FOR OFFICIAL USE ONLY Report No: PADHP00114 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROGRAM APPRAISAL DOCUMENT ON A PROPOSED LOAN IN THE AMOUNT OF EUR 230.1 MILLION (US$250 MILLION EQUIVALENT) TO THE KINGDOM of MOROCCO FOR THE TRANSFORMING AGRI-FOOD SYSTEMS IN MOROCCO PROGRAM November 26, 2024 Agriculture and Food Global Practice Middle East And North Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective {October 31, 2024}) Currency Unit = MAD EURO 0.92 = US$1 EURO 1 = MAD 10.69 MAD 1 = EUR 0.09 FISCAL YEAR January 1 - December 31 Regional Vice President: Ousmane Dione Regional Director: Meskerem Brhane Country Director: Ahmadou Moustapha Ndiaye Practice Manager: Rabih H. Karaky Task Team Leader(s): Remi Trier, Nabila Gourroum ABBREVIATIONS AND ACRONYMS ACG Anti-Corruption Guidelines ADA Agricultural Development Agency (Agence pour le Développement Agricole) AFD French Development Agency (Agence Française de Développement) AgroTech Agrotechnologies Association of Souss Massa (Association Agrotechnologies du Souss Massa) BCH Communal Hygiene Offices (Bureaux Communaux d’Hygiène) CA Conservation Agriculture (Agriculture de conservation) CCDR Country Climate and Development Report CNRG National Center for Genetic Resources (Centre National de Ressources Génétiques) COPIL Steering Committee (Comité de Pilotage) COMADER Moroccan Confederation of Agriculture and Rural Development (Confédération Marocaine de l’Agriculture et de Développement Rural) COVID-19 Coronavirus Disease 2019 CP Convention between the Government of Morocco and the value chain organizations / Interprofessions (Contrat-programme) CPF Country Partnership Framework CRI Corporate Results Indicator CY Calendar Year DAAJ Administrative and Legal Affairs Department (Direction des Affaires Administratives et Juridiques) DDFP Directorate for the Development of Value Chains (Direction du Développement des Filières de Production) DEFR Directorate for Education, Training and Research (Direction de l’Enseignement, de la Formation et de la Recherche) DF Directorate of Finance (Direction Financière) DFIL Disbursement and Financial Information Letter DGCT Directorate-General for Local Authorities (Direction Générale des Collectivités Territoriales) DLI Disbursement Linked Indicator (Indicateur Lié au Décaissement) DLR Disbursement Linked Result (Résultat Lié au Décaissement) DPA Provincial Directorate of Agriculture (Direction Provinciale de l’Agriculture) DRA Regional Directorate of Agriculture (Direction Regionale de l’Agriculture) DSS Directorate for Strategy and Statistics (Direction de la Stratégie et des Statistiques) EFA Economic and Financial Analysis EIRR Economic internal rate of return EU European Union ESSA Environmental and Social Systems Assessment FM Financial Management FAO Food and Agriculture Organization of the United Nations FDA Agriculture Development Fund (Fonds de Développement Agricole) FIFEL Interprofessional Federation of Fruit and Vegetable production and export (Fédération Interprofessionnelle Marocaine de Production et d’Exportation de Fruits et Légumes) FLW Food Loss and Waste G1 Pre-basic seed first generation G2 Pre-basic seed second generation GDP Gross Domestic Product GGS Green Generation Strategy (Stratégie Génération Green) GHG Greenhouse Gas GoM Government of Morocco (Gouvernement du Maroc) GRS Grievance Redress Service HPC High price of carbon scenario IA Intervention Area IAV Hassan II Institute of Agronomy and Veterinary Medicine (Institut Agronomique et Vétérinaire Hassan II) IBRD International Bank for Reconstruction and Development IFC International Finance Corporation IGA General Inspection of Agriculture (Inspection Générale de l’Agriculture) IGAT General Inspection of Territorial Administration (Inspection Générale de l’Administration Territoriale) IGF General Inspectorate of Finances (Inspection Générale des Finances) INRA National Institute for Agricultural Research (Institut National de la Recherche Agronomique) INTERPROLIVE Moroccan Interprofessional for Olive ( Interprofession marocaine de l’olive) IPF Investment Project Financing LPC Low price of carbon scenario MAD Moroccan Dirham MAMDA Moroccan Agricultural Mutual Insurance Company (Mutuelle Agricole Marocaine d'Assurances) MAPMDREF Ministry of Agriculture, Fisheries, Rural Development, Water and Forests (Ministère de l'Agriculture, de la Pêche Maritime, du Développement Rural et des Eaux et Forêts) M&E Monitoring and Evaluation MEF Ministry of Economy and Finance (Ministère de l’Economie et des Finances) MFD Maximizing Finance for Development MI Ministry of Interior (Ministère de l’Intérieur) Morocco Agency for Export Coordination and Control (Etablissement Autonome de Foodex Coordination et de Contrôle des Exportations) MRC Multi-Climate-Risk Field Crops Program (Multi-Risques Climatique) MSPS Ministry of Health and Social Protection (Ministère de la Santé et de la Protection Sociale) MT Metric Ton NDC Nationally Determined Contribution NPV Net present value NT No-Tillage OH One Health Approach ONCA National Office for Agricultural Extension (Office National du Conseil Agricole) ONSSA National Office of Food Safety (Office National de Sécurité Sanitaire des Produits Alimentaires) ORMVA Regional Office for Agricultural Development (Office Régional de Mise en Valeur Agricole) PA Productive Alliance PAP Program Action Plan PCM Private Capital Mobilized PCRA Program for Climate Resilience and Adaptation PDO Program Development Objective PforR Program-for-Results PLR Program and Learning Review Report PMU Program Management Unit PMV Green Morocco Plan (Plan Maroc Vert) POM Program Operational Manual RA Results Area R&D Research & Development RF Results Framework RNA Agricultural National Register (Registre National de l’Agriculture) SISCA Agricultural Season Monitoring Information System (Système d'Information de Suivi de la Campagne Agricole) SONACOS National Seed Commercialization Company (Société nationale de commercialisation des semences) SORT Systematic Operations Risk-Rating Tool TA Technical Assistance ToC Theory of Change VDPA Valorisation of Agricultural Plastic Waste in Souss-Massa Platform (Valorisation des Déchets Plastiques Agricoles) US$ United States Dollars WB World Bank The World Bank Transforming Agri-food Systems in Morocco Program (P181587) TABLE OF CONTENTS DATASHEET ...................................................................................................................................i I. STRATEGIC CONTEXT ............................................................................................................. 1 A. Program Strategic Context ..........................................................................................................1 B. Sectoral and Institutional Context ...............................................................................................1 II. PROGRAM DESCRIPTION ....................................................................................................... 4 A. Program Development Objective(s) (PDO)..................................................................................4 B. Theory of Change and PDO Indicators.........................................................................................4 C. PforR Program Scope: ..................................................................................................................6 D. Disbursement Linked Indicators ............................................................................................... 13 E. Role of Partners ........................................................................................................................ 14 F. Lessons Learned and Reflected in the Program Design ............................................................ 14 III. PROGRAM IMPLEMENTATION ............................................................................................. 14 A. Institutional and Implementation Arrangements .................................................................... 14 B. Results Monitoring and Evaluation, and Verification Arrangements ....................................... 16 C. Disbursement Arrangements.................................................................................................... 16 IV. PROGRAM ASSESSMENTS SUMMARY .................................................................................. 17 A. Technical ................................................................................................................................... 17 B. Fiduciary.................................................................................................................................... 21 C. Environmental and Social ......................................................................................................... 22 D. IPF appraisal ............................................................................................................................. 23 E. Program Action Plan ................................................................................................................. 24 V. RISKS .................................................................................................................................. 25 ANNEX 1. RESULTS FRAMEWORK ................................................................................................ 26 ANNEX 2. DETAILED EXPENDITURE FRAMEWORK, ADDITIONAL INFORMATION ON BENEFICIARIES AND SEQUENCING .......................................................................................................... 46 The World Bank Transforming Agri-food Systems in Morocco Program (P181587) @#&OPS~Doctype~OPS^dynamics@padpfrbasicinformation#doctemplate DATASHEET BASIC INFORMATION Project Beneficiary(ies) Operation Name Morocco Transforming Agri-food Systems in Morocco Does this operation have an IPF Environmental and Social Risk Operation ID Financing Instrument component? Classification (IPF Component) Program-for-Results P181587 Yes Low Financing (PforR) @#&OPS~Doctype~OPS^dynamics@padpfrprocessing#doctemplate Financing & Implementation Modalities [ ] Multiphase Programmatic Approach (MPA) [ ] Fragile State(s) [ ] Contingent Emergency Response Component (CERC) [ ] Fragile within a non-fragile Country [ ] Small State(s) [ ] Conflict [ ] Alternative Procurement Arrangements (APA) [ ] Responding to Natural or Man-made Disaster [ ] Hands-on Expanded Implementation Support (HEIS) Expected Approval Date Expected Closing Date 19-Dec-2024 31-Dec-2029 Bank/IFC Collaboration Joint Level Yes Complementary or Interdependent project requiring active coordination Proposed Program Development Objective(s) The PDO is to increase the agrifood system's resilience to climate change and strengthen food safety and quality. @#&OPS~Doctype~OPS^dynamics@padborrower#doctemplate i The World Bank Transforming Agri-food Systems in Morocco Program (P181587) Organizations Borrower: Kingdom of Morocco / Ministry of Economy and Finance Contact Title Telephone No. Email Mohamed Coordinator of 212673995278 m.elgholabzouri@tresor.finances.gov.ma Elgholabzouri Relationship with the WBG Implementing Agency: Ministry of Agriculture, Maritime Fisheries, Rural Development, Water and Forests (MAPMDREF) Contact Title Telephone No. Email Redouane Arrach General Secretary 212657831993 r.arrach@agriculture.gov.ma @#&OPS~Doctype~OPS^dynamics@padfinancingsummary#doctemplate COST & FINANCING (US$, Millions) Maximizing Finance for Development Is this an MFD-Enabling Project (MFD-EP)? Yes Is this project Private Capital Enabling (PCE)? No SUMMARY Government program Cost 802.30 Total Operation Cost 312.00 Total Program Cost 309.37 IPF Component 2.00 Other Costs (Front-end fee,IBRD) 0.62 Total Financing 312.00 Financing Gap 0.00 Financing (US$, Millions) World Bank Group Financing International Bank for Reconstruction and Development (IBRD) 250.00 Non-World Bank Group Financing Counterpart Funding 35.00 Borrower/Recipient 35.00 ii The World Bank Transforming Agri-food Systems in Morocco Program (P181587) Commercial Financing 27.00 Unguaranteed Commercial Financing 27.00 @#&OPS~Doctype~OPS^dynamics@paddisbursementprojection#doctemplate Expected Disbursements (US$, Millions) WB Fiscal Year 2025 2026 2027 2028 2029 2030 Annual 85.00 50.00 45.00 30.00 30.00 10.00 Cumulative 85.00 135.00 180.00 210.00 240.00 250.00 @#&OPS~Doctype~OPS^dynamics@padclimatechange#doctemplate PRACTICE AREA(S) Practice Area (Lead) Contributing Practice Areas Finance, Competitiveness and Innovation; Health, Agriculture and Food Nutrition & Population CLIMATE Climate Change and Disaster Screening Yes, it has been screened and the results are discussed in the Operation Document @#&OPS~Doctype~OPS^dynamics@padrisk#doctemplate SYSTEMATIC OPERATIONS RISK- RATING TOOL (SORT) Risk Category Rating 1. Political and Governance  Low 2. Macroeconomic  Moderate 3. Sector Strategies and Policies  Moderate 4. Technical Design of Project or Program  Substantial 5. Institutional Capacity for Implementation and Sustainability  Moderate 6. Fiduciary  Moderate 7. Environment and Social  Moderate 8. Stakeholders  Moderate iii The World Bank Transforming Agri-food Systems in Morocco Program (P181587) 9. Overall  Moderate @#&OPS~Doctype~OPS^dynamics@padpfrcompliance#doctemplate POLICY COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? [ ] Yes [✓] No Does the project require any waivers of Bank policies? [ ] Yes [✓] No Legal Operational Policies Triggered? Projects on International Waterways OP 7.50 No Projects in Disputed Area OP 7.60 No ENVIRONMENTAL AND SOCIAL Environmental and Social Standards Relevance Given its Context at the Time of Appraisal 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 Not Currently Relevant ESS 4: Community Health and Safety Not Currently Relevant ESS 5: Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Not Currently Relevant ESS 6: Biodiversity Conservation and Sustainable Management of Living Natural Not Currently 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 iv The World Bank Transforming Agri-food Systems in Morocco Program (P181587) NOTE: For further information regarding the World Bank’s due diligence assessment of the Project’s potential environmental and social risks and impacts, please refer to the Project’s Appraisal Environmental and Social Review Summary (ESRS). @#&OPS~Doctype~OPS^dynamics@padlegalcovenants#doctemplate LEGAL Legal Covenants Sections and Description Ref. section I.A.1(a) of Schedule 2: no later than thirty (30) days after the Effective Date, or such later date as agreed by the Bank, establish within the DSS and thereafter maintain, through the implementation of the Operation, a Program Management Unit (“PMU”), responsible for the overall implementation, coordination, management, monitoring and evaluation of the Operation (including the consolidation of Program Reports and Project Reports, and financial statements), and staffed with adequate professional, fiduciary, administrative and technical personnel, with qualifications, experience and terms of employment acceptable to the Bank; said PMU to also serve as the secretariat of the Steering Committee; all as further described in the POM. Ref. Section I.A.1(b) of Schedule 2: no later than thirty (30) days after the Effective Date, or such later date as agreed by the Bank, establish and thereafter maintain, throughout Program implementation, a Steering Committee, chaired by the MAPMDREF and composed of relevant Borrower’s ministries and institutions, including the MAPMDREF, the MEF, the MHSP and the MI (including the relevant Walis), responsible for strategic oversight and guidance under the Program, all under terms and conditions acceptable to the Bank and described in the POM. Ref. Section I.B.1 of Schedule 2: the Borrower shall: (a) through the PMU, no later than one hundred twenty (120) days after the Effective Date, or such later date as agreed by the Bank, adopt a manual under terms and conditions acceptable to the Bank (“Program Operational Manual” or “POM”); and (b) immediately thereafter, carry out the Operation in accordance with the POM. The Borrower shall not amend or waive any provision of the POM without the Bank’s prior written consent. In case of any conflict between the terms of the POM and those of this Agreement, the terms of this Agreement shall prevail. @#&OPS~Doctype~OPS^dynamics@padconditions#doctemplate Conditions Type Citation Description Financing Source For DLRs under Categories (1) to (5), until and unless the Borrower has furnished Disbursement Section IV.B.1(b) IBRD/IDA evidence satisfactory to the Bank that said DLR has been achieved v The World Bank Transforming Agri-food Systems in Morocco Program (P181587) I. STRATEGIC CONTEXT A. Program Strategic Context 1. The Moroccan economy has shown resilience in the face of multiple shocks including the COVID-19 pandemic, an inflationary shock, consecutive years of severe drought exacerbated by climate change, and the September 2023 earthquake. Real Gross Domestic Product (GDP) growth recovered to 3.4 percent in 2023 sustained by the rebound of the tourism sector, export-oriented manufacturing niches that include automobiles and aeronautics, and a recovery of private consumption. The relative strength of the Moroccan economy can be attributed to the solidity of its macroeconomic policy framework and to proactive measures to support households and firms. However, the shocks have left significant human and economic scars, including slower and more volatile economic growth, an interruption in the poverty reduction progress achieved in recent decades, and rising business insolvencies. This turbulent period has catalyzed the adoption of transformative reforms that hold the potential to set the economy on a stronger long-term development trajectory, including a major overhaul of the health and social protection systems, the launch of an extensive development program for the High Atlas provinces in response to the earthquake, and a comprehensive tax reform. Yet, Morocco has thus far not managed to reverse adverse long-term trends in its labor market. Inactivity rates have increased by over 8 percent over the past two decades and the unemployment rate remains 4 percent higher than its pre-pandemic level. 2. The proposed PforR (‘the Program’) aims at advancing the transformation of a Morocco’s agrifood systems, a critical growth engine for the country. In 2023, the agrifood sector accounted for 16 percent of Morocco’s GDP (including 11 percent for primary agriculture) and 19 percent of the value of total exports (including fisheries and aquaculture). As a foundational pillar of the economy, the sector plays a critical role in generating national and rural employment. In 2023, it provided 67 percent of rural employment and 36 percent of total employment, with 30 percent in primary production and 6 percent in agri-processing. However, multiple years of consecutive drought have led to strong production declines, especially in the rainfed grain sector, underscoring its vulnerability to climate risks. Additionally, persistent challenges such as gaps in food quality and safety as well as limited nutrition security continue to impede overall sector performance. Given recent economic disruptions and current climate trends, Morrocco’s food system must transform rapidly to produce more (to feed a growing population) and better (to meet nutritional, health and social needs in a climate-resilient way), while minimizing negative externalities on natural resources (to reduce resource consumption) and controlling greenhouse gas (GHG) emissions. The Program would enhance climate-resilience of the rainfed agriculture sector and strengthen food quality, safety and nutrition security, including by strengthening to the quality of public goods, repurposing public support, and enabling increased mobilization of private sector resources. B. Sectoral and Institutional Context 3. The Moroccan economy is highly vulnerable to the volatility of agriculture production further amplified by climate change. Morocco has experienced considerable warming trends since the 1960s, with observed average increases of 0.2°C per decade, exceeding the global average. Significant increases in the frequency of drought, extreme heat spells and extreme precipitation events have been observed. With crop yields in rainfed areas strongly correlated to the amount of rainfall, the agriculture sector remains a major source of macroeconomic volatility, and rainfall shocks, which are expected to become more frequent, already explain close to 37 percent of the variance of Morocco’s output over the medium term (with national grain production showing significant interannual variability, fluctuating between 3 to 11 million of tons over the last four years). Droughts also have significant fiscal, and balance of payment impacts due to the emergency support that is provided to farmers in exceptionally dry years and larger volumes of state-subsidized grain imports. Climate-induced impacts on rainfed agriculture (such as substantial reductions in crop yields due to lower water availability, more frequent and intense heatwaves as well as floods) could reduce GDP by up to 6.5 percent by 2050 and result in out-migration to urban areas of up to 1.9 million Moroccans (about 5.4 percent of the total population) by 2050 (World Bank, 2022). Page 1 The World Bank Transforming Agri-food Systems in Morocco Program (P181587) 4. After strong growth under the Green Morocco Plan ( Plan Maroc Vert, PMV), the government’s agricultural strategy over the 2008-18 period, which resulted in a doubling of agricultural GDP, the Moroccan agri-food sector has been affected for several years by the cumulative effects of multiple shocks . These include climate shocks (increasing water scarcity, rising temperatures and drought) and commercial shocks linked to the disruption of global value chains caused by the COVID-19 pandemic and the spillover effect of the ongoing conflicts. Low rainfall between 2018 and 2023 (except for 2020-21) led to the rationing of the supply of water for irrigation and had strong impacts on rainfed agriculture and livestock breeding. The reduction in agricultural and livestock production has modified the sector's trade balance and the coverage of domestic food needs. For example, Morocco had to resume its imports of milk and meat even though it was self-sufficient until 2020 and had to cover 57 percent of its domestic grain consumption needs through imports over the last three years, while only 45 percent was imported during the 2010-18 period). Climate shocks have combined with a sharp increase in production costs (fertilizers, seeds and fuel), thus fueling inflation in food products of around 15 percent annually. 5. The current Green Generation Strategy (GGS) 2020-2030 represents a major shift in focus from a production- centered strategy to a people-centered and climate-responsive strategy. The GGS supports the emergence of a middle class in rural areas, job creation for the youth and building human capital and skills to facilitate higher productivity, employment, and labor mobility. The strategy also aims at accelerating the transition towards a more climate resilient agriculture, which was initiated under the PMV. The assessment of GGS implementation until 2024 identified: (i) challenges in creating new jobs within primary production while the service sectors (including digital) and food processing still maintain growth potential; and (ii) a slower than expected adoption of climate- resilient and sustainable practices by farmers, requiring increased efforts and a better use of incentives to speed up the climate transition in the face of accelerating changes. 