Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD5550 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT PAPER ON A PROPOSED SECOND ADDITIONAL CREDIT IN THE AMOUNT OF US$76.0 MILLION FROM THE IDA SCALE UP WINDOW (SUW) AND A PROPOSED GRANT IN THE AMOUNT OF US$9.0 MILLION FROM THE LIBERIA RECONSTRUCTION TRUST FUND TO THE REPUBLIC OF LIBERIA FOR THE RURAL ECONOMIC TRANSFORMATION PROJECT November 28, 2023 Agriculture and Food Global Practice Western and Central Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective Oct 31, 2023) Currency Unit = Liberia Dollar LRD 191.50 = US$1 FISCAL YEAR January 1 - December 31 Regional Vice President: Ousmane Diagana Country Director: Pierre Frank Laporte Regional Director: Chakib Jenane Practice Managers: Abel Lufafa, Ibou Diouf Task Team Leaders: Kadir Osman Gyasi, Tojoarofenitra Ramanankirahina ABBREVIATIONS AND ACRONYMS AADT Annual Average Daily Traffic AF Additional Financing AM Accountability Mechanism BFS Biodiversity Field Survey CCDR Country Climate and Development Report CE Citizen Engagement CPF Country Partnership Framework CRI Corporate Results Indicator CRW-ERF Crisis Response Window – Early Response Financing E&S Environmental and Social EIRR Economic Internal Rate of Return ESCP Environmental and Social Commitment Plan ESF Environmental and Social Framework ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan FBO Farmer-Based Organization FCV Fragile Conflict and Violence FIDIC International Federation of Consulting Engineers FM Financial Management GCRF Global Crisis Response Framework GDP Gross Domestic Product GHG Greenhouse Gas GoL Government of Liberia GRC Grievance Redress Committee GRM Grievance Redress Mechanism GRS Grievance Redress Service HDM Highway Development and Management Model IDA International Development Association IFR Interim Financial Report IIU Infrastructure Implementing Unit LIBRAMP Liberia Road Asset Management Project LMP Labor Management Plan LRTF Liberia Reconstruction Trust Fund M&E Monitoring and Evaluation MoA Ministry of Agriculture MPW Ministry of Public Works NPV Net Present Value OPCS Operations Policy and Country Services PAPD Pro-Poor Agenda for Prosperity and Development PDO Project Development Objective PFM Public Finance Management PIU Project Implementing Unit PPAD Pro Poor Agenda for Prosperity and Development PPSD Project Procurement Strategy for Development PPP Purchasing Power Parity RAI Rural Accessibility Index RAP Resettlement Action Plan RETRAP Rural Economic Transformation Project RPF Resettlement Policy Framework SDR Special Drawing Rights SEA/SH Sexual Exploitation and Abuse / Sexual Harassment SECRAMP Southeastern Corridor Road Asset Management Project SEP Stakeholder Engagement Plan SUW Scale-Up Window US$ United States Dollars Liberia Rural Economic Transformation Project Second Additional Financing TABLE OF CONTENTS I. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING ........................................ 8 II. DESCRIPTION OF ADDITIONAL FINANCING .................................................................... 12 III. KEY RISKS ..................................................................................................................... 16 IV. APPRAISAL SUMMARY .................................................................................................. 17 V. WORLD BANK GRIEVANCE REDRESS .............................................................................. 23 VI SUMMARY TABLE OF CHANGES ..................................................................................... 24 VII DETAILED CHANGE(S) .................................................................................................... 24 VIII. RESULTS FRAMEWORK AND MONITORING ................................................................... 28 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) BASIC INFORMATION – PARENT (Liberia: Rural Economic Transformation Project - P175263) Country Product Line Team Leader(s) Liberia IBRD/IDA Kadir Osman Gyasi Project ID Financing Instrument Resp CC Req CC Practice Area (Lead) P175263 Investment Project SAWA1 AWCW1 Agriculture and Food Financing (10401) (6547) Implementing Agency: Ministry of Agriculture ADD_FIN_TBL1 Is this a regionally tagged project? No Bank/IFC Collaboration Joint Level Complementary or Interdependent project Yes requiring active coordination Expected Approval Date Closing Date Guarantee Environmental and Social Risk Classification Expiration Date 04-Jun-2021 30-Jun-2029 Substantial Financing & Implementation Modalities Parent [ ] Multiphase Programmatic Approach [MPA] [ ] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [✓] Fragile State(s) [ ] Performance-Based Conditions (PBCs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a Non-fragile Country [ ] Project-Based Guarantee [✓] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made disaster [ ] Alternate Procurement Arrangements (APA) [ ] Hands-on Expanded Implementation Support (HEIS) Page 1 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) Development Objective(s) To improve productivity and market access for small holder farmers and agri-enterprises for selected value chains in project participating counties. Ratings (from Parent ISR) RATING_DRAFT_ NO Implementation Latest ISR 13-Sep-2021 17-Dec-2021 23-Jun-2022 19-Aug-2022 03-Mar-2023 08-Sep-2023 Progress towards achievement of MS S S S S S PDO Overall Implementation MS S S S S S Progress (IP) Overall ESS Performance S S S S S S Overall Risk S S S S M M Financial Management MS MS MS MS MS MS Project Management S S S S S S Procurement MS MS MS MS MS MS Monitoring and Evaluation S S S S S S BASIC INFORMATION – ADDITIONAL FINANCING (Rural Economic Transformation Project Second Additional Financing - P181083) ADDFIN_TABLE Urgent Need or Capacity Project ID Project Name Additional Financing Type Constraints P181083 Rural Economic Scale Up No Transformation Project Second Additional Page 2 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) Financing Financing instrument Product line Approval Date Investment Project IBRD/IDA 08-Dec-2023 Financing Projected Date of Full Bank/IFC Collaboration Disbursement 30-Oct-2029 No Is this a regionally tagged project? No Financing & Implementation Modalities Child [ ] Series of Projects (SOP) [ ] Fragile State(s) [ ] Performance-Based Conditions (PBCs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a Non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made disaster [ ] Alternate Procurement Arrangements (APA) [ ] Hands-on Expanded Implementation Support (HEIS) [ ] Contingent Emergency Response Component (CERC) Disbursement Summary (from Parent ISR) Net Source of Funds Total Disbursed Remaining Balance Disbursed Commitments IBRD % IDA 85.00 23.47 61.53 28 % Grants % PROJECT FINANCING DATA – ADDITIONAL FINANCING (Rural Economic Transformation Project Second Additional Financing - P181083) PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFi n1 Page 3 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) SUMMARY (Total Financing) Proposed Additional Total Proposed Current Financing Financing Financing Total Project Cost 59.00 93.00 152.00 Total Financing 59.00 93.00 152.00 of which IBRD/IDA 55.00 76.00 131.00 Financing Gap 0.00 0.00 0.00 DETAILS - Additional Financing NewFinEnh1 World Bank Group Financing International Development Association (IDA) 76.00 IDA Credit 76.00 Non-World Bank Group Financing Counterpart Funding 8.00 Borrower/Recipient 8.00 Trust Funds 9.00 Liberia Reconstruction Trust Fund 9.00 IDA Resources (in US$, Millions) Guarantee Credit Amount Grant Amount SML Amount Total Amount Amount Liberia 76.00 0.00 0.00 0.00 76.00 Scale-Up Window 76.00 0.00 0.00 0.00 76.00 (SUW) Total 76.00 0.00 0.00 0.00 76.00 COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? Page 4 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) [ ] Yes [ ✔ ] No Does the project require any other Policy waiver(s)? [ ] Yes [ ✔ ] No ESStandards Environmental and Social Standards Relevance Given its Context at the Time of Appraisal E & S Standards Relevance Assessment and Management of Environmental and Social Risks and Impacts Relevant Stakeholder Engagement and Information Disclosure Relevant Labor and Working Conditions Relevant Resource Efficiency and Pollution Prevention and Management Relevant Community Health and Safety Relevant Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Relevant Biodiversity Conservation and Sustainable Management of Living Natural Relevant Resources Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Not Currently Relevant Local Communities Cultural Heritage Relevant Financial Intermediaries Not Currently Relevant ESStandardsNote NOTE: For further information regarding the World Bank’s due diligence assessment of the Project’s potential environmental and social risks and impacts, please refer to the Project’s Appraisal Environmental and Social Review Summary (ESRS). INSTITUTIONAL DATA Practice Area (Lead) Agriculture and Food Contributing Practice Areas Transport Climate Change and Disaster Screening This operation has been screened for short and long-term climate change and disaster risks Page 5 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) PROJECT TEAM Bank Staff Name Role Specialization Unit Team Leader (ADM Kadir Osman Gyasi Agriiculture SAWA1 Responsible) Tojoarofenitra Team Leader Transport IAWT3 Ramanankirahina Procurement Specialist (ADM Oyewole Oluyemi Afuye Procurement EAWP2 Responsible) Sydney Augustus Olorunfe Financial Management Financial Management EAWG2 Godwin Specialist (ADM Responsible) Environmental Specialist (ADM Aloysius K Kotee Environment SAWE4 Responsible) Social Specialist (ADM Sarah Antwi Boasiako Social Development SAWS1 Responsible) Adetunji A. Oredipe Team Member Agriculture SAWA1 Aguiratou Savadogo-Tinto Peer Reviewer Transport IAET1 Akhilesh Ranjan Social Specialist Social Development SAWS1 Alari Hasanatu Ijileyoh Team Member Private Sector EAWF2 Mahdi Caroline Nelima Wambugu Window Manager Trust Fund AWMLR Chidozie Onyedikachi Team Member Agriculture SAWA1 Anyiro Damon C. Luciano Team Member Transport IEAT1 Edith Ruguru Mwenda Counsel Legal LEGAM George Amoasah Environmental Specialist Environmental SAWE4 Ines Melissa Emma Attoua Team Member Disbursement WFACS Etty Kelvin Doesieh Team Member Agriculture SAWA4 Mack Capehart Mulbah Team Member Social Protection HAWS3 Maiada Mahmoud Abdel Team Member Disbursement WFACS Fattah Kassem Manievel Sene Peer Reviewer Agriculture SAWA1 Michel De Marigny Team Member Disbursement WFACS Page 6 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) Ndiga Akech Odindo Counsel LEGAM Negede Lewi Teklemariam Team Member Transport IAWT3 Patience Nyenpan Team Member Operations AWMLR Rohan G. Selvaratnam Team Member Agriculture SAWA1 Samuel Taffesse Peer Reviewer Agriculture SAWA1 Vaanii O. Baker Team Member Agribusiness CAFA2 Yeyea Gloria Kehleay Team Member Operations AWMLR Nasser Zephaniah J Smith Team Member Financial Management EAWG2 Zinnah S Mulbah Team Member Environment SAWE4 Zoe Quoi Diggs Duncan Procurement Team STEP AWMLR Extended Team Name Title Organization Location Page 7 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) I. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING A. Introduction 1. This project paper seeks the approval of the Executive Directors to provide an IDA credit in the amount of US$76 million, from the Scale-Up Window (SUW) as additional financing (AF) to the Liberia Rural Economic Transformation Project (RETRAP, P175263). The project will also be co-financed by a grant from the Liberia Reconstruction Trust Fund in the amount of US$9.0 million. This would be the second AF and will be used to scale-up work on establishing basic road connectivity, which is vital to food production, livelihoods strengthening, social inclusion, resilience building, and overall competitiveness of Liberia’s economy. B. Country Context 2. Liberia's economy has been on a recovery path after facing a series of detrimental external shocks between 2014 and 2020. These shocks ranged from the Ebola outbreak, plummeting prices of iron ore and rubber, the economic implications of the United Nations peacekeeping forces' withdrawal, extreme weather occurrences, to the devastating effects of the COVID-19 pandemic. Consequently, the country's per capita Gross Domestic Product (GDP) declined by a cumulative 15.4 percent, increasing the rate of extreme poverty [share of the population living with less than US$2.15 (2017 PPP) per day] to one-third, and the rate of absolute poverty [share of the population living with less than US$3.65 per day] to two- third1. This setback undid nearly half of the progress made between 2003 and 2013. Additionally, when gauged by regional and international metrics, Liberia's non-monetary poverty indicators, encompassing access to healthcare, education, and basic utilities, are notably low. There are pronounced disparities, particularly between rural and urban areas and across genders, stemming from unequal access to resources like productive assets, infrastructure, public services, and markets. Nevertheless, from late 2019 onwards, the nation's authorities have made commendable efforts to reinstate macroeconomic stability and bolster growth. Demonstrating resilience, the economy grew by 5 percent in 2021 and 4.8 percent in 2022, even in the face of global challenges like the Russia’s invasion of Ukraine and broader economic uncertainties. C. Sector Context 3. Agriculture plays a key role in Liberia’s socio-economic development. The sector is a primary livelihood for more than 60 percent of the population and contributes almost 37 percent of the country’s GDP. Additionally, agriculture contributes about 14 percent of the country’s export revenues and foreign exchange earnings. It also provides raw materials for manufacturing industries such as rubber and palm oil, which are vital exports for the country. The sector has the potential to alleviate poverty and also stem rural-urban migration, which is a key development concern for the country. 4. Although the country is endowed with favorable climate and soils necessary to underpin a vibrant 1 Macro-Poverty Outlook (MPO) https://thedocs.worldbank.org/en/doc/bae48ff2fefc5a869546775b3f010735- 0500062021/related/mpo-lbr.pdf Page 8 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) agriculture sector, the performance of the sector has historically been low. As an example, crop productivity, a useful indicator of sector performance is still low – even by the already modest standards in the subregion – rice yields stand at 1.48 Mt/ha, compared to 2.9 Mt/ha in Cote d’Ivoire and Ghana while cassava yields stand at 8.1 Mt/ha, compared to 23.0 Mt/ha in Ghana and 14.5 Mt/ha in Sierra Leone).2 5. Among others, performance of the sector is constrained by poor road access/connectivity even in areas with high agricultural potential. Large parts of Liberia’s northeast, and much of the central, coastal, and southeastern regions do not have access to all-weather roads. The Rural Accessibility Index (RAI), a measure of the share of the rural population living within 2km of an all-weather road, was estimated at 41.9 percent, meaning that an estimated two thirds of Liberians (approximately 2.3 million people) reside more than two kilometers from an all-season road.3 In most rural districts, RAI is less than 10 percent, implying that the bulk of rural communities are largely physically isolated. This poor connectivity undermines sector performance and competitiveness as farmers and agribusinesses face considerable challenges accessing both input and output markets as well as other basic services. As a result, smallholders tend to sell produce in local markets where prices are relatively lower, and a significant share of the country’s production is wasted through postharvest losses thus undermining farmer incomes and overall national food security. 6. Despite the Government’s current initiative to rehabilitate the main roadways and some key feeder roads in productive areas, more work is needed to improve roads and bridges in remote rural areas. The Government of Liberia (GoL) has promoted a comprehensive road network and investment in strategic roads, including the Southeastern Corridor, to improve agriculture sector performance and overall competitiveness. Parts of this corridor which could provide reliable connectivity through an important rice production area (Nimba county) and establish basic east-west national road connectivity while enhancing regional connectivity (including Trans Africa Highway Seven), remain unfinanced. The proposed AF responds to the Government’s request to construct this remaining undeveloped section of this important Southeastern Corridor with due consideration to climate change impacts on the resilience and sustainability of the road network in Liberia. 7. Although Liberia’s road network provides sufficient spatial coverage, poor road conditions limit mobility and access in most areas of the country making most of the roads unpassable during rainy seasons and rendering many rural communities isolated, sometimes for weeks at a time. Liberia has a road network of about 13,019 km in length. With a road density of 13.42 kms per 100 km 2 of land, it is reasonably comparable with that of other countries in the region. The length of non-urban roads is 12,453 km of which about 5.6 percent of the road length is paved, and 94.4 percent is unpaved4. The length of urban roads is 566 km of which only 36 percent is paved. Road conditions in 2019 by surface type indicate that more than 60 percent of the paved road length is in good condition, about 12.8 percent in fair condition and 26.7 percent in bad condition. About 22.5 percent of unpaved roads are in good condition, 46.5 percent in fair condition and 31 percent are in bad condition. The relatively higher figure in the good conditions of paved is due to the major investments on the few major corridors that were paved over the last decade. 2FAO Statistics. 3Spatial Analysis of Liberia’s Transport Connectivity and Potential Growth (English). International Development in Focus Washington, D.C.: World Bank Group. 4 Road Sector Development Program (RSDP), June 2023 Page 9 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) 8. The road network in Liberia is vulnerable to climate change. The exposure of Liberia’s road network to climate variability and change is projected to increase5. Climate change is enhancing the road network vulnerability, acting as a threat multiplier. Increased frequency of intense rainfall is expected. Changes in precipitation, temperature, and flooding can damage roads and bridges, increasing annual maintenance costs, causing delays for passengers, and reducing labor productivity6. D. Consistency with the Country Partnership Framework 9. The proposed AF aligns with the Country Partnership Framework (CPF) for Liberia for FY19-FY24 (Report number 130753-LR) and the World Bank Group Strategy for Fragility, Conflict, and Violence 2020-2025 (FCV Strategy). Project investment in road infrastructure in southeastern Liberia directly contributes to CPF I.2, “A more conducive environment for commercial agriculture, fishery, forestry, and rural development”, Objective III.7, “Improved access to utilities, markets, and community services”, and Objective III.8, “by increasing local resilience to shocks including climate-related shocks”. 10. The proposed AF is consistent with Liberia’s Revised Nationally Determined Contribution (NDC)7. As an adaptation target in the transport sector, Liberia commits to ensure low-income population can have better connectivity to reach jobs, education, and healthcare services, and improved access to economic and social opportunities. Adaptation measures in the NDC include continuation of road upgrading and construction, such as ensuring increased resilience of infrastructure to anticipated climate and extreme weather events. The proposed AF is also consistent with Liberia’s National Adaptation Plan8. Implementation of climate-proofing investment in the road sector in rural areas is among the adaptation strategies to reduce the risk and vulnerability to climate change impacts. 11. The proposed AF is also fully aligned with the Pro Poor Agenda for Prosperity and Development (PAPD), the 5-year development agenda of Liberia. Through the investment in this critical road corridor, this proposed AF contributes to the objective 3.51 “transforming the road infrastructure” under Pillar 3 “the economy and the jobs” According to the PAPD, the road deficit remains one of the binding constraints to Liberia's development. Lack of access to all-weather road continues to impede the movement of goods and services, equipment, and machinery for production which directly affects the poor and vulnerable population. Road investments will not be pursued in a silo but will be linked to development corridors in important sectors such as agriculture. E. Parent Project Implementation 5 For 1901 - 2016, mean annual precipitation is 2,500 mm, and mean monthly precipitation of the country varies from 27 mm in January to 400 mm in September. 