West Africa Food System Resilience Program (FSRP) (Phase II, P178132) Implementation Support Mission (ISM), Accra, Ghana from April 29– May 03, 2024 I. INTRODUCTION 1. From April 29- May 03, 2024, the World Bank (WB) and the Ministry of Food and Agriculture (MOFA), Ministry of Finance (MOF), and staff of the Project Implementation Unit (PIU) jointly undertook an Implementation Support Mission (ISM)1 for the West Africa Food System Resilience Program (P178132) in Accra, Ghana. The WB team expresses its appreciation to the Ministries and PIU for the preparation of the mission. 2. The objectives of the ISM were to: (i) present and discuss status of agreed actins from last mission and component specific technical details; (ii) review project procurement, financial management, and environmental and social safeguards; (iii) follow-up on distribution of US$ 40 million fertilizer to flood victims and other vulnerable populations; (iv) review monitoring and evaluation of the project, status of key outputs and outcomes, and baseline survey; (v) carry out field visit to Weta Irrigation Scheme for planning of project investments. The Aide Memoire was discussed and agreed virtually in a meeting held on May 03, 2024. II. PROJECT DATA AND RATINGS Project Data USD (millions) Original Project Amount 150.00 Total Disbursement 62.09 Disbursement in FY 50.00 Closing Date 30 September 2028 Detailed Ratings Previous Current (Nov ’23) (May ’24) Progress towards achievement of PDO S MS Implementation Progress (IP) S MS Component 1: Digital Advisory Services for Agriculture and Food Crisis Prevention and Management. S MS Component 2: Sustainability and Adaptive Capacity of the Food System’s Productive Base. S MS Component 3: Regional Food Market Integration and Trade. S MS Component 5: Project Management MS MS Financial Management S S Procurement MS MS Environmental and Social Risk Management S S M&E S MS 1 The full list of participants of the mission is included in Annex 6 1 III. IMPLEMENTATION PROGRESS AND KEY FINDINGS 3. Summary: Overall, the team assessed progress towards achievement of the Project Development Objective (PDO) as Moderately Satisfactory. The rating was revised down from Satisfactory. While the PIU is congratulated for continuing to roll out activities in all components, the mission agreed that prioritization and acceleration of works for big ticket investments is delayed.2 This has manifested in very little achievement of results for the project. The contracting and deployment of inputs from the fertilizer linked US$ 40 million restructuring is ongoing but is lagging and needs to be accelerated. A pilot for input distribution among some flood victims in North Tongu, district was carried out at the end of April 2024. A brief on input distribution is included in Annex 8. Agreed actions for next mission are in Annex 1, status of actions from last mission are in Annex 2, and list of procurement activities to be completed by the next mission is included in Annex 6. 4. Key Issues and Actions: First, MOFA and its representatives in the PIU have requested a replenishment of the US$ 40 million prior to the end of Fiscal Year 2025 (June 2025) given the project restructuring in December 2024 for inputs. It is anticipated that funds in component 2 will be depleted by FY 25 and hinder progress in achieving project objectives if the replenishment is not carried out. Second, the World Bank recommends hiring a focal point to monitor the implementation of the additional financing grant of US$ 15.77 million for its duration. Third, the project agreed to begin preparation of the Annual Work Plan and Budget for 2025 by July 2024 and finalize by September 2025. This is best practice and important due to upcoming elections in Ghana in December 2024. Fourth, the project agreed that for future missions implementing partners; like the specific directorates of MOFA, Ghana Irrigation Development Authority (GIDA), Ghana Meteorological Entity (GMET), Center for Scientific and Industrial Research (CSIR) must participate. 5. One formal complaint was recorded on the KIS contract evaluation of bids, to which the PIU has provided written responses per procurement regulation. The mission stressed the importance of impartiality and confidentiality, especially in evaluation panels, and implications for implementation. 6. Component 1 (C1): Digital Advisory Services for Agriculture and Food Crisis Prevention and Management. The implementation status of C1 activities is rated as Moderately Satisfactory. The supply and installation of 20 automated weather stations for GMET is still underway as reported in the prior mission. The Implementation Agreement with GMET has not yet been completed and is delayed. There was some traction on the climate module, including a workshop with European Space Agency (ESA), MOFA, GMET and the PIU. A decision was reached that the project could support GMET to acquire Integrated Information System to model and configure weather and climate information for MOFA. The procurement of the system is expected to begin by the end of May 2024. In turn, MOFA would develop a tool converting the information into user friendly information for farmers, extension agents and others. For this climate system(s), pest and disease, and food and nutrition security modules, mission noted little progress despite PIU engagements with GhAAP Consultants, SRID and PPRSD. The project will follow up on how these would fit in the Ghana Agriculture and Agribusiness Platform (GhAAP). The PIU is to 2These include (i) poultry intensification scheme rollout, (ii) Kpong Irrigation Scheme (KIS) contracting and start of works, (iii) rehabilitation works for warehouses, key markets, and border posts, (iv) agribusiness matching grants rollout, (v) support for developing climate, pest and disease, food and nutrition security modules to support the Ghana Agriculture and Agribusiness Platform (GhAAP). 2 determine modality for GMET data scientists to work with MOFA entities to formulate which climate data, and in what format is required (e.g. based on crop and crop calendars, and sub-region). A proposal is to be submitted to the WB by the end of May 2024. The mission discussed accelerating the work under component 1 as results like beneficiaries with access to agrometeorological information cannot be achieved until the required systems are developed. 