Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD4838 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT PAPER ON A PROPOSED ADDITIONAL CREDIT IN THE AMOUNT OF EUR 30.8 MILLION (US$30.0 MILLION EQUIVALENT) TO THE REPUBLIC OF MALI FOR THE MALI DRYLANDS DEVELOPMENT PROJECT OCTOBER 27, 2022 Agriculture and Food Global Practice Western and Central Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective September 30, 2022) Currency Unit = FCFA 670 FCFA = US$ 1 US$1.00 = Euro 0.86 FISCAL YEAR January 1 - December 31 Regional Vice President: Ousmane Diagana Country Director: Clara Ana Coutinho De Sousa Regional Director: Simeon Kacou Ehui Practice Manager: Chakib Jenane Task Team Leaders: Soulemane Fofana, Kalilou Sylla ABBREVIATIONS AND ACRONYMS AF Additional Financing AM Accountability Mechanism APSU Agricultural Policy Support Unit ATI Land and Irrigation Management Agency (Agence d’Aménagement des Terres et de l’Eau d’irrigation) CERC Contingent Emergency Response Component DCT Direct Cash Transfer ECOWAS Economic Community of West African States EIRR Economic Internal Rate of Return ENPV Economic Net Present Value ESMF Environmental and Social Management Framework FAO Food and Agriculture Organization FHH Female-Headed Household FM Financial Management GBV Gender- Based Violence GHG Green House Gas GoM Government of Mali GRS Grievance Redress Service IDA International Development Association IFR Interim Financial Report IDPs Internally Displaced Persons IPC Integrated Food Security Phase Classification (Cadre Harmonisé) IPF Investment Project Financing M&E Monitoring and Evaluation MEF Ministry of Economy and Finance MoA Ministry of Agriculture MoU Memorandum of Understanding MTR Mid-Term Review NGO Non-Governmental Organization NPV Net Present Value PAD Project Appraisal Document PCT Productive Cash Transfer PCU Project Coordination Unit PDAZAM Mali Drylands Development Project (Projet de Développement de la Productivité et de la Diversification Agricole dans les Zones Arides du Mali) PDO Project Development Objective PMP Pest Management Plan PPSD Project Procurement Strategy for Development PSC Project Steering Committee RPF Resettlement Policy Framework RSU Register Social Unifié SEA/SH Sexual Exploitation and Abuse/Sexual Harassment SMP Security Management Plan SORT Systematic Operations Risk-rating Tool STEP Systematic Tracking of Exchanges in Procurement UNICEF United Nations Children’s Fund UTGFS Safety Nets Technical Management Unit (Unité Technique de Gestion des Filets Sociaux) WFP World Food Programme Mali Mali Drylands Development Project Additional Financing (P177323) TABLE OF CONTENTS I. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING ........................................ 7 II. DESCRIPTION OF ADDITIONAL FINANCING ..................................................................... 11 III. KEY RISKS ....................................................................................................................... 12 IV. APPRAISAL SUMMARY ................................................................................................... 14 V. WORLD BANK GRIEVANCE REDRESS ............................................................................... 18 VI. SUMMARY TABLE OF CHANGES ...................................................................................... 19 VII. DETAILED CHANGE(S) ..................................................................................................... 19 VIII. RESULTS FRAMEWORK AND MONITORING .................................................................... 27 ANNEX 1: MAP ...................................................................................................................... 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) BASIC INFORMATION – PARENT (Mali Drylands Development Project - P164052) Country Product Line Team Leader(s) Mali IBRD/IDA Soulemane Fofana Project ID Financing Instrument Resp CC Req CC Practice Area (Lead) P164052 Investment Project SAWA4 AWCW3 (278) Agriculture and Food Financing (10130) Implementing Agency: Ministry of Agriculture ADD_FIN_TBL1 Is this a regionally tagged project? No Bank/IFC Collaboration No Expected Original Environmental Approval Date Closing Date Guarantee Current EA Category Assessment Category Expiration Date 05-Jul-2018 30-Sep-2023 Partial Assessment (B) Partial Assessment (B) Financing & Implementation Modalities Parent [ ] Multiphase Programmatic Approach [MPA] [✓] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [✓] Fragile State(s) [ ] Performance-Based Conditions (PBCs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a Non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made disaster [ ] Alternate Procurement Arrangements (APA) [ ] Hands-on Expanded Implementation Support (HEIS) Page 1 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) Development Objective(s) To improve agricultural productivity and strengthen resilience of rural households living in the targeted dryland areas Ratings (from Parent ISR) RATING_DRAFT_Y ES Implementation 05-Apr-2020 05-Oct-2020 28-Mar-2021 23-Sep-2021 28-Mar-2022 Progress towards achievement of MU MU MS MS MS PDO Overall Implementation MU MU MS MS S Progress (IP) Overall Safeguards Rating MS MS MS MS MS Overall Risk S S S S S Financial Management MS MS MS MS MS Project Management MU MS MS MS S Procurement MS MS MS MS MS Monitoring and Evaluation MS MS MS MS S BASIC INFORMATION – ADDITIONAL FINANCING (Additional Financing-Mali Drylands Development Project - P177323) ADDFIN_TABLE Urgent Need or Capacity Project ID Project Name Additional Financing Type Constraints P177323 Additional Financing-Mali Cost Overrun/Financing Gap Yes Drylands Development Project Page 2 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) Financing instrument Product line Approval Date Investment Project IBRD/IDA 09-Nov-2022 Financing Projected Date of Full Bank/IFC Collaboration Disbursement 30-Apr-2026 No Is this a regionally tagged project? No Financing & Implementation Modalities Child [ ] Series of Projects (SOP) [✓] Fragile State(s) [ ] Performance-Based Conditions (PBCs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a Non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made disaster [ ] Alternate Procurement Arrangements (APA) [ ] Hands-on Expanded Implementation Support (HEIS) [✓] Contingent Emergency Response Component (CERC) Disbursement Summary (from Parent ISR) Net Source of Funds Total Disbursed Remaining Balance Disbursed Commitments IBRD % IDA 60.00 26.52 27.33 49 % Grants % PROJECT FINANCING DATA – ADDITIONAL FINANCING (Additional Financing-Mali Drylands Development Project - P177323) PROJECT FINANCING DATA (US$, Millions) SUMMARY-NewFin1 Page 3 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) SUMMARY (Total Financing) Proposed Additional Total Proposed Current Financing Financing Financing Total Project Cost 64.50 30.00 94.50 Total Financing 64.50 30.00 94.50 of which IBRD/IDA 60.00 30.00 90.00 Financing Gap 0.00 0.00 0.00 DETAILS - Additional Financing NewFinEnh1 World Bank Group Financing International Development Association (IDA) 30.00 IDA Credit 30.00 IDA Resources (in US$, Millions) Credit Guarantee Grant Amount SML Amount Total Amount Amount Amount Mali 30.00 0.00 0.00 0.00 30.00 National Performance-Based 30.00 0.00 0.00 0.00 30.00 Allocations (PBA) Total 30.00 0.00 0.00 0.00 30.00 COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? [ ] Yes [ ✔ ] No Does the project require any other Policy waiver(s)? [ ] Yes [ ✔ ] No Page 4 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) INSTITUTIONAL DATA Practice Area (Lead) Agriculture and Food Contributing Practice Areas Social Protection & Jobs Climate Change and Disaster Screening This operation has been screened for short and long-term climate change and disaster risks PROJECT TEAM Bank Staff Name Role Specialization Unit Team Leader (ADM Soulemane Fofana Senior Agriculture Economist SAWA4 Responsible) Kalilou Sylla Team Leader Social Protection HAWS2 Procurement Specialist (ADM Mamadou Sangare Procurement EAWRU Responsible) Boubacar Diallo Procurement Specialist Procurement EAWRU Financial Management Sr. Financial Management Tahirou Kalam EAWG1 Specialist (ADM Responsible) Specialist Financial Management Financial Management Ndri Marina Assoumou EAWG1 Specialist Specialist Mahamadou Ahmadou Social Specialist (ADM Social Development SAWS4 Maiga Responsible) Environmental Specialist (ADM Tolidji Blaise Donou Environment SAWE1 Responsible) Abdrahamane Coulibaly Team Member Senior Operations Officer AWCW3 Adama Diop Team Member Finance Officer WFACS Ademola Braimoh Team Member Senior Ag. Economist SSAA2 Aissata Diop Diallo Procurement Team GCSS2 Amadou Ba Team Member Finance Analyst WFACS Amadou Ba Team Member Sr. Ag. Economist SSAA1 Page 5 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) Angele Compaore Ouattara Procurement Team Program Assistant AWCW3 Assetou Doukara Team Member Program Assistant AWCW3 Benedicte Leroy De La Team Member Economist HSASP Briere Eliakim Kakpo Team Member Economist EAWM1 Isabella Micali Drossos Counsel Senior Counsel LEGAM Kofi Nouve Program Manager Program Manager AWCW3 Mariame Bamba Team Member Program Analyst SAWA4 Moussa Fode Sidibe Team Member Program Assistant AWCW3 Nikolai Alexei Sviedrys Procurement Team Procurement EAWRU Wittich Pierre Xavier Bonneau Team Member Program Leader IAWDR Rhoda Rubaiza Team Member Agriculture SAWA4 Yaye Ngouye Ndao Team Member Senior Country Officer AWCML Extended Team Name Title Organization Location Page 6 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) I. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING A. Introduction 1. This Project Paper seeks the approval of the Executive Directors to provide an IDA credit in the amount of EUR 30.8 million (US$30.0 million equivalent) as additional financing (AF) to the Mali Drylands Development Project (P164052). The proposed AF will be specifically used to: (i) cover a US$12.5 million financing gap resulting from diversion of resources, initially committed to specific project activities, towards an emergency food crisis response in the country in 2020, through the project’s Contingent Emergency Response Component (CERC); and (ii) cover emerging cost overruns under specific project activities (especially those related to construction of climate-resilient infrastructure) in the amount of US$17.5 million, arising from insecurity, and inflation – partly due to the war in Ukraine. This AF is timely as it would contribute to ongoing efforts to address the worsening food security situation in the country, build resilience and support people’s livelihood. More importantly these additional resources will increase the number of beneficiary households by more than 40,000 to 193,000 households and help in alleviating food insecurity for these beneficiaries. In keeping with the original project design and given that women farmers play a dominant role in subsistence agriculture and in the sale of processed foods in rural and urban markets, female-headed households (FHH) and women farmers will be targeted to ensure benefit flow to women. 