$
Report No: RES00019
RESTRUCTURING PAPER
ON A
PROPOSED PROJECT RESTRUCTURING
OF
Smallholder Agricultural Transformation Project
APPROVED ON 16-Jun-2022
TO
Republic of Angola
Agriculture and Food
Eastern And Southern Africa
Regional Vice President: Victoria Kwakwa
Regional Director: Iain G. Shuker
Country Director: Albert G. Zeufack
Practice Manager: Shobha Shetty
Task Team Leader(s): Izabela Leao, Marco Antonio Aguero
The World Bank
Smallholder Agricultural Transformation Project (P177305)
ABBREVIATIONS AND ACRONYMS
ACBP Africa Climate Business Plan
AUAs Water User Associations (Associações de Usuários de Água)
CERC Contingent Emergency Response Component
COVID-19 Coronavirus disease 2019
CPF Country Partnership Framework
CPS Country Partnership Strategy
CSA climate-smart agriculture
DA Designated Account
DPA Provincial Directorate of Agriculture (Direcção Provincial da Agricultura)
EDA Agricultural Development Station
(Estação de Desenvolvimento Agrário)
EFA economic and financial analysis
EIRR Economic Internal Rate of Return
EPIP Provincial Project Implementation Team (Equipe de Implementação do Projeto
Provincial)
ESF Environmental and Social Framework
ESS Environmental and Social Standards
FAO Food and Agriculture Organization of the United Nations
FFS Farmer Field School
FLID Farmer-led Irrigation Development
FM financial management
GALS Gender Action Learning System
GBV gender-based violence
GDP gross domestic product
GEPE Statistics Study and Planning Office(Gabinete de Estudos e Planeamento
Estatísticos)
GHG greenhouse gas
GRID Green, Resilient and Inclusive Development
ha hectare
HCP High-carbon Prices
IDA Agrarian Development Institute (Instituto de Desenvolvimento Agrário)
IDF Forest Development Institute (Instituto de Desenvolvimento Florestal)
IFAD International Fund for Agricultural Development
IFC International Finance Corporation
IFR Interim unaudited Financial Report
IIA Agronomic Research Institute(Instituto de Pesquisa Agronômica)
IIV Veterinary Research Institute (Instituto de Pesquisa Veterinária)
IMF International Monetary Fund
INCA National Institute for Coffee (Instituto Nacional do Café)
INE National Institute of Statistics (Instituto Nacional de Estatísticas)
IP/SSAHUTL Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local
Communities
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The World Bank
Smallholder Agricultural Transformation Project (P177305)
ISV National Veterinary Service (Serviço Veterinário Nacional)
LCP Low-Carbon Prices
M&E monitoring and evaluation
MINAGRIP Ministry of Agriculture and Fisheries (Ministério da Agricultura e Pescas)
MOSAP II Smallholder Agriculture Development and Commercialization Project
MOSAP III Angola Smallholder Agricultural Transformation Project
mt metric ton
NDC Nationally Determined Contribution
NDP National Development Plan
NGO nongovernmental organization
NPV net present value
NSmartAg Nutrition Smart Agriculture
O&M operation and maintenance
PAD project appraisal document
PaTec technological packages (Pacotes Tecnológicos)
PDAC Commercial Agriculture Development Project
PDMPSA Medium-Term Agriculture Sector Development Plan
PDO Project Development Objective
PIU Project Implementation Unit
PLR Performance and Learning Review
POM Project Operations Manual
PSC Project Steering Committee
RAPP Agro-Livestock and Fisheries Census (Censo Agrocuário e Pesca)
RECLIMA Climate Resilience and Water Security in Angola
RNIA National Registry for Animal Identification
(Registo Nacional de Identificação Animal)
RNPA National Farmers’ Registry (Registo Nacional do Produtor Agropecuário)
SCD Systematic Country Diagnostic
SEA/SH Sexual Exploitation and Abuse and Sexual Harassment
SEGI Farmer Incentive Management Information System (Sistema Electrónico de Gestão
dos Incentivos)
SENSE National Seed Service (Serviço Nacional de Sementes)
SMEs Small and Medium Enterprises
SNIEA National Agricultural Statistical System (Sistema Nacional Integrado de Estatísticas
Agrárias)
SSA Sub-Saharan Africa
STEP Systematic Tracking of Exchanges in Procurement
TA technical assistance
ToC Theory of Change
ToR Terms of Reference
TSP technical service provider
VfM Value for Money
WASH water, sanitation, and hygiene
WSS water supply and sanitation
WUA water users’ association
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The World Bank
Smallholder Agricultural Transformation Project (P177305)
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BASIC DATA
Product Information
Operation ID Operation Name
