Farm Income Enhancement and Forest Conse


Overview

  • Reference: P-UG-AAD-001
  • Approval date: 20/01/2016
  • Start date: 12/04/2016
  • Appraisal Date: 05/09/2015
  • Status: OngoingOnGo
  • Implementing Agency: MINISTRY OF WATER & ENVIRONMENT
  • Location: THIRTY NINE DISTRICTS

Description

The proposed second phase FIEFOC-2 intends to consolidate and expand the achievements gained in the first phase and to address gaps and emerging issues. The second phase will address issues in a holistic manner, i.e., irrigation and apiculture development with watershed management and forest conservation to sustain agriculture production for enhancement of household incomes: The project has the following four components.

(i) Agriculture Infrastructure Development: comprising 5 Small/Medium Scale Irrigation schemes with a total of 4038 ha located in five districts namely: Nebbi, Oyam, Butaleja, Kween, and Kasese. Access roads construction on bad sections of roads to link the irrigation schemes with the nearest road network. Establishment of meteorological stations for systematic irrigation scheduling in each of the proposed irrigation schemes. Farmers will be supported to organize themselves into Water Users' Associations (WUAs) in each of the schemes and encourage them to promote marketing that will enhance their price bargaining ability for their produce including accessing other services. Training will be provided to farmers in crop management, soil fertility management to increased annual household incomes from vegetables, fruits; rice and other crops.

ii) Agribusiness Development: This will aim to increase the business outlook of the potential beneficiaries toward increasing household incomes. The component will comprise of: Agribusiness development for climate smart livelihoods aquaculture (Fisheries), Apiculture (Honey production), seedling production, crop intensification, etc. Business skills development especially among youths (capacity development, market development, cooperative development, facilitate access to finance). Youths in Agribusiness development pilot activity; Recruitment of anchor institution for the pilot activity; oproposals in Newspapers from youths in agribusiness; oSelection and methodology workshop for potential awardees Incubation period/training for awardees; oGraduation of awardees to start their agribusinesses; and oRoutine monitoring and evaluation, including on-site visits

iii) Integrated Natural Resources Management: This component aims to improve the livelihood of people living in the catchment area as well as to promote the sustainable development of the watersheds' resource base through an integrated watershed management (IWSM) to deal with complex natural resources management issues (such as land degradation, climate change, deforestation, and unsustainable farming practices). The component will consist of the following sub-components: "Integrated Soil and Water Conservation/Management; "Sustainable forest management; "Capacity Development (gender responsive). This component is mainly supported by Nordic Development Fund with a grant of USD 5.6 million together with the youth in agri-business pilot under component 2.

(iv) Project Coordination and Management: Project Coordination, including the setting up of coordinating unit in the Ministry of Water, Lands and Environment (MWLE), and the establishment of Project Support Teams as appropriate to monitor and supervise project implementation in Districts. In addition will have the following tasks: "Coordinate activities of the MoWE and MAAIF through an appropriate Steering Committee. "Coordinate Monitoring, Evaluation and Reporting activities. "Coordinate Financial Management processes and also ensure preparations for External Audits. "Facilitate Procurement processes. "Mainstream Gender and also facilitate HIV/AIDS Awareness raising


Objectives

The project objective is to improve household incomes, food security, and climate resilience through sustainable natural resources management and agricultural enterprise development


Rationale

The proposed Farm Income Enhancement and Forest Conservation Project 2 is aimed at increasing incomes and improving the quality of life of poor subsistence farmers and their household. The project is designed to assist the GoU increase the area under irrigated agriculture. With effects of climate change and the increasingly unreliable rainfall pattern, the need for investment in irrigation has become of paramount importance. Only about 5% of the irrigation potential of Uganda has been exploited so far and the GoU has requested the Bank to support its renewed efforts to expand its irrigation investments. The GoU has developed an Irrigation Master Plan for the period 2010-2035 which targets to expand irrigation infrastructure to cover at least 70% of surface water irrigation potential by 2035. This will increase the total agricultural land under irrigation from the current 14,418ha to about 420,000ha by 2035. As a result, the GoU has ranked irrigation as the third most important infrastructural investment that will facilitate economic transformation of the country as envisaged under Vision 2040.

The project therefore aims to ensure food security, provide gainful employment and promote sustainable use and management of natural resources. The project design is hinged on community-based development, with the districts and sub-counties as focus of implementation, and the private sector as main technical service providers. The project will direct its efforts towards using small and medium scale irrigation facilities and improved soil fertility management practices, to produce and market high value crops. This will be complemented with improved agricultural marketing. In addition, the Project will conserve and protect the environment through strengthening watershed management using well established structures at national, district, sub-county, village/community levels. It will mitigate deforestation and problems of natural resources degradation in the catchment area. This will lead to the long-term improvement to the environment and sustainability of the income enhancement interventions. Forestry development will also contribute towards income enhancement and poverty reduction through tree planting, promotion of apiculture and creating alternative livelihoods. Training and improvement in institutional capacity, monitoring of effects and outcomes will sustain project outputs. Community-based approach will be required to mobilize local acceptance of the need for irrigated agriculture and watershed management as the starting point for developing solutions that will address poverty, in a holistic manner.

The proposed project components have been chosen to address issues of sustainable natural resource management, income through private forestry and the fuel wood shortage. Small-scale irrigation development is included to make better use of the existing water resources and to address crop failures due to the occurrences of dry spells at critical periods of crop development. Apiculture is included to increase household economic returns from conservation-orientated tree planting. The agricultural marketing component is included to enable smallholder farmers to compete effectively by adopting best farming and marketing practices, and to enhance the supply chain organization and the provision of support services. The soil fertility improvement initiatives will address the restoration, management and improvement of soils presently under cultivation


Benefits

The small holder farmers who used to depend on rainfall will benefit from having two or three crops per year from the irrigated agriculture which will translate into financial benefits at the farm level. As the project is also addressing conservation through tree planting and watershed management, and most of the investments are geared towards long-term development of human capital in agriculture. Under the schemes, average annual household returns will increase a number of households benefiting directly at the project full development. It is also assumed that following introduction of soil fertility management practices, yields on typical crops will increase. Crop yields arising from improved soil fertility management and land conservation practices combined, are expected to significantly increase annually from the present levels. The target beneficiaries shall be both public and private institutions and individuals associated with the sector. The total population of the 5 districts, based on the 2014 census, is about 1,813,756, 51.7% of whom are women. This population corresponds to about 386,543.8 households. Main target beneficiaries are farmers cultivating rice, cotton, and horticultural crops. According to the Socio-Economic Gender Disaggregated Profile conducted by the Feasibility Study, about 155,108 farmers from the irrigation schemes will benefit directly of which about 51% are women.

The natural resources management Component will be implemented in 39 districts of hot-spot areas and will provide direct benefits to 300,000 households. These districts are located within the watersheds of the river systems feeding the irrigation schemes. The interventions will target selected areas within the watershed depending on the level of deforestation, status of environmental degradation, degraded lands, and degree of bank erosion. Beneficiaries will include communities living in degraded lands, farmers adopting agro-forestry practices, conservation farming, and agribusiness development as well as service providers and Ministry staff who will be trained on sustainable conservation and tree planting practices. The Agribusiness component will create about 1000 alternative livelihood opportunities in addition to the 1400 participants in business skills development programme


Key contacts

LOULSEGED Mekonnen Kifle - RDGE4


Costs

Finance source Amount
ADBUSD 54,413,371
GovernmentUSD 6,477,107
Co-financierUSD 3,972,815
DeltaUSD 108
TotalUSD 64,863,185