FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

MINISTRY OF AGRICULTURE

AGRICULTURAL GROWTH PROGRAM II (AGP-II)

PROGRAM DESIGN DOCUMENT

January 2015

Addis Ababa

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TABLE OF CONTENT

FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA.................................................................................................... I

MINISTRY OF AGRICULTURE................................................................................................................................. I

AGRICULTURAL GROWTH PROGRAM II (AGP-II).................................................................................................... I

PROGRAM DESIGN DOCUMENT........................................................................................................................... I

ADDIS ABABA...................................................................................................................................................... I

LIST OF TABLES.................................................................................................................................................. IV

LIST OF FIGURES................................................................................................................................................. V

ABBREVIATIONS AND ACRONYMS..................................................................................................................... VI

EXECUTIVE SUMMARY........................................................................................................................................ 1

PART I: BACKGROUND AND STRATEGIC CONTEXT..............................................................................9

1.1. COUNTRY CONTEXT............................................................................................................................91.1.1. General Perspective.............................................................................................................................91.1.2. Sectoral and Institutional Context......................................................................................................101.1.3. Higher Level Objectives to which the Program Contributes..............................................................131.1.4. Lessons Learned and Reflected in the Program Design.....................................................................14

1.2. PROGRAM OBJECTIVES AND SCOPE..............................................................................................151.2.1 Program Objectives.................................................................................................................................151.2.2 Program Target Areas.............................................................................................................................161.2.3 Target Beneficiaries................................................................................................................................171.2.4 Program Design Approach......................................................................................................................18

1.3 ORGANIZATION OF THE PROGRAM DOCUMENT.............................................................................20

PART II: PROGRAM DESCRIPTION........................................................................................................... 22

1. COMPONENT 1: PUBLIC AGRICULTURAL SUPPORT SERVICES.....................................................................22

SUB COMPONENT 1.1 : INSTITUTIONAL STRENGTHENING AND DEVELOPMENT.....................................................231.1.1 Establishing and Strengthening Agriculture Development Partners Linkage Advisory Councils (ADPLACs)......................................................................................................................................................231.1.2 Support to Agricultural Extension Service..........................................................................................261.1.3 Support to Animal Production and Animal Health Services...............................................................291.1.4 Crop Production and Plant Health Services.......................................................................................361.1.5 Support to Natural Resources and Soil Fertility Management Services.............................................40

SUB-COMPONENT 1,2 : SCALING UP OF BEST PRACTICES......................................................................................441.2.1 Identification and Compilation of Best Practices................................................................................441.2.2 Implementation of Best Practices.......................................................................................................45

2. COMPONENT 2 : AGRICULTURAL RESEARCH.............................................................................................46

SUB-COMPONENT 2.1: TECHNOLOGY ADAPTATION AND GENERATION..................................................................472.1.1 Support to Accelerate Release of selected pipe line Technologies ፡-..................................................472.1.2 Support to adaptation and generation of demand driven technologies.............................................48

SUB-COMPONENT 2.2 :PRE-EXTENSION DEMONSTRATION AND PARTICIPATORY RESEARCH SCHEMES.................492.2.1 Support to on-farm pre-extension demonstration activities................................................................492.2.2 Establishment and strengthening of Farmers' Research and Extension Groups (FREGs)..................50

SUB-COMPONENT 2.3-SOURCE TECHNOLOGY PRODUCTION..................................................................................512.3.1 Production of breeder seed and pre-basic seeds of major crop varieties...........................................512.3.2 Mass multiplication of disease and insect free tissue culture materials.............................................51

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2.3.3 Production of source livestock and forage technologies.....................................................................522.3.4 Land and water resources technology multiplication.........................................................................52

SUB-COMPONENT 2.4: CAPACITY DEVELOPMENT TO ENHANCE TECHNOLOGY ADAPTATION, GENERATION, MAINTENANCE AND PROMOTION (PHYSICAL AND HUMAN CAPACITY)....................................................................52

3. COMPONENT 3: SMALLHOLDER IRRIGATIONDEVELOPMENT.....................................................................53

COMPONENT OVERVIEW................................................................................................................................... 53

SUB-COMPONENT 3.1: SMALL-SCALE IRRIGATION INFRASTRUCTURE DEVELOPMENT AND IMPROVEMENT...........553.1.1 Rehabilitation and/or Improvement of Existing SSI Systems..............................................................553.1.2 MicroIrrigation and Household Irrigation Systems............................................................................583.1.3 Establishment of New Small-scale Irrigation Systems........................................................................613.1.4 Capacity Development........................................................................................................................62

SUB-COMPONENT 3.2: INTEGRATED CROP AND WATER MANAGEMENT (ICWM).................................................633.2.1 Formation of Irrigation Water Users Associations.............................................................................653.2.2 Introduction of Improved Irrigated Agriculture Management............................................................673.2.3 Human Resources Capacity Development..........................................................................................68

4 COMPONENT 4: AGRICULTURAL MARKETING AND VALUE CHAIN DEVELOPMENT.....................................69

COMPONENT OVERVIEW................................................................................................................................... 69

SUB COMPONENT 4.1 : SUPPORT AGRICULTURAL INPUT SUPPLY SYSTEM............................................................704.1.1 Support to Promotion and Distribution of Improved Agricultural Inputs............................................704.1.2 Strengthen input /output Regulation and Certification.......................................................................734.1.3 Capacity Building...............................................................................................................................75

SUB-COMPONENT 4.2: SUPPORT TO FARMERS’ ORGANIZATIONS...........................................................................754.2.1 Establishing and Strengthening of Common Interest Group (CIGs)...................................................754.2.2 Establishing and strengthening of Primary farmers ‘cooperative and Cooperative Federation.........764.2.3 Improving access to financial services...............................................................................................774.2.4 Capacity Development........................................................................................................................77

SUB-COMPONENT 4.3: SUPPORT AGRIBUSINESS DEVELOPMENT............................................................................784.3.1 Support to the Coordination of Value Chain Actors...........................................................................804.3.2 Technical Support to Strengthen Competitive Agribusiness Actors....................................................80

SUB-COMPONENT 4.4 SUPPORT MARKET INFRASTRUCTURE DEVELOPMENT AND MANAGEMENT.........................834.4.1 Constructing and Modernized Management of Market Centers.........................................................834.4.2 Support construction and management of warehouses as well as storage, grading and packaging facilities............................................................................................................................................................844.4.3 Development of Small Bridges............................................................................................................864.4.4 Support the Development of Market Information Systems..................................................................86

5. COMPONENT 5: PROGRAM MANAGEMENT, MONITORING, EVALUATION AND LEARNING........................87

SUB-COMPONENT 5.1 PROGRAM MANAGEMENT AND INSTITUTIONAL ARRANGEMENTS.......................................87- Program Administrations........................................................................................................................87

SUB-COMPONENT 5.2 MONITORING, EVALUATION AND LEARNING (ME&L)........................................................915.2.1 Inputs, Outputs and outcomes Progress Monitoring................................................................................915.2.2 Outcome and Impact Evaluation..............................................................................................................935.2.3 Participatory M&E Internal Learning.....................................................................................................945.2.4 Capacity Development of the Program Coordination Unit......................................................................94

SUB-COMPONENT 5.3 CAPACITY DEVELOPMENT ON CROSS CUTTING ISSUES.......................................................95SUB-COMPONENT 5.4 CAPACITY DEVELOPMENT SUPPORT FACILITY....................................................................96

6. PROGRAM FINANCIAL MANAGEMENT AND PROCUREMENT..........................................................................97

6.1 FINANCIAL MANAGEMENT...............................................................................................................................976.2 Procurement Arrangement.........................................................................................................................99

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7. ENVIRONMENTAL AND SOCIAL SAFEGUARDS...............................................................................................112

ANNEX I: PROGAM TARGET WOREDAS............................................................................................................113

ANNEX II: RESULT FRAMEWORK AND MONITORING PLAN...............................................................................119

List of TablesTable 1: Distribution of Target Woredas across Regional States..................................................16Table 2: Estimated AGP II Beneficiaries Disaggregated by Sex..................................................17Table 3: Selected Value chain Products........................................................................................78Table 4: List of Goods Contract Packages to be procured during the initial 18 months of implementation............................................................................................................................106Table 5: List of Works Contract Package to be procured during the initial 18 months of implementation............................................................................................................................107Table 6: List of consulting contracts to be procured during the initial 18 months of implementation............................................................................................................................109

List of FiguresFigure 1: Program logical Model...................................................................................................20Figure 2: Vertical and horizontal linkage of ADPLACs...............................................................24Figure 3: Organizational Arrangements for Implementing AGP II...............................................87Figure 4: Fund Flow Arrangement................................................................................................97Figure 5: Report flow arrangement................................................................................................91

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Abbreviations and Acronyms

ADPLACs Agriculture Development Partners Linkage Advisory CouncilsAECID Agencia Española de Cooperación Internacional para el Desarrollo

( SpanishAgencyfor International Development)AGP I First Agricultural Growth ProgramAGP II Second Agricultural Growth ProgramAGP CU Agriculture Growth Program Coordination UnitAHD Animal Health DirectorateAKAPS Agricultural Knowledge, Attitude and PracticesMade Agribusiness and Market DevelopmentAPFRDD Animal Production and Feed Resources Development DirectorateATA Agriculture Transformation AgencyBCC Behavioral Change CommunicationBDS Business Development ServiceBoA Bureau of AgricultureBoH Bureau of HealthBoWR Bureau of Water ResourceBP Business PlanCAADP Comprehensive Africa Agriculture Development ProgramCASCAPE Capacity Building for scaling up of evidence based best practices in

agricultural production in EthiopiaCB Capacity BuildingCBSPs Community Based Seeds and forage Production groupsCDSF Capacity Development Support FacilityCIG Common Interested GroupsCLPP Community Led Planning ProcessCPS Country Partnership StrategyCSA Central Statistical Agency of EthiopiaCSA Climate Smart AgricultureCU Coordination UnitDA Development AgentsDFATD Department of Foreign Affairs, Trade and DevelopmentDP Development PartnersDSM Direct Seed MarketingEC European CommissionEIAR Ethiopian Institute Agricultural ResearchEKN Embassy of the Kingdom of the NetherlandsELISA Enzyme Linked Immuno Sorbent AssayEPRDF Ethiopian People’s Revolutionary Democratic FrontESA Environmental and Social AssessmentESIA Environment Social Impact AssessmentESMF Environment Social Management FrameworkESMP Environment Social Management PlanEU European UnionEURAP Ethiopia Universal Rural Access ProgramFAO Food and Agriculture Organization of the United Nations

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FCA Federal Cooperative AgencyFCU Federal Coordination UnitFHH Female Headed HouseholdFM Financial ManagementFPPA Federal Procurement and Property Administration AgencyFREGs Farmer Research and Extension GroupsFSC Federal Steering CommitteeFTC Farmer Training CentreFTC MC Farmer Training Centre Management CommitteeGAFSP Global Agriculture and Food Security ProgramGAP Good Agricultural PracticesGDP Gross Domestic ProductGHG Green House GasesGIS Geographic Information SystemGoE Government of EthiopiaGTP Growth Transformation PlanHACCP Hazard Analysis and Critical Control PointsHDI Human Development IndexHEW Health Extension WorkersIAs Implementation AgenciesIBRD International Bank for Reconstruction and DevelopmentICB International Competitive BiddingICT Information Communication TechnologyIDA International Development AssociationIDC Italian Development CooperationIFAD International Fund for Agriculture DevelopmentIFC International Finance CorporationIPM Integrated Pest ManagementISO International Organization for StandardISP Investment Support PlanISSD Integrated Seed Sector DevelopmentIT Information TechnologyITS Input Trucking SystemJRIS Joint Review and Implementation SupportKDC Kebele Development CommitteeLMD Livestock Market DevelopmentM&E Monitoring and EvaluationMDG Millennium Development GoalMDTF Multi – Donor Trust FundME & L Monitoring Evaluation and LearningMFI Micro Finance InstitutionMHH Male House HoldMHI Micro and Household IrrigationMHIS Micro and Household Irrigation SystemsMIGA Multilateral Investment Guarantee AgencyMoA Ministry of Agriculture

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MoFED Ministry of Finance and Economic DevelopmentMoH Ministry of HealthMoT Ministry of TradeMoU Memorandum of UnderstandingMSP Multiple Stakeholder PlatformMTR Mid Term ReviewNADSS National Animal Disease Surveillance SystemNAHDIC National Animal Health Diagnostic and Investigation CentreNAIC National Animal Insemination CenterNARS National Agricultural research systemNCB National Competitive BiddingNGO Non Governmental OrganizationNICETT National Institute for the Control and Eradication of Tsetse

&TrypanosomasisNNP National Nutrition ProgramNRM Natural Resource ManagementNTTCI National Tsetse and Trypanosomosis Control InstituteO&M Operations and MaintenanceOIE Office International des Epizooties (World Organization for Animal

Health)PAD Program Appraisal DocumentPASDEP Plan for Accelerated and Sustained Development to End PovertyPDO Program Development ObjectivePIF Ethiopia’s Agriculture Sector Policy Investment FrameworkPIM Program Implementation ManualPSNP Productive Safety Net ProgramQPM Quality Protein MaizeRARI Regional Agricultural Research InstitutionsRboT Regional Bureau of TradeRCP Regional Cooperative PromotionRED & FS SWG Rural Economic Development and Food Security Sector Working

GroupRMP Residue Monitoring PlanRPLRP Regional Pastoral Livelihoods Resilience ProgramRSC Regional Steering CommitteeRUSACCO Rural Savings and Credit CooperativeRWH Rain Water HarvestingSBD Standard Bidding DocumentSC Steering CommitteeSHF Small Holder FarmersSIT Sterile Insect TechniqueSMS Subject Matter SpecialistsSNNPR Southern Nations Nationalities and People’s RegionsSSI Small Scale IrrigationSTC Short Term ConsultantTA Technical Assistant

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TAD Trans-boundary Animal DiseaseTC Technical CommitteeToT Training of TrainersTTL Task Team LeaderUN United NationsUNDB United Nations Development Business on lineUNDP United Nations Development ProgrammeUSAID United States Agency for International DevelopmentUSD United States DollarVC Value ChainVDFACA Veterinary Drug and Feed Administration & Control AuthorityWB World BankWDC Woreda Development CommitteeWoA Woreda Office of AgricultureWOFED Woreda Office of Finance and Economic DevelopmentWSC Woreda Steering CommitteeWUA Water Users AssociationZOA Zonal Office of Agriculture

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EXECUTIVE SUMMARY

Ethiopia has recorded fast economic growth over the past decade, with an average growth rate of 10.7% per year for the period ranging from 2003/04 to 2011/12. Growth reflected a mix of factors, including agricultural modernization, development of new export sectors, strong global commodity demand and government-led development investments. The GoE is currently implementing the Growth and Transformation Plan (GTP) which sets a long-term goal of becoming a middle-income country by 2025. To achieve the set GTP objectives, the country has followed a “developmental state” model with a strong role for the government in many aspects of the economy. Agriculture remained a dominant sector and an important source of economic growth. According to official statistics, over the past 15 years the average agricultural growth rate has been close to 7% per annum.

Regarding agricultural development investment, concerted efforts have been made by both the GoE and development partners. The Agricultural Growth Program (AGP-I) is a clear example of this collaborative efforts. AGP is a multifaceted investment program supporting agricultural productivity and commercialization focusing on high agricultural potential areas to address some of the key constraints to agricultural growth and thereby contribute to overall economic growth and transformation. It is a program approach and is viewed by Government as the key investment mechanism for development partners and government to collaborate on.

The further growth of the agriculture sector is expected to feature prominently in the second Growth and Transformation Plan (GTP-II), currently under preparation. The proposed program is well aligned with the CPS and would primarily support Pillar One by fostering competitiveness and employment in the agriculture sector as well as addressing cross cutting issues of gender, nutrition and climate change. The Second Agricultural Growth Program AGP II would be aligned with GTP II, thereby contributing to the achievement of targets set for agriculture sector growth. The independent impact evaluations, studies and assessments conducted during the first phase have been used in designing the AGP II to improve implementation and maximize the overall impact of the program.

The Program Development Objective is “to increase agricultural productivity and commercialization of small holder farmers targeted by the Program and also contributes to dietary diversity and consumption at HH level.” Alike the preceding Program, AGP II will also give due attention to the increased participation of women and youth. The program contributes to the higher-level goal of sustainable food security and agricultural transformation by developing untapped potential of well-endowed areas. AGP II will operate in 157 woredas selected from 7 national regional states and one city administration of the country which have the highest growth potential, primarily based on agro-ecological conditions and access to markets. The 96 woredas that were benefited from the AGP I interventions will also be the beneficiaries during the AGP II and this will further consolidate past achievements and strengthen capacities built during the second phase. In the second phase of the program, additional 61 woredas are included. The woredas are distributed among the following national regional states and city administration: Amhara, Oromiya, SNNPR, Tigray, Benishangul-Gumuz, Gambella, Harari and Dire Dawa city administration. The expansion into the new national regional states and Dire Dawa city

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administration would consist of two woredas in each of Benishangul-Gumuz and Gambella, and one in each of Harari and Dire Dawa.

To achieve its objectives, AGP II will follow: (a) Comprehensive schemes responding to national strategic goals; (b) demand driven and decentralized (participatory) approach; (c) focus on selected areas and value chains; (d) considers cross cutting issues particularly, gender, nutrition and climate smart agriculture; (e) sustainable approaches through enhancing capacity of actors development; (e) mechanisms that enhance complementarities and linkages within and between the different components of the Program, and other Programs and projects within MOA.

Program Components

The Program will build on experiences and lessons learnt through the implementation of AGP I and is composed of the following five components: (i) Agricultural Public Support Services; (ii) Agricultural Research ; (iii) Small Scale Irrigation; (iv) Agricultural Marketing and Value Chain, and (v) Program Management, Capacity building and Monitoring and Evaluation. In addition, the program would support the mainstreaming of cross-cutting issues (gender, nutrition and CSA) throughout the above components.Description of each of the components is highlighted below.

Component 1: Agricultural Public Support Services

Agricultural public support services component aims at increasing access to public agricultural services. The component is broadly classified into two sub components; namely, institutional strengthening and development; and scaling up of best practices.

Sub-component 1.1 Institutional strengthening and development

This Sub component is intended to improve the extension delivery services to be more effective, efficient and demand driven. Key proposed interventions are:

Establishing and Strengthening ADPLACs: - This activity would establish and strengthen ADPLACs at regional, zonal and woreda levels. Existing ADPLACs will be strengthened, while new ones will be established in the new national regional states and zones where councils were not established under AGP1.

Supporting agricultural extension services through i) Rehabilitation and equipping of FTCs, ii) Demonstration of improved agricultural technologies; iii) Capacity Development of extension services through bridging physical and skill gaps

for smallholder farmers, FTC’s Management Committees, DAs and Subject Matters Specialist (SMS).

Animal production and Animal Health services:- To increase productivity and production of animals , as well as reduce the prevalence of animal diseases, key areas of Program interventions are as follows:i) Animal production services (a) the establishment of small-scale modern bee queen

rearing demonstration and training centers (b) establishment of fish hatchery centre in

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Amhara region (c) and strengthening National Artificial Insemination Centres (NAIC);

ii) Animal Health Services :- The Program would support the following institutions and systems: a) National & regional laboratories. (i)Improving poultry disease diagnostic

laboratory; (ii) ) strengthening the Central Veterinary Drug and Feed Quality Control Laboratory; (iii) strengthening the diagnostic and analysis capacities of the National Tsetse and Trypanosomiasis Control Institute; and (iv) ) strengthening diagnostic capacities of the NAIC to ensure appropriate testing of the quality of semen according to the recommendations of the World Organization of Animal Health.

b) Strengthening regional animal health laboratories, clinics and health posts; c) Diseases Surveillance of major trans-boundary and zoonotic diseases, and

diseases information system d) Human resources and physical capacity development through a special focus

on training of trainers on animal production and product processing, animal disease surveillance and health management etc.

Crop production and plant health services include: promotion of crop productivity enhancing technologies and strengthening of plant health services.

i) Establishment of nurseries: The Program will use approaches developed under AGP1 to promote and support the establishment of coffee, vegetable and fruit nurseries.

ii) Strengthening Plant Health Services: This intervention is targeting plant health services with an aim to reduce smallholder crop losses, ensure the supply of safe food for the citizens and support plant health for domestic and international trade of plants, plant materials and their products. This will be implemented through

a. establishment of plant quarantine stations, plant health clinics and the supply of critical equipment such as clean and healthy seeds and pesticides;

b. support to the establishment of crop loss data-base through the provision of consultancy services for the establishment of the data base in the Plant Health Regulatory Directorate;

c. the purchase of critical laboratory equipment and supplies for the establishment of an International Standard Pesticide Laboratory;

d. strengthening the Federal Plant Protection Laboratory and regional plant health clinics through the provision of the critical equipment and supplies; and

e. Support to the national seeds quality analysis laboratory through the provision of the critical equipment and supplies.

iii) Capacity development for crop production and plant health services. Activities will initially include the assessment and identification of training needs including workshops, awareness creation activities, and experience sharing visits (local and abroad).

Natural resources and soil fertility management services: The Program would support the strengthening of services to build the productive assets of rural communities in selected community watersheds, to sustainably increase productivity and curtail

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degradation of fragile lands and ecosystems. Key activities to be supported would include:

i) Local Level Participatory Land Use Planningii) Productivity Enhancing Interventions of Community Watershedsiii) Soil Fertility Management Servicesiv) Capacity Development for natural resource management and soil fertility

management. Agricultural Mechanization Services. The aim of the agricultural mechanization

intervention is to develop and promote appropriate tools and machinery for pre and post-harvest agricultural production systems that can result in labor efficiency and effectiveness which would lead to sustained adoption of the yield-increasing technologies, reduce post-harvest losses and create value addition. Agricultural mechanization activities that would be implemented include:

i) Support the development of standards mechanization technologiesii) Train manual pump manufacturers.iii) Provide technical support for agricultural machinery producers, distributors and

service providers. iv) Organize and support operators and maintenance service providers.v) Provide training for spare part providers.

Sub-component 1.2: Scaling up of best practices: -

The objective of this sub-component is to ensure the identification and wider use of best practices and proven technologies to enhance and intensify agricultural production. In consultation with key stakeholders, the extension service will identify improved technologies and management practices in a range of thematic areas related to production, post-harvest handling, value addition and marketing.

Component 2: Agricultural Research

Limited availability of appropriate agricultural technologies, inadequate capacity in multiplying source technologies and limited on-farm pre-extension demonstration of technologies are the key problems hindering productivity of the sector. Thus, the objective of the component is to increase the supply of demand-driven agricultural technologies which directly link to the other components. The component has the following sub components

Sub-component 2.1 - Technology adaptation and generation;-

The program will support the adaptation and generation of improved and innovative technologies to enhance agriculture productivity and commercialization of small scale farmers. The intervention will comprise of two main groups of activities: (i) support to accelerate release of selected in pipeline technologies and management practices; and (ii) support to adaptation and generation of demand-driven technologies.

Sub-component 2.2 - Pre-extension Demonstration and Participatory Research Schemes:-

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This sub-component will aim at enhancing the adoption of the new improved agricultural technologies by adopting a participatory approach involving farmers in research demonstrations and popularization of new technologies. Activities supported by the Program will include: (i) Technology pre-extension demonstration and popularization; (ii) Establishing and strengthening of Farmers' Research and Extension Groups (FREGs).

Sub-Component 2.3 - Source Technology Production

The objective of this sub-component is to support the production of breeder and pre-basic seeds and planting materials and animal breeds for further multiplication and on farm technology pre-extension demonstration. The major activities supported by the program include: (i) Production of breeder seed and pre-basic seeds of major crop varieties; (ii) Mass multiplication of disease and insect free tissue culture materials; (iii) Production of source livestock and forage technologies; (iv) Land and water resources technology multiplication.

Sub-component 2.4 - Capacity development to enhance technology adaptation, generation, maintenance and promotion

The activity will focus on physical and skill gaps in research institutions to effectively deliver the research program based on a detailed human and physical needs assessment of key research institutions at federal and regional level. Possible investment that could be considered within the needs’ assessment could include for example: (i) Physical capacity; (ii) Critical equipment and facilities; and (iii) Human capacity development

Component 3: Small Scale Irrigation.

The objective of this component is to increase the access to and efficient utilization of irrigation water of smallholder farmers thereby increase area and productivity of irrigated agriculture.

Sub-component 3.1 – Small Scale Irrigation Infrastructure Development and Improvement

The main objective of this sub-component is to increase area of irrigated land for smallholder farmers by developing SSI infrastructures to improve the availability of and access to irrigation water. The major activities of the sub component are ;(i) Rehabilitation and/or improvement of existing SSI systems; (ii) promotion and establishment of Micro-Irrigation and Household Irrigation Systems (MHIS); (iii) Establishment of New Small Scale Irrigation Systems; (iv) Capacity development.

Sub-component 3.2 - Integrated Crop and Water Management

The objective of this sub-component is to improve irrigated agricultural productivity and management of selected SSI systems and enhance institutional capacity for integrated irrigation water and crop management through the introduction of improved on-farm irrigation water management, agronomic practices and capacity building interventions for smallholder irrigation systems. The major activities to be financed under this sub component are: (i) Establishing

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and/or strengthening of Irrigation Water Users Associations (IWUAs); (ii) Introduction of Improved Irrigation Agriculture Management; (iii) Human Resources Capacity Development.

Component 4: Agriculture Marketing and Value Chains

The overall objective of this component is to commercialize smallholder farmers through increased access to input and output markets. The component has 4 sub components.

Sub-component 4.1 - Support Agricultural Input Supply System

The main objective of this sub-component is to create access to sufficient quantity and quality of crop and animal inputs through farmer groups, cooperatives and public institutions as well as develop and update guidelines related to input regulation and certification system. The major interventions under this sub component are;

(i) Support to promotion and distribution of improved agricultural inputs through implementing the following main activities a) Establishment and strengthening of Community Based Seeds and forage production groups; b)Support Animal input supply and distribution through Provision of new parent stock for poultry multiplication centers and Strengthening liquid nitrogen production plants ;

(ii) Strengthening Information Technology (IT) based input tracking system; (iii) Support to Direct Seed Marketing (DSM); (iv) Input and output regulation and certification through preparation of residue

monitoring plan for honey and development of regulatory guideline for agricultural mechanization

(v) Capacity Development.

Sub-component 4.2: Support Farmer Organizations

Establishing and strengthening of farmer organizations will be undertaken to boost collective bargaining power and to enhance efficient and sustainable service delivery.Major activities of this intervention are

(i) Establishing and strengthening of Common Interest Groups (CIGs); (ii) Establishing and strengthening of Primary farmers ‘cooperative and Cooperative

Federation(iii) Improving access to financial services; and (iv) Capacity building.

