4 TH QUARTER PROGRESSREPORT

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1 THIRD NATIONAL FADAMA DEVELOPMENT PROJECT- ADDITIONAL FINANCING (FADAMA III AF) 4 TH QUARTER PROGRESSREPORT 2014 FADAMA III AF 4 TH QUARTER PROGRESS REPORT Page 1

2 TABLE OF CONTENTS Page 1.0 Background of AF Project Components and Component Achievements Component 1 and Achievements Component 2 and Achievements Components 3 and Achievements Components 4 and Achievements Component 5 and Achievements Component 6 and Achievements Identified Challenges Recommendation Action Plan for 2015 First Quarter 18 FADAMA III AF 4 TH QUARTER PROGRESS REPORT Page 2

3 THIRD NATIONAL FADAMA DEVELOPMENT PROJECT- ADDITIONAL FINANCING (FADAMA III AF) 4TH QUARTER PROGRESS REPORT 1.0 BACKGROUND The Federal Government of Nigeria (FGN) had received additional IDA credit of USD200 million on June 28, 2013, to scale up impacts on the ground and strengthen the development effectiveness of the well performing Third National Fadama Development Project (Fadama III P Credit NG) by aligning it more closely with the new Agricultural Transformation Agenda (ATA). The Additional Financing (AF) is supporting clusters of farmers in six selected states with comparative advantage and high potential to increase production and productivity of cassava, rice, sorghum and horticulture value chains and link them to better organized markets, including Staple Crop Processing Zones (SCPZs). Essentially it is to facilitate linkages between federation of producers and existing processors. The Project Development Objective (PDO) of Additional Financing does not change from the parent project (Fadama III) and the six components are retained with little adjustments to enhance effective delivery of the project. The objective of the additional financing is to increase the incomes for users of rural lands and water resources within the Fadama Areas in sustainable manner throughout the recipient s territory. Additional Financing became Disbursement Effectiveness (February 11, 2014) and has commenced operations upon the approval of the eighteen month procurement plan by the World Bank and the annual work plan and budget in April National Fadama Development Additional Financing Project in Close Collaboration with ATA Value Chain (a) As part of outcomes of the training conducted for Facilitators on Business Plan in September, 2014, in which all the ATA four value chain of Cassava, Rice, Sorghum and Tomato were adequately represented, Fadama III AF has commenced a close partnership with Commodity Value Chain of ATA and the readiness to complement the activities of Growth Enhancement Scheme (GES) by supporting farmers with practical and technical knowledge on how to address low productivity in order to improve the efficiency and productivity of the sector has commenced in earnest. Within the quarter, on November 24 th, as part of effort to establish organized markets for Sorghum Farmers, the National Fadama Development Additional Financing Project (Fadama III AF), in collaboration with the Federal Ministry of Agriculture and Rural Development s Sorghum Transformation Value Chain organized a forum for Sorghum Farmers and other investors in Kano. (b) Besides, National Fadama Development Additional Financing Project is in collaboration with other agencies that recently held a 2-day Stakeholders Investment Forum on Tomato Value Chain in Kano, during November 19-20, 2014 at Prince Hotel Kano, Kano State. The Agencies include: World Bank Group, DFID and Dansa Holdings, other stakeholders in attendance were: Syngenta, GEMS4, Transforming Irrigation Management In Nigeria (TRIMING) Project, recently restructured Commercial Agricultural Development Project (CADP), International Finance Corporation (IFC), Propcorn MARKET, IFAD CBRDB, Long Cottage and Tomato Growers Association members. FADAMA III AF 4 TH QUARTER PROGRESS REPORT Page 3

4 NFCO/WB TTL Meeting with ATA Value Chain NFCO/FMARD Sorghum Value Chain Investment Forum in Kano Sorghum Farmers in Kano State 2. Business Plan Development In addition, as part of outcome of the training conducted, the trained Facilitators have demonstrated a high level of understanding and the impact of the training emerged as NFCO had received Sixty Six (66) business plans developed for Cassava value chain, One hundred and ninety nine (109) business plans for Rice Value Chain, Ten (10) business Plans for Horticulture value chain while Sorghum value chain business plan is being expected. 3. Input Distribution in Kogi State 100 ha Cassava Value Chain Within the reporting period, National Fadama Development Additional Financing Project distributed required inputs to the 100 ha of Cassava Farmers in Kogi State. Six thousand (6000) cassava bundles, six hundred (600) bags of NPK fertilizer, two hundred (200) bags of Urea, Five hundred (500) Litres Preemergency herbicide, four (4 No) Inoculums, and Eight (8No) Foliar micro-nutrient bottles for spraying. Cassava Bundles Delivered to Farm Site at Ogale Bags of fertilizer Delivered to Farm Site at Ogale 2.0 COMPONENTS BASED ACHIEVEMENTS 3.1 Component 1: Capacity Building, Communications and Information Support. This component was designed to provide additional capacity building support to farmers, with emphasis on strengthening linkages between farmers, agro-dealers, processing firms and other private sector participants to develop contracts for agreed quantity and quality of outputs. Activities under this component include group mobilization and sensitization; community relations, training of farmer groups and other stakeholders on business plan development; and linkage with financial institutions, support for implementation of activities covered by the farmer groups' business plans, and training of market-oriented facilitators. The project also finances (i) information dissemination about the project and its guidelines to potential beneficiaries; and implementation of communications program. It also has provision for media vans, farm broadcasts, communication production programs and partnership with ministry of information/existing communication agencies Component 1 Achievements: Under this Component, there are three departments and are listed as follows: 1. Rural Institutions Development FADAMA III AF 4 TH QUARTER PROGRESS REPORT Page 4

5 2. Communication and Information Support 3. Agric Business and Investment Department Within the reporting period, the following achievements were recorded on departmental basis: A. Rural Institutions Development: A sensitization workshop was organized for the selected FFCAs, their executives, state project Engineers and State SPCs along their value chain commodity in the six core State on 8/10/14 at NFCO to identify the urgency and give a more detailed and practical sensitization to FFCAs on their roles in implementing AEHE under Fadama III + AF project and to spur them to commence activities precedent to take- off. The workshop provided an opportunity to give a more detailed and practical sensitization to the FFCAs on their roles in implementing AEHE under Fadama III + AF project and to spur them to commence activities precedent to take- off. Specifically, the training was able to address the following: 1. Assessed the condition of the FFCAs and their level of understanding and preparedness to implement the AEHE. 2. Used to identify the training needs of the FFCAs and how to manage the AEHE and financial requirement for the enterprise. 3. Used to familiarize the States to on various equipment contained in the program and the choice of modifications they can make. 4. Used to help the States make funding decisions and possibly arrange to draw MOU with the team for commencement of activities. TABLE ON CLUSTER AND GROUP FORMATION S/N STATE NO OF L.G.A NO OF CLUSTER NO OF GROUP MEMBERSHIP TOTAL TOTAL HECTARES M F 1 Anambra Rice 2 Enugu , Rice 3 Kano Rice 4 Lagos Rice 5 Niger Rice VALUE CHAIN CROP 6a Kogi Cassava 6b Kogi Cassava 7 Kano Sorghum FADAMA III AF 4 TH QUARTER PROGRESS REPORT Page 5

6 8 Kano Tomato Source: NFCO, Dec 2014 B. Communication and Information Support: The objective of the Communication and Information Sub-Component is to effectively carry out information dissemination about the project and its guidelines to potential beneficiaries; and implementation of communications program. Based on its set objective, has recorded the following achievements: 1. Sensitization/Mobilization/Publicity i. Conducted 14 Nos Sensitization visits to rice, cassava, and sorghum farmers and community leaders were conducted in Niger, Kogi, Enugu, Kano, Lagos, Taraba, Osun, Plateau, Bauchi, FCT and over 12,600 people were mobilized and sensitized on Business Plan preparation, awareness creation and participation in the AF. ii. Awareness creation campaigns were carried out through NFCO website and social media platforms to targets Stakeholders ad general public. iii. Facilitated Advertisements for EOI on Procurement of Goods and Consultancy and EOI for the Engagement of a Recruitment Agency to set up Alape SCPZ Project Implementation Unit, published in four newspapers. 2. Technical Assistance Mission i. National Communication Officer (NCO) visited Cross River, Lagos, Sokoto and Yobe States for technical support and performance assessment of the FIKS Field Officers and operations of the centres. Technical advice was provided on access and utilization of uploaded data. ii. Provided technical support to core States on weekly programmes content development and schedules. 3. Production of Flyers/Newsletter. i. Designed, created and produced 7 Nos project flyers to raise awareness and educate target beneficiaries on key activities of the project with some basic required agronomic practices to increase production and productivity of Cassava, Rice, Sorghum and Tomatoes farming. ii Copies of NFCO AF Newsletters (First edition) were distributed to key stakeholders to increase awareness of and disseminate information on the project s activities and implementation. iii. Concluded all news production, creative art designs, labelling, layouts and colour processing of the Fadama III Newsletter (Second edition) at the end of the reporting period and finally produced 2000 copies of the publication in December, Information Update on NFCO Website 21 stories were written and produced by the unit on different activities of the project and uploaded on the NFCO website by the ICT Unit, including project pictures (field activities), 6 number video documentaries and 3 video clips also uploaded on the website. C. Agric Business and Investment Department: FADAMA III AF 4 TH QUARTER PROGRESS REPORT Page 6

7 The Agribusiness and Investment Unit is responsible for the overall coordination of activities related to Value Addition and Commercialization of the Selected Value Chain Commodities. Based on the set objective to ensure: i. 75% of participating Beneficiaries have developed farmer group business plans through a participatory ii. iii. iv. process: The business plan template has been finalized and approved. Two Hundred and Ninety One (291) Business Plans were developed by farmer groups and forwarded for review. 20% increase in income from sales of value-added agricultural products: Beneficiaries are yet to commence production; however the Project is targeting dry season farming. 30% of FCA has access to Market Information: Major off-takers have been indentified across value chain crops; the processes of signing MoUs have been initiated. Number of Business Plan Developed by Value chain: v. Sixty Six (66) business plans were developed by Cassava value chain, One hundred and ninety nine vi. vii. viii. ix. (109) business plans for Rice Value Chain, Ten (10) business Plans for Horticulture value chain and none (0) for Sorghum value chain. Number of Production Cluster with Business plan developed by participatory process: Fifty One production clusters have developed business plan through participatory process. Number of production groups with Business plan developed by participatory process: Two hundred and ninety one production groups have developed Business Plans through participatory process. Number of processors/off-takers already linked with Production clusters: None yet, the process for linkage is ongoing. Number of MoU prepared with off-takers: The process and meetings for MoU are ongoing with two (2) major off-takers Dangote and Cargil 3.2. Component 2: Small-Scale Community-owned Infrastructure. This component would be scaled-up to finance the interventions in the following subcomponents: (a) Rehabilitation of surface water and limited construction of new small-scale irrigation schemes and borehole schemes: The surface water scheme activities include: land surveying, contour maps, land leveling and grading, design works, repairs of generator houses and generators, clearing of water courses, such as desiltation, and provision of equipment, such as sprinkler component. The activities under consideration for finance include the borehole schemes and it includes: yield tests of the existing schemes, sinking of new boreholes, construction of pump houses, and installation of new power generating sets, and infrastructure to ensure the integrity of the schemes. The project will finance works and goods to install limited new and rehabilitate existing irrigation infrastructure, including main and secondary canals, FADAMA III AF 4 TH QUARTER PROGRESS REPORT Page 7

8 drainage structures and pumping stations; provision of access roads; and technical assistance and training to develop institutional capacity in land and water resources management, including capability for more efficient and sustainable operation and maintenance of the installed irrigation infrastructure by FUGs, FCAs, and Water User Associations (WUAs). Detailed design for irrigation and drainage schemes will be developed and will include improvements in primary, secondary and tertiary (household level) systems. In addition, access roads and on-farm storage facilities will be provided as a rural infrastructure sub-project. Acceptable appraisal of these schemes includes the willingness of households to participate through the formation of production/fug clusters and/or FCA federation; and compliance with the technical, economic, and environmental and social safeguards criteria. All the applicable criteria will be outlined in the revised Project Implementation Manual (PIM). (b).ground Water Irrigation Schemes: This sub-component will assist to demonstrate low-cost technologies for shallow groundwater irrigation. Additional Financing funds will be used to finance infrastructure and equipment for demand-driven small scale irrigated rice and horticultural subprojects emanating from the beneficiary groups, organized as Out growers' Associations (OAs)/FCAs or rice/horticultural production clusters (PCs). The main expenditure items will include water extraction infrastructure, such as wash bore/shallow tube wells, and water-lifting devices, such as 2-3 inches 5.5 HP motorized irrigation pumps. The technologies and the associated water resources management practices of this level of irrigation are fairly well known since some of the selected states benefited from the Fadama projects which promoted the widespread adoption of simple, low-cost techniques for Fadama-based irrigation. The schemes will be in areas in close proximity to urban markets, use groundwater no deeper than 60 meters, and involve farmers with experience in growing higher-value crops such as horticultural crops and rice. Other access criteria used in the original project remain valid, particularly the criteria for economic and financial viability, as well as the approval process used. Additional support will be provided to the cluster of farmers to ensure adequate capacities to operate, maintain, and replace the installed infrastructure and pumps. (c).other infrastructure support: This sub-component was designed provide market infrastructures to clusters of farmers in order to reduce post-harvest losses and facilitate access to markets. Such infrastructure would include rehabilitation of access roads and culverts linking production sites to the processing/marketing zones, storage facilities and preservative technologies which are all related to the priority value chains. It should be noted that, in order to maximize the overall impact of the Bank's agricultural portfolio in Nigeria, the project seeks to build synergy with the Nigeria Irrigation and Water Resources Management Project (NIWRMP) under preparation for the North-East States. This was scheduled through close collaboration between the two project teams and joint supervision missions Component 2 Achievements: Within the reporting period, the following achievements were recorded: i. Prepared an engineering design with drawing for the housing of Agricultural Equipment Hiring Enterprise ii. (AEHE) under the project. Prepared bill of quantities for the construction of the center comprising of the Agricultural Equipment Hiring Enterprise and the input center. FADAMA III AF 4 TH QUARTER PROGRESS REPORT Page 8

9 iii. Along with the Rural Institution Development component held a one day sensitization workshop on AEHE with the SPCs and FFCA executives of the six core states at NFCO conference hall on 8th, October, iv. Reviewed and harmonized infrastructure need submissions from States on dry season farming. So far, all five states of Niger, Anambra Enugu Lagos and Kano have submitted. However, Kogi was exempted being cassava value chain State which is drought resistant and may not require irrigation. v. Actively participated in the ongoing SCPZ establishment in Kogi State. To this end, a pre appraisal World Bank mission was held between 13th to 18 th of October, The aim of the mission was to meet with Cargill team, Kogi State Government, farmers and other stakeholders on the proposed cassava starch processing facility in Kogi State. The component on behalf of the project made a presentation on the position of Fadama in the infrastructural support to the SCPZ. The outcome of the mission was the successful development of a timetable for Cargill Agricultural Production and Processing Project (CAPPP). vi. Participated in the evaluation of consultant to undertaking the feasibility study and the design, construction and rehabilitation of irrigation facilities in the core States of Anambra, Enugu, Niger, Lagos and Kano. The evaluation is currently being finalized. vii. Participated in the World Bank irrigation project mission to Kano State. The mission was aimed at inspecting irrigation intervention site under Fadama AF so as to avoid duplication of intervention. viii. Received No Objection on the TOR for the feasibility study and design of irrigation construction and rehabilitation in the five core States of Anambra, Enugu, Kano, Niger and Lagos. ix. Prepared draft TOR for the construction and rehabilitation of access road in the six core zones. This draft document is still been reviewed. x. Followed up with the action plan drawn at the sensitization meeting with FFCA on AEHE program. So far, Niger and Lagos States has submitted their approved site location for the centre. Anambra, Enugu, Kano and Kogi submissions are being awaited. xi. The component organized a capacity building class for its support staff to acquit them with the basic knowledge required in preparing Bill of Quantities in engineering. xii. The component facilitated the drilling of industrial borehole for the SCZP in Alape, Kogi State. xiii. Computation to determine the required irrigation pump and water requirement for the four (4) value chain crop of Rice, Cassava, Sorghum and Tomatoes. xiv. Made inputs into the AWPB for the year This has been submitted to the M&E unit for harmonization Component 3: Advisory Services and Input Support The project finances the procurement of advisory services to transfer know-how on proper utilization of factors of production (fertilizers, improved seeds and agricultural machinery), including advice on the associated downstream activities. The bulk of the funds under this component would be for the provision of critical inputs needed to ramp up production. The project was designed to collaborate with WAAPP to ensure synergy and complementarily. In addition, the project supports productivity improvement of the selected rice, cassava, sorghum and horticulture value chains by upgrading the parent project's current paper input voucher program to the use of e-wallet platform to deliver improved seeds and fertilizers to beneficiaries. This way, the Fadama III AF is taking advantage of the ongoing reforms (liberalization) in the input sector where private seed and fertilizer companies including agro-dealer deliver input directly to farmers. The objective of this support is to ensure timely and equitable access (especially for women farmers) to these critical inputs in good quantity and quality to the production clusters in the project intervention areas where low yields are the binding constraint. FADAMA III AF 4 TH QUARTER PROGRESS REPORT Page 9

10 This component is made up of two subcomponents: (a) Advisory services: The Project was designed to provide support to empower farmer groups to purchase advisory services from registered advisory service providers, as implemented by Fadama III. The advisory needs of farmers would be addressed either by ADP extension staff or by farmer selected service providers on a matching grant basis (10 percent co-finance requirement). For the latter, farmers would select the service providers among the registered and certified providers, sign a contract, implement and monitor the activities. The project will also create awareness among the Nigeria Agro dealer Network in order for them to set up services in the production clusters. (b) Input Supply: Additional financing will be provided to enable farmers to access inputs, using the matching grant arrangement successfully tested under Fadama II/III Projects. This facility shares the risks involved in the adoption of a new technology by the farmers to enhance their financial capacity to purchase farm inputs which the beneficiaries will choose (including seeds, fertilizers, and agricultural machinery) and to build savings from incremental earnings to finance future purchases. Farmers will receive a grant equivalent to 50 percent of the purchase price of the input per FUG/PG, with the remaining 50 percent due as FUG beneficiary counterpart contribution. Confirmation by the Project of the deposit of the counterpart contribution into the Project Account is required before actual purchase of the input. Access to this facility will be for a maximum of two years, during which time the FUGs/PGs are expected to become familiar with the selected new technology. The criteria to access this input support facility are outlined in the PIM. In order to ensure sustainability of the production process after the second season, the beneficiaries will be assisted to link with financial institutions through capacity building support (Component 1) to open savings accounts and to access credit for future purchase of inputs Component 3 Achievements: Within the reporting period, the following achievements were recorded: a) Advisory Services: i. A 4-Day training of farmers on best agronomic practices in cassava root production at 4NOS Cassava intervention sites; (Magongo, Ponyan, Ogale and Iresuare) in Kogi State was conducted between 6th and 9 th, November, Theoretical Session on Best Agronomy Practice at the 4 sites of Cassava Value Chain in Kogi 100ha Development Farm Demonstration and Practice on Best Agronomy of Cassava Value Chain in Kogi 100ha Development ii. Compiled the list of Agro dealers from the 6 cores States and input requirement for four identified ATA commodities; Cassava Rice, Sorghum, and Tomato. ( Comprehensive list domicile with Component 3) FADAMA III AF 4 TH QUARTER PROGRESS REPORT Page 10

11 iii. Collated developed Enterprise Modules from the 6 Core States on the identified value chain commodities. iv. Participated in the Training of Trainers workshop for the Adaptation of the Nigerian Agricultural Enterprise Curriculum (NAEC) for agro input suppliers. The event took place between 17 th and 21 st November, v. Reviewed the component based activities contained in the 2015 AWPB. vi. Developed a database of the AEHS providers across the 6 Core States 3.4. Component 4: Support to the Agricultural Development Programs, Sponsored Research and On-Farm Demonstrations. This component was designed to scale-up by financing additional activities such as: (i) Research-Extension- Farmer-Input Linkage System (REFILS) and related activities targeted towards the production cluster where links would be made to the Agricultural Research and Technology Transfer Centre(ARTTC) system being funded by WAAPP in order to ensure complementarities; (ii) integration of nutritional advice/information to extension delivery; (iii) promotion of e-extension services in the production cluster; (iv) Adaptive research and on-farm demonstrations; (v) quality control and assurance for extension service delivery by FDAE; (vi) strengthening capacity for extension delivery; and (vii) seed multiplication Component 4 Achievements i. Successfully conducted orientation training for MTs for six (6) Fadama III AF core States. The orientation ii. iii. iv. training provided a platform for the MTs to re-learn skills in FFS. The training was held at NAERLS, Zaria Received World Bank s No Objection to conduct exercise across the 6 Core States Successfully conducted step down training in the States of Kogi, Enugu and Anambra Supported National Root Crops Research Institute (NRCRI), Umudike to conduct their zonal REFILS workshop 3.5. Component 5: Matching Grant Facility for Assets Acquisition through FUGs and EIGs. This component will be scaled-up to support the gender and youth empowerment agenda of the ATA with two subcomponents: a) Inclusive targeting and gender equity in service delivery, and (b) the agricultural machinery hiring service. (a) Inclusive targeting and gender equity: The component will specifically focus on ensuring effective and inclusive targeting of women farmers, equitable access to services and matching grants as well as other forms of targeted support, including improved information and communication strategies targeting poor women farmers and action gender research initiatives, pilots and impact evaluations that ensure that women farmers get equitable access to services provided under other parts of the project. (b) Agricultural Machinery: Given that women and youth farmers often appear in particular parts of the agricultural value chain, the component will support targeted value chain analyses and seek to expand the economic opportunities of these farmers wherever they are in the value chain- i.e. both crop producers and FADAMA III AF 4 TH QUARTER PROGRESS REPORT Page 11

12 agro-processors. Further, at least fifty per cent (50 percent) of the funds provided under this sub-component will be given to women and youth farmers through a matching grant facility same as the existing one under the parent project. Other farmer groups will be eligible to the remaining 50 percent of the matching grant facility which Will support the Apex farmer association to own and operate Agricultural Equipment Hiring Enterprise (AEHE), under the private sector driven mechanization intervention of the FGN to provide services to the farmers in the production cluster Component 5 Achievements: Within the reporting period, the following achievements were recorded: This component has succeeded in identifying farmers by gender for the 100ha in Kogi State. While 92 male youths were registered only 11 females were recorded, which implies ratio 9:1. While Anambra State registered 2946 farmers, 1956 males and 990 females representing ratio 7:3 Enugu succeeded in registering 1,103 farmers, 548 males and 555 females meaning ratio 5:5. In Kano State, for rice, 494 farmers were registered, 467 males and 27 female, representing ratio 9.9:0.1, for tomato, 472 farmers were registered, 380 males, and 92 females representing ratio 8:2, for sorghum, 624 males and 108 females meaning ratio 9:2. Meanwhile in Niger State, 500 farmers were registered, 427 males have been recorded and 73 females, representing ratios 8.5: 1.5 and Lagos has 134 registered farmers with 93 males and 41 females making ratio 7:3 3.6 Component 6: Project Management, Monitoring and Evaluation. The AF would support the continued operation of the National Fadama Coordination Office (NFCO) with limited support to the SFCOs where AF is operational. Support to the operating costs of the SFCOs in the participating states would be borne by the States as agreed during negotiations. This component finances: (a) technical assistance to national, state, and community/catchment level implementation coordination; (b) Project coordination; and (c) Project monitoring and evaluation. The eligible expenditures include: goods, equipment, vehicles, special studies (including gender research, pilots and impact evaluation), including exchange visits; training of project staff and incremental operating costs, including funds for the operations and maintenance of Fadama House. Provisions are made to support the Federal Department Agriculture Extension (FDAE), in the form of limited equipment and goods and for enhancing the data collection and analysis capacity of the Supervising Ministry. The State Government of the participating States would be required to maintain their respective SFCOs as part of an implementation agreement with the Federal Government. The details of this arrangement would be outlined in the amended Subsidiary Agreement of the Parent Project satisfactory in form and substance to the Association. The amended Subsidiary Agreement has to be executed on behalf of the Recipient and the Participating State concerned, as a condition for disbursement of additional finance in respect of activities taking place in that Participating State, in accordance with the provisions of Section IV.B. 1(b) (ii) of Schedule 2 to the Financing Agreement Component 6 Achievements: Monitoring & Evaluation FADAMA III AF 4 TH QUARTER PROGRESS REPORT Page 12

13 i. Fadama III AF Baseline Survey: Fadama III AF Baseline commenced within the quarter. The training of Enumerators was supervised and adequately monitored by The M&E NFCO team. NFCO Team comprising of MES, MISS and EOII officer participated in monitoring the training of Enumerators and pre-testing of the survey instrument for the Fadama III AF Baseline at Kabba, Kogi State from 9th-11th October, In addition, visit was made to Anambra, Lagos and Kogi States to spot-check the field administration in respect of the AF Baseline Survey between the 9 th and 14 th November, Harmonized observations from the visit were forwarded to the Consulting Firm for their noting. Baseline Report has been submitted to NFCO for review and the review of the report is currently on-going. ii. Fadama III ICR: Thirty four (34) states have submitted their ICR and these include: Abia, Adamawa, Akwa Ibom, Anambra, Bauchi, Bayelsa, Benue, Cross River, Delta, Ebonyi, Edo, Ekiti, Enugu, FCT, Gombe, Imo, Jigawa, Kaduna, Katsina, Kogi, Kebbi, Kwara, Lagos, Nasarawa, Niger, Ogun, Ondo, Oyo, Plateau, Rivers, Sokoto, Taraba, Yobe, Zamfara) while only two states pending ( Borno and Kano). A Consultant has been engaged to harmonize the ICR Reports received from the 34 States. iii. Fadama III Impact Evaluation: A Consulting Firm (International Food Policy Research Institute) has been engaged following all necessary procurement procedure to undertake the end-line impact following clearance of the TOR by the World Bank v. Review of Response to IEG Comment on SLM ICR: Monitoring & Evaluation team coordinated the review of response to IEG comments on SLM ICR. The response has since been forwarded to the World Bank and accepted okay which led to revision of SLM rating from moderate to Satisfactory. vi. Review and Harmonization of Annual Work-plan and Budget for The 2014 AWPB was reviewed and identified items not implemented with 2014 was carried over and harmonized with 2015 AWPB. This was coordinated by M&E/MISS Unit. The draft has since been submitted to the FMARD by Management for clearance and further onward submission to the World Bank for No Objection Management Information System i. Uploading of Fadama III Data into the Panex: All the eighteen States that have successfully installed the Software have commenced data upload for Fadama III activities and report of completion is being expected as an input into the project Implementation Completion Report (ICR). Yobe State still remain the only State that could be said to have completed data upload and have been able to generate report which is currently being used to test run the server at the NFCO. ii. Uploading of Fadama III AF Data into the Panex: Only four out of the six core States of Fadama III AF have so far installed the Panex software and are expected to have commenced the uploading of preliminary data for the Production Groups and Clusters. However, the NFCO is still awaiting States report in this regards. iii. Fadama III AF Farmers and Staff Database: The MIS and ICT units have been able to design and develop an online Fadama III AF Farmers System, aimed at providing supplementary information to the Panex software. The Fadama III AF farmers database has been fully developed and as at December, 2014, about 113 Facilitators have been registered and authorized to register farmers in the system. A test run is currently being carried out across the six core participating States. As at the time of this report, Kogi State has successfully test ran the software and registered about 15 farmers. FADAMA III AF 4 TH QUARTER PROGRESS REPORT Page 13

