The World Bank Adapting Rice Systems for Enhanced Food and Nutrition Security (P175269) Project Information Document (PID) Concept Stage | Date Prepared/Updated: 30-Nov-2020 | Report No: PIDC30463 Nov 30, 2020 Page 1 of 12 The World Bank Adapting Rice Systems for Enhanced Food and Nutrition Security (P175269) BASIC INFORMATION A. Basic Project Data OPS TABLE Country Project ID Parent Project ID (if any) Project Name Madagascar P175269 Adapting Rice Systems for Enhanced Food and Nutrition Security (P175269) Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) AFRICA EAST Nov 01, 2021 Feb 28, 2022 Agriculture and Food Financing Instrument Borrower(s) Implementing Agency Investment Project Financing Ministry of Finance Ministry of Agriculture, Livestock and Fisheries Proposed Development Objective(s) To increase the productivity and resilience of rice-based systems and improve nutritional outcomes among targeted rural communities in Madagascar. PROJECT FINANCING DATA (US$, Millions) SUMMARY-NewFin1 Total Project Cost 100.00 Total Financing 100.00 of which IBRD/IDA 100.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Development Association (IDA) 100.00 IDA Credit 100.00 Environmental and Social Risk Classification Concept Review Decision Nov 30, 2020 Page 2 of 12 The World Bank Adapting Rice Systems for Enhanced Food and Nutrition Security (P175269) Substantial Track II-The review did authorize the preparation to continue Country Context Despite abundant and diverse natural resources, Madagascar remains among the poorest countries in the world. One of few countries globally where poverty has risen over the last two decades, the average Malagasy is 42 percent poorer today than in 1960. With a gross domestic product per capita of USD 522, Madagascar ranks among the lowest (162 out of 189) on the Human Development Index (UNDP 2019). Roughly 3 in 4 people live on less than USD 1.90 a day. This equates to nearly 18 million people living in poverty. Five million people, predominantly in the country’s south, are affected by recurring natural disasters, including cyclones, floods and droughts. Fragile food systems jeopardize food security while some of world’s highest rates of chronic malnutrition and stunting severely handicap human capital growth. Buffeted by the COVID-19 pandemic, economic growth in 2020 is expected to slow markedly, jeopardizing livelihoods and incomes among the most vulnerable populations. Prior to the COVID-19 pandemic, Madagascar was on an upward trajectory. The country’s five-year economic revival was supported by a return to constitutional order and peaceful political transitions. These and other developments helped to restore investor confidence, reopen access to key export markets, reinstate flows of concessional financing and encourage structural reforms. In 2019, growth reached 4.8 percent, its fastest pace in over a decade. Industry and the service sector gained momentum and tourism revenues were exceptionally strong, supported by a 19 percent increase in visitor arrivals. In the primary sector, while cash crops, especially vanilla, suffered from weakening external demand and declining prices, favorable weather conditions contributed to a higher than 5-year average harvest, with rice output increasing by 5.2 percent in 2019. Amid dimming economic prospects, COVID-19 now threatens to exacerbate food insecurity and reverse hard-won development gains. Positive trends in income per capita suddenly halted at the start of 2020, as the COVID-19 pandemic triggered a sharp synchronized slowdown across the globe. The ensuing recession in Madagascar is having a severe impact on vulnerable populations, while reducing fiscal resources available for priority investments and social programs. Government revenue and access to foreign exchange reserves are expected to drop further, as is the value of the Malagasy Ariary, due below-average mining and textile exports, reduced tourism, and increasing import needs. Currency depreciation is likely to drive up prices of imported goods, including rice, tightening food access among cash-strapped households and depressing food consumption.1 Due sustained job and income losses across both formal and informal sectors, the poverty rate is expected to increase in 2020 to 76 percent.2 Beyond the impact of the immediate crisis, growth remains bounded by low human capital, poor infrastructure, a lack of competition, poor public sector governance, and the prevalence of high informality and low-input, subsistence agriculture. 