2. Mali is among the poorest countries in the world, ranking 184 out of 189 on the 2022 Human Development Index. Prior to the pandemic, Mali experienced relatively strong economic performance with Gross Domestic Product (GDP) growth averaging 5.7 percent over 2014-2019 (2.6 percent per capita). However, more than 40 percent of the population live in poverty – 90 percent of them in rural areas in the south of the country, which concentrates most of the population and economic activity. Whilst the young age structure of the population presents a unique opportunity to secure the demographic dividend, in the context of limited security and widespread underemployment, it can have the opposite effect. Political tensions and insecurity have increased since 2012 in the north and central regions, leading to surge of internally displaced people. This has come at a high cost to public finances and resources for delivering public services. Violent conflicts and gaps in service provision are mutually reinforcing: if Mali’s violent conflicts partly stem from a loss of public confidence in state institutions, the conflicts themselves entrench a vicious cycle where the costs of conflict further hamper the state’s ability to finance itself and deliver services. 3. Mali entered a recession in 2020 but the economic recovery in 2021 was weak due to insecurity and political instability, while poverty continued to increase. Real GDP contracted by 1.2 percent in 2020 due to the COVID-19 pandemic, the August 2020 unconstitutional regime change, and a mediocre agricultural campaign. The expected recovery in 2021 was cut short by another military coup in May 2021, the expansion of violence to the Center, and the continued knock-on effects of the 2020 agricultural campaign. Real GDP grew by 3.1 percent in 2021 which was just above the population growth rate estimated at 3 percent. As a result, per capita GDP stagnated, and the national poverty rate remained at 44.4 percent with an additional 50,000 people in extreme poverty. 4. Agriculture plays a dominant role in Mali’s economy. Improvement of this sector is key to eliminating poverty and boosting shared prosperity in the country. The sector is a source of livelihood for 70 percent of the country’s workforce, a source of most of the country’s food needs and the main source of economic linkages both in urban and rural areas. The sector’s overall growth, however, Page 7 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) continues to be suboptimal and volatile. Growth is lower in the dryland areas, straddling the north and central parts of the country. Agriculture is characterized by low productivity, exacerbated by the effect of climate change resulting in more frequent droughts and pervasive land degradation1 that is worsened by climate change. As a result, livelihoods in many parts of the country are persistently vulnerable to various shocks. This includes food insecurity, resulting in the need for emergency aid and support to people to strengthen their resilience. 5. Compounding this vulnerability is the deteriorating security situation, particularly in the Ménaka and Mopti regions, leading to substantial population displacement. Most recent statistics from the World Food Program (WFP) indicate that, by July 2022, over 396,000 people were internally displaced. Many more have lost resources essential for survival (particularly food stocks) to combatants; thus, exposing them to pervasive food insecurity. Most significantly, the insecurity also impedes food production. 6. Furthermore, the lingering impacts of COVID-19 on food production and supply chains, together with the recent increases in fuel and fertilizer prices, driven in large part by the war in Ukraine, have further aggravated the food security situation in the country. The price of fertilizer increased by 50 percent in 2022. Farmers had to reduce the amount of fertilizer used during the cropping season. This is particularly a problem for soils noted for very low inherent fertility. As a result, this year’s agricultural output is expected to be much lower. This, combined with the increase in the cost of transportation, triggered by rising fuel prices, is expected to increase the market price of food.2 Compounding these challenges to food security, is the overall contraction of Mali’s economy prompted by the sanctions imposed by the West African Economic and Monetary Union (WAEMU) and the Economic Community of West African States (ECOWAS). Although the sanctions have been recently lifted, their effect has been to restrict the amount of food that households can obtain through international trade. 7. Consequently, it was projected that over 1.84 million people (8 percent of the population) would face Integrated Phase Classification (IPC3+) crisis or emergency food insecurity during the farming season, according to Cadre Harmonisé data. The WFP hunger map also indicates that the prevalence of insufficient food consumption in the country is extremely high. It is estimated that 12.6 million people of 19.1 million (66 percent of the population) will be under-nourished. Even more alarming, at least 26.9 percent of children under age 5 are chronically malnourished of which 9 percent are acutely so. 8. Relatedly, inflationary pressures as a result of COVID-19, insecurity and the war in Ukraine now dictate that most planned activities under the project cannot be satisfactorily accomplished. This is more so the case for construction activities, where, as seen in Table 1 below, unit prices of key inputs have spiked over the intervening period. 9. In view of the dire situation, the Government has made urgent appeals to a variety of donors – including the World Bank. The proposed AF to the Mali Drylands Development Project would contribute to responding to the growing food security crisis in the country. The support aligns with the World Bank’s broader response to the food insecurity crisis as a result of the war in Ukraine. 1For example, soil erosion causes an annual loss of 6 percent of GDP while deforestation causes a 5.3 percent GDP loss (see https://documents1.worldbank.org/curated/en/101971468282246575/pdf/699720ESW0P1000inal0Mali0SLM20Study.pdf). 2 Prices of cereals, livestock and other key commodities are more than 40 percent above the five-year average. Page 8 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) Table 1: Changes in prices of key construction inputs Input Cost (FCFA) % increase Appraisal Current Cement 95,000 140,000 47.4 Reinforced steel bars 24,870 35,360 44.4 Sand 7,000 18,000 157.1 Construction aggregates 9,000 13,000 44.4 Labor 2,000 4,500 125.0 10. Original Project: The original Project was approved by the Board on July 5, 2018, for a total of US$60 million, and its PDO was “to improve agricultural productivity and strengthen resilience of rural households living in the targeted dryland areas”. On October 27, 2021, a restructuring of the project was approved to reallocate resources to the CERC component in support of government interventions, providing emergency food assistance to vulnerable households. At this restructuring, the development objective was modified and restated as: “to improve agricultural productivity and strengthen resilience of rural households living in the targeted dryland areas and to improve the Recipient’s capacity to respond effectively to an Eligible Crisis or Emergency”. The project has three components, and these, together with their costs after the October 2021 restructuring, are as summarized below: (i) Improving the productivity and resilience of beneficiary populations (US$29 million): This component seeks to: (a) enhance household resilience by providing combined interventions to poor and vulnerable households to increase food availability, mitigate recurrent seasonal shocks, and provide them with opportunities to improve their living conditions; and (b) increase the agricultural productivity of farmers and groups of farmers. Specifically, support is provided to: (i) expand the social registry’s capacity to strengthen social protection in the country; (ii) provide cash and productive transfers to poor and vulnerable households; and (iii) promote emerging high-value crops value chains. (ii) Productive Infrastructure at the Community Level (US$14.5 million): This component supports investments in climate-resilient community infrastructure that improve the environmental, physical, and socioeconomic context for dryland agriculture, and create synergies with activities to boost agricultural productivity and strengthen resilience under Component 1. Project support is provided for: (i) selection and preparation of investments; (ii) productive and climate-resilient infrastructure investments; and (iii) commercialization infrastructure investments focusing on improving market access. (iii) Institutional Support, Crisis Management and Project Coordination (US$21.0 million): This component seeks to improve the skills of local- and national-level policy makers involved in agricultural policy and planning formulation, and to provide support for agricultural policy development. It finances: (i) strengthening the capacity for evidence-based agricultural policy analysis; (ii) project coordination; and (iii) a CERC intended to support emergency responses and recovery in the event of natural disasters or crises. 