Document of The World Bank FOR OFFICIAL USE ONLY FOOD PRICE CRISIS RESPONSE TRUST FUND EMERGENCY PROJECT PAPER ON A PROPOSED GRANT

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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 FOOD PRICE CRISIS RESPONSE TRUST FUND EMERGENCY PROJECT PAPER ON A PROPOSED GRANT Report No NE UNDER THE GLOBAL FOOD CRISIS RESPONSE PROGRAM IN THE AMOUNT OF US$7.0 MILLION TO THE REPUBLIC OF NIGER FOR A PROPOSED EMERGENCY FOOD SECURITY SUPPORT PROJECT Agriculture and Rural Development Sustainable Development Department Country Department AFCFZ Africa Region August 1,2008 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 July 17,2008) Currency Unit = Franc CFA 1US$ = 410CFAF FISCAL YEAR January 1 to December 3 1 ABBREVIATIONS AND ACRONYMS DPL FA0 FCD FCPMF FPCR FUCOPRI FPCR TF FSA GFRP GDP I GNI Developmental Policy Lending Food and Agricultural Organization Fonds Commun des Donateurs (Food Crisis Donor Basket Fund) Food Crises Prevention and Management Framework Food Price Crisis Response Fidiration des Unions Coopiratives des Producteurs de Riz (Rice Producers Apex I Organization) I Food Price Crisis ResDonse Trust Fund Food Security Fund Global Food Crisis Response Program Gross Domestic Product I Gross National Income I I I ii

3 FOR OFFICIAL USE ONLY UEMOA UNDP WFP Union Economique et Monktaire Ouest Africaine (West African Economic and Monetary Union) United Nations Development Program World Food Program r Vice President: Obiageli Katryn Ezekwesili Country Director: Madani M. Tall Sector Director: Inger Andersen Sector Manager: Karen Brooks Task Team Leader El Had' Adama Toure This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization....

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5 REPUBLIC OF NIGER Emergency Food Security Support Project (Food Price Crisis Response Trust Fund) CONTENTS Emergency Project Paper (EPP) Data Sheet... v A. Introduction... 1 B. Country Context. Recovery Strategy and Rationale for Emergency Project... 1 C. Bank Response and Strategy... 4 D. Appraisal of Project Activities, Benefits, and Risks... 7 E. Implementation Arrangements and Financing Plan F. Risks G. Terms and Conditions Annexes Annex 1. Annex 2. Annex 3. Annex 4. Annex 5. Annex 6. Annex 7. Annex 8. Detailed Description of Project Components Results Framework and Monitoring Arrangements Summary of Estimated Project Costs Financial Management and Disbursement Arrangements Procurement Arrangements Implementation and Monitoring Arrangements Project Preparation and Appraisal Team Members Country at Glance iv

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7 Date: August 1,2008 Country Director: Madani M. Tall Sector Manager: Karen Mcconnell Brooks Lending instrument: Emergency Recovery Loan Project ID (s): P Team Leader: El Hadj Adama Toure Sectors: Agriculture, Social Development Themes: Agricultural Productivity, Food security I Environmental screening category: B Type of Operation: Emergency Project New Operation [ X ] Addit-ionaiFinancing [ ] Existing Financing (restructuring) [ ] Financing type: Loan [ ] Credit [ ] IDA Grant [ ] Other [ X ] Project ID(s): P Proposed terms: 100 percent grant basis Expected effectiveness date: August 15, 2008 Recipient: Government of Niger Total Amount: US$7 million Expected implementation period: 18 months Expected closing date: December 3 1, 2009 Responsible agency: Food Crisis Coordination Unit (CCA) and Centrale d Approvisionnement (CA) Borrower Total IBRD/IDA Trust Funds Others Total Total IBRD/IDA Trust Funds oo Does the emergency operation require any exceptions from Bank policies? Yes [I No [XI Have these been approved by Bank management? Yes11 No[ 1 Are there any critical risks rated substantial or high? Yes[X] No[] What safeguard policies are triggered, if any? Environmental Assessment Policy (OP 4.01) and Pest Management Policy (OP 4.09) Significant, non-standard conditions, if any: None V

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9 A. INTRODUCTION 1. The Government of Niger has requested assistance from the World Bank to help with its efforts to mitigate the impact of the crisis resulting from sharply rising food prices. This Project Paper presents the proposed support to be provided to Niger for an Emergency Food Security Support Project to be financed with a grant of US$7 million from the Food Price Crisis Response Trust Fund (FPCR TF). 2. The proposed grant will help finance the costs associated with urgent procurement and distribution of fertilizer for irrigated rice production. Irrigated rice is the only crop that can respond effectively to soil fertilization at this period of the cropping season and which can rapidly increase food availability. The support will also benefit the Food Crisis Coordination Unit (CCA) in the Prime Minister s office, which is the permanent secretariat for the national Food Crisis Prevention and Management Framework (FCPMF), and other national bodies involved in the FCPMF, by providing technical assistance to strengthen monitoring of the food security situation and to prepare and implement social safety nets programs. Project preparation and implementation are coordinated with the Joint Government-Donor Food Crisis Committee (CRC) which oversees the CCA. Net sales revenues of fertilizers will be used to strengthen the social safety nets programs. B. COUNTRY CONTEXT, RECOVERY STRATEGY AND RATIONALE FOR PROPOSED BANK EMERGENCY PROJECT 3. Niger is a very poor country that faces many hardships and struggles with significant levels of poverty and household food insecurity.2 A Sahelian landlocked country, Niger is confronted by a harsh climate, with nearly 90 percent of the territory receiving less than 350 mm rainfall annually, resulting in recurrent natural disasters and high exposure to climate change. With a per capita Gross National Income (GNI) of US$260 and an estimated 62 percent of the population living below the poverty line, Niger is one of the lowest-ranked countries on the United Nations Human Development index. The incidence of poverty has remained constant since the early 1990s, with approximately 85 percent of the population living on less than US$2 per day and 65 percent living on less than US$1 per day. 4. Low agricultural productivity and uncontrolled population growth make the country seasonally and chronically food insecure. Only 10 percent of Niger s territory, or 120,000 km2, benefits from rain-fed agriculture. Agriculture in the rest of the country The proposed Grant is being undertaken under the Global Food Crisis Response Program (GFW) which was endorsed by the Board on May 29,2008, and will be financed out of the Food Price Crisis Response Trust Fund (FPCR TF). This section based on Food Security and Safety Nets Draft Report, June 12,2008, World Bank, and Niger Country Assistance Strategv, May 6,2008, World Bank and other sources 1

10 ~ June08 Average must be irrigated, though many farmers cannot afford to do so properly, leaving the country highly vulnerable to natural disasters (particularly drought). As a result, Niger remains highly dependent on subsistence crops, livestock systems and rain-fed agriculture, such as millet, sorghum, cowpeas, yams, manioc, and rice, which are cultivated along the Niger River and in low-lying areas bordering Nigeria. Meanwhile, in a context of declining rainfall and cyclical droughts, unsustainable land management practices abound, with communities overexploiting natural resources in order to maintain or increase their level of production to feed a rapidly growing population (at a rate of 3.3 percent a year). The result is soil depletion, loss of fertility, lower yields, and environmental degradation, which has progressively led to an environment-poverty nexus that contributes to increasing food insecurity and poverty. 5. Though the majority of households engage in some farming, almost all households are net purchasers of food. While over 60 percent of households rely in part on their own production to meet their consumption needs, 68 percent of households are net purchasers of staples such as millet and cowpeas. Drought also often results in increases in the prices of millet, sorghum and other staple foods of the population, and dramatic decreases in prices of livestock, contributing to food insecurity. 6. Supply and demand conditions in Nigeria, especially the northern regions, have a major influence on prices and availability of staple food crops in Niger. Covering an area of 923,000 km2 and with a population of over 130 million, Nigeria produces significant quantities of millet, sorghum and maize as compared with Niger and dominates the subregional supply of these cereals. Fluctuations in Nigeria s cereal supply and demand have important impacts on supply and prices in Niger. Table 1: Variation in Food Prices ( percent) 7. The rise in international oil and food prices, low cereal production in 2007 (June/MayOS Millet 18% 7% due to drought, and increased demand for Sorghum 18% 3% cereals and other agricultural products in Maize 51 % 31 % neighboring countries-namely Nigeria- Rice 18% 21 % contributed to a sharp increase in food Niebe 20% 23% prices in As of June 2008, and according to the joint donor-government earlier warning system put in place following the 2005 food crisis, about three million people are living in areas currently identified as vulnerable to soaring food prices, fiom which around one million people are under serious food insecurity, calling for urgent and relief measures to prevent another human disaster three years after the 2005 crisis. The Government Response 8. Reducing vulnerability and ensuring food and nutrition security is an overarching priority for the Government of Niger. Maintaining food security at the national and household level is an important priority for developing countries in general, both for the welfare of the poor and for political stability. In its 2003 Rural Development Strategy (RDS), as well as in the Accelerated Development and Poverty Reduction Strategy 2

