AGRICULTURAL SECTOR PROGRAMME SUPPORT. Phase II Programme Document. Bangladesh

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1 Ministry of Foreign Affairs, Denmark Danida AGRICULTURAL SECTOR PROGRAMME SUPPORT Phase II Programme Document Bangladesh Ref. No. 104.Bang DAC May 2006

2 COVER PAGE Country: Bangladesh Programme Title: Agricultural Sector Programme Support, Phase II National Agencies: Ministry of Agriculture: Department of Agricultural Extension Ministry of Fisheries and Livestock: Dept. of Fisheries and Dept. of Livestock Services Ministry of Local Government, Rural Development and Cooperatives: Local Government Engineering Department Starting Date: 1 st October 2006 Duration 5 years Overall Budget 1 DKK 610 million (BDT 6,100 million) Danida Contribution DKK 531 million (BDT 5,310 million) GOB Contribution DKK 79 million (BDT 790 million) The Programme will have three components: Regional Fisheries and Livestock Development Component, (500,000 resource-poor households will have increased their yields and/or returns from fisheries and livestock enterprises by at least 100% by the end of the Component period and,proportion of total income from fisheries and livestock enterprises increases by at least 20% ) Agricultural Extension Component, (200 Upazilas with capacity to respond to demands across sub sectors and conduct local-level planning, Production levels increase by 10%, Income levels increase by 15%, Cropping diversification increase by factor 2 Rural Roads and Market Access Component. (20 % increase in road network being maintained, at least 2.3 million labour days generated, LCS sustained in construction and maintenance works and IGA,10 % increase in produce marketed) On behalf of the Government of Bangladesh Date On behalf of the Government of Denmark Date Embassy of Denmark, Dhaka: 1 DKK 1 = BDT 10

3 Table of Contents List of Acronyms Map of Bangladesh Executive Summary Introduction National Sector Context Economic and Social context National Policies Sector Policies and Reform Programmes Government Sector Financing Donor Involvements and Coordination Key Sector Institutions and Coordination Mechanisms Agreed Assistance Objective Strategy Components Coherence Between Components Considerations and Measures to Address Poverty Reduction Cross-cutting issues Component Outlines Budget Output based budget Five year Budget Plan Management and Organisation Programme Management Component Management Procedures for Adjustments of the Programme and Components Financial Management and Procurement Procedures for Budgeting Cash Flow Bookkeeping and Financial Reporting Audit Procurement Monitoring, Reporting, Reviews and Evaluation Monitoring Reporting Reviews and Evaluations Indicators Key Assumptions, Risks and Conditions Implementation Plan...47

4 Annexes 1. TOR of the Programme Steering Committee 2. ASPS II Organisational Diagram 3. Research 4. TOR of the National Adviser, Programme Secretariat 5. Institutional Support to the Planning Commission 6. Institutional Support to the Ministry of Agriculture 7. Institutional Support to the Ministry of Fisheries and Livestock

5 List of Acronyms ADB ADP AEC ASPS BARC BARI BFRI BLRI BDT CAT CBO CD/VAT CSC DAE Danida DFID DKK DLS DOF EOD EU FAO FFS GDP GOB HRD HRGG ICT IFAD IPM JBIC LCS LGED M&E MIS MLGRDC MOA MOFL NAEP NGO PD PFS PPSU PRSP PSC PT RFLDC RRMAC SWAP TA Asian Development Bank Annual Development Programme Agriculture Extension Component Agricultural Sector Programme Support Bangladesh Agricultural Research Council Bangladesh Agricultural Research Institute Bangladesh Fisheries Research Institute Bangladesh Livestock Research Institute Bangladesh currency (Taka) Component Assistance Team Community Based Organization Customs Duties/Value Added Tax Component Steering Committee Department of Agricultural Extension Danish International Development Assistance Department for International Development (UK) Danish currency (Kroner) Department of Livestock Services (under MOFL) Department of Fisheries (under MOFL) Embassy of Denmark European Union Food and Agriculture Organization of the United Nations Farmers Field School Gross Domestic Product Government of Bangladesh Human Resource Development Human Rights and Good Governance Information Communication Technology International Fund for Agricultural Development Integrated Pest Management Japan Bank for International Cooperation Labour Contracting Society Local Government Engineering Department Monitoring and Evaluation Management Information System Ministry of Local Government Rural Development and Cooperatives Ministry of Agriculture Ministry of Fisheries and Livestock New Agricultural Extension Policy Non Governmental Organisation Project Director Producer Fields School Policy and Planning Support Unit Poverty Reduction Strategy Paper Programme Steering Committee Producers trainers Regional Fisheries and Livestock Development Component Rural Roads and Markets Access Component Sector Wide Approach Technical Assistance

6 TOR TSPS UNDP UNO UP USD WB Terms of Reference Transport Sector Programme Support United Nations Development Programme Upazila Nirbahi Officer Union Parishad United States Dollar World Bank

