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1 Public Disclosure Authorized Document of The World Bank FOR OFFICIAL USE ONLY PROJECT APPRAISAL DOCUMENT FOR PROPOSED GRANTS Report No: AFR Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized IN AN AMOUNT EQUIVALENT TO SDR 9.9 MILLION (US$15 MILLION EQUIVALENT) TO BURKINA FASO AND IN AN AMOUNT EQUIVALENT TO SDR 19.8 MILLION (US$30 MILLION EQUIVALENT) TO THE REPUBLIC OF COTE D IVOIRE AND A PROPOSED CREDIT IN AN AMOUNT EQUIVALENT TO SDR 29.7 MILLION (US$45 MILLION EQUIVALENT) TO THE FEDERAL REPUBLIC OF NIGERIA AND PROPOSED GRANTS UNDER THE FOOD PRICE CRISIS RESPONSE CORE MULTI DONOR TRUST FUND IN AN AMOUNT EQUAL TO US$6 MILLION EACH TO BURKINA FASO, THE REPUBLIC OF COTE D IVOIRE AND THE FEDERAL REPUBLIC OF NIGERIA AND IN AN AMOUNT EQUAL TO US$1 MILLION TO THE CONSEIL OUEST ET CENTRE AFRICAIN POUR LA RECHERCHE ET LE DEVELOPPEMENT AGRICOLES (CORAF) FOR THE 2 ND SERIES OF PROJECT UNDER THE FIRST PHASE OF THE WEST AFRICA AGRICULTURAL PRODUCTIVITY PROGRAM (WAAPP-1B) September 3, 2010 Agriculture and Rural Development Unit (AFTAR) Sustainable Development Department Africa Regional Integration Department (AFCRI) Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

2 CURRENCY EQUIVALENTS (Exchange Rate Effective March 31, 2010) Currency Unit FCFA 487 = = United States dollars (US$) US$1 US$1 = SDR FISCAL YEAR Burkina Faso: January 1- December 31 Côte d Ivoire: January 1- December 31 Nigeria: January 1- December 31 ABBREVIATIONS AND ACRONYMS AWP&B Annual Work Program and Budget AAA Analytical and Advisory Activity AAP African Action Plan AFD Agence Française de Développement (French Development Agency) AGRA Alliance for a Green Revolution in Africa AGRYHMET Centre Regional de Formation et d Application en Hydrologie Opérationnelle (Regional Education and Training Center in Operational Hydrology) AKIS Agriculture Knowledge Information System ANADER Agence Nationale d Appui au Développement Rural (National Rural Support Agency) APL Adaptable Program Lending (Loan) ARAC African Regional Aquaculture Centre ARCN Agricultural Research Council of Nigeria ARMP Autorité de Régulation des Marchés Publics (Public Procurement Regulatory Authority) AROC Agricultural Research Outreach Center ASPEN Africa Safeguard Policy Enhancement AYP Agricultural Yield Pilot B Billion BMPIU Budget Monitoring and Price Intelligence Unit BN/CRA Bureau National des Chambres Régionales d Agriculture (National Office of the Regional Chambers of Agriculture) BPP Bureau of Public Procurement CAADP Comprehensive Africa Agricultural Development Program CAMES Conseil Africain et Malgache pour l Enseignement Supérieur (African and Malagasy Council for Higher Education) CAN Chambre Nationale d Agriculture (National Chamber of Agriculture) CARBAP Centre Africain de Recherche sur Bananiers et Plantains (African Center for Banana and Plantain Research) CARGS Competitive Agricultural Research Grant Scheme CAS Country Assistance Strategy CFAA CFS Country Financial Assessment Accountability Competitive Fund Schemes CGIAR Consultative Group on International Agricultural Research CIFE Circuit Intégré des Financements Extérieurs (Integrated Circuit for Donor- ii

3 CILSS CIRAD CNRA CNRST CORAF COS CPAR CPIA CQS CRA CTA DAF DfID ECOWAP ECOWAS EIA EMP ESIA ESMF ESMP EU FAAP FAO FARA FCA FESIA FIRCA FM FMA FPCR FRR GDP GFRP GPN Ha IC ICB ICT IDA financed Projects) Comité Permanent Inter-États de Lutte contre la Sécheresse dans le Sahel (Permanent Inter-State Committee for Combating Drought in the Sahel) Centre de Coopération Internationale en Recherche Agronomique pour le Développement (French Agricultural Research Centre for International Development) Centre National de Recherche Agronomique (National Center for Agricultural Research) Centre National sur la Recherche Scientifique et Technologique (National Center for Scientific and Technological Research) Conseil Ouest et Centre Africain pour la Recherche et le Développement Agricoles (West and Central African Council for Agricultural Research and Development) Centers of Specialization Country Procurement Assessment Report Country Policy and Institutional Assessment Selection Based on Consultants Qualifications Chambres Régionales d Agriculture (Regional Chambers of Agriculture) Centre Technique de Coopération Agricole et Rurale (Technical Centre for Agricultural and Rural Cooperation) Directeur Administratif et Financier (Director of Administration and Finance) Department for International Development (United Kingdom) ECOWAS Agricultural Policy Economic Community of West African States Environmental Impact Assessment Environment Management Plan Environmental and Social Impact Assessment Environmental and Social Management Framework Environmental and Social Management Plan European Union Framework for African Agricultural Productivity Food Agriculture Organization Forum for Agricultural Research in Africa Federal College of Agriculture Full Environmental and Social Impact Assessments Fonds Interprofessionel pour la Recherche et le Conseil Agricoles (Interprofessional Fund for Agricultural Research and Extension) Financial management Federal Ministry of Agriculture Food Price Crisis Response Financial rate of return Gross domestic product Global Food Crisis Response Program General Procurement Notice Hectares Individual consultant International Competitive Bidding Information and communications technology International Development Association iii

