Document of The World Bank
FOR OFFICIAL USE ONLY
Public Disclosure Authorized Report No: 75474-SN
PROJECT APPRAISAL DOCUMENT
ON A
PROPOSED CREDIT
IN THE AMOUNT OF SDR26.5 MILLION
Public Disclosure Authorized (US$40 MILLION EQUIVALENT)
TO THE
REPUBLIC OF SENEGAL
FOR A
CASAMANCE DEVELOPMENT POLE PROJECT
AUGUST 29, 2013 Public Disclosure Authorized
Post Conflict & Social Development Practice Group (AFTCS) Country Department AFCF 1 Africa Region
This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Public Disclosure Authorized CURRENCY EQUIVALENTS
Exchange Rate Effective: July 31, 2013
Currency Unit = CFAF US$1 = CFAF 494 SDR 1 = US$1.51
FISCAL YEAR January 1 - December 31
ABBREVIATIONS AND ACRONYMS ANRAC National Agency for the Reconstruction of Casamance (Agence Nationalepour la Relance des Activits Economiques et Sociales en Casamance) ARD Regional Development Agency (Agence Rfgionale de Diveloppement) ARDK Kolda Regional Development Agency (Agence Rfgionale de Diveloppement Kolda) ARDS S6dhiou Regional Development Agency (Agence Rfgionale de Diveloppement Sidhiou) ARDZ Ziguinchor Regional Development Agency (Agence Rfgionale de Diveloppement Ziguinchor) CAS Country Assistance Strategy CDPP Casamance Development Pole Project CEA Cost Effectiveness Analysis CEI Cost Effectiveness Indicator CPAS Social Action Promotion Center (Centre de Promotion et d'Action Sociale) CPS Country Partnership Strategy CO Coordination Office CR Rural Community (Communaut Rurale) CQS Selection Based on the Consultants' Qualifications DAGE General Administration and Equipment Directorate (Directionde l'Administration Gndrale et de l'Equipement) DCS Directorate of School Construction (Directiondes ConstructionsScolaires) DDR Disarmament, Demobilization and Reintegration DEEC Directorate of Environment (Direction de l'Environnementet des Etablissements Classis) DRC Domestic Resource Cost ERR Economic Rate of Return ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework FA Financing Agreement FM Financial Management GIE Economic Interest Group (Groupement d7ntirt Economique) GoS Government of Senegal GPN General Procurement Notice IDA International Development Association IEPB Integrated Economic Platform of Bignona IFR Interim Financial Report ISRA Senegalese Institute for Agricultural Research (Institut Snigalaisde Recherches Agricoles)
11 KPI Key Project Indicator LDP Local Development Plan M&E Monitoring and Evaluation MDG Millennium Development Goal MP Micro-Project NCB National Competitive Bidding NGO Non-Governmental Organization NPV Net Present Value ORAF Operational Risk Assessment Framework PAD Project Appraisal Document PDO Project Development Objective PIM Project Implementation Manual PLDP Participatory Local Development Project PMP Pest Management Plan PPF Project Preparation Facility PPP Private Public Partnership PRSC Poverty Reduction Strategy Credit PRSP Poverty Reduction Strategy Paper PSC Project Steering Committee QCBS Quality and Cost-Based Selection RAP Resettlement Action Plan REI Request for Expressions of Interest RPF Resettlement Policy Framework SBD Standard Bidding Documents SME Small and Medium Enterprise SNDES National Strategy for Economic and Social Development (StratigieNationale de Diveloppement Economique et Social) SNTR National Rural Transport Strategy (StratigieNationale du TransportRural) SPF State and Peace-building Fund SSA Sub-Saharan Africa UNDB United Nations Development Business WAEMU West African Economic and Monetary Union
Regional Vice President: Makhtar Diop Country Director: Vera Songwe Sector Director: Jamal Saghir Sector Manager: Ian Bannon Task Team Leader: Demba Balde
111 SENEGAL CASAMANCE DEVELOPMENT POLE PROJECT
Table of Contents
I. STRATEGIC CONTEXT ...... 7 A. Country Context ...... 7 B. Sectoral and Institutional Context...... 9...... 9 C. Higher-Level Objectives to which the Project Contributes ...... 1...... 1
II. PROJECT DEVELOPMENT OBJECTIVES ...... 13 A. Project Development Objectives (PDOs) ...... 13 B. Project Beneficiaries ...... 13 C. PDO-Level Results Indicators ...... 13
III. PROJECT DESCRIPTION ...... 14 A. Project Components ...... 14 B. Targeting ...... 16 C. Project Financing ...... 18 D. Lessons Learned and Reflected in the Project Design...... 20
IV. IM PLEM ENTATION ...... 21 A. Institutional and Implementation Arrangements ...... 21 B. Partnership Arrangements...... 22 C. Results Monitoring and Evaluation ...... 23 D. Sustainability...... 23
V. KEY RISKS AND MITIGATION MEASURES...... 24 A. Risk Ratings Summary Table ...... 24 B. Overall Risk Rating Explanation ...... 24
VI. APPRAISAL SUMMARY ...... 25 A. Economic and Financial Analyses ...... 25 B. Technical ...... 27 C. Financial Management...... 29 D. Procurement ...... 30 E. Social (including Safeguards) ...... 30 F. Environment (including Safeguards) ...... 32
iv LIST OF ANNEXES
Annex 1: Results Framework and Monitoring...... 34 Annex 2: Detailed Project Description ...... 37 Annex 3: Implementation Arrangements ...... 53 Annex 4: Operational Risk Assessment Framework (ORAF) ...... 73 Annex 5: Implementation Support Plan...... 77 Annex 6: Economic and Financial Analysis of the Project ...... 80 Annex 7: Summary of the implementation of critical safeguard measures ...... 84
LIST OF TABLES Table 1: Beneficiaries and Targeting Criteria...... 17 Table 2: Project Costs Including Contingencies ...... 19 Table 3: Risk Ratings Summary ...... 24 Table 4: Economic and Financial Analysis of Rice Production ...... 25 Table 5: Economic and Financial Analysis of Horticulture Production ...... 26 Table 6: Return on Investments of the Bignona Platform...... 26 Table 7: Economic Analysis of Periodic Maintenance/Rehabilitation of Rural Roads...... 27 Table 8: Safeguards Policies Triggered ...... 33 Table 9: Projected Yields, Crop Areas and Production in Upland Rice...... 39 Table 10: Projected Crop Areas of Selected Horticulture Products in Casamance (ha)...... 40 Table 11: Rehabilitation/Periodic Maintenance Program...... 50 Table 12: Categories of Eligible Expenditures...... 58 Table 13: Summary of Auditing Requirements ...... 59 Table 14: Financial Management Action Plan...... 59 Table 15: Procurement subject to prior-review by IDA, as considered in Appendix 1 of the Procurement Guidelines...... 65 Table 16: Goods and non-consulting services ...... 66 Table 17: Selection and employment of consultants, subject to prior-review by the Bank as considered in Appendix 1 of the Procurement Guidelines for the Selection and Employment of Consultants...... 68 Table 18: Consulting services ...... 69 Table 19: Estimated Supervision Budget (Core Task Team) ...... 79 Table 20: Economic and Financial Evaluation of Agricultural Value Chains and Platform...... 82
v Table 21: Economic and Financial Evaluation of the Aggregate Rice Value Chain and Platform...... 82
LIST OF FIGURES
Figure 1: Poverty Levels by Region ...... 88...... Figure 2: Business relations (delivery of agriculture product) ...... 45 Figure 3: Organization Chart of the Platform...... 47 Figure 4: Percentage of Population with Access to a Lateritic Road by Region ...... 49 Figure 5: Organization Chart ...... 55 Figure 6: Funds Flow Arrangements ...... 57 Figure 7: MAP of Senegal ...... 85
vi PAD DATA SHEET Senegal SN.Casamance Development Pole Project (P125506) PROJECT APPRAISAL DOCUMENT
AFRICA AFTCS
Report No.: PAD510
Basic Information Project ID Lending Instrument EA Category Team Leader P125506 Investment Project B - Partial Assessment Demba Balde Financing Project Implementation Start Date Project Implementation End Date 26-Sep-2013 31-Dec-2018 Expected Effectiveness Date Expected Closing Date 10-Jan-2014 30-Jun-2019 Joint IFC No Sector Manager Sector Director Country Director Regional Vice President Ian Bannon Jamal Saghir Vera Songwe Makhtar Diop
Borrower: Ministry of Economy and Finance Responsible Agency: Project Steering Committee Contact: Sekou Sambou Title: President of the Steering Committee Telephone 221338808080 Email: No.: Responsible Agency: Regional Development Agency - Ziguinchor Contact: Boubacar Sonko Title: Director Telephone 221777250045 Email: No.: Responsible Agency: Regional Development Agency - Sedhiou Contact: Nfally Badji Title: Director Telephone 221776451951 Email: No.: Responsible Agency: Regional Development Agency - Kolda Contact: Abdoul Anne Title: Director Telephone 221775152951 Email: No.:
Project Financing Data(in USD Million) [ ] Loan [ ] Grant [ ] Other [X] Credit [ ] Guarantee Total Project Cost: 46.00 Total Bank Financing: 40.00 Total Cofinancing: Financing Gap: 0.00
Financing Source Amount BORROWER/RECIPIENT 6.00 International Development Association (IDA) 40.00 Total 46.00
Expected Disbursements (in USD Million) Fiscal Year 2014 2015 2016 2017 2018 2019 Annual 1.00 3.00 10.00 12.00 10.00 4.00 Cumulative 1.00 4.00 14.00 26.00 36.00 40.00
Proposed Development Objective(s) The Project Development Objectives (PDOs) are to: (i) enhance the agricultural productivity of youth and female farmers for selected crops; and (ii) improve transport linkages in isolated rural communities in targeted areas of the Casamance region.
Components Component Name Cost (USD Millions) Support to agricultural production, Post-harvest, and 24.00 marketing for selected value-chains Rural Accessibility 15.00 Project implementation and capacity building in DDR 7.00
Institutional Data Sector Board Social Development
Sectors / Climate Change Sector (Maximum 5 and total % must equal 100) Major Sector Sector % Adaptation Mitigation Co-benefits % Co-benefits % Agriculture, fishing, and forestry General agriculture, 55 fishing and forestry sector
11 Industry and trade Agro-industry, 12 marketing, and trade Transportation Rural and Inter-Urban 33 Roads and Highways Total 100 Z I certify that there is no Adaptation and Mitigation Climate Change Co-benefits information applicable to this project.
Themes Theme (Maximum 5 and total % must equal 100) Major theme Theme % Rural development Rural services and infrastructure 30 Social dev/gender/inclusion Conflict prevention and post-conflict 50 reconstruction Financial and private sector development Infrastructure services for private sector 20 development Total 100
Compliance Policy Does the project depart from the CAS in content or in other significant Yes [ ] No [ X] respects?
Does the project require any waivers of Bank policies? Yes [ ] No [ X] Have these been approved by Bank management? Yes [ ] No [ ] Is approval for any policy waiver sought from the Board? Yes [ ] No [X] Does the project meet the Regional criteria for readiness for implementation? Yes [X] No [ ]
Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 X Natural Habitats OP/BP 4.04 X Forests OP/BP 4.36 X Pest Management OP 4.09 X Physical Cultural Resources OP/BP 4.11 X Indigenous Peoples OP/BP 4.10 X Involuntary Resettlement OP/BP 4.12 X Safety of Dams OP/BP 4.37 X Projects on International Waterways OP/BP 7.50 X
111 Projects in Disputed Areas OP/BP 7.60 X
Legal Covenants Name Recurrent Due Date Frequency Effectiveness condition 10-Jan-2014 Description of Covenant Each of the Subsidiary Agreements has been executed on behalf of the Recipient and each of the Project Implementing Entities. Name Recurrent Due Date Frequency Effectiveness condition 10-Jan-2014 Description of Covenant The Recipient has adopted the Project Implementation Manual in accordance with the provisions of Section I.B.1(a) of Schedule 2 of the Financing Agreement. Name Recurrent Due Date Frequency Effectiveness condition 10-Jan-2014 Description of Covenant The Recipient has recruited a coordinator for the Coordination Office, in accordance with the provisions of Section I.A.1(b) of Schedule 2 of the Financing Agreement. Name Recurrent Due Date Frequency Dated covenant 26-Apr-2014 Description of Covenant The Recipient has caused each of the Project Implementing Entities to set up an operational financial management and accounting system, in form and substance acceptable to the Association. Name Recurrent Due Date Frequency Dated covenant 26-Apr-2014 Description of Covenant Recruitment of an internal Auditor on a part-time basis Name Recurrent Due Date Frequency Dated covenant 26-Apr-2014 Description of Covenant Selection of the external auditor of the project Name Recurrent Due Date Frequency Dated covenant 10-Jul-2014 Description of Covenant The AGEROUTE agreement has been executed and delivered on behalf of the Recipient and AGEROUTE
1v Team Composition Bank Staff Name Title Specialization Unit Wolfgang M. T. Chadab Senior Finance Officer Senior Finance Officer CTRLA Mademba Ndiaye Senior Communications Senior Communications AFRSC Officer Officer Salamata Bal Senior Social Social Safeguards AFTCS Development Specialist Demba Balde Senior Social Team Lead AFTCS Development Specialist Joseph-Antoine Ellong Senior Program Senior Program AFTCS Assistant Assistant Cheick Traore Senior Procurement Senior Procurement AFTPW Specialist Specialist Demetrios Sector Leader Senior Infrastructure AFTSN Papathanasiou Specialist Cheikh A. T. Sagna Senior Social Senior Social AFTCS Development Specialist Development Specialist Maman-Sani Issa Senior Environmental Environmental AFTN2 Specialist Safeguards Siobhan McInerney- Senior Counsel Senior Counsel LEGAM Lankford Manievel Sene Senior Rural Co-TTL AFTA2 Development Specialist Djibril Ndoye Economist, Poverty Statistician AFTP4 Maya Abi Karam Counsel Counsel LEGAM Daniela Anna B. D. Senior Counsel Senior Counsel LEGAM Junqueira Papa Mamadou Fall Transport Specialist Co-TTL AFTTR Ngor Sene Financial Management Consultant AFTMW Specialist Aifa Fatimata Ndoye Agric. Economist Agric. Economist AFTA1 Niane Marie Agnes Ndour Team Assistant Team Assistant AFCF1 Huchard Non Bank Staff Name Title Office Phone City Leopold Sarr Agronomist Dakar
V Locations Country First Location Planned Actual Comments Administrative Division Senegal Ziguinchor Ziguinchor X Senegal Kolda Kolda X Senegal S6dhiou R6gion de S6dhiou X
Vi I. STRATEGIC CONTEXT
A. Country Context
1. Senegal has undergone a successful democratic transition following national elections in March 25, 2012. The new Government attaches high priority to resolving the long-standing conflict in Casamance. It has renewed efforts to reach a negotiated peace agreement with rebel groups, but even in the absence of a formal agreement the Government believes that the key to sustained peace in Casamance lies in broad-based development in the region and greater linkages, especially economic, with the rest of the country. Casamance's sustainable development will require improved public infrastructure, a greater role for the private sector, and above all enhanced livelihood opportunities and higher productivity for the region's mainly rural population. The Government's strategy to secure peace in Casamance is also in line with its broad approach to meeting the country's development challenge from a spatial perspective based on the comparative advantage and development potential of regional growth poles. In the case of Casamance, the goals of developing regional growth poles and achieving sustainable peace reinforce each other.
2. The economy, however, faces considerable challenges due to domestic and external shocks. In the decade since 1995, Senegal enjoyed robust per capita GDP growth, but starting in 2006, the economy was buffeted by a series of domestic and external shocks. Unfavorable rains prompted a sharp decline in agricultural output during 2006-07. The international food and oil price shocks over 2007-08 slowed the economy, increased inflation, and resulted in a significant deterioration of Senegal's external and fiscal positions. Weaknesses in fiscal policy and public financial management were compounded by the fiscal costs of ineffective and untargeted subsidies for electricity and food. The onset of the global financial crisis in 2008 and its deepening in 2009, together with continued electricity shortages, further contributed to the general slowdown of the country's economic activity. A modest recovery occurred in 2010, with economic growth accelerating to 4.1 percent. However, real annual GDP growth averaged only 3.4 percent in 2006-10, down from an average of 4.4 percent in 2000-05. 3. In 2011, real GDP growth slowed again to 2.6 percent, due to continued energy shortages and a large contraction in agricultural output. Agriculture declined drastically in the fourth quarter when more than half of annual production is harvested, leading to a fall in output of 21 percent. The rains were insufficient and erratic, but there also were problems in input supply. Production of groundnuts declined by 59 percent and cereals by 36 percent. In contrast, nonagricultural activities continued their momentum and grew by 5.0 percent. Electricity supply improved in the last semester, due in large measure to implementation of the Government's emergency plan, which helped a recovery in manufacturing. Dynamism in the telecommunication, transport, and financial sectors contributed to the good performance of the tertiary sector. On the demand side, public spending, private consumption, and exports were the main drivers of economic growth in 2011. Inflation rose in early 2011 reflecting increasing international food and petroleum prices, but this trend reversed in the second half, yielding an annual average inflation rate of 3.4 percent.
7 4. Poverty and extreme poverty have a spatial and geographic dimension in Senegal. According to the 2011 household survey, the incidence of poverty in the country is at 46.7 percent of the population. Two thirds of the poor live in rural areas. The three regions that constitute Casamance (Ziguinchor, Kolda, and S6dhiou) are among the poorest in the country (Figure 1), with poverty levels considerably higher than the national average. While the poverty level in Dakar is 22.5 percent, in Ziguinchor, S6dhiou, and Kolda it is respectively 64.9 percent, 69.1 and 75.2 percent. In Kolda, poverty increased from 60.9 percent in 2005 to 75.2 percent in 2011. In addition, extreme poverty remains widespread in the rural areas of Casamance, especially in the departments of Medina, Yoro Foulah, Kolda, V61ingara, Ziguinchor, and Bounkiling with respective rates of 56.5 percent, 51.7 percent, 48.7 percent, 42.6 percent and 40 percent. In the departments of S6dhiou, Goudomp and Bignona, one third of the population is extremely poor.
Figure 1: Poverty Levels by Region
Dakar ThiOs Saint-Louis Louga Oiourbel National Matam Kaffrine Kaolack Tambacounda Ziguinchor Fatick S6dhiou K6dougou Kolda
0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 Source: ESPS-1l, 2011
5. Economic activity in Senegal is largely concentrated in the capital Dakar. Dakar metropolitan area is home to a quarter of Senegal's population and contains the bulk of the country's industries. The concentration of economic activity in the capital area leads to severe rural-urban imbalances in economic opportunities. Rural areas and peripheral regions need to contribute to broader-based growth but also benefit from growth in urban areas through better access to markets and connections to emerging growth poles (the Northern river delta, the groundnut basin, the eastern mineral zone, the coastal area, and the Casamance region). To ensure more balanced and inclusive growth, the Government is emphasizing a growth pole strategy which includes an integrated approach (across sectors and space) focused on the
8 delivery of basic services in areas with demonstrated growth potential through spatially targeted interventions and private-public investments in strategic locations.
6. The Government of Senegal (GoS) plans to pilot the third phase of the country's decentralization framework' in the Casamance region, based on a growth pole strategy. The framework will build an investment prioritization process to support the selection of individual projects or investment packages with the highest economic returns among a set of pre-identified options. The resulting ranked projects will inform public investment decisions so that government can better use limited public resources to leverage transformational investments via direct investments, partnerships with the private sector, or allocation of donor resources. This strategy, to be generalized once tested in Casamance, will set in place a new framework to support growth pole areas, emphasizing the importance of basic infrastructure investments to stimulate economic diversification in the country and a competitive structure for the regions.
