The World Bank Burkina Faso Livestock Sector Resilience and Competitiveness Support Project (P178598) Project Information Document (PID) Concept Stage | Date Prepared/Updated: 06-Oct-2022 | Report No: PIDC33897 Jul 12, 2022 Page 1 of 14 The World Bank Burkina Faso Livestock Sector Resilience and Competitiveness Support Project (P178598) BASIC INFORMATION A. Basic Project Data OPS TABLE Country Project ID Parent Project ID (if any) Project Name Burkina Faso P178598 Burkina Faso Livestock Sector Resilience and Competitiveness Support Project (P178598) Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) WESTERN AND CENTRAL Jan 17, 2023 Mar 23, 2023 Agriculture and Food AFRICA Financing Instrument Borrower(s) Implementing Agency Investment Project Financing Burkina Faso Ministry of Agriculture, Livestock and Fisheries Proposed Development Objective(s) to improve the productivity, commercialization, and resilience of key sedentary livestock production systems for targeted producers in project intervention areas PROJECT FINANCING DATA (US$, Millions) SUMMARY-NewFin1 Total Project Cost 150.00 Total Financing 150.00 of which IBRD/IDA 150.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Development Association (IDA) 150.00 IDA Credit 150.00 Environmental and Social Risk Classification Concept Review Decision Jul 12, 2022 Page 2 of 14 The World Bank Burkina Faso Livestock Sector Resilience and Competitiveness Support Project (P178598) Substantial Track II-The review did authorize the preparation to continue Other Decision (as needed) B. Introduction and Context Country Context 1. A small landlocked economy, Burkina Faso is characterized by its modest economic size, with a total GDP of about US$17.9 billion, and rapid population growth, with one of the highest per capita birth rates in the world (3% annual growth). It is also one of the world’s poorest countries, with an extreme poverty headcount of 40 percent (8.5 million people) and an annual GDP per capita of just US$745 (2021). Arising from the legacy of its turbulent political history, together with a difficult environment and isolation from the main trade corridors, the country faces daunting development challenges. Less than 20 percent of the Burkinabe population have access to electricity (less than 1 percent in rural areas), less than one-third of adults are literate, and 75 percent of the rural population live further than 2 km from a road in good or fair condition. Food insecurity and malnutrition rates are also chronically high; some 3.45 million people (16.3% of the total population) are food insecure (IPC/CH Phase 3 or above)1. The country ranks 144th among 157 countries in the World Bank’s Human Capital Index. 2. Compounding the considerable development challenges that it faces; Burkina Faso is currently confronted by acute security and climatic threats. On the security front, the situation has deteriorated dramatically since 2015, with the expansion of a Sahel-wide political crisis from Mali into Burkina Faso. Since 2016, terrorism has caused numerous fatalities in three high-profile attacks in the capital city, Ouagadougou, together with smaller scale, but repeated, militant attacks in the northern, eastern, and western regions. Violence has created an unprecedented humanitarian crisis in the country (1.8 million people have been internally displaced as of December 2021, with most being women and children). Meanwhile, threatening livelihoods and exacerbating existing vulnerabilities, climate-change induced natural hazards are becoming more frequent and costly. Over the past 10 years, the country has faced two major droughts affecting over 5 million people. It is estimated that 34 percent of the country’s land area is already degraded as a result of climate change and desertification. This percentage is likely to grow over the coming two decades, given that the average temperature is set to rise by 2.3 degrees Celsius2. The agriculture and livestock sector faces frequent climate shocks including droughts, floods, heat waves, and dust storms. Climate change trends of increasing temperatures, evaporation rates, and heavy rainfall events may exacerbate these threats in coming years. 3. Despite these challenges and the COVID-19 pandemic, Burkina-Faso’s economy is showing signs of resilience and growth. The country’s economy rebounded strongly in 2021. Its growth is estimated at 8.5 percent. This solid performance is attributable to factors such as the recovery in services (+11.7%) and the steady increase in gold exports. However, agricultural production stagnated because of low rainfall. While exports grew by 6.5 percent in 2021, imports of hydrocarbons and mining equipment increased by 15.5 percent and were largely responsible for widening the current account deficit, estimated at 3.0 percent of GDP. The return to pre-COVID growth levels is expected to continue in 2022, as the economy is forecast to grow at a rate of 4.8 percent. Against the backdrop of insecurity, the January 2022 coup, and the war in Ukraine, growth is expected to be driven by the agricultural sector, services —including public administration—and gold exports, and reach its potential of about 5.3 percent in the medium term. Driven by an even 1 Food Crisis Prevention Network (RPCA). 2022. 