Documentof The World Bank FOR OFFICIAL USE ONLY ReportNo: 45237-TG FOODPRICE CRISIS RESPONSETRUST FUND PROJECTPAPER ONA PROPOSEDADDITIONAL FINANCINGGRANT UNDERTHE GLOBALFOODCRISISRESPONSEPROGRAM INTHE AMOUNT OFUS%7MILLION TO THE REPUBLIC OF TOGO FOR THE COMMUNITY DEVELOPMENT PROJECT(CDP) September 30,2008 Human Development Sector West Africa Department 2 Africa Region This document has arestricteddistribution and may beusedbyrecipients only inthe performance o f their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCYEQUIVALENTS (Exchange Rate Effective August 25,2008) Currency Unit= CFA Franc (FCFA) US$1 =FCFA 430 FISCALYEAR January 1-December 31 ABBREVIATIONSAND ACRONYMS AFD FrenchAid Agency (AgenceFranqaise de Diveloppement) AGAIB Agency for support to grass root initiatives (Agences d 'Appui aux Initiatives de Base) BNL National Liaison Office (Bureau National deLiaison) CAGIA StateProcurement Agency for Agricultural Inputs(Centrale d 'Achat et de Gestion des Intrants Agricoles) CBOs Community BasedOrganizations CDD Community DrivenDevelopment CDP Community Development Project CPIA Country Policy and Institutional Assessment CSLP Poverty Reduction Strategy Framework (Cadre Stratbgique de Lutte contre la Pauvretb) CVD Village Development Committee (Comitb VillageoisdeDbveloppement) D O Development Objective DRAEP Regional level branch of the Ministry of Agriculture (Directions Rbgionales de 1'Agriculture de I'Elevage et de la P2che) DPAEP Prefect level brancho f the Ministryof Agriculture (Directions Prbfectorales de 1'Agriculturede I'Elevage et de la PGche) EC European Commission EPP Emergency Project Paper EPPR Emergency Programfor Poverty Reduction (Projet d'Urgencepour la Rbduction de la Pauvretb) ESMF Environmentaland Social Management Framework EU European Union FA0 Food and Agriculture Organization FPCR TF Food Price Crisis ResponseTrust Fund FM Financial Management GDP Gross Domestic Product GFRP Global FoodCrisis ResponseProgram IBRD InternationalBank for Reconstruction and Development ICAT State Agency Responsible for Agricultural Extension Services (Institut du Conseil et de 1'Appui Technique) IDA InternationalDevelopment Association IGA Income Generating Activity IFR Interimun-auditedFinancialReport I S N InterimStrategy Note IP Implementation Progress I-PRSP InterimPoverty Reduction Strategy Paper ITRA Togolese Agricultural Research Institute (Institut Togolais de Recherche Agronomique) 1 FOROFFICIAL USE ONLY LICUS L o w Income Countries Under Stress MAFL MinistryofAgriculture, FisheryandLivestock (Ministkre de I'Agriculture, de I'Elevageet de la Pzche) MDG Millennium Development Goal MICS MultiIndicator Cluster Survey NGO N o n Governmental Organization OSAT State agency regulating agriculture production stock (Obsewatoire de Se`curitdAlimentaire du Togo) PIM Project ImplementationManual PMP Pest Management Plan (Plan de GestionAntiparasitaire) PDO Project Development Objective PRSP Poverty Reduction Strategy Paper QUIBB Core Welfare Indicators Survey (Questionnaire des Indicateurs de Base du Bien-&re) RPF Resettlement Policy Framework SDR Special Drawing Rights TS Technical Secretariat (Secre`tariat Technique) UN UnitedNations UNDP UnitedNations Development Program UNICEF UnitedNations Children's Fund USAIDW United States Agency for International Development WFP World Food Program WHO World HealthOrganization Vice President: Obiageli Katryn Ezekwesili Country Director: Madani M,Tall Sector Director: Yaw Ansu Sector Manager: Eva Jarawan Task Team Leader: Giuseppe Zampaglione This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization. REPUBLICOF TOGO ADDITIONAL FINANCINGFOR THE COMMUNITY DEVELOPMENTPROJECT(CDP) TABLE OF CONTENTS Project Paper Data Sheet iv 1 1 2.. .................................................................................................... Introduction ................................................................................................................ background andRationale for Additional Financing 2 Country Background ....................................................................................................... ................................................ 2 Magnitudeandimpact of the food price crisis andofrecent floods............................... 2 Government and InternationalResponse ........................................................................ 4 4 3 Project Background, Project Performance and Institutional Capacity ....................... 5 4..Rationalefor additional Bank financing ......................................................................... ProposedChanges ...................................................................................................... 6 5.General. Implementation Arrangements., ......................................................................................................................... ................................................................................. 8 8 School Feeding Emergency Operation 11 EnhancedCereal Production ......................................................................................... ......................................................................... 13 6 Consistencywith Interim StrategyNote (ISN) ........................................................ 15 7.. Appraisal of Scaled-Up Project Activities............................................................... 16 8 Expected Outcomes ................................................................................................. 19 9.. Benefits andRisks .................................................................................................... 19 10. Financial Terms and Conditions for the Additional Financing ............................... 21 ListofTables: Table 1: ConsumerPrices o fMainFoodProducts (FCFA) .............................................. 3 Table 2: Project Cost by Component ................................................................................ 10 Table 3: Allocation of Grant Proceeds., ............................................................................ 10 Table 4: DisbursementSchedule ..................................................................................... 11 Table 5: Project Risk andMitigationMeasures ............................................................... 19 ListofAnnexes: Annex 1: RevisedResults Framework andMonitoring ..................................... Annex 2: Flow o fFunds o f the School Feeding Emergency Operation................... 22 Annex 3: Financial Management Assessment Conducted for the OriginalProject Annex 4: Togo at a glance ..............................................................................271 28 3 ... 111 PROJECT PAPERDATA SHEET Date: September 30,2008 Team Leader: GiuseppeZampaglione Country: Republic of Togo Sector DirectoriManager: Yaw Ansu / Eva Project Name: Community Development Jarawan Project (Additional Financing) Country Director: Madani M.Tall Project ID:P113544 EnvironmentalCategory: B FY 2009 2010 2011 2012 Annual 4.20 2.50 0.20 0.10 Cumulative 4.20 6.70 6.90 7.00 Does the restructured or scaled-up project require any exceptions from Bank policies? N o Have these beenapproved by Bank management? N / A I s approval for any policy exception sought from the Board? N o Original Development Objective: "To provide poor communities with improved basic socio- economic infrastructures and income generating activities by financing at least 350 subprojects to be identifiedand implementeddirectly by communities." The new PDO would read as follows: "To provide poor communities with improved basic socio-economic infrastructures and income generating activities by financing, among others, at least 350 subprojects to be identified and implemented directly by communities." Inaddition, the proposed CDP Additional Financing will realign the focus of its operations to accommodate the emergency needs of flood-affected areas. Resultant proposed changes include: (i)adding a School Feeding Emergency Operation sub-component under Component 1 (Community Development); and (ii)new Enhanced Cereal Production component (Component a 4). Consequently, the Results Framework has beenmodified to be in alignment with the refined PDO and implementation changes. Condition of Disbursement: There i s one condition of disbursement for the cereal production component, which i s that the TS transmit for Bank no-objection the operating guidelines of the EnhancedProduction of Cereals component. Such guidelines will be preparedby the TS with the support of the MAFL, and transmitted within one month o f project approval. As described in Schedule 2, section I,B and C, dated covenants include the preparation o f operating guidelines for the School FeedingEmergency Operation and preparation of an annex to the ESMF with the PMP. iv Doesthe scaled-up or restructuredproject trigger any new safeguardpolicies? Yes, the PestManagement(OPBP 4.09) safeguard i s triggered inaddition to the two safeguards triggeredbythe CDP, namely, Environmental Assessment (OPBP/GP 4.01) andInvoluntary Resettlement (OPBP 4.12). For Additional Financing [] Loan [ 3 Credit [X ] Grant For Loans/Credits/Grants: Total Bank financing (US$m.): US$7.0 million Proposedterms: Grant financed from the FoodPrice Crisis Response Trust Fund(FPCR TF) Source Local Foreign Total Borrower 0.00 0.00 0.00 FPCRTF 2.50 4.50 7.00 Total 2.50 4.50 7.00 V 1. INTRODUCTION 1. This Project Paper seeks the approval o f the Executive Directors to provide an additional financing grant in the amount o f US$7.0 million to the Government o f Togo for the Community Development Project (CDP) P110943 Grant Number H409-TG. Financing o f the additional grant would come from the Food Price Crisis Response Trust Fund(FPCR TF), which was endorsed by the Board on May 29,2008. The objectives of the proposed GFRP are to (i) the negative impact o f high and volatile food prices reduce on the lives o f the poor in a timely way; (ii)support governments in the design o f sustainable policies that mitigate the adverse impacts o f high and more volatile food prices on poverty while minimizingthe creation o f long-term market distortions; and (iii) support broad-based growth in productivity and market participation in agriculture to ensure an adequate and sustainable food supply response." Given the nature o f the activities to be financed under the additional financing, a restructuring o f the parent project i s also proposed, as detailedbelow. 2. As a country emerging from over a decade o f a governance and economic crisis, Togo i s extremely susceptible to the consequences o f high food prices, including the risk o f reversal o f recent progress inrestoring economic and political stability. The proposed additional grant would support the expansion o f the Community Development Project and its broad objective to provide improved socio-economic infrastructures and income generating activities to vulnerable communities by financing (i)community nutrition interventions targeting primary school children; and (ii)the costs associated with increasingthe production o f cereals. 3. This additional financing is being provided inresponse to a significant escalation o f food prices, especially o f staple foods, that are at the base o f the Togolese diet. This is increasing hardship in already poor communities and is exacerbating child malnutrition. The recent flooding inSouthern Togo has worsened an already precarious situation. 4. A World Bank policy note describing the responses to the food price crisis' divides policy interventions into three broad categories: (i)interventions to ensure household food security by strengthening targeted safety nets; (ii) interventions to lower domestic food prices through short-run trade policy measures or administrative action, and (iii) interventions to enhance longer-term food supply. The proposed additional financing would contribute to increase agricultural productivity (intervention iii),and support an emergency program providing lunches for children attending primary school, thus increasingtheir parents' available income (intervention i). 5. The Project has been designed and will be implemented in close collaboration with the Ministryo f Agriculture, Fishery and Livestock (MAFL), with the Ministryo f Education, and with development partners, including WFP, UNDP, FAO, the EU, and the French Aid Agency (Agence Franqaise de Ddveloppement). Overall institutional 'Revenga,Ana et al. Rising Food Prices: Policy Options and WorldBank Response. Notepreparedfor the DevelopmentCommitteeMeeting,April 2008. 1 responsibility falls under the Ministry o f Cooperation, Development and Regional Planning (Ministire de Tutelle). 2. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING COUNTRYBACKGROUND 6. During the 1990s and most o f the current decade, macroeconomic mismanagement, lack o f transparency regarding public resource investments, and an authoritarian and undemocratic regime led major donor agencies to suspend their programs in support o f Togo. In May 2002, as a consequence of the political and economic crisis, Togo fell into arrears with the World Bank, and operations were suspended, along with almost all dialogue and analytical work. 7. The prolonged governance and economic crisis weakened the country's public sector institutions and negatively affected its economic and social indicators. Togo's Country Policy and Institutional Assessment (CPIA) rating in 2006 was 2.5, significantly lower than that o f its neighbors. Duringthe period 1990-2005, GDP per capita dropped o f the population -- have suffered the most. A household survey completed in 2006 at an average rate o f one percent a year. Rural communities -- accounting for 63 percent (QUIBB)shows that 61.7 percent o f the population lives below the poverty line, and 80 percent of the poor live inrural areas. Difficulties inaccessing markets, low productivity and soil degradation have caused household incomes to drop. Moreover, the nutritional status of the population -- and o f children in particular -- has deteriorated since 1998, resulting in a situation where one out o f four children i s undernourished (MICS3 2006). Inrural areas, 47 percent o f the population is considered food insecure and an additional 37 percent i s at risk. The recent food price crisis i s exacerbating this situation. MAGNITUDEIMPACTOFTHEFOODPRICECRISISANDOFRECENTFLOODS AND 8. Over the last several months, as a result o f recent increases inworld market prices for food and fuel, local prices o f staple food and agricultural inputs have sharply increased (see Table 1). Among Sub-Saharan African countries, Togo has been one o f the hardest hit by the recent food and fuel price crisis. 9. A recent study on food security inTogo' suggests that recent price developments are part o f a longer period trend especially for staple foods such as maize, sorghum, and rice. For example, in the case o f maize, which makes up to 65 percent o f total staple production, prices increasedby almost 42 percent in2007 alone. * Tortora,Piera, and Jeronimo Capaldo, "Securitt Alimentaire," drafl paper, June 30, 2008. 2 Source: Department Generalfor Statistics,N Mercuriale desprix desproduits alimentaires et autre )),May 2008. 10. These food price spikes have been exacerbated by flooding last year in the North o f the country and this year in the South. Last year's floods, in the Savanes region in particular, severely affected agricultural production leading to higher local food prices, more difficult access to food, and decreased household incomes. In late July and early August o fthis year, unusually heavy rains andconsequent floods haveravagedthe South, especially the Maritime and Plateaux regions. The floods have affected some 50,000 people, displaced approximately more than 10,000 individuals and wiped out large tracts o f the road infrastructure, including 9 major bridges. Access to main towns and to markets has become very difficult, further increasing transportation costs. It is also estimated that more than 10,000 hectares o f arable landhave been submerged by waters, compromising the upcoming agricultural season. 11. A recent assessmentprepared byWFP3shows that because o fthe combined effect o f higher food prices and loss o f agricultural production due to the floods, 13 percent of households in the Savanes are severely food insecure and more than a third o f the households inthe Savanes, Kara and Plateaux regions are at risk o f losing their livelihood (300,000 people). The study also shows that coping strategies include adults reducing their daily food intake in favor o f children, downgrading the nutritional quality o f the mainmeal, eating seeds stocked for the next season, and selling livestock. 12. The crisis i s having a particularly negative impact on Togo's children. According to a recent UNICEF s t ~ d y ,in LomC), Kara and Savanes -- approximately ~ the three most affected regions -- Maritime (excluding 50,000 children under five are suffering from by WHO (>lo percent). Similar percentages are also found among children attendingthe malnutrition and the rate o f severe malnutrition inthis group exceeds the critical level set first two years o f primary school. Given that malnutrition has long-term effects on children's learning capacity and cognitive skills, this situation raises particular concerns. ((Evaluation de la skcuritk alimentaire des mknages affectks par les inondations de la campagne 2007- 2008 au Togo D, Executive Summary, Draft, April 30,2008. http://www.unicef.org/wcaro/WCARO Togo Factsht Malnutrition.pdf 3 UNICEF identifies a number of constraints to responding to this crisis, including: lack o f financial resources, insufficient and poorly trained health staff, and limitedunderstanding o f malnutrition within the population. GOVERNMENT INTERNATIONALRESPONSE AND 13. The Government has been preparing a full strategy for the agricultural sector, centered on the need to produce sufficient food for domestic consumption, and looking at the entire production, transformation and marketing cycle so as to respond to the food price crisis in a systemic way. The Government has prepared a Country Status Report on Education and i s preparing a f i l l proposal to the Education For AlliFast Track Initiative (EFMFTI) with support from the Bank, the French aid agency (Agence Franqaise de De'veloppement) and other agencies. If approved, the EFMFTI program will become the main vehicle for international support to primary education inTogo and will also include long-term measures to establish sustainable school feeding programs. 