JAPAN SOCIAL DEVELOPMENT FUND (JSDF) El Salvador: Agricultural and Energy Risk Management: An Integral Strategy to Cope with Drought and Food Insecurity (JSDF) Grant Funding Proposal (FY11 – Round 34) A. BASIC DATA Beneficiary Country: El Salvador Grant Name: El Salvador: Agricultural and Energy Risk Management: An Integral Strategy to Cope with Drought and Food Insecurity Grant Recipient: Central America Indigenous and Peasant Coordination Association for Community Agroforestry (ACICAFOC) (www.acicafoc.org) Name of Implementing Central America Indigenous and Peasant Coordination Association for Community Agency or Agencies with Agroforestry (ACICAFOC) Joint Implementation: Implementing Agency NGO Type: Main Sector: AZ General agriculture, Main Theme: Agriculture 91 Global Food Crisis fishing and forestry Response Recipient Grant Amount: US$ 1,833,200 Bank Incremental Costs Grant Amount: US$ 164,988 Total Grant Amount US$ 1,998,188 (Recipient and Bank Incremental Costs): B. PROJECT SUMMARY The grant will assist poor farmers living in the dry eastern region adapt their farming practices to better cope with drought, food insecurity, and high and volatile prices of agricultural and energy inputs. The farmers have been affected by the global crisis which severely contracted the economy, and which was only partly mitigated by a temporary safety net mostly for vulnerable urban poor. These farmers are increasingly more vulnerable as their traditional agricultural practices are becoming less productive as a result of climate changes and more costly as a result of the price volatilities of their essential inputs caused by the global crisis. The grant will help the farmers increase their productivity through the introduction of innovative agroforestry practices and irrigation and energy technologies which will also increase their resilience to drought, food insecurity and input price volatilities. The grant will be implemented by groups of smallholders assisted by local community-based organizations and cooperatives. An estimated 2,000 small scale farmers of both gender will be assisted and lessons learned will be used to replicate and scale-up the approach to boost yield and develop a green revolution in the eastern region of El Salvador. The grant is the only source of financing as donor and government funds are committed to provide temporary income support, school feeding and health care in the poorest municipalities that are disproportionally affected by the sharp economic contraction, rising unemployment and poverty. The Consejo National de Seguridad Alimentaria y Nutricional (National Council for Nutrition and Food Security – CONASAN) will oversee implementation of the grant and decide on scaling-up if successful. GRANT SUPPLEMENTARY INFORMATION 1. PROJECT INFORMATION 1.1 Strategic Context This operation is in response to changes in climate conditions causing severe drought and the global economic crisis causing, among other, a food crisis that requires prompt community-level action for the most vulnerable and poorest sectors of the population. Changes in weather patterns are affecting El Salvador severely. Recurrent droughts have increased people's vulnerability. Water scarcity is acute and restricts expansion of agriculture the main source of living. Agriculture is an important sector of the economy, accounting for approximately 11% of GDP in 2010. Water shortages affect forty rural departments constraining agricultural production. The departments of La Unión and Morazán in the eastern region are among the most affected. El Salvador is the most densely-populated country in Latin America. In 2000, the population density had increased to 230 people per km2. Population growth and demographic density, climate change, the global economic crisis and the resulting increases in food and energy prices, are some of the factors accounting for the food crisis in the country. According to El Salvador’s Consumer Defense Center (CDC), since 2008, the retail price of beans has risen about 60% while price increases for rice and maize are 50% and 40% respectively. These are the basic staples in the diet of Salvadoran households. Changing weather patterns have a devastating impact on the population living in the area known as the "dry corridor." Annual rainfall now averages only 1,800 mm in a region depending on pasture and crop lands. Most are small farmers cultivating an average of 0.5 hectares severely limiting the amount of crop households can harvest for consumption and sale. The more affected departments -- La Unión and Morazán – barely see any rain all year long. The persistence of drought is aggravating the food crisis that began in 2008 with the economic contraction, increases in unemployment and poverty and rise in food and fuel prices of the global crisis. To manage scarcity and market volatility, farmers attempt a variety of coping strategies, such as off-farm work, using savings, and