14 PROCUREMENT Works i. The installation of lift in the Fadama House was completed in November ii. Evaluation of feasibility studies and design construction and rehabilitation of irrigation facilities in Kano, Lagos, Enugu, Anambra and Niger was carried out in November iii. Issued quotation Solicitation letter for the drilling of 6Nos Industrial test Boreholes in Alape from November 12 th iv. Reviewed and forwarded TOR for the evacuation of power from Obajana Power substation to Alape SCPZ on December 12, Goods: i. The contract for the upgrade of Fadama GIS laboratory had been completed and the equipment supplied and installed by October 28 th ii. The production of News letter has been completed and supplied on 13 th October iii. Internet connectivity was 100% completed in October iv. Solicited for quotations for the Production of Pamphlets on Sorghum and FFCA Operation Manual were issued out on October 22 nd, 2014 and firms have sent in their quotations which were evaluated. v. Issued quotation Solicitation letter for the supply of office consumables and printing of office supplies from November 12 th 2014; evaluated quotations on November 27 th 2014 and issued out award on November 28 th vi. Contract for the supply of 30 No motorcycles was completed in November vii. Contract for the printing of Stationery was completed in December viii. Contract for the supply of Office consumables was completed in December ix. Production and supply of Pamphlets on Sorghum and FFCA Operation Manual were completed in December Consultancy Services: i. Draft TOR for the Feasibility studies and design of irrigation facilities in the core States of Fadama III AF was transmitted to the World Bank for further review and clearance on October 9 th The Draft TOR was further reviewed and sent to official staff concerned on the 22 nd of October ii. Technical Assistance on Nigeria fertilizer Regulatory capacity building road map and 2014 work plan and budget has been concluded but the final report is yet to be finalized as at October iii. TOR on Technical assistance for Business Plan Preparation was reviewed on the 21 st of October iv. Requested for No Objection to review the proposed support to SCPZ and its update to NFCO procurement plan to reflect the activity under the approved support to the project on October 24, v. Consultant has commenced work on Technical assistance for Business Plan Preparation. vi. Draft TOR for the engagement of Media Consultant for Fadama III AF was forwarded to the NPC for on ward transmission to the TTL for clearance on November 7 th vii. Sent a reminder to the shortlisted consultant for the Request of formal proposal for the conduct of end line impact study for Fadama III Project (which was to be due on October 27 th 2014), on November 10, viii. Terms of Reference on the harmonization of states ICR Report was forwarded to NPC for onward transmission to the Bank on 13 th, November ix. Request for No Objection for the commencement of the procurement procedures on the facilitation of setting up of SCPZ PMU, Survey on evacuation of power from Abajana o Alape and drilling of 6No test industrial boreholes in Alape was sent to the NPC November 13 th x. Contract on Technical Assistance for Business Plan Preparation and review was completed on December 03, FADAMA III AF 4 TH QUARTER PROGRESS REPORT Page 14

15 xi. xii. xiii. Advertisement for requesting Expression of Interest from eligible and qualified firms for the (i) Facilitation of setting up of PMU in Alape SCPZ project; and (ii) Survey on evacuation of power from Obajana to Alape was issued on two (2) national dailies on December 8 th Rapid review of the proposal for the Fadama III end line study was carried out and sent to the consultant on 29 December Reviewed the TOR for the review of resettlement policy framework seeking for services of an individual consultant to conclude the review of RFP document for submission to the World Bank on 29 December FINANCIAL MANAGEMENT 1. COUNTERPART FUND PAYMENT STATUS: The State Government of Kogi, Anambra and Niger were the only states that paid their counterpart fund for the year 2014 Additional financing as of December 31 st, 2014 while N80 million Counterpart fund payment was received from the Federal Government into NFCO AF account within the reporting month th QUARTER 2014 INTERIM FINANCIAL REPORT (IFR): Preparation and submission of 4th quarter, 2014 Interim Financial Report (IFR) for projects under Fadama III (i.e. Comp IV, FIKS, NFCO (parent) and Fadama III AF) is in progress, while reminder have been sent to States on the submission deadline, which is 45 days after the end of each quarter. 3. FADAMA III- AF DISBURSEMENT / DRAWDOWN STATUS: i. Two Withdrawal Applications No 050 for NFCO (main) and 036 for Comp IV were prepared and submitted to World Bank being the final documentation for the designated accounts and none was prepared for Fadama III AF during the reporting quarter. ii. The total IDA drawdown for FADAMA III-AF as of 31 st December, 2014 still stood at US$31,025, out of which US$23,238, and N29,359, were the cash available in our IDA Dollar and Naira account accordingly, with our commercial bank, while the actual disbursed amount was US$1,573,291:75 out of the approved amount of US$200,000,000:00, representing 15.51% drawdown and 0.79% disbursed as achievement at the end of December FADAMA III (PARENT) DISBURSEMENT STATUS: i. The drawdown /disbursement status of overall Fadama III project still stand at US$235,815, representing 99.95% achievement. ii. NFCO still stood at US$14.109million (inclusive of FADAMA HOUSE funding) representing over 100% achievements. iii. Component IV drawdown / disbursement still stands at US$6.680millon representing 100% achievement. iv. FIKS total drawdown status as at 31 st December, 2014 was US$2,586, representing 94.28% achievement. 5. REFUNDING OF OVERDRAWN AMOUNT: i. Tremendous efforts are being made towards recovering of the remaining overdrawn balances from the concerned States. During ICPR meeting at the World Bank country office Abuja in the month of November 2014, the TTL used the platform to remind concerned States the need to refund the overdrawn amount from their allocation. ii. Also a letter was written along with World Bank treasury account details and disbursement status due for each State was given to them, while a deadline was set for the final date of the refunding. So far only one (Kwara) State has responded to the letter 6. SUBSIDIARY FINANCING AGREEMENT: There is tremendous progress about issue of subsidiary financial agreement with the Federal Ministry of Finance as at the reporting period. 7. THE FADAMA III AVAILABLE BALANCE AS PER CLIENT CONNECTION: FADAMA III AF 4 TH QUARTER PROGRESS REPORT Page 15