14. The response o f the international community to the food price crisis has focused on maternal and early childhood (under 5 years) nutrition, with a series o f activities implemented by UNICEF earlier this year, and on restoring food production, with a project to be run by FA0 that has not yet begun. The proposed additional financing represents the first concrete World Bank response to the crisis, and it complements these andother activities byother development partners. 15. Concerning the recent floods, the Government and numerous other organizations have begun to respond to the humanitarian crisis. France and Ghana sent in military equipment and engineers to help with the initial response in the days following the flooding, inparticular to rehabilitate some o f the main bridges. The Togolese Red Cross, with the support o fUSAIDand other donors, is providing emergency reliefsupplies. The European Union has pledged the equivalent o f US$l.5 million to rehabilitate some feeder roads and some small bridges inthc Maritime and Plateaux regions. However, the needs remain large and the major rebuilding effort has not yet begun. The Ministryo f Security and Civil Protection, in coordination with the UN, has prepared an Emergency Action Plan (Le Plan d'Organisation des Secours - Plan ORSEC), which is intended to be the basis for all interventions. RATIONALEFORADDITIONAL BANKFINANCING 16. Having recently reengaged in Togo and with the experience o f the Emergency Program for Poverty Reduction (EPPR), the Bank is well positioned to provide emergency assistance to the Government in its response to the food price crisis. The Technical Secretariat (TS) established to support the implementation o f the Bank- financed CDP i s equipped to manage additional funds in a responsible and rational way by means o f a comprehensive Project Implementation Manual, and CDP staff has been trained on Bank fiduciary guidelines and safeguards. 4 17. Moreover, in the context o f the Bank's reengagement in Togo, this operation would give an additional and tangible signal to the Government and to the population o f the Bank's willingness to consolidate its reengagement andto build up a full program. In particular, this operation would help deepen the dialogue inthe agriculture and education sectors and serve as a platform for future activities. 18. The proposed additional financing is consistent with the framework o f the GFRP. The FPCR TF facility is designed to address immediate needs in agriculture and to support safety net programs for the most vulnerable, such as school feeding programs. Moreover, the proposed activities complement the assistance available from other donors. By providing easier access to food for primary school children, the project will provide continuity to the UNICEF program that focuses on children under five. As for agriculture, the proposed activities will complement the work o f FA0 and WFP and will support the Government's response to the food price crisis. 3. PROJECTBACKGROUND,PROJECTPERFORMANCE AND INSTITUTIONALCAPACITY 19. CDP Background Since 2004, the Bank's LICUS TF has financed an Emergency Program for Poverty Reduction (EPPR), which provided the basis for the design o f the CDP and o f the activities proposed for the additional financing. On June 26, 2008 the Board approved the financing for the CDP in the amount o f US$17.2 million. The Financing Agreement, Project Agreements and Subsidiary Financing Agreements were signed on July 16, 2008. The project was declared effective on September 10,2008. 20. The CDP includes three components: (1) Community subprojects (US$12.5 million) to improve access to education, health, water and sanitation, and other socio- economic infrastructures as well as to income generating opportunities; (2) Training (US$1.7 million) at community, regional and national levels; and (3) Management, operating costs and audits (US$3 .O million). 21. Project Performance and InstitutionalCapacity. This operation is processed as an additional financing under OP 8.00. On July 24, 2008, the Managing Directors o f the Bank approved a blanket waiver o fthe requirement o f OP 13.20 Additional Financing Under Investment Lending, para 2(a), which lays out the principles for additional financing, whether or not it is processed under OP 8.00 Rapid Response to Crises and Emergencies. OP 13.20, para 2 states that "The Bank provides additionalfinancing only when it is satisfied that (a) implementation of the project, including substantial compliance with loan covenants, is satisfactory" as a condition for additional financing for operations processed under the Global FoodPrice Crisis Response Program. As it i s a requirement for Additional Financing to be able to prove satisfactory implementation and this particular operation did not have an implementation record, the operation would not have qualified for additional resources without the MDwaiver, which has been obtained. The MDblanket waiver has beengiven to all operations processed under the Global Food 5 Price Crisis Response Program which are in the same situation. 22. As the CDP hasjust become effective, there is no track record o fcompliance with loan covenants or success in achieving expected outcomes, and an assessment o f project performance would be premature at the moment. However, the CDP and the proposed additional financing are based on the success inthe implementation o f the EPPR financed bythe LICUS TF. For over three years the EPPRhas been supporting rural communities with the aim o f preventing firther deterioration in social services using the Community Driven Development (CDD) approach. The initial focus o f the EPPR was on the Maritime and Savanes regions, leveraging the initial work o f a previous Bank-financed pilot social find which was suspended in 2002. The EPPR has had three phases (launching, consolidation and expansion), and has disbursed more than US$2.5 million (out o f US$4.5 million). The last phase, which i s under implementation, is expanding the operation to the other three regions o f the country, Centrale, Kara and Plateaux. The EPPR is scheduled to close at the end o f FY09, and as of mid 2008, is proving highly successful (e.g., under the first phase, 112 subprojects were completed against a target o f 90). The success o f the EPPR can also be measured in institutional terms, as it has fostered a decentralized approach that includes a high level o f delegation at the regional level. Five independent and not-for-profit regional agencies were created (AGAB or Agence d'Appui a m Initiatives de Base), whose boards comprise representatives o f NGOs, government, and civil society. To ensure consistency o f approaches among the regions and coordination with national institutions, a National Liaison Bureau (Bureau National de Liaison, BNL) was established. This Bureau was transformed into the TS o f the CDP. 4. PROPOSED CHANGES 23. Project Development Objective. The proposed additional grant would support the expansion o f the Community Development Project and its broad objective to provide poor communities with socio-economic infrastructures and income generating activities by financing (i) community nutrition interventions targetingprimary school children; and (ii) costsassociatedwithincreasingtheproductionofcereals.Moreover,theCDP the will realign the focus o f its operations to accommodate the emergency needs o f flood affected areas. The PDO o f the parent project i s "to provide poor communities with improved basic socio-economic infrastructures and income generating activities by financing at least 350 subprojects to be identified and implemented directly by communities." As part o f the restructuring requiredfor the additional financing, the PDO will be amended to add the words "among others" after "by financing." Hence, the revised PDOwould read as follows: "To provide poor communities with improved basic socio-economic infrastructures and income generating activities by financing, among others, at least 350 subprojects to be identified and implemented directly by communities.'y This change will still leave a measurable outcome in the PDO but allow the recently established TS to directly implement activities, such as the proposed School Feeding Emergency Operation and the Enhanced Domestic Cereal Production component, which will both support the achievement o f the PDO, in particular by improving the services offered by basic socio-economic infrastructures such as schools 6 (through the school feeding operation), and by supporting income generating activities, by providing agricultural inputs (fertilizers and improved seeds). It will also allow strengthening the focus on flood-affected areas. 