INTEGRATED SAFEGUARDS DATA SHEET

CONCEPT STAGE

Report No.: AC3874

Date ISDS Prepared/Updated: 10/01/2008

I. BASIC INFORMATION

A. Basic Project Data

Country: Bolivia / Project ID: P111863
Project Name: BO (AF) Rural Alliances
Task Team Leader: David Tuchschneider
Estimated Appraisal Date: January 26, 2009 / Estimated Board Date: March 26, 2009
Managing Unit: LCSAR / Lending Instrument: Specific Investment Loan
Sector: General agriculture, fishing and forestry sector (30%);Agricultural marketing and trade (30%);Agro-industry (30%);Other industry (10%)
Theme: Rural markets (P);Rural non-farm income generation (P);Rural services and infrastructure (S)
IBRD Amount (US$m.): 0.00
IDA Amount (US$m.): 20.00
GEF Amount (US$m.): 0.00
PCF Amount (US$m.): 0.00
Other financing amounts by source:
BORROWER/RECIPIENT 0.00
Local Govts. (Prov., District, City) of Borrowing Country 0.63
Local Farmer Organizations 4.37
5.00

B. Project Objectives [from section 2 of PCN]

The objective of the project remains unchanged, namely, to test a model to improve accessibility to markets for poor rural producers in the Pilot Areas; thus contributing to the Government’s goal of improving incomes and the quality of life in rural areas. This would be achieved by expanding the Pilot Areas to include new municipalities in 2-3 additional regions of the country, and scaling up project activities as designed in the parent project, namely: (a) promoting strategic productive alliances between different economic players at the local level; (b) empowering rural producers through the development of self-managed grass-roots organizations; (c) increasing access to productive assets and technology; and (d) promoting more effective, responsive and accountable service organizations at the local level.

C. Project Description [from section 3 of PCN]

The parent project finances the following three components: (a) Institutional support, (b) Implementation of rural productive alliances, and (c) Project management. No new components will be added by the Additional Financing, though some minor changes may be introduced at the subcomponent level. The project will be replicated in an additional 2-3 areas of the country.

Component 1: Institutional Support (Parent project: US$ 3.3 million; Additional Financing: US$ 1.6 million). This component finances technical assistance and training to provide the institutional and organizational support needed for the creation of productive alliances at the local level. The component gives a particular focus to the development of the institutional capacity of small producers to become partners in new marketing arrangements with the private sector. The component’s main outputs will be the formation of rural productive alliances and the preparation of viable alliance plans. To realize this objective, the component will, (a) support the implementation of a project dissemination campaign; (b) support collective action and empower groups of rural poor producers; (c) support the process of call for proposals, the preparation of pre-feasibility and feasibility studies and their evaluation and approval; and (d) assist with the organizational arrangements for the formalization of the alliances.

The component has the following sub-components: (a) communication and dissemination, (b) institutional facilitation, (c) capacity building for service providers and local governments, and (d) appraisal of alliances.

Component activities will be replicated in the new areas.

Component 2: Implementation of Rural Productive Alliances (US$ 26.63 million total [IDA: US$ 20.16 million]; Additional Financing: US$ 20.5 million total [IDA: US$ 15.6 million]). The aim of this component is to provide support for the implementation of the rural alliances prepared under component 1. The component’s main outputs will be: (i) to have producers and their marketing partners working together efficiently and effectively in long term relations; (ii) an improved production by the rural poor producers to meet their new market requirements; (iii) adapted systems in the markets to work with the alliances’ small producers; and (iv) the ensured co-participation in alliance plans of service providers and local governments. To achieve these outputs, the project cofinances one or more of these potential alliance members: small producers, market agents and/or local governments. This assistance is be made available for one or more of the following: (a) to co-finance the implementation of producer’s subprojects up to the storage stage; (b) to provide incentives that improve the prospect of alliance members to obtain market-based credit or investment for the implementation of subprojects which include post-production transformation and processing; (c) to co-finance local governments which decide to become alliance members in design and construction of public infrastructure aimed at supporting a local alliance in its productive goals; and (d) to provide technical assistance to market partners to mitigate the relatively higher costs and risks associated with entering into financing and marketing arrangements with small rural producers.

The component has the following sub-components: (a) farmer organizations sub-projects, (b) municipal subprojects, and (c) financing enhancement incentives.

The Additional Financing may not include subcomponent (c), given the absence of demand for it in project implementation. A decision will be made before appraisal on the basis of field evaluations.

Component 3: Project Management. (US$ 4.9 million; Additional Financing US$ 2.8 million) This component’s outputs are the efficient and effective coordination of the project and an M&E system which can measure the improved access to markets by poor producers, and the enhancement in rural incomes. The component achieves this through the provision of technical assistance, goods, equipment and incremental operating costs which support the establishment and operation of a Project coordinating team in Ministry of Rural Development, Agriculture and Environment (MDRAMA), the setting up and operation of a management information system, the implementation of monitoring, evaluation and learning arrangements, and the completion of technical studies. The component also ensures that effective fiduciary arrangements are in place during implementation.