7 Map of Bangladesh

8 Executive Summary The agricultural sector plays a very significant role in the Bangladesh economy as well socially and culturally Agriculture accounts for as much 25% of the country s Gross Domestic Product (GDP). In addition agriculture provides more than 60% of the national employment. As much of 80% of the land is covered by rice cultivation. Bangladesh has achieved self-sufficiency in rice production. Nevertheless, almost half of the population remains poor. Per capita GDP stood at USD 418 in Poverty is a very serious problem in the rural areas, and most of the population living below the poverty line lives in these areas. Even though there is a higher food production hunger and malnutrition still prevail due to lack of food diversification. Absence of proper agro-processing as well as competitive marketing of agricultural products has a negative influence on price fluctuations and availability of products in the right places. The area of arable land decreases every year by one percent for various reasons. One of the problems with a further intensification in rice growth is the high release of poisonous arsenic compounds due to increased irrigation. Bangladesh cannot increase production through expanding the arable areas anymore. The agricultural production should focus on a diversified and more effective production in the poor rural areas. The national poverty reduction strategy confirms that reducing poverty is the most important goal. The agriculture sector is an important tool to reach this goal as it directly reaches the poorest in the rural areas, proving both food and cash at the same time. In July 2000 the Government of Bangladesh (GOB) and Denmark started the first phase of the Agricultural Sector Programme Support (ASPS I) which included 15 components. The ASPS I included several components in the sub-sectors of crops, livestock, seeds and horticultures. The ASPS I also covered support to agricultural policy development. As a result of the annual consultations between government of Bangladesh and Denmark in 2004 it was agreed to continue a second programme phase (ASPS II). The ASPS II supports the government of Bangladesh to implement the Poverty Reduction Strategy Paper (PRSP). A major issue in the PRSP is the pro-poor economic growth. In terms of agriculture this will be achieved through diversification and by providing support to crops, livestock and fisheries. One of the important aspects of poverty is the high rate of malnutrition caused by limited access to diversified food. ASPS II will focus on promotion of food diversification for the poor. The ASPS is in accordance with the relevant national policies and strategies. These include the National Agricultural Policy, National Livestock Development Policy and the National Fishery Policy, and the New Agricultural Policy. The development objective of ASPS II is: Improved living conditions of poor marginal and small farmer households through enhanced, integrated and sustainable agricultural productivity 1

9 The development objective embraces the following vision for the programme: In the future marginal and small-scale farmers will have increased their production and incomes so that they will have moved out of poverty and improved their nutritional status. Farmers will be able to express their interest and demands and receive agricultural support from the private sector and a responsive local government system that is able to deliver decentralised services. The rural economy stakeholders will include productive farmers, and private enterprises in food, aquaculture and livestock production and processing. Village and rural roads will be maintained to a standard that meets the transport needs for the timely supply of inputs and for access to farmers and their markets. The second phase is based on the lessons learnt from the first phases of the ASPS and the Transport Sector Programme Support (TSPS). A number of activities will continue into phase two, in but in a new modality. The major changes from ASPS I to ASPS II are: Rationalisation of the support to the line ministries for institutional and policy development. Relevant transport activities will be integrated into the ASPS with support to rural roads and market access. Decentralised approach by delegating planning, decision-making and implementation to local authorities, NGO s and Community Based Organisations (CBO). Develop the negotiating capacity of CBOs to formulate and demand an adequate agricultural extension service from the public and private sector. A reduction of the present agricultural components from nine to two and the present transport components from five to one. The ASPS II addresses key strategic issues such as: Capacity development at grass root, district and national level focusing on a result oriented and on-the-job approach Incorporates a demand driven, integration and privatisation approach to agricultural extension, focusing especially on involving poor women and men in Farmer Field Schools (FFS) and promoting the spread of knowledge through training of Farmer Trainers A FFS approach that has a solid emphasis on nutrition issues. This approach links ASPS II efforts in terms agricultural diversification in particular into livestock and fishery/aquaculture with increased awareness about production, food use and nutrition linkages. Promoting local government and decentralisation in agriculture, fisheries and livestock development Promotion of farmers organisations Holistic perspective to the sector covering primary producers as well as processing and marketing. 2

