Documentof The World Bank FOR OFFICIAL USE ONLY ReportNo. 44928-SD GLOBAL FOOD PRICE CRISIS RESPONSEPROGRAM REPUBLIC OFTHE SUDAN EMERGENCY PROJECTPAPER ONA PROPOSEDFOODPRICE CRISISRESPONSETRUST FUND GRANT TO THE GOVERNMENT OF SOUTHERN SUDAN INTHE AMOUNT OF US$5.0 MILLION FORA SOUTHERNSUDANEMERGENCY FOODCRISISRESPNSEPROJECT September 23,2008 Sustainable DevelopmentDepartment Agriculture andRuralDevelopmentUnit CountryDepartment AfricaRegion This documenthasa restricteddistribution and maybeusedby recipientsonly inthe performanceof their officialduties. Its contentsmay not otherwise be disclosedwithout World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate EffectiveSeptember21,2008) Currency Unit = SudanesePound SDP 1US$ = 2.0SDP FISCALYEAR January 1to December 31 ABBREVIATIONSAND ACRONYMS APL Adaptable ProgramLoan AAH Action Afrika Help ASARECA Association o f Agricultural ResearchersinEast and Central Africa CARE Cooperation o fAmerican ReliefEverywhere CES Central Equatoria State CQS Consultants Qualification Selection CTRC County Technical Review Committee CPA ComprehensivePeaceAgreement CRS Catholic ReliefServices DGs Director Generals DPs Development Partners EA Environmental Assessment EAA External Audit Agent ESAF Environment and Social Assessment Framework FBS FixedBudget Selection FA0 Food andAgriculture Organization FCPMF FoodCrisis Prevention andManagementFramework FMFA Financial Management Framework Agreement FNSC Food andNutrition Security Committee FPCR FoodPrice Crisis Response FPCR-TF FoodPrice Crisis ResponseTrust Fund FSA Food Security Fund GDP Gross Domestic Product GFRP Global Food Crisis ResponseProgram GNI Gross National Income GoSS Government of Southern Sudan IBRD InternationalBank for Reconstruction Development ICB International Competitive Bidding ICRISAT International Crops ResearchInstitute for the Semi-AridTropics IDA InternationalDevelopment Association ILO International Labor Organization of the UnitedNations IFRs InterimFinancial Reports INGO InternationalNon-Governmental Organization IPPF Indigenous PeoplePlanningFramework LCS Least Cost Selection LFDP Livestock andFisheries Development Project 11 LIB LimitedInternational Bidding LICUS Low IncomeCountriesunder Stress M&E Monitoringand Evaluation MAF Ministry ofAgriculture and Forestry MARF Ministry ofAnimal Resources and Fisheries MDTF Multi-DonorTrust Fund MDTF-S The Multi-Donor Trust Funds for SouthernSudan NCB National Competitive Bidding NGOs Non-GovernmentalOrganizations NPA NorwegianPeople's Aid NRRD-SWG Natural ResourceandRuralDevelopmentSector Working Group OP OperationPolicy PA ProcurementAgent PAA Project Accounting Agent PCU Project CoordinationUnit PCF Post Conflict Funds PDO ProjectDevelopmentObjective PIUS Project ImplementationUnits PMP PestManagementPlan PTC Project Technical Committee QBS Quality BasedSelection QCBS Quality and Cost BasedSelection R D S RuralDevelopmentStrategy RRC RapidResponse Committee SAFDP Support to Agriculture andForestryDevelopmentProject SPLM Sudan Peoples' Liberation Movement SRF Sudan RecoveryFund SRF-ss SudanRecoveryFundfor SouthernSudan ss SouthernSudan SSEFCRP SouthernSudan EmergencyFood Crisis ResponseProject SSPSC SouthernSudanProject SteeringCommittee sss Single Source Selection SSTSC SouthernSudanTechnical SteeringCommittee TA Technical Assistance TOR Terms ofReference UN UnitedNations UNDP United Nations DevelopmentProgram UNICEF UnitedNations Children's Fund WFP World FoodProgram Country Director: Kenichi Ohashi Sector Manager: KarenM.Brooks iii FOR OFFICIAL USE ONLY This document has a restricted distribution and may be used by recipients only in the performance o f their official duties. Its contents may not be otherwise disclosed without World Bank authorization. Table of Contents A. INTRODUCTION ............................................................................................................................................. 3 B. EMERGENCY CHALLENGE-THE COUNTRY CONTEXT. RECOVERY STRATEGY AND RATIONALEFORPROPOSEDBANKEMERGENCY PROJECT .......................................................... 4 B1:COUNTRYCONTEXT ............................................................................................................. 4 B2: INSTITUTIONALAND CAPACITY ISSUES .............................................................................. 5 B3: GOVERNMENT'S RESPONSETO THE CRISIS B4: ASPECTS OFTHE EMERGENCYADDRESSEDBY THE BANK-FINANCED ..............................................................................67 INTERVENTION C. BANKRESPONSE: THEPROJECT .............................................................................................................. 8 c1:BANK'SSTRATEGYANDELIGIBILITY FORPROCESSINGUNDEROP8.0 ............................ 8 C2: THEPROJECT DEVELOPMENT OBJECTIVES ............................................................................... ...................................................................... 8 c3:SUMMARYOFPROJECTCOMPONENTS 9 c4:CONSISTENCYWITHTHECOUNTRY'S INTERIMSTRATEGYNOTE (ISN) ........................ 10 C5: EXPECTED OUTCOMES ...................................................................................................... 11 D. APPRAISAL OF PROJECT ACTIVITIES .................................................................................................. 11 D1: TECHNICAL ........................................................................................................................ 11 D2: ECONOMIC FINANCIALAND .............................................................................................. D3: INSTITUTIONAL 12 D4: FIDUCIARY ......................................................................................................................... ............................................................................................................... ".12 13 D5: ENVIRONMENTAL SOCIALASPECTS AND 13 D6: LESSONS FROMPASTEXPERIENCE ................................................................................... .......................................................................... 14 E . IMPLEMENTATION ARRANGEMENTS AND FINANCINGPLAN ..................................................... 15 El: IMPLEMENTATION ARRANGEMENTS ................................................................................................................. ................................................................................ 15 E2: PROJECTCOSTS 15 E3: FINANCIALMANAGEMENTANDDISBURSEMENTARRANGEMENTS ....................................................... ................................... 15 E4: PROCUREMENTIMPLEMENTATIONARRANGEMENTS E5: ARRANGEMENTS BANKSUPERVISION, MONITORING, AND EVALUATION FOR .................16 16 F . PROJECTRISKS AND MITIGATING MEASURES ................................................................................. 17 ANNEX 1WORLD BANKRE-ENGAGEMENTSUDAN IN ........................................................... 18 ANNEX2: DETAILEDDESCRIPTION PROJECTCOMPONENTS OF ............................................ 19 ANNEX3: RESULTS FRAMEWORK 25 ANNEX4-PROJECTCOSTING .................................................................................................. ........................................................................................... 27 ANNEX 5 FINANCIALMANAGEMENTAND DISBURSEMENTARRANGEMENTS . 28 ANNEX6--PROCUREMENT ARRANGEMENTS .......................................................................... ........................ 37 ANNEX 7: IMPLEMENTATION AND MONITORING ARRANGEMENTS ....................................... 45 ANNEX 8 PROJECTPREPARATIONAND APPRAISAL . TEAMMEMBERS .................................. 47 SUDANCOUNTRYAT A GLANCE ......................................................................................................................................... .............................................................................................. 48 MAP 51 iv . SUDAN EMERGENCY OPERATION PROJECTPAPERDATA SHEET Southern SudanEmergencyFoodCrisisResponseProject(SSEFCRP) - - AFRICA Date: September 23,2008 TeamLeader:JohnJ Oloya CountryDirector: Kenichi Ohashi Sector: Agriculture Services, Social Sector ManagerDirector:KarenM.Brooks Protection Lendinginstrument: Emergency Operation Theme: Rural Services & Infrastructure (S); Social Protection (S); Agriculture Environmental Cat: B Project ID:P113586 ProjectID(s): P113586 TotalAmount: US$5.0 Million Proposedterms: Grant Expectedimplementationperiod:3 years Expectedeffectivenessdate:October 31, Expectedclosingdate: September 31,2011 2008 Borrower:Government o f Southern Sudan Responsibleagency: Ministry o f Amiculture andForestrv (MAF) DevelopmentObjective: The Project Development Objective (PDO) is to increase access to food for consumption by the food insecure households living in six o f the most distressed counties o f the Southern Sudan. Short Description: The proposed operation will finance three main aspects, namely: (i)accelerated supply resDonse o f agricultural productivity to boost increased domestic food production o f some selected staple food for the target groups as well as for distribution through trade and reallocation; this element will be implemented through the Norwegian People's Aid ( M A ) and Local Authorities (LAs); (ii)social safetv net measures targeting the food insecure households in the said six counties and implemented in tandem with the on-going Multi- Donor Trust Fund-Sudan (MDTF-S) and Sudan Recovery Fund (SRF) activities; and (iii) proiect implementation support to finance technical assistance, operating costs, equipment, and goods to ensure rapid and effective delivery o fthe proposedresults. The proposedgranl i s being undertaken under the Global Food Crisis Response Program (GFRP), which was endorsed by the Board on M a y 29, 2008, and will be financed out of the Food Price Crisis Response Trust Fund(FPCR TF). FinancingPlan(US$m) ISource ILocal I Foreign ITotal Borrower Total IBRD/IDA Trust Funds(FPCR-TF) 5.00 5.00 Others Total 5.00 5.00 1 2 A. INTRODUCTION 1. This EmergencyProject Paper seeks approval to provide a grant inthe amount o fUS$S.O million to the Government o f Southern Sudan (GoSS), an autonomous entity within the Republic o f the Sudan, for a Southern Sudan Emergency Food Crisis Response Project (SSEFCRP). The proposed grant is being undertaken under the Global Food Crisis Response Program (GFRP), which was endorsed by the Board on May 29, 2008, and will be financed out o f the Food Price Crisis Response Trust Fund (FPCR TF). The objectives o f the GFRP are to: (i) reduce the negative impact o f high and volatile food prices on the lives o f the poor in a timely way; (ii) support governments in the design o f sustainable policies that mitigate the adverse impacts o f highandmorevolatile food pricesonpovertywhile minimizingthe creationo flong-termmarket distortions; and (iii) support broad-based growth in productivity and market participation in agriculture to ensure an adequate and sustainable food supply response. 2. The proposed interventions under the FPCR TF would cover three main areas:' (i) acceleratedsupply response to increase domestic food production by a combined strategy that will ensure in the short- (6-12 months) to medium-term (9-24 months) increased domestic production o f some key staple foods2. The expected outcomes through this component will include: a) expanded productivity and availability o f staple food through rapid technology transfer mechanisms; b) enhanced food availability all the year round for the food insecure households through promoting food storage facilities and better access at farm level; (ii) social safety net measures that will finance public works targeting food insecure households. The intention would be mainly to enable these groups to gain access to food for consumption through rehabilitation works that would restore needed rural infrastructure; and (iii) implementation support to ensure rapid and effective delivery of the proposed results. This will consist o f financing: a) the overhead costs o f implementing agencies and the GoSS implementation units; b) M&Esystem development; and c) overall coordination expenses. 3. The SSEFCRP is an emergency response, formulated inthe context o f the GoSS' overall strategy for livelihood security that underpins increase in access to food and nutrition to the population. Consequently, it constitutes the Bank's direct contribution to the joint UN/GoSS strategy and programs. The project is designed to strengthen the existing and on-going initiatives o f the GoSS andthe other actors by addressing specific aspects of the overall strategy. The project will enable the Bank to extend its operation to an additional three States3beyond the five covered under Multi-Donor Trust Fund-Sudan (MDTF-S) supported projects. Overall, the responsibility for implementation o f the project rests with the Southern Sudan Project Steering Committee (SSPSC), which i s an inter-ministerial, highlevel Committee chaired by the Minister o f Agriculture andForestry. The Committee is already in existence andhas representation of the 'It is plannedthat this project will work very closely with the new UNinstrument, the Sudan Recovery Fund- Southern Sudan. The latter is an instrument that will respondto the financing gaps o fthe GoSS under the recovery activities. The major staple foods beingconsidered are: rice, maize, sorghum, ground nuts,beans, cassavaand sweet otatoes. 'Currently under the MDTF-S, the Bank i s implementing two projects covering crops, livestock, forestry and ' fisheries sub-sectors infive States, namely: Eastern and Central Equatoria, Jonglei, Unity,andUpperNile. Ineach State, the projects cover five counties. The SSEFCRP will, however, expand into the Western Equatoria (Yambio County), Western Bahr el Ghazal (Raja County) and Warrap (Tonj North County). 3 participating States and development partners (DPs) who are involved in the implementation of the Sudan Recovery Fund(SRF). B. EMERGENCYCHALLENGE-THE COUNTRY CONTEXT,RECOVERY STRATEGYAND RATIONALEFORPROPOSEDBANKEMERGENCYPROJECT B1:COUNTRYCONTEXT 4. Sudan currently enjoys a fragile peace over most o f the country (other than Dark) in line with the 2005 Comprehensive Peace Agreement (CPA), signed between the northern- dominated government and the SudanesePeoples' Liberation Movement andArmy (SPLWA) in January 2005. Under the CPA, Southern Sudan was recognized as an autonomous entity andthe Government of Southern Sudan (GoSS) was established. Sudan i s currently under international scrutiny following the recent request by the prosecutor o f the International Criminal Court (ICC) for an arrest warrant to be issued against President Bashir on charges o f genocide, crimes against humanity, and murder. Sudan is also set for a general election in 2009 and a referendum in 2011, both o f which are specified in the CPA. These critical milestones in determining the success o fthe CPA carry levels o frisk that the design o f the project has to consider. 5. Southern Sudan is a structurally food deficit region o f Sudan. Recent assessments (June 2008) by the United Nations Food and Agriculture Organization (FAO) indicate that Southern Sudan imports large volumes o f food from neighboring co~ntries.