The World Bank South Sudan Resilient Agricultural Livelihoods Project (P169120) Project Information Document (PID) Appraisal Stage | Date Prepared/Updated: 07-Apr-2021 | Report No: PIDA30133 Dec 16, 2020 Page 1 of 25 The World Bank South Sudan Resilient Agricultural Livelihoods Project (P169120) BASIC INFORMATION OPS_TABLE_BASIC_DATA A. Basic Project Data Country Project ID Project Name Parent Project ID (if any) South Sudan P169120 South Sudan Resilient Agricultural Livelihoods Project Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) AFRICA EAST 13-Apr-2021 13-May-2021 Agriculture and Food Financing Instrument Borrower(s) Implementing Agency Investment Project Financing Ministry of Finance and Ministry of Agriculture Planning and Food Security Proposed Development Objective(s) The project development objective is to strengthen capacity of farmers and their organizations and improve agricultural production. Components Capacity Building in Good Agricultural Practices Investment Support for Improved Agricultural Production Project Management and Technical Assistance Contingent Emergency Response PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 62.50 Total Financing 62.50 of which IBRD/IDA 62.50 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Development Association (IDA) 62.50 Dec 16, 2020 Page 2 of 25 The World Bank South Sudan Resilient Agricultural Livelihoods Project (P169120) IDA Grant 62.50 Environmental and Social Risk Classification High Decision The review did authorize the team to appraise and negotiate B. Introduction and Context Country Context 1. South Sudan, home to 12 million people and 64 ethnic groups, is characterized by high levels of poverty and food insecurity. The country is rich in natural resources including rivers, arable and pasture land, livestock, fisheries, forests, wildlife, precious stones, metals, petroleum, minerals, hardwoods and limestone. South Sudan is one of the most oil dependent countries in the world. Oil, which accounts for a 40 percent share of Gross Domestic Product (GDP)1 and 90 percent of export earnings, is the mainstay of economy. Key exports are crude petroleum, forage, raw cotton, dried legumes and gold2. While rich in resources, South Sudan is one of the poorest countries in the world, owing to a combination of prolonged conflict, poor governance, economic mismanagement, and climate shocks. The South Sudanese are chronically vulnerable, and according to recent estimates, 82 percent can be designated poor, based on the US$1.90 2011 Purchasing Power Parity (PPP) poverty line3. The country ranks second to last in the World Bank’s Human Capital Index 2020, Among several factors, this rating is based on low life expectancy (only 68 percent of 15-year old are expected to survive to age 60), inadequate education (approximate average grade level 2.5), and stunting affecting 31 percent of children. Roughly half the population is severally food insecure and 1.8 million suffer from acute malnutrition. 2. South Sudan has a long and volatile history. After two civil wars over almost 50 years, South Sudan gained its independence in July 2011. Intermittent conflicts with Sudan, age-old inter-communal conflicts, and failed attempts at negotiating a peaceful settlement4 resulted in the loss of U$99 million in monthly oil revenues in 2012, In December 2013, armed conflict erupted between government forces and opposition groups, resulting in the displacement of over one million civilians and a two-fold increase in the number of severely food insecure people. The September 2018 Revitalized Agreement on the Resolution of the Conflict in South Sudan (R-ARCSS) called for the establishment of a Revitalized Transitional Government of National Unity (RTGoNU). Owing to political differences, formation of the RTGoNU met several roadblocks and it was not established until February 22, 2020. Conflict is growing at the sub-national level, fuelled by intercommunal violence, the state capture of resource and power struggle amongst the ruling political 1 https://www.worldbank.org/en/country/southsudan/overview 2 https://oec.world/en/profile/country/afssd 3 https://www.worldbank.org/en/country/southsudan/overview 4 Between South Sudan and the former Sudan Dec 16, 2020 Page 3 of 25 The World Bank South Sudan Resilient Agricultural Livelihoods Project (P169120) groups, distrust of government, dispute over representation, and a legacy of unresolved grievances. The communal violence is driven by disputes over access to natural resources, including land and water, food and services, while elites incite discord for economic and political gains. The traditional cattle culture, shared among the the Nuer, Dinka, and Murlea tribes is based on a cycle of rustling and, to this day, remains a source of conflict and displacement more recently. 3. South Sudan’s economy collapsed in 2016 and recovery has been slow. Increased conflict in 2013, a fall in oil production, poor economic management and a resistance to reforms undermined economic growth and other gains achieved after the 2005 Comprehensive Peace Agreement (CPA). Despite an abundance of natural resources, Foreign Direct Investment (FDI) has been slow in the face of insecurity and corruption. GDP contracted by 11.2 percent, 6.9 percent and 3.5 percent in 2016, 2017 and 2018 respectively. In 2019, GDP was US$4.9 billion, with per capita income at US$375. Inflation remains high, and the value of the local currency might depreciate further in part owing to low foreign exchange reserves and limited capacity to service existing debt5. 4. South Sudan is heavily reliant on foreign aid to deliver basic needs. Real incomes have declined 50 percent since 20136. Food prices remain high and the cost of the minimum expenditure basket increased by 489 percent between May 2016 and May 2018. Household income is primarily and increasingly spent on food: during the December 2018 harvest, 52 percent of the population was spending more than 75 percent of their income on food7. The outbreak of the COVID-19 pandemic, resulting lower oil prices, combined with adverse weather conditions, flooding and desert locust infestation8, is aggravating already fragile dynamics, and the economic projections for 10.3 percent economic growth in FY19-20 have now been revised to 4.3 percent. FY20 fiscal deficit is estimated to increase from 5.9 percent to 7.2 percent of GDP. In the backdrop of COVID-19, prices of basic commodities surged by 30 percent to 150 percent in 2020. Food prices experienced a surge of 105 percent year over year in April 2020. According to a Household Monitoring Survey in June 2020, half of all households report a fall in income since the start of the pandemic9, about 45 percent reported not being able to buy their main staple food at some point in time since containment started’. The volatile political environment encourages more budget allocation for security which further reduces the fiscal space for public investments, government sector salaries and food imports10. 5. South Sudan has not achieved food self-sufficiency since 200911. Cereals, primarily sorghum and maize, millet and rice are the dominant staple crops. Underinvestment (only 0.3 percent of national budget in 2019 against the recommended 10 percent of the annual budget by Malabo Declaration) in agriculture, economic and market impact of conflict, population displacement, low crop yields, climate shocks and difficulty for 5 SAEF3 food security briefing, August 31, 2020 6 IMF (2016), IMF staff completes 2016 Article IV mission on South Sudan, Press release No. 16/556. www.imf.org/en/News/Articles/2016/12/13/pr16556-IMF-Staff-Completes-2016-Article-IV-Mission-on-South-Sudan. 7 FAO (2020). Special Report – 2019 FAO/WFP Crop and Food Security Assessment Mission to the Republic of South Sudan. CFSAMs Special Reports – May 2020. https://doi.org/10.4060/ca9282en 8 FAO (Food and Agriculture Organization of the United Nations). Desert Locust situation update (13 July 2020) 9 Finn, Arden and von der Goltz, Jan. 2020. Monitoring COVID-19 Impacts on Households in South Sudan: Results from a High- Frequency Phone Survey of Households. 24 July 2020. 10 World bank (2020), Jobs, Recovery, and Peacebuilding in South Sudan, Synthesis Report (P168807). Draft document, July 1, 2020. 11 World Bank (2020), Reviving markets and market-linked agriculture in South Sudan. Draft document, March 16, 2020. Dec 16, 2020 Page 4 of 25 The World Bank South Sudan Resilient Agricultural Livelihoods Project (P169120) human access are some of the key factors for worsening food insecurity in South Sudan12. Insufficient local food production has led South Sudan to become net food importer with an estimated gap of 483,000 mt in 2020 (7 percent lower than 2019, but 22 percent higher than the previous five years average)13. Figure 1: South Sudan Cereal Deficit Trend (thousand metric tons) 6. Years of conflict, economic crisis, climate shocks and displacement destroyed productive capacity, markets, road infrastructure, and the social and economic institutions that supported agriculture, as well as created a humanitarian crisis. As of August 2020, nearly 3.8 million people were displaced. Of those, 1.6 million are Internally Displaced Persons (IDPs) and 2.26 million are international refugees. Throughout the year, there are consistently about 7.5 million people in need of humanitarian assistance. About 6.48 million people (54 percent of total population) experience food security crisis Integrated Food Security Phase Classification14 (IPC) Phase 3) or worse15. The number of people in IPC3 (crisis) trends upward in the lean season, which reaches its height around July/August and then trends downward after harvest starts in September. Nevertheless, the number of food insecure people is among the highest in the world and the