6 According to the Liberia Country Climate and Development Report (CCDR), Liberia is one of the world’s lowest emitters of greenhouse gases, and as it develops, Liberia will need to focus on adaptation measures.. The modeling results in the CCDR show large increases in both maintenance costs and travel delays. Impacts are generally higher under the wet/warm scenario than the dry/hot scenario because extreme precipitation and flooding cause the greatest damage to roads and bridges. By 2050, delays could reach 12.5 million additional hours relative to the baseline. Annual weather-driven repair costs over 2031–50 could rise to $900 per km. 7 https://unfccc.int/sites/default/files/NDC/2022-06/Liberia%27s%20Updated%20NDC_RL_FINAL%20%28002%29.pdf 8 https://unfccc.int/sites/default/files/resource/LIBERIA_ NAP_ FINAL_ DOCUMENT.pdf Page 10 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) 12. The original project (RETRAP) in the amount of IDA US$55 million was approved by the World Bank Board of Directors on June 4, 2021. An additional financing from the World Bank’s Crisis Response Window – Early Response Financing (CRW-ERF) in the amount of IDA US$30 million was approved on December 22, 2022, to help the Government of Liberia to respond to food, employment, and resilience crisis. The current closing date is June 30, 2029. The Project Development Objective (PDO) is to improve productivity and market access for smallholder farmers and agri-enterprises for selected value chains in project participating counties. The project components and costs are summarized below: 13. Component 1: Improving the Enabling Environment for Agribusiness Development (US$3.0 million): The objective of this component is to improve the enabling environment for agribusiness development in Liberia through the following interventions: (i) building the capacity of public agribusiness services to deliver quality services to private investors, including smallholder farmers; (ii) enhancing value chain coordination and public-private dialogue; and (iii) supporting agricultural research and development and extension. 14. Component 2: Enhancing Competitiveness and Market Access through Productive Alliances (US$18 million). The aim of this component is to support smallholders and commercially oriented farmers to improve their capacity, operate competitively, and establish more reliable linkages with buyers. Component 2 provides matching grants to farmers to support pre-investment activities that are designed to pave the way for the development of proposals for investment subprojects. 15. Component 3: Agri-Marketing and Road Infrastructure Investments (US$31.5 million) which aims to improve access to markets through the rehabilitation of 40 km of the Southeastern Corridor in Liberia, including construction of short-span critical cross-drainage structures, and modernization of selected agri- markets. This component complements World Bank engagements in Liberia’s Transport sector.9 16. Component 4: Project Coordination and Management and Contingency Emergency Response (US$6.5 million) which supports: (i) establishing appropriate coordination, Monitoring and Evaluation (M&E), and communication regarding project implementation; and (ii) ensuring that the GoL is better equipped to respond to crises and emergencies.; and 17. Component 5: Support to Food Security (US$30 million) focusing on stimulating a food supply response through emergency production support to affected communities, while also addressing the underlying vulnerability to any such future shocks on food security. This component finances: (i) support for increased food production; (ii) support to rural community infrastructure; and (iii) support to strengthening food crisis prevention and monitoring systems. 18. Overall, RETRAP progress towards achieving the PDO and implementation progress are rated Satisfactory. The adoption of improved technologies has resulted in an increase in cassava yield from the baseline figure of 6 tons per hectare to 10 tons (i.e. 66 percent increase compared to the end of project target of 30 percent) whilst rubber yield has slightly increased from 1.2 Mt/ha to 1.4 Mt/ha (representing 9The RETRAP project complements a program of support to Liberia’s road sector by the World Bank and other Development Partners. The World Bank is supporting institutional, policy, and capacity development needs through the Southeastern Corridor Road Asset Management Project (SECRAMP, P149279), Liberia Road Asset Management Project (P125574), and an ongoing Analytical Sector Activity for Regional Connectivity in the Mano River Union Countries (P179978). Page 11 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) 16.67 percent increase over the baseline compared to the end of project target of 30 percent). About 13,585 farmers (5,613 females), representing 56.7 percent of the the end of project target of 24,000 have adopted climate-smart agriculture and household nutritional practices. An average increase of 32 percent (against the target of 30 percent) has been recorded in the marketed volume of locally produced agricultural commodities by project-supported Farmer-Based Organizations. The contract for the design and construction of the 40 km road section from Tappita to Toe-Town has been signed and is expected to start after the completion of RAP implementation and Biodiversity Field Survey which is a disbursement condition. The financial management rating is Moderately Satisfactory, mainly because of delays in the documentation of some expenditures. The project has drawn up an action plan and is currently implementing mitigation measures to ensure that the PIU maintains a strong financial management system and undertakes monthly documentation of expenditures. There is no outstanding audit report. The procurement implementation arrangement on the project remains the same. The International Procurement Specialist will continue to collaborate with the procurement specialist with IIU, in view of the complex works procurement packages to be implemented. The procurement performance rating remains Moderately Satisfactory. Safeguards performance is rated satisfactory, and the project is up to date on all legal covenants. II. DESCRIPTION OF ADDITIONAL FINANCING 19. The proposed AF will mainly finance the scaling-up of road rehabilitation under the parent project. The road corridor to be rehabilitated has been prioritized for its contribution to market access and overall food security. Key revisions to the parent project will include: (i) changes in project costs and modification of activities; and (ii) changes in the results framework. The AF will deploy additional credits in the amount of US$76 million from IDA, an additional grant in the amount of US$9.0 million from the Liberia Reconstruction Trust Fund, and a counterpart funding of US$8 million to finance a specific 10 km road rehabilitation. 20. By upgrading from unpaved to paved road, this proposed AF is transformative in adapting Liberia’s road network to increased climate change risks which is a threat to connectivity and food security across the country. With the paved surface and other resilient designs, the proposed road is expected to remain passable throughout the year and withstand potential heavy rainfall and flooding. 21. The 85 km road from Toe-Town to Zwedru and the Ivory Coast border under this proposed additional financing will complement the following achievement and the on-going activities financed by the World Bank in Liberia: (i) 248 km road corridor improvement from Monrovia to Ganta and the Guinea border (LIBRAMP – P125574); (ii) 100 km Southeastern Corridor improvement from Ganta to Saglepie and Tappita10 (SECRAMP – P149279); and (iii) 40 km Southeastern Corridor improvement from Tappita to Toe- Town (parent project). This will also complement the African Development Bank funded 166 km road improvement between Kelipo, Fishtown, Harper, and Havala on the Southeastern corridor. F. Change to project activities/costs 22. Component 3 (Agri-Marketing and Road Infrastructure Investments) costs will increase by US$93 10 The 39 km between Ganta and Saglepie is entirely financed by the GoL Page 12 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) million (US$76 million from IDA, US$9 million from the LRTF, and US$8 million counterpart funding) to scale-up investments in infrastructure. The AF scale-up activities will focus mainly on financing: (i) the construction of an additional 85 km road of which 75 km is on the Southeastern Corridor; (ii) climate- resilient spot improvements to feeder roads leading to the corridor; (iii) the related monitoring, Environmental and Social (E&S), and climate adaptation consultancy services11; (iv) the associated Human Resources operating costs; (v) a cost overrun / funding gap of US$5.25 million on the 40 km road from Tappita to Toe-Town under the parent project; and (vi) a contingency for resettlement and physical / price adjustment (see Table 1). 23. The 85 km road includes 75 km segment from Toetown to Zwedru on the Southeastern Corridor and a 10 km spur connecting the Southeastern Corridor to the Ivory Coast border12. This road section links the southeastern part of Liberia, where about a third of its population dwells, to the capital city of Monrovia as well as the Freeport of Monrovia. This investment is key to providing an economic lifeline for inaccessible rural areas that are strongly vulnerable to climate change impacts and with high incidence of poverty. It will also support the economic integration of the region with the rest of Liberia and neighboring countries and foster regional trade with Côte d’Ivoire and Guinea. In addition, the construction upgrade of this segment to an all-weather standard will contribute to improvement in market access, reduce logistical cost, reduce post-harvest losses, boost agricultural sector competitiveness, and improve rural livelihoods and food security. 24. The road will be constructed under a design-build approach based on an existing conceptual design. Works will include full construction of a climate-resilient two-lane carriageway (3.75-meter-wide lanes and 1.5-meter paved shoulders) with bituminous surfacing along the existing right-of-way, with associated drainage structures, and road furniture. In the urbanized zones, the road section will have 1.5-meter-wide block paved pedestrian walkways on both sides with climate-resilient features, wide concrete side drains to accommodate heavy precipitation, and disability inclusive access as required. The works will also provide several cross-drainage structures, culverts, and bridges over streams and rivers. The pavement will have a 20-year design life. The designs and works will also incorporate road safety measures through pre-investment, design, and post-construction safety audits. Spot improvements on critical sections of feeder roads, severely affected by climate change impacts, that link targeted agricultural production zones and the primary road corridor will also be financed following design parameters that increase resiliency to climate change and extreme weather events. Table 1 and table 2 below present respectively the breakdown costs of the proposed additional financing and the changes in the overall project costs. 11 Some of these activities will be retroactively financed. 