~ Inkeeping with experience worldwide, food prices in Southern Sudan have risen steadily over the past few years. As a land- locked country, Southern Sudan i s particularly vulnerable to the ongoing developments inglobal commodity markets as increases in food import prices are compounded by increases in fuel and transport costs. In addition, Southern Sudan consumers have been hard hit by the rise inprices o f agricultural products as a result o f increase inpopulation movement that beganwith the retum o f peace following the signing o f the peace accord in 2005.' Recently prices for grains like maize and sorghum have escalated more rapidly. In Juba for instance, the price o f maize has increased by 11 percent between February and May 2008. Sorghum prices have also steadily increased. As o f May 2008, the increases were 30, 19 and 18 percent above the February 2008 sorghum price in the three major towns o f Wau, Juba and Aweil respectively (FAO/WFP, June 200Q6 6. Considering the global food price increase which is affecting the region it i s unlikely that the price increases will slow down. So far the effects o f global food price rises cannot be reduced in Southern Sudan because o f the country's high level food deficit largely caused by insecurity in areas like Central, Eastern and Western Equatoria, and Abyei. While there have Regional trade inagricultural produce has increased following improvement inroad and water communication. According to FA0 Special Report released inJanuary 2008, annual volumes o f trade incereals and food crops betweenUganda and Central Equatoria State are estimated at 1,800 tones o frice; 3,600 tones o froot and tubers; and unspecified amount o fplantains, eggs, vegetable, etc. However, prices o f imported cereals are higher inJuba compared to those locally produced. Highcosts o ftransport and taxation are the two mainreasons. InarecentAnnual Needsand Livelihoods AssessmentbyFAOAVorldFoodProgram(WFP), it was projectedthat an additional 372,000 returnees would be expected this year. Therefore, the total population o f Southern Sudanese categorized as vulnerable in2008 would then be 1.5 million. The analysis, however, concludes that food price for imported cereals were muchhigher than those produced locally. 4 been increases in cereal production in the South since 2002, according to FA0 reports, these increases are insignificant and are limited to maize and sorghum. Southern Sudan's situation is also impacted by the policy o f the Government o f National Unity (GoNU). While Sudan is one o f the biggest recipients o f food aid, it is reported to have produced large cereals for export, ignoring its own food insecure population'. 7. The GoSS, together with its DPs, i s determinedto pursue a coherent agricultural and rural development strategy aimed at raising the current low levels o f agricultural productivity. During the initial first phase (2005 to 2008) o f the MDTF-S, the GoSS provided support for the rehabilitation o f smallholder subsistence producers, who make up the majority o f the farming population. The results have been positive'. Inresponse to the vulnerability ofthe region, the GoSS and its DPs have agreed to tackle the issue o f food and nutrition security through a multi- sectoral approach discussed inSectionB3. 8. The heavy dependence on rain-fed agriculture andthe continuing low recovery o f the food sub-sector are among the sector's key constraints. For example, FA0 has recommended to GoSS that priority be given to strengthening agricultural production systems to increase domestic production and reduce the food price crisisg. Small-scale irrigation development, which the Bank could actively support, is capable o f reducing dependence on rainfall, and driving agricultural productivity growth over the medium to longterm. This strategy has been suggested by Ministry o f Agriculture and Forestry (MAF) and will be implemented under MDTF-S resources. The South also has unexploited internal markets partly as a result o f the lack o f internal road and other transport linkages. The national plan currently emphasizes improving regional supply routes through Ethiopia, Kenya and Uganda. In the short run, immediate measures are needed to ensure that internal markets are accessible through improved rural roads, better communication and increased levels o f domestic food production so as to protect consumers from the rapidly rising cost o f imported foods. B2:INSTITUTIONAL AND CAPACITY ISSUES 9. Southern Sudan is recovering from 25 years o fprotracted violent conflict and the situation remains extremely fragile. After the signing in 2005 o f the Comprehensive Peace Agreement (CPA), the question o f institutional development emerged as one area o f priority concern. In large part the implementation arrangements for current programs involve international NGOs, UN agencies and other donors, most of which are oriented to humanitarian interventions. Government staffing is still very weak with paid appointments only at the GoSS and State levels, resulting inMinisters, Director Generals (DGs) and Directors with few, if any, staff to direct. At the county levels where the project is focused, there is virtually no public sector capacity to talk about. '*Traditional Jeffrey Gettleman ofNew York Times reporting his interview with WFP on August 10,2008 on Food Chain. food production has gone up since 2002 by 40% due to the improved security situation. However, prices of cereals remainhigh due to low outputs and increasing returnees' population. The food security brief o f June 2008 reported that the domestic retailprices for sorghum and maize inJuba were lower than the import parity prices by 26 and 33 percent respectively. This is attributed to the increased domestic production o fthese crops. 5 10. As part o f the MDTF-S support to the sector, strengthening capacity o f the public sector actors has been considered to spur and deepen economic and social services delivery. In addition, donors' assistance will continue to evolve from a post-conflict relief mode to one in which sustainability, national ownership, and formal institutional development will increasingly gain precedence. While muchprogress has been made interms o f Government leadership on the policies, plans and strategy, its capacity to manage financing and implement development programs still remains weak". However, for this project, the overarching concern is on how the decision-making processes will be firmly aligned to the public sphere, to ensure a supply response that i s supported and sustained by GoSS. 11. Implementation arrangements for the SSEFCRP address these issues, taking into account the need for rapid mobilization. The project will, therefore, adopt institutional and implementation arrangements that are functional, fully owned by the Government, and have proven to be effective under other on-going interventions. For these reasons, the SSEFCRP will be implemented by NGOs who will be sole sourced by the MAF. The selection criteria and process have been discussed in Annex 6 and include a sound track record o f the NGOs in the sector. To enforce accountability andthe implementation o f the Bank's fiduciary responsibilities, the operation will ensure that the participating NGOs have fiduciary experts to help ensure accountability. However, overall coordination and oversight will rest with the existing Southern Sudan Technical Committee (SSTC). The SSTC i s a technical secretariat within the SSPSC that is chaired by the Minister o f Agriculture and Forestry. The SSPSC, therefore, will work through the technical secretariat to monitor and supervise the implementation o f the activities that will be contracted out to the NGOs. B3:GOVERNMENT'S RESPONSE TO THE CRISIS 12. GoSS has set out its strategic response to the food crisis as part o f its overall effort toward strengthening livelihood and food security programming. It i s a multi-sector approach steered by the ministries that constitute the Natural Resource and Rural Development (NRRD) Sector Working Group (SWG). Through consultation, the GoSS has gained the support o f its DPs, in particular the World Bank (through the MDTF-S) and the UN agencies (through the Sudan Recovery Fund [SRF]). So far the GoSS response strategy has focused on two time horizops as stated below: Short-term response: (i)establishing an inter-ministerial Food and Nutrition Security Council (FNSC) that will guide policy development at the highest level; (ii) targeted safety net programs to meet basic needs; (iii)enhancing quick impact agricultural interventions to resource poor farmers; and (iv) mitigation o f the domestic pass-through o f global price rises and ensuring consistent supply o f imported foods in the future. Measures being considered include: removal o f multiple taxes on staple food trade, removal o f import duties on some selected staple food, like wheat, among others. Already inresponse to this, FA0 has mobilized US$250,000 to support the measures to alleviate food insecurity through institutional support to MAF and Ministry o f Animal Resources andFisheries (MARF); loThe GoSS has, however, recruited three firms to oversee its fiduciary responsibilities as part o f strengthening its weak implementation capacities. These are: Crowns Agent for procurement, KPMGfor finance management and Price Waterhouse Coopers to monitor the implementation o f GoSS investments. 6 Medium- and long-term response: aims at boosting domestic food production and invigorating markets in Southern Sudan including: (i) improving rural infrastructure and establishment o f strategic food security reserves; and (ii) scaling-up and strengthening agriculturalproduction systems. 13. Overall, the policy responses outlined above are consistent with the vision o f the GoSS as recently articulated in its request for the next phase o f the MDTF-S (2008-2011). It is also consistent with what i s being implemented under the annual plans o f the concerned ministries. Under the proposed operation, the GoSS will, therefore, implement a mixture o f the short- to long-term responsesthat are re-enforcing the on-going initiatives. B4:ASPECTS OFTHE EMERGENCYADDRESSEDBYTHE BANK-FINANCED INTERVENTION 14. The SSEFCRP will address two key elements o f the GoSS strategy, with a particular focus on areas where the Bank has a comparative advantage." It will support and expand current initiatives under the MDTF-S by targeting groups o f food insecure households inthree additional counties: Raja (Western Bahr el Ghazal), Tonj North (Warrap State) and Yambio (Western Equatoria). The other three Counties: Tonga (Upper Nile), Panriang (Unity State) and Morobo (Central Equatoria) are located in States where the MDTF-S i s operational. The choice o f the six counties out o f seventy nine (79) i s discussed in Annex 2. Interventions under the safety nets will help mitigate seasonal shocks arising from poor access to food for consumption. However, additional focus on strengthening the production systems o f food insecure households by the project aims to double the production o f staple food from food surplus areas for internal distribution. The operation will, therefore, finance two NGOs, Norwegian People's Aid (NPA) and Action Africa Help International (AAH-I), to intensify agricultural technology transfers (seeds, animal traction, training, etc.), and revitalize private investment in post-harvest losses, low-cost grain storage and food marketing and distribution. These activities were pragmatically selected to be responsive to the unique situation in the Southern Sudan, and above all, to complement the proposed support under the MDTF-S as well as the on-going MDTF-S supported activities under the Ministries o f A 'culture and Forestry (MAF); and Ministry of Animal Resources and Fisheries (MARF). 8f Effective institutional arrangements for implementation were appraised and discussed with the GoSS. The selection o f the NPNAAH-I as reputable agencies with strong track record inthe selected activities was made by the GoSS. Activities implemented through NPNAAH-I represent scaling-up and/or expanding their operations to new territories. The capability to support the design and delivery of well-targeted social protectionresponses, andavailability o fa multi-sectoral expertise inJuba to advise and integrate technical, social and economic issues. ''Two projects, namely: Livestock and Fisheries Development Project (LFDP) and Support to Agriculture and Forestry Development Project (SAFDP) are now underimplementation and both focus on the recovery o f the rural livelihoods o f the people of Southern Sudan through productivity increase and institutional development. Bothcover the same five States of Jonglei, Eastern and Central Equatoria, UpperNile and UnityStates. The two projects also are trail blazing community grants mechanisms based on demand-driven approach and the implementation arrangements involve NGOs at the local level. 7 C. BANKRESPONSE:THE PROJECT c1:BANK'SSTRATEGY AND ELIGIBILITY FORPROCESSINGUNDEROP8.00 14. The response focuses on measures to address the short term implication ofthe global food crisis for Southern Sudan, which is fully consistent with the Bank's Global Food Crisis Response Program (GFRP) and i s in line with OP 8.00. The proposed project aims to: (i) respond to the urgent need for financial assistance arising from the impact o f the current food crisis identified by authorities inSouthern Sudan andbythe international community; and (ii) inplaceinputs put andinfrastructure for the short runthat will serve to improve food production. 15. The Bank's strategy for emergency support is articulated in its policy framework under OP 8.00-Rapid Response to Crisis and Emergencies. This framework provides that "In support o f this objective, emergency operations may include activities forming part o f the transitional social safety net programs, including cash payment, grants or micro-credit programs, etc." Overall, the strategy adopted in OP 8.00 i s aligned with the GoSS' strategic approach and takes place in the context o f the agreedjoint UNresponse. Under the GFRP, the Bank can provide technical and financial assistance to support Southern Sudan with its immediate and medium- term response to crisis resulting from shortfalls indomestic food availability incombination with risinginternational food prices. 16. Boosting domestic production o f the major staple foods as well as taking measures to improve accessibility by the most vulnerable are some o f the supply responses that are currently relevant for Southern Sudan. The proposed project will contribute to this as enumerated above. First, in the context o f Southern Sudan, the project will utilize an approach under the rapid response by improving agricultural productivity o f selected staple food crops through targeting directly the food insecure groups. In addition, this strategy responds to the GFRP's overall objective o f minimizing the threat posed by high food prices to the livelihoods o f poor communities that are emerging out o f a deep conflict. Southern Sudan cannot afford a fall in production in the upcoming season. More specifically, this request responds to one o f the explicit purposes o f the GFRP-namely, to enhance long-term food availability by helping ensure that short-term supply responses are consistent with and transition to sustainable medium and longer-term responses to the changingworld food situation. C2:THEPROJECT DEVELOPMENT OBJECTIVES 17. The Project Development Objective (PDO) is "increased access to food for consumption by food insecure households or groups living in six o f the most distressed counties o f Southern Sudan". This objective will be achieved through two inter-related strategies: (a) accelerated supply response of productivity enhancing technologies covering the six counties. This strategy will ensure short to long-term interventions that accelerate own production o f staple foods for own consumption and internal distribution. Key investments include: provision o f extension services, and agricultural technologies in crops and animals production, accelerated investments in food storage and reduction o f post-harvest losses at farm and local authority levels; and (b) safety net measures that will target food insecure households in the same locations through public works to be implemented by NGOs currently engaged under the MDTF-S public works and NPNAAH-I,on the basis o f task-specific as well as incentive-based 8 approaches to public works for enhanced food consumption o f the groups. These activities will target approximately 130,000 household^'^. c3:SUMMARYOFPROJECTCOMPONENTS (see Annex 2 for A detailed description o f the project components) 18. The Project will have 3 components:. a) Component 1:SupporttoAgricultural Productivity (US$3.0 million) 19. This component will do two things. First, it will target food insecure households in the selected counties as a short- and medium-term strategy, to double own food production and improve post-harvest management o f selected staple food crops all year round. Secondly, it will promote, through targeting o f mainly cooperative societies inthe surplus areas (Morobo, Yambio and Raga) as well as infood deficit areas (Tonga, Panriangand Tonj North), increased acreages (andtherefore outputs) o f selected staple food crops for seedbulking14and consumption through trade. Under the component, the operationwill: (i) use community grant mechanisms implemented by selected NGOs, to finance productivity enhancement: procurement o f oxen and oxen farming technologies, seeds, hand tools, and other agricultural equipment. It will also finance advisory services, capacity buildingandtechnical assistance. (ii)fundthrough selectedNGOs, the construction oflow cost foodbanks andfood granaries at strategic locations andimportantly at farm level. 