The World Bank Sustainable Agricultural Intensification and Food Security Project (P164520) Combined Project Information Documents / Integrated Safeguards Datasheet (PID/ISDS) Appraisal Stage | Date Prepared/Updated: 22-Jun-2018 | Report No: PIDISDSA24381 Jun 08, 2018 Page 1 of 27 The World Bank Sustainable Agricultural Intensification and Food Security Project (P164520) BASIC INFORMATION OPS_TABLE_BASIC_DATA A. Basic Project Data Country Project ID Project Name Parent Project ID (if any) Rwanda P164520 Sustainable Agricultural Intensification and Food Security Project Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) AFRICA 28-May-2018 29-Jun-2018 Agriculture Financing Instrument Borrower(s) Implementing Agency Investment Project Financing Republic of Rwanda Rwanda Agriculture and Animal Resources Board (RAB) Proposed Development Objective(s) To increase agricultural productivity, market access, and food security of the targeted beneficiaries in the project areas. Components Component 1: Institutional Strengthening, Agriculture Productivity Enhancement and Nutrition Improvement Component 2: Irrigation and water use efficiency Component 3: Market Linkages and Value Addition Investment Support Component 4: Project Management and Technical Assistance PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 26.30 Total Financing 26.30 of which IBRD/IDA 0.00 Financing Gap 0.00 DETAILS -NewFinEnh1 Non-World Bank Group Financing Jun 08, 2018 Page 2 of 27 The World Bank Sustainable Agricultural Intensification and Food Security Project (P164520) Trust Funds 26.30 Global Agriculture and Food Security Program 26.30 Environmental Assessment Category B-Partial Assessment Decision The review did authorize the team to appraise and negotiate Other Decision (as needed) B. Introduction and Context Country Context 1. Despite being among Africa’s poorest countries, Rwanda has achieved impressive growth and poverty reduction over the last decade. However, the country is still dependent on Official Development Assistance which finances approximately 40 percent of the country’s annual budget. Rwanda’s economy has grown at 7.9 percent per year since 2000. Between 2000 and 2016, gross domestic product (GDP) per capita has increased from US$242 in 2000 to US$729 and poverty has fallen from 60.3 percent to 39.1 percent.1 Inequality has declined as well with the Gini Coefficient dropping from 0.49 in 2011 to 0.45 in 2014. Life expectancy at birth has increased from 48.2 years in 2000 to 64.5 years in 2015,2 while the child mortality rate dropped from 183 per 1000 to 42 per 1000.3 The youth literacy rate increased from 77 percent in 2010 to 85 percent in 2015.4 Financial inclusion increased from 48 percent in 2008 to 89 percent by 2016.5 However, despite strong economic growth and falling poverty levels, Rwanda faces significant challenges in meeting food demands and food security, and malnutrition remains a concern with overall stunting rates at 38 percent. Despite a reduction from 51 to 38 percent since 2005 to 2014, the stunting rate remains unacceptably high and remains higher than most countries in Sub Saharan Africa. 2. While improving, Rwanda remains a low-income country. About one in four rural households lives in extreme poverty. Poverty is still mostly a rural phenomenon: 49 percent of the poor live in rural areas compared to 22 percent in urban areas. Poverty is the highest (76.6 percent) among households (often landless) who obtain more than half of their income working on other people’s farms. On the other hand, demographic projections suggest that by 2032, rural areas will be home 1 National Institute of Statistics of Rwanda (NISR), EICV 1 –4. 2 World Bank Indicators: http://data.worldbank.org/indicator/SP.DYN.LE00.IN?locations=RW&name_desc=true 3 World Bank Indicators: http://data.worldbank.org/indicator/SP.DYN.LE00.IN?locations=RW&name_desc=true. 4 World Bank Indicators: http://data.worldbank.org/indicator/SP.DYN.LE00.IN?locations=RW&name_desc=true 5 NISR, FinScope (2016). Financial inclusion is defined as access to formal financial institutions and the uptake and usage of financial products and services. Jun 08, 2018 Page 3 of 27 The World Bank Sustainable Agricultural Intensification and Food Security Project (P164520) to an additional 2.5–3.5 million people; even though land is already so scarce (50 percent of rural farm households farm less than 0.35 ha) that few can be meaningfully accommodated in farming. With a working age population projected to increase from 5.2 million (in 2014) to 6.6 million —of which 4 million will be youth (14–35 years), realizing labor productivity potential and meeting individual aspirations will require off-farm employment opportunities. 3. After slowing to 6.1 percent in 2017, real GDP growth is expected to pick up in 2018 –2019, averaging 5.9 percent, and inflation has increased above the target ceiling of the National Bank of Rwanda (BNR) of 5 percent.6 The BNR has raised interest rates to prevent capital outflow and this will likely force a tightening of monetary policy in 2017–2018. The BNR has reduced the repo rate by 50 basis points to 5.5 percent to encourage commercial banks to lower lending rates to drive growth in private sector credit and stimulate economic growth.7 Rwanda’s large current account deficit (16 percent of GDP in 2016) has been exerting downward pressure on the Rwandan Franc. On the fiscal side, the fiscal deficit is expected to narrow from an estimated 4.7 percent of GDP in 2016/17 to 4.4 percent of GDP in 2018/19, financed by external project-based debt and some budgetary loans from development partners (DPs) and multilateral institutions.8 4. By 2050, Rwanda’s population is projected to reach 22 million of which 70 percent would reside in urban areas. Assuming similar patterns are observed elsewhere in the region, food preferences will change with increasing incomes, with increasing demand for more standardized and packaged or processed food, and food safety will become increasingly important. This will pose major challenges to the existing supply chains from domestic producers, with likely upward pressure on the food import bill and foreign currency reserves. At the same time, tapping into this emerging market can be an important opportunity for expanding domestic value chains, diversifying out of food staples and further value addition across the agriculture and food system. Meeting these challenges for the domestic market can also serve as a launch pad for successfully penetrating regional and international markets. Sectoral and Institutional Context 5. Agriculture is crucial for Rwanda’s economic growth and reduction of poverty. It accounted for about 33 percent of the GDP (2015) and contributed to 35 percent of the total decline in poverty rates over the past decade.9 Also, about 70 percent of population is engaged in the sector. At the aggregate level, domestic food production almost equals domestic demand and farmers’ own production is an important source of food at the household level. Agriculture is also a major source of export earnings. In 2016, exports of agricultural and agro-processed goods totalled about US$252 million, roughly 52 percent of total goods exports. 6. With 5.3 percent average annual growth, the value of agricultural output has more than doubled 6 EUI (European University Institute ) Country Report, January 2018. 7 EUI Country Report, January 2018. 8 EUI Country Report, November 2017. 9 World Bank (2017), Transformation of Agriculture Sector Program Phase 3, Program-for-Results (PforR), Additional Financing Program Paper Jun 08, 2018 Page 4 of 27 The World Bank Sustainable Agricultural Intensification and Food Security Project (P164520) from 2000 to 2016. A well-established set of policy frameworks and enhanced access to better agricultural inputs, which has greatly contributed to the positive agriculture sector performance. Crop yields increased significantly with the start of the Crop Intensification Program (CIP) in 2007 and the beginning of land consolidation in 2008. The total production of cassava and maize, as well as milk, meat, fish, and eggs more than doubled between 2005 and 2015. Despite these positive developments, Rwanda is yet to meet its production potential as agricultural yields have started plateauing. Current estimates indicate that major crops such as cassava, maize, wheat, potatoes, and beans are at 40–50 percent of their productivity potential, due to suboptimal use of production factors. Similarly, livestock yields have remained consistently low over time. Improvement in productivity could be through greater use of improved inputs and sustainable land husbandry techniques, improved water management and improved extension services and increased farmers access to finance. 