The World Bank Casamance Economic Development Project (P175325) Project Information Document (PID) Concept Stage | Date Prepared/Updated: 18-Dec-2020 | Report No: PIDC30686 Nov 09, 2020 Page 1 of 18 The World Bank Casamance Economic Development Project (P175325) BASIC INFORMATION A. Basic Project Data OPS TABLE Country Project ID Parent Project ID (if any) Project Name Senegal P175325 Casamance Economic Development Project (P175325) Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) AFRICA WEST May 17, 2021 Jul 01, 2021 Social Sustainabilty & Inclusion Financing Instrument Borrower(s) Implementing Agency Investment Project Financing Ministry of Economy and Project Implementing Unit Finance Proposed Development Objective(s) To empower community participation in local development and ensure all members of target communities, including vulnerable and excluded groups, benefit from socio-economic development in Casamance. PROJECT FINANCING DATA (US$, Millions) SUMMARY-NewFin1 Total Project Cost 45.00 Total Financing 45.00 of which IBRD/IDA 45.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Development Association (IDA) 45.00 IDA Credit 45.00 Environmental and Social Risk Classification Concept Review Decision Moderate Track II-The review did authorize the preparation to continue Nov 09, 2020 Page 2 of 18 The World Bank Casamance Economic Development Project (P175325) Other Decision (as needed) B. Introduction and Context Country Context Progress towards the World Bank’s twin goals in Senegal has been mixed in recent years. Since 2014 and up to 2018, Senegal enjoyed one of the highest rates of economic growth in Africa—over 6 percent anually, which would classify Senegal as a lower middle-income country. Thanks to high growth, monetary poverty decreased somewhat1, the majority of whom were in rural areas. However, 2019 saw the first disruption in this upward trend; GDP growth slowed to 5.3% in 2019, down from 6.3% in 2017. Since early 2020, the COVID-19 pandemic has posed a threat to Senegal's economic outlook. Growth has slowed significantly to an estimated 1.3% percent in 2020, with services (such as tourism and transport) and exports particularly hard hit. Even before the pandemic, as in other parts of Africa, positive developments have been uneven in Senegal too. Despite impressive growth over the past decade, this period has witnessed limited progress in reducing monetary inequality in Senegal. Even in the high growth period of 2001-2005, inequality of consumption, as measured by the Gini coefficient, was resistant to change, staying at around 0.40 (close to the SSA average) while inequality of assets actually became more pronounced between 2011 and 2016, especially in rural areas, where it increased from 0.38 to 0.41. This sheds light on the important and persistent inequalities (gender, regional, and rural) in accessing basic services and productive inputs that undermine the capacity to accumulate human capital and pursue economic opportunities. M 2Current adult literacy rate stands at 43 percent, well below both SSA and LMIC averages (64 and 76 percent, respectively), and only 7.2 years of schooling can be expected in Senegal versus 8.1 in SSA and 10.2 in LMIC, as reported by the Human Capital Index. Access and quality of learning are worse for the poorest children and in rural areas, as evidenced by enrolment rates (NER of 54 percent in rural areas against 83 percent in Dakar). The challenge of inclusion and resiliency in the face of inter-linking challenges is highlighted in Casamance, a geographic region located south of Gambia, in the extreme southwest of Senegal. Casamance covers a total area of approximately 28,400 square kilometers, one-seventh of the total area of Senegal, and is home to a population of approximately 1.5 million inhabitants.3 It borders the Gambia to the north, Guinea-Bissau and Guinea to the south and the Tambacounda region bounded by the Koulountou River to the east. It is bordered by the Atlantic Ocean to the west. This unique geography makes Casamance effectively a peninsula of Senegalese sovereignty and creates geographic isolation from the rest of the country. 1 Source: WB estimates, the current official data is from 2011 with a figure of 38 percent of the population living on under US$1.90 a day (2011 PPP). 2 The adult literacy rate (% of people aged 15 years old and above) for Senegal is taken for the latest available year – 2013, while for SSA and LMIC it is based on 2016 data, as reported by WDI. The expected years of schooling are based on the data from the Human Capital Index, World Bank (2018). Available at: https://www.worldbank.org/en/data/interactive/2018/10/18/human-capital-index-and- components-2018. 3 Capitalization Report of PPDC, May 2020. Nov 09, 2020 Page 3 of 18 The World Bank Casamance Economic Development Project (P175325) Geographic distance between Casamance and the rest of Senegal reflects differences —socially, culturally, economically, and ecologically—that are both historic and modern. Ecologically, its climate and ecosystem is dominated by rivers, forests, and mangroves, compared with the Sahelian terrain in the northern part of Senegal. 4 In addition, there are also religious and ethnic differences between Casamance, which is ethnically Jola and has a greater non-Muslim population, and the rest of the country, which is majority ethnically Wolof and predominantly Muslim.5 Most of Senegal’s Christian and Animist populations are concentrated in Casamance, accounting for 77.2% of Christians and 61.1% of those who engaged in traditional religious practices.6 Casamance’s economic development remains limited. Agriculture is the main source of livelihood, although it is also the sector which employs the largest share of the poor nationally. In Casamance, agriculture is concentrated in particular on rain-fed food crops (including cereals), and cash Figure 1. Map of Casamance crops, mostly groundnuts. Other sectors of employment are informal services and tourism although the latter has been degraded by decades of low intensity conflict in the region.7 Lower average development outcomes in Casamance, compared to national averages, are both a cause and a consequence of decades of conflict and ongoing fragility. Although impressive progress has been realized over the past fifteen years to bring peace and stability to Casamance, as well as investments to improve the connection between Casamance and the rest of Senegal, the effects of its history of conflict continue to be widespread. Parts of the three administrative regions that constitute Casamance (Ziguinchor, Kolda, and Sédhiou) are among the poorest in the country, with poverty levels considerably higher than the national average. According to Oxford University’s Multi-Dimensional Poverty Index,8 the MPI of the Kolda (0.50), and Sédhiou (0.44) regions are significantly higher than the national MPI at 0.288. Impacts are also felt at the community level, where social bonds are ruptured by forced displacement and informal institutions that regulate many parts of village life are disrupted, leaving them less able to prepare for and respond to other risks. And finally, perceptions of unfairness and inequality, which helped motivate the conflict in Casamance, were also exacerbated by the conflict, thereby undermining trust in government institutions amongst the local population in Casamance. Against the background of these differences and greater degree of historical autonomy, grievances related to economic and social exclusion by the national government helped motivate an independence movement in Casamance following 4 Kim Mahling Clark, “Ripe or Rotting: Civil Society in the Casamance Conflict,� African Conflict and Peacebuilding Review 1, no. 2 (Fall 2011): 154. 5 Anne Theobald, “Successful or Failed Rebellion? The Casamance Conflict from a Framing Perspective,� Civil Wars 17, no. 2 (2015): 184, https://doi.org/10.1080/13698249.2015.1070452. 6 Republic of Senegal, “Recensement Général de la Population et de l’Habitat de 1988,� Dakar: Ministry of the Economy, Finance and Planning, 1990. 7 SCD 2020-2024 8 The MPI has three dimensions and 10 equally weighted indicators across health, education, and living standards. In the global MPI, a person is identified as multidimensionally poor or MPI poor if they are deprived in at least one third of the weighted MPI indicators. In other words, a person is MPI poor if the person’s weighted deprivation score is equal to or higher than the poverty cutoff of 33.33%. For more information please refer to the Senegal brief: https://ophi.org.uk/wp-content/uploads/CB_SEN_2019_2.pdf Nov 09, 2020 Page 4 of 18 The World Bank Casamance Economic Development Project (P175325) independence, which erupted into what was once Africa’s longest-running violent conflict in 1982.9 The reasons for the onset of the conflict are manifold and include the historical autonomy between Casamance and Senegal during the colonial period and perceptions of inter-ethnic and religious discrimination thereafter.10 In particular, these dynamics appear to have combined to create the impression amongst many Casamançais that the natural resources of Casamance were being exploited not for the benefit of the local population but for communities in Dakar and elsewhere. Following over two decades of conflict, with roughly a thousand resulting deaths, a peace process was started with an initial agreement reached in 2004. The agreement outlined the demobilization and reintegration of combatants, return of refugees and IDPs, and economic reconstruction for Casamance and called for political dialogue between the MFDC and the Senegalese government to discuss the roots of the conflict and develop solutions to long-lasting resolution. However, the lack of practical details of implementation resulted in a breakdown and another surge in violence after 2009. In April 2014, another ceasefire was announced after peace talks between the government and the MFDC faction.11 Since the peace agreement in 2014 significant steps have been taken by the national government to improve the economic inclusion of Casamance. Development initiatives outlined by the current president include a railway to improve economic access between the north and south, tax incentives for tourism in Casamance, and have already resulted in completed infrastructure projects such as the Senegambia Bridge, opened in 2019.12 Sectoral and Institutional Context Despite such efforts over the past 15 years, conflict and fragility in Casamance persists. The number of conflict events is high in Casamance relative to its share of the population for all of Senegal. Twenty-eight percent of these events in Senegal have occurred in Casamance, which is home to only 12.5% of Senegalese. The most common forms of conflict events in Casamance are protests and battles. These events are also more violent and deadly in Casamance compared to the rest of the country. Of the violent events that have occurred in Senegal between 2010 and 2020, the majority took place in Casamance, as Figure 2 demonstrates. Seventy percent of conflict events involved violence against civilians and 78 percent of all battles have taken place in Casamance. All explosions/remotely detonated violence that occurred in Senegal took place in Casamance. Eighty-three percent of all deaths resulting from conflict took place in Casamance. Deficits of trust in government could play a significant and negative role in undermining an effective response to, and recovery from, the COVID-19 pandemic. As of November 5th, Senegal recorded one of the highest cumulative number of cases and deaths in AFW. Senegal has put in place containment measures and launched an economic stimulus plan (PRES) aimed at protecting lives and livelihoods. Nonetheless, the pandemic risks offsetting welfare gains achieved through improved access to key services and connectivity. Given the already limited connectivity of Casamance and the socio- economic vulnerability of the population it is likely that impacts will be felt more acutely in that region. Moreover, policies intended to address the resulting economic crisis that focus on areas of higher population density may reinforce historical narratives of exclusion in Casamance, contributing to a resurgence of real and perceived grievances. Resource constraints, 9 Ibid. 10 Clark, 154 11 “Senegal’s Casamance MFDC rebels declare a ceasefire,� BBC, April 30, 2014, https://www.bbc.com/news/world-africa-27221999. 12 “Senegal pledges $500 mln railway to southern Casamance region,� Reuters, February 20, 2015, https://af.reuters.com/article/topNews/idAFKBN0LO0D020150220 Nov 09, 2020 Page 5 of 18 The World Bank Casamance Economic Development Project (P175325) amplified by the pandemic, may worsen government services, particularly in remote and isolated regions like Sédhiou and Kolda, where per-capita costs of delivering services are higher. While ongoing fragility and conflict in Casamance is the result of multiple, interacting causes, three key factors of fragility emerge from recent analysis13 1) Limited market connectivity and spatial inequality: Figure 2. Market Accessibility although large infrastructure projects provide much- Network needed improvement of Casamance’s links overall with the rest of the country, spatial analysis demonstrates that local level infrastructure still lags. As a result, significant parts of Casamance are still substantially disconnected from markets. In particular, Figure 2 shows that districts in the southeast and south corridors have limited access to domestic markets. This suggests that improvements in large-scale infrastructure without commensurate improvements in tertiary, local-level infrastructure mean that the economic fruits of growing connectivity and investment may not accrue to small-scale farmers and traders. 2) Perceptions of exclusion and inequality create grievances and lack of trust: This lack of connectivity translates in turn to low levels of economic activity relative to the rest of the country. Figure 3 shows that there are very low levels of nighttime lights in Casamance and elsewhere indicating low levels of non-agricultural economic output. Within Casamance, especially on the west side, very little land is covered by crops, indicating low agricultural production. Lower relative economic development vis-à-vis the rest of the country perpetuates perceptions of exclusion and inequality that help foment conflict in Casamance. Grievances are specifically related to the management of natural resources —namely, the ongoing deforestation in Casamance (Figure 4). One such example is the recent reactivation of a dormant rebel movement in response to planned mineral sands project in the Figure 3. Economic Activity Index Niafarang mine. 3) Exposure to multi-dimensional risks, including climate change: the lack of economic activity diminishes the adaptive capacity of communities in Casamance, which are also exposed to higher risks of shocks, like climate change, creating an overall high level of vulnerability. Figure 4, for example, shows that while the Casamance region is subject to minimal risk of floods and moderate exposure to precipitation and temperature variation, parts of the region have experience significant desertification. In supporting the government to address these multiple, 13 Casamance Region Multi-Sector Analysis, 2020. Nov 09, 2020 Page 6 of 18 The World Bank Casamance Economic Development Project (P175325) inter-linking challenges, the proposed project builds upon the World Bank’s long engagement in Casamance through the Casamance Development Pole Project (PPDC). As the World Bank’s only project exclusively devoted to Casamance, from 2013-2020, the project sought to (i) increase agricultural productivity in the targeted agricultural sectors in favor of young people and women and (ii) improve the accessibility of the targeted rural areas in Casamance. The PPDC project originated following the presidential election of 2012 and featured as an important component of the national government’s priorities. An Implementation Completion Report (ICR) of PPDC is currently underway and is expected in March 2020; however, initial evidence collected under a FY20 ASA identified the following findings, from which the proposed operation follows: • Connectivity: PPDC’s community-led approach to providing Figure 4. Desertification, 2001-2018 local-level infrastructure has helped leverage connectivity gains through primary and secondary infrastructure for more pro-poor, conflict sensitive development in Casamance. In the context outline above—showing the need for support to local-level infrastructure to help small producers realize gains in larger scale infrastructure—this model could help improve pro-poor livelihood opportunities, while assuaging the kinds of center-periphery grievances that have been a core driver of conflict in Casamance historically. • Social inclusion: A social inclusion review of the PPDC project, along with the existing World Bank portfolio in Casamance, demonstrates that more targeted support is needed to improve the inclusion of marginalized groups like women and youth economic empowerment in Casamance. The review demonstrates that projects in Casamance have had positive impact on women’s and youth inclusion when they actively target these groups through project components dedicated to this goal. However, women’s and youth participation in development processes are often constrained by a broader set of social structures and cultural norms. More comprehensive community engagement and mobilization strategies are needed that integrate a ‘whole-of-community’ approach—i.e. ensure that traditional leaders and institutions are positively engaged in the design and implementation of interventions targeting these groups. • Social Cohesion: strengthening local institutions and communities: with a focus on strengthening the capacity of local institutions within Casamance and connections between national, regional, and local institutions PPDC was able to achieve improvements in the communication and transparency between institutions at the local level in Casamance, which has played a critical part in rebuilding trust in government within communities in Casamance, according to post-hoc reviews of the PPDC project.14 As with PPDC, the current proposed project supports the three strategic pillars outlined in the Plan Sénégal Émergent (Plan Senegal Emergent- PSE- 2010-2035): a) a structural transformation of the economy through the consolidation of current engines of growth and the development of new sectors to create wealth, jobs, and social inclusion, with a strong capacity to export and attract investment. This pillar is based on a more balanced approach to development, with the promotion of regions and economic poles in order to stimulate the potential for development across the entire territory ; b) a significant improvement in the well-being of the population, a more sustained struggle against social inequality, while preserving the resource base and supporting the emergence of viable regions ; and c) the reinforcement of security, stability, governance, the protection of rights and liberties, and the consolidation of the rule of law in order to create better conditions for social 14 Achievement and capitalization studies (draft), PPDC. May 2020. Nov 09, 2020 Page 7 of 18 The World Bank Casamance Economic Development Project (P175325) peace and the fulfilment of potential in the isolated region of Casamance. Through supporting the organizational capacity of collectivités rurales (CRs) in Casamance to serve as platforms of participatory planning, the project also supports the third Decentralization Act (Acte III de la Décentralisation, Act III), which accompanied the PSE and which underscores the Government’s commitment to empowering local governments (LGs) and cities to drive economic growth and improved access to services. Act III was launched in December 2013 with the passage of the General Code for Local Governments (la loi portant Code général des Collectivités locales) to reinforce the capacity of local governments to contribute to the economic and social development of the country and to become viable, competitive and sustainable by 2022. Act III extensively redefined local governance institutions across the national territory, increasing municipalities from 172 to 557 and transferring significant administrative responsibilities and financing to local government administrations. Act III of decentralization also specifically highlighted the unique challenges of decentralized financing and local planning in Casamance, with dedicated support to the "project of territorial development of the State in Casamance as a pilot pole which will promote a new modality of intervention in this territory.