11 (PRSP2), the Government has established the strategic vision, policies and institutional framework to address food security issues. The RDS includes a comprehensive action plan, adopted in 2006, which identifies various instruments to address food insecurity, including efforts to increase staple food crop production (often with an explicit goal of food self-sufficiency), market interventions, and a variety of safety nets programs, especially after emergencies. This includes a food crisis contingency plan to cope with drought episodes and a National Strategy to Support Vulnerable Population for increased food prices. 9. With the assistance of development partners, the country has also worked to improve its institutional and operational framework for food security, including by establishing three facilities jointly with donors, as part of the FCPMF, under the oversight and management of CCA: A Donor Basket Fund, A Food Security Fund and the National Food Security Stocks. In this context, food aid has served as an important resource for the Government and is considered to be integral to the provision of safety net interventions, especially emergency responses. 10. In the current context of rising food prices, the Government s contingency plan under the FCPMF has been to increase domestic rice stocks and to absorb the shock by taking fiscal measures to facilitate access to inputs and imported rice. In June 2008, the Parliament adopted a supplemental Budget Law which included tax exemption (excise and customs duties; VAT) on rice, wheat flour, edible oil, sugar, and milk, which led to a loss of tax revenues of CFAF 12.4 billion (about US$30 million), equivalent to 0.56 percent of GDP In addition, the Government has prepared a comprehensive food security national strategy, within the framework of CAADP3 and requested support from development partners to implement its program. Development partners are responding to the Government s request to support the national strategy, estimated to require $30 million in the base case scenario (assumes normal rainfall ahead of the next harvesting season), by replenishing the Donor Basket Fund. Many partners, including France, Italy, the US and EU have committed to assist. However, it is likely that funds will not flow in quickly enough to meet the most urgent needs of providing access to affordable inputs to support crop production. 12. It is worth noting that the Government-Donor Committee has been on alert since the beginning of the year and is meeting weekly to monitor and intervene to respond to the situation. In addition to the Government s commitment, through the Prime Minister, thirteen development partners have signed the FCPMF Agreement since 1998, namely The European Commission, WFP, FAO, UNDP, France, Switzerland, Italy and Germany. More have joined or have contributed to one or more of the Framework facilities after the 2005 food crisis, including the US and Spain. The proposed Grant provides an opportunity for the Bank to formally join this effort by becoming a signatory to the Afiica Union s Comprehensive African Agriculture Development Program under NEPAD. 3

12 FCPMF Agreement and becoming more active in directly supporting food security in Niger. 13. At this early stage of Niger s annual crop production cycle, the FPCR TF grant will provide critical support to farmers to increase food availability in the short term. By financing and distributing fertilizers at affordable price, the project will respond to an urgent need and will also alleviate the fiscal burden of subsidizing imported rice-if available at all, as many producer countries continue restricting rice exports. In addition, net revenues from the fertilizer operation will later help CCA to finance social safety nets programs, including replenishing the National Food Security Stocks at the end of the production cycle with local production (cereals and cowpeas), contributing to maintaining producer prices at reasonable levels at a time when farmers are forced to sell part of their production at very low prices to cope with cash constraints. The project will work with rice producers associations, cooperatives, National Irrigation Development office (ONAHA) and the Ministry of Agriculture to ensure distribution to target beneficiaries, largely producers located along the Niger River on the western to southwest border of Niger. Distribution and use of fertilizers will be monitored by these groups, as well as through reporting to the CCA and FPCMF and the project will use radio broadcasting and public meetings organized by ONAHA extension agents to raise awareness about the program as well as for monitoring. C. BANK RESPONSE: THE PROJECT Brief description of Bank s strategy of emergency support 14. The Bank s strategy for this emergency support to Niger is aligned with the Government s strategic approach and takes place in the context of the coordinated and joint donor framework. The response focuses on measures to address the short and medium to long term implication of the global food crisis for Niger, which is fully consistent with the Bank s Global Food Crisis Response Program (GFRP). 15. The objectives of the GFRP are to: (i) reduce the negative impact of high and volatile food prices on the lives of the poor in a timely way, (ii) support governments in the design of sustainable policies that mitigate the adverse impacts of high and more volatile food prices on poverty while minimizing the creation of long-term market distortions, and (iii) support broad-based growth in productivity and market participation in agriculture to ensure an adequate and sustainable food supply response. Interventions need to be rapid, include the poor and disadvantaged, and contribute to achieving sustainable longer-run food security The GFRP encompasses support for interventions in the following areas: (i) food price policy and market stabilization, (ii) social protection actions to ensure food access and minimize the nutritional impact of the crisis on the poor and vulnerable, (iii) Framework Document for Proposed Loans, Credits and Grants for a Global Food Crisis Response Program 4

13 enhancing domestic food production and marketing response, and (iv) implementation support, communications and monitoring and evaluation. 17. This support to Niger will focus primarily on areas (iii), by supporting domestic production of rice at a critical time, and (ii), by using a share of the revenues from the sale of fertilizer to strengthen Niger s social safety net mechanism. In parallel, the Bank s strategy for supporting agriculture and rural development in Niger includes longer-term investments in rural idfastructure, including irrigation and rural roads, financed through regular Bank mechanisms (IDA credits and grants), and also includes two new investment operations in FY09 to complement these efforts, including an Agro-pastoral Export Promotion and Irrigation Operation (PRODEX) and the second phase of the Community Action Program (CAP 2). Project Development Objectives and Summary Description of Component 18. The objective of the grant is to support the government efforts to mitigate the impact of food price crisis through: (a) increase of rice production with procurement and distribution of fertilizers to rice producers at affordable prices ; and (b) providing technical assistance to enhance the capacity of the Food Crisis Prevention and Management Framework s (FCPMF) coordination unit and executing agencies, for the management of the project and for improved monitoring of the country s food security. Component I: Procurement of Fertilizers (US6.5 million): The component will support costs associated with the urgent procurement of 4,000 metric tons of fertilizers (urea and di-ammonium phosphates) to be used on 10,000 ha of irrigated rice in the current cropping season starting in July 2008 and ending in December If delivery is delayed due to any reasonable reason, use of fertilizers may be reported for the upcoming counter-season starting in February 2009 and ending in June Fertilizer will be procured by the Ministry of Agriculture Development s Inputs Procurement Division (Centrale d Approvisionnement, CA) using agreed upon procedures under the National Food Crisis Prevention and Management Framework (FCPMF) in July and August Fertilizer will be delivered to rice producers at affordable price using CA s current subsidy policy (a 30 to 40 percent subsidy for fertilizer). The grant will support CA and CCA operating costs associated with the procurement and the distribution of fertilizers. Component 11: Support to the National Food Crisis Prevention and Management Framework (US$0.5 million): This component will (a) contribute to strengthening the CCA, as the permanent secretariat for the FCPMF, to manage the grant and monitor and evaluate the grant funded activities. Those activities include the monitoring of targeting eligible beneficiaries of fertilizers procured and distributed under the grant, and adequate information disclosure regarding the distribution process. The project will also support technical assistance under this component to CCA, CA and the Office of National Food Security Stocks (OfJice des Produits Vivriers du Niger, OPVN) and ONAHA;(b) ensure adequate monitoring of food security, including accurately and timely reporting on food prices across the country and along the borders with Nigeria; (c) support management of grain storage and early identification of population and areas at risk of starvation; (d) support the design of safety net programs to permanently tackle food insecurity affecting 5

14 20 percent of the population in Niger; and (e) ensure close advisory services to cooperatives and rice farmers during the two successive irrigation campaigns covered by the project. This would include providing basic instructions on proper use of fertilizers, as well as adequate quantities of application. Eligibility for Processing under OPBP Due to the emergency nature of the crisis, this project was prepared with great speed under OP 8.00, which provides the Bank s policy framework on Rapid Response to Crisis and Emergencies and enables the Bank to provide a rapid response in support of, inter alia, the following objective: establishing and/or preserving human, institutional, and/or social capital, including economic reintegration of vulnerable groups. OP 8.00 further provides that: In support of this objective, emergency operations may include activities forming part of the government s transitional social safety net programs, including cash payments, grant or micro-credit programs, and reintegration packages. 20. Consistent with the guiding principles of OP 8.00, the project will address major adverse economic and social impacts resulting from the hike in prices and consequent lack of access to food and cereals by enabling Niger to produce rice in the short term, ahead of the next harvesting cycle, and by contributing to the National Food Security Stocks. The Project has been designed and will be implemented in close coordination with other development partners, with financing channeled through a joint donor funding mechanism, 21. Other financing options that were considered by the government included additional financing to IDA operations, including the Agro-Pastoral Exports and Markets Development Project (PRODEX, under preparation) and CAP2, which was negotiated in early July However, these options were not considered adequate because the PRODEX will not be prepared in time to respond to the crisis (Board presentation is slated for early 2009) and the CAP 2 implementing agency does not have adequate capacity to rapidly implement a new emergency program as it is already launching the implementation of a new Avian Flu component in addition to the 2nd phase of the APL. Supplemental financing for a DPL that is under preparation was also considered but would not have provided the appropriate instrument for responding to government s main priority of procuring agricultural inputs. Consistency with Country Strategy 23. This operation is consistent with the CAS for Niger, discussed by the Board on May 29,2008, and will contribute to the two main pillars, which are: 1. Accelerating Sustained Growth that is Equitably Shared. Under this pillar, the Bank will increase support for policies and investments to promote rural growth, including for agro-pastoral products and exports and mining; strengthen economic 6

