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Kingdom of Bhutan Kingdom of Bhutan Commercial Agriculture and Resilient Livelihoods Enhancement Programme (CARLEP) PROGRAMME DESIGN REPORT Main report and appendices Document Date: 27-Jul 2015 Project No. [Insert project number] Asia and Pacific Division Programme Management Department Kingdom of Bhutan Commercial Agriculture and Resilient Livelihoods Enhancement Programme (CARLEP) Programme Design Report Contents Currency equivalents i Weights and measures i Terms and Definitions i Abbreviations iii Fig 1. Map of the programme area – Dairy value chain v Fig 2. Map of the programme area – Vegetable value chain vi Executive Summary vii Logical Framework xii I. Strategic context and rationale 1 A. Country and rural development context 1 B. Programme rationale 4 II. Programme description 8 A. Programme area and target groups 8 B. Goal, objective and impact indicators 9 C. Programme Components 10 D. Lessons learned and adherence to IFAD policies 19 III. Programme implementation 21 A. Implementation approach 21 B. Organizational framework 21 C. Planning, M&E, learning and knowledge management 24 D. Financial management, procurement and governance 25 E. Supervision 28 F. Risk identification and mitigation 28 IV. Programme costs, financing, benefits and sustainability 29 A. Programme Costs 29 Table 3: Programme Costs summary (in USD’000 and BTN million) 29 B. Programme financing 29 Table 4: Programme Costs and Financing plan (USD’000) 29 C. Summary benefits and economic analysis 29 D. Sustainability 31 Appendix 2: Poverty, targeting & gender 41 i Kingdom of Bhutan Commercial Agriculture and Resilient Livelihoods Enhancement Programme (CARLEP) Programme Design Report Appendix 4 Detailed programme description 66 Appendix 5. Institutional aspects & implementation arrangements 80 Appendix 6: Planning, M&E, learning & knowledge management 104 Appendix 7: Financial management & disbursement arrangements117 Appendix 8: Procurement 126 Appendix 9: Programme cost & financing 135 Appendix 10: Financial & economic analysis 139 Appendix 11: Draft Programme Implementation Manual (PIM) 146 Appendix 12: Compliance with IFAD policies 150 Appendix 13: Contents of the Programme Life File 154 List of Working Papers (Not attached to PDR) WP 1: Agriculture WP 2: Livestock WP 3: Vegetable and dairy value chains WP 4: Marketing of agricultural products WP 5: Institutional capacity and capacity building WP 6: Climate change impacts and vulnerabilities WP 7: Business and enterprise development WP 8: Poverty, Gender and Targeting WP 9: Financial management and risks WP 10: Economic and financial analysis WP 11: Programme cost and financing WP 12: Permaculture and biogas WP 13: Programme management, institutional aspects and implementation arrangement WP 14: Monitoring & Evaluation and Knowledge Management WP 15: Lead farmer model WP 16: Guidelines on Community Animal Health Workers Training ii Kingdom of Bhutan Commercial Agriculture and Resilient Livelihoods Enhancement Programme (CARLEP) Programme Design Report Currency equivalents Currency Unit = Bhutanese Ngultrum US$ 1.0 = Nu. 55 Weights and measures 1 kilogram = 1000 g 1 000 kg = 2.204 lb. 1 kilometre (km) = 0.62 mile 1 metre = 1.09 yards 1 square metre = 10.76 square feet 1 acre = 0.405 hectare 1 hectare = 2.47 acres i Kingdom of Bhutan Commercial Agriculture and Resilient Livelihoods Enhancement Programme (CARLEP) Programme Design Report Terms and Definitions Chiwog Group of Villages for self-governance (sub-block) Collection centre It is a temporary structure or facilities at strategic production location where the RNR produce are collected from the farmers/producers to bulk up to transport to the processing plant or markets. Collection shed It is a simple structure that comes in a wide range of sizes, rooflines and siding options basically to offer growers with a space to temporarily store their RNR produce to be further marketed / dispatched to the processing unit/ value addition room / farm shops. Dry land Generally agricultural land where crops are grown without irrigation or on rain-fed. Dzongdag Administrative Head of Dzongkhag Dzongkhag District (there are 20 Dzongkhags in the country; 6 in eastern region where CARLEP will predominantly invest) Dzongkhag Tshogdu (DT) District Council Farm shop A Farm Shop is a business model that offers customers the convenience of having multiple needs met in one location. The presence of three distinct services best define the farm shop namely the buy back guarantee, farming inputs and groceries. Farmers’ groups Farmers group means a group of not less than three (3) members deriving economic benefits from one or more economic enterprises related to Renewable Natural Resource Sector Farmers’ cooperatives Cooperative is defines as one where a minimum of fifteen (15) natural persons who are Bhutanese citizens with common bond of interest in the area of operation of cooperative, join or organize to realize common economic needs of the members and communities by engaging in any of the business activities in production, processing, manufacturing, supply and marketing and financing. Gewog Block (sub-district) (there are 205 gewogs in the country; 70 gewogs in the 6 eastern Dzongkhags) Gewog Tshogde (GT) Block Council Gup Administrative Headed of a Gewog Lyonchhoen Prime Minister Lyonpo Minister Thromde Tshogde (TT) Municipal Council Tshogpa Village leader Household A person or group of persons operating as one economic unit, usually having a common arrangement for the preparation and consumption of food and share the same kitchen. Household head The most knowledgeable person of all the household members and one who takes decisions in the household. Household size Total number of person in the household. i Kingdom of Bhutan Commercial Agriculture and Resilient Livelihoods Enhancement Programme (CARLEP) Programme Design Report RNR sector Renewable Natural Resource (RNR) sector encompasses the administrative combination of the so- called sub-sector of agriculture-horticulture (including irrigation), livestock and forestry under one roof, and the farm and farmer level, many if not all aspects of the management of these sub-sectors are interlinked and inter-dependent. RNR products Any farm products of agriculture-horticulture, livestock including fishery, apiary and forestry. Wetland A terraced land and/or valley flat land having access to irrigation to grow paddy and other crops; there are also rain-fed wetlands that are terraced. ii Kingdom of Bhutan Commercial Agriculture and Resilient Livelihoods Enhancement Programme (CARLEP) Programme Design Report Abbreviations ADB Asian Development Bank AFD Administration and Finance Division AMC Agriculture Machinery Centre AMEPP Agriculture Marketing and Enterprise Promotion Program AOS Annual Outcome Survey ASAP Adaptation for Smallholder Agriculture Programme (IFAD) AWPB Annual Work Plan and Budget BAWE Bhutan Association of Women Entrepreneurs BCCI Bhutan Chamber of Commerce and Industries BCR Benefit Cost Ratio BLSS Bhutan Living Standards Survey (2012) BOiC Business Opportunity and Information Centre CAHW/ CoHW Community Animal Health Worker CARLEP Commercial Agriculture and Resilient Livelihoods Enhancement Programme CEO Chief Executive Officer CGIAR Consortium of International Agricultural Research CIAT International Center for tropical Agriculture CNR College of Natural Resources (Royal University of Bhutan) COSOP Country Strategic Opportunities Programme (IFAD) CSA Climate Smart Agriculture CSO Civil Society Organisation CVCA Climate Vulnerability and Capacity Analysis DAMC Department of Agriculture Marketing and Cooperatives DLG Department of Local Governance DoA Department of Agriculture DoFPS Department of Forestry and Park Service DoL Department of Livestock DoT Department of Trade DT District Council EA Extension Officers EFS Electric Fencing Scheme ESP Economic Stimulus Plan FAO Food and Agriculture Organisation FCBL Food Corporation of Bhutan Ltd. FMSC Farm Machinery Service Centre FYP Five Year Plan GAO Gewog Administrative Officer GDP Gross Domestic Product GNH Gross National Happiness GNHC Gross National Happiness Commission GT Block Council HH Household HRDP Horticulture Research Development Project HWC Human Wildlife Conflict ICIMOD International Centre for Integrated Mountain Development IFAD International Fund for Agriculture Development ILRI International Livestock Research Institute IRR Internal Rate of Return JICA Japan International Cooperation Agency KIPL Kofuku International Pvt. Ltd. KM Knowledge Management LPA Lead Project/Programme Agency MAGIP Market Access and Growth Intensification project MDGs Millennium Development Goals iii Kingdom of Bhutan Commercial Agriculture and Resilient Livelihoods Enhancement Programme (CARLEP) Programme Design Report MoAF Ministry of Agriculture & Forests MoEA Ministry of Economic Affairs MoF Ministry of Finance MoHCA Ministry of Home and Cultural Affairs M&E Monitoring and Evaluation MTR Mid Term Review NNBF National Nublang Breeding Farm NPD National Programme Director NPSC National-level Programme Steering Committee NPV Net Present Value NSB National Statistical Bureau NSC National Seed Centre NWFP Non-Wood Forests Products NYP National Youth Policy (2010) O&M Operation and Maintenance OPM Office of Programme Management OSC Operational Strategy and Policy Guidance Committee (IFAD) OSFS One stop Farmers Shop PCR Programme Completion Report PlaMS Planning and Monitoring System PPD Policy and Planning Division PPP Public Private Partnership RAMCO Regional Agriculture Marketing
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