The World Bank Burkina Faso Agriculture Resilience and Competitiveness Project (P167945) Combined Project Information Documents / Integrated Safeguards Datasheet (PID/ISDS) Appraisal Stage | Date Prepared/Updated: 29-Jul-2019 | Report No: PIDISDSA26219 Apr 22, 2019 Page 1 of 27 The World Bank Burkina Faso Agriculture Resilience and Competitiveness Project (P167945) BASIC INFORMATION OPS_TABLE_BASIC_DATA A. Basic Project Data Country Project ID Project Name Parent Project ID (if any) Burkina Faso P167945 Burkina Faso Agriculture Resilience and Competitiveness Project Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) AFRICA 30-May-2019 30-Aug-2019 Agriculture and Food Financing Instrument Borrower(s) Implementing Agency Investment Project Financing MInistry of Economy and Ministry of Agriculture Finance and Irrigation Development Proposed Development Objective(s) The objective of the Project is to increase agricultural productivity and market access for small producers and small and medium agribusiness entrepreneurs for selected values chains in Project Areas. Components Enhancing Agriculture Productivity Improving Competitiviness and Fostering Market Access Promoting Private Sector-Led Agribusiness Development Project Coordination, Institutional Strengthening and Contigent Emergency Response Component PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 200.00 Total Financing 200.00 of which IBRD/IDA 200.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing Page 2 of 27 The World Bank Burkina Faso Agriculture Resilience and Competitiveness Project (P167945) International Development Association (IDA) 200.00 IDA Credit 200.00 Environmental Assessment Category A-Full Assessment Decision The review did authorize the team to appraise and negotiate Page 3 of 27 The World Bank Burkina Faso Agriculture Resilience and Competitiveness Project (P167945) A. Introduction and Context 1. Burkina Faso (274,000 km2) is a landlocked, low-income country with high demographic growth and poverty levels. With a Gross National Income (GNI) per capita of US$610 in 2017, Burkina Faso is amongst the 20 poorest countries in the world. The population of about 19.6 million (2017) is young (46 percent under 15), with high growth rate (3 percent) and the majority (70 percent) lives in rural areas. Poverty continues to be overwhelmingly concentrated in rural areas, which are home to 90 percent of the poor. The country was ranked 185 out of 188 countries on the 2015 overall UN Human Development Index (HDI). Non-income indicators of poverty and welfare, particularly in the areas of education and health, are among the lowest in the world, and most of the Sustainable Development Goals (SDGs) appear out of reach. 2. Economic performance has been relatively strong in the past decade; but growth has levelled off recently . Over the past fifteen years, economic growth has averaged about 5.5 percent per year (IMF, 2018). Burkina Faso’s economy is still heavily reliant on agriculture (especially cotton) and mining (especially gold), which contribute the bulk of its export revenues. The recent fluctuation in gold and cotton prices, combined with drops in grain production and political instability, have contributed to the slowdown in economic growth. The country has made progress in implementing structural reforms, sound economic policies, increased cotton and mining production, steady investments, and a stable macroeconomic environment. Monetary and exchange rate policy has been well-managed, and inflation has been kept at a low level (less than 3 percent over the past decade and 0.4 percent in 2017). Burkina Faso has a relatively healthy banking sector. The country is also working toward an integrated and open regional economic space through the West African Economic and Monetary Union (WAEMU), the Economic Community of West African States (ECOWAS), and other African cooperation initiatives notably the Africa Food Security Leadership Dialogue on Adapting African Agriculture to Climate Change in support of the Comprehensive African Agriculture Development Program (CAADP) Food Security Commitment. In 2017, the country was ranked 74 in the world, one of the best rankings in Sub-Saharan Africa, according to the Corruption Perception Index. 3. The country faces many socio-political and security challenges which have impeded a full economic recovery; the harsh climate and environment degradation are making these challenges even more acute. Burkina Faso has recently experienced internal unrest fueled by the unequal distribution of resources and a perceived lack of accountability in the management of public resources. This situation has been exacerbated by insecurity in neighboring Mali, and the Sahel region in general. Burkina Faso hosts more than 25,000 Malian refugees. The security situation has worsened significantly since June 2018 due to an upsurge in violent attacks by terrorists and criminal groups in the Eastern and Northern regions. If not addressed adequately, security challenges are expected to continue to impact the country's socioeconomic prospects in the years to come. The harsh climatic conditions which hinder efforts to reduce vulnerability and extreme poverty are compounding the security challenges. 4. To confront these challenges, the Government is implementing the National Program for Economic and Social Development (Plan National de Développement Economique et Social – PNDES). The PNDES lays out the Government’s vision and action plan for the period 2016-2020. It emphasizes the structural transformation of the economy with agriculture playing the key role as a driver of growth. Its priority interventions are to increase productivity, improve the management of water resources for agriculture, develop market infrastructure and support institutional transformation. It also highlights the challenges related to climate change and the degradation of soils, with the objective to support a transition towards a green economy and the sustainable management of natural resources. Page 4 of 27 The World Bank Burkina Faso Agriculture Resilience and Competitiveness Project (P167945) B. Sectoral and Institutional Context 5. Burkina Faso’s agriculture sector is still one of the main pillars of the national economy, although its contribution to the Gross Domestic Product (GDP) has decreased recently. Farming and livestock activities still occupy about 86 percent of Burkina Faso’s workforce and constitute the main source of income for the poorest populations. The sector’s contribution to GDP, however, has declined from 35 percent in 1999 to 32.6 percent in 2013 (FAOSTAT, 2014), due to the diversification of the economy into areas such as mining. Most crops including cereals (millet, sorghum, maize and other cereals including coarse/feed grains), and commercial crops (mainly cotton), as well as legumes (cowpeas, groundnuts) are produced under rainfed conditions with low yields, with high vulnerability to climate change. As part of the traditional Sahelian parkland landscape, those crops often are produced in systems that also include useful trees, such as shea, baobab, locust-bean trees and others. Other crops, including rice, onions, tomatoes, and other horticultural crops, are cultivated under full irrigated (full water control) or semi-irrigated (bottomland) conditions. The yields of irrigated crops are also still below potential. An extended household may farm around 9.6 hectares (24 acres) in total, but plot sizes are small, with each plot averaging only 0.4 hectares, producing mostly for household consumption with little marketable surplus1. The production of food/ feed grains, of which by- products are used for animal feeding (e.g., shredded millet/corn stalks), is common and remains the customary crop- livestock mixed production model. 6. Agriculture faces difficult agro-ecological conditions which are getting harsher due to climate change and increasing human pressure, leading to a situation where vulnerability and food insecurity remain key issues. Along the Southern edge of the Sahelian band, the country faces the arid to semi-arid climate typical of the region. The rainfall is low overall (400 mm per year average in the Sahelian zone and 800-1000 mm in the Sudano-Sahelian zone), irregular and poorly distributed; and it is experiencing a downward trend. Some estimates indicate that more than 3.5 million people, roughly 20 percent of the population, are food insecure and/or suffer from inadequate nutrition. Like in much of the Sahel region, the increase of the population is both an asset and a challenge for agriculture, as demand for food increases and the needs for proper nutrition and food security must be addressed. The country’s rural areas are experiencing changes in land occupation patterns, with many former pastoralists becoming sedentary farmers and growing crops but also retaining roaming livestock herds. Therefore, pressure on land has increased, and there are increasing conflicts between pastoralists and farmers. As a result, improved land management practices are increasingly required to secure land tenure, to optimize crop yields and to conserve land as a viable resource for the long run, including maintaining the carbon sequestered in the soil and landscape. 7. The transport sector in Burkina Faso suffers from numerous constraints which hinder economic development, reducing the competitiveness of the tradable sectors of the economy including agriculture production. The state of transport infrastructure is poor, and the provision of transport services, hampered by road blocks and poor management, remains inefficient. The rural roads network is not sufficiently dense to permit access to all potential agriculture production areas. Key production areas remain enclaved, especially since many roads are not passable by regular vehicles during the rainy season. This is a major constraint to both providing the required production inputs at farm-gate and accessing market outlets to dispose of marketable production. 