INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: ISDSC8722 Date ISDS Prepared/Updated: 31-Jan-2015 Date ISDS Approved/Disclosed: 02-Feb-2015 I. BASIC INFORMATION A. Basic Project Data Country: South Sudan Project ID: P130119 Project Name: South Sudan Agriculture Development Project (P130119) Task Team Maurizio Guadagni Leader(s): Estimated 02-Mar-2015 Estimated 28-Apr-2015 Appraisal Date: Board Date: Managing Unit: GFADR Lending Specific Investment Loan Instrument: Sector(s): Agricultural extension and research (45%), Crops (45%), Animal production (10%) Theme(s): Rural services and infrastructure (50%), Other rural development (50%) Financing (In USD Million) Total Project Cost: 70.00 Total Bank Financing: 50.00 Financing Gap: 5.00 Financing Source Amount BORROWER/RECIPIENT 0.00 IDA Grant 50.00 International Fund for Agriculture Development 15.00 Total 65.00 Environmental B - Partial Assessment Category: Is this a No Repeater project? B. Project Objectives The proposed objective of the project is to contribute to increasing agricultural production and productivity of participating households in selected project areas. It is envisaged that the project would help improve the livelihood and food security of vulnerable segments of the population. This medium term objective complements the ongoing food crisis emergency programs that several donors are implementing, including the World Bank funded Emergency Food Crisis Response Project, and would act as a bridge to move from emergency relief to more sustainable recovery. C. Project Description The proposed project activities would be organized according to the following three components: (i) Agricultural extension and farm demonstrations; (ii) Seed production and distribution; and (iii) Project implementation and management. o Component 1. Agricultural Extension and Farm Demonstrations The objective of this component is to increase agricultural productivity by increasing adoption ofimproved technologies facilitated through improved access to agricultural extension and farm demonstration services. An additional long term objective is institutional support to rebuilding the basic framework of an extension system. Decades of civil war have stifled traditional practices that ensured farmers' livelihoods in the past. The majority of South Sudanese farmers are applying inadequate cultivation practices, with extremely low productivity. Many farmers have not adopted improved technologies due to lack of awareness about such technologies. Yet, local and regional experience has shown that there are available improved production technologies which can significantly raise yields of most of the important crops. Agricultural extension is practically non- existent in the country, with the exception of some ad hoc services given by NGOs, essentially under emergency programs. The Directorate of Agricultural Production and Extension of the Ministry of Agriculture is poorly staffed and budgeted, and it has weak capacity for providing technical support to farmers, States or other local institutions. This component would have the following subcomponents: (a) strengthening basic extension services, (b) support for farmers field schools, (c) support for demonstration of improved farming practices, and (d) strengthening communal land ownership. Sub-component L.a. Strengthening basic extension services. This subcomponent will start to develop an extension service-delivery mechanism for disseminating improved agricultural practices to smallholders. To this end, the project will strengthen the Directorate of Agricultural Production and Extension to enable it to plan and execute a national extension system that is capable of reaching small farmers in the country. In order to have a uniform approach to the dissemination method of the extension messages, the project will support the Ministry in preparing guidelines that will be followed by public and private actors engaged in delivering extension service. During the preparation of this component, the team will consider if there is any mechanism which could allow public financing of extension while creating competition among a variety of providers. Project inputs will comprise staff training, transportation facilities, provision of incremental funds and technical assistance. Sub-component 1.b. Farmer Field Schools are designed to target a group of farmers. This extension delivery system has been developed and tested in South Sudan by FAO, and is appreciated for its pragmatism and cost effectiveness. Farmer field schools are managed by trained extension workers with knowledge of non-formal education methods, and farms are used as basic example for discovery-based learning. The process respects the experience that farmers bring with them and facilitates group development. Farmers work in small groups to ensure that each participant's ideas are shared, his/her uniqueness is accepted, and existing knowledge recognized. The activities are designed to respond to the immediate needs of farmers and are geared towards encouraging creativity, inter-dependence and group solidarity. The subcomponent will support adopting this approach as an important knowledge-disseminating system. Sub-component i.e. Demonstrations of improved farming practices. In parallel to the dissemination of improved technologies, the project will finance farm demonstrations to prove the feasibility and effectiveness of the proposed technologies. This is based on the consideration that farmers tend to be O more open to innovation whose benefits they can see with their own eyes and whose feasibility is demonstrated in real farm conditions. This subcomponent will be implemented through a Demand- Driven Matching Grant Scheme that will co-finance proposals coming from potential beneficiaries. The criteria for financing will be detailed in a grant manual whose dissemination will guarantee transparency. Sub-component 1.d. Strengthening communal land ownership. Most of the land used for agricultural production is held under communal ownership. While this ownership, under the oversight of traditional institutions, has historically been sufficient to secure farmers' land rights and was favorable to agricultural production, recent developments including legal uncertainties surrounding communal landownership as defined under the new South Sudanese law (where it is not clear what rights communities enjoy vis-d-vis the state) and new pressures on community lands, such as those associated with urban expansion, increasing land values, the commercial exploitation of natural resources, and the large-scale acquisition of land rights for public or private purpose have threatened communal land ownership. The sub-component will support a pilot to test the feasibility of strengthening communal land rights through formalization (survey, mapping and registration of rights). South Sudan's draft National Land Policy provides for organization of communities into formal groups and registering their land rights and the project will support the translation of policy into law an d will also provide support to organizing communities into legal entities and demarcating and registering their land. Extension topics. The component will work to increase adoption of simple existing technologies. The list below provides some example of topicswhich are considered priority to achieve the project objective: Agronomical practices: experience shows that adoption of very simple technologies, such as row planting, can lead to a more homogeneous seed distribution and thus increased yields. Other simple crop practices, such as improved weeding, crop rotation, particularly when using leguminous crops which fix nitrogen in the soil, the use of crop residues, mulching, reduced soil disturbance, intercropping, agro-forestry, etc., can mitigate soil erosion and maintain soil fertility. In addition, a there is an interesting experience in Rwanda with compost manure technology which could be replicated in South Sudan. All of these are Climate Smart Agriculture approaches which are fundamental to substitute the extremely limited availability of fertilizers due to the high import and transport costs; * Animal Power. Increasing animal power is key in addressing the current labor scarcity and related high costs; increase weed control, as well as in expanding cultivating land. Although there are initial cultural obstacles related to the use of cattle for draft animal power, experience in South Sudan has shown that these can be overcome with an effective extension work and practical demonstration; * Improved post-harvest handling. The long and humid rainy season contributes to significant post-harvest losses in South Sudan, even if a specific quantification is not really available. Various locally built storage facilities have been tested and provided good results in reducing crop losses. Likewise, basic processing, such as cassava drying and maize milling and solar drying technologies can contribute significantly to reduce post-harvest losses. The project will expand these activities through extension and the demand-driven matching grant scheme; * Water harvesting points. One of the problems in many regions of South Sudan is that precipitations during the rainy season can even be too abundant and lead to flooding, while the rest of the year is too dry to allow cultivation. Simple water harvesting systems, such as small earth/stone ridges or cisterns, which allow the catchment of flood water. Such systems can be used to add a second crop in the rotation, and/or as livestock drinking point. There is some experience with this approach in the country as animal water points (the so called "hafir") but the team is not aware of O any local experience with using this approach for crop production. This would therefore be considered a pilot; * Urban and peri-urban agriculture. Difficult transport, particularly during the rainy season, is a major challenge to agricultural development and food security. One approach to address this challenge is to bring agricultural production close to demand, near urban areas. FAO has been studying urban and peri-urban agriculture, and could provide technical backstopping to carry out this pilot. Component 2. Seed Production and Distribution This component has the objective to increase the domestic production of quality seeds, hence reducing the dependency on imports. This in turn would reduce the cost of improved seeds to farmers and consequently increase their use, a key factor to increase productivity. Availability of quality seeds in South Sudan is inadequate, and the current limited supply is imported from the neighboring countries, mainly by aid agencies. The Government does not have the capacity for seed testing and certification, while the private sector does not have the capacity to multiply and distribute seeds. Farmers' inadequate use of improved seeds is one of the main constraints of the agricultural sector. Crop varieties that will be addressed under the component were selected on the basis of the following two criteria: (i) crops that play a key role in local livelihood; and (ii) regional availability of improved varieties whose testing process has been completed, including through through the East Africa Agriculture Productivity Program. They will include, but not limited to: Recent releases of high yielding maize varieties from the neighboring countries; Drought, low-phosphorous tolerant, high-nitrogen fixing legumes such as cowpeas, common beans, chickpeas, pigeonpeas; * Short duration, drought tolerant, and aflatoxin free groundnuts; * Striga resistant sorghum; and Mosaic resistant cassava. The component would support the Directorate of Agricultural Research of the Ministry of Agriculture to carry out some minimal adaptive research and subsequent release of improved varieties and to produce foundation seeds. It will comprise the following subcomponents: (a) support to agricultural research and foundation seed production; (b) development of seed testing and certification capabilities, and (c) support to seed production and distribution. Subcomponent 2.a. Support to agricultural research and foundation seed production: This subcomponent will support the Directorate of Agricultural Research to undertake adaptive research to test the imported crop varieties for their suitability under South Sudan conditions and to produce foundation seeds for multiplication by certified seed growers. Institutional aspects such as policy and prioritization of research will have to be analyzed to decide whether policy changes will be required. The subcomponent will support this Directorate to import breeder seeds from neighboring countries, and to produce foundation seeds for multiplication by the private sector under the next sub- component. The subcomponent will explore possible coordination with the Association for Strengthening Agriculture Research in Eastern and Central Africa (ASARECA) of which South Sudan is now a member. Subcomponent 2.b. The sub-component will assist the Directorate of Agriculture Production in seed testing and certification. This Directorate is responsible for regulating the quality of seeds, but it has O not developed such a capacity so far. Yet, certifying the quality of seed is an important element of guarantee to farmers. The subcomponent will define a suitable institutional framework for regulating the quality of seeds and the parameters that constitute a certified seed. The actual testing and certification of seeds may be carried out directly by the Directorate or through other authorized entities, such as NGOs, if there will be possibility for cooperation between the public and private sectors. The subcomponent will support the Government in finalizing its seed policy, as well as in drafting a seed law to promote an orderly growth of the seed industry. Among other things, the law should aim at establishing seed standards and rules and regulations that enhance the emergence of a modern seed industry. Given the infant nature of the seed industry, the project should privilege the development of simple and clear rules that can be easily followed by seed producers and users. In addition, the seed law should define institutional responsibilities in regulating the industry. The subcomponent will finance civil works, equipment, and technical support to build the capacity in seed testing and certification. Subcomponent 2.c. Support to seed production and distribution: The subcomponent aims to boost the embryonic seed business (now consisting of a few seed companies) toward a private seed industry. The foundation seed produced by Research will be procured by entrepreneurs who will in turn supply it to their out growers for multiplication and production of certified seeds. There are two possible seed multiplication models, with three or four generations: (i) breeder-foundation-certified seed or (ii) breeder-foundation-registered-certified seed. During preparation it will be decided which model is more suitable for the local conditions. The specific criteria for identifying foundation seed users will be defined, and they will be tied up to the technical and organizational competence in producing quality seed. Protocols for producing quality seeds will be developed by the project, mainly by adapting similar documents prepared in the neighboring countries. The subcomponent will provide training on seed production to prospective seed growers. To this end, the project will provide funds - possibly in the form of vouchers - p and technical support to private seed companies to (i) organize seed multiplication with farmers and their groups; and (ii) procure, bulk, and package the multiplied seeds, after having them tested and certified. o The sub-component will pilot a voucher system to enable the accessing of seeds by vulnerable group. This will ensure access to improved seeds by these groups and guarantee a certain level of demand for seed at the initial stages of project implementation. Details on farmers' eligibility with careful attention to relative vulnerability across the various ethnic groups and modus-operandi of the system will be worked out during project preparation. Component 3. Project Management and Implementation The objective of this component is to allow timely implementation of project activities. The project implementing agency is the Ministry of Agriculture, Forestry, Tourism, Animal Resources, Fisheries, Cooperatives and Rural Development. The capacity of this Ministry is weak, as described in Section C below. The experience under the South Sudan Support to Agriculture and Forestry Development Project, which was implemented during 2008-12, provided important lessons of experience. The outcome was rated moderately unsatisfactory because of "poor results from the planned adaptive research program, poor implementation of M&E and environmental safeguards, the lack of a solid basis for any meaningful analysis of project efficiency, as well as the low prospects for sustainability of outcomes". These shortcomings may have been consequence of two issues: (i) the challenge to implement a development project in a situation which was still under the emergency of recovering from a long period of war, and (ii) the difficulty to develop a proper collaboration between low paid and poorly motivated staff of the Ministry and well paid consultants of the technical assistance. O ) Both issues were later addressed under the Emergency Food Crisis Response Project, which is working with a Project Coordination Unit (PCU) under the Directorate of Agriculture Production and Extension. Through dedicated TA (in Procurement, M&E, Safeguards, and Financial Management) the PCU has gained considerable experience in managing and implementing World Bank projects and is now better placed to manage the implementation challenges. At each level (Federal, State, and County), there will be committees to provide direction and guidance to project implementation. In addition, in line with the overall ISN objective of building the capacity of government agencies in South Sudan to execute their mandate, the proposal is for on the ground project implementation to be carried out by the Country Agricultural Departments (CAD). Due to anticipated capacity constraints the county level, the CADs will be supported in this role by contracted NGO/TA, which could possibly include technical agencies. Details of these implementation arrangements will be finalized during project preparation and will be guided and refined by lessons from previous and ongoing projects. The proposed operation would be financed by an IDA Credit. This would facilitate more Government involvement in project design and implementation. This is mostly positive, even if there is some risk that the Government may not accept dedicating Credit resources to expensive TA. During preparation, the team will look at the option to obtain grant co-financing to finance TA. This component will finance necessary TA and operational costs for the PCU and CADs. The component will also invest to establish an adequate monitoring and evaluation system, including data collection, a baseline study and final evaluation. D. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The Project area has not yet been selected. While the World Bank team would give priority to safer areas with higher levels of poverty combined with strong agricultural potential, the Government is concerned about equity and therefore prefers a broader coverage. The selection of the project area has important implications, therefore during project preparation the Bank team will work with government on striking an appropriate balance in line with the available resources for the project. E. Borrowers Institutional Capacity for Safeguard Policies Overall capacity of the implementing agency is weak. The Implementation Completion Report of the South Sudan Support to Agriculture and Forestry Development Project, which was implemented during 2008-12, states that "Overall, the environmental and social safeguards were not executed as envisaged under the project". However safeguard compliance has significantly improved under the ongoing Southern Sudan Emergency Food Crisis Response Project, whose compliance with safeguard is now rated as satisfactory thanks to hiring a safeguards technical assistance. Indeed an audit revealed that environmental and social safeguards continued to be implemented adequately at the NGO level. F. Environmental and Social Safeguards Specialists on the Team John Bryant Collier (GENDR) Svetlana Khvostova (GENDR) Varalakshmi Vemuru (GSURR) II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment Yes It is expected that the project will have an overall OP/BP 4.01 positive impact on the environment by improving the efficiency of resource utilization, such as yield increase. However some aspect of project activities may present some risks, such as the increased area under cultivation to increase production or water harvesting. Given that less than 4 percent of the total land area is currently cultivated, the expansion of cultivated area does not constitute a concern, unless it is carried out in sensitive or protected areas. Water harvesting points will be small earth/stone ridges to allow the catchment of flood water and are not expected to cause an environmental concern. Crop practices supported by the project are expected to have a positive environmental impact. Examples are improved weeding, crop rotation, particularly when using leguminous crops which fix nitrogen in the soil, the use of crop residues, mulching, reduced soil disturbance, intercropping, agro-forestry, to mitigate soil erosion and maintain soil fertility even without the use of synthetic fertilizers. As the location of the subprojects has not been decided at the time of project preparation, the government will take a framework approach to safeguards. The Environment and Social Management Framework (ESMF) from the Emergency Food Crisis Response Project will be updated to fit the project activities and will be publicly disclosed following consultations with project stakeholders. The ESMF will include screening mechanism for sensitive or protected areas at the subproject level. Natural Habitats OP/BP 4.04 TBD It is not expected that the project will affect natural habitats, but this will be confirmed before appraisal. Forests OP/BP 4.36 No The project is not expected to have any impacts on the health and quality of forests; nor to affect the rights and welfare of people and their level of dependence upon or interaction with forests; and, (the project does not aim to bring about changes in the management, protection, or utilization of natural forests or plantations, whether they are publicly, privately, or communally owned). Pest Management OP 4.09 Yes The project will not finance the purchase or support the use of pesticides. It will rather support the control of pests through seeds of resistant varieties, such as Striga resistant sorghum or Mosaic resistant cassava. Where possible, an IPM will be encouraged and employed. The IPM will be embedded in the ESMF. Physical Cultural Resources TBD It is not expected that the project will have any OP/BP 4.11 archaeological, paleontological, historical, architectural, religious, aesthetic, or other cultural significance. This will be confirmed before appraisal. If by appraisal the team will be certain there are no physical cultural resources, we will not trigger the policy. If PCR is present, the policy will be triggered, and the ESMF needs to discuss the possible impacts and mitigation measures. Indigenous Peoples OP/BP Yes Ethic identity is a strong feature in South Sudan, 4.10 including in rural and agricultural areas. The policy is triggered as analysis by World Bank and other experts confirms that the overwhelming majority of people in the project area are expected to meet the requirements of OP 4.10. Given that agricultural land ownership and agricultural practices are all strongly related to ethic identity and traditions, the project will embed the basic principles of OP 4.10 of a free, prior, and informed consultation leading to broad community support, as part of the implementation arrangements. Indeed elite capture by certain ethnic groups and the relative vulnerability of the minor groups could lead to capture of benefits and potential exclusion from participation and benefits. Therefore the Project will adopt a vulnerability approach to mitigate this risk through carefully defined eligibility criteria for targeting the poorest and mechanisms like vouchers to reach the vulnerable groups. A functioning grievance redress mechanism will also be established. Per the requirements of OP 4.10, no separate IPP is to be prepared. Involuntary Resettlement OP/ No The project is not expected to have any involuntary BP 4.12 resettlement, including impact on access to land that would affect livelihoods. On the contrary, the "strengthening communal land ownership" sub- component will test the feasibility of strengthening communal land rights through the formalization of rights. The PAD will have an annex on land tenure arrangements. Safety of Dams OP/BP 4.37 No No dam or related issues will be addressed under the project. Water harvesting points will be small earth/ stone ridges to allow the catchment of flood water and are not expected to cause any dam safety issues. Projects on International No Since the project will not include irrigation, this Waterways OP/BP 7.50 safeguard will not be triggered. Projects in Disputed Areas OP/ No The project will not be located in or near disputed BP 7.60 areas. III. SAFEGUARD PREPARATION PLAN A. Tentative target date for preparing the PAD Stage ISDS: 12-Nov-2014 B. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timingi should be specified in the PAD-stage ISDS: During project preparation, the Ministry of Agriculture, Forestry, Tourism, Animal Resources, Fisheries, Cooperatives and Rural will hold a set of public consultations, informed by the implementation experience of similar Bank-funded projects and a number of reports and analytical studies in South Sudan. The consultations will be held in a culturally appropriate manner and will include evaluation of potential adverse and positive effects of the project. This will also inform the development of targeting strategy to reach the vulnerable groups. A social assessment will be prepared, consulted upon and disclosed. In addition, the ESMF from the Emergency Food Crisis Response Project will be updated. The updated ESMF will undergo a set of public consultations and will be disclosed in South Sudan and in the Bank InfoShop prior to project appraisal. IV. APPROVALS Task Team Leader(s): Name: Maurizio Guadagni Approved By: Regional Safeguards Name: Alexandra C. Bezeredi (RSA) Date: 31 -Jan-2015 Coordinator: Sector Manager: Name: Tijan M. Sallah (SM) Date: 02-Feb-2015 o 1 Reminder: The Bank's Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons.