Document of The World Bank FOR OFFICIAL USE ONLY EUROPEAN UNION FOOD CRISIS RAPID RESPONSE FACILITY TRUST FUND EMERGENCY PROJECT PAPER

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Document of The World Bank FOR OFFICIAL USE ONLY Report No GW EUROPEAN UNION FOOD CRISIS RAPID RESPONSE FACILITY TRUST FUND EMERGENCY PROJECT PAPER ON A PROPOSED GRANT UNDER THE GLOBAL FOOD CRISIS RESPONSE PROGRAM IN THE AMOUNT OF 2.87 MILLION (US$4.28 MILLION EQUIVALENT) TO THE REPUBLIC OF GUINEA-BISSAU FOR AN EMERGENCY FOOD SECURITY SUPPORT PROJECT Agriculture and Rural Development Unit Country Department AFCF1 Africa Region February 22, 2010 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

2 CURRENCY EQUIVALENTS (Exchange Rate Effective October 15, 2009) Currency Unit = CFA franc (CFAF) US$1 = CFAF = US$ = CFAF 656 FISCAL YEAR January 1 December 31 ABBREVIATIONS AND ACRONYMS AfDB BOAD BP CBMP CBO CDD CGIAR CFA CQS CSB DA DGCP ESMF EFSSP EPP EC EUFRF FAO FIAL FM FMFA FMS FPCR FY GDP GEF GFRP GoGB HIPC IBRD IC ICB IDA IFAD African Development Bank Banque Ouest Africaine de Développement (West African Development Bank) Bank Policy Coastal and Biodiversity Management Project Community-Based Organization Community Driven Development Consultative for International Agriculture Research Communauté Financière Africaine (Financial Community of Africa) Consultants Qualification Selection Corn Soya Blend Designated Account Direcção Geral de Concursos Publicos (Goverment Procurement Unit) Environmental and Social Management Framework Emergency Food Security Support Project Emergency Project Paper European Commission European Union Food Crisis Rapid Response Facility Trust Fund Food and Agriculture Organization of the United Nations Fundo de Initiatives Ambientais Locais (Local Environmental Initiatives Funds) Financial Management Financial Management Framework Agreement Financial Management Specialist Food Price Crisis Response Trust Fund Fiscal Year Gross Domestic Product Global Environment Facility Global Food Crisis Response Program Government of Guinea-Bissau Heavily Indebted Poor Country International Bank for Reconstruction and Development Individual Consultant International Competitive Bidding International Development Association (World Bank Group) International Fund for Agricultural Development ii

3 IFRs IITA IRRI ISA ISN ISR M&E MoARD MIS MS NCB NGO OP PAIGC PDO PEMFAR PER PIU POM PRRO PSC RAP SISA SOE TCU TOR UN UNDP WAEMU WARDA WFP WHO Interim un-audited Financial Reports International Institute for Tropical Agriculture International Rice Research Institute International Standards of Auditing Interim Strategy Not Implementation Status Report Monitoring and Evaluation Ministry of Agriculture and Rural Development Management Information System Moderately Satisfactory National Competitive Bidding Non-Governmental Organization Operational Policy Partido Africano da Independencia da Guinee Cabo Verde (African Party for Indepence of Guinea-Bissau and Cape Verde) Project Development Objective Public Expenditure Management and Financial Accountability Review Public Expenditure Review Project Implementation Unit Project Operations Manual Protracted Relief and Recovery Operation Project Steering Committee Resettlement Action Plan Système d Information Statistique Agricole (System for Agricultural Statistics) Statement of Expenditures Technical Coordination Unit Terms of Reference United Nations United Nations Development Program West African Economic and Monetary Union West African Rice Development Association World Food Programme World Health Organization Vice President : Country Director : Sector Director: Sector Manager : Task Team Leader : Obiageli Katryn Ezekwesili Habib M. Fetini Inger Andersen Karen Mcconnell Brooks Aniceto Bila iii

4 GUINEA-BISSAU Emergency Food Security Support Project CONTENTS Page EMERGENCY OPERATION PROJECT DATA SHEET... v A. Introduction... 1 B. Country Context, Recovery Strategy and Rationale for Emergency Project... 1 C. Bank and EC Response: The Project... 6 D. Appraisal of Project Activities E. Implementation Arrangements and Financing Plan F. Project Risks and Mitigation Measures G. Terms and Conditions Annexes Annex 1: Description of Project Components Annex 2: Results Framework Annex 3: Summary of Estimated Project Cost Annex 4: Financial Management and Disbursement Arrangements Annex 5: Procurement Arrangements Annex 6: Implementation and Monitoring Arrangements Annex 7: Project Preparation and Appraisal Team Members Annex 8: Country at a Glance Annex 9: Map iv

5 EMERGENCY OPERATION PROJECT DATA SHEET Guinea-Bissau Emergency Food Security Support Project Africa Region Date: February 22, 2010 Country Director: Habib M. Fetini Sector Manager: Karen Mcconnell Brooks Lending instrument: Emergency Recovery Loan Team Leader: Aniceto Bila Sectors: Agriculture, social protection, and feeder roads Themes: Global food crisis response, rural services and infrastructure, other social services and risk management Environmental Screening Category: B Type of Operation: New Operation [X] Additional Financing [] Existing Financing (restructuring) [ ] Financing type: Loan [ ] Credit [ ] IDA Grant [ ] Other [X] Project ID(s): P Total Amount: EUR2.87 million Proposed terms: Grant (EUFRF) Expected effectiveness date: March 11, 2010 Borrower/Recipient: Component 1:World Food Program (WFP) Components 2 and 3: Republic of Guinea- Bissau Development Objective: Expected implementation period: 18 months Expected/revised closing date: August 31, 2011 Responsible agency: Component 1:World Food Program (WFP) Components 2 and 3: Ministry of Agriculture and Rural Development (MoARD) The development objective of the Project is to improve access to food for the most vulnerable population of the Member Country, including children, and to increase smallholder rice production in Selected Areas. The project design of this operation is similar to the ongoing Emergency Food Security Support Project (EFSSP) funded under the Food Crisis Price Response Trust Fund (FPCR). Since this operation will use different sources of donor funding and will have separate grant agreements with the recipients it is designed as a new operation and use parallel financing to the existing FPCR. Similar to the FPCR-funded operation, the proposed parallel financing would help finance short and medium-term activities to mitigate the impact of high international food and fuel prices, and the PDO of the FPCR operation ( improve food security ) and the proposed parallel financing ( improved food access ) do not differ in substance, since the PDO outcomes of the FPCR operation and the proposed are the same, and are consistent with the proposed PDO of improved access to food. This v

6 change was made to clarify the emphasis and proportion of the assistance of the proposed EC parallel financing to immediate food assistance, but will also finance activities to address medium term implications of the crisis and complement the activities initiated under the FPCR-funded EFSSP. Short Description: The proposed operation is being undertaken under the European Union Food Crisis Rapid Response Facility Trust Fund (EUFRF), in furtherance of the Global Food Crisis Response Program (GFRP), and is intended to provide parallel financing to the Emergency Food Security Support Project (EFSSP), which received financing through the Food Price Crisis Response Trust Fund, approved by the Board on September 20, The proposed operation would help finance short- and medium-term activities to mitigate the impact of high food prices in Guinea-Bissau as a result of the global food price trends. The EUFRF operation will provide additional resources for ongoing and new activities to the existing World Bank financed EFSSP which has three components: (i) Support to the Most Vulnerable Population, through school feeding and food-for-work programs; (ii) Support for Increasing Food Production, with a particular focus on rice, on the basis of the country s Emergency Plan for the Agricultural Campaign ; and (iii) Project Coordination, Monitoring and Evaluation. Financing Plan (EUR million.) Source Local Foreign Total Borrower Total IBRD/IDA FPCR-EFSSP Euro Equivalent EUFRF -EFSSP Total Estimated disbursements (Bank FY/ EUR million.) Total IBRD/IDA FPCR-(Euro equivalent) EUFRF Does the emergency operation require any exceptions from Bank policies? Have these been approved by Bank management? Component 1 of the Project will be implemented by World Food Program (WFP). WFP will use its own procurement and financial management procedures. The EC has confirmed its agreement to this and these exceptions are permitted under the GRFP, when implementation is undertaken by UN agencies under OP/BP Yes [ X ] No [] Yes [ X ] No [] Are there any critical risks rated substantial or high? Yes [ X] No [ ] What safeguard policies are triggered, if any? Environnemental Assessment (OP/BP 4.01) Natural Habitats (OP/BP 4.04) vi

7 Pest Management (OP/BP 4.09) Involuntary Resettlement (OP/BP 4.12) Significant, non-standard conditions, if any: yes This operation contemplates two grant agreements: i) a grant agreement between the WFP and the Bank for implementation of component 1 of the Project; and ii) a grant agreement between the Bank and the Republic of Guinea-Bissau in connection with the implementation of component 2 and 3 of the Project. Generally, the terms and conditions applicable thereto are as follows: A. Board condition: none. B. Effectiveness conditions: The Government of Guinea-Bissau will have signed a letter of understanding with WFP in form and substance acceptable to the Bank setting forth the scope, modalities, targeting of beneficiaries, and other matters for implementation of component 1 of the Project. C. Disbursement Conditions: Grant agreement between the Guinea-Bissau and the Bank: (a) No disbursement under Component 2 shall be made until the World Bank has received evidence satisfactory to it that: I. The ESMF and the RAP have each been prepared, approved, adopted and publicly disclosed by the Recipient, in form and substance acceptable to the World Bank; II. The Operations Manual has been approved and adopted by the Recipient, in form and substance satisfactory to the World Bank; and III. That at least three (3) regional coordinators with offices at the regional level reporting to the MoARD have been appointed, each having terms of reference, skills, experience and qualifications acceptable to the World Bank. Grant agreement between the WFP and the Bank: (a) For disbursement relating to Sub-component 1.2 (Food-for-Work Program), evidence satisfactory to the World Bank has been provided that the ESMF and the RAP have each been prepared, approved, adopted and publicly disclosed by the Recipient, in form and substance acceptable to the World Bank; and (b) Written confirmation from the Recipient that the RAP is in form and substance acceptable to it. D. Legal Covenants: The Republic of Guinea-Bissau will submit to the Bank, by no later than March 31, 2010, a strategy and time bound action plan for, communications to stakeholders and enhancement of public awareness regarding the objectives of and activities under the vii

8 Project. The grant agreement between the WFP and the Bank will include standard provisions, except that (as under the FPCR-funded EFSSP), (i) the procurement and anti-corruption policies and procedures of the WFP will be applied for this project in lieu of the standard Bank procedures and guidelines; and (ii) financial management for Component 1 of the Project will be undertaken in accordance with the Financial Management Framework Agreement (FMFA), dated March 10, 2006, between the Bank and the UN. viii

9 GUINEA-BISSAU Emergency Food Security Support Project EC Parallel Financing A. Introduction 1. This Emergency Project Paper (EPP) proposes parallel financing 1 to the ongoing World Bank financed Guinea-Bissau Emergency Food Security Support Project (EFSSP) in the amount of 2.87 million to be financed from the European Union Food Crisis Rapid Response Facility Trust Fund (EUFRF) under the Global Food Crisis Response Program (GFCRP). The proposed project is intended to provide additional resources to scale up and complement the existing FPCR-funded EFSSP. The Project would also finance activities related to communication, visibility, project management, and monitoring and evaluation. 2. With the contribution from the European Commission (EC), the total grant financing available for the EFSSP will be equivalent to 6.23 million, of which 3.36 million is provided by the World Bank through the Global Food Price Crisis Response Trust Fund (FPCR) and 2.87 million is provided by the EC through the EUFRF. The World Bank financed operation was approved by the Board in September 2008 and is being implemented by the World Food Programme (WFP) and by the Ministry of Agriculture and Rural Development (MoARD). 3. Similarly to the FPCR-funded operation, the proposed parallel financing for the EFSSP would help finance short and medium-term activities to mitigate the impact of high international food and fuel prices. It will be used to scale up some activities and introduce new ones related to the existing three components of the FPCR-funded EFSSP which are: (i) support to improve the food access for the most vulnerable population through school feeding and food-for-work programs; (ii) support the implementation of the country s Emergency Plan for the Agricultural Campaign proposed by the MoARD to increase food production, with a particular focus on rice; and (iii) project coordination, monitoring and evaluation. The FPCR-funded EFSSP is expected to be completed over a period of three years (September 2008 to September 2011). The proposed EUFRF project is expected to cover the period of March 1, 2010 to August 31, 2011 (18 months). B. Country Context, Recovery Strategy and Rationale for Emergency Project B1. Emergency Challenge: Country Context, Recovery Strategy and Rationale for the Proposed Parallel financing 1 The EFSSP was originally funded by the FPCR. This operation complements the EFSSP by providing parallel financing through the EUFRF. 1

10 4. Guinea-Bissau is a fragile state emerging from a post-conflict situation. The country is ranked 173th out of 182 countries on the 2009 UNDP Human Development Index. It is estimated that three fifths of the population live in poverty 2. Poverty is concentrated in rural areas, with a rate of 64 percent compared to 46 percent in urban areas. Since 30 percent of the population (about half a million) live in urban areas (mostly in the capital Bissau) and many are net buyers of food, rising food prices are eroding real incomes and pose risks of increasing poverty and political instability. Similarly, for the rural poor, net food buyers risk falling into deeper poverty unless appropriate measures are taken to help boost their capacity for increased production and productivity. 5. The country has been marked by deep political instability since independence in João Bernardo Vieira, who seized power in 1980, ruled the country for almost 20 years until he was ousted after the conflict of Over the past eight years, three elections have taken place - two legislative elections in 2004 and 2008, and a presidential election in 2005, where Vieira returned as the elected President. In November 2008, legislative elections resulted in the African Party for Independence of Guinea-Bissau and Cape Verde (PAIGC) earning a strong majority in the National Assembly. Shortly after such elections, an attempt to kill the President in his residence failed. In the night of March 1, 2009, both the Chief of Staff of the Army and the President of the Republic were killed in short order. The country remained calm and the Speaker of the National Assembly was sworn in as Interim President on March 3, 2009 as per the National Constitution. Presidential elections were held on June 28, The Presidential run-off was held in July 2009 and Mr. Malam Bacai Sanhá of the PAIGC was elected President. 6. Economic growth has been anemic since the end of the civil war in Real GDP per capita in 2007 was still about one sixth below 1999 levels. Average Total GDP growth over stood at only about 1 percent per year, and showed high variability, with short periods of recovery followed by sharp drops (-7 percent in 2002). Growth appears to have stabilized over the last four years, with an average real GDP growth rate of around 2 ½ percent. Progress towards macro-economic stabilization has been uneven since the war, complicated by a difficult domestic political context, and more recently, external shocks. Since 1997, Guinea Bissau has been part of the regional West African Economic and Monetary Union. A common currency and a peg to the Euro have delivered monetary and exchange rate stability over the last decade. 7. Attempts at stabilization in the early years of the decade faltered in the wake of political disturbances and weaknesses in fiscal management. Since early 2007, however, successive governments have reaffirmed the importance of bringing the budget under control to foster stability and improve the functioning of the state. Efforts have been made to mobilize revenues, seek additional donor assistance, and control spending, along with structural reforms in public financial management, notably expenditure control, cash management, revenue collection, and the administrative capacity in the Ministry of Finance. However, the macroeconomic situation remains difficult, with a 2 World Bank (AFTP4): Integrated Poverty and Social Assessment, (IPSA) Vol. II, Conflict, Livelihoods and Poverty in Guinea-Bissau; May

11 primary fiscal deficit (-0.6 percent of GDP in 2008), a high external debt (333 percent of GDP in 2008) and internal debt burden (including arrears on civil servants salaries payments accumulated since the conflict), and low GDP growth (2.7 percent in 2007). In addition, the recent surge in world food and fuel prices is putting pressure on the already tight fiscal situation. 8. The economy is predominantly agricultural, with cashews accounting for approximately 98 percent of export revenues and 17 percent of government revenues. Other export cash crops include peanuts and coconuts. Food crops are cultivated largely for subsistence purposes and comprise rice (the country s main staple), sorghum, millet, maize and cassava. Rice is grown both in swampy coastal areas (mangrove rice) and in drier savannah areas (upland and lowland rice). Subsistence food crop production accounts for about 46 percent of the country s GDP and employs over 80 percent of the local workforce. 9. Guinea-Bissau has good agro-ecological conditions but weak capacity. Despite fertile soil and good rainfall, Guinea-Bissau is handicapped by weak institutional capacity, poor agricultural practices, inadequate and irregular input supply (i.e., seed, fertilizer, pesticides and credit), lack of small farm equipment - especially for cultivation and post-harvest operations, weak agricultural research and extension support and lack of a well-defined rice policy. These constraints, combined with poor infrastructure and severely limited integration with markets, undermine the country s capacity to attain food security. 10. Food represents more than a third of total imports. Rice constitutes about 50 percent of food imports for Guinea-Bissau. Rice, the main staple food, also accounts for 37 percent of the value of food consumption and about 40 percent of daily calorific intake of the average household. According to the International Rice Research Institute (IRRI), Guinea Bissau s rice consumption per person per year is estimated at 87.3 kg in With a population currently estimated at 1.6 million and, using current rice consumption rates per person per year, the country requires approximately 140,000 tons of rice annually to reach national rice self sufficiency. The national rice production in 2007/08 was estimated to be 85,000 tons of clean rice, implying that domestic rice production in 2007/08 accounted for only about 60 percent of national rice consumption. The increasing and large rice deficit is generally met through imports and food aid. Rice production, however, can be considerably increased by following both extensive and intensive approaches. When current production is measured against national requirements, this suggests Guinea-Bissau requires an average of 55,000 tons of additional rice production annually to become self-sufficient. With the price of rice almost doubling in international markets between 2007 and 2008, import costs have increased significantly and made the country extremely susceptible to the consequences of high food price inflation. Furthermore, the country faces weather-related shocks such as erratic rains, which have serious implications for food production, particularly rice. Also, recent political events and international financial crisis have affected the cashew 3

