Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD2420 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT PAPER ON A PROPOSED ADDITIONAL GRANT IN THE AMOUNT OF SDR 11.4 MILLION (US$16 MILLION EQUIVALENT) TO THE REPUBLIC OF CHAD FOR THE EMERGENCY FOOD AND LIVESTOCK CRISIS RESPONSE PROJECT September 18, 2017 Agriculture Global Practice Country Department, AFCW3 Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Exchange Rate Effective July 31, 2017 Currency Unit = CFA franc CFA franc 555 = US$1 US$1 = SDR 0.71035340 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS ACSA Agent communautaire de santé Animale (community agent of animal health) (Community Agency for Animal Health) AF Additional Financing AU African Union BP Bank Policy CAR Central African Republic CPF Country Partnership Framework CQS Consultant Qualification Selection EA Environmental Assessment ESMF Environmental and Social Management Framework ESMP Environmental and Social Mitigation Plan ESSAF Environmental and Social Screening and Assessment Framework EU European Union FAO Food and Agriculture Organization FM Financial Management FMORC Financial Management Operation Review Committee FY Fiscal Year GAM Global acute malnutrition GDP Gross Domestic Product GoC Government of Chad GPN General Procurement Notice Ha Hectare IBM Iterative beneficiary monitoring IBRD International Bank for Reconstruction and Development ICB International competitive bidding IDA International Development Association IDP Internally Displaced People IFR Interim Financial Report IM Implementation Manual IOM International Office of Migration IP Implementation Performance IPF Investment project Fianncing LCS Least-cost Selection M&E Monitoring and evaluation ii MEDP Ministry of Economy and Development Planning MLAP Ministry of Livestock and Animal Production MPIAE Ministry of Production, Irrigation and Agricultural Equipment MoU Memorandum of Understanding MT Metric ton NCB National Competitive Bidding NGOs Nongovernmental organizations NWCRR National Welcoming Center of Reinsertion and Reintegration OCHA Office for the Coordination of Humanitarian Affairs OP Operational Policy PAPAT Projet d’Appui à la Production Agricole (Agriculture Production Support Project) PCN Project Concept Note PDO Project Development Objectives PIM Project Implementation Manual PIU Project Implementation Unit PP Project Paper PPMP Pest and Pesticide Management Plan PRAPS Projet d’Appui au Pastoralisme au Sahel (Regional Sahel Pastoralism Support PURCAE Project) Projet d’Urgence de Réponse à la Crise Alimentaire et de l’Elevage (Emergency Food and Livestock Crisis Response Project) RVP Regional Vice President SCD Systematic Country Diagnostic SDR Special Drawing Rights SSA Sub-Saharan Africa SSS Single source selection UN United Nations UNDB United Nations Development Business UNHCR United Nations High Commissioner for Refugees UNICEF United Nations International Children’s Emergency Fund WBG World Bank Group WFP World Food Program WHO World Health Organization Regional Vice President: Makhtar Diop Country Director: Soukeyna Kane Seniog Global Practice Director: Juergen Voegele Country Manager: Francois Nankobogo Practice Manager: Dina Umali-Deininger Task Team Leader: Bleoue Nicaise Ehoue iii REPUBLIC OF CHAD ADDITIONAL FINANCING OF THE EMERGENCY FOOD AND LIVESTOCK CRISIS RESPONSE PROJECT Table of Contents I Introduction ........................................................................................................................... 1 II. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING............................................ 1 A. Country Economic and Social Context.................................................................................... 1 B. Sector and Institutional Context ............................................................................................. 2 C. Response to the Crisis ............................................................................................................. 3 D. Original Project Status and Performance ............................................................................... 4 E. Relationship to Government and World Bank Strategies....................................................... 5 F. Rationale for the Additional Financing ................................................................................... 5 G. Consideration of Alternative Funding .................................................................................... 6 III. PROPOSED CHANGES ............................................................................................................. 7 A. Beneficiaries and Geographic Scope.................................................................................... 7 B. Citizen Engagement ............................................................................................................. 7 C. Gender ................................................................................................................................. 7 D. Links with Ongoing Initiatives .............................................................................................. 8 IV. Appraisal Summary .................................................................................................................. 21 E. Lessons Learned ................................................................................................................. 24 V. WORLD BANK GRIEVANCE REDRESS .................................................................................... 25 Annex 1A: Revised Results Framework and Monitoring Indicators ............................................. 26 Annex 1B: PURCAE-Additional Financing - Revised Results Framework ...................................... 29 Annex 2: Detailed Project Description .......................................................................................... 32 Annex 3: Implementation and Institutional Arrangements ......................................................... 39 Annex 4: Implementation Support Plan ....................................................................................... 45 Annex 5: Environment and Social Issues ...................................................................................... 46 Annex 6: Greenhouse Gas (GHG) Accounting Republic of Chad .................................................. 51 Annex 7: Map ................................................................................................................................ 53 iv ADDITIONAL FINANCING DATA SHEET Republic of Chad Emergency Food and Livestock Crisis Response AF ( P163258 ) Agricultural Global Practice . Basic Information – Parent Parent Project ID: P151215 Original EA Category: B - Partial Assessment Current Closing Date: 31-Dec-2017 Basic Information – Additional Financing (AF) Additional Financing Project ID: P163258 Cost Overrun, Scale Up Type (from AUS): Regional Vice President: Makhtar Diop Proposed EA Category: Expected Effectiveness Country Director: Soukeyna Kane October 31,-2017 Date: Senior Global Practice Juergen Voegele Expected Closing Date: 30-Sep-2019 Director: Practice Manager: Dina Umali-Deininger Report No: PAD2420 Team Leader(s): Bleoue Nicaise Ehoue Borrower Organization Name Contact Title Telephone Email Coordinator PRAPS- Republic of Chad Dr. Ahmat Hassan +23566296031 ahmathassan@hotmail.fr TD Project Financing Data - Parent (Emergency Food and Livestock Crisis Response Project-P151215) (in US$ Million) Key Dates Approval Effectiveness Original Revised Project Ln/Cr/TF Status Signing Date Date Date Closing Date Closing Date IDA- P151215 Effective 14-Oct-2014 15-Dec-2014 02-Mar-2015 30-Apr-2017 31-Dec-2017 H9930 Disbursements Disburse Undisbu % Project Ln/Cr/TF Status Currency Original Revised Cancelled d rsed Disbursed IDA- P151215 Effective SDR 11.90 11.90 0.00 11.90 0.00 100.00 H9930 v Project Financing Data - Additional Financing Emergency Food and Livestock Crisis Response AF (P163258) (in US$ Million) [ ] Loan [ ] Grant [X] IDA Grant [ ] Credit [ ] Guarantee [ ] Other Total Project Cost: 16.00 Total Bank Financing: 16.00 Financing Gap: 0.00 Financing Source – Additional Financing (AF) Amount IDA Grant 16.00 Total 16.00 Policy Waivers Does the project depart from the CAS in content or in other significant No respects? Explanation Does the project require any policy waiver(s)? No Explanation Team Composition Bank Staff Name Role Title Specialization Unit Bleoue Nicaise Ehoue Team Leader Senior Agriculture Agroeconomics GFA01 (ADM Economist Responsible) Haoussia Tchaoussala Procurement Senior Procurement Procurement GGO07 Specialist (ADM Specialist Responsible) Josue Akre Financial Financial Financial GGO26 Management Management Management Specialist Specialist Abdoulaye Toure Team Member Lead Agriculture Agroeconomics GFA01 Economist Amadou Ba Team Member Senior Agriculture Agroeconomics GFA01 Economist Andre Marie Taptue Team Member Economist Light Monitoring and GPV07 Evaluation Benjamin Billard Team Member Operations Officer Agroeconomics GFA01 Berthe Tayelim Team Member Program Assistant Program Assistant AFMTD vi Cheikh A. T. Sagna Safeguards Senior Social Social Safeguards GSU01 Specialist Development Specialist Christian Berger Team Member Sr Agricultural Agroeconomics GFA01 Specialist Edmond Badge Team Member Communications Communication AFREC Dingamhoudou Officer Emelyne Calimoutou Team Member Legal Analyst Counsel LEGAM Emeran Serge M. Safeguards Senior Environment GEN07 Menang Evouna Specialist Environmental Safeguards Specialist Faly Diallo Team Member Finance Officer Finance WFALA Julie Rieger Team Member Senior Counsel Counsel LEGAM Juvenal Nzambimana Team Member Senior Operations Operations GFA01 Officer Madio Fall Team Member Sr Water & Water & Sanitation GWA07 Sanitation Specialist Mahamadou Team Member Senior Social Social Safeguard GSU01 Ahmadou Maiga Development Specialist Michel Rogy Team Member Program Leader Program Lead AFCW3 Minna Maria Kononen Team Member Country Relations Environment GEFPO Officer, GEF Paulette C.E. Aida Team Member Program Assistant Administration AFMTD Thioune Zoua Salam Hailou Team Member Program Assistant Administration GFA01 Sossena Tassew Team Member Operations Analyst Operations GFA01 Volana Team Member Program Assistant Administration GFA01 Andriamasinoro Locations Country First Administrative Location Planned Actual Comments Division Chad Salamant Haraze Mangueigne X X Chad Salamat Bahr Azoum X X Chad Salamat Am Timan X X Chad Logone Oriental Nya X X Chad Logone Oriental Nankesse X X Chad Mandoul Moissala X X vii Chad Logone Oriental Bessey X X Chad Salamat Abou Deia X X Chad Logone Oriental Manani X X Chad Moyen Chari Barh Koh X X Chad Logone Oriental Nya Pende X X Chad Logone Oriental Pende X X Chad Moyen Chari Lac Iro X X Chad Moyen Chari Grande Sido X X Institutional Data Parent (Emergency Food and Livestock Crisis Response Project-P151215 ) Practice Area (Lead) Agriculture Contributing Practice Areas Additional Financing Emergency Food and Livestock Crisis Response AF ( P163258 ) Practice Area (Lead) Agriculture Contributing Practice Areas viii I INTRODUCTION 1. This project paper (PP) seeks the approval of the Executive Directors to provide an additional grant in an amount of Special Drawing Right (SDR) 11.4 million (US$16 million equivalent) to the Republic of Chad Emergency Food and Livestock Crisis Response Project (PURCAE/P163258) (International Development Association (IDA) D2350-TD). The Additional Financing (AF) will come from the national International Development Association for Chad. Paragraph 12 of OP l 0.00 is being triggered based on the urgent need for assistance to an increased number of displaced population owing to conflict in the region. 2. The Government of Chad (GoC) requested the AF on January 30, 2017 to help finance a cost overrun 1 under activities of the parent project, estimated at US$1.5 million, as well as a set of scaled-up activities for the well performing PURCAE given the continuing influx of refugees and returnees from the Central African Republic (CAR). 3. The proposed AF will entail the following changes to the original project: (i) addition of new activities under Component A (targeted food assistance) and Component B (agricultural production and livestock stabilization) of PURCAE; (ii) revision of the results framework to update the end targets of the project development objective (PDO) indicators to match the newly established closign date and add new intermediate result level indicators; (iii) addition of the United Nations Children’s Fund (UNICEF) as an implementing agency, alongside the Food and Agriculture Organization (FAO) and the World Food Program (WFP), to handle specific, newly introduced activities; and (iv) extension of the closing date of the original project from December 31, 2017 to September 30, 2019 to be coterminous with the closing date of the AF. 4. The project implementation has experienced no adverse environment and social impacts thus far. One new safeguard category will be triggered for the AF with respect to physical cultural resources (Operational Policy (OP) / Bank Policy (BP) 4.11), the risk rating for which is “Substantial.” 5. The AF will continue to be implemented in close cooperation with FAO, the WFP, and UNICEF. To leverage on complementarities and to avoid duplication, close coordination will be sought with other IDA- financed operations as well as with other development partners active in the project areas. II. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING A. COUNTRY ECONOMIC AND SOCIAL CONTEXT 6. Chad is a large and landlocked country with a population of 12.5 million, of which 3.5 percent are estimated to be refugees, the seventh highest number in the world per the United Nations High Commissioner for Refugees (UNHCR). Chad ranks 184th out of 187 countries in the Human Development Index. The population is highly vulnerable to shocks and crises. The rural population comprises 78 percent of the national population, and 80 percent of the rural population supports itself through subsistence farming and livestock activities. 1 This cost overrun results from the appreciation of the Special Drawing Right (SDR) against the US dollar. 1 7. Since mid-2014, Chad has experienced an unprecedented economic crisis caused by the collapse of oil prices, which reduced GoC’s revenues and consequently led to a sharp decline in public spending. After reaching 6.9 percent in 2014, gross domestic product (GDP) growth plummeted to 3.5 percent in 2015, when the economy entered a recession with a growth rate of -3.5 percent in 2016 and a projected rate of -0.3 percent in 2017. In this economic context, the GoC has limited capacity to invest in basic social services. The situation is exacerbated by conflicts in neighboring countries (Sudan, Nigeria, CAR, and Libya), as well as in the Lake Chad area, which: (i) have a profound impact on the functioning of markets and cross-border trade; (ii) have led the authorities to close certain borders (Cameroon and South Soudan), leading to the collapse of trade, particularly of livestock; and (iii) have disrupted trade routes of imported goods, particularly in the Sahelian belt. 8. Of the more than 700,000 displaced people currently living in Chad, there are 441,000 refugees (including 366,000 from Sudan, 73,000 from CAR, and 2,000 from Nigeria); 180,000 returnees (of which 80,000 are from CAR, and 100,000 are from Libya); and 70,000 long-term internally displaced persons from the 2007 conflict and subsequent cross-border attacks in Darfur, Sudan. Forced displacement, much of it protracted, creates challenges for social cohesion and development, as well as in financing the humanitarian response. Forced displacements have also gradually weakened the situation of host communities, estimated at 734,000 people, since the heavy cost and limited availability of food production have led to high food prices resulting in severe food insecurity and malnutrition. 9. Since insecurity persists in CAR, the number of returnees and refugees 2 in Chad coming from CAR is increasing, and the duration of their stay is likely to lengthen. B. SECTOR AND INSTITUTIONAL CONTEXT 10. Productivity in Chad’s agricultural sector has been low for a long time. Between 2005-2011, agricultural productivity grew at an annual average rate of 1.4 percent. Cereal yields have remained lower than average for Sub-Saharan Africa (SSA) and are highly volatile. A combination of factors has dampened productivity in the agricultural sector including: (i) the risky and variable production environment; (ii) a lack of effective public investment, extension services, and basic skills, which are associated with the limited uptake of new technologies; (iii) a lack of improved water and land management, which would help to increase yields and reduce climate-related risks; (iv) a lack of value-chain integration, both up- and down-stream; (v) limited connectivity to local and international markets; and (vi) high transaction costs, particularly in the livestock sector. The general lack of basic infrastructure services in rural areas (electricity, water, storage, and transport) also constraints the development of on- and off-farm activities. 11. Complex and protracted humanitarian situations associated with the economic downturn, the GoC's weak capacity to make meaningful investments in the social and productive sectors, and the effects of climate change, contribute to vulnerability to food security. The country ranked second among 187 countries on the World Hunger Index in 2016. Per the regional "harmonized framework" projections of the United Nations (UN) agencies of November 2016, during the lean period of 2017 (from June to December), over one million people are expected to be severely affected by food insecurity (“phase 3”), and 2.8 million to suffer moderate food insecurity. 2 For example, FAO reported that due to the recent violence in CAR, about 2,900 refugees/returnees fled CAR and entered Chad within a week (July 4-10, 2017). 2 12. Chronic malnutrition is a public health problem with a global chronic malnutrition prevalence of more than 30 percent over the past decade. The GoC and WFP, in collaboration with the African Union (AU), conducted a study on the cost of hunger that found that 43 percent of infant mortality is linked to malnutrition. The study also estimated annual child malnutrition costs at US$935 million (CFAF 575 billion), representing a loss of 9.5 percent of the country's GDP. By 2016, the prevalence of global acute malnutrition (GAM) reached alarming levels, with an average of 11.9 percent for children between 6 and 59 months old, and rates above 15 percent of the World Health Organization (WHO)’s emergency threshold in the general population. 