The Republic of Angola Artisanal Fisheries and Aquaculture ... · The Republic of Angola Artisanal...

Document Date: 19 September 2014Project No. ??East and Southern Africa DivisionProgramme Management Department

The Republic of Angola

Artisanal Fisheries and Aquaculture Project

Detailed Design Report

Main Report and Appendices

The Republic of AngolaArtisanal Fisheries and Aquaculture ProjectDetailed design report_______________________________________________________________________________________________

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Contents

Currency equivalents iii

Weights and measures iii

Abbreviations and acronyms iv

Map of the project area v

Executive Summary vi

Logical Framework ix

I. Strategic context and rationale 1

A. Country and rural development context 1

B. Rationale 5

II. Project description 6

B. Project development objective 8

C. Components/outcomes 8

D. Lessons learned and compliance with IFAD policies reflected in project design 12

III. Project Implementation 13

IV. Project Costs, Financing, Benefits 21

List of Figures

List of Tables


Appendices

Appendix 1: Country and rural context background 26Appendix 2: Poverty, Gender and Targeting 33Appendix 3: Country performance and lessons learned 45Appendix 4: Detailed artisanal fisheries aquaculture project description 49Appendix 5: Institutional aspects and implementation arrangements 63Appendix 6: Planning, M&E and learning and knowledge management 85Appendix 7: Financial management and disbursement arrangements 101Appendix 8: Procurement 107Appendix 9: Project Costs and Financing Error! Bookmark not defined.Appendix 10: Economic and Financial Analysis 143Appendix 11: Draft project implementation manual 173Appendix 12: Compliance with IFAD policies 175Appendix 13: Contents of the Project Life File 185


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Currency equivalents

Currency Unit = Kwanza (Kz)

US$1.0 = Kz 95.0

Weights and measures

1 kilogram = 1000 g

1 000 kg = 2.204 lb.

1 kilometre (km) = 0.62 mile

1 metre = 1.09 yards

1 square metre = 10.76 square feet

1 acre = 0.405 hectare

1 hectare = 2.47 acres


Abbreviations and acronyms

AECIDAFAPAFD

Spanish Agency for International Development CooperationArtisanal Fisheries and Aquaculture ProjectAfrican Development Bank

AFDEPASCA

African Development Bank Fisheries Development ProjectAccumulating Savings and Credit Associations

AWPBBMFBNACACSCOSOP

Annual Work Plan and BudgetBanco BAI MicrofinancasBanco Nacional de Angola,(central bank)Consultation and Social Dialogue CouncilsCountry Strategic Opportunities Paper

CSP Country Strategy PaperDAFECP

Financial Management Directorate (IPA)Anti-Poverty Strategy

ENSANEOPFAO

National Strategy for Food and Nutrition SecurityEnd of ProjectFood and Agriculture Organization of the United Nations

FILGEPEIDA

Financial Institutions LawCabinet of Studies, Planning and StatisticsInternational Development Association

INAIP

INIPIPAISN

National Institute of Assistance to Fishing Industry and TechnologicalResearchNational Institute of Fisheries ResearchInstitute for the Development of Artisanal Fisheries and AquacultureInterim Strategy Note

GDPHDIMdFMdPMFIMINFAMUMOSAP

Gross Domestic ProductHuman Development IndexMinistry of FinanceMinistry of FisheriesMicrofinance InstitutionMinistry of Family Affairs and for the Promotion of WomenMarket Oriented Smallholder Agriculture Project

NAPANDPNGOPBAS

National Adaptation Programme of ActionNational Development PlanNon-governmental OrganizationPerformance-Based Allocation System

PESNORTEPCMPCUPIMPMIDRCP

POC

Northern Fishing Communities Development ProgrammeProgramme Country ManagerProject Coordination UnitProject Implementation ManualIntegrated Municipal Programme for Rural Development and PovertyAlleviationProject Oversight Committee

PRODECARIMSSNFPA

Northern Region Food crops Development ProjectResults and Impact Monitoring SystemNational Service of Fisheries Surveillance

SPSSUAUNDAF

Statistical Package for the Social SciencesUnit of AccountUnited Nations Development Assistance Framework

UPCPUSD

Provincial Unit Project CoordinationUnited States Dollar


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Map of the project area

The Republic of AngolaArtisanal Fisheries and Aquaculture ProjectDetailed design report_________________________________________________________________________________________

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Executive Summary12

1. In the latest figures available (2012), Angola ranked 148th out of 186 countries on the HumanDevelopment Index (HDI). Despite recent progress and its rise in HDI rankings (in 2004 Angola wasranked 166 among the 177 countries on the HDI), poverty remains prevalent throughout much of thecountry. Sixty-eight percent of the population is estimated to be living below the poverty line and 15%of households are living in extreme poverty. Poverty is more prevalent in rural areas where 94% ofhouseholds are categorized as poor.

2. Government’s main policies to reduce poverty are embodied in its 2005 Anti-poverty Strategy(ECP) followed by the 2009 National Strategy for Food and Nutrition Security (ENSAN). The maingoal set out in the ECP is to cut the country’s poverty level in half by 2015 and to consolidate peaceand national unity through the sustained improvement of the living standards of all Angolans. The ECPhighlights rural development with a focus on the improvement of food security and the revitalization ofthe rural economy. The goal set out by ENSAN is to ensure that all Angolans will have at all timesphysical and economic access to food of adequate quantities and variety to permit them to contributeto the human, economic and social development of the country. Both of these policy documents arereflected in Angola’s National Development Plan 2013 – 2017 (NDP).

3. Inland fisheries and small-scale fish farming represent a vast and largely untapped potentialopportunity to support local economic development in terms of fighting poverty, reduction of foodinsecurity and the generation of employment. The current NDP’s policy in support of the sectoremphasises increased competitiveness and development of industrial and artisanal sub-sectors on asustainable basis. This is to be done through: (i) achieving an increase in sustainable production; (ii)investment in infrastructure and conservation of fish products, and (iii) development of aquaculture.The ECP recognizes the development of marine and continental fish products as a key component ofthe sector with an emphasis on strengthening of production capacity of the continental/artisanal fishproduction. Similarly, ENSAN recognizes the significance of the fisheries sector in contributing toimproved quality of life for the population through increased incomes and food security. The Strategyoutlines the following objectives for the sector: (i) sustainable increase in the development of theresources; (ii) improved well-being of the population through increased, but sustainable, harvesting ofthe resource. This would be achieved by increasing the artisanal fishing fleet through supportivepolicies and public investment aimed at restoration of existing and construction of new infrastructure;and (iii) creation and maintenance of conservation, distribution and commercialization fish networks.

4. The project goal is to contribute to poverty reduction in artisanal inland fishing and small-scalefish-farming households in target communities. The project objective is to improve food security andnutrition among artisanal inland fishing and fish-farming households. The Project is divided into threecomponents: Component 1 – Inland Artisanal Fisheries Development; Component 2 - Small-scaleAquaculture Development; and Component 3 – Project Management. In addition to thesecomponents, project design has incorporated a number of activities that address climate change (CC)issues as they affect fisheries and aquaculture in the Project’s two technical components.

5. The objective of Component 1 is to achieve an inclusive and sustainable development andmanagement of the inland fisheries sub-sector that in the future could be replicated in other provinces.The outcome of the Inland Fisheries Component is inclusive, sustainable inland fisheries sub-sectordevelopment and management contributing to strengthened livelihood strategies at household level.

1 First Mission composition: Carlo Bravi, IFAD Portfolio Manager for Angola, and Random DuBois, who supported andsupervised the team work; Joaquim Tenreiro de Almeida, who coordinated the work of the team members in Angola, specialistin Institutional Development and Fisheries; Chiqui Arregui, specialist in Social Development, M&E and Gender; Jelle Tas,Economist; Bernard Adrien, specialist in Coastal Fisheries and Marketing; Rui Falcão, specialist in Fisheries ProjectManagement; Magnus van der Meer, specialist in Aquaculture; Nicole Franz, specialist in Adaptation of Fisheries to ClimateChange; Ambrósio Barros, specialist in M&E and KM; Danilo Pisani, specialist in Financial Management; and FernandoPacheco, specialist in Institutional Development. Marco Camagni, IFAD Technical Advisor, joined the team for the final part ofthe mission.2 Final Design Mission Composition: Robson Mutandi, CPM Angola; Shakib Mbabaali - Lead Writer and Institutions Consultant;Tas Jelle – Economist and Financial Analyst; Bernard Adrien – Value Chain Consultant Market Analyst; Magus van der Meer-Fisheries Expert; Rauno Zander - Community Savings Mobilization Consultant; and Rui Falcão – Coordinator, Sofala BankFisheries Project.


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To achieve this outcome the Component will support activities leading to the following outputs: (i)institutional capacity strengthened (national, provincial, local/extension service); (ii) improvedcommunity participation in economic and wider local development processes; (iii) increased quantityand quality of fish produced and sold on a sustainable basis; and (iv) improved market relatedinfrastructure.

6. The objective of Component 2 is to support the Government priorities for the aquaculture sub-sector. The outcome is inclusive and sustainable small-scale aquaculture sector management anddevelopment contributing to strengthened livelihood strategies at household level. To achieve thisoutcome, the Component will support activities leading to the following outputs: (i) institutionalcapacity strengthened (national, provincial, local/extension service); (ii) improved communityparticipation in economic and wider local development processes; (iii) increased quantity and qualityof fish produced in fish ponds and sold on a sustainable basis; and (iv) hatchery infrastructureeffectively provides project clients with required inputs.

7. The Project will be implemented in Angola’s central northern region in the four provinces ofBengo, North Kwanza, Malanje and Luanda. Component 1 will cover an area consisting of thecomunas on the north side of the Kwanza River (a navigable route throughout the year; this is of theutmost importance in terms of transport of passengers and goods), between Dondo (North KwanzaProvince) and the mouth of the Kwanza River (Luanda Province). The area will also cover thecomunas traversed by Dande and Bengo Rivers, in the provinces of Bengo and Luanda. As in thecase of the Kwanza River, this latter area presents a large number of lakes, some of which areseasonally or permanently linked to those rivers. All fishing communities are located around the lakesand along the rivers. The total number of beneficiaries targeted by the component is an estimated15,000 represented by fishermen (10,000) and processors and small traders (5,000). Geographically,some 5.000 would be in Bengo and 2.000 and 8,000 from North Kwanza and Luanda provinces,respectively.

8. Component 2 will be implemented in the provinces of Malanje, North Kwanza and BengoProvinces. The Component will initially focus its efforts in Malanje and expand to other suitable areasin the other two provinces. The total number of beneficiaries targeted by the component is anestimated 800 families represented by 724 families engaged in small-scale family fish farming, 62engaged in aquaculture as emerging farmers and 14 as semi-commercial fish farmers.Geographically, some 678 would be from Malanje and 79 and 43 from North Kuanza and BengoProvinces, respectively.

9. The Ministry of Fisheries is the government body responsible for Angola’s fisheries sector. Assuch, it will be responsible for policy and legislative initiatives that pertain to the Project, making anyinstitutional adjustments in sector administration and providing broad project oversight. A nationalProject Oversight Committee (POC) will be established to guide project planning and implementation,provide high level advice, review and approve annual work plans and budgets, review implementationprogress and impact and address key issues. Coordination and management of the Project will bedelegated to the Institute for the Development of Artisanal Fisheries and Aquaculture (IPA) which willestablish a Project Coordination Unit (PCU) responsible for programming, budgeting, allocatingresources, monitoring and providing information for the evaluation of the Project. In addition, theMinistry of Fisheries will coordinate with other government bodies involved with or influenced by theProject, particularly with the provincial governments of the four participating provinces as well as anumber of NGOs, private firms and individuals involved in the implementation of non-core projectactivities. The Ministry of Finance will play an important supporting role and be responsible for thefinancial supervision for the Project. Additionally, coordination with the local authorities, at provincial,municipal and communal levels, will be established to ensure the achievement of project objectivesand outcomes. The Ministry will also maintain a dialogue with IFAD, particularly on policy andlegislative matters.

10. Total Project costs. Based on current 2013 prices, the total investment and incrementalrecurrent project costs, including physical and price contingencies, is estimated at USD 10.4 million(Kz 988 million). Physical and price contingencies make up 19% of the Project costs. The foreignexchange component is estimated at USD 0.99 million or about 10% of the total project costs. Taxesmake up USD 0.67 million (6.4% of the project costs). It should, however, be noted that a parallelfinancing of €10 million from the European Community (EC) is being finalised; this will be a grant fromthe EC to the Republic of Angola. The EC grant will build on the current AFAP design, focusing onactivities related to: a) savings mobilisation (Accumulating Savings and Credit Associations (ASCAs));

The Republic of AngolaArtisanal Fisheries and Aquaculture ProjectDetailed design report_________________________________________________________________________________________

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b) Capacity Building; c) Nutrition; and d) Climate Change issues. The EC has promised to fast-trackthe approval process of the grant through its internal procedures. This is aimed at enablingimplementation commencement of the grant-funded activities together with the rest of the projectactivities. The EC and IFAD will finance a small team of consultants to undertake the requisite designof the grant interventions.

11. Project Financing. The Project is to be financed by IFAD and the Government of Angola. TheIFAD loan amounts to USD 9.45 million (91% of total project cost). The Government contribution isestimated at USD 0.95 million (9% of total project cost) to cover actual costs, taxes and duties. Aparallel financing of €10 million grant from the EC will form part of the overall AFAP financing.

12. Project benefits. Project benefits are expected to lead to: (i) increased income in rural inlandfishing and fish-farming communities (including fish traders/traditional processors); and (ii) improvedfood security and reduced vulnerability in rural areas. Benefits would be derived from: (i) increasedvolumes to market through technology improvements in fishing and fish farming (e.g., throughimproved and diversified fishing practice, adoption of ice, fish pond construction and fish farmoperation and management); (ii) increased access to production inputs (e.g., ice, fingerlings and fishfeed); (iii) improved rural infrastructure (tertiary market access roads, markets and landing sites)leading to increasingly more rural communities marketing their produce; (iv) reduced transportationcosts and lower post-harvest losses, therefore increased volume of fish marketed due to roadrehabilitation; (v) improved fishers’, processors and traders knowledge and skills on new technologiesand business management techniques; and (vi) improved literacy levels though community training.

13. Another direct benefit of the Project would result from the adoption of ice in the fish value chainfrom production to retail consumption, leading to a direct reduction of post-harvest losses, reliablesupply and improvement of food safety and hygiene standards. It is expected that consumers wouldbenefit from a gradual increase in the quantity and quality of fish products available in local marketswhich are caught, processed and sold under improved hygienic conditions which in turn wouldcontribute to a gradual increase in demand for fresh and processed fish. Infrastructure investments instrategic locations would likely have a positive impact on raising income and standard of living ingeneral in the Project’s rural communities. Group formation and introduction of savings and promotionof basic financial management skills will contribute to this. Finally, the introduction of an inland catchand effort system would contribute to improved fish resource management and enforcement,benefitting fishery stakeholders in the target provinces

14. Risks. The major risks identified in the Project are the following: (i) project-supported activitiesmay contribute to overexploitation of the resource in the absence of baseline information, a monitoringprogram and fishery management actions; (ii) insufficient market demand to absorb the incrementalfish production derived from project interventions; (iii) failure of local authorities to assume theresponsibilities and costs associated with provision of extension services to fishing communities andthe maintenance of infrastructure built/rehabilitated under the Project; (iv) existing policy gaps/failurescould serve to impede the achievement of project objectives; (v) the absence of climate-change datathat impede the assessment of CC related impacts; (vi) limited institutional capacity in climate change;(vii) sustainability of project personnel and equipment after closure of project; (viii) absence of serviceproviders in the project area; (ix) weak financial management in the project’s implementing agency.

15. Sustainability. Factors contributing to the long-term sustainability of project outcomes are thefollowing: (i) government’s long-term commitment to address rural development, poverty alleviationand food and nutrition security and the recognition of the importance and role that inland fisheries andaquaculture sub-sectors play in achieving the stated policy objectives and actions; (ii) adoption of aprecautionary approach to fisheries development capable of being replicated elsewhere in Angola; (iii)establishment of a policy dialogue between IFAD and government leading to the formulation ofpolicies to support long-term sustainable fisheries management in Angola; (iv) creation of strategicinstitutional partner relationships that will continue beyond end of project; (v) institutionalstrengthening at all levels and involving all stakeholder groups participating in the Project; (vi)community empowerment that will lead to their greater involvement in the local level planning andmanagement process and taking of decisions; (vii) the habit of thrift at community level, and theinoculation of basic household financial management skills, will make income and net asset gains ofAFAP at the household level more durable and lasting beyond the active project implementationperiod, and (viii) knowledge management activities providing the opportunity to generate anddisseminate project-related experiences and lessons-learned to other institutions in Angola andbeyond.

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Logical FrameworkNarrative Summary Key Performance Indicators3 Means of Verification Assumptions (A) / Risks (R)

Goal: Poverty reduced in artisanal inland fishingand small-scale fish-farming households in targetcommunities

15,800 households receiving services from the project of which 9,980associated with productive activities (fishing, fish processing and trading)and 5,820 associated with community development 4,300 HH out of poverty by project end

Baseline surveyEnd of project assessmentHealth sector rapid assessmentsImpact assessment surveysBeneficiary database

(A) Long term political engagement, economicstability(A) Natural disasters do not impact locallivelihoods and local food security strategies(A) Government assumes investment for socialservices

Project Development Objective: Improved foodsecurity and nutrition among artisanal inlandfishing and fish-farming households

15,800 HH experience a reduction in the prevalence of chronicmalnutrition from 29.2% to 25%

4,700 HH (30% of HH receiving project services) experiencing animprovement in dietary diversity index

Baseline surveyEnd of project assessmentSpecial project studiesImpact assessment surveysBeneficiary database

(A) Community buy-in to project opportunities isobtained(A) Prices remain within foreseeable inflation(A) Rural areas are sufficiently attractive toencroach populations(R) Absence of service providers in project areas(R) Weak FM capacity in implementing agency.

Component 1: Inland Fisheries

Outcome 1: Inclusive, sustainable inland fisheriessector development and management contributingto strengthened livelihood strategies at householdlevel

3,300 fishermen, processors and traders reporting production/yield orsales increase 10,000 households with 30% increase in income levels 1 market and 5 processing facilities functioning

Baseline surveyEnd of project assessmentIFAD supervision reportsProject statistics

(A) Continued access to land by small-scale fish-farmers/traders/farmers(A) IPA assumes extension agents as part ofoperational costs after a year of service(A) Good governance practices in place(A) Industrial fishing has limited effect on artisanalfisheries(R) Risk of over –exploitation of the resource inabsence of baseline information and adequatemanagement controls(R) Local authorities fail to manage projectsupport infrastructure

Output 1.1: Institutional capacity strengthened(national, provincial, local / extension service)

Fisheries monitoring system in use in inland fishing areas between projectyear three and the end of the project 30 IPA staff trained in 3-4 of the following subjects: fish technology and

fisheries management, outreach, climate change, gender, social issuesand HIV/AIDS*

Baseline surveyEnd of project surveyField staff reportsProgress and annual reportsService provider reportsFinal report on the vulnerabilityand risk assessment and climatechange adaptation proposal

Three monthly reports ofservice providers

(A) Effective coordination between the Ministryof Fisheries and other ministries(A) Good receptivity and effective involvement onthe part of community members(A) Sound collaboration at community levelbetween stakeholders and local authorities(A) Receptivity to good practices on the part offishermen and other stakeholders(R) Delays in the recruitment and positioning ofextension workers and other staff in the field(R) Delays in decision taking concerningproposed management measures(R) Delays in construction and supply ofequipment

Output 1.2: Improved community participation ineconomic and wider local development processes

60 climate change vulnerability assessments carried out 60 community development plans included in municipal government

plans 60 communities targeted with awareness raising and educational

interventions on climate change, gender, food security nutrition, minedetection and HIV/AIDS

20 communities in contiguous areas covered with 20 Savings Groups,properly trained in financial management skills and supervised by

3 All targets to be revised after the completion of the baseline survey when Project-specific data becomes available. All indicators will be disaggregated by gender (men/women or men headedhousehold/women headed household. Other activity related indicators will be collected by project implementers to track targeting effectiveness, and results obtained by men and women targeted),age and target group where relevant.

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specialized service providers and operating actively at project end (R) Limited access to the media by fishers in ruralareas(R) Delays in the appointment of staff to operatethe new facilities

Output 1.3: Increased quantity and quality of fishproduced and sold on a sustainable basis

3,000 people trained in fish production practices/technologies practicesalong the fish production chain* 10,000 people trained in functional literacy* 5,600 people trained in post-production, processing and marketing*

Output 1.4: Improved market relatedinfrastructure

40 Km of roads constructed / rehabilitated 5 market, processing facilities constructed/rehabilitated 30 villages with improved transport routes

Component 2: Aquaculture

Outcome 2: Inclusive, sustainable small-scaleaquaculture sector management & developmentcontributing to strengthened livelihood strategies athousehold level

960 fish-farming households reporting production / yield increase 960 households with 30% increase in income levels*

Baseline surveyEnd of project assessmentIFAD supervision reportsProject statistics

(A) Continued access to land by small-scale fish-farmers/traders/farmers(A) IPA assumes extension agents as part ofoperational costs after two years(A) Good governance practices in place

Output 2.1: Institutional capacity strengthened(national, provincial, local / extension service)

Aquaculture monitoring system in use in target areas between projectyear three and the end of the project

20 government officials/staff trained in aquaculture management,outreach, climate change, gender, mines, social issues and HIV/AIDS*

Baseline surveyEnd of project surveyField staff reportsHatchery reportsProgress and annual reportsService provider reports

Three monthly reports ofservice providers

(A) State institutions execute maintenance ofinfrastructure(R)Existing policy constraints impede achievementof component outcome(R) Government does not have resources tosustain hatchery and milling station infrastructureimprovements after close of project.(R) Difficulties to define effects of CC.(R) Limited institutional capacity in CC in projectinstitutions could impede achievement ofobjectives.

Output 2.2: Improved community participation ineconomic and wider local development processes

10 climate change vulnerability assessments carried out 10 community development plans included in municipal government

plans 5 communities in contiguous areas covered with 5 Savings Groups,

properly trained in financial management skills and supervised byspecialized service providers and operating actively at project end 10 communities targeted with awareness raising and educational

interventions on climate change, gender, food security nutrition, minesand HIV/AIDS

Output 2.3: Increased quantity and quality of fishproduced in fish ponds and sold on a sustainablebasis

960 fishponds supported by the project* 1,300 people trained in aquaculture production, processing, marketing

and functional literacy* 70% of households trained in aquaculture sustain activities after two

years*Output 2.4: Hatchery infrastructure providesproject clients with required inputs

1 million fingerlings produced and distributed to farm-fishing households

The Republic of AngolaArtisanal Fisheries and Aquaculture ProjectDetailed design report

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Republic of Angola

Artisanal Fisheries and Aquaculture Project

Detailed Design Report

I. Strategic context and rationale

A. Country and rural development context1. The Republic of Angola is located in South-western Africa and bordered by the Atlantic Oceanto the west, Namibia to the south and the Democratic Republic of the Congo and Zambia to the northand east, respectively. The country covers an area of 1,247,000 km2 and is the third largest country insub-Saharan Africa. The population is estimated to range between 16 and 18 million people (nopopulation census has been conducted since 1970) of whom some 41% are thought to live in ruralareas. Angola is one of Africa’s most resource-rich countries, representing sub-Saharan Africa’ssecond largest oil producer, after Nigeria, and the world’s fourth largest producer (in value) ofdiamonds. The country also possesses a wealth of other natural resources, including minerals, water,agriculture, forestry and fisheries.

2. In 1975, after 14 years of fighting, Angola became independent from Portugal subsequent towhich it was immediately engulfed in one of Africa’s most prolonged civil conflicts between thePopular Movement for the Liberation of Angola (MPLA) and the National Union for the TotalIndependence of Angola (UNITA). Peace seemed imminent in 1992 when national elections wereheld, but fighting was renewed when UNITA rejected the election results. A new peace agreement, theLusaka Protocol, was signed in 1994, but war resumed in 1998. In April 2002, a cease-fire was calledfollowing the death of the leader of UNITA, Jonas Savimbi, and, on 21 November 2002, theGovernment and former rebels signed a peace agreement that definitively ended the conflict. Thepolitical process appears to have stabilized since 2002 and in the most recent legislative election,President dos Santos’ ruling party won over 72% of the vote.

3. After almost four decades of war, much of the country’s economy had collapsed, infrastructuredestroyed, institutions weakened or no longer functioning, society polarized, an estimated 4 millionpeople displaced, poverty rampant and the newly created political process fragile. Over the last 11years since signing the peace accords, the Government, together with its national and internationalpartners, have made substantial progress in re-establishing the foundation needed to address manyof these problems. This has resulted in the development and implementation of programmes aimed atrestoring order and security, revitalizing the economy, restoration of basic social services and therehabilitation of basic infrastructure.

4. Poverty. In the latest figures available (2012), Angola ranked 148th out of 186 countries on theHuman Development Index (HDI). Despite recent progress and its rise in HDI rankings (in 2004Angola was ranked 166 among the 177 countries on the HDI), poverty remains prevalent throughoutmuch of the country. Sixty-eight percent of the population is estimated to be living below the povertyline and 15% of households are living in extreme poverty. Poverty is more prevalent in rural areaswhere 94% of households are categorized as poor. Other indicators reflecting current conditionsinclude: (i) 38% of the population do not have access to safe water sources; (ii) only 30% of thepopulation have access to government health facilities; (iii) life expectancy at birth is estimated at 47years (2010), among the lowest in the world; (iv) despite major efforts at educational reform, about75% of teachers never received any relevant training; (v) only 54% of enrolled children complete theprimary level; and (vi) Angola ranks 106 (out of 134 countries) in the gender index gap (2009).

5. Women and youth. While efforts have been made to reach gender parity in net enrolment forprimary schooling, girls continue to have less access to secondary education. Illiteracy rates aresubstantially higher in women in rural areas (73.6%) than among men (34.6%). Moreover, thecombination of limited access to formal vocational training and higher education opportunities stronglycondition women´s reduced income levels as such circumstances relegate them to sectors such assubsistence agriculture and informal trade. Women and men participate in unequal terms in themanagement and control over assets and in decision-making, both at household and community level.Over 23% of households are women headed households. Angola is signatory to all major international


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and regional conventions and protocols relevant for the advancement of women´s rights andelimination of all types of violence against women. The Ministry of Family Affairs and for thePromotion of Women (MINFAMU) developed the National Gender Policy and ImplementationStrategy. Despite the approval of the Family Law and the Law Criminalizing Domestic Violence, theuse of customary law, strongly favouring men, is still widespread.

6. The Angolan Government defines youth as people aged 15 to 35. The youth represent about athird of all citizens in the country (32.4%). Migration levels among youth peaks at 24.5% for the agegroup between 25 and 35 years, but is still lower than adults over 35. The youth in rural areas arefaced with the dual challenge of wanting to explore alternative livelihood opportunities to subsistencefarming or small-scale fishing yet with little formal training to equip them to face the labour market.School completion rates decrease after the primary level and progressively drop along the educationpathway. Poverty is lower among the 15 – 35 year old range group than any other age group. Mosthouseholds are youth headed, growing in size progressively with age. It is more frequent for the youthaged 20 – 24 years to have more than one sexual partner, placing this particular group, their partnersand their unborn children at greater risk of HIV. This same group reported to have the highest level ofknowledge on HIV/AIDS.

7. Child Malnutrition. According to the World Health Organisation (WHO) classification system,stunting, wasting, and underweight are all considered to be of “medium” public health significance.Child stunting is a serious public health concern in Angola. Beyond two years of age, deficits in lineargrowth are largely irreversible, and can have detrimental consequences in later life. Furthermore,adolescent girls or women who were stunted during childhood are more likely to have an obstructedlabour or experience other complications during delivery, subsequently heightening the risk ofmaternal mortality. Table 1 summarizes the most recent evidence in the country.

Table 1: Child Malnutrition <5 in Angola

Source: World Bank, Health, Nutrition and Population (HNP) Discussion Paper Angola Nutrition Gap Analysis.Human Development Network 2011

8. Although the national average rate of stunting shows “medium level of public health significance”according to WHO’s cut-off point, disparities by region, sex, and area of residence exist. In the West, South, andCentral-South regions, stunting rates were higher than the national average at 34.3%, 33.7%, and 31.3%,respectively. Although the prevalence of stunting was similar in rural areas (33.0%) and major cities outside ofLuanda (30.1%), rates were considerably lower in Luanda (19.6%).

9. Fisheries sector. In Angola, inland fisheries and small-scale fish farming are thought torepresent a vast and largely untapped potential opportunity to support local economic development interms of fighting poverty, reduction of food insecurity and the generation of employment. The currentNational Development Plan’s (NDP) policy in support of the sector emphasises increasedcompetitiveness and development of industrial and artisanal sub-sectors on a sustainable basis. Thisis to be done through: (i) achieving an increase in sustainable production; (ii) investment ininfrastructure and conservation of fish products, and (iii) development of aquaculture. The ECPrecognizes the development of marine and continental fish products as a key component of the sectorwith an emphasis on strengthening of production capacity of the continental/artisanal fish production.Similarly, ENSAN recognizes the significance of the fisheries sector in contributing to improved qualityof life for the population through increased incomes and food security. The Strategy outlines thefollowing objectives for the sector: (i) sustainable increase in the development of the resources; (ii)improved well-being of the population through increased, but sustainable, harvesting of the resource.This would be achieved by increasing the artisanal fishing fleet through supportive policies and publicinvestment aimed at restoration of existing and construction of new infrastructure; and (iii) creationand maintenance of conservation, distribution and commercialization fish networks.

10. Angola’s inland fishing activities comprise exclusively of artisanal fisheries (either commercialor subsistence), with no semi-industrial fisheries. The majority of the catch is made up of a few

Indicator Prevalence ClassificationChronic Malnutrition(stunting, or height-for-age) 29.2 MediumAcute Malnutrition(wasting, or weight-for-height) 8.2 MediumUnderweight(weight-for-age) 15.6 Medium


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species, mainly tilapia and catfish. Inland fishing areas include small to medium size artificial andnatural lakes, rivers and extensive floodplains; there are no major water bodies. Fishing technology isdominated by a relatively small number of fishing gears, the most common being gill nets (redes deemalhar), hand-lines (linha de mão), cast nets (tarrafa), traps (covo or gaiola), and small-meshseines, often operated by women. The great majority of fish craft used in inland waters are dugoutcanoes, made from tree trunks, and small planked boats (chatas) of 3 to 4.5 metres in length operatedeither with oars or poles (during the dry season). No census exists for the sub-sector so there is noreliable estimate of the numbers of fishers and boats. Fishers are considered to be one of the mostvulnerable groups in Angola’s rural population.

11. Comparatively, the state of aquaculture is much less developed than inland capture fisheries. InAngola, aquaculture development started well before independence but there is little evidence that itgrew beyond its initial rudimentary nature. During the war that followed the colonial period, much ofthe infrastructure that existed was destroyed. Despite a renewed interest in the sub-sector followingthe war, the effects of the war impeded its further development. At present, the sub-sector isdominated by a few small-scale family operations (aquicultura comunal) but in areas close to Luanda,small private companies are more typical. Although production figures are not known, it is estimatedthat commercial farms may produce some tens of tons of fish a year while family fish farming mayaccount for only a few tons of fish per year. Commercialization of products from family ponds seemsalmost non-existent as all fish produced is consumed either by the pond owner and/or sold to theneighbours.

12. Regardless of the source of fish, fish technology (i.e. equipment used and practices applied inhandling and processing fish) is very basic. Fish are gutted often in poor conditions (i.e. with noshelter, no clean water, no waste management), then salted for drying or smoked (the latter only if thefish are in good condition) in simple drum kilns; smaller species and sizes are simply dried withoutsalt. Only a small proportion of the catch is sold as fresh whenever transport conditions allow it to bechannelled to cities (in the best cases, some ice is produced in home freezers and small ice plants inthe city may also be used).

13. Rural Finance Sector: Rural finance services in general still have to regain the presence anddepth developed before the prolonged period of armed conflict. As far as banks are concerned, thesewere the targets of looters, and the entire financial sector moved to urban and ‘more secure’ areasafter cessation of the civil war. As of 2011, there were 19 commercial banks operating in Angola andfocusing their business of retail and corporate banking. A few of these banks have includedmicrofinance services into their products and services. The ProCredit Bank network was present inAngola, but purchased in 2007, by the BAI and then continued as Banco BAI Microfinancas (BMF)4.Banco Sol was founded in 2002 and provides both traditional banking services as well as microcredit.There is currently only one non-bank MFI remaining in Angola, namely KixiCredito. KixiCredito offersboth group and individual lending through its 11 branches across Angola. Non-GovernmentOrganisations (NGOs) with micro-savings and credit services include both local organizations (suchas ADRA) and international NGOs (including CARE and World Vision). Credit cooperatives providemicro-savings and loan services as well, but no recent data are available on their operations andpresence in rural areas of the country.

14. The current single-digit inflation, a strong international reserves position, and a stable exchangerate constitute useful recent developments in the Angolan financial sector, albeit from a base of verylow financial deepening and inadequate coverage with banking services outside the larger urbancenters. The central bank of Angola, the Banco Nacional de Angola (BNA), embarked on a majoreffort to improve data collection and information systems for banking supervision, with gradualengagement in more effective oversight of commercial banks, and a new foreign exchange lawobliges oil companies to channel payments through domestic banks and to settle payments toresident suppliers in domestic currency. This is a major step towards de-dollarization of the economy.The challenges remaining are many, they include the "...baning sector´s chronic excess reserves"5.

15. BNA carries out supervision and regulations of microcredit companies as well as creditcooperatives. Until very recently, MFIs have been regulated as non-bank financial institutions underthe Financial Institutions Law (FIL) of 2005. The FIL includes microcredit companies and credit

4 BMF stands for Banco Africano de Investimentos Micro Financas5 (ÍMF: Angola Second Post-Program Monitoring Note, 18 February 2014


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cooperatives in its definition of non-bank financial institutions. Specific regulations for microcreditcompanies came into effect in February 2011, by means of Presidential Decree 28/1136. BNA iscurrently strengthening its regional reach and is expected to further strengthen the on-site supervisionof different types of microfinance institutions.

16. Current Policy Framework. A key policy set out in Angola’s NDP, 2013 – 2017, is thepromotion of economic growth and increased employment. To implement this policy, publicinvestment will continue to be a major driver. If successful, government estimates that as apercentage of GDP, the petroleum sector will decline from 45% to 27% by 2017. More specifically,government envisions the intensification of economic diversification supported through investment inrehabilitation and development of new infrastructure. In addition, the Government targets the,development of macroeconomic policies to stimulate private sector investment and the creation of amore efficient and flexible public institutional structure. The latter would include restructuring of thecentral and local administrative bodies for purposes of rationalization of resources and increasedefficiency.

17. Government is fighting poverty on various fronts including: (i) development of the 2005 Anti-poverty Strategy (ECP); (ii) the 2009 National Strategy for Food and Nutrition Security (ENSAN); (iii)inclusion of poverty alleviation activities in the national annual plan, covering various social andeconomic sectors; and (iv) inclusion of resources in each municipal budget for implementation ofannual local plans to combat poverty, including rural development. Government continues to allocatemore than 30% of its budget to improving social conditions; a figure that is projected to increase overthe next five years.

18. The main goal set out in the ECP is to cut the country’s poverty level in half by 2015 and toconsolidate peace and national unity through sustained improvement in living standards of allAngolans. The main priorities identified in the ECP are: (i) the reconstruction of infrastructure; (ii)increased access to education, health, and other basic services; and (iii) decentralization ofgovernance structures. The ECP highlights rural development, with a focus on the improvement offood security and the revitalization of the rural economy. Key proposed actions are: (i) strengtheningof the production capacity of the traditional sector, particularly food crops and fisheries; (ii) re-launching of rural commerce; (iii) sustainable development of natural resources; and (iv)reorganization of the legal framework and public institutions. Priority actions are to be guided by thefollowing basic principles: (i) a focus on smallholders; (ii) the importance of community participation;(iii) the concentration of planning, implementation and monitoring at the municipal level; (iv)complementary activities with donors, the private sector and NGOs; (v) specific targeting of women,including access to land; and (vi) HIV/AIDS should be treated as a cross-cutting concern.

19. The goal set out by ENSAN is to ensure that, at all times, all Angolans have physical andeconomic access to adequate quantities of food of good quality and variety to permit them tocontribute to the human, economic and social development of the country. The main policy prioritiesare to: (i) increase and diversify agriculture and sustainable fish production to improve the well beingof the population; (ii) improve the conditions of access to food; (iii) diminish the levels of malnutritionof the population; and (iv) guarantee and secure the sanitary conditions and the quality of food andpotable water. Both of these policy documents are reflected in the NDP 2013 – 2017.

20. In parallel to these efforts, Government is also making considerable headway towardspromoting administrative decentralization and decentralisation of decision making powers from thecentral level to municipalities through several complementary programmes and plans. These include:(i) Integrated Municipal Programme for Rural Development and Poverty Alleviation (PMIDRCP); (ii)the Municipalisation of Health Services; and (iii) Consultation and Social Dialogue Councils (CACSs).In addition, the NDP includes measures that reinforce the integrated vision of development, especiallythe Requalification of Rural Villages (Programa de Requalificação de Aldeias Rurais) expected to beimplemented during the course of 2014.

21. Climate change (CC). Angola’s policy on climate change was set out in the country’s NationalAdaptation Programme of Action (NAPA) in 2011. The NAPA identifies agriculture and fisheries as themost vulnerable national sectors and flooding and water induced soil erosion as major threats. TheNAPA process identified 30 adaptation actions and options to respond to identified threats that werethen ranked based on potential benefits and costs. The forth priority on that list was to “study thevulnerability of the fisheries sector to CC and current modifications.” There are a number of additionalidentified priority actions and options relevant to the fisheries and aquaculture sub-sectors.


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B. Rationale22. The above-mentioned ECP has identified a number of direct and indirect factors contributing tofood insecurity. It also identifies the main factors contributing to the country’s poverty. ENSAN, one ofthe other key strategies in the country’s poverty reduction efforts, recognizes the significance of thefisheries sector in contributing to improved quality of life for the population and its role in contributingto increased incomes and improved food and nutrition security.

23. The NDP’s policy in support of the sector puts emphasis on increased competitiveness anddevelopment of industrial and artisanal sub-sectors on a sustainable basis. This is expected tocontribute to reduced poverty and to improved food and nutritional security. Key priorities include: (i)achieving an increase in sustainable production; (ii) investment in infrastructure and conservation offish products; and (iii) development of aquaculture. In light of the above, AFAP will address some ofthe key multidimensional factors of poverty. It will do so through: (i) direct interventions in the inlandfisheries sector, including artisanal capture fisheries and fish farming as well as strengthening ofmarketing practices and infrastructure; and (ii) supporting community development planning(improved health, child and adult education, increasing functional skills and participation in localplanning).

24. Investments in fishery development will improve livelihoods and food security (addressing thethree pillars of food security – i.e. availability and access to food as well as nutrition) of participatinghouseholds. These investments will generate: (i) increased fish production obtained with theintroduction of fish farming and improved fishing techniques and practices; (ii) reduced post-harvestlosses and improved quality of fish through improved fishing practices, processing and conservation;(iii) increased marketed production; (iv) improvement of hygienic standards emanating from the use ofice, as well as improved fish salting and smoking techniques; and (v) better resource managementand reduction of illegal fishing practices eventually leading to a sustainable increase in fish catch.

25. The multidimensional nature of poverty, recognized in the ECP and in Angola´s humandevelopment indicators, suggests that livelihood and food security improvements alone will not beenough to sustainably overcome poverty and maintain households in rural areas. Access to activecitizenship, local participation in governance processes and access to quality social services (health,education, water and sanitation) contribute to having more time for productive activities. Communitydevelopment planning promoted by AFAP will: (i) strengthen the inclusive and participatory processesof community development; (ii) facilitate the involvement of communities in decision-making bodies atthe local level; (iii) introduce a culture of saving and improved household and MMSME financialmanagement through the promotion of savings groups; and (iv) strengthen local organisations notonly as delivery mechanisms for fishing assets and services but also as more effective facilitators of aholistic development process within the fishing communities.

26. With regard to on-going interventions, AFAP will complement: (i) the MOSAP project in Malanjeprovince; and (ii) the AfDB Fishery Sector Support Project dealing with marine and coastal fisherieswith potential for co-financing also the inland fishery interventions at the national level. IFAD hasexcellent relations with FAO which is currently involved in other fisheries activities in Angola and willlikely be a partner in AFAP implementation.

27. In terms of scaling up, AFAP has a significant potential for widening coverage to a larger andmore diversified programme; the AfDB, EU and WB have expressed interest in developing a commonapproach and possibly co-financing the promotion of the fisheries and the wider agricultural and ruralsectors.

28. IFAD is in a strong position to participate in the process of responding to the challenges and bean effective partner for Angola’s rural development as it has developed a working experience in thecountry since 1991 and more specifically in the fisheries sector (see the lesson learned section). TheFund also has considerable experience in economic and institutional development in rural areas.IFAD will use AFAP to promote bottom-up approaches for rural development centred on capacitybuilding of grass root organisations. It will also provide institutional strengthening to central and localinstitutions based on a thorough needs assessment. In addition, IFAD will tap on its experience fromother projects in the region (e.g. PROSUL and ProPESCA in Mozambique) to ensure effective AFAPimplementation.


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II. Project description

A. Project area and target group

29. Poverty. The Central Northern Region, including the Provinces of Bengo, North Kwanza andMalanje, displays the second highest levels of poverty in the country. Together, these provinces areestimated to represent 8.5% of the national population, with high concentrations of people along themain roads and along the Kwanza River. The following indicators highlight that limited opportunitiesstill keep rural populations in multidimensional poverty in rural areas: only 26.3% of households in thelower socio-economic quintile have access to education, 35.5% of the households have access tosanitation, 24% of the population in these areas live between 0 – 2 km walking distance from a healthfacility and maternal mortality continues to be alarmingly high. Angola thus shows mixed performanceto date in relation to the achievement of the 2015 Millennium Development Goals (MDGs).

30. Agriculture. Small-scale subsistence agriculture is practiced on both sides of the KwanzaRiver in proximity to the project area. Agriculture and small-scale animal rearing (small livestock)provides much of the basis on which local livelihoods depend. Agricultural yields are dependent onsoil conditions, rain and family labour. No household level food reserves were observed in thecommunities visited beyond the cassava planted in the fields, which could keep households fromhunger in the absence of any other food source. Agricultural surplus is sold or traded for basicconsumption goods, while some communities also grow vegetables and fruit crops on small-scale tobe sold either by the road side or formal markets. Associations and cooperatives are known to existthroughout the project area, either as remnants from post-independence times or having re-emergedas a means to access support made available by fisheries and agriculture government supportprogrammes. In general, access to land in the project area does not appear to be problematic for thedevelopment of local livelihood activities. However, this could be different in areas where traditionalland allocated to a given traditional leader (soba) is already under use and no additional land isavailable for the expansion of household livelihood activities. Landlessness, as known in other parts ofthe world where land is privately owned, is not an issue at present in the project area.

31. Artisanal fisheries. Lakes are abundant in the western side of the project area along theKwanza River where fishing is an essential component of local livelihoods and involves aconsiderable proportion of the community and seasonal workers. Fishing with boats or canoes is doneexclusively by men while women fish using more rudimentary means; in both cases, the primarypurpose is that of providing food for the family. Women also process fish locally (salting and smoking)and sell the processed fish through various trade networks between their communities and theLuanda market. Additional activities, such as charcoal production and crafts (e.g. boat building andcarving canoes out of trees) are other livelihood activities practised in these lake communities.

32. Project area. Component 1, which deals with inland artisanal capture fisheries, will cover anarea consisting of the comunas on the north side of the Kwanza River (a navigable route throughoutthe year; this is of the utmost importance in terms of transport of passengers and goods), betweenDondo in the North Kwanza and the Kwanza river mouth in Luanda Province. The area will also coverthe comunas traversed by the Dande and Bengo Rivers, in Bengo and Luanda Provinces. As in thecase of the Kwanza River, this latter area presents a large number of lakes, some of which areseasonally or permanently linked to those rivers. All fishing communities are located around the lakesand along the rivers. The total number of beneficiaries targeted by the component is an estimated15,000 represented by fishermen (10,000) and processors and small traders (5,000). Geographically,some 5,000 would be in Bengo, 2,000 and 8,000 from North Kwanza and Luanda provinces,respectively.

33. Component 2 will promote aquaculture activities in the provinces of Malanje, North Kuanza andBengo. Similar to Component 1 and given the rudimentary nature of the sub-sector, in particular at thefarm level, lack of capacity and uncertainty of data, a cautious approach was taken in componentdesign. The Component will initially focus its efforts in only one province (Malanje). If successful in thecomponent’s first years of implementation, activities will gradually be expanded to other suitable areasin North Kuanza and Bengo provinces. The total number of beneficiaries targeted by the component isan estimated 800 families, represented by 724 families engaged in small-scale family fish farming, 62engaged in aquaculture as emerging farmers and 14 as semi-commercial fish farmers.Geographically, some 678 would be in Malanje, 79 and 43 in North Kuanza and Bengo Provinces,respectively.


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34. Target groups and targeting mechanism. A step-by-step selection process was used todetermine the geographic areas of project intervention and the final target groups at community level.The steps of this process included: (i) Geographical, technical, demographic and livelihoods analysisof the suggested and neighbouring Provinces. This process was to determine the Municipalities andCommunes with the highest potential for the project success; (ii) Definition of selection and rankingcriteria to determine the specific communities where the project would be implemented. The criteriashould be revised and applied once required data has been obtained from the Government; (iii) Socio-economic characterization of communities visited during the design mission according to livelihoods,socio-economic differences and levels of vulnerability, and their proportional weight in communities;and (iv) Definition of project target groups at community level. As a result of this process, three broadgroups were identified at community level defined by their livelihood strategies, socioeconomicconditions and apparent degrees of vulnerability to food insecurity. These are: (a) resilient; (b)vulnerable households; and (c) very vulnerable and asset-less labourers. These broad groups do notnecessarily reflect the exact reality of each target community; rather they offer a generalunderstanding of the logic that drives livelihood activities and the socio-economic dynamics in thetarget communities. Differences can certainly be observed from community to community.

35. Resilient households: These are households that own large productive assets and have strongsocial capital. Given the importance of fishing in the livelihoods of many households in the projectarea, having a boat (this term encompasses a chata, wooden, hand-carved or tree bark canoes)means deriving the same income as those working on it but without having to dedicate time andphysical effort to actual fishing. Rather, the effort is dedicated to fish processing and trade. It is notuncommon for boat owners to have more than one boat. At times, they team up with others that owncomplementary fishing assets (nets) or pay one or two fishermen in exchange for an equal share ofthe catch. In other instances, boat owners actually rent out their boats to fishermen for a fixed price.Boat owners do not generally fish themselves. Individuals in this socio-economic group are, generally,but not exclusively, over 35; time has allowed them to save and invest or to build the social capital toobtain personal loans from relatives or others or to develop the linkages and credibility that facilitateeligibility for inputs in development interventions. Households in this stratum are often engaged inagriculture, especially if there is access to irrigation or mechanized ploughing. Linkages with thenearest city or even Luanda are strong, allowing the members of this group to send their children toschool. Children of this group do not generally return to the community when they grow up. Once acertain age is reached, boat owning households, at times, opt to sell their boats and move out offishing altogether and dedicate their time strictly to agriculture as a means to support the family in thecommunity and help the network of relatives in the city.

36. Households in this socio-economic group visited in Malanje during project design share withtheir inland fisheries peers the ownership of better productive assets and social capital. They appearto have slightly more (albeit still rather modest) material assets in their homes, owning slightly morelivestock (swine and poultry) than other members of the community. These families are generallynumerous in size, are prominent members of associations or cooperatives and appear to be the oneswith the means and ability to better exploit the shared and individual plots of land.

37. Vulnerable households: Households that do not have large productive assets and have limitedsocial capital. Households in this group constitute the vast majority of the population. Strong familyand community linkages do not result in access to credit or to opportunities to own a boat. Hence,these families fish in the boats owned by others, although they generally have nets and other smallfishing equipment. They can also pay others who have no assets at all to fish with them. Thesehouseholds are also involved in fish processing as the catch is equally shared between allcrewmembers and the boat owner. People in this stratum see boat ownership as the only possibleway to move forward in life, as there are no other active business opportunities in the community atpresent. Women headed households participate either directly or indirectly in processing fish; the fishcould be from a direct share of the catch as a boat owner or from a relative’s share as boat owner.Alternatively, women participate through looking after relatives´ children while they travel to markets tosell their processed fish. Agriculture plays a crucial role in the livelihoods of these families and inmeeting minimal food consumption needs. Members of this group tend to use less productive fishingtechniques to get fish when none is available to feed their families (line, mesh fishing on the shoresand through the use of traditional fish traps). It is also common for men in these households to huntfor wild meat in nearby forests. The majority of children in these families grow up in these villages,even if there are no schools within their easy reach. This is one of the reasons why many of the youthdepend on fishing as the main means of survival in the larger inland fishing communities. The


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combination of livelihood activities is an intrinsic coping mechanism to deal with shock. However, theirdependence on their intense labour power, and competing priorities render them more vulnerable tofood insecurity and to deeper levels of poverty than the privileged few, more so when their ability towork is affected.

38. Very vulnerable asset-less labourers: Households that work for others. What these householdsappear to have in common is that they practice no or very limited agriculture and have rudimentary orno fishing equipment at all. This minority group encompasses seasonal workers, recently settledhouseholds, those who choose to move away from the day-to-day commitment of agriculture, work forthose in the two groups described above and even opt for other activities including charcoalproduction and hunting for wild meat. Some elderly people are also in this group. The dependency ofthese households on others places them in a situation of little bargaining power and fierce competitionwith others who have essential small fishing equipment in communities where labourers are notscarce. These households are dependent on relatives or other community members´ charity or inacquiring debt when they are unable to work. Households in this group were described as having littleto no material assets and living in the deepest situations of poverty. They have the greatest probabilityof being food insecure and thus suffering from the worst health and nutritional problems.

39. Common and serious multidimensional, technical and market challenges are faced by all threesocio-economic groups identified at community level, albeit to differing degrees. The Project will, thus,implement key community level and other targeted interventions to address the specific needs of eachgroup according to their ability to sustain improvements.

B. Project development objective40. The goal of the Artisanal Fisheries and Aquaculture Project is poverty reduction in artisanalinland fishing and small-scale fish-farming households in target communities. The project objectiveis improved food security and nutrition among artisanal inland fishing and fish-farming households.

C. Components/outcomes

41. The Project is divided into three components: Component 1 – Inland Artisanal FisheriesDevelopment; Component 2 – Small-scale Aquaculture Development; and Component 3 – ProjectManagement. The Project Management Component has been described in Section III B. In addition tothese components, project design has incorporated a number of activities that address climatechange (CC) issues as they affect fisheries and aquaculture in the Project’s two technicalcomponents. Details on each of the components are contained in Appendices 4 and 5.

Component 1: Inland Artisanal Fisheries Development (base cost USD 4.6 million)

42. The objective of Component 1 is to achieve an inclusive and sustainable development andmanagement of the inland fisheries sub-sector which, once proven, could be replicated in otherprovinces. The outcome of the Inland Fisheries component is an inclusive and sustainable inlandfisheries sub-sector development and management contributing to strengthened livelihood strategiesat household level. To achieve this outcome, the Component will support the following outputs andtheir respective activities:

43. Output 1.1: Institutional Capacity Strengthened. The objective is to provide the necessarycapacity to the institutions involved in implementation of the component. To achieve this objective, theComponent will support the following activities:

Strengthening of the IPA extension services for artisanal fisheries;

Census of inland artisanal fisheries;

Assessment of existing fishing potential in the project area;

Establishment of a monitoring programme of artisanal fisheries. Once established, themonitoring programme will be expanded to cover other key environmental parameters,including climate change, post-harvest fish losses and socio-economic data, including pricesalong the fish production value chain;

Preparation of participatory fisheries management and development plans. These plans willalso include measures to protect the environment and adaptation to climate change, as well astraditional practices where appropriate; and


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Strengthening of institutional capacity to address climate change issues.

44. Output 1.2: Improved Community Participation in Economic and Wider LocalDevelopment Processes. The objective is to improve the general well-being and reach a widerpopulation among the communities participating in the Project. A service provider will be contracted tosupport individual communities during the course of the project’s first three years, covering theactivities described below. Municipal governments will also be targeted and the Consultation andSocial Dialogue Councils (CACS) strengthened to better meet their newly assigned decentralizedmanagement role. Men, women, youth and adults will be included in these community developmentactivities on equal grounds. Under this specific output, the Component will support:

Public awareness-raising. The Component would support public awareness-raising activitiesemphasizing HIV/AIDS, climate change and sustainable use of the resource base, the dangerand avoidance of mines, basic gender concepts, and food security;

Nutrition education. A nutrition education intervention will be undertaken. It will include a studyon local food consumption patterns, food taboos, weaning practices and local cookingpreferences, participatory assessment of critical nutritional problems at the community level(especially for children), the transmission of basic nutrition concepts, facilitating theunderstanding of critical areas of importance in nutrition, the discussion of food taboos;

Preparation of community development plans. A service provider will work with communities toprepare community development plans to be formally submitted to the Municipal Governmentfor inclusion within the municipal yearly plans to be financed under the Integrated MunicipalProgramme for Rural Development and Poverty Alleviation, a decentralised initiativeimplemented under the Ministry of Planning and Ministry of Commerce;

Establishment or strengthening of groups for enhanced thrift and financial management skills inthose participating communities expressing demand for the village level microfinanceinstitutions;

Functional literacy training for selected individuals in the community; and

Support for basic business skills for selected members of the community.

