MIC TAF GRANT YOUTH IN AGRIBUSINESS AND AGRICULTURE COMMODITY CORRIDORS
- Reference: P-ZM-AA0-026
- Approval date: 26/04/2016
- Start date: 06/12/2016
- Appraisal Date: 13/02/2016
- Status: OngoingOnGo
- Implementing Agency: MINISTRY OF AGRICULTURE - WATER DEVELOPMENT
- Location: Zambia - 4 Provinces
Description of Preparatory Activities (Preamble): The Consultancy (Consulting Firm) will carry out Feasibility Study including the Strategic Environmental and Social Impact Assessment (SESIA), in line with the approved Terms of Reference (ToRs). As part of capacity building, 2 Government counterpart staff will be attached to the Consultant and be provided with on-the-job training in order to improve their knowledge and skills in design of the proposed Programme. The Grant activities will be implemented in 2 components, namely, Component 1 "Feasibility Study" and Component 2 "Study Coordination".
Component 1 Feasibility Study. Phase 1 Pre-feasibility Study (Preliminary Assessment): This phase will commence with "Inception Stage" which will mainly consist of desk study and extensive consultations, facilitation of "2-day National Stakeholders' Workshop", and selection, together with Government, of one agricultural growth corridors including Programme Districts with the aim of producing an inception report. With respect to ToRs, in summary, the consultancy activities will include baseline socio-economic survey, engineering surveys and designs, Bill of Quantities (BoQs) and Tender documents, identification and development of institutional and financing models for commercial cash cropping and complementary livelihood enterprises, agronomic study including crop production gap analysis, various technical assessments, Private Sector analysis, entrepreneurs/investors analysis, commercial/marketing analysis, commodity value chain analysis, institutional and management assessment, policy assessment, legal assessment, gross margin analysis, gender analysis (gender equality and gender gap analysis), food and nutrition security analysis, financial and economic analysis. During field operations, the Consultant will facilitate Provincial Stakeholders workshop at the end of Provincial-level activities. The SESIA will be carried out to provide (a) desirable safeguards and mitigation measures, and (b) guide the environmental and climatic change categorisation of the proposed Programme. The Consultant will produce a Pre-feasibility Study Report which will be discussed at a 2-day National Stakeholders' workshop whose resolutions will inform the detailed Feasibility Study.
Phase 2 Feasibility Study (Detailed Assessment): The Consultant will carry out detailed assessment of Phase 1 agreed activities and incorporate stakeholders' workshop resolutions, and environmental and social issues in the final design of the proposed Programme. The Consultant will compile and submit separate
(i) Feasibility Study Report and
(ii) SESIA Report and summary.
Component 2 - Study Coordination: The Ministry of Agriculture (MoA) will be the Executing Agency (EA) with overall responsibility for implementation of the proposed activities including operational issues. The Director of Policy and Planning (MoA) will be in charge of study-implementation which will be monitored by the Government Technical Team, with membership from all the participating 5 Ministries (MoA; Ministry of Finance; Ministry of Livestock and Fisheries; Ministry of Commerce, Trade Industry; and Ministry of Lands, Natural Resources and Environmental Protection) and IAPRI. The Cabinet Office (Private Sector Development, Industrialisation and Job Creation Secretariat) is currently responsible for coordinating, monitoring and evaluating the implementation of "National Strategy on Industrialisation and Job Creation" and will liaise with the Ministry of Finance and MoA to provide a coordinating or steering role. In terms of quality control, the Bank has established multi-disciplinary Technical Team which will review all the study documents submitted by the Consultant, through the EA. The Bank's Technical Team will work with the Government Task Team. During implementation, no separate Supervision Missions will be scheduled for study activities, but the Bank staff will monitor the activities when supervising other Projects in Zambia. The EA will submit quarterly implementation progress reports (IPRs), using the Bank format. At the end of implementation, the Bank and EA will prepare a completion report in order to evaluate the impact of the Grant, highlight lessons learned and expected outcomes.