10 The programme comprises the following three components: Components Agricultural Extension Implemented by the Department of Agriculture Extension (DAE), Ministry of Agriculture (MOA). Regional Fisheries and Livestock Development Implemented by the Department of Fisheries (DOF) and the Department of Livestock Services (DLS), Ministry of Fisheries and Livestock (MOFL). Rural Roads and Market Access Implemented by the Local Government Engineering Department (LGED), Ministry of Local Government Rural Development and Cooperatives (MLGRDC). Immediate Objectives 1. Improved, demand driven, integrated, and decentralised extension systems developed to support poor marginal and small farmer households. 2. Enhanced capacity of associated agricultural agencies of MOA. 1. Improved and sustainable productivity of, and returns from, fisheries and livestock systems of resource poor households 1. Improved efficiency and sustainability of the rural roads and market infrastructure. 2. Improved efficiency of LGED s maintenance management. Institutional support will be provided by the components to the line agencies DAE, DOF and DLS. The support comprises human resource development on monitoring and management issues, and links up directly with the field implementation of extension services in the agriculture components and nation wide. In addition, there will be institutional support provided at programme level for the Agricultural Division of the Planning Commission, the Ministry of Agriculture and the Ministry of Fisheries and Livestock. Agricultural Extension Component (AEC) The target groups are groups of small and marginal farmers, and women, cultivating acres of land with a focus on crop-based agricultural development, and with scope for integrating livestock and aquaculture production. Activities will be concentrated in the poor districts in the north and northwest. Field activities will build on the positive experiences gained during ASPS I with respect to the Farmer Field Schools concept, the development of farmer groups and the use of Farmer Trainers. There will also be an increased use of mass media and information communication technology for the dissemination of extension messages and market information. The overall approach is integrated crop management covering the crops sub-sector, but with operational links established at field level to the livestock and aquaculture/fisheries sub-sectors Regional Fisheries and Livestock Development Component (RFLDC) The target groups are small and marginal farmers and the functionally landless, with focus on specific groups such as women-headed households, women poultry rearers, inshore fishers, Labour Contracting Society members, settlers on new char land, and women fish driers. The component will build on the successful methodologies of the ASPS I aquaculture and livestock activities in the Noakhali and Patuakhali/Barguna areas. Use will be made of the participatory learning approach of field schools adapted to integrated homestead production activities in aquaculture and livestock with a variety of technical options. NGOs will be used to assist in capacity building of Union Parishads 3

11 (UPs) and Community Based Organisations (CBOs), and facilitate micro-credit. UPs will be supported to be responsive, accountable and transparent in providing services to the target group. Block grants, with performance based criteria will be available to UPs for their support to CBOs. The private sector will be supported to provide inputs and markets, such as in food processing. Market linkages will be promoted in cooperation with the Rural Roads and Market Access Component Rural Roads and Market Access Component (RRMAC) The target groups are primarily, farmers in aquaculture in relation to market access; also ultra poor women in LCSs, local government staff, the private and public sectors in southern districts. The component will build on the lessons learned from the Minor Roads component in the previous TSPS. The component will be implemented in the same geographic areas in Barisal/Noakhali where the RFLDC is working. The aim is to improve access to rural areas with a people-centred approach, and develop LGED s and UPs cooperation in connection with construction of rural roads and markets. Use of the experience gained working with LCS groups in TSPS will improve the possibilities of sustainable long-term income generating activities for the female members of the LCS. Policy Planning and Institutional Strengthening ASPS II will provide support to policy coordination and policy development at the programme level. This will include support to related research activities. The support to the Management Information Systems (MIS) established in the MOFL and in the MOA in 2005 will be continued in line with the e-governance policy of Bangladesh. Some support to HRD training will be given. Support for hiring local and international consultancies to conduct surveys and studies of national policy importance will be provided. Support to the Agricultural Division in the Planning Commission will enhance the Agriculture Division s policy planning skills. Programme Management A Programme Steering Committee (PSC) will be established chaired by the Planning Commission. The committee will include representatives from the key line ministries. The PSC will assess programme progress, and endorse annual work plans and budgets. Component Steering Committees will govern each component, with reference to the PSC. Key Indicators Key indicators for programme progress include the following: At least 700,000 households will have been trained and increased their incomes by a minimum of 30%. Fisheries and livestock yields of poor households will have increased by 100%. At least 2.3 million labour days generated in road works. 4

12 1. Introduction The governments of Bangladesh and Denmark initiated the first phase of Agriculture Sector Programme Support (ASPS I) in July 2000 based on a long history of bilateral cooperation in agriculture, livestock and fisheries. Planned for conclusion by June 2006, ASPS I comprises components within crops, fisheries, livestock, seeds and horticulture sub-sectors, as well as support to policy development with a common development objective of optimised, integrated, and sustainable smallholder agricultural production for improved living conditions. During the annual consultations in 2004 between the governments of Bangladesh and Denmark, it was agreed to continue with a second phase (ASPS II) commencing July 2006 with five years duration and an indicative budget of DKK 531 million. Based on the annual consultations a Bangladeshi Danish formulation task force was formed. On the basis of a Strategic Framework Document resulting from the identification process, the Embassy of Denmark (EOD) prepared a Concept Paper that was presented to the Danida Programme Committee, thereby allowing for the formulation process to be initiated. The Concept Paper envisaged that ASPS II would contribute to the development goals set out in the Government s Poverty Reduction Strategy Policy (PRSP) and national policies, strategies and plans related to the agricultural sector. It would build on achievements and experience gained during the implementation of ASPS I, and the Bangladesh Denmark Partnership Strategy for It would be designed to further a decentralised, integrated and demand-driven approach to service delivery. The development objective for ASPS II is: Improved living conditions of poor marginal and small farmer households through enhanced, integrated and sustainable agricultural productivity In the context of pro-poor agriculture based development in rural areas of Greater Noakhali and Greater Barisal districts the minor roads activities, previously supported under the Transport Sector Programme Support (TSPS), will be included in ASPS II as a Rural Roads and Market Access Component. ASPS II will comprise the following three components: Agriculture Extension Component (AEC) anchored in the Ministry of Agriculture (MOA) Regional Fisheries and Livestock Development Component (RFLDC) comprising four Support Units anchored in the Ministry of Fisheries and Livestock (MOFL). Rural Roads and Market Access Component (RRMAC) anchored in the Local government Engineering Department (LGED). In addition budget provisions have been made for support to agriculture sector policy formulation and research, as well as institutional support to key sector institutions. 5