The component has the following sub-components: (a) studies, (b) technical services, (c) financial management, (d) monitoring and evaluation, (e) equipment, and (f) operating costs.

As project management systems are well established and will require only minor adjustments to operate the Additional Financing, financing for this component will cover the incremental costs required to establish and operate project units in each of the new areas, and reinforcement of the central unit to ensure proper safeguard and fiduciary oversight.

D. Project location (if known)

The parent project presently operates in a total of 65 municipalities located in three distinct areas: (a) the northern expansion zone of Santa Cruz, (b) the Cochabamba valleys, and (c) the area around the Uyuni Salt Lake in Oruro and Potosi. The Additional Financing will expand coverage to an additional 2-3 areas. Potential areas to be included are: (a) the Lake Titicaca region, (b) the campesino areas north of the city of La Paz, and (c) the Chaco region.

E. Borrower’s Institutional Capacity for Safeguard Policies [from PCN]

An environmental assessment procedure that complies with Bank and national environmental standards is included in the Operational Manual, and supervision missions have verified that it has been applied effectively in the subproject cycle. The project is managed by a PIU which has a central office (UCN) and regional offices in each project area (UORs). In the UCN, a social and environmental specialist monitors operations, ensures compliance with safeguards, and coordinates the activities of the social and environmental specialists in each of the UORs. Alliances proposing activities included in the project’s negative list are rejected at the proposal stage. Approved subprojects include a short environmental assessment which determines potential impacts and mitigation measures. The latter are included in the subproject agreements, fully financed, and their implementation is monitored by each UOR’s environmental specialist under the oversight and guidance of the UCN. The November 2008 Mid-term Review mission will re-assess implementation of the environmental procedures established for the parent project.

F. Environmental and Social Safeguards Specialists

Mr Francis V. Fragano (LCSAR)

Ms Ruth Llanos (LCSSO)

II. SAFEGUARD POLICIES THAT MIGHT APPLY

Safeguard Policies Triggered / Yes / No / TBD /
Environmental Assessment (OP/BP 4.01) / X
As the Additional Financing would fund producer organization and municipal subprojects similar in scale and scope to those implemented under the original project, it is expected that it will maintain its Category B classification. An EA report is available for the parent project and it will be updated as needed for the Additional Financing. Management of environmental safeguards in the parent project has been satisfactory.
Natural Habitats (OP/BP 4.04) / X
No activities are contemplated in critical natural habitats. Activities that might involve or induce significant conversion or degradation of natural habitats are ineligible and screened out early on subproject identification.
Forests (OP/BP 4.36) / X
The project does not and will not support activities in natural forest areas. Timber subprojects are ineligible, and non-timber alliances may be financed if management plans for the use of the resource are satisfactory.
Pest Management (OP 4.09) / X
A PMP has been approved for the project and it is being applied to all relevant alliances. A review of implementation will be carried out before appraisal to gauge its effectiveness and to propose additional instruments or activities, if needed.
Physical Cultural Resources (OP/BP 4.11) / X
Subprojects that may have a negative impact on physiscal and cultural resources are ineligible, and screened out during the ex ante review of alliances.
Indigenous Peoples (OP/BP 4.10) / X
More than 80% of the population in the potential new areas is indigenous; thus, for the project as a whole, OD 4.10 (Indigenous Peoples) will apply. The Additional Financing will maintain the design features that have made the project compatible with local customs and traditions, while ensuring that indigenous groups participate through a process of informed consultation.
Involuntary Resettlement (OP/BP 4.12) / X
Safety of Dams (OP/BP 4.37) / X
Projects on International Waterways (OP/BP 7.50) / X
If the Lake Titicaca reagion is included as one of the additional project areas, this safeguard may be triggered.
Projects in Disputed Areas (OP/BP 7.60) / X

Environmental Category: B - Partial Assessment

III. SAFEGUARD PREPARATION PLAN

A.  Target date for the Quality Enhancement Review (QER), at which time the PAD-stage ISDS would be prepared: N/A

B.  For simple projects that will not require a QER, the target date for preparing the PAD-stage ISDS: 12/22/2008

C. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing[1] should be specified in the PAD-stage ISDS.

The team will review safeguards implementation under the parent project and will prepare an initial safeguards compliance note during a mission to be completed before the end of September 2008. In this mission, the team will also agree with government the new areas into which the project will expand. This will permit the team to establish which additional studies are required to complement the existing EA and social assessment. All studies are expected to be completed before the end of November 2008.

IV. APPROVALS

Signed and submitted by:
Task Team Leader: / Mr David Tuchschneider / 09/24/2008
Approved by:
Regional Safeguards Coordinator: / Mr Reidar Kvam / 09/29/2008
Comments:
Sector Manager: / Ms Ethel Sennhauser / 09/25/2008
Comments:

[1] Reminder: The Bank's Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in-country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons.