Cameroon - Grassfield Rural Infrastructure and Participatory Development Support Project-Phase II

27 Pages·2013·1.24 MB·English

AFRICAN DEVELOPMENT FUND

PROJECT : GRASSFIELD, RURAL INFRASTRUCTURE AND PARTICIPATORY
DEVELOPMENT SUPPORT PROJECT, PHASE II
(GRASSFIELD II)

COUNTRY: CAMEROON

PROJECT APPRAISAL REPORT

OSAN DEPARTMENT

September 2013
Translated document
TABLE OF CONTENTS
Currency Equivalents, Fiscal Year, Weights and Measures, Acronyms and Abbreviations Project
Information Sheet, Executive Summary, Logical Framework, Implementation Schedule (i – vi)
I. STRATEGIC THRUST AND RATIONALE ........................................................................ 1
1.1 Project Linkages with Country Strategy and Objectives ................................................... 1
1.2 Rationale for Bank’s Involvement ..................................................................................... 1
1.3 Aid Coordination ................................................................................................................ 2
II PROJECT DESCRIPTION ..................................................................................................... 3
2.1 Project Components ........................................................................................................... 3
2.2 Technical Solutions Retained and Other Alternatives Explored ..................................... 4
2.3 Project Type ........................................................................................................................ 5
2.4 Project Cost and Financing Arrangements ....................................................................... 5
2.5 Project Target Areas and Beneficiaries ............................................................................. 6
2.6 Participatory Process for Project Identification, Design and Implementation............... 7
2.7 Bank Group Experience and Lessons Reflected in Project Design ................................. 7
2.8 Key Performance Indicators .............................................................................................. 7
III. PROJECT FEASIBILITY .......................................................................................................... 8
3.1. Economic and Financial Performance ............................................................................. 8
3.2. Environmental and Social Impact ..................................................................................... 8
IV IMPLEMENTATION ............................................................................................................ 10
4.1 Implementation Arrangements ........................................................................................ 10
4.2 Project Monitoring and Evaluation ................................................................................. 12
4.3. Governance ....................................................................................................................... 13
4.4 Sustainability .................................................................................................................... 13
4.5 Risk Management ............................................................................................................. 13
4.6 Knowledge Building ......................................................................................................... 14
V LEGAL FRAMEWORK ....................................................................................................... 14
5.1 Legal Instrument .............................................................................................................. 14
5.2 Conditions Associated with Bank’s Intervention ............................................................ 14
VI RECOMMENDATION.......................................................................................................... 15
Appendix I Country’s Comparative Socio-Economic Indicators ............................................ I
Appendix II Table of AfDB’s Portfolio in the Country as at 15 September 2013 ................ II
Appendix III List of Related Projects Financed by the Bank and Other Development Partners of
the Country ................................................................................................................................. III
Appendix IV Project Area ...................................................................................................... IV
Currency Equivalents
(August 2013)

UA 1 : XAF 747.745
EUR 1 : XAF 655.97

Fiscal Year

1 January – 31 December

Weights and Measures
1 metric tonne = 2204 pounds
1 metre (m) = 3.28 feet
1 millimetre (mm) = 0. 03937 inch
1 kilometre (Km) = 0.62 mile
1 hectare (ha) = 2.471 acres

Acronyms and Abbreviations

ADF : African Development Fund
CAA : Autonomous Sinking Fund
CAADP : Comprehensive Africa Agriculture Development Programme
CDP : Council Development Plan
CMFO : Cameroon Field Office
CSP : Country Strategy Paper
ERR : Economic Rate of Return
GDP : Gross Domestic Product
GESP : Growth and Employment Strategy Paper
HIPC : Heavily Indebted Poor Countries
IFAD : International Fund for Agricultural Development
IRAD : Institute of Agricultural Research for Development
LDF : Local Development Fund
MIDENO : North West Development Authority
MINADER : Ministry of Agriculture and Rural Development
MINEPAT : Ministry of Economy, Planning and Regional Development
NPV : Net Present Value
PADMIR : Rural Microfinance Development Support Project
PARFAR : Rural Family Income Improvement Project
PCR : Project Completion Report
PDRDR : Rumpi Area Decentralized Rural Development Project
PNDP : National Programme for Participatory Development
PNDRT : National Roots and Tubers Development Programme
PO : Producer Organization
PSAE : Agricultural and Livestock Sector Programme
RAF : Financial and Administrative Officer (Responsable administratif et
Financier)
RDP : Rural Development Project
RSDS : Rural Sector Development Strategy
UNEXPALM : Union of Palm-Oil Producers
WWF : World Wildlife Fund

i
PROJECT INFORMATION SHEET

Client Information
___________________________________________________________________________
BORROWER: Republic of Cameroon

EXECUTING AGENCY: Project Coordination Unit under the responsibility of MINADER

Financing Plan
Source Amount (UA M) Instrument

ADF 13.610 ADF Loan and
Grant
ADF 3.190 ADF Grant
GOVERNMENT 8.80 -

TOTAL COST 25.6

AfDB’s Key Financing Information
Loan and Grant Currency UA

Interest Rate Type NA
Interest Rate Spread NA
Service Charge : 0.75% per year on loan amount disbursed
and outstanding

Commitment Fee 0.5% on undisbursed loan amount 120 days
after signature of the Loan Agreement
Other Fees None
Tenor 50 years
Grace Period 10 years
NPV (baseline scenario) CFAF 15.744 billion
ERR (baseline scenario) 19.3%

Timeframe – Main Milestones (expected)

Concept Note Approval May 2013
Project Approval October 2013
Effectiveness December 2013
Completion December 2018
Last Disbursement June 2019
Last Reimbursement December 2063

i i
Executive Summary
I Overview
The Rural Infrastructure and Participatory Development Support Project, Phase II (Grassfield II) will
be implemented in the North-West Region of Cameroon. The main activity of 70% of the region’s
population is agriculture and 13% of the country’s rural poor live there. This operation is a sequel to
an initial project (2005-2011), which had significant results and a positive impact on the income of the
beneficiary communities. However, the Government has sought to consolidate the project
achievements due to the persistence of basic needs and the size of the intervention area in relation to
the resources allocated. Consequently, and as a continuation of the project’s first phase, this operation
will be implemented in those basins with strong production potential, namely Widikum,
Santah/Tubah, Gayama and Mbaw/Mbonso covering 8 of the region’s 36 council areas, with a
concentration on the first two to maximize the impacts. The selection of these basins was confirmed
following a feasibility study conducted by the Government in the project intervention area. This new
operation will help to improve agricultural production and the income of the beneficiary communities
by creating rural infrastructure and building the capacity of the actors. The estimated outputs are: (a)
irrigation development (ID) on 610 ha; (b) rehabilitation of 278 km of rural roads; and (c)
establishment of socio-economic support facilities and capacity building for the different partners.
The project’s total cost is estimated at UA 25.600 million.
The project will be implemented over five years from April 2014, and will have over 250,000 direct
beneficiaries half of whom are women in 50,000 households plus transporters and traders. In addition,
it will help to build the capacity of cooperatives, agricultural professional associations and regional
and local technical administrations. At full development, the project will increase agricultural
production by about 37,000 tonnes in the intervention area. The project economic rate of return is a
satisfactory 19.3% with a net present value of CFAF 15.745 billion. The beneficiaries will participate
through the planning, implementation and management of the different activities.
II Needs Assessment

The project is justified by the need to consolidate the achievements of Grassfield I (almost CFAF 5
billion in additional income, a 60% increase in marketed production, rehabilitation of 257 km of
tracks, etc.) as well as the strengthening of rural infrastructure. The need to develop the high potential
areas identified in the Government’s feasibility study is further justification for the project.

III Bank’s Value Added

The Bank’s experience in implementing agricultural development projects in the North-West Region
gives it an undoubted advantage and the specific ability to provide the necessary technical support for
the design and implementation of this operation. The project shows a high degree of complementarity
with the Bamenda – Enugu Corridor Project financed by AfDB, which will help to increase trade with
Nigeria, Cameroon’s large neighbour. The project will also scale up actions carried out under IRAD’s
basic seed production operation financed by a Nigeria Technical Cooperation Fund (NTCF) grant.