1 Household surveys reveal that large numbers of people are running out of food or reducing food consumption in order to adjust their spending to worsening circumstances. In June 2020, 60.4 percent of households surveyed nationally reported eating less than they felt they needed to in the previous 3-day period due to a lack of money. Another 31.7% of rural households over the same period reported skipping meals due to a lack of money to purchase food. 2 World Bank. Poverty & Equity Brief: Madagascar, Africa Eastern & Southern, October 2020 Nov 30, 2020 Page 3 of 12 The World Bank Adapting Rice Systems for Enhanced Food and Nutrition Security (P175269) Sectoral and Institutional Context Given agriculture’s massive economic footprint in Madagascar, enhancing the sector’s performance is vital to economic growth and poverty reduction efforts. Roughly four in five people, mostly subsistence farmers, rely on agriculture for their livelihoods. Roughly the same ratio lives below the poverty line. For a sector that accounts for 70 percent of total employment, its share of total exports (37 percent) and GDP (23 percent) is markedly limited. The sector’s value added has steadily declined by roughly one-third since its 1986 peak, amid sluggish and volatile growth rates. Despite strong potential, agriculture has failed to step up—as it has elsewhere in Africa, Asia and across the developing world—as a driver of structural transformation and growth. Low productivity, acute exposure to shocks (see Annex 5), limited storage and logistical capacities, and underdeveloped road networks are among critical bottlenecks handicapping the sector’s performance and growth prospects. Rice is Madagascar’s main crop and is closely linked to sector growth. Rice production accounts for 70 percent of the country’s total agricultural production, 40 percent of the island’s cultivated area, and virtually all of its irrigated land (WB 2020). High annual rainfall (1200 mm per year and above) and abundant freshwater water resources generally underpin favorable conditions for water-intensive rice production across much of the country; from the rainfed central highlands, to the irrigated and terraced lowlands, and semi-flooded coastal zones. Roughly 4 of 5 Malagasy agricultural households grow rice, relying on family labor and mostly on small holdings, with average yields of 2.8 tons per hectare.3 Most cultivate primarily for subsistence, are chronically food insecure, and generally lack basic services such as improved water sources and electricity. A mere 20 percent of production is marketed as surplus. While on par with much of Sub-Saharan Africa, rice productivity in Madagascar is considerably lower than the world average (4.7 tons/ha in 2018), and many times lower than in East Asia (6.97 tons/ha). Small-scale schemes account for roughly 86 percent of total land under controlled water management; medium (13%) and large-scale schemes (0.4%) account for the rest (World Bank 2020). Insufficient maintenance and upkeep of irrigation infrastructure and weak management capacity among user groups plague many irrigation schemes.4 As a result, unreliable water supply coupled with insecure land tenure arrangements, limited extension and input supply networks, and poor connectivity to downstream markets stymie farmer incentives to uptake improved, productivity-enhancing technologies such as high-yielding seed, fertilizers, and machinery. Hampered by stagnating yields, the rice sector’s performance has languished. Rice is also a crucial but fragile linchpin of the country’s food security. Madagascar has among the highest per capita consumption of rice globally. Consumed three times per day, rice accounts for a bit more than half of the average household daily caloric intake. Each Malagasy consumes an estimated 120kg of rice on average per year, more than twice the world average (53kg) and above many other major rice producing countries such as China (77kg). National production remains, however, insufficient to meet the needs of Madagascar’s growing population, covering about 85 percent of consumption requirements (FAO 2020). Per capita production has been declining amid growing rice imports (see Figure 1 and 2 in Annex). Paddy rice production declined from 4.7 in 2010 to 4.2 million tons (-10%) in 2019. According to the Ministry of Industry, Trade and Handicrafts, domestic utilization of paddy rice in Madagascar is about is about 3.9 million tons, whereas domestic production is 3.5. million tons. To fill this gap, the country relies on imports, estimated at 420,000 tons of paddy rice equivalent in the 2020/21 marketing year, slightly below the previous five ‑year average (FAO 2020). 3 Average rice yield per hectare globally is 4.25 metric tons and yields vary considerably from one country to the next. The highest yield of 10.04 metric tons has been registered in Egypt, followed by 7.94 metric tons in the USA, 6.54 metric tons in Japan and 6.49 metric tons in China. 