Name: CABINDA PROVINCE AGRICULTURE DEVELOPMENT STUDY
Approval date: 22-Dec-2014
Task Manager: AGBOMA Patrick Chukuka, RDGS4
Total cost: 444445 Currency: UAC
Source(s) of financing Government: 24400 MICF: 420045
Implementing Agency: GOUVERNEMENT DE LA REPUBLIQUE D ANGOLA MINISTERE DES FINANCES
Location: Cabinda Province
The study will be undertaken as part of a project cycle pre-investment activity aimed at providing both the Government and the Bank with information and analytical pieces of work leading to a project preparation report. The analytical work (agro-industry potential;marketing prospects; value addition) will also assist to underpin the Bank's project pipeline development in Cabinda Province.
The study will be focused on the agriculture sector (rural infrastructure; agricultural water resources; irrigation development;commercial aquaculture development; forestry management; inland fisheries; livestock production; horticulture promotion; and apiculture promotion). It will also deal with rural farmer institutions, namely feeder roads, market centers, rural energy access, farmer cooperatives, women groups, micro-finance institutions etc.); and serve to identify existing gaps (for instance, policy, institutional, information and technology) in the related sectors which when filled will further support the development of a consolidated agricultural development plan for Cabinda Province. The study will take a comprehensive approach to rural development and define effective mechanisms for sustainable development in the regional context using a participative approach that will involve farmers and institutions. The study will evaluate current information generation, determine gaps in the information generation and propose ways to improve the situation. The study will generate data related to potential direct and indirect beneficiaries by gender, age, educational attainment, and other relevant criteria. This is a very important dimension in readiness review and collecting such information at this stage would aid in quality at entry of potential investment proposals. The study will strive to do the following: "undertake a holistic and in-depth review of the rural economy and agriculture sector performance in Cabinda Province, with the aim of critically identifying challenges and potentials for increased agricultural productivity (for crops, livestock, fisheries); value chain addition, employment creation; and export potential. "review the status of agricultural marketing infrastructure (market centers; processing activities and zones; product storage; potable water and sanitation; feeder roads; abattoirs, dairy and milk centers, vet clinics, livestock markets, quarantine and check points, etc) with a view to identifying critical high poverty impact areas/actions for possible project intervention; "examine the state of the current irrigation schemes and advise (technical, financial and institutional) on ways and modalities on how such irrigation schemes could be brought to full use; "produce a preparation report for an agricultural investment operation focusing on rural infrastructure, water control (irrigation), value addition/post-harvest loss reduction and natural resource management; "prepare Environmental Impact Assessments and Mitigation Plans for selected areas if necessary; "prepare tender documents; and "prepare detailed engineering designs for the civil infrastructure identified. The major points of analysis of the study will include: "establishment and/or strengthening of farmers' organizations (such as water users associations, cooperatives, rural finance institutions, women farmer groups etc) for farmers' involvement in projects design and implementation; "identification and incorporation of gender aspects, in order to ensure women's influence in project design and their stand as decision makers and beneficiaries; "identification and evaluation of options in terms of rehabilitation or construction of new irrigation and drainage infrastructure; "promotion of funding for activities related to extension and generalization of locally adapted technology packages, training of farmers and field staff in on-farm water management, and establishment of institutional mechanisms to ease access to credit and rural finance; "encouraging Institutional and legislative reform, through review of consistency of respective Governments' policies towards rural development, with respect to subsidies, tariffs, trade restrictions amongst countries, incentives; "conducting capacity building needs assessment; and "assessment of environmental and social projects implications and thorough evaluation of upstream and downstream impacts, costs and benefits. The study will pay special attention to the following concerns, some of which are lessons that were learned from with Bank projects as well as with projects funded by other donors: "detailed engineering design and preparation of bidding documents are done during the project implementation phase; as a consequence, disbursement is slow at the onset of project implementation; "project designs will require very careful preparation and planning by multi-disciplinary teams in order to grasp adequately the regional character. Serious examination of social, institutional, environmental and trans-boundary aspects should be made in addition to engineering factors; "the design of crop and livestock as well as fisheries production systems and marketing must be appropriate to the agricultural and social systems considered; and "the key parameters used in cost-benefit analysis for options analysis must be realistic and based on practical experience. Particular attention must be given to estimates of water production, crop yields and commodity price forecasts. Risk assessment and sensitivity analysis are needed to ensure that forecasts are not too optimistic and thus likely to engender failure.
The study will identify existing gaps to fill in the development of a consolidated agricultural development plan for Cabinda Province. The proposed CIADP will also complement the Government of Angola's effort in diversifying its economy, increasing agricultural productivity, reducing poverty and encouraging local economic development.
It is noteworthy that the Bank Group has not carried out an agriculture sector review in Angola since the Bank Group commenced operations there in 1980. The Country Strategy Papers (CSPs) of 2005 and 2010 were essentially country reviews which focused on economic and social developments in Angola, the Government's development agenda and Bank Group lending program. The Bank is yet to carry out sector diagnostic studies, of which the one proposed herein would set the benchmark. In view of its middle-income status (with a per capita GDP greater than USD5,900) there has been a shift from grants to loans. Moreover, the country has limited capacity to collect and collate data and information. This has made it increasingly difficult to access veritable information and data to support decision and project preparation.Disaggregated data and basic statistics for development indicators are also difficult to obtain to evaluate the impact of past interventions and guide dialogue with the Government and other development partners. Given the nature and magnitude of poverty in Cabinda Province and the potential the agriculture sector has for income enhancement and job creation, the opportunity has presented itself to the Bank Group to finance a pre-investment study that will lead to the preparation of the Cabinda Integrated Agricultural Development Project. The Revised Guidelines for the Administration and Utilization of the Technical Assistance Fund for Middle Income Countries (ADB/BD/WP/2005/90, the Guidelines) allow the resources of the Fund to be used to finance project studies as part of a greater economic sector work, especially as they contribute to the build-up of the country pipeline of projects. The proposed Cabinda Province Agriculture Development Study meets these criteria.