13. Although cereal production increased by 14 percent between 2015 to 2016, the structural vulnerability of the agro-pastoral sector means that many households (refugees and local populations) are unlikely to have the capacity to cope with the agricultural and pastoral lean period that started in June 2017. A recent assessment by the United Nations Office for the Coordination of Humanitarian Affairs (OCHA) of the overall refugee crisis revealed that over US$588 million are needed to cover the different areas to improve their livelihood. However, only 45 percent of monetary needs are met on average, yearly. So far, donors 3 have made no additional commitments. C. RESPONSE TO THE CRISIS 14. While the total needs for the overall refugee’s program for 2017 is estimated at US$165.30 million, only US$28.20 million has been made available (17 percent) as of July 17, 2017, leaving a funding gap of US$137.10 million. The situation is even worse for the CAR refugees/returnees program, whose current funding represents 3 percent of US$47.70 million, leaving a gap of US$46.30 million. So far, the European Union (EU) is the only donor which has contributed to the program with a donation of US$1.50 million in 2017. 15. The World Bank has been supporting the GoC in dealing with the crisis of refugees and returnees from CAR to Chad by: (i) restructuring the Chad Agriculture Production Support Project (PAPAT/P126576) on June 24, 2014, which reallocated US$3.50 million to support the GoC’s effort to help returnees/refugees restore their livelihoods and to mitigate the spread of animal diseases; (ii) approving on October 14, 2014 a grant of US$18 million for PURCAE to improve availability and access to food and to secure agricultural production and livestock stabilization for targeted beneficiaries affected by the CAR conflict through targeted food assistance and support for crop and livestock production activities. Following a GoC request dated January 30, 2017, this AF to PURCAE has now been prepared in response to the GoC ‘s request to provide additional resources to cover the funding gap, to consolidate results achieved so far and to address the continuous influx of returnees/refugees from CAR to Chadby scaling up activities for refugees and returnees whose circumstances are dire. The AF-PURCAE would constitute a significant element of the World Bank’s broader support to Chad’s refugee burden. Chad is potentially eligible for the IDA-18 refugee subwindow, subject to authorities’ adoption of a strategy and an action plan or any similar document that describes concrete steps, including possible policy reforms, towards long-term solutions benefitting refugees and host communities. To that end, the World Bank is currently preparing the Chad Board Consultation Note on Eligibility for IDA-18 Regional Sub-Window for Refugees 3 The United States is by far the main contributor with US$15.80 million followed by Japan (US$1.90 million), Switzerland (US$1.80 million); European Union (US$1,70 million); Canada (US$1.60 million); Germany (US$1.20 million); France (US$1.10 million). 3 and Host Communities (which is based on the Chad Forced Displacement Strategy Note issued in February 2017), for a World Bank Board discussion on September 26, 2017 prior the approval of this AF. D. ORIGINAL PROJECT STATUS AND PERFORMANCE 16. The PURCAE (P151215) was designed as an Emergency Project. It was approved on October 14, 2014, became effective on March 2, 2015, and was expected to close on April 30, 2017. Upon the GoC’s request on January 30, 2017, the closing date was extended to December 31, 2017 to complete activities implemented by FAO, which experienced some initial delays. It is worth mentioning that due to the appreciation of the SDR at the time of project implementation, US$9.70 million of US$11 million were transferred to FAO to fill the financing gap and ensure that project activities are fully funded. Since the AF is expected to be signed by October 31, 2017, and the amount of US$1.50 million is below 40 percent of the proposed funding (US$4.40 million), a retroactive financing rule will apply to reimburse FAO’s expenses incurred in implementing PURCAE. 17. At the Project Development Objective (PDO) level, indicators related to vouchers or food, distributed agricultural input packages, and vaccinated animals have been achieved or exceeded, as reflected below. • 145,540 direct beneficiaries of the PURCARE project, of which 74,358 are women (51.3 percent), against a target of 116,200 beneficiaries, of which 50 percent are women; • 32,460 beneficiaries of food vouchers and distributed food, against a target of 31,200 (about 104 percent of target); • 36,385 agricultural input packages distributed, against a target of 15,000 (more than double the target); • 2.45 million livestock (cattle) vaccinated, against a target of 1.50 million (142 percent of target). 18. The WFP conducted a post-distribution monitoring exercise in November 2015, and found that the prevalence of food insecurity among the surveyed population was 10 percent, versus the baseline value of 15 percent. The improvement was greatest among female-headed households, for which the value reached 8.5 percent. 19. Significant progress has also been achieved towards targets on intermediate results under the two components: • Component A: Targeted food assistance (US$7 million). The project achieved over 100 percent of “targeted food assistance” by helping refugees and returnees establish livelihoods and preventing them from having to sell their limited productive assets. The targeted food assistance was set to enable WFP scale up activities related to vulnerable households, covering 31,200 refugees/returnees for 12 months. Under the nutritional support activities, a total of 2,520 children aged 6 to 59 months (against a target of 2,520 children aged 6 to 23 months) suffering from moderate acute malnutrition received daily rations of 200 grams of “Supercereal Plus” during a two-month period. • Component B: Agricultural production and livestock stabilization (US$11 million). Headway was made in curbing potential disease among livestock by vaccinating 2,451,460 cattle against contagious bovine pleuropneumonia (pleuropneumonia contagious bovine-PPCB) and small 4 ruminant plague (peste de petits ruminants-PPR), against a target of 1,500,000 cattle. This was achieved via a highly competitive bidding process that resulted in substantially lower input prices, thereby allowing a larger number of refugees and hosting households to get their animals vaccinated. Breeder households with vaccinated animals and breeding stock also increased dramatically. Specific intermediary results for activities carried out under Component B include: o 100 percent of targeted households received breeding stocks as planned; o 85 percent of the animal feed were distributed; o 1,156 staff received training, versus 750 previously planned by FAO. E. RELATIONSHIP TO GOVERNMENT AND WORLD BANK STRATEGIES 20. The GoC assigns high priority to agriculture in its National Investment Plan for the Rural Sector of Chad (PNISR 2016-2022), which is the national adaptation of the Comprehensive African Agriculture Development Program (CAADP), whose objective is to prioritize economic growth in the rural sector to ensure the food and nutritional security of Chadian people. 21. The proposed AF supports the World Bank Group (WBG) twin goals of eliminating extreme poverty and boosting shared prosperity. It is fully aligned with the current Fiscal Year (FY)15-19 Country Partnership Framework (CPF) 4 discussed by the Board on July 25, 2015, which underscored the strategic objectives of promoting inclusive growth by focusing on: (i) strengthening management of public resources; (ii) improving returns to agriculture and building value chains; and (iii) building human capital and reducing vulnerability. These themes draw on the WBG comparative advantage in responding to key poverty reduction constraints as highlighted by the Systematic Country Diagnostic (SCD) 5, and are aligned with the GoC’s goals of improving governance and productivity, building human capital, and reducing inequality. To help the GoC address agriculture-related parts of the CPF (Objective ii), the World Bank is preparing for delivery in FY18 Chad – Agro-sylvo-pastoral Climate Resilience and Productivity Enhancement Project (P162956), which is going to increase adoption of improved technologies that can raise productivity and enhance resilience in the Project’s targeted areas. 22. The proposed AF will consolidate existing World Bank activities in the area of forced displacement (which, alongside the PURCAE benefiting Chadian returnees from the CAR, include a regional impact assessment of the Boko Haram crisis in the Lake Chad Basin, and two pilot projects in partnership with UNHCR to establish integrated villages where refugees and host communities are granted access to the infrastructure, services, and opportunities needed to promote livelihoods and foster self-reliance among refugees) and provide a basis for a scaled-up engagement under the IDA-18 refugee subwindow, which could materialize by the end of FY18 with a Refugees and Communities Project (P164748). F. RATIONALE FOR THE ADDITIONAL FINANCING 23. Given the increasing needs of refugees/returnees in Chad coming from CAR, the GoC sees great benefit to enhancing PURCAE by building on the existing results with additional funds before Chad can access the IDA-18 subwindow funds for refugees and host communities. Securing the proposed AF is 4 The CPF (No: 955277) was approved by the Board on 12/10 2015 5 The SCD (No: 96537-TD) was approved by the Board on 9/11/2015 5 particularly urgent to address the upcoming agriculture offseason, during which project activities will be carried out (the offseason spans from October to April). The proposed AF will include additional returnees/refugees and host households left without assistance due to scarce resources in the wake of dropping oil prices in the country. 24. The AF will contribute to addressing issues frequently identified during field visits, such as difficulty accessing potable water and sustainable cooking systems that preserve food nutrients, given the scarcity of firewood and environmental degradation. Resolving both issues is essential to improving the nutritional status and the well-being of returnees/refugees and host communities. 25. Considering the currency exchange losses incurred in implementing the parent project, FAO prefinanced all activities based on the memorandum of understandings for the project to achieve the project’s objective. The AF will cover the cost overrun amounting to US$1.50 million 26. The AF would continue to be nutrition- and gender-sensitive by financing food assistance to the most vulnerable refugees/returnees and host households, and by supporting the production of highly nutritious agricultural products such as fruits and vegetables (whenever agricultural activities are possible) with easy access to land for returnees/refugees. It will also contribute to: (i) stabilizing the livestock sector by combatting the potential spread of diseases; (ii) providing animal feed; and (iii) promoting awareness campaigns to ease potential conflicts that may surface among communities. In this perspective, the Regional Vice President (RVP) of the World Bank approved, on August 15, 2017, the request to finance food expenditures in line with the Investment Project Financing (IPF) instructions "Other Instructions: Selected Expenditures to be Financed under the Loan, Section (3): food expenditures, severance payments, or interest during construction." 27. The closing date of the project is proposed to be extended from December 31, 2017 to September 30, 2019 to give returnees and refugees the opportunity to expereince two crop seasons, and two off seasons during which project activities are carried out. 28. The proposed AF meets the requirement of World Bank Policy and World Bank Directive for IPF, which provides additional flexibility as defined in its paragraph 12. Flexibility can be utilized in cases where the Borrower/Beneficiary is deemed by the World Bank to be: (i) in urgent need of assistance because of a natural or artificial disaster or conflict; or (ii) experiencing capacity constraints because of fragility or specific vulnerabilities, the latter applying to Chad. G. CONSIDERATION OF ALTERNATIVE FUNDING 29. Two possible financing alternatives were considered: (i) financing from the government budget, which was not possible due to the current economic crisis resulting from a drop in oil revenues; and (ii) funding from humanitarian organizations including UN agencies. However, while organizations have been actively supporting Chad in this emergency context, financing reaches only 50 percent of Chad’s needs, indicating potential donor fatigue. 6 III. PROPOSED CHANGES A. BENEFICIARIES AND GEOGRAPHIC SCOPE 30. There would be no major change in the targeted beneficiaries. The prospective beneficiaries are already being carefully identified, drawing on lessons from PURCAE. Table A2.1 lists the categories of potential beneficiaries. Beneficiaries will be selected based on information from key agencies such as FAO, UNHCR, OCHA, WPF, International Office for Migration (IOM) and the National Welcoming Center for Reinsertion and Reintegration, as well as by drawing from the extensive knowledge of local NGO partners. At the community level, the community’s socioeconomic profile (with special consideration given to the proportion of female-headed households and households with an agricultural production background), coping strategies, food stocks, food consumption patterns, and proportion of households hosting displaced persons, will be taken into account. Regular consultations with affected populations and a communications campaign with local religious and community leaders will be implemented to inform communities about unconditional and conditional food assistance, mechanisms for preventing conflicts, and other aspects of the project. 31. PURCAE targets four regions where refugees/returnees from CAR are mainly located: Moyen Chari, Mandoul, Logone Oriental, and Salamat. For certain livestock stabilization activities under Component B (vaccinations and feed), parts of Logone Occidental, Mayo Kebbi, Chari Baguirmi, Hajar Lamis, Bahr El Gazel, Guéra, Batha, and Sila are also targeted given their importance as transit and gathering areas for pastoral and agro-pastoral populations. However, the GoC and the World Bank have agreed to focus the proposed AF on only the four main regions, since they are the entry points and contain the highest concentration of refugees/returnees along Chad and CAR borders. B. CITIZEN ENGAGEMENT 32. The selection of beneficiaries runs the risks of creating perceived inequities among host communities, resulting in social tensions. The AF will mitigate this risk by focusing on citizen engagement measures. Training will continue to be provided to foster the capacity to share timely information with beneficiaries about project-funded activities, channel beneficiary feedback to project management and other decisionmakers at local and central levels, and facilitate resolution of grievances. Quarterly information and consultation sessions will be held in every host community and refugee/returnee camp where project activities occur to provide beneficiary populations with information and allow them to provide feedback, clarify doubts, and express any existing grievances. In this context, the World Bank will implement the “iterative beneficiary monitoring system” (IBM) pioneered successfully in Northern Mali, which is a feedback mechanism to inform on issues that must be addressed during the project implementation phase. C. GENDER 33. Over 51 percent of women benefitted from the implementation of PURCAE. The AF will continue to target women in rebuilding assets through the relaunching of the agricultural production activities. In this perspective, small cereal and cassava processing units will mostly be distributed to women to address post-harvest loss issues and generate revenues. 7 D. LINKS WITH ONGOING INITIATIVES 34. The AF will continue to establish close linkages with ongoing projects and organizations that are supporting the same or similar activities in Chad. The overall coordination of the AF will be led by the Regional Sahel Pastoralism Support Project’s (PRAPS) (P147674) Project Implementation Unit (PIU), while atvities implementation will be entrusted to UN agencies including FAO, WFP and UNICEF. These agencies will coordinate closely with the Chad Safety Net Project (P156479) whose PDO is to pilot cash transfers and cash-for-work interventions to the poor to lay the foundation for an adaptive safety net system. Coordination will help to harmonize approaches in cash transfer and allow WFP to benefit from the Safety Net Project’s comparative advantage in Monitoring and Evaluation (M&E). 