11. Project performance: Project performance is rated Moderately Satisfactory (MS) with respect to progress towards attainment of the development objective and Satisfactory (S) for implementation progress. The less than satisfactory rating for progress towards achievement of the development objective is mainly related to the country’s political and economic situation which led to suspension of disbursements by the World Bank three times (from August 25 to November 24, 2020; from May 25 to Page 9 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) September 7, 2021; and from March 15 to July 17, 2022); persistent insecurity in the targeted areas, which not only undermines implementation but also precludes implementation support and monitoring by the Bank; increased prices of key inputs relative to appraised costs; and earlier COVID-19 restrictions on staff mobility. Audits for the year ending December 31, 2021, did not indicate any internal control or accountability issues. Financial Management and Procurement are rated MS and so is overall Social and Environmental Safeguards performance. All Legal Covenants have been complied with. 12. Project achievements: The total number of project beneficiaries stands at 154,025 households (roughly equivalent to 1,078,175 individuals)- against a final target of 193,415 households (1,353,905 people), and the beneficiary satisfaction rate stands at 82 percent, already surpassing the end of project target of 65 percent. Notably, the project provided emergency food assistance to cover basic subsistence needs of 116,666 households (i.e., 816,662 people, 34 percent of which are female-headed) between July and October 2020 with the assistance of the WFP under the CERC. As envisaged at appraisal, the project has also supported the expansion of the Unified Social Register, identifying, and adding 9,211 potential beneficiary households (i.e., 46 percent of the project target) to the registry in support of strengthening the country’s social protection system. Information from this register underpins beneficiary selection in this project as well as other social protection initiatives in the country. To-date, the project has reached a total of 5,527 highly vulnerable, poor and food insecure households with direct cash transfers meant to support agricultural input purchase as well as build productive assets, representing over 70 percent of the end of project target of 7,700 such households. The project has also provided 330 grants to Productive Investment Projects (against an end of project target of 500 grants), the purpose of which is to help improve the productive capacity of moderately vulnerable poor smallholders who occasionally participate in markets, with a focus on emerging high-value crops (e.g., shea butter, fonio, sesame, cowpea, and sorrel). As part of support to groups benefiting from these grants, the project has trained 10,956 farmers (of which 41 percent are female) in key areas, such as the sanitary and phytosanitary measures, marketing, and cooperatives management. Overall, these grants have benefitted 11,550 households. 13. Under Component 2, productive infrastructure to be financed by the project has been identified based on priorities set in relevant Local Social, Economic and Cultural Development Plans. In total, 121 production infrastructure (including small vegetable gardens perimeters, inland valleys development, etc.) and 143 agricultural commodity marketing infrastructures (e.g., cereal banks, input shops, warehouses, etc.) have been identified across the participating regions. To-date, 33 production infrastructure (benefitting 3,960 households) and 81 marketing infrastructure (benefiting 8,748 households) have been developed and is fully in use. Additionally, 4,440 farmers have been trained on sustainable land water management to help address land degradation, and a total of 716 ha of land (i.e., 48 percent of the end of project target) has either been directly protected or reclaimed through project support. 14. Finally, the project has supported the establishment of an Agricultural Policy Support Unit (APSU) within the Ministry of Agriculture (MoA) to analyze agricultural sector data and to develop policy recommendations on that basis. The APSU has already undertaken a retrospective analysis of agricultural policies in Mali. 15. Given women’s preponderance in subsistence agriculture, the project addressed the factors affecting women’s agricultural production and marketing activities. It sought to improve their productivity as producers, agro-processors and retail sellers in major markets. These include access to male farm labor; better access to agricultural production and food processing technology; training in Page 10 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) modern technical and business development skills; and greater productivity of the lands on which they farm. II. DESCRIPTION OF ADDITIONAL FINANCING 16. The project and the AF are consistent with the WBG Country Partnership Framework (CPF)3 for Mali for the period of FY16-19 (2015-2019) which is articulated around three focus areas: (a) improving governance; (b) creating economic opportunities; and (c) building resilience. The country has witnessed two military coups between August 2020 and May 2021. Following the coup on May 24, 2021, the World Bank Operational Policy OP7.30 "Dealing with de facto government” was triggered and disbursement were placed on a temporary hold. Based on the conclusions of the OP 7.30 assessment, World Bank regional management decided to re-engage with Mali as of September 7, 2021. The de facto government has recognized the country's past international obligations and is committed to ensuring the implementation of the proposed AF. The parent project and AF are strongly aligned with the WBG’s People-Centered Engagement for Mali in FY23-24 as well as the Global Crisis Response Framework Pillar 1 (Responding to Food Insecurity) and Pillar 3 (Strengthening Resilience). Project activities target the poor and the vulnerable – including women and youth, and internally-displaced people. 17. The proposed AF primarily seeks: (i) to close the financing gap occasioned by reallocation of project resources initially programmed for other activities, towards the CERC, to cover costs of an emergency food security response; and (ii) cover cost overruns, occasioned by inflationary pressures, partly due to the war in Ukraine and insecurity. Proposed changes as a result of the AF are outlined below. 18. Project Areas: Given the rapidly changing food security situation across the country (with new hotspots emerging), the proposal is to not circumscribe project support to the current project areas (i.e., selected districts in four regions - Kayes, Koulikoro, Segou, and Mopti) but rather, retain flexibility to extend such support to eligible beneficiaries in any part of the recipient’s territory. 19. Project Costs: The proposed revised project costs by component are as presented in Table 2 below. The proposed changes reflect: (i) a US$8.94 million increase in IDA allocation to Component 1, US$1.00 million of which is proposed to go the extension of the social registry; US$3.54 million towards financing direct cash transfers and productive cash transfers, and US$4.40 million towards grants for Productive Investment Projects, all with the objective of enabling the project to meet original targets set at appraisal, but which were subsequently reduced at the first restructuring following activation of the CERC; (ii) an increase of US$14.56 million in IDA allocation to Component 2, US$10.6 million of which will go towards supporting productive and climate-resilient infrastructure investments, and US$3.96 million towards commercialization investments, all in the spirit of meeting project targets set at appraisal; and (iii) an increase of US$6.50 million in IDA resources allocated to Component 3 to help defray the increased costs of project coordination, including the cost of probable third-party implementation and monitoring, in light of the increasingly precarious security situation, and implementation of a proposed security management plan. 3 A Country Engagement Note (CEN) is currently under preparation. Page 11 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) Table 2: Revised IDA-financed project costs Component Cost (US$ million) Original 2021 With proposed restructuring AF Improving the productivity and resilience of beneficiary populations 32.50 26.50 35.44 Productive and climate-resilient infrastructure at the 17.00 14.50 29.06 community level Institutional support, crisis management, and project 10.50 19.00 25.50 coordination Total (US$ million) 60.00 60.00 90.00 20. PDO: As part of the 2021 restructuring, the PDO of the project was revised to align with the activation of the CERC. The revised PDO is thus: “to improve agricultural productivity and strengthen resilience of rural households living in the targeted dryland areas and to improve the Recipient’s capacity to respond effectively to an Eligible Crisis or Emergency.” The proposal with this AF is to formally document this change. 21. Closing Date Extension: A two-year closing date extension to December 31, 2025, is proposed to enable completion of project activities, which, for reasons indicated earlier, still lag. The new closing date will apply to both the original IDA credit and grant as well as to the proposed AF. This will be the first such closing date extension. 22. Results Indicators and Targets: In addition to sorghum, maize, and millet, the PDO level indicator on “yield increase of major crops in the project areas” - will also include “emerging crops in the project areas” e.g., - targeting fonio, sesame and cassava. Also, to reflect increased financing to project components as discussed above, several indicator targets are proposed to be changed (see Table 2 below). Table 2: Project outcome indicators Indicator (gender disaggregated) Target with Original Revised target 2021 target with proposed AF restructuring Households with access to cash transfers, productive 17,000 13,150 17,000 transfers, and grants (% of FHH) Direct cash transfer recipients (% women) 12000 7,700 12,000 Productive cash transfer recipients (% women) 9600 4,900 9,600 Grants for Productive Investments Projects 600 500 600 Productive infrastructure completed and used by 250 160 250 beneficiary community as a result of the project. Area directly protected or recovered as result from 2100 1500 3,000 investment of productive community infrastructure made by the project III. KEY RISKS 23. The overall risk rating is Substantial and mainly linked to the highly volatile situation which prevails in the country. Page 12 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) 24. The political and governance risk remains High. Mali continues to face political instability, following two coups d’état on August 18, 2020, and May 24, 2021, which resulted in the appointment of a transitional government. Disputes over the duration of the transitional period led to ECOWAS imposing economic and financial sanctions between January and July 2022. Despite the lifting of sanctions, further delays in the electoral timetable could trigger additional round(s) of economic sanctions and impede the project’s implementation through disrupted trade and financial flows. The transitional government sets its priorities on implementing a transitional action program, with a particular focus on the organization of presidential elections in 2024. However, social unrest represents another source of risks which could result in disruptions of the implementation of project activities or affect contractors, PCU staff and public stakeholders. Furthermore, insecurity has expanded to the Central regions in recent years and is increasingly disrupting service delivery and agriculture. This affects commitments, as spending prioritization is assigned to wages and security, leaving limited space for social protection and food security. As a result, political support needed to achieve food security and resilience objectives could be limited. In addition, there may be political and governance risks associated with the activities financed by the AF, related to the commitment and ability of the authorities to ensure appropriate targeting of the safety nets and sub-projects activities to reach the priority groups. These risks will be mitigated through systematic use of the Unified Social Registry for identifying the safety nets beneficiaries as well as using regional approval committees for awarding the sub-projects grants and disclosing the list of the sub- project beneficiaries. 