� However, challenges continue to hinder implementation, including: (i) improving local government financing; (ii) building the administrative capacity of LGs; and (iii) ensuring that the national level institutional arrangements support LGs to progressively develop and manage local development processes autonomously. In seeking to address these challenges as they exist in Casamance, the project will coordinate with ongoing capacity building and policy dialogue efforts supported under the World Bank’s PACASEN project. In line with the pillars of the PSE, the project will also improve access to socio-economic services in rural areas, with a focus on including women and youth. Significant inequalities between genders in Senegal reflect barriers to equal participation in markets and citizen engagement. The gender inequality index, which is 0.57% in 2011, reflects the persistence of large social disparities between men and women in Senegal. In 2012, the OECD Social Institutions and Gender Index (SIGI) ranked Senegal 41st out of 86 countries, with a value of 0.23 (0 representing equality). These challenges include the social cultural norms, access to education, finance, and productive resources like land. Improvement of women's living conditions in order to eradicate the socio-economic disparity in gender relations, and thus support the self-empowerment of women in Casamance. Gender mainstreaming and community inclusion will be considered throughout the project cycle through its different components. Particular attention will be paid in project design to avoid any discrimination and exclusion of any group, including people living with a disability or any category likely to be excluded. Through the stakeholder engagement plan, the project will support the identification of community organizations of women and men for their effective involvement and the identification of their specific needs that will contribute to the improvement of their living conditions and their families. Recognizing that a primary barrier to gender equality and inclusion in the region is access to information and the ability to participate in community decisions; the project hinges on consulting women and youth on their development needs and understanding the barriers they face to meeting these needs. This includes understanding and addressing social norms which prevent or discourage women from engaging in local governance, community dialogues and decision making. The project proposes to address these barriers by nurturing such engagement through outreach, sensitization and facilitated dialogue. In parallel, women often lack the skills, knowledge and resources to meaningfully participate and benefit from such development initiatives. Engagement and participation therefore needs to be complimented by socio-economic empowerment which this project seeks to build through local capacity building, inclusive targeting and linking women and youth to tailored and relevant socio-economic resources. Finally, considering contextual risks of Gender-Based Violence (GBV), the project will ensure that a safe and culturally informed prevention, mitigation and response plan is put in place to address Sexual Exploitation and Abuse/ Sexual Harassment risks (SEA/SH). This will include mapping and engaging relevant Nov 09, 2020 Page 8 of 18 The World Bank Casamance Economic Development Project (P175325) community-based actors (such as women’s organizations or groups) as well as GBV service providers to ensure that the project has the capacity not only to prevent and respond to SEA/SH risks but also to refer and support survivors of GBV incidents should they chose to report their incidents through the project. Furthermore, the project aligns with the agriculture specific priorities of the PSE, particularly as it pertains to addressing vulnerability to climactic shocks and weak agricultural value-chains in view of strengthening rural economies as outlined under components 2 and 3. The agricultural sector offers huge opportunities for growth mainly in export horticulture, rice and other crops and in the development of livestock breeding and the development of the Poultry farming mainly for the domestic market. A favorable climate for production of fresh fruit and vegetables throughout the year and a proximity relative with the European marketplace Senegal in a very good position. There is a lot of room for maneuver in agriculture, with regard to the still low yields of cereal crops. It is therefore essential to modernize the sector, which is essentially made up of small farms and which is highly dependent on rainfall and the use of traditional production techniques. Difficulties of access to land and credit, which limit the potential participation of private companies, will have to also be resolved. The project will seek synergies with existing and planned initiatives by other World Bank teams and development partners to leverage its social inclusion and cohesion investments for transformational impact in peace, prosperity, and resilience in Casamance. This includes, inter alia, leveraging investments in digital connectivity (P172524) in the regions of Kolda and Sedhiou where road spot improvements could be accompanied by last-mile digital connectivity investment. Similarly, the menu of capacity building activities targeting community youth & women could be expanded to include digital skills targeted by that project. In addition, the project will leverage linkages with three country-wide Programs-for-Results in order to: support MSMEs and informal women-owned agricultural businesses (Senegal Jobs, economic transformation & recovery (JET) (P174757) and Agriculture and Livestock Competitiveness (P164967)) and capitalize on improvements to governance and local development financing in Ziguinchor, Sedhiou and Kolda (Municipal and Agglomerations Support P4R (P157097)). Relationship to CPF The CPF, approved by the board in March 2020, prioritizes the need to improve the social and economic inclusion of at- risk youth and women (Focus Areas 1.3 and 1.4), as well as improving both physical and digital regional connectivity (Focus Area 2.1). To do so, it will be important to address the unique challenges of accessibility and logistics constraints in the region and to build on the lessons from various interventions that have successfully addressed some of those challenges (e.g. the Casamance Development Pole Project, the WAAPP, and the PROGEDE). As Focus Area 3 of the CPF highlights, bridging the equity gap in basic services will be key to ensure that groups in the most vulnerable geographic areas can link up to human development and job opportunities to contribute