12 nut price which has serious implications on farmer s income and their ability to purchase food. 11. Drop in cashew nut prices is likely to increase the number of people vulnerable to food. Recent political instability and international financial crisis appear to have negatively affected farm gate prices of cashew nuts in 2009 and weaken the ability of rural people to buy food. Producer prices of cashew nuts dropped from 300 CFAF in 2008 to 186 CFAF in Factors of influence might include the tragic murder, on March 1, 2009 of the Army Chief of Staff, and only hours later, the assassination of the President of Guinea Bissau. These political events coincided with the beginning of the 2009 cashew nuts marketing season. Subsequently, many foreign marketing firms did not get involved in business in Guinea-Bissau during this year, for security reasons. In addition, the international financial crisis resulted in lower availability of credit from commercial banks to local traders. These two factors combined are considered to have contributed to a reduction in demand for cashew nuts, and, hence, a negative impact on prices and on farmers income. 12. In the agricultural season more land was rehabilitated and brought into cultivation in response to the Government s Emergency Plan, but rains have been irregular. The Ministry of Agriculture will undertake crop assessment after the harvesting (February 2010) to determine the extent of the crop failure as a result of the irregular rains observed throughout the country during this season. Preliminary reports indicate serious damages to crops particularly rice due to erratic rains. Given that 62 percent of the population in Guinea-Bissau is below poverty line, the drastic drop in cashew nut prices, and the probability of poor harvesting as a result of crop failure due to irregular rains, it is likely to increase the number of people vulnerable to food, unless appropriate measures are taken to provide immediate food assistance and boost their capacity for food production. B2. Government Response to the Crisis 13. The Government prepared an Emergency Plan in June 2008 aimed at ensuring coordinated assistance to the country during the crisis and to build the framework for partners to channel assistance. The plan was prepared with support from the UN agencies especially the Food and Agriculture Organization (FAO) and the World Food Programme (WFP), and covers two agricultural seasons ( ). The main objective of the government is to re-launching food production through provision of seeds, fertilizers and agricultural tools. During the last agricultural season it is reported that extensive land was brought under cultivation as a result of government and donor s support. 14. In addition, since March 2008, all rice imports are exempted from import taxes 3 and customs. These are meant to be temporary measures aimed at mitigating the impact 3 Rice imports pay only WAEMU-related taxes (at a rate of about 2.5 percent). 4

13 of the food price increases until an agricultural supply response (particularly for rice) takes place. As indicated above the area planted with rice in 2009 increased and it is expected that this increase in area cultivated for rice will increase production. B3. Development Partners Strategies and Programs 15. The West African Development Bank (BOAD) and the European Commission provided recently more resources to help Guinea-Bissau mitigate the impact of food crisis. BOAD provided equivalent to US$6.0 million to support activities related to high international food and fuel prices. These resources will be used to increase food production in three regions in the Country namely Tombali, Biombo and Cacheu. The EC provided 3.0 million through the FAO from the European Union Food Crisis Rapid Response Facility under the GFRP to support activities related to increasing food production. 16. Other donors with existing or proposed interventions of relevance include the FAO with a special Program on Food Security, including activities for the distribution of seeds for food crops (rice, coconut), tools for transformation of cashew nuts in 120 villages (cutting, nut extraction, conservation, diversification of agriculture in close collaboration with Italy). An FAO-supported project (in close collaboration with Spain) on the development of peri-urban agriculture is mostly targeting youth and women and small livestock production. 17. The African Development Bank has set up a Project for the Rehabilitation of the Agricultural and Rural Sector (covering 5 regions in the West and the North of the country and planned to be implemented until 2010), covering basically rice production, horticulture production, small livestock, together with cross-cutting activities like trade and marketing, rural mud roads ( pistes rurales ) and micro-finance institutions. 18. The International Fund for Agricultural Development (IFAD) is providing complementary support just like EFSSP in the amount of US$4 million and this operation covers only two regions in the South of the country. 19. The EC provided substantial support to the System for Agricultural Statistics (SISA, Système d Information Statistique Agricole) in the period of The WFP Protracted Relief and Recovery Operation (PRRO), with a total budget of US$21 million, was approved in December 2008 for an initial period of two years. PRRO is scheduled to close in December 2010, but due to the continued need for food assistance to Guinea-Bissau, the project is likely to be extended for another year, until December 31, During the period of , it is anticipated that this program will purchase about 17,268 metric tons of food and will benefit about 246, ,400 5

14 beneficiaries. About 85 percent of the beneficiaries will be under school feeding programs and food-for-work programs. The main elements of the program are: (i) the school feeding program (approximately 156,000 beneficiaries in year 2009 and 171,400 beneficiaries projected for 2010); and (ii) the food-for-work program (approximately 90,000 beneficiaries in each of the two year program). Funding is not yet fully secured for 2010 but the probability is very high that the proposed funding will be made available to the program. C. Bank and EC Response: The Project C1. The Bank s strategy for emergency support is aligned with the Government s strategic approach 21. The Bank approved in September 2008, the first EFSSP in the amount of US$5 million ( 3.36 million equivalent), financed out of the Food Price Crisis Response Trust Fund under the Global Food Crisis Response Program, and aimed at helping Guinea- Bissau respond to the international food crisis. The project focuses on short and medium term interventions. The short-term emergency interventions aim at providing immediate access to food for the most vulnerable through school feeding and food-for-work, while at the same time using food-for work operations for the rehabilitation of abandoned rice fields for the upcoming planting season. In the medium-term, interventions are designed to provide farmers with means of production to increase food production (particularly rice). 22. Implementation is progressing well and considerable progress has been made towards achieving the PDO of the project. The project was declared effective in February, 2009 and it is expected to close in September Component 1 is being implemented by WFP and is designed to support the most vulnerable population through: (i) school feeding; and (ii) food-for-work programs to rehabilitate land for rice production. The implementation of school feeding programs started on March 4, 2009 in most schools and the food-for-work program started effectively on April 2, The school feeding program is being implemented in 116 schools in five regions and is providing on average about 13,776 daily meals to students out of the 14,000 planned. Until the end of May 2009 it is estimated that this program provided over 730,128 meals totaling metric tons of food of which 77 metric tons was corn-soya-blend (CSB), 7.7 metric tons of vegetable oil and 6.16 metric tons of sugar. It is expected by the end of the program that the projected 509 metric tons of food will be used. Related to the foodfor-work program, a total of 1,620 ha of land for rice production have been rehabilitated (540 ha is mangrove and 1,080 ha is lowland) and are now under cultivation. The rehabilitation of land is being implemented in six regions covering a total of 82 communities. Until end of May 2009 the program has provided jobs to at least 2,000 people corresponding to at least 50,000 work-days and distributed 151 metric tons of cereals. It is expected that a total of 980 metric tons of food will be distributed under this program. All three PDO indicators of the on-going GFRP project for the first year are, therefore, on track: (i) the number of student receiving one meal a day is at 98 percent of the target; (ii) the number of work-days (rations distributed to rural producers) in foodfor-work activities is also on target; (iii) the quantity of rice produced in the new rehabilitated areas will be measured only after harvesting. But more than 1600 ha have 6

15 been rehabilitated and planted. This is likely to result in more than 3,000 tons of additional rice to consumers. 23. Despite considerable progress in implementation of this project as described above, the overall implementation progress is rated as Moderately Satisfactory (MS) due to delayed establishment of the Technical Coordination Unit (TCU); delayed preparation of the Operations Manual and the Environmental and Social Management Framework (ESMF) as required for smooth project implementation. There has been a delay in the establishment of the Technical Coordination Unit (TCU) due to non-compliance to Bank Procurement Procedures. The situation has improved and recruitment of qualified consultants for the TCU is underway. By mid-november 2009 the Bank had provided clearances for recruitment of the accountant, procurement assistant, communications officer, monitoring and evaluation specialist, environment and social safeguards specialist, and one regional coordinator. No eligible qualified consultants were found for the remaining positions of: agronomist, two regional coordinators and 6 regional assistants. The MoARD has identified qualified civil servants to serve under these positions and they will be appointed as soon as consultations are completed. For all appointed staff the Government will continue to pay salaries and the project will only pay for operational costs related to project implementation, as it is the case with the national project coordinator. 24. As the consequence of the delayed recruitment, there has been a delay in the preparation of the Operations Manual and the ESMF, and hiring of NGOs to organize the communities, and, as a consequence, the provision of matching grants (under Component 2) to support small-scale infrastructure, production, processing and marketing subprojects has not yet started. But the MoARD, responsible for the implementation of this component through the Technical Coordination Unit (TCU), purchased 27 tons of rice mangrove seeds in April 2009 and distributed to 500 smallholder farmers and was planted in 540 ha. These seeds were to complement 45 tons for upland rice provided by WFP. 25. The operations manual, which was completed only in mid-november 2009 and is currently being tested, and is expected to be adopted before end of February The time-frame for the preparation of the environment and social management framework will be extended for another 6 months. The preparation of both the ESMF and the abbreviated Resettlements Action Plan (RAP) has finally been initiated in mid- November, and is expected to be completed by end of February Financial Management (FM) of the FPCR operation is rated MS. The fiduciary arrangements (procurement and financial management) have been outsourced to the Project Implementation Unit (PIU) of the on-going Coastal and Biodiversity Management Project (CBMP). FM was rated MS mainly due to inadequate budgeting in June 2009 mission. The budget initially presented for 2009 was too ambitious and required revision of the total grant and this was not related to the annual plan approved by the Bank. The June 2009 mission recommended that the project prepare the total budget for the duration of the project and introduce it in the accounting system. This has been executed, and the FM will be rated Satisfactory in the next Implementation Status Report (ISR). 27. Procurement of the FPCR operation is also rated MS. The MS rating of procurement in the last ISR was due to two factors: (i) misinterpretation of provision 7

16 1.11(d) of the Consultants Guidelines, related to the hiring conditions of civil servants, which was the main reason for delayed establishment of the TCU; and (ii) inadequate filing. The Bank Procurement Specialist has been working with the PIU of the CMBP that is supporting the EFSSP and these issues have been resolved. C2. The Proposed EC Parallel Financing 28. The Proposed EC parallel financing (EUFRF) will provide additional resources in the amount of 2.87 million from the European Union Food Crisis Rapid Response Trust Fund to complement and scale up some activities of the ongoing FPCR-EFSSP and introduce additional ones. 29. The project components of the proposed operation will be the same as those of the FPCR-EFFSP: (i) support to the most vulnerable population; (ii) support for increasing food production; and (iii) project coordination monitoring and evaluation. However, there are two main differences: (a) The proposed EUFRF-funded operation will be implemented over 18 months; i.e. March 1, 2010 to August 31, 2011; as opposed to three years for the FPCR-funded EFSSP; and (b) the proposed food-for-work program, instead of rehabilitation of new land for rice plantation will be used for the rehabilitation of rural feeder roads in the project area to improve access to production areas. C3. Project Development Objective (PDO) of the proposed Project 30. The proposed PDO of this operation is to improve access to food for the most vulnerable population of the Member Country, including children, and to increase smallholder rice production in the Selected Areas. The Project will also finance activities to address medium term implications of the crisis and complement the activities initiated under the FPCR-funded EFSSP. 31. The Project has four PDO level outcome indicators: (i) pre-school and primary students receiving at least one meal per day; (ii) work days (rations distributed) to rural producers in food-for-work activities; (iii) beneficiaries of food-for-work program, and (iv)rice produced in new rehabilitated areas under the Project. Details are provided in Table 1 below. Table 1. Comparison of the PDO and Key Performance Indicators of the FPCR and EUFRF Operations FPCR PDO Improve food security for the most vulnerable population, including children, and increase smallholder rice production in project areas Proposed EUFRF PDO Improve access to food for the most vulnerable population in the Member Country, including children, and to increase smallholder rice production in selected areas. PDO outcomes Improved access to food for vulnerable groups No change including children Increased rice production No change Key Performance Indicators Number of students receiving one meal a day Core indicator: Pre-school and primary 8

17 Number of days of work-days (rations distributed to rural producers) in food-forwork activities Quantity of rice produced in the new rehabilitated areas under the Project (tons) students receiving at least one meal a day No Change Core indicator: Number of beneficiaries of food for work program Rice produced in the new rehabilitated areas under the Project 32. The expected outputs of the proposed Project include: (i) provision of additional meals for 28,000 students for a period of 160 days; (ii) provision of seeds and fertilizers and seed to cover an additional 1,000 ha of cultivated land; and (iii) provide an additional number of 40 small grants to smallholder groups. Under the food-for-work program, the Project will complement the land rehabilitation work initiated under the existing EFSSP and rehabilitate 300 km of rural feeder roads to improve the access to production areas. More details of the expected results are provided in the results framework (Annex 2). C4. Summary of the Project Components 33. The proposed operation has three components: (i) support to the most vulnerable population; (ii) support for increasing food production and (iii) project coordination, monitoring and evaluation. The components of FPCR and EUFRF are similar, and complement each other. The main difference to the FPCR TF-funded EFSSP is that Component 1of the FPCR, focused on rehabilitation of land for rice plantation and the EUFRF proposed operation will focus on the rehabilitation of feeder roads. Therefore, the outcomes will be considerably different in this component. With the contribution from the European Commission (EC), the total grant financing available for the EFSSP will be equivalent to 6.23 million, of which 3.36 million is provided by the World Bank through the Food Price Crisis Response Trust Fund (FPCR) and 2.87 million is provided by the EC through the EUFRF. Details of the resources allocation are provided in Table 2 below, and detailed description of each component is provided in Annex 1. Table 2. Summary of Project Cost by Components and Source of Funds in EUR Source of Fund Percentage of the Total Project components FPCR EUFRF Total Project Project Component 1- Support to the Most Vulnerable Population 1,006,711 2,050,000 3,056, % 1.1 Costs for School Feeding Program 335, ,000 1,035, % 1.2 Food-for-Work Program 671,141 1,350,000 2,021, % Component 2 - Support for Increasing Food Production 2,013, ,000 2,543, % 9

18 2.1 Matching Grants 1,677, ,000 1,877, % 2.2 Provision of Technical Support 335, , , % Component 3 - Project Coordination, Monitoring and Evaluation 346, , , % 3.1 Project Coordination 234, , , % 3.2 Monitoring and Evaluation (M&E) 111, , , % Total Project Cost 3,366,557 2,870,000 6,236, % 34. The proposed activities of the Project to be financed under EC parallel financing are expected to be implemented over a period of 18 months (March 1, 2010 to August 31, 2011) and will focus on six regions in the country: Bafata, Biombo, Bissau, Cacheu, Gabu and Oio. Component 1: Support to the Most Vulnerable Population ( 2.05 million) 35. This component will be implemented by the WFP and is designed to support the most vulnerable population especially children, through: (i) a school feeding program; and (ii) a food-for-work program to rehabilitate feeder roads. The parallel financing will increase the funding to this component resulting in an estimated increase of the school feeding program from 14,000 students to 28,000 students. The food-for-work program will rehabilitate 300 km of feeder roads and provide food for 18,900 beneficiaries. Over the next 18 months, it is expected that this component will purchase about 1,477 metric tons of food commodities for both programs (617 metric tons for school feeding program and 870 metric tons for food-for-work program). Component 2: Support for Increasing Food Production ( 0.53 million) 36. This component will be implemented by the MoARD through a Technical Coordination Unit (TCU) covering both the FPCR and EUFRF operations. It is designed: (i) to promote food production through distribution of seeds and fertilizers; (ii) to provide matching grants to smallholder farmer groups aimed at financing small-scale agricultural infrastructure, production, processing and marketing sub-projects; and (iii) to strengthen the technical capacity of the MoARD to assist smallholders and their organizations. While the Project would support diversification and production of all food crops, the main focus of intervention will be to increase rice production. Component 3: Project Coordination, Monitoring and Evaluation ( 0.29 million) 37. The objective of this component is to enhance MoARD s capacity to coordinate project implementation, visibility, monitoring and evaluation and resources management in accordance with the project objectives and procedures. The preparation of the Operation Manual, Communication Strategy, the ESMF, and the RAP will also be under this component. 10

19 38. Since both operations (FPCR and EUFRF) have the same implementation arrangements and their implementation periods overlap, the vehicles and most of the equipment needed for the proposed Project will have been already purchased under the FPCR operation, and no new vehicles will be purchased under the EUFRF. However, the costs for additional operations and for the full maintenance will be covered by the EUFRF. The EUFRF-funded project will also support the salaries of eligible consultants for project implementation at the TCU for 12 months. The level of salaries was understated relative to market prices during the preparation of the FPCR-funded EFSSP, and some positions such as safeguard and communications specialists were designed only as short-term, but due to the need and the additional work load with the new Project coming on board, these positions have been now changed to full-time positions. C5. Eligibility for Processing under OP/BP The proposed project was prepared in close collaboration with authorities and the WFP and is designed to improve food access by supporting the most vulnerable population and to increase food production, with a particular focus on rice. The Project will complement and scale up activities initiated by the FPCR and will provide emergency support to the most vulnerable population through school feeding and foodfor-work programs as well as critical support to increase food production, with a particular focus on rice, in the medium-term. The assistance provided under this Project is consistent with OP/BP 8.00 and with the Bank s mandate. The success of the activities financed under the Project in the time frame necessary to have an impact depends on the use of flexible and accelerated procedures allowed under OP/BP 8.00, particularly with respect to project preparation, safeguards compliance, procurement, and financial management and disbursement arrangements. C6. Consistency with Country Strategy 40. A new Interim Strategy Note (ISN) was approved in May 2009 for a period of 24 months, of which the objective is to carry out a program as the country works towards compliance with the Heavily Indebted Poor Country (HIPC) Completion Point. The strategy supports the Government s program passed by the National Assembly on March 18 th, The ISN for FY10-11 is based on two pillars: (i) Strengthening Economic Management and Laying the Foundations for Improvement in the Productive Ssectors; and (ii) Increased Access to Basic Services. Capacity Development for efficient governance and project implementation is a cross-cutting topic. The proposed food crisis response operation reflects the Government s and the Bank s continued focus on shortterm economic stabilization and revitalization through improvements in agricultural productivity, particularly for food crops. It is also considered an entry point for an envisaged more substantial World Bank engagement in the Guinea-Bissau agricultural sector under the upcoming CAS (FY11). 11

20 C7. Expected Outcomes 42. The expected results to be achieved at the end of the Project are: (a) to provide one meal a day for 28,000 students in 232 schools for a period of one year (160 days) under the school feeding program; (b) to make available food for 18,900 people and generate 162,000 days equivalent jobs and rehabilitate 300 kilometers of feeder roads within the six regions, under the food for work program; and (c) to produce 1,000 tons of additional rice, as a result of distribution and seeds and fertilizers to about 2,000 smallholder farmers to cover 1,000 ha. Project outcome and output indicators, as well as M&E arrangements, can be found in the Results Framework in Annex The combined results of both operations are: (i) provision of one meal a day for 42,000 students over 230 days; (ii) make available food for 38,900 beneficiaries and generate a total of 363,000 work days, under the food for work program; and (iii) production of 8,500 tons of additional rice. D. Appraisal of Project Activities D1. Technical 44. Staple food production (especially of rice) can be scaled up through both area expansion and productivity increases. Average rice yields in Guinea-Bissau are 0.9 ton per hectare for rain fed and tons per hectare for lowland and mangrove rice cultivation. In the case of rain fed rice, the yields are considerably below the agronomic potential of 2.5 tons per hectare for traditional rain fed varieties. Rice yields per hectare could be increased by distributing modern varieties, such as NERICA, which can readily give 2.5 tons per hectare with low inputs and 5 tons per hectare with a minimum increase in fertilizer use. NERICA has other attractive features in that it is short maturing, allowing farmers to grow extra crops and can be saved and replanted, without having to purchase seeds annually. There are also local rice varieties that are high yielding and preferred by the local consumers (e.g. Cablock, Thom and Atanha varieties for mangrove rice and Banimalo and Sabe12 varieties for lowland rice). 45. Concerted effort is needed to distribute and provide good agronomic advice on modern varieties of rice and on appropriate fertilizer application, make available complementary agricultural implements to small-scale poor farmers to increase the productivity of key food crops and rehabilitate degraded land and support small scale water structures. Depending on the specific local context, technical support and advice to farmers will be provided by using either farmer field schools through farmer-based organizations to deliver extension services or local NGOs, with experience on organizing and training farmers. Practical agronomic expertise may also be hired from experienced Consultative for International Agriculture Research (CGIAR) centers, such as the West African Rice Development Association or Africa Rice Center (WARDA) and International Institute for Tropical Agriculture (IITA), to work with national agricultural institutions to disseminate good practices in the production of these staples, on demand of local communities. Activities to increase rice production are already under way, and the Project will make a modest contribution to expand their scope. 12

21 D2. Economic and Financial Aspects 46. Direct benefits will accrue from incremental yields per hectare as a result of dissemination of new knowledge, provision of improved seeds and fertilizer application and as a result of improved access to production areas. Indirect benefits would come from increased employment of rural labor as well as increased employment of agricultural technicians to assist with project implementation. Other indirect benefits may involve downstream and upstream employment triggered by project works and related to the crop value chain. The emergency nature of this response precludes quantitative financial and economic analysis. However, the low current rice yields and high rice prices indicate potential for high rates of return from rice production. As agreed under the on-going operation, the Project will support baseline date collection as part of the M&E system to enable calculation of economic and financial returns at project completion. D3. Fiduciary Component The financial management for Component 1 of the Project will be implemented in accordance with the Financial Management Framework Agreement (FMFA), dated March 10, 2006, between the Bank and the UN. The WFP will prepare its annual budget forecast for Bank review and approval. WFP will handle all the financial management aspects using its own procedures set out in its WFP Financial Regulations. It will maintain a separate account for recording the transactions relating to this project. As per the FMFA, the Bank s audit requirements are met through the normal biennial audit to the WFP. Accordingly, separate audited financial statements and audit reports from WFP for this project are not required. This has been fully disclosed to the EC and it has confirmed its acceptance to the use of the FMFA for this operation. 48. The procurement arrangements for Component 1 will follow WFP procurement procedures. The Bank Procurement and Consultant Guidelines will not be followed and the Bank will not exercise its regular procurement oversight through post and prior review. It is worth noting that the Bank will conduct intensified supervision of the outcomes and results of the Project. In addition, the grant agreement between the Bank and WFP will contain alternative provision to the Bank standard clauses regarding audit, fraud and corruption consistent with the provisions in similar legal documents between the Bank and WFP. Components 2 and Given the weak institutional capacity of the MoARD, the Project will outsource the project-specific financial management and procurement arrangements to the ongoing CBMP PIU. The latter currently operates financial management (FM), procurement and disbursement procedures that are acceptable to the Bank. 50. The financial management and disbursement arrangements for this project will follow the arrangements agreed for the ongoing CBMP. These include: budgeting; accounting; internal control; flow of funds; financial reporting; and external audit. The 13

22 PIU has succeeded in recording, processing, preparing and submitting quarterly interim un-audited financial reports. It has also succeeded in timely submission of audit reports. During the mid-term review, some financial management issues (an unacceptable interim financial reports, weakness in the monitoring of budget and weakness in the internal control) were raised and an action plan has been proposed to strengthen the financial management system. During the last mission in October 2009, the Bank assessed the quality of the interim financial reports (IFR) and they are acceptable and the internal control has been strengthened. The Bank s FM team will continue to intensify its supervision of the projects in the portfolio, including the proposed project and provide FM implementation support to ensure that established FM procedures are strictly adhered to and, where necessary, strengthened. As of June 2009 the CBMP PIU complied with fiduciary requirements and continued to record transactions properly. Also, it has successfully submitted withdrawal applications in the format required by the Bank. The CBMP PIU fiduciary team will continue to provide support to this project. The TCU also hired an accountant in November 2009 who is being trained to take over the FM function when the CBMP closes. 51. Procurement arrangements. Procurement would be carried out in accordance with the World Bank s "Guidelines: Procurement under IBRD Loans and IDA Credits" dated May 2004, revised October 2006; and "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" dated May 2004, revised October Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants", dated October 15, 2006 shall apply to the project. Similarly to the FM, procurement activities will be handled by the PIU of the CBMP. The procurement activities will follow a specific procurement plan prepared by the Borrower and agreed with the Bank during project preparation. The implementation and the follow up of all procurement activities to ensure timely response will be done in close collaboration with the MoARD s Department of Rural Engineering. A procurement assistant, with adequate qualification and experience, positioned within the Department of Rural Engineering, has been identified and will be hired to facilitate the procurement work with the Procurement Officer in CBMP PIU and will support the transition of procurement functions to the TCU when the CBMP closes in March 2011, after an envisaged extension of one year. D4. Safeguards Policies 52. The activities supported by the Project are expected to have minimal to amenable environmental and social implications. However, because of the likely use of pesticides, and the rehabilitation of 300 km of feeder roads, the Project has been rated as Category B, and four (4) safeguard policies are triggered: Environmental Assessment (OP/BP 4.01), Natural Habitats (OP/BP 4.04), Pest Management (OP/BP 4.09) and Involuntary Resettlement (OP/BP 4.12). As stated in the earlier paragraphs due to the encountered implementation problems of Component 2, there has been a delay in the preparation of the safeguard documents. However, the ESMF is now under preparation and will formulate guidelines and procedures for environmental and social screening, whereas the abbreviated RAP will explain the proper way of handling any potential land tenure and resettlement issues. Since this operation is intended to provide parallel financing to the 14

23 existing EFSSP funded under the FPCR, the same ESMF will be used, and will be supplemented by an abbreviated RAP in connection with the rehabilitation of 300 km of feeder roads. The ESMF will also provide guidelines for both the use and management of pesticides, as well as on the potential disturbance of natural habitats. In addition, the ESMF and abbreviated RAP will discuss adequate institutional arrangements for timely implementation and monitoring of safeguard measures, along with any technical capacity strengthening and awareness raising measures deemed necessary for relevant stakeholders groups. The safeguards policies that are triggered for this project are summarized below: Safeguard Policies Triggered Yes No Environmental Assessment (OP/BP 4.01) X Natural Habitats (OP/BP 4.04) X Forests (OP/BP 4.36) X Pest Management (OP/BP 4.09) X Indigenous Peoples (OP/BP 4.10) X Physical Cultural Property (OP/BP 4.11) X Involuntary Resettlement (OP/BP 4.12) X Safety of Dams (OP/BP 4.37) X Projects on International Waterways (OP/BP 7.50) X Projects in Disputed Areas (OP/BP 7.60) X D5. Lessons from Experience 53. The design of the proposed project takes into account lessons learned from the implementation of the FPCR-funded EFSSP and from the implementation of the Coastal Biodiversity Management Project. The most relevant lessons include: (i) Use of the existing WFP framework for implementation of this project minimized the implementation delays and prevented elite capture. The school feeding and food-for-work programs were very effective in providing access to food for the vulnerable population including children, provision of employment and in bringing new agricultural land into production. (ii) Effective project implementation requires intensive supervision, including functioning and sound monitoring and evaluation system. This is particularly important in Guinea-Bissau, given the weak capacity and limited managerial experience. The project team has budgeted for intensive supervision, with four missions planned per year. D6. Policy Exemptions as already agreed for loans for GFRP 54. As under the FPCR-funded EFSSP, the implementation of Component 1 of the proposed project will be undertaken by WFP in accordance with a separate grant agreement between the WFP and the Bank, which provides, inter alia, that (i) the procurement policies and procedures of the WFP will be applied for this project in lieu of the standard Bank procedures and guidelines based on the Framework document for loans 15

24 for GFRP; and (ii) the financial management for Component 1 of the Project will be undertaken in accordance with the FMFA. This has been fully disclosed to the EC and it has confirmed its acceptance to the use of the WFP procurement procedures and the FMFA for this operation. The recently executed Fiduciary Principles Accord between the Bank and the UN does not apply here, as it has not yet been endorsed by the EC. Internally, this exception to the standard Bank procedures and guidelines is permitted as this project falls under the scope of the GFRP, which allows for UN agencies to use their own policies and procedures in connection to emergency operations under OP/BP E. Implementation Arrangements and Financing Plan E1. Implementation Arrangements 55. The implementation arrangements will be the same as for the FPCR-funded EFSSP: Component 1 of the Project will be implemented by WFP, whereas Components 2 and 3 will be implemented by the MoARD. The Project will be under the general oversight of the Project Steering Committee (PSC), chaired by the Minister of MoARD. The PSC was created in March 2009 and is composed of representatives from the Ministries of Finance, Education, Social Affairs and other relevant government entities. The PSC is responsible for: (i) approving the annual work program and budget; (ii) providing necessary policy guidance to the TCU; (iii) addressing any emerging problems that are likely to affect project implementation; and (iv) providing oversight during the implementation of this project. The representative of EC delegation in Guinea-Bissau will be invited to PSC meeting. 56. The coordination and technical implementation of the Project will be the responsibility of a TCU, reporting to the MoARD, specifically the Department of Rural Engineering. The TCU will include a Project Coordinator, Agricultural Specialist, Communication Specialist, Safeguard Expert, and M&E Expert and other relevant positions to support project implementation. 57. At the regional level, the TCU will include three regional offices, each responsible for two regions. The regional offices will have a maximum of three staff, including a Regional Coordinator, and will collaborate with the Regional Agriculture Offices to facilitate implementation of the Project at the regional level. The Project will finance the salaries of externally hired staff, and limited technical assistance and training, office equipment and vehicles, and operational costs. The Project will also finance the costs of periodic financial audits. 58. Component 1 of the Project will be implemented by WFP pursuant to (i) a grant agreement with the World Bank and (ii) a letter of understanding with the Government of Guinea-Bissau. The WFP will implement the school feeding and the food-for-work programs, in the same manner as its ongoing program (i.e., the PRRO). This will minimize implementation delays and it is the quickest way to respond and improve access to food for the most vulnerable population, i.e. children and unemployed. While the program will improve access to food for the beneficiaries, it is designed to rehabilitate feeder roads, thereby expanding area under rice cultivation. The WFP will report to the Bank and to the MoARD through TCU but will follow its own financial management and procurement procedures. This will be specified in the grant agreement with the WFP and the letter of understanding with the Government of Guinea-Bissau (MoARD). A total of 16

25 seven percent of the funds allocated to this component will be used to cover WFP s administrative costs. 59. Component 2 will be implemented by the MoARD, with support from TCU and NGOs. In consultation with MoARD, the task team explored the possibility of implementing the activities under the Matching Grants Program (Sub-component 2.1) directly by the Government or by FAO. Given the limited and weak capacity of MoARD and given the necessity to respond to the urgent needs of smallholder s farmer groups, it was agreed that the appropriate activities proposed under Sub-component 2.1 would be implemented by the communities/smallholder farmer groups. 60. Component 2 will provide demand-based support, in the form of matching grants to smallholder farmer groups, for small-scale production, processing and marketing subprojects and with the support from TCU and NGOs. The sub-project implementation arrangements include the following steps and elements: (i) Identification, which originates at the beneficiary level, through a facilitated participatory development planning exercise, resulting in an identified sub-project proposal. An NGO will be hired as a service provider to support the formation and capacity building of smallholder farmer groups and associations to identify and prepare sub-projects using participatory planning exercises. The sub-project proposals, after approval by local smallholder committees, are submitted to the Regional Agriculture Office; (ii) Appraisal, the selected service providers (NGOs) will prepare the respective sub-project documentation for submission to the Regional Agriculture Office. All sub-projects are screened for technical, financial, economic, social and environmental feasibility. With the consent of the Regional Agriculture Office Director, the regional project coordinator submits the sub-project document to the TCU; (iii) Evaluation, all sub-project proposals are evaluated by the TCU. This includes verification of all eligibility and feasibility criteria; (iv) Approval, depending on the project cost, and based on criteria described in Annex 1, and the operations manual, the sub-projects will be approved or rejected by the relevant governing body as set out in the operations manual; (v) Implementation, the TCU will be responsible for overall coordination for the implementation of approved sub-projects. The FM and procurement services will be outsourced to CBMP PIU, with in-house capacity in TCU as well. Whenever possible and justifiable, procurement will be done by the beneficiaries or with full involvement of the beneficiaries through the local smallholder committees and the Project will process the payments on their behalf. 61. Component 3 Project coordination, monitoring and evaluation, will be implemented by MoARD. At the specific request of the MoARD, a TCU has been established within the Department of Rural Engineering and will be accountable for the coordination, management and oversight of the Project in order to attain its objectives. E2. Project Cost 62. The cost of the proposed Project is expected to be 2.87 million, of which: 2.05 million for Component 1; 0.53 million for Component 2; and 0.29 million for Component 3. As the result of this the total Project cost will be 6.23 million equivalent. The detailed project costs are provided in Annex 3. 17

26 Table 3. Summary of the EUFRF-funded Project Cost by Expenditure Category in EUR EUFRFfunded Project Total Percentage of the Total EUFRF Project Components FY10 FY11 Component 1- Support to the Most Vulnerable Population 1,536, ,697 2,050,000 71% (1) Direct Operation Costs for School Feeding Program 405, , ,275 23% (2) Direct Operation Costs for Food-For-Work Program 1,030, ,613 1,266,613 44% (3) Indirect Support Costs to WFP 100,506 33, ,112 5% Component 2 - Support for Increasing Food Production 170, , ,000 18% Goods, works, consultants services, Sub-grants under Sub-component , ,000 7% Goods, consulting under Sub-component , , ,000 11% Component 3 - Project Coordination, M&E 200,150 89, ,000 10% Goods, consultant s services 160,000 20, ,000 6% Operation Costs (Including RAP) 40,150 69, ,000 4% Total Project Cost 1,906, ,547 2,870, % E3. Financial Management Arrangements 63. Component 1. The WFP will handle all the financial management aspects related to implementation of component 1, and will use its own procedures set out in its WFP Financial Regulations and will maintain a separate account for recording the transactions relating to this project. As per the FMFA, the Bank s audit requirements are met through the normal biennial audit of the WFP. Accordingly, separate audited financial statements and audit reports from WFP for this project are not required. This has been fully disclosed to the EC and it has confirmed its acceptance to the use of the FMFA for this operation. It is worth noting that upon effectiveness of the grant agreement between the Bank and the WFP, the funds required for the implementation of component 1 of the Project will be advanced to WFP (as recipient) on the basis of annual forecasts to be submitted by WFP. Disbursements shall be made into a WFP bank account that may be pooled with WFP resources. Replenishments of the advance for the rest of the period shall be based on such annual forecasts and Interim Financial Reports (IFRs). 64. Components 2 and 3. The Project will use the existing procurement and FM arrangements of the CBMP and its fiduciary responsibility will be borne by the CBMP PIU. However, the TCU will also hire a Procurement Assistant and an Accountant, which could eventually help transfer the fiduciary responsibility to MoARD once the CBMP project closes (expected to close in March 2010). The Project will finance the salaries of externally hired staff, limited technical assistance and training, office equipment and 18

27 vehicles, project M&E costs, and operational costs, including incremental operational costs of the CBMP PIU. The disbursements will be made through a Designated Account. While the account will be maintained under the MoARD, payments will be issued by the CBMP PIU. E4. Procurement Implementation and Arrangements 65. Component 1 will be managed by WFP, while components 2 and 3 will be managed by MoARD through TCU, with the support of the PIU of the CBMP. 66. Similarly to financial management, procurement activities for Components 2 and 3 will be handled by the CBMP PIU. The procurement activities will follow the specific procurement plan prepared by the Recipient and agreed with the Bank during the preparation mission in June The implementation and the follow up of all procurement activities to ensure timely response will be done in close collaboration with the MoARD/Department of Rural Engineering. To facilitate transition when the CBMP closes in March 2010 a qualified procurement assistant has been identified and will be hired by February E5. Arrangements for Bank Supervision, Monitoring and Evaluation 67. As required under the OP/BP 8.00, the shift from ex-ante risk mitigation and control measures requires task team to intensify supervision efforts through frequent missions and ex-post reviews. The Project will have a minimum of four supervision missions per year with participation of procurement, financial management, and other specialists as required. The Project has available 240,000 for preparation and supervision. 68. The duration of the EUFRF-funded activities of the Project will be 18 months. The mid-term review of the full project will be carried out 9 months after project effectiveness of the proposed EC-parallel financing to EFSSP. 69. Impact assessment surveys will be undertaken and they are aimed at collecting information about project s contribution to the enhancement of participant smallholder farmers agricultural production and income as well as appraising how this is distributed by gender, social groups and geographical area. F. Project Risks and Mitigation Measures 70. The project risks have been identified and mitigation measures have been put in place.. Despite the limited scope of the activities proposed and the use of existing or tested implementation mechanisms in the country, the governance, fiduciary and capacity environment of Guinea-Bissau justifies the rating of the overall risk for this operation as substantial. 19

28 71. The specific country, sector and project operational risks that could jeopardize the success of the program and individual components along with mitigating measures are summarized in the following table. Table 4. Summary of Project Risks and Mitigation Measures Risk factors Description of risk I. Country- and Sector-Level Risks Macroeconomic to exogenous shocks, including climate Guinea-Bissau is highly vulnerable framework shocks and commodity price volatility (notably food and oil price increases). The country is facing significant challenges in maintaining macroeconomic stability. In particular, the difficult fiscal situation, with a large external debt overhang and internal arrears, pose challenges to the financing of the PRSP and increase the country s vulnerability to external shocks. Moreover, the government may be unable to implement its cash flow management plan or the envisioned donor support may not materialize Rating of risk Mitigation measures H In January 2008, the Board of the World Bank approved an exceptional increase in the ceiling for HIPC interim debt relief from 30% to 50%, which helped to reduce the debt service to be paid by the country. An IMF Medium-Term Macroeconomic Program aiming at consolidating gains achieved to date under EPCA (Emergency Post-Conflict Assistance Program) and launch the basis for a more consolidated economic growth and poverty reduction is currently under preparation (as of Feb. 2010). It is hoped that under this Program and with donor support Guinea-Bissau will be able to achieve the Heavily Indebted Poor Country (HIPC) Completion Point within the next 12 months. The Bank has committed budget support in the total amount of US$ 12million during the ISN period, which will be supplemented by resources made available under the IDA Crisis Window. HIPC and MDRI debt relief will significantly reduce the external debt burden and ease the fiscal situation. The proposed Project aims at mitigating the short term impact of food price increases on the vulnerable population and the government budget, and at supporting growth in agricultural production to ensure an accelerated supply response in support of sustained improvement in food security. Rating of residu al risk H 20