25. The macroeconomic risk is Substantial. Macroeconomic risks are Substantial due to political uncertainty and competing urgent needs in a fiscally constrained environment. Intensification of conflicts could lead to further violence, thus posing a major threat to macroeconomic conditions and incomes. Mali is also experiencing severe fiscal pressures and faces the risk of not having sufficient fiscal space for non- essential investments. The six-month ECOWAS sanctions have dampened the growth and macro-fiscal outlook over the medium-term, while growing security and social pressures have narrowed the fiscal space for prospective interventions. This is compounded by the war in Ukraine, and additional monetary tightening in the eurozone through elevated inflation and debt refinancing costs on the regional market. The under-diversified economy remains vulnerable to external shocks including commodity price volatilities and adverse weather. These macroeconomic risks could affect the project via the difficulty for the Government to provide its contribution to some activities of the project as currently planned. 26. Institutional capacity for implementation and sustainability risk is rated Substantial. The project’s implementation involves several ministries, agencies, and activities in several different locations in the project area. Recent parent project experience has shown a coordination issue between those stakeholders. In addition, the ATI is still not well staffed and decentralized to effectively support the project’s implementation in the field. This risk will be mitigated through the following: (i) coordination improvement between the ministries in charge of agriculture and social protection and between the two implementing agencies (ATI and UGTFS); and (ii) support ATI capacity building activities. 27. Fiduciary risks associated with the parent project are Substantial. The procurement and FM risks initially assessed for the parent project cover risks associated with the safety nets delivery, the financing of sub-projects and civil works, including fraud and corruption risks. These risks will be mitigated by a stronger PIU with an already existing robust fiduciary system including (i) a full-time qualified financial management and procurement personnel; (ii) the use of financial and accounting manual; (iii) the use of the existing strong financial management and accounting software; (iv) the carrying out of internal controls and audits; (v) the yearly external audits conducted by independent private auditors; and (vi) Page 13 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) continued financial management and procurement supervision conducted by the World Bank teams along with regular trainings and day‐to‐day interactions. 28. Environment and social risks are Substantial. The AF is category B partial assessment like the parent project since it is additional resources to finance the gap created by the CERC with the same nature of activities. Project sites regions are under high vulnerability to climate change and shocks. The operational policies 4.01, Environmental Assessment, 4.36. Forests, 4.11. Physical Cultural Resources, 4.12. Involuntary Resettlement, and 4.09. Pest Management are triggered. According to their requirements, an Environmental and Social Management Framework (ESMF), a Resettlement Policy Framework (RPF), and pest management plan were prepared and disclosed on October 12, 2022. In addition, under the parent project, an Environmental and Social Impact Assessment was undertaken for construction of 242 commercialization (storage) and production infrastructures (shallows, ponds, gardening perimeters). The AF environmental risk is mainly related to construction and rehabilitation of productive and marketing infrastructure facilities. The Government has adopted a framework approach by updating the Environmental and Social Management Framework (ESMF), Resettlement Policy Framework (RPF), and Pest Management Plan (PMP) from the parent project. The security risk was assessed in project zones and a Security Management Plan was prepared. Those instruments were reviewed by the World Bank and disclosed both in-country on the project’s web site and on the World Bank’s site on October 12, 2022.4 All the environmental and social risks will be mitigated through (i) the use of safeguards instruments such as the ESMF, the RPF, the PMP and the SRA/SMP prepared for the project and (ii) conducting an environmental and social screening for each subproject and implementation of mitigation measures provided in the ESMP prepared for that purpose. 29. The SEA/SH risk level for the AF is rated as Substantial. This is mainly due to existence of child betrothal, prevalence of human trafficking in a country that lacks specific legislation on sexual harassment in public places. A project GBV/SEA/SH screening and rigorous data collection will be conducted, and a GBV/SEA/SH action plan will be developed accordingly, 3 months after project effectiveness. 30. Other risks are assessed as High. The increasing insecurity which has expanded to the Center and Southern regions could hinder or halt project implementation in some areas. The project carried out a Security Risk Assessment based upon which, a Security Management Plan was prepared to mitigate security risks. A second important other risk is related to the COVID-19 pandemic. Although the rate of new COVID-19 infections seems low, the COVID-19 pandemic continues to present a health risk that could shift the government priorities back to health services and other humanitarian needs. This risk will be mitigated with the inclusion of hygiene and sanitary protocols in line with national regulations and international good practice and procedures for virtual and remote consultation 5 in all project-related 8 F activities. IV. APPRAISAL SUMMARY A. Implementation Arrangements 4https://pdazam.ml/publications/ 5World Bank Group (March 2020) Technical Note: Public Consultations and Stakeholder Engagement in WB-supported operations when there are constraints on conducting public meetings March 20, 2020. Retrieved from: https://biwta.portal.gov.bd/sites/default/files/files/biwta.portal.gov.bd/page/f3ca1ff6_95b0_4606_849f_2c0844e455bc/2020- 10-01-11-04-717aa8e02835a7e778b2fff46f531a8c.pdf Page 14 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) 31. Institutional arrangements remain the same, and the project will continue to be implemented by a Project Coordination Unit (PCU) that is embedded in the Land and Irrigation Management Agency (ATI), in MoA in collaboration with the existing Jigisemejiri Project Implementation Unit (UTGFS), under the Ministry of Economy and Finance (MEF). The PCU is staffed with a National Coordinator, an Economist, an Administrative and Financial Officer, an Accountant, a Procurement Officer, an Environmental Safeguards Specialist, a Social Safeguards Specialist, cash transfers facilitation officers, and support staff. At the regional level, there are regional offices established in the respective Regional Rural Infrastructure Departments of the MoA to coordinate activities. They operate as field offices of the PCU to which they report and include a Regional Coordinator, technical/operations an environmental specialist, gender and social inclusion specialist, M&E assistant, accounting assistant, procurement assistant and support staff. Because of the persistent capacity weaknesses both at the central, regional and district levels, on-the- ground execution of project activities will continue to be supported by different types of operators, such as companies, consulting firms, individual consultants, NGOs, and technical services, in the form of contracts, or agreements. 32. Given the rapidly changing security situation, the proposal is to retain the flexibility to contract out some of the work to specialized United Nations agencies (e.g., WFP and FAO) - the only organizations in Mali with the demonstrated capacities to support project activities as designed and which have preferential access to areas that might not be secure. The contracts to be signed between the Republic of Mali and these UN agencies will include, inter alia, details of activities to be provided, technical and financial reporting requirement, reporting frequency, safeguards issues, monitoring, and evaluation during and at the end of project implementation. B. Economic and Financial Analysis 33. A series of crop and farm budgets were developed for without-project and with-project scenarios. The discount rate is assumed at 5 percent in line with the World Bank guidelines and the country context. An investment horizon of 15 years is used in the analysis. The project’s economic internal rate of return (EIRR) is estimated at 13.4 percent, with a corresponding economic net present value (ENPV) of US$180 million. An analysis was also conducted incorporating the social value of carbon. Based on a net balance of -0.49 million tCO2‐eq per year as well as a social value of carbon starting at US$43 (low value) and US$86 (high value) in 2023, the project’s ENPV that includes benefits from value of carbon reduction is estimated at US$218 million (at low value of carbon) and US$418 million (at high value of carbon). Results show that the return on the project’s investment would remain well above the discount rate. 34. Furthermore, sensitivity analysis for key variables demonstrates the robustness of the economic results. The ENPV (not including carbon benefits) is positive for all proposed changes, and the EIRR (not including carbon benefits) is above the opportunity cost of capital. Sensitivity analysis based on project cost increases of 10 percent and 30 percent gives EIRRs of 11.6 percent and 8.7 percent, respectively. The corresponding ENPVs are US$15.1 million and US$9.4 million, respectively. The sensitivity analysis based on a one-year or two-year delay in the realization of benefits gives EIRRs of 10.7 percent and 8.6 percent, respectively. The corresponding ENPVs are, respectively, US$13.1 million and US$8.5 million. Since the NPV of environmental externalities is positive, the ENPV including carbon benefits will also be positive for all proposed changes. The analysis thus supports the public investment decision. C. Technical 35. This AF builds upon the significant technical work and experience gained over the last four years of PDAZAM implementation. No changes are proposed to the technical design. Page 15 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) D. Financial Management 36. In line with the World Bank’s Policy, which describes the overall FM operational policies and procedures as stated in the FM Manual effective on March 1, 2010, and revised on September 7, 2021, the FM assessment was conducted for the parent project. The current FM arrangements are working effectively. Therefore, the same FM arrangements established for the parent project will apply for the proposed AF under the PDAZAM and UGTFS PIUs responsibility: (i) The FM team in place is fully dedicated to the ongoing parent project and is familiar with World Bank procedures. This FM team comprising of an FM specialist and one accountant remains and it will be reinforced if needed; and (ii) the financial accounting manual and software in place are adequate. 