P177305 Smallholder Agricultural Transformation Project
Product/Financing Instrument Geographical Identifier
Investment Project Financing (IPF) Angola
Approval Date Current Closing Date
16-Jun-2022 28-Feb-2029
Environmental and Social Risk Classification (ESRC)
Substantial
Organizations
Borrower Responsible Agency
Republic of Angola Ministry of Agriculture and Fisheries
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OPERATION STATUS
Project Development Objective (DO)
Original Development Objective
To increase agricultural productivity and to promote climate resilience for smallholder farmers in selected areas.
Disbursement Summary (in USD million)
Source of Funds Net Commitment Disbursed Balance % Disbursed
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The World Bank
Smallholder Agricultural Transformation Project (P177305)
IBRD 300.00 18.12 281.88 6.04
IDA -- -- -- 0
Grants -- -- -- 0
Policy Waivers
Does this restructuring trigger the need for any policy
waiver(s)? No
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The World Bank
Smallholder Agricultural Transformation Project (P177305)
TABLE OF CONTENTS
I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING ........................................................................................1
II. DESCRIPTION OF PROPOSED CHANGES ....................................................................................................................1
III. PROPOSED CHANGES ................................................................................................................................................2
IV. DETAILED CHANGE(S) ...............................................................................................................................................3
The World Bank
Smallholder Agricultural Transformation Project (P177305)
I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING
1. Since the declaration of the project effectiveness (January 27, 2023) the World Bank (WB) team has
been working together with the Agrarian Development Institute (IDA) and the Project Implementation
Unit (PIU) to guarantee the conditionalities for the project implementation. However, the Project has
faced significant implementation challenges derived from simultaneous dismissal of key people,
including both the Director and Coordinator of the Project in August 2023. As a result, project planning,
and consequently, the day-to-day operational actions were idle during the transitional period. And,
although a new Director was appointed in August 2023, and presented to the WB in September 2023,
the project continues without coordination. The Project has faced continued and accumulated delays
to meet the deadlines of agreed actions in previous missions, consequently, there is a stagnation of
the real disbursement rate compared to estimates (which remains at 6 percent since June 2023).
2. Technical and fiduciary activities remain partially implemented, as well as the environmental and social
safeguards activities where, for more than nine months, the PIU remained without a Senior
Environmental and Social Specialists – positions which will be filled-in in May 2024. The absence of
these specialists has resulted in constraints in compliance with the environmental and social (A&S)
requirements applicable to the project and to the Environmental and Social Framework.
3. Findings from the recent supervision mission (January-March 2024) confirmed that project design
remains aligned and relevant with the efforts of the Government of the Republic of Angola aimed at
increasing food security levels and reducing poverty in rural areas, as well as at enhancing and
conferring rural communities with better agricultural practices so that family producers can move from
subsistence agriculture to commercial agriculture. However, given on-going implementation
challenges and accumulated delays, it was agreed during the mission to realistically adjust the project
activities and proceed with a partial cancellation of the loan in the amount of the US$46 million with
the aim of optimizing the results and indicators to be achieved. As a result, the new global loan amount
will be of US$254 million.
4. This restructuring will facilitate the achievement of the revised objectives without compromising the
quality and impact of the results. In other words, the Project will be preserving the main targets
unchanged, such as the number of Farmer Field Schools (ECAs) and direct beneficiaries of the Project.