12 The 10 km spur will be financed entirely by counterpart funding. Page 13 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) Table 1: Breakdown costs of the proposed 2nd additional financing Amount13 Activity Comment (US$ m) Works on the 75 km Toe-Town Zwedru road corridor 64.45 Climate-resilient works on feeder roads The Government of Liberia has committed to finance the 10 Works on the 10 km from the road corridor to the Ivory 8.0 km road works between Toe-Town and the Ivory Coast Coast Border border using their own funds. Monitoring Consultant Services on the 75 km + 10 km 3.22 road Cost overrun on the 40 km Tappita Toe-Town road 2.75 Road activity budget in the parent project: US$30 million works 40 km road works contract after bidding: US$32.75 million Funding gap on the Monitoring Consultant Services of 2.5 Monitoring services for the 40 km road: US$2.5 million the 40 km Tappita Toe-Town road ESIA (Environmental and Social Impact Assessment) of For retroactive financing. These studies could not be 0.36 the 75 km + 10 km road financed by the parent project as the completion of a BFS is a disbursement condition for the entire road component BFS (Biodiversity Field Survey) of the 40 km road under 0.8 (works + consulting services). This will be revised in the the parent project and the 75 km + 10 km road proposed AF so that the BFS will only hold up the road works. Staff costs for the implementation of the road activity 1.77 IIU staff costs For social and environmental safeguards management, Contingency 9.15 physical, and price contingency Total 93.0 US$76 million IDA, US$9 million LRTF, US$8 million GoL Table 2: Revised project costs (IDA, LRTF, and counterpart funding) Project component Costs (US$ million) Original Changes Proposed Changes including including first AF second AF first and second AF 1. Improving the enabling environment for agribusiness 6.0 3.0 - 3.0 development 2. Enhancing competitiveness and market access through 12.5 14.0 - 14.0 productive alliances14 3. Agri-marketing and road infrastructure investments15 31.5 31.5 93.0 124.5 4. Project coordination and management and contingency 6.5 5.0 6.5 - emergency response 5. Support to food security 30.0 - 30.0 Total 55.0 85.0 93.0 178.0 G. Changes to the Results Framework 25. While the PDO remains unchanged, the results framework has been streamlined and adjusted to reflect the additional 85 km resilient road. A summary of the changes is in the Table 3 below. 13 The US$9 million LRTF will only finance works. 14 The GoL has committed a US$4 million contribution to Component 2. 15 The Gol has committed a US$8 million contribution to finance the 10 km Toe-Town Ivory Coast border road works in Component 3. Page 14 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) Table 3: Summary of the changes in the results framework Indicator Status Comments PDO indicators Farmers reached with agricultural assets or services Revised The target values have been increased to reflect the additional activities (from 24,000 to 30,000, and from 9,600 to 12,000 for female farmers) Increase in marketed volume of locally produced Revised The target values have been increased to reflect the additional agricultural commodities by project supported activities (from 20 or 30 percent to 50 or 70 percent). Farmer-Based Organisations (FBOs) Reduction in transportation time Revised This indicator has been disaggregated in 3: (i) between Tappita and Toe-Town for the 40 km road corridor under the parent project; (ii) between Toe-Town and Zwedru for the 75 km road corridor under the IDA financing of the proposed AF2; and (iii) in the 10 km spur connecting the corridor with Ivory Coast border Reduction in transportation time disaggregated by Dropped This has been dropped given the complexity to get accurate type of vehicle data on them. Passengers and the freights volumes Dropped These indicators have been dropped given the difficulty to get data on them. Direct project beneficiaries of which female Revised The target values have been revised to reflect the additional road (from 96,000 to 160,000) Intermediate Results Indicators Grievances registered related to delivery of project Revised This indicator is replaced by “Percentage of project related benefits that are actually addressed (Number) grievances that are addressed” Climate-resilient roads constructed New This indicator has been introduced to replace the “Roads constructed – rural” and “Roads constructed – non rural”. The target values have been revised to include the 85 km additional road H. Beneficiaries 26. Direct beneficiaries of the AF include targeted farmers, and users of road transport services. Most of the beneficiaries are rural households and communities who will benefit from access to an all-weather road. Improved road conditions along the additional 85 km of the corridor will also directly benefit transport service providers in the form of reduced vehicle operating costs, reduced travel times, and – potentially – increased demand for their services and access to new markets. Those living along the southern section of road corridor will benefit directly from establishment of all-weather road connectivity to the rest of Liberia. It has been estimated that about 900,000 people will be impacted directly or indirectly by the project. I. Lessons Learned and Reflected in the Project Design 27. The project design builds on lessons from projects implemented in the agricultural sector and in the implementation of the parent RETRAP. Some of the lessons reflected in the project design include a design-build approach for the works. It has been more successful than the widely utilized International Federation of Consulting Engineers (FIDIC) approach in the country’s low-capacity and high-risk Page 15 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) environment. Combining design and construction increases contract amount; hence, makes it more attractive to internationally reputable firms. Otherwise, because of higher mobilization costs and other risks in Liberia, selection of firms and procurement can be difficult and face delays. III. KEY RISKS 28. The overall risk rating of the proposed AF is commensurate with the risk rating of the parent project and is assessed as “Moderate.” The risk mitigation measures specified in the parent project remain relevant. 29. Fiduciary risk is Substantial. The continued engagement of development partners in the Public Financial Management (PFM) and procurement implementation has resulted in an enhanced fiduciary environment in Liberia, including improved capacity. Despite the progress made in improving the fiduciary system, with proper attention to value for money, there are still opportunities for ensuring proper use of project funds for intended purposes. Gaps in existing capacity for project management could also lead to delayed progress in implementing project activities and achieving targets. Mitigation: This project will support capacity building of the existing PIU to manage the fiduciary aspects of the project and underlying internal controls, as well as efficient procurement processes and contract management system. 30. Environmental and Social risks are Substantial. The project’s adverse environmental and social risks and impacts mainly emanate from interventions under Components 2 and 3 of the project. The project will intervene in sensitive areas characterized by severe climate events, the possible occurrence of few patches of natural habitats in the area of influence of the roads and possible occurrence of some animal species of conservation value such as the critically endangered Western Chimpanzee (Pan troglodytes verus), invasive species, including pests; involuntary resettlement and land acquisition, challenges of the client managing resettlement impacts in past projects, risks of Sexual Exploitation and Abuse and Sexual Harassment (SEA/SH), exclusion of the poor and vulnerable from project benefits, elite capture, and labor influx due to the proposed road construction are potential environmental and social risks and impacts associated with the additional 85 km of road development under the AF. Implementation arrangements from the parent project will be retained in full. Mitigation: The AF will build directly on relevant E&S standards and structures put in place under the parent project. Implementation arrangements from the parent project will be retained in full. The parent project Environmental and Social Management Framework (ESMF), Resettlement Policy Framework (RPF), the Stakeholder Engagement Plan (SEP), Environmental and Social Commitment Plan (ESCP), Labor Management Plan (LMP), and Sexual Exploitation and Abuse and Sexual Harassment (SEA/SH) Action Plan will be updated to cover the entire 125km corridor and disclosed 90 days after effectiveness to guide the mitigation of the environmental and social risks of the activities proposed under the AF. The project will prepare an ESIA and ESMP for the proposed 85 km prior to the finalization of road design. Due to the possible occurrence of few patches of natural habitats in the area of influence of the 40 km road under the parent project and possible occurrence of some animal species of conservation value, the project is required to conduct a Biodiversity Field Survey (BFS) prior to civil works as enshrined in the parent project ESCP. The ESIA and ESMP of both 40 km and 85 km segments will be updated to incorporate BFS findings and related Biodiversity Management Plan ninety days (90) after the approval of the Biodiversity Management Plan. The Environment risks rating may be reviewed based on the findings of the BFS. The Resettlement Action Plan (RAP) which covers the parent project corridor (40 km) remains adequate; a new cut-off date will be set Page 16 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) to prepare a new RAP for the AF corridor (85 km). The RAP will be disclosed and implemented prior to commencement of works on the 85 km road corridor. 31. Climate and disaster risks: Climate and disaster-risk screening examined the potential impacts of climate and geophysical hazards on the Project’s physical components. The Climate and Disaster-Risk Screening report shows that the Project is moderately exposed to drought, extreme precipitation, flooding, and extreme temperatures. Mitigation: The Project will (i) build the capacity of implementing agencies at the county and district level to identify and proactively address climate vulnerabilities; (ii) build capacity at the community level to address climate vulnerabilities; and (iii) identify and invest in climate-resilience activities (productive investments and infrastructure). IV. APPRAISAL SUMMARY A. Economic and Financial Analysis 32. The economic analysis of the 85 km resilient road shows that this proposed road investment is economically viable. The economic analysis was updated for the entire corridor using a re-calibrated Highway Development and Management Model (version 4, or HDM-4) workspace for Liberia, and based on the following assumptions: (i) a service life of 20 years; and (ii) a discount rate of 6 percent. Benefits considered in the economic analysis include: the road user cost savings, vehicle operation costs, and travel time costs for passengers and cargo16. The analysis was carried out for the two sections of road (Tappita- Zwedru, 74.5 km and Toe Town-Cote D’Ivoire Border, 10.5 km) separately and combined. The table 3 below summarizes findings of the economic analysis, showing that economic returns on the proposed investments are high in all cases, ranging from 8.6 percent to 13.1 percent, and this is confirmed by a sensitivity analysis of the robustness of the results. Even if construction costs increase by 20 percent and the traffic volume growth decreases by 20 percent, the economic returns on investments are still viable. Table 4: Summary Economic Evaluation Indicators Zwedru to Ivory Toe-Town Zwedru Toe-Town Zwedru Coast Border Economic Evaluation Ivory Coast Border Road (74.5km) (10.5km)17 (85km) Economic Internal Rate of Return (EIRR) 13.4 8.6 13.1 Net Present Value (NPV) (US$, millions) 67.1 1.36 68.5 NPV- to Capital Costs Ratio 0.82 0.25 0.78 Sensitivity Results NPV/EIRR (20% decrease in traffic growth rate) 45.9/11.4 0.54/7.1 46.4/11.2 NPV/EIRR (20% increase in construction costs) 51.9/11.0 0.35/6.6 52.2/10.8 NPV/EIRR (20% decrease in traffic growth rate 30.8/9.2 -0.48/5.2 30.3/9.0 plus 20% increase in construction costs) 33. The estimated net greenhouse gas emissions for the road investment are positive. Using HDM, 16 The Road Safety Screening and Assessment Tool (RSSAT) is not applicable to construction of new roads and has therefore been omitted from the analysis. 