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First Bank Mission Document of The World Bank Public Disclosure Authorized Report No: 259 16-MOR Public Disclosure Authorized PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN IN THE AMOUNT OF EURO 25 MILLION (US$26.8 MILLION EQUIVALENT) TO THE KINGDOM OF MOROCCO FOR THE Public Disclosure Authorized RAINFED AGRICULTURE DEVELOPMENT PROJECT May 15, 2003 Public Disclosure Authorized Water, Environment, Social and Rural Development Department Middle East and North Africa Region CURRENCY EQUIVALENTS (Exchange Rate Effective April 18, 2003) CurrencyUnit = MAD MAD 1 = US$O.lO US$1 = MAD9.92 FISCAL YEAR January 1 -- December 31 ABBREVIATIONS AND ACRONYMS ADS Social Development AgencylAgence de de'veloppement social BAJ Social Priorities ProgramlProgramme des priorite's sociales BD Budget DirectoratelDirection du budget CAS Country Assistance StrategylStrate'gie de coope'ration CCSS Central Comssion for Supervision and Monitoring1 Commission centrale de supervision et de suivi CGP Project Management UnitICellule de gestion du projet CIP Communal Investment PlanlPlan d'investissement communal CIPDR Permanent Interministerial Rural Development Council1 Conseil interministtriel permanent de de'veloppement rural CLMVA Rainfed Agriculture Development Commission1 Commission locale de mise en valeur agricole CMV Agricultural Development CenterlCentre de mise en valeur CPRDR Provincial Core Rural Development Committee1 Comite' provincial restreint pour le de'veloppement rural CT Extension CenterlCentre de travaux CTP Provincial Technical CommitteelComite' technique provincial DAF Land Development DirectoratelDirection des ame'nagementsfonciers DERD Training, Research and Development DirectoratelDirection de 1 'enseignement, de la recherche et du de'veloppement DPA Provincial Agricultural DirectoratelDirection provinciale de l 'agriculture DPAE Planning and Economic Affair Directorate1 Direction de la planif cation et des afaires tconomiques DRH Human Resources DirectoratelDirection des ressources humaines EA Environmental AssessmentlEvaluation environnementale EAM Methodological Support TeamlEquipe d'appui me'thodologique EMP Environmental Management PlanlPlan de gestion de 1 'environnement EPP Participatory Programming TeamlEquipe de programmation participative FDR Rural Development FundFonds de de'veloppement rural FMR Financial Monitoring ReportlRapport de suivifinancier GDP Gross Domestic ProductlProduit national brut GOM Government of MoroccolGouvernement du Maroc INRA National Agricultural Research Institutellnstitut national de la recherche agronomique IBCD Irrigation Based Community Development Prograd Programme de de'veloppement rural inte'gre' centre' sur la PMH IFC International Finance CorporationlSocie'te'financi2re internationale IM Implementation ManuallManuel de proce'dures MAD Moroccan DirhamlDirham marocain MADR Ministry of Agriculture and Rural Development1 MinistPre de l'agriculture et du de'veloppement rural M&E Monitoring and EvaluationlSuivi et e'valuation MOF Ministry of Finance and PrivatizationlMinistPre desfinances et de la privatisation NSC National Steering CommittelComite' national de pilotage NGO Non-governmental OrganizationlOrganisation non-gouvernementale O&M Operation and MaintenancelExploitation et entretien OPA Farmers OrganizationIOrganisation professionnelle agricole ORMVA Regional Agricultural Development Authority/ Office re'gional de mise en valeur agricole PAGER Potable Water ProgradProgramme d'approvisionnement groupe' en eau rurale PAZ Priority Action ZonelZone d'action prioritaire PERG Rural Electrification ProgramlProgramme d'e'lectrification rurale groupie PCLES Drought Emergency ProgramlProgramme de lutte contre les effets de la se'cheresse PMVB Rain fed Development SitelPe'rimPtre de mise en valeur bour PNRR Rural Roads ProgramlProgramme national des routes rurales RADP Rainfed Agriculture Development Project1 Projet de de'veloppment rural inte'gre' de mise en valeur des zones bour RC Rural CommunelCommune rurale SOE Statement of ExpenditureslReleve' de de'penses SA Special AccountlCompte spe'cial SEPS Studies and Monitoring ServiceslSewice des e'tudes et du suivi TGR TreasurylTre'sorerie ge'ne'rale du Royaume UGP Pronvincial Management UnitlUnite' de gestion provinciale Vice President: Jean-Louis Sarbib Country ManagerDirector: Theodore Ahlers Sector ManagerDirector: Petros Aklilu Task Team LeaderITask Manager: Laurent Msellati MOROCCO RAINFED AGRICULTURE DEVELOPMENT PROJECT CONTENTS A. Project Development Objective Page 1. Project development objective 2 2. Key performance indicators 2 B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project 2 2. Main sector issues and Government strategy 3 3. Sector issues to be addressed by the project and strategic choices 6 