world bank document...the world bank senegal inclusive and sustainable agribusiness development...

The World BankSenegal Inclusive and Sustainable Agribusiness Development Project (P124018)

REPORT NO.: RES30292

RESTRUCTURING PAPERON A

PROPOSED PROJECT RESTRUCTURING

OF

SENEGAL INCLUSIVE AND SUSTAINABLE AGRIBUSINESS DEVELOPMENT PROJECT

APPROVED ON DECEMBER 19, 2013

TO

REPUBLIC OF SENEGAL

AGRICULTUREAFRICA

Regional Vice President: Makhtar Diop Country Director: Louise J. Cord

Senior Global Practice Director: Juergen VoegelePractice Manager/Manager: Marianne Grosclaude

Task Team Leader: El Hadj Adama Toure

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ABBREVIATIONS AND ACRONYMS

ANGMV National Agency for the Great Green Wall (Agence Nationale de la Grande Muraille Verte)APIX Private Investment Promotion Agency (Agence de Promotion des Investissements et des Grands

travaux)CFAHS Horticulture Inter-profesionnal Federation (Coopération Fédérative des Acteurs de l’Horticulture du

Sénégal)DGID General Directorate of Taxes and Land Administration (Direction Générale des Impôts et Domaines) ERR Economic Rate of ReturnFFI Investment Facilitation Firm (Firme de Facilitation des Investissement du PDIDAS)GEF Global Environment FundGoS Government of SenegalIDA International development AssociationMoU Memorandum of UnderstandingMTR Mid-Term reviewNICAD Cadastral Identification Number (Numéro d’Identification CAdastrale)NPV Net Present ValueOLAC Surface Water Office (Office des Lacs et Cours d’Eau)OMVS Organization for the Development of the Senegal River Valley (Organisation pour la mise en valeur du

fleuve Sénégal)PCU Project Coordination UnitPDO Project Development ObjectivePSC Project Steering CommitteeRAI Responsible Agriculture InvestmentRPF Resettlement Policy FrameworkSAED Agency for the Development of the Sénégal Delta and the Senegal and Faleme River valleys (Société

d’Aménagement et d’Exploitation des terres du Delta du Fleuve Sénégal et des vallées du fleuve Sénégal et de la Falémé)

SLWM Sustainable Land and Water ManagementSME Small and Medium EnterpriseTOR Terms of referenceUGB Gaston Berger University (Université Gaston Berger de Saint Louis)


BASIC DATA

Product Information

Project ID Financing Instrument

P124018 Investment Project Financing

Original EA Category Current EA Category

Full Assessment (A) Full Assessment (A)

Approval Date Current Closing Date

19-Dec-2013 31-Dec-2019

Organizations

Borrower Responsible Agency

Republic of Senegal Ministry of Agriculture and Rural Equipment

Project Development Objective (PDO)

Original PDOThe Project Development Objective is to develop inclusive commercial agriculture and sustainable land management in project areasOPS_TABLE_PDO_CURRENTPDOSummary Status of Financing

Ln/Cr/Tf Approval Signing Effectiveness ClosingNet

Commitment Disbursed Undisbursed

IDA-53340 19-Dec-2013 28-Mar-2014 26-Jun-2014 31-Dec-2019 80.00 14.86 58.59

TF-16708 28-Mar-2014 28-Mar-2014 26-Jun-2014 31-Dec-2019 6.00 1.36 4.64

Policy Waiver(s)

Does this restructuring trigger the need for any policy waiver(s)?No


I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING

A. Summary

1. This Project Paper seeks the approval of the restructuring of the Senegal Inclusive and Sustainable Agribusiness Development Project (P124018; Credit No.53340-SN) and its blended Global Environment Facility (GEF) window (P130271; Grant TF16708), at the request of the Government of Senegal in a letter dated January 22, 2018. The proposed restructuring would (i) strengthen the alignment of the project’s land tenure transaction model with the Government’s legal framework on land administration; and (ii) accelerate project implementation by simplifying activities and mainstreaming their implementation into five core programs with clear performance targets and milestones. Those are (a) Support to Communes on land transactions, (b) Support to Communities' productive activities including through partnerships with agribusinesses operating in the area, (c) Development of irrigation infrastructure, (d) Sustainable land and water management (SLWM) including forests’ and conservation areas’ management in participating communes, and (e) Matching Grants to unlock technical financing constraints for producer associations and agribusiness SMEs operating in the project’s intervention areas.

2. The proposed restructuring includes: (i) revisions of the project’s land transaction model around which core project activities, including irrigation infrastructure and community partnerships with private investors, were initially designed; (ii) a reduction in project activities and cost reallocations across components and sub-components with no reallocation of IDA credit or GEF grant between categories of expenditures, and the related adjustments to disbursement estimates; and (iii) revisions of the project’s Results Framework to reflect the reduced scope of project activities. In addition, the Bank and government team have agreed during the project’s mid-term review on further improvements of institutional arrangements, clarifying roles and responsibilities among the implementing partners in carrying out the revised activities and related implementation plans, and on the updated economic and financial analysis which confirms the soundness of the project design and likeliness of achieving its development objectives.

3. Further adjustments to the project’s costs and implementation timeline might be necessary (e.g. extension of closing date with partial cancellation), provided the project keeps on track in delivering as per the revised Result Framework, and once procurement for major contracts related to irrigation works have been completed.

B. Project status

4. Project description. The Project Development Objective (PDO) is to develop inclusive commercial agriculture and sustainable land management in the project areas. The total project cost is estimated at US$ 86 million, financed by a credit from the International Development Association (IDA) of US$ 80 million and a grant from the Global Environment Facility (GEF) of US$ 6 million. The project is an environmental safeguards Category A.