fully to the national economy. These efforts directly contribute to the GoS’s ambition towards a more equitable spatial development and will also help accompany (and mitigate the negative consequences of) rural-urban migrations. C. Proposed Development Objective(s) To empower community participation in local development and ensure all members of target communities, including vulnerable and excluded groups, benefit from socio-economic development in Casamance. Key Results (From PCN) The following PDO indicators will be considered and refined during project preparation: - Beneficiaries that report local development plans reflect their needs (percentage, disaggregated by women and youth (boys/girls)) Nov 09, 2020 Page 9 of 18 The World Bank Casamance Economic Development Project (P175325) - Share of rural population in the project area with access to an all-season road (percent, disaggregated by age group and gender) - Youth or women-led cohesion grants successfully implemented with the support of CRs (number, disaggregated by women and youth (boys/girls)) Intermediate outcomes: - Improvement of Rural Access Index (RAI; number of index points improvement15) in the targeted areas - Average increase in rain-fed rice yield (tons per hectare) - Average revenue per hectare of horticulture (US$) D. Concept Description The development objectives of this project will be achieved through three main operational components derived from the Theory of Change outlined above. Following on the assessment of the distinct challenges in Casamance identified above, each component addresses the factors of fragility in Casamance in an integrated way. Component 1 supports social cohesion and resilience through strengthening the capacity of collectivités rurales and empowering women and youth to take on a leading role in their own development, including through addressing exclusionary social norms. As such it provides the basis for the participation of communities in Components 2 and 3. Component 2 will make strategic investments in local infrastructure to help address the connectivity challenges outlined above. The approach combines the principles of Community-Driven Development (CDD) with an evidence-based territorial lens. Doing so will ensure that, on the one hand, the most isolated members of the community play a central role in co-creating local development plans that reflect their needs and, on the other, that evidence informs the most efficient and effective way to meet those needs. Component 3 will provide targeted support to vulnerable members of the community so that they can benefit economically from the increased connectivity by improving livelihood opportunities. By applying a gender and age-responsive lens, the project aims not only to generate opportunities for income generation or employment but to build the capacity of disenfranchised groups such a women and youth to access those opportunities and reduce barriers to these opportunities. Climate change resilience is included here as well as a cross-cutting priority across the project components. The project builds on lessons learned from the PPDC and other WB operations in Casamance. Component 1. Empowering communities and local institutions to build social cohesion This component supports social cohesion and resilience through strengthening the capacity of collectivités rurales and empowering women and youth to take on a leading role in their own development, including through addressing exclusionary social norms. It directly addresses the perceptions of exclusion in Casamance that have been identified as a factor of fragility by supporting vertical cohesion—between local communities in Casamance and government. This will be achieved through supporting community-led strategies and participatory assessments and integrating them into local developments plans. At the same time, recognizing that certain parts of the community are constrained by exclusionary social norms, the component will also aim to strengthen participatory mechanisms of local institutions with a view to ensuring that all segments of the population have equal voice. In doing so this component aims to directly address the social norms that help fuel exclusion-related grievances. The project seeks in particular to amplify the voices of women and youth 15 https://datacatalog.worldbank.org/dataset/rural-access-index-rai Nov 09, 2020 Page 10 of 18 The World Bank Casamance Economic Development Project (P175325) and empower them to participate in community decisions. By consulting these groups on their development needs and the barriers they face to meeting these needs, on the one hand, and by ensuring that their needs are reflected in local development plans, on the other, this component seeks to nurture linkages between these vulnerable groups within the community and their local government. In terms of institutional strengthening for vertical social cohesion, the component will work primarily through supporting the organizational capacity of collectivités rurales (CRs) in Casamance to serve as platforms of participatory planning, as mandated under Act 3 of Decentralization Law (2013), to support the prioritization process and implementation of activities of the Project. CRs will receive a tailored set of complementary capacity building activities in areas such as (i) socio- organizational capacity building including techniques of facilitation and leadership; (ii) inclusive planning and participatory budgeting to ensure that women and youth’s needs are prioritized, (iii) project implementation, including aspects of procurement and financial management, (iv) operating procedures on the integration of climate change planning into community development priorities, (v) monitoring and evaluation including techniques of data collection and knowledge management. The capacity building program will be developed in coordination with the PACASEN program. Target communities will be supported to elaborate/update - in partnership with CRs- local development plans (LDPs) that will inform the selection of investments under Components 2 and 3. Selection criteria for investments will be refined in consultation with the local CRs but will meet to the following broad conditions: a) improve local connectivity and/or economic inclusion in line with the objectives of components 2 &3 b) align with evidence-based needs analysis and/or complement past investments c) be economically and technically viable / within the capacity of CRs to implement and d) promote environmental and social sustainability and inclusion particularly for marginalized women and youth. Facilitated by CRs, LDP will therefore function as the key interconnection hinge through which community priorities are integrated with technical assessments by regional agencies. The component will also provide support to communities directly to strengthen the process of community participation in LDPs and thereby support (horizontal) social cohesion within them. Under this component, the CRs will work with a Facilitating Partner (FP), a local or international non-governmental organization, to mobilize community participation in local level cohesion activities to build trust, community understanding and discuss common development opportunities. In recognition of the distinct barriers to equal participation women and youth face, it will provide targeted support to there groups to create a more equal playing field of community participation and engagement with CRs. To these ends, this component will support two inter-linked sub-components: (i) local fragility analyses to inform resilience strategies: As presented above, ongoing fragility and conflict drivers continue to manifest in Casamance, ranging from natural resource management and deforestation, increased youth participation in violent activities, and social norms that enforce inequitable gender outcomes. These have all created differentiated types of vulnerabilities in Casamance to which LDPs should be oriented to ensure that the project is able to address the underlying factors of fragility. Under this component facilitators will work with local communities to carry out resilience-based participatory analyses of local fragility risk. The findings of the analyses will be integrated into the activities of the LDPs and ill will help ensure that LDPs are able to effective address factors of fragility and social cohesion bottlenecks.16 In recognition 16 A recent review of 24 impact evaluations of social cohesion programs showed that a failure to identify the specific local factors Nov 09, 2020 Page 11 of 18 The World Bank Casamance Economic Development Project (P175325) of the multi-dimensional nature of the fragility factors in Casamance, this activity will leverage innovative work piloted in Guinea and the Lake Chad region with support from GFDRR to design a local development tool to help communities become more resilient to intersecting risks such as climate change and FCV. (ii) local level cohesion dialogues: in recognition of the distinct barriers to equal participation that women and youth face the component will provide targeted capacity support (see social dimensions outlined in the menu of capacity building activities below) to support women and youth-led groups to develop proposals that address barriers to their full participation in community decision making—i.e. engagement with technical bodies under the CRs (such as les commissions domaniales, which advise on local land issues, or social norms which maintain inequitable beliefs and practices on gender). The component would allocate separate cohesion grants (around $10k) to support projects identified by the women and youth groups to finance collective action and social cohesion-building activities identified in these fora. The selection criteria will ensure that these grants are used to enhance social cohesion and will include activities that (a) top-up or complement LDPs or make LDP investments more accessible and inclusive of women and youth; (b) target barriers or harmful social norms identified by youth or women; and (c) can be feasibly implemented with a one-year period. The projects supported with be defined by communities but could include life-skills and and vocational training, cultural and sports activities, and training on engaging effectively/constructively with the media. These groups will monitor and evaluate the implementation of these activities and engage in regular meetings with CRs and the broader community in the context of monthly Townhall- type meetings. Finally, to ensure that these conclusions of the dialogues are well integrated into LDPs and other project activities, the component will invest in feedback loops and joint accountability mechanisms. This includes a project management information system that allows for public access to project data, social audits and other feedback mechanisms; as such the component will also finance training, consultant services, equipment, communications materials and incidental operating costs associated with meetings, materials, learning events, and information systems, etc. The project will leverage digital tools to support planning, including geo localization of investments, to support transparency in fund allocation and close- to-real time feedback mechanisms. An on-line hub will also be created for these groups to be able to share information and then design their interventions based on this information; the online hub will then used as a mechanism to update and inform the online ‘Youth and Women’s Networks in Casamance.’ The hub will also serve as an ‘Advisory Committee/Sounding Board’ for youth and women-led aspects of the other project components and provide a framework in which national and international partners can be engaged with the project with a view to scaling it up to other communities across the Casamance. blocking intergroup social cohesion hindered the effects of some programmes, a problem which may be resolved by conducting conflict assessments beforehand. International initiative for Impact Evaluation, “In fragile situations, which interventions strengthen intergroup social cohesion?� https://www.3ieimpact.org/sites/default/files/2020-10/Social-cohesion-SR-brief.pdf Nov 09, 2020 Page 12 of 18 The World Bank Casamance Economic Development Project (P175325) Table 3. Potential menu of capacity building activities: Capacity support for CRs Key social dimensions/ youth- targeted programs o Participatory planning of local o Gender and youth development priorities; inclusion/Gender equality and o Community implementation and cultural norms monitoring of subproject activities o Social cohesion and inclusion o Citizen engagement including between different social groups grievance redress mechanisms and o Conflict monitoring and accountability resolution o The roles and responsibilities of o Media training local government to facilitate CDD o Life/behavioral skills (teamwork, approaches communication, problem o Climate change and resilience in solving) subproject management o Psychosocial support17 and o Awareness raising on sustainability counseling and maintenance arrangements o Gender-based violence o Agency and confidence 18 building Component 2. Improving local connectivity and access to economic activities in lagging regions This component aims to improve accessibility of the most isolated rural communities (tentatively, focusing on Sedhio and Kolda) and improving said communities’ access to roads leading to local markets and agricultural production zones. Connectivity has been identified as one of the key development bottlenecks in Casamance as outlined above. Sites for reconstruction, rehabilitation, upgrading, and re-equipment of local infrastructure