Gambia - Farmer Managed Rice Irrigation Project - Appraisal Report

AFRICAN DEVELOPMENT FUND Language: English Original: English

REPUBLIC OF THE GAMBIA

APPRAISAL REPORT

FARMER MANAGED RICE IRRIGATION PROJECT

AGRICULTURAL AND RURAL DEVELOPMENT DEPARTMENT (OCAR) CENTRAL & WEST REGIONS APRIL 2005

i

TABLE OF CONTENTS Page

Project Information Sheet, Currency and Measures, List of Tables and Annexes, List of Abbreviations and Acronyms, Basic Data Sheet, Project Logical Framework, Executive Summary i -ix 1 ORIGIN AND HISTORY OF THE PROJECT ................................................................... 1 2 THE AGRICULTURAL SECTOR...................................................................................... 1

2.1 Salient Features ............................................................................................................ 1 2.2 Social Organisation of Production ............................................................................... 2 2.3 Land Tenure ................................................................................................................. 3 2.4 Aquaculture .................................................................................................................. 3 2.5 Poverty Status............................................................................................................... 4 2.6 Gender Issues ............................................................................................................... 4 2.7 HIV/AIDS and Malaria Issues ..................................................................................... 5 2.8 Institutional Framework ............................................................................................... 5 2.9 Agricultural Sector Constraints .................................................................................... 9 2.10 Agricultural Development Policy and Strategy ........................................................... 9 2.11 Donor Interventions ................................................................................................... 10

3 THE IRRIGATION AND RICE SUB-SECTORS ............................................................ 11 3.1 The Irrigation Sub-sector ........................................................................................... 11 3.2 Rice Sub-Sector.......................................................................................................... 13

4 THE PROJECT .................................................................................................................. 14 4.1 Project Concept and Rationale ................................................................................... 14 4.2 Project Area and Beneficiaries................................................................................... 15 4.3 Strategic Context ........................................................................................................ 17 4.4 Project Objective ........................................................................................................ 17 4.5 Project Description..................................................................................................... 17 4.6 Production, Markets and Prices.................................................................................. 22 4.7 Environmental Impact ................................................................................................ 22 4.8 Social Impact.............................................................................................................. 23 4.9 Project Costs............................................................................................................... 24 4.10 Sources of Financing and Expenditure Schedule....................................................... 25

5 PROJECT IMPLEMENTATION ...................................................................................... 25 5.1 Executing Agency ...................................................................................................... 25 5.2 Institutional Arrangements......................................................................................... 26 5.3 Supervision and Implementation Schedules .............................................................. 27 5.4 Procurement Arrangements........................................................................................ 28 5.5 Disbursement Arrangements ...................................................................................... 29 5.6 Monitoring and Evaluation......................................................................................... 30 5.7 Financial Reporting and Auditing .............................................................................. 31 5.8 Aid Co-ordination ...................................................................................................... 31

6 PROJECT SUSTAINABILITY AND RISKS ................................................................... 32 6.1 Recurrent Costs .......................................................................................................... 32 6.2 Project Sustainability.................................................................................................. 32 6.3 Critical Risks and Mitigating Measures ..................................................................... 34

7 PROJECT BENEFITS ....................................................................................................... 34 7.1 Financial Analysis ...................................................................................................... 34 7.2 Economic Analysis..................................................................................................... 35 7.3 Cross Cutting Issues ................................................................................................... 35 7.4 Sensitivity Analysis.................................................................................................... 36

8 CONCLUSIONS AND RECOMMENDATIONS............................................................. 36 8.1 Conclusions ................................................................................................................ 36 8.2 Recommendations and Conditions for Loan Approval.............................................. 37

ii

LIST OF TABLES

Table 4.1: Summary of Project Cost Estimates by Component................................................. 24 Table 4.2: Summary of Project Estimates by Category of Expenditure .................................... 24 Table 4.3: Project Sources of Finance........................................................................................ 25 Table 4.4: ADF Loan/Government Financing ........................................................................... 25 Table 4.5: ADF Grant/Government Financing .......................................................................... 25 Table 5.1: Implementation Schedule.......................................................................................... 27 Table 5.2: Summary of Procurement Arrangements.................................................................. 28 Table 5.3: Expenditure Schedule by Component....................................................................... 30 Table 5.4: ADF/Government/Beneficiaries Expenditure Schedule ........................................... 30 Table 5.5: ADF GRANT/Government Expenditure Schedule................................................... 30 Table 5.6: Summary of Expenditure by Category and Source of Finance................................. 31

LIST OF ANNEXES

1. Map of the Project Area 2. Project Organisation and Management 3. Implementation Schedule 4. Environmental and Social Management Summary 5 List of Items in Volume 2 6 Bank Group operations in the Gambia

The report was prepared by Messrs. Medhat M. Sabri, Principal Socio-Economist (Team Leader), Harouna Dosso, Senior Agronomist, Moses Basalirwa, Senior Financial Analyst, and E. K. Kuatsinu, Irrigation Engineer, Consultant all of OCAR.2, and Modibo Traore, Senior Environmentalist of OCAR following an appraisal mission to The Gambia in May 2002. A second appraisal mission comprising Messrs A. Gombe, Agronomist and Mission Leader, M. Basalirwa and E. K. Kuatsinu was fielded in February-March 2005. Additional inquiries relating to the report should be directed to the authors or Mr. S. Z. Moussa, Manager, OCAR.2 (Ext. 2143).

.

iii

AFRICAN DEVELOPMENT FUND 01 BP V 1387, ABIDJAN 01, COTE D'IVOIRE

TEL: (225) 20 20 44 44 FAX: (225) 20 20 44 90

PROJECT INFORMATION SHEET 1. COUNTRY : Republic of The Gambia 2. PROJECT TITLE : Farmer Managed Rice Project 3. LOCATION : Central River Division (Sapu area) 4. BORROWER : Republic of The Gambia 5. EXECUTING AGENCY : Department of State for

Agriculture, The Quadrangle, Banjul

Tel: (220) 20 11 87 Fax: (220) 22 89 98 E-Mail: psdosa@ qanet.gm. 6. PROJECT DESCRIPTION: The project components are i) Land Development; ii) Capacity Building, iii) Rural Credit Support and iv) Project management. The main activities include irrigation development, and training of staff, farmers and entrepreneurs. 7. TOTAL COST : UA 6.42 million

Foreign exchange : UA 4.46 million Local cost : UA 1.96 million 8. ADF LOAN : UA 5.00 million ADF GRANT : UA 0.50 million 9. OTHER SOURCES OF FINANCE Government of Gambia : UA 0.70 million Beneficiaries : UA 0.22 million 10. DATE OF APPROVAL : (EXPECTED April 2005) 11. PROBABLE COMMENCEMENT DATE AND PROJECT DURATION

Commencement : December 2005 Duration : 5 Years

12. PROCUREMENT OF GOODS, WORKS AND SERVICES Procurement of goods, works and consultancy services financed by ADF resources will be carried out in conformity with Bank Group Rules of Procedure. The procurement of civil works (land development) will be by International Competitive Bidding (ICB); Vehicles & equipment and provision of training by National Competitive Bidding; and consultancy services through competition on the basis of a short-list. 13. CONSULTANCY SERVICES REQUIRED Consultancy services for the development of rice policy, training, mid-term review, design and supervision of land development works, auditing of the project accounts, MIS design and monitoring and also the Environmental and Social Management Plan (ESMP) will be required.

.

iv

CURRENCY AND MEASURES (February 2005)

UA 1 = GMD 39.0538 UA 1 = US$ 1.52049 US$ 1 = GMD 25.68501

FINANCIAL YEAR

1 January – 31 December

METRIC WEIGHTS AND MEASURES

LIST OF ABBREVIATIONS AND ACRONYMS

GMD : Gambian Dalasi M&E : Monitoring & Evaluation AATG : Action Aid The Gambia AWP&B : Annual Work Programme & Budget ADB : African Development Bank ADF : African Development Fund CRD : Central River Division CRS : Catholic Relief Services DAS : Department of Agric. Services DFID : Dept. for Inter. Development DOSA : Dept. of State for Agriculture EIRR : Econ. Internal Rate of Return ERP : Economic Recovery Programme DOP : Department of Planning ESMP : Env. & Social Management Plan FAO : Food & Agric. Organisation: UN FIRR : Financial Internal Rate of Return FMRP : Farmer Managed Rice Project GDP : Gross Domestic Product GOTG : Government of The Gambia IBAS : Indigenous Business Advisory Services LADEP : Low Land Agric. Dev’t Program IFAD : Int. Fund for Agric. Development MFI : Micro-Finance Institution NARI : National Agric. Research Institute NEA : National Environmental Agency NGO : Non-Governmental Organisation PSC : Project Steering Committee PCR : Project Completion Report PIU : Project Implementation Unit RFCS : Rice Farmers Coperative Society RIDEP : Rice Development Project SDF : Social Development Fund SME : Small and Medium Scale Enterprise SMS : Subject Matter Specialist STU : Seed Technology Unit SWMU : Soil and Water Management Unit ADF GRANT : Technical Assistance Fund UA : (Bank) Unit of Account UNDP : United Nations Dev’t Program VEW : Village Extension Workers VISACA : Village Savings and Credit Association WARDA : West African Research Development Association WFP : World Food Programme

vi

FARMER MANAGED RICE IRRIGATION PROJECT PROJECT MATRIX – ADF GRANT

HIERARCHY AND OBJECTIVES

OBJECTIVELY VERIFIABLE INDICATORS

MEANS OF VERIFICATION

ASSUMPTIONS AND RISKS

SECTOR GOAL Enhance food security and reduce poverty.

Rice production increased by 5% annually starting from PY3.

Government statistics

PROJECT OBJECTIVE To increase rice production and the incomes of smallholder target groups.

Farm net income raised from GMD5,500 (PY1) to GMD10,300 by PY3 and to GMD21,200 by PY5

1. DOSA records 2. Progress reports 3. Supervision missions

Macro-economic policies remained favourable

OUTPUTS A. LAND DEVELOPMENT

1. Irrigation infrastructure developed and operational. 2. Rural Infrastructure completed

1.1 1.2 1.3 1.4 2.1 2.2

1,200 ha developed and upgraded by PY3 2,300 smallholder producing rice by PY5 Yields increased from 2 to 3.0t/ha by PY3 & 5.5 t/ha by PY5 7,000T of additional milled rice produced annually beginning PY5 Construction of 6 meeting sheds, 20 stores, 82 drying floors by PY3. 8-Day-care centres and 15 wells constructed and rehabilitated by PY3

1. DOSA records 2. Progress reports 3. Supervision missions 4. Training records 5. Project records & accounts

1. Climatic conditions remain favourable

2. World and local market prices remain stable

3. Farmers adhere to the right agronomic practices.

B. CAPACITY BUILDING

1. Office Rehabilitation Completed

2. Farmers Support and Training are completed. Training of rice scientist and extension workers is completed.

1.1 2.1 2.2 2.3 2.4

Rehabilitation works for offices, training building, 13-staff houses & training building rehabilitated by PY2 90 farmer groups/associations formed and trained by PY3. New high yielding rice varieties adapted & adopted by farmers. Environmental & Social Management Plan operational by PY3 2300 farmers; 6 rice scientists, 22 extension agents trained by PY5

ESMP Consultant’s and NEA’s monitoring reports

vi

vii





C. RURAL CREDIT

Rural Credit Support Funds disbursed to SDF.

UA 131.51-credit facility used by rice producers, traders, mill operators and private entrepreneurs.

1. Counterpart fund available as planned 2. Competent staff designated 3. Staff turnover will be minimal

D. PROJECT MANAGEMENT

Project management team established and operational

1. Required Project staff recruited as planned 2. Procurements made in conformity with Fund

rules of procedure

1. Project Accounts 2. Supervision missions 3. Disbursement records

Select knowledgeable and efficient project manager and staff.

ACTIVITIES 1) LAND DEVELOPMENT

(a) Irrigation Development • Survey and designs of sites (new, converted &

upgraded) • Construct & upgrade water control structures

(b) Rural Infrastructure • Design & Construct Stores, Drying Floors, etc

2) CAPACITY BUILDING

• Recruitment of NGOs for farmer group formation and training

• Conduct Training workshops for farmers, and agricultural extension agents

• Conduct Farmers' visits to other groups • Construct/Rehabilitate Offices in SAPU.

3) RURAL CREDIT SUPPORT

• Establish credit facilities 4) PROJECT MANAGEMENT

• Recruitment of project staff and establishment of agreement with participating institutions

• Prepare Reports and conduct Audit • Undertake Mid-term review

RESOURCES/PROJECT BUDGET SOURCES: (UA million) ADF Loan 5.00 GOTG 0.67 Beneficiary 0.22 TOTAL 5.89 BUDGET (UA million) A. Land Development 3.29 B. Capacity Building 1.47 C. Rural Credit Support 0.16 D. Project Management 0.97 TOTAL PROJECT 5.89

viii

FARMER MANAGED RICE IRRIGATION PROJECT PROJECT MATRIX – ADF GRANT




ASSUMPTIONS AND RISKS SECTOR GOAL Contribute to enhanced food security and reduce poverty & rice imports.

Rice production increased by 5% annually starting from PY3.

Government statistics

PROJECT OBJECTIVE

To increase the incomes of smallholder farmers.

Farm net income raised from GMD5,500 (Yr 2006) to GMD10,300 by PY3 and to GMD21,200 by PY5

1. DOSA records 2. Progress reports 3. Supervision missions

Macro-economic policies remained favourable

OUTPUTS

B) CAPACITY BUILDING

Institutional Support to DOSA is completed.

• Internal Training: 12 SMS trained; 8 Support Staff

trained; 25 Staff trained on MIS; 8 staff trained on Management Aspects and Project Analysis; 6 persons trained on Monitoring and Evaluation; 10 persons trained on Data Processing;

• External Training: 1 person each trained on M&E of programs and projects; soil & water, agronomy, extension; and study tours completed for 12 Researchers & Senior Staff

• Office equipment: PCs, faxes, photocopiers, generators, and water pumps purchased and installed by PY1;

• 40 motor cycles purchased for the extension staff

1. Progress Reports, 2. Supervision Reports 3. Annual Reports

Minimal staff turnover.

ix





ACTIVITIES CAPACITY BUILDING

• Conduct internal training • Conduct external training • Purchase Office equipment • Conduct Study tours for staff.

RESOURCES/PROJECT BUDGET

Source of Finance (UA’000) ADF Grant 0.50 Government 0.03 Total 0.53

x

EXECUTIVE SUMMARY 1. Project Background Rice is the staple food of The Gambia and is traditionally cultivated, as a subsistence crop and for marketing on a small scale, on the uplands and swamps. The country is not self sufficient in rice production and, therefore, on average it imports 136,000 tons annually to meet domestic demand. Without production increases, cereal imports will need to triple by 2015. Foreign exchange constraints limit the country’s capacity to import rice. The Government is therefore committed to a policy of rice self-sufficiency. At present, only 40% of the total areas suitable for rice production are being utilised and there is further scope for expansion using the tidal irrigation potential of the River Gambia. However, previous experience in implementing and managing rice irrigation projects and/or programmes has indicated that large-scale irrigation schemes could not at present be fully sustainable in economic terms because of the current shortage of highly skilled personnel to administer such projects. Therefore, in 2001 the Government of The Gambia (GOTG) submitted to the Bank Group, a request for financing a farmer managed rice project. This project will urgently reduce the gap between production and consumption and eventually save scarce foreign exchange resources. 2. Purpose of the Loan The ADF loan of UA 5.00 million, amounting to 78% of total project cost estimated at UA 6.42 million, will be used to finance 100% of the foreign exchange (UA 4.07 million) and 51% of local cost (UA0.93 million). The ADF grant of UA0.50 million, amounting to 8% of total project cost, will be used to finance 100% of the foreign exchange (UA0.39 million) and 75% of local cost (UA0.11 million) for Institutional Support. The local cost contribution from the grant is high because most of the training and the establishment of the Department of State for Agriculture (DOSA) Database will be carried out locally. 3. Sector Goal and Project Objective The sector goal is to enhance food security, poverty reduction and decrease imports of rice. The specific objective is to increase rice production and incomes of smallholder rice farmers in the project area, a majority of who are women. 4. Brief Description of the Project’s Outputs In order to achieve the above objective, the project will focus its attention on (i) Land Development, (ii) Capacity Building; (iii) Rural Credit Support; and (iv) Project Management. 5. Project Cost The total project cost is estimated at UA 6.42 million out of which UA 4.46 million (70%) will be foreign currency and UA 1.96 million (30%) will be in local currency. 6. Source of Finance The African Development Fund and the Government of The Gambia will finance the project. ADF funds will be utilised to finance Land Development, Capacity Building, Rural Credit Support and Project Management. Total ADF loan and ADF Grant contribution representing 86% of the total project cost will be used to cover 100% of the foreign exchange costs and 53%

xi

of local costs. The Government of The Gambia and the beneficiaries’ contribution of UA 0.92 million representing 14% of the total project cost which will be utilised to cover the credit support component, staff salaries, office space rental and accommodation costs. 7. Project Implementation The project will be implemented over a period of five years. The overall implementation of the project activities will be the responsibility of Department of State for Agriculture (DOSA). 8. Conclusion and Recommendations 8.1 Conclusions 8.1.1 Rice has become an important staple food throughout The Gambia. About 50 per cent the rice consumption requirements is met by imports using scarce foreign exchange. The project will benefit about 2,300 farmers in the low land area, about 90-95 % of who are women. At full development, the proposed project will increase domestic milled-rice production by 7,000 tons per year. Hence, the project will contribute to foreign exchange savings valued at about US$ 2.0 million per annum. The incomes of participating farmers (household) will increase from Dalasis 5,500 (US$180) to Dalasis 21,200 (US$700) per ha per year. This is due to a second dry season crop and the improvement in water control in addition to the availability of farm inputs through the Government credit facilities. The project will directly benefit about 2,300 households (23,000 individuals) and create 4,500 seasonal jobs. About 90 farmers’ groups will be created and/or strengthened and about 2300 individual farmers will be trained by the project. The techniques initiated for tidal rice farming which are simple and geared towards tapping rice production potential, are highly valued by the women farmers. 8.1.2 The project will lead to a substantial increase in agriculture production and contribute to poverty alleviation as well as improve food security. Increased rice production by the project will induce increased employment and income generation opportunities in backward and forward linked industries. Group formation and training will facilitate technology adoption, access to inputs and marketing. Training will make the beneficiaries better citizens and equip them to participate in the affairs of the country. There will also be an improvement in rural living conditions as a result of increased incomes. The project, as designed, is socially desirable, environmentally sound, technically feasible, and financially and economically viable. The economic return determined is 23%. The proposed project remains a high priority in the agricultural development policy of the Government of The Gambia and it is consistent with the Bank Group’s vision and strategy for the country.

8.2 Recommendations In view of the expected project outputs, it is recommended that an ADF loan of not more than UA5.00 million and a ADF Grant of UA 0.50 million be granted to the Government of The Gambia for the purpose of implementing the project as described in this report, subject to the fulfilment of conditions stipulated in the loan and grant agreements.

1

1 ORIGIN AND HISTORY OF THE PROJECT 1.1 The Gambia has a total area of 10,400 square kilometres and lies on the west coast of Africa. The country consists of a narrow strip of land 25 to 50 km wide on both banks of The Gambia River, which stretches eastwards for about 450 km from the Atlantic Ocean. The topography consists mainly of riverine flats and swamps intersected by tidal creeks. Administratively, The Gambia is divided into five divisions comprising 35 districts and 1,870 villages with an average of 13 compounds each. 1.2 The main features of The Gambian economy are its small size, its narrow base and the influence of the re-export trade to Senegal, which entirely surrounds the country. The UNDP estimated the per capita income at US$ 350 (2002), ranked 151st out of 175 on the 2003, and 155th out of 177 on the 2004 Human Development Index, making The Gambia one of the poorest countries in Africa. With no exploitable mineral resources, the economy is chiefly dominated by tourism and agriculture, which account for 30% and 25 % of GDP, respectively. Manufacturing (assembly) and construction account for some 10% of GDP, with the service sector-transport, communications and government services being responsible for the remaining 35%. 1.3 Rice is considered the staple food of The Gambia with its consumption far exceeding production. Domestic rice production meets only about 50 percent of national requirements. The country imports now about 66,000 tons annually to meet domestic demand which is about 136,000 tons annually. Without production increases, cereal imports will need to triple by 2015. As The Gambia has the potential for producing rice competitively, the Government of The Gambia is committed to a policy of promoting and supporting the production of rice on a sustainable basis through the use of the available appropriate irrigation technology namely tidal irrigation with water from the River Gambia. Tidal irrigation is based on the twice-daily fluctuation in level of the river water, the difference in water level being at least one metre. This can be managed to irrigate and drain large areas in the swamps. 1.4 At present, only 40% (18,000 ha) of the total area suitable for rice production is being utilised and there is still scope for irrigation using the River Gambia as source of water. Consequently, realising the urgency of mitigating the drain on foreign exchange reserves, and in order to realise this potential, the Government of Gambia in 2001 submitted to the Bank Group, a request for the financing of a tidal irrigation project for rice production. The project was prepared and appraised in the year 2002. However, the Bank could not finance this project in 2002 due to unavailability of the resources for the project under The Gambia’s initial ADF-IX allocation. However, following the re-allocation of ADF-IX balances, a Bank mission was fielded during the period 27 February – 8 March 2005 to update the project appraisal report. The present report is therefore based on the findings and on information gathered during the two appraisal missions conducted by the Bank in 2002 and 2005. 2. THE AGRICULTURAL SECTOR 2.1 Salient Features 2.1.1 The Gambia is primarily an agricultural country with 80 percent of the population of 1.48 million depending on agriculture for its food and cash income. The agricultural sector is the sole means of income generation for the majority of rural households most whom live below the poverty line. Agriculture contributes about 40 percent of Gross

2

Domestic Product (GDP) and about 90 percent of export earnings. It remains the prime sector for investments to raise income, improve food security and reduce poverty. About 54% of The Gambia is good quality arable land (5,500 square kilometres), out of which about 39% (1880 square kilometres) is currently farmed by the 41,000 subsistence farm units in the country. About 810 square kilometres (81,000 ha) are irrigable, all in the Central River Division (56%) and Upper River Division (44%). About 2,300 ha of this potential area, are currently under irrigation. Production is quite diversified. Cash crops such as groundnuts and cotton are grown in the upland areas and rice in lowland, riverine areas (rain-fed swamps or under irrigation) for both cash and subsistence. Other principal subsistence cereal crops grown are millet, sorghum and maize. 2.1.2 Climate: The climate is largely semi-arid with only one rainy season followed by a 7-month dry season. The wet season extends from June to October. Average daily temperatures are 28.2° C in the dry season and 28° C in the wet season. Low levels of soil moisture prevailing in September and October, adversely effect crops. 2.1.3 Agro-ecological zones: Based on the rainfall pattern, there are three main agro-ecological zones namely Sahelian, Sudan-Sahelian and Sudanian-Guinean zones. The Sahelian Zone has a Sahelian microclimate with open dry season savannah vegetation. Rainfall is erratic and less than 600-mm total annually, with an effective crop-growing season of no more than 79 days. Soils have low water holding capacity and this is a high-risk area for long-duration crops. Thus early maturing, short-duration and drought tolerant crops are cultivated in this zone. Cassava, cowpea and sesame are the main crops with millet grown only intermittently because of the risk of bird damage. The Sudan-Sahelian Zone lies within the 600 to 900 mm rainfall isohyets. With a longer growing season, 79 to 119 days, the upland areas are well suited to groundnut, sorghum and cotton. The flood plains along The Gambia River and associated lowland valley systems are an excellent rice growing catchment under tidal swamp irrigation. The Sudanian-Guinean Zone lies within the 900 to 1200 mm rainfall isohyets. The growing season is 120-150 days and in normal seasons full crop water requirements are met throughout the growing season. In some lowland areas the long dry season results in increased salinization of The Gambia River and an emphasis on saline tolerant rice varieties. The principal crops cultivated in this agro-ecology are early millet, groundnut, rice (rain-fed upland and lowland, irrigated lowland, mangrove and mangrove salt-tolerant), maize, vegetable, cowpea and sesame. 2.2 Social Organisation of Production

2.2.1 Agriculture is communally oriented among Gambian farmers. It is therefore important to develop a basic understanding of Gambian rural families in analysing the farming systems that have evolved. 2.2.2 Compound: The basic unit of Gambian agriculture is the compound, which generally consists of a collection of families related by blood or marriage and living together. The compound is the structure that serves as the arena for family interactions. Very often large compounds will split into more than one work unit. The responsibility for the maintenance of social and productive co-operation lies with the compound head who is the eldest male member. The sub-units of the compound are dabada and sinkiro. 2.2.3 Dabada: is defined as the farm production unit in which two or more individuals (within the same compound) cultivate farms, outside the communal farm, for their individual needs.

3

2.2.4 Sinkiros: refer to cooking and consumption group within or outside the compound. Sinkiros provide basis for the compound’s organisation of storage, processing and consumption of foods. The women in the Sinkiro group are responsible for cooking on rotational basis. In many cases, the dabada unit coincides with the Sinkiro, as members not only work together, but may also eat together. 2.2.5 Two types of farm units are common: the communal farm called Maruo and the individual or private farm known as Kamanyango. Maruo consists of a set of fields on which all members of the compound unit, usually men and women separately, cultivate together to provide the bulk of food required for the subsistence of the compound members. The compound head makes allocation of food and produce from the granary to each participating family according to its needs. Kamanyango farm: Individual members (male or female) of the compound can clear land and create private farms (Kamanyango) on which they work to produce food and other crops to provide for the extra needs of their immediate families and to supplement the main portion received from the central pool. The Compound head may assign certain days in the week or hours of the day for communal work, to ensure that both the interest of compound and those of its individual members are catered for.

2.3 Land Tenure 2.3.1 In The Gambia, each village has an identifiable area of land that falls within the jurisdiction of its own headman (alkalo). The land is usually not legally registered. Families or individuals in a village establish claim over a piece of land by tracing their decent, more often patri-linearly to the first settlers. 2.3.2 The alkalo has the authority to allocate land to compounds in the village. Any compound head has the right to clear unclaimed land within the village’s jurisdiction. The piece of land is thereafter held in perpetuity by the compound that first cleared it. The inheritance laws provide for the transfer of compound land to the next eldest male member of the family in case the compound head dies; thus stabilising the degree of land fragmentation that is allowed to occur. To a large extent, customary law does not allow land to be sold, mortgaged or be used as collateral for loans. 2.3.3 There are three main channels for a woman to obtain land (alluvial rice land or swamp): (i) through her husband, the fields so acquired have usually been worked by her mother in-law; (ii) the compound can give pieces of land to daughters as part of their dowries, in which case, this parcel of land is usually removed from that of the original compound owners; and (iii) rice land can be acquired on loan from friends in other compounds who have surplus land. The system is thus flexible enough to supply land, especially rice land, required by women.

2.4 Aquaculture 2.4.1 The earliest freshwater aquaculture trials were conducted in the 1970s involving the culturing of Tilapia in small family fishponds by farmers in their rice fields in the fresh water zone of the river. The Catholic Relief Services (CRS) with assistance from the US Peace Corps Volunteers (PCVs) and the Fisheries Department has also conducted culture trials. 2.4.2 Aquaculture activities are currently being carried out by the Department of Fisheries in co-operation with DOSA. The pilot fish culture ponds at Sapu in the Central River Division is part of the continuing effort of the Department to assist farmers improve their

4

incomes and nutritional status. Several communities in the area have expressed interest in fish farming but lack adequate knowledge of the cultural practices associated with fish farming. Clarias senegalensis and Tilapia spp. are the species to be considered for future culture in the trial rice fields of the project. 2.5 Poverty Status

Poverty in The Gambia manifests itself in the form of multiple deprivations. Its overall incidence has increased progressively over the past two decades, with the extremely poor category increasing from 18% to 51% and the poor from 16% to 18%. Rural women constitute the poorest population group (80%). About 91 percent of the extremely poor in The Gambia are engaged in agricultural activities for their subsistence and income. Agriculture is the sole means of income generation for the majority of rural households below the poverty line. Income distribution remains dualistic, with an appreciable gap between rural and urban areas. An estimated 23% of households and 33% of the population in the urban areas live below the food poverty line (the level of income just sufficient to buy a minimum food basket, equivalent to 2,700 cal/day per adult), compared to 37% and 69% respectively in rural areas. Within rural areas, poverty prevalence rates vary considerably between the Administrative Divisions, with the highest levels of extreme poverty, around 70%, being found in Lower, Upper River, North Bank and Central River Divisions. The Western Division has a slightly lower rate of around 50%, while the prevalence in Kanifing Municipality Council and Banjul City Council is considerably less at 20%. 2.6 Gender Issues 2.6.1 The Gambia, which has a population of 1.48 million with a great portion of women ha a high population growth rate (2.8%). Women represent 45.7% and youth below 15 years constitute 42% of the total population. Currently, women represent over 45% of labour force. However, in the low land agriculture areas, such as the Central River Division (proposed project sites) the women farmers represent about 90-95% of the swamp rice growers and about two-third of the membership of the executive committees of water user groups and Apex Association. Women are mainly engaged in agricultural activities in rural areas as well as informal activities in urban areas for subsistence and income. They play a key role in poverty reduction initiatives. However, with regard to the perspectives of economic opportunities there is bias in Gambian society in favour of men due to social and cultural considerations. In most Gambian rural households, the male head has the responsibility for providing food for the family, although all able-bodied adults must contribute to subsistence crop production. In the farming system, which often incorporates rice production, women have traditionally been responsible for lowland rice production, while men concentrate on the upland crops. Women commonly own separate rice fields for personal cash income and men grow groundnut for the same reason. A few exceptions, however, exist e.g. in the Upper River Division women cultivate substantial areas of groundnuts while in the Pacchar area (near Sapu), men are responsible for pump-irrigated rice under the Maruo unit. 2.6.2 Although the number of children at school is increasing, adult literacy rates are low, at 32% for women and 46.2% for men. Enrolment rates of girls I secondary education is sill low (31%). The majority of the rural population does not have adequate access to health services. This explains why, the proportion of rural youth remaining in the villages is declining, and is a major factor contributing to the rural-urban drift. The Government of The Gambia (GOTG) places high priority on keeping the youth in the villages or encouraging the return of those in the urban areas. The Government, in acknowledgement of the vital role of

5

women in the socio-economic development process, has taken some measures to correct the disadvantaged situation of women. A National Women’s Council was established to advice government on women’s affairs and to mainstream women’s issues into the national development process. Within the Department of State for Agriculture, this responsibility has been assigned to the Department of Cooperation. The Department of Community Development (DCD), which is housed under the Department of State for Local Government assumes the role of gender awareness at community level. 2.7 HIV/AIDS and Malaria Issues 2.7.1 The Gambia is considered as low HIV/AIDS affected country. The HIV/AIDS prevalence in The Gambia has tripled during the last decade from 0.7% in 1995 and 1.2% in 2001 to 2.1% in 2004. GOTG has established a national HIV/AIDS Secretariat in the office of the President, to support community-based to empower stakeholders to plan, implement, monitor, evaluate and document initiatives that they envisage would be more responsive in the fight against HIV/AIDS. The HIV/AIDS Control Programme is implemented through Divisional Health Teams. Under the programme, paramedics such as traditional birth attendants and village health workers are trained. The programme is implemented in collaboration with NGOs such as Action Aid, RAID (African Network for information and action against Drugs), Agency for the Development of Women and Children ADWAC, The Gambia Red Cross Society GRCS. There is also a unit in DOSA (and all other Departments) catering for the technical and financial resource requirements of its extension staff in carrying out HIV/AIDS campaigns amongst farmers. 2.7.2 Malaria accounts for nearly 78% of all outpatients and 40% of all visits to Maternal and Child Health (MCH) clinics. Its incidence is higher in rice growing areas and constitutes a serious disincentive to rice growing in The Gambia. The government has developed a Malaria Control Program that is implemented by the District Development Committee. Some of the programme activities include conducting awareness campaigns and improving access to drugs and preventive inputs such as impregnated mosquito nets. Prevention and treatment of infections from malaria are still inadequate. The widespread of the Malaria in The Gambia is greatly affecting the labour force in rural area. 2.8 Institutional Framework

Agriculture Institutions

2.8.1 The Department of State for Agriculture (DOSA) is responsible for the agricultural sector comprising crops and livestock sub-sectors. Its primary roles are the formulation of appropriate agricultural policies and planning, and also monitoring and evaluation within the overall national development framework. DOSA comprises, in addition to its Central Management Unit (CMU), the following Departments: 1) Agricultural Services (DAS) made up of Extension, Food and Nutrition, Soil and Water Management, Agricultural Pest Management, Agricultural Communications, and Horticulture Units; 2) Livestock Services (DLS); 3) Planning (DOP), and 4) Co-operative (DOC). The Secretary of State for Agriculture also has ultimate responsibility for: 1) the National Agricultural Research Institute (NARI), and 2) The Gambia College. 2.8.2 Central Management Unit: This unit is responsible for the overall strategic management of DOSA and coordinates operational activities. It consists essentially of the Permanent Secretary, the three deputies in charge of Programmes/Projects, administration and

6

finance, and the Director of the Department of Planning (DOP). The Central Management Unit lacks well-trained professional and supporting staff, updated equipment for internal and external communication, modern office equipment and logistics. 2.8.3 Department of Planning (DOP): This department provides policy advice to the Secretary of State (SOS), and helps in identifying and preparing agricultural investment programmes and projects. It collects extensive agricultural data and its national agricultural data centre, conducts national agricultural sample surveys and publishes a statistical yearbook of Gambian agriculture. In addition, it monitors ongoing investment operations and conducts selected evaluation studies. It has four sections namely: Project Planning, Policy Formulation, National Agricultural Statistics and Monitoring and Evaluation. The Department has 3 MSc. Specialist 17 BSc/Diploma officers, 23 secretaries & supporting staff and 70 field enumerators working under the Statistics Centre. The capacity of the DOP is limited because it lacks trained personnel to cope with its functions. It also lacks modern office equipment and logistical support. Upgrading its staff through specialized training is highly needed, if it is to provide M&E support to the project and the sector as a whole. 2.8.4 The Department of Agricultural Services (DAS): DAS is the largest department in DOSA and the main interface with farmers. In each of the six Agricultural Divisions there is a Divisional Agriculture Office (DAO), headed by a Divisional Agricultural Coordinator (DAC). An assistant and 4 Subject Matter Specialists (SMS) in crop production, pests and diseases, communications, and food and nutrition support the DAC. Each agricultural division is divided into districts in which the focal point for extension work is the District Extension Centre (DEC), supervised by a District Extension Supervisor (DES). The DES is responsible for the field staff, including Village Extension Workers (VEWs) who operate from Village Extension Centres (VEC). At the level of the DEC, there is an Animal Traction Instructor (ATI) and an assistant ATI. There are currently 25 DECs, and 25 VEWs in the Gambia with only one female extension worker. Initially, DAS provided only crop extension services, but now it is moving towards the concept of polyvalent extension workers, whereby crop and livestock extension are to be merged into one service. The Department has staff strength of 161, eight with advanced degrees in extension services, 36 subject matter specialists with a minimum of BSc. Degree, 127 extension workers and supporting staff. Most of the senior staff members are due to retire in the next two-three years and would leave a vacuum that has to be filled. 2.8.5 The DAS uses the Training and Visit (T&V) system of extension. Each Village Extension Worker (VEW) is responsible for providing extension services to some 500 farmers formed in contact groups of 25 farmers. This represents 25-40 farming households. However, the small number of available VEWs means that, the actual ratio is over 300 households per VEW. Each VEW is required to contact each group at least once a month. At the present time, much emphasis is being placed on self-reliance at farmer level through farmer training in the form of demonstrations, on-farm trails and communal (kafo) farms. Regular training for VEWs is carried out during Fortnightly Training Meetings (FTM) and Monthly Technology Review Meetings (MTRM), which are attended by SMSs and research staff from NARI. The FTM and the MTRM are the main sources of extension messages for VEWs. Contact farmers have been selected and trained. DAS lacks enough logistical support to cover the country. It also needs more training programmes for its staff together with equipment and extension materials. 2.8.6 Agricultural Communication Unit (ACU): ACU produces visual aids for use by Views and liaises with other agencies on matters of agricultural and development oriented

7

communication. The unit has 8 trained staff, 10 supporting staff & equipment currently sufficient to carry out its function. 2.8.7 Soil and Water Management Unit (SWMU): The Soil and Water Management Unit (SWMU) is responsible for solving soil and water management and conservation problems. The services it provides include field investigations and surveys, design and planning, and construction support to sub-projects. The unit consists of six sections namely: 1) Engineering; 2) Soil and Land Evaluation; 3) Agronomy; 4) Mechanical; 5) Cartography; and 6) Monitoring and Evaluation. The Unit has 57 staff, 27 of whom are professional/technical with a minimum of BSc. Degree. The SWMU has its main office at Yundum, near Banjul, but maintains temporary field stations during operations. Therefore it is recommended that a field office be established in Sapu to strike a better balance in service provision to these areas. Sapu is base to one of the two research stations of NARI and the Seed Technology Unit. This would significantly improve the efficiency of the unit and reduce the time and cost of travelling. It has sufficient staff to man these two field stations. The unit needs additional logistical support and office equipment. Advanced and refresher courses are also needed to upgrade the knowledge of its staff. 2.8.8 National Agricultural Research Institute (NARI): NARI has six main programmes and two experimental sites. It co-operates closely with other national and sub-regional programmes including: International Crop Research Institute for Semi-Arid Tropics; International Institute for Tropical Agriculture; Semi-Arid Food Grain Research and Development, and West African Rice Development Authority (WARDA). In addition to developmental work on a range of cereal crops, NARI has a programme for root crop development, which has introduced a useful number of sweet potato and cassava. The Institute has adequate trained and experienced staff and research facilities (Pest Management Food Chemistry, and Soils Laboratories and Seed drying and processing Plant). The research Institute has 12 researchers 6 with PhD Degree, 18 with MSc Degree, 4 with BSc degree, 28 high diploma holders and 10 research assistants and supporting staff. Currently, NARI has 6 staff under PhD. Degree training in Plant Breeding, Soil Science, Crop Physiology, Agronomy, Agricultural Engineering and Molecular Biology. In view of its field knowledge, NARI has acquired a proven experience in developing farmer’s friendly technologies in rice production. The present project will benefit from the good research results in swamp rice farming from NARI. 2.8.9 Seed Technology Unit (STU): NARI is currently responsible for the Seed Technology Unit based in Sapu Research Station. STU has rain-fed and irrigated seed production plots, a small seed cleaning plant (1 ton/hour), and a seed laboratory. It is responsible for the production of foundation seed and for the multiplication of registered and certified seed. Contract farmers carry this out with STU taking responsibility for quality control and certification. STU has adequate capacity to meet the seed requirement of the Farmer Managed Tidal Irrigation Rice Project. 2.8.10 Fisheries Division: is one of the five divisions under the Department of Fisheries and Environment invested with the responsibility of planning, management and development of the fisheries sector and natural resources and environment. The Division of fisheries, which is the main interface with small fishermen and rice fishing farmers, is responsible for Extension and Development of fisheries activities. It has sufficient staff to carry demonstration and extensions activities but needs additional logistical support and office equipment. Advanced and refresher courses are also needed to upgrade the knowledge of its staff.