5. The project consists of the following three components:

Component 1: Support to sector actors (GEF: US$2.5 million; IDA: US$8.5 million). This component supports rural communities in the project areas to ensure land users rights are allocated to private operators in an inclusive and sustainable way and to small-scale farmers for the establishment of producers’ associations and business partnerships with large investors (subcomponent 1.1). It also provides vocational training and applied research to small-scale farmers and Small and Medium Enterprises (SMEs) on Sustainable Land and Water Management (SLWM) practices and support to private agribusiness investors as well as the rehabilitation of the


“Mpal agropole”, an infrastructure built by the Government with the support of the Spanish cooperation agency in the early 2000s and composed of a fresh produce cold storage facility and a slaughterhouse that has not operated since its establishment (subcomponent 1.2). The component also supports the implementation of the land management process (subcomponent 1.3).

Component 2: Development of irrigation infrastructure and sustainable natural resources management (GEF: US$3 million; IDA: US$65.5 million). This component finances public irrigation infrastructure (design, construction and equipment of critical primary and secondary canals) in the Ngalam Valley and around Lac de Guiers (subcomponent 2.1). It provides matching grants to small-scale farmers and SMEs for tertiary irrigation infrastructure, business development services and training (subcomponent 2.2). The component also supports the implementation of an inclusive landscape management approach supportive of sustainable land practices on agricultural and non-agricultural land in the project intervention areas (subcomponent 2.3).

Component 3: Project Coordination, Management, Communication, Monitoring and Evaluation (GEF: US$0.5 million; IDA: US$6 million). This component supports the operation of the Project Coordination Unit (PCU) and capacity building for project staff in the different implementing agencies (subcomponent 3.1). It also supports the coordination of monitoring and evaluation activities performed by the technical implementing agencies (subcomponent 3.2).

6. Implementation status. The project has faced several difficulties that have slowed down its implementation. First, uncertainties have raised around the land transaction model that was envisioned during the preparation of the project (a land “lease/sub-lease” model). The level of security of tenure that this model could allow has been questioned, preventing private sector to engage in project activities. Those uncertainties have impeded the implementation of most of the project’s activities, including the implementation of the irrigation infrastructure program, that required the establishment of a different model for secure land transactions.

7. Second, project implementation was affected by inefficiencies in managing and coordinating implementing partners at the level of the Project Coordination Unit (PCU). For instance, the PCU has not been able until recently to mobilize and coordinate the necessary technical expertise within the implementation agencies (namely, the Investment Facilitation Firm - FFI 1, the Senegal River Valley Irrigation Development Agency - SAED, and the Investment Promotion Agency - APIX) in order to complete the package for the call for proposals from private investors, and to complete the irrigation infrastructure related studies. Furthermore, the PCU (based in St-Louis, 265 km up north of Dakar, the capital city) recorded high turnover of its core staff, attributable to weak incentives to retain high caliber experts away from the capital city. The lengthy process for their replacement has drastically impacted the implementation of key activities. Lack of quality control of the feasibility studies for the irrigation infrastructure by SAED, due to insufficient experience of the personnel the agency has dedicated to the project implementation unit has also slowed down project implementation. Finally, the project’s implementation was also affected by inefficient and unnecessary procedures at the PCU level slowing down communication and decision making among staff and with implementing agencies.

8. As a result of these shortcomings, the project is far from its targets with regards to key performance indicators as set in the project’s results framework, and disbursement rates remain very low for both the IDA Credit and the blended GEF grant (they were of 14 percent and 19.66 percent, respectively in June 2017). The project’s performance rating is currently unsatisfactory for both progress towards achieving the project’s development objectives (DO) and overall implementation progress (IP).2

1 A competitively selected firm hired to support inter alia communities in establishing land banks (‘offres foncières’) and facilitate negotiations among community members, and between communities and private investors over land transactions2 See Implementation Status Report # 7, June 2017.


9. The project’s mid-term review was completed on November 15, 2017 following an agreement with the Government on the revised land transaction model, which had been holding back project implementation progress for more than two years. The mid-term review (MTR) mission noted that substantial progress has been made by the PCU and executing agencies in implementing recommendations and agreements reached during the 5th implementation support mission in June 2017, and consisting of (i) deepening consultations at the local level on the revised land transaction model; (ii) and restructuring project activities to speed up implementation.

10. Although the project has not achieved much yet with regards to key performance indicators, important actions have been undertaken to solve the difficulties that have slowed down implementation. Under Component 1, support to the communes on land transactions and to the Land Bureaus has been intensified. The project is starting to yield transformational effects with the implementation of the land regularization activities. Following the decision to delink project support to communities from private investments, a dedicated support program to communities has been designed. The detailed technical study for the irrigation primary canal has been completed and the first batch of the matching grants has been launched for 20 subprojects (Component 2). The MTR identified challenges and impediments to achieving the PDO and speeding up implementation of the project’s activities. A detailed action plan through project closing (including the reorganization of the roles and responsibilities of executing agencies) has been agreed upon to fast-track implementation of activities under the revised land transaction model, and to simplify the project’s execution focusing the activities around five core programs : (1) Support to Communes on land transactions, (2) Development of Irrigation Infrastructure, (3) Support to Communities' productive activities including through partnership with agribusinesses operating in the area, (4) Sustainable Land and Water Management including Forest and Conservation Areas Management, (5) and Matching Grants.