Sub-component 4.3: Support Agribusiness Development

The main objective of this sub-component is to increase small scale farmer market access, market efficiency, and value adding products and services along selected VCs. It stimulates market-led agro-enterprise and cooperative linkages with domestic, regional and international markets. An indicative long list of possible VCs has been developed using similar criteria as that of AGP I as show below:

Cereals Teff, Wheat, Maize, Barley and Sorghum Pulses Chickpea, Faba bean Oil crops Sesame

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Stimulants Coffee Vegetables Tomato, Potato and Onion Fruits Banana and Mango) Livestock Dairy, Poultry, Live animals, Cattle Meat, Shoats Meat, Hides and Skins,

and Honey Activities to be supported under this sub-component are as follows (to be confirmed through the USAID-parallel financing design process):

i) Support to the coordination of value chain (VC) actors: Under this activity, the Program will assist in establishing and strengthening Multiple Stakeholders Platforms (MSPs) at federal and regional levels.

ii) Technical Support to Strengthen Competitive Agribusiness Actors: The following interventions to strengthen the agribusiness actors could be considered: a) Facilitate linkages among agribusiness associations, farmers, cooperatives and small business groups b) Support Quality, Traceability and Certification of Crops and Livestock ; c) Support through Innovation Competitive Grant and Demonstration Fund.; d) Domestic and foreign trade fairs.

Sub-component 4.4 - Support Market Infrastructure Development and Management

The objective of the sub-component is to improve market access through development of market infrastructure. The major interventions supported under this subcomponent are: a) Construction and modernized management of market centers through the construction of Primary crop, fruit and vegetable products market centers, Primary animal market centers, Milk and honey collection and processing centers, Road side market shades b) Construction and management of warehouses as well as storage, grading and packaging facilities; c) Construction of small bridges; d) Support the development of market information systems. It is expected that most of the activities under this subcomponent will be implemented by MoT, MoA, MoI and FCA, in collaboration with the subordinate institutions at regional and woreda level through a parallel financing mechanism funded by USAID.

Component 5: Program Management, Monitoring, Evaluation and Learning.

The objective of this component is to ensure program implementation, effective M&E of results as well as a consistent and effective approach to capacity development.

Sub-component 5.1: Program management and institutional arrangements

The purpose of this sub-component is to ensure well-functioning institutional arrangements and mechanisms to ensure the effective coordination and management of the Program. This sub-component will support the institutional arrangement such as AGP Steering Committee, AGP Technical Committee, and the AGP-CUs at various program implementation levels.

Sub-component 5.2: Monitoring and Evaluation (M&E)

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The AGP2 M&E system will assess and document provision of input, achievement of outputs and processes of implementation as agreed in the annual work plans and progress towards program outcomes and intermediate results. The system will also analyze and interpret such data to evaluate impacts and outcomes, track progress, and monitor how well agreed-upon processes are being carried out.

Sub-component 5.3: Capacity Development for Cross-cutting issues

Human resource development will be provided support to cross cutting issues. It is well recognized that agricultural development programs have to consider nutrition, climate smart agriculture and gender in technology development, technology promotion and scaling up of best practices as well as in market and value chain development. It is also imperative that climate, gender and nutrition sensitive programs have to be combined with capacity development trainings that promote empowerment and behavioral changes.

Sub-component 5.4: Capacity Development Support Facility,

AGP II will adopt a more systematic approach to capacity development that reflects lessons learned from AGP-I and international best practice. An integrated approach addressing capacity issues at individual, organizational and enabling environment levels will be adopted and implemented by all AGP implementing agencies. To support the application of this new approach across AGP-II, a designated capacity development support facility (CDSF) will be established. The CDSF will have two main objectives:

i) Improve the quality of capacity development interventions within AGP2; andii) Strengthen the institutional capacity of IAs to manage AGP2

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PART I: BACKGROUND AND STRATEGIC CONTEXT

1.1. COUNTRY CONTEXT

1.1.1. General Perspective

Ethiopia is a large and diverse country. It is land-locked and located in the Horn of Africa, with an area of 1.1 million km2. Its bio-physical environment includes a variety of ecosystems, with significant differences in climate, soil properties, vegetation types, agricultural potential, biodiversity and water resources. Ethiopia is a country of many nations, nationalities and peoples, with an estimated total population of 87.95 million1. Only 17 percent of the population lives in urban centers, the great majority of them in Addis Ababa. At a current annual growth rate of 2.6 percent, Ethiopia’s population is estimated to reach 130 million by 2025, and is Projected by the United Nations to be among the world’s ten largest countries by 2050. Ethiopia is vulnerable to trade shocks from international food and fuel prices, and to large domestic weather-related shocks as demonstrated by the 2011/12 East Africa droughts.

Ethiopia has a federal, democratic government system, established in the early 1990s, with nine autonomous states (‘regions’) and two chartered cities. Decentralization of governance to the regional and district (woreda) levels has been actively pursued since 2003.

Ethiopia has experienced strong economic growth over the past decade. Economic growth averaged 10.7 percent per year in 2003/04 to 2011/12, compared to the regional average of 5.0 percent. Growth reflected a mix of factors, including agricultural modernization, the development of new export sectors, strong global commodity demand, and government-led development investments. Private consumption and public investment have driven demand side growth, with the latter assuming an increasingly important role in recent years. On the supply side, growth was driven by an expansion of the services and agricultural sectors, while the role of the industrial sector was relatively modest. Recently, annual growth ratehas declined slightly, but remain at high single-digit levels. Growth in the export of goods has also moderated in recent years and a decline was observed in 2012/13 for the first time since 2008/09. There have been bouts of high inflation in recent years and, while inflation is currently much lower. Keeping it low remains a major challenge for theMonetary Policy.

Ethiopia is one of the world's poorest countries, but has made substantial progress on social and human development over the past decade. The country’s per capita income of US$5702is substantially lower than the regional average of US$1,257 and among the ten lowest worldwide. In 2014, Ethiopia is ranked 173 out of 187 countries in the Human Development Index (HDI) of

1 Central Statistical Agency (CSA), 20142 International Monetary Fund, 2014

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the United Nations Development Program (UNDP)3. High economic growth, however, has helped reduce poverty in both urban and rural areas. Since 2005, 2.5 million people have been lifted out of poverty, and the share of the population below the poverty line has fallen from 38.7 percent in 2004/05 to 29.6 percent in 2010/114 (using a poverty line of close to US$1.25/day). However, because of high population growth, the absolute number of poor (about 25 million) has remained unchanged over the past fifteen years. Ethiopia is among the countries that have made the fastest progress on the Millennium Development Goals (MDGs) and HDI ranking over the past decade. It is on track to achieve the MDGs for gender parity in education, child mortality, HIV/AIDS, and malaria. Good progress has been made in universal primary education, although the MDG target may not be met. Reduction of maternal mortality remains a key challenge.

GoE is currently implementing Growth and Transformation Plan (GTP; 2010/11-2014/15), which sets a long-term goal of becoming a middle-income country by 2025, meeting growth rates of at least 11.2 percent per annum during the plan period. To achieve the GTP goals and objectives, GoE has followed a “developmental state” model with a strong role for the government in many aspects of the economy. It has prioritized key sectors such as industry and agriculture as drivers of sustained economic growth and job creation. The GTP also reaffirms GoE’s commitment to human development. Development partners have been supporting programs that are broadly aligned with GTP priorities.

1.1.2. Sectoral and Institutional Context

The agricultural sector remains a dominant sector in the Ethiopian economy and an important source of economic growth. Although there is an on-going structural transformation in the Ethiopian economy, predominantly from agriculture to services, agriculture still comprises 45 percent of total output and continues to dominate employment (78 percent). The sector is also a major contributor to export earnings, with over 80 percent of goods exports (including coffee). Despite its declining share in the economy, the agriculture sector is growing rapidly. Over the past 15 years the average rate of growth has been close to 7 percent per year according to official statistics, and although there is some debate about the reliability of these figures with studies that show a slower growth rate, there is consensus that the sector has grown at a fast pace. Sources of growth have come from an increased area under cultivation and from increased productivity, the latter driven by large public investment in the sector, including agricultural extension, rural roads, and advances in public policy such as improvements in land tenure security. In addition to contributing to economic output and exports, agricultural growth is correlated with poverty reduction, from smallholder farmers and through positive impacts on non-farm rural economies.

In relation to increased agriculture investment, there have been concerted efforts to collaborate and partner on investments and the Agricultural Growth Program (AGP I) was a clear output of this. The first phase of the program was financed to around US$350 million, including US$150 million from IDA, US$50 m from the Global Agriculture and Food Security Program (GAFSP), a US$50 million Multi-donor Trust Fund with contributions from the Netherlands, Canada and Spain, and parallel financing from USAID and Italy. This program has been under implementation since March 2011 and will end in September 2015. 3 United Nation Development Programme’s Human Development Report, 20144 “Poverty and Growth in Ethiopia (1995/96-2010/11), Ministry of Finance and Economic Development, 2013

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The AGP is a multifaceted investment program supporting agricultural productivity and commercialization focusing on high agricultural potential areas. It is a program approach and is viewed by Government as the key investment mechanism for development partners and government to collaborate. The program closely aligns with the objectives set for agriculture sector in the GTP1. Currently, AGP operates at kebele levels (the lowest administrative unit) in 96 woredas of the four regions of Amhara, Oromiya, SNNPR and Tigray and have provided support for improved public agricultural service provision, technology transfer, improved market access and marketing, infrastructure (household and small-scale irrigation, feeder roads and market centers) and capacity building. The program further explicitly aims to increase the participation of women and youth in the sector.

The Mid-Term Review was recently conducted for the first phase of AGP. Although disbursement is behind schedule, it is accelerating as progress is made on the numerous small-scale infrastructure programs, in particular for small-scale irrigation, feeder roads and market centers. Government remains confident that the program will be completed on schedule. All components are implementing as designed and no level 1 restructuring is required. The main binding constraint remains capacity, especially at local level. Through concerted efforts and technical assistance, some of the major technical constraints in small-scale irrigation are being addressed. However, capacity weakness in all components requires a more holistic approach to capacity building, beyond rudimentary approaches focusing on short-term training.

The further growth of the agriculture sector is expected to feature prominently in the second phase of the GTP (GTP -II), currently under preparation. Maintaining the current growth rate in the sector will require increased agricultural productivity as opportunities for increased land expansion for smallholderproduction are limited.Further agricultural growth will require greater attention to smallholder farmers, who in 2012/13 contributed 96% of the total agricultural production according to official statistics. To increase agricultural productivity of smallholders, effective expansion of the agriculture extension is important.

Despite the large investment into public agricultural services, especially into extension, which has seen a rapid rise in the number of extension workers and beneficiaries served, there are capacity weaknesses which continue to inhibit the identification and dissemination of technologies to support increased productivity. Strengthening research and extension linkages, further expansion and capacity of the extension service and enhancing farmer access to inputs are required to support investments in extension workers. Animal health and production services also suffer from capacity limitations and low outreach, leading to low productivity and quality across a range of animal products.

To enhance agricultural productivity, availability of improved technologies and information is critical. Currently, agricultural research is undertaken by the national agricultural research system mainly comprising of the Ethiopian Institute of Agricultural Research (EIAR) and Regional Agricultural Research Institutes (RARIs). Limited availability of agricultural technologies, inadequate capacity in multiplying source technologies and limited on-farm pre-

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extension demonstration of technologies are key problems hindering the availability of technologies to small scale farmers. It is thus imperative to accelerate the release of technologies (crop, livestock, NRM, agricultural mechanization etc.), adopt technologies from elsewhere (within or outside the country), demonstrate available technologies released by the research system, and develop demand-driven agricultural technologies tailored to specific agro-ecologies and socio-economic conditions of the farming community.

Access to and application of agricultural inputs is a decisive factor to improve agricultural productivity and production. In addition to improved seeds, animal breeds and fertilizers, there is considerable opportunity to promote the use of machinery for production and post-harvest activities. Innovations such as row planters for teff have had a considerable impact on productivity. However, input markets in Ethiopia are currently being done by cooperative unions and the agro-dealer market is small and underdeveloped. While cooperatives can play an important role in linking smallholder farmers to input and output markets, they are often hampered by weak management and facilities, and currently only handle a small percentage of agricultural output. There is potential for strengthening cooperatives while also enabling greater private engagement in both input and output markets.

Output marketing system and infrastructure in Ethiopia are dominated by traditional, informal exchanges. For a large part of the country, this means trading with limited infrastructure. There are few market structures, storage, loading and unloading facilities, quality checking and banking services in or around most of the market centers. This has resulted in the cost of trading being very high due to cumbersome conditions for transaction, low product qualities and post-harvest losses. Value chains (other than for coffee which has a relatively efficient market structures) are therefore characterized by an absence of market participants, market inefficiencies and limited value addition. With increasing agricultural surpluses, rapid urbanization and increased opportunities for agro-industrial investment, there are gaps in the current functioning in a number of selected value chains.

Agricultural water development is crucial to improve smallholders’ livelihoods, since irrigation can help farmers increase their crop diversity with high value crops and enable multiple cropping seasons. The current irrigated land area is about 2 million hectares (about 16% of currently cultivated land area).Beyond the next five years, government plans to reach the full irrigable potential of the country of over 5 million ha. Small Scale Irrigation (SSI) and Rain Water Harvesting (RWH) as well as medium- and large-scale schemes will be an important strategy to achieve this goal, in combination with exploring and developing groundwater potential.

Future growth will need to be sensitive to gender needs. On average, female farm managers in Ethiopia produce 23% percent less (in terms of gross value of output) per hectare than their male counterparts. Differences in both the levels of productive factors used and the returns that these factors generate drive the country's gender gap. Future inclusive agricultural growth should consider: (i) the promotion of labor-saving technologies for women; (ii) the provision of relevant information to female farmers, meaning customized to the needs of female farmers; and (iii) the easing of the time burden of household responsibilities, by providing services to reduce the time that female farmers need to perform household duties to enable them to devote more time to productive farm activities. Recent research demonstrates the potential of women to contribute to

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agricultural growth and improve outcomes, including improved nutrition.

In Ethiopia, forty percent of children under the age of five suffer from stunting as a consequence of chronic and cyclical malnutrition. The National Nutrition Program (NNP) was revised in 2013 to strategically address the nutrition problem in the country to include initiatives that have emerged since the 2008 NNP, including taking into account the multi-sectoral and multidimensional nature of nutrition and the linkages among key implementing sectors, one being agriculture. This program, endorsed by MoA, the Ministry of Health and another eight line ministries, includes a strategic objective to strengthen implementation of nutrition sensitive interventions in the agriculture sector. The initiatives focus on improving the consumption of diversified diets at the household level through: (i) diversification of crop, fruit and livestock production; (ii) promotion of appropriate technologies for food production and processing through the handling, preparation and preservation of food supporting nutritious food utilization; (iii) building the capacity of Development Agents (DA) at community level and agriculture program managers at all levels to implement nutrition sensitive agriculture; (iv) supporting local complementary food production and creating economic opportunities for women through development groups and cooperatives; and (v) supporting agricultural research centers to develop seeds of high nutritional value. Thus, it calls for aligning the agricultural growth programs to improve nutritional status

With the limits of bringing uncultivated land under production being met, the likelihood of climatic variability and the potential degradation arising from more intensive production practices increases, and thus there is an urgent need for agriculture to conserve resources and reduce degradation. In recent years, considerable amount of work in natural resource conservation and development work has been undertaken. In 2013/ 14 alone, the communities undertook natural resources conservations work on 20.15 million hectares of land throughout the country, according to official statistics. This current momentum of community mobilization in natural resource conservation by pursuing activities such as slope stabilization, watershed approaches to water management and reduction of tillage should be sustained to make the sector more resilient and sustainable.

1.1.3. Higher Level Objectives to which the Program Contributes

The program promotes competitiveness and employment in the agriculture sector as well as addresses the cross cutting issues of gender, nutrition and climate change. This is consistent with growth in investments in the agriculture sector expected to feature prominently in the second phase of the GTP, currently under preparation. Second Agricultural Growth Program AGP II would be aligned with GTP II and would contribute to the achievement of targets set for agriculture sector growth. The sector is critical in the GoE’s development strategy GTP, and in particular to maintaining at least an 11 percent average real growth in the gross domestic product. At the same time as the country is pursuing a strategy to expand light industry and manufacturing, the raw materials for this will come from the agricultural sector, including in textiles, leather, and food stuffs

The important role of the agricultural sector in achieving nutritional goals is recognized in the NNP. To increase impact, agricultural growth needs to be nutrition sensitive, as growth by itself

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may not lead to improved outcomes. In addition to supporting the diversification into more nutrient-rich foods, for example through supporting household and small scale irrigation which enables production of horticulture crops, purposeful actions need to be taken to develop, promote and create awareness of nutritional sensitive agricultural technologies in production, post-harvest preservation and food preparation. The Program would support this through public agricultural services including research, extension and animal health and production.

1.1.4. Lessons Learned and Reflected in the Program Design

From its inception, AGP has built on evidence of independent impact evaluations, studies and assessments to inform and improve implementation. These evaluations, along with specific studies on various aspects of the program, have provided valuable insights into how to improve implementation and maximize the overall impact of the program. Some of the main lessons obtained from AGP I that would be valuablefor AGP IIare outlined below.

There is a good scope for improvement in terms of commitment and coordination among the Implementation Agencies (IAs) by improving the implementation arrangements. Though there is a good structure of Steering Committees (SCs) and Technical Committees (TCs) at all levels to effectively monitor, implement and evaluate the program, there has been inadequate coordination and commitment observed among IAs. In order to improve the commitment and coordination, the frequency of supervision has to be increased andmeetings have to be executed in timely manner at all levels. In addition, the AGP activities have to be integrated in the institutions work plan, which would enormously help to improve ownership among the IAs. Zones have to be proactively involved in the implementation of the programs as well as robust joint planning mechanism has to be established between aligned programs and parallel programs.

A systematic and holistic approach to capacity building can lead to addressing the capacity gaps in a more efficient and effective manner. Low focus on planning of trainings, skill gaps observed for effective dissemination of knowledge, lack of documentation of training materials, and poor follow up of training materials are some of the issues which have to be addressed in AGP II. To address these challenges, a holistic and systematic approach to Capacity Building has to be taken in AGP II which focuses on identifying gaps, building capacities, following up and assessing the usefulness of capacity building and institutionalizing it.

Community Led Planning Process (CLPP) approach followed during the AGP-I needs refinement. Though the CLPP approach has resulted in increased participation, sense of ownership and the effective allocation of resourcesamong the participants, experience of this approach has been mixed partly because of the lack of expertise (knowledge, skills and information) of conducting the planning. Greater attention is required on how community preferences are combined with other planning mechanisms, such as consistency with woreda development plans and agricultural priorities determined by ADPLACs.Therefore, the AGP – 2 will focus on building the planning expertise, especially at the woreda level as well as refining the CLPP approach to better integrate the planning process with the woreda plans.

A key mechanism for increasing access to services and markets is through the support to farmer groups (formal and informal). Supporting group based initiatives is complex and requires long term commitments by group members and support services to maximize the likelihood to group

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sustainability. Groups are most successful when they have well matched socio-economic status of members, sound business plans including linkages to markets, strong management and receive consistent and continual technical assistance.To address these issuesAGP-II will focus on all the lessons learned in this regard and support the farmer groups through developing better business plan, create better market linkage and provide capacity building for better management of the business.

Cross cutting issues of women and youth development, nutrition, climate smart agriculture and capacity development will be mainstreamed with all capacity building activities including staffing will be conducted to insure their implementation. The mainstreaming will be accompanied with specific activities such as women and youth CIGs, deliberate selection of nutrition, gender and climate sensitive technologies and capacity development and awareness creation intervention.

1.2. PROGRAM OBJECTIVES AND SCOPE

1.2.1 Program Objectives

The principal aim of the program is to support the government's strategy for agricultural growth, as articulated in its GTP and agricultural PIF. This requires both increases in productivity and creating access to market. The program also emphasizes that growth should be inclusive and therefore would stress the participation of women and youth. Sustainable growth requires that due attention is given to natural resource management (land and water) to end the challenges of alarmingly diminishing natural resources in such areas in response to the national and global issue of climatic change, and that institutional development emphasizes sustainable structures and incentives.

Therefore, the Program Development Objective (PDO) is to increase agricultural productivity and commercialization of small holder farmers targeted by the Program and also contributes to dietary diversity and consumption at HH level.

Agricultural productivity is defined as yields for selected key crops and animal products. Commercialization is defined in terms of proportion of marketed production of selected key crops and animal products by small holder farmers.

The program would also contribute to the higher level objectives of poverty reduction, change mitigation and adaptation through supported CSA initiatives.

PDO Level Results Indicators

The following indicators will be used to measure progress towards achieving the PDO, with detailed descriptions in Annex II:

1) Percentage increase in yield for selected crops in targeted households (benefiting directly from the Program; disaggregated by Male Headed Households (MHH) and Female Headed Households (FHH));

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2) Percentage increase in yield for selected animal products in targeted households (benefiting directly from the Program; disaggregated by MHH and FHH);

3) Proportion of production sold by targeted households for selected crops (targeted households are benefiting directly from the Program; disaggregated by MHH and FHH));

4) Proportion of animal production sold by targeted beneficiaries for selected products (targeted beneficiaries are benefiting directly from the Program; disaggregated by male and female (FHH and married female).

5) Household dietary diversity: - increase in average number of food groups consumed at HH level5.

1.2.2 Program Target Areas

The focus is on those areas in Ethiopia which have the highest growth potential, based primarily on agro-ecological conditions and access to markets. It maintains to continue to operate in the all 96 woredas targeted in AGP I to consolidate achievements as well as leverage strengthened capacities attained during the second phase. In addition, AGP-II expands to other 61 new woredas of similar agro-ecological conditions to scale up the program. Accordingly, three more regions and one city administration – Benishangul Gumuz, Gambella, Harari and Dire Dawa respectively have been added to AGP II, and additional woredas have been included in the existing four AGP Regions. Thus, AGP II will operate in seven regional states and one city administration that counts to 157 woredas (Table 1). Selection of the new target areas in AGP- II applied the same principle used in AGP I which are :

Access to markets (access to cities of 50,000 population or over in less than 5 hours); Natural resource endowment (factors to consider are good rainfall distribution with

annual average of 700 mm or over); Suitable rainfall and soil for crop and fodder production; Potential for development of small-scale irrigation facilities; Institutional plurality of service providers, including good basis and growth of viable

cooperatives and farmer groups; and existing partnership engagements with private sector, and

Willingness and commitment to participate (supportive environment; performance of programs/programs supported by other donors).

In addition to the above selection criteria, the new program has been responsive to region’s request to consider PSNP woredas if they were able to demonstrate that they have high potential for growth. AGP II also considered woreda clustering as a criterion for selection to develop synergies for growth as well as woredas capacity to manage the multiple funding was kept in mind too.

The distribution of number of AGP II woredas among Regional’s States is in accordance to the share of population of respective regions considering the 2007 census, the agro-ecological factors being remain similar. Following this methodology, 62 woredas are allocated to Oromiya, 41 woredas are to Amhara, 35 woredas to SNNPR, 13 woredas to Tigray, 2 woredas to Benishangul Gumuz, 2 woredas to Gambella and 1 woreda each for Harari and Dire Dawa . The 5 This Indicator will be monitored by the additional fund by the EU for Complimentary Action to promote Nutrition in to AGP II conducted by consultant

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detailed list of target woredas of AGP II by region is indicated in the table below (see list of woredas in the Annex I).

Table 1: Distribution of Target Woredas across Regional States

Sr no Name of region Number of woredas

Existing New woredas Total no. of Woredas1 Oromiya 39 23 622 Amhara 26 15 413 SNNPR 22 13 354 Tigray 9 4 135 Benishangul-Gumuz 0 2 26 Gambella 0 2 27 Harari 0 1 1

Dire Dawa Admin. Council 0 1 18

Total 96 61 157

1.2.3 Target Beneficiaries

The primary target of the program is small holder farmers, who live in areas of Ethiopia with the highest potential for agricultural growth. Small holder farmers are defined by the Central Statistics Agency as farmers living in a village, registered as a resident in kebele administration, conducting agricultural production activities (crop production, livestock husbandry and agro-forestry) and owning land of variable size; the average holding sizes of land per household is around 1 ha.

The target number of direct beneficiaries will be farmers benefiting from trainings and demonstrations leading to adoption of new technologies, farmers in Common Interest Groups (CIGs), farmers benefiting from small scale irrigation and HHI including those in Irrigation Water User Associations (IWUAs), farmers in Farmer Research Extension Groups, farmers being linked to the market by the Program, farmers using animal health services and farmer members of cooperatives supported by the Program and are estimated to be 1.6 million. In addition, the Program will reach a significant number of indirect beneficiaries, including household members and farmers benefitting from improved public agricultural services overall and access to some markets. The Program will also specifically target women farmers with tailor made innovations, activities and technical assistance. The target proportion of female direct beneficiaries (both female head of household and married female) will be 40 percent.

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Table 2: Estimated Total number of HH in AGP II disaggregated by Sex

RegionTotal no of AGP woredas

Total no of Kebeles

Total no of Household Total Target Population

Male Female Total Male Female Total

Oromiya 62 1,640 1,130,965 158,311 1,289,27

64,261,63

2 4243,026 8,504,658

Amhara 41 1,066 904,685 247,624

1,152,309

3,238,427 3202,047 6,440,474

SNNPR 35 1,024 366,474 378,932 745,406 1,606,37

0 1636,634 3,243,004

Tigray 13 205 372,675 101,035 473,710 737,225 85,438 1,593,663

Benishangul Gumuz 2 53 18,956 2,539 21,495 62,533 63,247 125,780

Gambella 2 35 5,157 2,906 8,063 25,207 14,793 40,000Harari 1 17 20,357 6,782 27,139 53,799 52,091 105,890Dire Dawa City Administration 1 12 8,371 1,355 9,726 23,655 23,805 47,460

Total 157 4052 1696675

899484

1285539 902419 932108

1 3191309

1.2.4 Program Design Approach

To achieve its development objective, AGP- II is designed in a comprehensive approach, in such a way that the planning and implementation would be in a decentralized manner with a focus on ensuring women benefit equally as men from the components, following a demand-driven and incentive-(performance) based approach along the value chains. The program would focus on a targeted group of commodities with strong domestic/export market potential and demand-led service and infrastructure interventions that respond both, to community priorities and market signals. The program design builds on the lessons from AGP I. There are several key principles embedded in the design.

Comprehensiveand responding to strategic goals:AGP is a broad-based program that attempts to improve a large range of activities (input, production, processing, and marketing) along selected agricultural value chains in order to improve productivity of resources, value addition, marketing and infrastructure for male and female farmers in selected target areas. Thus, it will help participating small scale farmers to access improved technology, infrastructure, finance and input-output markets. The basic strategy of the program is also to improve the business environment for agriculture by gradually shifting from subsistence to market oriented commercial agriculture. In general the program would be the government’s largest investment operation supporting the agricultural growth agenda, and would therefore respond to strategic goals at national, regional and woreda level.

Demand driven and decentralized (participatory): Bottom-up planning process would give greater power to kebele and woreda-level to initiate and determine integrated plans

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for AGP. Individual activities would be largely chosen by farmers and their communities and organizations as well as other private sector beneficiaries at a grassroots level. Thus, local female and male farmers and youth are the owner of the program, and will actively participate in problem identification, planning, implementing and monitoring the activities. The program encourages women, women headed household and youth to participate in the program as they easily fall within the target group of small scale farmers.

Focused on selected areas:Given the limited resources, AGP II will operate in selected areas, yet expanded from 96 Woredas in Phase I to 157 woredas in the country (about 64% increases). The target areas are characterized as relatively high potential ago-ecological clusters (see also 1.2 above).

Value chain: Value chain approach6 will be used for the implementation of the program. A typical supply chain will include producers, assemblers/traders, processors, distributors, retailers, exporters, financers and finally consumers. This includes the selection of specific value chains (which are considered strategically important for the country to increase export earnings / import substitution). A focus on specific value chains is made to ensure significant value addition along the supply chain. The Program will strive to boost the incomes of target beneficiaries engaged in all activities and services that are undertaken along all lines from the primary production to the final consumption of a commodity. The program will also take note of the roles of women, men and youth along the lines of value chain to ensure that all rounded support is provided. The technologies, the improved systems and other opportunities and the selection of the commodities will consider the potential benefit to women and youth.The AGP, through several of its intervention activities, will also strengthen rural-urban linkages.

Incorporating strategic cross cutting goals: the program would both mainstream and include targeted interventions to address the following cross cutting issues: i) Nutrition: the program would explicitly support the National Nutrition Program to improve the diversity and nutritional content of smallholder production and processing; ii) increased participation of women and youth, to support the narrowing of the gender productivity gap; and iii) Climate Smart Agriculture, including support to the implementation of the Government’s Climate Resilient Green Economy strategy;

Sustainability: including close attention to creating capacity for investments under the program to be maintained. In this regard, the program would adopt a systematic and consistent approach to capacity building through the following stages: a) consensus building with key stakeholders on the capacity gaps to be addressed and how they should be addressed; b) capacity strengthening activities to address the gaps identified during the consensus building stage; c) application and follow up where support is provided to enable new capacities to be applied in the work place; and d) institutionalization where new capacities are internalized, mainstreamed or scaled up.

6. Value Chains are chains that incorporate successive steps through which additional value is added as products move from one stage to another.

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Complementarities and Linkages: Within the program, coordination between components and activities is essential for the program objectives to be realized, including among the research, extension and market development activities. In addition, there are other programs and initiatives within the agriculture sector which are highly complementary to the proposed program.

In addition, AGP will complement the existing government programs, to promote agricultural growth in the selected areas. The strategic thrust of the program is to support access to productivity-enhancing technologies and agricultural commercialization through scaling up of best practices in agricultural growth, improve market access, rural infrastructure and building capacity in areas of need.

1.3 ORGANIZATION OF THE PROGRAM DOCUMENT

Part II discusses details of the program description. The program is designed to include five components: (i) agricultural public support services; (ii) agricultural research; (iii) small-scale irrigation development; (iv) agricultural marketing and value chain development and (v) program management, capacity building, monitoring and evaluation. Description for each component starts with an overview that explains the rationale and objectives for the intervention, how the components are systematic interlinked with one another and mainstreamed cross cutting issues (particularly, gender, nutrition and climate smart) whereas some strategic interventions are addressed in component v.

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Figure 1: Program logical Model

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Increasing Agricultural Productivity and Commercialization of Smallholder Farmers

Small Scale Irrigation (CP III)

Program Management, Monitoring & Evaluation and

Learning (CP V)

Support Agricultural Research System for

Enhanced technology supply

Public Agricultural Service (CP I)

Agricultural Marketing and Value chain (CP IV)

PART II: PROGRAM DESCRIPTION

1. COMPONENT 1: PUBLIC AGRICULTURAL SUPPORT SERVICES

Overview

Ethiopia is endowed with significant environmental and natural resources to increase agricultural production and productivity. However, agriculture in Ethiopia is characterized by low production and productivity and unable to provided adequate food for the population as well as raw materials for export and the growing industry. Numerous environmental, physical and institutional factors are contributing to low productivity among which weak extension service delivery, crop and livestock diseases, soil and environmental degradation, inadequate coordination and lack of institutions that provide adequate and quality services to the smallholder farmers are some of them.

The objective of this component is, therefore, to increase access to better quality public agricultural services. It will be achieved through support to establishment and strengthening of Agricultural Development Partners Linkage Councils (ADPLACs), extension services delivery and support to crop and animal production, natural resource management as well as scaling up of best practices. It complements the ongoing activities under AGP-I through strengthening and enhancing capacity at the institutional level and building relevant skills and knowledge of key stakeholders, including establishment and strengthening laboratories for soil, plant and animal health; scaling up of best agricultural practices and management of natural resources.

Under this component support will be provided to cross cutting issues which include Climate Smart Agriculture (CSA), nutrition and gender. Climate change adaptation and mitigation activities in crop and livestock management will be addressed with an aim to promote agriculture that sustainably increases productivity, enhances resilience of livelihoods and ecosystem and reduces and/or removes Green House Gases (GHGs). To this end both technology demonstration and scaling up of best practices will provide appropriate emphasis to proven CSA technologies and practices.

In accordance with National Nutrition Program (NNP) there needs to be reorientation of nutrition programming to address chronic as well as acute malnutrition. Priority objectives to mainstream nutrition in agriculture programs include strengthen the capacity of women and men to provide for the food security, health and nutrition of their families, increase access to year round availability of high-nutrient content food and improve nutrition knowledge among rural households to enhance dietary diversity. There need to be clear guidelines for Extension services to make clear the roles for agriculture and health to deliver Behavioral Change Communication (BCC) activities on nutrition. Extension service will provide agricultural productivity support to men, women and youth CIG organized and promoted in component 4.

The program will make the best use of gender sensitive advisory services, in coaching of trainings, technology demonstration and scaling up of best practices. Training organized and conducted by the program shall make sure that women and men are given equal chance of

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participation. Gender-specific interventions in both technology dissemination and scaling up of best practices will be supported in a way that men, women and youth benefit from each specific intervention. Labor and time saving and women only activities will also be promoted.

This component is allied to component 2 in accessing technologies generated from research for demonstration on FTCs and on-farmer’s field. Feedback on new technologies is also provided to research for further modification and improvements. Technologies from pre extension demonstration will be potential candidates for scaling up of research proven technologies. Extension service provision including demonstrations for small-scale irrigation is linked to component 3. Establishment of WUAs, planning of crop and livestock demonstrations as well as organizing and implementing CIGs around irrigation for high value crop and animal production will be a joint activity among component 1, 2 and 4. Component 1 and 4 will work jointly to implement value chain commodities. Crop and animal production challenges identified during CLPP process will also be addressed to research.

The component is broadly classified into two sub components; namely, institutional strengthening and development; and scaling up of best practices. The expected outcomes of the component will be increased crop and animal productivities, market surplus and increased participation of smallholder farmers including women and youth.

Sub component 1.1 : Institutional Strengthening and Development

For effective agricultural transformation, there is a need to have efficient extension service delivery as well as well-built institutions that provide agricultural support services. Such services are imperative for promotion of yield increasing technologies as well as providing services for ensuring plant and animal health’s. Poor crop and animal management practices and inadequate extension support services as well as soil fertility decline and natural resource degradation are among the major factors contributing to agricultural productivity decline. Besides, linkage among actors is vital for effective and efficient technology promotion and to provide adequate support services to the smallholder.

The objective of this sub-component is to improve public agricultural delivery services to make more effective, efficient and demand-driven. Activities under this sub-component are thematically discussed in the following sections.

1.1.1 Establishing and Strengthening Agriculture Development Partners Linkage Advisory Councils (ADPLACs)

The lack of a close working relationship between national agricultural research and extension organizations, and with different categories of actors, is one of the most difficult institutional problems confronting agricultural transformation in Ethiopia. To solve the linkage problem ADPLAC was established to ensure the collaboration among all agricultural development actors. The purposes of the ADPLAC are to identify problems and set research and development agenda, assign tasks to pertinent partners to solve research and extension problems and

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administrative matters constraining agricultural development and to involve partners in scaling up of best practices as well as to link agricultural products with market, agro processing industries and consumers. It is also a forum for exchange of information and feedback gathering on the performance of released and adopted technologies so as to improve further technology generation process and market linkage.

In AGP I, ADPLACs have been strengthened and established at various administrative levels of the country. The linkages have been playing significant role in enhancing rural development and in transforming smallholder agriculture. This program is therefore to build on lessons and experiences of AGP I. Accordingly;

(i) New ADPLACs will be established in the new regions, zones and woredas where councils have not been established under AGP I.

(ii) The newly established and the existing ADPLACs will be strengthened as:a. The AGP II will support reviewing and updating of existing ADPLAC guideline

to reveal the exact and concise roles and responsibilities of actors with accountability and responsibility. Regular review meetings as well as joint field monitoring at federal, regional, zonal and woreda level will be conducted.

b. The ADPLACs forum will set agenda to address issues related to climate smart, gender and youth. Institutional synergies and networks for knowledge exchange are key to establishing, maintaining and scaling up CSA, gender and nutrition initiatives. It will also support joint monitoring and evaluation to measure the performance of shared responsibilities within ADPLACs. It will capacitate and help to address the needs of men, women and youth farmers and create a learning environment among ADPLACs members.

Vertical and horizontal linkages among ADPLAC stakeholders enable to create efficient, effective and synergistic linkages and partnerships to improve the services given to smallholder farmers and value chain actors. It helps to exchange information, share lessons, and identify opportunities for providing services to each other and innovating on how to provide advisory services in their domains of work. Horizontal integration of the ADPLAC will be ensured through regular meetings conducted at each level to discuss on set agenda and to promote dialogue, learning, decision making and collective action, to develop partnerships and strengthen relationships among the actors. Representatives of the relevant institutions will attend the meeting on regular basis. Vertical linkage is ensured through participation on regular meetings by representatives of heads of agricultural offices and bureaus. Information and communication is in two ways that is from federal to kebele level ADPLACs and the vice versa. The vertical and horizontal linkage of ADPLAC at all levels is schematically indicated in the following figure.

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Federal ADPLAC

Regional ADPLAC

Zonal ADPLAC

Woreda ADPLAC

Kebele ADPLAC

Members

Members

Members

Members

Members

Problems and challenges

Federal level organizations plus regional agricultural bureau heads

Regional level organizations plus zonal agricultural office heads

Zonal level organizations plus woreda agricultural office heads

Woreda level organizations plus kebele chairperson

Kebele level organizations

Implementation of decisions

Figure 2: Vertical and horizontal linkage of ADPLACs

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1.1.2 Support to Agricultural Extension Service

One of the most important opportunities of the agricultural extension system is the strong commitment of the Government to developing a strong and effective agricultural extension system mainly by strengthening public agricultural extension services as part of the general agriculture development. In order to transform smallholder agriculture some of the measures the government has taken include: training of large number of agricultural professions and establishing of Farmers Training Centres (FTCs) in each of the kebeles so as to provide effective and efficient agricultural extension service. However, extension service delivery is constrained by numerous factors such as lack of innovative technologies, lack of adequate agricultural skills and knowledge and weak capacity of the FTCs to provide farmers training as well as demonstrating improved technologies.

In Ethiopia agricultural extension provides services in the area of awareness creation, Agricultural Knowledge, Attitude and Practices (AKAPS) of the small holders. It also supports technical and skill gaps improvement through capacity improvement and making available agricultural technologies and inputs required for demonstration of improved practices.

Extension service delivery requires adequate monitoring at time of demonstration, training and experience sharing visits to ensure that women and men are given equal chance. It needs to encourage women to involve in committee through extension purposively designed for improvements in tasks usually carried out by women.

In regards to CSA the program will support inclusion of climate advisory service in to the existing extension system through access to meteorology information and mini station development at FTCs and on model farmers’ fields. In addition crop, animal and natural resource technology packages will be revised to include climate smart agricultural technologies and practices. Extension will advice promotion of controlled grazing and the establishment of plots of permanent forages for direct grazing that reduce disagreement between soil organic matter accumulation and grazing needs and significantly contribute to CSA.

Nutrition promotion will focus on demonstrating and advising men and women farmers to undertake homestead year round production of fruits, vegetables, nutritious root crops, cereals, oil crops, bio fortified crops (like QPM and sweet potato) and pulses to improve consumption of diversified diet at household level. It also includes demonstrations on improved milk production, poultry production, small ruminant rearing and fish production. Promotion will also include capacity building on proper utilization of animal source foods (dairy, poultry, sheep and goats) including increased consumption of fish.

Development of locally adapted Behavioral Change Communication (BCC) materials topics to include food processing, cooking demonstrations, preparation, hygiene and sanitation during food preparation, nutrition value of foods will be adapted to local culture, language, crops produced in each Region. Coordination of work between MoA and MoH by building links between DAs, and Health Extension Workers (HEW) is imperative.

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1.1.2.1 Rehabilitating and equipping Farmer Training Centers (FTCs)

AGP I has rehabilitated and equipped most of the FTCs in the program woredas with essential facilities and furniture. For the FTCs in the new AGP II woredas, the program will focus on equipping FTCs’ classroom, office and demonstration materials. In the existing AGP I woredas, the program will continue strengthening of the FTCs with farm mechanization (that addresses women and men) audio visual aids and digital green facilities with an aim to take FTCs to the next advancement level. As part of provision of climate information and advisory service, the program will support purchase and distribution of the plastic rain gauges to establish mini meteorology station in selected FTCs. FTCs will also be provided with cooking facilities for demonstrations to enhance knowledge and skill of men and women on nutrition. Rehabilitating and equipping FTC will be the responsibility of AGP CUs at all levels in collaboration with extension offices from federal to woreda level.

1.1.2.2 Demonstration of Improved Agricultural Technologies

The program will support demonstration of improved technologies both in FTC compound and on-farmers plot. It will support demonstration of research proven yield increasing crop and animal technologies, climate smart agricultural practices, improved farm machineries and gender sensitive labor saving devices, and promotion of nutrition dense crops and animal products as well as demonstration of food preparation, utilization and preservation methods. Demonstration at FTC will be linked to value chain commodities identified in component IV. In addition, in FTCs with improved irrigation agronomic practices and efficient irrigation water management will be demonstrated.

To speed up technology adoption by farmers, improved technologies demonstrated in FTC compound will be aliened to on-farm demonstrations. On-farm demonstration will be carried out simultaneously with FTC demonstration to enable women and men farmers to create awareness and knowledge about new technologies and best practices demonstrated. On-farm technology demonstrations will be supported with provision of inputs, training and experience sharing visits to reduce attitudinal change and encourage them to adopt improve practices and technologies.

Demonstrations at FTCs will also emphasis on innovations-based on location-specific needs, identified by male and female farmers. Technologies specifically designed to enhance and benefit tasks frequently performed by women in the agricultural value chain such as food processing and weeding will be assessed and demonstrated. Moreover, this activity would include assessment and demonstration of labor saving mechanized technologies to female farmers. More emphasis of women’s involvement in appropriate technology to aid utilization of foods produced, particularly high nutrient foods such as fruit and vegetable using solar driers and energy efficient stoves. Post-harvest handling, cooking demonstrations and nutrition knowledge needed & this could be delivered through FTC, WDA, CIGs and other groups by DAs following training.

The program will also support yield improving CSA technologies and practices that are known for soil carbon sequestration. Such activities include FTC and on-farm demonstrations of composting, crop rotation, crop residue management, intercropping, bio fertilizers, agro-forestry,

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and Integrated Pest Management (IPM) technologies. Soil carbon sequestration can also be enhanced through improving nitrogen-use efficiency (NUE) by applying precise amounts of nitrogenous fertilizer or manure to crops. Methane emissions from agriculture can be decreased by reducing emissions from ruminant livestock by adjusting the portions of animal feed to decrease digestion time using feed additives to reduce metabolic activity of rumen bacteria that produce CH4. Applying manure to the soil as a nutrient source rather than storing it as waste will also help to reduce GHG emission

1.1.2.3 Capacity Development of extension services

(i) Human Resource Capacity Development

The focus of this activity will be on bridging skill gaps for farmers, FTC MC, development agents (DAs) and subject matter specialists (SMS). The program supports first training need assessment to identify skill or knowledge gaps and type of training need required at all level for SMS, DAs. Need assessment should also include gaps in extension materials. Furthermore, the existing curriculum and training module of FTC lacks key cross cutting issues like nutrition, climate smart agriculture, gender concerns and agricultural mechanization.

The existing curriculum and training module of FTC requires revision so as to incorporate nutrition, climate smart agriculture, gender concerns and agricultural mechanization in the training. Specific nutrition training needs should be identified and joint trainings on nutrition organized and conducted for BoA and BoH staff at all levels. Training needs of women farmers will be assessed and detail planning conducted to address women training needs. It also includes identification of appropriate location and time that is suitable for women farmers. The program will also pilot provision of childcare services during training sessions as well as organizing women extension groups and encourage a more decentralized training mode during which trainings are provided by model female farmers to women's groups.

Extension training shall focus on constraints that affect sustainability issues like attitude and behavior, gender equality, skill and leadership commitments, as well as on building implementation capacity, which is a pivotal for over all transformation of agricultural development.

Training of farmers, DAs and SMSs will emphasize on practical skills in the areas of participatory extension management, improved crop and animal production technologies, postharvest handling, market-oriented agricultural commodities (identified in component IV), promotion of farm mechanization and natural resource management. Besides, experience sharing will be supported to capacitate farmers, FTC MC, DAs, SMS, with special emphasis to women and youth. Training at FTCs will be supported with audio visual aids. Strengthen capacity of SMS and DAs to advise farmers on the post harvest technology, production of nutrient dense crops, food preparation, nutritional value of foods and nutrition practices.

This activity will be coordinated by Federal Agricultural Extension Directorate and implemented jointly with Crop, Animal Production and Feed Resources Development, Horticulture, Agricultural Mechanization, Soil Fertility and Natural Resources Management Directorates at

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federal level in collaboration with regional, zonal and woreda, respective responsible institutions. Gender and nutrition experts in the agricultural office at all levels will also provide support in their area of expertise.

(ii) Physical Capacity Development

The program will provide support to furnishing and equipping offices at different levels as well as mobility support (vehicles and motor bycles) for the new woredas while Kebel will be provided with motor and pedal cycles. Support will also be provided to establish IT centers that enable access to knowledge base to give effective technical backstopping for DAs and farmers to provide extension services in support of priority enterprises selected by farmers. One of the key roles is to assist extension staff in linking with research, higher education institutions and market information.

The program will invest in the hardware needed to establish and maintain internet connectivity for federal, regional, zonal and woreda offices. It will also create a website and support information databases, and provide an interactive mechanism for DAs, SMSs, staff and other key stakeholders to share best practices with each other.

1.1.3 Support to Animal Production and Animal Health Services

Among the many limitations to increase productivity and production of animals in Ethiopia are shortage of feed, shortage of improved breeds, prevalence of animal diseases and lack of knowledge and skills Attempts were made to address and improve the situation in the AGP I, but the problems are still prevailing. The prioritized activities indicated in the Livestock Master Plan and in GTP II will be taken care in the AGP II. Key areas of interventions in AGP II are proposed as described below.

1.1.3.1 Establishment/strengthening animal production services

(i) Establishing modern bee queen rearing demonstration & training centers

Honey is one of the strategic commodities listed for export and it is an exemplary value chains in the country working actively with actors. Among the actors honey producers, smallholder farmers, landless women and youths organized in CIGs are claiming about the shortage of queen bees/honeybee colonies.

There is no queen rearing center that supplies queens or nucleus colonies to the needy beekeepers and would-be beneficiaries. Effort was made to encourage private sectors to involve into this business but, the ending was nil mainly due to lack of knowledge and information on the profitability of the business. It is therefore, highly required to establish commercial level queen rearing centers that will raise queen bees from selected honeybee colonies with desirable traits. Rearing centers will be established in Tigray, Amhara, Oromiya and SNNP regions. The centers will distribute fertile queen bees to smallholders and would- be beneficiaries in all AGP II target

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woredas. These also serve as centers for organizing training of trainers (ToT) on commercial queen rearing both for selected apiculture extension staffs and private sectors.

The bred queen bees will be distributed to beneficiaries with reasonable price and the payment can be made in cash or on credit bases depending on the agreement made between the parties. The sales price will enable to sustain the operation of raising queen bees for the centers. The activities required include setting up of queen rearing apiaries, providing queen rearing set of equipment’s, tools, artificial insemination apparatus and its accessories, honeybee colonies and technical assistance. The centers will be staffed by the implementers but will be capacitated by the AGP II. The MoA, Regional Agriculture Research Institutes and the Regional Livestock Agencies and/or Core processes will be in charge for the establishment and execution of the activities of the centers.

The rearing centers shall be privatized when awareness on the profitability of the business is created and interest is showed by the private sectors.

(ii) Establishment of fish hatchery center

Fish farming is one of the agricultural businesses that has a direct contribution and benefit for national food security of the large segments of the rural poor communities residing lakesides, diversion dams, and along large river banks. From points of its nutritional value, the regional governments are encouraging households to start pond fish farming and many have started farming and utilization. However, there arises a problem of fish fingerlings for introduction to ponds. So far fish fingerlings were scavenged from the existing lakes but the lakes were found depleted because of excessive exploitation by fishermen. This resulted in deficit of fingerlings. There is no institution that has instigated production of fish hatchery unit in the country. Effort was made to attract private sectors to involve in this venture but the interest showed was nil. Hence, this has drawn attention of the government to establish a centre where fish fingerlings will be produced for distribution to the needy households chiefly to increase the production of fish meat and to improve the nutritional status of the households.

The pioneer fish hatchery centre is planned to be established in Amhara region, where pond fish framings are largely exercised by smallholders. The hatchery centre is intended to supply about 5 million fingerlings annually with reasonable price so as to encourage the operating farmers and the CIGs as well. Pond fish farms will be harvested every 4-6 months and users are replacing the fingerlings in each cycle. This will generate adequate income for the hatchery unit that will allow sustaining its operation.

The program will support the pond system which consists of various compartments with specific uses such as nursery or fry pond, transition or holding stunting pond, production or rearing ponds and other features (catching, food-growing ponds, etc.). The water control structure or gates, pipes and water supply or drainage canals are also parts of the system. Other support facilities consists of farm buildings, farm roads and road dikes, fish tanks, storage shed (for feed and equipment) and ancillary structures.

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The centre will be under the auspice of the Livestock Agency of the Amhara region. The center at the end can be transferred to private operators provided that they are interested to be engaged in the activity and willing to extend its services.

(iii) Strengthening National Artificial Insemination Center (NAIC)

The NAIC is the only center mandated to undertake breed improvement program of low genetic potential indigenous cows for milk production through artificial insemination. However, the center is stranded by a couple of constraints of which lack of a system for performance recording and selection of better milk producing animals and lack of easy and timely access for farmers to better dairy genetic material (semen) are the major ones. Hence, there is need to address these issues through the AGP II.

(a) Dairy Herd Performance Recording

Sustainable increase in milk production cannot be guaranteed without centralized system for dairy herd performance recording and analysis. This ensures the identification and selection of superior dairy sires from which semen for breed improvement will be collected. To bring this in to effect, it is vital that a central dairy herd performance recording system equipped with modern computerized data base management and analysis be established at NAIC. Earlier attempts towards this end have resulted in data base development and analysis for dairy cattle in and around Addis Ababa has promising results. This initiative, therefore, needs to be scaled up in the four major AGP regions. Thus, there is a need to support capacity building in these regions for the initiative to be sustainable. Accordingly, AGP-II is envisaged to support in purchasing ear tags, applicators, recording cards, motorcycles for data collectors, ICT database management, facilities and global or cyber communication systems. Support under this intervention will be implemented by the NAIC.

(b) Electronic data management at semen production centers

Semen processing facilities constructed in each program regions is not linked to the national AI center and information interchanges and modern data management system is not in place. To bridge this gap it is planned to use electronic data management at production centers. The integrated system is a network of computer workstations and other hardware, beginning at the collection barn encompassing all aspects of processing and quality control. This network links all aspects of semen identification and semen processing. Primarily, an integrated system will improve the speed and efficiency of processing. This ultimately will reduce the labor requirements of processing. In organizations where large numbers of ejaculates are managed simultaneously, an integrated system will smooth the process flow by eliminating redundancies. Since all ejaculates, batches and samples are identified by bar code technology, the opportunity to misidentify samples is eliminated. The possibility for human errors is greatly decreased since manual data entry is reduced by the use of electronically interfaced equipment and bar-coding. Database upkeep is eliminated at the barn and laboratory levels.

It is designed to use electronic data management at NAIC and in all 4 semen processing centers (Bahir Dar, Mekele, Hawassa and Nekemte) already established by AGP I. Electronic data

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management facilities will be procured by the AGP II. Support under this intervention will be technically assisted and coordinated by the NAIC. However, the overall responsibility for the implementation will lie on the Regional BoAs/Livestock Agencies.

1.1.3.2 Establishment/strengthening animal health services

Ethiopia's livestock suffer from a wide range of diseases that affect smallholder livestock production and productivity. Poor husbandry practices and inadequate veterinary services are major factors favoring the expansion of livestock diseases. Besides reduced animal production, the prevalence of many infectious diseases excludes Ethiopia from many lucrative international markets or directly influences the quality of export products and thus limits the foreign exchange earnings. In order to overcome such challenges efforts are underway to support smallholder livestock production system through improved veterinary services. However, services provided in this regard are not adequate due to shortage and insufficient laboratory facilities for diseases diagnosis and management.

It is known that the Regional Pastoral Livelihoods Resilience Program (RPLRP) supported the pastoral areas in implementing regional surveillance and networks, upgrading of the national veterinary laboratory network, scaling up of the national livestock epidemiology unit, strengthening and harmonizing animal identification/certification systems, etc. However, AGP II targets the development of over 12 million smallholder producers in the highlands and semi arid areas through establishment/strengthening of animal health services. AGP II also supports the national institutions in activities which are not considered by the RPLRP.

(i) Establishing/ Strengthening national laboratories

(a) Strengthening of poultry disease diagnostic laboratory

Medium to large scale poultry farms around urban and per-urban areas and smallholder poultry backyards which have substantial impact on food security and income are highly suffering from poultry diseases when an epidemic of diseases such as New castle disease, Mar ekes, Fowl cholera, etc takes place. Development of the poultry sub-sector is a major component of the Livestock Master Plan and both village-level backyards and commercial producers require an accurate and prompt laboratory service for surveillance and diagnosis to optimize disease management. This is one of the biggest challenges of the industry. Every year about 56.5% of the population is wiped out mainly due to the aforementioned diseases. The capacity of the professionals and the facilities at the recently organized poultry disease diagnosis laboratory in the country under the National Animal Health Diagnostic and Investigation Centre (NAHDIC) is not sufficient to make diagnosis of poultry diseases. Development of facilities and specialized training are very important to be considered as part of capacity building.

Hence, there is pressing need to strengthen the poultry diagnostic laboratory with the financial support of AGP II. The laboratory will be equipped with the necessary facilities and a standard poultry disease diagnosis manual. The NAHDIC will be responsible for the establishment and implementation of the diagnosis. The laboratory will provide diagnostic services to all clients with reasonable price.

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(b) Strengthening the Central Veterinary Drug and Feed Quality Control Laboratory

One of the documented and important problems of the animal health delivery system is generally poor quality of veterinary drugs supplied / used throughout Ethiopia. The newly established national Veterinary Drug and Feed Administration and Control Authority (VDFACA) has been regulating the import, distribution, sale and use of veterinary drugs and feed and the central quality control laboratory will be an essential tool for this. Post marketing surveillance, including collection of drug and feed samples from markets (for testing for purity and active ingredient content), checks on the storage of drugs, vaccines, feeds, etc. and licenses will be an important activity of the VDFACA. The main aim of strengthening the central quality control laboratory is to support smallholder farmers by regulating veterinary drug and feed products as well as quality assurance of animal products with compliance to international standards. It also ensures provision of safe zoonoses as well as chemical/biological residue free food animals and animal products for human consumption fulfilling established sanitary and phytosanitary (SPS) norms, and ensures provision and utilization of quality assured veterinary drug and feed related equipment.