6. To increase the agriculture sector’s climate resilience, secure green jobs in rural areas, and ensure national food security, the GGS is increasingly prioritizing rainfed agriculture. Under the PMV and the initial phase of the GGS, public investments were mainly devoted to irrigated agriculture. While irrigated areas contribute on average to more than half of the total agricultural value added, rainfed agriculture still represents 80 percent of the cultivated area, employs the largest portion of the agricultural workforce, and is essential for the nation’s food security. Grain production accounts for around 70 percent of rainfed agriculture in Morocco with 1.2 million farms (out of a total of 1.6 million farms) engaged in grain cultivation, according to the latest agricultural census. In light of successive drought years that have significantly impacted crop yields and jobs, the GGS has recently intensified efforts to promote the adoption of climate-smart practices, notably Conservation Agriculture (CA)1 for rainfed grain production systems. 7. In dryland areas, CA can achieve triple win results of building resilience to climate change (especially droughts), increasing productivity (through increased soil fertility) and reducing GHG emissions (through increased carbon sequestration). To ensure that farmers can develop the skills needed to adopt these new practices, training programs would have to be scaled-up and combined with proactive repurposing of subsidies, along with an increase in supporting public goods such as research and extension services. 8. Supporting the most vulnerable farmers in Morocco's rainfed areas to cope with the impacts of climate change will require the implementation of a comprehensive approach combining risk mitigation with risk transfer. The transition to climate-smart farming practices must be combined with smart climate risk management tools to secure agricultural investments, stabilize farmers' incomes, and ensure the country's food security. Public support to risk management tools currently includes financial support to crop insurance premiums and emergency programs, and could in the future include financial participation in resilience funds to compensate for economic 1 Conservation Agriculture (CA) is a climate-smart practice based on the integrated management of soil and water resources to achieve economically, ecologically, and socially sustainable agricultural production systems. It is characterized by three interlinked principles, namely: (i) minimum mechanical soil disturbance throughout the entire crop rotation (no tillage); (ii) permanent soil cover, and (iii) diversified crop rotations in case of annual crops or plant associations in case of perennial crops (FAO 2013). CA contributes to increased fertility and crop yields by reducing erosion, increasing accumulation of soil organic matter and improving soils’ water retention capacity. Page 2 The World Bank Transforming Agri-food Systems in Morocco Program (P181587) losses resulting from climate events in areas where private insurance is no longer viable, during a transition-phase to more climate-resilient production systems. The GGS aims at extending the area under agricultural insurance from 1.2 million today to 2.5 million hectares by 2030. However, the current government-supported agricultural coupled with rising production costs and high transaction costs, have undermined the current system’s viability. 9. In addition to climate-related risks, certain food value chains are affected by specific sanitary risks, especially in the domestic market for olive oil and fresh products (e.g., fruit and vegetables). Food safety governance in Morocco involves multiple institutions, leading to inefficiencies in the application of the legal framework related to food safety. This has resulted in: (i) quality gaps for olive oil, which is mostly consumed domestically and produced by informal and traditional olive mills, leading to non-compliance with quality and sanitary standards; (ii) concerns related to microbiological quality of perishables (fruit and vegetables) ; and (iii) food processing units and food sales outlets which do not consistently meet applicable food safety standards. Therefore, the proposed Program aims to strengthen the regulatory framework by clarifying the roles of key actors, improving food safety controls, and enhancing sanitary compliance in food processing and distribution. It would also seek to build private and public capacity for adopting the One-Health (OH) approach, which addresses health risks amplified by climate change like livestock parasites, food contamination, and plant diseases. This would pave the way for strengthening health risk management based on the OH-approach through multidisciplinary collaboration and innovative tools, especially for antimicrobial resistance surveillance, mapping, analysis and evaluation of existing systems. 10. The triple burden of undernutrition, malnutrition, and overnutrition acts as a key barrier to economic development and wellbeing. Morocco has been quite successful in reducing under- and malnutrition over the past decades; however, more efforts are needed to achieve national and global nutrition targets. For example, 18.2 percent of infants are still underweighted at birth while 34.4 percent of women suffer from anemia2. Furthermore, under – and malnutrition now increasingly coexist with a growing incidence of overnutrition, as well as diet-related diseases owing to changes in dietary preferences and food consumption patterns. Based on the latest data3, 53 percent of the population (including 18.4 percent of children between the age of 6 and 12), is classified as overweight or obese. In terms of dietary diversity, national consumption of dairy, fish and red meat is above the recommended range (24.8 g/person/day vs. 14 g/person/day) while individual intakes of vegetables, pulses and fruits are below recommended values (GNR, 2022). The growing importance attributed to the nutrition agenda is reflected in the recent publication of National Multisectoral Nutrition Strategy (2024-2030) by the Ministry of Health and Social Protection (MSPS) whose implementation the proposed Program would support. 11. Supporting farmers' capacity to produce and market quality food has the potential to strengthen the efficiency of the food system by increasing incomes while reducing emissions. Increasing demand for high quality products in domestic and international markets is creating new opportunities for income generation. Because of higher prices, organic farming can increase farmers' incomes while reducing carbon emissions through the increased use of energy-efficient fertilizer sources such as animal manure and compost instead of chemical fertilizers. In parallel, farmers' market access can be improved by creating shorter marketing channels through innovative aggregation mechanisms such as Productive Alliances4. Better management of food losses and waste (FLW) in the Moroccan agri-food system is another key lever for improving overall food system efficiency. In the Middle East and North Africa region, including Morocco, an estimated 34 percent of food is lost or wasted (FAO 2015). 12. The proposed Program is aligned with the World Bank Group Morocco Country Partnership Framework (CPF) 2019-2024, discussed by the Executive Directors on February 19, 2019 and extended to FY2025 at the Program and Learning Review Report (PLR) stage on August 22, 2023. It is fully aligned with its Strategic Focus Area C: Promoting inclusive and resilient territorial development and would support Objective 10 (Support to climate 2 National Multisectoral Nutrition Strategy (2024-2030). 3 National survey on common risk factors for non-communicable diseases (STEPWISE) 2017-2018). 4 A Productive Alliance involves three core agents: a group of smallholder producers, one or more buyers, and the public sector. These three agents are connected through a business plan, which describes the capital and services needs of the producers and proposes improvements that would allow them to upgrade their production capacities and skills to strengthen their market linkages, i.e. with the buyer(s). Page 3 The World Bank Transforming Agri-food Systems in Morocco Program (P181587) adaptation and resilience in sectors threatened by climate variability and change). The Program would also indirectly contribute to Strategic Focus Area B: Strengthening human capital, by building and strengthening the capacities of public and private entities, farmers and their organizations as well as developing digital services. The Program would equally support the cross-cutting themes “Gender” and “Harnessing Digital Economy for Jobs and Faster Growth”. The Program is aligned with Morocco’s 2021 Nationally Determined Contribution - NDC (and its update leading up to COP30 in 2025, i.e. “NDC 3.0”) under the Paris Agreement including promoting climate resilient agriculture including organic farming; the Morocco Country Climate and Development Report’s (CCDR) priority area of tackling water scarcity and droughts, and Morocco’s long-term low-emission development strategy (LT-LEDS, 2021) that identifies decarbonization in the agricultural sector as a priority. The Program is also consistent with the National Adaptation Plan 2030, notably Pillar II: Strengthening resilience to climate risks 5. 13. The proposed operation would also contribute to the World Bank’s Food and Nutrition Security Global Challenge Program (FNS GCP). It would support the Action Area 3 of the FNS GCP -Scaling Solutions for Low-Emissions and Climate-Resilient Food Systems-; and Action Area 2 -Scaling Innovative Cross-Sectoral Solutions for Nutrition and Healthy Diets Action-, which aims at scaling key solutions to tackle the triple burden of malnutrition: undernutrition, micronutrient malnutrition, and overweight/obesity. The PfoR will also contribute to the Bank’s new target of doubling agri-finance and agribusiness commitments (US$9 billion annually by 2030). 14. The Program will support improvement of global public goods (e.g. climate mitigation and resilience; pandemic prevention, food safety and nutrition) and the jobs agendas, by: (i) securing jobs and improving job quality for rural farmers and workers in rainfed areas and in targeted value chains; (ii) creating new job opportunities and consolidating existing ones in rural areas (e.g., service cooperatives) and urban areas (e.g. food sale outlets); and (iii) enhancing capacities for better access to the job market by investing in training, professional education (at the technician level) and upgrading university curricula. II. PROGRAM DESCRIPTION A. Program Development Objective(s) (PDO) 15. The PDO is to increase the agrifood system’s resilience to climate change and strengthen food safety and quality. B. Theory of Change and PDO Indicators 16. To achieve the PDO, the Program is organized around two Result Areas (RA) with two PDO indicators each: 17. RA#1: Improved climate resilience and risk management in rainfed agriculture. This RA aims to reduce the impact of climate risks to rainfed agriculture (especially for grain production) by supporting the transition from conventional systems to conservation agriculture (DLI#1) to enhance climate resilience, while reforming the agricultural risk management system to mitigate residual climate risks (DLI#2). The PDO indicators are: (i) PDO Indicator#1: Area transitioning towards conservation agriculture (a custom sub-indicator of the Corporate Results Indicator-CRI- “Landscapes under enhanced conservation and/or sustainable management”), which contributes also to the CRI “People with enhanced resilience to climate risks”; and (ii) PDO Indicator#2: People covered by disaster risk finance and insurance (a standard sub-indicator of the CRI “People with enhanced resilience to climate risks”). 18. RA#2: Strengthened Food Safety, Food Quality and Nutrition Security. RA#2 aims to improve the production of high-quality food in targeted value chains (olive oil, vegetables), to support the expansion of organic farming (DLI#3), and to mitigate food-related sanitary and health risks at the level of food distribution (DLI#4). RA#2 also aims to enhance public and private capacities, and awareness at the global level on Nutrition, FLW, OH and circularity through DLI#5. The two RA#2 PDO indicators are: (i) PDO Indicator#3: People benefitting from strengthened food safety, food quality and nutrition security (sub-indicator currently under validation for being 5 Particularly the three following domains axes: Promoting a sustainable and resilient agricultural sector; protecting water resources; and reducing the effects of climate change on people's health and well-being. Page 4 The World Bank Transforming Agri-food Systems in Morocco Program (P181587) linked to the CRI “People with strengthened food and nutrition security”); and (ii) PDO Indicator#4: People with increased awareness and capacity related to nutrition security. 19. Five DLIs will contribute to the four PDO outcomes, as shown in the Theory of Change (ToC) below. Annex 1 includes the detailed results framework (RF), while annex 2 presents the sequencing of all indicators. The critical assumptions underpinning the ToC are: (i) the Government of Morocco (GoM) will continue to support the GGS and other ministries’ programs by mobilizing the necessary budgets and human resources (e.g. for equipment purchase, extension services, establishment of Communal Hygiene Offices (BCHs)); (ii) the government will ensure adequate coordination between the key stakeholders to issue the appropriate regulations needed to achieve some results (e.g., repurposing subsidies, enhancing food safety); and (iii) the farmers’ organizations and individual farmers will benefit from adequate and coordinated incentives and public goods (e.g., extension services, availability of improved seeds, research) to ensure behavior changes and technology uptake (such as conservation agriculture, climate-resilient seeds, loss reduction, modernization of processing equipment and units). Figure 1: Theory of Change Page 5 The World Bank Transforming Agri-food Systems in Morocco Program (P181587) C. PforR Program Scope: (i) Summary of the on-going government program: 20. The 2020-2030 Green Generation Strategy (GGS), launched in February 2020 by King Mohammed VI, is the government program for the agri-food sector. This strategy is predicated on the adoption of a new vision for a climate-smart agricultural sector, new governance arrangements and the provision of modern tools for agricultural development. The GGS aims to deliver the following results by 2030: (i) 400,000 households entering the middle class, with 3 to 4 million farmers with social protection; (ii) one million hectares converted to climate- smart agriculture, particularly CA; (iii) increase of the area insured against climate risks from 1 million to 2.5 million hectares; (iv) one million ha of collective land developed, with 350,000 new farmers and agricultural entrepreneurs and 150,000 young people trained; (v) 70 percent of production undergoing processing; (vi) 2 million farmers connected to agricultural e-services; (vii) twice the level of agriculture GDP and agricultural exports; and (viii) twice the level of water efficiency. 21. The GGS is the natural continuation of the Green Morocco Plan ( PMV) launched in 2008 to further modernize and foster the growth of the agri-food sector. The GGS incorporates the findings of the 2018 review of results achieved under the PMV16, which quantified implementation progress with respect to agricultural output growth and value added, yields, exports, job creation, as well as the PMV’s transversal reforms. The 2018 review recommended a shift in emphasis towards the rural youth as bona fide investors, the promotion of investments in value-addition, agri-food processing as well as a greater focus on market diversification. After five years of implementation, the GGS is undergoing a mid-term review which will most likely result in a revision of some of the final targets, and the setting of new priorities focused on strengthening food security. Box 1: Status of World Bank PforR portfolio supporting the agrifood sector The progress made by recent and ongoing PfoRs supporting the agri-food sector in Morocco will benefit a considerable number of interventions planned under the proposed Program. The former government sectorial strategy PMV was supported by the "Strengthening Agricultural Value chains PforR” (2018-24, USD 200 million, P158346) which aimed to increase market efficiency and value addition with a particular focus on the citrus and olive value chains. The PforR built the technical, financial and institutional capacity of the National Office of Food Safety (ONSSA), a key implementing agency under the newly proposed program, and financed the construction of a modern wholesale market in Rabat that will help improve food safety and reduce downstream food losses. Moreover, the program strengthened the technical and financial capacity of interprofessional organizations including Interprolive6, which will contribute to the modernization of the olive oil sector. Other noteworthy achievements include the creation of a cutting-edge facility for biological control of the Mediterranean fruit fly (a critical citrus fruit pest) and the establishment of improved business development, financial and technical support services for agri-business. The WB is also supporting the current government strategy (GGS) through the “Green Generation PforR” (2020-2025, USD 250 million, P170419, co-financed with the French Agency for Development with EUR 100 million) with a focus on strengthening youth employment, the digitalization of agriculture, and the efficiency of agri-food marketing systems. The GGS PforR has developed three new digital tools relevant to the proposed Program: an improved digital extension platform for the provision of extension services to farmers (adopted by the National Office for Agricultural Extension - ONCA), a soil mapping solution adopted by the National Agronomic Research Institute (INRA) and an early warning system for pest- and disease detection for improved sanitary and phytosanitary control (adopted by ONSSA). In addition, export inspection certificates are now all issued in digital form, facilitating the export of high-value products through the Agency for Export Coordination and Control (Morocco Foodex). Finally, the construction of four modern wholesale markets (Agadir, Berkane, Meknes and Marrakech) is ongoing. 6 Moroccan Interprofessional Federation of the olive value chain. Page 6 The World Bank Transforming Agri-food Systems in Morocco Program (P181587) (ii) Program Boundary and Results Areas: 22. The proposed Program will support the implementation of the second period (2025-2030) of the ongoing national strategy. The GGS covers two Pillars and eight strategic Intervention Areas (IA). Pillar I, which focuses on Human capital, comprises four IAs supporting the emergence of a new generation of: (a) Agriculture middle class; (b) Young agricultural entrepreneurs; (c) Agricultural organizations; and (d) Support mechanisms. Pillar II aims to increase the Sustainability of agricultural development, also through four IAs: (a) Consolidation of agricultural value chains; (b) Modern and efficient trade and distribution channels; (c) Quality, innovation and Green-Tech; and (d) Resilient and eco-efficient agriculture. The Program will also support the efforts of other ministries to enhance the food safety at food distribution level under the leadership of Ministry of Interior (MI), and the programs of the Ministries in charge of Health (e.g, nutrition) and Education (e.g., school meals). The Program’s geographic area (Program Area) covers the urban and rural areas of the regions, provinces and communes listed in the Program Operational Manual (POM). 23. The table below7 compares the Intervention Areas (IA) of the GGS with the two RAs of the proposed operation, as well as the IAs covered by previous operations. Table 1: Key attributes and scope of the program Green Generation Program supported by the proposed PfoR Intervention - 2020-30 - (MAD 127 billion – around US$10 billion) - 2025-30 - (US$802.3 million) Area Strategic Initiatives Keys Achievements Outstanding Issues Proposed program − Need for reform of the − Expanded and targeted − Reform of the system of assistance RA#1: Improved agricultural insurance by IA#1: New incentives to improve incomes; and incentives; climate resilience differentiating between generation of − Enhanced social protection; − Increase in Minimum Wage in and risk non-insurable areas agricultural − Guaranteed Minimum Agriculture sector; management in (through a new middle class Agriculture Wage and working - Set up of a social protection system rainfed agriculture instrument) and insurable conditions. for farmers and their families. (DLI#2) areas. IA#2: New − Entrepreneurship grants for − Creation of the Regional Centers (IA already supported generation of rural youth; for Young Agricultural Entrepreneurs; by the Green young − Assistance to start-ups; - Targeted incentives for youth Generation PforR – agricultural − Training and professional (FDA8). P170419) entrepreneurs qualification. - Lack of support to − Structuring and aggregating − Strengthening aggregation and RA#2: Olive and farmers’ organizations to IA#3: New farmers around efficient; value chain organizations (inter- vegetable value better manage equipment generation of agricultural organizations; professions); chains (DLI#3 / DL#5) for CA; agricultural − Strengthening and - Budget transfer to interprofessions (Citrus value chain - Support needed for organizations empowerment of the VC through conventions (Contrat- supported by value chain organizations organizations. Programmes). P158346) (Interprolive and FIFEL9). − Reform of agricultural advisory − Strengthening of private − Need to complement RA#1: Incentives and IA#4: New services; agricultural advisory; investment support with extension services generation of − Improved access to digital − Several successful experiences in incentives and extensions for CA (DLI#1), olive support agricultural services; the digitalization of services; services to accompany oil and vegetables mechanisms − New generation of community − Reinforcement of support transition to CA. (DLI#3) farming projects. mechanisms (i.e. FDA). − Streamline incentives upstream RA#2: Strengthened − Support for investment and IA#5: of value chains; Food Safety, Food integration of small and medium − Limited value addition Consolidation − Accelerate processing and value Quality and Nutrition producers in markets; of agricultural products; of agricultural addition; Security (DLI#3 with − Support for the development of − Food safety issues. value chains − Support export organic farming, PAs, value-added agricultural products. competitiveness. and food quality) 7 Please see annex 2 for detailed expenditure framework. 8 FDA is the Agriculture Development Fund (Fonds de Développement Agricole), which manages all producer-focused subsidies for the agricultural sector in Morocco. 9 Interprofessional Federation of fruit and vegetable production and export. Page 7 The World Bank Transforming Agri-food Systems in Morocco Program (P181587) Green Generation Program supported by the proposed PfoR Intervention - 2020-30 - (MAD 127 billion – around US$10 billion) - 2025-30 - (US$802.3 million) Area Strategic Initiatives Keys Achievements Outstanding Issues Proposed program − Identification of a new IA#6: Modern management for wholesale markets; − Asymmetry of market RA#2 − Structure and modernize and efficient − Strengthening of Morocco Foodex's information between (DLI#3 with PA and distribution channels; distribution to improve the exports control; farmers and agro- modernization of − Develop agricultural exports. chains − Support to organizations of industries / buyers. olive mills) producers for marketing. − Lack of sanitary − Improved product quality; RA#2 IA#7: Quality, − Reinforcement of sanitary control controls; − Diffusion of innovation, (DLI#3 and DLI#4 for innovation of food; − Low investments in Research & Development (R&D) food production and and Green- − Several successful projects in R&D; and precision farming; distribution Tech innovation and green tech. − Low adoption of digital − Investments in R&D. respectively) by farmers. IA#8: Resilient − Continuation of water − Limited adoption of CSA RA#1 and eco- mobilization and saving pgs; − Realization of several projects practices for rainfed (DLI#1 with No- efficient − Dissemination of soil focused on climate-smart agriculture. agriculture. Tillage and CA) agriculture conservation techniques. Result Area #1: Improved climate resilience and risk management in rainfed agriculture 24. RA#1 is based on an integrated approach to reduce climate risks affecting Moroccan rainfed agriculture. Covering rainfed production areas, RA#1 includes support for farmers and the involved institutions to accelerate the technical transition towards CA for better management of soils and scarce rainfall. In addition, it will revamp the climate-related risk management system to minimize the economic impact of climate shocks on producers and increase the efficiency of public spending. Through stabilizing yields and mitigating climate risks, RA#1 will secure jobs and livelihoods while also increasing job quality given lower labor requirements under no-till agriculture compared to conventional tilling. RA#1 includes two main sets of results and related PDO outcomes as described below. 25. The first PDO outcome aims to contribute to the GoM’s objective of converting 1 million hectares by 2030 from traditional systems towards CA in the rainfed production sector. This PDO outcome will contribute to national food security by securing domestic grain production (and thereby limit the need for grain imports) in the face of increasing climate change impacts. Expanding No-tillage (NT) practices and more comprehensive adoption of CA (including through the enhanced use of drought and heat-resistant seeds and crop rotation) will lead to improved soil health and fertility which would enhance resilience to increasingly erratic rainfall in rainfed grain-producing areas. No-tillage farming will also reduce GHG emissions from agriculture through increased carbon soil sequestration (via reduced erosion and increased accumulation of soil organic matter) and reduced use of hydrocarbon-based inputs and energy. To achieve the first PDO outcome, the Program would support the achievement of following results under DLI#1. 26. DLI#1: Support to the transition towards Conservation Agriculture in rainfed production areas. The first set of activities and expected results are related to the support to the implementation of the national no-tillage program for rainfed production. It includes: (i) improved access of farmers to adequate agricultural equipment (direct seeders, tractors) to enable farmers to practice no-till seeding and eliminate tillage, thereby reducing GHG emissions; (ii) improved no till / conservation agriculture training courses (at technician level and for ONCA’s agricultural advisers); (iii) strengthened farm advisory services dedicated to no-till and conservation agriculture, with targeted training programs for women and youths; (iv) repurposed subsidies related to the existing support scheme (FDA, Agriculture Development Fund)10 to increase incentives to invest in new energy-efficient equipment required for no-till and conservation agriculture (e.g., direct seeders) while reducing incentives for conventional tillage; (v) better capacity to monitor and assess impacts (such as area expansion, yield improvement and soil carbon sequestration) of the transition through a digital monitoring platform currently under development; 10 Agriculture Development Fund (Fonds de Développement Agricole). Page 8 The World Bank Transforming Agri-food Systems in Morocco Program (P181587) (vi) introduction of a special bonus for the agricultural insurance premium for farmers practicing no-till agriculture; and (vii) contribution to the creation of an enabling environment for raising climate finance and fostering the implementation of carbon finance mechanisms through operationalization of the digital platform mentioned above under (v), and partnership with new entities developing carbon finance (e.g. Tourba11). 27. The second set of activities and expected results under DLI#1 aims to strengthen the agriculture research & innovation system in support of climate resilience, particularly in the cereal and leguminous sector. It includes: (i) support to the National Agronomic Research Institute (INRA) in doubling production of pre-basic climate- resilient cereal seeds (G1 and G2 of cereal) to better respond to new climate challenges (increasing incidence of pests due to the climate and increasing water scarcity). The pre-basic seeds will provide the basis for seed multiplication through national seed companies, most notably the National Seed Commercialization Company (SONACOS); (ii) operationalization of the new Genetic Resources National Center (CNRG) in the Rabat-Sale-Kenitra region that will be mandated to preserve plant and animal genetic resources to maintain climate resilience and biodiversity; and (iii) increased financial incentives for the adoption of improved climate-resilient seeds, particularly for leguminous crops which are a key component for crop rotation in CA. 28. RA#1 also contributes to PDO outcome #2 focused on the improvement of agricultural climate-risk management. DLI#2 (Reform the agricultural insurance system) complements DLI#1, by addressing residual risks based on risk transfer and coping mechanisms. DLI#2 aims to optimize the impact and cost efficiency of public spending on the financial management of agricultural risks. Over the past two decades, the GoM and its implementing partners have gained significant experience in agricultural insurance. Nevertheless, the agricultural insurance system requires substantial reforms to maintain its viability (see details in the standalone technical assessment document). This is due to: (i) accelerating climate change reflected in the observed increase in the frequency and severity of droughts and heatwaves; and (ii) a significant rise in production costs due to the global economic context, impacting the insurance program’s objective of covering production costs. These factors have led to a decline in the insurance program's financial sustainability, as indicated by an annual increase in premium rates and a decrease in insured capital. Both premium rates and the decrease in insured capital are excessively high compared to industry standards. In its current form, the insurance program represents an inefficient allocation of public funds, with a considerable portion being consumed by transaction costs and failing to reach the farmers. 29. DLI#2 builds on the results of recent WB technical assistance (TA) to MAPMDREF (Ministry of Agriculture, Fisheries, Rural Development, Water and Forests). Expected results will include: (i) creation of a new Program for Climate Resilience and Adaptation (PCRA). The PCRA will cover uninsurable areas where private insurance is no longer viable and where insurance/reinsurance companies are unable to offer commercial insurance products given very high climate risks in these areas. To ensure financial sustainability, the PCRA will be designed as a temporary mechanism incentivizing farmers to transition to more climate-resilient activities and supported by farmers’ subscription fees. The PCRA could be based on a parametric index, which would reduce the management and expertise costs associated with its deployment; and (ii) revamping of the current insurance product for insurable areas to increase its cost-effectiveness and enhance its attractiveness to commercial, highly productive farmers. This restructuring will be carried out with the insurance company providing the current climate insurance product (MAMDA)12. Result Area#2: Strengthened food safety, food quality and nutrition security 30. RA#2 contributes, through DLI#3 and DLI#4, to the PDO Outcome#3 “Strengthened food safety, food quality and nutrition security”. DLI#3 (Support high-quality and safe food production) will encompass food production and processing while DLI#4 (Strengthen food safety at food distribution level) covers food distribution. RA#2 will contribute to job creation in organic farming (which is generally more labor-intensive than conventional 11 See standalone technical assessment document for details. 12 Moroccan Agricultural Mutual Insurance Company (Mutuelle Agricole Marocaine d'Assurances). Page 9 The World Bank Transforming Agri-food Systems in Morocco Program (P181587) agriculture). Additionally, it will enhance job quality and remuneration by improving hygienic and environmental conditions in olive mills and food sales outlets and creating opportunities for access to higher-value markets. 31. DLI#3 aims at: (i) strengthening food safety, particularly for the national market and in sectors of fresh produce (fruit and vegetables) and olive oil, where a significant proportion of sales are informal, in bulk and/or through poorly controlled outlets (which contributes to food losses); and (ii) enhancing the quality and safety of food as well as reducing GHG emissions from agricultural inputs through the expansion of organic farming and Productive Alliances (PAs) with short marketing circuits. The expected results of DLI#3 are: a. Improved food safety and product quality. This result will be achieved through: (i) increased controls of olive oil quality; (ii) enhanced incentives to invest in modern olive oil processing equipment in compliance with recognized energy efficiency standards enabling the production of high-quality olive oil; (iii) increased number of olive oil mills with sanitary approval; and (iv) improved regulatory framework on food safety (especially for edible oil and fats and microbiological standards) in line with international standards. b. Organic farming scaled up. This expected result contributes to the GGS objective of increasing the area of organic farming from 13,125 to 100,000 hectares by 2030 for both national and the export markets . Following the objectives of the Contrat-Programme agreed between MAPMDREF and the "Maroc Bio" organic farming interprofession, this will achieved through: (i) the revision of national regulations to realign them with international standards; (ii) the introduction of a flat-rate incentive for converting to and maintaining organic farming; (iii) capacity enhancement for technicians (new training courses); and (iv) the establishment of a new virtual Technical Center for the development for organic farming. c. Productive Alliances scaled-up. This activity aims to strengthen smallholder organizations’ access to sustainable and profitable markets, including through organic agriculture and other low carbon production practices. The aim is to scale up the PA scheme, tested successfully by the Agricultural Development Agency (ADA) under the PforR Strengthening Agri-Food Value Chains (P158346). This approach offers integrated solutions to address market imperfections that hinder the socio-economic progress of smallholder producers whilst reducing resource use intensity, especially related to scarce water resources by reducing waste in the value chain. PAs are grounded in the execution of business plans tailored to meet buyer requirements (market demand) within the framework of clearly defined commercial agreements. The activity’s design will be based on the lessons learned from a recent pilot that resulted in the signing of agreements between four buyers and sixteen producer groups in ten value chains. This activity will also promote the emergence of PA with women and youth beneficiaries. 32. DLI #4 aims at strengthening food safety at the food distribution level. Food safety governance in Morocco is still subject to some regulatory gaps (especially in the downstream segments of the food value chain) and involves multiple institutions, leading to several inefficiencies in the application of the related legal framework. To this end, the Program will support the following activities and results: (i) introduction of a new joint order (Arrêté) between MAPMDREF, MI (Ministry of Interior) and MSPS (Ministry of Health and Social Protection) requiring sanitary approval for food outlets. The system will be digitalized on an existing platform called “ Rokhas”; (ii) an increased territorial coverage by Communal Hygiene Offices (BCHs) with improved training of BCH staff. The BCHs play a key role to enforce the new joint order by providing sanitary authorization to number of food sales outlets (iii) an increase in the number of food outlets with sanitary approval, with special attention given to outlets owned by women and youth; and (iv) enhanced consumer awareness on the health risks associated with unsafe foods, with a special focus on women and youth. 33. RA#2 also contributes, through DLI#5, to PDO Outcome#4 (Increased awareness and capacity related to nutrition security). By supporting enhanced awareness and capacity related to innovative and emerging agendas (i.e. nutrition, One-Health, FLW, agrifood system circularity), DLI#5 aims at advancing these agendas that are currently at early stages of reflection and maturity. By laying the ground for future investments, this DLI would contribute to reducing food and nutrition insecurity exacerbated by climate change in the medium term. It will be informed by the results of the TA under the Investment Project Financing (IPF) component. The expected results Page 10 The World Bank Transforming Agri-food Systems in Morocco Program (P181587) of DLI#5 encompass the following: (i) strengthened capacity of the public sector to coordinate the climate smart transformation of agri-food systems through TA; (ii) action plan developed to enable Morocco’s participation in the School Meals Coalition13 through ensuring use locally produced and healthy foods (using results of DLI#3); (iii) changes of practices related to nutrition and diets through communication campaigns targeting women. This activity will include measuring the impact of the campaigns through behavior change studies; (iv) strengthened technical capacity related to nutrition and one-health through the creation of two new accredited master degrees on a) nutrition and b) the OH approach at the Institute of Agronomy and Veterinary (IAV) Hassan II; and (v) development of a food loss reduction action in the vegetables subsector by the concerned value chain organization (FIFEL interprofession) and support in its implementation through the organization of awareness campaigns by FIFEL; and (v) technical and financial studies developed to support the emergence of a new platform for recycling of agricultural plastics from greenhouses (such as drip ducts) in the Souss-Massa Region. (iii) Program Beneficiaries: 34. Estimates of beneficiaries of the proposed operation. The breakdown of currently estimated Program beneficiaries is as follows: (i) approximately 120,000 farmers benefitting from the conversion of conventional tillage to CA (including 18,000 youths and 6,000 women) and from the enhancement of climate agricultural risk management and the expansion of organic farming to a total of approximately 1.4 million ha; (ii) 1,200 agri-food SMEs or food sales outlets benefited by the enhancement of food safety; (iii) 11,570 professionals trained (Food sales outlets, advisers on NT/CA, Nutrition, One-Health, FLW, BCH, etc.) with at least half women, (iv) 725,000 consumers benefitting from the increasing of food safety controls for olive oil and food sale outlets; and (v) 500,000 consumers benefitting from awareness campaigns organized on all the topics (food safety, nutrition and OH), including 50 percent women and 100,000 youths. Annex 2 presents the detailed estimate for a total of around 1.36 million beneficiaries. (iv) Program Expenditure Framework: 35. The Program Expenditure Framework (PEF) is of sufficient scale and technically appropriate for the program's envisaged scope with an estimated US$802.3 million. The PEF will incorporate the MAPMDREF budget lines, for the period 2025-2030, related to the Program Area, dedicated to: (i) the CA activities (the budget earmarked for the subsidy/purchase of direct seeders under the FDA managed by the Directorate for the Development of Value Chains (DDFP), for extension services under the ONCA, part of the budget earmarked for research conducted by INRA, etc.) at US$293 million; (ii) subsidizing insurance premiums for a total of US$271 million; (iii) activities related to the support provided for high-quality and safe food production (budget reserved for food safety controls through ONSSA, and for scaling up organic farming under the DDFP/FDA, as well as part of the ADA and DRA budget for PA for a total of US$122 million for the period 2025-2030); and (iv) the allocation to professional and academic training on nutrition, OH and organic farming under IAV/DEFR (Directorate for Education, Training and Research) budget for a total of US$16million. The PEF will also incorporate the MI budget lines devoted to setting up BCHs and granting sanitary authorizations to food sales outlets (US$100 million). More detailed information on budget lines is available in annex 2. (v) Program Financing: 36. Program Cost and Financing. The Program will be financed over five years (2025–2029) for US$312 million equivalents, including an IBRD loan of US$250 million equivalent. The Livable Planet Fund approved an allocation of US$5 million on November 13, 2024, recognizing the positive cross border externalities generated by the proposed Program in terms of GHG emission reductions. This grant will support small-holder farmers, through an innovative scheme of decoupled incentives, over the transition period from conventional practices to climate- smart agriculture practices CA and will therefore contribute to achieving results linked to DLI#1 (i.e., increase the 13The School Meals Coalition is a government-led and partner-supported effort that aims at ensuring that by 2030 every child worldwide can receive a healthy meal in school. Led by Brazil, Finland and France, the Coalition was one of the most impactful and successful initiatives coming out of the UN Food Systems Summit in 2021. Page 11 The World Bank Transforming Agri-food Systems in Morocco Program (P181587) area under CA by 360,000 ha over the Program implementation period). The grant will finance this support mechanism as Recipient-executed IPF. It will be added to the proposed Program through the provision of additional financing expected in early 2025. This grant is not included in the below table. Amount Percent Source (US$, Millions) of total International Bank for Reconstruction and Development (IBRD) 250.00 80 Borrower (operational costs of the implementing entities including 35.00 11 public servant salaries) Unguaranteed Commercial Financing (Private Capital Mobilized - 27.00 9 PCM) Total Program Financing 312.00 100 37. The proposed operation is aligned with the World Bank's Maximizing Finance for Development (MFD) approach. Private sector investment in the agrifood systems segments targeted by the Program remains limited due several binding constraints: (i) for the farmers: high technology and investment costs (e.g., direct seeders) combined with limited access to affordable insurance products limit the adoption of improved agriculture technologies; and (ii) for agro-industries and food sale outlets: a lack of conducive policies and incentives along with high investment requirements for improving quality, food safety and efficiency (FLW) hinders downstream value addition and access to more lucrative markets. DLI#1 and #3 contribute to enhancing the enabling environment for private sector investment and are verified as MFD-enabling: (i) DLI#1 offers financial incentives, including subsidies and a special agricultural insurance premium bonus for farmers who transition to CA. Additionally, it contributes to creating an enabling environment to attract climate finance and facilitate the implementation of carbon finance mechanisms; and (ii) DLI#3, which among other things, expands PAs to strengthen smallholder organizations' access to sustainable and profitable markets, with a focus on organic farming and other low-emission production practices. Direct investment (PCM) mobilized from the value chain actors is around US$27 million, and includes: (i) under DLI#1: co-financing by farmers and private service providers in new technologies and machinery (including direct seeders) (US$1.5 million); (ii) under DLI#2: roll-out of agricultural insurance, which will mobilize farmers’ payments for insurance premiums, and fundraising by insurance/reinsurance companies to cover the financial risks (US$15.9 million); and (iii) under DLI#3: private co-financing required for the expansion of organic farming and of PA with US$9.6 million. (vi) IPF component: 38. An agreement on TA will be signed with FAO to provide the Program Management Unit (PMU) with capacity building on priority themes linked to the transformation of Agri-food systems throughout the implementation of the Program. FAO is well positioned to provide TA on this this theme due to: (i) its widely recognized technical expertise and thought leadership, which is reflected in the organizations’ catalytic role in coordinating and driving the global food system transformation agenda following the 2021 UN Food Systems Summit; and (ii) its long- standing support to the GoM since 2021 when FAO led extensive consultations that contributed to the establishment of the “National Steering Committee for the Transformation of Food Systems in Morocco”. With the aim of coordinating the different stakeholders involved in all aspects related to the transformation, the committee developed a first Roadmap in 2023. Moreover, FAO is supporting the creation of Food Systems Transformation Hub under the Directorate of Strategy and Statistics (DSS, Direction de la Stratégie et des Statistiques). FAO will tailor the TA based on the specific needs of the PMU with a focus on social (such as behavior changes) and technical aspects linked to: (i) technology adoption (such as CA); (ii) improvement of nutrition outcomes (including school meals); (iii) circular economy as applied to the sector (e.g., reduction/reuse of plastic waste); (iv) OH; (v) FLW; (vi) PAs; and (vii) data and digital development (e.g., the Farmers’ National Registry -RNA, the platform for No-Tillage under DLI#1), and institutional support to MAPMDREF to internalize capacity across the ministry and monitor activities and policies focused on food system transformation. Additionally, the TA will support knowledge transfer through the organization of national and international seminars, workshops, as well Page 12 The World Bank Transforming Agri-food Systems in Morocco Program (P181587) as south-south and north-south exchanges. If another entity is selected to replace or complement the FAO during the implementation of the Program, the World Bank's IPF procurement rules would also apply. D. Disbursement Linked Indicators Disbursement Linked Indicators (DLI), Allocation Rationale of DLI Disbursement Linked Results (DLR) by RA (US$ million) RA #1: Improved climate resilience and risk management in rainfed agriculture 177.32 Conservation Agriculture (CA) practices increase farmers’ climate resilience by DLI#1. Support to the transition towards CA in resulting in substantially higher crop yields under dry conditions compared to 84.32 rainfed production areas: conventional practices while sequestering carbon. DLR #1.A will ensure that energy efficient direct seeders are available to smallholders in sufficient numbers. * DLR#1.A: Number of direct seeders available to 32.60 farmers (DDFP) DLR #1.B will facilitate farmers’ adoption of CA practices by repurposing some * DLR#1.B: FDA incentives repurposed to promote incentives to improve affordability of: (i) improved climate resilient grain and adoption of NT/CA practices (Directorate of Finance 8.69 leguminous seeds (for all kinds of farmers); and (ii) required equipment for - DF) medium and large-scale farmers (i.e. energy efficient direct seeders, tractors). * DLR#1.C: Area transitioning towards CA practices DLR#1.C will measure the actual transition to CA in terms of area. 43.03 (DDFP) Worsening climate conditions have reduced the viability and effectiveness of current agriculture insurance system, a key instrument to support farmers’ climate DLI#2. Reform the agricultural insurance system: 93.00 resilience. This DLI will contribute to reform the current system separating *DLR#2.A: Program for Climatic Resilience and insurable from non-insurable areas based on agroclimatic parameters. The reform Adaptation (PCRA) to cover uninsurable areas 10.86 will: (i) increase attractiveness of the insurance product in insurable areas for established (DF) highly productive farmers; and (ii) establish a resilience program (PCRA) to *DLR#2.B: Area covered by the reformed agricultural safeguard farmers’ livelihoods in uninsurable areas while simultaneously 82.14 risk management system (DF) promoting their transition to more climate-resilient production systems. RA#2: Strengthened Food Safety, Food Quality and Nutrition Security 70.05 DLI#3: Support high-quality and safe food Food produced for domestic consumption in priority value chains (olive oil and 30.07 production: vegetables) faces food safety and quality concerns due to outdated processing * DLR#3.A: FDA support for upgrading olive mills 5.43 equipment and a gaps in food safety standards. The DLI will contribute to: (i) increased from 10% to at least 20% (DF) increasing the quality of olive oil by incentivizing the modernization (including * DLR#3.B: FDA support for converting to and 5.43 increased energy efficiency) of olive mills (DLR#3.A); (ii) supporting an expansion maintaining organic farming enhanced (DF) in the area used for growing high value produce through organic farming with * DLR#3.C: Area certified under organic farming 12.69 climate mitigation benefits (DLR#3.B and C); and (iii) aligning national food safety (DDFP) regulations with international standards (DLR#3.D). * DLR3.D: Regulations governing food product 6.52 quality aligned with international standards (ONSSA) The lack of legal requirements for food sale outlets to obtain sanitary approval as DLI#4. Strengthen food safety at food distribution 31.28 part of the issuance of operation permits constitutes a key source of food safety level: *DLR#4.A: Joint order requiring food sales outlets to risks (as illustrated by recent events of food poisoning). This DLI will support obtain sanitary approval published 5.43 increased compliance with food safety standards of food sale outlets. DLR #4.A (MI/MAPMDREF/MSPS) will make sanitary approval a mandatory requirement for obtaining operation * DLR#4.B: Number of Bureau Communal d’Hygiene permits while DLR #4.B will ensure an increase in national coverage with BCH, 14.12 (BCH) operational (MI) tasked with monitoring sanitary standards at the municipality-level. DLR #4.C will * DLR#4.C: Number of food sales outlets authorized contribute to an increase in authorized food sales outlets with sanitary approval. at sanitary level (MI) 11.73 This DLI will inject critical momentum into furthering the nutrition and one-health DLI#5. Enhance awareness and capacity related to 8.70 nutrition security, One-Health and circularity: agenda, both of which are emerging themes, by increasing capacity and *.DLR#5.A: Master on Nutrition accredited at IAV awareness in the public and private sector, through supporting: (i) the creation of 2.72 Hassan II (IAV) a master on nutrition ; (ii) the creation of a master program on OH; and (iii) the * DLR#5.B: Master dedicated to One-Health adoption of an action plan to reduce food losses and improve resource efficiency accredited at IAV Hassan II (IAV) 2.72 (land, water, inputs) in the vegetable subsector through the concerned value chain * DLR#5.C: Action plan to reduce FL in the vegetable organization (FIFEL). 3.26 value chain adopted by the FIFEL Interprofession IPF component 2.01 Front-end Fee 0.625 Total 250.0 Page 13 The World Bank Transforming Agri-food Systems in Morocco Program (P181587) E. Role of Partners Name of Partner Nature of Involvement /Description FAO Provision of Technical Assistance through the IPF component on innovative agendas, including behavior changes, FLW, One Health, Circularity and Nutrition. F. Lessons Learned and Reflected in the Program Design 39. The Program design integrates lessons learned from the implementation of previous operations supporting the PMV and the initial phase of the GGS as well as recommendations from a recent PforR review covering 16 PforRs between 2012 to 2024. Specifically, six lessons have been identified: (i) It is key to develop a results chain allowing for clear attribution of results to Program activities while minimizing the risk of external hazards impacting the PDO. Both Strengthening Ag. Value Chains PforR (P158346) and the Large-Scale Irrigation Modernization IPF (PMGI, P150930) were negatively affected by a series of severe and recurrent droughts. The related PDO indicators were too closely linked to agricultural production that depended on external factors outside of the operation’s influence. This new operation aims to limit the potential impact of climate variability and disruptions to global value chains by prioritizing area-based rather than production-based outcomes; (ii) Institutional and Governance aspects must be tackled from activity outset when investing into new infrastructure or reforming longstanding management practices or arrangements. The completion of the Ceratitis center and the modernization of the Rabat wholesale market under P158346 were delayed as the implementing agencies did not start addressing governance aspects until late in the project; (iii) Operations need to integrate insights from behavioral and social sciences to maximize implementation success of activities promoting the adoption of new technologies (e.g. conservation agriculture), or behavioral change of consumers (e.g. reduction of losses and waste, change in nutritional habits). This operation will mobilize support from eMBeD (Mind, Behavior, and Development Unit) and/or the FAO behavior change team as part of the operation’s IPF component; (iv) It is important to mobilize sufficient levels of technical assistance to advance innovative agendas – something previous operations struggled to achieve. This Program will provide resources to the implementing agencies to get assistance from experts, in particular FAO, which is widely recognized for its leadership on the agrifood system transformation agenda, to enable the implementing agencies benefit from global expertise from the get-go; (v) The implementation of complex reforms (such as agricultural insurance) and/or ambitious programs (such as the transition to CA) must be based on solid analytics to maximize chances of success. Certain activities included in earlier PforRs (e.g., promotion of youth entrepreneurship under the Green Generation PforR) were not ripe for implementation at Program effectiveness and therefore required additional work on the design and the related enabling environment (e.g., the Regional Centers). The design of the more complex activities of this operation (reform of the agricultural insurance system and expansion of CA); and (vi) The need to shift towards outcome-based rather than process- based DLRs to achieve results. By adopting outcome-based DLRs, implementing agencies strengthen their focus on Program results and are incentivized to engage in continuous adaptation and learning during implementation. III. PROGRAM IMPLEMENTATION A. Institutional and Implementation Arrangements 40. The Program’s institutional architecture relies on multiple stakeholders with clear roles and accountability lines under the overall coordination of the DSS, which is in charge of the ongoing PforR Green Generation (P170419). To ensure close coordination of the various entities involved in Program implementation, the Ministry will establish a dedicated PMU within the DSS. The PMU will be responsible for day-to-day Program coordination, management, and monitoring and evaluation (M&E). It will include technical, social and environmental, and M&E specialists. The DSS has good technical capacity, experience in managing complex programs and substantial presence in the field through the DRAs (Regional Directorates of Agriculture), DPAs (Provincial Directorates of Agriculture) and ORMVAs (Regional Office for Agricultural Development). However, its capacity is constrained by Page 14 The World Bank Transforming Agri-food Systems in Morocco Program (P181587) limited staff resources and its monitoring systems need to be upgraded. External technical assistance will be mobilized through the PMU to strengthen the DSS for the monitoring and implementation of activities at the central and field level, monitoring the financial management of the Program, preparing progress reports for each calendar semester, and the monitoring and reporting of DLIs. The PMU role will include, as described below: (a) Coordination of the Program’s stakeholders at the operational level; (b) Secretariat of the Steering Committee; and (c) Program M&E. 41. Coordination of the Program’s stakeholders. Program implementation would be based on the combined intervention of key stakeholders comprising MAPMDREF Directorates, agencies under the supervision of MAPMDREF, and partner institutions linked to MAPMDREF through specific agreements (e.g, Contrat-Programme) and other ministries and affiliated agencies. The different stakeholders are listed below: a. MAPMDREF Directorates and decentralized services: the DDFP, the DEFR and the DF would be involved in Program implementation. At sub-national level, MAPMDREF relies on its network of decentralized offices in the DRA/DPA/ORMVA. The DRAs, DPAs and ORMVA play a central role in identifying, appraising and implementing projects aligned with the regional agriculture Plan (PAR-GG) and host the Agriculture Development Fund (Fonds de Développement Agricole, FDA) one-stop shop (guichet unique), which is the point of contact for producers applying for financial incentives granted by the FDA. b. In addition to the Directorates and decentralized, the institutional arrangements include: (i) MAPMDREF affiliated agencies: (a) the ONCA, created in 2013, responsible for agriculture extension activities as well as its regional and local structures covering the entire territory; (b) the ONSSA, created in 2009, in charge of sanitary control of food products and organized around four central directorates, with about 350 staff, as well as its regional and provincial structures covering the entire territory; (c) the ADA, which contributes to the implementation of the government's agricultural development strategy; (d) the INRA, responsible for agriculture research; and (e) the IAV Hassan II, responsible for higher education and research with study programs supporting digital agriculture and agricultural innovations; and (ii) Other implementing entities involved for specific results: the MAMDA, Interprolive and FIFEL. c. Other ministries and affiliated agencies: (i) Ministry of Health and Social Protection; and (ii) Ministry of Interior (especially the DGCT, Directorate-General for Territorial Authorities) and the regional governorates with coordination role across decentralized services at the regional level. 42. The PMU includes representatives of all departments and institutions involved in Program implementation , namely DDFP, DF, DEFR, ONCA, ONSSA, ADA, INRA, IAV as well as the MSPS, MI, and the Wilayas involved in the implementation, and other implementing entities mentioned above, particularly FAO (or any other entity selected to contribute to the TA under the IPF component). Those representatives or focal points are designated by their respective entities. The PMU will have regular meetings, at least every three months, similarly to the ongoing PfoR Green Generation. The meetings of the PMU will be strategically organized before WB implementation support missions and the meetings of the Steering Committee are generally organized after WB missions. 43. Steering Committee (Comité de Pilotage, COPIL). Strategic decision-making responsibilities will rest with a Steering Committee comprising representatives of MAPMDREF (relevant directorates and autonomous agencies under the ministry), the Ministry of Economy and Finance (MEF, represented through Directorate of Budget and Directorate of Treasury and External Finance – responsible for the coordination of relations with the World Bank), the MHSP, the MI, as well as the Wilayas involved. The Steering Committee will be chaired by the Secretary General of MAPMDREF (or his/her representative) and will meet every six months to review progress and make decisions required for effective Program implementation. 44. Creation of a new entity, within the DSS, in charge of food security and the transformation of agri-food systems . A hub was created in September 2024 and a coordinator was appointed in the DSS responsible for coordinating the transformation of agrifood systems In Morocco. This hub will become an entity in the DSS soon and will play a crucial role for the proposed operation and the dialogue coordinated by FAO and the MAPMDREF. Page 15 The World Bank Transforming Agri-food Systems in Morocco Program (P181587) B. Results Monitoring and Evaluation, and Verification Arrangements 45. MAPMDREF would coordinate the M&E activities of the Program, through the DSS. It would compile and consolidate data and supporting documents, ensure data quality, and prepare and submit reports to the Bank promptly. DSS, along with the implementing entities, will collect data on physical progress, achievement of results in each Program area, and the flow of funds. The DSS will furnish reports to the Bank on a semi-annual basis, covering the following: (i) expenditures, including transmission of audited accounts; (ii) physical progress; (iii) RF indicators; (iv) DLIs; (v) compliance with E&S requirements; and (vi) grievances and any allegations of fraud and corruption. A Mid-Term Review will assess progress of Program implementation towards the PDO. At the end of Program implementation, an independent evaluation will assess the Program’s results and impacts. 46. The Program’s M&E system would draw on the existing government’s systems used to track the implementation and results of the GGS. The Program will take advantage of existing tracking mechanisms, tools and types of records to collect, consolidate and report achievement of results and DLIs, that are in place for the Green Generation PforR (P170419). The specific online digital M&E tool that has been developed for that operation will be adapted for the proposed PforR, as described in the TA document. Additional data will be collected on: (i) investments under the FDA through the DF via the system SABA that manages the information on awarded incentives; and (ii) agricultural production data, collected by DRAs by means of surveys and administrative records based on an online-based platform (STATAGRI), administered at the central level by the DSS. MAPMDREF would conduct at least one public consultation per year on the Program throughout the implementation period to strengthen citizen engagement and transparency. This would be monitored as an indicator in the RF (IRI#6). C. Disbursement Arrangements 47. Disbursement arrangements. Disbursement of the Bank loan proceeds would be made at the request of the Borrower upon achievement of DLIs/DLRs. Disbursements for some DLIs would be scalable, thus allowing for disbursements to be proportional to the progress. The formulas to determine the specific amounts to be disbursed against achieved and verified results are provided in Annex 1. For the Project (IPF), disbursements will be made in accordance with the provisions set out in the MOP. 48. Advances. An advance up to 25 percent of the share of the loan allocated to the PforR may be requested by the Borrower once the loan becomes effective to facilitate the achievement of DLI results. 49. Verification protocols. The verification of progress towards the achievement of the Program's objectives would be carried out by the General Inspectorate of Agriculture (IGA) in MAPMDREF for all DLIs, except for DLI#4, which will be covered by the General Inspection of Territorial Administration (IGAT) under the Ministry of Interior. The verification missions would be carried out at least annually, or each time a DLR is achieved, in accordance with the terms of reference set forth in the POM. The verification of the achievement of DLIs by IGA/IGAT would be supported by the PMU who would compile and make available the documentation required for verification. Based on its validation, MAPMDREF, through MEF, would notify the WB of DLI achievement, supported by the relevant evidence and documentation. Following the WB's review of the documentation, including any additional information considered necessary, the WB would confirm the achievement of the DLIs and the level of Program financing proceeds available for disbursement against each DLI, including any incremental disbursement. 50. Disbursement requests. MEF would submit the relevant evidence of the total or partial achievement of DLIs to the World Bank. After analysis of that evidence, the World Bank would transmit to MEF the letter of notification of acceptance of the results. On that basis, MEF would submit disbursement requests to the World Bank. Page 16 The World Bank Transforming Agri-food Systems in Morocco Program (P181587) IV. PROGRAM ASSESSMENTS SUMMARY A. Technical 51. Strategic Relevance. The proposed Program would support the implementation of the GGS, which is the government’s sector strategy for agriculture sector, over the second half of its implementation period (2025– 2030). Given the criticality of the agriculture and food sector, which accounts for 16 percent of GDP, for the country’s economic and social development, the GGS is of high strategic relevance. Since its launch in 2020, the GGS has focused primarily on generating employment opportunities, especially for youth, modernizing irrigated agriculture, and promoting food exports. While significant progress has been achieved in these areas, intensifying and longstanding challenges weigh on sector outcomes and demand increased attention. The findings from the 2020-2024 implementation of the GGS, the CCDR, findings from WB technical support, and technical studies carried out by partners, including FAO, stress the importance of: (i) increasing support to rainfed agriculture to accelerate adaptation to climate change and securing food security; (ii) mitigating risks related to food safety and nutrition security; and (iii) addressing the high levels of food waste and losses. 52. Technical Soundness. The Program scope as well as the Program Result Areas (RA) are firmly grounded in recent analytics and studies on Morocco’s food sector, that have been carried out by the World Bank (including the CCDR, the Maghreb Policy Engagement for Resilient and Inclusive Agrifood Systems (P179965)) and its technical partners. Key insights on which the Program’s design is predicated include: (i) the importance of policies and incentives for the adoption of climate-smart practices such as CA; (ii) the need for optimizing and repurposing public spending in the agri-food sector to enhance resilience to shocks and to foster job creation, including through new opportunities (such as green jobs, agroindustry, recycling of waste, advisory services including digital). The PforR instrument is well-suited for this operation as it would support: (i) ongoing institutional reforms and leverage the resources and momentum of the government program; (ii) strengthening of existing government systems; (iii) the adoption of a programmatic approach with a mix of transversal activities; and (iv) MAPMDREF’s continued focus on strategic outcomes. 53. The design of Program support to foster the adoption of CA and advance the reform of the agriculture insurance are aligned with the recommendations of recent diagnostics developed under recent WB TA supported by the Climate Support Facility (CSF). It highlights the need to tackle: (i) the lack of availability and high cost of the required equipment, such as direct seeders adapted to local conditions and tractors with sufficient power; (ii) low availability of seeds of adapted crops (cereals and leguminous crops); and (iii) capacity constraints and inadequate financial and regulatory incentives. The Program would support, amongst others, repurposing CA adoption incentives and increasing availability of improved seeds. The need for reform of the agriculture insurance is driven by the increasing severity and frequency of droughts and rising production costs, which has led to unsustainably high premiums, reinsurance costs and decrease in insured capital. The Program would support the modernization of the insurance system with the overall objective of increasing the system’s financial viability and effectiveness in facilitating investment and safeguarding vulnerable livelihoods in the face of a rapidly changing climate. 54. Domestic consumers continue to face substantial health risks from low food safety and a lack of nutrition security. This is due to low awareness, insufficient food safety controls and low traceability, as well as fragmented and overlapping responsibilities across government entities, and a high degree of informality in the restaurant and food processing sector. For example, food sales outlets are currently not required to undergo sanitary inspections prior to receiving operation permits. Food safety challenges in key value chains include, inter alia, the large share of substandard olive oil in domestic consumption. Regarding nutrition security, key health indicators suggest that progress on combatting malnutrition has recently stalled while rates of over- and malnutrition have increased. To improve nutrition security, the Program will, amongst others, increase awareness and public capacity related to nutrition security in line with the priorities detailed in the recently published national nutrition strategy (2024- 2030). Page 17 The World Bank Transforming Agri-food Systems in Morocco Program (P181587) 55. RA#2 is built on the roadmap developed by the GoM with Food and Agriculture Organization (FAO) support, as part of the national policy dialogue on the transformation of agrifood systems. This roadmap was developed in response to the recommendations of the UN World Summits on Food Systems (September 2021 and July 2023), with a view to introducing new actions and solutions to advance the achievement of the Sustainable Development Goals, which rely on more efficient, inclusive, resilient, and sustainable food systems. The RA#2 also takes advantage of the ongoing technical assistance on the "One Health" initiative (P179256) at the regional level. 