8. Burkina Faso has substantial assets to develop its agriculture, both on the supply and demand side: i. On the supply side: (i) substantial land and agro-ecological potential, yet unexploited, offers opportunities to develop diversified agriculture systems; the country is endowed with 9 million ha of farmland, of which less than one-half (46 percent) is currently under cultivation; (ii) traditional know-how and good experience of producers in certain production systems (flood recession cultivation, livestock fattening, poultry production, collection of agroforestry Page 5 of 27 The World Bank Burkina Faso Agriculture Resilience and Competitiveness Project (P167945) products) and existence of many technological packages ready to be disseminated and applied; and (iii) substantial potential for irrigated farming using ponds and rivers, as well as underground water; and ii. On the demand side, agriculture development is spurred by: (i) a sizable and increasing domestic demand for food, particularly processed food, in tune with the nutrition needs of a rapidly increasing population overall, and with changing consumer preferences shifting towards greater diversification of diets and more value being attributed to convenience and quality; and (ii) the increasing demand for key export commodities (horticultural crops, shea nuts, cattle/meat) on regional and international markets. 9. To transform its agriculture, Burkina Faso needs to address key constraints: a. Regulatory and institutional constraints: the legal texts governing the sector’s regulatory framework are not always adequate, and those existing are often insufficiently used or enforced2, and the means and capacity of intervention of the State services are limited, including planning and programming, statistical services, monitoring and evaluation, and information systems; b. Weakness of extension services: there are limited agriculture extension and outreach services to disseminate innovations, with consequent low expertise of producers and other operators in the value chains; c. Limited access to irrigation water resources and improved inputs: There is insufficient access to irrigation water resources (both through gravity and pumping) and improved inputs (fertilizers, phytosanitary inputs, mechanized implements, feed supplies, certified seeds, etc.); d. Poor management of natural resources: both climate change and anthropic pressure are leading to widespread land degradation. About 170,000 hectares per year of natural vegetation are lost because of land degradation and deforestation. At the current pace, Burkina Faso will lose approximately 15 percent of its agricultural land within 10 years; e. Limited competitiveness and weak connection to markets: poor public infrastructure, and insufficient private investment for production, processing, storage, transport and marketing, as well as the low valorization of by-products, insufficient market information and capacity to adhere to commercial norms and standards, and the low degree of organization of sector actors, all contribute to marketing inefficiencies; and f. Limited access to financing: commercial banks and micro-finance institutions, are reluctant to lend to agriculture given the high level of risk involved in the sector. 10. Despite a large potential, irrigation remains underdeveloped and underexploited; tapping irrigation water resources is crucial to improve agricultural performance. Despite low and erratic rainfall, Burkina Faso enjoys relatively abundant water resources, with current agricultural withdrawals for irrigation representing a fraction of total renewable water resources and annual recharge. Irrigation development, in the context of erratic weather conditions currently amplified by climate change, has the potential to increase the resilience and productivity of the agriculture sector. Moving from rainfed crops to irrigated crops, as possibly feasible, is the strategy emphasized by PNDES for the agriculture sector. The irrigation sector in Burkina Faso, like in most Sahelian countries has experienced different stages of development. Following the limited success of the large-scale public irrigation schemes in the 1980s, institutional reforms refocused the role of public irrigation companies on irrigation development, with partial management transfer to water users’ associations. This has required that the management (operation and maintenance) of the irrigation 1 https://www.nationsencyclopedia.com/economies/Africa/Burkina-Faso-AGRICULTURE.html 2 This is the case of the recently enacted Agriculture Investment Code (2018). Page 6 of 27 The World Bank Burkina Faso Agriculture Resilience and Competitiveness Project (P167945) systems be carried out by institutions equipped with the necessary technical/ managerial capacity, with enough autonomy and flexibility, and with accountability to both the Government and users. In this respect, the project will provide support to Water User Associations (WUAs) so that they play an effective role in water management. 11. There is large untapped potential for the development of Burkina Faso´s agro-industrial sector; but currently the country’s agro-processing base is weak. Only about 12 percent of agriculture commodities are processed before being sold on the market3. Many bottlenecks in the various value chains limit value addition, such as lack of conditioning or processing units. Linkages between farmers and downstream industrial and market operators are weak. Despite these constraints, agri-food systems are quickly changing in Burkina Faso like many other Sub-Saharan Africa countries, in response to changing demographic patterns coupled with economic growth. Fast-increasing population, urbanization trends and income growth are changing food demand in unprecedented ways, with large increases in total quantities demanded, growing preference for convenience, diversification of diets towards more fresh products, and an increased demand for product quality4. Food demand is growing particularly for items that are more processed, increasingly purchased on the market (instead of grown for self-consumption) and perishable (i.e., meat, dairy and fresh produce). A small but growing middle class already spends a significant fraction of its income on processed food. Demand for processed foods is thus expected to grow in Burkina Faso and neighboring countries, leading to sizable market opportunities for increased value addition through agro-processing. 12. The weak enabling environment and limited access to commercial credit are major constraints for agriculture and agribusiness development. The 2017 World Bank Group Enabling the Business of Agriculture (EBA) report shows that Burkina Faso’s regulatory framework is impeding private investment in agriculture and agribusiness, all along the value chain. Significant weaknesses have been identified in regulations related to seed, fertilizer, agricultural machinery, water and market access. Public services, as well as professional organizations, need to be strengthened to address these weaknesses. Regarding credit, the agriculture sector receives only eight percent of commercial bank lending (of which 4.2 percent is for financing cotton) and fifteen percent of lending by Micro-Finance Institutions (MFIs). Access to finance by smallholder farmers is constrained by the following factors: low degree of organization of the value chains (except cotton), lack of bankable projects, limited exposure to financial entities, and lack of acceptable collateral. In addition, there are very few financial products whose terms and conditions would be adapted to the seasonal production cycles. Credit is mainly earmarked for production and trading of agricultural products, but very limited for agro-processing activities. The fact that agriculture is exposed to significant weather shocks increases the volatility of revenues and the risk due to drought, and hence the attendant risk faced by banks. The development of irrigation under the project, with provision of irrigation water year-round, will lessen this risk. This is important in the context of Burkina Faso where the use of suitable risk management instruments is lacking. 13. Agriculture institutions exhibit major weaknesses. The primary institution in charge of crop production and irrigation development in Burkina Faso is the Ministry of Agriculture and Rural Hydraulics (MAAH). MAAH carries out its operations through five core directorates dedicated to irrigation (Direction Générale des Aménagements of Hydo- Agricoles et du Development de l ’Irrigation - DGAHDI), agricultural extension (DGPV), rural economy and sanitary & phyto-sanitary control (DGPER), land tenure and producer organizations (DGFOMR), and Monitoring & Evaluation and statistics (DGESS). MAAH field operations are implemented through a network of decentralized branches including regional and provincial directorates, and regional technical support units. MAAH’s other decentralized institutions of 3 The PNDES target for processing of agricultural products is 25 percent. An example of a product which is insufficiently processed is shea nut: 70 percent of the shea fruits are exported unprocessed. The loss of added value is estimated at US$100 million per year. 4 ‘West African Food Systems and Changing Consumer Demands’ J. Staatz and F. Hollinger. West African Papers No. 4. OECD and FAO, 2016. Page 7 of 27 The World Bank Burkina Faso Agriculture Resilience and Competitiveness Project (P167945) MAAH include seed production units, rural promotion centers, and regional laboratories for seed quality control. The following other ministries share responsibilities for agriculture in different areas: (i) the Ministry of Infrastructure (MI) for rural roads and tracks, (ii) the Ministry of Environment, Green Economy and Climate Change (MEEVCC) for environmental matters, including management of non-timber forest products and productive parklands such as shea parks, and (iii) the Ministry of Commerce, Industry and Handicrafts for the promotion of Small and Medium Enterprises (SMEs), agro-processing and trade. There are other specialized semi-autonomous structures attached to MAAH with responsibility for specific interventions, as well as several private, consular or non-profit institutions active in agriculture such as the network of chambers of agriculture (Reseau des Chambres Agricoles - RECA) which provides general support to its private membership, the Maison de l’Entreprise which supports SMEs. The above institutions represent a fairly comprehensive set-up with good potential as framework to support agriculture development. However, as a general rule, most of these institutions display major weaknesses which prevent them from being fully effective, including insufficiently skilled staff and weak managerial and technical capabilities. This situation is compounded by limited operating budgets and/ or insufficient financial support from stakeholders and membership, lack of office and technical equipment, poor working conditions including office buildings which need renovation or upgrade. 