4 IDRC IFAD IFDC IFPRI IFR IITA INERA INSAH IPR IRR ISRA LESIA M M&E MAHRH MAPP MCC MDG MEF MFP MINAGRI MIPARH MOU NARI NARS NCB NCOS NEPAD NGO NIFFR OHADA ONMP PAFASP PAPSA PAST PDO PEFA PFM PIM PMP PNASA International Development Research Centre International Fund for Agricultural Development International Fertilizer Development Center International Food Policy Research Institute Interim Financial Report International Institute of Tropical Agriculture Institut National de l Environnement et de la Recherche Agricole (National Institute for the Environment and Agricultural Research) Institut du Sahel (Sahel Institute) Intellectual Property Rights Internal rate of return Institut Sénégalais de Recherches Agricoles (Senegalese Agricultural Research Institute) Limited Environmental and Social Impact Assessments Million Monitoring and Evaluation Ministère de l'agriculture, de l'hydraulique et des Ressources Halieutiques (Ministry of Agriculture, Water Resources, and Fisheries) Multi Africa Agricultural Productivity Program Millennium Challenge Corporation Millennium Development Goals Ministère de l'economie et des Finances (Ministry of the Economy and Finance) Mobilizing and Federating Program Ministère de l Agriculture (Ministry of Agriculture) Ministère de la Production Animale et des Ressources Halieutiques (Ministry of Livestock and Fisheries) Memorandum of Understanding National Agricultural Research Institute National Agricultural Research System National Competitive Bidding National Centers of Specialization New Partnership for Africa s Development Nongovernmental organizations National Institute for Fresh Water Fisheries Research Organisation pour l Harmonisation en Afrique du Droit des Affaires (Organization for Harmonization for Business Law in Africa) Office National des Marchés Publics (Public Procurement Regulatory Framework) Projet d Appui aux Filières Agro Sylvo Pastorales (Agricultural Diversification and Market Development Project) Projet d'amélioration de la Productivité Agricole et de la Sécurité Alimentaire (Agriculture Productivity and Food Security Project) Plan d Action Sectoriel Triennal (Three-Year Sectoral Action Plan) Project Development Objective Public Expenditure Financial Accountability Public financial management Project Implementation Manual Pest Management Plan Projet National d'appui aux Services Agricoles (Agricultural Services Support iv

5 PS QAG QCBS R&D R&E RCOE RIAS ROC SBD SIL SPAAR TFP TOR TTL UEMOA US USAID WAAPP WAAPPAC WAAPPOC WCA WDR WECARD Project) Procurement Specialist Quality Assurance Group Quality and Cost Based Selection Research and development Research and extension Regional Centers of Excellence Regional Integration Assistance Strategy Regional Operations Committee Standard Bidding Document Specific Investment Loan Special Program for African Agricultural Research Factor Productivity Terms of reference Task Team Leader Union Économique et Monétaire Ouest-Africaine (West African Economic and Monetary Union) United States US Agency for International Development West Africa Agricultural Productivity Program WAAPP Advisor Committee WAAPP Oversight Committee (Comité de Pilotage du WAAPP) West and Central Africa World Development Report West and Central African Council for Agricultural Research and Development Vice President: Country Directors: Sector Director: Sector Manager: Task Team Leader: Obiageli Katryn Ezekwesili Jamal Saghir (Acting)-Regional Integration Ishac Diwan Burkina Faso Madani M. Tall Côte d Ivoire Onno Ruhl Nigeria Jamal Saghir Karen McConnell-Brooks Abdoulaye Toure v

6 AFRICA West Africa Agricultural Productivity Program APL (WAAPP-1B) CONTENTS Page I. STRATEGIC CONTEXT AND RATIONALE... 1 A. Country and sector issues... 1 B. Rationale for Bank involvement... 2 C. Higher-level objectives to which the Project contributes... 4 II. PROJECT DESCRIPTION... 4 A. Lending instrument... 4 B. Program objective and phases... 5 C. Project development objective and key indicators... 7 D. Project components... 7 E. Lessons learned and reflected in the Project design F. Alternatives considered and reasons for rejection III. IMPLEMENTATION A. Partnership arrangements B. Institutional and implementation arrangements C. Monitoring and evaluation of outcomes/results D. Sustainability E. Critical risks and possible controversial aspects F. Loan/credit conditions and covenants IV. APPRAISAL SUMMARY A. Economic and financial analyses B. Technical C. Fiduciary D. Social E. Environment F. Safeguard policies G. Policy Exceptions and Readiness Annex 1: Country and Sector or Program Background Annex 2: Major Related Projects Financed by the Bank and/or other Agencies vi

7 Annex 3: Results Framework and Monitoring Annex 4: Detailed Project Description Annex 5: Consolidated Project Costs Annex 6: Implementation Arrangements Annex 7: Financial Management and Disbursement Arrangements Annex 8: Procurement Arrangements Annex 9: Economic and Financial Analysis Annex 10: Safeguard Policy Issues Annex 11: Project Preparation and Supervision Annex 12: Documents in the Project File Annex 13: Statement of Loans and Credits Annex 14: Country at a Glance Annex 15: Maps List of Figures Figure 1: Trend in Agricultural TFP in West Africa, (1992=100) Figure 2: Yield Gap in Rain-fed Cropping Systems in West and Central Africa (Potential/Current Yield Ratio) Figure 3: Organizational Chart of WAAPP-1B in Burkina Faso Figure 4: Organizational Chart of WAAPP-1B in Côte d'ivoire Figure 5: Organizational Chart of WAAPP-1B in Nigeria List of Tables Table 1: Change in Agricultural Productivity in Burkina Faso, Côte d'ivoire, and Nigeria Table 2: NCOS host institutions and priority specialization areas in participating countries Table 3: Fish Supply by Sector in Nigeria (000 tons) Table 4: Yield increase results by country vii

8 AFRICA 2 ND SERIES UNDER THE FIRST PHASE OF THE WEST AFRICA AGRICULTURAL PRODUCTIVITY PROGRAM APL (WAAPP-1B) Date: September 3, 2010 Director: Jama Saghir (Acting) Sector Director: Jamal Saghir Sector Manager: Karen Mcconnell Brooks Project ID: P PROJECT APPRAISAL DOCUMENT AFRICA Lending Instrument: Adaptable Program Loan (APL) Project Financing Data [ ] Loan [X] Credit [X] Grant [ ] Guarantee [ ] Other: Team Leader: Abdoulaye Toure Sectors: Agricultural extension and research (100%) Themes: Technology diffusion (29%); Rural services and infrastructure (29%); Export development and competitiveness (14%);Trade facilitation and market access (14%);Regional integration (14%) Environmental screening category: B (Partial Assessment) For Loans/Credits/Others: Total Bank financing (US$ million.): Proposed terms International Development Association (IDA) terms, with a maturity of 40 years, including 10 years of grace period Financing Plan (US$ million) PHASE 1A (already approved) Source Local Foreign Total BORROWERS/RECIPIENTS/LOCAL COMMUNITIES IDA Of which Ghana (US$15 million financed by IDA) Of which Mali (US$15 million financed by IDA) Of which Senegal (US$15 million financed by IDA) PHASE 1B (current project) Source Local Foreign Total BORROWER/RECIPIENT Beneficiaries IDA viii

9 Food Price Crisis Response (FPCR) Core Multi-Donor Trust Fund Of which Burkina Faso (US$15 million financed by IDA) (US$6 million financed by the FPCR Core Trust Fund) Of which Republic of Côte d Ivoire (US$30 million financed by IDA) (US$6 million financed by the FPCR Core Trust Fund) Of which Federal Republic of Nigeria (US$45 million financed by IDA) (US$6 million financed by the FPCR Core Trust Fund) Of which CORAF - (US$1 million financed by the FPCR Core Trust Fund) Total Phase 1B: PHASE 1- Remaining set of countries Source Local Foreign Total BORROWERS/RECIPIENTS IDA Of which Republic of Benin (US$ million financed by IDA) Of which Republic of Niger (US$ million financed by IDA) Of which Republic of Sierra Leone (US$ million financed by IDA) Of which Republic of Togo (US$ million financed by IDA) Of which Republic of Guinea (US$ million financed by IDA) Of which Republic of Liberia (US$ million financed by IDA) Of which The Gambia (US$ million financed by IDA) Of which Cape Verde (US$ million financed by IDA) Of which Guinea Bissau (US$ million financed by IDA) Total Phase 1 (US$ million financed by IDA) PHASE 2 Source Local Foreign Total BORROWERS/RECIPIENTS: Phase countries (Ghana, Mali and Senegal) (US$ million financed by IDA) International Development Association ix

10 (IDA) (US$ million financed by IDA) BORROWER/RECIPIENT: Phase 1B countries (Burkina Faso, Côte d Ivoire, Nigeria) (US$ million financed by IDA) International Development Association (IDA) (US$ million financed by IDA) BORROWER/RECIPIENT: Phase following set of countries: Benin, Niger, Sierra Leone, Togo Liberia, Guinea, Guinea Bissau, Cape Verde and The Gambia (US$ million financed by IDA). International Development Association (IDA) (US$ million financed by IDA) Total Phase 2(US$ million financed by IDA) Total of Phase 1 and Phase 2 (IDA) Borrowers/Recipients: Phase 1B: Burkina Faso, Republic of Côte d Ivoire, Federal Republic of Nigeria, CORAF Responsible Agencies: Conseil Ouest et Centre Africain pour la Recherche et le Développement Agricoles (CORAF) 7, Avenue Bourguiba BP 48 Senegal Tel: (221-33) Fax: (221-33) paco.sereme@coraf.org Burkina Faso Ministry of Agriculture, Water Resources and Fisheries P.O Box 7029, Ouagadougou, Burkina Faso Programme d Appui aux Filières Agro-Sylvo-Pastorales Unité de Coordination du Projet (PAFASP) 01 BP 6285 Ouagadougou 01 Burkina Faso Tel. (226) Fax (226) Côte d Ivoire Ministry of Agriculture Immeuble de la CAISTAB Abidjan Plateau Tel (225) Fax :(225) x

11 Fonds Interprofessionnels pour la Recherche et le Conseil Agricoles (FIRCA) Codody 2 Plateaux, 7eme Tranche Rue L BP 3726 Abidjan 01, Côte d'ivoire Tel : (225) /82 Fax : (225) packah@firca.ci / firca@firca.ci Nigeria Federal Ministry of Agriculture Area 11, PMB 135 Garki, Abuja Tel Fax agricminister@rosecom.net Agricultural Research Council of Nigeria (ARCN) Agricultural Research House, Plot 223D, Cadastral Zone B6, Mabushi District, P. M. B. 5026, Wuse, Abuja, Nigeria. website: Estimated disbursements (Bank FY/US$m) FY Annual Cumulative Project implementation period: Start : September 28, 2010 End: June 30, 2016 Expected effectiveness date: January 1, 2011 Expected closing date: June 30, 2016 Estimated disbursements FPCR (Bank FY/US$m) FY Annual Cumulative Does the project depart from the CAS in content or other significant respects? [ ]Yes [ x] No Ref. PAD I.C. Does the project require any exceptions from Bank policies? Ref. PAD IV.G. [ ]Yes [x] No Have these been approved by Bank management? [ ]Yes [ ] No Is approval for any policy exception sought from the Board? [ ]Yes [ x ] No Does the project include any critical risks rated substantial or high? [x ]Yes [ ] No Ref. PAD III.E. Does the project meet the Regional criteria for readiness for implementation? [ x ]Yes [ ] No Ref. PAD IV.G. Project development objective Ref. PAD II.C., Technical Annex 3 The development objective of WAAPP1-B is to generate and accelerate adoption of improved xi

12 technologies in the participating countries top agricultural commodity priorities areas that are aligned with the sub-region s top agricultural commodity priorities as outlined in the ECOWAP. Project description Ref. PAD II.D., Technical Annex 4 Component 1: Enabling conditions for sub-regional cooperation in the generation, dissemination and adoption of agricultural technologies aims at setting up a sustainable mechanism for funding agricultural technologies generation and adoption, strengthening technical and regulatory capacity, including property rights, mainstreaming climate change and gender into agricultural technology generation and adoption. Component 2: National Centers of Specialization (NCOS) by strengthening the operational capacities of national agricultural research systems of participating countries in national priority areas, which are aligned to regional priorities. Component 3: Funding of Demand-driven Technology Generation and Adoption aims at accelerating the adoption of readily available technologies through the generation and dissemination of readily available improved technologies, facilitation of access to improved genetic material and the development of a yield prediction tool. Component 4: Project Coordination, Management, Monitoring and Evaluation aims at ensuring an effective and efficient management and coordination of the project at the national and regional levels. Which safeguard policies are triggered, if any? Ref. PAD IV.F., Technical Annex 10 Environmental Assessment (OP/BP 4.01) Pest Management (OP 4.09) Significant, non-standard conditions, if any, for: Ref. PAD III.F. Conditions of Board presentation: None Board presentation: September 28, 2010 Conditions of effectiveness: For the IDA Grants and Credit: For each of the three countries, that a Subsidiary Grant Agreement has been executed on behalf of the Recipient and CORAF; and In addition for the Republic of Côte d Ivoire, that the Financial Agreement and the Execution Agreement have been executed on behalf of the Recipient and FIRCA. For the FPCR Core Trust Fund Grants: for each of the three countries, cross-effectiveness condition linked to the effectiveness of the corresponding Financing Agreement for the same country and with the effectiveness of the CORAF FPCR Core Trust Fund Grant Agreement; in addition for the Republic of Côte d Ivoire, that the Financial Agreement and the Execution Agreement have been executed on behalf of the Recipient and FIRCA; for CORAF, cross-effectiveness condition linked to the effectiveness of the Financing xii

13 Agreements with each of the three countries and the effectiveness of the FPCR Core Trust Fund Grant Agreement with each of the three countries. Covenants applicable to Project implementation: For the IDA Grants and Credit and, as applicable, for the FPCR Core Trust Fund Grants: for each of the three countries, each Recipient shall, not later than three (3) months after the Effective Date, establish and, thereafter maintain throughout project implementation, a national oversight or advisory committee under terms of reference satisfactory to the Association vested with responsibility for providing policy guidance and for overseeing the Project ( Oversight or Advisory Committee ). The Oversight or Advisory Committee shall be chaired by the recipient s minister responsible for the agriculture (or his/her designee) and its composition shall include representatives from the government, stakeholders, farmers and the private sector. The Oversight or Advisory Committee shall meet at least twice each Fiscal Year to undertake, inter alia, the review and approval of the draft Annual Work Program and Budget (AWP&B) and the approval of the annual report to be prepared by the Project Coordinator not later than October 31 each year to follow-up on, and assess the progress in, the carrying out of the precedent AWP&B. for each of the three countries, in order to maximize the benefits to be derived from the Project, each Recipient shall: (a) select: (i) the core facilities of the national center of specialization proposed to be constructed and rehabilitated under Part 2.3 of the Project; and (ii) the public research stations proposed to be upgraded under Part 3.3 (ii) of the Project, applying the following criterion: the facility or the station has been identified by the center s management on the basis of consultations carried out with its researchers during the preparation of the priority list of works and during the validation of the design of the works; and (b) thereafter, furnish to the Association for approval for financing out of the proceeds of the Grants or Credit the facilities and stations as so selected. for each of the three countries, prior to the award of each contract for works under Parts 2.3 or 3.3 (ii) of the Project, each Recipient shall: (i) furnish to the Association a written attestation for the specific site where the works will be undertaken that the works shall not cause or result in Resettlement; (ii) submit to the Association for its review and approval the related site-specific Environmental and Social Impact Assessment (ESIA) or Environment and Social Management Plan (ESMP), as the case may be, in form and substance satisfactory to the Association; (iii) disclose the site-specific ESIA or ESMP as approved by the Association; and (ii) thereafter, ensure that the relevant mitigation and monitoring provisions of the ESIA or ESMP, as the case may be, are appropriately included in the works contract concluded for the site and that they are implemented in the carrying out of Parts 2.3 and 3.3(ii) of the Project. for each of the three countries and CORAF, each Recipient shall follow and apply at all times in the implementation of Parts 2 and 3 of the Project the provisions of the Pest Management Plan (PMP) in a timely manner, ensuring that: (i) mitigation and monitoring xiii