7. Small plot sizes, limited land availability, and low soil fertility due to erosion are major constraints on farm productivity and profitability and prevent farmers from moving further up the value chain. More than 60 percent of households cultivate less than 0.6 ha10 and 15 percent of rural households’ farm less than 0.1 ha. Many of these rural households are female-headed households, cultivating only 1.32 percent of national cultivable land.11 The prevalence of small-scale, subsistence, rain-fed farming results in suboptimal agricultural practices, low crop yields, and exposure to risks such as weather-related shocks and pest and disease outbreaks. Soils in Rwanda also tend to have low levels of organic matter and around 75 percent of soils are acidic,12 with a pH below 5.5 and deficient in nitrogen and phosphorus—which are also the constraining factors for plant growth. The projected increase in the rural population, an estimated additional 2.5–3.5 million people by 2032, is likely to add more pressure on land resources and farm incomes, unless alternative employment opportunities become available. 8. Rwanda’s agricultural sector is vulnerable to climate change. With less than 20 percent of agricultural land irrigated, Rwanda relies strongly on rain-fed agriculture, making it highly vulnerable to climate change. Rwanda already experiences periodic floods and droughts that take a severe socioeconomic toll on the country and decrease food availability. With climate change, those costs could rise additionally to 1 percent of GDP per year by 2030, an estimate which excludes the heavy periodic costs of extreme events.13 Localized projections for climate change in Rwanda point unequivocally to an already occurring increase in mean temperature and a projected additional increase of 1.7 to 2.8 degrees centigrade by 2065, with a likely increase in precipitation amounts and timing variability.14 Adaptation concerns are central to the Rwanda's Green Growth and Climate Resilient Strategy (2011) and have been translated in the Rwanda’s Intended Nationally Determined Contribution. Identified adaptation actions in agriculture, which the project aims to promote, include sustainable pest management techniques to control plant parasites and pathogens, soil conservation 10 NISR, EIVC 4 2013/2014. 11 International Food Policy Research Institute (IFPRI) calculations, based on EIVC 4 data 2013/2014. 12 REMA (Rwanda Environment Management Authority). 2015. State of Environment and Outlook Report. 13 Downing et al. 2009. Economics of Climate Change in Rwanda. Stockholm Environment Institute 14 McSweeney, R. 2011. Rwanda’s Climate: Observations and Projections Appendix E. Cole, M., ed. U.K. Department for International Development. Jun 08, 2018 Page 5 of 27 The World Bank Sustainable Agricultural Intensification and Food Security Project (P164520) and land husbandry, irrigation and water management, value addition of agriculture produces, and access to market. 9. Despite substantial growth in agricultural production over the past 10 years, food security and nutrition remain a concern, especially when looking at the vulnerability to shocks at the household level. While stunting and undernourishment have been declining at a steady pace, overall stunting rates remain high by international comparison (38 percent),15 and 17.8 percent of children ages 6– 23 months do not meet the minimum acceptable diet.16 By the consolidated approach for reporting indicators of food security measure, 20 percent of households are food insecure.17 The Food Consumption Score (FCS) has improved from 65 percent in 2006 to 74 percent by 2015, but a large share of the population remains dependent on rain-fed agriculture and consumption of home produced food. Hence, people’s ability to adequately feed themselves is susceptible to shocks from the domestic harvest, that arise as result of periodic droughts and floods. Consequently, food security and nutrition remain important areas to which agriculture development can contribute. 10. The agriculture value chains face key constraints at different stages. Research and extension systems are dominated by public institutions and there are weak linkages between the two systems. Input supply systems are still driven by the public sector, and there is low awareness of the advantages of good quality inputs. Domestic seed production is low, and there is weak access to finance. Production potential is restricted by land size, subsistence and rain-fed farming, and limited access to irrigation and mechanization. Post production is affected by poor storage techniques and insufficient storage and drying infrastructure, which risks food safety and the quality of agricultural produce. There is still limited processing activity and markets are predominantly informal and unorganized. Insufficient attention has been given to the competitiveness of key value chains. Thus, they remain extremely short with limited value addition and agro-processing and little private investment, due to a finance sector reluctant to lend to agribusinesses, combined with the challenges of aggregating across thousands of small farmers to be competitive. Diversification into higher value crops has been limited to date, partly because of limited farmer knowledge and traditional risk aversion, and because the public-sector support services has been excessively focused on a narrow range of food staples under the Government’s flagship CIP. 11. The Central Government, through the Ministry of Agriculture and Animal Resources (MINAGRI), provides policy, coordination, and monitoring. Implementation responsibilities rest with implementing agencies, the Rwanda Agriculture and Animal Resources Board (RAB), National Agriculture Export Board, and donor-funded projects’ implementation units referred at as Single Project Implementing Units (SPIUs). The recent decentralization of the Rwanda’s public administration empowers local governments to deliver agricultural services to farmers and, more broadly, serve as the focal points in representing the needs of the local communities and coordinating multisectoral responses. They absorb the functions of the previous local branches of MINAGRI and rely on a new partnership with the Central Government. Extension is mainly implemented through the ‘Twigire-Muhinzi-Mworozi’ Extension Model. The ‘Twigire’ extension model is a national strategy that decentralizes extension services to the village level (Umudugudu) 15 NISR, Rwanda Demographic and Health Survey (2014/2015). 16 NISR, Rwanda Demographic and Health Survey (2014/2015). 17 NISR, Comprehensive Food Security and Vulnerability Assessment, 2015. Jun 08, 2018 Page 6 of 27 The World Bank Sustainable Agricultural Intensification and Food Security Project (P164520) to empower the agricultural promoters living daily with farmers, especially 2,500 certified facilitators of Farmer Field School (FFS) established throughout the country. This project will work primarily with these farmer promoters and support them to achieve their mandate. 12. Women in agriculture. The Government of Rwanda (GoR) has made a strong political commitment to gender equality and is determined to see this reflected in Government policies at all levels. In Rwanda, women make up 57 percent of the agriculture labor force, working an estimated 14–17 hours a day. A Women’s Empowerment in Agriculture Index survey conducted in 2012 identified the key constraints for Rwandese women and these include very high workloads, lack of access to and limited involvement in decisions on credit, and inability to control the use of income. MINAGRI, guided by its agriculture gender strategy, is making concerted efforts to mainstream gender and engage in gender-sensitive policy making and programming. To support these efforts, this project will support interventions aimed at empowering women in agriculture by targeting and including women and implementing design solutions that are tailored to their women’s needs and challenges such as improving access to finance for women, and introducing technologies and approaches that could reduce their workload. 13. Information and communication technology (ICT) and youth in agriculture. MINAGRI has recognized the importance of better coordination and appropriate solutions using ICTs for sustainable agriculture and rural development. This has led to the development of a holistic national ICT strategy for Agriculture (ICT4Rag) to address challenges in the agricultural sector. The implementation of this strategy has been done through the collaboration with youth incubators systems partnering with the Government and private sector to provide ICT-based solutions to the sector. This project will seek for modalities to work through such system in areas such as e-extension, nutrition messaging, and market information for project beneficiaries. 14. Most future growth in Rwanda’s agriculture will need to come from increasing total factor productivity (TFP). With the past performance mostly driven by productivity improvements and land expansion through public investments, the country is at a point where more efforts toward a market- led transformation and diversification is needed, in addition to continuing to improve the production at the farm level. According to recent analysis by the IFPRI, agriculture’s aggregate growth rate of 5 percent per year in recent years has been made up of land expansion (2 percentage points) and productivity growth (1.7 percentage points), with the remainder from increased labor productivity. Achieving rapid growth over the longer run will increasingly require a modified approach emphasizing the allocative efficiency and technical progress of TFP. Achieving allocative efficiency requires an increased role for farmers and private firms, and Rwanda will also need to devote more attention in the future to technological progress, or new innovations to get more from less. Rapid increases in productivity will require more mechanization, greater use of inorganic fertilizer and improved seeds, and improved access to financing. 