I. SENEGAL Agricultural Value Chains Resilience Support ... · Currency equivalents v Weights and...

Dates de mission: Septembre 2015 Date du document: Numéro du projet: Numéro du rapport: -TD Division Afrique de l'Ouest et du Centre (AOC) Département de la gestion des programmes

I.

SENEGAL

Agricultural Value Chains Resilience Support Project

(PARFA)

Detailed Design Report

Main Report and Annexes

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Table of Contents

Currency equivalents v

Weights and measures v

Acronyms and abbreviations vi

Map of the project area ix

Executive summary x

Logical framework xiv

I. Strategic context and rationale 1

II. Project description 5

III. Project implementation 13

IV. Project costs, financing, benefits and sustainability 18

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Tables

Table 1: Summary of risks and migitation measures 18 Table 2: Summary of project costs by component 19 Table 3: Summary of project costs per donor Table 4: Co-financing of the Project 21 Table 5: PARFA’s added value to PAFA-E activities 22 Table 6: Fees, gross product and gross margin per crop 24 Table 7: Additional production per product with the Project 25 Table 8: Summary of the Sensitivity Analysis 26 Figure 1: Food security – Theory of Change Error! Bookmark not defined.

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Currency equivalents

(As of September 2015) Currency Unit = Senegal (CFA francs) USD 1.00 = 580 francs CFA (XOF) 1 160 CFA (XOF) = USD 2____

Weights and Measures

1 acre (ac) = 0.405 hectare (ha) 1 hectare = 2.471 acres 1 kilogram (kg) = 2.200 pounds (lb) 1 000 kg = 1 metric tonne (t) 1 kilometre (km) = 0.62 mile (mi) 1 metre (m) = 1.09 yards (yd) or 3.28 feet (ft) 1 square metre (m2) = 10.76 square feet (ft2) 1 acre (ac) = 0.405 hectare 1 hectare (ha) = 2.47 acres 1 millimetre (mm) = 0.03937 inch (“)

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Acronyms and abbreviations

AFM Administrative and Financial Manager ANCAR Agence nationale de conseil agricole et rural ANSD Agence nationale de la statistique et de la démographie APD Avant-projet détaillé APS Avant-projet sommaire ARD Agence régionale de développement ARMP Agence de régulation des marchés publics ASPRODEB Association sénégalaise pour la promotion du développement à la base ASUFOR Association d'usagers de forage AWPB Annual workplan and budget BAD Banque africaine de développement BARVAFOR Projet de barrages de rétention et de valorisation de forages BIT Bureau international du travail BM Banque mondiale CCIA Chambre de commerce, d'industrie et d'agriculture CEDEAO Communauté économique des États de l'Afrique de l'Ouest CFAF CFA franc CONGAD Conseil des organisations nongouvernementales d'appui au développement COSOP Country Strategic Opportunities Programme CP Comité de pilotage CPMT Country Programme Management Team (Equipe de gestion du Programme-pays) CR Commune rurale CSA Commissariat à la sécurité alimentaire (Food Security Commissariat) CSE Centre de Suivi Écologique (Ecological Monitoring Centre) CSIF Country SLM Investment Framework CT Technical committee DA Designated account DAPSA Direction de l'analyse, de la prévision et des statistiques agricoles DBRLA Direction des bassins de rétention et des lacs artificiels DCMP Direction centrale des marchés publics DCP Document de projet DEM Direction de l'entretien et de la maintenance (hydrauliques) DEPA Direction de l'élevage et des productions animales DPES Document de politique économique et sociale DPVE Direction de la planification et de la veille environnementale DRDR Direction régionale de développement rural DSRP Document de stratégie de réduction de la pauvreté EIRR Economic internal rate of return FAO Food and Agriculture Organization of the United Nations FED Fonds européen de développement FNDASP National Fund for Agro-silvo-pastoral Development FO Farmer organization FONGS Fédération des organisations non gouvernementales du Sénégal FPMA/FEM Least Developed Countries Trust Fund (GEF) GASFP Global Agriculture and Food Security Programme GEF Global Environment Facility GIE Groupement d'intérêt économique IAP Integrated Approach Pilot. IAP-FS Integrated Approach Pilot on Food Security

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IED Afrique Innovation, environnement, développement Afrique IGA Income-generating activity IMF Institution de microfinance INP Institut national de pédologie IRR Internal rate of return ISRA Institut sénégalais de recherche agricole ITA Institut de technologie alimentaire JICA Japan International Cooperation Agency LOASP Agro-Silvo-Pastoral Orientation Law M&E Monitoring and evaluation MAER Ministry of Agriculture and Rural Equipment MEDD Ministry of Environment and Sustainable Development MEFP Ministry of the Economy, Finance and Planning MEPA Ministry of Livestock and Animal Production MER Micro-entreprise rurale MPER Micro et petite entreprise rurale MSP Medium Size Project NEES Note d'évaluation environnementale et sociale NEPAD New Partnership for African Development NGO Non-governmental organization NPV Net present value NSIF-SLM National Strategic Investment Framework for Sustainable Land Management OMD Objectifs du millénaire de développement PAO Professional Agricultural Organization PADAER Support to Agricultural Development and Rural Entrepreneurship PAFA Agricultural Value Chains Support Project PAFA-E PAFA Extension PANA Plan national d'adaptation aux changements climatiques PAO Professional Agricultural Organization PARFA Agricultural Value Chains Resilience Support Project PASA Projet d'appui à la sécurité alimentaire PASYME Programme d'appui au système de suivi-évaluation du programme FIDA PCU Project Coordination Unit PDDAA Programme détaillé pour le développement de l'agriculture africaine PDV Plan de développement villageois PES Emerging Senegal Plan PFNL Produits forestiers non ligneux PLD Plan local de développement PLFO Professional livestock farming organization PNAE Plan d'action pour l'environnement PNIA National Agricultural Investment Programme PO Professional organization PPAAO Programme de productivité agricole en Afrique de l'Ouest PPM Plan de passation de marchés PRACAS Accelerated Programme for Agriculture in Senegal PRODAM Agricultural Development Project in Matam PROMER Promotion of Rural Entrepreneurship Project PU Pastoral Unit RGPHAE General Population Housing, Agriculture and Livestock Census RMP Revue à mi-parcours RPM Responsable de passation des marchés SCA Stratégie de la croissance accélérée SDG Sustainable Development Goal

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SIPA Société d'intensification de la production agricole SLM Sustainable land management SME Small- and medium-sized enterprise SNDES Stratégie nationale de développement économique et social SNDS Stratégie nationale de développement de la statistique SPR Soil protection and restoration SSE Monitoring and Evaluation System STAR Système transparent d'allocation des ressources (FEM) SWC Soil and water conservation SYGRI Results and impact management system TdR Termes de référence UE Union européenne UEMOA Union monétaire et économique ouest-africaine UNIDO United Nations Industrial Development Organization WFP World Food Programme

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Map of the project area

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Executive summary1

Background. With a gross domestic product (GDP) per capita of USD 1,070 in 2014, Senegal is among the poorest countries in the world. The annual growth rate was on average only 3.4 per cent during the last decade. The weak economic performance of the country is due to the importance of the agricultural sector, an unfavourable climate for investment and business (bad governance, lack of infrastructure, lack of human resources) and a loss of competitiveness. The agricultural sector employs about 55 per cent (RGPHAE 2013) of the active population and contributes about 8 per cent of GDP. The growth rate of agricultural production is slightly less than the population growth rate (2.9%) and continues to drop.

Rationale. The Senegalese Government has expressed interest in participating in the regional pilot programme for food security, the Integrated Approach Pilot for Food Security (IPA-FS) of the Global Environment Facility (GEF). Accordingly, the country has mobilized GEF 6 funds (2014-2018) through IFAD and United Nations Industrial Development Organization (UNIDO), which operate as GEF agencies, to carry out a new project in this framework. The Agricultural Value Chains Resilience Support Project (PARFA), which focuses on improving the resilience of the agricultural value chain, sustainably managing the natural resources, and institutionalizing the sharing of experiences in these areas is fully aligned with national strategies, including: (i) the Emerging Senegal Plan (PES); (ii) the Agrosilvopastoral Orientation Law (LOASP); (iii) the National Agricultural Investment Programme (NAIP); (iv) the Accelerated Programme for Agriculture in Senegal (PRACAS); and (v) the National Strategic Investment Framework for Sustainable Land Management (NSIF-SLM). PARFA interventions are complementary to the PAFA-Extension (PAFA-E) activities, but also to other projects in IFAD’s portfolio and to projects of other technical and financial partners. PARFA is based on a methodology that integrates an ecosystemic approach to sustainable development of the agricultural sector. This will result in: (i) institutional support and funds mobilization for sustainable water and soil management through financing windows such as the National Agro-sylvo-pastoral Development Fund (FNDASP); (ii) better coverage of the NSIF-SLM to improve the coherence of the strategies and activities; (iii) a pilot investment that demonstrates the positive impacts of a sustainable development of the value chains (production and processing); and (iv) an operational environmental monitoring system for better planning and decision making, and improving the sustainability and resilience of agricultural sectors.

Objectives. PARFA’s overall goal is to contribute to improving the economic situation and the ecological environment of rural communities. The development objective of the Project is to improve the food security of small-scale farmers as well as their resilience2 to environmental degradation and climate change.

Outcomes. The three expected outcomes will be: (i) multi-stakeholder platforms include the issues of environmental degradation and climate variability in their activities; (ii) the resilience of the agricultural value chains is improved; and (iii) an effective mechanism for monitoring and evaluating environmental impact and food security is operational.

Project area and targeting. PARFA will cover the PAFA-E intervention area, i.e.: four regions (Kaolack, Fatick, Kaffrine and Diourbel) in the groundnut basin in the Centre and North, and one region (Louga) in the sylvo-pastoral area. It will target mainly: (i) small and medium-sized crop and livestock family farms, ensuring the inclusion of the most vulnerable households, youth (under 35) and women; (ii) rural micro- and small enterprises (MSEs); and (iii) the professional organizations (POs), market operators (MOs) and value chain organizations.

1 The mission consisted of : Naoufel Telahigue, Environment and Climate Change Expert, GEF/IFAD; Jean Charles Heyd, IFAD

Consultant, Head of Technical Mission; Leandro Bullor, Agro-economist; Madeleine Diouf, IFAD Consultant, Institutional Expert; Magatte Wade, IFAD Consultant, Rural Engineering Expert, Ibrahima Sall, IFAD Consultant, Monitoring and Evaluation Expert; Ngolo Diarra, UNIDO Consultant, Post-harvest and Processing Expert; and Dhaga Bruno, UNIDO Consultant, Energy Expert. Meryem Sghir, Aminata Fall, Alois Mhlanga and ahmidou of UNIDO contributed to the preparation of the Project Design Report.

2 According to FAO, resilience is the ability to prevent disasters and crises as well as to anticipate, absorb, accommodate or recover

from them in a timely, efficient and sustainable manner. This includes protecting, restoring and improving livelihoods systems in the face of threats that impact on agriculture, nutrition, food security and food safety.

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Phasing. Since PARFA is executed under PAFA-E, the duration of its intervention will be in line with that of PAFA-E and will last four years in order to end at the same time as PAFA-E.

Project components. Since PARFA is integrated into the GEF’s Integrated Approach Pilot on Food Security (IPA-FS) regional programme, its coordination will be the same as that of the latter and includes the three components shown below.

Component 1. Support to multi-stakeholder platforms

PARFA will support cross-cutting coordination and harmonization efforts through existing mechanisms to promote a coherent multi-stakeholder approach to resilience and environmental sustainability linked to food security in the context of agricultural value chains. NSIF-SLM provides a unifying set-up of platforms to promote the objectives of Component 1 of PARFA.

Sub-component 1.1. Capacity building of actors at the national, regional and local levels. PARFA will support the education and training of key actors (policy makers, development actors, including civil society and beneficiary representatives) on the issues of resilience and environmental sustainability in agricultural value chains. It is expected to carry out: (i) two national workshops and 20 regional workshops, bringing together a total of 2,500 persons; (ii) communications activities; and (iii) four national training sessions (100 people trained), training of ten regional trainers and nine regional training sessions (900 people trained).

Sub-component 1.2. Promotion of mechanisms for coordinating and integrating best practices. PARFA will support the promotion of mechanisms scaling up good practices within the framework of NSIF-SLM and value chain platforms to remove bottlenecks in the sustainability and resilience of agricultural value chains. These good practices will also have to be taken into account in the development and updating of national policies and strategies. Activities will focus on: (i) the financial aspects of implementing the sustanable land management (SLM)/resilience window; (ii) the legal aspects of implementing the pastoral units (PUs); and (iii) institutional aspects, by promoting integrated approaches to natural resources management. Two discussion workshops and four regional exchange and dissemination platforms will also be supported.

Component 2. Upscaling of sustainable and resilient good practices

Sub-component 2.1. Sustainable water management. In order to make better use of surface water and secure the valley lands against extreme floods and sea water intrusion, PARFA will: (i) the develop 450 ha of valley lands (dikes, regulation weirs, parcel developments) for rice cultivation and market gardening; (ii) rehabilitate/create five ponds that will mobilize a total of 10,000 m3 of pastoral water; and (iii) construct/rehabilitate six anti-salt dikes for the recovery of 300 ha of land/protection of 300 ha of land against salinization.

Sub-component 2.2. Sustainable land management. To fight against the phenomenon of degradation that affects many lands, PARFA will promote: (i) soil and water conservation (SWC) and soil protection and restoration (SPR) of 800 ha of flood land; (ii) the rehabilitation and exploitation of mangroves and land under their influence on an area of about 1,000 ha in the Saloum Delta.

Sub-component 2.3. Sustainable energy and the increased value of crop and livestock products. Under the expertise and management of United Nations Industrial Development Organization (UNIDO), the Project will promote the use of renewable energy and the increased value of products, which complements interventions carried out by the PAFA-E. PARFA will support the set-up and implementation of, and training on: (i) 20 solar pumping systems at market garden sites enabling the cultivation of 20 ha during the off-season; (ii) ten biomethanation systems with a total capacity of 50 kilowatts; and (iii) 20 pilot equipment projects (four per region), which includes a total of a hundred production units aiming at a reduction of post-harvest losses and appropriate processing/development of natural resources.

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Component 3. Monitoring and evaluation of environmental impact and of Project results

Sub-component 3.1. Monitoring and evaluation of environmental impact. The activities conducted by the Centre de Suivi Écologique (CSE, Ecological Monitoring Centre) will address: (i) the implementation of an information system; (ii) capacity building of actors in the information system; (iii) the establishment of the baseline of the indicators related to the level of carbon sequestration, biodiversity, SLM, and water quality; (iv) regular monitoring of these indicators; and (v) integration of environmental monitoring in the information system of the grassroots organizations.

Sub-component 3.2. Monitoring and evaluation of activities and of Project results. The aim of monitoring and evaluation system of PARFA, which relies on the monitoring and evaluation system of PAFA-E, will be to provide information on the performance of the Project implementation and to enrich the lessons learned and the conclusions for a comparison between "with project" and "without project" situations.

Sub-component 3.3. Knowledge management. PARFA, in synergy with the knowledge management activities of PAFA-E, will strengthen the collection and dissemination of information that is useful to the value chain actors at the local, regional and national levels, as well as strengthen the capitalization of activities and methods implemented by the IFAD’s and UNIDO projects as well as by other projects carrying out activities similar to those of PARFA

Implementation. PARFA is under the authority of the Ministry of Agriculture and Rural Equipment (MAER). The Steering Committee will be the same as that of PAFA-E but extended to GEF’s operational focal point, and the ministry responsible for energy and the ministry responsible for industry. The Presidency of the Steering Committee will be held by MAER. Project supervision will be jointly carried out by IFAD, UNIDO and government representatives.

The planning, coordination as well as the monitoring and evaluation of activities will be carried out by the PAFA-E Coordination Unit (PCU) based in Kaolack, and strengthened by administrative and technical staff. For the implementation of field activities, the PCU and UNIDO will establish collaboration and services agreements with implementing partners and providers. Specialized institutions – CSE, Innovation, environnement, développement Afrique (IED Afrique, Institut national de pédologie (INP), Institut de technologie alimentaire (ITA), etc. – as well as NGOs, umbrella POs and other stakeholders have proven expertise and experience, and will be recruited on a competitive basis of results-based contracts in order to implement field activities. Activities funded through IFAD will be coordinated by the PCU of PAFA-E according to the administrative and financial procedures in force within PAFA-E. Activities under the authority of UNIDO will be managed through national institutions under sub-contracts directly managed by UNIDO from its headquarters in Vienna in line with the procedures of UNIDO and the GEF. The UNIDO senior officer operating at the PCU of PAFA-E will be tasked with providing advisory support and the monitoring of activities.

Costs and financing. Baseline costs of Project amount to USD 9.3 million (CFAF 5.39 billion), plus 12 per cent contingency, for a total cost estimated at USD 10.43 million, or CFAF 5.54 billion. The costs per component of the baseline costs are: (i) 8.4 per cent for Component 1 "Support for multi-stakeholder platforms"; (ii) 79.7 per cent for Component 2, "Scaling up of, sustainable and resilient good practices " and (iii) 8.6 per cent for Component 3, "Monitoring and evaluation of the environmental impact and of Project activities". Project management costs amount to 4.7 per cent of the baseline costs. PARFA will be financed by: (i) a GEF grant amounting to USD 7.219 million, of which USD 3.58 million will be managed by IFAD (34.3%) and USD 3.64 million by UNIDO (34.9%); (ii) a Government contribution of USD 1.65 million (15.8%), which corresponds to the duties and taxes of goods and services purchased by the Project; (iii) a beneficiary contribution estimated at USD 366,517 (3.5%) and (iv) a PAFA-E contribution of USD 1.19 million (11,5%). Co-financing is estimated at USD 28.54 million and will be mobilized primarily through complementarity with PAFA-E other operations and contribution from UNIDO.

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Beneficiaries and benefits. PARFA directly affects 5,250 family farms, or around 52,500 people, approximately 40 per cent of whom are women and 30 per cent, youth.

The main quantifiable direct benefits included in the economic and financial analysis will be: (i) an increase of agricultural production (millet, sorghum, rice, market garden products) following an increase in rainfed crop yields; (ii) rehabilitation and exploitation of mangroves; (iii) the reduction of post-harvest losses; and (iv) carbon sequestration, which will be partially quantified. The direct benefits related to other project activities could not be quantified, but will increase the internal rate of return (IRR), as calculated in this analysis.

The indirect and/or unquantifiable benefits will be: (i) significant environmental benefits in the use of the natural resources (better water and soil management); and (ii) the reduction of greenhouse gas emissions.

The main institutional benefits will be: (i) the organization of populations to improve their resilience (maintenance and rational use of water catchment facilities, agricultural development, optimal utilization of storage and processing capacity, income-generating activities, or IGAs) and professionalization of the POs; and (ii) strengthening of value chain and trade platforms on resilient management of the natural resources and the fight against the negative impacts of climate change.

The financial analysis is conducted based on rainfed crops (millet, sorghum), lowlands rice, market garden production and farming (honey, fish and oyster production) in the mangroves. The IRR and the net present values (NPVs) show that the models are profitable, with very positive NPVs and IRRs at a minimum of 18.2 per cent. The economic analysis, based on a 15-year period, yielded a 20.6 per cent economic IRR (EIRR) on the Project, and the NPV of discounted net economic cash flow generated by the Project, at an opportunity cost of capital of 10 per cent, would be CFAF2.21 billion, or USD 3.8 million. The sensitivity analysis shows that the EIRR of the Project is particularly sensitive to the delay in access to Project benefits. A two-year delay in benefits would lead to an EIRR of 13.1 per cent.

Sustainability and exit strategy. The sustainability of PARFA interventions will be strengthened by including the following during the Project implementation: (i) the construction of simple works for capture and conservation of surface water or shallow groundwater whose management and maintenance are within the beneficiaries’ capacities; (ii) the promotion of the works on the plots that would reduce soil loss by erosion or salinization; and (iii) the promotion of renewable energies and the development of agricultural products that improve farm incomes and ensure sustainable investment. To ensure better sustainability of the Project results, discussions on the exit strategy should start from the second year of implementation and be subject to the Project proposals at the mid-term evaluation mission.

Social and environmental evaluation. The Project should not have significant adverse environmental and social impacts; rather, it will have many positive impacts in terms of natural resources management and the sustainability of agricultural production systems, improved resilience strategies and capacities of agricultural systems with respect to climate change and improvement in the economy of rural households. Therefore, it is classified in environmental category B. The classification in terms of climate risk is moderate.

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Logical framework

Results hierarchy Indicators Means of verification

Assumptions Description Baseline Year 1 Mid-term

Final Target

Source Frequency Responsible

agent Overall goal: Contribute to the improvement of the economic situation and ecological environment of rural communities.

52,500 beneficiaries improved their economic activities

250,000 (PAFA-E area)

5 000 25,000 52 500

Monitoring and Evaluation System Supervision reports Evaluations

Continuous

Government /PAFA-E

Socio-political stability and security

The prevalence of chronic malnutrition of children under 5 is reduced by at least 5%*

16.5% (national average) TBD

TBD TBD

- 5 % (in the project area)

Development objective: Contribute to improving food security of small-scale farmers as well as their resilience to environmental degradation and climate change.

5,250 households, direct beneficiaries of the Project activities*

25 000 (PAFA-E Area)

600 2 500 5 250 Monitoring and Evaluation System Supervision reports Evaluations

Continuous Government /PAFA-E

Good governance and the political will to undertake reforms and eliminate political, legal and institutional obstacles that

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Final Target


agent Component 1: Outcome 1: The multi-stakeholder platforms include issues on environmental degradation and climate variability in their activities.

2 mechanisms for the

coordination and integration of good practices are promoted – National Strategic Investment Framework for Sustainable Land Management (NSIF-SLM) and National Agro-sylvo-pastoral Development Fund (FNDASP)

1 2 2 2 Monitoring and Evaluation System Supervision reports Evaluations

Continous Government / Institut national de pédologie (INP)

impede the upscaling of resilient and sustainable production Good engagement by the populations

Component 2: Outcome 2: The resilience of the agricultural value chains is improved.

The development of four agricultural value chains integrates a resilient integrated approach3

0 2 4 4

Component 3: Outcome 3: An effective mechanism for monitoring and evaluating environmental impact and food security is operational.

1 monitoring and evaluation system on the environmental impact is operational

0 1 1 1 Monitoring and Evaluation System Supervision Reports Evaluations

Continuous Centre de suivi écologique (CSE, Ecological Monitoring Centre) with INP

The engagement of actors in informing and rendering the system operational The system effectively helps decision making

3 The resilience approach: Value chains are based on an integrated approach when their development adopts the watershed approach, soil and water conservation (SWC), protection of key

ecosystems and the promotion of renewable energy for production,processing and storage.

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Final Target


agent Results Strengthening of the capacity of actors as part of the NSIF-SLM at the national, regional and local levels is effective.

20 awareness workshops involving 2,400 people (disaggregated by sex and age)

28 training sessions for

800 beneficiaries (disaggregated by sex and age)

0 0

6 15

14 26

20 28

Supervision reports Evaluations Progress report (Agreement with PAFA-E) Documents produced) Workshop reports

After each workshop

INP and national actors /UNIDO

Engagement of actors The level of training is good and the pedagogical methods are effective Mobilization of all the actors and political will

An upscaling mechanism is developed and tested.

One resources mobilization strategy for sustainable land management (CSI and FNDASP) At least 400

participants in the works and exchange visits (disaggregated by sex and age)

0 0

1 100

1 200

1 400

Mobilization, management and conservation of waters (surface and groundwater) are improved.

10 000 m3 of water storage capacity yielded annually for 5 months of the year

5 000 m3 4 000 m3 8 000 m3 10 000 m3

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Final Target


agent The recovery, restoration and conservation of degraded lands (salinized, eroded, etc.) are effective.

300 ha (6 valleys) of degraded lands recovered 800 ha of exondated

lands treated with soil and water conservation (SWC) and soil protection and restoration (SPR) 1,000 ha of mangrove

restored 4.5 t/ha/year of stored

CO2-e

1,200 2,400 9,500 2.5 t CO2-e /ha/year

50 200 100 0

200 500 400 0

300 800 1 000 2,5 t CO2-e /ha/year

Supervision reports Evaluations Monitoring and Evaluation System of the Project Supervision reports Evaluations Monitoring and Evaluations System of the Project

Continuous Continuous

PAFA-E/UNIDO Service providers UNIDO/Service providers PFA-E/CSE and national actors

Efficient service providers Participatory interventions and the engagement of beneficiaries Effectively service providers Participatory implementation and the engagement of beneficiaries The engagement of actors in providing information and rendering the system operational

Domestic practices of conservation, processing and increasing the value of low-emission crop and livestock products are promoted.