19. This supply response will support the scaling-up o f community-based grant mechanisms now being implemented under the MDTF-S projects. Specifically, it aims to reduce food price vulnerability at the community levels through improved domestic production o f selected staple food crops thereby increasing total aggregate o f domestic food supply. This strategy also supports the implementation o f actions to manage fbture food risks. In support o f the latter, a quick assessment will be carried focusing on increasing own domestic production is hlly justified as a short- to medium term strategy because the current prices o f imported cereals and staple foods are very high due to transport costs and taxation. These activities will be implemented through NPNM-I and will involve LAs and community-based organizations (CBOs). l3Assumption i s that there are 6 persons per household. The FAO/WFPfood security assessmentdated November 2007 concluded that the food deficit inSouth Sudan is by over 90 million tons o f cereals. The six counties selected are food deficit but two o fthem are located invery productive areas. For the resources to complement the MDTF supported activities, three o fthe six counties are located inthe same States where the SAFDP and LFDP are operational. l4Most seeds have been imported from Kenya and Uganda by FA0 and WFP. The qualities o f these imported seeds '' have beencontested by MAF. Therefore MAF will like to engageNGOs and ICRISAT through this project to roduce emergency seeds for the first rain o f 2009. A rapidreview ofthe current post-harvest and supply chain practices inthe selectedsix counties will be undertaken this season. The survey will also determine types andnature o f storage facilities that would be required for the selected staple food. This will lead to the identification o f investment opportunities and improvements to be supported 9 b) Component2: Strengthening Community Safety Nets (US$1.5million) 20. Within the context o f the GFRP framework, this component will seek to mitigate shortfalls in food available for consumption to the food insecure households through public works. Through public works, food insecure households will manage shocks resulting from escalating food prices arising form low food supply mainly associated with seasonal floods and inaccessibility o f some o f the areas. The component will be implemented through the LAs and public works designated NGOs, selected by the GoSS. Participatinghouseholds will be selected on the basis o f agreed criteria by the NGOs and LAs'~. The component will, therefore, finance training, tools and equipment, non-wage costs and skilled labors to enable these food insecure groups to access food for consumption through the markets. The likely activities to be implemented will include repairs o f rural roads to allow accessibility by trucks, river crossings, and construction o f village storage. The focus will be on establishing public assets that would enhance agricultural productivity. Overall, this will enable food insecure households to access food for urgent consumption during hardship times through existing markets as a mitigating measure to manage shocks that normally come with sudden price surges exacerbated by inaccessibility. Second, it provides "seed capital" to overcome the hardship through own production for home consumption. (c) Component 3: Support to Project Implementation Arrangements (US$0.5million) 21. This component will finance the administrative costs o f the implementing NGOs, operational costs, technical assistance (including furniture and logistics), training, and purchase o f goods and equipment for the project implementation unit (PlU). The component will therefore, support the strengthening o f public structures for coordination at the different levels (National and County) as well as the costs related to the management o f the different activities. Specifically, the project management costs, monitoring and evaluation (M&E) and information andcommunicationservices will be funded under this component. c4:CONSISTENCYWITHTHECOUNTRY'SINTEFUMSTRATEGYNOTE (ISN) 22. The proposed activities are consistent with the current ISN for Sudan dated March 20, 2008 (Report No. 43036-SD), which proposes to support the GoSS to address three key challenges: improvement o f governance; increasing access to basic services; and ensuring sustainable and diversified pro-poor growth-especially in war-affected and marginalized areas. The proposed intervention under the global food crisis responds to elements o f all three objectives, through GoSS' and the Bank's continued focus on short-term stabilization and rapid response to emergency needs. This operation's specific intervention areas have direct linkages to economic revitalization and basic services work that the Bank i s already supporting through the MDTF-S. As set out in Chapter IV (pp14-19) o f the ISN, the Bank re-engaged with Sudan beginning in 2000. However, aside from some Post-Conflict Funds (PCF) and Low Income Countries Under Stress (LICUS) grants, the only funds the Bank has itself provided to Sudan have been US$10 million from IBRD surplus which was contributed to the two MDTFs (US$5 million each). Sudan's arrears prevent the Bank from re-establishing a normal program. So the great majority o f Bank's program in Sudan relies on donor funding from the MDTFs. While l6It should be recognized that most InternationalNGOs inSouthern Sudan, as part of their advocacy roles, promote the implementation of international laws such as campaigns against child labor and domestic violence. 10 Donors understand the reasons for this, they (and some UN agencies) have concerns that the Bank i s relying too much on leveraging such other funding. Against this background, a contribution from the GFRP trust fund would be a helpful demonstrationthat the Bank i s willing to make financial commitments to Sudan, where it i s able to do so. C5:EXPECTEDOUTCOMES 23. The Results Framework (presented in Annex 3) provides the basis for the M&E system. Overall responsibility o f project components and activities, as described in the Results Framework, will lie with the SSTSC, which will be supported by technical assistance. Key output indicators to measure performance include: number o ffood insecure households inthe project areawith food reserves 0 number o fpoor households inthe project areathat participate inpublic works D. APPRAISALOFPROJECTACTIVITIES D1: TECHNICAL 24. According to UN published data, Southern Sudan ranks as number 141 out o f 177 countries on the 2005 Human Development Index o f the low income c~untries'~. The primary drivers of poverty in Southern Sudan are conflict, displacement, depletion o f assets, lack o f appropriate production skills, and limited access to social services. Very low levels o f income and purchasing power, alongside the disruption associated with conflict and very limited economic infrastructure, have inhibitedeconomic activity andmarket development. 25. The majority o f the rural households have few or no assets, while even those with assets have often been unable to leverage their own resources to participate in the market. Some households remain unable to take advantage of livelihood opportunities to mitigate the repercussions from the food price crisis. Recent report by the FA0 and WFP Secretariats (January 2008) confirm that distress and shocks were significant in part o f 2007 production, which will require direct food transfers18. The facts about rural poverty in Southern Sudan also arise from its vastness, inaccessibility, and very diverse livelihoods. Southern Sudan's geographical location, high level o f traumatized community and influx o f returnees all create additional challenges and opportunities. 26. Agriculture remains essentially subsistence-oriented, with low technology inputs and little marketable surplus19.The project design aims to address these constraints by focusing on the food insecure households, the women and youth in particular. The introduction o f animal traction technologies, revitalization o f on-farm storage as well as central food bank technologies, and rural roads are based on acceptable standardpackages for Sudan and consistent with good "Over90%receivelessthanUS$1perdayand by2008 23% o fthe population o f Southern Sudanwill face food deficiencies. The concept o fUS$1per day is supposed to indicate the degree o f absolute poverty. This is based on context s that may not be applicable to Southern Sudan. In2007 alone floods destroyed over 89,547 haofcereal crops. Agricultural production activities are for most part done by women. Animaltraction is still beginning to re- emerge andmainlyinEquatoria (Kajo Kejiand Mundriareas), Lakes and Bahr el Ghazal. 11 practices. The designed operation will promote domestic production o f the key staple food and thereby enhancing internal markets through increased productivity o f the selected technologies. The difficulty with Southern Sudan i s that internal markets have not been fully exploited due to poor roadnetworks. Thus, promoting rapid rural investments infood storage andrural roads, for instance, will permit marginal areas o f Southern Sudan to gain access to food surpluses from the Green Belt2'. The project, therefore, i s designed to rapidly address key constraints in food preservation and transportation as well as to target animal traction as a means to increase food production inthe marginal counties. D2:ECONOMICAND FINANCIAL 27. The benefits from the proposed program are direct and indirect, as well as short-term to longer-term. As highlighted in the GFRP document, the urgency o f a response prohibits quantitative economic appraisal. Instead, a four-part decision criterion i s proposed based on: (i) context; (ii) beneficiaries; (iii) policy target expected benefit, cost-effectiveness o f benefit- cost ratios; and (iv) analysis o f fiscal sustainability, as presented below. 28. The overall policy context recognizes the post-conflict nature, severe market constraints andabsence o f alternativemeasures for significant donor interventions. Theproposed program is consistent with the framework set out in the GFRP. Targeting i s explicit in all components and focuses on the women, the youth, and the small-holder farmers. The combination o f social protection and productivity-enhancing interventions will ensure that the program delivers both immediate program results and benefits, and longer-term development gains. Conceming sustainabilitx it must be underlined that the project's main concern is to respond to a crisis and mitigate its negative impacts. While some aspects o f the program are sustainable, particularly those resulting from Component 2 as well as the investments under the community grant that would improve both governance and economic outcomes, others are clearly efforts to prevent livelihood security from total collapse. Like most humanitarian programs, some aspects o f Component 2 are fiscally unsustainable since it is unlikely that GoSS resources will be able to continue with the program. Besides, it would be GoSS intention to see that direct food import does not dampen down local production. In this context, although continued international support can be anticipated inthe hture inthese specific areas, GoSS would maintainvigilance in leading the development o fpolicies that would link humanitariansupport to development. D3:INSTITUTIONAL 29. The project will be under the overall guidance o f SSPSC. This inter-ministerial committee is chaired by the Minister o f Agriculture and Forestry or one o f the other ministers. The SSTC, chaired by the Undersecretaries o f MAF will be responsible for the technical overview and supervision o f the project. A focal person for the project, a Director General (DG) inthe MAF and also a member of the SSTC, will provide a link betweenthe national level and the NPMAAH-Iimplementing the project at the decentralized level. She will be supported,by a short-term project management and administrative specialist and a road engineer as the core personnel for the PIU for the project. The P I Uwill be embedded within the Project Coordination Unit(PCU) ofthe MAFestablishment and, therefore, fully supportedbythe expertise inthe said unit. The PlUwill ensure the day to dayproject management andaccountability to the SSPSC. 2oThe Greenbelt embraces the Equatoria Region namely Eastern, Central and Western Equatoria. 12 30. All the ministries that form the NRRD-SWWI are represented bothinthe SSPSC andthe SSTC. The SSTC will be responsible for approving the annual work-plan and budgets and for supervising the procurement activities. The SSTC exists already and i s supporting other projects being implemented under these different ministries. The overall policy oversight will be provided by an existing sector-wide SSPSC, which comprises the Ministers and Chairpersons of Commissions o fthe said organizations indicated above. 31. Overall, the GoSS institutional structures, which will be relied upon, have been in existence for two years and with the help o f technical and experienced TAs, they can perform their work relatively well. The NPNAAH-I and others selected have demonstrable capacities andcapabilities to deliver on the operations. They are quite knowledgeable o fthe culture andthe people and have long working experiences in the sector. However, additional support to fulfill fiduciary obligations has been proposed as part o f the financing o fthe NGOs' operations. D4:FIDUCIARY 32. The project will adopt the now well established MDTF-S financial management arrangements. The Project Accounting Agent (PAA) will disburse finances directly to the implementing agencies or the suppliers on the basis o f plans and accountability. Inthis context, the overall preliminary financial management risk assessment is considered Moderate. The project components will be implemented by the NGOs, one (NPA) already experienced in implementing MDTF-S activities. To reinforce accountability, the selected NGOs will be assessed for capacity to implement Bank's fiduciary requirements. And when found lacking, the project will provide under technical assistance, experts in procurement and financial management inlinewith the Bank'srequirement. D5:ENVIRONMENTAL SOCIAL ASPECTS AND 33. The Project is considered to be a Category B for environmental safeguards. ,The environmental and social impacts o f the project will be site-specific and in most cases mitigated by tried and tested methods. The GoSS will adopt an Environmental and Social Assessment Framework (ESAF), prepared with the help o f the World Bank, including all the relevant areas like Pest Management Plan (PMP) and an Indigenous Peoples Planning Framework (IPPF), which will be applied during the implementation o f the project. The project will exclude all activities requiring resettlement. These documents will be publicly disclosed in Southern Sudan and at the World Bank's InfoShop 90 days after effectiveness o f the project (as authorized under OPLBP8.00). 34. Indigenous People (OP. 4.10): The proposed Food Response Project will cover rural areas o f Southern Sudan with migratory tribes and rain-dependent small farmers. There is a possibility that the under-served states and counties will have the presence o f Indigenous People (IPS). In the event that the sub-projects are impacting on or are responding to the Ips, the Indigenous People Planning Framework will be applied as per the guidelines provided in the 21These include representatives o f the Ministryof Cooperatives and Rural Development; Ministry of Environment, Tourism and Wildlife; Ministry o f Agriculture and Forestry; Ministry o f Animal Resources and Fisheries and the Land Commission. The Ministry o f Finance and Economic Planning andrepresentatives o fNGOs dealing with natural resources and rural development andproducer organizations are co-opted members. 