45. Output 1.3: Increased Quantity and Quality of Fish Produced and Sold on a SustainableBasis. The objective is to achieve a higher income for members of fisheries-dependent communitiesinvolved in the fish production chain (covering fishing, handling, processing, storage/conservation andmarketing activities). Specifically, under this output the component will support the following activities:

Market study. A fisheries and aquaculture market study will be carried out at the start of theproject and followed-up at mid-term and end-of project;

Training of fishers, fish processors and traders in fish handling, conservation and marketingtechniques and good practices will be undertaken during the course of the project. In addition,specific training will be organized for fishers on topics such as boat maintenance, netconstruction, net selectivity, net repair, safety on board, etc. This will be done through on-the-job training and demonstrations by either experienced fishing technologists or experiencedfishermen. Opportunities for experience sharing visits in relevant places within Angola or inother countries (e.g. in the context of other IFAD-supported projects in the artisanal fisheriessub-sector) will be explored;

Income generating livelihood activities. It is anticipated that the value chain for fresh fish offersgood development prospects, in particular in municipal and provincial capitals. Theseopportunities can only be adequately exploited if availability of good quality ice and its useunder good practices are promoted along the chain. The use of gas-powered home freezers(readily available in Luanda) to keep ice and eventually fish in major production areas withoutelectricity will be demonstrated together with proper fish containers. The criteria for theselection of the individuals in charge of the demonstration activities will be clearly defined, aswell as their contractual obligations (e.g. possibility to acquire the equipment under a kind ofleasing agreement and turn it into an income generating activity, if it is proven viable; initialdown payment to ensure responsibility of the beneficiary; supply of data on actual use of theequipment, etc.). For fish processing, the project will support part of the construction of


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improved smoking kilns, improved drying racks and eventually solar dryers and use of properindividual storage facilities;

Production of training materials; and

Radio/TV broadcast programmes.

46. Output 1.4: Improved Market-Related Infrastructure. The objective is to provide the neededinfrastructure to facilitate the delivery of fresh fish to the market. Under this output, the component willsupport the following activities:

Construction of handling/processing facilities in selected landing sites along lakes – Underexisting conditions, fish, after landing, is handled and processed in unsuitable conditions. TheProject will support the construction of a number of simple buildings (to be provided withrunning water, sanitation and, possibly, storage space) in selected fishing communities, toensure proper working conditions to fish processors thereby contributing to improved quality ofthe resultant products;

Markets with loading and unloading facilities along major rivers – A lot of fish gets transportedby boat from lakes to municipal cities or directly down the river to Luanda where it is tradedeither on a wholesale or retail basis. The Project will support the improvement of selected sitesalong the river (Kwanza and, possibly, Dande rivers) with landing ramps and market buildings(equipped with running water, sanitation, storage space, electricity, retail area, surface drainageand solid waste disposal); and

Spot-improvement of tertiary roads – A large number of inland fishing centres, particularly thosenot connected by canals to the main rivers of the Project area (Dande and Kwanza rivers) orconnected only during the rainy season, have limited access to consumer markets, with difficult,unreliable or often impassable vehicle access. The Project will support spot-improvement of aselected number of tertiary roads.

Component 2: Small-scale Aquaculture Development (base cost USD 1.93 million)

47. The objective of Component 2 is to support the Government priorities for the aquaculture sub-sector in the provinces of Malanje, North Kuanza and Bengo. The outcome is inclusive, sustainablesmall-scale aquaculture sector management and development contributing to strengthened livelihoodstrategies at household level. To achieve this outcome, the Component will support the followingoutputs and their respective activities:

48. Output 2.1: Institutional Capacity Strengthened. The objective is to provide the necessarycapacity to the institutions involved in the implementation of the component. To achieve this objective,the Component will support the following activities:

Strengthening of aquaculture extension service. The Project will support IPA with a senioraquaculture specialist to support aquaculture development in Malanje and to train project staff.AFAP will also provide budget support to guarantee salaries for new extension workers duringtheir first year with IPA;

Design and implementation of an aquaculture pond monitoring system. The sub-component willsupport the establishment of an aquaculture pond monitoring system that will be expanded overtime to cover post-harvest losses and also provide information about climate variability and CCimpacts;

Support for a policy dialogue with regard to fisheries and aquaculture development. Support forpolicy dialogue between IFAD and government through national and international TA that wouldaddress one or more of the following issues: (i) updating of the country’s aquaculturedevelopment strategy, (ii) formulating new aquaculture regulations with special attention to: (a)characterization and regulation of small-scale aquaculture; and (b) the introduction of exotic fishspecies; (iii) development of incentives for aquaculture; and (iv) policy compliance and lawenforcement.

49. Output 2.2: Improved Community Participation in Economic and Wider LocalDevelopment Processes. The objective is to strengthen communities through increased awarenesson social issues of critical importance to the whole community and, specifically, attend to the needs of


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will-be fish farmers and all other people involved in small-scale aquaculture at the community level. Toachieve this objective, the Component will support:

Selection, organization and building of capacity of community groups to serve as the basis tosupport further project interventions. At present, there are no aquaculture communities in theproject area and any community participation processes would have to be created. Once thegroup of potential fish farmers in a community has been selected, this activity would support thegroup’s organization to serve as the nucleus from which further aquaculture development canbe promoted and coordinated; and

Addressing community needs while forming aquaculture groups and savings groups to promotethrift and improved financial management skills (according to the same process describedunder Output 1.2, above).6

50. Output 2.3: Increased Quantity and Quality of Fish Produced in Fish Ponds and Sold ona Sustainable Basis. The objective is to achieve valuable food from small-scale aquacultureproduction and improve nutrition and welfare of rural agricultural and fisheries families. To achievethis objective, the Component will support:

Mapping study and community selection. A mapping study to identify areas with high potentialfor aquaculture development will be supported followed by community/participant selectionbased on socio-economic criteria and other criteria (availability of suitable land and water,access to fertilizers for the pond and feed for the fish, and motivation/commitment ofparticipants);7

Training and technical support of farmers;

Distribution of pond construction and pond stocking kits;

Promotion of aquaculture management practices for long lasting and sustainable pondproduction;

Aquaculture inputs study; and

Cage farming study. There is a good potential for pen/cage fish farming in Bengo and Luandaprovinces due to existence of several larger lakes and the proximity of a good market for fish. Astudy would be supported no later than the end of PY 3 to assess the potential of cage farmingin these two provinces. The findings would be used when planning aquaculture activities for PY4 and 5.

51. Output 2.4: Hatchery Infrastructure Effectively Provides Project Clients with RequiredInputs. The objective is to provide infrastructure and expertise for the production of essential inputsfor small-scale family aquaculture. To achieve this objective, the Component will support the followingactivities:

Rehabilitation of Malanje fish hatchery. The Spanish Agency for International DevelopmentCooperation (AECID) supported the construction of a tilapia fish hatchery in Malanje (near thecity). AFAP will transform this hatchery, with limited investment, into a unit for improved tilapiafingerling production and may be used as a provincial training centre; and

Construction of a feed mill. Following the results of the study mentioned above, at the end ofproject year PY 1 or start of PY 2, AFAP will support the construction of a basic feed mill nearMalanje city for the production of a simple fish feed made from locally available ingredients andsuitable for semi-extensive tilapia farming.

6 The awareness-raising on CC and CC vulnerability and risk assessments.activity has been described under Outcome 1 to becarried out by the community facilitator. While the assessment will equally address aquaculture and the basic approach wouldbe the same. The outcome of the vulnerability and risk assessment however would be expected to be different compared to theone conducted in inland fisheries communities.7 FAO will conduct an aquaculture mapping study in North Kuanza to determine the aquaculture development potential of theprovince. This study will assess both the possibilities for commercial and family fish farming. If successful, it is expected to berepeated elsewhere in the country (and Malanje and Bengo will be provinces which will quite likely be included in such a study).


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D. Lessons learned and compliance with IFAD policies reflected in project design

52. IFAD has been working in Angola since 1991, beginning with the Fund’s first project, MalanjeSmallholder Sector Rehabilitation Project. After the signing of the Lusaka Peace Accord in November1994, IFAD began formulating new projects. At the time of the preparation of the country strategicopportunities paper (COSOP) in 1994, there were two active loan-funded projects, the NorthernRegion Food Crops Development Project (PRODECA) and the Northern Fishing CommunitiesDevelopment Programme (PESNORTE). PESNORTE became effective in 1999. However, with thenew outbreak of war in late 1998, it was impossible to work in the field and operations all but ceased.When the war ended in early 2002 and the security situation improved and the project area becameaccessible again, project objectives were re-evaluated and judged to still be valid. The implementationperiod was subsequently extended to the end of 2007, providing valuable operational lessons to beapplied in future lending programmes. Following the preparation of the COSOP, a new project, theMarket Oriented Smallholder Agriculture Project (MOSAP), was formulated by the World Bank for anamount of USD 49.5 million to be co-financed by IFAD with a loan of USD 8.5 million and becameeffective in 2009. MOSAP implementation is behind schedule, with field activities having started onlyaround mid-2012, some 2.5 years after effectiveness. This delay is attributed to difficulty in recruitingand retaining project staff, as well as extremely limited capacity in the Ministry of Agriculture to guide,manage and monitor the project. Nonetheless, its implementation progress has been encouragingsince February 2012.

53. The lessons derived from previous projects and incorporated into project design aresummarised as follows:

(i) A community development approach to the management of infrastructure can provide goodresults, lead to strengthening of participating groups and, if more intensively used, canprovide reductions in the cost of investments. This experience formed the basis foractivities specified under Outputs 1.2 and 2.2;

(ii) A strategy covering the management of the fisheries infrastructure should be developedduring the start of the Project. Management of project-supported infrastructure will be theresponsibility of a local committee composed of selected members of the community.Following their training, an implementation agreement will be signed between the localauthority (comuna or municipality) and the committee stating the responsibilities of eachparty. This will be formalized early in project implementation;

(iii) For the 1st phase of AfDB-financed Fisheries Development Project, the costing was notrealistic and this led to the cost of road rehabilitation of roads and construction of landingquays to become twice as expensive as initially estimated. This consideration wasaddressed in AFAP design through conservative costing and provision for adequatephysical contingencies;

(iv) Use of service providers for activities that are outside the core competences of the projectcontributes to greater efficiency in the implementation of activities as well as greatereffectiveness in the achievement of project results. Outputs 1.2 and 2.2 will beimplemented through contracted service providers to support communities and increasetheir awareness of risks, promote the habit of saving and improved financial managementskills and identify priorities to improve their living conditions. The service providers willsupport individual communities over three years;

(v) Promotion of Savings and Credit groups in several rural development projects, involving amajority of women, provided their empowerment and economic integration in thecommunity has potential to be replicated89

(vi) Facilitating access to fishing equipment through private traders and credit arrangementschannelled by public institutions had a very low degree of recovery and is notrecommended for future interventions. This was not incorporated in project design;

8 This activity will largely be the focus of the EC Grant.9The recent Project Completion Report for the IFAD supported Mozambique Rural Finance Support Programme(PAFIR) January 2014


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(viii) Development of a strategy for the operation and maintenance of infrastructure shouldinvolve all stakeholders and be developed before construction is undertaken. In AFAP, thishas been addressed through capacity building, awareness raising and, in coordination withthe fisheries administration authorities, the development and implementation of community-based development and management plans;

(ix) The creation of a dedicated project management unit, separate from the implementinginstitution, is an effective implementation instrument for decision-making, coordination andguidance of project activity implementation. Thus, a Project Coordination Unit (PCU) will beset up within IPA in Luanda to enhance coordination and policy dialogue within IPA and theMinistry and also to draw lessons from other programmes in IPA in Luanda eg the AfDBsupported programme. However this Luanda-based coordination unit will be lean instructure and only with key personnel for dealing with programme management, M and Eand financial management. The rest of the team will be based in Caxito, Bengo Provincewith strong Provincial Programme Management Units (PPMU) in each Province ie Bengo,Malange, and Cuanza Norte. The Luanda Province PPMU will be based within the PCU inLuanda. This is to enhance the decentralization policy of Government from the centre toprovinces

(x) Inclusion of local authorities at the provincial level to monitor project activities facilitateslocal coordination and contributes to a successful project implementation. In each of thefour provinces where AFAP activities are to be implemented, the provincial directoratesresponsible for the fisheries policy and legislation issues relating to their respectiveprovince, as well as the overall coordination of the actions carried out by the fisheriesinstitutions present, will participate in the Project, fulfilling a role of local coordination andguidance; and

(xi) An incentive system covering key staff involved in the implementation of project activitieshas proved to be an effective element in promoting project performance and helping toachieve project targets. Project staff will be paid competitive salaries and provided with asatisfactory work environment that will allow developing professional skills that will servetheir future professional advancement.

III. Project Implementation

A. Approach

54. The basic approach to project implementation was shaped by the following factors: (i) thecapacity of IPA, the project’s main implementing agency, like many other government bodies inAngola, is limited particularly with respect to supporting the implementation of externally-fundedprojects; (ii) with the exception of Malanje Province, IPA has no presence in the project area; (iii) thereis no recent population data from municípios and comunas nor on the number of fishermen, units ofproduction, catch statistics, etc. (the last population census was conducted in the 1970s and nocensus of fisher groups appears to have ever been conducted in Angola); (iv) no information exists onthe status of the fish resources; (v) unlike inland fisheries, there is limited experience and lessons-learned and an absence of organized community groups in the aquaculture sub-sector; and (vi) pro-community socio-economic policies, such as local empowerment, targeting and promoting genderequity are, at best, incipient in Angola’s rural development sector.

55. These factors provided the justification for adopting a relatively simple and gradual approach toproject implementation. Under Component 1, much of the effort in the initial years of projectimplementation will be directed towards: (i) increasing capacity through creating a strong PCUcomplemented with service providers, training of IPA staff (and the staff of other participatinginstitutions) and strategic partnering; (ii) contracting of studies to provide the needed information forsound investment decisions, including a census of fishermen, resource inventory of existing fishstocks in the project area and a marketing study; and (iii) the development of community-basedresource management plans to ensure that fish stocks are managed sustainably. As these conditionsare gradually put in place, the thrust of the implementation effort will shift to supporting interventionsdesigned to increase fish production and income, resulting in an improvement of livelihoods.

56. Similarly, under Component 2, as the country has little experience in aquaculture, activities willinitially contribute to creating the conditions needed for aquaculture development (e.g., organizing


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local communities, training of extension workers, provision of high quality inputs, etc.). Subsequently,the aquaculture extension workers will provide assistance to selected local communities to developaquaculture activities and support them in planning, construction and management of fish ponds. Withincreased fish production, some surplus fish catch will become available for marketing. Onceemerging farmers accumulate money from fish sales, it is expected that some will shift to commercialfish farming by investing into improved production (improved fish feed or additional ponds constructedthrough hired labour). As this is a relatively new approach, aquaculture interventions will first takeplace in the province of Malanje, where an existing hatchery will be rehabilitated under the Project. Asexperiences and lessons learned are generated under Component 2, aquaculture interventions will bereplicated in two other provinces (Bengo and Kwanza Norte).

57. A third element of the project implementation approach relates to increasing communityawareness, participation and, eventually, empowerment in local planning and decision-making. Thisis expected to lead to improved livelihood through access to social services consisting of access toimproved health, child and adult education, development of a savings culture, training in thedevelopment of functional skills and facilitating increased participation in local planning while, at thesame time, building local support for the Project. These activities can be grouped into the followingcategories:

Equity targeting: The Project will seek to introduce relevant innovations and capacity buildingand offer products/services that meet the needs and capacities of the different social groups,age groups, men and women. Such an approach will allow beneficiaries to participateaccording to their needs and capacities and progress at their own pace.

Promotion of integrated community development: Support will be provided to individualcommunities through a service provider over the first three years of the Project with a pre-defined set of activities tailored to local needs. Activities that would be supported incommunities include: (i) public awareness-raising on critical issues as HIV/AIDS, climatechange, mine recognition and avoidance, gender and food security; (ii) nutrition education; (iii)preparation of community development plans; and (iv) support for basic business skills inselected members of the community. This set of activities supports some of the main prioritiesset out in the Government’s Anti-poverty Strategy (ECP) including (i) provision of increasedaccess to education, health, and other basic services; (ii) re-launching of rural commerce;(iii) promoting community participation; (iv) specific targeting of women; (v) treating of HIV/AIDSas a cross-cutting concern; and (vi) strengthening planning, implementation and monitoring atthe municipal level.

Capacity building of municipal Governments will also be targeted for building local capacityto assume recently assigned decentralized management roles in coordination with localcommunities. This element of the approach supports government’s policy on Modernization ofAdministration and Public Management in particular: (i) the Integrated Municipal RuralDevelopment and Fight against Poverty Program (PMIDRCP); (ii) the Municipalisation of HealthServices; (iii) Consultation and Social Dialogue Councils (CACSs); and (iv) Requalification ofRural Villages.

Functional literacy: Given the high levels of illiteracy in the project area, linkages will becreated with state and/or other institutions capable of training community members as trainersin basic functional literacy. These community literacy trainers will receive a stipend from theProject and on-going support or refresher training from the training institutions.

Participatory planning, monitoring and evaluation: All project activities will be carried outthrough the joint and coordinated efforts of IPA project staff, community facilitators (from theservice provider), functional literacy trainers and other stakeholders at the community level. Allactivities will be jointly planned and regularly monitored with communities against targets andexpected results (for further detail on these aspects see Appendix 6).

58. The approach for the operation and maintenance of project-related infrastructure will relyon a local committee composed of selected members of the community. An implementationagreement will be signed between the local authority (comuna or municipality, formal owner of theinfrastructure) and this committee, stating the responsibilities of each party. In principle, the insuranceshould be borne by the committee. This is an approach that has proven successful based on theexperience of ProPESCA in Mozambique. Where considered appropriate, the engagement of privatesector entities in the operation and maintenance of project-related infrastructure will be explored.


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B. Organizational Framework

59. Institutional responsibility. The institutional strategy is to involve all the players on whichachievement of the project objective and outcomes depend. The main project partners are: (i) theMinistry of Fisheries (MdP) and subordinated institutions (IPA, INIP, INAIP and SNFP), with IPA asthe designated implementation agency; (ii) the four directorates of Agriculture and Fisheries in theinland provinces (North Kwanza and Malanje) and of Fisheries in the two coastal provinces (Bengoand Luanda); (iii) municipal and communal administrations, community leaders (coordinators andsobas/traditional chiefs) in the project areas; (iv) fishermen, processors and small traders; (v) smallentrepreneurs linked to the consumption markets involved in marketing of fishing produce andsupplying of fishing equipment, gear and materials; (vi) service providers involved in theimplementation of activities; and (vii) private contractors for the roads and fishing facilities.

60. MdP will be responsible to oversee AFAP implementation, chairing the Project OversightCommittee (POC) and ensuring the consistency of AFAP with government policy. The MdP will beresponsible for policy and legislative initiatives that pertain to the Project and for promoting anyinstitutional adjustments in the sector administration, as well as for the coordination with relevantministries and provincial governments. The Ministry will also be responsible for ensuring thatcounterpart funds and agreed contributions from government are duly budgeted and provided in atimely manner. The Finance Department of MdP will be the unit responsible for giving final approval torequests to IFAD for ‘no objection’ regarding the AWPB, Procurement Plan and contracts.

61. Project implementation will be the responsibility of the Institute for the Development of ArtisanalFisheries and Aquaculture (IPA). The IPA is an institution subordinate to the MdP with administrativeand financial autonomy. It is headed by a General Director (GD), who is assisted by two deputies. TheGD is also assisted in his/her duties by a Directory Board and a Technical Advisory Council.

62. In order to ensure efficient project implementation, MdP will delegate project operationalresponsibilities to a PCU that will be created within IPA. This delegation of authority to the PCU willcover all management and coordination responsibilities required for the efficient implementation ofproject activities. IPA central departments and its provincial representations would implement theproject’s core activities with the support of PCU team members. The execution of these activities bythe PCU would be specified in the AWPB and annual procurement plan, as approved by MdP. ThePCU will be based within IPA in Luanda. However strong PPMUs will be established in each for thefour provincial centres ie Caxito, Bengo Province, Ndalatando in Cuanza Norte, Malange and Luanda.

63. Angola’s Ministry of Finance is responsible for financial supervision for all governmentprogrammes and the supervision of the budget process and the allocation of project financing fromexternal sources.

64. The provincial directorates for Agriculture and Fisheries (in the two inland provinces) andFisheries (in the two coastal provinces), are responsible for the fisheries policy and legislation issuesin their respective provinces, as well as for the overall coordination of the actions carried out by any ofthe national fisheries institutions present in the provinces. Project activities will be implemented inmunicípios, comunas and fishing communities. The involvement of the provincial directorates isimportant but their role will be mainly that of coordination and guidance. The participation of theseentities in project activities will be facilitated by the PCU with the assistance of IPA.

65. Project oversight and coordination. Reporting on physical and financial progress will be inconformity with internal IPA requirements and will also feed into the project’s monitoring system. Theentities for monitoring and coordination include: (i) Project Oversight Committee (POC), (ii) SteeringCommittee (SC) in IPA; and (iii) provincial coordination meetings involving the four participatingprovinces.

66. The POC will be created and chaired by the MdP, prior to project start-up. The mainresponsibilities of POC will be to: (i) guide project implementation strategy and supervising projectplanning, (ii) review AWPBs and procurement plans before they are submitted to IFAD, and (iii)examine the progress in implementation and impact. It will also discuss and provide guidance onissues that may be considered relevant for the success of the project. The POC will meet at leasttwice a year and/or whenever necessary.

67. The POC membership will include representatives from agencies that are directly involved inthe implementation of the Project. These are: (i) the Minister of Fisheries, (ii) the Secretary of State ofFisheries, (iii) Ministry of Finance, (iv) the Financial and Planning directors of MdP, (iv) the ministry of


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commerce (as one of the implementing agency of the Integrated Municipal Programme for RuralDevelopment and Poverty Alleviation; (v) the General Director and the heads of the executivedepartments of IPA, and (vi) representatives of the provincial governments. In addition, arepresentative of IFAD and the project coordinator will be invited to participate as non-votingmembers. For the purpose of approving AFAP-related matters, the POC quorum would be set at fourcommittee members or their designated representatives. This is meant to avoid delays in approvingProject-related aspects that could, in turn, have a negative impact on implementation progress.

68. In order to guarantee adequate coordination with the provincial governments, a joint projectsteering committee (PSC) will be established at the provincial level with the main responsibility for theformulation of the annual work plan and budgets. It will be composed of the provincial directors ofAgriculture and Fisheries, the municipal administrators, the IPA provincial representatives, the projectcoordinator and selected PCU staff. Meetings would be held twice a year and the provincial directorsfor Agriculture and Fisheries would alternate as chairperson of this joint steering committee.

69. The Directory Board of IPA will dedicate four working sessions per year to monitor the progressof the Project. The objectives of these sessions are to: (i) review progress in implementation; (ii)decide on any corrective measures that may be required to achieve the project targets; (iii) review andapprove the quarterly and annual reports of service providers, and provide guidance as required; and(iv) review all the subjects and information to be presented to the POC, including AWPBs andprocurement plans and the project progress reports.

70. In order to ensure adequate coordination with the provincial governments, periodic meetingswill also be supported at that level. These meetings will be part of the process for formulation of theAWPBs and preparation of the six-monthly and annual reports on the progress of the project. Theywill involve the provincial directors of Agriculture and Fisheries (North Kwanza and Luanda) andFisheries (Bengo and Luanda), municipal and communal administrators, IPA provincialrepresentatives, the project coordinator, selected PCU staff and representatives from the fishingcommunities where AFAP will have activities. Meetings will be held twice a year.

71. Project Management. The PCU will be responsible for coordinating the AFAP activityimplementation. The work of the PCU team will, to a great extent, be divided between the directexecution of activities that are related with IPA core responsibilities and the selection, contracting andsupervision of service providers in charge of other activities dealing with social and communitydevelopment. Additionally, the PCU coordinator, with the assistance of IPA, will have to ensure thatan effective coordination mechanism is established with the provincial, municipal and communaladministrations in the project area. Operational aspects related to financial management andprocurement will be submitted by the PCU directly to IFAD.

72. The PCU will be composed of: (i) project coordinator, (ii) fishing technology specialist, (iii)aquaculture specialist, (iv) community development specialist, (v) M&E specialist, (vi) financial andadministration manager, (vii) procurement specialist, (viii) accountant, (ix) administrative assistant and(x) 2 drivers and one boat operator (ToRs can be found in Appendix 5). The Project Coordinator willhave direct responsibility for team members and their performance and will report directly to theGeneral Director of IPA.

73. Collaboration with other developing projects and agencies. The two ongoing fisheriesprojects – FAO TCP in Lake Ngolome and the AfDB-financed Fisheries Development Project –represent opportunities to share experiences, information and combine efforts in areas of commoninterest. In particular, the AfDB project will be under implementation when AFAP becomes effective.The presence of FAO working in Angola’s fisheries sector also provides other opportunities tocollaborate. In particular, reference is made to the establishment of the Project’s monitoring systemand to the establishment of an agreement with IPA for the implementation of Component 2.

74. The future aquaculture centre in North Kwanza for the production of fingerlings and fish feed,presently under construction, may also provide an opportunity for collaboration and eventuallyinfluence the configuration of the hatchery in Malanje Province whose rehabilitation is planned underAFAP.

75. As a result of community development activities to be supported by AFAP, proposals will bebrought to the attention of the local authorities, especially municipal administrations. In particular,contents of the AWPBs during their preparation and proposals by the communities for the inclusion ofsocial investments in the Integrated Municipal Programme for Rural Development and Poverty


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Alleviation might be discussed locally. At the municipal level, it will also be important to establish linkswith the Consultation and Social Dialogue Councils (CACS) which brings together the main playerspresent in the município and have the role of advising the municipal administrator.

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

The M&E System

76. The Project´s Monitoring and Evaluation (M&E) system will constitute the main projectmanagement tool for tracking project implementation progress and results. The components of theM&E system will be: (i) baseline and end of project surveys, (ii) regular project M&E data collectionand (iii) special studies. A project database will be created for storing: (i) the baseline and end ofproject survey data, and (ii) all monitoring data associated with the implementation of project activitiesdirectly linked to outputs.

77. All activity-related data will be collected by stakeholders working at the community level(extension workers, service providers and contractors). These data will be entered in activitymonitoring sheets and reported monthly (or more frequently, if deemed needed). Data reporting formswill accompany reports to be sent to the PCU. Primary data will initially be collected and maintainedby socio-economic group, age and gender subsequent to which they will be aggregated bycommunity, commune, municipality and for the project globally as a basis for monitoring, analysis anddecision making at the different levels. The PCU will submit six monthly narrative and financial reportsto the IFAD Country Programme Manager (CPM). These reports will contain data on pre-definedbasic indicators.

78. There will be a particular emphasis on adequate M&E systems being put in place also for theservice providers engaged in community development and in promotion of savings groups. Manyprogrammes face limitations regarding this important element because even when the M&E system isplace, it is usually fragile, static and not correctly connected with and/or based on the project’s logicalframework. Provisions will be made to have an M&E system to report: process; lesson learnt;changes and impact. These areas will be clearly identified, the procedures spelled out and the meansto verify them established.

79. In line with IFAD target to bring 80 million people out of poverty by 2015, the M&E system ofAFAP will devote significant attention to assessing the poverty impact. Under AFAP, rigorous impactassessment will be conducted using appropriate methodology that ensures that the target group getscompared with a control group not benefiting from programme support. Impact surveys will beimplemented at baseline, midterm and completion. These surveys will monitor logical frameworkindicators, IFAD corporate Results and Impact Management System (RIMS) indicators as well asspecific poverty reduction impact. They will be undertaken by a specialised service providercontracted through a competitive process. The impact assessment will also build on the informationgathered through the database of programme beneficiaries (see above).

80. Data maps will be generated as required at all levels to serve the primary function of datacollection - the use of data to review project strategies in regular planning cycles. Planning will followthe same schedule as reporting at the different levels, within the overarching commitments assumedin the annual plan.

81. The process of preparing the AWPB will be organised in such manner that a consolidated draftthat has been vetted by the Project´s Steering Committee is submitted to IFAD for review andprovision of a ‘No Objection’ latest by 31st October of every Project Year or 60 days before the start ofthe proceeding Project Year. Proper planning and coordination of this process is critical to ensure thetimely submission of the draft to each level of approval. The AWPB final draft would need to havebeen distributed to all AFAP implementing agencies by 31st December of every Project Year to ensurea prompt start of activity implementation for the proceeding Project Year.

82. A full-time M&E Officer under the supervision of the PCU project coordinator will be responsiblefor the monitoring and evaluation of the Project. For more detail on the Project’s M&E system, refer toAppendix 6.


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Knowledge management

83. The Project´s M&E system will generate quality data that will enable IPA and the Ministry ofFisheries to carefully monitor the Project and provide high quality information on the development ofinland fisheries and aquaculture in the project area at higher levels of the Government. The hierarchyof project objectives will be the founding platform for IPA to widen its participation in discussionsbeyond the technical domains that it is responsible for managing in the country. It is expected that asa result, this will strengthen the quality of IPA´s participation in the Technical-Scientific Council andthe Integrated Management Council. Likewise, this will equip IPA with the ability to participate in high-level national and international fora on rural livelihoods and rural development, food security, nutritionand poverty reduction contributing to the existing knowledge base, planning and policy discussions.Based on IFAD´s broad and multifaceted experience with different types of group-based savings andcredit arrangements in the region, knowledge captured in other countries of the region will be madeavailable for AFAP. In turn, the AFAP experience will feed into the wider regional learning oncommunity driven development and, in particular, the development of adequate rural microfinancesystems.

Financial management, procurement and governance

84. Implementing Organization. Financial management of the Project will be coordinated byIPA through its Financial Management Directory (DAF/IPA) in support of the Project CoordinationUnit and its IPA provincial representatives in project implementation. The PCU will be responsiblefor administrative management, finance and accounting, budget planning and cash flow,procurement as well as payments from project accounts. As appropriate, the Cabinet of Studies,Planning and Statistics (GEPE) of MdP together with the Ministry of Finance (MdF), will provide allthe means necessary for DAF/IPA to conduct the financial management of the Project, includingbudget estimates, mobilizing counterpart funds, supervision and making of disbursements amongothers. DAF/IPA and the financial and administration manager, of the PCU will work in closecollaboration and play an important role in financial management and project procurement. This willpermit the assessment and evaluation of the Project in areas of control, planning, implementationand monitoring as well as in promoting coordination with MdP on fiduciary issues.

85. Financial Staffing. The PCU’s financial team will be composed of personnel that will becontracted through a competitive bidding process. Selection will be based on the criteria ofprofessional qualifications, experience and the needs of the Project. The team will be led by anexperienced Financial and Administrative Manager knowledgeable of IFAD’s financial management,procurement and disbursement requirements.

86. Accounting Policies and Procedures. The Project will comply with the International PublicAccounting Standards of the International Federation of Accountants (IFAC). The accounting reportsof the Project will be prepared in accordance with the “cash basis” method of accounting. A FinancialManagement Procedures Manual will be prepared as part of the Project start-up activities and willcontain the accounting policies and procedures including the chart of accounts and the financialmanagement arrangements to be created for the Project. The purchase or creation of a satisfactoryfinancial information management system acceptable to IFAD will be a condition of projecteffectiveness.

87. Financial Reports. The Project’s information system will provide financial informationgenerated through Project Financial Statements that will identify sources of resources, expenses bycomponent and category presented by project year and cumulative to date. Available resources willbe applied exclusively for the achievement of project objectives supported by the respective fiscalstatements and documented by means of Summary Sheets (SS) and Statements of Expenditure(SOEs).

88. Project Budgeting System. The annual project budget will be prepared on the basis ofguidelines and regulations reflecting government policy and in coordination with the preparation ofProject’s AWPB. The procedures for preparing the annual budget and projecting financing needs willbe documented in the Manual of Financial Procedures. The budget will cover all project activities andwill be prepared no later than two months before the relevant period of implementation.

89. Disbursements Arrangements and Funds Flow: IFAD will disburse loan resources through aspecific bank account in dollars (Designated Account) to be opened in a commercial bank acceptableto IFAD. The IPA will make the payments for eligible expenditures through this account or by way of


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an operational account denominated in local currency also to be used exclusively for projectpurposes. The Government of Angola will open an exclusive account to support agreed oncounterpart financing. The PCU will send to the commercial bank Requests for Withdrawals to coverpayments for goods and services, transfers to community organizations and other entities involvedin project execution. All these actions will be registered in the project’s Financial InformationSystem and in the State Integrated Financial Management System (SIGFE). In the case of the needfor a transfer of resources to the provinces in support of project implementation, these will be madeavailable from the operational account to the provincial account. The arrangements for the creationand supplying of these provincial transfers will be detailed in the project’s Financial ProceduresManual and reflected in the audit plan.

90. Internal and External Audit. The PCU will contract an internal auditor to ensure the efficientcompliance with audit requirements. All accounts, including the Designated Account and SOEs foreach Fiscal Year, will be audited by qualified and experienced independent external auditorsacceptable to IFAD. The consolidated annual financial statements will be compiled by the PCU/IPAwithin three months after the end of each fiscal year in readiness for the audit. A copy of thesestatements should be furnished to IFAD within four months of the end of the fiscal year.

91. Procurement. The Project will follow IFAD’s procurement procedures. In this regard, the PCUwill be aided by an experienced Procurement Specialist who will be competitively and timely recruitedalong with all other PCU staff. The Financial Procedures Manual will provide: (i) the operationalprocedures for procurement, management of contracts and payment of receipts; (ii) a description ofthe monitoring system to execute contracts; and (iii) the creation of an archiving system and registryof procurement records. IFAD will provide support in the project’s first year to avoid possible delays inproject execution. Resources for training in management of procurements will be included in theproject’s budget.

92. Procurement Methods. The Project will follow the following means for procurement andcontracts of goods, works and non-consulting services: (i) International Competitive Bidding (ICB), (ii)National Competitive Bidding (NCB), (iii) International or National Shopping (IS/NS); and for theselection of consultants: (iv) Quality and Cost-based Selection (QCBS), (v) Quality-Based Selection(QBS), (vi) Fixed Budget Selection (FBS), (vii) Selection based on Consultant Qualifications (SCQ),(viii) Least-Cost Selection (LCS), and (ix) selection of individual consultants (CI). Procurementsinvolving local communities will be conducted according to procedures to be detailed in the ProjectImplementation Manual (PIM) and acceptable to IFAD.

93. Contract and Procurement Plan. Contracts to be financed through loans will be specified in aContracts and Procurement Plan as agreed with the PCU and IFAD. For each contract, the Plan will:describe the nature of the contract, identify procurement method or method of consultant selection,provide estimated costs, requirements for revision, estimated period of effectiveness, categories andsource of finance. A draft Procurement Plan that covers the first 18 months of project implementationwill be prepared prior to disbursement of the initial allocation. The Plan will be reviewed annuallytogether with the IFAD’s review of the AWPB and adjusted if necessary. Similarly, the Plan could beable within the year of implementation, in consultation with IFAD, to reflect the project requirements.Some procurement and contracts for the Project will have to be completed prior to putting into effectthe Financing Agreement.

94. Governance: Internal controls will be insured through the establishment of separate functions,reconciliation of accounts, differential levels of approvals required depending on amounts of expenseswith support of statements or other documents. Internal controls will be complemented through theefforts of the government internal auditor (Inspecção Nacional de Finanças – INF) and functions of theproject budget and finance systems. In an effort to strengthen internal controls, the PCU will providethe detailed arrangements, flow of resources, roles and responsibilities and procedures in a ProjectFinancial Management Procedures that will be attached as an annex to the PIM. The elaboration ofthis Manual will be a condition for disbursement.

95. Supervision. Supervision of AFAP will be carried out directly by IFAD jointly with the in-countrypartners as an on-going process of implementation support. At least one supervision mission and onefollow-up mission will be conducted every year. Implementation support will focus on solving technicalissues, planning, gender and targeting, procurement, financial management, M&E, partnerships, theintegration of programme activities within the evolving governance framework; and monitoring of theachievement of outputs and outcomes.


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96. Programme review. A joint review will be organised by the Lead Ministry and IFAD during thethird year to: (i) assess achievements and interim impact, the efficiency and effectiveness of AFAPmanagement; (ii) identify key lessons learnt and good practices; and (iii) provide recommendations toensure the sustainability of results beyond completion.

F. Risk identification and mitigation

97. The following general risks were identified for Component 1: Inland Fisheries:

Risk of resource overexploitation. As a result of project-supported intensification incombination with weak management control in the project area, the pressure on theresources would likely increase. Moreover, the identification of specific project areas whereintensification of fishing operations will take place has yet to be selected. Finally, there isno data on the present status of stocks and existing research capacity is low. There is apossibility that the expansion of fishing operations in the project area could lead tooverexploitation of the resource. Mitigation: The Project will take a precautionary approachtowards the expansion of fishing operations and provide funds for the relevant studies toestimate potential and set up a monitoring system for the inland fisheries. The Project willalso support: (i) the development of resource management plans, (ii) the establishment ofa policy dialogue with government leading to improved policies and regulations in supportof sustainable fisheries management, and (iii) the participation of agencies mandated withfisheries management responsibilities (namely INIP and SNPPA) in project activities.

No market for increased fish production. There is a risk that increased productionarising from project efforts in support of both fishing and fish-farming may not be absorbedby the domestic market. This risk could be further exacerbated by externalities, such aslevels of yield derived from industrial fishing and fish imports. Mitigation: A market study tobe carried out at the beginning of the Project (with a follow-up study in Year 3) will giveclear indications on the present structure of the market and its potentialities; particularattention will be put on assessing the potential competition from imported frozen tilapia. Inany case, the Project will not focus efforts on increasing of production before the properresource management system is in place. Overall, this risk appears to be low, given theobvious increasing urban demand yet with limited imports of small pelagic fish (mostlyhorse mackerel from Namibia) by the Ministry of Fisheries (as a function of domesticsupply of horse mackerel from the national fishing fleet);

The local authorities fail to fully participate and support the process of improvementof the market infrastructure. Management committees may not be able to managecomponent-supported market infrastructure. Mitigation: The Project will ensure that theinstitutional capacity is strengthened and that participation in local development processesis improved. These are, indeed, the objectives of outputs 1.1 and 1.2, respectively. Whereconsidered appropriate, the private sector will be engaged to manage the marketinfrastructure.

98. The following general risks were identified for Component 2: Aquaculture:

Policy constraints. There is a number of existing decrees applicable to family-based fishculture that could impede the development from subsistence family aquaculture to a moremarket oriented business. Existing requirements on size, use of native species, waterquality, etc., may serve as disincentives to small-scale farmers to develop themselves insmall-scale enterprises producing for the market. Mitigation: A policy dialogue betweenGovernment and IFAD will be supported under the Project.

Sustainability of hatchery and the milling station. There is a risk at the end of project(EOP) that government will not have the resources to support the operating costs ofproject-supported infrastructure. Mitigation: The Project will support the passage ofoperations from government ownership to an outside operator (e.g. private enterprise, oneof the successful fish farmers or NGO) by EOP. In order to ensure a successful transfer ofthe infrastructure to a non-government entity, the sale should follow recognized bestpractices and be circulated widely among interested buyers.

99. The following general risks were identified for Climate Change activities supported under theProject’s two technical components:


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CC impacts are long-term processes. The lack of time series data for relevant variables(e.g. stock status, temperature, rainfall, etc.) makes it difficult to identify potential CCimpacts on inland fisheries and aquaculture. Mitigation: Traditional knowledge andobservations will be a starting point for capturing potential sector vulnerabilities.

Limited institutional capacity in CC. IPA, INIP and MdP have very limited resources interms of funding and staff, in particular at the provincial level in CC. It is thereforeimportance to develop synergies wherever possible with other partners, including theMinistry of Environment (MdE). Mitigation: The Project will support the participation offisheries staff in inter-sectoral institutional bodies that deal with CC. Participation in thesebodies should facilitate information flow, including on potential funding of CC-relatedactivities in fisheries and aquaculture.

100. The risks associated with institutional aspects and implementation arrangements and thecorrespondent mitigation measures are the following:

Sustainability of project personnel. The intensification of artisanal fishing andaquaculture operations and subsequent promotion of marketing activities would imply asubstantial increase in the number of extension agents based in the IPA representations ofthe four provinces. Government may not be able to allocate the resources required tosupport the recruitment of the additional field agents and equipping them with the requiredfacilities. Mitigation: The Project will attempt to minimize this problem by supporting thesalaries of the agents in the first year and providing the required 4WD vehicles andmotorcycles.

Absence of service providers. The presence of service providers in the rural areas ofAngola is very low and the prevailing conditions are not favourable. There is a possibilitythat service providers may not be found in the project area, especially for communitydevelopment activities. Mitigation: (i) strengthening institutional capacity of these serviceproviders and support the establishment of their presence in areas where their servicesare required (if necessary); and (ii) negotiating with service providers operating inneighbouring countries may also provide a solution in combination with measure (i).

Financial management. The overall risk assessment for financial administration of theProject on the behalf of the implementing agency is rated as high. Mitigation. Experiencedfinancial and administrative specialist and a procurement expert will be members of thePCU. Other Remedial actions have been identified and will need to be discussed andagreement reached between IFAD and the Government to effectively mitigate these keyprocurement risks. These are outlined in the Procurement Action Plan Appendix 7.

IV. Project Costs, Financing, Benefits

A. Project costs

101. Total Project costs. Based on current 2013 prices, the total investment and incrementalrecurrent project costs, including physical and price contingencies, is estimated at USD 10.4 million(Kz 988 million). Physical and price contingencies make up 19% of the Project costs. The foreignexchange component is estimated at USD 0.99 million or about 10% of the total project costs. Taxesmake up USD 0.67 million (6.4% of the project costs). See Table 2 below.


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Table 2: Project Costs by Component

AngolaArtisanal Fisheries and Aquaculture ProjectComponents Project Cost Summary

% % Total(Kz '000) (US$ '000) Foreign Base

Local Foreign Total Local Foreign Total Exchange Costs

Inland FisheryInstitutional Capacity strengthened /a 52 322 10 088 62 410 534 103 637 16 7Improved community participation in economic and local development process 190 693 8 248 198 941 1 946 84 2 030 4 23Improved fishery productivity & sustainable marketing 130 038 7 407 137 445 1 327 76 1 403 5 16Market infrastructures 84 835 - 84 835 866 - 866 - 10

Subtotal Inland Fishery 457 888 25 743 483 631 4 672 263 4 935 5 56Aquaculture

Institutional capacity strengthening /b 33 511 - 33 511 342 - 342 - 4Improved community participation in economic and local development process 35 815 - 35 815 365 - 365 - 4Improved aquaculture productivity & sustainable marketing 99 332 28 852 128 185 1 014 294 1 308 23 15Improved access to inputs 21 340 1 751 23 091 218 18 236 8 3

Subtotal Aquaculture 189 998 30 603 220 602 1 939 312 2 251 14 25Project Management 142 826 22 901 165 728 1 457 234 1 691 14 19

Total BASELINE COSTS 790 712 79 248 869 960 8 068 809 8 877 9 100Physical Contingencies 11 377 - 11 377 116 - 116 - 1Price Contingencies 136 440 2 012 138 452 1 392 21 1 413 1 16

Total PROJECT COSTS 938 530 81 260 1 019 790 9 577 829 10 406 8 117

_________________________________\a (national, provincial, local / extension services)\b (national, provincial, local / extension services)

102. It should, however, be noted that a parallel financing of €10 million from the EuropeanCommunity (EC) is being finalised; this will be a grant from the EC to the Republic of Angola. The ECgrant will build on the current AFAP design, focusing on activities related to: a) savings mobilisation(Accumulating Savings and Credit Associations (ASCAs)); b) Capacity Building; c) Nutrition; and d)Climate Change issues. The EC has promised to fast-track the approval process of the grant throughits internal procedures. This is aimed at enabling implementation commencement of the grant-fundedactivities together with the rest of the project activities. The EC and IFAD will finance a small team ofconsultants to undertake the requisite design of the grant interventions.

B. Project financing

103. The Project is to be financed by IFAD and the Government of Angola. The IFAD loan amountsto USD 9.45 million (91% of total project cost). The Government contribution is estimated at USD 0.95million (9% of total project cost) to cover actual costs, taxes and duties. As pointed out above, aparallel financing of €10 million grant from the EC will form part of the overall AFAP financing.

104. The Performance-Based Allocation (PBA) for Angola for 2013-2015 is USD 9.1 million. Afunding gap of USD 0,3 million thus exists. This is to be funded through additional internal resources,either by adjusting the 2013-2015 PBA or through the 2016-2018 PBA. Table 3 provides a summaryby components of the proposed financing plan; the table, for now, does not reflect the EC grantfunding. More details are provided in Appendix 9.


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Table 3: Proposed Financing Plan

AngolaArtisanal Fisheries and Aquaculture ProjectExpenditure Accounts by Financiers

(US$ '000)

LocalThe Government IFAD loan Total For. (Excl. Duties &

Amount % Amount % Amount % Exch. Taxes) Taxes

Investment CostsCivil Works 52 3.5 1 429 96.5 1 480 14.2 - 1 429 52Transport and Equipment

Vehicles, Boats and Motorbikes 31 20.8 116 79.2 147 1.4 87 29 31Equipment 41 10.8 338 89.2 379 3.6 111 226 41

Subtotal Transport and Equipment 71 13.6 454 86.4 526 5.1 199 255 71Technical Assistance

Audit 14 10.0 126 90.0 140 1.3 39 86 14Training, Studies, Meetings and Workshops 477 10.0 4 297 90.0 4 774 45.9 178 4 119 477Technical Assistance - Local 25 10.0 221 90.0 245 2.4 - 221 25Technical Assistance - International 41 8.0 471 92.0 512 4.9 299 172 41

Subtotal Technical Assistance 557 9.8 5 115 90.2 5 671 54.5 516 4 599 557Total Investment Costs 680 8.9 6 997 91.1 7 677 73.8 715 6 283 680Recurrent Costs

Project Staff - - 1 985 100.0 1 985 19.1 - 1 985 -IPA Staff 268 79.4 69 20.6 338 3.2 - 338 -Operation and Maintenance 41 10.0 366 90.0 406 3.9 114 251 41

Total Recurrent Costs 309 11.3 2 420 88.7 2 729 26.2 114 2 574 41Total PROJECT COSTS 989 9.5 9 417 90.5 10 406 100.0 829 8 856 721

C. Summary benefits and economic analysis

105. Project beneficiaries. In assessing the number of project beneficiaries, it is estimated thatthere would be some 15,800 households receiving services from the project with an estimatedinvestment of USD 625 per household. The number of households involved in the Project’s productiveactivities is significantly less; it is in the order of 4,300 as presented in table 3 below. With relativelylow investments for the fish farmer, a range of technology adoption rate of 10%-80% was assumed tobe realistic. As for fishers’, processors and traders some investment is required, a more conservativerange of adoption rate of 5-50% was assumed. The total number of beneficiaries active in productiveactivities by component is summarized in the table 4 below.

Table 4: Beneficiaries and adoption rates

Items Y 1 Y 2 Y 3 Y 4 Y 5 TotalAquaculture

HH interested in aquaculture 40 100 200 500 500 1 340Adoption rate of proposed technologies 10% 40% 60% 80% 80%

Family ponds (84% of total) 3 34 101 336 336 810Emerging farmer ponds (11% of total) 0.4 4.4 13.2 44.0 44.0 106(semi-) commercial ponds (5% of total) 0.2 2.0 6.0 20.0 20.0 48

Subtotal 964Fisheries

Fishers' trained 252 504 756 756 756 3 024Adoption rate of proposed technologies 5% 20% 40% 50% 50%

Canoe fisher (80% of total) 10 81 242 302 302 937Chata fisher (20% of total) 3 20 60 76 76 234

Subtotal 1 172Small enterprises

Traders and processors trained 468 936 1 404 1 404 1 404 5 616Adoption rate of proposed technologies 5% 20% 40% 50% 50%

Trader (20% of total) 5 37 112 140 140 435Processor (80% of total) 19 150 449 562 562 1 741

Subtotal 2 176Total 4 312

Project Year


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106. Project benefits. The Project activities aiming at increasing quantity and quality of fishproduced and sold would mainly consist of training of fishermen, processors and small traders in goodpractices. The project will not consider production increase through fleet expansion or bigger boats asthe results of stock assessment (to be carried out by AFAP) are not available. The main projectbenefits accruing from the above activities would include:

(i) increased fish production obtained with the introduction of fish farming andimproved fishing techniques and practices;

(ii) Post-harvest losses reduction and improved quality of fish through improvedfishing practices, processing and conservation;

(iii) increased marketed production;(iv) Improvement of hygienic standards emanating from the use of ice, as well as

improved fish salting and smoking techniques;(v) better resource management and reduction of illegal fishing practices leading, over

time, to a sustainable increase in fish catch; and(vi) a community driven development approach with financial management skills

enabling project beneficiaries to sustain project-induced income and assetincreases.

107. Results of the financial and economic analyses. A financial and economic analysis wascarried out to assess: (i) the financial viability of the interventions at the beneficiary level; and (ii) thelikelihood of adopting the proposed project interventions. The financial models including family fishfarmer, emerging fish farmer, semi-commercial fish farmer, canoe fishing, plank boat fishing andenterprise models including traditional processing and fresh fish trading (presented in Appendix 10)generally show positive financial returns for the proposed aquaculture and fishery rural economicactivities with FIRR ranging from 34% to 237%.

108. The economic analysis shows an EIRR of 12.3%. A Sensitivity analysis was undertaken toassess the impact on economic returns against changes, in output (fish price) and key input prices(ice and feed prices). The analysis shows that the Project’s main economic profitability indicators aremore sensitive to changes in the benefits than to changes in the costs. The production models aremore or less equally sensitive to a risk of +10% in production cost as to a -10% benefit decrease,resulting in a negative NPV. With a two year delay the ERR is still positive at 7.2%; the NPV will slipinto a substantial negative of 1,125 (see Appendix 10, Financial and Economic Analysis, for details).

D. Sustainability

109. The sustainability of project outcomes will be increased by the following factors and project-supported activities:

110. Government commitment. All Angola’s main policy instruments that address ruraldevelopment, poverty alleviation and food and nutrition security recognize the importance and rolethat inland fisheries and aquaculture sub-sectors play in achieving the stated policy objectives andactions. The sector represents a highly visible and under-developed response to some of thecountry’s key issues faced in the rural sector (such as joblessness, hunger and poverty). Governmentcommitment is likely to continue, outcomes sustained and, where relevant, built on and replicatedelsewhere.

111. Precautionary approach to fisheries development. As described in the risk section, in lightof the absence of data on the status of fish stocks, units of production and existing fishing pressure,project design has adopted a cautious approach to promoting development in the sub-sector. Thisincludes providing a priori support for a fisheries census, fisheries stock assessment, development ofcommunity-based fisheries management plans complemented with relevant awareness-raising andtraining activities. Project support for production activities that will likely result in increased pressureon fish stocks will be accompanied by a monitoring plan that will ensure that stocks will be harvestedat sustainable levels. These are basic principles of sustainable fisheries management whosereplication elsewhere in Angola will be promoted through the project’s Knowledge Management (KM)activities supported in part by policy dialogue (see below).

112. Policy dialogue. At present there is no law specific to inland fisheries in Angola. In theaquaculture sub-sector, there only exists outdated drafts of a law and its implementing regulations.Promoting dialogue through the Project represents a significant opportunity to address selected policyissues identified as risks affecting the sector and institutionalize the basic concepts of sustainable


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fisheries and aquaculture management in the country, informed by the results of the Project that inturn, could guide future interventions.

113. Institutional partnering. The Project’s institutional strategy is to involve all the players onwhich the achievement of the project objective and outcomes depend. This includes: (i) the Ministry ofFisheries and subordinated institutions (IPA, INIP, INAIP and SNFP) at the national level; (ii) thefishery directorates in the four participating provinces at the regional level, (iii) municipal andcommunal administrations and leaders at the local level, (iv) fishers, processors and small traders; (v)small entrepreneurs, (vi) service providers, and (vii) private contractors. Building widespread supportand collaboration for the Project among so many stakeholders is likely to continue to pay dividendsafter the Project is closed and address, in part, the risk of local authorities failing to sustainablysupport the local infrastructure Operation and Maintenance costs, including the sustainable operationof the hatchery and milling station.

114. Institutional strengthening. The expected key institutional strengthening achievements thatare likely to contribute to sustaining Project outcomes are the following:

IPA has developed the capacity to promote the activities and outputs that would allow theachievement of the project development objective in targeted fishing communities andsocial groups in a continued way after the end of the project;

Other institutions from the Fisheries sector, public and private, have increased theircapacity to provide continued support to development initiatives in the artisanal fisheriessubsector;

Local government agencies at provincial, municipal and communal levels are better able tointegrate the priorities of the fishing communities in programmes of investment aiming atpoverty alleviation; and

The increased capacity of NGOs and other service providers involved in theimplementation of development actions, especially in the domain of social communitydevelopment, will be better able to provide continued assistance to the artisanal fisheriessubsector.

115. Community empowerment. The objective of Outputs 1.2 and 2.2 will serve to strengthen localcommunities through organization of local fisher groups, awareness-raising on social issues of criticalimportance to the whole community and capacity building. Organized, trained and more aware groupsin the fishing communities are better able to intervene in defence of their members and the communityon subjects of social and economic interest. A key instrument to ensure these benefits are retained inthe future is support for the preparation of community development plans to be formally submitted tothe Municipal Government. Target communities will be linked with municipal planning processes in thecontext of CACSs and their plans considered within municipal annual plans; a process that isexpected to continue after project closure.

