PROJECT INFORMATION DOCUMENT (PID)
APPRAISAL STAGE
Report No.: PIDA11653
Public Disclosure Copy
Project Name Zambia COMACO Landscape Management (P144254)
Region AFRICA
Country Zambia
Sector(s) Forestry (28%), General agriculture, fishing and forestry sector
(35%), Agro-industry, marketing, and trade (24%), Animal
production (13%)
Theme(s) Other environment and natural resources management (13%),
Biodiversity (15%), Land administration and management (25%),
Rural non-fa rm income generation (35%), Rural markets (12%)
Project ID P144254
Borrower(s) COMACO
Implementing Agency COMACO Ltd
Environmental Category B-Partial Assessment
Date PID Prepared/Updated 28-Oct-2014
Date PID Approved/Disclosed 03-Nov-2014
Estimated Date of Board 12-Jan-2015
Approval
Decision
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I. Project Context
Country Context
A. Country Issues
1. Country Context: With strong growth in the last decade, Zambia has reached lower middle
income status. However, the economy remains mainly dependent on copper and more than 60
percent of Zambians live below the poverty line. Human development indicators are below the
Sub-Saharan Africa average. Over the past decade the Gini coefficient worsened from 0.47 to 0.52,
indicating the increasing disparity in income distribution. The potential and the need to increase
agricultural productivity and develop the private sector remain huge.
2. Climate vulnerability mitigation in Zambia is critical. Flood and droughts have increased
in frequency over the past three decades, costing the nation an estimated 0.4 percent in annual
economic growth. These trends are expected to intensify in the future—projected temperatures are
expected to increase by 3 to 5 degrees Celsius by 2100, with average precipitation declining during
the early rainy season (October to December) and intensifying thereafter. Without adaptation,
rainfall variability alone could keep an additional 300,000 people below the poverty line over the
next decade, and reduce annual GDP growth by 0.9 percent (World Bank 2013 ). The proposed
project fits with the Sixth National Development Plan stated objectives: (i) to accelerate
infrastructure development, economic growth and diversification; (ii) promote rural investment and
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accelerate poverty reduction; and (iii) enhance human development, through a low carbon
development pathway to meet the twin objectives of mitigation and adaptation.
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3. Both deforestation and climate change, if left unaddressed, will exacerbate poverty and
curb economic growth and will make it more challenging for Zambia to achieve MDG 7 on
environmental sustainability. Nearly 66 percent of Zambia's land area is classified as forests but
most of the resource is highly degraded and deforestation is occurring at 0.33 percent a year (WDI
2012 ). The poorest and most vulnerable tend to live in districts most exposed to frequent droughts
and floods. With livelihoods that are highly dependent on climate sensitive agriculture and natural
resources, they also have a low capacity to adapt.
4. Despite robust annual growth in the last decade, poverty, particularly in the rural areas
remains stubbornly high. The effect of economic growth on overall poverty reduction has been
small, as benefits of growth have largely accrued to those already above the poverty line. Growth
was driven by industries such as mining, construction and financial services and did little to create
jobs and expand opportunities beyond the small labor force already employed in these industries.
The urban-centered growth also did not generate better incomes, health, nutrition and key services
for the majority of Zambians living in the rural areas and dependent on agriculture. Rural poverty
at 74 percent is more than double the urban poverty of 35 percent. Almost 90 percent of Zambians
below the extreme poverty line are in rural areas, where the poverty gap ratio is far higher (20
versus 3.7 percent in urban areas) (World Bank 2013 ).
5. The Government's capacity for undertaking public-private partnerships (PPPs) also needs to
be enhanced. The Government has supported PPPs to leverage the strengths of both private and
public sectors to deliver and maintain infrastructure investments in the country. Following the
approval and adoption of the PPP Policy in 2008 and the enactment of the PPP Act by Parliament in
August 2009, the Government has continued to firm up institutional arrangements to implement
PPP financed infrastructure projects. In September 2012, the Government announced the merger of
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the Zambia Development Agency and the PPP Unit in the Ministry of Finance (MOF) to establish
an Industrial Development Commission to enhance capacity for implementation of PPPs. An
adequate institutional framework, however, to spearhead project identification, appraisal and
implementation still remains a constraint.