8 Summary of Proposed Changes The PDO and components structure of the original project are still relevant for the proposed AF and will remain the same. While the number of components will not change, two new subcomponents will be introduced in Component A (targeted food assistance). They are Subcomponents A2 (conditional food assistance) and Subcomponent A3 (access to sustainable cooking systems and drinking water). The number of subcomponents of Component B (agricultural production and livestock stabilization) will remain the same, with the introduction of new activities in Subcomponent B1 (support for agricultural production) and Subcomponent B2 (support for livestock stabilization). There will be a change in the institutional arrangements with the intervention of PRAPS’s PIU to coordinate the project implementation and the participation of UNICEF in addition to WFP and FAO to implement new activities. To ensure that the proposed emergency project is implemented efficiently and successfully, the GoC will enter a renewed contractual agreements with WFP and FAO as they were key to achieving satisfactory outcomes despite Chad’s difficult socioeconomic context. The Government would also enter a new contractual arrangement with UNICEF to implement specific identified activities relative to Subcomponent A3 (access to sustainable cooking systems and drinking Water). Other changes will deal with the revision of the results framework to increase the end targets of the PDO indicators, end target dates will be extended to match the end target date with the newly established closing date and add new intermediate results indicators to capture the additional level of outputs and outcomes envisaged to be generated during the AF period. The closing datewill be extended to September 30, 2019. The AF will trigger one additional safeguards policy related to OP/BP 4:11 (Physical Cultural Resources). There will also be changes to componenst and costs, disbursement arrangements and estimates. Change in Implementing Agency Yes [ X ] No [ ] Change in Project's Development Objectives Yes [ ] No [ X ] Change in Results Framework Yes [ X ] No [ ] Change in Safeguard Policies Triggered Yes [ X ] No [ ] Change of EA category Yes [ ] No [ X ] Other Changes to Safeguards Yes [ ] No [ X ] Change in Legal Covenants Yes [ X ] No [ ] Change in Loan Closing Date(s) Yes [ X ] No [ ] Cancellations Proposed Yes [ ] No [ X ] Change in Disbursement Arrangements Yes [ X ] No [ ] Reallocation between Disbursement Categories Yes [ X ] No [ ] Change in Disbursement Estimates Yes [ X ] No [ ] Change to Components and Cost Yes [ X ] No [ ] Change in Institutional Arrangements Yes [ X ] No [ ] 9 Change in Financial Management Yes [ X ] No [ ] Change in Procurement Yes [ ] No [ X ] Change in Implementation Schedule Yes [ X ] No [ ] Other Change(s) Yes [ ] No [ X ] Development Objective/Results Project’s Development Objectives Original PDO The project development objective is to improve the availability of and access to food and livestock productive capacity for targeted beneficiaries affected by the conflict in the Central African Republic on the Recipient's territory. Change in Results Framework Explanation: All the PDO indicators have been maintained. Only the end targets for indicators have been increased to reflect the AF intervention and to match the newly established closing date. However, new intermediary results indicators have been introduced to reflect new activities to be performed by the project. These are related to the number of beneficiaries of conditional food assistance, the number of improved fireplaces distributed, and the number of drinking water wells rehabilitated. An indicator to reflect citizen engagement has also been introduced (number of beneficiaries satisfied with project outcomes). Two previous intermediary results indicators relative to the direct food transfer and the blanket supplemental feeding have been discontinued as they are no longer relevant. (See Annex 1 of the revised results framework). PDO Indicators Status Number of agricultural input packages distributed to beneficiaries in the target Revised areas (increased end target) Number of direct beneficiaries of food vouchers transfers Revised (increased end target Number of livestock (cattle) vaccinated Revised (increasee end target) Direct project beneficiaries Revised (increased end target) Percentage of direct project beneficiaries that are women Revised (increased end target) Intermediate Indicators Component A: Food Targeted Assistance Direct food transfers Discontinued Number of beneficiaries of conditional food assistance New Number of drinking water wells rehabilitated New Number of improved fireplaces fabricated and distributed New Blanket supplemental feeding Discontinued Component B: Agricultural Production and Livestock Stabilization 10 Households receiving breeding stock Revised (increased end target) Animal feed distributed Revised (inreased end target) People trained Revised (increased end target) Decentralized staff trained Revised (increased end target) People participating in training sessions on conflict resolution Revised (increased end target) Percentage of beneficiaries satisfied by the project's intervention New Compliance Change in Safeguard Policies Triggered Explanation: OP/BP 4.11: Physical Cultural Resources. The proposed operation may involve excavations and movement of earth for community facilities. The ESMF includes clear procedures that will be required for identification, protection of cultural property from theft, and treatment of discovered artifacts, and also includes standard bidding documents. The ESMF provides procedures for handling with “chance finds” during implementation project activities. Current and Proposed SafeguardPolicies Current(from Current Proposed(from Additional Triggered: Parent ISDS) Financing ISDS) Environmental Assessment (OP) (BP 4.01) Yes Yes Natural Habitats (OP) (BP 4.04) No Forests (OP) (BP 4.36) No Pest Management (OP 4.09) Yes Yes Physical Cultural Resources (OP) (BP 4.11) Yes Indigenous Peoples (OP) (BP 4.10) No Involuntary Resettlement (OP) (BP 4.12) No Safety of Dams (OP) (BP 4.37) No Projects on International Waterways (OP) (BP No 7.50) Projects in Disputed Areas (OP) (BP 7.60) No Covenants - Additional Financing ( Emergency Food and Livestock Crisis Response AF - P163258 ) Source of Finance Description of Frequenc Funds Agreement Date Due Recurrent Action Covenants y Reference Project The Recipient IDAT 30-Nov-2017 New Implementatio shall, not later 11 n Manual. than one (1) Schedule 2 month after the Section I. B. 1. Effective Date, of the Financial update the Project A Implementation Manual, in form and substance acceptable to the Association, containing detailed administrative, procurement, financial management and monitoring and evaluation procedures, and coordination and oversight arrangements for the Project. In order to ensure the proper carrying out of the Project, the Recipient shall not later than one (1) month after the Effective Date, enter into Service Service Agreements Agreements. (“Service Schedule 2 Agreements”) with IDAT Section I. C. 1. each of WFP (for 30-Nov-2017 New (a) of the implementation of Financial Parts A.1 and A.2 Agreement of the Project), FAO (for implementation of Part B of the Project) and UNICEF (for implementation of Part A.3 of the Project) (each a “Service 12 Provider”), Conditions l Source Of Fund Name Type IDAT Retroactive financing. Schedule Disbursement 2 Section IV. A. 2. (a) of the Financial Agreement Description of Condition Notwithstanding the provisions of paragraph 1 above, no withdrawal shall be made (a) for payments made prior to the date of this Agreement, except that withdrawals up to an aggregate amount not to exceed SDR 1,100,000 may be made for payments made prior to this date but on or after December 16, 2016, for Eligible Expenditures PHCondTbl Source Of Fund Name Type IDAT Project Implementation Manual. Disbursement Schedule 2 Section IV. A. 2. (b) of the Financial Description of Condition Notwithstanding the provisions of paragraph 1 above, no withdrawal shall be made (b) under Categories 2 and 3, until the Project Implementation Manual has been updated, in form and substance satisfactory to the Association. Risk Risk Category Rating (H, S, M, L) 1. Political and Governance High 2. Macroeconomic High 3. Sector Strategies and Policies Substantial 4. Technical Design of Project or Program Substantial 5. Institutional Capacity for Implementation and Sustainability Substantial 6. Fiduciary Substantial 7. Environment and Social Substantial 8. Stakeholders Moderate 9. Other (Targeting, UN Agency Intervention) Substantial OVERALL Substantial Finance Loan Closing Date - Additional Financing ( Emergency Food and Livestock Crisis Response AF - P163258 ) Source of Funds Proposed Additional Financing Loan Closing Date IDA Grant 30-Sep-2019 13 Loan Closing Date(s) - Parent ( Emergency Food and Livestock Crisis Response Project - PHHCLCD P151215 ) Explanation: The closing date of the parent project is December 31, 2017. It is proposed to extend the closing date to September 30, 2019 to allow completion of the expanded project activities. Status Original Closing Current Closing Proposed Closing Previous Closing Ln/Cr/TF Date Date Date Date(s) IDA-H9930 Effective 30-Apr-2017 31-Dec-2017 30-Sep-2019 31-Dec-2017 Change in Disbursement Arrangements PHHCDA Explanation: There will be a change in the disbursement arrangement with the creation of two new categories with respect to the introduction of the conditional food assistance and the access to drinking water and improved fireplaces. 14 Change in Disbursement Estimates (including all sources of Financing)PH Explanation: Disbursement estimate will change based on the reduced amount available and the new activities whose implementation could be carried in a short time frame during the first year. Expected Disbursements (in USD Million) (including all Sources of Financing) Fiscal Year 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Annual 7.00 6.00 3.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cumulative 7.00 13.00 16.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Allocations - Additional Financing ( Emergency Food and Livestock Crisis Response AF - P163258 ) Disbursement %(Type Source of Allocation Currency Category of Expenditure Total) Fund Proposed Proposed 1.Goods, works, non- consulting services, consultants services, IDAT USD 2,700,000.00 100.00 Food Assistance, Food Packages and Training under Par 2.Goods, works, non- consulting services, consultants services, IDAT USD 3,400,000.00 100.00 Food Assistance, Food Packages and Training under Par 3.Goods, works, non- consulting services, IDAT USD consultants services and 1,700,000.00 100.00 Training under Part A.3 of the Project 4.Goods, works, non- consulting services, Technology Packages, 8,200,000.00 100.00 IDAT USD consultants services and Training for Part B of the Pro Total: 16,000,000.00 Reallocation between Disbursement Categories PHHRBDC Explanation: The change resulted from the fact two new categories have been introduced in reflection of the activities now 15 being pursued by the project. Current Category of Disbursement %(Type Ln/Cr/TF Currency Allocation Expenditure Total) Current Proposed Current Proposed GD/NCS/VOUCHERS/FO IDA-H9930 SDR 4,600,000.00 6,500,000.00 100.00 100.00 OD PACK/TR PART A GD/WK/NCS/TECH IDA-H9930 7,300,000.00 13,200,000.00 100.00 100.00 PACKAGE/CS/TR PART B IDA-H9930 UN Advances 0.00 2,400,000.00 0.00 100.00 IDA-H9930 UN Advances 0.00 1,200,000.00 0.00 100.00 Total: 11,900,000.00 23,300,000.00 Components Change to Components and Cost PHHCCC Explanation: Like the parent project, the AF would include two components: (i) Component A: targeted food assistance, which consists of three subcomponents, of which two are new, and (ii) Component B: agricultural production and livestock stabilization. Component B will keep the same subcomponents but with new additional activities. Component A: Targeted food assistance (US$7.80 million). This component seeks to improve food security for the affected communities and to help them establish livelihoods by preventing them from having to sell their productive assets. Two major changes will be introduced to the component since field visits revealed communities’ difficulty in accessing potable water and sustainable cooking systems that preserve food nutrients, given the scarcity of firewood in degrading forest. Both elements are critical in improving the nutritional status and the wellbeing of returnees/refugees/host communities and constitute significant added value of the AF. The AF would help finance: (i) unconditional food assistance for refugees and returnees most vulnerable to food insecurity; (ii) conditional food assistance for returnees/refugees and host families through their participation in activities to rehabilitate sustainable productive assets; and (iii) access to potable water and sustainable cooking systems that preserve environmental assets. The cash transfer is based on “coupon codes" with a financial service provider or telephone operator. This scheme demonstrated transparency with no complaints from stakeholders during PURCAE implementation. Moreover, WFP is in the process of setting up a data and transfer management system for vulnerable populations called “SCOPE”. SCOPE is a digital platform that enables real-time data management, allowing WFP to better understand its beneficiaries and provide them with more personalized and secure assistance. Unconditional and conditional cash transfers will be accompanied by awareness campaigns to encourage behavioral change. Conveyed messages will focus on good practices in nutrition, infant and family health, and hygiene. Subcomponent A1: Unconditional food assistance (US$2.70 million). This assistance will be provided to 93,450 people (18,690 households) identified as the most vulnerable among the total refugee/returnee 16 population (poor and very poor). With the AF, the assistance will last only 45 days during the lean season from September to November 2017. The WFP will provide cash or vouchers to purchase a local standards food basket (currently valued at US$0.40per day). Subcomponent A2: Conditional food assistance (US$3.40million). This subcomponent is new and will support vulnerable refugees, returnees and host communities in the targeted areas. Beneficiaries will receive food assistance in the form of a monetary transfer (voucher or cash) on the condition that a member participates in sustainable productive assets-building. Each participant will receive a monetary transfer valued at US$0.28 per day during three months to meet their food needs. Productive assets-building activities will be organized though WFP in collaboration with other United Nations agencies, nongovernmental organizations (NGOs) and government technical services of MPIAE and MLAP, and through consultations with beneficiaries on their urgent needs. At the end of the unconditional distributions, 18,580 households or 92,990 people will have the opportunity to participate in livelihood-sustaining activities for three months. Beneficiaries would be priority refugees, returnees and host communities who did not get assistance from the parent project, PURCAE. Selected activities would include: (i) lowlands development for offseason crops (market gardening, rice cultivation); (ii) defense and soil restoration; (iii) protection of crop areas; and (iv) light rehabilitation of feeder roads to open production sites and promote markets. Selection of activities to be implemented would be made through participatory planning workshops to bring together beneficiaries and local actors. The AF will contribute to the overall effort to strengthen the resilience of local communities and the self-reliance of returnees through social mobilization to build community production assets. This strategy would help to meet immediate food needs and create conditions for sustainable food security. It would also produce indirect positive spillover effects on the lives of village members who do not participate in the project. Subcomponent A.3: Access to sustainable cooking systems and drinking water (US$1.70 million). This new subcomponent will be financed for the following activities: (i) the distribution and/or construction of improved mobile sheet metal fireplaces with the objective that all refugee/returnees/host communities reduce firewood consumption by 50 percent; and (ii) 35 information and awareness sessions on the use of improved fireplaces. A training of trainers will be organized to supervise women on the manufacture of improved fireplaces. Training in cooking techniques, processing and preservation of food would also be provided to beneficiaries. Additionally, more than 50 culinary tests and six sessions on environmental and nutritional education will be carried out at the household level. The project will also finance access to drinking water in sufficient quantity and quality through the rehabilitation of water wells in refugee camps, returnees’ sites and host communities. This undertaking would prevent diarrheal disease and improve the nutritional status of beneficiaries and complement hygiene promotion and sanitation activities. Component B: Agricultural production and livestock stabilization (US$8.20 million). The project would finance the gap of expenses caused by currency exchange losses during the implementation of the parent project and covered by FAO and amounting to US$1.50 million. Since this gap would be filled through a retroactive financing, resources allocated to cover the cost of Component B’s activities in the AF will be reduced accordingly, amounting to US$6.70 million. As with the parent project, this component will restore and maintain crop and livestock production capacity among affected populations in a context where pressure on the natural resource base is increasing rapidly. Hence, the AF-PURCAE will: (i) finance the provision of technology related to post-harvest activities, the acquisition of veterinary medicines and vaccines to support the community agent of animal health (Agent communautaire de santé Animale) (ACSA) in preventing epizootics, and the purchase of animal feed and additional livestock activities; (ii) strengthen the capacities of farmers and livestock producers' organizations; 17 and (iii) contribute to conflict resolution and promote pacific coexistence among the population. New activities will be introduced to sustain PURCAE’s gains through: (i) the introduction of cereal processing units as well as promoting the marketing of food surplus; (ii) strengthening the production capacity of seed multipliers and promoting their access to information on integration into the national seed sector; (iii) supporting breeders in anticipation of challenges arising from the increasing number (94 million heads of livestock) of Chadian livestock through the rehabilitation of light infrastructure, such as parking areas, water points, and vaccination parks). It is worth mentioning that due to the appreciation of the SDR at the time of the project implementation, only US$9.7 million out of the expected US$11 million were transferred to FAO. Delay in transmitting financial statements at the beginning which was then addressed, and weak communication during PURCAE implementation between FAO and the GoC contributed to a cost overrun despite a solid justification. Since the AF is expected to be signed by October 31, 2017, and the amount of US$1.50 million is below 40 percent of the proposed funding (US$4.40 million), a retroactive financing rule will apply to reimburse FAO’s expenses incurred in implementing PURCAE. Part of the AF proceeds under Component B will therefore cover funding gap caused by the currency exchange losses during the implementation of the parent project which was prefinanced by F AO in the amount of US$1.50 million. Taking into account the FAO prefinancing, a retroactive financing has been considered and actual new res ources to cover the cost of Component B’s activities in the AF will be reduced accordingly, amounting to US$6.70 million. Component B includes three subcomponents, described below Subcomponent B1: Support for agricultural production (US$2.88 million). This subcomponent will provide technology packages (improved seed, fertilizer, irrigation equipment and tools, small infrastructure) to approximately 8,240 affected households (returnees/refugees and host communities (of which 52 percent of households are headed by women) to restore their production capacities. In this context, the project will finance about 583 metric tons (MT) of improved seeds (vegetable rainfed and market gardening, rice, sorghum, millet) and 600,000 of cassava cutting needs to cultivate about 15,000 hectares (ha), with an expected production estimated at 15,000 MT. It will also finance 100 pieces of small irrigation equipment for 100 groups, 100 cereal processing units for women, 1,000 cereal storage barrels for seed banks, 20,000 linear meters of fence wire for market gardening producers, and 10 seed banks. Technical assistance in the form of school field visits will also be carried out to train producers. Subcomponent B2: Support for livestock stabilization (US$2.82 million). This subcomponent aims to restore and maintain the production capacity of livestock activities of the affected 38,000 herder households. Activities will include: (i) vaccination campaigns covering 1,100,000 animals; (ii) a targeted animal feeding program with the distribution of 480 MT of feed for 1,000 herders in areas where grazing land has been drastically reduced; and (iii) a small ruminant stock replenishment program for 1,000 households, mostly headed by women. New activities will include the distribution of 24 forage mowing kits, and 10 pieces of grinding and forage equipment. The herder households will benefit from the services of the MLAP relayed by the community agents of animal health trained and equipped for the vaccination campaigns. Moreover, 500 community animal health auxiliaries (ACSA) will be trained and equipped to help sustain this intervention. Subcomponent B.3: Support for conflict mitigation (US$1.00 million). This subcomponent will contribute to mitigating conflicts among users of natural resources, reducing the pressure on limited grazing areas, and preventing overuse of a fragile ecosystem. Activities will include: (i) the participatory identification of 150 kilometers of transhumance corridors, the rehabilitation of 10 pastoral well and livestock parking areas; (ii) the organization and facilitation of forums aimed at promoting peaceful coexistence (to include about 1,000 18 participants composed of transhumant herders, sedentary groups, refugees, returnees, community leaders, NGOs, and technical services); and (iii) the establishment of committees of elders and implementation of system for M&E and follow-up activities. This subcomponent will be implemented by FAO through NGOs and decentralized units of the MLAP. The decentralized institutions and local governments will also play important roles in supporting the implementation of this subcomponent. Current Component Proposed Component Current Cost Proposed Cost Action Name Name (US$M) (US$M) Targeted Food Targeted Food 7.00 7.80 Revised Assistance Assistance . Agricultural Production Agriculture Production and Livestock and Livestock 11.00 8.20 Revised Stabilization Stabilization Total: 18.00 16.00 Other Change(s) Change in Implementing Agency Explanation: There will a new implementation agency which PRAPS which will coordinate the overall implementation on the ground by FAO, WFP and UNICEF. Change in Institutional Arrangements Explanation: There will be a change in the institutional arrangements with the intervention of PRAPS PIU to coordinate the project implementation and the participation of UNICEF in addition to WFP and FAO to implement new activities. To ensure that the proposed emergency project is implemented efficiently and successfully, Chad’s Government will enter a renewed contractual agreements with specialized two UN agencies — WFP, FAO and a new a with UNICEF, as service providers. WFP will implement activities related to Subcomponents A1 and A2 of Component A (targeted food assistance), UNICEF will implement the Subcomponent A3. FAO will implement activities related to Subcomponents B1, B2 and B3 of Component B (agriculture production and livestock stabilization). The UN agencies are already on the ground and have an extensive network of contacts with NGOs and local government agencies that will allow speedy delivery of services, comparable to the effective service delivery executed by FAO and WFP during the implementation of PURCAE. WFP has an appropriate team in place, which will be complemented by regional and central specialized technical assistance when required. To ensure good management and execution of Component B, FAO will create a management team that will include: (i) a project coordinator in the N’Djamena office; (ii) two agronomists, one in each sub office; (iii) a livestock specialist; and (iv) a fiduciary specialist. UNICEF agency is already working in refugee camps, returnees’ sites and host communities and has field offices in Chad that would be reinforced if needed, with two specialists on cooking systems and drinking water. The respective contracts to be signed between GoC and the implementing UN agencies will include, inter alia, details of activities to be provided, technical and financial reporting requirements, reporting frequency, safeguards issues, and M&E during and at the end of project implementation. The GoC will be responsible for overall coordination and reporting to the World Bank. The existing PRAPS 19 Project ImplementationUnit (PIU) within the MLAP will be responsible for coordination and oversight of the proposed project’s implementation. Given the persistently volatile, risky security and fragile environment in which PURCAE is being implemented, the GoC and the World Bank will put in place an iterative beneficiary monitoring (IBM) system to strengthen the M&E system, replicating this same successful system already in use in Northern Mali. Change in Financial Management Explanation: The financial management arrangements for the AF will be based on the existing arrangements in place under the ongoing PURCAE (P151215). Two renewed memorandums of understanding (MoUs) will be signed with the three FAO and WFP and a new one with UNICEF. Since the GoC will contract with these UN agencies as suppliers to execute the activities under the proposed AF, a customized review of the financial arrangements of these suppliers was performed in conjunction with World Bank’s guidance regarding FM arrangements in UN agencies. The Ministry of Economy and Development Planning (MEDP) will be responsible for the project. Responsibility for overall coordination, M&E, and consolidated reporting will be handled by the PIU of the existing PRAPS, following the June 30, 2017 closure of PAPAT, whose PIU coordinated PURCAE. WFP, FAO and the UNICEF will keep accurate accounts and reports in accordance with their respective financial regulations and rules and the World Bank's procedures. The UN agencies will be required to submit unaudited interim financial reports (IFRs) adhering to an agreed format and content (including financial and physical progress) on a quarterly basis. They will also maintain separate ledger accounts to which all their receipts and disbursements for the purposes of procuring the supplies financed under the AF will be recorded. No designated account will be opened for this project. A blanket commitment will be set up for the UN agencies for the full amount to be transferred to each UN agency as an advance. The AF will finance 100 percent of eligible expenditures of the project, inclusive of taxes. On August 21, 2017, the request for elimination of audit requirements for the proposed emergency project, coordinated by PRAPS was submitted to the Financial Management Operation Review Committee (FMORC) for approval. The request was approved by the FMORC on September 18, 2017. Change in Implementation Schedule Explanation: There is a change in project implementation schedule resulting from the extension of the closing date from December 31, 2017 to September 30, 2019. Change in Procurement Explanation: The new procurement framework (including procurement regulations for the Recipient) that applies to projects with PCN after July 1, 2016, would normally apply. However, on June 19, 2017, the the approval for the exception under the procurement directive was obtained from the chief procurement officer (CPO) to apply the original procurement guidelines. Thus, procurement arrangements of the parent project will remain largely the same under the proposed AF in accordance with: (a) the World Bank’s “Guidelines: Procurement of Goods, Works, and Non-Consulting Services under IBRD Loans and IDA Credits and Grants” dated January 2011 and revised July 2014; and (b) “Guidelines: Selection and Employment of Consultants under IBRD Loans 20 and IDA Credits and Grants by World Bank Borrowers” (Consultants’ Guidelines) dated January 2011 and revised July 2014. The GoC contracted the implementation of parent project to two UN agencies (FAO and WFP), and procurement was carried out in a satisfactory manner and is expected to continue accordingly with UNICEF. IV. APPRAISAL SUMMARY Economic and Financial Analysis Explanation: The proposed project responds to a crisis. It supports individuals affected now and in the very near term. It is not designed as a long-term response, and is not expected to yield a sustained developmental impact. That said, the project is expected to improve theconditions for returnees, refugees, and host families in the target areas. The implementation arrangements, which rely on WFP and FAO and UNICEF, are the most cost- effective means of ensuring the rapid response that has been requested. The alternative—to create local capacity and then implement the project –is not feasible or practical for a project of such short duration. Each of the organizations involved will receive 7 percent of the respective contract value to cover administrative overhead charges, which is deemed reasonable. The project's efficiency will be judged by the cost effectiveness with which the project’s activities are carried out. Specifically, the proposed operation is expected to: (i) improve the livelihoods of returnees, refugees, and host families most affected by the crisis and protect those most vulnerable to malnutrition; (ii) increase agricultural production and food security for returnees, refugees, and host families; and (iii) improve livestock health through supplemental feeding and control diseases that would otherwise decimate the Chadian livestock subsector. Through these activities, the project will build beneficiaries’ assets and thereby improve their resilience when crises arise. Institutional capacity building through partnerships with government technical departments and local NGOs is another benefit of the project. The project's activities could also yield direct and indirect benefits in the short to medium terms. For example, the use of vouchers is likely to expand markets for the commodities generated by small-scale producers, and open opportunities for returnees and refugees to participate in an enhanced local economy. The externalities of the project are positive, although it is important to emphasize that the project’s efficacy will be judged by its ability to provide and improve access to food and agricultural inputs, stabilize livestock for the targeted beneficiaries. Technical Analysis Explanation: Access to certified seed, fertilizer, equipment, and agricultural services will help to restore and maintain livelihoods in the areas affected by the crisis and to enable returnees, refugees, and host communities to become less dependent on food distribution. Agricultural production in Chad remains at the subsistence level, with limited marketable surplus. In this context, the challenge is first to ensure short-term distribution of these agricultural goods and services to generate a supply response. A critical assumption is that the proposed AF will be able to restore the production capacity and improve food security of the beneficiary farmers and at the same time prevent malnutrition among the most vulnerable and affected groups, especially young children, pregnant women. The project will use a voucher/cash transfer system already implemented by WFP. A 2009 study reports that households rely on markets to meet 87 percent of their food consumption needs. A more recent market assessment (March 2014) finds a similar pattern among newly arrived returnees and refugees from CAR. These findings point to a lack of purchasing power as the main constraint to adequate and diversified food intake. WFP’s use of vouchers/cash transfer enhances markets for small-scale Chadian 21 farmers as well as CAR returnees engaged in agricultural activities. This strategy will further enhance market integration and provide new opportunities for returnees, refugees, and host communities to contribute to and participate in the local economy. Social Analysis Explanation: Like the parent project for which the proposed AF is scaling up its activities, the AF retains its social and environmental “Category B” rating despite triggering one additional safeguards policy related to OP/BP 4:11 (Physical Cultural Resources). The environmental and social risks and impacts of the overall project are expected to be generally positive, moderate, low in scale, mostly site-specific, and thus easily manageable. The AF is expected to produce positive environmental impact by supporting agricultural technologies that promote better use of land and water resources. Potential environmental and social risks and impacts could include point and nonpoint pollution of water sources, issues associated with the use of agricultural chemicals, and negative environmental and social risks and impacts associated with the rehabilitation of small-scale irrigation works. The PIU has extensive experience with the World Bank’s safeguards policies, and a dedicated team monitors both environmental and social aspects of the project, especially the implementation of the safeguards instruments. Likewise, all the UN agencies include implementable social and environmental clauses for consideration. The World Bank’s safeguards specialists will also provide further technical guidance to the PIU through proactive regular supervision missions and in-field technical capacity strengthening of the social and environmental safeguards specialists. The environmental and social impacts will be local and limited, as the project's activities will focus on targeted refugee and returnee camps and host communities. Specific mitigation measures will be designed. The proposed interventions will include: (i) supplying food; (ii) supplying seed, animal feed, and vaccines; (iii) rehabilitating storages facilities; and (iv) distribution of improved fireplaces to end deforestation, and rehabilitation of well water. The PURCAE safeguards documents (Environmental and Social Management Framework (ESMF), Pest and Pesticide Management Plan (PPMP)) will also apply to this AF.The Environmental and Social Screening and Assessment Framework (ESSAF), the Environmental and Social Management Framework (ESMF), and the Pest and Pesticide Management Framework (PPMF) prepared under the parent project have been updated, consulted upon, and disclosed. Negative social impacts under the parent project have been limited and activities likely to cause involuntary resettlement were excluded. The proposed AF would not trigger the policy on involuntary resettlement (OP 4.12), given that small infrastructure supported by the project did not require land acquisition. The proposed AF will avoid land acquisition as was the case of the parent PURCAE. Land was obtained through voluntary donations by the community and religious leaders, and the government following due process, and proper documentation and will continue to do so for the AF. Awareness campaigns will continue to target the conditional/unconditional voucher schemes activities, which may be open to incidence of corruption and unfairness, but the project team will clearly explain the rules and procedures for distributing project benefits as was done during the implementation of the parent project. Environmental Analysis Explanation: Environmental impacts under the PURCAE project have been limited, and safeguards performance has been satisfactory. The project was designed to avoid the financing of activities with significant negative environmental impacts and to promote environmental good practice such as reforestation and soil 22 conservation. Under Component A, activities focus on the distribution of vouchers to acquire food without negatively impacting the environment. It would also contribute to provision of improved stoves, which would help to mitigate the risk of deforestation. Under Component B, for the control of agricultural pests, the project focused on integrated pest management: use of approved pesticides only; reduced reliance on synthetic pesticides; use of biological pest control; training operators; etc. The proposed AF would largely continue current activities. It is proposed that the AF maintain environmental “Category B” in line with the classification of the parent project. The project’s existing ESMF, as well as the PPMP annex, was updated to reflect new project activities and disclosed prior appraisal. The MPIAE will be the main institution responsible for safeguards compliance. A safeguard specialist will be identified within this ministry to facilitate overseeing the implementation of the relevant safeguards instruments. In addition, the UN agencies will ensure that environmental and social safeguards are properly addressed during project implementation. More specifically, FAO will include an environmental specialist as part of its core team to ensure environmental due diligence for Component B. Periodic environmental and social safeguards implementation reports will be produced by the UN agencies and the MPIAE. The implementing agencies will initiate consultations as early as possible. To ensure that the consultations are meaningful, it will provide relevant material in a timely manner. Risk Explanation: Overall risk rating has been rated Substantial, mainly due to the political and governance challenges rated High while the country continues to face significant macroeconomic risk rated also High due to the drastic drop in oil revenues, leading a severe reduction in public investments. The project will work in close cooperation with other IDA-financed operations and partner with other development agencies taking into account complementarities as a way to mitigate these risks. The risk rating with respect to sector strategies and policies is rated Substantial due to the GoC’s weak commitment to reforming the agricultural sector and the lack of clear policies so far to address refugee- related issues. Intensified and regular discussions with the GoC in close coordination with other donors will help mitigate this risk. The risk related to the technical design of the project has also been rated Substantial as emergency operations have been designed in a rush and may fail to integrate factors that can hinder implementation. Moreover, the risk to attaining the PDO due to inadequate institutional capacity to implement and sustain the project is maintained as Substantial. Capacity weaknesses of the Governmen will be circumvented partly through the specialized support of the UN agencies to implementation. The fiduciary risk is rated Substantial despite the fact that the operation is entirely managed through three specialized UN agencies with high fiduciary standards and through proven contractual mechanisms. However, delay had occurred in transmitting financial statements at the beginning which was then addressed, and weak communication during PURCAE implementation between FAO and the GoC led to a cost overrun despite a solid justification. Quaterly supervisions will be carried out and intensified communication will established between the PIU and the UN Agencies. Environment and social risk is rated substantial mainly because of the risk of exclusion of the most vulnerable people. The risk of social exclusion will be mitigated by relying on a participatory, inclusive and transparent 23 community‐based targeting mechanism where communities will be able to identify beneficiaries based on clear eligibility criteria. Two additional risks rated “ Substantial” have been identified with respects to: (i) targeting CAR returnees, refugees and their hosts may create conflict when some of the largest groups of refugees, who substantially impact host communities, do not stand to benefit from the program; and 2) the risk associated with having two UN agencies share a component, thereby diluting the accountability process and increasing the risk of tensions between these agencies. These risks will be mitigated through better coordination with other donors and the UN implementing agencies and intensive communication with the overall refugees/returnees and communities. E. LESSONS LEARNED 35. Experience and results from the PURCAE, as well as the World Bank’s experience under the Global Food Crisis Program, are reflected in the proposed AF. Three major lessons have informed the design of this AF. • Short-term crisis response projects are necessary but can be especially challenging to implement in fragile states. It is imperative over the long term for governments to lay a foundation for development. However, governments must still respond to crises when they occur by implementing emergency programs featuring simple designs and targeting mechanisms, with assistance from the donor community. The proposed project will keep PURCAE’s simple design, which has achieved successful outcomes. • Outsourcing an emergency project implementation to well-established international institutions can be effective in fragile states where weak institutions and cumbersome procedures prevent prompt service delivery. In the case of Chad, the two implementing UN agencies, WFP and FAO, performed satisfactorily with tangible results achieved on the ground with a 100 percent disbursement rate. This led the GoC to use this same implementation arrangement with the UN agencies for the AF. At the same time, involving national institutions early on in helping to build their capacities in this humanitarian area is critical for future successes. This is a step forward in preparing Chad to better respond to crisis when it accesses the IDA-18 refugee subwindow. • Good results frameworks reported in timely manner and sound M&E arrangements are essential for emergency operations. The UN agencies work with client countries to identify practical mechanisms for M&E of project activities. Both ministries (MPIAE and MLAP) benefitting from appointed focal points in PURCAE that will be maintained to work closely with the project coordination unit in supervising the project implementation. FAO and WFP regularly sent good quality reports to the GoC and the World Bank on a quarterly basis as stipulated in the financial agreement. These arrangements will be retained for the AF. In addition, given the persistently volatile, risky security and fragile environment under which PURCAE is being 24 implemented, the GoC and the World Bank will conduct iterative beneficiary monitoring 6 to strengthen the M&E system, replicating the successful system established in Northern Mali. V. WORLD BANK GRIEVANCE REDRESS Communities and individuals who believe that they are adversely affected by a World Bank (WB) supported project may submit complaints to existing project-level grievance redress mechanisms or the WB’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed to address project-related concerns. Project-affected communities and individuals may submit their complaints to the WB’s independent inspection panel, which determines whether harm occurred or could occur because of WB noncompliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the World Bank's attention and the Bank’s management has been given an opportunity to respond. For information on how to submit complaints to the World Bank’s corporate GRS, please visit http://www.worldbank.org/GRS. For information on how to submit complaints to the World Bank Inspection Panel, please visit www.inspectionpanel.org. 6 The IBM System is a feedback mechanism elaborated to inform on what is not working during the project implementation phase. On regular basis, this mechanism identifies and quantifies distortions and shortcomings that would put at risk the achievement of project objectives. Those distortions are brought to the attention of project leaders and project managers who use them to improve the project management. Contrary to other systems that are complex, lengthy, and expensive, the main advantage and innovation of the IBM system is its relatively simple, low cost, rapid and iterative (with high frequency) feedback loop that collects information directly from beneficiaries and produces brief reports on challenges that can be addressed by the project team. It repeats data collection regularly, creating a positive and self-reinforcing cycles of improvement. Given that little information is collected on small samples, analysis is rapid and inexpensive. It is a mechanism that help improve project results gradually and quickly without need of lengthy and expensive evaluations. 25 Annex 1A: Revised Results Framework and Monitoring Indicators . Project Development Objectives Original Project Development Objective - Parent: The project development objective is to improve the availability of and access to food and livestock productive capacity for targeted beneficiaries affected by the conflict in the Central African Republic on the Recipient's territory. Proposed Project Development Objective - Additional Financing (AF): No change Results Core sector indicators are considered: Yes Results reporting level: Project Level . Project Development Objective Indicators Corpor Status Indicator Name Unit of Measure Baseline Actual(Current) End Target ate Revised Number of agricultural input Number Value 0.00 36385.00 45200.00 packages distributed to Date 03-Mar-2015 15-Aug-2017 30-Sep-2019 beneficiaries in the target areas Comment Revised Number of direct beneficiaries Number Value 0.00 32460.00 217460.00 of food voucher transfers Date 03-Mar-2015 15-Aug-2017 30-Sep-2019 Comment Revised Number of livestock (cattle) Number Value 0.00 2451460.00 3551460.00 vaccinated Date 03-Mar-2015 15-Aug-2017 30-Sep-2019 Comment Revised Direct project beneficiaries Number Value 0.00 145540.00 330000.00 Date 03-Mar-2015 15-Mar-2017 30-Sep-2019 Comment 26 Revised Female beneficiaries Percentage Value 0.00 51.30 52.00 Sub Type Supplemental Intermediate Results Indicators Corpor Status Indicator Name Unit of Measure Baseline Actual(Current) End Target ate Marked for Direct food transfers Metric ton Value 0.00 0.00 6492.00 Deletion Date 03-Mar-2015 15-Aug-2017 30-Apr-2017 Comment New Number of improved fireplaces Number Value 0.00 0.00 15000.00 fabricated and distributed Date 30-Sep-2019 Comment New Percentage of beneficiary Percentage Value 0.00 0.00 75.00 satisfied by the project's Date 30-Sep-2019 intervention Comment New Number of beneficiary of Number Value 0.00 0.00 36000.00 conditional food assistance Date 30-Sep-2019 Comment New Number of drinking water Number Value 0.00 0.00 240.00 wells rehabilitated Date 30-Sep-2019 Comment Marked for Blanket supplemental feeding Metric ton Value 0.00 30.00 14.00 Deletion Date 03-Mar-2015 30-Apr-2016 30-Apr-2017 Comment Revised Households receiving breeding Number Value 0.00 1000.00 2000.00 stock Date 03-Mar-2015 15-Aug-2017 30-Sep-2019 27 Comment Revised Animal feed distributed Metric ton Value 0.00 2346.00 2850.00 Date 03-Mar-2015 15-Aug-2017 30-Sep-2019 Comment Revised People trained Number Value 0.00 1456.00 1956.00 Date 03-Mar-2015 15-Aug-2016 30-Apr-2017 Comment Revised Decentralized staff trained Number Value 0.00 60.00 100.00 Sub Type Date 03-Mar-2015 15-Aug-2017 30-Sep-2019 Breakdown Comment Revised People participating in training Number Value 0.00 1156.00 1656.00 sessions on conflict resolution Date 03-Mar-2015 15-Aug-2017 29-Jul-2019 Comment . 28 Annex 1B: PURCAE-Additional Financing - Revised Results Framework D=Discontin ued Cumulative Target Values C=Con- Baseline Responsibility tinued (Achievements Data Source/ Frequency for Data N=New as of June 30, YR 1 (September YR2 (end of Methodology project target; Collection R=Revised 2017) 30, 2018) September 30, 2019) PDO-level indicators Indicator one: Number of agricultural input packages R Number 36,385 40,790 45,200 Quarterly M&E and PRAPS, FAO, distributed to surveys WFP, NGOs beneficiaries in the target areas Indicator two: M&E and Direct project surveys PRAPS, WFP, R Number 32,460 124,960 217,460 Quarterly beneficiaries of NGOs vouchers Indicator three: M&E and PRAPS, FAO, Number of surveys NGOs R Number 2,451,460 3.001,460 3,551,460 Quarterly livestock (cattle) vaccinated Indicator four: M&E and PRAPS, FAO, Direct project R Number 145,540 237,770 330,000 Quarterly surveys UNIEF, WFP, beneficiaries NGOs Indicator five: M&E and PRAPS, FAO, Female R Percentage 51.30 52 52 Quarterly surveys UNIEF, WFP, beneficiaries NGOs 29 Component A A.1: Number of M&E and PRAPS, improved surveys UNICEF, NGOs fireplaces N Number 0 10,000 15,000 Quarterly fabricated and distributed A.2: Number of M&E and PRAPS, FAO, beneficiary of surveys NGOs N Number Quarterly conditional food 0 92,900 92,900 assistance A.3: Number of M&E and PRAPS, drinking water well N Percentage 0 150 240 Quarterly surveys UNICEF, NGOs rehabilitated Component B B.1: Households M&E and PRAPS, FAO, receiving breeding R Number 1,000 1,000 2,000 Quarterly surveys NGOs stock B.2: Animal feed M&E and PRAPS, FAO, R MT 2,346 2,700 2,850 Quarterly surveys NGOs distributed B.3: People trained M&E and PRAPS, FAO, R Percentage 1,456 1,750 1,956 Quarterly surveys UNICEF, WFP, NGOs People M&E and PRAPS, FAO, participating in surveys UNICEF, WFP, R Number 1,156 1,450 1,656 Quarterly training sessions on NGOs conflict resolution B4: Decentralized M&E and PRAPS, FAO, staff trained R Number 60 90 100 Quarterly surveys NGOs 30 B.5: Percentage of M&E and PRAPS, FAO, beneficiaries N Percentage 0 60 75 surveys UNICEF, WFP, Quarterl satisfied by the NGOs y project intervention Discontinued Indicators Direct food Quarterl M&E and PRAPS, WFP, transfer D Metric 6492 y surveys NGOs Ton Blanket D Metric ton 30 Quarterl M&E and PRAPS, WFP, supplemental y surveys NGOs feeding 31 Annex 2: Detailed Project Description 1. The AF emergency operation is designed to continue to address three issues of concern: (i) the persistent deteriorating food and nutrition security and wellbeing of refugees and returnees and host communities; (ii) the risk of livestock diseases, including epidemics; and (iii) increased pressure on a fragile ecosystem and potential conflicts arising from that pressure. The proposed AF for the emergency food and livestock crisis response project aims to support the immediate needs of affected populations and assist in restoring their livelihood capacity through: (i) the provision of vouchers or cash transfer for food and vouchers for works for returnee and refugee households; (ii) the provision of seed and inputs to kick start agricultural activities for returnee and refugee farmers with access to land, and for households in host communities; small processing unit and storage facilities to address post-harvest loss and promote markets; (iii) a livestock stabilization intervention by providing vaccines, supplemental feed, and breeding stock; and vaccination parks, and (iv) an awareness-building and information campaign to address potential conflicts that may arise from increased pressure on natural resources by providing improved fireplaces. The project will also provide access to drinking water for refugees, returnees and host communities. This AF was developed in partnership between the World Bank team and the MPIAE, the MLAP, the MEDP, and all the stakeholders including the returnees, refugees and host communities. A. Project Development Objective (PDO) 2. The PDO, “to improve the availability of and access to food and livestock productive capacity for targeted beneficiaries affected by the conflict in the Central African Republic in the Recipient’s territory,” is still relevant and maintained. The PDO will be achieved through: (i) targeted food assistance that would help GoC to improve food security of refugees and returnees through the provision of vouchers/cash transfers; (ii) provision of agricultural production inputs and equipment to restore (displaced populations) and increase (host communities) food production capacities; and (iii) provision of vaccines and feed to stabilize the livestock production capacity of affected populations in a context of pressures on the natural resource base. B. Beneficiaries and Geographic Scope 3. The project’s main beneficiaries will remain the refugees, returnees, and host communities most affected by the CAR crisis and vulnerable to malnutrition. The prospective beneficiaries are already being identified based on lessons learned in PURCAE. Beneficiaries will be selected based on information from key agencies such as FAO, UNHCR, WFP, UNICEF, the International Office for Migration (IOM), the Office for the Coordination of Humanitarian Affairs (OCHA) and the National Welcoming Center for Reinsertion and Reintegration (NWCRR), as well as the extensive knowledge of local NGO partners. Table A2.1 lists the categories of potential beneficiaries. At the community level, a community’s socioeconomic profile (with special consideration given to the proportion of female-headed households and households with an agricultural production background), coping strategies, food stocks, food consumption patterns, and proportion of households hosting displaced persons, will be considered. Regular consultations with affected populations and a communication campaign with local religious and community leaders will be held to inform communities about unconditional and conditional food assistance, mechanisms for preventing conflicts, and other aspects of the project. Regular meetings will be held to retain and validate the activities selected in terms of planning, implementation, monitoring, and decision-making. 32 4. Targeted areas in PURCAE will be Moyen Chari, Mandoul, Logone Oriental, and Salamat, where the bulk of refugees and returnees are located. For certain livestock stabilization activities under cCmponent B (vaccinations and feed), closed animal transit and gathering areas will be considered Table A2.1: Beneficiary Category by Type of Project Intervention Immediate and Short-Term Food Security Measures Livestock Stabilization Measures Access to Crop Livestock activities improved production Beneficiary Unconditional Conditional fireplace activities Conflict Category food food and (seed, prevention assistance assistance potable fertilizer, Vaccines Feeds Restocking measures water small equipment) Refugees x x x x x x x x Returnees x x x x x x x x Host x x x x x x communities. C. Citizen Engagement 5. Potential risks, such as social tensions in host communities, may arise by perceived inequities in the selection of beneficiaries. The project will mitigate this risk by focusing on citizen engagement measures, including: (i) engaging in a proactive communication strategy that will explain to local governments, beneficiaries and the general public the benefits from the project for various communities; (ii) applying clear and transparent criteria for the selection of interventions; (iii) developing robust information request and grievance redress measures for the project activities as a whole (not only for safeguards-related issues). The MPIAE and the MLAP have designated focal points in each department to act as liaisons for communicating project-related issues and addressing information requests, feedback, and grievances. Training will continue to be provided to foster the capacity to share timely information with beneficiaries about project-funded activities, channel beneficiary feedback to the project management and other decisionmakers at the local and central levels, and facilitate resolution of grievances. Quarterly information and consultation sessions will be held in every host community, and refugee/returnee camp where project activities occur, allowing the beneficiary population to receive information, provide feedback, clarify doubts, and express any existing grievances. In this context, the World Bank will put in place the IBM system, which is a feedback mechanism elaborated to inform on what is not working during the project implementation phase. D. Project Components 6. Component A: Targeted food assistance (US$7.80 million). This component seeks to improve food security for the affected communities and help them establish livelihoods by preventing them from having to sell their limited productive assets. It would help finance: (i) unconditional food assistance for refugees and returnees most vulnerable to food insecurity; (ii)conditional food assistance for returnees/refugees and host families through their participation in activities to create or rehabilitate 33 sustainable productive assets to enable early recovery; and (iii) access to improved livelihood through sustainable cooking systems that preserve environmental resources, and access to drinking water. The implementation of activities will be accompanied by awareness campaigns to encourage behavioral change by conveying good practices in nutrition, infant, family health, and hygiene. 