crop diversification. However, small farmers in the dry corridor know only traditional subsistence agriculture; have little or no savings, opportunities for off-farm work or means for crop diversification. They lack the knowledge and means to implement strategies or take integrated actions to increase agricultural productivity and increase their resilience to drought (or the occasional heavy rains), high fuel, energy and transport costs. The 2009-11 Anti Crisis Plan includes programs to generate temporary jobs, expand key safety nets, increase access to education and health services and provide housing primarily to the poor in the disproportionally affected urban areas. The rural areas depending on subsistence agriculture have not been included although they are affected by the loss in remittances and employment and the increase in food and fuel prices. This project proposes new innovative approaches to assist the most vulnerable among the rural farm population, the small farmers living in the Morazan and La Union departments. This project will pilot an integrated approach linking agricultural, water and energy activities at the farm level to cope with drought and food insecurity and build the resilience capacity of farmers to respond to the impact of climate change and price volatilities. To achieve this, the project will provide technical and financial assistance to small farmers to improve agricultural productivity using agroforestry and mixed systems; at the same time they will receive assistance to improve their irrigation systems through the establishment of rainwater harvesting and micro irrigation systems. Maintenance of existing irrigation systems will be improved and if feasible, the systems will be equipped with small wind generators, micro- turbines and photovoltaic pumps to generate power for pumping water for irrigation and lower energy costs. Low-cost equipment suitable for small farmers such as photovoltaic-solar powered water pumps will be identified as part of a local energy, agriculture and water assessment. Finally, to increase the resilience capacity of farmers, and cut waste and post harvest losses, the project will provide technical assistance for improving on-farm harvesting and storage. Community leaders will identify community-based organizations and cooperatives in the selected Municipalities which will work directly with the farmers to prepare agriculture, water and energy assessments and resilience plans in a participatory manner. Based on the farmer’s situation (agriculture, water, energy), actions to cope with climate change and input prices will be identified and their needs in terms of training and equipment determined. To improve sustainability, farmers will assess risks, evaluate environmental resources, agree on socially responsible decision-making during the agricultural drought cycle and prepare integrated resilience and risk mitigation plans for their farms. The pilot project is in line with the policies of the National Council for Nutrition and Food Security (CONASAN Consejo Nacional de Seguridad Alimentaria y Nutricional) and the National Technical Committee for CONASAN (COTSAN Comité Técnico Nacional).1 These institutions were created in 2009 to implement the National Policy for Nutrition and Food Security articulate participatory solutions and responses, linking government and civil society, to the food insecurity problem. CONASAN confirms that the Department of Morazán registers some of the worst national indicators of production and nutrition and is counting on the pilot project to contribute, among other, estimates of the costs and inputs to improve food security in that department that will help to estimate of the cost of the National Policy for Nutrition and Food Security. During the exploratory mission in October 2011, the head of External Cooperation of the Ministry of Presidency, Dr. Roberto Rodriguez confirmed the interest of the Government in the pilot project as it will create an opportunity to test some of the innovative agricultural practices and technologies proposed in the National Policy and provide potential insight as to how these can be implemented on a larger scale to improve food security. The mission confirmed that key lessons learned will be properly documented and made available to the Ministry of Agriculture for potential scaling-up. The Minister of Agriculture, Dr. Guillermo Solis Suarez, confirmed this in a letter endorsing and supporting the project (attached). The mission also met with functionaries of the Japanese Embassy and the Japanese International Cooperation Agency (JICA). They agreed that the project is in line with the food security policy of the Government of El Salvador and with JICA’s activities in the country. JICA is interested in investing in the dry-corridor for example in Morazan. The scope, objectives and community-based participatory approaches of the project will make it possible develop