Increase agricultural production to address soaring food prices through distribution of agricultural inputs. Total cost Total Cost :

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1 ACTION FICHE FOR ERITREA 1. IDENTIFICATION Title/Number Increase agricultural production to address soaring food prices through distribution of agricultural inputs. Total cost Total Cost : Aid method / Method of implementation EC Contribution: Joint co-financing with FAO. Project approach joint management. DAC-code Sector Food Security 2. RATIONALE 2.1. Sector context Eritrea is a highly food insecure country and has in the past been one of the largest per capita receivers of food aid. Moreover, Eritrean agriculture is highly dependent on rainfall. In good years, Eritrea produces 60% or its domestic requirements while in bad years this is only 25%. In normal years, 70% of population are poor net food buyers (both from domestic production and imported) and of those 40 to 60% are considered food insecure (without the means to either produce or procure sufficient food). Eritrean agriculture is exposed to recurrent droughts which affect food production in the country. The global food crisis has exacerbated the existing situation. For example, the maize price in the capital increased by 145 % between May 2007 and May For this reason, food security has been set a high priority sector within the Eritrean Government's development strategy. It's strategy to achieve food security is based on 4 basic principles: (1) Diversifying agricultural production; (2) Focusing on high-value crops, livestock and fisheries; (3) encouraging small-scale irrigated agriculture and (4) establishing strategic food reserves. In recent years, yields have increased, which can be attributed to an extension of the area under irrigation and to the improved provision of agricultural inputs. The proposed project will further support the government in its efforts by promoting agriculture and livestock through input provision and distribution, as well as improvement of water management. Such project is essential for providing vulnerable or affected populations with opportunities for maintaining and achieving self-reliance and is in line with Eritrean objective of self-sufficiency in food security. EN12 Error! Unknown document property name. EN

2 2.2. Lessons learnt In the European Commission 2004 Mid Term Review Conclusion, it is indicated that given the country's huge requirements in terms of food, the development of a Food Security Strategy must be promptly and adequately addressed. The Government has thus developed the "National Food Security Strategy" which focuses on the expansion of irrigated crop production to increase food availability at national level. The project will comply with the strategy as it aims to promote small-scale irrigated agriculture. Due to the unstable situation of the country, flexibility should be taken into account during the project design in order to allow rapid changes if needed. This has been considered during the project design Complementary actions. In response to the Eritrean Government strategy, the European Commission set Food Security and Rural Development as the main focal sector for the 10 th EDF cooperation support. An amount of 70 million to be committed between 2008 and 2013 has been allocated to enhance food security, through increased domestic production and improved food access at household level. In addition, 2 proposals (1 from an NGO and one from an International Organisation) were selected to improve water supply in rural areas under the Water facility ( 3M). Allocations of 5.4 million aimed at supporting Internally Displaced Persons and 4.9 million in response to soaring food prices from the 9 th and 10 th EDF B-envelopes have recently been made. This allocation is planned for a peri-urban safety net programme. Through the food security and NGO co-financing budget lines, the European Commission supports the implementation of the Eritrean Food Security Information System ( 3 million); an input distribution project ( 4.7 million) and various NGO projects which aim at helping the most vulnerable part of the population ( 4.6 million). Moreover, The European Commission's Humanitarian Aid Department (ECHO) provides nutrition packs, basic health services and agricultural support ( 4 million). A number of food security activities are being implemented with the support of other development partners. Those include (1) the FAO input distribution project and technical assistance ( 0.5 million); (2) The IFAD long term agricultural development programs ( 30 million between 2003 and 2013) and (3) the World Bank second Integrated Early Childhood Development Project ( 3 million for health and nutrition) Donor coordination. Food Security actions in Eritrea are discussed in the Food Security Technical Group of the Development Partners Forum. The present proposal will link with and complement the on-going emergency agricultural development interventions. However, next to efforts to improve coordination among donors, efforts should also be made to enhance involvement of the Eritrean government in this coordination process as the Government does not yet participate in the established forum. There have been differences of opinion between the Government and donors on allocation criteria and management of food aid. EN13 Error! Unknown document property name. EN

