Knowledge & Technology Exchange for enhanced quality of Knowledge & Technology Exchange for enhanced quality of IFAD/ICARDA operations in the NENA regionIFAD/ICARDA operations in the NENA region

Near East and North Africa DivisionNear East and North Africa Division

26-29 October 200926-29 October 2009Aleppo, SyriaAleppo, Syria

IFAD Strategic Framework and Operating Model

Country Strategy

Strategic objective: poor rural men and women in developing countries have better access to, and have developed the skills and organization to take advantage of: Natural resources (land and

water);

Improved agricultural technologies and effective production services;

A broad range of financial services;

Transparent and competitive agricultural input and produce markets;

Opportunities for rural off-farm employment and enterprise development; and

Local and national policy and programming processes.

IFAD’s Contributions to Development Outcomes

In 2008, 200 on-going programmes and projectsOn-going investment $ 3.4 billion

Natural resource management3.86 million ha of land under improved management practices470 thousand ha of land under constructed/rehabilitated irrigation schemes

Agricultural technologies1.72 million people trained in crop production practices/technologies 1.03 million people trained in livestock production practices/technologies

Rural financial services4.35 million of active borrowers 5.44 million of voluntary savers

Marketing & Microenterprise 15 000 km of roads constructed/rehabilitated25 000 marketing groups formed/strengthened 162 000 people trained in business and entrepreneurship 19 000 enterprises accessing facilitated non-financial services

Policies and institutions338 000 people trained in community management topics 24 000 village/community action plans prepared

IFAD’s Near East and North Africa Division

1. Near East and North Africa region (NENA): Algeria, Cyprus, Djibouti, Egypt, Gaza and the West Bank, Iraq, Israel, Jordan, Kuwait, Lebanon, the Libyan Arab Jamahiriya, Malta, Morocco, Oman, Qatar, Saudi Arabia, Somalia, The Sudan, Syria, Tunisia, United Arab Emirates and Yemen.

2. Central and Eastern Europe and Newly Independent States region (CEN): Albania, Armenia, Azerbaijan, Bosnia and Herzegovina, Croatia, Georgia, Republic of Moldova, Romania, the Former Yugoslav Republic of Macedonia, and Turkey.

Poverty and Regional Trends: NENA

• Increasing water scarcity, declining soil fertility, vulnerability to climate change

• Increasing food prices

• High oil prices benefiting a few Arab countries, but hurting the oil-importing economies

• High youth unemployment, although declining in recent years

• Education, knowledge, and IT lagging behind other regions

• Wide gender gap still exists

• Governance issues

• Conflict (Iraq, Lebanon, Somalia, Sudan, West Bank & Gaza)

The Rural Poverty Report indicates:- 25% of the region’s population is estimated to be poor- 58% of the poor live in rural areas (about 52 million people)- 34% of the rural population is poor compared to 18% of the urban population

Rural poverty is decreasing much more slowly than urban poverty.

Regional Trends:

PN Investment Portfolio (October 09)

16 countries: 9 NENA and 7 CEN

43 projects

$ 610 mln in lending

$ 700 mln co-financing

$ 26 mln in grants

80% of portfolio directly supervised

(100% by 2010)IFAD instruments:

1. Loans - rates: Highly Concessional, Intermediate, Ordinary

2. Grants - Regional and Country-specific

NENA

• Management of natural resources (land and water)

• Increasing agricultural production and productivity

• Community-based and area-based rural development

• Income-generation activities

• Rural financial services

Current thematic focus of PN operations

CEN

• Rural financial services

• Market linkages for rural smallholders (supply chain

management)

• Non-farm rural economy through support of small-medium

enterprises

• Commercially-derived infrastructure

Country Project Name

IFAD Financing (USD '000)

Total Co-financing(USD '000)

Board Approval

Project Completion Date

Cooperating Institution

1 Programme for Sustainable Development in Rural Mountain Areas 8 000 16 254 13 Dec 05 31 Mar 12 IFAD/IFAD2 Mountain to Markets Programme 9 600 8 345 11 Sep 08 30 Jun 14 IFAD/IFAD3 Rural Areas Economic Development Programme 15 301 13 420 02 Dec 04 30 Sep 09 IFAD/IFAD4 Farmer Market Access Programme 12 400 19 719 12 Sep 07 30 Jun 13 IFAD/IFAD5 North-East Development Project 12 555 12 593 09 Sep 04 30 Sep 11 IFAD/IFAD6 Rural development Project for the North-West 17 196 15 129 13 Dec 07 31 Mar 14 IFAD/IFAD7 Rural Enterprise Enhacement Project 12 617 11 870 20 Apr 06 31 Dec 12 IFAD/IFAD8 Rural Livelihoods Development Project 11 113 14 543 17 Dec 08 IFAD/IFAD9 Microfinance and Microenterprise Development Project 3 597 247 12 Dec 02 31 Dec 12 UNOPS

10 Mobilisation of Surface Water and Sustainable Land Management - PROMES-GDT 3 000 8 637 13 Dec 07 31 Dec 14 UNOPS11 West Noubaria Rural Development Project 18 485 36 266 23 Apr 02 30 Jun 11 IFAD/IFAD12 Upper Egypt Rural Development Project 16 135 3 714 14 Dec 06 30 Sep 15 IFAD/IFAD13 Gaza and the West Bank Participatory Natural Resource Management Programme 8 793 16 390 23 Apr 98 30 Jun 11 IFAD Pilot14 Rural Development Programme Mountainous and Highland Areas 8 000 1 159 13 Sep 00 31 Mar 10 IFAD/IFAD15 Rural Development Project 10 000 24 705 19 Apr 05 30 Jun 10 World Bank16 Jordan Agricultural Resource management Project-Phase II 11 777 30 191 02 Dec 04 30 Jun 13 IFAD/IFAD17 Lebanon Hilly Areas Sustainable Development Project 4 605 12 040 15 Sep 09 IFAD/IFAD18 Agricultural Revitalisation Project 14 892 3 274 17 Dec 03 31 Mar 13 IFAD/IFAD19 Rural Business Development Project 13 024 7 282 13 Dec 05 30 Sep 11 IFAD/IFAD20 Rural Financial Services 13 243 5 712 11 Sep 08 31 Mar 14 IFAD/IFAD21 Rural Development Project Taourirt - Tarforait 19 520 29 900 04 Dec 96 31 Dec 09 UNOPS22 Rural Development Project in the Mountain Zones of Al-Haouz Province 18 028 12 215 07 Dec 00 30 Sep 10 IFAD/IFAD23 Livestock and Rangelend Development Project in the Eastern Region - Phase II 6 361 2 878 11 Sep 03 31 Dec 10 IFAD/IFAD24 Rural Development Project in the Eastern Middle Atlas Mountains 16 206 28 003 13 Dec 05 31 Mar 15 IFAD/IFAD25 Rural Development Project in the Mountain Zones of Errachidia Province 18 757 8 288 12 Sep 07 30 Sep 14 IFAD/IFAD26 South Kordofan Rural Development Project 18 024 9 376 14 Sep 00 31 Mar 11 IFAD/IFAD27 Gash Sustainable Livelihoods Regeration Project 24 946 14 089 18 Dec 03 30 Sep 12 IFAD/IFAD28 Western Sudan Resources Management Programme 25 463 23 492 02 Dec 04 31 Dec 13 IFAD/IFAD29 Butana Integrated Rural Development Project 24 799 5 055 14 Dec 06 30 Sep 16 IFAD/IFAD30 Gum Arabic 3 000 7 880 15 Sep 09 World Bank31 Southern Sudan Livelihoods Development Project 13 539 12 393 11 Sep 08 31 Mar 15 IFAD/IFAD32 Badia Rangelands Development Project 16 604 84 754 23 Apr 98 31 Dec 10 IFAD/IFAD33 Idleb Rural Development Project 17 551 27 268 11 Dec 02 31 Dec 10 IFAD/IFAD34 North Eastern Region Rural Development Project 20 135 37 983 18 Apr 07 31 Mar 15 IFAD/IFAD35 PRODESUD 18 746 25 591 05 Sep 02 30 Jun 10 UNOPS36 Integrated Agriculture Development Project in the Governorate of Siliana - Phase II 15 490 23 453 13 Dec 05 30 Jun 13 UNOPS37 Sivas-Erzincan Development Project 13 079 16 964 11 Sep 03 31 Mar 12 IFAD/IFAD38 Diyabakir, Batman & Siirt Development Project 24 100 12 814 14 Dec 06 31 Dec 12 IFAD/IFAD39 Al-Mahara Community Development Project 12 241 5 555 09 Dec 99 30 Sep 09 UNOPS40 Dhamar Participatory Rural Development Project 14 015 8 642 05 Sep 02 30 Sep 11 IFAD/IFAD41 Al-Dhala Community Resource Management Project 14 349 8 445 09 Sep 04 31 Mar 14 World Bank42 Pilot Community-based Rural Infrastructure Project in Highland Areas 12 908 1 048 19 Apr 05 31 Mar 11 UNOPS43 Rainfed Agriculture and Livestock Project 16 582 25 572 12 Sep 07 31 Mar 14 World Bank