13 ESAF. Inthat context, an IPPFwill be prepared to ensure that the project will respect the rights, interests, dignity and culture o f the indigenous population as well as to ensure that they will benefit from the project. Safeguard Policies Triggered by the Project Yes No EnvironmentalAssessment (OP/BP/GP 4.01) [XI [I Natural Habitats(OPBP 4.04) [I [XI PestManagement(OP 4.09) [XI [I Cultural Property( OP 4.11) 11 [XI Involuntary Resettlement(OP/BP 4.12) [I [XI IndigenousPeoples (OP 4.10) [I [XI Forests(OPBP 4.36) [I [XI Safety of Dams(OPBP 4.37) [I [XI ProjectsinDisputedAreas (OP/BP/GP 7.60)' [I [XI Projectson InternationalWaterways (OP/BP/GP 7.50) [I [XI D6:LESSONS PASTEXPERIENCE FROM 35. The Bank's experience to date with emergency response operations in Southern Sudan has underscored the need to approach the immediate challenge with realism and simplicity. As such, the project's proposed implementation arrangements make few assumptions about the capability o f the selected implementing agencies. There is also the need to balance the questions o f ownership and speed, especially inthe context o f Southern Sudan where the environment has been heavily endowed with humanitarian support. By making this explicit as a GoSS-led intervention, in close collaboration with other active players, it becomes a demonstration o f partnership that if well managed, would build a strong foundation for a more sustained engagement inthe agricultural sector. 36. Lessons learned in Southern Sudan have shown that it is essential to work with organizations that have proven experience in exactly the type o f activities that are proposed. All partners including NGOs are currently deployed in Southern Sudan, with the professional staff and equipment needed to accomplish their mandate. Given the extremely compromised state o f infrastructure inrural areas, such capacities are invaluable. 37. The need for flexibility is another critical lesson that comes from emergency operations. As such, simplified procurement procedures are to be employed, and a framework agreement with the implementing NGOs, along the lines o fwhat is being learned inthe field, will form the basis o fthe legal agreement. By supporting theproposedproject, the Bank does not intend toprejudice thefinal determination of theparties' claims on the disputedareas. 14 E. IMPLEMENTATIONARRANGEMENTSAND FINANCINGPLAN E l:IMPLEMENTATION ARRANGEMENTS 38. The SSPSC exists and will provide policy oversight. The present members include political leaders from the States and the GoSS. Its technical secretariat, SSTC, provides overall technical coordination, review and guidance. This will be supported by two or three TAs, who will be locatedinthe existing project coordinationunit (PCU) o fthe MAF. Specific deliverables under components one and two will be managed by NPNM-I, identified by the SSTC and approved by the SSPSC. As an Inter-Ministerial committee, the different components will have a technical lead directly responsible for its supervision on behalfo f the SSTC. It should be noted that, while the emergency response to the food prices crisis in Southern Sudan embodies an urgent and immediate response, implementation arrangements-particularly for the agricultural component-will be structured to enforce the established framework in practice that embeds bothhumanitarianandlonger term development interventions under existing arrangements. 39. The implementation arrangements o f the project are as follows. The public works and the construction o f low cost on-farm or area-based food banks will be ledby the NPNM-I.They will use resources to recruit technical skills needed to support the implementation o f the project. Within the PCU, a post-harvest specialist inMAFwill take the lead on the supervision o fpost- harvest activities on behalf o f the SSTC. He/she will be supported by a TA whenever required. The Director General (DG) for Agriculture and Extension will be directly engaged in the technical oversight andwill be funded through the PIU. E2:PROJECTCOSTS 40. Summary costs per component are presented inthe following summary table, and detailed inAnnex 4. Inorder to ensurethe maximumflexibility indisbursement arrangements, the pr6ject financing has been categorized inonly two portions: the community grants and consultancy. The project will also use a report-based method o f disbursement. See Annex 4 for details. E3:FINANCIALMANAGEMENTAND DISBURSEMENTARRANGEMENTS 41. Financial management arrangements for this project will follow the current FM framework under the MDTF-S projects, which are being supervised by the Bank. The implementing entities will prepare their annual budget forecast for review by the PIU ir) the MAF andthe Bank for approval. The entities will handle all the financial management aspects using the PAA instructed procedures set out by the GoSS and the MDTF-S. The entities will 15 operate their project accounts with direct flow o f hnds from PAA, which will be audited by a GoSS-appointed auditor. See Annex 5 for details. 42. DisbursementArrangements. Upon effectiveness, hnds will be advanced to the GoSS ina similar manner to that being implementedunder the MDTF-S. Disbursementto the recipient will be based on an annual forecast to be submitted by the implementing entities. Subsequent disbursements to the implementing entities will be made into their accounts or contractors by PAA based on a N o Objection from the Task Team Leader. New advances will be made based on the forecast andupon satisfactory review o f the Interim Financial Reports (IFRs). E4:PROCUREMENTIMPLEMENTATIONARRANGEMENTS 43. Procurement for the proposedproject will be carried out inaccordance with the: (i) World Bank's "Guidelines: Procurement under IBRD Loans and IDA Credits" dated May 2004, revised October 2006; and (ii) "Guidelines: Selection and Employment o f Consultants by World Bank Borrowers'' dated May 2004, revised October 2006. In this framework, the project will follow simplified procedures consistent with the requirements o f OP 8.00 for Rapid Response to Crises and Emergencies. A simplified procurement planis presented inAttachment 1o f Annex 6. 44. The implementation o f the FoodResponse Project will be outsourced to NPA/AAH-Iand others using Sole Source Selection procedures or amendments to existing contracts. The Norwegian People's Aid (NPA) is already managing a US$4.9 million contract under the Bank's supervised MDTF-S. Bank procurement procedures will apply; however, in keeping with OP 8.00, they will be streamlined and maximum use will be made o f shopping, direct contracting and single source procurement procedures, with relaxed prior review thresholds to hrther facilitate the use o f such procedures. In accordance with OP8.00, the Bank will maintain a strong oversight and will conduct intensified supervision (with both technical and procurement specialists) duringproject implementation. E5:ARRANGEMENTS BANKSUPERVISION,MONITORING,AND EVALUATION. FOR 45. As required under OPh3P8.00, the shift from ex-ante to ex-post riskmitigation andcontrol measures requires task teams to intensify their supervision efforts through frequent missions and ex-post reviews. The majority o f the project team i s based inthe Juba Office and will provide on the spot support and supervision as frequently as required. Like other emergency projects being supported by the Bank, a minimum o f four intensive support missions per year will be carried out. This is in addition to the fortnightly review meetings with the implementing agencies:The project duration will be three years. A project review will be carried out at the end o f the first year o f implementation. The key focus for this implementation review will be: (i) fiduciary the issues; (ii)the effectiveness o fthe coordination mechanisms; and(iii) achievements o fresults. 46. Implementing agencies will be required to produce technical audit reports every 6 months and submit these as part o f their report to the SSTC. The SSTC as well as the SSPSC will also make regular spot visits to project sites. Resources will be provided to the SSPSC and the SSTC to enable them to make these visits. While the implementing agencies will make quarterly reports on progress made to the SSTC and expect feedbacks in SSTC meetings and in writing, the monitoring functions o f the GoSS will also be provided through field visits. 16 F. PROJECTRISKSAND MITIGATINGMEASURES 47. The project faces a number o f risks, some associated with the looming political processes including the 2009 parliamentary election and the main key political milestone in 2011, which will determine the political future of Southern Sudan as part o f the Sudan or a separate nation. The overall risk rating is assessed as substantial. Since the major risk for this project i s the implementation capacity in GoSS, the use o f NGOs and TAs has been proposed. Specifically, the team will focus on the following. Key Risks RiskMitigationFactors RiskRatingwith Mitigation 1.TargetingofAreas, and -Design of the project: the project is partly designed ~ S Beneficiaries:The project has to ensure self targeting mechanismespecially under the targeted only 6 o f the 80 counties in public works. The design also recognizes that there are Southern Sudan thereby raising other actors working inthe South that will reinforce the concerns about equity. The project objectives of the project thereby expanding the scope focuses on the food insecure o f actions towards reducing food price increases. In households, which couldbe addition, the NGOs selected to lead in the overwhelming. implementation have good records o f implementing projects in the region; have sound applications o f flexibility that will allow responsiveness to issues o f exclusion and therefore would be able to reduce conflicts over the limited resources under the proposed project -The PIUs particularly at the county levels will be strengthened by the NGOs to provide regular follow-up and assessment. Combined with the auditing system o f the implementing agents, this risk will be minimized; 2. Quality ofitems includingfood Controlmechanismswill bemadeeffectivewhen M stuff: Cases of adulteration o f seeds put inplacewiththe beneficiaries taking full control. and other production inputs have been Inaddition, clear roles andresponsibilitieswillhelp reported; andthere are possibilities o f reduce misuse o fpositions as well as frequent checks misappropriation o f some o f the and actions o f wrong doing. materials. 3. Weak procurementand financial Under the MDTF-S there is a working mechanism M management:currently the GoSS and for bothprocurementand finance management, some key implementing agencies have whichwill apply this project. There is also goingto weak systems for fiduciary be sole sourcing o fNGOs who are based inthe field responsibilities. and with capacities to deliver. 4. Country risk: Political tension The influence o fthe political levelonthe design is S between the ruling party, NCP, and its mainly inthe selection o f the project areas, which has Southern Sudan partner, SPLM, over already beendetermined. Subsequent implementation the implementation o f CPA is a major will be done by the NGOs and this will focus entirely concern. Lack o f clear decentralization at the community levels. The riskassociated with policies between GoSS and State country politics is high. governments is straining relations. I Risk ratings: HighRisk (HFgreater than percent probabilitythat the outcome/result will not be achieved; Substantial Risk (S)- 17 SOUTHERNSUDANEMERGENCY FOODCRISIS RESPONSEPROJECT ANNEX1:WORLDBANK=-ENGAGEMENTINSUDAN 1. The Bank began to reengage in Sudan in the early 2000s after an absence o f nearly a decade. Normal IDA financial support was, and remains, not possible due to Sudan's outstanding arrears. IFC and MIGA are not active. In2004-05, the Bank and UNco-led a Joint Assessment Mission (JAM) o f Sudan's recovery, reconstruction, and development needs. The J A M report informed a March 2005 Donor Conference, at which it was agreed to create two multi-donor trust funds (MDTFs), one for southern Sudan, and one for the country as a whole, to be administered by the Bank. Since then operations supported by the MDTFs have covered core capacity development for government, preparations for a census, replacement o f the currency, private sector development, and key interventions in education, health, transport, agriculpre, livestock andrural water supply. We have experienced significant implementationchallenges, as have all development and recovery programs inSudan, but performancehas steadily improved. 2. A new InterimStrategy Note (ISN) was discussed by Executive Directors on April 17. It sets out the Bank's plans to assist Sudan between now and December 2009, and also describes the process for eventual IDA financial reengagement. The key elements o f the ISN are: a) A peaceful and modern Sudan requires tackling three interrelated challenges: improving governance; increasing access to basic services; and ensuring sustainable, diversified, and pro-poor growth, with primaryattentionto war-affected and marginalized areas. b) Nationally, the Bankwill focus on stabilizing peace, including through analytical work and policy dialogue regarding key provisions o f the CPA. Planned products include: a new C E M on pro-poor growth inan oil economy; an I C A focusing on the needs o f small firms; phase two o f a PER; an Environment and Natural Resources study; and a CIFA. Inwar- affected and marginalized areas, our priority will be pro-peace development projects and buildingcapacity for community-driven development and local service delivery. c) Inthe South, the main focus will continue to be on helpingto builda competent, responsive and stable government, including by decentralizing service delivery to local level. Another key objective will be to help Southern Sudan develop a long-term strategy to transform itself into a well-integrated, self reliant, and viable economic unit, which begins to harness its wealth o fnaturalresources for the welfare o f its people. d) InDarfur, the Bankwill work with partners, as security allows, to assess development and recovery needs andto prepare programs to be implementedinthe event o fpeace. 3. The Bank opened a country office in Khartoum in 2005, where a Country Manager is based. A World Bank Office was established inJuba in 2006 to support the GoSS and facilitate the implementation o f MDTF-South. 18 SOUTHERNSUDANEMERGENCYFOOD CRISIS RESPONSEPROJECT ANNEX2: DETAILEDDESCRIPTION OF PROJECTCOMPONENTS Component1: Supportto AgriculturalProductivity(US$3.0 million) 1. This component will strengthen the existing initiatives o f GoSS under both the humanitarianand the transitional support to GoSS. The key objective o f the component is to contribute to reduction o f food price vulnerability at community levels through increased own food production for selected staple food crops. This will lead to increase in total aggregate domestic food supply, for the immediate food insecure households/groups in the locations as well as elsewhere, through market. This is a medium to long-term strategy. Additional strategy would be to implement actions to improve food storage management as well as food supply as short- to medium-term measures. The approach to this has been proposed in the following ways. First, through the proposed implementing agencies (NPNAAH-I), selected crops identified by the research system will be supplied to targeted cooperatives and farmers groups as well as smallholder farmers, the latter being food insecure groups. Acreage increase will be expedited through introduction o f and training in oxedanimal traction technologies, which are available at Kajo Keji and Rumbek. These technologies include ploughs, harrowers, seeders and weeders. It will also include provision o f planting materials and seeds for the selected beneficiaries; provision o f extensionbyNPA and LAs. 2. Secondly, working to ensure the availability o f food for consumption to the food insecure households will entail supporting accelerated uptake o f readily available technologies for staple crop drying, storage, treatment and milling at farm, community and small enterprise levels. Through NPNAAH-I the operation will build on its current scope o f work and promote/revitalize community-based low cost food banks and granaries. It will also promote food banks at the village and LA levels, depending on the locations. The component will therefore finance TAs, studies, community grants, andcapacity building22. 