synergies with the on-going and future JICA interventions in El Salvador. The project is aligned with the Bank’s Country Partnership Strategy (CPS) to mitigate the impact of the crisis and, among other, increase economic opportunities, particularly for the poor. It is compatible with the overall strategy of the country to raise agricultural productivity, strengthen value chains while protecting the environment, and support the safety net in rural areas by increasing rural incomes through increasing food production. The JSDF grant is the only possible source of financing for the project because both government and donor funds are committed to enhance social expenditures to cushion the impact of the economic downturn especially on the urban poor and maintain fiscal stability for sustained growth. Moreover, JSDF grants are the only source for financing actions at the community level, particularly for communities such as the rural communities in Morazan and La Union that have not been reached by the government safety net. 1.2 Main The primary beneficiaries are the poorest groups among small farmers of both genders living in the Beneficiaries rural areas of the Municipalities of the departments of Morazán and La Union. The beneficiaries will be selected on the basis of the following criteria: (i) small farmers owning 0.5 hectares of land or less; (ii) small farmers of both genders; (iii) preferable belong to a community based organization. The estimate total number of beneficiaries is about 2,000. 1.3 Project Selected communities of the Departments of Morazán and La Union. Location 1.4 Project Duration: 3 years Project Start : 06/01/12 Project End 6/30/2015 Date: 1.5 Task Team Leader Mary Lisbeth Gonzalez 1.6 GRANT DEVELOPMENT OBJECTIVE 1 The CONASAN is formed by Technical Secretariat of the Presidency (STP) Ministry of Agriculture (MAG) and Ministry of Public Health and Social Assistance (MSPAS). The project will assist about 2,000 farmers, living in the dry eastern region, increase their productivity through the introduction of innovative agroforestry practices and improved irrigation and energy technologies which will also increase their resilience to drought, food insecurity and input price volatilities. The project will be implemented by groups of smallholders assisted by local community-based organizations and cooperatives and pilot the design and implementation of Agriculture and Energy Resilience Plans that provide environmentally friendly practices and innovative technologies to transform farming. The assessments to prepare the Plans and the Plans themselves will be developed with farmer participation. The entire Project will be designed, implemented and monitored using highly participatory mechanisms seeking to involve farmers of both genders. It is expected that the implementation of bottom-up approach will contribute to identify ways to sustain the practices introduced by the project and will produce lessons for scaling-up the Plans into the broader food-security strategy of the Government. The Plans will help the farmers increase food production by: (i) producing basic grains using economically and climate- smart production systems such as agroforestry and mixed-production systems; (ii) piloting rainwater harvesting and micro-irrigation technologies, (iii) testing new agricultural harvesting systems, and (iv) designing, installing, and providing systems for small-scale energy supply technologies for power generation and heat generation for drying and storage to reduce waste. 1.7 DEVELOPMENT OUTCOME INDICATORS QUANTIFIED TARGET 1.7(a) Number of Farms using Agro forestry Systems. 40 farms using agroforestry systems 1.7(b) Establish on-farm harvesting and storage capacity. 40 on-farm harvesting and storage capacity installed and in use by the farmers 1.7(c) Establish and/or improve irrigation systems. 40 systems irrigation systems installed and in use by the farmers Establish use of alternative energy. 40 systems of alternative energy installed and in use by the farmers 2. GRANT RECIPIENT AND IMPLEMENTING AGENCY 2.1 Recipient Name: Central America Indigenous and Peasant Coordination Association for Community Agroforestry (ACICAFOC) (www.acicafoc.org) 2.2 Recipient Background: 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 social integration and inclusion and eco-development. 2.3 Implementing Agent Details Agency Name: Central America Indigenous and Peasant Coordination Association for Community Agroforestry (ACICAFOC) (www.acicafoc.org) Address ACICAFOC: Apdo. 2089-1002 San Jose, Costa Rica ACICAFOC Alberto Chinchilla, Executive Director Phone: ACICAFOC: (506)224-06274 (506)2236-6217 Email: achinchilla@acicafoc.org 2.4 Implementing Agency Background 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). It is also implementing the JSDF “Guatemala: Strengthening the Resilience Capacity of Maya Indigenous Peoples and Peasants to Cope with Food Insecurity and Climate Change” in the Guatemalan Dry-Corridor and the JSDF Honduras: “Environmentally Sustainable Cacao Production for Small-Scale Indigenous Peoples and Afro-descendant Farmers,” both recently approved. 