Project Appraisal Document

125 Pages·2015·4.25 MB·English

by  World Bank Group

d
e
z
ri
o
h
ut
A
e Document of
r
u
s The World Bank
o
cl
s
Di
c FOR OFFICIAL USE ONLY
bli
u
P Report No: PAD1146

d
e
z INTERNATIONAL DEVELOPMENT ASSOCIATION
ri
o
h
ut PROJECT APPRAISAL DOCUMENT
A
e
r
u
s ON A
o
cl
s
Di PROPOSED CREDIT
c
bli
u
P IN THE AMOUNT OF SDR125.2 MILLION
(US$ 176.06 MILLION EQUIVALENT)

d
e
z
ri TO THE
o
h
ut
A PEOPLE’S REPUBLIC OF BANGLADESH
e
r
u
s
o FOR A
cl
s
Di
c NATIONAL AGRICULTURAL TECHNOLOGY PROGRAM - PHASE II PROJECT
bli (NATP-II)
u
P

May 14, 2015
d
e
z
ri
o
h Agriculture Global Practice
ut
A SOUTH ASIA
e
r
u
s
o
cl
s
Di
c This document is being made publicly available prior to Board consideration. This does not
bli imply a presumed outcome. This document may be updated following Board consideration
u
P
and the updated document will be made publicly available in accordance with the Bank’s
policy on Access to Information.
CURRENCY EQUIVALENTS

(Exchange Rate Effective April 30, 2015)

Currency Unit = SDR
SDR 0.71103 = US$1
US$ 1.40642 = SDR 1

FISCAL YEAR
July 1 – June 30

ABBREVIATIONS AND ACRONYMS

AIF Agricultural Innovation Fund DPD Deputy Project Director
APL Adaptable Program Loan DPP Development Project Proposal
BARC Bangladesh Agricultural Research DP Direct Procurement
Council EMF Environmental Management
BARI Bangladesh Agricultural Research Framework
Institute EOP End of Project
BBS Bangladesh Bureau of Statistics ERR Economic Rate of Return
BFRI Bangladesh Fisheries Research FAO Food and Agriculture Organization
Institute FAPAD Foreign Aided Project Audit
BINA Bangladesh Institute for Nuclear Directorate
Agriculture FEDEC Finance for Enterprise Development
BLRI Bangladesh Livestock Research and Employment Creation Project
Institute FG Farmer Group
BMD Bangladesh Meteorological FIAC Farmers’ Information and Advice
Department Center
BRRI Bangladesh Rice Research Institute FM Financial Management
CAS Country Assistance Strategy GAP Good Agricultural Practices
CCMC Commodity Collection and Marketing GDP Gross Domestic Product
Center GMO Genetically Modified Organism
CEAL Community Extension Agents for GOB Government Of Bangladesh
Livestock HEQEP Higher Education Quality Enhancement
CIG Common Interest Group Project
CIP Country Investment Plan HOPE Head of Procurement Entity
CONTASA Convertible Taka Special Account Hortex Horticulture Export Development
CRGP Competitive Research Grant Program Foundation
DA Designated Account ICB International Competitive Bidding
DAE Department of Agricultural Extension ICT Information and Communication
(MOA) Technology
DLS Department of Livestock Services IDA International Development Association
(MOFL) (WB Group)
DOF Department of Fisheries (MOFL) IFAD International Fund for Agricultural
Development
IFC International Finance Corporation PCU Project Coordination Unit
IRR Internal Rate of Return PCMU Project Coordination and Management
IUFR Interim Unaudited Financial Reports Unit
JPSC Joint Project Steering Committee PDO Project Development Objective
LEAF Local Extension Agent for Fisheries PIU Project Implementation Unit
MOA Ministry of Agriculture PMP Pest Management Plan
MOFL Ministry of Fisheries & Livestock PMU Project Management Unit
MIDPCR Market and Infrastructure PO Producer Organization
Development Project in Chaorland SCA Seed Certification Agency
Regions SEPA Procurement Plan Execution System
NAEP National Agricultural Extension Policy SMF Social Management Framework
NARI National Agricultural Research SORT Systematic Operations Risk-Rating
Institute Tool
NARS National Agricultural Research System UNDB United Nations Development
NCB National Competitive Bidding Business
OA Operating Account USAID US Agency for International
OTM Open Tendering Method Development
PACE Promoting Agricultural
Commercialization and Enterprises
PACT Project for Agricultural
Commercialization and Trade

Regional Vice President: Annette Dixon
Country Director: Johannes Zutt
Senior Global Practice Director: Juergen Voegele
Practice Manager: Martien van Nieuwkoop
Task Team Leader: Patrick Verissimo

BANGLADESH
National Agricultural Technology Program – Phase II Project
(NATP-II)

TABLE OF CONTENTS

Page
I. STRATEGIC CONTEXT ..........................................................................................13
A. Country Context .......................................................................................................... 13
B. Sectoral and Institutional Context ............................................................................... 13
C. Higher Level Objectives to which the Project Contributes ........................................ 15
II. PROJECT DEVELOPMENT OBJECTIVES ............................................................16
A. PDO............................................................................................................................. 16
B. Project Beneficiaries ................................................................................................... 17
C. PDO-level Results Indicators ...................................................................................... 18
III. PROJECT DESCRIPTION ........................................................................................18
A. Project Components .................................................................................................... 20
B. Project Financing ........................................................................................................ 24
C. Lessons Learned and Reflected in the Project Design ................................................ 28
IV. IMPLEMENTATION ................................................................................................30
A. Institutional and Implementation Arrangements ........................................................ 30
B. Results Monitoring and Evaluation ............................................................................ 31
C. Sustainability............................................................................................................... 32
V. KEY RISKS AND MITIGATION MEASURES ......................................................34
A. Risk Ratings Summary Table ..................................................................................... 34
B. Overall Risk Rating Explanation ................................................................................ 34
C. Governance and Accountability .................................................................................. 35
VI. APPRAISAL SUMMARY .........................................................................................36
A. Economic and Financial Analysis ............................................................................... 36
B. Technical ..................................................................................................................... 36
C. Financial Management ................................................................................................ 37
D. Procurement ................................................................................................................ 38
E. Social (including Safeguards) ..................................................................................... 39
F. Environment (including Safeguards) .......................................................................... 40
G. World Bank Grievance Redress .................................................................................. 40
Annex 1: Results Framework and Monitoring...............................................................................41
Annex 2: Detailed Project Description ..........................................................................................46
Annex 3: Implementation Arrangements .......................................................................................62
Annex 4: Systematic Operations Risk-Rating Tool (SORT) .........................................................80
Annex 5: Implementation Support Plan .........................................................................................82
Annex 6: Economic and Financial Analysis ..................................................................................85
Annex 7: Governance and Accountability Action Plan (GAAP) ..................................................90
Annex 8: Guiding principles for the Agricultural Innovation Fund (AIF) ....................................95
Annex 9: Leveraging ICT to improve NATP-II performance .......................................................98
Annex 10: Poverty, Targeting and Gender ..................................................................................101
Annex 11: Complementarity with IFAD strategy, current loan portfolio and lessons learnt ......107
Annex 12: Geographic Coverage of NATP-II by districts and Upazilas ....................................108
Annex 13: Lessons Learned from NATP: Synthesis of the Impact Assessment .........................115

TABLES AND FIGURES

Table 1: Overview of total project costs (top) and IDA withdrawal schedule (bottom) 27
Table 2: Economic and financial analysis and sensitivity analysis: key outcomes 36
Table 3: Selected agricultural technologies readily available under NATP-II 59
Table 4: Procurement process for pooled procurement for selected goods and services 76
Table 5: Overview of skills needed by PMU in early stages of project implementation 83
Table 6: Overview of early implementation support provided (first 24 months) 84
Table 7: NATP-II Governance and Accountability Action Plan 92

Figure 1: Project overview, objective and overall context 16
Figure 2: NATP-II strategic approach for support to farmers 19
.
PAD DATA SHEET
Bangladesh
Bangladesh: National Agricultural Technology Program - Phase II project
NATP-II (P149553)

PROJECT APPRAISAL DOCUMENT
.
SOUTH ASIA
0000009056
Report No.: PAD1146

.
Basic Information
Project ID EA Category Team Leader
P149553 B - Partial Assessment Patrick Verissimo
Lending Instrument Fragile and/or Capacity Constraints [ ]
Investment Project Financing Financial Intermediaries [ ]
Series of Projects [ ]
Project Implementation Start Date Project Implementation End Date
01-Sep-2015 31-Mar-2021
Expected Effectiveness Date Expected Closing Date
01-Jul-2015 30-Sep-2021
Joint IFC Joint Level
Complementary or Interdependent project requiring
Yes
active coordination
Practice Senior Global Practice
Country Director Regional Vice President
Manager/Manager Director
Martien van Nieuwkoop Juergen Voegele Johannes Zutt Annette Dixon
.
Borrower: Government of Bangladesh (MoFin/ERD)
Responsible Agency: Ministry of Agriculture (MOA)
Contact: Mr. Shyamal Kanti Ghosh Title: Secretary
Telephone No.: 880-2-9540100 Email: [email protected]
.
Project Financing Data(in USD Million)
[ ] Loan [ ] IDA Grant [ ] Guarantee
[ X ] Credit [ ] Grant [ ] Other
Total Project Cost: 214.00 Total Bank Financing: 176.06
Financing Gap: 0.00
.
Financing Source Amount
BORROWER/RECIPIENT 6.65
International Development Association (IDA) 176.06
US Agency for International Development 7.43
(USAID)
International Fund for Agriculture 23.86
Development (IFAD)
Total 214.00
.
Expected Disbursements (in USD Million)
FY 2016 2017 2018 2019 2020 2021 0000 0000 0000 0000
Annual 10.00 20.00 40.00 52.00 52.00 40.00 0.00 0.00 0.00 0.00
Cumul. 10.00 30.00 70.00 122.00 174.00 214.00 0.00 0.00 0.00 0.00
.
Institutional Data
Practice Area / Cross Cutting Solution Area
Agriculture
Cross Cutting Areas
[ X ] Climate Change
[ ] Fragile, Conflict & Violence
[ X ] Gender
[ ] Jobs
[ ] Public Private Partnership
Sectors / Climate Change
Sector (Maximum 5 and total % must equal 100)
Major Sector Sector % Adaptation Mitigation
Co-benefits % Co-benefits %
Agriculture, fisheries, and forestry Ag. extension & research 50
Agriculture, fisheries, and forestry Animal production 20
Agriculture, fisheries, and forestry Crops 20
Information and communications Information technology 10
Total 100
x I certify that there is no Adaptation and Mitigation Climate Change Co-benefits information
applxicable to this project.
. x
Themes
Theme (Maximum 5 and total % must equal 100)
Major theme Theme %
Rural development Rural services and infrastructure 50
Trade and integration Technology diffusion 25
Rural development Rural markets 25
Total 100
.
Proposed Development Objective(s)
To increase the agricultural productivity of smallholder farms and improve smallholder farmers’ access
to markets in selected districts.
.
Components
Component Name Cost (USD Millions)
Enhancing Agricultural Technology Generation 52.00
Supporting Crops Development 66.00
Supporting Fisheries Development 37.00
Supporting Livestock Development 47.00
Project Management 12.00
.
Compliance
Policy
Does the project depart from the CAS in content or in other significant Yes [ ] No [ X ]
respects?
.
Does the project require any waivers of Bank policies? Yes [ ] No [ X ]
Have these been approved by Bank management? Yes [ ] No [ ]
Is approval for any policy waiver sought from the Board? Yes [ ] No [ X ]
Does the project meet the Regional criteria for readiness for implementation? Yes [ X ] No [ ]
.
Safeguard Policies Triggered by the Project Yes No
Environmental Assessment OP/BP 4.01 X
Natural Habitats OP/BP 4.04 X
Forests OP/BP 4.36 X
Pest Management OP 4.09 X
Physical Cultural Resources OP/BP 4.11 X
Indigenous Peoples OP/BP 4.10 X
Involuntary Resettlement OP/BP 4.12 X
Safety of Dams OP/BP 4.37 X
Projects on International Waterways OP/BP 7.50 X
Projects in Disputed Areas OP/BP 7.60 X
.
Legal Covenants
Name Recurrent Due Date Frequency
1. Governance Accountability Yes various n.a.
Action Plan (GAAP)
Description of Covenant
Carry out, in a manner satisfactory to IDA, all activities listed in the GAAP, as per the respective
deadlines (see PAD, Annex 7)
2. Joint Project Steering Yes Not later than one n.a.
Committee (JPSC) and month after
Project Management Unit Effective Date
(PMU)
Description of Covenant
Establish and thereafter maintain, JPSC and PMU with mandate, terms of reference and resources
satisfactory to IDA
3. Project Implementation Units Yes Not later than two n.a.
(PIUs) months after
Effective Date
Description of Covenant
Establish and thereafter maintain, PIUs in each of the Implementing Agencies with mandate, terms of
reference and resources satisfactory to IDA
4. Project Implementation Yes Throughout n.a.
Manual (PIM) implementation
Description of Covenant
Carry out the Project in accordance with the PIM
5. Grants under Agricultural Yes Throughout n.a.
Innovation Fund (AIF) implementation
Description of Covenant
Provide grants following the requirements of the AIF Operational Guidelines and Procedures applicable
for each AIF window and enter into agreements with Eligible Beneficiaries under terms and conditions
acceptable to IDA
6. Independent AIF performance No Sept. 30, 2017 Once
assessment
Description of Covenant
Employ an third party entity to carry out an independent performance assessment of the AIF for
consideration in the Mid-term Review