Overview and Introducing the Project Documents

1. Overview and Introducing the Project Documents NATIONAL FADAMA DEVELOPMENT PROJECT ADDITIONAL FINANCING ORIENTATION WORKSHOP FOR PROJECT OFFICERS DrAdetunjiOredipe Task Team Leader

2. Presentation Outline • Overview of the Project • Alignment with Government Strategy • Project Objectives and Focus • Rationale for the Credit • Why Fadama-AF Platform • Introducing Project Documents • Project Appraisal Document • Financing Agreement • Subsidiary Financing Agreement • Cost Tables

3. Agricultural Transformation Agenda (ATA)Turning Nigeria into a global powerhouse in agriculture • Grow Food • Produce 20 Million metric tons of food by 2015 ( Cassava: 17M, Rice: 2M & Sorghum: 1M) • Create Jobs • Over 3.5 Million jobs by 2015 • Import Substitution • Rice, Cassava, Sorghum and Tomato • Ensure Security “Nigeria can no longer continue to be a sleeping giant. We have to wake up. And if we wake up, we must begin to do things differently” - His Excellency, President Goodluck E. Jonathan GCFR, President, Commander-in-Chief of the Armed forces of the Federal Republic of Nigeria

4. Transformation policies of FMARD • Change the way we work in agriculture • Fix Input System • Fertilizer • Seed • Research and Extension • Fix Infrastructure • SCPZ in 19 Locations across the Country. (Location based on comparative advantage of states to produce/ trade in identified crops • Fix marketing institutions • Establish Private Sector led Marketing Corporations • Fix financial value chains • Recapitalize NACB • NIRSAL (NIGERIAN INCENTIVE-BASED RISK SHARING SYSTEM FOR AGRICULTURAL LENDING ) • Agricultural Insurance • Fix agricultural investment framework( States & Private Sector) • PPP with States • Working in States with Comparative Advantage and Value Chain based. Doreo

5. DONOR SUPPORT TO ATA The FMARD approached donors to complement efforts from line budget • World Bank • African Development Bank • IFAD etc World Bank Support • Fadama-III Additional Financing (200M) to ramp up production for increased food production and Job Creation. • SCPZ Project ( 100M) to provide infrastructure in selected corridors of high potentials ( Kogi, Kano) • AgDPO (1&2) • Restructured CADP to scale up selected value chains Value Chains Supported by Fadama AF • Cassava • Rice • Sorghum • Horticulture (Tomato)

6. Fadama III-AF Credit (Para 15) Fadama-III AF is not Fadama-4 Using Fadama-III Platform, the Federal Government of Nigeria requested Bank support to its ATA, which was adopted in 2011 to: • Improve value chains of Cassava, Rice, Sorghum & Tomato • Work with the private sector • Push for policy reforms in fertilizer subsidy program and liberalization of agricultural insurance and foundation seed production. The proposed AF is intended to be utilized for: • Improving the agricultural public infrastructure and services needed for supporting ATA value chain production clusters for ramping up mass production in states where there is high potential for production and processing. • Inform investments to be made for scaling up the program nationally. • Opportunity for Government to increase its development impact in the agriculture sector

7. Important dates & Legal Covenants(Pages VI & VII) • Project ID :P130788 • Credit Number: 77809 - NG • Board Approved Date: June 28, 2013. • Effectiveness Date: October 21, 2013. • Expected Closing Date: December 31, 2017 • Total IDA Contribution: $200 Million • Government Contribution: $7.95 Million • Beneficiaries Contribution: $42.05 Million

8. Why Fadama III- Platform (Para 16) Using Fadama-III platform would allow the Federal Republic of Nigeria to utilize the existing well performing implementation arrangements of the Project to: • Commence new activities in support of the ATA almost immediately. • FADAMA I, II and III have been successful and change in course will lose the stakeholders momentum with higher start up delays. • The project performances and buy-in of beneficiaries coupled with the continued government support are key factors that were considered to reject other alternatives. • For all these reasons, AF has been considered the best option.

9. Institutional Arrangement ( Para 17) • The FMARD, through its newly created Federal Department of Agricultural Extension, will continue to have overall responsibility for execution of the project • While the NFCO, SFCOs and LG Fadama Desks Office will be delegated with the responsibility of day-to-day coordination of the implementation of the project. • Project implementation and coordination at the production cluster level will be managed by SFCOs. SFCOs will report to NFCO on a regular basis. • The SFCO will be strengthened where necessary with suitably qualified and experienced Agronomist, Engineer and PPP Specialist. These additional experts would be recruited according to transparent and competitive procedures satisfactory to the Government and the Bank. • There are no changes in the procurement administration, and environmental and social safeguard arrangements.

10. Not All States Must Participate( Para 21) • The Project Development Objective, design and institutional arrangements would remain the same as the original project except fine-tuning the institutional and financial aspects of the original project to suit the AF activities. • The proposed AF will support scale up of critical production activities and organization of farmers into clusters or out-grower groups in Lagos, Niger, Kano, Kogi, Enugu and Anambra States because of high potential for productivity and yield of rice, cassava, sorghum and horticultural crops. • Whereas the original project supports activities in all the 36 states and FCT. This implies a phasing out of activities in the states which will not participate in the additional financing activities.

11. Phasing of Project Activities (Para 23) • To allow for continuous improvement in implementation over the course of the project, a phased approach would be adopted. • The phasing or sequencing of the interventions would correspond to the presence of production clusters for the value chains of focus. • AF would give priority to states where clusters of farmers already exist, and there are market opportunities such as mills operating below installed capacity, before moving to states where the project would facilitate the clustering or formation of new groups. • Based on the success of the production clusters and depending on the availability of remaining funds, new clusters which become ready to participate would be designed after one year.

12. Project Intervention Areas in the Core States: • Para 24 – 28 of the PAD Important Cross-Cutting Issues • Para 29- 32 of PAD • Gengder Inclusion • Youth Unemployment • Nutrition

13. Project Beneficiaries (Para 33) • The criteria for selecting participating households would be based on their motivation and commitment up-front, and their willingness to provide counterpart contributions, including O&M of infrastructure. • The target population is overwhelmingly smallholder households (Fadama farmers)-those already engaged in the production of one or more of the selected value chains (cassava, rice, sorghum and horticulture) on operational holdings of 0.25ha-2ha, and • The young farmers—the agro-preneurs—who are the new entrants into agricultural enterprise, on average operational holdings of 2-5ha. • On average, the project is estimated to reach about 317,000 direct beneficiary households and 1.4 million indirect beneficiary households.

14. Introducing Project Documents • Project Appraisal Document • Financing Agreement • Subsidiary Financing Agreement • Cost Tables • Project Implementation Manual

15. The Best Team: Thank You