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. See www.acicafoc.org for additional information. 2.5 Other institutions/NGOs that will be involved in implementation N/A 3. INNOVATION AND SUSTAINABILITY 3.1 Innovation The project will test an integrated approach to transform farming to boost yields while preserving the environment and introduce solutions from agroforestry to micro-irrigation, renewable energy solutions and improved storage facilities. Lack of appropriated storage is one of the main causes of grain lost for small-farmers; limiting them to stock seed and grains for future sales. This forces them to sell grains at low prices. Lack of storage contributes to their vulnerability and perpetuates their poverty. The integrated approach attempts to bring about a green revolution at the farm level. The project links sixth innovative approaches; First, the development of agro-forestry; Second the development of mixed production systems to minimize agricultural risk; Third, the development and maintenance of rainwater harvesting for home and irrigation use; Fourth, the introduction of renewable energy technologies for off-grid productive uses as a means to demonstrate how indigenous energy resources can reduce production costs of agricultural products; Fifth, training farmers to manage their own energy systems to mitigate price hikes of diesel and gasoline; and, Sixth, the development and maintenance of on-farm post harvesting and storage systems. 3.2 Sustainability The capacity of farmers to mitigate the impact of disaster, drought, and climate change will be strengthened using the following approaches: (i) introduce social decision-making for drought risk management; (ii) joint preparation of risk management action plans; (iii) identify farmer’ capacity building needs (i.e. in agriculture and risk management); (iv) design training to respond to priority needs; (v) provide sustained agricultural extension services during the life of the project; (iv) work with beneficiaries on the identification of indicators and a monitoring and evaluation system for them to be able to assess the effectiveness of their actions and investments; (vi) build management skills by strengthening the use of TICs (computer and software) for quantification of results, assessing risk, and managing losses; (vii) work with farmers on ways to create a system to maintain the new technologies and investments (energy generation, production, rain water harvesting and post harvesting); (viii) improve the sustainability of the pilot interventions by assessing the economic revenues that the farmers derive. For instance, in the case of agricultural projects with intensive energy inputs, the use of energy sources, such as solar radiation for photovoltaic water pumping, can be a cost-efficient means to reduce production costs, manage dependence on imported hydrocarbons, and increase competitiveness; (ix) organize a mid-term review meeting to evaluate the adequacy and pertinence of manuals and guidelines prepared and update them accordingly to the lessons learned during the first years of implementation. The project will generate lessons on the use of low-scale renewable energy that could be scaled-up into larger operations in El Salvador or Central America region. At the regional level, these lessons could be incorporated into the Central American Climate Change Strategy which is implemented by the Central American Integration System (SICA) through the Central American Environment and Development Commission (CCAD). Finally, results of the project will be disseminated to government authorities, JSDF, WB and other donors and communities at local and regional level for discussion of approaches for building resilience capacity of vulnerable communities and explore opportunities for replication. 4. CONSULTATION WITH JAPANESE DEVELOPMENT PARTNERS 4.1 Name of Mr. Tasuku YOSHIE, Third Secretary, Technical and Date of Meeting 10/13/2011 Representative Financial Cooperation, Embassy of Japan. 4.2 Summary of Consultation: 4.3 Potential Collaboration: JICA and the Embassy of Japan in El Salvador recognize that the food security is an important problem for the country. Mr. YOSHIE stated the importance of working with small farmers and helping them to build their resilience capacities to cope with climate change and food insecurity. Coincidentally, during the last week of October 2011, the country was devastated by tropical storms. It created national crisis. It is estimated that about 264,000 farmers have been affected. 4.4 Name of Mr. Kenji KANEKO, JICA Deputy Director, and Mr. Date of Meeting 10/13/2011 Representative Hugo SOLANO, JICA Program Official 4.5 Summary of Consultation: Both Mr. KANEKO and Mr. SOLANO stated the importance of supporting the small farmers and the need to address the problem of food insecurity. The functionaries agreed that the proposal coincides with the best interests of JICA in El Salvador and with the needs of the country. 4.6 Potential Collaboration JICA is also interested in working in the Department of Morazan. The approach, scope, objectives and the community- based approaches to increase the resilience capacity of farmers will provide room for further cooperation by JICA. 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 the implementing agency ACICAFOC. 6. DETAILED DESCRIPTION OF GRANT COMPONENTS Component 1. Participatory Assessments and Preparation of Resilience Plans for Agricultural $184,700 and Energy Risk Management 1. Information and Consultation Strategy and Preparation of Resilience Plans: Project staff will hire the services of consultants and/or a firm to prepare the information and consultation strategy to disseminate – in the selected Municipalities -- the objectives of the project and the concept of managing farm-level risk with the use of specific technologies and implementation of resilience plans. This component will comprise the following activities: (a) inform beneficiaries of the objectives and scope of the project; (b) identify main components of the resilience Plans with the participation of the beneficiaries; (c) prepare the resilience plans with the participation of the beneficiaries; and (d) design a strategy to disseminate project results among the beneficiaries.. 2. Agriculture and Water Availability Study: The Project will hire the services of a consulting firm or consultants to assess the agriculture practices of the farmers, including the use of agroforestry and mixed systems and their knowledge and practices of post harvesting storage. Specialists will prepare a study of the water availability in the selected communities. With the active participation of the beneficiaries, the consultants will assess the best technical options in terms of efficiency, lower costs and with higher environmental protection guarantees, including the assessment of the potential for small power generation for water pumping (photovoltaic, wind, micro-hydro), storage, and transportation. This study will assess the capacity building needs of the population and produce an agreed Action Plan to ensure the sustainability of the process. 3. Energy Assessment Study. The project will hire the services of a specialized group (private consulting firm, NGOs, universities and/or consultants) to carry out an overall assessment of the energy context in the Drier Eastern region. This study will use a participative approach methodology. The objective is to work directly with the beneficiaries to learn about the most suitable and cost effective technologies. This study will carry out the following tasks: (a) identify the consumption patterns and end-uses by the target communities; (b) collect technical data of previous studies carried out by different agencies to evaluate the potential of renewable energy sources in this region, undertake a critical analysis of what has worked and what has not worked, and lessons learned from these studies; (iii). assess the best technical options based on the availability of small-scale renewable energy sources for power and heat generation in small farms; and (iv) carry out a risk assessment of alternative technologies compared to conventional energy sources such as electricity from the national grid, when available, and conventional generator sets running on diesel and gasoline. Finally, the study will determine a clear Strategy and Action Plan to build the capacities of the beneficiaries and ensure the sustainability of the equipment set in place. 1. Information, Consultation and Participation Strategy. 2. Agricultural production and water availability report; risk assessment and community-based agricultural risk management plan 3. Energy Assessment Study with risk assessment Outputs: 4. Preparation of Participatory Resilience Plans. 5. 2,000 people trained in agroforestry systems and integral management. 6.2 Component 2. Community Development Investments $ 1,200,000.00 1. Sub-Projects / Grants. The project will finance sub-projects to be undertaken by small-scale rural producers of both genders. Sub-projects will be awarded to organized groups of small-scale farmers. The farms of the target beneficiaries will have plots of about 0.5 hectares that could be used for the sub-project. The beneficiaries will get assistance in preparing the group’s proposals and sub-project applications. A specialized committee of academic experts, development institutions and local community-based organizations will be formed to review and approve proposals. Projects are controlled, owned and sustained by groups of local and/or community members and representatives of local organizations. Projects will be implemented and monitored in a participatory manner involving peasants of both genders. The projects will be assessed jointly by farmer’s group which will contribute lessons that can be mainstreamed in large-scale programs. 2. Eligible expenditures of the sub-projects (on the order of US$ 950.0 per investment) are, for instance: (i) materials: plant materials, certified seeds, organic inputs, farmer appropriate books, manuals, and guides, water irrigation systems; (ii) tools: grafting knives, gloves, pruning tools, hoes, machetes, etc; (iii) equipment: backpack sprayer, small-scale processing equipment, etc; (iv) services: land preparation, technical assistance, (v) materials to build the rainwater harvesting systems, (vi) off-grid power technologies, mainly photovoltaic powered pumps given the high level of sun shine in the Eastern Drier Corridor, (vii) drip-irrigation systems for small farms and (viii) low cost installations for heat generation such as solar driers and biodigestors linked to cleaner production activities at the farm level. Acquisition of all goods will follow World Bank procedures. A beneficiary committee will be in charge of maintenance of the equipment. The community will be accountable for all sub-projects and community members will be trained in maintenance and technical skills needed. Members of the various committees will be selected by the farmers. Gender equality will be encouraged and community organizations will have to include at least 25% of women members. 1. Reports on approved sub-projects, including amount, number of beneficiaries. 2. Installation of water pumping, micro-irrigation systems and Rainwater harvesting systems. 3. Installation of solar driers and biodigestors. Outputs: 6.3 Component 3.Building the Resilience Capacity of Small Farmers. $ 174,000 The objective of this component is to build the capacity of small farmers to mitigate risks. Farmers will be provided with training, technical assistance and advisory services to select the best options for specific risk mitigation. For instance, technical assistance to determine the most suitable and sustainable irrigation technologies to increase agricultural production during dry periods. 1. Strengthening the Capacity of Small Farmers in Agroforestry Systems (SAF). Farmers will get technical assistance and training about the advantages of the agroforestry systems to increase productivity and economic benefits while conserving ecosystems. Workshops will be organized, demonstratives nurseries and farm schools will be established and the implementing agency will undertake regular monitoring visits to the farms, if possible with the Bank team. The training will include World Bank Safeguards (Environmental Assessment, Pest Management for safe practices with, for instance, pesticides). The training will also include awareness campaign regarding protective equipment and handling and storage of hazardous materials. Academic and research institutions (Instituto Superior de Economía y Administración de Empresas (ISEADE), Fundación Empresarial para el Desarrollo Educativo (FEPADE), Centro Agronómico Tropical de Investigación y Enseñanza (CATIE), Instituto Interamericano de Cooperación para la Agricultura (IICA), and Sistema de la Integración Centroamericana (SICA), universities) will assist with selection of plant stock and seeds suitable to the soil conditions of the region. As part of the training on agroforestry, the farmers will also be trained in the design and maintenance of rainwater harvesting and “on-farm” harvesting and storage. 2. Strengthening the Capacity of Rainwater Harvesting. The objective is to build the capacity of the farmers for rainwater harvesting, including the collecting and storage of rainwater from rooftops, large containers, sloping land surface or rock catchments using simple locally available tools and techniques. Beneficiaries will be trained on how to build and maintain collection devices and conveyance systems. Farmers will also be trained in how to improve their existing irrigation systems (e.g. reduce water loses due to seepage in irrigation canals, improve maintenance practices, etc). 3. On-Farm” Harvesting or Storage. The objective is to build the capacity of farmers in building small and medium size metal silos capable of harvesting between 50 to 200 kilograms of grains. The training will be community-based to ensure that all community members will acquire the knowledge and skills to build the silos and trainers will conduct sessions throughout the region to improve storage and reduce losses which are substantial in the region. 