14. Gender gaps persist in Burkina Faso, particularly in farming activities. In the 2016 Human Development Report, the country ranked 146th out of 149 countries in gender inequality owing to gender disparities in a number of socio- economic aspects. Female-headed households have 14 percent lower per capita food consumption and are more food insecure than male-headed households.5 Women's access to agricultural extension services, credit and productive resources such as agricultural inputs and equipment remains limited. Agriculture plots managed by women produce less per hectare than plots managed by men. The primary factors that contribute to the gender productivity gap in agriculture in Burkina Faso are essentially three fold: (i) women face constraints because of their duties in two economic spheres: the productive and the reproductive tasks in the household; (ii) women have limited access to farm labor, particularly male farm labor; and (iii) their productivity is limited by weak access to credit for agricultural inputs, improved farming equipment and labor. 15. Youth unemployment is acute; it undermines the political and economic stability of the country. Rural youth (18 to 35 years) face challenges similar to those faced by women producers. They are mostly un-educated and lack professional qualifications. Their low social status and the difficulties they encounter to access economic resources limit their participation in productive activities. In Burkina Faso, 68 percent of the population is under 24 years of age6. The problem of youth unemployment is severe: in 2014, 25.2 percent of youth were unemployed7. Given the lack of job opportunities, particularly in rural areas, youth unemployment threatens to undermine the country’s political stability, particularly within the present context of the influence of religious and other forms of extremism8. Hence, to avoid the instability and violence currently experienced by Burkina Faso, the focus should be on providing economic opportunities for young people. The focus on youth requires a gender perspective to develop effective and well targeted programs. Unless young women receive adequate training and have prospects of steady employment, the possibility of higher birth rates will undermine the country’s economic gains. Similarly, technical training and the creation of viable jobs for young men, in the agriculture sector particularly, is a precondition for sustainable development and peace. Ensuring that Burkina Faso’s youth are directly empowered with income earning activities, have access to education and training opportunities, and a voice in local decision-making is critical for the country’s stability and sustainable development. 5 ‘Burkina Faso: Poverty, Vulnerability, and Income’, WB June 2016 6 Index Mundi, Burkina Faso, Demographic Data, 2018. 7 ILOSTAT, Share of Youth ‘Not in Employment, Education or Training’ (NEET), 2014. 8 ‘Youth unemployment and political instability in selected developing countries ’, Therese F. Azeng & Thierry U. Yogo, Working Paper No. 171, African Development Bank, May 2013. Page 8 of 27 The World Bank Burkina Faso Agriculture Resilience and Competitiveness Project (P167945) C. Proposed Development Objective(s) 16. The PDO is to increase agricultural productivity and market access for small producers and Small and Medium agribusiness Entrepreneurs (SMEs)9 for selected value chains in project areas. PDO Level Indicators 17. Key Performance Indicators (KPIs) include: (i) Increase in yield of targeted crop achieved by primary project beneficiaries (disaggregated by commodities); and (ii) Increase in the volume of market sales of targeted crop commodities produced by primary project beneficiaries (disaggregated by commodities). 18. In addition, the project M&E system will measure the following four Core Results Indicators (CRIs): (i) Number of farmers reached with project agricultural assets or services (including women and youth targeted at 30 percent); (ii) Beneficiary satisfaction rate with the quality of project-supported services (disaggregated by gender and age); (iii) Area provided with new/improved irrigation or drainage services; and (iv) Number of km of roads and tracks constructed or rehabilitated. a) D. Project Description 19. The proposed project with a total cost of US$259.6 million will be structured as an Investment Project Financing (IPF) implemented over a period of six years. It will be funded by (i) two IDA credits for a total amount of US$200 million - a regular IDA credit of US$50 million and a Scale Up Facility (SUF) of US$150 million, (ii) a GoBF contribution of US$13.0 million, (iii) beneficiary contributions for US$29.4 million, and (iv) Partner Financial Institutions (PFIs) credit of US$17.2 million. The project has three technical components structured around three core activity clusters: raising productivity in irrigated production systems; improving competitiveness and linking farmers to markets; and promoting private sector-led agribusiness development. A fourth component will cover project coordination activities capacity strengthening as well as establishment of a Contingent Emergency Response Component (CERC). COMPONENT 1 – ENHANCING AGRICULTURE PRODUCTIVITY (US$108.9 million of which US$97.2 million IDA and US$11.7 million GoBF) 20. Component 1 aims to remove constraints to farm productivity, mainly in irrigated production systems. It will have three sub-components: (i) irrigation development, including attendant land-tenure arrangements and support to the input supply chain; (ii) agriculture advisory services; and (iii) support to producer groups. The project will mainstream gender and youth dimensions in all its activities, giving them preferential treatment particularly in project-provided agriculture training and services, as well as funding 9Agribusiness entrepreneurs are defined as economic operators intervening both at production level as well as downstream of production, i.e. post-harvest, storage, processing and marketing including input suppliers and service providers. Page 9 of 27 The World Bank Burkina Faso Agriculture Resilience and Competitiveness Project (P167945) of investment initiatives. This will be achieved by targeting economic activities in which women and youth predominate. 21. Sub-Component 1.1: Irrigation infrastructure and land tenure (US$86.7 million of which US$75.0 million IDA and US$11.7 million GoBF). Sub-Component 1.1 aims at supporting productive land development by increasing the provision of irrigation water and securing land tenure on project sites. Irrigation infrastructure will focus on both rehabilitation and development of irrigated perimeters. Emphasis will be placed on climate-proof design and construction to ensure efficiency and climate resilience. Sub Component (SC)1.1 will be implemented in close liaison with the Bank-financed PARIIS project (FY17). 22. Irrigation development and rehabilitation. This activity will consist in rehabilitating and developing the irrigation and drainage infrastructure on five selected sites the project area (see annex 2, appendix 1), and supporting the attendant collective institutional and organization arrangements. Irrigation infrastructure works will cover a total of 4,497 ha over five collective irrigation schemes to be either fully developed (2,947 ha) or upgraded/ rehabilitated (1,550 ha), for both smallholders and agriculture entrepreneurs10. The project will not finance activities related to construction and/or rehabilitation of dams. 23. Land tenure. The project will support arrangements to ensure proper rights to cultivate for farmers benefiting from irrigated land allocation, and due compensation (to be funded by the GoBF) for those who will lose their lands or income losses in the process of land reallocation. It will support MAAH’s dedicated land tenure services (DGFOMR) at the central level and in the seven communes adjacent to the project irrigated perimeters. Secure land tenure will also incentivize the adoption of new technology to increase productivity and climate-smart practices to provide adaptation and mitigation co-benefits. 