15. The Fourth Strategic Plan for Agricultural Transformation (PSTA4),18 part of the National Strategy for Transformation (NST), covering the period of 2018–2024 has just been completed. Rwanda’s NST focuses on economic, social, and governance transformation toward the aspiration of Vision 2050. Under this vision, Rwanda aspires to attain upper middle-income country status by 2035 and 18 PSTA is the French acronym for the Strategic Plan for Agricultural Transformation. Jun 08, 2018 Page 7 of 27 The World Bank Sustainable Agricultural Intensification and Food Security Project (P164520) high-income status by 2050 with the intention of providing high quality livelihoods and living standards to Rwandese citizens by mid-century. The new agriculture strategy’s priorities include climate smart agriculture (CSA) and nutrition-sensitive agriculture (NSA), market access for farmers and feeding the cities, and support to institutions to enable them to shift from a market actor role toward a private sector-enabler role. The project implementation will focus on CSA, NSA, and promoting market access by smallholder farmers. 16. The World Bank has been supporting the development of the agricultural sector in Rwanda over the last decade. Through a three-phased Adaptable Program Loan, the World Bank Group supported the Rural Sector Support Project (RSSP3), which focused on intensifying production in the marshlands; followed by the Land Husbandry, Water Harvesting, and Hillside Irrigation Project (LWH) in 2010; and a PforR operation in 2014 through which the World Bank has supported Rwanda to increase productivity on hillsides and marshlands by supporting investment in irrigation, measures to increase farmer access to inputs, and increased use of improved agriculture practices. These operations also supported investments in rural infrastructure, which have been put in place to link productive areas to markets. These investments need to be sustained through targeted support by the GoR to better leverage private sector financing. This will require supporting institutions and continued support to farmers organizations to enable them to achieve sustained productivity growth and play a more active role in marketing their produce. The World Bank will bring substantial cross- country experience and regional knowledge to assist the GoR in that next phase of agriculture transformation. 17. The RSSP3 and LWH projects benefited and transformed the livelihoods of more than 685,000 people from over 150,000 households. The two projects created frameworks that link farmers to commodity buyers and to initiate agreements with a number of private sector investors thus improving farmers’ income. Some of the key achievements of the two projects include: (i) Increased productivity in the target irrigated hillside command area for more than ten times from a baseline of USD 492 to USD 5,639 per hectare and an increase of more than four times in targeted irrigated marshlands where farmers grow mostly rice, from a baseline of USD 662 to USD 2,629 per hectare; (ii) Increased productivity in targeted hillside catchment areas under rainfed production systems through improved land husbandry technologies and adoption of other improved farm methods, have similarly experienced a yield increase, with productivity increasing up to six-fold, for staple crops including mainly maize, beans and Irish potatoes; (iii) Increased marketing of agriculture produces with the share of commercialized commodities from projects areas has more than doubled to over 70% in 2016 from the baseline of 35%. Despite these achievements, some outstanding challenges and unreached potential can still be observed in LWH and RSSP targeted areas, and SAIP will build on those and achieve even higher results and ensure their sustainability beyond its implementation period. Additional support to strengthen agricultural value chains with a significant involvement of youth and women, placing emphasis on post-harvest handling, processing and marketing systems as well as linkages with private sector would be the natural focus of a follow-on operation after the general increased productivity observed in the areas targeted by both LWH and RSSP. SAIP will invest in ensuring the sustainability of these achievements and introduce a gradual exit strategy for the existing projects. 18. The World Bank is supporting Rwanda to achieve its next transformation goals through different complementary operations. A second PforR operation is supporting the implementation of the Jun 08, 2018 Page 8 of 27 The World Bank Sustainable Agricultural Intensification and Food Security Project (P164520) PSTA4, which focuses on strengthening the capacity of MINAGRI to create the enabling environment to encourage greater private sector investments and to enable the commercialization of key agriculture value chains in the country. However, strengthening institutional capacity alone without tackling the issue of productivity, markets, and regional integration in the sector will not be enough. In that regard, through the regional Eastern and Central Africa Agricultural Transformation Project (ECAATP), Rwanda will focus on solving the issue of land degradation, which remains the key constraint to increase productivity and support the implementation of key regional policies to facilitate farmers access to markets. By focusing on strengthening farmer organizations to play a more active role in the sector, this project mitigates the risk of leaving behind smallholder farmers, who are not yet ready to participate in purely commercialized agriculture sector. C. Proposed Development Objective(s) Development Objective(s) (From PAD) 19. To increase agricultural productivity, market access, and food security of the targeted beneficiaries in the project areas. 20. The Project Development Objective (PDO)-level indicators are the following: • Percentage increase in harvested yield of targeted crops • Percentage increase of produced commodities in targeted value chains marketed by participating producers • Food Consumption Score • Number of farmers adopting improved agricultural technology Key Results 21. The project theory of change combines transformative pathways that secure the ultimate result of improving livelihoods and food security of targeted smallholder farmers through increased agricultural productivity, value addition, and access to markets. • The social capital pathway starts from the premise that farmers’ organizations are central to a sustainable and inclusive agricultural development. Farmers organizations need to develop into strong, well-organized, and well-managed professional and financially independent institutions, able to provide services and added value to their members. The robustness and strength of the producers’ organizations will be essential to help these groups become more active partners in the next level of Rwanda’s private sector-led agriculture transformation. Experience shows that fostering strong socioeconomic institutions like SHGs, cooperatives, and WUAs, is a mid- to long-term objective. This project will continue to build the capacity of farmers organizations established by the LWH and RSSP3 through targeted interventions to bring their organizational and managerial capacities to a level where they can be independent from external assistance and become the engines of their own development. • The sustainable production pathway considers the transformative changes required to realize environmentally sustainable and resilient production and productivity increases. With the scarce land resources, increasing population, and depleting natural resource base, sustainable agriculture intensification is not an option for Rwanda’s agriculture but a Jun 08, 2018 Page 9 of 27 The World Bank Sustainable Agricultural Intensification and Food Security Project (P164520) necessity. Sustainable intensification strategies are those which result in higher yields on existing cropland and improved nutrition and net incomes of smallholder households, while reducing the negative environmental impacts and improving the management of natural resources, particularly soil and water. The project will provide targeted support to farmers to increase the productivity of their farms, while supporting access to small-scale irrigation and improving the efficiency of existing irrigation schemes, both of which can contribute to significantly increasing the resilience of the production systems. • The business and market development pathway focuses on building inclusive and durable market linkages through which strong and self-reliant cooperatives can