B. Sectoral and Institutional Context
7. Agriculture occupies 70 percent of Senegal's population, but the sector faces many constraints including, but not limited to, its strong dependency on rain-fed agriculture (irrigation is less than 5 percent of potential), access to land, limited access of producers to credit and agricultural inputs, limited post-harvest infrastructure and equipment, and wide variations in agricultural product prices. As a result, Senegal's agricultural output is growing slowly and the country faced a serious food crisis in 2011.
8. Casamance comprises three administrative regions (Ziguinchor, Sidhiou, and Kolda), with a combined area of approximately 28,400 square kilometers and a population of 1.5 million. Casamance presents some particularities compared to the rest of Senegal: it has higher rainfall, its landscapes, including rain forests, and beaches are a major tourist attraction, and it is culturally more linked to Guinea-Bissau and The Gambia than the north of Senegal. Although, like in the rest of the country, Islam is the dominant religion in Casamance, significant parts of the population practice Christianity and/or traditional beliefs.
9. For the past 30 years the Casamance region has experienced Africa's longest lived low-intensity conflict, which has caused hundreds of deaths and injuries. It is estimated that between 30,000 to 60,000 people have been displaced into major cities (Dakar, Ziguinchor, Bignona, S6dhiou, Kolda) or are refugees in neighboring countries (Guinea-Bissau and The Gambia) making them vulnerable to pressures from competing rebel factions, host communities, and cross-border arms and drugs trafficking networks. Fighting between the Army of Senegal and rebels of the Movement of Democratic Forces for Casamance has adversely affected the potential of the region to contribute fully to the economy of Senegal. It is estimated that the conflict has cut agricultural production by 50 percent. The tourism industry has been devastated by the conflict with many of its 16,000 employees being dismissed as a result of continuing
1 The GoS is currently conducting a participatory consultation process involving local stakeholders and authorities nationwide in view of defining the new decentralization framework, referred to as "Acte 3 de la Decentralisation".
9 insecurity. More generally, livelihoods have suffered as insecurity has stifled traditional and commercial agriculture, trade and tourism.
10. The crisis has prevented the region from fulfilling its considerable economic potential, especially in terms of agriculture and tourism. Although the development of the agricultural sector has suffered due to the conflict, the Casamance region is still number one in the production of mangoes, citrus fruits, and cashew nuts. It is number two in rice production. Security has been identified as the main issue holding back the economic development of the region because of mine infestations on agricultural lands, and attacks and robberies on civilians, particularly travelers and small business owners. Peace and development will not be possible in Casamance unless the economic and social sources of the conflict are addressed. In addition, the Casamance conflict has the potential to undermine stability across the region (The Gambia, Guinea-Bissau and Guinea-Conakry).
11. Casamance's primary products face many constraints including poor marketing and logistics systems. Although the region generates an agricultural surplus and the demand for its products is strong outside the region, trade is limited by the poor quality of logistics systems and limited access by local producers. These constraints on trade limit the ability of local producers to increase and diversify agricultural production. The region is, however, ideally located to benefit from trade with neighboring countries and has some of the largest traditional markets in Senegal (Diaob6), though it is geographically isolated from the rest of the country.
12. Casamance has an excellent opportunity to develop its agriculture sector by focusing on processing activities, diversifying into new cash crops and horticulture, and improving the quality of agriculture activities through modernization. The project aims to increase output, but also to enhance consumption at the local level and ultimately to establish a sustainable and more diversified market-driven production system. The promotion of marketing and processing of agricultural products in Casamance via multi-sector market platforms will complement the horticulture production activities by adding value. These value-chain approaches aim at improving the distribution system at the local, regional, national, and sub-regional levels of Origine Casamanceproducts by promoting innovative physical (boutiques) and virtual (e-trade) distribution channels and optimizing the revenues of Casamance women's groups operators.
13. Agriculture has untapped potential in Casamance with fertile soils, abundant water resources and favorable climate. The main crops include rice, millet, sorghum, corn, and fonio. Casamance is the second rice production zone of the country and provides 27 percent of the national rice output with 62 percent of the cropped area. Comparatively, the Senegal River Valley, in particular the region of Saint-Louis provides 70 percent of the national output with 35 percent of the cropped area. Thus, there is considerable potential to improve the productivity of rice in Casamance. The production of fruits is mainly mangoes, cashew nuts, citrus, bananas and wild fruits (madd, bouye ditakh). Senegal produces about 120,000 tons of fruits per year, including 61 percent of mangoes. Casamance accounts for 47 percent of national mango production and 90 percent of cashew nuts.
14. The region of Ziguinchor in particular has great potential in fisheries and aquaculture. It has a coastline of 85 kilometers and an important hydrographic network composed of a 300 kilometer axial river connected to numerous watercourses. Ziguinchor is
10 number four in terms of production of fish products with 6.5 percent of national output. The artisanal processing of fish products is an important activity, including salting, drying, smoking, cooking or fermentation. It employs a female labor force skilled in artisanal processing techniques. The range of products found include baked sardinella, dried, smoked and fermented fish, shrimps, and dried oysters. The production is about 5,000 tons destined to the national market (33 percent) and the sub-regional market (The Gambia, Guinea-Conakry, Ghana, Burkina Faso, and Mali). The industrial processing is done by small scale processing units (IKAGEL, Complexe Frigorifique,and SOFRIKAF), but production has been falling due to lower catches, particularly shrimp.
15. Casamance's Social and economic infrastructure lag is particularly acute in rural areas where it is a key determinant ofpoverty: * Limited access to infrastructure increases the vulnerability of the ruralpoor in Casamance. In the poorest areas of rural Casamance most communities lack access to an all-season road, 82 percent of households still lack access to electricity, and only 43 percent have access to a public health center. * Poor rural infrastructurelimits access to markets. Due to the poor network of rural/feeder roads, large parts of rural areas in Casamance are not adequately linked to markets, which prevent producers from fully exploiting new opportunities offered by increased urban demand and export possibilities.
16. In Casamance, like in most rural Sub-Saharan Africa (SSA), a major part of transport for social and economic activities is undertaken by women. The time and effort women devote to transport has a high opportunity cost relative to other productive activities. Women in rural communities transport a substantial portion of household products to markets and collection points; purchase and transport household goods, food, and production inputs; gather and transport firewood; collect and transport water; and transport their children to schools and health facilities (World Bank, 1989).
C. Higher-Level Objectives to which the Project Contributes
17. The higher level objective of this project is to help reduce the vulnerability of youth and women in Casamance by broadening their income-generating opportunities in order to address the core drivers of the Casamance conflict. The proposed operation is a commercial agriculture and value chain project focusing on: (i) Key agriculture products (rice, horticulture) which have considerable potential to raise incomes and diversify the rural economy of Casamance; and (ii) The development of economic platforms and rural roads to facilitate the links between production basins and small producers (especially youth and women) and markets.
11 18. The evidence presented in a recent World Bank publication indicates that the core of value chain development involves strengthening relationships, which are critical in fragile and post conflict environments where trust and social cohesion have been shattered.2 In addition to diversifying economies and livelihoods, as they are rebuilt, relationships and networks can provide small and medium actors in a value chain a basis for collective action and reduce the sense of economic and social exclusion which characterize most fragile and post-conflict settings such as Casamance.
19. As such, the proposed project aims to support peace in Casamance by promoting commercial agriculture and value chains. The approach builds on the GoS strategy of spatial development through growth poles, taking into account Casamance's considerable economic potential, its history of conflict and marginalization, and the need to focus especially on vulnerable youth and women. While Casamance has the potential to contribute significantly both to national growth and food security in the country, it also has special needs derived from its history of conflict and socio-economic marginalization, especially in terms of providing access to markets and services, and building the resilience of vulnerable groups, particularly women and youth. Although a focus on the long-term sustainable development of Casamance cannot guarantee peace, without addressing its social and economic drivers of conflict and fragility, it is difficult to foresee how peace could be secured and sustained.
20. The proposed project is aligned with the two pillars of the 2011 Africa Regional Strategy, competitiveness and employment, and vulnerability and resilience (conflict, political violence), and will be implemented on the basis of leveraging partnerships with other donors, civil society, and local governments. The project supports the new Country Partnership Strategy (CPS) which is focusing on improving governance and building resilience at its foundation with two pillars. The first pillar focuses on accelerating growth and employment and creating fiscal space, and the second on improving service delivery. The CPS is based on GoS priorities as articulated in the Government's Strategie Nationale de Developpement Economique et Sociale (SNDES). Specifically, the project will support GoS to improve economic development prospects in Casamance through the promotion of commercial agriculture and value chain.
21. The conflict drivers and their impact in Casamance are mostly economic. According to the 2011 WDR, poverty, unemployment, injustice and inequality are viewed as key conflict drivers across the world. The lack of job opportunities for youths, economic neglect and marginalization of the region, and the issue of land tenure are identified as drivers of the Casamance conflict. The main determinants of the Casamance crisis include: (i) a sense of territorial exclusion related to geographical isolation which an inadequate transport system cannot effectively mitigate; (ii) a sense of social and economic exclusion related to the policy of territorial development of the country, perceived as unbalanced between the capital and marginalized peripheral and border regions; and (iii) underinvestment in Casamance that contributes to its economic weakness and fragility.
2 Nora Dudwick and Radhika Srinivasan. 2013. Creating Jobs in Africa's Fragile States. Directions in Development. World Bank, Washington, DC.
12 II. PROJECT DEVELOPMENT OBJECTIVES
A. Project Development Objectives (PDOs)
22. The Project Development Objectives (PDOs) are to: (i) enhance the agricultural productivity of youth and female farmers for selected crops; and (ii) improve transport linkages in isolated rural communities in targeted areas of the Casamance region.
B. Project Beneficiaries
23. Development of the private sector in Casamance is severely constrained by the conflict context under which businesses are reluctant to invest in the region due to perceived security risks. Nevertheless, the private sector is still present in the agriculture sector in the form of cooperatives, small suppliers of agricultural inputs and traders, Economic Interest Groups (GIE), microfinance institutions, and small and medium enterprises (SMEs). The proposed project targets local private sector development in Casamance. Beneficiaries include the key value-chain stakeholders: small holders, private operators (including brokers, transporters, and processors), cooperatives, women's associations, and youth groups. In addition, the rural accessibility component is expected to contribute to the fight against rural poverty in Casamance by improving access of rural households and entrepreneurs to income generating opportunities, social services and markets.
C. PDO-Level Results Indicators
24. Progress toward achieving the PDOs will be monitored through the following outcome indicators: (i) average increase in rain-fed rice yield (tons per hectare); (ii) average revenue per hectare of horticulture (US$); (iii) tons of local products passing through the Bignona platform per year; (iv) share of rural population in the project area with access to an all-season road (percent); and (v) direct project beneficiaries (number) of which female (percentage) and youth (percentage).
25. The proposed intermediate output indicators include: (i) enterprises created/developed at the Bignona platform (number); (ii) targeted clients satisfied with agricultural and rural advisory services (percentage); (iii) people in the project area aware of the project's beneficiary targeting criteria (percentage); (iv) rice valleys rehabilitated/developed (hectares); (v) women and youth groups provided with equipment and input packages for rice production (number), for horticulture (number) and Oyster farms (number); (vi) area provided with irrigation services for horticulture (hectares); (vii) the platform of Bignona is constructed and functional (Yes/No); (viii) agricultural storage facilities rehabilitated/constructed (number); (ix) rural roads rehabilitated (kilometers); (x) staff trained in Disarmament, Demobilization and Reintegration (DDR) (number); and (xi) a study on national development pole strategy is completed (Yes/No).
13 III. PROJECT DESCRIPTION
26. First, the project is conceived as a transformative operation to support the Government's commitment to develop the economic potential of Casamance and thereby improve prospects for long-term peace in the region. As a Development Pole operation, the project focuses on clustering critical investments to support development of the agriculture sector, in line with Senegal's Accelerated Growth Strategy. Also the cross-sectoral (agriculture, transport, local development and conflict) project seeks to develop the economic potential of the region by focusing on the constraints faced by small-scale farmers-especially the limited availability of marketing, processing and storage facilities, and the poor quality of rural roads- to allow them to participate and benefit from agriculture supply value chains. Finally, as peace is critical to the success of Casamance as a Development Pole, the project will be complemented by a two-year US$3.0 million State and Peace building Fund (SPF) grant, approved in June 2012, which will support peace building initiatives in Casamance via three mutually reinforcing components: (i) training to support community-based peace building; (ii) capacity building to prepare the 25 Rural Communities to engage their constituents in the selection and design of peace building initiatives; and (iii) catalytic investments to finance the implementation and supervision of the selected peace building initiatives.
A. Project Components
27. The project consists of the following three components that are further detailed in Annex 2
28. Component 1: Support to agricultural production, post-harvest, and marketing for selected value-chains (US$24.0 million, out of which IDA finances US$22.0 million). Carrying- out of a program aiming at increasing rice productivity and overall rice production among smallholders to improve food security, through four subcomponents focusing on key areas of production, post-harvest and marketing: (i) rehabilitation and development of selected rice valleys and horticulture perimeters, and provision of small scale post-harvest infrastructure (US$8.0 million); (ii) provision of assets to enhance the production of rice, horticulture and oysters, and to increase the productivity of the rice, horticulture oysters sub-sectors (US$7.0 million out of which IDA finances US$5.0 million); (iii) provision of small scale post-harvest infrastructure, including collection points for agricultural produce (US$2.0 million); and (iv) improvement of market access through the development and operation of the Integrated Economic Platform of Bignona (IEPB) (US$7.0 million).
29. The design of component 1 responds to the demand by Casamance agricultural cooperatives, and small-scale private operators for support to production, marketing, and commercialization of agricultural commodities. The component supports activities aimed at restoring the missing links in the rice, horticulture and oysters value-chains. Cooperatives and producers working on the three value chains are facing constraints related to low production and productivity, access to inputs and credit, difficulties in marketing, and severe losses due to limited post-harvest infrastructure (study conducted by the Regional Development Agency of Ziguinchor (ARDZ), October 2010).
14 30. The project will rehabilitate about 30,000 hectares of rice valleys to increase production from 80,000 tons per year to 260,000 tons at end of project, and rehabilitate and/or develop about 3,000 hectares4 of horticulture perimeters. For oyster culture, the project will promote on a pilot basis three oyster farms in Ziguinchor and one disgorging facility where oysters are drained and washed before they are marketed. The combined production potential of the proposed farms is estimated at 600 tons per year.
31. In order to link production to markets and provide added value to agricultural products, the project will support the creation of small logistic platforms in the production basins to benefit cooperatives. Small multi-sector platforms with adequate infrastructure and equipment will be built to develop the capacity for collecting, handling, processing, and transporting local produce. The support will consist of building, developing and equipping small logistic services platform and post-harvest infrastructure (storage, parking area for trucks, cold rooms, and small processing units. These small platforms will be managed by women's and youth groups. The project will encourage commercial links between cooperatives and women's groups working on production and/or post-harvest added value, and operators of the IEPB through contractual arrangements. The project will also provide productive assets in the form of grants to small-holders -members of cooperatives- in support of production and productivity in the selected value-chains.
32. The project will also support the development of the IEPB. The project aims to complete the development of the IEPB. The department of Bignona exports 50,000 tons of horticulture products (citrus fruits, mangoes, cashews, wild fruits, bananas, cassava, and sweet potatoes) to the rest of Senegal and the sub-region. It is estimated that at least 50 percent of this volume will be handled through the platform in its first year of operation. The concept of the IEPB is already being initiated by different partners including the Agricultural Markets Development Project, funded by the World Bank. This project will complete the development of the IEPB, link it to production and open up space for women and youth groups to participate and benefit from it. This is a critical initiative for Bignona as it has the right characteristics (production center and epicenter of the conflict).
33. Component 2: Rural Accessibility (US$15.0 million, out of which IDA finances US$13.0 million). Carrying-out of a program aiming at improving accessibility of the most isolated rural communities and improving said communities' access to roads leading to local markets and agricultural production zones, through: (i) improvement of the poorest rural communities (CRs) road access, through spot improvements on about 350 km of unclassified roads linking rural communities with districts and urban centers (US$3.5 million); (ii) rehabilitation and maintenance of about 200 km of selected rural roads to increase access to commercial infrastructure and zones with high agricultural potential (US$10.2 million, out of which IDA finances US$8.2 million); (iii) Implementation of a rural roads maintenance pilot project through labor intensive methods (US$500,000); and (iv) Strengthening of the capacity of the staff and contributors of the ARDs, and of rural communities in the area of general contracting and the maintenance of rural roads (US$800,000).
This will be in addition to the currently cultivated area of 50,000 hectares of rice valleys. 4 In addition to the 2,000 hectares currently cultivated.
15 34. Component 2 will be implemented in close collaboration with the Directorate of Roads which is responsible for the consistency and overall quality of all road infrastructure projects and programs in Senegal. The Directorate is also responsible for the coordination and implementation of the National Strategy for Rural Transport (SNTR), and as such, it will ensure the consistency of component 2 with the objectives of the SNTR.
35. Component 3: Project implementation and capacity building in DDR (US$7.0 million, out of which IDA finances US$5.0 million). This component includes four sub-components: (i) Strengthening the capacity of key stakeholders, including the Agence Nationalepour la Relance des Activites Economiques et Sociales en Casamance (ANRAC) through consolidation of peace building processes and the fundamentals of DDR for ex-combatants (US$600,000). In the event of an agreed formal DDR process, the project will look to other donors to support implementation. This activity will be implemented alongside the recently approved State and Peace-building Fund (PCF) grant which aims at supporting peace building initiatives of rural communities in Casamance; (ii) Carrying-out of three strategic studies on: (i) developing a cadastral plan; (ii) developing a geo-reference map of interventions in Casamance; and (iii) support to the government in the definition and implementation of a strategy on poles development, which integrates a fiscal framework. These studies will involve wide participatory consultations with stakeholders; (iii) Support to project management, results monitoring and evaluation (M&E), detailed in Section IV (US$3.8 million); and (iv) Construction of office facilities for the ARDs and provision of related office equipment (US$2.0 million, financed by the GoS).
36. Land is a sensitive issue in Casamance. Local communities have a long tradition of sedentary agriculture, mainly rice cultivation, which in Diola communities is centuries old. The best rice fields are those bordering the Casamance River and its tributaries but they have required considerable labor investments over many generations for the maintenance of dikes. The Casamanqaisin general and the Diolas in particular, are thus attached to their land more strongly than other ethnic groups in Senegal. In fact, many analysts of the Casamance conflict point to land tenure as an important trigger of the conflict, when the Government tried to control land allocation with the adoption of the 1964 National Land Act (Loi relative au Domaine National). Given the sensitivity of this issue, the project defines four criteria in selecting valleys for rice production and horticulture perimeters: (i) valleys free of potential and actual land conflicts as well as land mines; (ii) clearly defined access and land distribution of rice parcels at the community level or valley level; (iii) strong leadership of the Local Government (Conseil Rural) in planning activities; and (iv) existence of valid land occupation permits for the youth association or women's group managing the horticulture perimeter.
B. Targeting
37. In conflict situations and zones facing security risks, targeting is critical in project implementation to ensure that interventions do not fuel further tensions. It is important for communities, and beneficiaries to have a good understanding of the process used. Appropriate dissemination of information, good communication and local consultations will be undertaken to ensure that beneficiaries understand selection criteria, implementation processes and expected
16 outcomes and build trust. A number of channels will be used to enhance communication and understanding such as community meetings, mobile phones, and conflict resolution systems, and a grievance redress mechanism will be put in place to address any weaknesses in participatory and consultation processes.
38. At this stage, in terms of specifically identifying intended beneficiaries, the available data on population, cooperatives, groups, producer organizations, economic activities, income, employment, etc. is very limited. However, the team is currently finalizing an Economic Sector Work (ESW) on youth employment. Furthermore, as part of the Project Preparation Advance (PPA), a beneficiary assessment is scheduled to be completed by September 2013 and will inform project implementation. The objectives of the beneficiary assessment are to determine: (i) the number of people involved in project activities; (ii) the number of people and target groups/cooperatives benefiting from project outcomes and their needs; (iii) the wider community benefiting from potential project impacts; and (iv) the selection and targeting criteria for valleys and perimeters. These four requirements recognize local practices and are not exclusionary in any way. Finally, a baseline survey will also be conducted to provide base values for the chosen indicators. The results of this survey and the beneficiary assessment will be outlined in the Project Implementation Manual (PIM). Table 1 summarizes the scope of intended beneficiaries and targeting criteria by component.
Table 1: Beneficiaries and Targeting Criteria Component Beneficiaries Targeting Criteria Component 1: Cooperatives, small- 0 Selecting valleys and perimeters: based on Support to holders, women's rice, horticulture and aquaculture potential; agricultural groups, transporters, free of land mines and land conflicts. production,post- private service 0 Selecting beneficiaries: based primarily on harvest, and providers (suppliers, membership of farmer's groups, and marketingfor buyers, etc.) existence of strong community selected value- organizations (cooperatives, youth groups, chains women's associations and network). * Land criteria: existence of valid land titles for the use of perimeters. Component 2: Rural road users and Rehabilitation: Selection criteria are Rural accessibility the rural population of mainly based on cost-benefit analysis of targeted areas candidate links. Basicf accessibility: The poorest and least accessible CRs will be targeted on the basis membership_ofavailable poverty data and road surveys.
39. A baseline survey including an institutional assessment will be conducted to determine the target groups and the selection criteria for valleys, perimeters, and individual and group beneficiaries based on their needs. The results of the survey will be outlined in the Project Implementation Manual (PIM).
17 C. Project Financing
1) Lending Instrument
40. The proposed lending instrument is an Investment Project Financing (IPF) in the form of an IDA credit. The standard country terms for IDA credits will apply for this project, with a final maturity of 40 years including a grace period of 10 years.
18 2) Project Costs and Financing
Table 2: Project Costs Including Contingencies Component Co-financing in US$ Total million Amount in IDA GoS US$ million 1. Support to agricultural production, post-harvest, and 22.0 2.0 24.0 marketing for selected value-chains
1.1 Rehabilitation of rice valleys and horticulture perimeters 8.0 - 8.0
1.2 Provision of productive assets in support of production and 5.0 2.0 7.0 productivity for rice, horticulture and oysters, including the purchase of machinery and inputs and capacity building
1.3 Provision of small basic post-harvest infrastructure 2.0 - 2.0 including small commercial/logistics platforms
1.4 Improvement of market linkages through the 7.0 - 7.0 development of the IEPB 2. Rural Accessibility 13.0 2.0 15.0 2.1 Spot improvement of about 350 km of local roads linking 3.5 - 3.5 CRs to the classified network or to their district centers
2.2 Rehabilitation/periodic maintenance of 200 km of rural roads 8.2 2.0 10.2 to improve access to commercial infrastructure and to areas with high agricultural potential
2.3 Pilot labor-based road maintenance initiative 0.5 0.5
2.4 Capacity building of the ARDs and CRs in the area of 0.8 - 0.8 basic road maintenance planning, implementation and supervision 3. Project Implementation and capacity building in DDR 5.0 2.0 7.0
3.1 Capacity building of key actors, including ANRAC in 0.6 - 0.6 broader peace building processes and the basics of DDR of ex-combatants
3.2 Strategic studies 0.6 - 0.6
3.3 Support to project management, monitoring and 3.8 - 3.8 evaluation
3.4 Construction & Equipment of Offices for the 3 ARDs - 2.0 2.0
Total Project Costs 40.0 6.0 46.0
19 D. Lessons Learned and Reflected in the Project Design
41. The project design has incorporated lessons learned from implementation of the Casamance Emergency Project as well as lessons from other IDA financed value chain and growth pole projects. Experience from the design and implementation of the Senegal Agricultural Competitiveness Project and implementation of the Participatory Local Development Project (PLDP) have also been incorporated in the design of this project. The rural accessibility component builds on key lessons learned from rural transport projects in SSA, Asia, and Latin America. The main lessons incorporated are:
(a) Recent research by the World Bank5 finds that value chain development is not only feasible in fragile environments but it has considerable peace-building potential. Value chains do not depend on government institutions but rather lend themselves to a fragmented social and political setting. In fragile situations there clearly is still a role for the government, but it is a facilitating rather than a leading role. Donors in turn have an important role to play in nurturing value chains when the private sector is still relatively weak-as is the case in Casamance. The Bank report argues that by restoring legitimate market links and relationships of trust among different social groups in fragile and post-conflict environments, value chain development, especially in agriculture and agro industrial activities, offers both economic and peace-building benefits.
(b) The core of value chain development involves strengthening relationships, which are critical in fragile and post-conflict environments where trust and social cohesion have eroded considerably. As they are rebuilt, relationships and networks can provide smaller scale actors in a value chain a basis for collective action and to demand greater government responsiveness and accountability. Agriculture value chains can be effective in promoting pro-poor growth when they succeed in linking poor producers into well-functioning local, national or even global markets. Integration of small and poor producers can effectively reduce a sense of social and economic exclusion which characterizes many conflict settings, including Casamance. In addition, as women tend to be predominant in agro industrial activities, value chain development in rural areas can also have a positive gender impact. As many post-conflict evaluations frequently point out, training and support programs for youth and women must be accompanied by measures that increase their access to markets and assets, and especially to participate in the cash economy.
(c) To maximize both the economic and peace-building potential of value chains, the sectors selected for support should consider the potential for job creation, particularly for youth and conflict-affected populations; broaden overall access of poor communities to markets, products and services; and diversify economies and livelihoods to avoid over-dependence on a few commodities, and where possible supporting basic livelihood opportunities that contribute to
5 Nora Dudwick and Radhika Srinivasan. 2013. Creating Jobs in Africa's FragileStates. Directions in Development. World Bank, Washington, DC.
20 both food security and to profitable market opportunities.6 The proposed project draws on these findings and lessons.
(d) Complementing and leveraging existing initiatives. Under the first component, the project will leverage existing irrigated sites, flooded and floodable valleys developed with the help of other partners to boost rice and horticulture production. This component also complements an initiative of the municipality of Bignona for the construction of a logistics platform whose initial phase was supported by other donors (French Cooperation, and World Bank funded Agriculture Markets Development Project).
(e) With regards to rural accessibility, key lessons are: (i) improvement of rural roads leads to better access to social services (health and education) and to income generating opportunities; (ii) participatory planning at the local level allows for the identification of investments which are best tailored to rural needs; and (iii) involving youth (men and women) in road maintenance enhances the status of youth in environments where income generation is limited to the off-farm season.
IV. IMPLEMENTATION
A. Institutional and Implementation Arrangements
42. At the national level, a Project Steering Committee (PSC) chaired by a Representative of the President of the Republic will provide overall orientation to the project. The PSC has been established by presidential decree No. 008848, dated June 12, 2013. A provision will be allocated in the budget as part of the project coordination to support the operating costs of the PSC (meetings and travel).
43. The Coordination Office (CO), which reports to the PSC, has the overall fiduciary responsibility of the project. Furthermore, the CO will prepare annual work plans and budgets, and ensure coordination with technical ministries and other donors. The CO is staffed with a Coordinator, an M&E Specialist, and a Financial Management Officer.
44. The Bank has reviewed an advanced draft of the PIM which will be finalized before project effectiveness. It will confirm the proposed organizational and technical procedures that will govern project implementation and the roles and responsibilities of the Coordinator and the ARDs. It will include an administrative and financial management manual for fiduciary purposes (financial management and procurement).
45. The investment components of the project (1 and 2) will be implemented by the ARD of Ziguinchor (ARDZ), Kolda (ARDK), and S6dhiou (ARDS). ARDs have the official status of public local agencies with administrative and financial autonomy. Law No. 96-06 of March 22, 1996, creating the Local Government Code, provides in its Article 37 that the Regional Council,
6 USAID. 2009. A Guide to Economic Growth in Post-Conflict Countries. Office of Economic Growth, Bureau of Economic Growth, Agriculture and Trade, USAID, Washington, DC.
21 with the Municipalities and the Rural Communities, supports the constitution of regional development agencies. Their mandate is the overall coordination and harmonization of local development interventions and initiatives by local governments. They operate under the technical oversight of the Ministry of Local Government and Regional Development and under the financial supervision of the Ministry of Economy and Finance. Their staff is competitively recruited based on the 2008 reform of ARDs implemented in the context of the Bank-supported PLDP. Typically, an ARD comprises five departments (Training and Planning, Local Economic Development, Infrastructure, Monitoring and Evaluation, and Administrative and Financial), each of which is led by a full-time staff with an open-ended contract. Each ARD is led by a Director, also recruited on a competitive basis. ARDs are increasingly serving as implementation units for many donors, including the World Bank. Component 3 will be implemented by the CO. ANRAC will be the beneficiary of trainings in DDR and peace building under subcomponent 3.1.
B. Partnership Arrangements
46. The project seeks to partner with donors in scaling up initiatives that can promote sustainable peace in Casamance. The EU, UNDP, AfDB, USAID and bilaterals such as Germany, France, Spain, and Italy have important programs, some closely related to governance and peace building (e.g., USAID's Programme de Gouvernance au Senegal with a specific component Dialogue pour la Stabilit Sociale en Casamance). Most of the humanitarian organizations/NGOs, (WFP, UNHCR, Handicap International, the International Red Cross, etc.) are also active, including in demining activities. The large number of actors active in Casamance requires strong coordination by GoS, and the project will assist the Government to set up an effective coordination mechanism.
47. The project will facilitate the establishment of commercial partnerships between cooperatives, suppliers, buyers, providers of financial services and products, and other operators-including those in the IEPB-in the value chain (suppliers or demanders of services) via contractual arrangements. This will strengthen links between production, post- harvest, and markets. Likewise, the project will facilitate access by small holder rice producers and cooperatives to information on insurance services, prices and other knowledge services. The project will enhance partnership between cooperatives and other operators targeted by the project to facilitate access to credit through financial institutions such as Caisse Nationale de Cridit Agricole au Snigal (CNCAS), Cridit Mutuel du Snigal (CMS), Microcred,Agence de Credit et d'Epargne(ACEP), etc.
48. IFC is not directly involved in Casamance, but it supported the development of a micro- finance institution which is operating in Casamance from its Ziguinchor branch. The project will seek support from the IFC Business Edge Capacity Building Program in the area of business plans, marketing, and bookkeeping, for cooperatives, GIEs, and other value chain stakeholders. With regards to the management of the IEPB, IFC has expressed an interest in providing advisory services to help structure the Public-Private-Partnership (PPP) arrangements.
22 49. In the field, the project will continue to mobilize partners to expand investments in agriculture value chains. While no co-financing has been committed to date by other donors, the project will continue to seek to mobilize additional funding from other partners to expand investments in Casamance. A donor meeting is scheduled to take place under the PPA in October 2013. Beyond the individual value chain, the project also seeks joint cooperation in improving the overall competitiveness of the Casamance agriculture sector.
C. Results Monitoring and Evaluation
50. Each ARD has an M&E specialist who will be partially committed to the implementation of the project. The specialist will be responsible for collecting and analyzing data, for updating the MIS database, the baseline and for providing data analysis to the PSC. The objective will be to ensure close monitoring of activities but also to provide data and analysis to the coordinator to promote and stimulate partnerships to guide the use of project funding. A senior M&E Specialist will be recruited by the project and be responsible for compiling and analyzing data from the ARDs, presenting analyses and reports to the PSC regarding project activities, results and impacts. Collaboration will be developed with other information systems and statistical services that may receive support from the project to strengthen or broaden their activities.
51. The M&E system will generate, aggregate and systematically record information/data from various levels (regions, departments, and communities as well as qualitative and quantitative surveys) related to the project outcome indicators/results, implementation progress and performance, and project characteristics. It will analyze such data to evaluate impacts and outcomes, track progress, identify implementation bottlenecks for quick resolution, and monitor the quality of the process. The M&E system will also document, disseminate and facilitate discussion on key lessons to users and stakeholders at different levels for learning purposes. The PIM will include a detailed M&E chapter describing the M&E system, procedures and tools.
D. Sustainability
52. The project is fully aligned with the GoS Strategie Nationale de Developpement Economique et Sociale and it will support programs that will advance the decentralization and territorial strategy. Investments supported by the project are also designed to attract private sector involvement during and beyond the implementation timeframe of the project. The private management arrangement proposed for the Bignona platform will contribute to the separation of roles and thereby facilitate accountability for service delivery and enhance the facilitation roles of ARDs. Regional agencies, which are basically local government institutions supported by the project, will remain operational after the project closes. The technical assistance and training provided will focus on building the capacity of stakeholders at all levels to ensure sustainability of investments and maintenance. The maintenance scheme for all infrastructures, particularly rural roads, aims at fostering environmentally and socially (gender) responsible strategies based on low costs and participatory approaches.
23 53. In terms of Governance and Accountability, the project will be improving transparency and enhancing access to information disclosure through stakeholder surveys and forums for feedback, civil society participation, and collaboration with the private sector. Furthermore, the decentralized procurement and financial management of the project at the ARD level is a good risk mitigation measure for project management, implementation speed and disbursement.
V. KEY RISKS AND MITIGATION MEASURES
A. Risk Ratings Summary Table
Table 3: Risk Ratings Summary
Risk Rating Stakeholder Risk H Implementing Agency Risk - Capacity L - Governance M Project Risk - Design H - Social and Environmental M - Program and Donor H - Delivery Monitoring and Sustainability M Overall Implementation Risk S L: Low; M: Moderate; S: Substantial; H: High
B. Overall Risk Rating Explanation
54. The project has an overall risk rating of Substantial. The main risk remains that tensions, internal and/or external, may intensify in Casamance, thus leading to renewed conflict and insecurity. Key risks associated with the project and proposed mitigation measures are described in the Operational Risk Assessment Framework (ORAF) worksheet (see Annex 4). The first category of risks is related to the stakeholder and sector/multi-sector risks and the impacts of the conflict. The crisis has prevented the region from fulfilling its considerable economic potential both as an agricultural productive area and a tourist destination. Security has been identified as the main issue holding back economic development because of mine infestations on agricultural lands, and attacks and robberies on civilians, particularly travelers and small business owners. In addition, instability outside Casamance's borders could undermine the region's stability.
24 VI. APPRAISAL SUMMARY
A. Economic and Financial Analyses
55. The project will provide economic and social benefits, at the overall project level and at the level of each of its two operational components. Because the types of benefits provided by these two components (agriculture, transport) are not measurable in the same terms, there are no plans to carry out a comprehensive Cost Benefit Analysis at the level of the whole project.
56. The financial profitability of the project is determined using indicators of investment returns including net present value (NPV) and economic rate of return (ERR) as well as analysis of the risks that could be involved. The methodology is based on cost-benefit analysis with a 12 percent discount rate and is conducted for the selected value chains: rice, banana, sweet potato, mango and cassava, and the Bignona platform. The results obtained indicate that the project is economically and financially profitable with a largely positive NPV for all sub-components and ERR varying between 37 percent for the platform and 90 percent for the production of rice.
Rice and horticulture production 57. In Senegal, there is a valuable market opportunity for both rice and horticulture. Assuming a conservative hypothesis of a 10 percent increase in rice production over the project implementation period, the NPV for one hectare of rice production ranges between US$4,400 in Kolda to US$9,000 in Ziguinchor (Table 4). Profitability remains high when non-financial costs and benefits are taken into account. Under the comparable ranges of profitability are observations in the economic and financial analysis of the selected horticulture value chains (Table 5). In particular, the project is expected to have an important economic impact on the banana value chain as the existing bottlenecks severely undermine development of this product.
58. The results are broadly robust, and the two main risks identified are linked to the conflict situation and the functioning of the platform; they are mitigated under the project and through policy dialogue.
Table 4: Economic and Financial Analysis of Rice Production Rice Production (US$) Ziguinchor S6dhiou Kolda Financial Analysis (Results for 1 ha) ERR (%) 89 84 47 NPV (at 12% discount rate) 9,200 9,000 4,400 Economic Analysis (Results for 1 ha) ERR (%) 67 63 68 NPV (at 12% discount rate) 6,400 6,100 9,200 Domestic Resource Cost 0.60 0.30 0.13 (DRC)
25 Table 5: Economic and Financial Analysis of Horticulture Production Horticulture Production (US$) Mango Sweet Cassava Banana Potato Financial Analysis ERR 45 75 70 70 NPV (at 12% discount rate) 37,500 44,800 9,700 86,900 Economic Analysis ERR 42 54 60 75 NPV (at 12% discount rate) 31,400 22,800 5,800 102,800
Market oriented infrastructurepackage 59. The extent of project intervention in the IEPB is not fully defined; thus, cost benefit analysis was not possible. However, the eligibility criteria includes the condition that a full feasibility study be made available for each subcomponent of IEPB showing, in particular, an ERR of at least 12 percent and confirming its financial viability. The preliminary analysis of the Bignona platform indicates that it is economically and financially viable. Under a hypothesis of 54,000 tons passing through the platform, the ERR is estimated at 37 percent (Table 6). The sensitivity analysis indicates that it remains profitable at 20,000 tons of products passing through the platform. This volume of activity is less than 15 percent of the current exports from the department of Bignona. It is estimated that over 25,000 tons of horticulture products (half of the exports from the department) will transit through the platform, from year 1 of its opening.
Table 6: Return on Investments of the Bignona Platform Financial Analysis Return on investments From year 5 NPV (at 12%, in US$ million) 23, 000,000 Economic Analysis ERR (%) 37 NPV (at 12%, in US$ million) 17, 000,000
Rural Accessibility
60. The methodologies for economic analysis are adapted to the two types of interventions in the rural accessibility component: * Basic Access: For basic motorized access where the objective is to assure year-round access through spot improvements, the level of traffic on candidate links are well below 50 vehicles per day (vpd). In such cases, the design of works will be geared toward finding the least-cost solution to arriving at a minimum level of service. A Cost Effectiveness Analysis (CEA) will be performed and will involve a Cost Effectiveness Indicator (CEI) defined as the number of rural population served per unit of cost. The CEI will be used to rank candidate links.
26 * Periodic Maintenance/RehabilitationProgram: Key rural links which cater to access to markets and agricultural areas feature higher volumes of traffic and hence require Cost- Benefit Analysis (CBA) to justify higher levels of investment. For such links, the IRR and NPV at a 10 percent discount rate were determined on the basis of savings in the Vehicle Operating Costs (VOC) using the Road Economic Decision Model (RED). An economic analysis has been carried out which yielded the following results for the base scenario, including a sensitivity analysis:
Table 7: Economic Analysis of Periodic Maintenance/Rehabilitation of Rural Roads Ziguinchor Kolda
Diegoune Affiniam Baila Sindian Mampalago Balandine Kolda Djibiione Smndian Balingore Diatock Suelle Djibidione Djibidione Pata Balandine
Investment 270 594 450 576 1260 252 2370 (US$ 000) EIRR (base 39% 39% 15% 20% 20% 20% 13% scenario) NPV at 10% discount rate 717 1670 212 522 1142 228 716 (US$ 000) Sensitivity Analysis (A) 20% increase 32% in 32% 12% 16% 16% 16% 11% investment cost (B) 20% decrease in 30% 30% 11% 15% 15% 15% 9% traffic (A) + (B) 25% 1 25% 1 8% 12% 1 12% 1 12% 1 7%
61. The results indicate that the economic benefits of the rehabilitation/periodic maintenance works are acceptable relative to the main risks considered in the economic analysis, namely, higher investment costs (20 percent increase) and lower future benefits due to lower traffic (20 percent decrease).