7. Given the acceptable prevalence of acute malnutrition – although chronic malnutrition and anemia still occur – no specialized products will be distributed under the AF for the prevention of malnutrition, as was the case during PURCAE. Unconditional and conditional cash transfers will be delivered through a mechanism adopted in this project based on the creation and distribution of "coupon codes" with a financial service provider and telephone operator. 8. WFP is in the process of setting up a data and transfer management system for vulnerable populations called SCOPE. SCOPE is a digital platform that enables real-time data management, which enables WFP to better understand its beneficiaries and provide them with more personalized and secure assistance. SCOPE is used to plan end-to-end delivery interventions and cycles, as well as the production of data required for reporting on distributions. SCOPE also enables beneficiaries to be assisted in a secure, efficient and transparent way by means of cards with electronic chips ("SCOPECARDS") for each household that is entitled to assistance. These cards include the biometric information of each head of household or primary recipient of the assistance (and an alternate) to verify the identity of the person representing the household at the distribution site. Through SCOPE, WFP will download electronic vouchers on payment terminals to reload the beneficiaries' cards and allow them to make transactions on other terminals. WFP will provide these payment terminals to the financial service provider to secure transactions by biometric verification. The use of this system will also enable reliable reports to be generated as result of the distribution. 9. Subcomponent A1: Unconditional food assistance (US$2.70 million). This subcomponent will allow unconditional food assistance to 93,450 people (18,690 households) identified as the most vulnerable among the total refugee/returnee population (poor and very poor). This assistance will last only 45 days during the lean season from September to November 2017, instead of 12 months as in the case of PURCAE. The WFP will provide cash/vouchers to purchase a local standards food basket (currently valued at US$0.4 per day). The process is based on “coupon codes" with a financial service provider and/or telephone operator. The codes are issued by the financial service provider in accordance with the instructions of WFP, representing the amount in electronic money that the beneficiary may convert to cash either from the authorized distributors or from food at trade fairs specifically organized on the distribution site, where local traders under contract with WFP offer a pre-established list of 15 to 20 products. 10. Subcomponent A2: Conditional food assistance (US$3.40 million). This subcomponent is newly introduced and will support vulnerable refugees, returnees and selected host communities in the targeted areas. Beneficiaries will receive food assistance in the form of a monetary transfer (voucher or cash) on a conditional basis upon the participation of a member in their sustainable productive assets building. At the end of the unconditional distributions, 18,580 households or 92,900 people will have opportunity to participate in livelihood activities for three months. Beneficiaries would be refugees and returnees who received unconditional assistance, host communities and refugees/returnees with no unconditional food assistance. 11. Each participant will receive a daily monetary transfer valued at US$0.28 for three months to enable households to meet their food needs. The assets-building activities will be organized by WFP in 34 collaboration with United Nations partners, NGOs and state technical services of the MPIAE and the MLAP, and through consultations with beneficiaries on their urgent needs. 12. Selected activities would include: (i) lowlands development for offseason crops (market gardening, rice cultivation); (ii) soil defense and restoration; (iii) protection of crop areas; and (iv) light rehabilitation of feeder roads to open production sites and promote markets. Selection would be made through participatory planning workshops to bring together the beneficiaries and all the local actors. The AF will contribute to the overall effort to strengthen the resilience of local communities and the self- reliance of returnees through social mobilization to participate in building community infrastructure. This strategy would contribute to meeting beneficiaries’ immediate food needs while creating conditions for sustainable food security. It would also have indirect positive spillover effects on the lives of other village members who do not directly benefit from the project. 13. Subcomponent A.3: Access to sustainable cooking systems and drinking water (US$1.70 million). Issues that are frequently raised during field visits pertain to difficulties accessing: (i) sustainable cooking systems that produce nutritious food and preserve natural resources, given the scarcity of firewood; and (ii) access to potable water. Both elements significantly contribute to improve the nutritional status of the returnees/refugees and host communities. This subcomponentvwhich is newly introduced and will therefore finance: (i) the distribution and/or construction of 15,000 improved mobile sheet metal fireplaces and/or building of improved bench-top homes for all returnee/ refugee families and host communities, thereby reducing wood consumption by 50 percent; and (ii) 35 information and awareness sessions on the use of improved fireplaces. A training of trainers will be organized to supervise women on the manufacture of improved banco fireplaces. Training in cooking techniques, processing and preservation of food would be provided to beneficiaries. Additionally, over 50 culinary tests and six sessions of environmental and nutritional education will be conducted at th household level. 14. The project will also finance the access to drinking water in sufficient quantity and quality by rehabilitating 240 boreholes in the southern zone of Chad. This undertaking would prevent diarrheal disease and improve the nutritional status of beneficiaries and complement the hygiene promotion and sanitation activities underway in these areas. 15. Component B: Agricultural production and livestock stabilization (US$8.20million). This component will restore and maintain crop and livestock production capacity among affected populations in a context where pressure on the natural resource base is increasing rapidly. Hence, the AF-PURCAE will: (i) finance the provision of inputs, small irrigation equipment, light infrastructure, post-harvest activities, acquisition of veterinary medicines and vaccines to support the CSA in preventing epizootics, purchase of animal feed and additional livestock activities; (ii) strengthen the capacities of farmers and livestock producers' organizations; and (iii) contribute to conflict resolution and pacific coexistence. New activities will be introduced to sustain PURCAE’s gains, notably through: (i) the introduction of cereal processing units and promoting marketing of food surplus; (ii) strengthening the production capacity of seed multipliers and promoting their access to information on integration into the national seed sector; (iii) supporting breeders in anticipation of the numerous challenges arising from the increasing numbers (94 million cattle) of Chadian livestock, through the rehabilitation of light infrastructure (markets, parking area, water points, and vaccination parks). 16. It is worth mentioning that due to the appreciation of the SDR at the time of the project implementation, only US$9.7 million out of the expected US$11 million were transferred to FAO. Delay in transmitting financial statements at the beginning which was then addressed, and weak communication 35 during PURCAE implementation between FAO and the GoC contributed to a cost overrun despite a solid justification. Since the AF is expected to be signed by October 31, 2017, and the amount of US$1.50 million is below 40 percent of the proposed funding (US$4.40 million), a retroactive financing rule will apply to reimburse FAO’s expenses incurred in implementing PURCAE. Part of the AF proceeds under Component B will therefore cover funding gap caused by the currency exchange losses during the implementation of the parent project which was prefinanced by FAO in the amount of US$1.50 million. Taking into account the FAO prefinancing, a retroactive financing has been considered and actual new resources to cover the cost of Component B’s activities in the AF will be reduced accordingly, amounting to US$6.70 million. Component B includes three subcomponents, described below: 17. Subcomponent B1: Support for agricultural production (US$2.88 million). This subcomponent will provide technology packages (improved seed, fertilizer, irrigation equipment and tools, small infrastructure) to approximately 8,240 affected households (returnee/refugee populations and host communities, 52 percent of which are women-headed households), to restore their production capacities. The project will finance about 583 MT of improved seeds (vegetable rain-fed and market gardening, rice, sorghum, millet) and 600,000 of cassava cutting needs to cultivate about 15,000 hectares, with an expected production estimated at 15,000 MT. In addition, it will finance 100 small irrigation equipment for 100 groups; 100 cereal processing units for women; 1,000 cereal storage barrels for seed banks; 20,000 linear meters of fence wire for market gardening producers, and 10 seed banks. 18. Subcomponent B.2: Support for Livestock Stabilization (US$2.82 million). The objective of this subcomponent is to restore and maintain the production capacity of the livestock activities of the affected 38,000 herder households. Activities will include: (i) vaccination campaigns covering 1,100,000 animals; (ii) a targeted animal feeding program with the distribution of 480 MT of feed for 1,000 households in areas where grazing land has been drastically reduced; and (iii) a small ruminant stock replenishment program for 1,000 households mostly headed by women. New activities will include the distribution of 24 forage mowing kits and 10 pieces of grinding and forage equipment. The herder households will benefit from the services of the MLAP relayed by the community agents of animal health trained and equipped for the vaccination campaigns. Moreover, 500 ACSA will be trained and equipped to help sustain this intervention. 19. Subcomponent B.3: Support for conflict mitigation (US$1.00 million). This subcomponent will contribute to mitigating conflicts among users of natural resources, help reducing the pressure on limited grazing areas, and prevent overuse of a fragile ecosystem. Activities will include: (i) the participatory identification and marking of 150 kilometers of transhumance corridors, the rehabilitation of 10 pastoral wells and livestock parking areas; (ii) the organization and facilitation of forums aimed at promoting peaceful coexistence (to include about 1,000 participants composed of transhumant herders, sedentary groups, refugees, returnees, community leaders, NGOs, and technical trainers); (iii) the establishment of committees of elders, and the implementation of systems for M&E and follow-up activities. This subcomponent will be implemented by FAO through NGOs and decentralized units of the MLAP. 20. Table A2.2 shows the number of additional refugee and returnee households in the targeted regions who are integrated into host communities, and the total number of host community households. The activities of this subcomponent will reach all refugee and returnee households and approximately one-third of the host community households in the target villages where refugees and returnees have been integrated into the local community. 36 Table A2.2: Number of Refugees, Returnees, and Host Community Households Targeted under the Project’s Component B, by Region Name of village where Number of refugee/returnee Site of refugee/returnee Number of host Region households are returnee camp households in host households integrated in host community communities Danamadja Lapia Kana Danamadja Ramadji 600 3,000 Sandana Logone Kotibeye Oriental Bessey Nangkasse 315 Beraba 500 Ancient sites of Doba Bédogo II 212 1,235 (Kobiteye) Ferick Koubou 105 Mainani 103 Subtotal: 1,835 4,235 Maiba 60 430 Kemdere 270 1,938 Doyaba Mainibian 180 1,292 Moyen Chari Doyaba village 261 1,305 Maingama Maigama 300 2,153 Sido Sido 700 5,024 Subtotal: 2,542 12,710 Mandoul Moissala Moïssala 2,252 2,350 Subtotal: 2,252 2,350 Salamat Am Timan Am Timan (and 1,415 5,650 surroundings) Subtotal: 1,415 5,650 TOTAL 8,740 24,945 21. Most cereal and legume crops are cultivated during the rainy season (April to October). During the dry season (November to March), fruit and vegetable crops are grown in garden plots in small, low- lying areas. The activities of this subcomponent will begin during the 2017–2018 dry season, with support 37 to households for fruit and vegetable production. Table A2.3 summarizes the crop production activities, number of beneficiaries, seed inputs, and expected output. Table A2.3: Number of Beneficiaries, Inputs, and Expected Outputs for Crop Production Activities Total expected Total quantity of production (t) Number of Crop production improved seed and Total area from beneficiary activity planting material cultivated (ha) two dry seasons households distributed (kg) and one rainy season) Vegetables and 2,500 2,500 62,5 75 Fruits Millet 5,000 4,000 2,800 4,000 Sorghum 5,000 4,000 3,200 Groundnut 160,000 4,000 34,800 4,000 Rice 160,000 2,000 3,000 240 Cassava cuttings 600,000 30 600 8,740 14,092.5 14,475 22. Seed for dry season garden production will be purchased by FAO in international markets. Seed for the rainy season crops, including coarse grains, groundnuts, rice, and cassava, will be purchased in both regional and local markets. To ensure that planting material is locally available in sufficient quantities, the project will also support a seed multiplication network consisting of groups trained under previous FAO projects. Arrangements will be made to ensure that the planting materials conform to quality standards, that the varieties distributed are adapted to the agroecological zones where they will be grown, and that they are validated by the authorities of the MPIAE. 23. Criteria for selecting beneficiary households will be detailed in the updated project implementation manual (PIM) and include access to land and experience in agricultural activities. Access to land has been facilitated by village leaders in all the host communities to allow refugees/returnees to produce their own food. A rapid assessment carried out by FAO revealed that at least 50 percent of the returnees/refugees had been farmers in CAR and are willing to resume agricultural activities if given the opportunity. 38 Annex 3: Implementation and Institutional Arrangements A. Overview of Institutional and Implementation Arrangements 1. The proposed AF to the PURCAE seeks to improve the availability of and access to food and livestock productive capacity for targeted beneficiaries affected by the conflict in the Central African Republic (CAR) on the Recipient’s territory. The project has two components: (i) component A: targeted food assistance (US$7.80 million IDA) and (ii) Component B: agricultural production and livestock stabilization (US$8.20 million). The main beneficiaries are refugees and returnees displaced by the conflict in CAR beginning in late 2013 and who have resettled in several locations in southern Chad. Host households and communities will also benefit from some of the proposed project interventions. 2. To ensure that the proposed emergency project is implemented efficiently and successfully, the GoC will enter contractual agreements with three specialized UN agencies as service providers. WFP will implement activities related to subcomponents A1 and A2 of Component A (targeted food assistance), while UNICEF will implement the Subcomponent A3. FAO will be responsible for the implementation of activities related to subcomponents B1, B2 and B3 of Component B (agriculture production and livestock stabilization). The UN agencies are already on the ground and have an extensive network of contacts with NGOs and local government agencies that will allow speedy delivery of services like FAO and WFP did with the implementation of PURCAE. WFP has an appropriate team in place, to be complemented by regional and central specialized technical assistance when required. To ensure good management and execution of Component B, FAO will create a management team that will include: (i) a project coordinator in N’Djamena office; (ii) two agronomists, one in each suboffice; (iii) a livestock specialist; and (iv) a fiduciary specialist. UNICEF would also reinforce its field office with specialists in cooking system and drinking water as needed. 3. The respective contracts to be signed between the GoCand the UN agencies will include inter alia details of activities to be provided, technical and financial reporting requirements, reporting frequency, safeguards issues, and M&E during and at the end of project implementation. The GoC will be responsible for overall coordination and reporting to the World Bank. The existing project coordination unit of PRAPS within the MLAP will be responsible for coordination and oversight of the proposed project’s implementation. 