8

Credit Institutions 2.8.11 Social Development Fund (SDF): The Government of The Gambia (GOTG) institutionalised The Gambia Social Development Fund (SDF) in February 1998 under the sponsorship of the African Development Bank, as an autonomous umbrella-funding agency for poverty alleviation activities in the country. It is designed to work with Decentralised Finance Institutions (DFIs), Community Based Organizations (CBOs), Non-Government Organizations (NGOs) and Public Service Institutions (PSIs) in the delivery of its services. SDF uses a participatory demand-driven approach as its main intervention strategy in channelling resources to the poor in the most effective, efficient and timely manner. The main target beneficiaries are women, youths and the handicaps. These target beneficiaries fully participate in the identification, planning, implementation, monitoring and evaluation of sub-projects geared towards addressing the community/individuals' needs and concerns. The total loan portfolio for SDF is of a total amount of GMD 24 million with a repayment rate of 97%. The loans have been made to the beneficiaries through a total number of 20 Village Savings and Credit Associations (VISACAs), 6 NGOs and the Indigenous Advisory Services (IBAS). A total number of 1,006 groups consisting of 65,918 members of which 52,903 (80.3%) are women have benefited from the SDF loans. 2.8.12 Village Savings and Credit Association (VISACA): Village Savings and Credit Associations (VISACAs) were initiated in the 1980’s, as a project in the Department of State for Agriculture (DOSA) as a mechanism for encouraging farmers at the Jahally Pacchar Smallholder Rice project (co-financed by the Bank Group) to save their increased incomes resulting from the project. Following their considerable success over recent years, the associations are now fully supported by the Central Bank as rural financial institutions. The VISACA approach is strictly participatory with target groups playing the lead role in the affairs of the village “banks”, which they manage. The Village General Assembly, which is responsible for defining all credit policies of the bank, selects cashiers, a management committee and internal auditors. The management committee is responsible for all loan appraisals, disbursements and loan follow-up and recovery. Membership is not restricted to members of the immediate village but open to all upon the payment of a Dalasis 10-20 membership fee i.e. individuals in nearby and satellite villages can also become members. Women make up half the membership of the VISACAs and the VISACA Management Committees. 2.8.13 The VISACAs nationwide have received capacity building support from the IFAD financed Rural Finance and Community Initiatives Project. They are now required to provide quality service to their clients and also provide quality reports including financial statements to the Central Bank of The Gambia. According to the recent examination conducted by Central Bank in November 2004, most VISACAs have shown improvements in performance over the last three years. Record keeping is satisfactory. Recovery rate has reached 92 per cent. Financial performance has improved as exhibited by the various financial ratios. In addition portfolio management has significantly improved as indicated by the decline in portfolio at risk to 7% in 2004 from 28% and 34% in 2003 and 2002 respectively. 2.8.14 The Indigenous Business Advisory Services (IBAS): IBAS was established by the government in 1976 to develop and promote indigenous entrepreneurship within the

9

Small and Medium Scale (SME) sub-sector and also cater for the informal sector. The primary role of IBAS is to render training, Business Advisory services, consultancy and credit delivery to SMEs both in the rural and urban areas. Currently, IBAS has five regional branches with sixteen (16) professional staff. It has a credit portfolio of Dalasis 2 million (US$100,000). Due to the limited funds available for credit provision, IBAS has been able to serve about 30% of applications .. Non-Governmental Organisations 2.8.15 Non-Governmental Organisations (NGOs): It is estimated that some 100 local and overseas-based NGOs are operating in The Gambia. A number of the larger ones such as Action Aid The Gambia (AATG), Catholic Relief Services (CRS) and Save the Children Fund (SCF-USA) have active agricultural sections. Typically these NGOs concentrate on a particular activity such as seed multiplication and women’s horticultural gardens. However, many NGOs also provide general agricultural advice to the communities in which they work. Registered NGOs have formed an inter-NGO entity, the Association of Non-Governmental Organisations (TANGO). Co-ordination of governmental and NGO activities is the responsibility of the Advisory Committee for the Co-ordination of Non-Governmental Organisations (ACCNO). NGOs, particularly those that have been operating in the country for some time, have made significant contributions to The Gambia’s development efforts not only by complementing the government services, but also by playing an innovative and demonstrative role. 2.9 Agricultural Sector Constraints 2.9.1 Farming systems in the country are exposed to a set of variable constraints. Some of these are physical, such as soil, rainfall and salinity. Others include availability of farm power, such as human labour and mechanisation, lack of finance, lack of education on the part of the farmers and also institutional constraints such as lack of structured systems for input delivery, marketing and processing. 2.9.2 Inadequate and erratic distribution of rainfall is a major constraint to crop production directly influencing upland production systems and also indirectly affecting the lowlands. Afforestation of steep lands, contour bunding of uplands and dyking of lowlands are some of the measures adopted to mitigate the negative impact of low rainfall and imbalances of the hydrological cycle. These constraints emphasise the importance of irrigation and drainage schemes for improving and securing the production of food crops in the lowlands. 2.10 Agricultural Development Policy and Strategy 2.10.1 The Gambia incorporated Vision 2020 strongly relies on the Agriculture and Natural Resources (ANR) sector to propel the country into the midst of medium income countries by the year 2020. To achieve this overall objective, it has set specific objectives for the ANR sector, focusing chiefly on the following: 1) increase ANR output of both domestic and export produce in order to ensure food security and generate earnings of foreign exchange to finance other aspects of the development process; 2) create employment and generate income for the majority of the rural population who are largely dependent on ANR; 3) diversify the ANR base to facilitate the production of a wider range of food and export produce in order to reduce the fluctuations and uncertainties associated with rural household incomes and export earnings; 4) reduce disparities between rural-urban incomes as well as between men and women, curb rural-urban migration and accelerate the pace of development of the rural

10

sector; 5) provide effective linkages between the ANR sector and the rest of the economy such that developments in the other sectors, particularly manufacturing and tourism, are founded on a firm and diversified ANR base capable of progressively releasing both labour and financial services to other sectors of the economy; and 6) create a sustainable and balanced mix between rain-fed and irrigated agriculture, thus ensuring an optimal use of natural resources of surface and groundwater, animal, aqua-culture, and crop production as well as between chemical and organic inputs and the use of agricultural by-products. 2.10.2 The irrigation sub-sector policy of The Gambia is spelt out under the Water Resources Policy (WRP). The WRP provides for the development and management of water supplies in urban and rural areas for domestic consumption and production operations. Specific aims include optimum use of both ground and surface water resources for agricultural, industrial and domestic purposes, adequate quantities of good quality water for the population, promotion of the rational use and maintenance of the quality of water, and strengthening the capacity of both staff and public to better understand and appreciate the weather and climate as basis for reliable advice to improve agricultural production and resource management. Regulation in the water resources sector is under the Water Resources Act of 1979. 2.10.3 To achieve these objectives, the Government has laid out a comprehensive strategy including, among other things, fostering productivity through improvement of research, establishing producers associations and building the capacity of their members, encouraging direct investment in agriculture, developing peri-urban agriculture for greater commercialisation of the sector, improving access and quality of groundwater for both drinking and agriculture, improving the performance of agricultural marketing (processing, packaging and distribution), fostering financial intermediation for effecting lending to the rural sector, and establishing an effective Food Information System (FIS) for greater food security. The Government’s sector objectives are in line with the Bank Group’s Vision and Strategy. 2.11 Donor Interventions 2.11.1 Under the framework of the strategy for agricultural development, various projects and studies are being implemented through the financial and technical support of various donors including the Bank Group. Donor projects in the agricultural sector are co-ordinated by DOSA. 2.11.2 The Bank Group's intervention in the agriculture sector focused on food production increase. This was mainly through the finance of the following operations: (i) Jahaly-Pacharr Smallholder Rice Project (UA 4.24 million) approved in 1982; (ii) Lowland Agricultural Development Programme (UA 4.00 million) approved in 1996 and co-financed with IFAD, (iii) Peri-Urban Smallholder Agricultural Development Project (UA 5.07 million) approved in 1999, (iv) Artisanal Fisheries Development Project (UA 2.9 million) approved in 2001 co-financed with BADEA, (v) Emergency relief to floods victims in 2000, (vi) Emergency relief to drought victims in 2003, (vii) Multinational NERICA Rice Dissemination Project (UA 1.56 million) approved in 2003, (viii) Integrated Watershed Management Project (UA 4.95 million) approved in 2004. The activities carried under these projects are based on demand driven community participation. Target groups are smallholder farmers, traditional swamp, rice growers and disadvantaged groups of the society such women and youth. The two emergency relief operations to floods and drought victim have proved that the irrigation development remains the long-term solution to The Gambia’s Agricultural development.

11

2.11.3 The National Seed Development Project (NSDP) financed by the UNDP and FAO aims to assist The Gambia Government to develop a national seed programme to serve as a sustainable pathway to enhancing farm productivity, improving rural incomes and food security among small-scale farmers and contributing towards an increase in overall food production. In the case of Rural Finance and Community Initiative Project (RFCIP) financed by IFAD and the Government of The Gambia, the objectives are to increase access to nutritionally diverse food and promote the means of enhancing rural incomes; to streamline and expand rural financial services; and to promote community self-help activities. Japanese Grant for the increase of food production aims to increase food production and income to the farming community. The assistance is in kind. The Kuwait Fund finances the Central River Division- North Rice Development Project. The project aims to increase productivity and production of rice in the North Bank of the Central River Division thus improving food security of the target beneficiaries. This would be attained through the development of 1206 hectares of agricultural land for tidal and low lift pump irrigation The Republic of China (Taiwan) is providing technical assistance to rice growers on 340 ha in several locations through out the country in the form of selected seed verities, some land preparation equipment and demonstration sites. 3. THE IRRIGATION AND RICE SUB-SECTORS 3.1 The Irrigation Sub-sector 3.1.1 Achievements of the irrigation projects over the last three decades are limited. Only about 2,300 ha are currently operational due to limited local finance to carry centralized maintenance and lack of sufficient number of locally skilled managers and technicians. These are mainly surface systems for swamp rice. A limited area is under trickle irrigation by an export horticulture production operation. Earlier attempts to establish sprinkler systems for small-scale vegetable growing under communal schemes in the WD were not successful. Similarly, not many of the privately owned horticultural schemes of 200ha and over developed in the WD, now exist. 3.1.2 Smallholders in the Gambia have grown irrigated rice since 1966 when a Taiwanese mission first initiated the development of small low-lift pump irrigated perimeters (dyked lowland fields) located in swamp areas adjacent to the main river or its tributaries. These ranged in size from 1 to 15 ha. In the 1970s, projects financed by the World Bank (1973-76) and the People’s Republic of China (1975-79) added more than 1,900 ha of irrigated land in the project area and, by 1980, a total of about 2,600 ha, on 298 different perimeters, was under command from such systems. All these schemes were constructed on a similar basis with individual holdings of 0.4 – 0.5 ha. In general, farmers were responsible for initial land clearance and for the construction of internal bunds and canals. Farmer groups were provided with pumps and power tillers. A common weakness of most schemes has been the omission of internal drainage systems, poor access, lack of flood protection works and high canal seepage losses. 3.1.3 Three major rice irrigation projects were implemented in the CRD where the conditions for rice cultivation by smallholder farmers are favourable. The Jahally-Pacchar Smallholder Project (JPSP) was financed by ADB, IFAD, KfW, the Netherlands Government and WFP. The command area of the project was 1454 ha and consolidated in two locations. It included 894ha under irrigation solely by gravity (tidal) and 560ha by a combination of lift/pumped and gravity irrigation and drainage. A Project Management Unit centrally

12

controlled the implementation of the project, which was responsible for land development and also land preparation and supply of irrigation water. The project by virtue of its size and design concept involved the installation of large diesel-powered pump sets, lined canals and tractors for land preparation at a cost of US$16.99 million (US$11,700/ha). It encompassed farmers of heterogeneous ethnic origin, with differing commitments to rice farming. Farmers also played a relatively limited role, apart from following a schedule of planting and harvesting. Cropping intensity was stretched to the maximum leaving participants very little scope for other activities. The project paid a lot more attention to land development, land preparation, irrigation, supply of inputs and scheduling of farm operations than to crop husbandry practices, leading to declining yields and consequently poor delivery of those services. Attempts were made at converting portions under pumped command to tidal command. It was obvious that mechanical land preparation and pump lift irrigation were expensive options outside the management competence of the farmers without project support. Inability of government to maintain land preparation equipment and credit for farm inputs and processing equipment also contributed to reduce this project’s impact. The project has also shown that the farmers could not afford the high cost of maintenance of the irrigation infrastructure and equipments due the importation of the spare parts and the level of training required. All of the foregoing indicates that JPSP was a peculiar irrigation project in the Gambia and may not be replicated in whole. 3.1.4 The Rice Development Project (RIDEP) was financed by ADB to rehabilitate small-irrigated rice projects, in the CRD (between Kuntaur and Georgetown), which were developed and managed initially with technical assistance support of Taiwan and more recently by the People’s Republic of China. The area envisaged extends to about 1,200 ha scattered over 44 perimeters on both banks of the river. The original development was to enable double cropping through pump irrigation. Years of neglect led to pump breakdowns, damaged canals and bush re-growth within the paddies. The project redesigned the canals and attempted to optimise the siting of pump houses. The plan was for the project to develop 850 ha of pump irrigation, 100 ha of tidal irrigation and 400 ha of rain-fed uplands. The implementation of the project was not successful since only 352 ha of pumped irrigation was developed at a cost of US$7.0 million (average cost of US$19,900 per hectare). This was due to poor management and inappropriate field designs and lack of trained local staff as well as delays in procurement of land development and preparation equipment. 3.1.5 The Small-Scale Water Control Project (SSWCP) Small was financed by IFAD: SSWCP in the CRD but benefited from some of the lessons learnt from JPSP & RIDEP. Development costs were reduced to US$8,000/ha (US$3.6 million for 450 ha) and greater attention paid to the sustainability of the project. It was thus a big point of departure from JPSP & RIDEP in that it avoided pumped irrigation (instead, relying on tidal and gravity conveyance of irrigation water) and mechanical land preparation. The project design also provided for more involvement of farmers in the identification of the project site and in the choice of various project components. A modular approach was adopted towards land development, with each module developed serving a demonstrative purpose to the farmers and a catalyst for the development of other modules. The implementation of the SSWCP required significant inputs from the line agency of DOSA - the Department of Agricultural Services –, which administered the project through its field office in the area. It placed greater emphasis on the involvement of farmers in various land development activities organised on the basis of groups served by particular tertiary canals financed under the “food for work” programme of the World Food Programme (WFP). No heavy machinery was used. Operation of the irrigation system was by group action. The implementation of the project was however very slow and its

13

achievements limited due to poor site selection. The project only fully developed 200 ha and semi-developed another 250 ha. 3.1.6 The main lessons learnt from previous projects can be summarized as follows: (i) large centralised schemes requiring heavy reliance on imported technology and foreign technical assistance are not sustainable especially after the withdrawal of the external donor support due to limited involvement of nationals and hence poor technology transfer; (ii) pump irrigation is economically unsustainable; (iii) a coherent lowland development strategy is lacking, leading to enclave projects which create their own sets of problems; and (iv) a simple and low cost irrigation technology are more sustainable as operational and maintenance costs are affordable to beneficiaries. 3.1.7 One of the important lessons that high yield production of rice can be achieved by small-scale farmers under irrigation schemes, improved seeds, and strengthened farmers’ groups with access to credit. Under such conditions, practices in the Central River Division indicated that the average yield of rice reaches 5.5 tons per ha. In the Central River Division, about 20,000 farmers are well organised into formal groups of about 20 members under a National Association (Apex), that is also managing a revolving fund for commercial input supplies to its members. There is thus a good opportunity to build on the successes of this proven farmer organisation to provide and sustain irrigation infrastructure. 3.2 Rice Sub-Sector 3.2.1 Rice has long been an important grain in The Gambia, partly because its cultivation in seasonally flooded swamps has provided food security. In the rural areas, grain production has accounted for 60 – 80 % of minimum traditional requirements, with locally produced rice accounting for an average 25% of this requirement. Overall national shortfalls are made up from both commercial and food aid imports. The Gambia’s annual milled-rice requirement is about 158,000 metric tons, the highest per capita rice consumption (107 kg) among the sahelian countries, and the third highest in West Africa. 66% of household income is spent on food and about 30.9% of food expenditure on cereals and cereal products, of which about 83.2% is rice. Technical and physical constraints such as rain-fed agriculture, hand cultivation, poor quality seeds, inadequate rate of fertilizer, poor plant stand, inadequate soil and water management, limit both yield and production. The total rice area cultivated in the Gambia averaged 17,000 ha between 1999 and 2003, producing on the average about 19,500 tons of rice (milled), significantly below the total national requirement. Consequently, cereal imports in the Gambia are exclusively rice. In 2003, a total of 136,000 tons valued at US$ 38.8 million, was imported. 3.2.2 Rice is grown in swamp, rain fed, lowland irrigated and upland ecologies. Traditionally, women carry out rice-growing activities during the wet season using hand cultivation, which still remains the predominant system of production. Two crops of rice are possible per year with proper water control and management, field mechanization and use of suitable high-yielding varieties. The use of water control techniques under tidal irrigation can increase production three-fold. Other experiences showed that yield could be raised from as low as one metric ton to five metric tons per hectare, with the combination of mechanization and irrigation practices. Using a fertilizer rate of 100 to 150 units of nitrogen, yields of up to 8 metric tons of paddy per hectare, were achieved in the schemes supported by Chinese Technical Assistance.

14

3.2.3 Currently, there are more than enough varieties within the country to satisfy the yield level requirement of at least 5 metric tons for rice grown under irrigated conditions. Varieties grown by farmers include TS14 and TS 19 (Chinese) in the Jahaly–Pacchar area since 1995, yield potential is 4 -7 t/ha; and RASI developed by NARI widely used and preferred by the farmers in the project zone. The Technical Assistance of the Republic of China (ROC) has supported the seed supply (non-certified) since 1996. Petty traders, who are mainly women, sell mainly local rice. In general, farmers mill their own production before selling to traders. In rural areas, the marketing is very informal and rudimentary with no grading or weighing scale. Purchases are made by plate and not standardised. No cash payments are made at the time of paddy delivery until the rice is milled. The volume of transactions is based on visual estimation at all levels of the market chain. 4. THE PROJECT

4.1 Project Concept and Rationale 4.1.1 The Second Strategy for Poverty Alleviation (SPA II) of 2002, which is a “home grown” version of Poverty Reduction Strategy Paper (PRSP) relies on a two-pronged approach combining: a) macroeconomic and sectoral policies designed to accelerate growth and improve social sector services; and b) promotion of new attitudes, within a people-centred participatory approach, to involve local communities in managing their development. Another objective of the SPA II is the promotion of building capacity of the local communities and civil society organizations to play an active role in poverty reduction. The starting point of the Strategy is its realization that sustainable development requires responsiveness to the perception and aspirations of the communities. 4.1.2 There is high potential for increasing local rice production because of the presence of favourable natural resource base, especially in the lowlands. As the development of large-scale pump-irrigation schemes requires highly skilled manpower and involves large operation and maintenance costs, the Government is committed to support development of simple irrigation techniques such as tidal irrigation. Tidal irrigation uses the tidal natural phenomena along with simple infrastructure to boost domestic rice production. The farmers are currently using tidal irrigation at smaller scale. The proposed project will thus develop the infrastructure to enlarge the irrigated area and increase the number of beneficiaries. The proposed project is addressing the identified constraints by providing a basis for sustainable rice development in the lowlands through low-cost, traditional water management, use of improved production inputs and post-harvest methods. The project will contribute to the reduction to the import of rice by 5% annually. 4.13 The project is based on a participatory approach from the initial stages of its identification, preparation and appraisal where meetings were held with all categories of beneficiaries specially smallholder women rice farmers and farmers’ organizations. Furthermore Water Users Associations made up of the beneficiaries themselves and the Apex Association were consulted. Farmer groups were able to express their views and to be considered in the design of the project. The project design is mainly built on the experience and know-how of the target beneficiaries who are presently engaged in lowland rice production under pump and partly tidal irrigation. Individual and group discussions were held with farmers on the fields, women traders in the markets, millers at work and representatives of NGOs and bilateral and multilateral donors as well as local community elders and parliamentarians.

15

4.1.4 The design also builds on the experiences of previous rice projects in The Gambia particularly from the nation-wide Lowland Rice Development Programme (LADEP) co-financed by the Bank and IFAD and also Rice Development Project and the Jahaly-Pacchar Smallholder Project. LADEP was successfully completed within the scheduled time of 8 years, attained a disbursement ratio of 98% and more that 100% of the planned project targets. The achievements of LADEP were mainly attributed to the use of simple technologies in land management and the significant farmer participation in project implementation. 4.2 Project Area and Beneficiaries

(A) Project Area 4.2.1 The project is located within two districts (Niamina East and Fulladu West) in the southern bank of the Central River Division (CRD), 180Km east of Banjul. The population of the Central River Division (CRD) is estimated to be 126,000 and the average size of a household is 10. Out of the current CRD population, about 102,000 are in the two project districts (Niamina East and Fulladu West). The dominant economic activity of the area is agriculture (accounting for 80% of household income). The perennial freshwater tidal rice ecological zone is wholly within the CRD and explains the concentration of irrigation projects, which have the River Gambia as source of tidal water. About 2,300 ha of irrigated land can be found on both banks of the river but mainly in the southern bank. The climate and soil nutrient levels are favourable for double rice cropping. The schemes are spread along a 52-km length of the River Gambia extending from Karantaba to Pacchar. The approximate locations of the proposed project schemes are shown in Annex 1. The area was selected on the basis of availability of fresh water, sufficient tide to apply the tidal irrigation technique and existence of tidal schemes which can be upgraded and suitable new lands that can be developed. Farmers on the existing schemes therefore already have experience of working with the tidal irrigation system. 4.2.2 The River Gambia has a catchment area of 77,054 km² divided between Senegal (70.1%), Guinea (15.4%), Gambia (13.7%) and Guinea-Bissau (less than 1%). The flow of water in the wet season is very high (peak flow of 700-2200m³/s), but in the dry season it diminishes to less than 4m3/s. The gradient of the river is so gentle that it is tidal throughout the Gambia. Water levels fluctuate semi-diurnally with each high and low tide. In the project area, high and low water levels are respectively 1.70 and 0.60m above Gambian Datum (AGD) in the wet season and 1.55 and 0.55m (AGD) in the dry season. Average high water levels range from 1.39m (AGD) to 1.92m (AGD) and average low water levels between 0.34m (AGD) and 1.27m (AGD). These levels determine which of the surrounding areas may be irrigated/drained. The River Gambia is also subject to seawater intrusion. The saline front (defined by the salt concentration limit for agricultural purposes of 1 part per million) oscillates between 103km (Tendaba) in the rainy season and 250km (Kuntaur) in the dry season and is strongly influenced by freshwater flows from the upper reaches of the river. The project area however falls in the perennially freshwater zone. 4.2.3 The Organisation de la Mise en Valeur du Fleuve Gambie (OMVG) member states commissioned the Gambia River Basin Hydraulic Master Plan study to define the most profitable hydropower sites that are also least environmentally harmful with the aim of integrating electricity production and transmission investments in the OMVG member states. Based on the results, the Sambangalou dam site in Senegal was selected at the September 1997

16

OMVG Heads of State Conference. It may be concluded from the study that the proposed dam will positively affect the FMRP, since the saline front would recede further from the project area and would allow for the extraction of water for the irrigation, in the basin, of about 22,000 ha, which is about four times the present developed land. Most of the additional land, which can be developed after the dam construction, will be in The Gambia. There is an expected drop in average high water level (139-192cm) of about 4cm i.e. less than 3% of average high water levels at the FMRP sites but this is considered insignificant and would not affect tidal supply to the FMRP schemes. Further, the drop occurs in the wet season, a period of low demand for irrigation. In the dry season there is even more fresh water available for the irrigation of the second rice crop within the project. An ADF Grant of US$ 5.35 million will finance detail studies and preparation of tender documents this year.

(B) Project Beneficiaries 4.2.4 This project caters for over 2,300 farmer families. The project's target beneficiaries are smallholder rice farmers, millers, and traders including both men and women and their families. The farming population is young with ages ranging from 25 to 45 years. The family size tends to be large, averaging ten children per family. Traditionally men cultivate upland crops and women, the lowland crops. Consequently, in the project area women rice farmers constitute about 95% of the lowland rice farming communities and are the prime beneficiaries of the project. 4.2.5 Farmers on the existing sites are organized into water user groups, each with about 20 members organised along irrigation canals. For each site, one committee represents these groups, with sub-committees for loan, marketing and land allocation. For example, in the Pacchar area, the committee has 20 members, 65% of whom are women. These site associations, in the project area are represented in a 14-member apex society, the Rice Farmers Cooperatives Society (RFCS) about 60% of whom are women. The association was formed and registered in 2004. The RFCS owns a new 800kg/hour rice mill and a 7T truck acquired under an equal partnership agreement between it, DOSA, Taiwanese Government, and Action-Aid The Gambia (AATG). The project will build the capacity of individual farmers, farmer groups, site associations and the RFCS. Women are responsible for production and processing activities, as well as marketing of farm products. 4.2.6 Labour is available throughout the cultivation seasons with some shortage experienced during the transplanting and harvesting periods. Immigrant labour from Senegal and other countries help during the shortage periods. However, labour shortage is due to the old traditional way of cultivation, which requires intensive labour force. 4.2.7 Credit for farming operations is provided by Social Development Fund (SDF), which is supported by the Central Bank, through community-based Village Savings and Credit Associations (VISACAs). The repayment rate under SDF is considered satisfactory under the micro-finance best practices. Women farmers, who will be benefiting from this credit scheme, are considered as good payers of loan in the project area 4.2.8 The Sapu Agricultural Station, the proposed project headquarters, which is located 180Km east of Banjul, is well served by a network of roads, connected from the main southern bank road from Banjul. Most produce buying points in the project area are within 5Km of a road and/or track, and previous projects in the area have improved access to their rice perimeters, through the construction of graded earth access roads to facilitate the farmers’ access to their rice fields. The completion of the ongoing construction of the main southern

17

bank road from Banjul through the project area to the country’s eastern border, will contribute towards easing transportation of inputs and agricultural products in the project area. However, the project area lacks adequate numbers of basic health facilities, (3 dispensaries), water amenities (10 boreholes and 15 wells) and socio-educational infrastructure. 4.2.9 The project area is also affected by malnutrition, insufficient access to potable water and the persistence of Malaria whose rate of consultations at health centres is close to national average (40-60%). The HIV/AIDS prevalence rate is low (about 1,5% in 2004) compared to the national average (2,1% in 2004). The project will concentrate its efforts in raising awareness of the local communities on HIV/AIDS and Malaria control. 4.3 Strategic Context 4.3.1 Presently there is a sharp decline in the income of farmers due to importation of rice, which puts heavy stress on the country scarce foreign exchange resources. If this situation continues, it will cause more serious haemorrhage on the country economy and contribute to the increase in poverty. The overriding aim of the GOTG's economic development programme is the reduction of poverty. As most of the rural population earn their livelihood from farming, the GOTG is committed to a policy of improving the food security situation at the national level, diversifying the income of the rural poor, agricultural diversification, and conserving the natural resource base of the overall environment on a sustainable basis. This policy is largely to be implemented through agricultural projects concentrating on rice production, which is the staple food for the country, with emphasis on tidal irrigation, which takes advantage of the natural phenomena of the river tide.

4.3.2 This approach will contribute to broad-based poverty reduction and ensure food security by promoting selected agricultural commodities for which Gambia has or can develop comparative advantage to satisfy domestic requirements for food and to increase incomes of smallholder farmers, who are mostly women. Consequently, tidal rice production is expected to play a key role in achieving national food security, reducing rural poverty and contributing to the overall economy, given its potential for generating incomes, import substitution, and foreign exchange savings. The project is in line with the GOTG's Agricultural Development Policy and will contribute significantly to achieving the objectives of this policy. The project is also consistent with the Bank Group's vision and the Country Strategy Paper (CSP) for The Gambia, which focuses on food security and poverty reduction.

4.4 Project Objective

The sector goal is to enhance food security and reduce poverty. The project objective is to increase rice production and incomes of smallholder rice farmers in the project area. 4.5 Project Description

4.51 The project has four main components, which are: Land Development, Capacity Building, Rural Credit Support and Project Management. Under the capacity building component, ADF Grant resources will be used to finance the sub-component for institutional support to DOSA. Detailed description of these components is as follows:

(A) Land Development

18

4.5.2 Land development covers three main activities: (a) development of two new schemes at Yidda Misira and Yidda Tenda, covering 210 ha in size selected for their proximity to the fresh water regime of the River Gambia, availability of labour, access conditions, size of the catchment’s area etc.; (b) conversion of 120 ha of existing pump irrigation schemes within the Pacchar area, for tidal irrigation; and (c) provision of additional facilities on 150 ha of existing tidal irrigated schemes constructed in Sambelli Kunda, Touba, Kununku, Karantaba and 706 ha within the Pacchar areas. The project therefore covers 1186 ha of tidal irrigation area located at seven sites within the south bank of the Central River Division (CRD. 4.5.3 Development of two new schemes at Yidda Misira and Yidda Tenda, (210 ha) will involve the construction of a protection dike for each scheme (10.5km in total) to protect the irrigable area from being flooded by the river and to allow for water control; efficient dual purpose unlined irrigation/drainage channel system (1 km, 3.8 km and 10.7 km respectively of main, secondary and field channels); field bunds; the necessary irrigation and drainage structures; secure access roads; footbridges within the perimeters; and land levelling and smoothening. 4.5.4 In the areas to be converted from pump to tidal irrigation at Pacchar (120ha), existing irrigation canals will be redesigned and constructed to serve the dual purpose of irrigation and drainage (2.0 km and 4.5 km and 1.8km, respectively of unlined main and secondary); together with the necessary irrigation and drainage structures; construction of new culverts and replacement of the existing galvanised iron ones by concrete ones. 4.5.5 In the 150 ha of existing tidal irrigated schemes in Sambelli Kunda, Touba, Kununku, Karantaba the protection dikes (11.5km) will be reinforced, the main irrigation/drainage channel now located along side closed-up and a new main channel constructed within the perimeter. The aim is to shorten the length of the channel to just 1.1 km, reducing maintenance cost to the farmer and potential damage to the dike from channel leakage. The secondary (4.0km) and tertiary (13.0km) will be reinforced, together with provision of the necessary irrigation and drainage structures. 16 concrete culverts and 11-foot bridges will also be constructed to improve access into the farmers’ fields for normal husbandry practices and evacuation of produce. 4.5.6 In the existing tidal irrigated areas under the Pacchar scheme (706ha), the project will (a) construct new concrete culverts in place of the existing galvanised iron ones; and (b) carry out land levelling to convert 210ha currently suitable for only a single crop in the wet season for double cropping. The protection dike (6.6km) will also be reinforced, and the feeder canal (0.4km), main and secondary channels (25.6km), boundary drain (1.7km), drain (8.8km) and tertiary channels (46.3km) rehabilitated. The 1.0m diameter GI pipes of the two main inlet/outlet gates show signs of failure and will be replaced by concrete box culverts. 19km of main access roads will be reshaped and 7 No. 600mm diameter GI culvert pipes reconstructed in concrete. 4.5.7 Since most of the farmers are women, they will only be required to reinforce their bunds, and repair field roads which the project will provide farmer groups with small construction tools (wheelbarrows, spades etc.). This is estimated to be equivalent to about 3% of the project cost. Maintenance costs of the main irrigation works and channels will be carried out by the project and recovered from farmers as part of their water user fees. For this end the project will procure an excavator for cleaning of all water channels and reinforcement of dykes.

19

4.5.8 The provision of a secure water supply associated with improved drainage and flood control will lead to an increased cropping intensity to 167 %. The project is expected to produce 7,000 tons of milled rice annually. 4.5.9 Nine meeting sheds will be constructed (three at Pacchar and one each at the other sites), to provide a point of meeting and dissemination of information. Twenty stores (27m2 each), and 82 drying floors (50m2 each) will also be constructed to aid in processing and marketing of produce and storage of farm inputs. Since settlements are far from the farmer’s fields, the project will construct water wells on demand-driven basis. Similarly, the project will rehabilitate the 2 day-care centres at Pacchar and construct a new one at each of the six other sites to provide care for farmer’s children, most of whom are women. Farmers will pay a fee for the use of the wells and day care centre and contribute in kind and cash to cater for the children.

(B) Capacity Building

4.5.10 As this is the first tidal irrigation project to be financed in the country to which will require the develop of necessary infrastructure, stakeholders including farmers and extension staff will need certain knowledge and skills in order to be able to manage the scheme in a sustainable way. This component will involve training of i) about 2,300 farmers for a short sessions running for maximum one week in different subjects; ii) about 90 farmers group / association leaders to be trained in some basic management, group formation and leadership; iii) about 100 extension staff including SMS trained in short courses running for 3-12 weeks; iv) four staff trained for master degree in agronomy, agriculture economics, and soil and water management. 4.5.11 Farmers and extension staff will be trained in the following specific areas: (i) soil, water and environmental management, (ii) budgeting and credit management, (iii) basic book keeping, (iv) processing and marketing, (v) leadership (for the Farmers’ Apex), (vi) rice-cum-fish training, (v) Land preparation, and (vi) Refresher courses in basic irrigation infrastructure maintenance. Three training sessions per training module will be conducted per year for four years, making the total number of 72 training sessions. The project will also support field visits between farmers in the same project area and outside i.e. to other regional countries like Senegal so as to encourage farmer-to-farmer dissemination of knowledge and skills. The project will contract selected NGOs with expertise in group mobilisation and formation, training in business and management skills to implement these activities. The agriculture extension staff will supervise rice farmers and provide practical information on crop management techniques and adopted new varieties such as NERICA. Farmer field schools, workshops, seminars and field visits will be organised. The agriculture extension staff will specifically address issues such as efficient utilisation of on-farm nutrients, intensification of the rice-based cropping system, and Integrated Crop and Pest Management (ICPM). Environmental training will be conducted or supervised by the Environmental Protection Agency. About 90 rice farmer-groups will be formed and trained. 4.5.12 Although HIV/AIDS prevalence in The Gambia is low; it is on the increase (from 0.6% in 1993-5 to 2.1% in 2004) and higher in the rural areas than in the urban areas and higher amongst females. GOTG has established a national HIV/AIDS Secretariat in the office of the President, to support community-based to empower stakeholders to plan, implement, monitor, evaluate and document initiatives that they envisage would be more responsive in the fight against HIV/AIDS. There is also a unit in DOSA (and all other Departments) catering for the technical and financial resource requirements of its extension staff in carrying out

20

HIV/AIDS campaigns amongst farmers. The project will support the Unit in DOSA by enhancing its capacity to promote AIDS control activities in the rural areas in collaboration with HIV/AIDS Secretariat. 4.5.13 Malaria accounts for nearly 78% of all outpatients and 40% of all visits to Maternal and Child Health (MCH) clinics. It incidence is even higher in rice growing areas and constitutes a serious disincentive to rice growing in The Gambia. The District Development Committee, which oversees and coordinates all health and development issues, under the Malaria Control Programme, will be supported to run awareness campaigns and improve access to drugs and preventive inputs such as impregnated mosquito nets. The project will target farmers, millers, traders and extension agents in the project area. This will be achieved by incorporating training modules on the subject in the courses that will be organised for the various target groups. 4.5.14 Institutional support to DOSA will be by training its officers on monitoring and evaluation techniques, data processing, overall management, computer usage, and management information systems and providing the necessary equipment. Specialized institutions and NGOs in the country and specialised institutions outside the country will carry out training. The project wills support DOSA to conduct a national agricultural survey to upgrade its database, and recruit Technical Assistance expert in Monitoring & Evaluation and Management Information systems to increase the efficiency and effectiveness in DOSA and its branch in Sapu where the project is located. Under the institutional support component, study tours for Master Farmers, Senior Officials, and Research Scientists will be undertaken. The ADF Grant will finance this sub-component. The project made provision for field and office equipment to support DOSA, farmer Apex Association and the PMU. Extension staff will be given the option to acquire motorcycles and pay 70 per cent of its cost. This staff contribution, will be deducted from their salaries and deposited in the project local account to be used for the purchase of more motorcycles for the same purpose. 4.5.15 Most of the required project experts do not live within the project area. The project will therefore rehabilitate DOSA buildings at Sapu to provide office and residential accommodation for the PIU staff. The buildings include an eight-room office building, two small farmer training buildings; three 5-unit single room buildings as training hostels; two 3-bedroom and six 2-bedroom buildings for the use of the six full-time professional officers and guests to the project; and six 1-bedroom duplex buildings for about half the number of technicians and others (Water Bailiffs, Extension Officers, mechanics and drivers/operators, Accounts Clerk and Secretaries) who are employed from outside the project area. The works, which have been detailed out by DOSA and collaborated by the appraisal team, include re-roofing, repairs to plumbing, electrical, walls, fixtures and repainting. The offices and training buildings will be equipped (computers, photocopiers, generators, air-conditioners). In addition the existing submersible pumps within the compound will be replaced and two generators provided to operate them, to provide potable water to the offices and living quarters. GOTG and staff would contribute to operate and maintain the generators. (C) Rural Credit Support

4.5.16 Credit will be provided both for short- and medium-terms through VISACAs. As indicated in paragraph 2.6.12, VISACAs have a long history of providing credit to farmers since the 1980s at market intrest rate. Following the IFAD support and strict supervision by the Central Bank of The Gambia, the VISACAs including those in the project area have the capacity to manage the proposed credit funds.

21

4.5.17 For seasonal farm inputs, such as fertiliser, farmers will be encouraged to become members of VISACAs to be eligible for obtaining credit from them. The individual farmers will pay membership fees, register, and open savings accounts against which they can borrow. The VISACAs also, mobilise savings from their members and pay market interest rate that varies according to the period of the savings. Currently the interest rate on loans ranges between 28-35% while that on the savings is 15%. In the project area, there are fifteen VISACAs, certified by the Central Bank that are being strengthened through the Rural Finance and Community Initiative Project co-financed by the Government and IFAD. 4.5.18 For the mid-term credit, the Government will provide local currency equivalent to US$ 0.24 million (UA157,860), as part of its contribution to the project. The Government funds will be disbursed in equal instalments over a period of three years through Social Development Fund (SDF), which is a government agency. SDF will evaluate the specific VISACAs that will be used for lending the funds to the final beneficiaries for the acquisition of land preparation and rice processing equipment. Market interest rates will be charged on the credit funds in order to enable the participating Decentralized-Financial Institutions to cover their costs and also avoid capital erosion due to inflation. 4.5.19 To improve business skills of the private sector to better service the farmers, individual entrepreneurs will be trained in business planning, book keeping and marketing. Institutions selected through short-listing will conduct the training. The institutions will include the Indigenous Business Advisory Services (IBAS), Social Development Fund (SDF), Management Development Institute (MDI), VISACA Promotion Centre (VPC) and the West African Insurance Institute. This training will enable the private entrepreneur to develop basic business plans that will be used as a basis for applying for loans. The promotion of the private sector will ensure the continuous provision of agricultural inputs. The selected institution will advertise the training modules, develop all the necessary training materials and conduct the training accordingly. It will also conduct field visits to successful entrepreneurs and follow-up trainees to ensure that they appropriately apply the acquired skills.

(D) Project Management

4.5.20 The project will be implemented by the Department of State for Agriculture, through a Project Implementation Unit (PIU) under the supervision of the Project Steering Committee (PSC). The PIU will have six full-time professional officers seconded by DOSA (Project Co-ordinator, Monitoring and Evaluation (M&E) Officer, Agronomist, a female Gender Specialist, Accountant and Procurement Officer), an Accounts Clerk, 2 Secretaries and 4 support staff will form the PIU. It will be assisted by field staff including: 20 technicians (4 Water Bailiffs, 4 Extension Officers, 2 mechanics and 10 drivers/operators). All PIU staff will be on secondment to the project, with their salaries paid by the State. The PIU will be located at Sapu. A technical Assistant (Irrigation Engineer) will be recruited for a period of 18 months to assist the PIU with the supervision and monitoring of the irrigation infrastructure. The project coordinator should have a MSc. Degree qualification, with a minimum of 7 years operational experience in development projects. Other professional PIU staff should have at least a BSc. Degree qualification with a minimum of 5 years experience in the area of their competence. The qualification and experience of the Project Coordinator, M&E Officer, Accountant, Agronomist, Procurement Officer and Gender Specialist will receive prior approval by the ADF. The profiles of these posts are given in Annex D of the Volume 2. The project organisation chart is given in Annex 2.

22

4.6 Production, Markets and Prices 4.6.1 Domestic rice production suffered a decline from 16,900 tons in 1974 to 13,000 tons in 1900’s. However for the period 1999-2003 production has been fairly stable with an average of 19,500 tons. Imports (136,000 tons in 2003) are seven times higher than this average local production and cost the nation (about Dalasis 1.12 billion or about US$ 38.6 million annually). There is therefore a large market potential for domestic rice production in The Gambia which provides an opportunity for increasing rice production and thereby increasing farmers' incomes in the project area. At full development, the incremental annual production from this project is estimated at 7,000 tons of milled rice. 4.6.2 In general, farmers mill their own production before selling to traders. The existing mills are inefficient resulting in low quality milled rice due to impurities, stones and high proportion of broken grains. The percentage of broken rice obtained from the local mills is about 45%, which is higher than imported Vietnamese brands (35%), the cheapest of the imported rice. Mainly because of cash-flow problems and shortage of spare parts, the current practice is that traders collect paddy from farmers and pay after the rice has been milled and sold. Currently, the cost of milling is 10% of the milled rice equivalent. An 800kg/hour rice mill has now been installed in Madina and is to start operations soon would markedly ease processing and marketing in the project area. 4.6.3 Petty traders who are mainly women sell mainly local rice. In rural areas, the marketing is very informal and rudimentary with no grading or weighing scale. Purchases are made by plate and not standardised. No cash payments are made at time of paddy delivery until the rice is milled. Importers of rice however have established warehouses in the major cities of the country for distribution and standardised measurements. The prices (per kilogram) of paddy and local milled rice are Dalasis 1 to 1.50 and 9.0 respectively, whiles imported rice (long grain) is about Dalasis 11.0/kg. The estimated incremental project annual production of 7.0 MT will not significantly influence the local market price of rice. 4.7 Environmental Impact 4.7.1 Positive Impacts: The project has been classified as Category II under the Bank’s Environmental and Social Assessment Guidelines. The project aims at improving irrigation efficiency of existing schemes in the main and two small new schemes. The activities on the existing developed sites will mostly be for upgrading and conversion of existing infrastructure and land levelling that would have limited environmental impacts, which can be routinely mitigated through design changes and the implementation of mitigating measures. The project has the potential of greatly improving the management and control of water in rice production perimeters. 4.7.2 Negative Impacts: Potential negative impacts may result from the physical development of land for crop production. Poor land levelling and water management may accelerate soil erosion and declining soil fertility. Dikes and bunds may interrupt the spawning of migratory fish species and cause a loss of habitat. Consumption of polluted water by farmers may increase the incidence of waterborne diseases (e.g. schistosomiasis). Other potential negative impacts include, water logging and subsequent salinization caused by poor drainage and pollution of surface waters and groundwater resulting from agrochemical runoff. 4.7.3 The irrigation canals if not properly maintained but clogged with weeds will cause siltation constitute breeding grounds for disease vectors such as snails. Trampling by

23

livestock (cattle) on bunds, plots and seedbeds causes soil erosion and accelerates canal siltation and breaking of bund structure. Livestock encroachment on cultivated plots may also result in loss of some seedlings and newly transplanted rice and may subsequently cause losses in production 4.7.4 Mitigation Measures: Farmers will be assisted with managerial solutions aimed at solving problems associated with land preparation. Small farm equipment will be promoted as opposed to heavy farm equipment, to reduce any potential soil damage from the heavy soil equipment and provide better flexibility in land preparation. Mitigation measures will also include the proper control of water flow to prevent stagnation, thus contributing to a reduction in the incidence of water-related diseases. Technical support and training throughout the project is important and will include pest and disease prevention, safety of pesticide use, and prevention of environmental contamination by agrochemical residues. 4.7.5 A viable maintenance policy not solely dependent on machinery, needs to be put in place to ensure that activities such as desilting of canals are carried out properly and weeding done to help avoid vector breeding and improve conveyance of water to plots. Safe drinking water facilities will be provided in the schemes. A needs assessment will be conducted during the preparation of the ESMP in order to determine the adequacy and sitting of the water supply facilities, and specific prophylactic and treatment measures. 4.7.6 Environmental Monitoring: The National Environment Agency (NEA) will assist with evaluating and monitoring the environmental impacts during project implementation. The project will ensure that all identified problems are addressed by implementing mitigating measures spelt out in the ESMP. The NEA will ensure that the environmental mitigation measures are implemented, and mechanisms put in place for monitoring the long-term ecological effects of the project. A site-specific survey will be conducted before the commencement of project activities in order to determine environmental mitigation/enhancement measures, which should be integrated with project design and implemented according to the Environmental and Social Management Plan (ESMP). A budget allocation of UA 75,000 has been made for the implementation of the ESMP. 4.8 Social Impact

The social impact of the project will come from four main sources, namely increased rice production (7,000 tons of milled rice annually), 6 day-care centres and farmers’ support & training (90 farmer groups will be formed and trained, also training will be conducted by the Agricultural Extension Service and NGOs throughout the project life). Increased rice production will create more employment in the rural and urban areas; increase incomes for smallholder rice producers (from Dalasis 5,500 to Dalasis 21,200 about 380%) and entrepreneurs (by 25% on the average). Training will enhance the farmers’ awareness and capability to solve their own problems and empower the local communities to take care of their needs. It will further enhance the capability of the entrepreneurs to make better business decisions. The HIV/AIDS and malaria awareness campaigns will contribute to the health of population. All of these improvements will contribute to poverty reduction. The participatory approach adopted by the project will help address the needs of the poorest farmers, many of whom are women. Day-care centres will further help women farmers in caring for their children while they work in the fields. Increased incomes for women will improve household food security and well being, as women spend most of their earnings on their families, especially on their children. In addition, the introduction of the mechanical including power tillers, threshers, reapers, and mini rice mills will help ease the workload on farmers,

24

particularly women who constitute 95% of lowland farmers within the project and nationally, and who have multiple roles in production and household. 4.9 Project Costs 4.9.1 The total cost of the project, exclusive of custom duties and taxes but including physical and price contingencies, is estimated at Dalasis 251 million equivalent to UA 6.42 million. The foreign exchange portion is estimated at UA 4.46 million representing 70% of the total project cost. The local cost portion is UA 1.96 million equivalent to 30% of the total cost. A summary of costs by component and by category of expenditure is provided in Table 4.1 and Table 4.2 below.

Table 4.1: Summary of Project Cost Estimates by Component

GMD' 000 UA' 000

Components Local Foreign Total Local Foreign Total % of FE

1. Land Development 18,026.0 85,504.0 103,530.0 461.6 2,189.4 2,651.0 80% 2. Capacity Building 13,060.0 54,132.0 67,192.0 333.2 1,386.1 1,719.3 80% 3 Rural Credit Support 6,165.0 0.0 6,165.0 157.8 0.0 157.8 0% 4. Project Management 28,603.0 4,304.0 32,907.0 732.1 110.2 842.3 10%

Total Base Cost 65,854.0 143,940.0 209,794.0 1,684.7 3,685.7 5,370.4 69% Physical Contingences 1,921.0 10,435.0 12,356.0 49.2 267.2 316.4 80% Price Contingences 8,747.0 19,902.0 28,649.0 223.9 509.6 733.5 70% Total Project Cost 76,522.0 174,277.0 250,799.0 1,957.8 4,462.5 6,420.3 70%

Table 4.2: Summary of Project Estimates by Category of Expenditure

GMD '000 UA'000 Local Foreign Total Local Foreign Total % FE

A. Works 20,367.0 105,695.0 126,062.0 520.7 2,706.4 3,227.1 84% B. Goods 275.0 24,780.0 25,055.0 6.9 634.5 641.4 99% C. Services 17,870.0 38,448.0 56,318.0 457.2 984.5 1,441.7 68% D. Credit Support 6,164.0 0.0 6,164.0 157.8 0.0 157.8 0% E. Operating Costs 31,846.0 5,354.0 37,200.0 815.2 137.1 952.3 14% TOTAL COST 76,522.0 174,277.0 250,799.0 1,957.8 4,462.5 6,420.3 70%

4.9.2 All project costs were estimated on the basis of the prevailing prices in The Gambia as of March 2005. The prices of imported goods and services were obtained in Dalasis and then converted to Units of Account (UA) using February 2005 exchange rates. Cost for civil works is based on ongoing similar works. Rates of 10% and 5% for physical and price contingencies respectively, were applied to the costs of civil works and goods to be purchased under the project. Since the project accounts would be denominated in UA and given the stability of the UA, it is anticipated that effects of inflation (averaging 27% between 2002-4) in The Gambia would be compensated for. It is therefore unnecessary to separate the effect of price contingencies into local and foreign expenditures. A flat rate of 5% was applied to both imported and local goods and services.

25

4.10 Sources of Financing and Expenditure Schedule 4.10.1 The project will be financed by an ADF Loan, ADF Grant, the Government of The Gambia (GOTG), and beneficiaries. Total ADF Loan financing will be UA 5.0 million, representing 78% of the total project cost, whereas ADF Grant resources amounting to UA0.50 million will finance the institutional support component of the project out of which UA 0.39 million and UA 0.11 million will be in foreign exchange and local costs respectively. The financing plan of the project is shown in Table 4.3, Table 4.4, and 4.5 below.

Table 4.3: Project Sources of Finance

GMD '000 UA '000 Source of Financing Local Foreign Total Local Foreign Total

% of Total

ADF Loan 36,439.0 158,863.0 195,302.0 932.2 4,067.8 5,000.0 78% ADF Grant 4,125.0 15,418.0 19,543.0 105.2 394.8 500.0 8% Government 27,367.0 0.0 27,367.0 700.2 0.0 700.2 11% Beneficiaries 8,587.0 0.0 8,587.0 220.1 0.0 220.1 3%

TOTAL 76,518.0 174,281.0 250,799.0 1,957.7 4,462.6 6,420.3 100%

Table 4.4: ADF Loan/Government Financing

GMD '000 UA '000 Source of Finance Local Foreign Total Local Foreign Total

% of Total

ADF Loan 36,439.0 158,863.0 195,302.0 932.2 4,067.8 5,000.0 85%

Government 25,999.0 0.0 25,999.0 665.2 0.0 665.2 11%

Beneficiaries 8,587.0 0.0 8,587.0 220.1 0.0 220.1 4%

Total 71,025.0 158,863.0 229,888.0 1,817.5 4,067.8 5,885.3 100%

Table 4.5: ADF Grant/Government Financing

GMD '000 UA '000 Source of Finance Local Foreign Total Local Foreign Total

% of Total

ADF GRANT 4,125.0 15,418.0 19,543.0 105.2 394.8 500.0 93%

Government 1,368.0 0.0 1,368.0 35.0 0.0 35.0 7%

Total 5,493.0 15,418.0 20,911.0 140.2 394.8 535.0 100% 5. PROJECT IMPLEMENTATION

5.1 Executing Agency

The project will be implemented by the Department of State for Agriculture, through a Project Implementation Unit (PIU) located at Sapu under the supervision of the Project Steering Committee (PSC). At the field level DOSA branches in the Central River Division including, in particular, the Agricultural Extension Services, Soil and Water Management Unit, and the National Agricultural Research Institute (NARI) together with its Seed Technology Unit, will assist the PIU, to ensure harmonious implementation and sustainability of project

26

activities. Targeted technical assistance missions (rice policy, training, environmental and social management plan and monitoring, mid-term review and auditing of project accounts) will periodically support the project unit. Extension and support staff working in the project area will be also engaged in the implementation of the project activities. 5.2 Institutional Arrangements 5.2.1 Project Steering Committee (PSC): A Project Steering Committee will be set up at the start of the project and will be responsible for the overall direction of the project implementation. It will be made up of the Permanent Secretary of State of DOSA or his deputy as Chairperson, Departments of Agricultural Services, Planning and Fisheries, Soil and Water Unit (SWMU), National Agricultural Research Institute (NARI), Seed Technology Unit (STU), National Environmental Agency (NEA) and three farmers within the project area. At least one of the farmers representatives shall be a female farmer from the Water User Groups. The Project Coordinator will provide secretariat services to the PSC. The Fund will require evidence from the GOTG of the formation of the PSC and that it has been given official responsibility to oversee project activities. 5.2.2 The PSC shall meet at least twice a year to a) review and approve the project Annual Work Plans and Budget (AWP & B) submitted by the PIU; b) discuss and resolve any issues related to rice production and marketing in the CRD; c) address any inter-agency constraints and facilitate project implementation; advise Government, of the need for policy changes, particularly in relation to credit for small-scale farmers and availability of farm inputs; and e) review the regular project progress reports, including M&E reports, from the PIU. For a coherent implementation of the project, a coordination of efforts of donors and development partners in the project area, especially in the Jahally area, is envisaged 5.2.3 The Soil and Water Management Unit (SWMU) of DOSA will provide services for soil surveys, detailed re-design, supervision of construction and training of farmers in environmental and water management issues. SWMU has the capacity and good track record as it already satisfactorily has done for other projects including LADEP (Low Land Agricultural Development Programme), which was co-financed by ADF and its successor project, PIWAMP: Participatory Integrated Watershed Management Project and use of simple technologies in land management and farmer participation in project implementation. 5.2.4 National Agricultural Research Institute and the Seed Technology Unit will be responsible for the adaptive research programme and aquaculture trails. The seed technology Unit will ensure the multiplication of selected seed varieties. It will also test and certify all seed produced for the use of farmers in the developed schemes. 5.2.5 The Department of Agricultural Services (DAS) and the Department of Health: The implementation of the HIV/AIDS and Malaria prevention sub-component will be the responsibility of the Department of Agricultural Services in collaboration with the National HIV/AIDS Secretariat and the Malaria Control Unit of the Department of Health, who would provide technical assistance to DAS to integrate these campaigns into normal extension activities of the Extension Officers and farmers programme, to ensure sustainability and community ownership. 5.2.6 The National Environment Agency (NEA): The NEA will supervise the consultant hired to undertake site surveys for the implementation of the ESMP. It will also

27

monitor the environmental impact and adopted mitigating measures within the project activities during its implementation. 5.2.7 The Fisheries Department, which is already executing the ADF funded Artisanal Fisheries Development Project, will provide technical support for the 10-ha fish-rice culture trials including community sensitisation, pond specification and management inputs and marketing strategies. 5.2.8 NGOs: Group formation and some training activities will be contracted out to local NGOs with experience and capacity for mobilising, animating and training farming and entrepreneurial groups. 5.3 Supervision and Implementation Schedules 5.3.1 Supervision Schedule: The day-to-day supervision of the project will be done by the PIU. It shall submit the AWP & B three months before the beginning of each year, to ADF for review and approval prior to implementation. It will supervise all the project activities including those to be undertaken by contractors, consultants, rice producers and processors and will report, quarterly, to the PSC on all aspects of the project including financial aspects, and progress of project activities based on reports received from the M&E officer. It will also prepare a project completion report (PCR) capturing all aspects of the project including achievements, constraints, problems and lessons learnt at the end of the project. The PSC will hold semi-annual meetings to ensure that work plans and procurement schedules are achieved as planned. 5.3.2 The ADF will supervise the project regularly in accordance with Bank procedures, to evaluate the progress of project implementation and discuss with PIU, DOSA, beneficiaries, other officials and stakeholders regarding relevant activities, achievements, problems, constraints, and any changes that may be necessary. A mid-term review mission will take place towards the end of the third year of project implementation 5.3.3 Implementation Schedule: The project will be implemented over a period of 5 years (2006-2010). Detail design studies for land development and rural infrastructure will take place in Year (2006) with rehabilitation of project office/s. ADF Grant accommodation starting in mid 2006. Land development will be implemented in two phases, one-third in PY2 and the rest in PY3. Cropping on the rehabilitated/new lands will take place in PY3 with cultivation of the total project land in PY4. For effective management of the project frequent monitoring, mid-term review, and completion missions are planned. Details of the implementation schedule summarised in Table 5.1 below and detailed out in Annex 3.

Table 5.1: Implementation Schedule

Activities Responsibility Start Duration 1. Board approval ADF April 2005 1 day 2. Entry force of the loan and first disbursement DoF/ADF August 2005 4 months 3. Recruitment of Coordinator DOSA October 2005 6 months 4. Project launching mission ADF March 2006 10 days 5. Design and tender documents SWMU 2006 1 year 6. Training DOSA/NGO 2006-2010 5 Years 7. Construction works Contractors 2007/8 2 Years 8. Land Cultivation ADF 2008-2010 3 Years 9. Mid-term review ADF Mid 2008 3 months

28

10. Project Completion DOSA/NGO December 2010 11. ADF completion mission report GOTG/ADF June 2011 2 months

5.4 Procurement Arrangements 5.4.1 All procurement of goods, works and services financed by the Bank Group will be in accordance with the Bank’s Rules of Procedure for Procurement of Goods and Works or, as appropriate, Rules of Procedure for the Use of Consultants. The Project Implementation Unit will prepare and process all the procurement documents. The goods, Works and Services for the project will be procured according to the modes shown in Table 5.2 below. 5.4.2 Works: Procurement of civil works comprising of Land Development (irrigation and community infrastructure) amounting to UA 2.82 million will be procured through International Competitive Bidding (ICB). The works will be spread over the 7 sites that will be covered under the project. The ICB procedure has been selected because of the amount, scope, nature of the works involved and the fact that there is no indigenous construction capacity in the country.

Table 5.2: Summary of Procurement Arrangements

UA’000 CATEGORY ICB NCB Other SL NB TOTAL

A. Works 1. Civil Works(Land Devt) 2,824.4 220.1 3,044.5 (2,824.4) (0.0) (2,824.4)2. Office/Staff Accom. Rehab. 182.6 182.6 (182.6) (182.6)B. Goods 1. Equipment 339.2 339.2 (339.2) (339.2)2. Vehicles and Motorcycles 165.6 165.6 (165.6) (165.6)3. Others (Agric. Inputs) 136.6 136.6 (136.6) (136.6)C. Services 1. Technical Assistance 279.7 279.7 (279.7) (279.7)2. Training 969.3 969.3 (969.3) (969.3)3. Surveys, Designs and Reviews 192.7 192.7 (192.7) (192.7)D. Operating Costs 1. Operations and Maintenance 223.8 223.8 (159.8) (159.8)2. Salaries 344.8 344.8 (0.0) (0.0)3. Rent (Office/Accommodation) 133.6 133.6 4. Subsistence Allowance 250.1 250.1

29

(250.1) (250.1)E. Credit 157.8 157.8 (0.0) (0.0)TOTAL PROJECT COST 2,824.4 824.0 824.4 1,249.0 698.5 6,420.3

(2,824.4) (824.0) (602.6) (1,249.0) (0.0) (5,500.0)Note: Figures in bracket indicate ADF Financing

5.4.3 Goods: Procurement of vehicles and motorcycles amounting to UA0.166 million will be under National Competitive Bidding procedures. Likewise, the procurement of various types of equipment (for office, field) and farm implements valued at UA0.494 million, will also be under National Competitive Bidding procedures. An adequate number of local agents of international suppliers are available in the country and this will ensure competitive prices. 5.4.4 Services: Procurement of consulting services and technical assistance will be undertaken on the basis of shortlists of qualified consultants, in accordance with the Bank's "Rules of Procedure for the Use of Consultants". Contract services for MIS design and monitoring, engineering design and supervision, annual auditing, Mid-Term review, PCR preparation, launching and ad-hoc studies (UA0.255 million) will also be procured on the basis of shortlists, with the selection procedure combining technical quality with price consideration. A total amount of UA 0.133 million has been budgeted to support the ongoing programme for prevention HIV/AIDS and malaria. Due to the specialised nature of the services, these activities will be co-ordinated by the Ministry of Health, the ministry responsible for these activities 5.4.5 National Procedures and Regulation: The Gambia’s national procurement laws and regulations have been reviewed and determined to be acceptable. The Public Procurements Authority that was established in 2004 reviews all bid evaluation reports before they are finally submitted for Bank approval. The project unit will be responsible for the initiation of all tender documents required for the procurement of works, goods and service contracts. 5.4.6 The Executing Agency: DOSA will be responsible for the procurement of goods, works, consulting, and training services. DOSA has extensive experience implementing donor-financed projects. The Implementing Agency is therefore familiar with ADF Rules of Procedure for the Procurement of Goods, Works and Services. The resources, capacity, expenses and experience of DOSA are adequate to carry out the procurements. 5.4.7 Procurement Documents: The text of a General Procurement Notice (GPN) will be agreed with the Department of State for Agriculture and it will be issued for publication in Development Business upon approval of the Loan Proposal by the Bank. The documents subject to review and approval by the Fund before promulgation will include: i) Specific Procurement Notice; (ii) Tender Documents or Requests for proposal for Consultants; and (iii) Tender Evaluation Reports or Reports on Evaluation of Consultants’ Proposals, including recommendations for contract award. Draft contracts will also be subject to Fund approval if they have been amended from the drafts included in the tender documents 5.5 Disbursement Arrangements 5.5.1 The project funds will be disbursed according to the expenditure schedule by component and by source of finance shown in Table 5.3, Table 5.4,

30

Table 5.5 and Table 5.6 respectively. The Government will open two separate accounts in the name of the project for the funds provided by ADF Loan and ADF Grant. The contribution of the Government to the project costs will also be deposited in a separate special account. The opening of these accounts will be a loan condition. The ADF funds will be disbursed according to an annual work programme, which will be approved beforehand by the Government and ADF. The initial request for disbursement of the special account will be submitted to the Bank for approval and shall cover a period of four months. The first disbursement from the ADF account will be made after entry into force of the loan and fulfilment of conditions precedent to first disbursement from the loan. An initial advance will therefore be lodged in the ADF special account, in accordance with disbursement rules of the Bank. Disbursement of subsequent funds will be subject to justification of the utilization of the preceding funds. The settlement of expenses relating to the services of consultants, contractors and suppliers will be effected by direct payment in accordance with relevant rules of the Bank.

Table 5.3: Expenditure Schedule by Component

UA ‘000 Component PY1 PY2 PY3 PY4 PY5 Total %

1. Land Development 340.8 833.7 2,119.0 0.0 0.0 3,293.5 51% 2. Capacity Building 619.4 486.2 372.5 311.7 214.1 2,003.9 31% 3. Rural Credit Support 52.6 52.6 52.6 0.0 0.0 157.8 2% 4. Project Management 257.8 183.1 164.0 178.7 181.5 965.1 15%

Total cost 1,270.6 1,555.6 2,708.1 490.4 395.6 6,420.3 100%

Table 5.4: ADF/Government/Beneficiaries Expenditure Schedule

UA ‘000 Source of Finance PY1 PY2 PY3 PY4 PY5 TOTAL

ADF 1,018.6 1,174.7 2,225.8 324.8 256.1 5,000.0 Government 136.2 142.9 156.6 112.0 117.5 665.2 Beneficiaries 1.8 64.3 154.0 0.0 0.0 220.1

TOTAL 1,156.6 1,381.9 2,536.4 436.8 373.6 5,885.3

Table 5.5: ADF GRANT/Government Expenditure Schedule

UA ‘000 Source of Finance PY1 PY2 PY3 PY4 PY5 TOTAL

ADF GRANT 106.8 166.2 163.5 47.7 15.8 500.0

Government 7.2 7.5 8.2 5.9 6.2 35.0

TOTAL 114.0 173.7 171.7 53.6 22.0 535.0 5.6 Monitoring and Evaluation

31

5.6.1 Monitoring and evaluation (M&E) will be carried out in a participatory and gender sensitive manner. The project M&E officer will set up verifiable indicators for monitoring the differential impact that the project has on male and female beneficiaries and ensure that the benefits reach the target group these indicators will be sent to the Bank for review and approval before its use and inclusion in the MIS. Project monitoring and evaluation will be the responsibility of the Project Implementation Unit (PIU). The Department of State for Finance and Economic Affairs will periodically monitor the overall implementation of the project. At the District level, District Development Committees, which include stakeholders, will constantly monitor implementation and impact of the project. The PIU will be required to provide quarterly reports prior to each of the Project Steering Committee meetings. A mid-term review of the project’s performance will be undertaken in the third year, which will form the basis for modifying the project’s approach, if, found necessary.

Table 5.6: Summary of Expenditure by Category and Source of Finance

UA ‘000 ADF Loan ADF Grant GOVT Beneficiaries Total

Works 3,007.0 0.0 0.0 220.1 3,227.1 Goods 545.6 95.8 0.0 0.0 641.4 Services 1,037.5 404.2 0.0 0.0 1,441.7 Operating Cost 409.9 0.0 542.4 0.0 952.3 Credit 0.0 0.0 157.8 0.0 157.8 Total Cost 5,000.0 500.0 700.2 220.1 6,420.3 5.6.2 Project Implementation Unit will prepare quarterly progress reports, (according to the Bank Group format) and annual progress reports indicating physical progress, procurement activities, expenditures, and evaluate the representation of men and women as beneficiaries according to the requirements of ADF. Quarterly reports should reach ADF within two months of the end of the reporting period, while the annual report should be submitted before the end of March of the following year. Department of State for Agriculture will submit a project completion report to the ADF within six months of the end of project implementation.

5.7 Financial Reporting and Auditing The PIU of the Project will keep financial records in accordance with sound international accounting practices and will ensure that an independent auditor, acceptable to the government of The Gambia and ADF, audits all project accounts annually. The corresponding audit reports will be regularly submitted to ADF for review. The project coordinator will be responsible for timely submission of annual financial statements. Fully audited and certified financial statements for the preceding financial year shall be submitted to ADF not later than six months after close of the financial year. 5.8 Aid Co-ordination 5.8.1 UNDP currently facilitates donor co-ordination in The Gambia. Specifically it is assisting the Government in preparing an aid coordination policy. Strategic donor co-ordination occurs at various stages of the project cycle; i.e. conception, identification and implementation and deals with themes such as gender, HIV/AIDS and Malaria control and natural resources management. With regards to the Agricultural Sector, DOSA is responsible

32

for co-ordinating donor assistance in the sector through the Office of the Deputy Permanent Secretary for projects and programmes. Coordination between various donors will continue during project implementation. Activities with regards to HIV/AIDS awareness will complement activities undertaken by the World Bank supported project. 5.8.2 Representatives of UNDP, FAO, British Department of Technical Co-operation (DFID), China Mission in The Gambia, GTZ, WFP and IFAD were consulted during appraisal. Different donors were also briefed on the proposed project. Support to the proposed project was expressed. 6. PROJECT SUSTAINABILITY AND RISKS

6.1 Recurrent Costs 6.1.1 Recurrent expenditures under the project are estimated at UA 0.95 million for the entire period of the project of which UA0.41 million will be financed by ADF and UA0.54 million will be financed by the Government. The cost items under the ADF financing include: operating costs for the projects office, operation and maintenance of vehicles and field allowances. The cost items to be borne by the Government comprise salaries, office utilities and part of running and maintenance cost. The operations and maintenance of water control and management infrastructure developed by the project would be the responsibility of the beneficiaries as would be recovered as part of normal farm operating costs through farmers’ groups and the Apex Association.

Table 6.1: Summary of Recurrent Costs (UA’000) Source of Finance PY1 PY2 PY3 PY4 PY5 Total ADF 70.15 92.35 110.54 86.04 50.82 409.90Counterpart 82.32 107.09 112.72 118.12 122.15 542.40 6.1.2 At the end of project implementation, the PIU will be phased out and farmers will take full charge of the tidal schemes. Recurrent costs associated with the water channels and access roads estimated at UA 134,000 per annum, will be borne by farmers as part of their water user fees managed by the user groups. Costs associated with the wells, day care centres, stores, and drying floors amount to UA 13,000 per annum and will also be borne by farmers on hire basis. The Government’s involvement will be limited to the salaries and travel expenses of the various agents on the ground who will continue to provide advisory support to farmers. Recurrent costs related to production, bund maintenance and processing would be borne by the project beneficiaries. The project, will not pose any problem to the government’s recurrent budget, as the beneficiaries would meet the maintenance costs through their labour work participation and association fees and maintenance budget.

6.2 Project Sustainability 6.2.1 The project is designed on a demand-driven and participatory approach, guaranteeing farmers commitment and involvement in all aspects of the project implementation. The farmers through the Rice Farmers Cooperative Society (RFCS) with assistance from DOSA, Taiwan government and Action-Aid the Gambia (AATG) purchased and installed an 800kg/hour rice mill in the project area. They also purchased a 7T truck for

33

transportation of their produce. The investment already made by the farmers in the project area will go a long way in solving the processing and marketing problems of rice production in the area. This will enhance the farmers’ incomes and thus significantly contribute towards sustainability. Further, farmers are fully committed to this mill since a company has been floated to oversee its operation with shares made up equally and membership of the Board drawn equally from the four partners. Farmers have also agreed to mill at least half their production at the mill, the company would link-up with marketing outlets especially in Banjul, provide extension services and invest in land development/rehabilitation, a net annual revenue of US$98,000 is expected for a 4,500 ton of paddy processed, and proceeds from the mill are expected to be re-invested in more mills and help subsidise the cost of operating the irrigated rice fields in the area. The improved processing facilities will raise the quality and competitiveness of local rice, which will attract more consumers, boost demand and subsequently trigger more production, thus making the process self-sustaining. 6.2.2 The land and water management works to be undertaken are all based on simple low cost traditional technology, which is already familiar to most of the farmers especially in the existing sites which constitute about 80% of the project land. New entrants will easily master this technology through the training provided by the project. The project would however employ water bailiffs during the 5 year project period to ensure that farmers are adequately trained on the job to operate and maintain the system. Farmers currently pay Dalasis 300 (about US$10) per season per 0.5ha for maintenance of the irrigation structure to the Rice Farmers Cooperative Society (RFCS) and have therefore already accepted the principle of payment for services provided them by the project. Their participation in the management of the project would ensure that new levels of fees required to ensure adequate maintenance would be transparently discussed and accepted. 6.2.3 RFCS has an account at the Basse Standard Chartered bank, but individual farmers, Water User Groups, and entrepreneurs will be encouraged to open group accounts with the VISACAs into which the funds will be deposited. Savings by the water user groups will boost savings mobilization by the VISACAs permitting it to provide short-term loans to their clients. Furthermore the training programmes under the project will build upon farmers’ previous experience and is expected to strengthen their capacity to undertake the project activities. 6.2.4 The improved rice varieties to be promoted will be selected on the basis of their adaptability to the rice-ecology in the Central River Division and the consumers’ preferences taking in consideration the outcome of WARDA research. The use of improved inputs and cultural practices, and appropriate technology will improve soil fertility and structure, leading to sustained production and productivity. The crop budget indicates that income gains from growing rice with improved management are substantially higher than traditional practices, which makes it very attractive thus providing adequate incentives for farmers to expand production 6.2.5 To ensure sustainability, the Village Development Committees will manage and maintain the day-care centres established and/or rehabilitated under the project. New day-care centres will be either attached to schools or located near close to communities to ease management. Farmers will pay a fee for the operation and maintenance of the facilities and also for the use of stores and drying floors to be provided under the project, to ensure their continued maintenance.

34

6.2.6 The whole of the south bank road from Banjul, through the project area to the country’s eastern border is in a deplorable state, but is to be reconstructed over the next three years with funding from Kuwait, Saudi, OPEC and BADEA Funds (141Km) and EU (192Km). This will greatly improve access to the project site and hence marketing of farm produce. 6.3 Critical Risks and Mitigating Measures 6.3.1 The success of the project will depend partially on the assumptions that the Government’s on-going macro-economic policies, particularly in the agricultural sector are expected to provide adequate incentives for farmers to intensify rice production through adoption of improved crop management practices such as a tidal simple irrigation techniques with low cost of maintenance, appropriate land preparation and use of adapted varieties such as NERICA though NARI. It is expected that the international price of rice will remain stable. The stable exchange rate of local currency (Dalasi) will encourage the investments in rice sub-sector, which will lead to the increase of the production. The risk is that the price of rice may decrease in any or both international and local markets. The operation cost of the designed tidal irrigation systems is relatively cheap to operate and attractive for rice production. Further, use of the NERICA new varieties that are already adopted by NARI to dissemination to farmers will contribute to increase the rice yield especially with irrigation. With these measures of low cost of production and high yield of rice crop, farmers would be able to secure satisfactory profit margins. 6.3.2 One of the risk factor for the project is related to tidal water regime of the river Gambia. The tidal is natural phenomena of water coming from the Ocean. In cultivated areas close to the Ocean, the saline water may affect the crop production if appropriate measures are not taken for land protection. However, the project site is situated at about 80 km from the Ocean and the intrusion of the saline water does not exceed 25 km. Therefore, the net effect on upstream saline movement will be negligible. Further, the completed Lowland Agricultural Development Programme (LADEP) constructed contours, spillways and causeways for soil and water management covering most of the low land areas. In addition, the Bank approved Integrated Watershed Management project in 2004, as second phase of LADEP to cover upper-land areas. With such emphases on the soil, water management and control, there is no risk for salinization of rice fields in the project area. 6.3.3 It is also assumed that climatic condition will be favourable to rice farming. Enhanced sustainable rice development will be achieved through the adoption of improved agronomic practices. This includes adherence to cropping calendar, and a good maintenance programme of physical water supply infrastructure such as the tidal canals to allow maximum water flow to the rice fields. With the extension, training and technical support in project design, the skills and know-how of the target farmers will be upgraded and able to minimize the impact of any possible drought. Further, the tidal irrigation schemes will improve the water management and minimize the risk of climatic unfavourable conditions such as drought. 7. PROJECT BENEFITS 7.1 Financial Analysis

7.1.1 The farm models assumed double rice cropping under tidal irrigation conditions. The farmers themselves will finance the increase in the cost of production by utilizing the

35

credit facilities provided under the project. Prices and other data used to calculate farm inputs and outputs were obtained from DOSA and Department of State for Finance during project appraisal. 7.1.2 On the basis of farm budgets using estimated incomes, farm gross margins incomes will increase by Dalasis 7,358 (equivalent to UA 386) per ha annually from third year. This increase will ensure the full and active participation of rice farmers in the operation and maintenance of the production perimeters under the project. The “without project” farm budget results in a gross margin income of Dalasis 3,521 per ha annually. The results of the financial analysis demonstrate that rice production under the project arrangements is profitable venture, returning an overall Financial Internal Rate of Return FIRR of 19%. 7.2 Economic Analysis 7.2.1 The economic analysis of the project was undertaken to evaluate its net social impact. The economic benefits arising from the proposed project are quantified by comparing the “with” and “without” project situations to identify incremental benefits. The economic benefits of the project will be derived from increased rice production encouraged by increased use of improved inputs, improved cultural practices and improved rice varieties. With the project the yields will increase from 2.5 to 5.5 tons/ha and the tidal irrigation rice area will be 1,200 ha, after expansion and conversion of the pump irrigation areas, which will lead to substantial increase in rice production. The assumptions used in the evaluation of the project contribution to the national economy are the following: 1) The net benefit stream has been estimated over a period of 25 years; 2) Economic prices have been valued at market prices and for imported rice price used is US$284 per ton, which is the average price of the imported rice of equivalent quality from Asia; 3) Financial costs of the project have been adjusted to economic costs by excluding by excluding taxes, duties and price contingencies; and 4) The Gambian market is a free market where prices are determined by the market forces. 7.2.2 Based on the foregoing assumptions, the economic internal rate of return (EIRR) of the project is estimated at 23% and a Net Present Value (NPV) of Dalasis 36.13 million, at the opportunity cost of capital of 12%. The additional milled rice production from the project is estimated to be about 7,000-tons/year beginning in year 4. With this level of production, the project will substantially contribute to the saving of foreign exchange to the tune of US$2.0 million annually at the conservative import parity price of US$284/ton. At the market price, the saving will be about US$2.90 million annually. 7.3 Cross Cutting Issues 7.3.1 The Bank has recently put into place a new classification system that indicates the share of resources that are specifically earmarked for cross cutting issues. When an issue is given a classification of 2, it is a major theme or thrust of the project. Only one cross cutting issue can be given the grade of 2. When an issue is given a rating of 1, it is addressed in a major way by the project. 7.3.2 The principal impact of the Farmer Managed Tidal Irrigation Rice Project will be improved food security and income of small holder farmers, processors and trader, who are mainly women. Both the target area and the target group assure that the project will disproportionately benefit the poor. The target area of this project includes the Central River Division South Bank, where 50% of the population are poor. And throughout Gambia, 60% of those identified as poor are from the agriculture sector. Access to credit will permit resource

36

poor farmers, processors and traders to buy agricultural inputs. Improved extension services on rice agronomic practices, and processing will not only reduce the post harvest losses but also improve the yield per hectare and allow farmers to plant two crops per year to maximize their income. The impact of improved extension services and training will be enhanced by access to improved feeder roads and the availability of logistics (mainly Motorbikes). Extension trainees should include women. For all of these reasons, the CCI classification given to poverty reduction in this project is 2. 7.3.3 The CCI classification of this project for gender, economic growth and private sector development is 1. Mitigating measures have been put into place to prevent increased workload on women and children. It has been agreed that safeguards be put in place to mitigate potential negative impact on women and children. These include: (i) access to credit to purchase farm equipments and machinery or labour saving devises; (ii) provision of water wells to provide potable water in the fields; (iii) training DOSA staff in gender and participatory development; (iv) recruitment of women as a gender specialist in the PIU; (v) setting a gender focal point at DOSA; (vi) rehabilitation/creation of day-care centres; (vii) carrying out participatory project monitoring and evaluation; and (viii) the inclusion of some women farmers in the Project Steering Committee. 7.3.4 This project contributes to economic growth through the increased output in the rice sub- sector, thereby redressing macro-economic imbalances resulting from the present low level of production of the sub-sector. Rice production, processing and marketing is largely carried out for subsistence rather then as a profit-making venture. This project will provide the conditions necessary to render farmers more entrepreneurial, expand the role of the Rice sub-sector in economic growth and generate increased economic opportunities for the sub-sector. To a lesser degree, the project also contributes to good governance, through the implication of NGOs in project implementation, training given to farmers’ in-group formation and the emphasis placed on participatory development. The thematic area of regional integration and co-operation is not addressed in this project. 7.4 Sensitivity Analysis 7.4.1 The sensitivity analysis shows that rice revenues have to decrease by 20% for EIRR to fall to 13% (which is still higher than the opportunity cost of capital of 12%). EIRR falls to 16% when costs increase by 10% and revenue fall by 10%. All selected levels of changes in key factors show EIRR as follows: i) At current benefits 23% ii) 20% yield decrease 13%

iii) 10% costs increase and 10% fall in revenue 16% iv) Two-year delay in revenue 15% 8. CONCLUSIONS AND RECOMMENDATIONS 8.1 Conclusions

37

8.1.1 Rice has become an important staple food throughout Gambia. More than two-thirds of the national rice requirement is met by imports using scarce foreign exchange. The project will benefit about 2300 farmers, about 95 % of whom are women. At full development, the proposed project will increase domestic rice production by 7,000 tons of milled per year. Hence, the project will contribute to foreign exchange savings valued at about US$ 2.0 million per annum. By participating in the project farmers incomes increase from Dalasis 5,500 to Dalasis 21,200 per ha per year. About 90 farmers’ groups will be created and/or strengthened and about 2300 households will be trained by the project. The project will directly benefit about 2300 households (23,000 individual) and create 4500 seasonal jobs. Increased rice production by the project will induce increased employment and income generation opportunities in backward and forward linked industries. The group formation and training will facilitate technology adoption, access to inputs and marketing. The training will make the beneficiaries better citizens and better able to participate in the affairs of the country. Rural living conditions will improve as a result of increased incomes. 8.1.2 The project is socially desirable and environmentally sound, technically feasible, and financially and economically viable. The proposed project remains a high priority in the agriculture development policy by the Government of Gambia and it is consistent with the Bank Group vision as well as Bank Group strategy for Gambia.

8.2 Recommendations and Conditions for Loan and Grant Approval 8.2.1 In view of the expected project outputs, it is recommended that an ADF loan of not more than UA5.00 million and a ADF Grant of UA 0.50 million be granted to the Government of The Gambia for the purpose of implementing the project as described in this report, subject to the fulfilment of conditions stipulated in the loan and grant agreements.: A. Conditions precedent to entry into Force of the Loan and Grant Agreements The entry into force of the Loan and Grant Agreements shall be subject to the fulfilment by the Borrower of the provisions of sections 5.01 of the General Conditions of the Fund applicable to Loan Agreements, and the Section 4.01 of the General Conditions applicable to the Protocols of Agreement dated 19 June 1991. B. Conditions prior to Disbursement

The obligations of the Fund to make the first disbursement of the loan shall be conditional upon the entry into force of the Agreement and the fulfilment by the Borrower of the following conditions. The Borrower shall:

(i) Provide evidence that the amount of US$80, 000 for the first project year is allocated

under the national budget for the Department of State for Agriculture starting January 2006 to be transferred to SDF (Paragraph 4.5.19).

(ii) Provide evidence of the establishment of a Project Steering Committee to include the

Permanent Secretary of State of DOSA as Chairperson, Departments of Agricultural Services, Planning and Fisheries, Soil and Water Unit (SWMU), National Agricultural Research Institute (NARI), National Environmental Agency (NEA) and three farmers (at least one of which is a female farmer) from the Water User Groups (Paragraph 5.2.1).

38

(iii) Provide evidence of the appointment of the Project Implementation Unit (PIU) staff: a full-time Project Co-ordinator, Monitoring and Evaluation Officer, Agronomist, Gender Specialist, Accountant, Procurement Officer whose qualifications and experiences are acceptable to ADF (Paragraphs 4.5.21 and 5.1).

(iv) Provide evidence of the allocation of office space for the Project Implementing Unit in

Sapu (Paragraphs 4.5.15, 4.5.16 and 5.1). (v) Provide ADF with evidence of the opening of a) a special account for the proceeds of

the ADF loan; and b) an account for Government contribution (Paragraph 5.5.1). C. Other Loan Conditions

The Government shall also:

(i) Within six (6) months of the signing of the Loan Agreement, submit to ADF the

Agreements concluded with the specialized organizations responsible for the implementation of the project components along with the first year’s Annual Work-Plans and Budget, which should be submitted in draft form to ADF for Prior approval. These implementing agencies and/or units are: Department of Extension Services, Soil and Water Management Unit, National Agricultural Research Institute, Department of Fisheries, and the National Environment Agency (Paragraphs 5.2.3 to 5.2.8).

(ii) Allocate the amount of US$80, 000 to the project on annual basis for the second and

third years of the project implementation (Paragraph 4.5.19)..

Annex 1 – Map of Project the Area

THE GAMBIA FARMER MANAGED RICE PROJECT

Pacharr

SENEGAL

SENEGAL

PROJECT AREA

International Boundary

Main Road

Project Town

Sapu

SENEGAL

Touba

Yidda Misir

a

Janjahbureh

THE GAMBIA

LOCATION MAP

This map has been prepared by the ADB Group's ststaff exclusively for the conveneince of the readers of the report to which it is attched. The denominations used and the boundaries shown do not imply, on the part of the Group and its affikliates, any judgement on the legal status of any territoy or any endorsement or acceptance of such boundaries.

10

Kanantaba

15 20 Km

Kununku

0 5

SENEGAL

Diabugu

Basse

Bansang

Jahally

Yidda Tenda

Kuntaur

Dankunku

Kudang

Sambelli Kunda

CENTRAL RIVER DIVISION

Annex 2

PROJECT ORGANISATION AND MANAGEMENT

Department of State for Agriculture

Fund Management Institution

(DOSA) (FMI)

Project Coordinating Office Social Development Fund (SDF)

Other FMIs

(PCO)

Credit Management for farm inputs, trading & milling

Project Steering Committee (PSC)

Project Implementation Unit (PIU) Micro-Finance Institution (MFI)

Central River Division (CRD)

Soil & Water Management Unit (SWMU)

Seed Technology Unit (STU)

National Agricultural Research Institute (NARI)

Village Saving & Credit Associations (VISACAs)

Indigenous Business Advisory Services (IBAS) NGOs

AEAs, SMSs, M&Es, MIS

Smallholder Rice Traders & Processors

Smallholder Rice Farmer Groups/Associations

Annex 3 Government of The Gambia

Farmer Managed Rice Project Work Schedule

Year 2005 2006 2007 2008 2009 2010 2011 Quarters 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

Project Components and Major Activities Preparatory Phase for Start-up 0.1. ADF Appraisal Report 0.2. Project Approval by ADF 0.3. Signing of ADF loan & grant agreements 0.4. Recruitment of Coordinator 0.5. Effectiveness of ADF Grant/loan 0.6. Launching of project and implementation docs

0.7. MOU with implementing/research Agencies

Development and Environmental Protection 1.1. Detailed studies and Bids -Land Dev. & Rural infr.

1.2. Procurement of contractors by ICB 1.3. Construction of works – Land Development

1.4. Construction of works – Rural Infrastructure

1.5. Recruitment of ESMP Consultant 1.6. Diagnostic study on environmental activities

1.7. Environnemental protection activities 1.8. Works supervision Project Land Cultivation 2.1. Studies (rice policy and agricultural survey)

2.2. Preparation of agreement with credit instructions

2.3. Disbursement of Credit 2.4. Recruitment of training institutions by short list

2.5. Preparation of training plans 2.6. Implementation of Training Plan

- Training of Ext/Researchers & Farmer Groups - Training of Processors, Entrepreneurs and MFIs - Internal Staff Training - External Staff Training

2.7. Study Tours 2.8. HIV/AIDS and malaria Campaigns 2.9. Adaptive Rice/Fish Research Activities 2.10. Land Cultivation Project Management

Year 2005 2006 2007 2008 2009 2010 2011 Quarters 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

3.1. Recruitment of PIU staff& Account system Establ.

3.2. Preparation of Bids for vehicles and equipment

3.3. Procurement of vehicles and equipment 3.4. Prepare TOR & Procure MIS & Eng. TA 3.5. Design & installation of MIS System 3.6. Supervision missions 3.7. Project mid-term supervision mission 3.8. Project completion mission

Annex 4 Page 1 of 2

ENVIRONMENTAL AND SOCIAL MANAGEMENT SUMMARY Brief description of the project and key environmental and social components The project aims at developing small-scale; farmer group owned and operated irrigation systems as an alternative to large publicly managed schemes by using tidal gravity flow, a low cost technology. By concentrating on production intensification on the existing land area under rice cultivation, the project will help prevent further lowland clearing. Major environmental and social impacts The negative impact inherent to tidal irrigation is the difficulty associated with water flow management. The occurrence periodicity of tides (which are of two types: daily tides lasting 5-6 hours and neap or monthly tides) being a natural phenomenon difficult to control, drainage could be unduly delayed (it takes 2-3 weeks for the water to recede depending on peak flow levels), causing waterlogging and other damages to the crops. Livestock rely on lowlands for grazing and watering since bushfires recurrently destroy pastures around the project area. The development of these lands can constitute an impediment to livestock and wildlife movement and access to an important livelihood. Moreover, trampling by cattle on bunds, plots and seedbeds causes soil erosion and accelerates canal siltation while breaking down bund structure. Livestock encroachment on cultivated plots also results in loss of seedlings and transplanted rice and subsequently causes production loss. It interferes with water control by trampling around water intake structures. The tidal flow movements affect the quality of water entering the irrigation area, particularly sediment content (besides possible salt content). Large sediment load may result in canal siltation. Over time, cleaning canals and depositing sediment on the embankments or simply irrigating with water of high sediment content can raise land level to such a height that irrigation is impaired. Farmers will resort then to frequent land leveling. Poor water intake and drainage management (alternate use of the same canal for both irrigation and drainage allows only partial control) causes waterlogging. But the impact will be insignificant because of insufficient use of agrochemicals. The risk is still there should farm input needs arise. There is also a risk of having a high incidence of water- related diseases (e.g. schistosomiasis) due to the consumption of polluted water by farmers as potable water supply points are located far away from the perimeters. Mitigation and Enhancement program Scouring of canals should be done properly and a viable maintenance policy not solely dependent on machinery needs to be put in place. Reinforcement of bushfire control and providing for passage ways and corridors for animals to access watering points, grazing buffer zones should be organized by the project to prevent them from encroaching on cultivated perimeters. To help them maximize the efficiency of water use, farmers will be trained in proper irrigation scheduling and operation planning. Careful water management through timing, controllability and predictability of water delivered to the users will be essential to the success of the project. Lack of necessary managerial and technical skills will be addressed by training a selected group of farmers to provide the needed services. Safe drinking water facilities will be provided to farmers close to rice fields. A needs assessment will be conducted during the preparation of the EMP in order to determine the adequacy of water supply facilities, specific prevention, prophylactic and treatment measures. Proper canal maintenance through weeding and lining should help avoid vector breeding and conveyance to

of 2

plots. Potential mitigating measures include: reinforcement of health centers; prophylactic and prevention measures; rehabilitation of day care centers equipped with first aid kits; wells and boreholes; latrines; advocacy and awareness campaigns, etc. Monitoring program and complementary initiatives A site-specific survey will be conducted before the commencement of project activities in order to determine environmental mitigation / enhancement measures which should be integrated with project design and implemented under the Environmental and Social Management Plan (ESMP). The National Environment Agency (NEA) will be responsible for supervising ESMP implementation. Institutional arrangements and capacity building requirements Before the commencement of project activities, an agreement will be signed between PIU and NEA to carry out the supervision of the site-specific survey aimed at facilitating ESMP implementation. Among other outputs, the survey will prepare a matrix of the potential environmental and social impacts of the project on each site (Jahaly-Pacharr, IRDP and RHIDEP) with their corresponding mitigation measures, the associated costs and time frame for effectively carrying out the mitigating measures. Special attention must be given to those beneficial impacts that can be enhanced to improve the project’s environmental and social performance. To ensure compliance with national environmental and social policies and standards as well as with the Bank’s policies and guidelines, the Monitoring Program of the ESMP includes both surveillance and monitoring activities, as well as indicators to be used to assess efficiency of the mitigation and enhancement measures during project implementation. Moreover, the implementation schedule shall be developed in co-ordination with the overall project implementation plan. NEA will facilitate a consultative workshop in Banjul (or Sapu) that will serve as a forum for consensus on the objectives and institutional arrangements for implementing the ESMP. Public consultations and disclosure requirements The project is designed to operate in a participatory approach where all activities will be implemented in close collaboration with local communities to increase their sense of ownership of the new techniques to be introduced under the project. Estimated costs Environmental Monitoring and Supervision by NEA UA 30,000 Implementation of mitigation measures UA 45,000

Total: UA 75,000

Implementation schedule and reporting

Reports on monitoring activities done by the NEA will be provided to the Project Steering Committee (PSC), the Bank, and will also be available to the public. Moreover, copies will be presented to NGOs or other interested groups.

ANNEX: 5 THE GAMBIA: FARMER MNAGED RICE IRRIGATION PROJECT

ECONOMIC ANALYSIS

WITHOUT PROJECT WITH PROJECT

Discount Discounted Discount Discounted

Rev/Ha. Cost/Ha Net Flows Factor Cash Flows Rev/Ha. Invest Cost/Ha Net Flows Increamental Factor Cash Flows

Year Dalasi Dalasi Dalasi 12% Dalasi Year Dalasi Cost Dalasi Dalasi Cashflow 12% Dalasi

1 4,500.00 3,400.00 1,100.00 1.00 1,100.00 1 0.00 3,200.00 1,480.00 -4,680.00 -5,780.00 1.00 -5,780.00

2 4,500.00 3,400.00 1,100.00 0.89 979.00 2 3,400.00 5,600.00 1,650.00 -3,850.00 -4,950.00 0.89 -4,405.50

3 4,500.00 3,400.00 1,100.00 0.80 880.00 3 4,000.00 8,600.00 1,800.00 -6,400.00 -7,500.00 0.80 -6,000.00

4 4,500.00 3,400.00 1,100.00 0.71 781.00 4 9,450.00 7,600.00 2,200.00 -350.00 -1,450.00 0.71 -1,029.50

5 4,500.00 3,400.00 1,100.00 0.64 704.00 5 9,450.00 6,400.00 2,200.00 850.00 -250.00 0.64 -160.00

6 4,500.00 3,400.00 1,100.00 0.56 616.00 6 9,450.00 4,800.00 2,200.00 2,450.00 1,350.00 0.56 756.00

7 4,500.00 3,400.00 1,100.00 0.51 561.00 7 9,450.00 2,200.00 7,250.00 6,150.00 0.51 3,136.50

8 4,500.00 3,400.00 1,100.00 0.45 495.00 8 9,450.00 2,200.00 7,250.00 6,150.00 0.45 2,767.50

9 4,500.00 3,400.00 1,100.00 0.40 440.00 9 9,450.00 2,200.00 7,250.00 6,150.00 0.40 2,460.00

10 4,500.00 3,400.00 1,100.00 0.36 396.00 10 9,450.00 2,200.00 7,250.00 6,150.00 0.36 2,214.00

11 4,500.00 3,400.00 1,100.00 0.32 352.00 11 9,450.00 2,200.00 7,250.00 6,150.00 0.32 1,968.00

12 4,500.00 3,400.00 1,100.00 0.29 319.00 12 9,450.00 2,200.00 7,250.00 6,150.00 0.29 1,783.50

13 4,500.00 3,400.00 1,100.00 0.26 286.00 13 9,450.00 2,200.00 7,250.00 6,150.00 0.26 1,599.00

14 4,500.00 3,400.00 1,100.00 0.23 253.00 14 9,450.00 2,200.00 7,250.00 6,150.00 0.23 1,414.50

15 4,500.00 3,400.00 1,100.00 0.20 220.00 15 9,450.00 2,200.00 7,250.00 6,150.00 0.20 1,230.00

16 4,500.00 3,400.00 1,100.00 0.18 198.00 16 9,450.00 2,200.00 7,250.00 6,150.00 0.18 1,107.00

17 4,500.00 3,400.00 1,100.00 0.16 176.00 17 9,450.00 2,200.00 7,250.00 6,150.00 0.16 984.00

18 4,500.00 3,400.00 1,100.00 0.14 154.00 18 9,450.00 2,200.00 7,250.00 6,150.00 0.14 861.00

19 4,500.00 3,400.00 1,100.00 0.13 143.00 19 9,450.00 2,200.00 7,250.00 6,150.00 0.13 799.50

20 4,500.00 3,400.00 1,100.00 0.12 132.00 20 9,450.00 2,200.00 7,250.00 6,150.00 0.12 738.00

21 4,500.00 3,400.00 1,100.00 0.10 110.00 21 9,450.00 2,200.00 7,250.00 6,150.00 0.10 615.00

22 4,500.00 3,400.00 1,100.00 0.09 99.00 22 9,450.00 2,200.00 7,250.00 6,150.00 0.09 553.50

23 4,500.00 3,400.00 1,100.00 0.08 88.00 23 9,450.00 2,200.00 7,250.00 6,150.00 0.08 492.00

2 4,500.0 3,400.0 1,100.0 0.0 77.00 2 9,450.0 2,200.0 7,250.0 6,150.0 0.0 430.5

25 4,500.00 3,400.00 1,100.00 0.06 66.00 25 9,450.00 2,200.00 7,250.00 6,150.00 0.06 369.00

Net Present Value 16753

EIRR 23%

ANNEX 6 Page 1 of 2

BANK GROUP OPERATIONS IN THE GAMBIA (As of March 2005) DATE OF APPROVAL

SOURCE OF FUNDS

DATE SIGNED LOAN AMOUNT

AMOUNT CANCELLED

AMOUNT DISBURSED

UNDISBURSED BALANCE

PERCENTAGE DISBURSED

DISBURSEMENT DEADLINE

TRANSPORT SECTOR 35%

28/10/76 Yundum Airport I NTF 03/11/1977 2.5 0.02 1.98 0.00 99 Completed

29/08/79 Banjul Serrakunda Highway ADB 12/03/1979 3.9 0.00 3.90 0.00 100 Completed

28/08/1980 Laminkoto-Passimus Road ADF 7.5 8.00 0.00 0.00 0 Cancelled

22/06/82 Banjul Port I ADB 13/08/92 6.5 0.02 6.98 0.00 100 Completed

22/05/89 Banjul Serrakunda Highway (Sup) ADF 28/05/89 2.11 0.00 2.11 0.00 100 Completed

27/04/82 Yundum Airport IV ADF 13/08/82 4.5 0.79 3.72 0.00 83 Completed

27/11/89 Roads Rehabilitation NTF 12/04/1989 14.51 0.03 14.39 0.09 99 Completed

30/10/91 Ins. Sup. to Min of Works & Roads Study

TAF 31/01/92 3.76 0.00 2.58 0.19 93 31/12/2005

14/12/93 Banjul Port Development II ADF 14/01/1999 16 0.45 11.67 3.88 73 31/12/2004

09/04/1997 Coastal Protection TAF 13/10/97 0.83 0.00 0.21 0.62 25 30/06/98

13/09/03 Coastal Protection Project ADF 03/10/01 9.59 0.00 0.91 8.68 90.5 31/12/05

Subtotal 71.2 9.30 47.42 4.88 77

SOCIAL SECTOR 20%

23/06/83 Education Feasibility Study ADF 15/07/83 0.64 0.25 0.39 0.00 100 Completed

27/11/86 Education I ADF 12/12/1986 4.15 0.00 4.09 0.05 98.7 Completed

14/03/90 Skills Development for Women (WID)

TAF 27/02/1990 1.94 0.00 1.99 -0.05 102.0 Completed

14/03/1990 Skills Development for Women (WID)

ADF 27/02/1990 0.46 0.00 0.20 0.26 43 Completed

26/08/92 Education II ADF 12/10/92 4.97 0.00 3.94 1.03 79.0 Completed

14/09/92 Health Sector Studies TAF 14/10/92 0.69 0.00 0.69 0.00 100 Completed

11/09/2002 Education III ADF 12/11/2002 10.00 0.00 3.00

29/10/92 Rehab. of Health Training Facilities ADF 23/03/92 7.09 0.00 5.45 1.63 77.0 Completed

12/10/1997 Poverty Reduction ADF 13/02/98 3.21 0.00 2.80 0.41 87.0 31/12/2003

12/10/1997 Health II ADF 13/02/98 7.00 0.00 2.08 4.91 29.82 31/12/2003

18/02/2000 Community Skills Development ADF 24/03/2000 4.40 0.00 0.49 3.91 11.14 30.06.2003

18/02/2000 Community Skills Development TAF 24/03/2000 1.45 0.00 0.07 1.38 4.78 30.06.2006

Subtotal 46.00 0.25 22.19 13.53 61.0

ANNEX 6 Page 2 of 2

DATE OF APPROVAL

SOURCE OF FUNDS

DATE SIGNED LOAN AMOUNT

AMOUNT CANCELLED

AMOUNT DISBURSED

UNDISBURSED BALANCE

PERCENTAGE DISBURSED

DISBURSEMENT DEADLINE

PUBLIC UTILITIES 12% 22.36 0.51 20.13 0.71 94

14/10/75 Power I ADB 01/05/1976 2.00 0.00 2.00 0.00 100 Completed

23/01/79 Power II ADB 21/02/79 5.00 0.02 4.98 0.00 100 Completed

24/04/80 Banjul Sewerage and Drainage ADF 24/06/80 7.37 0.27 7.10 0.00 96 Completed

25/11/87 Greater Banjul Water Supply ADF 20/04/88 5.62 0.22 5.40 0.00 96 Completed

21/10/93 Engineering Studies for Rural Elect TAF 01/04/1994 1.37 0.00 0.66 0.71 48 31/12/2000

14/12/00 Rural Electrical Project ADF 19/01/01 2.97 0.00 0.16 2.81 5.0 28/02/2005

30/12/00 Rural Electrification Study ADF/TAF 26/11/02 0.749 0.00 0.16 2.81 5.0 30/06/04

12/06/02 Water Supply & Sanitation ADF/TAF 08/08/2002 1.18 0.00 0.00 1.18 100 30/06/2004

30/10/2002 Renewable Energy Study ADF/TAF - 0.75 0.00 0.00 0.75 100 30/10/2005

MULTI-SECTOR 10% 19.42 0.25 17.48 0.94 95

26/12/86 Multi -Sector Rehabilitation ADF 12/12/1986 9.21 0.00 9.211 0.00 100 Completed

16/01/90 SAL II ADF 25/01/90 6.45 0.25 6.199 0.00 96 Completed

20/02/88 Institutional Building for SDA TAF 13/02/89 2.00 0.00 1.969 0.03 98 Completed

14/10/98 Capacity Building Project TAF 19/11/200 0.76 0.00 0.50 0.38 78 31/12/2002

AGRICULTURE 20% 39.34 6.20 25.12 8.25 74

09/10/1974 Cotton Production Development ADF 20/11/1974 1.84 0.56 1.29 0.00 100 Completed

18/03/82 Jahally Pacharr Rice ADF 13/08/1982 4.24 0.01 4.24 0.00 100 Completed

27/10/83 Livestock Development ADF 02/07/1983 8.59 0.03 8.57 0.00 100 Completed

25/08/83 Fishing Development ADF 06/02/1984 7.32 5.60 1.72 0.00 100 Cancelled

23/02/88 Rice Development ADF 29/03/1989 4.80 0.00 4.74 0.06 99 30/06/97

19/11/96 Lowland Agric Dev. Project ADF 20/12/1996 4.00 0.00 3.99 0.027 99.9 31/12/2005

14/07/1999 Livestock Development Study ADF 12/10/1999 0.58 0.00 0.36 0.22 62 05/03/2003

27/10/1999 Peri-urban Smallholder Improvement ADF 08/11/1999 5.07 0.00 1.015 4.054 20.04 31/12/2006

17/05/2000 Artisanal Fisheries Dev. Project NTF 19/01/2001 2.90 0.00 0.24 2.66 8.17 31/12/2006 9/06/2004 Watershed Management Project NTF 9/12/2004 4.95 0.00 0.00 4.95 0.00 31/12/2011

INDUSTRY 3%

29/11/1979 Groundnut Processing Industry ADF 12/03/1979 4.61 3.45 1.15 75 Cancelled

22/12/00 Tourism Master Plan Study TAF 22/11/2000 0.815 0.00 0.00 0.00 0 31/12/03

GRAND TOTAL 210.055

19.93 127.00 38.45 60.4

Annexe

CONFIDENTIAL AFRICAN DEVELOPMENT FUND ADF/BD/WP/2005/24/Add.1

26 April 2005 Prepared by: OCAR/GECL

Original: English

Probable Date of Board Presentation 27 April 2005 FOR CONSIDERATION

MEMORANDUM TO : THE BOARD OF DIRECTORS FROM : Cheikh I. FALL Secretary General SUBJECT : THE GAMBIA - PROPOSAL FOR AN ADF LOAN OF UA 5,000,000 AND AN

ADF GRANT OF UA 500,00000 TO FINANCE THE FARMER MANAGED RICE IRRIGATION PROJECT *

Please find attached an addendum to the above-mentioned Appraisal Report.

Attach:

Cc: The President

* Questions on this document should be referred to:

Mr. C. R. SPENCER Director OCAR Extension 2036 Mr. S. Z. MOUSSA Manager OCAR.2 Extension 2143 Mr. A. GOMBE Agronomist OCAR.2 Extension 3246 Mr. M. BASALIRWA Financial Analyst OCAR.2 Extension 2701

SCCD: G. G.

THE GAMBIA ADDENDUM TO THE FARMER-MANAGED RICE IRRIGATION

PROJECT I. Introduction 1.1 This Addendum complements the appraisal report of The Gambia’s Farmer- Managed Rice Irrigation Project (Board Document ADF/BD/WP/2005/24, dated 24 March, 2005), and is prepared to inform the Board about the recent developments in the country’s programme for promoting sustainable socio-economic growth and fighting poverty through the implementation of the PRSP. 1.2 As will be recalled, the 2002-2004 Country Strategy Paper (CSP) for The Gambia was approved by the Boards in July 2003. The CSP focused on (i) assisting improve the fragile macroeconomic environment through policy-based operation; (ii) supporting increased agricultural productivity and incomes through projects that promote food self-sufficiency; (iii) improving access to quality education and skills development, particularly for girls and pupils in the poorest areas of the country; and (iv) strengthening capacity in the public sector, especially for the Departments and key Institutions involved with the implementation of the poverty reduction programme. The Farmer-Managed Rice Irrigation Project, focusing on food security, is fully consistent with the 2002-2004 Country Strategy Paper, based on the country’s second Strategy for Poverty Alleviation ( SPA II ), or PRSP. The SPA II embodies the commitment of the Government to eradicate poverty by creating income-earning opportunities in the main sectors of agriculture, tourism, trade and in the informal and small-scale enterprises sectors. The SPA II also outlines further concrete measures that will be implemented to improve food security, including increasing the domestic production of rice – the staple food crop of the country. The Gambia has registered a number of positive developments in implementing its poverty reduction programme, although there has also been some set-backs in the implementation of reforms. II. Recent Socio-Economic Development 2.1 Economic Growth: The Gambia continues to implement the various macroeconomic and structural reform policies. As a result, real GDP growth recovered substantially from a negative 3.2 percent in 2002 to 6.7 percent in 2003 and to a robust 7.1 percent in 2004. The strong performance was driven mainly by the growth in the agricultural sector, which grew on average by about 9.0 percent per annum in 2003 and 2004. The country is expected to sustain the good economic performance over the medium term, 2005-2007, on account of continued good performance in the agricultural sector, which employs over 68 percent of the labor force, generates nearly 40 percent of total exports and about two-thirds of Gross Domestic Product. 2.2 The country is making progress towards the attainment of the Millennium Development Goals (MDGs), which are closely linked to the PRSP process. Budget allocations, especially for 2003 and 2004, reflect growing trends in increasing the percentage of spending for the social sectors, health and education. Chronic malnutrition has also declined from 23 percent in 1996 to 19 percent in 2002. The investment that will be made through the Farmer Managed Rice Irrigation project will further assist in consolidating the Gambia’s GDP growth over the medium term and in meeting the Millennium Development Goals (MDGs), especially those relating to malnutrition and food security.

2

2.3 Macroeconomic Management: Fiscal policy has strengthened considerably since 2004. The fiscal deficit, including grants and on a commitment basis, improved significantly from a deficit of 13.9 percent of GDP in 2001 to 4.7 and 3.8 percent of GDP in 2003 and 2004, respectively. Inflation declined substantially from 17.0 percent in 2003 to 6.6 percent by February 2005. The exchange rate has remained fairly stable since September 2004. Gross international reserves rose from US$63 million in 2001 to US$77.8 million in 2004 or the equivalent of nearly five (5) months of import cover by end December 2004. The favorable turnaround in the economy, during 2002-2004, is expected to persist over the medium term on condition that the authorities continue to remain vigilant in implementing the agreed reform programme, which is necessary in facilitating the reduction in the high interest rates that have prevailed since 2002. 2.4 Structural Reforms: Progress has been made since 2002 in the implementation of structural reforms. The Government prepared and is implementing a comprehensive National Governance Programme (NGP), which is fully consistent with the Constitution of The Gambia. Specific achievements in the implementation of this programme include the establishment and operationalization of the National Governance Secretariat, which is under the purview of the Office of the President. A Governance Task Force has also been established, and mandated with (i) preparing a time-bound governance programme of action and identifying the required capacity for the implementation of the governance programme; and (ii) facilitating inter-institutional collaboration and co-ordination. In addition, the National Council for Civic Education has been established, and continues to conduct civic and human rights education throughout the country. The focus of such education is to increase the awareness of the population about their constitutional and civic rights, and the roles and responsibilities associated with good citizenry. 2.5 Strengthening Key Aspects of Public Expenditure Management: With technical assistance from the IMF, the Government prepared and enacted the Organic Budget Law (OBL) in 2004 that focuses on improving transparency and accountability in the country’s budgetary process. The OBL was prepared following the recommendations of the Country Financial Accountability Assessment (CFAA) that was prepared in 2003. Moreover, the Government prepared the Revenue Authority Bill, which fundamentally reorganized public revenue management through the establishment of an independent National Revenue Authority (NRA) in 2004. Some progress has further been made in strengthening governance in the Central Bank of The Gambia, including the enhancement of internal controls, revisions to the central bank act and greater provision of information to the public. The financial sector remains relatively sound and the regulatory environment was strengthened by the passage of the Financial Institutions, Insurance and Money Laundering Act in 2003. More recently, in March, 2005, the Government established a fully-fledged Anti-Corruption Commission, which has already started operations. The Government has now embarked on implementing the decentralization programme, which is consistent with the National Governance Programme.

3

III. Performance of Bank Group Portfolio 3.1 The overall implementation of the portfolio continues to be satisfactory and achieved a score rating of 2.3 during the Bank Group Portfolio Review of 2003. The portfolio has also a relatively low Project-at-Risk (PAR) rate, which according to the 2003 Annual Portfolio Performance Review (APPR) was only 9.0 percent, compared with the Bank Group’s overall average of 41.7 percent. The disbursement rates for the on-going portfolio are also satisfactory standing at 84 percent for the ADB financed projects, 73 percent for the ADF and 41 percent for the NTF. The satisfactory performance of the portfolio is attributed to the frequent and rigorous supervision missions conducted by the Bank, especially in 2003 and 2004. The Bank will continue to work with the Government in improving the soundness and overall development effectiveness of the portfolio, through retraining of project staff, increased supervisions and by bringing to closure any aged operations. To enhance the capacity for project implementation, the Bank Group has approved the institutional support projects to the Ministries of Finance and Works. IV. Relationship with Development Partners: 4.1 The Gambia, during 2002/03, experienced a major set-back in its relations with the IMF when its PRGF went off-track on account of the following factors: (i) delayed auditing of the 2001 and 2002 accounts of the Central Bank of The Gambia; (ii) disagreements between the government and the IMF on statistical data issues. Since then, the country has made considerable progress in restoring relations with the Bretton Woods Institutions. With respect to the IMF, arising from the statistical data issue, the country repaid in full, by November 2004, the non-complying disbursement of 2003 under the PRGF totaling SDR 6.87 million or about US Dollar 10.1 million. In addition, in consultation with the IMF, the country commissioned Deloitte and Touche to conduct the delayed audit of the Central Bank of The Gambia accounts for 2001 and 2002. The country is currently in the process of negotiating for a Staff Monitored Programme with the IMF, which upon successful implementation over a period of six months, should translate into a Poverty Reduction and Growth Facility (PRGF). 4.2 The country has maintained cordial relationship with the World Bank, including work done by the World Bank in collaboration with the ADB and DfID in the preparation of the Country Financial Accountability Assessment (CFAA) in 2003. The CFAA is currently being actively implemented by the Government. The World Bank is also appraising the Community Driven Development Project (CDD), which is scheduled for presentation to the World Bank Board during 2005. V. Conclusion: 5.1 The Gambia has made substantial recovery since the set-back of 2002/03, when its PRGF went off track. The IMF and the World Bank are engaged in extensive dialogue with the authorities, and substantial support is required from the development partners to enable the country sustain the implementation of its poverty reduction strategy. Rice production is an important activity in the country’s agricultural sector. The Farmer- Managed Rice Irrigation Project will therefore contribute in increasing domestic production, raising rural incomes and contributing to poverty reduction in the rural areas. 5.2 The Board of Directors ise invited to take note of this Addendum.

Gambia - Farmer Managed Rice Irrigation Project - Appraisal Report

Documents

Transcript of Gambia - Farmer Managed Rice Irrigation Project - Appraisal Report