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PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Report No.: AB1704 Project Name Region Sector Project ID Borrower(s) Implementing Agency Agricultural rehabilitation project AFRICA General agriculture, fishing and forestry sector (100%) P095251 REPUBLIC OF CONGO Ministry of Agriculture, Livestock and Fisheries BP 2453 Brazzaville Congo, Republic of Environment Category Date PID Prepared Estimated Date of Appraisal Authorization Estimated Date of Board Approval [ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined) June 8, 2005 March 10, 2006 May 30, 2006 1. Key development issues and rationale for Bank involvement 1. The Republic of the Congo is well endowed with natural resources including oil, forests, water and arable land. However during the 1990s the armed conflicts that ravaged the country’s productive infrastructure and social capital created precarious living conditions for the vast majority of the population, especially those in rural areas. Congo is the third largest oil exporter in Africa (after Nigeria and Angola); however, successive governments have mortgaged future oil revenues at relatively low prices in order to generate short-term revenues to finance the war effort. For many years, the lack of transparency and mismanagement of public resources resulted in the fact that only a very small portion of the population has benefited from oil revenues. Consequently poverty increased significantly among a larger segment of the population. Today, about 70 percent of the population, essentially women, youth, and rural people live below poverty line, compared to 30 percent at the beginning of the conflicts. 2. The high poverty level in the rural areas combined with an increasing rural-urban income gap, on the one hand, and the high degree of dependency of the national economy on oil and forestry products, on the other, suggest the need for further income and livelihood diversification. Since a significant share of the population resides in rural areas and depends on agriculture as a primary source of livelihood, the Congolese Government views agriculture as a key sector for increasing employment, incomes, and food security of the rural population and the urban poor, and for broad-based growth. 3. However, due to long-term neglect of the sector and years of violent conflicts, the sector faces several critical constraints. Key among these are (i) non-existent, war-torn, and/or poorly maintained roads and other rural infrastructure; (ii) use of rudimentary technologies and limited support from research and agricultural extension services; (iii) inefficient marketing systems due to high transaction costs and poor infrastructure and information systems; (iv) lack of access to credit, and (v) inappropriate and ineffective policies and legislation for sustainable development of the sector, including rural finance, private sector, marketing, quality and standards, and natural resource management. 4. In view of these issues, the government developed, in November 2003, its Stratégies du developpement agricole pour la periode 2004-2013 with the following objectives: (i) re-conquer the national food market to combat food insecurity, (b) reduce food imports and increase agricultural exports, (c) increase producers’ income and create jobs in rural areas; (d) stem rural-urban migration, and (d) promote the sustainable management of natural resources. 5. Realization of these objectives will require major efforts and resources. The financial resources and the implementation capacities required for achieving these objectives far exceed the resources locally available. The proposed project would significantly improve the country’s capacity to address some of the main constraints facing agricultural development. It would provide a solid foundation for improving and maintaining the competitiveness of the agricultural sector both internally and externally (i.e., agricultural exports). 6. The current TSS and the Agricultural Policy Note (APN) -under preparation for the Republic of the Congo are in line with the Government’s development objectives as outlined in its Agriculture Strategy. Revitalizing the rural sector has been identified in the TSS as one of the key priority areas for creating jobs through both economic growth and diversification. In addition, both the TSS and the APN recommend that the immediate priorities for revitalizing the rural sector center on the rehabilitation and maintenance of rural roads, as their poor condition is a major obstacle to the commercialization and hence to raising agricultural productivity and production. 2. Proposed objective(s) 7. The overall objective of the proposed project is to help increase the income, and to improve the living standards of the rural population by promoting strongly the diversification and growth of economic activities in rural areas. In order to achieve this objective, the proposed project will support the Government’s efforts in several priority areas identified in the rural development strategy, the APN and in the TSS. More specifically, the project aims to: (i) strengthen the Government’s capacity in sector management including programming, policy analysis, performance-enhancing regulations, and provision of other public goods necessary for sustained investment and growth in the agricultural sector.; (ii) rehabilitate the agricultural production capacity of producers by developing and disseminating productivity-enhancing technologies in crops, horticulture, fisheries, livestock, and agro-processing; (iii) improve producers’ access to markets through the rehabilitation and expansion of rural infrastructure; and (iv) developing tools for sustainable fisheries management. . 