17 The traffic on the Toe Town is low due to its deteriorated condition and the HDM-4 analysis assumed 50 percent of the traffic on the Tappita-Zwedru Section will be generated in the opening year. Page 17 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) the vehicle emissions under two scenarios (with and without project investments) over a 20-year analysis period were estimated. The net vehicle emission amounts are equivalent to the difference under these two scenarios. The estimated net total vehicle emissions for the proposed investment is approximately 72,000 tons, which is equivalent to approximately 3,600 tons per year. B. Technical 34. Selection of the 85 km segment of the Southeastern Corridor and linked feeder roads for the AF was based on several criteria. These include: (i) their importance to unlocking Liberia’s largely unrealized agricultural potential; (ii) their contribution to increased competitiveness of locally produced agriculture products; (iii) the potential reduction in transport costs, which is key to reducing food prices and improving food security; (iv) its contribution to delivery of basic public services; (v) its contribution to trade and development through improved regional integration 18 ; and (vi) their vulnerability to climate change impacts. 35. The project will complete the missing link, the Côte D’Ivoire Border – Toe Town – Zwedru (85 km), on the Southeastern Road Corridor of Liberia 19 , which is key to provide economic lifeline for inaccessible rural areas with high and worsening poverty. It will also support economic integration of the region with the rest of Liberia and neighboring countries and foster regional trade with Côte d’Ivoire and Guinea. The existing road is mostly a gravel single carriageway with widths varying from 6 – 8 meters (m). Surface conditions vary by section, with only less than 1 km of road paved in Zwedru. Over the years, repeated grading has lowered critical sections to below the original ground level. This has created an entrenched cycle of “ponding” on the carriageway, resulting in significant rutting under truck loads and further deterioration of the road, making the road inaccessible during most of the rainy season spanning May to October. 36. The climate-resilient road upgrading works will utilize standard construction methods for asphalt concrete roads with granular base which are appropriate for the anticipated traffic composition. Current traffic levels are estimated at 313 and 23 annual average daily traffic (AADT) for the Toetown – Zwedru section of the road (73.5 km), and Toe Town to Cote D’Ivoire border (10.5 Km) sections respectively with the lower traffic volumes reflecting the poorer road conditions. Annual traffic growth of 6 percent (0-5 years), 5 percent (5-10 years) and 3 percent (10-20 years) is adopted to estimate AADT at Target Completion Date. The design and build contract format (with minimum specifications) is appropriate for the project context because it shifts the design and construction risks to the private sector, which is better equipped to anticipate and manage those. This approach has been successfully used for construction of road and bridge infrastructure in prior IDA-financed projects in Liberia. 37. The operation is aligned with the goals of the Paris Agreement on both adaptation and mitigation. 38. Assessment and reduction of adaptation risks: The operation supports rural road works without 18 The corridor is part of the Trans–West African Coastal Highway or TAH 7 is a transnational highway project to link 12 West African coastal nations, from Mauritania in the north-west of the region to Nigeria in the east. 19 The Ganta to Sagleipie road section (38.67km) and Saglepie to Tappita (61km) is being developed by the Government of Liberia through the National Road Fund (NRF) and the World Bank and the Liberia Reconstruction Road Trust Fund (LRTF) respectively. While the Tappita to Toe Town (40km) is being upgraded under Parent Project (RETRAP). Page 18 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) capacity expansion. The main climate and disaster risks likely to affect the project investments are flooding, and rainfall. The project design takes into consideration the precipitation and flooding risks that threaten the outcomes of the project, considering its interventions include the promotion of bioengineering during road rehabilitation will stabilize slopes and mitigate landslide risks, and incorporation of climate-resilient design standards that will ensure resilience, as described in above sections. Therefore, the operation adequately reduces the physical climate risks to the Project outcomes, and the project’s climate resilience and adaptation design considerations limit the exposure to an acceptable level of residual risk. 39. Assessment and reduction of mitigation risks: The activities financed by this project are either universally aligned or have a low risk of preventing the country’s transition to low-carbon development pathways, given its contribution to more efficient mobility in low-traffic zones and more sustainable transportation. The Project design is indeed incorporating: (i) the rehabilitation of rural roads which do not lead to capacity expansion for private motor vehicles in low-traffic zones; and (ii) the construction and maintenance of the storm water drainage system without expanding or promoting expansion into areas of high carbon stocks or high biodiversity areas. 40. There is no change to the implementation arrangements under the proposed AF. The Ministry of Agriculture (MoA) will remain the main entity responsible for the project. The PIU of the parent project will retain the overall responsibility over the coordination, supervision, fiduciary, and environmental and social safeguards compliance, as well as monitoring and evaluation of AF supported activities. The Ministry of Public Works (MPW) will be responsible for activities related to road infrastructure. The Infrastructure Implementation Unit (IIU) of MPW, which is implementing the IDA-financed transport projects, will continue to be responsible for implementing the civil works. C. Financial Management 41. The RETRAP AF will be implemented using the World Bank Directive: Financial Management Manual for World Bank Investment Project Financing Operations, and World Bank Guidance: Reference material - Financial Management in World Bank Investment Project Financing Operations (Catalogue Number OPCS5.05-GUID.02). The financial management arrangement of the second Additional Financing will remain the same as the original project. The World Bank conducted a simplified Financial Management (FM) assessment of the Ministry of Agriculture to determine continued adequacy of the existing financial management systems and to determine whether the PIU has acceptable FM arrangements in place that satisfy the World Bank’s minimum requirements. These arrangements would ensure that the implementing entity (a) use project funds only for the intended purposes in an efficient and economical way; (b) prepare accurate and reliable accounts as well as timely periodic financial reports; (c) safeguard assets of the project; and (d) have acceptable auditing arrangements. In view of this, FM aspects have been reviewed, and the FM arrangements (covering budgeting, accounting, financial reporting, internal control, fund flow, and auditing) currently in place under the parent project will be maintained. For the purposes of the AF, the PIU will: (i) update the current accounting manual; and (ii) customized the existing accounting software to include the account of the AF to generate the Interim Financial Reports (IFRs) 45 days after the end of each calendar quarter and financial statements annually. The General Audit Commission which is currently the external auditor for the parent project will conduct a consolidated audit of the parent, additional financing, and the trust fund and submit the audited financial statements Page 19 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) six (6) months after the end of the fiscal year. However, the second AF will have two additional designated accounts preferable opened at a commercial bank for the receipt of funds and will be managed by the Client. Appropriate checks and balance measures will be instituted within the PIU as requirements to provide reasonable assurance in this respect. 42. A retroactive financing clause has been introduced in the proposed AF for the acceptance of payments prior to the AF signature date, with specific provisions for withdrawals. Notably, expenditures are permissible up to certain aggregate amounts, offering flexibility in managing financial transactions. For payments made before the signature date but on or after June 1, 2023, under Category (8a) of Eligible Expenditures, an aggregate sum not exceeding $2,000,000 may be withdrawn. Similarly, for payments falling within Category (8c) of Eligible Expenditures, an aggregate amount not surpassing $4,000,000 may be withdrawn under the same conditions. This retroactive financing provision aims to accommodate financial needs while ensuring adherence to the stipulated limits and categories, providing a structured and accountable approach to project funding. 