaiated by production from Asia. 2.4 Stockraisina,with about 1 millioncattle, 2 millionsmall ruminants and half a million hogs, accounts for one fifth of agricultural production (4% of CDP). About 7 million ha of available pasture are only partially usable in the absence of watering points. Three quarters of this area is in the northern provinces, where the low utilization of space gives rise to traditional extensive stockraising. Total neat productionis about 30,000 tons per year, along with some 43 million liters of milk, about 200 million eggs and 20,W00 tons of game. Potential animal production in northernBenin is high in terms of pastures, but is limited by poor management of surface water resources, archaic production systems and increasing competition from crops. Denin's fishino activities, with a production of about 40,000 tons per year, provide some 50% of animal protein r%'quire_aets. Lagoon catch accounts for two thirds of production. Per capita cons-r-ption has fallen by half in the last 25 years; production is still declining as a result of problems of lagoon salinity, siltation resulting from the deforestation of watersheds, and over-exploitation. 2.S Fuelwood consumption, currently estimated at 5.2 million tons, is increasing in line with the growth of the rural population; this has led to significant pockets of deforestation in some areas and to all-around uncontrolled exploitation. Wood is the principal source of fuel for at least 80% of the population. 2.6 Agri-gultural groduction systems vary according to agro-ecological Zones. Kowever, food crop production presents a number of characteristicssa) labor proe-tctivityand remueration are low (CPA 400 to 600/day),and the labor force is only partially utilixed; b) use of inputs is limited and soils bave been exploited without regard to sustainable management; c) yields are steadily low; d) subsistence agriculture prevail and attempts to establish market-ariented production enterprises have failed; e) this is also true for animal production, particularly cattle, with low labor productivity, few market-oriented enterprises and extensive production methods; and f) the commercialization system has limited stabilizing effect and results in high seasonal variability of food crops prices, which have otherwise steadily decreased in constant francs over the past 20 years. 2.7 Small-holdings predominate, along with traditional methods of land conveyance and allocation. Average farm size is about 1.7 ha for a seven-person family, the average ranging from 0.4 ba in the south, where only St of farms exceed 5 ha, to 12.7 ha in the north, with 20% of farms over 5 ha. Access to land is extrmely difficult in the south, where it is increasingly common for land to be sold and demographic pressure has led to fragmentation of the plots under the laws of inheritance and over-exploitation of agricultural resources. There has been no real improvemaet in production methods that would lead to a sustained increase in productivity. In the north, trrditional shifting slash and burn agricultural systems predominate; land is often negotiated and allocated in symbolic terms but the concession remains precarious and, in the absence of ownership recognition and access rights, the land tenure system fails to generate security. B. Food SUDD1 2.8 During the last ten years, domestic food production has met on average national demand. The supply of grains (maize, sorghum and millet), which represent between 40% to 60% of the household food intake, Is of about 110 kg/person/year. Tuber intake is of about 300 Kg/person/year. The Table below describes the domestic average staple food supply pattern in 1992, taking into account post-harvest losses, seeds and self-consumption.

Crops (tons) Production Losses & Self- Theoretical .______8______Seeds consumption surplus maise 446,000 89,000 210,000 (47%) 147,000 Sorghum/ 138,000 21,000 110,000 (80%) 6,700

millet ______I______Cassava 1,000,000 106,000 690,000 (65%) 265,000 Yamg 1,155,000 346,000 693,000 (60%) 115,000 Sources National Grain Board ONC) As such as 20% of the graia is lost after harvest in the South because of moist condltioans, pests, parasites and poor storage; losses on yams are also important. 2.9 Food Dorts are dominated by rice, wheat and wheat flour (in 1991 respectivoly 245,000 tons, 81,000 tons, and 46,000 tons). These products are re- exported to Nigerla,wilch declded to limit (and then ban in 1986), dlrect grain imports from the world market. Re-exportactlvitles have expanded conslderably since 1985, creating an important commercial corrldor to the Nlgerlan border and the developmeat of food import firms in Cotonou. Although such imports are not directly meant for the lwanin sarket, they represent a buffer stock which stabilizes rice price throughout the year. Such facility of access to rice and bread has a direct influence on keeping the price of domestic food products low. Food aidLi marginal and its impact on the overall food security strategy is mInor. in some cases (Japan)food aid is indirectly used for budgetary support. 2.10 Food exAort.although official figures are almost non-exlstent and the pemeability of the boundaries does not allow to account for food flows, regional trade is very important. Major variations occur and trade is particularly influenced by Nigerian policies which are of an overwhelming importance for Senils export capacity and food security strategy. Nigeria was in the past one of the main outlets for Benin's food production. The situation has progressively changed with the depreciation of the naira and the trend has reversed, with Nigerisa food competing on Bealens markets, particularly in southern urban areas. However, this trend is likely to change again after the recent devaluation of the CIAP, making lsninese products more competitive. 2.11 Exports of domestic products are officially almost no-existent. However, the monitoring of border trade and markets reveals that the informal sector is very active in marketing food crops in neighboring CPA countries. Studies suggestthat about 25,000 tons of maize, 12,000 tons of sorghum, 15,000 tons of yams and S,000 tons of "gari' are exported to Niger each year. Togo and Gabon are also occasional outlets for maize and yam chips (22,700 tons of yam chips to Gabon in 1991). C. Food stability 2.12 Although the NatS,nal Grain Board" (ONC) (para. 2.32) was until recently responsible for marketing, distribution, transformation and storage of domestic and imported grain, the private sector has always been, unofficially in the past and officially today, the main actor in food marketing. 2.13 The arket network is quite well integrated, with local markets at vlllage level, primary collection markets visited regularly by small itinerant merchants and secondary collection markets usually located in district urban centers or at important crossroads in rural areas where the products are grouped -5 - an distributed to torminal markets (Datokpa In Cotonou, noundjro in abomey, Porto Movo and Watitingou), which essentially sell to retailers and consumes. owever, ther are areas wLthin most departments which are extr_emly poorly supplied. Their commercal isolation is maLuly due to limited marketable surpluses, fraeta of supply and distancefrm major consumption centers. Markes prolferae saise and cotton are grow, while milet/sorghus (mostly for oa-farm consumption) and tuber (overproduced alost everywhere) do not seem to timulate the development of commercial networks. iaise, "garLi and to a lesser extend yams, are the core of the trading system and the main regulators of Benim food seaurLty. Although producer cooperatlves and groups have developed eosiderably ia cotton areas, they play a limited role in the marketLng of food products, which still remains of an indivldual and dispersed nature. 2.14 The ag:wrk Lisat organised on a family or ethnic basis at the local level. nhse primmary collectors vender a very valuable service to rural communities and are the flrst link between producers and traders. Differeat typs of merchants and brokeor are to be found to cmplete the functioning of the network untlc the urban consumer. Because Denis commercial system is largely lnforml in matur, in most cases there is no access to bank credit, and the system operates oan the basis of individual liquidity and rapid turnover of capital. Thus, most often small farme sell their output immediately after harvest at low pricos, seekLig for lquiditly. This can also result in serious pre-harvest shortages, the same farsers having to tur to the market to purchase food for their own needs at Ligb prices. Moreovr, by its private and purely comercial nature, the distribution system is oriented from the primary markets in rural areas to the urban consumr. Distribution from surplus to deficit rural areas suffers from liited comercial oortu s and from the cometition of urban demand. 2.15 Tere is lLttle iaformation on the storaa sLtuation ia rural areas. it is believed to be genrally poor and mostly contituted by raisd and enclosed adobe granaries or rough stores. Storage mainly concerns grains since tubers can be stored in the field for about oe year. in the south, storage is more difficult due to the higher relative humity and the exLstence of a shorter and random dry season Te importance of post-harvest losses is also an Indication of the storage constraints at the farm loel. he lack of rural credit has often iapeded the initial counstLtution and replenishment of workLng capital. Ts situation contributes to the very high fluctuation supply and prices during the year. 2-16 Data on merchant storage is seldom available but considered to be marginal (ezcept for rice). Btorage capacity at the secondary market level is mnor and poorly maintained, with a high turnover (not more than one mnth) and almost so reguJlatory effect. 2.17 Pubic storage does not enter In the goeral food socurity plcture. OnC has a storage capaecty of 37,000 tons whichis Luue'ble because its bulk storage tye i pr t for local commercial practices and elimatic cdti . At preet, these storage facilities distributed throughout the country are empty, with the exception of som 11,000 tons in Cotonou leased to a commercial firm. 2.118 nsmrtfacilLties play an essential role in the functioning of the marketing system and food security strategy. Th tranort network determines the fair distribution of the domestic supply over the country and the arbitration betwee deficit and surplus areas. only about 1,200 km are paved roads out of a total netork of about 15,500 km, consiating of 3,400 km of classLfied roads, 10,350 km of rral roads, and aroud 1,800 km of urban roads. The backbone of the national road network is composed of two north-south axes that link Niger and Burkina Iaso to Cotonou, plus the coastal Togo-Nigera highway. 2he rural network mries 2,600 km of rehabiltated earth roads, and 7,700 km of feeder roads. The latter are generlly Inadequate and often Impassable during the rainy season. - 6 -

Lack of maintename represents a constant threat to the regular use of feeder roads and represents a major barrier to rural access. fbis situation is a severe constraint on food trade and often leads to the isolation of certain areas, the department of the Atacora being the most affected. 2his is reflected in the transport cost patterns in rural areas, with unit prices varying from one to nine fold throughout the country. With the on-going restructuring of the regional agricultural centers (CANDEMs, para. 2.30), about 90% of the road transport sector will be in private hands, only the cotton marketing company (SONAPRA) still possessing a transport fleet. 2he only railway line for freight transport links Parakou with Cotonou. 2.19 Food rocessin. is more important for tuber than for grains. it is an Important traditional activity mainly undertaken by women who often also control the marketing process of the final product. "Gari," tapioca" and chips are the main products fros cassava processing; chips from yams; and *akassas from maize. a potential export market exists particularly for "gari' in neighboring countries, and for cassava chips to Jurope. Food processing provides an important income opportunity in rural areas. It is, however, hampered by the poor state of the equipment and the absence of sedium-term credit for its purchase. all publicly owcnd food processing industries and units (maize in Bohicon, rice in Natitingou and wheat in Porto Novo) are closed or have serious supply, management or financial problems. 2.20 All food crop 2rjcs are set freely. f,wofarmer objectives are of paramount importance in the price determination process3 the farmer must a) mest his food needs for the year; b) ensure a margin of security or surplus that he would sell at any price or at low labor remuneration, to meet minimal monetary needs. For a given region, supply cames to the market all at the same time and price variability is all the higher given inelastic demand, lack of storage and little stability provided by the marketing system. Farmers often have to sell in bulk at low prices and buy later at high retail prices. Price uncertainty is such that the producer has little interest in expanding operations or improving his technology, since he may not be able to recover resulting additional costs through the sale of his output. The domestic market will continue to be influenced by Nigerian crops whose lover costs of production in CFA terms have contributed, until the devaluation of the CFaP, to depr*ss local prices. Unle8s a stable market can be accsesed in a competitive way, food will continue to be produced for self-consumption and could hardlty contribute to a growth strategy. As a result of the recent devaluation of the Cna? it is expected that prices for domestic production will increase, hence offering new development prospects for the local products. Past attempts by the CARDERs or ONC to buy food crops directly from the producers, have shown the capacity of the farmers to rapidly respond to price signals and stable markets. D. Access to Food and Malnutrition

2.21 Te few studies available on consumption patterns confirm the presence of four main models: a) in the North, sorghum and yams predominate with a consumption of about 93 and 225 Kg/person/year respectively; b) in the South, mize is the main staple food with about 110 kg/parson/year and cassava complemets the food intake with 113 Kg/person/year; c) an intermediate model covers the center of the country with sorghum being progressively replaced by maLze and yam by cassava; and d) a fourth model, increasingly spreading in southern urban areas, is dominated by rice and bread. leans consumption is constant throughout these models with about 5 Kg/person/year. On average, the daily intake appears adequate and provides at least 90 to 95% of the Lamimu theoretical daily requirements (daily per capita caloric supply was of 2,305 in 1989). However, seasonal food shortages occur together with severe unbalances fro one area to the other which reduce substantially the caloric intake of some population groups. Shis pattern leaves pockets of deficiencies in calory and protein intake, particularly critical to pregnant women and young children. as a result, possibly 18% of Benin's population are thought to suffer from one form -7- or another of food insecurity. 2.22 in rural areas limited access to food is mostly seasonal ard occurs one or two months before harvest. There are also sociological or geographical pockets of more chronic insecurity ins a) the overpopulated areas in the south, where land holdi"gs are small and severe soil degradation is taking place; b) some enclave areas in the north with poor soil quality or high degrees of erosion; and c) coastal areas where fisherae are experiencing depletion of the resource base and little diversification opportunities. 2.23 A recent study prepared under the IDA-financed pilot lood Security Project shows that overall per capita agricultural revenues vary from some thousands FCFA to more than 90,000 FCA in the cotton growing areas. Food intake costs vary from about 10,000FMFA to more than 30,000 FCFA, with the higher costs generally occurring in the north, mainly because the caloric unit cost of food (sorghum and yam) is higher than in the south. A comparative analysis of the agricultural revenue to basic food intake cost ratio, shows that 13 "sous- pr6fectures" have a lower than one ratio, even after taking into account non- agricultural income This ratio is a useful approximationfor comparing income levels (including self-consumption)to cost of living and reveals potential shortcomings in the purchasing capacity to meet standard food requirements. The analysis reveals that, in general, all the areas in the higher income categories have ratios above one and that food insecurity situations are most likely in the low revenue zones. 2 24 In the medium to long torm, urban growth and substitutionby local crops of importedproducts which have now become more expensive, will push up the demand for commercial production, which would be satisfied through an increase in food crop production in the northern areas where land is still available and through intensification of agricultural husbandry. However, for the lowest income population in urban and pern-urban areas and in rural areas where supply is in deficit and insufficiently diversified, with poor infrastructure, a weak commercial network and limited opportunities of alternative employment, the lack of income sources and instability will continue to be among the most importaat constraints in accessing food supplies in appropriatequantity and quality. 2 25 The linkage between food insecurity and poverty is demonstrated by the fact that food staples have been exported to neighboring countries while large number of people in enmin did not obtain adequate nutrition. Moreover, it appears that even with adequate supply, malnutrition levels are high, affecting almost 30% of the children. Empirical knowledge shows that malnutrition in poor areas is high even after many years of nutrition oducation, suggesting that poverty is one of the main underlying factors of malnutrition.The "poverty assessment* being prepared for Benin supports the assessment that nutrition indicators are very good measures of living standards and of the spending choices of the family toward a healthy life. 2.26 Xn addition to protein-energy malnutrition, which is directly linked to food insecurity, micronutrient deficiencies of Lodine, iron and vitami a are also prevalent. Goiter is endemLc particularly in the Atacora and northern 8ou, where it mostly affects womne and retards the mental development of children. Nigh prevalence of iron and folate deflciencyanemia is widespread and has been recorded particularly in the southern regions, including Cotonou, with a frequency among women of about 50%. Vitamin a deficiency is also common in many parts of Atacora and Borgou, where it leads to blindness among children and pregnant women.

2.27 The health status of the population of Benin is among the poorest in Africa. infectious and parasitic diseases, traumas and nutritional disorders account for the high levels of morbidity and mortality. Death rates are high, especially among women and children (the infant mortality was 1132 in 1990, against an average of 106 for Sub-Saharan Africa). High maternity mortality inflictsserious damage on family welfare; maternal morbidity and high fertility contribute jointly to the poor health status of women and children. Comprehensive data on the prevalence of malnutrition are not available; however, health statistics indicate that childhood diseases are often accompanied by, or are secondary to, malnutrition. Improper weaning practices are often the main source of malnutrition for children between 6 months and 2 years. Mothers breast-feed their infants as long as possible and weaning food does not have the autritional density required.somaetimes, traditional taboos as well as the parents' lack of nutritionaleducation are the main culprits of infant malnutrition. 2.28 The food situation in the cities has been worsening. Urban growth and little employment opportunities have created both nutritional and delinquency problems. The quality of nutrition suffers from the compounded impact of low income and poor health or sanitation services. The INSA1 1992 Budget/Consumption survey (conducted in 1986/87) reveals that the higher children malnutrition rates are in urban areas. The wasting rate' for Benin has been evaluated by this survey at 20% which is three times more than in comparable countries like Togo, Congo, Ghana or Burundi. F. Institutions Dealing With Food Security 2.29 The Ministry of Rural Develovment (MDR) is responsible for overall agricultural policy, livestock, fisheries, .orestry and hunting activities, and agricultural extension and research. The Food and Applied Nutrition Directorate (DANA), is responsible for monitoring the country nutritional situation and preparing nutrition rehabilitation schemes . DANA has also embarked lito production activities and manages a baby food production unit and an hort-culture center in Ouando (ou6m6 "Department"). 1 DR is undergoing a process of reorganixation including a review and redefinition of the statute and role of DANA, particularly in view of its overlapping functions with the liaistry of Health and its contested production mandate. In spite of its structural and operationalweaknesses, DANA could play a useful role in nutritional plannLug and monitoring, particularly for activities focused on prevention of malnutrition and training. MDR also includes a Food Technology Laboratory, but its operational capacity and funds are limited. It is however being strengthened in the context of the Agricultural Services Restructuring Project. 2.30 Field level dissemination and implemetation of agricultural development policies are the responsibility of six Regional Action and Rural Development Centers (CARDER) extending the MDRto each department. Prior to the ongoing reorganization, the CARDERshad expanded their activities to a number of commercial operations, which diverted them from their principal mission of providing support and techni"cal assistance for producers. Each CARDBRhas received, to greater or lesser extent, foreign assistance to fin"nce most of its capital and operating expenditures. 2.31 Significant institutional reforms are under way in MDR and the CARDERswith assistance from IDA and other donors. The objective is to develop a vital central tool for planning, monitoring and regulation, and to conc&ntrate the activities of the CARDERs on public sector tasks such as extension, monitoring and evaluation, supervision of rural works and legislation. Further initiatives and projects, bringing the public and private sectors together, help strengthen rural producer organizations and enterprises and promote the development efforts of rural communities.

X/ Infant mortality is measuredby the number of deathsbetween 0 and 1 year for every 1,000 life births.

.41Wasting Is measuredby the weight to height ratio 2.332 arketina Boards. The previous State management approach and dirigist regime attempted since 1967 to control food supply and marketing through a series of National entities. All but one have closed because of financial problems, poor management and competition from the private sector. The only institution which is still operating is the Natinal Cereal Board '9ffice National des C6rXales" (ONC), created in 1983 under XSDR.ONC's initial mandate was to buy, store and market cereals, regulate the market through storage, processing, distribution and management of food aid, and advise the Government on food security issues. A revLew of the food security sitiuation and of ONC performance, was carried out in 1991/92 by ONC with G!8 assistance. It concluded that ONC fell short of expectations in its role of marketingand stabilixation of the grain market. It never had the capacity nor the financial means to execute its tasks. Storage management was a major cause of financial losses given the small volume of activities, high amortization and management costs. Moreover, the private sector has always been predominant, leaving ONC with very little room to manocuver. 2 33 in accordance with the recoamendations of the review, ONC was restructured in September 1992 and its name changed to National Bureau for Food Security suovort, (Office National d'Appui & la 86curitf Alimentaire - ONASA). Its statute and mandate were redefined in the context of a liberal sconomy, where the private sector will continue to play the ajor role in food marketing, and in line with public functions aimed at improving the transparency and performance of the food sector. ONASA's new functions are: a) monitoring of the food security situation, prices and sarkets both nationally and regionally, and diffusion of the information; b) monitoring and following-up the agricultural campaigns and detecting in advance possible shortages through an early warning system - this is already in place with assistance fro FAO; c) improving the private sector operations and export opportunities by centralizing international market information and food requests and establishing an information exchange center; and d) advising the Government in the formulation and implementation of a food security strategy, inuluding possible proposals for food imports (comercial or aid) if deemed necessary. at the same tine, two committees were created in the context of the preparation of the Comprehensive Food Security Program with FAO assistance, an interministerial National Comittee for Food Security Coordination and a Committee for Food Security Monitoring and Evaluation, comprising Ministries, donors and WGs. 2.34 The provision and administration of aaricultural credit has faced serious difficulties in Benin. he bankruptcy and liquidation of the National Agricultural Credit Sank (CECA) left a considerable void, which has been partially offset by the ongoing rehabilitation of the Rural Savings and Loan Cooperatives Network (CLCAUs/CRCAMs). This constitutes a national network which has kept the confidence of the farmers Nowever, its activities are essentially developed in cotton growing areas. The network is presently the only vehicle of formal credit in rural areas. It operates on a purely autualistic and commercial basis, with safety ratios for lending, mandatory preliminary savings, 100% repaymet requirement for new lending, and interest rates of 2% per month NGOs are also involved in the management of small credit lines to local communities. 2.35 Yillase arouls (GV) are very active in the cotton zones. Their success is explained by the clear economic advantages for group initiatives in that context. Cooperative or groups activities in food marketing are limited. However, insofar as the villagers are convinced of the advantages of common services for storage, marketing, credit, processing, transport etc., they can be expected to collaborate within similar groups. 2.36 More than three hundred Non-Governmental Oroanizations (MGos) and Development Associations are registered in Benin and involved in different domains of socio-economic and cultural activities. Some of them have become actlve in the promotlon and support of villager groups or grass-roots initiatives and the development of the poorest sections of the rural populatLon. NCO development in Benin is recent and, so far, the preponderant role in the flold - 10 - has been played by foreign NOs. However, the recent political changes aud the new encouragement for private initiative have led to a remarkable growth of local development associations and national W8O that are destined to play an expanding role in providing support for the rural sector. A Council of Non-Governmental Organizations (CONQAD) and a National Federation of NGOs (FPWOG) were created respectively in 1988 and 1991 to coordinate KOO activities and promote discussiQns with the government; however their activities are hampered by lack of funds and their role and representativeness are not fully accepted by all WOOs.

2.37 Many local NGOs are constituted by groups of persons sharing common interests, often working in public services, but with little experience in field activities. However, some EGOs are also present in the field in support of development activities, mostly stemming from the local communities to which they belong. To that extent, the difference between NOOs and Development Associations is not always clear. The latter are present in most usous-pr6fecturesz and, although some have political interests, they play an important role in helping and mobilizing local community participation and replicating and sharing successful projects. 2.38 NGO activities include support to income generating activities, natural resources management at local community level, management of small avings and credit schemes, provision of basic health care, training and education, and construction of small infrastructure. EGOs operating in the field receive financmLE support from bilateral, multilateral and non-governmental sources. The Ministry of Plan is aware of the necessity to coordinate NOO activities and is setting up a unit responsible for establishing a roster of NGOs and for studying the possibility to promote collaboration and partnership. F. Food Security Interventions

2.39 A number of interventions are on-going with donor support in the food security and nutrition sector: a) the Early Warning Project within OMC started in 1988 with FAO support. It helped improve knowledge on food production, agricultural campaign forecasts, and price and market information through the publication of a monthly bulletin;

b) the GTZ-financed Food Security Project within ONC has undertaken since 1989 a thorough review and diagnostic of the food security situation in the country and assisted ONC in its restructuring process and in the preparation of a National Food Security Strategy; c) pilot field operations were launched in 1990 with IDA financing by four international WGOs in support of food security at rural commuity level in S usous-pr6fectures" identified as being at food security risk; d) Development Funds, like the Local Initiatives Support Fund (FAIB), financed by UNDP and G2Z, are set up to promote local development and to finance equipment for micro-projects; e) a new initiative has started in 1992 with FAO support to study the decentralized storage system; f) UNICEF assisted DANA in 1988 to start a pilot phase (two "prefecturesw in the Sou Department) of a children nutrition improvement project; g) DANA institutional strengthening including support for a nutritional health program in the field and for a baby food production unit has been undertaken with Italian assistance since 1986; and is presently being phased out; - 11 -

h) a program of maternal and child health services is being implemented by the Ministry of Health with IDA support; i) Cathwel, through the Ministry of Labor and Social Affairs, monitors children's nutritional status through a network of relief centers and distributesfroe food; and j) the World Food Program implemets a program of food and tools supply for community assistance and "food-for-work". 2.40 Two additional inltiativesare presently under preparation,both within ONASA.The first, with FAO support,is assistingthe GovernmeAtto prepare a Comprehensive Food Security Program, and the second, with OTZ assistance, envisages support for food crops marketing schemes. 0. Food securlty Strateov 2.41 The seminar on agricultural policy held in Cotonou in July 1990 defined the major goals of Benin's rural development,which are part of the new national policy framework.These goals are- (a) to increase export receipts and improve the competitiveness of national production while reducing public expenditure; (b) to improve rural living standardsby raisingindividual incomes and upgrading services and infrastructures; (c) to ensure food security; and (d) to ensure rational management of natural resources. The food security strategy was further refined in 1991/92 together with an institutional reform aiming at the retrenchment of the State's role to public functions, strengthening the implementation capacity of its new mandate, and recognizing and facilitating the private sector role. However, there is yet no clear national nutrition policy defining the role of the many different institutions intervening in this domain and providing a set of priority actions to be undertaken at the national level. 2.42 in spite of an overall satisfactory food security situation from a macro-economic and supply stand-point, the objective of providing "access by all people at all times to enough food for an active and hea3thy life" is not reached, and the analysis reveals the presence of groups of population or areas at food security risk. While food insecurity in Benin is far from being as serious a problem as in Bahel countries or regions which have suffered from drought or major conflicts, the percentage of malnourished people is such higher than in countries where physical and climatic conditions are comparable. Given the diversity and the sociological and geographic distribution of these "pockets" of food insecurity or malnutrition, specific approach need to be tailored to the real needs of local communities. 2,43 The main thrusts of the government strategy would be to: a) ensure sustalnability of domestic food supply by, in the South, increasing productivity and intensifying agriculture through better technology, and, in the Worth, stopping the natural resources degradation and better maintaining the food crop production potential for the future; b) reduce seasonal instability of supply by developing the local sarkets, improving collection and diffusion of information on prices and markets to limit speculative operations while allowing for more transparency and facilitating private trading, encouraging storage at village and community level, reducing isolation of enclave zones to perait a better integr.tion in the marketing network; and c) liprove access to food supply and to better diets by developing new employment opportunities and income generating activities for increased revenues, diversifying agricultural production and introducing nutritional training programs for mothers and children. The recent devaluation of the CFAF will offer new market opportunities by rendering local products more competitive for export and permitting the development of more traditional crops on the domestic market by substituting food imports which would now become more expensive. Therefore, the strategy should be seen under the perspective of a government effort to create an enabling environment that would - 12- result in faraers responding favorably to market signals for increased reveues. At the same time, the strategy should aim at reducing the number of people incapable of producing and of purchasing. 2.44 in addition, by its geographicalsituation, Benin will have to integrateits food securitystrategy into a regionalperspective in terms oft a) establishing institutionallinks aad information networks with neighboring countries; b) moitoring the regional market situation and facilitatingaccess to export markets; and c) participating and encouraging triangular operations in the context of regional food aid lnterventions. 2.4S To the extend possible, food ald from foreign donors should be purchased locally and sold through commercial channels rather than in the foar of commodity aid, whlch has a negative impact on agrLcultural prLces and private marketing agents. Overall, most elements of a viable food security program are an iategral part of the agricultural growth strategy. B. Role of IDA 2.46 XDAand the French Cooperation have financed in depth studLes on the rural sector of Seni. The objectlve of the revLew was to analyze needs and problems in the sector and identify development actioas. A July 1990 national sominar led to the preparation of a new rural development strategy and to a rural development policy letter which served as the basis for negotLations of the Agricultural Services Restructuring Project in May 1991. An agricultural sector revLew report was completed in June 1992 and an agrlculture Round Table, with IDa and CFD as leadlng donors, is expected to take place in early-1994. The conclusions of the various studLes, the experlence derived from earlier projects and the recommendations of the various preparation missLons have made it possible to sustain a fruLtful dialogu with the Government and donors and to propose pollcy actions, Lnstitutional changes and specLifc investments designed to address the main rural development and environmental issues. 2.47 Future IDA financed operations in the agrlculture sector will be goared to Benin's strategic options. The Eavironmental Action Plan, the restructurLag of agricultural services, natural resources management, and local interventions for food security will help address the princpal Lissues i the strategy and propose action programs for the envlronment and natural resources anagement, the institutional fraework, support services for the rural population, and address food insecurity situations where they occur. These activities will at the saum tlme promote beneficiaries participation in the design and implementation of remedial actions. *IA would also help the goverment address the opportunities created by the devaluation of the CPAF, by promoting agricultural diversification and the development of new crops for the export market through private sector initiatives. 2.48 The policy dialogue which is being conducted between the Government, IDA and interested donors regarding a rational approach to food seocurlty enabled the Bank to prepare in 1990 a Food security and Poverty Alleviation Strategy Paper for eonin. It also perditted to lay the foundations of a national food security strategy and to launch a pllot operation seekLng an innovative way of collaboration between IDA, the Government and Voos. This is in line with the overall Bank's poverty reduction strategy and particularly in helping the Government target and reach specLfic groups of rural poor in aras at food security risk. This project would fall under the Targeted Intervention Program Objectlve and its focus on womnmactivities would also be in line with the Womea in Development initiative. 2.49 The dlalogue on poverty is broadening in the context of a Soclal Dimension of Development (8DD) initiative impleeated by the Government and has expanded to other sectoral and central ministries to develop a sound policy base in support of government efforts to reduce poverty. In addition, a poverty - 13 - assessment is being prepared by the Bank for better integration of poverty issues into the design of the Bank's assistance strategy. By dovotailing with the policy dialogue effort, this project would represent an opportunity to rapidly translate into actions the objective of distributing the benefit of growth among the poorest segments of the rural population.

2 *50 Moreover, recent political changes and reforms promoting private sector initiatives, offer opportunities of new approaches in rural development operations and poverty alleviation programs. In particular, the recognition by the Government of the role to be played by NGOs in the development process and in the eaergence of the civil society entails new ventures of partnership in favor of decentralized decision-making and in consolidation of the democratic exercise. I. Previous IDA excerience

2.51 In the past, rural development has often been planned and implemented within a sectoral and regional frame, along objectives elaborated without involving the local inhabitants in the decision-making process, and through forma. administrative structures. The approach suffers from institutional and bureaucratic constraints, lack of flexibility and high overhead costs in addressing specific problems of the local communLties or in targeting assistance to vulnerable groups.

2.52 5he present policy of reducing State involvement in the management of production and overall assistance strategy in favor of community development is conducive to larger NOO involvemenut and farmer participation in the design and implementation of action plans. In this coutext, a fced security pilot operation was initiated three years ago with IDA assistance and the partnership of four international NwOs intervening in five different "sous-pr6fectures". A Coo4ination Committee composed by representatives of the Admnistration and of the NoOs, has been entrusted with the role of general coordination and orientation of the activities* A small monLtoring and evaluation unit carries out the technical follow-up, administration and management.

2 53 The activities undertaken by the rural communities with NGO assistance vary considerably according to the specific situation of each area of intervention. In general, the actions that resulted in the most evident and beneficial impact on the food and nutritional status weres a) small infrastructure and rehabilitation of feeder roads, which helped reduce the isolation of certain areas, permitted a better integration into the market and increased or diversified the food supply; b) support for women's marketing and trading activities and the establishmant of storage facilities contributed greatly to a better stability of the supply and price of food, and improved the producers' marketing capability; c) financing for various types of activities and small equipment for processing, cereal banks operating funds, marketing and diversifying the sources of incom, which generated new economic opportunities and increased income; and d) nutritional training and agrieultural diversification, which permLtted the introduction of new crops of high nutritional value (beans, vegetables, soja-beans and groundnut).

2.54 Three years of pilot activities have developed hands-on experience and helped test both the JGOs technical impleaentation capacities and the new institutional formula in favor of a decentralized approach to project manageament. Although this approach is still experimental in Benin, preliminary results show thats a) the EGOs have demonstrated a clear comparative advantage with respect to governmaent structures in targeting assistance to local communities and facilitating their participation; b) community response was generally very positive and proved motivated in getting organised for better delivery of services, maxll works, nutritional training and new income opportunities; c) although it may still be too early to assess, the impact of the actions undertaken has in general been positive by reducing the food security risks of - 14 -

the targeted groups or areas; however, emphasis should be devoted to a performng monitoring and evaluation system; d) Noos have had some difficulties in coping with the necessary discipline and administrative requirements of public fund management, in meeting disbursesent requisites, in preparing progress reports and in willingly accepting Government supervision; a) technical support is required to compensate for possible Noos limited managerial and technical capacity; f) closer links have to be established with various Government services to permit strategic coherence of actions, and increased long term development impact; and g) the scope and scale of Noo interventicns remain limited but yet effective for the type of activities required when addressing specific food security situations and targeting vulnerable groups. 2.55 The institutional set-up of the pilot phase indicates that the Coordination Comittee (associating the Government and the XGOs), proved useful to ensure overall guidance, define the intervention strategy, approve the budgets and maintain the dialogue. However, it expanded beyond its lintial mandate and got excessively involved in day-to-day project managemet issues with too frequent and lengthy meetings which, to some extend, affected negatively the relationship between Government and NOOs at the central level. It also appeared that technical support, central administration and management of the NOOs' operations in the field should benefit from a goeater autonomy to be best responsive to the type of approach adopted. At the same time the Government will have to ensure that required financial, managerial and technical criteria are respected. The Government and the Noos have confirmed their interest in continuing along this approach. The emergence of national NGOs with field implementation capacity is still recent. Rowever, although the pilot phase was mainly conducted tbrough international NGOs, the emphasis would now shift towards a larger integration and participation of local NGOs. J. Data Base and Idenification gf Areas at Wood Security Risk 2.56 In line with the objectives of the pilot oper:ation, considerable information was collected during the first three years of activities. A data bank has been constituted to help identify the areas at food security risk and to set the basis for larger food security and poverty alleviation interventions. Data on fourteen parameters related to food insecurity causes and effects were gatherod extending over a period of 10 years and for the 77 "sous-pr6fectureso of the country (Sources: MDR, CNC, DAMA,INSAN, Cathwel). a study was conducted to analyse the available information and retrieve the data on a multi-variable approach (see Annex 3 and working document 2). Typologies have been constituted for the different "sous-pr6fecturesa based on the causes and effects leading to food insecurity and maps produced for the various indicators. A sensitivity analysis was also carried out on the basis of different combinations of indicators and different weights showing the robustness of the conclusions. The results were also compared and confirmed by empirical knowledge, field visits and other studies carried out particularly by ONABA,and which led to the preparation of a food security atlas. 2.57 Given widespread poverty and limited adaminstrative capacity, initial identification of areas at risk will facilitate further targeting of vulnerable groups, focus interventions and allow for better monitoring. The information collected represents a considerable improvement in the poverty data base and performance indicators for -enin, and would greatly help in amoitoring the on- the-ground development impact of poverty and food insecurity reduction efforts. It constitutes a most useful analytical and operational tool for the setting up of a dynamic food security information system, monitoring populations and areas at risk and revising the initial diagnosis. It would have to be maintained and updated systematically for meaningful evaluation and planning of remedial actions. 2.58 The analysishighlighted the presenceof 11 first priorityareas "at risk" and 9 which, although in a less precarioussituation, present a number of - 15 -

potentially risky factors (second priority areas at risk). These areas (shown below and in the Map) are generally characterixed by low revenues and predominance of agricultural activities. Marginal production areas with natural resources or infrastructure constraints are often at risk. Instability of supply, leading to difficult shortage situations before harvest, is magnified by low revenues and high food prices and it particularly affects small farmers in non- cotton growing areas. Isolation due to impassable roads during the rainy season is also a recurrent factor, which is conducive to little market integration, poor marketing and limited opportunities for other income sources.

Atacora loukoumbe, Materi Natitingou, Cobly Atlantique Ouidah So-Ava, Kpomass6

Borgou Karimala __. Mono 9opa, Com6, Grand Popo Dogbo Ou6m6 Aqu6gu6s, S6m6-PodjLi Dangbo Zou Za-Kpota, Agbagnizoun Zaqnaqnado, Zoqbodom6, Cove

III. THE PROJECT A. Proiect Rationale

3.1 Activities in support of food security in Benin, have focused until now on obtaining a better knowledge of the food sector, setting up information systems and helping prepare a food security strategy, while the more traditional agricultural projects were mainly directed in support of the supply side. However, the main food security problems, although studied, have not yet been addressed properly in the field and little has been done to improve the situation of the groups concerned. It is important that concrete efforts, consistent with the diagnosis and the strategy, be undertaken to improve access to food and nutrition standards of the most vulnerable groups of the population in a sustainable way.

3.2 The proposed project is in line with the food security and poverty alleviation strategy. It aims at providing assistance to the most disadvantaged segments of the rural populations. Its activities will be focused, monitored, and based on the delegation and decentralization of management of field interventions. The approach will build upon specific situations and constraints, aiming at their solution through the empowerment of local communities with particular emphasis on women groups. Experience has demonstrated that traditional development projects alone cannot reach effectively the people lacking food security. Moreover, administrative structures usually prove unadapted in targeting and accessing the poorest segments of the populations to provide services tailored to local community needs. 3.3 The IDA/NGO supported pilo- project has proved that it is possible to intervene effectively to address specific food security constraints at the local community level. Moreover, the recent development of local ROos with relevant experience, offers a good opportunity to expand activities. The existing data base and the food security and nutritioA map represent an important tool that will permit better interventions and targeting of areas and groups. B. Objectives

3.4 The project would focus on poverty alleviation and would assist the Government in improving the food security and nutriti-.n standards of the more - 16 -

vulnerable population groups of the country. The project would support simple agricultural, commercial, fisheries and peri-urbau activities aiming at improving the income base of those rural groups through new employment opportunities and regular access to food in the more risky areas. it would also aim at reducing malnutrition rates with particular focus on children under five years and pregnant and lactating women. The active involvement of the local population groups concerned with each activity would be sought at the identification, planning and implementation stages. 3.5 The project would contribute to a better knowledge of the household situation and local strategies by maintaining and updating the food security data base initiated under the pilot phase. Xt would help improve the information system for better planning and targeting of vulnerable populations and areas at risk, and it will feed in the periodic review of the food security situation process and overall strategy definition. 3.6 The project would also act as a catalyst in developing and strengthening partnership between the Government and the NOOs, improving exchange of information and seeking collaboration between NOos and public structures in the provision of assistance and services to the rural population on a mutual trust basis and with reciprocal support. C. Summary Prolect Descrnition 3.7 The project would be implemented over a five year period and would be focused at the organization, implementation and management of local interventions in support of vulnerable groups. Xt would also promote institution building and help the Government assess and monitor the situation of vulnerable groups for better design and implementation of strategies and actions. 3.8 The project would comprise three major componentas a) micro-projects and local community support for development initiatives and income generating activities including small agricultural projects and livestock raising techniques, food processing and marketing, storage and food conservation facilities and improvement of small infrastructures;

b) nutrition activities through local nutrition community agents supported by MOOs for the improvement of the nutritional status of women and children in the target populations and realization of a Beneficiary Assessment; c) institution building, including preparation of a national nutrition policy, strengthening of the food security planning and monitoring capacity, updating the data base on vulnerable populations and information systems; and coordination of field activities including project management, monitoring and evaluation, technical and administrative support, and training.

D. Detailed Features a) Micro-orojects

3.9 Based on the experience gained under the pilot project, it is proposed that selected Moos assist rural communities in designing and implementing micro-projects aimed at improaing their food security situation and develop sustainable income generating activities. Project activities would concentrate in the problem-areas pre-identified (para.2.58), however the situation would be regularly monitored and the scope of the project adapted accordingly. Moreover, in those areas, further selection of rural commauities wiuld be carried out to ensure that the most vulnerable populations are reached. - 17 - Although food insecurity situations appear to be chronic in certain areas, in may cases food insecurity is seasonal and shifts fom one area and population group to another. This, combined with the increasing demand fro producers' groups and N0os for financing sall rural projects, offers oprortunities for enlarging the scope of the proposed interventions. 3.10 Community development would be the main vehicle to addresa constraints identified as conducive to food insecurity and poverty. Deneficiaries of the local development initiatives would be rural groups, averaging about 10 members, recognised by traditional and administrative authorities. In all cases the approach would be to seek close participation of the beneficiaries in tho identification, design and implementation of the activities. The project would channel funds and technical services through R00s to rural groups which would undertake to provide in-kind and/or cash contribution for the implememtation of several types of income generating, socio economic or micro-infrastructure activities. As demonstrated during the pilot phase of this project, it is particularly for this type of operations that NOos have the best comparative advantage in their capacity to ensure group interest and participation in the implementation of collective activities and in targeting specifically vulnerable groups and areas. 3.11 The nature and type of initiatives to be supported may vary from one area to the other according to prevailing circumstances. A description of the type of micro-projects is summarized below, and some costs estimates and budgets are given in Annex S. An implementation manual (para. S.13)provides the criteria to be met for their eligibility and financing. 1) Incoe aeneratina activities refer to micro-projects benefiting specific organized groups. The project would finance the purchase of equipment, assets and inputs required for the implementation of the activity and the related training. They comprise:

* agricultural development activities, including: i) support for crop production and diversification(rice, vegetables,plsciculture), group marketing and small trading activities; and Li) establishment of pisciculture ponds, beekeeping, and promotion of breeding activities as poultry raising and fattening of small ruminants; and

* simple food processing techniques, includings i) transformation units for KaritU-nut and saponification; Li' processing of cassava into "gari4 and chips, and of maize into flour; i1i) extraction.of palm and coconut oil; iv) conservation units for tomatoes and fish smoking; and v) shelling of groundnut and rice. 2) Socio-economic activities refer to community micro-projects aiming at improving income and food security and requiring sall constructions, land development or rural works of a productive nature, and related training. They comprise:

* support to storage and marketing. This activity would aim at avoiding temporary shortages by increasing group and village stability of food supply throughout the year and at reducing post-harvest losses. Activities would also aim at regulating price instability and limiting peaks and lows before and after harvest through the construction of food stores (mostly for cereals), for marketing purposes. Construction and sanagement approaches may vary according to local circumstances; in general traditional or improved stores or granaries would be built, managed at the group, village quarter or village level. Ustablisbment of cereal banks would be undertaken only with sufficient evidence on their sustainability and management capacity of the group. In some cases, the iitial food revolving capital for small scale group or village granaries could be provided through WFP support; and - 18 -

* small works such as bottom-land management, establishment of home or group gardens for self-consumption, small scale water control, tree nurseries and assistance to seed multiplication farmers, agro-forostry and anti-erosion techniques in particularly degraded and marginal zones. Other small works include construction of some office facilities for groups or cooperative activities and improved stoves to reduce fuelwood use. 3) Micro-infrastructures. Most of these activities aim at provLding assistance in the solution of clearly identified constraints particularly in the most remote and unaccessible areas. Small works would mainly consist in improvement of village access and feeder roads, the rehabilitation of small structures (small bridges), the rehabilitation of market-place facilities, village wells and livestock watering points. It would particularly help resolve modest but very common and widespread transport constraints, which, although requiring little financi&l input, are neglected by usual public interventions. Willing participation and commitment to maintenance of the micro-infrastructures by the local communities concerned would be mandatory and would represent the most important and reliable insurance for the sustainability of these operations.

3.12 Activities would be identified, prepared and appraised in accordance with strict established criteria and procedures contained in an Implementation iManual defining implementation and financing procedures (para.5.13). Criteria used for the selection of the appraised operations are that they be: a) directly productive or of a socio-economic type, improving food security and living standards of the poorest segments of the populatiot; b) financially sound in the case of income generating activities, to be demonstrated through simple income statements or farm budgets and increased returns to labor; c) capable of being maintained by the beneficiaries for increased sustainability; d) environmentally sound; and e) designed and implemented with the assistance and sponsorship of a pro-qualified WGO in targeted areas. EGOs will be selected on the basis of eligibility criteria permitting to assess their acquaintance with the zone, experience, demonstrated capability and willingness to sponsor the activities of local groups.

3 13 For the small works to be carried out at the village or community level they would have to be requested by and with the direct involvement of the local populations for construction and maintenance. Local labor would normally not be remunerated, with the exception of some wfood-for-work" to be provided by WFP or "cash-for-worku in cases of works of more general interest. Financing for major social infrastructures would be sought under other programs and therefore are also excluded under this project (health centers, schools, electrification).

3 14 Activities are targeted at the most vulnerable groups in pre- identified areas at food security risk where transfer of funds to rural groups is justified in view of the limited productive resources available and lack of access to foryal or informal financial institutions. For the rural groups to be eligible under the income generating activities of this component, manifest interest, ability to sustain the activity and commitment on the part of the beneficiaries would have to be assessed. The group would have to provides a) a contribution. in kind and in cash, of at least 20% of the investment budget of the activity; b) a commitment for replacement of assets and equipments, through cost recovery (para. 5.15-20), and for operation and maintenance; and c) a commitment to provide all unskilled labor for development activities, construction and maintenance with no remuneration. 3.15 The pilot phase demonstrated that income generating initiatives ara generally most effective when they are in support of women groups. In order to support productive female-initiated activities, assurances were obtained during negotiations that about 50 of the financing allocated for income generating activities would be reserved to groups entirely constituted by women. The - 19 - percentage would be reassessed during the project mid-term review. The 50% allocation would not prevent women to join other mixed groups in order to access project financing. 3.16 Most of the activities in support of women groups would be predouLnantly directed to diversLfy thelr source of income, ease womsaes time constraiats and facilitate access to alternative income generating activities. In that respect, the potential Lipact of these activities would be particularly relevant in conjunctLon with other proposed iLnterventions aiming at promoting labor saving devLces which would free women's time that could be devoted to other nutrLtionally-useful actLvitiee. Moreover the thrust of women-oriented ilnitiatives would be to make sure that increased access to food by vulnerable households will also liprove autritlonal status of women and chLidren (para3.22). 3.17 In order to ensure a rapid start of project activities, an MOO selection process has already been carried out during the piot phase and project preparation as followss a) pre-selection of 26 interested national and international Noos, according to criteria of experience and reputation as being "bona fide" NGOs; b) information and sensitization on project objective and strategy of the 26 N00s, which were also requested to provide a detailed presentation of thear organization, manageamet and field experience, CVs of members, and a first proposal of approach in the context of a food security interventlon; c) seventeen NGOswere retained after analysis, they were provided with all relevant documentatLon and informatLon on the experience of the pilot phase and given the opportuaLty to identify and prepare, together with the local communities, an lntervention proposal in one of the selected area to support local group's initiatives; d) thLrteen lnterventLons proposals were finally submitted by 6 national and S international pro-selected GOostogether with a justificationof the differentactivities and a budget. In some cases local and international NOOs would intervenein joint ventures, as presented below:

Dertment Sous-prafecture International MOO National NGOs ATACORA 1. Bouktumb6 AFVP GRAPAD 2. Iaterf ACCORD BORGOU 3. Karimla_ SAD 4. Kalat6 SAD ATLANTIQUE 5. Ouidah/ AFVP1/ MONO 6. Grand-Popo ) 7. Com6 HRJC 8. eopa/possotoM6 OCSD ADESCOP OUEME 9. Sem6-PodJi VED/AFVP CIRAPIP ______10. Dangbo CIRAPIP ZOU 11. Cov6 ) GERAN 2/ 12. Zagnanado ) 13. Kdrd/Dasse20u OCSD FADECK 1/ AFVPproject extendsover the two neighboringareas of Ou1dahGrantd-Popo 2/ GERANproject extexdsover the two nelshboringareas of Covd/Zagnanado AFVP:Association Franqaisedes Volontaires du Progres SAD:Service Al emndde Odveloppement OCSD:Organisation Canadienne pour la Solidarit6 et te D6veloppement VED:Volontaires Europ6ensde D6veloppenent GERA:Groupes d'Expertise et d'Ingenierie rural pour l'auto-promotiondu mondepaysen CIRAPIP:Centre d'Information de Rechercheet dWActionpour la promtion des Initiatives Paysannes MRJC:Iouvnent Rural de la JeunesseChrtfenrne GRAPAD:Groupe de Rechercheet d'Action pour la Promotionde l'Agriculture et du D6veloppement ADESCOP:Association de D6veloppementsocio-fconomique de ta commurede Possotom6 FADECK:Fonds d#Appui at Developpementde la Coamunede K6r6 - 20 - 3.18 The proposed interventionsare still subjectto further refieoment and would have to be evaluated under the project according to established criteriaand procedures. Zight of the targeted 0sous-pr6fectures" correspond to first priorityareas at risk and three to second priority areas (para. 2.58). Two more areas do not belong to the two above categories but they have been maintained in the selection as a continuation of on-going pilot phase actions and after justification of the specific focus of the proposed interventionson vulnerablegroups and the absence of other activities in the sone. 3.19 The EGOs sponsoring the activities in each "sous-pr6fecture' would also work in close collaboration with the existingDevelopment Associations, an an opportunity to better access the local populations and as privileged partner to take over or extend MOO support. Some of the proposed interventions (Boukoumb6, Dassa-Zoum6, Possotom6) already included participation of the local Development Associations at the design stage and mostly as a continuation of the activities initiated by the international NGOs during the pilot phase. Where international NGOsintervene, joint ventures with national NOOs would be required to facilitate the emergence of experienced local NWOs. Considerable efforts would be devoted by each NEO to strengthen the capacity of the rural groups in managing the technical and financial aspects of the operations to be promoted. 3.20 NoOs selected during the course of the project would enjoy a large autonomy in conducting their field activities in support of the rural groups. Financing to support the local development initiatives would be made available to them on the basis of a formal agreement signed with the project specifying the rights and obligation of each party and in accordance with an agreed work program and budget (paras. 5.S and 5.14). EGOs would finanes their staff as part of their contribution to the project. The project would finance the goods, works and services for micro-projects implementation, the MOOs' incremental operating costs for carrying out field activities, and the related training of beneficiaries. NCO administrative costs would be negotiated when approving work programs and budgets and would not exceed 15% of the investment costs of the micro-projects. b) Communitv Nutrition Prooram 3.21 The community nutrition program would be directed to women's groups to improve family nutrition standards with particular focus on children under five years and pregnant and lactating women in the areas of project intervention. The project would increase household awareness of malnutrition causes and effects through education, growth monitoring, supplementary feeding if needed and referal to health rehabilitation centers when required. 3.22 The general strategy of this component would be to* a) ensure a close linkage between income generating activities and nutrition interventions. Empirical evidence shows that nutrition education carried out in isolation from poverty alleviation efforts has very 144ted impact on the improvement of the nutritional status. It appears that in the medium/long term, poverty alleviation is the leading factor to improvement of nutritional standards. Therefore, the project will encourage intervening NOOs to combine income generating and nutrition activities. This should serve to broaden the effect of both interventions and be a more cost-effective approach to development impact. Moreover, the nutrition education intervention would benefit from the structure already in place for the micro-project. Where limated NoO capacity or experience in nutrition interventions is a constraint, the project would seek participation of nutrition-specialized NGOs. the latter would specifically implementthe community nutrition program and also promote initiationof income generating activities; and b) ensure a preventive approach to reducing malnutrition through empowerment of local community nutrition workers (CNN), their regular - 21 - training and better use of existing resources. Monitoring of children growth monitoring and nutritional supplements distribution would be decentralixed at the village level under the responsibLlity of a female community worker selected by the village. Regular nutrition education and supervision would enable the community nutrition agent to pursue preventive malnutrition control even without the project and therefore ensure sustainability at the ground level. 3.23 The CNN would be provided with the required materials and supplies to monitor the growth of children up to age 5 and provide assistance ins treatment of diarrhea, support for breast feeding, oerichment of the diet in protein, reduction of 'vitamins and mi4erals deficiencies (iron and folate, iodine, and vitami A), preparations of weaning foods by groups of womnm. Large growth charts for village discussions of the causes of malnutrition would be used. CENs would be given food rations in compensation for their work. 3.24 Qualified NGOs would implement the program and are expected to be in close and periodic contact with the CNWs, and ensure their regular training and support through locally recruited supervisors who would be provided with motorcycles. Arrangements would be sought with existing decentralixed structures and staff from the DANA (posted in the CARDERS), the trained agents of the local primary health care centers and CATWMELsocial centers staff, to implement supervisory work. Supervisors would belp CWas to better organize their activities, to better counsel women and plan resources needed for training, supervision, feeding and min rals distribution. Supervisors would also be in charge of linklng with Goos and regional edical services. Sao staff and supervisors would be trained on the different packages and on nutrition education More details on this component are provided in Annex 6. 3.25 Deficiency disorders eradication campaigns with particular focus on iodine, vitamine A and iron, would also be implemented in areas of high prevalence of malnutrition. Emphasis would also be devoted in the implementation of an information, Education and Communication program. specialized organisations would be used for such purpose (DANA, MNB,CRUDEA, Ministry of ealth). The project would also finance a Beneficiary Assessment in each targeted sous- prefecturea to better identify and define the different concerns as expressed by the targeted population and reorient or refocus activities and mesages. c) institution Buildin, anaaement and Monitorina 3.26 The ONAUA, under MDR,would be the Governmt's focal point for the design and implementation of food security strategies, as th new agency in charge of food security support, planning and aonitoring. OGAua would be responsible for ensuring that the data base constituted during the pilot phase be systematically updated and analyzed and the results published. This would contribute to the setting up of a permanent system of food security monitoring, which would feed into a geographical information system aimiag at better understanding household strategies and constraints and at updating the overall food security strategy. To that end, ONaAS would complete the setting up of a price observatory in each uDepartmeta and undertake market and price surveys ia the project-targeted areas to determine the impact of project interventions related to marketing and price stabilization. 3.27 The project would support the preparation of a national nutrition policy and help better define the role of the different institutions and 3o(0 involved in its implementation and monitoring. It would also assist DANA in redefining its mandate and reorganizing its activities in line with the restructuring program of MDR. 3.28 Coordination, supervision and central aanagemnt of fleld activities would be entrusted to the existing Management and Monitoring Unlt (NW), within ONASA. It would be staffed with seven national professionals (some of which - 22 - already in place), to be recruited on the domestic private market, comprising a head of the Unit, a training and community development specialist, a monitoring and evaluation specialist, a statistician, a nutritionist, a rural works engineer, a financial controller and an accountant. Given the gradual increase of project activities, some flexibility would be allowed to permit adequacy between the staffing and the workload, particularly for support in project administration. The Unit would call upon and be regularly supported by national and international consultants in various domains, particularly to help in the preparation, appraisal and implementation of projects. An accounting and monitoring system for all the operations would be set-up by a specialized firm before project starts (para.4.18). The University of Benin (UNB) would be entrusted with the evaluation of project impact in the targeted areas of intervention. Particular emphasis will also be devoted to training of NoOs in implementation capacity, community development and nutrition education. The mNu would organize regular seminars for all intervening NGOs to share experience and successful activities. 3.29 Two decentralized project units would be created, one for the north and one for the south of the country. Each one would be staffed with two professionals combining the profiles of agro-socio-economist with expertise in community development. They would support NGOs and farmer groups in micro-project preparation, ensure that eligibility criteria are met and accelerate micro- project evaluation. Their role would also be to liaise with local authorities, representatives of the Ministries concerued (MDR, Public Works, Health), NGOs, Village Associations and other on-going activities, to vet sub-project proposals, coordinate approaches and facilitate micro-project approval. 3.30 The DOU would also be responsible for centralizing the information and progress reports of the different NGOs. The Unit would promote exchange of information and experience among NGOs by organizing annually a two week seminar wLth all the NGOs to: a) review constraints in implementation and the overall technical aspects of their operations; and b) organize specific training sessions on micro-project management, financial management and administrative procedures. The project would finance some vehicles and motorcycles, equipment, consultants and contracted personnel, training, ONASA, DANA and UIS monitoring and evaluation activities, and the incremental recurrent costs. 3.31 The MMU would help organize and coordinate financing for the nitiation of development activities in the field and promote NGO sponsorship. *n the medium run NGO efforts in support to the targeted communities are expected to be taken over by the comunities themselves and by the Development Associations. Moreover, the XGOs would become increasingly capable to generate funding from other sources or from the supported groups or villages to expand their activities. The MMU would therefore serve the purpose of providing the initial catalytic role in bringing together and developing Government-NGO relations for the proposed targeted interventions at the request of the rural communities. IV. PROJECT COSTS AND FINANCING

A. Cost estimate 4.1 Project base costs are estimated at some CFAF 8.0 billion over five years, i.e. about US$14.9 million at the exchange rate prevailing in February 1994 (US$1 = CFAF 575) and at the before devaluation rateS for the pilot phase (US$1 = CFAF275). Physical and financial contingencies would raise thc total cost to some CFAF 10.4 billion, i.e. US$19.1 million net of taxes and import duties, of which about 47% in foreign exchange. Villager contribution has been estimated in a conservative way at about US$0.9 million, mainly as labor and cash

Erlhe exchage rateof theCFAF to the frenhfrac previy ixed atson hasbeo reaG8nedto 1OOtan Jauawy12,1994. - 23 - contribution to the execution of project activities and works, and included in project costs. Summary of Proiect Costs

Local Foreign Total % of I Exchange Base j______cost ----- US$ million ----- Micro-projects 1/ 3.7 4.3 8.0 54 Community Nutrition Program 0.8 1.3 2.1 14 Inatit. Building, Mgt.& Monitoring 1.5 1.4 2.9 19 Project preparation (pilot phase) 2/ 1.1 0.8 1.9 13

Total Base Cost 7.1 7.8 14.9 100 Physical contingencies 0.3 0.6 0.9 5 Financial contingencies 2.8 0.5 3.3 22 TOTAL COST 10.2 8.9 19.1 127

1/ Includes MGO and beneficiary contribution for the implementation of field activities (about 17% of project costs) 2/ financed through PPF, DANIDA grant & lOO/GOB contribution 4.2 Financial contingencies reflect Bank projections for world inflation for foreign supplies and services for the period 1994-2000 at an average price increase of 2.8% per annum, and estimated inflation in Benin for costs in local currency at 25% in 1994, 10% in 1995 and 3% onwards. Physical contingencies account for 5% of base costs. A cost summary is given in Annex 8. B. Financinu

4.3 The IDA Credit of about US$9.7 million, would be provided at the usual conditions of the Association and would be granted for a period of 40 years. The Government is expected to contribute US$0.6 million and would also be responsible for paying the salaries of all non-contractual staff and taxes on imported goods. DANIDA would contribute a grant of US$4.9 mainly for the field operations of which US$450,000 has already be made available to finace WOO activities under the pilot phase. WFP is expected to finance the foodstuffs and tools for an estimated amount of US$0.7 from their on-going program in Benin. NGO contribution to the project would cover all their personnel cost (about US$450,000 during the pilot phase).

