ACTION FICHE FOR SIERRA LEONE

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1 ACTION FICHE FOR SIERRA LEONE 1. IDENTIFICATION Title/Number Total cost Aid method / Method of implementation Small holders' production support in Sierra Leone. 16,2 million EC Contribution: 16,2 million ( 10,8 million for FAO and 5,4 million for WFP). joint co-financing with FAO and WFP. Project approach joint management DAC-code Sector Food Security 2. RATIONALE 2.1. Sector context In Sierra Leone, the soaring international food prices, coupled with inadequate domestic production of cereals have resulted in significant food inflation. Between January and July 2008, the price of rice, the main staple food, has increased by about 60% on average throughout the country. Prices of other food commodities have shown a robust upward trend. With GNI per capita estimated at US $200, Sierra Leone is one of the poorest countries in the world. In 2004, approximately 3,4 million of people on a total population of 4,9 million were below the poverty line. According to the World Bank, an additional 200,000 people are expected to have been pushed below the poverty line due to the increased costs of food commodities. The Government of Sierra Leone has taken actions to mitigate the soaring food prices. The Ministry of Agriculture, Forestry and Food Security (MAFFS) in coordination with FAO, WFP, IFAD and World Bank has prepared a National Agricultural Response Programme (NARP). This programme is focusing on three major mitigation and response strategies: mitigation of price increase through reduction in tariffs on imported cereals; mitigation of rising price impact through safety nets; and increasing of national food production by providing various incentives. The proposed projects will focus on the third aspect of the integrated response strategy and this through a joint action with FAO, WFP Lessons learnt In 2006, an evaluation of the previous ten years of EC cooperation with Sierra Leone found that too little attention had been paid to pro-poor growth issues. The projects proposed hereafter are thus in line with the conclusion of the evaluation, 8 8

2 as they aim at giving support to the most vulnerable small farmers in order to increase their productivity. Most of the lessons learned from the evaluation revolve around the difficulties of operating in a "post-conflict" environment where capacity is limited and state institutions are fragile 44. Recognition of the government's limited capacity requires donors to be much more "harmonised" when it comes to delivering assistance. Therefore, in order to improve the effectiveness of operations, it has been decided that the project would be jointly financed and managed by FAO, WFP. In accordance with the internal assessment done by FAO and WFP in June 2008, a special attention will be dedicated to the smallholder food deficit farmers Complementary actions For the period , the European Commission planned to spend 95 million to rehabilitate infrastructure (mainly roads) to facilitate food mobilization from rural areas to urban areas. A further 16 million will form the future 10 th EDF Agriculture-for-Development (A4D) programme and will be used to facilitate propoor economic growth and sustainable development in rural areas ( 12 million) and to support of the decentralisation process in the agriculture sector ( 4 million). An additional 16 million has been engaged for Food Security and Rehabilitation projects, funded under the Food Security Thematic Programme (FSTP) and previous Food Security budget lines. Furthermore, 2.7 million has been allocated from the FSTP 2008 programme in response to soaring food prices. This allocation will be used for safety nets programme in Freetown area. Finally, through the 10 th EDF B-envelope an additional 6,42 million has been allocated to Sierra Leone in response to the food price crisis, which will assist in mitigating the macro-economic and budgetary effects of the Government response programme. In parallel, the World Bank will contribute to basic services delivery to vulnerable groups through the "Global Food Response Program" (GFRP) (meals to school children and patients) (Grant value of 5,4 million approved in July 2008). The FAO stimulates rice production through agricultural input distributions ( 0,5 million/year). IFAD is supporting seed multiplication through a Rehabilitation and Community Poverty Reduction Project ( 6,5 million for 3 years). The WFP runs the "Protracted Relief and Recovery Operation" which provides food assistance to vulnerable population in the southern and eastern districts ( 23,5 million to be spent between July 2007 and June 2009) Donor coordination As response to the food price crisis, the Ministry of Agriculture, Forestry and Food Security (MAFFS) has developed the National Agriculture Response Programme (NARP) jointly with donors involved in food security in Sierra Leone. The NARP is 44 The decade-long civil war ended in