5. As of April 2024, the project has a disbursement rate of 6 percent, out of a total disbursed amount of
US$18.1 million. The restructuring and partial cancellation will thus allow for an increase in the
disbursement rates with disbursement projections aiming at 18 percent by December 2024.
II. DESCRIPTION OF PROPOSED CHANGES
6. The scope of this restructuring is as follows:
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The World Bank
Smallholder Agricultural Transformation Project (P177305)
(i) In alignment with the research and development activity under subcomponent 1.2., strengthen the
budgetary provisions to technologies and practices that improve adaptation and mitigation to climate
change under subcomponent 2.1. through Technological Packages (PaTecs), based on strengthened
synergies and integration between research and adaptation to regional contexts. The allocated
resources to this activity are estimated at US$ 15 million.
(ii) Cancellation of the Matching-Grants (MGs) mechanism, original included under subcomponent 2.1.
(iii) Strengthen the budgetary provisions for the e-voucher mechanism under component 1 to favor small
producers graduated from ECAs with the delivery of a single e-voucher in a fixed value of US$ 1,200 to
each of the 112,500 beneficiaries, by re-allocating resources initially budgeted to the MGs mechanism.
The e-voucher will serve to subsidize the implementation of two PaTecs, one for agriculture and one
for livestock, thus favoring the integration of agriculture and livestock in project areas. Technical Field
Operators (OTCs) will accompany producers in choosing and implementing these PaTecs. The sub-
component 1.1. revised budget is now estimated at US$163 million (with US$ 113 million being re-
allocated from subcomponent 2.1.) and will be integrated into the total budget value of component 1
– now at US$183 million.
(iv) Adjustment of the Results Frameworks to reflect the changes described above, including the
adjustments of PDO indicators to reflect the cancelation of the Matching-Grants mechanism and, the
inclusion of the indicator "Millions of People with Strengthened Food and Nutrition Security," as part
of the retrofitting of Corporate Scorecard recently requested by the Senior Management. The
measurement of this indicator will be evaluated based on the outcomes derived from the capacity-
building and training activities conducted through the FFS. Under Component 1: Capacity Building and
Institutional Development activities, the FFS initiatives will bolster households’ agricultural production
capacities and improve their overall food and nutrition security. This approach aims to address both
the immediate and long-term needs of rural communities, thereby contributing to the sustainable
development of the agricultural sector. No changes are being introduced to the PDO. For more details
see the Results section below.
(v) Re-distribution of targets to compensate for historical delays, leaving final targets unchanged yet
adjusting the yearly targets to compensate for historic delays.
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Summary changes
III. PROPOSED CHANGES
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The World Bank
Smallholder Agricultural Transformation Project (P177305)
Operation Information Proposed Changes Operation Information Proposed Changes
Results Yes Loan Cancellations Yes
Conditions Yes Reallocations Yes
Disbursements Estimates Yes Implementation Schedule Yes
Components Yes Loan Closing Date Extension No
Development Objective No Financial Management No
Summary Description
No Procurement No
(Operation Abstract)
Legal Operational Policies No Institutional Arrangement No
MFD/PCE No
Risks No
Legal Covenants No
Implementation Modalities No
Disbursements Arrangements No
DDO No
Clients No
Appraisal Summary No
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IV. DETAILED CHANGE(S)
COMPONENTS
Current Current Proposed Proposed Cost
Action
Component Name Cost (USD) Component Name (USD)
Component 1: Capacity Component 1: Capacity
Building and Institutional 70,000,000.00 Revised Building and Institutional 183,000,000.00
Development Development
Component 2: Agriculture Component 2: Agriculture and
and Livestock Resilience, Livestock Resilience,
205,500,000.00 Revised 46,500,000.00
Intensification and Market Intensification and Market
Linkages Linkages
Component 3: Project Component 3: Project
Management and 20,000,000.00 No Change Management and Monitoring 20,000,000.00
Monitoring and Evaluation and Evaluation
Component 4: Contingent Component 4: Contingent
4,500,000.00 No Change 4,500,000.00
Emergency Response Emergency Response
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The World Bank
Smallholder Agricultural Transformation Project (P177305)
TOTAL 300,000,000.00 254,000,000.00
COSTS & FINANCING
Private Capital Facilitation
Is this an MFD-Enabling Project (MFD-EP)?
