INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE I. Basic Information Date prepared/updated: 06/12/2014 Report No.: AC7097 1. Basic Project Data Original Project ID: P095210 Original Project Name: Niger Agro- Pastoral Export and Market Development Project Country: Niger Project ID: P148681 Project Name: Niger Additional Financing to the Agro-sylvo-pastoral Exports and Markets Development Project Task Team Leader: Yeyande Kasse Sangho Estimated Appraisal Date: June 9, 2014 Estimated Board Date: August 5, 2014 Managing Unit: AFTA1 Lending Instrument: Investment Project Financing Sector: Agro-industry, marketing, and trade (30%);Irrigation and drainage (25%);Animal production (20%);SME Finance (15%);Public administration- Agriculture, fishing and forestry (10%) Theme: Rural services and infrastructure (60%);Rural markets (25%);Rural policies and institutions (15%) IBRD Amount (US$m.): 0 IDA Amount (US$m.): 13.8 GEF Amount (US$m.): 0 PCF Amount (US$m.): 0 Other financing amounts by source: BORROWER/RECIPIENT 0.00 Financing Gap 0.00 0.00 Environmental Category: B - Partial Assessment Simplified Processing Simple [] Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) Yes [ ] No [X] or OP 8.00 (Rapid Response to Crises and Emergencies) 2. Project Objectives 2. Project Objectives The PDO under the AF extension phase remains unchanged. The PRODEX Development Objective (PDO) is to increase the value of selected products marketed by project supported producers. 3. Project Description Conditions This component aims at building sound public-private partnerships in order to structure and enhance the coordination between the key building-blocks in the priority supply chains. For this component, the Additional Financing (AF) will be used to: (i) adjust the configuration of storage and food processing models, (ii) improve the packaging and the individual or collective marketing techniques, (iii) support the existing market information systems (vi) provide institutional support to national and regional inter- professional bodies/Associations leading to their adoption of marketing and advocacy best practices. Subcomponent A1: Support to supply chain coordination This subcomponent aims to structure and stimulate the coordination between the key building-blocks in the selected supply chain (on-hoof animals/red meat/skins and hides, cowpeas, onion, sesame, Arabic gum, yellow grass nuts/souchet. This subcomponent will be carried out through two activities: Activity 1 - Support to the functioning of the IPO. This activity implies the capacity building of IPO established in the initial phase of the project so that they can operate adequately, provide value added services to their members, and expand their social and professional basis. Specific actions include: (i) institutional support --operational support for the procurement of office equipment; (ii) technical assistance and monitoring of IPO; (iii) organization of 12 experience-exchange trips to 350 people belonging to the PFO; (iv) capacity building of 2500 PFO members of which at least 30% women; and (v) support for the development of the IP agricultural law; the bill will be discussed and validated in a participatory manner at a national workshop. Activity 2 – Support IPO in the implementation of their strategic plans. Specific actions include: (i) the conduct of market studies for the priority supply chains; (ii) the development of value chain strategic development plans; (iii) the enforcement of the contracts of two operators to the implementation of action plans supporting the strategic plans (iv) the organization of annual inter-professional consultative groups to prepare campaigns and monitor performance; (v) the organization of forums --value chain table,- bringing together the key players in the targeted value chains and partner financial institutions, including the Central bank, to address the lower risk profile of the agricultural export sectors and reassess the agriculture loan guarantee issues. Subcomponent A2 : Support to Marketing activities and competitiveness. This subcomponent will support knowledge development activities and the capacity building of key public and private actors in the targeted supply chains leading to their adoption of supply chain approach and better understanding of market mechanisms. The Additional Financing will support the following activities: Activity 1: Support to Marketing activities. Specific actions are: (i) carry out market research to identify on the one hand, growth-led markets and understand the underlying market mechanisms, and on the other hand, develop strategies to position processed products on niche markets, including the Nigerian diaspora: kilichi for meat, Gabou for onion, flour, couscous and cowpea (béroua,) and sesame by-products; (ii) labeling and promote the Niger origin by supporting the IP Committee; (iii) facilitate trade missions under inter-professional coordination; (iv) fund the participation in commercial fairs of value chain actors; and (v) support existing market information systems --PRODEX will continue to support 3 SIM (A, B, RECA) and the BVCP observatory enabling them to improve the quality of their services. Activity 2: Development of market knowledge and dissemination of innovation. This activity includes: (i) the facilitation of contracts between actors in the value chains through the development of export contract samples and training of relevant firms for their