JAPAN SOCIAL DEVELOPMENT FUND (JSDF) Strengthening the Resilience Capacity of Maya Indigenous Peoples and Peasants to Cope with Food Insecurity and Climate Change in the Guatemalan Dry-Corridor Grant Funding Proposal (FY11 – Round 33) A. BASIC DATA Beneficiary Country: Guatemala Grant Name: Strengthening the Resilience Capacity of Maya Indigenous Peoples and Peasants to Cope with Food Insecurity and Climate Change in the Guatemalan Dry-Corridor Grant Recipient: Community-based Agroforestry Association of Guatemala Ut’z Che’ Name of Implementing Community-based Agroforestry Association of Guatemala Ut’z Che’ and Central America Agency or Agencies with Indigenous and Peasant Coordination Association for Community Agroforestry Joint Implementation: Agroforestry (ACICAFOC) Implementing Agency NGO Type: Main Sector: AZ General agriculture, Main Theme: Agriculture 91 Global Food Crisis fishing and forestry Response Recipient Grant Amount: US$ 2,507,050 Bank Incremental Costs Grant Amount: US$ 225,630 Total Grant Amount US$ 2,732,680 (Recipient and Bank Incremental Costs): B. PROJECT SUMMARY The development objective is to contribute to agricultural risk management and increase of productivity levels of Mayan indigenous peoples and peasants of both genders living in the selected areas of the Guatemala Dry-Corridor, using environmentally sensitive production systems at lower production costs to ensure food security. This operation is in response to the severity of the food crisis and the need for prompt action at the community level, working with the most vulnerable and poorest sectors of Guatemala’s population. The development objective will be carried out through the adoption of technologies and environmentally friendly production systems. These systems will increase productivity levels of quality agriculture at lower production costs, such as for maize-mixed production systems (agroforestry) and through the use of cost-efficient micro-agricultural water management technologies. The Project will pilot the development and strengthening of the production capacity of indigenous and peasant communities by (i) producing basic grains using economically and friendlier production systems such as agro forestry and mixed-production systems; (ii) piloting rainwater harvesting and micro-irrigation technologies and (iii) testing agricultural post harvesting systems. The primary target beneficiary group is the Mayan indigenous peoples and peasants of both genders living in the rural selected Communities in the Provinces of Baja Verapaz, Jalapa and El Progreso. The selected communities in Baja Verapaz are: Cubulco, Rabinal and Salamá. The selected ones in El Progreso are Sanarate and Sansare, and finally the selected communities in the Province of Jalapa are Jalapa, San Pedro Pinula and San Luis Jilotepeque. GRANT SUPPLEMENTARY INFORMATION 1. PROJECT INFORMATION 1.1 Strategic Context In 2011, international food prices are rising again for the second time in three years, creating a food price crisis similar to the one experienced in 2008 with its obvious consequences on the poor and the most vulnerable sectors. Variations in food prices are influenced by volatile oil prices, aggravated lately by the crisis in the Middle East and North Africa and the disaster in Japan. Water scarcity as part of agricultural drought is becoming an acute problem limiting the future expansion of irrigated agriculture. The Post-Harvest Loss (PHL) is an additional factor that exacerbates food insecurity and increases the dependency on food aid. The situation is getting worse for the population because this year food stocks are less than previous years, and because the global recession has cut remittances from Guatemalans living in the United States, which has been one of the main palliatives for the people to cope with poverty and hunger. In Guatemala, agriculture is one of the most important sectors of the economy (15% of GDP and half of the labor force). Water shortage for agriculture has been one of the major constraints to sustain agricultural production. According to the U.N. World Food Program, the global recession has deprived the country of the means to overcome the annual drought. The Eastern region of Guatemala is known as the Dry Corridor. It deserves its name due to the chronic shortage of rainfall, caused mainly by “La Niña,” provoking drought conditions and long-term-famine. The Dry Corridor comprises about six Provinces -- Jutiapa, Santa Rosa, Zacapa, Chiquimula, El Progreso and Baja Verapaz. This region has been severely affected by erratic and insufficient rain during the rainy months. This situation, coupled with unusually high temperatures, have been heavily affecting the region for the last three years, leading to the loss of crops and subsequent food shortages even more severe than normal. Over half of Guatemala's population lives in rural areas, in contrast to the rest of Central America which is predominantly urban. About 75% of this rural population lives in poverty. Guatemala's indigenous peoples are socio-economically marginalized and suffer disproportionately high levels of poverty. The Provinces of El Progreso, Jalapa and Baja Verapaz in the Central Highlands, with a predominantly indigenous population, is where rural poverty rates are among the highest. According to official data, the estimated vulnerable population in Guatemala for 2010 was 3,103,689 – of those, 9% (264,022) live in Baja Verapaz, 10% (309,909) in Jalapa and 5% (155,587) in El Progreso. The three selected Provinces located in the Dry-Corridor have some of the worst and most critical socio-economic indicators. In Baja Verapaz, for instance, the incidence of extreme poverty is 22%, poverty is 72% and water supply is only 13%. In Jalapa, the incidence of extreme poverty is 30%, poverty is 70% and water supply is 8%; finally, El Progreso shows a more promising scenario, while still not good, with extreme poverty registered at 7%, Poverty at 59% and water supply at 8%. The World Bank’ has been supporting the agenda of combating rural poverty by providing technical assistance and financial aid to small farmers. The objective of the Rural Competitiveness Project is to provide this type of support across the country. The Bank has also joined the Grupo de Dialogo (G-13) which is an initiative promoted by the government to initiate a dialogue to improve aid coordination and effectiveness through alignment with national plans. This Group is seeking to provide responses to the situation of the Dry-Corridor. Due to the severity of the problem most of the responses are emergency relief (food, shelter, medicine) and seed packs (Global Food Crisis Response Program -GFRP). The WB is also promoting country-led agriculture and food security plans to promote investments in small holder farmers as part of a long term food security program. The proposed Project fits within the overall strategy of the World Bank to boost agriculture and food security in the country. The Proposed JSDF Project is prepared under the premise that one of the main difficulties to manage agricultural drought is the understanding of the physical processes underlying the drought and the complexities of social decision- making before, during and after the crisis. Most responses have been based that people can use technology to control nature. However, this Project will be implemented under the assumption that technology is necessary to improve and boost agriculture productivity, but sustainability will be achieved if communities will be able to assess risk, evaluate environmental resources; determine social decision-making during the agricultural drought cycle (before, during and after) and prepare integral resilience plans at community level. The objective is that the Proposed JSDF Project would pilot these social and technological options to bring about lessons learned that can be replicated and be incorporated into a WB Project a larger scale to address the food insecurity of the Dry-Corridor as a whole. The JSDF is the best instrument to work directly with the affected communities to provide them with means to save lives of those children at imminent risk of starvation. The JSDF provides the financial instrument to work directly with vulnerable and affected people seeking to develop an integral and holistic approach to combat the roots of food insecurity using highly participatory approaches. Working with NGO’s and at community level will help to build local networks and action planners that will contribute to design local consensus building to assess risk, mitigation measures and use technology as a long term resilience plan. The participatory process itself will be an important result. 1.2 Main The primary target beneficiary group is the Mayan indigenous peoples and peasants of both genders Beneficiaries living in the rural areas of the selected Provinces of Baja Verapaz, El Progreso and Jalapa.The beneficiaries are poor peasants and Mayan indigenous peoples who range among the poorest groups of the country. Their historical poverty is aggravated by the impact of the drought and the famine. The project aims at benefiting about 1000 farmers (head household), which in average represents at least 4,000.00 people. 1.3 Project The selected communities in Baja Verapaz are: Cubulco, Rabinal and Salamá. The selected ones in El Location Progreso are Sanarate and Sansare and finally the selected communities in the Department of Jalapa are Jalapa, San Pedro Pinula and San Luis Jilotepeque.- The Municipalities and communities have been identified using the indicators such as drought, poverty, malnutrition and ethnicity (SENAN see Annex 1 Maps). http://www.siinsan.gob.gt/SalaSituacionalMapas/Mapas_estaticos/tabid/83/Default.aspx 1.4 Project Duration: 4 years Project Start : 11/1/2011 Project End 12/15/2014 Date: 1.5 Task Team Leader Mary Lisbeth Gonzalez 1.6 GRANT DEVELOPMENT OBJECTIVE The development objective is to contribute to agricultural risk management and increase of productivity levels of Mayan indigenous peoples and peasants of both genders living in the selected areas of the Guatemala Dry-Corridor, using environmentally sensitive production systems at lower production costs to ensure food security. The Project will pilot the development and strengthening of the production capacity of indigenous and peasant communities by (i) producing basic grains using economically and friendlier production systems such as agro forestry and mixed-production systems; (ii) piloting rainwater harvesting and micro-irrigation technologies; and (iii) testing agricultural harvesting systems. While diversifying crop production, the Project will pilot the impact of diversification on nutrition by analyzing the nutritional values of grains and vegetables. 1.7 DEVELOPMENT OUTCOME INDICATON QUANTIFIED TARGET 1.7(a) Number of farms using agroforestry and mixed agricultural systems. 60% of total beneficiaries 1.7(b) Number of farms using rainwater harvesting systems for irrigation. 60 % of total beneficiaries 1.7(c) Number of farms using sun-motor powered pumps. 60% of total beneficiaries 1.7(d) 2. GRANT RECIPIENT AND IMPLEMENTING AGENCY 2.1 Recipient Name: Agroforestry Association of Guatemala Ut’z Che 2.2 Recipient Background: Created in 2006, the Community-based Agroforestry Association of Guatemala Ut’z Che is a community-based organization. It is devoted to working with rural indigenous and peasant communities and organizations. It works with a network of about 34 organizations. In addition to consultants, it has 12 permanent staff members and manages an average budget of US$535,000 (see Annex 2). It supports activities and projects at national and regional levels in Guatemala, particularly in the area of the Dry-Corridor. For instance, it has coordinated specific programs in rural development and agriculture in the Chorti region with the Asociacion Regional Campesina Chorti (ASORECH) and the FAO. This Association is professionally linked to ACICAFOC which will support Ut’z Che with the administration of the grant and in the implementation of fiduciary, administrative and safeguards issues. Ut’z Che worked before with ACICAFOC during the implementation of the GEF Regional Project (Integrated Ecosystem Management in Indigenous Communities). Being aware that ACICAFOC has more experience than UT’z Che in project management a subsidiary agreement will be signed between ACICAFOC and Ut’z che to ensure that the project will be successfully implemented according to WB fiduciary procedures and social and environmental policies. 2.3 Implementing Agent Details Agency Name: Agroforestry Association of Guatemala Ut’z Che Address 6a. Calle 0-29, Zona 3, Barrio San Antonio, Palin, Escuintla, Guatemala. Contact Person in Proposed Francisco Xante Lobos Implementing Agency President of the board of directors and legal representative. Phone: 502 5259 8997 main number and Cel. +502 5206 3957 Email: oficina@utzchecomunitaria.org fxante@tikonel.org www.utzchecomunitaria.org (web) 2.4 Implementing Agency Background www.utzchecomunitaria.org The Ut’z Che was a community-based organization partner for the GEF Regional Project (Integrated Ecosystem Management in Indigenous Communities in Central America), contributing to the supervision of sub-projects. Ut’z Che was created in 2006 by 16 community-based organizations, including peasants and indigenous organizations. One of the main objectives it to represent the interest and demands of local communities in sector issues, participation on public policy decision-making, and forest and natural resources management. Ut’z Che’s main concern is to work together with the communities building their capacity in the sustainable use and management of the natural resources. It promotes the use of agroforesty and helps communities to have access to fair market and to commercialize their products. It is implemented the Program of Forest Incentives (PINFOR), and the BOSCON Project and the National Forest program (FAO). It has worked in the imitative FOREST CONNECT which main purpose is to create small forest enterprises and connect them medium and large enterprises. It has been creating a network of information services and information sharing with the purpose of developing strategic alliances to protect the forest and provide a sustainable source of income to low-income households while doing so. 2.5 Other institutions/NGOs that will be involved in implementation The Central America Indigenous and Peasant Coordination Association for Community Agroforestry (ACICAFOC) is an association of community-based organizations. It is apolitical, non-religious and it is devoted to working with rural communities, especially indigenous people and afro-descendants in Central America. It supports activities and projects at the regional, national and community levels to strengthen local socio-productive integration, eco-development and social inclusion. ACICAFOC has successfully executed a GEF Regional Project (Integrated Ecosystem Management in Indigenous Communities) and it is implementing a JSDF Project in Nicaragua (Alternative Indigenous and Afro- descendants Sustainable Agroforestry Management). ACICAFOC has about 27 permanent staff members in addition to the consultants working in projects in Nicaragua, Honduras and Costa Rica. The 2011 budget is about US$2.0 million. www.acicafoc.org 3. INNOVATION AND SUSTAINABILITY 3.1 Innovation The Grant will pilot an integral approach to fight food insecurity. It will test how to build the resilience capacity of local communities to manage agricultural risk and acct accordingly. To achieve that objective the Grant will pilot mechanisms to work at community level from assessing their risk, planning production – irrigation and harvesting techniques to increase their resilience capacity to cope with food insecurity. More specifically, the Grant will pilot from the socio-development point of view ways to link innovative aspects such as; first, importance of social decision-making before, during and after the crisis or disaster (risk management); second, the use of technology is more effective if sustainable disaster mitigation is viewed within the context of building social resilience at community level and; third, the preparation of community-based preparation disaster management to cope with drought. From the technical point of view the innovative aspects are the following first, the development of agroforestry; second, the development of a mixed production system to minimize the agricultural risk (use of more resilient species); third, the development and maintenance of rainwater harvesting for home and irrigation usage; fourth, the installation of sun-motor (solar) pumps; and fifth, the development and maintenance of on-farm post harvesting and storage systems. 