sell increased volumes of produce. Many successful cooperatives supported by MINAGRI are now capable of exploring and consolidating market outlets for their produce at well-negotiated prices. This project will continue to accompany those cooperatives which have not yet reached the required level of maturity to develop this market development function. Efforts will be made to strengthen the role of cooperatives in business and market development. To build successful market linkages, cooperatives need to be able to produce consistent and good quality products. Investments to improve post-harvest processes and value addition will be made, while at the same time, the SACCOs will be supported to be able to provide finance to the cooperatives undertake viable investments. D. Project Description 24. The project will focus on consolidating and expanding the results obtained under the World Bank- funded projects; LWH and the RSSP3, and other selected MINAGRI-developed schemes. These operations demonstrated that the sustainability of the outcomes achieved depend, to a large degree, on the robustness and strength of the producers’ organizations, their entrepreneurial skills and their negotiation capacity with commodity buyers, other value chain actors, and their entrepreneurial capacity. The project will therefore continue the capacity-building activities of the farmers’ organizations (water users’ associations [WUAs], self-help groups [SHGs], cooperatives) established under these projects, to support them to further increase their productivity, strengthen their organizational and management capabilities, and help them link better to the markets to create additional livelihood opportunities. The project will also further scale-up efforts on nutrition-sensitive and climate-resilient agriculture from the previous projects. 25. The project will identify selected value chains to focus its efforts and to consolidate the results from the LWH and RSSP3, while ensuring sustainable impact through market-driven approaches. The project will focus on the following value chains: (a) vegetables and fruits for the domestic, regional, and international markets; (b) maize for domestic (and regional) markets; (c) Irish potato for domestic and regional markets; and (d) beans for domestic markets. The selection of the value chains was based on the following criteria: (a) market and growth potential (unmet demand, potential for productivity gains, and value addition); (b) relevance and development impact (nutrition improvement, opportunities for on- and off-farm employment, and income- generation potential); and (c) considering strategic factors and feasibility for change (national priority crops and potential impact of the project). 26. The project will be implemented in the following selected, existing LWH and RSSP3 project areas: Jun 08, 2018 Page 10 of 27 The World Bank Sustainable Agricultural Intensification and Food Security Project (P164520) Muyanza, Rwamagana-34, Karongi-12, Karongi-13, Kayonza-4, Nyanza-23, Gatsibo-8, and Nyabihu. These sites are in eight districts (Rulindo, Rwamagana, Karongi, Rutsiro, Kayonza, Nyanza, Gatsibo, and Nyabihu). The list may expand during the implementation as needed by the GoR. 27. These sites were selected using the following criteria: (a) food security and nutrition needs, (b) market potential and access, (c) cooperative/groups readiness, (d) agronomic suitability and potential for productivity gains, (e) likelihood that the combination of three project components can have an integrated impact, and (f) overlap with the World Bank-funded Stunting Prevention and Reduction Project. 28. The project has four components: Component 1 - Institutional Strengthening, Agriculture Productivity Enhancement, and Nutrition Improvement; Component 2 - Irrigation and Water Use Efficiency; Component 3 - Market Linkages, Value Addition, and Access to Finance; and Component 4 - Project Management and Technical Assistance. Component 1: Institutional Strengthening, Agriculture Productivity Enhancement, and Nutrition Improvement (US$7.7 million) 29. The objective of this component is to strengthen selected farmer organizations for improved agricultural productivity and healthier household nutrition. The project will proactively engage youth and women. Specifically, the project will work closely with identified youth groups to serve as service providers and support farmers to shift from subsistence agriculture to commercial agriculture. The Food and Agriculture Organization of the United Nations (FAO) will work closely with the project and provide technical assistance (TA) and support to the component, implementing the FFS and farming as business (FAB) approach. The component has three subcomponents. Subcomponent 1.1: Strengthening farmer organizations 30. This subcomponent will build on and further strengthen existing farmer organizations formed under the World Bank funded LWH and RSSP3 to help them transform into dynamic, successful, climate-smart, and sustainable farming businesses with productive linkages and access to agricultural markets. 31. The project will provide demand driven organizational development, climate-smart FAB, and entrepreneurial training to farmer groups. There will be a special emphasis on business planning, CSA practices and technologies, inventory management and stock checking, understanding input cost and pricing, quality control, financial planning, business audits, accounting and bookkeeping, market analysis, buying and selling in the market, and dealing with middlemen, traders, retailers, and wholesalers. 32. Farmer organizations created by the LWH and RSSP3 Projects are at different levels of maturity. Some newly created organizations still need support to strengthen their physical capital and increase their competitiveness, while the more mature cooperatives that have already benefited from previous investments in post-harvest infrastructure will be supported to plan necessary Jun 08, 2018 Page 11 of 27 The World Bank Sustainable Agricultural Intensification and Food Security Project (P164520) investments with their own capital. Because of these varying levels of organizational maturity, farmers organizations would benefit from exchange visits and experience and knowledge-sharing events across groups within and outside the country. The project will also seek for opportunities to involve the more mature organizations in the support of the younger organizations. 33. The project will also enhance capacity and skills of public sector extension agents by providing support to farmers to transform their farms into successful market-leading farming businesses. Local extension experts (youth and women) identified by farmer groups will be trained to provide fee-based extension services at the local level. The project will introduce ICT-enabled learning and knowledge exchange to strengthen farmer organizations and extension services. Subcomponent 1.2: Agricultural productivity enhancements 34. Key to achieving agriculture transformation is raising farm productivity levels with due consideration to CSA. The subcomponent will support interventions aimed at sustaining and further increasing productivity and profitability of selected crops. 35. Under this subcomponent, the project will carry out the analysis of five selected value chains on a need basis for a deeper understanding of productivity constraints, potential, and opportunities. Limitations and barriers will be addressed, and the untapped potential harnessed to the fullest with due respect to climate-smart practices. The interventions will include the promotion of improved climate-sensitive agricultural inputs, upgraded farm management practices, farm mechanization and technology, and so on. Subcomponent 1.3: Improving nutrition outcomes at household level 36. This subcomponent aims to improve nutritional outcomes at the household level in the project areas by increasing access to healthy and diversified foods and promoting good practices for improving nutrition. 37. A healthy and diversified diet will be promoted through (a) increasing the availability of safe and diverse vegetables and fruits locally, including bio-fortified foods such as iron-fortified beans and orange-fleshed sweet potatoes with Vitamin A, through the promotion and upgrading of existing kitchen gardens and village gardens; (b) ensuring availability of animal proteins for household consumption through backyard poultry; (c) improving the year-round availability of nutrient-rich foods at the household level by encouraging the processing and conservation of locally produced foods (through special groups); and (d) increasing the availability of safe, affordable, and nutrient- rich food items through the selection and promotion of nutrition-sensitive value chains. 38. Promotion of good practices for improved nutrition will also be done through nutrition education interventions, including Behavior Change Communication (BCC) for improved nutrition, social marketing campaigns through the media including radio programs, ICT messaging, and healthy cooking menu/demo meals. 