3 3. DESCRIPTION 3.1. Objectives The overall objective of the proposed project is to alleviate the effects of soaring food prices on the food security of the most vulnerable population of Eritrea. The specific objective is to restore a minimum food production capacity among the most vulnerable population in Eritrea Expected results and main activities The project is divided in 5 components: (1) seed multiplication; (2) distribution of agricultural inputs; (3) establishment of small-scale fattening program and distribution of dairy goats and (4) improvement of water management activities and (5) constraint analysis. The main foreseen activities and results are detailed hereunder: Seed multiplication: The quality of seed currently produced by farmers in Eritrea is very poor and the progressive degeneration of the genetic material is reducing further the yield of cereals. Therefore, the distribution of improved seeds of major food crops (sorghum, pearl millet and wheat) will allow vulnerable farmers to increase their production within a relatively short timeframe. 300 selected farmers will receive improved base seeds of wheat, sorghum and pearl millet for seed multiplication. As the seed multiplication will be off season, the farmers will be sited in areas with effective and well-organised irrigation facilities and will have been involved in previous FAO seed multiplication projects 17. Up-dated trainings on seed multiplication will be given to the farmers and to 50 government extension agents. The trainings will be based on the FAO crop guideline: "Quality Declared Seeds Technical guidelines on standards and procedures". 50 tonnes of base seeds will be distributed to produce 1180 tonnes of seeds. Distribution of agricultural inputs: The locally produced seeds will then be distributed to about vulnerable farming families. The selection of beneficiaries will be done in close collaboration with the Ministry of Agriculture according to the criteria such as : availability of irrigation, availability of suitable land, willingness to accept new agricultural practices... Priority will be given to female headed households and families affected by HIV/AIDS. Other crop seeds such as maize and potatoes will also be distributed. Alongside with the seeds, beneficiaries will get fertilisers and agricultural tools. Moreover, the beneficiaries will be provided access to related trainings. The trainings will be done on a continuous base through 100 government extension agents who will be trained by the project on best cultural practices. Technical assistance will be as well given to the farmers through regular field visits by the government extension agents. Establishment of small-scale fattening program and distribution of dairy goats: 4000 sheep, 4000 dairy goats and parent stock chicken will be distributed 17 OSRO/ERI/601/SWE EN14 Error! Unknown document property name. EN

4 to 4000 vulnerable households together with 5 tonnes of improved forage seeds and 400 tonnes of animal feed. This distribution will come-along with trainings on forage production, feed processing and treatment technologies. Moreover 50 extension officers will be trained on the same topics. Beneficiaries will produce improved forage at their back-yard using the forage seed provided by the project. They will then start the fattening and dairying activities at home. The beneficiaries will be supported by an animal heath care team. Each beneficiary will receive 1 sheep and 1 goat. In addition, parent stock chicken for poultry raising will be distributed. Improvement of water management activities: Small scale irrigation equipments (pressurized pumps and siphoning equipments) will be distributed to vulnerable households. They will be trained on improved water harvesting technologies alongside 100 extension officers. The aim is to improve the use of water diversion structures and earth embankments in cropping fields to avoid the risk of water stress during the time of insufficient rainfall. This will allow to cover about additional ha with horticultural crops and will assist households during the off season 2009/2010. Constraint Analysis: This component will identify a critical path among all the actions potentially needed to create a conductive socio-economic environment for increasing farmers' productivity and incomes. The overall purpose is to remove the most critical constraints. The analysis will be done by the Agricultural Minister officers with the support of FAO technical agents. It will be done in a participatory manner with direct involvement of the farmers and other stakeholders. It will cover the analysis of project results at the end of each production. Feedback from farmers and other stakeholders will be consolidated through end-of season workshops at relevant levels (e.g. farm level, village community level, district level and national level). In order to ensure the sustainability of the project, the proposed intervention have been tailored to respond to the needs of the Government and to provide a sound basis for the development of the agro-pastoralist sector. The sustainability of the project will be reinforced by involving the Eritrean Government at all stage of the project. The Ministry of Agriculture in Asmara, Zoba (regional) and sub-zoba (subregional) levels will be involved in planning and monitoring all activities undertaken in the field related to this project. Final identification of project sites and beneficiaries will be carried out in close consultation with the Ministry of Agriculture at sub-regional level, the Ministry of Local Government (MoLG) and village councils. The input supplied will be indentified and cleared by FAO jointly with the Ministry of Agriculture and the National Agricultural Research Institute (NARI). The input distribution will be carried out in collaboration with Ministry of Agriculture and village councils Risks and assumptions The main risk concerns the strained relations between donors and the Eritrean Government in connection to food security. The implementing partner will therefore have to evaluate the national political climate before starting the programme and adapt the timing and the activities of the program to the situation on the ground. EN15 Error! Unknown document property name. EN

5 For project sustainability, the Ministry of Agriculture is expected to allocate a number of extension staff to the programme. As previous cooperation activities indicated at times a lack of skills among the staff of governmental institutions. The project will include training of extension staff to ensure sustainability. On the technical side, the quality of seeds currently produced by farmers in Eritrea is poor and the progressive degeneration of the genetic material is reducing further the cereal yield levels. The seed multiplication component in the project will address this issue Crosscutting issues On the social level, priority will be given to female headed households and families affected by HIV/AIDS during the beneficiaries' selection. The programme addresses environmental issues by promoting the use of adapted fertilisers to maintain soil fertility, improving the water management activities to minimise soil erosion and improve water use, and promoting forage culture to avoid overgrazing. Good governance and Human Rights are sensitive issues in Eritrea. The involvement and participation of communities and local governments in the process of selection and distribution will foster good governance at the local level Stakeholders Direct beneficiaries will be approximately households. They will include internally displaced persons (IDPs), returnees from war and women-headed households who will be provided access to quality agricultural inputs and related trainings. The programme is also expected to have a positive impact on rural non-farm population and indirectly on urban dwellers through increased food availability. The regional and sub-regional Eritrean administration and the village councils are the main programme partners. They will be fully engaged in the planning and monitoring of all activities and will be involved in the final identification of project sites and beneficiaries. 4. IMPLEMENTATION ISSUES 4.1. Method of implementation The project will be joint-managed through the signature of a contribution agreement with FAO Procurement and grant award procedures All contracts implementing the action must be awarded and implemented in accordance with the procedures and standard documents laid down and published by the FAO. EN16 Error! Unknown document property name. EN

6 Budget and calendar The resources allocated to this programme are 3.4 million (see details hereunder). This is an indicative budget which will be discussed during the contracting process. Budget Items (Preliminary indicative Budget) EN17 Error! Unknown document property name. EN Euros Human resources (salaries and per diem) 457,000 Travel (international and local) 53, 000 Equipment and supplies (vehicles, furniture, fattening stock, animal feed, agricultural tools, crop seeds, fertilizers, irrigation equipment). 2, 500,000 Services (project monitoring, visibility, office costs) 86,000 Other costs (training contract, input distribution contracts, technical support, mo ) 36,000 Subtotal Direct costs 3,132,000 Contingency reserve (1.5% direct cost subtotal) 46,000 Total Direct costs 3,177,000 Indirect costs: Administrative overheads (max 7% direct costs) 222,000 Total 3,400,000 The duration of the project will be 24 months Performance monitoring. The performance of the project will be closely monitored by FAO. The EC delegation in the country will also ensure adequate monitoring on the basis of key indicators established in the Logical Framework, through progress reports and participation to relevant meetings/committees. External Results Oriented Monitoring missions by European Commission may be carried out Evaluation and audit. The project will undergo a final evaluation, to be carried out by the European Commission. Audits will be carried out by FAO according to its Financial Regulations, Rules and Directives. In addition, expenditure verifications may be carried out by the European Commission Communication and visibility. In accordance with the visibility provisions under the EC-UN Financial and Administrative Framework Agreement (FAFA) and with the EC-UN Joint Action Plan on Visibility signed in September 2006, the EC and the implementing organisations will work together to ensure appropriate visibility actions for the

7 programme as a whole, as well as for specific interventions and activities under the programme. Standards regarding visibility will be derived from the "EU visibility guidelines for external actions" ACTION FICHE FOR ETHIOPIA 1. IDENTIFICATION Title/Number Total cost Aid method / Management mode Support to the Productive Safety Net Programme (PSNP) CRIS EC contribution : 20 M Project approach joint management with an international organization (World Bank) DAC-code Sector Food security 2. RATIONALE 2.1. Sector context Chronic food insecurity is a salient feature of rural Ethiopia in any year. Over the course of the last decade, Ethiopia has received an average of 700,000 MT of food aid annually. The numbers of households living on the margins of food insecurity increases during crises, as households liquidate the very assets they need for future productivity. Repeated shocks lead the rural poor into a spiral of poverty which results in an increased number of chronically food insecure caseload over time. There is also need to address problems related to land tenure, land use, cultivation and consumption patterns. Also, promotion of new technologies for the processing of agricultural produce as well as the marketing and storage aspects of agricultural produce is long overdue. Food needs have largely been met in the past through emergency relief. While this mechanism has saved millions of lives in Ethiopia over the last two decades (and continues to do so) it has failed to protect livelihoods, or even assets addressing mostly humanitarian needs. The Productive Safety Nets Programme (PSNP), has started in 2005 as one of three major components of the GoE Food Security Programme. The PSNP represents an innovative approach to move away from responding to chronic hunger through emergency appeals towards a more predictable response to address these recurring problems. Targeted and timely transfers to the poor allow them to retain factors of production and to integrate into society's productive strata, providing them with a springboard for development. PSNP also has a productive aspect as more than eighty percent of beneficiaries participate in micro-projects such as soil and water conservation, construction and/or maintenance of rural access roads, water supply schemes (cash for work) that in the long run will have a positive contribution in enhancing agricultural productivity as well as increasing access to rural infrastructures. EN18 Error! Unknown document property name. EN