3.2 Sustainability The piloting of an integral approach to fight food insecurity and build the capacity of communities to cope with food insecurity would outline the lessons learned needed to prepare a larger Project and support the WB agriculture and rural development and the Global Food Response Program agendas. Additionally, The Guatemala Secretariat of Food Security (Seguridad Alimentaria- Mr. Carlos Cazali, Deputy Secretariat – SESAN-) expressed the interest of the GOG to be informed and participate as much as possible to use the grant as a model to prepare the national food security program. The resilience capacity of beneficiaries to ameliorate the impact of disaster, drought, and climate change on a sustainable basis will be built using the following instruments: (i) identify social decision-making affecting the drought risk management; (ii) prepare jointly with the population a risk management action plan; (iii) identify peoples’ main capacity building needs (agriculture and risk management); (iv) design training to respond to their needs; (v) provide sustained agricultural extension services during the life of the Project; (iv) work with beneficiaries in the identification of indicators and a monitoring and evaluation system for them to be able to assess in the future, the effectiveness of their actions and investments; (vi) build their management skills (computer and software) to be able to quantify results, assess risk and manage loss; (vii) work with beneficiaries on ways to create a system to maintain the technologies and investments (production, rain water harvesting and post harvesting); (viii) organize a mid-term review meeting to evaluate the adequacy and pertinence of manuals and guidelines and prepared and update them accordingly to the lessons learned acquired during the first years of implementation. Finally, results of the Project will be disseminated to government authorities, JSDF, WB and other donors and communities to discuss policy framework and approaches to build the resilience capacity of the most vulnerable communities and to explore replication possibilities. 4. CONSULTATION WITH JAPANESE DEVELOPMENT PARTNERS 4.1 Name of Satoshi Morita, First Secretary and Hydeyuki Takaoka, Date of Meeting 6/2/2011 Representative Assistant Secretary Technical and Financial Cooperation. 4.2 Summary of Consultation: Summary o f the consultations will be provided once these are completed. Mr. Paredes explained the objectives and scope of the Project and the possibilities to scale up lessons learned into larger WB activities in Guatemala. 4.3 Potential Collaboration: Functionaries of the Japanese Embassy and of JICA expressed their support to the activity and conveyed the possibilities to coordinate with other operations the JICA is currently supporting in Guatemala with SESAN and MAGA. 4.4 Name of Date of Meeting 6/2/2011 Representative 4.5 Summary of Consultation: Ms. Morita and Ms. Takaoka expressed particular interests in the fact of the lessons learned to be able to scale up the project results in Guatemala and elsewhere. In particular in the area of food security in the Dry-Corridor. They are looking forward that the Ministry of External Relations of Japan will send them the proposal to formally express their comments. 4.6 Potential Collaboration 5. JAPANESE VISIBILITY 5.1 Confirm that a grant signing ceremony will take place in the recipient country, including Agreed representatives from the Embassy of Japan, and that a press release will be issued in local newspapers 5.2 Confirm that the Embassy of Japan in the recipient country will be invited to participate in field Agreed visits and Project events, and will receive copies of progress review mission reports 5.3 Describe the measures, other than the above, to be taken to ensure the visibility of Japan’s contribution : The information, consultation and participation strategy will mention the objective of the Project and the sources of funding. The Embassy and Japanese International Cooperation Agency (JICA) officials will be invited to the launching of the Project and to the workshop. All Project documentation (brochures, agreements, letters, etc) will indicate the logos of the participating members – JSDF- WB and Ut’z Che. 6. DETAILED DESCRIPTION OF GRANT COMPONENTS 6.1 Component 1 Building the capacity of Indigenous Peoples and Peasants to raise agricultural $ 1,154,000.00 productivity. During the last few years, different donors have been working to help indigenous peoples and peasants cope with hunger and famine in the Dry-Corridor of Guatemala. Most of the help has materialized in providing food and seeds and in emergency relief. Most help has been short-term, band aid solutions to what seems to be more of a long-term need requiring sustainable and integral solutions. A.- Information-Consultation and Participatory Strategy. The specific activities are: 1. Project staff will prepare a strategy to inform the potentially beneficiary communities of the Grant, its objectives and available instruments. The Project will adopt participatory mechanisms to ensure that beneficiaries are well informed and consulted, taking into account their culture, beliefs, and values, forms of organization and gender distribution of labor. Messages will be delivered in their native language, especially in the presence of monolingual groups. This strategy will also convey the message that the Project supports equal opportunity of genders and age groups. The Project will hire promoters of both genders and indigenous peoples and peasants to facilitate communication with women and ethnic communities. This strategy is a cross-cutting activity of the Project. B.- Agroforestry and Mixed Farm Production.