d e z ri o h ut A e Document of r u s The World Bank o cl s Di c FOR OFFICIAL USE ONLY bli u P Report No: PAD1146 d e z INTERNATIONAL DEVELOPMENT ASSOCIATION ri o h ut PROJECT APPRAISAL DOCUMENT A e r u s ON A o cl s Di PROPOSED CREDIT c bli u P IN THE AMOUNT OF SDR125.2 MILLION (US$ 176.06 MILLION EQUIVALENT) d e z ri TO THE o h ut A PEOPLE’S REPUBLIC OF BANGLADESH e r u s o FOR A cl s Di c NATIONAL AGRICULTURAL TECHNOLOGY PROGRAM - PHASE II PROJECT bli (NATP-II) u P May 14, 2015 d e z ri o h Agriculture Global Practice ut A SOUTH ASIA e r u s o cl s Di c This document is being made publicly available prior to Board consideration. This does not bli imply a presumed outcome. This document may be updated following Board consideration u P and the updated document will be made publicly available in accordance with the Bank’s policy on Access to Information. CURRENCY EQUIVALENTS (Exchange Rate Effective April 30, 2015) Currency Unit = SDR SDR 0.71103 = US$1 US$ 1.40642 = SDR 1 FISCAL YEAR July 1 – June 30 ABBREVIATIONS AND ACRONYMS AIF Agricultural Innovation Fund DPD Deputy Project Director APL Adaptable Program Loan DPP Development Project Proposal BARC Bangladesh Agricultural Research DP Direct Procurement Council EMF Environmental Management BARI Bangladesh Agricultural Research Framework Institute EOP End of Project BBS Bangladesh Bureau of Statistics ERR Economic Rate of Return BFRI Bangladesh Fisheries Research FAO Food and Agriculture Organization Institute FAPAD Foreign Aided Project Audit BINA Bangladesh Institute for Nuclear Directorate Agriculture FEDEC Finance for Enterprise Development BLRI Bangladesh Livestock Research and Employment Creation Project Institute FG Farmer Group BMD Bangladesh Meteorological FIAC Farmers’ Information and Advice Department Center BRRI Bangladesh Rice Research Institute FM Financial Management CAS Country Assistance Strategy GAP Good Agricultural Practices CCMC Commodity Collection and Marketing GDP Gross Domestic Product Center GMO Genetically Modified Organism CEAL Community Extension Agents for GOB Government Of Bangladesh Livestock HEQEP Higher Education Quality Enhancement CIG Common Interest Group Project CIP Country Investment Plan HOPE Head of Procurement Entity CONTASA Convertible Taka Special Account Hortex Horticulture Export Development CRGP Competitive Research Grant Program Foundation DA Designated Account ICB International Competitive Bidding DAE Department of Agricultural Extension ICT Information and Communication (MOA) Technology DLS Department of Livestock Services IDA International Development Association (MOFL) (WB Group) DOF Department of Fisheries (MOFL) IFAD International Fund for Agricultural Development IFC International Finance Corporation PCU Project Coordination Unit IRR Internal Rate of Return PCMU Project Coordination and Management IUFR Interim Unaudited Financial Reports Unit JPSC Joint Project Steering Committee PDO Project Development Objective LEAF Local Extension Agent for Fisheries PIU Project Implementation Unit MOA Ministry of Agriculture PMP Pest Management Plan MOFL Ministry of Fisheries & Livestock PMU Project Management Unit MIDPCR Market and Infrastructure PO Producer Organization Development Project in Chaorland SCA Seed Certification Agency Regions SEPA Procurement Plan Execution System NAEP National Agricultural Extension Policy SMF Social Management Framework NARI National Agricultural Research SORT Systematic Operations Risk-Rating Institute Tool NARS National Agricultural Research System UNDB United Nations Development NCB National Competitive Bidding Business OA Operating Account USAID US Agency for International OTM Open Tendering Method Development PACE Promoting Agricultural Commercialization and Enterprises PACT Project for Agricultural Commercialization and Trade Regional Vice President: Annette Dixon Country Director: Johannes Zutt Senior Global Practice Director: Juergen Voegele Practice Manager: Martien van Nieuwkoop Task Team Leader: Patrick Verissimo BANGLADESH National Agricultural Technology Program – Phase II Project (NATP-II) TABLE OF CONTENTS Page I. STRATEGIC CONTEXT ..........................................................................................13 A. Country Context .......................................................................................................... 13 B. Sectoral and Institutional Context ............................................................................... 13 C. Higher Level Objectives to which the Project Contributes ........................................ 15 II. PROJECT DEVELOPMENT OBJECTIVES ............................................................16 A. PDO............................................................................................................................. 16 B. Project Beneficiaries ................................................................................................... 