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Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 54332-ML PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 46.2 MILLION (US$ 70 MILLION EQUIVALENT) AND Public Disclosure Authorized A PROPOSED GRANT FROM THE EUROPEAN UNION FOOD CRISIS RAPID RESPONSE FACILITY TRUST FUND IN THE AMOUNT OF EUR14.64 MILLION AND PROPOSED GRANT FROM THE GLOBAL ENVIRONMENT FACILITY TRUST FUND IN THE AMOUNT OF US$ 6.2 MILLION Public Disclosure Authorized TO THE REPUBLIC OF MALI FOR A FOSTERING AGRICULTURAL PRODUCTIVITY PROJECT May 6, 2010 Agricultural and Rural Development Sustainable Development Department Africa Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective March 31, 2010) Currency Unit = FCFA FCFA485 = US$1 US$1 = SDR0.658 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS AASC Agricultural Advisory Service Council ACDP Agricultural Competitiveness and Diversification Project AfD Agence Française de Développement (French Development Agency) AfDB African Development Bank AGETIER Agence d’Éxécution des Travaux d’Infrastructures et d’Équipements Ruraux (Executing Agency for Rural Equipment and Civil Works) APCAM Assemblée Permanente des Chambres d’Agriculture du Mali (Permanent Assembly of Mali Agricultural Chambers) APL Adaptable Program Loan ARD Agriculture and Rural Development BSI Budget Spécial d’Investissement (Special Investment Budget) CAADP Comprehensive Africa Agriculture Development Program CAS Country Assistance Strategy CBA Cost-Benefit Analysis CENA Capacity Enhancement Needs Assessment CGSP Contrôle Général des Services Publics (GoM’s internal audit) CNRA Comité National de la Recherche Agricole (National Agricultural Research Committee) CNOP Coordination Nationale des Organisations Paysannes (National Coordination of Producer Organizations) COSOP (IFAD) Country Strategic Opportunities Program CPS Cellule de Planification et de Statistiques (Statistics and Planning Unit) CQBS Consultants’ Qualifications-Based Selection CRA Chambre Régionale d’Agriculture (Regional Chamber of Agriculture) CRCE Comités Régionaux de Concertation et d’Échanges (Consultation and Dialogue Regional Committes) CROCSAD Comité Régional d’Orientation, de Coordination et de Suivi des Actions de Développement (Regional Steering Committee for the Coordination and Monitoring of Development Operations) CSA Commissariat à la Sécurité Alimentaire (Food Security Commissariat) CSIF Comprehensive Strategic Investment Program CTCE Comité Technique de Coordination et d’Exécution (Technical Execution Coordination Committee) DAF Direction Administrative et Financière (Financial and Administrative Division) i DNACPN Direction Nationale de l’Assainissement et du Contrôle des Pollutions et Nuisances (Sanitation, Pollution and Nuisance Control National Division) DNRFFH Direction Nationale des Ressources Forestières, Fauniques et Halieutiques (Halieutic, Faunistic and Forestry Resources National Division) DRACPN Direction Régionale de l’Assainissement et du Contrôle des Pollutions et Nuisances (Sanitation, Pollution and Nuisance Control Regional Division) DRGR Direction Régionale du Génie Rural (Regional Division for Rural Civil Works) EA Environment Assessment ECOWAP ECOWAS Agricultural Policy ECOWAS Economic Community of West African States ESIA Environment and Social Impact Assessment ESMF Environment and Social Management Framework EU / EC European Union / European Commission FAO Food and Agriculture Organization FM Financial Management FNAA Fonds National d’Appui à l’Agriculture (Agricultural Support National Fund) FODESA Fonds de Développement en Zone Sahélienne (Sahel Areas Development Fund) FY Fiscal Year GDP Gross Domestic Product GEB Global Environment Benefits GEF Global Environment Fund GEO Global Environment Objective GIE Groupement d’Intérêt Économique (Economic Interest Group/Co-op) GoM Government of Mali GPN General Procurement Notice GPRSF Cadre Stratégique pour la Croissance et la Réduction de la Pauvreté (Growth and Poverty Reduction Strategy Framework) GTZ Deutsche Gesellschaft für Technische Zusammenarbeit (German Technical Cooperation) Ha Hectare IAS International Accounting Standards IC Individual Consultants ICB International Competitive Bidding IDA International Development Association IER Institut d’Économie Rurale (Institute for Rural Economics) IFAD International Fund for Agricultural Development IFR Interim Financial Report IRR Internal Rate of Return KfW Kreditanstalt fur Wiederaufbau (German Development Bank) LOA Loi d’Orientation Agricole (Agricultural Framework Law) LCS Least Cost Selection LSIPT Livestock Sector Investment and Policy Toolkit