14 measures acceptable to the Association are designed and implemented with due diligence and employing appropriate environmental expertise; and (ii) adequate information on the implementation of the measures contained in the PMP is appropriately included in the Progress Reports to be prepared under the Project. for each of the three countries and CORAF, each Recipient shall take all measures required so that [each Participating Country s entity in charge of the component or CORAF]: (i) screen, under Parts 2.1 and 3.1 (b) of the Project, the activities proposed to be financed under the Research Proposals and Grants proposals submitted for financing out of the proceeds of Grants or the Credit and establish that such activities avoid Resettlement; (ii) ensure that each Beneficiary: (A) carry out an appropriate site-specific Environmental and Social Impact Assessment (ESIA) or Environment and Social Management Plan (EMP), as the case may be, for each such activities in accordance with the provisions of the ESMF and in form and substance satisfactory to [Participating Country s entity in charge of component or CORAF]; and (B) disclose the site-specific ESIA or ESMP as approved by [Participating Country Country s entity in charge of component or CORAF]; (iii) verify (through its own staff, outside experts, or existing environmental/social institutions) before approving the Research Proposal or Grant proposal that the activities meet the environmental and social requirements of appropriate national and local authorities and that it is consistent with the Association s applicable environmental and social assessment and safeguard policies and complies with the environmental and social review procedures set forth in the Project Implementation Manual or the manual for the existing competitive agricultural research grants scheme, as the case may be; and (iv) thereafter, ensure that the relevant mitigation and monitoring provisions of the ESIA or ESMP, as the case may be, are appropriately implemented. The following is stated in the Financing Agreements as a financial covenant to be completed four (4) months after effectiveness date: the appointment of the external auditors on the basis of terms of reference and with qualifications qualification and experience satisfactory to the Association in the three countries and in CORAF. For the Financing Agreement and Grant Agreement Agreements with Côte d'ivoire: the Recipient shall cause FIRCA:(i) to recruit, not later than one (1) month after the Effective Date, an accountant, and an internal auditor on the basis of terms of reference and with qualifications and experience satisfactory to the Association; and (ii) to upgrade, not later than three (3) months after the Effective Date, the computerized financial management system to be used for the Project. For the Financing and Grant Agreements with Burkina Faso: for such purposes, the Recipient shall, not later than three (3) months after the Effective Date: (i) recruit for the PCU an accountant, and a financial controller on the basis of terms of reference and with qualifications and experience satisfactory to the Association; and (ii) acquire the accounting system to be used for the Project. For the Financing and Grant Agreements with Nigeria: The Recipient shall take all measures required on its behalf to ensure that the Project activities are incorporated into ARCN s computerized financial system not later than three (3) months after the Effective Date. xiv

15 Each Recipient and CORAF shall carry out its respective Parts of the Project pursuant to its obligations under (in the case of Burkina Faso and Nigeria which are a party to the Protocol), and in accordance with environmental safeguards and international good practice and standards consistent with those of the Cartagena Protocol on Biosafety. xv

16 I.STRATEGIC CONTEXT AND RATIONALE A. Country and sector issues 1. The Economic Community of West African States (ECOWAS) is home to 290 million people in 15 low-income countries. About 65 percent of the population lives in rural areas. Most of these people derive their food and livelihoods from agriculture, which generates 35 percent of the regional gross domestic product (GDP) and over 15 percent of exports. The region is neither self-sufficient in food production nor food secure, particularly in the North (the Sahel). About 20 percent of regional imports are food products. Agricultural productivity is low. As a net importer of cereals and livestock products and an exporter of raw materials, West Africa is severely affected by the current volatility in global food and fuel prices and the recent financial crisis. The changing and increasingly variable climate places additional burdens on rural livelihoods and natural resources that were already vulnerable. The region will continue to face strong challenges in feeding its growing and increasingly urban population, building a strong regional agricultural market, and promoting sustainable development. 2. The World Development Report 2008: Agriculture for Development (World Bank 2007) concluded that agricultural growth is the key to achieving overall growth, reducing poverty, and increasing food security for the rural poor. It emphasized that growth in agricultural production in Africa has been driven mainly by expanding cultivated area, a strategy that is far from sustainable. An alternative strategy is to create the conditions that enable agricultural productivity to increase a goal to which the proposed Project contributes. Growth originating in agriculture is four times as effective in reducing poverty as growth originating outside of the agricultural sector. Increases in agricultural growth depend greatly on improvements in agricultural productivity, and investments in agricultural research and technology are among the most important determinants of agricultural productivity. In West Africa, the potential returns to investments in generating and disseminating agricultural technology are high 46 percent on average, according to the International Food Policy Research Institute (IFPRI) (2009) but funding for this activity remains very low. 3. Schlenker and Lobell (2010) 1 used historical crop production and weather data in a robust model of yield response to climate change and concluded that by 2050, the estimated average aggregate production in sub-saharan Africa would fall by 22 percent for maize, 17 percent for sorghum and millet, 18 percent for groundnut, and 8 percent for cassava. These results emphasize that although it is urgent to speed the adoption of improved crop varieties and of livestock breeds that have already been developed, it is equally urgent for agricultural research (nationally, regionally, and globally) to develop new technologies that will perform well in the future under climate stress in Africa. 4. There is substantial room for regional integration to strengthen food security and promote agriculture-led growth. The New Partnership for Africa s Development (NEPAD) calls for 3 percent annual growth in agricultural productivity through technology generation and dissemination and 6 percent growth in agricultural GDP to reach the Millennium Development Goals (MDGs) by To this end, NEPAD has initiated and brought before the donor community the Comprehensive Africa Agricultural Development Program (CAADP). This program has four pillars, the fourth being agricultural research, technology dissemination, and 1 Environment Research Letters, 5 (2) February