15 2. infrastructure services, including irrigation, transport, and municipal services; improve the business and investment climate; and strengthen regional integration; and Developing Human Capital through Equal Access to Quality Social Services. Under this pillar, the Bank will support social infrastructure, such as water and sanitation services, basic education, health services, including HIV/AIDS prevention and treatment, decentralized financing mechanisms for basic services, and community driven development. The Bank will also continue to support Government response for emergencies, such as food insecurity, locust invasions and avian flu. 24. Two fundamental and cross-cutting issues in the CAS include support for improved governance and demographic issues, with a particular focus on improving the situation for women, who tend to be more vulnerable to food insecurity. 25. This operation will contribute to several specific CAS outcomes, including i) helping Government and farmers be better prepared for natural disasters; ii) reducing gender inequity, as evidenced by establishing an effective food security and social protection strategy. Expected Outcomes 26. With this grant support, rice yield in metric tons per hectare is expected to increase by 20 percent in the irrigated plots treated with the recommended dose of fertilizers at the end of the pr~ject.~ 27. With 4,000 tons of fertiiizer procured under the grant, and distributed at an affordable price to farmers, 10,000 ha of paddy are expected to be adequately fertilized over the project time frame. 28. The management capacity of the CCA and OPVN for monitoring food security will be strengthened. 29. A comprehensive safety nets program is prepared and being implemented with the FCPMF instruments. D. APPRAISAL OF PROJECT ACTIVITIES 30. From July 8 to 11, 2008, a Bank team discussed with the Government s officials the country proposal for using the grant and met with the EU, the donor coordinator in the Joint Government Donor Committee for Food Security, and with FAO. The Bank team came up with the following: 31. Technical: The government proposal is technically articulated and provides a rapid and effective response with regard to the current stage of agricultural production The project eighteen months timeframe includes two rice cropping seasons: the main season starting in July and ending December 2008, and the counter-season starting in February and ending June

16 and life cycle in rural areas. The government s approach consists of giving priority to food supply mainly through domestic production of irrigated rice compared to rain fed traditional cereals. At this early stage of the cropping season, fertilization of rain-fed cereals would have less impact than on irrigated rice, which fertilization is sequentially fragmented into two or three treatments. The 400kg per hectare of fertilizer proposed derived from research experimental and would ensure 4.7 tons per hectare in terms of output on average, compared to 3 tons per hectare with current farmer s practices. 32. Economic: The urgency of a response has limited the time for preparing an adequate quantitative economic appraisal. That said, the grant will support short term benefits of increased rice production for increased consumption, income-generation for targeted farmers from the sale of rice, and funding to increase cereal stocks, as well as longer term results to strengthen sustainability, by supporting the safety net mechanisms under the FCPMF and strengthening the capacity of the involved organizations (CCA, OPVN). The increase in rice yields would result in increased farmer revenues that outpace the marginal cost associated with procurement of fertilizers, more so at subsidized prices. 33. Financial Management assessment: A Public Expenditure Management and Financial Accountability Review (PEMFAR), including a CFAA, was carried out for Niger in November The report identifies a number of areas where additional steps need to be taken to strengthen existing institutions and/or accelerate the reform process. These include: (i) budget preparation and execution; (ii) computerized financial information systems; (iii) cash management; (iv) domestic debt management; and (v) internal and external controls. 34. The FM mission assessed the capacity of the Food Crisis Coordination Unit (CCA) and found that the Chief Finance Officer (CFO) has previous experience in World Bank FM procedures (on the Private Irrigation Project) and the Accountant also has satisfactory experience and competence in accounting. An FM manual and software are already in place and internal controls are strong. The annual financial statements are audited and IFRs are regularly produced. The opinion on 2006 financial statements is unqualified; that for 2007 is not yet available because the process of appointment of auditors by EU is underway. The harmonized FM procedures applied on the FCD operations are acceptable. 35. The CA in the Ministry of Agriculture Development procures fertilizers, manages related stocks and cash receipts generated from sales. It transfers a part of these receipts to the CCA for financing the safety net program. However, CA has a weak internal control system and the scope of its audits is narrow. Procedures related to procurement, inventory and delivery management, cost recovery are not documented. However, it is well staffed and has reliable software in inventory management. It produces annual financial statements (balance sheet, income statement and use and sources statement) and practices in inventory management are in place. 36. The conclusion of the FM assessments is that the CCA and CA financial management capacities meet the World Bank s minimum requirements under 8

17 OPA3P However, the capacity of CA needs to be strengthened on an urgent basis with regard to documenting satisfactory procedures of inventory and delivery management of fertilizers, and cash recovery from fertilizer sale. Other major areas of improvement are: developing an FM manual, ensuring a satisfactory audit scope (to be expanded from the current practice to include internal controls review) and appointing an experienced internal auditor. The overall FM responsibility will be assigned to the CCA. 37. Institutional and fiduciary: The CA is the government body in charge of procurement and distribution of agricultural inputs. In addition to distorting the inputs markets by taking up to 40 percent of fertilizer market share, and operating within a complex subsidy framework, there is some governance concern due to the fact that some of the products procured by CA consistently end up in traders stores and being resold at higher prices to farmers. CA does, however, have the appropriate procedures and skills to procure fertilizers in emergency conditions. The FCPMF related bodies, such as the CCA, which are under the joint donor-government supervision, have stronger control mechanisms and more transparent fiduciary procedures. The team recommends that the grant be managed by the CCA which will contract out CA for the procurement and distribution of the fertilizers, thereby using the strengths of each institution while minimizing the fiduciary risks associated with CA. 38. The Project design and implementation will draw from the lessons of Malawi, which has successfully developed a food security scheme combining various government interventions, including distribution of subsidized inputs, and market-based mechanisms such as warehouse receipts and index based crop insurance. Other lessons have also been drawn from the Regional Africa Emergency Locust Project, through which the Bank also contributed to restoring productive capacity of farmers affected by the 2004 locust surge in seven participating countries, including Niger, through fast track distribution of inputs to eligible farmers. Safeguard policies - Environment 38. From an environmental and social safeguard point of view, the Niger Emergency Food Security Support Project is a Category B project. That is, the environmental and social impacts of the project, for the most part, are expected to be minimal, site-specific and manageable to an accepted level. Two safeguard policies are triggered: The Environmental Assessment Policy (OP 4.01) and the Pest Management Policy (OP 4.09). The latter is triggered based on project s objectives to boost agricultural production and productivity through purchase of large quantities of fertilizers to be distributed to farming communities. 39. The existing Environmental and Social Management Framework (ESMF) and the Pest Management Plan (PMP) will be adapted to the project and will be reviewed and approved by ASPEN and disclosed in-country and at Bank Infoshop, in accordance with Bank and National policies by the project, within six months of grant effectiveness. However, intensive supervision will be provided commencing with the first supervision after signing to ensure the safe use of fertilizers and support to farmers. The safeguards specialist will participate in the first supervision mission. 9

18 40. The ESMF covers the guidelines and procedures for environmental and social screening, designed to help avoid, minimize or mitigate impacts resulting from unbalanced use of agrochemicals, such as eutrophication in irrigation canals and downstream waterways, and irrigation- specific impacts, such as water logging, salinization, and water-borne or related diseases. The ESMF also discuss institutional arrangements for implementing and monitoring safeguard measures, along with any capacity strengthening and awareness raising measures deemed necessary for relevant stakeholder groups. The ESMF is considered both as a planning tool and as a way to maximize the positive effects of this operation. E. IMPLEMENTATION ARRANGEMENTS AND FINANCING PLAN 41. The project will be implemented using the existing FCPMF institutional set-up, which includes the joint Government-Donor Committee (CRC) and the CCA which it oversees. As part of the FCPMF, three facilities have been created: The Donor Basket Fund (FCD) which receives donors financial contribution; the Food Security Fund (FSA), which is fed by the FCD and direct contributions from bi-laterals and whose purpose is limited to buying and distributing food during crises; and the National Food Security Stocks (SNS) which receives in-kind donations and may also be replenished with funds from the FSA. The CCA is responsible for managing FCD and FSA while OPVN manages the SNS. 42. The grant will be entirely disbursed to the FCD. The CCA will be the managing body. CCA will contract out to CA for the procurement of fertilizer. Capacity-building activities under Component 2 will require a longer implementation period than Component Financial management arrangements: The FM arrangements for the grant will be based on the existing FCPMF. Under the guidance and the responsibility of the Prime Ministry, the CCA is responsible for financial management and for preparing audits of accounts, systems and procedures acceptable to the Donors pooled funds. The National Coordinator is the authorizer (ordonnateur) of expenditures of the FCD and therefore will also be the authorizer of the grant expenditures. He approves related commitment documents and warrants. He authorizes cash transactions of the FCD bank account and shares that duty with the Cabinet Director of the Prime Ministry. Records are kept for all FCD-related expenditures following generally accepted accounting principles. The annual financial statements prepared by the CCA are audited annually, following international auditing standards, by independent auditors acceptable to the Donors Pool. The CCA also prepares Interim Un-Audited Financial Reports (IFR). The CA would maintain satisfactory controls over the procurement and distribution of fertilizers, and collection of cash receipts; and will strengthen its procedures on these aspects. The CA would also prepare and submit IFRs, and annual audited financial statements for its activities under the project. 44. Disbursement arrangements: The CCA manages the designated Pool account in which the grant will be entirely disbursed for the FCD. It will be in charge of preparing payments to fertilizer suppliers contracted by the CA and will also manage cash receipts 10