B. Technical
62. Rehabilitation of rice ecosystems. The selection of valleys will be based on specific criteria including areas cleared of landmines, absence of land disputes, existence of youth or
27 women associations, technical feasibility, basic dyke facilities (if necessary the dykes will be strengthened by refilling of materials), valleys equipped with salt control dams, and expected impacts. The approach is based on extensive consultation with users, including women. These actions will also include construction of intermediate storage and regulatory structures upstream, putting in place small dykes and drainage systems which do not require heavy investments, provision of internal access and crossing structures, and implementation of erosion control systems including agroforestry activities.
63. Rehabilitation and development of horticulture perimeters. Perimeters mostly owned by women and youth will be targeted. Perimeters generally range from 1 to 3 hectares, although some may reach 10 hectares. These perimeters are managed collectively by women and/or youth groups who individually work on several plots. The crops intended for sale and self-consumption include eggplant, okra, sweet potato, bissap, pepper, tomato, carrot, cabbage, and onions. Farming methods and irrigation are rudimentary and manual. In new farms, investments will include basic infrastructure such as fencing, water supply systems, start-up inputs and equipment.
64. Market oriented infrastructure. The land targeted to host the IEPB is a 3-hectare plot located in the vicinity of Escale or business center of the city. The platform will contribute to removing the constraints facing micro-enterprises generally comprised of women's groups (lack of organization, difficulties in accessing larger markets, weak management capacities, limited access to financing, and limited access to modem technologies). The IEPB will be developed as a pilot and based on:
(i) A public-private partnership with public investment aiming to stimulate private operators in agriculture value chains. Management of the platform will be private based on results, financial viability and sustainable private investments. (ii) A community productive infrastructure to incubate women's groups and other small private enterprises around a cluster of high value added products with good market prospects. (iii) Criteria for selecting and targeting clusters of incubated women's groups or small private enterprises. (iv) Prices of services rendered at the platform are acceptable to users. (v) A generation of value added products that meet quality, packaging and marketing standards that can satisfy local, national, regional and international norms. (vi) Contractual arrangements and the professionalization of business relationships between users of the platform, including providers of support services (transport, financial services) and producer organizations delivering agricultural products.
65. Rural Accessibility. The proposed investments of the rural accessibility component will not entail major technical difficulties. The technical standard for the basic access roads is set at a level sufficient to ensure basic, minimum road accessibility, which is defined as accessible by motorable traffic throughout the year with interruptions less than 3 hours per event and cumulatively less than one week per year. Improvement of basic access links will be performed by small-scale contractors using labor-intensive methods to the extent feasible and by small and medium enterprises (SMEs) for more specialized works. Rehabilitation/improvement of key rural roads will involve improvements to existing surfaces, structures, and drainage systems.
28 Works will be performed through conventional contracting and will follow the applicable national standards.
66. Supervision of works, including implementation of environmental mitigation plans will be provided for all works under the component through the hiring of experienced consulting firms.
C. Financial Management
67. A financial management (FM) assessment of the main project implementing entities, i.e., the CO, ARDZ, (ARDK, and ARDS, was conducted. The objective of the assessment was to determine whether these entities have adequate FM arrangements in place to ensure that the funds will be used efficiently and economically for the purposes intended. Such FM arrangements comprise budgeting, accounting, internal controls, funds flow, financial reporting, and auditing arrangements which: (a) enable the recording of all transactions and balances related to the project; (b) facilitate the preparation of regular, timely, and reliable financial statements; (c) safeguard the project's assets; and (d) are subject to auditing arrangements acceptable to the Bank.
68. The assessment complied with the Financial Management Manual for World Bank- Financed Investment Operations that became effective on March 1, 2010 and AFTFM Financial Management Assessment and Risk Rating Principles. The conclusion of the assessment is that the FM arrangements for the project have to be set up and meet the Bank's minimum requirements under OP/BP10.00. The residual risk rating for the CO, ARDZ, ARDK and ARDS is therefore 'Substantial' until the mitigation measures are implemented.
69. The project will be implemented under the oversight of the PSC and the overall fiduciary responsibility of the CO. Assessment of the FM system has identified the following capacity constraints: (i) non available FM officer with relevant experience on Bank procedures, (ii) lack of accounting software; and (iii) weak internal control environment. The first constraint has been addressed through the effective recruitment of a FM Officer for the CO whose experience and qualifications are acceptable to the Bank.
70. As a result of the FM capacity constraints, a Financial, Administrative and Accounting Procedures Manual (included in the PIM) will be available by effectiveness in order to maintain an appropriate safeguard of assets and funds, clarify roles and responsibilities of all stakeholders, and provide clear description of budget monitoring. Furthermore, the purchase and installation at the CO, ARDZ, ARDK, and ARDS, of specialized accounting software for the project will be stated as a dated covenant in the Financing Agreement (FA) to be met no later than two months after the project has become effective.
71. Before negotiations, the Borrower prepared and agreed with the Bank on: (i) the format of the Interim Financial Reports (IFRs), (ii) the terms of reference of the internal auditor (short term consultant), and (iii) the terms of reference of the external audit.
29 D. Procurement
72. Procurement activities for the project will be done by ARDs in the regions covered by the project. ARDs will benefit from the support of central units in relevant institutions. The assessment, done in July 2012, reviewed the proposed organizational structure of the project implementation and the interaction between the project staff responsible for procurement and the other technical staff and stakeholders in project implementation. It is worth mentioning that these ARDs were field-based executing agencies for the Bank-financed PDLP which was implemented during 2006-2012. As such, they are broadly familiar with Bank procedures. The Civil Engineer of the ARD is generally handling procurement tasks, especially for works and works-related consulting.
73. Results of the procurement assessment of the proposed project revealed a Substantial risk rating. ARD teams have experience in the procurement of small contracts and lesser experience with medium contracts, e.g., construction of small infrastructure (US$80,000) under diverse procedures (national, World Bank and other donors). Based on the assessment, the following has been agreed upon with the Government to improve procurement capacity. First, a procurement specialist has been recruited and will be based in ARDZ. The specialist will be in charge of the supervision of the procurement function and the overall quality of procurement under the project. Second, in view of the size of contracts expected under the project, three procurement assistants will be recruited before project effectiveness; one based in each region (Ziguinchor, S6dhiou and Kolda).
E. Social (including Safeguards)
74. Social safeguards. In terms of social safeguards, the project will neither involve displacement of population, nor require land acquisition. However, the project triggers the Bank's policy on involuntary resettlement (OP/BP 4.12) in anticipation of unlikely losses of assets and revenue. Furthermore, since not all project sites could be identified before appraisal, the Borrower has prepared a Resettlement Policy Framework (RPF) which outlines steps to be taken during implementation when actual sites and locations are identified. For the Bignona platform, a Resettlement Action Plan (RAP) is not necessary as the municipality has already secured the needed land prior to the involvement of the Bank. Therefore, the RPF encompasses activities planned in the development of the platform and has been duly reviewed and cleared by the Bank team.
75. Youth. As women and youth are the intended beneficiaries of the project, a Youth Employment Assessment focused on Casamance was completed in July 2013 by the team. While the size of the youth cohorts is increasing, their insertion in the labor market is important in order to boost the economic development of the region and contribute to social stability. The assessment indicated that the crisis and the stagnation of the economy of the Casamance region have trapped its youth into a cycle of underemployment, unemployment, poverty and social hazards. The demographic structure of Casamance reflects that of the country with 60 percent of the population being less than 30 years old. According to the study, 51 percent of young men and 60 percent of young women (15-30 years old) are unemployed. However, the inactivity rate of
30 young women is particularly high in urban areas: about 45 percent of them are inactive, in contrast with about 39 percent of their male counterparts in the same areas. Among inactive young women, 48 percent are in training compared to 70 percent of young men. Not-Employed- Neither-in-Training rates are respectively 18 percent and 15 percent in urban and rural areas among young men, and 35 percent and 27 percent in urban and rural areas among young women.
76. Gender. Analysis of a recent qualitative study completed in July 2013 reveals how the Casamance conflict and ongoing social unrest in the region have adversely affected women, especially their ability to feed their families and make a living through subsistence agriculture, fishing, vegetable gardening, fruit and vegetable processing, and the harvesting of forest and sea products. In this study, the leaders of 12 grassroots associations which focus on women in development and peace building, delineate three reasons why women have ceased or slowed their participation in subsistence farming and other essential activities: (i) the ongoing threat of landmines in agricultural fields continues to terrorize women; (ii) some women are suffering from memories of assaults and sexual violence against them by armed men and most women still fear contact with such men; and (iii) women remain wary of having their subsistence and cash crops confiscated by rebels or other groups who take advantage of the region's protracted insecurity. Women in the region have lost a considerable amount of the autonomy they enjoyed before the advent of the conflict in 1982. In addition to these direct threats to women's work and well-being posed by the conflict, women in Ziguinchor lag behind women in other regions of Senegal due to a lack of motorized farming equipment, absence of sustainable irrigation for rice cultivation and horticulture, a deficit of reliable public transportation and infrastructure, a paucity of fruit, vegetable and cereal processing plants, and inadequate infrastructure to support the commercialization of fresh and processed farm products.
77. Furthermore, an escalation of violent crimes in rural areas over the past years has increased the number of women in poverty, women suffering from Post-Traumatic Stress Disorder (PTSD) and other mental illnesses, internally displaced and refugee women, war widows who struggle for access to limited arable land and other resources to support their dependent children and family members, including disabled, sick and elderly dependents.
78. The conflict has forced out men in many rural communities, forcing women to become heads of households without having the means to effectively meet their new responsibilities. In multi-ethnic villages, the conflict has polarized people along ethnic lines creating distrust among women of different ethnic groups who previously relied on one another and worked together harmoniously. This in turn has decreased agricultural productivity and undermined social stability.
79. Overall, the Casamance conflict has rendered women far more vulnerable in terms of food security, health, well-being and social status. It has caused an unprecedented feminization of poverty in Casamance. At the same time, numerous grassroots women's associations and networks are now working for peace and reconciliation in Casamance. These organizations are active in rural communities to promote women's socioeconomic empowerment and participation in decision-making processes. Women leaders interviewed feel that the project will improve the status of women by enhancing the region's capacity for rice production, horticulture, food processing, training and marketing of produce, and by strengthening agricultural value chains.
31 F. Environment (including Safeguards)
80. The project is classified as category B. Given the nature and size of the eligible activities, five Bank safeguard policies are triggered: OP 4.01 on Environmental Assessment; OP 4.04 on Natural Habitats; OP 4.09 on Pest Management; OP 4.11 on Physical Cultural Resources; and OP 4.12 on Involuntary Resettlement. An Environmental and Social Impact Assessment (ESIA) of the Platform of Bignona has been completed by the municipality. The following other safeguard instruments have been prepared and cleared internally: an Environmental and Social Management Framework (ESMF), a Pest Management Plan (PMP), and an RPF.
81. Screening process. Prior to its commencement, as soon as the implementation site is identified, each subproject/activity will be processed through the environmental and social screening procedure detailed in the ESMF. The screening will be executed by environmental and social safeguard focal points at the ARD level and will classify subprojects as B or C; category A subprojects will not be eligible for financing. The results of the screening will be processed according to the national regulations under the supervision of the Direction de l'Environnement et des Etablissements Classes (DEEC).
82. Follow up and reporting of mitigation measures. The environmental and social mitigation measures summarized in both the ESMP (Bignona) and the ESMF, as well as the specific mitigation measures approved for the subprojects, will be executed, monitored and reported in: (i) a specific Safeguard Monitoring Report; and (ii) the Environmental and Social Safeguards section of the overall project periodic report. The responsibility of the follow-up is with the ARDs, while the DEEC will be copied on all related reports. The following indicators will be monitored, as part of the project global monitoring system: (i) percentage of eligible activities processed through the screening procedure; (ii) number/frequency of safeguard supervision and annual project reviews undertaken; (iii) number of trainees on implementation and requirements of the Bank's safeguard policies; and (iv) section on the safeguards implementation in the project periodic reports.
83. Furthermore, bio-physical and social changes (both negative and positive) from the baseline-such as changes in flora and fauna biodiversity, land resource management, and improvements in agricultural activities-in the natural environment in project intervention areas would be measured as part of the project global monitoring system. The ESMF and the RPF include institutional arrangements, outlining the roles and responsibilities for the various stakeholder groups involved, for screening, review and approval of activities, as well as implementation and monitoring of their mitigation measures. The environmental and social safeguard focal point within the three ARDs will collaborate upstream with the procurement specialist for the mainstreaming of measures in bidding documents and annual work plans, and downstream with the M&E specialist on field supervisions to ensure proper compliance by enterprises and beneficiaries. Annex 7 summarizes critical safeguard measures to be implemented.
84. Public Consultation and Disclosure. Prior to disclosure in-country on July 29, 2013 and at the World Bank InfoShop on July 30, 2013, stakeholder workshops were organized, involving relevant project stakeholder groups in government agencies, private sector and representatives of
32 professional and farming organizations, civil society, and NGOs. Recommendations from both ASPEN and stakeholders' workshop were reflected in the final safeguard reports, prior to disclosure. These recommendations and relevant provisions from the safeguard instruments will be reflected in PIMs.
Table 8: Safeguards Policies Triggered Safeguard Policies Triggered Yes No Environmental Assessment (OP/BP 4.01) x Natural Habitats (OP/BP 4.04) x Forests (OP/BP 4.36) x Pest Management (OP 4.09) x Physical Cultural Resources (OP/BP 4.11) x Indigenous Peoples (OP/BP 4.10) x Involuntary Resettlement (OP/BP 4.12) x Safety of Dams (OP/BP 4.37) x Projects on International Waterways (OP/BP 7.50) x Projects in Disputed Areas (OP/BP 7.60) x
33 Annex 1: Results Framework and Monitoring Senegal: Casamance Development Pole Project
Project Development Objectives (PDOs): (i) enhance the agricultural productivity of youth and female farmers for selected crops; and (ii) improve transport linkages in isolated rural communities in targeted areas of the Casamance region. Baseline Cumulative Target Values Data Unit of Original Frequ Source! Responsibilit PDO Level Results Indicators Measure Project y for Data o ment met StartSat 2014 2015 2016 2017 208Collection2018 ency Methodolo Cleto (2013) gy Average increase in rain-fed rice F Tons/Ha 0 0.4 0.9 1.6 1.6 1.6 annual reports/ Coordinator yield. survey ARDs Average revenue per hectare of reports! Coordinator horiculre.enu per hectareofCFAF 250,000 315,000 400,000 450,000 600,000 675,000 annual rey Ards horticulture. survey ARDs Tons of local products passing reports! Coordinator through the platform of Bignona Tons 0 0 0 15,000 20,000 25,000 annual re ARDs per year. Municipality
Share of rural population with access to an all-season road (Casamance region) 52%7 52% 54% 56% 58% 60% reports! [Supplemental information: Number 614,000 614,000 634,000 657,000 681,000 705,000 survey Number of rural people with access to an all-season road]
This number will be confirmed by the ongoing rural accessibility study in Casamance.
34 Beneficiaries
Direct Project Beneficiaries of which, Number 0 5,000 10,000 25,000 40,000 50,000 annual reports/ Coordinator Females % 0 40 40 40 40 40 survey ARDs * Youths % 0 50 50 50 50 50
Baseline Unit of Origina Cumulative Target Values Data Responsibili Intermediate Level Results 1 Frequen Source/ o Measure ty for Data Indicators U ment Project 2015 2016 2017 2018 cy Method Collection Start ology (2013) . Coordinator Enterprises created/developed at reports/ ar 0 0 0 5 10 15 annual suvyARD the BignonatheBinoa platform L_Ior Number survey Municipality Targeted clients satisfied with reorts/ agricultural and rural advisory % 0 0 78 80 85 85 annual ARDs services survey People in the project area aware of the project's beneficiary targeting % 0 50 50 50 50 50 annual re C RD criteria criteriasurvey ARDs Rice valleys 0 5,000 15,000 25,000 30,000 annual reports ARDs rehabilitated/developedRealaeysd ha 0 Women and youth groups provided with equipment and input packages: annual reports ARDs pa*Rice Re E Number 0 10 20 30 40 50 * Horticulture 0 15 30 45 60 75 * Oyster farms 0 0 02 02 02 02 Area provided with irrigation services for horticulture ha 0 0 1,000 2,000 3,000 3,000 annual reports ARDs
35 The platform of Bignona is constructed and functional. E (yes/ no) no no no yes Yes yes annual reports Municipality Agricultural storage facilities rehabilitated/constructed. O Number 0 0 0 5 10 15 annual reports ARDs
Average increase in rain-fed rice Tons 0 30,000 72,000 135,000 157,000 180,000 annual reports/ Coordinator output. survey ARDs ARDs/ Rural Roads Rehabilitated. km 0 0 100 250 400 550 annual reports AGEROUTEARDUT
A study on national development (yes/ no) no no yes yes Yes yes annual reports Coordinator pole strategy is completed
Staff trained in DDR. 0 Number 0 20 40 60 80 100 quarterly reports Coordinator ARDs
36 Annex 2: Detailed Project Description Senegal: Casamance Development Pole Project
1. Component 1: Support to agricultural production, post-harvest, and marketing for selected value-chains (US$24.0 million, out of which IDA finances US$22.0 million). Carrying- out of a program aiming at increasing rice productivity and overall rice production among smallholders to improve food security, through four subcomponents focusing on key areas of production, post-harvest and marketing: (i) rehabilitation and development of selected rice valleys and horticulture perimeters, and provision of small scale post-harvest infrastructure (US$8.0 million); (ii) provision of assets to enhance the production of rice, horticulture and oysters, and to increase the productivity of the rice, horticulture oysters sub-sectors (US$7.0 million out of which IDA finances US$5.0 million); (iii) provision of small scale post-harvest infrastructure, including collection points for agricultural produce (US$2.0 million); and (iv) improvement of market access through the development and operation of the Integrated Economic Platform of Bignona (IEPB) (US$7.0 million).
2. The design of this component responds to the demand by Casamance agricultural cooperatives, and small-scale private operators for support to production, marketing, and commercialization of agricultural commodities. The proposed activities will restore the missing links in the selected value-chains. Component I will concentrate on key areas in production, post-harvest and marketing, including: (i) increasing rice, horticulture and oyster production and productivity: related investments will include rehabilitation of small scale hydraulic structures in rice cultivated valleys, development of perimeters for horticulture, rehabilitation/development of oyster farms, and provision of machinery, equipment, and inputs; (ii) adding value in post- harvest by focusing on distribution platforms, storage and/or processing facilities, warehouses, etc.; and (iii) improving access to markets by financing market infrastructure such as the IEPB and market information systems.
3. Component I will support cooperatives of the Casamance region involved in the rice, horticulture, and oyster value-chains for the rehabilitation of rice valleys, horticulture perimeters, oyster farms, and provide basic post-harvest infrastructure. It will also provide productive assets to small holders -members of cooperatives- in support of production and productivity in the selected value-chains. In order to better link production and post-harvest activities to markets, the component will facilitate commercial partnerships between cooperatives and value-chain stakeholder such as suppliers, buyers, transporters, etc. around existing and planned platforms. Eligibility criteria for the packages in the form of matching grants as well as implementation mechanism will be detailed in the Project Implementation Manual (PIM). Component I will also finance institutional diagnosis of cooperatives aimed at identifying capacity gaps and needs. It will support goods and equipment, works, consulting and advisory services, training and capacity building for cooperatives and smallholders, for sustainability, on management and maintenance of infrastructure.
4. Activities under Component I will cover the three regions of Casamance (Ziguinchor, S6dhiou, and Kolda). However, target areas will be prioritized and selected based on the agriculture potential (existence of flood valleys for rice and oyster productions) and the organizational and networking capacity of cooperatives, women and youth groups. With regards to horticulture, based on lessons learned from previous and current projects, this component will
37 assist youth associations, women's groups, cooperatives and households in setting up modem irrigated perimeters of horticulture production with the necessary equipment to significantly increase production and productivity. The interest in horticulture supply and value chains is justified for the following reasons: (i) young men and women are very active in these areas; (ii) possibilities of small agro-industrial processing and transformation units to emerge and contribute to the profitability of the platforms are greater in horticulture production; and (iii) possibilities for generating employment are also important in horticulture. This component will build simple irrigation infrastructure, networks and distribution basins.
