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Project Appraisal Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: PAD1001 PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT Public Disclosure Authorized IN THE AMOUNT OF SDR 319.7 MILLION (US$495.3 MILLION EQUIVALENT) TO THE FEDERAL REPUBLIC OF NIGERIA FOR TRANSFORMING IRRIGATION MANAGEMENT IN NIGERIA PROJECT Public Disclosure Authorized May 27, 2014 Agriculture, Rural Development and Irrigation (AFTA1) Sustainable Development Department Country Management Unit AFCW2 Africa Region This document has a restricted distribution and may be used by recipients only in the Public Disclosure Authorized performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective April 30, 2014) Currency Unit = Naira NGN 162.1 = US$ 1 US$ 1.54969 = SDR 1 GOVERNMENT FISCAL YEAR January 1 – December 31 Weights and Measures Metric System ABBREVIATIONS AND ACRONYMS ADP Agricultural Development Program AEHE Agricultural Equipment Hiring Enterprise AfDB African Development Bank AgDPO Agriculture Sector Development Policy Operation ARCN Agricultural Research Council of Nigeria ATA Agriculture Transformation Agenda ATIC Agriculture Transformation Implementation Council AWF African Water Facility BES Budget Execution System BP Business Policy BIS Bakolori Irrigation Scheme CADP Commercial Agriculture Development Project CBN Central Bank of Nigeria CDD Community-Driven Development CFAA Country Financial Accountability Assessment CMC Change Management Committee CME Chief Minister of the Economy CMO Catchment Management Office CMP Catchment Management Plan CNA Community Needs Assessment CPS Country Partnership Strategy CSO Civil Society Organization DA Designated Accounts DCGE Dynamic Computable General Equilibrium DFID UK Department for International Development DKIS Dadin Kowa Irrigation Scheme DPL Development Policy Loan DROD Dams & Reservoir Operations Department EA Environmental Assessment ii EAP Emergency preparedness Action Plan ECOWAS Economic Community of West African States EFCC Economic and Financial Crimes Commission EIT Extractive Industries Transparency Initiative EMT Economic Management Team ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan EU European Union FAO Food and Agriculture Organization of the United Nations FGN Federal Government of Nigeria FM Financial Management FMARD Federal Ministry of Agriculture and Rural Development FMC Farmers’ Management and Service Delivery Center FMEnv Federal Ministry of Environment FMF Federal Ministry of Finance FMWR Federal Ministry of Water Resources FRL Fiscal Responsibility Law GDP Gross Domestic Product GEMS Growth and Employment in States GES Growth Enhancement Scheme GIFMIS Government Integrated Financial Management Information System GIS Global Information System GNP Gross national Product GoN Government of Nigeria GR Asian Green Revolution HA Hydrological Area Ha Hectare H-JKYB Hadejia-Jama’are-Komadougou–Yobe Basin HNW Hadeija-Nguru Wetlands HVIS Hadejia-Jama’are Valley Irrigation Scheme IBRD International Bank for Reconstruction and Development ICB International Competitive Bidding ICT Information and Communications Technology IDA International Development Association IFC International Finance Corporation IFPRI International Food Policy Research Institute IFR Interim Financial Report IMA Irrigation Management Association IMF International Monetary Fund IPF Investment Project Financing iii IPPT Inter-ministerial Project Preparation Team IR Intermediate Results ISP Implementation Support Plan ISR Implementation Status and Results Report ITRC Irrigation Training Research Center IUCN International Union for the Conservation of Nature IWMI International Water Management Institute IWRM Integrated Water Resources Management JICA Japan International Cooperation Agency KRIS Kano River Irrigation Scheme LCBC Lake Chad Basin Commission LDP Letter of Development Policy LGs Local Governments LGCs Local Government Councils LSMS Living Standard Measurement Study LUA Land Use Act LUAC Land Use Allocation Committee MDG Millennium Development Goal M&E Monitoring and Evaluation MGM Matching Grant Mechanism MIS Management Information System MOF Ministry of Finance MOU Memorandum of Understanding MRVIS Middle Rima Valley Irrigation Scheme MTEF Medium-Term Expenditure Framework NBA Niger Basin Authority NBS National Bureau of Statistics NCA National Council on Agriculture NCB National Competitive Bidding NCWR National Council on Water Resources NEPAD New Partnership for Africa’s Development NEWMAP Nigeria Erosion and Watershed Management Project NGO Non-Governmental Organization NIC National Irrigation Commission NIHSA Nigeria Hydrological Services Agency NIMET Nigeria Meteorological Agency NIP National Implementation