fluctuation has lessened over time and the total number of people in IPC3 or worse has steadily increased. Essentially the status of food security reversed between 2014 and 2020. Figure 2: Number of People affected by Food Insecurity (millions) 12 World Bank (2020), South Sudan Conflict Economy, chapter “Agricultural and Food Insecurity Dynamics (2006-2020)�. Draft document, July 9, 2020 & United Nations Security Council (2019). Letter dated 9 April 2019 from the Panel of Experts on South Sudan addressed to the President of the Security Council (S/2019/301). https://digitallibrary.un.org/record/3801695?ln=en 13 FEWS NET (2020), South Soudan Security Outlook, June 2020 to January 2021. https://fews.net/east-africa/south-sudan/food- security-outlook/june-2020 14 Integrated Food Security Phase Classification (IPC) is a tool for food security analysis and decision making using a standardized 5-phase scale (1=minimal stress, 2=stress, 3= crisis, 4=emergency, and 5=famine. For more details, see http://fews.net/sectorest%C3%B3picos/abordagem/classifica%C3%A7%C3%A3o-integrada-de-fases 15 Integrated Food Security Phase Classification. (2020). “South Sudan: IPC Acute Food Insecurity and Acute Malnutrition Analysis for January – July 2020, issued in February 2020� Dec 16, 2020 Page 5 of 25 The World Bank South Sudan Resilient Agricultural Livelihoods Project (P169120) 8.0 6.49 6.0 4.0 5.61 2.0 3.90 1.93 Million people 0.0 2.08 Minimal Stressed Total Crisis, Emergency & Humanitarian Catastrophe Source: IPC South Sudan 7. Gender disparities and inequalities are very high. South Sudan ranks in the bottom third of countries for the Human Development Index (HDI)’s life-course gender gap16 and women’s empowerment17. Before the current crisis, almost 80 percent of women had no education and girls were less likely to attend school. South Sudan has one of the highest maternal mortality ratios in the world, fed by high number of child marriages, low education levels, and extreme poverty. Traditional patriarchal structures keep women out of community leadership and decision-making roles. Women have limited income-generating opportunities and their earnings are often seized by male family members18. Gender-Based Violence (GBV) against women and girls is commonplace, with about 65 percent of women and girls reporting some form of physical or sexual assault in their lifetime19. Key factors that influence GBV include underlying norms and dynamics that underpin gender inequality more broadly and acceptability of use of violence against women and girls, the legacy of conflict and violence, a breakdown of the rule of law and key security institutions to protect against violence, and increases in opportunistic crime often linked to high levels of poverty. 8. South Sudan has made significant strides in creating the policies, institutions and systems for socioeconomic recovery. Their implementation, however, has lagged because financing priorities are skewed towards security and the military. Translating independence into broad-based, sustained development and prosperity remains the central objective of the South Sudan government according to the draft National Development Strategy, 2018-2021. Sectoral and Institutional Context 9. South Sudan has vast agricultural potential. Agriculture, livestock, forestry and fisheries play a significant role in South Sudan’s economy, accounting for 36 percent of non-oil GDP20. With about 80 percent of households listing agriculture as their primary source of livelihood, agriculture plays a central role in the lives of South Sudanese people. It accounted for over 60 percent of female employment and more than one- 16 HDI’s life-course gender gap compiles 12 indicators that analyze gender gaps in choices and opportunities across the lifespan including education, labor and work, political representation, time use, and social protection. HDI’s women’s empowerment dashboard compiles 13 woman-specific empowerment indicators in three categories: reproductive health and family planning, violence against women and girls, and socioeconomic empowerment. 17 UNDP. 2018. Human Development Indices and Indicators: 2018 Statistical Update - South Sudan. 18 For example, while women compose 80 percent of the labor force in agriculture, they have little control over how the fruits of their labor are used/sold or access to income. 19 https://www.rescue.org/sites/default/files/document/2294/southsudanlgsummaryreportonline.pdf 20 FAO/WFP, 2015 “FAO/WFP Crop and Food Security Assessment Mission to Southern Sudan", Special Report Dec 16, 2020 Page 6 of 25 The World Bank South Sudan Resilient Agricultural Livelihoods Project (P169120) third of male employment in 201821. Out of the total land area of approx. 64 million hectares, 50 percent is prime agricultural land, while the remaining 50 percent comprises marginal arable land, forests, mountains, rivers and wetlands. Only a small proportion (4 percent) of the land (2.7 million hectares) is cultivated22. A large part of the country, i.e. southern region, has plentiful water resources. Main crops cultivated are sorghum (70 percent of cereal cultivated area in 201923), maize (22 percent of cereal area), cassava, groundnuts, sesame, pearl and finger millets, beans, peas, sweet potato and rice. While vegetables, peas, beans and fruits are grown primarily for home consumption, most marketable fresh vegetables are imported from Kenya, Sudan and Uganda24. The widely different climactic zones, fertile soil and plentiful rainwater create ideal conditions for meeting national dietary needs plus a surplus for the market. South Sudan has about five times the area of agricultural land per capita compared to Kenya, Uganda or Ethiopia, and could feed itself and several other countries. 10. Agricultural productivity and production in South Sudan remain low. In 2018, average cereal yield (kg/ha) was about 18 percent of South Africa, and about a third (31 – 41 percent) of that of Ethiopia, Kenya or Uganda25. Most farmers are small-scale, operating at a subsistence level with an average farm size of 1.8 ha26. Cultivation is mostly by hand, and often carried out by women which limits the area households can cultivate. Farmers usually do not use any synthetic fertilizer, quality seed, herbicide or pesticide, improved soil and water management practices, which, in part, account for the low yields. Other challenges include knowledge erosion, loss of diversification, poor production practices, destruction of tree crops, high cost of production particularly for labor and inputs, and underdeveloped infrastructure for transportation, irrigation, storage and processing. According to FAO and WFP data, only 2.6 percent of agricultural land was under cereal production in 2017, and cereal production area has not exceeded 3.6 percent of agricultural area since 2010. In order to meet its food security needs, South Sudan would need to significantly increase its productivity or double the cultivation area, both from very low levels, and reduce post-harvest losses currently as high as 40-50 percent. Moreover, conflict, violence and mass displacement continue to force farmers from their fields during key times in the cropping season. It has led to many abandoned farms and a breakdown in agricultural production to supply chains, knowledge and infrastructure. Agricultural markets and value chains have been disintegrated due to protracted conflict and violence, insecurity, looting, loss of assets and tools, significant decline in production, and depressed market demand. Furthermore, high costs and risks, and lack of working capital have forced many traders, processors, aggregators and middlemen out of business or to suspend their activities27. Nevertheless, following the signing of the CPA in 2018, the market activity has shown some signs of recovery, but the range of available goods and services remains very limited. 11. Agriculture and food security in South Sudan are extremely vulnerable to climate shocks. Key climate change factors include unpredictable rainfall pattern, recurrent droughts, floods and excessive heat 21 World Bank (2020), Reviving markets and market-linked agriculture in South Sudan. Draft document, March 16, 2020 and World Bank (2020), South Sudan Conflict Economy, chapter “Agricultural and Food Insecurity Dynamics (2006-2020)�. Draft document, July 9, 2020. 22 FAO, 2019, Seed System Security Assessment (SSSA) 23 FAO (2020). Special Report – 2019 FAO/WFP Crop and Food Security Assessment Mission to the Republic of South Sudan. CFSAMs Special Reports – May 2020. https://doi.org/10.4060/ca9282en 24 Government of South Sudan (2016), Comprehensive Agriculture Master Plan, Juba. 25 http://www.fao.org/faostat/en/#compare 26 FAO/WFP, 2015 “FAO/WFP Crop and Food Security Assessment Mission to Southern Sudan", Special Report 27 World Bank (2020), Reviving markets and market-linked agriculture in South Sudan. Draft document, March 16, 2020. Dec 16, 2020 Page 7 of 25 The World Bank South Sudan Resilient Agricultural Livelihoods Project (P169120) resulting into crop failures and, hence, causing loss of livelihoods, food insecurity and famine28. Rainfall is one of the main climatic determinants of food production in South Sudan and some analyses suggest that, due to climate change, there has been a shift in the start and cessation of rainfall, leading to more erratic and unpredictable rainfall patterns29. Climate and disaster risk screening indicates that a combination of warmer and drier weather may exacerbate evapotranspiration and droughts, while projected increases in rainfall intensity may increase the risk of floods in Southern Sudan30. Changes in climate will also affect pest infestation patterns, damage crops, damage productive infrastructure, and increase disease vectors. Increasing resilience is, therefore, inextricably linked to risk-sensitive, climate-adaptive knowledge, skills and practices. 