FOR OFFICIAL USE ONLY - World Bank

[Pages:121]Public Disclosure Authorized

Public Disclosure Authorized

FOR OFFICIAL USE ONLY

Report No: PCBASIC0083393

INTERNATIONAL DEVELOPMENT ASSOCIATION

PROJECT APPRAISAL DOCUMENT ON A

PROPOSED CREDIT

IN THE AMOUNT OF US$25 MILLION

TO THE REPUBLIC OF LIBERIA

FOR A

SMALLHOLDER AGRICULTURE TRANSFORMATION AND AGRIBUSINESS REVITALIZATION PROJECT

Agriculture Global Practice Africa Region

December 14, 2018

Public Disclosure Authorized

Public Disclosure Authorized

This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board considerations and the updated documents will be made publicly available in accordance with the Bank's policy on Access to Information.

CURRENCY EQUIVALENTS

(Exchange Rate Effective October 31, 2018)

Currency Unit =

Liberian Dollar (LRD)

LRD 159.4= US$1

FISCAL YEAR January 1?December 31

Regional Vice President: Hafez M. H. Ghanem Country Director: Henry Kerali

Senior Global Practice Director: Juergen Voegele Practice Manager: Marianne Grosclaude

Task Team Leader(s): Abimbola Adubi, Adesimi Freeman

AfT BDSP C4D CDA CPF ECOWAS EFA EIRR ESMF EU EX-ACT FBO GBV GDP ICT IDA IDH IEG IFAD IFC IFR LACF LASIP LATA MIS MoA MoCI M&E NGO NPK NPV PAD PAPD PDO PIM PIU PMU PPSD REDD+ SCD

ABBREVIATIONS AND ACRONYMS

Agenda for Transformation Business Development Service Providers Communication for Development Cooperative Development Agency Country Partnership Framework Economic Community of West African States Economic and Financial Analysis Economic Internal Rate of Return Environmental and Social Management Framework European Union Ex-Ante Carbon-Balance Tool Farmer-Based Organization Gender-Based Violence Gross Domestic Product Information and Communication Technology International Development Association (of the World Bank Group) Iniciativa de Com?rcio Sustent?vel (Sustainable Trade Initiative) Independent Evaluation Group International Fund for Agricultural Development International Finance Corporation (of the World Bank Group) Interim Financial Report Liberia Agriculture Commercialization Fund Liberia Agriculture Sector Investment Plan Liberia Agricultural Transformation Agenda Management Information System Ministry of Agriculture Ministry of Commerce and Industry Monitoring and Evaluation Nongovernmental Organization Nitrogen, Phosphorus, and Potassium Net Present Value Project Appraisal Document Pro-Poor Agenda for Prosperity and Development Project Development Objectives Project Implementation Manual Project Implementation Unit Program Management Unit Project Procurement Strategy for Development Reducing Emissions from Deforestation and forest Degradation Systematic Country Diagnostic

SDR SEA SIDA SME SORT STAR-P

STEP STCRSP USA WAAPP WAATP WBG WP WOP

Special Drawing Rights Sexual Exploitation and Abuse Swedish International Development Cooperation Agency Small and Medium Enterprises Systematic Operations Risk-Rating Tool Smallholder Agriculture Transformation and Agribusiness Revitalization Project Systematic Tracking of Exchanges in Procurement Smallholder Tree Crop Revitalization Support Project United States of America West Africa Agriculture Productivity Project West Africa Agricultural Transformation Project World Bank Group With Project Without Project

The World Bank

Smallholder agriculture Transformation and Agribusiness Revitalization Project (STAR-P) (P160945)

M TABLE OF CONTENTS

DATASHEET .................................................................................Error! Bookmark not defined. I. STRATEGIC CONTEXT ...................................................................................................... 1

A. Country Context ............................................................................................................................ 1 B. Sectoral and Institutional Context ................................................................................................ 2 C. Relevance to Higher-Level Objectives........................................................................................... 6 II. PROJECT DESCRIPTION.................................................................................................... 7 A. Project Development Objective .................................................................................................... 7 B. Project Components ..................................................................................................................... 8 C. Project Beneficiaries ................................................................................................................... 17 D. Theory of Change ........................................................................................................................... 17 E. Rationale for World Bank Involvement and Role of Partners..................................................... 18 F. Lessons Learned and Reflected in the Project Design .................................................................... 19 III. IMPLEMENTATION ARRANGEMENTS ............................................................................ 21 A. Institutional and Implementation Arrangements .......................................................................... 21 B. Results Monitoring and Evaluation Arrangements......................................................................... 22 C. Sustainability................................................................................................................................... 23 D. Climate change and disaster risk screening, climate co-benefits, and greenhouse gas accounting. ........................................................................................................................................................... 24 IV. PROJECT APPRAISAL SUMMARY ................................................................................... 26 A. Economic and Financial Analysis................................................................................................. 26 B. Technical ..................................................................................................................................... 27 C. Fiduciary ...................................................................................................................................... 28 D. Safeguards................................................................................................................................... 30 V. KEY RISKS ..................................................................................................................... 34 VI. RESULTS FRAMEWORK AND MONITORING ................................................................... 39 ANNEX 1: Detailed Project Description................................................................................. 51 ANNEX 1.1: Summary of the Agriculture Commercialization and Agribusiness Sector Scan ... 69 ANNEX 2: Implementation Arrangements and Support Plan................................................. 75 ANNEX 3: Fiduciary Arrangements ....................................................................................... 79 ANNEX 4: Economic and Financial Analysis .......................................................................... 86 ANNEX 5: Climate Change Co-Benefits Analysis and Proposed Mitigation and Adaptation Approaches ......................................................................................................................... 97

The World Bank

Smallholder agriculture Transformation and Agribusiness Revitalization Project (STAR-P) (P160945)

ANNEX 6: Summary of Gender Assessment and Implications for STAR-P ............................ 102 ANNEX 7: Summary of Lessons Learned and Reflected in the Project Design ...................... 105 ANNEX 8: Map of Liberia ................................................................................................... 108

Figures Figure 1: STAR-P Theory of Change ...................................................................................................... 18

Tables Table 1: Target Counties and Value Chains................................................................ 9 Table 2: Project Support for Institutional Strengthening of Government .............. 11 Table 3: Matrix of Matching Grants Windows ........................................................... 13 Table 4: Safeguard Policies Triggered by the Project.............................................. 30 Table 5: Systematic Operations Risk Rating ............................................................ 34 Table 6: Summary of Risks and Mitigation Measures .............................................. 34

The World Bank

Smallholder agriculture Transformation and Agribusiness Revitalization Project (STAR-P) (P160945)

DATASHEET

BASIC INFORMATION BASIC_INFO_TABLE Country(ies) Liberia Project ID P160945

Project Name

Smallholder Agriculture Transformation and Agribusiness Revitalization Project (STAR-P)

Financing Instrument

Investment Project Financing

Environmental Assessment Category B-Partial Assessment

Financing & Implementation Modalities [ ] Multiphase Programmatic Approach (MPA) [ ] Series of Projects (SOP) [ ] Disbursement-linked Indicators (DLIs) [ ] Financial Intermediaries (FI) [ ] Project-Based Guarantee [ ] Deferred Drawdown [ ] Alternate Procurement Arrangements (APA)

[] Contingent Emergency Response Component (CERC) [] Fragile State(s) [ ] Small State(s) [ ] Fragile within a non-fragile Country [] Conflict [ ] Responding to Natural or Man-made Disaster

Expected Approval Date 10-Jan-2019 Bank/IFC Collaboration Yes

Expected Closing Date 30-Nov-2024 Joint Level Complementary or Interdependent project requiring active coordination

Proposed Development Objective(s)

The development objective is to increase agricultural productivity and commercialization of smallholder farmers for selected value chains in selected counties of Liberia.

pg. i

The World Bank

Smallholder Agriculture Transformation and Agribusiness Revitalization Project (STAR-P) (P160945)

Components

Component Name Institutional Capacity Building and Strengthening Enabling Environment for Farmers, State, and non-State Actors

Enhancing Productivity and Competitiveness

Project Management, Monitoring and Evaluation, Citizens Engagement and Contigency Emergency

Organizations

Borrower: Implementing Agency:

Ministry of Finance and Development Planning Ministry of Agriculture

Cost (US$, millions) 5.00

16.25 3.75

PROJECT FINANCING DATA (US$, Millions)

SUMMARY -NewFin1

Total Project Cost Total Financing

of which IBRD/IDA Financing Gap

DETAILS -NewFinEn h1 World Bank Group Financing International Development Association (IDA) IDA Credit

IDA Resources (in US$, Millions)

Credit Amount

Grant Amount

25.00 25.00 25.00 0.00

25.00 25.00

Total Amount

pg. ii

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