39. These interventions will be implemented in close collaboration with the World Bank-funded Stunting Prevention and Reduction Project, which was approved in FY18, and other Government initiatives. Identified areas of collaboration include (a) the use of the nutrition education materials Jun 08, 2018 Page 12 of 27 The World Bank Sustainable Agricultural Intensification and Food Security Project (P164520) developed by the stunting project, in the extension messaging; and (b) in the districts where the two projects are overlapping (Karongi, Kayonza, and Nyabihu), the Sustainable Agriculture Intensification and Food Security Project (SAIP) will be able to supply nutritious foods to the beneficiaries of the stunting project, which will use the Early Child Development Centers (ECD centers) which will procure nutritious food from different sources including the SAIP producers groups. Component 2: Irrigation and Water Use Efficiency (US$7.2 million) 40. The objective of this component is to promote technology and best practice for increased availability and efficient use of water for irrigation to increase crop productivity and increase farmers resilience to climate volatility. This component will be implemented in two subcomponents. Subcomponent 2.1: Improved efficiency and expansion of existing irrigation schemes 41. Hillside irrigation constructed by the LWH is designed with an irrigation efficiency ranging from 60 percent to 65 percent. By maximizing the irrigation efficiency using other existing techniques of irrigation, efficiency of up to 75 percent or more can be achieved. The LWH sites were designed so that irrigation can be done without additional equipment using unlined open irrigation ditches on the top of terraces, furrows, and big hose pipes. Farmers have successfully adopted these approaches to irrigate different types of crops. However, because the system allows for the integration of other irrigation technology, greater irrigation efficiency can be achieved by using water-efficient irrigation technologies. 42. This project will build on the existing infrastructure by providing matching grants for small-scale irrigation equipment to the farmers such as sprinkles, drip, gated-pipes, or hose-furrow technologies and creating awareness on how to use that equipment effectively and efficiently. Reduction in the water use because of more efficient irrigation will allow expansion and improvements to the existing schemes by 1,500 ha. 43. To promote the development of affordable and sustainable irrigation technologies, the GoR introduced the subsidized famers owned Small-Scale Irrigation Technology Development Program (SSIT) for improved productivity and commercial farming. The project will contribute to this program by providing matching grants and a support package (maintenance and business plan development) for farmers to access small-scale irrigation equipment. It is estimated that through this support, an additional 1,000 ha of land will benefit from using small-scale irrigation infrastructures and techniques. 44. The access to small-scale irrigation equipment through the project’s support will target primarily farmers in existing hillside sites without irrigation schemes within the selected project sites. However, small-scale irrigation activity will also be implemented outside the selected sites where support will be targeted for specific value chains (especially horticulture) and to youth and/or women groups. Jun 08, 2018 Page 13 of 27 The World Bank Sustainable Agricultural Intensification and Food Security Project (P164520) Subcomponent 2.2: Strengthening irrigation capacity 45. The introduction of more efficient methods of irrigation will require training and TA to farmers during installation and operation. This will go along with the social mobilization and creation of awareness of the benefits of different irrigation systems. This subcomponent will fund on-farm training in the handling, assembling, and proper use of different irrigation equipment to improve adaptation rates and improve irrigation practices by farmers. 46. This subcomponent will also finance targeted capacity building of WUAs to strengthen their capacity to make them effective organizations capable of managing the irrigation systems they are assigned to manage. Capacity building of the WUAs and the farmer members will allow for the sustainable operations and maintenance (O&M) activities and management of these irrigation schemes. This will include training on irrigation water management, to enable them to collect and use water fees more effectively for the operation and maintenance of the targeted irrigated schemes. In addition, they will receive training to strengthen their management skills such as planning, organizational management, infrastructure O&M, O&M costing and water pricing, financial planning, accounting, and bookkeeping. Component 3: Market Linkages and Value Addition Investment Support (US$7.3 million) 47. The objective of this component is to enhance market linkages and value addition by strengthening the capacity of farmers’ organizations and other value chain actors and improving their access to finance. The project will consolidate and scale-up the efforts undertaken by the LWH and RSSP3, strengthening the development of sustainable market linkages and value addition, through increased performance and commercialization of selected value chains. 48. This component, will work in tandem with Component 1, working with the farmer organizations, to improve their market orientation, and connecting farmers to markets, channeling the productivity gains made in Components 1 and 2. Subcomponent 3.1: Capacity building to foster market linkages 49. The objective of this subcomponent is to strengthen the capacity of farmer organizations and value chain actors to connect to both domestic, regional, and in some cases international markets, to be able to more effectively respond to market requirements and needs. It will build on activities initiated under the LWH and RSSP3, on strengthening the market linkages and value addition potential for selected value chains. This subcomponent will also support the capacity development of farmers to access finance to meet their growing business needs. 50. The project will first provide capacity building in post-harvest handling in priority value chains to minimize losses and reduce perishability. Secondly, the project will support farmer groups in capturing value, by promoting quality enhancing and pre-processing activities, such as cleaning, grading, sorting, and packaging. 51. Following the above pre-processing activities, the project will support selected cooperatives, farmers and agro-processors to obtain quality certification, to ease access to domestic and export markets. These will include targeted efforts to improve food safety, such as the elimination of Jun 08, 2018 Page 14 of 27 The World Bank Sustainable Agricultural Intensification and Food Security Project (P164520) aflatoxin contamination in maize and help agro-processers supported by the project in obtaining the Quality Standard Mark (S-Mark) for processed goods, from the Rwanda Standards Board (RSB) and other quality standards to allow them access premium markets both local or international. The project will also provide matching grants for packaging and processing equipment (under Subcomponent 3.2) and technology, including preservation, to reduce food loss and preserve nutrition value of produces. These interventions build on Component 1, skills development and business training, of youth and women in cooperatives and/or individual entrepreneurs, already managing or wanting to start up a business. 52. Limited access to agricultural finance products constrains subsistence farmers’ ability to take measured risks to increase productivity and/or profitability. To support farmers’ capacity to access finance, the project will build on the activities and interventions of the LWH and focus on the identification of financial services and products required by farmer organizations, youth, and women groups. The project will continue to support financial literacy of farmers, provision of financial skills to cooperatives for example, business planning and financial management (FM), enhancement of the culture of savings, and use of credit and better portfolio management of selected Savings and Credit Cooperatives (SACCOs). 53. The project will fund workshops and training for financial institutions and intermediaries to enhance their understanding of the agriculture sector, build awareness to the market/business potential (that is, business case for investing/supporting the sector), and utilization of SACCOs for agent banking. The project will reach out to and collaborate with existing Government ministries/agencies that are tasked with supporting the capacity building of SACCOs and microfinance institutions (MFIs) to develop financial products that better meets the needs of farmers, de-risk their investments, and enhance their access to timely and appropriate financial services. 