17 C. PDO-level Results Indicators ...................................................................................... 18 III. PROJECT DESCRIPTION ........................................................................................18 A. Project Components .................................................................................................... 20 B. Project Financing ........................................................................................................ 24 C. Lessons Learned and Reflected in the Project Design ................................................ 28 IV. IMPLEMENTATION ................................................................................................30 A. Institutional and Implementation Arrangements ........................................................ 30 B. Results Monitoring and Evaluation ............................................................................ 31 C. Sustainability............................................................................................................... 32 V. KEY RISKS AND MITIGATION MEASURES ......................................................34 A. Risk Ratings Summary Table ..................................................................................... 34 B. Overall Risk Rating Explanation ................................................................................ 34 C. Governance and Accountability .................................................................................. 35 VI. APPRAISAL SUMMARY .........................................................................................36 A. Economic and Financial Analysis ............................................................................... 36 B. Technical ..................................................................................................................... 36 C. Financial Management ................................................................................................ 37 D. Procurement ................................................................................................................ 38 E. Social (including Safeguards) ..................................................................................... 39 F. Environment (including Safeguards) .......................................................................... 40 G. World Bank Grievance Redress .................................................................................. 40 Annex 1: Results Framework and Monitoring...............................................................................41 Annex 2: Detailed Project Description ..........................................................................................46 Annex 3: Implementation Arrangements .......................................................................................62 Annex 4: Systematic Operations Risk-Rating Tool (SORT) .........................................................80 Annex 5: Implementation Support Plan .........................................................................................82 Annex 6: Economic and Financial Analysis ..................................................................................85 Annex 7: Governance and Accountability Action Plan (GAAP) ..................................................90 Annex 8: Guiding principles for the Agricultural Innovation Fund (AIF) ....................................95 Annex 9: Leveraging ICT to improve NATP-II performance .......................................................98 Annex 10: Poverty, Targeting and Gender ..................................................................................101 Annex 11: Complementarity with IFAD strategy, current loan portfolio and lessons learnt ......107 Annex 12: Geographic Coverage of NATP-II by districts and Upazilas ....................................108 Annex 13: Lessons Learned from NATP: Synthesis of the Impact Assessment .........................115 TABLES AND FIGURES Table 1: Overview of total project costs (top) and IDA withdrawal schedule (bottom) 27 Table 2: Economic and financial analysis and sensitivity analysis: key outcomes 36 Table 3: Selected agricultural technologies readily available under NATP-II 59 Table 4: Procurement process for pooled procurement for selected goods and services 76 Table 5: Overview of skills needed by PMU in early stages of project implementation 83 Table 6: Overview of early implementation support provided (first 24 months) 84 Table 7: NATP-II Governance and Accountability Action Plan 92 Figure 1: Project overview, objective and overall context 16 Figure 2: NATP-II strategic approach for support to farmers 19 . PAD DATA SHEET Bangladesh Bangladesh: National Agricultural Technology Program - Phase II project NATP-II (P149553) PROJECT APPRAISAL DOCUMENT . SOUTH ASIA 0000009056 Report No.: PAD1146 . Basic Information Project ID EA Category Team Leader P149553 B - Partial Assessment Patrick Verissimo Lending Instrument Fragile