29 Risk factors Description of risk Political Risk The country remains instable and it is not yet self-evident that power struggles are fought out in a non-violent way, i.e. in the National Assembly, the courtrooms, the media, etc. - a situation which was confirmed by the events of March 1, 2009, when both the Army Chief of Staff and the President of the Republic were killed in short order. However, in this precarious situation, the population remained calm, and formal constitutional procedures were followed. The new President, Mr. Malam Bacai Sanhá (PAIGC), was determined in the second round of Presidential elections in July 20(first round was held on June, 28). All recent elections were held under peaceful circumstances and considered free and fair by external observers. Many very important topics are politicized, for example the outstanding public sector salaries, electricity provision, certain reform projects, which is not favorable to rational matter-of-fact discussions on realistic solutions. Country For Guinea-Bissau as a whole, risks governance of poor governance in implementation remain high and anti-corruption instruments in their infancy. Weak national institutions and increased narco trafficking jeopardize rule of law and security. Limited government leadership for and adherence to reform programs in the face of fiscal difficulties, political instability (but improving) and constant fluctuation on both senior government and administration level affect program implementation. Lack of decentralization framework, and weak institutions, capacity and governance at local level also pose constraints on project implementation. In particular, the lack of trained civil servants makes project implementation in Guinea-Bissau risky. Rating of risk Mitigation measures H Intensive strategic communication including systematic stakeholder and political economy analysis is the best mitigation measures, external actors can take in such a situation. The World Bank will increase efforts in this respect, but the residual risk remains substantial. Other donors are working with the Government to elaborate a realistic budget and prepare new development strategies as the country is becoming stable. H The Bank ensures adequate financing and technical assistance to stabilize and strengthen key public institutions critical to rule of law and basic services. Operations funded in Guinea-Bissau contain well defined targeted activities, and will utilize already existing implementation mechanisms that contain financial management and procurement frameworks which have been tested and are under constant monitoring. The 2009 ISN introduced capacity development as a crosscutting task for every project intervention, and with specific activities to improve governance on the country-level. This program contains well defined targeted activities, provision of technical support, will utilize already existing implementation mechanisms that contain FM and procurement frameworks which have been tested and are under constant monitoring, and when possible, existing delivery mechanisms (e.g., WFP). Rating of residu al risk S S 21

30 Risk factors Systemic corruption Procurement Risk Description of risk Weak institutions and difficult economic environment highly susceptible to corruption and political interference. Political interference at the central and regional level. Lack of control from DGCP (Direcção General dos Concursos Publicos) due to insufficient means. The current procurement code is not updated in line with WAEMU's directives; deficient institutions for regulation and control; weak procurement capacity throughout all institutions at the central level. Rating of risk Mitigation measures H Key FM oversight elements of the Project are entrusted to the Government system. Capacity for external audit is enhanced by the recruitment of the external private sector audit firm to carry out the external audit. The project fiduciary aspects will be implemented through the CBMP PIU which is familiar with the implementation of CDD operations and internal and external auditors will be recruited. An administrative and accounting manual of procedures has been developed to provide all details on accounting and financial procedures Strategic reflections are underway after the PEMFAR exercise at the aim of reforming the procurement function in the country. This project will benefit from such reforms once established. H Currently, the Bank supports only limited activities with respect to the mitigation of procurement risks outside the context of individual projects. At the project level, the proposed Project will produce a detailed implementation manual and conduct technical audits on an annual basis for the implementation of the micro-projects Technical audits will be conducted on an annual basis for the implementation of the microprojects. In addition, the financial audit will include a requirement for the auditors to give their opinion on the procurement performance Provide support at the project level on measures intended to build capacity within the Procurement Control Body at the central level (the DGCP) to assist the CBMP PIU in developing procurement capacity at the community level Rating of residu al risk S H II. Project specific Risks Technical/ Design Implementatio n capacity Availability and accessibility of agricultural inputs is a risk. The input supply depends on the availability of wholesale input suppliers and retailers who can procure inputs in bulk and have the required distribution network in place in areas benefiting from the Project. Sub-project failure risks due to inadequate oversight. Implementation capacity is generally weak reflecting the low levels of skills and incentives within the public sector. This may increase the risk of timely preparation of all the necessary documents and establishment of implementation arrangements. M S The issue of availability of agricultural inputs is an item of particular focus for the early stages of project implementation. Arrangements have been made with WFP to procure seeds and tools. The design incorporates broad oversight for the Project to be implemented by the MoARD. Technical audits will be used to monitor the implementation of the sub-projects and recommend remedial actions. Poor performance by implementing partners would disqualify them for future funding. Provision has been made in the Project to help improve the existing weak technical capacity in the public sector by recruiting on a need-basis local and international consultants to train and support local technicians. Fiduciary arrangements will be outsourced to the ongoing CBMP PIU. M S 22

31 Risk factors Matching grants to be captured by elite Description of risk For Guinea-Bissau as a whole, risks of poor governance in implementation remain high and anti-corruption instruments in their infancy. Rating of risk H Mitigation measures Rating of residu al risk S Financial management Procurement FM capacity after CBMP closes in March 2011, after one year of prospective extension, needs to be assured. Availability of counterpart funding to pay for taxes, as required by EC, needs to be provided for. CDD activities are risky from the fiduciary perspective given the nature of activities involved. Given the low capacity at the community level, procurement unit may be challenged by the number of subprojects under component 2.1 which might be too high to handle effectively, in certain times. H S Establishment of low ceilings Funds will not be granted to individuals. Beneficiaries will be involved in decision making, including choice of sub-projects. Effective supervision and monitoring to ensure that the benefits are going to the intended target group. Representatives of Community Based Organizations (CBO)/NGOs, and civil society will be represented as part of the approval committees. Transparency in the use of funds for subprojects would be ensured through proper accounting and auditing. The extension of the closing date of the CBMB by one year is being prepared by the time of the writing of this EPP. In addition, the Project has hired an accountant on competitive basis to be trained on the job to perform the FM functions after CBMP closing. The Government is contemplating the establishment of a special system whereby special treasury checks will be issued from time to time in an amount sufficient to cover any taxes imposed in connection with eligible expenditures. The existing CBMP PIU is familiar with the implementation of CDD operations and the internal and external auditing measures in place will contribute to the proposed risk mitigating measures The procurement unit will identify in advance a roster of qualified procurement specialists with experience in CDD projects, in order to prevent possible heavy workload, and to help building capacity at community level in procurement. The PIU should accelerate the elaboration of the manual which will include a procurement section detailing especially procurement at the level of the communities. M S Social and environmental safeguards The environmental and social impacts of the added activities are expected to be minimal, site specific, and manageable to an acceptable level. L Social and Safeguards Experts have been hired to provide the necessary support to the farmer s groups and monitor compliance. III. Overall Risk (including Reputational Risks) Despite the limited scope of the activities proposed and the use of existing or tested implementation mechanisms in country, the governance, fiduciary and capacity environment of Guinea-Bissau justifies the rating of the overall risk for this operation as substantial. Memo items: Abbreviations: L =Low; LH = L with H/S Element; M =Moderate; S = Substantial; H =High L S 23

32 G. Terms and Conditions 72. This operation contemplates two grant agreements: i) a grant agreement between the WFP and the Bank for implementation of component 1 of the Project; and ii) a grant agreement between the Bank and the Republic of Guinea-Bissau in connection with the implementation of Components 2 and 3 of the Project. Generally, the terms and conditions applicable thereto are as follows: (i) Board condition: none. (ii) Effectiveness conditions: The Government of Guinea-Bissau will have signed a letter of understanding with WFP in form and substance acceptable to the Bank setting forth the scope, modalities, targeting of beneficiaries, and other matters for implementation of component 1 of the Project; (iii) Disbursement Conditions : Grant agreement between Guinea-Bissau and the Bank: (a) No disbursement under Component 2 shall be made until the World Bank has received evidence satisfactory to it that: (i) The ESMF and the RAP have each been prepared, approved, adopted and publicly disclosed by the Recipient, in form and substance acceptable to the World Bank; (ii) The Operations Manual has been approved and adopted by the Recipient, in form and substance satisfactory to the World Bank; and (iii) At least three (3) regional coordinators with offices at the regional level reporting to the MoARD have been appointed, each having terms of reference, skills, experience and qualifications acceptable to the World Bank. Grant agreement between the WFP and the Bank: (a) For disbursement relating to Sub-component 1.2 (Food-for-Work Program), evidence satisfactory to the World Bank has been provided that the ESMF and the RAP have each been prepared, approved, adopted and publicly disclosed by the Recipient, in form and substance acceptable to the World Bank; and (b) Written confirmation from the Recipient that the RAP is in form and substance acceptable to it. (iv) Legal Covenants: The Republic of Guinea-Bissau will submit to the Bank, by no later than March 31, 2010, a strategy and time bound action plan for, communications to 24

33 stakeholders and enhancement of public awareness regarding the objectives of and activities under the Project. The grant agreement between the WFP and the Bank will include standard provisions, except that (as under the FPCR-funded EFSSP), (i) the procurement and anti-corruption policies and procedures of the WFP will be applied for this project in lieu of the standard Bank procedures and guidelines; and (ii) financial management for Component 1 of the Project will be undertaken in accordance with the Financial Management Framework Agreement (FMFA), dated March 10, 2006, between the Bank and the UN. 25

34 Annex 1: Description of Project Components GUINEA-BISSAU: Emergency Food Security Support Project Background 1. Guinea-Bissau s economy is dominated by cashew nut production, which accounts for about 98 percent of national export earnings. Cashew nut production has displaced land from rice and other food crop production. In recent years, the country has been facing a chronic rice production shortage with rising import costs contributing to an increase in the current account deficit. For example, in 2007/08 domestic rice production was estimated to be 85,000 ton of milled rice, with the country s rice consumption estimated at about 140,000 ton. Drop in cashew nut prices is likely to increase the number of people vulnerable to food. The producer prices of cashew nuts dropped from 300 CFAF in 2008 to 186 CFAF in The drastic drop resulted from political instability mainly related to the assassination of the President of Guinea Bissau on March 1, 2009, hours after the murder of the Chief of Staff of the Army. These political events coincided with the beginning of the 2009 cashew nuts marketing season, in which for security reasons foreign marketing firms did not participate. Furthermore, the international financial crisis resulted in lower availability of credit from commercial banks to local traders. These two factors combined are likely to increase the number of people vulnerable to food as a consequence of reduced farmer s income. In 2008/9 more land was brought into production in response to the Government s emergency plan, but rains have been erratic and preliminary reports indicate serious damages to crops, mainly rice. 2. Objective and Rationale. The Project s Development Objective is to improve access to food for the most vulnerable population of the Member Country, including children, and to increase smallholder rice production in Selected Areas. This would include: (i) immediate provision of food to children and other vulnerable groups; (ii) rapid provision of a demand-driven basis, of critical inputs (seeds and fertilizers) and agricultural implements to small scale/poor farmers to increase the productivity of key food crops; (iii) the rehabilitation of feeder roads; and (iv) the provision of capacity support to affected small-scale farmers. The Bank and EC involvement brings in considerable global experience and knowledge on supporting pro-poor programs and smallholder farmers in countries emerging from conflicts such as Guinea-Bissau. Therefore, the Project design adopts community and demand-based approach to ensure that project beneficiaries do have a say in determining the project activities that best meets their needs and can be sustained. The Project will target six regions: Oio, Cacheu, Biombo and Bissau in the northern part of the country, and Bafata and Gabu in the eastern part of the country. The selection of the project area for this project has been guided by the following criteria: favorable agro-climatic conditions for rice production, significant population density, accessibility throughout the year, market access, and existence of some supporting infrastructure. The Northern area has been most vulnerable to poverty, characterized by high levels of food insecurity and a high proportion of vulnerable groups, but also with a significant potential for long term sustainable development. 26

35 Project Components 3. Similar to the Bank financed project approved last year, the proposed Project would help the Government of Guinea-Bissau s response to the food price crisis and will include three components: (i) support to the most vulnerable population; (ii) support for increasing food production; and (iii) project coordination, monitoring and evaluation. The proposed Project is expected to be implemented over a period of 18 months. Component 1: Support to the Most Vulnerable Population ( 2.05 million) 4. This component will be implemented by the WFP and is designed to support the most vulnerable population through: (i) a school feeding program; and (ii) a food-forwork program to rehabilitate feeder roads. Since the WFP program is already under implementation, channeling funds from this project through the WFP will quickly allow providing an emergency response to meet the needs of the most vulnerable population of Guinea-Bissau. Using the existing WFP framework and partners will also minimize the implementation delays as well as the risk of elite capture. The WFP will enter into a specific grant agreement with the Bank and a letter of understanding with the Government of Guinea-Bissau in connection with the implementation of this component. A total of seven percent of the funds allocated to this component will be used to cover WFP s administrative costs. The implementation period of this component will be for one year for the school feeding program (February to November 2010) and 18 months for the food-for-work program (March 1, 2010 to August 31, 2011). 5. WFP has been selected to implement this component due to its in-country experience accumulated during the implementation of the ongoing Protracted Relief and Recovery Operation (PRRO) since The main objective of the WFP programs under implementation is to: increase enrolment and attendance rates, especially for girls, at preprimary and primary schools in the most vulnerable areas of the country (through the school feeding program); improve household food security in target areas through the rehabilitation of rural feeder roads and thereby create community assets (through the food-for-work program); and strengthening capacities of the Government and local NGOs to establish and manage food-assistance and hunger-reduction programs. In terms of overall food purchase for the next 18 months, this component will purchase about 1,477 metric tons of food commodities for both programs (617 metric tons for school feeding program and 860 metric tons for food-for-work program). Sub-component 1.1: School Feeding Activities ( 0.70 million) 6. The sub-component will support school feeding for pre-primary and primary school students in targeted regions. It will complement the ongoing WFP program, adopting the same implementation modalities. The school feeding activities will be funded for one school-year only, and are expected to serve one meal a day to about 28,000 students in 232 schools within the six regions covered by the proposed project. The food basket will contain cereals, corn-soya blend (CSB) food, vitamin A-enriched vegetable oil and sugar. One meal will be served in the pre-primary and primary schools, as a hot meal during the morning or afternoon breaks depending on the school children shifts. In addition, the proposed program will provide girls take home rations. Overall, 27

36 the proposed activities are expected to have a positive effect on the nutrition of participating students as well as school attendance and performance of those students. Furthermore, it is expected that school feeding activities will have a positive impact on school attendance of girls. Sub-component 1.2: Food-for-Work to Increase Food Production ( 1.35 million) 7. The food-for-work activities will support the rehabilitation of about 300 kilometers of feeder roads in areas of food production in order to improve access to the production areas as well as agricultural marketing. This program is expected to provide employment opportunities to rural dwellers (about 162,000 work-days) and rehabilitate much needed feeder roads in the rural areas. Part of the beneficiaries from the food-forwork program will be women. WFP assistance program is projected to benefit 18,900 beneficiaries. Overall, this sub-component is expected to provide employment opportunities to rural population and rehabilitate about 300 kilometers of feeder roads in the six regions covered by the Project. The sub-component will also facilitate trading in terms of marketing of agricultural output and agricultural inputs. 8. This sub-component pursuant to the RAP may also finance (i) investment and compensation costs of resettlement activities, and (ii) technical capacity and/or materials in connection with the maintenance of the feeder roads Component 2: Support for Increasing Food Production ( 0.53 million) 9. This component will be implemented by the MoARD through a Technical Coordination Unit (TCU) and it is designed (i) to provide matching grants to smallholder farmer groups aimed at increasing food production; (ii) to promote crop diversification through the distribution of additional seeds, tools and fertilizers; and (iii) to strengthen the technical capacity of the MoARD to assist smallholders and their organizations. While the Project would support diversification and production of all food crops, the main focus of intervention will be to increase rice production. Sub-component 2.1: Matching Grants for Food Production ( 0.20 million) 10. This sub-component will provide seeds and fertilizers and demand-based support, in the form of matching grants to communities and smallholder farmer groups, for smallscale agricultural infrastructure, production, processing and marketing sub-projects that would deal with rice and other staple food crops only (i.e. no cashew nuts). The key results expected from the implementation of this sub-component are (i) increased adoption of new technology to enhance production of food crops, particularly rice; and (ii) increased assistance to smallholder production activities and access to agricultural markets through provision of matching grants. 11. This sub-component is expected to finance purchase of seeds and fertilizer to cover additional 1,000 ha and provide 40 small-grants for other type of sub-projects to complement the activities initiated under the ongoing FPCR-funded EFSSP. The subprojects to be funded under this sub-component will be initiated upon the request of 28

37 communities and smallholder groups and will be prepared with the assistance of NGOs that will be trained and equipped for this task. The eligibility, screening and approval criteria would be the same as that used in the FPCR-financed EFSSP. The smallholder farmer groups will make in-kind contribution of at least 10 percent to the matching grants. The ratios and funding ceilings may be reviewed periodically and recalibrated to take into account the changing circumstances and lessons learned during implementation. 12. The demand-based matching grants approach has been adopted for the FPCRfunded EFSSP and is currently being used in Guinea-Bissau under three projects: CBMP funded by the Bank, GEF and EC; Projecto de Reabilitação Social do Sector Agrario funded by the AfDB; and by the Community Support Program funded by the EC. These programs developed simple methodologies that allow communities to prepare subprojects with support from NGOs for funding. The demand based matching grants have been successful since they respond to community needs and use simplified procurement procedures. In addition, they involve community during the preparation and implementation. 13. It is expected that this component will support 2,000 smallholder farmers already engaged in production to adopt new technologies to increase production and productivity by providing agricultural inputs and seeds. Assuming smallholder farmers have on average 0.5 ha of land each, this sub-component can produce additional 1,000 tons of paddy rice (as a result of the support by the Project), which can contribute to reducing the rice deficit. The main source of increase in rice production would be (i) an increase in area under rice cultivation, and (ii) an increase in rice yields by providing improved inputs and technical assistance. In addition, these sub-projects are expected to increase production of other food crops as well as reduce losses of crops through improved postharvest management, including storage. 14. Smallholder groups will be eligible to receive support, provided that the subproject proposals result from a community-level participatory planning exercise involving a cross section of the population, including women. Smallholders groups or associations will also be eligible for support, provided that these are either formally registered or informally recognized by the local community and authorities, and have the ability to keep records. During implementation, the eligibility criteria would be further refined and strictly followed to avoid elite capture of these groups. 15. Therefore, the Project will have an operations manual that will include 2 lists of activities, positive and negative. The positive list of activities will be funded by the Project, and will include activities that are related to increased productivity of food crops, such as: provision of critical inputs (seeds, fertilizers, and pesticides) and agricultural tools and small investments to small scale/poor farmers to increase the productivity of rice and other food crops; provision of facilities for improved post-harvest management; seed multiplication; and low cost agricultural processing and marketing equipment. 29

38 16. The negative list of activities will include a list of activities that will not qualify for funding support. This would include activities that: have a negative impact on the environment and/or do not comply with the Environmental Safeguards, such as: (i) any sub-projects not screened for environmental or social impacts; (ii) sub-projects with any activities inside protected areas or critical natural habitants; (iii) dams more than 10 meters high; (iv) sub-projects requiring the use of agro-chemicals in WHO categories IA, IB or H; (v) sub-projects that would damage non-replicable cultural property; (vi) subprojects involving logging in natural forests, or processing of timber other than from plantations; (vii) sub-projects that require the use of water from international rivers; and (viii) sub-projects that require involuntary resettlement are for private use or non-related to improvement of food productivity, such as houses, schools, health centers, etc.; or cashew production; would result in a conflict of interest, such as sub-projects in which the beneficiaries are members or staff of (i) the Project Committees at all levels; (ii) the PIU and TCU; (iii) local government (regional directors, regional coordinators and assistant administrators, etc); and Sub-component 2.2: Technical Support ( 0.33 million) 17. The objective of this sub-component is to strengthen the technical capacity of the MoARD to assist smallholders and their organizations. The expected results under this sub-component include: (i) improved technical capacity of MoARD; (ii) improved availability of critical agricultural inputs for small holders; (iii) improved government capacity as a whole to support smallholder farmers in the project area; and (iv) capacity for early warning system for food security to avoid any impending food crisis and thus improve food security. This sub-component also takes a gender and vulnerable group sensitive approach to capacity building by targeting female smallholder farmers. 18. It is expected that about 12 selected staff from the MoARD will benefit from training in various technical fields to ensure adequate technical assistance to farmers and improve the MoARD capacity for early warning. Due to lack of available capacity in country most of this training will be undertaken elsewhere in Africa. 19. This component will also fund some activities of the MoARD such as data collection in the whole country. This activity will involve over 80 staff in 10 regions in the country for a period of three months. 20. Technical assistance and training would also be provided to MoARD staff for the early warning system for food security. The early warning system would deal with monitoring food prices (domestic and international), domestic consumption and production of food commodities as well as stocks of critical food commodities at the regional and national levels in Guinea-Bissau. 21. Smallholder groups will be supported by NGOs hired under the Project as well as by MoARD staff and the TCU. In addition to being responsible for project implementation, MoARD will particularly be involved in high quality rice seed production, organizing farmer demonstrations dealing with new technology and 30

39 management practices for rice and provision of agricultural extension and farmer information. Component 3: Project Coordination, M&E ( 0.29 million) 22. The objective of this component is to enhance MoARD capacity to coordinate project implementation, visibility, monitoring and evaluation and resources management in accordance with the Project s objectives and procedures. 23. Under this component the Recipient will also finance communication and visibility activities aimed at publicity of the donor supported activities. This may include visit by representatives of the donor (EC and the World bank) of any part of the Recipient s territory for the purposes related to the Project Sub-component 3.1: Project Coordination ( 0.18 million) 24. The MoARD is responsible for overall project implementation and has delegated the Department of Rural Engineering to be accountable for the coordination, management and oversight of the Project in order to attain its objectives, as well as communications outreach. This component will support MoARD in terms of its management capacity to coordinate and implement the Project. Sub-component 3.2: Monitoring and Evaluation ( 0.11 million) 25. Monitoring and evaluation focuses on data collection and reporting on key performance output and impact indicators, including data collection, surveys, participatory assessments and mid-term and final evaluations. A specialized M&E section will be set up within the TCU. 26. In connection with the rehabilitation of the 300 km of feeder roads, this subcomponent will finance the preparation of the RAP. 27. Monitoring and evaluation will be carried out by the TCU, with support from the MoARD Planning Office. The M&E Specialist in the TCU will be responsible for: (i) overseeing data collection; (ii) storing, consolidating and analyzing data, and providing feedback at all levels (project coordinator, collaborating public institutions, farmers associations etc.); (iii) providing training on specific M&E tasks to colleagues and partners; and (iv) facilitating project management self-assessment during yearly and midterm evaluation workshops. 28. The implementation modalities as described above, Component 1 will be implemented by WFP whereas Components 2 and 3 will be implemented by the MoARD. Component 1 of the Project will be implemented by WFP pursuant to a grant agreement with the World Bank as well as a letter of understanding with the Government of Guinea- Bissau. The Project will be under the general oversight of the Project Steering Committee (PSC), chaired by the Minister of MoARD. The PSC will include representatives from the Ministries of Finance, Education, Social Affairs, and other relevant government entities. The PSC will be responsible for approving the annual work program and budget, 31

40 providing necessary policy guidance to the TCU, addressing any emerging problems that are likely to affect project implementation and finally to provide oversight during the implementation of this project. 32

41 Annex 2: Results Framework GUINEA-BISSAU: Emergency Food Security Support Project PDO Outcomes Improved access to food for vulnerable groups including children Increased rice production in selected areas Outcome Indicators (indicators will be gender-disaggregated) Pre-school and primary students receiving at least one meal per day (number of children) Number of work-days (rations distributed to rural producers) in food-for-work activities (number of days) Beneficiaries of food-for-work program (number) Rice produced in the new rehabilitated areas under the Project (tons) Direct project beneficiaries (number), of which female (percentage) Use of Project Outcome Information To monitor assistance to vulnerable population, including children To monitor the implementation of mediumterm activities Intermediate Results Intermediate Result Indicators Use of Intermediate Result Monitoring Component 1: Support to the most vulnerable population Food distributed to vulnerable people Meals served per day (number) Monitor the quantity of meals served per day New roads rehabilitated Roads rehabilitated, rural (km ) To monitor the quantity of new feeder roads rehabilitated. Component 2: Support for Increasing food production Increased adoption of new technology (seeds and fertilizer) Increased assistance to smallholder production activities Seeds procured and distributed to farmers (tons) Fertilizer procured and distributed to farmers (tons) Area cultivated with improved seeds and adequate dosage of fertilizers (ha) Sub-projects approved and under implementation (excluding seeds and fertilizers) (number) To track implementation of seed and fertilizer distribution To monitor adoption of new technology To track implementation of small holder assistance program. Component 3: Project Coordination and M&E Improve project reporting and management Satisfactory level of project implementation according to annual plan (yes/no) Monitor the progress of project implementation 33

42 Arrangements for Results Monitoring 1. Results monitoring will assist project management in making implementation decisions and generate lessons to effectively implement the Project. Result monitoring will include two aspects: (i) Impact assessment surveys, focussing primarily on the degree of achievement of overall project development objective, against baseline data that will be collected; and (ii) Ongoing management information system (MIS) for assessment of intermediate results of project components. 2. A detailed description of project s output and activities monitoring procedures will be developed in the Project s implementation operations manual. Impact Assessment Surveys 3. Impact assessment surveys aim at collecting information about project s contribution to the enhancement of participant smallholder farmers agricultural production and income as well as to appraise how this is distributed by gender, social groups and geographical area. 4. In addition to the household surveys, a direct appraisal of income generated by participation in project activities will be carried out by collecting annual official accounting data (e.g. revenue, capitalization) of a sample of farmer associations and cooperatives. Perception of change in income and capitalization will also be explored in further detail through in-depth interviews or focus groups with project participants. 5. Triangulation among these sources (surveys, farmer association accounts and indepth interviews/focus groups) is expected to enhance the validity of the overall impact assessment findings. Periodic Management Information System 6. Achievement of intermediate results for Component 1 (Support to the most vulnerable groups) will be monitored by keeping track of the quantity of new roads rehabilitated in kilometres and the number of children receiving daily meals. 7. Achievement of intermediate results for Component 2 (support for increasing food production) will be monitored by keeping track on the number of smallholder farmers with access to agricultural inputs and numbers of sub-projects approved and under implementation. 8. A strong project management information system is required to deal with the geographical dispersion of this project. Beyond regular monitoring meetings, an annual internal evaluation and re-planning workshop among the TCU and its main institutional partners is recommended to assess progress made by the different project components and draft the work plan for the forthcoming year. 34

43 Organizational set up of the Result Monitoring System 9. To manage the above data collection, processing and use procedures, an M&E unit will be established in the national level TCU, with a full-time M&E specialist, responsible for (i) overseeing data collection; (ii) storing, consolidating and analyzing data, and providing feedback at all levels (project manager, collaborating public institutions, private outsourcers, farmers associations etc.); (iii) providing training on specific M&E tasks to colleagues and partners; and (iv) facilitating project coordination self-assessment during yearly and mid-term evaluation workshops. 35

44 Table A 2.1 Arrangements for Results Monitoring Summary Table To provide a comprehensive summary of the results, please note that this table combines the results monitoring of the two parallel financed operations. For implementation and completion (ISR/ICR) purposes for this operation, please refer to the relevant results under the EUFRF (bolded). For further details on the FPCR operation, please refer to the relevant Project Paper. Project Outcome Indicators Pre-school and primary students receiving at least one meal per day (number of children) Work-days (rations distributed to rural producers) in food-for-work activities (number of days) Beneficiaries of food-for-work program (number) Rice produced in the new rehabilitated areas under the Project (tons). Estimated target values (cumulative) Data Collection and reporting (all indicators will be disaggregated by gender) Source of Baseline YR1 YR2 YR3 Frequency and Data Collection funds Reports Instruments FPCR* 0 Monthly and WFP reports 14, annually EUFRF* 0 Monthly and WFP reports 0 28,000 0 annually EFSSP 0 Monthly and WFP reports 14,000 28,000 0 Project* annually FPCR 0 Monthly and WFP reports 40, , ,000- annually EUFRF 0 Monthly and WFP reports 0 135, ,000 annually EFSSP 0 Monthly and WFP reports 40, , ,000 Project annually FPCR 0 Monthly and WFP reports 10,000 20,000 20,000 annually EUFRF 0 Monthly and WFP reports 0 15,750 18,900 annually EFSSP 0 Monthly and WFP reports 10,000 35,750 38,900 Project annually FPCR 0 Baseline, and Cross-sectional 0 2,700 7,500 annually questionnaire surveys EUFRF 0 Baseline, and Cross-sectional 0 0 1,000 annually questionnaire surveys Responsibility for Data Collection WFP WFP WFP and MoARD WFP and MoARD WFP and MoARD WFP and MoARD WFP and MoARD WFP and MoARD WFP and MoARD MoARD MoARD 36

45 Direct project beneficiaries (number), of which female (percentage) *These figures are annual not cumulative. EFSSP Project EFSSP Project ,000 (14, ,000 +2,000) 50% 0 2,700 8,500 65,750 28, ,750 +2,000 50% 68,900 28, ,900 +2,000 50% Baseline, and annually Every six months and annually Cross-sectional questionnaire surveys WFP and project reports MoARD WFP and MoARD Baseline YR1 YR2 YR3 Frequency and Reports Data Collection Instruments Responsibility for Data Collection Intermediate Results Indicators for Component 1: Support to the most vulnerable population Meals served per day (number) FPCR* EUFRF* EFSSP Project* FPCR 0 14, Monthly and WFP reports WFP annually ,000 0 Monthly and WFP reports WFP annually 0 14,000 28,000 0 Monthly and WFP reports WFP annually ,000 2,000 WFP reports MoARD & WFP Annually 0 1,000 3,000 3,000 Annually WFP reports MoARD & WFP Area of mangrove land for rice rehabilitated (ha) Area of land of lowland rice FPCR rehabilitated (ha) Roads rehabilitated, rural (km) EUFRF Annually WFP reports MoARD and WFP Intermediate Result Indicators for Component 2: Support for increasing food production Seeds procured and distributed to farmers (tons) FPCR 0 Baseline, and annual reports EUFRF Baseline, and annual reports EFSSP Baseline, and annual Project reports Project reports Project reports Project reports MoARD MoARD MoARD 37

46 Fertilizer procured and distributed to farmers (tons) Area cultivated with improved seeds and adequate dosage of fertilizers (hectares) FPCR EUFRF EFSSP Project FPCR EUFRF EFSSP Project ,000 6, , ,000 7,000 Baseline, and annual reports Baseline, and annual reports Baseline, and annual reports Baseline, and annual reports Baseline, and annual reports Baseline, and annual reports Project reports Project reports Project reports Project reports Project reports Project reports MoARD MoARD MoARD MoARD MoARD MoARD Baseline YR1 YR2 YR3 Frequency and Reports Data Collection Instruments Responsibility for Data Collection Sub-projects approved and under implementation (excluding seeds and fertilizers) (number) Intermediate Result Indicators for Component 3: Project Coordination and M&E FPCR EUFRF EFSSP Project Baseline, and annually Baseline, and annually Baseline, and annually Project reports Project reports Project reports MADR MADR MADR Satisfactory level of project implementation according to annual plan (yes/no) EFSSP Project - Yes Yes Yes Quarterly Project Reports MADR 38

47 Annex 3: Summary of Estimated Project Cost GUINEA-BISSAU: Emergency Food Security Support Project Table A 3.1 Summary of the EUFRF-funded Project Cost by component and Expenditure Category in Euro FY10 FY11 EUFRF Total Percentage of the Total Project Project Components Component 1- Support to the Most Vulnerable Population 1,536, ,697 2,050, (1) Direct Operation Costs for School Feeding Program 405, , , (2) Direct Operation Costs for Food-For- Work Program 1,030, ,613 1,266, (3) Indirect Support Costs 100,506 33, ,112 5 Component 2 Support for Increasing Food Production 170, , , Goods, works, consultants services, Sub-grants under Sub-component , ,000 7 Goods, consulting under component , , , Component 3 Project Coordination Monitoring and evaluation 200,150 89, , Goods, consultant s services 160,000 20, ,000 6 Operating costs (Including RAP) 40,150 69, ,000 4 Total Project Cost 1,906, ,547 2,870,

48 Table A3.2 Summary of the Project Cost Eligible expenses (in Euros) Breakdown of eligible costs All Years Year 1 Year 2 1. Human Resources & Travel 192, , , Human Resources & Travel - HQ Human Resources & Travel - Country level 192, , , Equipment & Supplies including: 1,867, ,465, , Seeds 70, , Fertilizers 64, , Food 1,732, ,465, , Others Local Operating costs 116, , , Other costs, services including: 115, , , Monitoring & evaluation 113, , , Audit Others 1, , Others (including Subcontractors): 419, , , Micro-finance 200, , Social transfer Others 219, , , Visibility 23, , , Total direct eligible costs (1 to 6) 2,735, ,872, , Indirect Support Cost to WFP 134, , , Total Project Cost 2,870, ,906, ,

49 Annex 4: Financial Management and Disbursement Arrangements GUINEA BISSAU: Emergency Food Security Support Project Introduction 1. The Bank policy requires that the Recipient put in place adequate FM arrangements including budgeting, accounting, internal controls, funds flow, financial reporting and auditing arrangements. These arrangements need to be in place before project implementation begins, and should be maintained during project implementation. According to OP 8.00, Emergency operations, as is the case here, are processed under accelerated, consolidated, and simplified procedures and are subject to streamlined ex-ante requirements, including in fiduciary and safeguards areas. 2. A Financial Management Assessment (FMA) was carried out in accordance with the Financial Management Practices Manual issued by the Financial Management Board on November 3, The objective of the assessment was to determine whether the implementing entity in place has acceptable financial management arrangements, which will ensure: (i) the funds are used only for the intended purposes in an efficient and economical way; (ii) the preparation of accurate, reliable, and timely periodic financial reports; and (iii) safeguard the entity s assets. 3. This financing will include short-term support to the most vulnerable populations and medium-term actions to enhance food production and productivity. For the latter, the Project will provide matching grants to smallholder groups to purchase inputs to support rice production. 4. Three IDA-funded investment projects are currently active in Guinea-Bissau, in addition to, at current, four Trust Fund operations, including the ongoing FPCR-funded EFSSP: The Multi-Sector Infrastructure Rehabilitation Project started its activities in May 2007 and is expected to close in June Most recently, in October 2009, a new Rural Community-Driven Development grant on the total amount of US$5 million has been approved, complemented by US$5 million from the State and Peace Building Fund. The CBMP, funded by a US$3 million IDA grant plus a $4.8 million GEF Grant, became effective on March 14, 2005 and is expected to close on March 31, The CBMP PIU has an established FM system and has been producing regular interim financial reports. The CBMP is implementing activities similar to the proposed Project through a demand based approach already in place under the Local Environmental Initiatives Funds (FIAL). The CBMP PIU has complied with fiduciary requirements, including timely conduct of audits. For these reasons, the fiduciary arrangements of the CBMP will be used for the proposed EUFRR operation, with the implementation of some improvements as indicated in the financial management action plan. Summary of the Project 5. This project will complement the FPCR-funded EFSSP and help the Government of Guinea-Bissau s response to the food price crisis and will include three components: a. Support to improve access to food for the most vulnerable population through school feeding and food-for-work programs to be implemented by the World Food Program; 41

50 b. Support the implementation of the country s Emergency Plan for the Agricultural Campaign proposed by the MoARD to increase food production and productivity, with a particular focus on rice; and c. Project coordination, monitoring and evaluation. The proposed Project is expected to be completed over a period of 18 months. Country Accountability Issues 6. Due to the social and political conflict situation in the country, the Country Financial Accountability Assessment (CFAA) carried out by the Bank in March 2006 has not yet been implemented. However some studies conducted by donors suggest that the Government has made considerable progress in the area of financial management since However, a few aspects have been identified for further strengthening, including the need to improve the budget classification system; increase the computerization of FM systems; improve accounting that will eventually move towards an accrual basis; and improve the quality of expenditure reporting through IFRs. So, the Bank has taken special measures to ensure adequate financial management of the projects. Project management units are often established to manage IDA-financed projects and Bank funding is following special mechanisms to mitigate fiduciary risks. ASSESSMENT OF RISKS Inherent Risks At the country level 7. The Country Integrated Fiduciary Assessment (CIFA) of the budget preparation, execution and control was conducted in The main finding of the report in terms of budget execution is that in Guinea-Bissau, the budget execution process suffered from a number of weaknesses and is generally weak. Thus, one of the main issues was the strong centralization of the expenditure control that in a situation of loose management and cash shortage could be seen as an effective alternative to assure at least some budgetary discipline. The main weakness is the fact that the government had been unable to adjust to a deteriorating macroeconomic environment in a transparent way and the almost complete absence of effective reporting on the budget execution. This situation highlighted the dysfunctional aspects of the budget execution process. The final accounts of the fiscal years were not consolidated in time creating disruptions in the flow of information about the execution of the budget. The Treasury did not have yet a sufficiently developed State accounting system. The staff kept records according to single entry bookkeeping methods, instead of double entry, and there was no balance sheet. Since 2005, and especially during 2007, the situation has improved. The activation of the treasury committee and other public expenditure management reforms have helped improve the prioritization of expenditures and reduced fiduciary issues. 8. However, on the budget control side, there is still no efficient mechanism of internal control to address budget execution problems. The General Audit Office did not operate well, especially for the ex-post control of the public accounts not audited (even prepared by the accountant general) since Based on the main findings of the PER, even though the situation has improved, the mission concluded that the risk at the country level is still high. 42

51 At the Entity level 9. The entity responsible for the implementation of this project is the Ministry of Agriculture and Rural Development. Due to low capacity at the MoADR to implement and monitor the Project, the risk rating is substantial. To avoid slippage, the financial management of the Project will be outsourced to an existing Bank funded project, the CBMP. In addition, to support the capacity of the PIU of CBMP, an accounting staff has been hired as consultants to work specifically on FM aspects related to EFSSP. At the Project level 10. Project level risk refers to aspects related to the Project Implementation Unit. The PIU of the CBMP is familiar with Bank procedures and with the implementation of CDD type operations. But, due to the high fiduciary risk at the country level the project level risk rating is high, reduced to moderate with the proposed mitigating measures. Control Risk Accounting and budget execution 11. The risk is moderate. Funds of Flow 12. For component 1 the funds will be disbursement directly to WFP and the management and reporting will follow the provisions under the Financial Management Framework Agreement (FMFA) signed March 10, 2006 between the Bank and the United Nations. 13. For component 2, separate Designated Account will be opened in a commercial bank to track the project expenditures. This account will be managed by the Minister of Agriculture and Rural Development, and the Treasury Department of the Minister of Finance with technical support from the PIU of the CBMP. Reporting 14. A quarterly un-audited Interim Financial Report (IFR) will be prepared in form and substance satisfactory to the World Bank. An experienced accountant in place will prepare financial report in format and substance acceptable to the Bank 43

52 Risk Table A 4.1 Summary of Risk Analysis and mitigation measures Risk Rating Risk Mitigation Measure Conditio nality Residual Risk Rating Inherent Risks: H S Country: Poor governance/corruption/ Entity Levels Low capacity of MoARD to implement and monitor the Project H S Key FM oversight elements of the Project are entrusted to the Government system. Capacity for external audit is enhanced by the recruitment of the external private sector audit firm to carry out the external audit. The Project will be implemented by the MoARD and the Project s fiduciary aspects will be implemented through the CBMP PIU. An Accountant has been recruited to support the implementation of financial management aspects of the EFSSP. No H M Project level CDD activities are risky from the fiduciary perspective given the nature of activities involved. FM capacity after the CBMP closes (currently Schedule to close end March 2010). H S The existing CBMP PIU is familiar with the implementation of CDD operations and the internal and external auditing measures in place will contribute to the proposed risk mitigating measures The Project has hired an accountant to take over FM aspects of the Project when the CBMP closes. But a one year extension is currently under preparation at the time of writing of this EPP. Hire an accounta nt M M Availability of counterpart funding H The Government is contemplating the establishment of a special system whereby special treasury checks will be issued from time to time in an amount sufficient to cover any taxes imposed in connection with eligible expenditures. Control Risks: M M Accounting and budget execution An administrative and accounting manual of procedures has been developed and provide all the required details on accounting and financial procedures. However, the internal control system does not operate effectively to ensure proper authorization of expenditures in accordance with budget, and proper authorization of payments. Internal Audit Internal audit function does not exist. M The Bank will organize workshops regarding this aspect beginning April 2010 Key internal control mechanisms (approval and authorization controls, bank 44 None M M

53 Risk External Audit Lack of qualified external auditors with experience satisfactory to the World Bank Risk Rating Risk Mitigation Measure S reconciliation statements, etc.) are included in the manual. The Bank will pay attention to the effectiveness of the internal control system during supervision missions and the review of the annual audit reports as well the auditor s management letter. M The external audit firm will be selected under a competitive basis and with ToRs acceptable to the Bank. Conditio nality Residual Risk Rating M L Funds Flow Funds may not reach the final beneficiaries. M A Designated account will be opened in a commercial bank to finance activities of the Project. L Reporting Lack of adequate capacity of the responsible entity to prepare the quarterly IFRs M The CBMP PIU will prepare the IFRs. The quality of these IFR will be improved, mainly in the following areas: (i) justification of discrepancies; (ii) justification of evidences of payments and (iii) tables such as sources and use of funds, bank reconciliation and use of funds by activity/component are done but the required forms are not being utilized Overall Risk S M Legends H: High S: Substantial M: Moderate L: Low M Strengths and Weaknesses Strengths 15. The CBMP PIU has been functional for about four years and it is responsible for the project financial management. The staff of the PIU have acquired experience in managing Bank financed projects, which will benefit this operation as well. The use of the existing PIU will also ensure the speedy and timely implementation of the proposed component. Some financial aspects as the internal control, the monitoring of the budget and the format of the IFR need to be strengthened. Weaknesses 16. Similar to other post-conflict countries, the general overall fiduciary environment in Guinea Bissau is very weak. Therefore, it is difficult to find people with strong experience in World Bank financial and disbursement procedures. 45

54 Action plan 17. Since Component 1 will be implemented by WFP, the following action plan refers to component 2 and 3 and will help to strengthen the financial capacity of the CBMP unit: Action By Whom By When 1 Update the content of the existing IFR format by CBMP Immediately including the Component FIAL activities 2 Review CBMP TORs for the Auditor to expand the scope of work to incorporate in the new project CBMP Delivered in December 4 Hold a capacity building workshop, including aspects of the monitoring of budget; internal control; and quality of IFR Financial Staff of CBMP 2009 One month after effectiveness FINANCIAL MANAGEMENT AND DISBURSEMENT ARRANGEMENTS Financial Management Arrangements Component 1- Financial Management Arrangements with WFP 18. Financial Management Arrangements with WFP will follow the Financial Management Framework Agreement (FMFA) signed March 10, 2006 between the World Bank and the United Nations. 19. WFP will prepare its annual plan budget forecast for review and approval by the Bank. WFP will handle all the financial management aspects using its own procedures set out in the WFP Financial regulations. It will maintain separate account for recording the transactions relating to this project. As per the FMFA, the Bank audit requirements are met through the normal biennium audit of the WFP. Therefore, separate audited financial statements and audit reports from WFP for this project are not required. WFP would submit half-yearly interim financial reports (IFRs) for the periods ending June and December to the Bank. The IFRs would include sources and uses of funds, expenditures appropriately classified with comparative actual and budgeted amounts, and balance of advances received from the Bank. 20. Disbursement arrangements. Upon effectiveness funds will be advanced to WFP Bank account that may be pooled with WFP resources. Replenishment of the advance for the rest of the period shall be based on the forecast and IFRs discussed above. Financial Management for Components 2 and Subcomponent 2.1 will provide demand-based support (matching grants) to communities and smallholders groups, for small-scale agricultural infrastructure, production, processing, and marketing sub-projects. The focus is on the activities in the regions of Oio, Cacheu, Biombo and Bissau (northern part of the country), and Bafata and Gabu (eastern part of the country). The selection of the project area for this sub-component was guided by the criteria briefly outlined in the implementation manuals. The sub-projects will be initiated upon the request of communities and smallholder groups and will be prepared with the assistance of NGOs that will be assessed, trained and equipped for this task. The sub-projects 46

55 will be screened for technical, financial, social and environmental feasibility, before they are approved for funding. To be approved for funding, the sub-projects will have to meet stringent eligibility criteria, which will be spelled out in the Operations Manual that is under preparation. The matching grant ratios and funding ceilings that apply will be periodically reviewed and recalibrated to take into account the changing circumstances and lessons learned during implementation. 22. The communities, when submitting proposals, will include a simple subproject plan complete with basic specifications and budget plans indicating the financial requirements for the subproject. The plan should identify the actions needed to complete the subproject, its approximate cost and timing and financing requirements (cash forecast) at each stage. If approved, this will be disbursed in three tranches (depending on size, length of implementation period and capacity of the subproject). The initial tranche will be based on approved subprojects proposal and subsequent payments will be based on physical and financial progress report. For accountability and transparency of this sub-component which forms 50 percent of the entire Grant, a trained bookkeeper and/or treasurer will be appointed in the community. Social accountability, public disclosure and anti-corruption complaints handling arrangement will be documented in the financing agreements with the Communities. This will include disclosure of the accounts and project activities at a public place in the community and design of a simple complaints structure to the Agencies. A firm CDD arrangement, including flow of funds will be described in the Operations Manual. Staffing Arrangements 23. The CBMP PIU will handle the financial management of this project. The PIU is well staffed with qualified Chief Financial and Accounting Officer and an accountant who are familiar with the World Bank disbursement and financial management procedures. The accountant works under the technical supervision of the Private Sector Rehabilitation and Development Project (PSRDP) chief financial and accounting officer. 24. Due to the expected expansion of activities created by the proposed project and as already recommended by the external auditor, an accountant has been recruited to help strengthen the financial management department of the CBMP. The responsibilities of the accountant include keeping of the books of accounts, preparation of the un-audited interim financial reports (IFRs) as well as the withdrawal applications. Accounting Procedures 25. A comprehensive, integrated budgeting and accounting system is in place. An administrative and accounting manual of procedures has been developed and provide all the required details on accounting and financial procedures. It sets out in particular: (i) the institutional arrangements and the relationship between all the stakeholders of the Project (Steering committee, PIU Staff, beneficiaries etc.); (ii) the planning and budgeting arrangements; (iii) the treasury procedures; (iv) the procurement procedures; and (v) the reporting formats and arrangements. Accounting transaction processing and reporting are based on use of TOMPRO accounting software. Preparation of the financial statements is governed by the SYSCOA and IPSAS/AIS. 26. The proposed project will follow the existing accounting system based on the FM procedures and accounting manual that provides for adequate segregation of functions, capable of recording all accounting transactions, and reporting correctly all assets and liabilities of the Project. 47

56 Budgeting Arrangement 27. Cash budgeting arrangement will be adopted. The annual budget will be based on an agreed annual work program, annual procurement plan and closely monitored during implementation. The monitoring of the budget of CBMP is not fully satisfactory. In order to address this issue, a capacity building workshop will be held at the end of April 2010 for all the finance staff working on World Bank assisted projects. Internal Control and Internal Audit 28. An internal audit function does not exist. However, the existing internal control framework is considered adequate for the time being. Key internal control mechanisms (approval and authorization controls, bank reconciliation, segregation of duties etc.) are included in the administrative and accounting manual of procedures in order to minimize the controls risks. During supervision mission, the FMS will review and ensure strengthening of the internal control environment and pay attention to effectiveness of the internal control system. However, the internal control system does not operate effectively to ensure proper authorization of expenditures in accordance with budget, and proper authorization of payments. The Bank will organize capacity building workshops regarding these aspects. 29. The system of audit in Guinea Bissau is not consistent and does not give guarantee that the funds are used in accordance with the objectives of the Program. So the Bank pays attention to the internal control system during supervision missions. External Audit Component 2 & 3- Audit Arrangements with PIU 30. External auditor with experience and qualifications satisfactory to the World Bank will conduct the annual audit of the project s financial statements. This audit should be carried out in accordance with International Standards on Auditing (ISA), and will include such tests and controls as the auditor considers necessary under the circumstances. Besides expressing an opinion on the Project Financial Statements in accordance with ISA, the auditor will be expected to prepare a report on internal controls, management letters giving observations and comments and providing recommendations for improvement in accounting records, systems, controls and compliance with financial covenants in the Financing Agreement of the Bank. The audit report and opinions in respect to the financial statements including the management letter and management response shall be submitted to the Bank within six months of the end of the GoGB fiscal year. The TORs acceptable to the Bank for appointment of the auditor will be prepared by GoGB. 31. The table below summarizes the auditing requirements under this project: Table A 4.2 Summary of Auditing Requirements for EUFF-funded project Audit report Entity Due Date 1) Project s financial statements PIU June All the audit reports will be submitted to the Bank within six months after year end, December 31 each year. 48

57 Reporting and Monitoring 33. A sound computerized information system has been established at the PIU of the CBMP. This system has been updated in such a way as to allow the production of the financial report. 34. The CBMP PIU prepares quarterly IFRs. However, the quality of these IFR needs to be improved, mainly in the following areas: (i) justification of discrepancies; (ii) evidence of payments; and (iii) tables such as sources and use of funds, bank reconciliation and use of funds by activity/component statements are done but the required forms are not being utilized. The IFRs format will be updated to include the proposed project. 35. Regarding component 1, WFP will submit unaudited interim financial reports (IFRs) (also referred to as Interim Consumption Reports) prepared in accordance with accounting standards established pursuant to WFP Financial Regulations and in the format agreed. The reports will be adequate to reflect the resources and expenditures related to the Project. The first set of IFRs will be submitted to the Bank not later than July 31, 2010, and cover the resources and expenditures for the six-month period of the project life. Subsequent interim IFRs will be submitted to the Bank not later than July 31 of each consecutive calendar year and will cover the resources and expenditures for the first six-month period of that calendar year. Formats of the IFRs have been agreed between the Bank and WFP during the negotiation. 36. For components 2 and 3, the Project will submit quarterly IFRs consisting of sources and uses of funds by main expenditures classification for the quarter and cumulatively. The IFR will also include a comparison of budgeted and actual project expenditures (commitment and disbursement) to date and for the quarter and financial progress regarding the matching grant. The format will remain the same already in use and content have been agreed at the negotiation. 37. The first IFR will be produced and submitted to the Bank in the quarter following project effectiveness. Quarterly submission will thereafter be within 45 days of the end of the quarter to which the IFR relates. 38. The CBMP PIU will produce Annual Financial Statements for component 2 and 3, and these statements will comply with International Accounting Standards (IAS) and World Bank requirements. 39. The Financial Statements 4 will comprise : (ii) A Statement of Sources and Uses of Funds (iii) A statement of Commitments (iv) The Accounting Policies Adopted and Explanatory Notes (v) A Management Assertion that project funds have been expended for the intended purposes as specified in the relevant Grant agreements 4 It should be noted that the program financial statements should be all inclusive and cover all sources and uses of funds and not only those provided through World Bank funding. They thus reflect all program activities, financing, and expenditures, including funds from other development partners. 49

58 Flow of Funds Arrangement Disbursement Arrangements 40. For Component 1 of the Project, the funds will be disbursed directly to WFP and the management and reporting will follow the provisions under the Financial Management Framework Agreement (FMFA) dated March 10, 2006 between the Bank and the United Nations. 41. Disbursement for Components 2 and 3 of the Project will be managed by the CBMP PIU and will follow the ongoing CBMP disbursement arrangements. All the payments will be done by the PIU through the DA. The committees of the smallholder groups will be responsible for preparation and implementation of approved sub projects. Respective individual agreements will be entered into with the grantees. The sub-grant eligibility criteria, the accountability of communities counterparts and implementation arrangements will be detailed in the Project Operations Manual (POM). 42. The proceeds of the grant will be disbursed over a three year period or less depending on the implementation speed. On project closure, a period of four (4) months (grace period) after the closing date, as agreed with the Bank, will be allowed to complete processing of disbursement for eligible expenditures incurred up to and until the closing date of the grant. The TCU has hired a Procurement Assistant and an Accountant, to facilitate the eventual transfer of the fiduciary responsibility to the Ministry of Agriculture once the CBMP project closes (in 2010). 50

59 Flow of Funds and Information Diagram World Bank Grant Account (Washington) W. A. Designated Account (Commercial Bank in Bissau) IFR PIU Suppliers & Consultants of goods and Services Smallholders Committees Financial Reports World Food Program WFP 51

60 Legends Payments to suppliers and consultants Transfers of Funds Direct Payments Transmission of IFR, Withdrawal Applications or Financial Report Allocation of Grant Proceeds 43. The table below sets out the expenditure components to be financed out of the Grant proceeds and the percentage to be financed. The allocations for each expenditure component are the following: Table A4.3 Summary of the Project Cost by Expenditure Category and percentages to be financed in Euro Project Components Fiscal Year EUFRF Total Percentage to be financed 5 FY 10 FY11 Component 1- Support to the Most Vulnerable Population 1,536, ,697 2,050, (1) Direct Operation Costs for School Feeding Program 405, , , (2) Direct Operation Costs for Food For Work Program 1,030, ,613 1,266,613 (3) Indirect Support Costs to WFP 100,506 33, ,112 Component 2 Support for Increasing Food Production 170, , ,000 Goods, works, consultants services, Subgrants under Sub-component , ,000 Goods, consulting under component , , ,000 Component 3 Project Coordination Monitoring and evaluation 200,150 89, ,000 Goods, consultant s services 160,000 20, ,000 Operating costs 40,150 69, ,000 Total Project Cost 1,906, ,547 2,870, % of the amount of the subgrant disbursed It is understood that (i) in the case of Component 1, WFP is exempt from taxes levied by, or in the territory of, Guinea-Bissau on or in respect of Direct Operating Costs, or on their importation, manufacture, procurement or supply, and (ii) in the case of Components 2 and 3, the percentages set forth in the table have been adjusted as required to ensure that the proceeds of the grant are not withdrawn to pay for taxes. 52