12. This project will address the identified climate risks and vulnerabilities by prioritizing investments that help to increase agricultural resilience. This will include building the capacity of farmers and institutions to implement climate-smart agriculture, strengthening the climate-smart agriculture knowledge base, improving access to drought-resistant seeds and other climate-smart technologies, climate-proofing infrastructure and supporting the Ministry of Agriculture and Food Security (MAFS) in integrating climate change into national policies and planning processes. To reduce Greenhouse Has (GHG) emissions from project interventions, the project will also finance activities from the approved list in Annex A.C.1 of the Joint Report on MDB’s Climate Finance31 and the World Bank’s Guidance for Addressing Climate Change Corporate Commitments in Agriculture32. The project activities fully qualify as generating climate change mitigation co-benefits under Category 4.1. Agriculture: Agricultural projects that improve existing carbon pools, from the A.C.1 List of activities eligible for classification as climate mitigation finance. The GHG accounting results is summarized in Section IV, Project Appraisal Summary. 13. Farm production is hampered by the limited availability of and access to quality seeds and planting materials. A recent assessment showed that the informal seed sector contributed almost 85 percent of the overall seed sources used by the farmers in 2018, including own-saved (51 percent), local market (21 percent) and social network (13 percent). Despite the existence of about 13 local seed companies and a few agro-input dealers, their direct supply of seed to farm households is insignificant. The local production by seed companies could only meet about 15 percent of quality seed demand of adapted varieties in 2018. In general, seed aid remains the primary supply channel of quality seeds to farmers, and it contributes to about 14 percent of seed source use. 14. Agricultural mechanization remains low in South Sudan. The limited mechanization has resulted in the absence of production at scale and poor yields of main crops. Predominantly, large scale agricultural mechanization is limited to some areas of upper Nile states, with production of sorghum and sesame as the major crops grown for export to Sudan and other countries. Over the years, the Government has provided 28 WFP/VAM Nairobi Regional Bureau 2014, Climate risk and food security in South Sudan: Analysis of climate impacts on food security and livelihoods 29FSC (Food Security Cluster). Situation Report (17 June 2020)) 30 https://climateknowledgeportal.worldbank.org/country/south-sudan 31 Joint Report on Multilateral Development Bank’s Climate Finance (2019). 32 World Bank (2018). Climate Change Requirements: Guidance Note for Meeting Corporate Requirements in Climate Smart Agriculture https://worldbankgroup.sharepoint.com/sites/Agriculture/Knowledge%20Base/GuidanceNoteClimateChangeRequriementsAgriu lturalOperations.pdf Dec 16, 2020 Page 8 of 25 The World Bank South Sudan Resilient Agricultural Livelihoods Project (P169120) over 400 tractors across the country to mechanize agriculture for increased food production and productivity33. This, however, has not significantly changed the traditional farming practices due to lack of well-trained technicians and tractor operators, spare parts and service centers, and associated equipment and implements. While use of animal traction has also been on the increase, limited supply of plough, spare parts, technical skill in addition to cultural perception on use of cattle for animal traction, have hindered wide adaption and use across the county. Within the primary objective of Agricultural Mechanization Policy Framework (2012 -2017) was to improve efficiency and effectiveness of agricultural production and related operations to sustainably increase crop production and productivity, household incomes, food security and rural economic development. 15. While traditionally women have been central to household farming, their contribution is neither understood nor appreciated due to a prevailing patriarchal system that has led to women’s marginalization. Men and women play complementary roles in agriculture, food and nutrition security, but women often end up with more tasks and more time at work. Roles and responsibilities vary across geographies and ethnic groups, and they are being reshaped by the effects of the armed conflict. Cropping is the main livelihood for 71 percent of female-headed households, followed by wage labor (10 percent). The gender gap in agriculture is found mainly on assets, inputs and services such as land, livestock, labor, education, information services, and technology, all affecting the capacity to protect communities from crises34. 16. The COVID-19 outbreak and desert locust crises pose considerable threat to agriculture and food security in South Sudan. Restrictions on movement, business and cross-border trade impacted commercial activity with Uganda and Sudan, the two main sources of agricultural inputs and food commodities for South Sudan, with a reduction of up to 70 percent of volumes of trucks entering South Sudan35. The current desert locust crisis—the worst to hit the country since 1961—represents an unprecedented threat to agriculture, food security and livelihoods, and could lead to further suffering, and displacement36. Changes in climate have led to increases in cyclones accompanied by water and warmth that encourage extensive proliferation of locust swarms. The continued and combined effects of these factors are expected to further worsen food security situation across the country. Under the aegis of the International Development Association (IDA)- funded Africa Emergency Response Program, a standalone operation is under preparation to control, mitigate and address short, medium- and long-term adverse effects of desert locusts on South Sudanese agriculture. 17. Agriculture has a fundamental role in producing food and generating income for changing levels of malnutrition and enhancing resilience. The latest IPC estimates for 2020 show 1.3 million children and 352,000 pregnant and lactating women subject to acute malnutrition, 292,300 people with severe acute malnutrition and another one million facing moderate acute malnutrition37. Nutrition and resilience are strongly interlinked; households that are nutrition secure are better equipped to withstand external shocks. Nutrition-sensitive agriculture together with the entire food system – from inputs and production, through processing, storage, transport and retailing, to consumption – can significantly contribute to the eradication 33 AFDB, 2013, South Sudan: An Infrastructure Action Plan - A Program for Sustained Strong Economic Growth 34 FAO, 2019, South Sudan Resilience Strategy 2019-2021 35 WFP, March 2020, “Likely Impact of Covid-19 Pandemic on Markets and Food Security in South Sudan� 36 FAO (Food and Agriculture Organization of the United Nations). Desert Locust situation update (13 July 2020) 37 http://www.ipcinfo.org/fileadmin/user_upload/ipcinfo/docs/IPC_SouthSudan_AFI_AMN_2020Jan2020July.pdf Dec 16, 2020 Page 9 of 25 The World Bank South Sudan Resilient Agricultural Livelihoods Project (P169120) of malnutrition. 18. Recognizing the significant role of agriculture in South Sudan’s overall economic growth agenda, MAFS is undertaking critical measures for the development and transformation of the sector. MAFS and associated ministries have developed a Comprehensive Agriculture Master Plan (CAMP), an Irrigation Development Master Plan, National Agriculture and Livestock Extension Policy (NALEP) and several draft policies/bills on seed systems, livestock fisheries, nutrition and land administration. Implementation of these policies and plans is lagging and there are noticeable policy gaps that hinder agricultural growth including punitive intra and inter-county checkpoint taxation laws, and duty on imported agricultural inputs and equipment. Low government funding38 for the agricultural sector does not allow for any meaningful investments in the research and extension systems needed to rebuild farming and food production in the country. Budget execution also continues to be problematic, with significant divergences between budgets and outturns. A Food and Agriculture Organization of the United National (FAO) study in 2020 revealed that despite availability of technical staff, public provision of agricultural extension services is hardly functional and faces several challenges including lack of motivation and commitment of staff, absence of agricultural extension kits and limited transport facilities. Efforts by development organizations (UN, NGOs) have minimally bridged the public extension gap. 19. While humanitarian response saves lives and livelihoods, extreme food insecurity persists, and hence a new way of thinking is critical. Humanitarian aid since 2012 has been significant—reaching over US$1 billion per year by 2019—with at least 75 percent going to food aid. Yet during the same time, the number of people at IPC-3+ increased from 9 to 60 percent. Development aid is, however, prone to political considerations as aid inflow reduced by 27 percent between 2017 and 201839. Furthermore, it appears that long-term dependency on humanitarian assistance further exacerbated the food supply and demand constraints with decreased trade volume by 2.8 percent, since most aid programs do not work through local supply chains or procure food locally. Arguably dependency syndrome could lead to local communities less willing to participate in their own development and farmers investing less in agriculture. The Government, donors and development community recognize that South Sudan must be self-reliant and that there is an urgent need to start the transition from humanitarian aid to financing agricultural recovery and resilience building integrated with peacebuilding and conflict resolution efforts. This will require investments that go beyond meeting the short-term household food security needs, and that start rebuilding the productive and institutional base of agriculture in South Sudan. The Bank is, therefore, carrying out an Advisory Services and Analytics (ASA) exercise ‘Transforming Agriculture: from Humanitarian Aid to a Development Oriented Growth Path’. The proposed project will coordinate closely with the ASA and incorporate the findings and recommendations as appropriate. C. Proposed Development Objective 20. The project development objective (PDO) is to strengthen capacity of farmers and their organizations and improve agricultural production. 