Financing Plan by Proiect Component (US$ million)

IDA DANIDA WFP NGOs GVT BENEF TOTAL Icro-projecs 2.8 4.5 0.6 1.9 0.9 10.7 Community Nutrton Program 2.6 0.1 2.7 InsLBulding Mgt.& Monitoring 33 0.5 3.8 Project preparation (pilot phase) 1.0 0.4 0.4 0.1 1.9 Total 9.7 4.9 0.7 2.3 0.6 0.9 19.1

U Fmancing share (%) 1% 25% 4% 12% 3% S% - 24 -

FinancinetPlan by Disbursement Cate@ory (Us$ million)

______.IDA DANIDA WFP NGOs GVT BENEF TOTAL Mlao-lnfrastr. & Works 1.8 0Q 2.3 Vehicles and Equipment 2.7 2.7 NGO Services 1.9 1.9 Field Operations - Mico-projects 4.5 0.4 4.9 - Nutrition 1.0 1.0 Food 0.7 0.7 Consult.Services 2.0 2.0 Project ManagementiMonioriag 1.2 0.5 1.7 Project preparation (pilot phase) 1.0 0.4 _ 0.4 0.1 1.9 TOTAL 9.7 4.9 0.7 23 0.6 0.9 19.1

C. Procurement 4.4 The table below summarizes the project elements and their estimated costs and proposed methods of procurement.

Summaryof ProposedProcurement Arranaements (U8$ mlion eqivalent) ProcurementMethod

ProjectElement ICe LCB Other N.I.F. Total Cost 1. Civil Works 1.1. RuralInfrastructure 0.7 1.6 2.3 (0.6) (1.2) (1.8)

2. Goode 2.1 EquipmentNehicles 0.6 1.0 1.1 2.7 (0.6) (1.0) (1.1) (2.7) 3. Field Operations 3.1 Micro-projects 4.9 4.9 3.2 Nutrition 1.0 1.0 (1.0) (1.0) 4. NGO Services 1.9 1.9

5. Consultancies 5.1. Consult.services, training & studies 2.0 2.0 (2.0) (2.0) 6. Miscellaneous 6.1. OperatingCosts Management/Monitoring 1.7 1.7 (1.2) (1.2)

6.3. Food 0.7 0.7 6.2. Refundingof the PPF 1.0 0.9 1.9 (1.0) (1.0) TOTAL 0.6 1.7 8.4 8.4 19.1 (0.6) (1.6) 7.6) (9.7)

Note: Figuresin parenthesisare the respectiveamounts financedby IDA credit. N.l.F.: Not IDA-Financed - 25 - 4.5 All goods and services financed under the IDA credit would be procured in accordance with IDA guidelines. The M1KUis the agency respnsible for coordinating project activities, includingmost of the procurement. The same staff has been managing satisfactorily the IDA-fi4naced pilot phase for the last three years and has benefitted from procurement and disbursement seminars, gaining experience in goods procurement. 4.6 Micro-infrastructures. Contracts for office space, storage facilities, market rehabilitation,land development,rural works, village feeder roads rehabilitation and maintenance are of a dispersed and modest nature and are to be undertaken with direct coamunity participation. Individually, each contract should be less than the equivalentof US$SS,000and contractsin excess of US$30,000 would be awardedon the basis of local competitivebidding (LCB)up to a total of US$600.000.For LCB, standardbidding documentswill be used. The bulk of the contracts for micro-infrastructureswould be under US$30,000 up to a total of US$1.2 million and be executed by small enterprises, artisans and local communities organisedby the Woos on a labor intensive basis. Consequently, competitive bidding is not considered for contracting these works because they are small, labor based, and scattered. In these cases estimates would be sought from at least three contractors whenever practicable. 4.7 Contracts for vehicles and eaui2pent would be grouped into lots to the extent possible and those in excess of US$150,000 would be awarded on the basis of international competitive bidding (ICB) and of standard bidding documents. For such ICB, local manufacturers would enjoy a preference margin of 15i or applicable custom duties, whichever is lower. Local competitive bidding (LCD), using procedures acceptable to IDA, would be used for procurement involving contracts less than US$150,000 but greater than US$50,000, up to a total of US$1.0 million over the life of the project. Contracts for vehicles and small items of equipment under US$50,000, up to a total of US$1.1 million that cannot be grouped may be procured by local or international shopplng (inimum three quotations). 4.8 rleldOnerations would comprise a broad spectrum of activities to be undertaken with direct participation of the beneficiarles and NOO assistance in order to respond to the poverty alleviation objective of this projects a) for icro-projects strict eligibility criteria, included in the lmpleoentation Manual, would be followed for the selection of MOos (see Annex 4). Expenditures would be made against a contract betwsee MM3 and the sponsoring NOO, specifying the budget and the working program, no contract would exceed the annual amount of US$70,000. The main purchases to be made with the proceeds would consist in small equipment, material and supplies, small ruminants for fattening, soam construction material, training and the MOOs' operating costs. Material and equipment contracts would be less than the equivalent of US$15,000. The grouping of these purchases would not be feasible because they involve different operators and different beneficiaries in scattered areas. These purchases will be financed by DANIDAand procured through local shopping procedures acceptable to IDA. b) for nutrition activities it would comprise the operating and administrative costs for carrying out the nutrition component, contractual staff, travel allowances, transport and supplies. The nature of these expenditures does not involve procurement. 4.9 Consultants and technical assistance personnel financed by IDA will be selected in accordance with IDA guidelines for the use of consultants. Whis includes audits and accounting services, capacity building and Noos training, food security monitoring aud evaluation activities, implementation of a nutrition Information, Education and Communication program. given the specific nature of these activities,contracts would be awarded directly to institutions,MoOs or consultants satisfactory to IDA on the basis of work programs and terms of reference or in a competitive way from established short lists. Prior review would be required for contracts estimated to cost more than US$100,000 equivalent each. - 26 - 4.10 Proset- manacemont, including administrative coats, paymets for contractual staff, staff travel allowances, vehicle operation and maintenance, equipment and office costs, given their individual nature, does not involve procurement. 4.11 Local competitive bidding would include local advertising, clearly defined evaluation criteria, eligibility of foreign bidders, public opening of bids and award to the lowest evaluated bidder. IDA-financed works and goods contracts and blddiug packages estimated to cost over US$50,000, purchases of computer hardware and external tochnical assistance would be subject to prior review by IDA, as would the award of the contract. All ICB procurement will be subject to prior review. Random post reavew for contracts below threshold levels would be made out of certified Statements of Uxpeniutures (503) by IDA staff and for annual audits. Procurment would be reviewed by supervision missions for about 20% of the mlcro-projects. OMU would also audit ex-post mlcro-projects purchases made by N0O for field operations and compare prices with provailing market prices. noS may declare msprocurement and docline reimbursement of expendltures lf the agreed procedures have not been followed. 4.12 Procurement actions have overall performed satisfactorily for IDA- financed agrlcultural projects. Sample bidding documents have been established for Benin, and a new procurement code, reviowed by IDA in 1992, has been approved by the Government and ls expected to be adopted shortly by the Parliament There ls an adequate au"ber of small and medlum suxe contractors who meet the appropriate standards of performance.

4 * 13 Procurement information would be collected and included in the semiannual progress reports to be prepared by project sanagement so as to revise cost estimates and timing of procurement actions. The information to be provided includess a) contract award data; b) revised cost estimates for individual contracts and the total costs; c) revised timing of procurement actlons, advertising, bidding, contract award, and completion time for individual contracts; d) compliance with aggregate limits on specified methods of procurement; a) compliance of procurement with the implementatlon manual and systematic review of procurement procedures; and f) a completlon report by the government withln six months of the credit closing date. The project implementation manual deflnes procurement procedures in detail for better understanding and dlrect use by the implementinl agencies (OMM and Noos). The Project Implesentation Schedule is indicated in Annex 9. D. Disbursement 4.14 aiven the Government's limlted ability to pro-finance project expenditures, a special account denominated in cIa? would be opened in a commercial bank in Cotonou, acceptable to IDa. IDA would make an initial deposit of US$ 700,000 equivalent into the special account, covering 4 nonths of IDA- financed eligible expenditures, once the credit becomes effective. The special account would be replenished monthly, provided that requests are in excess of US$ 100,000 equiyalent. The project coordinator and the financial controller would be responsible for managing the special account and would be its signatory. 4.15 The disbursement profile for agricultural projects in Benin suggests that the project would be disbursed over a period of seven and one half years (see disbursement profile in Annex 10). all reimbursements would be fully documented except in the case of expenditures of US$ 20.000 equivalent or less which may be submitted on the basls of 8013 which must be certifLed by the project coordinator and the financial controller. All relating documents must be maintained on location in Cotonou for review by IDA's supervision mission and the external arditors. 4.16 The disbursement procedure for the Field operations would be based oanthe formal agreement signed between 34U and each sponsoring NOO. Each WOO - 27 - would be directly responsible for payments made against field operation budgets. Zxpenditures will be justLfied on the basis of invoices, 808 and suporting documents. Ilcoea generating activities would also be subject to an agreemt between the Neu and the beneficiary group, indicating the group*s contribution, which should be of at least 20% of the total activity budget. 4.17 The IDA credit would be disbursed as follows: ALLOCATION AND DISHURsNKENTO' T13 IDA CRUDXT

Amount I Financed by 1DA (US$ I ______Million) |icro-infrastr.& Works 1.5 So0 VehLcles,xquipment& Supplies 2.4 100% OperatingCosts - Nutrition 0.8 100% - Management/Monitoring 1.1 l00o Consult.services, Training 1.8 100l PpF 1.0 Amount due |Uallocated 1.1

Total 9.7 _ ___ B. Accounts and Audit 4.*18 In order to ensure rapid and efflcient establishmet of the accounting and finmcial system, an internationally known firm would be contracted as a condition of effectiveness of the credit for a period of two months to train the accountant in preparing regular financial reports and monitoring field activitLes Together, they would set up a computerized accounting and budget system to permit rapid consolLdation of project expenditures and breakdown of costs by site and by activity. Analytical accounting would be particularly useful as a tool to assess intervention costs and compare Noo advantage in carrying out project actionss. Further periodlc support of about one month per year could bo provided by the same firm. 4.19 The project accountant would be responsible for consolidating all accounts and keeping the records. oe would al'o ensure that the mGOs perform correctly the billing and receipt collectic and send them to the OMWas regularly as possible. The financial controsler would ensure that project expenditures conform to the regulations and expenadture authorizations included in the budget for the project sites, oversee general and cost accounting, and prepare the dlsbursemet requests. The MMU would have to ensure tbat the situation and performance of the cost recovery system is regularly reported ad would consolidate the information for presentation to the Coordination Committee. 4.20 Project accounts would be audited by competent independet external auditors, whose appointment would be a eondL01t of credit effectiveness. Audited accounts and reports would be submitted to the CoordinatLon Committee and IDA not later than six months after the end of each fiscal year. The auditor's report on project expenditures would include an examination of the documentation substantiating expenditures and a verification thats (a) project accounts permit identification of all receipts and payments; (b) goods had been received or work - 28 - performed; (C) payments had been made; (d) all expeniturs ad boee legitimte; and (e) the special account has been used appropriately; along with en oPinion oanthe reliability of the 80S procedures nd on whether tho goods and ervices acquired under the project were being utilised in accordance with its objectives. The auditors would also include the management report revealing possible shortcomings in staffing and systems, and evaluate the accounting systoe and effLciency of the internal control procedures. Auxugal8 in this regard were obtained during negotiations.

V. PROQM gJMKXAZIXQLAM MI A. OruanlxatioLn and Management 5.1 Project organization and manageamet draws oanthe lesons from the pilot phase experience taking into consideration the following main principlels a) project focus on the implementatLon of sound demad-driven development activities in support of rural group initiatives for food security and poverty alleviation in targeted areas; b) the specific approach of Goos,which requires management autonomy for implementation of the field operations with which they are entrusted; a) integration of project activities in the framework of the national development policy and food socurity strategy, and in support of the development of natioal information systems; and d) Governmt's role to monitor the food securAty situation and to ensure that public funds to be invested in the project are used in accordance wLth domestic legslation and wLth agreed ariterLa of sound financial and technical performance.

Plield Level 5.2 Field operations would be demand-driven an implemented by rural groups and village communities with the assistance of sle GOs and Developaent AssocLations acting as sponsors of grassroots developmet initlatives and micro-project proposals. Sponsorship of technical proposals and requests for financing could be submitted only by oligible support agency having a recognized legal status, demonstrated technical competence and satisfactory records of pest experience. activities should be a) in line with project objectives of improving the food security and nutrition situation and alleviate poverty; b) technically and economically feasible; c) replicable; and d) should strat the beneficiariesI interest through initial contribution, commitmet to recover the initial capital and capacity to maintain the inve sten (par. 3.14). Income generating activities would ensure that the cash flow is sufficient to cover all operating costs and to remunerate labor adequately. Eligibility oriteria and micro-project preparation and implementation procedures aro descrLbod in the implementatLon manual and summarized i annex 4.

5.3 Large autonomy would be delegated to the fLeld teams in support of communty developmeat. The EOO approach would be characterized by the active particLpation of project beneficiaries in the identification, preparation, and implementation of activities tailored to the specific needs of the targeted communities. 5.4 Before being submitted for appraisal and approval to the Management and Monitoring Unit (HUM), each intervention proposal by an NGOwould be reviewed by a local consultative group comprising representatives of beneficiaries and Village Association, the sponsoring *GO, the MinLstries concerned (MXM, Publie works, Health), local authorities and the project decentralized unlt (para.5.9). The group would have responsibility for reviewing the proposed activities and ensuring their adequacy with local developsent plans and coherence with other on- going operations. The decentralized project unit would assess project conformity with eligibility criteria and ascertain benficiaries commitment. 5*5 Each intervention proposal submitted by a sponsor could comprise - 29 - several micro-projects for different groups or communities in the same area. However, the total annual budget foz any proposal, excluding personnel costs (to be contributed by the MOO) would not exceed FCFA 40 million (US$70,000). individually, micro-infrastructure projects would not exceed FCFA 30 million (US$ 55,000). Financing for equipment or assets subject to cost recovery for income generating initiatives would not exceed CFAP 1.5 million (US$2,600) per beneficiarygroup. MU would evaluate each request on its merits, however, for micro-projectsbelow FCFA 7 million (US$12,000)the decentralizedproject unlts would be entitled to approve them locally. Any changes made during appraisal of a new operation would be explained to the sponsor of the proposal for aaendmets. If approved, a formal agreement including work programs and budgets would be signed between the sponsor and MMn for the implementation of the operations. The agreement would define a binding framework of collaboration and the obligation of each party. A sample form would be included in the Implementation Manual. Any new GOO would have to be approved by IDA. Asaurances in that res2ect were obtained at neqotiations. 5.6 The assistance and training to groups or individuals by MoOs would be articulated and coordinated with public extension work and should create opportunities for better knowledge of specific problems and needs at the community level and the possibilities to generate improved and move adapted techniques. In that respect CARDERextension agents would collaborate in the targeted areas with the NOOteams to establish a relationship of complementarity and mutual cooperation. The district agricultural officer (RDR) would ensure oversight of the operations oanbehalf of MDR. 5.7 Micro-infrastructure projects below IFA 3,500,000 (US$6,000), simple in nature and requiring mainly manpower investments for rehabilitation and maintenance, would be implemented under the responsibility of the community and the WOo. Works will mainly be undertaken through local craftsmen and villagers labor; food-for-work would be provided by WFP as required. For works costing more than FCFA 3,500,000,MNU would enter into contractswith small and medium scale enterprises.In both cases MU would make sure that the community and the XOO receive assistance from the provincial civil works public services (CARDBRor MTPT) as required and that the community is organized for the construction and maintenance. 5.8 The community nutrition program would be implemented in the field through nutrition-qualified MGOs and village community members. Selected MOVO would visit coamunities to explain the objectives of the program and help the community select a female nutrition agent and organize the implementation. Supervisors would regularly visit CNWs at a mutually agreed time for the amount of time required to make the community nutrition project work. Supervisory work would diminish in intensity with the progressive transfer of capacity and proven acquaintance of the CNWs with work requirements. Supervisors' work would be regularly reviewed and incentives would be discussed with the responsible MOO according to their performance in reducing malnutrition. A guidelines booklet for the use of NGOs and CNWs explaining the organization of the activities would be prepared by MIU in collaboration with DANAand participating MOOs before the start-up of nutrition activities. 5.9 Two decentralized project units would be established under the DMU, one for the Atacora and Borgou Departments and one for the Zou, Mono, Atlantique and ou4m6 Departments. Each one would be staffed with two professio"als covering sociological and agro-economic aspects, with experience in communlty developament. The main tasks of these units would be to get the project closer to the beneficiariesand facilitatetheir understandingof the proceduresand modalities required for their participation and for micro-project preparation and implementation. More specifically they would be responsible for: a) providing the information and sensitization required to potential beneficiaries and MOOs on project objectives, intervention and participation strategy; b) technically supporting micro-project preparation and implementation, providing early feed - 30 - back on the projectIa content and its suitability for fimnacing and facilitating appraisal and approval procedures; and c) organizing and facilitating field coordination with other agricultural support services (public and private) and local authorities. The NMU way also help technically and financially for the realizationof feasibilitystudies if required. CentralLevel 5.10 Central oversight of the project would rest with the Ministry of tural Development through ONASA, including overall monitoring of the food securitysituation in the field,updating and maintainingmarket intelligence and information system. Given the joint-venture nature of the project and the number of parties involved, a Coordination Comittee would be established as a condition of Credit effectiveness to ensure overall coordination and maintain the dialogue between the Government and NOos in the implementation of project activities. The Committee's would compriserepresentatives of the concernedMinistries, project financiers and 0oos;lt would meet twice a year. The Committee would not have operational responsibilities in project management. The Director of Analysis and Planning in MDR would be its President on behalf of the Minister, and the ONASA Director its secretary. Its main tasks would be to: a) share information on the progress in implementing project activities, examine the results on the basis of MUIs progress report and make recommendations, b) enforce compliance by Moos and MUU with their respective legal obligations and ensure proper use of funds; c) review and approve proposed annual programs and budgets for field operations and for the MMW,and d) ensure consistency and relevance with other on-going project activities within the overall national strategy. Specific problms exceeding the responsibility of the WMM would also be discussed including possible arbitration on conflicts that may arise among the different parties. 5.11 Coordination and support of MOOoperations, project management, accounting, administration and monitoring of field activities would be entrusted to a small Manaaement and Monitoring Unit (RMU) within ONABA. Competent staff with qualifications, experience, terms and conditions of employment satisfactory to IDA would be appointed to NW as a condition of oroieat effectiveness. Asurances were obtained at negotiations that the MNU and the Coordination committee would be maintuined for the duration of the project. 5.12 The MM,Ws role is necessaryby the nature of the approach and the need to provide technical and administrative guidance and support in the selection and implementation of field activities by the NoOs. The main tasks of the Unit would be tot a) authorize expenditures, carry out financial mawagemnt and accounting, programming and budget preparation; b) ensure technical and financial coordination and support of field operations and adherence to the implemetation manual by the NGos; a) carry out regular field supervision and support missions and organize contracting of consultants for technical and financial assistance, training and annual audits; d) ensure proper monitoring and evaluation of field activities, directly and through the other official structures concerned (ONASA, DANA, CARDERs, UMB); e) appraise and approve the proposals for the financing of micro-projects together with the decentralized units, and sign the formal agreements with the MOos; and f) ensure centralization of MoOprogress reports and prepare its own, for submission to the Coordination Committee and the donors concerned. The head of the Unit would provide the technical and administrative support to ONASAin its role of secretariat of the Coordination Committee and help prepare the documentation to be reviewed by the Comittee (programs and budgets, balance sheets, monitoring and progress reports, etc.). 5.13 hMM has prepared in collaborationwith IDA a draft implementation manual describingcriteria and mechanismsfor submission and implementation of micro-projectproposals to be financed by the project in the course of its lmplemetation. The manual defines the main principles of aicro-project preparationand implem,ntation,type of activities,eligibility criteria for the - 31 - beneficiaries and the NOOs, financing mechaism, procurement and disbursement procedures, and the functioning of the cost recovery system (para. 5.15-20). A workshop was held during appraisal with representatives of the Government and NGWs to discuss and agree on the main principles and content of the manual (minutes in Annex 2). A second workshop has been held in October to review the draft manual before formal negotiations. With the receipt of the draft manual the respective condition of negotiations has been met, and its content has been approved by ZDA and the Government during negotiations. S.14 A formal agreement would also be signed by the MUWwith nutrition- specialized Goosor training centers for the organization and implementation of the nutrition component and training program. This includes the organisation of the community nutrition program in the areas of interveation, preparation of nutrition messages and packages to be conveyed to the targeted groups through the selected NGOs, training for the community nutrition workers and their supervisors. Coordination and support would be a collaborative effort of the IOU's nutritionspecialist, DANA and its decentralizedpersonnel in the CARDIRs, the Ministry of Health and the Ministry of social Affairs through Cathwel. S. Cost Recovery 5.15 The only credit facility officially existing in rural areas is the rural savingsand loan cooperative network (FCECWA), operating under autualistic principles, with strict credit policy and eligibility criteria. Most of the credit is for short term needs. Access of the targeted groups to this savings and loan network is limited. The stringent eligibility requirements of the vaczcax system and its credit policy in terms of interest rates, initial mandatory savings and required creditworthiness would initially exclude most of the beneficiaries of this project, who belong to the poorest segments of the population. However, NOOs would promote the establishment of ties between each group and the local savings and loan branch (CLCAM)to foster progressive and sustainable integration of project beneficiaries into the existing credit network for short term credit needs. The project would particularly encourage registration of the targeted groups in the local CLCAE and promote the establishment of small savings and loan groups. Project activities would help address the needs of disadvantaged communities during a transitional phase before they can have access to an official financial intermediary system and hence enlarge the scope of the network's activities. A formal agreement would be passed between the UmUand F3C3Ca6 so that they would train the project beneficiary groups in simple managemeat and accounting procedures and explain the principles and mechanisms of the mutualistic approach. 5.16 The project will provide grants only and will not act as a lending agency. However, for incAone generating activities benefiting selected groups, the NGOs would set up and manage a credit scheme in order to have a rvolving fund and ensure sustainability of the activities and programs. A contract would be signed between the sponsoring MGO and tho beneficiary group defining the respective rights and obligations of each party, including definition of the group's contribution (para. 3.14) and repayment mechanisms. Cost recovery, with adequate interest rates, would be the general principle to be applied for the financing of income earn"ig micro-projects. its scope would encompass the cost of assets required for the establishment of the activity and the small credits needed for the operations. 5.17 Only groups which do not have access to the CLCANnetwork would be eligible for seasonal credit. Cost recovery mechanisms and interest rates would be fixed in collaboration with the CLCAMnetwork to ensure a consistent and - 32 - progressive approach towards integration into a permanent credit system ft. Insistence on a market rate of interest from the start would defeat the objective of income transfer or support to income generating activities for food security and poverty alleviation of the most vulnerable segments of the populations in areas at risk. S.18 An account would be opened in the local CLCAXin the name of the sponsoring KoO, where the beneficiary group would reconstitute the initial capital cost, including adequate interest rates. Savings would accumulate through payments calculated at replacement cost, inflation being estimated at about 3% per year, interest oandeposits at the prevailing CLCAMrate (currently 3%), and the useful life being estimated conservatively. The repayment schedule, to be specified in the contract, would be determined according to the nature of activities and to the agricultural calendar but would not exceed 3 years. Transactions on the account would require two signatures from the sponsor and the IOU. Once the cost of the investmet has been completely recovered, funds would be used for another initiative or micro-project, for the same or another group. MMU would keep approval authority for continuation of the activity or initiation of new ones. 5.19 In case of default in refunding,responsibilities would be assessed and no further financing would be provided to the group or the MoO, the equipment would be repossessed and group collateral seized as specified in the contract betweenthe group and the sponsor. The INU would decide,according to prevailing circumstances,on the use of funds already deposited. Description of the functioningof the cost recovery system would be contained in the implementation manual and prior agreement would be a condition for each micro-project approval. 5.20 For each sub-project, the sponsoring NGOwould keep the accounts and report on the cost recovery situation to the MM who, in turn, would report to the Coordination Committee semi-annually. The WMM would also provide assistance to each NOO for training the user groups on the concept and functioning of the cost recovery accounts. C. Monitorina.Evaluation and Renortlnig S.21 The head of the RMM would be responsible for sonitoring project execution, including the proper implementation of activities and achievement of objectives. Be would prepare a semiannual progress report, to be submitted to the Coordination Committee and IDA, indicating the implementation progress and institutional and budget status of the project in relation to a previously approved annual program of operations. External assistance in setting up a financial and accountant monitoring system would be provided at the start of the project with periodic annual support (para. 4.17). The head of WNUwould also prepare, for the approval of the Coordination Committee, annual work and training programs and a Project Completion Report (PCR) within the six months following the IDA Credit closing date. Assurances in this regard were obtained during negotiations. 5.22 A simple central and field monitoring system would be established, together with key monitoring indicators to cover technical and budgetary aspects (see Annex 7). Monitoring will refer to the day-to-day supervision of the progress made towards delivery of goods and services, construction of infrastructures, disbursement, compliance with reached agreements, etc... Monitoring would therefore be considered as a *process" oriented task and as a follow-up of "inputs" aiing at verifying whether the project is implementing the

i/ The presentCLCAM short term interest rate Is 24% per year.It isconsideed beneflcbrygroups benefiting from Income generatingactivtes wouldprogressively join the CLCAMafter aboutthree years; the Iitdia rate wouWbe of at least 12%. No mediun term creditIs presentlyprovided by the CLCAM network. - 33 - intended interventions as planned. in addition, the degree of bonefLciary ownership and involvement in the decision-making process related to micro- projects preparation and implementation would be assessed as a prerequisite for continuation and sustainability of the activities. The supporting Noos would submit progress reports every six months focused on actual implementation of proposed actions compared to targets. Regular NM1 field supervision missions would also monitor physical execution. Implementation of the income generating activities and the performance of the cost recovery system would be closely monitored by MNU, on the basis of standard forms and note books to be maintained by the GOO sponsoring the operation. The specialist in charge of monitoring in the MMU would have to consolidate and analyse the results. 5.23 Evaluation will refer primarily to the impact of the project on the beneficiaries according to pro-established indicators and gauge progress towards the achievement of project objectives. It is therefore an "output* rather than "process" oriented approach. Evaluation of project impact would be external and entrusted to the University of Benin in collaboration with specialised institutions (DANA, CRDZESA, etc.). A sample of micro-projects and nutrition interventions would be selected and an initial baseline survey would be carried out to provide benchmark socio-economic and nutritional indicators. On that basis, together with the monitoring information collected by 1MU, a final survey would be undertaken at micro-project completion to carry out the evaluation. 5.24 The project would support ONASA expand its monitoring activities from the present coverage of 15 primary markets to 13 additional secondary markets located in project areas. This information would enhance relevancy of the information already available and would help evaluate project impact in selected areas in terms of food access and stability. The NDR's Sectoral Analysis and Planning Directorate (DAPS) would also be involved and participate in monitoring project activities on behalf of MDR, as part of its role of overall agricultural project planning and coordination, and ensure coherence of project activities with sectorial strategies and other projects.

5.25 Implementation of field activities would have to be flexible. Because of the in-built participatory and demand-driven approach, details on locations, type and number of investments are difficult to foresee. The implementation timetables would have to be adjusted annually to respond to the demand of the communities (see Annex 10).