37. The overall FM performance of the parent project was rated as Moderately Satisfactory further to the supervision undertaken in April 2022, and the FM residual risk was assessed as Moderately, mainly due to late submission of the 2021 external audit report and the 2022 internal audit plan and delays in conducting inventories of physical assets. 38. As a result of the above-mentioned FM assessment, the following mitigation measures should be put in place within two months after effectiveness of the AF financing agreement: (i) customize the accounting software to include the AF; (ii) update the internal auditor’s work-program to fully reflect the current project; and (iii) revise the terms of reference (TORs) of the external Auditor to reflect the AF. 39. The disbursements will be based on Statements of Expenditures. Other disbursement methods, such as reimbursement, special commitment and for instance direct payment will apply as well. Disbursements under contracts for goods, works, non-consulting services and consulting services procured or selected through international open, or limited competition, or direct selection, as set out in the procurement plan, must be made only through direct payment and/or special commitment disbursement methods. The minimum value of applications for these methods is 20 percent of the DA ceiling. The project will sign and submit Withdrawal Applications (WA) electronically, using the [eDisbursement] module accessible from the Bank’s Client Connection website. 40. Financial reporting and audit arrangements will remain the same as for the ongoing project. The unaudited interim financial reports (IFRs) are prepared every quarter and submitted to the World Bank within 45 days of the end of each calendar quarter. The audit report of the current project covering the period ending on December 31, 2021, was submitted on time and the external auditor expressed an unqualified opinion. The accounts of the AF will be audited on an annual basis and the external audit report will be submitted to IDA no later than six months after the end of each calendar year, similar to the original project. The project will comply with the World Bank’s disclosure policy of audit reports and place the information provided on the official website within one month of the report being accepted as final by the team. E. Procurement 41. The procurement arrangements of the original project will continue to apply, as the same Implementing Agencies will manage the procurement of all activities. The Procurement Plan of the AF has been prepared and reviewed and agreed by the World Bank. Current procurement rating is MS mainly on account of challenges in timely recording of information in STEP. This issue is being resolved through capacity building of procurement staff. Based on the current overall residual fiduciary risk, which is Substantial, the project will be supervised twice a year to ensure that project FM and procurement arrangements still operate well, and funds are used for the intended purposes and in an efficient way. Page 16 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) 42. Procurement under the AF will be carried out in accordance with the World Bank’s Procurement Regulations for IPF Borrowers for Goods, Works, Non-Consulting and Consulting Services, dated November 2020. As with the parent project, the AF will be subject to the World Bank’s Anticorruption Guidelines, dated October 15, 2006, revised in January 2011, and as of July 1, 2016. The project will use the Systematic Tracking of Exchanges in Procurement (STEP) to plan, record, and track procurement transactions. The project will frequently update progress of these procurements in STEP in order to be able to identify and monitor progress of these procurement activities. A first 18-month procurement plan and a Project Procurement Strategy for Development (PPSD) were prepared by the GoM to propose appropriate procurement approaches and packages for the AF. 43. The procurement risk is Substantial. The World Bank’s oversight of procurement will be done through increased implementation support and continued capacity building of the Procurement staff. The World Bank standard prior and post review arrangements apply as specified in the procurement plan. F. Social (including Safeguards) 44. The parent project social risk is Substantial, and the overall social performance is Moderately Satisfactory. Activities to be financed will positively affect communities’ beneficiaries of safety net support and commercialization and production infrastructures development. However, the same communities can be negatively affected during beneficiaries’ identification and during ongoing civil works construction. During constructions, beneficiaries’ assets or their economic activities can also be affected or disturbed. The project updated the RPF which was approved by the World Bank and disclosed on October 12, 2022. The Grievance Redress Mechanism (GRM) of the parent project will be strengthened for operational efficiency and will be extended to AF activities. To address security issues in project areas, the government has undertaken a security risk assessment. According to identified risks a security management plan with several measures was developed for implementation during operational phase of AF. G. Environment (including Safeguards) 45. The environmental risk of the parent project is Substantial, and the performance is Moderately Satisfactory. The AF is category B with substantial risks. The activities to be financed will be the same nature as under the parent project in wetlands zones. The shallows and ponds to be managed and rehabilitated are fragile ecosystems, refuges of water and specific fauna in semi-arid environments. The project will develop commercialization (storage) and production infrastructures (shallows, ponds, gardening perimeters). All these activities may have adverse environmental impacts that need to be managed appropriately. The project will also support activities that will have a positive impact on the environment, such as farmer-managed-natural-regeneration. The project will use both framework and specific instruments approaches. An ESIA has been prepared on the parent project, and the Environmental and Social Management Plan (ESMP) will be implemented during the construction phase of commercialization (storage) and production infrastructures (shallows, ponds, gardening perimeters). The ESMF is also updated to cover sites not yet known, GBV/SEA/SH risks, and it was disclosed on October 12, 2022, after the World Bank’s approval. The Pest Management Plan (PMP) was also updated for the AF and disclosed on October 12, 2022, after the World Bank’s approval. H. Gender 46. The parent project was gender-tagged, and the AF will continue to contribute to the reduction of gender disparities through specific activities targeted to address women’s economic needs. Under Subcomponent 1.1, vulnerable women-headed households have equal access to the RSU registration and Page 17 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) DCT. Under Subcomponent 1.2, qualifying women will continue to receive cash transfers as well as a productive cash transfers for allocation to small-scale agriculture on their plots. Under Subcomponent 1.3, the project will continue to provide technical and material support to women producers’ associations or groups. Local extension and advisory services will be given technical training and field support by NGOs with expertise in the implementation of women’s specific rural development projects. As such, they will teach strategies for identifying women producers’ needs. The improvements in productive and marketing infrastructure under subcomponents 2.2 and 2.3 will be designed to and fine-tuned to benefit women producers and marketers. I. Security Management 47. The AF is proposed in a context where Mali has become increasingly fragile with persistent worsening, or rapidly changing circumstances from a security perspective. A confluence of insecurity and vulnerability (including food insecurity) demands that the project intervene in areas that could be insecure to achieve the PDO, while it is also probable that intervention sites once deemed secure could become insecure over the course of implementation. The proposal is to adopt a flexible approach to implementation, where the combinations of activities (cash transfers, promotion of emerging high-value crops, productive infrastructure, etc.) implemented in a location will be dictated by the local circumstances. As a principle, support to emerging high-value crops and productive infrastructure which require longer gestation periods, would be provided only in areas deemed secure to guarantee the safety of investments, while the implementing agencies will make judgements on implementation of the cash transfers. There will be the flexibility to change implementation locations as the security situation evolves. In addition, the project has prepared a Security Management Plan (SMP), considering the recent security risk assessment. The SMP describes how security will be managed and delivered and what resources will be required under the project. The SMP will be constantly updated to respond to changes in the security situation in the respective intervention locations as may be required throughout the project implementation. V. WORLD BANK GRIEVANCE REDRESS 48. Grievance Redress. Communities and individuals who believe that they are adversely affected by a project supported by the World Bank may submit complaints to existing project-level grievance mechanisms or the Bank’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project-affected communities and individuals may submit their complaint to the Bank’s independent Accountability Mechanism (AM). The AM houses the Inspection Panel, which determines whether harm occurred, or could occur, as a result of Bank’s non-compliance with its policies and procedures, and the Dispute Resolution Service, which provides communities and borrowers with the opportunity to address complaints through dispute resolution. Complaints may be submitted to the AM at any time after concerns have been brought directly to the attention of Bank Management and after Management has been given an opportunity to respond. For information on how to submit complaints to the Bank’s Grievance Redress Service (GRS), please visit http://www.worldbank.org/GRS. For information on how to submit complaints to the Bank’s Accountability Mechanism, please visit https://accountability.worldbank.org. Page 18 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) VI. SUMMARY TABLE OF CHANGES Changed Not Changed Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Implementing Agency ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Other Change(s) ✔ VII. DETAILED CHANGE(S) PROJECT DEVELOPMENT OBJECTIVE Current PDO To improve agricultural productivity and strengthen resilience of rural households living in the targeted dryland areas Proposed New PDO To improve agricultural productivity and strengthen resilience of rural households living in the targeted dryland Page 19 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) areas and to improve the Recipient’s capacity to respond effectively to an Eligible Crisis or Emergency COMPONENTS Current Component Name Current Cost Action Proposed Component Proposed Cost (US$, (US$, millions) Name millions) Improving the productivity 29.00 Revised Improving the 35.44 and resilience of beneficiary Productivity and populations Resilience of Beneficiary Populations Productive Infrastructure at 14.50 Revised Productive 29.06 Community Level Infrastructure at Community Level Institutional Support, Crisis 21.00 Revised Institutional Support, 25.50 Management and Project Crisis Management and Coordination Project Coordination TOTAL 64.50 90.00 LOAN CLOSING DATE(S) Ln/Cr/Tf Status Original Closing Current Proposed Proposed Deadline Closing(s) Closing for Withdrawal Applications IDA-62830 Effective 30-Sep-2023 30-Sep-2023 31-Dec-2025 30-Apr-2026 IDA-D3400 Effective 30-Sep-2023 30-Sep-2023 31-Dec-2025 30-Apr-2026 Expected Disbursements (in US$) DISBURSTBL Fiscal Year Annual Cumulative 2018 0.00 0.00 2019 1,099,890.00 1,099,890.00 2020 2,527,290.00 3,627,180.00 2021 3,461,550.00 7,088,730.00 2022 4,361,820.00 11,450,550.00 2023 4,582,350.00 16,032,900.00 2024 5,037,090.00 21,069,990.00 Page 20 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) 2025 4,748,550.00 25,818,540.00 2026 4,181,460.00 30,000,000.00 SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Risk Category Latest ISR Rating Current Rating Political and Governance ⚫ High ⚫ High Macroeconomic ⚫ High ⚫ Substantial Sector Strategies and Policies ⚫ Moderate ⚫ Moderate Technical Design of Project or Program ⚫ Substantial ⚫ Moderate Institutional Capacity for Implementation and ⚫ Moderate ⚫ Substantial Sustainability Fiduciary ⚫ Substantial ⚫ Substantial Environment and Social ⚫ Substantial ⚫ Substantial Stakeholders ⚫ Moderate ⚫ Moderate Other ⚫ High ⚫ High Overall ⚫ Substantial ⚫ Substantial LEGAL COVENANTS2 LEGAL COVENANTS – Additional Financing-Mali Drylands Development Project (P177323) Sections and Description Schedule 2 Section I A 1 1. The Recipient shall vest in its MA the responsibility of implementing the overall Project. To that end, the Recipient shall cause the ATI to maintain a PCU until the completion of the Project, with terms of reference and staffing satisfactory to the Association, to be specifically responsible for: (a) Project management and coordination, including monitoring and evaluation, preparation of AWP&B, financial management and procurement for the Project, except for Parts A.1 and A.2 of the Project, accounting, and preparation of MOUs with other Implementing Ministries and implementing partners; and (b) preparing Project Reports and financial statements. Schedule 2 Section I A 2 2. The Recipient, through the MEF, shall maintain UTGFS until December 31, 2022 or any other entity found satisfactory to the Association after January 1, 2023, until the completion of the Project, with terms of reference and staffing satisfactory to the Association, to be responsible for collaborating with the social development regional directorates within MSDS and overseeing the implementation of Parts A.1 and A.2. of the Project, including financial management and procurement for Parts A.1 and A.2 of the Project. Page 21 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) Schedule 2 Section I A 3 3. The Recipient shall take all measures on its part to ensure that the Project is carried out in coordination with the relevant ministries and agencies, including the Implementing Ministries, as further set forth in the MOUs and the PIM. Schedule 2 Section I A 4 4. The Recipient shall ensure that the Implementing Ministries: (a) comply with the provisions of the MOU to which they are a party; (b) maintain a dedicated team for the implementation of Project activities, with adequate staffing with qualifications and responsibilities satisfactory to the Association; and (c) carry out the Project activities and their respective obligations under their respective MOUs in accordance with the PIM, the Safeguards Instruments, and this Agreement. Schedule 2 Section I A 5 5. The Recipient shall establish and maintain until the completion of the Project, a Steering Committee with terms of reference and composition satisfactory to the Association, to be responsible for providing guidance for the Project, approving the AWP&B, and reviewing the Project Reports. Schedule 2 Section I A 6 6. The Recipient shall establish and maintain until the completion of the Project for regions of Kayes, Koulikoro, Segou, and Mopti: (a) Regional Coordination Committees, with terms of reference and composition satisfactory to the Association, to be responsible for overseeing and monitoring the Project implementation in the respective regions; and (b) regional Project implementation offices, with terms of reference and staffing satisfactory to the Association, to be responsible for coordinating the activities under Parts A.3, B.2 and B.3 of the Project. Schedule 2 Section I A 7 7. The Recipient: (a) shall ensure that the Project is carried out in accordance with the PIM; provided, however, that in case of any conflict between the provisions of the PIM and the provisions of this Agreement, the provisions of thisAgreement shall prevail; and (b) except as the Association shall otherwise agree, shall not amend, abrogate or waive any provision of the PIM. Schedule 2 Section I A 8 8. The Recipient: (a) shall maintain a revised manual, as part of the PIM, for managing the Productive Investment Projects (“Grant Manual”) under Part A.3(c) of the Project; and (b) except as the Association shall otherwise agree, shall not amend, abrogate or waive any provision of the Grant Manual. Schedule 2 Section I A 9 9. The Recipient shall, no later than three (3) months after the Effective Date: (a) update the Project Implementation Manual (the “PIM”) in form and substance satisfactory to the Association; and (b) cause the MA and MEF update the existing MOU on the Project implementation arrangement as set forth in the PIM, for the implementation of Parts A.1 and A2 of the Project. Schedule 2 Section I A 10 Page 22 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) 10. The Recipient, through the PCU, shall: (a) prepare a draft AWP&B for each Fiscal Year, setting forth: (i) a detailed description of planned activities for the Project for the following Fiscal Year; (ii) the sources and uses of funds therefor; and (iii) responsibility for execution of said Project activities, budgets, start and completion dates, outputs, and monitoring indicators to track the progress of each activity; (b) not later than November 30 of each Fiscal Year, furnish to the Association for its comments and approval, a Steering Committee-approved AWP&B; and (c) adopt the final version of the AWP&B in the form approved by the Association not later than December 31 of such Fiscal Year. The AWP&B may be revised as needed during Project implementation, subject to the Association’s prior approval. Schedule 2 Section I B B. Direct Cash Transfer Program and Productive Cash Transfer Program 1. Under Parts A.2(a) and A.2(b) of the Project, the Recipient, through UTGFS or any other entity in charge, shall cause the Payment Agencies to implement the DCTP and PCTP in accordance with the eligibility criteria and procedures acceptable to the Association, and described in the DCTP Contracts (up to a maximum amount of FCFA 15,000 per DCTP Beneficiary per month), PCTP Contracts (up to FCFA 250,000 per PCTP Beneficiary), and the provisions of the PIM. 2. To facilitate the carrying out of Parts A.2(a) and A.2(b) of the Project, the Recipient, through UTGFS, or any other entity in charge, shall make part of the proceeds of the Financing allocated to Category (1) and (2) of the table set forth in Section III.A of this Schedule available to Payment Agencies under contracts between UTGFS, or any other entity in charge, and each of the selected Payment Agencies (“DCTP Contracts” or “PCTP Contracts” as appropriate for each Category), under terms and conditions approved by the Association. 3. The Recipient shall exercise its rights under each of the DCTP Contracts or PCTP Contacts referred to in paragraph (2) immediately above in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Financing. Except as the Association shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive any of said contracts or any provisions thereof. 4. The Recipient shall ensure that the amount of each Cash Transfer is paid, by the Payments Agencies, to its intended Beneficiaries. Schedule 2 Section I C C. Grant Program 1. The Recipient shall make Grants to Grant Beneficiaries to finance Productive Investment Projects in accordance with eligibility criteria and procedures acceptable to the Association, which shall include the following: A. No proposed Productive Investment Project shall be eligible for financing under a Grant to a Grant Beneficiary unless the Recipient shall have determined on the basis of an appraisal carried out in accordance with guidelines acceptable to the Association and elaborated in the Grant Manual, that: (i) the proposed Productive Investment Project: (A) is designed to promote emerging select crop value chains through the financing of technical assistance, goods, services, training and operating costs required for Productive Investment Project activities; (B) is technically feasible and economically and financially viable; and (C) if, pursuant to the Safeguards Documents, one or more plans for the Productive Investment Project are required, such plans Page 23 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) have been prepared and approved by the Recipient in accordance with the provisions of the Safeguards Documents; and (ii) the proposed Grant Beneficiary: (A) is a producer group established and operating under the laws of the Recipient with the technical capacity and financial resources necessary to carry out the proposed Productive Investment Project; (B) has prepared a satisfactory business proposal, including financing plan and budget, and a satisfactory implementation plan for the proposed Productive Investment Project; (C) has demonstrated the capacity, and has committed, to finance at least 15% of the total estimated cost of the Productive Investment Project out of its own resources; and (D) each Grant to a single Grant Beneficiary shall not exceed FCFA 10,000,000. 