HORTICULTURE AND LIVESTOCK PROJECT (HLP) (TF 91885)

Transcription

1 AFGHANISTAN RECONSTRUCTION TRUST FUND HORTICULTURE AND LIVESTOCK PROJECT (HLP) (TF 91885) Project Restructuring Application to ARTF Management Committee and Request for Additional Funds (US$ 9 million) under the Blanket approved on 18 March 2008 MC Meeting Date: 10 November 2009 Applicant: Brief Description: Project Development Objective: Performance Indicators: Sector: Location: Total Project Cost: Amount Requested for ARTF MC Approval: Islamic Republic of Afghanistan The HLP aims to increase horticulture productivity by rehabilitating existing orchards, establishing new orchards, and establishing nurseries in focus areas. HLP also aims to increase output and productivity of livestock which includes a sub component on poultry development. The HLP also provides the Ministry of Agriculture, Irrigation and Livestock with capacity building, implementation, and monitoring and evaluation support. To assist producer households in adopting improved practices so as to increase horticulture and livestock productivity and production in focus areas. The performance indicators are as follows Horticulture 15 % increase in productivity in target farmers orchards At least 50% of target farmers adopt at least two best suitable practices 1 in focus districts 3000 ha of new orchards established with at least 60 % of saplings surviving by end of the project Livestock 5 % reduction in mortality among large ruminants, and 10% among small ruminants At least 60 % of target producer households adopt improved poultry raising practices Incremental production of 15 million eggs and 450 tons of meat per year achieved Institution and Capacity Building Functioning horticulture and livestock extension and other services in place Rural Development 11 focus districts: Mir Bachakot (Kabul), Shaikh Ali (Parwan), Mahmood Raqi (Kapisa), Bazarak/Rokha/Onaba (Panjsher), Farkhar (Takhar), Imaam Sahib (Kundoz), Aybak (Samangan), Khulm (Balkh), Shebergan (Jawzjan), Sozma Qalla (Sari Pul), Pul-e-Kumri (Baghlan). Afghanistan US$ million US$ 9,000,000 under the blanket approved US$ 20 million. 1 Best suitable practices mean practices which are considered to be the best, considering the prevailing situation of Afghanistan, and include improved water management, pruning and orchard management. 1

2 Implementing Agency: Implementing Period: Contact for further information: Reviewed and Cleared by the Administrator: Ministry of Agriculture, Irrigation, and Livestock (MAIL) Two years (December 31, 2011) Mr. Assad Zamir Director General Program Implementation and Coordination (PICU) Ministry of Agriculture, Irrigation and Livestock Kabul, Afghanistan +93 (0) Loan Department; Legal Department; Procurement, Financial Management, Country Management and Sector Management Units 2

3 AFGHANISTAN RECONSTRUCTION TRUST FUND HORTICULTURE AND LIVESTOCK PROJECT (HLP) (TF 91885) Project Restructuring Application to ARTF Management Committee and Request for Additional Funds (US$ 9 million) under the Blanket approved on 18 March 2008 I. Proposal Summary MC Meeting Date: 10 November The HLP was approved by the IDA Board on May 25, 2006 and became effective on October 16, It was agreed that the project would be financed by IDA (US$ 20 million) and co-financed by other sources including the ARTF. On March 18, 2008, the ARTF Management Committee (MC) provided blanket approval for US$ 20 million to the project. The MC also approved the release of the first tranche of US$ 11 million under the blanket. 2. The purpose of this application is two-fold; (i) to report on the overall progress since the MC in March 2008, including the proposed restructuring of HLP and 2 year extension of closing date and (ii) to request the remaining US$ 9 million under the blanket approval. 3. When the Management Committee approved the US$11 million in 2008, it asked the team to address and report back on the following: a. Emphasis on women s participation in the horticulture component b. Analysis of the social implication of the transfer of veterinary clinics to the concerned veterinarians. c. Extension of the ARTF Grant Agreement to coincide with the extended IDA Grant closing date a. The task team, in close collaboration with the government, has addressed the above concerns raised by the MC. In the last six months the project has actively promoted gender mainstreaming in all components, including horticulture. Over 7000 women have been trained in semi-intensive poultry, 107 female groups have been mobilized as potential candidates for receiving horticulture and livestock extension messages 2 and participation in savings boxes; and 170 women farmers have established new orchards. NGOs working on the poultry component have been successful in identifying, training and employing women. Similarly, the NGOs assisting with mobilization of producer groups have also successfully employed women. The project now also has a full time gender coordinator who has recently helped prepare a draft gender mainstreaming strategy for HLP. b. A consultant was hired in 2008 to undertake an assessment of the possible social impact of handing over of government clinics to private veterinarians. The assessment was based on secondary data as well as primary data gathered through focus groups interviews conducted with vets and paravets in both the public and private sector. According to the study, the provision of animal health services in Afghanistan is currently carried out primarily by the private sector with 621 Animal Health Service Centres being operated by various NGOs, 70 managed solely by the Government and 73 managed jointly by the government and various NGOs. The study found that poor livestock owners prefer private provision of animal health services over government 2 New knowledge on agricultural practices through farmer education. 3