Currently, the existing quality control laboratory is not providing the required services since support provided to strengthen the laboratory was not adequate. Hence, it is planned that AGP II to supply additional quality control and residue analysis facilities. The veterinary drug and feed administration & control authority (VDFACA) under MoA is responsible for the implementation.

Financial support will be required from AGP II to furnish the laboratory with the necessary equipment to enable the laboratory to become fully operational.

(c) Strengthening the diagnostic and analysis capacities of the National Tsetse and Trypanosomiasis Control Institute

Trypanosomiasis is the most economically important livestock disease in Ethiopia affecting areas infested with tsetse flies (cyclically transmitted Trypanosomiasis) and non-tsetse infested areas (mechanically transmitted trypanosomes). Various tsetse flies infest over 220,000 km2 area of the country and currently Sterile Insect Technique (SIT) is used to eradicate the tsetse flies. Although tsetse flies can be morphologically recognized at a species level, identification of the flies at a strain level is not possible, and a very sensitive technique is needed to help the identification of the flies in different areas of the country. The technique will help to identify the population in different valleys and the presence and absence of population movement (gene flow) between the valleys. This is important in the identification of genetically isolated population to plan the SIT operation accordingly. Likewise the efficacy of trypanocidal drugs can be checked using laboratory animals but this method could not provide full information since it is not very sensitive to detect the presence of resistance at a lower level.

Generally Trypanosomiasis has a massive negative impact on smallholder agricultural production in Ethiopia through its direct effects on animal health and productivity and indirect effects on crop production by depriving farmers the use of oxen. It can be said that it is the most

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critical constraint to smallholder livestock- production system in Ethiopia killing a large population of cattle and disposes animals from production.

Therefore, the diagnosis of Trypanosomiasis, identification of tsetse fly strains and the presence of drug/insecticide resistance will only be made possible through undertaking the test in molecular biology which is a very sensitive diagnostic tool to provide the appropriate information.

AGP II will support the establishment of the molecular biology laboratory through construction, and provision of laboratory equipment’s and office facilities. The laboratory will enable to undertake efficient diagnosis of trypanosomes, drug/insecticide resistance, and knowledge of target tsetse populations at a strain level to take the necessary action. This will make possible to design and implement effective strategies for sustainable tsetse and Trypanosomiasis control and eradication contributing to a sustainable increase of agricultural production. The overall establishment and operation of the laboratory will be managed by the National Tsetse and Trypanosomosis Control Institute (NTTCI).

(d) Strengthening diagnostic capacity of the NAIC

In Ethiopia, the diagnostic test performed at NAIC is limited to two animal diseases, Tuberculosis and Brucellosis. The Office International des Epizooties (OIE) has, under its international animal health code (2001), detailed recommendations for collection and processing of semen and testing of Bovine Viral Diarrhea-Mucosal Disease, Infectious Bovine Rhionotracheities, Infectious vulvo vaginitis, Camplyobacter Fetus Sub sp.Veneralis, and Tricomonas Fetus. Bulls and teaser animals can enter an artificial insemination center only if they are free from the above stated diseases. There is still much test to be undertaken to raise the quality of NAICs’ genetic material against OIE standard. Provision of seven diagnostic kits and ELISA-reader to undertake disease testing technical assistances is required from the program. Support under this intervention will be implemented by NAHDIC and NAIC.

(ii) Strengthening regional animal health laboratories, clinics and health posts

Animal diseases continue to cause considerable economic losses in Ethiopia. Eradication and/or control of these diseases is essential to improve food security and the incomes of farmers. Cost-effective control strategies require accurate and rapid diagnosis of causal agents, detailed epidemiological knowledge, and well designed and implemented monitoring and evaluation programs, for which assistance of regional laboratories is indispensable. Laboratory output is currently well below capacity, due to lack of capacities in terms of staff training and basic inputs.

For this reason animal health laboratories will strengthen the diagnostic and investigation capability of regional laboratories in the highlands and lowlands, respectively, so that they can provide essential technical support for epidemiological investigations, and establishment of effective regional disease monitoring and surveillance through active field studies, village-based disease monitoring, disease outbreak investigations and serological surveys. The animal health clinics and health posts play a crucial role in the prevention and control of economically

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important diseases and AGP II will continue providing support based on the experience from AGP I. It is directed towards the improvement of the livelihood of the smallholder farmers through delivery of prompt animal health services. Through the financial support of AGP, it is planned to strengthen regional animal health laboratories with lab equipment and facilities, equip animal health clinics and animal health posts of new woredas with essential working equipments& devices. Support under this intervention will be implemented by the Animal Health Directorate, regional animal health laboratories, NAHDIC and the Regional Livestock Agencies and/or Core Processes /Bureau of Agricultures.

(iii) Surveillance of major Trans boundary, zoonotic diseases and diseases information system

Disease in farm animals cause annual losses of billions of dollars, a large portion of which is attributable to death, treatment costs and reduced feed efficiency and growth rate. If a disease can be detected very early in the phase of epidemic development, there could be a possibility to arrest and eliminate before it actually inflicts high damage and stop the spread of pathogens to new areas. Therefore, periodical reporting of information on disease outbreaks is paramount to take actions in controlling the incidence. A timely delivery of quality information on out breaking diseases through passive surveillance and established diseases reporting using Smart Phone will strengthen the disease control capacity. The reporting will be collected from all programs woredas out of which some will be confirmed by laboratory tests.

The AGP II support requested here is for those expenses in the highlands of Oromia, and SNNP regions and for other AGP II regions and for interventions not considered by the RPLRP at the national level (for example additional hardware is required, use of the web-based data base management system must expanded and integrated with the smart phone notification system. This will enable a progressive move from the current paper-based system to an innovative and efficient electronic system.

Animal disease surveillance includes active and passive data collection, data management, and diagnostic capability. An accurate and timely surveillance system is critical for early detection, identification, monitoring, prevention and control of TADs and important zoonoses in livestock populations. Ethiopia has a NADSS that includes active and passive data collection, data management, and diagnostic capability. The Veterinary Service Delivery is currently upgrading NADSS by:

– revamping the woreda-level data collection and reporting system;– developing a customized web-based database management and– transferring responsibility for operation of NADSS to the veterinary laboratory

system.

To ensure sustainable impact of these activities, provision of extensive training and infrastructure development in highland areas of Oromiya& SNNP regions and other AGP II regions is very important. In this program surveillance and control strategy for export sensitive diseases such as foot & mouth disease (FMD), contagious bovine pleuloropneumonia (CBPP), lumpy skin disease (LSD), peste des petits ruminants (PPR), sheep and goat pox and others outbreak investigation and animal export will be conducted, risk analysis method and risk based animal disease surveillances to effectively safeguard the livestock trade value chain and securing the export

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market will be capacitated. Moreover, AGP II will support purchase of the smart phones and developing of guidelines to strengthen disease information system and for surveillance.

This will be implemented by Animal health Directorate, NAHDIC and regional animal health laboratories, regional livestock agencies/core processes and public abattoirs.

1.1.3.3 Capacity Development

(i) Human resource capacity development

Lack of knowledge and skills on specialized animal production and animal health has become a critical problem that hinders the rapid improvement of farm animals and increase of their products. This has initiated the need to capacitate animal extension experts at all levels.

The intended capacity building focus on training of trainers of animal production, products processing, animal disease surveillance & health management and good manufacturing practices of veterinary drugs and animal feed. Moreover, package will be developed and awareness creation will be organized on young stock mortality reduction system.

Furthermore, study tours to abroad will be organized on machine maintenance for semen production & liquid nitrogen, feed lot operation, silk processing, forage seed production, veterinary drugs and feed quality standards, quality analysis of veterinary drugs, feeds and animal products & poultry disease diagnosis techniques. Local experience sharing will be arranged on animal fattening and meat productions, small scale dairy production, cocoon production & management. Valuable workshops are proposed to be organized of which the major ones are on shoat ecto-parasite control & hide and skin extension, improved beekeeping package and diversification of bee products. All trainings, workshops and experience sharing visits will encompass nutrition and climate smart agriculture that will be tracked for provision of equal chance for men and women participants.

(ii) Physical capacity development

Manual and documentary video film production for delivering extension services will also be an area of intervention. On top of these, motor cycles, office equipments and facilities will be supplied by the AGP II. The, Animal Production and Feed Resources Development Directorate (APFRDD), AHD, NICETT, NAHDIC, NAIC, VDFACA and Regional Livestock Agencies/Core Processes/ BoAs are responsible for organizing and executing all the capacity building activities.

1.1.4 Crop Production and Plant Health Services

Increasing crop productivity and production through improving access to yield increasing crop technologies and access to adequate support services can be an option for farmers to ensure food, income and nutrition security. The use of high yielding crop varieties and combating crop yield decreasing factors facilitates crop productivity improvement leading to the growth of agro-

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processing enterprise and stimulates the transition from low productivity subsistence agriculture to a high productivity commercial agriculture.

Interventions under this activity will, therefore, aim at improving crop productivity through access to improved crop extension services. Two major activities that are considered under this intervention are promotion of crop productivity enhancement technologies and strengthening plant health service.

1.1.4.1 Promotion of crop productivity enhancing technologies

(i) Search, access, and disseminate good agronomic practices

The aim of this intervention is to access improved innovative crop productivity improvement technologies that are proven in terms of addressing the needs of men and women including market preference. One of the activities of ADPLAC is to create favorable environment to create linkage between research and extension to make easier access to research findings that benefit smallholder farmers. Emphasis will be made to assessment of technologies that are climate smart and are suitable for climate change adaptation and mitigation. Crop technologies and practices such as composting, crop rotation, intercropping, bio fertilizers and agro-forestry, and IPM are some of the CSA technologies to be considered in the assessment and demonstration of improved crop technologies. Technology assessment will be given a focus to nutrient dense crops including postharvest handling techniques.

(ii) Establishing and Strengthening vegetable and fruit NurseriesThis activity is design to achieve the objective of agricultural growth towards improved fruits and vegetables production and productivity and employment generation of the selected areas in a sustainable manner with special focus on women and youth group. Currently a number of such nurseries are established with a support of Mashave and such existing experiences will be pursued.

Fruits and vegetables play considerable role in ensuring food, nutrition and income security of smallholder farmers. Fruits and vegetables are the most important sources of vitamin A, a nutrient important for several metabolic activities in the body. It is noteworthy mentioning that Vitamin A deficiency is a major public health problem in Ethiopia predisposing children to increased risk of morbidity, mortality and disability. Thus, it is evident that sustainable improvements in vitamin A status, and other micronutrients and minerals require interventions aimed at enhancing availability, access and promotion of consumption of fruits and vegetables. However, in Ethiopia fruits and vegetables consumption is among the lowest in the world.

Households must be deeply aware of about the importance of consumption of fruits and vegetable for human health and nutrition, particularly in the growth and development of infants and children. Empowerment of communities in terms of awareness creation and technical knowledge must be strongly pursued to enable the cultivation of fruits and vegetables in their backyard gardens and other suitable areas.

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In view of this, the AGP II will assist establishment and operation of modern nursery sites for, fruit and vegetables depending on suitability of agro ecological zones in the target woredas. The program will support for design and construction, provision of farm tools and equipment and root stocks.

Furthermore, this activity will be aliened to component IV to technically support youths including men and women CIG and facilitate to manage or to own the nurseries. The group will be assisted to produce high economic value and quality seedlings of the intended and demanded crops. The youth group will be trained on nursery management. The program will assist for labor cost at least for one year. The Woreda Crop Extension coordination unit, together with the respective SMS, will be responsible for organizing and technical assistance and follow-up of the nurseries.

1.1.4.2 Strengthening Plant Health Services

With the fast development of the market-oriented agriculture in Ethiopia, the demands for a well-functioning phytosanitary inspection and control system has gained increasing importance. As a precondition for sustained market access and export growth it is essential that Ethiopia’s’ phytosanitary services are in compliance with the international standards and regulations. However, the existing plant quarantine stations at all levels are not capable to provide such services due to lack of adequate laboratory facilities and furniture. Effective and transparent pesticide registration and control system is an important prerequisite for agriculture development for both production and export. The establishment of such laboratory is also vital for residue monitoring and analysis of export crops. This intervention is targeting plant health services with an aim to reduce smallholder crop loses, ensure the supply of safe food for the citizens and also to realize the significance of plant health in domestic and international trade of plants, plant materials and their products. .

Key activities to be conducted include: crop loss database development, strengthening plant quarantine stations, installing federal plant protection laboratory, equipping seed analysis laboratory, strengthening plant health clinics and establishing international standard pesticide laboratory as well as conducting studies and promotion of IPM. The Plant Health Regulatory Directorate of the MoA, together with regional offices, is the responsible organization for the implementation of intervention.

(i) Support to the establishment of crop loss data-base:-Establishment of pre- and post-harvest losses database is also envisioned with an aim to generate a database that will be used as a reference for initiatives including program planning, extension package preparation, awareness creation and training in the area of minimizing pre- and post-harvest losses. The program will support experienced consultant to undertake establishment of the data base in the Plant Health Regulatory Directorate of the MoA. It will also support IPM with an aim to protect smallholder crop plants from damaging pests. This activity is planned to develop and strengthen Integrated Pest Management (IPM) based pest monitoring and decision making at small holder farmers. Availability of the data-base on the crop loss assessment will be a good input of information for the value chain development referred in Component IV.

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(ii) Establishment of plant quarantine stations, plant health clinics: In order to mitigate movement of crop damaging pests from one place to the other, the presence of quarantine system is very crucial. Currently, in Ethiopia practical implementation of legislative measures is executed as inspection and certification at different plant quarantine stations distributed throughout the country. They conduct plant quarantine activities such as import and export inspections and the delivery of the Phytosanitary Certificate. The aim is to have phyto-sanitary measures with in the country with accredited treatment facilities and identifying pest free areas. In view of this the program will support strengthening of the existing quarantine stations through purchase of laboratory facilities and office furniture.

(iii) The purchase of critical laboratory equipment and supplies for the establishment of an International Standard Pesticide Laboratory: - Effective pesticide registration and control system as well as residue monitoring is an important prerequisite to support crop productivity improvement and value chain commodities. The laboratory will serve for analysis, control and management of pesticide residue in agricultural products and pesticide quality control. The program will support establishment of pesticide laboratory in the new building of MoA through purchase of laboratory equipment’s and facilities. This activity will be implemented by the existing Plant Health and Regulatory Directorate of MoA

(iv)Equipping Federal Plant Protection Laboratory and Regional Plant Health Clinics: Currently, there are plant health clinics that are supporting crop protection extension serviettes through diagnosis and identification of insect pests and causative agents of plant diseases. Plant health clinics are therefore giving farmers access to expert advices on pest as well as promoting good pest control strategies. However, there is no functional federal level plant protection laboratory while the regional plant health clinics are not providing adequate advisory service due to lack of laboratory facilities. Thus, it needs to strengthen a plant protection laboratory at federal level and to strengthen regional plant health clinics.

(iv)Support to the national seeds quality analysis laboratory: Seed testing provides essential information for determining the quality of a seed concerning such parameters as germination, physical purity and moisture content. The provision of quality seed of appropriate crops and varieties to farmers will increase their seed security (viability) and food security, and is one of the primary requirements for agricultural transformation. It will also provide support to community based seed multiplication in component IV. It is therefore, envisaged that AGP II will support the purchase of laboratory equipment and related facilities

1.1.4.3 Capacity Development for crop production and plant health services

This activity will focus on improving the capacity of agronomists, entomologists, pathologists and in crop production and protection professionals. Emphasis will be made for equal

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participation of men and women farmers, DAs and SMS. To achieve these goal trainings, workshops, awareness creation activities and experience sharing visits (local and abroad) will be carried with the support from the program. Responsible body for the implementation of these activities will be the Plant Health Regulatory and Agricultural Extension Directorates.

1.1.5 Support to Natural Resources and Soil Fertility Management Services

In Ethiopia land degradation caused by soil erosion, wind erosion, over grazing and mono-cropping are some of the major causes of low and declining natural resource and agricultural productivity. The country has continuously faced challenges in conserving its soil fertility which is mainly caused from fragile soils, undulating terrain, and highly erosive rainfall.

The main objective of this intervention is to build the productive assets of rural communities in selected community watersheds, in ways that sustainably increase productivity and curtail degradation of fragile lands and ecosystems. The key areas of eligible intervention activities include: local level land use planning; support productivity enhancing interventions of community watershed as well as support to soil fertility management services.

1.1.5.1 Local Level Participatory Land Use Planning

This is to support the preparation of community land use plans for decision making on the best uses of the land and its resources for improved, alternative, sustainable development at the grass root level and individual plots. It helps to improve the proper use of land resources and minimize land use competitions through developing and implementing legally supported land use planning. This will improve the land productivity and hence the living conditions of a particular community and environment based in general. The most important milestone activities are data collection (Bio physical and socio economic), land use mapping, and preparation of Local Land Use Plan.

1.1.5.2 Support Productivity Enhancing Interventions of community Watershed

Key activities expected to increase the productivity of agricultural lands by reducing soil erosion and improving in situ moisture conservation. This activity will support implementation of best practices for soil and water conservation to improve soil fertility and soil moisture in the system. Soil and water conservation activities performed by the program will include construction of soil bunds, stone bunds, artificial waterways, cut-off drains, check dams (gully rehabilitation), bench terraces, hillside terraces, trenches, area closure, plantation of multipurpose trees, groundwater recharge interventions in areas where groundwater development is ongoing or planned and the like.

The implementation of sub-programs under this activity will be carried out within the larger framework of sustainable watershed development and management. Thus planning and priority setting for implementing these subprograms will be based on optimizing the overall objective of the watershed rather than individual holdings. Support under this activity will focus on protecting

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and rehabilitating watersheds where small-scale irrigation, water harvesting and micro-irrigation schemes are envisaged.

(i) Farm Land Management: The aim of this activity is to reduce soil erosion and improve agricultural productivity on individual farmland and homestead. This objective will be achieved through applying physical and biological soil and water conservation measures including homestead plantation; mainly fruits, forages and other multipurpose plants by providing seedlings FROM GROUP, COMMUNITY AND GEVERNMENT NURSERIES. These measures will mostly benefits smallholder and generate some public environmental benefits. Therefore, the program will support such initiatives in the form of technical advisory services. The intended beneficiaries will also cover some cost of the program in the form of labor and cash.

(ii) Communal Land Management: This activity requires substantial investments that have significant public benefits, including on the local community, downstream users, and the environment. The program will provide:

- Technical assistance to communities to develop (in a participatory way) local by-laws to govern the use of communal lands, including grazing lands.

- Development of Grazing lands specifically on common property resources.- The establishment of enclosures and natural regeneration of species in woodlands

and grazing lands;- Promote zero grazing/cut and carry, standing hay, - Encouraging watershed based forage development through enrichment planting

(grasses or trees).

1.1.5.3 Support to Soil Fertility Management Services

In Ethiopia, crop production and productivity is affected by a wide set of soil fertility issues. Core constraints include topsoil erosion, acidity-affected soils, depleted organic matter due to widespread use of biomass as fuel, depleted macro and micro-nutrients, depletion of soil physical properties and soil salinity. As a result, smallholder agricultural production and productivity has been seriously affected. The aim of this intervention therefore is to support the whole process of soil mapping, strengthening soil testing laboratories, management of problematic soils, and promotion of organic soil fertility management practices.

(i) Strengthening Soil Testing Laboratories: The aim of this activity is to strengthen services provided by the Central and Regional Soil Testing Laboratories. It is needed to promote soil test based fertilizer application approach to address variability of soil types and their nutrient contents. It helps to provide fertilizer recommendation based on soil map, crop need and deficiency in the soils. The program will equip the laboratories with facilities and chemicals, as well as to develop desired level of skill (capacity building) with respect to soil analysis techniques, modern instrumentation techniques, interpretation of soil test results, fertilizer calibration, and data processing for delineation of deficient areas.

(ii) Support to soil mapping and implementation: - Soil mapping is crucial to provide soil test-based fertilizer recommendation for crop production. Activities on soil mapping has already been initiated by the AGP I but not yet been finalized. In view of this AGP II will

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support on-site technical assistance in mapping and remote sensing, development of computing infrastructure needed for soil sample data management, digital soil mapping and information dissemination and hardware, software, and network setup, at the Ministry of Agriculture and National Soil Testing Center. The program will further support linkage of the system to the woreda agricultural offices for wider and further use of the soil information to address variability of soil types and their nutrient contents.

(iii) Support to Acid soil management: Experiences show that progress made so far in acid soil management in this country is encouraging and need to be strengthened both in efficiency and geographical coverage. Thus, the program will support soil fertility improvement through appropriate acid soil reclamation advisory service including appropriate lime application techniques.

(iv) Support to Bio-fertilizer promotion: The main purpose of this activity is to promote wider use of bio fertilizer that organically improve soil fertility and contribute to reduction of artificial fertilizers. Rhizobia inoculates that when applied to soil has the capacity to fix nutrients like nitrogen from the surrounding environment. Therefore it is very important to identify potential crop producing areas and creating awareness among various stakeholders to increase soil and crop productivity through wider use of bio fertilizers.. In this regard the program will assist training of experts, DAs and farmers in the Program woreda.

1.1.5.4 Capacity Development for Natural Resource and Soil Fertility Management

(i) Human Resource Development: People’s awareness and understanding of natural resources will also be raised through special communication and training. Due to the important role that women play in certain activities related to natural resources management (fuel wood and water collection, cattle grazing), special attention will be given to them. Intervention will includes consultations and awareness creation workshops and conferences on natural resources and soil fertility management, training to experts of service providers at all levels on natural resources management Soil and Water Conservation, GIS training, and soil fertility training to farmers (males and females). The main teaching/learning methods used will be observation (field days) and discussion of the results from demonstrations and ‘hands-on’ exercises. Intra and inter regional/woreda exposure visits and study tours in watershed planning and soil fertility managment best practices, and priority setting at the watershed level will be supported.

(ii) Physical Capacity Development: In this regard the program will support and finance the provision of hand tools, provision of field equipment such as GPS, Topo-maps, High Resolution Satellite Imagery.

Note that in areas where the Sustainable Land Management Program and other similar programs are operating, these interventions will be coordinated and allied with the existing operation of natural resources development.

Activities under natural resources and soil fertility will be implemented by the Natural Resources Directorate, Land Use and Administration Directorate, Soil Information & Fertility Management

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Directorates, National Soil Testing Center, Regional Soil Testing Laboratories and Regional Land Administration and Environment Authorities. .

1.1.5.5 Strengthening Promotion of Agricultural Mechanization Services

Farm productivity is positively correlated with the availability of farm power coupled with efficient farm implements and their sustainable utilization. Agricultural mechanization not only enables efficient utilization of various inputs such as seeds, fertilizers, plant protection chemicals and water for irrigation but also it helps in poverty alleviation by making farming an attractive enterprise. In Ethiopia, nearly all small farmers are still using traditional hand tools and oxen plow, which greatly is restricting crop productivity and production.

The aim of the agricultural mechanization intervention is to support supply of appropriate machines with accessories for pre and post-harvest agricultural production systems that can increase labor efficiency and adoption of the yield-increasing technologies, reduce post-harvest losses and create value addition. Agricultural mechanization promotion will give emphasis to labor and time saving technologies to overcome women and men derogatory work. Agricultural mechanization activities that will be implemented in AGP II include:

(i) Support to the development of standards for Agricultural Mechanization Technologies: This helps to standardize the manufacturing process and the products to enable availability of quality machineries on the market. This activity will support the development of standards of agricultural mechanization technologies based on Agricultural Mechanization Strategy of MoA. It involves introduction, socialization and promotion of standards through different medium. The program also supports training on the guideline for different technologies produced locally and imported.

(ii) Support to Provision of Training to Manual Pump Manufacturers: Under this activity, assessment will be conducted to identify potential manual pump manufactures in the program woredas where ground water is available for irrigation. Intensive training will be provided to the manufactures on the design and manufacturing of the pumps. This activity will be conducted by the Agricultural Mechanization Directorate of the MoA.

(iii) Provide Technical Support for Agricultural Machinery producers, distributers and Service Providers: Agricultural machinery producers and distributors will be identified and given technical support by technical staffs from mechanization directorate of MoA, regional agriculture bureaus, mechanization research centers and partners. Different trainings on design, manufacturing process, quality control issues, service delivery so that the task of bringing the technologies to end-users will be achieved.

(iv)Organize and Support Operators & Maintenance Service Providers: Involving the private sectors and individual entrepreneurs as service repair & maintenance providers had proven to be effective on account of promotion of agricultural machineries. This was attributed to the fact that the service provider was able to go around the villages with his

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machine and collects fee for grating services rendered. In this regard the experience of machine maintenance service providers will be assessed and scaled up through training and provision of maintenance kits

(v) Provide Training for Spare Parts providers: One of the major challenges in promotion of farm machinery is shortage of spare parts and lack of information on the type and number of existing agricultural mechanization technologies available to be introduced by the program and in the hands of users/farmers. The program will therefore support identification of type of spare parts required and provide training and awareness creation to interested potential private sectors providing spare part services.

The implementation of the above indicated activities will be the responsibility of the Agricultural Mechanization Directorate of MoA in collaboration with Agricultural Transformation Agency (ATA), Ethiopian Institute of Agricultural Research (EIAR) and Regional Research Institutes.

Sub-Component 1,2 : Scaling up of Best Practices

The fastest way to increase production is to identify and scale up best practices in wider areas. Thus, the objective of this sub component is to enhance and intensify agricultural production through wider use of proven technologies and practices. The current trend of agriculture in Ethiopia indicates that crop and livestock production and productivity of some progressive farmers is high compared to the agricultural production of the wide community which is characterized by low production and productivity. The main difference is access to improved inputs and techniques and gap in knowledge and skill. In such case, the program will focus in narrowing the gap between average farm yields and those achieved at experimental farms or by progressive farmers. In view of this, the program will support assessment and promotion of improved and proven technologies that will enhance agricultural productivity and contribute to value addition. The implementation of this sub component will pay special attention to making female farmers benefit equally as men farmers. The scaling up process shall also consider proven climate smart agriculture technologies and practices for intensification and wider promotion. Women farmers will be encouraged to participate on technology identification, preparation and implementation. Major activities under this sub-component are discussed below.

1.2

1.2.1 Identification and Compilation of Best Practices

In consultation with key stakeholders, the extension service will first identify improved technologies and management practices in a range of thematic areas related to production, post-harvest handling, value addition and marketing. EIAR and RARIs are the major source of technologies particularly for crop and livestock productivity enhancement. Netherlands supported CASCAPE program will provide support through training and provision of evidence based validation for the implementation. CASCAPE validates and document innovations for scaling up in collaboration with, MoA, Universities, EIAR and RARIs. Best practice identification shall consider also available technologies from national sources including

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universities, civil society organizations and private sectors. Farmers and community as a whole are also important sources of best practices. Best practice assessment shall look into activities implemented in AGP I and other similar programs and that have shown successful results. The lesson from AGP I and other successful programs will then be incorporated.

The identification process will consider the environment in which the pilot program has been operating to identify contextual factors that may have been essential to the success of the practice. It helps also to identify features that need to be re arranged for the practice to be successfully scaled up. Men and female farmers will be given equal opportunity to participate in the scaling up activities. Gender, climate smart and nutrition best practices will be identified and assembled. Identified technologies will then be screened and implementation guideline prepared for each specific best practices.