IV Knowledge Building

The project will help to generate knowledge, especially thanks to the establishment of a market
information system that will be a major decision-making tool. The project is envisaging the adoption
of an innovative approach involving the implementation of a pilot activity to establish an information
system platform on agricultural markets called: ‘AgriTechnology Cameroon (ATC)’. It will be based
on the use of mobile telephony services (SMS) and other media for the real time dissemination of
information and appropriate services.
iii
LOGICAL FRAMEWORK

CAMEROON: Grassfield Rural Infrastructure and Participatory Development Support Project, Phase II (GRASSFIELD II)
PROJECT GOAL: Increase the volume of agricultural production, as well as producers’ income in the project area
RESULTS CHAIN PERFORMANCE INDICATORS MEANS OF RISKS AND MITIGATION
Indicators (including CSI) Baseline Target VERIFICATION MEASURES
Contribution to the Household survey,
T improvement of Level of food insecurity (in %) In 2010, the level of food The level of food insecurity is 19% in 2020 monitoring of
C
A food security insecurity was 25%, national strategy
P
M documents
I
Outcome 1: the 1.1 Annual agricultural production (in tonnes) 1.1 2013 oil palm: oil (4000), 1.1 2024/251: oil palm: oil (9000), cocoa (395), Project monitoring
volume of cocoa (20), plantain (80), rice plantain (1900), rainfed rice (4900), maize (4500), reports; Inspection
agricultural (2800), maize (1500), cassava cassava (4900) potato (6180), tomato (3000). records and Risks
S production (900) potato (4500), tomato statistics Price fluctuations
E
M increases in the (360) Mitigation Measures
O area 1.2 Average additional income per hectare Crop diversification
C
T 1.2 Average annual 1.2 Average annual income/producer CFAF
U
O Outcome 2: income/producer - CFAF 357,910 in 2018 and CFAF 477,210 in 2024
producers’ income 250,000
in the area
increases
1. Rural 1.1. Number of small irrigation systems developed 0 1.1. 14 (2017) Project monitoring Risks
infrastructure is 1.2. Area of oil palm plantations developed 0 1.2. 610 ha reports Weak mobilization of counterpart
established and 1.3. Length of rural tracks rehabilitated 0 1.3. 278.09 km of tracks (2015_2017) funds
operational 1.4. Number of agricultural product storage facilities 0 1.4. 19 storage facilities Mitigation measures
1.5. Number of markets rehabilitated 0 1.5. 10 markets Encourage authorities to make
1.6. Length of electricity network 0 1.6. 53.6 km with 17.8 km of three phase and 35.8 adequate budget appropriation;
1.7 Number of processing units installed km of single phase. close monitoring by CMFO of
1.8. Number of DWS systems rehabilitated/ 0 1.7. 10 processing units quarterly review meetings of
constructed 0 1.8. 12 DWS systems executing agencies of Bank-
S 1.9. Number of schools rehabilitated 0 1.9. 6 schools financed projects.
T
U
P
T 2. Beneficiaries’ 2.1 Areas sown 2.1 In 2017: 5 260 ha for all crops are supervised. Reports of Risks
U
O and stakeholders’ 2.2 Number of producers trained 2.2. 12 000 advisory-support Inadequate targeting of
capacity is built up 2.3 Socio-economic type associations established 2.3. In 2017: 35 track maintenance brigades are trained and equipped; 20 irrigation structures and beneficiaries
/revitalized and trained system management and maintenance committees comprising 30% women; those responsible Mitigation Measures
20 water management and maintenance committees; 50 people 3/5th of whom are for agriculture and Definition of objective criteria for
women trained in hygiene and health; 12 water management committees and 24 project monitoring/ the selection of beneficiaries when
standpipe operators 50% of whom are women are trained). evaluation preparing the project
2.4. Number of production processing units. 2.4. (In 2017) 2 palm oil extraction units, 2 cassava processing units and one implementation manual.
Arabica/Robusta coffee processing unit, 50 coffee dryers
2.5. 12 water sources protected by reforestation of 200 hectares using appropriate
2.5 Number of protected/reforested water sources species; promotion of village reforestation