21. The achievement of PDO will be measured against the following proposed key outcomes: 38 World Bank, 2020, South Sudan Economic Update Poverty and Vulnerability in a Fragile and Conflict Environment. 39 OECD Aid at a glance Charts, retrieved Sept. 11, 2020. https://www.oecd.org/countries/southsudan/aid-at-a-glance.htm Dec 16, 2020 Page 10 of 25 The World Bank South Sudan Resilient Agricultural Livelihoods Project (P169120) a) Increase in production volume of select crops (percentage) b) Increase in farming area (hectares) c) Farmers adopting improved agricultural practices (percentage out of total number of farmers reached with productive assets and services) d) Increase in the number of farmer organizations that are active. D. Project Description 22. The project comprises the following four components: Component 1: Capacity Building in Good Agricultural Practices 23. The objective of this component is to mobilize and build the capacity of targeted farmers and extension services to improve adoption of climate-smart agriculture, increase agricultural production and enhance adaptive capacity to climate risks. The key interventions are as follows: Subcomponent 1.1: Formation and Strengthening of Farmer Organizations 24. Farmer adaptive capacity is a function of the ability to access, organize, or reorganize resources, and of linkages to farmer organizations that influence the access to the necessary resources to adapt to climate change. This project will build climate resilience by increasing farmer’s adaptive capacity and access to resources through proper functioning of farmers’ organizations (FOs). FOs will act as sources of information, learning platforms, and social support that farmers can rely on when dealing with climate change and adoption of climate-smart agriculture. FOs can influence farmer adaptive capacity is through extension services, providing farmers with learning opportunities that enhance their adaptive capacity for climate- resilience. This subcomponent will support the formation of new and build the resilience of existing farmer organizations40 (FOs) through capacity building and providing resources and infrastructure required to make them fully functional. These groups will range from village (boma41)-level farmer groups to country-level (payam42) organizations or cooperatives according to the interests, objectives as well as resilience and business needs of the members. Bringing farmers together into organizations and cooperatives will enable them to harness the multi-fold benefits of group activity including increased access to inputs, knowledge and skills, modern technologies, extension services, farm labor and personally-relevant information for adapting to climate and weather variability. Interventions will be designed to enhance the capacity of FOs and Cooperatives (Coops) to address the ongoing climate urgency in the agricultural sector. Training will be provided to enable the farmers to better understand climate risks and apply coping methods both from adaptation angle and mitigation perspective43. Those farmer organizations that are well-established at the village-level, as well as those that become viable with project support, will be encouraged to federate to cooperatives which would serve to enhance their farming operations and increase their level of 40 A rigorous mobilization effort will raise awareness of the project and its goals. Mobilization will draw on existing Payam and Boma development plans and identify what services other programs are already providing in the community to avoid duplication. 41 A boma is the lowest level administrative division below payam. 42 A payam is the second-lowest administrative division under county. A payam is required to have a minimum population of 25,000 43 As a co-benefit to many of the adaptation options. Dec 16, 2020 Page 11 of 25 The World Bank South Sudan Resilient Agricultural Livelihoods Project (P169120) competitiveness. Coops in South Sudan are registered entities with an official standing and, therefore, membership in these associations will provide farmers with additional leverage and bargaining power for enhanced access to credit, inputs and extension/advisory services. The project will provide capacity building support to FOs and Coops in order to ensure their effective functioning and sustainability. Training will be provided on a range of issues, including, leadership, codes of governance, conflict resolution, capital formation through savings, financial management, basic accounting and bookkeeping, business planning and marketing. 25. The project will promote a gender-responsive approach to climate-smart agriculture by assessing the gender division of labour and gendered benefits on a farm—accessing inputs, land preparation, sowing, pest and weed management, harvesting, sorting, value addition, and transporting – in each project area. Gender- responsive Climate Smart Agriculture (CSA) technologies will include: i) those based on needs and interest of both female and male farmers; ii) those that reduce time and labor for women farmers; and iii) those that are accessible and affordable to both men and women. Women, besides their largely unpaid agriculture work, are responsible for “care work�—e.g., all household chores, caring for children, elders, and the extended family; and contributing to community activities. Special efforts will be made to promote recognition of women’s role in agriculture; ensure that women have equal access to agricultural inputs, services and benefits; and minimize risks of GBV, in particular Sexual Exploitation, Abuse and Sexual Harassment (SEAH). Training will be provided on the importance and contribution of women in agriculture, women empowerment and equal opportunities to women, girls’ education, management of GBV risks faced by the project communities. The project will encourage the inclusion and proactive participation of women and youth in farmer organizations - so that at least 30 percent of key management committee positions are held by women – as well as the formation of women and youth specific interest groups. Most women do not have access to extension services as their interactions are restricted to informal groups in the bomas due to mobility constraints and care burden compared to men who are able to interact in groups beyond their communities. Although traditional knowledge and skills, transmitted from parent to children, are often valuable, access to new skills and practices is imperative given the changing environment with new opportunities and challenges in South Sudan. Interactive approaches (demo gardens, face-to-face interactions, pictorial, video and audio materials) suited for women given their low literacy levels will be used and tailor-made to offer practical learning sessions in local languages for each specific topic. Training will be delivered in proximity to the community, at a time when women will be able to attend, in a format that does not require literacy, and with childcare facilities as needed to encourage their attendance. Similarly, special attention will be accorded to the inclusion and participation of youth in the project interventions including training and skills enhancement for providing more socioeconomic opportunities to them. 26. To promote effective functioning of FOs the project will finance infrastructure and equipment44 and ensure meaningful participation of all farmer households through its community engagement framework. All infrastructure will be climate-proofed to enhance their resilience and adaptation to climate change. Changes in weather and climate may impact infrastructure design thresholds for safe and efficient operation. Design thresholds, which traditionally have been developed according to historical environmental conditions, vary and may be set by physical limitation, regulations, contract, or social 44The project will not finance/support any Bank declared negative activities/interventions. The list of Bank declared negative activities/interventions will be added to the project implementation manual. Dec 16, 2020 Page 12 of 25 The World Bank South Sudan Resilient Agricultural Livelihoods Project (P169120) acceptance45. Assessing climate and weather-related risks is critical to the sustainability of infrastructure investments. Climate-proofing of infrastructure will, thus, be informed by climate and weather data, vulnerability assessment, and documented impacts of climate change on the infrastructure. Gaps in climate adaptation measures (past and present) will be assessed with a view to informing the design of the infrastructure and making them resilient to climate change. Climate-resilient materials will be used for the construction of houses and storage facilities, while energy efficient designs will be incorporated to minimize carbon emissions. Solar panels will also be installed for improved energy efficiency, thereby further contributing to emissions reduction. 