1.2.2 Implementation of Best Practices

To support the implementation of best practices planning, it is important to build the capacity of service providers and organize and strengthen multi stakeholders’ platform. For effective and efficient extension service delivery, the scaling up program will link to value chain commodities in component IV, and productivity enhancement irrigation activities in component III. This activity will be coordinated by the Extension Directorate and jointly implemented by responsible IAs.

(i) Planning: The Community-level Participatory Planning (CLPP) Manual and the Scaling up Best Practices Manual will guide the planning and implementation of identified and prioritized best practices. The CLPP Manual will be employed for planning, screening, technical appraisal, and approval of best practice at the Woreda level. Value chain commodities identified in "Component IV" will be considered in planning and implementation of identified best practices. Sub program identified will be consolidated and utilized for further planning to be undertaken at regional and national level to support with existing resources, input and manpower.

(ii) Capacity building: To support the implementation of best practices, capacity building will be an essential component of implementation support. It will focus on changes in attitude and behavior, gender equality, skill and leadership commitments. Focus shall be made to Development Agents and medium to high level officials with a particular attention to male and female farmers. It should also build the capacity of private and public implementers along the identified practices as well as gender, nutrition and climate related issues.

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2. COMPONENT 2 : AGRICULTURAL RESEARCH

Component overview

The agriculture sector contributes greatly to the national gross domestic product (GDP), employment and foreign export earnings of Ethiopia. Production and productivity of the sector is, however, low which is attributed, among other factors, to inadequate agricultural (crop, livestock, soil and water management and farm implements) technologies, degradation of the natural resource base, climate change induced risks, population pressure and limited capacity of human and physical resources. The National Agricultural Research System (NARS) has been involved in adapting, generating and demonstrating agricultural technologies that enhance food security, supply inputs to agro-industries and generate foreign currency. The technologies have contributed to the growth of the sector and improved livelihood of the farming community.

In this regard, the use of improved crop production technologies (varieties, agronomic practices and integrated pest management systems) is very crucial. Thus, adapting and generating these technologies for enhancing productivity of the crop subsector is imperative. In the same way, the demand for livestock products is rapidly increasing, attributed to rapid population growth and rising per capita income. A recently conducted livestock sector analysis (MOA, 2014) showed that if no investment is made in technical innovations (breed, feed, health and other husbandry practices) aiming at improvement of the productivity of the sector, there will be a deficit of 1,958 million liters of milk (23%) and 1,213 thousand tons of meat (42%) in 2028. Inadequacy of feed resources in terms of quality and quantity is a critical barrier to improved livestock productivity. In this regard, available evidence indicates that there is a feed gap of 45% at national level. Consequently, promoting production systems based on improved livestock technologies (breeds, feeds, animal husbandry practices etc.) is essential to reverse these situations.

Soil and water management challenges in Ethiopia include soil degradation (acidity, salinity and loss of nutrients) and workability problems (mainly for heavy soils), inefficient utilization of water resources and poor drainage. Furthermore, increasing climate variability and change is also becoming an important factor. These constraints induce reduction in agricultural productivity and hence should be alleviated through effective use of potential technological interventions including soil, water, crop and landscape management technologies that increase resource and agricultural productivity on a sustainable basis. Possible soil and water management technological interventions include: strengthening soil-test based fertilizer recommendations, promoting integrated and sustainable soil fertility management systems and, verification and scaling up of new blend fertilizer formulations, increasing the water use efficiency of irrigated crops and rehabilitation of degraded lands through the use of multipurpose tree species.

Cognizant of the importance of agricultural technologies for improving productivity, in the second phase of the Agricultural Growth Program (AGP-II), attention is given to the need for

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supporting applied agricultural research activities and considered it as one of the components of the program with the objective of adapting, generating and promoting technologies that enhance productivity and commercialization of the sector. Agricultural technology adaptation, generation and pre-extension demonstration activities are envisaged to be implemented by taking into consideration principles of crosscutting issues such as nutrition, gender and climate smart agricultural (CSA). The agricultural research component of AGP-II program is composed of the following sub-components:

Technology Adaptation and generation ; Pre-extension demonstration and Participatory Research Schemes Source Technology Production Capacity development to enhance technology adaptation, generation, maintenance and

promotion

Sub-component 2.1: Technology Adaptation and Generation

The Program will support the adaptation and generation of improved and innovative technologies to enhance agriculture productivity and commercialization of small scale farmers. The component will focus on release-ready technologies that are in final or test stage (with duration to release the technology to extension of a maximum of two years) or on technology that has been released in other regions and that could be tested and introduced in the Program woredas. The intervention will comprise of two main groups of activities: (i) support to accelerate release of selected in pipeline technologies and management practices; and (ii) support to adaptation and generation of demand-driven technologies.

2

2.1

2.1.1 Support to Accelerate Release of selected pipe line Technologies ፡-Under this group of activities, the Program will support the accelerated release of the following pre-identified in pipeline technologies:

i) Improved crop varieties and management practices including the accelerated release of crop varieties and agronomic and integrated pest management technologies such as crop varieties with high quality, resistant/tolerant to biotic and abiotic stress;

ii) Improved dual purpose poultry breeds focusing on the accelerated release of existing dual purpose local poultry breeds;

iii) Forage varieties and management practices including high quality varieties resistant/ tolerant to biotic and abiotic constraints;

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iv) Irrigated agriculture management technologies such as (a) the determination of crop water requirement and local crop coefficient (Kc) for major crops; (b) the assessment of the response of major crops to deficit irrigation, soil moisture stress and supplementary irrigation; (c) the evaluation of efficient water use technologies (deficit, drip and alternate furrow irrigation); (d) the integration of water harvesting and micro irrigation for efficient water use; (e) the characterization and monitoring of salt affected soils and irrigation water in major irrigated areas; and (f) the development of irrigation agronomy practices for major crops and determination of leaching requirements for saline soils;

v) Management technologies for acid soils and vertisols such as (a) identification of superior Nitrogen-fixing strains under limed and non-limed conditions; (b) evaluation of acid tolerant food and industrial crops; (c) determination of appropriate rates of lime and nutrient requirements of acid soils; (d) evaluation of different cropping patterns, drainage systems and drainage implements for improving the productivity of selected crops on vertisols; and (e) adjustment of crop calendar for double cropping and diversification of high value crops on vertisols;

vi) Integrated nutrient and crop management technologies: (a) development of soil test based fertilizer recommendation packages for major crops and soil types; (b) identification of method, time and frequency of Nitrogen fertilizer application for enhanced fertilizer use efficiency; (c) identification of effective Nitrogen-fixing strains for improving major pulse crops; (d) evaluation of different Phosphate solubilizing organisms for major crops; (e) evaluation of green manure crops for soil health and crop productivity improvement; (f) development of suitable cropping systems (cereal-pulse rotation, intercropping) for diversification and intensification; and (g) evaluation of different crop residue management systems, tillage practices and moisture retention methods;

vii) Soil and water conservation based agro-forestry technologies: (a) evaluation of technological options for landscape diversification of ex-closures through introduction of best bet multipurpose tree species for soil and water conservation, feed and income generation, and (b) evaluation of physical soil and water conservation technologies (bench terracing, water harvesting structures) that enhances the survival and adaptation of multipurpose tree species.

2.1.2 Support to adaptation and generation of demand driven technologies

The application of agricultural technologies and knowledge to boost agricultural production and productivity is one of the priority public interventions in Ethiopia. Thus far, through concerted efforts made by the NARS quite a number of agricultural technologies and knowledge have been adapted, generated and disseminated and these technologies have significantly contributed to the sustained increase of agricultural production and productivity. However, the productivity level of the majority of agricultural commodities is still far below what can potentially be achieved. Biophysical challenges like climate change, disease and pest incidence, land degradation and reduced soil fertility and low level of farm implement technologies, etc and socioeconomic constraints such as population pressure and reduction of farm sizes, and increasing demand for nutritionally enhanced agricultural products justifies the need for participatory and demand

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driven technology adaptation, generation and demonstration efforts that respond to the demand of smallholder farmers and other concerned actors along the prioritized agricultural commodities’ value chains. In view of such emerging challenges, sustained support to demand driven agricultural research activities in the areas of crop, livestock, soil and water management and farm implement is very crucial. This proposed task of adapting and generating participatory and demand driven agricultural technologies will be accomplished as follows.

Participatory analysis of the agricultural technology needs of the farming communities (men, women and youth) in different agro-ecologies and production systems with focus on AGP-II program areas, and priority crops and value chains of the program;

A comprehensive appraisal report elaborating agricultural production problems will then be prepared and these reports will suggest proposed areas of demand driven research issues to alleviate the identified agricultural production problems;

Assess, access and select potential agricultural technologies in collaboration with communities in AGP-II program areas, NARS partners and MoA.

On-farm testing of the potential agricultural technologies across locations (per the guideline of NARS) in potential agro-ecologies of AGP-II program areas under the management of NARS entities:

Technologies performing better than the local/standard ones in yield, quality and/or other parameters will be evaluated in participatory schemes using FREGs and will be recommended for release;

Source seed of the identified/recommended agricultural technologies will be produced and supplied to research-extension liaison wings of NARS, relevant ADPLACs’ members and actors of the other components of the AGP-II for wider dissemination in AGP-II woredas.

The forgoing technology adaptation and generation activities will be implemented by EIAR, RARIs, and their sectoral directorates catering mainly for AGP-II program areas.

Sub-component 2.2:Pre-extension Demonstration and Participatory Research Schemes

Technology development by itself is not an end to achieve the desired development objectives in general and improve the livelihoods of smallholder farmers in particular. Evidences show that other than socioeconomic constraints, the adoption of improved technologies by smallholder farmers are very limited due mainly to lack of information and awareness. This gap could be addressed by adopting a participatory approach involving farmers early in research demonstrations and popularization of new technologies. This participatory research approach will enhance the adoption of newly developed agricultural technologies that increase the productivity and market surplus of smallholder farmers. These activities are well aligned with activities in component I.

2.2

2.2.1 Support to on-farm pre-extension demonstration activities

Pre-extension demonstration is the first stage of the extension phase where newly recommended agricultural technologies are demonstrated to the farmers for their technical and economic viability so that it will further enhance the rapid diffusion and adoption of the new technology in

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wider areas. Pre-extension demonstration is normally carried out in a specific location for a period of 1 to 2 cropping seasons depending on the uptake and nature of the technology.

The pre-extension demonstration activities are done following certain procedures and principles. At this stage, the research will identify participating farmers in the target areas with close collaboration with the local office of agriculture and administrations. The number of participating farmers could vary from 100 to 200 farmers per woreda depending on the nature of the technology. Based on the number of participating farmers, the necessary amount of inputs will be prepared and delivered to the target areas. Here, the participating farmers will receive the technology on a revolving scheme so that more farmers are further reached with the new technology. For instance, for crop varieties, the research will provide the initial seed while the participating farmers will manage to handle other necessary inputs for effective implementation of the demonstration. Hence, the demonstration activities are also meant to serve for technology multiplication. Prior to the actual implementation of the demonstrations, farmers and other stakeholders will be given a brief training on the characteristics and management aspects of the new technology. Moreover, in order to demonstrate clearly the performance of the new technology (for instance, new crop varieties), a minimum of a quarter of a hectare per participating farmer will be allotted and the demonstration will be done on a clustering basis where 20 to 30 farmers with adjacent plots will plant similar crop variety.

Besides demonstration, the research will carry out popularization of new technologies which is somehow larger than demonstration in terms of area coverage and participating farmers. The demonstration activity commonly covers two to three woredas while the popularization of new technologies will address more woredas. In general, the main purpose of both activities is to show under on farm conditions that the recommended technologies are superior to the local practices so that farmers’ awareness and wider technology adoption will be increased. In order to increase the awareness and adoption of improved agricultural technologies by smallholder farmers and improve their livelihoods, the program will implement pre-extension demonstration and popularization of technologies (crop, livestock and forage, land and water, farm mechanization, food science). The activities will be implemented based on annual sub Project proposal developed by the research based on the local demand obtained from the Agricultural Development Partners Linkage Council (ADPLCs).

2.2.2 Establishment and strengthening of Farmers' Research and Extension Groups (FREGs)

Currently, different participatory research approaches have been developed and promoted based on the basic premise that farmers do have an extensive stock of knowledge about their environment and hence their perceptions should be treated early in the technology development process to ensure that technologies generated are accepted and widely adopted. In this regard, FREG is one of the participatory researches and development approaches which was established with the major objective of enhancing effective and efficient technology generation and dissemination process.

It is important to note that the agricultural research system has been making great progress over the last ten years or so in adopting different participatory approaches including FREG. FREG is

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very instrumental in linking farmers, research, extension and other stakeholders in technology development and transfer process. It will involve different farmer groups (men and women), research, district agricultural offices, cooperatives, and other development partners. AGP also acknowledges that FREG is an important participatory agricultural research approach in addressing the critical needs of smallholder farmers. Therefore, the program will support the establishment and strengthening of FREGs in such a way that the smallholder farmers actively participate in the technology development and transfer. In addition, it will strengthen FREGs through training, experience sharing and facilitation of regular meetings, workshops and information and communications.The pre-extension demonstration activities, and the establishment and facilitation of FREGs will be implemented by the socio-economic and research-extension wings of the EIAR and RARIs in collaboration with ADPLACs platform members and other components of the proposed program.

Sub-component 2.3-Source Technology Production

Production of early generation (breeder and pre-basic) seeds and planting materials for further multiplication by concerned value chain actors and on farm technology pre-extension demonstration are very important to sustain the overall operation of the technological innovation systems. These activities are also aligned with the activities of component I.

2.3

2.3.1 Production of breeder seed and pre-basic seeds of major crop varieties

Breeder and pre-basic seeds/planting materials are the basis of any crop production endeavor. These classes of seeds should always be of high quality and purity. Otherwise, the variety deteriorates within short period and certified seeds produced from such seeds will be of poor quality. To address the demand for high quality seed/planting material of AGP-II, there is a need to purify and produce source seeds of demanded and top performing varieties of the selected value chain crops. The seeds will be produced both during rainy and dry seasons in which the latter needs irrigation facilities. Similarly, productivity of some important horticultural crops (sweet potato, potato, pineapple and banana) has been declining from time to time due to viruses. Conventional plant protection measures did not alleviate the problem because viruses are mainly transmitted through planting materials. Moreover, these crops are propagated by vegetative means and have low multiplication ratio; thus it was not possible to get sufficient and healthy planting material. However, use of seed/planting materials multiplied through tissue culture (TC) would help in producing virus free, true to type planting materials of high value horticultural crops within a short period. Breeders, farmers groups, seed enterprises and cooperatives will be involved in multiplying the seeds. The objective of this activity is to produce breeder and pre-basic seeds of breeder and pre-basic seeds and tissue culture materials for varieties released from the NARS to ultimately supply sufficient and high quality seeds to AGP-II woredas for further multiplication and use. The following are the major tasks to be accomplished:

Participatory assessment of breeder and pre-basic seed demand; Purify breeder seed and pre-basic seeds of the identified released crop varieties;

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Multiply the seeds with due emphasis on seed quality (viability, germination and genetic purity);

Supply the multiplied high quality pre-basic seeds of the selected crop varieties to multipliers in AGP-II woredas.

2.3.2 Mass multiplication of disease and insect free tissue culture materials.

The Program will support the production of disease free and true to type seeds/planting materials of high value horticultural crops. For multiplication of tissue culture materials for highly demanded horticultural crops, the following activities are undertaken:

Participatory identification of type and quantity of planting material; Multiplication of plantlets/mini tubers in TC labs; Acclimatization of TC derived materials in screen houses; Nursery establishment and multiplication of mini-tubers /plantlets under field condition; Dissemination of the TC materials to research centers, commercial vine/mini-tuber

multipliers and farmers.

2.3.3 Production of source livestock and forage technologies

Livestock technologies generated by research entities should be multiplied and maintained to be used as source for large-scale production endeavors. Such activities include multiplication of breeder and pre-basic forage seeds and preferred animal breeds. AGP-II will support the following activities:

Participatory needs assessment of the breeder and pre-basic seeds of forage crops and selected animal breeds within the context of AGP-II;

Production of pre-basic forage seeds as source for on-farm forage technology pre-extension demonstration and pre-scaling up activities (mainly for component I).

Production of selected poultry breeds as source for on-farm technology piloting and supply to poultry producers through implementer of Component I;

Supply the produced seeds/planting materials to users.

2.3.4 Land and water resources technology multiplication

Land and water source technologies should be available for technology testing and promotion and provision to beneficiaries. But these technologies are not readily available in the amount required to reach many beneficiaries. Thus, multiplication of source technologies of bio-fertilizers (faba bean, soya bean, common bean, chickpea and lentil) and soil and water conservation based agro-forestry species such as moringa, jatropha, sesbania and tree lucerne is very important. The following are the major tasks to be accomplished:

Participatory identification of land and water technologies source technology demand of the AGP-II operational areas;

Multiply the technologies with due emphasis on productivity and quality; Supply the technologies produced to multipliers and/or users in AGP-II woredas.

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Sub-component 2.4: Capacity development to enhance technology adaptation, generation, maintenance and promotion (physical and human capacity)

The status of transport facilities and agricultural machineries in terms of both number and functionality is very limiting in the research system. Shortage of irrigation facilities in most research centers is also other major problems observed. Moreover, most analytical laboratories are inefficient and not functioning up to the standard. Thus, strengthening the capacity of the research system with vehicles, agricultural machineries, irrigation facilities and laboratory equipment and supplies is indispensable for proper functioning and enhanced technology delivery of the research system. Moreover, it is very important to strengthen the capacity of the research human power with provision of short-term skill enhancing trainings. Hence, the objective of this sub-component is to build the capacity of the research system to effectively deliver technologies. The AGP-II program will support the following capacity building interventions, with needs assessment preceding the proposed areas of capacity building interventions.

(a) Physical capacity including, mobility and machineries such as farm machineries (tillage, planting, harvesting),development/rehabilitation of irrigation facilities (pivot, drip, pump borehole), and establishing/strengthening of cold stores.

(b) Critical equipment and facilities for the crop protection and quarantine laboratories, the soil analysis laboratory, the agronomy-physiology/seed laboratory, the post-harvest and quality laboratories, the animal health and nutrition laboratory, the biotechnology/tissue culture laboratory, the Geographic Information System and remote sensing laboratory, the establishment of automatic agro-meteorological stations, and cold stores, green, net and lath houses.

(c) Human capacity development including short term trainings for researchers and technical assistants, workshops and knowledge sharing activities, trainings of trainers to strengthen links between research and extension

3. COMPONENT 3: SMALLHOLDER IRRIGATIONDEVELOPMENT

Component Overview

Smallholder agricultural production in Ethiopia is predominantly rain-fed depending heavily on the summer rains (June to September) in a single crop per year and non-diversification of local farming systems. Moreover, production is highly subjected to uncertainties such as drought flood and erratic rainfall. Therefore, it would be difficult to achieve the agricultural development targets identified in the GTP without mitigating the adverse impact of erratic rainfall. To overcome these challenges, there is a need for improved water control and management for irrigation.

Irrigation is a vital input for increasing the productivity of agricultural land. Irrigation as an input could make significant impact on agricultural productivity as well as in increasing cropping intensity in irrigated area. Irrigation is also a fundamental condition for building resilience to climate change; and hence to minimize the effects of climatic condition of the country. In spite

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of this, there is a lack of water control for irrigation in most of Ethiopian agriculture. The issue is not only with the lack of infrastructure, but also with the weak capacity in water management and water use organizations. To address this challenge, there is a need to develop effective water management and irrigation practices by having effective linkages between farmers and service providers and improving understanding of marketing issues that will ensue once the expected production gains are realized.

Although Ethiopia is reported to have more than 2.0 Million ha of irrigated land, the scheme performance is estimated to be on average 30 percent below design estimation, implying a considerable loss of irrigated land. The main issue contributing to operational problems in irrigation systems is the way they have been designed, constructed and/or managed. Flawed designs without considering geographical and hydrological factors have contributed to several existing systems frequently being in disrepair, where failure is inbuilt in the design and/or construction. Consequently, such irrigation schemes have not been able to provide better services. This, in turn, has led to water scarcity and conflicts arising from the inability to distribute allocated water to all the farmers in the scheme. Poor distribution infrastructure system design has also forced farmers to irrigate from plot to plot, which has been contributing to water wastage and shortage downstream.

Irrigated crop produces have the best potential return on investment for farmers. However, this potential has been difficult for smallholder farmers to realize because of limited access to quality seeds, scarcity of local wholesalers as well as absence of agro-processing facilities, storage facilities and market linkages. In particular, most of the irrigated agriculture outputs are perishable requiring special storage, processing, preservation, and transportation facilities. Inadequate storage, post-harvest handling and processing facilities in rural areas have led to products being sold directly from the field leading to low price captured by the farmers. To address this inadequacy, there is a need to provide high level expertise, mobilize huge initial investments, and effectively develop effective business models to address risks associated with long gestation period and low rate of returns on investment.

The objective of this component is to increase the access to and efficient utilization of irrigation water of smallholder farmers. For the realization of this objective, the AGP II intends to develop appropriate small scale irrigation systems and introduce improved irrigated agriculture advisory services including irrigation water management practices for the smallholder farmers in order to boost crop production.

In addition, this component will have complementarities with other core components especially component 1 and 4 as irrigation is key input to increase productivity. The smallholder irrigation7 component will directly benefit from the strengthened public advisory services in component-I which will directly contribute to the strengthening of the irrigated agriculture extension. Subcomponent of adaptation and generation of land and water resources technologies under component-II will directly contribute to strengthening the component-III through generation of irrigation technologies. While the component-IV activities will improve access to quality seeds,

7Irrigation systems owned and managed by smallholder farmers with command area less than 1000 ha.

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increase local wholesalers as well as improve storage facilities and market linkages which will contribute to the development of market for irrigated agricultural produce.

This component addresses cross-cutting issues as follows: Increasing the participation of women in decision making bodies of IWUAs, enhancing

women’s knowledge and skills in irrigated farming through training, targeting women’s tailored activities such as household irrigation technologies (hand-dug wells, etc), and promoting irrigation plus approach for domestic water supply as part of irrigation development.

Though SSI interventions are mostly climate smart in nature, the program envisages introducing efficient irrigation water management practices through training and water saving technologies such as drip and sprinkler systems.

Regarding nutrition the component will focus on promoting nutritionally dense crops such as vegetables and fruits on irrigated farms through training specifically to women.

The component will promote the development, expansion, improvement, upgrading and/or rehabilitation of SSI subprograms8 where technically feasible, economically viable, socially acceptable and environmentally friendly. It will focus on the development of new and rehabilitation/improvement of existing smallholder irrigation systems including household irrigation as well as support to Irrigation Water Users Associations (IWUA) and other farmer organizations/groups for irrigation development.

Sub-component 3.1: Small-scale Irrigation Infrastructure Development and Improvement

Improving water situation of a country is of paramount importance if economic growth in a country is to be sustained. Therefore, improved water resources control is expected to play a fundamental and multifaceted role in the process of economic transformation of Ethiopia. However, the huge water potential in the country for irrigated agriculture lays largely unexploited due to lack of investments in irrigation infrastructures.

Therefore, the main objective of this subcomponent is to increase area of irrigated land for smallholder farmers by developing SSI infrastructures to improve the security of (availability of and access to) irrigation water. This could be realized by rehabilitating, improving and upgrading the existing irrigation systems, and establishing new smallholder irrigation systems (SHIS) as well as household irrigation systems from surface and ground water sources.

Under this sub-component the following key activities are envisaged: Rehabilitation9, expansion/extension10, upgrading11 and/or improvement12 of existing SSI systems; Establishment

8

9Rebuilding/restoration of non- functional/damaged structures to give the services as per prior design10Expanding the command area through provision of additional structures such as extension of canals, night storage, etc It may include improving the design for efficient conveyance and application of water11 Replacing traditional irrigation structure with modern structures to improve the durability of the structure, improve conveyance efficiency and hence increase the command area.12 Redesigning and reconstructing of structures (with new works being constructed or design changes made to upgrade the irrigation systems -off farm and/or on-farm) to improve water conveyance and distribution systems.

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of new SSI systems; Establishment of new micro-irrigation and household irrigation systems (MHIS); Design and construction of access road for irrigation schemes; Capacity Development (Physical and human).

At national level, the Natural Resources Sector will coordinate and oversight the overall planning and implementation processes of the component activities. The component will be mainly implemented by regional BOWR/IDA and their respective woreda offices. Design and construction works will be outsourced to the private sector.

3

3.1

3.1.1 Rehabilitation and/or Improvement of Existing SSI SystemsThe potential for the production of crops products on existing irrigation programs in many of the developing countries of the world including Ethiopia appears enormous, because irrigation has been enhanced in the past few decades. It is, however, common to find that the performance of the great majority of these programs fall far short of expectations and potential. Most of the existing SSI systems are underperforming both in cropping intensity and productivity parameters. Canal structures and other farm-level infrastructures are often left incomplete. Many studies reported that in operation, most SSI systems have water use efficiencies of less than 40 per cent; brought under effective command area much less land than has been planned. Cropping intensities on land which is irrigated usually fall far short of program. Water deliveries to farmers are often unreliable. The supply of water is frequently very inequitable, with those at the top end receiving more than their fair share, and those at the tail end receiving supplies which are small, uncertain and untimely, if indeed they receive any water at all. In consequence of these and other shortcomings, the productivity of crops resulting from irrigation facilities almost invariably lags far behind the targets set and what is technically feasible.

Major bottlenecks/constraints that hinder implementation speed in this regard during AGP phase I are (i) absence of scheme data base for re-planning; (ii) absence of standard rehabilitation approach and guidelines; (iii) weak institutional capacity at zonal and woreda levels; and (iv) inadequate attention to rehabilitation and upgrading interventions, i.e., excessive focus on new construction.

Therefore, the improvement of irrigation services in existing systems is a problem that needs to be addressed through a combination of both “hardware” and “software” solutions. The hardware development involves improving/rehabilitating existing water structures (off-farm13 and on-farm) to improve reliability of supply as well as developing groundwater to augment lean season water supply. Rehabilitating, improving and/or upgrading the physical infrastructure is often one of the main pathways to improving the performance of irrigation systems.

13 Head work structures and conveyance canals with associated structures

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The needs for rehabilitation, improving and/or upgrading the physical infrastructure may have arisen as a result of numbers of root causes, all of which have resulted in a failure to invest sufficiently in maintenance of the irrigation systems. The returns to rehabilitation and modernization can be immediate and significant, though it is important to note that these benefits can often be short-lived if associated institutional measures, such as improved management, operation and maintenance procedures, including service fee recovery, are not also put in place to complement the physical improvements.

It is important therefore that the rehabilitation and modernization process is properly monitored and evaluated. Therefore, the intervention of “software” solutions is critical and requires the development of more efficient mechanism for delivery and management of irrigation system up to the field level through a clear delineation of responsibilities between the regional government, in charge of infrastructure development, and the Irrigation Water Users Associations (IWUAs), in charge of delivering irrigation services to farmers.

This intervention also supports the preparation of guidelines/procedures for revitalizing and rehabilitation of small-scale irrigation systems which are no longer performing well due to a combination of infrastructural, social-economic, institutional and governance problems, among others.