19 from the fertilizer operations carried out by the CA and be responsible for allocating them for financing the safety net program. Procurement Assessment 45. Procurement activities will be managed by the CA for Component 1 (fertilizers) and the CCA for Component 2. Fertilizers will be procured using appropriate methods in response to this operation (Annex 5). An assessment of the capacity of the two entities was carried out by IDA in July The assessment reviewed the organizational structure for implementing the project, the interaction between the project staff responsible for procurement and the Ministry s relevant Central Administration and Finance Division. 46. The evaluation revealed the following: 9 The CCA is a public office under the responsibility of the Prime Minister Cabinet; for consulting services, a procurement commission appointed by the Prime Minister is responsible. There is no specific procurement unit; and CCA has limited experience in procurement with other donors, particularly in areas covered by component 2, and no experience with World Bank procedures (hence the contracting out to CA). > The CA does not have a specific procurement unit, has prepared few bidding documents and all procurement actions are supervised by the central procurement division in the Ministry of Agricultural Development, which is led by a staff with experience in World Bank procurement procedures. The evaluation commission is appointed by the Ministry. 47. Given the large volume of fertilizers to be procured under the grant and the need for a rapid response, a Fast Track Limited International Bidding with 14 days of submission is proposed to be applied. 48. The key procurement related issues and risks with regard to the implementation of the project have been identified and include: (i) possible confusion between the national procurement rules and IDA procedures by executing agencies; (ii) the implication of the private sector representatives in the evaluation stage in addition to their participation in the A M P sessions, which increases the risk of unjustified complaints delaying the contract award and signature; (iii) the procurement process control and approval by staff inexperienced in IDA procedures, which may result in rigidity in the interpretation of the texts; and (iv) delays in the review of procurement decisions by Niger s DGCMP and their approval by the proper authority. 49. The corrective measures proposed are: (i) employ fertilizer procurement specialist to assist CCA, and organize quick procurement training for CCA staff involved in procurement; (ii) non-application of the list of clauses of the National Procurement Code which are not entirely consistent with the World Bank s procurement guidelines. The list 11

20 of clauses is included in Annex 5; and (iii) close project supervision by Bank staff based in the country office. 50. The overall project risk for procurement is substantial Supervision arrangements. Quarterly supervision mission will be carried out, commencing with the first supervision mission after project signing. The Bank supervision team is composed of two technical specialists (including the TTL), a procurement specialist and a financial management specialist based in the field, and will get support from a senior operations officer and safeguards specialist based in HQ, as well as from consultants in the specific areas of safety nets and food security monitoring, evaluation and reporting. Project supervision will be largely performed by staff based in Niamey. Bank staff based in the Country Office will also participate in CRC semimonthly meetings. The Bank will require that CCA report on the FPCR grant implementation on a quarterly basis. The report will serve as a basis for a formal supervision mission. 52. The project closing date is December 31, The implementation timetable is as follows. RVP approval August 1,2008 Effectiveness August 15,2008 Contracts for fertilizer and seeds August 16,2008 Delivery of fertilizers and seeds August 25,2008 Contracts for technical assistance to CCA September 31, 2008 Assessment of distributionhe of fertilizers January 30,2008 Completion of designing safety nets programs February 20,2009 Evaluation of Project Performance November, 2009 Project closing December 3 1,2009 Project Completion Report March 2010 F. PROJECT RISKS AND MITIGATING MEASURES 53. Risks associated with CA are related to fiduciary and governance issues and are considered to be substantial, with political interests possibly leading to poor targeting of farmers that most need fertilizer, or fertilizer ending up in traders stores. To mitigate fiduciary risks, FCPMF procedures will be used, which will require CCA to provide quarterly reports on the fertilizer operation and for net sales to be returned back to the Food Security Fund. Distribution and use of fertilizers will also be monitored by cooperatives and associations under advisory support of ONAHA extension agents, as well as through reporting to the CCA and FPCMF. The project will also use radio broadcasting and public meetings facilitated by ONAHA to raise awareness about the 12

21 program, contribute to transparency and to monitor the program, in addition to quarterly reporting and spot audits. 54. Other specific provisions to ensure transparency in the distribution of fertilizers and targeting eligible users include (i) involvement of rice grower cooperatives and their apex association (Federation des Unions de Cooperatives de Riz, FUCOPRI) in the distribution and repayment process. Each cooperative will keep records on number of beneficiaries and size of respective plots, volumes of fertilizer received, amount paid to CCA, volume of paddy harvested. CCA, in collaboration with FUCOPRI, CA, and ONAHA (Office Nige'rien des Ame'nagemnt Hydroagricoles) will ensure periodic disclosure of such information using national TV and local radio broadcasts. In addition, technical audits would be carried out to assess how the fertilizer has been distributed. G. TERMS AND CONDITIONS FOR PROJECT FINANCING 55. The project will be financed on 100 percent grant terms using funding from the Food Price Crisis Response Trust Fund (FPCR TF). The project may retrofinance, in accordance with OP 8.00, the pre-purchase of fertilizers for rice production, procured as part of the FCPMF response, for up to 40 percent of the total grant amount. 56. The CA would implement the agreed on action during negotiations to strengthen its financial management system. 57. There are no conditions of effectiveness. 13

22 Annex 1. Detailed Description of Project Components Niger Emergency Food Security Support Project (FPCR TF) 1. The grant in its entirety will be disbursed to the Donor Basket Fund to support the following activities clustered under two components: Component I: Procurement and Distribution of Fertilizers ($6,5million): 2. The component will support costs associated with the urgent procurement of 4,000 metric tons of fertilizers (urea and di-ammonium phosphates) to be used on 10,000 ha of irrigated rice in the current cropping season. Fertilizer will be procured by the CA in August 2008 using agreed upon procedures under the Food Crisis Prevention and Management Framework (FCPMF). This includes the cost of fertilizers and operating costs of CA and CCA associated with the procurement and the distribution of fertilizers. 3. CA will deliver the fertilizers to paddy producers at subsidized price in line with current government s inputs subsidy policy (e.g. up to 40 percent of subsidy on selling price). 4. The component will be executed by the Food Crisis Coordination Unit (CCA) which will contract out CA for the procurement and distribution of fertilizers, and for recovering payment from producer associations. Component 11: Support to the National Food Crisis Prevention and Management Framework ($0.5 million): 5. This component will contribute to strengthening management capacity of the CCA, the permanent secretariat for the FCPMF, and provide technical assistance to ensure sustainability of the project over time by building bridges with medium to longer term operations. Activities will include: o adequate management of FPCMF, monitoring food security (including accurately and timely reporting on food prices across the country and along the borders with Nigeria), and of OPVN grain storage facilities ($200,000); o technical assistance for designing and implementation of sustainable safety nets programs to tackle permanent food insecurity which affects 3 million people in Niger ($100,000); o o support to inputs market reforms and restructuring of the CA. These activities will be carried out in collaboration with EU and FA0 supported community based inputs marketing program ($100,000); and Capacity building and improvement of fiduciary systems (financial management and procurement) of project executing agencies to ensure that the funds are properly managed and accounted ($100,000). 6. The grant will cover costs associated with technical assistance (consultants), incremental additional cost for monitoring relevant food prices and OPVN storage facilities in targeted areas, technical audits, preparation of CA s FM Manual and upgrading of its accounting software and, workshop and training for staff of CCA and institutions participating in the implementation of the project s activities. 14

23 Annex 2. Results Framework and Monitoring Niger Emergency Food Security Support Project (FPCR TF) The objective of the grant is to support the government efforts to mitigate the impact of the food mice crisis 0 increase in rice yield in plots treated with recommended dose of fertilizers Measure efficacy of rice intensification through adequate fertilization Component 1 0 Tons of fertilizers procured and Procurement of fertilizers distributed to rice paddy farmers at a subsidized price Improvement in irrigated rice 0 ha of irrigated rice fields treated productivity with adequate dose of fertilizers Track progress of use of fertilizers and targeting of rice producers Component 2 Support to the National Food Crisis Prevention and Management Framework Improved capacity of CCA to manage FCPMF facilities and designed of safety nets programs Regular reporting on relevant food prices and national food security stocks. Preparation and implementation of sustainable safety nets programs Measure improved M&E capacity. Gauge government commitment to make to address permanent food insecurity 1. Arrangements for results monitoring: Under the Food Crisis Prevention and Management Framework, the Government has developed with donors' support an effective food security monitoring system which will be useful to assess the impact of the project. The System is composed of an Early Warning System (SAP) which uses weather data and surveys on the ground to identify areas and population at risk, and an Agricultural Markets Information System (SIMA) which monitors prices of major cereals and staples across the country. 2. The CCA is responsible for monitoring and evaluation of project activities, and will formally report on progress in project implementation (outcomes and output indicators) on a quarterly basis. To that aim, CCA will collate data with CA, the National Irrigation Development Office (ONAHA), and the Rice Producer Cooperatives regarding distribution and use of fertilizers as well as production and yield estimates at the end of the cropping season. CCA is already managing information regarding the food security stocks in collaboration with OPVN, and both CCA and OPVN will benefit under the grant from capacity building activities to improve management and M&E of the national security stocks. Results monitoring table is presented below. 15

24 increase in rice yield in plots treated with recommended dose of fertilizers Intermediate Outcomes Tons of fertilizers procured and distributed to rice paddy farmers at a subsidized price ha of irrigated rice fields treated with adequate dose of fertilizers Regular reporting on relevant food prices and national food security stocks Preparation and implementation of sustainable safety nets Pro@- 2.5 tons per ha (without fertilizati on) Baseline Weekly bulletin on prices and areas at risk from SAP and EWS None 3.0 tons per ha Year1 (1213 1/08) 4,000 6,000 Report on Food security and project implemen tation including on food security stocks Programs prepared and validated by the FCPMC 3.5 tons per hectare Year2 (6/30/09) 4,000 Report on Food security and project implementatio n including on food security stocks GoN starts implementing programs using net revenues from the fertilizers End of cropping season +1 month (January 2008 and February 2009 Frequency of Reports By end of September 2008 End of cropping seasons Quarterly Quarterly cooperatives Data Collection Instruments CA procurement records, invoices and receipts Farmers Cooperatives, ONAHA data base SAP And EWS bulletins, +data from OPVN, ONAHA and CA progress reported in CCA quarterly report ONAHA and CCA Responsibility for Data Collection CA and CCA ONAHA and CCA CCA and OPVN CCA 16

25 b 3

26 Annex 4. Financial Management and Disbursement Arrangements Niger Emergency Food Security Support Project (FPCR TF) Summary of the Financial Management Assessments 1. Financial management assessments were carried out in accordance with the Financial Management Practices Manual issued by the Financial Management Board on November 3, The objective of the assessments was to determine whether the National Food Crisis Coordination Unit (CCA) and the Centrale d 'Approvisionnement (CA), the implementing agencies of the FCD, have acceptable financial management arrangements, which will ensure: (1) the funds are used only for the intended purposes in an efficient and economical way; (2) the preparation of accurate, reliable and timely periodic financial reports; and (3) safeguard the implementing entities' assets. CCA will remain the Budget Management and Accounting Center (BMAC) of the FCD and will receive revenues from fertilizer operations carried out by the CA to finance safety net programs. The CA procures fertilizers, manages related stocks and receives cash revenues generated from sales. It transfers a part of these cash receipts to the CCA for financing the safety net program. 2. The FM mission assessed the capacity of the Food Crisis Coordination Unit (CCA) at Niamey and found that the Chief Finance Officer (CFO) has previous experience in World Bank FM procedures through First Private Irrigation Project (PIP1) and the Accountant also has good experience and competence in accounting. A FM manual and software are already in place at the CCA and internal controls are strong. The annual financial statements are audited and acceptable IFRs are regularly produced. The opinion on 2006 financial statements is unqualified; those for 2007 are not yet available because the process of appointment of auditors by EU is underway. The harmonized FM procedures applied on the FCD operations are acceptable. The Centrale d 'Approvisionnement (CA) has a weak internal control system and the scope of its audit is narrow. Procedures of procurement, inventory and delivery management, and cost recovery are not documented. However, it is well staffed and has reliable software in inventory management. It produces annual financial statements (balance sheet, income statement and uses and sources statement) and practices related to inventory management are in place. The conclusion of the assessments is that the CCA and CA financial management capacity meet the World Bank's minimum requirements under OPBP and are therefore adequate to provide, with reasonable assurance, accurate and timely information on respectively the status of the FCD and CA as required by the Donors Pool. However, the capacity of CA needs to be strengthened on an urgent basis with regard to documenting satisfactory procedures of inventory and delivery management of fertilizers and cash recovery from fertilizer sale. Other major areas of improvement are: developing an FM manual, ensuring a satisfactory audit scope (to be expanded from the current practice to include internal controls review) and appointing an experienced internal auditor (see Table on FM actions plan). Considering the existing FM arrangements, the overall FM risk is substantial for the CA and moderate for the CCA. 18

27 Country Issues 3, A Public Expenditure Management and Financial Accountability Review (PEMFAR), including a CFAA was carried out for Niger in November Its report was finalized in June 2004 and published by the Bank in December 2004 under number NE. The report identifies a number of areas where additional steps need to be taken to strengthen existing institutions and/or accelerate the reform process. These include (i) budget preparation and execution; (ii) computerized financial information systems; (iii) cash management; (iv) domestic debt management; and (v) internal and external controls. 4. Improving Niger s Public Finance Management requires a long-term reform program, which should be implemented in phases and requires the full support of the government and the donor community. The PEMFAR includes a table presenting a list of essential reforms as key recommendations that should be implemented over the next three years and beyond to improve the structure of public expenditures and strengthen fiduciary capacity. As of today, the government is making great strides in improving financial management through a series of RSRCs. 5. The Niger CPPR held on June 20-21,2008 concluded on no major shortcomings in implementing internal control procedures in most of the projects and on financial management statements. 6. As of today, the fiduciary compliance of the World Bank portfolio in Niger indicates no overdue audit report. 7. At present, the overall country risk rating in Niger is substantial. The situation described above may have some effects on the Niger GFRP implementation because of the fiduciary concerns mentioned above by the PEMFAR report. 19

28 Risk Assessment and Mitigation Risk Inherent risk Country level: quality of PFM, standard of financial accounting, reporting and auditing; and quality of accounting profession.,ntity level: idependence of entity s management and appropriateness of rganizational structure. roject level: he project involves the procurement and distribution of xtilizers to dispersed locations, and cash collections. :ontrol Risk: Iudgeting : lack of clear definition of budget preparation process absence of authorization and monitoring of budget variations with a view to making decisions Lccounting delays in bookkeeping lack of adequate documented policies and procedures Risk Rating S M S for theca M for the CCA S for theca L for the CCA Risk Mitigating Measures Incorporated into Project Design In September/October 2006, the government strengthened the internal controls of the expenditure circuit by removing all the Financial Controllers and replaced them by new senior staff. In July 2007, a Financial Control Manual was developed. Guidelines and audit techniques for Court of Accounts are now documented. Actions are foreseen to produce reliable accounts on time. But the issue about the accuracy of financial information remains. However, the implementation of the PFM reform program (PEMFAR) is underway through execution of RSRCs series. There is a strong involvement of the Donors Pool in the FCD management and the FCPMF is running well. Also, the implementation of the PFM reform program (PEMFAR) will contribute a lot to address related issues. The CCA and CA are the main budget management and accounting centers of the operation. An action plan exists to strengthen the CA FM capacity For the CA, related procedures will be documented later in the FM procedures manual to be developed, and used to customize the existing accounting software accordingly. The newly recruited internal auditor will be trained to be familiar with FM procedures of Bank-financed projects. The internal auditor s recommendations will help strengthen FM capacity of the CA in budget preparation and execution, accounting and monitoring. For the CA, related procedures will be documented later in the FM procedures manual to be developed, and used to customize the existing accounting software accordingly. Overall Residual Risk rating S S M S M M M software not customized on the basis of the project s accounting needs iternal Controls lack of quality and documentation of policies and procedures unds Flow Absence of internal audit function. cash flow constraints due to delayed fund flows affecting project implementation; complicated fund flow arrangements not functioning well inancial Reporting lack of quality and documentation of FM reporting S for the CA M for the CCA M for the CCA and CA S for the CA For the CA, the procedures related to inventory and delivery management and cash recovery will be developed on an urgent basis and staff will be trained accordingly. The newly recruited internal auditor will be trained as well to be familiar with FM procedures. The grant proceeds will be deposited in the FCD Pool bank account under the CCA control. The cash receipts managed by the CCA from fertilizer operations of the CA will be deposited in a separate account to finance the safety net program. Related procedures for this separate account management will be documented at the FCD level.. IFRs are already produced by the CCA to the benefit of the FCD with slight delays. The CA does not produce them, but development of related M M M 20

29 responsibilities, form, content and periodicitytf I F G d annual financial reports delays in preparation and production of IFRs and annual financial reports M for the CCA procedures will be made later. However, the CCA and CA prepare their annual financial statements on a regular basis. Auditing inadequate institutional arrangements in place for the appointment of external auditors inadequate TORS for the CA limited capacity of national external auditors S for the CA M for the CCA The audit TORs will be developed to take into account the CA needs (to be expanded to internal controls review). The financial statements of the CCA and the CA are annually audited by private audit firms respectively appointed by the Donors Pool and the CA. Court of Accounts is being strengthened through RSRCs M Overall FM Risk Rating S for the CA M for the The functioning of all these FM arrangements will be followed -up during upcoming supervisions. M Strengths 8. The CCA and CA, as main budget management and accounting centers, are composed of key FM experienced staff. The CCA has FM harmonized procedures manual and software in place. 9. The annual financial management statements of both Centers are audited on a regular basis. Weaknesses and Action Plan Significant Weaknesses Action Responsible body Completion For the CA, lack of quality and documentation of policies and procedures. To develop procedures for inventory control and distribution of fertilizers, and cash recovery fkom fertilizers sale CA By ten days after effectiveness. Develop procedures Manual CA September 30,2008 Absence function. of internal audit To appoint an internal auditor CA September 30,2008 Narrow audit scope To develop relevant audit TORs: to expand the scope to internal controls review. CA August 3 1,

30 Financial Management Institutional Arrangements 10. The FM arrangements for the grant would be based on the existing FCPMF. Under the guidance and the responsibility of the Prime Ministry, the CCA is responsible for financial management and for preparing audits of accounts, systems and procedures acceptable to the Donors Pool. The National Coordinator is the authorizer (ordonnateur) of expenditures of the FCD and therefore will also be the authorizer of the grant expenditures. He approves related commitment documents and warrants. He authorizes cash transactions of the FCD Pool bank account and shares that duty with the Cabinet Director of the Prime Ministry. Records are kept for all FCD-related expenditures following generally accepted accounting principles. The annual financial statements prepared by the CCA are audited annually, following international auditing standards, by independent auditors acceptable to the Donors Pool. The CCA also prepares Interim Un- Audited Financial Reports (IFRs). The CA would maintain satisfactory controls over the procurement and distribution of fertilizers, and collection of cash receipts; and will strengthen its procedures on these aspects. The CA would also prepare and submit IFRs, and annual audited financial statements for its activities under the project. StafJing and Training 11. The project fiduciary staff of the CCA is composed of the National Coordinator, the CFO, two Accountants (funds and assets) and the support staff. This team works under the supervision of the National Coordinator. The CA is sufficiently staffed through 3 directorates in charge of fiduciary duties, which are (i) Revenues and Accounting, (ii) Staff and Assets, (iii) Stock Management. It will also appoint an Internal Auditor. 12. A training program will be drawn up to continue to strengthen fiduciary management capacity. Training is mainly conducted through the World Bank s local or sub-regional training institutions (CESAG and ISADE in Dakar). The CA will require a consultant to develop the FM manual. Budgeting 13. The budget preparation process and its monitoring is clearly defined and documented in the FM manual of the CCA that will develop the subsequent Annual Work Program and Budget (AWPB). Accounting Policies and Procedures 14. Accounting standards applied by the CCA and CA are similar to the International Public Sector Accounting Standards (IPSAS) issued by the Public Sector Committee of the International Federation of Accountants (IFAC-PSC). Any significant difference will be adequately disclosed and explained in the notes of the financial statements. The CCA and CA prepare their project financial statements for auditing. 22