4 According to a recent World Bank study, only about 60 percent of the command area on small and medium schemes is estimated to be functional; this is higher than the functional area of large schemes (estimated at 45 percent). More than half of surveyed rice farmers cited unreliable water supply as a major issue (World Bank 2020). Nov 30, 2020 Page 4 of 12 The World Bank Adapting Rice Systems for Enhanced Food and Nutrition Security (P175269) At the same time, Madagascar has the fourth highest rate of chronic malnutrition, with nearly 1 in 2 children (49.7%) under five years of age stunted and 7.9 percent wasted (Global Nutrition Report 2020). More than 1 in 3 women of reproductive age have anemia. Each child risks a lifetime of cognitive and physical limitations, presenting a severe drain on human capital development. According to the Human Capital Index, a child born in Madagascar will only be 39% as productive when she grows up as she could be if she enjoyed complete education and full health (World Bank 2020a). It is estimated that this equates to roughly 7-12% annually in lost GDP. The Government of Madagascar is committed to furthering the development of the rice sector, and in particular, achieving self-sufficiency in rice production. In the Plan Emergence Madagascar (PEM, 2019-2023), the Government’s vision for the agricultural sector prioritizes self-sufficiency in rice production as a means to strengthening the country’s food security. In particular, the PEM calls for new investments to intensify and expand rice production via the rehabilitation of existing irrigation schemes and the development of new irrigated areas. This vision builds on the Government’s strategic priorities for the rice sector, as outlined in its 2016-2020 National Strategy for the Development of the Rice Sector (Stratégie Nationale du Développement Rizicole - SNDR). With the overall objective to address bottlenecks to rice productivity and sector growth, the SNDR aims to, among priority actions: i) promote research and technology development, ii) strengthen agricultural extension services; iii) upgrade rural infrastructure and improve market connectivity; and iv) enhance rice sector governance. Relationship to CPF The proposed Madagascar Agriculture Intensification Project is well aligned with the World Bank’s Country Partnership Framework (CPF FY17-FY21). Broadly, the CPF seeks to increase the resilience of the most vulnerable people and to promote inclusive growth. It also aims to improve livelihoods through more productive agriculture and improved resource management. The project will support the two Focus Areas of the CPF, namely: i) increase resilience and reduce fragility; and ii) promote inclusive growth. It aligns with the CPF objective of unlocking productivity in labor-intensive sectors by improving the investment climate and building resilient infrastructure. The proposed Project also aligns with the government’s “Plan Emergence Madagascar� (PEM, 2019-2023) and the National Rice Development Strategy (NRDS, 2016-2020). As envisioned, the project will help further the PEM’s Commitment 12 on food self-sufficiency, which aims, in particular, at achieving sustainable productivity gains, improving food and nutrition security, and improving access to domestic markets. In line with the CPF, the project is being prepared in synergy with relevant World Bank and donor projects . Project preparation is being closely coordinated to build upon and leverage past, ongoing, and downstream investment across the SD and HD operational footprint, with aim to ensure complementarities and to maximize development gains. Among operations informing the Project’s design are the Irrigation and Watershed Management Project, 2014 -2018 (P160848, P172995, P174669); and Connecting Madagascar for Inclusive Growth Program (P173711). Relevant partner projects include the Rice Productivity Improvement, Watershed and Irrigated Perimeters Management Project (PAP-Riz SOP) and the Project for Rehabilitation of Irrigation System in South-West of Alaotra Lake (PC23), financed by the Japan International Cooperation Agency (JICA). See Annex 3 for a more comprehensive list of projects and relevant details. C. Proposed Development Objective(s) To intensify rice production and strengthen the food and nutrition security among targeted rural communities in Madagascar Key Results Nov 30, 2020 Page 5 of 12 The World Bank Adapting Rice Systems for Enhanced Food and Nutrition Security (P175269) The Theory of Change underlying the project design (Figure 3 in Annex) is oriented around three target development outcomes. These are: i) achieving self-sufficiency in rice production; ii) reduction in hunger and chronic malnutrition; and iii) improved food systems resilience. To generate these outcomes, the project will finance infrastructure rehabilitation and the expansion of existing schemes and strengthen the organizational and resource management capacity of water