11. Significant progress has been achieved since the mid-term review with regards to the key elements contributing to the PDO, with important steps taken by the Government to resolve the issue on the land transaction model and to accelerate project investments, with the following achievements:

a. Under Component 1, 5,600 plots have been surveyed and mapped by the project’s land registration team with technical support from the regional branches of the General Directorate of Taxes and Land Administration (DGID in French), out of which 2,080 have completed the Deliberation stage by the Communal Councils, and are awaiting the issuance of a unique Cadastral Identification Number (NICAD in French) by DGID. As a result, communes have recorded an unprecedented number of requests for plot registration (23,800 applications filed by May 31, 2018, against 17,000 at the MTR in November 2017). In addition, the first call for proposals was launched in February 2018 and 21 agribusiness companies have participated, including all major operators already active in the project areas, and which had not participated in the first round over the issue of the lease/sublease model;

b. Under Component 2, the detailed technical design of the irrigation infrastructure has been finalized, the bidding process for one of the two lots has been completed and the related contract has been awarded. The PCU is awaiting the conclusion of the environmental and social impacts assessments3 to kick off activities on the ground, and the detailed implementation studies for the first batch of 20 subprojects under Subcomponent 2.2 have been reviewed and are being completed by the PCU and the technical assistance firm. Also pending contracts regarding the forest management plans have been signed and consultants hired.

c. Under Component 3, most procurement related activities under the PCU has been transferred to implementing agencies (SAED and ANGV) and the scope of work of the FFI has been focused on technical

3 Draft report including environmental management plan and resettlement plans if any, due by July 15


assistance to the rural communities. Also, the filling of vacant positions is being undertaken though not fully completed yet.4

12. Regarding environmental and social safeguards, the project has not yet carried out any activity that would have a significant physical impact. Some challenges remain however, which will require follow up, including the conclusion of the dam safety study (a legal covenant that the project has not yet complied with) and the finalization of the related management plans by the Organization for the Development of the Senegal River Valley (OMVS), as well as the launch of the Senegal River Delta strategic environmental audit. The dam safety study has suffered from delayed approval of the consultant’s contract while the environmental audit was pending clarification on the leadership and roles and responsibilities of key public institutions in charge of water management in the Senegal River Delta. The MTR assessed those issues with the concerned parties and made recommendations which helped make important steps in resolving them. The contract for the dam safety study has been approved and the study started in April 2018, while agreement has been reached on the Terms of Reference (TORs). The process for selecting the consultant for the environmental audit was launched under the oversight of a steering committee involving (a) the Department of Environment and Classified Establishments under the Ministry of Environment and Sustainable Development, in charge of supervising environmental safeguards, (b) SAED, (c) the Surface Water Office (OLAC) recently tasked by the Government of Senegal to oversee water resources management and development across the country, and (d) the OMVS - the Senegal River Valley multilateral authority established by the riparian countries.

C. Rationale for restructuring

13. To address the challenges mentioned above and following the conclusion of the MTR, the Government of Senegal (GoS) has requested in a letter dated January 22, 2018, a restructuring of the project.

14. The main objectives of the restructuring are to (i) align the project with the revised land tenure security model; and (ii) accelerate the implementation of project activities. Before and during the MTR of the project, the World Bank has reviewed the new land tenure security model with the Government team and key stakeholders, including the private sector, communities and involved communes, and found it adequate to meet the objectives of the project, which consist of promoting inclusive and sustainable private investments driving agribusiness development in the project areas. The new model provides a high level of land use right security to investors, while minimizing the risk of land grabbing by safeguarding a community-led land identification and allocation process. In order to improve project performance, the Bank and the Government teams have further agreed to simplify project activities and to facilitate their implementation by clustering them around the following five core programs: (1) Support to Communes on land transactions, (2) Development of Irrigation Infrastructure, (3) Support to Communities' productive activities including through partnership with agribusinesses operating in the area, (4) Sustainable Land and Water Management including Forest and Conservation Areas Management, (5) and Matching Grants. The MTR has further clarified the roles and responsibilities of the PCU as well as those of implementing agencies.

II. DESCRIPTION OF PROPOSED CHANGES

15. The proposed Level 2 restructuring would involve changes in (i) the results framework, (ii) components and costs, (iii) disbursement estimates, (iv) institutional arrangements, (v) the economic and financial analysis, and (vi) the technical

4Pending hiring of the financial management specialist who resigned in February 2018, but hiring process for his replacement is at final stage with interviews of preselected candidates.


analysis. The original PDO, to develop inclusive commercial agriculture and sustainable land management in the project areas, would remain unchanged. The project would also remain classified as environmental safeguards Category A.

16. While there is no change in the project’s safeguards instruments, the Annex 10 of the Resettlement Policy Framework (RPF) which refers to the project’s Land Framework will be updated with reference to the revised Land Framework agreed with the Government and submitted through a letter dated of October 13, 2017 by the Ministry of Economy, Finance and Planning, and redisclosed publicly.

A. Change in Results Framework

17. The Results Framework has been revised to:

a. Adjust PDO indicators: removal of indicators depending on external factors over which the project has no control (such as the value of commercialized agricultural products that depends on the national and international prices on which the project has no influence).

b. Reflect the adjustments made with regards to land related activities. Indicators were added to the results framework to monitor the different activities related to land tenure registration.

c. Adjust performance targets, in particular on volume of production, to take into account the implementation delays with regards to irrigation infrastructures particularly.

B. Change in Components and Costs

18. The proposed restructuring aims at (i) aligning it with the revised land transaction model (named "Déliberation Sécurisée" with user right certificate issued by the commune protected with a national cadaster number in the Ministry of Finance’s Land Database, and a Memoradum of Understanding (MoU – “Accord Cadre” including a "cahier des charges") signed between the mayors and the investors; and (ii) simplifying activities and mainstreaming their implementation into five core programs with clear performance targets and milestone.