116. Knowledge management. The Project´s institutional arrangements, together with the M&Esystem, provide the opportunity to generate and disseminate experiences and lessons-learned toother national institutions in Angola through IPA’s participation in national councils and other high-level fora on rural livelihoods and rural development, food security, nutrition and poverty. As theProject gains visibility and generates on-the-ground results, given national interest in improving thelives of the country’s rural poor, there will be a growing number of opportunities to promote thereplication of the approach through participation in other national, regional and international level fora,contributing to the existing knowledge base and planning and policy discussions.

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Appendix 1: Country and rural context background

General Context

1. The Republic of Angola is located in South-western Africa and bordered by the AtlanticOcean to the west, Namibia to the south and the Democratic Republic of the Congo and Zambia tothe north and east, respectively. The country covers an area of 1,247,000 km2 and is the third largestcountry in sub-Saharan Africa. The population is estimated to range between 16 and 18 million people(no population census has been conducted since 1970) of whom some 41% are thought to live inrural areas. Angola is one of Africa’s most resource rich countries representing sub-Saharan Africa’ssecond largest oil producer and the world’s fourth largest producer (in value) of diamonds. Thecountry is also fortunate to possess a wealth of other natural resources including minerals, water,agriculture, forestry and fisheries.

2. In 1975, after 14 years of fighting, Angola became independent from Portugalsubsequent to which it was immediately engulfed in one of Africa’s most prolonged civil conflictsbetween the Popular Movement for the Liberation of Angola (MPLA) and the National Union for theTotal Independence of Angola (UNITA). Peace seemed imminent in 1992 when national electionswere held, but fighting was renewed when the National Union rejected the election results. A newpeace agreement, the Lusaka Protocol, was signed in 1994, but war resumed in 1998. In April 2002, acease-fire was called following the death of the leader of UNITA, Jonas Savimbi, and on 21 November2002, the Government and former rebels signed a peace agreement that definitively ended theconflict. The political process appears to have stabilized since 2002 and in the most recent legislativeelection President dos Santos’ ruling party won over 72% of the vote.

3. After almost four decades of war, much of the country’s economy had collapsed,infrastructure destroyed, institutions weakened or no longer functioning, society polarized, anestimated 4 million people displaced, poverty rampant and the newly created political process fragile.Over the last 13 years since signing the peace accords, government together with its national andinternational partners, have made substantial progress in re-establishing the foundation needed toaddress many of these problems. This resulted in the development and implementation of programsaimed at restoring order and security, revitalizing the economy, restoration of basic social servicesand the rehabilitation of basic infrastructure.

4. Funding for these programs came from a mixture of government and internationalfinance. This was facilitated by the rapid economic expansion experienced in the country over theperiod 2003 to 2008 supported primarily by high global oil prices and increased oil production with anaverage growth rate in GDP of some 17%, at the time one of the three fastest growing economies inthe world. Following sharp drops in GDP due to the global economic crisis of 2008 – 2010, thecountry experienced a return to growth driven primarily by an increase in price of oil as well as apublic investment program targeting non-petroleum sectors estimated at 8.2 and 7.1% for the years2012 and 2013, respectively. Growth in GDP over the next 5 years is projected to range between 6.4and 6.9%. As share of GDP, oil and gas has declined from 57.9 to 43% in 2011

5. Despite the increasingly strong growth in recent years in the non-oil sectors due to thepublic investment program, oil still represents 95% of all exports and accounts for 79.5% of fiscalrevenues. In contrast, while the non-oil sector represents 42% of GDP it only contributes to 20.5% ofthe country’s fiscal revenues. Excessive dependency on oil tax revenues leaves the country prone tofiscal shocks as experienced over the period 2008 - 2010. Inflation while falling in recent years andreaching a multi-decade low of 8.9% in January 2013 is nevertheless, expected to remain in the highsingle digits over the next 5 years. The continued dependency on food imports together with risingglobal food prices may contribute to higher rates.

6. Despite these efforts many of the aforementioned problems remain. The road network isin extremely poor condition, the rail network barely functions, electricity distribution is limited andunreliable and water and sanitation services are poor to non-existent particularly in much of thecountry’s poorer rural areas. Institutional capacity remains low in particular outside of urban areaswhich impede the achievement of many of the government’s social objectives. Highly skilled staff isestimated to represent less than 4% of the Public Administration while 73% are thought to becomposed of auxiliaries (e.g., drivers, cleaners, etc.). Decentralization is a priority for government

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however participation is limited due to the weaknesses of local government and civil societyorganizations. A major constraint is the lack of data (the first and only housing and population censusstems from 1970). Due to the low institutional capacity government has favoured a partnering processthat includes NGOs and local based partners such as community-based and faith-basedorganizations.

Agricultural and Fisheries Sectors

7. Prior to independence in 1975, Angola was self-sufficient in all key food crops (exceptwheat) and was an exporter of cash crops, in particular coffee and sugar. The war and lack ofinvestment severely impacted the sector and the country has been dependent on food imports andfood aid since 1990. A mere 10% of the arable land in the country is currently under cultivation. Thecombined contribution of crops, livestock, forestry and fisheries to GDP between 2001 and 2003 wasabout 8%; a figure that increased to 12% by 2011 primarily due to the public investment programs.

8. Some two-thirds of the population depends on agriculture for food, income andemployment, with women providing most of the labour force. It is estimated that 80% of farmers aresmallholders, generally producing little or no surplus, with very low productivity. Lack of access toagricultural inputs is a major obstacle to production. Less than 30% of the country’s arable land isthought to be in production and per-acre productivity is one of the lowest in sub-Saharan Africa.

9. Government adoption of a policy to diversify the economy and mobilize investment insocial and economic sectors resulted in an increase in agriculture as a contribution to GNP from 6.8%in 2008 to 12% by 2011. While this growth in the sector is thought to have contributed to a reductionin hunger it is believed to have had a lesser impact on poverty reduction. Moreover, most of therecovery in the sector has had more to do with expansion of the cultivation of arable land thanproductivity. Furthermore, despite the fact that agriculture has been identified as a priority sector inthe poverty reduction strategy budget allocations for the agricultural sector remain low. For 2004, theallocation to cover the recurrent costs of the Ministry of Agriculture and Rural Development was0.64% of the total public-sector budget, while direct allocations to the ministry through the publicinvestment programme was 1.98% of the total. These funds were mostly used to cover salaries,precluding most development activities planned for the provinces.

10. Fish currently represent the main source of animal protein in Angola with an estimatedannual per capita consumption of 18.7 kg. However, marine fishing along the 1,650 km of coastlinehas declined dramatically, a trend attributed to large-scale fishing by foreign fleets and weak capacityof the authorities to survey and intercept illegal fishing and enforce quota limits. Marine fisheriesnevertheless are thought to have a good potential for private development with prospects for bothdomestic and external markets.

11. The market supply of inland fish declined to very low levels during the war, although ithas been estimated that supply is recovering rapidly because of the large numbers of peoplereturning to rural areas since April 2002. There are currently an estimated 25,000 artisanal fishers,who use more than 5,000 small canoes or boats and the sub-sector is thought to furnish some 80%direct and indirect employment. The majority of these fishers practice subsistence by hand or use oflow technology with low levels of capture. Inland fisheries and small-scale fish farming represent avast and largely untapped potential opportunity to support local economic development in terms ofgeneration of employment, reduction of food insecurity and the fight against poverty.

12. Similar to other sectors, the affects of war contributed to nearly the total destruction ofmeans of production (infrastructure, research, training of staff, etc.). After the signing of the peaceaccords government launched a large investment program for the rehabilitation of agriculture andfishery infrastructure (research centers, training, fishing equipment, etc.) largely paid for by oilrevenues. Government support has been supplemented with international financed fishery projectsincluding the Artisanal Fisheries Development and Fisheries Sector Support Projects (ADB), NorthernRegional Fishing Community Development Program (IFAD) and Post-harvest Support to NorthwestArtisanal Inland Fisheries (FAO). The government’s request to IFAD for a fisheries projectdemonstrates the importance it attaches to the sector, and its conviction that fisheries is a suitableactivity for poverty reduction.

13. The strategies adopted by the Angolan Government for the development of the fisherysector aim to: (i) organize and modernize the semi-industrial and industrial fishing fleet and fish


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processing industries; (ii) support sustainable exploitation of the continental and maritime artisanalfishery; (iii) develop inland and marine and inland aquaculture; (iv) create infrastructure for fishlandings and conservation; (v) improve the fish distribution chain for frozen, salted and dried fish; and(vi) improve the fish quality assurance and inspection system.

Poverty

14. In the latest figures available (2012) Angola ranked 148th out of 186 countries on theHuman Development Index (HDI). Despite recent progress and its rise in HDI rankings (in 2004Angola was ranked 166 among the 177 countries on the HDI), poverty remains prevalent throughoutmuch of the country. Sixty-eight percent of the population is estimated to be living below the povertyline and 15% of households are living in extreme poverty. Poverty is more prevalent in rural areaswhere 94% of households are categorized as poor. Other indicators reflecting current conditionsinclude: (i) 38% of the population does not have access to safe water sources; (ii) only some 30% ofthe population has access to government health facilities; (iii) life expectancy at birth is estimated at47 years (2010), among the lowest in the world; (iv) despite major efforts at educational reform some75% of teachers never received any relevant training; (v) only 54% of enrolled children complete theprimary level; and (vi) Angola’s rank of 106 (out of 134 countries) in the gender index gap (2009).

Current Policy Framework

15. Macroeconomic. The key policy outlined in Angola’s National Development Plan (NDP)2013 – 2017 is the promotion of economic growth and increase in employment. To implement thispolicy public investment will continue to be a major driver. If successful, government estimates that asa percentage of GDP, the petroleum sector will decline from 45% to 27% by 2017. More specifically,government envisions the intensification of economic diversification supported through investment inrehabilitation and development of new infrastructure and development of macroeconomic policies tostimulate private sector investment.

16. One of the Plan’s main policies is the Modernization of Administration and PublicManagement. This policy is supported by a number of programs including: (i) the Integrated MunicipalRural Development and Fight against Poverty Program (PMIDRCP); (ii) the Municipalisation of HealthServices; and (iii) Conselhos de Auscultação e Concertação Social (CACSs). In addition, the NDPincludes measures that reinforce the integrated vision of development, especially the Requalificationof Rural Villages (Programa de Requalificação de Aldeias Rurais). This policy and supportingprograms will lead to the creation of a more efficient and flexible public institutional structure thatincludes the restructuration of the central and local administrative bodies for purposes ofrationalization of resources and increased efficiency. A parallel program, Promotion ofEntrepreneurism and Development of the National Private Sector proposes a number of actions thatincludes the provision of incentives to grow the role of the private sector in Angola’s economy.

17. Poverty. Government is fighting poverty on various fronts including: (i) development ofthe 2005 Anti-poverty Strategy (ECP); (ii) the 2009 National Strategy for Food and Nutrition Security(ENSAN); (iii) inclusion of poverty alleviation activities in the national annual plan, covering varioussocial and economic sectors; and (iv) inclusion of resources in each municipal budget forimplementation of annual local plans to combat poverty, including rural development. Governmentcontinues to allocate more than 30% of its budget to improving social conditions; a figure that isprojected to increase over the next five years.

18. The main goal set out in the ECP is to cut the country’s poverty level in half by 2015 andto consolidate peace and national unity through the sustained improvement of the living standards ofall Angolans. The main priorities identified in the ECP are: (i) the reconstruction of infrastructure; (ii)increased access to education, health, and other basic services; and (iii) decentralization ofgovernance structures. The ECP highlights rural development with a focus on the improvement offood security and the revitalization of the rural economy. Key proposed actions are the: (i)strengthening of the production capacity of the traditional sector, particularly food crops and fisheries;(ii) re-launching of rural commerce; (iii) sustainable development of natural resources; and (iv)reorganization of the legal framework and public institutions. Priority actions are to be guided by thefollowing basic principles: (i) a focus on smallholders; (ii) the importance of community participation;(iii) the concentration of planning, implementation and monitoring at the municipal level; (iv)complementary activities with donors, the private sector and NGOs; (v) specific targeting of women,including access to land; and (vi) HIV/AIDS should be treated as a cross-cutting concern. In the

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Program the development of marine and continental fish products are recognized as a key componentof the sector. One line of action is the strengthening of production capacity of the continental /artisanalfish production.

19. Food security and rural development. The goal set out by ENSAN is to ensure that allAngolans will have at all times physical and economic access to food of adequate quantities andvariety to permit them to contribute to the human, economic and social development of the country.The main policy priorities are to: (i) increase and diversify agriculture and fish production sustainableto improve the well being of the population; (ii) improve the conditions of access to food; (iii) diminishthe levels of malnutrition of the population; and (iv) guarantee and secure the sanitary conditions andthe quality of food and potable water. The Strategy outlines the following objectives for the sector: (i)sustainable increase in the development of the resources; (ii) improved well-being of the populationbased on increases of harvesting and cultivation of the resource achieved through greaterparticipation of the artisanal fishing fleet aided through supportive policies and public investment toinclude restoration of existing and construction of new infrastructure; and (iii) creation andmaintenance of conservation, distribution and commercialization fish networks. Both of these policydocuments, their objectives, priorities and actions, are reflected in the NDP 2013 – 2017.

20. Agriculture sector. The National Development Plan (NDP) policy for the agriculturesector is to promote the integrated and sustainable development of the agrarian sector building on itspotential and competitiveness to ensure food security. Key priorities include: (i) reorientation of familyproduction towards the market and launching the entrepreneurial sector; (ii) rehabilitation andexpansion of infrastructure to support sector growth; and (iii) a reduction on reliance on imports anddiversification in the sector.

21. Fisheries sector. The Plan’s stated policy in support of the fisheries sector is thepromotion of increased competitiveness and development of industrial and artisanal sub-sectors in asustainable fashion to contribute to job growth and to combat hunger and poverty and guarantee foodand nutritional security. Key priorities include: (i) achieving an increase in sustainable production, (ii)investment in infrastructure and conservation of fish products and (iii) development of aquaculture.

22. Climate change. Angola’s policy on climate change is set out in the country’s NationalAdaptation Programme of Action (NAPA) in 2011. The NAPA identifies agriculture and fisheries as themost vulnerable national sectors and flooding and water induced soil erosion as major threats. TheNAPA process identified 30 adaptation actions and options for the identified threats that were thenranked based on potential benefits and costs. The forth priority on that list is to “study the vulnerabilityof the fisheries sector to CC and current modifications.” There are a number of additional identifiedpriority action and options relevant to the fisheries and aquaculture sub-sectors.10

Donor Activity

23. Donor activity in Angola has shifted in the last few years characterized by an increasedpresence in cross-sectoral areas such as decentralization, private sector development, regionalintegration and the environment. The major donors in Angola are the European Union, USAID, AfricanDevelopment Bank, World Bank, Italy and Norway. These donors focus on Health, Agriculture/Ruraldevelopment, Water, Infrastructure, Civil Society, Fishery Research and Human Rights. While there isno formal donor coordination mechanism, an informal donor network exists, through a thematicworking group that meets as and when needed to discuss different sectors (such as Social, Energy,Transport).

24. The United Nations Development Assistance Framework (UNDAF) for the period 2009 –2013 was based on six Government National Priorities outlined in its National Medium-Term Plan(2009 – 2013) including: (iii) promote human development and social well-being and (v) promote theequitable development of the national territory.

10 These are: (i) create an early warning system for flooding and storms; (ii) climate monitoring and data management system;(iii) map areas of erosion risk; (iv) study impacts of sedimentation and siltation rates on coastal processes; (v) nationalinstitutional mechanism for adaptation planning and mainstreaming; (vi) implement water resources integrated management;construct flood protection barriers along major rivers; and (vii) construct sea level protection structures.


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25. AfDB priorities set out in its Country Strategy Paper for the period 2011 – 2015 supportsthe Government’s strategy that aims to achieve economic diversification through non-oil private sectorled growth which creates employment and promotes poverty reduction through supporting activitiesacross two pillars: (i) stimulus to the competitiveness of the economy and (ii) support to economicinfrastructure development. With respect to the former the Bank will support: (i) entrepreneurship andthe development of SMEs, (ii) planning and management of the government’s Public InvestmentProgram (PIP) and (iii) assist in strengthening government capacity to develop, launch and managepublic-private partnership (PPP). With respect to the second pillar, the ADB will support (iv)infrastructure development and (v) infrastructure maintenance.

26. WB new CAS for 2013 – 2016 is scheduled to be available in October.


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ATTACHMENT 1: COUNTRY DATA

Republic of Angola

Land area (km2 thousand) 2011 1,247

Total population (millions) 2011 19.6

Pop. density (people per km2) 2011 15.7

Local currency Angolan Kwanza (AON)

Social IndicatorsPopulation growth (annual %) 2011 2.8

Crude birth rate (per 1,000 people) 2011 40.8

Crude death rate (per 1,000 people) 2011 14.0

Infant mortality rate (per 1,000 live births)98.4

Life expectancy at birth (years) 2011 51.1

EducationSchool enrolment, primary (% gross) 2010 124.5

Adult illiteracy rate (% age 15 and above) 2010 70.1

NutritionDaily calorie supply per capita 2007 1,973

Malnutrition prevalence, weight for age (% of children under 5) 2007 15.6

HealthHealth expenditure, total (as % of GDP) 2011 3.49

Physicians (per 100,000 people) 2007 8.0

Population using improved water sources (%) 2010 51.0

Population using adequate sanitationfacilities (%) 2010 58.0

Agriculture and FoodFood imports (% of merchandise imports) NA

Fertilizer consumption (kg per ha of arable land) 2009 1.076Food production index 2011 188.2

Cereal yield (kg per ha) 2011 694.4

Land Use

Arable land as % of land area 2009 3.2

Forest area as % of total land area 2010 46.9

Agricultural irrigated land as % of total agricultural land NA

_____________________________________


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GNI per capita (USD) 2010 3,940

GDP per capita growth (annual%) 2011 3.92

Inflation, consumer prices (annual %)

Exchange rate: USD 1 =

Economic Indicators

GDP (USD million) 2011 12,358.7

GDP growth (annual %) 2011 3.92

2000 3.01

2011 3.92

Sectoral distribution of GDP

% agriculture 2011 9.29

% industry 2011 62.12

% manufacturing 2011 5.97

% services 2011 28.59

Consumption

General government final consumption expenditure (as % of GDP) 2011 19.51

Household final consumption expenditure (as % of GDP) 2011 47.41Gross domestic savings (as % of GDP) 2011 33.08

Balance of Payments (USD million)Merchandise exports 2011 22,000Merchandise imports2011 65,500

Balance of merchandise trade – 43,500

Current account balances (USD million) 2011 13,084.7Foreign direct investment, net 2011 5,116.4

Government Finance

Cash surplus/deficit (as % of GDP) NA

Total expense (% of GDP) NA

Present value of external debt (as % of GNI) 2011 22.79

Total debt service (% of GNI) 2011 3.11

Lending interest rate (%) 2011 18.76

Deposit interest rate (%) 2011 6.09

The Republic of AngolaArtisanal Fisheries and Aquaculture ProjectDetailed design reportAppendix 2: Poverty, targeting and gender

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Appendix 2: Poverty, Gender and Targeting

Poverty

1. Poverty. The Central Northern Region including the Provinces of Bengo, North Kwanza andMalanje display the second highest levels of poverty in the country. Together these provinces areestimated to hold 8.5% of the country´s population, with high concentrations of people along the mainroads and along the River Kwanza. The following indicators highlight that important deprivations stilllock rural populations in multidimensional poverty in rural areas as only 26.3% of households in thelower socio-economic quintile have access to education, 35.5% have access to sanitation, 24% of thepopulation in these areas is between 0 – 2 km walking distance from a health facility and maternalmortality continues being alarmingly high. Angola thus shows mixed performance to date in relation tothe achievement of the 2015 Millennium Development Goals.

2. Government Poverty Programme. The Government of Angola has elaborated strategies(Estratégia de Combate à Pobreza) and programmes for poverty alleviation (Programa MunicipalIntegrado de Desenvolvimento Rural e Combate à Pobreza) allocating USD 2 million per year to eachMunicipality in the country. The health sector was the first to decentralize management to themunicipal level transferring another USD 2 million to each Municipality per year through the Programade Municipalização dos Serviços de Saúde.

Women and youth

3. Women. While efforts have been made to reach gender parity in net enrolment for primaryschooling, girls continue to have less access to secondary education. Illiteracy rates are substantiallyhigher in women in rural areas (73.6%) than among men (34.6%) Moreover, limited access to formalvocational training and higher education opportunities strongly condition women´s reduced incomelevels and strong presence in subsistence agriculture and informal trade. Women and men participatein unequal terms in the management and control over assets and in decision-making, both athousehold and community level. Over 23% of households are women headed households. Angola issignatory to all mayor international and regional conventions and protocols relevant for theadvancement of women´s rights and elimination of all types of violence against women. The Ministryof Family Affairs and for the Promotion of Women (MINFAMU) developed the draft National GenderPolicy and Implementation Strategy expected to be approved in 2013. Despite the approval of theFamily Law and the Law Criminalizing Domestic Violence the use of customary law strongly favouringmen, is still widespread.

4. Youth. The Angolan Government defines youth as people aged 15 to 35. Youth still representjust under a third of all citizens in the country (32.4%). Migration levels among youth peaks at 24.5%for the age group between 25 and 35, but is still lower than adults over 35. Youth in rural areas arefaced with the dual challenge of wanting to explore alternative livelihood opportunities to subsistencefarming or small-scale fishing while at the same time having little formal training to equip them to facethe labour market. Schooling completion rates decrease after primary level and progressively dropalong the education pathway. Poverty is lower among the 15 – 35 year old range group than anyother age group. Most households are youth headed households, growing in size progressively withage. It is more frequent for youth aged 20 – 24 to have more than one sexual partner, placing thisparticular group, their partners and their unborn children at greater risk of HIV. This same groupreported to have the highest level of knowledge on HIV/AIDS.

5. HIV/AIDS. HIV prevalence in 2011 was 5.7%. Migration of youth and adults with seasonalreturns to their home villages, seasonal work sought by youth, high traffic of women traders sellingdried fish and agricultural surplus, poverty, low knowledge levels of the basic facts of HIVtransmission and prevention, difficult access to condoms, and extremely limited preventioninterventions place the populations of the project target area at serious risk of HIV transmission,especially women and youth.

Rural livelihoods in the project area

6. Artisanal fisheries. Lakes are abundant in the western side of the project area along theKwanza River, where fishing is an essential component of local livelihoods and involves aconsiderable proportion of the community and seasonal workers. Fishing with boats or canoes is done


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exclusively by men, while women fish using more rudimentary means with the primary purpose ofproviding food for the family. Women also process fish locally (salting and smoking) and sell theprocessed fish in complex various trade networks between their communities and the capital Luanda.Additional activities such as vegetal coal production, and crafts such as boat building and carvingcanoes out of trees are also other livelihood activities practised in these lake communities. Simplefishing techniques are used in the eastern side of the project area in neighbouring streams tocomplement whenever possible agricultural activity.

7. Agriculture. Small-scale subsistence agriculture is practiced in both sides of the project area.The basis of most of the local livelihoods is agriculture and small-scale animal rearing (small livestock,swine, poultry). Agricultural yields are strongly conditioned by the varying soil conditions in the projectarea, and for most people by the dependence on rain and on the household´s labour force. Duringproject preparation, no household level food reserves were observed in the communities beyond thecassava planted in the fields, which could keep households from hunger in the absence of any otherfood source. Agricultural surplus is sold or traded for basic consumption goods, while somecommunities also grow vegetables and fruit crops in small-scale to be sold in nearby road or formalmarkets. Associations and cooperatives are known to exist throughout the project area, either carriedover from post-independence times or having re-emerged as a means to access support madeavailable by fisheries and agriculture Government support programmes. Access to land in the projectarea does not appear to be problematic for the development of local livelihood activities, except inareas where traditional land allocated to a given Soba (traditional leader) are already under use andno additional land is available for the expansion of household livelihood activities. Landlessness, asknown in other parts of the world where land is privately owned, is not an issue at present in theproject area.

Project targeting

8. A step-by-step selection process was used to determine the geographic areas of projectintervention and the final target groups at community level, namely:

I. Geographical, technical, demographic and livelihoods analysis of the suggested andneighbouring Provinces determined the Municipalities and Communes with the highestpotential for the project success;

II. Definition of selection and ranking criteria to determine the specific communities where theproject will be implemented. The criteria should be revised and applied once required datahas been obtained from the Government;

III. Socio-economic characterization of communities visited during the design missionaccording to livelihoods, socio-economic differences and levels of vulnerability, and theirproportional weight in communities; and

IV. Definition of project target groups at community level.

9. Socio-economic characterization of communities the project area. Three broad groupswere identified at community level defined by their livelihood strategies, socioeconomic conditions andapparent degrees of vulnerability to food insecurity. These broad groups do not necessarily reflect theexact reality of each target community, rather they offer a general understanding of the logic thatdrives livelihood activities and the socio-economic dynamics in target communities. Differences willcertainly be observed from community to community. The three groups identified can be defined as:resilient households, vulnerable middle class and very vulnerable assetless labourers.

10. Resilient households: These are households that own large productive assets and have strongsocial capital. Given the importance of fishing in the livelihoods of a large portion of the project area,having a boat (this term encompasses a local boat called chata, wooden, hand-carved or tree barkcanoes) means deriving the same income as those working on it but without having to dedicate timeand physical effort to actual fishing. Rather the effort is dedicated to fish processing and trade. It is notuncommon for boat owners to have more than one boat. At times they team up with others that owncomplementary fishing assets (nets) or pay one or two fishermen in exchange for an equal division ofthe catch. In other instances boat owners actually rent out their boats to fishermen for a fixed price.Boat owners do not generally fish themselves. Individuals in this socio-economic group are generally,but not exclusively over 35; time has allowed them to save and invest or to build the social capital toobtain personal loans from relatives or others or to develop the linkages and credibility that facilitateeligibility for inputs in development interventions. Households in this stratum are often engaged in


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agriculture, especially if there is access to irrigation or mechanized ploughing. Linkages with thenearest city or even with the capital city Luanda are strong allowing the members of this group tosend their children to school. Children of this group do not generally return to the community whenthey group up. Once a certain age is reached boat owning households at times opt to sell their boatsand move out fishing altogether and dedicate strictly to agriculture, as a means to feed the family inthe community and help the network of relatives in the city.

11. Households in this socio-economic group in the community visited in Malanje share with theirinland fisheries peers the ownership of better productive assets and social capital. They appear tohave slightly more (albeit still rather modest) material assets in their homes, owning slightly morelivestock, swine and poultry than other members of the community. These families are generallynumerous in size, are prominent members of associations or cooperatives and appear to be the onesable exploring the largest shared and individual plots of land.

12. Vulnerable households: Households that do not have large productive assets and have limitedsocial capital. Households in this group constitute the vast majority of the population. Strong familyand community linkages do not result in access to credit or to opportunities to own a boat. Hence,these families fish in the boats owned by others, although they generally all have nets and other smallfishing equipment. They can also pay others who have no assets at all to fish with them. Thesehouseholds are also involved in fish processing as the share of the catch is equally divided betweencrewmembers and the boat owner. People in this group see boat ownership as the only possible wayto move forward in life in the village as there are no other active business opportunities in thecommunity at present. Women headed households are in this group given their direct or indirectinvolvement in processing fish (from her sister´s share as boat owner, for example) or because oflooking after relative´s children while she travels to markets to sell her processed fish (and possiblyher husband´s). Agriculture plays a crucial role in the livelihoods of these families and in meetingminimal food consumption needs. Members of this group can use less productive fishing techniquesto get fish when none is available to feed their families (line, mesh fishing on the shores and throughthe use of traditional fish traps). It is also common for men in these households to hunt for wild meatin nearby forests. It appears that the majority of children in these families grow up in these villages,even if there are no schools within easy reach, constituting many of the youth that today depend onfishing as a main means of survival in the larger inland fishing communities visited. The combinationof livelihood activities is an intrinsic coping mechanism to deal with shock. However, their dependenceon their intense labour power, and competing priorities render them more vulnerable to food insecurityand to deeper levels of poverty than the privileged few, more so when their ability to work is affected.

13. Very vulnerable assetless labourers: Households that work for others. What these householdsappear to have in common is that they practice no or very limited agriculture and have rudimentary orno fishing equipment at all. This minority group encompasses seasonal workers, recently settledhouseholds, those who choose to move away from the day-to-day commitment of agriculture, work forthose in the two groups described above and even opt for other activities including vegetable coalproduction and hunting for wild meat. Some elderly people appear also to be in this group. Thedependency of these households on others places them in a situation of little bargaining power andfierce competition with others who have essential small fishing equipment in communities wherelabourers are not scarce. These households are dependent on relatives or other communitymembers´ charity or in acquiring debt when they are unable to work. Households in this group weredescribed as practically having no material assets and living in the deepest situations of poverty andhave the greatest probability of being food insecure and thus suffering from worst health andnutritional problems.

14. No consistent correlations were found across communities between origin or type of household(female or male headed household) and socio-economic situation. The situation of women headedhouseholds needs to be better understood through a tailored qualitative study to be conducted at theonset of the project.

15. Project target groups: The design mission revealed that common and seriousmultidimensional challenges and common technical and market challenges are faced by the threesocio-economic groups identified at community level, albeit in different degrees. The project will thusimplement key community level and other targeted interventions to address the specific needs of eachgroup according to their ability to sustain improvements. For this reason it was decided that theproject´s target groups will in fact be the three socio-economic groups.


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Project Social Approach

16. The overall development goal of the project will be to improve local livelihoods as a means ofimproving household food security and nutrition in inland fishing and fish-farming communities in theproject area. Priorities include the sustainable management of fishing and other natural resources, thereduction of post-capture losses and improving access to existing and new markets. Aquaculture hasan important unexplored potential in the project area from a technical and social perspective. Inaddition communities which depend on agriculture appear to have an untapped potential to developsmall-scale local business activities. Notwithstanding improving overall poverty through improvedaccess to social services and thus improving health, child and adult education, functional skills andparticipation in local planning need to be tackled to support the sustainable development of locallivelihood strategies. In this context, the project will adopt a four-prong social approach:

17. Equity targeting: The project will seek to introduce relevant innovations and skill buildinginterventions and offer products / services that meet the needs and capacities of the different socialgroups, age groups, men and women. Beneficiaries will have to meet minimum pre-defined criteria tobe eligible for targeted interventions that include the provision of material inputs and receive relatedsupport services from the project. These interventions will be complemented by others available to theentire community. Such an approach will allow each participant to participate according to his/her ownneeds and capacities and progress at his/her own rate. All project activities were screened during thedesign phase to ensure no barriers limit the access of intended target groups to the enjoyment ofopportunities.

18. Promotion of integrated community development: A service provider will be contracted tosupport individual communities over the course of three years with pre-defined curriculumcomponents. Municipal Governments will also be targeted as relevant, to support local capacity toassume recently assigned decentralized management roles in coordination with local communities.Most activities, unless otherwise specified, will include all target groups on equal grounds. The topicto be covered in this community development agenda being:

HIV/AIDS: Awareness-raising on modes of transmission, risky behaviours, prevention,opportunistic infections; clinical HIV services, existing support groups and other resources;

Awareness-raising on climate change and sustainable use of the resource base: Raisingawareness on climate change and its manifestations. Assess factors of vulnerability andeffects on the natural resource base and local livelihoods and identify coping andmitigation measures;

Raising awareness on the danger of mines: Angola still faces the hidden legacy of war:mines. Explanation on types of mines, how to avoid them and recognize them; how to actin the event of suspected presence of a mine;

Gender: Introduction of the concept of gender to communities in a non-threatening way,facilitating a joint analysis of the gendered differences in the division of labour, control overhousehold and communal assets, decision-making; assessment of the consequences bothat the household and community level of gender power imbalances and measures toimprove the situation;

Food security: Raising the awareness of local communities on the need to ensure that alinkage is created between food availability, access and consumption in light of expectedlivelihood improvements. Encourage the strengthening of household food stocks. Linkageswill be created with agricultural extension services where these are present. The projectwill promote small vegetable gardens, as possible, linking with farmer demonstrationschools where these exist;

Nutrition education1: Activities to be implemented by the service provider will includeparticipatory assessments of critical nutritional problems at the community level especially

1 A study on local food consumption patterns, food taboos, weaning practices and local cooking preferences will be conductedat the start of the project to identify the greatest needs in terms of nutrition household improvements in the project area;suggest key ways of overcoming critical needs with local produce available to rural vulnerable and very vulnerable households,and recommend key messages to be transmitted to target rural communities and their respective contents. The results of thestudy will be presented to the Project and key Government, donors and other stakeholders in Luanda for validation and tomobilize efforts in joining similar programmes.


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for children, transmission of basic nutrition concepts, facilitating the understanding of keynutritional problems (as per findings highlighted in the study), the discussion of foodtaboos; the identification of food that is available or can be easily produced by localhouseholds to address main nutritional challenges. Local cooking demonstrations will takeplace at community level, with the view of creating a small network of nutrition educatorsthat can then work with other women at community level with a special emphasis onpromoting key foodstuff of high nutritional value;

Local integrated planning, management and monitoring: The service provider will workwith communities in assessing local development priorities, identifying which problems canbe addressed at community level through community efforts or with other players. Themain areas requiring large investments on infrastructure or services under Governmentresponsibility will be included in the community development plan to be formally submittedto the Municipal Government. Target communities will be linked with Municipal planningprocesses in the context of CACSs and their plans considered within the broaderMunicipal yearly plans. This support will aim to facilitate areas of strategic integratedintervention with funding available to the Municipalities for poverty alleviation and forhealth sector investments; and

Supporting entrepreneurship: The lack of capital and capacities to develop profitablesmall-scale business opportunities at the community level are some of the elementsconstraining the development of complementary livelihood activities and limiting the scopeof current livelihood activities. The service provider will facilitate the adoption of improvedsavings and credit systems based on local savings practices but with additional elementsthat will render savings more attractive and profitable for participants. The project will alsosupport the development of basic business skills among community candidates thatpresent small-scale business proposals to be initiated / funded with the returns from thesavings and credit groups.

19. Functional literacy: Given the high levels of illiteracy in the project area linkages will also becreated with state or other institutions capable of training community members as trainers for basicfunctional literacy. These community literacy trainers will receive a stipend from the Project and on-going support or refresher training from the training institution.

20. Participatory planning, monitoring and evaluation: All project activities will be carried outthrough the joint and coordinated efforts of IPA project staff, community facilitators (from the serviceprovider), functional literacy trainers and other stakeholders at the community level. All activities willbe jointly planned and regularly monitored (possibly quarterly) with communities against targets andexpected results. Annual participatory M&E and planning sessions will take place at the communitylevel with the presence of all project players at that level. These will be followed by higher-levelmeetings (possibly at the Municipal level), with representatives from different communities, keyGovernment officials, IPA representatives and the participation of project leadership. The inputs ofthese participatory reporting and planning meetings will feed into the project planning cycle.

21. Both IPA and service providers will receive training in equity and gender programming,community development approaches and HIV/AIDS. All social interventions described herein will bemanaged and supervised by a Community Development Officer within the Project Coordination Unit(PCU). Table 1 below illustrates the project´s targeting strategy (darker shading denotes increasedfocus on this group).


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Table 1: Summary of Activities per Target Group

Areas of Activity ResilientHouseholds

VulnerableHouseholds

Very VulnerableAssetlessLabourers

Fisheries extension servicesAquaculture extension servicesFunctional literacy skills developmentCommunity development activitiesInfrastructure development (roads,markets,)Facilitate access to gas freezers(income generation)Distribution of coolers (incomegeneration)

22. The project´s gender strategy. The Project will ensure that women are given equalopportunities to participate in the management and enjoyment of project benefits. This will bereflected in project staff recruitment and in ensuring that women are targeted equally within targetgroups as relevant through technical fisheries, aquaculture, processing and trade training, communitydevelopment interventions (including a gender awareness unit) and functional literacy training. TheProject will monitor targeting effectiveness by collecting and analysing gender disaggregated dataand results between men and women headed households and incorporate necessary adjustments. Inaddition, community planning, governance, participation, monitoring and evaluation efforts forconcerted action will include the active participation of both men and women.

Monitoring targeting effectiveness

23. The Project´s overall M&E System was elaborated during the project design, signalling that allproject interventions need to be monitored to ensure that the Project reaches its intended groups andcan assess the degree to which project strategies are leading to expected results. At the start of theProject and the confirmation of the specific set of activities to be implemented, a detailed list of usefulgender and age disaggregated indicators will be identified for activities, outputs and outcomes, alongwith a detailed list of activities with corresponding target groups. Similar considerations will be takenwhen developing the baseline and end-of-project survey, and in project special studies. Projectdocuments and reports will include explicit social and gender data and analysis. The project will equipits personnel and other community facilitators to conduct qualitative analysis of results and determineif there are any observed changes in gender roles or new emerging livelihood trends among thedifferent social groups as a result of project interventions.


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ATTACHMENT 1: TARGET GROUP IDENTIFICATION, PRIORITY ISSUES AND PROJECT RESPONSES

Typology withinthe project area

Characteristics and Poverty Level * Coping Actions Priority needs Potential project responses

RESILIENTHOUSEHOLDS:These are householdsthat own productiveassets and havestrong social capital

Combined profitable livelihood strategies.They own fishing boats and have othersfish for them. Agricultural activity caninvolve access to mechanized ploughingand small-scale irrigation throughassociations or cooperatives. Stronglinkages with kin and those in positions ofpower in the community that facilitateaccess to credit and inputs fromgovernment programmes. Linkages incities facilitate regular mobility, access tomarkets and increased ability to sendchildren to school in the city.

Diversification of livelihoodactivities based on acombination of labour and theproduction of others rendersthese households lessvulnerable than others in theface of internal and externalshock. Strong social networksconstitute another mechanism ofsupport that can be enhanced indifficult times.

As for other social strata, fishingand processing practices can beimproved to increase yields ininland fishing areas. Illiteracy iscommon also in this group.

This group will be equally targeted with fisheriesand aquaculture extension services. Communitydevelopment activities will allow them to interactwith others on the grounds of ´communityinterest´ rather than only to enhance personalbenefits. They have the greatest potential tosuccessfully innovate and set examples for therest of the community – including commercialaquaculture activities, thus being primary targetsof such interventions.

VULNERABLEHOUSEHOLDS:Households that donot have largeproductive assets andhave limited socialcapital.

Households in this group combineagriculture, fisheries and other activitiesas possible, although they do notnecessarily always enjoy the same level ofaccess to inputs provided by associationsand cooperatives and do not benefit onequal grounds although they are membersof such groups. They are the main sourceof labour for the inland fishing boatowners, can provide agricultural labour inaddition to working on their own land forextra cash and often trade processed fishsurplus. Youth (15 to 35 years of age) withsmall families can represent an importantproportion of this socio-economic group insome communities. These households are

Diversification is the mainmechanism that is adopted bythese households to minimizetotal dependence onsubsistence agriculture. Strongintercommunity supportmechanisms can be foundamong these households andbetween these and those inmore favourable positions.

These households havecompeting basic daily needs andin increasing their productiveresource base by improving theyields of current activities,enhancing basic literacy skills,developing vocationalcompetencies and havingaccess to funding to start upother local small/micro-businessopportunities. They need tostrengthen their food reserves toreduce the risk of food insecurityand malnutrition if somethinggoes wrong. This social grouphas difficult access to social

This is the main project target group as theyrepresent the majority of the population, have thestrength and impetus to progress andcollaborate/partner with resilient households indriving small-scale widespread local economicdevelopment.The Project will enhance their current fisheriesand fish trade activities, increase their knowledgein areas that have the potential to enhancepersonal, household and community wellbeing,increase their participation in community fora andinvolvement in local development plans, thepossibility of increasing their saving capacity andof access to community financial services and ofdeveloping aquaculture activities and otherinnovative economic activities.


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both multi-dimensionally and economicallypoorer than resilient households.

services given that they do notnecessarily have strong ties incities where they are available.

VERY VULNERABLEASSETLESSLABOURERS:Households that workfor others

These households do not own productiveassets, have small or no agriculture plotsto meet food consumption needs. Theyfish for others (members of resilient orvulnerable households) or work on otherpeople´s land in the community or forlarger scale agricultural initiatives whenthese are located close by. They candepend of the use of rudimentary fishingtechniques to meet self-consumptionneeds where fishing is possible. It iscommon for members of this group toinclude seasonal workers, recently settledhouseholds with no or limited socialcapital in the community and localdwellers who have decided to not dedicatethemselves to subsistence agriculture.Their houses and smaller and in worstcondition than of the rest of the communitymembers.Access to social services is extremelylimited for these households when itaccess is dependent on taking transport(given the costs associated to it).

Households in this group appearto literally generate means ofsurvival day by day. Coping withthe impossibility of working orthe failure of their livelihoodactivity results in theirdependence on communitycharity or owing favours (indisadvantaged position) to othercommunity members.

Improve their personalcompetencies and livelihoodstrategies, to increase incomelevels, reduce dependence onothers and strengthen foodsecurity levels.This group is not represented inwider community fora. Theirneeds are not prioritized in theface of opportunities introducedfrom outside of the community.

Improving personal and fishing and processingcompetencies to enhance or open up householdlivelihood possibilities (including the adoption ofvery small scale aquaculture when minimalcriteria is met), income levels and food security.Improving savings capacity to invest inhousehold, livelihoods and access to socialservices improvements. The voice of this groupwill be incorporated into community developmentdialogue, planning and management.

* The lack of sufficient demographic and poverty assessment data in Angola does not allow for the categorization of households according to poverty levels.


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ATTACHMENT 2: IFAD’s KEY FEATURES OF GENDER-SENSITIVE

DESIGN AND IMPLEMENTATIONDesign

1. The project design report contains – andproject implementation is based on:a) Gender-disaggregated poverty datab) An analysis of gender differences in theactivities or sectors concerned,c) Analysis of each project activity from thegender perspective to address anyunintentional barriers to women’sparticipation.

Very little disaggregated data are available in Angola, butdisaggregated information by gender was used as a basis foranalysis when it was available. Small-scale agriculture andartisanal fish processing and trade are predominantly femininelivelihood activities in Angola. However access to both activitiesis strongly linked to the participation of male work force giventhe labour requirements in land preparation and fishing.Observation on the ground and interviews revealed that womenhave developed alternative mechanisms allowing them in someinstances to overcome this constraint. The livelihoods of womenheaded households that have not done so need to be betterunderstood. Each project activity was analysed with eachtechnical team member to assess and remove any unintendedbarriers that could limit both the participation of men andwomen, as the participation of both in equal proportions isstrongly desired, details are provided in the technical sections ofthe report.

2. The project design report articulates –or the project implements – actions withaim to: Expand women’s economic

empowerment through access to andcontrol over productive and householdassets;

Yes, the Project aims to increase women´s benefits in fishingactivities that they already participate in, increase their personalcompetencies and knowledge and opportunities to expand theirasset base (as a result of savings and credit). Increasedparticipation and voice in community affairs, explicit genderawareness and equitable access to project opportunities willenhance women´s control over her own productive resourcesand favour equitable control over household assets.

Strengthen women’s decision-makingrole in the household and community,and their representation inmembership and leadership of localinstitutions;

Community development interventions will directly broadenwomen´s scope of influence at community level. Functionalliteracy activities elevate women´s skillset and potential for theirpersonal development and of their households.

Achieve a reduced workload and anequitable workload balance betweenwomen and men.

A gender approach is included in the community developmentpackage that should raise awareness on the equitabledistribution of tasks and responsibilities between men andwomen at household level.

3. The project design report includes oneparagraph in the targeting section thatexplains what the project will deliver from agender perspective.

The Project´s gender approach has been included in Appendix 2of the project design document. It is worth highlighting that theproject will have equal gender targeting quotas for all projectinterventions of relevance for both men and women.

4. The project design report describes thekey elements for operationalizing thegender strategy, with respect to therelevant project components.

The design report and the corresponding log frame containinformation relative to the operationalization of the genderstrategy.

5. The design document describes - andthe project implements - operationalmeasures to ensure gender- equitableparticipation in, and benefit from, projectactivities. These will generally include:5.1 Allocating adequate human and

financial resources to implement thegender strategy

Yes, the costs associated to training IPA and service providerson gender issues have been included in the budget. A ´specialstudy´ has been included in the Monitoring and Evaluation Planand adequately budgeted. A gender specialist has also beenaccounted for in the budget to review all manuals and extensionmaterial used to ensure that it is gender sensitive. Equal

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Designtargeting is embedded in all relevant activities.

5.2 Ensuring and supporting women’sactive participation in project-relatedactivities, decision-making bodies andcommittees, including setting specifictargets for participation

Yes, project staffing should be as gender balanced as possible.As described above, the participation of women in communitydevelopment process will be paramount to boost women’spresence and active participation on community matters.Appropriate approaches will be used so that this is non-threatening for men.

5.3 Ensuring that project/programmemanagement arrangements(composition of the projectmanagement unit/programmecoordination unit, project terms ofreference for staff and implementingpartners, etc.) reflect attention togender equality and women’sempowerment concerns

The PCU will include a Community Development Specialist withprior experience in the promotion of gender equality. Staffingarrangements within the project should be as balanced aspossible and all staff will be trained on gender issues. Genderwill be included as a cross cutting issue in the communitydevelopment agenda to promote women´s participation andempowerment.

5.4 Ensuring direct project/programmeoutreach to women (for examplethrough appropriate numbers andqualification of field staff), especiallywhere women’s mobility is limited

Special efforts will be invested in recruiting and trainingextension staff, community facilitators (to be provided by theservice provider) and functional literacy trainers) to work withboth men and women and be sensitive of the needs of womenheaded households.

5.5 Identifying opportunities to supportstrategic partnerships with governmentand others development organizationsfor networking and policy dialogue

The Organização da Mulher Angola (OMA) is present is everyprovincial capital. Upon the start of the project OMA will becontacted to assess if any specific synergies that can be builtinto the project. Alternative emerging opportunities will beassessed during the lifetime of the project.

6. The project’s logical framework, M&E,MIS and learning systems specify indesign – and project M&E unit collects,analyses and interprets sex- and age-disaggregated performance and impactdata, including specific indicators ongender equality and women’sempowerment.

Yes, indicators in the log frame are disaggregated by gender asrelevant. The M&E and Knowledge Management Plan specifiesthat special attention will be given to tracking targeting quotasand the effectiveness that implemented strategies have onwomen headed households and making this informationavailable to planners at all levels to fine-tune strategies asneeded. Levels of representation of women and activeparticipation in community and governance processes willreceive equal attention in the project´s monitoring approach.


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ATTACHMENT 3: IFAD’S TARGETING POLICY - CHECKLIST FOR DESIGN

Issue Design1. Does the main target group -those expected to benefit most-correspond to IFAD’s target group asdefined by the Targeting Policy(poorer households and foodinsecure)?

Yes, the majority of those to be targeted at community level arevulnerable to food insecurity. The design process paid specificattention to ensuring that the success of the Project´s technicalstrategies does not rely on the exclusive participation of those withgreater access to opportunities and better chance of success,namely the ´resilient households´. While an important proportion ofinterventions focus on the community as a whole, vulnerable andvery vulnerable households constitute the majority of the population.The participation of ´resilient households´ is still relevant as thisstratum is the entry point to current economic developmentopportunities under the current status quo. Finally, specificinterventions will target vulnerable and very vulnerable households,taking into account gender and age group quotas, as relevant.

2. Have target sub-groups beenidentified and described according totheir different socio-economiccharacteristics, assets and livelihoods- with attention to gender and youthdifferences? (matrix on target groupcharacteristics completed?)

Fieldwork was guided by a strong social analysis resulting insocioeconomic characterization, understanding livelihoods exerted intarget communities and interrelatedness of the different groups. Itproved especially useful for team members to incorporate this lens intheir technical assessments on the ground. Matrix on target groupswas filled in.

3. Is evidence provided ofinterest in and likely uptake of theproposed activities by the identifiedtarget sub-groups? What is theevidence? (Matrix on analysis ofproject components and activities byprincipal beneficiary groupscompleted?)

Proposed areas of activity respond to the main priorities identified bycommunities visited during the fieldwork and the emerging needsidentified in the technical and social analysis.

4. Does the design documentdescribe a feasible and operationaltargeting strategy in line with theTargeting Policy, involving some orall of the following measures andmethods:

Yes, see below.

4.1 Geographic targeting – based onpoverty data or proxy indicators toidentify, for area-based projects orprogrammes, geographic areas (andwithin these, communities) with highconcentrations of poor people

Yes, target Provinces are in the second poorest region of thecountry. Geographic targeting within these areas was largelyconditioned by technical suitability of fishing activities. Technicalcriteria was developed for the identification of specific targetcommunities in selected project areas, including social, demographic,poverty and technical criteria. Estimated demographic data will needto be completed as a pre-requisite for its application.

4.2 Direct targeting - when servicesor resources are to be channelled tospecific individuals or households

Yes, food insecure households with no large productive assets willbe directly targeted. Gender (women / women headed households)and age group quotas (youth and adults) will be established forbeneficiaries in each socio-economic target group, as relevant.

4.3 Self targeting – when goods andservices respond to the priorityneeds, resource endowments andlivelihood strategies of target groups

The Project´s targeting strategies aim to respond to the priority needsof target groups from the following perspectives: fisheries /aquaculture, community development and literacy skills developmentperspective.

4.4 Empowering measures - includinginformation and communication,focused capacity- and confidence-building measures, organisationalsupport, in order to empower andencourage the more activeparticipation and inclusion in planningand decision making of people who

The Project includes a functional literacy component that will respondto a priority skill gap. Both the extension and the communitydevelopment components will encourage broad participation of allsocial, age and gender groups in all project activities. Poor men,women and youth will be directly targeted with interventions thathave a strong potential to improve their situation. Equal participationin the local development plan and related process will be promotedand enhanced by encouraging the participation of active men,

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Issue Designtraditionally have less voice andpower

women and youth from vulnerable and very vulnerable strata thatwould not generally be visible, in demonstrations and public venues.

4.5 Enabling measures –tostrengthen stakeholders’ andpartners’ attitude and commitment topoverty targeting, gender equalityand women’s empowerment,including policy dialogue, awareness-raising and capacity-building

As mentioned above, IPA staff will be trained in social and genderissues. Linkages will be created as relevant with the Ministry ofFamily Affairs and the Promotion of Women (MINFAMU) and OMAon project operations at local level. The Project in collaboration withits implementing partners will contribute to strengthen IPA´s M&Esystem and IPA will be in a much stronger position to participate inhigh level fora on fisheries, food security and poverty alleviation withstrong data on technical and social dimensions of fishingprogrammes.

4.6 Attention to procedural measures- that could militate againstparticipation by the intended targetgroups

Each project activity identified to date has been screened in socialand gender terms along jointly with the technical specialistresponsible for each area. The community development componentwill involve careful facilitation to ensure that intended participation ofall social groups is realized. On the same token, specific measureshave been included in the design to build in facilitation skills into theskillset of fisheries extension workers. Finally, criteria have beendeveloped for the selection of communities and target groups,representing solid and transparent selection processes.

4.7 Operational measures -appropriate project/programmemanagement arrangements, staffing,selection of implementation partnersand service providers

The PCU will include a Community Development Officer, who will beresponsible for the effective implementation of the project´s targetingstrategy, and more broadly, over all the social components of theproject. Service providers will be responsible for ensuring broadparticipation of all target groups and use of processes favourable forthe promotion of equity. Specific training will be provided to allplanners and implementers on social and gender issues.

5. Monitoring targeting performance.Does the design document specifythat targeting performance will bemonitored using participatory M&E,and also be assessed at mid-termreview? Does the M&E frameworkallow for the collection/analysis ofsex-disaggregated data and are theregender-sensitive indicators againstwhich to monitor/evaluate outputs,outcomes and impacts?

The M&E Plan, the log frame and the design document all highlightthe need to collect disaggregated data by target group (socio-economic strata), and within these, equitable gender and age groupparticipation, as relevant. Emphasis is also made on the need fordata aggregation to take place at different levels (community,municipality, provincial and project level for the conduction of regularparticipatory planning and monitoring. Yearly broad projectassessment of progress and achievements should be made throughjoint community meetings with the participation of key government,community and other stakeholder participation. Reports will containnot only disaggregated data but also gender analysis of progressmade, results obtained and effectiveness of project strategies.

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Appendix 3: Country performance and lessons learned

IFAD Portfolio Performance and Experience

1. IFAD has been working in Angola since 1991, beginning with the Fund’s first project, MalanjeSmallholder Sector Rehabilitation Project. When fighting resumed in 1992, maintaining a presence inthe project area became impossible and the project was closed; at the time, the disbursement levelhad been a very low 8%. After the signing of the Lusaka Peace Accord in November 1994, IFADbegan formulating new projects. At the time of the preparation of county strategic opportunities paper(COSOP) there were two active loan-funded projects, the Northern Region Food crops DevelopmentProject (PRODECA) and the Northern Fishing Communities Development Programme (PESNORTE).

2. PRODECA and PESNORTE became effective in 1997 and 1999, respectively however with thenew outbreak of war in late 1998 both projects were prevented from operating in large portions of theirrespective field areas and operations all but ceased. When the war ended in early 2002 and thesecurity situation improved and project areas became accessible again the objectives were re-evaluated and judged to still be valid. Implementation periods were extended to the end of 2007,providing valuable operational lessons to be applied in future lending programmes.

3. IFAD’s first and only COSOP was developed to cover the six year period 2005 to 2011. The 2004performance-based allocation system (PBAS) revealed poor performance in most indicators, which inturn was reflected in the low allocation of USD 1.2 million per year. At the time the main constraintswere a weak public administration system, poor working conditions, low levels of education and lowstaff morale. Few financial and human resources appeared to reach beyond Luanda. The Ministry ofAgriculture and Rural Development, the main state agency responsible for the agriculture sector in thecountry, received only a low budget allocation used primarily to cover salaries. There appeared to belittle contact between rural communities and government and the former were not organized norempowered to promote their own development. At the end of the period covered by the COSAP IFADtook the decision not to prepare a new Paper to cover the next period.