2 Burkina Faso has experienced ‘quasi-drought’ conditions since the early 1970s. These conditions are most pronounced between November and December when humidity averages 10%, and in the north where rain only comes for two months out of the year. Burkina Fa so’s wet season is also characterized by heavy and often relentless rain that can wreak havoc on the country’s poorly constructed informal settlements disturb the entire water sector and destroy or reduce infrastructure services. Over the past 30 years, severe flooding has occurred repeatedly especially in the north and center of the country, resulting from successive drought periods. Jul 12, 2022 Page 3 of 14 The World Bank Burkina Faso Livestock Sector Resilience and Competitiveness Support Project (P178598) greater increase in food prices, inflation could worsen, before stabilizing at an annual average of around 4 percent toward the end of the year. In light of the security, humanitarian, food, and social challenges and the ongoing COVID-19 pandemic, the fiscal deficit could reach 6.6 percent of GDP in 2022. Its gradual return to the WAEMU ceiling of 3 percent is not expected before 2025. Sectoral and Institutional Context 4. Agriculture and livestock remain important components of the Burkina Faso’s economy. The sector accounts for 18.4 percent of GDP and about 60 percent of employment. It is dominated by subsistence production systems characterized by small farms, low crop and livestock productivity, limited diversification, and limited participation of formal private businesses in agricultural and agropastoral value chains. Rain-fed cereals (maize, millet and sorghum) represent two- thirds of the area cultivated and constitute the main staple food crops. Although production has increased by 20 percent over the past decade, the country is self-sufficient in cereals only three years out of four, and food security is tenuous. Cotton is the main cash crop, with production close to 700,000 tons of seed cotton, and plays a critical role for producers, as growing cotton is the main way for farmers to gain access to fertilizers through contract farming arrangements with the cotton companies. 5. Livestock remain an important export and contributor to GDP. Livestock represents over a third of Burkina Faso’s agriculture GDP and contributes to both food and nutrition security (practiced by 86% of the population). The national herd was estimated in 2019 at about 10 million cattle, 26.8 million small ruminants, 49 million poultry and 2.6 million pigs3. The national consumption of livestock products is approximately 46 million tons of red meat, 424 million liters of raw milk and 26 million eggs. The export value of live animals and that of hides and skins, more than compensate the milk and dairy, as well as chicken and egg imports, resulting in an overall positive trade balance for livestock products4. Moreover, the subsector importance is predicated on the following factors: (i) it remains the primary source of cash income (39 percent) for rural households; (ii) it serves as a stock of wealth to cope with climatic and economic shocks in view of its resilience to rebuild or restock quickly after climatic shocks, particularly drought; and (iii) it contributes to the intensification of farming activities as it provides for crop-livestock integration through provision of power for animal traction and manure for soil fertility. Three main production systems of livestock farming that coexist are: (a) pastoral systems characterized by the mobility of animals (extensive systems of small ruminants and cattle); (b) sedentary traditional production systems (under village conditions); and (c) sedentary improved systems (under modern conditions, mainly peri-urban semi-intensive and intensive poultry, pig, dairy production, and cattle fattening). The production systems (b) and (c) are the primary focus of this proposed operation to complement the Regional Sahel Pastoralism Support Project II (PRAPS II), an ongoing World Bank project (P173197), which is already targeting pastoral production systems. 6. While the livestock subsector has seen much improvement in recent years, a wide range of constraints still limit its development. The implementation of the National Policy for Sustainable Livestock Development (PNDEL, 2010-2025) and its action plan have led to noticeable progress in the livestock subsector: (i) increased livestock numbers by 20 percent (2003-2014); (ii) increased meat production by 49 percent (2003-2014); (iii) increased milk production by 48 percent (2010-2014); and (iv) increased poultry production by 30 percent (2003-2012)5. While these figures may be seen as substantial, the livestock subsector remains poorly developed. It is faced with a range of disabling conditions limiting its overall growth. Among others, these include: • Weak policy, institutional and technical support for the subsector: Current public funding for the subsector is 3 FAO Stats. 4 Meat value chain gains from export of alive animal and skin whose is estimated at US$104 million against US$13 million spent on animal products import especially milk (92.4% of imports) – Source: FAO, 2019. Africa, sustainable livestock 2050: Livestock growth, public health, and the environment: A quantitative assessment 5 Burkina-Faso National Program for the Rural Sector (PNSR II, 2016-2020). Jul 12, 2022 Page 4 of 14 The World Bank Burkina Faso Livestock Sector Resilience and Competitiveness Support Project (P178598) low (13.4%6 of the public agriculture expenditures) although its contribution to the primary sector GDP is estimated to 35%7. The institutions and the actors involved in the value chain are facing several constraints (i.e., governance of the Central Veterinary Medicines Purchasing Center (CAMVET), lack of technical and managerial capacity for emerging livestock inter-professions and weak extension and advisory services) that hamper their operations and, consequently, limit the development of the sub-sector. • Low levels of productivity: This is mainly related to low performance of animal species and stock (genetics); sub- optimal animal husbandry