Is this project Private Capital Enabling (PCE)?
LOANS
Cancellations
Reason
Value
Loan/Credit/ Current Cancellation New for
Status Currency Date of
Trust Fund Amount Amount Amount Cancellati
Cancellation
on
BORROWE
R'S
IBRD-93960- Disbursi 300,000,000. 46,000,000.0 254,000,000.0 REQUEST
USD 26-Mar-2024
001 ng 00 0 0 FOR
COUNTRY
REASONS
Reallocations
IBRD-93960-001 Cancellations (if any): New Allocation:
Currency: USD
46,000,000.00 254,000,000.00
Financing %
(Type Total)
Category Expenditure Current Actuals + Proposed
No. Category Allocation Committed Allocation Current Proposed
1 Gds,Wks,Nc,Cs,Oc,Tr 125,250,000.0 278,804.22 118,250,000.0 100.00 0.00
(exc. CAT2&3); 0 0
2 E-Vouchers under Pt 116,000,000.0 0.00 135,000,000.0 100.00 0.00
1.2gii Project; 0 0
3 Matching Grants undr 58,000,000.00 0.00 0.00 100.00 0.00
Pt 1.2gii Proj;
5 Intrest Rte Cap or 0.00 0.00 0.00 0.00 0.00
Intrest Rte Clla;
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The World Bank
Smallholder Agricultural Transformation Project (P177305)
6 Emergency 0.00 0.00 0.00 100.00 0.00
Expenditures Progrm
Pt4;
FRONT END FEE; 750,000.00 750,000.00 750,000.00 0.00 0.00
Total 300,000,000.0 254,000,000.0
0 0
DISBURSEMENTS
Expected Disbursements (in US $) (Absolute)
Original Estimation at Preparation Actual
Year Revised Estimation
(Approval Package – 16 Jun 2022)
FY2022 0.00 0.00 0.00
FY2023 20,360,000.00 0.00 0.00
FY2024 26,060,000.00 0.00 17,368,399.00
FY2025 46,250,000.00 0.00 0.00
FY2026 55,680,000.00 0.00 0.00
FY2027 56,040,000.00 0.00 0.00
FY2028 63,010,000.00 0.00 0.00
FY2029 32,600,000.00 0.00 0.00
FY2030 0.00 0.00 0.00
ENVIRONMENTAL & SOCIAL
Environmental & Social Assessment
According to the E/S Specialist are there changes proposed to the operation’s design that No
would impact the Bank’s E&S assessment?”
Conditions
Type Description of Conditions Action
ARTICLE IV, 4.01 of the Loan Agreement: (a) The
Effectiveness Borrower has established the Project Implementation No Change
Unit and in form and substance satisfactory to the Bank.
ARTICLE IV, 4.01 of the Loan Agreement: (b) The
Effectiveness Borrower has established the EPIPs in form and No Change
substance satisfactory to the Bank.
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The World Bank
Smallholder Agricultural Transformation Project (P177305)
ARTICLE IV, 4.01 of the Loan Agreement: (c) The
Effectiveness Borrower has adopted the Project Operational Manual in No Change
form and substance satisfactory to the Bank.