608 776 693 148PN Total

PN Ongoing Project Portfolio - October 2009

Morocco

Azerbaijan

Bosnia and Herzegovina

Djibouti

Yemen

Albania

Armenia

Sudan

Syria

Tunisia

Turkey

Egypt

Georgia

Moldova

Co-financing

Main PN project co-financiers

Name Amount(USD '000)

Governments 276 399

OFID 109 509

Beneficiaries 100 742

AFESD 91 006

World Bank 36 600

Domestic Financial Institutions 23 483

GEF 12 546

Netherlands 11 187

Total 693 148

Governments39%

OFID16%

Beneficiaries15%

AFESD13%

World Bank5%

Netherlands2%

OthersGEF2%

Domestic FinancialInstitutions

3%

•Improving agricultural productivity and food

security

•Reducing vulnerability to climate change,

addressing water scarcity

•Providing microfinance for the rural poor

•Reducing unemployment, particularly among rural

youth

•Linking small growers with domestic and

international markets

Thematic Priorities for NENA

Crosscutting issues:

•Participatory NRM and community-driven development•Gender•Decentralization and local governance•Focus on mountain areas, rangelands, rainfed, and

disadvantaged areas

Thematic priorities for CEN

• Rural financial services

• Market linkages for rural smallholders

• Non-farm rural economy through

support of small-medium enterprises

• Commercially-derived infrastructure

Crosscutting issues:

• Private-sector and local institutional development• Support to civil society and local governance• Assisting countries in gearing-up to EU accession or access to EU markets • Focus on mountain and disadvantaged areas• Channelling remittances to rural areas?

IFAD Grants to ICARDA over three decades

44 Grants for over USD 37 million

14 198 053

6 724 267

16 083 018

0

2 000 000

4 000 000

6 000 000

8 000 000

10 000 000

12 000 000

14 000 000

16 000 000

18 000 000

1979-1989 1990-1999 2000-2009

Grants to ICARDA by thematic priority

Share by grant amounts

76%

3%

9%

12%Applied research andtechnology transfer

Capacity Building

Value Chain

Natural Resource Mangement

Share by number of grants

278

5

4

Historic division of IFAD Grants to ICARDA by region1979-2009: 44 Grants for USD 37

million

2009: 11 ongoing Grants for USD 8.7 million

28.7 million 2.7 million

1.2 million

4.2 million

Near East and North Africa

Asia

Latin America

Global

3.5 million

2.7 million 2.6 million

Near East and North Africa

Asia

Latin America

Global

ICARDA ongoing Grants in PN Portfolio

13 762 00012 158 583

1 930 000 1 577 0000

2 000 000

4 000 000

6 000 000

8 000 000

10 000 000

12 000 000

14 000 000

Regional Country

ICARDA

PN Grant Portfolio

7 Grants for USD 3.5 million

USD %

1 952 RIGulf countriesand Yemen

Programme for Technology Transfer to Enhance Rural Livelihoods and Natural Resource Management in the Arabian Peninsula O.Zafar 18/04/2007 28/11/2007 31/12/2012 30/06/2013 1 500 000 291 988 19% 3 885 804

2 961 RI Sudan Poverty asessment in Sudan R. Omar 26/06/2007 28/09/2007 30/09/2009 31/12/2009 192 000 172 000 90%

3 964 VC NENA RegionCommodity Chain Analysis for Selected Medicinal and Aromatic Plants (MAPs) M. Kherallah 11/07/2007 09/10/2007 31/12/2009 30/06/2010 200 000 180 000 90%

4 1001 RI Iraq

Improved livelihoods of small producers through Integrated Pest Management (IPM) and organic fertilisation A. Abdouli 13/12/2007 06/11/2008 31/12/2012 30/06/2013 1 185 000 0 0%

5 939 VC TunisiaRehabilitation, conservation and promotion of aromatic and medicinal M. Nourallah 22/12/2006 23/05/2008 31/05/2010 30/11/2010 200 000 80 000 40%

6 1069 RI NENA RegionAssisting Small farmers for greater food security in the arab countries M. Kherallah 19/12/2008 19/12/2008 31/12/2009 30/09/2010 182 000 163 800 90%

7 1133 CIB NENA Region

Knowledge and technology exchange for enhanced quality of ICARDA/IFAD operations in the NENA region L. Khayased. 17/06/2009 23/06/2009 31/03/2010 31/12/2009 48 000 43 000 90%

3 507 000 930 788 27% 3 885 804

Amount USD Co-financingDisbursedApproval Effectiveness Completion ClosingBenefiting Programme name Grant Manager

TOTAL PN/ICARDA Ongoing grants

# No. Type

Three thematic areas

Research & Technology Transfer Value Chain SupportCapacity Building

ICARDA ongoing Grants in PN Portfolio

PN 2007-2012 Lending Programme

Country Board USD Country Board USD Country Board USD Country Board USDLoans Loans Loans Loans

Lebanon Sept EB 4.010 Yemen April EB 11.000 Djibouti April EB 3.000 Lebanon April EB 5.500Sudan (North) Sept EB 3.000 Armenia Sept EB 15.500 Moldova April EB 20.000 Yemen April EB 10.500Sudan Dec EB 12.960 Syria Dec EB 31.000 Georgia April EB 9.000 Albania Sept EB 16.000Egypt Dec EB 47.000 Morocco Dec EB 30.000 Azerbaijan April EB 23.500 Sudan Dec EB 8.000Turkey Dec EB 19.220 Yemen Dec EB 11.000 Sudan Sept EB 13.000 Egypt Dec EB 30.000Georgia Dec EB 8.500 Sudan Dec EB 12.000 Egypt Sept EB 40.000Yemen Dec EB 7.490 Azerbaijan 23.500 Bosnia & Herzeg Dec EB 15.500

Turkey Dec EB 24.800

Total 102.180 Total 134.000 Total 148.800 Total 70.000

Djibouti Reserve 3.000Moldova Reserve 20.000 Lebanon Reserve 5.500Georgia Hidden Reserve 9.000 Albania Reserve 16.000

Fragile "States" Fragile "States"Somalia Res. April EB 2011 6.000 Somalia April BE 2011 6.000WB and Gaza Res. Sept EB 2011 5.000 WB and Gaza Sept BE 2011 5.000Iraq Res. Sept EB 2011 tbd Iraq Sept BE 2011 tbd

LC Grants LC Grants LC Grants LC GrantsLebanon 0.600 0.500Egypt 1.000 Syria 0.500Georgia 0.200 MoroccoTotal 1.800 Total 1.000 Total Total

RB-Cosop RB-Cosop RB-Cosop RB-Cosop

Sudan April EB Azerbaijan April EB Turkey* April EB Egypt April EBSyria Dec EB Yemen April EB

* to be confirmed following consultationswith GoT end-2009 beginning 2010.

2011 201220102009

Thematic focus of pipeline 2009-2012 - NENA

Egypt: Irrigation; Rural finance, SME, Private sector partnership (2009, 2011 and 2012)

Lebanon: Natural resource management, Water access (2009 and 2012)

Morocco: Rural development in mountain areas, Rural finance, Microentreprise development, Natural resource management, Market access (2010)

Palestine: Natural resources management, Value chain development,

Financial services (2009 and 2010)

Somalia: Watershed management, community driven development (2010 and 2011)

Sudan: Agriculture development and irrigation; market access for smallholders; Value Chain Development (2009, 2010, 2011 and 2012)

Syria: Natural resource management, Improved market access (2010)

Yemen: Value chain development and market access ; Fisheries development (2010 and 2012);

Albania: Supply chain development, Rural finance, Private sector development, EU accession, Mountain Areas development (2011 and 2012)

Armenia: Equity funds, Commercially-derived infrastructure (2010)

Azerbaijan: Value chain development, Foreign market linkages (2010 and 2011)

Bosnia and Herzegovina: Value chain development (2011)

Georgia: Rural finance, Rural infrastructure (2009 and 2011)