Hence, the objective of this intervention is to make existing SSI fully functional to its design capacity and/or beyond through rehabilitating, improving and/or extension of existing irrigation infrastructure and keeping the operable infrastructure functional. In this intervention, non-functional or partially functional modern SSI systems will be rehabilitated and/or improved and operational, and traditional smallholder irrigation systems will be upgraded/improved and operational.

Under this activity 50 existing small-scale irrigation systems with command area of 10,000ha will be rehabilitated, upgraded and/or improved. The AGP II will finance the rehabilitation and improvement of head works, conveyance systems, on-farm irrigation structures, water application methods and others to provide the higher standard of water control necessary to improve yields and increase cropping intensity. All these interventions will help the irrigators at least to regain the original designed capacity of the systems and in some cases some more command area than the original designed capacity due to improved conveyance efficiency, improved application efficiency and additional irrigation infrastructures.

The following activities are envisaged:

(i) Developing SSI rehabilitation and revitalization guidelines: The rehabilitation work should be led by standards and guidelines. The guidelines/procedures are based on the understanding that an irrigation scheme consists of four mutually interlinked systems: the physical system, the cropping system, the economic system and the social-organizational system. It combines both hardware and software rehabilitation processes to lead to a comprehensive revitalization of an irrigation scheme. Therefore, issues related with technical, social, environment and economic aspects will be included in the guideline.

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This guideline developed by professional at federal level or recruiting consultants and validated by relevant stakeholders which will be shared to all implementing partners/stakeholders.

(ii) Inventory of existing SSI subprograms: Inventory of existing SSI subprograms for rehabilitation and/or improvement including operation and management will help to identify the schemes with problems that are functioning under capacity and don’t serve the planned beneficiaries as per the design. This inventory work will be conducted by regional experts in collaboration with woreda experts or by recruiting consultants.

(iii) Conduct diagnosis of the existing schemes and design the rehabilitation/improvement of schemes: Based on the inventory result and extent of the problems, prioritized implementation plan will be prepared considering the impact of the rehabilitation and feasibility of implementation of the rehabilitation. The bio-physical and socio-economic conditions of the existing SSI systems will be thoroughly evaluated, redesigned and planned as per the actual need. This work will be done by regional and woreda experts with the support from national FCU. Consultants would also be involved in case of complex rehabilitation work.

(iv)Rehabilitation and/or improvement including expansion/extension of existing modern SSI systems- The AGP II will assist the reconstruction of damaged/non-functional head works, conveyance systems, and/or on-farm infrastructures; repair/maintenance of partially functional leaking headwork, conveyance systems, and/or on-farm infrastructures; improvement of canals through lining or changing in to closed canal systems; construction of additional canals/structures for expansion of command areas; improvement of water distribution structures at the field level such as additional off-takes, crossing structures, etc.; and changing the current water application methods to more efficient one such as surface irrigation systems into sprinkler and/or drip irrigation systems (water saving technologies). Based on the complexity and requirements the rehabilitation work for a specific scheme will be managed either by woreda, or region with close support from federal.

(v) Upgrading and/or improvement of existing traditional SS irrigation systems: This would be done through replacing temporary diversion structures with permanent ones; improving canal alignment and lining with masonry to improve conveyance efficiency; construction of on-farm irrigation structures such as off-takes, and crossing structures; etc. Woreda and regional experts will take the responsibility for the execution of this activity with close support from the federal.

3.1.2 Micro14Irrigation and Household15 Irrigation Systems

Micro and Household Irrigation Systems (MHIS) comprise the full set of simple technologies that set up farmers for irrigation at the group or household level. MHIS are constructed in locations where larger forms of small-scale irrigation water supply systems (diversions, lifting, and storage) cannot be feasible and constructed due to technical factors such as water availability, topographic unsuitability, etc. MHIS have some advantages in common.

14Household irrigation systems (HIS) comprise command area less than 5 ha, for plots of fewer than ten households.15Micro-Irrigation Systems (MIS) comprise command area less than 20 ha for plots of greater than or equal to ten households.

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Box: Common Advantages of MHIS

Are usually found close to the point-of-use (mostly a few meters distance or only a well’s depth away if shallow ground water development)

Can be scaled up and developed quickly at low capital cost by individual smallholder farmers investment as almost all the investments in the MHIS would come mostly from smallholder farmers through credit service schemes

Mostly use local labor and materials for construction and simple technologies to operate and manage

The main objective of this intervention is to increase smallholders irrigated area by promoting and establishing micro- and household irrigation systems (MHIS). Small stream diversions, ponds, hand-dug shallow wells, tube shallow wells, engine and manual pumps, check dams, and springs, water harvesting and micro-irrigation technologies/structures planned for the implementation of MHIS are envisaged in AGP II. The construction of micro-irrigation and household irrigation structures is principally designed to provide water for crop production as supplementary or full irrigation; but could also be used for domestic and/or livestock water supply.

As such programs are supposed to be independently managed by a household or smallholder farmer groups. In this case public efforts to promote household irrigation will necessarily rely on interventions on a systemic level to facilitate smallholders’ independent access points to irrigation at the household level. The benefits of MHIS are clear and measurable in terms of productivity, household income, production diversification and increasing the availability of varied household diets.. Therefore, the positive impact of MHIS both at the household and community levels is considerable. Under the support of this activity, it has been envisaged to equip 25,000 ha of land with micro- and household irrigation systems.To support household irrigation technologies, AGP will promote the use of robust and demand–driven interventions, including:

(i) Water Resource Identification for SSI Development: Identification of potential water resources for MHIS will remove a key obstacle to the adoption of micro and household irrigation. Not only will it help planners and policymakers set a national strategy, focusing irrigation interventions only where they make sense, it will help woreda-level officials justify the wisdom of investment in irrigation-supporting infrastructure. Specifically, defining the shallow groundwater potential will help smallholder farmers to predict the likely success of drilling wells before that costly investment is undertaken, guiding them as to the depth of the wells and the chance of success. Knowledge on the nature of springs (perennial or seasonal) will help to design the appropriate MHIS types such as full or supplementary irrigation. Defining technically feasible rainwater

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Box: Common Advantages of MHIS

Are usually found close to the point-of-use (mostly a few meters distance or only a well’s depth away if shallow ground water development)

Can be scaled up and developed quickly at low capital cost by individual smallholder farmers investment as almost all the investments in the MHIS would come mostly from smallholder farmers through credit service schemes

Mostly use local labor and materials for construction and simple technologies to operate and manage

harvesting techniques would allow SHFs to have access to water for MHIS. MHI activities are mainly implemented by woredas with close support of Federal agencies specifically on problem solving and resource identification.

(ii) Development of small stream diversions and springs: Streams with minimum flow and with seasonal behaviors can be used for MHIS development. This is possible using different techniques like diverting the stream using local materials or storing for later use. This type of diversion perhaps doesn’t require complex engineering design and hence can be done using the skill of woreda experts or smallholder farmers. AGP II would assist in availing technical equipment, hand tools, and training of experts. In addition, springs would be developed to be used for MHIS. The development of springs with minimum flow and seasonal by their nature would be coupled with storage technologies and used during the actual MHI time. Springs with relatively higher flow and perennial in their nature, they will be diverted using gravity system or pumped to the command area. The implementation reasonability of this activity will lie mainly on woreda experts however regions would provide technical support while AGP II will assist in the development of skill and provision of technical equipment and hand tools.

(iii) Development of shallow groundwater (<30m): A mapping of shallow groundwater at the national level will be critical to the success for the promotion of the MHIS and developing shallow groundwater. It will also help to guide stakeholders’ decision-making in this arena, and ensuring resources are invested wisely and well. A range of technologies exist for this function; on a coordinated national level. Once the mapping exercise is completed, the development of shallow groundwater will commence for MHIS. However, the ground water mapping exercise could not be completed within the envisaged program; and hence could not be planned in AGP II. Therefore, this exercise could be carried out only for limited program areas by federal or regional implementers. The development of ground water includes shallow hand dug wells and shallow tube wells and will be carried out based on available data. The implementation of this activity will be led by woreda with technical support from the regions.

(iv) Promotion of Water-harvesting technologies: Water-harvesting technologies will be promoted to catch and store water from various sources (rainwater, surface and/or ground water). Storage of harvested water can occur in soils by diverting flood water to the farmlands, small tanks if water supply is regular (e.g., groundwater pumping), or large, underwater tanks for longer periods of time (as common with rainwater). Plastic sheeting and other lining methods will be used to line tanks and reduce seepage. This intervention includes the introduction and construction of different ponds, surface and sub-surface water tanks, and ground water recharge structures (percolation tanks)… etc.

(v) Promotion of low cost water-lifting technologies: These include different types of irrigation pumps such as portable diesel/petrol and electric irrigation pumps, manual pumps, and other water lifting mechanisms (like pulleys), and can tap into surface water or groundwater made accessible by a shallow tube and hand dug wells. In particular, the small low-lift motorized pumps driven by small petrol or diesel engines with a capacity of 1.5 to 5 HP and a typical discharge of 2–15 l/s irrigating 1-5 ha will be promoted. During AGP II period effort will be made to implement the recommendation of pump supply chain study conducted during AGP I so that the SHFs will have pumps that is

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distributed through efficient channel and have access to after sales services. Since pump standard is developed during AGP I, irrigation pump manufacturing and importation will be guided based on this standard.

(vi) Promotion of low cost drilling technologies: Low cost drilling techniques have had a huge impact on the availability of water both for drinking and irrigation in few areas of the country. There are several potentially suitable low-cost and sustainable drilling solutions for smallholder private irrigation; the choice of the technique depends on the intended application and on environmental and hydro-geological conditions. Manual auger and wash-bore drilling techniques are commonly used in areas where the soil is soft, whereas percussion and sludging techniques are more suitable for harder soil. The program will also look for other low cost drilling techniques and promote for their implementation. Therefore, the AGP II will support the promotion of low cost drilling technologies which include different types of drilling equipment such as portable manual and motorized drilling technologies/techniques. AGP II will also assist the promotion of these technologies/techniques through demonstration and designs a scaling up strategy.

(vii) Promotion of water-saving technologies: Water-saving technologies will enable frequent application of small amounts of water to crops’ root zone. They include drip, micro sprinkler, bubbler, mulching with plastic sheets and/or micro jet irrigation systems. In addition to reducing water use, these systems can preserve soil conditions, increase productivity per unit use of land and water and improve product quality.

Where appropriate, demonstrations in drilling, storage, lifting, water application technologies (through manual flexible hoses, drip, or sprinklers) will be provided in subprogram areas, and the program will facilitate the procurement and installation of these irrigation equipment, as requested by households within the subprogram command area. While the beneficiaries themselves are expected to make maximum contributions towards these activities, the AGP phase II will finance demonstration of technologies, purchases of industrial materials required to build water storage, water lifting units, conveyance facilities, and irrigation water application equipment, as well as skilled labor, and will provide start-up spare parts and hand tools that are important for operation and management (O&M).

In addition, the AGP II will have a critical role to support in creating an enabling environment for technology development and uptake for Micro & Household Irrigation Technologies (MHITs). The program would support to develop policies and regulations that influence irrigation equipment manufacture, importation, promotion and servicing. AGP II will also focus on technical support (through training and awareness creation programs) to private and public sector institutions to promote domestic manufacturing of these technologies. It will also assist in testing and demonstrating equipment at universities, research and demonstration centers.

Except some interventions, the planning and implementation of MHIS will be decentralized to woredas. The decentralization of decision making to woredas worked effectively under AGP (AGP I). The subprograms identified will be in accordance with the woreda development plans and with the actual needs of the local people. Mechanisms will be in place for local community involvement and representations such as establishment of Irrigation Water User Associations who actively involved in program identification and selection, design and establishment/construction.

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Due to experience gained in AGP I, currently, woredas are in a position at least to identify their needs and program sites. Therefore, this good practice will be strengthened in AGP II.

3.1.3 Establishment of New16 Small-scale Irrigation Systems

This intervention seeks to increase irrigated agriculture by establishing new smallholder irrigation systems (with command area greater than or equal to 20ha) from surface and groundwater water sources and improving and encouraging the use of agricultural water management practices that improve the return to irrigation infrastructure investments. The main objective of this intervention is to expand area of irrigated agriculture for smallholder farmers by establishing new SSI systems (with command area greater than or equal to 20ha) to enhance SHFs production and productivity.

Under this intervention it is planned to design and construct 125 new SSI subprograms with irrigation command area of 20,000ha of land. Design documents will be prepared, reviewed, certified and awarded to various local contractors for construction. The following activities are envisaged:

(i) Conduct surface water availability assessment to identify indicative irrigation development potential which clearly indicates the SSI potential of each woreda;

(ii) Preparation of design and construction quality assurance and control guidelines;(iii) Establishment of new gravity diversion SSI systems from surface water sources; (iv) Pump irrigation from surface water sources; (v) Establishment of new pump irrigation systems from ground water sources (depth less

than or equal to 100m); and (vi) Establishment of small dams (dam height less than 15m) of gravity SSI systems.

Access roads will be built, where needed, for the construction and efficient operation of irrigation systems. Most newly developed larger SSI systems or clustered MHI systems will require the construction of access roads, which will be conforming to the URAP standard for the larger systems. In areas where rehabilitation/extension of the irrigation systems will be undertaken, only minor improvement of the existing access roads will be done.

3.1.4 Capacity Development

The details of this intervention will be worked out based on needs assessment result done at the beginning of the Program period. The intervention includes the following activities:

(i) Physical Capacity Development

Shortage of office and field survey and design equipment and other facilities including shortage of vehicles greatly hamper planning and implementation of SSI subprograms. Therefore, the AGP II will finance the procurement of these facilities. The intervention will provide support for the strengthening of regional, zonal and woreda offices (Bureau of Water Resources/Irrigation Development Authority). The expected out puts of the intervention are enhanced planning, design and construction management capacity enhanced and mobility improved. The intervention will include to

– Purchase and provide Office facilities and field equipment; 16Converting unused land and rain fed fields into irrigated ones

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– Purchase and provide four wheel vehicles;– Purchase and provide technical books;– Prepare, print and distribute technical training materials on irrigation design and

management;

(ii) Human Resources Capacity Development

Though the country has had considerable experience in the planning, design, construction and operation of irrigation systems and has built up a cadre of technical staffs; as compared to current need, there are very few engineers working on SSI development both at federal, regional levels; while many of them do not have the required knowledge and skill to perform design and construction management as per the standard. Therefore, training will be useful at all levels including the smallholder farmers in broadening the irrigation sub-sector's capabilities in planning, design and construction management, in introducing new ideas from other countries, in codifying existing procedures and in upgrading the standard of operation and maintenance for SSI systems. In addition, the program will support review meetings, short term training programs to raise the knowledge and skill of technicians at all levels specialized in SSI development. It will also include support to short-term overseas study tours on the planning, design, construction management, and management of irrigation systems for federal and regional experts.

In addition, it is familiar that technical assistance will be useful at all levels in broadening the irrigation sub-sector's capabilities in planning, design and construction management. Thus the program will support technical assistance to improve the implementation capacity of implementing agencies at all levels specialized in SSI development. The technical assistance intervention will include engagement of national technical assistants, who will assist implementing agencies at all levels in the planning, engineering design, procurement, construction management and technical monitoring of SSI irrigation systems. This intervention will support:

– Conducting training need assessment;– Training of federal, regional and woreda level staff in Reconnaissance, Feasibility Study

and Detail Design, Construction Management/Contract Administration, etc;– Practical training and experience sharing tours to experts and farmers;– Training of consultants and contractors on procurement, contract management and design

work;– Technical Assistance

Sub-component 3.2: Integrated Crop and Water Management (ICWM)

Improving agricultural water management is critical for better agricultural productivity as water is the critical input for agricultural development. Though smallholders are knowledgeable about the importance of irrigated agriculture, they may lack the skills to effectively manage the resources for the productivity of their crops. Irrigation management practices followed in the country are inefficient. Crops are mainly irrigated by flooding entire fields, which reduces water use efficiency to below 30 percent. The water conveyance channels from source to the farms are mostly unlined causing seepage losses of up to 40-50 percent. There could also be occasional incidences of conflicts in the water use among the water users.

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For optimum results, soft components such as irrigated agriculture technical advisory services (improved agronomic practices and on-farm irrigation water management including training, demonstration, monitoring and evaluation, etc), input-output marketing, post-harvest technologies/techniques and credit services will need to be put as central component. However, in many irrigated areas, the agricultural extension service is grossly inadequate, both in staffing (numbers and skills) and technology delivery. In the country, there is an acute shortage of senior irrigated agriculture extension staff with specialist knowledge of water-soil-plant relationships and of water application techniques at field level. The training of farmers in agronomic practices and on-farm irrigation water management is especially neglected. Farmers are especially limited in knowledge on the water management aspect of irrigation—for example, how and when to water crops and how much water to use.

Most SSI systems have problems in on-farm irrigation water management, practicing agronomic practices, accessing modern inputs such as improved seeds, agro chemicals, fertilizers, mechanization and in marketing their produce. Their production is erratic, while their produce is of low quality and they generally lack access to viable markets. Water usage in the systems is wasteful due to lack of awareness, knowledge, skill, and accountability by individual farmers since they do not have adequate advisory service and do not pay for water; if any it is in bulk as a group paying same amounts regardless of the amount of water used by an individual.

As irrigation development aims at agricultural production, the engineering works should fit for this purpose. The objective is not the conveyance of water but the irrigation of crops. Thus, the engineering approaches used should be considered as part of a broader system (irrigated crop production) for which the designed scheme will be constructed to serve. Hence, understanding the fact that an improved and expanded irrigation system will be a key transformative input for agricultural growth, by enhancing irrigation water control and management, the AGP II is expected to facilitate complementary investment in improved seeds, modern inputs and agronomic practices, and market related investments which, together, will raise irrigated crop yields, cropping intensity and farm incomes. Therefore, improved control over the delivery of water to farmers should be supported by a strengthening in the provision of other complementary inputs and above all in the provision of technical training which will enable farmers to make more productive use of the water delivered.

In addition to physical (hardware) rehabilitation, improvement and/or modernization, improved performance of small scale systems is highly dependent on the capacity of irrigators to operate and manage the scheme (software) well, their business skills and ability to organize and govern themselves. Therefore, there is an urgent need for irrigated agriculture specialists to be expanded and for the development of training courses in which the principles and techniques of water management are taught in simplified form to the junior kebele irrigation extension staffs that provide the main point of contact with farmers. Trainings to farmers will be provided in such topics as input supply, crop variety and seed selection, soil preparation and fertility management, and on-farm water management. Other specific training programs may be conducted in crop husbandry (including pest and disease management), seed production and multiplication, and marketing.

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AGP II will also enhance the capacities of relevant institutions and Irrigation Water User Associations (IWUAs) in agricultural water management in conjunction with water infrastructure development for agriculture. Therefore, the program envisaged to introduce appropriate irrigated agriculture advisory/extension activities in each SSI subprogram area based on the needs of the farmers and the potential for crop diversification towards higher value crops. Irrigated agriculture advisory service support will be provided to improve farmers' knowledge and skill in irrigation water management, and access to inputs and markets, and enhanced production skills, in order to help farmers achieve their targets in cropping intensity and yields.

In the country, with few notable exceptions – which illustrate the potential for synergistic growth – irrigation systems so far have not improved productivity and crop diversification towards the higher-value crops. However, due to improved reliability of water supplied during the main rainy season through supplementary irrigation and the introduction of an incremental second season crop, the on-farm agricultural development measures under irrigation is expected to result in increased crop yields and cropping intensities. For that reason, the sub-component is devised to enhance the effective utilization of the irrigation system infrastructure development provided through the SSI Infrastructure Development sub-components with agricultural production activities. It would address the issue of insufficient integration between agriculture and irrigation water infrastructure development and management interventions in order to derive full benefits from investments in irrigation. So, the objective of the sub-component is to increase irrigated agriculture crop production, productivity per unit use of land and water, and profitability by improving agronomic practices, on-farm irrigation water management, promoting post-harvest technologies/techniques, promoting agro-processing and improving market access for smallholder farmers who use small-scale irrigation systems. Therefore, the main objective of this subcomponent is to improve irrigated agriculture water management to enhance productivity.

Integrated crop and water management will be implemented by the farmers themselves. To have the farmers adopt the new technology and to achieve their participation in operations and maintenance of the irrigation system, an intensive process of training and support need to be implemented over the period of the program. Overall, the sub-component will seek to provide a package of appropriate agronomic and water management practices and investment support as appropriate.

The major activities to be financed under this sub-component include: formation of irrigation water users associations; introduction of improved irrigated agriculture management (integrated crop and water management) and human resources capacity development. At national level, the Natural Resources Sector will coordinate and oversight the overall planning and implementation processes of the component activities. The subcomponent will be mainly implemented by regional BOA, BOWR/IDA and their respective woreda offices.

3.2

3.2.1 Formation of Irrigation Water Users Associations

The sharing of irrigation water supply infrastructure, such as reservoirs, weirs and canals, but also equipment such as pumps and pipelines, is often inevitable for a program to be practical and

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feasible. Such sharing requires that the group of farmers is organized to manage and maintain their infrastructure and equipment. A crucial element in the successful sharing of a water source is that the group of farmers be well organized and equipped (trained) to control, operate and maintain their infrastructure and manage their finances. Therefore, a clear institutional arrangement on irrigation is required to overcome problems related to irrigation water as a common property resource, to provide incentive to members, disincentive for free riding and shirking.

In Ethiopia, irrigators usually group together into formal and informal organizations such as Irrigation Water Users Associations (IWUAs), Irrigation Water Users Cooperatives (IWUCs), Irrigation Water Users Committees (IWUCs) and irrigation farmer groups/self-help groups. These organizations are established at scheme level for operation and management, but some of them engage in development of micro- and household irrigation systems.

Irrigation Water User Associations (IWUAs) are self-governed organizations of farmers who pool their financial, technical and human resources for the use and maintenance of a defined irrigation system.

In the country, Irrigation Water Users Association Proclamation was enacted by Parliament in 2014. This is a major milestone towards improving the performance of the irrigation sector in the country and will unlock the process of establishing strong Irrigation Water User Associations in the irrigation programs. The AGP II will work to introduce the new proclamation to program regions and woredas, and reorient the IWUAs according to the new proclamation.

The major challenge with IWUAs is their low capacity to undertake their mandates. The legal status of some of these organizations is also a problem as many of them are not registered. Thus, this intervention is of tremendous significance in improvement of irrigation service delivery through formation and strengthening of Irrigation Water User Associations (IWUAs), fostering and capacity building to enable their effective participation in the irrigation system management, and enhancing efficiency/productivity of water use on sustainable basis.

During the current AGP (AGP I), strengthening and establishing activities of IWUAs have been helping much in (i) improving water use and management by reducing conflicts so that taking cases to resort on the kebele administrative tribunal has reduced much; (ii) introducing high value crops; (iii) improving use of fertilizer; (iv) improving fee collection for O&M; and (v) improving overall management by advising to employ permanent staffs in few of the IWUAs. On the basis of this fact, the AGP II has set targets to establish 400 new and strengthen 100 existing IWUAs for the SSI subprograms; and training of 3500 IWUA committee members either in leadership or irrigation water and crop management;

In establishing the IWUAs, the AGP II will assist in (i) Formation and establishment of IWUAs; (ii) developing bye-laws; (iii) conducting general assembly and election of executive committee members; (iv) registration as legal entity; (v) training of committee members on leadership, conflict management, record keeping, financial management, etc; (vi) training of committee members on irrigation water scheduling (water allocation, water distribution, application methods); and (vii) training of members on irrigation water and irrigation crop management.

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Strengthening of IWUAs focuses mainly on supporting (i) financially and technically selected IWUAs to have improved storage, agro-processing and other market facilities; (ii) conducting general assembly meeting; (iii) re-establishment and re-organizing/restructuring including assisting in legalizing of the organizations/associations/cooperatives; (iv) re-orienting/improving the by-laws; (v) help the IWUA to frame rules and regulations in a participatory manner for water allocation and distribution; (vi) training of committee members on leadership, conflict management, record keeping, financial management, etc; (vii) training of committee members on irrigation water scheduling (water allocation, water distribution, application methods); (viii) awareness creation training to committee members about climate and environmental problems associated with irrigation; and (ix) training of members on irrigation water and irrigation crop management.

To enhance women participation in this component, AGP II will empower women by: (i) Enhancing their skills in irrigated farming; (ii) targeting women tailored activities for women such as hand-dug wells, lift pump schemes, etc; (iv) encourage women to involve in decision making bodies such as IWUAs; (iv) Providing facilities for clean water as part of the subprogram in order to reduce the time and labour women spend collecting water.

Overall AGP II will focus on the following major activities:– Supporting publicity, communication and awareness campaigns for the implementation

of the newly enacted legal framework for IWUAs;– Strengthening and formation of IWUAs as per the newly enacted IWUAs proclamation;– Developing IWUAs training guidelines;– Training of IWUA committee members and personnel in leadership, irrigation water

management, supply procurement and property management/warehousing, legal matters (dispute management, etc), personnel matters and record keeping/documentation, etc;

3.2.2 Introduction of Improved Irrigated Agriculture Management

Appropriate irrigated agriculture extension activities will be conducted in each functional SSI program area based on the needs of the IWUAs and the potential for crop diversification towards higher value crops. To achieve the on-farm irrigated crop development goals, irrigated agriculture management have to be strengthened. In AGP II it is envisaged to introduce a number of new on-farm irrigation water management and agronomic practices to diversity the cropping pattern and enhance productivity.

This intervention will also provide support for community or group level investments in productive infrastructure (including access and water-use related) assets and equipment that will serve to enhance efficient water use, crop production/productivity and/or marketability of the produce, and thus strengthen the income of smallholder farmers. Illustrative examples for this intervention will include support for:

– Introduction of improved on-farm irrigation water management practices/technologies including adoption/expansion of improved irrigation water application methods (sprinkler irrigation, drip irrigation) through on-farm demonstrations;

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– Introduction of site specific improved technologies of irrigation agronomic practices relevant to local needs and market opportunities through on-farm demonstrations;

– Introduction and establishment of community on-farm storage, small market yards or collection/sale centers and processing facilities for selected SSI systems;

– Irrigation performance assessment;

Thus, focus of this activity is improvement in agronomic practices, on-farm irrigation water use and management practices and this will be done through field level demonstrations for crop and on-farm water management, integrated crop management, IPM, etc. To realize this, under this intervention there will be a study on irrigated crop diversification and input use, which will have a number of implications on both crop productivity and irrigation water management. In general terms the demonstrations will focus on use of modern seeds and inputs, improved agronomic practices, improved storage and marketing facilities and improved on-farm irrigation water management practices in line with water availability.

Demonstration of new technologies is expected to result in crop diversification and crop husbandry (fruits, and vegetables), improved irrigation practices and better on-farm irrigation water management to improve water use efficiencies and reduce environmental degradation. For this purpose, demonstration plots would be developed in various parts of the program area to complement the direct assistance and to promote new technologies. However, the content of the demonstrations will be location-specific and demand-driven.