user groups. It will invest in research and the development of improved seeds and fertilizer delivery systems to increase productivity. It will facilitate extension and training to catalyze uptake of Climate-Smart technologies and practices for improved yields, diversification,5 and resilience. It will incentivize farmer and agribusiness investments in mechanization, storage, and post-harvest agro-processing upgrades in rice systems and complementary value chains to improve incomes via aggregation and value addition. The following key indicators will be used to track progress toward the PDO: i) Increased rice production in project-supported sites ii) Increased volume of marketed rice surplus in project-supported areas (i.e., market access) iii) Value of non-rice crop production in irrigation sites supported by the project (i.e., product/income diversificiation) iv) Household Dietary Diversity Score (HDDS) D. Concept Description The operational rationale, the development objectives, and the technical design of the proposed project are grounded in the World Bank’s renewed and increasing engagement and support to Madagascar’s agriculture sector and upstream ASA. Following a mutli-year dialogue between the Bank and the GoM, the operation was initiated in response to a request for Bank support from the Government of Madagascar. The proposed focus on the country’s rice sub -sector responds directly to current GOM priorities as they relate to the achievement of self-sufficiency in rice production and strengthening food security. The project’s results chain and proposed interventions have been informed by a series of upstream analytical work, including: i) Scaling up Smallholder Inclusion in Agri-Food Value Chains: Insights from the Rice and Dairy Sectors (WB 2018); and ii) ) Unlocking the Potential for Irrigated Rice Schemes in Madagascar (WB 2020). These studies highlight the myriad and systemic deficiencies that impede the productivity of rice production systems and that stifle investments. The studies also highlight strong scope to unlock the sector’s latent growth potential with targeted investments and support to stakeholders across the rice value chain. As envisioned, the proposed Project will support the Government of Madagascar and its priorities as they relate to improving food security and achieving self-sufficiency in rice production. As a first phase in a multi-phased strategic approach, the Project will catalyze intensification of rice production in Madagascar by prioritizing the rehabilitation and upgrading of existing irrigation infrastructure and strengthening the organizational and resource management capacity of actors and institutions across the rice value chain. Project investments will also aim to enhance farmer connectivity (via infrastructure upgrades and digital technologies) to input and output markets while strengthening the enabling environment for sustained productivity-enhancing investments and for more competitive domestic rice markets. At household level, investments will aim to enhance water use efficiency and diversify production systems for improved livelihood resilience and nutrition outcomes. To address binding constraints to rice intensification, the Project will seek to identify the most promising innovations, through dedicated support to research, for field testing, adaption, and 5 Crop diversification refers to the production of other crops (beans, maize, cassava, etc.) in the irrigated perimeters and their watersheds, in addition to the production of rice. Nov 30, 2020 Page 6 of 12 The World Bank Adapting Rice Systems for Enhanced Food and Nutrition Security (P175269) validation by farmers before scaling up. Robust monitoring and evaluation of activities will generate lessons and empirical evidence that will help to generate new data, fill knowledge gaps, and inform the design of downstream investments. The Project’s proposed geographic coverage has been initially determined via consultations with MAEP during an October pre-identification mission. Figure 4 in Annex depicts the regions that were identified, on a preliminary basis. These include Aloatra Mangoro, Aninatsana, Maleky, and Sofia. Priorities will be further defined through broader consultation with the GoM, partners and World Bank teams during project preparation. These discussions will be aided by set of objective filtering criteria as yet to be determined. Illustrative criteria include the following: • Potential for achieving sizable yield gains and to contribute to marketable surplus; • Clear synergies with key WB or donor-funded transport infrastructure programs; • water catchments actively managed to ensure viability of infrastructure and resource investments; • Assessments of the actual and potential availability of water needed to support intensive irrigated rice