5. Activities under Component 1 require the sustained support of women's and youth organizations for the initial preparation of development plans for the valleys, and organization of work. Such support will be provided by specialized NGOs, in conjunction with decentralized services of the Ministries of Agriculture, Water and Environment. Specific technical assistance and training modules will be carried out among group members, with focus on: (i) organization of work; (ii) arrangements for the management and maintenance of structures and infrastructure; (iii) land management; (iv) use and maintenance of equipment and infrastructure; and (v) marketing, processing and preservation of produce, and entrepreneurial skills. The project will provide an operational manual on the management and maintenance of structures and infrastructure. At the start of the project, a beneficiary assessment will be carried out to determine the targets (women's groups, associations, and individuals (ex-combatants)) as well as their demand for capacity building, and the basis for preparation of a training plan. A baseline study will be conducted to monitor progress and impacts at mid-term and at the end of the project.
6. Component I has the following subcomponents: (i) Rehabilitation of rice valleys and horticulture perimeters, and provision of basic post-harvest infrastructure, including small commercial/logistics platforms; (ii) Provision of productive assets in support of production and productivity for rice, horticulture and oysters for farmers; and (iii) Development of the IEPB.
Sub-component 1.1: rehabilitation and development of selected rice valleys and horticulture perimeters, and provision of small scale post-harvest infrastructure (US$8.0 million)
7. This sub-component will finance the necessary investments for the development and or rehabilitation of: (i) flooded and floodable valleys for rice and aquaculture production; and (ii) horticulture perimeters. The selection of valleys such as Sofa Niama, Temento (Kolda), S616ky, Tengory and Suelle (Ziguinchor), M6dina Souan6 (S6dhiou) will be based on specific criteria including areas cleared of landmines, absence of land disputes, existence of youth or women associations, technical feasibility, basic diking facilities (if necessary the dykes will be strengthened by refilling of materials), valleys equipped with salt control dams, and expected impacts.
8. Rehabilitation of rice valleys. The project will target lands that have basic diking facilities but without gate-controlled spillways. The dykes will be strengthened (refilling of materials, fixing with vetiver, etc.) and equipped with control structures. This sub-component will also be implemented in valleys equipped with salt control dams and for which there are available data. The approach is based on extensive consultation with users, including women. These actions will also consist of the construction of intermediate storage and regulatory
38 structures upstream, putting in place small dykes and drainage systems, provision of internal access and crossing structures, and implementation of erosion control systems, including agroforestry activities.
9. The targeted regions are Ziguinchor and S6dhiou, and to a lesser extent the region of Kolda based on the existing potential. Eligible activities include works related to rehabilitation of flooded and floodable valleys, and shallows. This activity will also support the multiplication of rice seed production (base seeds, fertilizers), particularly the drought resistant NERICA variety with assistance from agriculture and research services in order to help reconstitute the seed capital.
10. The productive investments of the component will include soft investments in terms of capacity building of cooperatives and other eligible organizations (youth associations, women groups) as well as households to reinforce their capacities in managing and maintaining investments. Customized technical assistance packages (training and dissemination of new technologies) will be provided to these organizations to enhance management and technical farming skills. Also, advisory services will be provided to members of organizations in preparing and negotiating loans from credit agencies. Overall, in terms of upland rice, the objective of the project is to triple production in the three regions from 81,569 tons in 2013 (reference) to 262,734 tons in 2018 by doubling cropped areas and maintaining a reasonable growth in yield (from 1.6 ton/ha to 3.2 ton/ha in 2018). Additional cropping of land areas will be done not through land clearing, but through rehabilitation and development of existing valleys. Projections are presented in Table 9 below.
Table 9: Projected Yields, Crop Areas and Production in Upland Rice Region Reference (2013) 2014 2015 2016 2017 2018 Expected Rain-fed rice yields (t/ha) Kolda 1.4 1.8 2.2 2.8 2.8 2.8 Sedhiou 1.6 2.0 2.5 3.2 3.2 3.2 Ziguinchor 1.7 2.1 2.6 3.3 3.3 3.3 Total 1.6 2.0 2.5 3.2 3.2 3.2 Projected Rain-fed rice areas (ha) Kolda 8,036 8,840 9,724 10,696 11,766 12,942 Sedhiou 23,219 25,541 28,095 30,905 33,995 37,395 Ziguinchor 20,292 22,322 24,554 27,009 29,710 32,681 Total 51,548 56,702 62,373 68,610 75,471 83,018 Projected upland rice production (t) Kolda 11,306 15,546 21,376 30,097 33,107 36,418 Sedhiou 36,605 50,331 69,206 97,441 107,186 117,904 Ziguinchor 33,658 46,280 63,634 89,597 98,557 108,413 Total 81,569 112,157 154,216 217,136 238,849 262,734
11. Development of horticultureperimeters. Existing data on horticulture is very limited. As an important source of revenues for youth and women, the objective of the project in horticulture is to improve productivity of identified production systems through the support of on-farm
39 investment packages for eligible groups or cooperatives. The target crops are mainly those currently grown in the region including, but not limited to, cassava, sweet potatoes, hot peppers, okra, and tomatoes. By the end of the project, areas cropped in horticulture will be over 5,000 ha in the three regions (see Table 10). In existing farms, the project will upgrade and/or rehabilitate the infrastructure and irrigation systems. With regards to mangoes, bananas, cashew, and citrus fruits, the project will not invest in the production process but in the marketing and logistics aspects via the platforms and information sharing. The target groups are youth cooperatives, associations and women's groups.
Table 10: Projected Crop Areas of Selected Horticulture Products in Casamance (ha) 2013* 2014 2015 2016 2017 2018 Project hypothesis: development by the project of an additional 1000 ha/region, corresponding to a minimum of 100 Zone of project (source DAPS) perimeters of 10 ha of horticulture 100 100 200 300 300 Kolda 665 765 865 1,065 1,365 1,665 Ziguinchor 532 632 732 932 1,232 1,532 Sedhiou 909 1,009 1,109 1,309 1,609 1,909 Casamance 2,106 2,406 2,706 3,306 4,206 5,106 * Baseline crop areas for selected horticulture products (cassava, sweet potatoes, eggplant, okra, tomatoes, and hot pepper).
12. Three training and demonstration farms will be supported and/or contracted out in the regions of Kolda (Pata) and S6dhiou (Diaroum6) and modeled on the Centre de Promotion et d'Action Sociale (CPAS) of Diemb6ring in the region of Ziguinchor. The project will train a cohort of youth who in turn will develop their own farms. These farms will be in the order of 10 ha and will have minimum facilities to host trainees. These two farms will be equipped with a bore hole and immersed pumping for drip irrigation. They will be owned and managed by youth associations who will undertake production activities in addition to the training. Depending on the potential in a given zone, horticultural production will be targeted alone or in association with other products such as rice. Such a strategy will allow the planning of the activities of the project and the selection of service providers over time according to the speed of setting up the farms to avoid training youth without putting them in the production process and thus risk discouragement. The training will highlight the technical aspect (production techniques, hygiene improvement, processing knowledge) and the managerial aspect (farm management, cooperative management, marketing, quality control, and supply chain management). The trainings may be contracted out to NGOs or private sector entities to implement annual training plans. Training centers will develop structured training methods, and attract funding from NGOs and other institutions.
40 Sub-component 1.2: provision of assets to enhance the production of rice, horticulture and oysters, and to increase the productivity of the rice, horticulture oysters sub-sectors (US$7.0 million out of which IDA finances US$5.0 million)
13. This sub-component will support the purchase of a package of equipment and inputs based on an assessment identifying targeted members of eligible cooperatives, women's groups and youth associations. The packages will comprise: agricultural production inputs (seeds, fertilizers), and equipment (power tillers, threshers, seeders, mills, etc.) for initial distribution on a grant basis to the group. Then the inputs are sold to members and non-members and the equipment is used on fee basis to enhance labor productivity in low and upland rice cultivation and processing. The optimal package will be determined based on a business plan to be prepared by the project. The package is an income-generating operation for the group managing it. The generated revenues are used for buying more inputs and replacing or improving equipment. This support will cover at least the set objectives in terms of hectares determined in sub-component 1.1. The package will be determined according to the level of organization of the targeted women's group or youth association. Other eligibility criteria will be set in the PIM where the process, conditions and eligibility criteria to access support will be defined. The equipment will be procured through procedures set out in Annex 5.
14. Oyster farms. With regards to oyster value chains, given past experiences and recent investment trends in Casamance, the region has strengths in the development of certain forms of aquaculture, particularly in oysters and tilapia. Thus, the project will focus its pilot activities on oyster production. The estimated potential production is 600 tons per year in Casamance. Currently, the way the activity is practiced is not efficient as women harvest raw oysters from the mangrove trees and dry them before selling them. Five kilograms of raw oysters yield 1 kilogram of dried oysters which is sold at US$6; meanwhile, the kilogram of raw oysters is sold at US$15-20. Oyster culture is not demanding in terms of space, it is practiced on pouches, rafts and benches. In addition, there are no costs for feeds, and energy and water in oyster culture are nonexistent (oysters feed themselves naturally by water filtration and it is not necessary to have an energy pumping system to renew water). Therefore, it makes sense for the project to promote oyster culture. CrassostreaGasar, the species cultivated in Senegal is endogenous and resistant to diseases. Its breeding has been mastered and practiced in the country for half a century in Joal-Fadiouth, Saloum, and Casamance.
15. Piloting improvements in this activity will require minimum investments: spat of oysters, wooden tables and canoe for harvesting oysters, sterilizers, improved packaging, and a common packaging room. The concentration of spat of oysters makes it easier to collect them on tiles or natural mangrove roots. In Casamance, the availability of water in large quantities and space near small dams, and in flooded valleys will allow to mix the water in order to obtain the optimal conditions to grow the oyster. This will be an important source of revenue for women, as hotels and restaurants in transit areas will be their potential markets. The project will promote on a pilot basis three oyster farms in Ziguinchor and one disgorging facility where oysters are drained and washed before sale. Before starting these activities, the project will conduct a study of the market.
41 Sub-component 1.3: provision of small scale post-harvest infrastructure, including collection points for agricultural produce (US$2.0 million)
16. Basic small post-harvest infrastructure. The objective of this activity is to promote economic activities and employment through selected agricultural value-chains. One challenge for sustainable development of agriculture in Casamance is the capture of the value added of local production, through the promotion of activities and techniques in improved processing and packaging, including fruit (mango, cashew) and grain (rice, millet, fonio). Achievement of the objective will lead to a better structuring of the value chains, an enhancement of business opportunities for local products and a neutralization of the crowding out effects of the market due to production losses by decay or lack of quality and attractiveness. Value-added products from processing activities supported by the project will include: syrups, fruit juices, jams, jellies, dried fruit, vinegar, and processed grains. The support will consist of building, developing, and equipping the logistic platform and post-harvest infrastructure (storage, area trucks, cold rooms, and small processing units). These small platforms will be managed by women's and youth groups. They will constitute a commercial wholesale exchange zone and a zone for the establishment of cooperatives (processing, transformation, small agro-industrial units) and other micro-enterprises (mechanic workshops, small industrial units, restaurants, shops). The development of these platforms will also facilitate rural-urban connections and exchanges within the zone. Finally, empowering Casamance as an agricultural trading hub creates alternatives to illegal activities such as drug and weapons trafficking.
17. The creation of small multi-sector platforms with adequate infrastructure and equipment will play an important role in the stimulation and enhancement of the economic potential of the primary and tertiary sectors in Casamance, in the supply of important regional and sub-regional urban centers in perishable and non-perishable, and in the improvement of the competitiveness of Casamance products. The platforms will be built to develop the capacity for collecting, handling, processing, and transporting local produce from rural communities.
18. Access to financing is one of the major constraints in agriculture value chain development in Casamance, in terms of covering working capital needs, funding packaging and other inputs, as well as financing investments in heavy and light equipment. The project does not intend to inject funding in this activity, but rather promote an innovative, sustainable financing partnership coupled with a tri-partite contractual arrangement customer-supplier-lender as shown in Figure 3 with the advantage of simultaneously mitigating risks of defect in contract execution and non-payments and guaranteeing deliveries based on specified quality standards. In this context, the project will support women and youth entrepreneurs to access financial institutions, prepare business proposals and assist them in the required paperwork in order to reinforce the collaboration between small businesses and financial institutions (formal and microfinance institutions), including those active in the IEPB.
Sub-component 1.4: improvement of market access through the development and operation of the Integrated Economic Platform of Bignona (IEPB) (US$7.0 million)
19. The department of Bignona with an estimated population of 318,478 people (45 percent of the total population of the region) covers 72 percent of the region of Ziguinchor (or 5,266 square kilometers). Bignona is located 50 kilometers from Ziguinchor. It is anticipated that these
42 two cities will be fully connected in the future because of rapid urbanization. As of today, the city of Bignona has a population of 25,000. Its unique location has the advantage of proximity not only to the Gambia ferry on the Kaolack-Ziguinchor road, but also to Banjul via Diouloulou. As a rural hub in terms of agricultural production (rice, horticulture) and a trading center of agricultural products (cashew, mango, wild fruits, sweet potatoes, cassava,), the city of Bignona plays a key role in agriculture trade, but it faces severe constraints of value chains, logistics and marketing. The area is characterized by rich agricultural forestry resources that are underdeveloped due to weak values chains, severe constraints in logistics, and marketing of agricultural products which result in losses estimated at 25,000 to 50,000 tons per year.
20. These constraints triggered the idea of the platform, initiated by the municipality of Bignona in 2008. With the support of different partners such as the Senegal Agricultural Markets Development Program (PDMAS), National Local Development Program (PNDL), French cooperation, and the Economic Agency of Savoie (France), the municipality secured three hectares of land in order to set up a multi-purpose platform based on the needs of producers, traders, and transporters who basically wanted a logistics outlet for accessing products and a parking and loading/unloading area. Under the leadership of the Mayor of Bignona and the active participation of women's groups, the project of the platform evolved into a second phase structured around access to markets of raw agricultural products, but also their transformation in diversified value-added products to trade into modem marketing and distribution networks. Preliminary consultations indicate that 22 Economic Interests Groups (GIE) and 15 cooperatives have expressed interest in the services to be offered by the platform.
21. The concept of the IEPB is already being initiated by different partners including the PDMAS, funded by the World Bank. This project will complete the development of the platform, link it to production and open up space for women and youth groups to participate and benefit from it (Figure 2). It is a critical initiative for Bignona as it has the right characteristics (production center and epicenter of the conflict). The department of Bignona exports 50,000 tons of horticulture products (citrus fruits, mangoes, cashew, wild fruits, bananas, cassava, and sweet potatoes) to the rest of Senegal and the sub-region. It is estimated that at least 50 percent of this volume will be handled through the platform in its first year of operation.
22. The IEPB will promote economic activities and employment through selected value- chains in agriculture and aquaculture. One of the challenges for sustainable development of agriculture and commercial agriculture in Casamance is a better capture of the value added of local production, through the promotion of activities and techniques in improved processing and packaging, including fruits and grains. Achievement of the objective will lead to a better structuring of the value chain, enhancement of business opportunities for local products and a reduction in production losses due to decay or poor quality and attractiveness. Value-added products from processing activities supported by the project will include: syrups, fruit juices, jams, jellies, dried fruit, vinegar, and processed grains.
23. The area hosting the IEPB covers three hectares and is located in the vicinity of Escale or business center of the city. The platform will contribute to mitigate constraints facing micro- enterprises (the majority are women's groups) such as lack of organization, difficulties in accessing larger markets, weak management capacities, limited access to financing, and limited
43 access to modern technologies. The IEPB is a national experiment and, as such, its success is based on the following characteristics:
44 Figure 2: Business relations (delivery of agriculture product)
Facilitation
Advice 4c Information
Cooperatives Proucrs Processing Units Business relations (order forms)
45 It is a platform specialized in the processing of agriculture and forest products of Casamance. > The platform is based on a public-private partnership with public investment guided by a commitment to stimulate private operators in agriculture value chains. However, the management of the platform will be private in order to establish procedures based on results, financial viability and sustainable private investments. > A productive community infrastructure to incubate women's groups and other small private enterprises around a cluster of high value added products of improved market value. > A generation of value added products that meet the standards and norms of intrinsic quality, packaging and marketing in order to satisfy local, national, regional and international markets of various categories of clientele. > Criteria for selecting and targeting clusters of incubated women's groups or small private enterprises. > Contractual arrangements between operators and the professionalization of business relationships between operators of the platform, including providers of support services (transport, financial services). > A pilot multimarque community shop as a showcase of Casamance products.
24. The development of the IEPB will be structured around functional zones as shown in Figure 3:
> A showroom/grocery and a bar for natural juices integrated to the IEPB which is a pilot shop to serve as a reference to the network of franchised boutiques origine Casamance to be developed by the private sector. The show room will serve as a space for the marketing of products of the IEPB and other processing units in Casamance. The show room will be integrated in tours in partnership with tour operators. Ultimately, this activity will promote private initiatives of young businessmen and women for the creation of specialized boutiques of agriculture/fisheries processed products and/or artisanal products beyond the target products. If successful, similar show rooms may be developed in Kolda, Ziguinchor and S6dhiou. > Integration in a network of local, national, regional and international distribution system will be sought. The component will support the marketing of origine Casamance products promoted by the project in modern distribution systems. The component will support private initiatives of young business men and women for the creation of specialized boutiques of agriculture/fisheries processed products and/or artisanal products beyond the target products and promote e-trade, development and management of franchising and commercial partnerships. > The project will support marketing promotion activities and development of concepts of stand for fairs. > Women's groups active in the processing of products are of two types: those operating in modem processing units and those operating at home. Given the limited space of the platform of Bignona and its piloting character, the IEPB aims to incubate the first category in order to reinforce their experience in modem processing units and the quality of their products to secure authorizations to sell in modem markets.
46 Board Private/Public
Figure 3: Organization Chart of the Platform | ManaFe)iment contract
Private Operator
Operations 1
Community economic Platform Bignona
1Infrastructure
Community Transformation Show room + natural Business Center, Parking Area for trucks Platform + m rcus ie sC ne Laboratories + Cold juice Barntr conference room ! Shwj storage mmmmmm mm m m m m m m m m m m m m m m m m m m
Outside the Platform
Market access Community Units Modern Trade ModernTradetransformation Ziguinchor- Kolda - Sedhiou
47 25. Component 2: Rural Accessibility (US$15.0 million, out of which IDA finances US$13.0 million). Carrying-out of a program aiming at improving accessibility of the most isolated rural communities and improving said communities' access to roads leading to local markets and agricultural production zones, through: (i) improvement of the poorest rural communities (CRs) road access, through spot improvements on about 350 km of unclassified roads linking rural communities with districts and urban centers (US$3.5 million); (ii) rehabilitation and maintenance of about 200 km of selected rural roads to increase access to commercial infrastructure and zones with high agricultural potential (US$10.2 million, out of which IDA finances US$8.2 million); (iii) Implementation of a rural roads maintenance pilot project through labor intensive methods (US$500,000); and (iv) Strengthening of the capacity of the staff and contributors of the ARDs, and of rural communities in the area of general contracting and the maintenance of rural roads (US$800,000).
26. Interventions of the rural accessibility component are essential to improve the collection of agricultural commodities, as well as provide access to marketing infrastructure and to areas with high potential for increased agricultural production. Beneficiaries of the rural accessibility component are rural road users and the rural population of targeted areas. Benefits expected from extended basic road access include enhanced access to markets, health, education and information, improved year-round connectivity and lower transport costs. The project will also benefit small-scale private contractors and provide employment opportunities for local populations, especially youth and women.