practices, poor animal health (pest and disease management), and low quality of livestock feed. • Limited value-addition and competitiveness due to sub-optimal supportive infrastructure equipment and difficulties accessing needed financing for investments in modern production, and processing, and marketing technology (including cold chains, market infrastructure, abattoirs, and food safety standards). A World Bank study completed in March 2018 indicated that the plethora of existing abattoirs points toward potential in the meat-processing industry. However, this has been hampered by a lack of quality abattoirs, “unfair� competition between formal and informal abattoirs, poor cold-storage facilities, poor logistics chains, and delays at the border8. • Socio-economic and environmental factors: With regards the socio-economic factors, this relates to insecure land tenure, farmer-pastoralist conflict, and gender inequality. With respect to the environmental factors, climate change and land degradation are impacting hugely on the sub-sector. Livestock in the Sahelian and northern Sudanese zone of the country face particular feed quantity and quality deficit. Climate change impacts and drying conditions in the north since the 1970s are further driving pasture degradation. Livestock producers are acutely exposed to unpredictable climate extremes and variability because of climate change. Precipitation variability makes the availability of forage and water unpredictable, affecting livestock productivity and pushing livestock producers to exploit more land in order to sustain their herds. Droughts, floods, and extreme heat increase livestock mortality and destabilize markets. 7. Gender gaps heavily influence women’s roles and prospects in the livestock sub-sector. Burkina Faso’s national gender policy and myriad policy documents for agriculture and livestock commit to gender equality9. Yet in practical terms, differences in the types of livestock owned by women and men, and in the resources that women and men can access, create barriers to women’s participation in the livestock sector. Women divide their time between agricultural and domestic tasks, spending as much as 16 hours a day in such work, including food processing and preparation. Few women own land, due primarily to socio-cultural factors. Women own fewer collateralizable assets that can unlock financing to invest in their current livestock enterprises or to buy higher-value large ruminants to gain a better position in the value chain. Differential access to services (extension advice, animal health) also limits the productivity of women’s livestock enterprises. Less information flows to women on new technologies and best practices, potentially putting their animals at greater risk and their livestock activities at a competitive disadvantage relative to men’s. The sub-sector is challenged by the Peste des Petits Ruminants (PPR), also known as Ovine Rinderpest or sheep and goat plague, which constitutes a health emergency due to its rapid spread. Since 60 percent of women in rural areas are involved in small ruminant rearing, these problems disproportionately affect female herders. 8. The country’s key development policy, the Second National Plan for Economic and Social Development (PNDES II), 6 FAO, 2017. Revue légère des dépenses publiques agricoles Burkina Faso, SAPAA. 7 USAID, 2016. Feed the Future Innovation Lab for Livestock Systems Burkina Faso: Enabling Policies for Livestock Brief 8 Transformation in Agriculture Value Chains in Burkina Faso, Synthesis Report, World Bank, March 2018. 9 Burkina Faso ratified the Convention on the Elimination of All Forms of Discrimination Against Women in 1984. The 1991 Constitution prohibits discrimination based on sex in employment and wages, and national legislation gives men and women equal rights in the area of marriage, inheritance, and access to land. However, these measures are not widely enforced and, therefore, have had a limited impact. The majority of women are unaware of their rights because of lack of information, illiteracy and the weight of tradition. Jul 12, 2022 Page 5 of 14 The World Bank Burkina Faso Livestock Sector Resilience and Competitiveness Support Project (P178598) 2021-2024, emphasizes agriculture and livestock as a key driver for economic growth with a focus on more productive, sustainable, and market-oriented production. PNDES II also highlights the increasing demand for livestock products nationally and regionally10 and calls for further sector growth through increased production, intensification, and value- added processing. Burkina Faso’s National Policy for Sustainable Livestock Development (PNDEL, 2010-2025) sets the framework and blueprint for livestock development. The overall objective of PNDEL is to enhance livestock contribution to national economic growth, as well as to food and nutrition security, and, in doing so, improve the living conditions of the Burkinabe population. PNDEL implementation is organized around four strategic pillars, namely: (i) capacity building of sector stakeholders; (ii) security and sustainable management of pastoral resources; (iii) enhanced animal productivity and production; and (iv) improved competitiveness and marketing of animal products. Moreover, the country’s Climate smart agriculture investment plan (CSAIP) adopted in 2020 prioritized investments in sustainable intensification of livestock production. The proposed project supports the implementation of these strategies and plans including (i) conservation and selection of local breeds, (ii) control of emerging and re-emerging animal diseases related to climate change, (iii) full crop-livestock system integration, (iv) establishment