3 a programme approach which brings several projects together under one action implemented by the Operation Feed the Nation (OFTN) of the MAFFS. To comply with EC communications for fragile states and the Paris Declaration on aid effectiveness, the proposed projects has been discussed with the Government of Sierra Leone and amongst the main donors from the very early stage of their drafting. They will be implemented in partnership with FAO and WFP as those 2 organisations have already a wide experience in Food Security intervention in the country and are participant of the National Programme. The proposed projects, targeting rural populations, complement the EC contribution through the Food Security Thematic Programme which targets urban and peri-urban populations. 3. DESCRIPTION 3.1. Objectives The overall objective of the intervention is to reduce the soaring international food price effects on the poorest and most vulnerable part of the population of Sierra Leone. The specific objective is to increase food production by small-scale farmers Expected results and main activities Two projects are planned for this intervention. The first one focuses on increasing the productivity of the small scale farmers and the second one will rehabilitate agricultural infrastructure using the Food for Work concept. Project 1: Direct support to agricultural production and management support to the National Agriculture Response Programme (NARP) implementation. The project purpose is to improve the food security status of households through supporting the establishment of Agricultural Business Centre within Agricultural Business Units (ABU). It will also support the ministry of agriculture to assist and to mentor the entire network of ABU. An ABU is a self-help cooperative community structure composed of approximately 40 households. Each of them is organised around a Farmer Field School (FFS) and will be able to manage an Agricultural Business Centre (ABC) that provides locally relevant services to the rural community on a non-profit cost-recovery basis. The services provided may include sale of agricultural inputs, micro-credit, rental of laboursaving equipment, storage of seeds, transport of harvest The main activities and results are: Establishment of Agricultural Business Unit (ABU) and their Agricultural Business Centres (ABC): The site selection will be done in collaboration with the Ministry of Agriculture and the support for the set-up of the units will be done with the help of NGOs. The selection criteria from the National Agricultural Response Programme (NARP) will be used. This means among other criteria that the ABUs 10 10

4 will be established around already registered Farmer Field Schools, the members will have to be in agreement with cost-sharing and in-kind contribution, at least 50 ha of lowland rice area has to be available to the farmers for a 10-year lease Business Units will be established. Input distribution: farm tools, planting material, labour saving machinery, fertilizers and small livestock for intensive food production will be distributed (105 package of machinery tools and 1000 tons of fertilisers and seeds). Trainings: Technical and management training will be given to ABU membership, local traditional leaders, District Councils, shop keepers and equipment operators. Those trainings will be done though the Farmer Field Schools which take place in the field. A Farmer Field School is a learning process based on discovery methods of extension. Capacity Building of the Ministry of Agriculture, Forestry and Food Security: Procedures and standards for the provision of support to the ABU will be established, extensive management training for district directors and extension staff will be organised, monitoring and evaluation training will be given to headquarters staff to assist in the management and impact evaluation of the programme. The project 1 will be implemented through FAO in close collaboration with WFP. As mentioned above, the project will be implemented through the Operation Feed the Nation (OFTN) of the Ministry of agriculture. The Ministry of agriculture will thus be the main government partner for implementing the project. It will provide technical supervision and coordination structures. Direct implementing partners will be international and national NGOs, who will work directly with both, decentralized structures of the MAFFS and the District Councils as well as with the Community Based Organisations (CBOs) in the village. The District Officers of the MAFFS will oversee the preparation, the implementation and the monitoring of the ABU. They will conduct local technical backstopping and ensure the participation of District Council in the project. Project 2: Support to increased agricultural production and marketing potential. The purpose of this project is to support the Agricultural Business Unit established under the project 1. This will be done through Food for Work and Food for Training at the level of the Agricultural Business Unit. The main activities and anticipated results are: Food for Work: The rehabilitation of hectares of Inland Valley Swamp, hectares of small holder tree plantations, 200 kms of small feeder roads and the building of 60 units of post harvest structures and Agricultural Business Centre (ABC). Approximately people will participate, representing beneficiaries as each participant will receive a household ration for five persons. Vulnerable groups, including resource-poor women, unemployed youths and elderly-headed households will be targeted using participatory approaches