31 15. Accounting Software: A computerized financial management system is developed and put in place at the CCA and CA. The CFOs use a satisfactory and sound accounting package capable of producing all the accounting and financial data required, including financial statements, bank reconciliation statements, and all financial reports, such as the Interim Un-Audited Financial Reports (IFRs). The books of accounts also are maintained electronically in this software. 16. Internal auditing: The General Inspection Finance of the Ministry of Finance will retain the right to carry out any control at the levels of the CCA and CA. They would carry out reviews of transactions from time to time, based on their mandate for Public Sector Control Institutions. An internal auditor will be appointed for the CA. 17. Internal control: On an urgent basis, procedures for inventory and delivery management of fertilizers and cash recovery from fertilizer sale will be documented within 10 days of effectiveness. This is to ensure that satisfactory controls over these key areas are in place. The rest of the FM procedures manual of CA will be developed by September 30, 2008 in conjunction with an appropriate customization of existing accounting software. This action aims to cover the CA needs, documenting the detailed FM procedures, and ensuring a robust internal control arrangement, including procurement duties and activities assigned to the CA. Funds Flow and Disbursement Arrangements 18. Disbursement Arrangements: The CCA manages the designated Pool account in which the grant will be entirely disbursed for the FCD. It would be in charge of preparing payments to fertilizer suppliers contracted by the CA. The CCA would also manage cash receipts from the fertilizer operations carried out by the CA and would allocate them to finance the safety net program. 19. Disbursement Methods: Disbursement would be based on Interim Financial Reports (IFRs). IFRs would be submitted quarterly and have forecasts for the next 2 quarters. The first disbursement would be made after effectiveness covering the forecasted cash needs for the first 2 quarters. Indications and instructions on applications 20. The indications and instructions of withdrawal applications submitted under the grant will be documented in the Letter of Disbursement of the Niger GFRP. Reporting on Use of Loan Proceeds 21, Disbursements for all expenditures should be made against a documentation filed at the level of the CCA and to be documented in the Letter of Disbursement of the Niger GFRP. 23

32 Designated Account 22. The Designated Pool Account is the present one of FCD, managed by the CCA. It is located in a commercial bank at Niamey. The currency of this account is the CFAF (XOF). Allocation of the proceeds of Niger GFRP Categories 1. Procurement and distribution of fertilizers 2. Support to the National Food Crisis Prevention and Management Framework TOTAL AMOUNT Percentage of Expenditures Amount in US$ millions to be financed percent including taxes percent including taxes 7.00 Flow of funds: Account of FCD in commercial bank and managed by the CCA commercial bank, managed by the CCA for flnancing the safety net program Leeend: Report-based hds transferred in the FCD bank accounts Payments to fertilizer and related service suppliers 24

33 Financial Reporting and Monitoring 23. The CCA is responsible for the overall reporting of the FCD. It produces interim un-audited financial reports (IFRs) on a periodic basis, and the annual financial statements requested. The accounting software already installed at the CCA level will provide these financial reports. 24. The CFO of the CCA would make sure that, the Interim Un-Audited Financial Reports (IFRs) are produced on quarterly basis and transmitted to the Donors Pool within 45 days of the end of the quarter following related reporting procedures of the existing FM manual of the FCD. The CA would provide quarterly IFRs showing the amount of cash receipts from fertilizer sale, and the amount remitted to the CCA, within 45 days from the end of the quarter. 25. The reporting format and procedures documented in the CCA s FM Manual are composed of financial reports such as (i) sources and uses of funds by funding source and nature of expenditures; and (ii) uses of funds by components/activities of the project. 26. IFRs and annual financial statements of the CCA will cover all activities financed through the FCD. The annual financial statements will be subject to external audit as described below. The CCA and CA are required to produce, not later than June 30 of the following borrower fiscal year, audited annual financial statements. External audit: 27. External auditors from a Private Firm in accordance with international auditing standards acceptable to the Donors Pool will conduct an annual audit of the financial statements prepared by the CCA. The CA will be audited as well under the same requirements. The Bank would expect to receive two separate audit reports, the one for the CCA and another for the CA Audit Report CCA: External auditors opinion on Financial Statements (annual financial statements, designated account statements and IFRs). Letter to Management prepared by the external auditors and containing findings and recommendations on internal controls would also be submitted. CA: External auditors opinion on Financial Statements (annual financial statements and IFRs). Letter to Management prepared by the external auditors and containing findings and recommendations on internal controls would also be submitted. Due Date Submitted within six months after the end of each financial year. Submitted within six months after the end of each financial year. In addition to the opinion on Financial Statements, the CA audit will put emphasis on implementation of procedures of inventory and delivery management, cash recovery from 25

34 fertilizer sales, and remittance of these revenues to CCA for financing the safety net program. Financing conditions 28. In order to strengthen its financial management system, CA would implement the following action plan which has been agreed on at project negotiations. Financial Management Actions plan satisfactory procedures for inventory control and delivery management of fertilizers, and cash recovery from sale of fertilizers 2008 on August 04,2008. Develop Procedures Manual Recruitment of an internal auditor with satisfactory terms of reference and qualifications and experience satisfactory to the Donors Pool Revise and submit TORS for external audit to the Joint Govemment-Donor Committee (CRC) for technical review Appointment of External Auditor with qualification and experience satisfactory to the Donors Pool. By September 30, CA 2008 By September 30, Process started CA 2008 within 10 days of effectiveness (August 15,2008) By August 3 1, Process of validation CA and approval started within 10 days of effectiveness (August 15,2008) By October 31, Selection process CA 2008 started within 25 days of effectiveness I (August 30,2008) 29. Furthermore, Government: (i) will compliant with all the rules and procedures required for disbursements in the Designated Pool Account of the FCD; (ii) will maintain the financial management system including records, accounts and preparation of related financial statements in accordance with accounting standards acceptable to the Donors Pool and to be audited; and (iii) will prepare and furnish to the Donors Pool Interim Un- Audited Financial Reports (IFRs). Supervision plan 30. Given the urgency of the GFRP operational response needed, the FCD would require intensified financial management supervision, which should be budgeted for. Howeyer, intensity of supervision could be reassessed upon the evolution of the rating for the overall FM risk. 26

35 31. Financial management supervision will jointly be carried out by the Donors Pool s Financial Management Specialists who will carry out the following tasks: 0 Conduct a financial management supervision before effectiveness/disbursement; Review the financial management aspects of the IFR; 0 Review the Audit Reports and Management Letters from the external auditors and follow-up on material accountability issues by engaging with the task team leader, Client, andor Auditors; the quality of the audit (internal and external) also is to be monitored closely to ensure that it covers all relevant aspects and provides enough confidence on the appropriate use of hds by recipients; Provide assistance to build or maintain appropriate financial management capacity; 0 Reviews of controls; and Reviews of transactions, including a sample of transactions. 27

36 Annex 5: Procurement Arrangements Niger Emergency Food Security Support Project (FPCR TF) A. Background - Procurement reform 1. A Country Procurement Assessment Report (CPAR) for Niger has been finalized in 1998; following this assessment, the Government has developed a new procurement code CMP (in 2002) and created the National Procurement Regulation Agency (ARMP). The procedures and mechanisms for addressing bidders' complaints are handled by the Disputes Settlement Committee (CRD) within ARMP. While the Government Procurement Code defines procurement procedures in conformity with good practices that are deemed acceptable by the Bank, in contrast there are a number of major implementing texts for the CMP that are not in place, in particular the Government Procurement Procedures Manual that should establish efficiency standards, procedures, and the delegation of powers and responsibilities throughout the institutional chain. Niger followed strictly the UEMOA guidelines by clearly separating the control functions and the regulation process. Thus the ARMP composition, organization and operation were defined by the decree NO190 PRNREF dated July 6, The texts related to the organization and functioning of the Central Directorate for Public Procurement (Direction Centrale des March& Publics) are under examination by the Government. The overall procurement context in Niger is considered satisfactory and no major problem has been identified in the IDA financed projects. However, to allow a full application of the provisions of World Bank's procurement and selection and employment guidelines, IDA has provided to the project preparation team the list of the national procurement clauses which are partially or entirely inconsistent with World Bank's guidelines (see end of this annex). B Guidelines 2. Procurement for 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, revised October 2006; (ii) "Guidelines: Selection and Employment of Consultants by World Bank Borrowers'' dated May 2004, revised October 2006; (iii) Requirements of OP8.00 for Rapid Response to Crisis and Emergencies; and (iv) the provisions stipulated in the Grant Financing Agreements. The various items under different expenditure categories to be financed are described below. For each contract to be financed by the Grant, the different procurement methods or consultant selection methods, the need for prequalification, estimated costs, prior review requirements, and time frame are agreed between the Government and the Bank 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.