5.26 WOO performance would be assessed yearly, when approving budgets and working programs, on the basis of progress sade in achieving targets and ensuring beneficiary ownership. If an NOO is not performing satisfactorily, a justified decision will be made by the Coordination Committee, after proposition of the WUU, regarding the continuation of the WGO's agreement. 5.27 A supervision. schedule is presented in Annex 11. Assurances were obtained during negotiations that a mid-term review would be carried out at the latest three years after the credit signature, by an outside team of experts in collaboration with IDA and DANIDA. The DAPS would participate and represent the Goverment during the review. 5he recommendations, once approved by the Government and financiers, would be implemented as soon as possible. The review would cover Later-alias (a) project management; (b) progress made in moitoring and evaluation and a first assessment of project results and impact; (c) implementation of field activities according to schedule; (d) performance of the NOO teams in supporting local initiatives and functioning of the cost recovery system; (a) financing of new studies and programs identified during project implemetation; (f) effectiveness of the preparation and selection process; g) possible extension of the project's scope to new areas; and h) cooperation between Governmental and non-Governmental Organisations, and the project institutional set-up. IDA resident staff and supervision missions would also play a catalytic role in maintaining and expanding the dialogue between the Government and NGOs, and provide necessary support. - 34 -

VI2 ADEFITS AMDRISKS A. Excected Denefits 6.1 The nature of this project's approach and its objectives in term of expected improvement in the food security and nutritional status make the formal quantification of benefits uncertain. Moreover, project impact on poverty reduction would have a spill-over effect on larger areas than the targeted ones and on the rest of the economy. Similarly, the cost to the economy of localized but relatively important food insecurity situations and subsequent malnutrition, morbidity, and rural exodus cannot be assessed. A financial evaluation has been carried out for the main type of activities proposed by the projects 1 ha bottom- land development, 0.4 ha of vegetable garden, cassava processing unit, establishment and management of cereal banks, pisciculture, feeding of small ruminants (Annex 5). They generally show a rate of return ranging from 20% to more than 50% and labor remuneration increasing by 50% to more than 100%. Direct inducements, financing for income generating activities, village infrastructure, rural works, and food for work are justified in view of national objectives for food security, poverty alleviation and sustainable resources managemet. 6.2 The principal benefit expected from the project would be the reduction or the eli4ination of the factors conducive to food insecurity and malnutrition in the targeted sites of project intervention. Most benefits would have a direct on-the-ground visibility. Land development, diversification and better product conservation would enhance food supply, smooth out before-harvest shortages, increase producer incomes, and increase production and consumption at the village level. Crop processing, marketing, and new income generating activities would reactivate local initiatives and economies. Small infrastructure and better access to enclave areas would facilitate village integration into regional economies. Some activities would have a longer term impact. Natural resources management, tree-nurseries, agro-forestry and anti-erosion techniques would require longer tine for relevant evaluation but yet appear in some areas as the main priority.

6.3 Particular focus would be in direction of activities of women groups, which are already the main actors in crop production, food processing and marketing. Reduction of women labor constraints, interventions for their better education and increased attenxtion to family and particularly child feeding would improve family nutritional status and would generally set the basis for a more responsive environment. Similarly, training related to better access and use of drinking water would have a positive impact on health by reducing risks of contamination and improving hygiene standards.

6.4 The project would intervene in about 20 "sous-pr6fectures", and field activities would directly reach some 15,000 rural households or about 100,000 people in diversified rural areas. Furthermore, small infrastructure works are expected to have a broader impact and expand overall project beneficiaries to about 300,000. The community nutrition program would directly monitor growth of about 48,000 children up to 5 years of age and about 20,000 lactating or pregnant women. Through these interventions the malnutrition rates in project areas are expected to be reduced from 30% to about 21%, or about 300 reduction (see Annex 6).

6.5 ln addition to the direct benefits to targeted populations, the project would contribute tot a) a better knowledge, description and localization of food insecurity situations; b) the developmet of hand-on experience on ways and tools permitting appropriate and replicable actions to address identified constraints at the local community level; c) the monitoring and evaluation of food security related indicators and a permanent definition, updating and implementation of food security strategies; and d) the preparation of a national nutrition strategy. The institutional approach adopted by the project would develop partnership and complementarity between public services and decentralixed - 35 - decision making by Goosin support to local communities. Community organization is indispensable for the implementation of certain activities which individuals could not undertake without mutual help. Within such a framework, collaboration between NOOs and extension services would develop new opportunities for better addressiag specific problems and in promoting community-based initiatives. S. Financial Implications for Government 6.6 There would be no directly generated revenue for the Government since none of the project outputs are commodities on which taxes are levied. However, by increasing beneficiary incomes, it is expected that the project would contribute to agricultural growth and to an increase of expenditures on consumer goods on which indirect taxation is applicable. Activities initiated by the project would be continued by the rural communities themselves with or without XGO support. Further NGO assistance or expansion of activities in other areas would depend on their ability to attract sources of financing (public, private or rural communities), but would be neutral with respect to the Government's recurrent budget. The ability to mobilize community-based resources for local development would lead to a greater sense of local ownership and the sustainability of the activities at the ground level. c. Environmental Imoact

6.7 The project would not entail any potential onvironmntal risk. To the contrary, some of the proposed activities would contribute to better natural resources anagement and conservation through agro-forestry and anti-erosion activities. Moreover, by intervening in the poorest areas of the country and by promoting the development of new initiative and income generating activities, the project would contribute to poverty alleviation, limit rural exodus and i' in line with the objectives and strategy defined in the recently completed NatAonal Envirounental Action Plan. The environmental category of this project is C. D. Risks 6.8 The pilot phase has helped considerably in better understanding and addressing possible risks in project implementations which may stem frosm a) changes in attitude and relationship, or lack of coordination and understanding between NGos and the Government deriving from the relative isolation of NMOs in the implementation of their activities or in possible excessive Government interference in project activities; this will be ainiaized by i) setting-up mechanisms of collaboration between rural communities, NGOO, public and private services, and local authorities, in micro-projects preparation and implementation procedures to promote exchange of information, sharing of experiences, coordination and better integration of activities within a broader development strategy; $$) maintaining a project management unit with people from the private sector; and iii) promoting the dialogue between Government and MOOs through regular coordination meetings at the central level for maximu transparency and developing the basis for further opportunities of collaboration and partnership, IDA resident staff and supervision missions would play a catalytic role in this respect; b) the emergence of opportunistic NGOs with different agendas from those of the beneficiaries and possible managerial and technical weaknesses of EGOs deriving from their relative inexperience and difficulty in complying with required admi"nstrative and financial procedures and discipline; this risk would be mitigated by i) the strengthening and enhancement of the Management and Monitoring Unit which would now be decentralized and would provide technical, financial and administrative support to the MOOs in the field; $$) the establishment of an Implementation manual defining the procedures and steps to be followed for micro-project preparation and - 36 - imlemetation to be discussed and agreed upon with the Government and the X0Gs before projest starts; and iii) the pre-selection and trainiag (already initiated under the pilot phase) of qualified NOs according to criteria of experience, acquaintance with the zone and the comunities, deonstrated capability and comitment in sponsoring the activities of local groups; c) the slow implemetation of the cost recovery system due to the newness of the approach, slack monitoring and insufficient appraisal of micro- project feasibility; elements of improvemet for better sustainability, compared to the pilot phase, have been introduced in project design in terms of 1) contractual arrangemets between the GOO and the group; ii) better control and monitoring of reimbursed funds including default clauses with possible exclusion of the group or the Eoo f rom further support; iii) ensuring beneficiariesI commitsment to the investment through their initial contribution and participation and by permitting rotation of recovered funds at the local level for the same or another activity; and iv) farmer/group training and outreach to sensitixe and explain the mechanisms of project appraisal and cost recovery; and d) possible institutional conflicts in the attribution of responsibility for the coordination of nutrition activities, due to the number of agencies and Ministries involved in nutrition interventions; this risk will be mitigated by i) the financing of a national nutrition strategy to better define institutions' role and national priorities; and ii) ensuring coordination of EGo field interventions with existing decentralized structures and activities.

VIZ. A-RZTS AND RXCOHN3NDIMAONS 7.1 !he following assuranceswere received during negotiations: (a) at least 50% of the financing allocated to income generating activities would be reserved to groups entirely constituted by women (para. 3.15); (b) project accounts would be audited by competent independent external auditors satisfactory to IDA and their reports submitted to IDA for review, at latest in the six months following the close of the fiscal year (para. 4.20); (c) selection of now ENOs would have to be approved by IDa (para. 5.5); (d) no6 and the Coordinating Committee would be maintained for the duration of the project (para. 5.11); (e) 1MM and selected MGos would prepare a semiannual progress report, indicating the implementation progress and the cost recovery situatio. 11W would also prepare, for the approval of the Coordinating Comittee, annual work and training programs and a Project Completion Report (PCR) within the six months following the IDA Credit closing date (para. 5.21); and (f) a mid-term review would be carried out at the latest three years after the credit becomes effective, by an outside team of experts in collaboration with cofinanciers and IDA. Its recommendations, once approved by the Government and IDA, would be implemented as soon as possible (para. 5.27). - 37 - 7.2 Conditions of effectivenesso (a) an intenationally know firm would be contracted for a period of two months to net up a computerised accounting managemet and monitoring system and related training (para. 4.18); (b) comptent idpet external auditors would be appointed (pra. 4.20); (e) MW's professionalstaff has been appointed with qualifications, experienceand torms and conditios of em7lolmentsatisfactory to iDa (para. 3.28, 3.29 and 5.11); and (d) a project CoordinationCommLttee would be established comprising reprosetatives of the Ministries,the Moos and the donors concerned (para. 5.10). 7.3 With the assurancesand coaditionsmentioned above, the project would be eligible for an IDA credit of am 7X.1aillion (us 9.7 million equivalent). 39 - ANNEX Page 1 of 6

REPUBLICOf BENIN

COMMUNITY-BASEDFOOD SECURITYPROJECT

NationalFood Security Situationand Policy

A. Current Food SecuritySituation

1. Beninhas achieveda high degree of food self-sufficiencydue to sustainedgrowth in food productionat an overallrate comparableor above populationgrowth of 3.2%. Trotalfood production in Benin is theoretically sufficient, in the aggregate, to cover domestic neAs. However, despite this relativelyfavorable situation, the food securityobjective of providingaccess by all people at all times to enoughfood for an active and healthylife is not reached. About 18% of Benin's populationand 30% of the children are consideredto suffer transitorily or chronicallyfrom insufficientfood intake or other forms of malnutrition.While food insecurityin Benin is far from being as serious a problem as in the Sahel countries or other regions suffering from unfavorablenatural conditionsor major conflicts, the percentage of malnourishedpeople is significandyhigher in Benin than in other neighboringcountries of coastal West Africa with similar climaticand physical conditions.

2. The main populationgroups and/or areas at food security risk are: a)low income nrral populations,in areas wherefood supplyis in deficitand agriculturalproduction insufficiendy diversified, with limited opportunitiesfor alternative employmentand often a poor infrastructure and a weak commercialnetwork; and b) the urban poor, who have few employmentopportunities and suffer from the highest infant malnutritionrates in the country. In rural areas, limited access to food is mostly seasonal and usually occurs a few months before harvest. Pockets of more severe and chronic food insecurityare located in: (i) some enclavedareas in the northern part of the country, where the lack of adequate communicationis compounded by poor soil quality and a high degree of erosion; (ii) overpopulatedares in the south, where land holdings are small and increasinglyfragmented and severe soil degradationis taking place; and (iii)coastal areas, where fishermenare experiencingdepletion of the resource base with little diversificationopportunities.

3. 'Me lack of incomesources and financialmeans, combinedwith weak distribution systems in remote areas, are the main constraints in accessingfood supplies in adequate quantity and quality. Domestic food prices for main staples have shown a distinct decliningtrend over the last 10-15 years, with a concomitantreduction in food costs for urban consumers. Ibis, however, has had litde or no positive effet on food security in urban areas, as employmentopportunities have remained extremely limitedand urban wages have also been on a decliningtred. The decliningprofitability of agricultural production, at least in those areas where no major export crop such as cotton can be grown, has contributedto a significantout-migration from nrur to urban areas; in the absence of any significant developmentof alternativeemployment opportunities, this ha, translated into an increase in the number of under-or unemployedpeople in urban areas, who experienceserious difficuldties in obtainingadequate access to food. - 40 - ANNE&I Page 2 of 6

4. Decliningprices for food crops are explainedby a combinationof factors. In the late 1970s and first half of the 1980s, substantialquantities of food products (mcludingyams, cassava and maize) were exported to neighboringNigeria, where the oil boom had translated into a significant increasein food prices and consumers'demand together with a marked declineof the agriculturalsector. From the mid-1980sonwards, economicdifficulties in Nigeria resulted in a decrease in consumers' demand and purchasingpower which, together with successivedevaluations of the Nigerian currency, led to a substantialreduction of food importsfrom Benin. Sincethen, the monetaryand economicpolicies adopted by the Nigerian Governmenthave fostered a resumptionof agriculturalproduction in Nigeria, together with a decrease in food prices expressedin CFAF and a reductionin the competitivenessof Benin's food production.Food imports (e.g. maize)from Nigeriato Beninare not uncommon.The unit prices of rice and wheat flour imports on Benin's market have also been on a decliningtrend which, together with the low purchasingpower of most urban consumers,leads to increasedcompetition for domesticfood productionthus pushingits prices downwards.The recent devaluationof the CFAF will offer new market opportunitiesby renderinglocal productsmore competitivefor export and permitting the developmentof more traditionalcrops on the domesticmarket by substitutingfood imports which would now becomemore expensive.

5. In rural areas, low food prices only benefit those producers who have alternative productionor incomeopportunities and who possiblygrow cash crops to purchase food. Li areas where food crops are the major or even the sole agriculturalproduction opportunity, low prices lead to the sale of an increasedshare of productionin order to meet the farmers' incompressiblemonetary needs. As the productivecapacity is quitelimited under the prevailingrudimentary hand-labor techniques, this translates in somecases into serious restrictionsin the quantitativeand qutlitative food intake of the producer and his family. Indebtednessand/or other pressing monetary needs also lead to a disproportionateshare of productionbeing sold immediatelyafter harvest, at a time w'i a prices are at their lowest, only to face later in the seasonthe need to purchasefood at a muchless favorableprice and credit conditions.Storage constaints, particularlyin the south where conservationis made difficultby the humidity and insects, also hamper the farmers' capacityto store their uroductionfor home consumptionand/or sale at a more favorabletime of the year.

6. Seasonalprice fluctuationsare quite high, particularlyfor maize and other cereals. This reflects both the limitedstorage capacityat farm level, and the commercialpractices of food traders and other intermediariesin the food trading chain, who are often short of workingcapital and try accordingly to achievethe highestpossible rotation of their food stocks.These large price fluctuationshave a negative influence on food security, as low income consumers are particularly hurt by large seasonal price increases. The producers' incentive to invest in agricultural intensification,food production and/or processingfor the market is also reduced by the high commercialrisks involvedin these activities.

7. In the long run, achievingdurable food security in Benin will depend primarily on the adoptionof appropriatemacro-economic and sectoral policiesthat would be conduciveto improvements in the competitivenessof the economy and in the productivity of labor for food crops and other agricultural products, while at the same time fostering the emergence of alternative employment opportnites both in rural and urban areas. The recent adjustmentof parity of the CFAF will go a long way in fosteringthe path to restorationof competitivenessof domesticproduction and growth. Education of womenand girls for better populationcontrol as a way to promote more demand for familyplanning measureswould also be importantfor long-termfood securityand generalpoverty alleviation.In the short and mediumterm, measuresthat would contributeto the alleviationof food insecurityfor those segments - 41 - AN I1 Page 3 of 6 of the populationwho are most at risk should aim in particular at: () restoring the productivecapacity of the most impoverishedproducers and consumers,by helpingthem to invest in small scale production, processingand serviceactivities; and (ii) improvingthe fluidityand stability of food markets, in particular through improvementsin the communicationnetwork and in the circulation of market information, developmantof on-farm and village-level marketing, credit and storage facilities, and measures to facilitatethe activitiesof private trade operatorsand encourageincreased food trade amongthe countries of the region so as to promoteprice stability.

B. NationalFood Scurty Policy and Institutions

8. Until the early 1990s, the concern of Benin's Governmentfor food security was mainly focused on the problem of periodic droughts and on feeding the urban population at a low price. Throughoutthe 1970sand 1980s, the Governmentmade several attempts to control food markets and prices, mainly for the intended benefit of urban consumers. These effbrts were, however, quite unsuccessfuland food crop marketinghas alwaysremained largely in the hands of the private sector, with prices set accordingto marketforces. Adminishive hassles,road controls, and cumbersomeregulations or prohibitionsnonetheless prevailed until the late 1980s,thus contributingto high transacton costs. Food crop marketingwas officiallyliberalized in October 1988, but in practice this change took effect only very graduallyas Governmentagents and/or local authoritieshave cotinued to try sporadicallyto control the circulationand in some casesthe prices of food products.

9. The far-reachingpolicy changes introducedin Benin from 1990 onwards have led to a redefinitionof the role of the public sector, in the contextof a liberal economywhere the major role of the private sector in food marketingis now clearly acknowledged.The strategicchoices adopted by the Ministryof Rural Development(MDR) have been stated durminga seminar on the strategy of the rural sector held in Cotonou in July 1990, and further confirmed in a letter of rural development policy (LRDP) signed by the Minister of Rural Developmentin May 1991. The role of the State has been redefinedin the contextof the structural adjustmentprocess, with a retrenchmentinto public functions and a withdrawalfrom most direct production, marketingand credit activities.According to this policy statement,the main objectivesof the Beninese Government'srural developmentpolicy will be to raise living standardsby winningmarkets for and improvingthe competitivenessof Benin's small farmers. Combatingfood inseity in the more vulnerablegeographic areas and smoothout the 'hungry period' price peaks has also been singled out by Governmentas one of its main policy objectivesin the LRDP of May 1991, with a focus to the marketing and processingsector. Particular emphasishas been given to: opening up and mantning ruril roads; relaxingcusoms and export proceduresmd improvingthe disciplineof the road contol services; developingtechniques and financial instrumentsto facilitate processingand storage of agrictural food productson the farm and at all stages the marketingchain; regional integration of agricultura markets and their protection, where appropriate, against imports subsidizedat origin; and installationof a systemof supportfor exportersand local dealers, includingin particular a system of continuousinformation on domesticand world market prices. These measures would all be tonducive to improvementsin the domesticfood markets and a reductionin the instability of food prices.

10. The Governmentis also promotinga policy environmentconducive to private sector operationsin the distributio, marketing,transport and credit systems.The Governmentis also aware of the growing importanceof NOOs in interveningin support of grassroots activitiesin the food security, nutritionand health sector. - 42 - ANEX Page 4 of 6

11. The variouspublic institutionsput in place by Governmentin the mid-1970sfor domestic marketingof food products had closed down by the early 1980s, as a result of insufficientfunding, mismanagementand stiff competitionfrom informalprivate trade both domesticallyand with neighboring countries. This led to the establishmentin 1983 of the NationalCereals Office (ONC), which was in charge of ensuring an adequatesupply of cereals to the consumerswith a main focus on urban areas. ONC's initial mandatewas to regulate the domesticmarket through purchase, storage, processingand marketingof cereals, to ensure the managementand distributionof food aid, and to advise Government on food security issues. ONC was, however, never in a position to fulfill its regulatory function. Its maize purchases,done mainlythrough the CARDERs,reached a maximumof about 7,600 tons in 1985 or less than 3.5% of the domesticmarket and quicklydwindled thereafter to less than 200 tons per year duringthe 1988-90period. Lack of funds was also associatedwith technicaldeficiencies resulting in high physical losses. ONC's storage capacity of more than 37,000 tons was never significantlyused for its initialpurpose, and its metallicsilos turned out to be largelyinappropriate for local commercialpractices and climatic conditions;the Bohiconmaize mill with a processingcapacity of 30,000 tons, also under ONC's management,was never put in operationas its completionappeared to be financiallyunviable despite substantialsunk costs.

12. From 1987onwards, ONC's activitieshave been in fact quite limitedin comparisonwith its original mandate, and centered mainlyon the conductof various studies and the establiQhmentof a data collectionsystem with the help of external donors:

(a) In 1987, a food security study fiuded by FAO concludedon the need to improve food marketingconditions; reorganize the ONC from a food marketing,storage and processing agency into a marketinginformation and assistanceagency; establish an early warning system;set up villageand farm level cereal storagecapacity; and prov; .e creditto private traders.

@b) The FAO-assisted Early Warning Project", which started its activitieswithin ONC in 1988with Norwegianfunding, has collectedvaluable information on the prices, markets and trade flows of food products throughout the country. It has helped establish a permanent system for monitoringthe prices of food crops on 15 main markets, with publication of a monthly bulletin describing production and market trends. The monitoring of production and prices covers the 7 main food crops of Benin (maize, sorghum/millet,rice, cassava, yam, bean and groundnut). The monthly bulletin is, however,often publishedwith somedelay, and the main recipientstend to be the various ministriesand externalaid agencies.Starting in 1992, efforts have been made jointly by ONC and the CARDER-Borgouto disseminateprices on a wider scale and on a more frequentbasis, by usingradio broadcastservices and placardingweekly price information on marketsand other strategicplaces. This service has been appreciatedin particularby producersand consumers,but its effectivenessremains limited and more shouldbe done in order to broaden the diffusionof price informationas a tool for promotingimproved markettransparency and facilitatingthe operationsof traders and other private operators.

(c) The German bilateral aid (G0Z) has provided technical assistanceto ONC from 1989 onwards for an initial period of two years, in order to help define a coh'zent national food security policy taking into account the new liberal policy ciientations of Government.A total of 19 studieshave been completedon specificsubjects, whichhave contributedto an improvedknowledge of Benin's food security sitation and in particular -43 -A- Page 5 of 6

the functioningof its food marketingsystems. Assistance has also been providedto ONC in its restructuringprocess (para. 13 below), and a general cartographyof food secudty issues in Beninhas been produced.

13. In this context, the missionof ONC has been redefinedand it has been restructuredby a decree of September23, 1992, whichformally endorsed a study of ONC's restructurlg done in 1992 on the basis of the analysiscarried out with the help of GIZ. Rather than trying to regulate the market throughthe constitutionof rarely needed and costiy 'strategic' stocks, as had been the case in the past, the new agency - now called National Office for Food Security Support (ONASA) - will aim at facilitatingthe commercializationof food crops by private operatorsboth within the coutry and at the regional level, and focus on the consolidation,analysis and diffusion of food security information collectedby various entities.ONASA will thus be mainlyresponsible for managinginformation on food prices, markets and productiontrends, as well as specific data on vulnerable groups; it will retain its advisoryfunction to Governmenton food securityissues and continueto manageeventu food aid from extal donors, while expanding its advisory and information functions for the benefit of private operators. Storage,on the other hand, wiUlnow be mainlyenusted to the private sector at village and/or traders' level.

14. The preparationof a ComprehensiveNational Food SecurityProgram (PNCSA)was also undertakenin 1992-93with FAO assistanceby a team of national and inteational consultants,under guidance from the National Committeefor Food Security Coordination (CNCSA) which has been establishedby Governmentin March 1992. This study, which was debatedby a large audienceduring a seminarheld in Cotonouin May 1993, emphasizesthat very few concreteactions have been undertaken so far in favor of population groups who are at food security risk, both in urban and rural areas. Accordingly,the PNCSA focuses mainy on areas and populationgroups at food security risk, and provides a comprehensivelist of actions and programsto be undertakenin order to:

(a) foster increasedfood productionby householdsat food security risk in identifiedpriority geographicalareas, mainlythrough the introductionof susainable technicalimprovements in existn productionsytems, improve land tenure security, developmentof farmers' organitions and improvementof technical services, and promotion of fisheries and small livestockproduction;

(b) stabilize food supply and prices in areas at food security risk, mainly through improvementsin storage and crop managementat farm and village level, development of local markets and improveddiffusion of price and market information,construction and maintenanceof feeder roads; and

(c) improve access to food supply and to better diets for these populations/areas,both through short term actions (developmentof alternativeincome sources in mral areas, promotionof labor-intensivepublic works in urban areas, developmentof small scale food processing activities) and in a longer term perspective (nutritionaltraining and family planningprograms, improvementof living conditionsin mrualand urban areas).

These actions and programs are to be implementedboth by public and private entitiaes,with a significant contributionexpected from NMOsand other privateoperators. A participatoryapproach will be adopted, with a main focus on women given their crucial role In ensuringhousehold food security. The study emphasizesthat main pre-requisitesfor ensuring PNCSA's success would be a broadening of credt - 44 - ANNEXI Page 6 of 6 access, increasedregional intgration between the food security policies of Benin and its West African neighbors, and adequate coordinationbetween the various national entities Involved in food security issues.

1S. Aside from ONASA,te other main Governmentinstitutions Involved in food sewrity within the Ministryof Rural Development(MDR) includethe RegionalAction and Rural Development Centets (CARDERs),which are in charge of rura developmentactivities in the field and are currenly undergoinga process of restructuring,and the Food and Applied Nutrition Directorate (DANA). The latter is mainy responsible for monitoring the country nutitional situation and preparing nutrition rehabilitaton schemes; it has also embarked into production activities and manages a baby food productionunit establishedwith Italian aid. The role of DANAis still under review in the contextof the overall reorganizationof MDR and, more generally, public services, particularly in view of its overlappingfunctions with the Ministry of Health and its contested production mandate currenty performed at a loss (see Annex 5 for more on nutritioninsttutions). -45 - Page 1 of 7

RIU3PUBLICOF DE=I

COMDuMllr-BASE!DFOOID SECURfflY PQS

Mm=te of the Workbh on )Mico roeets blmntto

BackWround.Tbis Annex rWorts the outcomeof the major conclusionsand recommendationsreached during a workshopon micro-projectsimplementation held in Cotonoufrom June 15 to 16, 1993. Were present at the workshoprepresenaives of the Govemment,of about 15 nationaland interaional NGOs, of DANIDAand of the World Bank.

1. Introduction

1. Dans le cadre de la mise en oeuvre du Projet d'Iterventions Locaes pour la Securitd Alimentaire, la mission d'evaluation du projet composee de reprseants la Banque Mondiale et de DANIDAa organisedu 15 au 16juin 1993, un atelier de concertationpour dE=re des mecanismeset des modalitEspratiques devant permettrela mise en oeuvre harmonieusedu projet d'interventionslocales pour la sdacrite alimentaire(PILSA).

2. Le Ministre du DeveloppementRural, la Cellule du Projet Pilote et les ONG partenairesont participe I cat importantdebat qui avait Egatementpour objectif de discuterles dispositifsI prendre en vue de favoriser les participationsdes ONG dans le processus d'elaboration et de mise en oeuvre du projet

2. Obiectifdu Poect

3. Le projet proposoa pour objectif essentieldo permettre au GouvemementBeninois d'assurer la securit alimentaireet d'ametiorerla situationnutritionneile des poputidons rurales des zones a risques. Le projet serait execute par les populations organies avec l'appui des Organisations Non Gouvernementatesqui joueraient le r6le d'intrmEdiares entre los beneficiairos et les sources de financement,et les garants do la bonne conduitedes opErations.

3. Partenariat Etat-ONGdanm le Cadre du PPSA

4. La phasepilote du projet a permis de promouvoirl p e paeatentre IEtat et les ONG. La mise en place de structuresde gestdonet de concertaton a favors une interactionentre les deux partenaires et une plusgrande fluiditedans la gestiondu projet. Les ONG ont alnsi pugarder leur autonomieet leur approche spcifque en vue de fidre paniciper les IoImunats I leur propre ddveloppement.A cet egard, des resultats tangibles out Ete obte sm dans les domaines de l'augmentationde la productivitE,de la gestiondes micro-projets,de l'augmentationdes reveus et de Ia raisation de micro- infrastructures.