Plan NIPN National Irrigation Policy for Nigeria NIRSAL Nigerian Incentive-based Risk Sharing for Agricultural Lending NIWRMC Nigeria Water Resources Management Commission O&M Operations and Maintenance iv OP Operational Policy ORAF Operational Risk Assessment Framework PAD Project Appraisal Document PDO Project Development Objective PER Public Expenditure Review PFM Public Financial Management PHRD Policy and Human Resources Development PIM Participatory Irrigation Management PIMM Project Implementation Management Manual PMU Project Management Unit PoE Panel of Experts PPP Public-Private Partnerships PREM Poverty Reduction and Economic Management Network PS Permanent Secretary PSC Project Steering Committee RAMP II Nigeria’s Rural Access and Mobility Project R&D Research and Development RBDA River Basin Development Authority RBMC River Basin Management Commission ROSC Report on the Observance of Standards and Codes RPF Resettlement Policy Framework RTGS Real Time Gross Processing System SBD Standard Bidding Document SCPZ Staple Crop Processing Zones SDR Special Drawing Rights SFPZ Staple Food Processing Zones SIL Specific Investment Loan SoSP Statement of Sector Policy SPRI Small-scale Private Irrigation Schemes SRFP Standard Request for Proposal SRRBA Sokoto-Rima River Basin Authority S-RSB Sokoto-Rima Sub-Basin TA Technical Assistance TRIMING Transforming Irrigation Management in Nigeria UBRBA Upper Benue River Basin Authority UNDP United Nations Development Program WHO World Health Organization WRB Water Resources Bill WRC Water Regulatory Commission WUA Water User Association WUAF Water User Association Federation v Regional Vice President: Makhtar Diop Country Director: Marie Francoise Mary-Nelly Sector Director: Jamal Saghir Sector Manager: Martien van Nieuwkoop Task Team Leader: David Casanova Co – Task Team Leader: Soulemane Fofana vi NIGERIA Transforming Irrigation Management in Nigeria (TRIMING) Project Page I. STRATEGIC CONTEXT .................................................................................................1 A. Country Context ............................................................................................................ 1 B. Sector and Institutional Context.................................................................................... 2 C. Higher Level Objectives to which the Project Contributes .......................................... 6 II. PROJECT DEVELOPMENT OBJECTIVE ..................................................................7 A. PDO............................................................................................................................... 7 B. Project Beneficiaries ..................................................................................................... 8 C. PDO Level Results Indicators ....................................................................................... 8 III. PROJECT DESCRIPTION ..............................................................................................9 A. Project Components ...................................................................................................... 9 B. Project Financing ........................................................................................................ 19 C. Lessons Learned and Reflected in the Project Design ................................................ 20 IV. IMPLEMENTATION .....................................................................................................21 A. Institutional and Implementation Arrangements ........................................................ 21 B. Results Monitoring and Evaluation ............................................................................ 23 C. Sustainability............................................................................................................... 23 V. KEY RISKS AND MITIGATION MEASURES ..........................................................24 VI. APPRAISAL SUMMARY ..............................................................................................25 A. Economic and Financial Analyses .............................................................................. 25 B. Technical ..................................................................................................................... 27 C. Financial Management ................................................................................................ 28 D. Procurement ................................................................................................................ 28 E. Social (including Safeguards) ....................................................................................
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