24. Sub-Component (SC) 1.2: Agriculture advisory services (US$4.1 million IDA). Sub-Component 1.2 aims to improve the delivery of advisory and outreach services, with a focus on extension activities regarding more productive and sustainable agricultural practices under irrigation conditions. This will be achieved by providing catalytic support towards strengthening the capacity of MAAH’s services (Directorate General for Agricultural Extension, DGPV) and other relevant institutions dedicated to delivering demand-driven agri-food-oriented extension and outreach services. In doing so, the project will scale up results achieved by the WAAPP project to enable a wider adoption of Good Agriculture Practices (GAPs). This Sub-Component will provide funding for the following activities inter alia: (i) preparation of specialized extension guides and provision of training regarding different Good Agriculture Practices GAP), e.g., the use of the Farmer Field School (FFS) approach, Climate Smart Agriculture (CSA) techniques (including bio-compost), Integrated Pest Management (IPM), System of Rice Intensification (SRI) and/or gender-oriented practices; (ii) capacity building and dissemination of the related knowledge regarding production and certification of improved seeds and planting material; (iii) development of an e-extension platform, using digital solutions and applications to modernize and increase the outreach of advisory services; (iv) training for DGPV staff through participation in specialized forums, provision of scholarships for diploma courses in selected fields, organization of exchange trips, etc. SC1.2 will also finance investments to support extension services such as office rehabilitation and equipment (including computer equipment), technical equipment and vehicles for DGPV and its communal offices in the project 10 Smallholders will be allocated plots of 0.5 or 1.0 ha each for a total of 3,497 ha, and agricultural entrepreneurs tracks of land of at least 10 to a maximum of 50 ha each for a total of 1000 ha. NB. The project will also develop, in the form of individual investment sub- projects under Component 3 private sites intended for arboriculture, for a total of 1,000 ha under small irrigation systems (pumping, Californian, drip, and solar powered irrigation systems that reduce energy use, etc.) Page 10 of 27 The World Bank Burkina Faso Agriculture Resilience and Competitiveness Project (P167945) areas. 25. Sub-Component (SC) 1.3: Support to producer organizations and input supply (US$18.1 million IDA). Sub-Component 1.3 has a two-pronged objective: (i) to strengthen and/or facilitate the creation of Agricultural Producer Organizations (OPAs), including economic interest groups, and cooperative societies of different types, and (ii) to facilitate the supply of inputs required for targeted crops. Objective (i) will be achieved through MAAH’s dedicated services (DGFOMR)11, as well as the assistance of specialized non- government organizations (NGOs) or service providers. SC1.3 will place special emphasis on developing Water Users Associations (WUAs) to strengthen water management. Strengthened institutional and organizational arrangements will allow farmers to have greater participation in decisions, leading to more sustainable water use and more equitable sharing of the benefits. This will also contribute to enhance resilience through promoting a stronger sense of ownership, and greater efficiency and accountability, in water use and land development. Under objective (ii), input supply to farmers will include the provision of the required means of production to develop cropping systems on irrigated land. This will follow the technical guidance of extension services received under Sub-Component 1.2. The project will make available to smallholder farmers the package of inputs, improved seeds and small implements through the current national programs for a period of two years under the same subsidy conditions as those granted under these programs. COMPONENT 2 – IMPROVING COMPETITIVENESS AND FOSTERING MARKET ACCESS (US$34.6 million of which US$33.7 million IDA and US$0.9 million GoBF) 26. Component 2 aims to improve competitiveness and foster access to markets through three sub- components aimed at (i) capacity building of MAAH central directorates regarding sanitary and phyto- sanitary control, development of quality norms and standards, and support to market knowledge; (ii) the provision of marketing facilities; and (iii) construction/ rehabilitation of rural road infrastructure. 27. Sub-Component (SC) 2.1: Sanitary and phyto-sanitary control, development of quality norms and standards, and support to market knowledge (US$5.2 million IDA). Sub Component 2.1 will focus, firstly, with regard to sanitary and phyto-sanitary control, on the regulatory framework to ensure that appropriate food safety regulations and means are in place to enable the country to serve the needs of the agriculture domestic and export markets. To that end, it will provide support to MAAH’s dedicated services (DGPV), including its decentralized phyto-sanitary control posts in the project area. Capacity building will focus on specialized areas such as food safety analysis and control. The project will also provide funding for logistical support and equipment of the Laboratory for Agri-food Analysis (LAPA) (e.g. for control of aflatoxin in maize, pesticide content in agricultural products, herbicide control, etc.) and for the rehabilitation of the two regional laboratories for seed control in the project area. Concerning the shea sector, the project will support the Institute for Research in Applied Science and Technology (IRSAT) for the definition of semi-industrial technological packages to reduce energy (fuelwood) consumption. Secondly, with regard to the promotion of the quality of agricultural products, the project will focus on the technical norms and trading labels so that they conform to international standards (HACCP, ISO and others). To this end, it will provide training and technical assistance to MAAH’s dedicated services (DGPER). For the shea butter value chain, the support will aim at developing a national standard of production to ensure quality consistency along the chain. Thirdly, in terms of market knowledge, the 11Regarding the shea nut value chain and other carbon-related activities, support to producer organizations (TFK) and biodigester compost suppliers will be done through the dedicated services of the Ministry of Environment, Green Economy and Climate Change (DGEVCC) Page 11 of 27 The World Bank Burkina Faso Agriculture Resilience and Competitiveness Project (P167945) project will finance the collection of market information regarding the project-supported commodities. It will support the strengthening of MAAH’s Agricultural Market Information System (SIMA), including data collection on specific targeted markets. Information and awareness workshops on SIMA will be organized throughout the project area, including radio broadcasts, so that potential users are aware of SIMA existence and know how to access it. MAAH’s dedicated services (DGPER), as well as the Network of Chambers of Agriculture (RECA) will be supported so that they can contribute to SIMA data collection and diffusion efforts. 28. Sub-Component (SC)2.2: Marketing infrastructure (US$7.2 million IDA). SC2.2 aims to strengthen the link between producers, off-takers and processors to ease access to market outlets. The project will support marketing and storage infrastructure, essentially the construction/ rehabilitation of sixteen purchasing counters (PCs), as well as 117 small storage facilities in strategic areas in the four regions covered by the project. PCs are marketing platforms, the purpose of which is to avoid direct field purchases from farmers and reduce asymmetric information that expose producers to buyer pressures. PCs will meet the required criteria of relevance, viability, cost-effectiveness, as well as job creation, especially for women and youth. Attention will be paid to the management and maintenance of these counters in collaboration with the end-users and local authorities (see Annex 2, Appendix 3). 29. Sub-Component (SC)2.3: Rural tracks and roads (US$22.2 million of which US$21.3 million IDA and US$0.9 million GoBF). SC2.3 aims to reinforce the connection of producing areas targeted by the project with the supply sources for productive inputs and market outlets for commodities produced. It will include the construction and rehabilitation of rural roads and tracks to ensure all-weather access throughout the year to all the project-targeted irrigated areas. A total length of about 344 km of tracks and road sections have been selected in concert between MAAH and the Ministry of Infrastructure (MI). SC2.3 will finance the technical, socio-economic and environmental studies, road works, as well as maintenance over a period of two years. The implementation of SC2.3 will be carried out under MI’s supervision through its Directorate General of Rural Tracks (DGPR). The execution of road works will be entrusted to private civil engineering companies, and/ or projects as part of their interventions in the producing areas targeted. Attention will be paid to the planning and maintenance of tracks and roads using national norms. SC2.3 will provide technical assistance and training to DGPR, its decentralized structures and local communities involved in the project area as required to oversee the construction and maintenance of the project rural roads and tracks. COMPONENT 3: PROMOTING PRIVATE SECTOR-LED AGRIBUSINESS DEVELOPMENT (US$89.5 million of which US$42.9 million IDA, US$29.4 million beneficiaries and US$17.2 million PFIs) 30. Private sector development is the major thrust of the project strategy for developing value chain activities. Accordingly, Component 3’s objective is to enable the country’s private agriculture and agro- processing sector to become more competitive on domestic and external markets, by helping producers, processors and off-takers/ traders develop and finance their investment initiatives. Component 3’s activities will have a two-pronged focus on: (i) the development of business plans; and (ii) the provision of investment financing under the project’s Cost-Sharing Facility (CSF) for project-supported crop production, value addition and commercialization. 31. Sub-Component (SC)3.1: Development of business plans (US$4.5 million IDA). The objective of this sub-component is to support eligible beneficiaries in developing business plans which can be eligible for funding under the project Cost Sharing Facility (CSF). It will assist eligible value chain operators to (i) identify potential investment activities aligned with the project’s objectives, (ii) select potential partners Page 12 of 27 The World Bank Burkina Faso Agriculture Resilience and Competitiveness Project (P167945) with whom they can establish partnerships; and (iii) develop viable business plans to secure access to project funding; these business plans will include the required specifications to conform to the eligibility criteria for the CSF, including the fiduciary and safeguards aspects. The above support will be provided through technical assistance (TA). The TA providers terms of reference will include organization of sensitization campaigns to inform potentially interested operators, support for the development of investment sub-projects eligible for CSF funding, training as needed and assistance for the beneficiaries’ selection process and subsequent implementation of the selected sub-projects. 32. Sub-Component (SC)3.2: Private investment financing (US$85.0 million of which US$38.4 million IDA, US$29.4 million beneficiaries and US$17.2 million PFIs). This sub-component will address the financing constraints of the agribusiness sector by improving access to finance. It will fund a Cost Sharing Facility (CSF) to provide partial support to agriculture and agri-business operators in the form of Matching Grants (MGs) to finance their investment Sub-Projects (SPs). The MG mechanism will target (i) individual smallholder producers, Agriculture Producer Organizations (OPAs), cooperatives, and Small and Medium Enterprises (SMEs) that need financing to create, upgrade and/ or modernize their production, storage and processing facilities, as well as (ii) all other private sector players and entrepreneurs involved in the targeted agriculture value chain (e.g. traders, transporters, equipment manufacturers, service providers, compost providers) with similar needs. MGs will be provided under two windows, for micro and medium/ large sub-projects respectively, under different terms and conditions with the MG representing between 30 to 80 percent of eligible costs. PFIs will provide a minimum of 15 to 35 percent of sub-project funding, except for micro sub-projects which will not require supplementary PFI funding. In partnership with the DGEVCC, all MG proposals will be assessed through an ex-ante calculation on the carbon impact and the most effective projects may be supported to access carbon finance12. Women and youth (18 to 35 years)13, will receive special treatment, especially as regard their very small and/ or start-up enterprises; their personal contribution requirement to the funding of sub-projects will be lower than for their male and adult counterparts. The initial permanent working capital requirements will be eligible for MG funding. The funds will be disbursed directly on behalf of the beneficiary from the project account to a dedicated account for SP implementation opened with the PFI. The beneficiary will have the fiduciary responsibility regarding the use of the funds. The eligibility and selection criteria of the beneficiaries, as well as procedures to be followed all along the investment cycle, will be detailed in the specific project implementation manual (PIM) of the CSF. Goods to be funded under sub grants will be procured in accordance with the provisions of Financing Agreement, the PIM, the Procurement Guidelines and the Anti-Corruption Guidelines, and should not include any expenditures on the negative list set forth in the ESMF or the IPMP. COMPONENT 4: PROJECT COORDINATION, INSTITUTIONAL CAPACITY STRENGTHENING AND CONTINGENT EMERGENCY RESPONSE COMPONENT (CERC) (US$26.6 million of which US26.2 million IDA and US$0.4 million, GoBF) 33. Component 4 will (i) support project coordination and institutional strengthening of MAAH; and (ii) include a CERC. 34. Sub-Component (SC)4.1: Project coordination and institutional capacity strengthening (US$26.6 12 DGEVCC in currently working on carbon projects regarding (i) soil carbon increase through the use of agroforestry technics and bio- compost (from biodigesters) and (ii) the decarbonization of the shea butter production chain. This is part of the collaboration with the REDD+ Program (P149827) and Biodigester carbon project (P156413). 13 The MG target for women and youth is 30 percent. Page 13 of 27 The World Bank Burkina Faso Agriculture Resilience and Competitiveness Project (P167945) million of which US26.2 million IDA and US$0.4 million GoBF). The Project will be managed by a Project Management Unit (PMU), housed within the Coordinating Unit of the Budget Program for Hydro- Agriculture and Irrigation Development which is one of the six MAAH budget programs. Hence, the PMU will be integrated into the MAAH administrative structure as part of the sector-wide approach recently adopted by the Government under the budget programs. SC4.1 will fund (i) the establishment and operation of the PMU through provision of appropriate staffing and operating resources to take charge of project management including resources for fiduciary management, safeguard compliance, Monitoring and Evaluation (M&E), knowledge management and communications, and (ii) institutional capacity strengthening (training, equipment, office rehabilitation, etc.) for the key MAAH directorates and services, including their decentralized services, and the National Council for Food Security (NCFS); this will also include construction of an office building to host all projects under the Budget Program for Hydro- Agriculture and Irrigation Development. To promote consultations at the grassroots, the sub-component will also fund a full set of Citizen Engagement activities. The general intervention principle under SC4.1 will be to harmonize and/or pool resources with other similar externally-funded projects. In this respect, the PMU may share staff and operating resources with other units whenever possible to economize resources and take advantage of economies of scale14. 35. Sub-Component (SC)4.2: Contingent Emergency Response Component (CERC) (US$0.0 million). Component 4 includes the creation of a project CERC under the oversight of the NCFS at MAAH. The CERC will be a mechanism to provide funding for emergencies. It will have a zero initial funding allocation. In the event of a crisis, the Government will be able to request the World Bank to reallocate project funds to the CERC to cover the costs of the emergency response and recovery. Detailed operational guidelines acceptable to the World Bank for implementing the project CERC activities will be prepared during the first six months of project implementation. All expenditures under the project’s specific CERC will be in accordance with World Bank OP 10 (Investment Project Financing). They will be appraised and reviewed in order to be acceptable to the World Bank before any disbursement is made. Disbursements will be made against an approved list of goods, works and services, required to support crisis mitigation, response, recovery and re-construction. Project Beneficiaries 36. The project is expected to benefit directly and indirectly all economic agents in the project areas operating along the targeted value chains from production to market, including at the processing, storage, transport and trading stages. The total number of project beneficiaries is estimated in the order of 150,000 individuals (see Annex 2, Appendix 4). 37. Direct project beneficiaries are first and foremost all the smallholder crop farmers, processors, traders and marketers who will be involved in project-supported activities at farm-gate level and downstream of production. These include prominently the smallholders and entrepreneurs who will benefit from irrigation development, extension and subsidy for the new technology packages, and the project matching grants as part of project financing windows. Other direct beneficiaries will include: (i) the staff of MAAH agricultural extension support services and other services directly targeted by project activities who will receive technical support and training, and (ii) the off-takers and transporters who will 14A collaboration with DGEVCC is expected for the screening of the carbon impact of the matching grants as well as the valorization of the project activities on the carbon market whenever they fit under one of the existing or future carbon projects developed in the country. Page 14 of 27 The World Bank Burkina Faso Agriculture Resilience and Competitiveness Project (P167945) use the purchasing counters, and tracks and roads. The project will mainstream gender and youth dimensions in all its activities, giving them preferential treatment particularly in project-provided agriculture training and services, as well as funding of investment initiatives. This will be achieved by targeting economic activities in which women and youth predominate. These include small-scale agro- processing activities such as mango drying, and activities in value chains dominated by women such as shea nut collection and processing. Youth will be targeted for any project activities focused on training to upgrade their skills, and activities generating jobs such as high labor intensity methods. 38. Indirect project beneficiaries include all stakeholders who will benefit from project spillover effects both at national and local level, i.e., (i) at farmgate level regarding production: other crop farmers neither directly involved in project-supported irrigation perimeters, nor targeted by the project extension activities being outside the production basins; they will benefit particularly from project spillover effects regarding improved crop management, higher quality crop inputs and services, better defined market norms and standards and improved financing conditions as a result of the project; (ii) at post-harvest and market level: buyers and processors, value chain service providers, including private inputs providers (seeds, fertilizers, feed, equipment suppliers) who will benefit from overall increased supply of commodities produced and traded due to better roads and tracks; and (iii) on the consumption side: domestic consumers in Burkina Faso who will benefit from increased quantity of food and attendant nutritional benefits at household level. E. Implementation Institutional and Implementation Arrangements . 