Aide memoire

1. 
   INTRODUCTION AND ACKNOWLEDGEMENTS
   

1. A joint team¹ of World Bank/Government of Sierra Leone carried out an implementation support mission (ISM) during the period November 21 – December 2, 2011. The objective of the mission was to review overall progress in the implementation of project activities after the Additional Financing was approved on May 19, 2011. Specifically, the ISM focused on reviewing: (i) the institutional arrangements and project management, annual work plans, procurement, audit and financial management, compliance with agreed upon covenants, including environmental and social safeguards and (monitoring and evaluation; (ii) strategies for the rehabilitation of feeder roads; (iii) construction of community infrastructure; (iv) delivery of matching grants; (v) support to farmer based organization; and (iv) safeguards due diligence.

2. 
   CONTEXT
   

4. The Sierra Leone Rural and Private Sector Development Project (RPSDP) was approved by the Board of Directors in August 2007 and became effective on June 30, 2008. The objective is to improve efficiencies along the value chain of agricultural commodities with higher benefits flowing to producers. The project has four components: (a) Domestic Market Improvement; (b) Agricultural Export Promotion; (c) Farmer-Based Organizations and Technology Improvement and; (d) Project Management, Monitoring and Evaluation and Policy Regulations. After experiencing effectiveness and implementation delays the project was eventually restructured in August 2009 due to unsatisfactory performance in project implementation. The performance thereafter improved and the Bank provided additional financing in the amount of US20m in 2011 to further support scaling up of feeder roads rehabilitation, support for the cocoa sector and capacity development of farmer based organizations.

3. 
   KEY FINDINGS/PROGRESS OF IMPLEMENTATION
   

6. Most of the previous agreements reached with the borrower have been implemented (See Annex 2). And considerable progress has been achieved in project implementation as most of the planned activities under the 2011 work plan have been completed. However, a new and a major problem with regards to compliance with fiduciary covenants has emerged, which if not resolved timely might jeopardize the gains achieved so far and stall project implementation and raise a risk flag. The approval of the additional finance was based on the assurance made to the World Bank Board of Directors that “ the PCU will be maintained in its present form to ensure effective inter-sectoral coordination and provide fiduciary support to all implementing agencies”. The implementing agencies of the project are MAFFS, Ministry of Trade and Industry, Ministry of Local Government and Rural Development, Ministry of Works, Housing and Industry and their respective agencies. The fiduciary responsibility was contracted to KPMG in 2008. The mission was made to understand that the contract expired on September 30, 2011 and has not been renewed. This implies that the projects associated with the PCU have been without legally binding financial, procurement and grant management functioning authority for two months. This is a breach of the covenants of the Financing Agreement dated June 29, 2011 Schedule 2 Section IA. The mission recommends that the four Ministers representing the implementing agencies mentioned above should meet under the chairmanship of the Minister for Finance and Economic Development (MOFED) as a matter of urgency to rectify the situation. The inability to resolve the issue may lead to undesirable consequences such the invocation of Article VI Section 6.02 of the General Conditions for Credits and Grants for the suspension of the project. The vacuum created by the absence of a legally constituted team to carry out fiduciary responsibilities affects all other projects whose approval was linked to the existence of the RPSDP PCU, including the WAAPP which might face effectiveness challenges.

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9. Project implementation is rated satisfactory. All project components and activities have progressed quite satisfactory. Project management, however has been weakened by the resignation of the M&E Officer. It is recommended that the project recruits a new one together with the proposed recruitments for WAAPP through UNOPS to save cost and time.

15. Knowledge Management and Technical Assistance to Improve Access to Market Information: The project supported capacity building of key staff of the Planning, Evaluation Monitoring and Statistic Division (PEMSD) of MAFFS in radio presentation and ethics as well as in group marketing skills, as part of its support to the implementation of the Domestic Market Information System and the Export Information System. The proposed National Agricultural Management Information System (NAMIS) developed by SLIEPA but taken over by MAFFS is yet to take off. The mission had in earlier mission recommended the project to support SLIEPA to host the NAMIS and reiterates the need for the MAFFS to cooperate to make the NAMIS operational. Meanwhile, the Export Trade Information System is almost fully operational except for a few challenges. The mission requested SLIEPA to submit a work plan detailing steps to make the system fully operational. SLIEPA is almost at the point to fully cost the operation of the system and proposes to charge a fee for the use of the facility.

16. Introduction of High Yielding Crop Varieties: The project continues in its efforts to support cocoa farmers to replant their aging farms with improved planting materials in the cocoa growing districts. Under this scheme over 156000 cocoa seedlings have been raised and distributed to farmers at a cost of Le2000/seedling. Given, the high demand for proved planting materials, more nurseries should be raised closer to the farmer, at the sectional level to improve access to improved seedlings.

20. Access to Improved Agricultural Technology and Practices: Under this sub-component, the project is supporting the Sierra Leone Agricultural Research Institute (SLARI) to help farmers to adopt improved agricultural technologies to improve farm level productivity and increase production. A total of 197 farmers from 73 FBOs have been supported to undertake multiplication of planting materials on cassava while 252 others from 84 FBOs are engaged in the multiplication of improved rice varieties. The mission noted that progress has been made in some districts notably, Moyamba and Bo, largely due to the involvement and oversight responsibilities provided by the Chief Administrator and agricultural officers. The mission recommends a review of the entire scheme and support provided to districts which show signs of seriousness. In addition, extension officers in those districts should be supported with fuel for their motor bikes to visit and guide the farmers involved in the seed and planting material multiplication scheme

It is noted that the sustainability of the satisfactory FM rating of SL RPSDP and smooth implementation of the project depends on maintaining acceptable FM arrangement including a robust control environment, amongst other requirements.

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  Continuous monitoring of land related issues especially for the construction of Markets which will be bigger than what is required by the FBOs and therefore likely to result in some impacts
  
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  The Feeder road assessment should include both social and environmental impact assessment as part of the reports. Assessment report without information on potential social and environmental impacts should be considered incomplete.
  
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  All Engineers/contractors should have copies of the safeguards documents and PCU should have meeting with all including participating Districts to ensure they are conversant with the guidance from the RPF and ESMF and take needed actions to address any potential impacts.
  
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  PCU should follow up with District Councils on their waste disposal policies and give any form of support that will be beneficial to the project in the long run.
  
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  Continuous visit by the project team should include a District Health officer to check on waste disposal, cleanliness and ensure safety of processed products especially gari and cassava dough.