19. The three original components would remain the same (1. Support to sector actors, 2. Development of irrigation infrastructures and sustainable management of natural resources, 3. Project coordination, management, communication, monitoring and evaluation). However, to accelerate project implementation, activities have been prioritized around the following five core programs: those are (1) Support to Communes on land transactions, (2) Development of irrigation infrastructure, (3) Support to Communities' productive activities including through partnerships with agribusinesses operating in the area, (4) Sustainable Land and Water Management including Forest and Conservation Area Management, (5) and Matching Grants. Table 1 below summarizes the linkages between those five programs and project subcomponents and indicates the implementing agencies involved for each of them.

TABLE 1: PROJECT SIMPLIFIED PROGRAMS OF ACTIVITIES AND CORRESPONDING SUBCOMPONENTS AND IMPLEMENTING AGENCIES

Program of activities Lead Implementing Agencies (and focal points within the PCU)

Corresponding changes in subcomponents/activities

Program#1: Support to Communities’ productive activities including through partnerships with agribusiness operating in the area

Investment Facilitation Firm (PCU SLWM Specialist/M&E specialist as back up)

Subcomponent 1.1: activities towards Rural Communities will be delinked from private sector investments and strengthenedSubcomponent 1.2: focus on support to private agribusiness investors through APIX. Other activities will be finalized and closed

Program#2: Support to Communes on land transaction with Investors

The PCU leading the land registration programs, with APIX leading the land transaction process

Reorganization of Subcomponent 1.3 to align with the new Land Framework


with private investors (Project Land Administration specialist)

Program#3: Irrigation infrastructure SAED (Project Irrigation Specialist) Subcomponent 2.1: changes in the scope of the infrastructuresProgram#4: Sustainable Soil and Land Management (including forest and conservation areas)

ANGMV (PCU - SLWM Specialist) Subcomponent 2.3: no changes in the activities but changes in the institutional arrangements for implementing these activities

Program#5: Matching grants (PCU - SLWM and M&E Specialists) Subcomponent 2.2: no changes in the activities but changes in the institutional arrangements for implementing these activities

20. To improve coordination and increase implementation efficiency, more responsibilities will be given to the technical implementation agencies (see. Part D). Annex 1 provides a detailed description of the proposed changes.

21. Ongoing activities that are not included in these five programs will be finalized and closed, mostly activities under subcomponent 1.2 (e.g. with Gaston Berger University, with the Horticulture Inter-Professional Cooperation, and with the Direction of Horticulture). The rehabilitation of the Mpal agropole (initially envisioned under Component 1.2) will be replaced by a feasibility study for a new agropole in the North (Agropole Nord), aligned with the country’s new long-term development plan (Plan Senegal Emergent-PSE, adopted by the Government in 2014, i.e. after project approval).

22. The reorganization of project activities implies adjustments to project costs across activities and components. These adjustments are proposed to:

a. Support the activities related to the land registration system that are already yielding transformational effects both at the local and national level, linking the Commune Land Registration System to the national Cadaster System and paving the road to a national Universal Cadaster System;

b. Start project support to communities’ productive activities. It was agreed to delink project support in that regards from private investments considering that those will take place only after key irrigation infrastructure works have started, and given the lapsed time in implementing the infrastructure programs;

c. Focus the activities on irrigation around key infrastructures. The irrigation program has been retrofitted to consider only critical investments that support the targeted level of water service in the project areas, optimizing project investments taking into consideration works done under previous projects, and minimizing environmental and social impacts. This change was informed by detailed technical feasibility studies that have been reviewed and validated during the mid-term review; and

d. Adjust the project coordination costs that were under-estimated at appraisal.

There will be no reallocation between disbursement categories nor with regards to percentage of expenditures between the IDA credit and the GEF trust fund (see Annex 2).

C. Change in Disbursement Estimates

23. Changes in disbursements estimates have been made to reflect the delays in implementing key activities and the changes proposed in activities (see Annex 2). Further adjustments to the project costs and implementation timeline might be necessary (e.g. extension of closing date and partial cancellation), provided the project keeps on track in delivering as per the revised Result Framework, once procurement for major contracts related to irrigation works have been completed.

D. Change in Institutional Arrangements

24. There is no change in the project’s management arrangements, which remain articulated around three bodies: the Project Steering Committee (PSC), the Project Coordination Unit (PCU) and the technical implementation agencies.


25. However, to increase implementation efficiency, more responsibility will be given to technical implementing agencies. Specifically, SAED has been tasked with conducting the feasibility studies of approved subprojects under the matching grants mechanism (Subcomponent 2.2). The coordination between OMVS, SAED and OLAC will also be strengthened to fasten implementation of irrigation activities and to finalize the dam safety study and the environmental study on the Senegal River Delta. Finally, the responsibility for the procurement and management of implementation of Sustainable Land and Water Management (SLWM) activities under Subcomponent 2.3 has been transferred from the PCU to the National Agency for the Great Green Wall (ANGMV).

26. The PCU will focus on the implementation of the new land transaction model, supporting the Communes in developing and improving services of their Land Bureaus. DGID and its regional branches in the project areas will play a more active role in assisting Communes, and linking the Communes Land Registration System to the national cadastral registry (NICAD). With regards to other activities, the PCU’s role will be concentrated on activities such as planning, coordinating different implementation agencies and performing strategical activities such as dialogue with key stakeholders. Within the PCU, roles were assigned to various specialists, each taking specific leadership in following up with implementing agencies on each of the five core programs.

E. Change in Economic and Financial Analysis

27. The project restructuring entails some changes in the irrigation program, focusing on key irrigation infrastructures that are consistent with the overall Senegal River Delta irrigation master plan. This implies significant changes in project costs, with anticipated savings from the irrigation infrastructure redirected to the community support program. Therefore, it will be possible to develop only 4,500 ha of irrigated land with project direct investments by the closing date, which will be divided between investors and medium and small local farmers (50/50 distribution). The investors will finance entirely the costs for the development of secondary and tertiary irrigation infrastructures. The project will finance the secondary and tertiary infrastructures for medium and small farmers over a total of 2,250 ha, while both categories should be able to extend irrigated areas from initial project investment to reach nearly 10, 000 ha within the next five years. An updated economic and financial analysis was undertaken to assess the impact of the project and the expected financial benefits for the different beneficiaries. The project is estimated to result in an Economic Rate of Return (ERR) of 15 percent with a discount rate of 10 percent5 and a Net Present Value of US$54 million. The reference scenario is conservative in terms of prices.

28. Originally, the project intended to develop 10,000 ha of irrigated land with an expected ERR of 18 percent (with a discount rate of 10 percent). The decrease in the ERR is linked to the reduction of the area with irrigation infrastructure financed by the project. This change allows to reduce drastically the costs of irrigation infrastructure within the project while leaving open the possibility for further investments by the private sector to reach 10,000 ha given the existing potentialities.

F. Change in Technical Analysis

29. The initial land allocation approach envisioned in the project to allow the development of agribusinesses in the project area was based on a lease/sub-lease contract model (lease from central government to the communes, which would then sublease to private investors). However, this model identified during the preparation of the project, encountered uncertainties during project implementation with regards to its alignment with the current Land Law (2011), and in particular given the absence of the land policy reforms that had been anticipated when the project was prepared. This legal uncertainty has delayed project implementation significantly. Following extensive consultations between the World Bank team, the Government and key stakeholders at the national and local levels, agreement has been reached to

5 A 10 percent per year discount rate was assumed as it reflects the opportunity cost of capital in Senegal and the period was set at 20 years.


revise and simplify the model. The new agreed model is fully consistent with and consolidates the project’s approach of “community-based agribusiness investment promotion”, with the communities at the forefront in voluntarily identifying designated areas for agribusiness investments, and selecting investors based on specific criteria including expected benefits to the community and compliance with sustainable management of land and water resources. The revised land transaction model envisages a secure Certificate of Occupancy or ‘Deliberation’ issued through a participatory process at the local level by the commune, and subsequently registered in the national cadaster system with a unique Cadastral Identification Number (NICAD) provided by the General Directorate of Taxes and Land Administration (DGID) within the Ministry of Economy, Finance and Planning. A tripartite Memorandum of Understanding (Cahier the Charges) will be signed between the Mayor of the Commune, the community and the investor to define each party’s roles and responsibilities, as an annex to the Deliberation issued to the investor. The Bank team has assessed this new model and found it fully in line with the project’s original approach, including the principles of community-based land tenure governance and decision making set forth in the Project Appraisal Document, and the original Land Framework, while at the same time resolving the legal uncertainties associated with the original approach. Further consultations with key stakeholders, including the community, the communes, the civil society representatives engaged in land governance issues, as well as agribusinesses with sizable investments in the project areas have shown great interest in moving forward with the new model as a way to unlock project activities to the overall benefits of local communities. The project’s “Land Framework” has been revised accordingly and the call for proposals from investors has been relaunched on this basis.

.

III. SUMMARY OF CHANGES

Changed Not Changed

Change in Results Framework ✔

Change in Components and Cost ✔

Change in Disbursement Estimates ✔

Change in Institutional Arrangements ✔

Change in Economic and Financial Analysis ✔

Change in Technical Analysis ✔

Change in Implementing Agency ✔

Change in DDO Status ✔

Change in Project's Development Objectives ✔

Change in Loan Closing Date(s) ✔

Cancellations Proposed ✔

Reallocation between Disbursement Categories ✔

Change in Disbursements Arrangements ✔


Change in Overall Risk Rating ✔

Change in Safeguard Policies Triggered ✔

Change of EA category ✔

Change in Legal Covenants ✔

Change in Financial Management ✔

Change in Procurement ✔

Change in Implementation Schedule ✔

Other Change(s) ✔

Change in Social Analysis ✔

Change in Environmental Analysis ✔

IV. DETAILED CHANGE(S)

OPS_DETAILEDCHANGES_RESULTS_TABLE

RESULTS FRAMEWORK

Project Development Objective Indicators PDO_IND_TABLE

Volume of annual agricultural outputs from project developed areasUnit of Measure: Metric tonIndicator Type: Custom

Baseline Actual (Current) End Target Action

Value 0.00 0.00 70000.00 Revised

Date 31-Dec-2013 31-May-2018 31-Dec-2019

of which annual quantity exportedUnit of Measure: Metric tonIndicator Type: Custom Breakdown


Value 0.00 45000.00 New

Date 11-Jun-2018 31-Dec-2019

of which annual quantity produced by small and medium farmersUnit of Measure: Metric tonIndicator Type: Custom Breakdown



Value 0.00 20000.00 New

Date 11-Jun-2018 31-Dec-2019

Annual value of commercial agriculture in project areasUnit of Measure: Amount(USD)Indicator Type: Custom


Value 0.00 0.00 120000000.00 Marked for Deletion

Date 31-Dec-2013 30-Nov-2017 31-Dec-2019

Of which Exports in percentageUnit of Measure: PercentageIndicator Type: Custom Supplement



Of which volumes sold by smallholders in percentageUnit of Measure: PercentageIndicator Type: Custom Supplement



Of which volumes sold by average farmers in percentageUnit of Measure: PercentageIndicator Type: Custom Supplement



Number of jobs created in project areasUnit of Measure: NumberIndicator Type: Custom



Value 0.00 0.00 4000.00 Revised

Date 31-Dec-2013 30-Nov-2017 31-Dec-2019

of which womenUnit of Measure: NumberIndicator Type: Custom Breakdown


Value 0.00 0.00 2000.00 Revised

Date 31-Dec-2013 30-Nov-2017 31-Dec-2019

of employees by large investorsUnit of Measure: NumberIndicator Type: Custom Breakdown


Value 0.00 0.00 3000.00 Revised

Date 31-Dec-2013 30-Nov-2017 31-Dec-2019

Land area where sustainable land management practices have been adopted as a result of the projectUnit of Measure: Hectare(Ha)Indicator Type: Custom


Value 0.00 0.00 5000.00 Revised

Date 31-Dec-2013 30-Nov-2017 31-Dec-2019

Number of secured land plots registered in the Land Information System (NICAD number)Unit of Measure: NumberIndicator Type: Custom


Value 0.00 15000.00 New

Date 30-Nov-2017 31-Dec-2019

Secured land area under a tripartite agreement between local authorities (Commune)/Investor/CommunityUnit of Measure: Hectare(Ha)Indicator Type: Custom



Value 0.00 4500.00 New

Date 19-Dec-2013 31-Dec-2019

Direct project beneficiariesUnit of Measure: NumberIndicator Type: Custom


Value 0.00 3343.00 6980.00 Revised

Date 31-Dec-2013 30-Nov-2017 31-Dec-2019

of which womenUnit of Measure: NumberIndicator Type: Custom Breakdown


Value 0.00 558.00 4000.00 Revised

Date 31-Dec-2013 30-Nov-2017 31-Dec-2019

of which SMEsUnit of Measure: NumberIndicator Type: Custom Breakdown


Value 0.00 5.00 30.00 Revised

Date 31-Dec-2013 30-Nov-2017 31-Dec-2019

of which small (less than 2 ha per holders, including through their associations) and medium farmers (up to 20ha)Unit of Measure: NumberIndicator Type: Custom Breakdown


Value 0.00 800.00 880.00 Revised

Date 31-Dec-2013 30-Nov-2017 31-Dec-2019

of which medium farmers


Unit of Measure: NumberIndicator Type: Custom Breakdown



Date 31-Dec-2013 30-Nov-2017 31-Dec-2019

of which wage workersUnit of Measure: NumberIndicator Type: Custom Breakdown


Value 0.00 9.00 6000.00 Revised

Date 31-Dec-2013 30-Nov-2017 31-Dec-2019

Forest area brought under management plansUnit of Measure: Hectare(Ha)Indicator Type: Custom


Value 0.00 0.00 25000.00 No Change

Date 31-Dec-2013 30-Nov-2017 31-Oct-2019

Intermediate IndicatorsIO_IND_TABLE

Target producers with use rights recorded as a result of the projectUnit of Measure: NumberIndicator Type: Custom


Value 0.00 450.00 600.00 No Change

Date 31-Dec-2013 30-Nov-2017 31-Dec-2019

of which large investorsUnit of Measure: NumberIndicator Type: Custom Breakdown




Date 31-Dec-2013 30-Nov-2017 31-Dec-2019

Number of people trained on the use of tools to secure land tenure rightsUnit of Measure: NumberIndicator Type: Custom


Value 0.00 1665.00 3000.00 New

Date 30-Nov-2017 31-May-2018 31-Dec-2019

Number of land (and conflict-related issues) management entities set in placeUnit of Measure: NumberIndicator Type: Custom


Value 0.00 45.00 New

Date 30-Nov-2017 31-Dec-2019

Percentage of land conflicts resolved through local land management entitiesUnit of Measure: PercentageIndicator Type: Custom



Date 30-Nov-2017 31-Dec-2019

Number of Land Bureaux equipped and functionningUnit of Measure: NumberIndicator Type: Custom


Value 0.00 9.00 New

Date 30-Nov-2017 31-Dec-2019

Number of Land Occupation and Use Mapping (POAS) establishedUnit of Measure: NumberIndicator Type: Custom


Value 0.00 9.00 New


Date 30-Nov-2017 31-Dec-2019

Annual performance on rural communities' scorecardUnit of Measure: NumberIndicator Type: Custom



Date 31-Dec-2013 30-Nov-2017 31-Dec-2019

Increase in private investments in project areasUnit of Measure: Amount(USD)Indicator Type: Custom


Value 0.00 0.00 30000000.00 Revised

Date 31-Dec-2013 30-Nov-2017 31-Dec-2019

of which investments in the blocksUnit of Measure: Amount(USD)Indicator Type: Custom Breakdown



Date 31-Dec-2013 30-Nov-2017 31-Dec-2019

of which investments outside the blocksUnit of Measure: Amount(USD)Indicator Type: Custom Breakdown



Date 31-Dec-2013 30-Nov-2017 31-Dec-2019

Number of beneficiaries trained on Sustainable Land and Water ManagementUnit of Measure: NumberIndicator Type: Custom


Value 0.00 5000.00 New


Date 30-Nov-2017 31-Dec-2019

Increase in the water flow of the Ngalam River courseUnit of Measure: Cubic Meter(m3)Indicator Type: Custom


Value 3.00 8.00 15.00 No Change

Date 31-Dec-2013 30-Nov-2017 31-Dec-2019

Recovery rate of fees in areas provided with water management services by the projectUnit of Measure: Amount(USD)Indicator Type: Custom


Value 66.00 100.00 New

Date 30-Nov-2017 31-Dec-2019

Area provided with irrigation and drainage servicesUnit of Measure: Hectare(Ha)Indicator Type: Custom


Value 0.00 0.00 5000.00 Revised

Date 31-Dec-2013 30-Nov-2017 31-Dec-2019

Average productivity per hectare for farmers inside the blocks for sweet potatoesUnit of Measure: Tones/yearIndicator Type: Custom



Date 31-Dec-2013 30-Nov-2017 31-Dec-2019

Average productivity per hectare for farmers inside the blocks for OnionUnit of Measure: Tones/yearIndicator Type: Custom



Date 31-Dec-2013 30-Nov-2017 31-Dec-2019


Percentage of small and medium farmers inside the blocks participating in inclusive business modelsUnit of Measure: PercentageIndicator Type: Custom



Date 31-Dec-2013 30-Nov-2017 31-Dec-2019

Number of small and medium farmers who adopted an improved agricultural technology promoted by the projectUnit of Measure: NumberIndicator Type: Custom


Value 0.00 748.00 3000.00 Revised

Date 31-Dec-2013 30-Nov-2017 31-Dec-2019

Forest area protected by boundaries and signsUnit of Measure: Hectare(Ha)Indicator Type: Custom


Value 0.00 50000.00 New

Date 30-Nov-2017 31-Dec-2019

Number of management committees for protected areas created and operationnalisedUnit of Measure: NumberIndicator Type: Custom



Date 30-Nov-2017 31-Dec-2019

Number of local conventions implemented for the management of protected areasUnit of Measure: NumberIndicator Type: Custom


Value 0.00 9.00 New

Date 30-Nov-2017 31-Dec-2019

Number of persons trained in forest inventory, mapping, GPS use and natural resources managementUnit of Measure: Number


Indicator Type: Custom


Value 0.00 250.00 New

Date 30-Nov-2017 31-Dec-2019

Number of forest trees plantedUnit of Measure: NumberIndicator Type: Custom


Value 0.00 1000000.00 New

Date 30-Nov-2017 31-Dec-2019

Carbon stored in forest ecosystems and emissions avoided from deforestation and forest degradationUnit of Measure: Metric tonIndicator Type: Custom


Value 0.00 0.00 200000.00 Revised

Date 31-Dec-2013 30-Nov-2017 31-Dec-2019

Capacity to monitor GHG emissions in project areas is demonstratedUnit of Measure: Yes/NoIndicator Type: Custom


Value No No Yes Revised

Date 31-Dec-2013 30-Nov-2017 31-Dec-2019

Global Environment Objective Indicators

GEO_IND_TABLE

Forest area under management plansUnit of Measure: Hectare(Ha)Indicator Type: Custom

Baseline Actual (Current) End Target ActionValue 0.00 0.00 25000.00 No ChangeDate 31-Dec-2013 20-Dec-2016 31-Dec-2019


OPS_DETAILEDCHANGES_COMPONENTS_TABLE

COMPONENTS

Current Component Name

Current Cost

(US$M)Action Proposed

Component NameProposed

Cost (US$M)

Component 1: Support to sector actors 12.00 Component 1: Support to

sector actors 12.00

Component 2: Development of irrigation infrastructure and natural resources management

67.50Component 2: Development of irrigation infrastructure and natural resources management

67.50

Component 3: Coordination, Impact Monitoring and Evaluation (GEF: US$0.5 million; IDA: US$6 million)

6.50

Component 3: Coordination, Impact Monitoring and Evaluation (GEF: US$0.5 million; IDA: US$6 million)

6.50

TOTAL 86.00 86.00

OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE

DISBURSEMENT ESTIMATES

Change in Disbursement EstimatesYes

Year Current Proposed

2014 2,000,000.00 2,000,000.00

2015 4,000,000.00 4,000,000.00

2016 24,000,000.00 3,000,000.00

2017 27,000,000.00 5,000,000.00

2018 17,000,000.00 25,000,000.00

2019 4,000,000.00 35,000,000.00

2020 2,000,000.00 8,000,000.00


Annex 1: Senegal inclusive and sustainable agribusiness development project – Proposed changes

Mid-term review, November 2017.

PDO : Develop inclusive commercial agriculture and sustainable land management in project areas (unchanged)Activities

Components Original Core program Proposed Changes1. Support to sector actors

1.1. Improved rural communities and small-scale farmers’ capacity

Technical assistance to rural communities in allocating land user rights to private operators following FAO’s Responsible Agricultural Investment (RAI) Principles and VGGT and promote adoption of sustainable land and water management practices (SLWM).

Structuration and strengthening capacities of farmers’ organizations.

Support to Communities’ productive activities including through partnership with agribusiness operating in the area

Title unchanged, but rural communities refer no longer to ‘Communes’, but local communities. Activities under the technical assistance program to rural communities through the Investment Facilitation Firm (FFI) will be strengthened. Given the delays in the implementation of land and irrigation activities, project support to rural communities has been delinked from private investments which will materialize at the end of the land allocation process and advancement in the irrigation works.

The Investment Facilitation Firm (FFI) will focus on this activity. A MoU will be established with the Farmers Management Center (Centre de Gestion et d'Economie Rurale -CGER) to strengthen the business and management capacities of farmers' organizations (GIEs) supported by the project which will be involved in the procurement of goods and services under this program.

1.2. Improved selected key stakeholders’ capacity

Support to APIX in promoting private sector investment in agribusiness under the project, vocational training with UGB, support to horticulture (CFPH/DHORT), Rehabilitation of Mpal Agropole

Support to Communities’ productive activities including through partnership with agribusiness operating in the area: focus on support to private agribusiness investors through APIX

Convention with UGB will be closed On-going activities with CFPH and DHORT will be finalized and closed. No new

engagement for the time left until the end of the project. The activities on Mpal Agropole will be converted into a feasibility study for the

North Agropole – horticulture cluster that is part of the national strategy PSE. Recruitment of an agribusiness consultant to support APIX in finalizing the

selection under the call for proposals and support to private agribusiness investors in the project area.

