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World Bank Document Document of The World Bank Public Disclosure Authorized FOR OFFICIAL USE ONLY Report No 37200-MG PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT INTHE AMOUNT OF SDR 20.2 MILLION Public Disclosure Authorized (US%30.0 MILLION EQUIVALENT) TO THE REPUBLIC OF MADAGASCAR FOR AN IRRIGATION AND WATERSHED MANAGEMENT PROJECT IN SUPPORT OF THE FIRST PHASE OF THE IRRIGATION AND WATERSHED Public Disclosure Authorized MANAGEMENT PROGRAM October 24,2006 Environmental, Rural and Socially Sustainable Development - AFTSl Country Department 1, Madagascar Africa Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective September 2006) Currency Unit = Ariary (MGA) 1 MGA = US$0,00047 SDR = US$1.48620 US$ = SDR0.67286 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS ASC Agricultural Service Center AFD Agence FranFaise de Dbeloppement (French Development Agency) APO Agricultural Professional Organization BV Bassin versant (Watershed) BV-PI Bassin versant - PdrimBtre iwigud (Watershed - Irrigation Scheme) CAS Country Assistance Strategy CDP Communal Development Plan csc Communal Support Centre DFB Directorate for Finance and Budget DGDR Direction Gdndrale de Ddveloppement Rural (General Directorate for Rural Development) DRDR Direction Rdgionale de Ddveloppement Rural (Regional Directorate for Rural Development) DSI Department of Information Systems DTA Decentralized Territorial Authorities FERHA Fonds d 'Entretien de Rdseam Hydro Agricoles (Irrigation Maintenance Fund) FMG Malagasy Franc (F)WUAs (Federation of) Water Users Associations GDP Gross Domestic Product GEF Global Environmental Facility GELOSE Gestion Locale Sdcuriske (Community Land Tenure Management) GoM Government of Madagascar IDA International Development Association MAEP Ministry of Agriculture, Animal Husbandry and Fisheries MDAT Ministry of Decentralization and Land Development MEEF Ministry of Environment, Water and Forest Resources MEM Minister of Energy and Mines NAP National Action Plan NSC National Steering Committee O&M Operation and Maintenance PC Performance Contract PLOF Local Land Occupation Plan PN/BV-PI Programme National Bassins Versants - PdrimBtres Irriguds (National Irrigation and Watershed Management Program) PMU Project Management Unit PRSF Poverty Reduction Strategy Framework PSRP Poverty Reduction Strategy Paper WD Research-Development RDFB Regional Directorate for Finance and Budget RDP Regional Development Plan RMC Regional Monitoring Committee RPMU Regional Project Management Unit SLM Sustainable Land Management TT Tranoben’ny Tantsaha - Chambers of Agriculture UNCCD United Nations Convention to Combat Desertification WB World Bank WUA Water Users Association WDP Watershed Development Plans WMP Watershed Master Plan Vice President: GobindNankani . Country Director: htva Reinikka Sector Manager: Richard ScobeyIFrank Byamugisha Task Team Leader: IJsbrand de Jong MADAGASCAR Irrigation and Watershed Management Project TABLE OF CONTENTS A . STRATEGIC CONTEXT AND RATIONALE .......................................................... -4 Country and Sector Issues .......................................................................................... -4 Rationale for Bank involvement. relation to Country Assistance Strategy and GEF eligibility ................................................................................................................... -7 Higher level objectives to which the project is contributing ......................................... 8 B. PROJECT DESCRIPTION......................................................................................... 9 Lending Instrument.................................................................................................... -9 Program Objectives and Phases................................................................................... 9 Project Development Objectives and Key Indicators................................................. 11 Project Components .................................................................................................. 12 Lessons Learned and Integrated into the Project Concept .......................................... 16 Alternatives considered and Reasons for Rejection ................................................... 17 C . IMPLEMENTATION............................................................................................... 17 Partnership Arrangements.. ....................................................................................... 17 Institutional and Operational Arrangements ............................................................. -18 Monitoring and Evaluation of Outcomes/Results ...................................................... 20 Sustainability and Replicability ................................................................................. 20 Critical risks and Possible Controversial Aspects ...................................................... 21 D. PROJECT BRIEF SUMMARY ................................................................................ 24 Economic and Financial analysis ............................................................................. -24 Technical ................................................................................................................. -25 Fiduciary .................................................................................................................. 26 Social analysis .......................................................................................................... 27 Environmental analysis ............................................................................................. 27 Safeguard Policies ................................................................................................... -28 Policy Exceptions and Readiness .............................................................................. 30 Annex 1: National. Sectoral and Program Context .............................................................. -31 Annex 2: Major Related Projects Financed by the Bank and / or Other Agencies .................40 Annex 3: Results Framework and Monitoring and Evaluation .............................................. 42 Annex 4: Detailed Project Description................................................................................. 48 Annex 5: Project Costs ......................................................................................................... 60 Annex 6: Institutional and Implementation Arrangements ................................................... 61 Annex 7: Financial Management and Disbursement Arrangements...................................... 74 Annex 8: Procurement Arrangements .................................................................................. 83 Annex 9: Economic and Financial Analysis ......................................................................... 88 Annex 10: Safeguard Policies Issues ................................................................................. 105 Annex 11 : Project Preparation and Supervision .................................................................. 112 Annex 12: Documents in the Project File........................................................................... 113 Annex 13: Statement of Loans and Credits ......................................................................... 114 Annex 14: Country at a Glance ........................................................................................... 116 Annex 15: Incremental Cost Analysis ................................................................................ 118 Annex 16: Technical Annex Land Degradation in Madagascar .......................................... 128 Annex 17: STAP Review and Response to Review ............................................................ 140 Annex 18: APL Triggers ................................................................................................... 153 Annex 19: Maps (IBRD 35115, IBRD 35116) ................................................................... 155 MADAGASCAR IRRIGATION AND WATERSHED MANAGEMENT PROJECT PROJECT APPRAISAL DOCUMENT AFRICA AFTSl Date: October 24,2006 Team Leader: IJsbrand Harko de Jong Country Director: Ritva Reinikka Sectors: Irrigation and drainage (50%); Agro- Sector ManagedDirector: Michel Wormser industry (30%); Crops (20%) Project ID: PO74086 Themes: Other rural development (P); Other trade Lending Instrument: Adaptable Program Loan and integration (S) Environmental screening category: Full Assessment Global Supplemental ID: PO88887 Team Leader: IJsbrand Harko de Jong Lending Instrument: Specific Investment Loan Sectors: Irrigation and drainage (50%); Agro- Focal Area: Land Degradation industry (30%); Crops (20%) Supplement Fully Blended?: No Themes: Rural markets (P); Other trade and integration (S) For Loans/Credits/Others: 1 Borrower: Government of Madagascar: Ministry of Economy, Finance and Budget 1 B.P. 61 Antananarivo 101, Madagascar Tel: 261 20 22 382 86 Fax: 261 20 22 34530 Responsible Agency: Ministry of Agriculture, Livestock and Fisheries B.P. 301, Anosy Antananarivo 10 1, Madagascar Tel: (261-20)-22-27227 Fax: (261-20)-2226561 infoamaep.gov.mg 1 FY 7 8 9 10 11 Annual 1.45 4.34 6.95 I 10.56 6.70 1 Cumulative 1.45 5.79 12.74 23.30 30.00 I FY 7 8 9 10 11
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