Sectoral and institutional Context
Sector Issues
1. Agriculture Sectoral and Institutional Context: The project fits within the agriculture
sectoral and strategy context to address the challenges in the sector, as well as aligns to World Bank
agriculture portfolio. Agricultural development is a high priority area and the proposed project
activities on climate smart agriculture intended to offset carbon emissions and promote
conservation agriculture are a priority
2. Challenges in the Agriculture Sector:
i. The agriculture sector employs more than 70 percent of the population but contributes
about 14 percent to real Gross Domestic Product (GDP ). Two-thirds of Zambians live in the rural
areas and mostly depend on rain-fed agriculture whose overall productivity remains low even in
comparison with Low Income Countries (LICs) (LCMS 2010). The mean size of the land holding
is 3.27 hectares and the small-scale farming systems are overwhelmingly dominated by a single
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crop—maize. Nearly 83 percent of all households grow maize (LCMS 2010 ).
ii. The vast majority of the very poor derive their livelihoods from subsistence smallholder
agriculture, and are most vulnerable to climate change. Farming is the principal source of income
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for communities in the Luangwa Valley, a mixed woodland landscape dotted with smallholder
farmers. The farmers grow food crops, such as maize and sorghum, and cash crops; cotton,
soybeans and tobacco. The families of the Luangwa valley are mostly unable to meet their food
security needs for about three months in a year partly because of time spent on commercial crops
but also partly because the environment is edaphically dry, reducing the optimum productivity of
the crop. In view of this, survival measures for the families are mainly natural resources based,
namely, poaching of animals whose meat they exchange with food and/or burning of trees for
charcoal which they sell and the money used for food. These measures lead to depletion of wildlife
and degradation of forests, respectively. Studies conducted several years ago showed that 20 to 60
percent of Luangwa Valley residents were not food secure up to 3-months, with food security being
defined as sufficient food to last from one harvest to the next for a given family.
iii. The Sixth National Development Plan (SNDP) recognizes agriculture as a principle sector
for poverty reduction and for promoting economic diversification. The elderly, female-headed
households and single or divorced male or single parent headed households are vulnerable as they
mostly rely on subsistent cropping, sale of livestock, charcoal and other forest products and other
natural resources.
iv. Farmers face numerous constraints that keep productivity low. Inadequate rural
infrastructure, particularly feeder roads and irrigation systems, poor access to markets, inadequate
research and access to improved inputs, limited advice on their proper use are examples of
constraints faced. Women farmers tend to have even lower access to agricultural inputs than men.
Government expenditure on agriculture has risen consistently since 2000 but two main subsidy
programs the Farmer Input Support Program (FISP) and the Food Reserve Agency (FRA), have
absorbed more than 60 percent of the sector's budget and have distorted incentives in favor of
maize, and created unpredictability that has hindered private investment in agriculture. Political
economy constraints have made reforms of these subsidy programs difficult, but they are critical for
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ensuring optimum development benefits accrue from public expenditure. Recently, the
Government has proposed scaling down and reforming FRA purchase activities and reforming the
FISP and undertaking a reform of the land tenure system. The challenge, however, will be in
defining the size of the strategic food reserve and employing transparent and competitive processes
for procuring the reserve stock. Another challenge is bringing to closure pressing land tenure
reform issues in a timely manner.
3. Forest Sectoral and Institutional context: Based on the Integrated Land Use Assessment
(ILUA, 2008), Zambia has a total land area of about 75,243,400 hectares and the forests cover
approximately 49.968 million ha (about 60% of the total land area). Forest cover in gazetted forest
reserves of Zambia accounts for 9.6% of the total land area; with 300 Local Forests (2,175,770
hectares) and 180 National Forests (5,181,503 hectares). Other forested areas occur in National
Parks (NP), Game Management Areas (GMA), customary land and Heritage sites. In Zambia, the
deforestation rates currently stand at approximately 250,000 to 300,000 hectares per year (ILUA,
2008). Food and Agriculture Organisation (2011) reported that between 1990 and 2010, Zambia
lost an average of 166,600 ha or 0.32% per year. In total, between 1990 and 2010, Zambia lost
6.3% of its forest cover or around 3,332,000 haThe main drivers of deforestation have been
identified as charcoal and wood fuel production, logging for timber, expansion of small scale
agriculture and unsustainable agricultural practices. However, there is some uncertainty as to how
much of deforestation is a direct cause of charcoal production and how much is due to agriculture
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expansion, as clearing for one is often interlinked with the other. Much of the woodland converted
to small-scale agriculture actually shows up as biomass in charcoal statistics, making it difficult to
disaggregate the two. The impact of charcoal production on deforestation is closely interlinked
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with access to/and the nature of the energy supply. Nearly 75 percent of the population lives
without access to electricity, and charcoal and wood-fuel constitute the main source of energy for
the majority of the population.
4. About 87 percent of the volume of commercially valuable tree species is currently not
formally managed. This suggests that commercially valuable species will soon be depleted. Unless
concerted of efforts are made, supply cannot be guaranteed in the long-term. In addition,
monitoring, enforcement and harvesting guidelines are very weak, creating an environment
conducive to illegal logging.
II. Proposed Development Objectives
Project Development Objective
1. The development objective of the COMACO Landscape Project is to reduce
emissions of Greenhouse Gases (GHG) through the sustainable management of 270,698 ha of land
traditionally devoted to community led agricultural and non-agricultural activities. The delivery of
the ERs according to the delivery schedule to be agreed upon in ERPA will be the results indicator
that is going to be monitored by the World Bank over the ERPA duration.
2. The project has the following specific technical objectives: (a) Agriculture Land
Management including Agroforestry: to increase food production and household income by
expanding legume-based agroforestry systems with demonstrated higher sustainable crop yields, and
production of important firewood, materials and tradable carbon compared to the baseline of
traditional smallholder agriculture; (b) Reduced Emissions from Deforestation and Degradation
(REDD): To protect and expand areas under natural forest and conserve biodiversity through the
intensification of food production on existing farm plots by adoption of legume-based agroforestry
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with in-built firewood production and avoidance of fallows, which will replace the need for further
forest clearing as part of slash and burn agriculture, firewood and charcoal production. The
decisions on land delineation for specific management purposes rest with the chiefs in consultation
with the communities. Currently the challenge is one where allocation of forest areas for agricultural
purposes to communities is made by the chief, and as a result the forested areas within the chiefdom
are shrinking over time. Several chiefdoms have recognized the problem and are willing to set aside
forest areas within chiefdoms for conservation use known as community conservation areas (CCAs).
The interventions in CCAs will include land use planning, and preparation forest management plans
by communities for managing conservation areas through implementing practices that will ensure
that the forest areas are sustained. Agreements between chiefdoms and COMACO will include
provisions for implementation. The agreement also requires the Chiefs to submit a benefit sharing
plan that will ensure fair distribution or usage of revenue channeled through the sale of Emission
Reductions generated from the Project.
3. In addition, the project supports important local environmental and social co-benefits and
assists small-scale farmers to diversify their source of incomes while contributing to the
development of the forestry sector at the regional level. The project activities contribute to the
protection of the remaining natural forests and its biodiversity as well as to the control of soil
erosion and sediments affecting the Luangwa River. Furthermore, the project produces wood for
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domestic and local use from the agroforestry trees. The project also contributes to the adaptation to
climate change that is affecting the region.
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III. Project Description
Component Name
Sustainable Agricultural Land Management (SALM)
Comments (optional)
This component aims to promote a shift from traditional small-holder shifting agriculture
(“chitimene”) to improved practices that increase food production and farm-gate export income per
unit area by expanding legume-based agroforestry systems with demonstrated higher sustainable
crop yields and increased carbon storage. Other management practices rewarded by COMACO will
include cessation of post-harvest crop-residue burning and collateral forest fire damage, the full
suite of no-till and residue retention agricultural practices and dedicated woodlots and border
plantings.
Component Name
Reducing emissions from deforestation and forest degradation, and the role of conservation,
sustainable management of forests and enhancement of carbon stocks (REDD+)
Comments (optional)
This component aims to protect and expand areas under natural forest and conserve biodiversity. It
will build on the first component which will replace the need for further forest clearing as part of
slash and burn agriculture, firewood and charcoal production. Supporting these efforts will be the
establishment of “Green Zones” which will be used to produce sustainably harvested non-traditional
forest products (apiaries for honey and wild mushrooms) as well as alternatives to destructive
charcoal production (with attendant forest fire risks). Management of the Green Zones will also
include the establishment of fire-breaks to protect forest products harvest. In addition to the Green
Zones, COMACO is also working with the chiefdoms on creating “Community Conservation
Areas”
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Component Name
Project Management
Comments (optional)
In addition to the above mentioned technical components this component aims to provide project
development and implementation technical assistance during the project period.
The World Bank support is primarily through purchase of emission reductions generated by the
project. The technical support in project preparation is limited to assistance for feasibility
assessment for emission reductions, baseline preparation and verification, as indicated in the Letter
of Intent and agreed with the COMACO.
IV. Financing (in USD Million)
Total Project Cost: 1.33 Total Bank Financing: 0.00
Financing Gap: 0.00
For Loans/Credits/Others Amount
Borrower 0.00
Carbon Fund 1.33
Total 1.33
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V. Implementation
The Zambia Community Markets for Conservation (COMACO Ltd) Landscape Management
Project will promote sustainable climate-smart agricultural practices in the Luangwa Valley in
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Eastern Province of the Republic of Zambia (GRZ). The project will expand the sustainable
agricultural land management and forest conservation activities being currently implemented by
COMACO Ltd. with a view to linking closely to overall climate resilience of preparedness and
adaptability.
COMACO is the project’s delegate manager. It is a limited-by-guarantee, non-profit company.
Stewarded by Wildlife Conservation Society (WCS) in close consultation with Community
Resources Boards of Luangwa Valley, Producer Group Cooperatives, District Council authorities,
and key Government institutions, such as Zambia Wildlife Authority and Ministries of Tourism,
Environment and Natural Resources, Agriculture, and Local Government, it uses a business
approach that finds economic solutions to end poverty among rural small-scale farmers and
encourages improved farming technologies to help end hunger.
The Department of Agriculture in the Ministry of Agriculture and Livestock is responsible for the
providing agriculture extension services in order to promote adoption of improved farming
technology for farmers to achieve high production, productivity, maintain and improve the
agriculture resource base. The Forestry Department, which falls under the Ministry of Lands,
Natural Resources and Environmental Protection, has the mandate to manage forests both on
customary land and protected forests.
During the initial scoping COMACO and the World Bank’s BioCarbon Fund (BioCF) agreed to
pilot the approach in ten chiefdoms in the Luangwa valley, Eastern province, Zambia where
COMACO is operating. The area of ten chiefdoms (Magodi, Zumwanda, Chikomeni,
Masemphangwa, Jumbe, Chikuwe, Nyampande, Mwape, Luembe and Nyalugwe) within these
districts where activities for sustainable agriculture and for reducing emissions from deforestation
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and forest degradation (REDD+) are expected to be implemented was estimated at approximately
270,698 ha per preliminary assessments of areas available for the project. The exact area will be
known once the mapping of specific sites has been completed by COMACO.
VI. Safeguard Policies (including public consultation)
Safeguard Policies Triggered by the Project Yes No
Environmental Assessment OP/BP 4.01 ✖
Natural Habitats OP/BP 4.04 ✖
Forests OP/BP 4.36 ✖
Pest Management OP 4.09 ✖
Physical Cultural Resources OP/BP 4.11 ✖
Indigenous Peoples OP/BP 4.10 ✖
Involuntary Resettlement OP/BP 4.12 ✖
Safety of Dams OP/BP 4.37 ✖
Projects on International Waterways OP/BP 7.50 ✖
Projects in Disputed Areas OP/BP 7.60 ✖
Comments (optional)
Projects has drafted an Environment and Social Management Framework (ESMF), Pest
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management Plan (PMP), and Resettlement Framework (RPF). The safeguards instruments have
been reviewed by the Zambia Environmental Management Authority (ZEMA) in compliance with
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the country laws and were reviewed and cleared by the Bank as per relevant safeguards policies.
VII. Contact point
World Bank
Contact: Indira Janaki Ekanayake
Title: Senior Agriculture Economist
Tel: 458-4821
Email: iekanayake@worldbank.org
Borrower/Client/Recipient
Name: COMACO
Contact: Lewis Dale
Title: President
Tel:
Email: dlewis@itswild.org
Implementing Agencies
Name: COMACO Ltd
Contact: Dale Lewis
Title: Dr.
Tel: 260-211-2260082
Email: dlewis@itswild.org
VIII. For more information contact:
The InfoShop
The World Bank
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1818 H Street, NW
Washington, D.C. 20433
Telephone: (202) 458-4500
Fax: (202) 522-1500
Web: http://www.worldbank.org/infoshop
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