Implementing Agency: MINISTRY OF FINANCE AND NATIONAL PLANNING
The objective of the project is to foster sustained economic growth, reduce poverty and enhance food security through strengthening the adaptive capacity of 800,000 farmers to better respond to current climate variability and long-term consequences of climate change in the Kafue sub-basin
The Project focuses on three areas of interventions: (i) agricultural production systems emphasizing diversification in agriculture and natural resources technological innovations at the community level; (2) rural infrastructure development with a focus on applying design parameters and codes to enable the infrastructure withstand floods and drought, and (3) institutional support and capacity building focusing on institutional strengthening at the local level.Component 1: Community-Based Participatory Adaptation (US$ 19 million grant) 1.2 The objective of this component is to strengthen the adaptive capacity of poor rural communities and natural resources based production systems (eco-systems) that are vulnerable to the impacts of climate change in the Kafue Basin. It would support community based adaptation initiatives which will be selected by communities through a demand-driven process facilitated by non-governmental organizations (NGOs) working in partnership with the local government. It comprises three (3) sub-components. Sub-component 1.1: Integrated Community-Based Adaptation (US$ 16 million grant) will support three (3) areas of intervention: (i) Community-Level Infrastructure Projects will be identified and upgraded to withstand severe floods or droughts, while opening up opportunities that will stimulate entrepreneurship and bolster income generation activities for the communities. Activities will include micro-Projects for flood control and diversion structures, small scale irrigation schemes, small scale water reservoirs and small dams, de-silting and restocking ponds and water bodies, improved wells and boreholes, community forest plantation and reforestation, wildlife estates and communal game ranches. The works for these micro-Projects shall be financed either through contractors or through labor provided by communities. (ii) Farm-Level Support Systems will be identified and wealth ranking used to identify beneficiaries of farm level support systems including conservation agriculture training and inputs, soil moisture and fertility management, seeds for drought and flood resistant crop varieties for crop diversification, seedlings for fruit orchards, livestock and fisheries for diversification of farming systems, erosion control and improved grazing activities as well as value addition investments. The participating non- governmental organization (NGO) shall produce plans that itemize the quantities of each of these support systems and the number of beneficiaries required. (iii) Matching Grant for agri-business related climate change adaptation investments: The Project will support small and medium scale investments in activities that are deemed to add value (marketing and value adding activities in agri-business) and increase climate change resilience.Entrepreneurs who secure loans or grants from government or financing institutions for climate change related adaptation investments will be eligible for a matching grant up to 25 percent of the investment or a ceiling value of US$15,000 per investment. Such investments will target communities that would benefit from value addition activities focusing on agro-processing. The matching grant facility was included in the Project based on indications that market failures limit credit access to farmers. Sub-component 1.2: Support to Participatory Adaptation (US$ 3 million grant). 1.3 This sub-component will support the local government and community groups in each district to incorporate climate risk management principals into local are development planning (sub-component 1.1) and in selecting adaptation initiatives that will building climate resilience at the community level. Support will be provided to local non-governmental organizations to mobilize, train and facilitate communities in risk and vulnerability assessment and in integrating climate risk management principals in local area planning. Component 2: Climate proofing rural roads (US$ 19 million loan) 1.4 This component will seek to support activities focusing on climate proofing farm-to-market access roads in an effort to strengthen the climate resilience of vulnerable roads and minimize the exposure of the road investments to climate risks particularly floods. The component will support strategic access rural roads in the Kafue basin which will include: (i) Kalomo to Dundumwezi (75.25km), (ii) Itezhi-Tezhi to Dundumwezi through Ngoma and Nanzhila (124km), and (iii) Namwala to Itezhi-Tezhi D180 (52km) for a total of 251.25km. Road rehabilitation and/or maintenance works are expected to include (i) embankment stabilization (with earthworks and vegetative approaches), (ii) selected dredging and erosion-control measures, (iii) shoulders' rehabilitation and/or surfacing, (iv) repairing and/or upgrading drainage systems including culverts. Component 3: Project Management and Coordination (US$ 2 million grant) 1.5 This component will support Project coordination functions of the Secretariat to oversee Project implementation as well as implementation structures at the district level and will include project management, financial audit and environmental and social management activities.
Expected Returns, Socio-Economic and cross cutting benefits. 1.The Project is expected to generate both positive social-economic and environmental impacts by supporting poor rural farming communities to better adapt to the impacts of climate change, and also safeguard their production systems against the risks of climate change and variability. Positive impacts on the environment are likely to result from the use of sustainable land and water management practices incorporated into the main production systems such as protection against soil and water erosion, increase in soil fertility through moisture retention, provision of safeguards against floods and reduction of greenhouse gas emissions. This will likely improve productivity levels and in turn generate multiplier effects on the targeted communities through increased income and employment opportunities, including enhanced food security. Rehabilitation works on the rural roads will be limited to existing road alignment and right of way. The likely negative impacts are mostly construction related, such as increased dust, noise and minor soil erosion which will be addressed through the mitigation measure recommended in the ESMP. 2.The Government is currently preparing Environmental and Social management tools to address the impacts and risks associated with the implementation and operation of the Project. The sub-Projects funded under the Participatory Adaptation Component will be identified and approved during the Project implementation phase. Consequently, specific information on types of sub-Projects, site/location and specific bio-physical characteristics are not yet known before appraisal. A Strategic Environmental and Social Assessment describing in details the procedures for screening, measures to address the impacts, implementation and monitoring arrangements of the sub-Projects is currently being prepared by the Government, and will be disclosed before appraisal. Site-specific Environment and Social Impact Assessments for the road works are currently being carried out by the Government as part of the feasibility studies.