will be identified through the local development planning process to ensure that the infrastructure is well coordinated with regional planning to maximize the connectivity benefits. Site selection with be confirmed through partnership between technical agencies and target communities facilitated by a village committee with representatives from different social groups. Facilitation will ensure that all groups including those that are historically marginalized groups are engaged in the planning and decision-making steps in order that the productive infrastructure opens up opportunities equally to men, women, and youth, and takes into account the special needs of the disabled and other vulnerable groups. Investments under the window will also employ local labor as much as possible during rehabilitation/works, especially for women and youth. This component will make investments including: (i) improvement of the poorest rural communities’ road access through 17 Evidence from randomized control trials suggests that psychosocial support can lead to higher earnings for beneficiaries. See Blattman, Christopher, Nathan Fiala, and Sebastian Martinez, “Generating Skilled Self-employment in Developing Countries: Experimental Evidence from Uganda.� The Quarterly Journal of Economics, 129 (2): 697–752 (2013). 18 Some relevant findings are available in Nader Kabbani. Brookings Institution. The Role of Youth in Post�Conflict Stability and Economic Recovery in the MENA Region. Draft for discussion. February 2020. Nov 09, 2020 Page 13 of 18 The World Bank Casamance Economic Development Project (P175325) spot improvements on about 400 km of unclassified roads linking rural communities with districts and urban centers (US$4 million); (ii) rehabilitation and maintenance of about 250 km of selected rural roads to increase access to commercial infrastructure and zones with high agricultural potential, building on rural roads maintenance pilot project of PPDC with labor intensive methods (US$10m); and (iii) strengthening of the capacity of the staff in the area of general contracting and the maintenance of rural roads (US$1m). Activities will be implemented with technical support from regional agencies who were involved in the implementation the PPDC project, principally: Agence de Gestion des Routes (AGEROUTE). While identification of infrastructure will be based on evidence-based technical considerations to make sure investments can lead to promoting territorial economic development beyond target small groups, target communities and CRs will play a central role in the co-identification of priorities, implementation and maintenance of investments. Component 3. Broadening sustainable livelihoods opportunities for greater social and economic inclusion This component will support rural productive activities that increase economic opportunities for farmers and marginalized groups within target communities, with an aim that all parts of the community are able to benefit from opportunities created through improved market connectivity. Activities are grouped into three sub-components, each of which addresses different constraints to equal market participation by all members of the community: (1) supporting strategic value chain investments; (2) providing digital and technical advisory services to farmers to address market information asymmetries; and (3) fostering sustainable agricultural livelihoods. The direct beneficiaries of this component are local communities, farmers, and their organizations. By understanding the unique challenges and barriers that women and youth face in accessing capital and technical support for productive activities; this component will be tailored to respond to their specific needs and therefore to reduce these barriers. Component 3.1 Strategic value-chain investments for local development Under this component specific activities – through the provision of services by specialized partner institutions - will aim to enhance access to economic opportunities and markets of intended beneficiaries by financing investment in value chains. Local producer organizations will be identified through a competitive process open to applicants using clear eligibility criteria (including the ability to create local jobs), with a priority for women and youth-led groups. Eligible activities will include investments needed to: (i) expand production capacity and/or improve quality in order to increase access to larger- volume and higher value-added markets; and (ii) rationalize the production process, ensure quality control, processing, transporting and marketing products, and effectively address the valuation and marketing of products. The selection of recipients for support under this component will be community led with facilitation by technical agencies. While adapting a demand-driven approach wherein communities will choose priorities for investments, the project will also incorporate evidence-based technical considerations to make sure investments can lead to promoting territorial economic development beyond target small groups. To do so, the project will first identify potentially impactful local economic activities and value-chains as well as key barriers to promoting them (e.g. access to finance and/or market information) through a value-chain analysis; then, based on the needs identified by communities the project will provide support to target producer groups. To ensure inclusion, a youth19 and gender sensitive market and value chain analysis, and an assessment of associated community-based organizations and other potential partners (on productive activities as well as on innovation) will be undertaken during preparation to inform the types of investments under the window. Based on 19 Where possible and relevant, the analysis should also include the differential roles and responsibilities of adolescent girls and boys. Nov 09, 2020 Page 14 of 18 The World Bank Casamance Economic Development Project (P175325) preliminary assessments of the potential project areas, the types of activities that may be supported are outlined in Table 2. Potential activities: Matching grants for construction, upgrading, Additional technical support and skills rehabilitation, and/or expansion of development/transfer for the local stakeholders (with experts of the subject matters) o Production facilities of the identified strategic o Production technique of specific value-chains value-chains (e.g., small buildings, production o Irrigation skills and techniques centers, workshops, processing facilities, etc.) o Processing techniques and skills training for o Purchasing of small machineries improved value-addition o Procuring key ingredients for modernization of o Extension services for specific products the identified value-chains. Component 3.2 Digital advisory services for farmers This sub-component responds to the ongoing