Schedule 2 Section III B.1(b) of the Loan Agreement: No
Disbursement withdrawal shall be made (a) for payments made prior to No Change
the Signature Date; or
Schedule 2 Section III B.1(b) of the Loan Agreement: No
withdrawal shall be made (b) under Category (2) until
Disbursement and unless the Bank has received: (i) the E-Voucher No Change
Manual; and (ii) two E-Voucher Agreements; all in form
and substance satisfactory to the Bank;
Schedule 2 Section III B.1 (c) of the Loan Agreement: No
withdrawal shall be made (c) under Category (3) until
Disbursement and unless the Bank has received: (i) the Matching No Change
Grants Manual; and (ii) two Matching Grant Agreements;
all in form and substance satisfactory to the Bank;
Schedule 2 Section III B.1 (d) of the Loan Agreement: No
withdrawal shall be made (d) under Category (6) for
Emergency Expenditures, unless and until all of the
following conditions have been met in respect of said
expenditures: (i) (A) the Borrower has determined that
an Eligible Crisis or Emergency has occurred, and has
Disbursement No Change
furnished to the Bank a request to withdraw Financing
amounts under Category (6); and (B) the Bank has
agreed with such determination, accepted said request
and notified the Borrower thereof; and (ii) the Borrower
has adopted the CERC Manual and Emergency Action
Plan, in form and substance acceptable to the Bank.
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The World Bank
Smallholder Agricultural Transformation Project (P177305)
RESULTS
COUNTRY: Angola
Smallholder Agricultural Transformation Project
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PDO Indicators by PDO Outcomes
Increased productivity
Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period
Result Month/Year Result Date Result Date Result Month/Year
0.00 Jun/2022 0.00 04-Apr-2024 0.00 04-Apr-2024 10.00 Dec/2028
Average increase in smallholder
farmers’ crop yield per hectare Comments on achieving targets The indicator measures the average percentage increase in smallholder farmers’ crop yield per hectare.
(disaggregated by gender) Smallholder farmers are defined as those who are engaged in single or mixed farming systems involving crop,
(Percentage) livestock, pastoral, and aquaculture production. Non-cumulative results. This indicator represents a measure to
track if the project is achieving the objective of increasing smallholder farmers' productivity.
average percentage increase 0.00 0.00 0.00 10.00
disaggregated by gender
(Percentage)
Increased climate resilience
Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period
Result Month/Year Result Date Result Date Result Month/Year
Revise
Number of small farmers 0.00 Jun/2022 0 04-Apr-2024 0 04-Apr-2024 112,500 Dec/2028
organized in FFS (Farm Field Schools)
who received electronic vouchers to
implement Technology Packages
designed to enhance climate
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The World Bank
Smallholder Agricultural Transformation Project (P177305)
resilience and nutritional value
(Number)
0.00 0.00 0.00 30.00
Comments on achieving targets The indicator measures the number of women smallholder farmers adopting climate smart agriculture and
percentage of which are livestock technologies. Smallholder farmers are defined as those who are engaged in single or mixed farming
women (Percentage) systems involving crop, livestock, pastoral, and aquaculture production. The climate smart agriculture and
livestock technologies to be considered will be aligned with the project’s Technical Packages (PaTecs). Cumulative
results.
Increased productivity and climate resilience
Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period
Result Month/Year Result Date Result Date Result Month/Year
Revise
Number of people with 0.00 Jun/2022 0 04-Apr-2024 0 14-May-2024 528,750 Dec/2028
enhanced food and nutritional
security (percent of which are
women). (Number) (Number)
Revise
percentage of which are 0.00 0.00 50.00
women (Percentage)
Intermediate Results Indicators by Components
Component 1: Capacity Building and Institutional Development Revised
Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period
Result Month/Year Result Date Result Date Result Month/Year
0.00 Jun/2022 0.00 04-Apr-2024 0.00 14-May-2024 1,500 Dec/2028
Comments on achieving targets The indicator measures the number of FFS implemented and in operation with women in leadership positions
Revise within the FFS. The key leadership positions include president), secretary head of production. A minimum of 1,500
Number of FFS with women in
FFS or 30 percent should include women in the key leadership positions. The significance of this indicator is to
leadership positions (Number)
reduce gender gaps, increase female voice & agency and women's participation in decision-making positions, the
project will promote and encourage female participation. The indicator will help to measure this objective. FFSs
and their smallholder farmers will be registered in the RNPA system at GEPE. Cumulative results.