of pastoral infrastructure and equipment and (v) capacity building in livestock intensification11. Relationship to CPF 9. The proposed project contributes to Burkina Faso’s FY18-FY23 Partnership Framework (CPF) that supports the country accelerate the structural transformation of its economy in order to create productive employment and meet the country’s development challenges. The project is aligned with the Focus Area 1 “Accelerate sustainable private-sector led growth for job creation� and its Objective 1.1: “Improve agriculture productivity and agribusiness value chains in targeted areas�. The proposed project lies at the heart of Burkina Faso’s household farm economy. It sets the foundation for fundamental changes in the livestock subsector. Indeed, the strengthening of the livestock value chain will result not only in increased on-farm production (sustainable intensive livestock production); it will also result in increased value- added through processing (i.e., meat, dairy, and by-products), hence contributing to food and nutrition security, as well as expanded income-generating and rural and urban employment opportunities (especially for women and youth). The project will help the subsector become more competitive, sustainable, and private sector-led. This is expected to result in enhanced income for livestock producers, the bulk of whom are smallholders. The project is also aligned with the CPF emphasis and on the WBG IDA19 commitments including the focus on climate change. 10. The project is also aligned with the recommendations of the 2022 Performance and Learning Review (PLR) of the CPF. Based on those recommendations, the Project focuses on supporting sustainable development in rural areas with a deeper emphasis on livestock production, productivity, and efficiency of the value-chain. A particular focus will be on strengthening and building the capacity of livestock producer organizations, ensuring women and youth inclusion in the value chain, and mainstreaming climate change in all project interventions. 10 Population growth, urbanization and economic development are expected to extensively transform Burkina Faso’s society and its livestock sector in the next three decades. Between 2015 and 2050, Burkina Faso’s population will more than double and reach about 45 million people. By 2050, the number of people living in cities and towns will have increased from 28 percent today to 50 percent, that is the urban population will increase from 5 million to 22 million in the next decades. Meat and milk consumption are expected to increase by about 775 and 835 thousand tones, respectively, and in 2050 urban consumers will contribute about 61 and 65 percent to total meat and milk consumption, respectively, vis-à-vis 37 and 42 percent today (Source: http://www. fao.org/global-perspectives-studies/en/). 11 The World bank, 2020. Climate-Smart Agriculture Investment Plan for Burkina Faso, 250 p. Jul 12, 2022 Page 6 of 14 The World Bank Burkina Faso Livestock Sector Resilience and Competitiveness Support Project (P178598) C. Proposed Development Objective(s) 11. The proposed Burkina Faso's Livestock Sector Resilience and Competitiveness Support project (12PRECEL by its French acronym)13 Development Objective (PDO) is "to improve the productivity, commercialization, and resilience of key sedentary livestock production systems for targeted producers in project intervention areas". Key Results (From PCN) • Increase in livestock productivity in targeted production systems carcass weight (kilograms), liters of milk per cow per lactation). • Increase in livestock resilience to climate hazards in targeted production systems (percentage of survival rate improvement, sex- and products-disaggregated). • Share of beneficiary livestock producers' stock that is marketed (Percentage) (products-disaggregated, Number). • Direct project beneficiaries (CRI, sex-disaggregated, Number). D. Concept Description 12. The proposed Project will be structured as an Investment Project Financing (IPF), funded by IDA in the amount of US$150 million over a six-year period. It will build-on the achievements of the Burkina Faso Livestock Sector Development Support Project (P159476 – PADEL B – see Box 1 below) - and complement the on-going Regional Program for Pastoralism in the Sahel (P173197 - PRAPS II). It will support the development of selected livestock value chains (including meat, milk, eggs)14 which: (i) offer evidence-based market demand both for domestic and regional markets; (ii) fit within the country’s overall strategies (PNDES II and PNDEL) for poverty reduction and job creation (women and youth), including their impact on the rural economy – diversification of incomes; (iii) can contribute to agriculture GDP as they present important opportinities in terms of value-addition and increased exports, prospects for attracting private investments, and potential for local SMEs to be integrated in regional markets. The Project will also support the promotion of the pork, fish and honey value chains as they allow for quick generation of income for women and youth. 