Page 1 INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: AC5457 Date ISDS Prepared/Updated: 07/19/2010 I. BASIC INFORMATION A. Basic Project Data Country: Togo Project ID: P118045 Project Name: Togo Agricultural Sector Support Project Task Team Leader: Christian Berger Estimated Appraisal Date: October 28, 2010 Estimated Board Date: March 29, 2011 Managing Unit: AFTAR Lending Instrument: Specific Investment Loan Sector: General agriculture, fishing and forestry sector (60%);Crops (40%) Theme: Global food crisis response (50%);Other rural development (20%);Rural services and infrastructure (15%);Rural policies and institutions (15%) IBRD Amount (US$m.): 0.00 IDA Amount (US$m.): 10.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER/RECIPIENT 4.00 Global Food Crisis Response Program 15.00 19.00 B. Project Objectives [from section 2 of PCN] The overall development objectives of the Bank-financed project is to strengthen the capacity of the M inistère de l'Agriculture, de l'Elevage et de la Pêche (MAEP, Ministry of Agriculture, Livestock and Fisheries) to manage the implementation of its national investment plan and prepare the move towards a full-fledged Sector-Wide Approach (SWAp) in the future, as well as to assist in improving productivity of targeted beneficiaries in selected sub-sectors (strategic food crops, traditional export crops, and freshwater fish farming). This will contribute to support the Government of Togo (GoT) in its over-arching goal to increase food security and reduce poverty. The proposed outcome indicators are: (i) number of farmers having access to critical inputs and services; (ii) adoption rate of improved production practices; (iii) productivity increases in targeted sub-sectors (rice, maize, cassava, cotton, coffee, cocoa, freshwater aquaculture); (iv) increased rates of sector budget execution and implementation of the activities of the Programme National d'Investissement Agricole et de Sécurité Alimentaire (PNIASA); (v) progress made towards favorable conditions to launch a full-fledged SWAp in the medium-term (e.g. medium- term expenditure framework in place, strengthened country systems, harmonized procedures). Page 2 C. Project Description [from section 3 of PCN] The project is expected to be a Specific Investment Lending (SIL) implemented over a period of 5 years (2011-2016), financed by an IDA grant of up to US$10 million and a Global Food Crisis Response Program (GFRP) grant of US$15 million. It will include two components: Component 1 is to support production activities in targeted sub-sectors; Component 2 will concentrate on MAEP's reform process and capacity building. In addition, the WAAPP (West Africa Agricultural Productivity Project) regional project would provide US$9 million to strengthen the national agricultural research system and extension services and cover the relevant PNIASA sub-program. A grant from IFAD (US$17 million) will be made available to promote productivity gains for food crops through farmers access to relevant input packages and post-harvest facilities, as well as to help quick-start the program through capacity building and technical assistance to the NCU (National Coordination Unit). Loans from the Banque Ouest Africaine de Développement (BOAD, West African Development Bank) (US$15 million) and Banque d'Investissement et de Développement de la CEDEAO (BIDC, ECOWAS Bank for Investment and Devleopment) (US$15 million) will be both starting in 2012 and essentially concentrate on the rehabilitation and development of rural infrastructures. Project components Component 1: Support to restoring production in three strategic sub-sectors (total Bank channeled contribution of US$17 million, including IDA contribution of US$5 million and GFRP contribution of US$12 million). Food crops production and traditional export crops are both considered essential for poverty reduction in the Togo context, whereas freshwater fish production shows potential for development and import substitution. Three separate sub-components are considered. Sub-component 1.1: Support to food crops development (GFRP contribution of US$8 million): Bank support will articulate with IFAD, quick start packages, and support building innovative market based mechanisms for access of cereal (maize, rice) and cassava crop production systems (including rotation with horticultural crops) to requested agricultural goods and services (fertilizers, certified seeds, post-harvest storage facilities, finance services, equipments, extension services, access to market). Such mechanisms would be based on partnerships between producers organizations, wholesalers, input distributors, financial institutions and other service providers. The capacity of producers organizations will be strengthened. In the case of rice where the challenge remains to mill quality rice and commercialize it at a competitive price, Bank support will help structure and better integrate the value chain. Project preparation will explore possibilities to finance downstream industrial rice milling and trading enterprises with IFC. Sub-Component 1.2: Promotion of Export Crops (IDA contribution of US$5 million): the Bank will continue to follow the policy dialogue between GoT and its internal/external partners and support MAEP, in collaboration with the private sector, in the design and implementation of necessary reforms for the three traditional cash crops value chains (cotton, coffee and cocoa). For cotton, the project would complement support under ERGG (Economic Recovery and Page 3 Government Grant) to find a strategic private investor, by strengthening the capacities of the inter-profession to develop and implement its work program. In the case of coffee and cocoa, the Bank would support the GoT to undertake a phytosanitary plan against common pests and help orchards renovation through farmers access to improved certified varietals. Sub-Component 1.3: Promotion of Freshwater Fish Farming (total Bank channeled contribution of US$4 million through GFRP): an aquaculture development plan will be designed to maximize impact on food security (through the development of an additional high quality protein source) with quick returns on investments. Priority is the promotion of freshwater fish farming (for short cycle tilapia and catfish production) through the development of small scale aquaculture ponds and/or basins. The project will encourage the establishment of fish farmers, facilitating access to production technologies, training, critical inputs, land security and to financial resources through local banks. This will be done through a partnership with existing leading enterprises specialized in alevins and feed production. The network of fish farms would be connected to downstream fish processing, conservation and commercialization enterprises. Component 2: Support to Capacity Building for Sector Coordination and SWAp development for PNIASA Implementation (total Bank channeled contribution of US$8 million, including IDA contribution of US$5 million and GFRP contribution of US$3 million). GoT is committed to implement a reform of the Ministry and has already started fulfilling its pledge to allocate at least 10% if its budget to the agriculture sector. This component will help strengthen the capacity of MAEP to manage the sector and efficiently coordinate the implementation of the PNIASA, while securing the transition to a full-fledged SWAp in the future. It will lead to increase the physical and financial execution rate of agricultural investments in Togo, and help minimize transaction costs. The component will work through two sub-components. Sub-component 2.1: Sector coordination and program management (total Bank channeled contribution of US$4 million, including US$3 million from GFRP): the project will strengthen the capacity of MAEP to coordinate the implementation of its food security and agricultural sector investment plan, through the (i) Cabinet adoption of a policy document, (ii) the implementation of sector coordination tools (planning, monitoring, evaluation, dialogue with other sectors), (iii) the strengthening of fiduciary capacities (procurement, financial management), and (iv) the improvement of the targeting and quality of public expenditures, including improved M&E capacity. This sub-component will also help GoT organize annual sector reviews with the donor community. In addition, the Bank will finance a few studies, such as irrigation/water development potential and a study to assist GoT establish a financial mechanism to be used to cover public expenditures required in PPP schemes for value chains promotion. Sub-component 2.2: Reform and capacity building of MAEP towards the development of a SWAp (IDA contribution of US$4 million): the project will support the implementation of reforms that would include restructuring MAEP and its subsidiary agencies (at central and regional/local levels) and strengthening MAEP#s capacities (human and technical resources, financial resources, equipments, management tools, agent motivation measures) to enhance Page 4 service delivery. This will be done with a view to enable GoT to fulfill conditions to embrace a full-fledged SWAp with its partners in the medium term, through the definition of a roadmap and assistance to achieve key milestones. The project will also assist in regular audits and public expenditure review of the agricultural sector, including in-depth studies for critical sub-sectors. Institutional arrangements Implementation: the project will be coordinated by the PNIASA-NCU under the responsibility of MAEP's General Secretariat. This existing unit will be responsible for the fiduciary aspects, progress reporting and overall management of the PNIASA. It will be strengthened during the early stages of the project, while the interface between the NCU and the operational directorates and agencies of MAEP (all placed under the authority of the General Secretariat) will be reinforced. Initial institutional arrangements could be revisited at the time of mid-term review. Recruitments funded by GoT budget are expected within the MAEP and its agencies such as ITRA (Institut Togolais de la Recherche Agricole) and ICAT (Institut de Conseil et d'Appui Technique), both at central and regional levels. As indicated in the Partnership Framework document, PNIASA implementation will be overseen by an Inter-ministerial Steering Committee CIPS (Comité Interministériel de Pilotage Stratégique), chaired by the agriculture Minister. Planning, budgeting and disbursements: activities to be financed through the first phase of PNIASA will be defined in an overall 5-year expenditure plan, with annual work plans and budgets providing further details. Since MAEP has no experience in sector approach, the initial 5-year plan and the following three annual work plans and budgets will be prepared with a focused technical assistance. Disbursements will be based on annual reviews. Monitoring and evaluation: implementation progress will be assessed during biannual joint supervision missions. Surveys will be conducted every year in all of the five regions. D. Project location (if known) The project is expected to operate on a nation-wide basis, i.e. undertake activities within all of the five administrative Regions of Togo where MAEP structures are always represented. E. Borrower’s Institutional Capacity for Safeguard Policies [from PCN] The recipient has some previous experience in using and applying Bank safeguard policies. Recently the Bank undertook an environmental and social safeguards training for Government officials including those from the Ministry of Environment. The project management unit will recruit an environmental and social specialist to follow up these issues as they arise during implementation. In addition, the safeguards specialists in the Bank team will guide and provide guidance to the PMU and the TTL as project evolves. F. Environmental and Social Safeguards Specialists Mr Abdoul-Wahab Seyni (AFTCS) Mr Africa Eshogba Olojoba (AFTEN) Page 5 II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered Yes No TBD Environmental Assessment (OP/BP 4.01) X The project will finance the construction of agriculture related infrastructure including promotion of freshwater fish farming, in pursuance of its project development objective. The potential impacts are likely to be small-scale and site specific, typical of category B projects. To successfully identify and manage potential adverse impacts on the environment from project funded activities such as those enumerated above, the Government will prepare an Environmental and Social Management Framework (ESMF). This will be disclosed in-country and at the Banks Infoshop on November 30, 2010 prior to project appraisal. Natural Habitats (OP/BP 4.04) X Forests (OP/BP 4.36) X Pest Management (OP 4.09) X The development of intensive agriculture through project activities may lead to increased use of fertilizers, pesticides or herbicides thus triggering the Pest Management Policy. A Pest Management Plan (PMP) will be prepared, reviewed and disclosed in-country and at the Bank's Infoshop before appraisal. Physical Cultural Resources (OP/BP 4.11) X Indigenous Peoples (OP/BP 4.10) X Involuntary Resettlement (OP/BP 4.12) X Given that the specific sites or impacts of envisioned physical impacts are not known, a RPF consistent with the OP.4.12 will be prepared by the borrower, reviewed and cleared by the Bank and disclosed in the country and at the world Bank Infoshop prior to appraisal. The RPF will be used as guide to conduct specific Resettlement Action Plans (RAPs) as needed if they relate to land acquisition or loss of economic activities issues, as well as compensatory measures to mitigate negative impacts on People Affected by the Projects (PAPs) Safety of Dams (OP/BP 4.37) X Projects on International Waterways (OP/BP 7.50) X Projects in Disputed Areas (OP/BP 7.60) X Environmental Category: B - Partial Assessment III. SAFEGUARD PREPARATION PLAN A. Target date for the Quality Enhancement Review (QER), at which time the PAD-stage ISDS would be prepared: 10/01/2010 B. For simple projects that will not require a QER, the target date for preparing the PAD-stage ISDS: N/A Page 6 C. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing 1 should be specified in the PAD-stage ISDS. All borrower's safeguards instruments will have to be prepared, reviewed, approved and disclosed in-country and at the Infoshop prior to appraisal. IV. APPROVALS Signed and submitted by: Task Team Leader: Mr Christian Berger 07/14/2010 Approved by: Regional Safeguards Coordinator: Ms Alexandra C. Bezeredi 07/14/2010 Comments: Sector Manager: Ms Karen Mcconnell Brooks 07/14/2010 Comments: 1 Reminder: The Bank's Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in-country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons. Page 7