3. Increasing domestic production will be supported through community grants mechanism. This will be implementedby NPA, which has long experience inthe sector and is currently implementing a US$4.9 million contract under the MDTF-S and AAH-I, another NGO working inthe same sector. The actions to be fhded will include: i)improve access, o f the food insecure households on one hand and some selected medium-scale farmers inthe six counties, to animal traction technologies to increase acreage under staple food production. The key staple food crops prioritized include rice, sorghum, beans, sesame, cassava, sweet potatoes, maize and ground nuts. It also includes training in the use o f new technologies like animal traction; ii)supporting women groups through restocking with small ruminants and poultry particularly inWestern Equatoriawhere animal protein deficiency is highlyreported. 4. A rapid review will be commissioned by the SSTC, to determine the current post- harvest and supply chain practices in vogue and the types o f facilities available for cereals and 22A rapidreview o fthe current post-harvest and supply chainpractices inthe selected six counties will be undertaken. The survey will also determine types and nature o f storage facilities that would be required for the selected staple food. This will lead to the identification o f investment opportunities and improvements to be supported. 19 root crops. This work will be done inclose collaboration with the InternationalCrops Research Institute for the Semi-Arid Tropics (ICRISAT)23. This assessment would identify the investment opportunities that need improvement. This i s a supply response that will help establish improved food storage, possibly upgrading o f market facilities at strategic locations, which are owned by farmer's groups or private firms. The design o f the farm storage facilities will be determined from the demand side and the implementation would include training o f beneficiaries. 5. Targeting criteria. Two major criteria havebeen applied for targeting. First, those who are food insecure but capable o f own production when targeted with agricultural productivity technologies. This will apply to groups considered by the LAs andNGOs based on historha1or track records. Second, those individuals or groups o f producers who may not be food insecure but have recognizedcapacity to increase productivity and outputs o f specific crops that can be collected andstored for distribution. 6. Food insecure households, mainly those lacking assets and technical support will mostly be constitutedby smallholder farmers, and will be the core group to be supported under the project. This i s to enable them overcome the impact o f soaring food price through own production. They will also be supported by the project to revitalize use o f food stores and food management to improve food storage and, thus, reduce post harvest losses. However, the more affluent category o f producers, like organized groups, individuals who have skills and capability to increase production o f specific commodities for markets and, therefore, increase food for consumption for the food insecure will also be selected. The latter group will be carefully identified, to ensure that in selecting them, the program thus will not create wealth gaps. Their contribution will not only reduce the impact o f price increase on the people, but also that their direct contribution through advice and association with smallholders will be positive. This category will also promote productivity for distribution to other areas including urban like Juba town. In a way, they act like contract farmers that are targeted to ensure production o f food stock that benefits both the communities around them as well as establish food reserves that can be accessedby governments. These target groups will be identified by the implementing NGOs and the LA. The support, therefore, will be at groups, individuhl or village levels. 7. The selection o f the project area factored inmany considerations. First, selections were based on agro-ecology and the staple food crops to be produced. The use o f ecology also has implications to soil fertility and agro-climatic factors. Second, relatively populated areas were targeted, to ensure quick impact per population. Third i s accessibility by implementing agencies and therefore, levels o f security. The Government also wanted to ensure that equity i s met. Therefore, areas without any interventions were given preferences. Overall, the selection aims to support distressed areas and groups as well as surplus areas as sources for domestic food distribution. 8. The choices o f the staple foods were influenced by research priority setting inrelation to the different agro-ecological systems. The agro-based prioritization is also influenced by household's own priorities, which relates to the food values and cultural context o f the people. 23The MAF indicated that inSeptember 2008 there will be a plannedjoint assessmentofthe Southern Sudan Livelihood Security inwhich annual food requirements of the population will be determined, including the identification o fthe major needylocations. 20 These technologies are also readily available with ASERECA, a research consortium found n Eastern and Southern Africa andthey are willing to work with MAFon the same. 9. Community Grants-implementation arrangements.The MAF will contract NE 4 and AAHI as conduit for the implementation o f the grants, which detailed processing is explained in a Sub-Grant Operation Manual approved by the Bank. MAF will authorize the MFEPto disburse funds directly to the contracted NGOs, who will inturn, finance productivity based on targets set by the LA and the beneficiaries. Due to the absence o f commercial banks inmost ofthe areaswhere the projectwillbe implemented, the NGOswill beheldaccountable to the SSTC inthe use o fresources and will be working closely with the LA24. 10. A Technical Committee already exists buthas different capacity/capabilities at the State and the County levels. At the County, the County Technical Review Committee (CTRC) is made up of the Directors o f the technical services including agriculture. It i s chaired by the Executive Director, who is a civil servant and an accounting officer for the decentralized government. This committee will be supported through the project to oversee the implementation o fthe sub-grants at the county level. Importantly, they will help inthe process o f selection o f the beneficiaries. The details o f this will be provided in the Sub-Grant Operation Manual. 11. As a procedure, the NGO will undertake rapid assessment o fthe needs andthe capacity for implementation during the dry season and develop a menu o f supports needed by each group or individuals. It will undertake bulk procurements o f required needs and where applicable outsource to other entities provision o f services that would lead to meeting the desired goals. Overall, the NGO will be financially accountable to LAs and the SSTC. Technically, they will also be accountable to GoSS and LA for the products o fthe intervention. The NGO will determine the capacity o f the individuals or groups and use this information to propose a design for a series o f support activities which will be agreed between all parties. 12. Beneficiaryselection criteria.Project activities will target: (i) existing farmers groups or cooperatives with capacities to implement rapid uptake o f technologies; (ii) food insecure households, to be determinedbythe localities, by the NGOs, and the LAs. 24The UNhas employs relatively expensive, short term staff who, after producing good results have no contractual obligationto sustainthe outcomes. Under the NGO-LAsarrangements, qualified staff o f the GoSS can be contracted and supervised by NGOs at a relatively lower cost than the UN. These individuals will support the LA through capacity enhancement. This process o f contracting-in embeds these skilled individuals within the system thereby creating opportunities for sustained support to LA and communities. 21 13. Implementationschedule. on selectedcounties and selection ofbeneficiaries with the 14. Estimated costs. The estimated cost o f the Component 1 is $3.0 million. It is anticipated that the final composition of the packages can be worked out later. Indicative estimates, based on costing will also be finalized. Component2: StrengtheningCommunitySafety Nets (US$1.5 million) 15. Component 2 will finance immediate responses through public works. This aims at minimizing the negative effects o f food price increase in relation to food consumption on the food insecure groups located in the six counties. Secondly, the programming provides cash or in-kindbysupportingincentive-based or task-based intensivepublic works that aims to address major concerns o f LA around agriculturalproductivity. For instance, key public works through LAwill be usedinrepairs o fseasonalroads--like patching, buildingo fbridges anddrainage, to improve accessibility. Other activities may involve construction o f community storage facilities under the management o f LA to carter for specific administrative areas. The emphasis would be to ensure that these public works promote agricultural productivity efforts in the selected areas. These works will be organizedby the chiefs and LAs and under the supervision o f NPNAAH-I.The GoSS will also involve those NGOs currently implementingpublic works under the MDTF-S in some o f the locations. Overall, the program will enable these food insecure groups to afford quality food through the markets thereby ameliorating the negative 22 impact o f food price increase on consumption levels o f the households. These programs also buildon existing ones by responding to food price increase by: (i) up the coverage to scaling include those that were not necessarily engaged inthe program before; and (ii) also by adapting wages (in case o f public works) or rations (for food distribution) to changes in the costs o f living. 16. Conceptual Issue: the use o f public works in the operation is conceived to: (i) take advantage o f the available seasonal family labor available from the food insecure households and create public employment to mitigate the occurrence o f famine inthese households. The LAs and the designated NGOs will target these households with the view to secure and maintain acceptable levels o f food consumption all through the year; and (ii) employ these food insecure groups to access quality food through markets, which would have food on sale although at very highprices. Public works will adopt both an incentive-based as well as task- based approaches. An incentive-based approach will be effective during those periods when there would be no labor competition between agriculture andthe public works. Payment would be based on capacity o f the households to complete a given assignment. However, the task- based concept will most certainly apply inareas in Western and Central Equatoria where labor demand i s high. It is likely that the repair of the Morobo-Yei rural road will employ a task- based approach. Selected households will be provided specific tasks to complete in order to earn a certain amount o f money or in-kind. 17. Geographic Selection Criteria: The six counties were selected for several reasons in relation to the project. First, three o f them (Panriang, Tonga and Tonj North) are located in food deficit areas, which result from agro-climatic vulnerability. The communities are also ago-pastoralist and agriculture i s practiced by children and women. These three counties are seasonally flooded by rain. Inaddition, these counties have not been targeted under the MDTF projects. However, Morobo, Yambio and Raga are productive areas, selected as key areas for production for distribution. Yambio and Raga are not targeted by the MDTF projects but these locations, like inthe first case, have highpopulations. 18. Beneficiary Selection Criteria: the beneficiaries are classified as food insecure households and /or groups found in the six counties. Food insecure groups in the pastoralist communities include large families o f male especially during dry seasons as men tend to take cattle away to the cattle camps. In the other areas, food insecure households include the older members and large families. The food insecure groups tend to have seasonal labor, which can be used for public works inthe rehabilitation o f rural roads, storage, other public works thereby reducing the risk related to seasonal flooding o f the fields and homestead. Public works will also be used for construction o fpublic assets as seen fit bythe LAs. 19. Implementation o f the Component will be through the NGOs. The implementation schedules proposed are: Categories Activities Resp'ble Time Span Short-term(3-6 months) 1. Short training ofparticipants inpublic works by NGOs Sept. 2008 project staff 2. Procurement o f tools and equipment for public NGOs September works 2008 3. Construction of stores, etc NGOs Starts October Medium-term (6-12 months) 1. Implementationof activities Implementing Dec 2008 to to long-term Agencies Nov 2011 23 Component3: Supportto ProjectImplementationArrangements(US$0.5 million). 20. The component will support (i) SSPSC through the SSTC to implement its fiduciary the and coordination functions. The SSTC already exists and will undertake field trips to validate the technical content o f project's activities. The implementingNGOs will be part o f the SSTC. The component will also finance the Contracts with the different implementing agencies, operating costs, and the establishment o f systems to ensure effective and efficient implementation. The operating costs will include support to the public sector committees to follow-up activities inthe field. The estimated cost o f Component 3 i s US$0.50 million, along the following breakdown: Category % Amount $"OOO" Contracts 50% 250 Consultants 10% 50 I I Goods and Eauinment I 10% I 50 I I I Operating Costs 1 20% 1 100 -~ Others 10% 50 TOTAL 100% 500 24 SOUTHERNSUDANEMERGENCY FOODCRISIS RESPONSEPROJECT ANNEX3: RESULTS FRAMEWORK roj me Increased access to food for 0% o ftargeted farmers 0To informpolicymakers consumptionby food adopting improved onprogress on achieving insecure households living technologies for food outcome indicator; insix ofthe most distressed production inthe targeted counties o f Southern Sudan. areas 0%o ftarget population receiving cash transfers Component1 Supportto - number of food insecure 0To informpolicy makers AmiculturalProductivitv: households inthe project onbenefits accruing Increased levels o f food area with food reserves from interventions available for consumption byparticipating households Component2 - 0number o fpoor households mTo inform policy makers Strengthening inthe project areathat on benefits accruing CommunitvSafetv Nets: participate inpublic works from interventions Increased opportunities for the poor households to access food Component3 -Supportto number o f feedbacks and Accountability of ProiectImplementation follow-up recordedon implementing agencies Arrangements: fiduciary issues andpolitical leaders Responsive project , management 25 Project CYl O-11 Frequency Responsibility Indicators and Reports Targeted farmers I I adopting~-improved technologiesproduction infor food the NA I50,OOO 80,000 Endof project targeted areas Target population Reports receiving cashtransfers NA 8,000 12,000 Annually Intermediate OutcomeIndicators 1 1 1 I I 1 Component1 Numbers o f food insecure households in NA 300 1000 Reports NGOs the project area with Seasonally fromNGOs food reserves IlI Component2 Number o f food insecure households in the project area that 3,000 30,000 Annually participate inpublic works Number of feedbacks and follow-up recorded NA 4 4 Reports of on fiduciary issues the PIUS SSTC 26 SOUTHERNSUDANEMERGENCY FOOD CRISISRESPONSEPROJECT ANNEX4: PROJECTCOSTING Table4.1: Summary of ProjectComponentCostsby Source(US$ `000) Table4.2: Summaryof ComponentCostsby Type ofExpenditures(US$ `000) 27 SOUTHERNSUDANEMERGENCY FOOD CRISISRESPONSEPROJECT ANNEX 5: FINANCIAL MANAGEMENTAND DISBURSEMENTARRANGEMENTS 5.1 Introduction 1. Bank policy requires that the Borrower put in place adequate Financial Management arrangements including budgeting, accounting, internal controls, funds flow, financial reporting and auditing arrangements, These arrangements need to be in place before project implementation begins, and should be maintained duringproject implementation. According to OP 8.00, Emergency operations, as is the case here, are processed under accelerated, consolidated, and simplified procedures and are subject to streamlined ex-ante requirements, including in fiduciary and safeguards areas. 