13 This Sector Programme Support Document outlines the overall framework for the ASPS II including a summary of the three components, which are described in detail in separate component descriptions. 6

14 2. National Sector Context 2.1 Economic and Social context The national economy has during the last decade ( ) shown an average annual growth in the Gross Domestic Product (GDP) of 5% compared to the 7% considered necessary to achieve sustained poverty reduction. Despite a gradual increase in the contributions of the industrial and service sectors to the GDP over the latest decades, agriculture remains an important sector accounting for about 25% of GDP and offering more than 60% of national employment. Self sufficiency in rice, which occupies more than 80% of total cultivated land has been achieved, agricultural productivity has generally increased and diversification of production has been initiated with more farmers producing vegetables, fruits, poultry, milk and fish. This development should be seen against an annual population increase of 1.6 per cent to presently around 140 million, and a sharp decline in land available for agriculture and cultivable land per household to currently 0.6 ha. Agricultural growth has reached an average rate of 3.7 percent during recent years compared to an overall GDP growth of 5.2 per cent. Fishery has experienced a higher growth rate due mainly to the cultivation and export of shrimp. However, the agricultural crops accounts for almost 60 per cent of value added to agricultural production over the last decade with an average annual growth rate of around 3.5 per cent. With rural non-farm activities contributing about 35% of GDP, the rural areas of the country, where 75% of the population and 85% of the poor live, accounts for 60% of the national economy. Furthermore, most of the around 35% of the population reported to live below the poverty line are concentrated in rural areas. 2.2 National Policies Poverty Reduction Strategy The policy framework for agricultural development is set-out in the PRSP for Bangladesh, which is called Unlocking the Potential National Strategy for Accelerated Poverty Reduction. The Government of Bangladesh (GOB) approved the PRSP the 16 of October The PRSP emphasizes agriculture and rural development as key sectors for poverty reduction and pro-poor economic growth. This emphasis is made to mitigate the serious constraints that food insecurity among the large poor population in rural areas poses to development efforts. It calls for Actionable Policy Briefs to be completed and the New Agriculture Extension Policy (NAEP) as well as the Plan of Action for the National Agricultural Policy and the National Plan of Action for Nutrition to be implemented. The PRSP strategy for crop production is based on increased productivity and diversification of crops to improve profitability and nutrition. Intensified crop production through use of quality seeds, balanced fertilizer usage, integrated pest management and improved soil fertility, shall result from the implementation of defined 7

15 policies and plans of actions with a pro-poor focus, and increased allocations to needbased research and extension undertaken in collaboration between public, private and NGO stakeholders. The importance of the private sector as well as the social and commercial activities of NGOs is recognized in a rural setting where non-farm activities are becoming increasingly important for sustained poverty reduction. The PRSP considers livestock as a key element in a pro-poor growth strategy, and emphasises the development of dairy and poultry production as a measure to improve nutrition and income among rural poor. This shall be reached through the implementation of new livestock policies, which are under preparation and will include a redefined role and strengthening of the Department of Livestock Services (DLS) of MOFL, and increased budgetary allocations for livestock research and extension under the GOB Annual Development Plans. Furthermore, the PRSP calls for finalization of strategic plans for improving the productivity of aquaculture and inland fisheries, promoting rice-fish culture (gherfarming), and calls for increased income generating opportunities for poor costal fishing communities. The PRSP underlines aquaculture as a pro-poor growth strategy, and places emphasis on interventions to redefine the role and increase the capacity of the Department of Fisheries (DOF) of MOFL. The PRSP also points to the crucial role and engagement of women in agricultural production; especially the contribution of women to nutrition and household income and savings through livestock rearing and homestead production of vegetables and fruits. The PRSP calls for women friendly agricultural extension and training, for space and opportunities in market places, credit support for women and fair wages for their labour. Further the PRSP includes a strategy to strengthen the focus on women's empowerment through increased literacy, education, entrepreneurship, and participation in decision making government bodies. The PRSP also emphasises the critical role that rural roads and market access plays for economic growth, poverty reduction and social development through its implications for product diversification, trade expansion, provision of basic services, increased productivity, and decreased overall production costs. Furthermore emphasis is given to decentralized planning and community participation giving importance to maintenance of rural roads and market infrastructures with increased employment opportunities for women and Labour Contracting Societies (LCS). Rehabilitation and maintenance of roads would have the potential to directly address poverty by providing employment for vulnerable groups of women and men, and indirectly by improving the capacity and mechanisms to prioritise rural roads and markets in a transparent and accountable manner. In this context the issue of agricultural marketing is highlighted as a critical element for pro-poor economic growth stressing the need for support to private sector led high value agro-products. Agri-business and agro-processing are given priority in order to promote value addition to crops, livestock, fish and horticultural products. The PRSP calls for the 8