27. Component 2 will be implemented in close collaboration with the Directorate of Roads which is responsible for the consistency and overall quality of all road infrastructure projects and programs in Senegal. The Directorate is also responsible for the coordination and implementation of the National Strategy for Rural Transport (SNTR), and as such, it will ensure the consistency of Component 2 with the objectives of the SNTR.
Sub-component 2.1: improvement of the poorest rural communities (CRs) road access, through spot improvements on about 350 km of unclassified roads linking rural communities with districts and urban centers (US$3.5 million)
28. This sub-component will finance the improvement of about 350 km of unclassified roads linking villages to their district centers or to the classified network. It includes the technical studies and the supervision of works.
29. The priority network to be improved will be in the S6dhiou region where all-weather access is most critical compared to the other two regions of Casamance (Figure 4). The specific rural links to be improved will be selected using a targeting approach based on several criteria, including poverty and access to markets and basic social services. It is expected that the identified links exceed the allocated length; hence, candidate links will be prioritized using cost- effectiveness indicators.
8 The total extent of the unclassified network is fully known, but its serviced portion is estimated to be around 6,000 km. The maintenance of the classified network is provided by AGEROUTE while that of the unclassified network is the responsibility of local authorities which are currently inadequately resourced.
48 30. For works under subcomponent 2.1, selected CRs will be involved in the planning and implementation of works at a level commensurate with their capacity. While acknowledging that their participation is currently strongly limited by capacity constraints, the project will promote a greater but gradual participation of CRs in road maintenance planning, management, and supervision. CRs will benefit from technical assistance and capacity building from the ARDs which in turn will rely on AGEROUTE and other decentralized technical services as needed. ARDs will be responsible for the procurement of works in accordance with the National Procurement Code and the World Bank Guidelines.
Figure 4: Percentage of Population with Access to a Lateritic Road by Region
*Source: ANA T/ANSD 2009.
S
LOU6A 61 -1CO %
flhIANDAVOUAVA
ANAT JANSD2OD)
Sub-component 2.2: Rehabilitation and maintenance of about 200 km of selected rural roads to increase access to commercial infrastructure and zones with high agricultural potential (US$10.2 million, out of which IDA finances US$8.2 million)
31. This sub-component will finance the rehabilitation and/or periodic maintenance of about 200 km of classified rural roads in Ziguinchor and Kolda, including the technical studies and the supervision of works.
32. The selection criteria for the final inclusion of rural roads to be rehabilitated were: (i) the level of traffic; (ii) the agriculture potential of the influence area of the road; (iii) the existence of
49 markets or planned commercial infrastructure such as the platform of Bignona; (iv) the level of access to public social services; (v) the population served by candidate links; and (vi) the economic internal rate of return of candidate links.
Table 11: Rehabilitation/Periodic Maintenance Program Region CRs Origin - Destination Length (km) Diegoune/Balingore Diegoune - Balingore 8 Mangagoulack Affiniam - Diatock 17 Suelle Baila - Suelle 10 Ziguinchor Sindian/Djibidione Sindian - Djibidione 16
Oulampane/Sindian/Suelle Mampalago - Sindian - 35 Balandine Suelle/Djibidione Balandine - Djibidione 8 Medina Yoro Foulah Kolda - Pata 66 Kolda Thiawfara - Pakour - Pakour/Paroumba/Ouassadou ParoumbaPaoma40 Total 200
33. ARDs will be fully responsible for the works under subcomponent 2.2 under close coordination with the local communities. ARDs will be assisted by AGEROUTE on the basis of an implementation agreement which will also include the assistance provided under subcomponent 2.1.
Sub-component 2.3: Implementation of a rural roads maintenance pilot project through labor intensive methods (US$500,000)
34. The project will finance the labor-based permanent routine maintenance of rural roads for one year in the three regions on a pilot basis. Candidate links to be identified during project implementation could be roads rehabilitated/improved under Component 2, as well as a few other pilot roads. They will have to be in maintainable condition with a fairly good road surface structure. Works will be performed by either individual length workers or small groups of workers who will benefit from capacity building under subcomponent 2.4. The participation of youth and women will be strongly promoted.
Sub-component 2.4: Strengthening of the capacity of the staff and contributors of the ARDs, and of rural communities in the area of general contracting and the maintenance of rural roads (US$800,000)
35. This subcomponent aims to strengthen (i) basic institutional and technical capacity of CRs to assume responsibilities for rural road maintenance, and (ii) technical capacity of ARDZ, ARDS, and ARDK to enable them to provide technical assistance to CRs in the planning,
50 implementation and supervision of routine maintenance. It will include, inter alia, the following activities:
> Raising awareness of local communities on the importance and benefits of planned, preventive maintenance of rural roads. > Consultative processes for the development of inter-community cooperation for maintenance of important roads that serve several CRs. > Training of trainers for ARD staff in project planning, coordination and supervision of rural roads including environmental and social assessments, gender aspects, etc. > Methods of organizing and implementing labor-based routine and recurrent road maintenance, including contracting with individuals for routine maintenance of one to two kilometers of road (length-man system); and contracting with a group of poor people to carry out the routine maintenance of a road. > Technical aspects of preventive maintenance work using labor-based methods and dissemination of educational tools. > Training to CRs in the planning, implementation, and supervision of road maintenance. > Assistance to CRs in assembling their maintenance proposals in view of eligibility9 to access funds from the Autonomous Road Maintenance Fund (FERA). > Trainings to local communities, in particular women and youth groups in selected CRs, in the area of routine maintenance and basic road engineering skills in order to enable them to undertake routine maintenance works under the pilot initiative (cf. subcomponent 2.1) and also to promote their involvement in future routine maintenance works.
36. Trainings will either be delivered by the Directorate of Roads or through the use of experienced consultants. Also, the project will establish a collaboration framework with FERA in support of technical assistance activities.
37. Component 3: Project implementation and capacity building in DDR (US$7.0 million, out of which IDA finances US$5.0 million). This component includes four sub- components: (i) Strengthening the capacity of key stakeholders, including the Agence Nationale pour la Relance des Activites Economiques et Sociales en Casamance (ANRAC) through consolidation of peace building processes and the fundamentals of DDR for ex-combatants (US$600,000). In the event of an agreed formal DDR process, the project will look to other donors to support implementation. This activity will be implemented alongside the recently approved State and Peace-building Fund (PCF) grant which aims at supporting peace building initiatives of rural communities in Casamance; (ii) Carrying-out of three strategic studies on: (i) developing a cadastral plan; (ii) developing a geo-reference map of interventions in Casamance; and (iii) support to the government in the definition and implementation of a strategy on poles development, which integrates a fiscal framework. These studies will involve wide participatory consultations with stakeholders; (iii) Support to project management, results monitoring and
9 Starting in 2014, Autonomous Road Maintenance Fund (FERA) will annually allocate 16.56 percent of its resources to the unclassified network, out of which 35 percent will go to the maintenance of the unclassified earth road network. While all local authorities nationwide are eligible for these resources, the annual allocations will be made on the basis of fiscal management performance of the CRs.
51 evaluation (M&E), detailed in Section IV (US$3.8 million); and (iv) Construction of office facilities for the ARDs and provision of related office equipment (US$2.0 million, financed by the GoS).
38. Indicators of performance include: (i) reports; and (ii) number of staff trained.
52 Annex 3: Implementation Arrangements Senegal: Casamance Development Pole Project
1. At the national level, a Project Steering Committee (PSC) chaired by a Representative of the President of the Republic will provide overall orientation to the project. The PSC has been established by presidential decree No. 008848, dated June 12, 2013. A provision will be allocated in the budget as part of the project coordination to support the operating costs of the PSC (meetings and travel).
2. The PIM will be prepared before project effectiveness. It will detail organizational and technical procedures that will govern project implementation and the roles and responsibilities of the Coordinator and the ARDs. It will include an administrative and financial management manual for fiduciary purposes (financial management and procurement).
3. The PSC will ensure overall performance oversight and strategic guidance. It will approve the project's Annual Work Plan Budget prepared by the Coordination Office (CO) and, if appropriate, suggest adjustments based on M&E results and progress status reports. The PSC will provide guidance on project implementation, and resolve any policy or strategic issue that may arise. The PSC will ensure that project activities are implemented in accordance with national and strategic orientation, procedures, and coordinated where appropriate with other departments, development programs and projects. The PSC will meet twice a year. Extraordinary meetings could be called by the Chair as required.
4. The PSC is chaired by a Representative of the President of the Republic and comprises representatives of inter alia: (i) the Prime Minister's Office; (ii) the Ministry of Regional Development and Local Government; (iii) Parliament; (iv) the presidents of the Regional Councils of Ziguinchor, S6dhiou, and Kolda; (v) the Ministry in charge of infrastructure and transport; (vi) Ministry of Agriculture; (vii) Ministry of Interior (viii) the Ministry in charge of commerce; (ix) the private sector; (x) civil society; and (xi) the Environmental and Social Council. The composition of the PSC will be outlined in the PIM. The CO will ensure the secretariat of the PSC. The CO is established to monitor and analyze project implementation and performance on behalf of the PSC. The Coordinator will be responsible for: overall fiduciary management, coordination with donors and sector departments, reviewing physical and financial progress, analyzing reports from implementation agencies and summarizing them for the PSC and the Bank's implementation support missions. The CO will hold quarterly meetings with implementation agencies at the regional level. The CO is a small team headed by a Coordinator and composed of an M&E specialist, and a Financial Management Officer, as professional staff.
Specific Implementation Arrangements
5. At the regional level, Components 1 and 2 will be implemented by the ARDs of Ziguinchor, Kolda, and S6dhiou. ARDs have an official status of public local agencies with administrative and financial autonomy, as established in Law No. 96-06 of March 22, 1996, creating the Local Government Code (Article 37). Their mandate is the overall coordination and harmonization of interventions and initiatives by local governments. Decree No. 2008-517 of May 20, 2008 provides updated procedures for the organization and operations of these agencies. They operate under the technical oversight of the Ministry of Local Government and Regional
53 Development and under the financial supervision of the Ministry of Finance. Their staff is competitively recruited based on the 2008 reform of ARDs implemented in the context of the Bank-supported PLDP project. Each ARD is led by a Director who is competitively selected, and it typically comprises five departments: Training and Planning, Local Economic Development, Infrastructure, Monitoring and Evaluation, and Administrative and Financial, each under the direction of a full-time staff with an open-ended contract. ARDs are increasingly serving as implementation units for many donors, including the World Bank. Components 1 and 2 will be implemented in close coordination with municipalities (rural communities and communes) and the decentralized offices of the Ministry of Agriculture.
6. The respective legal obligations of the Borrower and the ARDs for this project will be detailed in the Financing Agreement (FA) to be signed between IDA and GoS and also in the Subsidiary Agreement to be signed between the CO and each ARD.
7. In order to strengthen expertise available to the ARDs, the following consultants have already been recruited under the project: a Senior Agriculture Value Chain Expert, and a Senior Procurement Specialist. Three procurement assistants, and a Junior Private Sector and Finance Specialist will be recruited to provide additional support to the ARDs. These experts will be placed in the three ARDs and will allocate their time for the entire project activities.
8. Distribution of Agriculturalpackages under subcomponent 1.2. ARDs are responsible for: (i) the definition of optimal agricultural packages on the basis of a needs assessment for each rice valley and horticulture perimeter; (ii) the appraisal and approval of each agricultural package on the basis of eligibility criteria defined in the PIM; (iii) the monitoring of the distribution of agricultural packages; and (iv) the monitoring of the utilization of the packages as per the criteria defined in the PIM. Audits to ensure that packages are distributed and utilized as per the criteria defined in the PIM will be conducted.
9. Component 2 will also be implemented by ARDs, but in close coordination with the CRs (cf. paragraph 7) and with the support of the regional office of AGEROUTE (Agency in charge of roads management). There will be an implementation agreement between the project and AGEROUTE to be signed four months after project effectiveness, for the rural roads component. Under the agreement, AGEROUTE is expected to provide technical assistance to the three ARDs in the quality control of technical documents (studies, reports, etc.) and the supervision of works.
10. Component 3 will be implemented by the CO. ANRAC and other local stakeholders (NGOs, Community-Based Organizations, local authorities, etc.) will be the beneficiaries of trainings in the area of DDR and peace building under subcomponent 3.1.
54 Project Steering Committee (PSC)
Figure 5: Organization Chart Coordinator
Financial Sr. M&E Management Sc. Officer (FMIO) Seils
RegionalLevel ARD 6ho DARD Kolda ARD Ziguinchor . - Director SEngineerier -M &E -Engineer -Engineer -contnM& E - M&E - Accountant - Accountant - Capacity Building Capacity- Capacity Building
------~~------Consultants support to ARDs - Procurement Specialist - Value Chain Specialist - Junior Private Sector Development Specialist - Procurement Assistants Financial Management Arrangements
11. The following are the financial management arrangements.
Budgeting
12. The budget process (preparation, approval, monitoring) will be critical due to the number of implementing agencies (ARDZ, ARDK, and ARDS). In order to define the roles and responsibilities of each stakeholder, the budgeting process will be clearly defined in the Financial Management Procedures Manual. The following rules will apply and be monitored: (i) each Annual Work Plan and Budget will be adopted by the PSC before the beginning of the year; and (ii) draft Annual Work Plan and Budget will be submitted for the Bank's non-objection before adoption and implementation.
Internal Control Systems
13. The CO is being set upl and the FM Procedures are not yet designed. Before project effectiveness, the FM Procedures will be designed to document the roles and responsibilities of all stakeholders, at the national and regional level. The FM procedures will cover the budget process, internal control measures (segregation of duties, authorization and supervision of activities, accounting rules and procedures, flow of funds, financial reporting) and external procedures.
14. The project will be implemented through several entities and will be decentralized in three regions. In order to ensure the adequacy of internal control systems with the project activities and organization, the CO will perform ex-post reviews of activities. To ensure strict independence of the ex-post reviews, the PSC will recruit an Internal Auditor as a short term consultant. The terms of reference of the Internal Auditor were discussed and agreed before Negotiations.
Accounting
15. Standards. The current accounting standards in use in Senegal for on-going Bank- financed projects will be applicable. SYSCOHADA is the assigned accounting system in West African Francophone countries. Ten Project accounts will be maintained on a cash basis, supported with appropriate records and procedures to track commitments and to safeguard assets. Annual financial statements will be prepared by the CO in accordance with the SYSCOHADA.
16. Staff At the National level, an FM Officer has been recruited on conditions satisfactory to IDA. At the regional level, the Agents Comptables Particuliers(ACP) of the three ARDs will be in charge of FM activities. The ACPs are sworn accountants.
17. Software. The project will set up a computerized financial and accounting system in the CO (national level), ARDZ, ARDS and ARDK (regional level) able to ensure the automatic
10 Recruitment of personnel is underway.
56 consolidation of accounting and financial information, and producing the required financial reporting. This shall be effective no later than two months after project effectiveness.
Disbursement and Funds Flow
18. Disbursement Methods and Designated Account. The project will use the transaction- based disbursement procedures, i.e., replenishment, direct payment, reimbursement, and special commitments. The project will open one Designated Account (DA) in a commercial Bank acceptable to IDA. The DA will be held in CFA and will be managed by the CO in conjunction with the Direction des Investissements (DI) of the Ministry of Economy and Finance, according to the disbursement procedures described in the FM procedures and the Disbursement Letter which were discussed in detail with the relevant government officials during Negotiations. The DA ceiling is indicated in the Disbursement Letter as agreed upon during Negotiations.
19. Account for ARDs and replenishment applications. For the sole purpose of the project, each ARD will open and manage an account in a commercial bank acceptable to IDA. The DA will be replenished through the submission of withdrawal applications on a monthly basis by the Coordinator through the DI and will include reconciled bank statements and other documents as may be required.
20. The funds flow arrangements are schematized in the figure below.
Figure 6: Funds Flow Arrangements
IDA Washington 4------I
Government DI
A I Designated Account
Regional Level ARDZ. ARDK. ARDS
Suppliers
Direct payments
- * Transfer of Funds o -----Transmission of documents (report invoice, Withdrawal application audit report IFR, evidence of direct payment etc.).
57 21. The following table specifies the categories of Eligible Expenditures that may be financed out of the proceeds of the Financing ("Category"), the allocations of the amounts of the Financing to each Category, and the percentage of expenditures to be financed for Eligible Expenditures in each Category:
Table 12: Categories of Eligible Expenditures
Percentage of Amount of the Credit epentre ob Category Allocated (expressed in Fianed SDR) Financed (inclusive of taxes) (1) Goods, Works except for works under part C.4 of the Project, Non- consulting services, Operating Costs, 25,400,000 100% Training, Workshops and Study Tours and Consultants' services for the Project (2) Refund of Preparation Advance Amount payable pursuant to Section 2.07 of the General Conditions of the FA TOTAL AMOUNT 26,500,000 100%
Financial Reporting
22. Interim financial reporting. The CO will produce quarterly unaudited IFRs for the DA and the related project. The IFRs will be produced on a quarterly basis and submitted to the Bank within 45 days after the end of the calendar quarterly period. The Borrower agreed with the Bank on the format of the IFRs during Negotiations.
23. Annual financing reporting. The CO will also produce the project's Annual Financial Statements which will comply with SYSCOHADA and World Bank requirements. These Financial Statements will comprise: (i) a Statement of Sources and Uses of Funds which recognizes all cash receipts, cash payments and cash balances; (ii) a Statement of Commitments; (iii) Accounting Policies Adopted and Explanatory Notes; and (iv) a Management Assertion that project funds have been expended for the intended purposes as specified in the relevant financing agreements.
External Auditing
24. The Financial Statements for the project will be audited annually by an external auditor with qualification and experience satisfactory to the Bank. These audited statements will be submitted to the Bank within six months after closure of the fiscal year. A single opinion on the Audited Project Financial Statements in compliance with International Federation of Accountant (IFAC) will be required. The external auditors will prepare a Management Letter providing observations and comments, and recommendations for improvements in accounting records, systems, controls and compliance with financial covenants in the Financial Agreement.
58 Table 13: Summary of Auditing Requirements Audit Report Due Date Annual audited financial statements and Management Letter for the Within six months after the project (including reconciliation of the Designated Accounts with end of each fiscal/financial appropriate notes and disclosures) year
Table 14: Financial Management Action Plan Action Date due by Responsible 1 Internal Control Prepare and adopt the Financial By effectiveness ARDZ Management Procedures 2 Internal Control Prepare and agree with IDA the Completed ARDZ ToRs for the recruitment of an Internal Auditor on a part time basis Recruit and Internal Auditor on a Not later than part time basis four months CO after effectiveness 3 Accounting Draft the ToRs for a Completed computerized financial and accounting system Set up a computerized financial No later than CO and accounting system in the two (2) months ARDZ, CO, ARDZ, ARDS, and ARDK after ARDS, effectiveness ARDK Recruit an FM Officer under Completed CO terms of reference acceptable to ARDZ, the Bank ARDS, ARDK Train the Agents Comptables No later than CO Particuliers(Accountants) of the four months ARDZ, ARD in IDA FM and after ARDS, disbursement procedures effectiveness ARDK 4 Financial Prepare and agree with the Bank Completed ARDZ Reporting on the format of the IFRs 5 External Audit Draft the ToRs for external Completed ARDZ financial audits of the project Selection of the external auditor No later than of the project four months after CO effectiveness
59 Procurement
25. Procurement for the proposed project will be carried out in accordance with the World Bank's "Guidelines: Procurement of Goods, Works, and Non-Consulting Services under IBRD Loans and IDA Credits & Grants by World Bank Borrowers", dated January 2011; and "Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits & Grants by World Bank Borrowers ", dated January 2011, and the provisions stipulated in the Financing Agreement. The general descriptions of various items under different expenditure categories are presented below. For each contract to be financed by the Credit, the procurement method or consultant selection method, the need for prequalification, the estimated cost, the prior review requirements, and the timeframe are agreed between the Recipient and the Association's project team in the Procurement Plan. The Procurement Plan will be updated at least annually or as required to reflect the actual project implementation needs and improvements in institutional capacity.
26. National Procurement System and Procurement Reforms. GoS substantially improved the country's public procurement system to comply with the West African Economic and Monetary Union's (WAEMU) Procurement Guidelines and international standards including: (i) setting up an Independent Regulatory Body and a Procurement Control Department; (ii) setting up an Electronic System for collecting, disseminating, managing procurement information and monitoring procurement statistics and procurement complaints; and (iii) preparing a set of national standard bidding documents on the basis of IDA's standard bidding documents (SBDs). In general, Senegal's procurement laws and regulations do not conflict with IDA's Guidelines on Procurement; IDA procedures take precedence over these laws and regulations.
27. National Competitive Bidding (NCB) procedures may be used for work contracts with a cost estimate less than US$10,000,000 and for goods contracts less than US$1,000,000. The procedures may be those described in the national public procurement code under its Section 2 - Appel d'offres ouvert included in Chapter 4 of the Title III of the Procurement Code.
28. Some provisions of this law are not consistent with the World Bank's Procurement Guidelines: (i) the procurement of fuel for vehicles for the public administration (provisions 3.4c(i) of the public procurement code) and the procurement of hotel services (provisions 3.4c(iii) of the code) may not be submitted to the code and may not be done with transparency and equity; (ii) domestic preference may be used in NCB, and bidders from any WAEMU country may be eligible for domestic preference (provision 50 of the code) instead of national bidders only; (iii) possible restrictions excluding foreign bidders' participation in direct contracting for operations financed under the National Budget (provision 52 of the code); (iv) the general procurement notice (GPN) is prepared for each fiscal year instead of the duration of the project, and its publication as well as that of all ICB procurement notices on the United Nations Development Business (UNDB) portal is not clearly mentioned as mandatory (provision 56 of the Senegal Code of public procurement); (v) paragraphs 2(b) and 2(c) of provision 76 related to direct contracting in the context of emergency refers to possible involvement of political authorities, which could lead to political interference in the procurement process; and (vi) provision 108 related to quality control, allowing possible price reduction in case the goods, works or service delivered are not fully compliant with the specifications/description/terms of reference inserted in the contract are considered as weaknesses in the procurement regulation. In
60 particular, the provisions related to: (i) the procurement of fuel and hotel services; (ii) the possible involvement of political authorities in direct contracting for imperious emrgencies; and (iii) the quality control and possible price reduction, have been raised by IDA and discussed with the authorities for improvement.
29. For the above referred procurement method designated as Appel d'Offres Ouvert to be acceptable to IDA and used for NCB, the following special requirements will need to be followed: (i) bids shall be advertised in national newspapers with wide circulation; (ii) bid evaluation, bidder qualification and award criteria shall be specified clearly in the bidding documents; (iii) bidders shall be given an adequate response time (minimum four weeks following the date of the invitation to bid or the date of availability of the bidding documents, whichever is later) to prepare and submit bids; (iv) bids shall be awarded to the lowest evaluated bidder; (v) eligible bidders, including foreign bidders, shall not be precluded from participating; and (vi) no preference margin shall be granted to domestic contractors.
30. In addition, the following other dispositions should be applied for contracts financed under the project, irrespective of the procurement method: (i) the GPN will cover the whole duration of the project execution with the possibility to be updated when needed, and the GPN as well as all ICB procurement notices will be advertised in UNDB in addition to national newspapers with wide circulation; (ii) in addition to not using the preference margin in case of NCB, if a preference margin is used in any ICB contract, it will be applied in accordance with the World Bank Procurement Guidelines; and (iii) the following provisions of the national procurement code will not apply: (a) 3.4c(i) related to the procurement of fuel for vehicles for the public administration, and 3.4c(iii) referring to the procurement of hotel services; if such goods and services need to be procured reference will be done to the relevant methods described in the Procurement Guidelines; (b) 52 containing the possibility of excluding foreign bidders' participation in direct contracting; (c) 76 2(b) and 2(c) involving political decisions in the use of direct contracting in the context of emergency; and (d) 108 related to quality control and possible price reduction.
31. Furthermore, in accordance with paragraph 1.16(e) of Bank's Procurement Guidelines, each bidding document and contract financed out of the proceeds of the project shall provide that: (i) the bidders, suppliers, contractors and subcontractors shall permit IDA, at its request, to inspect their accounts and records relating to the bid submission and performance of the contract, and to have said accounts and records audited by auditors appointed by IDA; and (ii) the deliberate and material violation by the bidder, supplier, contractor or subcontractor of such provision may amount to an obstructive practice as defined in paragraph 1.16(a)(v) of the Procurement Guidelines.
32. Procurement of Works. Works to be procured under this project would include: development and/or rehabilitation of flooded and floodable valleys for rice and aquaculture production mainly in the regions of Ziguinchor and S6dhiou, and to a lesser extent in the region of Kolda; development of irrigated perimeters for horticulture production with the necessary equipment; building infrastructure for multi-sector platforms to provide needs of value-chain facilities.
61 33. The procurement will be done using International Competitive Bidding (ICB). However, other methods may be used when the related works meet requirements spelled out in the corresponding paragraph of the Procurement Guidelines for such procedures, i.e., NCB as per paragraphs 3.3 and 3.4; shopping as per paragraph 3.5; and direct contracting as per paragraphs 3.7 and 3.8.
34. Procurement of Goods. Goods to be procured under this project would include: agriculture inputs (such as fertilizer and base seed, particularly the drought resistant NERICA variety) and machinery (such as power tillers, threshers, seeders, and sine-hoes); and equipment and furniture for multi-sector platforms.
35. The procurement will be done using ICB. However, in the case of specific equipment for which the market may be limited, procurement may be done using International Competitive Bidding (ICB). Other methods may be used when the related works meet requirements spelled out in the corresponding paragraph of the Procurement Guidelines for such procedures, i.e., NCB (for example, for goods available locally) as per paragraphs 3.3 and 3.4; shopping as per paragraph 3.5; and direct contracting as per paragraphs 3.7 and 3.8.
36. Procurement of Non-consulting Services. Non-consulting services procured under the project would include general services for project implementation, and services for training and workshops. These services are not expected to be of high value and they will therefore be procured using shopping procedures as per paragraph 3.5 of the Procurement Guidelines.
37. Contracts estimated at less than US$10,000,000 for works and contracts for goods available locally, or non-consulting services with a cost estimate of less than US$1,000,000, may be awarded through NCB procedures. Contracts for small works, small goods such as office supplies, minor equipment and furniture available locally, or non-consulting services, with a cost estimate equal or bellow US$100,000, may be procured under the shopping procedure in accordance with provision 3.5 of the Procurement Guidelines.
38. Procurement for works, goods and non-consulting services will be carried out using the Bank's SBD for all ICB. In the case of NCB, GoS has developed National SBD but they may not be up to date, particularly with regard to provisions on fraud and corruption. It has been agreed that for this project, the Bank's SBD be adapted (or modified to meet the exceptions authorized under NCB) and used for NCB. In the case of shopping, procurement will be done in accordance with the Bank's Memorandum "Guidance on Shopping," dated June 9, 2000 (provided this Memorandum does not contradict the Procurement Guidelines) and the "Guide for the Procurement of Small Contracts" issued on February 1, 2011.
39. Selection of Consultants. Consultant services to be procured would include services for: design and supervision of works financed under the project, training of beneficiaries in agriculture, agri-business and aquaculture; the promotion of economic activities and employment through agriculture value chains; support of marketing to develop a Casamance branding, and private initiatives of young businessmen and women for the creation of specialized products; studies related to the rehabilitation platforms at the port of Ziguinchor, feeder roads and for facilities to link local markets to commercial zones; capacity building and training for different actors; and technical and financial audits.
62 40. Consultants will be selected using the Quality and Cost-Based Selection (QCBS) method in most cases. In other cases specified in the Procurement Plan (PP) the following methods will be used: (i) Selection under a Fixed Budget (FBS); (ii) Least Cost Selection (LCS); (iii) Selection Based on the Consultants' Qualifications (CQS); (iv) Single Source Selection (SSS); and (v) Individual Consultants (IC) Selection (either through competitive selection or single source).
41. For competitive selection methods, the selection will be done: (i) through requests for expressions of interest (REls) except for the Selection Based on the Consultants' Qualifications and the selection of individual consultants for which REls are not mandatory; and (ii) using the Bank's Standard Request for Proposals where required. For simplified selection methods such as the Selection Based on the Consultants' Qualifications and the Selection of Individual Consultants, the "Guide for the Procurement of Small Contracts" issued on February 1, 2011 may be used (in the present case for the use of CQS or Individual Consultants Selection).
42. Short lists of consulting services with an estimated cost less than $300,000 equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines.
43. Operating Costs. The Credit would finance the incremental operating costs related to implementation of the project. They would be covered whenever possible using shopping procedures or using the Project Operational Manual acceptable to the Bank.
Assessment of the Agency's Capacity to Implement Procurement
44. The procurement activities for the project will be done using ARDs in the Departments covered by the project, and they will benefit from support of the central units in relevant ministries. An assessment of the capacity of these ARDs was carried out by IDA in July 2012. The assessment reviewed the organizational structure for project implementation and the interaction between the project staff responsible for procurement and other technical staff and stakeholders in the project implementation. The key staff of each ARD includes the Director of the ARD, a Civil Engineer, an Agronomist, an Accountant and (normally) a Procurement Specialist; however, none of the ARDs currently have a Procurement Specialist, but the Civil Engineer is handling the procurement tasks in particular for works and works related consulting. These ARDs were field-based executing agencies for the Bank's PLDP which closed in February 2012.
45. As a result of their experience in PLDP implementation, ARD staff is broadly familiar with national procurement procedures and relatively familiar with World Bank procedures. In the case of Ziguinchor, the current ARD Director has participated in implementation of previous Bank projects (the Casamance Emergency Reconstruction Support project) and is familiar with Bank procurement/consultants guidelines. ARD staff used to work with the public entities based in the region in their respective specialties in order to ensure quality documents and they submit the procurement documents to the regional procurement body for prior review when required. The ARD team is experienced in the procurement of small contracts but less so with medium contracts under diverse procedures (national, World Bank and other donors).
63 46. Most of the issues/risks concerning the procurement component in project implementation arise from an increased procurement workload and from contract management. The increased procurement workload as a result of the project could challenge the ARDs. There may also be a need to improve contract management in the context of a fiduciary role for contract oversight of ARDs.
47. As a mitigation measure, a Procurement Specialist has been recruited to support the three ARDs and will be based in Ziguinchor. He will be in charge of supervision of the procurement function and overall quality of procurement under the project. Another mitigation measure includes the recruitment of three Procurement Assistants, one in each region. In the event that the increased workload affects the procurement function, the agencies will consider additional procurement consulting services while ensuring the continuous involvement of the core technical structures in support to the procurement unit in ARDs. The implementing agencies will ensure continuous capacity building in procurement and contract management under the World Bank procedures, for both procurement units in ARDs and its other technical departments. Annual procurement audits should be done to look at procurement implementation and to recommend adequate measures in case of eventual insufficiencies.
48. The assessment rates the procurement risk as Substantial in view of the size of the contracts expected under the project, the fact that the project will operate in a fragile setting and the absence of procurement specialists in the ARDs.
Procurement Plan
49. The Borrower has developed a preliminary Procurement Plan for project implementation during an initial period of 18 months, which provides the basis for the procurement methods. The Procurement Plan was approved by the Bank on July 19, 2013. The approved plan will be made available on UNDB online, at the respective offices of the stakeholders involved in the project, and in the ARD offices. It will also be available in the project's database and on the Bank's external website. The Procurement Plan will be updated in agreement with the Project Team at least annually or as required to reflect actual project implementation needs and improvements in institutional capacity.
Frequency of Procurement Supervision
50. In addition to the prior review supervision to be carried out from Bank offices, the capacity assessment of the implementing agencies has recommended two supervision missions a year; during one of those missions, a post review of procurement will be carried out.
64 II. Procurement of Goods, Works, and Non-Consulting Services Casamance Development Pole Project Procurement Plan for the period of 2013-2014 I. General Project ID: P125506 Procurement Risk associated as per the project appraisal: "Substantial" Revision: July, 19, 2013 Cleared: July 19, 2013
II. Procurement of Goods, Works, and Non-Consulting Services Table 15: Procurement subject to prior-review by IDA, as considered in Appendix 1 of the Procurement Guidelines. Procurement Methods Threshold for Prior-review (US$) Comments 1. ICB and LIB (Goods) or >US$ 1,000,000 ICB and LIB used for all contracts equal or more than US$1,000,000 2. NCB (Goods) On a case by case basis NCB can be used for goods less than US$1,000,000 3. IC = or >US$ 10,000,000 ICB used for all contracts equal or more than US$10,000,000 4. NCB (Works) On a case by case basis NCB can be used for goods less than US$10,000,000 for all contracts equal 5 ICB (Non-consulting Services), if or >1,000,000 US$ ICB and LIB used any or more than US$1,000,000 used for goods less than 6. NCB (Non-consulting Services), if On a case by case basis NCB can be any US$1,000,000 Shopping (Goods) Shopping could be used for contract with 7. Shopping (Works) estimated value below or equal to Shopping (Non-consulting Services) US$100,000 8. Direct Contracting All contracts subject to IDA prior- review
65 2. List of contracts, including associated procurement method and key milestones. Table 16: Goods and non-consulting services Estimated . Review by Comments Ref. Contract st Procurement Domestic Bank Expected Bid- No. (Description) (Us ) Method Pref. (i s Opening Date (US$000) (Prior/Post) . Prior Review of Acquisition of agricultural NCB Pro.eiwo 1 Aquisit 480 No No Prior 06/30/2014 the 1st NCB equipment contract for goods 2 Acquisition of agricultural 78 NCB No No Post 06/30/2014 inputs Acquisition of eight vehicles for 3 the three ARDs and for the 320 04/15/2014 Coordination . . Prior Review of Acquisition of office furniture . No No Prior 0/421 th e o 4 fo h he Rs70 Shopping for the three ARDs 01/14/2014 the 1st shopping contract for goods Acquisition of computer equipment and office equipment 5 50 Shopping No No Post 06/30/2014 for the Coordination and the three ARDs
Works Labor-intensive Rehabilitation/maintenance works of dykes, small and 1 h u sres in 1,500 NCB No No Post 12/15/2014 hydraulics structures in 50 rainfed rice valleys in the region of Ziguinchor
66 Labor-intensive Rehabilitation/maintenance 2 works of dykes, small and No No Post 12/15/2014 hydraulics structures in 40 rainfed rice valleys in the region of Sedhiou Labor-intensive Rehabilitation/maintenance 3 works of the Pata (600 ha) and 800 NCB No No Post 12/28/2014 Temento (500 ha) Valleys in Kolda region Prior Review of Rehabilitation of 100km of rural the Ist NCB 4 roads in the region of 4,800 NCB No No Prior 11/15/2014 contract for works Ziguinchor in Ziguinchor Region Prior Review of the 1st NCB Rehabilitation of 100km of rural No t 5 . 4,900 NCB No Prior 11/15/2014 contract for works roads in the region of KIolda 4,0.NBi th .eino mn the Region of Kolda Prior Review of Spot improvement of 350km of the 1st NCB 6 earth roads in the Sedhiou 3,500 NCB No No Prior 10/15/2014 contract for works region in the Region of S6dhiou
7 Construction of the offices of 750 NCB No No Post 06/30/2014 the 3 ARDs
(a) ICB Contracts estimated to cost above the equivalent value of US$1,000,000 for works and US$100,000 for goods per contract and all direct contracting will be subject to prior review by the Bank.
67 III. Selection and Employment of Consultants
Table 17: Selection and employment of consultants, subject to prior-review by the Bank as considered in Appendix 1 of the Procurement Guidelines for the Selection and Employment of Consultants.
Procurement Threshold for prior-review Comments Method (US$) 1. Competitive selection methods (firms) = or >US$300,000 2. Single source selection (firms) All contracts 3 Competitive selection methods (individual = or >US$ 100,000 consultants) 4. Single source selection (individual consultants) All contracts Although not specifically linked Contracts for specific tasks such as development withAlth anyno procurement p e a methods, led or update of the project implementation manual, All contracts could be the importance of those contracts supervision contract, monitoring and evaluation subject to prior-review could require Bank's prior- contract, financial audit, technical audit . . ______review on a case-by-case basis
(a) Short list comprising entirely of national consultants. Short list of consultants for services, estimated to cost less than US$300,000 equivalent per contract, may be comprised entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines
68 Consultant Services including associated procurement method and key milestones Table 18: Consulting services
Review Expected Ref. Description of Assignment Estimated Cost Selection by Bank Proposals No. (US$) Method (Prior/Post) Submission Date Technical studies for the construction 1 of the Bignona Platform and the small 500 QCBS Prior 04/15/2014 logistics platforms Supervision of works of 200 km of rural roads in Ziguinchor and Kolda Supervision of works for the spot 3 improvement of 350 km of earth roads 250 QCBS Post 09/15/2014 in S6dhiou Supervision of works for the 4 rehabilitation/maintenance works of 300 QCBS Prior 09/30/2014 rice valleys in Ziguinchor Supervision of works for the 5 rehabilitation/maintenance works of 300 QCBS Prior 09/30/2014 rice valleys in S6dhiou Supervision of works for 6 rehabilitation/maintenance works of 200 QCBS Post 10/15/2014 rice valleys in Kolda Study to define a national framework 7 for the development pole and strategy 150 QC Prior 04/15/2014 for the Government Study for a comprehensive cadaster 8 and a mapping (geo-reference) of 350 QCBS Prior 06/30/2014 activities in Casamance Study for the definition of a fiscal 9 framework in the context of 100 QCBS Prior 04/15/2014 decentralization
69 10 Project External Audit 50 QCBS Prior 04/15/2014 11 Procurement Audit 50 QCBS Prior 10/01/2014
(b) Consultancy services (firms) estimated to cost above US$300,000 per contract and consultants services (individuals) estimated to cost above US$100,000 and single source selection of consultants will be subject to prior review by the Bank.
(c) Short list comprising entirely of national consultants. Short list of consultants for services, estimated to cost less than US$ 300,000 equivalent per contract, may comprise entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines.
70 Project Monitoring and Evaluation
51. Each ARD has an M&E specialist who will be partially committed to the implementation of the project. The specialist will be responsible for collecting and analyzing data, for updating the MIS database, the baseline and for providing data analysis to the PSC. The objective will be to ensure close monitoring of activities but also to provide data and analysis to the coordinator to promote and stimulate partnerships to guide the use of project funding. A senior M&E Specialist will be recruited by the project and be responsible for compiling and analyzing data from the ARDs, presenting analyses and reports to the PSC regarding project activities, results and impacts. Collaboration will be developed with other information systems and statistical services that may receive support from the project to strengthen or broaden their activities.
52. The M&E system will generate, aggregate and systematically record information/data from various levels (regions, departments, and communities as well as qualitative and quantitative surveys) related to the project outcome indicators/results, implementation progress and performance, and project characteristics. It will analyze such data to evaluate impacts and outcomes, track progress, identify implementation bottlenecks for quick resolution, and monitor the quality of the process. The M&E system will also document, disseminate and facilitate discussion on key lessons to users and stakeholders at different levels for learning purposes. The PIM will include a detailed M&E chapter describing the M&E system, procedures and tools.
53. The project will focus on keeping the system simple and interactive, allowing regular reporting and learning by stakeholders at all levels. Reporting formats will be further refined and process monitoring at the community level will be undertaken by external consultants, including assessments of planning at the community level, effectiveness and quality of capacity building efforts, and improvements in local level planning in areas such as implementation standards, sustainability issues, transparency and accountability, and environmental and social safeguards management. The project MIS will enable widespread accessibility by all stakeholders over the internet and recording of information on characteristics of activities and their performance.