MCC Millennium Challenge Corporation MinAgri Ministry of Agriculture MEA Ministère de l’Environnement et de l’Assainissement (Ministry of Environment and Sanitation) MFI Micro-Finance Institution ii M&E Monitoring and Evaluation MTEF Mid-Term Expenditure Framework NAPA National Action Plan for Adaptation NARS National Agricultural Research System NCB National Competitive Bidding NEPAD New Partnership for African Development NPV Net Present value NSC National Steering Committee – PNISA O&M Operations and Maintenance OIE Office International des Epizooties (World Animal Health Organization) OMA Observatoire des Marchés Agricoles (Agricultural Market Observatory) ON Office du Niger PACR Programme d’Appui aux Communautés Rurales (Rural Community Development Project) PASAM Programme d’Appui au Secteur Agricole au Mali (Agricultural Sector Support Program in Mali) PASAOP Programme d’Appui aux Services Agricoles et aux Organisations Paysannes (Agricultural Services and Producer Organizations Program) PASSIP Programme d’Appui au Sous-Secteur de l’Irrigation de Proximité (Small-Scale Irrigation Promotion Program) PFM Public Financial Management PCDA Projet Compétitivité et Diversification Agricole (Agricultural Competitiveness and Diversification Project) PDI-BS Programme de Développement de l’Irrigation dans le Bassin du Bani et à Sélingué (Irrigation Development Program for the Bani and Sélingué Basins) PDO Project Development Objective PDZL Programme de Développement des Zones Lacustre (Lacustre Areas Development Program) PER Public Expenditure Review PIDRN Programme Intégré de Développement Rural du Nord (Northern Integrated Rural Development Program) PIM Project Implementation Manual PIU Project Implementation Unit PIV Périmètre Irrigué Villageois (Village Irrigation Perimeter) PMP Pest Management Plan PNIR Programme National d’Infrastructures Rurales (National Rural Infrastructure Project) PNISA Programme National d’Investissement Sectoriel Agricole (National Agricultural Sector Investment Program) PO Producer Organization PPM Petit Périmètre Maraîcher (Small Scale Irrigation Perimeter for vegetable production) PPP Public-Private Partnership PRSC Poverty Reduction Support Credit PTF-EAR Groupe des Partenaires Techniques et Financiers – Économie Agricole et Rurale (Financial and Technical Partners for Agricultural and Rural Economy) PVS Performance of Veterinary Services QBS Quality-Based Selection (QBS) QCBS Quality- and Cost-Based Selection RCRE Regional Committees for Research and Extension ReSAKSS Regional Strategic Analysis and Knowledge Support System iii RAP Resettlement Action Plan REI Request of Expression of Interest RPF Resettlement Policy Framework SAM Social Accounting Matrix SAPI Sécurité Alimentaire par les Périmètres Irrigués (Food Security through Irrigation Perimeters) SBD Standard Bidding Documents SEDIZON Secrétariat d’État pour le Développement Intégré de la Zone Office du Niger (State Secretariat for the Integrated Development of the Office du Niger Area) SIL Specific Investment Loan SIP Strategic Investment program (GEF) SLWM Sustainable Land and Water Management SNFAR Stratégie Nationale de Formation Agricole et Rurale (National Strategy for Rural and Agricultural Training) SoSuMar Société Sucrière de Markala (Markala Sugar Production Company) SRI System of Rice Intensification STP/CIGQE Secrétariat Technique Permanent du Cadre Interministériel de Gestion des Questions Environnementales (Permanent Technical Secretary of the Inter-Ministerial Framework for Environmental Issues) SUKALA Complexe Sucrier du Kala Supérieur (Sugar factory of the Upper Kala) SWAp Sector Wide Approach UNCCD United Nations Convention to Combat Desertification UNDB United Nations Development Business UNDP United Nations Development Program VRES Valorisation des Ressources en Eau de Surface (Surface Water Resources Use) WAEMU West African Economic and Monetary Union WAAPP West Africa Agricultural Productivity Project Vice President: Obiageli Katryn Ezekwesili Country Director: Habib Fetini Sector Director Inger Andersen Sector Manager: Karen McConnell Brooks Task Team Leader: Olivier Durand iv MALI Fostering Agricultural Productivity Project CONTENTS Page I. STRATEGIC CONTEXT AND RATIONALE ................................................................. 1 A. Country and sector issues.................................................................................................... 1 B. Rationale for Bank involvement ......................................................................................... 1 C. Past and current Bank support to agriculture and rural development: ...............................