4 delivery. This is primarily because private coverage is more widespread, giving livestock owners in the remotest provinces greater access to services. The study also found that private vets are generally recruited from within the community and as a result are (i) better able to understand the problems faced by the livestock owners in that area; (ii) more able to accept flexible payment modalities; (iii) and able to meet with female clients. Government vets however are recruited from outside the area in which they are assigned to work and are as a result unable to readily meet with female clients. Given women are primarily involved in management and care of livestock in most families, this is a big hindrance. c. The ARTF Grant Agreement will be extended to coincide with the IDA Financial Agreement which as part of the project restructuring is being extended by 2 years. More details on the restructuring are below in Section II. The revised closing date would be December 31, II. Background and Proposed Restructuring 4. The original project objective was to stimulate marketable output of perennial horticulture and livestock in focus areas by: (i) improving the incentives framework for private investments; and (ii) strengthening institutional capacity in agriculture. The key project components were: Component 1 - Increasing Marketable Output of Perennial Horticulture rehabilitating existing orchards, establishing new orchards, establishing fruit tree nurseries, establishing and supporting the National Union for Horticulture Development Association Component 2 - Increasing Output and Productivity of Livestock Animal Health services, livestock production and marketing initiatives, support to Animal Husbandry Dept Component 3 - Capacity Building, Implementation, and Monitoring and Evaluation Support 5. The first two years of the project were largely devoted to getting the implementation arrangements in place, including staffing and recruitment of facilitating partners (FPs). As a result, until November 2008 there was little progress on the ground, except on the horticulture component under which some orchard rehabilitation demonstrations were undertaken. Complex and ambitious project design, combined with poor performance by the Implementation Management Support Team (IMST) including the Lead Facilitating Partner, difficulties faced by facilitating partners in finding competent professionals, and deteriorating security in the country all contributed to the poor performance. 6. By the middle of 2008, it was clear that the project as originally designed would not achieve its objective by December 31, 2009, the closing date. While there were expectations that overall project performance would improve following the change of leadership in MAIL, there was little justification for considering an extension of closing date based on the track record until then. Also, there was no tested and successful model that could be used as a basis for proceeding with restructuring of the project. The Mid Term Review (MTR), completed in November 2008, therefore, adopted a strategy of making the project simpler and focused with a view to evolve a model that could be used under a restructured project after initial successes were demonstrated on the ground. The key recommendations of the MTR were to: Concentrate project activities in 10 focus clusters, selected on the basis of a set of agreed criteria, where horticulture and livestock development could be addressed more intensively by mobilizing farmer/producer groups (instead of being dispersed over 70 locations in 10 provinces). Revise the project scope to make it commensurate with demonstrated capacity. 4

5 Agree with MAIL on performance benchmarks, which if achieved by June 2009, would represent a turn-around in performance and provide a basis for consideration of an extension of closing date as part of formal restructuring of the project. The option of closing the project on December 31, 2009 was considered but discarded as it would have meant a major setback to MAIL's program in these important sectors and possible waste of resources already committed, without even yielding a tested model for the future. 7. Reasons for Restructuring. As documented in the project Implementation Status and Results Reports (ISRs) overall implementation performance was deficient as indicated by: (i) generally sub-par performance by the executing agency; (ii) long delays in procurement and excessively slow disbursements compared to the original estimates; and (iii) prolonged existence of problem project status. By the end of 2008 it was evident that the project would not achieve its original physical targets and development objective by the grant closing date. It was also clear that the original project objective and the scope/targets were overly ambitious, especially when considering the weak capacity of the executing agency, the post-conflict environment in the country, and the emergency nature of the project. 8. Several factors, however, have contributed to improved project performance in 2009: (i) a major emphasis by GOA on significantly improving performance in the agriculture sector; (ii) presence of dynamic leadership and build up of a dedicated team in MAIL, representing a significant change in the policy and institutional environment; and (iii) preparation of a new National Agricultural Development Framework (NADF), which recognizes horticulture and livestock as strategically important subsectors. Implementation progress in each project component can be found in Section III below. 9. Proposed Approach to Restructuring. In June 2009 on the basis of an in-depth review carried out jointly by MAIL, Bank, and other donors supporting the project through the ARTF it was agreed to restructure the project. To address the issues mentioned in paragraph 7 above and take advantage of the recent positive developments it is proposed to restructure the project with the following objectives: (i) developing a model for future development of horticulture and livestock in the country; (ii) making the project targets realistic; and (iii) confining project activities to selected focus areas to enhance its impact (11 districts selected by government 3 ). Since confining the project to 11 districts 4 would entail a change in the originally intended beneficiaries, a first order restructuring is proposed. Also, considering the project period already elapsed, a two-year extension of the closing date is proposed to allow more time for completing the revised project scope/targets. A detailed project restructuring paper and revised Results Framework prepared for the IDA Board is attached as Annex 1. Also attached are the key Performance Monitoring Indicator (Annex 2) 10. Revised Project Objective. The revised project objective is to assist producer households in adopting improved practices so as to increase horticulture and livestock productivity and production in focus areas. The focus would be on productivity and production rather than on the incentives framework 5. The Results Framework has been modified accordingly as indicated in the attached project paper. III. Implementation Progress The project would be confined to 11 districts (instead of being dispersed over 10 provinces as envisaged originally), where horticulture and livestock development could be addressed more intensively by mobilizing farmer/producer groups. Mir Bachakot (Kabul), Shaikh Ali (Parwan), Mahmood Raqi (Kapisa), Bazarak/Rokha/Onaba (Panjsher), Farkhar (Takhar), Imaam Sahib (Kundoz), Aybak (Samangan), Khulm (Balkh), Shebergan (Jawzjan), Sozma Qalla (Sari Pul), Pul-e-Kumri (Baghlan). The revised objective recognizes the fact that increased productivity is the vital first link in the value chain. 5