4. Since the GoC will contract with the UN agencies as service providers to execute the project, a customized review of the financial arrangements of these suppliers was performed in accordance with World Bank guidance regarding financial management (FM) arrangements in UN organizations. The assessment concludes that the FM arrangements meet requirements under OP/BP 10.00, but that the overall FM residual risk rating is “Substantial” given the inherent risk at the country, entity, and project levels. The remainder of this annex incorporates the findings from the review and provides additional detail on the context, specifically, issues in public financial management at the national level; FM risks; mitigation measures and specific arrangements for the proposed project; and procurement arrangements and procedures. 39 B. Financial Management, Disbursements and Procurement 5. The FM arrangements for the AF will be based on the existing arrangements in place under the ongoing Chad Emergency Food and Livestock Crisis Response Project (P151215). Two renewed MoUs will be signed with WFP and FAO and a new one with UNICEF. 6. Staffing within the UN agencies is deemed adequate to handle additional activities. During the parent project implementation, delays were experienced in submitting FAO-related audited financial statements required under the respective contracts signed with the GoC at the beginning. Actions were taken to correct that. Overall, the quality of the reports was deemed satisfactory by the World Bank. 7. The overall risk for the AF is rated “Substantial” mainly because of the inherent risk at the country, entity, and project levels. It is considered that the financial management arrangements satisfy the World Bank’s minimum requirements under OP/BP 10.00, and therefore is adequate to provide, with reasonable assurance, accurate and timely financial management information on the status of the project required by World Bank. C. Overall Fiduciary Implementation Arrangements and Staffing 8. The MEDP Planning will be responsible for the project. However, responsibility for overall coordination, M&E, and consolidated reporting will be handled by the PRAPS PIU which has been reassessed as satisfactory and can coordinate the project implementation. 9. Accounting, Internal Control, and Internal Auditing: The UN Agencies will keep accurate accounts and reports in accordance with their respective financial regulations and rules and the World Bank’s procedures. They will also maintain separate ledger accounts to which all WFP, FAO and UNICEF receipts and disbursements for the purposes of procuring the supplies financed under the AF will be recorded. 10. The internal control and internal audit arrangements under the AF the PRAPS’s PIU, complemented by the UN agencies’ related procedures for the day-to-day management of project activities. 11. External Auditing: Since no funds will be managed by the GoC, 100 percent of funds will be transferred directly to the UN agencies, and the World Bank will rely on their external audit arrangements to fulfill the fiduciary requirements. The UN agencies will provide to the GoC and the World Bank a copy of their audited accounts and the external auditors’ report thereof within fifteen (15) days of these becoming presented to their respective executive boards. A waiver of the audit requirements was requested and granted during the original project preparation. However, mechanisms will be put in place to mitigate the risk that funds will be used inappropriately. Such mechanisms will include (i) at least two field visits during the first 12 months of the project implementation period; (ii) identification and use of a national agency with relevant qualifications and experience to carry out physical inspections of goods and services delivery by the UN agencies; and (iii) requests that WFP, FAO and UNICEF submit quarterly IFRs to the World Bank to show the use of funds, and any unused balance by loan closing that needs to be refunded to the World Bank. The supervision intensity will be adjusted over time, considering the project’s FM performance and FM risk level. In addition, the government will be responsible for ensuring that required goods and services are delivered to the intended beneficiaries during implementation. Where 40 deemed appropriate, however—for example, if UN agencies’ systems or reports have shown weaknesses or deficiencies—the Bank team may request the government to conduct physical inspections of goods and services delivered by the UN agencies. Finally, the World Bank’s FM team will have adequate access to the financial information, documents, and records for activities implemented by the UN Agencies on behalf of the GoC. 12. Flow of Funds Arrangement: No designated account for the project will be opened in a commercial bank. Upon AF effectiveness, applications for withdrawal of proceeds will be prepared by the GoC, the PIU and submitted to IDA. The special World Bank disbursement procedures will be used to establish a blanket commitment to allow the amount to be advanced. Funds withdrawn from the IDA loan account will be deposited directly into the UN bank accounts provided by the UN agencies for their respective project subcomponents and component. The amount advanced will be documented through the quarterly unaudited IFRs, since actual expenditures are incurred by the UN implementing agencies. 13. Disbursement: There will be a change in the disbursement arrangement with the creation of two new subcomponents with respect to the introduction of the conditional food assistance and the access to drinking water and improved fireplaces. Table A3.1: Expenditure Categories and Funding Percentages Category Amount of the Financing Percentage of Expenditures Allocated (Expressed in SDR) to be Financed (Inclusive of Taxes) (1) Goods, works, non-consulting 1,900,000 100 services, consultants’ services, food assistance, food packages and training under Component A.1 of the project (2) Goods, works, non-consulting 2,400,000 100 services, consultants’ services, food assistance, food packages and training under Component A.2 of the project (3) Goods, works, non-consulting 1,200,000 100 services, consultants’ services and training under Component A.3 of the project (4) Goods, works, non-consulting 5,900,000 100 services, technology packages, consultants’ services and training for Component B of the project Total Amount 11,400,000 14. Procurement: Procurement for the proposed project will be carried out in accordance with the World Bank “Guidelines: Procurement of Goods, Works, and Non-Consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers,” dated January 2011, and “Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credit and Grants by World Bank Borrowers,” dated January 2011, and the provisions stipulated in the Legal Agreement. Procurement (goods, works and non-consulting services) or consultant selection methods, prequalification, estimated costs, prior review requirements, and timeframes will be agreed in the Procurement Plan. The Procurement Plan will 41 be updated at least annually or as required to reflect the actual project implementation. As an emergency operation, this project is entitled to the specificity and the flexibility described in paragraph 12 of OP 10.00 (Investment Project Financing). 15. Advertising: A comprehensive General Procurement Notice (GPN) will be prepared by the GoC and published in the United Nations Development Business online (UNDB online) following Board approval, to announce major consulting assignments and any international competitive bidding (ICB). The GPN shall include all ICB for goods and non-consulting services contracts and all large consulting contracts (specifically, those estimated to cost US$200,000 or more). In addition, a specific procurement notice is required for all works and goods to be procured under ICB in UNDB online. Requests for expressions of interest (EOIs) for consulting services expected to cost more than US$200,000 shall be advertised in UNDB online. An EOI is required in the national gazette, a national newspaper, or an electronic portal of free access for all consulting firm services regardless of the contract amount. In the case of national competitive bidding (NCB), a specific procurement notice will be published in the national gazette, a national newspaper, or an electronic portal of free access. Contract awards will also be published in UNDB, in accordance with the World Bank’s Procurement Guidelines (paragraph 2.60) and Consultants Guidelines (paragraph 2.31). 16. Procurement Environment: No special exceptions, permits, or licenses need to be specified in the credit agreement; since the Procurement Code dated December 5, 2003 allows World Bank procedures to take precedence over any contrary provisions in local regulations. 17. Procurement of Goods and Non-Consulting Services: Procurement of goods and non-consulting services under this project consists mainly of suppliers for food security, such as feeding, feeds, small- scale storage equipment, vouchers, agricultural equipment, vaccines, animal feed, seed for food production, and related services. 18. Given the circumstances and the emergency nature of this operation, these supplies are expected to be procured through contracts signed with UN agencies by the Borrower. These supplies will be procured, shipped, delivered, and related services provided in accordance with the terms of agreements with UN agencies and their respective regulations, rules, procedures, and administrative instructions for procurement and finance. There are no ICBs or NCBs under World Bank Procurement Guidelines on this operation. The following procurement methods will be used: shopping, direct contracting, and procurement from United Nations agencies. 19. Procurement of goods and non-consulting services, including those readily available off-the-shelf, maintenance of electronic office equipment, and other services such as printing, and editing, which cannot be grouped into bid packages of US$100,000 or more, may be procured through prudent shopping in conformity with clause 3.5 of the Procurement Guidelines. Direct contracting shall also be used in accordance with the provisions of paragraphs 3.7 of the Procurement Guidelines, with the World Bank’s prior agreement. 20. Selection of Consultants: Consulting services will be used mainly for technical assistance for food security activities, including training. The consulting services will be procured with the most appropriate method among the following, which are allowed by World Bank guidelines and included in the approved Procurement Plan: quality- and cost-based selection, selection under a fixed budget, least-cost selection, selection based on consultants’ qualifications (CQS), selection of UN agencies, selection of individual consultants, and single source selection (SSS) for firms and individual consultants. Selection based on CQS 42 will be used for assignments that shall not exceed US$300,000. The SSS shall also be used in accordance with the provisions of paragraphs 3.8 and 3.9 of the Consultants Guidelines, with the World Bank’s prior agreement. All terms of reference will be subject to World Bank prior review. 21. Assignments of engineering designs and contract supervision more than US$200,000 and all other technical assistance assignments above US$100,000 must be procured based on international short-lists and in accordance with the provisions of paragraph 2.6 of the Consultants Guidelines. 22. Consultants for services meeting the requirements of Section V of the Consultants Guidelines will be selected under the provisions for the selection of individual consultants, through comparison of qualifications among candidates expressing interest in the assignment or approached directly. 23. Institutional Arrangements for Procurement and Capacity Assessment, Including Risk Mitigation Measures: The PRAPS’s PIU will prepare and manage contracts signed with the UN agencies, namely WFP, FAO, and UNICEF and the GoC. 24. Identified Risks and Proposed Mitigation Measures: The risk rating for procurement is considered as “Moderate” given that the rules and regulations of the three relevant UN agencies that manage activities under both project components are acceptable to the World Bank. 25. Procurement Plan: A first draft of a simplified Procurement Plan for project implementation, which provides the basis for the procurement methods, has been developed. This plan covers 18 months of project implementation, and has been reviewed, discussed, and agreed upon by the Borrower and the project team. It will be available in the project’s database, and a summary will be disclosed on the World Bank’s external website once the project is approved. The Procurement Plan will be updated in agreement with the project team annually or as required to reflect the actual project implementation needs and improvement in institutional capacity. 26. Publication of Results and Debriefing: Publication of results of the bidding process is required for all ICBs, limited international biddings, and direct contracting. Publication should take place as soon as the no-objection is received, except for direct contracting, which may be done on quarterly basis and in a simplified format. Publication of results for NCBs and shopping should follow the requirements of the procurement code of the GoC. The disclosure of results is also required for the selection of consultants. All consultants competing for an assignment should be informed of the results of the technical evaluation (number of points that each firm received) before the opening of the financial proposals, and the results should be published at the end of the selection process. The publication of results of consultant selection applies to all methods but may be done quarterly and in a simplified format for CQS and SSS. Results may be published through Client Connection. Losing bidders/consultants shall be debriefed on the reasons why they were not awarded the contract if they request explanation. 27. Fraud and Corruption: The procuring entities as well as bidders, suppliers, contractors, and services providers shall observe the highest standard of ethics during the procurement and execution of contracts financed under the program in accordance with paragraphs 1.16 of the Procurement Guidelines and paragraphs 1.23 of the Consultants Guidelines. The “Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants,” dated October 15, 2006 and revised in January 2011, will apply to this project. The capacity assessment has recommended supervision missions to visit the field at least two times a year. If need be, a post review of procurement actions will be conducted on an annual basis. 43 28. Prior Review Thresholds for Consultant Services: Consultant services estimated to cost above US$200,000 for firms and US$100,000 for individuals per contract, and single source selection of consultants (firms and individuals) will be subject to prior review by the World Bank. Similarly, all audit contracts will be subject to prior review, as will be the first contracts to be awarded in accordance with each method of selecting consulting firms and individual consultants, regardless of the contract amount. Short lists of consultants for assignments of engineering designs and contract supervisions estimated to cost less than US$200,000 and all other consultancy assignments with an estimated cost that does not exceed US$100,000 per contract, may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultants Guidelines. 29. Procurement Risk Rating: The procurement risk rating is deemed “Moderate” since the rules and regulations of the qualified UN agencies that will manage activities under the two components of the project are acceptable to the World Bank. To ensure adequate implementation of the activities by these two UN agencies, however, it is required that a technical auditor be recruited to oversee the activities and report to the World Bank team. 44 Annex 4: Implementation Support Plan A. Strategy and Approach for Implementation Support 1. The implementation of the project is entrusted to (i) WFP for subcomponents A1 and A2; (ii) UNICEF for Subcomponent A3; and (iii) FAO for Component B in compliance with contracts signed between the government and these UN agencies. B. Implementation Support Plan 2. To accelerate the project’s readiness for implementation, an implementation action plan has been agreed to by the UN agencies and the Recipient (Table A4:1). 