- The Project will provide technical assistance for farm planning, agroforestry and mixed agricultural systems (resilient species and seeds). To achieve the objective, the Project will prepare methodological packages to train small-scale farmers in the use of Sustainable Agroforestry (SAF) and Agricultural mixed systems to build their capacity on farm use planning. The Project, by using participatory mechanisms, will identify community-based organizations and small-scale farmers of both genders to be trained in SAF and on mixed-farm land use planning. The specific activities are: 1. Assessment of the Agriculture Production and Risk Management. Project will hire specialized consultants and/or a firm to assess to work with the local communities to identify decision-making –as a community and as smallholder farmers. One of the deliverables will be the preparation of a risk management plan including specific actions to overcome vulnerability all over the risk-cycle (before, during and after the impact). The consultants and/or firm will also determine the production conditions, technologies, productivity levels and the profitability of the production. This work will specifically determine how farms and production is organized One of the deliverables of this consultancy is to help beneficiaries to prepare a business plans and cost production budgets that will help them to plan and prepare a model useful to: (i) developing an end-of-the year economic business analysis of the farm; (ii) projecting next-year’s production income under various production and marketing scenarios; (iv) determining the economic benefit of adopting new technology; (v) adjusting operation to improve efficiency and controlling costs, 2. Strengthening Sustainable Agroforestry Systems (SAF). The Project will provide technical assistance to train beneficiaries on the advantages of the agroforestry systems to increase productivity and economic benefits, while preserving ecosystems. The Project will train beneficiaries through workshops, establishing demonstration nurseries, and “farm-schools”, in addition to the regular individual monitoring visits to the farms. The training will include World Bank Safeguards (Environmental Assessment, Pest Management, Forests, Safety of Dams, and Indigenous Peoples,among others). While executing this activity, the Project will work with academic and research institutions (Universidad de San Carlos, Zamorano, and CATIE, among others) to facilitate access to plant stock and seeds suitable to the soil conditions of the region. 3. Introducing and Strengthening Mixed-Farms and Agricultural Risk Management. The Project will pilot forms of mixed-farming, including the cultivation of different crops in the same field, such as varieties of grains and/or varieties of the same crop with different life cycles. The idea is to use the land space more efficiently and spread the risk more uniformly throughout the year. 4 Providing Maintenance and Entrepreneurial Training. To build the entrepreneurial capacity of the beneficiaries, the Project will hire specialized consultants to train the beneficiaries, through learning-by-doing, in the preparation of businesses plans; finance and accounting, business management; basic software and computer usage; and monitoring and evaluation. The ultimate objective is to strengthen the capacity of the communities to monitor the effectiveness of the techniques introduced. C.- Introducing and Strengthening the Capacity of Indigenous Peoples and Peasants in Rainwater Harvesting and Micro Irrigation. Water shortage for agriculture is increasingly recognized as one of the major constraints to raise productivity in agriculture, and subsequently, to improve the lives and livelihoods of the rural population, specifically the most vulnerable groups, such as indigenous peoples and peasants. Agriculture in the Dry-Corridor is affected by inadequacy and unreliability of rainfall, and consequently, by droughts. The Project will provide technical assistance to determine the most suitable and sustainable water technologies that, if properly used, can provide water to increase agricultural productivity. The specific activities are: 1. Water Availability Study. The Project will hire the services of a specialized firm or constraints to carry out a study of water availability in the selected communities. This study will clearly identify the best technical options with high irrigation efficiency at lower cost and with higher environmental protection guarantees. 2. Rainwater Harvesting. The Project will hire the services of specialized firm or consultants and/or firms to train the beneficiaries in rainwater harvesting, which is a technology used for collecting and storing rainwater from rooftops, the land surface or rock catchments using simple techniques such as jars and pots. Beneficiaries will be trained on how to build and maintain collection devices and conveyance systems. The ultimate objective is to train the communities in how to harvest rain water. a. Rainwater Harvesting for Irrigation. The Project will hire the professional services of a firm or consultants to work with the communities in identifying the most suitable technologies for the beneficiaries; among these, drip irrigation. 3. Pumps operated by sun-motors (solar panels). The Project will hire professional services of a firm or consultants to identify and install custom-designed solar power system pumps to meet the requirements and needs of the beneficiaries. 4. Maintenance and Building local Capacity. The Project will hire consultants and/or a firm to train beneficiaries in the use and maintenance of rainwater harvesting and micro-irrigation. D.- Building the Capacity of On-Farm Harvesting or Storage. Significant amount of grains are lost after harvest because of the use of inadequate storage systems. The Project will pilot interventions in PHL reductions, as it is an important element to reduce food insecurity. Improving productivity and introducing environmentally friendly practices have to be accompanied by specific activities to reduce PHL in order to develop integral approaches to attack food insecurity. Grains should be dried in such manner that damage to the grain is minimized, keeping the moisture levels low to reduce growing mold and other fungal species during storage. This includes hygienic and innocuous practices. The Project will provide technical assistance to pilot on-farm harvesting and/or storage forms suitable to the weather conditions of the region. To achieve this objective, the Project will identify, jointly with the beneficiaries using participatory mechanisms, the best ways to enhance storage practices while promoting cultural acceptability. The Project will pilot the use of post harvesting technologies as metal silos and will train beneficiaries of both genders in building and maintaining metal silos for harvesting and storage. This technique can be used to harvest grains for self-consumption and for commercialization, linking small-farmers to markets. The Project will finance the following specific activities: 1. Building post harvesting Metal Silos. The Project will hire the specialized services of a consulting firm and/or consultants to train the beneficiaries in building small and medium size metal silos capable of storing from 50 to 200 kilos of grain. 2. Maintenance. The Project will train the community in innocuous practices and food safety during the harvest and storage period. The Project will develop a community-based methodology to ensure that the knowledge is spread in the region by training community-based practitioners of both genders, thus contributing to build the capacity of other community members. Outputs: 1. Information, Consultation and Participation Strategy. 2. Agricultural production report; risk assessment and community-based agricultural risk management plan 3. Agroforestry and mixed agricultural systems guidelines and/or manuals. 4. Water Availability Study. 5. Rainwater harvesting and irrigation system guidelines and/or manuals. 6. Post harvest Metal silos guidelines and/or manuals. 7. Business plans, financial and administrative guidelines. 6.2 Component 2 Community Development Investments $ 1,000,000.00 1. Sub-Projects / Grants. The Project will finance sub-projects to at least 1,000 small-scale indigenous and peasant producers of both genders. The sub-projects will be awarded to a group of small-scale indigenous and/or peasant farmers. In the region, peasants and indigenous communities have community-based organizations and cooperatives. The grant will work with these already organized community-based organizations, but it will also facilitate the organization of new groups – such as group of small-female farmers to allow the participation of other groups. The target beneficiaries will have about 1 hectare that will be used as part of the sub-Project. Funding for the sub-projects will be awarded following a standard application form and proposal (as a CDD). The Project will help the beneficiaries walk through the procedures for preparing the proposal and the application. A specialized committee will be formed with the participation of academic and research institutions and local indigenous and peasant community-based organizations to review and approve the group proposals. Eligible expenditures of the sub-projects are, for instance (i) materials: plant materials, certified seeds, organic inputs, farmer appropriate books, manuals, and guides, irrigation turbines; (ii) tools: grafting knives, gloves, pruning tools, hoes, machetes, etc; (iii) equipment: backpack sprayer, small water pumps, small-scale processing equipment, etc; (iv) services: land preparation, technical assistance; (v) pumps-sun-motor powered; (vi) materials to build the rainwater harvesting systems; and (vii) materials to build post harvesting metal silos. A preliminary estimated cost per beneficiary is US 1,000. The sub-Projects and/or grants would average up to US$25,000.00. 1.- Reports on approved sub-projects, including amount, number of beneficiaries. Outputs: 6.3 Component 3. Project Management, Monitoring and Evaluation, and Knowledge Dissemination $ 353,050.00 1. Administration of the Project. This activity will support the establishment and operation of a Project Coordination Unit, comprising a lean team responsible for the administration and fiduciary management of the Project. This component is linked to the organization of a Project Coordinating Unit administered by Community- based Agroforestry Association of Guatemala Ut’z Che. The Agroforestry Coordinating Association of Indigenous Peoples and Farmers (ACICAFOC) will provide technical support and will contribute to overseeing implementation of the Project. 2. Participatory Monitoring and Evaluation. To be able to measure impact results and adequate backstopping, the Project will prepare a baseline of the main characteristics of the beneficiaries, the farms and production characteristics. Specific indicators will be prepared as well as a program to download the information/ indicators of the farmers, farms, forms of production, inputs and technical assistance received to be able to measure their productivity level before and after the Project. The Project will produce a detailed database of the beneficiaries, their production capacity, and farm productivity to have a detailed idea of their characteristics before and after the Project. The Project will hire the services of a consultant to prepare the survey, outcome indicators and the M&E matrix. Indicators will be identified with the beneficiaries. The ultimate objective is that the Project will design a participatory monitoring and evaluation system to ensure that the capacity of the beneficiaries is built in this respect. 3. Knowledge Dissemination: The Project will hire a consultant to prepare a strategic plan to enable the beneficiaries to share experiences with other producers in the country and in the Dry-Corridor. This will include workshops and meetings with key government institutions and professional chambers. This activity embodies all the information and knowledge sharing of the Project. Outputs: 1.- Project Implementation reports. 2.- Indicators, baseline and monitor and evaluation system, including database. 3.- Workshop and/or meetings. 4.- Financial and fiduciary reports. 5.- Impact Monitoring and Evaluation reports. 6.- Audit reports. 7.- Implementation Completion Report. 7. ELIGIBLE EXPENDITURES List all applicable eligible expenditures below in one or more categories as necessary. Eligible expenditures include consultant services (including audits), local training and workshops, small civil works, goods, sub-grants, and Bank incremental costs. Category Amount (US Dollars) Percentage of Percentage of Expenditures to Grant Total be Financed Disb-Consulting 421,050.00 100 16.7 Disb-Training 962,000.00 100 38.4 Disb-Goods 4,000 100 0.2 Disb-Civil Works 100 Disb-Other 1,000.000 100 40.0 Disb-Operating Cost 120,000 100 4.7 Total Grant to Recipient $2,507,050 Bank Incremental Costs 225,630 Total Grant Amount: 2,732,680 OPERATIONAL RISKS ASSESSMENT FRAMEWORK Risk Category Risk Risk Description Proposed Mitigation Rating Project Beneficiaries Modest risk Low implementation capacity and Training packages in technical options and Stakeholders experience in managing sub-projects. and in administration and financial Risks management. The WB will train beneficiaries in fiduciary, acquisitions rules and procedures as well as in social and environmental safeguards. The role of the Information- Consultation and Participation Strategy and the job description of the Promoters will work in building the capacity of beneficiaries in WB safeguards and ways to implement them in the Project. Implementing Agency Modest Although the proposed implementing ACICAFOC will contribute to training Risks risk agency worked as a partner the implementing agency in institution for ACICAFOC and as a administration and fiduciary procedures. focal point for the implementation of the GEF Regional Project (Integrated The WB will ensure that implementing Ecosystem Management in agency is trained in WB fiduciary and Indigenous Communities in acquisitions rules and procedures as well Guatemala), its execution capacity as in social and environmental needs to be strengthened. safeguards. Project Risks: Design Negligible Project design involves an integral Training packages in technical options to or low strategy from production to ensure successful implementation. The risk harvesting. Proposal has been training aims at providing tools to place consulted with Ut’z Che and in practice environmentally sound ACICAFOC. Both organizations agriculture following a holistic and have provided their inputs and integral approach is applied – cultivation comments and have agreed with the – irrigation – harvesting and development objective and activities. commercialization. Social and Modest Technologies will contribute to Activities and training to set in place Environmental risk produce positive environmental and technological packages will be the first social impacts in the communities. activities of the Project, including environmental and social safeguards. From the social point of view, there Coordinating Unit will work is always the risk when immediately in the preparation of the implementing collective sub-projects. POA –PAC. However, peasants and indigenous peoples in Guatemala have a long To mitigate the potential social risk the history of collective land tenure and information, consultation and development of communal and/or participation strategy will be designed collective agriculture. and implemented to ensure that people, mainly women and youth, are properly Natural disasters, including storms informed and consulted and that their and erratic and irregular rains could participation is properly fostered using jeopardize the success of the Project. their languages and cultural codes. JSDF Program Negligible Involvement of the Japanese Officials and authorities of the Embassy and Donor or low Embassy and JICA officials in the and JICA will be invited to the launching risk country. of the Project and to workshops. They will also receive copies of the monitoring and evaluation reports. Delivery Modest Implementing agency has limited ACICAFOC will coach and oversee the Quality risk experience with WB reporting, implementing agency. The Bank will management, fiduciary, social and keep a sustained supervision strategy. environment. . Special attention will be placed in monitoring and evaluation reports, acquisitions and financial reporting. JSDF -- DETAILED COST TABLE COUNTRY: GUATEMALA GRANT NAME: STRENGTHENING MAYAN INDIGENOUS PEOPLES AND PEASANTS TO FACE FOOD SECURITY AND CLIMATE CHANGE DATE: JUNE 2011 Components & Activities Expenditure Procureme Quantit Unit Label Unit Total Cost /a Category nt Method y Cost (US$) 1/ (US$) 1. COMPONENT 1. BUILDING CAPACITY OF INDIGENOUS PEOPLES AND PEASANTS TO RAISE AGRICULTURAL PRODUCTIVITY ACTIVITY A: INFORMATION-CONSULTATION AND PARTICIPATORY STRATEGY $ CONSULTANTS CONS 80,000.00 man/mont 1,000.0 $ 4 Promoters (nat'l) CONS IC 80 h 0 80,000.00 $ TRAINING TRG 108,000.00 Training package( workshops 12 communities per year) (*) per 1,000.0 $ transportation 36 workshop 0 36,000.00 per $ stipend 36 workshop 500.00 18,000.00 per $ acommodation 36 workshop 500.00 18,000.00 per $ rent 36 workshop 700.00 25,200.00 per $ training materials 36 workshop 300.00 10,800.00 $ Subtotal Activity 1.A: 188,000.00 ACTIVITY B: AGROFORESTRY AND MIXED FARMS PRODUCTION a) Introduce and Strengthening SAF $ CONSULTANTS CONS 15,000.00 man/mont 5,000.0 $ Technical Assistance (int'l institution) CONS QCBS 3 h 0 15,000.00 $ TRAINING TRG 240,000.00 Training package (2 workshops per community) per 1,000.0 $ transportation 40 workshop 0 40,000.00 per 1,000.0 $ stipend 40 workshop 0 40,000.00 per 1,000.0 $ acommodation 40 workshop 0 40,000.00 per $ rent 40 workshop 500.00 20,000.00 per 2,500.0 $ training materials 40 workshop 0 100,000.00 b) Introduce and Strengthening Mixed Farms and Agricultural Risk Management $ CONSULTANTS CONS 15,000.00 man/mont 5,000.0 $ Technical Assistance (int'l institution) CONS QCBS 3 h 0 15,000.00 $ TRAINING PACKAGE TRG 240,000.00 Training package (2 workshops per community) per 1,000.0 $ transportation 40 workshop 0 40,000.00 per 1,000.0 $ stipend 40 workshop 0 40,000.00 per 2,000.0 $ training materials 40 workshop 0 80,000.00 per 2,000.0 $ nursery 40 workshop 0 80,000.00 c) Maintenance and Entrepreneurial Capacity Building $ CONSULTANTS CONS 20,000.00 man/mont 5,000.0 $ Agriculture Risk assessment and Planning (Int't) 1 h 0 5,000.00 man/mont 5,000.0 $ Agroforestry (Int'l and/or Nat'l) 1 h 0 5,000.00 Hidrologist and water assessment specialist (int'L man/mont 5,000.0 $ &/or Nat'l) 1 h 0 5,000.00 $ - Participatory monitoring and evaluation man/mont 5,000.0 $ specialist (Int'l and or nat'l) 1 h 0 5,000.00 $ TRAINING TRG 120,000.00 Training package (1 workshop per community) per 1,000.0 $ transportation 20 workshop 0 20,000.00 per 1,000.0 $ stipend 20 workshop 0 20,000.00 per 2,000.0 $ training materials 20 workshop 0 40,000.00 per 2,000.0 $ nursery 20 workshop 0 40,000.00 $ Subtotal Activity 1.B 650,000.00 ACTIVITY C: INTRODUCING AND STENGHTENING MIXED-FARMS AND AGRICULTURAL RISK MANAGEMENT CONSULTANTS CONS $ 54,000.00 man/mont 5,000.0 $ Water availabity study (int'l) CONS QCBS 3 h 0 15,000.00 man/mont 5,000.0 $ Rainwater harvesting training (int'l) CONS QCBS 3 h 0 15,000.00 man/mont 3,000.0 $ TA for pumps operatedy by sun-motors (nat'l_ CONS IC 4 h 0 12,000.00 TA for maintenance and building local capacity man/mont 3,000.0 $ (nat'l) CONS IC 4 h 0 12,000.00 $ TRAINING TRG 120,000.00 $ Workshops (1 workshop per community) - per 1,000.0 $ transportation 20 workshop 0 20,000.00 per 1,000.0 $ stipend 20 workshop 0 20,000.00 per 2,000.0 $ training materials 20 workshop 0 40,000.00 per 2,000.0 $ nursery 20 workshop 0 40,000.00 $ Subtotal Activity 1.C: 174,000.00 ACTIVITY D: BUILDING THE CAPACITY ON ON-FARM HARVESTING OR STORAGE $ CONSULTANTS CONS 22,000.00 man/mont 5,000.0 $ TA for building metal silos (int'l institution) CONS QCBS 2 h 0 10,000.00 TA for community based methodology for man/mont 3,000.0 $ maintenance (nat'l) CONS IC 4 h 0 12,000.00 $ TRAINING TRG 120,000.00 Training package(1 workshop per community) per 1,000.0 $ transportation 20 workshop 0 20,000.00 per 1,000.0 $ stipend 20 workshop 0 20,000.00 per 2,000.0 $ training materials 20 workshop 0 40,000.00 per 2,000.0 $ nursery 20 workshop 0 40,000.00 $ Subtotal Activity 1.D 142,000.00 $ TOTAL COMPONENT 1 1,154,000.00 $ SUBTOTAL COMPONENT 1: 1,154,000.00 2. COMPONENT 2. COMMUNITY DEVELOPMENT INVESTMENTS 1,000.0 $ SUBPROJECTS SUB-P subgrants 1000 Benef. 0 1,000,000.00 $ TOTAL COMPONENT 2 1,000,000.00 $ SUBTOTAL COMPONENT 2: 1,000,000.00 COMPONENT 3: PROJECT MANAGEMENT, MONITORING AND EVALUATION ACTIVITY A: MONITORING AND EVALUATION $ CONSULTANTS CONS 80,000.00 Base line and final evaluation, M&E Specialist man/mont 1,500.0 $ (nat'l) CONS IC 36 h 0 54,000.00 man/mont 5,000.0 $ MIS Consulting Firm (nat'l0 CONS QCBS 4 h 0 20,000.00 man/mont 1,500.0 $ Evaluation Especialist (nat'l) CONS IC 4 h 0 6,000.00 $ GOODS GOODS 4,000.00 1,000.0 $ Computer equipment GOODS shopping 4 package 0 4,000.00 $ - $ Subtotal Activity 3.A 84,000.00 ACTIVITY B: DISSEMINATION AND NETWORKING $ CONSULTANTS CONS 10,050.00 man/mont 3,350.0 $ Consultant for developing stragtegic plan (nat'l) CONS IC 3 h 0 10,050.00 $ TRAINING TRG 14,000.00 Training package (4 events last year of project implementation) TRG per 1,000.0 $ transportation 4 workshop 0 4,000.00 per $ stipend 4 workshop 500.00 2,000.00 per $ acommodation 4 workshop 500.00 2,000.00 per $ rent 4 workshop 700.00 2,800.00 training materials 4 per 800.00 $ workshop 3,200.00 $ - $ Subtotal Activity 3.B 24,050.00 ACTIVITY C: PROJECT MANAGEMENT $ CONSULTANTS CONS 105,000.00 man/mont 2,300.0 $ Project coordinator (nat'l) CONS IC 30 h 0 69,000.00 man/mont 1,500.0 $ Financial Specialist (nat'l) CONS IC 24 h 0 36,000.00 $ OPERATING COSTS 120,000.00 14,000. $ Rent OPC 3 per year 00 42,000.00 10,000. $ Office supplies OPC 3 per year 00 30,000.00 16,000. $ Utilities OPC 3 per year 00 48,000.00 $ Subtotal Activity 3.C 225,000.00 ACTIVITY D: AUDITS $ CONSULTANTS CONS 20,000.00 man/mont 5,000.0 $ Auditing firm (nat'l) -2 audits) CONS LCS 4 h 0 20,000.00 $ Subtotal Activity 3.D 20,000.00 $ TOTAL COMPONENT 3 353,050.00 TOTAL PROJECT COST (RECIPIENT $ GRANT) 2,507,050.00 $ TOTAL BANK SUPERVISION GRANT 9% 225,630.00 $ PROPOSED TOTAL JAPAN GRANT 2,732,680.00