production; • Potential for strong coordination and complementarity with World Bank and donor investments including the rehabilitation of major axes and secondary roads, land tenure, SLM. The proposed technical design of the Project has also been informed by the experience gained and lessons learned from previous Bank-financed activities in Madagascar, as elsewhere. Notable features of the Project’s design that include: • Phased approach to allow for testing innovations, adaptive learning, validation and scale up: Transformational change takes time. It requires sustainable change in long-standing behaviors. It requires learning-by-doing. As a first phase in a multi-phase development strategy, the Project adopts a step-wise approach, beginning in a smaller geographic area to initiate operations and build implementing capacity before scaling horizontally and vertically in subsequent phases, while emphasizing downstream strategies to increase the competitiveness of rice production systems and the competitiveness of domestic markets. • Projects promoting rice intensification should emphasize irrigation infrastructure upgrades . Without rehabilitation and effective operations and maintenance of the irrigation infrastructure, irrigation water availability decreases, leading to a decrease in yields. Irrigation is a key part of the package of intensification activities that includes the promotion of improved inputs (e.g., seeds, fertilizers) and paddy-levelling, among others, to achieve significant yield gains. • Harnessing synergies with other WB and partner investments: The Project recognizes that learning from and adapting lessons from past and ongoing investments in the rice sector by the World Bank, other donors, NGOs, etc. is essential to implementation success. This will require close coordination with World Bank teams including water, health/nutrition, FCI, and transport. • Upping market access among farmers is critical to sustainability of investments: Farmers respond to market incentives. In their absence (due to poor connectivity, lack of information, etc.), they are ill-equipped to make and continue making the investments needed to produce a marketable surplus. Thus, improving farmers’ access to downstream markets is key. • Project implementation via existing structures within MAEP enhances ownership and sustainability: The project will prioritize the secondment of public officials from the relevant institutions such as Genie Rural, Training, and the Regional directorate so to enhance opportunities to strengthen human resource and institutional capacities across the Ministry so critical to the sustainability of investments, service delivery, and long-term sector performance. Nov 30, 2020 Page 7 of 12 The World Bank Adapting Rice Systems for Enhanced Food and Nutrition Security (P175269) The project will seek collaboration with partner organizations that are actively engaged in Madagascar’s rice sector. These include the International Fund for Agricultural Development (IFAD), the African Development Bank (ADB), the French Development Agency (AFD), the European Union, the UN Food and Agriculture Organization (FAO), the United States Agency for International Development (USAID) and the and the Japan International Cooperation Agency (JICA). The project is an Investment Project Financing (IPF) of a proposed amount of US$100 million, structured around four primary technical components that support: 1) upgrading the quality and performance of irrigation infrastructure and services; 2) increasing the productivity and environmental sustainability of rice systems and enhancing farmer access and connectivity to good/services markets (i.e., inputs, output); and 3) strengthening the enabling environment for private sector-led growth of the rice sub-sector. Component 3 will finance analytical studies to address knowledge gaps and will support institutional strengthening for improved coordination of the entire value chain and stronger advocacy for needed sector reforms. A fourth and fifth component will cover project management activities and provide for a Contingency Emergency Response Component (CERC) to enable a rapid response in the event of a crisis. Component 1: Upgrading the quality and performance of irrigation infrastructure and services Sub-Component 1.1 – Rehabilitating and expanding existing infrastructure Activities under this sub-component will include and be guided by institutional capacity needs assessments and scoping studies with aim of identifying and prioritizing the development of: i) bespoke technical and design training programs for Genie Rurale and other implementing partners; and ii) comprehensive designs for schemes in need of rehabilitation. Investments in drainage and transmission would be targeted, where a rationalization exercise justifies