39. The MAAH will have overall responsibility for project implementation, including management of environmental and social risks; it will liaise closely with the MI for implementation of rural tracks and roads activities, MEEVCC for the shea nut value chain development and with the Ministry in charge of Commerce, Industry and Handicraft (MCIA) for private sector development and agro-processing. The project’s governance structure will be modeled after the PARIIS project arrangements, including a Review Committee15 (RC) and a Project Management Unit (PMU) at the central level as well as three regional units based at MAAH’s regional offices and one regional unit hosted by AMVS. The RC will meet at regular intervals, at least once a year. It will be chaired by MAAH’s Secretary General and serve as guidance body. It will approve the Annual Work Plans and Budgets and progress reports. The PMU, based in Ouagadougou, will be fully mainstreamed into MAAH’s structure as advocated by authorities alongside other national project implementation units. It will come under MAAH’s Budget Program for Hydro-Agriculture and Irrigation Development which is one of the six MAAH budget programs. 40. Details regarding PReCA’s organizational arrangements are presented in Annex 1. The PMU will sign partnerships or technical agreements with MAAH’s and other ministries’ directorates to carry out project activities within their respective mandates. The National Coordinator of the project will be de facto the head of Budget Program for Hydro-Agriculture and Irrigation Development as per the new decree organizing the budget programs16.. The National Coordinator will delegate the management function of the project to a Project Manager 15 The RC will include representatives of the MAAH (General Secretary-SG, Cabinet, General Directorate of Studies and Sector Statistics- DGESS, DGPV, DGFOMR, DGPER); the Ministry of Economy and Finance (DGCOOP, DGEP, DGB); National Agriculture Chamber; Coordinators of projects and programs in the agriculture sector; representatives of financing partners, DCMEF/MAAH, DAF/MAAH, DGEVCC/MEEVCC and DMP/MAAH will also be invited to participate as observers. 16 Decree no. 2018-092/PRES/PM/MINEFID dated Jan. 17, 2018 regulating development projects and programs. Page 15 of 27 The World Bank Burkina Faso Agriculture Resilience and Competitiveness Project (P167945) who might be competitively recruited or appointed following the World Bank non-objection. His/her signature will be required to commit project financing. S/he will be assisted by a team of high caliber who might be competitively recruited or appointed, covering technical, fiduciary, social and environmental safeguard functions deemed critical for proper project implementation and management. As needed, some staff may be shared with other projects under the budget program. 41. MAAH has been responsible over the past decade, and is still responsible currently, for implementing several important World Bank-funded projects. It has acquired capacity to support the different PMUs from technical, financial management, safeguards and M&E viewpoints. Similarly, the other ministries which will be involved have enough capacity to implement project activities. This is the case of MI which has managed several externally-funded projects related to road infrastructure. Detailed implementation arrangements will be worked out as part of the PIM to ensure that MAAH and other ministries maintain enough implementation capacity, promote complementarity and avoid overlap between the different projects under their watch. The PIM will compile all procedures for PReCA’s operational implementation, encompassing the administrative, fiduciary, M&E, procurement and social and environmental safeguards procedures. It will include detailed TORs for all PMU staff. Drawing on the experience of other World Bank-financed projects, specific sections of the PIM will be prepared for (i) the Cost Sharing Facility (CSF) and (ii) the Contingent Emergency Response Component (CERC). F. Project location and Salient physical characteristics relevant to the safeguard analysis (if known) Four administrative regions have been selected for project implementation in the Western part of the country: Douna in Léraba province, Banzon in Kénédougou Province), Dourou in Passoré province and Bissan and Dangoumana Mouhoun in Mouhoun province. G. Environmental and Social Safeguards Specialists on the Team Abdoulaye Gadiere, Environmental Specialist Leandre Yameogo, Environmental Specialist Gertrude Marie Mathilda Coulibaly Zombre, Social Specialist SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) The operation will finance the rehabilitation and development of irrigated perimeters. It is also expected the construction or rehabilitation of all- Environmental Assessment OP/BP 4.01 Yes weather rural roads to fully opening up throughout the year all the project-targeted producing basins. In addition, the project will fund the construction of Page 16 of 27 The World Bank Burkina Faso Agriculture Resilience and Competitiveness Project (P167945) market facilities of public interest at national and/ or regional level. Furthermore, the Banzon's irrigation scheme will be rehabilitated. Consequently, an Environmental and Social Impact Assessment (ESIA) was developed for that irrigated perimeter and an Environmental and Social Management Framework(ESMF) was produced for investments that detailed studies are not available and locations unknown to date. Thereafter, both instruments were reviewed, consulted upon and disclosed publicly. The ESIA was disclosed in Burkina Faso on April 4 and at the World bank website on April 5, 2019 while the ESMF was disclosed in Burkina on March 7 and at the bank's website on March 27, 2019. Performance Standards for Private Sector No This policy is not triggered by the project. Activities OP/BP 4.03 Irrigation schemes are potentially known for hosting natural habitats, more specifically aquatic species habitats. However, it is not anticipated that planned investments will impact negatively natural habitats.This policy is triggered to draw the Natural Habitats OP/BP 4.04 Yes attention of the Project Management Unit (PMU) when civil works are going to be undertaken in irrigation schemes areas. The ESMF prepared in line with the OP4.01 includes a section for a proper management of Natural habitats that might be located irrigation schemes areas. This policy is not triggered since the Project will not affect forests nor forest-dependent communities, Forests OP/BP 4.36 No and the Project will also not involve or support changes in the management of forests. The project intends to support agricultural intensification. That may lead the producers to the use of chemical products such as pesticides. To anticipate and prevent any wrong use of pesticides with their adverse impacts on environment and Pest Management OP 4.09 Yes communities, an Integrated Pest Management Plan (IPMP) was developed as a separate instrument. Like the ESMF, this safeguard tool once prepared, was reviewed, consulted upon and disclosed in Burkina Faso on March 7 and at the World bank website on March 27, 2019. In order to anticipate and to be sure that all the Physical Cultural Resources OP/BP 4.11 Yes precautions have been taken to protect and safeguard physical cultural resources, a section Page 17 of 27 The World Bank Burkina Faso Agriculture Resilience and Competitiveness Project (P167945) addressing these concerns has been included in the ESMF. This section will show how to handle chance finds of cultural assets within the project area. This, because activities related to the construction and rehabilitation of irrigated perimeters, feeder roads, markets facilities and other infrastructure works will induce excavations with potential discoveries of physical cultural resources. There are no Indigenous People as defined by the Indigenous Peoples OP/BP 4.10 No policy in Burkina The project will finance activities that could induce potential adverse social impacts that may lead to land acquisition and/or restrictions on access to resources and sources of income or livelihoods: rehabilitation and development of irrigated perimeters, construction or rehabilitation of all- weather rural roads to fully opening up throughout the year all the project-targeted producing basins, construction of market facilities of public interest at national and/ or regional level. Furthermore, the Involuntary Resettlement OP/BP 4.12 Yes Banzon's irrigation scheme will be rehabilitated. Consequently, a Resettlement Action Plan (RAP) was developed for that irrigated perimeter and Resettlement Policy Framework (RPF) was produced for investments whose detailed studies are not available and locations unknown to date. Thereafter, both instruments were reviewed, consulted upon and disclosed publicly. The RPF was disclosed in Burkina on March 22 and at the Bank's website on March 27, 2019. As for the RAP, it was disclosed in- country and at the bank's website on April 5, 2019. The policy is triggered because the project will intervene in irrigation schemes that rely on existing dams. The project will not have direct intervention on dams. The situation of existing dams is described as follows: Dourou dam: This dam is located upstream of Safety of Dams OP/BP 4.37 Yes Dourou irrigation scheme and has a capacity of 83 Hm3 and a 10.5 m height. A review of Dourou dam safety conditions was commissioned by the Ministry of Agriculture and financed by the WBG project