16 promotion of rural non-farm activities as poverty reduction measure to be integrated in rural development programmes. The PRSP calls for an enabling rural finance environment providing incentives for banks and financial intermediaries to increase rural investment identifying small businesses as well as high value agriculture produce as promising areas. Room for improvement is identified in the operation of micro-credits although the PRSP acknowledges micro-credit operations as a success story. Access to credit and low loan ceilings for the poor is mentioned as issues of concern. The PRSP calls for innovative approaches with respect to credit delivery mechanisms diversified financial services and complementing micro-finance with non-financial interventions. Within the supporting strategy of good governance in pursuit of pro-poor growth, the PRSP underlines the importance of local government and points to the Union elections in 2003 and the Pourashava elections of 2004 as milestones in the decentralisation agenda. However, the provision for an elected Upazila Parishad was not implemented, and an increasing intrusion of local Members of Parliament in the affairs of Union Parishads (UP) has been noted. The need to revive the political debate on the Upazila question and on comprehensive local government legislation is highlighted. The 1999 National Agricultural Policy provides guidelines for development activities related to crops, the largest sector of agriculture, calling for increased profitability from sustainable and diversified production systems for improved real income of farmers as well as food security and nutrition. The application of quality seeds, Integrated Pest Management, balanced use of fertilizers and training programmes in the context of a farming system approach are underlined. In general the national policy objectives are concerned with the need to reorganise and develop agricultural production systems to become more dynamic, open market oriented and profitable. The 1992 National Livestock Development Policy, which has never been officially approved nor implemented, recognizes the need for changing the role of DLS and increased involvement of the private sector to ensure production and support services, as well as involving NGOs to promote group mobilisation, training and credit. However, the policy fails to recognise the role of livestock in poverty reduction, and it is weak in areas of disease intelligence and quality control of feeds and livestock products. Associated laws and regulations have in general not been enforced. The 1998 National Fisheries Policy was developed on the recognition that the fisheries and aquaculture sub-sector had undergone dramatic change, without an appropriate policy framework. The objectives of the National Fisheries Policy are concerned with poverty alleviation through self-employment and improved livelihood; meeting the increasing demand for animal protein; and achieving economic growth and foreign currency earnings through exports, while at the same time conserving biodiversity, improving human health and enhancing fisheries resources. For this purposes the National Fisheries Policy comprises specific policies for the conservation and exploitation of both inland water and marine fisheries resources. 9

17 The 1996 New Agricultural Extension Policy with its goal to encourage the various partners and agencies within the national agricultural extension system to provide efficient and effective services which complement and reinforce each other, in an effort to increase the efficiency and productivity of agriculture, represented a shift towards a need-based farming systems approach encompassing agriculture crops, aquaculture and livestock extension. It underlines the need for co-ordination between line ministries, NGOs and private sector service providers based on increased local level responsibility for planning and implementation of extension activities. In this context the implementation strategy for NAEP foresees the constitution of co-ordination committees at the national land local levels. However, not all these committees have not been constituted or are not operational. Likewise the NAEP has not been fully implemented especially with regard to coordination between line ministry services to promote a farming systems approach. The 2004 National Land Transport Policy constitutes a major step forward to establish the national transport framework aiming at a safe and dependable transport system to reduce transport costs, promote economic growth, and contribute to poverty reduction. The Government would be responsible for environmental, safety and technical standards for construction and operation of transport infrastructure while the private sector will provide transport services. Road and railways infrastructure are considered national assets and will remain with the government while increased private sector participation will be encouraged for construction, maintenance and management. Labour Contracting Societies (LCS) will provide a means for poverty alleviation though employment opportunities for poor women and men and needs of non-motorised transport will be considered in rural road design. Furthermore the policy calls for road maintenance budgets to be increased. A long-term Road Master Plan is to be developed, and the Roads and Highways Department, LGED and city authorities will establish routine and periodic maintenance programmes. 2.3 Sector Policies and Reform Programmes In 2004 MOA initiated the Agriculture Sector Review in order to respond to the need for sector strategies and plans outlined in the PRSP. This process has resulted in the elaboration of a number of Actionable Policy Briefs 2 which have been approved by the Government, this also include the development of a Livestock Policy and Action Plan Furthermore, the DOF, facilitated by the Fourth Fisheries Project, formulated a draft National Fisheries Strategy in order to propose ways of implementing the National Fisheries Policy. The Policy and Planning Support Units (PPSUs), which were established in the MOA and MOFL as separate components under ASPS I, have supported their respective line 2 Besides an overview of challenges and opportunities within the agriculture sector (crops),these include briefs for: (1) Seed; (2) Fertilizer; (3) Land; (4) Minor irrigation; (5) Mechanization; (6) Marketing and agribusiness; (7) Agricultural research; and (8) Agricultural extension. 10

18 ministries with the elaboration of strategies and plans for sector interventions, including institutional and coordination aspects. 2.4 Government Sector Financing Annual Development Programme (ADP) in Crops The Revised ADP for FY provides a total allocation of BDT million for implementation of 75 projects. The GOB portion of total allocation is BDT million and project aid is BDT million. Annual Development Programme (ADP) in Fishery Sixteen development projects (11 investment and 5 technical assistance projects) were included in the Revised ADP for with a total allocation of BDT million (BDT million GOB contribution and BDT million project aid). Annual Development Programme (ADP) in Livestock The Department of Livestock Services has undertaken a total of 8 projects in FY with an allocation of BDT million (GOB allocation is BDT million and project aid is BDT million). 2.5 Donor Involvements and Coordination The Local Consultative Group in Bangladesh has 23 sub-groups of which the sub-groups on agriculture, fisheries, rural infrastructure, poverty issues, gender, governance, food security and nutrition, transport, and environment are the most relevant for ASPS-II. In general the mission of the sub-groups is to provide a mechanism for policy dialogue, discussion and coordination among participants who are primarily representatives of the development partners interested in the sector or issue covered by the sub-group. The sub-group provides feedback to concerned Government agencies and to the main Local Consultative Group. The mission of the sub-group on Women Advancement and Gender Equality is to provide a forum for information exchange among development partners and GOB to enhance mainstreaming of gender issues across sectors and to maintain a common database of women in development/gender-related activities. Denmark is a participating member of all the Local Consultative sub-groups mentioned above as relevant to ASPS II interventions, except for the sub-groups on food security and nutrition, and the environment. Coordination of development assistance rarely goes beyond information sharing. Initiatives of any importance to harmonise procedures of different donors and between donors and government are normally not on the agenda. International and multilateral agencies dominate development assistance to the sector. The Agricultural Support Services Project and its successor the Agricultural Services Innovation and Reform Project, which was completed in 2004, were joint GOB, DFID, World Bank funded with the intention to implement the NAEP. Currently the World Bank together with IFAD is in the initial stages of preparing continued support to the 11

19 national agricultural technology system within a context of poverty reduction as set out in the PRSP. However most ongoing projects address specific issues and are implemented in selected geographical areas, such as the Char Development and Settlement project funded by the Netherlands; the Integrated Horticulture and Nutrition Development Project implemented in 21 Upazilas with financing from UNDP; the Special Programme for Food Security supported by FAO; the North West Crop Diversification Project in 60 northern Upazilas with assistance from the Asian Development Bank (ADB); and the Small Holder Agriculture Improvement Project in the 3 districts of Mymensingh, Jamalpur and Sherpur supported by IFAD and WFP. Major donor support to DLS is focussed on poultry development as a means to improve the livelihood of poor women. The Small Livestock Development Project was initiated with from IFAD and Danida. FAO is also supporting MOFL in developing national strategies and action plans for the livestock sub-sector in line with the PRSP. Most donor-supported projects/programmes in fisheries and aquaculture extension under the umbrella of DOF are now completed. Apart from Danida supported activities under ASPS I, only the Fourth Fisheries Project continues on a reduced scale until June Fisheries management in defined areas such as Jalmohals, is supported by Patuakhali Barguna Aquaculture Extension Component (Danida), Fourth Fisheries Project (World Bank), MACH (USAID) and CBFOT (DFID through the World Fish Centre). The Embassy of the Netherlands funds the Char Development and Settlement Project, which has been operating in the char areas of the Noakhali district for a number of years. The Bangladesh Market Infrastructure Development Project in Charland Regions, which will be initiated under the responsibility of LGED in July 2006 with funding from IFAD, will operate in many of the same districts as ASPS II Components 2 and 3, supporting similar interventions to improve local capacity, market access and road infrastructure. Major donors active within the transport sector are the WB, ADB, JBIC, EU, IFAD and DFID. However, most focus on national highways rather than on rural roads. The above-mentioned Bangladesh Market Infrastructure Development Project in Charland Regions being planned with support from IFAD is of direct relevance to the ASPS II Component 3. Coordination mechanisms have been identified and described in the Component 3 description. 2.6 Key Sector Institutions and Coordination Mechanisms Key sector institutions for agricultural and rural development in Bangladesh include: The Ministry of Agriculture, Ministry of Fishery and Livestock, Ministry of Local Government, Rural Development and Cooperatives and the Planning Commission. Ministry of Agriculture 12