adoption, (ii ) extension of export tests in the priority supply chains and livestock markets management tests as well as sales of livestock based on animal weight in at least 3 markets; (iii) dissemination and promotion of sorting / packaging using mesh bags -- onion IP will play a central role in this activity, including site identification; (iv) facilitation of trade missions under the coordination of inter-professions; (iv) involving the actors in the dissemination and building awareness of the destination-markets based importers; (v) fostering the production of improved seeds in partnership with INRAN for onion varietal selection; (vi) bio-security screening, and in partnership with FPIB and DGA use of modern techniques for plant products preservation as well as hides and skins tanning. COMPONENT B : Development of financial instruments This component aims at addressing the financing needs for the development of micro, small and medium enterprises (MSMEs) and cooperatives for business expansion in the short term, while building blocks for the access to sustainable financial services. Subcomponent B1: Provision of Matching Grants Activities under this subcomponent will target a minimum set of subprojects in the production segment (particularly women-led SP to improve their participation in the project), and sub-projects targeted by the impact study (storage / preservation, processing and marketing). Relevant subprojects selected under the AF will deal with the onion industry and third window (275 sub-projects), cowpeas and the second window (71 sub- projects) and BVCP (51 subprojects), making a total of 397 SP. These SPs will benefit from MG funding similar to the first generation SPs and a technical assistance (management kit) covering financial and commercial management to help ensuring their profitability and attractiveness to financial institutions. Subcomponent B2: Facilitation of access to credit This sub-component encompasses MSMEs operating along the value chains supported by the PRODEX and aims at strengthening the sub-projects with high potential established in the original project and to support the emergence of agricultural enterprises/facilities that can boost value chains supported by the PRODEX and establish lasting business relationships with financial institutions. To this end, the PRODEX has defined three types of MSMEs: (i) Type 1 includes existing sub- projects with satisfactory performance and new subprojects funded under the AF. The objective is to support 800 first generation SP and 362 additional under the AF; (ii) Type 2 corresponds to high potential SP or potential agricultural SMEs (50 SMEs) the investment needs of which are equal to FCFA 50 million or less; and (iii ) Type 3 includes agricultural SMEs (15 SMEs) with investment needs over FCFA 50 million. The selection of the PRODEX-supported MSMEs will be based on their potential (assessment using a diagnostic tool developed in a participative manner) and their ability to integrate a well-defined business model along the priority value chains. The selection criteria will be defined in the procedures manual of the project. Activity 1: Facilitation of access to finance for MSMEs The facilitation of access to bank financing will be organized around existing instruments in the financial sector. The BOA is the beneficiary of a Portfolio Guarantee Fund (ARIZ) financed by AFD. The SAHFI / TANYO group offers a credit guarantee product sponsored by three major banks and will be assisting SMEs to access credit from those banks. Asusu Microfinance SA has set up a Portfolio Guarantee Fund (DCA Guarantee) of $ 350,000 funded by USAID to encourage the financing of small rural enterprises. Ecobank Niger has also signed with USAID a Portfolio Guarantee Mechanism covering loans to agricultural SMEs. Mcrofinance Institutions (MFI) operating in 12 municipalities in the regions of Zinder and Dosso have also set up a credit line of € 1, 5 million funded by the EU. These financial institutions will be offered specific training to reinforce their capacities in agriculture value chain financing. In addition to these instruments and to demonstrate that financing of agriculture can be profitable, the project will provide a one-year resident technical assistance to BOA with the view to increase the capacity of this institution to develop financial products, including agriculture risks mitigation tools that are affordable and suit the needs of agricultural SMEs in Niger. Activity 2: Technical assistance and monitoring of project-supported MSMEs The project will provide technical assistance and monitoring tailored to the specific needs of each type of business. These services will be provided through a partnership with AGEX and the SAHFI / TANYO group. Microenterprises of type 1 will be assisted by the AGEX in the technical field and by independent secondary services providers to adopt basic management practices. The independent secondary services providers will be initially trained by SAHFI / TANYO in the use of ILO kit. SAHFI / TANYO will carry out the related quality control. SMEs of type 2 receive technical assistance funded by the PRODEX for the structuring of their business (technical support thru follow ups, technical study and preparation of business plan), support for the mobilization of funding from partner institutions and the upgrading of their accounting and financial information. The PRODEX will partially fund the investment