3. Given the persistently volatile and risky security environment in which PURCAE is being implemented, the World Bank will conduct iterative beneficiary monitoring to strengthen the M&E system, replicating the successful system established in Northern Mali. Table A4.1: Draft Implementation Action Plan for the First Six Months after Project Approval Activities Actions Expected Responsible Actors Implementation Results time or date after approval Disbursement conditions Contract signed with FAO, Contracts Contracts signed UN Agencies, October 15, 2017 UNICEF and WFP including prepared GoC, implementing World Bank manuals, procedures Start Up Work plan, budget and Prepare a WPB WPB and PP UN Agencies October 15, 2017 Procurement plan (WPB & and Validated PP) PP IBM system Elaborate the Document UN Agencies October 15, 2017 System approved Official project launching Prepare the Launching UN Agencies October 15, 2017 launching workshop workshop organized First quarterly progress Prepare the Report disclosed UN Agencies January 31, 2018 report report Second quarterly progress Prepare the Report disclosed UN Agencies April 30, 2018 report report 45 Annex 5: Environment and Social Issues A. Introduction 1. An Environmental and Social Screening and Assessment Framework (ESSAF), consistent with the World Bank’s operational policies and procedures, investment operations subject to OP/BP 10.00, Investment Project Financing, under paragraph 12 on the possibility of undertaking projects in Situations of Urgent Need of Assistance or Capacity Constraints, was prepared for the parent project. Two safeguards instruments (ESMF and PPMP) were prepared during the implementation period of the parent project. These two safeguards instruments were updated and have been disclosed prior appraisal. B. General Principles 2. Recognizing the critical nature of the proposed emergency operation, while at the same time ensuring due diligence in managing potential environmental and social risks, the environmental and social safeguards due diligence is based on the following principles: • The proposed operation will support intensification and diversification of agricultural production (vegetables, cereals, cassava cuttings) for 8,740 households in the targeted areas. The exact location of these interventions will be known only during implementation. In addition, the operation will provide livestock vaccines and animal feed and assist in restocking. To ensure effective application of the World Bank’s safeguards policies, the ESMF provides guidance on the approach to be taken during project implementation for the selection, screening, and design of the main activities and the planning of mitigation measures. • No resettlement issues are expected in any of the proposed activities under the emergency project. The GoC and the village leaders where returnees are located have already identified the areas that will be allocated to refugees and returnees for agricultural activities, as was done during the implementation of the parent project, PURCAE. For livestock activities, grazing corridors will be defined after consultation with local communities. • Socioeconomic opportunities, such as vegetables production and livestock stabilization, will be promoted and extended as much as possible for refugees, returnees, and host communities. These activities require consultations with local communities or beneficiaries. Consultations will be conducted to collect the views of the male, female and youth populations. • Consultation and disclosure requirements have been simplified to meet the special needs of this operation. The ESMF and the PPMP have been disclosed in the concerned sector ministries, other public places in Chad, and on the World Bank website. 46 C. Compliance with World Bank Safeguard Policies 3. The project, is rated as “Category B” and is being prepared under OP 10.00 (Investment Project Planning), paragraph 12 as an emergency operation. The safeguards documents prepared during the parent project were updated and have been disclosed. Activities supported by the proposed operation could have certain site-specific adverse environmental and social impacts; therefore, the following three safeguard policies are triggered: OP/BP 4.01 (Environmental Assessment), OP 4.09 (Pest Management) and OP/BP 4.11 (Physical Cultural Resources). • OP/BP 4.01: Environmental Assessment. This policy is triggered because the project will support (i) the intensification and diversification of agricultural production; (ii) livestock vaccines and feed; and (iii) herd restocking. Small-scale reconstruction and rehabilitation of storage infrastructures will also be supported by the project resources. These activities may have environmental impacts that need to be managed appropriately. The project will also support activities that positively impact the environment. An ESMF prepared during PURCAE implementation was updated and will be disclosed. The ESMF contains sample terms of reference for environmental assessments that may be needed for project- supported activities, as well as screening guidelines to be used by implementing agencies (FAO, UNICEF and WFP). Based on the outcomes of the screening process, specific environmental and social management plans (ESMPs) will be prepared as necessary. • OP/BP 4.09: Pest Management. This policy is triggered because the project will continue to support scaling up and/or intensification of agricultural and livestock production activities. Project beneficiaries are likely to adopt integrated pest management practices that may involve the increased use of chemical pesticides, as they did during PURCAE, which could have negative environmental and health impacts (especially since returnees and refugees are using water for drinking throughout the project area). The Recipient addresses OP 4.09 requirements by updating the existing PPMP developed for PURCAE (P126576). The revised PPMP includes many actions that will reduce the exposure of farming communities to pesticides used in agricultural and livestock production systems. • OP/BP 4.11: Physical Cultural Resources. The proposed operation may involve excavations and movement of earth for community facilities. The ESMF includes clear procedures that will be required for identification, protection of cultural property from theft, and treatment of discovered artifacts, and also includes standard bidding documents. The ESMF provides procedures for handling with “chance finds” during implementation project activities. 4. The other safeguard policies have not been triggered (see Table A.51), and in particular PO/BP 4.12 for the following reason: • OP/BP4.12: Involuntary Resettlement. Since the project’s activities will not lead to land acquisition or restrict access to livelihood sources, OP. 4.12, they will not be triggered. The GoC has already allocated land in the refugee and returnee camp areas. This land is free of title and claims and has no squatters or encroachers on or near it. To deal with potential conflicts that may occur during the project implementation phase, government 47 authorities and the two implementing agencies will use the Grievance Redress Mechanism that is used in the PURCAE. Table A5.1 Safeguards Policies Triggered Safeguards policies triggered Environmental Assessment (OP/BP 4.01) [x]Yes [ ] No Natural Habitats (OP/BP 4.04) [ ]Yes [x] No Forests (OP/BP 4.36) [ ]Yes [x] No Pest Management (OP 4.09) [x]Yes [ ] No Physical Cultural Resources (OP/BP 4.11) [ x ]Yes [ ] No Indigenous Peoples (OP/BP 4.10) [ ]Yes [x] No Involuntary Resettlement (OP/BP 4.12) [ ]Yes [x] No Safety of Dams (OP/BP 4.37) [ ]Yes [x] No Projects on International Waterways (OP/BP 7.50) [ ]Yes [x] No Projects in Disputed Areas (OP/BP 7.60) [ ]Yes [x] No D. Safeguards Instruments Disclosure 5. The ESMF and the PPMP and/or other documents related to safeguards have been cleared by the World Bank and disclosed within the country, in the sector ministries, and in the project areas on June 30, 2017 and at the World Bank website on July 12, 2017. E. Safeguards Screening and Mitigation 6. The updated ESMF and PPMP for this project is aimed at ensuring due diligence to avoid causing harm or exacerbating social tensions and to ensure consistent treatment of social and environmental issues by GoC and service providers. The updated ESMF and PPMP also aims to assist the UN agencies and all concerned public agencies in screening project-supported activities for their likely social and environmental impacts, identifying documentation and preparation requirements, and piloting the investments. 7. The ESMF provides a framework for establishing guidelines for land donation, codes of practice for the prevention and mitigation of potential environmental and social impacts, and safeguards procedures for inclusion in the FAO, UNICEF and WFP conventions. 8. The safeguards screening and mitigation process will be detailed in the PIM and include: • A list of negative characteristics rendering a proposed activity ineligible for support; • Steps for screening potential environmental and social impacts, mitigation measures; • and implementation procedures; • A proposed checklist of likely environment and social impacts to be filled out for each subproject or group of activities; • Relevant elements of the codes of practice for the prevention and mitigation of potential environmental impacts; • Sample environmental safeguards procedures for inclusion in the UN agencies; and • Guidelines for the preparation of ESMPs. 48 F. Responsibilities for Safeguards Screening and Mitigation 9. Several ministries and other public agencies will be involved in implementing the project, including the MPIAE; the Ministry of Livestock and Animal Resources and the MEDP. The UN agencies will be responsible for applying the safeguards screening and mitigation requirements to their own tasks, under the coordination of the MPIAE. A safeguards specialists will be identified in the MPIAE to facilitate overseeing the implementation of the relevant safeguards instruments. The UN agencies will ensure that environmental and social safeguards are properly addressed during project implementation. Since the FAO will ensure the implementation of Component B, it was agreed that an environmental specialist will be part of FAO core team to ensure the environmental compliance of the activities implemented by FAO. G. Capacity Building and Monitoring of Safeguard Framework Implementation 10. In general, the Borrower is experienced with the World Bank’s safeguards policies through other World Bank-funded projects in the agriculture and rural development sector (such as the PURCAE). The project will thus rely on expertise developed in Chad through past and current projects. If needed, consultants may be recruited by the UN Agencies to ensure that safeguards are addressed properly during project implementation. As part of the capacity building to be provided for implementation of the proposed operation, the safeguards specialists and relevant staff of the concerned ministries, service providers, and decentralized agricultural staff will also receive training in ESMF and PPMP’s application. During supervision of these activities, the World Bank will assess the implementation of the relevant safeguards instruments (ESMF, ESMPs and PPMP). The proposed project will therefore be able to draw on previous experience, with further support to be provided by the UN agencies since they are responsible for implementing the two project components. The capacity-building plan will include sharing information with the public, as the project is considered a poverty reduction program and thus will be conducted more inclusively through various local media sources. During the project’s implementation, attention will be given to conflict resolution mechanisms for the populations affected by the project. H. Consultation and Disclosure 11. IDA funding will support many of agricultural and livestock production activities classified as “Environment Category B,” to which World Bank safeguards policies relating to consultation and disclosure will apply. The implementing agencies will consult project-affected groups and local NGOs regarding the project’s likely environmental and social impacts, and it will take their views into account. 12. The implementing agencies will initiate these consultations as early as possible. To ensure that the consultations are meaningful, they will provide relevant material in a timely manner. 13. Prior to consultation, in a form and in language(s) that are understandable and accessible to the group(s) being consulted. As required for all “Environment Category B” projects, when the studies are completed, the implementing agencies will provide these groups with a summary of the main conclusions of the studies report. 14. The ESMF, the PPMP and ESMPs when applied, will be shared with all relevant stakeholders, including public agencies involved in the project’s implementation, development partners, NGOs, and of course the concerned communities. It will be disclosed within the country by the MPIAE or MEDP, in 49 French, Arabic, and other local languages. It will also be made available at the World Bank website. Specific safeguards documents, including mitigation plans that are prepared subsequently, will also be disclosed. Finally, the UN agencies will make the draft reports publicly available to project affected groups, local NGOs, involved communities, and Recipient agencies at the local and national levels. J. Implementation Support 15. The World Bank safeguards team will provide regular guidance during the support missions. The team will assess progress on environmental and social safeguards, achievement of overall objectives, as well as the role of the different partners, with a view to eventually reorient the project, if needed. K. Guidelines for Preparation of Environmental and Social Management Plans (ESMPs) 16. Once the potential impacts of relevant activities have been identified, the next step of the environmental assessment process involves the identification and development of measures aimed at eliminating, offsetting, and/or reducing these impacts during implementation and operation of the project, via an ESMP, to levels that are environmentally acceptable. ESMPs provide an essential link between the impacts predicted and mitigation measures specified within the environmental assessment and implementation and operation activities. L. Institutional Arrangements 17. The MPIAE will be the main institution responsible for safeguards compliance. A safeguard specialist will be identified in to facilitate overseeing the implementation of the relevant safeguards instruments. In addition, the UN agencies will ensure that environmental and social safeguards are properly addressed during project implementation. More specifically, FAO will include an environmental specialist as part of its core team to ensure environmental due diligence for Component B. Periodic environmental and social safeguards implementation reports will be produced by FAO and the MPIAE. 50 Annex 6: Greenhouse Gas (GHG) Accounting Republic of Chad 1. World Bank Mandate: In its 2012 Environment Strategy, the World Bank adopted a corporate mandate to conduct greenhouse gas (GHG) emissions accounting for investment lending. The quantification of GHG emission is an important step in managing and ultimately reducing emissions, and is becoming common practice for many international financial institutions. 2. The World Bank has adopted the Ex-Ante Carbon-Balance Tool (EX-ACT), developed by FAO in 2010, 7 to assess a project’s net carbon-balance. This is the net balance of tons of carbon dioxide (CO2) equivalent (tCO2e) GHGs that were emitted or carbon sequestered because of project implementation compared to a “without project” scenario. EX-ACT thus estimates the carbon stock changes as well as GHG emissions per unit of land, expressed in tCO2e per hectare and year. 3. Project Focus and Objectives. The project is designed as a rapid respond to a crisis and as such it supports individuals affected now and in the very near term. It is not designed as a long-term response, and is not expected to yield a longer term sustainable development impact. However, some of the project activities will have a positive climate change effects, while others will result in more GHG emissions in the short term. The GHG analysis carried out includes activities with potentially highest impact (provision of improved seeds, fertilizers, livestock production support activities) while leaving out some of the minor carbon sinks and sources. 4. Data Inputs in EX-ACT: Chad has tropical dry climate and high activity clay soil. The project duration is 18 months; the capitalization period is assumed to be 20 months. Dynamics of evolution are assumed to be linear. Default “tier 1” 8 coefficients are used. 5. The project proposes several activities that can be captured with the GHG accounting tool EX-ACT. Subcomponent A3 (access to sustainable cooking systems and drinking water) will finance the distribution and/or construction of improved mobile sheet metal fireplaces and/or build their own improved bench- top home for all refugee families to reduce wood consumption by 50 percent. The calculations assume that an average family consumes 3t of wood fuel per year and by decreasing this 50 percent will result in emission reduction. In the absence of specific information, the analysis here considers only the reductions in the energy component, nitrous oxide (N2O) due to incomplete combustion and does not consider the resulting decreased deforestation, which has positive mitigation co-benefits. Component B (agricultural production and livestock stabilization) will provide farmers with technology packages (improved seeds, fertilizers) with the total number of beneficiaries of 8,740 households and the total area cultivated 21,120 hectares. The project will also support for livestock stabilization by providing vaccines to 1,100, 000 animals. Table A6.1 provides data inputs for the current project, with and without project scenario. 7 http://www.fao.org/tc/exact/ex-act-home/en/ 8Defined in the 2006 IPCC guidelines, tier 1 is the basic method that utilizes IPCC-recommended country-level default values for emission factors and carbon values, the so called Tier 1 level of precision. 51 Table A6.1. Data Inputs to EX-ACT, with and without Project Scenario Activities Current scenario Without With project scenario project scenario Provision of sustainable Families using traditional stoves 50% reduction in fuel wood consumption cooking systems to 10,000 consume around 3t of fuel wood families in refugee and host a year. communities Provision of improved 14092.5 ha under traditional 14092.5 ha under improved agronomic seeds cultivation of which: practices: Vegetables and fruit - 62.5 ha Vegetables and fruit - 62.5 ha Millet - 4,000 ha Millet - 4,000 ha Sorghum -4,000 ha Sorghum - 4,000 ha Groundnut - 4,000 ha Groundnut -4,000 ha Rice - 2,000 ha Rice - 2,000 ha Cassava cuttings - 30 ha Cassava cuttings - 130 ha 66t of N per year from NPK Provision of fertilizer (N,P,K, 66t of P per year from NPK 50kg per family) to 8,240 66t of K per year from NPK affected families Livestock stabilization 1,100,000 heads of cattle with no 1,100,000 heads of cattle receive (vaccines) access to vaccines – mortality vaccines to restore and maintain the rate calculated to be 5% production capacity 6. Initial results suggest that the project could produce low net carbon emissions of 1,219,414 tCO2 equivalent over 20 years, thus 56,717 tCO2e annually, due to the increased number of cattle in the short term. However, the results must be interpreted with substantial caution since the analysis does not cover improved livestock management practices (improved feed and veterinary services) that could lower the carbon emission intensity of the sector in the longer term. Nor does the analysis quantify mitigation benefits from the reduced deforestation related to the distribution of improved fireplaces The analysis can be updated at the later stage of project preparation and implementation as more information becomes available. 52 Annex 7: Map 53