20 MOA has seven wings for policy planning and coordination, research administration, extension, administration and input supply, seed, education, and monitoring and evaluation. There are around 13 organizations through which all the development works for the crop sector are performed. The DAE has extension agents through out the country beyond Upazila (down to block level). The ministries mandate includes operational interventions, and development and monitoring of sector policies and strategies. Ministry of Fisheries and Livestock MOFL has two broadly different mandates. Fisheries and Livestock are managed as two separate systems with separate extension systems down to Upazila level. Training and research are also handled separately. DOF under MOFL disseminates fisheries related technology. At the field level, DOF staff are deployed at division, district and Upazila levels. Fishery extension services do not have any facilities beyond Upazila level. Each division has a Division Director; each district has a District Fisheries Officer and in each of the 465 Upazilas there are three officers. DOF is represented on management committees at the Upazila level, where possibilities for cross-sectoral collaboration exist. Reporting lines, however, are vertical within DOF. Under DOF, a number of inspection, quality control and training centres exist. DLS under MOFL provides livestock extension services and generally has extension agents at district and Upazila level through which it extends research findings and knowledge on livestock production. DLS also supplies inputs and delivers other livestock services. Actual outreach to smallholders is very limited. DLS produces and undertakes quality control of vaccine for the highly infectious diseases of ruminants and birds in Bangladesh. DLS supplies day-old chicks and ducklings (around 5 million yearly) from 28 DLS poultry farms. Ministry of Local Government, Rural Development and Cooperatives The Ministry of Local Government, Rural Development and Cooperatives is - through LGED - responsible for development and maintenance of rural infrastructure such as roads and also for waterways (khals) and landing stations. The LGED organization is well structured, with district and Upazila level offices. LGED is responsible for: The improvement, upgrading and maintenance of feeder roads (Upazila roads), including bridges and culverts. The development of growth centre market facilities. The maintenance of rural roads and bridges. The provision of technical supervision to local government bodies to assist those bodies in fulfilling their responsibilities for planning, implementation, operation and maintenance of rural infrastructures. Planning Commission The Agriculture Wing of the Planning Commission is responsible for the overall policy guidance and budget of the agricultural sector in relation to the GOB rolling plans and 13

21 Annual Development Plans. The Planning Commission is also responsible for the approval and clearance of all development projects. NGOs A number of local, national and international NGOs are working in the area where ASPS II field activities are to take place. The NGOs strengths include social mobilisation, organising credit and saving schemes and providing technical assistance. They are the main agents for promoting the formation and operations of CBOs of farmers and fishers. 14

22 3. Agreed Assistance 3.1 Objective ASPS II is the second phase of the Danish support to the agricultural sector. The programme continues and builds upon the experiences of the ASPS I. The ASPS II will in particular focus on providing support to GOB in the implementation of the PRSP. The development objective of the ASPS II is: Improved living conditions of poor marginal and small farmer households through enhanced, integrated and sustainable agricultural productivity Measurement of progress towards reaching the development objective will be done periodically through surveys of living conditions in the programme implementation areas. The target groups and beneficiaries are: Component Primary Target Group Secondary Target Group Other beneficiaries Agricultural Extension Consumers. Regional Fisheries and Livestock Development Rural Roads and Market Access 200,000 Small (0.5 acres to 2.49 acres) crop farmers in the, north and northwest, gender balanced Private sector. 300,000 Marginal (less than 0.05 acres) fish and poultry farmers in southern districts, gender balanced. 200,000 Small (0.05 acres to 2.49 acres) fish and poultry farmers in the southern districts, gender balanced 5,000 LCS women. Private sector. Farmers (mainly prawn and fish farmers) in the southern districts. MOA. DAE and staff. Researchers and research institutes. Private seed industry. Agricultural input dealers. NGOs Private extension providers UP. CBOs. MOFL. DLS and Staff. DOF and Staff. Researchers and research institutes. NGOs and Staff. Private Hatcheries (Fish and Poultry). LGED and staff Upazila Engineers Office. UP. 15,000 LCS (priority given to ultra poor women). Business people. Consumers in the southern districts. Private sector Public sector e.g. schools, hospitals etc. General public 15