5. Un consensuss'est par aflleurs ddgagdsur le fait qu'il fallait amdliorerla capacitedes ONG (surtout internationales)dans les domainesdu diagnosticparticipatif et d'une meileure comnssnce de l'environnementsoclo-ulturl des projets. La coordiation ell1 rapprochelent des bEnEficiairesavec les servicestechniques d'appui au monde rural prEsentssur 1e terra, s'av ait galementnEcessaire - 46 - ANNEX2 Page2 of 7 et devraitetre un domained'amelioration du PILSA. 6. D'une manieregenerale, ce partenariatvient conflrmer la tendanceactuelle des EtatsAfricains engagesdans un processusddmocratique de promouvoirla participationde la societecivile dans le developpementsocio-4conomique des pays.La participationdes ONGdans la miseen oeuvredu PILSA s'inscritdans cettedynamique. 4. La Miseen OeuvreInstitutionnelle et Techniquedu PILSA 7. Les debats fructueuxdu seminaireont aboutia un consensusgeneral sur les mecanismes techniqueset institutionnelsdu projet. Nousretiendrons: 4.1. LePartenardat 8. Le projetPILSA prendra "ses racines"sur les experiencesde la phasepilote et renforcerale partenariatBeneflciaires-ONG-Etat par la promotiond'une approcheparticipative garante de sonsucces. Un mecanismede collaborationplus etendu entre les groupementsvillageois, les ONG et autres intervenantsdans le monderural. L'objectifdevrait consister a instaurerun climatde confianceet de complementarit6dans la mise en oeuvreharmonieuse du projet Le m6canismede partenariatdevrait prendrela formede contratsspecifiant les droitset les devoirsde chaquepartie prenante dans le projet. 9. Le PILSAdevrait avoir comme caractdristique principale d'8tre un projetouvert qui viendraiten appuidans la realisationdes micro-projets identifies et misen oeuvrependant toute la dur6edu projetpar les groupementsorganises, avec lappui des ONG(sponsors) qui seralentdes intermedisiresentre les communautdset les sourcesde financement,et le garantde Ia bonnemarche du projet. Un manuelde proceduresserait elaborepour reglementerle partenariatet definir les criteres d'eligibilit6,les m6canismesde miseen oeuvreet les proceduresd'evaluation. 4.2 Les critbresd'Elidbilitd des b6ndficdaires 10. Le projetPILSA devrait intervenir prioritairement dans les zones I risquesdefinies antEicurement dansla phasepilote. Toutefois, une miseI jour de la cartographiealimentaire permettait l'actualisation de la situationdes zones I risques.A l'int6rieurde ceszones, le projetinterviendrait selon une approche communautaireprivilegiant les groupesorganises par rapportaux individus,les interventionsdevant toutefoisWe cibleesen prioritevers les groupesvulnerables. De plusun effortde sensibilisationet de regroupementdokt ee mene& 1'endroit des individusmarginalises. 11. Dans le cadrede la realisationdes micro-infrastructures,la demande devrait Wre exprimee par les communautesvillageoises organisees. 4.3. Les criteresd'eligibilite des micro-projets 12. Trois typesde projetsont eted6finis. La listeci-dessous pr6seate quelques exemples Les projetsgdnrateurs de revenus:i) petitdlevage(mouton, porcin, volaille); ii) fabricationde l'huile de palme, d'arachide; iii) fabricationde beurre de karite; iv) sdchagede poissons;v) transformationdes cdrdaleset tubercules;vi) pisciculture.Etc.. - 47 - ANNEXANX 2 Page 3 of 7

Les projets socdo-conomiques: i) banques de cereales; ii) accroissementde la production (techniquesculturales, fosses fumibres);iii) jardins maralchers; iv) lutte anti-erosive;v) amenagement de bas-fonds..Etc..

Les projets micro-infrastructures: i) pistes rurales; ii) ponceaux;iii) guds; iv) puits; v) radiers Etc..

13. Ces trois types de projets, auxquelss'ajouteraient les interventionsnutritionnelles, devraient Otre conformes aux objectifs globaux du PILSA. Les micro-projetsdevraient faire l'objet d'une etude de factibilit6a mener par les sponsors avec l'appui du PILSA en vue de determinerles activites a mener et leur coherenceavec le milieu. Une contributioninitiale des beneficiairesserait requise en nature et/ou en especes (voir crit0res mise en oeuvre du projet).

14. La prioritd serait donnee aux projets generateursde revenus presentes par les groupementsde femmes ( au moins 50% des financements).

4.4. Les critbres d'eligibilitedes sponsors (ONG)

15. Le sponsor est une Organisation Non Gouvernementale(ONG) confessionnelle et non confessionnelleofficiellement reconnue et capable de jouer un rOle d'intermndiationentre l'Etat et les bdneficiairesdans la mise en oeuvre du PILSA.

16. Le sponsor devrait avoir au moins 2 ans d'experience dans le domaine des micro-projets communautaireset une expertisetechnique dans la sensibilisation,la formulationet l'executiondes micro- projets. 11devrait en outre avoir des capacites et experiencede gestion financiere et de transfert de competencesaux comnrnautes ruralespour une perennisationdes activites.Son personnelde terrain dans le cadre du PILSA devrait Wreexperimente et libre de toute autre obligation.

17. Si le sponsorest une ONG internationaleelle devrait avoir une bonne connaissancedu milieu et etre capable de s'associer a une autre ONG ou associationlocale de developpementpour une meilleure intdgrationdu projet dans le milieu et une continuitede Plaction.

18. Le sponsordevrait Wrecapable de collaboreret de tisser des liens de cooperationavec les services techniquesde l'Etat, les autoriteslocales et autrespersonnes ressources ou servicespresents dans la zone du projet (reseau de credit mutuel). Le sponsor devrait Wtreresponsable de l'information et de la sensibilisationdes populationscibles mx objectifsdu projet.

19. Une associationde dhveloppementne pourrait pas Wtredirectement eligible en tant que sponsor. Par contre elle aurait un rOleimportant I joaer pour faciliter une meilleureintegration dans le milieu et hventuellementassurer la releve.

20. Par ailleurs les bailleurs de fonds devraient Otreconsultds avant acceptationet financementde toute nouvelleONG dans le PILSA.

4.5. La mise en oeuvre du projet

21. Un consensuss'est dEgageque la comprehensiondes enjeux culturelset socio-conomiquesdu milieu revftent une importanceprimordiale dans le succts des activites et devront sous-tendretout effort - 48 - ANNEX2 Page 4 of 7 de sensibilisation,d'identification, de preparationet d'executiondes projets. A cet effet il faudra assurer : a) une comprehensionet une appropriationdu projet par les beneficiaires;b) une approcheparticipative pour stimuler la motivationdes groupes locaux, une meilleure comprehensiondes blocages et une identificationet formulationdes projets qui puisse veritablementtirer parti des connaissanceslocales.

22. En outre les sponsorsseraient charges d'assurer la formationdes beneficiairesdans les techniques de gestion,d'organisation, de maintenancedes equipements,d'organisation des activiteset d'auto-gestion. ls devraient faire appel aux techniciensexistants dans la zone en cas de besoin.

23. L'interventiondes ONG sur le terrain s'apparente I une approche T etude-actionM dans laquelle toute la partie relative I l'etude du milieu et l'identificationdes projets fait partie du projet lui-m8me. Dans cet esprit une participationdu PILSA au financementdes etudes preliminaires aux activites d'intorventionproprement dites, serait necessaire.

24. Le PILSA devrait par ailleur appuyer les ONG dans ce travail de prdparationet jouer beaucoup plus un rOlede facilitateuret orientateurau service des beneffciaireset de leur sponsor.

4.6. Les =rojetsgenerateurs de revenus

25. L'augmentationdes revenusdes populationscibles dans les zones du projet serait poursuiviepar .epromotion d'activites generatrices de revenuset en permettantaux groupementsbeneficiaires d'accEder k des sources de financement.

a) Le credit I court terme

26. Un consensuss'est ddgage pour deconseiller des pratiques qui pourraient porter atteinte ou exercer une concurrencedeloyale au reseau de credit mutuel qni representeactuellement la seule source de credit court terme durable. Toutefois,la majorite du monde rural, particulierementdans les zonesles plus defavorisee, n'a pas acces I ces services. Les ONG pourraientjouer un rBle de catalyseur, en collaborationavec le rEseau mutuel, et permettre de toucher un public plus vaste avec l'objectif de mobiliserprogressivement plus d'epargne et de faciliterl'intdgration dans un systeme d'intermediation financire durable. Dans cet esprit les ONG pourraientoctroyer du crEditcourt terme avec les modalites suivantes:

Dans la mesure du possible les beneficiaires seraient encourages I constituer des groupementsd'epargne-cidt.

Le tax d'intEr8tdu crddit devrait Wtreapprecie selon les circonstancesde la zone en collaborationavec le reseau mutuel et devrait tendre progressivementvers les taux CLCAM (actuellement24% par an) sur une pdriode ne pouvant exceder trois ans. GEnEralementle taux initial serait autour de 15%. Les beneficiaires devraient par consequentouvrir un compte I la CLCAM afin de shabituer I ce service charge de l'octroi de credit I court terme dans le monde rural.

Le sponsorveillerait au suivi et au recouvrementdu credit. Un contratlierait le sponsor et les beneficiairesdefinissant les droits et obligationsde chacun et les modalites de remboursement. - 49 - ANNEX 2 Page 5 of 7

b) Le credit a moyenterme

27. II serait essentiellementappliqu6 aux beneficiairesengages dans des activites generatrices de revenuspour le financementd'equipement.

28. La contributiondes beneficiairesserait de 20 % du cost de l'investissement(equipement),en espece ou en nature. De plus, pour assurer la durabilite du financementet permettre la constitutiond'un fond de roulement local, les beneficiairesdevraient reconstituer au moins le capital initial et assurer le prise en charge des coOtsrecurrents et d'entretien. La duree de remboursementne devi pas ddpasser une periode de trols (3) ans. Le sponsorveillerait:

- I effectuerles etudes de factibilitede I'activite et a s'assurer qu'il s'agit d'une demande solvable et d'une activitdrentable

- i aider les beneficiairesdans le choix de l'equipementet I sa maintenance

- au suivi rigoureux des activites, de la gestion du projet et du recouvrement de l'investissement

- I la constitutiond'une epargne volontaireaupres des beneficiairesafin de resoudre les problemeseventuels de charges recurrentes.

- Un contrat lierait le sponsor aux beneficiairesdu credit de moyen terme.

c) Le credit aux individus

29. Le credit aux individusdevrait Wrecoherent avec l'objectif du PILSA et pourrait 8re octroye dans la mesure ot il facilite et maximise d'une facon generale les chances de succes des activites generatricesde revenu dans la zone. 11s'agirait en fait d'appui a la micro-entrepriseprivee et devat faire l'objet de pratiques de type commerciales.Par exemple:la constitutiond'un petit atelier de reparation de motopompes,l'installation d'un forgeron, etc..

30. Dans ce cas le credit devrait 8tre cautionnepar un groupement,le beneficlaireou/et le sponsor. Une contributioninitiale devrait aussi etre requise. L'individudevrait pouvoir demontrerqu'il reprEsente les interets d'autres individusorganises et qu'il fait partie d'un reseau de servicespotentiels. Le sponsor appuieraitle beneficiairedans la formationet la gestionde l'activite. Le credit serait place au taux de 15

d) Lea mecanismesde recouvrementdu credit

31. Le sponsorserait responsabledu recouvrementdu credit. n devraitddposer les sommespergues dans un compte bloque de la CLCAM qui serait sous sa signature et celle du chef de la Cellule decentraliseedu projet. Des recouvrementde la totalitddu credit, le compteserait debloqueet les fonds reconstituespourraient Wreutilises localementpour le financementde nouveauxprojets pour le meme ou un autre groupement.

32. En cas de non recouvrementdu credit par le sponsor, les responsabilitesseraient etablies avec la possibilited'exclure le sponsorou/et le beneflciaired'autres formes d'appui par le projet. -50- ANNEX2 Page 6 of 7

4.7. Les projets socio-economiques

33. Pour ces types de projets une partie des costs pourraient Wtresubventionnes selon les circonstances locales et les types de projets. La contributiondes b6neficiaires aux projets socio- economiquesconsisterait principalement en une participationen nature dans la realisation des travaux. En cas de credit les modalitesdecrites plus haut s'appliqueralent.

4.8. Les micro-infrastructures

34. Le projet subventionneraitles micro-infrastructuresI hauteur de 80 %. Les beneficiaires contribueraientpour au moins20 % du collt de l'ouvrage en nature ainsi qu'aux travaux de maintenance n6cessaires.Le PAM pourrait participer I la realisationdes micro-infrastructuressous forme de 'food for work".

35. Le sponsoret le projet veilleraientk s'entourer des competencesnecessaires k l'Etudede facthbilite des micro-infrastructures.Selon l'importancedes travaux la responsabilit6du suivi et du contr6lesera I definir en concertationavec les servicestechniques competants.

5. La Formationet l'Informatlon

5.1. La formation

36. La formationa ete retenuecomme prioritaire dans la mise en oeuvre du PILSA. Elle s'adresserait aux sponsors-ONG-associationset responsablesdu projet. Elle devrait s'articuler autour des themes suivants : diagnosticet etude du milieu, organisationet mode d'interventionen milieu rural, gestion et evaluationdes projets, gestion du credit. L'accent serait mis sur l'approche participative.

5.2. L'information

37. La circulationde l'linformationk tousles niveaux du PILSAest jugee necessaire.Le PILSAdevra essayerde developperdes synergieset de capitaliserles experiencesdes differentesinterventions en vue d'enrichir les methodeset les activites. La cellule centraledevrait assurer un feed-backaux sponsorsafin qu'ils prennent en compteles recommandationsqui pourraientftre formuleespour une ameliorationdans l'executiondu projet.

38. L'echanged'information et la concertationavec les autresservices d'appui au monde rural et avec les autoriteslocales est egalementI ameliorer. Ainsi, une revue locale des differentesactivites devrait 8tre encouragee.La Cellule centrale et les sponsors devraientmener une campagned'information aupres des populationsdes zones I risques retenues avant le dEbutdu projet.

39. La necessitede mettre en place un bulletinde liaison a egalementete discutEe.Les modalitesde productionde ce bulletin devraientetre precisees.

6. Les structures de gesdon du PILSA

40. Le PILSA contrairementI la phase pilote aurait trois structures, une cellule centrale et deux cellulesd6centralisees: l'une pour le Nord du pays et I'autre pour le Sud. -51 - ANNE2 Page 7 of 7

6.1. Le rdle et les attributionsde la celtule centrale

41. La cellule Centraledevralt avoir pour rOlede gerer le PILSA. Eile aurait pour tiches principales de: a) VeillerI la mise en oeuvre du projet, assurer une bonne informationdes ONG sur les modalites de participationau projet sur la base d'un manuel de procddures,evaluer et approuverles propositions d'intervention,et coordonnerles differentesactivites; b) ameliorerl'efficacite des ONG sur le terrain en appuyantleurs actions en matibred'animation, diagnostic et mise en oeuvretechnique; c) assurer un suivi regulier de l'execution physique et financiere du projet; d) organiser des seminaires de formation/informationI l'endroit des sponsors et des beneficiaires;e) evaluer l'impact des actions de terrain en termes d'alimentationet de nutrition; f) preparer les rapports annuels d'activite; g) r6pondre aux missionsd'audit et de contrOleque pourraientrealiser l'Etat ou la Banque Mondiale;h) superviser les activites des Cellules decentralls6es;et i) etablir des contrats de cooperationentre le Projet et les sponsors.

6.2. Ie r6le et les attributionsdes cellules decentralisees

42. Les deux cellules d6centraliseesdu PILSA auraient pour but de rapprocher le PILSA des bdneficiaireset faciliter la comprehensiondes modalitesde leur participationaux activites du projet. De meme, elles favoriseraient l'interaction entre les bEn6ficiaireset les sponsors pour une plus grande efficacit6dans la gestion des micro-projets.

43. Les cellulesdecentralisees seraient responsables de: a) apporter un appui techniqueaux sponsors dans la formulation de projets; b) analyser et approuver les micro-projetsavec l'appui de la Cellule centrale; les decisions d'approbation des micro-projetsse prendraient collegialement;c) faciliter les contactsentre les services techniquesde l'Etat dans la zone, les sponsorset les autoriteslocales; d) jouer un r6le catalyseurdans l'organisationet la tenue des revues locales.

7. Le suivi et l'evaluation du projet

44. Le suivi et l'evaluationdu PILSA se ferait I deux niveaux:

(a) La cellule centrale assureraitun suivi global (suivi d'exdcution, suivi techniqueet suivi d'impact) du prejat et sera appuye en cela par les cellules dEcentralisEes.Un rapport annuel de l'etat d'execution physiqueet financierdu projet serait dtabli I cet effet. Des indicateurs qualitatifs et quantitatifsseraient formules 4 chaque niveau de suivi pour mesurer la progressiondu projet vers ses objectifsglobaux et sp6cifiques. Ds ffli de suivi d'execution devraient permettre aux sponsors de rapporter leurs activites au moins semestriellement.ls assureraient le suivi permanent des activites avec la participationdes bEndficiaires.

(b) L'evaluationdu projet devrait 8re effectueepar une structure exterieure au projet. - 53 -

Page 1 of 5

REPUBLIQPB8N1

COMMdUNITYr-BASEDPOO SECURM MAodolos usedfor thl ienfco of areasatnd gmOupS at food secut risk

A. &YMM 1. Tlb idetaication of areas and groupsat risk of food Iscrity and malutrion was conductedas part of the pilot phase of tis projecLA food securitydata bank coverig 77 'sous- Prdfectures'with series of infomniationsover a period of 10 yeas was stablished.It Includes14 indicatorssuch as annualrainfl, food prices, income,conumption and malition rates among children.Altogether, over 20,000 data reated to the identficationand the monitoringof householdfood securityproblems were collected. The identification of populaons at risk wasconducted as a two stage process:first the identificationof areaswhere food insecurit is prevaent,then, wthin theseareas, the identificationof householdsat food securiq risk. Ih firs stage led to the idendficationof 11 first priority'sous-Pr6fectures" with a high risk of food shortageand malntiton, and 9 secondpriority 'sous-Prdfectum"where fators of risk existed,but at a lowerdegree of severt. Withinthese areas, a 'fbod Inseaift householdgrid" has beenproposed to allowbetter targetng of the mostvlnerable groups. B. Creationof a food secri dataase 2. Duringthe pilot phase a databank was constte withirmaton gatheredfrom a variety of insttu and studies.This raised a numberof difficultiesbecause data wereheterogewous, often limitedto specificregions, and werenot alwayscomparable between regions or overtime. Additional first hand data were collecteddtrough field work. The analyis has separted caual factorsof food insecrt (e.g. popuationdensity, production,...) from their outcome(e.g. matition). Two disdnct key conceptswere used: tha of "areasat ra and of 'populaionsat risk". 3. The methodfor the identificationof the groupsat riskis a two stageprocess. First, the identificationof areaswhere food insecurt appars prent on the basisof statsticaldata at the "sous- PrEeicture'level. Then, withinthese areas, the identificadonof food inece households,by usinga smallmmber of householdlevel indicators collected at the timeof micro-oject prepaation. Mostof the indicatorsselected reflect the limis of landproducvity, isolation,mliion andtheir combination expressesto a large extentthe predominantdetemina of poverty.This 'conergence of evidence' excludesthe poor fromrich agrictdual areasbecas it intendsto focusin a more cost-effectiveway on areasof highconcentration of povertyor highrisk of food inseurity ratherthan to att t to locate the poor nationwide. 4. Popuationsat riskof foodinseurty are not necessarilymalourished at the timeof data collection.On the basisof the localfrquency of climaticaccidents, some populations can be at highrisk evenif the lastharvest(s) have been above average. Nor are theynecessriy locatedin regionsof highest ecologicalrisk, since populationslivi In high-riskemvironments may have developedbetter coping - 54 -

ANNEX 3 Page 2 of 5 mechanismsthan populationslocated other areas. Moreover, because of a highly variable population density, the largest number of people sufferingfrom food insecurityare not located in the areas mostly at ecological risk. The two concepts of 'population at risk" and *areas at risk" are therefore complementry and do not necessarilyoverlap.

C. The indicatorsused for the identificationof areas at risk

5. Eight indicatorswere selected to caacteize the leading"causes" of food insecurity:four of them are linkedto agricultura production,two to isolation(enclave areas), one to prices and one to populationpressure on land. Two indices of malnutritionwere used to assess the "effect of food inscurity. At a later stage of the analysisan indexof income(REV) was determinedfrom field visit and prior study. The table below summarz the indicatorsused:

Determinants Descriptionof the variable Agriculturalproduction (PRODI) (Low Food productionconverted in food energy level) (calories) Agricult. production (PROD2)(Lowlevel) Cash value of agriculturalproduction (FCFA) Agricult. production (PROD3)(Lowlevel) PROD2 dividedby the cost of the daily food reqireeat(ratio)l Variationof agriculturalproduction Coefficientof variationof PROD1 (perentage) (PROD4) Limitationto land use (DEMO) Area of cultivatedland per capita (ha) Cost of basic diet (PRICE)(Highlevel) Cost of daily food requirement(CFAF) Isolation of the "sous prdfecture (ISO!) Index of isolationof the district Capital Isolation of villagesfrom markets (1S02) Index of isolationof villageswithin the District

Effects Description of variables Malnutrition(NUT1) Averagerate of malnutritionamong children0- l______3 years Seasonalvariation of malnutrition Ratio of highestto lowest annual rate of (NUT2) malnutrition

6. Food production converted in food energy per capita (PRODI) indicates that most sous- Prefectures, with the exceptionof highly urbanized ones, produce enough food for their basic food requirements.Three classes were deermined : above 2,000 Kcal per capita; from 2,000 to 1,600 Kcal per capita; and below 1,600Kcal per capita. The sous-Prefectureswith the most severe food deficit were located in North Borgou, West Atacora and Mono. - 55 -

ANNEX3 Page 3 of S

7. The cash value of agriculturalproduction (PROD2)was calculatedfrom food crops and cotton productionusing prices from 1986to 1990. Havingtaken into accountestimates for the cost of inputs, it is a proxy for agriculturalincome. Income varies from a few thousandCFAF in poor areas of Mono, West Atacora and Northern Borgou to over 70,000 CFAF in rich cotton growing zones. There is a marked overlap betweenareas sufferingfrom food deficit and low incomeareas.

8. The third indicator (PROD3)is the ratio of per capita incometo the cost of the per capita daily food requirement.The food consumptionpattern of the populationof Beninvaries from North to South: in Borgou and Atacora, the staple food are sorghumand yam. DescendingSouth, in the Departmentof Zou, maize and cassavareplace graduallysorghum and yam, and in the coastal Departmentsof Mono, Atlantique and Oueme, maize and cassava are the staple foods. Using the FAO mapping of food consumptionpatterns (in Kgcal/capita/year)and local prices in each "sous-Prefecture",it was possible to computethe cost of the per capita daily food requirementgiven prevalent diet patterns. Such cost ranged from less than 15,000CFAF to more than 25,000 CFAF. Food intaketends to be more expensive in the North than in the South, mainlybecause the caloric unit cost of food (sorghumand yam) is higher than in the South. 'Sous-Pr6fectures' were classified as food insecure when their average per capita incomeequals less than 90 % of the cost of the food requirement,and as food secure when their average incomeis equal or over 110 % the cost of their basic diet.

9. The indicatorPROD4 expresses the variabilityof food production (PROD1) over a period of ten years. It is measured as the ratio of the standarddeviation to the mean of annual production, expressed as a percentage.

10. The two indicatorsused for isolationare the type of access availableto reach the District capital (ISOI) and the accessibilityof villagesand markets withinthe District (IS02), expressedas a percentage of villageswhich have a difficultaccess or no access a all in the rainy season.

11. Populationpressure on land was expressedby the ratio of cultivatedland area per the nuber of householdin each sous-pr6fecture."Sous-prdfectures were grouped in four categories,ranging from over 3 ha per household,more often in the center and the north, to below 0.5 ha per household,a frequent situationin coastal "sous-Prefectures'.All southern sous-Pr6fectures are in the lowesttwo categories, with less than 1 hectare per household.

12. The two indicators selected to assess the effect of food insecurity are the rates of child malnutritionby 'sous-Prefecture"and the variabilityof these rates over time. This was basedon the data collectedby Cathwel over almostten years (1982-1990)of infant and child (aged 0 to 3 years) growth monitoringusing weight for age as the key index of malnutrtion. The threshold of malautritionwas 80 % of Harvard growth charts. These data were the best set available in Benin, but they have some limitationsrelated to the indicator itself - weight for height or height for age are generally considered as more significative- and to the representativenessof the sampleswith respect to the populationof the Osous-Pr6fectures'.

13. Malnutritionrates were dividedin four classes:low (below33%), intermediate(33 to 37%), high (37 to 40%) and severe (above40%). Malnutritionrates tend to be higher in the Souththan in the North; however, there is no clear geographicpattern. Variabilityin malnutritionrates was calculatedfrom the average monthlydeviation of the malnutritionrate from the mean. They tend to be more stable in the South than in the North. In Atacora and Borgou in particular, rates fluctuate by more than 27 % from - 56 -

ANNEX 3 Page 4 of S

one season to the next. Overall malnutritionpeaks from May to July, during the "hungry season", and is lowest during harvest (September).

D. 'Sous-Prefecures" at risk of food insecui4t

14. There is not a strict correspondencebetween the severity (and the variability)of the rates of malumron and the convergenceof indicators of food inscrity. TIis apparent lack of correlation between *causes"and effects"is not surprising:malnutrition is not caused by food insecurityalore. It also results from low educationlevels of mothers, iapopra weaningpractices, inadequateaccess to health care, lack of inizon, etc... In addition,food insecurityhas the most severe effects where there are no alterative survivalstrategies such as migrationor off-farm incomeopportuities, and where people have not succeededin developingsuccessful coping medhanisms.

15. For each indicator,thresholds have been set to determinedegrees of severity. In order to test the sensitivityof food insecurity,a compositeindex has been computedas the sum of the differentindicators, using differentcombinations of weightsfor each indicator. First and secondpriority zones at risk have been identifiedin this way.

16. The corresponding sous-Pr6fectures'are indicatedbelow.

Department First priority areas Secondpriority areas

Atacora Boukoumb6,Materi Natitingou, Cobly Atlantique Ouidah So-Ava, Kpomass6 Xr=ma__aBorgou

Mono Bopa, Com6, Grand-Popo Dogbo Oueme Aguegues, Sem6-Kpodji Dangbo Zou Za-Kpota,Agbagnizoun Zagnagnado, Zogbodom6,Cove - 57 -

ANiNEX3 Page5 of 5 E. C 17. Notall householdswithin a sous-Prdfecurecan be expectedto be equallyat risk. To fiuther targetiterventions, therefore, sinple criteria were detamined to Udenfythe most vulnerable households. To be opeaonal suchcriteria have intentionaly been chosen so that theycould be easilymeasurable or directlyvisible and avoidmore unreliablo and embaasing questionsdirectly reated to incomelevels and sources,which may require more in deph aalysis and time.