16 Based on the World Bank team review of the status across the States, the balance of US$605, as per client connection was shared for only seven (7) States that were yet to fully utilize their IDA allocation, while reimbursement were limited to Consultancy and Grants categories only and the sharing ratio was broken down in this wise: S/No STATES AMOUNT (Ceiling) USD $ 1 Anambra 75, Benue 50, Ebonyi 75, Edo 85, Ekiti 45, Kano 75, Borno 200, Total 605, In respect to the above available balance breakdown, 5 States have already claimed their own allocation while Anambra State had not applied as at the reporting date and Ebonyi State had a little challenge with their intermediary bank but the issue are almost 95% resolved. 8. FADAMA III-AF State Flexible Accounting Software: AF FADAMA III Flexible accounting software posting for 4 th quarter, 2014 is in progress while that of AF States upgrading of software by Tokun s International is still in progress ENVIRONMENT AND GEO-INFORMATION SYSTEM The project under Environment and GIS units has reviewed the soil and water base line study for Fadama III project as a guideline for soil study in Fadama III AF lands. Other achievements recorded within the quarter consisted of: i. Successfully conducted the screening of the 100ha Cassava intervention in 4 different locations of 25ha each and had been cleared by the Word Bank. ii. A generic ESMP of the 4 locations 100ha has also been done. iii. Received 12 Environmental and Social Safeguards Reports from 11 States out of the thirty six (36) States that participated in the Fadama III Project including FCT. iv. The initial review of the Environmental and Social Audit of the 12 States so far received is ongoing. v. Initiated a discussion with NAIC with regards to the insurance cover for the farmers under Fadama AF. vi. A reminder message was sent to the remaining States who had not submitted their Audit reports(rmp) vii. Working with the Agri Business team to further explain the ESMP as contained in the Business Plan to the States/Facilitators viii. Installation and activation of the newly procured ArcGIS ix. Training on the use of the newly acquired model (GPSMAP 62st) of Global Positioning Systems (GPS). x. Reviewed the coordinates on the Business Plans submitted by Kogi, Lagos, Kano, Niger and Enugu States xi. Production of Agro-ecological Zone maps of Nigeria for the ATA Consultant Team 4. IDENTIFIED CHALLENGES: It is considered imperative to briefly mention a few of challenges identified that has impeded implementation of project which also require prompt attention. 1. Counterpart Fund Payment Status: FADAMA III AF 4 TH QUARTER PROGRESS REPORT Page 16

17 Counterpart payment by State and Federal Government remains an impediment to project implementation. At the time of this report, three (3) comprising of Anambra, Kogi and Niger States have paid the GCC for The attention of the remaining three core States: Kano, Enugu and Lagos, being part of the first set of States to participate in AF has been drawn to this critical issue, and being one of the conditions that must be met by State Government, the States Project Coordinators (SPCs) have been adequately informed to follow up with their State Government and with the Federal Ministry of Finance to ensure the Counterpart Fund is paid 2. Uploading of Data into Panex Software considered labour and cost intensive. 5. RECOMMENDATIONS: 1. NFCO needs to do a close and constant follow up with SPCs of States for the payment of their Counterpart Fund. 2. Need to pay prompt attention to participating State to fast-track signing of Amended Subsidiary Financing Agreement. 3. Restructuring of State PIUs should be speedily completed. 4. Prompt completion of Business Plan for Production Groups/Production Cluster across the value chain crops. 5. Capacity building for all MIS stakeholders to keep abreast of modern trends including step down trainings. 6. The use of dedicated net-book computer (or Android Phones) for data collection and transfer/uploading by facilitators. 7. Dedicated desktop computer - Intel(R) Core (TM) i3-2350m, CPU 2.30GHz 2.3 Installed Memory (RAM) 6.00GB, System type 64 Bits. 6. ACTION PLAN FOR 2015 FIRST QUARTER Review of activities for 2015 first Quarter as contained in AWPB and follow up for its Implementation. FADAMA III AF 4 TH QUARTER PROGRESS REPORT Page 17

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