61 Disbursement Methods 44. Disbursements will be made according to the expenditure categories and percentages agreed in the Grant Agreement. Component 1 will be implemented by WFP, and WFP is exempt from taxes levied by, or in the territory of, Guinea-Bissau pursuant to an Agreement Principles Accord dated December 1, 2003 between the Republic of Guinea-Bissau and WFP. Component 2 and 3 will be implemented by the MoARD and since the EC does not allow the financing of taxes, the disbursement percentages for Components 2 and 3 have been set at 85 percent to take into account the 15 percent tax on all local goods and services-imposto Geral de Venda (IGV). In order to address the Project s financial capacity constraints which may arise in connection with the payment of such taxes, the Government is contemplating the establishment of a special system whereby special treasury checks will be issued from time to time in an amount sufficient to cover any taxes imposed in connection with eligible expenditures. This would thus enable the Project to pay the supplier/contractor/consultant the applicable taxes without having to take cash out and project funds can be used entirely on project-related activities. 45. The Project will use the Reimbursement, Advance, and Direct Payment disbursement methods. Components 2 and 3 will use Transaction-based disbursement procedures (SOE). As mentioned above, the CBMP PIU has the capacity to produce acceptable IFRs. Use of the Report-based disbursement procedures will be considered at the appropriate time, when the Project s FM system is able to effectively produce the IFRs. Withdrawal applications will be submitted on a regular monthly basis. All replenishment or reimbursement applications will be fully documented except for contracts under the prior review threshold. SOE documentation will be retained at the CBMP PIU office for review by Bank staff and auditors. 46. Matching Grant- Beneficiary communities will follow procurement and disbursement procedures agreed upon between the Bank and the GoGB and laid out in the POM and in the project administrative and accounting manual. The Smallholder Committees will take responsibility for all financial management regarding the communities counterparts and will report to the PIU. The Smallholder Committees members will be trained in simple accounting and financial management procedures. A training module for community-based financing will be developed by the financial team of the PIU and will be part of the manuals mentioned above. Designated Account (DA) 47. A Separate DA in CFAF will be opened in a commercial Bank acceptable to IDA in Bissau. This Account will be managed by the MoARD, and the Treasury Department. However the PIU at CBMP will be responsible for issuing the checks and collect all the information regarding this account. The DA will be used for all payments (national and decentralized level) for the implementation of Components 2 and 3 as indicated in the specific terms and conditions of the grant agreement. Transaction-supporting documentation for SOE or IFR will be retained and kept in a safe place by the PIU which has the primary responsibility for maintaining all documentation. The Disbursement letter, which will form an integral part of the grant agreement, will provide details of the disbursement methods, required documentation, DA ceiling and minimum application size. These will also be discussed and agreed upon during negotiation of the Agreement. 53

62 Supervision Plan 48. Supervision of the FM arrangements will be risk based. In this regard, in view of the overall FM residual risk rated for this project, the financial system will be reviewed and assessed at the national and community level and the supervision strategy will be two-site supervision and will be complemented by desk review of the quarterly IFRs submitted to the Bank at the end of each calendar quarter and a sample physical verification progress. In addition, the FMS will annually also review the audited project annual financial statements and the auditor s report and management letter thereon. Conclusion 49. The FM capacity in the CBMP PIU has been assessed and under the condition that the action plan (see paragraph 16 above) is implemented, the capacity is adequate to easily accommodate the additional responsibilities arising from the implementation of the proposed project. 54

63 Annex 5: Procurement Arrangements GUINEA BISSAU: Emergency Food Security Support Project A. General 1. With the exception of Component 1 which will follow WFP procurement procedures, procurement for Components 2 and 3 of the proposed project would be carried out in accordance with the (i) World Bank s "Guidelines: Procurement Under IBRD Loans and IDA Credits" dated May 2004 and revised on October 2006 (the Procurement Guidelines); (ii) "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" dated May 2004 and revised on October 2006 (the Consultants Guidelines); (iii) Requirements of OP 8.00 for Rapid Response to Crises and Emergencies; and (iv) the provisions stipulated in the Legal Agreement. The various items under different expenditure categories are described in general below. For each contract to be financed by the Grant, the different procurement methods or consultant selection methods, the need for pre-qualification, estimated costs, prior review requirements, and time frame are agreed between the Recipient and the Bank and reflected in the Procurement Plan. The Procurement Plan will be updated at least annually, or as required, to reflect the actual project implementation needs and improvements in institutional capacity. B. Country procurement system: General procurement environment in the country 2. There is currently a national procurement code in the Republic of Guinea-Bissau which has been tested in five line Ministries; it was agreed to extend its application to additional key line ministries and train the main users during a short period before its generalization. But this action has not been completed because there were no means to do it and in addition to this there was a political instability in country at the same period which contributed to its poor dissemination. The procurement code has not been updated in line with WAEMU s directives and has some limitations, some of which are discussed under the procurement methods section below. No Country Procurement Assessment Report (CPAR) has been conducted recently in the country; a PEMFAR exercise has been conducted in FY09-10, and the report is under finalization. C. Procurement methods to be used for project implementation 3. In the implementation of Component 1 WFP will use its own procurement procedures. The WFP procurement procedures will be applicable in place of the Bank procurement and Consultant Guidelines and the Bank will not exercise its regular procurement oversight through post and prior review. It is worth noting that the Bank will conduct intensified supervision of the outcomes and results of the Project. In addition, the grant agreement between the Bank and WFP will contain alternative provisions to the Bank standard clauses regarding audit, fraud and corruption consistent with the provisions used in similar legal documents between the Bank and WFP for operations of similar scope and nature. 4. Procurement of works and goods under components 2 and 3 In response to the new Framework for Rapid Response to Crises and Emergencies captured in OP 8.00, and to facilitate project implementation and quick delivery of results, no objections will be given, where appropriate, to the application of the following: Using rapid procurement methods 55

64 (Fast track LIB, direct contracting or simple shopping) for the procurement of services of qualified UN agencies/programs and/or suppliers (for goods) and civil works contractors already mobilized and working in emergency areas (for works). Also using NCB with provisions and streamlined procedures acceptable to the Bank. NCB will follow in general the procurement method described in the Procurement Code of Guinea-Bissau, as the "open competitive bidding" method (reference to the provision 12 of the procurement Code, which mentions this method as "Concurso Publico Aberto"). 5. With reference to the code, some limitations are not acceptable to the Bank. These are, among others: the decision that the Code do not apply to small contracts defined as those under US$11,300 (equivalent to CFA 5 million at the rate of 1 US$ for CFA 440) for goods and services (services are generally consulting services), and US$22,600 (equivalent to CFA 10 million) for works (Provision 8.1 of the Code); the absence of review of those small contracts by DGCP (Direcçao Geral dos Concursos Publicos - General Directorate for Public Procurement) which is the procurement control body in Guinea-Bissau (Provision 9 of the code); the use of domestic preference without any indication of a possible limitation (Provision 11 of the code); the possible restriction of the competition process in reference to the provision 25 of the Code which indicates that bidders must satisfy the fiscal and parafiscal obligations of the country; the absence of a clear obligation that the award criteria must be listed among the minimum information required to be inserted in the bidding document (Provision 20 of the code); there is no clear definition of the contract award criteria (Provision 33.1 of the code mentions only that the contract will be awarded to the bidder who offers the best bid ("melhor proposta" as mentioned in Portuguese)); the absence of indications on the obligation to assess the bidder's qualification prior to the contract award (Provision 33.1 of the code); the minimum time frame for bid submission is very low (Provision 27 of the code indicates that minimum time frame is 15 days); the possibility for the contracting authority to request that bids be presented in two internal envelopes while the Code indicates no distinction between works/goods and consulting services (Provision 30.7 of the code). 6. With regard to those provisions, in order that the above referred method be acceptable to IDA to be used for NCB, the following special requirements will be taken into account : (i) three weeks will be provided for preparation and submission of bids, after the issuance of the Invitation for Bids or availability of the bidding documents, whichever is later; (ii) for all procurement of goods and works, the SBD and bidding documents if any, acceptable to the Bank will be used and modified in order to meet the exceptions authorized under NCB; (iii) bids will be advertised in national newspapers with wide circulation; (iv) bids will be presented and submitted only in one internal envelope (no system with two envelopes will be used); (v) bid evaluation and bidder qualifications criteria will be clearly specified in the bidding documents; (vi) no preference margin will be granted to domestic bidders; (vii) eligible firms, including foreign firms, will not be excluded from the competition; (viii) the procedures will include the publication of the results of evaluation and of the award of the contract, and provisions for bidders to protest; (ix) the project implementation agency will work with Borrower's relevant authority in order to require that procurement audit will be included in the terms of reference of financial audits of the Project; and (x) even though the Code doesn't apply to small contracts, the procedures will require that for such contracts, a competitive method be used (reference to other methods described in the paragraphs 7 and 8 of this annex. In addition, any other adjustment will be taken into account when the Bank determines during the project execution as necessary in order to assure economy, efficiency, transparency, and broad consistency with the provision included in the Section I of the Guidelines, will be amended. 56

65 7. Procurement of Works: Works procured under this project would mainly include the small storage at village level, rehabilitation of degraded land to restore land productivity and support for small scale water structures. Since these works are widely spread in different regions of the country and of small quantities and amount (less than the equivalent value of US$50,000) per region, the procurement will be shopping in compliance with clauses 3.1 and 3.5 of the Procurement Guidelines. In case of higher value, NCB procedures as described in paragraph 6 of this annex will be used for contracts up to an estimated cost of US$250,000. If eventually the estimate cost is equal or above US$200,000, ICB will be used. 8..Procurement of Goods: Goods procured under this project would include supply of agricultural equipment, vehicles, motor cycles, seeds, commodities fertilizers, pesticides, etc. Some of these goods will be grouped in bid packages estimated to cost at least US$150,000 equivalent per contract and will be procured under International Competitive Bidding (ICB) procedures. Contracts estimated to cost less than US$150,000 equivalent for goods available locally would be procured under NCB procedures as describe above. Small articles and office supplies as well as small equipment and furniture available locally and whose estimated cost is less than US$50,000 may be awarded through Shopping in compliance with clauses 3.1 and 3.5 of the Procurement Guidelines." 9. Procurement of non-consulting services under Components 2 and 3: This will include non-consulting services related to workshops and capacity building for staff in the coordination unit or the local communities and their representatives; additionally, it will include some operating costs (transport, insurance, maintenance, etc.), other expenditures for workshops if any, and the Ministries of Public Works and Transport staff visits in other SSATP country members. The related contracts may be procurement either through the shopping method in compliance with clauses 3.1 and 3.5 of the Procurement Guidelines, or as it should be detailed in the Project s Operations Manual. 10. Consulting services and capacity building program for this project. Components 2 and 3 will include capacity support to affected small-scale farmers and the TCU (including agronomic extension officers, irrigation engineers and procurement specialists) and audit of the Project. For consulting services, Accelerated and Streamlined Procedures may apply to improve the flexibility and speediness. The use of a pool of experts, or a list of preselected consulting firms and/or individuals may be used. Firms already working in the area and which have a proven track record in similar assignments may be the most suitable; selection of consulting firms through Consultants Qualification Selection (CQS) method for contracting firms already working in the area and which have a proven track record for the provision of technical assistance. The selection of Consultants will also be done through the following methods: (a) Quality and Cost Based Selection for firms (QCBS); (b) selection based on the Consultant's Qualification (CQS); (c) least cost selection method for selection of auditors or consultant assigned for the supervision of works; (d) Sole-sourcing (singlesourcing) (SSS) of consulting firms may be used, where it presents a clear advantage over competition, with prior agreement of IDA, for services in accordance with the paragraphs 3.10 to 3.12 of the Guidelines for selecting consultant services; and (e) Individual Consultant (IC) who will be selected in accordance with paragraph 5.1 to 5.4 of the Consultant Guidelines. 11. Short lists of consultants for services estimated to cost less than US$75,000 equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines whenever a short list of at least six qualified and experienced firms can be composed. 57

66 12. The Standard Request for Proposal (RFP) and the Sample Form of Evaluation Report for the Consultant, as developed by the Bank, will be used for appointment of consultants. Simplified contracts will be used for short-term assignments, i.e. not exceeding six months, carried out by firms or individual consultants. Type of procurement documents to be used under Components 2 and The standard bidding documents as published by the Bank, including the guide for the evaluation of bids, will be used for all procurement under ICB and NCB (after any relevant modification and adaptation for NCB procedures as described earlier), and the standard request for proposals as published by the Bank, including the guide for the evaluation of proposals will be used for the selection of consultants. The language of the documents and contracts will be as follows: ICB for goods Bidding documents are drafted in French with Portuguese translation if necessary; bids can be submitted in French or Portuguese and the contracts for ICB to be signed in the same language as that of the bid, i.e. either French (with translation into Portuguese if desired) or in Portuguese (with translation into French for IDA), according to paragraph 2.15 of the Guidelines. NCB and Shopping The documents may be prepared only in Portuguese, according to paragraph 3.4 of the Guidelines. Consultants Request for proposals in French, with Portuguese translation; consultants can submit their proposals in French or Portuguese; contract to be signed in the same language as that of the proposal, that is either French (with translation into Portuguese if desired) or Portuguese (with translation into French for IDA), according to paragraphs 1.20 and 1.21 of the Consultants Guidelines. 14. Operating Costs: Operating costs financed by the Project are incremental expenses, including office supplies, vehicle operation and maintenance, maintenance of equipment, communication costs, rental expenses, utilities expenses, consumable, transport and accommodation, per diem, supervision costs and salaries of eligible consultants, provided that these salaries are eligible to the World Bank financing. They will be procured using the implementing unit's administrative procedures, which were detailed in the project administrative and financial manuals, reviewed and found acceptable to the Bank. 15. Both (the FPCR-funded and EUFRF-funded operations) have the same implementation arrangements and the implementation period overlaps. The FPCR-funded has an implementation period of 3 years (September 2008 to September 2011) and the EUFRF funded the implementation period of 18 months (March 1, 2010 to August 31, 2011). The vehicles and most of the equipment needed for the Project will be purchased under the FPCRfunded support while the operations and maintenance will be covered by the EUFRF. Under project coordination, the proposed EUFRF-funded project will also support the salaries of eligible consultants at the TCU for 12 months. Under the FPCR project the level of salaries was understated relative to market prices, and some positions such as safeguard and communications specialists have been changed to fulltime positions as opposed to short term positions in the FPCR. The payment of 12 months salaries of consultants at the TCU using EUFRF resources will therefore compensate for the differences. Others: 16. All procurement process and related contracts below Bank prior review threshold will be reviewed by DGCP (Direction Générale du Concours Public) to ensure the rules are respected. 58

67 D. Assessment of the Agency s Capacity to Implement Procurement Institutional Arrangement for Procurement 17. Components 2 and 3 of the Project will be implemented by the Department of Rural Engineering within the MoARD. A small coordination team headed by a coordinator will be established within this directorate and charged with day to day management of the Project. Procurement activities will be handled by the CBMP PIU. The procurement unit of this PIU is already handling the procurement activities under the ongoing Emergency Food Security Support Project financed under a TF administrated by the World Bank. The implementation and the follow up of all procurement activities to ensure timely response will be done in close collaboration with the MoARD / Department of Rural Engineering. 18. In addition to this, a procurement assistant who has adequate qualification and experience will be recruited on a competitive basis and positioned within the Department of Rural Engineering. His/her role will consist in facilitating the work with the Procurement Officer in CBMP PIU and supporting the Department on procurement issues which are directly related to producers needs. 19. The Procurement Specialist will: (a) prepare and update the procurement plan for the Project; (b) monitor the progress of procurement; (c) assist the coordinator in the preparation of bidding documents and advertisements for goods and works contracts and request for proposals for consulting assignments; and (d) advise the contract committee members on bid opening and evaluation processes. The Procurement Specialist will also advise the implementing agencies on contract management issues if necessary. 20. In his/her assignment, the Procurement Assistant will focus his/her role in (i) collecting and treating technical information useful for procurement; (ii) supporting the regional representative of the MoARD on activities related to the local implementation of the program; and (iii) assisting the Department of Rural Engineering in the follow up of procurement activities so as to timely identify delays on the process and address them. At the closing of the CBMP, the Procurement Assistant will continue to support the food crisis emergency response program without any interruption. Similarly, the Procurement Specialist will continue in handling his procurement assignment. 21. In the implementation of Component 1, the WFP procurement procedures will be applicable in place of the Bank Procurement and Consultant Guidelines and the Bank will not exercise its regular procurement oversight through post and prior review. It is worth noting that the Bank will conduct intensified supervision of the outcome and results of the Project. In addition, the grant agreement between the Bank and WFP will contain alternative provisions to the Bank standard clauses regarding audit, fraud and corruption consistent with provisions used in similar legal agreements between the Bank and WFP. 22. The procedures proposed to be carried out by community participation under Subcomponent 2.1 will be further detailed in an Operations Manual, acceptable to the Bank. Capacity of the Implementation Agency on Procurement 23. The capacity assessment of the unit responsible for procurement, i.e. the procurement unit of CBMP has been done by Cheick A. T. Traore, Sr Procurement Specialist on January and June 2009: this assessment is an update thanks to the knowledge of this unit which has been functioning since March The staff consists of a Procurement Officer and an Assistant; the Procurement Officer is improving and performing quite well and feels 59

68 comfortable in applying the procedures under the World Bank financing. He is qualified and has experience in fulfilling the procurement tasks which are required. E. Risks Assessment on Procurement and Mitigating Measures Main risks the mission has identified include: Lack of control from DGCP (Direcção General dos Concursos Públicos) due to insufficient means to visit the Project s central and regional procurement activities. Insufficient involvement of the beneficiaries in the procurement process conducted by the representative of the MoARD at the regional level. The procurement unit may be challenged by the procurement activities for smallholder sub-projects with both the number of sub-projects which may be high at certain periods, and the low capacity at the community level; again for capacity building at the benefit of communities, human resources for delivering adequate capacity building sessions in the procurement of rural smallholder sub-projects are scarce. There is not yet any procurement manual for the initial project. However, such a manual is essential for the launch of procurement processes for these subprojects. Political interference at the central and regional level which may be susceptible to corrupt practices. Measures to mitigate the said risks DGCP will establish a control program and a capacity building program including at community level, and will inform the executive agency on the implementation of these programs; the agency will finance the mission excluding payment of salaries. The representative of the MoARD at the regional level may collect the project beneficiaries needs and associate them in the final selection and the procurement process (technical specifications and contract award decision). The procurement will identify in advance a roster of qualified procurement specialists with experience in Community-Driven Development (CDD) projects, in order to prevent possible heavy workload, and to help building capacity in procurement at community level. The PIU should accelerate the elaboration of the manual which will include a procurement section detailing especially procurement at the level of the communities. DGCP will perform its control and ensure that the procurement decisions are consistent with the procedures and not affected by any political interferences. Technical audits will be conducted on an annual basis for the implementation of the micro-projects related components. In addition, the financial audit will include a requirement for the auditors to give their opinion on the procurement performance. 24. The project risk for procurement is substantial considering the low capacity at the CDD level; however, the environment at the country level is high, and this will rank the overall procurement risk in this case as high. F. Procurement Plan 25. The Borrower, at appraisal, developed a draft Procurement Plan for project implementation which provides the basis for the procurement methods. This plan has been discussed between the Recipient and the Bank on June 6, 2009 and it is available at the 60