Moldova: Remittances and Equity/Investment development (2010 and 2011)

Thematic focus of pipeline 2009-2012 - CEN

IFAD interventions in the NENA region PN strategy and support for Rural Finance

SYSTEMIC IMPACT development of the rural financial sector

DIRECT IMPACT increased access of farmers and SME’s to rural finance increased farmer incomes & SME revenues

Entry points and enabling

conditions

Policy dialogue Incentives for

PFIs/ MFIs to extend rural outreach

Knowledge sharing of concepts/best practices

Provide enabling conditions (business advisories, commercially-derived infrastructure, improved legal framework for business transactions)

Funding methodologies

Credit lines to intermediary banks/microfinance institutions

Refinancing Facility Funds

Venture Capital Funds

Support to Savings and Credit Associations, Village Credit Funds, Community Development Associations

Constraints

Lack of institutions providing rural financial services

Lack of long-term capital

Lack of “credit culture”

Presence of state-owned banks that subsidise credit but do not reach out to small farmers and SMEs (NENA)

IFAD potential for scaling up in the NENA region PN experiences in Value Chain Development

Policy advise and advocacy; institutional partnerships

Market derived infrastructure at various strategic links in the chain (roads, irrigation,

etc.)

PA support Certification Advisory services Financial services

Business services Certification Financial services Market information

Primary Production(Producers' Associations (PAs)

or Individual Farmers)

Agro-processing(Micro, Small or Medium Scale

Enterprises)

Markets(Domestic & Export)

IFAD potential for scaling up in the NENA region- selected examples

Project Potential Benefits Risks Est. Cost

YemenDhamarParticipatoryRuralDevelopmentProject

Infrastructure development Expansion of private veterinary

services at community level Expansion of community

micro-finance schemes

Direct benefits to about 35,000 people per USD 1.0 million of civil works

Small injections of capital into savings & credit groups will create substantial economic benefits and local multiplier effects

Low risk of poor management and O&M; will be transferred to community committees

Low risk of unsustainability; existing sustainable model to be replicated and upscaled

Risk of capital erosion, to be mitigated by strong financial supervision

USD 3m

SudanSouth Kordofan

Rural Development Project

Establishment of a local development fund to finance basic services on cost sharing basis with communities

Supporting recurrent costs of multi-disciplinary extension teams

100 community organizations established, registered and operational

Access to productive and social services for approx 20,000 households

Low risk as Govt agencies especially extension dept in State Ministry of Agriculture well trained in the participatory planning and implementation approach

USD 5m

Syria

Badea Rangelands Development Project

Rangeland Development: rehabilitation of native plant cover and introduction of management technologies to ensure a rapid healing of the ecosystems and increase in forage output

Sustained rehabilitation of the Syrian Badia

Demonstrated effectiveness of a replicable and sustainable participatory approach to planning, implementation and monitoring

Slow adoption of the participatory approach by the elite herders mitigated by the fair representation of small herders in the Rangeland Management Committee

USD 5m

Project Potential Benefits Risks Est. Cost

JordanAgricultural Resources Management Project in Karak and Tafileh – Phase II

Rural financial services and expansion of community micro-finance schemes

Support to fruit orchard establishment

Community infrastructure

Expand outreach and innovativeness of rural financial services

Enhance watershed management and improve agricultural productivity

Address community priority needs that are currently unmet and face financing gap

Minimal risks relate to sustainability:

- for rural finance activities: capacity of local MFIs to extend, develop and expand services to rural clients over the long-term;

- for agriculture components: volatility of input and output prices;

- for rural roads and community

USD 3m

SomaliaSomaliland Integrated Community Development Programme

Watershed management works

Agricultural production and marketing

Decentralized planning, implementation and monitoring

Build on achievements, innovations and successes from phase I and replicate high-impact activities

Expand number of villages to be reached. Institutional strengthening will enhance prospects for sustainability

Minimal risks as listed above as well as infrastructure: district support and community follow- through on decentralized O&M arrangements

USD 4m

IFAD potential for scaling up in the NENA region- selected examples

Looking Forward

IFAD will act vigorously to get into partnerships with organizations interested in increasing the pro-poor/pro-employment content of their work, with emphasis on the productive and sustainable use of natural resources

•Thank youContact:Nadim Khouri, DirectorNear East and North Africa Division, IFADn.khouri@ifad.org

00 39 06 5459 2321