13. The Project will address the binding constraints to sedentary livestock development (both traditional and improved production systems) with a focus on the following: (i) strengthening the policy, institutional foundations, and service delivery for the subsector; (ii) improving its productivity, value-added and competitiveness; and (iii) limiting climate change negative impact on livestock production. To achieve this, the project will adopt an integrated approach to developing selected value chains - from on-farm production to marketing and distribution (including processing, cold storage, and transport). A specific focus would be given to WB corporate cross-cutting priorities; especially (a) gender issues and empowerment of vulnerable groups (women and youth) and adherence to social safeguards15; (b) mitigation and adaptation to climate change and adherence to environmental safeguards, as climate change is becoming a severe constraint to livestock production in Burkina Faso; and (c) public health bearing in mind that many marketed livestock 12 Resilience is the capacity of vulnerable households, families, communities, and livestock systems to face uncertainty and the risk of shocks, to withstand and respond effectively to shocks, and to recover and adapt in a sustainable manner. Shocks may be driven by climate change, markets, environmental degradation, conflict, or a health crisis to which the livestock system is exposed. 13 Livestock Resilience and Competitiveness Project 14 IFC identified the livestock value chain as key subsector to grow Burkina Faso’s private sector and harness it to bolster eco nomic resilience (WBG, Creating Markets in Burkina Faso, Country Private Sector Diagnostic, 2019). 15 The tool-kit developed by IFC “Investing in Women along Agribusiness Value Chains will be used to derive Gender-Smart-Solutions for the proposed project. Jul 12, 2022 Page 7 of 14 The World Bank Burkina Faso Livestock Sector Resilience and Competitiveness Support Project (P178598) products do not currently meet the required safety standards. 14. In addressing these constraints and in partnership with IFC, the Project will include a spectrum of actions for Maximizing Finance for Development (MFD) by: (i) improving the policy and regulatory environment related to sedentary livestock production systems; (iii) considering options for using public financing to improve private incentives and to reduce transaction costs and risks; and (iv) supporting essential public goods and services such as human capital, food safety control systems and complementary public infrastructure. 15. The Project will support strategic investments in the main livestock production basins of the country to: (i) increase productivity and intensification by creating dedicated livestock production intensification areas with improved management of animal feed, health, and breeding. This will include support to improve feed (i.e., mowing and storing hay and crop residues, improving feed storage infrastructure, increasing irrigation for fodder production, and increasing overall fodder production); (ii) improve animal health by largely focusing on disease control including monitoring and controlling cross-border diseases. A focus would be on increasing vaccination and deworming, strengthening disease surveillance, and increasing the capacity of the national livestock laboratory to analyze and diagnose diseases; (iii) increase value-added production and access to markets across the value-chain by improving access to inputs, equipment and financing needed for production, processing, and marketing; development and dissemination of production and processing standards; improving cold chains and market infrastructure; and promoting agricultural entrepreneurship; and (iv) improve climate information services and strengthening early warning systems targeting livestock producers to mitigate the impact of climate change. Figure 1 below illustrates the project approach and how the planned interventions will support improving productivity, commercialization, and resilience of targeted livestock value chains in Burkina Faso. Figure 1: Project intervention logic and results chain 16. Based on the above approach, the Project is designed with two interrelated technical components: (i) Enabling environment and support services for livestock promotion; (ii) Sedentary livestock value chains development. A third project component would focus on crisis prevention, project coordination and monitoring and evaluation (M&E). The Contingent Emergency Response Component (CERC) would be fourth component and would provide the institutional support to strengthen MARAH’s capacity to respond to such emergencies and the related funds to intervene in the event Jul 12, 2022 Page 8 of 14 The World Bank Burkina Faso Livestock Sector Resilience and Competitiveness Support Project (P178598) of a severe crises. Component 1: Enabling environment and support services for livestock promotion (US$ 45 million) 17. The objective of Component 1 is to strengthen the enabling policy and regulatory environment and institutional foundations for improving the performance and governance of the sedentary livestock production systems in Burkina Faso. Project support will focus on: (i) strengthening the subsector livestock policy and regulatory framework, planning, and monitoring; and (ii) improving the capacity and capability of key institutions in the sector to deliver public goods and services essential for improving its productivity (animal health and husbandry management), increasing the resilience of the livelihoods anchored in the subsector (including traditional production systems under village conditions), reducing competition for natural resources, and reducing the sector’s negative externalities. In implementing these interventions, due regard will be given to addressing gender inequalities and mainstreaming climate change in promoted policies. The component will support the following three synergistic subcomponents: 18. Subcomponent 1.1: Support to Policy Formulation, Planning, and Capacity Strengthening (US$ 10 million): S.C.1.1 will strengthen the policy environment, knowledge base, and human resource capacity of the livestock subsector as a springboard for enhancing targeted livestock value chains performance. It will finance the following activities: • Preparation of an operational strategic Livestock Master Plan (LMP) in partnership with institutions such as the International Livestock Research Institute (ILRI) or other relevant technical partners 16. • Reviewing and updating of national livestock sector policies on feeding, breeding, dairy, and animal health. This will include promoting a transparent governance structure of vaccine fund and vaccine import regulations. • Improving sanitary regulations (quality standards and safety reforms) to facilitate livestock and meat exports, including the implementation of One-Health approaches to pandemic and other public health risks mitigation. • A capacity-building program for the Ministry of Agriculture, Livestock and Fisheries (MARAH) to improve livestock policy and regulation formulation, enforcement, monitoring and evaluation (M&E), and technical knowledge related to the different production systems. This will include training of a pool of specialized staff (veterinarians and others) able to manage the development of selected value chains; among others, improving their capacity to monitor food safety of facilities (slaughterhouses, milk collection centers, etc.). 19. These activities will be rolled-out with due consideration to addressing gender inequality and mainstreaming climate change adaptation and mitigation objectives across all relevant policies and strategies. 20. Subcomponent 1.2: Support to Animal Husbandry and Advisory Support Services (US$ 15 million): S.C.1.2 will build livestock producers’ resilience to climate change and reduce the sector’s GHG emissions by improving the availability and adoption of superior livestock breeds and promoting Good Animal Husbandry Practices (GAHPs), and feed resources adapted to the diversity of sedentary livestock production systems. It will finance four sets of activities: • The development and implementation of a genetic resource management strategy, with large ruminants as a priority. This strategy will build on PADEL-B’s achievements and will fill the gaps of remaining needs in terms of (i) building (or rehabilitating) and equipping the national breed improvement center (CMAP)17, and (ii) strengthening the technical capacity of breed improvement extension agents to guide breed selection and improvement (for meat and dairy production) and increase access to services for farmers. • The development of user-friendly, comprehensive extension training materials (including digital guides) on 16 Livestock Master Plans are developed through a systematic process using global reference tools available in the Livestock Sector Investment and Policy Toolkit (LSIPT). See https://www.fao.org/3/ca7635en/CA7635EN.pdf and https://www.ilri.org/livestock-master-plans. 17 CMAP (Centre de multiplication des animaux performants) was created in 1975. It is subdivided into several stations including the Sahel (in Sambonaye), the West (in Samandeni, Banankeledaga and Toundoura), the East (in Kikidéni) and the Center (in Loumbila and Komki Ipala). Jul 12, 2022 Page 9 of 14 The World Bank Burkina Faso Livestock Sector Resilience and Competitiveness Support Project (P178598) GAHPs. This activity will scale-up innovation platforms undertaken under PADEL-B with the aim at enhancing technology dissemination, linkages, and networking between livestock value chains’ stakeholders. It will develop training materials covering targeted livestock value chains and incorporate approaches for climate change adaptation and mitigation. Farmer Field Schools will also be supported to facilitate applied research and learning for groups of livestock keepers. Technical support for breed improvement and the introduction of GAHPs will give preference to female producers and be adapted to their needs, to overcome the challenges and risks that often limit women’s experimentation with new technology. • The promotion of improved feed production techniques (the use of agricultural by-products, composition of balanced feed, feed storage technologies); and improved feeding practices adapted to animal needs, with potential to reduce methane production. These activities will be associated with training of provincial-level extension agents to use the new materials, guides, and approaches to improve service delivery, including approaches to close gender gaps in livestock ownership and value-chain position. 21. Subcomponent 1.3: Support to Animal Health Services Strengthening (US$ 20 million): S.C.1.3 will (i) strengthen the zoonotic and contagious animal diseases surveillance and control systems in the country, including laboratory diagnostic capacities; (ii) strengthen the delivery of livestock health services by supporting veterinary services and achieving an appropriate balance between public and private sector and professional and paraprofessional staff, as defined by the World Organization for Animal Health (OIE); and (iii) improve the coordination between animal, human, and environmental health services, as embodied in the One-Health concept. To achieve, the project will build on PADEL-B results and will finance the following activities: • Strengthening of the surveillance and control systems for emerging and other priority animal diseases through field epidemiology training program in favor of public and private veterinary services, and sensitization of farmers is related issues. • Procurement of vaccine acquisitions and vaccination campaigns against Contagious Bovine Pleuropneumonia (CBPP), Foot and Mouth Disease (FMD) in cattle, Newcastle disease and Fowl Pox in poultry, as well as Small Ruminant Pest (Peste des Petits Ruminants: PPR) due to their particularly severe impact on livelihoods. This will also include a sensitization program targeting livestock keepers and support aiming at adoption of bio-security measures against African Swine Fever (ASF)18. • Strengthening of CAMVET’s ability to fight against counterfeit veterinary drugs and reduce disruption of drugs availability and support its governance structure. • Support for the delivery of livestock health services. This includes short-term training, logistical support and equipment to decentralized Veterinary offices, as well as develop and support mechanisms for establishing private veterinarians in rural areas. 