Crkea JPoint acordingto crit lAnd/pon =dio 1. Ar cukad pw capt 1las tha- 0.5 ha; 2- 0.5 to 3 ba, 3Sbove 3 ha. Depeondeyrado 2. No.of onaacvIadivo pae s Im-over2; 2-1 to 2; 3m lowerthan 1. Equpmentand Asid 3. Ownerhipof a plough 1-no; 2-bas asoe; 3 Owne 4. Owneshp of a bicycl 1-no;2-bis access;3- owner 5. OwnehIp of MADo 1no; 2-has acocs; 3- owner HyS&w 6. Safewar 1-rier, pondor ake;2-wel; 3-funtain or tap .. f ~~~~~~~~~~~~~~~aer. Cied 7. Acoe to cred 1-no; 2-tontin only;3- CLCAM Foodcrops S. P_odudo vs. requremAnof 1-defic 2-balac; 3-surpl of sab food !! ______stapleo _food Chb crops 9. nual inoomefom vegble I -none; 2- 500to S000CFAP; 3'- over5500 I ______ga8dening CPFA

______10.Pm oilndor coownUttree 1- n202- 21 to503ovw50 11. Cotton 1-none;2-ls tdan0.5 ha3- over0.5 h. Animalownerp 12. Numbr of anml (sheep, 1-aon; 2-1 to 5; 3- ovwrS go Cow,po)pip) Housing 13. Roofof mai dwln 1-s=r,w 2-old ocorougt baa; 3-now cougated hV&. 14. Wallsof maindwlit 1-mud; 2-xunfrco mud(bleawoo); 3-aemen

Lieacy 15. Numberof yes of shootg 1- none;2- 1 to 3 yean; 3- over3 yar. ?4alnur 16. M_nutin (am 1-pawen 2osmct be dmnod; 3-sbsut mesurmn"tof IStb below5 yn) 20. On the basis of the abovecrteria, householdsto be consideredfor supportthrough the project wouldbe asigned a score, lower scoresare associatedwih greatervulnbility, hence indicating householdsto be givenpriority for inclusionin projectinterveion. he ceria and the intpretaton of the resuls mayhave to be adaptedacoording to the diffent regionsad to the relativepositon of the final scorein a rangevarying, in this case,from a maximumof 48 pointsto a minimumof 16. - 59 - ANNEX4 Page 1 of 6

KRIHPEG1OI7 BENIN

COMMUlNITY-BASEDPOOp SECURJITYPROJ3C MicmrojectsImlmeWo

A. InoductiQn 1. Basedon the experienceof the pilot phaseand preparatorystudies, it wasfound that a significantshare of rural groupsand householdsare deprivedof the financWsupport needed to enhance productivity.A large demandexists for smalltool, mateial, equipmentand inputs,and for initat newincome generating activities. Moreover, lack of trainingin conductngthese operations, and poor financialmanagement of small investmentare pervasive. Experiencehas shown that financingof equipmentonly, for thepromotion of newactivities, without providig the necessaryservice and support, leadsoften to unsustnale inestments. Insufficientpreparatory studies of the specificsocio-economic enviromntand of the feasibilityof the operations,has alsobeen conducive to inappropriaefinancing. 2. The approachto these constrains requiresto build on each specificsituation and bottlmecksand aim at their solutionthrough the empowewaentof the local comuit and the promotionof loca developmentactivities at the grassrootslevel. To be specificand tailoredto the particularneeds of the ruralgroups, activities have to be identifiedand stdied in dose colaborationwith the localcommunities themselves. k is proposed,under this project,that selectedNGOs woud assist nrual groups in designingad implementingmicro-projects aimed at imprving their food security siuton and alleviatingpoverty. NMOswould be the sponsorof the proposedopeations, and would help the beneficiariesaccess sources of financing.A formalagreement woud be signedbetween the projectManagement Unit and the NGOsfor the implementationof the approed micro-projects. 3. 'he approachand the activitiesproposed are conceivedso as to providethe initi requiredfinancia and technical assistance to improvegroup capacity in managingmicro-investments and reconstitutingthe financialcapital invested in the activity.The projectwould encourage registration of the targetedgroups in the localCLCAM and promote the establishm of smallsavings and loangrups. Therefore,the projectwould help addressthe needsof disadvantagdcommunes duringa transitional phasebefore they can bave access to an officialfinancial Intrmediary system and hence enlarge the scope of their activities.Close coordination with the existingsavings and loan coopeativenetwork woud be soughtto fosterprogressive and susainableintegration of projectbeneficiaries into the existingcredit networkfor shortterm creditneeds. 4. An implementaonmanual has beenprepared in order to definethe main criteriafor paticipation to the project and the steps to be completedfor microproject preparationand implementation,as wellas procrementand disbursementprocedures. B. Typ of miroprj and eliibt criteria

5. Belowis a pre]mnri list of possibletype of micro-projectsand their financingcritea. However,the projectw i : a) activitiesand works of hightechnicality, difficult to manage, that cannotbe maintainedby the beneficiariesor thatreqWire the per=ma interventionof the NGO;b) - 60 - AN4 Page2 of 6 operationsalready included in otherprograms or whichhave been eliinaed fom t public lnvestnt program;c) majorsocial inrucres, healthcenters, schools, electification ad the purchas of land; and d) micro-projectswith a negativeimpact on the environment

1. Income geneajgativites

6. Theseactvities specificallybenefit to organizedgroups and are Intendedto impro communies'food self-sufficisecyand cashIncome. Ihe projectwould fiance, In the formof grants, the purchaseof the equipment,assets and inputsrequired for theplemetaton of the activities,and the relatedting. However,the NGOresponsible with implementing the operationswould set up and managea creditscheme in order to have a revolvingfond and ens sustalnabUityof the acties. Theseinclude:

(a) fang of small umina, fisheries,honey poucton, poultryraisng, etc (b) food processingand transoation: proceing of cassava into "garl and chps, traction of palm and coconutoil, conservationunt, fish smokng, shellingof groundnutand rice, saponification,etc.; (c) suport to agricutual production:small Irrigationpumps, oxen carts, veriny Material,etc.;

(d) small wadingactvities for womengroups and foodmarketing. 7. l rtehbese micro-project will have to dmonstrte that:

(a) they have a financi rate of retur of at least 15% and thy pennit to hiprove significantiythe retuns to laborof the family; (b) sva:'bifity of produceoutdet and maket capacit of the group; (c) existenceof sufficientintemal cohesionof the group for the orgnizatn and managementof the acvi and settingup of a managementcommittee;

(d) theywill be subjectto a formalagreement between the beneficiaryand the NGOdefining cost recoveryarangements;

(e) financingfor equipmentsand inputs,subject to costrecovery, would not exceedFCFA 1.5 millionper group;

(M) finaning does not substituteother source of fuids and is taged to groupswhich do not haveaccess to formalsources of credit;

(g) they includethe co ning ainingprog - 61 - Page 3 of 6

2. Socio-eonomic mlgMEQrjects 8. Theyrefer to communitymicro-projects aiming at improvingincome and foodsocrity and requiringsmall constructions, land development or rural worss of a productivenature, and relatd trainng. They comprise: (a) decentalizedcommunity storage; (b) land development,small irrigaton, bottom-landdevelopment, vegetable gudens, watershiedmanagement, compost production, tree nurseries;and

(c) handicraftactivities and transport facilities(carts) that could ease womens' workload, improvedstoves to reducefuelwood use. 9. Fiancing criteria. Theseactivities must demonstrate that: (a) they improvefood security or nutritionstandards, they have a financialrate of retu of at least 10%and improvesignificandy the returnsto labor of the family;

(b) they includesatisfaory aran_gemen for the coverageof recurrentcosts, operationSand maintenance,and a managementcommittee has beenset up; (c) availabilityof produceoutlet and marketingcapacity of the group; (d) landtenure arrangements are clearlyestablished and there are no conflicts; (e) they are subjectto a formalagreement between the beneficiarygroup and the NGO definingcost recoveryarrangements; (t) financingfor equipmentand inputs,subject to cost recovery,would not exceedFCFA 1.5 millionper group; (g) financingdoes not substitte othersources of fundsand is targetedto groupswhich do not have accessto formalsources of credit;and (h) they includethe correspondingtraining program. 3. Micro-infastructures

10. Most of these activitiesaim at providingassistance in the solutionof clearly dentified constraintsparticularly in the mostremote and unacemsle areas. Theywould particarly helpreolve modestbut verycommon and widespreadtransport constraints, which, although requiing ittl financial input,are neglectedby more classicpublic interventions. They comprise:

(a) improvementof vilage access and feeder roads, the rehabilitationof small structures (smallbridges, fords);

(b) the rehabilitationof market place facilities,village wells and livestockwatering point. - 62 - Page 4 of 6

11. Fiing criteria. These projects will have to demonstrate:

(a) that their cost does not exceedFCFA 30 million;

(b) that the volume of traffic, transport means, accessibilityperiod, nber of direct and indirect beneficiaries,present alternativesand costs and benefits justify the proposed investment;

(c) the willingparticipation and commitmentto the mainteance of the micro-infrastructures by the local communitiesconcerned is assured;

(d) that worksare technicallyfeasible and must receivethe support from availablespecialized technicalservices (NGO, CARDER,MTPT, or consultant),to verify their adequacywith the requirements;

(e) that the costs for rehabilitationand mantenance of feeder roads are in conformitywith observedlocal norms and the labor intensiveapproach is preferredto the mechanicalone.

C. Beneficiariesand eligibilitycriteria

12. For income eeneratingand soclo-cnomic activities,project beneficiariesare the rural groups legallyor traditionallyrecognized. To be eligible it would have to be demonstated that:

(a) they are composedby at least 5 persons, includinga president, a treasurer and a secretary (namesto be provided);

(b) they are an homogenousgroup, sociallycoherent and mutually responsible,capable to mobilize the required resourcesto implementand maintainthe micro-project;

(d) they have no access to formal sources of credit;

(e) they keep simplifiedforms of records or accounts;

( they prove their motivationand commitmentby contributingat least 20% of total project costs in kind and/or cash, the cash contribuion wll have to be of at least 10%;

(g) they acceptto be "sponsored"by an eligible NGO, followits advises, respect the rights and obligationsof the formal agreementto be signed with the sponsor, and complywith cost recovery requirements;and

(h) they do not have outstandingdebts with other instittions or projects.

13. Individualscould benefit from project financingonly if their activity is guarteed by a group andby the sponsoringNGO. In additionto the mandatory20% inWialcontribution, they also would have to provide collateralscovering the amountof the financing. In these cases it has to be demonstrad - 63 - ANNEX4 Page5 of 6 thatthe activityproposed would have an Importantimpact on the feasibilityand sustanability of the other micro-projectsin the zone(blacksmith for oxenequipment, mechanics for pumpsrepair). 14. Formicr&-infiutructures, the beneficiaries would be the localgovernments and organized rural communitiswho expressthe requestthrough a NGO,after approvalof localauthorities. The communitywill have to be representedby a managementcommittee and willhave to provideits labor for maintenancewith no remuneration.Beneficiaries' in-kind initi conributionwill have to be of at least20% of the totalcost of the investment.

D. Sponsorsand eligibilitycriteria

15. ITe sponsoris a non-governmentalorganization or associationofficially recognized and of non-lucrativepurpose. Its objectivesare the developmentof localrural communitiesand it is capable of playinga role of intermediarybetween the Stateand the bneficiaries. Sponsorsmust comply with the followinggeneral conditions:

(a) be legallyconstituted and officiallyrecognized in the Republicof Benin; (b) haveat leasttwo years of experiencein the preparationand implemeion of community developmentmicro-projects; (c) have demonsted financialmangement and technologytransfer capacityto rural communities; (d) field stafffor projectimplementation is competentand at the completedisposal of the project;

(d) interaonal NGOswould accept to enter into "jointventures" with national NGOs or DevelopmentAssociations to ensurecontiity and susailnaity; and (e) eachsponsor intevention proposals would not exceedthe totalannual cost of FCFA40 million(US$70,000), NGO staff cost excluded. 16. Otherspecific eligibility critia wouldbe checkedagainst the followingtable. The sponsorswould need 50 pointsto be eligible. Page6 of 6

l ______Maximum Points Criteria for Attribution A. Experience * Yearsof activityin Beninor in the sub-region 5 1 peryear e Numberof similarprojects 10 1 per project 'Experienceof the proposedfield staff 15 judgementCV e Numberof field staff 10 1 per pers. * Knowledgeof the Interventionarea 10 judgement B. Management * Accountsavailable 6 yes/no Propectbudgets manoed (2 at yea) 5 111.000.000CFA * Experienceof supporttechnical staff 10 JudgerientCV o Numbercontractual staff (central) 5 1 per pers. C. Organizationand logistic * Logisticcapacity (office, vehicles) 5 judgement * Previousdonor financing 5 judgement * Establishedat locallevel 15 judgement and enjoying community confidence I ,LTOTAL 100

E. .

17. The ImplementtionManual describes the proceduresand the steps to be followedfor micro-projectpreparation, implementation and financing. Such a manualhas been preparedby the Government,the N5O communityand IDA during two workshopsand agreed upon betweenthe Governmentand IDA during negotiations. Once a micro-projecthas been appraised and approved, MMU will sign a contractwith the sponsoringNGO clearly defining the rightsand obligationsof eachparty, includingthe obligationsof the sponsorto enforcethe reimbursementof the capital costs, where applicable.In that respect,NGOs and the beneficiaies'groups they are supporting,would also enter intoa formalagreement specifying the costrecovery schedue and mechanisms. The NGOs performance wouldbe reviewedanually agait moniorabletget nicat whenprepartig and discussing the work planand budgetsfor the followingyear. The caseof non-perfrmingNGOs would be discussedat the CoordinationComnittee level at the requestof the MMU,and contractscould be tminated if required. 18. For incomegenerating and socio-economicactivities, within the financinglimits set above,NGOs and beneficiaries'groups would be responsiblefor imple ion and will enter into contracts,if necessary,with artisans, local outreachagents ( anima ), small enterprises,and suppliers.For micro-infrastructure projects below US$6,000, the NGOsand the beneficiaries'committee willbe responsiblefor organizingthe work, supplyof *food-for-work,and contractindividual workers ('tcherons'). 19. For worksabove US$6,000, the MMUwould eater into contracts with small enterprises, and mayalso contracttechnical assistance (NGOs, local units of technicalMinistries, engineers) for the preparationof preliminarystudies and specifications. For worksabove US$30,000 local bidding would be usedfor contractingsmall and mediumenterprises to carryout the works.MMU would contract local consultantsor engineerservices to preparethe technical specifications, supense the worksand cary out the preliminaryacceptance. The decentralzedtechnical sevices of the CARDERand MTPTwould conductthe final acceptanceof the works. The projectwould not financeworks above US$55,000. - 65 - ANNEX 5 Page 1 of 11

REPUBLICOF BENIN

COMMUNITY-BASEDFOOD SECURlTYPROJECT

Proiect Benefits- Micro-ProJectsFinancial Feasibility

A. Overall Proect Impact

1. The Project aims at improvingthe food security and nutritionalstatus of the most disadvantaged segmentsof Benin's rural population,in selectedareas whichare identifiedas particularlyprone to food insecurityand/or nutritionaldisorders. A total of about 20 sites wsous-prefecturesuhave been selected for initialproject acdvities, encompassinga total populationof about 1.1 million people of which about 75% living in rural areas. In those targeted zones, and possiblyothers to be identifiedduring project implementation,the project will provide financial and technical support to conduct various income generatingand socio-economic activities, infrastructure development and nutrition interventions. All field activitieswill be carried out with the assistanceof NGOsand the activeparticipation of the beneficiaries.

2. Over the five-yearproject implementation period, it is estimatedthat some 1,500 farmers' groups of about 10 memberseach on average (.e. a total of about 15,000 farm households,or 100,000people with an averageof 7 persons per household)will be direcdy involvedin the project's incomegenerating ocio-onomic activities. These activitieswill contributeto communities'food self-sufficiencyand better revenues through:a) the developmentof food and animalproduction (food crops, fish, livestock); b) small scale food processing; c) improvementof the population'sstorage and marketing capacities. Throughthese activities,not only will the communitybenefit from addedagricultual productioncapacity and potential, but also from the fact that many services which were previously provided by outside operators, such as trade and smallscale food processing,will be increasinglyundertaken at the locallevel with a concomitantincrease in local value added and incomes. The project will thus contribute to reducingfood insecurityby reactivatinglocal initiativesand economies.Corresponding costs andbenefits are fiurher analyzedbelow for a number of typical activities.

3. The developmentof rural inf u will be of benefit to a larger share of rural population, whichcan be roughlyestimated at about 30% of the totalpopulation in the project area (i.e. an estimated 300,000 people). In particular, improvementof the rural roads and tracks network and associated structures(e.g. small bridges), will contributeto reducing the isolationwhich characterizesmany food insecureareas, thereby facilitatingvillage integrationio regionaleconomies. Other rural infrastructure such as village water supply, improvementof market places, etc. will also translate into a significant increasein living standardsand in the developmentof local economies.

4. The nutritioninterventions of the project will permit the improvementof the nutritionalstatus of the most disadvantagedpopulations who currently suffer from serious proteino-energetic,vitamin or mineraldeficiencies (e.g. vitaminA, iodine, iron). Nutritioninterventions are designedto broaden the developmentimpact of the micro-projectsby ensuringthat increasedincome and access to food will be used in ways which improve nutrition. The commuiy nutrition program to be implementedat the village level would monitor growth of about 48,000 children and about 20,000 lactating or pregnant women. The interventionaims at an overall reductionof malnutritionof about 30%. -66- ANNEX Page 2 of 11

5. In additionto these variousbenefits with a direct impacton the beneficiarypopulation, the project will also contributeto the financingof a national monitoringand informationsystem for food security. It will thus improve the understandingof the food security situation in Benin, and allow a continuous updatingof the nationalfood security strategytogether with improvedtargeting of actions on vulnerable populationsand areas at risk. The project will also financethe preparationof a nationalnutrition strategy and contribute to a better definition of the role of the different institutionsand actors involved for enhancedstrategic coherenceand better use of scarce resourcesaccording to national priorities.

6. The project will help develophands-on experience and define appropriateand replicabletools for addressingidentified food security constraintsat the local level. The institutionalapproach adopted by the project will help develop partnershipand complementaritybetween public services and decentralized decision-makingby NGOs for support to local communities. Such a collaborationbetween NGOs and public services will foster new opportunitiesfor better addressingspecific problems and promotingviable community-basedinitiatives. The Project will encouragethe emergenceand developmentof local NGOs in Benin, which will subsequentlybe in a position to play an expandingrole in providing support to the rral sector.

B. FinancialFeasibility of SelectedProject Activities

7. The project would finance activities on a grant basis o"lv, and therefore would not act as a lending agency. However, for the implementationof incomeg ating and socio-economicactivities, the NGOs sponsoring the micro-projectswould put in place at" manage small credit schemes so to constitutea revolving fund at the local level and promote sustainability.

a) Income generatingand socio-economIcactivities

8. Both incomegenerating and socio-economicactivities are expectedto generate additionalfood production and/or revenues, thus contributingto the alleviationof food insecurityand poverty in the project area. For these activities, an initial contributionin cash and/or in kind from the beneficiaries, equivalentto a minimumof 20% of the total investmentcost, will be required. Project financingwould be granted as follows:

i) financingfor equipment,assets or inputs for incomegenerating activities (e.g. equipment for fishermen, breeding and/or fatteningof small ruminantsor pigs, production and /or processing of cassava and other food products, small scale trading, etc.) will be authorizedby the project with full cost recovery and adequate interest rates from the beneficiaries,as these activitiesallow a faidy quick return on the initial investment;

ii) socio-economicactivities (e.g. bottomlandsdevelopment, establishmentof fish-ponds, vegetablehome-gardens, storage facilities,etc.) will usuallyrequire somerural worksor constructionswhich are beyond the means of most impoverishedvillage communities. These initial investmentscosts would be financedby the project on a grant basis. Such financingis justified on the groundsof their food self-sufficiencyobjective and of their socio-economicimpact. They are expected to be of benefit mainly to the poorest segmentsof village communities.

9. Short term financing would be required mainly for agricultural production and processing operations,and revolving fumdsfor small trading activities. The interest rate requested would be fixed - 67 - AN Page 3 of 11 according to prevailing circumstances and in coordinationwith the local cooperative credit branch (CLCAM). The interestrate would graduallyincrease to reach the level practicedby the CLCAMmutual credit network(presently 24%) over a periodof three years. The initialrate would usuallybe of at least 12%. Only groups which do not have access to formal sources of financingwould be eligible. In this way, short term financingprovided by the projectwill not create any unfair competitionwith the CLCAM network. On the contrary, the NGOs will aim at transferring progressivelytheir short-term financing activities to this permanent source of short term credit. By encouragingthe beneficiariesto take membershipin the CLCAMnetwork, the expansionof the networkwill be fostered for the benefitof the poorest fraction of the rural population,who are currently unable to avail themselvesof these existing credit facilities.

10. At present time, there is no formal institutionproviding medium term credit in rural areas, as the CLCAM network only deals with short term credit. Medium term financingwould be granted by the NGOs for income generating and socio-economicactivities involvingassets or equipment. Full cost recovery would apply, the initial capitalwould have to be reconstitutedover a maximumperiod of three years. Savings would accumulatethrough payments calculated at replacement costs, inflation being estimatedat about 3% per year, interest on depositsat the prevailingCLCAM rate (currently3%), and the useful life being estimatedconservatively. The amountsrepaid by the beneficiarieswill be deposited in an accountopened at the local CLCAM, with transactionsrequiring two signaturesrespectively from the sponsoringNGO and the Project ManagementUnit.

11. Cost recovery from the beneficiarieswill be under the responsibilityof the sponsoringNGO. Oncethe cost of the investmenthas been completelyrecovered, funds would be used for anotherinitiative or micro-projectfor the same or another group. Towards the end of the project implementationperiod, remaining funds would either be used for grant financing of rural infrastructure or socio-economic activitiesin the communityarea, or for the continuationand/or expansionof the project conceptto other beneficiariesor areas of food insecurity.

12. For illustrativepurposes, the financialprofitability of several typical activitiesis analyzedin the attached tables. During project implementation,the actual feasibilityof eacn activity or micro-project will have to be analyzedin detail, taking into accountactual farmers' demand as well as the costs and parametersspecific to each area and the correspondingmarket opportunities. Financing conditionsand the repaymentschedule for mediumterm credits will be determinedon a case-by-casebasis, basedon the above general guidelines.

13. In the indicativetables below, crop output includingself-onsumption has been valued at local market prices, and labor at market agriculturallabor wages i.e. 500-600 CFAF per manday on average. Financialrates of return on total investments(including labor) usuallyrange from 20% to more than 50% and a two to threefold increase in return per labor-day. They can be summarizedas follows: - 68 - Page4 of 11

Financial Labor Labor Activity Total initiali rate of remuneration tremuneration investment retum I/ before finano. dfter finenc. (CFAF) t%) ICFAF/day) (CFAF/day) Bottor-land development11 ha) 523,00o 201 %5 aoo to 20 to 13

Fisheriesdevelopment (1 ha acada) 6554,000 60% 1;

Establishmentof fish-pondlextensve) 97,5 % *700 * (37% after financing) Vegetabiegarden (400 sq.meters)- 136,000 6i4%- 1,175 1,3S

Pig breedingnuclews R females,1 male) 1 000 100% 1.550 900

C=s9va proesising unit (gad) 3 58% 1,140 1,010

Cereabank(tons) 1 45 000 144% 11,140 1700

11 Financialrate of return f roposeactvtcalcuTante total Investment nclucinglabor . without taking into aooountthe proposedfnancing temus.

b) atuhr

14. The developmentof rural infrastructurewill consistmainly of smallworks to be carriedout at the villageor communitylevel, upon request fom the localpopulation and with its activeparticipation. Contributionfrom the beneficiarieswill bemainly in the form of labor,with a possibilityfor the useof food-for-workfrom WFP.These activities have to demonstratethat they providea solutionto a clearly identifedconstraint particularly in the most remoteand unaccessibleareas. The communitywould haveto be organizedin a Committeewhich will be in chargeof organizinglocal participationto the worksand maintenance. Other indicators would be requested before approving the micro-projectsuch as: numberof potentialdirect and indirect beneficiaries,traffic importance,present altematives, benefts andcosts. - 69-ANNEX S TOW" I Page5 of11

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gX3NNt - ~~~~~OL- - 71- ANNEX5 Tableau3 Page7 of 11 Piscicultureextenshie Itrou aA issom20m x 24mx I.ml s

du,e mmt6 Wnt Prix uni. panuede ow tO.nw An 0 An 1 _nordm MCFA) 8voo onordesen A 10

Coft totaux d'invesdwemen (FCaA) : I/ 9,750 97,500 0 tewxa de dduhebog etplquetep 21 10tOm Jr 1. 0 7 750 areueav moanudldu toou 2V 10 VW Jr 112 500 6,800 56.000 bllFtion doe 4guac21 10 JT 12.1 500W625 8,250 otu"ge c-ano wnmuniaofn 21 10 am JT 9 500 450 4.100 pett mnbel (bbchs, peg". seoux m.0n ..J 31w 3.000 30.000

Cot mon6talreo d'wploitatln (FCFA): 31 0 0

Travandeorixplotant: 2/ Jr 16 500 8,000 8,000 mine an oW. (branehegee Jr 1.5 mib on ehoe (pissono Jr 1.6 entetn (dehbgl Jl 1 otae (25 JT Iu 3 enw) Jr 7 rdlhe (p'l) iJr .

Revenu brnt IFCFA) 20.800 20,800 vaeur poison vewducu euec_oeommn4 klg 10 260 20,000 20,00

SOLDE NET AVANT FUJANCEMENT (FCFA) 3,060 4S7,500 12.800

taux de rentabiiit6 finaolre 5%

remuneration du tvil IFCFA/JT 691

PLAN DE FNANCEIUENT IFCFA)

contribution initials exploitant 5/ 3,900 39.000 0 subvention invsstissement 5,850 58,500 0 cr6dit MT 0 0 0 oredit CT 0 0

SOLDE NET APRES FINANCEMENT (FCFA) 8,900 -39,000 12,800

remuneration du travail FCFAIT) aps f1nanement 1,OS6

1/ CoOt. totaux, y compris Is contribution doe bWneficiaires sous forms de trvasi. 2/ La valour monetaire du travail oet osftnim on moyonne A 500 FCFA par Jour de travai (JT). 3/ Pour m4moire. Los coOto monetaires sont consldir6 commo nigiloeables danm lo modNie de piscioulture extensivo (empoissonneonent nara per inondation et/ou ohenai do cotmunication et p6ohe done to fleuve voisin, fertilisadon et arimentadon naturoilo par utillsaton de branchages eticu sous-produits agricoles). 41 Lo randament moyen, qui fluotue fortomnt on raison notammont du caract6re oMatoire de l'empoissonnaftent naturea, set estime e 2 tonnes/hat n. S/ Contribution does exploltants b6n6ficlaires ostim6e a: . 40% des oo0t, toteux d'investbssmont.

Note:; La rentabilite intrinseque de la pisdouture extensive set faibie. compto tnu de l'invostissement initial 6l*v6 on travail valorise A 500 FCFAIJT. Des possibiit6s d'intonoatin plus pousso exitont male no pourront etre introduites quo progressivemont. La mndeie extwnsif prisent lo ostenvisog commne une actvit d t appoint, destinee avant tout & ameliore Paiamntatdon au nivoau local awvc n6oossiti d'une subvention partieilo du coOt initial d'invastissement. La miss an place et l'expiitation du trou A poisson soemoffectueo par un groupoment d'uns dizaine de personnes.

Souree Estime our Ia base des donndoe fourmis per l projet pOh. elaunaire. mis an oouwe par Is Direction des POoh, eaw laide de Is GTZ. -72- - 72 - ~~~ANNEX5 Page8 of 11 TobatLez 4 Jo n mweaher 1400 m2l

dudo W*i com p.b miL 6afl.stoSW 10 fl An 0 An 1 .70A) twaa^l.mma _ n t b10

Coat.totaux dlinvestasanord(PCA: 1t 31,500 136,000 1.000 PA" 10 e.000 00,000 sm4li nlae 2 6.000 1.000 1o0.0 bmouett. so at 60.00 4.00 .0 bwmi lam 2 4.000 1.Wo 8.00 pOW, :sm 2 5.000 2,000 10.000 hoaa gem 2 1.000 1,00 RAW0 ehe4 2Sam 2 .,ao00 1.0 0 oGu,64upo 2 *am 2 1500 1.100 3.000 _Ots. SatSerum 1,00 t 0 110 bhiata 1son 1 4.000 o00 4,000 outdo at pul I an I1 1.000 1 1.000 1.oo0

Coat mon6tak" d'xpiltathan (PFCFAj: 19,760 . - 19.760

"Oh" 85 310 12,210 a a 0 0 a Im.cda3dee h.ll.~~~~~~~~~~~~~af5 14250 7.600 7.500

TwvsUde rexkoutu: 21 nT 122 600 73.200 73.200

RFvenu bnat (FCFA): 31 192.000 192.000 Obam. (mablm ponam 200 1.200 12000 12.000 Leima. (aata)aw aIt.- 0 0 0 0

SOLDENET AVANT FiNANCEMENT(FCFA): 70,160 4138,000 98.060 tmade * 84SSMfnaore

rdmmirsdan ddutrmva (FCFAIJT) 1,176

PLANDE FINANCEMENT(FCfA): comibudon iit exploitant 41 5.780 27.200 200 subventon lnvst"nismnt 23.120 108,800 800 or"dd Mr 0 0 0 crdt CT 6I 1S,750 19.750

&itb _ wd_i CT: P* 790tS 19.750 8.160 8,ISO

SOLDENET APPESFWANCEMENT (fCFA): 90,110 427.200 06.600

rdmwmlrston du ttwd (FCPAAITM)pebe fnonm 1339

11 CoOt. totseux y corpie to contrbution des bdn6fidalrs. 2/ Lo travail de rexpkotnt dam la _sus-pndfectuoode ComE aet viois A 600 FCFApar jour de trvail nJTI. 31 Eatuen dso recatts bnutos baos am to vuew nmrhardo totalo do Is prodution maratdr, sprk d6duction des porte etms A 20%. 41 Contution dos exploitantsbnoiw ostbln6 A: 20% des coOts tncuxmd'lnestsrmst. 51 CrEdit court temu pour oui clts monlta re6 doxptaietsilnp I in tAnt ditir` t amuni do 24% renbour*d srE 8 mois.

lote: Le modE do ,ardhnmatduher t ltai pour un groupdenmt dawron 8 prsnns. Un fracdon uignficadvo de to production seto autocansomm6o.