2. The Recipient shall make each Grant under a Grant Agreement with the respective Grant Beneficiary on terms and conditions approved by the Association, and in accordance with the Grant Manual, which shall include the following: A. The Grant shall be made on a non-reimbursable grant basis. B. The Recipient shall obtain rights adequate to protect its interests and those of the Association, including the right to: (i) suspend or terminate the right of the Grant Beneficiary to use the proceeds of the Grant, or obtain a refund of all or any part of the amount of the Grant then withdrawn, upon the Grant Beneficiary’s failure to perform any of its obligations under the Grant Agreement; and (ii) require each Grant Beneficiary to: (A) carry out its Productive Investment Project with due diligence and efficiency and in accordance with sound technical, economic, financial, managerial, environmental and social standards and practices satisfactory to the Association, including in accordance with the provisions of the Grant Manual, Safeguards Documents, and the Anti- Corruption Guidelines applicable to recipients of grant proceeds other than the Recipient; (B) provide, promptly as needed, the resources required for the purpose; (C) maintain policies and procedures adequate to enable it to monitor and evaluate in accordance with indicators acceptable to the Association, the progress of the Productive Investment Project and the achievement of its objectives; (D) enable the Recipient and the Association to inspect the Productive Investment Project, its operation and any relevant records and documents; and (E) prepare and furnish to the Association all such information as the Recipient or the Association shall reasonably request relating to the foregoing. 3. The Recipient shall exercise its rights and carry out its obligations under each Grant Agreement in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Financing. Except as the Association shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive any Grant Agreement or any of its provisions. Schedule 2 Section I D D. Safeguards 1. The Recipient shall ensure that the Project is implemented in accordance with the Safeguards Documents. 2. Except as the Association shall otherwise agree in writing, and subject to compliance with the same consultation and information disclosure requirements as applied to the adoption of the aforesaid Safeguards Documents in the first instance, the Recipient shall not amend or waive any provision of the Safeguards Documents, nor shall it permit any Beneficiaries or Payment Agency to do so. 3. Without limitation upon its other reporting obligations under this Agreement, the Recipient shall take all measures necessary to regularly collect and compile, and submit to the Association, as part of the Project Reports, and promptly in a separate report whenever the circumstances warrant, information on the status of compliance Page 24 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) with the Safeguards Instruments, providing details of: (a) the measures taken in furtherance of the Safeguards Instruments; (b) conditions, if any, which interfere or threaten to interfere with the smooth implementation of the Safeguards Instruments; and (c) remedial measures taken or required to be taken to address such conditions. 4. In case of any inconsistency between the provisions of any of the Safeguards Instruments and this Agreement, the provisions of this Agreement shall prevail. 5. The Recipient shall ensure that all advisory, analytical, planning, institutional capacity building, strategizing and such other services, carried out under the Project shall be carried out according to terms of reference, satisfactory to the Association, requiring such services to deliver products which take into account, and are consistent with, the Association’s social and environmental safeguard policies. Schedule 2 Section I E E. Contingent Emergency Response Arrangements for Part C.2 of the Project 1. In order to ensure the proper implementation of Part C.2 of the Project (“CERC Part”), the Recipient shall: (a) prepare and furnish to the Association for its review and approval an operations manual which shall set forth detailed implementation arrangements for the CERC Part, including: (i) designation of terms of reference for, and resources to be allocated, to the entity to be responsible for coordinating and implementing the CERC Part (“Coordinating Authority”); (ii) specific activities which may be included in the CERC Part, Eligible Expenditures required therefor (“Emergency Expenditures”), and any procedures for such inclusion; (iii) financial management arrangements for the CERC Part; (iv) procurement methods and procedures for the CERC Part; (v) documentation required for withdrawals of Emergency Expenditures; (vi) environmental and social safeguard management frameworks for the CERC Part, consistent with the Association’s policies on the matter; and (vii) any other arrangements necessary to ensure proper coordination and implementation of the CERC Part, including an Emergency Action Plan; (b) afford the Association a reasonable opportunity to review said proposed operations manual; (c) promptly adopt such operations manual for the CERC Part as shall have been approved by the Association (“CERC Operations Manual”); (d) ensure that the CERC Part is carried out in accordance with the CERC Operations Manual; provided, however, that in the event of any inconsistency between the provisions of the CERC Operations Manual and this Agreement, the provisions of this Agreement shall prevail; and (e) not amend, suspend, abrogate, repeal or waive any provision of the CERC Operations Manual without prior approval by the Association. 2. The Recipient shall, throughout the implementation of the CERC Part, maintain the Coordinating Authority, with adequate staff and resources satisfactory to the Association. 3. The Recipient shall undertake no activities under the CERC Part (and no activities shall be included in the CERC Part) unless and until the following conditions have been met in respect of said activities: (a) the Recipient has determined that an Eligible Crisis or Emergency has occurred, has furnished to the Association a request to include said activities in the CERC Part in order to respond to said Eligible Crisis or Emergency, and the Association has agreed with such determination, accepted said request and notified the Recipient thereof; and (b) the Recipient has prepared and disclosed all safeguards instruments required for said activities, in accordance with the CERC Operations Manual, the Association has approved all such instruments, and the Page 25 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) Recipient has implemented any actions which are required to be taken under said instruments. Schedule 2 Section I F F. Counterpart Funding The Recipient shall take all necessary measures to defray all the cost of expenditures incurred in relation to the execution of the Project for environmental and social safeguards implementation, and not otherwise financed out of the proceeds of the Financing. Conditions Type Financing source Description Disbursement IBRD/IDA Schedule 2 Section III B.1 B. Withdrawal Conditions; Withdrawal Period 1. Notwithstanding the provisions of Part A above, no withdrawal shall be made: (a) for payments made prior to the Signature Date; or (b) under Category (6) for Emergency Expenditures, unless and until all of the following conditions have been met in respect of said expenditures: (i) (A) the Recipient has determined that an Eligible Crisis or Emergency has occurred, and has furnished to the Association a request to withdraw Financing amounts under Category (2); and (B) the Association has agreed with such determination, accepted said request and notified the Recipient thereof; and (ii) the Recipient has adopted the CERC Operations Manual and Emergency Action Plan, in form and substance acceptable to the Association. Page 26 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) VIII. RESULTS FRAMEWORK AND MONITORING Page 27 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) Results Framework COUNTRY: Mali Additional Financing-Mali Drylands Development Project Project Development Objective(s) To improve agricultural productivity and strengthen resilience of rural households living in the targeted dryland areas and to improve the Recipient’s capacity to respond effectively to an Eligible Crisis or Emergency Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 Improved agricultural productivity Yield increase of major crops in the project 0.00 0.00 3.50 8.20 13.60 20.00 20.00 areas (Percentage) Action: This indicator has been Revised Yield increase of 1.20 0.00 1.24 1.30 1.36 1.44 1.44 fonio (Metric ton) Action: This indicator has been Revised Yield increase in 2.50 0.00 2.59 2.71 2.84 3.00 3.00 Maize (Metric ton) Action: This indicator has been Revised Yield increase in 1.00 0.00 1.04 1.08 1.14 1.20 1.20 Millet (Metric ton) Page 28 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 Action: This indicator has been Revised Yield increase for emerging crops in 0.00 10.00 20.00 20.00 targeted areas (Percentage) Action: This indicator is New Yield increase for 0.75 0.80 0.90 0.90 fonio (Metric ton) Action: This indicator is New Yield increase for cassava (T/ha) 10.00 11.00 12.00 12.00 (Metric ton) Action: This indicator is New Yield increase for 0.50 0.55 0.57 0.60 sesame (Metric ton) Action: This indicator is New Strengthened resilience of rural households Proportion of cash transfer beneficiary households with food 46.00 70.00 70.00 75.00 85.00 90.00 70.00 70.00 consumption score above 35 (Percentage) Page 29 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 Action: This indicator has been Revised Beneficiary satisfaction with project interventions Beneficiary statisfaction rate with services provided by 0.00 0.00 0.00 50.00 50.00 65.00 75.00 65.00 70.00 the project (Percentage) Action: This indicator has been Revised Number of direct project beneficiaries Direct beneficiary households of the 0.00 1,000.00 151,000.00 155,000.00 0.00 16,000.00 33,415.00 43,415.00 193,415.00 project (Number) Action: This indicator has been Revised Female head of household direct 0.00 100.00 51,100.00 51,500.00 0.00 6,880.00 14,368.00 18,668.00 83,168.00 beneficiaries of the project (Number) Action: This indicator has been Revised PDO Table SPACE Page 30 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 Component 1 - Improving the productivity and resilience of beneficiary populations Households with access to cash transfers, productive transfers 0.00 0.00 200.00 4,747.00 12,753.00 12,753.00 17,000.00 17,000.00 17,000.00 and grants (gender disagreg) (Number) Action: This indicator has been Revised Direct cash transfer 0.00 0.00 0.00 2,897.00 7,727.00 7,727.00 12,000.00 12,000.00 12,000.00 recipients (Number) Action: This indicator has been Revised Productive