1 In the case of oil palm and cocoa, which are perennial crops, the outcomes will only be achieved after the project implementation period (after 2018)
iv
1- Component 1: Rural Infrastructure (1.1 Irrigation Development; 1.2 Rural Tracks; 1.3 Processing and Market Access Facilities; 1.4 Basic Social Infrastructure) SOURCES (in million UA): 25.6 comprising ADF:
ES TN 2- Component 2: Capacity Building (2.1 Supervision of producers/capacity building in value chain development; 2.2 building the institutional and organizational 16.8(66%); Govt./benef.: 8.8 (34%)
TIVITI YBENOPM c3ena- pvCairocomintypm ooenfn estntaatl k 3aen:h dPo rlsodojecericsat l i cnmo eoonrnvditiiornoraintnimogn,e npatrn)o dc umreamnaegnetm ent, administrative, financial and accounting management, coordination, monitoring and evaluation, ACCooPmmPLppIooCnnAeennTtt I12O : N51,7S9, 44(0i5n 1 million UA) :
CA O Component 3: 2,208
C

v
PROJECT IMPLEMENTATION SCHEDULE

Year 2013 Year 2014 Year 2015 Year 2016 Year 2017 Year 2018
Activity/Task Description

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

1- Negotiations for the Signature of the Loan/Grant Agreements

Negotiations

Loan Approval

Signature of Financing Agreements

2- Project Start-Up Phase

Fulfillment of Conditions Precedent to Effectiveness and First Disbursement

Project Launching

Preparation of Procedures Manuals and Establishment of Management, Monitoring-Evaluation and Environmental Management Systems

3- Implementation of the Capacity Building Component

Signing of Partnership Agreements with Technical D.

Recruitment of Service Providers

Capacity Building Activities

4-Studies and Works Implementation

Preparation of Detailed Designs

Recruitment of a Consulting Firm for Infrastructure Works Control

Preparation of Bidding Documents, Issue of Invitations to Bid and Award of Contracts

Implementation of Infrastructure Works

5- Coordination-Monitoring/Evaluation

Submission of Project AWPB

Preparation of M&E Manual and Baseline Situation

External Monitoring Mission, Harmonization Meetings, MIDENO

Steering Committee

Mid-Term Review

Annual Audit

Project Completion Report
vi
REPORT AND RECOMMENDATION OF MANAGEMENT TO THE BOARD
OF DIRECTORS ON A PROPOSED LOAN/GRANT TO THE REPUBLIC OF CAMEROON
TO FINANCE THE GRASSFIELD RURAL INFRASTRUCTURE AND PARTICIPATORY
DEVELOPMENT SUPPORT PROJECT, PHASE II
Management submits this report and recommendation on a proposed ADF loan for Thirteen Million
Six Hundred and Ten Thousand Units of Account (UA 13,610,000) and an ADF grant for Three
Million One Hundred and Ninety Thousand Units of Account (UA 3,190,000), sourced from
cancelled operations (approximately 89%) and ADF 12 (11%), to finance the Grassfield Rural
Infrastructure Support and Participatory Development Support Project – Phase 2 in favour of rural
communities in the project area.
I. STRATEGIC THRUST AND RATIONALE

1.1 Project Linkages with Country Strategy and Objectives

1.1.1 Drawing on past lessons and other information, the Grassfield II project has retained two
production basins on which to focus its activities in order to make a visible impact that meets
expectations. The project is based on the needs and priorities of grassroots communities. Thus, the
irrigation schemes, the opening up of production areas through the construction/rehabilitation of
tracks and the promotion of the main sub-sectors are the major actions under this project. For their
successful implementation, all these actions require a structured and organized environment that will
foster the emergence of credible local actors capable of ensuring its sustainability. This is a
crosscutting preliminary approach as part of the capacity building to be carried out under the project.

1.1.2 This project is fully in keeping with Pillar II of the 2010-2014 CSP on infrastructure
development, especially rural infrastructure (tracks, markets, warehouses, etc.) that underpins
agricultural sector development. In fact, this pillar is a key and essential lever to drive the country’s
growth. The project also addresses the concerns of the 2010-2020 Rural Sector Development Strategy
(RSDS) and the 2010-2020 Growth and Employment Strategy Paper (GESP), approved in 2009.
Cameroon particularly suffers from a lack of rural and transport infrastructure that, in turn, impacts
negatively on opportunities for developing vast areas with favourable edaphoclimatic conditions. The
other main constraints hampering agricultural development include the remoteness of production
areas, difficulties in marketing agricultural produce and ineffective post-harvest operations, all
attributable to the poor condition of roads linking the production areas to the main consumption areas,
the high cost of transport and lack of commercial infrastructure (markets, warehouses, etc.).
Therefore, the opening up of the production areas will foster local development and facilitate trade
with Nigeria, Cameroon’s big neighbour. The project will also help to improve food security in the
region, thanks to increased agricultural production, processing and a reduction in post-harvest losses.