17 technology adoption. The agricultural policy of the West African states (ECOWAP) provides the framework for implementing the CAADP in West Africa. At the regional level, the agricultural investment plan of ECOWAS is structured around three mobilizing programs that constitute the framework for major actions to integrate the agricultural sector over the next five years. The first program focuses on promoting strategic products for food sovereignty; the second program aims at promoting an overall environment favorable to regional agricultural development; and the third program focuses on reducing food vulnerability and promoting sustainable access to food. 5. By supporting the generation and adoption of improved agricultural technologies, the WAAPP will help to further ECOWAP s objectives. The WAAPP is aligned with the three mobilizing programs of ECOWAS to foster regional integration of agriculture, and the first WAAPP countries (under WAAPP- 1A) already work on the high-priority value chains identified in one of the mobilizing programs: roots and tubers in Ghana, dryland cereals in Senegal, and rice in Mali. The countries joining the WAAPP under the proposed Project (WAAPP -1B) will invest in other strategic ECOWAS value chains, expanding the range of commodities to include fruits and vegetables (mangoes and onions) in Burkina Faso, bananas and plantains in Côte d Ivoire, and aquaculture (catfish and tilapia) in Nigeria. 6. The justifications for regional integration are strong. First, under the leadership of ECOWAS, the CAADP process has matured with the signing of country compacts emphasizing regional coordination and cooperation. Second, regional integration in generating and adopting agricultural technology helps to overcome the small-country problem of marshalling the resources and the critical mass of researchers for sound, efficient research programs. Third, lessons from WAAPP-1A strongly validate the program s emphasis on a regional approach to technology generation to help countries confront those challenges. Fourth, CORAF (the West and Central African Council for Agricultural Research and Development, WECARD) has established the capacity to play a coordinating role, facilitate knowledge sharing, and provide relevant advisory services to the national agricultural research systems (NARS) in the region. Finally, and most important, it is essential that the countries within the region join forces to deal successfully with the emerging and continuing challenges posed by the food and fuel crises, the global financial crisis, and climate change. B. Rationale for Bank involvement 7. The WAAPP is a two-phase, ten-year, horizontal APL to support the implementation of ECOWAP through the implementation of CAADP s fourth pillar. The first phase (WAAPP-1A) started in June 2007 and involved Ghana, Mali, and Senegal. Successful results in these countries (in harmonizing regulations, setting up centers of specialization, operating demand-driven research systems, and sharing researchers and released technologies) justify the Bank s support for extending the program to all ECOWAS member states, as envisaged originally. The design of this program demonstrates the Bank s long-term commitment to generating and disseminating technology and knowledge, building capacity, and fostering regional integration. The Bank already supports a number of ECOWAS member states at the national level in technology generation and dissemination and is well suited to create synergies and added value among national projects. 8. The WAAPP will continue to be a key instrument for implementing the Bank s Regional Integration Assistance Strategy (RIAS) for sub-saharan Africa. The WAAPP will support activities to foster regional integration and would be an essential element for speeding economic 2

18 growth in Africa and reaching the MDGs. The WAAPP will also support the implementation of Country Assistance Strategies (CAS), all of which recognize the need to generate and disseminate agricultural technology to raise agricultural productivity, increase economic growth, improve food security, and reduce poverty. 9. West Africa can expect significant benefits from regionally integrated efforts to generate and disseminate agricultural technology. Concerted action to address shared agricultural and environmental problems will enable the region to strengthen food security and accelerate agricultural growth. Additional productivity gains can be expected from regionally integrated agricultural input markets, especially for fertilizer and seed. The development of joint research programs for subsets of countries would use human and financial resources more efficiently, prevent wasteful duplication, and create the critical mass that is absent from most national research systems at present. The resulting cost savings, economies of scale, and spillovers would increase the productivity and competitiveness of agriculture in the region and put certain research prospects (which are now remote or nonexistent) within economic reach. This combined capacity would attract more partnerships with international centers of excellence and more private sector investments to supplement public funding, further increasing the efficiency, quality, and financial sustainability of the region s technology generation and dissemination system. In addition, the implementation of the first phase thus far indicates that the WAAPP is a powerful tool to stimulate constructive competition between countries and to scale up best practices to the regional level. 10. The extension of WAAPP to new countries in addition to the first three (Ghana, Mali and Senegal) meets IDA s regional project eligibility criteria. Eventually the WAAPP will: (i) support up to 10 additional West African countries, including Benin, Burkina Faso, Côte d Ivoire, The Gambia, Guinea, Liberia, Niger, Nigeria, Sierra Leone, and Togo; (ii) generate social and economic benefits that spill across national boundaries; (iii) support the agricultural strategies of regional economic communities; and (iv) strengthen the platform for regional policy harmonization. The WAAPP will provide a regional framework for ECOWAS countries to collaborate in implementing national and regional agricultural strategies for technology generation and dissemination. It will further this collaboration through the development of specialized centers for technology generation and dissemination, which will also serve as regional knowledge sharing centers. 11. The Bank s comparative advantage in this operation lies in its recognized leadership in supporting agricultural research and development within and between countries and regions. Aside from supporting individual countries, the Bank has provided international support, for example, for the Consultative Group on International Agricultural Research (CGIAR) and the former Special Program for African Agricultural Research (SPAAR), now the Forum for Agricultural Research in Africa (FARA). The Bank is uniquely positioned to capitalize on the lessons of past interventions and to create synergies and value-added across its current operations. Other development partners look to the Bank to facilitate high-level policy harmonization between countries. The Bank is particularly well equipped to share global knowledge and expertise in technology generation and dissemination, notably through its Agriculture Knowledge Information System (AKIS). The WAAPP follows the AKIS paradigm and the guiding principles of the Framework for African Agricultural Productivity (FAAP) to promote innovative, marketoriented technologies that reflect farmers' circumstances and environmental concerns. 3