24. Project Components. The proposed additional financing o f US$7 million will support: (i) School Feeding Emergency Operation sub-component under Component 1 a (Community Development); and (ii)a new Enhanced Cereal Production component (Component 4). As a result, the CDP will now be structured as follows: Component 1: Community Subprojects (US$14.5 million rather than the original US$12.5 million) will now have two sub-components: o Communitv Development Sub-Proiects (US$12.5 million) is unchanged and will continue to facilitate beneficiary access to improved health, education, water and sanitation, and other socio-economic infrastructures (200 sub- projects) as well as to income generating activities (150 sub-projects), o School Feeding Emergency (heration (US$2 million) is added as a sub- component and will support the preparation and distribution o f daily lunches to 16,800 primary school students in 84 schools, over two school years, beginningwith the 2008-2009 school year. 0 Component2: Training(US$1.7 million) will remainunchanged. Component 3: Managementand Operating Costs (US$3 million) will remain unchanged, as the incremental management and operating costs o f the new activities are already included intheir respective budgets. Component 4: Enhanced Cereal Production component (US$5 million) is new and will support the purchase and delivery o f inputs to increase the domestic production o f cereals with the objective o fproducing about 14,000 additional tons o fmaize bythe end o f 2009? This component will have two sub-components: o Procurement and distribution o f fertilizers and improved seeds (US$4.4 million) will support costs associated with the urgent procurement o f 4,275 metric tons o f fertilizers and o f 356 tons o f commercial improved seeds. Both fertilizers and seeds will be distributed to 14,000 selected food-crop producers. This sub-component will also finance the production and distribution o f 14 tons o f foundation seeds (maize, rice and sorghum) in2009. o Coordination and technical support (US$0.6 million) will finance capacity building activities within the MAFL to facilitate proper project implementation and supervision. Expenses will include the purchase o f This component is complementary to the objective o fcomponent 1to support 150income generating activities at the community level, as it i s expected that most o f such activities will be o f an agricultural nature and will therefore benefit from improved access to agricultural inputs. 7 motorcycles, computers, communication equipment as well as operating expenses o f the regional and prefectural agencies o f the MAFL. This sub- component will also support the design o f a sustainable system to deliver and distribute fertilizers and seeds. 25. Targeting. 47 percent o f the resources available under the Community Development Sub-projects sub-component o f the CDP (i-e., US$5.9 million) are reserved for the regions o f Maritime and Plateaux, which were recently affected by the floods. Within these regions, preference will be given to the hardest hit communities that are expected to account for approximately 75 percent o f the sub-projects, equivalent to about 130 sub-projects (US$4.4 million). In the case of the School Feeding Emergency Operation, the project will identify 84 primary schools o f which at least 39 will be inthe two flood-affected regions. To identify the specific schools to be targeted by the program, the TS, the AGAIB and the Regional Department o f the Ministryo f Education will prepare by October 24, 2008 a list o f schools based on the following criteria: (1) schools in the communities adversely affected by recent floods; and (2) schools in the communities most affected by the food price crisis. Among schools falling under criteria 1and 2, prioritywill be givento (a) schools that have been financed by the LICUS under the EPPR; and (b) schools covered by the CDP. It is estimated that between the parent project and the additional financing, the Bank will provide more than US$5 million in response to the floods.6 26. Inthe case of the Enhanced Cereal Production component, the regional and the prefectural directorates within the MAFL (respectively known as DRAEP, Directions Rbgionales de I'Agriculture de I'Elevage et de la Pkhe and as DPAEP Directions Prb'ectorales de 1'Agriculture de 1'Elevage et de la Pgche) will be responsible for selecting the beneficiary producers by November 30, 2008. In order to maximize the impact o f this program, beneficiaries will be selected on the basis o f their productivity, with priority given to the 10 most productive farmers in each producer association. The operation will include approximately 280 associations in each one o f the five regions, for a total o f 14,000 beneficiaries. 5. IMPLEMENTATIONARRANGEMENTS GENERAL 27. Implementation. The existing oversight and implementation structures o f the CDP will be used for the additional financing. In addition, the approaches and arrangements outlined fbrther below will be adopted. 6Incollaboration with the Togolese authorities, Bank staff is also preparing a US$1million application to the LICUS TF to scale up the financing o f an existing community project implemented by AGAIB Maritime. Ifapproved, the total contribution o f the Bank response to recent floods will be more than US$6 million. 8 28. Results framework. It is proposed that the results framework o f the original project be adjusted to include new indicators related to school feeding and cereal production (see Annex 1). Inparticular, under the School Feeding Emergency Operation the objective is to serve daily lunches to approximately 16,800 primary school students in 84 schools in targeted areas over two years, starting with school year 2008-2009. Under the Enhanced Cereal Production component the main objective is to increase domestic cereal production, inparticular maize, by 14,000 tons in2009, while setting the basis for a new and sustainable delivery system for agricultural inputs. 29. FinancialManagement and Disbursements. The TS is primarily responsible for the overall coordination and financial management o f the CDP, and will maintain responsibility also for the additional financing. The TS will be responsible for: (i) managing the designated accounts (see below) to be opened in a commercial bank; (ii) preparing an acceptable consolidated annual financing statement to be audited according to international standards; (iii)preparing the project Interim Un-Audited Financial Reports (IFR); and (iv) preparing withdrawal applications to be submitted to the World Bank. As more than 60 percent ofthe Grant proceeds will beusedon a single contract to purchase fertilizers, the Direct Payment method will be used for this transaction. All other disbursements will be transaction-based. Funds made available for the additional financing will pass through two new designated accounts (Designated Account C for school feeding and DesignatedAccount D for cereal production), which will be managed bythe TS. 0 DesignatedAccount C: The ceiling for the designated account will be CFAF 100 million (about US$232,000), approximately four months worth o f expenditures. Funds will flow to the selected NGO accounts with appropriate supporting documentation. 0 Designated Account D: The ceiling for the designated account will be CFAF 120 million (about US$279,000). The designated account would be used for all payments inferior to twenty percent o fthe original deposit. 30. Transaction-supported documentation for Statements o f Expenditure (ifused) will be retained by the TS that has the primary responsibility for maintaining all documentation. Annex 2 presents a graph with the proposed flow o f funds for the additional financing. 31. The TS will be responsible for updating the financial audit TORand the contents o f the IFR by the end o f October 2008 to accommodate the changes necessitated by the additional financing. All other disbursement arrangements, including disbursement methods, withdrawal o f financing proceeds, and reporting on use o f financing proceeds, will remain unchanged. Budgeting, reporting, accounting arrangements and auditing procedures will also remain unchanged from the original CDP project. 32. Procurement. Procurement for the proposed additional funding will continue to be carried out in accordance with the World Bank's "Guidelines: Procurement under 9 IBRD Loans and IDA Credits," dated May 2004, revised in October 2006; and "Guidelines: Selection and Employment of Consultants by World Bank Borrowers, " dated May 2004, revised in October 2006, and the provisions stipulated inthe Financing Agreement. For each contract to be financed by the Grant, the different procurement methods or consultant selection methods, the need for pre-qualification, estimated costs, prior review requirements, and time frame are agreed between the Borrower and the World Bankproject team ina SimplifiedProcurement Plan. The Simplified Procurement Plan will be updated at least every six months or as required to reflect implementation progress and improvements in institutional capacity. As mentioned earlier, more than 60 percent o f the grant proceeds will be used to purchase fertilizers. Given the emergency nature o f the project and the need for quick delivery (in time for the next planting season), it has been agreed that this good will be procured through Limited International Bidding(LIB),usinglists o fpre-qualified supplierswith a good track record. 33. Project costs. Project costs will change, as reflectedinthe following table: Table 2: Project Cost by Corn ponent Orig inalCDP With AdditionalFinancing ProjectCostsby Component Total Ofwhich TotalUS$ million Of US$ IDA Which million IDA 1,Community subprojects 13.08 12.50 15-08 14.50 2. Training 1.70 1.70 1.70 1.70 3. Management/operating costs, 3.00 I 3.00 & audits 3.00 I I 3.00 4. Emergency interventions to 0.00 increase food production Total Proiect Costs 17.78 17.20 24.78 24.20 34. Allocation of Grant Proceeds. Allocation o f grant proceeds including additional finding will change, as reflectedinthe following table: I Amount o f the Grant Amount o f the Grant Percentage of Allocated (inUS$) Allocated (inUS$) Expenditures to ORIGINAL ADDITIONAL be Financed 1- Goodsandworks 750,000 4,350,000 100 (a) Project implementing 150,000 0.00 100 entities (b) Technical Secretariat 600,000 4,350,000 100 2- Subprojects 11,250,000 1,700,000 100 (a) Project implementing 11,250,000 I 0.00I 100 10 entities (b)Technical Secretariat 0.00 1,700,000 100 3- Consultant andTraining I 2,800,000 I 150,000 I 100 I (a) Project implementing 2,050,000 0.00 100 entities (b) Technical Secretariat 750,000 150,000 100 4- OperatingCosts 700,000 200,000 100 (a) Project implementing 450,000 0.00 100 entities (b) Technical Secretariat . , 250,000 200,000 100 5- Unallocated 1,700,000 600,000 100 Total 17,200,000 7.000,OOO 100 35. Disbursementschedule. The disbursement schedule o f grant proceeds including additional funding will change, as reflected inthe following table: I Additionalfinancing.estimateddisbursements(USSm) I Annual 4.20 2.50 0.20 0.10 Cumulative 4.20 6.70 6.90 7.00 Annual 8.70 7.00 5.20 3.30 Cumulative 8.70 15.70 20.90 24.20 36. For more information regarding Financial Management Arrangements, please refer to the Financial and Fiduciary Analysis under Section VII, Appraisal Scaled-up Project Activities. SCHOOL FEEDING EMERGENCYOPERATION 37. Approach. InTogo there are basically no formal school canteens. Children are usually given a small allowance by their parents to buy meals prepared and sold by members o f the community (referred to as mamans). This system, which is common throughout West Africa, i s relatively efficient but i s becoming increasingly expensive because o f the food price crisis. By the end o f the 2007-08 school year, the cost o f a basic meal (e.g., 120 grams o f rice with fish sauce) had increased by almost 50 percent. The proposed approach will be based on the existing informal system o f the mamans, and on a system o f vouchers to be managed by the implementingpartners. The system o f the mamans, as it i s well-tested and reasonably efficient, i s far less expensive than building and running formal canteens, and generates additional income that remains in the community. In addition, the time needed to set up a school feeding program will be far shorter usingthe existing mechanismthan establishing a new system. This approach will also leverage the strong experience o fParent-Teachers Associations (PTAs) and NGOs in managing and supporting rural schools. And the training provided to ensure compliance 11 with standards in terms o f quantities, nutritional contents and safety will have benefits that will go well beyond the school walls. 38. Overall responsibility. This sub-component will be under the overall responsibility o f the Ministry o f Cooperation, Development and Regional Planning, and will be led by a Steering Committee that will provide general guidance for the operation and will monitor its progress. The Steering Committee will comprise representatives from the four concerned ministries (Education; Cooperation, Development and Regional Planning; Social Affairs; andHealth), plus a representative o fthe TS. 39. Management and implementation. The TS7will be responsible for day-to-day management, managing the Designated Account, and selecting and recruiting the NGOs (agences d'encadrement). This will be done incollaboration with the regional AGAIBs which will bring their local expertise and will participate in the selection o f the NGOs. NGOswill be responsible for organizing and implementing school feeding inbeneficiary schools. Support from NGOs will be both technical and financial, as they will deliver subsidies (see below) to the existing informal system o f mamans. NGOs inTogo are well established and well organized, with umbrella associations at the regional and national level. They also have a well-established track record, inmany cases replacing the State in the provision of services at the community level (e.g., education, health, nutrition, agricultural extension). The AGAIBs have a long working experience with NGOs. 40. Selection of NGOs. NGOs will be selected following Bank procedures, in particular QCBS procedures as per Chapter 2 o f the WorldBank's Guidelines: Selection and Employment of Consultants by World Bank Borrowers dated May 2004, revised in October 2006, and the provisions stipulated in the Financing Agreement. Given the nature o f the operation (emergency) and the fact that NGOs will implement this sub- component, the guidelines on Selection o f Particular Type o f Consultants will apply, in particular section 3.16 (use o f Non-Governmental Organizations) and 3.10 (Single Source Selection). 41. Supervision and support at the school level. The local Parents-Teachers Association (PTA) will help ensure that the program i s adequately and transparently managed and implemented at the school level. The PTAs will distribute the vouchers to the children before each lunch. The PTAs will also monitor meal quality and quantity. PTAs inTogo are strong and well-established, and are organized inregional associations and a national association. Because o f the protracted institutional and governance crisis, PTAshave played a major role inorganizing, financing and staffing schools, mostly on a voluntary basis. 7The TS o f the CDP was establishedby a Ministerial Decree on June 11,2008, and it i s the evolution o f an existing body, the National Liaison Bureau, which has been in existence for more than two years. The TS is staffed with a Coordinator, a Procurement Specialist and a Financial Specialist, all recruited following Bank procedures. The TS is being equipped with computers and software to manage financial resources, and staff has received training in Bank procedures. An Internal Auditor and an M&E Specialist are also being recruited. A full Project Implementation Manual was prepared by the borrower, and no-objection was sent on August 18,2008.. 12 42. Preparationand distributionof meals. Mamans will prepare the meals on the basis o f a weekly menuthat will be agreed by the PTA, the NGO, local representatives o f the Ministry o f Education and the mamans, during a meeting every two weeks. The menu will consider the local availability o f food products, overall caloric content and the need for a balanced diet. The mamans in the program will be trained and supervised by the NGOs. Training will include compliance with basic food safety and hygiene norms as well as basic accounting andbusiness management. Ultimately, compliance with food handlingnorms will fall under the responsibility o ftheNGO. 43. Voucher system. Each morning, after recess, members o f the PTA will give a voucher to each child to be used at lunch time to buy their meals from the mamans. At the end o f the week, the mamans will present the vouchers they have received to the NGO and collect their payment. The value o f a voucher will be the same in all the participating communities and during the entire school year. The value will be decided by the Steering Committee in consultation with the NGOs and the regional education authorities. Once the school feeding system has been organized (e.g., mamans and PTAs trained, responsibilities clearly identified), the TS will transfer enough funds to the NGOs to cover three months worth o f vouchers for the schools under their responsibility. Funds will be replenished on the basis o f implementation reports prepared by the NGOs and countersigned by PTAs and school representatives, as well as o f ad hoc site supervision carried out by the Steering Committee with the support o f the TS and o fthe AGAIBs. 44. Timeline. Upon approval o f the additional financing and the signature o f the legal documents, the TS will transmit for the Bank's non-objection the proposed Operating Guidelines for this sub-component, which will complete the existing Project Implementation Manual. Such guidelines will be transmitted within 30 days from the signature o fthe legal agreements. It i s expected that the program will be launched by late October 2008, and rununtilthe end o fthe 2008-2009 school year. The TS will then be in charge o f carrying out an interim assessment o f the operation and recommending any changes deemed necessary to improve performance o f this sub-component for the 2009- 2010 school year. Once approved, such changes will be integrated in the Project Implementation Manual. InJune 2010, after the end of the second school year, an overall assessment o f the Operation will be carried out by the TS. The lessons learned will then be reflected in the national education sector plan, to be supported by the Education For AlVFast Track Initiative (EFMTI), which will include a national school feeding program. ENHANCED CEREALPRODUCTION 45. Approach. Cereals' prices have been rising steadily in Togo over the past two years, due to global and local conditions. Productivity inthe agricultural sector has been stagnant, and use o f fertilizers and improved seeds inTogo is limited. Therefore, actions to stimulate investments in improved agricultural inputs are needed, and will lead to substantial gains in domestic cereal production. The approach o f the component i s to boost the use o f these inputs to double the average yield o f maize per hectare among 13 beneficiaries. The project will also support the MAFLindesigning sustainable long-term mechanisms to increase productivity inagricultural production. 