27. Initially village-level infrastructure would be a simple Farmer organization Center (FC) as a common space for farmers (and communities) to interact, network and conduct business. In the long run, depending upon the farmers’ business needs, the FC, managed by the farmer organization, is envisaged to develop into a multi-purpose space for the benefit of farmers, including, inter alia, office space for farmer groups; a business venue for farmers, off-takers, communities; a training center (see subcomponent 1.2); storage space for agricultural commodities and goods (grain, machinery, etc.); processing and value addition center and as a rental space for social events, with the rent proceeds being used for operational costs. The FCs could also serve as a hub for youth incubation and provide entrepreneurial opportunities for youth in climate-smart agriculture. Additionally, it could act as a facility for public awareness activities related to the project as well as for the dissemination of CSA knowledge and community-related topics of interest to the farmers/communities through print media, posters, pamphlets, brochures and video recordings. The project will support the provision of equipment to enable the centers to become operational and overtime the farmer groups could invest their resources to expand it according to their business needs. The project support would include, for example, computer, desk, chair, printer, projector, weighing scale for produce etc. For security purposes, all FC premises would be surrounded by a compound wall and equipped with metal doors. The installation of solar panel roofs as the primary source of energy would be encouraged for energy efficiency and to demonstrate the benefits of renewable energy to communities, thereby providing mitigation co-benefit. Subcomponent 1.2: Improving Farming Knowledge and Skills 28. This subcomponent will focus on increasing the knowledge and skills of farmers, extension staff, and agriculture officials in well-tested and proven agricultural practices including Climate Smart Agriculture (CSA), technologies and tools to enhance farm productivity as well as strengthen farmers’ resilience and adaptive capacity to climate change and variability, and reduce emissions from agricultural production. The project will focus on advising farmers to grow high value crops such as sesame, groundnuts, legumes for cash income and staple crops for self-consumption and increased food security. Working consultatively with farmers, the project will identify knowledge gaps and areas for training related to all segments along the value chain of these crops, viz., planning, production, harvesting, storage, processing and marketing. This analysis will inform the training curricula and topic-specific training modules on Good Agricultural Practices (GAP). Climate risk-sensitive and resilience enhancing CSA planning tools and technologies, with due regard to the role of women, will be included as an integral part of the training program to strengthen farmers’ capacity to address climate-related events such as floods and droughts. These would include, inter alia, participatory climate-sensitive training and climate services for agriculture, improved and stress-tolerant crop varieties (high yielding varieties, nutrient dense crops, heat, drought and pest and disease resistant 45 https://www.weadapt.org/sites/weadapt.org/files/investment_guide_1.8_single_hi-q_17012018.pdf Dec 16, 2020 Page 13 of 25 The World Bank South Sudan Resilient Agricultural Livelihoods Project (P169120) varieties); flood water management, conservation agriculture and integrated soil fertility management (minimum tillage, crop rotations, crop residue management, soil fertility management practices); irrigation (surface irrigation, drip irrigation, sprinkler irrigation, water harvesting); and agroforestry schemes (establishment of tree nurseries, fruit tree cultivation, windbreaks, hedgerows, fodder stress, farmer- managed natural regeneration). 29. In consideration to the increasing number of households facing acute food insecurity (IPC3 and above), awareness raising about locally available nutritious foods and training on nutrition-sensitive agriculture will be mainstreamed into the curricula to increase the knowledge and skills for production and consumption of nutrient-dense foods and promote dietary diversity among rural households. Both short and medium-term strategies to address targeted household’s immediate food needs, fill the knowledge gap and strengthen skills base for production of a diversity of foods to contribute to household nutrition self-sufficiency. This would include: (i) training on the Five Color Agricultural Approach - a color-based vegetable and fruits cultivation and consumption approach - developed to prevent malnutrition and increase agricultural productivity as well as substitution of a more nutritious variety of a crop already grown for consumption (e.g., substituting yellow vitamin A maize for white maize or orange-flesh sweet potato for regular cassava). (ii) practical demonstrations on improved food practices and utilization (handling, food loss and waste prevention, food quality, safety and hygiene), (iii) introduction/promotion of appropriate technologies/implements for food storage, preparation, processing and preservation (energy saving cook stoves, solarized dryers for vegetables); and (vi) social behaviour change communication (SBCC) for vulnerable households to better manage their food resources for self-sufficiency. The location, timing and mode of training will be determined to incentivize maximum women participation. 30. Given the lack of extension staff at the payam and boma levels, the project will adopt a three-pronged approach to delivering effective advisory services to farmers: (i) hiring and training of two extension agents, one for climate-smart crop production and protection and a second for famer group mobilization and organization, totaling approximately 28-30 extension agents, (ii) supporting community-based extension systems to deliver relevant knowledge and skills to farmers for improved agricultural production and climate resilience, and (iii) building capacity of CAD extension staff. Through a Training of Trainers’ (ToT) program, the project will develop a cadre of qualified trainers and provide intensive training to identified lead farmers, extension agents, CAD extension staff, relevant NGO staff and community resource persons with the goal of enabling them deliver effective and quality extension services to farmers. In addition to the provision of classroom training, field-based learning will be emphasized to provide hands-on training and encourage uptake of the demonstrated climate-smart technologies through the “seeing is believing� approach. The training would be imparted through a variety of mechanisms, including Farmer Field Schools, workshops, field demonstrations as well as regional/international study tours to benefit from regional and global knowledge and experiences. 31. This approach is expected to achieve the dual objectives of national capacity building by strengthening state/county and community human resource capacities in delivery of extension services to farmers while facilitating the implementation of the project. Based in the target counties, these county extension staff will be accountable to and work closely with the project staff and will return to their respective county offices after the project closure. The institutional capacity building of CAD offices will also include the provision of small pieces of equipment considered essential to the functioning of an effective advisory service, including but not limited to, laptops, printers, copying machine, camera, cell phone; and financial support (during the first three years of the project) to the travel and subsistence budgets of the extension agents to enable them Dec 16, 2020 Page 14 of 25 The World Bank South Sudan Resilient Agricultural Livelihoods Project (P169120) undertake field visits as necessary in the implementation of their terms of reference. Component 2: Investment Support for Improved Agricultural Production 32. The objective of this component is to move the farmer beyond subsistence to climate-smart agricultural value chains that increase production for household level food security as well as producing surplus for market. The component will capitalize on the training received under Component 1, and contribute to generating incomes and improving livelihoods under changing climatic conditions with the concomitant benefits of a better quality of life through meeting basic household needs as well as expanding their productive activities for longer-term economic prosperity. The component will enhance farmers’ access to climate-smart agricultural inputs and other appropriate climate-smart technology, implements and tools to enhance agricultural production, value addition, and resilience. The project will work towards helping farmers engage in farming, expand their production area, adopt new technologies and implement and build an asset base for improved livelihoods. The component comprises the following key climate resilience- building interventions: Subcomponent 2.1 Improving access to food for Household facing acute food insecurity 33. Given the food security crisis affecting the country, RALP will finance rapid-disbursing support to targeted households that can stabilize target households (IPC-3+) to improve their immediate access to food. To ensure that all the targeted households in the RALP counties have immediate access to food and to avoid any duplication, the project will coordinate with the South Sudan Social Safety Nets Project (SSSNP). The households