19 C. Higher-level objectives to which the Project contributes 12. Through WAAPP, the Bank will contribute to the broad objectives of CAADP and the ECOWAS Agriculture Policy (ECOWAP) of achieving significant growth in agricultural GDP to reach the MDGs by 2015 and to fight against food insecurity and poverty. As expressed in the 2003 African Union Maputo Declaration, CAADP is based on (i) the pursuit of a 6 percent average annual growth rate at the national level in the agricultural sector and (ii) the allocation of 10 percent of national budgets to agriculture. The CAADP process involves the signing of compacts between African governments and the various national, regional, and international agencies that are committed to the CAADP Agenda, as well as the signing of a regional partnership compact with ECOWAS. 13. The Regional Partnership Compact was successfully signed by the ECOWAS Commission and its partners in November 2009 in Abuja for the implementation of ECOWAP. It outlines the three regional Mobilizing and Federating Programs (MFPs) that provide the framework for high-priority integrative actions in the agricultural sector for the coming five years. As noted, the WAAPP is one of the Bank s instruments to support the implementation of this compact, in particular the first MFP: MFP 1 promotes strategic products for food sovereignty by supporting regional initiatives and strategies for the development of agri-food value chains, in order to improve rural population incomes, reduce food dependency, and modernize production systems. This program initially focuses on six strategic products that are regional priorities for the next five years: rice, maize, cassava, livestock, meat, and milk. MFP 2 promotes a global environment conducive to regional agricultural development. The objective is to create a business, physical, informational, and institutional environment that fosters a massive transformation in production systems and agricultural value chains in West Africa. MFP 3 reduces food vulnerability and promotes sustainable access to food, to meet the needs of vulnerable populations and reduce the structural vulnerability of populations in both rural and urban areas. 14. As mentioned, the WAAPP also contributes to the CAS of each ECOWAS member state. The assistance strategies of countries participating in WAAPP-1A (Ghana, Senegal, and Mali) and WAAPP 1-B (Burkina, Côte d Ivoire and Nigeria) look specifically to the WAAPP to complement their agricultural services, strengthen their producers organizations projects, and contribute to their strategic objectives in rural development. II.PROJECT DESCRIPTION A. Lending instrument 15. The lending instrument of the Program is a regional IDA of 10-year APL consisting of two phases, each lasting five years. The APL follows a horizontal approach that started in 2007 with IDA credits to three countries (Ghana, Mali, and Senegal) and will expand its geographic coverage to all candidate ECOWAS countries. The GFRP was set up in May 2008 by the World Bank Group in coordination with the United Nations High-Level Task Force on food security to 4

20 address the severe food crisis and the need for prompt action. FPCR was subsequently established to support the GFRP. It has already received contributions of Australian Dollars 50 million from the Australian government, 80 million from the government of Spain, 3 billion Korean Won from the Republic of Korea, and Canadian Dollars 30 million from the government of Canada. The Russian Federation has also allocated $15 million for the Kyrgyz Republic and Tajikistan. The European Commission has allocated 101 million to support operations in 9 countries. The FPCR will provide US$19 million to cofinance the project. B. Program objective and phases 16. The WAAPP is a program to support the implementation of ECOWAP through the implementation of CAADP s fourth pillar. Thus the development objective of the Program is to contribute to sustained agricultural productivity growth in the ECOWAS region s top priority commodity subsectors. The priority subsectors were identified in a study commissioned by CORAF from IFPRI and adopted under ECOWAP. In addition to aquaculture, which was not covered in the study, the Program will focus on enhancing the development of roots and tubers, livestock, rice, maize, sorghum and millet, fruits and vegetables, and oilseeds. The IFPRI/CORAF study found that these commodity subsectors make the greatest contribution to the region s agricultural growth and food security and can thus contribute substantially to reducing extreme poverty by The Program will, therefore, support ECOWAS countries in: (i) creating the enabling conditions for technological cooperation by harmonizing regulations; (ii) marshalling the financial and human resources to develop a sound research program for each priority commodity within regional centers of specialization; (iii) sharing technologies that are already available as well as the technologies that will be developed and released by the centers of specialization; (iv) scaling up the regional adoption of these technologies by developing common strategies to promote the use of improved genetic materials, yield-enhancing technologies, postharvest technologies, and best practices to accelerate sustainable, positive change in agricultural productivity. Through these efforts, the Program will be an important instrument for ECOWAS countries to implement the recently adopted ECOWAP. 18. The first phase of the program started under WAAPP -1A in June 2007 and involved three countries: Ghana, Mali and Senegal. Successful results achieved in these countries (in the domains of harmonizing regulations, setting up centers of specialization, operating demanddriven research systems, sharing researchers, knowledge and best practices) justify Bank s support for a horizontal extension of the program to all ECOWAS member states: Nigeria, Burkina Faso, Côte d Ivoire, Niger, Benin, Togo, Guinea, Guinea Bissau, Sierra Leone, Liberia The Gambia and Cape Verde. At the same time the first two years of implementation also yielded some lessons with respect to improving the design and implementation of the Program. Furthermore a Quality Assurance Group (QAG) learning review (in November 2009) suggested that we strengthen the Results Framework of the Program and put emphasis on adoption of new technologies. Therefore, in order to reflect these lessons learned the design, the results framework and the instrument of the Program have been revised accordingly. 19. The design of the program will now be a mixed (horizontal and vertical) APL: the horizontal dimension (for horizontal expansion of the program) will allow participation of the remaining countries as and when they express demand and demonstrate readiness to participate in the program, whereas the vertical dimension will allow for continued support for initial 5

21 participants, and further strengthening of regional links on the part of new entrants to the program. 20. The readiness criteria will be: (i) availability of national IDA allocation to benefit from the regional allocation; (ii) a functioning national agricultural research system (NARS) to take advantage of the Program; and (iii) the achievement of readiness conditions (sound country proposal, Environmental and Social Impact Assessment (ESIA), Project implementation Manual (PIM), Project Administrative and Financial manual and Procurement plan for the first 18 months). The second criteria on well functioning NARS is not applicable to countries coming out of conflict (Guinea Bissau, Liberia, Sierra Leone) as well as small countries (The Gambia, Togo, Cape Verde) which will be considered eligible subject to fulfilling criteria number one and three. They will be supported to rebuild or strengthen their research system and enhance cooperation with the countries hosting centers of specialization. 21. The second phase, while building on the first phase s structure and achievements, is a deepening and expansion phase that will see further strengthening of the enabling conditions for regional cooperation and M&E, consolidating the centers of specialization initiated in phase 1, mainstreaming the demand-driven competitive agricultural grant scheme and scaling up adoption of the released improved technologies with an emphasis on adoption of improved seeds, plants, breed stocks and fingerlings. 22. The triggers for moving from phase 1 to 2 are geared towards ensuring that enabling conditions are in place in support of generating significant spill-over effects. In line with this, the following triggers are proposed: (i) the country has ratified the common regulations for the registration of genetic materials and pesticides adopted at ECOWAS level; (ii) the country has established equivalent functional national registration system for plant materials and pesticides; (iii) a NCOs has been established and operational (this will be required for countries where an NCOS has been established); (iv) a sustainable funding mechanism scheme for the Competitive Agricultural Research Grant Scheme (CARGS) has been adopted by the Government; and (v) achievement of key outcomes of first phase, including release of at least three new technologies by NCOs, minimum of 15 percent farm level productivity increase for released technologies, and achievement of targeted adoption rate of improved varieties by project beneficiaries. 23. The outcome at the end of the 10-year program will be: (i) 30 percent productivity increase (farmers yield) achieved over the control technology in at least two of the region s top priority commodity sub-sectors in each participating country; and (ii) adoption of improved varieties by at least 70 percent of the beneficiaries of the project, with clear spill-over effects across participating countries. 24. The total initial cost of the 10-year overlapping APLs covering ECOWAS 15 member countries was estimated at US$450 million in IDA financing in An increase of about US$100 million would be necessary to address the new challenges of: (i) quick response to the food crisis; (ii) accelerated adoption and; (iii) climate change. Therefore the estimated updated total IDA financing of the Program would be US$550 million. Parallel or co-financing are 6

22 expected from Governments and beneficiaries as well as from Trust Funds managed by the Bank, contribution from other donors (AGRA, European Union, USAID, MCC, AFD, International Fund for Agricultural Development) and from the private sector. C. Project development objective and key indicators 25. The three countries that currently meet the readiness conditions are Nigeria, Côte d Ivoire, and Burkina Faso, and will be covered under the proposed Project, WAAPP-1B (the subject of this Project Appraisal Document). These three countries will receive the following IDA allocation, including one-third from their national IDA and two-thirds from the regional IDA: Burkina Faso (US$15 million), Côte d Ivoire (US$30 million), and Nigeria (US$45 million),. A co-financing of US$19 million equivalent from the - Food Price Crisis Response (FPCR) Core Multi Donor Trust Fund will support accelerated adoption of technologies, because the value chains supported by WAAPP are central to achieving food security targets in West Africa. The supported increase in food production of targeted value chains will also help mitigate the effects of high food prices across the region. 26. The development objective of WAAPP-1B is to generate and accelerate adoption of improved technologies in the participating countries top agricultural commodity priorities areas that are aligned with the sub-region s top agricultural commodity priorities as outlined in the ECOWAP. 27. The key Project outcome indicators are: (i) total direct beneficiaries of the Project have reached 2,000,000 ; (ii) at least three improved technologies have been released by each center of specialization; (iii) for all the released technologies there will be an improvement in yield by at least 15 percent over the control technology; (iv) a total area of 800,000 hectares covered by the improved technologies disseminated by the project; and (v) an adoption of improved varieties by at least 1/3 rd of the beneficiaries of the project. The regional spillover effects will be measured at intermediate outcome level by the number of technologies released by NCO and demonstrated in at least two ECOWAS countries outside the country of origin. D. Project components Component 1: Enabling Conditions for sub-regional Cooperation in the Generation, Dissemination, and Adoption of Agricultural Technologies (US$8.37 million; IDA: US$8.30 million) 28. Inadequate, ineffective, or nonexistent institutional frameworks at the national level may limit the generation, dissemination, and adoption of improved technologies and tools. Even where improved technologies and tools may have been generated at the national level, inadequate, ineffective, or nonexistent regulations and standards may hinder their official release. At the regional level, ECOWAS has adopted common procedures for the release of genetic materials and pesticides based on frameworks developed by UEMOA (West African Economic and Monetary Union) and CILSS (Permanent Inter-State Committee for Combating Drought in the Sahel). In addition, work is in progress to develop common policies for the production and marketing of fertilizers as well as the establishment of a common IPR framework. Very few countries have adopted these regulations, which are crucial for creating a regional domain in which technology can be developed and provided to the benefit of African farmers and businesses. 7