22. Component 2: Livestock Value Chains Development (US$ 90 million) Component 2 builds on improvements in productivity arising from investments under Component 1 (improved policies, breeds, animal health, and GAHPs) to expand overall production of targeted value-chains and livestock products (i.e., milk, eggs, meat) and reduce imports of those commodities. Building on PADEL-B (and PRAPS)’s results, the project will aim to modernize targeted livestock value chains by fostering a stronger commercial/market orientation among small and medium producers, encouraging increased private investment, and the highest level of appropriate value addition, while mainstreaming climate change adaptation and mitigation measures. Project support will be provided under the following interlinked subcomponents: 23. Subcomponent 2.1: Support for Livestock Infrastructure and Market Development (US$ 40 million): S.C.2.1 will support 18Burkina Faso participates in the global PPR eradication program, and under the PRAPS-2 will receive support to develop national strategic plans for PPR eradication and Contagious Bovine Pleuropneumonia (CBPP) control, harmonized with plans developed by other PRAPS-2 countries. Jul 12, 2022 Page 10 of 14 The World Bank Burkina Faso Livestock Sector Resilience and Competitiveness Support Project (P178598) the MARAH and local authorities to establish or rehabilitate essential livestock infrastructure (e.g., livestock common assets for value addition, livestock markets, slaughter facilities, etc.) in agreed locations subject to an infrastructure inventory and needs assessment. The project will finance the following activities: • Common assets for value addition (milking equipment, cooling centers, transport, services, and so on) that also serve to increase resilience and mitigate climate change. These investments will benefit primary livestock producers which will be organized into viable groups (cooperatives, associations, interprofessions, and the like in line with the legal framework of OHADA). They will be associated with appropriate training and advisory services, inter alia training in group dynamics to promote good governance, strategic planning, business management and enterprise development, M&E, and operation and maintenance. • Support for climate-smart upgrading/establishment of livestock markets with perimeter fencing, simple administrative buildings, water sources, weighbridges, paddocks, loading ramps, and veterinary outposts, all with the aim of improving animal welfare and marketing efficiency. • Support to rehabilitate/upgrade a network of strategically located abattoirs that will be operated under improved food safety, environmental, and public health regulations. Prior to construction, assessments will be conducted to explore new models for operationalizing these abattoirs—for example, concessions, public-private partnerships (PPPs), or fully private operators. • Development of an integrated market information system which takes advantage of digitalization advances to reach all livestock actors. 24. Subcomponent 2.2: Support to Productive Investments along Targeted Livestock Value Chains (US$ 50 million): This subcomponent aims to de-risk investments in livestock value chain (primarily in the beef, dairy, sheep, goats, pigs, and poultry) by facilitating access to finance and related advisory services. It will support the following activities: • A Livestock Improvement Financial Facility (LIFF) which will be created to allow eligible livestock producers (individuals, groups, or cooperatives) and other livestock value chain stakeholders to access finance for productive livestock investment packages (i.e., sub-projects). These packages would include, inter alia, essential infrastructure (e.g., cattle handling facilities, milk collection centers, feedlots, grass fodder production methods, etc.), enhanced genetic merit livestock (e.g., grade dairy cattle, pigs, goats), access to improved services (e.g., veterinary, artificial insemination, community livestock/animal health worker training), marketing and value addition activities (cold-storage facilities, transport vehicle, meat/dairy processing equipment, etc.). • The provision of business development services through dedicated technical assistance to enable targeted livestock value chain actors to develop their entrepreneurial capacity, business plans that build climate resilience into their operations, and improve their access to finance and markets. Viable businesses will be introduced to the LIFF as well as other lenders and investors to crowd in private capital. 25. In implementing the LIFF, the project will: (i) adopt and upscale the Productive Partnerships approach piloted under PADEL-B in close collaboration with Partner Financial Institutions (PFIs), (ii) support public-private investments, (iii) provide matching grants for smallholder livestock producers, especially women and youth, and (iv) support establishing credit lines within microfinance institutions and selected PFIs through a special window for livestock value chains financing. The latter should enable viable and bankable firms across the livestock value chains to boost the value chain’s productivity, enhance its resilience, innovate in integrating reduction of its emissions footprint, and upgrade its performance through access to long-term debt (i.e., to facilitate long-term investments in fixed assets, advanced technology, or equipment that can also serve as security for the financing). The project may also finance microfinance institutions and commercial banks for technical assistance of risk analysis, beneficiaries training and advice during the implementation of the sub-projects. The detailed description of LIFF and its use will be elaborated during project preparation. Jul 12, 2022 Page 11 of 14 The World Bank Burkina Faso Livestock Sector Resilience and Competitiveness Support Project (P178598) 26. Cross GPs collaboration between Agriculture and Food Global Practice (AgGP) and Finance, Competitiveness & Innovation Global Practice (FCI) as well as with IFC (International Finance Corporation) will be instrumental in combining expertise in agriculture and finance for livestock private sector development to foster growth and maximize finance for development. 27. Component 3: Project Management And Coordination (US$ 15 million) Component 3 will strengthen crisis preparedness and management mechanisms for the project-targeted value chains; it will also support project implementation and coordination capacities. It will support the following activities: • Risk Prevention: The objective of this activity will be to strengthen the readiness of relevant institutions to face emergencies and manage risks and crises related to the livestock sector and marketing base. One important focus would be to cover losses in case of drought affecting production or major market disruption due to external events with an appropriate livestock insurance mechanism, etc. The project will support: (i) stock taking and synthesis of the results of similar experiences in other countries, (ii) carry out livestock insurance feasibility studies, (iii) designing and support a suitable livestock insurance product (v) develop a capacity building strategy for all stakeholders (relevant government institutions, insurers, distribution channels, farmers), (vi) establish a product deployment strategy (regulatory framework including public policy dialogue). • Institutional support and project management: The objective of this subcomponent is to ensure efficient and timely delivery of project resources in accordance with its objectives. It will support the establishment, operation, equipment, and training of project coordination offices at both national and provincial levels, as well as the operational costs of the national Project Steering Committee (PSC). The component will also finance: (i) M&E activities including regular impact evaluation studies and audits; management and oversight of safeguards issues; and (iii) preparation and implementation of a communication strategy. 28. Component 4: Contingent Emergency Response Component (IDA US$0.0 Million) Component 4 is a mechanism for financing eligible expenditures in the event of a crisis and an emergency precipitated by a natural disaster. Activation of this component allows funds to be disbursed rapidly to reduce damage to infrastructure, ensure business continuity, and recover more rapidly from a disaster. Following a major disaster, the affected participating country may request that the World Bank channel resources from other project components into the CERC. As a condition for disbursement, an Emergency Response Manual will be developed for each country, stipulating the fiduciary, safeguards, monitoring, and reporting requirements related to invoking the CERC, as well as any other essential coordination and implementation arrangements. Legal Operational Policies Triggered? Projects on International Waterways OP 7.50 No Projects in Disputed Areas OP 7.60 No Summary of Screening of Environmental and Social Risks and Impacts . 29. The scope of works associated with the project activities could generate adverse environmental and social risks and impacts such as the risk of exclusion of certain vulnerable groups including women, youth, and rural communities, in consultation processes and their risks of lack of access to project benefits, resource efficiency and pollution prevention and management (sourcing of raw materials for civil works, water and energy use, dust, noise, potential contamination of water sources due to construction waste management mainly and Occupational and community health and safety as well as human security. Under component 2, the project will also establish grants that will finance investment projects Jul 12, 2022 Page 12 of 14 The World Bank Burkina Faso Livestock Sector Resilience and Competitiveness Support Project (P178598) for livestock value chains through a Financial Intermediary. The Capacity of the FI will be assessed as per the requirements of ESS9. A screening process will be put in place to ensure that the E&S risks and impacts associated with these activities will be assessed and mitigated addressed appropriately. . CONTACT POINT World Bank Ernest Ruzindaza, Elisee Ouedraogo Senior Agriculture Economist Borrower/Client/Recipient Burkina Faso Implementing Agencies Ministry of Agriculture, Livestock and Fisheries Innocent Delwende Kiba Minister innokiba@yahoo.fr FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects APPROVAL Task Team Leader(s): Ernest Ruzindaza, Elisee Ouedraogo Approved By APPROVALTBL Practice Manager/Manager: Jul 12, 2022 Page 13 of 14 The World Bank Burkina Faso Livestock Sector Resilience and Competitiveness Support Project (P178598) Country Director: Maimouna Mbow Fam 12-Oct-2022 Jul 12, 2022 Page 14 of 14