Project Rationale 1.PRSP and CSPs priorities, key development issue(s) the Project is aiming to address 1.1Country's strategic priorities: The Government of the Republic of Zambia (GRZ) recognizes the need to mainstream climate change into the key economic sectors as a means toward achieving a low carbon and climate resilient development. It is on this basis that climate change adaptation, mitigation and disaster risk management principles were integrated into the key economic sectors identified in the Sixth National Development Plan being implemented from 2011 to 2015. The development plan calls for acceleration of infrastructure development, economic diversification, and rural investments in order to stimulate economic growth and reduce rural poverty so as to spearhead the country's vision of becoming a middle income country by 2030. The Project will seek to contribute toward these strategic goals. The Project design was also guided and informed by the National Climate Change Response Strategy (NCCRS) and the National Adaptation Programme of Action on Climate Change (NAPA), two key policy instruments that identifies the risks associated with climate change and variability as well as adaptation and mitigation measures integral to fostering a sustainable and inclusive economic development for the country. 1.2Congruence with Bank's policies and country assistance strategy: The Project is in support of the Bank's Pillar 1 of the Country Strategy Paper for Zambia (2011-2015), which focuses on supporting economic diversification through infrastructure development and productive sectors. The Project is in line with the Bank's Long-Term strategy (2013 - 2022) by supporting the twin objectives which promote inclusive growth and transition to green growth. In addition, the Project is aligned with the Bank's Agriculture Sector Strategy (2010-2014) which was approved in 2010 and the Climate Change Action Plan approved in 2012 both of which recognize the important role that climate change adaptation and mitigation play in promoting climate resilient investments in the agriculture and natural resources sectors including rural infrastructure. 1.3Key development issues the Project is aiming to address: Zambia's macroeconomic performance was relatively strong between 2011 and 2012.The Gross Domestic Product (GDP) grew on average by 7.3 per cent in 2012, up from 6.8 per cent in 2011 in real terms. Among the key drivers of the economic growth are increase in agricultural production, and strong construction activities stemming from increased public spending on infrastructure, both urban and rural. This expansion has relied heavily on the use of natural resources for agricultural production such as water, energy generation and transportation of goods. The economic re liance on a narrow resources base makes Zambia particularly vulnerable to climate and economic shocks which are likely to undermine its development gains. Zambia's climate is highly variable, with frequent droughts, seasonal and flash floods, extreme temperatures and dry spells. Floods and droughts have increased in frequency over the past three decades, costing the nation an estimated 0.4 percent in annual economic growth. These trends are expected to intensify in the future: Projected temperatures are expected to increase by 3-50 C by 2100, with average precipitation declining during the early rainy season (October to December) and intensifying thereafter. In the absence of adaptation, rainfall variability alone could keep an additional 300,000 people below the poverty line over the next decade, and reduce annual GDP growth by 0.9 per cent. Climate change and variability is in turn affecting agriculture and natural resource productivity and exacerbates poverty. 2.Rationale for Bank's Intervention 2.1The Bank has an extensive experience in supporting Zambia with demand-driven community based development models in planning, selecting and designing climate change adaptation initiatives in the agriculture and natural resources sectors. Within Zambia, the Small Scale Irrigation Project, the Community Water Management Improvement Project, and the Agriculture Marketing Promotion and Regional Integration have provided lessons that have informed the design of the proposed Project, so have the PPCR pilot Projects in Mozambique and Niger. Therefore, as the government of Zambia moves toward deepening its interventions in climate change adaptation and mitigation in line with the National Climate Change Response strategy, the Bank will be playing a lead role through this Project in supporting the government in its endeavor and in demonstrating approaches to climate change adaptation. 2.2The proposed Project is crucial to the Government of the Republic of Zambia, as it seeks to emphasize climate change adaptation measures that are community based, locally owned and managed, primarily aimed at enhancing climate resilience of poor rural communities whose livelihood is dependent on natural ecosystems. Key problems faced in the target areas include extreme climate with pronounced drought and flood events, loss of productivity of agricultural arable land, land degradation, loss of livestock and over utilization of natural resources exacerbated by unpredictable climate change. Climate change poses risks and vulnerability to the poor and marginalized communities in the target regions as it negatively affects food and water security and livelihoods in the target area. Climate change risks to be addressed are frequent and more severe floods, droughts and change in rainfall patterns and the changes in growing seasons.