needs provided its total contribution does not exceed 20% of investment needs. They will mobilize bank loan to supplement the facility granted by the project. This funding will take place through sub-projects prepared by the SME in compliance with the project's manual of procedures for financing subprojects. To be efficient and competitive, these firms will benefit from regular monitoring by experts (Technologist, Agronomist, Veterinarian ...) and business development services on demand. These services will be provided on the one hand by the AGEX and on the other hand by independent secondary services providers. The independent secondary services providers will be initially trained by SAHFI / TANYO for the subsequent coaching of these SME. SAHFI / TANYO will ensure the required quality control. For SME of type 3: the PRODEX will conduct a technical assessment of their operations and, if necessary, link them with appropriate development partners for upgrading. Firms rated found to be operating (technical) satisfactorily will receive support through the project grant for the preparation of business plans and the mobilization of bank credit. To improve/secure their performance, this category of SMEs will also benefit, on demand, from regular monitoring by experts (Technologist, Agronomist, Veterinarian ...) and coaching. However, all these services will be funded by the company on its own resources. The PRODEX ensure that adequate provisions are made when assessing the needs for investment during the business plan preparation. Component C. Securing Irrigation Potential The objective is to increase the agro-sylvo-pastoral production systems capacity by securing the potential of the irrigated areas. The targeted actions include: (i) the implementation of three (3) weirs and catchment dams (about 1050 ha to be secured for further irrigation), (ii) the implementation of site protection systems (854 ha); and (iii) the construction of feeder roads connection the selected production sites to the market (42.8km). With the implementation of the AF, the objectives are revised as follows: - 3750 ha of secured land of with additional 1,050 ha; - 3800 ha of protected land which additional 854 ha; - 70 km of access roads with 30 km from additional track. This component is structured in three subcomponents : Subcomponent C1: Construction, or rehabilitation, and site protection 1. The weirs and catchment dams of Galma, Magaria and Tchidafawa are implemented The project will support the rehabilitation or construction of community irrigation works (weirs and small catchment dams, irrigation sites protection) threatened by dune encroachment. The beneficiaries (communes and communities) are the owners and with the technical assistance of DGRR. TFCU and DGGR will determine the rules of operation and maintenance of such works. Three catchment dams will be implemented in the valleys of Galma, Magaria and Tchidafawa whose ODA and CAD studies should be performed or updated. The construction of these structures will secure additional irrigable area estimated at 1,050 ha. 2. Sub-projects to protect threatened priority sites will be implemented. The AF will fund the implementation of 8 protection sub-projects whose bid documents will prepared and work implemented with the support of service providers (NGOs and GIE project partners). The implementation of these activities will enable the treatment of 318 ha and the protection of 854 ha. Sub-component C2: Facilitation of access to markets The project will support the rehabilitation, treatment of critical points or the construction of feeder roads (segment less than 20km) that link irrigated areas or livestock markets to secondary and tertiary roads. As part of the implementation of the original project, it was carried out the study of 105 km of which approximately 43.85km were completed, and contracts of 19.9 km are signed for an execution under the original project. The FA will implement 30 km with contracts are ready for signature. Sub-component C3: Environmental monitoring 1. the environmental and social surveillance of sub-projects These activities will be implemented through a partnership agreement between the Project and the Office of Environmental Assessment and Impact Studies (BEEEI). The implementation of the partnership agreement between the BEEEI and PRODEX falls within the scope of support for the implementation of the Environmental and Social Management Framework (ESMF) of the project. The support will enable TFCU to review sub-project environmental and social impact reports (ESIA) submitted for funding to the project and environmental monitoring (audit of the implementation of mitigation measures under funded PRODEX sub-projects). 2. The environnemental monitoring of ground water in irrigation areas The Project will support the monitoring of ground resources (fragile ground water) in sensitive project areas through a partnership with the CNSEE (Centre National de Suivi Économique et Environmental) and the University of Niamey. 3. Support to communities for the local monitoring of ground water in irrigated areas The project will support the creation of water users'associations in partnership with other actors to ensure improvement of irrigated areas and water catchments management. So subsequent to information/awareness missions, the project intends to support the establishment of water users' associations in some irrigation areas in partnership with other projects working in the field. 