FOR OFFICIAL USE ONLY Report No: PPIAF000005 PROJECT PAPER ON A PROPOSED ADDITIONAL GRANT FROM THE INTERNATIONAL DEVELOPMENT ASSOCIATION IN THE AMOUNT OF SDR 72.9 MILLION (US$95 MILLION EQUIVALENT, OF WHICH US$55 MILLION EQUIVALENT FROM THE AFGHANISTAN NATIONAL PERFORMANCE-BASED ALLOCATION AND US$40 MILLION EQUIVALENT FROM THE CRISIS RESPONSE WINDOW) TO THE FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS FOR THE SECOND ADDITIONAL FINANCING FOR THE AFGHANISTAN EMERGENCY FOOD SECURITY PROJECT March 12, 2025 Agriculture and Food Global Practice South Asia 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. The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) CURRENCY EQUIVALENTS (Exchange Rate Effective January 31, 2025) Currency Unit = Afghani (AFN) AFN75.53 = US$1 US$1.30383 = SDR 1 FISCAL YEAR January 1 - December 31 Regional Vice President: Martin Raiser Regional Director: Dina Umali-Deininger Country Director: Faris H. Hadad-Zervos Practice Manager: Gayatri Acharya Task Team Leader (s): Azeb Fissha Mekonnen, Amanullah Alamzai The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) ABBREVIATIONS AND ACRONYMS AF Additional Financing AFN Afghan Afghanis AM Accountability Mechanism ARTF Afghanistan Resilience Trust Fund BDS Business Development Service CGIAR Consultative Group for International Agriculture Research CHS Community Health and Safety CIG Common Interest Group CO2e Carbon Dioxide equivalent EATS Emergency Agriculture and Food Security Project ECA Entry Criteria for Access EFSP Emergency Food Security Project ESCP Environmental and Social Commitment Plan ESIRT Environmental and Social Incident Response Toolkit ESMF Environmental and Social Management Framework ESS Environmental and Social Standard FAO Food and Agriculture Organization of the United Nations FHH Female Headed Households FM Financial Management GRM Grievance Redress Mechanism GRS Grievance Redress Service Ha Hectare(s) IP Implementing Partners IPC Integrated Food Security Phase Classification IRR Internal Rate of Return ITA Interim Taliban Administration IUFR Interim Unaudited Financial Report Kg Kilogram(s) LLL Laser Land Levelers LMP Labor Management Procedures M&E Monitoring and Evaluation MM Millimeter MT Metric ton(s) NDC Nationally Determined Contribution NGO Nongovernmental organization NHLP National Horticulture and Livestock Project NPV Net Present Value OHS Occupational Health and Safety PDO Project Development Objective PSE Private Seed Enterprise PIM Project Implementation Manual PIU Project Implementation Unit SEA/SH Sexual exploitation, abuse and sexual harassment SEP Stakeholder Engagement Plan TPMA Third-Party Monitoring Agent The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) TABLE OF CONTENTS I. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING ......................................................................... 1 II. DESCRIPTION OF ADDITIONAL FINANCING .......................................................................................................... 6 III. KEY RISKS .............................................................................................................................................................. 13 IV. APPRAISAL SUMMARY ......................................................................................................................................... 15 V. WORLD BANK GRIEVANCE REDRESS .................................................................................................................. 21 VI. PROPOSED CHANGES ........................................................................................................................................... 21 VII. DETAILED CHANGE(S) ........................................................................................................................................... 22 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) @#&OPS~Doctype~OPS^dynamics@afaprbasicdata#doctemplate OPERATION INFORMATION BASIC DATA - MAIN Product Information - Emergency Food Security Project (P178280) Operation ID Product/Financing Instrument P178280 Investment Project Financing (IPF) Task Team Leaders Azeb Fissha Mekonnen, Amanullah Alamzai Beneficiary Country/Countries Geographical Identifier Afghanistan Afghanistan Requesting Unit Responsible Unit SACAF (8612) SSAA2 (9246) Approval Date Closing Date 06-Jun-2022 30-Jun-2025 Practice Area (Lead) Approval Fiscal year Agriculture and Food 2022 Environmental and Social Risk Classification (ESRC) Substantial Is there collaboration between Bank and IFC? Bank/IFC Collaboration Joint Project – involving co financing with IFC (loan, Yes equity, budget, other) or staffing Implementing Agency Food and Agriculture Organization (FAO) IMPLEMENTATION MODALITIES – MAIN Situations of Urgent Need of Assistance or Capacity Constraints [✓] Fragile State(s) [ ] Fragile within a non-fragile Country [ ] Small State(s) [ ] Conflict [ ] Responding to Natural or Man-made Disaster Other Situations i The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) [ ] Financial Intermediaries (FI) [ ] Series of Projects (SOP) [ ] Performance-Based Conditions (PBCs) [ ] Contingent Emergency Response Component (CERC) [✓] Alternative Procurement Arrangements (APA) [ ] Hands-on Expanded Implementation Support (HEIS) @#&OPS~Doctype~OPS^dynamics@afaproperationstatus#doctemplate OPERATION STATUS Development Objective (DO) Current Development Objective (Approved as part of Additional Financing package on 23-Feb-2024) To restore production of food security crops for the targeted smallholder farmers. Key Information from Last ISR Operation Ratings NAME IMPLEMENTATION LAST ISR RATINGS 15-Nov-2022 02-Jun-2023 07-Dec-2023 19-Mar-2024 11-Oct-2024 Progress towards ⚫ Satisfactory ⚫ Satisfactory ⚫ Satisfactory ⚫ Satisfactory ⚫ Satisfactory achievement of PDO Overall ⚫ Satisfactory ⚫ Satisfactory ⚫ Satisfactory ⚫ Satisfactory ⚫ Satisfactory Implementation Progress (IP) Overall Risk ⚫ ⚫ ⚫ Substantial ⚫ Substantial ⚫ Substantial Overall ESS ⚫ ⚫ ⚫ ⚫ ⚫ Moderately Performance Satisfactory Financial ⚫ Moderately ⚫ Moderately ⚫ Moderately ⚫ Satisfactory ⚫ Satisfactory Management Satisfactory Satisfactory Satisfactory Project ⚫ Satisfactory ⚫ Satisfactory ⚫ Satisfactory ⚫ Satisfactory ⚫ Satisfactory Management Procurement ⚫ Satisfactory ⚫ Satisfactory ⚫ Satisfactory ⚫ Satisfactory ⚫ Satisfactory Monitoring and ⚫ Satisfactory ⚫ Satisfactory ⚫ Satisfactory ⚫ Satisfactory ⚫ Satisfactory Evaluation Disbursement Summary (in USD million) Source of Funds Net Commitment Disbursed Undisbursed % Disbursed IBRD -- -- -- 0 ii The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) IDA -- -- -- 0 Grants 295.00 265.00 30.00 89.83 @#&OPS~Doctype~OPS^dynamics@afaprprocessing#doctemplate BASIC DATA – ADDITIONAL FINANCING Additional Financing No. 3 Additional Financing Type [✓] Activities are being added to expand the scope of the operation, perhaps in geography or in outputs (Scale-up) The operation has incurred increased costs due to inflation, exchange rate changes, and factors that were not [ ] anticipated at appraisal (Cost-overrun) The operation has experienced shortfalls in co-financing, counterpart financing, or cost recovery that were [ ] anticipated at appraisal but did not materialize. (Financing gap) The design of the operation has changed, and the new designs cost more than the original ones (Change in Project [✓] Design) Expected Approval Date Review Type/Corporate Review Level 17-Apr-2025 Regular Decision Meeting (DM) Will consulting services be required? Is this an Urgent Need or Capacity Constraint request? Yes No IMPLEMENTATION MODALITIES – ADDITIONAL FINANCING Situations of Urgent Need of Assistance or Capacity Constraints [✓] Fragile State(s) [ ] Fragile within a non-fragile Country [ ] Small State(s) [ ] Conflict [ ] Responding to Natural or Man-made Disaster Other Situations [ ] Financial Intermediaries (FI) [ ] Series of Projects (SOP) [ ] Performance-Based Conditions (PBCs) [ ] Contingent Emergency Response Component (CERC) [✓] Alternative Procurement Arrangements (APA) [ ] Hands-on Expanded Implementation Support (HEIS) @#&OPS~Doctype~OPS^dynamics@afaprcostfinancing#doctemplate iii The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) COSTS & FINANCING Summary (Total Financing in US$, Millions) Proposed Last Approved Additional Cancellation Total Total Operation Cost 295.00 115.00 0.00 410.00 Total Financing 295.00 115.00 0.00 410.00 Of which IBRD/IDA 0.00 95.00 0.00 95.00 Financing Gap 0.00 0.00 Financing Details (in US$, Millions) Proposed Source Last Approved Additional Cancellation Total International Development 0.00 95.00 0.00 95.00 Association (IDA) IDA GrantNEW 0.00 95.00 0.00 95.00 Trust Funds 295.00 20.00 0.00 315.00 Afghanistan Resilience 295.00 20.00 0.00 315.00 Trust Fund Total Financing 295.00 115.00 0.00 410.00 IDA Resources (in US$, Millions)- Additional Financing Credit Grant SML Guarantee Total Afghanistan 0.00 95.00 0.00 0.00 95.00 Crisis Response 0.00 40.00 0.00 0.00 40.00 Window (CRW) National Performance- 0.00 55.00 0.00 0.00 55.00 Based Allocations (PBA) iv The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) Total 0.00 95.00 0.00 0.00 95.00 @#&OPS~Doctype~OPS^dynamics@afaprsort#doctemplate SYSTEMATIC OPERATIONS RISK- RATING TOOL (SORT) Last Approved Rating Risk Category Proposed Rating (ISR Seq. 06) Package - 11 Oct 2024 Political and Governance ⚫ High ⚫ High Macroeconomic ⚫ High ⚫ High Sector Strategies and Policies ⚫ Substantial ⚫ Substantial Technical Design of Project or Program ⚫ Moderate ⚫ Moderate Institutional Capacity for ⚫ Substantial ⚫ Substantial Implementation and Sustainability Fiduciary ⚫ Substantial ⚫ Substantial Environment and Social ⚫ Substantial ⚫ Substantial Stakeholders ⚫ Substantial ⚫ Substantial Overall ⚫ Substantial ⚫ Substantial @#&OPS~Doctype~OPS^dynamics@afaprclimate#doctemplate CLIMATE Climate Change and Disaster Screening Has this operation been screened for short-term and long-term climate change and disaster risks? Yes, it has been screened and the results are discussed in the Appraisal Document Where risks exist, have potential resilience-enhancing measures been identified in the appraisal document? Yes Does this operation address specific risks, vulnerabilities, gaps or needs with respect to Climate Change that are identified in the SCD or the CPF? Yes Greenhouse Gas Emissions Accounting and Shadow Price of Carbon Gross Emissions Net Emissions (annual average, Net Emissions (economic lifetime, tCO2e) (economic lifetime, tCO2e/year) tCO2e) -748404.0000000000 -37420.0000000000 2033333.0000000000 Has the operation applied the Shadow Price of Carbon in the Economic Analysis? v The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) Yes POLICY COMPLIANCE Does the operation depart from the CPF in content or in other significant respects? No Does the operation require any waivers from Bank policies? Yes Comments (i) Section III.22 of the Bank Directive, “Investment Project Financing” (as it relates to the application of the Anti-Corruption Guidelines to UN Agencies, and their staff and consultants with respect to IDA or TF financing to FAO;(ii) Section III.2(b)(iv) of the Bank Policy, “Financial Terms and Conditions of World Bank Financing” (“FTC Policy”) (the application of the IDA commitment charge) with respect to IDA financing to FAO; and (iii) Section III.6 of the Bank Policy, “Lending Operations: Choice of Borrower and Contractual Agreements” and Section II.2.b(i) of the FTC Policy (the IDA eligibility criteria) with respect to IDA financing (Performance Based Allocation and Crisis Response Window) to FAO. Has the waiver(s) been endorsed or approved by Bank management? Approved by Management Comments Endorsed by Bank Management for Board Approval @#&OPS~Doctype~OPS^dynamics@afaprteam#doctemplate TEAM Core Team Name Role Specialization ADM Responsible? Azeb Fissha Mekonnen Team Leader Yes Amanullah Alamzai Team Leader No Syed Waseem Abbas Financial Management Yes Kazmi Specialist Rahimullah Wardak Procurement Specialist Yes Faizullah Mohammadi Environmental Specialist Yes Anita Bimunka Takura Environmental Specialist No Tingbani Mohammad Yasin Noori Social Specialist Yes Peter F. B. A. Lafere Social Specialist No Ahmad Shakeeb Safai Counsel No vi The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) Loraine Ronchi Peer Reviewer No Valens Mwumvaneza Peer Reviewer No Francois Onimus Peer Reviewer No Muddassir Shafique Peer Reviewer No Harideep Singh Team Member No Ama Esson Team Member No Zhuo Yu Team Member No John Prakash Badda Team Member No Thuong Thuong Thi Team Member No Nguyen Mohammad Arif Rasuli Team Member E&S No Simon Peter Brooks Team Member Security Specalist No Mir Ahmad Ahmad Team Member No Victoria Esquivel-Korsiak Team Member Gender No Ahmed Shah Ahmadzai Team Member Financial Management No Christine Heumesser Team Member No Ademola Braimoh Team Member No Kiran Afzal Team Member No Husnia Sadat Team Member No Najumuddin Najum Team Member No Olivier Lavinal Team Member No Maryam Noori Team Member No Muhammad Ishaq Zahwal Team Member No Satish Kumar Shivakumar Team Member No vii The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) I. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING 1. This project paper seeks approval for additional financing from the International Development Association (IDA) in the amount of SDR 72.9 million (US$95 million equivalent) for the Second Additional Financing (AF2) of the Afghanistan Emergency Food Security Project (EFSP). The additional financing comprises US$55 million equivalent from the Afghanistan’s National Performance-Based allocation and US$40 million equivalent from the Crisis Response Window. In addition, an amount of US$20 million is made available from the Afghanistan Resilience Trust Fund (ARTF) which was approved by ARTF Management Committee on January 16, 2025. The Parent Project and the First Additional Financing for the EFSP (AF1) were financed by a US$295 million grant from the ARTF. The current Project Development Objective (PDO) is to improve the resilience of the agriculture production system for target beneficiaries. The project has 3 components implemented in all 34 provinces of Afghanistan: (i) Component 1: Restoring Agriculture Production, (ii) Component 2: Provision of Water and Resilience Service, and (iii) Component 3: Implementation Support. The project is implemented by the Food and Agriculture Organization of the United Nations (FAO) with a Project Implementation Unit (PIU) based in Kabul. National and international Non-Governmental Organizations (NGOs) and private sector construction companies are subcontracted by FAO to implement project activities under components 1 and 2. Country context 2. In response to the events of August 15, 2021, in Afghanistan, the World Bank Group (WBG) has found pragmatic ways to provide essential basic services and livelihoods for the Afghan people. The WBG has reached more than 25 million Afghans following a stepwise approach. First, Approach 1.0 (November 2021) provided humanitarian gap financing. Approach 2.0 (March 2022) provided basic services and livelihoods support for critical health, food security, livelihoods and jobs, education, NGO capacity development and water services nation-wide at scale, off-budget and outside of Interim Taliban Administration (ITA) control through United Nations (UN) agencies and international NGOs using the “principled approach” of delivery by and to women adopted by the international community. Both Approaches were financed through the ARTF, with the Global Financing Facility for Women, Children and Adolescents (GFF) joining to support health services. The WBG’s independent third-party monitoring agent verifies all project activities. Approach 3.0 (February 2024) deploys IDA to complement trust fund financing of the basic services and livelihoods projects. The WBG has led aid coordination and mobilized co-financing of these activities with the Asian Development Bank, European Union, and bilateral partners. This has been critical in a situation of multiple global crises and overall declining aid in Afghanistan. The nationwide at- scale design allows projects to respond to crises like the Herat earthquakes and the increased repatriation of Afghan returnees. 3. The international aid response helped maintain core services and livelihoods for the Afghan people at scale and mitigated the humanitarian crisis but will be difficult to sustain in the context of expected aid decline, restrictive ITA policy positions, and a depressed economy. While economic conditions stabilized after the sharp reduction in international aid following the events of August 2021, employment opportunities and incomes remain inadequate amid depressed demand, disruptions to public services, and a nonfunctional banking sector, with little buffer for natural disasters, returnee and refugee flows or other crises. Conditions for Afghans, and prospects for broader international support, have been worsened by the policy positions of the ITA, including harsh restrictions on women and girls. These challenges have been further exacerbated by the promulgation of the Law on Propagation of Virtue and Prevention of Vice, as published in the Official Gazette No. 1452, dated July 31, 2024 (“Morality Law”), in A ugust 2024, which has further Page 1 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) aggravated an already difficult situation. Currently, an estimated 14 million people are acutely food insecure. This makes continued coordination of aid across the humanitarian-development nexus, with a sharp focus on cost-effectiveness and sustaining services and livelihoods, critical. Justification for Second Additional Financing and Sector Context 4. The World Bank engagement in response to the food insecurity crisis since the events of August 2021 has made significant contribution to scaling emergency food production support across the country. Evidence from the recent Integrated Food Security Phase Classification (IPC) report shows marginal improvements in food security since the worst situation following the political transition in 2021. Currently, a third of Afghanistan’s population (14.2 mill ion) are experiencing high levels of acute food insecurity (IPC phase 3 or above) compared with the same period in previous years (18 million in 2022 and 15 million in 2023). These improvements can be attributed to the scale of coordinated food emergency agricultural production assistance, including EFSP’s national wide interventions to stabilize food production. 5. Despite these improvements, food insecurity levels remain high. Afghanistan ranks among the top 5 food insecure countries requiring support to prevent further deterioration of food and nutrition security. Afghanistan has one of the world’s highest rates of stunting in children under five, at 41 percent (UNICEF 2020). The rate of wasting, the extreme manifestation of severe acute malnutrition, in Afghanistan is extremely high: 9.5 percent, one in three adolescent girls suffers from anemia, and only 12 percent of Afghan children aged 6-24 months receive the right variety of food in the quantity needed for their age1. 6. Climate change is expected to increase temperatures, exacerbate drought conditions, and alter precipitation patterns. Afghanistan ranks 4th in terms of climate risk and is considered the most vulnerable country with the least coping capacity.2 The frequency of drought has increased, from an average of once every 3 years over 1986–2012 to once every other year in recent years. The droughts have also become more severe and prolonged, diminishing the productive capacity of the land. Farmers face other climate risks, including lower precipitation, shorter rainy seasons, and a higher incidence of pests and diseases. Climate projections indicate increased temperatures in all parts of the country, of about 0.9 to 2.2 degrees. Winter months are likely to see a greater relative increase in average temperature. Precipitation is expected to remain relatively stable, but unlikely to keep up with the evapotranspiration expected by increased temperatures. Shifts in agroecological zones are possible, with increased potential for multi-cropping opportunities in higher elevations, provided irrigation water is available in sufficient volumes when needed. 7. This increasing trend of climate shocks, including drought and changing precipitation, has further threatened food security by negatively affecting productivity of major crops such as wheat, barley and maize. Increased annual temperature is likely to reduce average wheat yields by 12% during the period of 2025-2100.3 Changing patterns and intensity of precipitation impacts water availability for agriculture production with extremes events (i.e. either water shortage or floods), especially in rainfed areas, given limited water management systems. While irrigation systems will help farmers adapt better to climate change, these also face increasing risks from floods which damage water intakes 1 Afghanistan Building Resilient Food Systems, 2024 unpublished. 2 https://www.unocha.org/news/afghanistan-alarming-effects-climate-change 3 Homayoon Raoufi, Hamidreza Jafari, Wakil Ahmad Sarhadi, Esmail Salehi, 2024, Assessing the impact of climate change on agricultural production in central Afghanistan, Regional Sustainability, Volume 5, Issue 3, https://doi.org/10.1016/j.regsus.2024.100156. Page 2 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) structures. Warming is seen as an opportunity in the northeastern, central and west-central regions, but high temperatures during the growing-period may negatively affect crop production, even under irrigation conditions. This is particularly concerning, considering that these are among the main production zones in the country. 8. Despite constituting 54 percent of Afghanistan's agricultural workforce, women face substantial barriers hindering their full participation and benefits from the sector. Financial inclusion is low, with just 7 percent of Afghan women having access to a bank account4, constraining their ability to invest in agriculture or expand businesses. As a result of ITA restrictions, many women-owned business have temporarily or permanently ceased operations and those under operation function below capacity. ITA restrictions, cultural norms, and a scarcity of female extension agents also restrict women's access to agricultural services, impeding the adoption of climate-resilient technologies. Among pregnant and lactating women, food insecurity has increased since 2021, with about 804,365 of them suffering from acute malnutrition. As of March 2024, WFP data shows that 86 percent of female-headed households are experiencing poor food consumption, which is 34 percentage points higher than that observed in male-headed households. Food insecurity leads to negative coping strategies, disproportionately impacting women. According to UN Women, Afghan women often take on the role of “societal shock absorbers” -- in times of crisis their unpaid work burden in the household increases, women’s food intake decreases, girls are sold into marriage, and the risk of GBV increases. Early marriage, high fertility rates, and GBV reduce opportunities for education and economic participation and adversely affecting women’s health and capacity to engage in productive activities. 5 Mobility restrictions and safety concerns further impede women's access to markets and participation in economic activities. 9. Despite these challenges, the agriculture sector is a key driver of growth and poverty reduction, potentially creating jobs and positively impacting income distribution6. About 70 percent of Afghanistan’s population live in rural areas and depend on agriculture for their livelihoods. As such, improving agricultural productivity can directly increase incomes for majority of the population. Agriculture, as a major contributor to Afghanistan’s GDP (36 percent) and leading export sector during major economic stagnation (food exports increased to $1.25 billion in 2023), can be the engine for economic resilience and stimulate growth in other sectors through increased demand for goods and services. The sector can also provide opportunities to address the food and income needs of women. 10. With Afghanistan grappling with economic challenges and a significant reduction in public services for the agriculture sector, the role of agribusiness in supplying production inputs and services, processing, and distributing food remains more important than ever. A review of the horticulture sector, conducted as part of the World Bank Resilience Programmatic Analytical Work, indicates that the agribusiness sector is better positioned to adapt to the new business environment than other sectors. The Analytical Work finds that Afghanistan’s horticulture sector continues to demonstrate growth, for example, in 2023, it provided 36.5 percent of the country’s total exports, and about 61 percent of agricultural exports for the same year. Despite this progress, the sector remains far below its potential in diversifying production into higher-value commodities, seizing market demand for Afghan agricultural productions in traditional and new emerging and linking farmers with such opportunities. To unlock this potential, catalyzing inclusive-private sector investment in the 4 Global Findex Database, 2023 5 Latest available data shows that 28.7 of women married before age 18, the adolescent birth rate is 62 per 1,000 women aged 15-19, and 34.7% of women aged 15-49 have experienced physical and/or sexual violence by an intimate partner in the last 12 months (UN Women Data Hub). 6 Afghanistan Development Update April 2024. Page 3 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) agriculture sector is essential for several reasons. It is important for improving value addition to agricultural products, creating jobs, increasing the country's export earnings, and reducing the import bill thereby strengthening economic resilience and promoting sustainable growth. 11. In this context, strategic incremental interventions across the food system can support sustainable food security and create economic opportunities for millions of Afghans. The Second Additional Financing is proposed to scale up the project’s impact on food security, by improving food production, leveraging the private sector in agriculture value chains, recognizing the role of the private sector for growth, job creation, increasing incomes for the target beneficiaries. The interventions proposed will support farmers to cope better with increasing climate shocks (i.e. direct or indirect impacts of drought and water shortages), through introducing climate-resilient crop varieties (i.e. drought-resistance); improved climate-smart irrigation systems; connecting producers with markets and strengthening crop diversification as a climate adaptation strategy. Project Performance 12. The project’s progress towards achieving the PDO, and Implementation Progress (IP) continue to be satisfactory. The parent project is compliant with key legal covenants, including audit and financial management reporting requirements. The Environment and Social performance was recently downgraded to Moderately Satisfactory (MS) due to delays in completing actions related to the implementation of Environmental and Social Committement Plan for incident reporting (see Envirnmental and Social section on page 27 for additional details). 13. All project components are being implemented satisfactorily as described below. An additional financing of US$100 million was approved in February 2024, increasing the total project’s financing to US$295 million. This first additional financing revised the project as follows: (i) adjustment to the project development objective to include resilience outcome, (ii) increase the number of project beneficiaries for wheat production covering additional food insecure households, (iii) introduce new activities at small scale to promote production of high value commodities and support for small food processing facilities, (iv) expand scope of irrigation and watershed related activities to include on farm irrigation system development and agroforestry, and (v) extend the closing date to June 30, 2025. Table 1: Summary of project objectives, design and scope: Parent project to proposed Second Additional Financing Parent Project, June Additional Financing 1, Proposed Second Additional Financing 2022 (US$195 M) February 2024 (US$100 M) (US$115 M) PDO Restore production of Improve resilience of agriculture Improve food security through promoting food security crops for production system for target resilience and commercialization of the targeted smallholder beneficiaries agriculture production systems for target farmers beneficiaries Components C1: Restoring Agriculture C1: Restoring Agriculture C1: Restoring Agriculture Production and activities Production. Production - Continue provision of input packages by - Wheat production input - Scaled up distribution of wheat adding an additional 343,000 beneficiary package distribution production input packages to HHs (20% FHHs). The inputs will be for (seeds, fertilizers and new 300,000 beneficiaries wheat, maize, legumes and vegetable advice) - Expanded technical assistance production - Input package of seeds to seed companies to diversify - Add new activity under sub-component and tools for backyard 1.2 to promote availability of climate Page 4 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) kitchen garden to production of seed beyond resilient and high yielding crop varieties support women wheat and production practices in partnership - TA to private seed - Introduced new activity to with the CGIAR companies for seed support capacity for value - Continue technical support for private multiplication and addition for high value seed companies marketing commodities targeting women - Introduce vouchers as a delivery beneficiaries mechanism for input packages to a C2: Provision of Water portion of the new beneficiaries to be and Resilience Services C2: Provision of Water and added Resilience Services C2: Provision of Water and Resilience - Restoring damaged irrigation canals and - Expanded watershed Services drainage systems management interventions. - Continue irrigation systems and - Soil and water - Introduced on-farm climate watershed improvement activities by conservation activities resilient water management covering additional areas - Cash for work through practices C3 (new component): Promote work on soil and water Commercialization of Farmers conservation activities - Support ~ 150 small agribusinesses with matching grants to invest in technologies and value addition facilities - Continue implementation of orchards development and small household- based processing units Beneficiaries 750,000 (20 percent- 1.4 million (20 percent women) 1.8 million (20 percent women) women) 14. Component 1, “Restoring Agriculture Production” aims to support the production of wheat and vegetables responding to emergency food needs that are exacerbated by drought and climate impacts. The project provided wheat production packages, including improved seed, fertilizer, and technical assistance, to 600,000 households, fully achieving the target set under the parent project. Furthermore, under the first additional financing, an additional 300,000 households received wheat packages in the fall of 2024 planting season to scale up the food crisis response in IPC3+ areas. The initial results from post-harvest survey conducted by FAO suggests a 33 percent average increase in productivity among households supported with wheat production packages, exceeding the target of 25 percent. The productivity increase was mainly attributed to the quality of the seeds provided by the project. The project’s technical assistance to Private Seed Enterprises (PSEs) combined with the effective demand it generated, has resulted in a significant increase in domestic certified seed production capacity from 15,000 MT in 2021 to 62,000 MT in 2024. In addition, the project established 723 orchards with high to medium-density planting for early harvest varieties and additional 1,777 will be planted in the spring of 2025. The implementation of the pilot value addition activity is at an early stage with beneficiary selection finalized and procurement of planting material and value addition equipment underway. 15. Component 2, “Provision of Water and Resilience Service” supports irrigation canal rehabilitation, riverbank protection, watershed restoration activities and cash for work targeting vulnerable communities in villages. The project has rehabilitated 775 kilometers of existing irrigation canals, constructed multiple erosion control structures, and upgraded a network of small traditional water storage facilities (Karezes) across all provinces. These interventions have created 6.3 million (against a target of 7.0 million) days of short terms jobs in target communities, of which 503,269 days were worked by female beneficiaries. Small check dams constructed by the project will store an average of 5 cubic meters of water Page 5 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) during each rainfall in the upper Kares area contributing to restoring. Similarly, about 10 million trenches excavated by the project will hold nearly 3.3 million cubic meters of water during each rainfall. These structures slow down the flow, reducing flow rates, thereby refilling aquifers and increasing water levels in Karezes and canals. Evidence through remote sensing analysis in the areas where the project implemented irrigation rehabilitation, riverbank protection and watershed management interventions indicate increased green cover/biomass. 16. Component 3, “Implementation Support” supports the Project Implementation Unit, which is fully functional, project progress reporting is on track and a functional Grievance Redress Mechanisms (GRM) is in place. A Third-Party Monitoring Agency (TPMA) by FAO has been monitoring physical and financial progress. The ARTF MA continues to verify finding of monitoring by FAO’s TPMA. This arrangement will be further improved to ensure effective coordination among the two agencies for effective monitoring of project activities. II. DESCRIPTION OF ADDITIONAL FINANCING 17. The project adopts the global definition of food security as ‘all people having physical, social and economic access to sufficient, safe and nutritious food which meets their dietary requirements and food preferences for an active and healthy life’. Within this framework and aligned with the World Bank Global Challenge Program on Food and Nutrition Security 7, the Second Additional Financing proposes to scale up investments in actions that increase availability/production of food (staple and non-staple nutritious food) and economic opportunities for people to have the means to access or acquire food. As such the project will address ‘availability’ and ‘access’ elements of food security through the proposed Second Additional Financing. To do this, the project will scale up interventions to increase production of food, promote diversification, connect beneficiaries with economic opportunities in agriculture value chains for income generation. The PDO and components will be revised to reflect this approach. The PDO will be revised to “improve food security through promoting resilience and commercialization of agriculture production systems for target beneficiaries”. The project’s updated theory of change is outlined below. End targets for indicators that will be scaled up are extended and new indicators relating to the new activities are added (see results framework for details). Finally, the project’s closing is proposed to be extended to December 31, 2027, to allow sufficient time for the implementation of newly planned activities. 7 https://documents1.worldbank.org/curated/en/099331210042419806/pdf/SECBOS1ebee6070231bd9e135e826a77903.pdf Page 6 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) Figure 1 Theory of Change Revisions to components and activities 18. The current component 1 “Restoring Agriculture Production” title will be revised to “Building Resilience for Food Security”. This component will continue to respond to food security crisis by financing the provision of input packages to support the production of food by farmers in IPC3+ areas 8 . The proposed Second Additional Financing will allocate additional resources to scale up food security crisis response support. The input packages will include drought resistant seeds, fertilizer and technical advice on climate smart agriculture (CSA) practices. In addition to the technical assistance support for private seed enterprises, this component will roll out an input voucher mechanism to promote market-based input supply system between agro-dealers and farmers as well as improve the efficiency of food crisis response support. A subcomponent will be added to component 1 to scale up transformative climate resilient crop varieties with technical support to FAO from the Consultative Group for International Agriculture Research (CGIAR) 9. Component 1 will finance the following activities structured around 2 subcomponents: 19. Subcomponent 1.1: Food crisis response support. This subcomponent will finance: (i) restoration of wheat, maize, legumes, vegetables, and other crop production in selected provinces through: (a) the provisions of improved technologies, 8 The beneficiary selection criteria will include IPC3+ households who are vulnerable to shocks, including climate-related shocks and have 2 jeribs irrigated/4 jeribs of land rainfed wheat. 9 Potential partner CGIAR centers include: CIMMYT, CIP, ICARDA, ICRISAT. Page 7 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) advisory services, and training to vulnerable farming households to promote good agriculture practices and improve crop production management; (b) provision of in-kind input packages containing high yielding and drought resistant seeds, fertilizers, improved hermetic grain storage bags, and organic nutrient material to an additional 343,000 acutely food insecure households (i.e vulnerable farming households), of which 20 percent will be women; and (c) establishment of input voucher system; (ii) provision of backyard gardening packages containing seeds and fertilizers for vegetable production to female-led vulnerable farming households; and (iii) an impact evaluation of the backyard gardening packages provided for female-led vulnerable farming households, as these are key entry points to reach women who face the greatest food insecurity, have poor nutrition, and face increasingly severe mobility restrictions that prevent them from engaging in work outside of the home. The input package will cover high yielding and drought tolerant seed varieties to promote diversification and adaptation to climate change. 20. An input voucher system will be established to distribute wheat seeds to a proportion of the target beneficiaries . The voucher distribution system will be used in areas where private seed enterprises (PSEs) are operating with easy access to farmers. Due to mobility and other restrictions, women farmers will have a choice of receiving inputs through vouchers or the in-kind support delivered at home or via women-only distribution points, regardless of availability of PSEs. The voucher system will cover only the cost of the seeds on a cost sharing basis (50 percent) to the target beneficiaries, while the in- kind input packages will include seeds and fertilizers (which will be covered 100 percent by the project). A total of 135,000 households will be targeted for voucher-based distribution of wheat seeds in 43 districts. FAO will pay seed enterprises that participate in the voucher distribution system the voucher-equivalent amounts redeemed by target beneficiaries. 21. The voucher intervention is informed by successful experiences from previous World Bank financed projects in Afghanistan during the republic time, including the Afghanistan Agricultural Inputs (AAIP) Project, which partnered with several PSEs to reach farmers with improved seed packages on a cost-sharing basis using vouchers. This experience demonstrated that voucher delivery mechanism increases delivery efficiency and ensure linkages between farmers and input providers. A voucher implementation manual will set forth the operational modalities, for beneficiary eligibility criteria, registration, selection of reliable suppliers, capacity building to key delivery participants and M&E arrangements. Development and adoption of the voucher implementation manual, to the Bank’s satisfaction, will be a withdrawal condition under the Project’s relevant legal agreement. 22. Subcomponent 1.2: Promote improved crop varieties and production practices. This sub-component previously titled ‘Enhanced Seed Production’ is revised and will finance technical activities (for farmers, private sector entities, village-based community organizations) and related investments to promote climate resilient crop varieties and provide agronomic advisory services on climate smart agriculture practices. This will be done with technical support from the CGIAR. The collaboration with the CGIAR is a direct implementation of the second pillar of the WBG’s Knowledge Compact on developing partnerships to meet client needs. The following specific activities will be financed under this subcomponent: (i) Introduction of improved and climate-resilient crop varieties and seed value chain development. In collaboration with selected CGIAR centers, the project through FAO’s leadership will support the introduction of breeding lines of various crops (wheat, barley, potato, chickpea, lentil, forage species( perennial sorghum) by: (i) carrying out adaptive testing and farmer participatory trials to assess cultivars and identify the most productive, climate change adaptive, and farmer-preferred varieties to scale up through seed enterprises and farmer groups; (ii) using demonstration plots to: (a) showcase the performance of new varieties in comparison with varieties Page 8 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) available in the local markets (local and imported varieties, where relevant); and (b) generate local evidence of suitable production packages for the new varieties; (iii) facilitating transfer and testing of previously released climate-resilient crop and forage germplasm/varieties from CGIAR gene-banks; and (iv) providing technical assistance to private seed enterprises in planning, on-site support for multiplication, producing, marketing, and certifications of seed production of such varieties through, inter alia: (a) carrying out of an assessment to identify priority needs for production and capacity development; (b) trainings; (c) provision of equipment and early generation seed for seed production and processing; (d) technical inspection and monitoring support for adherence to relevant standards and compliance with national seed regulations; and (e) packaging and marketing materials for enhancing marketing efforts. CGIAR centers will facilitate transfer and testing of new and previously released climate-resilient crop germplasm/varieties from CGIAR gene banks and possibly from the neighboring countries to the Agriculture Research Institute of Afghanistan (ARIA) facilitated by FAO in compliance with national seed regulations. Technical experts from the respective CGIAR’s centers based in the region will be engaged by the FAO to support implementation. (ii) Promotion of agronomic advisory services. Improved, efficient, and agroecologically appropriate technologies that promote both climate mitigation and adaptation benefits, will be introduced and demonstrated to farmers. This includes providing training to farmers, through demonstration plots and farmers field schools, on the use of improved, efficient, and agroecologically appropriate technologies that promote both climate mitigation and adaptation benefits, including, inter alia: conservation agriculture, precision agriculture, and natural resource management-based technologies (such as laser land leveling, mechanized crop establishment, weed control, and harvesting)10. These technologies will be promoted at the community level through demonstration plots, farmers field schools, training of community-based groups in collaboration with NGOs, farmers' groups, and agribusinesses. 23. Component 2: Provision of Water and Resilience Services. This component will finance a scaling up (a continuation of activities from existing project, i.e AF1) of improved off-farm and on-farm water management practices on existing irrigation systems and watershed management interventions with a focus on water conservation interventions in mountainous terrain (rainfed) areas of Afghanistan to address soil erosion and depletion of ground water. In addition, building on the lessons learned from past projects, as a new activity, this component will finance the establishment of high-efficiency irrigation systems using locally produced high efficiency irrigation equipment, which are available in local markets. Cash for work transfers and unconditional cash transfers for women, if women are not allowed to work remain unchanged from the first additional financing of the project. (i) Improve off-farm and on-farm irrigation systems. The project will finance small works for restoration of the irrigation system through both on-farm and off-farm water management interventions along the same canal system. Improvement of the main canal along with the lower tier of the canal systems such as secondary/tertiary (on-farm level) canal systems will be carried out to enhance conveyance efficiency. On-farm level interventions will also be financed to improve water application efficiency to support increased agricultural production and productivity. These measures will help farmers to have better control over water management and reduce water shortages. A total of 65 schemes would be supported covering about 16,800 ha of land. Civil works such as 10These measures, while minimizing the soil disturbance and improving the efficient use of water and fertilizer, can help to improve soil quality, hence soil carbon sequestration, as well as help farmers to better deal with increasing climate-related water stress. Page 9 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) intake/headworks/diversion structures, cross drainage structures (aqueduct, super passage, siphon, road culverts), canal lining at the secondary/tertiary level canal system, improvement of temporary/permanent (nucca pucca) structures, dividers, ponds, flumes, canal bank protection and regulating structures will be carried out. The source of water for the system will be mainly surface water. (ii) Support sustainable land and watershed management interventions. The project will finance plantation of suitable plant species compatible to Agro-climatic conditions to help stabilize watershed slopes, contribute to flood management, and provide opportunities for earning income, including for women. This will include planting of Pine, Olive, Pistachio, Almond, and Judas (Arghawan) trees. The intervention will plant about 500,000 saplings and up to 10,000 kg of seed to cover 2,100 ha in 100 districts or site s across all provinces. Agroforestry users’ groups (including with up to 40 percent women participation) will be established in each of the sites with an umbrella association at the district level. User groups will be responsible for planting and maintaining the plants. One supervisor selected from the community will be deployed for regular monitoring/supervision and watering of the plant saplings in each of the 100 agroforestry sites for a nine-month period, every year during the project implementation period (up to 10 percent of supervisors will be women). As part of this activity, the project will improve water harvesting structures including improvements of upper catchment of Karezes covering an additional 10,000 ha of land. (iii) High efficiency irrigation schemes. The project will finance procuring locally high efficiency irrigation equipment such as pipes, emitters, fertigation units and filters to farmer groups growing high value crops such as Pistachio and Almonds. The facilities will be procured from the local market stimulating demand for agriculture equipment suppliers. This will cover about 100 drip irrigation schemes covering 70 ha of land. Additionally, to further increase irrigation application efficiency, 50 units of Laser Land Levelers (LLL) will be provided to private operators in low altitude plain areas. The beneficiary farmers for the LLL units will be selected based on criteria established in consultation with water user associations. 24. Component 3: Promote commercialization of farmers. This component will finance investments to improve the capacity of small agribusinesses to connect to established commodity supply chains by adopting climate smart production and value addition technologies. The component is structured around two sub-components: 25. Subcomponent 3.1: Matching grants to small agribusinesses to improve productivity and value addition. The subcomponent will finance the provision of matching grants to 150 small agribusinesses (of which 30 percent will be women-owned/led) to invest in acquiring inputs, technical assistance, productive infrastructure and equipment for value addition for the production and processing of high value agriculture commodities. Through the matching grants the project aims to benefit over 15,000 commercially oriented smallholders, of which 20 percent will be women connected with the small agribusiness. Such linkages will assist farmers secure long-term market relationships, increase their productivity via improved access to value chain infrastructures such as storage, processing facilities and business development services. Agriculture supply chains will benefit from a consistent supply of produce while contributing to value addition. Through this approach the project will promote the application of climate-smart agricultural practices to adapt to climate change, build resilience, and increase sustainable agricultural production. Applicants will be required to submit a business plan after passing a pre-screening process that assesses eligibility against the agreed criteria. The business plan must include key business elements such as a business description, market analysis, production and marketing strategies, financial projections, and risk mitigation measures. Furthermore, the subcomponent will finance tailored support to women farmers Page 10 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) to promote their active participation in agricultural value chains. In alignment with the One World Bank Group approach, the project pursues collaboration with IFC to explore joint programming for private sector solutions for food security. The IFC and World Bank technical teams will work together to identify opportunities to connect the project beneficiaries with IFC’s potential investments in agro-processing industries. 26. Small agribusinesses targeted under this scheme will be formally registered entities selected through a transparent and competitive call-for-proposals process based on specific eligibility criteria outlined in the project's matching grant manual that will be a withdrawal condition under the legal agreements. Applicants will be required to clearly demonstrate how the project's support will deliver tangible benefits to farmers within their business catchment areas. These benefits should include improved market access, better pricing for agricultural products, improved product quality and productivity. Additionally, proposals must highlight broader outcomes of the project’s support, such as creating employment opportunities, skill development, and strengthening local supply chains. 27. The design of this activity is informed by consultations with key private sector players in high value agriculture value chains and draws on Afghanistan’s previous successful experiences with similar initiatives and lessons from the World Bank global experience in agribusiness in fragile country context. To cater to the diverse needs of stakeholders across the value chain, the matching grant scheme is proposed under three distinct windows. The detailed eligibility criteria applicable to each window will be elaborated in the matching grant manual as part of the updated PIM. 28. Window 1: Women-Focused: Recognizing that many women-led small agribusinesses in Afghanistan are relatively young and may encounter difficulties in meeting stringent requirements, the project includes a dedicated funding window with relaxed conditions. This window is specifically designed to support women businesses operating at the mid-level of value chains, enabling them to expand and grow. By providing tailored grant opportunities, the project aims to overcome investment barriers faced by women entrepreneurs and promote inclusive economic participation. Eligible business owners under this window will be required to contribute between 10 percent and 30 percent of the sub-project cost. Grant amounts will range from US$7,000 to US$30,000 per sub-project. 29. Window 2: Small Agribusiness for Local Market-Focused: This window will focus on small agribusiness off-takers and processors at the provincial and district levels to encourage investments in critical local infrastructure, such as collection centers, packhouses, and cold storage facilities. These investments aim to strengthen the local agribusiness ecosystem, enhance value addition, and improve the efficiency of supply chains. Beneficiary entrepreneurs will be required to contribute 40 percent of the total project cost, while the program will cover the remaining 60%. The program's financial support will range between US$30,000 and U$ 60,000 per sub-project. 30. Window 3: Export-Oriented Small Agribusinesses Focus: This window supports small agribusinesses participating in the export of agricultural products. By targeting export-oriented businesses, the project aims to increase export revenues, enhance foreign exchange earnings, and contribute to Afghanistan’s economic growth. This initiative focuses on addressing the key challenges faced by exporters by supporting investments in critical infrastructure, advanced technology, and capacity-building measures necessary to meet the stringent quality standards and demands of international markets. The primary objective is to elevate Afghanistan’s high-value crops such as saffron, dried fruits, nuts, and other premium agricultural commodities into globally competitive products. Entrepreneurs are required to contribute 50 percent of the Page 11 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) total project cost, and the program will co-finance the remaining 50 percent through matching grants, with individual grant support ranging from US$60,000 to US$100,000 per sub-project. 31. FAO will engage a Business Development Service (BDS) provider to, among other tasks, support matching grant beneficiaries under each window in identifying viable business opportunities, developing business plans, and delivering tailored technical assistance to enhance their entrepreneurial and operational capacities. Furthermore, the provider will offer hands-on support in areas such as financial management, marketing strategies, and investment readiness to ensure the sustainability and scalability of the supported enterprises. Furthermore, the BDS provider will assist in building linkages with financial institutions and potential investors, helping to unlock financing options and catalyze business growth. The business development services will be provided to matching grant beneficiaries in addition to the matching grants. 32. Minimum criteria for selecting small agribusinesses for accessing matching grants will include evidence of operational linkages with farmers in production or primary processing, including female farmers; evidence of complementary investments to match the project support, integration of climate resilient technologies in the management of production and processing. The matching grants will be implemented in accordance with a project matching grant manual as part of the PIM, which is under preparation. Accordingly, a competitive grant application mechanism will be established through an open call for proposal application process to invite applications from eligible beneficiaries. FAO’s TPMA and ARTF’s MA will provide independent monitoring and evaluation of the matching grants and their implementation. Details of the grant procedure will be provided in the project matching grant manual to be finalized prior to disbursement of matching grants. 33. Subcomponent 3.2: Promote agriculture diversification and value addition. This subcomponent was originally under component 1 and it will now move to component 3 to better align the activities with the outcomes envisaged for promoting high value crop production and competitiveness in related value chains. 34. Component 4: Implementation Support. Additional allocation is proposed under this component to support :(i) the Recipient’s Indirect Costs; (ii) direct project monitoring and supervision costs required to support implementation of the Project; (iii) Project monitoring, evaluation and coordination at the national and regional levels; (iv) mobilization of farmers’ associations and Mirabs to facilitate consultation and community sensitization; and (v) the establishment and maintenance of a grievance redress mechanism. Mobilization and engagement with Community Development Councils will no longer be included under this component. Project Beneficiaries 35. The main project beneficiaries are (i) participating farmers benefiting from access to production inputs and services to improve production and incomes from their participation in agriculture value chains; and (ii) small agribusinesses along the value chain. Primary beneficiaries will be located throughout 34 provinces, including 2 million food insecure households, of which 20 percent will be women reached with agriculture inputs and services to improve production; 150 small agribusinesses benefiting from investments in value addition and 15,000 farmers connected with markets in established agribusiness supply chains. Secondary beneficiaries are (i) 6 million people fed as a result of increased availability of food produced by direct beneficiaries of project assistance and (ii) private sector input and service providers (seed companies, nursery growers, fertilizers dealers, agriculture equipment suppliers) benefiting from access to improved seed varieties promoted the project, participation in the voucher scheme established by the project and technical assistance support for scaling up seed production. Page 12 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) Implementation Arrangement 36. The project will continue to be implemented by FAO, maintaining current institutional arrangements. FAO will contract NGOs, CGIAR agencies and private sector service providers to support implementation of activities and deliver services to beneficiaries. Detailed implementation arrangements will be elaborated in the updated PIM. 37. The current Entry Criteria for Access (ECA) will continue to apply under the additional financing with slight modification to the existing description of the ECA related to female beneficiaries to be aligned with the current design of the project. The two ECAs are: (i) female beneficiaries are not restricted from participating in project activities11; and (ii) there is no restriction on provision of support to project beneficiaries according to the project targeting criteria (geographic and IPC). This is to ensure that the project facilitates the participation of women in project activities and selection of beneficiaries is carried out as per the project’s targeting and selection criteria. III. KEY RISKS 38. The overall residual risk rating is maintained as Substantial. Risks deemed High and Substantial are summarized below. 39. Political and Governance Risks (High): Key risks continue to relate to the ITA, who may not allow access to areas and systems; women to participate in project activities; NGO, and UN female staff to work in offices and the field; interfere with project activities; and impose pressure on selecting project beneficiaries and sites that may not be aligned with the project selection criteria. These risks are intensifying due to increased enforcement of the Morality Law, which entails significant restrictions on the Afghan population, particularly women’s mobility and voice. To mitigate these risks, the implementing agency will continue to monitor the impact of the Morality Law on operations, engage proactively with the respective ITA authorities through regular communications, frequent technical discussions throughout the implementation along with strong involvement of community representatives wherever applicable. The UN system is closely monitoring the implementation and impacts of the Morality Law. In addition to this, the ARTF MA will also monitor the ECA to minimize risk of interference and obstruction of the principled approach (“for women, by women”) along with the regular verification of implementation progress that would assist in taking corrective actions and resolving complaints in a timely manner. 40. Macroeconomic (High): Afghanistan’s open economy is heavily reliant on foreign aid, international trade, and imports of essential goods such as electricity, fuel, and wheat, which leaves it highly vulnerable to external shocks with substantial fiscal and balance of payments repercussions. Since the ITA assumed power in August 2021, financial isolation and a lack of international recognition have restricted access to foreign aid, investment, and trade, stalling economic recovery. Further cuts in foreign aid would shrink economic activity by depressing already low aggregate demand, reducing imports due to diminished foreign exchange availability, and negatively affecting customs revenue—ultimately limiting funds for social services like education and health. Additionally, a high current account deficit depletes foreign reserves, and limited financial options hinder the central bank’s capacity to stabilize the currency, increasing the risks of inflation and 11 The previous ECA was - ‘female beneficiaries are not restricted from obtaining the backyard vegetable cultivation packages or from participating in short term employment opportunities’. Page 13 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) depreciation. With the ITA primarily dependent on customs duties and non-tax revenues, falling tax revenue complicates efforts to balance the budget. The agriculture sector, which sustains 40 percent of the population, is especially vulnerable to climate change and weather-related shocks, intensifying poverty, and food insecurity. To mitigate these challenges, the United Nations Assistance Mission to Afghanistan (UNAMA) is importing physical cash to facilitate payments for project activities and service provider payments, and contingency funding is included in the project budget. The risk of currency devaluation despite the recent appreciation of the Afghani (AFN) is mitigated through ongoing implementation support and supervision mission discussions on the impact of currency fluctuations, and ongoing discussions as needed, to identify and enact joint actions to mitigate adverse effects on project implementation. 41. Sector Strategies and Policies (Substantial): Lack of coherent, predictable sector policy and strategy is a key risk. A lack of functioning state institutions critical to the functioning of the agriculture and food system hinder sustainable development and implementation of agriculture and food system policies and strategies to provide adequate service delivery. To mitigate this risk, the project promotes rebuilding the capacity of the agriculture and food system at the community level and fostering private sector participation. 42. Institutional Capacity for Implementation (Substantial). FAO has been successful in implementing the first two phases of the project; however, this additional financing introduces relatively complex set of interventions aimed at improving resilience and agriculture value chains, which makes FAO’s capacity for implementing these new activities a key risk. This risk will be mitigated by the expanding partnership with the CGIAR, the private sector through matching grants for agribusinesses and the voucher mechanism to support delivery of the interventions. Third-party monitoring will continue with the ARTF Monitoring Agent and FAO’s TPMA. The personal data protection safeguarding arrangements agreed for the parent project will be maintained to mitigate the risk of use of personal data. 43. Fiduciary (Substantial): The key fiduciary risks include inclusion and distribution to ineligible beneficiaries, exclusion of eligible beneficiaries for various project interventions, management of matching grants and voucher mechanisms including fiduciary aspects, and effective financial monitoring. The proposed mitigation measure includes the development and implementation of the project implementation manual providing an overall control framework. Improved monitoring by FAO, FAO hired TPMA and the validation of monitoring by ARTF MA will be put in place to ensure compliance with the PIM and FAOs manuals and SOPs (Manual Sections 703, 704 SOPs for cash transfer in Cash for Work programs). The other risk is procurement conducted by the IPs. To mitigate the risk, FAO will provide a list of contracts completed by the IPs, and the FAO TPMA and ARTF MA will conduct the review by randomly selected contracts. 44. Environmental and Social (Substantial): Considering the potential environmental and social risks and impacts, the capacity of IPs, and country context, the ES risks are retained as substantial. The Second Additional Financing entails specific risks related to environment and OHS including but not limited to (i) risk of fatal incidents and serious injuries; (ii) Occupational, Health and Safety (OHS) risk due to labor-intensive activities, risks as a result of poor handling of agriculture inputs, such as agrochemicals and farm implements (storage processing, post-harvest handling); (iii) risk of water pollution as a result of runoff, sedimentation of nearby water bodies, and soil compaction as a result of use of farm machinery in land preparation; (iv) health and safety issues associated with the safe use and handling of agrochemicals are also envisaged; and (v) security risk management at the project level remains a priority as engagement of various entities not covered by the UN security protocols further heightens human security risk. Key social risks include (i) social inequalities, exclusion, and discrimination of certain categories of people, such as vulnerable and marginalized groups; (ii) forced and child labor; Page 14 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) (iii) community health and safety (CHS), risks and exposure to infectious diseases for project workers; and (iv) minor labor influx affecting community safety, including sexual exploitation, abuse, and sexual harassment (SEA/SH) risks. The SEA/SH risk for this project is Substantial. Finally, the recently issued Morality Law potentially presents additional social risks for women and girls, both in terms of employing women on the project and reaching female beneficiaries. 45. Stakeholders (Substantial): The main risks relate to ITA interference that may undermine implementation of project activities and the challenging context for the grievance mechanism to handle grievances and complaints in a timely manner. To mitigate such risks, regular technical communications with the national and local authorities will be maintained to minimize opposition to project activities and objectives. The project will provide resources to deliver robust grievance handling systems, which will be monitored regularly. FAO has revised and updated the Stakeholder Engagement Plan (SEP) which was developed under the parent project and updated during the AF1. The SEP lays out the plan for meaningful consultations and engagement with all stakeholders throughout the project lifecycle. The SEP describes the strategy and specific methods of engagement that would facilitate effective participation of the different affected groups, including women and girls. The key stakeholders under the parent and AF include river basin authorities, local line departments, private sector agribusinesses community representative groups, NGOs and smallholder farmers. 46. Other climate and personal data related (Substantial): Afghanistan is subject to floods, flood-induced landslides, earthquakes, extreme heat, and harsh winters. These risks have a direct impact on project beneficiaries and the agriculture sector at large. The project includes several interventions that support beneficiaries to cope with such risks and improve their adaptation capacity. The personal data protection safeguarding arrangements agreed for the parent project will be maintained under the AF2 to mitigate the risks associated with using personal data. IV. APPRAISAL SUMMARY A. Economic and Financial 47. The economic and financial viability of the project remains valid considering the resilience, food security and social benefits critical to the long-term sustainability of the project impact. The implementation of AF2 is projected to increase the availability of staple foods, particularly wheat, contributing to a reduction in food inflation. According to the World Bank's Afghanistan Economic Monitor, headline inflation as of May 2024 was reported at -7.5 percent year-on-year, with food inflation at -11.5 percent. These trends suggest that increased domestic food production under AF2 could further stabilize food prices. Additionally, the provision of high-quality, certified seeds for wheat, legumes, cereals, and vegetables is expected to improve agricultural productivity and foster crop diversification, contributing to long-term resilience. 48. Financial Analysis indicates that AF2 will achieve a Financial Internal Rate of Return (FIRR) of 14.7 percent, supported by projected productivity gains from climate-resilient crops and reduced input costs through the proposed voucher-based input distribution system. The anticipated decline in international wheat prices poses a challenge; however, diversification into high-value crops is expected to sustain favorable returns. 49. The Economic Internal Rate of Return (EIRR) considering shadow pricing is estimated at 25.6 percent. The project brings additional broader economic benefits, including improved food security, reduced malnutrition, job creation, and resilience against climate risks. Investments in sustainable practices and resilient infrastructure are key drivers of these anticipated gains. Page 15 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) 50. Using a discount rate of 10 percent, the financial NPV of AF2 is projected at US$4 million, while the NPV of the economic return at 5 percent discounting is projected at US$19.8 million indicating that the long-term economic and social benefits of the project could outweigh its costs. Under a conservative scenario where crop yields achieve only a 20 percent increase and wheat prices remain low, the FIRR could decrease to 10 percent, while the EIRR remains favorable at 15 percent. 51. The Second Additional Financing is projected to improve cultivation of commercial crops in 92,600 hectares, resulting in an estimated annual increase of 57,800 metric tons in food production every year excluding backyard vegetable for nutrition enhancement. This represents a 1.5 percent growth in domestic supply and a 2 percent reduction in reliance on imports every year. In addition to that, the Second Additional Financing is projected to restore 12,000 hectares of degraded land through watershed management and implementation of water conservation systems, with high-efficiency irrigation systems expected to increase productivity in arid areas by 12–15 percent. Through commercialization efforts under component 3, the Second Additional Financing aims to improve incomes for farmers and agribusinesses by an average of 15 percent. The voucher-based system is expected to reduce input costs by 5–10 percent, benefiting approximately 135,000 households. Investments in 90 irrigation schemes and 60 high-efficiency drip irrigation systems are projected to stabilize production across 19,800 hectares, reducing variability by 10–15 percent and enhancing resilience to droughts. 52. In line with the World Bank’s corporate guidelines, an analysis was conducted using the Ex-Ante Carbon-balance tool to assess the Second Additional Financing net carbon balance. It shows that the project results in negative net greenhouse gas emissions, with a balance of -748,404 tons of carbon dioxide equivalent (tCO2eq) over the project lifespan (-37,420 tCO2eq per year). The emission reductions and removal are obtained from the changes in the cultivation practices (e.g. reduced tillage, reduced synthetic fertilizers), and land use change (watershed management, agroforestry on watershed land, and orchards). B. Technical 53. The project pursues a technically sound food security support strategy, backed by global best practices in responding to food crises, particularly in post-conflict situations characterized by high institutional and social fragility. The proposed interventions are aligned with the Bank’s Fragility, Conflict, and Violence (FCV) strategy and the activities draw on the Bank’s experience in Afghanistan before and after the August 2021 crisis, as well as in other similar FCV situations. These interventions have been further validated through stakeholder consultations with key actors. The proposed interventions are guided by a realistic approach, considering the current operating context, implementation capacity limitations, and resource constraints. The project introduces innovations aimed at providing greater sustainability to food security. In addition to expanding partnerships with FAO, the project is deploying new partnerships with the private sector and CGIAR institutions to enhance implementation efficacy. Components 1 and 2 build upon lessons from effective solutions to improving the resilience of food systems to shocks. This includes investing in climate resilience, ensuring access to agricultural inputs for the next season's production to prevent worsening cycles of food shortages, promoting the production of nutritious food, improving technology availability for farmers, rehabilitating irrigation schemes, and closing the gender gap in access to productive assets. 54. Component 3 recognizes the role of the private sector as a source of economic resilience and a provider of essential production inputs and services during crises. This component draws on the project's success in supporting seed enterprises to sustain their operations and ensure the availability of wheat seeds locally during critical years of food crisis. In Afghanistan, as in many other similar FCV situations, agriculture accounts for the largest share of total employment. In Page 16 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) such contexts, providing direct financing to value chain actors is a proven mechanism to facilitate connecting farmers with markets for income and job opportunities to acquire the means to access food as well as contribute to broader growth from value added agriculture. The proposed matching grant mechanism has been assessed to be appropriate and consultations with agribusinesses and key players confirm its feasibility. Value chain actors face significant challenges in accessing commercial financing to invest in processing and sourcing high quality raw materials from farmers. The proposed matching grant is considered suitable instrument to bridge this financing gap while stimulating additional private sector investment and facilitate connecting farmers with supply chains. The design of the matching grant draws upon previous successful experience in increasing investments, particularly in post-production segments of crop and livestock value chains. Grants provided to the value chain actors by the World Bank funded NHLP project, for example, improved value addition in certain crops, such as raisins, where now groups now have improved production facilities and actors benefit from competitive prices both domestically and internationally. Building on these lessons, the project adopts a targeted approach for the matching grants. Recipients will be selected through a competitive process, with proposals evaluated based a predefined criteria to be detailed in a grant manual. 55. Paris Alignment. The operation is aligned with the goals of the Paris Agreement on both mitigation and adaptation and resilience. Assessment and reduction of adaptation risks: while there are various climate risks in the country, increased temperature, drought, flood, changing frequency and intensity precipitation are identified as the main climate and disaster risks that likely to affect project. Project beneficiaries are either exposed to these risks directly (e.g. reduction of wheat and maize yield, which are the major crops in Afghanistan, due to drought and increased temperature) or indirectly through impacts on other system (e.g. water availability for agriculture production, soil erosion). The project will manage these climate risks by supporting farmers who are vulnerable to shocks to cope with yield loss (i.e. with input package provision that increase their productivity) due to increasing risks of climate change as short-term response and focusing on the introduction of drought- and heat-tolerant crop varieties to build resilience for them as long-term response under Component 1. Furthermore, to address the increasing risks that climate change poses agriculture through impacts on water availability (either related to drought or floods events), the project will also finance various activities that improve irrigation system that help farmers to better control, increase storage and optimize their use of water for climate resilient production under Component 2. This is also aligned with the adaptation measures identified under Afghanistan’s First Nationally Determined Contribution (NDC) submitted in 2016, which is “increasing irrigated agricultural land to 3.14 M -ha, through restoration and development of Afghanistan’s irrigation systems”. Under Component 3, in terms of adaptation, infrastructure design and management will involve retrofitting processing facilities with protective features and introducing reinforcements to increase protection from extreme weather events, such as floods and high winds. Additionally, the project will invest in improved storage solutions, including metal silos, water-tight containers, hermetically sealed bags, and portable storage structures that can be relocated in case of floods. Assessment and reduction of mitigation risks: Afghanistan is one of the lowest greenhouse gas emitters globally. The proposed AF operation presents no material impact on greenhouse gas emissions. While it does not finance any emission-intensive activities, the project contributes to improved carbon sequestration through improving soil quality with various improved agriculture practices and techniques promoted under Component 1, as well as plantation and agroforestry activities under Component 2. Under Component 3, the project will invest in GHG-efficient systems by incorporating renewable energy sources, such as solar or wind energy, to power cooling and refrigeration systems. Additionally, Cold storage and refrigeration technologies will help reduce food loss and waste and the associated emissions. Overall, the project activities Page 17 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) will contribute to climate-smart agricultural practices, which are included in the Universally Aligned list of the World Bank Paris Alignment Methods – Agriculture and Food Sector Tool Kit. 56. Maximizing Finance for Development (MFD). The Project is aligned with the World Bank MFD approach, and private investment generated through the project is counted towards Private Capital Enabling (PCE). Components 1 and 3 are verified MFD enabling. For example, Component 1 supports over 100 private seed companies in identifying and expanding marketing opportunities beyond institutional buyers, with the goal of fostering a competitive, market-driven seed system. Component 3 provides technical support and incentives for Agri-SMEs to address critical investment gaps along key value chains, prioritizing investments that strengthen processing, packaging, storage, and distribution infrastructure. Component 3, specifically, has PCE potential, largely through matching grants provided to the value chain actors, with progress to be monitored through non-monetary indicators, including the “Number of small agribusinesses investing in enhanced production and value addition through the project’s support”, which captures progress at the PDO level. C. Financial Management 57. The FM arrangements will largely follow the same approach as the parent project, with minor changes to accommodate the two sources of financing from ARTF and IDA, as well as new activities. The overall financial management arrangements will be governed by the Financial Management Framework Agreement (FMFA) between the World Bank and UN agencies. The FMFA provides the basis for acceptance of single audit principle where the audit requirement is fulfilled by the UN agency through the Bank's review of the agency's overall external audit. The existing FM staff in FAO Project Management Unit (PIU) will continue to manage the day-to-day financial management of the entire project. The FAO will prepare the project budget, detailing the activities and contracts to be financed by the ARTF and IDA. Two separate project entity accounts will be created in the Field Program Management Information System to separately enter the budget and track, record, and report the project-related receipts and payments under both ARTF and IDA. Financing will be on parallel basis with contracts tied to each source of financing. The financial reporting templates will be modified and agreed upon with the FAO for Second Additional Financing. The project oversight and monitoring arrangement will remain unchanged, including the FAO hired Third-party monitoring and its validation by the Bank hired third-party monitoring agent. The ARTF MA arrangements will remain the same including the reporting frequency, however, the scope will be expanded to include the validation of voucher and matching grants related activities. 58. Disbursement from the WB to FAO will be report-based, consistent with the approach used in the parent project. FAO will submit a quarterly Interim Unaudited Financial Report (IUFR) within 45 days of the end of each quarter to liquidate the last advance and request an additional advance for the next six months. The WB will disburse funds to FAO corporate account, and it will be FAO’s responsibility to transfer the funds into Afghanistan. Advances will be released to FAO corporate account based on the six-month forecast and documentation will be made based on the actual expenditures. The matching grant expenditure will be documented upon the submission of utilization report by the beneficiaries to FAO. Additionally, FAO will use the Standard operating Procedures (SOPs) for Unconditional Cash Transfers and Cash for Work Transfers. The SOPs outline the use of Financial Services Provider (FSP)/Bank to transfer cash to eligible beneficiaries, with FSPs being paid upon verification of successful payment transfers. 59. The distribution of input packages through the voucher mechanism and the project interventions through the matching grants will follow the project implementation manual that are aligned with FAO’s Manual Sections 704 (Vouchers) and 703 (Beneficiary Grants) respectively. Both manual sections cover an overall accountability framework, policies, rules, and Page 18 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) procedures for the implementation of vouchers and beneficiary grant interventions. Funds flow from World Bank to FAO will follow the same arrangements as the release of funds based on the forecasted total value of vouchers schemes and match grants contracts, however, the documentation with the Bank will be based on the redemption of vouchers by beneficiary and subsequent payment by FAO to supplier upon verification for voucher related activities. For matching grants, the documentation will be based on the utilization of sub-grants by beneficiaries. The IUFR will include two separate expenditures sub-categories for voucher and matching grant related expenditures which will be supported by the detailed breakdown in annex to IUFR. D. Procurement 60. There are no changes to the procurement arrangement. The same APA arrangement (as approved by the World Bank Chief Procurement Officer on December 19, 2024) will continue under this additional financing. FAO has prepared a procurement plan for the proposed activities and the Project Procurement Strategy for Development will be updated to cover new activities. 61. Procurement Performance. The procurement performance under parent and first additional financing is Satisfactory. The project has managed to award contacts among others for the most critical activities in the procurement plan, i.e., G-1 Certified Wheat Seeds with transportation, G-2 Diammonium Phosphate Fertilizer, and G-3 Urea Fertilizer with transportation with a total contract value of US$ 33,955,174. The total contract value of the contracts awarded for work is US$ 10,991,910. The project awarded contracts for NCS-1, NCS-2, and NCS-3 with a total value of USD 18,462,730. In summary, the project managed to award contracts worth US$ 67,271,635 out of the total cost of US$ 78,747,480 agreed in the procurement plan, which is equal to 85 percent of the total value. 62. The residual procurement risk remains Moderate. The project implementation manual outlines procurement arrangements for conducting procurement by the Project IPs. Additionally, under the guidance of FAO’s International Procurement Officer, the PIU team has carried out capacity-building and awareness sessions for the relevant IP personnel, including procurement staff. The PIU will continue to facilitate regular capacity-building sessions for IPs' procurement teams. Furthermore, the FAO-contracted TPMA and the ARTF-MA will review the procurement processes followed by IPs to ensure that awarded contracts adhere to the agreed manual and core procurement principles, including ensuring that the aggregate value of procurement conducted by the IPs does not exceed the agreed threshold of 10 percent of the total contract value awarded to the individual IPs. E. Legal Operational Policies Triggered? Projects on International Waterways OP 7.50 Yes Projects in Disputed Areas OP 7.60 No 63. The OP 7.50 is applicable because investments concern the use of international waterways Afghanistan shares with its neighboring countries. Policy relevant investments are limited to the rehabilitation of existing schemes, as under the original Project, and will not adversely affect the quantity or quality of the flow of water to other riparian countries. Page 19 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) Therefore, this Additional Financing falls under the scope of the exception to the notification requirement which was approved for the original project on March 15, 2022. F. Environmental & Social 64. The existing SEP and ESCP have been updated to reflect the new Second Additional Financing activities and were disclosed by the recipient (FAO) and World Bank on December 27 and December 29, 2024, respectively12. In addition, FAO has updated the Environmental and Social Management Framework (ESMF) and Labor Management Plan (LMP). The updated Pest Management Plan (PMP) and Security Management Plan, which will be disclosed, as necessary. The FAO pest and pesticide management guidelines are integrated into the PMP and will be used to ensure proper measures are implemented for safe storage, handling, and use of conditioners and treatment of seeds to mitigate any potential risks to farmers or community health and safety. FAO will update the SEA/SH and GBV Action Plan before the commencement of activities as agreed in the ESCP. FAO will include qualified staff and resources to support management of ESHS of the project. The Implementation Partners (IPs), NGOs and contractors will continue to be engaged by FAO to implement project activities and work closely work with local communities and farmers. The World Bank Monitoring Agent will continue to monitor and report on implementation and compliance with the Environmental and Social requirements. 65. Grievance Redress Mechanisms (GRM): FAO has a GRM in place, yet necessary actions related to public outreach and dissemination of GRM information, and the capacity of the IPs require attention. The FAO GRM comprises three-tiered Project level, Regional Level, and National Level (GRM). FAO has established different channels to receive grievances under the GRM, and divided into two: reactive and proactive channels, which include Awaaz toll-free hotline, Telephone Hotline, Suggestion Boxes, FAOAF Call Centre, GRM focal points, and Focus Group Discussion. Beneficiaries can access GRM through multiple grievance uptake channels, such as a dedicated hotlines, and Awaaz Afghanistan. FAO reported a total of 221 (parent 117 and AF1: 104) submissions of feedback and complaints during January-September 2024. Of all cases, 7 were made registered by female beneficiaries, and the cases are now closedThe FAO GRM is equipped to handle cases of SEA/SH using a survivor-centered approach. G. Gender 66. Aligned with the World Bank Group gender strategy and building on the gains made in the parent project, the Second Additional Financing will continue to address critical gender gaps in women’s access to agricultural inputs and food consumption, particularly for FHHs. It will additionally improve functioning of women-owned agribusinesses and access to markets for female smallholder farmers through new interventions. The project will ensure that 100 percent of backyard gardening packages go to FHHs, with a focus on widows, women with disabilities, and those from marginalized groups lacking male support, to improve their food security. Overall, at least 20 percent of all agricultural input packages (both wheat and vegetable/legumes) will be allocated to women farmers. The project will also allocate 30 percent of grants 12FAO: https://www.fao.org/environmental-social-safeguards/project-detail/emergency-food-security-project/en WB:ESCP https://documentsinternal.worldbank.org/search/34441848 SEP https://documentsinternal.worldbank.org/search/34441870 ESRS https://documentsinternal.worldbank.org/search/34441849 Page 20 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) to women-owned/led agriculture MSMEs and will enhance access to markets for women smallholder farmers supported under the project. The project will track the results by measuring: the number of Female Headed Households benefiting from support for production of higher nutrition value vegetables and legumes (225,000); women smallholder farmers reporting enhanced access to markets due to project interventions (20 percent of the total smallholder farmers); and share of project-supported agriculture MSMEs investing in enhanced production and value addition that are women-owned (30 percent). H. Citizen Engagement 67. The Second Additional Financing will expand on FAO current citizen engagement and accountability efforts initiated under AF1. These include: (a) consultations to improve farmers access to inputs to increase productivity; (b) GRMs that will also collect and process feedback; and (c) promote participation of women in economic opportunities in agriculture value chains. In addition to GRM channels, Awaaz-Afghanistan is also available for beneficiaries to raise their concerns and feedback. FAO’s GRM has a standardized, safe, and confidential system to register cases which allows periodical analysis for action and resolution of grievances. The results framework of the Second Additional Financing includes a citizen engagement indicator (beneficiaries’ satisfaction) with action to measure satisfaction among beneficiaries/farmers. The updated GRM manual will provide detail on satisfaction survey to be conducted among beneficiaries/farmers, including women in agriculture value chains. FAO’s TPMA and ARTF’s MA will provide independent monitoring and evaluation of the grants and their implementation. V. WORLD BANK GRIEVANCE REDRESS Grievance Redress: Communities and individuals who believe that they are adversely affected by a project supported by the World Bank may submit complaints to existing project-level grievance mechanisms or the Bank’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project affected communities and individuals may submit their complaint to the Bank’s independent Accountability Mechanism (AM). The AM houses the Inspection Panel, which determines whether harm occurred, or could occur, as a result of Bank non- compliance with its policies and procedures, and the Dispute Resolution Service, which provides communities and borrowers with the opportunity to address complaints through dispute resolution. Complaints may be submitted to the AM at any time after concerns have been brought directly to the attention of Bank Management and after Management has been given an opportunity to respond. For information on how to submit complaints to the Bank’s Grievance Redress Service (GRS), visit http://www.worldbank.org/GRS. For information on how to submit complaints to the Bank’s Accountability Mechanism, visit https://accountability.worldbank.org. @#&OPS~Doctype~OPS^dynamics@afaprproposedchanges#doctemplate Summary changes VI. PROPOSED CHANGES Operation Information Proposed Changes Operation Information Proposed Changes Development Objective Yes Loan Closing Date Extension Yes Summary Description Yes Implementation Schedule Yes (Operation Abstract) Page 21 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) Legal Operational Policies Yes Loan Cancellations No MFD/PCE Yes Reallocations No Results Yes Financial Management No Legal Covenants Yes Procurement No Conditions Yes Institutional Arrangement No Disbursements Estimates Yes Implementation Modalities No Additional Regional Yes Institutions Components Yes Implementation Modalities No Disbursements Arrangements No Clients No Beneficiary Countries No @#&OPS~Doctype~OPS^dynamics@afaprdetailedchanges#doctemplate VII. DETAILED CHANGE(S) DEVELOPMENT OBJECTIVE (DO) Development Objective Development Objective (Approved as part of Approval Package on 02-Jun-2022) To restore production of food security crops for the targeted smallholder farmers. Current Development Objective (Approved as part of Additional Financing Package Seq No 2 on 23-Feb-2024) To restore production of food security crops for the targeted smallholder farmers. Proposed New Development Objective Improve food security through promoting resilience and commercialization of agriculture production systems for target beneficiaries. Operation Abstract: Summary Description of Proposed Operation Operation Abstract (Approved as part of Approval Package on 02-Jun-2022) The availability, access, and the stability of food supply have become critically compromised since August 2021. From November 2021 to March 2022, an estimated 55 percent of the population (22.8 million people) are facing a major food security crisis, classified under the Integrated Food Security Phase Classification (IPC) Phase 3 (IPC3) and above. Out of this, 8.7 million people across 22 out of 34 provinces, face food emergency - IPC Phase 4 conditions. About 3.9 Page 22 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) million people were estimated to require malnutrition treatment services in 2021, including 1 million children under five with severe acute malnutrition, 2.2 million children under five with moderate acute malnutrition, and 700,000 pregnant and lactating women with acute malnutrition. Income opportunities are limited. The World Food Program (WFP) monitoring from the end of December 2021 revealed an average unskilled daily labor rate of just AFN 279 (less than US$3) per day, and that labor availability for those seeking it has sunk to just 1.3 days per week on average. In response to the crisis, the international community is providing humanitarian assistance, including through food distribution and the creation of cash-for-work schemes. The Bank is seeking to develop a proposed Food Security operation, that complements these ongoing humanitarian efforts by supporting recovery of the production base and creating short term income opportunities. In recovering the sector, there are also opportunities to “build back better” and create conditions for a resilient and inclusive sector able to deliver sustained growth, jobs, and livelihood security, while providing a source for safe and nutritious food and contribute to wider economic growth. The project will be financed by an ARTF grant in the amount of US$195 million using an Investment Project Financing (IPF) instrument and will be implemented for 24 months. The project is structured around the following three components: Component 1: Restoring Agriculture Production (US$106 million) to finance - (i) provision of quality production packages and technical assistance to restart crop production targeting about 300,000 HHs; (ii) the provision of input packages seeds, basic tools for backyard kitchen gardening and technical training on improved and climate smart production practices and basic nutrition and food hygiene targeting 150,000 female headed households and (iii) technical assistance support to private sector seed companies in planning, on-site support for multiplication, marketing and certification of seeds. Component 2: Provision of Water and Resilience Services (US$62 million) to finance rehabilitation and improvement of around 130,00 hectares of irrigation schemes and watershed areas in all 34 provinces of the country. This will ensure better access to irrigation water and improved soil and water conservation. These activities will also generate short- term employment opportunities of 6.250 million person-days for unskilled labor, including opportunities specifically dedicated for female unskilled laborers including gabion weaving. Component 3: Implementation support (US$27 million) to finance (i) indirect costs; (ii) direct project monitoring and supervision costs required to support implementation of the Project; (iii) project monitoring, evaluation, and Page 23 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) coordination at the national and regional levels; (iv) mobilization of farmers’ associations, mirabs, and community development councils to facilitate consultation and community sensitization; and (iv) establishment and maintenance of a grievance redress mechanism. This component will also finance the cost (US$218,160) of unarmed national security guards employed by FAO to provide security to their offices. Proposed Operation Abstract The proposed Second Additional Financing scales up selected interventions to enhance food availability and production. Furthermore, it expands its scope to activities that create sustainable economic opportunities in agriculture and food systems through crop diversification and strengthened value chain linkages, ensuring the target households have the necessary means to access and acquire food. To align the project with the expanded scope, a number of adjustments have been proposed, including revising the PDO, recalibrating the key performance indicators and targets, and changes to the components. The PDO will be updated to “improve food security through promoting resilience and commercialization of agriculture production systems for target beneficiaries”. Component 1: “Restoring Agriculture Production”, will be renamed as “Building Resilience for Food Security.” This component will continue to support food production in IPC3+ areas by providing drought-tolerant seeds, high-quality fertilizers, and promoting climate-smart agricultural practices. An input voucher system will be introduced to facilitate a market-based input supply through Agro-dealers, marking a key step towards the commercialization of the seed system. Furthermore, in collaboration with selected CGIAR centers, the project will support the introduction of new breeding lines of various crops. Component 2: "Provision of Water and Resilience Services," will scale up existing interventions in irrigation and watershed management, focusing on water conservation in rainfed, mountainous areas to address soil erosion and groundwater depletion. It will also finance high-efficiency irrigation systems using locally produced equipment and the provision of Laser Land Levelers to private operators in low-altitude plain areas. Cash for work transfers and unconditional cash transfers for women, if women are not allowed to work remain unchanged from the first additional financing of the project. Component 3: Promote Commercialization of Farmers. This new component builds on previous investments to enhance value addition, income, and market access for smallholder producers and their enterprises. In partnership with key value chain actors, the Second Additional Financing will finance investments to improve the capacity of smallholder producers (20 percent women) and agriculture MSMEs (30 percent female-owned) to connect to established commodity supply chains by adopting climate-smart production and value addition technologies. Page 24 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) Component 4: Implementation Support. Additional allocation is proposed under this component to support direct and in-direct cost of project management and M&E for the additional activities proposed. COMPONENTS Last Approved Proposed Component Name Cost (USD) Action Component Name Cost (USD) Restoring Agriculture Restoring Agriculture 162,000,000.00 Revised 210,220,010.00 Production Production Provision of Water and Provision of Water and 89,000,000.00 Revised 105,599,000.00 Resilience Services Resilience Services Implementation Support 44,000,000.00 Revised Implementation Support 81,647,990.00 Promote Commercialization New 12,533,000.00 of Farmers TOTAL 295,000,000.00 410,000,000.00 COSTS & FINANCING Private Capital Facilitation Is this an MFD-Enabling Project (MFD-EP)? YesUnder revision Is this project Private Capital Enabling (PCE)? YesUnder revision LOANS Loan Closing Original Revised Proposed Proposed Deadline Loan/Credit/Trust Status Closing Closing(s) Closing for Withdrawal Fund Applications Not IDA-E4230-001 Effective TF-B8720-001 Effective 28-Jun-2024 30-Jun-2025 31-Dec-2027 30-Apr-2028 Page 25 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) TF-C3845-001 Effective 30-Jun-2025 30-Jun-2025 31-Dec-2027 30-Apr-2028 Not TF-C7599-001 Effective DISBURSEMENTS Operation Dates & Projection Details Reasons to change the full Disbursement date and/or the projection Implementation Start Date Operation Closing Date 02-Jun-2022 30-Jun-2025 Projected Date for Full Disbursement 30-Oct-2025 Expected Disbursements (in US $) (Absolute) Original Estimation at Preparation Actual Year Revised Estimation (Approval Package – 02 Jun 2022) FY2022 7,666,666.66 7,666,666.66 49,000,000.00 FY2023 122,000,000.00 122,000,000.00 101,000,000.00 FY2024 50,000,000.00 60,000,000.00 89,500,000.00 FY2025 0.00 90,000,000.00 25,500,000.00 FY2026 0.00 0.00 0.00 ENVIRONMENTAL & SOCIAL Overview Operation Location Operation location and salient physical characteristics relevant to the ESS Assessment (geographic, environmental, social) (if known) The project will be implemented across 34 provinces of Afghanistan. Detailed operation location(s) and salient physical characteristics relevant to the ESS Assessment (geographic, environmental, social) The scope of the Additional Financing 2 (AF2) as with the parent project and AF1 will be countrywide in scope, with no associated facilities. The interventions will mainly be in rural areas working with local farming communities in the wheat, maize, legumes, vegetable and horticulture sectors. The project activities will be limited to existing farms and will not include the conversion of any new lands for agriculture purposes. Given the fragile, conflict-affected, and violent (FCV) context in Afghanistan, project implementation faces significant challenges, including security risks and social instability and the ongoing situation. The project aims to include 20% women among the smallholders and 30% Page 26 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) women-owned agribusinesses, promoting gender equality and empowering women economically. Overall, the project aims to build resilience, enhance food security, promote commercialization of farmers and promote sustainable agricultural practices while addressing significant environmental and social risks in a challenging FCV context. Borrower’s Institutional Capacity FAO as the main implementation agency for the original EFSP project, will remain responsible for the implementation of the second Additional Financing to the EFSP project components, with additional implementing partners. FAO already has an existing management structure to implement the project which includes qualified staff and resources to support management of E&S risks and impacts of the project. FAO has one International E&S Specialist, two national Senior E&S Specialists, one Security Advisor, a Plant Protection Specialist, and one Gender Specialist and one PSEA/compliance specialist supporting the project and in provincial level the project has engaged 13 regional E&S Safeguard Assistants, of which three positions are under recruitment Process with support from their HQ E&S team. In addition, FAO will hire a dedicated Occupational Health and Safety (OHS) Specialist within 30 days of the Effective Date of AF2 to support OHS implementation and capacity building to all Implementing Partners, contractors, and relevant Project staff. The Environment and Social performances of the Project were downgraded to Moderately Satisfactory (MS) in the previous ISM due to delays in completion of the ESCP actions. The disclosure of the updated Environmental and Social Management Framework (ESMF) for AF1 was delayed and not disclosed per timeline in the approved ESCP. In addition, the project team has reported several incidents, including OHS, child labor, and SEA/SH. Recently incident reporting has been improved, however delays occurred in the submission of investigation reports with subsequent corrective action plans. The Project team was advised to apply the ESCP timeline for incident reporting and corrective actions including sharing corrective actions implementation status reports of OHS-related incidents. They were also informed to issue notifications to IPs and contractors to I) fully comply with child labor requirements stipulated in the approved labor management procedures (LMP); and ii) apply age verification procedures for engagement of workforce. The project's performance will be reassessed after corrective actions are implemented, with a review scheduled for the next Implementation Support Mission. Regarding E&S incidents management, FAO PMU will strengthen the capacity of their staffing for incident reporting, investigation, preparation, and implementation of CAP, as outlined in the capacity building plan. FAO has its own Environment and Social Management Guidelines (ESMG) and a policy that contains 9 environmental and social safeguards standards. While these policies are mostly well aligned with the World Bank’s ESF in substance, there are a few gaps including the following: the guidelines do not mention specific provisions such as Stakeholder Engagement Plan (SEP), a LMP and worker’s Grievance Mechanism (GM). The additional finance will continue to follow the ESF requirement for compliance as relates to the additional financed activities. FAO has well- demonstrated operational capacity to deliver time-critical development actions across all thirty-four provinces of Afghanistan. Currently, FAO has 443 staff in total in FAO Afghanistan of which 402 are national and forty-one are international personnel of which close the 25-30 international staff are in country at any given point of time. FAO has four offices in Kabul and eight offices across the eight regions of Afghanistan and two district level offices. Over 73 percent of this total 443 staff are technical experts in various thematic areas as per FAO's mandate. Implementation Partners (IPs) NGOs and contractors will be continued to engage by FAO to implement project activities and work closely with farmers, users and agribusiness who will contribute to the project’s implementation through the existing relevant Community Representative Groups (CRGs) and Irrigation Associations. FAO will ensure cascading responsibility of E&S requirements through relevant contractual provisions with contractors and other implementing partners. The World Bank Monitoring Agent (ARTF-TPMA) will continue to monitor and report on implementation and compliance with the ESMF, ESCP and other environmental and social (E&S) risk management measures. Assessment Environmental & Social Risk Classification Page 27 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) Environmental Risk Rating Social Risk Rating Substantial Substantial Original Environmental and Social Risk Rating (ESRC) Revised Environmental and Social Risk Rating (ESRC) Substantial Substantial Environmental & Social Standards E & S Standards Relevance ESS 1: Assessment and Management of Environmental and Social Risks and Relevant Impacts ESS 10: Stakeholder Engagement and Information Disclosure Relevant ESS 2: Labor and Working Conditions Relevant ESS 3: Resource Efficiency and Pollution Prevention and Management Relevant ESS 4: Community Health and Safety Relevant ESS 5: Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Relevant ESS 6: Biodiversity Conservation and Sustainable Management of Living Natural Relevant Resources ESS 7: Indigenous Peoples/Sub-Saharan African Historically Underserved Not Currently Relevant Traditional Local Communities ESS 8: Cultural Heritage Not Currently Relevant ESS 9: Financial Intermediaries Not Currently Relevant Summary of Assessment of Environmental and Social Risks and Impacts The environmental and social risks of the Project remain substantial under the 2nd EFSP AF. The potential environmental risks and impacts are related to fatal incidents and serious injuries, Occupational, Health and Safety (OHS) risk due to labor-intensive activities, risks as a result of poor handling of agriculture inputs, such as agrochemicals and farm implements (storage processing, post-harvest handling), ) risk of water pollution as a result of runoff, sedimentation of nearby water bodies, and soil compaction as a result of use of farm machinery in land preparation, health and safety issues associated with the safe use and handling of agrochemicals are also envisaged, security risk management at the project level remains a priority as engagement of various entities not covered by the UN security protocols further heightens human security risk. Key social risks and impacts are similar to the original project and AF1 and include social inequalities, exclusion, and discrimination of certain categories of people, such as vulnerable and marginalized groups, exposure of workers to unhealthy and unsafe working conditions, including the risk of child and forced issues, community health and safety risk around construction sites and risk of exposure to infectious diseases for project workers, minor labor influx risk, and sexual exploitation, abuse and sexual harassment (SEA/SH) risk and potential physical safety risks as a result of the FCV context pose significant labor-related risks in the context of agriculture operations in Afghanistan. Overall, the second AF interventions are expected to have significant positive impacts as the smallholders’ farmers and water users will benefit most from the Project. The new activities will support local input traders as part of the food system. It will also include providing partial matching grants to agribusiness. The relevant World Bank ESSs are ESS1, ESS2, ESS3, ESS4, ESS5, ESS6 and ESS10. An Environmental and Social Commitment Plan (ESCP) and a Stakeholder Engagement Plan (SEP) which were prepared under the parent and Page 28 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) AF1 have been updated to reflect the new activity and disclosed before appraisal together with the appraisal ESRS. For E&S risk management, the Environment and Social Management Framework (ESMF) and A Labor Management Procedure (LMP), which were prepared under the parent project and updated for the first AF have been further updated for the second AF and will be publicly disclosed within 30 days of the Effective Date of AF2. Furthermore, the project has PMP and a Security Risk Management Plan (SRMP) which have been developed for AF1 and will continue to be implemented for AF2. FAO will hire a dedicated OHS Specialist within 30 days of the Effective Date of AF2 to support OHS implementation and capacity building to all Implementing Partners, contractors and relevant Project staff. In addition, FAO will develop and adopt an OHS Management Plan no later than 60 days after the Effective Date of AF2. In the interim, the OHS Management Measures set out in the updated ESMF will be implemented. FAO will cause Implementing Partners/Contractors to update, adopt, and therefore implement an Environmental and Social Management Plan (ESMP) based on the ESMP template, as set out in the ESMF, for activities that require the adoption of such ESMPs, consistent with the relevant ESS2. The adoption of such ESMP will be prior to the carrying out any activities. The project will apply lessons learned from the parent and the first AF project to enhance the management of potential E&S risks and impacts; these lessons learned have already been reflected in the updated ESMF of AF2. The SEA/SH risk rating for this project is considered Substantial on account of the country context and risks arising from the cash and voucher assistance to female beneficiaries. To manage SEA/SH risks, FAO will update and implement the SEA/SH Action Plan within 30 days of the Effective Date, which shall include time bound and resourced actions with plans and indicators for monitoring. FAO, as the main implementation agency for the original EFSP project, will remain responsible for the implementation of the project components, with additional partnership with implementing partners e.g. INGOs, NGOs and Constructions Companies. FAO already has an existing management structure to implement the project which includes qualified staff and resources to support management of ESHS of the project. The Implementation Partners (IPs), NGOs and contractors will continue to be engaged by FAO to implement project activities and work closely with local communities and farmers who will contribute to the project’s implementation. The World Bank Monitoring Agent (TPMA) will continue to monitor and report on implementation and compliance with the E&S requirements. Last Finalized Date Is a common approach being considered? 27-Feb-2025 No LEGAL Legal Operational Policies Policies Triggered? Current Projects on International Waterways OP 7.50 Yes Projects in Disputed Area OP 7.60 No Legal Covenants Loan/Credit/TF Description Status Action The Recipient shall: (a) not later than forty- five (45) days after the Effective Date, update and thereafter maintain, throughout the TF-C3845 Not yet due Revised implementation of the Project, the Project Implementation Manual, in form and substance satisfactory to the Bank; and (b) Page 29 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) carry out the Project in accordance with the provisions of the Project Implementation Manual. (Sections I.B.1 of the Schedule 2 to the Grant Agreement and the Financing Agreement). Monitoring, evaluation, financial and reporting procedures for third-party monitoring of Project implementation in the Project Implementation Manual under Section I.B.1(a) above shall include, among others, detailed terms of reference of the Recipient’s Third-Party Monitoring, which TF-C3845 Not yet due Revised may be carried out in coordination with the Bank’s Third Party Monitoring Agent, and sharing of information between the Recipient’s Third-Party Monitoring Agent(s) and the Bank’s Third Party Monitoring Agent. (Sections I.B.2 of the Schedule 2 to the Grant Agreement and the Financing Agreement). Schedule 2, Section I.B.2: monitoring, evaluation, financial and reporting procedures for third-party monitoring of project implementation in the Project Implementation Manual under Section I.B.1 (a) above shall include, among others, After delay TF-B8720 detailed terms of reference of the Recipient’s Mark for Deletion complied with Third-Party Monitoring, which may be carried out in coordination with the monitoring agent of the Bank and sharing of information between the Recipient’s Third-Party Monitoring Agent(s) and the Bank’s monitoring agent. The Recipient shall ensure that the Project is carried out in accordance with the Environmental and Social Standards, in a TF-C3845 Not yet due Revised manner acceptable to the Bank. (Sections I.E.1 of Schedule 2 to the Grant Agreement and the Financing Agreement). The Recipient shall maintain throughout the period of the implementation of the Project, TF-B8720 Complied with No Change the Project Implementation Unit, with composition, mandate, and resources to be Page 30 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) agreed with the Bank, which shall: (a) include, at all times during Project implementation, experts in adequate number, each with terms of reference, qualifications, and experience to be agreed with the Bank, allocated to or recruited for the Project as and when their expertise will be needed for the efficient implementation of the Project and the achievement of its development objectives; and (b) be responsible for day-to-day management and implementation of the Project, including technical, fiduciary (financial management and procurement), grievance redress, monitoring and evaluation, health and safety, and social and environmental aspects of the Project, and coordination with other stakeholders, all as set out in detail in the Project Implementation Manual. Conditions Type Description of Conditions Action Section IV. B. of schedule 2. 1. No withdrawal shall be made: (a) for payments made prior to the Signature Date except that withdrawals up to an aggregate amount not to exceed seven hundred thousand United States Dollars ($700,000) may be made for payment made prior to this date but on or after March 24, 2022 for Eligible Expenditures under Categories (1) and 2; (b) for any payment for Taxes levied by or in the territory of the Member Country; or (c) for the purpose of any payment to persons or entities, or for any import of goods, if such Disbursement Marked for Deletion payment or import, to the Bank’s knowledge, is prohibited by a decision of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations. 2.Without prejudice to any other provision of this Agreement, the Recipient further undertakes that no Grant proceeds or resources may be used for law-enforcement, security, military, or paramilitary purposes or for any payments made to any law-enforcement, security, military, or paramilitary forces without the Bank’s express approval. Page 31 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) No withdrawal shall be made: (a) for payments made prior to the Signature Date; (b) for the purpose of any payment to persons or entities, or for any import of goods, if such payment or import, to the Association’s knowledge, is prohibited by a decision of the United Disbursement Nations Security Council taken under Chapter VII of the New Charter of the United Nations; (c) under Category 2 until the Recipient has developed and adopted a Voucher Implementation Manual satisfactory to the Association (Section IV.B.1 of Schedule 2 to the Financing Agreement). No withdrawal shall be made: (a) for payments made prior to the Signature Date; (b) for the purpose of any payment to persons or entities, or for any import of goods, if such payment or import, to the Association’s knowledge, is prohibited by a decision of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations; (c) No withdrawal shall be made: (a) for payments made prior to the Signature Disbursement Date; (b) for the purpose of any payment to persons or New entities, or for any import of goods, if such payment or import, to the Bank’s knowledge, is prohibited by a decision of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations; (c) under Category 2 until the Recipient has developed and adopted a Matching Grants Manual satisfactory to the Bank. (Section IV.B.1 of Schedule 2 to the Grant Agreement). Page 32 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) RESULTS COUNTRY: Afghanistan Emergency Food Security Project @#&OPS~Doctype~OPS^dynamics@afaprresultframework#doctemplate Project Development Objective(s) Improve food security through promoting resilience and commercialization of agriculture production systems for target beneficiaries. PDO Indicators by PDO Outcomes Baseline Completion Period Revised Promote resilience Revise Production increase in crops supported by the project (Percentage) Dec/2027 25.00 Rationale for Change The indicator and target have been maintained, with the end date updated. Revise Farmers reached with agricultural assets or services (Number) Dec/2027 1,813,000.00 Rationale for Change This target has been increased to reflect the additional investments made under AF2. ➢ ReviseFarmers reached with agricultural assets or services - Female (Number) Dec/2027 362,600.00 Rationale for Change This target has been increased to reflect the additional investments made under AF2. New Promote commercialization Page 33 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) New Number of small agribusinesses investing in enhanced production and value addition through the project support (Number) Dec/2027 150 ➢ NewShare of project-supported small agribusinesses investing in enhanced production and value addition that are women-owned (Percentage) Dec/2027 30 New Food security New People fed as a result of increased agricultural/food production (Number of people) CRI Dec/2027 9,590,000 ➢ NewPeople fed as a result of increased agricultural/food production - Female (Number of people) CRI Dec/2027 4,747,050 ➢ NewPeople fed as a result of increased agricultural/food production - Youth (Number of people) CRI Dec/2027 0 Intermediate Results Indicators by Components Baseline Completion Period Revised Restoring Agriculture Production Revise Certified wheat seeds distributed to farmers (Metric ton) Apr/2022 Dec/2027 0.00 60,500.00 Rationale for Change This indicator is maintained, while the target is increased from 47,000 to 60,500 to reflect the additional support provided under the AF2. Revise Area cultivated for food production with the distributed seeds by the beneficiaries (Hectare(Ha)) Apr/2022 Dec/2027 0.00 477,000.00 Page 34 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) Rationale for Change This indicator is maintained, while the target is increased from 360,000 to 477,000 ha to reflect the additional support provided under the AF2. Revise Female headed-households benefiting from support for production of higher nutrition value vegetables and legumes (Number) Apr/2022 Dec/2027 0.00 225,000.00 Rationale for Change This indicator is maintained, while the target is increased to reflect the additional support provided under the AF2. Revise Beneficiaries with improved processing and post harvest management facilities (Number) (Number) Nov/2023 Dec/2027 0.00 31,000 Rationale for Change This indicator is maintained, while the target is increased to reflect the additional support provided under the AF2. Revise Private Seed Enterprises with improved capacity to produce and market climate resilient seeds (Number) (Number) Apr/2022 Dec/2027 0.00 100.00 Rationale for Change The indicator and target have been maintained, with the end date updated. New New climate-resilient technologies introduced (Number) Oct/2024 Dec/2027 0 10 Revised Provision of Water and Resilience Services Revise Area provided with new/improved irrigation or drainage services (Hectare(Ha)) Apr/2022 Dec/2027 0.00 373,370.00 Rationale for Change This indicator is maintained, while the target is increased to reflect the additional support provided under the AF2. New Area planted with climate resilient vegetative coverage (Hectare(Ha)) Nov/2023 Dec/2027 0 3,900 Page 35 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) Revise Rehabilitated Irrigation Canals (Kilometers) Apr/2022 Dec/2027 0.00 1,551.00 Rationale for Change This indicator is maintained, while the target is increased from 1,123 Km to 1,551 km to reflect the additional investment made under AF-2. Revise Erosion control structures constructed (Number) Apr/2022 Dec/2027 0.00 160.00 Rationale for Change This indicator is maintained, while the target is increased from 140 to 160 to reflect the additional investment made under AF-2. Revise Karezes restored/repaired through upper catchment management (Number) Apr/2022 Dec/2027 0.00 180.00 Rationale for Change This indicator is maintained, while the target is increased to reflect the additional investment made under AF-2. Revise Days of short-term jobs created by project (Number) Apr/2022 Dec/2027 0.00 8,529,000.00 Rationale for Change This indicator is maintained, while the target is increased from 7,929,000 to 8,529,000 to reflect the additional investment made under AF-2. ➢ ReviseDays of short-term jobs worked by female beneficiaries (Number) Apr/2022 Dec/2027 0.00 409,392.00 Rationale for Change This indicator is maintained, while the target is increased to reflect the additional support provided under the AF2. Revise Number of female potential cash for work beneficiaries reached with unconditional cash transfers (Number) Feb/2023 Dec/2027 0.00 0.00 Rationale for Change The indicator has been maintained, with the end date updated. Page 36 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project (P178280) Revised Implementation Support Revise Beneficiaries satisfied with support provided by the project (Percentage) Apr/2022 Dec/2027 0.00 80.00 Revise ➢ Of which female (Percentage) Apr/2022 Dec/2027 0.00 80.00 Revise Public grievances received and resolved within the prescribed timeline (Percentage) Apr/2022 Dec/2027 0.00 80.00 New Promote Commercialization of Farmers New Number of smallholder farmers with enhanced access to markets due to project interventions (Number) Oct/2024 Dec/2027 0 15,000.00 New Women smallholder farmers reporting enhanced access to markets due to project interventions (Number) Dec/2027 3,000 Page 37 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project(P178280) PROJECT PAPER Monitoring & Evaluation Plan PDO Indicators by Outcome PDO Outcome Promote resilience Indicator Name People fed because of increased agricultural/food production (Number) The number of people benefiting from the project across multiple sectors that strengthen food and nutrition security. These interventions may span the universally accepted dimensions of food and nutrition security, including the availability of food, access to food, utilization of food and stability of food systems. Key activities include introducing higher-yielding, climate-resilient technologies and crop varieties. Additionally, the project focuses Description on enhancing access to improved irrigation water, which plays a critical role in boosting crop yields, especially in areas prone to water scarcity. Furthermore, the project supports market and income-generating activities, such as strengthening value chains, facilitating access to markets, and providing training in entrepreneurship and business management. These efforts collectively contribute to increased food availability, economic resilience, and improved livelihoods for smallholder farmers and agribusinesses in the target areas. Frequency Annual Postharvest household-level interviews and crop cut surveys in farmers' fields will be conducted by FAO staff or a contracted third-party monitoring Data source agent Methodology developed by the World Bank corporate score card indicator will be used, which requires reporting on the volume of agricultural products produced, processed or traded within the scope and duration of the operation. The following conversion methodology will be used: Number Methodology for of People Fed=∑ Foodi Caloriei/365×R Data Collection Index i represents the food commodity type. Food represents the increased or maintained amount of food commodity i produced or traded in by the project (kg). Calorie represents the unit calorie contained in food commodity i (Kcal/kg). R represents the Minimum Daily Requirement (Kcal). Responsibility for FAO Data Collection Indicator Name Production increase in crops supported by the project (Percentage) This indicator tracks productivity gains per unit of land by target households through input packages. The benefits will be realized at the harvest Description season following the sowing of improved seeds and the application of recommended technologies and practices. Wheat, as a key crop in the target areas, will be the primary focus for measuring productivity improvements. Frequency Annually Postharvest household-level interviews and crop cut surveys in farmers' fields will be conducted by FAO staff or a contracted third-party monitoring Data source agent Page 38 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project(P178280) PROJECT PAPER Methodology for Household-level interviews and crop cut surveys Data Collection Responsibility for FAO Data Collection Indicator Name Farmers reached with agricultural assets or services (Number) This indicator measures the number of farmers who were provided with agricultural assets and services as a result of World Bank project support. Assets or services include (i) input packages for production, (ii) basic tools for backyard kitchen gardening; (iii) extension, training, education (iv) irrigation and drainage. Farmers are people engaged in agricultural activities or members of an agriculture-related business (disaggregated by men Description and women) targeted by the project. Key activities contributing to the target include Improved Wheat Packages for 1,170,000 households; Kitchen Gardening & Nutritious Crops Inputs for 200,000 female-headed households; Irrigation & Watershed Management for 408,000 households; Processing & Post-Harvest Facilities for 12,000 households; and support for Other Crops (e.g., saffron, orchards, okra, maize, soybean, Hing) for 30,000 households. Frequency Quarterly Data source FAO-MEAL distribution database Input distribution data is managed by FAO, which uses implementing partners' weekly reports and consolidates them into a general input distribution Methodology for database on a weekly basis. Final consolidations occur monthly, quarterly, and annually. The reach of irrigation and watershed management activities Data Collection will be sourced from the WRI database. Responsibility for FAO Data Collection Indicator Name Number of small agribusinesses investing in enhanced production and value addition through the project support (Number) This indicator reports on the number of SMEs and value chain actors investing in agriculture, which is enabled through the TA and Matching grant Description scheme offered through the project. As the project advances its implementation, it will also capture the value of the investment leveraged, which will be periodically reported, with the final number to be captured in the project’s implementation completion report (ICR). Frequency Annually Data Source Investors approved business plans, investors' interview, and records of investment. Methodology for Review of approved business plans, interviews, and data collected by FAO staff. TPMA and BDS providers Data Collection Responsibility for FAO Data Collection Page 39 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project(P178280) PROJECT PAPER Monitoring & Evaluation Plan Intermediate Results Indicators by Components Results Area Restoring Agriculture Production Indicator Name Certified wheat seeds distributed to farmers (Metric ton) This indicator captures the quantity of certified seeds produced and distributed to the districts, which is an intermediate step before final distribution to Description the farmers. The final distribution is captured under PDO1, with the addition of percentage usage. Frequency Semi-annually Data source FAO MEAL inputs distribution database Methodology for Input distribution data is managed by FAO, which consolidates the implementing partners' reports into a general input distribution database on a weekly Data Collection basis. Final consolidations are done on a monthly, quarterly, and annual basis. Responsibility for Data FAO Collection Indicator Name Area cultivated for food production with the distributed seeds by the beneficiaries (Ha) Description This indicator captures the amount of cultivated area with the distributed seeds by the beneficiaries in hectares. Frequency Annually Data source Post Harvest Monitoring (farmers’ recall) and/or crop cut survey for wheat production package Methodology for Input distribution data is managed by FAO, which uses implementing partners' weekly reports and consolidates them into a general input distribution Data Collection database on a weekly basis. Final consolidations occur monthly, quarterly, and annually. Responsibility for Data FAO Collection Indicator Name Female headed households benefiting from support for production of higher nutrition value vegetables and legumes (Number) This indicator measures the number of female-headed households benefiting input packages seeds, basic tools and technical training on improved and Description climate smart production practices for backyard vegetable and legume cultivation. Frequency Semi-annually Data source FAO-MEAL Methodology for Input distribution data is managed by FAO, which uses implementing partners' reports and consolidates them into a general input distribution database Data Collection on a weekly basis. Final consolidations occur monthly, quarterly, and annually. Responsibility for Data FAO Collection Indicator Name Beneficiaries with improved processing and post-harvest management facilities (Number) Description This indicator captures the number of farmers who benefit from post-harvest facilities such as solar dryers, storage facilities, and raisin drying houses Page 40 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project(P178280) PROJECT PAPER Frequency Semi-annually Data source Implementing partners’ reports and FAO – MEAL distribution database Methodology for Document review Data Collection Responsibility for Data FAO Collection Indicator Name Private Seed Enterprises with improved capacity to produce and market climate resilient seeds (Number) Description Private sector seed enterprises receiving technical capacity building support and in turn providing seeds to the market Frequency Annually Data source Capacity assessment reports and interviews Methodology for Data collection using Enterprise Capacity Assessment Tool Data Collection Responsibility for Data FAO Collection Results Area Provision of Water and Resilience Services (Ha) Indicator Name Area provided with new/improved irrigation or drainage services This indicator measures the total area of land provided with irrigation and drainage services under the project, including in (i) the area provided with new irrigation and drainage services, and (ii) the area provided with improved irrigation and drainage services, expressed in hectare (ha) as well as area Description provided with riverbank protection, soil and water conservation measures as well as improved watershed management and repairs to upper catchment of Karezes. Frequency Annually Data source WRI database, implementing partners, and completion reports from the partner construction company. Methodology for The data will be sourced from technical survey documents, watershed management summaries by IPs through CFW, sub-project proposals for irrigation Data Collection and drainage works by contractors, and monthly and quarterly progress reports from the technical teams. Responsibility for Data FAO Collection Indicator Name Rehabilitated Irrigation Canals (Kilometers) Description This indicator measures the length of irrigation canals that are rehabilitated with the project support. Frequency Semi annually Data source Work completion report/Monitoring report (including WRI mission reports) Methodology for Document review Data Collection Page 41 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project(P178280) PROJECT PAPER Responsibility for Data FAO Collection Indicator Name Area planted with climate resilient vegetative coverage (Ha) This indicator covers sustainable land and water management interventions, including agroforestry, improved grazing land management (agronomic Description watershed management measures), and forestry (agronomic measures). Frequency Annually Data source Field data collection/ IP reports Methodology for Direct observation and document review (monitoring reports) by FAO staff and FAO contracted third party monitoring agent Data Collection Responsibility for Data FAO Collection Indicator Name Erosion control structures constructed (Number) Description This indicator captures the number of watersheds that will be constructed/rehabilitated through the project. Frequency Annually Data source Work completion report/Monitoring report (including WRI mission reports) Methodology for Document review Data Collection Responsibility for Data FAO Collection Indicator Name Karezes restored/repaired through upper catchment management (Number) This indicator captures the number of Karezes restored through the upper catchment management to increase the discharge, and/or repaired, and/or Description improved through the construction of regulating ponds. Frequency Annually Data source Work completion reports/Monitoring reports (including WRI mission reports) Methodology for Data will be collected through FAO staff and FAO contracted third party monitoring agent Data Collection Responsibility for Data FAO Collection Indicator Name Days of short-term jobs created by project (Number) Description This indicator measures the number of days worked by unskilled workers men and women on irrigation/watershed activities. Frequency Semi-annually Page 42 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project(P178280) PROJECT PAPER Data source Records of daily labor employed on activities funded by the project (including geo-localized picture of daily register of employment) Methodology for Review of monitoring reports/attendance and registers Data Collection Responsibility for Data FAO Collection Indicator Name Days of short-term jobs worked by female beneficiaries (Number) Description This indicator measures the number of days worked by unskilled women on irrigation/watershed activities. Frequency Semi-annually Data source Records of daily labor employed on activities funded by the project (including geo-localized picture of daily register of employment) Methodology for Review of monitoring reports/attendance and registers Data Collection Responsibility for Data FAO Collection Indicator Name Number of female potential cash for work beneficiaries reached with unconditional cash transfers (Number) Description This is the total count of female beneficiaries supported with unconditional cash transfers. Frequency Semi-annually Data source Distribution list/Identification, Delivery, Empowerment Application (IDEA) report Methodology for Beneficiaries' data collected during the selection processes Data Collection Responsibility for Data FAO/ FAO Contracted third-party monitoring agent Collection Results Area Implementation Support Indicator Name Beneficiaries satisfied with support provided by the project (Percentage) Measures the proportion of beneficiaries (from all types of activities) that are moderately to highly satisfied with project support. It would be needed to conduct a survey of beneficiaries. A beneficiary will be considered satisfied, when 80 percent of his/her answers are excellent or good (there will be a Description scale with questions from very bad to excellent; The satisfaction of beneficiaries will be assessed for example on the following topics: satisfaction with seeds (timeliness, quality, advice), kitchen gardens (volume of seeds, timeliness, quality of seeds, etc.), irrigation infrastructures (timeliness, quality, participation of community, etc.) Frequency Annually Data source Post-Distribution Monitoring Methodology for Household level random survey conducted by FAO / FAO Contracted third-party monitoring Data Collection Page 43 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project(P178280) PROJECT PAPER Responsibility for Data FAO Collection Indicator Name Of which female (Percentage) Description Measure the proportion of beneficiary female (from all types of activities) that are moderately to highly satisfied with project support Frequency Annually Data source Post-Distribution Monitoring Methodology for Household level random survey conducted by FAO / FAO Contracted third-party monitoring Data Collection Responsibility for Data FAO Collection Indicator Name Public grievances received and resolved within the prescribed timeline (Percentage) The grievances will be accounted for and tracked it will include the person raising the complaint (if possible), the type of complaint, the date of reception Description by the project, and the entity responsible for solving the issue. The grievances will cover all aspects of project implementation and the GRMs will be available to direct and indirect project beneficiaries. Frequency Annually and at project end FAO complaints and Feedback Mechanism database as well as complaints registered through post distribution monitoring and/or outcome Data source monitoring/post-harvest monitoring. Methodology for FAO complaints and feedback mechanism (hotline, in-person interviews/field visits, monitoring surveys – PDM, PHM/outcome) Data Collection Responsibility for Data FAO Collection Results Area Promote Commercialization of Farmers Indicator Name Smallholder farmers with enhanced access to markets due to project interventions This indicator measures the number of smallholder farmers and small agribusinesses benefiting from enhanced market access because of the project's support. This includes improvements in access to new distribution channels, and better linkages between producers and buyers. The project's support Description may also involve facilitating partnerships, improving transportation infrastructure, enhancing product quality standards, and providing training on market-oriented practices. Frequency Annually Data source Field data collection and interviews Methodology for Household level random survey/farmers interviews through FAO staff and FAO contracted third party monitoring agent Data Collection Responsibility Data will be collected through FAO staff and FAO contracted third party monitoring agent Page 44 The World Bank Second Additional Financing for the Afghanistan Emergency Food Security Project(P178280) PROJECT PAPER for Data Collection Indicator Name Women smallholder farmers reporting enhanced access to markets due to project interventions This indicator measures the number of female smallholder farmers and women owned small agribusinesses benefiting from enhanced market access Description because of the project's support, which include, improvements in access to new distribution channels, and better linkages between producers and buyers. Frequency Annually Data source Field data collection and interviews Methodology for Household level random survey/farmers interviews/through FAO staff and FAO contracted third party monitoring agent Data Collection Responsibility for Data Data will be collected through FAO staff and FAO contracted third party monitoring agent Collection Page 45