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The World Bank
Smallholder Agricultural Transformation Project (P177305)
Revise
Percentage of distributed e- 0.00 Jun/2022 0.00 04-Apr-2024 0.00 14-May-2024 95.00 Dec/2028
vouchers that were effectively used
(Percentage) (disaggregated by
women) (Percentage)
disaggregated by women 0.00 0.00 0.00 95.00
(Percentage)
0.00 Jun/2022 0.00 04-Apr-2024 0.00 14-May-2024 600.00 Dec/2028
Comments on achieving targets The indicator measures the number of national technicians who benefitted from training
Revise
National technicians who under the project, percentage of which are women. Cumulative results.
benefit from training under the
project (Number) In August 2023, 300 field technicians (consultants hired for extension services under
component 1, known by the Portuguese acronym of OTC) will be trained, while 50 national
technicians (public servants) will be trained in Octoer 2023.
0.00 Jun/2022 0.00 04-Apr-2024 0.00 14-May-2024 30.00 Dec/2028
percentage of which are
women (Number) Comments on achieving targets The sub indicator measures the number of national women technicians who benefitted from training under the
project. Cumulative results.
Component 2: Agriculture and Livestock Resilience, Intensification and Market Linkages Revised
Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period
Result Month/Year Result Date Result Date Result Month/Year
New Number of improved agricultural 0 Mar/2024 0.00 26-Mar-2024 0.00 26-Mar-2024 5 Nov/2028
technologies resulting from
partnerships between research
institutes and international R&D
institutions supported by the project
(Number)
Revise
Average increase in livestock 0.00 Jun/2022 0.00 04-Apr-2024 0.00 14-May-2024 8.00 Dec/2028
productivity of smallholder farmers
that adopt the livestock package
(Percentage)
average percentage increase 0.00 0.00 0.00 10.00
disaggregated by gender
(Percentage)
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The World Bank
Smallholder Agricultural Transformation Project (P177305)
ReviseArea provided with improved 0.00 Jun/2022 0.00 04-Apr-2024 0.00 14-May-2024 5,000.00 Dec/2028
irrigation and drainage services Comments on achieving targets The indicator measures the area provided with irrigation and drainage services. Cumulative results. The indicator
(Hectare(Ha)) contributes to measure the extent to which the project is subcomponent 2.2 objectives.
0.00 Jun/2022 0.00 04-Apr-2024 0.00 04-Apr-2024 135.00 Dec/2028
Revise Comments on achieving targets The indicator measures the amount of one-time smart subsidies (e-voucher, conditional cash transfers, etc.)
Amount of e-vouchers disbursed
disbursed (USD) by the project. Cumulative results. The project will adopt different channels to directly support
(US$ million) (Amount(USD))
smallholder farmers activities. This indicator contributes to track disbursements not included in the matching
grant scheme.
percentage of which are 0.00 0.00 0.00 30.00
disbursed directly to women
(Percentage)
Component 3: Project Management and Monitoring and Evaluation
Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period
Result Month/Year Result Date Result Date Result Month/Year
0.00 Jun/2022 0.00 04-Apr-2024 0.00 14-May-2024 113,100.00 Dec/2028
Revise
Total number of direct
Comments on achieving targets The indicator measures the total number of unique direct beneficiaries. Allowing the smallholder farmers and
beneficiaries (Number)
beneficiaries participation in different activities, the indicator compute the number of unique beneficiaries.
percentage of which are 0.00 0.00 0.00 30.00
women (Percentage)
RevisePercentage of grievances 0.00 Jun/2022 0.00 04-Apr-2024 0.00 14-May-2024 90.00 Dec/2028
registered related to delivery of
project benefits effectively addressed
(Percentage)
Revise
Women beneficiaries 0.00 Jun/2022 0.00 04-Apr-2024 0.00 14-May-2024 50.00 Dec/2028
demonstrating an improvement in
empowerment (Percentage)
(Percentage)
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Smallholder Agricultural Transformation Project (P177305)
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