4. Financing of Succinct Resettlement Plans (PSR): Approval and implementation of compensation sub-projects related to people affected by infrastructure sub-projects (thresholds and slopes). Component D. Project Coordination, Management, Monitoring, and Evaluation ($2.36 million) This component will persue the same objective ensuring effective implementation of the Project through: (i) a mechanism for efficient control, (ii) coordination of activities, (iii) an effective administrative and financial management, (iv) adequate support to private initiatives of players on the field, (v) monitoring and evaluation of results and impacts adequate. The Project will finance the following activities: (a) setting up of a participatory monitoring and evaluation of results and impacts through a real stakeholder involvement, (b) development of institutional, agricultural and promotion of communication channels; (c) achievement of intermediate and impact studies, (d) strengthening of the collection and dissemination of results through a real involvement of all parties. Subcomponent D1. Project coordination and management: The objective of the administrative and financial management is to provide the different project actors with the resources (human, equipment and financial) necessary for the implementation of the project activities. The Project will support incremental costs associated with TFCU and regional focal points staff, operating and training expenses, external audits, the communication and procurement as well as the periodic planning and budgeting activities at regional and national levels. PRODEX's current institutional setting will be amended to add: - One ag, processing specialist who will be in charge of every aspect of technology issues; and, - One value chain expert in charge of securing the value chain approach in the project. Subcomponent D2. Monitoring and evaluation (M&E): The objective of the subcomponent is to implement the monitoring and evaluation system of the project. The project will support the operationalization of the monitoring and evaluation system. In this respect the FA will finance (i) consulting services; (ii) the capacity building of Focal Points and their assistants (training related to the management of the sub-project database); (iii) the preparation and conduct of joint missions and internal supervision and; (iv) the production, printing and publishing of project documents. This will ensure continuous and close monitoring of performance and assessment of results at the end of the project. The final evaluation will be conducted independently by specialized service providers. The approach will be interactive and involve the various partners involved in the implementation of the Project. Subcomponent D3. Project's Institutional Support: The objective of this subcomponent is to assist the HC/ i3N for: (i) the implementation of components A, B, and C which include activities that integrate agricultural risks dimension (ii) the promotion of agricultural risks management in food security and nutrition programs; and (iii) the preparation of the WB Country Assistance Strategy. This subcomponent will also support the functioning of the Ministry of Agriculture Steering Committee in charge of project oversight. 4. Project Location and salient physical characteristics relevant to the safeguard analysis Project implementation will be countrywide. Since all the sub-projects will be demand driven, their exact location cannot be determined in advance. 5. Environmental and Social Safeguards Specialists Ms Lucienne M. M'Baipor (AFTCS) Mr Maman-Sani Issa (AFTN2) 6. Safeguard Policies Triggered Yes No Environmental Assessment (OP/BP 4.01) X Natural Habitats (OP/BP 4.04) X Forests (OP/BP 4.36) X Pest Management (OP 4.09) X Physical Cultural Resources (OP/BP 4.11) X Indigenous Peoples (OP/BP 4.10) X Involuntary Resettlement (OP/BP 4.12) X Safety of Dams (OP/BP 4.37) X Projects on International Waterways (OP/BP 7.50) X Projects in Disputed Areas (OP/BP 7.60) X II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: The additional financing will not change the scope of the project, and consequently there will be no new impacts as a result of the additional resources. In conformity with the World Bank's OP/BP 4.01 and the Government's Environmental impact assessment legislation, the updated Environmental and Social Management Framework (ESMF) has been disclosed on [DATE], along with updated Resettlement Policy Framework (RPF) and Pest Management Plan (PMP). The environmental and social analysis carried out through the updated safeguard instruments revealed no potential large scale, significant or irreversible impact. Improvements due to irrigated agriculture can have potential to alter hydrological conditions in the project areas, increase in hydrological diseases that may affect water quality from runoff of excess fertilizers and pesticides. A few families are likely to need resettlement support due to project investments. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: NA 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. NA 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. The Project Technical and Fiduciary Coordination Unit (PTFCU) has experience with the World Bank Safeguards policies' requirements through the original project which its overall safeguards is satisfactory. During project implementation, all sub-projects have been subject to environmental and social screening and categorization process to minimize the potential negative impacts of these activities. The ESMF guaranties sustainability through mitigation measures. And where applicable, a simplified ESIA (including an ESMP) and/or a RAP were prepared, consulted upon and disclosed in country and in the InfoShop. Works contracts and bidding documents included environmental and social clauses incorporated, in order to enable contractors to follow up on environmental and social due diligence and to mitigate the anticipated negative impacts. The updated ESMF and RPF, based on lessons learned from experience implementing these safeguard instruments, include sound institutional arrangements, outlining the roles and responsibilities of key various stakeholder groups involved, for screening, review and approval of sub-projects, as well as implementation and monitoring of their mitigation measures. The ongoing project achieves excellent results in building the capacity for the PTFCU, the Regional Focal Points for the project, members of the Regional Technical subprojects' Selection Committees, and the various Implementing Agencies. The additional financing will build on these initial gains and the updated safeguard instruments include provisions to further strengthen the capacity of the various stakeholders. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The ESMF, the RPF and the PMP have been updated following a broad-based consultation framework, involving all relevant stakeholders who include (farmers/producers platform, traders, small agro-processors, local services service providers, input suppliers, local NGOs, exporters involved at the various levels of the selected products the technical partners (Ministries in charge of Livestock, Agriculture, Commerce, Competitiveness and their respective regional Directorates ). During the implementation of the original project, the stakeholders that were consulted in the preparation of the safeguard documents include the direct beneficiaries and potentially affected people (producer organizations and agribusiness associations) and the various agricultural, environmental, social, and health agencies. All safeguard instruments were cleared and disclosed in the country and at the World Bank Infohop, prior to the project appraisal. Prior to disclosure in-country and at World Bank Infoshop, stakeholders' workshops were organized by the PTFCU. This participatory approach will continue and will be carried out throughout the additional financing B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank 03/25/2014 Date of "in-country" disclosure 05/20/2014 Date of submission to InfoShop 05/29/2014 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors Resettlement Action Plan/Framework/Policy Process: Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank 01/21/2014 Date of "in-country" disclosure 05/20/2014 Date of submission to InfoShop 05/29/2014 Indigenous Peoples Plan/Planning Framework: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Pest Management Plan: Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank 03/31/2014 Date of "in-country" disclosure 05/20/2014 Date of submission to InfoShop 05/29/2014 * If the project triggers the Pest Management and/or Physical Cultural Resources, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit or Sector Manager (SM) Yes review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the Yes credit/loan? OP 4.09 - Pest Management Does the EA adequately address the pest management issues? Yes Is a separate PMP required? Yes If yes, has the PMP been reviewed and approved by a safeguards specialist or Yes SM? Are PMP requirements included in project design? If yes, does the project team include a Pest Management Specialist? OP/BP 4.11 - Physical Cultural Resources Does the EA include adequate measures related to cultural property? Yes Does the credit/loan incorporate mechanisms to mitigate the potential Yes adverse impacts on cultural property? OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process Yes framework (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Sector Yes Manager review the plan? OP 7.50 - Projects on International Waterways Have the other riparians been notified of the project? Yes If the project falls under one of the exceptions to the notification N/A requirement, has this been cleared with the Legal Department, and the memo to the RVP prepared and sent? Has the RVP approved such an exception? N/A The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank's No Infoshop? Have relevant documents been disclosed in-country in a public place in a No form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities Yes been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project Yes cost? Does the Monitoring and Evaluation system of the project include the Yes monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the Yes borrower and the same been adequately reflected in the project legal documents? D. Approvals Signed and submitted by: Name Date Task Team Leader: Ms Yeyande Kasse Sangho 03/24/2014 Environmental Specialist: Mr Maman-Sani Issa 03/25/2014 Social Development Specialist Ms Lucienne M. M'Baipor 03/25/2014 Additional Environmental and/or Mr Medou Lo 03/25/2014 Social Development Specialist(s): Approved by: Regional Safeguards Coordinator: Ms Alexandra C. Bezeredi 06/01/2014 Comments: Sector Manager: Mr Martien Van Nieuwkoop 06/10/2014 Comments: