Enhancing the Resilience of Agro-ecological Systems Project

192 Pages·2016·3.04 MB·English

by  Jessica Troni

Republic of Malawi

Enhancing the Resilience of Agro-ecological
Systems Project (Global Environment Facility -
Integrated Approach Pilot)
Detailed design report

Main report and appendices

Document Date: 19-Apr 2016
Project No. [Insert project number]
Report No: [Insert report number] [If not final PDR delete line]
East and Southern Africa Division
Programme Management Department
Contents
Currency equivalents iv
Weights and measures iv
Abbreviations and acronyms v
Map of the project area vii
Executive Summary viii
Logical Framework xiv
I. Strategic context and rationale 1
A. Country and rural development context 1
B. Rationale 4
II. Project description 11
A. Project area and target group 11
B. Development objective and impact indicators 13
C. Outcomes/Components 13
D. Lessons learned and adherence to IFAD policies 22
III. Project implementation 24
A. Approach 24
B. Organizational framework 25
C. Planning, M&E, learning and knowledge management 26
D. Financial management, procurement and governance 29
E. Supervision 30
F. Risk identification and mitigation 30
IV. Project costs, financing, benefits and sustainability 32
A. Project costs 32
B. Project financing 33
C. Summary benefits and economic analysis 34
D. Sustainability 35
Appendix 1: Country and rural context background 37
Appendix 2: Poverty, targeting and gender 42
Appendix 3: Country performance and lessons learned 57
Appendix 4: Detailed project description 62
Appendix 5: Programme for Rural Irrigation Development Programme Description 83
Appendix 6: Institutional aspects and implementation arrangements 91
Appendix 7: Planning, M&E and learning and knowledge management 96
Appendix 8: Financial management and disbursement arrangements 110
Appendix 9: Procurement 114
Appendix 10: Key Terms of Reference 117
Appendix 11 Project cost and financing 124
Appendix 12: Economic and Financial Analysis 145
i
Appendix 13: Draft project implementation manual 161
Appendix 14: Compliance with IFAD policies 162
Appendix 15: Contents of the Project Life File 173

List of Figures
Figure 1 ERASP Theory of Change 7
Figure 2: Schematic of PRIDE’s targeting of scheme cluster areas 84
Figure 3: PRIDE: Community planning and investment agreements (CPIA) process 85
Figure 4 PRIDE-ERASP organisational framework 94
Figure 5 ERASP Funds Flow Chart 113

List of Boxes
Box 1 Gender gaps at a glace 45
Box 2 Community natural resource management project restores the river and people’s livelihoods in
Balaka District 1
Box 3 The benefits of bees in Northern Malawi 1
Box 4 Impact assessment tools implemented through Component 3. 80

List of Tables
Table 1 Main points of complementarity between ERASP and PRIDE 5
Table 2 First 6 months work plan 25
Table 3 Risks and risk mitigation strategy 30
Table 4 Project Costs Summary, by Year and by Component (base costs, 000 USD 32
Table 5 Project Costs by Expenditure Categories 32
Table 6 Project Financing Plan (000 USD) 33
Table 7 Land use change in Malawi from 1991 to 2008 39
Table 8 Household reporting of crop cultivation and crops sales 43
Table 9 Input use, Crop Stand and Management (plot level, percentages reported) 44
Table 10 Average income and asset variables 48
Table 11 Income, food security and key assets by district EPAs and gender 49
Table 12 Crops grown in the EPAs of the four districts in the 2014/2015 cropping season 51
Table 13 Livestock owned by household in the EPAs of the four districts 52
Table 14 Targeting strategy matrix 53
Table 15 Gender targeting matrix 54
Table 16 Irrigation schemes short-listed for PRIDE 83
Table 17 Estimated beneficiary population for PRIDE pre-selected scheme cluster areas 84
Table 18: Summary of main monitoring, evaluation, reporting requirements & responsibilities 98
Table 19 Summary of key elements of KM and communication plan 103
Table 20 PRIDE Procurement thresholds 115
Table 21: Inflation Rates 125
Table 22: CPPP Rates 125
Table 23: Taxes, duties and foreign exchange by expenditure category 126
ii
Table 24: ERASP Costs Summary, by Year and by Component 126
Table 25: PRIDE Programme Costs Summary, by Year and by Component 127
Table 26: ERASP/PRIDE Expenditure and disbursement accounts 127
Table 27: ERASP Costs by Expenditure Categories 127
Table 28: ERASP Financing Plan (000 USD) 128
Table 29: ERASP Financing Plan (000 USD) 128
Table 30: PRIDE/ERASP Financing Plan (000 USD) 129
Table 31 Components Project Cost Summary 130
Table 32 Expenditure Accounts Project Cost Summary 131
Table 33 Expenditure Accounts by Components 132
Table 34 Project Components by Year 133
Table 35 Components by Financiers 133
Table 36 Expenditure Accounts by Financiers 134
Table 37 Disbursement Accounts by Financiers 135
Table 38 Local/Foreign/Taxes by Financiers 136
Table 39 Project Components by Year – Investment/Recurrent costs 137
Table 40 Expenditure Accounts by Years -- Totals Including Contingencies 138
Table 41 Multi-stakeholder institutional framework 139
Table 42 Scaling up catchment level, sustainable land management practices 140
Table 43 Monitoring and assessment of ecosystem services, resilience and food security 141
Table 44 Project Coordination 143
Table 45: List of HH Financial Models 147
Table 46: Computation of discount rate to be used in the financial analysis 148
Table 47: Financial returns for HH business models 149
Table 48: Direct Project Beneficiaries and Phasing 149
Table 48: Sensitivity analysis for informed decision-making 152
Table 50: Risk analysis 152
Table 51: Additional benefits 153
Table 52: Environmental externalities 153
Table 53: Baseline models 154
Table 54 Compliance of ERASP with IFAD policies 163
Table 55 Climate Risk Screening 172

iii
Currency equivalents
Currency Unit = Malawian Kwacha (MK)
US$1.0 = MK 580

Weights and measures
1 kilogram = 1000 g
1 kg = 2.204 lb.
1 kilometre (km) = 0.62 mile
1 metre = 1.09 yards
1 square metre = 10.76 square feet
1 acre = 0.405 hectare
1 hectare = 2.47 acres

iv
Abbreviations and acronyms
ASWAp Agriculture Sector Wide Approach
AWPB Annual Work Plan and Budget
CA Conservation Agriculture
CAADP Comprehensive Africa Agriculture Development Programme
CAMP Catchment Area Management Plans
CBNRM Community-based Natural Resource Management
COSOP Country Strategic Opportunity Programme
CRT Conventional Ridge Tillage
CMC Catchment Management Committee
DADO District Agriculture Development Officer
DAES Department of Agriculture Extension Services
DATAR Diversity Assessment tool for Agro-Biodiversity and Resilience
DC District Councils
DIO District Irrigation Officer
DOI Department of Irrigation
EAD Environmental Affairs Department
EIRR Economic Internal Rate of Return
EPA Extension Planning Area
ERASP Enhancing the Resilience of Agro-Ecological Systems Project
Ex-Act Ex-Ante Carbon Balance Tool
FAO Food and Agriculture Organisation
FGDs Focus Group Discussions
FISP Farm Input Subsidy Programme
FMA Financial Management Assessment
FY Financial Year
GALS Gender Action Learning System
GAPs Good Agricultural Practices
GEBs Global Environmental Benefits
GDP Gross Domestic Product
GHG Greenhouse Gas Emissions
GEF Global Environment Facility
GEF-IAP-FS GEF Integrated Approach Pilot Program Fostering Sustainability and Resilience for
Food Security in Sub-Saharan Africa
GFCS Global Framework for Climate Services
GIS Geographical Information System
GOM Government of Malawi
HH Households
ICT Information and Communications Technologies
IFAD International Fund for Agricultural Development
IRLADP Irrigation Rural Livelihoods and Agricultural Development Programme
IAP Integrated Approach Pilot
KM Knowledge Management
LDSF Land Degradation Surveillance Framework
LRCD Land Resources and Conservation Department
MET Meteorological (Services)
M&A Monitoring and Assessment
M&E Monitoring and Evaluation
MDG Multilateral Environmental Agreements
MEA Millennium Development Goal
MK Malawian Kwacha
MOAIWD Ministry of Agriculture Irrigation and Water Development
MOLHUD Ministry of Finance, Economic Planning and Development
MoFEDP Ministry of Lands, Housing and Urban Development
MoLGRD Ministry of Local Government and Rural Development
MONREM Ministry of Natural Resources, Energy and Mining
MPAT Multi-dimensional Poverty Assessment Tool
MTR Mid-Term Review
NAPA National Adaptation Programme of Action
NASFAM National Smallholder Farmers Association of Malawi
NCCIP National Climate Change Investment Plan
NEAP National Environmental Action Plan
v
NGO Non- Government Organisation
NRM Natural Resources Management
NPV Net Present Value
NTFPs Non-Timber Forest Products
NRM Natural Resource Management
NSO National Statistics Office
ODPP Office of Directorate of Public Procurement
PCO Programme Coordination Office
PDO Project Development Objective
PCR Project Completion Report
PRIDE Programme for Rural Irrigation Development
RIMS Results and Impact Management System
SAPP Sustainable Agriculture Production Programme
SDG Sustainable Development Goal
SLM Sustainable Land Management
TA Technical Assistance
TLC Total Land Care
ToC Theory of Change
UNDP United Nations Development Programme
USD United States Dollar
VFAs Village Forest Areas
VNRMC Village Natural Resource Management Committee
WRU Water Resource Unit
WUA Water User Association