8. The development objectives would be monitored through the following key performance indicators (KPIs): (i) increased use by farmers of improved technologies including planting materials and other modern agricultural inputs (ii) increased production of targeted crops and fisheries (inland and marine), (iii) creation or expansion of one or two community-based conservation and sustainable use of biological diversity in marine and/or freshwater ecosystems, (iv) number and length of rehabilitated and newly constructed rural roads or inland waterways and other rural infrastructure; (v) increased income of farmers and fishermen in the project areas; and (iv) increased public and private sector service delivery 3. Preliminary description 9. The proposed project will be implemented over four years. The proposed project consists of the following four components: (i). Capacity-building for improved agricultural sector management: Activities undertaken will include: (a) formulating and implementing the regional agricultural development programs in order to exploit the comparative advantage of each targeted region of the country, (b) promoting the creation of producer organizations and support such organizations to take advantages of new economic opportunities in production, processing and/or marketing, (c) facilitating access to agricultural inputs and livestock and fisheries technologies and farmer advisory services, including technology development and dissemination, (d) supporting the establishment of a Private Sector Development Facility to mobilize private sector initiatives, including post harvest value adding initiative and promote supply chain development that will benefit smallholder farmers. (ii). Market-oriented diversification of production and market development and access: Activities will include (a) rehabilitating rural and feeder roads and waterways; (b) supporting the development of collection and storage centers for agricultural and fisheries products, (c) supporting the development of food conditioning and processing units, including fish processing technologies (d) developing and/or improving market infrastructure, including market infrastructure for small-scale fisheries; and (e) strengthening the operational capacity of the department responsible for agricultural marketing by upgrading the market information collection and dissemination systems, (d) establishing food safety standards and guidelines environmental protection, especially in the marine fisheries. (iii). Sustainable management of fisheries (GEF co-funding). Using the ecosystem approach that recognizes explicitly the interdependence between human well-being and the health of marine and freshwater ecosystems, and the need to maintain the productivity of fisheries, the activities will focus on developing the necessary tools for achieving the sustainable management of fisheries resources. These tools aim at (a) controlling the pollution and degradation of aquatic ecosystems, (b) minimizing waste and maintaining the reproductive capacity of the fisheries by controlling fishing capacity (input-based and output-based capacity), (c) eliminating or minimizing conflicts resulting from the multiple use of the marine ecosystems, (d) conserving critical coastal, marine and freshwater ecosystems, and (e) protecting endangered species. This component will develop four main tools for sustainable fisheries management: A regulatory framework: preparing implementation decrees of the Marine fisheries Law, and of the Freshwater Fisheries Law, and establishing an effective monitoring, control and surveillance system; Designing and implementing [co]-management plans for freshwater and marine fisheries; Designing and implementing a public-private (Government and oil industry) plan for the prevention of marine pollution; and Establishing or expanding one or two area(s) for conservation and sustainable use of biological diversity of coastal, marine and/or inland water ecosystems. (iv). Project coordination and M&E: Activities will include: (a) data collection/analysis and establishment of baseline against which project performance will be assessed, (b) preparation and implementation of annual work plans, (c) preparation of periodic progress and implementation reports, (d) monitoring and evaluation of project activities. 10. Institutional arrangements. A Program Steering Committee (PSC) will be created to direct the overall preparation and design of the project. The PSC will comprise representatives of the Ministry of Agriculture, Livestock and Fisheries (MAEP), Ministry of Forest Economies and the Environment (MEFE), Ministry of Equipment and Public Works (METP), Ministry of the Economy, Finance and Budget(MEFB)), Ministry of Naval Affairs, farmers and fishermen groups, and the private sector. A Project Management Unit (PMU) will be established in the MAEP and will be in charge of coordinating the implementation of the Project. 4. Safeguard policies that might apply 11. The proposed operation may trigger at least two safeguard policies: (i) Environmental Assessment (OP/BP 4.01) because of the potential adverse impacts of infrastructure development (i.e., rural roads, and other market infrastructure), and (ii) Pest Management (OP 4.09) because the intensification of agricultural production may lead to increased use of pesticides by farmers. The mismanagement and misuse of pesticides could result in adverse impacts on the floral, fauna, and land resources as well as occupational and public health hazards. 12. The project will therefore help the Recipient to conduct the studies necessary to determine the full potential social and environmental effects of the proposed investments in order to identify and implement the appropriate measures for mitigating these effects. At minimum, it is expected that the agricultural and infrastructure investments will take place in a framework that includes the following environmental stewardship measures: (b) improved soil and water conservation practices; (c) use of integrated approaches to pest management (IPM) and preparation and implementation of a pest management plan; (d) improved land husbandry practices that will help to reduce the pressure on ecologically more fragile areas as well as on deforestation. (e) Capacity strengthening of the implementing agencies for implementing and monitoring the recommended environmental and social mitigation measures. 5. Tentative financing Source: Global Environment Facility BORROWER/RECIPIENT INTERNATIONAL DEVELOPMENT ASSOCIATION Total 6. Contact point: Task Manager Siméon K. Ehui The World Bank 1818 H Street, NW Washington D.C. 20433 Telephone: 202 445 87767 Fax: 202 473 8229 For information on other project related documents contact: The InfoShop The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 458-5454 Fax: (202) 522-1500 Web: http:// www.worldbank.org/infoshop Implementing Agency Ms Jeanne Dambendzet Ministry of Agriculture, Livestock and Fisheries PO: 2453 Brazzaville Republic of Congo ($m.) 6.0 0 40 46