43. The overall FM risk of the project remains Substantial given among other things, the inherent risk associated with the systemic weaknesses in public financial management at the national level. D. Procurement 44. The procurement performance of the parent project is rated Moderately Satisfactory. All works, goods, and services for the AF will be procured according to the procurement arrangements of the parent project. All procurement activities will follow the Investment Project Financing (IPF) Procurement Regulations. The international procurement consultant hired under STAR-P will continue to provide procurement support to the national procurement consultant. The existing Project Procurement Strategy for Development (PPSD) for the parent project provides sufficient market analysis and recommendations for commencing procurement of the additional road works. The parent project PPSD has been updated to reflect the current market changes and price variations. Upon approval of the AF2, all procurement activities under the project will be implemented via electronic platform, Systematic Tracking of Exchanges in Procurement (STEP). E. Legal Operational Policies . Triggered? Projects on International Waterways OP 7.50 No Projects in Disputed Areas OP 7.60 No . F. Environmental and Social 45. RETRAP is implemented under the World Bank Environmental and Social Framework. The implementation and monitoring of environment and social risks management for the parent project has been rated Satisfactory while E&S risks remain Substantial. These ratings are based on the environmental and social performance of the original project till date. The client has the full complement of Environmental and Social Specialists at MoA and IIU as agreed in the parent project Environment and Page 20 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) Social Commitment Plan (ESCP). The ESIA for the 40 km road identified some potential project risks and adverse impacts on biodiversity including critically endangered chimpanzees along the proposed road corridor and these impacts are likely to be applicable to the 85 km corridor. The project will conduct surveys on biodiversity for the 40 km road under the parent project and the 85km road under the AF. Meanwhile, the Client continues to undertake appropriate actions to manage its Environmental and Social Management Framework, including: (i) Environment and Social Screening of proposed subproject activities using the project environmental and social screening checklist in the parent project Environment and Social Management Framework (ESMF) and preparation of the required instruments to manage potential risks; (ii) setting up of the district level Grievance Redress Committees (GRCs) and strengthening the capacity of the community level GRCs in project counties; and (iii) conducting environmental and social training plan for key PIU staff, selected grantees and other project stakeholders. The project has also developed and disclosed its Integrated Pest Management Plan as effectiveness condition of the first AF on the MOA website, 18TH January 2023. 46. The parent Project ESMF, RPF SEP, LMP are updated ninety (90) after project effectiveness and ESIA, ESMP for the 40 km road corridor will be updated ninety days (90) of after effectiveness adopting the Biodiversity Management Plan to include findings from the BFS. . The GoL will prepare ESIA, BFS and RAP for the proposed additional 85 km road segment and implement prior to commencement of civil works. 47. The project SEA/SH risk is substantial. A SEA/SH prevention plan will be updated ninety (90) after project effectiveness to mitigate potential SEA/SH risks related to the project interventions. This plan will be updated based on lessons from the ongoing SEA/SH mitigation approach developed and being rolled out in the Southeastern Corridor Road Asset Management Project (SECRAMP, P149279). It will include identification of appropriate mitigation and response mechanisms proportionate to the project SEA/SH risk level which include, at a minimum, identification of service providers for survivors of SEA/SH, establishment of a survivor-centric and confidential referral pathway, codes of conduct for project workers, and public outreach and education. 48. Gender. The parent project acknowledged that there is profound inequality between women and men in Liberia, which ranks 156th out of 162 countries on the inequality index between the sexes 20 . Liberia's significant strides toward economic growth, educational parity, and greater protections for women's rights have not yet translated to equal opportunities for women. Women still comprise the majority of laborers in the informal economy with 74 percent 21 of all female workers in the informal sector, and 41 percent of university-educated women working informally, compared to 24 percent of university-educated men. 49. Women rely heavily on agriculture for employment and income and have been greatly affected by the current food insecurity crisis. The underdeveloped and gender-blind infrastructure adds additional challenges for women particularly in rural areas. Investment in mobility infrastructure particularly in rural environments may help women increase their income, as it ensures access to markets where they can sell their products. As in the parent project, the monitoring and evaluation will collect sex-disaggregated data. 20 United Nations Development Program, UNDP, 2019 21 Council on Foreign Relations (CFR), 2022 Page 21 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) 50. The parent project has been gender-tagged. The proposed additional financing is expected to be gender-tagged since it will implement the same activities and will use the same gender indicators as the parent project. 51. Citizen Engagement (CE). The well-established CE mechanisms being implemented under the parent project will still apply. These mechanisms ensure an inclusive and participatory decision-making approach throughout processes, from selecting specific sites and ensuring the adequate targeting of vulnerable people and communities, to establishing solid management mechanisms that contribute to sustainability of investments and prevent future possible conflicts. The established citizen satisfaction survey and GRM will continue under the Additional Financing. Citizens affected by the construction activities along the proposed 85km road corridor will use the local community grievance redress structures to resolve complaints related to the proposed road construction and spot improvement activities. Citizen engagement will also be tracked through the indicators on beneficiaries satisfied with the delivery (timely and quality) of project benefits and percentage of grievances raised in the GRM that are addressed. 52. The project will also mobilize the local community for some aspects of the road works such as vegetation cover bolstering and soils stabilization that will be implemented using labor-based approach. In addition, participatory decision making will be embedded in the identification of the climate-resilient spot improvements to feeder roads leading to the corridor, and adequate arrangement will be made to ensure access/voice of women and other vulnerable groups are guaranteed in the participatory processes. 53. Climate Change. Investments in road rehabilitation under Component 3 will incorporate modern, climate-smart infrastructure standards that increase resilience. The project area is at high risk of river flooding, with potential for damaging and life-threatening river floods occurring and affecting the road network. Considering the dependence of rural areas on unpaved roads and the high susceptibility of unpaved roads to degradation under adverse weather conditions (e.g., high rainfall), the impacts of future climate change on the road network will be taken into consideration in the infrastructure design. Increased temperatures and frequency of intense precipitation will likely lead to compromised pavement integrity, increased instability, or loss of embankments, wash away of roads, affecting structural integrity, and damage and/or destruction of bridges and culverts. To minimize these risks, the project will enforce the use of bioengineering, which involves the use of vegetation either alone or in conjunction with other civil engineering structures including bituminous surface sealing and critical cross-drainage structures. A summary of mitigation and adaptation activities is included in Table 5 below. Table 5: Summary of mitigation and adaptation activities Climate Adaptation Climate Mitigation Component 3: Agri-Marketing and Road Infrastructure Investments (US$85.0 million) The objective of this component is to improve access to markets through the rehabilitation of existing roads, construction of short-span critical cross-drainage structures, and modernization of selected agri- markets. The AF will finance the scale-up of investments in infrastructure aiming to close the gap in road infrastructure which is a major constraint to ensuring food security in Liberia This subcomponent will reinforce climate- The proposed activity has the potential for climate adaptive and climate-resilient infrastructure mitigation: Bioengineering during road rehabilitation Page 22 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) Climate Adaptation Climate Mitigation Component 3: Agri-Marketing and Road Infrastructure Investments (US$85.0 million) The objective of this component is to improve access to markets through the rehabilitation of existing roads, construction of short-span critical cross-drainage structures, and modernization of selected agri- markets. The AF will finance the scale-up of investments in infrastructure aiming to close the gap in road infrastructure which is a major constraint to ensuring food security in Liberia along the main corridor by ameliorating the will stabilize slopes and mitigate landslide risks, aiding in impact of climate-induced weather hazards on carbon sequestration and reducing Greenhouse Gas the safety and economy of local communities (GHG) emissions. Renewable energy and energy-saving and the potential effects on last-mile infrastructure will be considered wherever possible, infrastructure—specifically, the effects of which will also reduce GHG emissions. Road climate-induced heavy rains and resulting development and rehabilitation will incorporate landslides, surface run-off from slopes, and modern, climate-smart infrastructure standards that increased water flows in gullies, drainage increase resilience. The project will enforce the use of channels, and rivers, which damage transport bioengineering, which involves the use of vegetation and market infrastructure. either alone or in conjunction with other civil Along the feeder roads, 100 percent of the engineering structures. project funding will go to the financing of climate-resilient measures (spot improvements works) to build strong resilience and redundancy of the rural/feeder road network in precise locations selected based on the vulnerability level of said road links. V. WORLD BANK GRIEVANCE REDRESS 54. Grievance Redress. Communities and individuals who believe that they are adversely affected by a project supported by the World Bank may submit complaints to existing project-level grievance mechanisms or the Bank’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project affected communities and individuals may submit their complaint to the Bank’s independent Accountability Mechanism (AM). The AM houses the Inspection Panel, which determines whether harm occurred, or could occur, as a result of Bank non-compliance with its policies and procedures, and the Dispute Resolution Service, which provides communities and borrowers with the opportunity to address complaints through dispute resolution. Complaints may be submitted to the AM at any time after concerns have been brought directly to the attention of Bank Management and after Management has been given an opportunity to respond. For information on how to submit complaints to the Bank’s Grievance Redress Service (GRS), please visit http://www.worldbank.org/GRS. For information on how to submit complaints to the Bank’s Accountability Mechanism, please visit https://accountability.worldbank.org. Page 23 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) VI SUMMARY TABLE OF CHANGES Changed Not Changed Results Framework ✔ Components and Cost ✔ Reallocation between Disbursement Categories ✔ Implementing Agency ✔ Project's Development Objectives ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Disbursements Arrangements ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ VII DETAILED CHANGE(S) COMPONENTS Current Component Name Current Cost Action Proposed Component Proposed Cost (US$, (US$, millions) Name millions) Improving the Enabling 3.00 No Change Improving the Enabling 3.00 Environment for Environment for Agribusiness Development Agribusiness Development Enhancing Competitiveness 18.00 No Change Enhancing 14.00 and Market Access through Competitiveness and Productive Alliances Market Access through Productive Alliances Page 24 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) Agri-Marketing and Road 31.50 Revised Agri-Marketing and 124.50 Infrastructure Investments Road Infrastructure Investments Project Coordination and 6.50 No Change Project Coordination 6.50 Management and and Management and Contingency Emergency Contingency Emergency Response Response Support to Food Security 30.00 No Change Support to Food 30.00 Security TOTAL 89.00 178.00 REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed REALLOCATION NEW IDA-69000-001 | Currency: USD iLap Category Sequence No: 1 Current Expenditure Category: GD,WK,NCS,CS,Tr,Oc Pt A,B.1,C.2&D.1 12,612,500.00 5,492,138.20 12,612,500.00 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: Matching Grants GD,NCS&TR PtB.2 11,500,000.00 3,824,801.82 11,500,000.00 100.00 100.00 iLap Category Sequence No: 3 Current Expenditure Category: GD,WK,NCS&CS Pt C.1 30,000,000.00 0.00 30,000,000.00 100.00 100.00 iLap Category Sequence No: 4 Current Expenditure Category: Emergency Expenditures Pt D.2 0.00 0.00 0.00 100.00 100.00 iLap Category Sequence No: 5 Current Expenditure Category: Refund of Preparation Advance 750,000.00 75,814.20 750,000.00 iLap Category Sequence No: 7 Current Expenditure Category: Interest Rate Cap or Collar premium Page 25 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) 0.00 0.00 0.00 iLap Category Sequence No: FEF Current Expenditure Category: FRONT END FEE 137,500.00 137,500.00 137,500.00 Total 55,000,000.00 9,530,254.22 55,000,000.00 Expected Disbursements (in US$) DISBURSTBL Fiscal Year Annual Cumulative 2021 0.00 0.00 2022 2,786,388.00 2,786,388.00 2023 5,910,368.00 8,696,756.00 2024 8,933,640.00 17,630,396.00 2025 11,110,280.00 28,740,676.00 2026 12,736,520.00 41,477,196.00 2027 13,089,616.00 54,566,812.00 2028 13,257,348.00 67,824,160.00 2029 13,224,592.00 81,048,752.00 2030 3,951,248.00 85,000,000.00 SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Risk Category Latest ISR Rating Current Rating Political and Governance ⚫ Moderate ⚫ Moderate Macroeconomic ⚫ Moderate ⚫ Moderate Sector Strategies and Policies ⚫ Low ⚫ Low Technical Design of Project or Program ⚫ Low ⚫ Low Institutional Capacity for Implementation and ⚫ Moderate ⚫ Moderate Sustainability Fiduciary ⚫ Substantial ⚫ Substantial Environment and Social ⚫ Substantial ⚫ Substantial Page 26 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) Stakeholders ⚫ Moderate ⚫ Moderate Other ⚫ Moderate ⚫ Moderate Overall ⚫ Moderate ⚫ Moderate LEGAL COVENANTS2 LEGAL COVENANTS – Rural Economic Transformation Project Second Additional Financing (P181083) Sections and Description The Recipient shall, within ninety (90) days of adopting the Biodiversity Management Plan, update the ESIA and ESMP, in form and substance acceptable to the Association. The Recipient shall, within ninety (90) days of effectiveness, update the ESMF, LMP, GBV/SEA/SH Action Plan, RPF, and SEP. Conditions Type Financing source Description Effectiveness IBRD/IDA The Recipient has updated, adopted and submitted to the Association, the Project Operations Manual, in form and substance satisfactory to the Association. Type Financing source Description Disbursement IBRD/IDA No withdrawal shall be made under Categories 3 and 8 (b) unless the Recipient has carried out a biodiversity field surveys, and prepared, adopted and disclosed the Biodiversity Management Plan in form and substance acceptable to the Association. Page 27 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) VIII. RESULTS FRAMEWORK AND MONITORING Results Framework COUNTRY: Liberia RESULT_NO_PDO Rural Economic Transformation Project Second Additional Financing Project Development Objective(s) To improve productivity and market access for small holder farmers and agri-enterprises for selected value chains in project participating counties. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_ PD O Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Improve Productivity and Market access for SHFs & Agri-enterprises for selected VCs in project PCs Farmers reached with agricultural assets or services 0.00 2,096.00 8,000.00 12,000.00 24,000.00 30,000.00 (CRI, Number) Action: This indicator has been Revised Farmers reached with agricultural assets or 0.00 1,258.00 4,800.00 7,200.00 9,600.00 12,000.00 services - Female (CRI, Number) Action: This indicator has been Revised Farmers reached with climate-smart agricultural 0.00 2,096.00 8,000.00 12,000.00 24,000.00 30,000.00 Page 28 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) RESULT_FRAME_TBL_ PD O Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 assets (Number) Action: This indicator has been Revised Increased yield of targeted agricultural produce by project- supported farmers, 4.80 10.00 10.00 20.00 30.00 30.00 disaggregated by targeted commodity (Percentage) (Percentage) Increased yield of cassava by project- supported 0.00 10.00 10.00 20.00 30.00 30.00 farmers (Percentage) Increased yield of rubber by project- supported farmers 0.00 10.00 10.00 20.00 30.00 30.00 (Percentage) Increased yield of pork by project- supported farmers 0.00 10.00 10.00 20.00 30.00 30.00 (Percentage) Increased yield of poultry by project- supported farmers 0.00 0.00 10.00 15.00 20.00 20.00 (Percentage) Increase in marketed volume of locally produced agricultural commodities by project supported FBOs, disaggregated 0.00 10.00 15.00 25.00 40.00 50.00 by targeted commodity (Percentage) Action: This indicator has been Revised Increase in volume of sales 0.00 0.00 10.00 35.00 55.00 70.00 of cassava produced by Page 29 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) RESULT_FRAME_TBL_ PD O Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 project-supported FBOs (Percentage) Action: This indicator has been Revised Increase in volume of sales of rubber produced by project-supported FBOs 0.00 0.00 10.00 25.00 40.00 50.00 (Percentage) Action: This indicator has been Revised Increase in volume of sales of pork produced by 0.00 0.00 10.00 25.00 40.00 50.00 project-supported FBOs (Percentage) Action: This indicator has been Revised Increase in volume of sales of poultry produced by 0.00 10.00 15.00 25.00 40.00 50.00 project-supported FBOs (Percentage) Action: This indicator has been Revised Reduction in transportation 0.00 0.00 0.00 30.00 40.00 50.00 time (Percentage) (Percentage) Rationale: Action: This indicator has been This indicator has been revised to reflect the additional 75 km road construction financed by IDA and the LRTF Revised Reduction in transportation time between Tappita and 0.00 0.00 0.00 40.00 45.00 50.00 Toe Town (Percentage) Page 30 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) RESULT_FRAME_TBL_ PD O Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Action: This indicator has been Revised Reduction in transportation time between Toe-Town 0.00 0.00 0.00 30.00 40.00 50.00 and Zwedru (Percentage) Action: This indicator has been Revised increase in traffic (passenger and freight) 0.00 0.00 5.00 10.00 15.00 20.00 volumes (Percentage) Action: This indicator has been Marked for Deletion Direct project beneficiaries 0.00 10,000.00 40,000.00 90,000.00 130,000.00 160,000.00 (Number) Action: This indicator has been Revised Number of females 0.00 4,000.00 16,000.00 36,000.00 52,000.00 64,000.00 (Number) Action: This indicator has been Revised Reduction in food insecure people in project targeted 0.00 10.00 15.00 20.00 25.00 25.00 areas (Percentage) PDO Table SPACE Page 31 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) Intermediate Results Indicators by Components RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Improving the Enabling Environment for Agribusiness Development Policies/ laws/ regulations supported (Number) 0.00 0.00 2.00 3.00 3.00 3.00 PPD organizations and FBOs receiving technical assistance 0.00 5.00 35.00 50.00 65.00 65.00 or training (Number) Project beneficiaries reached with new climate smart 0.00 1,000.00 6,000.00 8,000.00 14,000.00 16,000.00 technologies (Number) Enhancing Competitiveness and Market Access Through Productive Alliances Sub-projects prepared (Number) 0.00 25.00 75.00 100.00 120.00 150.00 Farmers adopting improved agricultural technology, disaggregated by gender 0.00 4,000.00 8,000.00 16,000.00 20,000.00 24,000.00 (Number) of which female (Number) 0.00 2,000.00 5,600.00 8,000.00 9,600.00 9,600.00 Farmers linked to off-takers (Number) 0.00 4,000.00 8,000.00 16,000.00 22,000.00 24,000.00 Women farmers accessing agricultural matching grants for 0.00 0.00 1,000.00 2,000.00 3,000.00 4,000.00 the first time (Number) Women in target areas accessing investment financing 15.00 15.00 20.00 25.00 30.00 30.00 for agriculture (all sources of finance) (Percentage) Page 32 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Agri-Marketing and Road Infrastructure Investments Climate resilient roads constructed (CRI, Kilometers) 0.00 0.00 20.00 70.00 100.00 115.00 (Kilometers) Rationale: Action: This indicator has been To reflect the additional 75 km road financed by IDA-LRTF and the climate-resilient design of the road Revised Roads constructed - rural (CRI, Kilometers) 0.00 0.00 10.00 30.00 40.00 40.00 (Kilometers) Action: This indicator has been Marked for Deletion Roads constructed - non- rural (CRI, Kilometers) 0.00 0.00 0.00 0.00 0.00 0.00 (Kilometers) Action: This indicator has been Marked for Deletion Commercial facilities/markets constructed/rehabilitated 