vi
Republic of Malawi
Enhancing the Resilience of Agro-ecological Systems Project (Global Environment Facility - Integrated Approach Pilot)
Detailed design report

Map of the project area

vii
Republic of Malawi
Enhancing the Resilience of Agro-ecological Systems Project (Global Environment Facility - Integrated Approach Pilot)
Detailed design report

Executive Summary1
1. Background. The Integrated Approach Pilot (IAP) program on Fostering Sustainability and
Resilience for Food Security in Sub-Saharan Africa (GEF-IAP-FS) is co-financed by the Global
Environmental Facility (GEF) and targets agro-ecological systems where linkages between the
need to enhance food security and the opportunities for generating global environmental benefits
are evident. The program aims to promote the resilience and sustainable management of
ecosystems services and to climate-proof food production systems. At the same time, it will
safeguard the long-term productive potential of critical food systems in response to changing
human needs. Anchoring the IAP firmly in local, national and regional policy frameworks will
enable more sustainable and more resilient production systems and approaches to be scaled up
across the targeted geographies. Enhancing the Resilience of Agro-ecological Systems Project
(ERASP) is funded from the Land Degradation, Biodiversity and Climate Change Mitigation focal
areas of Malawi’s GEF allocation.
2. The concept for the ERASP was endorsed by the Government of Malawi (GoM) and
approved as one of 12 country projects in Africa under the GEF-IAP-FS by the GEF Council in
June 2015. Each country project will contribute to the collective impact of the GEF-IAP-FS, which
is intended to inform approaches to food towards win-win solutions between food production and
maintaining ecosystem services, in the face of increased climate variability and shocks. The
regional program will generate knowledge exchange, deliver training; develop knowledge
management products and have an advocacy function which draws upon and creates visibility for
the anticipated success stories from the country projects at the level of sub-regional and regional
bodies within the context of food security debates and policy making. IFAD is the Lead Agency for
the GEF-IAP-FS.
3. ERASP is fully aligned with the GoM’s Growth and Development Strategy II (2011-2016),
the Agricultural Sector Wide Approach (ASWAp) and the 2010 Agricultural Policy, and the 2015
National Climate Change Investment Plan. The project will support the implementation of the
National Water Resources Act passed in 2013, which establishes Catchment Management
Committees for catchment conservation and management and the 1997 Forestry Act which
established Village Natural Resource Management Committees (VNRMCs). The project will
directly contribute to seven of the 17 Sustainable Development Goals (SDG) as well as contribute
to targets and goals of three important UN multilateral environmental Conventions (land
degradation, biodiversity and climate change). ERASP is aligned to the IFAD Strategic Framework
2016-2025, the IFAD 2012-2015 Malawi Country Strategic Opportunities Programme (COSOP)
and the incoming COSOP, which is being designed with a focus on improved access to food,
income and assets as well as enhanced resilience to external shocks.
4. Rationale and Approach. The ERASP will build primarily on the Programme for Rural
Irrigation Development (PRIDE) as the co-financing baseline investment. PRIDE was approved by
IFAD’s board in December 2015 and aims to transform smallholder farming within an intervention
area covering about 15 medium-sized irrigation schemes prioritized in Malawi’s National Irrigation
Master Plan and Investment Framework (2015) in Northern and Southern Malawi. Irrigation
infrastructure, climate-smart agricultural practices for rain-fed and irrigated land and market
linkages are the ‘game-changers’ that will support this transformation. The other baseline