challenges identified under PPDC for producers in marketing and accessing market information and advances the efforts of PPDC to construct physical post-harvest infrastructure by providing digital services to community-level agricultural producers. As such, this component seeks to harness disruptive technologies with the objectives of: (i) improving advisory and information service provision for boosting agricultural productivity; (ii) ameliorating asymmetries in market information faced by farmers and (iii) providing data analytics for communities to improve their local climate adaptation planning, thereby improving their resilience. The project will support digital advisory services under this component to (i) establish decision support systems to more effectively prevent and manage weather- related agricultural crises, and response by integrating data and leveraging cutting edge science, innovation and technologies, and (ii) strengthen local capacity and institutional sustainability as well as enhancing private sector engagement to provide demand-driven digital advisory services including agro-advisory and impact-based hydromet/climate forecasting and warning services. The component will support development, distribution, and uptake of existing mobile-based ag-tech tools, in partnership with the private sector and civil societies (e.g. Comango); and support the integration of existing climate information that can better inform the development of agriculture and risk financing instruments (emergency funds, insurance, derivatives, contingency loans). Component 3.3 Fostering sustainable agricultural livelihoods This sub-component aims at promoting sustainable use of Casamance’s natural resources as sources of livelihoods as well as important cultural and natural heritage sites. Casamance is a renowned site of exceptional biodiversity and habitats for animal and plant species; but also, as mentioned in the context section, a historical site of common natural and cultural heritage shared between communities of Casamance and shaped over generations. The natural and social capital bound up in these links are threatened by social factors (conflict, fragility, unsustainable resource management) and climate change. This subcomponent seeks to support sustainable management of Casamance’s natural resources through supporting the restoration and management of agricultural lands in target communities and the conservation of traditional farming techniques (rehabilitation and development of selected rice valleys and horticulture perimeters) with the introduction of new and adaptive innovative cultivation modes such as organic farming and biodynamic agriculture. The main objective is to foster sustainable regional investments and economic growth through the provision of co-financing grants. These grants will in turn finance the acquisition of goods, technical assistance, infrastructure improvement, technical studies, and training. The direct beneficiaries of this component are local communities, farmers, and their organizations. Nov 09, 2020 Page 15 of 18 The World Bank Casamance Economic Development Project (P175325) Technical work under this component, such as the rehabilitation and development of selected rice valleys and horticulture perimeters, will be led by technical, regional-level organizations.20 Amongst the technical assistance provided under this sub-component will be support to local producers to conduct the process of formal labeling of agricultural products--i.e., products that respond to specific environmental, economic, social and aesthetic parameters. Overall, labeling is considered as a mechanism of good economic governance aimed at providing stakeholders with financial incentives to practice their activities (agriculture, handicraft, ecotourism, etc.) in a way that preserves the biodiversity and the ecosystem services of their landscapes, while improving their livelihoods, and integrating best production and processing practices and standards. Component 4: Project Management This component finances project’s operational and implementation costs, including the function of the Project Coordination Unit. Areas of project management to be covered by the component would include: effective social and environmental safeguards management and monitoring; financial management (FM), and procurement; preparation of work plans, budgets and progress reports; overall oversight of project activities; communication, M&E arrangements, including the set- up of a Management Information System (MIS) and pursuing ICT options for enhanced transparency and accountability. As part of the M&E arrangements the team will deploy an innovative social cohesion tracking system, based on regular beneficiary surveys, to measure progress on social cohesion and social capital.21 Component 5: Contingent Emergency Response Component (CERC) This zero-budget component would serve as a contingent emergency funding mechanism that could be triggered in the event of a natural or man-made disaster and/or health crisis such as pandemics through formal declaration of a national emergency, or upon a formal request from one of the Governments. In the event of such a disaster/crisis, funds from the unallocated expenditure category or from other project components could be reallocated to finance emergency response expenditures to meet urgent needs. The operations manual will describe in detail the implementation arrangements for the immediate response mechanism. Legal Operational Policies Triggered? Projects on International Waterways OP 7.50 No Projects in Disputed Areas OP 7.60 No Summary of Screening of Environmental and Social Risks and Impacts . 20 Agence d'Exécution Travaux d'Intérêt Public (AGETIP); Fonds National de Développement Agro-Sylvo Pastoral (FNDASP) ; Société de Développement Agricole et Industriel du Sénégal (SODAGRI) ; and Agence Nationale d'Insertion et de Développement Agricole (ANIDA). 21 This will draw on the recently completed “Social Capital and Social Cohesion Measurement Toolkit for Community -Driven Development Operations,� by Mercy Corps in partnership with the CDD and Social Cohesion Gl obal Solution Groups. Nov 09, 2020 Page 16 of 18 The World Bank Casamance Economic Development Project (P175325) . CONTACT POINT World Bank Mame Safietou Djamil Gueye, Nicolas Perrin Senior Social Development Specialist Borrower/Client/Recipient Ministry of Economy and Finance Implementing Agencies Project Implementing Unit Youssouph Badji Project Coordinator youssouph.badji@gmail.com FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects APPROVAL Task Team Leader(s): Mame Safietou Djamil Gueye, Nicolas Perrin Approved By APPROVALTBL Practice Manager/Manager: Nov 09, 2020 Page 17 of 18 The World Bank Casamance Economic Development Project (P175325) Country Director: Nathan M. Belete 28-Dec-2021 Nov 09, 2020 Page 18 of 18