54. The project will support farmer organizations, entrepreneurs, and micro and small enterprises in developing business development plans. These business plans will form the basis for the grant agreements and could also be utilized by beneficiaries to access finance through MFIs or banks, especially for more mature farmers organizations. 55. Complementing these, the project staff, together with farmers groups, will facilitate dialogue between farmers groups and buyers/processors, to establish market linkages to intermediary and end markets. This will be done through organization of sellers’ forum and facilitation of contracting modalities, between farmers/farmers organizations, buyers/processors, and other relevant intermediaries. Subcomponent 3.2: Investment support to market linkages 56. The objective of this subcomponent is to support the provision of post-harvest facilities and equipment for improved market linkages. Through the value chain approach, the project will bundle its interventions along the value chains ensuring that market infrastructure and equipment are demand-driven and market-oriented. 57. To complement the interventions in Subcomponent 3.1, the project will finance through matching Jun 08, 2018 Page 15 of 27 The World Bank Sustainable Agricultural Intensification and Food Security Project (P164520) grants post-harvest, marketing and processing facilities to the benefit of those cooperatives, which are not yet mature enough to be able to fully self-finance required facilities’ needs, while the project will support more mature organization to plan necessary investments with their own capital. The project will also provide capacity building for O&M activities and management of those facilities. 58. The project will finance the construction of these drying shelters, drying grounds, collection centers, and storage and cold storage facilities, through grant agreements, and wherever possible, will be co-financed through private capital, based on agreed joint business plans. In that case, the level of private capital co-financing will be determined in the joint business plans. Financing these facilities will be done based on a needs and suitability assessments on necessary facilities, and feasibilities studies will inform the location and designs of these facilities. Rehabilitation to allow multiple use of existing facilities will be prioritized. 59. With regard to post-harvest handling and quality equipment, the project will provide matching grants to finance equipment, such as threshers, weighing balances, dryers, including solar bubble dryers, moisture meters, hermetic bags, aflatoxin kits, and relevant processing equipment. 60. The project will train farmer groups to manage these facilities and equipment to ensure their profitability and sustainability. In addition, the project will facilitate the quality control and certification of the above infrastructure and equipment according to relevant standards and requirements. Component 4: Project Management and Technical Assistance (US$4.13 million) Subcomponent 4.1: Project management (US $ 2.63 million) 61. This component will support all aspects of project management including (a) management and coordination, (b) monitoring and evaluation (M&E), (c) communication and knowledge sharing, (d) TA, and (e) a grievance redress system (GRS). Specifically, the project will finance the operating costs for the project implementation at the national and district levels led by the SPIU, and the establishment of the project M&E system and communication and knowledge management system. Subcomponent 4.2: Technical assistance (US $ 1.5 million) 62. The GoR has identified the FAO as the main provider of TA to the project with an allocation of US$1.5 million. This component will fund TA from the FAO to improve project performance, incorporate best practices, and document lessons learned. Three specific technical areas (a) support to the further development of the extension services, (b) nutrition, and (c) implementation of the farmer-led small-scale irrigation technologies have been identified for the FAO TA based on their comparative advantage and experience in Rwanda. The TA activities are designed to strengthen the capacities of the targeted beneficiaries of the project and to enhance the effectiveness of the project interventions. The TA will emphasize knowledge management and support coordination among stakeholders. 63. Farmer organizations will be strengthened to improve their FAB skills to help farmers build Jun 08, 2018 Page 16 of 27 The World Bank Sustainable Agricultural Intensification and Food Security Project (P164520) knowledge and skills to make their farm operations more profitable. This entails support to organizational management, business planning, and making market-led production decisions. Specific emphasis will be given to building women and youth leadership skills. An FFS approach will be adopted, working within the framework of MINAGRI extension system (Twigire Muhinzi). Capacity development will target cooperatives, but can be extended to include individual farmers and agribusiness small and medium enterprises (SMEs), which can demonstrate externalities. The FAO will provide the technical know-how for the FFS/FAB and Training of Trainers (ToT) costs, with the project covering the rollout to farmer cooperatives (including WUAs). The relevant technical guidelines and ToT manuals will be contextualized for Rwanda and will be available in Kinyarwanda. 64. The TA from the FAO will also support the design of the value chain analyses, which will be conducted by the project. This analysis will include market exploration, contract farming models (including public-private partnerships [PPPs]), and strengthen contract negotiations. Building farmers’ business and investment planning skills, through the practical application of Rural Invest, under Subcomponents 1.1 and 3.1, will also ease the implementation of the matching grants modalities of physical assets and small-scale irrigation as proposed by the project. 65. TA implementation of the interventions related to nutrition improvement at the household level will be done through the FAO providing the technical know-how for the improvement and scaling- up of improved kitchen gardens models, introducing backyard poultry, and adopting new varieties of nutrient-rich bio-fortified crops, and promoting new ways of preserving and processing nutrition dense food. The TA will cover the ToT training costs, while the project will cover the rollout of training for farmers. Building on the ongoing efforts, the TA will support the practical application of food-based dietary guidelines (FBDGs) when they are available, using a social and behavior change communication (SBCC) approach, promoting nutrition education and creating menus based on the locally available seasonal food items. Project management support will be provided for implementation and monitoring of nutrition outcomes at the household level. 66. The implementation of the farmer-led small-scale irrigation component will be supported through TA interventions that will build on the ongoing work in assessing the feasibility and suitability of the small-scale irrigation kits for different agro-ecological sites and by providing capacity building on using the technologies and O&M. The capacity development will include the transfer of know- how on land husbandry under irrigated production using the FFS approach. The TA will cover the ToT training costs, while the project will cover the rollout of training. E. Implementation Institutional and Implementation Arrangements 67. Overall implementation of the project will be coordinated by the RAB which will serve as the Project Implementing Agency. The RAB is a non-commercial public institution with administrative and financial autonomy under the supervision of MINAGRI. It has a general mission of developing agriculture and animal resources through research, agricultural and animal resources extension to increase agricultural and animal productivity. The RAB has a national network of research stations, projects, and staff that focus on improved production and yields of food staple crops. Agronomists Jun 08, 2018 Page 17 of 27 The World Bank Sustainable Agricultural Intensification and Food Security Project (P164520) based in four zones corresponding to the four provinces are responsible for expanding farmers’ access to enhanced extension services. 68. The existing SPIU managing the World Bank projects will implement the project. The SPIU has a strong team (technical, financial, procurement, safeguards, and M&E) which has gained experience and obtained excellent results in the last decade. The SPIU will receive strategic guidance from a Project Steering Committee (PSC) made up of several stakeholders including various ministries and other relevant agencies, representatives of farmers organization, and so on. The PSC will provide policy guidance and support the alignment between project activities and the respective national sectoral plans and projects of the Government. 69. This project will be well-integrated and coordinated within the portfolio of national agricultural projects financed by the World Bank. Specifically, the proposed activities on land husbandry under Component 1 will build on and use the expertise gained by Rwanda in land husbandry and soil conservation techniques through the LWH and RSSP3, aimed at increasing agriculture production and farmers’ participation in agricultural value chains. 