1.3. Support to land management process

Technical advisory services to support review of the policy, legal and institutional frameworks on land allocation and

Support to Communes on land transaction

Reorganization of the activity following the revision of land tenure model: Focus on strengthening Communes’ capacities in implementing the new land

registration system and regularizing existing implementation; Technical and operational assistance to DGID and its St Louis regional services to

strengthen their role in assisting Communes;


develop operational instruments, technical assistance to National Commission for Land Reform (CNRF), DGID and relevant public institutions and civil society organizations.

Support rural communities on updating mapping of agricultural land, preparing cadastral plan and designing a mechanism by which information concerning land investments are made public

ISRA/BAME to provide analytical review and document current experiences on land management.

2. Development of irrigation infrastructure and sustainable natural resources management2.1. Irrigation

infrastructure and water resources management in the project areas

Primary irrigation canal in Ngalam Valey for 5,000 ha of prime irrigated land ($23Mn)

Secondary and tertiary irrigation canals for 10,000 ha of irrigated perimeters in Ngalam Valley and Lac de Guiers area ($35.5Mn)

Rehabilitation of access roads ($2Mn)

Technical assistance to SAED and OLAG on sustainable management of water resources

Irrigation infrastructure

No major changes. However, irrigation infrastructures activities were redefined for consistency with the Delta irrigation Master Plan, and support to rural communities has been delinked form private investments.

Strengthening coordination of OMVS/SAED/OLAG to finalize the dam safety study and the environmental study on Senegal River Delta.

Primary irrigation infrastructure in Ngalam Valley to serve up to 5,500 ha of irrigated land. No change in the envelop of $23Mn;

Secondary infrastructures in Ngalam Valley, and lac de Guiers to service 6,160 ha of irrigated land, of which 2,500 ha to be equipped by the project for the communities

2.2. Matching grants Matching grants for SMEs and farmers’ organizations sub-projects

Matching grants No change to the activity. However, due to the inconclusive experience with FFI in managing feasibility studies of the first batch of subprojects, SAED has been tasked to take over and finalize related feasibility studies and investments plans.

2.3. Sustainable management of classified forest and natural reserves

Support to implementation of inclusive landscape management approach

Natural resources management (soil, water, forest and conservation areas)

No change in the activity. However, ANGMV will be fully in charge of procurement activities and contracts management, PCU overseeing the overall implementation of these activities.


Support to design and implementation of management and protection plans by local communities

3. Project coordination, management, communication, monitoring and evaluation3.1. Coordination

and Project management

Coordination by PCU of implementing agencies (SAED, APIX, ANGV, UGB, SCA/FPHS)

PCU will focus on (i) supporting Communes in the development of Land Bureaus, with technical assistance from DGID to the benefits of the Communes and (iii) and coordinating implementing agencies, including the FFI.

SAED will be strengthened and complete feasibility studies and investment plans for approved subprojects under matching grants. SAED deputy Director General will be the focal point and ensures quality control of activities delivered by SAED. These changes have been reflected in the revised MoU between SAED and the PCU.

ANGMV will be in charge of procurement and contracts management regarding activities under component 2.3 to avoid delays observed in the pre-MTR stage of the project, and fasten implementation of SLWM activities.

Ongoing activities with SCA/FPHS and UGB will be finalized and closed. New convention established with BAME on land tenure studies.

3.2. Impact monitoring and evaluation

Monitoring and evaluation by each implementing agency, consolidation of data made by PCU

Changes in the results framework to reflect project restructuring. No change in the M&E responsibilities. Impact of the new land tenure model will be captured through BAME’s study;

Economic impact, PCU will explore possible partnership with KUL that has been realizing impact studies on horticulture exports in the area since 2007.

3.3. Communication Communication and outreach strategy and implementation of communication campaigns and stakeholder’s consultations

No substantial changes, but need to adapt communication strategy to the new land tenure model and to emphasize communication towards rural communities and stakeholders, and in implementing Grievance Redress Mechanism.


Proposed budget reallocation between components (USD)

A. Reallocation between component

Component Financing gain after changes in activities (a)

Financing need after changes in activities (b)

Funding Gap/Surplus

Component 1 2,350,000 8,241,512 -2 945 756 248Component 2 12,445,012 4,420,000 4 012 506 000Component 3 2,200,000 4,333,500 -1 066 749 752 16,995,012 16,995,012 0

B. Revised budget per component

Component Initial budget (PAD) Disbursed Disbursement rateReallocation [b-a] from Table A.

Revised budget% Initial PAD

budget% revision

Component 1 11,000,000 3,808,152 35% 5,891,512 16,891,512 13% 20%Component 2 68,500,000 1,703,334 2% (8,025,012) 60,474,988 80% 70%Component 3 6,500,000 5,200,164 80% 2,133,500 8,633,500 8% 10%TOTAL 86,000,000 10,711,649 12% - 86,000,000 100% 100%

C. Revised budget per category (unchanged)Category Initial budget

PADDisbursed Disbursement

rateReallocation Revised budget GEF IDA %

GEF% IDA

Category 1 82,000,000 10,635,284 13% 0 82,000,000 6,000,000 76,000,000 7% 93%Category 2 4,000,000 76,365 2% 0 4,000,000 - 4,000,000 0% 100%TOTAL 86,000,000 10,711,649 12% - 86,000,000 6,000,000 80,000,000

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