23 3.2 Strategy The ASPS II has been formulated on the basis of the following major strategic deliberations: ASPS I and ASPS II Sector Wide Approach (SWAP) and Donor harmonization Promoting Local Government and Decentralisation in Agricultural Development Capacity Development Institutional Support Private Sector Support Research ASPS II in relation to ASPS I To better understand the ASPS II strategy it is important to briefly describe how ASPS II differs from ASPS I and how it builds on ASPS I experiences. It should also be noted that ASPS II builds on the experiences of TSPS Minor Roads component as well as the previous agriculture, fisheries and livestock components. The linkages between ASPS I and II are: ASPS I and the TSPS included 14 individual components at the end of the programme period. ASPS II including rural roads is comprised of only three components. Many of the first phase components resembled separate projects parallel to government structures. ASPS II will move towards a programme that is integrated into the key ministries. In terms of agricultural extension, ASPS I was by and large dependent on GOB and NGO service providers. ASPS II will pursue an approach that increasingly transfers more responsibility for agricultural extension to the actors at the field level including individual farmers, farmers organisation and other private actors. ASPS II will apply and build on successful ASPS I approaches. A group approach to agricultural extension is a key element in ASPS II strategy. ASPS II will therefore use the successful experiences from ASPS I in terms of promoting farmer field schools, farmer to farmer training and developing farmer/fisher community based organisations. It will also continue and build on the successful approaches developed in aquaculture and provision of smallholder livestock services. The Minor Roads Component, in the Transport Sector Programme, successfully made use of and further developed the LCS, with these benefiting poor and often landless women. ASPS II will broaden the approach to LCSs and assist the women in developing alternative agricultural income generating related activities. ASPS II will be continued in Greater Noakhali District and Barisal Division, and consolidate the ASPS I achievements there. Danida will further strengthen its poverty profile by promoting ASPS II activities in poverty prone districts in north and northwest Bangladesh. 16

24 SWAP and Donor harmonization Danish assistance to Bangladesh has a long term aim of providing support through a SWAP. At present there are several factors that limit the possibility of providing Danish assistance through SWAP. The policy framework for the agricultural sector is not fully developed. There are therefore several on-going policy processes aiming at strengthening the overall policy framework for the agricultural sector. ASPS I attempted to embark on a SWAP approach, this failed because of the Agricultural sector ministerial set up, and SWAP is not readily accepted by GOB. In this context ASPS II will pursue a strategy that seeks to promote an integrated agriculture farming system approach firmly anchored at local levels. Danida has, during ASPS I, through the policy support units contributed to the agricultural sector policy development. This included the establishment of PPSU, with one located in MOA and a second in MOFL. Since the ASPS I failed to promote a SWAP approach support to PPSUs will not be provided during ASPS II. During ASPS II Danida will rather, through national technical advisory support, continue its efforts to assist GOB in developing a strong agricultural sector framework. Financial management also needs to be further strengthened in order for Danida to fully embark on SWAP. Danida stresses the importance of providing support to local decision making in agricultural development. Through support to the agricultural sector, Danida will provide support to decentralisation and to local government including support to UP. At present the local government structures are weak and there are no strong budgeting and accounting mechanism at this level. ASPS II will continue to support GOB in harmonisation of donor initiatives, including work in the Local Consultative Group. The support will cover donor harmonization at a national level and at regional level. At the national level, the component in particular will facilitate the exchange between key stakeholders including MOA, MOFL and LGED and donors. These efforts will be made in order to prevent duplication and ensure synergy effects. Promoting Local Government and Decentralisation in Agricultural Development In Bangladesh there is now an understanding of the importance of promoting local government in respect to poverty reduction. It is particularly important that local government plays a key role with regard to better service delivery for rural poor people. The ASPS II approach is that local government can become a focal point for better interaction between community groups, private sector actors, NGOs and government agricultural related agencies. By stimulating such interaction the ASPS II will be able to promote a more democratic local government. The programme will stimulate such developments by promoting participatory planning and financial processes related to enhanced agricultural extension service provision, as well as roads and market access improvement. 17

25 Capacity Development The capacity development approach to beneficiaries will have the following characteristics: A practical approach towards training that incorporates strong elements of learning by doing, on the job learning and coaching. A result oriented approach concentrating on making specific achievements at different levels including household, community, local government and national level. Training of trainers through training of farmer trainers In terms of agricultural production, promoting a learning approach that reflects the current agricultural production and marketing system ASPS II components include national capacity development of GOB agencies. This includes capacity development in DAE, DLS, DOF and development of LGED information systems and management models Technical Assistance (TA) will be provided on a long-term basis as well as through short-term consultancies. International and national TA will be used with the primary aim of increasing the management capacity of government and non-government regulators and implementers in the agricultural sector. The functions of the TA, which in ASPS I included executive roles in management and financial control, will be on a comanagement basis and gradually evolve into more exclusively advisory, facilitating and supporting roles. This will occur in parallel with the development of the Embassy of Denmark s initiatives regarding greater integration into GOB structures and procedures. The need and numbers of international long-term TA has been agreed with the respective ministries. It represents a significant reduction in relation to ASPS I. The need for TA in the well established institutions and programmes such the Ministry of Agriculture and the LGED is not as great as it will be for the innovative decentralised initiatives that will be conducted through the MOFL. The general strategy is to provide specified international TA during specific periods, with a decrease over the programme period, and to have provision for extra inputs that may be identified during implementation. International TA are regarded as a supplement to the human resources of GOB. Selection and definition/revision of their responsibilities will be a joint exercise. National TA will supplement the international TA where appropriate, and replace them if necessary when the international TA input is completed. The participating institutions will be encouraged to appoint their own National TA on the GOB contract basis as to replace the Danida-financed staff later in the programme period. The number and type of international and national TA input is shown in the tables below. 18