4. Strengthening the Capacity on Energy Systems. The project will hire the services of professionals to strengthen the capacity of the community-based organizations that will be responsible for the management of the energy systems. This will include: (i) Technical support to supply and install off-the-shelf technologies, such as solar devices for water pumping, post-installation servicing including preventive maintenance, and field training of local technicians and workers in installation and maintenance; (ii) technical support –to train beneficiaries in the use and maintenance of rainwater harvesting installations, and (iii) capacity building for maintenance of small- scale renewable energy power devices for off-grid productive uses as well as micro-irrigation systems, through technical workshops at the community level and elaboration of teaching materials, including hands-on manuals, toolkits, posters and brochures. 1. Water Availability Study. 2. Agricultural use assessment. 3. Energy Assessment Outputs: 4. Rainwater harvesting and irrigation system guidelines and/or manuals. 5. Agricultural, irrigation and energy manuals, teaching materials, including hands-on manuals, toolkits, posters and brochures. 6.4 Component 4. Supervision, Participatory Evaluation and Project Administration. $274,500.00 Administration of the Project. A Project Coordinating Unit will be established by ACICAFOC. The Coordinating Unit will administer the day-to-day affairs of the project and ACICAFOC will assign experienced staff to manage and oversee the implementation of the project. 1. Participatory Monitoring and Evaluation System (M&E). Baseline information comprising key information of each beneficiary, their production capacity, and farm productivity will be collected to allow monitoring of progress during implementation and for evaluation purposes. Consultants will undertake base-line surveys, develop outcome indicators and the M&E matrix, in a participatory manner with the beneficiaries to ensure that the beneficiaries have the capacity to collect input data and will be able to use the information generated by the M&E system to improve their productivity. A specialized firm will develop an online version of the monitoring and evaluation system for stakeholders, partners, local government, implementing agencies, the Government of El Salvador and the World Bank. The system will also systematically collect and store the results of workshops and community meetings for dissemination to beneficiaries. 1. Project Implementation reports. 2. Workshop and/or meetings. Outputs: 4. Financial and fiduciary reports. 5. Monitoring and Evaluation installed and preparation of tri-monthly reports. 6. Audit reports. 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 366,000 100 20 Disb-Training 173,700 100 9 Disb-Goods 9,500 100 1 Disb-Civil Works 0 0 Disb-Other 1,200,000 100 65 Disb-Operating Cost 84,000 100 5 Total Grant to Recipient 1,833,200.00 100 100 Bank Incremental Costs 164,988.00 Total Grant Amount: 1,998,188.00 OPERATIONAL RISKS ASSESSMENT FRAMEWORK Risk Category Risk Risk Description Proposed Mitigation Rating Project Beneficiaries Modest Low implementation capacity and Training packages in technical options and Stakeholders risk 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 Project Promoters will work in building the capacity of beneficiaries in WB safeguards and ways to implement them in the Project. Implementing Agency Modest ACICAFOC has been working with The WB will ensure, however, that the Risks risk the Bank and so far its record is implementing agency is trained in WB excellent. fiduciary and acquisitions rules and . procedures as well as in social and environmental safeguards. However, the Bank will continue supervising and providing training during the life of the Project. Project Risks: Design Negligible Both organizations have provided Training packages in technical options to or low their inputs and comments and have ensure successful implementation. The risk agreed with the development training aims at providing tools to place objective and activities. in practice environmentally sound agriculture and energy management following a holistic and integral approach is applied – cultivation – irrigation – harvesting, energy generation. 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 implementing immediately in the preparation of the collective sub-projects. POA –PAC. To mitigate the potential social risk the Natural disasters, including storms information, consultation and and erratic and irregular rains could participation strategy will be designed jeopardize the success of the Project. and implemented to ensure that people, mainly women and youth, are properly informed and consulted and that their participation is properly fostered using 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 is familiar and The Bank will keep a sustained Quality risk well versed with WB reporting, supervision strategy. Regardless of the management, fiduciary, social and experience the Bank will keep special environment. . attention in monitoring and evaluation reports, acquisitions and financial reporting. JSDF -- DETAILED COST TABLE COUNTRY: El Salvador GRANT NAME: AGRICULTURAL AND ENERGY RISK MANAGEMENT: AN INTEGRAL STRATEGY TO COPE WITH DROUGHT AND FOOD INSECURITY DATE: JANUARY 2012 Expenditure Procurement Unit Unit Cost Total Cost /a Components & Activities 1/ Quantity Category Method Label (US$) (US$) COMPONENT 1. PARTICIPATORY ASSESSMENTS AND PREPARATION OF RESILIENCE PLANS FOR AGRICULTURAL AND ENERGY RISK MANAGEMENT ACTIVITY A: INFORMATION-CONSULTATION STRATEGY AND PREPARATION OF RESILIENCE PLANS CONSULTANTS CONS $ 122,000.00 CONS. man/mo 4 Promoters (nat'l) IC 84 1,000.00 $ 84,000.00 FEES nth CONS. man/mo Communications Specialist (nat'l) IC 20 1,900.00 $ 38,000.00 FEES nth PREPARATION OF PARTICIPATORY TRG $ 33,300.00 RESILIENCE PLANS Training Package * per transportation 9 worksho 1,000.00 $ 9000.00 p per stipend 9 worksho 500.00 $ 4,500.00 p per acommodation 9 worksho 500.00 $ 4,500.00 p per rent 9 worksho 700.00 $ 6,300.00 p per training materials 9 worksho 1,000.00 $ 9,000.00 p Subtotal Activity 1.A: $ 155,300.00 ACTIVITY B: AGRICULTURE , HARVESTING AND WATER AVAILABILITY STUDIES CONSULTANTS CONS $ 12,600.00 Agriculture (Harvesting) and Water man/mo CONS QCBS 3 4,200.00 $ 12,600.00 Assessment (nat'l institution) nth Subtotal Activity 1.B: $ 12,600.00 ACTIVITY C: ENERGY ASSESSMENT STUDY CONSULTANTS CONS $ 16,800.00 Energy Assessment Study (int'l/ CONS- man/mo QCBS 4 4,200.00 $ 16,800.00 nat'linstitution) FIRM nth Subtotal Activity 1.C: $ 16,800.00 TOTAL COMPONENT 1 $ 184,700.00 COMPONENT 2. COMMUNITY DEVELOPMENT INVESTMENTS SUBPROJECTS SUB-P subgrants 2000 Benef. 600.00 $ 1,200,000.00 TOTAL COMPONENT 2 $ 1,200,000.00 COMPONENT 3. BUILIDING THE RESILIENCE CAPACITY OF SMALL FARMERS ACTIVITY A. STRENGTHENING THE CAPACITY OF SMALL FARMERS ON AGROFORESTRY SYSTEMS (SAF) a) Use of Agroforestry Systems CONSULTANTS CONS $ 16,800.00 Technical Assistance (int'l/nat'l man/mon CONS QCBS 4 4,200.00 $ 16,800.00 institution) th TRAINING ON AGROFORESTRY TRG $ 35,100.00 Training package * per transportation 9 1,000.00 $ 9,000.00 workshop per stipend 9 500.00 $ 4,500.00 workshop per acommodation 9 500.00 $ 4,500.00 workshop per rent 9 900.00 $ 8,100.00 workshop per training materials 9 1,000.00 $ 9,000.00 workshop TRAINING ON ON-FARM HARVESTING TRG $ 35,100.00 AND STORAGING SYSTEMS Training package * per transportation 9 1,000.00 $ 9,000.00 workshop per stipend 9 500.00 $ 4,500.00 workshop per accommodation 9 500.00 $ 4,500.00 workshop per rent 9 900.00 $ 8,100.00 workshop per training materials 9 1,000.00 $ 9,000.00 workshop Subtotal Activity 3.A $ 87,000.00 ACTIVITY B. STRENGTHENING THE CAPACITY ON RAINWATER HARVESTING AND IRRIGATION SYSTEMS CONSULTANTS CONS $ 16,800.00 Rainwater and Irrigation Technical man/mon QCBS 4 4,200.00 $ 16,800.00 Assistance(nat'l and Int't) th TRAINING ON RAINWATER AND TRG $ 35,100.00 IRRIGATIONS SYSTEMS Training package * per transportation 9 1,000.00 $ 9,000.00 workshop per stipend 9 500.00 $ 4,500.00 workshop per accommodation 9 500.00 $ 4,500.00 workshop per rent 9 900.00 $ 8,100.00 workshop per training materials 9 1,000.00 $ 9,000.00 workshop Subtotal Activity 3.B $ 51,900.00 ACTIVITY C. STRENGTHENING THE CAPACITY ON ALTERNATIVE ENERGY TECHNOLOGIES TRAINING ON ALTERNATIVE ENERGY TRG $ 35,100.00 TECHNOLOGIES Training Package * per transportation 9 1,000.00 $ 9,000.00 workshop per stipend 9 500.00 $ 4,500.00 workshop per acommodation 9 500.00 $ 4,500.00 workshop per rent 9 900.00 $ 8,100.00 workshop per training materials 9 1,000.00 $ 9,000.00 workshop Subtotal Activity 3.C $ 35,100.00 TOTAL COMPONENT 3 $ 174,000.00 COMPONENT 4. SUPERVISION, PARTICIPATORY EVALUATION AND PROJECT ADMINISTRATION ACTIVITY A: PROJECT MANAGEMENT CONSULTANTS $ 157,000.00 man/mon Project coordinator (nat'l) ** CONS. FEES IC 30 2,400.00 $ 72,000.00 th man/mon Environment and Social Specialist (nat'l) CONS. FEES IC 20 1,400.00 $ 28,000.00 th man/mon Supervision and administration costs CONS. FEES IC 21 1,000.00 $ 21,000.00 th man/mon Accounting service CONS. FEES IC 18 1,000.00 $ 18,000.00 th man/mon Procurement service CONS. FEES IC 18 1,000.00 $ 18,000.00 th OPERATING COSTS $ 84,000.00 Rent OPC 3 per year 6,000.00 $ 18,000.00 Office supplies OPC 3 per year 4,000.00 $ 12,000.00 Utilities OPC 3 per year 2,500.00 $ 7,500.00 Travel, per diem , insurance, car rental OPC 3 per year 8,400.00 $ 25,200.00 telephone, fax, internet and courrier 3 per year 7,100.00 $ 21,300.00 GOODS $ 9,500.00 PCs Goods shopping 5 700.00 $ 3,500.00 A/C Equipment GOODS shopping 2 3,000.00 $ 6,000.00 Subtotal Activity 4.A $ 250,500.00 ACTIVITY B: AUDITS CONSULTANTS CONS $ 14,000.00 man/mon Auditing firm (2 audits) CONS- FIRM LCS 4 3,500.00 $ 14,000.00 th Subtotal Activity 4.B $ 14,000.00 ACTIVITY C: PARTICIPATORY MONITORING AND EVALUATION SYSTEM (M&E) CONSULTANTS CONS $ 10,000.00 Base line and final evaluation, M&E man/mon CONS IC 4 2,500.00 $ 10,000.00 Specialist (nat'l) th $ - Subtotal Activity 4.C $ 10,000.00 TOTAL COMPONENT 4 $ 274,500.00 TOTAL PROJECT COST (RECIPIENT $ 1,833,200.00 GRANT) TOTAL BANK SUPERVISION GRANT $ 164,988.00 PROPOSED TOTAL JAPAN GRANT $1,998,188.00