54. Throughout implementation, the project will be required to carry out safeguard monitoring to ensure that it brings intended benefits, while ensuring that potential adverse environmental and social impacts are avoided or minimized. Safeguard monitoring will include environmental and social performance reviews by a local consultant contracted to visit a sample of activities each year to assess compliance with safeguard instruments, determine lessons leamt and provide guidance for improving future performance. Reporting formats will also include indicators on safeguards.
55. The impact evaluation is proposed to estimate the economic and social impacts of interventions associated with extended basic road access on rural road users and the rural population, with a particular focus on impacts on women. The impact evaluation will assess the impact on key outcome indicators of the results framework and possibly other impact indicators, including outcomes related to access to markets, year-round connectivity, and lower transportation costs. Depending on the associated interventions, the evaluation would assess impacts on issues of gender empowerment, health and education. Some possible interventions include public works projects targeting women, and training for communities that are linked to the new roads, or micro-credits for business development.
71 56. A baseline survey will provide the benchmarks against which key results, outcomes and impacts will be measured. Findings from the baseline survey will be used to fine tune the project strategy and interventions. A follow-up survey will be carried out after the interventions are completed. Timing of the follow-up survey will depend on the specific indicators/outcomes chosen as the basis for the impact evaluation, and the estimated time required for the intervention(s) to have meaningful impacts on outcomes.
57. While the rural roads component of the project will be identified according to project priorities, areas included in the impact evaluation may be selected from within affected zones. Unit of observation (e.g., as defined by administrative or geographic boundaries) and eligibility criteria will be agreed with the project team. The impact evaluation will have a control group and one or more treatment arms. The evaluation will employ an experimental design, and the control or treatment arm will be randomly assigned.
58. Data collection processes and principles will be defined in the impact evaluation concept note and questionnaire (to be developed in conjunction with impact evaluation experts). The drafting of specific impact evaluation documents (concept note which will be subject to peer review, followed by the detailed implementation and work plan, instruments, etc.) will commence in the run up to the project becoming effective.
72 Annex 4: Operational Risk Assessment Framework (ORAF)
Senegal: Casamance Development Pole Project (P125506) Stage: Appraisal Risks
Stakeholder Risk Rating High Risk Description: Risk Management: There is a risk that tensions intensify in To manage this risk, IDA is supporting the government to implement a dynamic reconciliation Casamance jeopardizing peace process and support the peace process at the national, regional and local levels through opportunities for a long period of time in activities of the approved SPF grant and training in physical disarmament of ex-combatants as the context of instability in Guinea- well as the disarmament of hearts via a social dialogue and the implementation of a Bissau, given the recent political events communication strategy. This social strategy is complemented by the implementation of an in that country. There are numerous important economic program addressing the main conflict drivers such as the isolation of the stakeholders in the Casamance conflict: region and youth unemployment national and local government, CSOs, Resp: Both Status: In Stage Both Recurrent Due Frequenc women's groups, youth associations, Progre Date: y: NGOs, researchers, religious, traditional ss and opinion leaders, the rebel movement and the population of the Casamance Resp: Clien Status: In Stage Both Recurrent Due Frequenc region at large. All have different t Progre : : Date: y: perspectives on the dialogue for peace ss and are confronted with colliding differences and interdependencies. Though the crisis is characterized as of low intensity, it is a complex crisis due to its duration and nature. This puts the stakeholder risk at a high rating.
73 Capacity Rating Low Risk Description: Risk Management: Implementation at the decentralized The project will support a comprehensive needs assessment and gap analysis to continue level has capacity implications risk. supporting the regional agencies and identify training as well as additional skills and However, over the last five years (2006- knowledge needs. The project will support in-service training programs focusing on technical 2012), the Participatory Local fields such as value chain approaches, transport and fiduciary systems in the regions. Development Project which closed on Resp: Clien Status: In Stage Imple Recurrent Due Frequenc February 2012, has supported the t Progre : ment : Date: y: capacity building of all 14 Regional ss ation Development Agencies of the country in terms of institutional reform, staffing and training in various areas including fiduciary, M&E, safeguards, and contract management. The proposed Casamance operation is building on this capacity and intends to make optimal use of this institutional resource at the regional level. The risk is rated as low. Governance Rating Moderate Risk Description: Risk Management: In general, regional agencies are poorly The project will reinforce local governance through stakeholder participation, decentralized resourced compared to institutions at the funding and management, and transparent communication. national level. This makes them Resp: Clien Status: In Stage Imple Recurrent Due Frequenc vulnerable in terms of their governance. t Progre ment Date: y: However, the boards of the regional a agencies are composed of regionally elected officials who make them closer Resp: Clien Status: In Stage Both Recurrent Due Frequenc to beneficiaries and stakeholders. This is t Progre : : Date: y: a mitigation measure. ss
74 Design Rating High Risk Description: Risk Management: Despite the experience of Regional This risk is taken into account by the three Regional Agencies themselves at the center of the Agencies in implementing IDA funded implementation responsibility. The Bank team has had extensive discussions with the Prime activities, the multi-sector and multi- Minister's office, the Ministry of Economy and Finance and the Ministry of Local Government actor nature of the project, could on the merits and risks of multi-sector and growth pole approaches as well as decentralized constitute a risk in the speed of implementation arrangement. preparation, implementation and Resp: Clien Status: In Stage Imple Recurrent Due Frequenc therefore disbursement rates. t Progre ment Date: y: ss ation Social and Environmental Rating Moderate Risk Description: Risk Management: The development of the platforms and The Bank team will ensure that all adequate required documents (ESMF, EIAs, RPFs, RAPs) agriculture/aquaculture farms may are prepared on time to plan for mitigation measures. Cases of land disputes will be adequately involve loss of assets and affect treated in the conflict zone of Casamance at the community level. livelihoods with restricted access of Resp: Clien Status: In Stage Both Recurrent Due Frequenc resources. The quality and adequacy of t Progre Date: y: safeguards policies, and the Bank's ss compliance standards are well known to the staff of Regional Agencies. Program and Donor Rating High Risk Description: Risk Management: If a Peace Treaty is signed, a variety of Bank management is working with the authorities in Senegal at the highest level on a road map development partners will want to set up for achieving results in Casamance in terms of peace and economic development. The projects in Casamance. Without a clear Government intends to set up strong donor coordination for interventions in Casamance by road map and strong donor coordination, convening a Donor Coordination mechanism. Transparent social accountability mechanisms inconsistencies in interventions may will be utilized in implementation of project activities. occur.
75 Resp: Clien Status: In Stage Imple Recurrent Due Frequenc t Progre ment Date: y: ss ation Delivery Monitoring and Rating Low Sustainability Risk Description: Risk Management: Given the GoS budget situation, there may be issues of counterpart funding Resp: Clien Status: In Stage Imple Recurrent Due Frequenc which is critical to expand the project t Progre ment Date: y: coverage and sustainability. However, ss ation the GoSs has confirmed repeatedly that resolving the Casamance conflict is a high priority. Thus, it is likely that GoS will also prioritize counterpart funding for the project. Other (Optional) Rating Risk Description: Risk Management: Resp: Status: Stage Recurrent Due Frequenc Date: y:
Overall Preparation Substantial Overall Implementation Substantial Risk: Risk: Risk Description: Risk Description: n/a n/a
76 Annex 5: Implementation Support Plan Senegal: Casamance Development Pole Project
Strategy and Approach for Implementation Support
1. The Implementation Support Plan (ISP) describes how IDA will support the implementation of the risk mitigation measures (identified in the ORAF) and provide the technical advice necessary to facilitate achievement of the PDOs (linked to results/outcomes identified in the result framework). The ISP also identifies the minimum requirements to meet the Bank's fiduciary obligations. Its content is described below.
2. Implementation Support Plan. The project implementation strategy will be based on ensuring (i) a high degree of quality at entry and implementation readiness of all project components; (ii) focused technical, financial and procurement reviews both by Bank task team and Bank-hired consultants; and (iii) a close and continuous follow-up on issues highlighted during implementation support missions. In order to put in place a continuous implementation support strategy, especially during the first two years of project implementation, the supervision effort will focus on efficiently and effectively implementing the procurement activities.
3. Team composition. The implementation support team will consist of three senior Bank staff with specialty in social development, rural development/agribusiness and transport respectively. In addition, fiduciary staff (procurement and financial management) as well as social and environmental staff will support implementation of specific activities under the project, in their respective areas of expertise. Environmental and social specialists supporting the project will closely monitor the implementation of mitigation measures as described in the safeguards documents.
4. Financial Management. Supervision will focus on the review of the project's FM system, including accounting, reporting and internal controls. The objective of the ISP is to ensure that the project maintains satisfactory FM systems throughout its life cycle. Based on the outcome of the FM risk assessment, the following ISP is proposed:
FM Activity Frequency Desk reviews Interim financial reports review Quarterly Audit report review of the program Annually Review of other relevant information (e.g., interim Continuous as they become internal control systems reports) available On site visits Review of overall operation of the FM system Annual (Implementation Support Mission) Monitoring of actions taken on issues highlighted in audit As needed reports, auditors' management letters, internal audit and other reports Transaction reviews As needed
77 Capacity building support FM training sessions During implementation and as needed.
5. Procurement. Based on the assessment of the capacity of the ARDs carried out in July 2012, the following corrective measures have been agreed upon: (i) recruitment of a Procurement Specialist based in Ziguinchor who will be in charge of the supervision of the procurement function and for the overall quality of procurement under the project, and one Procurement Assistant for each region (Ziguinchor, S6dhiou and Kolda); (ii) ensure continuous capacity building in procurement and contract management under World Bank procedures, for both procurement units of the ARDs and its other technical departments; and (iii) conduct annual procurement audits to look at procurement implementation and to recommend adequate measures in case of eventual insufficiencies.
6. Frequency of Procurement Supervision. A supervision mission will be carried out every six months by the Dakar-based staff. A Procurement Post-Review (PPR) will be done at that time to review implementation of procurement actions.
7. A Procurement Plan has been prepared by the Borrower to cover the first 18 months of project implementation. The Plan provides the basis for the procurement methods. It will be available at the three ARDs, in the project's database and in the Bank's external website. The Plan will be updated annually in agreement with the Project Team or as required to reflect the actual project implementation needs and improvements in its institutional capacity.
8. Environmental and Social. Dakar-based Bank team members responsible for environmental and social safeguards will join all supervision missions to monitor the preparation and implementation processes of safeguards instruments.
9. Results Monitoring and Evaluation. Each ARD has an M&E Specialist who will be partially committed to the implementation of the project. The Specialist will be responsible for collecting and analyzing data, updating the baseline database and providing data analysis to the PSC.
10. Frequency of implementation support effort There will be at least two full implementation support missions per year. Additional missions could be fielded to address any specific issue that may arise.
11. Implementation support budget. To ensure a strong and continuous implementation support effort, especially during the first 24 months of project implementation, an annual supervision budget of US$125,000 would be required to cover all related fixed and variable costs. Table 18 below provides a breakdown of the estimated budget.
78 Table 19: Estimated Supervision Budget (Core Task Team) (First 36 months of project implementation)
. Number of Staff Team member by skill mix weekS weeks Senegal-based Task Team Leader 8
Senegal-based Co-TTL 8 Cameroun-based Rural Development 2 Specialist Senegal-based Procurement Specialist 3
Senegal-based FM Specialist 2
Senegal-based Environmental Specialist 3
Total 26
79 Annex 6: Economic and Financial Analysis of the Project Senegal: Casamance Development Pole Project
I. INTRODUCTION
1. In support of the GoS, the World Bank, through this project, intends to fund in a sustainable way agriculture and agribusiness in order to contribute to the reduction of food insecurity and generate more revenues for farmers in the country and particularly in the Casamance region.
2. The objectives of the study were to: (i) carry out the cost-benefit analysis of each of the agricultural product value chains supported by the project (rice, banana, sweet potato, mango and cassava) based on Net Present Value (NPV) and Economic Rate of Return (ERR) estimates; and (ii) evaluate the social and economic impacts of the project by analyzing its potential effects on agricultural growth, poverty and food security. The cost-benefit analysis is based on data from DRDR (DirectionRegionale du Developpement Rural), ISRA, and ARDs.
II. METHODOLOGY
3. For all five value chains and the platform, the analysis covers a 10-year period (2013-22). Main indicators used are the Net Present Value (NPV), the economic rate of return (ERR) and the domestic resource cost (DRC). As standard practice in similar projects, the discount rate of 12 percent was used. For the financial analysis, revenues and costs were estimated at market prices and for economic analysis, financial prices were converted to economic prices from economic and financial coefficients computed for every value chain.
4. Starting from 2013, revenues and costs are projected to increase by 2 percent yearly. Cash flows are estimated for each value chain in 2013, in constant CFAF until 2022 for rice in the flooded and prone-to-flooding valleys and horticultural products (mango, banana, cassava and sweet potato). The economic and financial analysis of the Bignona platform is analyzed for the period 2013-22.
Assumptions
5. Production and investment models were built for rice, banana, mango, cassava, and sweet potato, based on the following assumptions:
Rice
Agricultural production is allocated as follows: * Sold production: 85 percent of production is sold to processors. * Losses: 5 percent of rice production * Production available to consumers: 10 percent for rice * Value of output = production sold to processors + production made available to consumers.
80 6. During 2013-15, rice production is assumed to grow at 10 percent per year and stabilize (i.e., no growth) thereafter. The growth rate of consumption is assumed to match the population growth rate of 2.5 percent per year.
Horticulture
7. Growth rates of production and consumption for target products are based on the population growth rate. Investments are estimated as follows:
> To determine investment for each crop per hectare, we divide the total investment per product (specific investment + specific part of overall investment) by the number of effective hectares per crop.
> Estimates of horticulture production per hectare have been done by region (Kolda = CFAF 552, 000; S6dhiou = CFAF 110,000; Ziguinchor = CFAF 110,000). The first year investment for rice, cassava, sweet potato and banana yield returns in the third year and for mango in the fifth year.
Economic platform of Bignona
8. Revenues will come essentially from horticulture (vegetables and fruits) and forestry products. The estimated volume of these products is 54,000 tons for an estimated value of CFAF 5,164 million. At the level of the platform, the analysis assumes that growth in production and consumption for these products is the same as growth in population.
9. Prices of timber and non-timber products are collected by the Direction des Eaux et For6ts,ISRA and CSE.
Estimation of Cost
Transportation cost: 2 FCFA/kg x distance Handling cost: 5 FCFA/kg Labor cost: 10 percent of investments Maintenance costs: 5 percent of investments Operating costs: 1 percent of investments
81 III. RESULTS
3.1 Economic and financial evaluation of agricultural value chains and the platform Table 20: Economic and Financial Evaluation of Agricultural Value Chains and Platform Financial evaluation Economic evaluation Regions Value change NPV ERR NPV ERR (CFAF) (%) (CFAF) (%) DRC Kolda Rainfed Rice 2,187,991 47.0 4,630,191 68.0 0,13 Sedhiou Rainfed Rice 4,508,729 84.0 3,082,427 63.0 0,30 Banana 43,446,948 70.0 51,401,081 75.0 Rainfed Rice 4,630,233 89.0 3,204,326 67.0 0,60 Ziuinchor Mango 18,735,828 45.0 15,714,786 42.0 0,19
Cassava 4,830,814 70.0 2,932,085 60.0 _ Sweet Patato 22,405,726 75.0 11,410,421 54.0 Economic platform 11,605,308,637 0.0 8,683,779,728 37.0
3.2 Economic and financial evaluation of the aggregate rice value chain and platform
10. Table 20 shows that the CDPP is financially profitable with a NPV of CFAF 11,609,084,288 and an ERR of 26 percent. It is also economically profitable with a NPV of CFAF 8,687,418,709 and an ERR of 33 percent.
Table 21: Economic and Financial Evaluation of the Aggregate Rice Value Chain and Platform Value Chains Indicators Financial Economic Evaluation Evaluation CFAF CFAF
Rain fed rice NPV 3,775,651 3,638,981 ERR 73% 66% Banana NPV 43,446,948 51,401,081 ERR 70% 75% Mango NPV 18,735,828 15,714,786 ERR 45% 42% Cassava NPV 4,830,814 2, 932,085 ERR 70% 60% Sweet potato NPV 22,405,726 11,410,421 ERR 75% 54% Economic Platform NPV 11,605,308,637 8,683,779,728 ERR 0% 37% Economic and financial evaluation of aggregate rice value chains and platform NPV 11,609,084,288 8,687,418,709 ERR 26% 33%
82 CONCLUSION
11. Results obtained indicate that the project is economically and financially profitable with a largely positive NPV for all sub-components and ERR varying between 37 percent for the platform and 90 percent for the production of rice. The project is expected to have an important economic impact on horticulture and particularly on the banana value chain as the existing bottlenecks severely constrain its development.
12. Overall, the preliminary analysis of the Bignona platform indicates that it is economically and financially viable. Under a hypothesis of 54,000 tons passing through the platform, the economic rate of return is estimated at 37 percent. The sensitivity analysis indicates that it will be profitable beyond 20,000 tons of products passing through the platform. This volume of activity is less than 15 percent of exports of the department of Bignona. Moreover, it is estimated that half of the export from the department alone mostly mangoes, citrus fruits, and cashew nuts (Kolda and S6dhiou excluded) exceed 25,000 tons and will transit through the platform starting from year one of its opening.
83 Annex 7: Summary of the implementation of critical safeguard measures Senegal: Casamance Development Pole Project
No. Actions Timeline Responsible 1 Safeguard processing of any activity prior to During project ARDs their implementation implementation 2 Implementation, follow up and reporting on During project ARDs/Consultants the specific ESIAs, ESMPs, RAPs implementation 3 Capacity building of relevant stakeholders During project CO implementation 4 Mid-term audit of the implementation of By Mid-term ARDs safeguards recommendations and measures Review 5 Final audit of the implementation of By project closing ARDs safeguards recommendations and measures
84 18°W 16°W 14°W SENEGAL M U MAURITANIA CASAMANCE POLE
Nouakchot °°°\ DEVELOPMENT SENEGAIL,& RichardNdTe HaréLao, PROJECT
GeSAINT- To PROJECT INTERVENTION AREA L OUI S adimbout o CITIES AND TOWNS 16°N ...... 16°N e REGIONCAPITALS Thilogne Mpl Lagbar ® NATIONAL CAPITAL Léona /RIVERS Ndiae • oug Matm •MAIN ROADS Koki Tioukougne Peul RAILROADS Kébémèr Daraa Lnure REIONABD A Fås Boye -- INTERNATIONAL BOUNDARIES Darou Khoudlos Mékhé Darou Mousti L O U GA MamBSi
CAP- 'KayarVéngrTivaouaneBae VERT", .Thiés DIOURBEL MkéLa Ferdo MATAM DAKAPR Rufoodque T h//so• Diourbeltd aint-Lou Us ÉDIUKL én FA TICK a d°6 Payar 1Kayes Mbour, Toubéré Bafal y Fatick 'jGuinguinéioS° KAFFRINE cp\nge KaolEck Kfrn 14° ALA TC Mael ana ne Koungheul Koussanar TAMB OUNDA
OCEAN Karang Nioro du Rip MakaTabcud
G6-, 0.e K OLDA A-. SÉEH ýK OU É DoO UuG O U ZICGUINC HOR Bon19Dj od 0 25 50 7 5 100 Kilometers Bin aM ,e -- Mako Saraya
0 2 50 75 es419 m Kédougou
This map wa producd by the Map Design Unit of The World Bank. U -B The boun.d.ries, color, deo ntos and an1terifrato.lke G lN E A | $ S A U show.o thks map do.not imply,..n the partof The World1Bank ýGU | N E A 12°N Grupan ugeto telglsau o n ertryray. Ý° 18°W 16°1W 14°W e u 12°W