0.00 0.00 5.00 10.00 10.00 10.00 (Number) Project Coordination and Management and Contingency Emergency Response Percentage of project related grievances that are addressed 0.00 70.00 75.00 80.00 85.00 90.00 (Percentage) Action: This indicator has been Revised Farmers using market 0.00 0.00 20.00 30.00 50.00 50.00 information (Percentage) Page 33 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Reports produced through MIS system (Number) 0.00 15.00 30.00 50.00 70.00 80.00 Beneficiaries satisfied with delivery (timeliness and quality) of project benefits 0.00 60.00 75.00 75.00 (percentage) disaggregated by gender (Percentage) Action: This indicator has been Revised Female Beneficiaries satisfied with delivery (timeliness and quality) of 0.00 30.00 40.00 50.00 60.00 75.00 project benefits (percentage). (Percentage) Support to Food Security Community infrastructure developed or rehabilitated 0.00 60.00 90.00 110.00 120.00 120.00 (Number) Project beneficiaries of the Cash-for-works program and 0.00 0.00 3,000.00 4,500.00 5,000.00 5,000.00 nutritional support (Number) Project beneficiaries of the Cash-for-works programme 0.00 0.00 1,200.00 1,600.00 2,000.00 2,000.00 and nutritional support (Female) (Number) Increase in subsistence 0.00 0.00 10.00 20.00 30.00 30.00 consumption (Percentage) Area cultivated for food production with the distributed 0.00 0.00 12,000.00 18,000.00 24,000.00 24,000.00 inputs by the beneficiaries (Hectare(Ha)) Page 34 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) IO Table SPACE Monitoring & Evaluation Plan: PDO Indicators Mapped Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection Administrative Farmers reached with agricultural assets Quarterly Farmers record CLF and Consultants record or services Farmers reached with agricultural assets or services - Female Survey among project Farmers reached with climate-smart Bi-monthly Survey CLF and Consultants beneficiaries agricultural assets Increase in yield per hectare recorded on participating farmers' farm. Farmer Increased yield of targeted agricultural Baseline information to be Productivity Farmer Productivity produce by project- supported farmers, Annual CLF/Service provider established 3 months after Recording Recording Template disaggregated by targeted commodity project effectiveness and Template (Percentage) on completion of the on- going baseline survey. Farmer Productivity Farmer Productivity Farmer Supported by Increased yield of cassava by project- Annual Recording Recording Template CLF supported farmers Template Farmer Farmer Productivity Farmers supported by Increased yield of rubber by project- Annual Productivity Recording Template CLF supported farmers Recording Template Page 35 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) Farmers productivity Farmers productivity Community level Increased yield of pork by project- Quarterly recording recording template Facilitator supported farmers template Farmer's Productivity Farmer's productivity Community Level Increased yield of poultry by project- Quarterly recording recording template Facilitator supported farmers template Increase in marketed volume of locally produced agricultural commodities by project supported FBOs, disaggregated by targeted commodity FBOs sales FBOs sales recording Increase in volume of sales of cassava Annaul recording FBOs supported by CLF template produced by project-supported FBOs template Volume of sales refers to FBOs sales the number of units that FBOs sales recording Increase in volume of sales of rubber Annual recording FBOs supported by CLF are sold in a given time template produced by project-supported FBOs template period FBO sales FBO sales recording Increase in volume of sales of pork Annual recording FBO supported by CLF template produced by project-supported FBOs template FBO sales FBO sales recording Increase in volume of sales of poultry Annual FBOs supported by CLF recording template produced by project-supported FBOs template Page 36 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) Reduction in transportation time Annual Survey Survey CLF/Service Providers (Percentage) Reduction in transportation time Annual Survey Survey CLF/Service Providers between Tappita and Toe Town Reduction in transportation time Annual Survey Survey CLF/Service Providers between Toe-Town and Zwedru This indicator measures the increase in volume of track as a result of improved Project Data Quarterly Traffic count on periodic increase in traffic (passenger and road. Baseline information Base and Consultants and CLF traffic count basis freight) volumes to be established 3 months Survey report after project effectiveness and on completion of the on-going baseline survey. For grants - receipt of inputs received For grants - For For grants - receipt of independent funds knowledge inputs received manager supported by sharing For knowledge sharing PIU Bi-annual activities: Direct project beneficiaries activities: For knowledge sharing training/activi training/activity log book activities: ty log book For roads: census results trainer/facilitator For roads: For roads: IIU number of population along the road corridor Page 37 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) For grants: receipt of "Beneficiaries: grant and For grants: input received For grants: receipt of knowledge recipients Independent fund For input received For (trainings, workshops) manager supported by Bi-annual knowledge knowledge sharing Number of females World Bank core indicator - PIU For knowledge sharing activities: SEE definition in the WB sharing activities: activities: training/activity log book core indicator guidelines" trainer/facilitator training/activi ty log book This indicator measures the reduction of food insecure Cadre people in the targeted harmonize, areas. The food insecure Twice per Cadre Harmonisé Cadre Harmonisé Reduction in food insecure people in Early warning people are those in phase year methodology Office, FAO, PIU project targeted areas systems 3. a and 5 based on the report Integrated Food Insecurity Phase Classification (IPC) ME PDO Table SPACE Monitoring & Evaluation Plan: Intermediate Results Indicators Mapped Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection Policies/Law/ Annual Policies/Law/Regulations PIU Policies/ laws/ regulations supported Regulations Training and Service providers or Training and technical PPD organizations and FBOs receiving Bi-annual technical external trainers (if assistance logs technical assistance or training assistance training sessions are logs outsourced) or by Page 38 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) project staff (if training is provided by them) Project/Activit Project/Activity Project beneficiaries reached with new Annual y Completion CLF Completion Report climate smart technologies Report Business Plans Service Service provider Bi-annual Business Plans Sub-projects prepared Provider supported by CLF Farmers received for CLF service Farmers adopting improved agricultural Annual inputs/equipment CLF - service provider provider technology, disaggregated by gender received Farmers receipt of CLF service Annual inputs/equipment CLF service provider of which female provider received CLF service Contracts and written Annual CLF service provider Farmers linked to off-takers provider agreements Administrative Administrative records Women farmers accessing agricultural Annual CLF/M&E records and project reports matching grants for the first time Women in target areas accessing Project Annual Administrative records CLF/M&E investment financing for agriculture (all reports sources of finance) Road Works Desk Review of Progress Climate resilient roads constructed (CRI, Bi-Annual Progress CLF/ IIU/Contractors Report, Site Inspection Kilometers) Reports Page 39 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) Road Works Desk review of progress Roads constructed - rural (CRI, Annual Progress CLF/IIU/Contractors reports, site inspection Kilometers) Reports Road Works Desk Review of Progress Length of road completely Roads constructed - non-rural (CRI, Annual Progress Reports and Site CLF/IIU/Contractors constructed in the non- Kilometers) Reports Inspection rural area Infrastructure works include: (i) construction of a number of open market sheds and small storage facilities; (ii) construction of selected infrastructure Contract that require specialized Commercial facilities/markets Bi-annual Completion CLF, contractor CLF, contractor handling for agricultural constructed/rehabilitated Report produce; and (iii) Construction of market internal path-ways, drainage infrastructure, and water and sanitation facilities Percentage of project related grievances Annual GRM GRM CLF, contractor that are addressed Annualy Reports Reports, site visits PIU, CLF Farmers using market information Bi-annual MIS Report MIS Report PIU Reports produced through MIS system Beneficiaries satisfied with delivery Sample survey of project Consultants and Annual Survey reports (timeliness and quality) of project benefits beneficiaries Community level (percentage) disaggregated by gender facilitator Page 40 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) Consultants, Third Party Female Beneficiaries satisfied with Report of Survey of female Annual Monitor and Community delivery (timeliness and quality) of survey beneficiaries level facilitator project benefits (percentage). The indicator measures the number of Community Agricultural Investment Administrative Community infrastructure developed or Plans successfully Bi-annual Project Database Facilitator/ PIU Record rehabilitated completed. These are plans developed through participatory decision- making processes. Number of project beneficiari Monitoring This indicator measures the es of the and County Level Facilitators, Project beneficiaries of the Cash-for- number of beneficiaries Administrative data cash-for- Evaluation M&E Officers and PIU. works program and nutritional support participating in the Labour- works report for-work program. programm e Bi- annually, Project beneficiaries of the Cash-for- after 6 Field Data Administrative records County Level Facilitators works programme and nutritional months of Collection support (Female) implement ation This indicator measures the Semi- Project Survey PIU M&E Officers Increase in subsistence consumption percentage Increase in annually Beneficiaries Page 41 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) consumption of traditional records products by farmers' families. This indicator captures the Satellite image for amount of cultivated area Semi- cultivated area, Design Area cultivated for food production with MIS database with the distributed seeds annually. study for command the distributed inputs by the beneficiaries by the beneficiaries in area. hectares ME IO Table SPACE Page 42 of 43 The World Bank Rural Economic Transformation Project Second Additional Financing (P181083) Annex 1: Project map November 7, 2023 Page 43 of 43