5 Food for Training: Training of the members of about 100 ABC will be done through Farmers' Field Schools. The trainees will receive food rations. The training will be undertaken by the MAFFS with support from FAO. Purchase for Progress: This component aims at purchasing 5000 tons of rice from local farmers' associations, including, to the extent possible, from areas rehabilitated through the integrated efforts of this program. The proposed project will be part of the current WFP Protracted Relief and Recovery Operation (PPRO ). The two projects have been built together to present a sustainable solution to reduce food security problems in the country. Rehabilitation of productive asses and agricultural infrastructure will contribute to improve productivity of the plantations and inland valley swamps. Access to markets and other services will be improved through road rehabilitation. By linking food for work to training of project participants and members of ABU, participants will acquire lasting agricultural skills and opportunities to improve their own production or to get employment opportunities in the agricultural sector. Secondly, the projects are part of the Operation Feed the Nation which has support from the highest government level. They are part of the overall strategy of the Government. The Ministry of Agriculture will thus continue to develop in the same direction as this project is contributing i.e. development of self-financed Agricultural Business Centres. Therefore, the projects promote sustainability through emphasizing a private sector commercial approach supported by MAFFS inputs to get started Risks and assumptions. The intervention aims at increasing staple food production. In a first stage, the WFP will purchase part of the locally produced rice to distribute it within the programme. At the end of the project, the assumption is that Sierra Leone will have expanded its revenue base and that its population will be able to purchase the locally produced crops and will not depend on donor money anymore for this purpose. To reduce the risk of donor dependency, the European Commission provides support to key productive and income generating sectors such as mining and fisheries which will provide income diversification opportunities. Further income opportunities will arise from projects supported in the environmental sector Crosscutting Issues A special attention will be given to gender issues during the full programme through support of women's cooperatives, training of women and unemployed young people, and food safety nets for pregnant and lactating women. The support to increase production aims at developing sustainable agricultural system by giving the priority to the use of environment-friendly inputs. Tree plantation in small farms, combined with agro-forestry component, will enrich the projects and constitute an important element of this programme. Based on sustainable watershed management principles, the projects will further ensure that 12 12

6 ecological services, provided by natural forests, will be sustained and utilized in an environmentally sound manner. Good governance will be mainstreamed throughout all components of the project. The beneficiaries' selection and the input distribution will respect the principles of good governance and will be done in full transparency, based on objective and clearly established selection criteria. Apart from this, the projects will closely work with decentralized institutions and Community Based Organisations, which will further increase local commitment and ownership of the Food Facility Programme Stakeholders The final beneficiaries will be the most food insecure farmers and the most insecure urban and peri-urban population: the first group will receive support to increase its production and thus have a better household income and the second group will have a better access to cheaper food. The Direct beneficiaries will be the members of the Agricultural Business Units (ABU). The ABUs are farmer-based organisations and consist of Farmer Field School graduates, youth groups, women's cooperatives and other community-based organisations. The Ministry of Agriculture, Forestry and Food Security (MAFFS) will be the lead Government counterpart of FAO and WFP to implement the intervention. 4. IMPLEMENTATION ISSUES 4.1. Method of implementation The project will be jointly managed through the signature of two contribution agreements, one with FAO and the second one with WFP 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 International Organisation concerned Budget and calendar EC maximum contributions: 16,2 million ( 10,8 million for project 1 and 5,4 million for project y 2). FAO budget (project 1): Budget Items Human resources (Local Staff, International staff, Per diems for travel. Travel (international and local; staff and events) Equipment and supplies (vehicles, furniture, farmer tools, spare parts, seeds and EURO 1,575, ,000 4,748,

7 fertilisers ). Local Office (vehicle, office rent, office supplies and other services) Services (studies, auditing, evaluation, seminars, visibility ) Other (Letter of Understanding with partners, contracts for infrastructure building, reporting, technical support.) Sub-total Direct Costs Contingency reserve (1,5% Direct costs) Total Direct eligible costs of the action Indirect costs: Administrative overheads (7%) Total 249, ,000 2,323,000 9,945, ,000 10,094, ,000 10,800,

8 WFP budget (project 2): Budget Items Human resources (Local Staff, International staff, Per diems for travel. Equipment and supplies (office equipment, agricultural tools, seeds ). Local Office (vehicle costs, office rent, office supplies and other services) Services (evaluation, seminars, Vulnerability analysis and mapping, visibility ) Other (Food commodities + transport, storage and handling ) Food Commodities Cereals 5992 Tons Food Commodities Pulses 1207 Tons Food Commodities Vegetable oil 380 Tons Transport, storage and handling Sub-total Direct Costs Indirect costs: Administrative overheads (7%) Total EURO 317, , , ,000 4,332,000 (2,209,000) (469,000) (306,000) (1,348,000) 5,271, ,000 5,400,000 The activities will start in 2009 and have duration of 2 years Performance monitoring. The performance of the project will be closely monitored by FAO and WFP. The EC Delegation in the country will also ensure adequate monitoring on the basis of key indicators established in the Logical Framework, progress reports and participation to relevant meetings/committees. External Results Oriented Monitoring (ROM) 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 and WFP according to their Financial Regulations, Rules and Directives. In addition, expenditure verifications may be carried out by the European Commission

9 4.6. 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 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"

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