that these are necessary); and iii) tendering and construction of irrigation infrastructure and related works. Preparation of scheme designs will initiated during project preparation to support and expedite project readiness. Sub-Component 1.2 – Improving irrigation management and services: Sub-component activities will include the establishment of a WUA training team located at the Genie Rurale Head Office. They would drive a full-time rolling program where WUA officers from the Genie Rurale Regional branches would be trained through a combination of in- person workshops, on-site practice, and virtual course-work, to enable them to establish, train and capacitate WUAs at each irrigation perimeter included in the project. Key elements would include: i) legal and formal institutional establishment; ii) rights of use and responsibilities in regard to infrastructure, rules of operation and water distribution; and iii) infrastructure maintenance, fee structures, explicit rules for allocation, and compliance monitoring and enforcement. Component 2: Strengthening rice systems and enhancing market access Sub-Component 2.1 – Support to seeds and fertilizer systems development: This subcomponent will support, improve and strengthen core input supply markets, especially for seeds, fertilizers systems and mechanization equipment. Activities to be financed under the component will aim to: i) improve seed research and development in collaboration with the National Center for Agriculture Research (FOFIFA); (ii) support the setup and management of community-based seed multiplication and distribution programs (e.g., Seed Banks); (iii) reinforce seed quality control and certification services; and (iv) training to optimize farmer seed and fertilizer use (including the piloting of innovations such as Urea Deep Placement). Sub-Component 2.2 – Improving market access and connectivity: Activities under this sub-component will finance investments designed to stimulate access and adoption among farmers of productivity-enhancing inputs and equipment while improving their access to downstream offtake marketsThe project will support: i) the initial piloting of the voucher program in target districts; ii) monitoring and evaluation to track progress and document lessons; iii) exchange visits for Project and MAEP staff to learn from the experience elsewhere (e.g., Kenya, Uganda); and iv) development and integration of a digital platform for improved efficiencies, transparency, and scale. Nov 30, 2020 Page 8 of 12 The World Bank Adapting Rice Systems for Enhanced Food and Nutrition Security (P175269) This sub-component will also finance sub-projects through matching grants to catalyze investments in: i) equipment that will enable farmer-led irrigation (e.g., small pumps, hoses/pipes); ii) post-harvest upgrades (e.g., storage, mechanization, milling, agro-processing); iii) rehabilitation and maintenance of feeder roads, small bridges, etc.; and iv) upgrades to market infrastructure (e.g., warehousing, market stalls). The sub-component will also promote the development and piloting of digital agriculture platforms that improve farmer connectivity to services (e.g., e-extension, e-vouchers, weather, market prices) and help inform evidence-based decision making and improve resource management. Sub-Component 2.3 – Promoting climate-smart and nutrition-sensitive agriculture: under this component, project interventions will aim to: i) introduce improved seeds (i.e., disease or drought resistant, early maturing) and soil and water conservation technologies and practices (e.g., Sustainable Rice Intensification (SRI)6, transplanting, use of targeted quantities of soil fertilizers such as NPK during transplanting, urea for top dressing at panicle initiation stage and cow manure during garden preparation) through demonstration plots and Farmer Field Schools; and ii) improve household nutrition by promoting dietary diversification and supplementation, and financing school, community and kitchen gardens to encourage the production and consumption of micro-nutrient rich foods. The project will explore synergies with ongoing health/nutrition projects funded by the Bank, such as the Improving Nutrition Outcomes project, to promote broad awareness of the importance of a healthy, nutrition diet. Component 3: Strengthening rice sector governance and enabling environment Sub-Component 3.1 - Support for research, policy notes, and studies: This sub-component will support: (i) updating of the Rice Sector Development Plan; (ii) assessing and strengthening of legal and regulatory frameworks related to irrigation governance to input trade and marketing, including tax policies on importing, producing and trading inputs, and quality monitoring, control and enforcement; and (iii) feasibility studies and social and environmental studies to inform strategic irrigation investments. Sub-Component 3.2 – Capacity-building support to MAEP, industry associations and other professional organizations for improved governance and advocacy: This sub-component aims to strengthen governance and the enabling environment for the rice sector via: i) capacity-building support to MAEP, the Platform for Concerted Action for the Piloting of the Rice Sector (PCP Riz) and the Rice Observatory, a parastatal rice-based think-tank focused on price monitoring, based on institutional needs assessments; ii) improving data collection, analysis and management by MPAE and the Rice Observatory; iii) training to strengthen policy advocacy among producer organizations, industry groups, and other key stakeholders. Component 4: Project Management and Monitoring and Evaluation This subcomponent will set up a Project Management Unit (PMU) with dedicated, full-time staff to assist the Direction of Agriculture (DAG) of the MALF in the day-to-day implementation of the project. Proposed structure of the PMU with job descriptions will be developed and agreed with DAG before appraisal. The core PMU will be set up in DAG soon after the PCN approval. Funds would be provided to meet salaries and allowances of PMU staff and to cover operation expenses. The GoM expressed interest in requesting a Project Advance. These funds will be used among other things to make progress in setting up and strengthen the PMU accordingly. Component 5: Contingency Emergency Response Component (CERC) This component will provide immediate response to an eligible crisis or emergency, as needed. Following an eligible crisis or emergency, the Borrower may request the Bank to re-allocate project funds to support emergency response and reconstruction. This component would draw from the uncommitted financial resources under the project from other 6 The System of Rice Intensification (SRI) is a climate-smart, agro-ecological methodology for increasing the productivity of rice and more recently other crops by changing the management of plants, soil, water and nutrients. Nov 30, 2020 Page 9 of 12 The World Bank Adapting Rice Systems for Enhanced Food and Nutrition Security (P175269) project components to cover emergency response. 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 . The environmental and social risk classification (ESRC) is substantial. The relevant standards that have been identified during the through the environmental and social risk screening at concept stage of the project are: ESS1: Assessment and Management of Environmental and Social Risks and Impacts; ESS2:Labor and Working Conditions; ESS3: Resource Efficiency and Pollution Prevention and Management; ESS4: Community Health and Safety; ESS5: Land Acquisition, Restrictions on Land Use and Involuntary Resettlement; ESS8 Cultural Heritage; ESS10: Stakeholder Engagement and Information Disclosure. Environmental risks and impact. The proposed project will bring significant benefits to the communities in the target regions through the provision of enhanced services, technical assistance and sectoral coordination, as well improvements to agriculture infrastructure, the rehabilitation/construction of feeder roads and bridges, access to matching grant to the farmers to increase access to markets and other investments to unlock agribusiness potential. Although the impacts of the Project are likely to be positive, these activities carry several risks that are mainly generated by the activities under Component 1; Component 2 and Component 3. The Rehabilitation and expansion of existing irrigation infrastructures, rehabilitation of feeder roads and bridges, rehabilitation and upgrading of market and post-harvest infrastructures include small-to medium-scale of civil works will more than likely generate adverse site-specific risks and impacts, such as disposal of material excavated during construction/rehabilitation activities, the occupational health and safety of workers during construction and operational phases, increased levels of dust and noise and community health and safety risks from, in particular, the risk of pollution to surface and groundwater sources during dredged of channels; generation of solid and liquid waste. In addition, the component 2.2 will propose to improve farmers' access to fertilizers and seed systems that could increase the potential use of pesticides and fertilizers that could cause adverse health effects and leading to degradation of surface and groundwater quality for irresponsible use, storage and disposal of these chemicals . Based on the project activities the potential adverse risks and impacts on human populations and/or the environment are not likely to be significant and will be site specific. Social risks and impact. It is expected that project activities