6 11. The project has made considerable progress since the Midterm Review in November Progress in each of the three components and the original and revised targets at the end of project are outlined below: Component 1 - Increasing Marketable Output of Perennial Horticulture New Orchards: A significant success for the project to date has been the establishment of new orchards. In 2009, 705 ha of new orchards were established on 3525 fields, of which 170 were owned by women. Preparations are underway for establishing 1,700 ha of new orchards by 2010 with 700 ha being planted in autumn 2009 and 1,000 ha in spring (Original end of project target was 5,000ha; revised target is 3,000 ha) Orchard Rehabilitation: 36,500 farmers have been reached and provided with extension messages on improved agricultural practices. The interventions of the extension activities are now estimated to have been adopted on approximately 4000 ha. (Original end of project target was 12,000 ha). Nurseries: Approximately 1.5 million saplings are ready for planting next season Component 2 - Increasing Output and Productivity of Livestock Privatization of government veterinary clinics: Two government clinics have been transferred to the concerned vets so far. Initial indications are that the privatization process is successful given the private veterinarians have developed extensive plans for expanding the outreach of their services to clients by employing additional staff. The vets also have plans for expanding the services they provide to include Artificial Insemination. The remaining 118 clinics will be transferred by the end of the year. (Original end of project target was 120 clinics; revised target is 160) Poultry Development: As of July 2009, 6,000 households had received 15 eight week old pullets, 25 kg grower feed plus poultry equipment. The first batch of pullets has started laying eggs. (Original target was 25,000 poultry units; revised target is 15,000 units) Component 3 Capacity Building, Implementation, and Monitoring and Evaluation Support Farmer Organization Development (FOD) : 175 male and 107 female producer groups have been formed in seven districts. The project has observed that this process has built social capital, increased social cohesion, and increased capacity for self help and self management. This process has also resulted in increased awareness among groups members about HLP activities and operations. (There were no FOD activities in the original project design) IV. Disbursement and Fund-flow 12. Since November 2008, IDA disbursements in the project have increased (by US$ 6.1 million) as indicated in Table 3 below: Table 3: HLP Disbursements (US$) November 2008 November 2009 IDA Disbursement 7.3 million 13.4 million ARTF Disbursement 1.6 million 3.4 million Contracted commitments of the project have also increased as shown in Table 4 below: 6

7 Table 4: HLP Commitments under Contract (US$) November 2008 November 2009 IDA Commitments 19.7 million 22.2 million ARTF Commitments 4.5 million 6.1 million 13. With the restructuring of the project, the project expects to further accelerate contracted commitments and disbursements in the next six months. The US$ 11 million approved by the ARTF MC in March 2008 will have been fully committed under contract by December 2009 and fully disbursed by December The proposed US$ 9 million will be fully committed under contract by May 2010 and fully disbursed by December Details on commitments and disbursements for the US$ 11 million and the requested US$ 9 million are attached in Annex 3. A detailed procurement plan for the US$ 9 million is also attached in Annex The key activities to be covered by the US$ 9 million include (i) costs of the Lead Facilitating Partner; (ii) completion of the Dairy Development inception report and some follow on activities; (iii) continued activities of the poultry development sub component, and (iv) formation of 400 more groups in the Farmer Organization Development, (v) continuation of the grape value chain pilots. V. Administrator Review 15. The required Administrator Units (Trust Funds, ARTF, Legal, Loans, Rural Development, Procurement and Financial Management) have previously reviewed and cleared the HLP Technical Annex in its entirety as well as the application for US$ 20 million for SY 1387 which was approved by the MC in March