PARIIS in 2017. The report was approved by the Ministry and the World Bank in February 2017. The remedial works related to the structural stability of Page 18 of 27 The World Bank Burkina Faso Agriculture Resilience and Competitiveness Project (P167945) the dam identified in this study were carried out in 2018 under the State budget as evidenced during a WBG mission in November 2018. Further studies shall be carried out to assess the suitable option for increasing the discharge capacities of the spillways. The hydrological risk has been identified as one of the most critical dam safety risks by the independent dam safety assessment in 2017. Mouhoun / Léry dam: Regarding the Sourou Valley where the project will finance the construction of Dangoumana and Bissan schemes, the Mouhoun/Léry dam (580 Hm3 / 8 m) was rehabilitated in 2014 through the project “Projet de Développement de l ’Agriculture (PDA)� financed by the Millennium Challenge Account (MCA) with complementary works financed by the Government in 2017 and 2019. The MCA project also financed, in 2014, a review of the Operation and Maintenance of the Mouhoun /Léry dam and recommended procedures for the O&M during the different seasons and in case of extreme events (floods); these recommendations are currently followed by the entity in charge of the dam operation, the Mouhoun Water Agency (Agence de l’Eau du Mouhoun). The O&M Plan should be updated along with a comprehensive dam safety assessment taking into account the reservoir operation of the recently constructed Samendéni dam in the upstream of the river Samendéni dam: Two hundred kilometers upstream Mouhoun/Léry dam, on the Mouhoun river, the Government of Burkina Faso has built in 2017 another large dam, with a capacity of 1,050 Hm3 and a height of 23.9 m. The reservoir has been filled for the first time in 2018. The overall impacts of this dam on the WBG investments in Bissan and Dangoumana would be positive: (i) the dam will contribute to better control flood during the rainy season which will reduce the risks downstream and; (ii) the Samendéni dam will increase the flow on the dry season, which will increase the water availability for irrigation in the Sourou Valley. The independent dam safety assessment and preparation of dam safety plans; i.e. O&M Plan covering Page 19 of 27 The World Bank Burkina Faso Agriculture Resilience and Competitiveness Project (P167945) Instrumentation Plan, and Emergency Preparedness Plans, shall be undertaken in an expeditious manner. During project implementation, dam safety risk assessments and dam safety plans (including O&M plans, Instrumentation plans and Emergency Preparedness Plans) will be carried out as well as periodic dam’s safety inspections for the Dourou dam, the Mouhoun/Léry dam and the Samendéni dam and have been included in the Financing Agreement as Disbursement Conditions before the start of irrigation schemes’s construction. If some additional remedial works are identified for the dams, the Government will finance such complementary remedial works or safety-related measures. The proposed project finances the rehabilitation and development of irrigation schemes that will draw on an international waterway and its tributaries. In Projects on International Waterways Yes accordance with the policy, riparian countries and OP/BP 7.50 the Volta Basin Authority were notified in April 2019. The Volta Basin authorities and riparian countries expressed their no-objection to the project. The project coverage is not located in a Disputed Projects in Disputed Areas OP/BP 7.60 No Area. KEY SAFEGUARD POLICY ISSUES AND THEIR MANAGEMENT A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: The operation will finance the rehabilitation and development of irrigation schemes. It is also expected the construction or rehabilitation of all-weather rural roads to fully opening up throughout the year all the project- targeted producing basins. In addition, the project will fund the construction of market facilities of public interest at national and/ or regional level. Some of these infrastructures may have major environmental and social impacts. Irrigation investments may have adverse but limited environmental impacts on water resources, for the most part, and will require the resettlement of some local communities. The main environmental safeguards issues for the project relate to water pollution, construction waste management, water abstraction and changes to water outflows from the rivers and associated impacts on downstream human needs and aquatic habitats, and biodiversity. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: Irrigation investments in the project area may have a medium to long term impact on water cumulative off-takes from the waterways. The long-term social impact is also of importance, as agricultural development may lead to intense Page 20 of 27 The World Bank Burkina Faso Agriculture Resilience and Competitiveness Project (P167945) migration within the Project intervention area. Among the more beneficial potential indirect long-term impacts are the use of more water-saving irrigation systems and technologies. This will be further supported by sustained dialogue on water management in the project area and the proposed measures aimed at reducing water consumption for irrigation. This will include different measures and incentives to facilitate the adoption of water saving techniques, as well as a more transparent planning of public and private investments in the coming years. Lastly, in compliance with the triggering of OP7.50, a notification letter was sent to each of the other five riparian countries and the Volta Basin Authority (VBA). The countries and the VBA expressed their no-objection to the project 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. The rehabilitation of the irrigated perimeters and of the access roads are crucial to the achievement of the project objectives and they will be done with minimal effect to the environment and all precautionary measures will be taken to avoid causing any irreversible damage to the environment. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. The project is rated as Environmental Assessment Category “A�, requiring a full environmental assessment. The following environmental safeguard policies are triggered: Environmental Assessment (OP/ BP 4.01); Natural habitats (OP/ BP.04); Dam Safety (OP/ BP 4.37); Pest Management (OP 4.09); Involuntary Resettlement (OP/BP 4.12); Physical Cultural Resources (OP/ BP4.11) and Projects on International Waterways (OP/ BP 7.50). The project has adopted a framework approach to deal with environmental matters. This is justified since exact locations for a substantial number of program activities, particularly those of the sub-projects, which may have environmental potential adverse impact, have not yet been determined with certainty. Therefore, an Environmental and Social Management Framework (ESMF) has been prepared in line with OP/BP4.01. This ESMF includes specific chapters on Natural Habitats and Physical Cultural Resources in compliance with OP4.04, OP4.37 and OP/BP4.11 respectively. With respect to Pest Management in line with the OP4.09 triggering, a Pest Management Plan has been developed as a stand-alone document. In addition to the above-mentioned documents, the Borrower has prepared an Environmental and Social Impact Assessment (ESIA) for developing and expanding the Banzon irrigation scheme as part of project investments. Lastly, with the aim of being in full compliance with the triggering of OP7.50, a notification letter was sent to each of the five other members countries of Volta Authority Basin that replied positively, granting their agreement for the project approval. The ESMF lays out procedures for screening and mitigating impacts from construction and operation of the irrigation schemes, and includes the following: (a) checklists of potential environmental and social impacts and their sources; (b) procedures for participatory screening of proposed sites and activities and the environmental and social considerations; (c) procedures for assessing potential environmental and social impacts of the planned project activities; (d) institutional arrangements for mitigating, preventing, and managing the identified impacts; (e) typical environmental management planning process for addressing negative externalities in the course of project implementation; (f) a system for monitoring the implementation of mitigation measures; and (g) recommended capacity building measures for environmental planning and monitoring of project activities. The PMP encourages the use of organic fertilizers and biological technics to fight against agriculture predators. In addition to that, it sets up guidance and guidelines with the aim to protect population health and environment integrity in promoting best practices in the case of use of chemical products. The RPF document outlines the principles and procedures for resettlement and or compensation of subproject- Page 21 of 27 The World Bank Burkina Faso Agriculture Resilience and Competitiveness Project (P167945) affected people, and establishes standards for identifying, assessing and mitigating negative impacts of program supported activities. In addition, the RPF will guide the preparation and implementation of RAPs for each individual sub project that triggers the involuntary resettlement policy. Specific ESIAs and RAPs will be prepared for relevant activities before project implementation along with Environmental and Social Management Plans (ESMPs). The ESIAs will provide mitigation measures for all the potential impacts as a result of the triggering of the above-mentioned safeguard policies. In addition to these above mentioned 03 documents, the borrower has also prepared 01 ESIA and 01 RAP for Banzon’s irrigation scheme that was clearly identified as being part of futures investments. All of these 05 safeguard instruments have been reviewed