will be supported through a voucher scheme to purchase food items such as vegetables, milk, and fish from local markets during the lean period. The voucher will be restricted to the high nutritive value commodities to enable the reversal of the impacts of malnutrition in a shorter time, and empower and give opportunity to the households, especially mothers to learn basic skills in improved food practices and agriculture to make appropriate decisions for improving the food self-sufficiency of their families. Further support will be provided towards acquisition of: (i) seeds and samplings for - kitchen gardens – growing vegetables (tomatoes, onions, amaranth, okra), seasonal fruits to meet the immediate food needs of the family, and (ii) small assets including poultry and small ruminants which have short gestation periods, and bring in immediate benefits in form of eggs, milk and meat for consumption by the household. Importantly they provide surplus for sell, a source of income to the household, providing a cushion against future shocks. This has proven to improve the food security of the household in a short time and enable them to re-engage in crop production by the next planting period. Subcomponent 2.2: Increasing Availability of Quality Seeds 34. One of the most effective ways to adapt to climate change on farm is to switch crop varieties, and climate- smart seeds help both to adapt to climate change and increase climate resilience of farmers. The primary purpose of this subcomponent is to increase local production, trade and use of good quality, climate-smart seeds and planting materials by farmers. A two-pronged strategy of Community-led Quality Declared Seed (QDS) production system and Farmer-led Seed Enterprise Model (FLSE) will be deployed. QDS will promote community-based, climate-smart seed propagation and bulking, and the formation of farmer-managed seed banks and seed cooperatives to increase local trade in good quality, climate-smart seeds. FLSE will support farmer-led contract climate-smart seed production with private seed companies and the establishment of seed aggregation centers to link with seed out growers and enterprises engaged in seed development, Dec 16, 2020 Page 15 of 25 The World Bank South Sudan Resilient Agricultural Livelihoods Project (P169120) multiplication and distribution/sales. The project will also improve carbon sequestration and climate mitigation by promoting tree planting and supporting agroforestry practices on degraded landscapes. Bush fires will reduced through forestry extension, thereby reducing GHG emissions. 35. The project will work closely with MAFS and CAD for variety testing, especially climate-smart (drought tolerant, flood tolerant) and biofortified varieties to confirm the suitability of the seeds to the intended agro-ecological zone, release of improved crop varieties and on-farm trials. The project will access foundation seed of approved varieties in collaboration with MAFS and institutions such as Consultative Group on International Agriculture Research (CGIAR) centers46 (IITA, CIAT, CIMMYT), neighboring National Agricultural Research Systems (NARS), Alliance for Green Revolution for Africa (AGRA) etc. Additionally, the project will assess capacities and needs for producing different classes of seeds; support collection, profiling, conservation and multiplication of local landraces; register community seed producers and seed out growers. 36. Customized training, skills enhancement programs and infield seed extension support will be provided to improve the productivity and climate benefits to project beneficiaries. Training will be provided to community seed producers, plant breeders and seed out-growers on topics like climate change and climate- smart agriculture, GAPs, post-harvest handling and management, as well as exchange visits to develop technology generators. Furthermore, to kick-start seed production, the project will provide seed production tools, post-harvesting and processing equipment with Operation and Maintenance (O&M) backup to seed growers. Postharvest handling will entail the implementation of climate-smart pest prevention approaches to discourage the establishment and development of pest populations. Climate Smart Pest Management (CSPM) is an approach that aims to reduce pests and diseases-induced crop losses, enhance ecosystem services, reduce greenhouse gas emissions and strengthen the resilience of agricultural systems in the face of climate change.47. Post-harvest handling in priority crops will help to minimize pest-induced losses, reduce perishability and the associated methane emissions from rotten food. By reducing food losses, post- harvest handling will help to increase resilience of farmer livelihoods and overall local and national food security to climate change. 37. Furthermore, the project will provide capacity building training to the MAFS staff to fully operationalize the Ministry’s seed testing laboratory being set up with the assistance of AfDB. In coordination with AfDB the lab staff’s training needs will be identified and training events will be organized to ensure that staff is adequately trained, and the lab becomes operational as soon as it is fully equipped. Subcomponent 2.3 Enhancing Access to Technology and Mechanization 38. This subcomponent aims to raise awareness and accelerate the adoption of modern farm technologies, mechanization, the use of renewable energy for farm power thereby reducing GHG emissions. The subcomponent will provide the much-needed financial support to target FOs and farmers for investments to increase agricultural productivity, agroecosystem resilience and value addition under changing climatic conditions. The project team, in collaboration with FAO and CAD, would conduct a rapid assessment of the 46 Such as The International Institute of Tropical Agriculture (IITA, CIAT), International Maize and Wheat Improvement Centre (CIMMYT) 47 http://www.fao.org/3/BU464EN/bu464en.pdf Dec 16, 2020 Page 16 of 25 The World Bank South Sudan Resilient Agricultural Livelihoods Project (P169120) technological and mechanization needs of farmers in project areas, with special attention to women and youth, for improving production, post-harvest handling and storage, and guide and develop, in consultation with the FO, a menu of appropriate, location-specific equipment needs along with a cost recovery plan of depreciation, operational and maintenance costs and requisite training and skills to ensure that it is well managed, climate-smart and sustainable. The menu of technological and mechanization support will be guided by climate change considerations and other factors related to environmental and economic sustainability, as well as risk-sensitivity. The project, in collaboration with suppliers within the private sector, will support demonstration of selected farm technologies and tools in the project areas to create a demand for their uptake by farmers. 39. Financing support in the form of assets will be provided to FOs and Coops who meet the eligibility criteria48 (included in the project implementation manual) from a menu of suitable inputs and activities, including, inter alia, farmer organizations that have climate training readily available or promote and utilize climate- smart seeds, adoption of climate resilient and adaptive technologies such as shade nets, tunnel houses, drip irrigation kits, water storage equipment, improved seed varieties and seedlings, agro-processing, packaging and storage equipment, small farm implements, machinery and relevant equipment, where these investments lead to increased production and marketed surplus for the selected value chains. The project will encourage sourcing and procurement of inputs, equipment and technologies from local companies where after sales services and spare parts will be made available. 40. The project will also support local artisans and youth in the production and maintenance of farming tools and equipment. One of the key challenges to agricultural mechanization in South Sudan is the lack of after- sale services, spare parts and skilled technicians for implements and tools. The project will offer skills enhancement training and kits to interested artisans and youth on production, operation and maintenance, and repair of old and newly introduced equipment and tools that would require replacement of parts. This will also provide opportunities for self-employment and jobs in agricultural inputs, services, agro-logistics, as well as off-farm opportunities to project beneficiaries, with special attention being accorded to engaging, selecting and training eligible youth (both males and females). Component 3: Project Management and Technical Assistance 41. Ministry of Agriculture and Food Security (MAFS) will be the implementing agency for the project. This component will, thus, cover the costs associated with project management and implementation support, including financial management, procurement, scoping and monitoring of project environmental and social risks and impacts as well as undertaking social assessments to address provisions under environmental and social standard (ESS) seven (ESS7) and commitments in the Environmental and Social Commitment Pan (ESCP), and overall monitoring and evaluation (M&E). This component will also finance a third-party monitoring (TPM) mechanism, the establishment and maintenance of a Grievance Redress Mechanism (GRM) and conducting Gender-Based Violence/Sexual Exploitation, Abuse and Harassment (GBV/SEAH) risk assessment and consequent development and implementation of a GBV/SEAH Action Plan. It will be ensured that there is necessary staff i.e. environmental specialist, social specialist and GBV 48 Provision of the farm mechanization technologies will be determined against several criteria, e.g., beneficiaries