1 Mission composition: Ms Paxina Chileshe, Climate Change Adaptation Specialist; Ms Rikke Grand Olivera, Senior
Technical Specialist, Natural Resources Management, IFAD; Ms Jessica Troni, Economist and Climate Change
Specialist, Consultant (technical team leader); Ms Elisa Distefano, Monitoring and Evaluation Specialist, Consultant;
Mr. Giacomo Branca, Economist, Consultant.
viii
Republic of Malawi
Enhancing the Resilience of Agro-ecological Systems Project (Global Environment Facility - Integrated Approach Pilot)
Detailed design report

investment that ERASP will benefit from is the IFAD supported Sustainable Agricultural Production
Programme (SAPP), which will provide support for establishing and/or strengthening village saving
and lending clubs and share approaches to promote conservation agriculture practices.
5. Two risks in the wider landscape may impact medium to long -term sustainability of the
PRIDE irrigation investments. The first is the level of sedimentation washed down from the upper
catchments which has been shown to raise maintenance costs and over time lead to flooding; and
the second is securing sufficient surface water to feed the irrigation systems, considering also the
impacts of climate change on rainfall variability in Malawi. The mitigation of these two risks
requires effective land and water management in the wider catchment area. Secondly, 70 percent
of the hectares covered by PRIDE are rain-fed areas, which used to benefit from surface waters
that have lower flows, many of which run dry for longer periods of the year. This is caused by a
combination of climate change and the effects of catchment degradation including deforestation
and lack of vegetation cover and results in floods as well as dry spells and droughts which
undermine food security and growth.
6. The solution to be supported by this project is an integrated strategy in three main areas.
The first area is joint natural resources management at landscape level through development of
catchment management plans and establishment of catchment management committees,
provisioned for under the 2013 Water Resources Act. The emphasis will be on achieving evidence-
based and coordinated development planning based on a pathway to achieving a shared vision for
resources governance and sustainable use in the catchment. VNRMCs will be formalised and will
be given the tools needed to develop and enforce village level land use plans in line with the
overall catchment plans. The second area of intervention will be to conserve the wider catchment
area and rehabilitate the land, in order to improve ecosystem services and secure the medium-
term benefits of the irrigation investment. This will be done through fuel wood efficiency measures;
promoting sustainable production and harvesting of biomass energy resources from communally
managed woodlots and pilot small biogas systems; and increasing the incentives to protect
forested areas through production of non-forest timber products (NTFPs). Land rehabilitation in
sensitive catchment areas will also be carried out. The third area of intervention will be to improve
soil fertility, soil moisture availability and farm management strategies including diversification of
crop varieties in order to raise agricultural resilience, productivity and nutritional security.
Monitoring and assessment of ecosystem services, resilience and food security in the catchment
areas will be carried out in order to: monitor progress and effectiveness of the implemented
measures; allow for adaptive catchment planning and management; provide evidence for
promoting policy mainstreaming; and strengthen the sustainability of ERASP outcomes.
7. Achieving sustained food security will require increasing the returns from sustainable land
management to a level that enables people to move out of poverty, recognising that this can only
be achieved through an integrated agricultural and natural resources development approach given
the high population densities and small landholdings. The approach taken is a programmatic
blending of complementary development strategies to achieve this objective. The long-term
sustainability of ERASP activities and attainment of the development objective is dependent on,
(a) achieving ownership by the local communities of the catchment management plans
(b) providing the tools and means for those plans to be implemented and enforced, and
(c) realising economic benefits for households and communities from sustainable land
management. ERASP has a strong emphasis on training and skills development and integrated
planning approaches as the means to delivering catchment management benefits.
8. The added value of ERASP to PRIDE lies in three areas. The first is ERASP focuses on
a comprehensive planning process for the sub-catchments, including PRIDE sites, while PRIDE
focuses on the institutional architecture as it relates to the functioning of the irrigation schemes.
The second is that ERASP adds an agro-ecological approach to improving food security which will
ix