2. The objective o f the financial management arrangements is to ensure that the systems in place are sufficiently robust to permit adequate use of funds in an economical and efficient way and that all transactions are duly accounted, reported and audited. Unfortunately, in Southern Sudan, financial management and institutional systems are weak as shown by various analytica1,and advisory activities undertakeneither by donors or Government o f Southern Sudan. 5.2 FinancialManagementArrangements 3. Basic Principles: The fiduciary accountability systems being put in place will therefore provide assuranceregardinguse o f funds. 4. Institutional arrangements for PFM: In view o f the high risk, weak capacity environment, the overall fiduciary framework being put in place i s outlined below. This is comparable to fiduciary controls established in other post conflict environments and currently in operation in Southern Sudan under the Multi-Donor Trust Fund supported projects. These systems have been working very well andwill be used to manage the project. The framework includes; 0 The Monitoring Agent, (MA) will monitor actual expenditures to ensure that funds are being utilized for the purpose intended. The MA will ensure that fiduciary standards are complied with, andreport on all cases o fnon compliance. The MA is already in placeand has been working on theMDTF supportedprojects A Project Accounting Agent (PAA), will be responsible for ensuring that reliable androbust accounting systems are inplace to ensure proper accounting and reporting o f transactions in accordance with International Accounting Standards. The PAA will take fiduciary responsibility for releases o f funds. A P M is already in place and has been working on the MDTFsupportedprojects A Procurement Agent (PA) has been recruited to ensure procurement is conducted in a transparent and accountable manner, and as per MDTF requirements. The PA i s already in placeand has beenworkingon the MDTF supportedprojects 0 An External Audit Agent (EAA) will be selected through an international competitive recruitment process to provide an independent assessment o f the reliability of the financial statements produced for the Project. The EAA will undertake audits as per International Standards on Auditing. The E Mis alreadyinplace andhasbeenworking on the MDTF supportedprojects 28 T E n rA d X Y -36) a cl E d E 0 Y x X X m 0 X 5. Risk assessment: Giventhe weak institutional and governance structure andthe capacity the initialrisk assessment was high.However, after risk mitigation measures the final project risk i s assessedas Modest. 5.3 StrengthsandWeaknesses 6. Strenaths:The transition to the formation o f a Government of Southern Sudan (GoSS) has been relatively smooth. New institutional arrangements are being formalized inan organized and efficient manner. The availability of substantial quantities o f oil resources is a huge advantage if they are used inan economically efficient, transparent and accountable manner. A particular area o f strength is the willingness o f GoSS to interact effectively with the international community at this formative stage so that lessons o f good practices fiom Afiica and elsewhere can be adapted quickly to the situation in South Sudan. The contracting o f reputable international accounting andmonitoring agencies with experience o fthe Bank's financial procedures is a strength. 7. Weaknesses: Institutional and governance capacity is weak, with basic PFM systems and procedures still to be established. The lack o f adequate HR capacity is critical as can be expected in a post conflict situation. There is no familiarity with Bank procedures or guidelines. The banking system is virtually non existent and is only beginning to be established, increasing the challenge o f establishing a payment mechanism or entering into commercial banking transactions. Thus most payments and funds are disbursed at the centre in Juba with limited decentralised payment taking place., 5.4 AccountingPoliciesandProcedures 8. The following describes the basis o f accounting and procedures to be followed under the project: Basis of Accounting: MDTF resources will be accounted for on a cash basis. This will be augmented with appropriate records andprocedures to track commitments and to safeguard assets. Currency: Accounting records will be maintained in U S Dollar. Local currency based transactions will be translated at the exchange rate ruling at the date the expenditure is incurred. The Chart of Accounts:The PAA will use a system of chart o f accounts consistent with the GoSS chart o f accounts and similar to the other on going MDTF funded projects. This will facilitate the preparation o f relevant monthly, quarterly and annual financial Statements, including information on the following: total Project expenditures total financial contribution from each financier total expenditure on each Project component/activity, and analysis of that total expenditure into civil works, various categories o f goods, training, consultants and other procurement anddisbursement categories. 9. Fixed Assets Register: The PAA will prepare and regularly update a Fixed Assets Register, showing the asset identity reference, cost, date of purchase and location o f the assets. The register should also show the estimated economic useful life o f the assets and, where possible, the estimated replacement cost at the end of the economic life andresidual value ifany. 31 The register must be up dated regularly with new entries, movements between locations and disposals as they occur. 10. Contracts Register: A Contracts Register will also be maintained for all contracts with contractors, consultants and suppliers. The PAA will prepare Contract Status Reports quarterly. Control procedures over fixed assets and contracts with consultants and suppliers/vendors will be documented inthe PIM. 11. Annualfinancial Statementswill beprepared inaccordance with U S . All accountingand control procedures will be adequately documented. 5.5. PlanningandBudgeting 12. Planning and budgeting under the project will be a simple cash budget. The Ministry will submit its work plans and budget for review by the Bank after internal discussion and approval by the project's approval authority. The preparation will follow the procedures outlined in the PIMto ensure that other activities to be financedby GoSS are effectively coordinated. 5.6. FinancialReporting 13. Detailed financial management procedures and internal control environment will be documented inthe P I M for the project. Simplified monthly, quarterly and annual reports will be prepared for the purpose o f monitoring Project implementation. The reports will be submitted to the PMA, GoSS, MoFEP and the World Bank. Monthly reports are required to be submitted 30 days after the end o f the month to which they relate; and quarterly reports will be submitted 45 days after the end o f the quarter to which they relate. The detailed formats and contents o f the simplified financial reports will also be fully documented inthe PIM. Monthly: On a monthly basis, the PAA will prepare and submit the following reports to GoSS, PMA andthe World Bank: o Bank Reconciliation Statementfor each bank account; o Monthly Statement of cashposition for Project funds from all sources, takinginto consideration significant reconciling items; o Monthly Statement of Expenditure(where applicable) classified by Project components, disbursement categories, and comparisonwith budgets, or a variance analysis; and o Statementof Sources and Uses of funds (by Major Category/ Activity); Ouarterlv: The following Reports will be prepared by the PAA on a quarterly basis and submitted to GoSS, PMA and the World Bank: o Financial Reports which will represent the Interim Unaudited Financial Reports (IFRs) which include a Statement showing for the quarterly period and cumulatively (Project life or year to date) inflows by sources and outflows by main expenditure classifications; beginning and ending cash balances o f the Project; and supporting schedules comparing actual and planned expenditures. The reports will also include cash forecast for the next two quarters. This will also form the basis o f any request for funds from the World Bank. 32 0 Annually: The annual Project financial Statements, which will be prepared by the PA4 will include the following: o Statement o f Sources andUses o f funds (bymajor Category/ Activity); ; o Statements reconciling the balances on the various bank accounts (including the Project Account) to the bank balances shown on the Statement o f Sources and Uses o f funds. These reports are the cumulative annual reports o f the quarterly financial reports; o The Accounting Policies Adopted and Explanatory Notes. The explanatory notes should be presented in a systematic manner with items on the Statement o f Sources and Uses o f Funds being cross referenced to any related information in the notes. Examples o f this information include a summary listing o f individual withdrawal applications; and o A Management Assertion that Bank funds have been expended in accordance with the intended purposes as specified in the relevant World Bank legal agreement. 14. Indicative formats for the reports are outlined in the Bank's: (a) Financial Monitoring Reports: Guidelines to Borrowers, (b) the format will be agreed at negotiation and fully documented inthe PIM. 5.7. Flow of FundsandBankingArrangements 15. The project will find activities covering civil works, goods and equipments and consultancies. Itwill also fund community sub-grants and operatingcosts. Under the sub-grant, it i s will use already existing procedure approvedby the Bank. To facilitate implementation o fthis project one bank account, the Designated Account (DA), to be denominated inUS dollars will be opened to receive the Global FoodResponse Project (GFRP) funds. The bank account will be opened ina reputedand stable commercial bank acceptable to IDA. The size o f the initial deposits o f funds into the designated account will be determined on the basis o f an estimate o f the anticipated expenditures for a period o f six months. The P A A / GoSS will be responsible for managing the designated account. MAFwill beresponsible for initiating, incurring and authorizing expenditures under the Project inaccordance with procedures laid down for this project and initiate payment process with all the required supporting documentation on the basis o f which PAA/GoSS will effect the payment to the providers o f services. The accounts will be replenished on a quarterly basis to ensure the Project has sufficient cash flow for meeting eligible Project expenditures ina timely manner. For largevalue payments o f amounts above the minimumdirect payment thresholdto a singlepayee, the MAFIGoSS incollaborationwiththe PAAmay request the World Bank, inthe case o fthe GFRP financed activities, to make direct payments to the service providers from the GFRP (Project Grant) account. 16. Technically, GoSS andthe PAA may also wish to use Special Commitment (SC) by opening irrevocable Letters o f Credit when it is needed to pay thirdparties, however, since the GFRPactivities are for services at State level, it is not expected that this methodwill beused. The accounting for these payments would need to be reflected inthe accounting records (accounting books) o f the Project that will be maintained by the PAA/GoSS on behalfo fMAF. 33 Flow of FundsDiagram Direct payments for large Contracts Account MAF-at HQ Implementing agents or States 17. The MA would monitor and report on the utilization o f the entire Project funds, including the compliancewith fiduciary standards complied with andthe reliability o fthe FMsystems. 18. The DA will be reconciled with bank statements on a monthly basis by the PAA and reviewed by designated officials. Identified differences will be expeditious1 investigated and resolved at the earliest time possible, and in any event not later than the 20ti! for the following month. Any unexplained transaction or suspected fraudulent transactions must be reported to the Project Operational Coordinator (POC) and GoSS at the earliest opportunity. Bank reconciliation statements will form part o f the required documentation supporting the interim financial reports, substantiating expenditure eligibility. Details o f the appropriate procedures and controls will be documented inthe PIM to be compiled and issued by the PAA. This manual will be used by the PAA and GoSS for Project implementation, to ensure that disbursements and fimd flows are carried out inan efficient and effective manner. The MA will also use the PIM and other project documents as reference materials inits role o f monitoring the implementation o fthe Project. 19. NGOs and other implementation agents and partners will be involved in the implementation o f the project. They will also receive funds for implementation. To ensure that, their financial management systems are satisfactory and meet the Bank's fiduciary requirements, their FMsystems will be assessedprior to any funds being transferred to them. To also minimise any Wher risks that may occur, funds to NGOs and implementingpartners will be released in tranches and against specified benchmarks including deliverables and financial reports. 34 20. Detail banking arrangements, including control procedures over the disbursements to NGOs and other implementing partners all bank transactions (e.g. cheque signatories, transfers, etc.); will be documented inthe guidelines andmanual for this component. The main component will follow already agreed procedures being used under the MDTF which are already documented. 5.8. Audit Arrangements 21. External Audit: The Project's financial statements will be audited in accordance with International Standards on Auditing (ISA) by independent auditors. The audit reports and financial reports will be submitted to the Bank within 6 months o f the end o f the fiscal year. In accordance with the audit policy, the auditor may issue a single comprehensive report indicating his opinion on (i) the financial statements expressed intheir succinct report, the auditors will be asked to review in depth all expenditures and internal controls procedures used for their preparation during the period under review, in order to express a separate opinion on them; (ii) the eligibility andpropriety o f expenditures claimed using the reports based procedures; and (iii) the administration o f the cash assets o f the Project, i.e. bank accounts. Inaddition the auditor will be expected to prepare Management Letters giving observations and comments, and providing recommendations for improvements in accounting records, systems, controls, risk prone areas, fraud risk and compliance with financial covenants inthe GFRP Grant agreement. 22. It is the responsibility o f GoSS to appoint independent auditors acceptable to the Bank. GoSS is also responsible for: (i) preparingor causethe preparationo f accurate andtimely Project financial statements in accordance with IAS; (ii) presenting the Project financial statements to the auditor annually, and (ii)submitting to the Bank the audited Project financial statements together with management letter and response thereto. Currently the MDTF framework has in place external auditors, the EAA, will be responsible for auditing this project. The auditors were selected on competitive basis and their TOR were reviewed and cleared by the Bank in the selection process. 