1.2 Rationale for Bank’s Involvement

1.2.1 It will be recalled that the Bank financed the first phase of this project, which geographically
covered the entire North-West Region where the incidence of poverty is 51%. The outputs of that
project may be summarized as follows: (i) 140 community development plans prepared; (ii) additional
income of about CFAF 5 billion generated in favour of project beneficiaries from agricultural
development activities; (iii) 60% increase in marketed production; (iv) rehabilitation of 258 km of
rural tracks and 11 bridges; (v) 47 mini-water supply systems constructed or rehabilitated; (vi) 104
classrooms constructed; (vii) 1 540 members of village development committees and 4 620 farmers
trained; and (viii) establishment of socio-economic infrastructure through the Local Development
Fund (LDF). Overall, the outcomes were highly appreciated by both the Cameroonian Administration
1
and the beneficiary communities. Indeed, following preparation of the project PCR, all the ratings
were satisfactory. To consolidate these achievements, the Grassfield II project will be implemented in
those basins with strong production potential, namely Widikum, Santah/Tubah, Gayama and
Mbaw/Mbonso, with a concentration of activities in the first two to maximize impact. The project
will help to remove the main constraints on the development of the agricultural sub-sectors. It will
also contribute to promoting youth employment and developing new land by providing opportunities
for settling smallholders and young people in a region where the population density does not exceed
100 inhabitants/km².

1.2.2 The Bank’s experience in implementing agricultural development projects in the North-West
region over the past 25 years gives it an undoubted advantage and the specific ability to provide the
necessary technical support for the design and implementation of this operation. This project will also
scale up actions carried out under IRAD’s basic seed production operation financed by a Nigeria Trust
Fund grant. Furthermore, the project shows a high degree of complementarity with the Bamenda –
Enugu Corridor Project financed by the Bank, which will help to increase trade with Nigeria,
Cameroon’s large neighbour. Grassfield II is also in keeping with the Bank’s 2010-2014 Agriculture
Sector Strategy, which specifically targets agricultural infrastructure development - an area in which
the Bank has demonstrated its comparative advantage. It is also consistent with the Bank’s long-term
strategy, one of whose operational priorities is infrastructure development

1.3 Aid Coordination

1.3.1 Aid coordination and cooperation with the technical and financial partners at national level is
the responsibility of the Ministry of Economy, Planning and Regional Development (MINEPAT).
This ministry centralizes national investment requirements that could fall within the context of
cooperation in liaison with the other ministerial departments. MINEPAT includes the Directorate-
General for Cooperation with its Regional Integration Division (DIR), which is the Bank’s focal point
for aid coordination. As regards the Technical and Financial Partners, the Multi-Partner Committee
(MPC) for monitoring the PRSP established in June 2001 represents a platform for dialogue and
exchange on all key development issues in Cameroon.

1.3.2 This structure is supported by active technical and thematic sub-committees dedicated to the
alignment and harmonization agenda. The Bank has played the role of leader of the Sector Committee
on Public Finance since September 2008 and actively participates on a monthly basis in all the sector
thematic groups, in particular the Rural MPC and the Forest/Environment MPC. In addition to matters
relating to the operations of each partner and the government, exchanges in these thematic groups also
focus on initiatives such as CAADP and climate change. Exchanges in the context of the MPC
inevitably lead not only to sharing experiences and tools but also to deeper knowledge of the national
environment required to ensure efficient implementation of operations.

1.3.3 A number of projects in the North-West are financed by development partners. These include
the National Participatory Development Programme (PNDP) and the Agricultural Competitiveness
Support Programme financed by the World Bank, the Rural Microfinance Development Support
Project (PADMIR) and the National Roots and Tubers Development Programme (PNDRT) financed
by IFAD, as well as the Rural Development Project (PDR) financed by the European Union.
Grassfield II project activities will be conducted in close collaboration with those of the other on-
going or future projects in the North-West Region. Specifically, the project aims to open up the
production basins to foster local development and facilitate trading. It is also worth noting that JICA
has expressed an interest in participating in rice production development in the Gayama and
Mbaw/Mbonso basins.

2