56. Organic farming can raise producer incomes as a result of increased farm profitability while performing well on sustainability metrics including GHG intensity and biodiversity. With organic farming being typically linked to mixed farming systems and agroecological practices, it can support farmers in diversifying economic risks and building resilience to extreme events. Due to the geographical proximity of the EU and rising interest of domestic consumers, expanding production could lead to significant opportunities for increasing farm revenues. The Program would support the expansion of organic farming including through increasing incentives for switching to and maintaining this production system and realigning the legal framework related to organic food with the requirements of international standards. The commercialization of organic farming products can also be supported through the Program of school meals coalition in Morocco. 57. Increasing food system circularity would create opportunities for job and value generation from organic and non-organic waste while improving environmental outcomes. Estimates for the Souss-Massa Region indicate that the formal sector only collects 22.5 percent of non-organic waste with 80 percent exported to other regions instead of being recycled locally. The Program will promote the food system’s shift towards increased circularity by supporting the emergence of a recycling platform for non-organic waste with the potential to process up to 30,000 tons of waste/year and create 500 direct and 2,000 indirect jobs. 58. M&E. MAPMDREF, through the DSS, would coordinate the M&E activities of the Program. It would compile and consolidate data and supporting documents, ensure data quality, and prepare and submit the reports to the Bank promptly. The Program’s M&E system would draw on existing government’s systems used to track the results of the GGS. To collect, consolidate, and report achievement of results and DLIs, the Program will take advantage of existing tracking mechanisms, tools, and types of records put in place for the activities and investments from the implementation of the PforR Green Generation (P170419). The online digital M&E tool has been developed that will be adapted for this operation (see details in the stand-alone Technical Assessment document in Portal). 59. Citizen engagement. The Program aims to empower citizens to participate in the development process and integrate citizen voices as key accelerators for achieving results. The objectives of citizen consultations include receiving input for improved decision-making on the implementation arrangements of the Program, to contribute to improved results and sustainability. The IRI#6 “at least one public consultation on the Program carried out each year” will allow for the continuous evaluation of citizen engagement throughout the Program’s implementation. The schedule and detailed agenda of the consultation will be defined in accordance with the Program implementation schedule for each activity and a report will be prepared accordingly with concrete actions to improve Program’s implementation. Consultation methods will include focus group discussions, household surveys and interviews, electronic consultations, and advisory/expert groups. Following each consultation, the PMU will create and implement an action plan in response to the collected feedback. The results of this action plan will be subsequently disclosed to the public. 60. Gender: female participation along agri-food value chains and the nutrition agenda. A 2019 gender study analyzed constraints and opportunities for women along the olive, citrus, and herb and medicinal plant value chains. It highlights a 49% gap in labor force participation between men and women and concludes that it is largely societal barriers that affect women's engagement and productivity in the sector. The study makes the following recommendations: (i) improve women’s access to information and advisory services, including training on quality promotion and marketing techniques; (ii) support the organization of women’s cooperatives to improve women’s access to essential production factors, finance and markets; (iii) reduce the wage gap, improve working conditions and social protection of seasonal workers; and (iv) optimize administrative procedures. In addition to contributing Page 18 The World Bank Transforming Agri-food Systems in Morocco Program (P181587) to supporting women’s inclusion in agri-food value chains, the Program would achieve maximum impact by focusing on improving nutrition outcomes for women, which lag those for men. Addressing the nutrition gap is a key lever for empowering women by improving their health and economic prospects, with positive ripple effects for overall household health. Healthier women are more likely to participate in the workforce, leading to increased equity in economic decision-making. A third of women of childbearing age suffer from anemia, which can affect their ability to participate in the labor market and generally affect human capital formation (with girls more seriously affected). According to national data included in the country’s recently published nutrition strategy, almost 60% of women between 15 and 49 years old are overweight or obese. Importantly, the prevalence of obesity among women (35.7%) is a third higher than that for men, resulting in an increased risk for non- communicable diseases for women. Indeed, 73% of women over the age of 60 suffer from NCDs compared to 55.5% for men. 61. Expected results of the proposed Program’s targeting of gender aspects. The Program will prioritize, in RA#1, women and youth in: (i) training programs for technicians and agricultural advisers (IRI#1.1 and IRI#1.2); and (ii) the provision of advisory services (IRI#1.3) through the creation of specific sub-groups for training and extension services. It will also prioritize farmers’ organizations with a particular emphasis on youth and women (such as promotion of access to specific machinery required for no-till agriculture) and provide targeted financial support to women and youth-led PAs, with calls for proposals that include specific criteria targeting these subgroups, and organic farming activities (IRI#3.10). These actions are designed to empower women, enhance their economic participation, and ultimately narrow the gender gap within Morocco’s agri-food value chains. The Program will also aim at closing the gender gap related to nutrition through awareness campaigns organized with the support of FAO aimed at changing dietary and nutrition practices. The final target of women to be reached by campaigns is estimated at 300,000. Campaign formats and messaging will be further fine-tuned with elaborate/extensive consultations and FAO expertise. The campaigns will respond to specific normative gender-based practices around nutrition. The proposed indicator is “Percentage of women reached by awareness campaigns changing practices related to nutrition and diets” (IRI#5.2). An impact evaluation (including behavior change studies) will be carried out to measure the changes of practices and progress towards the final target (set at 25%). 62. Climate Change and Disaster Risk Screening. Morocco is highly vulnerable to climate hazards including excessive heat, drought, flooding, wind and geophysical risks. Extreme weather events associated with climate change, particularly droughts and heat waves, are expected to increase in frequency and severity across the country. The agricultural sector experiences high exposure to these hazards, leading to high interannual variability of cereal rainfed agricultural production and threats to food security and farmer livelihoods. 63. GHG Analysis. The Program is projected to reduce emissions by 2.29 million tons of CO2 equivalent (tCO2e) over 20 years (Program implementation phase of 5 years, capitalization phase of 15 years), compared to the Without- Program scenario14. The predominant share of total emission reductions under the Program - amounting to around 2.2 million tCO2e over 20 years - result from the adoption of no-tillage agricultural practices on an additional 360,000 hectares as targeted by the Program under PDO#1 (RA#1, DLI#1, US$84.32 million). Emission reductions mostly stem from increased soil carbon sequestration and substantial decreases in fuel requirements linked to reduced tilling. Relative emission reductions due to the expansion of no-till agriculture correspond to 47 percent vis-à-vis the without Program scenario. The second significant contribution to the Program’s mitigation potential is linked to the expansion of organic agriculture in the olive sector (under RA#2, DLR#3.C, US$12.69 million) on a total area of 11,091 ha15 This is estimated to lower emissions by 94,223 tCO2e over 20 years, due to 14 To assess the net balance of GHG emitted or sequestered under the with-project scenario vs. without project scenario, a GHG analysis was conducted using the Ex-Ante Carbon-balance Tool (EX-ACT) version 9.4 for two Program results including (i) the expansion of no-till agriculture; and (ii) the expansion of organic agriculture. For the analysis, a warm temperate dry climate with high activity clay soils was assumed. 15 In line with the EFA, the GHG analysis assumes that 95 percent of the total expansion of the area certified under organic farming in relation to the Program target of 11,675 ha will take place in this olive subsector. Page 19 The World Bank Transforming Agri-food Systems in Morocco Program (P181587) the lower use of chemical inputs, especially N-fertilizers. Relative emission decreases linked to the expansion of organic amount to 23 percent compared to the without Program scenario. 64. Climate co-benefits. By aiming to increase the agrifood system’s resilience to climate change and its capacity to support efficient, sustainable and safe food value chains, the Program reflects the government’s commitment to strong climate action in both adaptation and mitigation. The Program will address the agriculture sector’s climate vulnerabilities through climate risk management tools combined with the repurposing of public support to support the transition toward climate-smart farming practices. Efficiency and sustainability of agricultural value chains is critical to reduce GHG emissions. The Program will contribute to substantial GHG emission reductions through increased carbon sequestration as outlined in the GHG analysis. 65. The proposed operation is fully aligned with the Paris Agreement on climate change adaptation and mitigation goals. 66. Adaptation. Investments supported by this operation are specifically designed to accelerate the sector's adaptation to climate change and by their nature, have limited exposure to climate change impacts with measures put in place to attenuate residual risks to an acceptable level. DLI#1 promotes the transition of farmers to CA practices on rainfed land (which are more climate resilient than traditional systems), actively supporting the sector's adaptation to increasingly dry conditions. DLI#1 will also promote the production of climate-resilient seeds. The reform of the agricultural insurance system (DLI#2) will actively support farmers' resilience to climate shocks. A limited subset of activities under DLI#3 (which supports high quality and safe food production), such as the modernization of olive mills, have a limited risk of being affected by climate change impacts. For example, low olive production due to prolonged drought could discourage investment in olive mills. This risk is reduced to an acceptable level by increased FDA support. The planned expansion of organic farming under DLI#3 is vulnerable to climate impacts (particularly drought), which could discourage farmers from converting to organic farming. Finally, the PAs (also DLI#3) face some climate-related risks as extreme weather events could prevent farmers from meeting commercial agreements, putting alliances at risk. The Program will mitigate this risk by providing capacity building and technical assistance (including on climate-smart practices and technologies) to participating farmers. DLI#5 is not directly at risk from climate impacts. 67. Mitigation. None of the activities under DLI#1-5 have a negative impact on the country's low greenhouse gas emissions development pathway, and the overall carbon balance of the Program indicates a significant reduction in emissions. DLI#1 will result in significant emission reductions while DLI#2 will likely be emission neutral. DLI#3 is expected to result in lower emissions due to decreased utilization of chemical inputs by farmers converting to organic farming. DLI #4 may lead to increased electricity consumption linked to additional cooling of food products, which will be mitigated through energy-efficient technologies, coolants with low Global Warming Potential and adequate food inventory management. DLI#5 will have no material impact on emissions. 68. The economic and financial analysis (EFA) demonstrates the economic justification of the Program. Due to a lack of data and methodological challenges, the EFA has been carried only for a limited subset of DLRs: the transition towards CA under DLI#1, as well as savings due to the reform of the Multi-Climate Risk insurance under DLI#2 and the adoption of organic farming under DLI#3. The analysis relied on a standard cost-benefit methodology, based on estimates derived from With-Program and Without-Program crop or activity models with incremental achievement of results. A twenty-year period of analysis (5-year Program implementation phase; 15-year Program capitalization phase), and a discount rate of 6 percent were applied, which is slightly higher than the prevailing opportunity cost of capital16. Additional details on the methodology and scenario assumptions are included in the Technical Assessment document. 69. The Program generates an indicative net present value (NPV) of US$43.2 million and an economic internal rate of return (EIRR) of 8.90 percent without integrating positive environmental externalities (base scenario). These economic results are satisfactory, given that several other program benefits in RA#2 (i.e. improved food and 16 See https://www.bkam.ma/Statistiques/Taux-d-interet/Taux-des-depots-a-terme. Page 20 The World Bank Transforming Agri-food Systems in Morocco Program (P181587) nutrition security leading to better health outcomes and avoided food loss and waste) could not be quantified and valued due to data limitations. 70. The valuation of environmental externalities further consolidates the Program’s economic justification. The project is estimated to reduce GHG emissions by up to 2.3 million tCO2-e over 20 years. When evaluating these environmental benefits using the social price of carbon estimates, the overall economic results achieved by the Program increase to an NPV of US$129.0 million and an EIRR of 13.67 percent under the low price of carbon scenario (LPC) and to an NPV of US$214.7 million and an EIRR of 17.78 percent under the high price of carbon scenario (HPC)17. When ecosystem services such as erosion prevention, climate regulation and soil fertility conservation are considered in the analysis18, the NPV and EIRR of the program record further substantial gains (see summary table below and more details in the stand-alone Technical Assessment document). Table 2: EFA Summary Base + CO2 Base + CO2 Base + Base + Base + Indicator Base (LCP) (HCP) Ecosystem Ecosystem Ecosystem services services + LCP services + HCP EIRR (%) 8.90% 13.67% 17.78 11.85% 16.13% 19.96% NPV (US$ million) 43.2 129.0 214.7 94.2 180.0 265.7 B. Fiduciary 71. An Integrated Fiduciary Systems Assessment (IFSA) found that the existing fiduciary systems of implementing entities meet Bank PforR financing requirements (see Fiduciary Systems Assessment for further details). This is contingent on implementing the agreed fiduciary mitigation measures and actions in the Program Action Plan (PAP). The implementing entities (MAPMDREF and affiliated agencies ONCA, ONSSA, ADA, INRA, IAV Hassan II) are experienced with PforR financing, having participated in two Bank-funded operations (P158346-Strengthening Agri-Food Value Chains and P170419-Morocco Green Generation Programs). Their fiduciary systems ensure that financing supports Program objectives with principles of economy, efficiency, effectiveness, transparency, and accountability. Public Financial Management (FM) and procurement systems meet Bank requirements for PforR implementation. The entities have strong legal and institutional frameworks, effective FM planning, budget systems, and governance with clear internal controls. The new Public Procurement Decree No. 2-22-431 enhances procurement processes, ensuring higher value for money, transparency, competitiveness, efficiency, and fairness. 72. The overall fiduciary risk is deemed to be Moderate, and appropriate mitigation measures are included in the PAP. The main risks and challenges include: (i) monitoring the PEF alongside other WB or donor-financed operations; (ii) improving coordination for data collection for financial statements; (iii) enhancing procurement planning capacity due to the new Public Procurement Degree (PPD) requiring a 3-year plan; (iv) slow handling of procurement-related complaints; (v) absence of a suspension and debarment check mechanism, risking contracts to debarred or suspended firms; and (vi) delays in contract implementation, as noted in some IGF reports. 73. Program implementing entities have acceptable FM systems but are under ex-ante financial control by public administration. This limits their autonomy, fund usage, flexibility, and overall performance. All affiliated agencies (ONCA, ONSSA, ADA, INRA, and IAV Hassan II) are currently under prior control by MEF through a state controller and a treasurer, as per Law No. 69-00. It is recommended that entities explore the transition from ex ante control to "contrôle d’accompagnement" to reduce state controller and treasurer intervention in budget execution. 74. The PAP includes specific, time-bound actions aimed at mitigating fiduciary risks, ensuring adequate budget and procurement execution of the PEF and effective accountability and transparency mechanisms . The PforR instrument aims to enhance transparency, resource predictability, budget execution, and anti-corruption 17 Guidance note on shadow price of carbon in economic analysis. World Bank, September 2023. 18 Economic values for ecosystem services: A global synthesis and way forward, Ecosystems Services (66), April 2024. Page 21 The World Bank Transforming Agri-food Systems in Morocco Program (P181587) mechanisms. Implementing entities need capacity and systems strengthening for effective budget planning, execution, and accountability. Procurement and FM risks will be mitigated through key actions in the PAP. 75. The implementing entities will execute the activities following the Bank’s “Guidelines on Preventing and Combating Fraud and Corruption in Program-for-Results Financing” (dated February 1, 2012, revised July 10, 2015). The Program's ex ante and ex post arrangements are adequate to address fraud and corruption risks. Supported by INPPLC, the PMU will share information on fraud and corruption allegations with the Bank, investigate credible allegations, report actions taken, and cooperate with Bank inquiries. Implementing entities will monitor and comply with the Bank’s debarred/suspended list. Compliance with Anti-Corruption Guidelines (ACG) will be detailed in the POM. The PMU will prepare periodic ACG Reports. Portfolio-level arrangements for governance and anti-corruption management are being finalized with the Government and will apply once the Memorandum of Understanding (MoU) is signed. 76. Fiduciary arrangements for IPF component. Funds transferred to FAO will be managed in accordance with the UN Financial Regulations and Rules, based on the reports of the UN agency's external auditor. Audit requirements can be eliminated during project implementation and FAO must submit semi-annual financial reports. The government is responsible for ensuring the effective delivery of works, goods and services to beneficiaries and must implement monitoring mechanisms to mitigate risks. If deemed appropriate by the GoM and the WB, a private company may be selected to implement the IPF component. Any company selected would need to adhere to the WB's financial management procedures, including the submission of annual work plans, semi-annual financial reports and audited financial statements. Following signature of the Agreement between FAO and the GoM, the PMU will prepare and submit the Withdrawal Request to the Bank, using special disbursement procedures specified in the Disbursement and Financial Information Letter (DFIL) to establish a ‘global commitment’. If a private company is selected, the authorized disbursement methods will be reimbursement and direct payment as specified in DFIL. The POM will provide full details of all these procedures and requirements applicable to the IPF component. 77. Procurement exclusion. The Program is not expected to procure large contracts exceeding Operations Procurement Review Committee (OPRC) thresholds (US$75 million for works, US$50 million for goods/non- consulting services, US$20 million for consultant services), based on procurement data analysis of implementing entities. The PMU must report any large contracts. The WB team will monitor fiduciary systems and contract management to identify any large-value contracts. C. Environmental and Social 78. An Environmental and Social Systems Assessment (ESSA) has been conducted to inform Program preparation . It examines the Environmental and Social Management Systems (ESMS) applicable to the Program to evaluate compliance with the provisions of the WB Policy and Directive on PforR Financing and ensure that the E&S risks of the Program are well managed. The results of the ESSA inform the Program design, and key measures to improve E&S risk management are included in the PAP and/or the Results Framework. The development of the ESSA also provides a platform to engage stakeholders in consultations on E&S aspects. The draft ESSA report was published on the MAPMDREF’s website and was discussed during a consultation workshop held on November 14, 2024. The final version of ESSA, which included the results of the consultation, was disclosed on November 21, 2024. 79. E&S risks of the 24 activities, related to all intermediate Results Indicators (IRIs), are low to moderate and therefore none of them were excluded from the Program. All activities proposed under Program were assessed in line with the Bank’s PfoR policy (paragraph 10). The activities were also reviewed to identify specific risk mitigation measures. The activities with the potential to generate environmental risks are mainly those with construction. The potential negative impacts of these activities are not significant, small scale, and geographically limited. The mitigation measures are known (generally those adopted for construction sites) and their implementation is feasible. 80. For activities with moderate social and environmental effects, mitigation measures will be identified by the respective Environmental and Social Impact Assessments (ESIAs) and implemented at each phase (preliminary Page 22 The World Bank Transforming Agri-food Systems in Morocco Program (P181587) design, detailed preliminary design, project execution, file of tenders, installation of the site and works, restoration of the site, and the operation phase). The ESSA offers a screening sheet which will first verify the eligibility of activities and then categorize the activities selected according to their level of E&S risks. Depending on the level of E&S risk, the focal point will determine the appropriate E&S instruments which will support the implementation of the activity in question and will ensure adequate E&S monitoring and reporting. 81. E&S risks related to the IPF component are low and were assessed through the Environmental and Social Review Summary (ESRS). The ESCP with relevant commitments related to stakeholder engagement and labor and working conditions has been prepared and disclosed during appraisal on November 13, 2024. 82. Morocco has a legal framework concerning E&S management and impact assessments and reliable country systems in place to manage the risks associated with the Program’s activities. The regulatory and institutional frameworks underlying the national ESMS have been assessed to correspond to WB PforR policy. The scope, procedures, and principles of the EIAs in Morocco are generally aligned with international practices. Environmental management and EIA procedures are both clear at the technical level and sound at the institutional level. The main gaps identified are (a) limited integration of social aspects in impact assessment studies; (b) gaps in implementation of public consultations involving Program-affected parties; and (c) constraints in the integration of Environmental and Social Management Plans (ESMPs) in impact assessment studies, including M&E of mitigation measures. To address these gaps identified in the ESSA, the Program will implement targeted capacity- building measures to enhance the performance of ESMS, focusing on M&E and E&S management capacities. 83. The Program’s implementation entities have built E&S management experience through 15 years of operations financed by the Bank. The involved ministries (MAPMDREF, MSPS, and MI) have developed environmental and social risk management guidebooks and manuals within the framework of their respective PforRs. These guidebooks have been or are being implemented through an organization established for Bank-financed projects. In all cases, this involves a central E&S focal point within the PMU supported by decentralized E&S focal points within the executing agencies. The E&S performances of all these Programs are rated satisfactory to moderately satisfactory. The proposed Program is an opportunity to further strengthen E&S management capacity. 84. Grievance Redress. Communities and individuals who believe that they are adversely affected as a result of a Bank supported PforR, as defined by the applicable policy and procedures, may submit complaints to the existing program grievance mechanism or the Bank’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed to address pertinent 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 at any time after concerns have been brought directly to the Bank's attention, and Bank Management has been given an opportunity to respond. For information on how to submit complaints to the Bank’s Grievance Redress Service (GRS), visit https://www.worldbank.org/GRS. For information on how to submit complaints to the Bank’s Accountability Mechanism, visit https://accountability.worldbank.org. D. IPF appraisal 85. The IPF component is dedicated to the provision of Technical Assistance for Program implementation through a Technical Assistance Agreement signed between the GoM and the Food and Agriculture Organization (FAO) . The scope of this TA is detailed in Section II. C. (vi). The agreement will be signed by using the new Standard Form of Agreement dated July 2024 for TA between the WB Borrowers and UN agencies. If another entity is selected to replace or complement the FAO during the implementation of the Program, the World Bank's IPF procurement rules would also apply. Page 23 The World Bank Transforming Agri-food Systems in Morocco Program (P181587) E. Program Action Plan @#&OPS~Doctype~OPS^dynamics@padpfrannexprogramactionplan#doctemplate Action Completion Description Source DLI# Responsibility Timing Measurement Recruitment of Technical NA MAPMDREF Due Date 01-Apr-2025 TA recruitment TA for PMU contract signed Appointment Environmental NA PMU / Other Within 30 days Mission of E&S Focal and Social implementing after effective Statement Points Systems entities date (ED) Development / Environmental NA PMU/E&S Other Assessment / Template reporting of and Social Focal Point implementation approved by GRM Systems within 90 / 180 WB days after ED Collection / Environmental NA PMU/E&S Recurrent Semi-Annually Half-yearly processing of and Social focal points report grievances Systems submitted (GRM) Procurement Fiduciary NA MAPMDREF / Recurrent Yearly Reports reporting Systems PMU available Establishment Technical NA MAPMDREF / Due Date 30-Jun-2025 M&E system of a M&E PMU operational system Conduct a Other NA MAPMDREF / Due Date 30-Jun-2027 Findings of MTR MTR PMU / WB endorsed by Steering Committee ESIAs. ESMPs, Environmental NA MAPMDREF, Other Before start of ESIAs, ESMPs, RAPs (cf. ESSA) and Social involved construction and RAPs Systems Wilayas (cf. ESSA) approved by the WB E&S technical Environmental NA MAPMDREF Other Manual: within E&S technical manual & and Social and involved 30 days after manual /sheets related Systems stakeholders ED; reporting validated by monitoring (cf. ESSA) the Bank Stakeholder Environmental NA All involved Other Within 90 days SEP and related Engagement and Social entities after ED monitoring Plan and Systems outlined in reports reporting ESSA validated by the Bank Page 24 The World Bank Transforming Agri-food Systems in Morocco Program (P181587) Strategic Environmental NA MAPMDREF Other Within 180 SESA revised by Environmental and Social days after ED WB and and Social Systems consulted. Assessment V. RISKS 86. The overall risk is rated Moderate. The technical design risk is rated Substantial due to the high level of ambition of DLI#1 and the complexity of some reforms involving different stakeholders included in the DLI#2 as summarized in the table below. A detailed analysis of the technical risks is included in the Technical Assessment document as well as the Implementation Support Plan which will contribute to mitigate the risks, in addition to the technical assistance provided by FAO under the IPF component. Table 3: Description of technical design risks and mitigation measures Description of Risk Mitigation measures Technical Risk (Substantial) The pace of farmers’ adoption to the The Program follows a comprehensive approach to address technical, financial and CA practices is lower than planned due social bottlenecks that could slow technology adoption. The risk of low technical to low technical capacity and capacity and awareness will be mitigated by strengthening advisory services focused awareness combined with risk on CA, supported by FAO and WB technical assistance (see also implementation aversion to switching practices support plan in the stand-alone technical assessment for more details). The risk of low (DLI#1). adoption due to farmers' risk aversion will be reduced by facilitating farmers' access to the machinery and inputs needed to adopt CA through smallholder organizations, and by increasing financial incentives through the revision of the FDA subsidy scheme. Delay in the creation of the PCRA; high The Minister of MAPMDREF has already endorsed the decision to reform the current cost and lack of financial sustainability system and to create the PCRA for unfavorable areas. The development of the PCRA due to massive enrollment of farmers is already at advanced stage. The maximum amount allocated to the PCRA and the in the PCRA; low enrollment in new agriculture insurance scheme will be capped and PCRA eligibility criteria will be tied insurance product for farmers with to conditions requiring the adoption of more climate resilient practices (farmers will high productivity due to low benefit from advisory services). MAMDA and MAPMDREF will carry out awareness (DLI#2) communication campaigns on the nature and objectives of the reform. Page 25 The World Bank Transforming Agri-food Systems in Morocco(P181587) ANNEX 1. RESULTS FRAMEWORK @#&OPS~Doctype~OPS^dynamics@padpfrannexpolicyandresult#doctemplate Program Development Objective(s) The PDO is to increase the agrifood system's resilience to climate change and strengthen food safety and quality. PDO Indicators by Outcomes Baseline Period 1 Period 2 Period 3 Period 4 Closing Period PDO Outcome #1: Conservation agriculture in rainfed farming areas scaled up Landscapes under enhanced conservation and/or sustainable management (terrestrial and inland water areas) (Hectare(Ha)) CRI DLI Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 120,000 200,000 270,000 340,000 410,000 480,000 PDO #1 / DLR #1.C: Area transitioning towards conservation agriculture (Hectare(Ha)) DLI Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 120,000 200,000 270,000 340,000 410,000 480,000 PDO Outcome #2: Climate risk management improved People covered by disaster risk finance and insurance (Number of people) CRI Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 0 31,818 37,500 43,182 48,864 54,545 People covered by disaster risk finance and insurance - Female (Number of people) CRI Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 0 1,591 1,875 2,159 2,443 2,727 People covered by disaster risk finance and insurance - Youth (Number of people) CRI Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 0 6,364 7,500 8,636 9,773 10,909 PDO Outcome #3: Food safety, food quality, and nutrition security strengthened People benefitting from strengthened food safety, food quality and nutrition security (Number of people) Page 26 The World Bank Transforming Agri-food Systems in Morocco(P181587) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 0 100,000 225,000 325,000 450,000 600,000 people with strengthened food safety and nutrition - Female (Number of people) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 0 50,000 112,500 162,500 225,000 300,000 people with strengthened food safety and nutrition - Youth (Number of people) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 0 20,000 45,000 65,000 90,000 120,000 PDO Outcome #4: Increased awareness and capacity related to nutrition security People with increased awareness and capacity related to nutrition security (Number of people) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 0 100,000 200,000 300,000 400,000 500,000 Intermediate Indicators by Results Areas Baseline Period 1 Period 2 Period 3 Period 4 Closing Period RA#1: Improved climate resilience and risk management in rainfed agriculture IRI 1.1: Technicians trained in NT/CA (Number of people) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 0 330 660 990 1,320 1,650 IRI 1.1: Technicians trained in NT/CA (Number of people) - Female (Number of people) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 0 106 211 317 422 528 IRI 1.1: Technicians trained in NT/CA (Number of people) - Youth (Number of people) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 0 330 660 990 1,320 1,650 IRI#1.2: Agricultural advisers trained on NT/CA (Number of people) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 40 50 60 70 80 100 IRI#1.2: Agricultural advisers trained on NT/CA - Female (Number of people) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 12 15 18 21 24 30 Page 27 The World Bank Transforming Agri-food Systems in Morocco(P181587) IRI#1.2: Agricultural advisers trained on NT/CA - Youth (Number of people) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 14 18 21 25 28 35 IRI 1.3: Farmers benefitting from agricultural advisory on NT/CA (Number of people) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 10,000 28,000 46,000 64,000 82,000 100,000 Farmers benefitting from agricultural advisory on NT/CA - Female (Number of people) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 500 1,400 2,300 3,200 4,100 5,000 Farmers benefitting from agricultural advisory on NT/CA - Youth (Number of people) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 1,500 4,200 6,900 9,600 12,300 15,000 IRI 1.4: CNRG operational (Yes/No) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 No No No yes yes yes IRI 1.5: Production of certified G1 & G2 pre-basic seeds increased (Tones/year) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 60 80 100 120 140 160 DLR 1.A / IRI 1.6: Direct seeders available to farmers (Number) DLI Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 800 1,000 1,200 1,400 1,600 1,800 DLR 1.B / IRI 1.7: FDA incentives repurposed to promote adoption of NT/CA practices (Yes/No) DLI Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 No No No Yes Yes Yes DLR 1.B.a / IRI 1.7.1: FDA subsidy for conventional seeders reduced from 50% to 30% (Yes/No) DLI Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 No No No Yes Yes Yes DLR 1.B.b / IRI 1.7.2: New FDA subsidy for the use of improved seeds for leguminous and fodder approved (Yes/No) DLI Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 No Yes Yes Yes Yes Yes IRI 1.8: Insurance premium reduced for farmers transitioning towards CA (Yes/No) Dec/2024 Dec/2025 Dec/2026 Dec/2026 Dec/2028 Dec/2029 No yes yes yes yes yes IRI 1.9: Area covered by NT/CA M&E and impact measurement platform (Hectare(Ha)) Page 28 The World Bank Transforming Agri-food Systems in Morocco(P181587) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 20,000 30,000 60,000 100,000 100,000 100,000 DLR 2.A / IRI 2.1: Program for Climate Resilience and Adaptation (PCRA) to cover uninsurable areas established (Yes/No) DLI Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 No Yes Yes Yes Yes Yes IRI 2.2 Modernized agriculture insurance product for insurable areas developed and introduced (Yes/No) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 No yes yes yes yes yes IRI 2.3: Parametric index established (Yes/No) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 No No Yes Yes Yes Yes DLR 2.B / IRI 2.4: Area covered by reformed agricultural risk management system (Hectare(Ha)) DLI Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 0 700,000 825,000 950,000 1,075,000 1,200,000 RA#2: Strengthened Food Safety, Food quality and Nutrition Security DLR 3.A / IRI 3.1: FDA support for upgrading olive mills increased from 10% to at least 20% (Yes/No) DLI Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 No yes yes yes yes yes IRI 3.2 Inventory of olive mills completed (Yes/No) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 No No Yes Yes Yes Yes IRI 3.3: Information system for olive oil value chain operational (Yes/No) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 No No No Yes Yes Yes IRI 3.4: Olive mills authorized (Number) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 360 460 560 660 760 860 IRI# 3.5: Samples taken annually for olive oil quality control (Number) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 400 800 1,200 1,600 2,000 2,400 IRI 3.6: Two specifications relating to the regulations for organic farming revised (Yes/No) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 No No Yes Yes Yes Yes DLR 3.B /IRI 3.7: FDA support for converting to and maintaining organic farming enhanced (Yes/No) DLI Page 29 The World Bank Transforming Agri-food Systems in Morocco(P181587) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 No No Yes Yes Yes Yes IRI 3.8: Virtual Technical Center for the Development of Organic Farming operational (Yes/No) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 No No Yes Yes Yes Yes IRI 3.9: Technicians trained in organic farming (Number of people) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 0 200 400 600 800 1,000 IRI 3.9: Technicians trained in organic farming - Female (Number) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 0 64 128 192 256 320 IRI 3.9: Technicians trained in organic farming - Youth (Number of people) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 0 200 400 600 800 1,000 IRI 3.10: Business Plans for Productive Alliances prepared (Number) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 10 10 30 30 30 30 DLR 3.C / IRI 3.11: Area certified under organic farming (Hectare(Ha)) DLI Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 13,325 13,325 15,500 17,500 21,000 25,000 DLR 3.D / IRI 3.12: Regulations governing food product quality aligned with international standards (Number) DLI Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 0 0 0 3 3 3 IRI 4.1: Platform Rokhas updated with new module for sanitary authorization (Yes/No) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 No Yes Yes Yes Yes Yes DLR 4.A / IRI 4.2: Joint order requiring food sales outlets to obtain sanitary approval published (Yes/No) DLI Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 No Yes Yes Yes Yes Yes IRI 4.3: BCH staff trained (Number) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 60 200 380 560 720 880 DLR 4.B / IRI 4.4: Bureau Communal d’Hygiene (BCH) operational (Number) DLI Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Page 30 The World Bank Transforming Agri-food Systems in Morocco(P181587) 270 290 310 330 350 370 IRI 4.5: Inventory of food sales outlets completed (Yes/No) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 No Yes Yes Yes Yes Yes DLR 4.C / IRI 4.6: Food sales outlets authorized at sanitary level (Number) DLI Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 0 200 450 650 900 1,200 IRI 5.1: Action plan for the implementation of the School Meals Coalition elaborated (Yes/No) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 No No Yes Yes Yes Yes IRI 5.2: Women reached by awareness-raising campaigns on good practices related to nutrition and diets (Number) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 0 60,000 120,000 180,000 240,000 300,000 Percentage of women reached by awareness campaigns changing practices related to nutrition and diets (Percentage) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 0 0 0 10 15 25 DLR 5.A / IRI 5.3: Master on Nutrition accredited at IAV (Yes/No) DLI Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 no No no yes yes yes DLR 5.A.a / IRI 5.3.1: Dossier of accreditation submitted to the competent authorities. (Yes/No) DLI Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 No No Yes Yes Yes Yes DLR 5.A.b / IRI 5.3.2: Accreditation obtained (Yes/No) DLI Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 No No No Yes Yes Yes DLR 5.B / IRI 5.4: Master dedicated to OH accredited at the IAV Hassan II (Yes/No) DLI Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 no no no yes yes yes DLR 5.B.a / IRI 5.4.1: Dossier of accreditation submitted to the competent authorities (Yes/No) DLI Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 No No yes yes yes yes DLR 5.B.b / IRI 5.4.2: Accreditation obtained (Yes/No) DLI Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 No no no yes yes Yes Page 31 The World Bank Transforming Agri-food Systems in Morocco(P181587) IRI 5.5: Technical and financial studies for the VDPA (‘Valorisation des Déchets Plastiques Agricoles’) recycling platform completed (Yes/No) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 No Yes Yes Yes Yes Yes DLR 5.C / IRI 5.6: Action plan to reduce food losses in fruit & vegetable value chains adopted by FIFEL interprofession (Yes/No) DLI Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 No No Yes Yes Yes Yes IRI #6: Annual public consultations organized (Yes/No) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 No Yes Yes Yes Yes Yes Disbursement Linked Indicators (DLI) Period Period Definition Period 1 Dec 2025 Period 2 Dec 2026 Period 3 Dec 2027 Period 4 Dec 2028 Period 5 Dec 2029 Baseline Period 1 Period 2 Period 3 Period 4 Period 5 1:DLR 1.A / IRI 1.6: Direct seeders available to farmers (Number ) 800 1,000 1,200 1,400 1,600 1,800 0.00 6,519,000.00 6,519,000.00 6,519,000.00 6,519,000.00 6,519,000.00 DLI allocation 32,595,000.00 As a % of Total DLI Allocation 10.7% 2:DLR 1.B / IRI 1.7: FDA incentives repurposed to promote adoption of NT/CA practices (Yes/No ) No Yes Yes Yes Yes yes 0.00 4,346,000.00 0.00 4,346,000.00 0.00 0.00 DLI allocation 8,692,000.00 As a % of Total DLI Allocation 2.85%  2.1:DLR 1.B.a / IRI 1.7.1: FDA subsidy for conventional seeders reduced from 50% to 30% (Yes/No ) Page 32 The World Bank Transforming Agri-food Systems in Morocco(P181587) No No No Yes Yes Yes 0.00 0.00 0.00 4,346,000.00 0.00 0.00 DLI allocation 4,346,000.00 As a % of Total DLI Allocation 1.43%  2.2:DLR 1.B.b / IRI 1.7.2: New FDA subsidy for the use of improved seeds for leguminous and fodder approved (Yes/No ) No Yes Yes Yes Yes Yes 0.00 4,346,000.00 0.00 0.00 0.00 0.00 DLI allocation 4,346,000.00 As a % of Total DLI Allocation 1.43% 3:Landscapes under enhanced conservation and/or sustainable management (terrestrial and inland water areas) (Hectare(Ha) ) 120,000 200,000 270,000 340,000 410,000 480,000 0.00 9,561,111.00 8,365,972.00 8,365,972.00 8,365,972.00 8,365,973.00 DLI allocation 43,025,000.00 As a % of Total DLI Allocation 14.13%  3.1:PDO #1 / DLR #1.C: Area transitioning towards conservation agriculture (Hectare(Ha) ) 120,000 200,000 270,000 340,000 410,000 480,000 0.00 9,561,111.00 8,365,972.00 8,365,972.00 8,365,972.00 8,365,973.00 DLI allocation 43,025,000.00 As a % of Total DLI Allocation 14.13% 4:DLR 2.A / IRI 2.1: Program for Climate Resilience and Adaptation (PCRA) to cover uninsurable areas established (Yes/No ) No Yes Yes Yes Yes yes 0.00 10,865,000.00 0.00 0.00 0.00 0.00 DLI allocation 10,865,000.00 As a % of Total DLI Allocation 3.57% 5:DLR 2.B / IRI 2.4: Area covered by reformed agricultural risk management system (Hectare(Ha) ) 0 700,000 825,000 950,000 1,075,000 1,200,000 0.00 47,913,834.00 8,556,042.00 8,556,042.00 8,556,042.00 8,556,040.00 DLI allocation 82,138,000.00 As a % of Total DLI Allocation 26.97% 6:DLR 3.A / IRI 3.1: FDA support for upgrading olive mills increased from 10% to at least 20% (Yes/No ) No Yes Yes Yes Yes Yes 0.00 5,432,000.00 0.00 0.00 0.00 0.00 DLI allocation 5,432,000.00 As a % of Total DLI Allocation 1.78% 7:DLR 3.B /IRI 3.7: FDA support for converting to and maintaining organic farming enhanced (Yes/No ) No No Yes Yes Yes Yes 0.00 0.00 5,432,000.00 0.00 0.00 0.00 DLI allocation 5,432,000.00 As a % of Total DLI Allocation 1.78% Page 33 The World Bank Transforming Agri-food Systems in Morocco(P181587) 8:DLR 3.C / IRI 3.11: Area certified under organic farming (Hectare(Ha) ) 13,325 13,325 15,500 17,500 21,000 25,000 0.00 0.00 2,363,158.00 2,173,019.00 3,802,784.00 4,346,039.00 DLI allocation 12,685,000.00 As a % of Total DLI Allocation 4.17% 9:DLR 3.D / IRI 3.12: Regulations governing food product quality aligned with international standards (Number ) 0 0 0 3 3 3 0.00 0.00 0.00 6,519,000.00 0.00 0.00 DLI allocation 6,519,000.00 As a % of Total DLI Allocation 2.14% 10:DLR 4.A / IRI 4.2: Joint order requiring food sales outlets to obtain sanitary approval published (Yes/No ) No Yes Yes Yes Yes Yes 0.00 5,432,000.00 0.00 0.00 0.00 0.00 DLI allocation 5,432,000.00 As a % of Total DLI Allocation 1.78% 11:DLR 4.B / IRI 4.4: Bureau Communal d’Hygiene (BCH) operational (Number ) 270 290 310 330 350 370 0.00 2,824,800.00 2,824,800.00 2,824,800.00 2,824,800.00 2,824,800.00 DLI allocation 14,124,000.00 As a % of Total DLI Allocation 4.64% 12:DLR 4.C / IRI 4.6: Food sales outlets authorized at sanitary level (Number ) 0 200 450 650 900 1,200 0.00 1,955,667.00 2,444,583.00 1,955,667.00 2,444,583.00 2,933,500.00 DLI allocation 11,734,000.00 As a % of Total DLI Allocation 3.85% 13:DLR 5.A / IRI 5.3: Master on Nutrition accredited at IAV (Yes/No ) no no no yes yes yes 0.00 0.00 1,850,000.00 866,000.00 0.00 0.00 DLI allocation 2,716,000.00 As a % of Total DLI Allocation 0.89%  13.1:DLR 5.A.a / IRI 5.3.1: Dossier of accreditation submitted to the competent authorities. (Yes/No ) No no yes yes yes yes 0.00 0.00 1,850,000.00 0.00 0.00 0.00 DLI allocation 1,850,000.00 As a % of Total DLI Allocation 0.61%  13.2:DLR 5.A.b / IRI 5.3.2: Accreditation obtained (Yes/No ) No no no yes yes yes 0.00 0.00 0.00 866,000.00 0.00 0.00 Page 34 The World Bank Transforming Agri-food Systems in Morocco(P181587) DLI allocation 866,000.00 As a % of Total DLI Allocation 0.28% 14:DLR 5.B / IRI 5.4: Master dedicated to OH accredited at the IAV Hassan II (Yes/No ) no no no yes yes yes 0.00 0.00 1,850,000.00 866,000.00 0.00 0.00 DLI allocation 2,716,000.00 As a % of Total DLI Allocation 0.89%  14.1:DLR 5.B.b / IRI 5.4.2: Accreditation obtained (Yes/No ) No no yes yes yes yes 0.00 0.00 1,850,000.00 0.00 0.00 0.00 DLI allocation 1,850,000.00 As a % of Total DLI Allocation 0.61%  14.2:DLR 5.B.a / IRI 5.4.1: Dossier of accreditation submitted to the competent authorities (Yes/No ) No no no yes yes yes 0.00 0.00 0.00 866,000.00 0.00 0.00 DLI allocation 866,000.00 As a % of Total DLI Allocation 0.28% 15:DLR 5.C / IRI 5.6: Action plan to reduce food losses in fruit & vegetable value chains adopted by FIFEL interprofession (Yes/No ) No No Yes No No No 0.00 0.00 3,259,000.00 0.00 0.00 0.00 DLI allocation 3,259,000.00 As a % of Total DLI Allocation 1.07% Page 35 The World Bank Transforming Agri-food Systems in Morocco (P181587) Monitoring & Evaluation Plan: PDO Indicators by PDO Outcomes RA#1: Improved climate resilience and risk management in rainfed agriculture PDO Outcome #1: Conservation agriculture in rainfed agriculture scaled up PDO Indicator#1: Area transitioning towards conservation agriculture (in ha) CRI: Landscapes under enhanced conservation and/or sustainable management (terrestrial and inland water areas) This indicator will measure the evolution of area under No-tillage, and/or practicing comprehensive Conservation Agriculture practices in the Program Area (with no-tillage, crop rotation and improved seeds), disaggregated by type of practice. The minimal condition to be met for land to be counted towards this indicator is the adoption of no-tillage Description agriculture. No-Tillage and Conservation Agriculture Practices contribute to environmental benefits including increased soil fertility through soil organic-matter accumulation, increased water retention capacity, decreased erosion as well as increased soil biodiversity and carbon sequestration. Frequency Semi-annually Data source DDFP/INRA/ONCA (SISCA platform19) + Digital Platform (IRI#1.9) Data will be collected by the DDFP at regional level through the current monitoring system (SISCA) dedicated to the Methodology for Data implementation of the National No-Tillage Program or other means of data collection. Once operational, data collected Collection through the digital NT/CA impact measurement platform (IRI#1.9) will be complemented with field-level information. Responsibility for Data  DDFP / INRA / ONCA Collection RA#1: Improved climate resilience and risk management in rainfed agriculture PDO Outcome # 2: Climate risk management improved PDO Indicator#2: People covered by disaster risk finance and insurance (including beneficiaries from the Program for Climate Resilience and Adaptation (PCRA) and the modernized agricultural insurance) CRI: People with enhanced resilience to climate risks (standard sub-indicator: “People covered by disaster risk finance and insurance”) This indicator will measure the evolution of the number of farmers subscribing to climate risk coverage mechanisms in the Description Program Area: (i) the PCRA for non-insurable areas; and (ii) those subscribing to the modernized insurance product for insurable areas. Frequency Semi-annually Data source MAMDA database Methodology for Data Data will be collected by the DF using the lists of farmers covered by the two climate risk coverage mechanisms. These lists Collection are sent by MAMDA to the DF semi-annually after the end of each agricultural season. Responsibility for Data  DF Collection RA#2: Food safety, food quality and nutrition security strengthened PDO Outcome #3: Food safety, food quality and nutrition security strengthened PDO Indicator#3: Number of people benefitting from strengthened food safety, food quality and nutrition security CRI: custom sub-indicator under evaluation to be linked to CRI “People with strengthened food and nutrition security” This indicator will measure the total number of people who benefit from improved food safety from the authorized foods Description sale outlets in Program Area. Frequency Semi-annually Data source MI reports The number of beneficiaries will be estimated based on the following assumptions. Each food sale outlet authorized is Methodology for Data assumed to provide an additional 500 people annually with access to food with increased food safety. Annual surveys will be Collection carried out based on samples of authorized food sales outlets (e.g., hotels, restaurants, etc.) to verify the achievement of the indicator. Responsibility for Data MI Collection 19 Agricultural Campaign Monitoring Information System ( Système d'Information de Suivi de la Campagne Agricole) Page 36 The World Bank Transforming Agri-food Systems in Morocco (P181587) RA#2: Food safety, food quality and nutrition security strengthened PDO Outcome #4: Increased awareness and capacity related to nutrition security PDO Indicator#4: Number of people with increased awareness and capacity related to nutrition security The PDO indicator measures the number of people targeted by awareness campaigns related to nutrition security and diets Description (related to IRI#5.2) in the Program Area. Frequency Semi-annually  Data source DSS reports The DSS, through the FAO in the IPF component, will hire communication services to organize the awareness campaigns. The Methodology for Data related terms of references will require communication services to track of the number of people reached by the campaigns Collection and select samples to monitor and verify the achievement of IRI#5.2. Responsibility for Data DSS with FAO support Collection Monitoring & Evaluation Plan: Intermediate Results Indicators by Results Areas RA#1: Improved climate resilience and risk management in rainfed agriculture DLI#1. Support to the transition towards Conservation Agriculture in rainfed production areas IRI#1.1: Number of technicians trained in NT/CA (DEFR) IRI#1.2 : Number of agricultural advisers trained on NT/CA (ONCA) IRI#1.3: Number of farmers benefitting from agricultural advisory on NT/CA (ONCA) IRI#1.4: CNRG operational (INRA) IRI#1.5: Production of certified G1 & G2 pre-basic seeds increased (INRA) DLR#1.A / IRI#1.6: Number of direct seeders available to farmers (DDFP) DLR#1.B / IRI#1.7: FDA incentives repurposed to promote adoption of NT/CA practices (DF) IRI#1.8: Insurance premium reduced for farmers transitioning towards CA (DF) IRI#1.9: Area covered by NT/CA M&E and impact measurement platform (INRA) PDO#1 / DLR#1.C / IRI#1.10: Area transitioning towards CA practices (DDFP) IRI#1.1: this indicator measures the number of technicians of agricultural schools trained in NT/CA practices to support farmers in their transition towards CA. The following assumptions are used for disaggregation by gender and age group: (i) female: 32 percent; and (ii) youth: 100 per cent (as all technicians are under 40). IRI#1.2: this indicator measures the number of ONCA’s agricultural advisers trained on NT/CA practices. The following assumptions are used for disaggregation by gender and age group: (i) female: 30 percent; and (ii) youth: 35 per cent. IRI#1.3: this indicator measures the number of farmers benefitting from NT/CA farm advisory services. The following assumptions are used for disaggregation by gender and age group : (i) female: 5 percent; and (ii) youth: 15 per cent. IRI#1.4: this indicator tracks the operationalization of the new Genetic Resources Center in the Rabat-Sale-Kenitra Region (i.e, fully equipped and staffed). Description IRI#1.5: this indicator measures the volume of the production of certified G1 & G2 pre-basic seeds for cereals. DLR#1.A / IRI#1.6: this indicator will measure the number of direct seeders (DS) made available to farmer organizations by MAPMDREF, and the number of direct seeders acquired by individual farmers with FDA support in the Program area. DLR#1.B / IRI#1.7: this indicator is linked to : (i) the reduction in the incentive dedicated to conventional seeders in order to redeploy the FDA budget; and (ii) the introduction of a new incentive for selected leguminous and forage seeds needed for the transition to CA in the Program Area. IRI#1.8: a new bonus will be introduced as part of the insurance system, enabling a reduction in the insurance premiums for farmers adopting NT and/or CA. IRI#1.9: this indicator measures the evolution of the area covered by the NT/CA M&E and impact measurement platform. IRI#1.10: this indicator will measure the evolution of the area covered by NT/CA practices. Frequency Semi-annually for all, except IRI#1.4, IRI#1.7, IRI#1.8 (once achieved) Data source Digital Platform/SISCA + DDFP/INRA /DF/ONCA/DRA Methodology IRI#1.1: Use of progress reports by DEFR based on the list of technicians trained (appearing on the list of successful candidates, for Data which is provided at the end of the academic year (end of July/beginning of August)). Collection Page 37 The World Bank Transforming Agri-food Systems in Morocco (P181587) IRI#1.2: Use of progress reports by ONCA based on lists of advisers trained by ONCA or other partners IRI#1.3: Use of progress reports by ONCA based on the list of farmers trained semi-annually by ONCA staff (public extension agents) or private extension agents mobilized by the ONCA at local level (training, farmer field schools, etc.). IRI#1.4: Use of progress reports by INRA with evidence confirming that the CNRG is operational (i.e., fully equipped and staffed). IRI#1.5: Use of progress reports by INRA based on evidence on the annual production volume of certified G1 & G2 pre-basic seeds. DLR#1.A / IRI#1.6: Use of progress reports by DDFP and DF, which will be based on regular evaluations of the number of direct Seeders (DS) purchased under the Ministry's budget and the number of DS purchased with FDA support in the Program Area. DLR#1.B / IRI#1.7: Use of evidence on the publication of orders modifying FDA support scheme in the official bulletin (Bulletin Officiel in French): (a) modification needs to include the reduction of the existing incentive for conventional seeders; and (b) the introduction of a new incentive for the use of improved leguminous and forage seeds. IRI#1.8: Use of evidence demonstrating MAMDA has included an additional bonus in the insurance contract for farmers who are insured under MRC (Multi-Climate-Risk Field Crops Program) and have adopted NT/CA practices. IRI#1.9: Use of data provided by INRA, using the Digital NT/CA M&E and impact measurement platform. Use of data provided by INRA, based on the Digital NT/CA M&E and impact measurement platform. INRA is responsible for operationalizing the platform and expand its coverage to 100,000 Ha. The responsibility for deploying the platform will be subsequently transferred to another MAPMDREF entity. IRI#1.10: Use of data collected by the DDFP at local/regional level through the current monitoring system dedicated to the implementation of the National No-Tillage Program (SISCA) or other data collection mechanisms and subsequently the digital NT/CA impact measurement platform once operational (IRI#1.9). IRI#1.1: DEFR IRI#1.2 and IRI#1.3: ONCA IRI#1.4: INRA Responsibility IRI#1.5: INRA/SONACOS for Data IRI#1.6: DDFP/DF/ DAAJ Collection IRI#1.7 and IRI#1.8: DF IRI#1.9: INRA/MAPMDREF IRI#1.10: DDF/ONCA/INRA RA#1: Improved climate resilience and risk management in rainfed agriculture DLI#2. Reform the agricultural insurance system DLR#2.A / IRI#2.1: Program for Climate Resilience and Adaptation (PCRA) to cover uninsurable areas established (DF) IRI#2.2: Modernized agriculture insurance product for insurable areas developed and introduced (DF) IRI#2.3: Parametric index established (DF) DLR#2.B / IRI#2.4: Area covered by the agricultural risk management system (DF) DLR#2.A / IRI#2.1: the PCRA will be established by the signing of an agreement between the GoM and MAMDA detailing how the mechanism will operate, how it will be financed and the conditions under which it will be managed by MAMDA. This PCRA will be dedicated exclusively to uninsurable areas. IRI#2.2: the modernization of the current MRC will be carried out by MAMDA and formalized by the signing of an agreement between the GoM and MAMDA detailing the operation of the new MRC, particularly the new financial conditions (insured capital, premium rate, subsidy rate, etc.) which will be applied in insurable areas. The modernization of Description the current MRC consists, at the minimum, of introducing individual insurance for high-performance farmers and the introduction of a bonus allowing a reduction in the insurance premium for farmers adopting SD and/or CA (IRI#1.8) . IRI#2.3: this involves setting up a parametric index (climate index, NDVI, etc.) to estimate crop losses due to drought under the new PCRA for non-insurable areas. DLR#2.B / IRI#2.4: this indicator measures the areas covered by PCRA and the areas covered by the MRC insurance (in ha) in the Program Area. Frequency Annual for DLR#2.B / IRI#2.4, once achieved for the other indicators. Data source DF/MAMDA DLR 2.A / IRI#2.1: the evidence of achievement will be the signed agreement regulating the PCRA signed between the GoM Methodology for and MAMDA. Data Collection IRI#2.2: use of evidence included in the agreement regulating MRC insurance signed between the GoM and MAMDA Page 38 The World Bank Transforming Agri-food Systems in Morocco (P181587) IRI#2.3: use of evidence on the introduction of parametric index contained in the agreement regulating the PCRA. DLR#2.B / IRI#2.4: use of information based on the list of insurance contracts signed under the MRC and PCRA, provided semi-annually by MAMDA and compiled by the DF. These lists will provide comprehensive information on the number of farmers benefiting from the two systems (PCRA and MRC) in terms of area, type of crop, level of coverage, etc. Responsibility for All indicators: DF Data Collection RA#2: Strengthened Food Safety, Food quality and Nutri on Security DLI#3. Support high-quality and safe food produc on DLR#3.A / IRI#3.1: FDA support for upgrading olive mills increased to at least 20% (DF) IRI#3.2: Inventory of olive mills completed (Interprolive/DDFP/DSS) IRI#3.3: Informa on system for olive value chain opera onal (DSS/DDFP/Interprolive) IRI#3.4: Number of olive mills authorized (Interprolive/DSS) IRI# 3.5: Number of samples taken annually for olive oil quality control (ONSSA) IRI#3.6: Two specifica ons rela ng to the regula ons for organic farming revised (DDFP) DLR#3.B / IRI#3.7: FDA support for conver ng to and maintaining organic farming enhanced (DF/DDFP) IRI#3.8: Virtual Technical Center for the Development of Organic Farming established and opera onal (DDFP) IRI#3.9: Number of technicians trained in organic farming (DEFR) IRI#3.10: Number of Business Plans for Produc ve Alliances prepared (ADA) DLR#3.C / IRI#3.11: Area cer fied under organic farming (DDFP) DLR#3.D / IRI#3.12: Regula ons governing food product quality aligned with interna onal standards (ONSSA) DLR#3.A / IRI#3.1: the aim is to increase the current FDA support for upgrading olive mills (from 10% to at least 20% of investment cost). IRI#3.2: the objec ve is to update the inventory of olive mills. This inventory will be carried out by Interprolive under the specific agreement signed by the Ministry of Agriculture and Interprolive. IRI#3.3: the aim is to elaborate an informa on system for the olive value chain by DSS in collabora on with Interprolive. IRI#3.4: this indicator measures the number of oil mills authorized by ONSSA annually as a result of the support provided under IRI#3.1 and the support and awareness-raising ac ons carried out by Interprolive, under the specific agreement signed between the Ministry of Agriculture and Interprolive. IRI# 3.5: this indicator measures the increase in the number of samples taken annually for olive oil quality control by ONSSA. IRI#3.6: this indicator tracks the realignment of regula ons on organic farming in Morocco with interna onal standards (e.g., the EU framework) via the revision of two regulatory specifica ons. DLR#3.B / IRI#3.7: the objec ve is to introduce a new incen ve for farmers prac cing organic farming, which supports them in maintaining their organic produc on for several years a er conversion. Descrip on IRI#3.8: this indicator tracks the establishment and opera onaliza on of a virtual Technical Center for the Development of Organic Farming, which will strengthen agricultural research in this area, increase knowledge and strengthen ins tu onal and farmers' capaci es. IRI#3.9: this indicator measures the number of technicians trained in organic farming each year in agricultural schools. The following assump ons are used for disaggrega on by gender and age group: (i) female: 32 percent; and (ii) youth: 100 per cent (as all technicians are under 40). IRI#3.10: this indicator measures the number of Business Plans prepared by farmers' organiza ons and buyers, as part of Produc ve Alliances projects, to improve market access for small producers. DLR#3.C / IRI#3.11: this indicator measures the total area that is cer fied as under organic farming in Program Area. DLR#3.D / IRI#3.12: this indicator aims at improving the regulatory framework governing food product quality by aligning domes c food safety standards with interna onal ones. It includes three sub-DLRs, as follows: (a) Decree regula ng quality standards for edible vegetable oils and fats published in the Official Bulle n; (b) Order (Arrêté) related to the decree (DLR#3.D (a)) published; and (c): Order (Arrêté) revising the requirement for the microbiological standards on food products published. Semi-annually for: IRI#3.4, IRI#3.5, IRI#3.9, IRI#3.10, DLR#3.C / IRI#3.11, Frequency Once achieved for: DLR#3.A /IRI#3.1, IRI#3.2; IRI#3.3, IRI#3.6, DLR#3.B /IRI#3.7, IRI#3.8, DLR#3.D / IRI#3.12 Data source DF/DDFP/ADA/DEFR/DSS/Interprolive/ONSSA Methodology DLR#3.A / IRI#3.1: Use of evidence on increased FDA support for upgrading oil mills based on publica on of related order in for Data the Official Bulle n. Page 39 The World Bank Transforming Agri-food Systems in Morocco (P181587) Collec on IRI#3.2: Use of report elaborated by Interprolive on the inventory of olive mills IRI#3.3: Use of report prepared by DSS and Interprolive demonstra ng the informa on system is opera onal. IRI#3.4: Use of informa on compiled by Interprolive. IRI#3.5: Use of evidence contained in progress reports from ONSSA. IRI#3.6: Use of evidence captured by new texts on the updated Moroccan regula ons on organic farming. DLR#3.B / IRI#3.7:Use of evidence contained in the Official Bulle n (once the order introducing a new FDA support for organic farming has been published in the Official Bulle n). IRI#3.8: Use of report prepared by INRA/DDFP demonstra ng the virtual Technical Center is opera onal. IRI#3.9: Use of report prepared by DEFR indica ng the number of technicians and operators trained in organic farming in agricultural schools. IRI#3.10: Use of data collected by DSS based on reports prepared by ADA on PA projects. DLR#3.C / IRI#3.11: Use of data collected by DSS based on the report/assessment prepared by DDFP on the organic farming program DLR#3.D / IRI#3.12: Use of evidence included in Official Bulle n (once decree and orders have been published in the Official Bulle n). DLR#3.A / IRI#3.1: DF. IRI#3.2: Interprolive. IRI#3.3: DSS, DDFP, DSI and Interprolive. IRI#3.4: Interprolive. IRI#3.5: ONSSA Responsibility IRI#3.6: DDFP. for Data DLR#3.B / IRI#3.7: DF / DDFP. Collec on IRI#3.8: DDFP. IRI#3.9: DEFR. IRI#3.10: DSS from ADA. DLR#3.C / IRI#3.11: DDFP/DSS. DLR#3.D / IRI#3.12: ONSSA. RA#2: Strengthened Food Safety, Food quality and Nutrition Security DLI#4. Strengthen food safety at food distribution level IRI#4.1: Platform Rokhas updated with new module for sanitary authorization (MI) DLR#4.A / IRI#4.2: Joint order (Arrêté) requiring food sales outlets to obtain sanitary approval published (MI/MAPMDREF/MSPS) IRI#4.3: Number of BCH staff trained (MI) DLR#4.B / IRI#4.4: Number of Bureau Communal d’Hygiene (BCH) operational (MI) IRI#4.5: Inventory of food sale outlets completed (MI) DLR#4.C / IRI#4.6: Number of food sales outlets authorized at sanitary level (MI) IRI#4.1: this indicator aims to update Rokhas platform by including a new module enabling operators to apply for and obtain sanitary authorizations online. DLR#4.A / IRI#4.2: this indicator concerns a revision of the regulations in force, about sanitary compliance, through the signing of a new joint order by the 3 ministries (Agriculture, Interior and Health) which will enable the introduction of a sanitary authorizations that will become compulsory for all food sales outlets. IRI#4.3: this indicator measures the number of BCH staff trained by MI. These staff will contribute to the Description implementation of the new regulations (DLR#4.A/ IRI#4.2). DLR#4.B / IRI#4.4: this indicator measures the number of Communal Hygiene Offices (BCH) that will be set up at local level to ensure the adoption of the new regulation (DLR#4.A/ IRI#4.2) in the Program Area. IRI#4.5: the aim is to carry out an inventory of food sales outlets by using the information from different sources (commercial and fiscal registers, ONSSA, Rokhas Platform, site visits, etc.). DLR#4.C / IRI#4.6: this indicator measures the number of food sales outlets authorized for sanitary purposes under the new regulation (DLR#4.A / IRI#4.2) in the Program Area. Semi-annually for: IRI#4.3, DLR#4.B / IRI#4.4, DLR#4.C / IRI#4.6 Frequency Once it is achieved for: DLR#4.1, DLR#4.A / IRI#4.2, IRI#4.5 Data source MI/DGCT Page 40 The World Bank Transforming Agri-food Systems in Morocco (P181587) IRI#4.1: Use of report prepared by MI/DGCT with evidence on the integration of the new module into the Rokhas platform (linked to sanitary authorization). DLR#4.A / IRI#4.2: Use of publication of the joint order on sanitary authorizations in the Official Bulletin. Methodology for Data IRI#4.3: Use of information provided by MI/DGCT, based on list of BCH staff trained by MI. Collection DLR#4.B / IRI#4.4: Use of evidence provided by MI/DCGT based on list of BCHs that have been set up and staffed. IRI#4.5: Use of report elaborated by MI/DGCT on the inventory of food sales outlets. DLR#4.C / IRI#4.6: Use of evidence based on lists of food sales outlets authorized at sanitary level (this list could be obtained also from Rokhas platform). Responsibility for DSS compiling information provided by MI/DGCT Data Collection RA#2: Strengthened