The irrigation performance assessment intervention would cover monitoring and Evaluation (M&E) of the SSI subprograms performances and impacts. M&E activities would provide continuous feedback on the programs performance and impact of its various components to the GOE and the financers, so that lessons could be documented and corrective actions could be undertaken in a timely manner. M&E activities would cover three set of activities: (a) monitoring of program implementation, checking and audit of program outputs and quality; (b) program performance and impact assessment; and (c) monitoring of environmental and social impact and mitigation plans etc. under this intervention, the envisaged activities are likely to cover, but not be limited to:

(i) evaluation of structural, hydraulic, managerial and agricultural performance of selected SSI systems;

(ii) the impact of the irrigation system development and improvements on irrigated land area; on-farm water use; cropping patterns and yields;

(iii) environment and social impacts assessment;

3.2.3 Human Resources Capacity Development

Experience has also shown that functional strengthening of the institutions involved in irrigated agriculture is essential for successful –irrigation water management and its sustainability. This requires adequate technical training, exposure visits to develop adequate knowledge base as part of routine business process. Training of trainers programs will be provided in such topics as input supply, crop variety and seed selection, soil preparation and fertility management, and on-farm water management. Other specific training programs may be conducted in crop husbandry (including pest and disease management), seed production and multiplication, and marketing.

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Fields of training to DAs provided under the Program will encompass on-farm irrigation water management practices and crop husbandry.

This intervention will support: (i) Conducting training need assessment (ii) Training of farmers, DAs, and SMSs at the woreda, zonal, regional, and federal levels

in improved irrigation water management and agronomic practices; (iii) Training of IWUA committees to enable their communities to effectively implement

improved methods of managing available water resource, settle disputes over water, and keep proper records;

(iv) Training of farmers on improved irrigation water management and agronomic practices;

(v) Practical training and experience sharing tours to experts and farmers;(vi) Training of consultants and contractors on procurement, contract management and

design work;

4 COMPONENT 4: AGRICULTURAL MARKETING AND VALUE CHAIN DEVELOPMENT

Component Overview

Transforming Ethiopian agriculture from its current subsistence state to market oriented production system forms the basis of the agricultural development strategy of the Government of Ethiopia (GoE). Smallholder farmers face the problem of low productivity combined with, among others, lack of market access, distorted market prices, inadequate market information, high transaction cost, shortage of working capital and underdeveloped and unreliable infrastructure. Many past interventions have too often paid little attention to agribusiness actors (input suppliers, intermediaries, buyers and processors), focusing too much on increasing farmer production and productivity.

These inadequacies observed in past interventions convinced the government and many donors to adopt different approaches towards a parallel effort to improve agricultural market conditions. As a result, some programs such as Improving Productivity and Market Success (IPMS) of Ethiopian farmers and the first phase of AGP have to some extent contributed to laying the foundation needed to implement specific interventions to improve agricultural market and marketing conditions. Notably, some farmer cooperatives and unions, through tailored support from the GoE and development partners, have improved their competitiveness by increasing scale of combined outputs, which has increased their bargaining power in market. Moreover, a holistic approach that takes into account all actors, including market actors in specific value chain, has been attempted in the past but the approach still requires strengthening in depth and breadth.

The overall objective of this component is to Support commercialization of Small Holder Farmers. The value Chain development will leverage on farm productivity improvements through investments in markets and agribusiness, as well as direct producer level interventions as

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needed. Thus, the component will have very tight linkage with the other AGP II components especially with component 1, component 2 and component 3 as they are directly engaged in the activities that enhances agricultural production and productivity with particular emphasis to VC commodities. The component will link its activities through provision of information required in the demand/market side on the production of the required volume and quality of VC commodities and give technical support during implementation of the various activities. Moreover the various crosscutting issues such as Gender, Nutrition and climate smart agriculture activities are mainstreamed in the pertinent sub component interventions implemented under the component.

The Agriculture marketing and value chain component has got four sub components; namely, (i) supporting agricultural input supply system, (ii) establishing and strengthening farmers’ organizations (iii) supporting agribusiness development, and (iv) supporting market infrastructure development and management and are explained in detail as under.

Sub Component 4.1 : Support Agricultural Input Supply System

Agricultural input supplies are critical for ensuring production. There is ample research proving that using the appropriate level of input could double yields, but input supply system currently lack a comprehensive and efficient distribution channel to capitalize on this opportunity. In transforming agriculture from subsistence to market oriented production system availability of improved inputs/technologies is very crucial. Such inputs, in addition to increasing agricultural production, will help farmers to access market through its effect in a larger volume of surpluses of quality products. The main objective of this sub component is to create access to sufficient quantity and quality of agricultural inputs through private sector, farmer groups, cooperatives and public institutions when required and developing and updating of guidelines related to input regulation and certification system. The sub component has the following three sub-sub components i) Support to promotion and distribution of improved agricultural inputs ii) Strengthen input regulation and certification iii) Human resource capacity building.

4

4.1

4.1.1 Support to Promotion and Distribution of Improved Agricultural Inputs

The government of Ethiopia has pursued a range of policies and investments to boost agricultural production and productivity. An important tool has been to increase the availability of improved seed, chemical fertilizers, and extension services for small-scale, resource-poor farmers. Agricultural input supplies are critical for ensuring production. Many research studies have

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proved that using appropriate level of inputs could double yields, but present input supply system lacks comprehensive and efficient distribution channel to capitalize on this opportunity. The facts show that only 15% of the seed requirement of farmers was met while only 43% of farmers were supplied with fertilizer in the 2011 Meher season17 with little improvement since then. The challenge on the market side is to improve output supply while providing incentives for the increased use and adaption. The GoE controls supply of seeds and fertilizer while agro chemicals are offered through the private suppliers and dealers with the exception of the migratory pest that are controlled by the government. This sub-sub component aims to strengthen the seed supply through introduction of alternative supply channels to the existing channels. The AGP II will support the implementation of the following interventions.

(i) Establishment and Strengthening of Community Based Crop and Forage Seed Production Groups (CBSPs)

Community Based Seed Production intervention aims to create self-sustaining CBSPs that fulfill current unmet seed demand (specifically on self-pollinating varieties), reach remote geographies, and effectively produce quality seed that environmentally benefit and adapts to the diverse agro-ecologies. This intervention addresses gaps and challenges of crops, which are often neglected by the formal sector, by following a decentralized approach. The AGP II will continue supporting the establishment and strengthening of community based crop and forage seed production of improved varieties and planting materials in response to local demand and suitability through designing community based seed production intervention based on previous experiences and integrating the best practices of Integrated Seed Sector Development (ISSD) and scale-up them to more geographical areas. Specific activities include:

– Establish new community seed producing group (at least 50% of the group members will be women farmers)

– Strengthening of Community Based crop and forage Seed Production group – Provide basic seeds of crops (nurseries will be established and improved seedlings/forage

genetic materials disseminated to smallholder male and female farmers)– Create strong linkage of the community seed producers with public and private seed

growers as well as primary cooperative and cooperative unions for market access through facilitating contract-based arrangements.

– Assist in the certification of the improved seed produced by the groups and cooperatives to ensure marketing.

The lead implementers of this intervention are MoA crop and livestock directorates and FCA in collaboration with RBoA and Regional Cooperative Promotion (RCP) institution.

(ii) Support Animal Input Supply and Distribution

Most of the improved animal breeds, artificial insemination service, animal health service and forage seed is supplied by the public sector, but the contribution of the private sector is growing. To meet the very ambitious production (milk, beef, sheep & goat meat, chicken meat and eggs) targets set in the Livestock Master Plan and GTP II, the predominantly subsistent mode of production of smallholder animal farmers will have to be transformed to one of greater market

17 FAO-WFP Crop Assessment, April 2012.

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orientation supported by reliable and consistent supply of essential inputs including formulated concentrate feeds, quality roughage (hay, fodder), improved breeding stock (of milk cows, meat and egg chickens), artificial insemination services and veterinary supplies. The specific activities will include:

– Provision of new parent stock for poultry multiplication centers: The demand of chicken meat and egg is steadily increasing in many parts of the country. Indigenous birds are the main source for meat & eggs in Ethiopia whereas meat and eggs from improved poultry farms are modest. A recent sectoral analysis indicated that if no technological investment being made in improving the livestock sector’s productivity, there will be a deficit of 1, 213 thousand tons of meat (42%) in 2028 and further suggests that successful investment in poultry improvement can result in an overall surplus of Chicken meat production by about 452 thousand tons over programmed consumption requirements18.

Therefore, there have been attempts to introduce improved egg type and dual purpose poultry parent stocks to government poultry multiplication centers. These improved parent stocks optimistically serve for about two to three years and should be replaced by new flocks. Thus, the AGP II will support the purchase of 30,000 new day old chicks of parent flocks of dual purpose from the EIAR through covering the production cost of the parental stocks and deliver to the regional multiplication centers only for one time to replace the old stock.

Exit strategy: - For the sustainability the program will conduct a study on the pros and cons of the attempts being made so far in the transfer of the business to private sector. The complete transfer 2 poultry multiplication center to the private sector by the Oromiya regional state has failed as the individuals who bought the multiplication center have completely stopped multiplication of day old chicks and changed the centers to other business. However, the approach used by the Tigray regional state of changing the management of the poultry multiplication center through Public Private Partnership (PPP) has shown good progress. Thus, as an exit strategy, the program will conduct study on both approach used by the Oromiya and Tigray regional states and implement in the other regions based on the output of the study.

– Establishment and strengthening liquid nitrogen production plants: To improve artificial insemination service delivery and access to improved livestock breed for enhanced productivity and lower GHG emission, there has to be a focus on securing semen supply. Consistent production of liquid nitrogen is paramount for the preservation of semen. It is planned to purchase four new liquid nitrogen machines for the newly established semen collection centers in AGP I along with Provision of 5 refrigerated trucks for semen distribution. In addition, the problems of the existing liquid nitrogen production plants will be studied and strengthened based on the result of the study. The intervention will be technically assisted/ coordinated by the NAIC and the overall implementation will be done by the Regional Livestock Agencies.

18Livestock Master Plan (LMP ) 2014

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(iii) Establishing IT Based Input Tracking System

The objective of the Input Tracking System (ITS) is to insure that agricultural inputs, fertilizer & certified seeds, reach the farmers on-time before the planting season as there is a delay in input distribution in distant areas of the country. The ITS will track the movement of inputs across the distribution chain, centralize the data, and create clear visibility at the Federal, Regional, Zone, Woreda and Seed Producers level. Any bottlenecks and distribution delays are identified early in the process to allow ample time to course correct any delays, and ultimately insure that agricultural inputs reach the male and female farmers on-time before the planting season. Additionally, this system can assist experts and pertinent stakeholders to develop regular input reports and plan for the upcoming season based on the information and results generated from this system.

Input tracking has been implemented by ATA as part of wheat value chain Project in 2012 in selected woredas of Oromiya. Based on the lessons learned during this intervention, a standalone Input Tracking System has been piloted in thirty-three woredas in Oromiya and three woredas in SNNPR. This system was designed to track seed that was distributed in both Direct and Non-Direct seed marketing modalities.  To date, approximately 600 primary cooperatives have registered into the system, allowing system users, dependent on their access to assess woreda and PC level input data (requested, allocated, delivered, and sold to farmer amounts). ATA has planned to scale up the system in 147 ATA Value Chain woredas in the four regions (Amhara, Oromiya, Tigray, and SNNP) in 2015. Similarly, AGP II will support the establishment of IT based input trucking system in 75 AGP target woredas outside the 147 ATA designated Value Chain woredas planned for the 2015 ITS expansion plan.

The lead implementer of this intervention will be the input marketing directorate of the MoA in collaboration with the regional BoA. The activities associated with the establishment of the ITs based Input Tracking System are: -

– Regional assessment and stakeholder consultation – Update system forms and dashboards; – Procure and distribute mobile devices; – Register new woredas, institutions, and users. – Provide online/offline support

(iv)Support to Direct Seed Marketing (DSM)

To ensure sustainable access of farmers to improved agricultural inputs, a wide range of inefficiencies and bottlenecks that currently exist in the country’s seed distribution system should be addressed. These current challenges include limited technical and infrastructural capacity of cooperatives to market seed effectively, limited alternatives for farmers to access seed beyond cooperatives, and limited inspection capacity during seed distribution. A modality whereby seed producers directly market the seed they produce through well-trained and licensed distribution agents can be an effective mechanism to overcome these obstacles and improve seed marketing and distribution efforts in the country.

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DSM aims to establish a market-based seed distribution system that enables all qualified seed producers to directly market seed to farmers through multiple outlets in a competitive manner. DSM has been proved to shorten the supply chain and helps improve choice, timeliness, and accountability of operators. Moreover, real-time management of inventory by producers will also ensure supply meets effective demand. Target is to scale-out DSM throughout the country as a reformed seed marketing and distribution system. The activities will be implemented by the Input Marketing Directorate of the MoA in collaboration with the RBoA. AGP II will support in the following activities:

– Refine the design of DSM AGP II based on performance of previous pilots and implement in other AGP woredas

– Human resource Capacity building- train certified input marketing agents on technical and business skills; train government officials and experts at all levels on the basics of DSM AGP II and train seed producers on seed business management

– Facilitation and implementation support- facilitate identification of competent input marketing agents (both cooperative and private agents, CBSP groups) through outreach campaigns; and facilitate signing of contract-based arrangements between input suppliers and certified marketing agents

4.1.2 Strengthen input /output Regulation and Certification

One of the important functions of GoE’s, in addition to provision of inputs, has been to register and control the available inputs (whether imported or produced domestically). In addition to the regulatory role, the GoE monitors the quality of these inputs once they are on the market. Government regulation is sometimes justified as this screening and testing function will direct farmers towards the most appropriate inputs. With a rapidly changing agricultural situation, it is important that the regulation of inputs be reviewed and updated. Based on these facts, the AGP II will support the input /output regulation and certification system through developing, reviewing and updating of various regulations with regard to agricultural inputs with due emphasis being given to the promotion of environmentally friendly inputs.The AGP II will support the following activities:-

(i) Studies to update input/output regulation and certification systems

Regulatory systems often mandate and monitor the quality of inputs that are sold, to ensure they are unadulterated and correctly labeled. With a rapidly changing agricultural situation it is more important that the input/output regulation and certification systems be reviewed and updated. Based on these facts the AGP II will support the input/output regulation and certification systems through reviewing, updating and development of various regulations with regard to agricultural inputs with due emphasis being given to the promotion of non polluting; environmentally friendly inputs. The lead implementer of the activities will be crop and livestock regulatory directorates of MoA.

(ii) Development of regulatory guidelines for agricultural mechanization technology imports, manufacturing and distribution.

The GoE’s involvement in the provision of inputs has been accompanied by a regulatory role that registers and controls the inputs that are available (whether imported or produced domestically) and monitors the quality of those products once they are on the market. However,

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there is no regulatory guideline developed for the importing, manufacturing and distribution of agricultural machineries. Based on this fact the AGP II will support development of regulatory guidelines for agricultural mechanization technology imports, manufacturing and distribution. The responsible institution for the implementation of the intervention will be the agricultural mechanization directorate under MoA.

(iii) Preparation of residue monitoring plan for honey

Residue monitoring plan (RMP) is a prerequisite for developing and developed countries interested to export animal products and crops to European Union (EU) member states. Honey is the only animal product that entered into the EU market from Ethiopian animal products. The country has been included in the Third Country Listing in accordance with Council Directive 96/23/EC since 2008. The plan shall be submitted by countries proving that they have guarantee measures in place to monitor residues of veterinary drugs, pesticides and contaminants in animal products. The RMP is updated yearly with the inclusion of honey sample test (analysis) results carried out by an accredited laboratory.

The major tasks in the RMP are producing the plan document, collecting honey samples as per the official sampling procedures of EU Directive from designated exporter’s collection sites, coding the samples, sampling level and frequency, addressing the samples to an accredited laboratory for analysis and incorporating the test result template to the RMP. A consultant will be hired to manage the aforementioned activities. AGP II is proposed to cover costs of preparation for the RMP and honey sample analysis. The MoA is the competent authority to liaison and the Ethiopian Apiculture Board and/ or the Ethiopian Honey & Beeswax Exporters Association will shoulder the responsibility of conducting this annual accreditation process.

4.1.3 Capacity Building

To effectively implement the activities mentioned under this sub component human resource capacity building will be given for the implementers of the activities. Thus, the following capacity building activities will be conducted with the assistance of AGP II implemented by the concerned directorates of the MoA, FCA in collaboration with ATA, RBoA and RCP institution.

– Training on seed production:-o Training of trainers will be given to regional SMS on improved crop and forage seed

production technology, and planting material multiplication. The Regional SMS will cascade the trainings to woreda SMSs, supervisors and site Development Agents to pass the technology to the seed producing farmers through theoretical and practical training being given at FTC.

o Assist the formal farmer’s organization, mainly cooperatives, involved in seed multiplication and distribution through provision of training and technical support as well as organizing the experience sharing visits during the various stages of seed production, storage and distribution.

– Training on input tracking: - update Input Tracking System training curriculum and conduct trainings, and host regional/zonal workshops.

Sub-component 4.2: Support to Farmers’ Organizations

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The objective of this sub component is to boost collective bargaining power of the small farmers as well as efficient and sustainable service delivery.

4

4.1

4.1.1 Establishing and Strengthening of Common Interest Group (CIGs)

Support will be provided to promote and build capacity of new grassroots organizations of farming communities in targeted kebeles. More specifically, the AGP will support formation of farmer groups with a common interest (CIGs) based on the guideline developed by AGP, and will be engaged on business activities such as production of the same commodity (cereals, oil crops, legumes, vegetables, milk, beekeeping, cattle fattening, honey processing, and seed), water use, marketing, credit, and so on. The CIGs will be supported by the respective directorates and process owners in the preparation of viable business plan and technical support in the execution of their selected business activity. Moreover, efforts will be made to link the CIGs with MFI and facilitate market linkages through linking them to agricultural output markets.

Women and youth will be supported to either form their own groups or join another group of their choice. Based on the experience of organizing farmer groups and lessons learnt in AGP I, the second phase of the AGP II will establish 3236 CIGs (2 CIGs per new kebeles) on different agri-business activities. Therefore, during the AGP II period, a total of 11408 CIGs including the formerly established CIGs will be strengthened. The program would support business plan preparation and implementation, including through the provision of matching grants to qualifying groups based on the CIG establishment manuals.

These groups will be the key instruments for social mobilization and community-level institution building. Exchange visits among groups having common interests will be supported to promote group-to-group and farmer-to-farmer learning. By working in groups, farmers will have improved access to public services and markets to move towards a market oriented farming operations. Through, strengthening their groups with all the necessary requirements the CIGs will be transferred to primary cooperatives to undertake wider and stronger collective action on a range of services, including input and output marketing and financial services. Training for the women and youth CIGs on business development skill, financial planning, credit management, marketing post harvest handling, processing of agricultural commodities etc and exchange visits among groups having common interests to promote group-to-group learning will be conducted. The key implementing institutions of these interventions will be FCA and MoA in collaboration with the regional FCP institutions and RBoA.

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4.1.2 Establishing and strengthening of Primary farmers ‘cooperative and Cooperative Federation

a) Primary cooperatives:-The program will support the establishment of primary cooperatives in kebeles where they have not been established earlier and strengthen the one already established. To address the issue of sustainability of Common Interest Groups (CIGs) and their effects, the transition of CIGs into primary cooperatives is essential. Based on interests and willingness of its members, CIGs will be supported to establish primary cooperatives to undertake wider and stronger collective action on behalf of members and provide them with a range of services, including input and output marketing and financial services. They could form a multi-purpose or commodity-specific cooperative society or a primary rural savings and credit cooperative society (RUSACCO) to address important social, economic, or financial needs. AGP II will support the transformation of CIGs to primary cooperatives. This intervention will be implemented by FCA and MoA in collaboration with RCP institution and RBoA.

b) National cooperative Federation (NFC):- A national federation of agricultural cooperatives that provides marketing and advocacy at national and international levels and support services for lower-tier cooperatives is lacking in Ethiopia. Because of this, agricultural cooperative unions are incurring high transaction costs in search of both international and national markets in an uncoordinated manner. If a national federation of agricultural cooperatives is established, it will assemble the products from agricultural cooperative unions into larger lots to facilitate more efficient handling and more competitive sales, and then grade and ship these lots to national and international market. The national federation of agricultural cooperatives allows producers penetrate the international markets effectively and efficiently. The formation of this federation requires the support of development partners financially and technically. Hence, the AGP II will support establishment of national federation of agricultural marketing cooperative. The assistance will be provided to Federal Cooperative Agency to conduct (i) feasibility studies, (ii) preparing by laws and business plans; and (iii) conducting workshops and consultative meetings and finally to establish the national federation.

The federation is expected to provide marketing and advocacy at national and international levels and support services for respective lower-tier cooperatives. The facilitation of cooperative federations’ linkages with the international cooperative alliance will be assisted to improve access to financial support, new innovations and technologies, international best practices on cooperative development as well as experience sharing visits and trainings. In addition, the federation will help to facilitate capacity building, credit and other services for cooperatives in the country.

4.1.3 Improving access to financial services

Credit is a major determinant of the adoption and sustained use of agricultural productivity enhancing input. Limited access to input and output marketing credit, especially output marketing credit, is one of the major problems hindering the effective functioning of most cooperatives. Due to the limited availability of credit services, agricultural marketing

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cooperatives are not able to purchase outputs from all members in a timely and adequate manner. Therefore, to address this issue, the AGP II will support the following activities:

– Strengthen Rural Saving and Credit Cooperatives (RUSACCOs)– Linking RUSACCOs with Micro Finance Institutions (MFIs)– Linking primary cooperatives to MFIs – Support provision of financial management skill to primary cooperatives, RUSACCos,

MFIs and Cooperative Development Agents.The lead implementers of the activities mentioned under the sub component will be FCA and MoA in collaboration with the Regional Cooperative Promotion institutions and RBoA.

4.1.4 Capacity Development

(i) Human resource capacity development

(a) For cooperative unions

Many cooperative leaders have low capacity to manage and govern a well-functioning enterprise. Board members and managers especially are sometimes unprofessional, part-time, and/or unpaid. As a result, the government and NGOs currently provide most of the capacity building to the cooperatives sector. For agricultural cooperatives to be effective in agricultural commercialization of smallholder farmers, capacity-building support is fundamental. Hence, AGP II will support capacity-building efforts of the government through different methods.

Board of directors and union managers will be provided a systematic, well-designed and periodic capacity building trainings and experience sharing to improve their knowledge and skills to manage their cooperatives in a professional manner. The trainings will cover topics such as cooperative management, business development skill, financial planning, credit management, grain quality control, warehouse management, and gender awareness and mainstreaming. These trainings will enable the cooperatives to control the quality of agricultural commodities, to avoid considerable loss from grain spoilage, to manage account books, to prepare bankable business plans and to make appropriate marketing decisions.

Cooperatives will participate in local experience sharing visits focusing on value addition, financial and accounting management, warehouse management, internal control systems to learn best practices for improving their performance. The capacity building efforts is also expected to increase the membership size and capital of the cooperatives. The AGP II will support training need assessments, training modules preparation, as well as conduct and impact assessment of the trainings. It will also help to identify well performing agricultural cooperatives and cooperative promotion agencies and facilitate experience sharing visits to these selected cooperatives and cooperative promotion agencies. This capacity building will support the commercialization of smallholder farmers by having efficient and well functioning cooperatives. Training on gender mainstreaming will be given to the leadership and general assembly to include women in the leadership position in farmer’s organization (union and primary cooperatives). The human resource capacity development will be implemented by the FCA in collaboration with the RCP institutions.

(b) For Agricultural Cooperatives Support Services

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To improve the service delivery of the federal cooperatives agency and regional cooperative agencies the AGP II will support

– Capacity building through trainings and local exposure visits to improve the competency of the promoters, auditors, legal advisers, inspectors and marketing officers. These visits and trainings will focus on input and output marketing, cooperative management, business management, cooperative accounting, value addition, market linkage and the role of cooperative in the diversification and specialization of agricultural product.

– Provision of training on mainstreaming of gender ,nutrition and climate smart agriculture to the cooperative experts at various level to ensure shared objectives and responsibilities by experts for promoting gender equality in the sector and ensure nutrition and climate smart agriculture being mainstreamed in their activities.

– Organizing and Conducting of Consultative forums or platforms to discuss critical issues affecting the overall performance of agricultural cooperatives, cooperative promotion agencies as well as other development partners or NGOs supporting the cooperative sector. These forums will help to create strong linkages to avoid duplication efforts and encourage efficient resource use among public institutions, cooperatives, development partners and others stakeholders.

– Bi annual monitoring and evaluation review meeting is as one of the tools of monitoring and evaluation is conducted with implementers of the cooperative sub-component of AGP II. It allows effective and timely decision making by the implementers to improve progress towards the intended results AGP II. Hence, AGP II will facilitate bi annual monitoring and evaluation review meeting through the allocation of the necessary resources for the review meeting with stakeholders.

Sub-component 4.3: Support Agribusiness Development

Achieving competitiveness requires cooperation and incentives for cooperation among value chain actors from the top to bottom of the chain because of the systemic nature of value chains. To illustrate, exporters at the top of the chain cannot be competitive without sufficient product volume and quality, which - in most instances - must be sourced from smallholders at the bottom of the chain. Moreover, benefits to one part of the chain are linked to improvements all along the chain. Based on this, AGP II support to markets and agribusiness will be largely implemented at the national, regional and business level along the selected commodity value chains, with the objectives to strengthen the key selected value chains.

The activities are expected to result in an increase in the value and volume of (domestic or export) sales of the key (selected) value chain commodities targeted by the AGP II. The main objective of this sub-component is to increase small scale farmer market access, market efficiency, and value adding products and services along selected VCs. Overall, the sub-component will employ a market-led approach; i.e., a “value chain” methodology designed to identify and address the constraints and market opportunities of the key value chains and stakeholders. Moreover it stimulates market-led agro-enterprise and cooperative linkages with domestic, regional and international markets.

It is expected that most the activities under the sub component will be implemented by MoT , MoA and MoI, in collaboration with the regional subordinate institutions at regional and woreda

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level through a parallel financing mechanism funded by USAID. The final list of VC will be detailed in the PIM together with the description of the mechanisms and modalities for the implementation of the activities financed through the parallel mechanism funded by USAID. An indicative long list of possible VCs has been developed using similar criteria as that of AGP I listed below:-

– Importance of potential marketable production and nutritional benefits;– Number of farmers (women, men) involved in producing this commodity;– Capacity to increase household profitability (increased value addition potential and

revenue growth);– Potential to increase productivity/production in a sustainable manner (i.e., including

involvement of or potential for private sector) and reduce production risk;– Potential for labor absorption in the value chain;– Potential for direct and indirect positive effects in neighboring woredas.– Selection of nutrient dense crops and crops for local consumption as well as export.

The selection have also considered the following issues: a balance between commodities (e.g., a mix of rain fed and irrigated commodities, crops and livestock, nutritional benefits and cash commodities, or a mix of durable and perishable commodities); availability of input supply for the commodity; gender implications; ownership and commitment of the value chain actors’ (particularly private sector) to allocate time and resources. Thus, VC commodities selected for AGP II intervention are indicated in the following table.