46. Overall responsibility. This component will be under the overall responsibility o f the Ministry o f Cooperation, Development andRegional Planningand o f the MAFL. 47. Management and implementation. This component will be implemented by the MAFLwith the support o f the TS, which will play the role o f fiduciary agency, with responsibility for the procurement and financial management o f the activities as suggested by the MAFL. The MAFL with the support o f the TS will, among others: (i) plan, program, and budget the activities to be financed; (ii)manage partnerships with public and private delivery agencies and producer organizations; (iii)supervise and control field activities; (iv) carry out monitoring and evaluation activities; (v) ensure compliance with environmental and social safeguards; (vi) prepare bi-annual periodic progress reports; and (vii) carry out the Mid-Term Review and an independent assessment o fproject outputs, outcomes ando f overall implementation. 48. Procurement and distribution of fertilizers. By the end o f 2008, the project will procure about 4,275 tons o f fertilizers (2,850 tons o f NPK 15-15-15 and 1,425 tons urea 46 percent). The TS, with support from the MAFL and from the state procurement agency for agricultural inputs, CAGIA (Central d'Achat et de Gestion des Intrants Agricoles), will be responsible for preparing and launching Limited International Bids that should be completed by November 30, 2008. CAGIA will be responsible for delivering the stocks. The TS, with the support o f CAGIA, will select and hire contractors to transport the fertilizers to warehouses throughout the country. CAGIA with the collaboration o f the DRAEP-DPAEP and o f the state agency responsible for agricultural extension services, ICAT (Institut du Conseil et de 1'Appui Technique), will carry out the distribution o f fertilizers to the 14,000 selected producers, following the existing distribution system. 49. Procurement and distribution of improved seeds. By the end o f 2008, this component will also finance the local purchase o f 356 tons o f improved seeds with the technical support o f ICAT (Institut du Conseil et de 1'Appui Technique). ICAT will prepare a list o f reliable seed multipliers,which will then form the basis for a competitive selection by the TS, with the support o f the MAFL and specialized agencies, such as ITRA (Institut Togolais de RechercheAgronomique), the Togolese Agricultural Research Institute. To enhance the impact o f the fertilizers delivered by this component, the commercial seeds will be distributedto the same 14,000 selected producers receiving the fertilizers. The project will also provide support for the production o f 14 tons o f foundation seeds (maize 10, sorghum 1, and rice 3) in 2009. This will lead to the production o fmore than 1,400 tons o f improved seedsby seeds multipliers inFY2010. 50. Sustainability. The cost recovery system for fertilizers and seeds' currently being used by Government authorities will be followed also under the proposed After harvest the producers will sell part o f their stocks following the same procedures that are currently in use. Harvest collection is implemented in the Prefectures by local committees consisting of 14 additional financing. Relevant institutions and agencies such as CAGIA, OSAT (Obsewatoire de SdcuritdAlimentaire du Togo) andITRA under the overall responsibility o f the MAFL, will be implementing such system, with the purpose o f ensuring that the project outcomes are sustainable and can lead to increased production o f cereals beyond the scope o f the activities financed by this sub-component. In particular, the funds recoveredwill be deposited in a special account opened by the TS ina commercial Bank. By no later than December 2009, the Government o fTogo will prepare a proposal on the use o f such funds, for Bank approval. 51. Regional best practice. Component 4 draws on experience from other similar operations in Africa. Project design is based on projects currently being prepared or underway in Benin and Niger,g which involve the purchase and distribution o f agricultural inputs. As inthe project inBenin, project design leverages innovation inthe private sector to manage the transport and distribution o f fertilizers and seeds. Moreover, the choice o f inputs and proposed seed quality control measures are based on standards consistent with regional best practice. Technical assistance, particularly the study to identifysustainable mechanisms for the delivery o f agricultural inputs, will draw on lessons learned from prior programs throughout the Africa region, particularly in BeninandRwanda." 52. Coordination and technical support. The project will support the MAFL in carrying out the required coordination activities. It will purchase motorcycles, supplies and equipments to be used by the MAFL and by the DRAEPDPAEP inmonitoring and evaluating activities, and will finance selected operating costs, including communication and supervision missions. This component will also finance a study on improved mechanisms to ensure the delivery o f keypriority agricultural inputs and services to food crops producers, as well as technical and financial audits. 53. Timeline. Procurement o f most o f the goods under this component will be launched before the end o f 2008 and the fertilizers will be distributed on time for the upcoming agricultural season, starting March-April 2009. Procurement o f commercial seeds will proceed in parallel with that o f fertilizers, while the multiplication of foundation seeds will be completed after the following agricultural season, inmid2010. 6. CONSISTENCYWITH INTERIMSTRATEGY NOTE (ISN) 54. The Bank's support to the Government reform strategy is outlined in the Interim Strategy Note (ISN) for the period FY08-FY10, which was discussed by the Board on representativesof OSAT, CAGIA, andDPAEP. Through producer organizations, each producer will sell at least enoughof hidher harvest to repay the fertilizer credit. The representativeof CAGIA will recover the credit fimds, while the rest will be paid to the producer. Followingthe current pricing policy of the Government, producers will be subsidized for about 30 percent of the market price for fertilizers and improvedseeds. 9Niger FoodSecurity& Social Protect(Project IDP102582). loRwandaRuralSectorSupportProjectI(GrantNos.IDA-34830,-3483A, and-Q2580 ,andTF-24967) andI1(Project IDP103298) 15 M a y 29, 2008. The over-arching goal o f this I S N is to help Togo recover from a long period o f instability and suspension o f aid and beginlaying the foundations for sustained, shared growth over the medium tern. This will be achieved through: (i)support for the normalization o f relations with the World Bank Group through the clearance o f arrears; (ii)assistance to improve public financial management and governance inkey sectors and public institutions; and (iii) assistance to address critical social needs on the ground. The I S N aims to set realistic expectations with regard to the progress that can be realized over the next 24 months. To achieve its goal, the I S N aims to work in concert with other partners and domestic stakeholders, and i s based on three interrelated themes that are fully consistent with the Government I-PRSP objectives to improve governance and transparency (Pillar 1); promote return to private sector-led growth (Pillar 2); and provide for urgent social needs (Pillar 3). 55. The rationale o f the CDP, approved by the Board on June 26, 2008, i s to: a) respond to the social and economic crisis; b) support the I-PRSP priorities and the Bank ISN; c) capitalize on the good experience gained with the EPPR; and d) continue strengthening regional institutions in support o f local economic and social development. The Project i s fully consistent with the new ISN, as well as with the overall framework presented in the Global Food Crisis Response Program (GFRP), endorsed by the Board on M a y 29, 2008. In particular, the I S N Emergency and Recovery timeframe (May 2008-June 2010) includes under Pillar No. 3 (urgent social needs) a new community- driven development operation (CDD - US$17.2 million IDA Grant) to scale up the LICUS EPPR. 7. APPRAISAL OF SCALED-UPPROJECT ACTIVITIES 56. Economic Analysis of the School Feeding Emergency Operation. Community-based safety nets have provento be successful inmany developing countries, and school feeding programs are now widely implemented across Sub-Saharan Africa including in Ghana, Mali and Ivory Coast. The economic benefits go well beyond the immediate substitution effect o f providing meals to children at subsidized prices. In fact, poor households will save on the daily allowance given to the child to buy a meal and will have the opportunity to use such savings for productive purposes or, more likely, to improve overall household nutrition levels. Enrollment, attendance and completion rates at beneficiary primaryschools will most likely improve, particularly inthose areas where such rates are low inpart because o f highpoverty levels andhighfood vulnerability. 57. Economic Analysis of the Enhanced Cereal Production component. The emergency and short-term nature o f the operation makes it difficult to carry out a proper economic analysis. The economic impact o f increased provision of fertilizers and improved seeds, however, i s expected to be positive and significant. The productivity o f food crops and, therefore, food supply should increase. The improvement incereal yields should result in higher farmer revenues outpacing the marginal cost associated with the purchase o f fertilizers, especially given the subsidized prices. Inaddition, the technical 16 assistance provided will help identify sustainable mechanisms for the delivery o f agricultural inputs, thereby laying the basis for mediumto long-term benefits. 58. Fiduciary Assessment. Fiduciary responsibility for the additional financing will remain with the TS o f the CDP. As with the original financing, financial management risks for the additional financing are expected to be high primarily because o f the conditions prevailing in the country: (i) the governance and transparency system at all country levels remains weak; (ii) public expenditure management has suffered from a distorted budget cycle and problems in expenditure execution; (iii)the control environment with an internal audit system i s not fully effective and an external audit body i s not established; (iv) there have been delays in executing public expenditures due to lack o f accountability and capacity; (v) the Treasury management system i s inadequate and not transparent; and (vi) the management o f the project requires the careful coordination o f multiple actors, such as public agencies, community associations and civil society organizations. 59. Within the Project, financial management (FM) risks are being mitigated by enhancing the control environment (the FMAssessment conducted for the parent project, the Community Development Project are detailed in Annex 3.) This includes the following measures: e The TS has been established and staffed with qualified specialists including a procurement specialist, a financial specialist and an internal auditor to ensure that sound FM, procurement and control mechanisms are maintained throughout the life o f the project. A computerized accounting system has been set up in the TS to allow for close monitoring o fproject FMimplementation. Semi-annual FM supervision missions will be carried out and the FMcapacity o f project staff will be strengthened accordingly. e Technical audits will be carried out annually thus providing opinions on the performance o f activities financed by the additional financing. e External audits will be undertaken at least annually to verify the appropriate use o f funds. e Joint annual reviews o f all project executing units will be organized by the Bank in coordination with the TS to assess project performance and offer recommendations. 60. EnvironmentalAnalysis. From an environmental and social safeguard point o f view, both the parent project and the proposed additional financing are classified as a Category B project." That is, the environmental and social impacts o f the project, for the 11The parent project, the CommunityDevelopment Project (CDP), poses a numbero frisks which are not relevant to activities under the additional financing. The Involuntary resettlement safeguard is triggered under the activities for the parent project, as community subprojects may include the construction of community buildings, thus necessitating some relocation. Similarly, a community might also construct a healthpost, thus requiring the ESMFto propose mitigationmeasuresrelatedto medical waste management. 17 most part, are expected to be minimal, site-specific and manageable to an accepted level. A new safeguard policy is triggered in addition to the original two (the Environmental Assessment policy and the Involuntary Resettlement policy): the Pest Management Policy (OP 4.09)). While the additional financing will not be used to purchase pesticides directly, it i s likely that the activities under Component 4 (provision o f seeds and fertilizers to increase cereal output) will lead to an increased use o f pesticides, thus triggering the Pest Management Safeguard. To ensure that sub-projects are environmentally sustainable and that any possible negative environmental or social impact is minimized and mitigated, an Environmental and Social Management Framework (ESMF) i s being prepared to be used by the CDP after approval by ASPEN. The ESMF will include a simplified Pest Management Plan (PMP). The aim is to anticipate such impact and, when unavoidable, to mitigate it. The ESMF will be disclosed in Togo and at the Bank's Infoshop within six months o f effectiveness in line with OP 8.00. To ensure effective implementation o f the ESMF, the CDP and the additional financing will support relevant training, which will be detailed in the ESMF. Training topics might include environmental screening o f sub-projects; how to plan, implement and monitor mitigation measures; national environmental legislation; the purpose o f the Bank's safeguard policies; and environmental issues facing Togo. The TS will oversee the implementation o f the ESMF and ensure that appropriate resources are made available inthis regard. 61. Social Analysis. There i s ample evidence that community-based approaches are particularly suited in fragile states, as they make it easier to leverage the strengths o f actors who are often marginalized in development projects, such as civil society and grassroots communities. Thanks to their involvement inimplementing the EPPR, the TS and partners such as NGOs and PTAs are experienced in adapting project guidelines to local circumstances, thus ensuring that local dynamism and assets are harnessed while taking into account indigenous norms and customs. In addition, the extensive consultations held for the preparation o f the CDP with NGOs, CBOs, development partners, government officials and civil society, complemented by poverty assessments and surveys (e.g., the QUIBB)have provided insights into the underlying socio-cultural, institutional and political context, and in particular on the roots o f the social and institutional crisis, as well as the constraints and opportunities posed by the current context for conducting the proposed activities. 62. The approach selected for the School Feeding program, which relies on the well respected, indigenous maman system, i s mindful o f the advantages o f building on an existing mechanism not only in economic terms but also interms o f social acceptability - something all the more important when the ultimate beneficiaries are children in remote rural villages. The major concern with this program i s the expectations that it might produce within the population. As an emergency operation, the School Feedingprogram has a limited two-year life. It will have to be clearly communicated to beneficiary communities that assistance will have a limited duration o f two years. With regards to the Enhanced Production o f Cereals component, there may be some negative impact on communities, due to the distributional effects that this component will put in motion. In fact, targeting the most efficient producers (both crops and seeds), who are usually the 18 most entrepreneurial members o f the community and are likely to be better off, may well increase inequality and generate resentment among non-beneficiaries. It will have to be clearly communicated that the assistance provided by this component i s expected to generate a trickle down effect benefitting the majority o f community members and that the primary objective o f the component is to increase domestic production o f cereals. Similarly, selection criteria will have to be clearly explained and easily verifiable. 8. EXPECTEDOUTCOMES 63. Given the emergency nature o f this additional financing, the outcomes are measured by the achievement o f specific targets. Inparticular, under the School Feeding Emergency Operation the objective i s to prepare and serve daily lunches to approximately 16,800 primary school students over two years, starting with school year 2008-2009. This should contribute to lower malnutrition levels and better educational outcomes among beneficiaries. Under the Enhanced Cereal Production component, the objective i s to purchase and distribute certified seeds and fertilizers. This should result in increased cereal availability on local markets and help contain food prices. 64. Another outcome o f the project will be institutional strengthening. On the one hand, the implementation structure o f the CDP will be reinforced. On the other, the MAFL and of some of its specialized agencies will receive capacity building support, especially for the identification and planning o f a sustainable delivery system for agricultural inputs. In both cases the additional financing will support the ongoing transition towards greater transparency, accountability and delegation o f powers inpublic finance management and investments. 65. An update o f the Results Framework, detailing the expected outcomes, is provided inAnnex 1. 9. BENEFITSAND RISKS 66. Benefits. As was the case under the EPPR and the CDP, the main target population under the Project will be poor rural communities. A cost-benefit analysis o f the Project i s not feasible at this time due to lack o f data and to the emergency nature o f the proposed operation. However, as part o f the Mid-Term Review o f the CDP, the TS will conduct an analysis o fthe costs andbenefits related to the additional financing. 67. Risks. The overall project risk rating is assessed as substantial. Other project risks andmitigating measures are listed inthe following table: Table 5: ProjectRisk andMitigationMeasures Type of Risk I Risk I Risk Mitigating Measures I Residual I 19 Ethnic, political and H Staff will be trained inthe use o f project tools. All M social dynamics perturb partners to be made aware o f the targeting project implementation mechanisms, and o f respective roles o f project and compliance with entities. guidelines. Relianceon different S The internal control environment will be actors, includingNGOs strengthened, the internal auditor will carry out M with limitedFMand internal audits based on risk approach and the procurement capacity, implementation o f audit recommendations will be may cause fiduciary followed up. breaches, All staff will be trained inthe use o f project tools (software, manual o f procedures, etc) and Bank fiduciary procedures. Resource transfers will be well-documented and supervision missions will be conducted frequently. A further escalation of Continuous monitoring o f the food price situation M food prices offsets the will allow the timely readjustment o f objectives benefits o f the project. and indicators o f the additional financing. Additional financing could also be mobilized depending on the crisis levels. Selection o f Implement communications campaign to explain: M beneficiaries under the a) Emergencynature o f the Project additional financing b) Projecttimeline (schools and beneficiary c) National framework o f sustainability (EFA-FTI producers) may create and Agricultural Strategy tension between and inside communities. Fertilizer use by farmers Fertilizer distribution will be accompanied by M may generate negative information and education activities regarding the health effects. safe handling: o f fertilizers. 20 Increased agricultural S A simplified Pest Management Plan will be M productionmaytrigger includedinthe ESMF. higher levels of pesticide use, thus causinghealthand environmental problems. Sickness due to unsafe M As part of their TOR, implementingNGOs will L food handling inSchool educate cooks on proper food handling and will FeedingActivities. conduct spot tests to ensure that meals prepared meet food safe& reauirements. 10. FINANCIALTERMS AND CONDITIONSFORTHE ADDITIONAL FINANCING 68. For each category o f the Financing Agreement the disbursement percentage will be 100percent. 69. There are no conditions of effectiveness. 70. As specified under Schedule 2, section IVYB.1. there is one condition o f disbursement for the cereal production component, which is that the TS transmit for Bank no-objection the operating guidelines of the Enhanced Production o f Cereals component. Such guidelines will be prepared by the TS with the support o f the MAFL, and transmitted within one month of project approval. As described in Schedule 2, section I, B and Cydated covenants include the preparation o f operating guidelines for the School Feeding Emergency Operation andpreparation of an annex to the ESMF with the PMP. 21 TOGO: Community Development Project (CDP) - AdditionalFinancing(FPCR TF) ANNEX 1:RevisedResultsFrameworkandMonitoring With the new focus on child nutrition and food production, two additional results indicators have been added to the results framework. The additional project outcome indicators track the number o f participants in nutrition related activities, the quantity o f cereals delivered, and number o f farmers benefiting. The arrangements for results monitoring o f the additional financing will be part o f the additional guidelines to be prepared bythe TS with the support o f the MAFL. A. ResultsFramework ResultsIndicators The PDO is to Repartitiono f financing o f subprojects Gauge whether Project is effective in provide poor consistent with regional targeting mobilizing communities. communities criteria as estimated by the QUIBB2006 with improved Baseline: 0 Gauge whether subprojects reflect basic socio- Target: Variancebetween QUIBB2006 community priorities. economic repartition and actual allocations by infrastructures region is less than 10% (Year 3) and income # of new subprojects hnctioning one Draw lessons for Bank work inother generating year after completion emergency situations. activities by Baseline: 0 financing among Target: Yr2: 45; Yr3: 153; Yr4: 261 others at least # o f communities that following 350 subprojects sensitization and training have then to be identified presented a proposal, which was and implemented approved by the AGAIB approval directly by committee. communities. Baseline: 0 Target: 350 (Year 4) Minimumi$o f subprojects which reflect the priorities of targeted communities and beneficiaries at MTR and at end o f project Baseline: 0 Target: MTR 150; end ofproject 280 22 IntermediateOutcomeIndicator imunityDevelopmentProjectsand School1 Outcome 1: # o f basic socio-economic infrastructure Communities usingkontinuing to use At least 200 subprojects completed CVD/CDD process for local decision basic socio- Baseline: 0 making outside o f Project activities. economic Target: 200 (Year 4) infrastructure # of income generating activities subprojects and subprojects completed Assess AGAIB efficiency inachieving 150income Baseline: 0 results on the ground. generating Target: 150 (Year 4) activities # o fpeople directly involved innew or subprojects improved income generating activities To increase the engagement between completedby the Baseline: 0 beneficiary communities and local end o fthe Target: 1500 (Year4) authorities. project # o fbasic socio-economic infrastructures assessedas having satisfactory technical quality at MTR and at end o fproject based on random sampling Baseline: 0 Target: MTR 75; end ofproject 160 Additional activities: Meals provided to pre-school and primary students (number): To inform on the state o f the support o f Baseline: 0 pilot nutritionalactivities such as Target: 2,352,000 (assuming 140school school feeding activities days, 84schools and an average of 200 childrenper school) To informon the evolution o f the Pre-school and primary students floods-affected areas targeted by the receiving at least one mealper day CDP (number) Baseline: 0 Target: 16,800 (assuming 84 schools and 200 children on averageper schoolyear) # o f sub-projects targeting floods affected communities inMaritime and Plateaux Baseline: 0 Target: 130 # o f schools served by the Project Baseline: 0 Target: 84 (average 200 childrenper school) 23 CVD are inclusive (at least 25% of the To develoD self-reliance to access membersare women, well- resources, advocate for needs, and representative and well-trained interact with national and local Baseline: 0% authorities. Target: 90% (Year 3) # o f CVD members successfully trained Baseline: 0 Target: MTR 1020; End of project 2,100 No additional activities 0 AGAIB Projectmanagement expenses To measure the efficiency o f AGAIB's as a % o f disbursementsfor subprojects operations. Baseline: 0 Target: Below 15% Committee and 0 # o f IFRsubmittedby AGAIB to the TS on a monthly basis, within 15 days following the end o fthe month functioning Baseline: 0 Target: 60 monthlyreports a year sent to the TS bythe AGAIB 0 # of IFRsubmittedby TS to the Bank within 45 days from the end o f each quarter Baseline: 0 Target:4 IFRa year sent bythe TS to the World Bank No additional activities 24 Outcome4: To measure the scale o f the agricultural Agricultural farmers (Tons) production effort to face the crisis inputs are Baseline:0 purchased and Target:4,275 metric tons in2009 distributed in Quantity o f commercial seeds view o f distributed producing Baseline:0 14.000 tons o f Target:356 tons in2009 additional maize Producers receiving fertilizer (number) produced by the Baseline:0 end o f second Target:14,000 producers year o f project Quantity o f foundation seeds distributed implementation Baseline:0 Target: 14 tons in2009 Seeds procured and distributed to farmers (tons) (Includes both commercial and foundation seeds) Baseline: 0 Target: 370 tons in2009 Note:The Project management expensesofAGAIB refers to expensesincurred bythe AGAIB on account o f Project implementation, management and monitoring, including office space rental and security guard services, utilities and supplies, bank charges, communications, vehicle operation, maintenance and insurance, building and equipment maintenance costs, in-country travel and supervision costs, salaries of all staff and staff training inTogo; all are financed out o f the proceeds o f the Grant. 25 TOGO: CommunityDevelopment Project(CDP) -Additional Financing(FPCR TF) 1 b. Resultstracking Data TargetValues Collection and Reporting 2012 Outcomeindicators 2010 2011 End Of Frequency Project and Reports Repartition of financing of subprojects Annual reports consistent with regional targeting criteria I Iand MTRreport as estimated by the QUIBB2006 - Variance between QUIBB 2006 0