$auroa, Ete :a to bos des dndom fournles por lo sous.icrdfow do CO MRJCI - 73~~~~~~~~ ANNEXtf Page 9 oft 1I Novhudd Mvu nasa1 tUod+ I wand

as_6 qsi PtWi mS..u6m An0 AnI An2 An3f n4 Ar

0.000001mm d1avootnmt* (PPA): It 11.00 81.00 0 0 60*0 0 .2.000 bob"~ ~ ~ ~ .. 4.000 2.0 -.. 1*w4O"wm SiJu1Q00 6.00000 1. V" -t $AN o A SA bqd Ut.m I.e. 6 4.000 20o "~~~~~~~w 1 6.t 1,0 .0 CoOmmondmm ddrtodo O : 10e 110.000 110*0 i1bs 1100 110.00 _imd Wdod cox su,m ox=13s2z 48" 40 11St= 13AM0 CAN00 13.80 3. 13.00

TmvO dotl'm : 2/ if 40 W0 20.000 2000 20.000 20.000 20.000 20000 Remubnm _ 0se sS 1040e4.000 184A.0 184.000 184.00 14.00 _gpw w _. 40 .0 1"k m 164 00 108 0 164 . 0 00 16 000

SOLOSt AVANTr1 HNAiiCWiVv OA): 42.200 4100 53.w00 53.200 47.200 53.200 ".20o

umae de mnud fnlh.m 100_ ,6untuimaed do m.Aui (P080/fl) 1.56

PSAM0I AMNANO(Pl (OPA) :

owlb4ofi dde esptaut 4/ 2.200 10,200 0 0 0.000 0 .2.000 'sbver. dem 0 0 0 0 0 0 0 orddt MT 5I 6.600 40.800 0 0 0 0 0 Oda cT of 110.600 I 11o0t600 tio."o0 110.6001 iio.aol 110.,800

t10 20,400 20,400 0 0 0 99sn3,264 1.532 0 0 0

1 0O,O I 1t O,0 iw.e0ool nO.10001 t1,woa2 ttOAOO /s "XS21 26.59* 2.6921 26,02 26.5921 2S.592

SOLOA NILTAPR8 HNANCOM TOPA: l8,20 40.2001 28441 4.5761 20.8081 26.601 2.8.8

It CoOL tate00 compel toscaubon do b&Md**. 21 tisyd de rou_plolm WdesaSh6o t,tPOM ew T. 31 Cheq wtitt** an m e 0 pow _mmuddWokmp. as. 41 CcO*Ibde 1'wot" bi&WldWo 4: 20%S dos coOw Wtmm4'hwudmwsu SI Cd4dituwms 8mewe tmveltvtlr soO 1_41m dlgesmyam soaSsg baa ujauo _a%tMOdo uddit MT 80% dos c=am t"_N dwcot a Um dlet es*S pdutede do remmabmem 2 m of Cred& so tm mm u 0m EbIt de 24%

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t~~~~~~~~~~~~~~~~~~~~~~~~ Tean.formaton du mOI&C en aail

d8.6 WaM _WAIi p*t. 0.ttt=b.WOasa AntO An I An 2 An13 An4 Anf5 AnS .~ ~~~~~~~000" eo motor .OI CotO tot. Awoseam C IMA3,lt MM, 309,000 0 0 0 0 a 0 p.sawmAM APtA5 S. t 150250 1.O0 p PAMAt.-4owA ea. t 65A.0 14,107 6SSpC atttttt CV (1600"wAd 4oa. t 120.000 20.00 12.O00 patk. _%let 48.. 7.500 20.00 uIt *A*Gtos_ WpR401120"pIFC9: 511.00 511.000 511,00 511.000 511.00 511,0 511.000

p6obdopbMpeodsatb kg 41,a0 5 05.000 20s,000 20SA100 20t,000 205.0eo 20SA.00 205000 pls d.otwed he 165o 10 186,000 105.000 15500 155.00t6500 165sp.0 tos6oc boh .tO%VAb 10S.000 106AM0 10500 10.000 106.000 tos5m I_Not ta,Z 10.000 t1,o000 18S.0 16,0 t16.000 100O0 M__AVd. p.m- 2 2.6o 5.000 S00 50M 6.000 .00o 5A000 6.000 -mo. WA ti ?P007,000 7.0eo 7.000o ,000 700 700 7.000 818.m t..25 ago.d'.aM4o 6.000 0.000 6C0M DAN0 0.000 SAM0 6.000 Trwdo r.zhat.t: 21 if 300 600 100.000 1E0.000 1900000 180,000 180.000 190.000 180.000 Iewut Me WFA) 930.000 930.000 3M0.000 83,000t 93.000 0307,00 030.000 .MeAdo gd: vatilbwOnd"8ad. kg 5.000 57 510.00 510.00 510.00 610.00 510.000 510.00 510.000 P0. do ,#mm4 k4 3.0080 II7 420.000 420,000 420.0a0 420.000 4200 420.000 420.000

SOIM MrFAVAl?T FEIANC TFCFMAI: 1C2333 .130.000 239.000 239000 239.000 239.000 239.000 MW%000 tde A ruwa16t-m_ bmidk8% C rfidimme.dm,&s WWaAATM 1.141

PIAN DE F _UTCM ffCFAI: arW on kfttdohulr =lqitul 31 15,333 77.000 0 0 0 0 0 0 fhdolntion irlVOthUleAllt 0 0 0 a 0 0 0 0 Cidit MT 41 61,333 300.000 0 0 0 0 0 0 wddh CT U 811,000 611.000 S11.0o0 611,000 811,000 611,000 811,000

_ 51,333 102,667 1066J 102.67Z 0 0 0 Alf"or 8,213 24,640 16,427 ,23 0 0 0 r _.Aamlend CT: PA-4w sillooo,511,000 11.flow 659,100 6Z19000 511c,00 611W00 44800 44080NO 508 40ooo 445617 4880 4r0,80

SOWDEETAP PIEC ITfCMAI: . 123.240 .77,000 70,M13 r,79.027 .87,240 119.120 106.120 1S8,1

r&.e*adm, 61. trwl# (FCPA/JtI s stm ut t,Ott1.011

It Coes totem, y coxd Is cwntution des bkIfldae. 21 Trcel do 'ol'eot vodr A 600 fCMA par out de traval MII. 3t Coatribu6n des bltolaieso x*m60 &: 20% doe Oft. totsux dkwaesl.e.w. nt 41 CrOdit tmtn tm pows euwi We cobts ilixu d'ivmaostehnt, od.im st Ns beo suivanue: ttAlt dutct6t MT 80% ds CcOts ttmalx dblwnvm1Ioo 1m uux dcrkt&6 arud 8% pdrod do rwmboursmnt 3 w. - 6t Crdit court term pour couwvr We coOt. tnondtw6 d'oxpbPtla^ Aun tex dkAttt trui de 24% t _oroaptha 4 ntic

SoeU . Estikm mawto bow des dorauEs ftouW. pourt la S1out-pidtoCtu do Com6 (MICI - 75-ANX

lo= de06d t t me. -a x Page 11 of 11

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Se crEos maPedteA er do .4w _wv do eewru crd. se tCRnP 0 et iomb 101*1*2). -77- ANNEX6 Page 1 of 10

REPUBLIC-OF BENI

COMMUNITY-BASEDFOOD SEC=IMMROJE!C

Conmmnit NutritionaM

A. BackuOW I

1. Although,at the nationallevel, the mean dietaryenergy intake of the populationis above energyrequirements in Benin, regionaldisates and markedseasonal flucuaions in food availability inflictin certn years, severefood restictionsto somegroups of inhabitants. The diet of a large portion of the populationis monotonous,poor in esential vitamins,mineras, and low in protein and essential faty acids, causingwidespread anemia, localizediodine deficiencydisorders and sin of vitamin A deficiencyin specificareas. Householdfood consumptionsurveys were conductedby DANAin 1987- 1988,on five consecutivedays twice a year, among869 household,in elevendistricts of Benin. In the 11 districts surveyed, the mean dietary energy intake (by district) ranged from 1,650 to 2,400 Kcal/capita/dayI/ Amongthese, a mean dietaryenerg intakeper capitalower than 1,900 Kcal (93 % of requirements)was recordedin the districtsof Ze, Dangbo,Seme-Kpodji and Grand-Popo,at one season or both of the survey. High prevaence of growth retadation was found among children, indicatingsevere chronic malnuritIon. Low weigt for height fess than 2 standarddeviations below the mean according to the National Center for Health Statstics) indicating moderate to severe malnutriion, was recorded in 25 % to 35 % of the chldren below 2 years of age, in the "sous- prdfectures'of Zogbodomey,Agbangnizoun, Materi, Boukumbe and Kandi.Malnutrition is mostsevere before the age of 2 years and low weightfor heightusually declines to 10 % or 15 % by age 5 years. Ten percent of the babies born in Benin are underweight(ess than 2.5 Kg); 70 % of the children examinedin pediatricdepartments are malnourished;one third of those admittedfor malnutritionat the NationalUniversity Hospital Center of Cotonou,die (Source: DANA). Generally,infanto-juvenile malnutritionin Benin appearshigher than in regions of similar economicand ecologicconditions as shownin the table below:

Wastingratesli Africa

CountvowYew Age map dediatewe wasing1%)

set" 10S35 0.-50m9MUis 20.0

Togo 1036 0O-.mmt 53

Cemroun 177-76 3.46 ont 0.2 go& 1083-64 Ov50 month 21A

cor 1o6 0-t . Ghan 196740 0 -50 monfts 7.3 CtoIo iss 0.56 ,ots .

U. 1907 0 -3_Moth 11.0

W 109865 0 mUasl59 23.2 Cap-Ve 1085 12-72 onth 3.3

Sumndi 1067 -36 m - L65 Woro UNICE;I and W A giobai ginal and countr sM t of chid mantiOn, April 1990).

a/Dan, foodeV requrnit are edhoed by FAOat 2041 KalkapI. - 78 - ~~~~ANNEX6 Page 2 of 10

2. High prevalenceof iron and folate deficiencyanemia was confirmedagain recently by epidemiologicsurveys in Southernprovinces, includingthe city of Cotonou:over one third of all males and femalestested were anemic, and among women, prevalenceof anemia was 40-55 %. Half of the cases of anemia were attributed to iron deficiency which was particularly frequent in children and menstruatingwomen. The same high level of anemia exists in urban and rural populations,indicating that public health preventivemeasures are not more effective around urban health centers than in rural areas. Malaria is also an importantcontributing factor to anemia: more than 95 % of the individuals tested and affectedby anemiawere infestedby malaria (Plasmodiumfalciparum).

3. Iodine deficiencydisorders, are clinicallyevidenced by the high prevalence (19 %) of endemicgoiter in some north-westerndistricts. This has been documentedfor many years and confirmed again in 1983, in the Departmentsof Zou and Atacora. Prevalencewas highest in Natitingou,Copargo, Ouake, Bassila, Djougou. It was particularly frequent among females and it increases with age. In enclave areas of Atacora, Zou or Borgou, peasants consume almost exclusivelyhome-produced staple food, grown on soils which are of low iodine content. As a result endemic goiter prevails, causing hypothyroidism,slow growth, mentalretardation and cretinism. Diversificationof food sources by more intense inter-regionaltrade could reduce or eliminate this disease over a period of years. However, iodizationof salt or other forms of iodine supplemetationcould be more effective in the short term.

4. Surveysconducted by DANAhave shownthat vitaminA deficiencyis relativelyfrequent in the departmentof Atacora, particularlyamong children. Severe vitamin A deficiencyis the leading cause of blindness among children while night blindness occurs at the end of the dry season among childrenand pregnant women. In 1989, DANA recorded a prevalenceof 8 % of hypovitaminosisA in Materi (North Atacora), with a prevalenceof 3.4 % of night blindness. Accordingto World Health Organizationstandards, vitamin A deficiencyis a public health problem in some districts of the Atacora and Borgou Departments.In a recent pilot interventionprogram, the prevalenceof avitaminosisA was significantlyreduced by retinol supplementationin ten villagesof Atacora.

5. Many institutions, research centers and NGOs play a role in the field of nutrition interventions, mostly with very little coordinationand often with overlapping responsibilities. The Ministries concernedare: the Ministry of Health through their decentralizedstructures, hospitals and primary health centers; the Ministryof Rural Developmentthrougi DANA and its decentralizedstaff in the CARDERs;and the Ministryof Social Affairs through the interventionof Cathwel child monitoring progrm. The Ministry of Health implementsa decentralizedhealth and nutrition program through primary care centers. Cathwelmonitors the weight for age of about 45,000 childrenaged 0-3 years in 98 monitoringcenters. This represents5% of the populationof children in the 0-5 age range (900,000 children). Percentageof malnutritionof 30% to 40% are commonin a number of centers despite many years of nutrition educationand food dist,:bution to mothers. Interviewsof mothers of malnourished children suggeststhat poverty, rather than ignorance, is the main factor of infantile malnutrition. The University of Benin, NGOs, ResearchCenters (e.g. CREDESA)and others also intervene in nutrition training and education, sometimesin associationwith incomegenerating activities for womengroups.

6. In spite of such a diversityof adors, nutritionalstandards in mral areas remain low. The effectivenessof the variousactivities remains to be provenin terms of acual decreaseof rates of protein- energy malnutrition,micro-nutrients deficiencies and morbidity.The accessof the vulnerablepopulations to social services is inadequateand the results of interventionsare poor. The fact that the Government does not have a concertednational nutritionpolicy is probably a key factor in the lack of clearly set priorities and in the attributionof institutionalresponsibilities for the implementationof an agreed action _- /9 ANNEX6 Page 3 of 10 plan. It is thereforeproposed to build on the experienceof the proposed communitynutrition program and other on-goingactivities to test the effectivenessof strategiesto reduce the prevalenceof nutritional deficiency disorders and prepare a national nutrition strategy. The ConsultativeGroup on National NutritionPolicy (CGNNP) should be reactivatedto help a) assess the relevance and effectivenessof nutritionintervention techniques; b) exploreother interventionstrategies as recommendedby international consultativegroups (e.g. IAVGG); and c) design coordinatedset of actions to reduce effectivelythe prevalenceof major nutritionaldisorders in associationwith anti-povertyprograms.

7. DANA, in recent years, has been unable to adjust its role in the context of the restructuring process which took place in the Ministry of Rural Development and has remained operationallyweak. Its commercialfunctions (baby food productionunit and horticulturalcenter) absorb most of its resourcesand are today contested. Moreover,although DANA could probablyplay a relevant role in the coordinationand monitoringof nutr:ion activities, particularlyif related to the preventive aspects of interventions, overlapping functions with the Ministry of Health are still a source of controversy. Institutionalcapacity building centered on identified needs, could markedly raise the effectivenessof existinginstitutions so as to refocustheir ObIectivestowards the actual reductionof the prevalenceof malnutrition. The redefinitionof the role os DANA in line with the restructuringprocess of MDR and the preparationof a coherentand feasible action plan would be an importantelement for DANA interventionin the project.

B. Objectivesand Strategy

Targets and obJectives

S. A study conductedduring preparatoryactivities of the pilot phase of this project (see Annex 3 and Workingpaper N.2) has identifiedthe areas which are most vulnerableto food insecurity. Tbis was made on the basis of observed rates of malnutritionduring eight years, seasonal and regional distributionof mainutrition,dietary energy equivalentof food crops, cash value of crops, cost of basic diet, access roads, distanceto nearest town and availabilityof arable land. Different compositeindices have been tested to rank areas in terms of risks. Using these scores, eleven "sous-Prefectures"ranking highest in term of vulnerabilityto food insecurity have been classifiedas "first priority areas at risk". Nine 'sous-Prefectures' with slightlylower vulnerabilityscores, have been classifiedas 'second priority areas at risk'. These are the areas targeted for micro-projectand nutrition in,terventionsby the project.

9. The table below indicates the targets and objectives of this component in terms of coverageand reductionof malnutrition. The communitynutrition program would directly monitorthe growth of about 48,000 childrenbetween 0 and 5 years of age and follow-upabout 20,000 lactatingor pregnantwomen. Throughthese interventionsmalnutrition rates in projectareas are expectedto decline from 30% to about 21% (or about 30% reduction). -80- ANNEX 6 Page 4 of 10

Toioto hdoatoam 19965 1938 197 1996 1699

a) R_t popdoo_ of MJo ama 670,000 896.000 922.000 9448.000 976.00o

bh Ctin 0 Voa 166.300 170.000 170 ,000 18S,000

el NbF.n-ulwuohod cNdun 130% of b) 46,600 51.000 52.000 54.000 55.600

U Nb. CNW so 100 200 300 400

*) me. ehidn InhWiWth Our naa ach .000 10.000 20.000 30.000 40.000

f) Mbeeavntad tma of _nmd. by 1,750 3.500 7.000 10.600 14.000 guravl.(35% of a) I_____

el F.e.ohidmn In suplkm tlodng 126% of 1,250 2.600 S,000 7.500 10.000

faw.1) AM=dnhabcentom tnfamdto 1SO 375 760 1.125 1.500 115% of g) _ _ _ _

U Nb. pu vanted caeo of _nhwtby 431 o8n 1.725 2.588 3.460 aupplam feedin & thab cent_i (30%

p TOW Me. pe*atod caoes of umL. 2.161 4.363 3.725 13.088 17,460

hi Puawno eunutof In pomjt am_ 26% 27% 26% 23% 21% (dth prJeect) _

U Oma rducdon ofm _ddO. 4% 9% 17% 24%A 31%6

ad IsdMteAS d an P.enactedno 26.100 26.900 27.600 29.400 29.300

") Wom in moandy fosow-up 126CI"W) 1.2S0 2.600 5.000 7.500 10.000

el Womn hI lacttIn bloww 12/CtW 1.250 2.500 6.000 7.,00 10.000

General srtg

10. The general strategy of this componentwould be two-prongoriented:

a) Ensure a clese linkagebetween incomegenerating activities and nutrition interventions. Most of the micro-projectsto be implementedthrough the project for incomegenerating, socio-economicand micro-infrastructureactivities, will not specifically address the reduction of malnutrition, but rather aim at alleviating poverty, producing food

iL The numberof childrenin gwth surveianceshould be approximatelyfifty by Cl 'Vat all times. Childrn withsatisfactoy growth (about one thirdof the monitordcohort) or whoreach age S, will ceaseto bi monitoredevevy month and wouldbe teplacedby childrenin needof assisance.Therefore, eah CNWwill monitor the grwth of abouttwice the numberof S0 child:enper year. It is estimaed dhat48,000 children will hae been monitoredfor grOwthand/or will bavereeived supplementay feeding. Underthese assumptions, approximately 24,000 cases of severemalnutrition will havebeen prevented. -81 - ANNEX6 Page 5 of 10

commodities,rehabilitating small infrastructureor providing services. However, since improvementof nutritionalwell-being of vulnerablepopulations in the targeted areas is a centralobjective of the project, interveningNMOs will be askedto facilitatein the same villages,the initiationof nutritioninterventions along with micro-projectimplementation. Empiricalevidence shows that nutrition educationcarried out in isolationfrom poverty alleviationefforts has very limited impact on the improvementof the nutritionalstatus and that in the mediumilong term, poverty alleviation is the leading factor to improvementof nutritionalstandards. Therefore, the project will encourageNGOs to combine income generating and nutrition activities. This would broaden the effect of both interventions and be a more cost effective approach to development impact. Moreover, nutrition interventionswould benefit from the structure already in place for the micro-projects. he project would seek participationof nutrition-specializedNGOs or from DANA. The latter would be responsible for specifically implementing eradication campaign of deficiency disorders in collaboration with other specialized agencies.

b) Ensure a preventiveapproach to reducing malnutritionthrough empowermentof local community nutrition workers, re-"lar training and better use of existing resources. Implementationof child growthmonitoring and nutritionalsupplements distribution would be decentralizedat the village level under the responsibilityof a female community worker selectedby the village. Regularnutrition education and supervisionwould enable the communitynutrition agent to pursue its preventivemalnutrition control even without the proj,_t and therefore ensure sustainabilityat the ground level.

C. Organizationof the communitynutrition program

11. The communitynutrition program would be implementedin the field through nutrition- qualified NGOs and village communitymembers. Coordinationand support would be a collaborative effort of the DANA and its decentralizedpersonnel in the CARDERs, the Ministry of Health and the Ministry of Social Affairs through Cathwel. The Universityof Benin through its Nutrition and Food ScienceDepartment would be responsiblefor part of the training and the evaluationof project impact.

12. In the areas of project interventions,NMOs qualified for nutrition interventionswill visit potential beneficiary communitiesto inform them of: i) the objectives of the project, ii) the type of interventionsenvisaged, iii) the potential benefits for the community,iv) what is expected from local groups interested in participating,and v) how to proceed to becomeeligible. During the first visit, the NGO will meet with communityleaders and primarily assess their interest in participating. If the villagers are interested, a date will be set for a second appointnent.

13. This secondappointment, made two to four weekslater, is meantto discussmore specific aspects of the nutrition interventionsenvisaged, after community members have discussed among themselveswhether they wish to participate,as it requirestheir contributionin time and efforts. During the second meeting, questions from communitymembers will be answered. The relationshipbetween nutritionalsurveillance and incomegenerating activities will be made more explicit. The NGO would continueto assess the degree of interestof the community. If the communityis willingto participateIn the program, the NGO would explainhow villagerswould have to select a communitynutrition worker (CNW) on the basis of specific criteria. A village nutritionadvisory committeewould also have to he -82- ANNEX6 Page 6 of 10 constituted.If villagersare interestedand want to proceedwith the nutritionintervention proposed, a third appointmentwill be made for a date two to three weeks later.

14. During the third appointment,questions will be answered and the commitmentof the communityassessed again by the NGO. The CNW selected by villagers will be interviewedand his qualificationsascertained. Individualsselected to become CNW should preferably be mature women, living in the community,with some basic education,and skills in traditionalmedicine recognizedby the community. The compositionand representativenessof the village nutrition committeewould also be ch,cked. If all basic requirementsare met, an agreement will be signed between the interveningNGO and the CNW defining the work program and the commitmentof each party. If, on the contrary, the villagecommunity has not selecteda communitynutrition worker and not demonstrateda genuine interest in the project, the NGO in charge will cease to visit the villageconcerned and will move to other villages which might be interested.

15. CNWs shouldaccept to be responsiblefor the nutritionalsurveillance, growth monitoring and mineraland vitamin A supplementationof childrenaged 0-5 years of age, and pregnantand lactating women,in their neighborhood. Only malnourishedchildren or suspectedcases of malnutritionwould be monitored. Recoveredcases of malnutritionand childrenreaching the age of 5 would be replacedwith new children. Overall, every CNW would monitoran averageof about 50 childrenper month, or about 100 childrenand 50 womenper year. Familiesare usuallyashamed by the malnutritionof their children and reluctantlyshow them to strangers, community-basednutrition agents have the best chancesto access these cases of malnutrition.

16. QualifiedNGOs are expectedto be in close and periodiccontact with the CNWs through local supervisors. When a CNW has been selected,arrangements will be made for her training and for meeting regularly with her supervisor. krrangements would be sought with existing decentralized structuresand staff from DANA(posted in the CARDERS),the trainedagents of the local primary health care centers and CATHWELsocial centers staff, to implementsupervisory work. To the extentpossible, maximumuse would be done of staff from existingstructures and only in case of unavailabilitywould contractual staff be recruited by the NGO for supervisory work. Supervisors would help CNWs to organizetheir activities,to advise womenand plan resources needed for training, supervision,feeding and mineralsdistribution. Supervisors would also be in chargeof linkingwith NGOsand regionalmedical services.

17. Supervisorswill initiallyvisit each CNW about every two weeks at a mutuallyagreed time for the amountof time required to make the communitynutrition project work. It is estimatedthat initially,on average, a supervisorwould visit about fifteenCNW per fortnight. This will be flexibleand adaptedto the needs of the CNWs, the complexityof nutritionproblems in the area and distancesto be travelled. Supervisorywork would diminishin intensitywith the progressivetransfer of capacity and proven acquaintanceof the CNWs to work requirements. After the first six months of operations, supervisionwould be made once a month and after the first year, supervisionwould only be carried out for CNWs experiencingdifficulties in implementation.Supervisors will remain in close contactwith the responsible NGO and their performanceregularly reviewed. Incentivesto the supervisors would be discussedwith the responsibleNGO accordingto their performancein reducing malnutrition.

18. Equipment. Each supervisorwill be providedwith a motorcycle to visit the CNWs and allowanceswill be made for fuel, repair and maintenance. Each CNW would receive an allowance in kind of about 2.5 Kg of staple food per day of work. Food from the WFP can be requested for this - 83 - AN Page 7 of 10 purpose. A bicycle may be required in certain cases for CN?V'svisits. Each CNW would be supplied, via the responsibleNGOs, with a basic equipmentand supply kit to carry out the program. Equipment will include:one infant scale (springtype with hangingtrousers, max. capacity25 Kg); height and length measuringistume, forms, pen, pencils, eraser; iodine in salt measuringkit; thermometer,bandage, gauze-pad,scissors, tongue depressors, towel, soap, basin, miscellaneous.Estimated cost: US $ 700 per equipmentkit.

19. Supplies. The minerals,vitamin supplements and drugs will include:antianemic ferrous sulfate, folic acid, iodinatedoil, iodizedsalt, vitaminA, diarrhearehydration salt (ORT), antihelmintics, analgesicsand disinfectants.Weaning food would also be included in collaborationwith DANA and UNICEF. Supplieswould be renewed as needed duringthe project life.

D. Descriptionof the communitynutrition program

20. The objective would be to move from direct assistanceand provision of services to a progressive transfer of responsibilityto communitiesthemselves on a self-help basis. The role of supportingNGOs and CNW woud evolve along three levels of support to care-providersof children, rangingfrom short term to long term goals:

a) Immediatedelivery of servicesto reduce the severity of malnutritionand health problems of children. Controllingthe three major micromntrientdeficiencies (iron, Iodine and vitamin A) and combating protein-energy malnutrition. Referral of severely malnourishedchildren to nearest health center.

b) Educatingwomen by frequent discussions and demonstrations. Ihis will have more mediumterm impact on their abilityto reduce the prevalenceof malnutrition.

c) Empoweringwomen to controlresources and generateadditional income. Promotionof householdfood security by increasingavailability of food, preservationand access to food by poor segmentsof the population. This third aspect, whichis aimed at long term impact, is the major link with the other activitiessupported by the project.

21. In order to achievethe goals indicatedabove, each CNW will conductthe followingactivities:

1. - Growth monitoringof children aged 0-5 years to identify children 'at risk' and provide assistancein recuperationwhenever necessary: treatment of diarrhea, adviceson breast feeding, enrichmentof the diet in protein, vitaminsand minerals,preparations of weaningfoods by groups of women, weighingchildren and using large growth charts for villagediscussions of the causes of malnuition...etc. Micro-nutents deficiencieswould be addressedby the distributionof supplements. In the case of iodine deficiency,the techniqueof Slicone lastome, releasing iodine in drinking water from village wells would be used. This techniquerequires very little input or supervisionand its cost effectivenesshas been proven in neighboringcountries. For vitamin A, "gari flour"V/enrichmen offers a very good opportunityto link incomegenerating activitieswith nutritionimprovemens. The productionand distributionof palm-oil capsulesrich in beta-carotenewould also be promoted.

3/Gari is a roasted coarse flour made from cassava. It can be enriched in beta-carotene (a provitamine A) by adding a small amount of palm oil. - 84 - ANEX6 Page 8 of 10

2. - Educationof women: an analysisof the causes of malnutritionwould be conductedby the nutrition communityworker once she is trained. Malnutrition, infant mortality and growth retardationobserved in the villageswill be used primarilyto raise awarenessof villagerson the causesof this situationand assist them In the selectionof appropriatemicro-projects to correct poverty and malnutrition. NGOs will use participatory methods: discussionswith villagers, theater play by children,examples of successfulrecuperation of childrenfrom malnutritionand other demonstrationsto conduct food security and nutrition educationsessions. Initiation of micro-projectswiUl follow the Analysis-Action-Assessment(triple AAA) approach of UNICEF. Successiveinitiatives are tested in a AAA cycle until the interventionsproduce the expected outcome. Recordsof these activitieswill be kept by each NGOsfor the on-goingmonitoring and the final evaluationprocess.

22. M r . Data collectionwil be organizedtogether with the NGO and the project managementand monitoringunit. It will includecollection of morbidityand mortalitydata. Mothers or caretakerswill be instructedto record episodesof diarthea, fever and anorexiafor all childrenaged less than 5 years, usingprinted pictograms. Ihe evaluationof the impactof the nutritioncomponent would be carried out by the Universityof Benin (see Annex 7).

E. Eradicationof defli= disorders

23. In project areas of particularlyhigh prevalenceof deficiencydisorders (iodine, Vitamine A, and iron), DANA would also implementeradication campaigns together with other specialized institutions.DANA, in cooperationwith OCCGE(Office de CoordinationContre les GrandesEndemies in Togo), and the Ministry of Health could in particular help for the eradicationof iodine deficiency disorders. This would include: a) mapping the prevalence of iodine deficiency disorders (IDD); b) select for each zone or village,the mostappropriate method of intervention:iodized salt, intramuscular injection of iodized oil, oral intake of iodizedoil, equipmentof village wells with siliconeElastomer releasing iodine in drinking water, c) implementi6 and monitoringthe impact of such interventionsin areas of high prevalenceof IDD.

F. Trini

Traiing of NMOsstaff and supervisors

24. DANAnutrition etension workers,supervisors and NMOsfield staff qualified.innutrition interventionwould be trained, if required, at the NationalUniversity of Benin (UNB)in cooperationwith DANA, UNICEF, CREDESA, the Agricultural University in Wageningen (Holland) which has cooperatedsuccessfully with the UNBsince 1983and trainedagriculture students in several field related to nutrition. Tbis would consist in training sessionstwice a year, (five days each time) in community nutrition interventions. It would includeassessment techniques on the impactof poor nutritionand poor health on work productivity, comparativeimpact of alternate strategies to reduce malnutrition, cost effectivenessin the reductionof mineral and vitamin deficiencies(iron, folate, iodine and vitamin A deficiencies),use of nutritionsurveillance for interventiondesign and nutritionplanning. The maximum number of participantswill be 20 per session. DANA and NGOs field staff will be invitedto present case-studies. This training will be as decentralizedas possible and includepractical field experience, short visit to project areas by professors or invited academics from neighboringcountries as well as discussionsand observationsin villages. - 85 - AM= 6 Page9 of 10

25. Someof the formerstudents who have received such traiing are nowwoddng with local NGOsin Beninand have createdlikages betweenfield work and academicactives. Ihe assistace of such competentagencies in the desigpof the nutritiontaining packagewill ensure an adequatelevel of expertisefor boththe implemeion and futher evaluationof the project. 26. In somearea of projectintervention, community nutrition activities and educationmay alreadyhave been initated by vaious organzationsand NMOsthrough local "Aaices rurales femaleextnsion agents, "Centresde Promotionsociale^, "Centre de santomaternelle et intle", or ^Centreshorticoles et nutritionuels'..oordination and collaboration with the staffaheady in placewould be soughtincluding, If reqred, provisionof training9supply and eqpment so thatthey could participate in the implem on, supervisionand monitoringof the nutrAionInterventions. Nutrition extension workerssupervising CNWs would also receiveregular suppor and guidancefrom the NGOin charge of Implementingnutrition activities in his area. 27. A 'guidelinesmamlal" for the use of supervisorsand CNWswould be preparedin collaborationwith the projectmanagement unk, DANAand inteveningNGOs. Ihis mamnalwill specify in a simplifiedway aUthe tasksto be conductedby eachparty in the implemenationof the community nutritionprogram and the differen steps requiredfor proper combinationof nutritionand income generatig activities.

28. NGOs staff conductingnutrition terventons and the nurition agents involvedin supervision(DANA, health centers,Cathwel), wil be responsiblefor strengthen the skll of the CNWsby frequentand pertinenttraining so that theywould be ableto undertakethe followingtasks:

- Growthmonitoring of hildren0-5 years - Use of cere-pulses mixedflour as weaningfood - Oralrehydration against diarrhea - Promotionof breast feeding - Reducdonof parasite infestation - Reductionof iron deficiencyand folatedeficiency - Reductionof iodine deficiencydisorders - Reductionof vitamin A deficiency -Referralof mostsevere cases to nearesthealth center or nutritionrehabilitation centers (Centre de recuperationnutritionnelle or CREN)in the area of inevention. - Group discussionof causes of malnutition -Identificationof incomegenerating projects - Asess_m of cost andbenefits of micro-projects G. Nsks 29. During the pilot phase, it appearedthat some NGOs involvedIn agricultura or infrsruE ure micro-projectsdo not necesarly haveth experti to improvefood consumptionand the nutrional statusof vulnerablepopulaions. Consequenty, they often pereived "nutriionintervendons" as a tediousand secondaryactivity in relationto their main objectivesof agriculturalproduction or costruction of infrastucture. Some NGOsindicated that weighingand examiningchildren, was a cumbersometask imposinga burdenon mothersto whomno immediateassistance could be given. In - 86 - ANNEX6 Page 10 of 10 orderto solvethis potential cause of failure,nutridon intaventions will be entrustedonly to qualifiedand trainedNGOs. Theywould be equippedwith required instruments and suppliesto providesome direct formof assistanceand enhancethe relevancyand acceptanceof their advices.Such NOOs have already indicatedtheir ierest to participate.In addition,close supervisionof CNWswill ascertainthat the nutritionalstatus of childrenresponds positively to the inuventionwithin a periodof a trimesteror less. 30. Anotherrisk comesfrom the populationsthemselves: often they do not seemto perceive the reductionof malmntritionand infat mortalityas a priority. Consequentlythey are not always motivatedto participatein monitoringgrowth and malnurition among children. Theirmain concern and highestpriority is to find meansto increasetheir cashincome. It is thereforecentral for the proposed programto link reductionof malmntitionwith incomeopportunities. Therefore nutrition interventions wouldalso be used,to a large extend,to assistthe mothersof vulnerablechildren increase their access to foodand additionalincome. - 87 - ANNEX7 Page 1 of 7

REPUBLICOF BENIN

COMMUNITY-BASEDFOOD SECURITYPROJECT

Monitoringand Evaluation

A. Backgroundinformation

1. A cle. distinctionwill be made betweenthe terms of "monitoring' and of 'evaluation' both in the conceptand in choiceof the executingagencies.

a) Monitorin will refer to the regular supervisionand follow-upof the progress made towards deliveryof goods and services, constructionof infrastructures,disbursement of credit, compliance with reached agreements, etc... Monitoring would therefore be consideredas a 'process' orientedtask and as a foUlow-upof Winputs'aiming at verifying whether the project is implementingthe intendedinterventions as planned.

b) Evaluation, on the other hand, wiUlrefer primarily to the impact of the project on the beneficiariesaccording to pre-establishedindicators and gauge progress towards the achievementof the project objectives.It is therefore an *output*rather than "process" oriented approach.

2. In order to increasethe objectivityof the evaluationprocess, monitoringand evaluationwill be conductedby separate institutions. Monitoringof the implementationof microprojects and mntrition interventionswill be under the responsibilityof the project monitoringunit, whereas the evaluationof its impact will be conductedmostly by the Faculty of AgriculturalSciences of the NationalUniversity of Benin (UNB).For both monitoringand evaluationwork, other relevant insttutionswill be called upon to collaborate,provide assistanceor carry out part of the M & E. The Ministryof Rural Development and project cofinancierswill also monitorproject imrlt ementationthrough reports, monitoringstudies, audits, supervisionmissions and beneficiaie3 assessmenttechniques.

B. Monitoringof project activities

3. Monitoringwill be the responsibilityof the MMU, based on reports from participatingNMOs, field visits by MMU staff and 'ad hoc" surveys requested when necessary from consultants. Each participatingNGO will indicate every semesterprogress made on each of the microprojectsunder their responsibility.These forms would be designedby the MMU accordingto each project implementation scheduleand objectives,in such a way as to be processedby a computerdata managnmentsystem. Key indicatorsto be used for monitoringwould be elaboratedin collaborationwith the UNB in charge of the evaluation to ensure and enhance their relevancy for future evaluation. The information would be analyzedand transmittedto UNB so as to permit appropriateplanning. The informationgenerated will be consolidatedby MMU and used for the preparationof its semiannualprogress repots to be sent for discussionsto the CoordinatingCommittee and project financiers. The table hereafterprovides an estimate of monitoringindicators for project activities.However, given the demand-drivenapproach adopted, flexibilitywill be essentialand timetableswill have to be adjusted annuallyto respond to communities' demand. - 88 - ANNEX 7 Page 2 of 7

a) Key indicators used for monitoring

4. In view of the diversityof the microprojects,the selectionof indicatorswill be tailored to each combinationof interventions.However, a numberof specificindicators will be similarfor the same type of interventionto ensure comparabilityin assessmentof progressand achievement In addition,the degree of beneficiary ownership and involvementin the decision-makingprocess related to micro-projects preparationand implementationwould be assessedas a prereqisie for the contnuation and sustainability of the activities.For each micro-project,data to be collectedby the NGO and MMU would refer to:

Income generatingmicrogrojects

Numberof participants/beneficiaries. Area to be developpedfor irrigation,bottom land mnagemet,.. Completionof works Workloadof women Characteristicsof productions/services Agriculural output produced and sold by household Prices of commoditiesaffected by microprojects Days of work required/microproject Average cost per microproject Status of storage facilities(rotation of stocks, % of fillin) Credit stats (amountslent, amous outstai, cost reovery situation, inte rates, etc..) Income generated

nkaastturs

Numberof direct and indirectbeneficiaries Status of works Number of working days suppliedby the community Numberof jobs created (person/days) Food for work distributed(daily rations) Cost of construction Maintenancecapability Access before and after microprojectcompletion (transportation cost, traffic importance,

Nutritioninterventions

Anthropometic and mntritionstatus before and after intervention Level of nutritionalknowledge of care-providers Quantiy of food distributed Number of childrenweighed Numberof mothers attendingsessions Iron, folate, iodine, vitamin supplementsdistributed Oral rehydrationtherapies initiated Morbidityand mortality Cases of rehabilitationof severe malnutition Initiationof incomegenerating activities - 89 - ANNqEX7 Page 3 of 7

b) Monitoringof N(OOsperformance

S. In additionto the informationcollected through the forms to be filled by the NGOs, supervision missionswill visit micro-projetsand communitynutrition interventionsat regular intervalsto assess the progress made. NGOs performancewould be assessed yearly, when approving budgets and working programs, accordingto progress made In achievingtargets and the capacity to mobilizebeneficiaries participation. If a NGO is not performing satisfactorily, a decision will be made regarding the continuationof the collaborativeagreement between the project and the NGO by the Coordinating Committeeafter propositionof the MMU. This will be made on the basis of all relevant information availaibleto the Project and the decisionwill be notifiedwithin mutuallyagreed delays to the NGO.

c) Monitoringof compliancewith financialand procurementcovenants

6. MMU wouldset up an analyticalaccounting and financial managementsystem to monitor costs by activityand by site to develop standard costsof works, goods and services and maintaintheir level at competitivestandards. An auditfirm wouldbe recruitedby the Governmentto verify compliancewith the procurementand disbursementarrangements under the Credit Agreementand the implementation manual. They would also review the financialstatements, the performanceof the cost recovery system and of financial management.

C. Evaluationof impact

7. Since the project aims at alleviatingpoverty and reducing food insecurity and malnutrition, evaluationwill focus on a) food supply, stability and access indicators;b) householdincome, stocks, workload of women, socio-economicstandards of living; and c) nutritional status, anthropometric indicators,health of participatingpopulations.. .etc. The objectiveof the evaluationis to assess whether the projecthas improvedthe qualityof life of the beneficiariesinside and outside the direct intervention areas. The project might have a spill-over effectbeyond the targeted communities.The indicatorsused will also include non quantitativefeatures, such as communityparticipation, access to information, mobility,preservation of valuableskills and traditions,status of women and other variableswhich will be part of the evaluationscheme.

a) Organzatio

8. The Faculty of AgriculturalSciences (FAS)of the National Universityof Benin (UNB)would be the lead agency responsiblefor the overall evaluationof project impact. As such, it will have the responsibilityof conductingan initialbenchmark survey and a final appraisalof micro-projects'impact, out of a representativesample of micro-projects.UNB and MMU will carry out the samplingdesign of microprojectsto be evaluated. UNBwill make arrangementswith its own staff, studentsor with reliable techniciansto survey the householdsbefore and after completionof the microprojects.

9. The MMU will review the proposed evaluationscheme and will sign a formal agreementwith UNBfor each set of microprojectsindicating the methodsof evaluation,the cost and the dealine at which the evaluationreport will be handedto the MMU.The methodswill be based on approvedscientific and ethicals standards of biological and social sciences. If blood samples are considered necessary, the informedconsent of the participantswill be obtainedprior to the surveys. - 90 - ANNESX7 Page 4 of 7

10. UNB will be authorizedto commissionspecific evaluation tasks to other centers or institutions (DANA, CREDESA, CATHWEL...) provided that these institutions are not already part of the microprojectto be assessed. Wheneverpossible surveys would be grouped in such way as to minimize transportationcosts and durationof field work.

11. Intermediatebeneficiary assessment would also be conductedwith participatingNGOs to gauge relevancyof the interventionswith respect to beneficiaries' expectations.Effective targeting of rural groups wouldbe evaluatedto ensurethat the most disadvantagedsegments of the rural populationbenefit of project activities. Group discussionswith villagers would be the basis of beneficiary assessments, therefre villagersshould have a strong say in the evaluationof the microprojectsand a clear perception of its impact, if any.

12. To the extend possible, micro-projects' impact on targeted groups would be compared to a withoutproject situationof similargroups in the area, to assess the changes in standardsof living and nutritionalstatus broughtby the project.

b) Nutritionactivides

13. The most valuable input for the evaluationof the nutritioncomponent would be the Information collectedby the CommunityNutrition Workers (CNW) during her monitoringactivities. CNW will in particular instruct mothers on how to record episodesof diarrhea, respiratory diseasesand clinicalsign of nutritionaldeficiencies in the childrenaged 0-5 yearsthat they monitor(Proteino-energetic monitoring, irondeficiency anemia, iodine deficiency disorders, andvitamin A deficiency).Anthropometric indicators for childrenwill includeheight for age, weight for height and weight for age. If this has been performed in a satisfactorymanner, it will also be used to evaluate the changes in wnorbidityamong project's beneficiaries.

14. Family members in vrlnerable groups benefittingfrom the project, will undergo a rapid survey on sgns of nutritional defieiencies including anthropometricmeasurements (weight, height, arm circumferenceand age of children)by the evaluationteam. Adults will be interviewedon their food consumption.Dietary recalls and food frequencyrecords will be used to assess changes in the dietary pattern of childrenand adults. Food compositiontables will be updated and computationof caloric and nutrientscontent of the diet of the beneficiarieswill be undertakenby DANA and UNB. If detrminations of biochemical indices are necessary as part of the interventions against iron, iodine or other micronutrientsdeficiencies, a contract will be made with DANA for the laboratory analysis of the samples.

15. Resultsof measurementsand salientobservations made (anthropometry,clinical exam, biological tests,...) should be explainedand displayedto participatingvillagers. Clear and visible explanationof progress made should be given and shown regularly to villagers to generate interest and support for nutritionactivities.

c) Micro-projects

16. Micro-projectsevaluation will not be limitedto quantifiableoutputs and pre-identifiedtargets but will extend to a qualitativeanalysis of behaviouralchanges of groups in communitydevelopment and sustainabilityat the ground level. - 91 - ANNOU Page 5 of 7

17. A number of indicatorswill assess the intrinsicqualities of the microprojectsfrom a long term perspective:

a) tho relevanceof the microprojectas a responseto the identifiedcauses of food insecurity, b) the adequacyof group targeting in reference to the most vulnerable segments of the community, c) the replicabilityof the interventionconsidering its cost and nature, d) its sustainabilityin term of likelihoodof continuationbeyond the micro-project'slife, e) the changesin attitudeaffecting the community'scapacity and willingnessto undertake other activities, f) the long term impacton the environmentof the selectedmicroprojects.

18. The evaluationof the immediateimpact on beneficiarieswill comparethe before/afterstatus of relevant indicatorson a representativesample of micro projects. They include:

a) Diet diversification: estimates of consumption of staple food and frequency of consumptionof valued foods such as pulses, fruits, vegetables,meat and fish. b) Availabilityand marketing:food prices, food processedand food sold, stocks. c) Revenue: householdincome, debt situation,performance of the cost recovery system, incomedistribution among the group, udlisationof income... d) Work load: work load of women,changes in use of tools, distancesto markets, mode of transportation...etc.

D. Taining in monitoringand evaluation

19. Practical trainingsessions to NGO staff in project monitoringand evaluationtechniques will be given at an early stage by the project monitoringcoordinator together with the UNB. This will include the selectionof appropriateindicators, verification of accuracy,data collectiontechniques, reliability and statisticalvalididy of data.

20. Some short term additionaltraining would be provided to DANA and ONASA officials in monitoringand evaluationtechniques for food securityand nutrition,and in establishingand maianing relevant and effective data base for better use and integrationinto national informationsystems.

E. Nationalmonitoring of food security and nution

21. The National Bureau for Support to Food Security (ONASA- Office National d'Appui a la SecuriteAlimentaire) has been restructuredin 1992 withthe followingmain functions:a) monitoringof the food security situation, prices and markets both nationally and regionally, and diffusion of the information;b) monitoringand following-upthe agriculturalcampaigns and detectingin advancepossible shortages through an early warning system; c) improvingthe private sector operations and export opportunitiesby centalizing internationalmarket information and food requests and establishingan informaf'n exchangecenter; and d) advisingthe Governmentin the formulationand implementationof a food -Ity strategy, includingpossible proposals for food imports (commercialor aid) if deemed necessat,

22. A numberof marketsare regularlymonitored as part of a nationalprices and marketsmonitoring system.The projectwould complement ONASA monitoring activities by expandingthe present coverage - 92 - ANNEX 7 Page 6 of 7 of 15 primary markets to 13 additional secondary markets in project areas. this informationwould enhancerelevancy of the informationalready available and wouldhelp evaluateproject impactin r -!ected areas in terms of food access and stabilityof supplyand prices.

23. The project, whichhas monitoringsites in areas at risk, will thereforecontribute to the expansion of ONASAdata base and also help identifyingand documentingnew opportunitiesfor investmentsin incomegenerating activities in those sites. It wouldcommunicate the indicatorscollected by NGOsto the monitoring and evaluation unit of ONASA, which will be in charge of mapping all food security initiativesat the nationallevel and have a more pro-activerole in promotingprivate sector activities.The project would also help ONASAupdating and analysingthe present data bank on areas at-risk and contributeto the settingup of a permanentsystem of food security monitoringand informationsystems.

24. The MDR's Sectoral Analysis and Planning Directorate (IAPS) would also be involved and participatein monitoringproject activitieson behalf of MDR, as part of its role of overall agricultural projects planning and coordination.

25. A CoordinatingCommittee comprising representatives of the Ministriesconcerned, NGOs and donors wouldbe establishedbefore the projectstarts to maintainthe dialogueamong the differentparties and monitoroverall project implementation.It would meet twice a year.

26. Monitoringof the nutritionalstatus of vulnerablegroups at nationallevel is normaly under the responsibilityof the Directoratefor Food and AppliedNutrition (DANA). This institutionhas conducted a limited number of localized food consumptionand nutrition surveys, thank-sto foreign support. However, DANAhas been unable to adjust its role in the contextof the restructuringprocess whichtook place in the Ministry of Rural Developmentand has remainedoperationally weak. DANA could play a relevant role in the coordinationand monitoringof nutrition activities, particularly if related to the preventiveaspects of malnutrition.The projectwould assistDANA redefine its role and prepare an action plan. This would be made by taking into account the diversity of actors intervening in monitoring nutritionactivities (Ministry of Health, Ministryof Social Affairs through Cathwel, various NGOs). - 93 - ANN1EX7 Page 7 of 7

Key Monitorina Zndicatozs

Yeas 1 2 |3 4 IS

Micro-roiects _ Nbr. ContratsNMOs 1S 30 40 S0 50

Income generating nbr I/ IS0 220 260 300 300

Socio-economic - storage nbr 40 S0 60 60 60 - land developmentZiha 10 IS 20 20 20 - land development nbr 40 60 80 80 80

Micro-infrastructure - rwal roads kms 25 40 60 60 60 - wells/smallbridges nbr 20 20 20 20 20 -constructions nbr 3 6 10 10 10

Nbr. directbenefic. - Income generating 10.000 15.000 18.000 21.000 21.000 - Socio-economic 6.500 8.000 11.500 11.500 11.500 Nbr.direct & indirectbenef. 3/ 30.000 60.000 70.000 70.000 70.000

Nbr. CNW 50 100 200 300 400 Nbr childrenin growthsurveilce 5,000 10,000 20,000 30,000 40,000 Nbr preventedcases of malnutrition 2,181 4,363 8,725 13,088 17,450 by supplem.feeding, rehab. centers & surveillance Prevalenceof malnutrition(with 29% 27% 25% 23% 21% project) I Overall reductionof malnutrition 4% 9% 17% 24% 31% Womenin lactating/pregancy 2,500 5,000 10,000 15,000 20,000 follow-up I _I

/Ife number of micropojects corespond to the number of beneficiaries'groups. Eah NGO's intervnion may compriseseveral micro-project for differentgroups.

Z/vegetablegardens, smal irigation,p-:icultr, bottom-landdevelopmut

3/ includingmicro-iastructures Benin Community Based Food Security Project Project Cost 8ummary

(CFAF Million) (US$ Million) % % Total I t Total Foreign Base Foreign Base Local Foreign Total Exchange Costs Local Foreign Total Exchange Costs

A. Micro-Projects 2,332.8 2,621.7 4,954.5 53 62 4.5 4.8 9.3 52 63 B. Community Nutrition 434.1 755.5 1,189.6 64 15 0.8 1.3 2.1 64 14 C. Inst.8ldg./Monit./Mgmt. Sec.Pol/Plng/Monit. 126.9 103.9 230.8 45 3 0.2 0.2 0.4 45 3 Project Management 804.4 773.7 1,578.1 49 20 1.6 1.5 3.0 48 21 Subtotal Inst.aldg./Monit./Mgmt. 931.3 877.6 1,808.9 49 23 1.8 1.6 3.4 48 23 Total BABILNlE COSTS 3,698.2 4,254.7 7,953.0 53 100 7.0 7.8 14.8 53 100 Physical Contingencies 175.8 317.5 493.3 64 6 0.3 0.6 0.9 64 6 Price Contingencies 1,631.5 312.1 1,943.6 16 24 2.8 0.5 3.4 16 23 ' Total PROJECT COSTS 5,505.5 4,884.3 10,389.9 47 131 10.2 8.9 19.1 47 129

Mon Feb 07 17:22:27 1994

oII Benin Community Based Food Security Project Project Components by Year

Totals Including Contingencies Totals Including Contingencies (CFAF Million) (US$ Million) 1995 1996 1997 1998 1999 Total 1995 1996 1997 1998 1999 Total

A. Micro-Projects 1,168.6 1,122.2 1,366.3 1,430.7 1,369.1 6,456.8 2.7 2.0 2.4 2.5 2.4 11.9 B. Community Nutrition 154.6 233.7 331.9 452.6 401.2 1,574.0 0.3 0.4 0.6 0.8 0.7 2.7 C. Inst.Bldg./Monit./Mgmt. Sec.Pol/Plng/Monit. 155.5 24.4 72.6 21.0 32.8 306.3 0.3 0.0 0.1 0.0 0.1 0.5 Project Management 673.1 341.3 327.5 426.2 204.7 2,052.7 1.5 0.6 0.6 0.7 0.5 3.9 Subtotal Inst.Bldg./Monit./Mgmt. 828.6 365.7 400.1 447.2 317.5 2,359.1 1.7 0.6 0.7 0.8 0.6 4.4 Total PROJECT COSTS 2,151.8 1,721.6 2,098.3 2,330.5 2,087.7 10,389.9 4.7 3.0 3.6 4.1 3.6 19.1

Mon Feb 07 17:26:04 1994 0

l~~~~~~~~~~~~~~~~~~~~o

,,~~~~~~~~~~~~~~~~~~~~~ Benin Community Based Food Security Project Expenditure Accounts by Components - Totals Including Contingencies (US$ Million)

Inst.Bldg./Monit./Mgmt. Community Project Micro-Projects Nutrition Sec.Pol/Plng/Monit. Management Total

S. Investment Costs A. Civil Works 2.2 - - 0.1 2.3 B. Vehicles/Equipment 0.8 1.2 0.1 0.5 2.7 C. rield Operatlons Micro-projects 4.9 - - - 4.9 Nutrition - 1.0 - - _ 1.0 Subtotal Field Operations 4.9 1.0 - - 5.9 D. Consultant/Training/Studies 0.2 0.4 0.4 1.0 2.1 E. N*GO Services (Staff) 1.9 - - 1.9 F. Food 0.6 0.1 - 0.7 G. PPF & DANIDA Grant 1.4 - - 0.6 1.9 Total Investment Costs 11.9 2.7 0.5 2.2 17.4 II. Recurrent Costs A. Management and Monitoring - - - 1.7 1.7 Total Recurrent Costs - - - 1.7 1.7 Total PROJECT COSTS 11.9 2.7 0.5 3.9 19.1

Taxes _ _ _ Foreign Exchange 5.5 1.6 0.2 1.7 8.9

Mon Feb 07 17:22:30 1994

413 Benin Community Based Food Security Project Expenditure Accounts by Years

Totals Including Contingencies Totals Including Contingencies (CFAF Million) (US$ Million) 1995 1996 1997 1998 1999 Total 1995 1996 1997 1998 1999 Total

I. Investment Costs A. Civil Works 163.6 243.9 297.5 306.2 315.2 1,326.4 0.3 0.4 0.5 0.5 0.5 2.3 B. Vehicles/Equipment 400.3 220.1 257.9 431.1 214.4 1,523.8 0.7 0.4 0.4 0.7 0.4 2.7 C. Field Operations Micro-projects 282.5 489.5 676.9 690.6 683.2 2,822.8 0.5 0.9 1.2 1.2 1.2 4.9 Nutrition 42.8 76.5 126.4 161.7 153.9 561.4 0.1 0.1 0.2 0.3 0.3 1.0 Subtotal Field Operations 325.4 566.0 803.3 852.3 837.1 3,384.2 0.6 1.0 1.4 1.5 1.5 5.9 D. Consultant/Training/Studies 314.1 233.8 249.9 212.8 175.9 1,186.4 0.5 0.4 0.4 0.4 0.3 2.1 E. NGO Services (Staff) 176.6 207.8 213.9 232.0 238.7 1,068.9 0.3 0.4 0.4 0.4 0.4 1.9 F. Food 63.8 61.8 80.5 89.7 99.4 395.2 0.1 0.1 0.1 0.2 J.2 0.7 G. PPF & DANIDA Grant 528.0 - - - - 528.0 1.9 - - - - 1.9 Total Investment Costs 1,971.8 1,533.5 1,902.9 2,124.1 1,880.6 9,413.0 4.4 2.7 3.3 3.7 3.3 17.4 II. Recurrent Costs A. Management and Monitoring 180.0 188.2 195.3 206.4 207.1 976.9 0.3 0.3 0.3 0.4 0.4 1.7 Total Recurrent Costs 180.0 188.2 195.3 206.4 207.1 976.9 0.3 0.3 0.3 0.4 0.4 1.7 Total PROJECT COSTS 2,151.8 1,721.6 2,098.3 2,330.5 2,087.7 10,389.9 4.7 3.0 3.6 4.1 3.6 19.1

Mon Feb 07 17:26:07 1994 - 99 - ANNEX 9 Page 1 of 1

REPUBIIC OF BENIN COMMUNITY-. BASED FOOD SECURITY PROJECT

Proiect Implementation Schedule

1994 1995 1996 1997 1998 1999

Negotiations - Board presentation - Effectiveness _ Prep.Implement.Manual ---- Information campaign Project launching _ Establish decentr.units --- Staff recrutement __ nMU procurement Finalize existing micro- projects N-projects preparation ------N-projects appraisals ------Implement. m-projects ------Training ------Select nutrition NGOs --- Prepare community --- nutrit. progr. Organization communities ______Vmplementnutrit. progra ------Monitoring ------

Evaluation - - - - - _-- - -

Super isionmissions ______Mid-term review Audits _ * - * _ * _ * - * Completion review Completion Closing T - 101 -

ANNX 1 Page 1 cf I

RUPUDIC OF BENIN CONMUNIYT-DABEDFOOD SECURI!! PROJECT

Disbursement Schedule

IDA FY Disbursement and Cumulative semester semester Cumulative Disbursement ------aillion-ms$ - (SDR millioU)

FY95 1 1.7 1.7 1.2 2 0.4 2.1 1.5 1T96 1 0.6 2.7 1.9 2 0.7 3.4 2.5 1Y97 1 0.8 4.2 3.0 2 0.8 5.0 3.6 me98 1 1.0 6.0 4.3 2 1.0 7.0 5.1 F119 1 0.8 7.8 5.7 2 0.8 8.6 6.2 112000 1 0.6 9.2 6.7 2 0.5 9.7 7.1

gft:sThis schedule assumes that the Credit becomes effective in July 1994. The project preparation advance (US$950,000) will be repaid and the intial deposit (US$700,000) made during the first semester of M95. IDA calculated at SDR/TS$ - 1.38 - 103 - ANNEX I1 Page 1 of 1

REPUBLIC OF BENIN

COMMUNITY-BASED FOOD SECURITY PROJECT

Tentative Proiect Supervision Schedule

Y(ars Activities Skill requirements Staff weeks 1994 Task Manager 2 2nd semester Project Launching Procurement analyst 2 Workshop Food Sec./Nutr. spec. 2

1995

1st semester Supervision Task manager 2 Community dev. 2 Food Sec./Nutr. spec. 2

2nd semester Supervision Task Manager 2 Community dev. 2 l______Financial analyst 2 1996

1st semester Supervision Task Manager 2 Monitor. /Benef. asses. 2 Food Sec./Nutr. spec. 2

2nd semester Supervision Task Manager 2 Sociologist 2 Financial analyst 2 1997

1st semester Mid-Term Review Task manager 2 Community dev. 2 Food Sec./Nutr. spec. 2 Rural infrastruct. 2

2nd semester Supervision Task manager 1 Monitoring/Evaluat. 1 1998

1st semester Supervision Task manager 2 Financial analyst 2 Food Sec./Nutr. spec. 2

2nd semester Supervision Task manager 2 Community dev. 2 ______Agronomist 2 1999

lnd semester Supervision Task Manager 2 Food Sec./Nutr. spec. 2

2nd semester Completion review Task Manager 2 Financial analyst 2 Food Sec./Nutr. spec. 2 ______Community dev 2 r - .'I i I j j C. X--AIGERA , 2o r

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