5.9. DisbursementArrangements 23. Disbursement method: The Project will report on eligible expenditures on the basis o f quarterly interim financial reports. To ensure that the Project is provided with adequate cash flow, the P M G o S S will prepare and submit the quarterly interim financial reports, including six month cash flow statements. As such, the DesignatedAccount will retain approximately one quarter cash cushion at all times. For large value payments above the balance in the DA,to a singlepayee, the MAF/GoSS incollaboration with the PAA may request the World Bank, inthe case o f the GFRP financed activities to make direct payments to the service providers from the GFRP (Project Grant) account. 24. Inroutine reporting of Project implementationprogress, IFRwill be used for reporting purposes. Such reports will be submitted to IDA within 45 days after the end o f each reporting period, which is quarterly for the purpose o f this Project. Details will be contained inthe PIM to guide the process. 25. Proper skills o f handling withdrawal applications o f various types will be used by the PAA and GoSS to ensure smooth disbursement for effective project implementation. Given the low capacity situation in SS, GoSS staff who need and other agencies will be trained to ensure that local capacity for effective disbursement i s built over time. 35 26. The grant will be allocated according to the expenditure categories as follows: Allocationof Grant Proceedsto ExpenditureCategories ICategory - - Amount of Grant I YOof TotalExpenditure to be Allocated inUS$ fundedbythe Grant Works, goods,consultants' services, trainingand 100% operatingcosts relatingto 4,000,000 the Project Community Grants 1,000,000 100% Total 5,000,000 5.10. Actions andConditions 27. The following action is to be implementedas specified. S/N ACTION By Whom By When 1 Guidelineandmanuals for the Community Before Disbursement for Grants, including the financial management and PAA category funds flow procedures. 5. 11. SupervisionPlan 28. As this is a high risk Project, it will be supervised on a three-monthly basis by a Bank accredited FMS. Supervision activities will include review o f IFRs and other under lying records, flow o f funds arrangements and how effective they are working, review of annual audited financial statements and management letter as well as timely follow-up o f issues arising, annual review, participation inProject supervision missions as appropriate, and updating the FM rating inthe Implementation Status Report andPRIMA. 5.11. Conclusion 29. The financial management assessment o f this project concludes that although the initial assessedriskwas highthe mitigation measures and arrangement put inplace ensures that the risk is reduced to modest and financial management arrangements for this project meets the minimumFMrequirements for the Bankas definedbythe Bankspolicy. 36 SOUTHERNSUDANEMERGENCY FOODCRISISRESPONSEPROJECT ANNEX6: PROCUREMENT ARRANGEMENTS A. General 1. For the FoodPrice Crisis Response Trust Fund(under the GFRP), procurement o f Goods ,Works andConsultants Services wouldbecarriedout inaccordance with(i) WorldBank'sthe "Guidelines: Procurement under IBRD Loans and IDA Credits" dated M a y 2004, revised in October 2006; (ii)"Guidelines: Selection and Employment o f Consultants by World Bank Borrowers" dated May 2004, revised in October 2006; (iii) Requirements o f OP 8.00 for Rapid Response to Crisis and Emergencies, and (iv) the provisions stipulated in the Grant Financing Agreements. The various items under different expenditure categories to be financed are described below. For each contract to be financed by the Grant, the different procurefnent methods, estimated costs, prior review requirements, and schedule are as agreed between the GoSS and the Bank in the Procurement Plan. The Procurement Plan will be updated at least annually or as required to reflect the actual project implementation needs and improvements in institutional capacity. 2. The Works: The Works envisaged to beprocured underthe project will include critically needed small infrastructure at village levels (storage facilities, wells, community roads to re- establish access between production areas and markets, etc.) directly related to alleviating the food crisis. 3. The Goods: The Goods envisaged to be procured under the project would include (i) animal traction equipments, hand tools, materials, generators, etc under the employment generation strategies that would lead to provision o f services that have public value, (ii) seeds, tools, spraying equipment, protective clothing, harvesting equipment, simple storage facilities, etc. at the management level, it may include 3 or so vehicles, computers, office equipment etc. 4. The Consultants Services:The Consultants Services envisaged would include NGOs to manage the implementation processes on the ground, plus the technical assistance and training services to support the Local Governments and Community Groups. TAs will also be required at the SSTC level to oversee specific technical areas like roads construction, safety nets programming andprocurement. The TA will involve individual consultants and firms. RapidResponseProcedures 4. Inaccordance with the new Framework for Rapid Response to Crisis and Emergencies captured inOP 8.00, the following procurement procedures are envisaged: For Works: Rapid procurement methods will be used. For the majority o f the small works, procurement will be by direct contracting or shopping, as far as possible using established civil works contractors with a good track record. Where such arrangements are not practicable Force Account operations may be supported (but only through the provision o f materials). Alternatively and for any larger contracts, International Competitive Bidding (ICB), Limited International Bid (LIB) or National Competitive Bidding (NCB) procedures will be used, with accelerated bid times (of not less than 21 days) and streamlinedprocedures. Bank provisions on 37 the use o f bid-securing declarations andthe elimination or waiving o f bidbond or, bid securities for small contracts are also envisaged. For Goods: Rapid procurement methods will be used. For the majority o f the small scale procurement, direct contracting or shopping procedures will be used by the PIUPCU and the implementing agencies, consistent with paragraph 3.6 o f the Procurement Guidelines. Alternatively and for any larger contracts, ICB, LIB or N C B procedures will be used, with accelerated bidtimes (of not less than 21 days) and streamlinedprocedures. Bank provisions on the use o f bid securing declarations and the elimination or waiving of bid bond or bid securities for small contracts is also envisaged. For Consulting Services: Rapid procurement methods will be used. The NGOs for the management and implementation services will be procured by sole source procedures. The other Consulting Services to be provided by firms or organizations will be procured through sole source selection (where justified) or streamlined QCBS procedures. However, firms already implementing MDTFprojects would not undergo further scrutiny instead their present Contracts may be amended to include an expanded scope o f services. In addition, firms working in the area with proven track records in similar assignments may be the most suitable candidates for consideration - in which case QBS procurement procedures may be adopted; and Consultants' Qualification Selection (CQS) may also be used. The services envisaged involve technical assistance to support MAF in managing the Project and to implement key components-- engineering services for works, and development o f support services through community-b,ased activities, survey and design for constructionwork by engineering firms. Consultant services will include procurement o f private firms and public institutions (such as research institutions, specialized private firms), Community Based Organizations, NGOs and UN agencies which possess specific experience relevant for Project purposes. Community participation in Procurement will be used as appropriate, in accordance with paragraph 3.17 o f the Procurement Guidelines. Simple methods o fprocurement are envisaged as already specified inthe "Sub-Grant Operations Manual" o f the Agriculture andForestry Support Project already approved by the Bank and forming part o f the existing NPA contract with the MAF,whichwill be adapted for thisprojectbyNPAunder its responsibilitiesonthis project. Direct Contracting will be used in cases consistent with paragraph 3.6 o f the Procurement Guidelines. Quality-and Cost-Based Selection (QCBS): Except for those INGOs that will be sole sourced, (QCBS) in accordance with Section I1 o f the Consultants Guidelines will be used for all major contracts under the Project. Expressions o f Interest will be sought for all contracts expected to cost more than $200 000, in accordance with para. 2.5 o f the Consultant Guidelines, through advertising inUNDBonline, indgMarket, and innational and regional newspapers or magazines. For assignments for which regional firm or organizations may have a specialized expertise, this experience will be included in the evaluation criteria o f the firms that express an interest in competing for the assignment. For such assignments prior experience in similar conditions as those prevailing in the Southern Sudan would be required as a criterion o f qualification. In cases where a Conflict o f Interest may arise or the Eligibility o f a firm or organization to participate in 38 the selection for an assignment is in doubt, according to the provisions o f paragraphs 1.9(c) and 1.11 o f the Consultant Guidelines, the prior approval o f the Bank will be sought. 0 Least CostSelection (LCS) may be used for assignments o f a standard androutine nature for auditing and engineering services up to a maximumo f US$200,000 per contract. 0 Consultants Qualifications Selection (CQS) may be used for assignments estimated to cost less than US$lOO,OOO and for which the need for proposing and evaluating proposals would not bejustified. 0 Single-Source Selection may be used for contracts on an exceptional basis where justified for the selection o f consulting firms and individuals, in accordance with paragraphs 3.8 to 3.11 o f the Consultant Guidelines. The consultants to be chosen through Single-Source Selection will be identified in the procurement plan, as much a possible. The following sole source contracts are currently envisaged: (i) to lead the implementation o f technical assistance in the rehabilitation o f some selected rural infrastructure: the rural roads, construction o f storage facilities and market infrastructure in all the selected counties; (ii) lead the implementation of technical assistance in to social safety nets program, including information and education, covering the selected counties; and (iii)to lead the implementation o f the community grants that would enhance agricultural productivity, targeting vulnerable households, through Sub-Grants for innovative pilot Micro-Projects inall selected counties. The sole source selection will bejustified on the basis that the INGOs selected will best meet the requirement to have established expert coverage in all o f the five counties, which i s paramount considering the need to be close to the communities. Inaddition, the scope o f their experience will be required to show that they have experience o f exceptional worth for the assignment -- makingthem uniquely qualified to carry out these services. And in a number o f cases, where the INGOs are already established, the current project services will in fact be a continuation o f or scaling up o f what they are already doing. 0 Selection of Individual Consultants maybe used for specific TA assignments. Selection will be inaccordance with paragraphs 5.1 to 5.3 o fthe Consultant Guidelines. A standard form of contract for individual consultants will be used, with prior approval o f the World Bank. 6. Training and Workshops: Training and Workshops are envisaged as part o f the project, aimed at community participation, capacity building and sustainability. At the management levels (PIU/SSTC/SSPSC), this will include monitoring and evaluation courses, which will be based on invitations and identified needs. Field exposures would be another area and all would be determined based on annual evaluation of the participating members. At the project level, this will be funded directly as part o f the service contract. 7. OperatingCosts: The project will finance project implementation-related operating costs, where the term "Operating Costs" means the incremental expenses incurred on account o f Project implementation and supervision, including for office support, office supplies, office rent, 39 communication expenses, maintenance of vehicles, and transportation expenses, but excluding salariesofofficials ofthe Recipient's civil service. 8. ProcurementPrior Review: The following contracts shall besubject to Prior Reviewby the World Bank, except as the World Bank shall otherwise determine by notice to the Recipient: (a) each contract for goods estimated to cost the equivalent of US$lOO,OOO or more and each contract for works estimated to cost the equivalent of US$300,000 or more; (b) the first contract for goods and the first contract for works under NCB; (c) all contracts awarded under Direct Contracting with contract values above US$5,000 for goods and works; (d) the first contract for both works and goods by shopping; (e) all contracts for consulting services with firms estimated to cost the equivalent o f US$lOO,OOO or more; (0 the first CQ contract o f US$lOO,OOO max with firms; (g) all contracts for individual consultants estimatedto cost the equivalent o f US$lOO,OOO or more; and (h) all Single Source Selection o f consultant. Inaddition, TORSfor the contracts with individual consultants below US$lOO,OOO shall be cleared by the Bank.All details on prior review, together with the procurement methods, requirementsare indicated inTable Bbelow. 9. ProcurementPostReview. Post-review of procurement activities will be carried out by independent consultants as part o f the proposed intensified supervision missions, as explained inparagraph E5. 10. Procurement Plan: A detailed twelve-month procurement plan for project implementation will be prepared by each implementation agency to reflect project implementation plans, for PIU, MAF and IDA clearance. These procurement plans will indicate for each activity/contract, the estimated cost, the applicable procurement method(s) to be applied, the prior review requirements, and the time line for the keyprocurement steps and Bank no objections. 11. Technical and Procurement Audits: Not later than two months after the end o f each year, the implementing agencies will submit to MAF and the Bank a technical and procurement audit report prepared by independent individuals/firms selected in accordance with the guidelines for selection o f consultants; and based on Terms o f References approved by the Bank and incorporated in the project implementation manual. The audits would, on a selected representative sample, (a) verify that the procurement and contracting procedures and processes followed for the projects were in accordance with the Financing Agreement; (b) verify technical compliance, physical completion and price competitiveness o f each contract; (c) review and comment on contract administration and management issues as dealt with by participating agencies; (d) review capacity o f participating agencies in handling procurement efficiently; and (e) identify improvements in the procurement process inthe light o f any identified deficiencies.. 12. Implementation Status Reports: The Implementation Agencies will, every quarter, submit Implementation Status Reports as part of the overall ISR to MAF, with a copy to the Bank. These reports will report on progress-v-procurement plan, the financial, payment and physical status of every contract and any procurement or management issues. The reports will constitute the basis for the Bank's oversight and the focus of supervision visits. The format and content of the ISRwill be stipulated inthe Terms of Referencesofthe ImplementingAgencies. 