37 C. Procurement Methods 3. Procurement of Goods. Goods procured under the project include (i) 4,000 mt of fertilizers for irrigated rice including operating cost for delivery; and (ii) cereals during crisis but not financed directly by the Bank. In response to the new Framework for Rapid Response to Crisis and Emergencies captured in OP8.00, and to facilitate project implementation and quick delivery of results, no objections will be given, where appropriate, to the application of the following: Using fast track competitive procedures as procurement methods (fast track LIB) for procurement of goods; using lists of prequalified suppliers with good track record to whom periodic invitations are issued. For all procurement of goods, the SBD and bidding documents acceptable to the bank will be used. 4. Selection of Consultants: Consultancy services include the hiring of individual consultants and firms for the Food security M&E and technical assistance. The project has been classified as a rapid response program where, in conjunction OP8.00, Accelerated and Streamlined Procedures may apply to improve the flexibility, speed, and effectiveness of the Bank s emergency response. The use of a pool of experts, or a list of pre-selected consulting firms, and/or individuals may, therefore, be an appropriate method for supporting project implementation. Such a method will remain consistent with QCBS, CQS, and/or the Selection of Individual Consultants. No-Objection will also be given for sole-sourcing (single-sourcing) of consulting firms, where it presents a clear advantage over competition. 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 nature of the assignments is described in h e x 1 para 5 and the estimated cost for each contract is below $1 00,000. o The selection process would be conducted by the CCA For all contracts to be awarded following QCBS, LCS and FBS, the Banks Standard Request for Proposals will be used. o Short lists of consultants for services estimated to cost less than US$lOO,OOO equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines. o Consultancy services estimated to cost above US$ 200,000 per contract for firms, and single source selection of consultants (firms and individuals) will be subject to prior review by the Bank. Prior review of the evaluation process of the selection of individual consultants (i.e. comparison of three CVs) will only be carried out in exceptional circumstances, for example when hiring an Advisor for the entire project duration which could result in a substantial contract amount. Such contracts will be identified in the procurement plan. 29

38 5. Training and Workshops: Training will be carried out on the basis of approved programs on a yearly basis. The programs will identify the general framework of training and similar activities for the year, including the nature and objectives of training and workshops as they relate to the project objectives. 6. Incremental Operation Costs: In addition, projects will finance incremental project implementation-related expenditures such as transportation, in-country travel, per diem, office supplies, office rentals, utilities, maintenance, consumables, communication costs, etc. These will be financed by the project, and would be procured using the CMP, where appropriate. D Assessment of the agency s capacity to implement procurement 7. Procurement activities would be managed Food Crisis Coordination Unit (Cellule de Crise Alimentuire, CCA) for component Procurement for fertilizers will use the rapid procurement method. 9. An assessment of the capacity of these entities has been carried out by IDA in July The assessment reviewed the organizational structure for implementing the project and the interaction between the project staff responsible for procurement and the Ministry s relevant central unit for administration and finance. 10. The evaluation revealed the following points : 9 The CCA is a public office under the responsibility of Prime Minister s Cabinet; for consulting services, a procurement commission appointed by the Prime Minister is responsible. There is no specific procurement unit and CCA has limited experience in procurement with other donors particularly in areas covered by component 2, and has no experience with World Bank procedures. P The CA is a public office under the responsibility of the Ministry of Agriculture Development; it does not have a specific procurement unit; CA has prepared few bidding documents hence all procurement actions are closely supervised by the central procurement division in the Ministry of Agriculture Development which is led by a staff with experience in World Bank procedures. The evaluation commission is appointed by the Ministry. 11. Given the large volume of fertilizers to be procured under the grant and the need for a rapid response, a Fast Track Limited International Bidding with 14 days of submission is proposed to be applied. 12. The key procurement related issues and risks with regards to the implementation of the project have been identified and include: (i) possible confusion between the national procurement rules and IDA procedures by executing agencies; (ii) the implication of the private sector representatives in the evaluation stage in addition to their 30

39 participation in the ARMP sessions, that may lead to unjustified complaints delaying the contract award and signature; (iii) the procurement process control and approval by staff not experienced in the IDA procedures, which may bring a risk of rigidity in the interpretation of the texts; and (iv) slowness in the examination of the procurement decisions by DGCMP and their approval by the proper authority. 13. The corrective measures proposed are: (i) employ fertilizer procurement specialist to assist CCA and organize quick procurement training for CCA staff involved in procurement; (ii) non-application of the list of clauses of the National Procurement Code which are not entirely consistent with the World Bank s procurement. This list is included in this annex; and (iii) close project supervision by the procurement division in the Ministry of Agriculture and development and Bank staff based in the country office. 14. In order to mitigate the risks identified in paragraph 12, the Government agreed to use the joint Government - Donors Food Crisis Committee, comprised of several experienced partners in the area of emergency procurement of agricultural inputs or commodities (such as FAO, WFP, EU, USAID etc.) and key administration services, to conduct and supervise the procurement process for fertilizers. From this perspective, the joint committee will appoint a technical sub-committee (TC) chaired by a representative of the Ministry of Agricultural Development to prepare the bidding document and the evaluation report. All of the documentation related to this procurement should be cleared by the joint committee before requesting the Bank s N o Objection. The overall project residual risk for procurement is moderate. E. Procurement Plan 15. The Borrower, at appraisal, developed a procurement plan for project implementation which provides the basis for the procurement methods. The plan has been agreed between the Borrower and the Bank Team and is available at CCA in Niamey. It will also be available in the project s database and in the Bank s external website. The Procurement Plan will be updated in agreement with the Bank Team annually or as required to reflect the actual project implementation needs and improvements in institutional capacity. All procurement will be carried out in accordance with the formally agreed procurement plans (original and formally up-dated). F. Frequency of Procurement Supervision 16. In addition, it is recommended to carry out supervision missions to conduct post review of contracts which are not subject to the above prior review requirements at the end of the project. The procurement post-reviews should cover at least 20 percent of contracts subject to post-review. Details of the Procurement Arrangements Involving International Competition 17. Goods, Works, and Non Consulting Services. (a) List of contract packages to be procured following ICB, and direct contracting: 31

40 Ref. No. Goods 1 Contract Estimated Proc. Pre- Domestic Review Expected Comments (Description ) Cost Method Qual. Pref. by Bank Bid- US% (yedno) Prior / Post Opening Date Fertilizers LIB No No Prior 16Aug ByCA (4000 metric 2008 tons) (b) Prior Review: All goods contracts to cost US$300,000 and above, all direct contracting, the first two contracts of each procurement method irrespective of the amount will be subject to prior review by the Bank as determined mandatory in paragraphs 2 and 3 of Annex 1 of the Bank s procurement Guidelines. c) Post Review: For each contract for works and goods not submitted to the prior review, the procurement documents will be submitted to IDA post review in accordance with the provisions of paragraph 4 of Annex 1 of the Bank s procurement Guidelines. The post review will be based on a ratio of at least 1 to 5 contracts Consulting Services (a) List of consulting assignments with short-list of international firms. None (b) Consultancy services estimated to cost above US$200,000 per contract for firms, and single source selection of consultants (firms and individuals) will be subject to prior review by the Bank. Prior review of the evaluation process of the selection of individual consultants (Le. comparison of three CVs) will only be carried out in exceptional circumstances, for example when hiring an Advisor for the entire project duration which could result in a substantial contract amount. Such contracts will be identified in the procurement plan. c) Post Review: for each contract for services not submitted to the prior review, the procurement documents will be submitted to IDA post review in accordance with the provisions of paragraph 4 of Annex 1 of the Bank s procurement Guidelines. The post review will be based on a ratio of at least 1 to 5 contracts. (d) Short lists composed entirely of national consultants: Short lists of consultants for services estimated to cost less than US$lOO,OOO equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines. 19. Provisions of CMP which should not apply: 32

41 The provision on article 03 on Direct Contracting shall not apply. The obligation to provide evidence that the bidder has satisfied all its tax obligations to the Recipient as a condition to make a proposal for the procurement of works, goods and non consulting services (notwithstanding any contrary provisions of article 10 of the Procurement Code) shall only apply to national bidders. The obligation to provide a certificate of eligibility as a condition to make a proposal for the procurement of works, shall only apply to national bidders (notwithstanding any contrary provisions of article 11 of the Procurement Code); the eligibility criteria for international bidders shall be limited to those included in the bidding documents. The division of expenditures in accordance with article 34 of the Procurement Code shall be subject to Prior Review by the Association. The national preference provided for by article 36 of the Procurement Code shall not apply. In addition to the provision of article 40 of the Procurement Code, the short list of bidders shall be subject to Prior Review by the Association. Each contract procured through direct contracting in accordance with article 42 of the Procurement Code shall be subject to Prior Review by the Association. The amount of the bidder s guarantee provided for in article 79 of the Procurement Code shall be determined as a percentage (1 to 2 percent) of the estimated cost of the contract. No representatives of the private sector shall be included in the Recipient s committee for the bid evaluation and award (despite the provisions of Articles 3, 15 and 26 of the Recipient s arr&ti 113 dated October 10,2006). The conditions of application of the various methods of procurement under the National Competitive Bidding shall be determined in the Procurement Plan (notwithstanding any contrary provisions of articles 5 and 7 of Recipient s arr&te 270/CAB/PM/ARMP dated October 24,2007). Additional definitions: Procurement Code means the Recipient s procurement law entitled Code National des Marchis Publics adopted by Ordinance No dated September 18,