70. The proposed project will be integrated with the ECAATP (2019–2024), which will be managed under the same SPIU, and the Transformation of Agriculture Sector Program (IV) PforR2 (2018 –2021). The third component of this project will be implemented in close collaboration with PforR2, focused on increasing private sector investment and improving the competitiveness of key agriculture value chains in Rwanda’s agriculture sector. This project will be able to disseminate CSA and NSA technologies developed under the ECAATP. It is also foreseen that the market access component of this regional project will create opportunities for this project beneficiaries accessing regional markets. . F. Project location and Salient physical characteristics relevant to the safeguard analysis (if known) The proposed project aims at delivering on improving livelihoods, food and nutrition security through increased agricultural productivity, value addition and access to markets. The project will be implemented in the following selected existing LWH and RSSP3 project areas: Muyanza, Rwamagana-34, Karongi-12, Karongi-13, Kayonza-4, Nyanza-23, Gatsibo-8, and Nyabihu. These sites are in eight districts (Rulindo, Rwamagana, Karongi, Rutsiro, Kayonza, Nyanza, Gatsibo, and Nyabihu. The list of sites may expand during the implementation as needed by the Government of Rwanda, but will only be targeted on already developed area. The targeted implementation sites are characterized by cultivated marshlands and hillsides under intensive agriculture. None of these sites is close to a protected area. The project which proposes to build on the results of LWH & RSSP, will target existing and newly developed irrigation schemes as well their catchment areas. In addition to other activities the project aims at: (i) Adopting and scaling up successful production practices such as utilization of improved seeds, integrated pest management; soil and water conservation approaches and technologies; (ii) Reducing post-harvest losses and value addition through investment in post-harvest and pre-processing facilities; (iii) increasing agricultural productivity in line with LWH and RSSP results; and (iv) increasing access to irrigation through improving water efficiency of irrigation schemes developed under LWH and support access to small scale irrigation under the government Jun 08, 2018 Page 18 of 27 The World Bank Sustainable Agricultural Intensification and Food Security Project (P164520) farmer-led small-scale irrigation program. The project will not build new irrigation schemes, but increase access to irrigation will be done through more water efficient technologies. G. Environmental and Social Safeguards Specialists on the Team George Bob Nkulanga, Social Safeguards Specialist Emmanuel Muligirwa, Environmental Safeguards Specialist SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) The project will support increased agricultural production through promotion of improved farming practices and scale-up of small scale irrigation schemes through promotion of water efficient technologies for irrigation in schemes developed by LWH, and support to post harvest handling and processing facilities. These activities will potentially impact the environment. The environmental impacts will vary in scale or magnitude and will be site specific; and manage through site specific Environmental Management Environmental Assessment OP/BP 4.01 Yes Plans (EMP). In the absence of sufficient information on the actual activities to be implemented in selected sites, an Environmental and Social Management Framework (ESMF) has been prepared and disclosed. The ESMF provides guidance on environmental and social safeguards compliance during project implementation. As the project will include some activities related to value chain development including processing under component 3, the ESMF also include the WB guidelines for Agribusiness and Food Production. Performance Standards for Private Sector No Activities OP/BP 4.03 The project targets LWH and RSSP implementation Natural Habitats OP/BP 4.04 Yes sites with activities involving agricultural intensification in marshlands and hillsides. This Jun 08, 2018 Page 19 of 27 The World Bank Sustainable Agricultural Intensification and Food Security Project (P164520) policy is has been triggered by precaution in case of expanding to new sites is proposed by the government, where for example expansion of irrigation in an existing irrigation schemes may potentially contribute to degradation of natural habitats such as wetlands downstream of the command areas. These risks will be assessed and managed through implementation of the ESMF. The policy is not triggered.The target project areas are under agricultural production and would not be Forests OP/BP 4.36 No affecting any forests, forest health and forest- dependent communities. The project aims at increasing agricultural production. This is likely to lead to increased pesticide use. A Pest Management Plan (PMP) has Pest Management OP 4.09 Yes been prepared and disclosed to promote Integrated Pest Management (IPM) during project implementation. Construction works for postharvest handling facilities under component 3 may lead to Physical Cultural Resources OP/BP 4.11 Yes opportunistic finds of physical cultural resources. The ESMF provides “Chance Finds� procedures. The policy is not triggered.The sites of implementation are already covered by the LWH and Indigenous Peoples OP/BP 4.10 No RSSP3 projects, and also areas developed by other projects which were found not to be hosting indigenous people. The project could acquire more land for expanded irrigation under component 2 and postharvest handling facilities under component 3. Since the specific sites of these likelihoods will be identified during implementation based on farmers needs, Involuntary Resettlement OP/BP 4.12 Yes Resettlement Policy Framework (RPF) has been prepared and disclosed. Wherever appropriate and as required, site specific RAPs will be prepared during implementation. Though no new dam will be constructed, and the project activities do not involve the construction or rehabilitation of any dams, the irrigation and water efficiency activities planned under the project rely Safety of Dams OP/BP 4.37 Yes on the on existing dams constructed under the LWH project, namely Kayonza (9.5 m high and 1,600,000 m3 volume) , Rwamagana (14 m high and 1,500,000 m3 volume), Nyanza (19 m high and 1,820,000 m3 Jun 08, 2018 Page 20 of 27 The World Bank Sustainable Agricultural Intensification and Food Security Project (P164520) volume) and Muyanza (26m and 2,240,000m3 volume), out of which Nyanza and Muyanza are large dams. These dams have Bank cleared dam safety plans which have been implemented by the project and monitored regularly through the project safeguards reporting. The project will continue to follow and monitor the effectiveness of these dam safety plans. The project targeted sites under LWH and RSSP are located in tributaries of the Nile and Congo, international rivers of transboundary significance. . The project has applied and received an exception to notification of other riparians of the proposed project. The justification for an “exception� is that Projects on International Waterways the project will be supporting improvements on Yes OP/BP 7.50 ongoing irrigations schemes; and the estimated extractions from the Nile or Congo Basins are extremely minimal and will not adversely affect the quality and flow of water to other riparians.The estimated abstraction as percentage of mean annual discharges for the Nile and Congo basin respectively are 0.155% & 0.028%. None of the investments or project financed Projects in Disputed Areas OP/BP 7.60 No activities will be located in disputed areas so this policy is not triggered. 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 project aims at increasing agricultural production through improved agriculture technologies, efficient irrigation and small scale irrigation technologies and reducing post-harvest loses and value addition through the development of post-harvest handling facilities. The project will be implemented in RSSP3 and LWH projects sites or other developed sites and are likely to have low to moderate risks on safeguard issues by different implementation support missions. These activities could have potential negative impacts the environment. Potential negative impacts of the project include impacts resulting from agriculture intensification and increase productivity planned activities such as soil erosion and loss of vegetation covers during land husbandry activities, loss of top soil and reduction of soil fertility leading to loss of fertile soils, inappropriate use of agriculture inputs such as pesticides, water quality deterioration, sedimentation and siltation. Also in case of construction of facilities, loss of land for these facilities. However these impacts are anticipated to be site specific; of low to moderate significance; and manageable through site specific Jun 08, 2018 Page 21 of 27 The World Bank Sustainable Agricultural Intensification and Food Security Project (P164520) Environmental Management Plans (EMP). Also as the project areas of implementation are existing sites with activities involving already agricultural intensification in marshlands and hillsides, the project doesn't have any potential large scale, significant and/or irreversible impacts. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: The project is not anticipated to have indirect or long term significantly adverse impacts and as the project sites are already developed under the LWH and RSSP projects are not close to any protected area. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. As the project area of implementation are already agricultural sites involving agriculture intensification, the project has not considered alternatives to avoid or minimize adverse impacts. However implementation will seek to minimize potential adverse impacts on environment. 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 borrower has prepared and disclosed the following instruments in compliance with the triggered safeguards policies: (i) Environmental and Social Management Framework (ESMF); (ii) Integrated Pest Management Plan (IPMP); (iv)Resettlement Policy Framework (RPF); and the task team has requested and received a notification exception in accordance to the requirements of OP/BP 7.50. The borrower's project implementation unit has a team of staff with sufficient capacity and experience from managing other projects, to implement measures provided in the safeguards documents. The safeguard team has been implementing and monitoring safeguards for the LWH, RSSP3 project closing in June and October, 2018 and a category A transport project transferred to another PIU. It is estimated that the current team will be able to support the safeguards requirement for the two projects to be managed by the SPIU. The SPIU has also allocated budget in the project budget to ensure safeguard related activities are well implemented and monitored. The borrower, under RSSP3 and LWH has Grievance Redress Committees (GRC) on each project site to handle grievances that arise during the project implementation. These GRCs have been trained on how to handle grievances from the community and are expected to continue doing so under this project. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. SAIP will be implemented by Rwanda Agriculture and Animal Resources Board (RAB) through its SPIU, under the Ministry of Agriculture and Animal Resources (MINAGRI). The key stakeholder in the project implementation include the Ministry of land and forestry (MINILAF), Ministry of Local Government (MINALOC), Rwanda Land Management and Use Authority (RLMUA), participating Districts, and local communities. The key stakeholder’s consultation process started during the preparation of the RPF and the ESMF, between February and March 2018 and this has been well documented in the RPF and ESMF. This was done through a series of stakeholder’s consultation meetings. The stakeholder’s engagement process is planned to continue throughout the project implementation cycle. The project will involve various stakeholder consultation and engagement mechanisms that include the following; i) community sensitization and awareness campaigns, ii) community outreach activities, iii) community dialogues to support formation and strengthening of SHGs especially in the irrigation and post-harvest infrastructure that are newly developed. A detailed Stakeholder Engagement Plan (SEP) will be prepared by the Jun 08, 2018 Page 22 of 27 The World Bank Sustainable Agricultural Intensification and Food Security Project (P164520) project to ensure a continuous engagement of all stakeholders throughout the implementation. The beneficiary feedback on the service delivery will be annually received through an independent survey on community and beneficiary scored cards. The project result framework has included specific citizen engagement indicators to be monitored. The Resettlement Policy Framework (RPF) has been disclosed by RAB in the local newspapers and copies of the RPF are available at RAB/PIU office, MINAGRI library and Project website. RAB/SPIU will also ensure that copies of the RPF are available to the local government’s agencies (RLMUA), participating Districts and all project stakeholders. All RAPs to be prepared under SAIP will be disclosed in the local newspapers and a summary of the RAP translated in the local language and will made available to the Subproject coordination office and participating Districts and accessible to the local community. RAB will also ensure that copies are available to the local government’s agencies (RLMUA), Districts and all key stakeholders. The bank has also disclosed the RPF and will disclose the subproject RAPs electronically through the bank external website. B. Disclosure Requirements OPS_EA_DISCLOSURE_TABLE Environmental Assessment/Audit/Management Plan/Other For category A projects, date of Date of receipt by the Bank Date of submission for disclosure distributing the Executive Summary of the EA to the Executive Directors 24-May-2018 03-Jun-2018 "In country" Disclosure Rwanda 08-Jun-2018 Comments OPS_RA_D ISCLOSURE_T ABLE Resettlement Action Plan/Framework/Policy Process Date of receipt by the Bank Date of submission for disclosure 15-May-2018 23-May-2018 "In country" Disclosure Rwanda 29-May-2018 Comments Jun 08, 2018 Page 23 of 27 The World Bank Sustainable Agricultural Intensification and Food Security Project (P164520) OPS_ PM_D ISCLOSURE_TA BLE Pest Management Plan Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of submission for disclosure Yes 02-May-2018 04-May-2018 "In country" Disclosure Rwanda 21-May-2018 Comments OPS_PM_ PCR_TABLE If the project triggers the Pest Management and/or Physical Cultural Resources policies, 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) OPS_EA_COMP_TABLE 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 Practice Manager (PM) review and approve the EA report? Yes Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes OPS_ NH_COM P_TA BLE OP/BP 4.04 - Natural Habitats Would the project result in any significant conversion or degradation of critical natural habitats? No If the project would result in significant conversion or degradation of other (non-critical) natural habitats, does the project include mitigation measures acceptable to the Bank? No OPS_ PM_COM P_TA BLE OP 4.09 - Pest Management Jun 08, 2018 Page 24 of 27 The World Bank Sustainable Agricultural Intensification and Food Security Project (P164520) 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 PM? Are PMP requirements included in project design? If yes, does the project team include a Pest Management Specialist? Yes OPS_ PCR_COM P_TA BLE 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 adverse impacts on cultural property? Yes OPS_IR_ COMP_TA BLE OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework (as appropriate) been prepared? Yes If yes, then did the Regional unit responsible for safeguards or Practice Manager review the plan? Yes OPS_SD _COMP_ TABLE OP/BP 4.37 - Safety of Dams Have dam safety plans been prepared? Yes Have the TORs as well as composition for the independent Panel of Experts (POE) been reviewed and approved by the Bank? NA Has an Emergency Preparedness Plan (EPP) been prepared and arrangements been made for public awareness and training? NA OPS_ PIW_COMP_ TABLE OP 7.50 - Projects on International Waterways Have the other riparians been notified of the project? No If the project falls under one of the exceptions to the notification requirement, has this been cleared with the Legal Department, and the memo to the RVP prepared and sent? Yes Has the RVP approved such an exception? Yes OPS_ PDI_ COMP_TA BLE Jun 08, 2018 Page 25 of 27 The World Bank Sustainable Agricultural Intensification and Food Security Project (P164520) The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank for disclosure? Yes Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? Yes All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? Yes Have costs related to safeguard policy measures been included in the project cost? Yes Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? Yes Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? Yes CONTACT POINT World Bank Winston Dawes Senior Agriculture Economist Aimee Marie Ange Mpambara Agricultural Spec. Borrower/Client/Recipient Republic of Rwanda Implementing Agencies Jun 08, 2018 Page 26 of 28 The World Bank Sustainable Agricultural Intensification and Food Security Project (P164520) Rwanda Agriculture and Animal Resources Board (RAB) Patrick Karangwa Director General patrick.karangwa@rab.gov.rw FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects APPROVAL Winston Dawes Task Team Leader(s): Aimee Marie Ange Mpambara Approved By Safeguards Advisor: Nathalie S. Munzberg 25-Jun-2018 Practice Manager/Manager: Dina Umali-Deininger 26-Jun-2018 Country Director: Yasser El-Gammal 28-Jun-2018 Jun 08, 2018 Page 27 of 27