Food Safety, Food quality and Nutrition Security DLI#5. Enhance awareness and capacity related to nutrition security, One-Health and circularity IRI#5.1: Action Plan for the implementation of the School Feeding Coalition Program elaborated (DSS/Hub) IRI#5.2: Percentage of women reached by awareness campaigns changing practices related to nutrition and diets (DSS/Hub) DLR#5.A / IRI#5.3: Master on Nutrition accredited at IAV Hassen II (IAV) DLR#5.B / IRI#5.4: Master dedicated to OH accredited at IAV Hassan II (IAV) IRI#5.5: Technical and financial studies for the VDPA (‘Valorisation des Déchets Plastiques Agricoles’) recycling platform completed (DSS) DLR#5.C / IRI#5.6: Action plan to reduce food losses in the vegetable value chain adopted by FIFEL interprofession (DSS/FIFEL/FAO) IRI#5.1: DSS (HUB), in collaboration with the MHSP and FAO, will develop an action plan for the implementation of the school feeding coalition program. IRI#5.2: DSS (HUB) will estimate the share of women reached by awareness campaigns organized with the support of FAO (under IPF component) with changed practices related to diets and nutrition. The final target of women reached by campaigns is 300,000. Campaign formats and messaging will be developed with elaborate/extensive consultations and FAO expertise under the IPF component. An impact evaluation (with behavioral studies) will be conducted to measure changes in practices. The final Program target in terms of the percentage of women with changed practices would be around 25%. Description DLR#5.A / IRI#5.3: this indicator tracks the accreditation of a new master’s degree on nutrition at IAV Hassan II. DLR#5.B / IRI#5.4: this indicator tracks the accreditation of a new master's degree dedicated to the OH approach at IAV Hassan II. IRI#5.5: this indicator assesses the delivery of technical and financial studies for the VDPA ( Valorisation des Déchets Plastiques Agricoles) recycling platform under the IPF component. DLR#5.C/ IRI#5.6: this indicator targets the development and adoption of an action plan to reduce food losses in the vegetable value chain by FIFEL interprofession (which is the organization representing fruit and vegetable producers). Semi-annually: IRI#5.2 Frequency Upon achievement: IRI#5.1, IRI#5.3, DLR#5.B / IRI#5.4, IRI#5.5, DLR#5.C / IRI#5.6. Data source DSS/IAV IRI#5.1: Use of report prepared by DSS/HUB, which includes the action plan for the implementation of the school feeding coalition program. IRI#5.2: Use of report prepared by DSS/HUB about women-focused consumer awareness campaigns (through reports from service providers who will organize the campaigns and analyze ensuing behavioral changes). Methodology for Data DLR#5.A / IRI#5.3: See verification protocol (following section) Collection DLR#5.B / IRI#5.4: See verification protocol (following section) IRI#5.5: Use of outputs related to the technical and financial studies for the VDPA platform. DLR#5.C / IRI#5.6: Use of report prepared by FIFEL which includes action plan to reduce food losses for vegetables. IRI#5.1, IRI#5.2: DSS/HUB. Responsibility for DLR#5.A / IRI#5.3 and DLR#5.B / IRI#5.4: IAV. Data Collection IRI#5.5: DSS/HUB under IPF component IDLR#5.C / IRI#5.6: FIFEL Page 41 The World Bank Transforming Agri-food Systems in Morocco (P181587) Crosscutting Indicactor IRI#6: Annual public consultations organized At least one public consultation carried out annually on a subject related to the operation The schedule and detailed agenda of the consultation will be defined in accordance with the Program implementation schedule for each activity and a report will be prepared accordingly with concrete actions to improve Program’s Description implementation. Consultation methods will include focus group discussions, household surveys and interviews, electronic consultations, and advisory/expert groups. Following each consultation, the PMU will create and implement an action plan in response to the collected feedback. The results of this action plan will be subsequently disclosed to the public. Frequency Annual Data source PMU Methodology for Data Annual report from PMU Collection Responsibility for Data PMU Collection Page 42 The World Bank Transforming Agri-food Systems in Morocco (P181587) Verification Protocol Table: Disbursement Linked Indicators RA#1: Improved climate resilience and risk management in rainfed agriculture DLI#1. Support to the transition towards Conservation Agriculture in rainfed production areas DLR#1.A: D=N/T*A means: Disbursement (D) is equal to the number of direct seeders acquired during Program implementation (N), divided by the total target of direct seeders to be acquired under said DLR (T), multiplied by total amount allocated to said DLR (A). Formula DLR#1.B is assessed on a Yes/No basis. DLR#1.C: D=N/T*A means: Disbursement (D) is equal to the area in hectares transitioning to Conservation Agriculture (N), divided by the total target of area to be converted under said DLR (T), multiplied by total amount allocated to said DLR (A). The Program will disburse against the following DLRs:  DLR#1.A: Number of direct seeders (DS) available to farmers in the Program Area (derived by evaluating the number of direct seeders purchased from the ministry's budget and the number of DS financed by the FDA).  DLR#1.B: FDA incentives repurposed to promote adoption of NT/CA practices. The DLR is divided into two sub-DLRs. They will be met, respectively, when: (a) the FDA subsidy for conventional Description seeders will be reduced from 50% to 30%; and (b) a new FDA subsidy for the use of improved seeds for leguminous and fodder has been approved. The changes need to be published in the Official Bulletin for triggering disbursement.  DLR#1.C: Area transitioning towards CA practices, taking into account the areas practicing No- Tillage and/or Conservation Agriculture (with no-tillage, crop rotation, and use of improved cereal and leguminous seeds) in the Program Area as defined in the MOP. Data source/ Agency DDFP, DAAJ, and DF for DLR#1.A, DF for DLR#1.B, and DDFP, ONCA and INRA for DLR#1.C Verification Entity IGA  DLR#1.A: Verified by IGA by reviewing official statements by the commission confirming the reception of direct seeders (DAAJ/DDFP/INRA) and the decisions on subsidy payments for direct seeders by the FDA. Procedure  DLR#1.B: Verified by IGA by reviewing the published orders in the Official Bulletin.  DLR#1.C: Verified by the IGA by examining progress notes developed by the DDFP on the basis of data transmitted by the DRA/ONCA through SISCA or other means and information produced by the digital platform (see IRI#1.9) DLI#2. Reform the agricultural insurance system DLR#2.A is assessed on a yes/no basis. Formula DLR#2.B: D=N/T*A. The fomula means: Disbursement (D) is equal to the area (in hectares) covered by the reformed agricultural risk management system (N), divided by the total target of area to be issued under said DLR (T), multiplied by total amount allocated to said DLR#2.B. DLR #2.A will disburse against the establishment of the PCRA based on the signature of an agreement between the GoM and MAMDA detailing PCRA operational modalities (i.e., related to how the mechanism will operate, how it will be financed and the conditions under which it will be managed by MAMDA). The PCRA will be dedicated exclusively to uninsurable areas in the Program Area. Description The allocation under DLR#2.B will be disbursed based on the area covered by the reformed agricultural risk management system. The areas (in ha) that will be considered include: (i) the area covered by the PCRA; and (ii) the area covered by the insurance against climate hazards, in the Program Area as defined in the MOP. Data source/ Agency DF Verification Entity IGA Procedure Verified by IGA : Page 43 The World Bank Transforming Agri-food Systems in Morocco (P181587) For RLD#2.A: by examining the agreement between the GoM and MAMDA for the creation of PCRA, and the verification report will be based on a summary note of this agreement explaining how the mechanism will operate, how it will be financed and how it will be managed by MAMDA. For RLD#2.B: by reviewing DF progress reports, summarizing data on insurance subscriptions provided by MAMDA database and internal reports. RA#2: Strengthened Food Safety, Food Quality and Nutrition Security DLI#3. Support high quality and safe food production DLR#3.A, DLR#3.B and DLR#3.D are assessed on a Yes/No basis Formula DLR#3.C: D=N/T*A means: Disbursement (D) is equal to the area certfied under organic agriculture each year (N), divided by the total target area to be certified under organic agriculture under the said DLR (T) multiplied by total amount allocated to said DLR (A). The Program will disburse against the following DLRs:  DLR#3.A: FDA support for upgrading and more efficient olive mills increased from 10% to at least 20%.  DLR#3.B: FDA support to organic farming enhanced (DF), with the creation of a new area-based subsidy to incentivize farmers to maintain organic production after conversion to organic farming. The evidence for disbursement will be the order (arrêté published in the Official Bulletin).  DLR#3.C: Area certified under organic farming each year in the Program Area as defined in the Description MOP.  DLR#3.D: Regulations governing food product quality aligned with international standards in the Program Area. This indicator aims at improving the regulatory framework governing the quality of food products by aligning national food quality standards with international ones. It includes three sub-DLRs, as follows: (a) Decree regulating quality standards for edible vegetable oils and fats published in the Official Bulletin; (b) Order (Arrêté) related to the decree (DLR#3.D (a)) published in the Official Bulletin; and (c): Order (Arrêté) revising the requirement for the microbiological standards on food products, published in the Official Bulletin. Data source/ Agency DF for DLR#3.A and DLR#3.B, DDFP for DLR#3.C, ONSSA and DF for DLR#3.D Verification Entity IGA  DLR#3.A: Verified by IGA by reviewing the published order in the Official Bulletin modifying the FDA incentive.  DLR#3.B: Verified by IGA by reviewing the published order in the Official Bulletin introducing the new FDA incentive. Procedure  DLR#3.C: Verified by IGA by reviewing DDFP, based on information provided by certifying entities for organic products. The DLR will be disbursed against the number of hectares certified under organic agriculture each year in the Program Area.  DLR#3.D: Verified by IGA by reviewing the decree and orders published in the Official Bulletin. DLI#4. Strengthen food safety at food distribution level DLR#4.A is assessed on a Yes/No basis DLR#4.B: D=N/T*A means: Disbursement (D) is equal to the number of operational Bureau Communal d’Hygiene (BCH) (N), divided by the target of operational BCH (T), multiplied by total amount allocated to said Formula DLR (A). DLR#4.C: D=N/T*A means: Disbursement (D) is equal to the number of food sales outlets (restaurants, bars, etc.) authorized (N), divided by the total target of food sales outlets to be authorized under said DLR (T), multiplied by total amount allocated to said DLR (A). The Program will disburse against the following DLRs: Description  DLR#4.A: Joint order (Arrêté) requiring food sales outlets to obtain sanitary approval published in the Official Bulletin (MI/MAPMDREF/MSPS). Page 44 The World Bank Transforming Agri-food Systems in Morocco (P181587)  DLR#4.B: Number of Bureau Communal d’Hygiene (BCH) operational (MI), equipped and staffed with adequate human resources, in the Program Area as defined in the MOP.  DLR#4.C: Number of food sales outlets authorized at sanitary level (MI), adding two different categories in French (both summarized under the term “authorized” in English): (i) the ones “agréés”; and (ii) the ones “autorisés”, in Program Area as defined in the MOP. Data source/ Agency MI for all DLRs Verification Entity IGAT  DLR#4.A: verified by IGAT based on the publication of the order in the official bulletin. Procedure  DLR#4.B and DLR#4.C: verified by IGAT by reviewing MI progress reports. DLI#5. Enhance awareness and capacity related to nutrition security, One-Health and circularity Formula DLR#5.A , DLR#5.B and DLR#5.C are assessed on a Yes/No basis The Program will disburse against the following DLRs:  DLR#5.A: verification will be based on examination of achievement of two sub-DLRs: - DLR #5.A(a) proof of submission of the accreditation dossier for the new Master's degree in nutrition to the Department of Higher Education or any other competent authority; - DLR #5.A(b) accreditation for the Master's degree in nutrition obtained. Description  DLR#5.B: verification will be based on examination of achievement of two sub-DLRs: - DLR #5.B(a) proof of submission of the accreditation dossier for the new Master's degree dedicated to OH to the Department of Higher Education or any other competent authority; - DLR #5.B(b) accreditation document for the Master's degree dedicated to OH obtained.  DLR#5.C: Action plan to reduce food losses in the vegetable value chain adopted by FIFEL interprofession, in the Program Area as defined in the MOP. Data source/ Agency IAV for DLR#5.A and DLR#5.B, DDFP/FIFEL for DLR#5.C Verification Entity IGA  DLR#5.A and DLR#5.B: Verified by IGA by reviewing proof of submission of the accreditation dossier Procedure and proof of accreditation of the masters by the competent authorities.  DLR#5.C: Verified by IGA by reviewing DDFP/FIFEL progress report. Page 45 The World Bank Transforming Agri-food Systems in Morocco (P181587) ANNEX 2. DETAILED EXPENDITURE FRAMEWORK, ADDITIONAL INFORMATION ON BENEFICIARIES AND SEQUENCING Table 4: Detailed expenditure framework Expenditure framework Implementing Result Areas (RA) Budget categories (in US$ million) Total entity 2025 2026 2027 2028 2029 Value Chain Development (mission support & DDFP investments in animal and plant production 20.9 20.9 20.9 20.9 20.9 104.5 sectors) Teaching, Training and Research (Mission DEFR 3.0 3.0 3.0 3.0 3.0 15.1 support) RA#1 (Improved climate resilience Teaching, Training and Research (Upgrading of INRA 2.8 2.8 2.8 2.8 2.8 14.0 and risk operational research centers. R&D projects) management in ONCA Agricultural Advisory Services 5.8 5.8 5.8 5.8 5.8 29.1 rainfed agriculture) Subtotal DF 60.6 71.7 81.6 94.1 109.3 417.2 - of which support for agriculture insurance 40.0 47.1 54.3 61.4 68.6 271.4 DF - of which FDA support for direct seeders 0.4 0.4 0.4 0.4 0.4 2.0 - of which FDA support for improved seeds 20.2 24.2 26.9 32.2 40.3 143.8 Subtotal RA#1 93.1 104.3 114.1 126.6 141.8 579.9 Value Chain Development (Aggregation and ADA 0.5 0.5 0.5 0.5 0.5 2.5 agricultural investment projects) DDDF Development of Productive Alliances 0.0 2.0 2.0 3.0 0.0 7.0 Teaching, training and research (supervision and IAV 0.2 0.2 0.2 0.2 0.2 0.8 training. R&D projects) RA#2 Preservation and animal and plant and food (Strengthened ONSSA safety (control of food products & protection of 16.3 16.3 16.3 16.3 16.3 81.4 food safety. food animal and plant resources quality and Subtotal DF 4.4 5.1 6.0 7.0 8.3 30.7 nutrition DF - of which FDA support for olive mills 0.3 0.3 0.6 0.6 0.6 2.4 security) - of which FDA flat-rate support for organic 4.1 4.7 5.4 6.4 7.7 28.3 agriculture Investments for constructions and equipment of MI 20.0 20.0 20.0 20.0 20.0 100.0 BCH Subtotal RA#2 41.3 44.0 44.9 47.0 45.2 222.4 TOTAL (RA#1 + RA#2) 134.4 148.3 159.0 173.6 187.0 802.3 Page 46 The World Bank Transforming Agri-food Systems in Morocco (P181587) Detailed estimate of beneficiaries and sequencing of activities and results 87. The table below details the distribution of beneficiaries by category and result. The total of direct beneficiaries is based on the following assumptions to avoid double counting of beneficiaries targeted by multiple interventions: (i) 100% of the farmers benefitting from the repurposed FDA incentives (IRI#1.7) receive advisory services (IRI#1.3), (which implies the concerned 90,000 farmers are counted only once); (ii) 50% of the beneficiaries of the reformed agricultural risk management system (IRI#2.4) are practicing no-till and/or conservation agriculture; (iii) 50% of the new areas under NT/CA are included in the reformed insurance system; and (iv) agro-industries and food sales outlets employ 5 staff on average (IRI#4.6). The risk of double-counting for the remaining interventions has been assessed as low and estimates are therefore based on the targets of the corresponding indicators as specified by the RF. Table 5: Detailed estimate of Program beneficiaries: Number of Number of Number of agri- Number of people Area consumers Number of farmers food SME or food benefitting from DLI and DLR benefitting from benefitted sales oulets increased food benefitting from professionnals (in ha) awareness trained the Program benefitted safety campaigns Result Area 1: Improved climate resilience and risk management in rainfed agriculture IRI#1.1: Number of technicians trained in NT/CA (DEFR) 1,650 IRI#1.2 : Number of agricultural advisers trained on NT/CA (ONCA) 100 IRI#1.3 : Number of farmers benefitting from agricultural advisory on NT/CA (ONCA) 90,000 PDO#1 /DLR#1.C : Area transitioning towards CA practices (DDFP) 360,000 Farmers benefitted by the repurposed FDA incentives to promote adoption of NT/ CA 90,000 related to IRI#1.7 (DF) DLR#2.B /IRI#2.4: Area covered by reformed agricultural risk management system 1,200,000 (DF) Farmers benefitted by reformed agricultural risk management system related to 54,545 IRI#2.4 (DF) Result Area 2: Strengthened food safety, food quality and nutrition security People benefitting from modernized olive mills related to IRI#3.4 (DF) 125,000 Farmers benefitted by the enhanced FDA support for organic farming related to IRI#3.6 (DF/DDFP) 580 IRI#3.9: Number of technicians trained in OF (DEFR) 1,000 Number of farmers benefitted by the Business Plans prepared for Productive Alliance related to IRI#3.9 (ADA) 600 Area covered by the Business Plans prepared for Productive Alliance related to IRI#3.9 (ADA) 1,200 DLR#3.C / IRI#3.11: Area certified under Organic Farming (DDFP) 11,675 Number of consumers benefitted by the authorization Food sales outlets at sanitary 600,000 level related to DLR#4.C IRI#4.3: Number of BCH staff trained (MI) 820 DLR#4.C / IRI#4.6: Number of food sales outlets authorized at sanitary level (MI) 1,200 Number of professional from food sales outlets trained related to DLR#4.C (MI) 8,000 Number of consumers targeted by the awareness campaigns related to IRI#5.2 (DSS/Hub) 500,000 Total beneficaries (incl. those benefitting 235,725 1,572,875 1,200 725,000 500,000 11,570 from multiple interventions) Total direct beneficiaries 118,453 1,392,875 1,200 725,000 500,000 11,570 GRAND TOTAL DIRECT BENEFICIARIES 1,361,023 Page 47 The World Bank Transforming Agri-food Systems in Morocco (P181587) Table 6: Sequencing of activities and expected results (IRIs and DLRs) Cumulative annual targets DLI & DLR Unit Baseline CY25 CY26 CY27 CY28 CY29 Result Area 1: Improved climate resilience and risk management in rainfed agriculture IRI#1.1: Number of technicians trained in NT/CA (DEFR) Nb 0 330 660 990 1,320 1,650 IRI#1.2 : Number of agricultural advisers trained on NT/CA (ONCA) Nb 40 50 60 70 80 100 IRI#1.3 : Number of farmers benefitting from agricultural advisory on NT/CA (ONCA) Nb 10,000 28,000 46,000 64,000 82,000 100,000 DLI#1. Support IRI#1.4: CNRG operational (INRA) Y/N N N N Y Y Y to the transition towards IRI#1.5: Production of certified G1 & G2 pre-basic seeds increased (INRA) qt (in t) 600 800 1,000 1,200 1,400 1,600 Conservation Agriculture in DLR#1.A/ IRI#1.6: Number of direct seeders available to farmers (DDFP) Nb 800 1,000 1,200 1,400 1,600 1,800 rainfed production DLR#1.B / IRI#1.7: FDA incentives repurposed to promote adoption of NT/CA practices (DF) Y/N N Y (1) Y (1) Y (2) Y (2) Y (2) areas IRI#1.8: Insurance premium reduced for farmers transitioning towards CA (DF) Y/N N Y Y Y Y Y IRI#1.9: Area covered by the NT/CA M&E and impact measurement platform (INRA) Ha 20,000 30,000 60,000 100,000 100,000 100,000 PDO#1 /DLR#1.C : Area transitioning towards CA practices (DDFP) Ha 120,000 200,000 270,000 340,000 410,000 480,000 DLR#2.A / IRI#2.1: Program for Climatic Resilience and Adaptation (PCRA) to cover uninsurable areas Y/N N Y Y Y Y Y established (DF) DLI#2. Reform the agricultural IRI#2.2: Modernized agriculture insurance product for insurable areas developed and introduced (DF) Y/N N Y Y Y Y Y insurance system IRI#2.3: Parametric index established (DF) Y/N N N Y Y Y Y PDO#2/ DLR#2.B /IRI#2.4: Area covered by reformed agricultural risk management system (DF) Ha 0 700,000 825,000 950,000 1,075,000 1,200,000 Result Area 2: Strengthened food safety, food quality and nutrition security DLR#3.A /IRI#3.1: FDA support for upgrading olive mills increased from 10% to, at least, 20% (DF) Y/N N Y Y Y Y Y IRI#3.2: Inventory of olive mills completed (Interprolive/DDFP/DSS) Y/N N N Y Y Y Y IRI#3.3: Information system for olive value chain operational (Interprolive/DDFP/DSS) Y/N N N N Y Y Y IRI#3.4: Number of olive mills authorized (Interprolive/DDFP/DSS) Nb 360 460 560 660 760 860 IRI# 3.5: Number of samples taken annually for olive oil quality control (ONSSA) Nb 400 800 1,200 1,600 2,000 2,400 DLI#3. Support high-quality and IRI#3.6: Revision of two specifications relating to the regulations for organic farming DDFP) Y/N N N Y Y Y Y safe food production DLR# 3.B / IRI#3.7: FDA support for converting to and maintaining organic farming enhanced (DF/DDFP) Y/N N N Y Y Y Y IRI#3.8: Virtual Technical Center for the Development of Organic Farming operational (INRA) Y/N N N Y Y Y Y IRI#3.9: Number of technicians trained in OF (DEFR) Nb 0 200 400 600 800 1000 IRI#10: Number of Business Plans for PA prepared (ADA) Nb 10 10 30 30 30 30 DLR#3.C / IRI#3.11: Area certified under Organic Farming (DDFP) Ha 13,325 13,325 15,500 17,500 21,000 25,000 DLR#3.D / IRI#3.12: Regulations governing food product quality aligned with international standards Nb 0 0 0 3 3 3 (ONSSA) IRI#4.1: Platform Rokhas updated with new module for sanitary authorization (MI) Y/N N Y Y Y Y Y DLR#4.A/ IRI#4.2: Joint order requiring food sales outlets to obtain sanitary approval published Y/N N Y Y Y Y Y DLI#4. (MI/MAPMDREF/MSPS) Strengthen food IRI#4.3: Number of BCH staff trained (MI) Nb 60 200 380 560 720 880 safety at food distribution DLR#4.B/ IRI#4.4: Number of Bureau Communal d’Hygiene (BCH) operational (MI) Nb 270 290 310 330 350 370 level IRI#4.5: Inventory of food sale outlets completed (MI) Y/N N Y Y Y Y Y DLR#4.C / IRI#4.6: Number of food sales outlets authorized at sanitary level (MI) Nb 0 200 450 650 900 1,200 IRI#5.1: Action Plan for the implementation of the School Meals Coalition elaborated (DSS/Hub) Y/N N N Y Y Y Y IRI#5.2 : Percentage of women reached by awareness campaigns changing practices related to nutrition and % 0 0 0 10 15 25 DLI#5. Enhance diets (DSS/FAO) awareness and capacity related DLR#5.A/ IRI#5.3: Master on Nutrition accredited at IAV Hassan II (IAV) Y/N N N N Y Y Y to nutrition DLR#5.B/ IRI#5.4: Master dedicated to OH accredited at IAV Hassan II (IAV) Y/N N N N Y Y Y security, One- Health and IRI#5.5: Technical and financial studies for the VDPA (‘Valorisation des Déchets Plastiques Agricoles’) Y/N N Y Y Y Y Y circularity recycling platform completed (DSS/FAO) DLR#5.C/ IRI#5.6: Action plan to reduce food losses in the vegetable value chain adopted by FIFEL Y/N N N Y Y Y Y interprofessions (DDFP/FIFEL/FAO) Cross-Cutting IRI#6: One public consultation per year carried out Y/N N Y Y Y Y Y Page 48