must be in groups and guided to submit a proposal detailing the rationale and justification for the equipment and demonstrate the availability of resources for the operation and maintenance of the productive asset. Dec 16, 2020 Page 17 of 25 The World Bank South Sudan Resilient Agricultural Livelihoods Project (P169120) Specialist to ensure: (i) effective implementation of the project activities in compliance to the requirement of the Environmental and Social Framework (ESF), (ii) Environmental and Social (E&S risk) management, regular E&S implementation progress reports, and (iii) oversight from TMPA. Subcomponent 3.1: Technical Assistance and Capacity Building Support to Ministry of Agriculture and Food Security 42. The project will support Technical Assistance (TA) and capacity strengthening of MAFS, CAD and select associated departments in priority policy making including integrating climate change into national policies and planning processes and other technical areas. Integrating climate change into national policies will address the following areas: i) Data and knowledge generation and sharing for evidence-based planning and informed decisions on climate change impacts, local vulnerability, and GHG emissions from different production and agro-ecosystems; ii) developing adequate national policy frameworks for governing seed systems, and strengthening institutions and coordinating responsibilities for adoption of climate-smart agriculture; iii) qualitative changes in land and water management to address climate-change threats and enhance the resilience of ecosystems; iv) capacity building at the local level to complement the adoption and dissemination of climate-smart technologies and practice; and v) strengthening climate and disaster risk reduction through systematic efforts to analyze and manage the causal factors of disasters, including through reduced exposure to hazards, lessened vulnerability of people, better management of land and the environment and improved preparedness for adverse events. The project will commission a capacity needs assessment exercise, identify priority training areas and arrange training for the officials and technical staff. The topics would include, inter alia, policy formulation and objective setting, budget planning and execution, expenditure tracking towards the achievement of stated objectives, financial management, procurement, monitoring and evaluation and technical issues such as crop production and protection, food safety, nutrition, agricultural technology. To the extent feasible, capacity building of agriculture officials and staff would be coordinated with ELRP and the similar projects funded by other development partners, especially IFAD is interested to join hands. 43. This subcomponent will finance costs associated with the provision of TA and training for the MAFS staff with respect to World Bank ESF, fiduciary and M&E requirements. There will also be technical capacity building of extension staff at the national level and in project areas to support the government in progressively developing technical expertise and competence to coordinate, monitor, evaluate and implement agricultural programs and projects. Component 4: Contingent Emergency Response (zero allocation) 44. In the event of an eligible crisis or emergency, this contingent component will provide immediate and effective response to said Eligible Crisis or Emergency, defined as “an event that has caused, or is likely to imminently cause a major adverse economic and/or social impact associated with natural or man-made crises or disasters�49. A formal declaration of a national emergency by the government will trigger the Contingent Emergency Response Component (CERC) which will allow undisbursed and uncommitted funds from other project components to be reallocated to finance the emergency response. The World Bank’s assistance may consist of immediate support in assessing the emergency’s impact and developing a recovery 49 Eligible emergency is defined in OP 8.00, Rapid Response to Crises and Emergencies. Dec 16, 2020 Page 18 of 25 The World Bank South Sudan Resilient Agricultural Livelihoods Project (P169120) strategy or the restructuring of existing, or provision of a new, Investment Project Financing (IPF). In all cases, the World Bank would adapt its rapid response in form and scope to the emergency circumstances, in line with the World Bank Group’s Country Partnership Framework for the country. To ensure that this component operates effectively, a Contingent Emergency Response Manual will be prepared as part of the Project Implementation Manual (PIM), detailing the fiduciary, safeguards, monitoring and reporting, and any other necessary implementation arrangements in the event of a specific eligible disaster. . . Legal Operational Policies Triggered? Projects on International Waterways OP 7.50 No Projects in Disputed Areas OP 7.60 No Summary of Assessment of Environmental and Social Risks and Impacts . 45. Environmental Risk Rating is High. Component 1, 2 and 3 of the project seeks to mobilize, support and build the capacity of targeted farmers and extension services for improving agricultural production and enhancing adaptive capacity to climate risks. They focus on helping targeted farming communities return to sustainable crop production for household food security and income generation. These components present several positive impacts ranging from increased access to farm inputs, access to knowledge and skills, modern technologies, access to rural finance and credit facilities, advisory and extension services, crowding of farm labor as well as agricultural produce value addition. It will also enhance farmers access to important training on environmental and social subjects including how to better understand climate risks and coping methods both from an adaptation angle as well as from a mitigation perspective as a co-benefit to many of the adaptation options. Other areas of training will include leadership, codes of governance, conflict resolution, capital formation through savings, financial management, basic accounting and bookkeeping, business planning and marketing. It is also expected that these components will result to widespread adoption of sustainable land use and farming practices that will address climate-related events such as floods and droughts, consequently managing soil erosion and degradation. Needless to mention, this will result to increased production of both high income &high nutrition value crops, thus food security, improved nutritional health &income flow. However, some of the activities in component 2 will result to renovation, rehabilitation or establishment of household on farm agricultural infrastructure (like water harvesting, storage &irrigation systems, food storage facilities); &market infrastructure. These may be accompanied by installation of energy efficient sources of energy like solar systems for lighting use &possibly irrigation. There will also be delivery of agricultural inputs including quality seeds, efficient farms tools &equipment. These activities shall have limited civil works and will result to generation of construction solid &liquid waste, electronic waste from decomissioned batteries &solar panels, dust, noise &other rehabilitation related Occupational health and safety (OHS) hazards &impact. Other OHS impacts may result from the introduction of new mechanized farm tools that farmers have to get used to, treated seeds that may be eaten, increased use of biopesticides &fertilizers, &general waste management from seed companies &agricultural enterprises. All these impacts would be site-specific &manageable through proper enforcement of the ESMPs, Integration of sustainable sources of energy &water during subproject design, marking of treated seeds as “Not for Consumption� &continuous stakeholders training &awareness. With the additional Dec 16, 2020 Page 19 of 25 The World Bank South Sudan Resilient Agricultural Livelihoods Project (P169120) complexity of the fragile country context &the inability of the World Bank to conduct on-the-ground supervision because of security challenges, coupled with the countries weak legal &institutional arrangements to manage, supervise &enforce ESF compliance during implementation, predisposes the project to a “High� environmental risk rating, a gap the implementing partner to be contracted (FAO) & a third party monitoring agency are expected to bridge. The project has prepared &consulted upon all instruments that include the Environmental and Social Management Framework (ESMF) to further identify &assess the anticipated negative impacts and risks, as well as identified indicative mitigation measures as necessary to manage them. The ESMF has been accompanied with other additional tools like the Security Management Plan to help manage the security risk within areas where the project activities will be implemented, Cultural &Chance Find Procedures, SEP Framework, LMP, Crisis and Emergency Management Plan, ESCP documenting material measures & actions are developed and agreed. 46. Social Risk Rating is High. The CDD core local institutions will be used for local investment planning &coordination &for conflict resolution. The local level implementation approach improves community resilience &cohesion through strengthening local institutions &citizen engagement through participatory planning process. Thus, RALP will use the system developed by the Local Governance &Service Delivery Project (P127079) &its successor South Sudan Enhancing Community Resilience &Local Governance Project (P169949). The CDD-type planning approach shall reduce potential social risks during the implementation process &expected to have a positive social impact in the targeted areas. Component 2, the support to producer organizations, mobilizing farmers and/or producer cooperatives interested in participating in seed production value chains, forming & strengthening seed companies and local enterprises engaged in seed development, multiplication, and sales &promoting agro-dealerships &agriculture-focused enterprises requires the project to develop an objective targeting criteria. The improved nutrition component should observe the socio-cultural values and dietary habits of target communities. Despite the use of a composite project targeting index, for the identification of project beneficiaries, the possibility of exclusion of vulnerable households cannot be ruled out at this stage. Social risks could emanate from the country FCV context with varying intensity to the potential project area. These social risks are compounded due to (i) the multiple roles of women (reproductive, productive (farmers) and family head), (ii) exclusion of remote areas in project targeting due to inaccessibility, (iii) residual errors in composite project targeting index which may leave vulnerable groups behind, (iv) lack of functional grievances mechanism, (v) intra-communal tensions over implementation issues, (vi) project supported assets becoming targets for violent groups, (vii) exacerbating project beneficiaries to insecurity due to project support, (viii) mobility of people needing for project benefit may increase insecurity of beneficiaries, (ix) agricultural inputs may not be affordable to the cash poor and vulnerable groups, and (x) possibility of adverse effects from influx of labor for construction activities and implementing agency workers. However, given the small-scale nature of subprojects and sourcing of labor locally, the risk of labor influx is likely to be minimal. In addition, the key social risks and impacts identified include i) Conflict over selection of beneficiaries, resource allocation in financing purchases through farmer organizations, and distribution of inputs to members; ii) Resurgence of violence that places inputs, equipment and structures at risk of damage or complete destruction; iii) Security and health risks (iv) GBV; v) Conflicts over provision of employment or contracts; vi) Conflict resulting from attraction of returnee/IDP populations to communities that have improved production systems and social infrastructure; (vii) Disputes over use of land and property for project activities where ownership and access rights are contested (for both public and private property, as well as protected areas), based on historical and current large-scale displacement and seasonal migration due to conflict, ethnic / political affiliations, or cultural norms and customary land tenure laws (which discriminate against women) and competing claims to ownership or use of the same land from community of ethnic groups as most land are owned and Dec 16, 2020 Page 20 of 25 The World Bank South Sudan Resilient Agricultural Livelihoods Project (P169120) managed customarily, which may pose additional risk to VLDF approach; (viii) Inadequate implementation of E&S safeguards tools due to lack of capacity amongst the implementing partners (IPs). Violence (political, criminal, ethnic, etc.) and GBV are two forms of concern as result, escalating social risks. The GBV risk has been rated high and commensurate mitigation measures identified. Details on GBV/SEA in ESS4. E. Implementation Institutional and Implementation Arrangements 47. This is a grant to the Republic of South Sudan, and the implementing agency will be MAFS as the lead Ministry for food security and food production systems. 48. Governance and Oversight: On behalf of the Government of South Sudan, MAFS will be responsible for overall liaison and coordination. High-level oversight and guidance on project implementation will be provided by a Project Steering Committee (PSC) comprising the Minister Finance and Planning, Minister MAFS, and Governors of participating states. The PSC’s main task will be to: (i) review and advise the overall project approach and methodology, (ii) provide guidance and advice on policy issues, including resolving conflicts or problems related to national agriculture policies; (iii) foster synergies between various stakeholders to maximize project effectiveness and complementarities; and (iv) identify and resolve any jointly faced, or coordination-specific, issues and challenges. The PSC will meet at least twice a year. 49. Project Management Unit (PCU). Project Management Unit (PCU). On behalf of the Government of Republic of South Sudan, RALP will be implemented by MAFS. The ministry will maintain a project coordination unit (PCU) which will be responsible for day-to-day oversight and management of the project. The PCU will manage all core functions including program management, coordination, partner and community mobilization and facilitation, capacity building, training, environmental and social risk management, procurement, financial management (FM) and monitoring and evaluation (M&E). Environmental and social risk will be managed in line with the World Bank Environmental and Social Framework, applicable World Bank Environmental and Social Standards and the project Environmental and Social Risk Management instruments. On effectiveness, PCU will submit an annual work plan with a detailed budget to the World Bank. A detailed PIM will be prepared by MAFS for the Bank approval prior to project effectiveness. To achieve more efficient use of budget resources and promote increased collaboration, RALP and SSELRP will share the PCU. Below is an indicative organogram by the PCU showing the critical positions that need to be filled throughout project implementation. Dec 16, 2020 Page 21 of 25 The World Bank South Sudan Resilient Agricultural Livelihoods Project (P169120) Figure 1: Indicative Organogram for shared project PCU 50. MAFS will use direct contracting to bring in Food and Agriculture Organization of the United Nations (FAO) as lead technical partner for implementation and technical assistance of components 1,2, subcomponent 3.1 and ESF and other management priorities. FAO’s South Sudan Office is one of the largest FAO operations globally, and it works closely with MAFS on policy, regulatory, and investment issues across the sector. FAO has a large field presence as well as a network of vetted international and national NGOs that further expand its reach throughout the country. FAO will set up Project Implementation Units (PIUs) in the project areas. FAO engagement will also help ensure fiduciary accountability, risk mitigation, and strong monitoring. In a Dec 16, 2020 Page 22 of 25 The World Bank South Sudan Resilient Agricultural Livelihoods Project (P169120) similar arrangement, FAO performed well as an implementation partner under the Bank funded South Sudan Emergency Food and Nutrition Support Project (EFNSP, P163559) and the precursor Southern Sudan Emergency Food Crisis Response Project (EFCRP, P113586). 51. The US$ 12.5 million of CRW-ERF funds provided to RALP require that GRSS puts in place a Food Security Crisis Preparedness Plan (FSCPP) within six months of the grant becoming effective. This would be a Government led plan that details specific actions the country will take to mitigate the impacts of future food security crises. Essential elements of the preparedness plan include defining how the Government will monitor and identify emerging food security crisis risks, what actions Government will take to mitigate those risks, and what resources and additional assistance the Government can draw on to bolster its response (including from partners where possible). The Plan will require an inter-ministerial and multi-stakeholder consultation process, which MAFS is well placed to lead, most likely through the CAMP and IDMP Working Group, which comprises the leading ministries for food security and food production, other national authorities, civil society, donors, and private sector (see figure below). Figure 2: CAMP and IDMP working group structure and reporting relationships 52. The CAMP and IDMP Working Group (CIWG) builds on the system of Sector Working Groups and is part of the national budget process. It exists to provide a broad-based consultation and coordination platform for stakeholders in food security and the food production system. The CIWG reports to the Inter- Ministerial Appraisal Committee (IMAC) Quarterly Government-Donor Forum (QGDF); the national Technical Committee (TC), and the Inter-Ministerial Steering Committee (IMSC). Details on these structures is provided in Annex 2. 53. The CIWG seeks to strengthen coordinated, efficient, and effective government-led policy formulation, Dec 16, 2020 Page 23 of 25 The World Bank South Sudan Resilient Agricultural Livelihoods Project (P169120) implementation, and monitoring and evaluation to achieve the overall goal of agriculture sector development in order to achieve food security for all the people of the Republic of South Sudan, enjoying improved quality of life and environment. This makes is essential to the governance, strategy, and planning functions of the project, providing oversight of activities and overseeing development of the FSCPP. . CONTACT POINT World Bank Mohammad Imtiaz Akhtar Alvi Senior Agriculture Specialist Jeren Kabayeva Agriculture Specialist Borrower/Client/Recipient Ministry of Finance and Planning Implementing Agencies Ministry of Agriculture and Food Security John Kanisio Undersecretary wimapa89@yahoo.co.uk 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 Dec 16, 2020 Page 24 of 25 The World Bank South Sudan Resilient Agricultural Livelihoods Project (P169120) APPROVAL Mohammad Imtiaz Akhtar Alvi Task Team Leader(s): Jeren Kabayeva Approved By Practice Manager/Manager: Country Director: Ousmane Dione 07-Apr-2021 Dec 16, 2020 Page 25 of 25