40 13. Publication of Contract Awards and Debriefing: The results o f the bidding process will be published for all ICB and NCB for goods and works, and also for consultant contracts estimated at US$200,000 and above (inaccordance with paragraphs 2.60 and2.65, and 3.4 o f the World Bank's "Guidelines: Procurement under IBRD Loans and IDA Credits" dated May 2004 and revised in October 2006; and paragraphs 2.28 and 2.29 o f the "Guidelines: Selection and Employment o f Consultants by World Bank Borrowers" dated M a y 2004 and revised inOctober 2006). 14. Fraud and Corruption: All procuring as well as bidders and service providers, i.e. suppliers, contractors, consultants and service providers shall observe the highest standard o f ethics during the procurement and execution o f contracts financed under the project in accordance with paragraphs 1.14 o f the Procurement Guidelines and paragraphs 1.22 o f the Consultants Guidelines. 15. ProcurementRisks: The overall procurement risks are rated HIGH, due to the need to establish a PlU (to counter MAFcapacity constraints) andthe need to procure all inputs andthen design, build, train and support without preparation, in areas o f Southern Sudan which suffer from extreme geographical and logistical isolation and communication difficulties. However, to mitigate against the risks, 3 International NGOs (which are already established in the project regions andwho are carrying out similar services) are to be contracted to manage and implement the project activities, subject to Bank Rapid Response procurement procedures. Inkeeping with the Rapid Response directives a highlevel o f Bank supervision is planned, at 4 month,intervals; at which time a representative sample o f contracts awarded subject to post review will be subject to procurement andtechnical audit. 41 I Attachment 1-SimDlifiedProcurementPlan I Bank's approvalDateof the procurementPlan [Original: July 31,2008; Revision 1: Sept 22, 20081 Dateof GeneralProcurementNotice:after approval ofthe Board Periodcoveredby this procurementplan: 12months, to beupdatedevery 6 months 6.1 ProcurementMethodsandPrior Review Thresholds Unless otherwise agreedto with the Bank andor specified inthe procurement plan, the following thresholds for the estimated contact values for the procurement methods and for prior review by the Bankwill apply: TableA: ProcurementMethodsand Prior Review Thresholds Expenditure ContractValue ProcurementMethods ContractsSubjectto Category ThresholdsUS$ Prior Review All values Direct Contracting Above US$5,000 All Values Community none Participation Organizations, (international shortlist) 100,000 - 200,000 QCBS/LCS/FBS/QBS All Contracts (national shortlist) I Below 100.000 I cos I First Contract I All Values Single Source & TORs All Contracts Individual 100,000 andabove Individual Consultants All Contracts Consultants Below 100,000 Individual Consultants TOR clearance All Values Single Source & TORs All Contracts 42 6.2 Works, Goods and Services 1. Proposed Procedures for sub-grant activities (as per paragraph. 3.16 of the Guidelines: Refer to the Sudan Agriculture & Forestry Development Project (SAFDP) Sub-project implementation document approvedby the Bank 2 A ProjectOperationaYProcurementManualsatisfactory to the World bank will be prepared within 60 days of effectiveness. The "Sub-Grant Operations Manual" of the Agriculture and Forestry Support Project already approved by the Bank and forming part of the existing NPA contract with the MAF, will be adapted for this project by NPA under its responsibilities on this new project. 3 Any Other SpecialProcurementArrangements: All the Works andthe vast majority o f the Goods are to be procured through 3 selectedmanagement and implementation NGOs. The individual contracts for the Works and Goods underNGO managementhave yet to be identified. Therefore, they are presentedas typical line items below. As described earlier, RapidResponse methods ofprocurement andbiddingdocuments are to be adopted, using schedules ofrates (with day works) contracts for the works andoff-the-shelf goods items as far as practicable. 4 Works andGoods ProcurementPackageswith MethodsandTime Schedule 1 1 2 3 1 4 5 6 7 Ref Procurement . cost Selection Review Expected Comments Package Estimate Method byBank First No. US$m (Prior I Contracts Post) NGO Procured tbd ICB or LIB/ Prior / 2 months after Multiplesmall contracts. Civil Works NCB/ Post*l/ effectiveness *1/ FirstContract subject Shopping Post*1 to PriorReview Direct Prior Contracting Community Post - Participation 2 NGO Procured tbd ICB or LIB/ Prior/ 2 months after *1-NCB prior review Goods NCBI Post*l/ effectiveness requiredof 1'' Contract; Shopping Post/ *2- Direct Contracting Direct Prior*2/ Prior review required Contracting aboveUS$5,000 Community Post - Participation 3 PCU/MAF 0.15 NCBIShopping Post/ Post/ 3 months after Multiplesmall contracts Office Direct Prior*2/ effectiveness *2- Direct Contracting equipment & Contracting Prior review required vehicles - above US$5.000 4 PCU Operating 0.15 NCB/ Shopping Post/Post/ 3 months after Multiplesmall contracts costs Direct Prior*2 effectiveness "2- Direct Contracting Contracting Priorreview required above US$5.000 43 6.3 Selectionof Consultants 1. Short list of entirely national consultants: Short list o f consultants for services, estimated to cost less than US$50,000 equivalent per contract, may be comprised entirely o f national consultants in accordance with the provisions o f paragraph 2.7 o f the Consultant Guidelines. 2. Any Other Special SelectionArrangements: Selection o f three NGOs based on Single Source Selectionwithjustification 3. ConsultancyAssignments with SelectionMethodsandTime Schedule 1 2 3 4 5 6 7 cost Expected Ref Contract Estimate Procurment Review Contract Comments No. (Description) US$ Method by Bank Award million 1 Project Management & 1.OO sss Prior Oct. 2008 Implementation o fnon- infrastructureactivities by AAH-I 2 Management & 1.50 sss Prior Oct. 2008 Implementation o fnon- infrastructureactivities, byNPA 3 Management & 1S O sss Prior Oct. 2008 Implementation of infrastructureactivities, Consultant to prepare 0.06 Individual Post 3 months Project Operation after Manual effectiveness Financial Management 0.38 Individual Prior 3 months 1 1 Specialist after effectiveness 6 Procurement Specialist 0.38 Individual Prior 3 months after effectiveness 7 IndependentTechnical 0.10 CQS Prior 12months andProcurement Audit after Services effectiveness 44 SOUTHERNSUDANEMERGENCY FOODCRISISRESPONSEPROJECT ANNEX 7: IMPLEMENTATIONAND MONITORING ARRANGEMENTS ImplementationArrangements 1. Implementation capacity in Southern Sudan is extremely limited, with very few public entities possessing sufficient capacity to manage World Bank resources. Other public agencies manage implementation o f projects, but require significant levels of external technical assistance inorder to accomplish this. Therefore, implementation arrangements for the project components have taken this constraint into account, while also recognizing the imperative o f rapid mobilization. It should be noted that, while the emergency response to food prices crisis in Southern Sudan embodies an urgent and immediate response, implementation arrangements will be structured to establish a foundation for longer-term development interventions to the maximumextent possible. 2. Based on institutional consultations undertaken within the Bank (AFTPC, AFTFM, LEGAF, AFTQK), implementation arrangements will mirror those being used under the MDTF projects, namely the Support to Agriculture and Forestry Development Project (SAFDP) as well as the Livestock and Fisheries Development Project (LFDP). Overall fiduciary responsibility for the project will be managed by the Project Coordination Unit o f the Ministry o f Agriculture and Forestry, which reports to the Minister o f Agriculture and Forestry. This Government Unit i s responsible for the coordination o f all projects and programs under the ministry. It i s constituted by a small secretariat and a Project Operation Coordinator (POC), a specialist with direct access and reporting line to the Minister o f Agriculture and Forestry. It also has operational link with the Undersecretaries of the said ministry. 3. The POC is appointed by the Minister and in addition, he is adviser to the Minister. H e has a technical counterpart, who is an expatriate with experience and training in project management and project administration. The decision to entrust the execution o f the Food Response Project to the MAF-PCU is based on the following grounds: (i) ensure consistencies andharmonizationwith other projects; (ii) from fiduciary oversight ofthe GoSS through benefit the PAA andPA as well as the capacities that the different projectsbringinthe ministry, e.g., the International Fundfor Agricultural Development (IFAD), MDTF and the European Commission (EC); (iii) optionensuresthatthereiscapacityembeddedinGoSSservices, andinthis this context, all staff that will take part inthe project execution are civil servants, and only facilitated by highly skilled TAs; (iv) the MAF-PCU performance in the management o f the LICUS activities is currently being built inpreparation for the SAFDP. 4. The project will be placed under the overall guidance o f a Project Steering Committee. This is a policy guidance body comprising ministers o f the five ministries categorized as the NRRD-SWG. Its technical secretariat is the Project Technical Committee (PTC), chaired by the Undersecretary o f MAF and include representatives o f the ministries under the NRRD-SWG, viz: Ministry o f Cooperatives and Rural Development, Ministry o f Environment, Wildlife and Tourism, Ministry o f Gender and Social Affairs, Ministry o f Finance and Economic Planning, Ministryo fAnimal Resources andFisheries, andthe Representatives o fparticipating NGOs and State Governments. Specifically for this project, the PTC will recruit 3 TAs as core secretariat for the implementation o f the project. These 3 TAs, together with the focal point, DGs and those 45 responsible for the different components (DG for Roads and Transport and DG for Agriculture) form the project implementation bodies o f the GoSS. They will be responsible for the preparation and following up of the annual work-plan and budgets. The PTC exists and will be expanded to include the Ministryo f Transport andWorks. 5. Field implementation o f the project is to be contracted by the GoSS to the NGOs. The NPA andother NGOs are already active inthe country and insome cases already implementing MDTF activities. In particular, the NPA is already implementing the SAFDP. The Project Technical Committee with the help o f the PA will develop the terms o f reference for the implementing NGOs, participate intheir selection process, andprovide overall supervisionto the components via bi-annual field visits andreview o f Sub-Projects' quarterly reports. MonitoringArrangements 6. Under the MDTF, a Monitoring Agency exists and is responsible for the day to day monitoring o f the performance o f the projects. This arrangement will be used by the project. As requiredunder OP/BP8.00, the shift from ex-ante to ex-post risk mitigation and control measures requires task teams to intensify their supervision efforts through frequent missions and ex-post reviews. The project will have a minimum o f four comprehensive supervision missions per year that will cover all aspects o f implementation. TAs on rural road construction, procurement, and finance administration will be recruited and enhance the role o f the SSTC. Importantly, the SSTC and the Project Unit in MAF will make spot field visits to the project prior to the World Bank Supervision Team's plannedvisits. They will also institute half yearly technical audit for infiastructural projects to be carried by consultants. Reports o f this nature would support dialog at the Steering Committee meeting and recommendations. In addition to the intensified supervision, the project will be subject to financial, procurement andtechnical audits. 7. Data Collection and Reporting: Overall responsibility for monitoring and evaluation (M&E) o f Project components and activities, as described in the results framework (Annex 2), will lie with the implementing agencies. They will be responsible for data collection, monitoring and reporting to the SSTC. The SSTC will conduct external monitoring of the project based on the reporting received. The Women Community Based Organizations have indicated interest in implementing social accountability in view o f the fact that women will be targeted in the implementation ofthe project. 46 S O U T H E R N SUDANEMERGENCY FOOD CRISIS RESPONSE PROJECT ANNEX8: PROJECTPREPARATIONAND APPRAISAL TEAMMEMBERS Project Processing Schedule PlannedEffectiveness October 15,2008 MTR Octoberl5, 2009 Closing Date September 31,2011 Bankstaff and consultants who worked on project preparation Name Title Unit JohnJ. Oloya Task Team Leader AFTAR Laurence Clarke Country Manager AFCE3 Charles Yoere RuralDevelopment Specialist AFTAR KarenBrooks Sector Manager AFTAR c Y Christine Cornelius Program Coordinator AFTAR Jeeva Perumalpillaies-ESSEX Sector Leader AFTAR R. Gregory Toulmin Country Coordinator AFCE3 Yasim Tayabb Sr. Social Development Specialist AFTCS DavidRudge Sr. Procurement SDecialist AFTPC Y PascalT e p a Sr. Procurement Specialist AFTPC Evarist Baimu Counsel LEGAF David C. Freese Sr. Finance Officer LOAFC FredYankey Sr. Fin. Management Spec. AFTFM Sossena Tassew Office Manager AFTAR Almaz Teklesenbet Program Assistant AFTAR 47 SOUTHERNSUDANEMERGENCY FOODCRISISRESPONSEPROJECT ANNEX 9: SUDANCOUNTRYAT A GLANCE 09/24/08 sub- mvbi &ham middle sW?m AM0 1- 38% EM1 3.437 2.m 24242 35910 22 2.4 1.o 43 38 42 367 762 6ilbs p50 952 41. w a67 1 .m 1.070 1a2 6 2 87 7 7 9 7 &$ 60 72 6.3 50 98 81 w 41 38 27 25 72 88 83 62 50 15 r1 98 112 E l ea 108 70 68 88 35 31 54 1W low PWO 4w ' 615 813 220 2m 60 143 s 739 J8 a& 14 2% 50 37 6 218 8 1 7 1 19 I t 31 11 7 58 I.4sL I 25 4 852 57 76 226 (w2 8 7 7 0 06 0 0 28 2 0 95 100 rm 185 2sB 333 306 7.817 1ZiDS 12,388 466228 p:d e ) 2 8 40.6 41 7 283 1 8 I 4 I 5 14 1 i53 21 5 mr 3 0 8 5 10.9 7 5 8 7 e,6 e 1 48 75 3 6 530 442 388 41 a as 1 9 103 81 e l w J l 765 (L48 23 2 6 so 180 5 a 76 14 8 -0.5 A5 a i 14 ? 112 18.3 212 .1 8 220 131 10b 4 a t6 9 201 6 3 118 f30 23 1 7 1 I7 7 23 8 .? 2 8 4 I Z O 79 hQ I O 1 I!P 48 Sudan ~ 2100 2007 1.m 8,902 1,834 ?,R2 -297 -1.754 641 1,156 -1,016 -6.710 $ 2 "124 136 554 103 so 19.8 82 8.7 10.9 -0.7 spoo -3.1 38.9 1 3.8 16,411 19,iSS $8 238 - 2&?- 29,7 1327 52.6 126 4.8 134.4 w2 3,534 0.1T 0 -35 3.4 414 awo a2 1 0 1,167 0 4 4 Q 0 0 -- 49 .. 0.0 0.0 0.1 18.4 0.0 0.0 a.o 0.0 8.9 0.3 $ L Z I Mu*k. immvrlu(lon I# of l y w r dds) :I :I r D 2 50 MAP SECTION 25°E Red 30°E WHITE NILE SINNAR 35°E NORTHERN ARAB REPUBLIC LIBYA OF EGYPT Nyala KORDOFAN SUDAN Sea Al Fula SOUTHERN SUDAN Ed Damazin EMERGENCY FOOD CRISIS SUDAN CHAD ERITREA KHARTOUM BLUE Muglad RESPONSE PROJECT Area of Main Map NILE ETHIOPIA CENTRAL AFRICAN REPUBLIC DEM. REP. 10°N Bahr el Paloich OF CONGO UGANDA KENYA 'Arab UPPER NILE 10°N TONGA SOUTHERN Abyei COUNTY Malakal DARFUR MAYOM NORTHERN COUNTY Bentiu BAHR AL ETHIOPIA GHAZAL RAJA UNITY COUNTY Aweil TONJ NORTH COUNTY Warab 0 100 200 KILOMETERS WESTERN WARAB 0 50 100 150 MILES BAHR AL Wau GHAZAL JONGLEI CENTRAL Rumbek AFRICAN LAKES REPUBLIC WhiteNile Bor PROJECT COUNTIES To To SELECTED CITIES AND TOWNS DjemaDjema To YAMBIO Djema Li Yubu COUNTY WESTERN WILAYAH (STATE) CAPITALS EASTERN EQUATORIA 5°N NATIONAL CAPITAL EQUATORIA 5°N RIVERS Juba Kapoeta MAIN ROADS Yambio CENTRAL Torit RAILROADS DEM. REP. EQUATORIA This map was produced by the Map SEPTEMBER WILAYAH (STATE) BOUNDARIES Yei KENYA Design Unit of The World Bank. The IBRD INTERNATIONAL BOUNDARIES OF CONGO boundaries, colors, denominations and any other information shown on MOROBO this map do not imply, on the part of The World Bank Group, any 36533 COUNTY judgment on the legal status of any 2008 territory, or any endorsement or 25°N UGANDA acceptance of such boundaries. ToTo ToIsiro 30°E 35°E Isiro