42 Annex 6. Implementation and Monitoring Arrangements Niger Emergency Food Security Support Project (FPCR TF) 41. The project will be implemented using the existing FCPMF institutional set-up, which includes the joint Government-Donor Committee (CRC) and the CCA which it oversees. As part of the FCPMF, three facilities have been created: The Donor Basket Fund (FCD) which receives donors financial contributions; the Food Security Fund (FSA), which is fed by the FCD and direct contributions from bilateral partners and whose purpose is limited to buying and distributing food during periods of food shortage; and the National Food Security Stocks (SNS) which receives in-kind donations and may also be replenished with funds from the FSA. The CCA is responsible for managing the FCD and FSA while OPVN manages the SNS. The grant will be entirely disbursed to the FCD at project effectiveness, and the CCA will be the managing body. 42. Implementation of activities under Component 1: CCA will contract out to CA the implementation of Component 1, e.g. for the procurement and distribution of fertilizers. Current CA s procedures will be used for distribution of fertilizers to eligible producers. These procedures need however to be documented in a manual of procedures as indicated in Annex 5 of this document. CA will sell fertilizers on priority to rice producer s cooperatives at subsidized prices, and all transaction documents will be kept in CA and Cooperatives books for monitoring and technical and financial audits. CAY in collaboration with the umbrella organization of rice producer cooperatives (FUCOPRI) and relevant bodies within the Ministry of Agricultural Development, will report on a weekly basis to CCA on progress in delivery of fertilizers to and targeting of producers, and cost recovery as well. CA in collaboration with FUCOPRI will also ensure appropriate dissemination of such information using appropriate local broadcasting channels. 43. CDA will return net sale revenues from the sales of fertilizers to FSA. The recovered fund will contribute to the implementation of safety nets programs to be designed under component Implementation of activities under component 2: Capacity-building activities under Component 2 will require a longer implementation period than Component 1.CCA will be responsible for implementation of such activities, which include inter alia hiring of consultants, covering operating cost, and conducting stakeholder consultation for improving the monitoring of food security, designing and implementing safety nets programs, supporting the restructuring of agricultural input market system, upgrading CCA and CA financial management systems. 45. Upon grant effectiveness and no later than August 15, 2008, CCA and CA will prepare a detailed work plan covering the project eighteen month timeframe, along with a financial plan and the updated procurement plan. 34

43 Annex 7. Project Preparation and Appraisal Team Members Niger Emergency Food Security Support Project (FPCR TF) Name Title Unit El Hadji Adama Tour6 Sr. Agricultural Economist (Task Team Leader) AFTAR Amadou Alassane Joelle Dehasse Mamadou Yaro Trichur K. Balakrishnan Luis Schwarz Amadou Ibrahim Ibrah Rahmane Sanoussi Irina Luca Eric jean YobouC T. Mpoy-Kamulayi Amadou Konare Gilles Marie Veuillot Setareh Razmara Carlo del Ninno Hadidia Djimba Sr. Agriculture Services Specialist Sr. Operation Officer Sr. Financial Management Specialist Lead Financial Management Specialist Senior Finance Officer Sr. Economist Procurement Specialist Lead Procurement Specialist Sr. Procurement Specialist Lead Counsel Sr. Environmental Specialist Sr. Counsel Lead Social Protection Specialist Economist Principal Team Assistant AFTAR AFCCI AFTFM AFTFM LOAFC AFTP4 AFTPC AFTPC AFTPC LEGAF AFTEN LEGAF AFTH2 AFDSN AFMNE Elisabeth Mekonnen Language Program Assistant AFTAR 35

44 Key Development Indicators (2006) Population, mid-year (millions) Surface area (thousand sq. km) Population growth (Oh) Urban poptilation (% of total population) Niger , sub- Saharan Africa , Low income 2,403 29, I Age distribution, 2006 Male Female GNI (Atlas method, US$ billions) GNI per capita (Atlas method, US$) GNI per capita (PPP, international $) ,032 1, ,698 GDP growth (%) GDP per capita growth (%) (most recent estimate, ) Poverty headcount ratio at $1 a day (PPP, %) Poverty headcount ratio at 52 a day (PPP, Sa) Life expectancy at birth (years) Infant mortality (per 1,000 live births) Child malnutrition (% of children under 5) Adult literacy, male (% of ages 15 and older) Adult literacy, female (% of ages 15 and older) Gross primary enrollment, male (% of age group) Gross primary enrollment, female (Oh of age group) 61 a Under-5 mortality rate (per 1,000) Access to an improved water source (% of population) Access to improved sanitation facilities (% of population) Niger Sub-Saharan Africa Net Aid Flows (US$ millions) Net ODA and official aid Top 3 donors (in 2005): France United States Germany IIjT Growth of GDP and GDP per capita (%) Aid (% of GNI) Aid per capita (US5) I 0 Long-Term Economic Trends Consumer prices (annual % change) GDP implicit deflator (annual % change) &GDP - GDP per capita Exchange rate (annual average, local per US$) Terms of trade index (2000 = 100) Population, mid-year (millions) GDP (US5 millions) Agriculture Industry Manufacturing Services , ,481 1,798 (% of GDP) , (average annual growth %) Household final consumption expenditure General gov't final consumption expenditure Gross capital formation Exports of goods and services 1mpOrt.S Of goods and ServiceS Gross savings Note: Figures in italics are for years other than those specified data are preliminary... indicates data are not available. a. Country poverty estimate is for earlier period. b. Aid data are for Development Economics, Development Data Group (DECDG).

45 Niger Balance of Payments and Trade (US$ miilions) Total merchandise exports (fob) Total merchandise imports (ci9 Net trade in goods and services Current account balance as a Yo of GDP Qovernance indicators, ZOO0 and 2006 Voice and accountability Political stability Regulatory quality Workers' remittances and compensation of employees (receipts) Rule of i w Contmi of corruption Reserves. including gold Central Government Finance Country's percentile rank (0-400) hlgher values imply bsner relrngs (% of GDP) Current revenue (including grants) Tax revenue Current expenditure Overaii surplus/deficit Highest marginal tax rate (Oh) Individual corporate External Debt and Resource Flows (US$ millions) Total debt outstanding and disbursed Total debt service Debt relief (HIPC, MDRI) , Technology and Infrastructure zoo Paved roads (% of total) Fixed line and mobile phone subscribers (per 1,000 people) 2 23 High technology exports (% of manufactured exports) Environment Agricultural land (% of land area) Forest area (% of land area) Nationally protected areas (% of land area) 7.7 Total debt (% of GDP) Total debt service 1% of exports) Freshwater resources per capita (cu. meters) Freshwater withdrawal ( Oh of internal re sou^) 62.3 Foreign direct investment (net inflows) Portfolio equity (net inflows) omposltlon of total external debt, 2006 IBRD, 0 IDA' la C02 emissions per capita (mt) GDP per unit of energy use (2000 PPP $ per kg of oil equivalent) Energy use per capita (kg of oil equivalent) (US$ mrliions) IBRD Total oebt outstanding and oisdurseu - 0 Disbursements - 0 Prinapal repayments." 0 Interest payments - 0 Private Sector Development Time required to start a business (days) Cost to start a business (Oh of GNi per capita) Time required to register property (days) Ranked as a major constraint to business (Oh of managers surveyed who agreed) Tax rates Anticompetitive or informal practices Stock market capitalization (% of GDP) Bank capital to asset ratio (%) zoo0 ZOO Portfolio sales, prepayments and repayments for IFG awn acccunt 0 0 MIGA Gross exposure - - NEW guarantees - 9-rl%l' &*A%\... Note: Figures in italics are for years other than those specified data are preliminary... indicates data are not available. - indicates observation is not applicable. 3/21/08 Development Economics. Development Data Group (DECDG) 37

46 I.. I Millennium DeveloDment Goals Niger With selected targets to achieve between 1990 and 2015 (estimate closest to date shown, +/- 2 years) Goal 1: halve the rates for $1 a day poverty and malnutrition Poverty headcount ratio at $1 a day (PPP, % of population) Poverty headcount ratio at national poverty line ( 10 of population) Share of income or consumption to the poorest qunitiie ( YO) Prevalence of malnutrition (% of children under 5). II _ _ Goal 2: ensure that children are able to complete primary schooling Primary school enrollment (net, %) Primary completion rate ( YO of relevant age group) Secondary school enrollment (gross, %) Youth literacy rate (% of people ages 15-24) - ~ I_ ~ a ultural employment) Infant mortality rate (per 1,000 lite births) Measles immunization (proportion of one-year olds immunized, %) Goal 5: reduce maternal mortality by three-fourths Maternal mortality ratio (modeled estimate, Der 100,000 live births) f,600 Births attended by skilled health staff (% of total) Goal 6: halt and begin to reverse the spread of HIV/AIDS and other major diseases Prevalence of HIV (% of population ages 15-49) Contraceptive prevalence (% of women ages 15-49) Incidence of tuberculosis (per 100,000 people) Tuberculosis cases detected under DOTS ( YO) --.I Goal 7: halve the proportion of people without sustainable access to basic needs Access to an improved water source ( YO of population) Access to improved sanitation facilities (% of population) Forest area ( YO of total land area) Nationally protected areas (% of total land area) C02 emissions (metric tons per capita) GDP per unit of energy use (constant 2000 PPP $ per kg of oii equivalent) Internet users her oeodle\ Personal comduters (per 1,000 people) Youth unemployment (% of total labor force ages 15-24) iducation indicators ( h) too Measles immunization (% of I-year olds) loo 1 CT indicators (per 1,000 people) Primary net enrollment ratio -43- Ratio of girls to boys in primary & secondary education 1990 I Niger Sub-Saharan Africa c3 Fixed + mobile subscribers %l Internet users Note: Figures in italics are for years other than those specified... indicates data are not available. 3/21/08 Development Economics, Development Data Group (DECDG).