4. Subsequent to the preparation of the COSAP a new project, the Market Oriented SmallholderAgriculture Project (MOSAP), was formulated by the World Bank for an amount of USD 49.5 million tobe co-financed by IFAD with a loan of USD 8.5 million and became effective in 2009. MOSAPimplementation is behind schedule, with field activities having started only around mid-2012, some 2.5years after effectiveness due to difficulty in recruiting and retaining project staff as well as extremelylimited capacity in the Ministry of Agriculture to guide, manage and monitor the project. Nonetheless,its implementation progress has been encouraging since February 2012.

5. The main lessons learned from IFAD’s experience in Angola (at of the time of the COSOP) thatremain relevant to the existing project are:

The major challenge in the post-war period is to ensure that support for rebuilding thelivelihoods of the rural poor is based on the actual constraints and aspirations faced by thisgroup. At the moment, there is no holistic understanding of these changing livelihoodstrategies, and the Government maintains a top-down approach in the provision ofservices;

Implementation capacity is extremely weak and demands substantial external support boththrough technical assistance and tight supervision. Projects with simple, flexible designswill place fewer demands on the scarce managerial and financial resources available inthe rural sector;

Project design needs to adapt to changes in the country, such as the elections, increasedaccess to rural areas and ongoing population shifts;

A geographic focus is necessary because management capacity is limited, and the needs andopportunities in different parts of the country vary greatly;

IFAD has limited leverage in policy dialogue due to a lack of in-country presence, weak donorcoordination and the Fund’s modest lending level. The presence of a part-time projectfacilitator based in Luanda since July 2004 represents an opportunity to begin to engage


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more actively in policy dialogue, although there are presently only very narrow exchangesof information and mechanisms for coordination to which IFAD can contribute;

Working with NGOs as strategic partners in implementation and as service providers andtechnical advisers is beneficial. Using grants, IFAD can explore and demonstratelivelihood-based approaches to the identification of priority needs and the provision ofservices in rural areas;

Monitoring and evaluation systems, including gender sensitive baseline surveys, should be inplace from the start. Project teams need training in participatory monitoring and evaluationtechniques linked to the requirements of IFAD’s results and impact management system.Monitoring and evaluation systems should be used as a tool for learning and for capturingknowledge, leading to adaptations and improvements in project design; and

Evaluations of the Belgian Survival Fund investments in Angola have shown that theconstruction and rehabilitation of infrastructure in rural areas can have a quick positiveimpact on the lives of the poor.

Other Financing Agency Portfolio Performance and Experience

6. African Development Bank. The African Development Bank (AFD) has been working in Angolasince 1983 and built a portfolio totalling 33 operations. Those that were active at the time of the civilwar were cancelled. The Bank resumed cooperation with Angola in 2001 and has since approved 8operations totalling Units of Account (UA) 74 million, all of which were still ongoing at the time of thepreparation of the Bank’s 2011 – 2015 Country Strategy Paper (CSP). In the preparation of Banksupported Fisheries Sector Support Project in 2013 it described current portfolio performance asweak. This was attributed mainly to:

The absence of local Bank representation; Project units operating as almost autonomous entities and not being embedded in Government

structures;Weak internal controls with respect to financial management; andWeak capacity within the project implementation units with respect to application of Bank’s

procurement rules and procedures.

7. World Bank. Angola joined the World Bank Group in 1989 and assistance began with a creditfrom the WB’s International Development Association (IDA) for economic management capacitybuilding. The WB has invested a total of USD 948.6 million in the country to date. The current portfolioconsists of 6 investment projects including the aforementioned MOSAP. The Bank prepared an InterimStrategy Note (ISN) in 2007 that covered a two-year period that coincided with scheduled legislativeand presidential elections. The assessment of the implementation of the previous ISN covering theperiod 2005 to 2006 was “moderately satisfactory.” No project had problems with fiduciarymanagement or with counterpart funding however the portfolio was characterized as “fragile” withthree potential problem projects. Risks were to be mitigated through close monitoring and capacitybuilding especially for procurement, financial management and monitoring and evaluation. A CountryPartnership Strategy for the period 2013 – 2016 is being finalized and will be available in October2013.

Experience with Fisheries Projects in Angola

8. The Angolan Fishery Sector has benefited from partnering with several countries andinternational organizations, including: (i) the European Union (Support to the Monitoring, Control andSurveillance system-SADC MCS Programme and the ACP FISH II Programme in support of FisheriesManagement); (ii) Norway (support to fisheries research since 1985 and support to fisheriesmanagement, including the development of the master plan for fisheries); (iii) the United Nations’agencies such as FAO (Support to Capacity Development in Fisheries Management and FisheriesResearch, Quality Control and Marketing of Fish from Artisanal Fisheries), UNDP (Support to ArtisanalFishing in Ambriz and the Benguela Current Large Marine Ecosystem Project with the GlobalEnvironment Facility); (iv) the African Development Bank (Artisanal Fisheries Development Projectand more recently Fisheries Sector Support Project) and IFAD (Northern Fishing CommunitiesDevelopment Programme). Most of the operations described above went beyond technical assistance


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and provided also infrastructure, capacity building support, etc. Projects that appear most relevant tothe present project are:

9. AfDB Fisheries Development Project (AFDEP). The project objective was to expand thefishing activities and improve fisher’s incomes through provision of basic support services designed toboost their production and capacity. There were four components: infrastructure development,capacity building, rural credit and project management. Total cost UA 9.26 million of which the loanwas UA 7 million. This project was implemented in 10 coastal communities. The most importantlessons learned from the AFDEP (and other ADB fishery projects in Africa) were:

Landing sites should not only function to support the fishery sector, but also support involvedcommunities, to ensure the attractiveness of sites for usage by fishers;

A strategy covering the management of the fishery infrastructure should be developed duringthe start of the project;

All stakeholders should be represented in the Project Steering Committee, to ensure ownershipand participation in the project;

Costing during the first phase was not realistic. Rehabilitation of roads and construction oflanding quays was at least twice as expensive, and remuneration levels of project staffwas not adequate, resulting in difficulties in attracting and retaining competent staff;

Official project documents should be translated into Portuguese and this should be taken intoaccount in project costing;

Baseline-surveys should be carried out at the beginning of the project; Project implementation should be anchored in the government structures for sustainability

purposes; Credit for fishing and fish marketing has a weak record in most Bank supported fishery projects,

and was therefore avoided. Procurement and disbursement arrangements need to betailored to the specific conditions of Angola with limited use of ICB/NCB for goods andservices widely available in the local market; and

Government should put priority on fulfilling the conditions for first disbursement, so thatunnecessary delays are prevented. Similarly, unrealistic conditions should not be requiredby the donor before the first disbursement.

10. IFAD Northern Fishing Communities Development Programme (PESNORTE). PESNORTEbecame effective at the start of 1999, with a loan of USD 7.3 million and a grant from the BelgianSurvival Fund of USD 1 million. The most important lessons learned from PESNORTE were:

The community development approach, used in the implementation of PESNORTE whichsupported community managed infrastructure, led to good results in the strengthening ofparticipating groups and cooperatives, which are still visible years after the project’sclosure. Nonetheless, community support should have been more intensive and the cost ofinfrastructure investments might have been kept lower, had the communities participatedmore;

Use of service providers for activities that are outside the core competences of the projectimplementers contributes to performance, facilitates training and allows the concentrationof efforts by the project staff in the areas where they can be more effective. The approachfollowed in PESNORTE appeared to contribute to greater efficiency in the implementationof activities as well as greater effectiveness in the achievement of results of the project andin the future group strengthening activities should be contracted to specialised NGOs;

The Promotion Accumulating Savings and Credit Associations (ASCAs) in several ruraldevelopment projects, involving a majority of women provided their empowerment andeconomic integration in the community and has potential to be replicated;

Engagement of private traders through credit arrangements to solve the lack of supply of fishingequipment failed in PESNORTE. Credits channelled by public institutions had a very lowdegree of recovery and are not recommended for future interventions;

Continued financing of key positions and sufficient financial management capacity is crucial toensure good liquidity and timely implementation of the activities as demonstrated byPESNORTE and should be maintained in future projects;

Infrastructure built through support from development projects is often underutilized (e.g., thecentre of integrated support to artisanal fisheries and aquaculture) and there is a need to


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develop a strategy for the management of the fishery infrastructure before construction isapproved;

Management, coordination and implementation arrangements set up to support theimplementation of PESNORTE and the regular use of its staff was been important to thesuccess of the project and demonstrates that embedding project management in theresponsible government agency, is effective, facilitates performance and should beconsidered by new projects;

A dedicated project management unit, separate from the counterpart institution, revealed to bean effective implementation instrument for decision-making, coordination and guidance ofthe implementation of the project activities and provides an opportunity to put together aprofessional and dedicated team that can produce sound results with limited resources;

Inclusion of local authorities at the level of provinces to monitor sponsored projects representedan important contribution to facilitate coordination and contributed to the success of theproject and should be considered in future projects; and

The development of an incentive system covering key staff involved in the implementation ofproject activities proved to be an effective element in promoting project performance andcontributes to increased motivation of the implementing agency's staff directly involved inproject activities, holds them accountable and can have a significant impact on the degreeof achievement of the project effects.

11. These performance reviews and project evaluations and lessons-learned have been assessedand incorporated into project design.

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Appendix 4: Detailed artisanal fisheries and aquaculture project description

Introduction

1. The project goal is poverty reduced in artisanal inland fishing and small-scale fish-farminghouseholds in target communities. The project objective is improved food security and nutrition amongartisanal inland fishing and fish-farming households. The Project is divided into three components:Inland Artisanal Fisheries Development (Component 1), Small-scale Aquaculture Development(Component 2) and Project Management (Component 3).12 The Project Management Component(Component 3) has been described in Appendix 5. In addition to these components, project designhas incorporated a number of activities that address climate change (CC) issues as they affectfisheries and aquaculture in the Project’s two technical components.

Component 1: Inland Artisanal Fisheries Development (base cost USD 4.6 million)

2. Angola’s continental fisheries are exclusively artisanal in nature. The majority of catch is madeup of a few species, mainly tilapia and catfish. Inland fishing areas are varied and include small tomedium size artificial and natural lakes, rivers and extensive floodplains; there are no large waterbodies. The majority of fishing craft used in inland waters are dugout canoes, made from tree trunks,and small planked boats (chatas) of 3 to 4.5 m in length and operated either with oars or poles (duringthe dry season).13 Fishing technology is dominated by a relatively small number of fishing gears; themost common are gill nets (redes de emalhar), handline (linha de mão, cast net (tarrafa), trap (covo orgaiola), and small-mesh seine, often operated by women. No census of artisanal fisheries exists andthe total number of existing boats is unknown.

3. Fish technology (i.e. equipment used and practices applied in handling and processing fish on-board and after landing), is rudimentary. Fish are usually gutted ashore, in poor conditions (i.e. withno shelter, clean water and waste management), then salted for drying (when catch is not in acondition to be smoked) or smoked in simple drum kilns; smaller species and sizes are simply dried,without salt. Only a small proportion of the catch is sold as fresh, whenever transport conditions allowit to be channelled to cities (in the best cases, some ice produced in home freezers in the city may beused).

4. To date, there are no regulations specific to inland fisheries. IPA has elaborated a proposal,which, after submission to the Legal Cabinet of the Ministry of Fisheries will be submitted for approvalto the Council of Ministers.

5. The country’s inland fisheries are at present not meeting their potential in providing a source oflivelihood and income to rural populations. This situation is a result of: (i) insufficient capacity and poorperformance of public institutions responsible for promoting the development of inland fishing; (ii)unfavorable conditions preventing the participation of the community members in the resolution oftheir problems; (iii) low returns from fishing and other activities along the fish production chain; (iv)difficult and irregular links with markets; (v) difficult access to social services; and (vi) limited accessby household members to opportunities allowing the diversification and increase of the sources ofincome.

6. Government response to the situation described was outlined the Management Plan forFisheries and Aquaculture 2006-10. The Plan recognizes the almost total lack of reliable informationon the inland fisheries and establishes the following priorities: (i) a systematic survey of the fishingactivity and natural potentials; (ii) promotes a comprehensive effort to collect sub-sector relevant data(e.g., fishing methods and techniques, systems of organization of production, regulations in use, etc.);(iii) assessment of potential; (iv) improvement of traditional processing methods and higher quality; (v)organization of the productive structure and consolidation of cooperatives and producers'associations; and (vi) supporting systems in terms of micro-credit and low interest rates. The main

12 A possible third component, coastal marine fisheries was identified at the time of the preparation of the Concept Note (CN)This was later dropped in early preparation on the basis of: (i) reducing project complexity, (ii) budgetary constraints and (iii)overlap with a recently approved ADB fisheries project.13 The Ministry of Fisheries has recently introduced a series of new types of boats, in fiberglass (either imported or produced inLuanda area); those without engines are used for fishing, those motorized are used to transport passengers and goods,including fishing produce. Maintenance and repair facilities are largely absent in the area, including in the cities.

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beneficiaries identified in the Plan are: (i) inland populations (in terms of food diet); (ii) inlandcommunities (for greater security and well being, through more job opportunities and higherhousehold incomes); and (iii) fishermen and direct stakeholders in the marketing and distribution offishing produce. Many of these priorities have been reflected in component design.

7. The basic approach to component design was significantly shaped by the dearth of informationon the sub-sector. There are little to no data on population in the municípios and comunas, number offishermen and catch in inland waters, fishing potential, level of exploitation of the fishing resources,post-harvest losses, prices of fishing produce and marketing. Much of component design was basedon direct observations carried out during design fieldwork and information provided by researchersand artisanal fishermen. As a consequence a cautious approach with respect to the expansion offishing effort in the early years of component implementation will be adopted until more preciseinformation becomes available through activities supported by the Project.

8. The objective of Component 1 is to achieve an inclusive and sustainable development andmanagement of the inland fisheries sub-sector that in the future could be replicated in other provinces.The component will cover a continuous area, consisting of the comunas on the North side of theKwanza River (a navigable route throughout the year, of the utmost importance in terms of transportof passengers and goods), between Dondo, in the North Kwanza Province, and the Kwanza Rivermouth, in Luanda Province. The area will also cover the comunas traversed by Dande and BengoRivers, in the province of Bengo and Luanda. As in the case of the Kwanza River, this latter areapresents a large number of lakes, some of which are seasonally or permanently linked to those rivers.All fishing communities are located around the lakes and along the rivers. The total number ofbeneficiaries targeted by the component is an estimated 15,000 represented by fishermen (10,000)and processors and small traders (5,000). Geographically, some 5.000 would be in Bengo and 2.000and 8,000 from North Kwanza and Luanda provinces, respectively.

9. The outcome of the Inland Fisheries component is inclusive, sustainable inland fisheries sub-sector development and management contributing to strengthened livelihood strategies at householdlevel. To achieve this outcome the component will support activities to achieve the following fouroutputs that have been described in greater detail below:

Output 1.1: Institutional capacity strengthened (national, provincial, local/extension service); Output 1.2: Improved community participation in economic and wider local development

processes; Output 1.3: Increased quantity and quality of fish produced and sold on a sustainable basis;

and Output 1.4: Improved market related infrastructure.

10. Output 1.1: Institutional Capacity Strengthened. The objective of Output 1.1 is to provide thenecessary capacity to the institutions involved in the implementation of the component. To achievethis objective the component will support:

11. Strengthening of the IPA extension services for artisanal fisheries. The IPA, the project’simplementing institution, will be supported through the strengthening of its extension services in theprovinces included in the project area. Support will consist mainly of training extension workers so thatthey are able to implement the technical activities of the project. Where required, this support could beextended to other implementing partners, public or private, as will be further investigated during theappraisal mission of the project;

12. Census of inland artisanal fisheries. A census of the inland artisanal fisheries in the projectarea is essential to provide the basis both for detailed planning of future project activities and theestimation of catch and fishing effort in the project area (see Attachment 1);

13. Estimate of fishing potential. A study to assess fishing potential in the project area will besupported early in Project Year (PY) 1 to provide an indication of the status of fish stocks and to whatextent the Project could support the expansion of catch;

14. Monitoring of artisanal fisheries. In support of the component’s cautious approach tofisheries development in the project area, a fisheries monitoring system will be set up in the projectarea in PY 1. Priority information to be monitored will be on catch, effort and catch per unit effort(CPUE) as well as biological data. Once established the monitoring program will be expanded to


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cover other key environmental parameters, including climate change, post-harvest fish losses andsocio-economic data, including prices along the fishing produce value chain.

15. Participatory fisheries development and management plans and strengthening of localsurveillance of fishing activities. In coordination with the fisheries administration authorities, underthis activity the component will promote the development and implementation of community-baseddevelopment and management plans. These plans will also include measures to protect theenvironment and adaptation to climate change, as well as traditional practices where appropriate. Thecomponent will also facilitate the discussion to define simple arrangements to enforce themanagement measures, based on local capacity.

16. Strengthening capacities to address CC: During a national awareness-raising workshop onCC IPA, INIP, Ministry of Fisheries and other relevant participants will learn about and discuss CCissues in fisheries and aquaculture, supported by a background study on the Disaster RiskManagement System in Angola and its gaps. IPA extension workers, the community service providerand other relevant participants will also attend training on CC vulnerability and risk assessment. Theoutcomes of the CC vulnerability and risk assessment at community level will be summarized in a CCvulnerability and risk assessment report and adaptation investment proposal which will be presentedand discussed during a workshop in Luanda.

17. Output 1.2: Improved Community Participation in Economic and Wider LocalDevelopment Processes. The objective of Output 1.2 is to improve the level of communityparticipation and degree of effectiveness in local development processes. To achieve this objectivethe component will support:

18. Promotion of integrated community development. A service provider will be contracted tosupport individual communities over the course of the project’s first three years, covering the issuesdescribed. Municipal Governments will also be targeted as relevant to support this local governmentbody and the Conselho de Auscultação e Concertação Social (CACS) strengthened to better meet itsnewly assigned decentralized management role. Men, women, youth and adults will be included inthese community development activities on equal grounds. Specifically under this Output the projectwould support:

19. Public awareness-raising. The component would support public awareness raising activitiesemphasizing the following topics:

HIV/AIDS. This will include awareness raising on modes of transmission, identifying riskybehaviour, HIV prevention, opportunistic infections and facilitate identifying clinical services,support groups and resources;

Climate change and sustainable use of the resource base. Raise awareness on emergingglobal changes and how they manifest. Assess factors of vulnerability and effects on thenatural resource base and local livelihoods with the view of identifying measures that allowcommunities to cope with emerging shocks and mitigate their effects;

Danger of mines. Explanation on types of mines, how to recognize and avoid them and howto act in the event of suspecting the presence of a mine will be supported by the communityfacilitator;

Gender. The service provider will carefully introduce the concept of gender to communities ina non-threatening way, facilitate a joint process of identifying the differences in level ofresponsibilities and tasks assumed by men and women, the dimensions in which men andwomen usually participate in decision-making and assessing the consequences both at thehousehold and community. This will set the ground for participation of men and women inproject activities on equal grounds; and

Food security. Raising the awareness of local communities on the need to ensure that alinkage is created between food availability, access and consumption. Specific issues tocreate added value along this chain is producing sufficient varied food for consumption andcreating food stocks. Linkages will be created with agricultural extension services wherepresent. The Project will promote small vegetable gardens at household level and will link withfarmer demonstration schools where these exist.

20. Nutrition education. A nutrition education intervention including a study on local foodconsumption patterns, food taboos, weaning practices and local cooking preferences will beconducted at the start of the project to inform the strategic areas of nutritional improvement in the


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project area to be included in this nutrition education component and provide basic training to theservice provider and other key stakeholders on this issue. Activities to be implemented by the serviceprovider will include a participatory assessment of critical nutritional problems at the community levelespecially for children, the transmission of basic nutrition concepts, facilitating the understanding ofcritical areas of importance in nutrition, the discussion of food taboos. A service provider will facilitatethe identification of food that is available or can be easily produced by local households to addressmain nutritional challenges. Local cooking demonstrations will take place at community level, with theview of creating a small network of nutrition educators.

21. Preparation of community development plans. A service provider will work with communitiesin assessing and prioritizing local development challenges, identifying which problems can beaddressed at community level through community efforts or with other players. The main areasrequiring large investments on infrastructural or services under Government responsibility will beincluded in the preparation of community development plans to be formally submitted to the MunicipalGovernment. Target communities will be linked with municipal planning processes in the context ofCACSs and their plans considered within municipal yearly plans. As infrastructure and/or servicescome to the community, the service provider will work with the community and the local Governmentand local authorities to facilitate the creation of local use, management and maintenance capacities tosustain these.

22. Functional literacy training for selected individuals in the community will also be provided

23. Output 1.3: Increased Quantity and Quality of Fish Produced and Sold on a SustainableBasis. The objective of Output 1.3 is to achieve a higher income for members of fisheries-dependentcommunities involved in the fish production chain (covering fishing, handling, processing,storage/conservation and marketing activities). Specifically, under this output the component willsupport the following activities:

24. Market study. A market study will be carried out at the start of the project to provide a clearerview of the importance of the various channels and analyse their dynamics, both for fisheries andaquaculture. A follow-up study will be carried out in PY 3 to assess the response of the markets toincreased supplies of traditional and fresh fish, the response of consumers to better quality fish andidentify further opportunities for market development. A third and final study will be carried out at Endof Project (EOP). Terms of Reference for this study are presented in Attachment 2;

25. Training of fishers. Specific training will be organized for Fishers, on topics such as boatmaintenance, net construction, net selectivity, safety on board etc.;

26. Training of fishers, fish processors and traders in fish handling, conservation andmarketing techniques and good practices. The focus will be on improving the quality of traditionalpreservation methods through the dissemination of improved drying racks and smoking kilns. It wouldadditionally focus on the use of ice along the value chain, which is currently insignificant. For bothtraditional products and fresh fish, observance of good practices needs to be strongly increased,together with the promotion of improved devices and equipment. Regular sensitization sessions wouldbe carried out with fishers, fish processors and traders in the fishing centres as well as with fishtraders in some main landing and marketing sites;

27. Income generating livelihood activities It is anticipated that the value chain for fresh fishoffers good development prospects, in particular in municipal and provincial capitals; these can onlybe met if availability of good quality ice and its use under good practices (including proper ice and fishcontainers) are promoted all along the chain. The use of gas home freezers (readily available inLuanda) to keep ice and eventually fish in major production areas without electricity will bedemonstrated together with proper fish containers. The criteria for the selection of the individuals incharge of the demonstration activities will be clearly defined, as well as their contractual obligations(e.g. possibility to acquire the equipment under a kind of leasing agreement and turn it into an Incomegenerating livelihood activity, if it is proven viable; initial down payment to ensure responsibility of thebeneficiary; supply of data on actual use of the equipment etc.). For fish processing, the project couldpossibly support part of the construction of improved smoking kilns, improved drying racks andeventually solar dryers and use of proper individual storage facilities;


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28. Production of training materials. As a complement to the materials already available (namelythose produced under a partnership with INFOSA), training material consisting essentially of videos,will be produced locally and used in the training activities mentioned above; and

29. Radio/TV broadcast programmes. Dissemination of short messages on topics such as fishquality, good practices in markets, proper preparation of fish would be done through the local media tosensitize consumers. Contracts would be established at provincial level for regular broadcasting of theprepared programmes.

30. Output 1.4: Improved Market Related Infrastructure. The objective of Output 1.4 is toimprove infrastructure to facilitate the handling, processing and marketing of fish. Basic improvementswill be made on market infrastructure such as handling/processing facilities in major landing sitesalong lakes, wholesale and retail markets along one major rivers as well as tertiary roads linkingproducers to consumers. Under this output the component will support the following activities:

31. Construction of handling/processing facilities in landing sites along lakes. Thecomponent will support the construction of a number of simple buildings (with supply of potable water,sanitation and, possibly, storage space) in selected fishing communities to ensure proper workingconditions to fish processors and better quality to the products;

32. Loading/unloading sites and markets along major rivers. Large quantities of fish aretransported by boat from lakes to municipal cities or directly down the river to Luanda. The componentwill support the improvement of one site along the river with a landing ramp and a market building(with potable water supply, sanitation, storage space, electricity, retail area, surface drainage andsolid waste disposal); and

33. Tertiary roads. A large number of inland fishing centres, particularly those not connected bycanals to the main rivers of the project area or are connected only during the rainy season, havelimited access to consumer markets, with difficult, unreliable or often impossible vehicle access. Theproject would support spot-improvement of a selected number of tertiary roads.

34. In all cases, basic principles regarding proper design, asset ownership, management andmaintenance of market infrastructure and facilities are of critical importance and will need to beproperly dealt with by all involved partners.

Component 2: Small-scale Aquaculture Development (base cost USD 1.93 million)

35. Aquaculture development started in Angola well before independence but there is littleevidence that it grew beyond its initial rudimentary nature. During the war that followed the colonialperiod much of the existing infrastructure was destroyed or no longer operational. Despite a renewedinterest in the sub-sector following the war, this situation impeded its further development. At presentthe sub-sector is dominated by small-scale family operations (aquicultura comunal) but in areas closerto Luanda private companies are more typical. Although production figures are not known it isestimated commercial farms may produce some tens of tons of fish a year while family fish farmingmay account for only a few tons of fish per year. Commercialization of products from family pondsseems almost non-existent as all fish produced is consumed either by the pond owner and/or sold tothe neighbours.

36. Despite the existing situation there appears to be a large potential for aquaculture growth inAngola based on: (i) the existing market for fresh fish, (ii) an abundance available land in rural areasand (iii) availability of relatively cheap labour. Nevertheless, there are few reliable data to make aconvincing case for the commercial potential of aquaculture (e.g., the absence of cost data on fishfeed and fingerlings). The existence of several failed aquaculture projects in the recent past underlinethe importance of taking a cautious approach in developing the sub-sector until more data becomeavailable.14

37. The present priorities of Government in the sub-sector are based on four directives, of whichthe two most relevant to family aquaculture and the component are to: (i) contribute to food safety and

14 The abandonment of the Spanish supported Melange fish hatchery is a case and point. It was thought due to its dependenceon unreliable aquaculture inputs such as fingerlings and fish feed. Moreover, small-scale operators did not appear to be trainedin fish production techniques, which resulted in poor production rates.


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increase commercialised quantities of aquaculture products; and (ii) create employment and increaseincome especially in rural and coastal communities.

38. As the country has little history in aquaculture, the basic approach integrated in componentdesign will first support activities that contribute to creating the conditions needed for aquaculturedevelopment (e.g., training of extension workers, provision of high quality inputs, etc.) subsequent towhich the extension workers will provide assistance to selected local communities to developaquaculture activities and support them in planning and construction of fish ponds and in fish pondmanagement. With increased fish production, the relative level of auto-consumption of the fish isexpected to decrease and shift towards the selling of fish in the market. Once emerging farmersaccumulate money generated from fish sales it is expected that they may ‘naturally’ grow into morecommercial fish farming by investing money from fish sales (e.g., in improved fish food or more pondsbuild by hired labour).

39. The objective of Component 2 is to support the aforementioned Government priorities for thesub-sector in the provinces of Malanje, North Kuanza and Bengo. Similar to Component 1 and in lightof the rudimentary nature of the sub-sector, in particular at the farm level, lack of capacity anduncertainty of data, a cautious approach was taken in component design. The Component will initiallyfocus its efforts in only one province (Malanje). If successful in the component’s first years, activitieswill be expanded to other suitable areas in North Kuanza and Bengo provinces. The total number ofbeneficiaries targeted by the component is an estimated 800 families represented by 724 familiesengaged in small-scale family fish farming, 62 engaged in aquaculture as emerging farmers and 14 assemi-commercial fish farmers. Geographically, some 678 would be in Malanje and 79 and 43 fromNorth Kuanza and Bengo provinces, respectively.

40. The outcome of the Aquaculture component is inclusive, sustainable small-scale aquaculturesector management and development contributing to strengthened livelihood strategies at householdlevel. To achieve this outcome the Component will support activities to achieve the following fouroutputs that have been described in greater detail below:

Output 2.1: Institutional capacity strengthened (national, provincial, local/extension service); Output 2.2: Improved community participation in economic and wider local development

processes; Output 2.3: Increased quantity and quality of fish produced in fish ponds and sold on a

sustainable basis; and Output 2.4: Government hatchery infrastructure effectively provides project clients with

required inputs.

41. Output 2.1: Institutional Capacity Strengthened. The objective of Output 2.1 is to provide thenecessary capacity to the institutions involved in the implementation of the component. To achievethis objective the component will support the following activities:

42. Strengthening of aquaculture extension service. The project will support IPA with a senioraquaculture specialist to support management in Malanje and to train project staff. Extension workerswill be mainly trained on the job. Specific training in the areas of fish reproduction and fish feeding willbe provided by international specialists hired to support the production of good quality fingerlings atthe Malanje hatchery and to support the installation of a simple feed mill. These specialists will alsowork with the extension workers in the preparation on technical manuals on: (i) pond construction, (ii)fish pond management and (iii) fish reproduction. Apart from technical training, extension workers willalso be trained in extension skills and in working with communities, including on climate changeissues. The component will also provide budget support to guarantee salaries for new extensionworkers during their first year with IPA. Finally, project staff and extension workers will participate inthe national climate change awareness workshop held in Luanda (see Output 1.1, above), which mayhelp to implement the Project as ‘climate smart’ as possible.

43. Design and implementation of monitoring system. The Component will support theestablishment of a system to monitor selected project supported fishponds and a range of production-related parameters. It is envisaged that this data collection system could be further expanded to coverpost-harvest losses and also provide information about climate variability and CC impacts. Datacollection in the field will be part of the work of the extension workers.


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44. Policy dialogue with regard to fisheries and aquaculture development. Government policyin support of aquaculture is based on a 2004 proposal paper (Proposta de politica para odesenvolvimento da aquicultura em Angola) which, despite its revision, has never been adopted norimplemented. Presently the Ministry of Fisheries plans to revise this policy proposal and produce anupdated version. At the same time the Fisheries Law and/or its Regulations are likely to be revised.Policy dialogue could address one or more of the following issues: (i) updating of the country’saquaculture development strategy; (ii) formulating new aquaculture regulations with special attentionto (a) characterization and regulation of small-scale aquaculture and (b) the introduction of exotic fishspecies; (iii) development of incentives for aquaculture; and (iv) policy compliance and lawenforcement. Policy support to government will be provided through the project team in Caixito /Dondo supported by selected national and international TA.

45. Output 2.2: Improved Community Participation in Economic and Wider LocalDevelopment Processes. The objective of Output 2.2 is to strengthen communities by awareness-raising in social issues of critical importance to the whole community and specifically attend the needsof will-be fish farmers and all other people involved in small-scale aquaculture at the community level.To achieve this objective the component will support:

46. Community level to serve as nucleus for project interventions. As there are now noaquaculture communities in the project area, there are no existing participation processes to build onand improve. Once the group of potential fish farmers in a community have been selected, there willbe a need to organize them in order to facilitate the provision of services (such as technical support,distribution of kits, training, etc.). Moreover, these organised groups will serve as the nucleus in thecommunity from which further aquaculture development is promoted and coordinated and they shouldbecome organized to approach (local) government on issues of importance to the fish farmers. Thisoutput will be achieved through supporting the following activities:

47. Addressing community needs while forming aquaculture groups. Within the above-described process of selecting potential fish farmers in local communities, the first steps toapproaching communities will be to become familiar with the community social structure and identifythe weaker social groups. During this process issues of major social impact will be identified (e.g.HIV/AIDS, general health issues, poor nutrition levels, education, etc.), and addressed by professionalservice providers and at least treated at the level of awareness-raising. For more detail refer to theactivities supported under Output 1.2.15

48. Output 2.3: Increased Quantity and Quality of Fish Produced in Fish Ponds and Sold ona Sustainable Basis. The objective of Output 2.3 is to achieve valuable food from small-scaleaquaculture production and improve nutrition and welfare of rural agricultural and fisheries familiesTo achieve this objective the component will support:

49. Mapping study and community selection. There are a large number of variables thatcharacterize the project area that need to be assessed to determine suitability for aquaculture leadingto site selection. These include, land and water availability, soil quality, distance to markets, altitude(and its effects on ambient temperature and fish growth), presence of IPA extension workers andavailability of natural and artificial water bodies. This will be achieved through support for a mappingstudy of the area to identify areas with high potential for aquaculture development.16

50. Once the appropriate areas are identified communities with high potential for the developmentof family sector aquaculture will be selected and be the responsibility of local extension workers incooperation with a (local) NGO with expertise in the area of communal development in Angola.Communities will be approached and their potential assessed while taking into account the desire toinclude the most vulnerable layers of the society in this activity. Efforts will be made to identify thesocially weaker people in the communities and ensure their active participation in the Project. This

15 The awareness-raising on CC and CC vulnerability and risk assessment activity has been described under Outcome 1 to becarried out by the community facilitator. While the assessment will equally address aquaculture and the basic the approachwould be the same. The outcome of the vulnerability and risk assessment however would be expected to be different comparedto the one conducted in inland fisheries communities.16 FAO will conduct an aquaculture mapping study in North Kuanza to determine the aquaculture development potential of theprovince. This study will assess both the possibilities for commercial and family fish farming. If successful, it is expected to berepeated elsewhere in the country (and Malanje and Bengo provinces will quite likely be included in such a study).


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work will be mainly outsourced to a (local) NGO (which still has to be identified). However, as soon aspossible, aquaculture extension workers will also participate in this initial phase of aquaculturedevelopment. Within the communities participants of the project will be selected, based on the above-mentioned social structure of the community, but also on other criteria (e.g., the availability of suitableland and water, the access to fertilizers for the pond and feed for the fish, and on motivation ofparticipant).

51. Training and technical support of farmers. Participants in the component will receive short-term training from extension workers on the selection of areas to build fish ponds, the construction offishponds, guidance during the digging of fishponds, putting water and fish in the pond and in pondmanagement.

52. Distribution of pond construction and pond stocking kits. Extension workers will distributetools and equipment for pond construction (pond construction kit) and fish for stocking the pondtogether with some fish food for the first days of the fish in the new pond (pond stocking kit).

53. Promotion of management for long lasting and sustainable production. Once the pond isoperational and stocked, the extension workers will have the task to guide and help the owners of thefishponds to feed their fish properly. Already in the planning phase before pond construction starts,the extension workers will have to verify if a family has enough food for the fish available for the sizeof pond they intent to construct.

54. Aquaculture inputs study. For family-based aquaculture production systems sufficientquantities of on-farm inputs (e.g., agricultural by-products, household off-fall, and manure) will benecessary to make the pond(s) productive. Unfortunately, in subsistence agriculture there is only alimited amount of by-products produced which are usually of a low quality. The Component willsupport a study into fertilizers and fish feeds for family fish farming early in the Project. The study willbe important for: (i) developing a fish pond production strategy based on present status; (ii) preparinga development strategy for improving aquaculture production beyond that point; and (iii) developingprotocols for processing activities of the feed mill.

55. Cage farming study. There is a good potential for pen/cage fish farming in Bengo and Luandaprovinces due to existence of several larger lakes and the proximity of a good market for fish. A studywould be supported no later than by the end of PY 3 to assess the potential of cage farming in, thesetwo provinces and the results used when planning aquaculture activities in PY 4 and 5.

56. Output 2.4: Hatchery Infrastructure Effectively Provides Project Clients with RequiredInputs. The objective of Output 2.4 is to provide infrastructure and expertise for the production ofessential inputs for (small-scale family) aquaculture. To achieve this objective the component willsupport:

57. Rehabilitation of Malanje fish hatchery. The existing AECID supported tilapia fish hatchery inMalanje (near the city) can with limited investment be transformed into a unit for (improved) tilapiafingerling production and may be used as a provincial training center. This recuperation, includingsome road repair to improve access, will require only a modest investment compared with the initialinvestment from the AECID project. Specific investments consist of the repair of drainage canal,completion of the construction of 4 ponds, the recuperation of another 4 small ponds, equipping thelaboratory, making the hatchery operational (e.g., equipping with pumps, funnels, etc.) and trainingextension workers and government employees to manage the plant which is projected to produce200.000 fingerlings per year by the end of project. Senior specialists in the specific aquaculture areaswill support the main activities of this output.

58. Construction of a feed mill. Following the results of the study above, at the end of projectyear (PY) 1 or start of PY 2, the component will support the construction of a basic feed mill nearMalanje city built for the production of a simple fish feed made from local available ingredients andsuitable for semi-extensive tilapia farming.

Implementation Arrangements

59. The Project will be implemented by IPA’s central departments and its respectiverepresentations in the three participating provinces where extension staff would be located. WhereIPA’s extension capacity is weak this will be strengthened through support provided by the Project. AProject Coordination Unit (PCU) will be installed in the city of Caxito, capital of the Bengo Province.


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This PCU will be under the direct responsibility of the General Director of IPA and headed by acoordinator and supported by a technical team, including specialists in fishing technologies andcommunity development. This technical team will be augmented as needed with the hiring of nationaland international consultants and the use of service providers. In addition to the PCU an aquaculturecomponent management team will be based in Malanje, located in proximity to the project-supportedhatchery and the aquaculture ponds supported in the early years of the Project. In light of the inter-agency nature of issues and adaptation measures associated with Climate Change the project willpromote IPA’s (or INIP) participation in the relevant inter-ministerial bodies to enhance the visibility ofthe inland fisheries and aquaculture sectors in those bodies. In addition, the active search foradditional partners, including for resource mobilization, will be supported under the Project. For moredetail on the project’s institutional aspects and implementation arrangements see Appendix 5.

Risks

60. The following general risks were identified for Component 1: Inland Fisheries:

Risk of overexploitation of the resource. Improving the marketing conditions, may lead toan increase in fishing effort and subsequently overexploitation of the fish resources in thetarget provinces. This risk could be exacerbated further given IPA’s main mandate onfishery production rather than sustainable resource utilization. Mitigation: as fisheriesmanagement is an essential condition for the sustainable development of the artisanalinland fisheries, it must be formally recognized and accepted by all project stakeholders thatmeasures towards improving management effectiveness will be most important inComponent 1 implementation. Agencies mandated with fisheries management (namely INIPand SNPPA) will be present to support component implementation at all levels.

No market for increased fish production. There is a risk that increased production arisingfrom project efforts in support of both fishing and fish-farming may not be absorbed by thedomestic market. This risk could be further exacerbated by externalities, such as levels ofyield derived from industrial fishing and fish imports. Mitigation: A market study to be carriedout at the beginning of the Project (with a follow-up study in Year 3) will give clearindications on the present structure of the market and its potentialities; particular attentionwill be put on assessing the potential competition from imported frozen tilapia. In any case,the Project will not focus efforts on increasing of production before the proper resourcemanagement system is in place. Overall, this risk appears to be low, given the obviousincreasing urban demand yet with limited imports of small pelagic fish (mostly horsemackerel from Namibia) by the Ministry of Fisheries (as a function of domestic supply ofhorse mackerel from the national fishing fleet);

The local authorities fail to show a pro-active response to participate in the processof improvement of the market infrastructures. Management committees are not able tomanage the market infrastructure. Mitigation: the Project will ensure that the institutionalcapacity is strengthened and that participation in local development processes is improved,as outputs 1.1 and 1.2, respectively.

61. The following general risks were identified for Component 2: Aquaculture:

Policy constraints. There exist a number of existing decrees applicable to family based fishculture that could impede the development from subsistence family aquaculture into a moremarket-oriented business. These requirements on size, use of native species, water qualitythat are likely to serve as disincentives to small scale farmers to develop themselves insmall-scale enterprises producing for the market. Mitigation: A policy study will besupported under the project.

Sustainability of hatchery and the milling station. There is a risk at end of project (EOP)that Government will not have the resources to support the operating costs of project-supported infrastructure. Mitigation: The Project will support the transfer of operations fromgovernment ownership to an outside operator (e.g., private enterprise, one of the successfulfish farmers or NGO) by EOP. In order to make sure this transfer of the infrastructure to anoutside partner, the sale should follow recognized best practices and be circulated widelyamong interested buyers.


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62. The following general risks were identified for Climate Change activities supported under theProject’s two technical components:

CC impacts are long-term processes. The lack of time series data for relevant variables(e.g. stock status, temperature, rainfall etc.) makes it difficult to identify potential CC impactson inland fisheries and aquaculture. Mitigation: Traditional knowledge and observations willbe a starting point for capturing potential sector vulnerabilities.

Limited institutional capacity on CC. IPA, INIP and MdF have very limited resources interms of funding and staff, in particular at the provincial level in CC. It is therefore importantto develop synergies wherever possible also with other partners, including the MdE.Mitigation: The Project will support the participation of fisheries staff in inter-sectoralinstitutional bodies that deal with CC. Participation in these bodies should facilitateinformation flow, including on potential funding of CC related activities in fisheries andaquaculture.


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Attachment 1: INLAND FISHERIES CENSUS IN THE PROJECT AREA

TERMS OF REFERENCE

Background

1. IFAD has been supporting the artisanal fishery sector in Angola since 1991 throughconsecutive loans. The newly formulated “Artisanal Fisheries and Aquaculture Project” (2015-2019),will build on the work, successes and lessons learned from the previous IFAD-supported projects, withthe aim of promoting improved livelihoods and food security of poor households involved in artisanaland fishing fish farming activities in Bengo, Luanda, North Kwanza and Malanje provinces. IPA is thenational institution responsible for the project implementation, within the Ministry of Fisheries.

2. The project´s overall development objective is to attain improved food security and nutritionamong artisanal inland fishing and fish-farming households.

3. The project will be financed with an IFAD loan and will be co-financed by the Government ofAngola. The Component 1 of the project will focus on Development of Inland Artisanal Fisheries,Component 2 on Development of Small-scale Aquaculture and Component 3 on Project Management.

4. Component 1 will support activities to achieve the following four outputs: (i) institutional capacitystrengthened (national, provincial, local/extension service); (ii) improved community participation ineconomic and wider local development processes; (iii) increased quantity and quality of fish producedand sold on a sustainable basis; and (iv) improved market related infrastructure. Component 2 willhave similar outputs (i) to (iii). Both components will have to ensure that the production of fish fromboth fisheries and aquaculture will be in line with the demand of the local market, in quantitative andqualitative terms.

5. The project area is circumscribed to 12 comunas of 3 Municipalities in the Provinces of Bengo,North Kwanza and Luanda, for inland fisheries; and 1 Municipality (Malanje), for aquaculture, asindicated in the table below:

Province Name Target MunicipalitiesBengo Barra do Dande, Caxito, Malaibas and UcuaLuanda Bom Jesús, Cabiri, Calomboloca and CateteNorth Kwanza Zenza do Itombe, Nguimbi Songo and DondoMalanje Malanje

General Objective Of The Census

6. During the design of the Project, it has been observed that the information which wouldnormally be required for such a process is very limited and often not reliable. In particular nosystematic census has ever been carried out on inland fisheries (the last census done on the coastdates back to 1998). There is no information on the number of fishing communities, their population,the number of fishers, fish processors and traders, and on the fishing crafts and gears used; the onlyinformation available is related to the fishing cooperatives, and is of questionable quality.

7. The objective of the census is therefore to give a complete picture of the fishing communitiesand its main characteristics in the project area (i.e. in the target municipalities of Bengo, Luanda andNorth Kwanza), at project start. Logically, this activity should be repeated at the end of the project, soas to assess the evolution of the fishing capacity along the project’s lifespan.

Methodology

8. The census will be carried out under the responsibility of the PCU of the Project, It will besupervised by the project’s Fisheries Technologist who will be part of the PCU. The field work (fillingof questionnaires) will be done by provincial teams, made up of a team leader (the IPA representativeor the responsible for fisheries from the Provincial Department of Agriculture and Fisheries) andinterviewers (IPA extension workers and fisheries staff from the respective provinces).


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9. The logistics of the fieldwork will be organized, using the equipment supplied through theProject (namely vehicles, motorcycles and boats). During an initial contact by one of the teammembers in their respective zones, all fishing communities will be informed on the objectives andprocess of the census prior to its actual implementation; on this occasion, key informants will beidentified and contacted, so as to be subsequently involved during the census.

10. Data processing and analysis will be subcontracted to a specialized firm, selected locallythrough competitive bidding, on the basis of technical competence, previous experience and provenability in the field of data processing and analysing in Angola. It will be involved in the process ofdefinition, testing and finalization of the questionnaires.

11. On the basis of the data compiled by the contracted firm, the Fisheries Technologist, assistedby the whole census team, will be in charge of producing the census report.

12. Support will be sought from a foreign entity with experience in carrying out artisanal fisheriescensus. One possible partner is the Mozambican Small-scale Fisheries Development Institute(IDPPE), which has been supported by IFAD over the last fifteen years and has acquired a very solidexperience in terms of fisheries census, carried out regularly on a five-year basis nationwide (for bothmarine and inland artisanal fisheries) since 1992. As part of knowledge sharing, one key resourceperson from such an institution will support IPA and the project at the various stages of the process.

Phases and Timeline of the Census

13. The census will be carried out in four distinct phases: (i) preparation; (ii) implementation; (iii)data processing; and (iv) report writing. The table below outlines the main activities to be carried out ineach phase:

Phase Activities DurationPhase 1:Preparation Preparation of survey questionnaires

Training of field personnel Contact with local authorities and key

informants in the fishing communities Field testing of questionnaires Finalization of questionnaires Preparation of all census material and logistics

1 month

Phase 2:Implementation Implementation of census by the provincialteams in all fishing communities

Regular transfer of filled-in questionnaires tothe specialised data firm

1,5 month

Phase 3: Data processingand compilation

Data entry (*) Quality check in data registry (*) Production of main data tables (*)

1 month

Phase 4:Presentation offindings and report writing

Presentation of preliminary findings (*) Analysis of survey results (*) Elaboration of draft report by TA of PCU/IPA Workshop for presentation of draft report Submission of census final report

2 months

(*) responsibility of the subcontracted data firm


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Attachment 2: Market Survey on Fish Supply and Demand from Small-scale Inland Fisheriesand Aquaculture

Draft Terms of Reference

Background

1. IFAD has been supporting the artisanal fishery sector in Angola since 1991 through consecutiveloans. The newly formulated “Artisanal Fisheries and Aquaculture Project” (2015-2019), will build onthe work, successes and lessons learned from the previous IFAD-supported projects, with the aim ofpromoting improved livelihoods and food security of poor households involved in artisanal and fishingfish farming activities in Bengo, Luanda, Kwanza North and Malanje provinces. IPA is the nationalinstitution responsible for the project implementation, within the Ministry of Fisheries.

2. The Project will be financed with an IFAD loan and will be co-financed by the Government ofAngola. The Component 1 of the Project will focus on Development of Inland Artisanal Fisheries,Component 2 on Development of Small-scale Aquaculture and Component 3 on Project Management.

3. Component 1 will support activities to achieve the following four outputs: (i) institutional capacitystrengthened (national, provincial, local/extension service); (ii) improved community participation ineconomic and wider local development processes; (iii) increased quantity and quality of fish producedand sold on a sustainable basis; and (iv) improved market related infrastructure. Component 2 willhave similar outputs as (i) to (iii). Both components will have to ensure that the production of fish fromboth fisheries and aquaculture will be in line with the demand of the local market, in quantitative andqualitative terms.

4. Data on fish catch and markets are scarce in Angola (and basically non-existent as far asinland fisheries are concerned); there is no system in place to make sure that the evolution of fishprices and quantities sold at the producer’s and intermediary’s levels as well as in the major consumermarkets are gathered and analysed. Some major food commodities are followed by the ProvincialOffices of Agriculture and Fisheries, but they do not include fish. One relatively recent source (FisheryCountry Profile - FAO - December 2007) relates that the average fish consumption per capita is about15.7 kg per year in the country. The Project will contribute for a better understanding and analysis ofthe fish market trends, particularly on the project area.

Objective

5. The general objective of the present market survey is to i) identify current and future demandfor inland water fish (tilapia as a major commodity, and other species) at national and local level, ii)analyse the potential impact of the proposed marketing/value chain activities of the project on themarket and estimate the effects on prices of an increased supply of fish, for both fresh fish andtraditional products; and iii) set up the system for data collection of fish prices on main landing sitesand markets of the project area (as a complement to the system to be established for collection ofdata on fish catches).

Expected results and specific tasks:

6. The survey will focus on all product groups sourced from project activities (including fresh fish,salted-dried and smoked fish) as well as imported fish (such as frozen horse mackerel and tilapia) andall types of marine fish from national fleets (fresh, frozen and traditional products) which reach thehinterland; possible export channels will be searched into as well. The target market groups will coverthe range of income groups from the fishing communities (according to the three socio-economiccategories defined in the project area) to the principal urban markets of this area.

7. The survey will in particular:

Design a basic value chain mapping, identifying key functions at each stage of the value chain;

Identify the current problems and identify the main constraints / opportunities in handling,processing and marketing of fresh and traditionally processed fish from small-scale inlandfisheries and aquaculture, nationally and more specifically in the project area;


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Investigate /define the structure of the distribution chain in the project area, from catch tomarkets (types and numbers of actors, end markets, quantities), for local products and thosecoming from the coast;

Investigate prices throughout the distribution channels; review costs and margins associatedwith the process on national markets;

Analyse the decision-making process when purchasing fish: price, quality of fish,presentation, product preference, species preference, price of competing products; assessthe competitiveness/complementarity of freshwater fish vs. marine fish, of fish vs. non fishproducts;

Identify and analyze potential markets to be developed (for traditional and fresh products, onlocal and possibly regional markets), and conditions thereof; and

Assess the potential competition of frozen imported tilapia as regards the additional localproduction in the project area and, if needs be, propose limitation measures in line with thoseintroduced by the Ministry of Fisheries on horse mackerel import to protect the nationalproduction.

Methodology and organization of the survey

8. The survey will cover the four provinces covered by the project, and will be carried out over atotal period of 3 months; it will be divided in 3 phases: Phase 1 (3 days in Luanda): collection andanalysis of the existing information with the main parties involved (IPA, MdF); Phase 2 (3 weeks): fieldwork, covering all 4 provinces and the city of Luanda; and Phase 3 (4 weeks): preparation of aPreliminary Report; presentation of this report in a workshop to be held in one of the project provincialcities, The final report will thereafter be prepared and validated.

9. The survey will be carried out by a team of two consultants with recognized competence andexperience in fish technology, value chain analysis methodology and analysis of markets for fisheriesproducts, particularly in Central and Southern Africa. One international consultant, leader of the team,will more specifically be in charge of the overall methodology of the survey and outputs thereof andone national consultant will be responsible for data collection and compilation. The team will work inclose collaboration with IPA staff at national and provincial level and the Provincial Delegations forAgriculture and Fisheries.

On the basis of the present ToR, a follow-up survey will be carried out by mid-project, then an EOPone.


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Appendix 5: Institutional aspects and implementation arrangements

Organization of the project and institutional responsibilities

1. Ministry of fisheries. The Ministry of Fisheries (MdP) is responsible for the supervision of theProject, chairing the Project Oversight Committee (POC) and assuring the consistency of the Projectwith the policy of the Government. The MdP will be responsible for policy and legislative initiatives thatpertain to the Project and for promoting any institutional adjustments in the sector administration, aswell as for the coordination with relevant ministries and provincial governments. The Ministry will alsobe responsible for ensuring that counterpart funds and agreed contributions from government are dulybudgeted. The Finance Department of MdP is responsible for giving final approval to requests to IFADfor ‘no objection’ regarding the Annual Work Plan and Budget (AWPB), Procurement Plan andcontracts.

2. The implementation of the Project will be undertaken by the Institute for the Development ofArtisanal Fisheries and Aquaculture (IPA). The IPA is an institution subordinated to the MdP withadministrative and financial autonomy. It is headed by a General Director (GD), who is assisted by twodeputies. The GD is also assisted in his (her) duties by a Directory Board and a Technical AdvisoryCouncil.

3. Project oversight structure. Reporting on physical and financial progress will comply withinternal IPA requirements and also feed into the project monitoring system. The following levels ofmonitoring and coordination are: (i) Project Oversight Committee (POC), (ii) Steering Committee, inIPA and (iii) provincial coordination meetings in each of the four provinces where the project developsactivities.

4. The POC will be created and chaired by the MdP. The main responsibilities of POC will be: (i)guiding project implementation strategy and supervising project planning, (ii) reviewing AWPBs andprocurement plans before they are submitted to IFAD and (iii) examining the progress inimplementation and impact. It will also discuss and provide guidance on any issues that may beconsidered relevant for the success of the project. The POC will meet normally twice a year andadditionally whenever necessary.

5. The POC membership will include representatives from agencies that are directly involved in theimplementation of the Project. These are: (i) the Minister of Fisheries, (ii) the Secretary of State ofFisheries, (iii) a representative of the Ministry of Finance, (iv) the Financial and Planning directors ofMdP, (iv) the General Director and the heads of the executive departments of IPA and (v)representatives of the provincial governments. In addition, a representative of IFAD and the projectcoordinator would be invited to participate as non-voting members.

6. The Directory Board of IPA will dedicate four working sessions per year to monitor the progress ofthe Project. These sessions will: (i) review progress in implementation, (ii) decide on any correctivemeasures that may be required to achieve the project targets and (iii) review all the subjects andinformation to be presented to POC, including AWPBs and procurement plans and the progressreports of execution of the Project.

7. In order to achieve the needed coordination with the provincial governments, a coordinationmeeting will take place at the provincial level. These meetings will be part of the process forformulation of the AWPBs and preparation of the annual reports on the progress of the project. Thesemeetings will involve the provincial directors of Agriculture and Fisheries (North Kwanza and Luanda)and Fisheries (Bengo and Luanda), municipal administrator(s) and comuna administrators, IPAprovincial representatives, the project coordinator, selected PCU staff and representatives from thefishing communities where the project develops its activities. Meetings will be held twice a year.

8. Project coordination unit (PCU). A Project Coordination Unit (PCU) will be set up within IPA inLuanda. This unit will be dedicated to coordinating, programming, budgeting, allocating resources,monitoring and providing information for the evaluation of the project and its management. The unitwill undertake the coordination and implementation of all project activities. The IPA representations inthe provinces will implement the core activities with the support of IPA central departments and thePCU. The project activities promoted by the PCU would be undertaken under the followingcomponents: (i) Development of Inland Artisanal Fisheries and (ii) Development of Small-scaleAquaculture.


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9. The PCU staff will include: (i) a coordinator (see ToRs in Attachment 2), (ii) an expert inprocurement, (iii) a fishing technology specialist, (iv) an aquaculture specialist; (v) a communitydevelopment specialist, (vi) an M&E specialist; (vii) a financial and administration manager; (viii) anaccountant; (ix) an administrative assistant; and (x) 2 drivers and one boat operator. PPMUs will bereplicated in each province to enhance decentralization with a provincial coordinator, M and E officer,accountant and fisheries specialist, community development officer, aquaculture specialist. The finalsstructure will be firmed up during loan negotiations.

10. Institute for the development of artisanal fisheries and aquaculture (IPA). The IPA has theoverall responsibility for promoting the development of artisanal fisheries and small-scale aquaculturein Angola and thus for the project. The PCU will work under the supervision of the General Director ofIPA. The central departments of IPA will need to ensure that project implementation reflects theobjectives defined by the Government for the sector, through the above-mentioned monitoringarrangements.

11. Other institutions from the fisheries sector. It is expected that the National Institute ofFisheries Research (INIP), National Service of Fisheries Surveillance (SNFPA) and National Instituteof Assistance to Fishing Industry and Technological Research (INAIP) would participate in theimplementation of some of the project activities. Their roles would likely entail the following: (i) INIP forany biological sampling and collection of related environmental and climate change adaptation datathat the Project may promote under the monitoring system (INIP was involved in the past in inlandresearch missions aiming at identifying endemic species and studying the biodiversity in the projectarea, particularly in the Kwanza River and Lake Ngolome); (ii) SNFP may be called on to advise onlocal arrangements to guarantee their compliance with fishing management measures; and (iii) INAIPcould play a role in providing technical training on post-harvest techniques to Fishers targeted by theproject.

12. In addition to the entities mentioned above, NGOs, private firms and individuals would likely beinvolved in the implementation of non-core activities of the project and Provide services as needed.Although the number of organizations identified in the project area is low, it is expected that othersmight be interested to establish a presence in the project area.

13. Provincial directorates for agriculture and fisheries (inland provinces) and fisheries(coastal provinces). In each of the four project provinces the provincial directorates are responsiblefor the fisheries policy and legislation issues relating to their respective province, as well as the overallcoordination of the actions carried out by the fisheries institutions present. Project activities will beimplemented in municípios, comunas and fishing communities. The involvement of the provincialdirectorates will be important but their role will be mainly one of coordination and guidance.

14. It is crucial that the coordination with these entities be guaranteed by the PCU with the assistanceof IPA. As a result of community development activities, proposals would in principle be brought to theattention of the local authorities. In particular, in the preparation of the AWPBs and any proposals forthe inclusion of social investments in the Integrated Municipal Programme for Rural Development andPoverty Alleviation. It would also be important to establish links with the local Consultation and SocialDialogue Council (CACS) that brings together the main players present in the município and has therole of advising the municipal administrator. The Project would also support an increased participationby the comuna and município in giving continuity to the efforts initiated by the project.

15. Ministry of Finance (MdF). The MdF is responsible for financial supervision for all governmentprogrammes. It will supervise the budget process and the allocation of project financing from externalsources.

16. Collaboration with other developing projects and agencies. Two ongoing projects – FAO TCPin Lake Ngolome and AfDB Fisheries Development Project – represent opportunities to shareexperiences, information and combine efforts in actions of common interest; both are implemented byIPA. In particular, the AfDB project is of interest as its implementation will likely coincide with thepresent project. Regarding the FAO project, it will be close to completion at the start of projectimplementation but relevant findings and “lessons learned” could still be useful and applied. FAOwould also offer other opportunities regarding the set up of the monitoring system for the inlandartisanal fisheries and small-scale aquaculture and through the establishment of an agreement withIPA for the implementation of Component 2 (Development of Small-scale Aquaculture). A DevelopmentPlan for Artisanal Fisheries (“Plano de Desenvolvimento da Pesca Artesanal”), amounting to USD 32


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million and financed from national resources, has recently been approved by the GoA. It covers bothmarine and inland fisheries. As far as inland fisheries is concerned, the Plan focuses on 5 priorityprovinces (Bié, Uige, Lunda Norte, Cuanza Norte and Bengo). The latter two provinces are beingcovered by the AFAP too. Since the objectives of the Plan are quite similar to those of AFAP, closeinteraction will need to be secured, and potential synergies and complementarities explored.

17. The aquaculture centre in North Kwanza, which is presently under construction for the futureproduction of fingerlings and fish feed, also represents an opportunity for collaboration with the Projectand to influence the configuration of the planned hatchery.

Implementation of project components

18. The overall organisation chart for implementation is shown in Attachment 1. Detailed modalitiesof implementation are summarized below. In what concerns project providers, organisations would beselected on a competitive process by IPA/PCU according to the assessment made on their capabilitiesand experience in providing the services required. Assistance from the Project to enhance theirknowledge on the fisheries sector can be envisaged. It is expected that other entities, includinggovernment agencies, firms and individual consultants would be included.

Component 1: Development of Inland Artisanal Fisheries

19. Output 1.1 for Institutional Strengthening will be implemented primarily by organizations, firmsand individuals capable of providing services in the project area, covering: (i) advice for conducting acensus of the inland artisanal fisheries, (ii) estimate of fishing potentials and (iii) establishingmonitoring and management systems. Activities aimed at strengthening IPA (e.g. training of IPA’stechnical staff and extension agents) will be conducted directly by the PCU specialists.

20. Output 1.2, for Integrated Community Development. Under this Output the Project will support:(i) information on HIV prevention; (ii) awareness-raising on climate change and sustainable use of theresource base; (iii) raising awareness on the danger of mines; (iv) gender dimensions; (v) food securityand nutrition education raising awareness to ensure a link between food availability, access andconsumption; (vi) literacy; and (vii) supporting entrepreneurship. These activities will be implementedthrough a contracted service provider. The provider will support individual communities over the courseof three years, covering the issues to be described in a curriculum. Municipal governments will also betargeted as relevant to support this local government body and the CACS, strengthening its capacity toassume a decentralized management role. Men, women and youth will be included in thesecommunity development activities.

21. Output 1.3 on Quantity and Quality of Fish Produced and Sold covers core activities of IPA. Themain activities will be: (i) technical training of Fishers; (ii) training of fishers, fish processors and tradersin fish handling, conservation and marketing techniques and good practices; (iii) dissemination of theuse of ice and related equipment; (iv) production of training materials; and (v) radio/TV broadcastprogrammes. With the exception of a market study to be conducted by a team of consultants at thestart of the Project, all the remaining Output activities will be implemented by IPA’s technical staff fromthe central departments and extension agents and supported by PCU specialists.

22. IPA will implement output 1.4, for Market Related Infrastructure, with the assistance of PCU. Theactivities under this Output are: (i) construction of handling/processing facilities in landing sites alonglakes; (ii) loading/unloading sites and markets along major rivers; (iii) repair/rehabilitation of tertiaryroads; and (iv) definition of models for the management and maintenance of project-supportedinfrastructure. Implementation will require complex coordination efforts with municípios and comunaswhere the investment is located; it also require coordination with the Ministry of Fisheries/NationalDirectorate of Infrastructure and Fishing Industry and the ministries in charge of infrastructure,commerce and transport in order to ensure that all technical norms are respected in investmentsinvolving construction of facilities. These investments will be subject to tender and the contractorsselected in accordance with the national procedures provided that they meet IFAD requirements. Asfar as the management of market infrastructures in landing sites is concerned, IPA, with thecollaboration of the local authorities, will lead the process of empowerment of local managementcommittees. Where considered appropriate, the process will focus on the selection/engagement ofprivate sector operators to manage the infrastructures.


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Component 2: Development of Small-scale Aquaculture

23. Output 2.1 on Institutional Capacity Strengthened will be implemented by IPA AquacultureDepartment technical staff with assistance from the PCU aquaculture specialist. It will cover training ofextension agents, preparation of manuals on construction, management and reproduction of fish inponds. Nevertheless, a service provider (organization, firm or individual) will be required to assist inthe revision of the manuals and to set up the aquaculture monitoring system.

24. Output 2.2, on Participation in Local Development Processes. Under this Output, the Project willsupport: (i) information on HIV prevention; (ii) awareness-raising on climate change and sustainableuse of the resource base; (iii) raising awareness on the danger of mines, (iv) gender dimensions; (v)food security and nutrition education raising awareness to ensure a link between food availability,access and consumption; (vi) literacy; and (vii) supporting entrepreneurship. It will be implemented at alater stage of the Project thru a service provider to support communities with aquaculture activities toincrease their awareness of risks they face and identify their priorities to improve their living conditions.The Project will assist the communities to submit their proposals to the municipal governments, as wellas to CACS.

25. Output 2.3, for Quantity and Quality of Fish Produced in Ponds and Sold will be implementedthrough the coordination of the PCU. However, some studies to be undertaken in the first year of theProject will require the involvement of service providers. These are: (i) although the mapping of areaswith high potential for aquaculture in North Kwanza will be undertaken by FAO at the request of theMinistry of Fisheries, the Project may build on this initial experience and expand it to other participatingprovinces; (ii) identification of communities and households with high potential areas to be targeted bythe Project, taking into account pre-identified criteria. Additionally, technical assistance activities will beundertaken by the IPA extension agents in support of fish farmers for the: (i) construction of ponds(including supply of tools), (ii) initial pond production (including supply of fish feed and fingerlings) and(iii) pond management. The previous activities require the identification of suppliers followingprocedures already referred to service providers in general.

26. Output 2.4, on Hatchery Infrastructure, will be implemented through IPA with the assistance ofthe aquaculture specialist and a consultant. It would require the involvement of a contractor to restorethe Malanje hatchery (repairing of the drainage canal, finishing the construction of 4 ponds andrehabilitating other 4 small ponds) and a supplier (equipping the laboratory, operational equipment).The following activities will need the engagement of service providers: (i) training of the extensionagents on production of fingerlings; (ii) training of government staff on hatchery management (iii) studyon fertilizers and fish feeds; (ii) study on fish farming in cages by households; and (iii) feasibility studyon the production and supply of fish feed to fish farmers.

Component 3: Project Management

Component 3 provides for the staff and operating costs of the PCU, which will have the overallresponsibility for project implementation. PCU composition includes: (i) a coordinator; (ii) an expert inprocurement; (iii) two specialists for Components 1 (Inland Artisanal Fisheries) and 2 (Small-scaleAquaculture) respectively, who will be responsible for the implementation of most of the Project’s coreactivities, the identification of potential partners and service providers, overseeing the contractingprocess of service providers, training of extension agents and technical staff of IPA and monitoringprogress in implementation; (iv) an M&E specialist that will coordinate the preparation of the AWPBs,establish an MIS system, and monitor project progress and results; Knowledge Management andCommunications would also be committed to this specialist who would be responsible for compilingand disseminating knowledge from lessons learned through project implementation, andcommunicating project objectives and accomplishments to key stakeholders and the general public;(v) a financial manager; and (vi) other auxiliary staff (administrative officer, two drivers and one boatoperator).

Main risks and mitigation measures

27. The risks associated with institutional aspects and implementation arrangements and thecorrespondent mitigation measures are the following:

Government may not be able to allocate the resources required to support therecruitment of the additional field agents and equipping them with motorcycles. The


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intensification of artisanal fishing and aquaculture operations and subsequent promotion ofmarketing activities would imply a substantial increase in the number of extension agentsbased in the IPA representations of the four provinces. Mitigation: The Project willcontribute to minimize this problem by supporting the salaries of the agents in the first yearand providing the required 4WD vehicles and motorcycles.

There is a possibility that the expansion of fishing operations could be conducted inareas where the resource is already under significant fishing pressure. As a result ofproject-supported intensification in combination with weak management control in theproject area, the pressure on the resources would likely increase. Moreover, theidentification of specific project areas where intensification of fishing operations will takeplace has yet to be selected. Furthermore, it is highly unlikely that there will be anybaseline information for these sites and existing research capacity is low. Mitigation: TheProject will take a cautious approach towards the expansion of fishing operations andprovide funds for relevant studies to estimate potential and set up a monitoring system forthe inland fisheries. Even with the information on the fishing potentials at the beginning ofits implementation it is not expected that the first data for the purpose of assessing thestatus of the fisheries would be available before PY 3 years.

There is a possibility that service providers cannot be found in the project area,especially for community development activities. The presence of service providers inthe rural areas of Angola is very low and the prevailing conditions are not favourable.Mitigation: (i) Strengthening institutional capacity of these service providers and supportthe establishment of their presence in areas where their services are required (ifnecessary); (ii) Negotiating with service providers operating in neighbouring countries mayalso provide a solution in combination with measure (i).)


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ATTACHMENT 1: ORGANIZATION CHARTS

Ministry of Fisheries


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Institute for the Development of Artisanal Fisheries and Aquaculture

Project Organization Chart

Luanda

Kwanza North

Malanje

IPA Representation

Div. Support toCommunity

Development

MINISTRY OFFISHERIES

MINISTRY OFFINANCE

MINISTRY OFINFRASTRUCTURE

MINISTRY OFTRANSPORT

GeneralDirector

Depart. ofAquaculture

DeputyDirectors (2)Directory

Council

TechnicalAdvisory Council

SupervisionCouncil

Office of Supportto the General

Director

Dep.Administration

and GeneralServices

Depart. ofStudies and

Projects

Div. Studies & Projects

Depart. ofSupport to

FishingCommunities

Div. Extension

Div. of Statistics

Div. Infrastructureand Proj. Monitoring

Centres ofIntegrated Support

to ArtisanalFisheries

Centres forResearch and

Development ofAquaculture

Div. Mariniculture

Div. Inland Aquaculture

ProvincialDirectorates ofAgriculture and

FisheriesBengo

IPA-HQPROJECTSTEERING

COMMITTEES


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HEADS OFFISHERIES

PROVINCIALDIRECTORATES

ARTISANAL FISHERS &SMALL SCALE FARMERS

Existing households

MUNICÍPIOSIntegrated Municipal

Programmes forRural Developmentand Combat Hunger

MINISTRY OFCOMMERCE

IPA PROVINCIALREPRESENTATIONS

IPA extensionagents

CONTRACTED NGO//SERVICE PROVIDER

implementation of activitiesout of the core of IPA


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ATTACHMENT 2: DRAFT TERMS OF REFERENCE FOR THE PROJECT MANAGEMENT UNIT

DRAFT TORS: PROJECT COORDINATOR

Background and General Information

IFAD has been supporting the artisanal fishery sector in Angola since 1991 through consecutiveloans. The newly formulated “Artisanal Fisheries and Aquaculture Project” (2015-2019), will build onthe work, successes and lessons learned from the previous IFAD-supported projects, with the aim ofpromoting improved livelihoods and food security of poor households involved in artisanal and fishingfish farming activities in Bengo, Luanda, North Kwanza and Malanje provinces. IPA is the nationalinstitution responsible for the project implementation, within the ministry of Fisheries.

The Project will be financed with an IFAD loan and will be co-financed by the Government of Angola.The Component 1 of the project will focus on Development of Artisanal Fisheries, Component 2 onDevelopment of Small-scale Aquaculture and Component 3 on Project Management. The Outcomes ofthese components would respectively be: (i) ‘Inclusive, sustainable inland fisheries subsectormanagement and development’ and (ii) ‘Promotion of inclusive, sustainable small-scale aquaculturesector management and development’. In order to achieve outcome 1, the following outputs would berequired: (1.1) ‘Institutional capacity strengthened’; (1.2) ‘Improved participation in local developmentprocesses’; (1.3) ‘Increased quantity and quality of fish produced and sold on a sustainable basis’;and (1.4) Improved market related infrastructure. And for outcome 2: (2.1) ‘Institutional capacitystrengthened’; (2.2) ‘Improved participation in local development processes’; (2.3) ‘Increased quantityand quality of fish produced in fish ponds and sold on a sustainable basis’; and (2.4) ‘Governmenthatchery infrastructure effectively provides project clients with required inputs’.

The total costs of the Project are estimated in about USD 10.4 million, to be financed by an IFAD loan(9.4 million USD) and the Government of Angola (1.5 million USD). The total management costs areestimated to be about USD ... million USD. The detailed costs for each of these items are presented inAppendix ... (Project Costs and Financing).


As described in detail in Appendix 5 of the Project Design Report.

Background Qualifications and Experience of the Project Coordinator

The specialist should have a university degree in economics or sociology, with ten years workexperience, of which at least five years of practical experience is in management positions. He/sheshould have a sound knowledge of financial management, procurement and administrative systems,fishing, aquaculture, fish value chains and community development. He/she should have proactiveand problem solving skills, proven ability to lead a team of people with various backgrounds andcommunicate effectively with senior government officials and development partners. Goodcommunication skills, written and verbal and fluency in both English and Portuguese.

Duty station

The duty station will be located in Luanda in Angola, and the total duration of contract of five years. Itis estimated that the Project Coordinator would be present at least half of time in the projectmunicípios of Caxito, in Bengo Province, Icolo e Bengo, in Luanda Province, Cambambe, in KwanzaNorth Province and Malanje, in Malanje Province to support PPMUs.

Scope of Technical Services

The objective of the assignment is to assist IPA with the managing of the project in order to ensurethat the implementation will be efficiently conducted and the objectives of the project effectivelyachieved. In particular s/he shall:

Establish the financial and administrative systems of the PCU; Ensure that the project objectives are effectively achieved within the proposed time frame;


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Contribute to the institutional strengthening of IPA and its representations in order to enablethe institution to sustain the activities developed by the project;

Prepare the Project Implementation Manual (PIM), covering planning, budgeting,implementation and monitoring procedures for the project activities;

Ensure that the preparation of the annual work plan is made in coordination and throughconsultation with the stakeholders and in accordance with the project objectives, outcomes andoutputs;

Prepare the annual work plans, budgets, procurement plans and progress reports andsubmit them to the national director of IPA, the steering committees and the developmentpartners for obtaining ‘no objection’;

Assume all the responsibility for the procurement of the project; Attend the meetings of the steering committee and report on the progress of the project

works; and Ensure that the estimates of cash and disbursements are in accordance with the needs of

the project and that the financial and accounting follow the systems procedures.


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DRAFT TORS: FISHERIES TECHNOLOGY SPECIALIST


IFAD has been supporting the artisanal fishery sector in Angola since 1991 through consecutiveloans. The newly formulated “Artisanal Fisheries and Aquaculture Project” (2015-2019), will build onthe work, successes and lessons learned from the previous IFAD-supported projects, with the aim ofpromoting improved livelihoods of poor households involved in artisanal and fishing fish farmingactivities in Bengo, Luanda, North Kwanza and Malanje provinces. IPA is the national institutionresponsible for the project implementation, within the ministry of Fisheries.


The total costs of the project are estimated in about USD 104 million, to be financed by an IFAD loan(9.4 million USD) and the Government of Angola (1.5 million USD). The total management costs areestimated to be about USD ... million USD. The detailed costs for each of these items are presentedin Appendix ... (Project Costs and Financing).



Background Qualifications and Experience of the Fisheries Technology Specialist

The specialist should have a proven training experience in innovative and selective fishing,processing and conservation techniques. S/he should have working experience in artisanal fisheries,and experience in promoting/improving fishing techniques and good practices in general to fishermen,especially those that are more adapted to inland waters, such as gillnetting, long lining and traps; s/heshould also have working experience in promoting/ improving fish processing, conservationtechniques and good practices in general to processors, mostly women, on dried/salted and smokingmethods as well as on fish handling with ice. The specialist should have proven training andcoordination skills to organise the work of teams operating in remote locations. Furthermore, thespecialist should have a basic knowledge on fishing management of sustainable artisanal fisheriesand be able to work with Fishers community organisations. The specialist should be fluent inPortuguese and have excellent communication skills.

Duty station

The duty station would be located in Luanda, in Angola, and the total duration of contract of five years.It is estimated that the fisheries technology specialist would be most of the time in the projectmunicípios of Caxito, in Bengo Province, Icolo e Bengo, in Luanda Province and Cambambe, inKwanza North Province.

The Specialist will work with IPA central departments and provincial representations; s/he will beexpected to train technicians and fisheries extension agents to a level that enable them to execute theproject activities, especially the ones under Outputs 1.1, 1.3 and 1.4, and to proceed with thembeyond the Year 5 of the project.



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To contribute to the institutional strengthening of IPA and its representations in order to enable theinstitution to implement the activities developed by the project and sustain them in the future. Inparticular s/he shall:

Promote and provide training in fishing and fish technologies aiming at improving fishing andpost-harvest activities;

Identify opportunities based on feedback from site visits and collected information; Undertake field training exercises to ensure that the technologists and extension agents

perform with competence and detect weaknesses in the extension system; Participate in the process of site selection, design and construction of the

handling/processing and market infrastructures supported by the project (in landing sites in lakesand along the river Kwanza), making sure they are adequately designed and built; support thelocal communities and authorities for their proper management and maintenance.

Lead the demonstration activities aiming at the promotion of improved equipment andmaterial for fish handling and processing; lead the process of developing Income GeneratingActivities on the basis thereof.

Analyse on-going boat building activities and maintenance practices, providerecommendations for its improvement and follow their implementation;

Contribute to the preparation of the project annual work plan through consultation withfishermen, fish processors and traders;

Work collectively with other project team members for a more effective implementation ofthe project activities.


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DRAFT TORS: AQUACULTURE EXPERT




The total costs of the project are estimated in about USD 10.4 million, to be financed by an IFAD loan(9.4 million USD) and the Government of Angola (1.5 million USD). The detailed costs for each ofthese items are presented in Appendix ... (Project Costs and Financing).



Background Qualifications and Experience of the Aquaculture Expert

The candidate should have a Master’s degree in Aquaculture or in a similar subject but with specifictraining and experience in Aquaculture. Other qualifications include:

At least eight years of work experience, including at least four working with small-scaleaquaculture, preferably in Africa;

Capable to work under difficult conditions in Malanje; Strong managerial skills and demonstrated capacity to manage people and interact with a

wide range of private sector partners, public sector representatives, and developmentpartners;

Self-motivated, with demonstrated ability to take initiatives and work under a minimum ofsupervision, but also to work effectively as a member of a team;

Excellent oral and written communication skills in English. (Oral and written communicationskills in Portuguese are essential as Portuguese will be the working language); and

Computer-literate and well versed in the use of Word, Excel and the Internet.

Duty station

Within the “Artisanal fisheries and aquaculture project in Angola” the Aquaculture expert has theoverall responsibility for the implementation of the Aquaculture Subcomponent (AS). The AS will beimplemented in the Angolan provinces of Malanje, North Kuanza and Bengo. The aquaculturedevelopment activities will start in Malanje, where also AS head-office will be seated as well, while atthe second half of the five year project also the provinces of North Kuanza and Bengo will be covered.The Aquaculture Expert reports to the Project Coordinator of the Project in Caixito / Dondo andsupervises the work of an team of eventually seven aquaculture extension workers working in therural areas of three provinces to promote, introduce and develop small-scale family aquacultureactivities.



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Specific responsibilities include but are not limited to the following:

Oversee the potentials and limitations of the development of small-scale family aquaculturein Angola;

Organize office space for the AS team and storage room; Planning, management and reporting of all activities of the AS team; Facilitate the identification of areas of major potential for aquaculture development through

interpretation of the results of a mapping study (probably executed by FAO) and subsequentfield visits for identifications of potential aquaculture communities;

Recruitment of aquaculture extension workers and train them (on the job) in areas relevantfor their work in the field, such as pond construction, pond management, fish feeding &growth and fish reproduction;

Facilitate the training of extension workers in skills necessary to deal with and motivate ruralfamilies;

Oversee the work of an (external) service provider and extension workers to attendcommunity needs and organize fish farmers groups;

Coordinate the distribution of the goods and equipment for pond building and pond stocking(pond construction kits and pond stocking kits), including their purchase and storage;

Initiate and guide construction of a hatchery for the production of tilapia fingerlings and afeed mill for the production of some local made fish feed;

Coordinate the production of manuals made by and used by extension workers on thefollowing issues: pond construction, pond management, fish feeding & growth and fishreproduction;

Manage special studies to be undertaken, including preparation of TORs and overseeing thework of the consultants; and

Liaise with Ministry of Fisheries employees and contribute to their efforts to rewrite theFisheries Law and Regulations and update their national aquaculture development strategy.


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COMMUNITY DEVELOPMENT OFFICER

Background and General InformationIFAD has been supporting the artisanal fishery sector in Angola since 1991 through consecutiveloans. The newly formulated “Artisanal Fisheries and Aquaculture Project” (2015-2019), will build onthe work, successes and lessons learned from the previous IFAD-supported projects, with the aim ofpromoting improved livelihoods of poor households involved in artisanal and fishing fish farmingactivities in Bengo, Luanda, North Kwanza and Malanje provinces. IPA is the national institutionresponsible for the project implementation, within the ministry of Fisheries.


The total costs of the project are estimated in about USD 10.4 million, to be financed by an IFAD loan(9.4 million USD) and the Government of Angola (1.5 million USD). The detailed costs for each ofthese items are presented in Appendix ... (Project Costs and Financing).

The improvement of livelihoods and food security in target inland fishing communities cannot beattained through addressing the technical fisheries and market failures identified on the ground aloneor just by successfully introducing aquaculture among small-scale agricultural communities. Ruralhouseholds in the target area face many competing priorities to meet daily needs, accessing distantservices under extremely difficult conditions and with limited skills. In recognition of this fact, theproject developed a four-prong social approach that aims to address the multiple challenges affectinglivelihoods, food security and poverty, while at the same time recognizing the varying degrees ofhousehold vulnerability at community level:

a) Equity targeting: aims to ensure that interventions reach social strata most in need,according to pre-defined criteria to maximize sustainability of project investments. Theseactivities will be complemented by other activities targeting all socio-economic groups inthe community. Gender and age quotas will be established for all activities, as relevant toensure that women, men and youth all enjoy the benefits of the project in equal terms.

b) Incorporation of community development interventions: communities as a whole will bereached by awareness-raising interventions on key issues (climate change, mines,HIV/AIDS, gender, food security), through the presence on the ground of a facilitator froma service provider. This person will also implement nutrition education activities, and willbe involved in the elaboration and dialogue with authorities for the elaboration ofcommunity development plans. Entrepreneurship targeted activities will includesavings/credit groups and household level projects among those that most need it.

c) Incorporation of functional literacy services for men, women and youth in targetcommunities

d) Using participatory project planning, monitoring and evaluation processesImplementation Arrangements


Background Qualifications and Experience of the Community Development Officer


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IFAD will hire a competent, energetic and committed individual interested in leading the ambitioussocial component of this artisanal fisheries project. The incumbent will need be expected to meet thefollowing requirements: University degree in sociology, anthropology, international or rural development; At least seven years of experience and excellent track record in managing community

development projects; and Proficient in Portuguese, working knowledge of English desirable.


The project will be managed through a Project Management Unit within IPA. The project is looking fora competent and experienced Community Development Officer to lead all social activities in thecontext of the project. Specifically the incumbent will be responsible for:

Collaborating with the IFAD´s Community Development Consultant and the ProjectManager to ensure that all project strategies are adequately understood and ready to beimplemented by the project management team;

Ensuring that project strategies are adequately reflected in project annual plans andoperations;

Coordinating all social trainings to be carried out within IPA, project staff and serviceproviders;

In coordination with the Project Manager, elaborate the terms of reference of social serviceproviders and ensure that contracts with contractors include all necessary provisions interms of HIV/AIDS prevention component;

Overseeing the quality of the work done by the service providers contracted for the differentactivities;

Monitor progress of all social activities implemented and result attained; Ensuring that any and all support required in the field is provided in a timely fashion; Ensuring that all necessary disaggregation of data is being dully compiled, processed and

used at local level for regular monitoring purposes and that all learning in dullydocumented;

Collaborate with the Project Manager to ensure the successful that participatory planning,monitoring and evaluation activities;

Ensure that progress and annual reports include critical and insightful analysis of projectprogress, results and unintended social and gender changes that could be taken place intarget communities;

Coordinate and support the conduction of any studies of social nature relevant to theproject;

Identify potential valuable linkages with partners; Promote synergies and collaboration; and Collaborate with other team members and IFAD in carrying out any additional task related

to the success of the social aspects of the project.


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MONITORING AND EVALUATION OFFICER




The total costs of the project are estimated in about USD 10.4 million, to be financed by an IFAD loan(9.4 million USD) and the Government of Angola (1.5 million USD). The total management costs areestimated to be about USD ... million USD. The detailed costs for each of these items are presentedin Appendix ... (Project Costs and Financing).



Background Qualifications and Experience of the M & E Expert

IFAD will hire a competent, energetic and committed individual interested in managing of M&Eoperations for the artisanal fisheries project. The incumbent will need be expected to meet thefollowing requirements:

University degree in statistics, international or rural development or other relevant discipline At least five years of experience and excellent track record in development programmes of

which at least two in managing M&E systems Proficient in Portuguese, working knowledge of English desirable Computer skills especially statistical analysis using SPSS, Ms Access, Excel, among others

and database management Communication, analytical and writing skills Good knowledge of Programme Cycle Management and Development


The project will be managed through a Project Management Unit within IPA. The project is looking fora competent and experienced Monitoring and Evaluation Officer to lead the manage all M&Eprocesses, including the identification, documentation, processing and timely availability of relevantproject data, that allows the project to track progress in implementation, results in all project targetgroups and project effects. Specifically the incumbent will be responsible for: Elaborating a detailed M&E Implementation Plan, elaborating from the M&E Plan elaborated in

the project´s design phase, in close collaboration with IFAD´s M&E specialist and project


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programme officers, ensuring that all key indicators are identified at the onset of projectoperations, disaggregating as required, and in line with Government (IPA) M&E systems;

Recruit one project data encoder; Recruit programmer to create databases required by the project for M&E purposes; Develop all necessary forms for data collection, report templates for all the different reporting

levels, aggregation maps; Train any service providers and collaborators in M&E concepts and project requirements; Ensure that are data collection requirements are being met at high quality standards; Establish and implement a regular data quality verification system; In coordination with the Community Development Officer, ensure that data maps on activities

implemented can adequately show if target groups are effectively being met (including genderand age group quotas within each target group);

Ensure timely elaboration of complete data maps for regular analysis by programme staff,report elaboration and to inform planning cycles;

In close coordination with the Project Manager and other project staff, prepare all data andother information required for annual meetings with communities, and participate in thesemeetings (with clusters of project target communities);

In collaboration with Programme Officers, identify opportunities to contribute to the generationof knowledge, identifying and participating in relevant venues where project data can informpolicy reflection, dialogue and development at national, regional and international level;

Ensure that all M&E activities implemented, plans and needs are adequately reflected in projectreports, plans and budgets;

Coordinate the implementation of project special studies and surveys; Support the development of IPA´s M&E systems as appropriate; and Overall responsibility for the quality of all data produced by the project through its M&E

system.


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DRAFT TORS: FINANCIAL MANAGER




The total costs of the Project are estimated in about USD 10.4 million, to be financed by an IFAD loan(9.4 million USD) and the Government of Angola (1.5 million USD). The total management costs areestimated to be about USD … million USD. The detailed costs for each of these items are presentedin Appendix ... (Project Costs and Financing).



Background Qualifications and Experience of the Financial Manager

High degree in economics or finance administration; at least 5 years in financial management andaccounting in internationally financed programmes; good skills in using computer financialmanagement and accountancy software; fluency in spoken and written Portuguese and English;experience in implementing IFAD or World bank funded projects will be an advantage.


Under the direct supervision of the Project Coordinator, the Financial Manager will be responsible forthe financial management and administration in relation to project implementation. Specificresponsibilities include but are not limited to:

Implementing the Project Financial system and tools; Conducting the financial management, accounting of the project; Managing project funds Preparing annual budgets in the framework of the annual planning process; Ensuring all project accounts, disbursement and replenishment procedures are managed with

respect to disbursement and replenishment in accordance with the procedures stipulated by theFinancing Agreement;

Preparing regular financial progress reports as required by the government and IFAD; Preparing of annual and final Project Financial reports for external auditing and provide all

required assistance to Project external auditors. Assisting the Project Coordinator in elaborating the Project Completion Reports, by providing

update detailed project financial statements;Assisting the Project Coordinator in conducting Project Completion and Loan Closing activities incompliance with Loan conditions.


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DRAFT TORS: PROCUREMENT SPECIALIST



Background Qualifications and Experience of the SpecialistHigh degree in law, economics or administration; at least 5 years in procurement management ininternationally financed programmes; good skills in using computer financial management andaccountancy software; fluency in spoken and written Portuguese and English; experience inimplementing IFAD or World bank funded projects will be an advantage.

Scope of Technical ServicesUnder the direct supervision of the Project Coordinator, the Procurement Manager will be responsiblefor the procurement and contracts administration in relation to project implementation. Specificresponsibilities include but are not limited to:

Implementing the Project Procurement system and tools; Conducting the procurement and contracting of goods and services of the project; Preparing annual procurement plans in the framework of the annual planning process; Ensuring all project procurement procedures are managed in accordance with the procedures

stipulated by the Financing Agreement; Preparing tender documents according to the Financing Agreement rules and procedures and

assisting in conducting all tendering and contracting activities. Keeping of update records of alltendering processes;

Preparing regular procurement progress reports as required by the government and IFAD; Preparing of annual and final Project Procurement reports for external auditing and provide all

required assistance to Project external auditors. Assisting the Project Coordinator in elaborating the Project Completion Reports, by providing

update detailed project procurement statements; Assisting the Project Coordinator in conducting Project Completion and Loan Closing activities in

compliance with Loan conditions.


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ATTACHMENT 3: CAPACITY BUILDING PLAN

Institution/Staff Objective Training Timing

PCU managers Effective procurement; compliancewith requirements

Procurement PY1-PY2

PCU managersand staff

Results oriented strategic planningand team building

Effective targeting and monitoring

Logframe and managing forresults

Targeting strategies (focus onpoor, women, youth); gendermainstreaming

PY1-PY2

PY1-PY3

IPA seniormanagers

IPA staff (15, atleast 7 women)

Results oriented strategic planningand team building

Effective implementation andknowledge of fishing technologies,planning and management

Logframe and managing forresults

Diploma in extension service(level 2)

PY1-PY2

PY1-PY4

NGOs managersand staff

Understanding of fishingproduction chain, fishingtechnologies, planning andmanagement

Diploma in extension service(level 1)

PY1-PY5

The Republic of AngolaArtisanal Fisheries and Aquaculture ProjectDetailed design reportAppendix 7: Financial management and disbursement arrangements

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Appendix 6: Planning, M&E and learning and knowledge management

Introduction

1. The Artisanal Fisheries Project will be implemented by the Institute for Artisanal Fisheries (IPA –Instituto da Pesca Artisanal). It is estimated that it will reach a total 75,000 beneficiaries in 16,000households located in 70 communities in Bengo, North Kwanza, Luanda and Malanje Provinces.Broad interventions will be developed to benefit participating communities as a whole. Specificproducts or services will be offered to target groups (including youth) in these communities in supportof strengthening livelihood activities associated with artisanal fisheries with the aim of having apositive effect on food security and nutrition. The targeting strategy will be operationalized via theidentification and use of specific eligibility criteria for each of the products offered that meets theminimal capacities of households of different socio-economic strata to sustain improvements.Moreover, each intervention will have a gender and age group quota. The Project aims to strengthenlivelihoods, increase sustainable household income and increase citizen participation in localdevelopment processes with a view of improving food security and reducing multidimensional poverty.Potential partners such as the Food and Agriculture Organization (FAO), the Instituto Nacional deApoio às Indústrias de Pesca e Investigação Tecnológica (INAIP) and the Instituto Nacional deInvestigação Pesqueira (INIP) are likely to collaborate with the project. Synergies will also be soughtwith the IFAD agriculture project and other partners and programmes implemented in the project area.

The project management cycle and the M&E system

2. The Project´s Monitoring and Evaluation (M&E)system will constitute the main project managementtool to track project implementation and results. TheM&E system consists of a set of interrelatedprocesses that include action planning, theidentification of data to be collected by the project,data collection, data analysis and finally, data useand reporting / planning, as illustrated in Figure 1.Participatory M&E will be an integral component ofthe management process: communities will regularlyassess progress with field staff and provide inputstowards yearly analysis of progress and elaboration ofplans for the forthcoming year. In addition a total of 3 -5 annual reporting and planning meetings will take place with clusters of communities with theparticipation of community representatives. It is expected that these processes create opportunitiesfor the project´s participatory M&E and management system to integrate with communitymanagement processes.

The monitoring and evaluation system

3. The M&E System for the Artisanal Fisheries Project herein, was developed during the designphase of the Project. It will be constituted by broad start and end of project household surveys, thecollection of regular data during project operations and special studies. Data collection instrumentswill be specifically designed to enable the Project to collect all required data and other information.Data will be carefully disaggregated by socio-economic group, and further, by age group (youth andadults) and by gender /household type (women headed household or not), as relevant, to ascertainthe level of participation and effectiveness of project targeting strategies.

4. Components of the M&E system. This section describes the different components of theproject´s M&E system:

Baseline and end of project surveys: IFAD projects require that baseline and end of projectsurveys be conducted as a means to capture changes among the target populations andidentify attributable effects associated to project interventions. The number of participatinghouseholds is determined by statistical representativeness criteria. Compulsory indicatorsfrom IFAD´s Results and Impact Monitoring System (RIMS) will be complemented by otherrelevant indicators where needed. These additional data are hosted in an attached platform

Figure 1: Processes in the project´sM&E system


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for data entry using SPSS software (Statistical Package for the Social Sciences). A controlsample is included in the end of project assessment (see Attachment 3);

Regular Project M&E Data Collection: The project logical framework presents the goal,development objective, outcomes and outputs derived from the implementation of theProject and key performance indicators. Additional indicators to track each relevant activityimplemented will be identified at the onset of project operations and included in the M&EImplementation Plan. Indicators will be chosen based on their ability to track progresstowards expected results, measure trends and serve for decision-making-purposes.Indicators should be Specific, Measurable, Attainable, Realistic and Timely (SMART). ThePCU will need to scrutinize the choice of indicators to concentrate on collecting data that areuseful and avoid the common mistake of collecting a broad range of data that are neverused.

Data collection and documentation will take place during implementation of activities throughtailor-made forms and report templates to be developed by the M&E Officer in closecoordination with the technical team members. Similar forms will be created to aggregatedata in ways that are meaningful for the project. This system follows the logic of the IPAM&E system. In this light, it is expected that the implementation process of the project´sM&E system will create opportunities to enhance IPA´s M&E processes. The M&E Officerand other Project team members will systematically review the quality of data registry (onpaper) and entry (in a database) as an on-going quality assurance process.

Special Studies: Budgetary allocations will be made for the conduction of 8 short specialstudies during the lifetime of the project. These studies aim to consolidate the Project´sknowledge base for effective strategy development, namely:

Census of fishermen and boats. Given that the Project aims to enhance livelihoods ininland fishing villages of Bengo, Luanda and North Kwanza Provinces and the need todemonstrate the changes brought about by the Project, a census of all fishermen andboats in all target communities prior to project implementation will be conducted;

Understanding the situation of vulnerable women-headed households in inland fishingcommunities. During project preparation women headed-households were observed asbeing part of every social strata in the communities visited. The Project needs to gain adeeper understanding of the livelihood strategies of women headed households that donot own boats in this area, their livelihood strategies and how these relate to the fishingactivity in their communities. The aim of the study is to understand the specific factors ofvulnerability of these households and confirm which are the strategic programming entrypoints to strengthen the project´s targeting strategy as related this specific group (seeAttachment 3);

Market study in the project area. An initial market study will be implemented with theobjective of (i) identifying current and future demand for inland water fish (mainly tilapia)at local and national level, and (ii) analysing the potential impact of the proposedmarketing / value chain activities of the Project at the market level and estimating theeffects on prices of an increased supply of fish, for both fresh fish and traditionalproducts; and

Opportunities for enhancing nutrition at the household level. Given the importance ofnutrition in the Project and the absence of information in-country in relation to practices,preferences and programming opportunities to enhance nutritional practices athousehold level, the Project will conduct a qualitative study in target communities toidentify local food consumption patterns from a nutritional perspective, food taboos,weaning practices and local cooking preferences; strategic practices and key foodstuffthat the project should focus on, and recommended contents to be promoted atcommunity level. The results of the study will be presented to the project and keyGovernment officials, donors and other stakeholders in Luanda for validation and tomobilize efforts for similar programmes.


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5. An additional three qualitative studies will be conducted as early as possible after projectapproval, so as to inform baseline survey questions related to women headed households and localmarkets.

Follow-up market study in the project area. A second market study will be conducted halfwaythrough the project to monitor market trends relevant for project strategies;

Food security assessment in the project area. Assessment of progress made in terms of foodsecurity and nutritional practices in the project area. This study is expected to be conductedin year three with the aim of understanding if minimal project educational activities, thereduction of fishing production losses and market improvements are increasing householdlevel food stocks and improving food consumption patters. This study will be conducted inthe first quarter of project year three; and

Disaster Risk Management Systems in Angola. The purpose of the study is to inform theinstitutional awareness raising workshop as well as the final report with regard to the currentsituation and existing gaps in that system.

6. Finally, the Project has allotted a placeholder for an additional study to be carried out hallwaythrough the Project, to meet any additional needs identified during the first two years ofimplementation of project interventions.

7. Two project databases will be created, the first one for storing the baseline and end of projectsurvey data (including compulsory indicators plus any additional ones deemed necessary to capturechanges brought about by the Project). The second platform will host all regular monitoring dataassociated with the implementation of project activities directly linked to outputs.

8. The Artisanal Fisheries Project will support sector statistics data collection and managementsystems for inland fisheries and aquaculture, in close coordination with FAO. It is expected that theOrganization will support IPA in coming years to overcome current constraints affecting the effectivefunctioning of the ARTFISH system in place for coastal fisheries. A discreet database will be used byIPA for storing statistical fisheries data nationwide. Extension workers supported by the project willassist in the collection of statistical sector samples in the project area for corresponding fishproduction systems.

9. Data collection, data flow and reporting. All relevant project-generated data will be registeredat community level by stakeholders working in the field (extension workers, service providers andcontractors) in activity monitoring sheets and reported monthly or more frequently, if deemedpertinent. Data reporting forms will accompany reports to be sent to the Project Coordination Unit(PCU). Data will be aggregated as relevant per community, commune, municipality and for the projectglobally as a basis for monitoring, analysis and decision making at the different levels. Data will besafely stored in the Project´s office.

10. The PCU will submit quarterly narrative and financial reports to the Country Programme Manager(PCM). These reports will contain data on pre-defined basic indicators. The report corresponding tothe fourth quarter will be encompassed in the annual report as illustrated in Figure 2 below:

Figure 2: Project reporting timeline

11. The narrative section of the report will contain data for the entire year presented in a way thatprovides insight into trends both related to progress and performance towards targets. Reportingformats shall be as consistent as possible between reports while allowing for the incorporation anynecessary additional data, information and analysis. The project M&E Officer and other teammembers will make all necessary provisions to ensure that data is compiled, verified and processed intime to honour reporting commitments respecting high quality standards.


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12. Data summaries will also be generated from the project database for comprehensive, transparentand accountable reporting to participating communities, IFAD, project partners and the Government ofAngola. In addition, project data will be incorporated in IPA´s own Government reporting requirements,which include the presentation of basic data on a monthly basis for the Ministry of Fisheries, morecomprehensive reports prepared on a quarterly basis and the yearly report to be analysed in theConselho Técnico – Científico (internal sector yearly meeting) in preparation for the Conselho deGestão Integrada involving the participation of various sectors, and non governmental organizationsand cooperatives. Together, these reports will inform IPA´s progress in attaining the goals set forth inits yearly plan, its strategic plan, the Ministry of Fisheries´ strategic plan for aquaculture and fisheriesand the country´s poverty reduction strategy.

13. Project monitoring and planning. Data maps will be generated as required at all levels to servethe primary function of data collection: the use of data to review project strategies in regular planningcycles. Planning should generally follow the same schedule as reporting at the different levels, withinthe overarching commitments assumed in the annual plan.

14. The Annual Work Plan and Budget (AWPB) will be prepared in October each year as it will besubject to several lines of approval, the last one being IFAD granting ´no objection´ by the 31st ofDecember of each year. The document submitted to IFAD will need to have been vetted by theProject´s Steering Committee during the month of November each year. The PCU will receive supportfrom the IFAD CPM during the month of October. Details of the process are shown in Figure 3 below:

Figure 3: Annual work plan and budget elaboration and approval process

15. Any other planning requirements from the Government of Angola and/or other project partnerswill be integrated into this planning exercise and scheduled accordingly.

16. Project plans will be based both on the analysis of cumulative data and experience and shall theincorporation of inputs from project beneficiaries at minimum once per year.

17. Operationalization of the M&E system. Upon the Project launch M&E capacities will need to bebuilt based on this M&E Plan:

Recruiting an M&E Officer Elaborating an M&E Implementation Manual with all corresponding forms and data tables and

reporting forms. This M&E Implementation Manual will mirror the Project ImplementationManual (PIM) and serve as a bridge with the Project Logframe

Creating software platforms for data storage in compliance with IFAD requirements while at thesame time adding all required information

Training all project personnel on M&E requirements and link to the results based managementframework

Creating schedules for the effective operations of the system, in tune with the projectmanagement cycle and knowledge management possibilities

Knowledge management

The Project´s M&E system will generate quality data that will enable IPA and the Ministry of Fisheriesto carefully monitor the Project and provide high quality information on the development of inlandfisheries and aquaculture in the project area at higher levels of the Government. The hierarchy ofproject objectives is the founding platform for IPA to widen its participation in discussions beyond thetechnical domains that it is responsible for managing in country. It is expected that this will strengthenthe quality of IPA´s participation in the Conselho Técnico – Científico and the Conselho de GestãoIntegrada as well as its participation in high-level fora on rural livelihoods and rural development, foodsecurity, nutrition and poverty reduction that in turn lead to successful participation in regional andinternational level fora, contributing to existing knowledge base, planning and policy discussions.

.


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ATTACHMENT 1: INDICATOR TABLE

Component 1: Inland FisheriesOutcome 1:Inclusive,sustainable inlandfisheries sectormanagement &developmentcontributing tostrengthenedlivelihoodstrategies athousehold level

3,300 fishermen,processors and tradersreportingproduction/yieldincrease 10,000 households with

improved livelihoodstrategies and 30%increase in incomelevels(*)

1 market and 5processing facilitiesfunctioning

BaselinesurveyEnd of projectassessment

Beginning &End ofProject

Contractor

IFADsupervisionreports

Every sixmonths

IFAD ProjectCountryManager

Projectstatistics

Every sixmonths

Projectextensionworkers, serviceproviders,contractors

Output 1.1:Institutionalcapacitystrengthened(national,provincial, local /extension service)

Fisheries monitoringsystem in use in inlandfishing areas betweenproject year three andthe end of the project 60 fisheries

managementplansimplemented 30 IPA staff trained in

fish technology andfisheries management,outreach, climatechange, gender, socialissues and HIV/AIDS(*)

Baselinesurvey and endof projectsurvey


Contractor

Field staffreports

Monthly ExtensionWorkers,ProgrammeOfficers

Progress andannual reports

Quarterly,Annual

Project Manager

Serviceproviderreports

Quarterly Service Provider

Final report onthevulnerabilityand riskassessmentand climatechangeadaptationproposal

Once Climate ChangeSpecialist

(*)Data will be collected disaggregated by gender, either: men/women or men headed household/women headedhousehold. Other activity related indicators will be collected by project implementers to track targetingeffectiveness, and results obtained by men and women targeted


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Output 1.2:Improvedcommunityparticipation ineconomic andwider localdevelopmentprocesses

60 climate changevulnerabilityassessments carriedout 60 community

development plansincluded in municipalgovernment plans 60 communities

targeted withawareness raising andeducationalinterventions onclimate change,gender, food securitynutrition, mines andHIV/AIDS

Output 1.3:Increased quantityand quality of fishproduced and soldon a sustainablebasis

3,000 people trained infish productionpractices/technologiespractices along the fishproduction chain (*) 10,000 people trained

in functional literacy (*) 5,500 people trained in

post-production,processing andmarketing (*)

Output 1.4:Improved marketrelatedinfrastructure

40 Kms of roadsconstructed /rehabilitated 5 market,

processingfacilitiesconstructed/rehabilitated 30 villages with

improvedtransport routes

Component 2: AquacultureOutcome 2:Inclusive,sustainable small-scale aquaculturesectormanagement &developmentcontributing tostrengthenedlivelihoodstrategies athousehold level

960 fish-farminghouseholds reportingproduction / yieldincrease (*) 960 households with

improved livelihoodstrategies and 30%increase in incomelevels (*)

Baselinesurvey and endof projectassessmentIFADsupervisionreportsProjectstatistics


Every sixmonths

ContractorIFAD ProjectCountryManagerProjectextensionworkers, serviceproviders,contractors

Output 2.1:Institutionalcapacitystrengthened(national,provincial, local /extension service)

Aquaculture monitoringsystem in use in targetareas between projectyear three and the endof the project Strengthened policy

framework for small-scale aquaculture 20 government officials

Baselinesurvey andend of projectsurvey


Contractor

Field staffreports

Monthly Extensionworkers,ProgrammeOfficers


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/ staff trained inaquaculturemanagement, outreach,climate change,gender, mines, socialissues and HIV/AIDS(*)

Hatcheryreports

Quarterly Hatcherymanagementteam

Progress andannual reports

Quarterly,Annual

Project Manager

Serviceproviderreports

Quarterly Service ProviderOutput 2.2:Improvedcommunityparticipation ineconomic andwider localdevelopmentprocesses

10 climate changevulnerabilityassessments carriedout 1

0 communitydevelopment plansincluded in municipalgovernment plans 1

0 communities targetedwith awareness raisingand educationalinterventions onclimate change,gender, food securitynutrition, mines andHIV/AIDS

Output 2.3:Increased quantityand quality of fishproduced in fishponds and sold ona sustainablebasis

960 households withfishponds supported bythe project (*) 1,300 people trained in

aquaculture production,processing, marketingand functional literacy(*) 70% of households

sustain activities aftertwo years (*) Volume and prices of

fish sold (*)

Output 2.4:Governmenthatcheryinfrastructureeffectivelyprovides projectclients withrequired inputs

1,000,000 fingerlingsproduced anddistributed to farm-fishing households Provision of fingerlings

as scheduled in projectplans, in tune withbeneficiary readiness


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ATTACHMENT 2: PROVISIONAL BUDGET

Type of expense N. Units Unit cost USD Total cost USDM&E Expert (IFAD consultant) 2 person

months12,500 25,000

M&E Officer 60personmonths

3,000 180,000

Baseline survey and census 1 150,000 150,000

Women headed household study 1 25,000 25,000

Market study 1 25,000 25,000

Nutrition study 1 25,000 25,000

Follow up market study 1 10,000 10,000

Food security assessment 1 25,000 25,000

Disaster risk management study 1 25,000 25,000

Placeholder for additional study 1 25,000 25,000

Creation of project databases 1 5,000 5,000

Computers and other equipment 2 3,000 6,000

Participatory community assessments 5 10,000 50,000

End of project survey 1 1 100,000

TOTAL 676,000


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ATTACHMENT 3: TORS FOR STUDIES (ON BASELINE SURVEY ANDON WOMEN HEADED HOUSEHOLDS

BASELINE SURVEY

I. Introduction

1. The Government of Angola and the International Fund for the Development of Agriculture (IFAD)have decided to implement an artisanal fishing project to support household inland fisheries andaquaculture in the. The project area is circumscribed to 13 Municipalities of in the Provinces ofBengo, North Kwanza, Luanda and Malanje, as indicated in the table below:


2. The project´s overall development objective is to attain improved food security and nutritionamong artisanal inland fishing and fish-farming households.

II. Context and Justification of the Intervention

3. The Government of Angola and FIDA are engaged in fighting against poverty and attaining theMillennium Development Goals. Despite the progress already made, Angola still has a high rate ofpoverty, largely due to the effects of the war ended in 2002. Poverty levels are higher in rural areas ofthe hinterland where the population has a more limited access to social services, safe water sourcesand very challenging living conditions. The Anti-poverty Strategy (Estratégia de Combate à Pobreza,ECP), revised in September 2005, prioritises the reconstruction of infrastructure, increased access toeducation, health, and other basic services, as well as decentralisation of governance structures. Itsmain goal is to cut to half the country’s 2001 poverty level in 2015 (34%) and to consolidate peaceand national unity through the sustained improvement of the living standards of all Angolans. TheECP highlights rural development, with a focus on the improvement of food security and the re-vitalisation of the rural economy.

4. The Government has produced various additional instruments and measures, among which arethe following: (i) Strategy for Food Security and Nutrition, (ii) the National Development Plan 2013 –2017 (iii) the Integrated Municipal Programme for Rural Development and Fight against Poverty, (iv)the Programme for the Revitalization of Health Services.

5. The Project´s Monitoring and Evaluation Plan is aligned with IFAD´s Results and ImpactManagement System (RIMS), driven by simple but systematic concepts that lead to a set of commonindicators for all IFAD projects for consistent and systematic recording, measurement andassessment of data at the output, outcome and impact level to measure project performance.

