Document o f The World Bank FOR OFFICIAL USE ONLY Report No: 51158-MW PROJECT PAPER ON A PROPOSED ADDITIONAL FINANCING GRANT N I THE AMOUNT OF SDR 6.4 MILLION (US$ 10 MILLION EQUIVALENT) TO REPUBLIC OF M A L A W I FOR THE COMMUNITY- BASED RURAL LAND DEVELOPMENT PROJECT October 27,2009 Sustainable Development Department Agriculture and Rural Development Unit Country Department AFCS2 Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective: October 14,2009) Currency Unit = Malawi Kwacha W [US$l.OO = M K 1401 [US$1.5625 = SDR 11 FISCAL YEAR July 1 - June 30 ABBREVIATIONS AND ACRONYMS BESTAP Business Environment Strengthening Technical Assistance Project BG Beneficiary Group CAS Country Assistance Strategy CBRLDP Community-Based Rural Land Development Project EMP Environmental Monitoring Plan FMR Financial Monitoring Report GDP Gross Domestic Product GOM Government o f the Republic o f Malawi IDA International Development Association lHS Integrated Household Survey ISR Implementation Status Report IDA International Development Association IPM Integrated Pest Management ISR Implementation Status and Results Report KPI Key Performance Indicator LAFD Land Acquisition and Farm Development MASAF-MU Malawi Social Action Fund Management Unit MDG Millennium Development Goal MIS Management Information System MGDS Malawi Growth and Development Strategy M&E Monitoring and Evaluation MLHUD Ministry o f Lands, Housing and Urban Development MTR Mid-Term Review PMU Project Management Unit NGO Non-Governmental Organization NSO National Statistical Office PDO Project Development Objective SDR Special Drawing Rights Vice President: Obiageli Katryn Ezekwesili Country Directormanager: Peter Nicholas/Timothy Gilbo Sector DirectorManager: Inger Andersen K a r e n Brooks Task Team Leader: Hardwick Tchale 11 FOR OFFICIAL USE ONLY REPUBLIC OF MALAWI COMMUNITY- BASED RURAL LAND DEVELOPMENT PROJECT ADDITIONAL FINANCING CONTENTS I. Introduction ................................................................................................................ 1 I1 . Background and Rationale for Additional Financing ................................................ 2 IV. Consistency with the country Assistance Strategy .................................................. 13 V. Appraisal o f Scaled-up Project ................................................................................ 13 V I. Expected Outcomes ................................................................................................. 17 VI1. Benefits and R i s k s.................................................................................................... 17 VI11. Financial Terms And Conditions For The Additional Financing ............................ 19 ANNEX A: Preparation and Timetable o f Key Processing Steps ..................................... 20 ANNEX B: Monitoring and Evaluation Improvement Action Plan .................................. 21 ANNEX C: Results Framework ......................................................................................... 22 ANNEX D Arrangements for Results Monitoring........................................................... 24 ANNEX E: Procurement Improvement Action Plan ........................................................ 26 ANNEX F Statement o f Loans and Credits..................................................................... 27 ANNEX F Countq'at a glance ........................................................................................ 28 ANNEX H: M A P - IBRD 33440 ...................................................................................... 30 This document has a restricted distribution and may be used by recipients only in the performance o f their official duties . I t s contents may n o t be otherwise disclosed without W o r l d Bank authorization . ... 111 REPUBLIC OF MALAWI COMMUNITY- BASED RURAL LAND DEVELOPMENT PROJECT ADDITIONAL FINANCING PAPER PROJECT DATASHEET Date: October 27,2009 Team Leader: Hardwick Tchale Country: Republic o f Malawi Sector DirectorManager:Inger Project Name: Community -Based Rural Andersen / Karen Brooks Land Development Project Country DirectorManager: Peter Project ID: P115226 Nicholas /Timothy Gilbo Lending Instrument: Specific Investment Environmental Category: B (Partial Loan Environmental Assessment) Recipient: Republic o f Malawi ResponsibleAgency: Ministry of Lands, Housing and Urban Development(M0LHUD) FY 2010 2011 2012 Annual 4.0 5.0 1.o Cumulative 4.0 9.0 10.0 Current closing date: December 3 1, 2009 has been modified, some outcome indicators have been refined and new intermediate results have been introduced in l i n e with the modified activities. The revised project development objective is to increase the agricultural productivity and incomes o f approximately 15,000 poor rural families through the implementation o f a decentralized, voluntary community-based land reform pilot program on Eligible Land in the Project Districts. Does the scaled-up or restructured project trigger any new safeguard policies? No. Fo r Additional Financing [ ] Loan [ ] Credit [ XI Grant For Loans/Credits/Grants: Total Bank financing: US$10 million Proposed terms: IDA Grant iv I. INTRODUCTION 1. This Project Paper seeks the approval of the Executive Directors to the proposed: (i) additional financing o f the Community- Based Rural Land Development Project (51 158- MW) in the amount o f SDR 6.4 million (Ten million United States Dollars [US$ i) 10,000,000] equivalent IDA Grant); ( imodification o f the Project objective and the Land i i an Administration component (Part B) o f the original Grant and ( i ) extension o f the project closing date from December 31, 2009 to September 30, 2011. The project development objective has been modified, a few outcome indicators have been introduced and the results framework has been streamlined to incorporate.the modified activities. 2. The proposed additional financing would primarily be used to cover an over-run related to the costs o f relocating 1,000 households to reach the project target o f 15,000 households, enhancement o f the Capacity Building component to strengthen the capacity o f the land administration institutions, and further support to reform o f the legal framework for land administration. Funding for capacity building would be used primarily for land registries at district level and surveying and registration services. Capacities in land surveying, land administration and land information technology at national and district levels are crucial for effective delivery o f services under land reform programs. They enhance governance and ease o f access to land by investors, while reducing the amount o f time it takes to register a land transfer. 3. Part o f the additional financing will be utilized to help resolve policy issues that hinder the development o f land markets. These issues include (i) collection o f land rent, (ii) i ienactment o f a new Land Law. introduction o f a land tax on freehold land, and ( i ) This will also enable the World Bank to continue to support the framework for land reform during the extension period. The Original Grant 4. A SDR 18.1 million (US$27.0 million equivalent) IDA Grant in support o f the Malawi Community-Based Rural Land Development Project was approved by the Board o f Executive Directors on April 13,2004 and became effective o n July 12, 2004. As stated in the original project's Development Grant Agreement (DGA), the project development objective i s to "increase the incomes o about 15,000 poor rural families through the f f implementation o a decentralized, voluntary community-based land reform pilot program on eligible land in the Project districts. " The original project was initially implemented in 4 pilot districts @.e. Mulanje, Thyolo, Machinga and Mangochi), but in October 2008, Government requested for an amendment to the DGA to include 2 other districts (i.e. Balaka and Ntcheu) into the pilot project. The project's current closing date i s December 31, 2009 following the approval o f a six month extension to the original closing date o f June 30, 2009. The Government is exploring h o w to scale up the experience under the project in a broader land reform programme. The Bank has disbursed SDR 17.7million (98%) and the total undisbursed amount is SDR 0.4 million. The amount in the two Special ' The PDO in the original PAD i s slightly different from the DCA in terms of formulation, but not in substance. 1 Accounts A and B is respectively SDR0.9 million and SDR1.7 million for a total o f SDR2.6 million as o f June 30, 200g2. Special Account B is to be used solely for Land Acquisition and Farm Development under Cost Category 1. I t is expected that the unutilized balance will be fully utilized by December 3lS', 2009 as there are over 1,300 households ready for reallocation under the project. The unutilized balance in Special Account A will also be fully utilized by December 31, 2009. The project has already submitted withdrawal applications through the April to June, 2009 Financial Monitoring Reports (FMRs) and the FMRs (and Withdrawal Applications) for the quarters ending September 30 and December 31 are expected by November 15, 2009 and February 15, 20 10 respectively. 5. The project components under the original Grant consist of: (i) Land Acquisition and Farm Development- implemented with direct community involvement through identification, negotiation and acquisition o f land and the preparation o f farm development proposals, approved by a district-level multi-stakeholder entity, taking into account legal, technical, environmental, and poverty reduction criteria. These sub-projects are carried out through the award o f land acquisition and farm development grants to project beneficiaries who are the poor, landless and food insecure households from the pilot districts; (ii) Land Administration- to facilitate the transfer o f secure title to the beneficiaries by supporting the i iCapacity Building- strengthening o f land administration institutions in the project area; ( i ) supporting public information campaigns, community mobilization, participatory rural appraisal, training and technical support to communities, district and national participating institutions and stakeholders; and (iv) Project Management, Monitoring and Evaluation- supporting overall project administration, coordination, supervision, monitoring and evaluation. 1. 1 BACKGROUND .AND RATIONALE FOR ADDITIONAL FINANCING 6. Country context: Malawi i s one o f the poorest countries in the world, with an average income per capita o f around US$171. The population i s currently estimated at 13.6 million people and has been growing at a rate o f 2 percent per annum. Malawi has a relatively high inequality in income distribution, with a Gini coefficient o f 0.38. The poverty headcount was measured at 54 percent in 2004/05 household survey, and i s said to have been declining to about 40% in 2008 according to the Welfare Monitoring Surveys conducted by the National Statistical Office (NSO). However, social and human development indicators remain very weak. For example, the 2007/2008 Human Development Index ranks Malawi as 164th out o f 177 countries. 7. Malawi's economy is based o n agriculture which generates around 36% o f the Gross Domestic Product (GDP), provides 85% of employment and earns 90% o f foreign exchange earnings. Land distribution is sharply unequal, and overcrowded arable land exists next to underutilized holdings. Over 90% o f the total agricultural value-added comes from about 1.8 million smallholders who o n average own less than 1.0 ha o f land. The * The last FMR reviewed and cleared was for the period t o June 2009. The accounts were therefore reconciled t o 30" June 2009. The project has n o t yet submitted the next FMR which i s due o n 15" November 2009. 2 poverty and vulnerability assessment indicates that average cultivable land holding i s less than 1 hectare (0.90 ha) and just about 0.2 h a per capita for the poorest while the richest have o n average 1.3 hectares (0.4 ha per capita) as shown in Figure 1. As shown in Table 1, in terms o f land distribution, about 58 percent o f the farmers cultivate less than 1 ha, o f which about 11 percent are near landless. Only 13 percent cultivate more than 2 ha and the majority o f these are in the north where population density i s s t i l l relatively l o w (about 50 people per h2). 1.1 million hectares o f land are held in some 30,000 estates, with About an average land holding ranging from 10 to 500 hectares. Therefore, one o f the key constraints to improved smallholder productivity i s the small and declining land holding sizes. The CBRLDP aims at contributing towards addressing this challenge. Figure 1: Average size o f households' landholdings by wealth and land quintiles Household landholdings Landholdings per capita 1.4 0.6 1.3 0.5 1.2 .- 5 Q 1 Cuitivated 0 1 8 1.1 2 0.4 5 k 5 L 1.0 0.3 P 0.9 2 5 0.2 0.8 0) I 0.1 0.7 0.6 0 Poorest 2 3 4 Rchest morest 2 3 4 Rchest Source: National Statistical Office, IHS2, 2004/05 Table 1: Distribution o f landholdings by region, poverty status, and wealth quintiles Oha 11.4 11.4 9.7 9.7 13.2 5.0 16.4 4.0 5.3 6.5 9.5 24.1 20 - 0.2 ha 2.5 13.9 1.2 1.6 3.6 2.5 2.6 2.7 2.3 2.4 2.6 2.7 0.2 - 0.5 ha 17.4 31.3 10.9 13.8 21.8 18.9 16.2 21.0 18.1 17.8 17.0 15.0 > 0.5 - 1.O ha 26.3 57.6 19.3 25.2 28.7 30.1 23.4 33.4 29.8 26.0 26.2 20.7 - > 1.0 2.0 ha 29.0 86.6 30.1 33.5 24.9 31.6 26.9 28.9 31.6 33.8 30.2 23.1 > 2.0 ha 13.4 100 28.8 16.2 7.7 12.0 14.5 10.0 12.9 13.5 14.5 14.5 Source: National Statistical Office, M S 2 2004/05 8. Land pressure exists in the face o f underutilized land in both the estate and customary sector. Based on estimates from land utilization studies undertaken in 1996, about 2.6 million hectares o f suitable agricultural land under estate and customary tenure, or 28% o f the country's total area, were said to be uncultivated or underutilized. However, Government's current estimates indicate that approximately 600,000 hectares are either underutilized or remain idle. It i s this land that has been the target for redistribution under the project. 3 9. The major policy issues for the land sector in Malawi relate to equity o f access, security o f tenure and sustainability o f land use. The Government has been piloting the Community-based Rural Land Development Project (CBRLDP) since 2004 to introduce policies and strategies that will improve efficiency o f land use by bringing idle land into production through voluntary mechanisms. The CBRLDP i s `piloting a `transparent, voluntary, legal and resource-supported approach' to land redistribution through efforts that are market-assisted, community-driven, and focused on rural areas, where poverty is most pervasive. Government response to the land issues 10. The Government instituted the Presidential Commission on Land Reform in 1996. The Commission was entrusted with the task o f reviewing the previous Land Policy as well as the Land Act o f 1965, which was essentially inherited from the colonial Government. The Commission's work culminated into the new Land Policy adopted in 2002. In 2003 Government instituted a Special L a w Commission to draft a new Land L a w with which to implement the Land Policy. Malawi's new draft Land Bill awaits legislative approval. When the draft Bill was first presented, it was recommended that the Special L a w Commission should review other related legislative instruments in order to come up with a comprehensive Land Law. So far the review process is complete, but due to the lapse o f time, more consultation and sensitization will be required before it i s presented to Parliament for legislative approval. Performance of the Original Project 11. The last Project Implementation Support Mission (March 2009) rated project performance as Satisfactory with regard to meeting the expected project development objectives and related outcomes, while IP ratings were Marginally Satisfactory, due mainly to slow progress on issuance o f titles to beneficiary groups and the failure to complete the required annual as well as overall impact assessment o f the project. The government has submitted an action plan to the Bank outlining remedial measures to be taken by 2010. Issuance o f land titles has improved since then, and 89% o f the 551 relocated beneficiary groups had received their titles by June 30, 2009, compared to 41% at the end o f March 2009. To improve the IP rating with regard to land administration, the project has been closely monitoring and facilitating the Surveyor General's Department in MOLHUD to ensure speedy processing. This explains why registration o f titles has improved significantly. In terms o f the M&E, the PMU has engaged the services o f another consultant and is monitoring the performance o n a weekly basis and helping to address challenges when they occur. Furthermore, the project has also prepared an interim project evaluation report. 12. The PDO rating had been moderately satisfactory since June 2008 mainly due to problems in M&E, project management, financial management and land administration. After the March 2009 mission, the rating was upgraded to "satisfactory" due to the improved progress o n relocation o f beneficiaries and the positive impact o f the project o n beneficiaries' livelihoods in terms o f productivity and incomes. The IP rating was 4 maintained at "moderately satisfactory" after the March 2009 mission because o f the slow progress in issuing group land titles to relocated beneficiary groups and delays in the completion o f the impact evaluation. However, following the implementation o f the action plan agreed upon during the mission, both the issuance o f group titles and performance on impact evaluation have improved significantly. About 90 percent o f group titles have been issued (an increase from 41 percent achieved in March 2009) and the interim impact assessment report has been prepared and another independent consultant has been engaged to produce the final impact evaluation. As such, the original development objectives are o n track to be met by the revised closing date. 13. The project has so far relocated 84% o f the target beneficiaries. Disbursement i s at 98% o f the total project budget3. Issues related to impact evaluation are being resolved and all fiduciary issues are satisfactory. The project i s on track to meeting its development objectives. K e y aspects o f the technical and fiduciary performance o f the national program are summarized below. 14. Key Achievements: K e y achievements o f the Community Based Rural Land Development Project to date are summarized below (by project component). (a', Component 1 - Land Acquisition and Farm Development (LAFD): So far the project has resettled 12,656 households on 27,998 hectares. In addition, a total o f 1,344 households (61 BGs) have already been processed for relocation on 3,255 hectares. The f h d s for these are available and are being processed through MASAF. Once these relocations are completed, the project will have achieved 93% and 95% o f the total target beneficiaries and land acquired, respectively. Each beneficiary household has been allocated 2.2 hectares o n average, compared to their original holdings 0.45 ha. Yields o f maize, the main staple food improved from an estimate o f about 962kgha at baseline to 2,269 kg/ha, through a combination o f improved access to land and input support provided through the project's farm development grant. Tobacco yield has also improved from about 519 kg/ha at baseline to 1,390 kg/ha4. A s a result o f larger holdings and improved productivity, food insecurity among project beneficiaries has been reduced and annual household incomes have improved from an average o f MK11,830 to MK32,858 per household. The project has been hailed as a model showing an approach to land reform from which other countries in the Southern African region could draw lessons. (b', Component 2 - Land Administration: The project had, by June 30, 2009, transferred group land titles to 493 beneficiary groups (of the 551 groups relocated so far), representing about 89% o f beneficiaries. Progress in this component has been affected by capacity problems with regard to land administration in general, and surveying o f land in particular. The proposed additional financing will About 14% o f the total Grant funds disbursed i s outstanding advances to the Special Accounts. For purposes o f measuring impact o n productivity, the project focuses o n two main crops grown under the smallholder sector in Malawi i.e. maize and tobacco. However, farmers grow many other crops such as pulses, roots and tubers etc. T h e project received a waiver related to OP4.76 on tobacco. 5 strengthen capacity in land administration to speed up land surveying, registration and titling. Jc) Component 3 - Capacity Building: The project has mounted comprehensive and effective public awareness and training programs in all the project districts. As a result, the project has been well received and potential social conflicts have been largely avoided. Jd) Component 4 - Project Management. Monitoring and Evaluation: The project has put in place a monitoring and evaluation framework including a management information system (MIS), and has carried out studies including an independent impact evaluation which was contracted to a private consultancy firm. The impact evaluation i s not yet complete because the original consultant was not able to prepare a report that met quality criteria as stipulated in the terms o f reference. The Project Management has consequently decided to retain another consultant to finalize the work. The project team has prepared an interim evaluation report which confirms that the project has had an overall positive impact on land holdings, and that beneficiaries have improved agricultural productivity, food security and household incomes. Key challenges 15. The original project was designed as a pilot, and several challenges will affect its scalability. Two o f these have been identified as requiring particular attention and are included in the program for which additional financing is sought. These are weak capacity in land administration and deficiencies in the legal and regulatory environment la) Weak capacity in land administration: The pace at which land transactions are undertaken is very slow in Malawi, and this constrains the pace at which land reform could be scaled up. Land registries at district, regional and national levels are manually-based and most of the records are in disarray. Capacity in surveying and registratiofi i s inadequate. The additional financing will strengthen capacity in these areas. (b) Weak policv environment to support the development o f land markets: Although the Government has a new land policy which was adopted in 2002, a new land law which would aim to create a favorable environment for the development o f land markets has not yet been enacted. Throughout the implementation of the pilot project, the development of land markets has been hindered by, among others, (i) inconsistencies in the collection o f land rent, (ii)lack o f an appropriate tax on i ithe freehold land, and ( i ) lack o f progress o n the enactment o f a new Land Law. Slow progress in these key policy reform issues i s likely to undermine the success in any follow-up land reform programme in Malawi. These issues will be dealt with under the proposed additional financing. Fiduciary Performance 6 16. Fiduciary aspects o f project performance are summarized in the sections below: (a) Procurement performance: The Bank has undertaken post procurement reviews annually and performance has been rated moderately to fully satisfactory. Procurement cycle management (and supply chain management) has been on track throughout the implementation o f the project. The project procurement performance is currently rated as "Satisfactory". Some issues such as community procurement requiring attention to improve procurement performance have been identified and an action plan was agreed with Government during the March 2009 mission. The plan is presented in Appendix E. (b) Financial management performance: The project i s currently rated "Satisfactory" in performance o f financial management. The Audit Reports for FY05, FY06, FY07, FY08, all have been received, albeit slightly late. All the submitted audit reports have had unqualified audit opinions except the FY 2007 audit report which had an "except for" qualification. After the audit review it was decided that the internal control weaknesses identified did not warrant a qualification but should be highlighted in the management letter. The auditors raised a number o f issues in management letters and there has been follow up o n the audit recommendations by the Bank's fiduciary team. The earlier action plans generally have been implemented. In instances where the action plan has not been fully implemented, the project has provided a satisfactory explanation to justify why certain actions were not taken as proposed. The project is up to date with the submissions o f the quarterly Financial Monitoring Reports (FMRs). From the foregoing, it can be concluded that the Financial Management covenants have been met. As o f the March 2009 mission, there was an outstanding action with regard to migration to the S U N system; however, this has now been achieved. (c) Disbursement performance: The project encountered slow disbursements during the initial two years when relocation could not start due to a number of challenges. However, since the mid-term review, disbursement has been consistently above schedule mainly due to quick processing o f beneficiary relocations. Given the current pace o f disbursements, the Additional Financing operation (US$ 10,000,000 over two years) assumes a moderate per annum financing plan roughly the same as the disbursement under the project (US$ 27,000,000 over five years, moderately backloaded). (d) Environmental and social safewards: The current rating on environmental and social safeguards is "Satisfactory". The project is on track in implementing the environmental management plan. The project has not encountered serious social problems due to attention to potential conflicts during design and implementation, and inclusion of public awareness to avoid them. A social assessment study commissioned by the project indicated that there are no major 7 social impacts and conflicts as a result o f the relocations. The resettlement approach involved purchase of f m s from willing sellers and voluntary settlement o f beneficiaries. As a result, OP/BP 4.12, Involuntary Resettlement, i s not triggered5. All land acquired by the BGs so far has been bought from voluntary sellers. There have not been any compulsory acquisitions, and the environmental and social screening and review process envisaged under the Environmental Management Plan prepared for purposes o f the original grant has been applied judiciously to ensure that the land i s free o f encroachers, that there are no disputes with former estate workers and that i t i s free o f any other encumbrances. Former workers have not been forced to leave the acquired farms and, in cases where they have expressed a desire to j o i n the project, have also benefitted from the relocation program. To ensure continued compliance, the Bank will undertake an- audit as per Bank guidelines as contained in the Involuntary Resettlement Sourcebook (2004). I addition, greater emphasis n will be given to some environmental issues that are n o w understood to be more relevant than at the design stage, such as human / animal conflict, including threats to people and crops from elephants wandering out o f protected areas into populated areas where the project has been active. Accordingly, and as noted in Section V below, special attention will be accorded to avoid relocating beneficiary groups to farms that are under significant threat by wandering elephants and other wild animals. Rationale for Requesting the Additional Financing 17. The Additional Financing i s justified as per the requirements o f paragraph 2 o f OP 13.20. The planned activities are consistent with the PDO, and with the current Malawi CAS. The objectives are also in line with the Millennium Development Goals (MDGs) in terms o f reducing poverty, improving food security and household incomes. The proposed scale-up activities have been appraised and will be concluded within the period o f the 21 months period o f the extension o f the closing date, which is within the three years window o f the current closing date of the project (as per the requirements o f OP13.20, paragraph 2). 18. The proposed additional financing will be used: (i) cover a shortfall for to relocation of 1,000 households to reach the project target o f 15,000 households6, and (ii) to provide additional resources to modified activities under the existing components. The proceeds will be allocated as follows: Land Acquisition and Farm Development ($ 1.09 million), Land Administration ($3.86 million), Capacity Building (for government land administration institutions ($1.79 million) and for improved systems for more efficient land rent and tax collection), and Project Management, Monitoring and Evaluation ($2.70 million). 19. The additional financing will support coverage o f the remaining target beneficiaries. As indicated at MTR, the amount currently available for the project i s not OP4.12 applies to actions taken without the displaced person's informed consent or power o f choice. The project has funds from the original grant to relocate 1,344 households (61 BGs) whose sub-projects have already been processed. 8 sufficient to cover the costs o f the relocation o f the balance o f about 1,000 households required to meet the target o f 15,000 beneficiary households. This is in part because in December 2005 IDA financing was raised to 100 percent for all disbursement categories, resulting in a reduction o f US$1.654 million in the overall project budget. Furthermore, the initial allocation for land acquisition and relocation was insufficient to cover the needs `bf 15,000 beneficiaries, and this shortfall was not apparent at the time o f appraisal. Beneficiaries require complementary services, such as extension and other capacity building services to allow them to use the land acquired productively. A portion o f the additional financing will cover activities in the recently extended project area in the districts o f Balaka and Ntcheu. The project was extended to these districts following the shortage o f land in the original receiving districts o f Mangochi and Machinga. These new districts are very close to the original project area and do not therefore result in significant added costs to the project's operational expenses. Finally, h n d s will be needed to cover operational expenses during the extension period. Additional financing was considered appropriate to enable the Borrower to effectively complete the pilot project, analyze the lessons and use them in the preparation o f the scaled-up land reform program. Preparation o f a new operation was considered inappropriate and pre-mature given that the pilot project has not been completed and therefore the Government does not have a firm basis for the preparation o f its scale-up operation. 20. The additional financing will strengthen land registries at district level and surveying and registration services. Capacities in land surveying, land administration and land information technology at national and district levels are crucial for effective delivery o f services under land reform programs while a transparent, efficient and secure process to transfer land i s also critical for improving the wider investment climate in Malawi. Modernization o f land registries and land administration would improve services and governance and ease o f access to land by investors, while reducing the amount o f time it takes to register a land transfer. 21. The Government intends to scale up the program nationwide, and the additional financing will assist in this endeavor by providing an objective evaluation o f the pilot and drawing lessons to inform the design o f a scaled-up program, including options for resettlement and technical, environmental and social dimensions o f the program. In addition, the additional financing will assist in cleaning up and computerization o f the land records which will facilitate the establishment o f an efficient land information system which is required to support the development o f land markets, once the land law is passed. The Government views IDA'Scontinuing support as critical over the next two years while plans for the scale-up are finalized. 22. Finally, part o f the additional financing will be utilized to support activities to resolve policy issues that hinder the development o f land markets. Important among these are collection o f land rent, introduction o f a land tax on freehold land, and enactment o f the new Land Law. The specific activities to be financed through the additional financing in support o f the legal framework include sensitization and consultation o f interested stakeholders such as estate owners and Members o f Parliament to get their support before 9 tabling the draft Bill to Parliament. This financing will support Government's own plan to finalize the Bill and get i t approved by Parliament. 23. The project remains as originally designed and appraised. The proposed changes are modest and consist primarily o f extending the Bank's financial contribution to the project by US$10 million to address cost overruns and allow additional focused attention to specific issues related to: (i)strengthening the land administration capacity through the acquisition o f equipment and vehicle, provision o f technical advisory services and training, and the financing o f Operating Costs (ii) provision o f support towards lobbying stakeholders to support the passing o f the new land law including building the capacity o f the MOLHUD to effectively collect land rent/tax as well as introduction o f a tax o n freehold land. Finally, the additional financing will also provide support towards the preparation o f the scale-up land reform program. The economic, financial, and technical justifications remain the same as in the original project. The project components and implementation modalities remain unchanged. For all procurement and consultant services under the additional financing, the "Guidelines: Procurement under IBRD Loans and IDA Credits" dated M a y 2004, revised October 2006; and "Guidelines: Selection and Employment o f Consultants by World Bank Borrowers'' dated M a y 2004, revised October 2006 will apply. The environmental management plan f i o m the original grant remains applicable, but an addendum will be included to give greater emphasis to some environmental issues that are now understood to be more relevant than at the design stage. 111. PROPOSED CHANGES 24. Extension and reallocations: The task team i s proposing to extend the closing date o f the original Grant from December 31 2009 through September 30, 201 1. This is also the proposed closing date for the Additional Financing. 25. The costs and financing allocation, by component, for the original operation and for the proposed additional financing are presented in Tables 2 and 3 (below). A s previously noted, there is no change in the design as w e l l as the project components or their implementation modalities. However, modest modifications will be done to components 2 (Land administration) to incorporate specific training activities in surveying, registration, titling and provide for equipment to clean-up and modernize the land registries at the district, regional and national levels. In particular, the modifications to Part B, as i io highlighted in Section I11(4), ( iand ( i )f the Appendix.to the FA are: i) (i) enhancement o f district, regional, and national land registries through capacity building o f the Surveyor General's Department in surveying, registration, and titling services, and land information technology; and ( i assessment o f issues relating to land rent collection, freehold land i) taxation, and finalization o f the Recipient's new land law, and identification o f possible solutions. 10 26. In view o f the modified activities, new and/or modified intermediate indicators will be introduced within the results framework to enable measuring o f progress with regard to the modified activities. For example, a new indicator on time taken to complete a land registration process will be included to assess progress o n land administration capacity strengthening. On the audit requirement, Government will produce annual financial statements and submit annual audit reports to the Bank. This is different from the semi- annual requirement in the original Grant. Table 2: Cost Summary by Project Component Table 3: Project Cost Category Disbursement Summary Proposed N e w Indicators Category Proposed IDA Additional Financing' Financing (US$ million equivalent) LAFD Grants 1.09 100% Goods 2.08 100% Consultant services 2.17 100% Training and workshops 2.97 100% Operating costs 1.13 100% PPF 0 Unallocated 0.56 100% Total 10.00 100% 'IDA financing i s inclusive o f taxes. 11 progress on project impact evaluation, given that the decision to scale-up would have to be based on the evaluation of the pilot project. The results framework in Annex C reflects the original project and additional financing and will supersede the results framework and arrangements in the original PAD. Number o f land registries computerized and functional Reduced number o f days taken to register a land transfer 0 Number o f staff trained in surveying and registration o f land parcels, including monitoring and collection o f land taxhent Timely and acceptable project impact evaluation report 28. The words "agricultural productivity" have been added to the PDO statement to align with the outcome indicator. Secondly, some outcome indicators have been refined and new intermediate results have been introduced in line with the modified activities. For example, the income indicator will be reported as real and not nominal income in order to control for price increases or inflation in the income changes. Thirdly, the outcome a indicator o n increased production h s been refinedchanged to increased productivity to better measure the PDO. Fourthly, the third outcome indicator in the PAD has been moved to component 4 because i t i s more aligned to the specific intermediate result under component 4. This will help to keep the project management focused on completing the impact evaluation. The increase in the number o f staff trained and the reduction in the time taken to process a land transfer have been introduced as new intermediate results. Other intermediate results indicators have been introduced to adequately capture the modified activities and other indicators have been dropped because they are either difficult to monitor or measure based on the experience encountered during the implementation o f the original project. These changes and refinements are summarized in Table 4. Table 4: Refinements in the intermediate results and indicators Original PDO Refined PDO To increase the incomes o f about 15,000 poor To increase the agricultural productivity and 1 rural families through the implementation of a incomes o f about 15,000 poor rural families decentralized, voluntary community-based land through the implementation o f a decentralized, reform pilot program o n eligible land in the voluntary community-based land reform Project districts program on eligible land in the Project districts. Original outcome indicators Refined outcome indicators Incomes o f participating families compared to Increase in real incomes o f participating control groups and pre-project income levels families as compared to those o f control groups and o f such families prior to the project (Malawi Kwacha /month) Increased agricultural production Increase in agricultural productivity (maize and Original intermediate result indicators New or refined intermediate result indicators Number o f farm families established on land Nochange 12 acquired through the project Amount, speed and cost o f land acquisition per Dropped (difficult to monitor and measure) beneficiary family and per hectare Speed and cost o f establishment o f agricultural Dropped (difficult to monitor and measure) production per beneficiary family and per hectare Number o f beneficiary groups which have Nochange received appropriate documentation o f land owner ship Number, speed and cost o f titles, cautions and Dropped hectares registered and sketch maps completed Number o f Land Registries computerized and functional Reduced number o f days taken to register a land transfer Number and quality o f farm development N o change proposals by eligible beneficiary communities and/or hectares o f land received, reviewed, approved and fully disbursed Number o f staff trained Timeliness and content o f reports generated by Improved timeliness and quality o f reports M&E system generated by the M&E system Timely and acceptable project impact evaluation report IV. CONSISTENCY WITH THE COUNTRY ASSISTANCE STRATEGY 29. The proposed additional financing i s consistent with the FY07-10 Malawi Country Assistance Strategy (CAS) and also supports the Government o f Malawi's Growth and Development Strategy, its Poverty Reduction Strategy. The proposed additional financing was included among the planned FY09 lending deliverables, and carried over to FY10. The activities o f the proposed Additional Financing remain consistent with objectives o f the CAS (Outcome l), which seeks to enhance agricultural productivity and household incomes. V. APPRAISAL OF SCALED-UP PROJECT Project ImplementationArrangements 30. The institutional arrangements for the Additional Financing remain unchanged from the original operation. The additional financing will be implemented by the Project Management Unit (PMU). In pursuit o f sustainability and in light o f the intent to scale the program up, the Government will gradually shift administrative responsibility from the PMU which is under the supervisory authority o f the MOLHUD, to the Ministry proper. This shift is envisaged to have been completed by the closing date for the Additional Financing. The MOLHUD has prepared a detailed action plan to achieve this. 13 3 1. Project Analyses: The fiduciary, economic, technical, social, and environmental analyses and justifications remain the same as in the original project appraisal document. Fiduciary Analvsis: The Original Grant disburses o n the basis o f FMRs into the Special Accounts. There are no proposed changes to this arrangement apart from that now reference is made to Designated Accounts instead o f Special Accounts. The Designated Account for the Additional Financing will be held at a commercial bank. The project's regular financial reporting will be provided through quarterly financial management reports (FMR) submitted to the Bank no later than 45 days following the end o f the quarter. Government will continue to produce annual financial statements and submit annual audit reports to the Bank no later than 6 months following the end o f the fiscal year. Semi- annual audit o f the project financial statements was required under the Original project. However, in line with the FM risk rating o f the Additional Financing, this has been changed to annual audit for the Additional Financing Grant. The external audit terms o f reference have been agreed with the Bank. Economic Analysis: Household incomes o f beneficiaries have improved. Taking into account productivity increases, the estimated economic rate o f return i s at least 17 percent (with a net present value o f US$8.2 million), assuming full relocation o f 15,000 households and the total costs associated with Additional Financing'. At less than full relocation and without Additional Financing, the estimated economic rate o f return i s 14 percent, approximately the same as the appraisal estimate. The estimated rate o f return relates to total project costs, not just the resettlement component, and includes all costs o f capacity building in the Ministry o f Lands and all operational and administration costs o f the project. A more rigorous evaluation o f the rate o f return, taking into account synergy between and among various programs serving beneficiaries, will be undertaken prior to the project's closing. Technical Analysis: The technical aspects o f the project are not expected to change, although the main emphasis will shift towards strengthening land administration capacity. There will be closer collaboration with the Surveyor General's Department as well as the Commissioner for Lands to ensure that capacity is appropriately achieved. Other technical competencies will be absorbed into the Ministry o f Lands, Housing and Urban Development as the PMU winds-down. ' Key assumptions are: average yields for hybrid maize and burley tobacco are 2,269 kgiha and 1,390 k g h a respectively, as estimated by the impact evaluation survey and the number o f beneficiaries i s 15,000. Each beneficiary would have o n average 2.2 hectares. The economic rate o f return would have been much higher if we considered the benefits from land administration and capacity building components (which are difficult to value in the short-term). T h i s analysis pertains to project beneficiaries and all o f them did not benefit from the Input Subsidy Program because they were not eligible given that they were already benefiting from another Government program. 14 (d) Environmental Analysis: There are no unresolved safeguard issues associated with the current operation. All legal covenants have been met and the implementation o f the environmental management plan is proceeding in a satisfactory manner. Local level EMPs have been developed in consultation with local communities to include specific measures to mitigate negative environmental and social impacts observed at some project sites, such as the clearing of large areas with vegetation and trees by some beneficiary groups, cultivation o f wetlands, and human /animal conflicts (specifically wandering elephants in part o f the project area). The Environmental Management Plan and the Project Implementation Plan have been updated to enhance attention to these issues, including the adoption o f a simple land use planning tool by the BGs to enhance their farm planning capabilities; enhanced training in integrated pest management (IPM), contour marker ridge demarcation and planting o f vertivar grass for better soil conservation o n cultivated lands; promotion o f tree planting and nursery development; and the sustainable utilization o f wetlands. Specific IPM measures, including e.g. planting o f chilies and jatropha along field boundaries have also been adopted to keep away elephants from villages in and around the project areas. The project does not include any new civil works. The proposed additional financing will not change the environmental category o f the project, which is B (Partial Environmental Assessment) or trigger any new safeguard policies. The additional financing does not involve any exception to Bank policies. (e) Social Analysis: Most o f the social challenges have been addressed in the implementation o f the pilot project. The additional financing i s not expected to result in new social challenges, except some expected initial resistance from landowners to increased taxes arising from the implementation o f the land policy reforms. The additional financing will help the Government to undertake adequate stakeholder consultations to dispel any o f these challenges. 32. Sustuinubility: K e y issues related to the institutional, technical, and financial sustainability o f the proposed Additional Financing are summarized below. (a) Institutional sustainability The lessons learnt from the pilot project will be mainstreamed in the scaled-up program to be administered by the Ministry o f Lands, Urban Housing and Development. The Ministry has shown strong commitment to the implementation o f the project and i s likely to able to absorb the lessons. Other relevant sector and line ministries, such as Local Government, Agriculture and Finance, as well as district authorities, have also been committed through the implementation o f the project and are likely to be supportive o f the broader land reform programme. Prospects for sustainability are good, and will improve when the outstanding policy reforms are fully adopted. (b) Technical sustainability: Technical sustainability i s likely to be affected by the capacity challenges in the line and sector ministries. These challenges will 15 remain for some time, The capacity building proposed under the Additional Financing will contribute towards addressing the technical capacity in MOLHUD and therefore improve the technical sustainability o f the development outcomes created through this project. (c) Financial sustainability: Financial sustainability o f the activities supported under the pilot project i s not at high risk, since beneficiary groups have their land with secure title, do not carry residual financial obligations associated with the transfer, and are earning higher incomes. Financial implications o f scaling up the program and retaining investments in land administration after the project closes are substantial. The GOM will face trade-offs among the various programs supporting rural development, and will probably need to seek external financing. 16 VI. EXPECTED OUTCOMES 33. The Community-Based Rural Land Development Project has demonstrated the feasibility o f a market-assisted voluntary land reform. The project has yielded key lessons upon which the design o f any fiture land reform programs will b e based. With the additional financing, i t i s anticipated that the project will strengthen land administration capacity and contribute to a favorable policy environment for development o f land markets. The project indicators are derived from the original results framework and are detailed in Appendix C. The Results Framework has been updated to reflect progress to date under the parent project and proposed new indicators under Additional Financing. VII. BENEFITS AND R I S K S 34. With additional financing, the economic rate o f return o f the project would remain within the initially estimated range (14% to 17%) with a net present value estimated to be US$8.2 million. Although the costs associated with the relocation have been somewhat higher than initially estimated, the income increases have also been high due to increased yields and high prices, so the overall rate o f return has not changed much from the initial estimate. The new approach to land redistribution piloted under this project has already reduced tensions around the land issue, and 15,000 poor families will have been empowered by the end o f the project to start agricultural production on previously under- utilized land 35. The major risks are related to: (i) government's ability to implement sensitive the policy reforms such as land tax and land rent increases and (ii) weak capacity o f the land administration system, especially at district level. In recognition o f these issues, the Bank, through this and other projects such as the Business Environment Strengthening Technical Assistance Project (BESTAP)9 i s providing support aimed at strengthening the land administration capacities at national and district level. The original project's risks such as those related to land reform policy and decentralization will continue to affect the project as well as the broader agenda on land reform in Malawi. The mitigation measures for these risks as specified in the PAD for the original project will also continue to be implemented during the Additional Financing phase o f the project. The critical risks, including those of the original project that are likely to affect the implementation o f the additional financing and their mitigation measures are presented in Table 5. The assessment o f the risks is based o n the experience during the implementation o f the original project. B E S T A P i s a W o r l d Bank funded project (H293 MAI) aimed at improving the business climate in Malawi. I t s support towards land administration is aimed at improving the speed o f processing land title deeds for investors as a way o f improving the investment climate. 17 Table 5: Risk assessment Risk I Risk Rating I Mitigation measure (current) F r o m outputs to objective Government does not use land rents and M Continued support towards policy reforms land tax policy instrument to suppress and legal framework and the passing o f speculative behavior (Government not the new land law and strengthening the willing to implement sensitive policy capacity to monitor and collect land reforms) taxeshents The New Land L a w i s not passed and S AF will support activities aimed at therefore the legal framework for fostering consultation and sensitization o f supporting decentralized land key stakeholders towards the approval o f administration i s not in place the Draft Land Bill. Property rights allocated to beneficiaries M Project provides group titles to do not provide sufficient tenure security to I beneficiary groups and encourages prepare and implement profitable land acquisition and farm development proposals district development framework M&E system i s ineffective M M&E performance will be closely monitored and supported through TA targeted to specific issues Financial management and procurement M MASAF will continue to provide support capacity o f project implementation to local Government institutions in the structures i s weak pilot districts Overall risk rating M 18 VIII. FINANCIAL TERMS AND CONDITIONS FOR THE ADDITIONAL FINANCING 36. The additional financing will be provided as an IDA Grant through an additional Financing Agreement signed by the Republic o f M a l a w i and IDA. Legal conditions o f effectiveness are the standard ones set out in the 2006 IDA General Conditions, that is, due authorization or ratification o f the Financing Agreement and submission o f a satisfactory legal opinion to IDA confirming that such authorization or ratification has been effected and that the Financing Agreement i s binding upon the Republic o f Malawi. Negotiation conditions 37. The following negotiation condition was stipulated and subsequently met: (i) Completion o f an interim project impact assessment report by the PMU. The project has submitted an interim project impact assessment report which was reviewed by the Bank prior to Negotiations. Effectiveness conditions 38. The conditions o f effectiveness are: (i) Submission o f an annual work-plan and budget for the Recipient's first fiscal year o f Project implementation acceptable to the Association; ( i Authorization or ratification o f the Financing Agreement and submission of i) a satisfactory legal opinion to IDA confirming that such authorization or ratification has been effected and that the Financing Agreement i s binding upon the Republic o f Malawi. 19 ANNEX A: PREPARATIONAND TIMETABLE OF KEY PROCESSING STEPS MALAWI: COMMUNITY- BASED RURAL LAND DEVELOPMENT PROJECT ADDITIONAL FINANCING Project Milestone Date Technical Discussions/ Project October 14,2009 Negotiations RVP Approval October 23,2009 Board Presentation November 19.2009 Date o f Planned Effectiveness March 31,2010 Grant Closing September 30,201 1 IDA staff and consultants involved in the preparation o f this project included: Name Title Unit Hardwick Tchale Amicultural Economist/ Task Team Leader Y AFTAR Frank Byamugisha Operations Advisor AFTAR Simon Chinva Procurement Specialist AFTPC Francis Mkandawire Financial Management Consultant AFTFM Christine Kamwendo Operations Officer AFMMW Lungiswa Gxaba Senior Environmental becialist AFTEN Grace Chilambo Program Assistant AFMMW Sameena Dost Senior Counsel LEGAF Suzanne Morris Senior Finance Officer CTRFC Mary Bitekerezo Senior Social Development Specialist AFTCS 20 ANNEX B: MONITORING AND EVALUATION IMPROVEMENT ACTION PLAN MALAWI: COMMUNITY- BASED RURAL LAND DEVELOPMENT PROJECT ADDITIONAL FINANCING Item Observed deficiencies Actions Required Responsible Entity Completion Date 1 Lack o f interim Appoint new consultants for Project Management Completed evidence on original preparation o f an independent nt u i project impact given impact evaluation o f the the failure o f the original project independent evaluation to produce quality and timely reports 2 Inadequate panel data Consultant to improve and Project Management June 20 10 to undertake credible complete data collection for nt u i impact evaluation the impact evaluation following the engagement o f a m new f . 3 Failure o f independent Consultants to prepare an Project Management Four months evaluation consultant to independent impact evaluation Unit / M O L H U D after prepare and submit report o f the original project effectiveness quality reports I 4 Submit the independent impact Project Management evaluation report o f the UnirnOLHuD original project to the Bank 5. Management Finalize the establishment o f a Project Management Information System not fully h c t i o n a l M I S that nt u i fully h c t i o n a l captures all relevant M&E effectiveness data 6. Inadequate monitoring Strengthen environmental Project Management o f the implementation monitoring at the District level u i nt until July 20 10 o f the E M P District Environmental Monitorine Team 21 ANNEX C: RESULTS FRAMEWORK MALAWI: COMMUNITY- BASED RURAL LAND DEVELOPMENT PROJECT ADDITIONAL FINANCING To increase agricultural productivity and incomes o f about 15,000 poor rural families by implementing a such families prior to the project decentralized, voluntary (Malawi Kwacha /month) community-based land 9 Increase reform program on eligible land in the project districts. Land acquired, number o f 9 Number o f farm families established Assess the effectiveness o f beneficiary families achieved on land acquired through the project project in facilitating land acquisition and relocation o f beneficiaries, including establishment o f farm plans Decentralized land 9 Number o f beneficiary groups Assess the effectiveness o f administration system in place receiving appropriate documentation the project in piloting a o f land ownership community-based market assisted land reform, as 9 Number o f Land Registries well as establishing a computerized and functional decentralized and effective land administration system 9 Reduced number o f days taken to register a land transfer I Component 3: Capacity Building Capacity to implement 9 Number and quality o f farm Assess the effectiveness of community driven land development proposals by eligible the capacity building acquisition and farm beneficiary communities i.e. hectares activities in support o f development i s created o f land received, reviewed, approved strengthened land and fully disbursed. administration Increased number o f staff 9 Number o f staff trained trained in surveying and registration o f land parcels, including monitoring and collection o f land tadrent 22 Monitoring and evaluation 9 Improved timeliness and quality o f Ensure effective project system provides appropriate reports generated by the M&E system management including the information for effective evaluation o f the pilot project management and 9 Timely and acceptable project impact scaling-up decision after pilot evaluation report Droiect comdetion 23 3 0 I P m 0 0 m 3 3 * 2 3 v, v, 3 3 8 3 : 3 - 0 0 3 3 v, v, 3 3 3 v, m 10 r- 0 d , 2 3 n d 0 a 2 3 2 t 3 2 d n 3 3 ANNEX E: PROCUREMENT IMPROVEMENT ACTION PLAN MALAWI: COMMUNITY- BASED RURAL LAND DEVELOPMENT PROJECT ADDITIONAL FINANCING Item Observed deficiencies Actions Required Responsible Completion entity Date Beneficiary groups face Intensify I E C messages targeting traders CBRLDP Continuous challenges on and beneficiary groups PMU procurement under Land Revamp the use o f LAMIUprice data CBRLDP Continuous Acquisition and bank to guide beneficiary groups on ~~ PMU 1 Administration expected prices Component Institute independent technical audits to CBRLDP Continuous cover procurement undertaken by PMU beneficiary groups alongside the annual financial audits Delays in procurement Prepare a detailed procurement plan CBRLDP completed w i l l be detrimental to with monitorable timelines PMU 2 implementation of the Identify consultants with long lead times CBRLDP Six months Additional Financing and start the process immediately. All PMU after large value consultants to be engaged within first six months after for all identifiedconsultants 26 ANNEX F: STATEMENT OF LOANS AND CREDITS MALAWI: COMMUNITY BASED RURAL LAND DEVELOPMENT PROJECT ADDITIONAL FINANCING Difference between Original Amounts in US$ expected and actual Millions disbursements Project ID FY Purpose IBRD IDA SF GEF Cancel. Undisb. Orig. FrmRev'd P103773 2007 Business Environment 0.00 15.00 0.00 0.00 0.00 15.30 0.00 0.30 Strengthening PO96336 2007 Second National Water 0.00 50.00 0.00 0.00 0.00 51.20 0.00 1.20 Development PO57761 2006 Infrastructure Services 0.00 40.00 0.00 0.00 0.00 41.10 0.00 1.10 PO84148 2006 MW- Irrig. Rural Livelihood 0.00 40.00 0.00 0.00 0.00 35.20 0.00 0.00 and Agric. Dev. PO83401 2005 Health Sector Support 0.00 0.00 0.00 0.00 0.00 15.39 0.00 0.00 PO70823 2005 MW- Education Sector Support 0.00 32.2 0.00 0.00 0.00 22.00 0.00 0.00 PO72395 2004 M W - FIMAG SAL 0.00 50.00 0.00 0.00 0.00 0.00 0.00 0.00 PO75247 2004 MW- Com Based Rural Land 0.00 27.00 0.00 0.00 0.00 13.70 0.00 0.00 Dev. PO7382 1 2004 Multi-sector Aids Project 0.00 34.57 0.00 0.00 0.00 6.90 0.00 0.00 PO75911 2003 MW-MASAF APL3 0.00 32.80 0.00 0.00 0.00 0.10 14.65 0.00 PO78408 2003 Fin. Mgmt. Transparency, 0.00 23.70 0.00 0.00 0.00 12.50 4.03 0.00 Accountability PO70235 2001 Regional Trade Facilitation 0.00 15.00 0.00 0.00 0.00 0.00 9.83 0.00 PO35917 2001 Mulanje Mt. Biodiversity 0.00 0.00 0.00 6.75 0.00 0.00 6.75 1.11 Conservation PO63095 2000 Privatization and Utility 0.00 28.90 0.00 0.00 0.00 3.50 16.70 4.94 Reform PO01666 1999 MW-Road Main. & 0.00 30.00 0.00 0.00 0.00 0.00 10.93 6.77 Rehabilitation PO01670 1998 Secondary Education 0.00 48.20 0.00 0.00 0.00 0.00 10.69 -0.05 Total: 0.00 467.37 0.00 6.75 0.00 216.89 73.58 15.37 MALAWI STATEMENT OF IFC's Held and Disbursed Portfolio I Millions of U S Dollars n Committed Disbursed FY IFC IFC approval Company Loan Equity Quasi Partic. 1 Loan Equity Quasi Partic. 2000 NICO 0.00 0.52 0.00 0.00 0.00 0.52 0.00 0.00 2007 Celtel 15.00 0.00 0.00 15.oo 0.00 0.00 2007 N B S Bank 3.00 0.00 0.00 3.00 0.00 0.00 Total portfolio 18.00 0.00 0.00 18.00 0.00 0.00 Approvals pending commitment FY approval Company Loan Equity Quasi Partic. Total pending commitment 0.00 0.00 0.00 0.00 27 ANNEX G COUNTRY AT A GLANCE MALAWI: COMMUNITY BASED RURAL LAND DEVELOPMENT PROJECT ADDITIONAL FINANCING Malawi at a glance 9124108 5ub- Saharan O - L W Mdowi Mica inumm 13.9 &JD 1,296. 250 w 578 3.5 762 749 2.6 25 22 2.3 26 27 18 36 32 48 51 57 76 94 85 18 27 23 76 58 68 58 61 119 94 94 117 99 100 121 88 89 1997 2006 2007 E ~ C n t i o s ' 2.7 3.2 3.6 11.6 23.7 28.5 Trade 21.4 17.0 14.9 -0.6 11.2 17.6 -2.9 15.5 21.9 I -5.1 -14.5 -19.4 -15.0 2.4 1.0 0.6 swing 115.5 83.6 26.9 38.0 14.2 11.5 5.5 P.3 $487-97 199747 2006 Mo7 2007-11 tarareoe~oravm) GDP ~prespita Expaisdpoodrwdsenias 3.3 1.0 3.5 2.1 0.6 -7.9 7.9 52 -11.8 7.4 4.7 -1.1 4.7 4.4 -5.3 I --ru'--LavlrxMlc- 4987 49.0 24.9 1997 326 18.1 2006 34.2 19.7 2007 34.3 20.4 I Growthaf capital a d GDP (w) m 4 16.8 13.5 13.6 14.1 zp 26.1 49.3 46.1 45.3 n 66.0 83.1 n.0 70.8 -m 19.1 17.5 11.8 11.6 27.8 33.6 29.4 2516 28 20c7 75 76 131 -5 1 -345 29 MAP SECTION IBRD 33440 32°E 34°E 36°E To To Song we Mbeya TA NZA NIA Tunduma Chitipa MALAWI Karonga 10°S Chisenga 10°S KAR ON GA To C HI T I PA CHI Muyombe Nykia Chilumba (2,606 m) Chelinda Mkondowe To Muyombe Livingstonia Katumbe R UM PHI Rumphi Ruarwe M ZI M B A s. Kafukule Mzuzu Mtn Euthini Nkhata NORTHERN Bay ZAMBIA a N KHATA Viphy B AY Mzimba Chinteche (MALAWI) Lake Mala 12°S 12°S Luwawa To Lundazi Nkhunga wi Kaluluma KASUNGU Nkhotakota Kasungu NKHOTAKOTA MOZAMBIQUE N T CHI S I Ntchisi C E N T R A L MCHINJI DOWA Dowa S AL I M A Makanjila Bua To Mchinji Chipata Salima 14°S LILONGWE 14°S Namitete Monkey Bay LI L LIL ON GW E DE DZA To To Cuamba Furancungo MANGOCHI Dedza Mangochi To Ulongwe NTCHEU SOUTHERN 0 20 40 60 80 100 Kilometers To Cuamba Ntcheu BalakaM ACHI N GA MOZAMBIQUE 0 20 40 60 Miles Machinga ire Sh 32°E Lake ZOM B A Chilwa M WAN ZA Zomba Lirangwe MALAW I To Tete BLANTYRE PHALOMBE Mwanza Chiradzulu Blantyre CHIRADZULU Phalombe M UL AN MULANJE JE SELECTED CITIES AND TOWNS 16°S Chikwawa Mulanje Sapitwa 16°S THYOLO (3,002 m) DISTRICT CAPITALS Thyolo CHI KWAWA To REGION CAPITALS Liciro N'gabu NATIONAL CAPITAL To Morire RIVERS NSANJE MAIN ROADS Nsanje RAILROADS DISTRICT BOUNDARIES This map was produced by the Map Design Unit of The World Bank. To REGION BOUNDARIES The boundaries, colors, denominations and any other information Vila de Sena shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, or any INTERNATIONAL BOUNDARIES endorsement or acceptance of such boundaries. 36°E NOVEMBER 2004