cash transfer recipients 0.00 0.00 0.00 1,500.00 5,026.00 5,026.00 9,600.00 9,600.00 9,600.00 (Number) Action: This indicator has been Revised Grants for PIPs 0.00 0.00 200.00 350.00 180.00 350.00 450.00 600.00 600.00 (Number) Action: This indicator has been Revised Farmers adopting improved agricultural 0.00 0.00 2,000.00 3,000.00 2,000.00 5,000.00 8,000.00 10,000.00 10,000.00 technology (CRI, Number) Page 31 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 Action: This indicator has been Revised Farmers adopting improved agricultural 0.00 0.00 500.00 1,000.00 2,000.00 2,500.00 2,500.00 technology - Female (CRI, Number) Farmers provided with climate-resilient crop 0.00 3,000.00 7,000.00 10,000.00 10,000.00 varieties/seeds (Number) (Number) Action: This indicator is New Component 2 - Productive Infrastructure at the Community Level Productive infrastructure completed and used by 0.00 0.00 50.00 100.00 92.00 60.00 78.00 20.00 250.00 beneficiary community as a result of the project. (Number) Action: This indicator has been Revised Area directly protected or recovered as result from investment of productive community 0.00 0.00 300.00 800.00 300.00 1,500.00 2,500.00 3,000.00 3,000.00 infrastructure made by the project (Hectare(Ha)) Action: This indicator has been Revised Page 32 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 Component 3 - Institutional support, crisis management, and project coordination Agricultural policies affecting dryland enforced as a result of 0.00 0.00 1.00 2.00 2.00 4.00 6.00 7.00 7.00 the project policy notes (Number) Action: This indicator has been Revised Number of households receiving emergency 0.00 0.00 150,000.00 150,000.00 0.00 116,000.00 35,000.00 0.00 150,000.00 support from the Project (Number) Action: This indicator has been Revised Grievances addressed 0.00 100.00 100.00 (Percentage) Action: This indicator is New IO Table SPACE Monitoring & Evaluation Plan: PDO Indicators Mapped Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection Progress reports/PDAZ Yearly surveys, statistical Yield increase of major crops in the Yearly PCU AM M&E databases project areas system, deconcentrate Page 33 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) d offices of MA and Directorate of statistics Progress Average yield of Sorghum reports/PDAZ among project AM M&E beneficiaries adopting system, improved technology Yearly survey, statistical Yearly deconcentrate PCU Yield increase of fonio promoted by the project. databases d offices of Yields are measured in MA and ton/ha in rainfed directorate of conditions statistics Progress report/PDAZA Average yield of Maize M M&E among project system, beneficiaries adopting new Yearly survey, statistical Yearly deconcentrate PCU Yield increase in Maize technology promoted by databases d offices of the project. Yields are MA and measured in ton/ha, under Directorate of rainfed conditions. statistics Average yield of Millet Progress among project report/PDAZA beneficiaries adopting M M&E Yearly survey, statistical Yearly PCU Yield increase in Millet improved technology system, databases promoted by the project. deconcentrate Yields are measured in d offices of ton/ha, under rainfed MA and Page 34 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) conditions Directorate of statistics Surveys, Yield increase for emerging crops in Yearly Progess Surveys M&E Officer targeted areas reports Yield increase of fonio in targeted area for Yearl Yearly Survey PCU Yield increase for fonio beneficiaries of technology and sub-project financing Cassava yield increase du Progress to technology provided by Yearly Survey PCU Yield increase for cassava (T/ha) reports the project or sub-project financing Yield increase of sesame Progress among beneficiaries of Yearly Surveys PCU Yield increase for sesame reports technology or sub-project financing Proportion of households within the beneficiary households of cash transfers, showing a food Progress Proportion of cash transfer beneficiary consumption score above report/PDAZA Yearly Survey of beneficiaries UTGFS/PCU households with food consumption score 35. The food consumption M and M&E above 35 score methodology is system defined by the WFP (World Food Program) and calculated at the household level. Beneficiary statisfaction rate with services Percentage of beneficiaries Mid term, Progress Survey UTGFS and PCU provided by the project who express satisfaction and end of reports/PDAZ Page 35 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) with the services provided project AM M&E in the project areas based system on formal surveys. It is expected that a survey to measure this indicator will be carried out twice throughout the project. The sample size should be representative of the total number of beneficiaries. Total number of households receiving either cash transfers, productive cash transfers or project Progress grants, and household Extracted from RSU PCU/UTGFS and other Every 6 reports/PDAZ Direct beneficiary households of the beneficiaries (farmers) database and grant implementing months AM M&E project adopting improved management database institutions System technology promoted by the project. Households may benefit from more than one of these, but are only accounted once. Total number of women acting as head of household (either de facto Progress or de jure) receiving either RSU and UTGFS Every 6 report/PDAZA Female head of household direct direct cash transfers, database and grant PCU/UTGFS months M M&E beneficiaries of the project productive cash transfers, database system project grants and farmer women acting as head of household (either de facto or de jure) adopting Page 36 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) improved technology promoted by the project. Households may benefit from more than one of these, but are only accounted once. ME PDO Table SPACE Monitoring & Evaluation Plan: Intermediate Results Indicators Mapped Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection Beneficiaries households receiving any of the three Progress Extracted from RSU forms of direct financial Households with access to cash transfers, Every 6 reports/PDAZ register and UTGFS support from the project. UTGFS/PCU productive transfers and grants (gender months AM M&E records and grant Households may benefit disagreg) System database from more than one source of financial support, but are accounted only once. Social registry Total number of Every 6 and related Running database households receiving direct UTGFS/PCU Direct cash transfer recipients months information reports cash transfers from the system project. Progress Total number of Social registry and Every 6 reports/PDAZ households receiving related information UTGFS/PCU Productive cash transfer recipients months AM M&E productive cash transfers system system from the project. Total number of grant Every 6 Deconcentrat Grant monitoring PCU Grants for PIPs decisions approved for months ed offices of database Page 37 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) financing by the project as MA and PCU Productive Investments Projects (PIPs). This indicator measures the number of farmers (of agricultural products) who have adopted an improved agricultural technology promoted by operations supported by the World Bank. NB: "Agriculture" or "Agricultural" includes: crops, livestock, capture fisheries, aquaculture, Progress agroforestry, timber and Every 6 reports/PDAZ Farmers adopting improved agricultural Survey PCU non-timber forest months AM M&E technology products. system Adoption refers to a change of practice or change in use of a technology that was introduced or promoted by the project. Technology includes a change in practices compared to currently used practices or technologies (seed preparation, planting time, feeding schedule, feeding Page 38 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) ingredients, postharvest storage/ processing, etc.). If the project introduces or promotes a technology package in which the benefit depends on the application of the entire package (e.g., a combination of inputs such as a new variety and advice on agronomic practices such as soil preparation, changes in seeding time, fertilizer schedule, plant protection, etc.), this counts as one technology. Farmers are people engaged in farming of agricultural products or members of an agriculture related business (disaggregated by men and women) targeted by the project. Progress Every 6 reports/PDAZ Farmers adopting improved Survey PCU months AM M&E agricultural technology - Female system This indicator will measure Every 6 Progress Farmers provided with climate-resilient Survey PCU the number of farmers months reports/PDAZ crop varieties/seeds (Number) benefiting from improved AM M&E Page 39 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) crop varieties/seeds that system promote climate-resilient agricultural production. Productive infrastructure Deconcentrat involving community based ed offices of land, soil and/or water MA and Engineering reports with conservation works and Directorate of photographs and GPS Productive infrastructure completed and basic warehouses, input Every 6 statistics, referencing of sites; site PCU used by beneficiary community as a result supply stores and market months progress visits to ascertain of the project. facilities, which are reports, effective use. completed as a result of PDAZAM M&E the project and effectively system. used by beneficiary communities. Measurement in hectares of the total land area which has been protected or recovered through investments in productive community infrastructure Progress Area directly protected or recovered as supported by the project, Engineering reports and every 6 report/PDAZA result from investment of productive such as soil and/or water GPS referenced PCU months M M&E community infrastructure made by the conservation works and/or photographs monthly System project other protection works. “Land” is the terrestrial biologically productive system comprising soil, vegetation, and the associated ecological and hydrological processes. Agricultural policies affecting dryland Number of policies revised Yearly CPS & Adoption of actual CPS and deconcentrated enforced as a result of the project policy or newly adopted as a Directorate of policies office of the Ministry of Page 40 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) notes result of policy notes statistics agriculture and PCU produced with assistance from the project, which bear direct relevance for the drylands Number of households Number of households receiving benefitting from emergency support from the Project emergency support funded under the CERC. GRM reports Percentage of grievances and addressed over the total Monthly Survey PCU Grievances addressed Project M&E number of grievances system registered. ME IO Table SPACE Page 41 of 42 The World Bank Additional Financing-Mali Drylands Development Project (P177323) Annex 1: Map Page 42 of 42