The main expected outputs include: (a) Inception Report, Pre-feasibility Report and Feasibility Study Report which will cover all aspects of the Terms of Reference and will be the basis for preparation of a bankable Programme, with a current estimated investment cost of more than USD 100 million; (b) SESIA Report which will provide an assessment of the environmental and social risks associated with the proposed Programme. The SESIA findings and recommendations will be shared with the infrastructure design team, for incorporation into the Programme design; and (c) Stakeholders' Workshop Reports which will highlight resolutions, commitment and undertakings by key stakeholders.
The total Proposal cost is estimated at UA 833,000, net of taxes and duties, of which UA 735,517 (93.1%) is in foreign cost and UA 97,483 (6.9%) in local cost. The cost estimates include 5% of contingency on the amount to be financed by the MIC-TAF Grant. Out of the Proposal's total cost of UA 833,000, the contribution of the Bank's MIC-TAF Grant is UA 790,000 (94.8%), covering the Consultant's remuneration (professional fees), reimbursable costs, audit services (outsourced), and some local operating costs. The Government counterpart contribution is UA 43,000 (5.2%) covering local operating costs. The total operating cost is UA 97,483 comprising (a) MIC TAF Grant operating costs (UA 54,483) for counterpart Government staff expenses (field activities related to the study), to be administered through the existing national accounting procedures, and (b) Government contribution (UA 43,000) which will cover existing Government staff salaries, office space and utilities.
Mode of Procurement of Services: A General Procurement Notice (GPN) will be agreed upon with the Government and will be issued for publication in AfDB and UN-Development Business (UNDB) websites. All acquisition of consulting services financed by the Bank will be in accordance with "Procurement Policy for Bank Group funded Operations, approved in October 2015" using the relevant Bank's Standard Bidding Documents. The recruitment procedure will be on the basis of a shortlist of Consulting Firms in line with the Quality Cost Based Selection (QCBS) method. The expenses for national and provincial stakeholders' workshops, vehicle hire and running cost will be covered under the Services (reimbursable expenses). If the Office of Auditor General (OAG) decides to outsource the audit services due to capacity constraints or otherwise, the procurement process will be through the Least Cost Selection (LCS) method. The MoA, as the EA, will have the overall responsibility for procurement management. To meet the objective of the Bank's new procurement policy, the Bank carried out an assessment of the MoA's procurement capacity and noted that it has adequate capacity in procurement management and is currently managing several Bank financed projects.
June 2018 Implementation Status Disbursement Rate 32.92% (UA 260,078.54) MIFC TAF GRant
The Government already signed a contract with the Consulting Firm (DARASHAW and Company Private Limited in association with KCM Green Ltd) on 6th October 2017. Contract amount/sum = USD 979,992 (Remuneration USD 486,860 and Reimbursable expenses USD 493,132). Payment Schedule: 1st payment - 10% of contract sum, upon signing the contract (6th February 2018). 2nd payment - 20% of contract sum, upon submission of acceptable final pre-feasibility study report (2 months, after signature). 3rd payment - 30% of contract sum, upon submission of acceptable draft feasibility study report and preliminary designs (6 months, after signature). 4th payment - 30% of contract sum, upon submission of acceptable feasibility study report (7 months, after signature). 5th and final payment - 10% of contract sum, upon submission of acceptable final designs, tender documents and ESIA report (8 months, after signature).
The Consulting Firm has already produced and submitted, to the Government, the Inception Report (October 2017), Pre-feasibility Study Report (February 2018) and draft-Feasibility Study Report (March 2018). The final Feasibility Study Report including engineering designs and Environmental and Social Impact Assessment (ESIA) report will be submitted by 31st July 2018.
The Feasibility Study objective is to design and prepare a good quality and bankable "Youth in Agri-business and Agriculture Commodity Corridor Programme". The development goal of the proposed "USD 100 million Youth in Agri-business and Agriculture Commodity Corridor Programme" is to contribute to poverty reduction, economic growth and export diversification through increased youth participation in agri-business, and development of functional agricultural commodity corridors.
SILUNGWE Yappy Gregory - RDGS4