69 Coordination Unit located in the Department of Rural Engineering (MoARD). It will be updated prior to the approval of the financing agreement, and this update will be disclosed as required. 26. It will be also available in the Project s database and in the Bank s external website. The Procurement Plan will be updated in agreement with the project team on an annual basis or as required to reflect the actual project implementation needs and improvements in institutional capacity. G. Frequency of Procurement Supervision 27. In addition to the prior review supervision to be carried out from Bank offices, the capacity assessment of the Implementing Agency has recommended at least two supervision missions to visit the field each year to carry out post review of procurement actions. 28. To ensure that adequate recommendations are provided to the TCU on procurement aspects, the post reviews of procurement will be done on at least 25 percent of contracts below prior review threshold. H. Details of the Procurement Arrangements Involving International Competition Goods, Works, and Non Consulting Services (a) List of contract packages identified: Ref. No Contract (Description) Office equipment Agricultural equipment and tools Fertilizers Pesticides Estimated Cost Procurement Method P-Q Domestic Preference (yes/no) Review by Bank (Prior / Post) Expected Bid-Opening Date 40,000 NCB NA NA Prior February ,000 NCB NA NA Post February ,000 Shopping NA NA Post March ,000 Shopping NA NA Post March 2010 Comments (b) ICB contracts for goods, works and non-consulting services estimated to cost respectively US$150,000, US$250,000 and US$50,000 and above per contract and all direct contracting will be subject to prior review by the Bank. Consulting Services (a) List of consulting assignments: Ref. No. Description of Assignment Estimated Cost Selection Method 61 Review by Bank (Prior / Post) Expected Proposals Submission Date Comments 1 Audit of the program 50,000 LCS Post June Project Coordinator IC Post Appointed

70 3 Agricultural Specialist 36,000 IC Post February 2010 Recruitment process underway 30,000 IC Post Hired 4 Communication Specialist 5 Monitoring and 30,000 IC Post November 2009 Hired Evaluation specialist 6 Safeguard Specialist 30,000 IC Post November 2009 Hired 7 Regional Project 72,000 IC Post February 2010 Only one hired coordinators (3) 8 Procurement 18,000 IC Post November 2009 Hired assistant 9 Accountant 18,000 IC Post November 2009 Hired 10 Communications 10,000 IC Post February 2010 strategy 11 ESMF and RAP 25,000 IC Post February, 2010 The work has initiated (b) Consultancy services for firms and individual consultants estimated to cost respectively the equivalent value of US$50,000 and US$100,000 and above per contract and all single source selection of consultants with firms and individuals will be subject to prior review by the Bank. 29. All TORs and short lists for firms and individual consultants will be subject to prior review by the Bank, regardless of the value of the contract. 30. Short lists of consultants for services estimated to cost less than US$75,000 equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines. 62

71 Annex 6: Implementation and Monitoring Arrangements GUINEA BISSAU: Emergency Food Security Support Project Implementation Arrangements 1. Component 1 will be implemented by WFP and Components 2 and 3 by a TCU under the Department of Rural Engineering at the MoARD. The TCU will be based in the Department of Rural Engineering which will be headed by a Project Coordinator and supported by essential staff, including regional coordinators in selected regions of the target area. 2. The TCU will be under the supervision of the Project Steering Committee (PSC) that will be chaired by the Minister of MoARD. The PSC will be responsible for approving the annual work program, approving the annual budget, providing necessary guidance to TCU, addressing any emerging problems that are likely to affect project implementation and finally to provide oversight during the implementation of this project. 3. The TCU will include a Project Coordinator, Agricultural Specialist, Communication Specialist, Safeguards Expert, and M&E Expert and other relevant positions to support project implementation. The Project will use the existing procurement and FM arrangements of the CBMP. The Project will finance the salaries of externally hired staff, limited technical assistance and training, office equipment and vehicles, project M&E costs and operational costs. 4. At the regional level, the MoARD will establish the Office of the Regional Coordinator. This office will have a maximum of three positions, including a Regional Coordinator, and will be with Regional Agriculture Offices, and will facilitate implementation and operational management of the Project at the regional level. The Project will finance the salaries of externally hired staff, and limited technical assistance and training, office equipment and vehicles, and operational costs. The Project will also finance the costs of periodic financial audits. 5. A Communication Strategy which will include visibility measures is expected to be completed soon which is designed to stimulate demand for project support and increase participation by existing as well as new smallholder groups. The design of the communication strategy has been contracted out to a specialized service provider. 6. Furthermore, the implementation arrangements and the project supervision will be designed to minimize elite capture and leakages. Measures to minimize elite capture include: effective supervision and monitoring to ensure that the benefits are going to the intended target group, representatives of CBO/NGOs and civil society are included as part of the approval committees, appointment of a technical auditor to review quality of service providers in the sub-projects as well as the management of funds by beneficiaries. Additional measures will include the establishment of low ceilings for sub-grants, and allocation of funds to groups, not to individuals. 63

72 Alternatives considered and reasons for rejection 7. The following alternatives were considered and rejected in the project design a. Implementation agency. There were three potential implementation alternatives as project implementation agency including: (i) linking the Project to the CBMP; (ii) WFP and (iii) MoARD. The first was rejected due to the risk of diluting the core emergency and access to food and production focus of the Project. The second was rejected due to risk of poor involvement of government during implementation; and the third was rejected due to poor capacity of the MoARD to immediately address emergency issues. b. Focus more on emergency food supply. In a post-conflict situation, investment in smallholder farmer groups is essential to ensure food production, and social stability in rural areas. Financial Management, Procurement, and Disbursement Arrangements for Components 2 and 3 8. Given the weak institutional capacity the MoARD, the procurement and FM for Components 2 and 3 of the Project will be executed by the PIU of the CBMP. 9. The FM and disbursement arrangements for this project will follow the arrangements agreed for the ongoing CBMP. These include: budgeting; accounting; internal control; flow of funds; financial reporting; and external audit. The PIU has succeeded in recording, processing, preparing and submitting quarterly interim un-audited financial reports (IFRs). It has also succeeded in timely submission of audit reports. During the mid-term review in February 2008, some FM issues (IFR not acceptable, weakness in the monitoring of budget and weakness in the internal control) were raised and an action plan proposed to strengthen the FM system. The Bank s FM team will continue to intensify its supervision of the projects in the portfolio, including the proposed project and provide FM implementation support to ensure that established FM procedures are strictly adhered to and where necessary strengthened. As of June 2009, the CBMP PIU complied with fiduciary requirements and continued to record transactions properly. Also, it has successfully submitted withdrawal applications in the format required by the Bank. 10. Similarly to FM, procurement activities for Components 2 and 3 will be handled by the CBMP PIU and follow, in particular, the arrangements and procedures established by the Local Initiatives Funds, FIAL. The procurement activities will follow a specific procurement plan prepared by the Borrower and agreed with the Bank during the project preparation. The implementation and the follow up of all procurement activities to ensure timely response will be done in close collaboration with the MoARD / Department of Rural Engineering. A Procurement Assistant, with adequate qualification and experience, has been recruited on a competitive basis and positioned within the Department of Rural Engineering. His will be to facilitate the procurement work with the Procurement Officer in CBMP PIU and supporting the Department on procurement issues directly related to producers needs. He is also expected to continue with the procurement function after the CBMP closes in March

73 Environmental and Social Safeguards 11. The activities supported by the Project are expected to have minimal to amenable environmental and social implications. However, because of the likely use of pesticides, and the rehabilitation of 300 km of feeder roads, the Project has been rated as Category B, and four safeguard policies are triggered: Environmental Assessment (OP/BP 4.01), Natural Habitats (OP/BP 4.04), Pest Management (OP/BP 4.09) and Involuntary Resettlement (OP/BP 4.12). The Environmental and Social Management Framework (ESMF) under preparation will formulate guidelines and procedures for environmental and social screening, whereas the abbreviated Resettlement Action Plan (RAP) will explain the proper way of handling any potential land tenure and resettlement issues. Since this operation is intended to provide parallel financing to the existing FPCR EFSSP, the same ESMF will be used, and will be supplemented by an abbreviated RAP in connection with the rehabilitation of 300 km of feeder roads. The ESMF will also provide guidelines for both the use and management of pesticides, as well as on the potential disturbance of natural habitats. In addition, the ESMF and abbreviated RAP will discuss adequate institutional arrangements for timely implementation and monitoring of safeguard measures, along with any technical capacity strengthening and awareness raising measures deemed necessary for relevant stakeholders groups. Arrangements for Results Monitoring 12. Results monitoring will assist project management in making implementation decisions and generate lessons to effectively implement the Project. Result monitoring will include two aspects: (i) Impact assessment surveys, focussing primarily on the degree of achievement of overall Project Development Objective; and (ii) Ongoing management information system (MIS) for assessment of intermediate results of project components. 13. A detailed description of project s output and activities monitoring procedures will be developed in the Project Implementation Operations Manual. Impact Assessment Surveys 14. Impact assessment surveys aim at collecting information about project s contribution to the enhancement of participant smallholder farmers agricultural production and income as well as appraising how this is distributed by gender, social groups and geographical area. 15. In addition to the household surveys, a direct appraisal of income generated by participation in project activities will be carried out by collecting annual official accounting data (e.g. revenue, capitalization) of a sample of farmer associations and cooperatives. Perception of change in income and capitalization will also be explored in further detail through in-depth interviews or focus groups with project participants. 16. Triangulation among these sources (surveys, farmer association accounts and in-depth interviews/focus groups) is expected to enhance the validity of the overall impact assessment findings. 65

74 Periodic Management Information System 17. A strong project management information system is required to deal with the geographical dispersion of this project. Beyond regular monitoring meetings, an annual internal evaluation and re-planning workshop among the TCU and its main institutional partners is recommended to assess progress made by the different project components and draft the work plan for the forthcoming year. Organizational set up of the Result Monitoring System 18. To manage the above data collection, processing and use procedures, an M&E unit will be established in the national level TCU, with a full-time M&E Specialist, responsible for (i) overseeing data collection; (ii) storing, consolidating and analyzing data, and providing feedback at all levels (project manager, collaborating public institutions, private outsourcers, farmers associations etc.); (iii) providing training on specific M&E tasks to colleagues and partners; and (iv) facilitating project coordination self-assessment during yearly and mid-term evaluation workshops. 66

75 Annex 7: Project Preparation and Appraisal Team Members GUINEA BISSAU: Emergency Food Security Support Project Table A7.1: Project Processing Schedule Planned Revised Actual Pre-Appraisal June 2009, 2009 June 2009 Appraisal October 19, 2009 October 19, 2009 RRC October 26, 2009 October 26, 2009 Negotiations October 28, 2009 December 11, January 22, RVP approval November 6, 2009 February 22, 2010 Effectiveness December 1, 2009 March 11, 2010 Mid-term review August, 2010 Closing date August 31, 2011 Table A7.2: Bank staff and Consultants who worked on the Program included Name Title Unit Aniceto Bila Senior Operations Officer (Task Team Leader) AFTAR Anthony Molle Counsel LEGAF Carmen Pereira Liaison Officer AFCF1 Cheick Traore Senior Procurement Specialist AFTPC Cheikh A. T. Sagna Senior Social Scientist AFTCS Elisabeth Mekonnen Language Program Assistant AFTAR Jean Philipe Tre Senior Economist AFTAR Luisa Matsinhe Team Assistant AFMMZ Marie-Claudine Fundi Language Program Assistant AFTAR Mohinder Mudahar Economist, Consultant AFTAR Osval R. A. Romao Financial Management Specialist AFTFM Ronnie Hammad Senior Operations Officer AFTRL Sossena Tassew Office Manager AFTAR Wolfagang Chadab Senior Finance Officer CTRFC Yves Prévost Lead Environmental Specialist AFTEN 67

76 Annex 8: Country at a Glance GUINEA BISSAU: Emergency Food Security Support Project Sub- K ey D evelo pment Indicat ors Guinea- S aharan L ow B is s au Africa income (2008) P opulation, mid-year (millions ) ,296 S urface area (thous and s q. km) 36 24,242 21,846 P opulation growth (%) Urban population (% of total population) Age distribution, 2007 Male Female GNI (Atlas method, US $ billions ) GNI per capita (Atlas method, US $) GNI per capita (P P P, international $) 470 1,869 1,489 GDP growth (%) GDP per capita growth (%) percent of total population (most recent estimate, ) P overty headcount ratio at $1.25 a day (P P P, %) P overty headcount ratio at $2.00 a day (P P P, %) Life expectancy at birth (years ) Infant mortality (per 1,000 live births ) Child malnutrition (% of children under 5) Adult literacy, male (% of ages 15 and older) Adult literacy, female (% of ages 15 and older) Gros s primary enrollment, male (% of age group) Gros s primary enrollment, female (% of age group) Under-5 mortality rate (per 1,000) Access to an improved water source (% of population) Acces s to improved s anitation facilities (% of population) Guinea-Bissau Sub-Saharan Africa Net Aid F lows a (US $ millions ) Net ODA and official aid T op 3 donors (in 2007): European Commis s ion P or tugal Spain Aid (% of GNI) Aid per capita (US $) L o ng-t erm E conomic T rends Cons umer prices (annual % change) GDP implicit deflator (annual % change) Growth of GDP and GDP per capita (%) GDP GDP per capita E xchange rate (annual average, local per US $) T erms of trade index (2000 = 100) (average annual growth %) P opulation, mid-year (millions ) GDP (US $ millions ) 111 2, (% of GDP ) Agriculture Indus try Manufacturing S ervices Household final consumption expenditure General gov t final consumption expenditure Gros s capital formation Exports of goods and services Imports of goods and s ervices Gross savings Note: Figures in italics are for years other than those specified data are preliminary... indicates data are not available. a. Aid data are for Development Economics, Development Data Group (DECDG). 68

77 Guinea-Bissau B alance o f P ayment s and T rade (US $ millions ) T otal merchandis e exports (fob) T otal merchandis e imports (cif) Net trade in goods and services Current account balance as a % of GDP Workers remittances and compens ation of employees (receipts ) 2 29 R es erves, including gold Governance indicators, 2000 and 2007 Voice and accountability Political stability Regulatory quality Rule of law Control of corruption Cent ral Government F inance Country s percentile rank (0-100) higher values imply better ratings 2000 (% of GDP ) Current revenue (including grants) Source: Kaufmann-Kraay-Mastruzzi, World Bank T ax revenue Current expenditure T echnology and Infras tructure Overall s urplus /deficit P aved roads (% of total) Highes t marginal tax rate (%) F ixed line and mobile phone Individual.... s ubs cribers (per 100 people) 1 18 Corporate.... High technology exports (% of manufactured exports ).... External Debt and R esource F lows E nvironment (US $ millions ) T otal debt outs tanding and dis burs ed 947 1,157 Agricultural land (% of land area) T otal debt service 5 17 F orest area (% of land area) Debt relief (HIP C, MDR I) Nationally protected areas (% of land area) T otal debt (% of GDP ) Freshwater resources per capita (cu. meters ) 10,990 9,441 T otal debt service (% of exports ) Freshwater withdrawal (billion cubic meters ) Foreign direct investment (net inflows ).... CO2 emissions per capita (mt) P ortfolio equity (net inflows ).... GDP per unit of energy use (2005 PPP $ per kg of oil equivalent).... Composition of total external debt, 2007 Energy us e per capita (kg of oil equivalent).... Short-term, 142 Private, 0 IBRD, 0 IDA, 315 World B ank Group port f o lio Bilateral, 499 IMF, 5 Other multilateral, 197 (US$ millions ) IB R D T otal debt outs tanding and dis burs ed Dis burs ements P rincipal repayments Interes t payments US$ millions IDA T otal debt outs tanding and dis burs ed Dis burs ements P rivate S ector Development T otal debt s ervice 4 8 T ime required to s tart a bus ines s (days ) 233 IF C (fis cal year) Cos t to s tart a bus ines s (% of GNI per capita) T otal dis burs ed and outs tanding portfolio 1 0 T ime required to register property (days) 211 of which IF C own account 1 0 Dis burs ements for IF C own account 0 0 R anked as a major cons traint to bus ines s P ortfolio s ales, prepayments and (% of managers s urveyed who agreed) repayments for IF C own account 0 0 E lectricity Acces s to/cos t of financing MIGA Gros s expos ure 27 Stock market capitalization (% of GDP ).... New guarantees 27 B ank capital to as s et ratio (%).... Note: F igures in italics are for years other than thos e specified data are preliminary. 12/28/09.. indicates data are not available. indicates obs ervation is not applicable. Development Economics, Development Data Group (DECDG). 69

78 Millennium Development Goals Guinea-Bissau With selected targets to achieve between 1990 and 2015 (es timate clos es t to date s hown, +/- 2 years ) Guinea-B iss au Goal 1: halve the rates f or ext reme povert y and malnut rition Poverty headcount ratio at $1.25 a day (PPP, % of population) P overty headcount ratio at national poverty line (% of population) S hare of income or cons umption to the poores t qunitile (%) P revalence of malnutrition (% of children under 5) Goal 2: ens ure that children are able to complete primary s chooling Primary school enrollment (net, %) Primary completion rate (% of relevant age group) S econdary s chool enrollment (gros s, %) Youth literacy rate (% of people ages 15-24) Goal 3: eliminate gender dis parity in education and empower women R atio of girls to boys in primary and s econdary education (%) Women employed in the nonagricultural s ector (% of nonagricultural employment) P roportion of s eats held by women in national parliament (%) Goal 4: reduce under-5 mortality by two-thirds Under-5 mortality rate (per 1,000) Infant mortality rate (per 1,000 live births ) Meas les immunization (proportion of one-year olds immunized, %) Goal 5: reduce maternal mortality by three-fourths Maternal mortality ratio (modeled es timate, per 100,000 live births ) ,100 B irths attended by s killed health s taff (% of total) Contraceptive prevalence (% of women ages 15-49) Goal 6: halt and begin t o revers e t he s pr ead o f H IV/A ID S and o t her majo r dis eas es P revalence of HIV (% of population ages 15-49) Incidence of tuberculos is (per 100,000 people) T uberculos is cas es detected under DOT S (%) Goal 7: halve t he pro po r t io n o f peo ple wit ho ut s us t ainable acces s t o bas ic needs Acces s to an improved water s ource (% of population) Acces s to improved s anitation facilities (% of population) Forest area (% of total land area) Nationally protected areas (% of total land area) CO2 emissions (metric tons per capita) GDP per unit of energy use (constant 2005 PPP $ per kg of oil equivalent) Goal 8: develo p a glo bal par t ners hip f o r develo pment T elephone mainlines (per 100 people) Mobile phone subscribers (per 100 people) Internet users (per 100 people) P ers onal computers (per 100 people) Education indicators (%) 75 Measles immunization (% of 1-year olds) 100 ICT indicators (per 100 people) Primary net enrollment ratio Ratio of girls to boys in primary & secondary education Guinea-Bissau Sub-Saharan Africa Fixed + mobile subscribers Internet users Note: F igures in italics are for years other than thos e s pecified... indicates data are not available. 12/28/09 Development Economics, Development Data Group (DECDG). 70

79 Annex 9: Map GUINEA BISSAU: Emergency Food Security Support Project 71