7. Component 2 (C2): Sustainability and Adaptive Capacity of the Food System’s Productive Base. The implementation status of C2 activities is rated as Moderately Satisfactory. The PIU has not yet consolidated activities under this component, as discussed in prior missions, to attain impact and results. Under sub-component 2.1, planned agriculture physical infrastructure facilities to be upgraded3 under the Council for Scientific and Industrial Research (CSIR) system are delayed due to MOFA seeking an MOU with the CSIR. The PIU was advised that each entity should generate an economic cost-benefit analysis and sustainability plans, including how a facility would finance self-maintenance and operations. This activity has not yet been completed since the last mission. Under sub-component 2.2, rollout of the Poultry Intensification Scheme (PIS) is behind schedule due to the need for PIU to address MOFA review comments on credit support package and repayment terms. The project expects to rollout the PIS before the end of May 2024. A critical area of investment under this subcomponent is in sustainable landscape is behind schedule with receipt of TORs and clearance by WB occurring just prior to the mission. The sub-component requires the PIU to develop a list of climate smart agriculture (CSA) technologies. At the same time, a list of potential sub-projects at landscape, community4 or farmer level for ILM interventions is required and should be added to the PIM. The sub-component requires the PIU to identify and promote adoption of climate smart agriculture (CSA) technologies. At the same time, a list of potential sub-projects at landscape, community or farmer level for ILM interventions is required and should be added to the PIM. It was agreed that the CSA list and sub-projects be developed by the end of June and December 2024 respectively. These are major activities for the project that would contribute to the PDO and needs expedition. The national irrigation policy was last updated in 2012. The TOR for this activity was cleared just prior to the mission and the PIU is expected to conclude contracting of consultant and begin work prior to the next mission. On-farm demonstrations at four sites for rice varietal trials, improvement of water management techniques, and organic fertilizers (foliar and granular) was completed. Over 500 beneficiaries received training, contributing to the only results seen for FSRP Ghana to date. Irrigation. Irrigation Projects for Rehabilitation. The discussions highlighted an urgent need to accelerate the rehabilitation work. For the Kpong Irrigation Scheme (KIS) works, a rehabilitation of 4091 ha, a formal complaint was received on the evaluation of proposal submitted for this work. The PIU is responding to the complaints and expects a contract to be issued by June 2024. Again, this critical large procurement activity is delayed. For the Vea Irrigation Scheme (VIS), the activity is delayed as the WB had requested GIDA’s scoping document that justified the need for additional funds to complete part of the scope of work planned under the closed Ghana Commercial Agriculture Project (GCAP) and later taken up by the government. Information on the remaining needs for the redevelopment of the Left Bank canal of VIS and the justification for GIDA to conduct detailed study on the outstanding scope of works is to be shared with the WB. A field visit was made to the Weta Irrigation Scheme (WIS) that highlighted need for FSRP 3 These include (a) the Council for Scientific and Industrial Research (CSIR-CRI) Regional Center for Excellence (RCOE), (b) the Plant Genetic Resources Research Institute (CSIR-PGRRI), (c) Grains and Legumes Development Board (GLDB) seed lab, (d) Savannah Agriculture Research Institute (CSIR-SARI), (e) veterinary laboratories. 4 The irrigation activities detailed below are also considered community level ILM investments. 3 intervention to restore permanently flooded irrigable areas and improve infrastructure including main canal, major drains, lift pumps, and main canal access road. WIS management was advised to effectively engage the FSRP consultants (safeguards and engineering) to highlight current challenges for possible incorporation in design solutions. Development of Inland Valleys. Completion of the Engineering and Environmental and Social Impact Assessment (ESIA) studies are still ongoing since the last mission, for the 12 valleys in the Ashanti region (2000 ha), and 8 valleys in the Bono East region (5000 ha). The PIU will facilitate a guided tour of the proposed inland valleys for the WB Consultant on Irrigation before feasibility studies are completed. Clear timelines should be provided of all activities pertaining to the development of inland valleys under the FSRP. This is to indicate how soon the inland valleys can be put under cropping given that water retention structures, bunding, and land levelling activities can only be done during the dry season. 8. Component 3 (C3): Regional Food Market Integration and Trade. The implementation status of C3 activities is rated as Moderately Satisfactory. The component leads were advised to accelerate work under this component. The Matching Grant Manual (MGM) required for providing agribusiness grants has been under development for nearly two years and is delayed. The project has been requested to include realistic information assessing financials of applicants and finalize the manual to begin implementation prior to the next mission. The team was put in touch with IFC to receive advice on the type of financial information to request and assess. The project has also been advised to automate the application process for matching grants. On the proposed equipping and rehabilitation of 10 state-owned warehouses and the rehabilitation of border posts, the team has been advised to consider procurement timelines and expedite the commencement of works. The team was also requested to provide clear documentation on selection criteria and rankings of warehouses, border posts and markets. These should be kept as records to mitigate future complaints of selection biases. The work on rehabilitation is significantly delayed under this component. TORs for design and supervision of selected warehouses and border posts were submitted to the WB just prior to mission and have been reviewed and returned for further updates. It is unlikely that works would commence prior to the next mission. 9. Component 5 (C5): The implementation status of C5 is rated as Moderately Satisfactory. Project management is progressing well. The project has been requested to submit a revised workplan for lifetime of project by end-June 2024 or COSTTAB to reflect the changes made in project activities to reflect on- the-ground realities and reduce the flurry of activities not achieving results. The project is reminded that the AWPB must include all workshops to be held specifically: clearly stating the objectives of the workshop and proposed budget. The WB must be notified of future workshops which are not specific and/or cleared in the AWPB, else they will be treated as ineligible activities. 10. Financial Management (FM): The FM performance is rated as Satisfactory implying - minor shortcomings in FM exist but these do not prevent the timely and reliable provision of information required to manage and monitor the implementation of the project. There are adequate internal control arrangements (different levels of approval and authorizations) in place to ensure the safeguarding of project funds and assets. That said the key issues for management attention include: (i) the need to revise future AWPB to ensure more realism in the projected activities, particularly the timelines for the various activities and the likely dates for actual utilization of funds/expenditure; (ii) more effort is needed to address procurement processing to ensure adherence to planned timelines. It appears that the projected timelines are not consistent with the realities within the MoFA environment as regards approvals and various levels of authorization etc.; (iii) contract management – given that several significant value contracts have been signed, there is the need for the PIU to work to ensure contract delivery schedules are adhered to in order to convert the commitments to actual expenditure. If the above issues are not 4 adequately addressed by project management, it could affect the overall disbursement projections and possibly the pace of implementation. A detailed FM assessment is in Annex 3. 11. Procurement: The procurement performance is rated as Moderately Satisfactory, and the residual Procurement Risk is Substantial. Out of the total 64 planned activities (including PPA); 5 (7.8%) are completed, 44 (68.7%) are signed and ongoing, 9 (14.1%) are at pre-contract stage and 6 (9.4%) are yet to be initiated. This translates into a total commitment of US$ 38.3 million (49.7%) out of the estimated US$ 77.0 million. The PIU was advised to enhance contract management as majority of the procurement activities (68.7%) are at contract implementation. The PIU was also requested to submit updates on the activities with budget overruns, reported at the last mission, for the Bank’s review. The mission advised the PIU to always ensure adequate planning for the procurement of farming inputs for the next farming season to avoid the rush experienced in the procurement of the previous inputs. STEP Red-Flags: The mission noted the procurement status as reported does not match the status on STEP and advised the PIU to reconcile the actual progress with STEP and ensure real time STEP updates including the contract management module to clear all red flags on STEP. The mission agreed that all red flags will be cleared by the end of May 2024. Detailed procurement assessment is in Annex 4. 12. Environmental and Social (E&S) Risk Management: The environmental and social (E&S) performance rating of the project is Satisfactory. This rating is based on the significant progress made by the project in the implementation of agreed actions since the last mission in November 2023. The project has made good progress in the preparation of relevant E&S instruments including the Environmental and Social Impact Assessment (ESIA), Dam Safety Assessment (DSA) for several subprojects, and has undertaken training for implementing agencies in E&S risks and impacts management. The project is requested to develop an Environment and Social Management Plan (ESMP) checklist for the first cohort of Anchor Farmers in the PIS using the Ghana EPA permit conditions as one of the source documents. For the subsequent cohorts, the project should include the possession or preparation of relevant site-specific instruments as a selection criterion for the PIS. Also, the project is advised to clarify the tenurial arrangements at the in-land valley subproject sites and support farmers to formalize their tenurial arrangements. Detail findings on E&S risks and impacts management are in Annex 5. 13. Monitoring & Evaluation (M&E): The M&E performance rating of the project is Moderately Satisfactory. The team is commended for working with the WB M&E specialist to finally design a national Kobo toolbox-based M&E system and dashboard. The rollout of the M&E system and training for relevant data gathering parties is critical. The PIU presented the progress on each indicator and by component. Little progress has been observed so far using the output and outcomes indicators. Discussions revolved around the reference point for calculating some indicators and important clarifications to be made in the M&E plan's definitions to ensure an easy and common understanding of the indicators. The revised M&E plan is not completed but will be shared by the end of May 2024. The baseline data collection is completed, but the consultant has yet to share the report with the PIU. The latter has been tasked to follow up with the consultant to ensure timely submission. On the development of the national M&E system, the PIU completed and presented the set of digital questionnaires that will be used to register farmers and monitor activities. The PIU is left with completing the dashboard that will present in real-time the progress in key output and outcomes indicators calculated based on the data being reported. The PIU promised to complete this dashboard by the end of May. 14. The next implementation support mission will take place in November 2024. Agreed actions are summarized in Table 1. 5 ANNEX 1: May 2024 Mission AGREED ACTIONS Actions Responsible Due Date 2 Submission of revised project plan or COSTTAB PIU 30/06/2024 3 Submission of draft 2025 AWPB to WB after PIU 30/09/2024 MOFA clearance 4 Submission of revised 2024 AWPB with priority PIU 30/06/2024 activities and execution percentage 5 Ensure the completion of and submission of the PIU 30/05/2024 2023 Audit Report 6 Cashflow project and disbursement drawdown PIU 15/12/2024 to DA 7 Clearance of all red flags and outstanding items PIU 31/05/2024 on STEP 8 Finalization of procurement activities for climate, PIU 15/11/2024 pest and disease, and food security modules for MOFA 9 Sign Implementation Agreement with GMET PIU 05/06/2024 10 Procurement of Integrated Information System PIU for GMET 30/08/2024 13 Signing of MOU with CSIR PIU 30/06/2024 Re-submit TORs for CSIR & GLDB/ MOFA seed PIU 01/07/2024 centers for rehabilitation/ equipping 14 Complete recruitment of design and supervision PIU consultant for CSIR centers to be rehabilitated. 15/12/2024 16 Award of KIS contracts PIU 07/08/2024 17 Complete recruitment of ILM consultants PIU 15/11/2024 18 List of CSA technologies finalized, PIU 30/06/2024 List of landscape, community and beneficiary PIU 31/12/2024 level sub-projects finalized and under implementation 19 Finalization of feasibility studies for 12 Inland PIU 15/07/2024 Valleys in Ashanti Region 20 Finalization of feasibility studies for 8 Inland PIU 15/07/2024 Valleys in Bono Region 1st batch List of Inland Valleys prioritized for PIU 31/05/2024 development (based on visit with WB STC) submitted to Bank Complete Detailed Engineering Design Reports + PIU 15/07/2024 Engineering Drawings for 1st batch prioritized Inland Valleys (Ashanti & Bono East) and submit for Bank NO Recruitment of Works Contractors for 1st Batch PIU 31/12/2024 prioritized Inland valleys 6 Actions Responsible Due Date Meeting between WB and PIU to discuss and WB/ PIU 14/06/2024 agree on way forward for Vea outstanding scope of works Submit MOU (MoFA – GIDA) for update of PIU 15/06/2024 engineering design for outstanding scope of works at Vea for Bank clearance Finalize engineering designs for Vea Irrigation PIU/ GIDA 15/08/2024 Schemes and submit for WB NO Recruit contractor for completion of PIU 15/01/2025 rehabilitation of VIS 21 Complete recruitment Consultants for PIU 30/08/2024 engineering designs for Weta & Tanoso Irrigation Schemes Update Dam Safety Assessment for Tono 100,000 15/12/2024 Irrigation Scheme Prepare service providers and sign Framework agreement for Annual Inspection of 4 Dams 80,000 15/12/2024 (Tono, Vea, Tanoso & Weta) 22 Implementation of matching grants for PIU 15/07/2024 agribusiness underway. 23 Contracts awarded for both design and PIU 15/11/2024 supervision, and rehabilitation of warehouses 24 Contracts awarded for both design and PIU supervision, and rehabilitation of markets 31/12/2024 25 Contracts awarded for both design and PIU 15/11/2024 supervision, and rehabilitation of border posts 26 Submission and finalization of CERC Manual. PIU 15/06/2024 27 Finalization of Project Baseline and Impact PIU 15/06/2024 Evaluation. E&S Specific Actions. 28 Prepare ToR for GBV Specialist position and PIU 07/06/2024 submit to the Bank for review and clearance. 29 Finalize Gender Action Plan PIU 15/06/2024 30 Prepare ESMP checklist to cover the first cohort PIU 30/05/2024 of Anchor Farmers using the Ghana EPA Permit conditions as one of the source documents and submit for bank clearance.. 31 Conduct detailed documentation and analysis of PIU E&S team 20/06/2024 the land tenure systems operating in the area and share with the Bank for advice 32 Provide clarity on who is responsible for WB 15/06/2024 calculating greenhouse gas emission/estimation of the FSRP project-Ghana 33 Established grievance committees (GCs) at the PIU 30/06/2024 local, district and regional levels, train and 7 Actions Responsible Due Date provide them with contact lines and grievance register/logbooks in the Northern and Southern zones 34 Conduct stakeholder engagement activities with PIU E&S Team Ongoing implementing partners (IPs) at the Regional, Districts, and institutional levels in all the three zones 35 Continue strengthening capacity of IPs in E&S PIU Ongoing risk management. 8 ANNEX 2: Agreed list of actions from last ISM in November 2023 and status Actions Responsible Due Date Status 1 Finalization and submission of 2024 AWPB. PIU 15/12/2023 Done 2 Drawdown to project DA of US$ 50 million. PIU - FMS 30/01/2024 Done 3 Finalization of fertilizer restructuring of project WB 15/12/2023 Done 4 Procurement of inputs under fertilizer PIU 30/01/2024 Done restructuring 5 Post Procurement Review (PPR) of signed WB PMS 15/02/2024 Done contracts using incorrect procurement methods and exceeding estimated amounts by over 10%. 6 Cancellation and re-doing of procurement PIU 15/01/2024 Done activities on unsigned contracts discussed for risk of mis-procurement. 7 Complete engagement of external auditors to Project FMS 30/12/2023 Done, audit to start 1st commence audit in time to avoid delays. week of May 2024 8 Internal Audit of the MoFA to undertake an Head of 15/02/2024 Incomplete, to be Internal Audit Review of the Project. Internal carried out in June 2024 Audit and Project FMS 9 Recruitment of consulting firm for preparation PIU 15/01/2024 Cancelled by MOFA of concept note, SRS and TORs for the development of the GAAP. 10 Procurement and installation of 20 Automated PIU 30/01/2024 In progress, contract Weather Stations w/ GMET. signed 11 Workshop organized with ESA-GDA, MOFA and PIU 30/01/2024 Done GMET 12 Signed contract for KIS works. PIU 30/01/2024 Incomplete, formal complaint received 13 Finalization of feasibility studies for 12 Inland PIU 31/03/2024 In progress Valleys in Ashanti Region 14 Finalization of feasibility studies for 8 Inland PIU 31/05/2024 In progress Valleys in Bono Region 15 Commencement of update of engineering PIU 01/04/2024 Not done designs for Vea Irrigation Schemes 16 Commencement of update of engineering PIU 01/04/2024 Shortlist prepared designs for Weta & Tanoso Irrigation Schemes 17 Signed contracts with Poultry Anchor Farmers PIU 15/01/2024 Ongoing, under implementation in Poultry documentation being Intensification Scheme. finalized with MOFA 18 Recruitment of ILM consultants for areas 1, 2, PIU 15/04/2024 Incomplete, hiring and 3. process ongoing 19 Finalization of matching grants manual. WB/PIU 15/01/2024 Incomplete, latest version submitted to WB on 25/05/2024 9 Actions Responsible Due Date Status 20 Implementation of matching grants for PIU 1/03/2024 Not done agribusiness underway. 21 Submission and finalization of CERC Manual. PIU 30/01/2024 Not done 22 Finalization of Project Baseline and Impact PIU 28/02/2024 Ongoing, delayed Evaluation. 23 Finalization of assessment of 32 warehouses PIU 28/02/2024 Done, four selected for and selection of subset for rehabilitation. upgrade in consultation with PFJ2.0 E&S Specific Actions. 24 Provide phone lines and online system for FSRP PIU 30/01/2024 Done uptake of grievances 25 Train zonal offices and AEAs on the Gender FSRP PIU 05/03/2024 Not yet done, Action Plan establishment of zonal offices on hold, AEAs yet to be fully engaged 26 Obtain list of all GMET sites, prioritise, screen FSRP E&S 15/01/2024 Done and submit the screening report to the Bank Team for review and clearance 27 Appoint the part-time GBV Specialist in line FSRP PIU 05/03/2024 Ongoing with the ESCP 28 Revise the ToRs for the Veterinary Centre at FSRP PIU 15/01/2024 Done Dormaa to include waste treatment, safe and regular water supply and holding room for quarantine livestock and share with the Bank for review and clearance 29 Sensitise potential FSRP beneficiary farmers on FSRP E&S Ongoing Ongoing the requirements of E&S, in particular land Team documentation and labour management procedures 30 Submit revised Kpong Irrigation Scheme (KIS) FSRP E&S 15/01/2024 Done ESIA to the Bank for clearance Team 31 Conduct validation workshop with Feasibility FSRP PIU On-going Not due Team on the draft ESIA for the Vea Irrigation Scheme (VIS) and other schemes, as necessary 32 Complete ESIA for the Tanoso Irrigation FSRP E&S 30/04/2024 Ongoing Scheme (TaIS) Team 33 Conduct due diligence on all sites to FSRP PIU Ongoing Ongoing understand Ownership (Government/Customary/Deed/Title) and Tenurial Arrangement 34 Continue capacity building on ESRM FSRP PIU Ongoing Ongoing requirements for PIU, IAs, AEAs, WUAs etc. in collaboration with the world Bank and EPA 35 Continue community engagement & FSRP PIU Ongoing Ongoing sensitization 10 ANNEX 3: Financial Management The FM team participated in the mission and the main objective was to ensure that there are adequate FM system to support implementation. The focus of FM work during the mission included undertaking reviews to. i. Confirm if the project’s financial management arrangements as used to support the PPA and the following on project as designed are still adequate to support implementation. ii. Confirm if the project has satisfactorily complied with the financial covenants of submitting periodic Interim Financial Reports (IFRs). iii. Discussions on the first project audit due covering the PPA phase. iv. Review of 2024 AWP & Budget –to determine fund utilization, variances, to reflect more realistic cost estimates and revisions to projected cashflow requirements. v. Discuss any project related issues which have a direct impact on financial management Financial Management Systems Review and Performance The mission confirmed that as s per the original design, the financial management arrangements adopts a hybrid approach between mainstream (aspect of the country systems) and use of selected FM consultants. In addition, the project approval and authorisation are fully mainstreamed as part of the Govt’s approval and authorisation and payment processes within the respective implementing Including the PIU and other beneficiary agencies of MoFA. Our review confirms that these arrangements are still in place and the FM arrangements are adequate to support the follow-on project. Our review indicates that there are adequate and reliable financial management systems in place and in addition, the Accounts Team has the requisite blend of skills set and technical competency to support implementation. Compliance to Financial Covenants In terms of compliance with the financial covenants of submitting acceptable financial reports including i.e., quarterly IFRs and annual audits, the PIU, has since inception of the PPA complied fully with the covenants as stated in the Financing Agreement by submitting acceptable IFRs. The next IFR for the period ending March 2024, is not yet due. During the mission this was discussed to ensure the report is submitted on or before the due date of May 15th, 2024. With regards to the submission of audit reports, the project is yet to submit the first audit report covering both activities under the PPA and funds used from the follow-on credit. The audit report for the extended period ending December 2023 is due for submission to the WB on or latest by June 30th, 2024. As at the date of the mission, we were made to understand the audit process has commenced and the PIU provided assurances that the report will be submitted by the due date. Budget Utilization A review of the 2024 AWP indicated significant negative variances for all component and sub-components and an overall quarterly variance of less than 10% of projected budget. Several issues can be attributed to this, key amongst them include challenges in the procurement processes up to contract signing, administrative and beauracratic delays in processing and possibly an over ambitious budget and lack of realism in the budget figures and timelines. To address the above, the Bank recommended that the PIU takes a second look at the approved AWP and revise and submit a more realistic budget of which activities can be done during the rest of the year 11 and with a more realistic forecast. It must, however, be noted that some planned activities have been signed and it is expected that by the end of third quarter the expenditure may improve. Disbursements The project started with an initial project preparatory finance (PPF) which was signed on March 25th 2022 with an approved amount of US$2.08million. The follow-on credit (IDA 71950) was signed and declared effective June 5th 2023, and the client requested and received their initial allocation of US$10million in August 2023. As at the date of the mission the total amounts disbursed was US$62million representing a disbursement ratio of 41.40%. Conclusion In summary, based on, reviews of the quarterly financial statements and periodic statement of expenditure (SoE) etc, the conclusion is that financial management arrangements as assessed at the respective agencies as reviewed are adequate and satisfactory and meet the minimum requirement as per Bank Policy on Investment Project Financing (IPF) and confirms that there are adequate systems which can be relied upon to support implementation. The FM performance rating is rated as Satisfactory implying - minor shortcomings in FM exist but these do not prevent the timely and reliable provision of information required to manage and monitor the implementation of the project. The FM Risk rating is assessed to be Moderate and has not changed as documented in the PAD. There are adequate internal control arrangements (different levels of approval and authorizations) in place to ensure the safeguarding of project funds and assets. 12 ANNEX 4: Procurement Procurement Progress: All procurement activities have been cleared on STEP. Out of the total 64No. planned activities (including PPA); 5No. (7.8%) completed, 44No. (68.7%) signed and ongoing, 9No. (14.1%) at pre-contract stage and 6No. (9.4%) yet to be initiated. This translates into a total commitment of US$ 38.3 million (49.7%) out of the estimated US$ 77.0 million. The PIU was advised to enhance contract management as majority of the procurement activities (68.7%) are at contracts implementation. The PIU was also requested to submit before the end of the mission updates on the activities with budget overruns, reported at the last mission, for the Bank’s perusal. The mission advised the PIU to always ensure adequate planning for the procurement of farming inputs for the next farming season to avoid the rush experienced in the procurement of the previous inputs. STEP Red-Flags: The mission noted the procurement status as reported does not match the status on STEP and advised the PIU to reconcile the actual progress with STEP and ensure real time STEP updates including the contract management module to clear all red flags on STEP. The mission agreed that all red flags will be cleared by May 30, 2024. High Value Contracts: (i) Kpong Irrigation Systems Upgrade Works [US$20 million]: Combined evaluation of technical and financial evaluation have been completed but PIU to resolve complaint submitted before proceeding with the selection process. (ii) Supply of Inputs for Small-Holder Farmers [US$40 million]: Contracts for the supply of all the inputs have been signed and distribution of the inputs ongoing. (iii) The PIU was advised to initiate the procurement process to engage NGOs to support the implementation of ILM estimated at US$ 6 million. Procurement Related Complaints: The mission noted the complaints submitted for the Kpong Irrigation Systems Upgrade works procurement and advised the PIU the complaints must be resolved before the procurement process can continue. The PIU was also advised to ensure confidentiality in the procurement processes to avoid leakage of information related to the procurement processes. FY24 PPR: The mission informed the project that FY24 PPR is being conducted by the Ghana Audit Services and the final report will soon be shared with the project for implementation of the recommended actions if any. Based on discussions, reviews, and findings during the mission, the residual Procurement Risk is Substantial, and the Procurement Performance is Moderately Satisfactory. 13 ANNEX 5: Environmental and Social Risk Management Framework The environmental and social (E&S) performance rating of the project is Satisfactory (S). This rating is based on the significant progress made by the client in the implementation of agreed actions since the last mission in November 2023. The project has made good progress in the preparation of relevant E&S instruments including the Environmental and Social Impact Assessment (ESIA), Dam Safety Assessment (DSA) for several subprojects, and has undertaken training for implementing agencies in E&S risks and impacts management. Going forward, client is requested to develop an ESMP checklist for the first cohort of Anchor Farmers that will be supported through the Poultry Intensification Scheme using the Ghana EPA permit conditions as one of the source documents. For the subsequent cohorts, clients should include the possession or preparation of relevant site-specific instruments as a selection criterion for the Poultry Intensification Scheme. Also, client is advised to clarify the tenurial arrangements at the in-land valley subproject sites and support farmers to formalize their tenurial arrangements. Preparation of E&S Instruments: The Mission noted that the client has finalized and disclosed the Environmental and Social Impact Assessment (ESIA) for the rehabilitation of the Kpong Irrigation Scheme (KIS) and civil works will soon begin. The ESIAs for the rehabilitation of Vea and Tanoso Irrigation Schemes are both at the draft stage while that for the rehabilitation of Weta Irrigation Scheme is at the Scoping Stage. Preparation of ESIAs and Environmental and Social Management Plans (ESMPs) for the selected in- land valleys is at various stages: (a) Lot 1 – Ashanti Region: the Scoping Report is being drafted; (b) Lot 2 – Ashanti Region: the Scoping Report is submitted to the Environmental Protection Agency (EPA) for review and clearance; (c) Lot 3 – Ashanti Region: the EPA has reviewed and cleared the Scoping Report and preparation of ESIA is underway; (d) Bono East Region: the EPA has reviewed and cleared the Scoping Report and preparation of ESIA is underway. On Dam Safety Assessment (DSA), the client has shared with the Bank a recent DSA conducted by the Volta River Authority (VRA) for the Kpong Dam. The Bank has reviewed and provided comments to the client. The Bank is currently reviewing a draft DSA report for the Vea Dam while the preparation of DSA for Tanoso and Weta dams are at the inception stage. Grievance Mechanism: Client has established grievance committees (GCs) at the local, district and regional levels, completed training, and provided them with phone lines and grievance register/logbooks in the Middle Belt (Ashanti, Bono and Bono East Regions). Client is set to continue establishing the GCs in the two remaining zones (Northern and Southern Belts) in the second quarter of 2024. Stakeholder Engagement: Client has continued with stakeholder engagement activities with implementing partners (IPs) at the regional, districts, and institutional levels in all the three zones. Capacity building and Training: Client has equipped various stakeholders with information and skills on environmental and social risk management through capacity building and training in specific areas, in particular some 22 IPs comprising Agricultural Extension Agents (AEAs), Researchers and private sector were trained. Based on the findings, the mission made the following recommendations to improve E&S risk management. 1. E&S Instruments for Anchor Farmers for Poultry Intensification Scheme: The project is about to sign contracts with selected Anchor Farmers for the Poultry Intensification Scheme. Given the nature and scale of production of the Anchor Farmers, each farmer will at least need an ESMP, to meet project E&S requirements. However, the project, as part of the selection criteria for the 14 Anchor Farmers, did not include possession or preparation of site-specific E&S instruments as a selection criterion but rather included acquisition of the EPA permit. In order not to slow down progress on this activity, the mission agreed that client should prepare an ESMP checklist to cover this first cohort of Anchor Farmers using the Ghana EPA Permit conditions as one of the source documents. For the subsequent cohorts, the Anchor Farmers should be required to prepare site-specific instruments. 2. MoU for land acquisition: Client reported preparing land agreements to engage landowners in the in-land valleys. However, the mission noted that given the differences in land tenure systems operating in the areas, an MoU may not be the appropriate instrument. The mission thus recommended that client should conduct detailed documentation and analysis of the land tenure systems operating in the area and share with the Bank for advice. The mission further recommends that client seeks advice from their legal team on the appropriate land documents to be applied. 3. GBV Specialist: Client reported they were seeking to appoint a part-time GBV Specialist. The mission noted that given the gender mix and the project requirement for 40% women involvement, there may be a need to combine gender mainstreaming with that of gender-based violence prevention and mitigation role. In this light and also the fact that the ESCP requires a part-time GBV Specialist as part of the PIU, the mission recommended a part-time position for the GBV Specialist and the terms of reference (TOR) for the position should include the responsibility for gender mainstreaming. The TOR should be prepared on or before June 07, 2024, and shared with the Bank for clearance. 4. Gender Action Plan: The Gender action plan for the project has been prepared but in draft and has not been cleared by the Bank. The Mission recommended that the plan should be sent to the Bank for clearance. 5. Greenhouse Gas Estimation: Client requested Bank’s support to strengthen capacity in Greenhouse Gases (GHG) accounting and monitoring. The Bank did not object to this request. The Bank will provide clarity to the client on who does the GHG estimation i.e., the Bank or client. 6. The mission recommended that client should present data in gender disaggregated format. 15 ANNEX 6: List of Procurement Activities to be completed by the next mission. Intended Contract Contract S/N Description of Activity Completion mount (USD) Signed Date Date GOODS Supply and distribution 150 no. motorbikes to 1 9,000,000 19-Jun-24 17-Sep-24 Agric Extension Officers for FSRP. Procurement of 3000 no. tablets and 327no. 2 1,960,000 19-Jun-24 17-Sep-24 laptops for AEAs and other MOFA units Production of footages/ video documentaries of 3 baseline conditions of facilities to be 50,000 18-Sep-24 15-Feb-25 rehabilitated by project Procurement of fixtures & furnishings for PIU & 4 97,000 18-Sep-24 17-Nov-24 Zonal Offices Procurement of Office equipment & furnishings 5 60,000 18-Sep-24 17-Nov-24 for FSRP Zonal offices Supply of equipment for on-farm demonstration 6 12,000 18-Sep-24 17-Dec-24 for 3 target areas Supply and installation of software for 7 2,800,000 18-Nov-24 18-Mar-25 harmonization of GMET operations Establishment of Network Operation Centre for 8 4,700,000 18-Nov-24 18-Mar-25 MOFA- Data centre and networking equipment Procure and instal 2,500m2 greenhouses for 9 100,000 30-Aug-24 30-Sep-24 multiplication of tomato hybrid seeds Procurement of agro-inputs for production 10 support & adaptive trial of hybrid tomatoes 200,000 30-Aug-24 30-Sep-24 seeds 11 Machinery such as seed extractors, small power 150,000 30-Aug-24 30-Sep-24 tillers, and equipment for drip irrigation CONSULTANCIES Recruitment of consultants for the design and 12 construction supervision of veterinary 450,000 19/06/2024 09/06/2026 laboratories in Accra and Dormaa 16 Intended Contract Contract S/N Description of Activity Completion mount (USD) Signed Date Date Consultancy Service for the Update of Engineering Design and Construction 13 790,000 18-Sep-24 08-Sep-26 Supervision for the Rehabilitation of the Tanoso Irrigation Scheme (TaIS) Consultancy for design and construction 14 supervision of rehabilitation of WETA irrigation 750,000 18-Sep-24 08-Sep-26 scheme (WIS) RECRUITMENT OF AN INDIVIDUAL CONSULTANT 15 ON AN AS NEEDED BASIS AS LEGAL COUNSEL TO 36,000 19/06/2024 09/06/2026 PROVIDE LEGAL SERVICES TO FSRP Recruitment of Consultant to Prepare engineering designs & bidding documents for 16 350,000 18-Sep-24 08-Sep-26 upgrade of CSIR- CRI (RCoE), PGRRI & GLBD Labs -Design and supervision Recruit consultant (to prepare engineering desings & bidding documents, & supervise 17 90,000 18-Sep-24 08-Sep-26 rehabilitation) of Rhizobium Innoculant Production Facility 18 Recruitment of ILM Consultants target Areas 1 2,000,000.00 18-Sep-24 08-Sep-26 19 Recruitment of ILM Consultants target Areas 2 2,000,000.00 18-Sep-24 08-Sep-26 20 Recruitment of ILM Consultants target Areas 3 2,000,000.00 18-Sep-24 08-Sep-26 Recruitment of Consultant to Update/ revise 21 National Irrigation Policy & Strategic Plan for 30,000 15-Mar-24 13-Jul-24 GIDA Design and Supervison consultants for 22 100,000 15-Mar-24 13-Jul-24 rehabiliation of storage facilities (4 no.) Consulting Service for the Feasibility Studies, 23 Engineering Design and Supervision of 40,000 18-Sep-24 15-Feb-25 Installation of Irrigation System for WACCI Update Dam Safety Assessment for Tono 24 100,000 15-Nov-24 30-Jun-25 Irrigation Scheme Prepare service providers and sign Framework 25 agreement for Annual Inspection of 4 Dams 80,000 15-Nov-24 30-Jun-25 (Tono, Vea, Tanoso & Weta) WORKS 17 Intended Contract Contract S/N Description of Activity Completion mount (USD) Signed Date Date Completion of rehabilitation of KIS (Irrigation 25 20,000,000 19-Jul-24 04-Jul-27 and drainage system, road network etc. 26 Rehabilitation of Zonal Offices (3) 120,000 18-Sep-24 15-Feb-25 Construction of Selected Inland Valleys (8 nr) for 27 64,000,000 19-Sep-24 04-Sep-27 selected Areas Construction of rehabilitation of VIS (Irrigation 28 12,000,000 19-Sep-24 04-Sep-27 and drainage system, road network etc for Vea) Provision and equiping of Border Post cabins 29 400,000 18-Sep-24 16-May-25 and at selected zone for FSRP 18 ANNEX 7: List of Participants NO. NAME DESIGNATION ORGANIZATION 1 Osei Owusu-Agyeman Project Coordinator FSRP PIU 2 Philip Daniel Laryea Operations Manager FSRP PIU 3 Ben Johnson Financial Management FSRP PIU Specialist 4 Allswell Okai Agricultural Economist FSRP PIU 5 Bloomfield Attipoe Infrastructure Engineer FSRP PIU 6 Geoff Anno Monitoring & Evaluation FSRP PIU Specialist 7 Emelda Adii Environmental Specialist FSRP PIU 8 Adu Nyarko Andorful Social Specialist FSRP PIU 9 Ing. Daniel N.A Mensah Information Technology FSRP PIU Specialist 10 Kwadwo Gyamera-Antwi Procurement Specialist FSRP PIU 11 Emmanuel Ankrah Communications & FSRP PIU Knowledge Management Specialist 12 Charles Yamoah Contract Management Officer FSRP PIU 13 Ebenezer Armah Monitoring & Evaluation FSRP PIU Officer 14 Margaret Opoku Agyeman Agribusiness Officer FSRP PIU 15 Moses Alan Adama Information Technology FSRP PIU Assistant 16 John Woledzi Prin. Economics Officer MOF 17 Joseph Tommy Tommie Dep Director MOFA-PPMED 18 Godfred Antwi Snr Agricultural Economist MOFA/PPMED 19 Ashwini Sebastian Task Team Leader World Bank 20 Nneka Okereke Senior Social Development World Bank Specialist 21 George Amoasah Environmental Specialist World Bank 19 NO. NAME DESIGNATION ORGANIZATION 22 Buniyaminu Abdul Kadiri Senior Procurement Specialist World Bank 23 Robert De Graft Hanson Senior Financial Management World Bank Specialist 24 Mariatu Margaret Sankoh Team World Bank 25 Tharcisse Guedegbe Agriculture Economist World Bank 26 Bernard D. Moro Consultant World Bank 27 Abdulai Darimani Social Development World Bank Consultant 28 Bernard Maweudzro Scheme Manager Weta Irrigation Scheme- Volta Region 29 Samuel Ofori Kumi Asst. Operation Manager Weta Irrigation Scheme- Volta Region 30 Emmanuel Yorla Accountant Weta Irrigation Scheme- Volta Region 31 Joseph A. Mensah Scheme Engineer Weta Irrigation Scheme- Volta Region 32 Daniel a. Dompreh Agronomist Weta Irrigation Scheme- Volta Region 33 Wonder Nwekpor WUA Leader- Farmer WETA- Volta Region 34 Gabriel Nusenu WUA Leader - Farmer WETA- Volta Region 35 Yohanes Fiagah WUA Leader -Farmer WETA – Volta Region 36 George Dalete WAU Leader Volta Region 37 Francis Nanewortor Farmer WETA- Volta region 38 Charles Awodi Farmer WETA – Volta Region 39 Sampson Nuwortsn Farmer WETA – Volta Region 40 Agoha Celestine Queen Mother- Woman AWOPA – Women group- WETA Volta Region Leader 41 Beatrice Avusuglo Business woman/Farmer AWOPA – Women group- WETA Volta Region 42 Comfort Aklorboktu Business woman/Farmer AWOPA – Women group- WETA Volta Region 43 Mishiwo Faustina Business woman/Farmer AWOPA – Women group- WETA Volta Region 44 Belinda Niboh Business woman/Farmer AWOPA – Women group- WETA Volta Region 20 ANNEX 8: BRIEF ON INPUT DISTRIBUTION TO FLOOD VICTIMS AND OTHER VULNERABLE FARMERS 1.0 Introduction In October 2023, the Volta River Authority (VRA) began spilling water from the Akosombo Dam to protect it from overtopping. The influx of water raised the Volta River levels, causing flooding to low-lying areas along the Volta Lake and its tributaries. These resulted in the loss of farm produce and livestock, the main livelihood of affected farmers. As part of effort to alleviate the economic hardship on affected farmers, the Ministry of Food and Agriculture through the Food Systems Resilient Project funded by the World Bank is supporting affected flood victims and non-flood victims with inputs comprising NPK and Urea fertilizers, weedicide, improved seeds of maize, rice, tomato, pepper and onion. This brief provides information on pilot input distribution to flood victims carried to the North Tongu, Adidome, Anlo, Keta and Ketu South districts from 22nd to 26th April 2024. 2.0 Input package In all, maize and rice farmers received inputs to cultivate one acre each while vegetable farmers received inputs to cultivate half an acre each. The following were the approved input packages per farmer for the various crops: i. Maize farmers 3 bags (50kg) of NPK (one acre) 1 bag Urea 10kg of improved maize seeds 1 Litre weedicide (pre-emergence) 1 Litre weedicide (post emergence) ii. Rice farmers 2 bags (50kg) of NPK (one acre) 1 bag Urea 40kg of improved rice seeds I Litre weedicide (pre-emergence) 1 Litre weedicide (post emergence) iii. Pepper farmers 1 bag (50kg) of NPK ((half an acre) 1 bag Urea 50g of improved pepper seeds 21 0.5 Litre weedicide (pre-emergence) 0.5 Litre weedicide (post emergence) iv. Tomato farmers 1 bag (50kg) of NPK ((half an acre) 1 bag Urea 50g of improved tomato seeds 0.5 Litre weedicide (pre-emergence) 0.5 Litre weedicide (post emergence) v. Onion Farmers 1 bag (50kg) of NPK ((half an acre) 1 bag Urea 80g of improved rice seeds 0.5 Litre weedicide (pre-emergence) 0.5 Litre weedicide (post emergence) 3.0 Pilot Input Distribution Process Prior to the visit, the list of flood victims originally received from the districts was categorized into various crop type since it was not disaggregated. Based on the disaggregation, the specific number of farmers that need specific seed type and the corresponding fertilizers and weedicide was determined. The IT team of MoFA has uploaded various input types on the newly developed Ghana Agricultural Agribusiness Platform (GhAAP). The list of affected flood victims has also been uploaded onto the platform. Modalities for Delivery to farmers The following processes are then carried out until a farmer receives his or her pack of inputs: Role Setup: Three key actors are designated: • Administrator – An Officer I: Responsible for confirming beneficiary names and matching them with their Ghana Card numbers on the beneficiary list. • Aggregator (District Director): Acts as an aggregator on the platform, logs into the aggregator app to request inputs on behalf of the farmers and approving these requests for further processing. • Distribution Shop – An Officer II: Receives approved requests and fulfils them, confirming the delivery of inputs to the aggregator for pick up. • Aggregator's Final Confirmation: After the distribution shop processes the order, the aggregator confirms the pick-up on their dashboard (the aggregator app). The aggregator then confirms the delivery by taking pictures of the beneficiaries with their received inputs and submits these records. Following the above, input suppliers were directed to supply inputs to the respective District Departments of Agriculture with the District Directors as recipients. 3.1 Total Input Distributed: 22 For the entire 5-day period, a total of 119 maize farmers (62 men and 57 women) in the North Tongu district (Mepe township) received 357 NPK bags and 119 Urea bags of 50kg each. This can be verified on the GhAAP. 4.0 Challenges with Pilot Process i. The input distribution process using the app seemed to be time consuming. ii. Poor network connection adds to the delay in serving a farmer. iii. All districts visited have received part of comprehensive input package (NPK and Urea) iv. The farmers incurred transportation cost to and from their respective communities to receive inputs. v. Delays in receipt of other inputs from suppliers. 5. 0 Way Forward a) Following the above observation, the District Directors were asked to temporally suspend the distribution process, until all the inputs earmarked for a district have been received. This is to minimize the transportation cost incurred by the farmers. b) Input suppliers were directed to complete supply of inputs by May 20, 2024. c) Distribution of inputs to affected farmers will re-commence on Wednesday 22nd May 2024 with the Hon. Minister for Food and Agriculture in attendance. d) The developers of GhAAP have improved the input distribution process on the app. e) District Directors have been informed to apply internal audit system at the district level to the inputs received. f) Revised input package has been revised upwards to adequately compensate farmers for their losses. The revision considers the following: o Two acres worth of inputs for maize (20kg of maize seeds, 6 NPK bags, 2 Urea bags, 2 litres of pre-emergence weedicide, 2 litres of post-emergence weedicide), o Two acres for rice (80 kg of maize seeds, 4 NPK bags, 2 Urea bags, 2 litres of pre-emergence weedicide, 2 litres of post-emergence weedicide). o One acre for tomato (100g seeds, 2 NPK bags, 2 Urea bags, 2 litres of pre-emergence weedicide and 2 litres of post-emergence weedicide) o One acre for pepper (100g seeds, 2 NPK bags, 2 Urea bags, 2 litres of pre-emergence weedicide and 2 litres of post-emergence weedicide) o One acre for onion (200g seeds, 2 NPK bags, 2 Urea bags, 2 litres of pre-emergence weedicide and 2 litres of post-emergence weedicide) g) A team comprising officers from the Policy Planning, Monitoring & Evaluation Directorate (PPMED; Directorate of Crop Services (DCS), Plant Protection & Regulatory Services Directorate 23 (PPRSD), Directorate of Agriculture Extension Services (DAES), Internal Audit and Procurement of MoFA have been formed to oversee the input distribution activities. 24