III. Objective of the Baseline Survey

6. The household level baseline survey will collect all necessary data required for the ArtisanalFisheries Project to document the situation on the ground in relation to the three higher-level RIMSindicators below prior to project intervention.

GOAL LEVEL 16,000 Households with improvement in household levelownership [Total beneficiaries: 75,000 people over 70communities]

PROJECT DEVELOPMENT 50% Reduction in food insecurity among targetOBJECTIVE LEVEL households

50% Reduction in the prevalence of child malnutrition

7. Key additional (non-RIMS) indicators will also be included to allow the project to monitor


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progress towards project outcomes and goals on a yearly basis. A similar assessment will beconducted at the end of the project to understand the effects that the project has had on targetpopulations. The survey will provide answers to two key questions: What changes have occurred inthe participating population since the beginning of the project? And To what extent are these changesattributable to the project?

IV. Baseline Survey Methodology

8. The household will constitute the sampling unit for the survey. The baseline will follow a stratifiedsampling approach among three broad socio-economic categories identified by IFAD consultantsduring the Early Design Mission to Angola carried out in June – July 2013, namely:

Socio-economic strata and Estimated weight in the community

RESILIENT HOUSEHOLDS: These are households that own productive assets and havestrong social capital (15 – 20 %)

VULNERABLE MIDDLE CLASS: Households that do not have large productive assets andhave limited social capital (60 – 70 %)

VERY VULNERABLE ASSETLESS LABOURERS: Households that work for others (15-20%)

9. Systematic random sampling will be basis for choosing participating households and avoidinginterviewer bias of visiting easily accessible households. the participation of randomly chosenhouseholds. The household will be the sampling unit for the baseline survey. Anthropometricmeasurements (weight and height of children between 1 and 5 years of age) will be taken among arandomly chosen child < 5 in a sub-set of representative households included in the survey sample.Results should have statistical validity so that they can be used to generalize the entire population.

10. Two discreet questionnaires will be administered among participating households:

a) A general questionnaire administered to the woman head of household or the wife of the manheading the family, and

b) A short questionnaire administered to the head of household or the wife of the man heading thefamily In chosen households, focusing on child nutrition issues, to be complemented bytaking anthropometric measurements of a randomly chosen child within the household

11. World Health Organization (WHO) child growth will be used, namely:

- Height for age- Weight for age- Weight for height

12. The household sample and the sub-set for children < 5 will be determined based on the numberof people registered as living in the target villages (should census data for the upcoming 2014 censusbe available, this will be the prime source of information).

13. Questionnaires will be administered in Portuguese or in the predominant the local language(according to the preference of the interviewee). Interviewers shall be prepared to administer thequestionnaire in either one of the two languages. They will have received thorough joint training onethics, survey administration, logistics and gauging quality of responses.

14. Questionnaires will be field-tested to ensure that questions are complete and accurate,responses obtained are relevant and that respondents understand the question that is being asked.Questionnaires will be adjusted as necessary after testing. Interviewers will have developedcompetence in taking anthropometric measurements among children aged 1 to 5, prior to theconduction of the actual survey questionnaires.

15. During survey implementation, supervisors will need to review questionnaires to ensurecompleteness and accuracy in types of responses recorded. Incomplete or inaccurate questionnaireswill require the interviewer to return to the participant household or repeating the interview with analternative household following the same household selection process determined for the study.


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16. The consultant will need to compile data according to internationally approved standards, usinga rigorous coding system with de-identifiers to safeguard informant privacy and confidentiality. AnIFAD database will be used for RIMS indicators and a complementary SPSS platform used forcompiling additional data.

V. Consultancy Phases and Timeline

17. The baseline survey will be carried out in three discrete phases: preparation, implementation anddata processing and report writing. The table below outlines the main activities to be carried out ineach phase:

PHASE I:Preparation

(2 months)

- Presentation and approval to IFAD of detailed final technical proposal and workplan

- Preparation and approval of informed consent form- Preparation of survey questionnaire- Training of field personnel- Field testing of questionnaires- Finalization of questionnaires- Preparation of all survey material and logistics

PHASE II:Implementation

(2 months)

- Implementation of household level survey- Regularly transfer filed in questionnaires to a safe location- Data entry into databases- Quality checks in data registry- Production of main data tables

PHASE III:Report writing

(1.5 months)

- Presentation of preliminary findings through a conference call (1 week after the endof field work)

- Analysis of survey results- Submission of draft report for IFAD and IPA comments (30 calendar days after the

end of fieldwork)- Submission of final baseline survey report (60 days after the end of fieldwork)- Approval of final report

18. The contractor will communicate on a regular basis with IFAD and inform of any situation thatmay compromise the quality or timeliness of the execution of the survey. The baseline draft and finalreport will be produced in English language.

VI. Consultant Profile

19. The consultant will be chosen under competitive basis, based on technical competence,previous experience and proven ability to manage the logistics associated to the implementation of ahousehold survey. The consultant shall work with a team consisting of at least a Team Leader, aField Coordinator, Field Supervisors, Interviewers and Data Encoders. Interviewers will be women.

20. Minimal requirements for the consulting firm:

- Firm must have a minimum of 5 years of successful track record of implementing statisticallyvalid household surveys and previous experience working in rural Angola

- Proof track record of keeping to timetables- Proved capacity to delivering high quality reports- The Team Leader must be fluent in English and be professionally competent in Portuguese with

at least 7 years experience- The Field Coordinator must have successful track record of coordinating such surveys in rural

Africa with 5 years experience including in Angola and be Fluent in Portuguese andprofessionally competent in English

VII. Submission of Proposals

21. Submissions of technical and financial proposals must include standard information including:


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- Detailed technical proposal, including methodology, sampling approach, sample size, method,first draft of the questionnaire, technical assurance measures to safeguard participantconfidentiality and safety of information collected

- Team composition, CVs of proposed managers, coordinators and supervisors. Potential CVs ofat least 10 interviewers to be integrated in the team

- Detailed financial proposal- Detailed timeline- Logistics plan


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SPECIAL STUDY ON WOMEN HEADED HOUSEHOLDS

Background

1. The Government of Angola and the International Fund for the Development of Agriculture(IFAD) have decided to implement an artisanal fishing project to support household inland fisheriesand aquaculture in the. The project area is circumscribed to 13 Municipalities of in the Provinces ofBengo, North Kwanza, Luanda and Malanje, as indicated in the table below:


2. The project will implement technical interventions to increase the capacity of small-scalefarmers to use natural resources in a sustainable way, reduce catch losses and remove some of themarket failures identified in the value chain in the Provinces of Bengo, Luanda and North Kwanzafresh, smoked and salted fish. This will be done through the introduction of fisheries extensionservices in the project area, the improvement of related infrastructure (landing sites, markets, roadsand bridges as relevant and possible within the limits of the project) and increasing the offer of highervalue fresh fish. Household level aquaculture will be promoted in specific locations of MalanjeProvince.

3. The improvement of livelihoods and food security in target inland fishing communities and inagricultural communities where aquaculture will be promoted requires is dependent on addressingother aspects of multidimensional poverty. Rural households in the target area face many competingpriorities to meet daily needs, accessing distant services under extremely difficult conditions and withlimited skills. In recognition of this fact, the project developed a four-prong social approach that aimsto address the multiple challenges affecting livelihoods, food security and poverty, while at the sametime recognizing the varying degrees of household vulnerability at community level:

e) Equity targeting: aims to ensure that interventions reach social strata most in need,according to pre-defined criteria to maximize sustainability of project investments. Theseactivities will be complemented by other activities targeting all socio-economic groups inthe community. Gender and age quotas will be established for all activities, as relevant toensure that women, men and youth all enjoy the benefits of the project in equal terms.

f) Incorporation of community development interventions: communities as a whole will bereached by awareness-raising interventions on key issues (climate change, mines,HIV/AIDS, gender, food security), nutrition education activities, and will be involved in theelaboration and dialogue with authorities for the elaboration of community developmentplans. Entrepreneurship targeted activities will include savings/credit groups andhousehold level projects among those that most need it.

g) Incorporation of functional literacy services for men, women and youth in targetcommunities

h) Using participatory project planning, monitoring and evaluation processes

Justification of the study

4. During the project´s design phase, three socio-economic and livelihoods groups were identifiedin the project area, as shown below (for details of the broad description of the socio-economic strata,see Appendix 2):


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Socio-economic strata RESILIENT HOUSEHOLDS: These are households that own productive assets and have

strong social capital VULNERABLE HOUSEHOLDS: Households that do not have large productive assets and have

limited social capital. VERY VULNERABLE ASSETLESS LABOURERS: Households that work for others

Estimated weight in the community15 – 20%

60 – 70%

15 – 20%

5. Women headed households were observed and referred as being part of all three groups. Thisstudy will focus on women headed households in the vulnerable and very vulnerable groups.

6. It is apparent that some rural women in target villages have rich family networks that extendwithin and beyond the village and community, reaching at times the closest city, throughout whichchild-minding tasks, responsibilities over the children´s formal education and productive tasks aredivided. In these cases the products derived from the rural woman´s household´s do not only meetthe needs of her household per se, but also can contribute to the needs of kin that provide service tothe household. A common thread throughout the discourses of women heard during the fieldworkcarried out in the early design phase was the support received from a sister in the village or thenearest city, by taking care of young children while she travelled to sell her produce, or receiving herchildren once they reach school age so that they can attend school.

7. During the project design mission is was not clear the degree to which women headedhouseholds are de facto those living under the most distress. While these households do face thestructural weakness derived from not having a husband with whom to share the responsibility ofraising children and lack the labour required to prepare land for agriculture and to fish. A deeperunderstanding needs to be gained on the degree to which this structural weakness to develop small-scale rural livelihood activity (agriculture and fisheries) affects the livelihoods, wellbeing and copingmechanisms of women headed households, vis-à-vis other households in their communities, so as toconfirm the specific targeted interventions that need to be put in place for this group within the contextof the project.

Objective of the study

8. The Women Headed Households Special Study to be conducted for the Artisanal FisheriesProject in Angola, aims to understand the livelihood strategies and the specific vulnerability factors tofood insecurity of women headed households in target communities with the view of confirming whatthe most effective project interventions to address their most pressing needs are.

9. Specific guiding questions to be answered in the context of this study are presented below:

Livelihoods

- What are the specific livelihood strategies of women headed households in each socio-economic stratum?

- Do women headed households practice small-scale agriculture?- Is the size of their plots smaller than those of men headed households in the same socio-

economic strata?- How do women headed households manage to prepare their fields without a husband´s labour

force in each of the socio-economic strata?- Specifically in communities that practice inland fisheries: Are women headed households in the

different socio-economic groups involved in fish processing and trade? How is access to fish


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made possible? (If they do not have a boat and given that fishermen´s wives are the oneswho generally process fish) How does their role differ to that of other women?

- What other livelihood activities do women headed households practice in the vulnerable andvery vulnerable strata in target communities? How are these different from the practices ofwomen in male-headed households?

- In the opinion of women heading households in the vulnerable and very vulnerable socialstrata, how would they like to improve their livelihoods? How will they achieve desireimprovements? Please share planned project interventions with interviewees. Do they thinkthat these interventions will respond to their needs? What other measures should the projectcontemplate to effectively strengthen the livelihoods and food security of women headedhouseholds in the project area?

Food security

- How do women that head households obtain the food they provide to their families?- How does the availability and access to food in women headed households differ from other

households in their same strata (source, channel, timeliness, quantity, quality of food)?- How do women headed households provide food to their family when their main livelihood

strategy underperforms? How is this different to what other households do?- How does the food that women headed households consume in each stratum differ to what

women in other strata eat? Are women headed households subject to the same food taboosthat limit women´s intake of certain foods generally destined to men when they are present inthe household? What food taboos do women headed household enforce among theirchildren? Is this different from practices among other households?

Living conditions and assets

- What differences were observed between the houses and material household assets of womenheaded household and other households in their same strata (in the same communities)

Vulnerability

- How do women headed households cope with external and internal shocks17? How do theysurvive in times of difficulty across the different socio-economic groups?

- Are coping mechanisms in place strong enough to mitigate the effects of shocks? How is thisdifferent to the case of male-headed households in the same strata? Please describe

- What specific vulnerabilities are faced by women headed households after experiencing aninternal or external shock, even after utilizing coping mechanisms? How are these differentfrom other community members?

General

- What noticeable differences were observed between women headed households in the samesocial strata? What makes them different?

Methodology

10. This is a qualitative study that will rely on the conduction of interviews and Focus GroupDiscussions (FGDs). This will include FGDs in all communities visited and interviews with women thathead households in all social strata. It is important that the majority of interviewees be chosen tryingto avoid community leader natural bias, to include ordinary women headed households – not thosethat are more closely related to traditional authorities, in positions of privilege or that play apredominant role in the Organização da Mulher Angolana (OMA), local associations, cooperatives orother. It is important that interviews be conducted at the interviewees´ home, so as to observe thegeneral conditions that they live in and how that relates to that of other households in the same social

17 Internal shocks are defined as the events within the household that limit of affect the household´s wellbeing,productive capacity or productivity (for example, illness, death, migration) while external shocks are events thattake place outside of the household that also limit these capacities (drought, floods, reduction of land availableto the household, etc.).


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strata and other community members in general.

11. A minimum of five communities will be visited. The point of entry to the community will be thecommunity leaders. At least one FGD and three interviews will be conducted in each community. It isrecommended that the consultant suggest walking through the village with community leaders orstudy participants to reinforce observation of differences. A general briefing with main issues ofinterest found during the study should be reported back to the community leaders before leaving thecommunity.

12. Verbal consent is required from all participants as a pre-requisite to proceed with the FGD orinterview. In this context participants will need to be informed of the voluntary nature of theirparticipation, the use that will be given to the information provided and assurance that their privacyand confidentiality will be guaranteed – even when debriefing to the community leaders. Should apotential participant prefer not to participate or not continue with the interview / FGD she is free to doso. Should this be the case of a household interview, an alternative household shall be identified.IFAD will need to approve the informed consent text to be presented to participants prior to startingthe fieldwork.

Consultancy phases and timeline

13. The consultancy will be implemented in three phases: preparation, implementation and reportwriting in 18 working days.

PHASE I:Preparation

(3 days)

- Presentation and approval to IFAD of detailed final technical proposal and workplan

- Preparation and approval of informed consent form- Preparation of interview guidelines / FGD topics- Coordination of logistics

PHASE II:Implementation

(9 days)

- Visit communities throughout the project area, conduct: FGDs Interviews with women of different socio-economic groups

PHASE III:Report writing

(7 days)

- Presentation of preliminary findings through a conference call (within the week afterthe end of field work) and a brief report (2-3 pages)

- Analysis of study results- Submission of draft report for IFAD and IPA comments (10 calendar days after the

end of fieldwork)- Submission of final report (20 days after the end of fieldwork)- Approval of final report

14. The consultancy report shall be written in English. The final report will have a maximum of 30pages, including annexes.

Consultant requirements

15. IFAD will hire a competent and experienced professional with the following profile:

University degree in sociology, anthropology, women´s studies, gender studies, international orrural development

At least seven years of experience and excellent track record in development programmes withdirect responsibility over gender issues

Proficient in Portuguese, working knowledge of English imperative Microsoft based computer skills Excellent communication, analytical and writing skills Cultural competency and ability to work effectively with minimal support


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Appendix 7: Financial management and disbursement arrangements

1. Implementing Organization: Financial management of the Project will be coordinatedby IPA through its Financial Management Directorate (DAF/IPA) in support of the ProjectCoordination Unit (PCU) and its IPA provincial representatives in project implementation. The PCUwill be responsible for administrative management, finance and accounting, budget planning andcash flow, procurement as well as payments from project accounts. As appropriate, the Cabinet ofStudies, Planning and Statistics (Gabinete de Estudos, Planificação e Estatísticas - GEPE) of theMinistry of Fisheries (MdP) together with the Ministry of Finance (MdF), will provide all the meansnecessary for DAF/IPA to conduct the financial management of the Project including budgetestimates, mobilizing counterpart funds, supervision and making of disbursements among others.DAF/IPA and the financial assessor of the PCU will work in close collaboration and play animportant role in financial management and project procurement that will permit the assessmentand evaluation of the Project in areas of control, planning, implementation and monitoring as well asin promoting coordination with MdP for fiduciary issues.

2. Financial Staffing: The PCU’s financial team will be composed of personnel that willbe contracted according to competitive bidding of candidates nominated by government. Selectionwill be based on the criteria of professional qualifications, experience and the needs of the Project.This team will be led by an experienced Financial Management Specialist knowledgeable of IFAD’sfinancial management, procurement and disbursement requirements.

3. Project Budgeting System: The annual project budget will be prepared on the basis ofguidelines and regulations reflecting government policy and in coordination with the preparation ofProject’s Annual Work Plan and Budget (AWPB). The procedures for preparing the annual budget andprojecting financing needs will be documented in the Manual of Financial Procedures. The budget willcover all project activities and will be prepared no later than two months before the relevant period ofimplementation. This proposal will be submitted to the Ministry of Fisheries by DAF /IPA in accordancewith the Financial Unit of the PCU. For each year the IPA will submit to IFAD, within sixty days of itsinception, a Annual Work Plan and Budget (AWPB) containing the activities to perform, description ofexpenditure by component, category, funding sources and timelines for implementation. Budgetarycontrol will consist of: timely preparation and approval of AWPB; and verification that budgetinformation is entered and available in the accounting system to allow for the timely recording ofcommitments, payments, and accruals. Before the beginning of the execution of the Project, the PCUwill send to IFAD the first AWPB for no objection as a condition of Disbursement.

4. Accounting Policies and Procedures: The Project will comply with the InternationalPublic Accounting Standards of the International Federation of Accountants (IFAC). The accountingreports will be prepared in accordance with the “cash basis” method of accounting. A FinancialManagement Procedures Manual will be prepared no later than the date of project negotiations andwill contain the accounting policies and procedures including the chart of accounts and the financialmanagement arrangements to be created for the Project. The purchase or creation of a satisfactoryfinancial information management system acceptable to IFAD will be a condition of projecteffectiveness.

5. Financial Reports: The project’s information system will provide financial informationto Project Financial Statements that will identify sources of resources, expenses by component andcategory presented by project year and cumulative to date. Available resources will be appliedexclusively for the achievement of project objectives supported by the respective fiscal statementsand documented by means of Summary Sheets (SS) and Statement of Expenditures (SOE). Theformat and content of these reports will be presented in the Financial Management ProceduresManual.

6. Disbursements Arrangements: During project implementation, the disbursementmethods that will be used are the following: advances, direct payments and reimbursement. Thedocumentation of the uses of advances will be through SOEs. The ceiling of the DesignatedAccount, the limits of contracts subject to prior review and detail of documentation required toaccompany the application for disbursement will be defined in the Letter to the Borrower.

7. Funds Flow: IFAD will disburse loan resources through a specific bank account indollars (Designated Account) to be opened in a commercial bank acceptable to IFAD created by


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PCU/IPA. The IPA would make the payments for financing funds through this account or by way of anoperational account denominated in local currency also to be used exclusively for project purposes.The Government of Angola will open an exclusive account to support agreed on counterpart financing.The PCU will send to the commercial bank Requests for Withdrawals to cover payments to goodsand services providers, transfers to community organizations and other entities involved in projectexecution. All these actions will be registered in the project’s Financial Information System and inthe State Integrated Financial Management System (SIGFE). In the case for the need of transferresources to the provinces in the support of project implementation, it will be made available fromthe operational account to the provincial account. The arrangements for the creation and supplyingof the accounts transferred resources to the provinces will be detailed in the project’s FinancialProcedures Manual and reflected in the audit plan. The flow of funds chart will be confirmed duringNegotiations and included in the PIM (see below).

Funds Flow Chart

8. Internal controls. Internal control will be insured through the establishment of separatefunctions, reconciliation of accounts, differential levels of approvals required depending on amounts ofexpenses with support of statements or other documents and functions of the project budget andfinance systems. In an effort to strengthen internal controls, the PCU will provide the detailedarrangements, flow of resources, and roles and responsibilities and procedures in a Project FinancialManagement Procedures attachment that will be attached as an annex to the PIM. The elaboration ofthis Manual will be a condition for Disbursement.

9. Internal Audit. The internal audit will be carried out mainly by the Internal controls thatwill be complemented continuously through the efforts of the government’s internal auditor (InspecçãoNacional de Finanças – INF). However in a complementary way, the Project will have to select a

KeyFunds

Reports/Invoices

IFAD Funds(USD/SDR)

Countpart Funds(kwanzas)

Angola Gov / MdF

Suppliers of Goods andServices andsubprojects

Designated Account(USD)

Comercial Bank

Operation Account(Kwanza)

[PCU/IPA/MdP]

Suppliers of Goodsand Services and

subprojects

Sub OperationAccount

(Kwanza)[UPCPs]


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qualified internal auditor with relevant experience in other projects funded by InternationalDevelopment Institutions.

10. Safeguard over Assets. Based on the project’s design, investment in fixed assets isexpected. During implementation, all the assets will be property of the Project. Any implementingentity will be responsible for the management of these assets. All fixed assets to be acquired underthe Project should be registered in each implementing entity’s fixed assets inventory system andconsolidated in the PCU’s information management system through which PCU will monitor all theproject assets. The fixed asset management procedures will be based on national norms. Subsidiaryrecords of fixed assets and stocks should be kept up to date and reconciled with control accounts andperiodic physical inventories.

11. External Audit. Project financial statements will be audited by independent auditor,satisfactory to the IFAD, in accordance with International Accounting Standards (IAS) on auditing andshall include such tests and reviews, as the auditor considers necessary under the circumstancesincluding physical verification of assets purchased. The auditor’s report will be submitted to IFAD nolater than six months after the closing of the borrower’s fiscal year. It is recommended that the IFADfinance project audit costs. The external audit will be conducted in accordance with Terms ofReference acceptable to IFAD. Auditors will be required to issue an opinion on project financialstatements including an opinion on the statements of expenditure (SOE) and special account (SA), asper the IFAD Guidelines on Project Audits – for Borrowers’ Use, and will produce a managementletter, identifying any internal control weaknesses, or areas of improvement.

12. To ensure that the first audit report is presented to IFAD within the stipulated period of sixmonths, the hiring of auditors will be completed as after project effectiveness as possible. Prior to theeffectiveness of the Project, the Project Implementing Entity shall make the request for proposal forselection of external auditors for the first two years of project implementation.

13. Assessment and risk mitigation. The Angola Market Oriented Smallholder AgricultureProject – MOSAP (IDA Credit 4502/ PHRD TF 57845 / IFAD Loan 736-AO) financed by World Bank,JBIC and IFAD, is currently under implementation by the Ministry of Agriculture. In the World Bank’sFM Assessment conducted during preparation concluded that overall risk related to the financialadministration of the project was substantial. Considering MOSAP`s assessment and interviewscarried out during preparation of the current Project the same level of risk applies to the ArtisanalFisheries and Aquaculture Project. To establish an acceptable control environment and to mitigate therisks of financial management, the following mitigation measures need to be provided by the IPA: (i)develop detailed FM arrangements in the appraisal mission; (ii) preparation of the FinancialManagement Procedures Manual at the time of Negotiations; (iii) purchase of a software-basedfinancial management and accounting system as a condition of project effectiveness; (iv) hiring theproject’s Financial Management Specialist as a condition of project effectiveness; and (v) hiringinternal and external auditors within four months after project effectiveness.


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14.

ATTACHMENT 1: GUIDELINES FOR THE PREPARATION OF THE TERMS OF REFERENCE FORTHE PROJECT AUDITOR

DRAFT TORS: AUDITOR

1. Audit objective. The objective of the audit is to enable the auditor to express an opinion on thefinancial reports of the Angola Fisheries and Aquaculture Project as of January 20yy to December 31,20yy, for the fiscal year then ending as reported in the special-purpose Project Financial Statements(PFS) and special-purpose Statements of Expenditures (SOE’s) and special account (SA). TheProject’s accounting system (books and records), which provides the basis for the preparation of thespecial-purpose PFS and special-purpose SOE’s, was established to record the financial transactionsof the Project, and is maintained by the Project’s implementing agency, the Instituto de PescaArtesanal (IPA) do Ministério das Pescas.

2. The audit will be carried out in accordance with cash basis and will include such tests andreviews, as the auditor considers necessary under the circumstances. Special attention will be paid toestablishing that: (i) all external funds have been used in accordance with the conditions stipulated inthe financing agreements, with due attention to economy and efficiency, and solely for the purposesfor which the financing was provided; (ii) counterpart funds have been provided by Minister ofFisheries/IPA and used in accordance with national or organizational financial regulations, with dueattention to economy and efficiency, and solely for the purposes for which they were provided; (iii)goods, consultancy and other services, and civil works financed out of project funds have beenprocured in accordance with stipulations in the financing agreement and/or government regulations;(iv) all necessary supporting documents, records and accounts have been kept in respect of all projectventures, including expenditures reported via SOEs or SAs; (v) the SA has been used in accordancewith the provisions of the financing agreement; and (vi) the project accounts have been prepared inaccordance with consistently applied cash basis and give a true and fair view of the financial status ofthe Project at [dd / mm/ yyyy] and of resources and expenditures for the year ended on that date.

3. Project financial statements. The Project Financial Statements (PFS’s) should include: (i)yearly and cumulative statements of sources and application of funds, which should discloseseparately IFADs funds, counterpart funds (government), other donor funds and beneficiaries funds;(ii) balance sheet, which should disclose bank and cash balances (that should agree with thestatement of sources and application of funds), fixed assets and liabilities; (iii) yearly and cumulativeSOEs by withdrawal application and category of expenditures; (iv) reconciliation of the SA; and (v)consolidated financial statements, where a project consists of more than one entity.

4. A reconciliation between the amounts shown as received by the project and those shown asbeing disbursed by IFAD should be attached as an annex to the PFS. As part of that reconciliation, theauditor will indicate the procedure used for disbursement (SA funds, letters of credit, specialcommitments, reimbursement or direct payment) and indicate whether the expenditure is fullydocumented or uses the SOE format.

5. Statements of expenditures (SOEs). In addition to the audit of the PFS, the audit will includea review of SOEs used as the basis for submitting withdrawal applications. The auditor will carry outtests and reviews as necessary and relevant to the circumstances. SOE expenditures will be carefullycompared for eligibility with relevant financial agreements, and the disbursement letter, and withreference to the Project Document Report for guidance when necessary. Where ineligibleexpenditures are identified as having been included in withdrawal applications and reimbursed,auditors will note these separately. A schedule listing individual SOEs withdrawal applications byreference number and amount should be attached to the PFS. The total withdrawals under the SOEprocedure should be part of the overall reconciliation of IFAD disbursements described above.

6. Special accounts (SAS). The auditor is also required to audit the activities of the SA(s)associated with the project, including the Authorized Allocation or Initial Deposit, replenishments,interest that may accrue on the outstanding balances, and the year-end balances. The auditor mustform an opinion as to the degree of compliance with IFAD procedures and the balance(s) of the SA(s)at year’s end. The audit should examine: (i) the eligibility of withdrawals from the SA during the periodunder review; (ii) the operation of the SA in accordance with the relevant financing agreement(s); (iii)


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the adequacy of internal controls within the project appropriate for this disbursement mechanism; and(iv) the use of correct exchange rate(s) to convert local currency expenditures to United States dollars.

7. Audit opinion. Besides a primary opinion on the Project Financial Statements, the annual auditreport of the Project Accounts should include a separate paragraph commenting on the accuracy andpropriety of expenditures withdrawn under SOE procedures and the extent to which the IFAD can relyon SOE’s as a basis for loan disbursement. The financial statements, including the audit report,should be received by the IFAD no later than five months after the end of the accounting period towhich the audit refers. The auditor should submit the report to the borrower’s designated agent ratherthan to any staff member of the project entity. The agent should then promptly forward two copies ofthe audited accounts and report to the IFAD.

8. Management letter. In addition to the audit reports, the auditor will prepare a “managementletter”, in which the auditor: (i) give’s comments and observations on the accounting records, systems,and controls that were examined during the course of the audit; (ii) Identifies specific deficiencies andareas of weakness in systems and controls and make recommendation for their improvement; (iii)reports on the degree of compliance of each of the financial covenants on the financing agreementand give comments, if any, on internal and external matters affecting such compliance; (iv)communicates matters that have come to attention during the audit which might have a significantimpact on the implementation of the project; and (v) brings to the borrower’s attention any othermatters that the auditors considers pertinent.

9. General. The auditor should be given access to all legal documents, correspondence, and anyother information associated with the Project and deemed necessary by the auditor. Confirmationshould also be obtained of amounts disbursed and outstanding at the IFAD. It is highly desirable thatthe auditor become familiar with the relevant IFAD Audit Guidelines or IFAD /World Bank Guidelinesfor audit, financial and procurement.

10. Auditor’s qualifications. The person appointed as the project auditor should: (i) have aninternationally recognized professional accounting qualification i.e. the person appointed should beeither a certified public accountant, a chartered accountant or should be the holder of an equivalentprofessional accounting qualification; (ii) be a member in good standing of a body of accountantsaffiliated to the International Federation of Accountants (IFAC); and; (iii) have experience andknowledge of the World Bank or IFAD`s current financial management requirements.

11. Key Staff. (i) Team Leader – a senior consultant with ten (10) years of audit works with auditsin the WB projects or IFAD projects, and a Master degree in one of the following fields: Economic,Accountability or Management, and recognized as a professional accounting qualification; (ii) anAuditor – a consultant with five (05) years of audit works with audits in the WB projects or IFADprojects, and a Economic Degree or any other related area; and (iii) an Auditor Assistant – Aconsultant with three (03) years of audit works, an Economic degree or any other related area, andgood audit knowledge.

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Appendix 8: Procurement

1. Procurement for the Project will be carried out in accordance with the IFAD`s “ProjectProcurement Guidelines” and “Procurement Handbook” (published in 2010), as well as the provisionsstipulated in the Loan Agreement. For each contract to be financed by the loan, the differentprocurement methods or consultant selection methods, the need for prequalification, estimated costs,prior review requirements, and time frame will be defined on Letter to the Borrower. Others aspectsagreed between the Borrower and the IFAD will be in the Procurement Plan. The Procurement Planwill be updated at least annually or as required to reflect the actual project implementation needs andimprovements in institutional capacity.

2. Procurement arrangements: The PCU will be aided by the contracting of anexperienced Procurement Specialist that will be contracted through the project launch. The FinancialProcedures Manual will provide: (i) the operational procedures of procurement, management ofcontracts and payment of receipts; (ii) a description of the monitoring system to execute contracts;and (iii) the creation of an archiving system and registry of procurement records. IFAD will providesupport in the Project’s first year to avoid possible delays in project execution. Resources for trainingin management of procurement will be foreseen in the project’s budget.

3. The procurement procedures to be applied by sub-recipients of funding, followingmethodologies of community participation in accordance with procedures acceptable to the comunas,which may include direct recruitment where there is competition, as described in the ProjectImplementation Manual (PIM). It is expected that communities will not have the capacity to managelarge contracts in the initial period of the Project, the procurement activities of subprojects costingmore than US$ 50,000 will be implemented with the support of PCU.

4. Procurement methods. The Project will follow the following means for procurement andcontracts of goods, works and non-consulting services: (i) International Competitive Bidding (ICB), (ii)National Competitive Bidding (NCB), (iii) International or National Shopping (IS/NS); and for theselection of consultants: (iv) Quality and Cost-based Selection (QCBS), (v) Quality-Bases Selection(QBS), (vi) Fixed Budget Selection (FBS), (vii) Selection based on Consultant Qualifications (SQC),(viii) Least-Cost Selection (LCS) and (ix) selection of individual consultants (CI). Procurementinvolving local communities will be conducted according to procedures to be detailed in the PIM andacceptable to IFAD.

5. Procurement of goods, works and non-consulting services. ICB procurement will bedone in accordance with IFAD Procurement Guidelines and Handbook, using the World Bank’sStandard Bidding Documents (SBD). All ICBs will be subject to the IFAD’s prior review. A SBD agreedbetween IFAD and the PCU/IPA for all NCBs shall apply. For the: (i) Procurement of Works, ICB forthe procurement of works is mandatory for all contracts estimated to cost the equivalent of US$500,000 or more. For small value civil works, shopping would be used; (ii) Procurement of Goods andNon-consulting Services, ICB for the procurement of goods and non-consulting services is mandatoryfor all contracts estimated to cost the equivalent of US$200,000 or more. For small value goods andprocurement of construction materials to carry out small civil works, shopping procedures will befollowed; and (iii) Selection of Consultants, the selection and employment of consultants will becarried out under arrangements acceptable to the IFAD using the World Bank’s Standard Forms andContracts. Consulting services estimated to cost US$100,000 or more would follow QCBSprocedures. Single source selection may be used, with the IFAD’s prior approval, and in exceptionalcircumstances, as provided for in the Guidelines and as approved by the IFAD.

6. Procurement reviews. The IFAD’s review of selection of consultants will be inaccordance with Procurement Guidelines and the provisions stipulated in the Letter to the Borrower.The IFAD’s regulations establish prior review for thresholds exceeding US$200,000 for goods andworks and US$100,000 for consulting services. This assessment proposes the following thresholdsfor prior review by the IFAD. In all cases of single-source selection (contracts with firms or withindividual consultants), the IFAD should give the “no objection” to the selection process for theproposed assignment.

7. Advertising. A General Procurement Notice for hiring of consultant services, and the ICBfor goods and works, should be published in the United Nations Development Business and Market.

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Specific Procurement Notices and Request for Expressions of Interest will be advertised inaccordance with the provisions of the Guidelines.

8. Procurement records. Procurement records of the Project, including records of timetaken to complete key steps in the process and procurement activities will be maintained by Project.These records will be maintained for at least two years after the end of the fiscal year in which the lastdisbursement was made. The records for goods and works will include public notices, biddingdocuments and addenda, bid opening information, bid evaluation reports, formal appeals by biddersand outcomes, signed contracts with related addenda, records on claims and other useful information.The records for consultants will include public notices for expression of interest, request for proposalsand addenda, technical and financial reports, formal appeals by consultants and outcomes, signedcontracts and related addenda; records on claims and other useful information.

9. Procurement audits. Given the anticipated large number of relatively small contractsthat will not require IFAD prior review, the country context and the project risk indicated above, theneed of a more systematic ex-post review is high. In addition to the semi-annual supervision missionsby IFAD, the Government will carry out annual procurement audits of the project. These audits will becarried out under terms and conditions and by independent consultants whose qualifications areacceptable to the IFAD. The audits will include an action plan to improve performance, whererequired, which will be submitted to the IFAD and discussed with Government.

Table 1. Thresholds for Procurement Methods and Prior Review

ExpenditureCategory

Contract Value Thresholds(USD)

Procurement Method Contracts Subjects to PriorReview (USD)

Works >500,000

>200,000 – 500,000100,000 - 200,000<100,000

ICB

NCBNCBShopping

All

AllPost reviewPost review(small works)

Goods andnon-ConsultantServices

>200,000

75,000-200,000

<75,000

ICB

NCB

ShoppingDirect Contracting

All

First two contracts; and allabove $200,000Post ReviewAll

ConsultantServicesFirms

Individual

>100,000<100,000

Procurement SpecialistProject Unit Staff;Others

QCBSQCBS, LCS e CQS

ICICIC

AllFirst two contracts

AllAllPost Review


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ATTACHMENT 1: Procurement Plan

1. The implementing agency has to prepare its procurement plan for the activities to be carried outduring the first 18 months of project implementation (see Table 1 below). Upon completion, the planwill be sent by the PCU to IFAD for review and approval and filed in the project files and will also beaccessible through the project’s database. The procurement plan should consist of: (i) goods, works,and non-consulting services, including contract packaging, applicable procedures, and processscheduling; and (ii) a consultant and training provider’s selection process plan for the projects’ trainingand consultant services, including contract types, applicable procedures, and selection criteria.

2. The procurement and consultant selection process plan will be updated periodically and shallbe submitted to the IFAD with the AWPB of each year. Such updating shall include: (i) list of contractscompleted, under execution, under procurement, to be procured in the upcoming calendar semester,and, tentatively in the subsequent semester; (ii) costs of completed contracts, contracts underexecution and the estimated costs for upcoming contracts; (iii) bidding schedule; and (iv) particularmethods of procurement of goods, works, and non-consulting services or selection of consultants inaccordance to a format agreed with the IFAD. The working instructions shall be detailed in the PIMindicating the standard bidding documents and request for proposals to be used, the samples forreporting on procurement, forms of contract, timetables, TOR model, and any other relevantinformation related to procurement for each particular operation.

3. The Procurement Plan is required to reflect the actual project implementation needs andimprovements in institutional capacity. It is expected that the procurement plan will be approvedbefore project negotiations.

Table 1. Structure for the Procurement Plan for 18 months

Ref.No.

Component/Category

Contract(Description)

EstimatedCost (USD)

Procurement/SelectionMethod

Reviewby IFAD(Prior/Post)

ExpectedBid-openingDate

Comments

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ATTACHMENT 2 : ASSESSMENT OF CAPACITY TO IMPLEMENT PROCUREMENT

1. Procurement activities will be carried out by PCU/IPA and its representatives in the participatingprovinces. The procurement in IPA is carried out by the DAF, where the bidding committee is installedwith procurement staff. In general, the implementing agency has no previous experience with IFAD orWorld Bank financed procurement.

2. A rapid assessment of the capacity of the executing agency to implement procurement actionsfor the Project was carried out in June 2013. The assessment tried to review the organizationalstructures for project implementation, the procurement offices of the DAP and the respectiveadministrative and financial unit in the DAP. The Administrative and Financial Unit is not familiar withIFAD or World Bank Guidelines. A visit to MOSAP’s PCU was made to help in this rapid assessment.

3. The overall risk assessment for the implementing agency is rated as high. Remedial actionshave been identified and will need to be discussed and agreement reached between IFAD and theclient to effectively mitigate these key procurement risks. These are outlined below in theProcurement Action Plan above.

Table 1. Procurement Action Plan

Action Plan ByWhom

Timeframe Approval /Review

1 Establish a Procurement Area within theAdministrative and Financial Unit of the PCUwhere all technical and fiduciary reporting forthe Project will be consolidated

IPA betweenappraisal andnegotiations

IFAD

2 Install a capacity-building program for theprocurement staff and regularly train regardingIFAD policies and procedures

IPA by projectlaunch

IFAD

3 Establish a special bidding committee in IPA,with at least three members who have someexperience in working with IFAD ProcurementGuidelines

IPA prior tonegotiations

IFAD

4 Retain at least two full-time procurement staff,as well as one ad hoc consultant, in PCU(selection processes subject to the IFAD’sapproval prior to the signature of the contracts)

IPA throughoutproject

implementation

IFAD

5 Design the entire procurement cycle andarrangements including clearances andapprovals and description of the roles of allparticipant agency (this document shall beagreed with and approved by the IPA authority)

IPA beforenegotiations

IFAD

6 Include procurement workflows and processesand procurement procedures for subprojects, inthe PIM


IFAD


111

Action Plan ByWhom

Timeframe Approval /Review

7 Develop a procurement system that canproduce reports, including procurement plansand inventory

IPA beforeeffectiveness

IFAD

8 Provide office space with appropriate privacy forthe all procurement staff

IPA beforeeffectiveness

IFAD

9 Train procurement staff in IFAD policies IFAD beforeeffectiveness

IFAD

10 Design procurement plan for the first eighteenmonths of project implementation


IFAD

4. With the measures above, the procurement arrangements for the Project are consideredadequate. The Procurement Plan will be updated at least annually, or as required, to reflect the actualproject implementation needs and improvements in institutional capacity.

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Appendix 9: Project Costs

Table of ContentsA. Main assumptions for cost estimationB. Project costsC. Financing Plan

Tables

Table 1: Price Inflation Projection (%)Table 2: Expenditure AccountsTable 3: Project Costs by ComponentTable 4: Proposed Financing Plan by Component

Attachments to appendix 9

Attachment 1. Summary Cost Tables

Table 1: Components Project Cost SummaryTable 2: Expenditure Accounts Project Cost SummaryTable 3: Expenditure Accounts by Components – Base CostsTable 4: Expenditure Accounts by Components – Totals including contingenciesTable 5: Project Components by Year – Totals Including Contingencies (US$)Table 6: Expenditure Accounts by Year –Totals Including Contingencies (US$)Table 7: Components by FinanciersTable 8: Disbursement Accounts by FinanciersTable 9: Expenditure Accounts by FinanciersTable 10: Disbursements by Semesters and Government Cash Flow

Attachment 2. Detailed Cost Tables

Table 1.1: Institutional Capacity BuildingTable 1.2: Improved participation in the local development processTable 1.3: Increased quantity and quality of fish produced and sold on a sustainable basisTable 1.4: Improved Market-related InfrastructuresTable 2.1: Institutional Capacity BuildingTable 2.2: Improved participation in the local development processTable 2.3: Increased quantity and quality of fish produced in fish ponds and sold on a sustainablebasisTable 2.4: Hatchery effectively producing inputs for projectTable 3: Project Coordination Unit– Base Costs


114

Appendix 9: Project Costs

A. Main assumptions for cost estimation

Project cost estimates have been made using the following assumptions underlying the estimation ofthe project costs, and the financing plan for the project: Project Period. The Project would be financed over a five-year period: 2015-2019. Project costs are based on July 2013 prices. Inflation. The year-on-year rate of consumer price inflation slowed in 2014 to a multi-decade low

of 7.2% in September 2014. This inflation slowdown is attributable to a gradual economicslowdown in Angola and declining of world commodity and fuel prices. Although the reduction offuel subsidies could lead to a rise in inflationary pressures, it is expected that the cautiousmonetary policy of the Angola Central Bank and currency stability willkeep the average annual rate in under 8% for the period in 2015 - 19. For international foreigninflation, annual average of 2.7% was applied to the project period following World Bankprojections

Table 1: Price Inflation Projection:Up-to project start-up 2015 2016 2017 2018 2019

7% 7.3% 7.0% 6.7% 6.4% 7.7%Source: IMF, Angola, World Economic Outlook Database, September 2014

Exchange Rate. The base rate of exchange at data collection has been set at 95.00 Kwanza(Kz)to 1.00 USD and is updated to 98.00 according to the prevailing rate in October 2014 andconstant purchasing power exchange rates assumed over the project implementation period.Project costs are presented in both Kz and USD.

Taxes and Duties. Almost all items procured under the Project would be purchased locally. TheGovernment of Angola would finance the cost of all taxes and duties. They reflect consumptiontax rate of 10%. The items to be imported for the project attract import and excise duties ofvarying proportions as stated in table 2

Expenditure Accounts. The expenditure accounts, together with the breakdown of taxes,physical contingencies and the average rates for foreign exchange are shown in table 1 below.Physical contingencies have only been applied to items for which the required amounts could notreasonably be estimated. Price contingencies have been applied to all categories

Table 2: Expenditure Accounts

Description Taxes%

PhysicalContingency

%

FEX%

Investment CostsA. Civil Works 3.5 10 40B. Transport and Equipment

Vehicles 12.7-24.5 0 70Equipment and Materials 14.9-21.9 0-10 0-50

C. Technical AssistanceTraining, Studies and workshops 10 0 30International TA 5.25 0 94National TA 10 0 0Audit 10 0 30

Recurrent CostsD. Project Staff 0 0 0E. Operation and Maintenance 10 0 30


115

B. Project costs.

Total Project costs. Based on current 2013 prices, the total investment and incremental recurrentproject costs, including physical and price contingencies, is estimated at USD 10.4 million(Kz 10 million) (Table 3). Physical and price contingencies make up 14.4 percent of the Project costs.The foreign exchange component is estimated at USD 0.82 million or about 8 percent of the totalproject costs. Taxes make up USD 0.72 million (6.9 percent of the project costs). See Table 3 below.

Table 3: Project Costs by Component% % Total

(Kz '000) (US$ '000) Foreign BaseLocal Foreign Total Local Foreign Total Exchange Costs

Inland FisheryInstitutional Capacity strengthened /a 52,322 10,088 62,410 534 103 637 16 7Improved community participation in economic and local development process 190,693 8,248 198,941 1,946 84 2,030 4 23Improved fishery productivity & sustainable marketing 130,038 7,407 137,445 1,327 76 1,403 5 16Market infrastructures 84,835 - 84,835 866 - 866 - 10

Subtotal Inland Fishery 457,888 25,743 483,631 4,672 263 4,935 5 56Aquaculture

Institutional capacity strengthening /b 33,511 - 33,511 342 - 342 - 4Improved community participation in economic and local development process 35,815 - 35,815 365 - 365 - 4Improved aquaculture productivity & sustainable marketing 99,332 28,852 128,185 1,014 294 1,308 23 15Improved access to inputs 21,340 1,751 23,091 218 18 236 8 3

Subtotal Aquaculture 189,998 30,603 220,602 1,939 312 2,251 14 25Project Management 142,826 22,901 165,728 1,457 234 1,691 14 19Total BASELINE COSTS 790,712 79,248 869,960 8,068 809 8,877 9 100

Physical Contingencies 11,377 - 11,377 116 - 116 - 1Price Contingencies 136,440 2,012 138,452 1,392 21 1,413 1 16

Total PROJECT COSTS 938,530 81,260 1,019,790 9,577 829 10,406 8 117


C. Financing Plan.

The Project is to be financed by IFAD and the Government of Angola. The IFAD loan amounts to US$9.4 million (90% of total project cost). The Government contribution is estimated at US$ 1.0 million(9.5% of total project cost) to cover actual costs, taxes and duties. The Performance-Based Allocation(PBA) for Angola for 2013-2015 is US$ 9.1 million. A funding gap of US$ 0.3 million thus exists. Thisis to be funded through additional internal resources, either by adjusting the 2013-2015 PBA orthrough the 2016-2018 PBA. Approval for this additional financing will, if applicable, be sought fromthe Executive Board when such funds become available. Table 4 below provides a summary bycategory of the proposed financing plan.




Investment CostsCivil Works 52 3.5 1,429 96.5 1,480 14.2 - 1,429 52Transport and Equipment



Audit 14 10.0 126 90.0 140 1.3 39 86 14Training, Studies, Meetings and Workshops 477 10.0 4,297 90.0 4,774 45.9 178 4,119 477Technical Assistance - Local 25 10.0 221 90.0 245 2.4 - 221 25Technical Assistance - International 41 8.0 471 92.0 512 4.9 299 172 41

Subtotal Technical Assistance 557 9.8 5,115 90.2 5,671 54.5 516 4,599 557Total Investment Costs 680 8.9 6,997 91.1 7,677 73.8 715 6,283 680Recurrent Costs

Project Staff - - 1,985 100.0 1,985 19.1 - 1,985 -IPA Staff 268 79.4 69 20.6 338 3.2 - 338 -Operation and Maintenance 41 10.0 366 90.0 406 3.9 114 251 41

Total Recurrent Costs 309 11.3 2,420 88.7 2,729 26.2 114 2,574 41Total PROJECT COSTS 989 9.5 9,417 90.5 10,406 100.0 829 8,856 721


116

The Ministry of Fisheries is responsible for financial oversight of all government programmes in thesector. It also supervises the budget process and the allocation of project financing from externalsources. Other summary financing tables are provided in Attachment 1. Detailed cost tables areavailable in Attachment 2.

D. Main assumptions for cost estimation

1. Project cost estimates have been made using the following assumptions underlying theestimation of the project costs and the financing plan for the Project:

Project Period. The Project would be financed over a five-year period. Project costs are based on July 2013 prices. Inflation. The year-on-year rate of consumer price inflation slowed to a multi-decade low of

8.9% in January 2013 and has remained around 9% since then. This inflation slowdown isattributable to a gradual economic slowdown in Angola and declining of world commodityand fuel prices. In addition, the Government of Angola appears to have ruled out any furthernear-term reduction in the fuel price subsidy. However, the increase in liquidity in the secondhalf of 2013 as a result of new oil legislation could exert some upward pressure on prices.Both the International Monetary Fund (IMF) and the Economist Intelligence Unit (EIU)forecasts the inflation rate to reach 8.3-8.4% in 2014 and to slowdown further to between 7-7.7% in 2018. For international foreign inflation, annual average of 2.16% was applied to theproject period following World Bank projections

Table 1: Price Inflation Projection

Up-to project start-up 2014 2015 2016 2017 2018

9.0% 8.5% 8.0% 7.8% 7.7% 7.7%Source: EIU, Angola Country Report, June 2013

Exchange Rate. The base rate of exchange has been set at 95.00 Kwanza (Kz) to 1.00USD prevailing in July 2013 rate of exchange and constant purchasing power exchangerates assumed over the project implementation period. Project costs are presented in bothKz and USD;

Taxes and Duties. Almost all items procured under the Project would be purchased locally.The Government of Angola would finance the cost of all taxes and duties. They reflectconsumption rate of 10%. The items to be imported for the project attract import and exciseduties of varying proportions as stated in Table 2; and

Expenditure Accounts. The expenditure accounts, together with the breakdown of taxes,physical contingencies and the average rates for foreign exchange are shown in Table 1below. Physical contingencies have only been applied to items for which the requiredamounts could not reasonably be estimated. Price contingencies have been applied to allcategories.

Table 2: Expenditure Accounts

Description Taxes%

PhysicalContingency

%

FEX%

Investment CostsE. Civil Works 3.5 10 40

F. Transport and Equipment


117

Vehicles 12.7-24.5 0 70

Equipment and Materials 14.9-21.9 0-10 0-50

G. Technical AssistanceTraining, Studies andworkshops

10 0 30

International TA 5.25 0 94

National TA 10 0 0

Audit 10 0 30

Recurrent CostsH. Project Staff 0 0 0

E. Operation and Maintenance 10 0 30


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E. Project costs

2. Total Project costs. Based on current 2013 prices, the total investment and incrementalrecurrent project costs, including physical and price contingencies, is estimated at USD 10.4 million(Kz 988 million). Physical and price contingencies make up 19% of the Project costs. The foreignexchange component is estimated at USD 0.99 million or about 10% of the total project costs. Taxesmake up USD 0.67 million (6.4% of the project costs). See Table 3 below.

Table 3: Project Costs by Component











B. Project financing

3. The Project is financed by IFAD and the Government. The IFAD loan amounts to USD 9.45million (91% of total project cost). The Government contribution is estimated at USD 0.95 million (9%of total project cost) to cover actual costs, taxes and duties.

4. The Performance-Based Allocation (PBA) for Angola for 2013-2015 is USD 6.5 million. Afunding gap of USD 2.95 million thus exist. It is proposed that it is funded through additional internalresource. Table 4 provides a summary by components of the proposed financing plan.


119



(US$ '000)











120

ATTACHMENTS TO APPENDIX 9

ATTACHMENT 1: SUMMARY COST TABLES

Contents

Table 1: Components Project Cost SummaryTable 2: Expenditure Accounts Project Cost SummaryTable 3: Expenditure Accounts by Components – Totals including contingenciesTable 4: Project Components by Year – Totals Including ContingenciesTable 5: Expenditure Accounts by Year –Totals Including ContingenciesTable 6: Components by FinanciersTable 7: Disbursement Accounts by FinanciersTable 8: Expenditure Accounts by Financiers


121

Table 1: Components Project Cost Summary












122

Table 2: Expenditure Accounts Project Cost Summary

AngolaArtisanal Fisheries and Aquaculture Project

Expenditure Accounts Project Cost Summary



Investment CostsCivil Works 113 772 - 113 772 1 161 - 1 161 - 13Transport and Equipment

Vehicles, Boats and Motorbikes 5 678 8 452 14 130 58 86 144 60 2Equipment 21 772 10 690 32 462 222 109 331 33 4

Subtotal Transport and Equipment 27 450 19 141 46 592 280 195 475 41 5Technical Assistance

Audit 8 325 3 675 12 000 85 38 122 31 1Training, Studies, Meetings and Workshops 383 809 16 464 400 273 3 916 168 4 084 4 46Technical Assistance - Local 20 591 - 20 591 210 - 210 - 2Technical Assistance - International 20 859 29 298 50 157 213 299 512 58 6

Subtotal Technical Assistance 433 584 49 437 483 021 4 424 504 4 929 10 56Total Investment Costs 574 806 68 578 643 384 5 865 700 6 565 11 74Recurrent Costs

Project Staff 164 445 - 164 445 1 678 - 1 678 - 19IPA Staff 27 292 - 27 292 278 - 278 - 3Operation and Maintenance 24 170 10 670 34 839 247 109 356 31 4

Total Recurrent Costs 215 906 10 670 226 576 2 203 109 2 312 5 26Total BASELINE COSTS 790 712 79 248 869 960 8 068 809 8 877 9 100

Physical Contingencies 11 377 - 11 377 116 - 116 - 1Price Contingencies 136 440 2 012 138 452 1 392 21 1 413 1 16



123

Table 3: Expenditure Accounts by Components – Totals including contingencies


Expenditure Accounts by Components - Base Costs(US$ '000)

Inland Fishery AquacultureImproved Improved

community Improved community Improvedparticipation fishery participation aquaculturein economic productivity in economic productivity Improved

Institutional and local & Institutional and local & access PhysicalCapacity development sustainable Market capacity development sustainable to Project Contingencies

strengthened process marketing infrastructures strengthening process marketing inputs Management Total % Amount

Investment CostsCivil Works - - - 805 - - 213 143 - 1 161 10.0 116Transport and Equipment

Vehicles, Boats and Motorbikes - - 11 - - - 42 - 91 144 - -Equipment - - 52 - - - 179 68 33 331 - -

Subtotal Transport and Equipment - - 63 - - - 220 68 124 475 - -Technical Assistance

Audit - - - - - - - - 122 122 - -Training, Studies, Meetings and Workshops 372 2 003 889 - 117 327 264 12 100 4 084 - -Technical Assistance - Local 7 7 51 61 2 39 37 - 7 210 - -Technical Assistance - International 136 20 39 - 48 - 205 13 51 512 - -

Subtotal Technical Assistance 515 2 030 978 61 167 365 507 24 280 4 929 - -Total Investment Costs 515 2 030 1 041 866 167 365 941 236 404 6 565 1.8 116Recurrent Costs

Project Staff 122 - 174 - 174 - 174 - 1 032 1 678 - -IPA Staff - - 176 - - - 103 - - 278 - -Operation and Maintenance - - 11 - - - 90 - 255 356 - -

Total Recurrent Costs 122 - 361 - 174 - 367 - 1 287 2 312 - -Total BASELINE COSTS 637 2 030 1 403 866 342 365 1 308 236 1 691 8 877 1.3 116

Physical Contingencies - - - 80 - - 21 14 - 116 - -Price Contingencies 60 352 249 158 49 67 178 32 267 1 413 1.3 18

Total PROJECT COSTS 697 2 382 1 652 1 104 391 433 1 507 282 1 958 10 406 1.3 135

Taxes 52 237 123 43 16 43 105 17 83 721 0.7 5Foreign Exchange 107 90 77 - - - 297 18 240 829 - -


124

Table 4: Project Components by Year – Totals Including Contingencies


Project Components by Year -- Totals Including Contingencies(US$ '000)

Totals Including Contingencies2015 2016 2017 2018 2019 Total

Inland FisheryInstitutional Capacity strengthened /a 234 136 172 31 123 697Improved community participation in economic and local development process 210 568 875 450 278 2 382Improved fishery productivity & sustainable marketing 218 344 463 376 250 1 652Market infrastructures 28 386 495 196 - 1 104

Subtotal Inland Fishery 689 1 435 2 005 1 054 652 5 835Aquaculture

Institutional capacity strengthening /b 67 107 100 67 51 391Improved community participation in economic and local development process 41 102 145 86 59 433Improved aquaculture productivity & sustainable marketing 287 330 437 262 191 1 507Improved access to inputs 58 116 59 26 23 282

Subtotal Aquaculture 453 656 740 440 324 2 614Project Management 472 355 364 373 395 1 958

Total PROJECT COSTS 1 614 2 446 3 109 1 866 1 371 10 406



125

Table 5: Expenditure Accounts by Year –Totals Including Contingencies (US$ 000)


Expenditure Accounts by Years -- Totals Including Contingencies(US$ '000)


Investment CostsCivil Works 105 500 638 237 - 1 480Transport and Equipment

Vehicles, Boats and Motorbikes 139 - 7 - - 147Equipment 116 45 72 75 70 379

Subtotal Transport and Equipment 256 45 79 75 70 526Technical Assistance

Audit 25 27 28 29 31 140Training, Studies, Meetings and Workshops 649 1 109 1 547 861 608 4 774Technical Assistance - Local 51 53 60 47 35 245Technical Assistance - International 51 203 182 51 26 512

Subtotal Technical Assistance 776 1 391 1 817 988 700 5 671Total Investment Costs 1 137 1 936 2 535 1 300 770 7 677Recurrent Costs

Project Staff 365 391 418 393 418 1 985IPA Staff 41 43 75 86 92 338Operation and Maintenance 72 76 82 86 90 406

Total Recurrent Costs 477 510 575 566 601 2 729Total PROJECT COSTS 1 614 2 446 3 109 1 866 1 371 10 406


126

Table 6: Components by Financiers


Components by Financiers(US$ '000)



Inland FisheryInstitutional Capacity strengthened /a 52 7.5 645 92.5 697 6.7 107 538 52Improved community participation in economic and local development process 237 10.0 2 144 90.0 2 382 22.9 90 2 055 237Improved fishery productivity & sustainable marketing 294 17.8 1 358 82.2 1 652 15.9 77 1 451 123Market infrastructures 43 3.9 1 061 96.1 1 104 10.6 - 1 061 43

Subtotal Inland Fishery 627 10.7 5 208 89.3 5 835 56.1 274 5 104 456Aquaculture

Institutional capacity strengthening /b 16 4.1 375 95.9 391 3.8 - 375 16Improved community participation in economic and local development process 43 10.0 390 90.0 433 4.2 - 390 43Improved aquaculture productivity & sustainable marketing 202 13.4 1 305 86.6 1 507 14.5 297 1 105 105Improved access to inputs 17 6.1 265 93.9 282 2.7 18 247 17

Subtotal Aquaculture 279 10.7 2 335 89.3 2 614 25.1 315 2 117 182Project Management 83 4.2 1 875 95.8 1 958 18.8 240 1 634 83

Total PROJECT COSTS 989 9.5 9 417 90.5 10 406 100.0 829 8 856 721



127

Table 7: Expenditure Accounts by Financiers US$ 000


(US$ '000)











128

Table 8: Disbursements by Financiers (US$ 000)

AngolaArtisanal Fisheries and Aquaculture ProjectDisbursement Accounts by Financiers

(US$ '000)



Civil Works 52 3.5 1 429 96.5 1 480 14.2 - 1 429 52Goods and Equipment 71 13.6 454 86.4 526 5.1 199 255 71Technical Assistance 543 9.8 4 989 90.2 5 531 53.2 477 4 512 543Recurrent Costs 323 11.3 2 546 88.7 2 869 27.6 154 2 660 55

Total PROJECT COSTS 989 9.5 9 417 90.5 10 406 100.0 829 8 856 721


129


\a (national, provincial, local / extension services) Project Components by Year -- Investment/Recurrent Costs\b (national, provincial, local / extension services) (US$ '000)


Inland FisheryInstitutional Capacity strengthened /a

Investment Costs 191 91 124 31 123 561Recurrent Costs 42 45 48 - - 136

Subtotal Institutional Capacity strengthened 234 136 172 31 123 697Improved community participation in economic and local development process

Investment Costs 210 568 875 450 278 2 382Improved fishery productivity & sustainable marketing

Investment Costs 155 277 373 274 141 1 218Recurrent Costs 63 68 91 103 109 433

Subtotal Improved fishery productivity & sustainable marketing 218 344 463 376 250 1 652Market infrastructures

Investment Costs 28 386 495 196 - 1 104Subtotal Inland Fishery 689 1 435 2 005 1 054 652 5 835Aquaculture

Institutional capacity strengthening /bInvestment Costs 31 68 58 23 4 184Recurrent Costs 36 39 41 44 47 207

Subtotal Institutional capacity strengthening 67 107 100 67 51 391Improved community participation in economic and local development process

Investment Costs 41 102 145 86 59 433Improved aquaculture productivity & sustainable marketing

Investment Costs 217 256 346 165 88 1 072Recurrent Costs 70 74 91 97 103 435

Subtotal Improved aquaculture productivity & sustainable marketing 287 330 437 262 191 1 507Improved access to inputs

Investment Costs 58 116 59 26 23 282Subtotal Aquaculture 453 656 740 440 324 2 614Project Management

Investment Costs 205 71 61 50 53 440Recurrent Costs 266 284 303 322 342 1 518

Subtotal Project Management 472 355 364 373 395 1 958Total PROJECT COSTS 1 614 2 446 3 109 1 866 1 371 10 406

Total Investment Costs 1 137 1 936 2 535 1 300 770 7 677Total Recurrent Costs 477 510 575 566 601 2 729


130

ATTACHMENT 2: DETAILED COST TABLES

Table 1.1: Institutional Capacity Building

Quantities Unit Cost Base Cost (US$ '000) Totals Including Contingencies (US$ '000)Unit 2015 2016 2017 2018 2019 Total (US$) 2015 2016 2017 2018 2019 Total 2015 2016 2017 2018 2019 Total

Investment CostsTraining and capacity development for national, provincial and local institions

Baseline and Sensus Study lump sum 1 - - - - 1 150.000 150 - - - - 150 151 - - - - 151Special Study on vulnerability women headed household /b lump sum - 1 - - - 1 25.000 - 25 - - - 25 - 27 - - - 27Special Study on foodsecurity and nutrition /c lump sum - - 1 - - 1 25.000 - - 25 - - 25 - - 28 - - 28Training IPA staff /d Participant 15 - 15 - - 30 1.500 23 - 23 - - 45 23 - 26 - - 48Refresh IPA extension staff of provinces /e participant - 15 - 15 - 30 900 - 14 - 14 - 27 - 15 - 17 - 31Training attendance /f per diem 15 15 15 15 - 60 150 2 2 2 2 - 9 2 2 3 3 - 10End of project assessment /g lump sum - - - - 1 1 100.000 - - - - 100 100 - - - - 123 123

Subtotal Training and capacity development for national, provincial and local institions 175 41 50 16 100 381 176 43 56 19 123 418Technical Assistance

Senior Gender Expert /h person/month 0.5 0.5 - - - 1 25.000 13 13 - - - 25 12 12 - - - 24Fisheries Monitoring system lump sum - 0.5 1 - - 1.5 50.000 - 25 50 - - 75 - 24 48 - - 73Inland Fisheries Zone Management /i person/month - - 0.5 0.5 - 1 25.000 - - 13 13 - 25 - - 12 12 - 24Climate Change Expert /j person/month - 1 1 - - 2 7.000 - 7 7 - - 14 - 7 7 - - 14Trainer HIV/AIDS amount 0.5 0.5 - - - 1 7.000 4 4 - - - 7 4 4 - - - 7

Subtotal Technical Assistance 16 48 70 13 - 146 16 47 68 12 - 143Total Investment Costs 191 89 119 28 100 527 191 91 124 31 123 561Recurrent Costs

Community Development Specialist amount 12 12 12 - - 36 3.500 42 42 42 - - 126 42 45 48 - - 136Total Recurrent Costs 42 42 42 - - 126 42 45 48 - - 136Total 233 131 161 28 100 653 234 136 172 31 123 697

_________________________________\a (national, provincial, local/extension service)\b For both Inland fishery as Aquaculture communities, including fee,per diem, travel and print\c For both Inland fishery as Aquaculture communities\d 5 day training session, on fish technology, fisheries management, outreach, climate change, gender, social issues, HIV/AIDS\e 3 day training session for all topics/ participant\f including travel\g Including Vulnerability and Foodsecurity assessment and Census update\h including fee, travel, per diem\i including fee, travel, per diem\j including fee, travel and per diem


131

Table 1.2: Improved participation in the local development process


Investment CostsClimate Change Training, Studies and Workshops /a

Climate change Awareness workshop - 1 - - - 1 5.000 - 5 - - - 5 - 5 - - - 5Climate Change Vulnerability Assessment Training /b training - 1 - - - 1 15.000 - 15 - - - 15 - 16 - - - 16Climate Change Vulnerability Assessment /c Assessment - 20 40 - - 60 2.000 - 40 80 - - 120 - 43 92 - - 135CCV outcome workshop /d workshop - - 1 - - 1 5.000 - - 5 - - 5 - - 6 - - 6CCV report dissemination copy - - 200 - - 200 25 - - 5 - - 5 - - 6 - - 6Study on Disaster Risk Management System /e person/month - 1 - - - 1 20.000 - 20 - - - 20 - 20 - - - 20CC vulnerability and risk assessment report and adaptation investment proposal /f person/month - - 1 - - 1 20.000 - - 20 - - 20 - - 22 - - 22

Subtotal Climate Change Training, Studies and Workshops - 80 110 - - 190 - 84 126 - - 210Community capacity development

Community Development Facilitation SP capacity building /g training 1 - 1 - - 2 12.000 12 - 12 - - 24 12 - 14 - - 26Community Development Facilitation Phase I /h community 10 20 30 - - 60 12.000 120 240 360 - - 720 121 258 414 - - 793Community Development Facilitation Phase II&III /i community - 10 20 30 - 60 7.000 - 70 140 210 - 420 - 75 161 257 - 494Community Reporting and planning /j workshop - 10 20 30 60 120 2.000 - 20 40 60 120 240 - 21 45 70 148 284Saving Group Development /k group 10 10 - - - 20 7.000 70 70 - - - 140 70 75 - - - 146Saving group mentoring /l group - 10 20 20 20 70 5.000 - 50 100 100 100 350 - 54 115 123 130 422

Subtotal Community capacity development 202 450 652 370 220 1 894 203 484 749 450 278 2 164Nutrition study /m person/day 1 - - - - 1 7.000 7 - - - - 7 7 - - - - 7

Total 209 530 762 370 220 2 091 210 568 875 450 278 2 382

_________________________________\a For both Inland fishery as Aquaculture institutions\b national 3day training, for 10 assesment facilitators\c average 6 assesments per faciltator\d With assessment outcomes of inland fisheries and Aquaculture\e includes fee, travel and per diem\f includes fee, travel, per diem\g Training of Service Provider in a 5 day training for 12 persons\h Community Development Plan in a 20 day facilitation (covering Climate change, gender, nutrition, mine detection, HIV/AIDS) / community / year, including facilitator and travel\i a 10 day follow-up facilitation/ community, including facilitator and travel\j Inclusion in municipal goverment plans, including facilitator per diem and local costs\k Establishment of saving groups and training in Financial Management skills, 5 day training.\l supervision by specialized service providers, 4 visits / group / yr\m A study on local food consumption patterns


132

Table 1.3: Increased quantity and quality of fish produced and sold on a sustainable basis


Investment CostsEquipment for demonstration

Gas Freezers no. - 5 5 5 - 15 1.800 - 9 9 9 - 27 - 9 10 10 - 29Insulated Ice Box no. 10 50 50 20 - 130 120 1 6 6 2 - 16 1 6 6 3 - 17

Subtotal Equipment for demonstration 1 15 15 11 - 43 1 16 16 13 - 46Vehicles

Motorbikes /a no. 5 - 3 - - 8 1.400 7 - 4 - - 11 7 - 4 - - 12Inland Fishery Market & Processing Improvement

Market Study lump sum 1 - - - - 1 25.000 25 - - - - 25 25 - - - - 25Follow-up Market Study /b lump sum - - 1 - - 1 10.000 - - 10 - - 10 - - 12 - - 12End-of-project Market study /c lump sum - - - - 1 1 15.000 - - - - 15 15 - - - - 20 20Training of fisherfolks, fish processors and traders /d community 40 100 150 120 40 450 1.500 60 150 225 180 60 675 60 161 259 221 78 779Production of training material /e set - 1 1 - - 2 10.000 - 10 10 - - 20 - 11 12 - - 22TV/Radio broadcast programmes broadcast - 6 6 6 6 24 500 - 3 3 3 3 12 - 3 3 4 4 14Promotion of income generating activities lump sum - - 1 - - 1 10.000 - - 10 - - 10 - - 12 - - 12Functional Literacy Training (ToT) /f community 20 40 - - - 60 1.000 20 40 - - - 60 20 43 - - - 63Community Functional Literacy trainer incentive /g trainer - 20 60 60 60 200 500 - 10 30 30 30 100 - 11 35 37 39 121

Subtotal Inland Fishery Market & Processing Improvement 105 213 288 213 108 927 106 229 331 261 141 1 068Technical Assistance

Senior Fishery Expert /h person/month 0.5 0.5 0.5 - - 1.5 25.000 13 13 13 - - 38 13 13 13 - - 39Fishing Potential Assessment /i person/month 4 - - - - 4 7.000 28 - - - - 28 28 - - - - 28Biologist /j person/month - 1.5 - - - 1.5 7.000 - 11 - - - 11 - 11 - - - 11Elaboration of Fish Resource Management Plans person/month - 1 1 - - 2 7.000 - 7 7 - - 14 - 8 8 - - 16

Subtotal Technical Assistance 41 30 20 - - 90 41 32 21 - - 94Total Investment Costs 154 258 327 224 108 1 071 155 277 373 274 141 1 218Recurrent Costs

Fishery Specialist person/month 12 12 12 12 12 60 3.000 36 36 36 36 36 180 36 39 41 44 47 207IPA support

New Inland Fishery Extension Staff /k person/month 60 - 36 - - 96 420 25 - 15 - - 40 25 - 17 - - 43New Inland Fishery Extension Staff /l person/month - 60 60 108 108 336 420 - 25 25 45 45 141 - 27 29 56 59 171

Subtotal IPA support 25 25 40 45 45 181 25 27 46 56 59 214PCU transport Operation and Maintenance

Motorcycles /m motorcycle 5 5 8 8 8 34 140 1 1 1 1 1 5 1 1 1 1 1 5Fuel Motorcycle /n motorcycle/year 5 5 8 8 8 34 180 1 1 1 1 1 6 1 1 2 2 2 7

Subtotal PCU transport Operation and Maintenance 2 2 3 3 3 11 2 2 3 3 3 12Total Recurrent Costs 63 63 79 84 84 372 63 68 91 103 109 433Total 217 321 406 308 192 1 443 218 344 463 376 250 1 652


133

_________________________________\a 250cc motorbike for every new extensionist\b Includes spades, pickaces\c 1 kit per supported pond, including fingerling for fishpond & fish food for the first two weeks\d 1 day workshop per community by extension workers, incl per diem and local cost\e 3 day training on aquaculture production, processing and marketing, including Extensionist per diem, transport and local costs\f one person per community for a 6 week training at a provincial training center\g each trainer will train a minimum of 50 persons per year\h including fee, travel, per diem\i including fee, travel, per diem\j including fee, travel, per diem\k for Zoning, Design and Supervision. Including fee, per diem, transport\l 5 extra Extension workers (3 in Y1 and 2 in Y3) paid only the first year from IFAD loan\m 5 extra Extension workers\n Two cars at av. 26000km/year/car at 22 USD/100Km/car\o Insurance for private pick-up till 2500CC\p 10% of investment is 140 USD/motorcycle/year\q Hilux DoubleCab 4WD at 8.1 litres/100km at 0.4USD/liter\r 10.000km/yr/motorcycle at 3 litres/100km at 0.6USD/liter


134

Table 1.4: Improved Market-related Infrastructures


Investment CostsCivil works and Equipment

Study market infrastructures /a lump sum 1 - - - - 1 25.000 25 - - - - 25 28 - - - - 28Road improvement identification and requirement study /blump sum - 1 - - - 1 7.000 - 7 - - - 7 - 8 - - - 8Market, Processing Construction /c no. - 1 - - - 1 120.000 - 120 - - - 120 - 142 - - - 142Market Access Road spot improvement /d km. - 10 30 - - 40 12.000 - 120 360 - - 480 - 142 455 - - 598Fish handling/processing facility no. - 2 - 3 - 5 30.000 - 60 - 90 - 150 - 71 - 121 - 192Road Maintenance contribution /e km. - - 10 30 - 40 1.200 - - 12 36 - 48 - - 15 49 - 64

Subtotal Civil works and Equipment 25 307 372 126 - 830 28 364 471 170 - 1 032Technical Assistance

Civil engineer/supervisor /f person/month - 3 3 3 - 9 7.000 - 21 21 21 - 63 - 23 24 26 - 72Total 25 328 393 147 - 893 28 386 495 196 - 1 104

_________________________________\a Including design, asset ownership, management and maintenance of market infrastructure\b national recruitment\c Consits of minimum: concrete floor, roof, tables, water supply and fitting\d improving transport routes for a minimum of 30 project villages\e Road maintenance at 10% of investment, contributed once in year after road completion\f including fee, transport, per diem


135

Table 2.1: Institutional Capacity Building

Breakdown of Totals Incl. Cont.


Investment CostsTraining and capacity development for provincial and local institions

Training IPA staff /b Training 10 - 10 - - 20 1.500 15 - 15 - - 30 15 - 17 - - 32Refresh IPA extension staff of provinces /c participant - 10 - 10 - 20 900 - 9 - 9 - 18 - 10 - 11 - 21Training attendance /d per diem 10 10 10 10 - 40 150 2 2 2 2 - 6 2 2 2 2 - 7Aquaculture Technology Update /e workshop - 2 2 2 2 8 1.500 - 3 3 3 3 12 - 3 3 4 4 14Mapping study /f Lump sum 0.5 0.5 - - - 1 25.000 13 13 - - - 25 13 13 - - - 26Regional knowledge & experience exchange /g lumpsum - 1 - 1 - 2 5.000 - 5 - 5 - 10 - 5 - 6 - 12Production of training material set - 1 1 - - 2 10.000 - 10 10 - - 20 - 11 12 - - 22

Subtotal Training and capacity development for provincial and local institions 29 41 30 19 3 121 29 44 34 23 4 134Technical Assistance

Aquaculture Monitoring system lump sum - 0.5 0.5 - - 1 50.000 - 25 25 - - 50 - 24 24 - - 48Trainer HIV/AIDS amount 0.25 - - - - 0.25 7.000 2 - - - - 2 2 - - - - 2

Subtotal Technical Assistance 2 25 25 - - 52 2 24 24 - - 50Total Investment Costs 31 66 55 19 3 173 31 68 58 23 4 184Recurrent Costs

Aquaculture Specialist amount 12 12 12 12 12 60 3.000 36 36 36 36 36 180 36 39 41 44 47 207Total Recurrent Costs 36 36 36 36 36 180 36 39 41 44 47 207Total 67 102 91 55 39 353 67 107 100 67 51 391

_________________________________\a (national, provincial, local/extension)\b 5 day training session on aquaculture technology & management, outreach, climate change, gender, social issues, HIV/AIDS\c 3 day training session for all topics/ participant\d including travel\e 1 day workshop 2 times a year, including per diem and travel\f or support FAO mapping project\g includes(travel, per diem)


136

Table 2.2: Improved participation in the local development process


Investment CostsClimate Change Vulnerability Assessment /a Assessment - 10 - - - 10 2.000 - 20 - - - 20 - 22 - - - 22Aquaculture Community capacity development

Community Development Facilitation SP capacity building /b training 1 - 1 - - 2 6.000 6 - 6 - - 12 6 - 7 - - 13Community Development Facilitation Phase I /c community - 5 5 - - 10 10.000 - 50 50 - - 100 - 54 58 - - 111Community Development Facilitation Phase II&III /d community - - 5 5 - 10 7.000 - - 35 35 - 70 - - 40 43 - 83Community Reporting and planning /e workshop - - 5 5 10 20 2.000 - - 10 10 20 40 - - 12 12 26 50Saving Group Development /f group 5 - - - - 5 7.000 35 - - - - 35 35 - - - - 35Saving group mentoring /g group - 5 5 5 5 20 5.000 - 25 25 25 25 100 - 27 29 31 33 119

Total 41 95 126 70 45 377 41 102 145 86 59 433

_________________________________\a average 6 assesments per faciltator\b Training of Service Provider in a 5 day training for 6 persons\c Community Development Plan in a 20 day facilitation (covering Climate change, gender, nutrition, mine detection, HIV/AIDS) / community / year, including facilitator and travel\d a 10 day follow-up facilitation/ community, including facilitator and travel\e Inclusion in municipal goverment plans, including facilitator per diem and local costs\f Establishment of saving groups and training in Financial Management skills, 5 day training.\g supervision by specialized service providers, 4 visits / group / yr


137

Table 2.3: Increased quantity and quality of fish produced in fish ponds and sold on a sustainable basis

Quantities Unit Cost Base Cost (US$ '000) Totals Including Contingencies (US$ '000)Unit 2015 2016 2017 2018 2019 Total (US$) 2015 2016 2017 2018 2019 Total 2015 2016 2017 2018 2019


Construction of dams dam 2 5 10 5 - 22 10.000 20 50 100 50 - 220 22 59 127 67 -Vehicles

4 WD double cabin pick-up no. 1 - - - - 1 35.000 35 - - - - 35 35 - - - -Motorbikes /a no. 3 - 2 - - 5 1.400 4 - 3 - - 7 4 - 3 - -

Subtotal Vehicles 39 - 3 - - 42 40 - 3 - -Equipment for demonstration

Feed mill for fish feed lump sum 1 - - - - 1 75.000 75 - - - - 75 76 - - - -Pond/Dam construction kit /b no. 40 100 200 500 500 1 340 30 1 3 6 15 15 40 1 3 7 18 20Pond Stocking Kit /c no. 30 80 250 300 300 960 70 2 6 18 21 21 67 2 6 20 26 27

Subtotal Equipment for demonstration 78 9 24 36 36 182 79 9 27 44 47Aquaculture Development

Pond development Training /d community 2 5 3 - - 10 5.000 10 25 15 - - 50 10 27 17 - -Training of farmers in Aquaculture /e farmers 300 500 500 - - 1 300 150 45 75 75 - - 195 45 81 86 - -Functional Literacy Training (ToT) /f community 5 5 - - - 10 1.000 5 5 - - - 10 5 5 - - -Community Functional Literacy trainer incentive /g trainer - 5 10 10 10 35 500 - 3 5 5 5 18 - 3 6 6 7

Subtotal Aquaculture Development 60 108 95 5 5 273 60 116 109 6 7Technical Assistance

Senior Aquaculture Expert /h person/month 0.5 2 2 1 1 6.5 25.000 13 50 50 25 25 163 13 51 51 26 26Sr. Aquaculture Fish Feed specialist /i person/month - 0.5 - 0.5 - 1 25.000 - 13 - 13 - 25 - 13 - 13 -Sr Aquaculture Cage fish farming specialist /j person/month - - 0.5 - - 0.5 25.000 - - 13 - - 13 - - 13 - -Civil Engineer /k person/month 0.5 1 2 1 1 5.5 7.000 4 7 14 7 7 39 4 8 16 9 9

Subtotal Technical Assistance 16 70 77 45 32 239 16 72 80 47 35Total Investment Costs 214 236 298 136 73 955 217 256 346 165 88Recurrent Costs

Aquaculture Specialist person/month 12 12 12 12 12 60 3.000 36 36 36 36 36 180 36 39 41 44 47IPA support

New Aquaculture Extension Staff /l person/month 36 - 24 - - 60 420 15 - 10 - - 25 15 - 12 - -New Aquaculture Extension Staff /m person/month - 36 36 60 60 192 420 - 15 15 25 25 81 - 16 17 31 33

Subtotal IPA support 15 15 25 25 25 106 15 16 29 31 33Transport Operation and Maintenance

Vehicles 4WD pick-up /n 100 km 260 260 260 260 260 1 300 22 6 6 6 6 6 29 6 6 6 7 7Vehicle Insurance /o vehicle/yr 1 1 1 1 1 5 970 1 1 1 1 1 5 1 1 1 1 1Motorcycles /p motorcycle 3 3 5 5 5 21 140 0 0 1 1 1 3 0 0 1 1 1Fuel Vehicle /q 100/km 260 260 260 260 260 1 300 40 10 10 10 10 10 52 10 11 12 12 13Fuel Motorcycle /r motorcycle/year 3 3 5 5 5 21 180 1 1 1 1 1 4 1 1 1 1 1

Subtotal Transport Operation and Maintenance 18 18 19 19 19 92 18 19 21 22 23Total Recurrent Costs 69 69 80 80 80 378 70 74 91 97 103

Total 283 305 378 215 153 1 333 287 330 437 262 191


138

_________________________________\a 250cc motorbike for every new extensionist\b Includes spades, pickaces\c 1 kit per supported pond, including fingerling for fishpond & fish food for the first two weeks\d 1 day workshop per community by extension workers, incl per diem and local cost\e 3 day training on aquaculture production, processing and marketing, including Extensionist per diem, transport and local costs\f one person per community for a 6 week training at a provincial training center\g each trainer will train a minimum of 50 persons per year\h including fee, travel, per diem\i including fee, travel, per diem\j including fee, travel, per diem\k for Zoning, Design and Supervision. Including fee, per diem, transport\l 5 extra Extension workers (3 in Y1 and 2 in Y3) paid only the first year from IFAD loan\m 5 extra Extension workers\n Two cars at av. 26000km/year/car at 22 USD/100Km/car\o Insurance for private pick-up till 2500CC\p 10% of investment is 140 USD/motorcycle/year\q Hilux DoubleCab 4WD at 8.1 litres/100km at 0.4USD/liter\r 10.000km/yr/motorcycle at 3 litres/100km at 0.6USD/liter


139

Table 2.4: Hatchery effectively producing inputs for project

Breakdown of Totals Incl. Cont.

Quantities Base Cost (US$ '000) Totals Including Contingencies (US$ '000)Unit 2015 2016 2017 2018 2019 Total Unit Cost (US$) 2015 2016 2017 2018 2019 Total 2015 2016 2017 2018 2019 Total


Hatchery Drainage /a lump sum 1 - - - - 1 50.000 50 - - - - 50 55 - - - - 55Hatchery Rehabilitation /b lump sum - 0.5 0.5 - - 1 50.000 - 25 25 - - 50 - 30 32 - - 61Construction of 4 earth ponds pond - 2 2 - - 4 2.000 - 4 4 - - 8 - 5 5 - - 10Hatchery Road spot improvement km. - 3 - - - 3 12.000 - 36 - - - 36 - 43 - - - 43Road Maintenance contribution /c km. - - 3 - - 3 1.200 - - 4 - - 4 - - 5 - - 5Contribution to Fingerling production and ditribution /d 1000 fingerling 50 150 250 250 300 1 000 0,06/fingerling 3 9 15 15 18 60 3 10 17 18 23 72Hatchery Management & Operation and follow-up /e participant - 6 - 6 - 12 1.000 - 6 - 6 - 12 - 6 - 7 - 14Desktop computer /f no. - 2 - - - 2 3.000 - 6 - - - 6 - 6 - - - 6Office furniture /g no. - 2 - - - 2 2.000 - 4 - - - 4 - 4 - - - 4

Subtotal Civil works and Equipment 53 90 48 21 18 230 58 104 59 26 23 270Technical Assistance

Sr aquaculture specialist in fish reproduction and hatchery managementperson/month - 0.5 - - - 0.5 25.000 - 13 - - - 13 - 13 - - - 13Total 53 103 48 21 18 242 58 116 59 26 23 282

_________________________________\a rehabilitate and improve existing drainage\b Including equipping the laboratory, making the hatchery operational (e.g., equipping with pumps, funnels, etc.)\c Road maintenance at 10% of investment, contributed once in year after road completion\d 1000 Tilapia fingerlings at average 60 USD, including distribution\e 3 day training / participant, including per diem and travel\f desktop computer software + printer + voltage stabiliser + other computer assessories\g including chairs, desks and filling cabinets


140


Investment CostsTransport means

4 WD double cabin pick-up no. 2 - - - - 2 35.000 70 - - - - 70 71 - - - - 71Boats /b no. 2 - - - - 2 11.000 22 - - - - 22 22 - - - - 22

Subtotal Transport means 92 - - - - 92 93 - - - - 93Office Furniture and Equipment

Desktop computer /c no. 5 - - - - 5 3.000 15 - - - - 15 15 - - - - 15Laptop computer no. 2 - - - - 2 2.000 4 - - - - 4 4 - - - - 4Photocopier/printer no. 1 - - - - 1 3.000 3 - - - - 3 3 - - - - 3Office furniture /d no. 5 - - - - 5 2.000 10 - - - - 10 10 - - - - 10Mobile phones /e no. 4 - - - - 4 200 1 - - - - 1 1 - - - - 1

Subtotal Office Furniture and Equipment 33 - - - - 33 33 - - - - 33Start-up & communication

National start-up workshop workshop 1 - - - - 1 5.000 5 - - - - 5 5 - - - - 5Provincial start-up workshop workshop 4 - - - - 4 2.500 10 - - - - 10 10 - - - - 10Communication Strategy person/month 1 - - - - 1 7.000 7 - - - - 7 7 - - - - 7Information Dissemination lump sum 1 - - - - 1 2.000 2 - - - - 2 2 - - - - 2

Subtotal Start-up & communication 24 - - - - 24 24 - - - - 24Project Steering and Annual Review

National Steering Committee /f meeting 1 1 1 1 1 5 800 1 1 1 1 1 4 1 1 1 1 1 5National Technical Coordination Committee /g meeting 2 2 2 2 2 10 800 2 2 2 2 2 8 2 2 2 2 2 9Provincial Steering Committee /h meeting 4 4 4 4 4 20 400 2 2 2 2 2 8 2 2 2 2 2 9Provincial Technical Coordination /i meeting 8 8 8 8 8 40 400 3 3 3 3 3 16 3 3 4 4 4 18

Subtotal Project Steering and Annual Review 7 7 7 7 7 36 7 8 8 9 9 41Technical Assistance

Senior M&E Specialist /j person/month - 0.5 0.5 - - 1 25.000 - 13 13 - - 25 - 13 13 - - 26Senior Procurement Specialist /k person/month 0.5 0.5 - - - 1 25.000 13 13 - - - 25 13 13 - - - 26PCU training lump sum 1 1 1 1 1 5 10.000 10 10 10 10 10 50 10 11 12 12 13 58

Subtotal Technical Assistance 23 35 23 10 10 100 23 36 24 12 13 109Audit /l lump sum 1 1 1 1 1 5 25.000 25 25 25 25 25 125 25 27 28 29 31 140

Total Investment Costs 204 67 55 42 42 410 205 71 61 50 53 440Recurrent Costs

PCU SalariesProject Coordinator person/month 12 12 12 12 12 60 4.500 54 54 54 54 54 270 54 58 62 66 70 311Financial Controller person/month 12 12 12 12 12 60 4.000 48 48 48 48 48 240 48 52 55 59 63 277M&E Officer person/month 12 12 12 12 12 60 3.000 36 36 36 36 36 180 36 39 41 44 47 207Accountant person/month 12 12 12 12 12 60 2.000 24 24 24 24 24 120 24 26 28 29 31 138Admin Assistent person/month 12 12 12 12 12 60 800 10 10 10 10 10 48 10 10 11 12 13 55Driver/Boat Operator /m person/month 36 36 36 36 36 180 400 14 14 14 14 14 72 14 16 17 18 19 83

Subtotal PCU Salaries 186 186 186 186 186 930 187 200 214 228 242 1 071PCU transport Operation and Maintenance

Vehicles 4WD pick-up /n 100 km 520 520 520 520 520 2 600 22 11 11 11 11 11 57 12 12 13 13 14 64Vehicle Insurance /o vehicle/yr 2 2 2 2 2 10 970 2 2 2 2 2 10 2 2 2 2 2 11Boats /p lump sum 2 2 2 2 2 10 800 2 2 2 2 2 8 2 2 2 2 2 9Fuel Vehicle /q 100/km 520 520 520 520 520 2 600 40 21 21 21 21 21 104 21 22 23 24 26 116Fuel Boats /r boat/year 2 2 2 2 2 10 2.496 5 5 5 5 5 25 5 5 6 6 6 28

Subtotal PCU transport Operation and Maintenance 41 41 41 41 41 204 41 43 46 48 50 228PCU Office Operation & Maintenance

Office supplies lump sum 1 1 1 1 1 5 1.200 1 1 1 1 1 6 1 1 1 1 1 7PCU office /s lump sum 1 1 1 1 1 5 10.000 10 10 10 10 10 50 10 11 11 12 12 56

Subtotal PCU Office Operation & Maintenance 11 11 11 11 11 56 11 12 13 13 14 63Per diem

PCU per diem /t day 50 50 50 50 50 250 300 15 15 15 15 15 75 15 16 17 18 20 86IPA per diem /u day 80 80 80 80 80 400 150 12 12 12 12 12 60 12 13 14 15 16 69

Subtotal Per diem 27 27 27 27 27 135 27 29 31 33 35 156Total Recurrent Costs 265 265 265 265 265 1 325 266 284 303 322 342 1 518

Total 468 332 320 307 307 1 735 472 355 364 373 395 1 958

Project Coordination Unit


141

_________________________________\a located in one of the project provinces\b Fiber boat with 40HP Yamaha\c desktop computer + printer + voltage stabiliser + other computer assessories\d including chairs, desks and filling cabinets\e including chairs, desks and filling cabinets\f Including per diem for two PCU staff\g Including per diem for two PCU staff\h once per year in every province, including annual review and planning\i twice per year in every province\j For M&E Database set-up and training (includes Travel, Fee and per diem)\k includes Travel, Fee and per diem\l annual project audit\m 3 drivers and or boat operators\n Two cars at av. 26000km/year/car at 22 USD/100Km/car\o Insurance for private pick-up till 2500CC\p includes motor oil, small boat repair, spare parts\q Hilux DoubleCab 4WD at 8.1 litres/100km at 0.4USD/liter\r based on fuel use of 80liters p/week at 0.60USD/liter\s Includes maintenance, repairs, utilities(water,electricity) and watchmen\t 2 PCU staff x 25 days/yr\u 8 extension staff(2person/province)for 10 days maximum per year

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Appendix 10: Economic and Financial Analysis

Introduction

1. This Appendix presents the financial and economic analysis of AFAP, aiming at determining theviability of fishing sector investments including fishers’ and fish–farming techniques and practices andto assess the attractiveness of the project as a whole. The analysis follows recommendations forgood practices and is based on the experiences of a similar project in Mozambique.

Project benefits

2. The Project activities aiming at increasing quantity and quality of fish produced and sold wouldmainly consist of training of fishermen, processors and small traders in good practices. The projectwill not consider production increase through fleet expansion or bigger boats as the results of stockassessment (to be carried out by AFAP) are not available. The main project benefits accruing to theabove activities would include:

(i) increased fish production obtained with the introduction of fish farming andimproved fishing techniques and practices;

(ii) Post-harvest losses reduction and improved quality of fish through improvedfishing practices, processing and conservation;

(iii) increased marketed production;(iv) Improvement of hygienic standards deriving from the use of ice, as well as

improved fish salting and smoking techniques; and(v) better resource management and reduction of illegal fishing practices leading in

time to a sustainable increase in fish catch

Financial analysis

3. The objectives of the financial analysis are: (i) assessing the financial viability of the improvedtechnologies and systems promoted by the project and the impact of the project’s interventions on thecash flow and incomes for fishermen, processors, traders and fish farmers; and (ii) setting a basis forthe economic analysis.

4. With regard to point (i) a number of indicative financial models were prepared. In total, 7 initialillustrative models, 5 production models (3 fish farming and 2 fisheries) and 2 enterprise models (1traditional trader and 1 fresh fish trader) to demonstrate the financial viability of potential investmentsfrom both a food security improvement as well as poverty alleviation point of view.

Key assumptions

5. The models are based on information gathered during the design mission. In particular,information on input requirements for various operations, capital costs, prevailing wages, yields, farmgate and market prices of fresh and processed fish, and fish-landing site-to-market transport costswere collected. Conservative assumptions were made for inputs and outputs. Assumptions regardingthe financial viability of various illustrative models are as follows:

Real costs in local currency, Kwanza (Kz), have been applied where available; Prices for inputs and outputs are assumed to remain constant; Yields shown in the without-project situation are consistent with 2013 average yields; Adoption of improved fishing practices was assumed to lead to reduction of post-capture

loss and to some extent to increase in sales volumes; Adoption of improved processing and handling technologies was assumed to lead to

reduction of inputs, improved efficiency and increased sale of quality fresh fish; Fishers were assumed to intensify fish farming and fishing through adoption of better

quality inputs (fingerlings, fish feed) and better fishing gears (nets) thereby improving theiryields and the quality of their products. Most fish farmers will start with a family farm ponddimension (subsistence) to expand if and when successful to larger more commercialpond dimensions;

Labour. In dugout canoe fishery and enterprise models, it was assumed that familyincremental labour requirements are minimal. In the aquaculture Family Fish Farm model,it was assumed that family incremental labour requirements are valued as lost opportunity.

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For Chata Boat Fishery, emerging and semi-commercial fish farming it was assumed thatlabour is hired for fishing as well as for pond operation and maintenance. Labour is valuedequal to the 2012 National agricultural minimum wage;

The adoption rates of the proposed technologies are conservatively assumed to reach apeak of 80% for the fish farmers and 50% for fishers, traditional processor and fresh fishtrader;

The agricultural land used for fish pond construction was valued at its opportunity cost,and needs to be validated at appraisal;

Home consumption has been applied and assumed to be valued at the wholesale price. Arate of national per-capita fish consumption of 15.4kg/year (based on FAO Fishery CountryProfile, 2007) and 4.8 members per household were applied (also to be confirmed atappraisal);

No economic price is assigned to labour related to the unemployment rate. It is not likelythat a higher salary (minimum wage + unemployment rate) will attract labour to rural areaswhere the social infrastructure is currently absent.

6. Production Summary results and the comparison of income in the ‘without’ (WOP) and ‘withproject’ (WP) scenarios (full development) for the production and enterprise models are presented inTable 1 below. Incremental increases in gross margin are expected to range between Kz 2,656 andKz 59,000.

7. Detailed Production Summary. More information on production including estimated costs,annual net benefits and their financial results in Kz are presented in Table 2 and Table 3. The mainresults of the financial analysis are: (i) an increase in gross and net returns from each modelcompared with and without-project situation; (ii) improved benefit/cost ratios illustrating the value ofthe investments. The NPVs before financing range from Kz -13,919 to Kz 485,825..

.


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Table 1: Production SummaryTable 1: Fisheries and Fish Farming Production Budgets Summary /a

95

FamilyFarm

EmergingFarmer Pond

Semi-Commercial

Pond

Dugoutcanoe

Plank boat('Chata')

TraditionalProcessor

Fresh Fishtrader

Gross Output, KzWOP 0 9720 25200 503880 1326000 90525 783750

WP 9720 25200 101200 563160 1560000 109013 948750Incremental 9720 15480 76000 59280 234000 18488 165000

Total Inputs, KzWOP 0 12354 24073 50810 497160 56935 592350

WP 12354 22872 87927 61310 671280 57244 714530Incremental 12354 10518 63854 10500 174120 309 122180

Gross Margin, KzWOP 0 -2634 1127 453070 828840 33590 191400

WP -2634 2328 13273 501850 888720 51768 234220Incremental -2634 4962 12146 48780 59880 18178 42820

Gross Margin, US$WOP 0 -28 12 4769 8725 354 2015

WP -28 25 140 5283 9355 545 2465Incremental -28 52 128 513 630 191 451

Returns to Labour, Kz/pdWOP 0 -188 40 2178 7970 840 1276

/b WP 395 83 359 2413 8545 1294 1561Incremental Returns toIncremental Labour,Kz/pd 395 271 318 235 576 454 285\a WOP-without project, WP-with project at full production\b In family farm return to labour is before opportunity cost of land and labour

Item

Exchange Rate Kz:USDFisheriesAquaculture

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Table 2: Production Models - Estimated Costs and Annual Net Benefit (Kz)

Loans BeneficiaryContribution

Total WOPProject

WP -FullDevelop

Incremental

Production ModelsAquacultureFamily farming pond 2400 600 3000 0 -2634 -2634 -0.9 n/a n/a -37584 -19158Emerging farmer pond 6720 1680 8400 -2634 2328 4962 0.6 31% 34% 9512 8550(Semi-)Commercial fish farm 12000 3000 15000 1127 13273 12146 0.0 159% n/a 88743 65217FisheriesDugout canoe 7200 1800 9000 453070 501850 48780 5.4 n/a n/a 318338 270747Plank boat (Chata) 17600 4400 22000 828840 888720 59880 2.7 n/a n/a 485825 736645

Enterprise ModelsFresh Fish Trader 36480 9120 45600 191400 234220 42820 0.9 159% n/a 191803 144568Traditional Processor 17600 4400 22000 33590 51768 18178 0.8 104% 237% 79359 79820

Average 114286 28571 142857 1720449 1930885 210436 11 n/a n/a 1298282 147015980% 20% 100%

\a WOP-without project, WP-with project at full production

NPV-beforefinancing

Kz

NPV-afterfinancing

KzModel

Investment costs (Kz) Annual Net Benefits-after financing Incrementalannual net

benefits perKz1 of

investment(Kz)

IRR-beforefinancing (%)

IRR-afterfinancing

(%)


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Table 3: production models - Financial Results (Kz), Ratios, and Switching Values

IncrementalRevenues

IncrementalInflows

IncrementalProduction

Costs

IncrementalInvestment

Costs

IncrementalOutflows

Production ModelsAquaculture

Family farming pond 37,584- n/a 35% 33% 26% 702% 25%Emerging farmer pond 9,512 34% -10% -9% -11% -112% -10%(Semi-)Commercial fish farm 88,743 n/a -16% -15% 20% 478% 19%

FisheriesDugout canoe 318,338 n/a -80% -78% 1428% 3309% 1004%Plank boat (Chata) 485,825 n/a -57% -55% 91% 1362% 85%

Enterprise ModelsFresh Fish Trader 191,803 n/a -17% -16% 21% 349% 20%Traditional Processor 79,359 237% -21% -18% -98% -109% -52%

ModelNPV - afterfinancing

(Kz)

IRR - afterfinancing

(%)

Switching Values % *

*The switching values show percentage by which the costs would need to rise or benefits decrease before the NPV reached zero, associated with each of thevalues

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8. Summary Aquaculture Production Models. All models except one, the Family Pond model,presents positive results before financing with positive Net Present Values. However, when looking atthe cash flow analysis, some models like (the emerging and (semi)commercial fish farm andTraditional Processor, indicate a need for finance. Moreover, when there is no adequate creditavailable to finance the restocking at a minimum of once every 4 years, it will be unlikely for thefarmer to restock, with diminishing production as a result. A case could be made on subsidisingfingerlings and extension service from a food security point of view given the improved food stock andprotein intake. For the models to be sustainable, some form of credit should become available for thefarmers at start-up and at restocking.

9. The Family farm pond shows a positive return to labour only before opportunity cost of landand labour, ranging from Kz 395 to Kz 555, indicating positive financial returns. After land and labour,there is a negative Net Present Value at 10 percent interest, indicating that this model is not attractivefrom a financial point of view. The WP Family pond in full production is negative because the pondproduction will be fully consumed by the family household, which is well below the average annualhousehold consumption. The household consumption is valued at wholesale price and the productionvalue in this subsistence model is not enough to recover the assumed family incremental labourrequirements valued as lost opportunity cost at minimum agricultural wage. Therefore, the Projectpromotes a gradual transformation of these non-commercial fishponds into commercial activities. Witha national average of 15.4kg per capita fish consumption per year, the pond will be able to coverabout 40% of the household fish consumption. Other qualitative benefits are: (i) time savings for thewoman in buying fish; (ii) having a living food stock close to home; and (iii) potential to sell if and whenthe household decides not to consume.

10. The emerging aquaculture farmer has a typical pond size of 300m2 and just like the familyponds, the emerging farmers will integrate the fishpond into their existing agriculture and livestockactivities. The WoP is negative because for the emerging farmer, it is equal to the WP family pondsituation, which is also negative, as described above. The emerging farmers are presently sellingagriculture products and thus have the resources and access to better fish feed which makes biggerponds more attractive. Furthermore, it is likely that successful family fishponds will add an extra pondor enlarge the current ones. The Emerging farmer will top up the local feed with manufactured feed,resulting in higher productivity. However, the manufactured feed price of 80kz/kg is high and wouldlimit financial return.

11. The (semi) commercial fish farming is usually a stand-alone activity and the integration withother agriculture activities is limited. The favourable incremental net benefits of the commercial fishfarms, ranging from Kz 1,600 to Kz 29,000 indicate a likely adoption of the proposed interventions.Ideally, a commercial fish farm would use high quality specialised fish feed. However, this feed iscurrently imported from Brazil at a high cost of 160kz/kg. The commercial fish farmer is likely tochoose a combination of various feeds allowing around 60% of good quality feed in the mix. Thiscombination is likely to ensure positive financial returns. The availability of good quality fish feed islikely to improve with the rehabilitation of a feed mill by the Project. Production capacity and operationcosts are yet to be assessed. In the first two years, it is essential for the commercial fish farmer tohave access to credit to finance the initial investments.

12. Fisheries models. The Project activities aiming at increasing quantity and quality of fishproduced and sold would consist mainly of training of fishermen, processors and small traders in goodpractices. Equipment for demonstration, like iceboxes, smoking kilns and gas freezers, will beprovided by the Project. The Project will not encourage fleet expansion or increasing the size of theboats before the results of stock assessment are available. Unquantifiable benefits include betterresource management leading, over time, to increase of catch, reduction of illegal fishing practices,and improvement of hygienic standards. The favourable incremental gross benefits, ranging from Kz31,000 to Kz 63,000 for canoes and between Kz 50,000 and Kz 89,000 for plank boats suggest thatadoption of the proposed interventions is likely, given the relatively low investment requirements.

13. Summary Enterprise models. The Traditional Processor is almost always a woman and inmany cases the wife of a fisherman. She buys from her husband and other fishermen. She will sell asmall portion fresh to the fresh fish trader and will process the majority to dry and smoked fish. TheProject will introduce and demonstrate better ways of processing and conservation, contributing to adecrease in loss of 15% and a reduction of firewood consumption of 25%. Unquantifiable benefitsinclude: (i) the improvement of hygienic standards with the use of ice and salt; and (ii) reduction of


149

health hazard with improved smoking kilns. Introducing better and more efficient fish preservation anddrying and smoking processing techniques will have a positive impact on the income of the traditionalprocessors reaching a gross margin increment of Kz 18,000 in full production.

14. The Fresh Fish Trader, collects the fish from the landing sites or agrees with a fisher orprocessor to transport on his behalf and cost. The trader sells the fish at wholesale at intermediarymarkets or at the retail stall. The practice in Angola is that the trader will use transporters instead ofhaving a bicycle or motorbike. The majority, if not all, of fish traders are women. The Project willintroduce better conservation in this part of the fish value chain to reduce the loss, currently estimatedat 5% and to increase the geographical sales volume. The fresh fish trader model has incrementalgross margin of Kz 42,000.This favourable increment is achieved with a small investment (ice boxesand ice).

15. Summary. The main result of the financial analysis is: (i) an increase in gross and net returnsfrom each model, except the family farm/subsistence model, compared with and without-projectsituation; and (ii) improved benefit/cost ratios demonstrating the attractiveness of the investments.The NPV at 10 percent interest before financing ranges from Kz -13,000 to Kz 485,000. Internal Rateof Returns (IRR) after financing (if available) ranging from 31% to 159%. Moreover, it is important tohighlight that most models present a negative cash flow between the investment and the realisation ofthe full yield even though at the same time, the fishers would be adding to their net worth (ponds,bigger ponds and improved fishing and processing and practices). Therefore, it would be important tocreate awareness of the shortfall and ensure sound financial management of fishers’ revenues.Furthermore, linking with existing micro credit organisations active in the Project area will benecessary to cushion the negative cash flows at start-up and at restocking and or replacement.

Economic Analysis

NPV =US$773,000; ERR = 12.3 %

16. Beneficiaries. In assessing the number of direct project beneficiaries, it is estimated that therewould be some 12,000 households participating in the Project. These households will be involved ininland fishery, aquaculture and community capacity development activities. The adoption rates areestimated to range from 50% to 80% depending on proposed activities. At the fish production level,beneficiaries are almost exclusively male fishers ranging from asset owners (canoes, nets, chatas), tofishermen crew as day labourer. On the other hand, processing and marketing involves almostexclusively women.

17. The period of analysis is 20 years to account for the phasing and gestation period of theproposed interventions.

18. Price estimates. In the absence of reliable statistical data, the tradable fish product priceshave been based on the mission findings resulting from visits to various retail and wholesale markets.All local costs were converted into economic values using a Standard Conversion Factor (SCF) of0.90. In the case of imported goods, specific conversion rates reflecting the various taxes involvedwas estimated based on data from the Angola National Customs Office using the TaxSimulator18. Allvalues are given in constant 2013 prices.

19. Incremental Benefit Stream. The analysis identifies quantifiable economic benefits that relatedirectly to the activities undertaken following the implementation of the project’s components. Theincremental quantifiable benefit stream includes three elements: (i) incremental fish productionthrough introduction and expansion of aquaculture; (ii) incremental fish production directly attributableto the introduction of improved fishing practices; and (iii) the incremental benefits from enterpriseactivities. The total incremental fish production is estimated at 6,424 tonnes.

20. Cost Stream -The economic costs of AFAP were derived from COSTAB and include all costsidentified under the project.

21. Economic Rate of return using a 10% discount rate is 10.5%. The summary of the economicanalysis is presented in annex 5 below.

18 The Angola Official Customs website: www.alfandegas.gv.ao//TaxSimulator/


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22. A Sensitivity analysis was undertaken to assess the impact on economic returns againstchanges, in output (fish price) and key input prices (ice and feed prices). The analysis shows that theProject’s main economic profitability indicators are more sensitive to changes in the benefits than tochanges in the costs. The production models are more or less equally sensitive to a risk of +10% inproduction cost as to a -10% benefit decrease, resulting in a negative NPV. With a two year delay, theERR is still positive at 7.2%, the NPV will slip into a substantial negative of 1,125. The results from thesensitivity tests carried out, is presented in Table 5 below.

23.

Table 5: Sensitivity AnalysisYear ERR NPV /aNet cash flowbase scenario 15.2% 2,164 Costs+10% 13.1% 1,357 Costs+20% 11.2% 550 Costs+50% 6.5% -1,871Benefits +10% 17.4% 3,187Benefits +20% 19.4% 4,211Benefits -10% 12.8% 1,141Benefits -20% 10.3% 117Benefits -50% 0.6% -2,953I year lag in benefit 12.1% 9852 years lagin benefit 9.8% -86a/ Net Present Value (NPV), @10%.


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Annexes to Appendix 10

Economic and Financial Analysis

Contents

Annex 1: Financial & Economic Prices

Annex 2: Summary Production Budgets

Annex 3: Financial Models (Aquaculture and Fishery)

Annex 4: Economic Models (Aquaculture and Fishery)

Annex 5: Economic Analysis.


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Annex 1: Financial & Economic Prices

Table 1: Financial & Economic Prices1 USD:Kz 95

FinancialPrices

EconomicPrices \a

Description Unit Kz KzInvestment Capital CostsFishing gears: 0

gill net Canoe set 3000 2700gill net Chata set 8500 7650

Icebox 150 lt. unit 11400 8550Smoking kiln clay unit 3 000 2700Drying platform unit 1 000 900Pond Construction equipment unit 2 850 2565Harvest equipment unit 3 000 2700Pond stocking kit unit 4 560 4104OutputInland Fish at fishing centreTilapia at landing kg 150 135w holesale

Fresh kg 300 270smoked kg 1150 1035dry kg 600 540

Farm Fish > 220gr/f ish kg 400 360Inland Fish at marketFresh kg 550 495Dried Fish kg 1200 1080Smoked f ish kg 1950 1755Imported fishWholesale kg 450 351Retail kg 700 546InputsFingerlings unit 15 15Fish feed

Local(beerw aste) kg 3 3ChickenFeed kg 80 72Imported kg 160 140

Ice (bag of 50kg) kg 28 25Salt(bag of 20kg) kg 70 63Firew ood kg 50 45Other CostsTransportation

Fresh bag/50kg 10 9Dry f ish bag/150kg 10 9Person person 2000 1800

Tax % 10-20% 10-20%Agriculture labour/b per day 540 486

\b: labourcost: 540Kz/day based on 2012 agriculture Min. Wage

\a Removed the consumption tax (10%) portion from most unit costs andimport duties and custom levy w here applicable


153

Annex 2: Summary Production Budgets

Table 1: Fisheries and Fish Farming Production Budgets Summary /a1

95

FamilyFarm

EmergingFarmer Pond

Semi-Commercial

Pond

Dugoutcanoe

Plank boat('Chata')

TraditionalProcessor

Fresh Fishtrader

Gross Output, KzWOP 0 9720 25200 503880 1326000 90525 783750

WP 9720 25200 101200 563160 1560000 109013 948750Incremental 9720 15480 76000 59280 234000 18488 165000

Total Inputs, KzWOP 0 12354 24073 50810 497160 56935 592350

WP 12354 22872 87927 61310 671280 57244 714530Incremental 12354 10518 63854 10500 174120 309 122180

Gross Margin, KzWOP 0 -2634 1127 453070 828840 33590 191400

WP -2634 2328 13273 501850 888720 51768 234220Incremental -2634 4962 12146 48780 59880 18178 42820

Gross Margin, US$WOP 0 -28 12 4769 8725 354 2015

WP -28 25 140 5283 9355 545 2465Incremental -28 52 128 513 630 191 451

Returns to Labour, Kz/pdWOP 0 -188 40 2178 7970 840 1276

/b WP 395 83 359 2413 8545 1294 1561Incremental Returns toIncremental Labour,Kz/pd 395 271 318 235 576 454 285\a WOP-without project, WP-with project at full production\b In family farm return to labour is before opportunity cost of land and labour

Item

Exchange Rate Kz:USDFisheriesAquaculture


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Annex 3: Financial Models (Aquaculture and Fishery)

Table 1: Financial Production Model -Family Farmer pond of 150m2

Investments Kz 3 000Repayment Period years 2

Grace Period years 0.5Interest Rate % 20.0

Beneficiary Contribution % 20Loan Kz 2 400

WithoutProject Y1 Y2 Y3 Y4 Y5-10 Y6 Y7 Y8 Y9 Y10

Principal Repayments 2400 800 1 600Interest Repayments 720 240 480 -

Total Loan Repayments 3120 1 040 2 080 0Loan Outstanding 1 600 0 0

Cash Flow AnalysisWithoutProject Y1 Y2 Y3 Y4 Y5-10 Y6 Y7 Y8 Y9 Y10

InflowProduction Revenues 0 5832 7776 9720 9720 9720 9720 9720 9720 9720 9720Long-term Loan 0 2 400Beneficiary's Contribution 0 600Total Inflow 0 8 832 7 776 9 720 9 720 9 720 9 720 9 720 9 720 9 720 9 720OutflowProduction Costs 0 20858 9715 10104 10104 12354 10104 10104 10104 10104 12354Repayment of Loans

Long-term Loan 0 800 1600 0 0 0 0 0 0 0 0Repayment of Interest on Loans

Long-term Loan 0 240 480 0 0 0 0 0 0 0 0Total Outflow 0 21898 11795 10104 10104 12354 10104 10104 10104 10104 12354Net Income after Financing 0 -13066 -4019 -384 -384 -2634 -384 -384 -384 -384 -2634Taxes 0 % 0 0 0 0 0 0 0 0 0 0 0Net Income after Tax 0 -13 066 -4 019 -384 -384 -2634 -384 -384 -384 -384 -2634

Incremental Production Revenues 5 832 7 776 9 720 9 720 9 720 9 720 9 720 9 720 9 720 9 720NPV @10% Kz) 54 584

Incremental Total Inflow 8 832 7 776 9 720 9 720 9 720 9 720 9 720 9 720 9 720 9 720NPV @10% Kz) 57 311

Incremental Production Costs 20 858 9 715 10 104 10 104 12 354 10 104 10 104 10 104 10 104 12 354NPV @10% Kz) 73 805

Incremental Investments 3 000NPV @10% Kz) 2 727

Incremental Outflow 21 898 11 795 10 104 10 104 12 354 10 104 10 104 10 104 10 104 12 354NPV @10% Kz) 76 469

Incremental Net Income -13 066 -4 019 -384 -384 -2 634 -384 -384 -384 -384 -2 634NPV @10% Kz) -19 158

FIRR #NUM!Switching Values Appraisal Switching %

Value Value ChangeIncremental Revenues 54 584 73 742 35.1%Incremental Inflows 57 311 76 469 33.4%Incremental Production Costs 73 805 92 962 26.0%Incremental Investments 2 727 21 885 702.5%Total Incremental Outflows 76 469 95 627 25.1%

Items

With Project

With Project


155

Table 2: Financial Production Model -Emerging Farmer pond of 300m2





Principal Repayments 6720 2 240 4 480Interest Repayments 2016 672 1 344 -



InflowProduction Revenues 9720 17640 20160 25200 25200 25200 25200 25200 25200 25200 25200Long-term Loan 0 6 720Beneficiary's Contribution 0 1 680Total Inflow 9 720 26 040 20 160 25 200 25 200 25 200 25 200 25 200 25 200 25 200 25 200OutflowProduction Costs 12354 29306 21562 22872 27372 22872 22872 22872 27372 22872 22872Repayment of Loans


Long-term Loan 0 672 1344 0 0 0 0 0 0 0 0Total Outflow 12354 32218 27386 22872 27372 22872 22872 22872 27372 22872 22872Net Income after Financing -2634 -6178 -7226 2328 -2172 2328 2328 2328 -2172 2328 2328Taxes 15 % 0 0 0 349 0 349 349 349 0 349 349Net Income after Tax -2634 -6 178 -7 226 1 979 -2172 1979 1979 1979 -2172 1979 1979






Incremental Net Income -3 544 -4 592 4 613 462 4 613 4 613 4 613 462 4 613 4 613NPV @10% Kz) 8 550

FIRR 33.6%Switching Values Appraisal Switching %

Value Value ChangeIncremental Revenues 84 080 75 530 -10.2%Incremental Inflows 91 716 83 167 -9.3%Incremental Production Costs 74 568 66 018 -11.5%Incremental Investments 7 636 -913 -112.0%Total Incremental Outflows 82 028 73 479 -10.4%

With Project

With ProjectItems


156

Table 3: Financial Production Model - (semi) commercial pond 500m2





Principal Repayments 12000 4 000 8 000Interest Repayments 3600 1 200 2 400 -





Long-term Loan 0 1200 2400 0 0 0 0 0 0 0 0Total Outflow 24073 71398 88588 70677 87927 70677 87927 70677 87927 70677 87927Net Income after Financing 1127 4322 -7628 30523 13273 30523 13273 30523 13273 30523 13273Taxes (profit Tax) 25 % 282 1 080 0 7 631 3 318 7 631 3 318 7 631 3 318 7 631 3 318Net Income after Tax 845 3 241 -7 628 22 892 9954 22892 9954 22892 9954 22892 9954






Incremental Net Income 2 396 -8 473 22 047 9 109 22 047 9 109 22 047 9 109 22 047 9 109NPV @10% Kz) 65 217


Value Value ChangeIncremental Revenues 413 460 348 243 -15.8%Incremental Inflows 427 096 361 879 -15.3%Incremental Production Costs 324 716 259 499 20.1%Incremental Investments 13 636 -51 581 478.3%Total Incremental Outflows 338 039 272 822 19.3%

With Project

With ProjectItems


157

Table 4: Financial Production Model : Dugout canoe; gillnetting, with improved fishing practice

WithoutProject Y1 Y2 Y3 Y4 Y5-10 6 7 8 9 10

InflowProduction Revenues 503880 533520 563160 563160 563160 563160 563160 563160 563160 563160 563160Long-term Loan 0 7200 0 0Beneficiary's Contribution 0 1800Total Inflow 503880 542520 563160 563160 563160 563160 563160 563160 563160 563160 563160OutflowProduction Costs 50810.4 49310.4 61310.4 46310.4 61310.4 46310.4 61310.4 46310.4 61310.4 46310.4 61310.4Repayment of Loans


Long-term Loan 0 720 1440 0 0 0 0 0 0 0 0Total Outflow 50810 52430 67550 46310 61310 46310 61310 46310 61310 46310 61310Net Income after Financing 453070 490090 495610 516850 501850 516850 501850 516850 501850 516850 501850Taxes 15 % 67960 73513 74341 77527 75277 77527 75277 77527 75277 77527 75277Net Income after Tax 385109 416576 421268 439322 426572 439322 426572 439322 426572 439322 426572Incremental Production Revenues 29640 59280 59280 59280 59280 59280 59280 59280 59280 59280

NPV @10% (Kz) 337304Incremental Total Inflow 38640 59280 59280 59280 59280 59280 59280 59280 59280 59280

NPV @10% (Kz) 345486Incremental Production Costs -1500 10500 -4500 10500 -4500 10500 -4500 10500 -4500 10500

NPV @10% (Kz) 18966Incremental Investments 9000

NPV @10% (Kz) 8182Incremental Outflow 1620 16740 -4500 10500 -4500 10500 -4500 10500 -4500 10500

NPV @10% (Kz) 26960Incremental Net Income 31467 36159 54213 41463 54213 41463 54213 41463 54213 41463

NPV @10% (Kz) 270747FIRR #NUM!

Switching Values Appraisal Switching %Value Value Change

Incremental Revenues 337304 66557 -80.3%Incremental Inflows 345486 74739 -78.4%Incremental Production Costs 18966 289714 1427.5%Incremental Investments 8182 278929 3309.1%Total Incremental Outflows 26960 297707 1004.3%

With ProjectItems


158

Table 5: Financial Production Model : Dugout canoe; gillnetting, with improved fishing practice


InflowProduction Revenues 1326000 1404000 1560000 1560000 1560000 1560000 1560000 1560000 1560000 1560000 1560000Long-term Loan 0 47600 0 0Beneficiary's Contribution 0 11900Total Inflow 1326000 1463500 1560000 1560000 1560000 1560000 1560000 1560000 1560000 1560000 1560000OutflowProduction Costs 497160 525160 641280 641280 641280 671280 641280 641280 641280 641280 671280Repayment of Loans



NPV @10% (Kz) 1296011Incremental Total Inf low 137500 234000 234000 234000 234000 234000 234000 234000 234000 234000

NPV @10% (Kz) 1350101Incremental Production Costs 28000 144120 144120 144120 174120 144120 144120 144120 144120 174120


NPV @10% (Kz) 54091Incremental Outf low 48627 185373 144120 144120 174120 144120 144120 144120 144120 174120





/a Normal quality gillnet (=Kz 1,500)/b Gear to be replaced tw ice per year.

Items With Project


159

Table 6: Financial Processing model: Traditional Processor, with improved processing practice and techniques

Items WithoutProject Y1 Y2 Y3 Y4 Y5-10 6 7 8 9 10

InflowProduction Revenues 90525 95850 109012.5 109012.5 109012.5 109012.5 109012.5 109012.5 109012.5 109012.5 109012.5Long-term Loan 0 17600 0 0Short-term Loan 0 0 0 0 0 0 0 0 0 0 0Beneficiary's Contribution 0 4400Total Inflow 90525 117850 109013 109013 109013 109012.5 109012.5 109012.5 109012.5 109012.5 109012.5OutflowProduction Costs 56934.75 79835.13 57044.53 57244.03 57244.03 57244.03 57244.031 57244.031 57244.031 57244.031 57244.031Repayment of Loans

Long-term Loan 0 5867 11733 0 0 0 0 0 0 0 0Short-term Loan 0 0 0 0 0 0 0 0 0 0 0

Repayment of Interest on LoansLong-term Loan 0 1760 3520 0 0 0 0 0 0 0 0Short-term Loan 0 0 0 0 0 0 0 0 0 0 0

Total Outflow 56935 87462 72298 57244 57244 57244 57244 57244 57244 57244 57244Net Income after Financing 33590 30388 36715 51768 51768 51768 51768 51768 51768 51768 51768Taxes 0 % 0 0 0 0 0 0 0 0 0 0 0Net Income after Tax 33590 30388 36715 51768 51768 51768 51768 51768 51768 51768 51768Incremental Production Revenues 5325 18488 18488 18488 18488 18488 18488 18488 18488 18488




NPV @10% (Kz) 20000Incremental Outflow 30527 15363 309 309 309 309 309 309 309 309

NPV @10% (Kz) 41812Incremental Net Income -3202 3124 18178 18178 18178 18178 18178 18178 18178 18178

NPV @10% (Kz) 79820FIRR 237%


Incremental Revenues 101632 21812 -21.5%Incremental Inflows 121632 41812 -17.9%Incremental Production Costs 22273 102092 -97.9%Incremental Investments 20000 99820 -109.1%Total Incremental Outflows 41812 121632 -52.2%

With Project


160


Items WithoutProject Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8-10 Y9 Y10

InflowProduction Revenues 783750 825000 907500 948750 948750 948750 948750 948750 948750 948750 948750Long-term Loan 0 36480Beneficiary's Contribution 0 9120Total Inflow 783750 870600 907500 948750 948750 948750 948750 948750 948750 948750 948750OutflowProduction Costs 592350 654000 690020 714530 714530 714530 714530 714530 714530 714530 714530Repayment of Loans

Long-term Loan 12160 24320 0Short-term Loan 0 0 0

Repayment of Interest on LoansLong-term Loan 3648 7296 0

Short-term Loan 0 0 0Total Outf low 592350 669808 721636 714530 714530 714530 714530 714530 714530 714530 714530Net Income after Financing 191400 200792 185864 234220 234220 234220 234220 234220 234220 234220 234220Taxes (Profit tax) 25 % 47850 50198 46466 58555 58555 58555 58555 58555 58555 58555 58555Net Income after Tax 143550 150594 139398 175665 175665 175665 175665 175665 175665 175665 175665

Incremental Production Revenues 41250 123750 165000 165000 165000 165000 165000 165000 165000 165000NPV @10% (Kz) 867 263

Incremental Total Inf low 86850 123750 165000 165000 165000 165000 165000 165000 165000 165000NPV @10% (Kz) 908 717

Incremental Production Costs 61650 97670 122180 122180 122180 122180 122180 122180 122180 122180NPV @10% (Kz) 675 460

Incremental Investments 45600NPV @10% (Kz) 41 455

Incremental Outf low 77458 129286 122180 122180 122180 122180 122180 122180 122180 122180NPV @10% (Kz) 715 960

Incremental Net Income 7044 -4152 32115 32115 32115 32115 32115 32115 32115 32115NPV @10% (Kz) 144 568

FIRR #NUM!Sw itching Values Appraisal Sw itching %

Value Value ChangeIncremental Revenues 867 263 722 694 -16.67%Incremental Inflow s 908 717 764 149 -15.91%Incremental Production Costs 675 460 530 892 21.40%Incremental Investments 41 455 -103 114 348.74%Total Incremental Outf low s 715 960 571 391 20.19%

With Project


161


Loans BeneficiaryContribution

Total WOPProject

WP -FullDevelop

Incremental

Production ModelsAquacultureFamily farming pond 2400 600 3000 0 -2634 -2634 -0.9 n/a n/a -37584 -19158Emerging farmer pond 6720 1680 8400 -2634 2328 4962 0.6 31% 34% 9512 8550(Semi-)Commercial fish farm 12000 3000 15000 1127 13273 12146 0.0 159% n/a 88743 65217FisheriesDugout canoe 7200 1800 9000 453070 501850 48780 5.4 n/a n/a 318338 270747Plank boat (Chata) 17600 4400 22000 828840 888720 59880 2.7 n/a n/a 485825 736645

Enterprise ModelsFresh Fish Trader 36480 9120 45600 191400 234220 42820 0.9 159% n/a 191803 144568Traditional Processor 17600 4400 22000 33590 51768 18178 0.8 104% 237% 79359 79820

Average 114286 28571 142857 1720449 1930885 210436 11 n/a n/a 1298282 147015980% 20% 100%

\a WOP-without project, WP-with project at full production

NPV-beforefinancing

Kz

NPV-afterfinancing

KzModel

Investment costs (Kz) Annual Net Benefits-after financing Incrementalannual net

benefits perKz1 of

investment(Kz)

IRR-beforefinancing (%) 1


162

Annex 4: Economic Models (Aquaculture and Fishery)

Table 1: Economic Production Model -Family Farmer pond of 150m2WithoutProject Y1 Y2 Y3 Y4 Y5-10 Y6 Y7 Y8 Y9 Y10

InflowProduction Revenues 0 5249 6998 8748 8748 8748 8748 8748 8748 8748 8748Long-term Loan 0 2 160Beneficiary's Contribution 0 540Total Inflow 0 7 949 6 998 8 748 8 748 8 748 8 748 8 748 8 748 8 748 8 748OutflowProduction Costs 0 19103 8804 9154 9154 11404 9154 9154 9154 9154 11404Repayment of Loans


Long-term Loan 0 216 432 0 0 0 0 0 0 0 0Total Outflow 0 20039 10676 9154 9154 11404 9154 9154 9154 9154 11404Net Income after Financing 0 -12090 -3677 -406 -406 -2656 -406 -406 -406 -406 -2656Taxes 0 % 0 0 0 0 0 0 0 0 0 0 0Net Income after Tax 0 -12 090 -3 677 -406 -406 -2656 -406 -406 -406 -406 -2656






Incremental Net Income -12 090 -3 677 -406 -406 -2 656 -406 -406 -406 -406 -2 656NPV @10% Kz) -18 083


Value Value ChangeIncremental Revenues 49 126 67 208 36.8%Incremental Inflows 51 580 69 663 35.1%Incremental Production Costs 67 265 85 347 26.9%Incremental Investments 2 455 20 537 736.7%Total Incremental Outflows 69 663 87 745 26.0%

Items With Project


163

Table 2: Economic Production Model -Emerging Farmer pond of 300m2


164




Long-term Loan 0 648 1296 0 0 0 0 0 0 0 0Total Outflow 11404 29844 25141 20705 25205 20705 20705 20705 25205 20705 20705Net Income after Financing -2656 -5868 -6997 1975 -2525 1975 1975 1975 -2525 1975 1975Taxes 15 % 0 0 0 296 0 296 296 296 0 296 296Net Income after Tax -2656 -5 868 -6 997 1 679 -2525 1679 1679 1679 -2525 1679 1679






Incremental Net Income -3 212 -4 342 4 335 131 4 335 4 335 4 335 131 4 335 4 335NPV @10% Kz) 7 770

FIRR 33.2%Switching Values Appraisal Switching %

Value Value ChangeIncremental Revenues 75 672 67 902 -10.3%Incremental Inflows 83 036 75 265 -9.4%Incremental Production Costs 67 105 59 335 -11.6%Incremental Investments 7 364 -407 -105.5%Total Incremental Outflows 74 299 66 529 -10.5%

With ProjectItems

Table 3: Economic Production Model - (semi) commercial pond 500m2


165




Long-term Loan 0 1152 2304 0 0 0 0 0 0 0 0Total Outflow 21906 65088 81501 62838 80088 62838 80088 62838 80088 62838 80088Net Income after Financing 774 10032 -541 38362 21112 38362 21112 38362 21112 38362 21112Taxes (profit Tax) 25 % 194 2 508 0 9 590 5 278 9 590 5 278 9 590 5 278 9 590 5 278Net Income after Tax 581 7 524 -541 28 771 15834 28771 15834 28771 15834 28771 15834






Incremental Net Income 6 944 -1 122 28 191 15 253 28 191 15 253 28 191 15 253 28 191 15 253NPV @10% Kz) 102 516


Value Value ChangeIncremental Revenues 428 944 326 428 -23.9%Incremental Inflows 442 035 339 519 -23.2%Incremental Production Costs 292 408 189 892 35.1%Incremental Investments 13 091 -89 425 783.1%Total Incremental Outflows 305 198 202 681 33.6%

With ProjectItems


166

Table 4: Economic Production Model : Dugout canoe; gillnetting, with improved fishing practiceWithoutProject Y1 Y2 Y3 Y4 Y5-10 6 7 8 9 10












With ProjectItems


167

Table 5: Economic Production Model : Dugout canoe; gillnetting, with improved fishing practice













With ProjectItems


168

Table 6: Economic Processing model: Traditional Processor, with improved processing practice and techniquesWithoutProject Y1 Y2 Y3 Y4 Y5-10 6 7 8 9 10

InflowProduction Revenues 1326000 1404000 1560000 1560000 1560000 1560000 1560000 1560000 1560000 1560000 1560000Long-term Loan 0 42840 0 0Beneficiary's Contribution 0 10710Total Inflow 1326000 1457550 1560000 1560000 1560000 1560000 1560000 1560000 1560000 1560000 1560000OutflowProduction Costs 460314 485514 592102 592102 592102 619102 592102 592102 592102 592102 619102Repayment of Loans



NPV @10% (Kz) 1296011Incremental Total Inf low 131550 234000 234000 234000 234000 234000 234000 234000 234000 234000



NPV @10% (Kz) 48682Incremental Outf low 43764 168916 131788 131788 158788 131788 131788 131788 131788 158788





Items With Project


169

Table 7: Economic Processing model: Traditional Processor, with improved processing practice and techniquesItems Without

Project Y1 Y2 Y3 Y4 Y5-10 6 7 8 9 10InflowProduction Revenues 81472.5 86265 98111.25 98111.25 98111.25 98111.25 98111.25 98111.25 98111.25 98111.25 98111.25Long-term Loan 0 16640 0 0Short-term Loan 0 0 0 0 0 0 0 0 0 0 0Beneficiary's Contribution 0 4160Total Inflow 81472.5 107065 98111 98111 98111 98111.25 98111.25 98111.25 98111.25 98111.25 98111.25OutflowProduction Costs 51241.28 72851.61 51340.08 51519.63 51519.63 51519.63 51519.628 51519.628 51519.628 51519.628 51519.628Repayment of Loans

Long-term Loan 0 5547 11093 0 0 0 0 0 0 0 0Short-term Loan 0 0 0 0 0 0 0 0 0 0 0

Repayment of Interest on LoansLong-term Loan 0 1664 3328 0 0 0 0 0 0 0 0Short-term Loan 0 0 0 0 0 0 0 0 0 0 0

Total Outflow 51241 80062 65761 51520 51520 51520 51520 51520 51520 51520 51520Net Income after Financing 30231 27003 32350 46592 46592 46592 46592 46592 46592 46592 46592Taxes 0 % 0 0 0 0 0 0 0 0 0 0 0Net Income after Tax 30231 27003 32350 46592 46592 46592 46592 46592 46592 46592 46592Incremental Production Revenues 4793 16639 16639 16639 16639 16639 16639 16639 16639 16639




NPV @10% (Kz) 18909Incremental Outflow 28821 14520 278 278 278 278 278 278 278 278

NPV @10% (Kz) 39428Incremental Net Income -3229 2119 16360 16360 16360 16360 16360 16360 16360 16360

NPV @10% (Kz) 70949FIRR 209%


Incremental Revenues 91469 20519 -22.4%Incremental Inflows 110378 39428 -18.6%Incremental Production Costs 20955 91904 -97.9%Incremental Investments 18909 89858 -108.5%Total Incremental Outflows 39428 110378 -52.0%

With Project


170

Table 8: Economic Processing model: Traditional Processor, with improved processing practice and techniques

Items WithoutProject Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8-10 Y9 Y10

InflowProduction Revenues 705375 742500 816750 853875 853875 853875 853875 853875 853875 853875 853875Long-term Loan 0 27360Beneficiary's Contribution 0 6840Total Inflow 705375 776700 816750 853875 853875 853875 853875 853875 853875 853875 853875OutflowProduction Costs 534540 583260 622668 644802 644802 644802 644802 644802 644802 644802 644802Repayment of Loans

Long-term Loan 9120 18240 0Short-term Loan 0 0 0

Repayment of Interest on LoansLong-term Loan 2736 5472 0

Short-term Loan 0 0 0Total Outf low 534540 595116 646380 644802 644802 644802 644802 644802 644802 644802 644802Net Income after Financing 170835 181584 170370 209073 209073 209073 209073 209073 209073 209073 209073Taxes (Profit tax) 25 % 42709 45396 42593 52268 52268 52268 52268 52268 52268 52268 52268Net Income after Tax 128126 136188 127778 156805 156805 156805 156805 156805 156805 156805 156805

Incremental Production Revenues 37125 111375 148500 148500 148500 148500 148500 148500 148500 148500NPV @10% (Kz) 780 536

Incremental Total Inf low 71325 111375 148500 148500 148500 148500 148500 148500 148500 148500NPV @10% (Kz) 811 627

Incremental Production Costs 48720 88128 110262 110262 110262 110262 110262 110262 110262 110262NPV @10% (Kz) 603 272

Incremental Investments 34200NPV @10% (Kz) 31 091

Incremental Outf low 60576 111840 110262 110262 110262 110262 110262 110262 110262 110262NPV @10% (Kz) 633 647

Incremental Net Income 8062 -349 28678 28678 28678 28678 28678 28678 28678 28678NPV @10% (Kz) 133 485

FIRR #NUM!Sw itching Values Appraisal Sw itching %

Value Value ChangeIncremental Revenues 780 536 647 051 -17.10%Incremental Inflow s 811 627 678 142 -16.45%Incremental Production Costs 603 272 469 787 22.13%Incremental Investments 31 091 -102 394 429.34%Total Incremental Outf low s 633 647 500 162 21.07%

With Project


171

Annex 5: Overall Economic Analysis(US 000) PY1 PY2 PY3 PY4 PY5 PY6 PY7 PY8-20 PY9 PY10-15 PY11 P12 PY13 PY14 PY15 PY16 PY17 PY18 PY19 PY20Programme BenefitsIncremental Benefits from Aquaculture 0 0 0 -1 -1 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2Incremental Benefits from Fisheries 3 3 25 74 149 198 198 198 198 198 198 198 198 198 198 198 198 198 198 198Incremental Benefits from Enterprise 26 26 205 616 1232 1642 1642 1642 1642 1642 1642 1642 1642 1642 1642 1642 1642 1642 1642 1642Programme Net Benefits 29 29 230 690 1379 1839 1839 1839 1839 1839 1839 1839 1839 1839 1839 1839 1839 1839 1839 1839Total Programme Net Benefits 29 29 230 690 1379 1839 1839 1839 1839 1839 1839 1839 1839 1839 1839 1839 1839 1839 1839 1839

Programme CostsInvestment Costs 862 1335 1713 849 628 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Recurrent Costs 462 462 488 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457Total Programme Costs 1324 1796 2202 1307 1085 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457

Total Project Incremental Net Benefits -1295 -1768 -1972 -617 294 1381 1381 1381 1381 1381 1381 1381 1381 1381 1381 1381 1381 1381 1381 1381IRR 15.2%

NPV @10% (US 000) 2 164Programme Benefit Stream 29 29 230 690 1379 1839 1839 1839 1839 1839 1839 1839 1839 1839 1839 1839 1839 1839 1839 1839

NPV @10% (US 000) 10233Programme Cost Stream 1324 1796 2202 1307 1085 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457

NPV @10% (US 000) 8070Programme Net Incremental Benefits -1295 -1768 -1972 -617 294 1381 1381 1381 1381 1381 1381 1381 1381 1381 1381 1381 1381 1381 1381 1381

NPV @10% (US 000) 2164


Incremental Benefits 10233 8070 -21%Incremental Costs 8070 10233 27%

The Republic of AngolaArtisanal Fisheries and Aquaculture ProjectDetailed design reportAppendix 11: Draft AFAP implementation manual

173

Appendix 11: Draft project implementation manual

1. To be elaborated after appraisal

The Republic of AngolaArtisanal Fisheries and Aquaculture ProjectDetailed design reportAppendix 12: Compliance with IFAD policies

175

Appendix 12: Compliance with IFAD policies

1. The Project is consistent with and supportive of the key IFAD policies and strategies that focuson rural development specifically: Targeting Policy: Reaching the Rural Poor; Policy on GenderEquality and Women’s Empowerment; Strategy for Knowledge Management, Rural Finance Policy,and Environmental and Natural Resource Management.

2. Targeting Policy: Reaching the Rural Poor. Project activities, implementation arrangementsand M&E system have been designed in compliance with the IFAD targeting strategy. The types ofcomponents that the Project has developed and the activities within them take into account the needsof smallholder farmers, women and the youth and are likely to be particularly attractive to the IFADtarget groups. Technical criteria were developed for the identification of specific target communities inselected project areas, including social, demographic, poverty and technical criteria. Estimateddemographic data will need to be completed as a pre-requisite for its application and food insecurehouseholds with no large productive assets. Gender (women / women headed households) and agegroup quotas (youth and adults) will be established for beneficiaries in each socio-economic targetgroup, as relevant. The Project includes a functional literacy component that will respond to a priorityskill gap. Both the extension and the community development sets of activities will encourage broadparticipation of all social, age and gender groups in all project activities. Poor men, women and youthwill be directly targeted with interventions that have a strong potential to improve their situation. Equalparticipation in the preparation of local development plans and related process will be promoted andenhanced by encouraging the participation of active men, women and youth from vulnerable and veryvulnerable strata that would not generally be visible, in demonstrations and public venues. IPA staffwill be trained in social and gender issues. Linkages will be created as relevant with the Ministry ofFamily Affairs and the Promotion of Women (MINFAMU) and OMA on project operations at local level.Furthermore, the PCU will include a Community Development Officer, who will be responsible for theeffective implementation of the Project´s targeting strategy and more broadly, over all the socialcomponents of the Project. Service providers are responsible for ensuring broad participation of alltarget groups and use of processes favourable for the promotion of equity. Specific training will beprovided to all planners and implementers on social and gender issues. The M&E Plan, the log frameand the PDR all highlight the need to collect disaggregated data by target group (socio-economicstrata), and within these, equitable gender and age group participation, as relevant. Emphasis is alsomade on the need for data aggregation to take place at different levels (community, municipality,provincial and project level for the conduction of regular participatory planning and monitoring. Yearlybroad project assessment of progress and achievements will be made through joint communitymeetings with the participation of key government, community and other stakeholder participation.Reports will contain not only disaggregated data but also gender analysis of progress made, resultsobtained and effectiveness of project strategies.

3. Policy on Gender Equality and Women’s Empowerment. Project activities, implementationarrangements and M&E system have been designed in compliance with the Framework forMainstreaming Gender in PMD operations. The Project will ensure that women are given equalopportunities to participate in the management and enjoyment of project benefits. This will be reflectedin project staff recruitment and in ensuring that women are targeted equally within target groups asrelevant through technical fisheries, aquaculture, processing and trade training, communitydevelopment interventions (including a gender awareness unit) and functional literacy training. TheProject will monitor targeting effectiveness by collecting and analysing gender disaggregated data andresults between men and women headed households and incorporate necessary adjustments. Inaddition, community planning, governance, participation, monitoring and evaluation efforts forconcerted action will include the active participation of both men and women.

4. Strategy for Knowledge Management. The knowledge management arrangements for theProject are consistent with the guidelines provided in the IFAD Strategy for Knowledge Management.The Project provides for initiatives to facilitate the institutionalisation of knowledge managementpractices. The Project´s M&E system will generate quality data that will enable IPA and the Ministry ofFisheries to carefully monitor the Project and provide high quality information on the development ofinland fisheries and aquaculture in the project area at higher levels of the Government. The hierarchyof project objectives is the founding platform for IPA to widen its participation in discussions beyondthe technical domain that it is responsible for managing in country. It is expected that as a result this


176

will strengthen the quality of IPA´s participation in the Conselho Técnico – Científico and the Conselhode Gestão Integrada and is equally equipped to participate through the Project in high-level fora onrural livelihoods and rural development, food security, nutrition and poverty reduction at national levelthat could arise as progressive attention is given to these matters in country, and in turn lead tosuccessful participation in regional and international level fora, contributing to existing knowledgebase, planning and policy discussions.

5. Rural Finance Policy. During appraisal, it is planned that AFAP will assess the potential forestablishment of rural savings and credit groups based on the experience of the PESNORTE projectin promoting and supporting basic local financial intermediation entities (“caixas de pupanza ecredito”) building on the traditional “kixikila” practices. Design work aimed at obtaining informationabout the current status of the four existing caixas was not successful and the information availabledid not allow getting even a preliminary assessment of the experiences of PESNORTE/IPA in thedelivery of financial services. It only allowed to conclude that there is demand for this type of schemesin Angola, particularly among women who are strongly involved in processing and marketing of fish.As a consequence, it was decided to further investigate these experiences with a view to deepeningthe understanding of the results and systematizing information on lessons learnt as well as identifyingwhether and how (availability of qualified service providers may be an issue) this type of financialproducts can be supported.

6. Environmental and natural resource management (ENRM). The goal of the ENRM policy isto enable poor rural people to escape from and remain out of poverty through more-productive andresilient livelihoods and ecosystems. The purpose is to integrate the sustainable management ofnatural assets across the activities of IFAD and its partners. The Project will conduct a Social andEconomic Assessment to address the relevant social and economic impacts and risks of the proposedproject. While there exist some potential adverse environmental impacts arising from the Project, andno foreseen negative indirect impact, the Social and Economic Assessment will include someenvironmental aspects and if there as necessary propose mitigation and management measuresrelevant and appropriate to the nature and scale of the project in order to enable small farmers andmicro-enterprises to play a positive role in natural resources.


177

Attachment 1: Environmental and Social Review Note

Description of project and components

1. The project goal is poverty reduced in artisanal inland fishing and small-scale fish-farminghouseholds in target communities. The project objective is improved food security and nutritionamong artisanal inland fishing and fish-farming households. The Project is divided into threecomponents: Inland Artisanal Fisheries Development (Component 1), Small-scale AquacultureDevelopment (Component 2) and Project Management (Component 3). In addition to thesecomponents, project design has incorporated a number of activities that address climate change (CC)issues as they affect fisheries and aquaculture in the Project’s two technical components.

2. The objective of Component 1 is to achieve an inclusive and sustainable development andmanagement of the inland fisheries sub-sector that in the future could be replicated in other provinces.The outcome of the Inland Fisheries Component is inclusive, sustainable inland fisheries sub-sectordevelopment and management contributing to strengthened livelihood strategies at household level.To achieve this outcome the Component will support the achievement of the following outputs: (i)Institutional capacity strengthened (national, provincial, local/extension service); (ii) Improvedcommunity participation in economic and wider local development processes; (iii) Increased quantityand quality of fish produced and sold on a sustainable basis; and (iv) Improved market relatedinfrastructure.

3. The objective of Component 2 (Aquaculture Component) is to support the Governmentpriorities for the aquaculture sub-sector. The outcome of the Component is inclusive, sustainablesmall-scale aquaculture sector management and development contributing to strengthened livelihoodstrategies at household level. To achieve this outcome the Component will support activities that leadto the following outputs: (i) Institutional capacity strengthened (national, provincial, local/extensionservice); (ii) Improved community participation in economic and wider local development processes;(iii) Increased quantity and quality of fish produced in fish ponds and sold on a sustainable basis; and(iv) Government hatchery infrastructure effectively provides project clients with required inputs

Major site characteristics

4. The Project will be implemented in Angola’s central northern region in the four provinces ofBengo, North Kwanza, Malanje and Luanda. Component 1 will cover a continuous area, consisting ofthe comunas on the North side of the Kwanza River (a navigable route throughout the year, of theutmost importance in terms of transport of passengers and goods), between Dondo, in the KwanzaNorth Province, and the Kwanza mouth, in Luanda Province. The area will also cover the comunastraversed by Dande and Bengo rivers, in the province of Bengo and Luanda. As in the case of theKwanza River, this latter area presents a large number of lakes, some of which are seasonally orpermanently linked to those rivers. All fishing communities are located around the lakes and along therivers. The total number of beneficiaries targeted by the component is an estimated 15,000represented by fishermen (10,000) and processors and small traders (5,000). Geographically, some5.000 would be in Bengo and 2.000 and 8,000 from North Kwanza and Luanda provinces,respectively.

5. Component 2 will be implemented in the provinces of Malanje, North Kwanza. The Componentwill initially focus its efforts in Malanje and expand to other suitable areas in the other two provinces.The total number of beneficiaries targeted by the component is an estimated 800 families representedby 724 families engaged in small-scale family fish farming, 62 engaged in aquaculture as emergingfarmers and 14 as semi-commercial fish farmers. Geographically, some 678 would be in Malanje and79 and 43 from North Kuanza and Bengo provinces, respectively.

6. The targeting strategy of the Project is based on a step-by-step selection process to determinethe geographic areas of project intervention and the final target groups at community level. Threebroad groups were identified at community level defined by their livelihood strategies, socioeconomicconditions and apparent degrees of vulnerability. These were resilient households, vulnerablehouseholds and very vulnerable assetless laborers. These broad groups do not necessarily reflect theexact reality of each target community, rather they offer a general understanding of the logic that drivelivelihood activities and the dynamics of socio-economic development of target communities.Differences will certainly be observed from community to community. Asset ownership and social


178

capital play a defining role in shaping livelihood possibilities, degree of diversification of activities, thenature of dependence on others and associated degrees of overall vulnerability to food insecurity andresilience to internal or external shocks that can affect household poverty. There did not appear to bea correlation between origin or being or with being a female headed household and presence in oneof the three groups, as both people from diverse backgrounds and women headed households wereobserved among all groups in all the communities visited.

7. It was extremely difficult to obtain specific information about demographic features, includingthe number of fishers and the percentage of fishers organized in cooperatives. No census for thefishery sector exits. The last census of the general population came from the 1970s. However, basedon field observation of 4 communities close to Dande River the dependence on fishing was higherthan in North Kwanza. Luanda province was not visited during initial project preparation withexception of one lake connected with the Kwanza River and agricultural activities seemed to bepredominant.

8. The communities in the project area are not only affected by income poverty, as householdsrely mostly on rainfed subsistence agriculture and artisanal inland fisheries. Moreover, the area ischaracterized by deep rooted multidimensional poverty, given extremely difficult access to health andeducation services, high illiteracy levels, lack of access to potable water and sanitation facilities,precarious living conditions, limited opportunities and very little ability to influence local governanceprocesses.

9. Agriculture production, inland fisheries and limited livestock production are the main sources ofrural household income. Major crops found in the project area include cassava, legumes, beans andpalm oil. Livestock production is scattered and small household-based, mainly of small livestock, pigs,goats and poultry.

10. Agricultural trade involves vegetables and fruit grown at household level specifically as cashcrops and the sale of agricultural surplus. Fishing activity in lakes is abundant counting with theparticipation of most community members. Men fish while and women process fish locally(salting/drying without salt and smoking) and also do all of the fish trade. Additional activities such asvegetal coal production, and crafts such as boat building and carving canoes out of trees are typical inthe project area or nearby areas.

Issues in natural resources management

11. Major issues related to nature resources management and environment in the project areainclude: (i) the lack of knowledge about the status of inland fisheries resources which present a highlevel of biodiversity; (ii) flooding, as seasonal floods increase in intensity and rainfall patterns areapparently changing; and (iii) water induced soil erosion. Observation on the ground indicates thatpesticides are not used for household consumption products but this may need to be verified.

12. There is currently only very limited scattered knowledge about the existing aquatic biodiversity.There were a number of surveys made in Kwanza River with the participation of South Africanresearchers as well as in East and South Angola over the period 2006 to 2009. These indicated thehigh biodiversity characteristic of the country’s inland waters including in the Kwanza River butunfortunately provided little information on the status of the resource itself. The Project will supportinland fisheries monitoring and management to gain a better understanding of the status of theresource base. This is crucial to ensure the long-term sustainability of any inland fisheries relatedactivities, including post-harvest activities. The Project will strengthen the institutional capacity byimproving the IPA extension services in the target provinces. A census of inland fisheries and theestimate of the fishing potential at the beginning of the Project will provide important information aboutthe current situation. This will be complemented by the establishment of a monitoring system as wellas through the preparation of participatory fisheries development and management plans and thestrengthening of local surveillance of fishing activities. These activities will also be informed by theoutcome of a climate change vulnerability and risk assessment to be conducted in all targetcommunities.

13. Even though there is no detailed quantitative information about post-harvest losses, there isanecdotal evidence. The Project will provide training on post-harvest issues and disseminate the useof ice to improve product quality and reduce post-harvest losses, thus reducing the pressure on thefisheries resources. The FAO TPC Project in lake Ngolome estimates the post-harvest losses at 25%,


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which sees to be a rather high figure compared to field observations. However, if true it provides animportant margin to increase the quantity of fish available for consumption and for the economics ofthe project.

14. The Project will also pilot aquaculture production as an alternative source of food productionand income generation to broaden livelihood options, in particular if the fisheries assessmentsupported under the Project demonstrates that inland fisheries resources have reached theirsustainable production limit. This is a relatively new activity in Angola and presents the opportunity toensure an environmental sound management of the sector from its early stages on. Under thiscomponent the Project will support the establishment of a monitoring system which will take intoaccount also environmental factors, including climate change related indicators. The later ones willalso be informed by the outcome of the climate change vulnerability and risk assessment to be carriedout in target communities.

15. Aquaculture production may have a number of adverse environmental impacts, including forexample issues related to the use of water for ponds, effluent management from these ponds (e.g.risk of pollution), risk of escape of exotic fish species and the risk of transmission of diseases. Themapping study for the site selection will ensure that these risks are minimized.

Potential environmental impacts and risks

16. Road interventions will be limited to spot-improvements and facilitate access to markets. Theywill also reduce the risk of soil erosion, in particular during the rainy season. The planned constructionand rehabilitation of post-harvest infrastructure, including landing and unloading sites and marketsaims at improving the working conditions of the communities. The provision of sanitation facilities,surface drainage and solid waste disposal will contribute to improving the sanitary and environmentalconditions in the communities. Water supply is here an economic good without which these objectivescannot be reached. Management of these infrastructures is a crucial problem.

17. Aquaculture ponds will be dug after an environmental impact assessment has been completedand will respect relevant government environmental protection strategies and plans. No permanentland occupation due to construction is foreseen. Project implementation will strictly follow governmentregulations on environment assessment and monitoring.

18. Climate change may bring potential risks to the long-term sustainability of the project outcomes.Strengthening of institutional and community capacities is part of the project and relevant adaptationmeasures will be identified during the project. In addition, climate change considerations aremainstreamed in a number of key activities (e.g. inland fisheries monitoring and management system;aquaculture management system; community development plans). Further actions will be taken asappropriate during project implementation, especially climate resilient design for infrastructuresystems.

19. A number of technical training and capacity development activities will also be supported by theProject. These will cover inland fisheries monitoring and management, post-harvest issues,aquaculture production and climate change awareness-raising. Training courses will include elementson productive and sustainable use of land and water resources and quality control of fisheriesproducts.

Potential social impacts and risks

20. Social impacts of the Project will be positive due to its focus on poverty reduction, participatoryapproaches and supporting interventions for the poor and vulnerable groups, including enhancementof the inland fisheries management system, improvement of relevant infrastructure systems (e.g. post-harvest structures, tertiary roads) which will improve product quality and facilitate market access andthe introduction of aquaculture production, including related service infrastructure (e.g. hatchery0 asalternative livelihood option.

21. The Project will facilitate gender mainstreaming by addressing women’s needs, ensuring equalparticipation in project implementation and management and ensuring that women enjoy the benefitsof the Project on equal terms. Specific measures include: indicators on women’s participation aredefined and will be closely monitored during project implementation; gender disaggregated


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information will be collected in the baseline survey, end of project survey and throughout the projectlifetime; a gender-sensitive climate change vulnerability and risk assessment will be conducted,women will be specifically included in all interventions targeting specific socio-economic groups.

22. Some interventions included in the Project will make concrete contributions to localenvironment and ecosystem protection, namely the fisheries management plans and the coastalmanagement framework, but also the outcome of the climate change vulnerability and riskassessments. Aquaculture diversifies the income sources of the target group and can contribute toreduce the pressure on natural resources. Training and capacity development on inland fisheriesmanagement and on aquaculture production will improve local capacity in relation to sustainablenature resources management. Overall, the Project will have no major aggregate implication toexternal environment and society.

Environmental category

23. The environmental analysis conducted on the project interventions has determined thatthe Project would not have any major negative environmental impact. Rather it would have somepositive impacts as it will strengthen the capacity to assess, monitor and manage inland fisheriesresources as well as aquaculture production. The Project also improves infrastructure systems andstrengthens the capacity on environment sustainability issues, including climate change, ofinstitutional stakeholders as well as of the communities.

On the basis of the above mentioned features of the project and according to IFAD’sAdministrative Procedures for Environmental and Social Assessment in the Project Cycle (EB2009/96/R.7) the Project is classified as B Category.

Recommendations to improve natural resources management and mitigate environmentalconcerns

24. Measures included in the design to eliminate or reduce potential adverse environmental andsocial impacts, and to make better use of opportunities are presented in Table 1.

Table 1. Measures for Mitigating Negative ImpactsProject

InterventionsEnvironmental Impact Measures included to mitigate

negative impacts in the ProjectDesign

Positive impact Negative Impact

1. Spot-improvementof tertiaryroads

reduced soil erosionafter construction;

reduced landslideafter construction

Soil erosionduringconstruction;

Changes ofwatercoursesduringconstruction.

Avoid construction in rainy season; Avoid water courses diversion; Conduct detailed environment

assessment prior to construction toensure that all risks averted;

Protect slopes and vegetationalong road alignment.

2. Aquaculturepondconstruction

Improved agricultureproduction andincome.


Conduct detailed environmentassessment prior to construction toensure that all risks averted;

Adopt participatory decisionmaking to ensure social equity;

Minimize construction period; Avoid construction in rainy season; Incorporate climate change

impacts in engineering design3. Aquacultureproduction

Additional incomegenerating activity

Contribution todomestic foodsecurity

Potential use ofantibiotics

Pollution fromfeed residues

Escapes intorivers and otherwater bodies

Conduct detailed environmentassessment prior to construction toensure that all risks averted;

Provide training on bestaquaculture practices

4. Hatcheryrehabilitation

Local access tofingerlings


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5. Upgradingandconstruction ofprocessing,marketing andstoragefacilities

Increased incomesand improvedlivelihoods

Improved safety andquality of fishingproducts

More secureconditions forpassengers andcrews on landing sites


Environmentpollution fromprocessingfacilities (e.g.smoking ovens)

Increased use offuel wood forsmoking

Following government environmentassessment and monitoringprocedure;

Avoid construction during rainyseason;

Proper restoration of vegetationafter construction;

Close monitoring duringimplementation.

Monitoring aspects

25. A qualified national environmental agency will be contracted to prepare an overall projectenvironment impacts assessment report, covering aspects on potential environment impacts,proposed mitigating measures, monitoring and evaluation plan, and responsible agencies forimplementation. The assessment report will be reviewed and cleared by IPA. The cleared report willthen be submitted to the Ministry of Fisheries for approval. Following the approved monitoring plan,the Ministry of the Environment will conduct two environment impact assessments to respectiveproject interventions at the beginning and completion of the project; and organize regular monitoringon project interventions during their implementation. Relevant costs have been included in the projectmanagement budget.

26. Participatory environmental monitoring will be ensured at community level as environment andnatural resource management is an integral part of the community development plans. Thevulnerability and risk assessment conducted by the Project will facilitate stakeholders developing theirown vision on environmental and social issues of their community, besides the production aspects,and define appropriate indicators for self-monitoring.

Record of consultations

27. Consultations on social and environmental issues were carried out during the Early DesignMission with male and female members from the potential target groups, communities and officials atthe community, provincial and national level. Tables 2 and 3 record the consultations with relevantgovernment agencies and rural communities respectively.

Table 2. Record of Government Consultation

Date Agencies Person ConsultedName Position

13 June 2013 Ministry of Agriculture Maria EugéniaFrancisco da Silva

Head of Food SecurityUnit

17 June 2013 Provincial Directorate ofFamily Affairs and thePromotion of Women inMalanje

Madalena Julião Head of Department ofFamily Policies

17 June 2013 Provincial Directorate ofAgriculture and Fisheries

N.A. Provincial DIrector

18 June 2013 Municipal GovernmentDondo (North KwanzaProvince)

Sr. Xavier Andrade Municipal Director

20 June 2013 Provincial GovernmentBengo,

Sr. AgostinhoSebastião

N.A.

27 June 2013 Ministry of the Environment Carlos AvelinoManuel Cadete

Outgoing GEF Focal Point

27 June 2013 Ministry of the Environment Abias Moma Huongo UNFCCC Focal Point

27 June 13 National Institute ofStatistics

Sr. Lukoki ArturSr. AgostinhoSardinha

Deputy Director and Headof the Department forNational Accounts andStatistics Coordination


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Date Agencies Person ConsultedName Position

27 June 2013 Ministry of Health Sra. Helga ReisFreitas

Director of Public Health

28 June 2013 Ministry of the Environment Kamia de Carvalho GEF Focal Point

26 June 2013 National FishingInvestigation Institute (INIP)

Dr. Antonio da Silva Director

26 June 2013 National FishingInvestigation Institute (INIP)

Dr. Filomena deFatima de CV Velho

Technical Director

1 July 2013 National FishingInvestigation Institute (INIP)

Silvi N’Siangangu NansClim focal point

1 July 2013 National FishingInvestigation Institute (INIP)

Francisco de Almeida Head of environment andinland ecosystems

1 July 2013 UNDP Amaya Olivares Environmental projects02 July 2013 Ministry of Youth and

CultureSr. Kikas ManuelMachado

Head of the Departmentfor Youth Associations andUse of Spare Time

3 July 2013 Ministry of Family Affairsand the Promotion ofWomen

Sr. António JoãoSra. Luisa Calungo

National Director of FamilyPoliciesTechnician of theDepartment of Support toFamilies

03 July 2013 Instituto Nacional deCombate contra o HIV/SIDA

Sra. RosangelaRodrigues

Assistant to the DirectorGeneral

Table 3. Record of Social Consultation

Date and Time Communities Person ConsultedName Position

February 2013 Quiminha reservoir Fishers17 June 2013 Kafandunga (Malanje) Representatives of

Association Waringa Mbote17 June 2013 Meeting with

representatives ofcommunities in Malanjeand Lukembo municípioand of Kussabala andKudissanga,

André Binzole, PedroDanilo and two notregistered (Bernard?)

Fishers and processors

18 June 2013 Quiombe 4 Community members, FDGwomen

18 June 2013 Kiombe, Mucoso,Tshombe and Ngolome(Bernard?)

Coordinators/sobas, fishersand processors

19 June 2013 Mucozu Community members, FGDwomen

19 June 2013 N´golome Community representatives20 June 2013 Barra de Dande FGD with women from

Association Mukenguenje20 June 2013 Iberdua, Ulua, Bombo

and SungueCoordinators/sobas, fishersand processors, Vice-administrator of Barra doDande comuna

21 June 2013 Bico de Talho and Zenzade Golungo

3 interviews to women,community representatives,,FGD with youth, brief FGDwith adult men


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Date and Time Communities Person ConsultedName Position

2 July 2013 QuiminhareservoireCauigia/DiobeLagoon (Close to Cabalamarket/landing site inKwanza river

Fishers, processors, traders,transporters

The Republic of AngolaArtisanal Fisheries and Aquaculture ProjectDetailed design reportAppendix 13: Contents of the Project Life File

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Appendix 13: Contents of the Project Life File

Task Force (in-Country)

To be established at negotiations

CPMT Members (in-house)

East and Southern Africa Division (ESA) Perin Saint Ange, regional Director, ESA Geoffrey Livingstone, Regional Economist, ESA Robson Mutandi CPM, Angola Francisco Pichon, CPM Tanzania Alessandro Marini, CPM, Uganda, Ambrosio Barros, CPO, Mozambique

Office of the General Counsel (LEG) Liam Chica, Counsel, LEG

Policy and Technical Advisory Division (PTA) Marco Camagni, Lead advisor, PTA

Controllers and Financial Services Division (CFS) Bob Creswell, Senior Finance Officer, CFS

Design Team

The project design process Mission composition: First Mission composition: Carlo Bravi, IFADPortfolio Manager for Angola, and Random DuBois, who supported and supervised the team work;Joaquim Tenreiro de Almeida, who coordinated the work of the team members in Angola, specialist inInstitutional Development and Fisheries; Chiqui Arregui, specialist in Social Development, M&E andGender; Jelle Tas, Economist; Bernard Adrien, specialist in Coastal Fisheries and Marketing; RuiFalcão, specialist in Fisheries Project Management; Magnus van der Meer, specialist in Aquaculture;Nicole Franz, specialist in Adaptation of Fisheries to Climate Change; Ambrósio Barros, specialist inM&E and KM; Danilo Pisani, specialist in Financial Management; and Fernando Pacheco, specialist inInstitutional Development. Marco Camagni, IFAD Technical Advisor, joined the team for the final partof the mission.Final Design Mission Composition: Robson Mutandi, CPM Angola; Shakib Mbabaali - Lead Writer andInstitutions Consultant; Tas Jelle – Economist and Financial Analyst; Bernard Adrien – Value ChainConsultant Market Analyst; Magus van der Meer- Fisheries Expert; Rauno Zander - CommunitySavings Mobilization Consultant; and Rui Falcão – Coordinator, Sofala Bank Fisheries Project.IFAD staff from headquarters were also heavily involved in the process.

Project development timeline for AFAP

Request from the government by letter dated December, 2012 Consultations with Angola's government on 5-12 February, 2013 05 April 2013: presentation of the Concept Note to OSC Design mission visited Angola from 9 June to 5 July, 2013 Final Design 25 August to 5 September 2014

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