and/or Capacity Constraints [ ] Investment Project Financing Financial Intermediaries [ ] Series of Projects [ ] Project Implementation Start Date Project Implementation End Date 01-Sep-2015 31-Mar-2021 Expected Effectiveness Date Expected Closing Date 01-Jul-2015 30-Sep-2021 Joint IFC Joint Level Complementary or Interdependent project requiring Yes active coordination Practice Senior Global Practice Country Director Regional Vice President Manager/Manager Director Martien van Nieuwkoop Juergen Voegele Johannes Zutt Annette Dixon . Borrower: Government of Bangladesh (MoFin/ERD) Responsible Agency: Ministry of Agriculture (MOA) Contact: Mr. Shyamal Kanti Ghosh Title: Secretary Telephone No.: 880-2-9540100 Email: [email protected] . Project Financing Data(in USD Million) [ ] Loan [ ] IDA Grant [ ] Guarantee [ X ] Credit [ ] Grant [ ] Other Total Project Cost: 214.00 Total Bank Financing: 176.06 Financing Gap: 0.00 . Financing Source Amount BORROWER/RECIPIENT 6.65 International Development Association (IDA) 176.06 US Agency for International Development 7.43 (USAID) International Fund for Agriculture 23.86 Development (IFAD) Total 214.00 . Expected Disbursements (in USD Million) FY 2016 2017 2018 2019 2020 2021 0000 0000 0000 0000 Annual 10.00 20.00 40.00 52.00 52.00 40.00 0.00 0.00 0.00 0.00 Cumul. 10.00 30.00 70.00 122.00 174.00 214.00 0.00 0.00 0.00 0.00 . Institutional Data Practice Area / Cross Cutting Solution Area Agriculture Cross Cutting Areas [ X ] Climate Change [ ] Fragile, Conflict & Violence [ X ] Gender [ ] Jobs [ ] Public Private Partnership Sectors / Climate Change Sector (Maximum 5 and total % must equal 100) Major Sector Sector % Adaptation Mitigation Co-benefits % Co-benefits % Agriculture, fisheries, and forestry Ag. extension & research 50 Agriculture, fisheries, and forestry Animal production 20 Agriculture, fisheries, and forestry Crops 20 Information and communications Information technology 10 Total 100 x I certify that there is no Adaptation and Mitigation Climate Change Co-benefits information applxicable to this project. . x Themes Theme (Maximum 5 and total % must equal 100) Major theme Theme % Rural development Rural services and infrastructure 50 Trade and integration Technology diffusion 25 Rural development Rural markets 25 Total 100 . Proposed Development Objective(s) To increase the agricultural productivity of smallholder farms and improve smallholder farmers’ access to markets in selected districts. . Components Component Name Cost (USD Millions) Enhancing Agricultural Technology Generation 52.00 Supporting Crops Development 66.00 Supporting Fisheries Development 37.00 Supporting Livestock Development 47.00 Project Management 12.00 . Compliance Policy Does the project depart from the CAS in content or in other significant Yes [ ] No [ X ] respects? . Does the project require any waivers of Bank policies? Yes [ ] No [ X ] Have these been approved by Bank management? Yes [ ] No [ ] Is approval for any policy waiver sought from the Board? Yes [ ] No [ X ] Does the project meet the Regional criteria for readiness for implementation? Yes [ X ] No [ ] . Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 X Natural Habitats OP/BP 4.04 X Forests OP/BP 4.36 X Pest Management OP 4.09 X Physical Cultural Resources OP/BP 4.11 X Indigenous Peoples OP/BP 4.10 X Involuntary Resettlement OP/BP 4.12 X Safety of Dams OP/BP 4.37 X Projects on International Waterways OP/BP 7.50 X Projects in Disputed Areas OP/BP 7.60 X . Legal Covenants Name Recurrent Due Date Frequency 1. Governance Accountability Yes various n.a. Action Plan (GAAP) Description of Covenant Carry out, in a manner satisfactory to IDA, all activities listed in the GAAP, as per the respective deadlines (see PAD, Annex 7) 2. Joint Project Steering Yes Not later than one n.a. Committee (JPSC) and month after Project Management Unit Effective Date (PMU) Description of Covenant Establish and thereafter maintain, JPSC and PMU with mandate, terms of reference and resources satisfactory to IDA 3. Project Implementation Units Yes Not later than two n.a. (PIUs) months after Effective Date Description of Covenant Establish and thereafter maintain, PIUs in each of the Implementing Agencies with mandate, terms of reference and resources satisfactory to IDA 4. Project Implementation Yes Throughout n.a. Manual (PIM) implementation Description of Covenant Carry out the Project in accordance with the PIM 5. Grants under Agricultural Yes Throughout n.a. Innovation Fund (AIF) implementation Description of Covenant Provide grants following the requirements of the AIF Operational Guidelines and Procedures applicable for each AIF window and enter into agreements with Eligible Beneficiaries under terms and conditions acceptable to IDA 6. Independent AIF performance No Sept. 30, 2017 Once assessment Description of Covenant Employ an third party entity to carry out an independent performance assessment of the AIF for consideration in the Mid-term Review