20 solar pumping systems set up Reduction of 130.42 t

CO2-e (by solar pumping and biomethanation) At least 800

beneficiaries trained on processing equipment and conservation 20 pilot projects for

increasing the value of crop and livestock farming products involving around 100 production units in each region

0 0 0 0

5 15 t CO2-e 100 5

15 70 t CO2-e 400 10

20 130.42 t CO2-e 800 20

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Final Target


agent An environmental monitoring system is set up and operational.

400 users of the system for monitoring and evaluating environmental impact (number of annual visits)

0 50 250 400 The system effectively assists in decision making

A multi-dimensional monitoring system on poverty and food security is set up and operational.

At least three strategic tools are based on the data of the environmental monitoring system

1 1 2 3

1

I. Strategic context and rationale

A. The national context and rural development

1. General economic context

1. Senegal covers 196,722 km2 and has an estimated population of 14.54 million people, with a demographic growth rate of 2.9 per cent in 2014.4 The population is predominantly rural (64%), with a majority of women (52%), and relatively young (71.2% under the age of 19).

2. With a gross domestic product (GDP) per capita of USD 1 0705 in 2014, Senegal is among the poorest countries in the world. Its Human Development Index (HDI) value, estimated at 0.485 in 2013, ranks among countries with low human development (163 out of 187 countries).6 Poverty in Senegal fell only slightly over the last six years, from 48.3 per cent of households living below the poverty line in 2005 to 46.7 per cent in 2011 (see details in Annex 2). Senegal has been facing a low rate of growth over the last decade; during the 2006-2014 period, the growth rate was only 3.4 per cent while that of the whole of Saharan Africa averaged 6 per cent.7 The weak economic performance of the country is due to the importance of the agricultural sector, an unfavourable climate for investment and business (bad governance, lack of infrastructure, lack of human resources) and a loss of competitiveness. The services sector is still the most dynamic sector (+ 5.6%) and the secondary sector, driven by construction, began to recover after the 4.9 per cent fall recorded in 2013.

3. The agricultural sector employs around 55 per cent of the active population (RGPHAE, 2013) and contributes up to 8 per cent of GDP. The growth rate of agricultural production, which was only 2.7 per cent from 1981 to 1995, is slightly less than the demographic growth rate (2.9%) and continues to decrease.

2. Crop and livestock farming and rural development context

Characteristics of the agricultural sector

4. Agriculture, characterized by the predominance of small family farms, has significant potential to contribute significantly to increasing household income and reducing the country's food insecurity. It has the potential to produce more because of the reserve of arable land and/or not yet exploited irrigable land and productivity gains that are still possible (see details in Annex 1).

5. Despite its undeniable strengths, Senegalese agriculture faces several major constraints including: land degradation linked to population growth that increases pressure on the natural resources; stagnating yields related to land degradation and weak technological innovations; and difficult access to credit, quality inputs and farm equipment.

6. Livestock farming, the second economic activity pole of the primary sector (4.3% of GDP in 2011), practised by 350,000 families is characterized by an estimated 15.35 million heads in 2011, predominantly sheep (37.4%), followed by goats (31.9%) and cattle (21.9%). The livestock sector marked by traditional pastoral and agro-pastoral systems is facing two major challenges: the securing of pastoral livestock farming and the emergence of new type of farms that are well adapted to market realities. The concept of the pastoral unit (PU), popularized by projects such as the Agricultural Development Project in Matam (PRODAM), is a response for a rational natural resources management.

4 World Bank. World Development Indicators 2015. 5 Ibid. 6 Human Development Report 2014, UNDP. 7 World Bank. World Development Indicators 2015.

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7. Inappropriate agricultural practices, overexploitation of forests, strong human pressure, climate variability and climate change impacts exert strong pressure on the natural resources, leading to ecosystem and land degradation, with the development of the phenomena of land salinization and acidification.

8. The Sudano-Sahelian type of climate is characterized by the alternation between the dry season, from November to May, and the rainy season from June to October. The analysis of climate data over the last ten years (2005-2014) in the project area shows: (i) a decline in rainfall, which varies from region to region from 0 to 9 mm /year; and (ii) a drop in temperature, which varies from 0.1 to 0.25°C over ten years. The temperature analysis shows a 30-year increase in temperature, from about 0.1 to 0.5°C per decade in the PARFA area.

9. The climate projections indicate a positive gradient for temperature (warming) ranging from 0.8 to 1.1°C (sensitivity of 1.5°C) to 1.5-2.2°C (sensitivity to 3.5°C). Projections show two areas where the increase in temperature in the west will remain lower than that projected in the east. Regarding rainfall, the south will become drier than the north regardless of sensitivity. The effects of climate change will lead to increased salinization (especially in the groundnut basin), flooding of low-lying coastal areas (mangroves) and salinization of the groundwater. This will result in an acceleration of the tanne (salt flat) formation process, thus reducing the availability of arable land.8

Policy context

10. The Emerging Senegal Plan (PES) is the new strategic framework of reference for the development of Senegal, which envisions “a truly emerged Senegal by 2035, with an inclusive society and the rule of law." The main strategic frameworks concerning the rural sector and involving PARFA activities are as follows: (i) the Agrosilvopastoral Orientation Law (LOASP) adopted in 2004; (ii) the National Agricultural Investment Programme (PNIA), adapted for the development of livestock farming; (iii) the Accelerated Programme for Agriculture in Senegal (PRACAS); (iv) the Environment Sector and Sanitation Policy Letter (LPSE); and (v) the National Strategic Investment Framework for Sustainable Land Management (NSIF-SLM), which aims to ensure synergy in the interventions of all actors in order to reverse the land degradation trends and sustainably manage these lands in Senegal. At a larger scale, the Project is also in line with the Sustainable Development Goals (SDGs). The most relevant goals to which it will meet are SDGs 1, 2, 5, 7, 8, 9, 12,13 and 15.

11. PARFA will include a component entirely dedicated to supporting the coordination and harmonization of efforts to promote a coherent multi-stakeholder approach on environmental resilience and sustainability related to food security within the agricultural value chains. It will play an active role in including these issues in sectoral policies and removing obstacles that may arise during the practical implementation of these policies.

Institutional context

12. Ministries. The development strategy, the regulatory framework and the control of activities in the rural and agricultural sector are under the responsibility of different ministries: (i) Ministry of Agriculture and Rural Equipment (MAER); (ii) Ministry of Livestock and Animal Production (MEPA); (iii) Ministry of Environment and Sustainable Development (MEDD); (iv) Ministry of technical education and vocational training; (v) Ministry for Gender and Relations with African and Foreign Women Associations; (vi) the Ministry of the Family, Women's groups and early childhood; (vii) Ministry of Female Entrepreneurship and Microfinance; and (viii) Ministry of Ecovillages, Reservoirs, Artificial Lakes and Aquaculture. Overall, the country's institutions are provided with quality human resources whose operational capabilities are generally satisfactory, although sometimes limited by inadequate financial resources.

13. Decentralization. Decentralization is one of the major reforms of Senegal, which aims to: (i) ensure the economic and social development of each region; (ii) set up an administration close to users; and (iii) create dynamic regions in a unitary state. It must: (i) contribute to improve people's participation in local development planning and in the direct management of the transferred

8 Rapport National sur le Développement Humain au Sénégal (2009) .

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competences; and (ii) promote good governance through the participation of local communities in decision making. With decentralization, the competences of rural communities have been extended to several areas: land management, natural resources, health and education. However, activities related to agriculture and water remain under the responsibility of the central government.

14. Agricultural advice. The Agence nationale de conseil agricole et rural (ANCAR, National Agricultural and Rural Advisory Agency) is responsible for providing rural and agricultural advice throughout the national territory according to an approach based on farmers’ demand and in partnership with the POs and the main rural development actors (NGOs, projects, Regional Rural Development Agency [SRDR, etc.)

15. Rural finance. The National Agricultural Credit Fund of Senegal (CNCAS) remains the main actor in the rural finance sector. The interest subsidy, guarantee and disaster response fund, largely financed from budgetary resources, is managed by CNCAs, which allows it to provide more favourable loan terms than those of the rest of the banking sector and the microfinance institutions (MFIs). Around 700 MFIs, mainly organized in seven major networks, generally finance small trade and income-generating activities (IGAs) in agricultural production.

16. Professional organizations. POs play a fundamental role in agricultural development although their capacities vary. Some professional agricultural or livestock farming organizations (PAOs / PLFOs) are characterized by a dynamic of empowerment and professionalism to better serve their members. Nationally, the platforms9 of the agricultural organizations above all serve as representatives and advocates of the POs. Despite the significant progress made, many local organizations, however, continue to be inefficient in providing technical and economic services to their members. The LOASP provides for the set-up of a public assistance system for the PAOs.

17. The rural private sector and entrepreneurship. The private sector is not very active in the rural areas because of their isolation, the dispersal of opportunities, the lack of suitable credit and the lack of a regular supply of products. It is active mainly in the transportation of agricultural products.

18. The Inter-sectoral Steering Committee of the NSIF-SLM is the decision-making framework of the NSIF-SLM. It is under the authority of the ministry responsible for agriculture and brings together the ministries, institutions, and representatives of civil society and the private sector involved in sustainable land management issues.

B. Rationale

19. The Government of Senegal expressed its interest in participating in the Integrated Approach Pilot for Food Security (IAP-FS) regional programme of the Global Environment Facility (GEF). To this end, the country mobilized the GEF 6 funds (2014-2018) through IFAD, and UNIDO, on behalf of GEF agencies, in order to carry out a new project under this framework.

20. IAP-FS is based on the principles of sustainable value chains development. It will build on the existing initiatives at the national and regional level to overcome obstacles (political, institutional, knowledge-related, etc.) and to catalyse a shift towards more sustainable and resilient approaches. As a result of the new allocation of GEF financial resources for Senegal for the GEF 6 period (2014-2018) and the decision of the Senegalese Government to participate in the IAP-FS, the Government, IFAD and UNIDO initiated the design of this new project under this programme. PARFA focuses on national priorities and strategic axes of IAP-FS; it is aligned with the country programmes of IFAD and UNIDO in Senegal, and uses them as an operational base as well as for mobilizing co-financing. This additional financing will be planned through the IFAD’s and UNIDO’s PAFA-E project and will based on investment.

9 These platforms include the National Rural Consultative and Cooperation Counci (CNCR), the Senegalese Development Movement (MSD), the Union nationale des paysans, pasteurs et pêcheurs (UN3P, National Union of Rural Farmers, Pastoralists and Fishers), the National Rural Consultative and Cooperation Council (CNDR) and the National Union of Farmers, Herders and Fishers of Senegal (SYNAEPS/JAPANDOO).

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21. Complementarity with the projects of IFAD’s portfolio, UNIDO interventions and those of other technical and financial partners in Senegal

The IFAD Country Programme aims to sustainably improve food security and incomes of small-scale farmers and create permanent jobs for the rural population, especially youth and women by improving: (i) access for small-scale farmers and their organizations to inputs and efficient production services, appropriate technologies and markets, as well as access for the rural population to entrepreneurial know-how. The ongoing projects are PAFA, the PAFA-E and Projet d'appui au développement agricole et à l'entrepreneurial rural (PADAER, Support to Agricultural Development and Rural Entrepreneurship Programme) in the Kédougou, Kolda, Matam and Tambacounda Regions.

22. UNIDO supports Senegal as part of the Initiative for Inclusive and Sustainable Industrial Development (ISID) in order to contribute to the implementation of major projects of the PES, in particular, the implementation and operationalization of three competitive and integrated agropoles (Casamance, Saint Louis/Louga and Kaolack). The "Agropoles" programme aims specifically at the integration of operations between and within the value chain from production to market in order to obtain maximum value added while ensuring the sustainability and resilience of production systems. To this end, the promotion and use of skills in the promotion of knowledge and clean technologies play a vital role. In this case, the use of renewable energy sources such as solar and biomass in supporting productive activities (production /development) in the agricultural sector is imperative. PARFA will particularly strengthen the links between and within value chains in order to reinforce "crop-livestock farming" complementarity and to capitalize on the synergies achieved through an integrated approach in managing crop and livestock products and by-products for local production, for example, animal feed and bio-fertilizers in production areas by the target populations.

23. Complementarity with projects from IFAD’s portfolio and those of other technical and financial partners. PARFA activities, which focus on improved resilience of the agricultural sector, sustainable natural resources management and the institutionalization of experience sharing in these fields are complementary to PAFA-E activities and also to those of other projects in IFAD’s portfolio, the Agricultural Development Project in Matam (PRODAM-II) and PADAER.

24. PARFA complements the interventions of other partners involved in some of PARFA’s intervention areas, in particular: (i) the Food Security Support Project in Louga, Matam and Kaffrine (PASA /LouMaKAF) funded by the African Development Bank (AfDB); (ii) the Project for Retention Basins and Boreholes Development (BARVAFOR), funded by Belgium; and (ii) the Project for Capacity Building for the Restoration and the Promotion of Effective Use in the Areas of Soil Degradation (CODEVAL). All of these projects are engaged in the fight against land degradation as well as in sustainable natural resources management and food security (see Annex 5, Appendix 2).

25. PAFA-E – baseline. The overall goal of the PAFA-E Project is to contribute to the sustainable improvement of livelihoods of family farms of the groundnut basin in the Centre and North and in the Western Sylvopastoral Region. The specific objective of the Project is to sustainably improve food security and incomes of small-scale farmers (crop and livestock farmers) and to create sustainable and remunerative employment for rural people, especially youth (of both sexes) and women.

26. The main results, which will be achieved over a period of six years, will be: (i) improved productivity and increased agricultural production; (ii) increased value of production through contractual agreements between farmers’ organizations and market operators (FOs-MOs); and (iii) empowerment and professionalization of PAOs and PLFOs in providing social and economic services to their members. The key results indicators are: (i) increased yields of selected crops; (ii) increased quantities of agricultural products sold through FO-MO contractual agreements; (iii) increased value of the additional production of the targeted small-scale livestock and crop farmers and entrepreneurs; (v) the number of direct beneficiaries of project services; and (iv) improved level of organizational autonomy of the professional crop and farmer organizations.

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27. PAFA-E is organized in three components: (i) Component 1. Development and structuring of the value chains and professionalization of actors; (ii) Agricultural diversification and access to market: and (iii) knowledge management, coordination, and monitoring and evaluation.

28. The total costs over a period of six years, including physical and financial contingencies, amount to USD 50.4 million. IFAD finances USD 34.7 million, or 68.8 per cent of the total cost of the Project.

29. PAFA-E is built on the success and achievements of PAFA projects and of previous projects, e.g. Promotion of Rural Entrepreneurship Project (PROMER), PRODAM II, Agricultural Services and Producer Organizations Project – Phase II (PSAOP II), Village Management and Development Project (PADV) and Village Organization and Management Project (POGV). PAFA-E intensifies the PAFA activities in the current area of its intervention in order to reach a larger number of beneficiaries. It consolidates and completes the PAFA interventions by:

(i) strengthening the institutional and organizational development of the PAOs and PLFOs, especially their umbrella organizations, so that they may provide more efficient services to their members;

(ii) intensifying employment-generating activities and IGAs for youth through: the set-up of large-scale market garden areas for youth (male and female) according to the model of the Société d'intensification de la Production Agricole (SIPA) introduced by PRODAM-2 in the Matam Region; and the set-up of rural micro- and small enterprises (MSE) services provided by youth upstream and downstream of selected crop and livestock value chains by capitalizing on the achievements of PROMER.

PAFA-E will also complement PAFA interventions in conservation, preservation and restoration of natural resources by using the pastoral unit (PU) model widely utilized by different projects, including PRODAM. In addition to the PAFA activities, PAFA-E supports the development of small ruminant farming (particularly sheep), which are activities traditionally carried out by women to enable them to diversify their sources of income and to improve their food security.

30. The Project targets six value chains (millet, sorghum, cowpea, sesame, horticulture and village aviculture) selected on the basis of a number of criteria, including the importance of the value chain for the poor and the most vulnerable (women and youth), the existence of a potential market, possible growth of the value chains in terms of increased productivity/yield and value added, and wealth creation for the poor populations. In addition to these value chains, PAFA-E is also engaged in the small ruminant value chain, considering its importance for income generation for women and the diversification of income sources.

31. PARFA’s mission is based mainly on the importance of the land and natural resources degradation phenomena in the area and, at the same time, the presence of assets on which PARFA can build: (i) the positive results and significant achievements of PAFA and past projects that can be consolidated, replicated and scaled up; (ii) the availability of natural resources and productive potential; (iii) a culture of associative organizations in the socio-productive field; and (iv) possibilities of promoting partnerships between farmers and other actors working in these value chains (private and public). PARFA therefore seeks to add value to PAFA-E activities in environmental matters.

II. Project description

A. Project intervention area and target group

32. The Project will cover the PAFA-E intervention area, i.e. five regions extending over two major agro-ecological regions with high development potential: (i) Kaolack, Fatick, Kaffrine and Diourbel Regions, i.e. the groundnut basin in the Centre and North; and (ii) Louga Region, i.e. the silvo-pastoral region. These five regions extend over 16 departments and 170 rural communities. The project area covers 27 per cent of the national territory and benefits 35 per cent of the population, or around 5.1 million people, whose population structure has a high proportion of youth aged 15-25 and

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a predominance of women (52%); this is even more concentrated in areas such as Louga Region, where there is a high male and youth migration trend.

33. Target group. Within the POs involved in selected value chains, PARFA will mainly target: (i) small and medium-sized family crop and livestock farms; and (ii) rural micro and small enterprises (MSEs). Within these groups, PARFA will ensure the inclusion of the most vulnerable households, youth and women. The POs, MOs and value chain organizations will also benefit and be involved in the implementation of the Project.

34. PARFA will directly benefit 5,250 family farms, or around 52,500 people, including approximately 40 per cent women and 30 per cent youth. Indirectly, it will benefit all households in the five intervention regions of intervention, and even beyond, due to indirect induced impacts, coordination and functional complementarity through the platforms involved in the Project.

B. Developmentobjectiveandimpactindicators35. PARFA’s overall goal is to contribute to improving the economic situation and the ecological environment of rural communities. The development objective of the Project is to improve the food security of small-scale farmers as well as their resilience10 to environmental degradation and climate variability.

36. Expected outcomes. To achieve the development objective, three outcomes corresponding to three technical components of the Project, are expected (see details in the logical framework).

Outcome 1. The multi-stakeholder platforms include issues of environmental degradation and climate variability in their activities.

Outcome 2. The resilience of the agricultural value chains is improved.

Outcome 3. An effective mechanism for monitoring and evaluating environmental impact and food security is operational.

C. Components

37. Since PARFA was integrated into the GEF’s regional programme IAP-FS, its coordination will replicate that of the later and include three components: (i) support to multi-stakeholder platforms; (ii) upscaling of sustainable and resilient good practices; and (iii) monitoring and evaluation of environmental impact and of Project outcomes.

Component 1. Support to multi-stakeholder platforms

38. PARFA will support the strengthening of platforms bringing together all of the key actors at the appropriate levels, with the aim of creating a common space to act in synergy and enhance food security by preserving the environmental heritage. Accordingly, the Project aims to support existing cross-cutting coordination and harmonization efforts, and will rely on existing mechanisms to promote a coherent multi-stakeholder approach to resilience and environmental sustainability of the agricultural value chains. NSIF-SLM provides a unifying set-up of platforms to promote the objectives of Component 1 of PARFA. NSIF-SLM is the preferred choice by the Government, which wishes to: (i) build on what exists and avoid duplication between projects; (ii) optimize the achievements of the existing framework, which it approves; and (iii) ensure continuity and the dynamics that are already in place. This will also rapidly operationalize the collaboration framework. Planned activities to be supported will be part of two sub-components: (i) building the capacity of actors at the national, regional and local levels; and (ii) promoting mechanisms for the coordination and the integration of best practices.

Subcomponent 1.1. Building the capacities of actors at the national, regional and local levels 39. The objective of this Component is to engage a significant number of beneficiaries at all levels with respect to knowledge and good practices towards more sustainable and more resilient

10 Resilience according to FAO is the ability to respond to disasters and crises as well as to prevent, anticipate, absorb, adapt

or recover from shock that have an impact on agriculture, nutrition, food security and food safely in a timely, efficient and sustainable manner.

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agricultural value chains. Accordingly, the Project is investing heavily in awareness-raising of actors and in technical and organizational training to mobilize and involve all actors. It will also strengthen their capacity in order to remove the institutional and technical barriers that prevent the development of policies and strategies that apply a sustainable/resilient approach and that monitor its implementation. The training and awareness needs have been identified with respect to the Project strategy and its three complementary components. Therefore, awareness raising and training will target actions that will be supported by the IAP project (e.g. specific technical training, awareness raising on good practices and their importance to the sustainability of agricultural value chains, as well as information systems and their importance in making informed decisions, etc.).

40. Awareness workshops will be held at the national and regional levels, which will bring together key actors (policy makers, development actors, including civil society and representatives of beneficiaries). The aim is to raise awareness among participants on integrated and sustainable approaches for developing resilient rural agriculture and achieving food security objectives. These workshops provide a collaborate framework to further operationalize the NSIF-SLM and harmonize the approaches adopted by all the sectors (crop and livestock farming, water and forestry, energy, food security, the private sector, etc.). With funds administered by IFAD and coordinated by the Institut national de pédologie (INP, National Soil Science Institute), two national workshops and 16 regional workshops will be held for a total of 1,300 participants. With funds administered by UNIDO, four general awareness regional workshops will be held, organized by the Institut de technologie alimentaire (ITA, Institute of Food Technology) for 1,200 participants.

41. Communication activities will be carried out in close consultation and collaboration between INP and the Commissariat à la sécurité alimentaire (CFS, Commissariat for Food Security) in order to disseminate information on integrated approaches to the development of a resilient, sustainable rural agriculture in Senegal. The activities will focus on: (i) the implementation of a communication plan on the IAP in Senegal; (ii) the production of effective communication tools (newsletters, websites, social media, posters etc.); and (iii) participation in national events to better disseminate the integrated approach (NSIF-SLM principles and IAP).

42. The training of actors at the national, regional and local levels will be guided and will focus on integrated approaches to rural agriculture (incorporating environmental sustainability, resilience, agro-ecology principles, organic production, diversification, agro-biodiversity conservation, water conservation, recycling, integration of livestock farming, etc.). INP will organize training sessions under IFAD, which will include: (i) four national training sessions involving a total of 100 participants; (ii) the training of ten trainers at PARFA intervention areas; and (iii) five regional training sessions for the beneficiaries per year, i.e. 500 people trained. UNIDO will assign ITA with providing four regional training sessions for the POs, i.e. one per year for training a total of 200 people.

Sub-component 1.2. Promotion of mechanisms for coordinating and integrating good practices 43. This sub-component will focus on promoting mechanisms for upscaling good practices within the NSIF-SLM value chains platforms. It will contribute towards removing bottlenecks in the sustainability and resilience of agricultural value chains.

44. The activities under IFAD will focus on: (i) financial aspects by supporting the establishment of an SLM/resilience window at the National Fund for Agro-silvo-pastoral Development (FNDASP) and partnership with the private sector; (ii) legal aspects, particularly the implementation of PUs; and (iii) institutional aspects, through the promotion of integrated approaches to natural resources management.

45. A specific study will be conducted to identify mechanisms that would promote financing for sustainable rural agriculture. INP and FNDASP will jointly develop a fund-raising strategy to promote SLM and integrated approaches for rural agriculture. IFAD has committed a grant of USD 500 000 to FNDASP to provide knowledge and know-how in the form of successful innovations and best practices as public goods in order to strengthen the livelihoods of the rural poor in a systematic and sustainable manner. This grant complements the objectives of the GEF project and builds synergies

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for the dissemination and promotion of good practices. It will provide a technical and financial contribution to scaling-up mechanisms sought by the IAP programme. Thus, INP will collaborate closely with FNDASP to forge synergies for: (i) a large-scale dissemination of successful innovations and good practices; (ii) the organization of workshops to present, discuss and validate best practices; (iii) the drafting of a list of best practices in agricultural and rural development projects in Senegal; and (iv) the creation of a virtual platform on the FNDASP site for sharing knowledge on agricultural and rural development projects. The GEF will complement these efforts with a resources mobilization module.

46. Regarding the legal aspects related to the management of the PUs, a study analysing the current situation will be carried out and possible solutions identified. Two collaboration workshops will be held in Dakar and four at the local level will be organized by INP with different actors in order to yield a set of technical recommendations that will inform decision making, political dialogue on the implementation and management of PUs, and the sustainability of interventions.

47. INP will continue its efforts to implement the NSIF-SLM as a coordination tool by improving it to include resilience and food security. Activities will consist of updating the NSIF-SLM and holding collaboration workshops to develop a coherent vision and a road map for the promotion of integrated approaches. In liaison particularly with the Commissariats à la sécurité alimentaire (CSAs, Food Security Commissariat), the Centre de suivi écologique (CSE, Ecological Monitoring Centre) and the Système d’Information sur les Approches et Technique de Gestion Durable des Terres (SENCAT, Information System on the SLM Approach and Technologies), INP will strengthen and update a comprehensive database on integrated investment approaches and good practices.

48. Under UNIDO's activities, ITA will organize two discussion workshops and exchange visits on themes related to post-harvest activities and the fight against climate change and land degradation. Four regional exchange and dissemination platforms will be set up to ensure the integration of sustainable energy systems through the validated analysis of targeted value chains. On the basis of lessons learned, a guide on the integration of sustainable energy technologies in the value chain will be drafted.

Component 2. Upscaling of sustainable and resilient good practices

49. This component on physical investment and capacity building will be implemented in the PAFA-E intervention area. The selected activities were chosen for their strong complementarity and added value in terms of the environment and food security11 that they would bring to the activities and investments already carried out or planned by PAFA-E and other stakeholders in the area. Accordingly, activities that would be duplicates with respect to interventions underway or planned were excluded. All activities will include three levels of intervention: (i) physical investments and structures; (ii) technical and investment management training; and (iii) assistance to beneficiaries in the form of advisory support and exchange visits. These activities will be carried out in the same target areas in order to ensure integration and complementarity between the various sub-components.

Sub-component 2.1. Sustainable water management

Section 2.1.1 Mobilization of surface water

50. The construction of control and catchment works for runoff water (water-harvesting bunds or water-spreading weirs) in the valleys located in Kaolack, Fatick and Kaffrine Regions, and the creation of pastoral ponds in the silvo-pastoral areas will allow sustainable water resources management to cope with strong climatic hazards and increased productivity of family farms.

51. Valley works (dikes, control weirs, plot development) can present different alternatives, taking into account the physical characteristics and topography of the sites. They will be secured against exceptional floods so that only those that occur every hundred years would risk severely damaging them; each of these works will be equipped with water regulating valves. These works will be built

11 The other selection criteria are: (i) eligibility for GEF financing; and (ii) avoidance of the multiplication of areas of

intervention, which would lead to dispersal, even more so considering the relatively limited financial envelope.

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within the framework of the implementation of the commune’s local development plans (LDPs) through a delegated project management agreement between the commune and PARFA. The construction of the work will be assigned to an independent operator, selected through a national tender on a competitive basis, issued by the commune. Under the Project, 300 ha of new works and 150 ha rehabilitation works will be completed, or 450 ha in total.

52. Rehabilitation/creation of pastoral ponds. To reduce the pressure on land and plant cover in silvo-pastoral areas and to improve access to water, the Project proposes to restore the ponds in a structured layout, thus strengthening cattle dispersion in order to maintain water storage late into the dry season (April-May). The Project will rehabilitate/create five ponds, which will mobilize a total of 10,000 m3 of drinking water for five months for a total of 3,335 tropical bovine units (TBUs).

Section 2.1.2. Combating salinization

53. One of the manifestations of climate change is the acceleration of the process of sea water encroachment of the valley lands, resulting in the reduction of agricultural surface area and water and land salinization. PARFA will construct or rehabilitate anti-salt dikes, equipped with control valves, in the valleys traditionally farmed in the Fatick and Kaffrine Regions. Considering a valley size of 50 ha, PARFA could build three new works and rehabilitate three existing works in a total of six valleys, i.e. for a total of 300 ha protected.

Sub-component 2.2. Sustainable land management

54. According to the NSIF-SLM report, land degradation in Senegal remains one of the major blocks to achieving the development goals, above all, those concerning improving agricultural productivity and reducing the vulnerability of the populations. Land degradation also contributes to social tensions while threatening biodiversity and favouring the release of carbon through deforestation. The Project will support works of: (i) water and soil conservation/soil protection and restoration (WSC/SPR); and (ii) mangrove rehabilitation and exploitation.

Section 2.2.1. Soil protection and restoration/soil and water conservation works

55. The rice valleys in the Kaolack, Kaffrine and Fatick Regions are often subject to the pronounced silting phenomena when plateau lands, which are cultivated with millet, sorghum, maize and cowpea, are subject to degradation by water erosion. Water management is one of the concepts of SLM. PARFA will carry out soil conservation works (stone barriers, bunds, ditches, gully control, etc.) on the upper parts of the watersheds, the areas where the erosion phenomenon starts. It will also promote planting of soil-fixation species, agroforestry techniques and live hedges, etc. The implementation of these activities will be assigned to an experienced NGO. About 800 ha of floodlands will benefit from the SPR/SWC works.

Section 2.2.2. Mangrove rehabilitation and exploitation

56. The mangrove of Saloum Delta covers an area of 58,300 ha. It is a very rich but fragile ecosystem, which serves as a barrier between the sea and inhabited areas, thus reducing the impact of floods and salinization. Mangroves play an important role in the preservation of fish and terrestrial biodiversity and coastal plain lands. PARFA will support communities that wish to rehabilitate a mangrove site through: (i) the preparation of a management plan; (ii) technical and financial support to set up plantations; and (iii) the promotion of the IGAs around these sites (oyster production, fishing, beekeeping, processing of seashells, wood, etc.). These activities will be supervised by a specialized NGO and aim to restore and conserve the mangrove as well as to sustainably use the resources through direct control over a surface area of around 1,000 ha.

57. The Project will set up targeting mechanisms based on those of PAFA-E so that female or youth heads of households will be actively included as beneficiaries of various support to improve sustainable water and land development.

Sub-component 2.3. Sustainable energies and increased value of crop and livestock products

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58. This sub-component will be implemented in the PARFA intervention area with UNIDO’s expertise and management based on an ecological approach to value chain development, allowing for integration between and within value chains. The selected activities were chosen for their high complementarity and additionality in terms of the environment and food security with interventions already undertaken or planned by the PAFA-E and other stakeholders in the area. The sub-component will include two components: (i) the promotion of sustainable energy; and (ii) development of agricultural and livestock products.

Section 2.3.1. Promotion of sustainable energy

59. The Project will support the set-up of solar pumping systems at the market garden sites by financing the installation of 20 solar pumping systems, with a total solar power capacity of 56.32 kilowatts aimed to provide 162 000 m3 of water for irrigating market garden sites (20 ha) supported by PAFA-E.

60. PARFA will also ensure the promotion of biomethanation technology that could be used by rural households and groups mainly for cooking. This technology, already promoted by the National Biogas Programme and the NGO Agronomists and Veterinarians Without Borders (AVSF), is well adapted to the conditions of the project intervention area and to the needs of target groups in terms of heat energy. The use of biogas for pumping water for livestock watering and mechanization of some post-harvest processes should be analysed and validated by the feasibility studies. The Project involves the installation of ten biomethanation systems with a total capacity of 50 kilowatts. Access to renewable energy must be provided to at least 40 percent of women among the beneficiaries.

61. The potential partners for the implementation of this component are the National Agency for Renewable Energy (ANER) and the Office of Rural Boreholes (OFOR) for photovoltaic solar technology, and AVSF for biomethanation. Solar pumping systems and biomethane will contribute to the reduction of 130.42 t CO2-e12 and to the production of 9 and 10 tonnes of bio-fertilizers.

Section 2.3.2. Development of crop and livestock products

62. Given the resources available and in order to avoid a dispersal of efforts, activities will focus on the cereal and livestock farming value chains, particularly the implementation of integrated and sustainable practices for the production, conservation/processing of cereal and livestock products by using renewable energy.

63. The Project will support the implementation of 20 pilot projects (four per region) for a total of around 100 production units. Based on the need for a reduction of post-harvest losses, for appropriate processing/exploitation of the natural resources, and for an integration between value chains so as to capitalize on the complementarity of products and to use by-products and residues from crop farming for livestock farming, and conversely, the equipment will consist of: 20 lots for the processing and storage of livestock products; abundant plant products during wintering for the production of animal feed (silage, fodder, etc.) or bio-fertilizers (compost). In addition, by-products and agricultural residues will be used for the local production of cattle feed. Crop and livestock waste will be used as biomass for the production of energy. Environmentally friendly packaging will be promoted at the supported value chains, and renewable energy will be used. The 20 lots are comprised of: 20 simple silage pits; 20 boxes for compost; 20 simple crushers-mixers; 20 solar dryers; 20 milk conservation and improvement kits; 100 rainwater containers; 20 solar power production platforms; 20 gas production digesters; 20 containers for cooling and milk processing; and four types of packaging promoted in the 20 pilot centres.

64. UNIDO will buy the processing and conservation equipment. The suppliers will be responsible for setting and starting up the equipment, or failing which, ITA will do so and would also provide technical guidance to beneficiaries. The beneficiaries of the pilot projects must include at least 40 per cent women and 30 per cent youth. The beneficiary groups will contribute up to 10 per cent for each pilot project, as applied under the PAFA-E.

12 This is based on the GEF methodology for the calculation of greenhouse gas (GHG) emissions.

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Component 3. Monitoring and evaluation of environment impact and of project results

65. The monitoring and evaluation of activities and of results constitutes a specific component of the Project and thus emphasizes the importance that PARFA and IAP give to the collection and evaluation of results with respect to food security and resilience to cope with environmental degradation and climate variability. The implementation cost for the entire Component 3 will be shared between IFAD and UNIDO.

Sub-component 3.1. Monitoring and evaluation of environmental impact 66. The monitoring and evaluation of the environmental impact aims to provide sound and relevant information on the quality of the measures taken to improve the level of ecosystem resilience to various environmental shocks. The planned activities (nationally and locally) will focus on: (i) implementing an information system; (ii) building capacities of stakeholders of the information system; (iii) determining the baseline status of the indicators related to the level of carbon sequestration, biodiversity, SLM, quality of water, etc.; (iv) regular monitoring these indicators; and (v) integrating environmental monitoring in the information system of the grassroots organizations. The Centre de suivi écologique (CSE, Ecological Monitoring Centre) will be responsible for the monitoring and evaluation of the environmental impact.

Sub-component 3.2. Monitoring and evaluation of activities and of Project results 67. The monitoring and evaluation system of PARFA, which relies on PAFA-E’s monitoring and evaluation system, will aim to provide information on the performance of the Project implementation by comparing current activities with those planned. The data that will be collected will facilitate project management and the preparation of progress reports, and will enrich the lessons learned and the conclusions for a comparison between the "with project" and "without project" situations. A single logical framework and Monitoring and Evaluation Manual of the Project will be developed. The Monitoring and Evaluation Unit of PAFA-E will be responsible for the implementation of the monitoring and evaluation. The Unit will be supported by a monitoring and evaluation assistant responsible for ensuring the organization of data collection, the setting of dashboards (level of implementation of activities) and Project activity reports.

Sub-component 3.3. Knowledge management

68. PARFA, in synergy with the knowledge management activities of PAFA-E, will strengthen the collection and dissemination of information that is useful to local, regional and national value chain actors, and will make best use of activities and methods implemented by IFAD and UNIDO projects and by other projects that carry out activities similar to those of PARFA. The different communication channels used are: training manuals, good practice guides, data sheets, posters, videos, radio programmes and the dissemination and regular updating of information on the IFAD website. Implementation of the activities of the Knowledgement management sub-component will be assigned under a service contract to the NGO Innovation, environnement, développement Afrique (IED Afrique). The Project will develop a knowledge management strategy with the provider. The results of this component will be actively used to better inform policy dialogue (Component 1) and to strengthen the enabling environment of sustainability and resilience through a learning process. This same process will be used for upscaling good practices. To this end, sub-component 1.2 will be based on the results of these activities and on PARFA’s knowledge management at all levels. The agreement between INP and PARFA should include and clarify the elements and mechanisms that would ensure this exchange between the activities of 1.2 and 3.3.

D. Overall environmental benefits

69. The Project targets vulnerable and overexploited/damaged ecosystems of regional and global significance such as mangroves. It aims at rehabilitating land and fighting against salinization through the promotion of sustainable water and soil management the rehabilitation and conservation of mangroves. It will reduce the production of greenhouse gases by promoting the use of renewable energy for pumping (solar pumping) and introducing biogas as an alternative for clean energy in rural areas (reducing emissions and pressure on the plant cover). Thus, the Project will produce the following global environmental impacts:

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carbon storage and the reduction of emissions;

rehabilitation of plant cover;

rehabilitation of mangroves (carbon storage and conservation of biodiversity) ;

water resources conservation;

the fight against the damaging impacts of climate change (drought and rise of water levels, etc.) and improved resilience of the ecosystems.

70. Formulation estimates indicate that the Project will contribute to a potential reduction of 130.42 t CO2-e (solar pumping and biomethanation) and a storage of 4.5 t/ha/year of CO2-e (specifically in the 1,000 ha of mangrove forest that will be rehabilitated).

E. Synergies with the IAP-Food Security regional project

71. This Project will establish strong ties with the regional, cross-cutting project, IAP-Food Security. These ties will mainly focus on three areas:

Exchange visits and training. Coordination will be established with the regional project. Project actors and key institutions in Senegal will benefit from training opportunities and sharing of data/information on resilience and food security.

Exchanges and knowledge management. Accordingly, the Project will share data, case studies and lessons learned with the regional project to serve other projects. At the same time, it will benefit from the results that will be provided by other participants in the cross-cutting project. This exchange will allow to learn and test innovations that will strengthen the implementation of the theory of change of this GEF financing in Senegal. Monitoring and evaluation. The Project will provide the necessary data to ensure that these results and outcomes are shared and communicated.

72. Moreover, the Project will establish operational links with the MSP/ NDVI, which will be developed in Senegal under this IAP-Food Security programme. The exchange interface will be through CSE in Dakar, which will control the monitoring work (GIS and remote sensing) for this project. The agreement that is to be established between PARFA and CSE will consider the elements that will be developed as part of these MSPs and will seek potential complementarities to avoid duplication. The CSE will identify synergies and complementarities with respect to the agreement.

73. During the start of PARFA, a hybrid work plan will be developed with the crosscutting regional project to integrate activities there where synergies will be possible. This work programme will be integrated in the AWPB of the Project and included in the agreements planned by PARFA.

F. Lessons learned and alignment with IFAD policies

3. Lessons drawn from other projects

74. There will be complementarity with IFAD’s and UNIDO’s portfolio projects in Senegal. The main lessons learned from previous projects and that will be taken into account in the design of this new project are as follows:

The process of professionalization and empowerment of POs is a sustainability factor. The objective is to have empowered POs, capable of networking with MOs, and to obtain credit from financial institutions.

The value chain approach is an option suitable for forging a strong linkage of family farms to the market and for creating job opportunities for rural youth through entrepreneurship services within promising value chains.

Due to the capitalization and dissemination of knowledge (knowledge management approach), precious time will be saved for the upscaling of best practices and the achievement of a critical mass of the target group.

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The pastoral units (UPs) allow for rational natural resources management and better management of conflicts between crop and livestock farmers, and serves as a basis for the development of livestock farming.

The application of the principles of inclusion in the targeting of project beneficiaries (inclusion of women, youth, poor households and disabled persons) contributes to the reduction of rural poverty.

IFAD’s Country Programme Review Workshop (Results-based Country Strategic Opportunities Programme, or COSOP), held in November 2014, emphasized the need to: (i) systematically internalize climate change, adaptation and resilience in the projects; (ii) further highlight the information on climate change; and (iii) take into account biodiversity and the regeneration of natural resources.

The mid-term review of the GEF component of PAFA, conducted in May 2015, and the interviews with the PAFA-E team emphasized the need to better define the number of activities under the GEF project as well as the number of implementing partners in order to reduce red tape and delays in the implementation of activities that negatively affect the results and the impact of the Project.

75. PARFA’s design took into consideration: lessons learned, particularly with respect to the value chain approach and capacity building of POs in order to ensure the sustainability of investments; and the concentration of activities on the intervention axes that have great potential for upscaling and for impacting on the fight against environmental degradation and the strengthening of food security.

76. Compliance with IFAD policies. The project intervention strategy is consistent with IFAD policies, especially on aspects related to: (i) gender; (ii) access to land and security of tenure; (iii) climate change adaptation; (iv) private sector development; (v) targeting; and (vi) the development of rural enterprises. It is aligned with the two strategic axes of COSOP 2011-2015 and aims to strengthen environmental aspects and food security interventions of PAFA-E, and to contribute towards strengthening the IFAD country programme approach.

III. Project implementation

A. Approach

77. Project approach. The implementation strategy will not differ from the strategy used by PAFA-E, and will mainly be based on: (i) a targeting of activities and beneficiaries, taking into account the interventions of PAFA-E and other projects; (ii) a coordination of activities based on practical, results-based approaches; and (iii) an alignment of the policies, initiatives and support measures for the sustainable conservation of environment resources and sustainable land management in the selected value chains. Concretely, this consists in the following:

Targeting – concentrating activities in the areas and on the value chains supported by PAFA-E following the guideline of seeking environmental additionality and food security. The activities will be coordinated and harmonized with PAFA-E, UNIDO and other stakeholders, avoiding duplication, but promoting complementarity, clarifying responsibilities and avoiding negative interference. This will involve: (i) promoting a discussion in existing multi-stakeholder platforms at all levels on the resilience of the actors facing natural resources degradation and climate variability; and (ii) promoting low-emission developments/physical investments. The Project will adopt the PAFA-E’s strategy "Gender and inclusion of vulnerable segments of society" which allows women and youth heads of households to be included in the Project support. Cooordination – adopting an approach focused on the dissemination, replication and strengthening of relevant experiences developed in the project intervention area or in similar contexts, particularly in the following areas: (i) methods of water and soil management and conservation; (ii) methods of processing, conserving and developing low-emission crop and livestock products; and (iii) the monitoring and evaluation of environmental impacts and outcomes of the Project. To render these actions operational, the Project will sign protocols or agreements with the implementing partners and/or service providers for technical monitoring and control activities, capacity building, and impact monitoring and evaluation, and will hire service providers for the physical developments and investments.

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Convergence – with the policies and initiatives on sustainable environmental resources management and sustainable land management, the Project will be strongly anchored in development strategies implemented by the Government and partners to achieve the objectives in the PES, based on the Sustainable Development Goals (SDGs), which bring together a number of different initiatives focused on strengthening growth and green governance. Moreover, to empower local stakeholders with regard to climate variability, the Project will support the inclusion of climate change hazards in local planning tools. From a sectoral perspective, the Project objectives are part of the strategic axes of the agrosilvo-pastoral law and the energy environmental and water resources policies.

78. Targeted chains. Taking into account the available measures and in order to avoid a dispersal effect, the activities linked to the development of agricultural products will be focused on the crop and livestock value chains.

79. Phasing. Since PARFA is executed under PAFA-E, the duration of its intervention will be in line with that of PAFA-E and will last four years in order to end at the same time as PAFA-E.

B. Organizational framework

80. Supervision and management. MAER will be responsible for the supervision of the Project. The Steering Committee will be the same as that of PAFA-E but will also include GEF’s Operational Focal Point, the ministry responsible for energy, the ministry responsible for industry and UNIDO. The Presidency of the Steering Committee will be provided by MAER. It will meet twice a year, in June and October, to validate the AWPBs and procurement plans, and to evaluate the progress of activities. Any changes to the work plan will be carried out according to the project document approved by the GEF and GEF reference documents C.39.Inf.04. As with PAFA-E, the Steering Committee is assisted by the Technical Committee, whose role is to carry out an in-depth analysis of the technical files by the Steering Committee submitted for consideration.

81. Project management and coordination. Activities funded by the GEF-IFAD will be managed by the Coordinating Unit (PCU) of PAFA-E based in Kaolack, which has the autonomy of administrative and financial management according to the procedures in force in the IFAD projects. The PCU will be strengthened in personnel and equipment to properly manage the implementation of this additional GEF funding. The additional staff will include: (i) a Rural and Environmental Engineering Specialist; (ii) a monitoring and evaluation assistant; (iii) an accounting assistant; and (iv) a driver. PARFA will also pay compensation for overtime to the Coordinator and the Administrative and Financial Manager (AFM) of PAFA-E. UNIDO will hire expert(s) to provide technical support and monitoring of activities related to the fields of processing and energy. He or she will be based in the Coordination Unit of PAFA-E allowing for close coordination of all activities funded by UNIDO.

82. Implementation of activities. For the implementation of field activities, the PCU and UNIDO will establish collaboration/services agreements with implementing partners and providers. Specialized agencies – CSA, CSE, IED Afrique, INP, ITA, etc. – as well as NGOs, umbrella POs and other stakeholders with proven expertise and experience will be responsible for the implementation of activities on the institutional, organizational and technical development of the POs (structuring, capacity building, support and leadership) and support for productive investment.

83. The operations financed from the funds managed by IFAD will be implemented by the PCU of PAFA-E and according to the administrative and financial procedures in force in projects financed by IFAD in Senegal, in particular those of PAFA-E.

84. UNIDO-supervised activities managed centrally according to the administrative and financial procedures in force in UNIDO and implemented on the field through national institutions under sub-contracts directly managed by UNIDO from its headquarters in Vienna. The head of UNIDO, placed at the PCU of PAFA-E, will provide advisory support and monitoring of activities. For the choice and modalities of development of the investment, UNIDO will consult with PAFA-E and follow PAFA-E’s approach in terms of working arrangements with the beneficiaries (see Annex 4, Section 135 ) to avoid duplication or inconsistencies in the implementation.

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C. Planning, monitoring and evaluation, apprenticeships and knowledge management

85. Planning of activities. PARFA will have a single AWPB concerning all the annually planned activities, which will be managed by IFAD or UNIDO. The AWPB will be validated by the Steering Committee, and a no-objection is required from both IFAD and UNIDO. The overall implementation of the AWPB is under the responsibility of the PAFA-E Coordinator.

86. Monitoring and evaluation. PARFA’s planning and monitoring and evaluation system will rely on PAFA-E’s monitoring and evaluation system, and will therefore follow the methodology adopted by the latter. A monitoring and evaluation manual of the Project, based on that of PAFA-E, will be drafted at the start-up of the Project. It will be shared with all the actors and will describe the system, its organization and the implementation modalities of each function (procedures), the actors and their responsibilities in the implementation, and the different collection and dissemination tools that will be used.

87. The monitoring and evaluation system will rely on the indicators and target values in PARFA’s logical framework. It will include three levels of results: (i) the first level, which corresponds to the Project activities and outputs; (ii) the second level, which relates to the Project achievements; and (iii) the third level, which measures the overall impact of the intervention with respect to the baseline situation. The monitoring and evaluation system will distinguish the three levels of indicators selected by IFAD; the monitoring and evaluation and impact indicators of the system will be disaggregated by sex and age.

88. PARFA will encourage participatory monitoring and evaluation by the beneficiaries themselves. The POs and the management committees of the works will be supported in order to maintain, at their level, simple and reliable information, to encourage a true ownership of the achievements by the beneficiaries and the rural communities. The monitoring and evaluation will be carried out as follows:

Internal monitoring: The Monitoring and Evaluation Officer of the Project will coordinate the collection and analysis of the basic data and will consolidate them in the trimestrial, semestrial and annual activities of the Project. A simple and reliable system for collecting information will be set up for actors and service providers. The Officer will regularly submit the data to MAER to provide input for the Project for the Support of Monitoring and Evaluation of IFAD’s Country Programme (PASYME), to the Ministry of Environment and Sustainable Development (MEDD) and to MEPA.

Participatory evaluation workshops with the grassroots groups and PAOs/PLFOs will be

organized by the Project and help together with the strategic service providers and partners.

89. Knowledge management. In order to contribute to the sharing of experiences and especially the capitalization of knowledge, PARFA, with respect to PAFA-E’s knowledge management approaches and activities, will strengthen the collection and dissemination of information that is useful to the value chain actors at the local, regional and national levels. This will be achieved by: (i) organizing regular participatory evaluation workshops for PAOs/ PLFOs; (ii) conducting ad hoc thematic studies; and (iii) producing and distributing different information tools. These tasks will be assigned to a specialized agency, IED Afrique. The Project will develop an operational strategy for knowledge management with the support of the provider. Moreover, the capitalization and dissemination of knowledge on integrated approaches for the development of a resilient, sustainable rural agriculture will be a separate activity in Component 1 of the Project, to be conducted by INP in collaboration with CSA. All of the activities concerning national harmonization, coordination and dissemination of environmental good practices carried out in Component 1 must be geared towards informing dialogue and better response to these issues in the national sub-sectoral and sectoral policies and strategies.

90. The mid-term and final evaluations of the Project will be undertaken on the basis of evaluation parameters and tools of GEF projects according to the Terms of Reference established

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jointly by UNIDO and IFAD. The evaluation team will be set up using national and international independent expertise.

D. Financial management, procurement and governance

91. Financial management procedures. Monitoring of commitments and the financial performance of PARFA will rely on the use of TOMPRO accounting and financial management software for producing financial and management statements. The management and accounting of PAFA-E and PARFA funds will be carried out at the same time but separately. The administrative, financial and accounting procedures of PARFA be harmonized with those of PAFA-E; however, PARFA will have its own administrative financial and accounting procedural manual. The financial management of GEF funds will be divided according to the financial breakdown approved by the GEF. The PAFA-E project will only be responsible for managing the resources allocated to IFAD, for which a GEF Special Account will be opened. The allocation of UNIDO funds will be managed centrally, mainly through sub-contracts in accordance with UNIDO’s administrative and financial regulations in force. Monitoring of commitments will be performed using internal software.

92. The disbursements for major civil engineering works and the purchase of vehicles and equipment may be paid directly by the GEF / IFAD. As in the PAFA-E project, disbursement of funds from the sub-account will be made on the basis of financial monitoring reports. The original documents will be kept at the PCU and branches, and made available to auditors and supervision missions.

93. Flow of funds. To facilitate IFAD loan disbursements, the Ministry of Finance in the name of the Project will open a designated account (DA) in a commercial bank in Dakar, acceptable to IFAD. The DA will be administered by the Ministry in charge of Finance (Investment Department). A Project account, which will receive funds from the DA, will be opened in a commercial bank acceptable to IFAD, in Kaolack, by the Ministry in charge of Finance. A sub-account, which will receive funds from the project account for expenditures relating to the operation of the branches, will be opened at each branch in a commercial bank acceptable to IFAD. The sub-accounts will be administered in line with the procedures specified in the administrative, accounting and financial procedures manual (see flow chart in Annex 7). The administration of all of the project accounts will require the dual signature of the Coordinator and of the AFM at the PCU, and of the Head and of the accounting assistant of the branch. Specimens signatures of persons authorized to administer the DA and the Project account will be transmitted to IFAD right at the start of the Project.

94. Budgeting. The annual AWPB will be prepared by the PCU in collaboration with its implementing partners, validated by the Coordinator and approved by the Steering Committee, IFAD and UNIDO. The cost of the approved AWPB will be entered in the accounting and financial management software to monitor its implementation. The quarterly financial monitoring report submitted to IFAD and the Government will include the budget monitoring reports.

95. Disbursement. As soon as the disbursement conditions stipulated in the Financing Agreement are met, and upon request of the borrower, the initial deposit will be made by IFAD to the DA, in an amount sufficient to cover the average projected expenditures under the financing for a period of approximately six months. The DA will be replenished by submitting a withdrawal application (WA) to IFAD prepared by the PCU and signed by an authorized representative of the borrower (dual signature principle). WAs will be processed through TOMPRO financial and accounting management software, based on IFAD forms. The Government will take all appropriate measures, including annual consolidated investment budget provisions, treasury cheques and exemption from the Project’s import duties to cover taxes and duties pertaining to project expenditures.

Accounting and internal control. In addition to supervising the production of accounting and financial statements, the AFM will directly supervise the management at the branches and ensure the proper conduct of management operations and the rational use of the Project’s assets. The AFM will countersign checks signed with the PAFA-E Coordinator, after verifying the legality of expenditures and in compliance with administrative, accounting and financial procedures. He or she will report monthly on the statement of expenditures and the use of resources to the Project Coordinator and will

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prepare financial records for the preparation of supervision missions and Steering Committee meetings. The IFAD office in Dakar will jointly supervise financial management on a quarterly basis.

96. Reports and financial monitoring. The annual financial statements will be prepared by the PCU and submitted to IFAD no later than March 31 of each year. Financial reports (interim and unaudited) produced by the software will be prepared quarterly by the PCU and will include the sources and uses of funds by classification of Project expenditure. They will also compare budgeted and actual spending (commitments and disbursements) at the time of the drafting of the reports for the following semester. The PCU will submit copies of the financial reports to MAER and IFAD no later than 45 days after the end of the quarter.

97. External audit. The financial statements and management of the Project will be verified annually, at the same time as those of PAFA-E, through an independent and qualified accounting and auditing firm hired by PAFA-E. The costs will be shared with PAFA-E in proportion to the amounts disbursed. The audit reports will be submitted to IFAD no later than six months following the closure of the fiscal year. The failure to submit the annual audit report within this period will constitute a cause of suspension of disbursements. The audit operations will be extended to the management of the Project’s implementing agencies.

98. Procurement. The order and delivery of works, supplies and consultancy services must comply with the procurement code in force in Senegal and the provisions of the administrative and financial procedures manual of the Project. At the start of the Project, the detailed 18-month Procurement Plan will be submitted to IFAD for its no-objection. It will indicate, for each market, the method and the proposed thresholds. This Plan will be one of the prior conditions for disbursement of the financing. Each year, an annual procurement will be drawn up and incorporated into the AWPB. Prior to its implementation, it must be approval by the Steering Committee and receive IFAD’s no-objection.

99. Governance. According to the Corruption Perceptions Index established by Transparency International, Senegal ranks 69th out of 175 countries assessed in 2014. With a score of 43 out of 100, Senegal is slightly below average among the most transparent countries. PARFA will promote good governance in terms of its implementation, including: (i) the representation of value chain actors in the Project’s Steering Committee; (ii) the establishment of selection procedures based on transparency and competitive bidding; (iii) participation of beneficiaries in the opening and awarding of tenders at the regional level; and (iv) provision of training for management committees of the associations and POs on the rules and tools of good governance. Finally, participatory feedback and evaluation workshops will be integrated into the planning and monitoring and evaluation system so as to ensure transparency and regular exchange with the beneficiaries on the quality and effectiveness of the Project interventions.

E. Supervision

100. The Project will be directly and jointly supervised by IFAD (Dakar office) and UNIDO, with the participation of senior officers of the Ministry of Economy, Finance and Planning (MEFP), MAER, MEPL, MEPFs (at least one supervision mission per year). For efficiency, PARFA supervisions will be jointly carried out with these of PAFA-E. Supervision missions will focus on the qualitative and quantitative monitoring of implementation, the achievement of outcomes, outputs and impacts, and the effectiveness of institutional and technical advances that will be consolidated and scaled up. Monitoring missions will be carried out regularly, according to needs expressed by the Dakar office.

F. Risk identification and mitigation

101. A certain number of risks will be taken into consideration in the implementation of the Project. They have been identified and are presented with the risk mitigation measures in Table 1.

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Table 1: Summary of risks and migitation measures

Risk Mitigation measures Qualific-ation of migitated risk

Skills and availability of implementing partners could be proven insufficient

Using and expanding the list of PAFA-E service providers and drafting a short list of service providers in partnership with other projects on the basis of confirmed experience; as regards the works, this consists in creating lots large enough to attract the enterprises with proven experience; support to training/capacity building of some key providers.

Average

Climate risks The adaptation measures must aim at, in the short and medium term, adopt ng crops or varieties that are more resistant or better adapted to these changes.

Average

Exclusion of women or the weakening of their control over lands after their development

The Project will ensure that the RCs, in agreement with the professional organizations (POs), will allocate some of the developed lands to the women’s’ groups

Limited

investment captured by the elites

The Programme will ensure that the information will reach all of the categories of actors, and a smooth flow of information, and its transparency

Limited

Land: – Use conflict

between crop and livestock farmers (caused by access to water and crop damage)

– The RCs allocate the lands

Clarification of land status and granting the right of use by the RCs before the development. Under PARFA, the grassroots professional agricultural organizations (PAOs) and professional livestock farming organizations (PLFOs) will be the ones to request the allocation of lands; their umbrella organizations could be responsible, with respect to the Project, to carry out the information and awareness campaigns to encourage these grassroots POs to follow the necessary procedures so that the rural councils may allocate them the lands to be developed. The deliberations by the RCs on the granting of land use rights sets off the process of allocating and developing the lands.

Limited

Insufficiency of maintenance culture and capacity

The issue of maintaining and renewing equipment is taken into account upstream of the construction of the infrastructures through the creation, from the start, of an equipment maintenance and renewal fund, the set-up of management committees and ASUFOR for the PUs, and the building of the capacities of the management of these associations.

Limited

IV. Project costs, financing, benefits and sustainability

A. Project costs

102. Baseline costs of Project amount to USD 9.3 million (CFAF 5.39 billion), plus 12 per cent contingency, for a total cost estimated at USD 10.43 million, or CFAF 5.54 billion. The costs per component of the baseline costs are: (i) 8.4 per cent for Component 1 "Support for multi-stakeholder platforms"; (ii) 79.7 per cent for Component 2, "Scaling up of, sustainable and resilient good practices " and (iii) 8.6 per cent for Component 3, "Monitoring and evaluation of the environmental impact and of Project activities". Project management costs amount to 4.7 per cent of the baseline costs. PARFA will be financed by: (i) a GEF grant amounting to USD 7.219 million, of which USD 3.58 million will be managed by IFAD (34.3%) and USD 3.64 million by UNIDO (34.9%); (ii) a Government contribution of USD 1.65 million (15.8%), which corresponds to the duties and taxes of goods and services purchased by the Project; (iii) a beneficiary contribution estimated at USD 366,517 (3.5%) and (iv) a PAFA-E contribution of USD 1.19 million (11,5%). Co-financing is estimated at USD 28.54 million and

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will be mobilized primarily through complementarity with PAFA-E other operations and contribution from UNIDO.

Table 2. Summary of project costs by component (in CFAF ‘000 and USD ’000)

1. Component1"Strengtheningofmulti‐partyplatforms"

2. Component2,"Implementationofintegratedapproachesatalargescale"

3. Component3,"Monitoringandevaluationofenvironmentalimpactandofprojectresults

4. Projectmanagement

B. Project financing

103. PARFA will be financed by:

a GEF grant amounting to USD 7.22 million, of which USD 3.58 million will be managed by IFAD, (34.3% of total cost) and USD 3.64 million by UNIDO (34.9% of total costs) :

a government contribution of USD 1.65 million (15.8% of total costs), which corresponds to the taxes and charges levied on the goods and services acquired by the Project;

a contribution of beneficiaries estimated at USD 366,517 (3.5% of total costs), which follows the PAFA-E model for these types of co-financing;

cofinancing is estimated at USD 28.54 million and will mainly be mobilized through complementarity with the PAFA-E operations, as indicated in Table 4.

104. Table 3 shows the distribution of total financing of the components per donor.

Table 3. Summary of project costs per donor (in USD ‘000)

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1. Component1"Strengtheningofmulti‐partyplatforms"

2. Component2,"Implementationofintegratedapproachesatalargescale"

3. Component3,"Monitoringandevaluationofenvironmentalimpactandofprojectresults

4. Projectmanagement

105. Co-financing is estimated at USD 28.54 million and will be mainly mobilized through complementarity with PAFA-E operations. The GEF co-financing will be confirmed upon receipt of a letter of co-financing (contribution) that the Government will have to send at the final design stage when the overall estimate of the required matching funds for co-financing of PARFA will be established. Co-financing by component and sub-component is shown in Table 4.

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Table 4: Project co-financing

C. Summary of benefits and an economic analysis

106. PARFA’s added value – PARFA will complete the activities and bring added value to the PAFA-E interventions in the fields shown in Table 5. Also, Figure 1 shows the theory of change resulting from this GEF-IAP financing.

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Table 5: PARFA’s added value to PAFA-E activities

PAFA-E activities PARFA’s added value

Strengthening of management capacities of actors in the agricultural value chains

Greater consideration of the environmental dimension in the different segments of the agricultural value chains.

Awareness raising and training of actors on environmental issues.

Improvement of multisectoral coordination for the sustainable management of the agricultural value chains.

The set-up of an environmental monitoring system for better decision making on the sustainability of the value chains, their resilience and food security.

Removal of economic constraints in the agricultural value chains

Removal of environmental constraints and taking into consideration the risks linked to environmental degradation.

Fund mobilization for the environmental sustainability of the agricultural value chains.

Support to agricultural production in the selected agricultural value chains

Improvement of the resilience of production systems faced with soil and environmental degradation and climate variability.

Land protection against salinization.

Promotion of a watershed approach (integrated approach for space management).

Support for the processing of agricultural products

Development of integrated inter- and intra-value chain approaches, including the use of renewable energy and the reduction of greenhouse gas emissions.

Support for the marketing of agricultural products Support to packaging and storage appropriate to climatic conditions.

Support to improving the packaging of products, particularly, biodegradable ones, using local raw material (improving environmental sustainability and food security).

Increased value-added by the farmers in the supported agricultural value chains

Strengthening of the sustainability of value-added by farmers in the supported agricultural value chains.

Improved value, diversification and conservation of by-products in the agricultural value chains.

Promotion of PUs Clarification of the legal status of the PUs (coordination and promotion of a framework that ensures sustainability).

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Figure 1: Food Security – Theory of Change

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107. Direct quantifiable benefits. The Project will directly benefit 5,250 households, i.e. 52 500 people in all of the targeted regions. The economic and financial benefits mainly derive from Component 2, "Implementation of integrated approaches on a large scale", which integrates the recovery and sustainable management of lowlands and watersheds; improved access and management of surface and groundwater; rehabilitation and exploitation of mangroves; as well as the promotion of renewable energy, and the set-up of mechanisms to improve the value of production. Additional benefits identified in the economic analysis are those that are easily quantifiable, which result from: (i) the increase in agricultural production (millet, sorghum, rice, market garden products) following the increase of rainfed crop yields due to the use of selected seeds and associated inputs (fertilizers , phytosanitary products); (ii) rehabilitation and exploitation of mangroves; (iii) the reduction of post-harvest losses; and (iv) capacity building of the POs. The direct benefits related to some of the project activities could not be quantified, but will increase the level of the IRR as calculated in the context of this analysis. These are the economic benefits related to support to the livestock farmers’ activities (in the ponds), the processing of agricultural products and the reduction of energy expenditures as a result of technological changes and the implementation of durable and resilient mechanisms.

108. Indirect and /or unquantifiable benefits. The Project has an approach that is a strongly linked to the promotion of sustainable land and water management practices and the use of renewable energies, which will generate positive environmental externalities for society (co-benefits of mitigating consequences due to climate change by reducing emissions and increasing carbon sequestration that will be partially quantified), beyond the "personal" benefits related to adaptation and resilience of beneficiaries to climate change.

109. The main institutional benefits will be: (i) the organization of the populations into associations and POs around some key activities to improve their resilience (maintenance and reasonable use of water catchment facilities, agricultural development, optimal use of storage and processing capacity, IGAs) and the professionalization of the POs; and (ii) strengthening of the value chain and trade platform regarding resilient natural resources management and the fight against the negative impacts of climate change.

110. Financial analysis. The financial analysis aims to estimate the profitability for farmers and of farms of some business models over the medium and long term. The financial profitability of agricultural activities was assessed on the basis of the budgets of the rainfed crops (millet, sorghum), of lowland rice, market garden production, farming (honey, fish and oyster farming ) in the mangroves (see details in Annex 10).

Table 6: Fees, gross product and gross margin per crop (CFAF/ha)

Category Rainfed crops (CFAF/ha) Unit Millet Sorghum Rice/Market gardening crops Lowland rice Without project Total fees Gross product Gross margin With project Total fees Gross product Gross margin Value added with Project Additional gross margin % of increase of gross margin

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111. The IRRs and net present values (NPVs) were calculated by including the investment, and they show that the models are profitable, with very positive NPVs and IRRs at a minimum of 18.2 per cent. The model developed of the rice system to which a market gardening cycle is added seems to be the most profitable financially.

112. Economic analysis. The economic analysis aims to estimate the overall benefits for the Senegalese economy. The analysis was performed based on the calculation of the additional cash flow taking into considering the "without project" situation and the "with project" situation over a period of 15 years. The flow of goods and services produced and consumed by the Project were converted into economic costs, as well as that for the operating accounts. The expected additional production of the Project is presented in Table 7. The overall EIRR of PARFA is 20.6 per cent and the NPV of the discounted net cash flow generated by the project at an opportunity cost of capital of 10 per cent would be CFAF 2.21 billion, or USD 3.8 million.

Table 7: Additional production per product with the Project (t)

Additional production with the Project (t) Crop Without project Year 1 Year 2… Millet Sorghum Lowland rice Rice 2 Tomato Fish Oysters Powder Honey

Mil Sorgho Riz/ Maraichage Riz Bas Fonds

Sans projetCharges totales FCFA/ha 25,166 27,167 46,800 28,800 Produit brut FCFA/ha 127,075 143,283 152,700 127,500 Marge brute FCFA/ha 101,909 116,116 105,900 98,700 Avec projetCharges totales FCFA/ha 93,840 169,575 437,360 174,325 Produit brut FCFA/ha 246,300 330,375 1,123,480 534,250 Marge brute FCFA/ha 152,460 160,800 686,120 359,925 Plus value avec ProjetMarge brute additionnelle FCFA/ha 50,551 44,684 580,220 261,225 % d'augmentation de la marge brute % 49.60 38.5 547.9 264.7

Rubrique UnitéCulture pluviales (FCFA/ha)

Systeme de production (FCFA/ ha)

Mangrove 1 Mangrove 2

Sans projetCharges totales FCFA/ha 26,000 24,000 Produit brut FCFA/ha 81,500 41,500 Marge brute FCFA/ha 55,500 17,500 Avec projetCharges totales FCFA/ha 61,200 53,200 Produit brut FCFA/ha 196,750 96,750 Marge brute FCFA/ha 135,550 43,550 Plus value avec ProjetMarge brute additionnelle FCFA/ha 80,050 26,050 % d'augmentation de la marge brute % 144.2 148.9

Rubrique Unité

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113. The sensitivity analysis shows that the EIRR of the Project is particularly sensitive to the delay in access to Project benefits. A two-year delay in benefits would result in an EIRR of 13.1 per cent, whereas combined with a 30 per cent drop in benefits, it would result in an EIRR of 9 per cent. Furthermore, an increase in costs of 20 per cent would result in an EIRR of 16.4 per cent, whereas combined with a 20 per cent drop in benefits, it would result in an EIRR of 11.6 per cent.

Table 8: Summary of the Sensitivity Analysis

Sensitivity analysis Risk EIRR ENPV (CFAF) Basic scenario Benefits of the project Combination of selling price, yields and level of adoption risks Benefits of the project Costs Increase in prices and fees Delayed benefits by 1 year Rate of adoption – Delay in implementation Delayed benefits by 2 years Mixed scenarios Costs Benefits

D. Sustainability

114. The sustainability of PARFA interventions is acceptable with respect to the following elements, which were incorporated into the set-up of the project.

the construction of simple works for the capture and exploitation of surface or shallow groundwater that can be easily managed and maintained by the beneficiaries, which will have a significant and visible impact for farmers in securing agricultural production and increasing yields.

promoting works on the plots that will reduce soil losses through erosion and salinization;

promoting renewable energies and the development of agricultural products that will result in improved farm incomes and ensured sustainable investments;

Spéculation Sans projet An 1 An 2 An 3 An 4 An 5 An 6 An 7 An 8 An 9 An 10

Mil - 35 88 140 140 140 140 140 140 140 140 Sorgho - 80 200 320 320 320 320 320 320 320 320 Riz BF - 50 350 700 750 750 750 750 750 750 750 Riz 2 - 921 1 702 2 482 3 002 3 002 3 002 3 002 3 002 3 002 3 002 Tomate - - 125 500 500 500 500 500 500 500 500 Poisson - 0 2 3 5 5 5 5 5 5 5 Huitres - 0 1 8 12 12 12 12 12 12 12 Poudre - 0 1 2 2 2 2 2 2 2 2 Miel - 0 0 0 1 1 1 1 1 1 1

Production additionelle avec Projet (t)

Analyse de Sensibilité

∆% Risque TRIE VANE (FCFA)

20.59% 2,459,166,632

‐10% 18.10% 1,854,663,462

‐20% 15.45% 1,250,160,293

10% 18.33% 2,100,580,126

20% 16.35% 1,741,993,619

16.31% 1,668,778,276

13.08% 945,641,629

10% ‐10% 15.95% 1,496,076,956

10% ‐20% 13.41% 891,573,786

20% ‐20% 11.62% 532,987,280

20% ‐30% 8.98% (71,515,889)

20% ‐10% 14.06% 1,137,490,450

Augmentation des prix et des charges.Couts

Taux d´adoption‐ Delais dans la mise en ouevre

Scenario Base

Benefices du projet Combination des riques de prix de vente, rendements et niveau

d´adoption Benefices du projet

Couts

Bénéfices retardés de 1 an

Bénéfices retardés de 2 ans

Mixed Scenarios Couts Bénéfices

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support for the establishment of the SLM/resilience window at the FNDASP.

115. Upscaling. PARFA generally aims to upscale good practices in environmental and climate change risk management by: (i) supporting large-scale awareness raising and communication on these topics; (ii) stimulating debate and exchanges within the value chain platforms; (iii) setting up innovative activities in the field of soil recovery, environmental protection and the use of less polluting processing methods; and (iv) organizing exchange visits on the most outstanding achievements. Efforts in scaling up will be made by capitalizing on the demonstrative nature of the Project (e.g. replicable models of renewable energy, integrated production systems). Efforts will also be made to promote the setting up of a financial window on sustainable land and environmental management (SLEM)/resilience at the FNDASP. These efforts would support and help finance the scaling-up of best practices.

116. To ensure better sustainability of Project outcomes, the planning of the exit strategy should start from the second year of implementation and be taken into consideration in the project proposals in the mid-term evaluation mission.

117. Climate change. The Project includes measures for mitigating climate impacts and for climate change adaptation, including: (i) constructing different types of catchment water works that are adapted to the physical and socio-economic contexts in order to improve savings of surface water and shallow groundwater during the increasingly erratic rainy season or very long dry periods; (ii) implementing SLM practices at the production plots; (iii) promoting renewable energy; (iv) improving techniques for the storage and development of agricultural products; (v) raising awareness and informing on issues regarding the environment and climate risk reduction; (vi) contributing to the monitoring and use of climate data in the project area; and (vii) capitalizing and disseminating lessons learned on climate change resilience.

118. The Social and Environmental Assessment. The diagnosis of climatic and social factors of environmental issues (see details in Annex 12) shows that there are many threats to efficient natural resources and environmental management. All Project activities aim to introduce practices that are more respectful of the environment and that allow people to cope with climate change. The Project should therefore have positive environmental and social impacts. As a result of the preliminary environmental and social risk analysis, the Project was classified as moderate risk, Category B. The classification of climate risk is moderate.

119. The Project should have little or no adverse impacts because it will not implement any input that has a negative effect on the environment and will not construct any infrastructure that would disrupt the surface water flow routes. The environmental issue is integrated into all activities and at all stages of the project cycle but particularly in the specifications of building works by including an environmental review and measures to mitigate negative impacts. The management committees for the hydro-agricultural and pastoral works will be involved in managing the implementation of the identified measures. The increase in agricultural production will be driven by the increased yields through better farming practices and better water management. The Project will finance training that will focus on the rational use of fertilizers and phytosanitary products, and compliance with environmental management standards (i.e. Integrated Production and Pest Management, or IPPM).

120. In terms of the carbon footprint mitigation measures, the Project will only recommend: (i) the sustainable land management practices that limit environmental degradation; and (ii) renewable energy for pumping, storage and small-scale processing of agricultural products.

136. The Project will ensure the setting up of a mechanism to protect the developed surface areas through reforestation, erosion control strips as well as ______ the protection of areas against water runoff.

I. SENEGAL Agricultural Value Chains Resilience Support ... · Currency equivalents v Weights and...

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