C. Project Description Summary 1. Project components 6 2. Key policy and institutional reforms supported by the project 9 3. Benefits and target population 9 4. Institutional and implementation arrangements 10 D. Project Rationale 1. Project alternatives considered and reasons for rejection 14 2. Major related projects financed by the Bank andor other development agencies 15 3. Lessons learned and reflected in the project design 16 4. Indications of borrower commitment and ownership 17 5. Value added of Bank support in this project 17 E. Summary Project Analysis 1. Economic 18 2. Financial 19 3. Technical 20 4. Institutional 21 5. Environmental 22 6. Social 23 7. Safeguard Policies 25 F. Sustainability and Risks 1. Sustainability 25 2. Critical risks 26 3. Possible controversial aspects 28 G. Main Conditions 1. Effectiveness Condition 28 2. Other 28 H. Readiness for Implementation 30 I. Compliance with Bank Policies 30 Annexes Annex 1: Project Design Summary 31 Annex 2: Detailed Project Description 39 Annex 3: Estimated Project Costs 50 Annex 4: Cost Benefit Analysis Summary 52 Annex 5: Financial Summary 59 Annex 6: Procurement and Disbursement Arrangements 60 Annex 7: Project Processing Schedule 71 Annex 8: Documents in the Project File 72 Annex 9: Statement of Loans and Credits 73 Annex 10: Country at a Glance 75 Annex 11: Social and Beneficiaries Assessment 77 Annex 12: Environmental Assessement 85 Annex 13: Drought Preparedness and Incentive Framwork 92 Annex 14: Project Implementation 101 Annex 15: Rural Development Policy Letter 113 MAP(S) Rainfed Agriculture Development ProjectlProjet de de'veloppement rural intkgrk de mise en valeur des zones '%our" (IBRD 3 1289) MOROCCO Rainfed Agriculture Development Project Project Appraisal Document Middle East and North Africa Region EASRD Date: May 15,2003 Team Leader: Laurent Msellati Sector Director: Letitkkng Sector@): General agriculture, fishing and forestry sector Zountry Director: Theodore 0.Ah1 (40%), Irrigation and drainage (20%), Roads and Project ID: PO69124 & highways (20%), Other social services (lo%), Central Lending Instrument: Specific Investment Loan (SIL) government dmh&ration (10%) Theme(s): Other environment and natural resources management (P), Rural services and infrastructure (P), Social risk reduction (P), Civic engagement, participation and community driven development (S) [XI Loan [ ] Credit [ ] Grant [ ] Guarantee [ ] Other: For Loans/Credits/Others: Loan Currency: Euro Amount (US$m): 26.80 Borrower Rationale for Choice of Loan Terms Available on File: Yes Proposed Terms (IBRD): Variable-Spread Loan (VSL) Grace period (years): 5 Years to maturity: 20 Commitment fee: 0.75% Front end fee (FEF).. on Bank loan: 1.00% Financing Plan (US$m): Source Local Foreign Total BORROWER 11.00 11.70 BRD 6.90 19.90 26.80 LOCAL COMMUNITIES 2.60 1 0.00 2.60 rotal: 20.50 I 20.60 I 41.10 Borrower: KINGDOM OF MOROCCO Responsible agency: MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT Address: Direction des amenagements fonciers (DAF) Contact Person: Mr. Mohamed Milourhmane, Director Tel: 212-37-29 99 45 Fax: 212-37-69 84 34 Email: [email protected] Estimated Disbursements ( Bank FY/US$m): Annual 0.60 2.00 4.50 6.00 5.70 5.20 2.80 Cumulative 0.60 2.60 7.10 13.10 18.80 24.00 26.80 Project implementation period: 6 years Expected effectiveness date: 01/01/2004 Expected closing date: 1213 112009 A. Project Development Objective 1. Project development objective: (see Annex 1) The Rainfed Agriculture Development Project (R4DP) is the first phase of a wider program aimed at assisting the Ministry of Agriculture and Rural Development (MADR in French) in implementing its recently adopted rural development strategy (the “2020 Rural Development Strategy”) in rainfed areas. The overriding goal of the RADP is to improve the socio-economic conditions of smallholder farmers and herders in rainfed areas by promoting local participatory development and fostering sustainable agricultural growth. To this end, the proposed Project would have the following specific objectives: 0 To build institutional capacity for project identification and implementation in rainfed areas, in partnership with local organizations. 0 In seven priority areas: (a) to improve the household incomes oflocal populations and their access to basic rural infrastructure; and (b) to promote sustainable development of rainfed agriculture farming systems and reduce their vulnerability to drought. This project has been developed around three guiding principles: (a) to align all existing programs for rainfed agriculture development with MADRs objectives, as laid out in the “2020 Rural Development Strategy”; (b) to develop new approaches for rainfed agriculture development, taking into account the impact
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