by the banks’ specialists, consulted upon and disclosed in Burkina Faso and at the Bank’s website as follows. -ESMF, disclosed in Burkina Faso on March 7 and at the World bank website, on March 27, 2019. -PMP disclosed in Burkina Faso, on March 7 and at the World bank website on March 27, 2019. -RPF disclosed in Burkina Faso, on March 22 and at the World bank website on March 27, 2019. -ESIA disclosed in Burkina Faso on April 4, and at the World bank website, on April 5, 2019. -RAP disclosed in Burkina Faso and at the World bank website on April 5, 2019. The Project Management Unit (PMU) carry out the screening for all investments will determine the actions necessary to comply with environmental and social safeguard policies and national legislation. It will determine whether an ESIA and/or RAP, or both, will be required and will prepare appropriate safeguards instruments for each of the sub- projects. The PMU will commission the preparation of detailed ESIAs and RAPs to be carried out by independent consultants, based on terms of reference (TORs) to be reviewed by BUNEE and the Bank. The PMU will be responsible not only for the overall implementation of the PMP, ESMF, RPF and specific safeguard instruments required for specific Project activities (i.e. ESIAs and/or RAPs), but also for the internal monitoring of proposed mitigation measures. All site-specific safeguard instruments will be submitted to BUNEE for decision before submission to the Bank for review, clearance and disclosure in-country and on the Bank’s website. Responsibility and oversight of the Project’s overall compliance with national and Bank safeguard policies will be devolved to the environmental Safeguards Specialist and social Safeguards specialists within the PMU, as the main persons in charge of project implementation and monitoring of safeguard aspects. They will be working in close collaboration with BUNEE. BUNEE will not only conduct periodic monitoring of project’s compliance with proposed mitigation of changes, but also changes in environmental resources (i.e., water and soil quality, flora and fauna, vector ecology, soil erosion etc.) from the baseline. Further, all civil works, for developing or expanding irrigation schemes; construction and rehabilitation activities of other types of infrastructure, will be contingent on broad-based and sustained consultation with local communities in project’s intervention area. Mitigation measures for identified environmental and social impacts, including avoiding or sparing cultural and historical resources and other environmental clauses, will be properly implemented by contractors and sub-contractors, as specified in the safeguard instruments and bidding documents. Selected contractors and their Resident Engineering Teams will be required, each, to hire an environmental and social experts with strong skills in Occupational Health and Safety issues for the environmental specialist and Labor influx and Gender Based Violence (GBV) for the social specialist, whose roles are to ensure specific Environmental, Safety, Health and Social clauses are fully and adequately implemented and reported on. Page 22 of 27 The World Bank Burkina Faso Agriculture Resilience and Competitiveness Project (P167945) The BUNEE will be responsible for ensuring the Project activities are implemented in accordance with national laws while the World Bank’s specialists will make sure that all investments that may have potential adverse impacts are in full compliance with environmental and social safeguard policies triggered by the project. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The preparation of the safeguard documents (i.e. ESMF, PMP, RPF, ESIA and RAP) followed a broad-based and in- depth consultation approach with and interviews of relevant stakeholder groups in the public and private sectors and civil society. These consultations include Producer Organizations, particularly those within or in the vicinity of the Project intervention area, key Ministries and Government agencies, in particular Ministries of Agriculture, Water resources, Environment, Health, the Plant Protection Agency, pesticides wholesalers and retailers; BUNEE, the national agency in charge of review and enforcement of environmental legislation and regulations; health care personnel and NGOs. While local populations were enthusiastic about and confirmed their interest in the proposed investments, they nonetheless raised a few issues that prevail in current exploitation and management practices in the project area. Producers and local Government representatives have requested to be fully involved in the design and implementation of land allocation process; fostering marketing and commercialization of agricultural produce domestically, as well as in the sub-region; Fostering a dynamic framework for dialogue and consensus building between crop producers and livestock producers, strengthened by binding laws and regulations designed to avoid/minimize conflicts between them; concerted efforts and synergy among sectoral agencies for environmental sustainability in the project intervention area. In particular, participants wished close involvement of the forestry and nature conservation departments in the project implementation, in order to minimize deforestation, river banks degradation; proliferation of water borne diseases; existence of prohibited pesticides, inadequate storage and misuse of pesticides; lack of opportunities of women in productive agriculture. These concerns have all been reflected in the safeguards documents and appropriate recommendations have been formulated. B. Disclosure Requirements OPS_EA_DISCLOSURE_TABLE Environmental Assessment/Audit/Management Plan/Other For category A projects, date of Date of receipt by the Bank Date of submission for disclosure distributing the Executive Summary of the EA to the Executive Directors 19-Feb-2019 27-Mar-2019 05-Apr-2019 "In country" Disclosure OPS_RA_D ISCLOSURE_T ABLE Resettlement Action Plan/Framework/Policy Process Page 23 of 27 The World Bank Burkina Faso Agriculture Resilience and Competitiveness Project (P167945) Date of receipt by the Bank Date of submission for disclosure 22-Feb-2019 27-Mar-2019 "In country" Disclosure OPS_ PM_D ISCLOSURE_TA BLE Pest Management Plan Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of submission for disclosure Yes 18-Feb-2019 27-Mar-2019 "In country" Disclosure OPS_PM_ PCR_TABLE If the project triggers the Pest Management and/or Physical Cultural Resources policies, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: N/A C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OPS_EA_COMP_TABLE OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit or Practice Manager (PM) review and approve the EA report? Yes Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes OPS_ NH_COM P_TA BLE OP/BP 4.04 - Natural Habitats Would the project result in any significant conversion or degradation of critical natural habitats? Page 24 of 27 The World Bank Burkina Faso Agriculture Resilience and Competitiveness Project (P167945) No If the project would result in significant conversion or degradation of other (non-critical) natural habitats, does the project include mitigation measures acceptable to the Bank? NA OPS_ PM_COM P_TA BLE OP 4.09 - Pest Management Does the EA adequately address the pest management issues? Yes Is a separate PMP required? Yes If yes, has the PMP been reviewed and approved by a safeguards specialist or PM? Are PMP requirements included in project design? If yes, does the project team include a Pest Management Specialist? Yes OPS_ PCR_COM P_TA BLE OP/BP 4.11 - Physical Cultural Resources Does the EA include adequate measures related to cultural property? Yes Does the credit/loan incorporate mechanisms to mitigate the potential adverse impacts on cultural property? Yes OPS_IR_ COMP_TA BLE OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework (as appropriate) been prepared? Yes If yes, then did the Regional unit responsible for safeguards or Practice Manager review the plan? Yes OPS_SD _COMP_ TABLE OP/BP 4.37 - Safety of Dams Have dam safety plans been prepared? NA Have the TORs as well as composition for the independent Panel of Experts (POE) been reviewed and approved by the Bank? NA Has an Emergency Preparedness Plan (EPP) been prepared and arrangements been made for public awareness and training? NA OPS_ PIW_COMP_ TABLE OP 7.50 - Projects on International Waterways Have the other riparians been notified of the project? Page 25 of 27 The World Bank Burkina Faso Agriculture Resilience and Competitiveness Project (P167945) Yes If the project falls under one of the exceptions to the notification requirement, has this been cleared with the Legal Department, and the memo to the RVP prepared and sent? NA Has the RVP approved such an exception? NA OPS_ PDI_ COMP_TA BLE The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank for disclosure? Yes Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? Yes All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? Yes Have costs related to safeguard policy measures been included in the project cost? Yes Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? Yes Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? Yes CONTACT POINT World Bank Nicolas Ahouissoussi Senior Agriculture Economist Juvenal Nzambimana Senior Operations Officer Borrower/Client/Recipient Page 26 of 27 The World Bank Burkina Faso Agriculture Resilience and Competitiveness Project (P167945) MInistry of Economy and Finance Implementing Agencies Ministry of Agriculture and Irrigation Development Guire Allassane Secretary General guire_alassane@outlook.com FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects APPROVAL Nicolas Ahouissoussi Task Team Leader(s): Juvenal Nzambimana Approved By Safeguards Advisor: Agi Kiss 22-Jul-2019 Practice Manager/Manager: Nabil M. Chaherli 23-Jul-2019 Country Director: Ivan Velev 30-Jul-2019 Page 27 of 27