will have essentially positive social impacts by financing rural infrastructure investments, irrigation infrastructure, community markets and feeder road. However, the proposed project activities to be financed through component 1 and 3 on improving agriculture infrastructure may include small to medium scale civil works. These activities are likely to induce some social risks and impacts that are however mostly temporary, predictable and/or reversible. Labor influx and associated risk and impacts can be a point of concern, especially on community health, (including the risk of transmission of diseases such as STDs, as well as the transmission and propagation of COVID-19) and Gender-based violence (GBV)/ Sexual Exploitation and Abuse (SEA)/Sexual Harassment (SH). No irreversible social risks related to land access is expected. No physical displacement is expected for the project, however there will be a risk of land acquisition and temporary displacement during the works. The innovative voucher program and Nov 30, 2020 Page 10 of 12 The World Bank Adapting Rice Systems for Enhanced Food and Nutrition Security (P175269) the matching grant program risk might be the inadequacy of criteria of eligibility which could led for exclusion of eligible person. Although civil works are not expected to have direct physical impact on the heritage monuments (cultural heritage mainly in Atsinanana region), there will be an indirect impacts from the movement of construction machinery, presence of work force during rehabilitation works (mainly feed road) which need to be adequately managed. The initial GBV risk screening has classified the GBV/SEA/SH risk as substantial which is mainly linked to labor influx in targeted regions. In line with the recommendation of the GBV Good Practice Note, specific GBV measures will be applied during preparation and implementation. Measures to be taken will include, but are not limited to (a) development and implementation of GBV action plan, (b) a requirement that the project includes clauses on workers? conditions and management, child protection, and GBV prevention in all contracts (code of conduct); (d) the reinforcement of the grievance mechanism (GRM) to ensure that any incident related to GBV will be addressed in an effective manner with sufficient social sensitivity. Strengthening citizen engagement. In accordance to ESS10, and directives on citizen engagement (CE) in IPF projects, the project will further develop activity promoting citizen engagement. The project is expected to have at least one indicator related to CE. but will also to consider developing specific activities which promote beneficiaries’ feedback, stakeholder engagement. To this end specific activities should be considered into Stakeholder Engagement Plan (PMPP); and in addition the project will develop and implement adapted Grievance mechanism (GM). Mitigation and Risk management. To limit these risks, the project needs to develop and to disclose by appraisal (i) a Draft Environmental and Social Commitment Plan (ESCP), (ii) a draft Environmental and Social Management Framework (ESMF); (iii) a draft Integrated Pesticide Management Plan (IPMP); (iii) a draft Resettlement Policy Framework (RPF); (iv) a draft Stakeholder Engagement Plan (SEP); (v) draft Labor Management Procedures (LMP); (vi) Grievance Mechanism (GM) as part of SEP, and the worker?s Grievance Mechanism as part of the LMP; (vii) Draft model of Environmental and Social Management System (ESMS) for FIs. It is also recommended to have a full time environmental and social safeguard specialist for the project to be hired before appraisal. Finally the project should ensure that satisfactory calendar and budget are considered into the project design. Safeguard monitoring. The M&E system of the project will include monitoring of ESS impacts and measures. The PMU as the implementing agency for the project, with the guidance of its environmental and social safeguard and with support of World bank safeguard team, will be responsible for the preparation, of the relevant ESA documents, or other appropriate safeguards tools. Monitoring checklists will be prepared based on the mitigation plans. . CONTACT POINT World Bank Stephen Paul D'Alessandro, Juan David Casanova Anoll Senior Agriculture Specialist Borrower/Client/Recipient Ministry of Finance Nov 30, 2020 Page 11 of 12 The World Bank Adapting Rice Systems for Enhanced Food and Nutrition Security (P175269) Implementing Agencies Ministry of Agriculture, Livestock and Fisheries Lucien Ranarivelo Minister maep.ministre@gmail.com 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): Stephen Paul D'Alessandro, Juan David Casanova Anoll Approved By APPROVALTBL Practice Manager/Manager: Country Director: Idah Z. Pswarayi-Riddihough 18-Feb-2021 Nov 30, 2020 Page 12 of 12