Table 3: Selected Value chain ProductsProductCategory

Value chains

Cereals Teff, Wheat, Maize, Barley and SorghumPulses Chickpea and Fava BeanOil crops SesameStimulants CoffeeVegetables Tomato, Potato and OnionFruits Banana and MangoLivestock Dairy, Poultry, Live animals, Cattle Meat, Shoats Meat, Hides and Skins,

and Honey

4.2

4.2.1 Support to the Coordination of Value Chain Actors

To realize the broader agribusiness development objective, the AGP II would focus on strengthening the VC actors, which would result in an increase of value and volume of selected VC commodities. To this effect, many VC actors need to work together through the technical, financial and facilitation support of the program. To implement this activity, VC actors will be identified, common challenges, problems and their current capacity assessed. Thus based on the result of the assessment multiple stakeholders plat form including women VC actors will be established and strengthened at Federal level and regional level.

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These MSPs will be supported nationally and regionally as well as be sectoral in nature. The number of MSPs to be organized will be determined in accordance to the selected VC commodities. The MSP will aim to propose solutions to the challenges of marketing, value addition, facilitation and coordination. The basic objective of organizing MSP being sharing experiences and proposing solutions to the marketing and value addition issues, awareness creation, implementation, facilitation and coordination among VC actors. Activities to be conducted would include the following:

– Identification and selection of MSP actors – Collection of basic data about MSP actors – Preparation of the MSP programming, regulations and plan of work,– Establishment of national and regional MSP and facilitating committee – Implementation of the MSP meeting decisions related to contractual, delivery of quality

product and market information issues,– Follow up on decision of the MSP, and– Technical and managerial assistance to the committee

The lead implementers of the intervention will be MoT and FCA, and also involves other VC actors as collaborators.

4.2.2 Technical Support to Strengthen Competitive Agribusiness Actors

Agribusiness actors, which are competitive in the commodities identified, are to be supported in different value addition, market linkage, capacity building, trade shows & fair trade and other business management and financial linkage to different macro and micro finance institutions. One of the approaches to support the agribusiness actors is to support agri-business actors and association representing the VC in consideration. Based on this AGP II will support the following intervention areas to strengthen the agribusiness actors:-

(i) Facilitate Linkages Among Agribusiness Associations, Farmers, Cooperatives and Small Business Groups

Agribusiness associations are expected to improve its outreach and service by supporting the establishment of farmers and cooperatives at lower levels in different parts of the country, providing training of trainers with proper recognition using a standard manual and curriculum, and providing coaching and backstopping service to producers. To this end, the AGP II will support these associations through provision of technical support with concrete deliverables. Equal opportunities will be created for men and women producers, processors, traders and exporters in agribusiness with specially emphasis to women entrepreneurs through capacity building on developing viable business ideas and plans; and linking them to financial institutions. Specific activities include but are not limited to:

– facilitating harmonized sharing of responsibilities and internalization among agribusiness associations, and

– Facilitate linkages among agribusiness associations, male and female farmers, cooperatives and small business groups, women entrepreneurs including CIGs

– providing support and follow up with respect to joint planning and implementation for addressing critical sector issues

– Promote and strengthen existing women agribusiness association (women agribusiness cooperatives, women entrepreneurs etc)

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The above mentioned activities will be implemented by MoT, FCA, and ATA in collaboration with RBoT, RCP institution.

(ii) Support Quality, Traceability and Certification of Crops and Livestock

Absence of a well-defined and institutionalized product traceability and certification system is among the major systemic bottlenecks in the agricultural markets. On the other hand, traceability and product certification  have become common requirement in the international markets and if fulfilled guides farmers to produce products that meet agreed environmental, labor, and developmental standards and also helps them to get premium prices in local and international markets. In view of these facts, the AGP II aims to support establishment of a certification system that applies both for crop and livestock commodities that will help small scale farmers receive premium prices for their products, access local, regional and international markets and protect natural resources, support local economies. The support will mainly be directed to national and regional level certification center facilitation initially with strategic crops and livestock that will be scaled out later in the life of the AGP II. Specific activities include

– Provide technical support to value chain actors on implementing GAP, HACCP, ISO, and other food safety and quality standards

– Support establishment of national and/or regional centers for information and capacity-building on certification including premium certifications, e.g. organic, fair trade

– Provide technical support for identification of potential national/regional centers and the setting of standards, bench marks and operational guidelines that will serve the intended purpose

– Provide support for the facilitation of the centers to make them fully operational (equipping the facilities with necessary hard and soft ware)

– Support training for Skill development of the staff for the centers on quality, traceability and certification and international operational standards

– Provide support in identifying required certificates, establish standards procedures and regulations.

– Create Public awareness on economic and social benefits of commodity traceability and certification both in the local and international markets.

The Animal Health and Plant Health Directorates of the MoA are responsible for handling the execution of the various activities.

(iii) Support Through Innovation Competitive Grant and Demonstration Fund

The Innovation and Demonstration Funds are designed to unleash innovation and investment. Through these grant mechanisms, value chain intervention will have the flexibility to invest in opportunities as they arise and value chain actors best placed to address key value chain and other constraints. A key function of the funds will be to buy down the risks for value chain actors to innovate. Grants need to be invested to develop not distort markets and as such all recipients will be required to provide significant cost-sharing or matching funds prior to any sub-award.

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Innovation competitive grant: The focus of the innovation fund is to support enterprises (e.g., cooperatives, processors, traders, etc) in the selected value chains to improve the productivity and competitiveness of their enterprises through innovation, i.e., through additional (e.g., diversification of production, value adding activities, etc) and innovative activities taken by the enterprises. The support will focus primarily on technology acquisition and transfer, identification of new markets and their segments, and associated business support and services, as described below. Support, primarily on a cost-sharing basis, will be provided to private sector on a demand-driven basis, on the following broad categories:

– Technology acquisition and transfer, including agricultural, processing, and marketing equipment, productivity techniques, plant/animal improvements

– Support on identification of new markets and market segments, through improved access to information, research and studies

– Capacity building through BDS such as business management and development, best business practices, product promotion, and acquisition of technical and market information

Demonstration Fund: The focus of the demonstration fund is to support direct procurement of proven productivity enhancing technology/ies or prototypes of broad public value, with potential to address gaps in the value chains. ‘Demonstration” refers to a display of improved or new technologies or prototypes in production, transporting, storage and processing to stakeholders all along the value chain such as farmers, processors, traders and consumers. Such technologies may be identified by any private and public stakeholders, can be imported or locally produced, and demonstrated through public fora, such as farmer field days or trade fairs, or directly through a private entrepreneur (e.g., farmer, agribusiness). In cases where private entrepreneur is a beneficiary of the Demonstration Fund, they should provide two forms of contribution: (i) cost sharing; and (ii) written agreement that their premises may be used under AGP as a demonstration and training venue for the technology. The Fund may finance the following types of activities:

– Identification of technology– Demonstration of technology– Promotion

The above mentioned activities will be implemented by MoT, FCA, MoA, and ATA in collaboration with RBoT, RCP institution through the USAID Parallel fund.

(iv) Support Domestic Trade Fairs and Participation in International Trade Fairs and Promotional Campaigns

The focus of this activity will be cooperatives because they lack the necessary exposure to marketing requirements of local as well as international buyers. In addition, specific activities will be carried out to ensure visibility and facilitate necessary market linkages. These activities will include: (i) support to Domestic trade fair, and (ii) support to International trade fair and exhibition.

Sub-component 4.4 Support Market Infrastructure Development and Management

Lack of regulated market centers and marketing facilities for storage, drying, grading, and packaging makes the linkages between farmers and markets difficult. This has necessitated the

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establishment of a dynamic and vibrant marketing system with adequate supply chain infrastructure to keep pace with the changing agricultural production and growing marketable surplus. There is also increasing pressure on agriculture to respond to the challenges and opportunities that the global markets pose in the era of globalization and liberalization. The objective of the sub component is to improve market access through development of market infrastructure management. Therefore, the implementation of the activities under the subcomponent will strengthen implementation procedures to establish a regulated market centers through developing modernized management system.

4.3

4.3.1 Constructing and Modernized Management of Market Centers

Past efforts in development have mainly focused on the production side creating surpluses that at times could not be efficiently moved on to markets within the country or exported. Most local community markets lack basic facilities such as sheds, storage, lacking processing facilities, animal enclosures and proper water and sanitation facilities. Therefore, the overall objective of this sub-component is to address these problems through introducing modern regulated marketing system with the aim of setting up network between the primary markets and terminal markets to ensure reasonable gain to smallholder farmers.

The market centers and market shades structures are built to protect perishable foods in markets, reduce rural women problem of selling their produce in open market in the direct sun light, rain, and unhygienic environment. Interventions under this activity include construction of market shades, collection and processing centers for animal products as well as provision of technical support to promote effective use and management of market centers.

The market shades and collection centers for animal products will be used by organized women and youth groups as per the guideline for CIGs and will give the opportunity of engaging the CIGs in the processing of the animal products (milk and Honey) for value addition and increased income. In addition, the centers would be supported by rendering business oriented skill training to members on processing and packaging and management of packed products. This intervention will enhance promotion of technology that improves nutrition whilst adding economic value.

The detailed activities will be planning, conducting feasibility study, designing and constructing of the market infrastructures based on production potential and economic importance of agricultural commodities of the regions and woredas. Focus will be given to:

– Primary crop, fruit and vegetable products market centers, – Primary animal market centers, – Milk and honey collection and processing centers, – Road side market shades

4.3.2 Support construction and management of warehouses as well as storage, grading and packaging facilities.

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An inherent characteristic of agricultural production is that it is seasonal whilst demand is generally continuous throughout the year. Hence, there is a need for storage to allow for a smooth, and as far as possible, uninterrupted flow of products into the market. Currently, a low percentage of most grain production is marketed. For example, only about 11% of Ethiopian maize produced by smallholders is marketed, and of this only 10% is marketed through cooperatives. This volume is constrained by several factors, among others, lack of existing storage capacity, access to financing and lack of proper cleaning and processing equipment. There is clear rationality for the AGP II to intervene in the construction of warehouses in the target areas.

– Already high post harvest losses: Currently, post-harvest loss estimates range between 10-15%, with the majority occurring in on-farm storage. There is also clear evidence of cooperative level storage loss through rats, weevils and moisture. Moreover, there are potential quality losses due to build-up of Aflatoxin, as well as contamination when fertilizer and grains are stored together The constructing standard warehouse near farm gates, in high potential areas where products are relatively abundant, will reduce huge quantitative and nutritive losses, avoid distress sales and enhance economic status of the small farmers..

– Increase in volume of expected agricultural products and Inputs: - Farmers deliver their harvested grain to cooperatives, which store the outputs and sell in bulk to the market. Also cooperatives are the primary licensed channel for seeds and fertilizer for smallholder farmers, which they purchase in bulk and gradually sell to farmers, which also require adequate storage capacity. As per the PDO, with the intervention of AGP II, the volume of inputs used and outputs produced will be expected to boost which require proper functioning storage and marketing systems. Warehousing is an integral part of an efficient marketing system of agricultural produce, which is necessary prevent the loss arising out of unscientific storage and to equip the farmers with a convenient instrument of credit as well as to provide storage place in the production area at the time of surplus (harvesting) and to the consumption area during the lean period (off season). Interestingly, with the expected increases in production of the VC commodities due to the program intervention in the upcoming years, especially maize and wheat, the need for proper storage capacity is strongly required.

– Market failure: - In rural sector in general and in program target areas in particular, market for warehouse is either incomplete (where only the demand side is prevailing) or totally absent. Indeed, outside large cities such as regional capitals, there are few privately owned storage facilities available for rent but often they do not meet the required quality and capacity (only 200 to 500 tons) much lower than the capacity demanded by Farmers Cooperative Unions (> 6,000 tons). In some areas warehouse of large capacity with standard quality (6,000-10,000 tons) are available but owned either by Ethiopian Grain Trade Enterprise (EGTE) or the Ethiopian Commodity Exchange (ECEX), which are public and not available in the open market. The conclusion is that there is virtually no any private service provider for standard storage and warehouses in most of AGP woredas, where many primary cooperatives are concentrated on grain marketing. The private sectors have not been involved in such business that might be due

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to one or the combination of factors like lack of knowledge or information about the business, lack of capital, availability of better alternative businesses given their capacity and experience.

– Supporting farmers' cooperatives would be most efficient to reach the masses: Lack of proper storage system is the problem of almost all smallholders, but addressing all the framers is not practically feasible. On the other hand, supporting the farmers' cooperative in the financing the construction of warehouse could be most efficient to reach and address their storage and marketing problem of the majority of the farmers, and the answer to the question of equity issue.

– Cooperatives have limited capital: Currently the financial capacity of most cooperatives is very limited to invest on construction of stores. Unfortunately, the primary cooperatives don not have access to finance services (loans from banks) due to lack of collateral. Therefore, supporting construction of warehouses for the cooperatives will build up their capacity not only to collect and store agricultural inputs and products for proper marketing but also would serve them as collateral to access credit services from banks.

– Cost sharing: - The stores/warehouses are built on cost sharing basis to serve as demonstration for a number of unions and primary cooperatives existing in the AGP II implementation regions. The number of stores and warehouses planned to be constructed is 100 and 35 respectively.

– Exit strategy: Awareness creation and exposure visits will be organized for the remaining primary cooperatives and unions. Based on the lessons learned, they will be encouraged construct the same types of stores through creating access to credit from MFIs and RUSACOS. The program will also conduct awareness creation and promotion activities to attract private sectors to get involved in the sector by seeing the advantages and demand for the warehouse.

Based on the aforementioned justification and exit strategy, it is prudent at the moment to support cooperatives make investments in storage. Thus, it is planned to support 100 primary cooperatives out of 4264 (2.3%) and 35 cooperative unions out of 185 (18.9%) existing in AGP II regions through construction of warehouse on a cost sharing basis. The cost sharing will be 30% for cooperative unions and 10% for primary cooperatives.

In addition to the construction, the AGP II will support supply of packaging materials for demonstration of selected commodities to improve the quality and prices. Technical support will also be provided through developing guidelines to promote effective use and management of warehouse.

The construction of rural market infrastructure will involve both the public and private sectors. The FCA will be the lead institution in collaboration with MoA concerned directorates, RCP

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institutions and RBoA for the overall management of the construction. The construction works will be carried out by outsourcing to public enterprises or private contractors.

4.3.3 Development of Small Bridges

Experience shows that physical accessibility remains a key constraint for many rural people, often radically reducing their chances to improve their working and living conditions. Most of the rural population in Ethiopia travel using local paths, tracks and village roads that often involve crossing rivers. Such risky crossings result in loss of human life and livestock particularly during the rainy season. Footbridges are the top priority of the community as shown by the CLPP process conducted during the first phase of AGP. Thus, AGP II would consider footbridges as one of its key interventions to improve access to market.

The suspension footbridge of up to 150 m span length and reinforced concrete (RCC) footbridge up to a span of 30m are recommended. Although termed “footbridges”, these bridges may be required to carry livestock, pack animals as well as a range of simple vehicles such as bicycles, handcarts, motorcycles and an occasional light motorized vehicle such as a pick-up. Thus, under the AGP II support to construction of two standard widths is proposed:

– 1.2 m for pedestrians, bicycles, livestock, pack animals, wheelbarrows, handcarts, and motorcycles for suspension bridges, and

– 2.5m to also include occasional light motorized vehicles for RCC Bridge.

Since, knowledge and skill on suspension footbridges is not yet widely disseminated to local contractors it is only limited to HELVETAS (Swiss Association for international Co-operation); and hence the design and construction of this bridge will be managed by this NGO through Memorandum of Understanding (MoU). On top of the construction, the NGO will also take the responsibility of building the capacity of local contractors.

4.3.4 Support the Development of Market Information Systems

Small to medium-scale farmers face major challenges in meeting quality standards and properly managing go-to-market processes. Market information system enables SHFs to increase their income by allowing them to reduce dependency and costs associated with obtaining information from large traders and brokers. The market information system will be established to serve the VC activities for all types of crop and livestock commodities selected in the four major AGP II implementation regions. During the establishment of the system all necessary precaution measures will be taken not to overlap with other programs and to avoid duplication of activities. Specific activities include

– Establishing national and local market information systems which includes price forecasting, market actor information etc,

– Supporting diagnostic study of existing market information status, ownership, efficiency and gaps. This would also include review of capacities and gaps of institutions that are engaged in collection and dissemination of market information,

– Providing technical support to design, test and implement market information system that will serve all market actors particularly SHF so as to improve agricultural market information, analyses and forecasts at both national and international levels.

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– Promoting awareness on benefits and application of market information system including prices and trends, market outlets, demand situation, buyers preferences and timing

The lead implementers of this major activity will be MoA (FCA), MoT, in collaboration with Regional Cooperative Agency and RBoT. The IT directorate of the MoA will also assist in the technical matters during the establishment of the system.

5. COMPONENT 5: PROGRAM MANAGEMENT, MONITORING, EVALUATION AND LEARNING

Program management and coordination through a decentralized management system and ensuring integrated and coordinated implementation among all program components and between different stakeholders at the federal, regional, woreda and community level is essential.. The objective of this component, therefore, is to properly manage resources and implement the activities in accordance with the program objectives and procedures. The component has got 4 major sub components explained under.

Sub-component 5.1 Program Management and Institutional Arrangements

The purpose of AGP II management and institutional arrangement is to establish well-functioning arrangements and mechanisms, for program administration.

- Program Administrations

Similar to AGP I, AGP II will be implemented within the existing government structures (at Federal, Regional, woreda, and Kebeles) and institutional arrangement (Fig..). The existing institutional arrangement comprises AGP Steering Committee, AGP Technical Committee, and the AGP-Coordination Unit at federal and regional levels (AGP-CUs). Important activities include: program oversight, coordination, technical support and planning.

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Federal Steering

Committee (FSC)

Federal Technical Committee

(FTC)

Ministry of Agriculture (MoA)

Regional Bureaus of Agriculture

Woreda Agriculture Office

Regional Steering

Committees Regional Technical

Committees (RTC) Zonal Agricultural Office

Woreda SCs Woreda TCs

Kebele Office

Zonal Technical Committees

Figure 2: Organizational Arrangements for Implementing AGP II

A) Program Oversight

Steering Committee will be established at federal, regional and woreda levels. The federal Steering Committee (FSC) will be representatives of higher officials from Ministry of Agriculture (MoA), Ministry of Trade (MoT), Ministry of Industry (MOI), Ministry of Finance and Economic Development (MoFED), Regional Presidents (from each program regions), ATA and NARC as well as from Development Partners including the World Bank, EU, USAID, UNDP, the Netherlands, DFATD ,Spanish Cooperation and Italian Development Cooperation. The FSC would oversee overall program implementation. The AGP II Steering Committee will be chaired by the MoA or its representative. As was the case in AGP-I, the FSC will be responsible for the following tasks: (a) establishing policy guidelines and providing overall oversight of program implementation; b) review and approve annual work plans and annual implementation performance report to be prepared by the PCUs and overseeing the implementation of corrective actions.

The Regional Steering Committees (RSC) will be composed of heads of all relevant sectors, which include: Bureau of Agriculture (BoA), Regional Agriculture Research Institute (RARI), Women Affairs Office, Livestock Agency, Bureaus of Water Resources Development, Bureaus/Offices of Women’s Affairs, Bureaus of Cooperatives Promotion, participating MFIs, will continue to provide overall guidance and leadership for the program. The RSC would meet quarterly to review performance and provide the necessary guidance on program implementation, as well as endorsing the quarterly progress reports and annual plans at the

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beginning of each fiscal year. At the Zonal level, the Zonal Agriculture Office head or his representative will be member of the regional steering committee and the Zonal agriculture office will provide technical support on extension services and monitoring and evaluation of program progress to the woredas under its authority.The AGP Woreda Steering Committee (WSC) will be chaired by the Woreda Administrator and members will include; Heads of Woreda Office of Agriculture (WoA), the head will serve as secretary, Woreda Office off Finance and Economic Development (WOFED), and all line offices engaged in implementation of AGP II.

B) Program Coordination

The existing Agricultural Growth Coordination Units (AGP- CU) at all levels will continue for the day-to-day management of AGP-II including: (a) preparation of consolidated annual work plans and progress reports; (b) monitoring and, supervising overall implementation progress and evaluation of program impacts; (c) financial administration; and (d) procurement of goods and services. Because the workload of the program is increasing, the AGP-II CUs at federal and regional would be strengthened with manpower, equipment, vehicle, and training to address the expanded program scope and increased workload.

In the new regions, particularly in Benishangul Gumuz and Gambella, the program will establish two person units one Program Coordinator in Bureau of Agriculture and one Financial Person. However in Dire Dawa and Harari Regions, the program will have only one focal person responsible for technical matters, and the finance and procurement activities will be implemented by the existing government structure.

In the AGP I existing program woreda of the four regions (Oromiya, Amhara, SNNP and Tigray), the present focal person and finance officer will continue, but because of the increasing workload two additional staffs (one procurement officer and one irrigation expert) be recruited. In each newly included woredas (except Dire Dawa and Harari), the program will establish three experts (focal persons, finance officer and procurement officer) in the Office of Agriculture and Finance will full logistics and facilities.

At the Regional level, the Bureau of Agriculture (BoA) would lead the implementation of the AGP. BoA would consolidate approved annual work plans and implementation progress reports submitted by the Woredas. The annual plan and reports would then be submitted to the Federal AGP-CU. At the Zonal level, the Zonal Agriculture Office (ZAO) will coordinate the Woreda office under its responsibility and provide technical support. Every Zone administrator or his representative will evaluate Woreda performance quarterly by organizing quarterly review meeting with Woreda steering committee chair, secretary (Woreda agricultural office head) and AGP focal person.

Implementation of component II (research) will be the responsibility of EIAR and RARIs. Hence, the program will establish PCU having three persons at NARC (hosted in EIAR) that include a coordinator, a finance officer and a procurement officer which would fully serve both EIAR and the NARC. Each RARI of Oromiya, Amhara, SNNP, Tigray and Gambella regions will have one focal person, and the procurement officer at NARC will support the RARIs in all international purchases.

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Efforts will be made to establish effective partnership arrangements among program implementing institutions particularly for those organizations that are not part of MoA. To facilitate program implementation, memorandum of understanding will be prepared and signed between MoA and the IA . The MOU would outline activities to be carried out and explicitly specify associated budget required as well as agreements on operational modalities.

C) Technical support

The technical committee will continue as in AGP I. Committee members are senior expertise from relevant institutions (program implementers and donor organizations) and chaired by Federal AGP Coordinator. The technical committee is responsible for providing technical advice to program coordination unit on the quality of implementation reports and special studies, guidelines, documentation of best practices, and monitoring and evaluation of reports. It supports program coordination unit and focal person(s) in technical backstopping and supervision of lower levels, to coordinate program implementation within their respective institutions (including institutional capacity building as appropriate); and, to provide advice to steering committees on program activities; as well as to produce reports on implementation progress.

In AGP II staff from NARC/EIAR will be member of Federal Technical Committee. At the regional levels TC members will includes membership from relevant processes owners under BoARD, Livestock Agency (if separate from BoARD), RARIs, Bureaus of Water Resources Development, Bureaus/Offices of Women’s Affairs, Bureaus of Cooperatives Promotion, participating MFIs, and Soil Laboratories. The zonal program focal person will be member of regional technical committee and report on the progress of program activities to the regional technical committee). Woreda technical committee will also consist of representative experts from the woreda AGP II implementing organization and is chaired by Agriculture Office Head. The technical committee at federal, regional and Zonal level will meet once per month and the woreda levels technical committee will meet twice per month.

D) Program PlanningAt grass root level AGP II will adopt the demand-driven Community Level Participatory Planning (CLPP) approach of AGP I. In AGP-II a five year leading intervention plans will be prepared using CLPP and customized to Woreda strategic plan. In the successive years woreda level annual work plan will be extracted from main planning document and consolidated at Zonal, Regional and Federal levels.

Implementing Agencies will then prepare their annual work plans for each budget year and send it to AGP II FCU for review and consolidation. AGP-II CU will prepare a consolidated budget and submit to steering committee for approval. Fund transfers by AGP-II CU will be based on approved work plan and budget. At federal level, program-implementing organizations will prepare consolidated activity plan together with budget and send it to the AGP-II CU. As regards to Component II, RARIs will send their annual plan and budget to NARC- PCU and RPCU. RPCU consolidate the regional plan and budget including component II and pass it to AGP-II CU.

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Sub-component 5.2 Monitoring, Evaluation and Learning (ME&L)

The program needs proper follow up, and evaluation to improve performance including learning and sharing. These will rely on the monitoring and evaluation system for AGP II. The monitoring and evaluation system mainly build on the strength and weaknesses of AGP I that was identified during its implementation. Thus, a learning environment that involves an effective ME & L system is an important element of the AGP II ME&L design.

The system will assess and document provision of input, achievement of outputs and process of implementation as agreed in the annual work plans and progress towards program outcomes, and intermediate results. The ME & L system will also analyze and interpret such data to evaluate impacts and outcomes, track progress, and monitor how well agreed-upon processes are being carried out. It also identify implementation gaps and challenges for proactive corrective actions by implementing agencies or for discussion by SCs at each level as well as to document and incorporate lessons learned into program implementation. ME &L information’s/data will be obtained through formal and informal feedbacks obtained from various program implementers (federal, regions, woredas, and kebeles) as well as from qualitative and quantitative surveys conducted related to AGP II outcome indicators.

In general, the ME&L at the coordination unit of AGP II will be characterized by providing strong support provided on progress monitoring and supervision to implementing agencies and greater use of data triangulation (use of different data source) and methods of analysis. Stronger emphasis will be also given to capacity building (training) of staff in charge of ME&L and supervision and data collection; and functional program management information systems. The objective of monitoring & evaluation and learning in AGP II is therefore to:

(i) support information gathering and analysis for the program management and other stakeholders on the quality of program implementation so as to facilitate appropriate and timely program decisions

(ii) institutionalize a learning mechanism and set up social accountability mechanism and(iii) assess the outcomes and impact of the program toward its objectives

Thus AGP II ME &L system will have the following major activities such as monitoring of inputs, implementation processes and outputs, and evaluation of outcome and impacts (including safe guards) and participatory ME and learning, and capacity building

5.2.1 Inputs, Outputs and outcomes Progress Monitoring

Program implementation performance monitoring includes tracking of inputs, outputs, process and outcomes. This will focus on keeping the system simple and interactive allowing regular reporting and learning by stakeholders at all levels. Monitoring will also include the regular assessment of AGP processes; e.g. assessment of effectiveness of trainings provided, mainstreaming of program cross cutting issues (gender, nutrition and climate smart agriculture), study of profitability and rates of return on investments by CIGs, technical audit of the CLPP, physical audit of small scale investments, environmental and social safeguard management, etc.

The Federal and Regional PCUs will take responsibility for program implementation monitoring and assessment of activities. PCUs will be responsible for regular monitoring of annual plan implementation and conduct assessment on selected indicators to measure achievement of

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Zone FP

Federal CU

Regional CU

WOA-FP

RARI

Keble DA

Regional AGP implementers

NARC

DPs

EIAR

MoA- PPD

Federal AGP implementers

MOFED

outputs and progress towards outcomes of the results framework as per agreed indicators. PCU will also (outsourced for TA) prepare annual program progress report by conducting annual base assessment on selected thematic areas for study while important this enable to complement AGP-II MTR finding. PMIS under AGP I will update to reflect the new design and hierarchy of objectives of AGP II and monitoring data and qualitative information will be entered into a Performance Management Information System. Program monitoring information system (PMIS) will serve as a major source of information for quarterly and annual reports submitted to steering committee at each implementation level. This can be done by program coordination and PCU will offer for technical assistance (TA) if desirable.

In AGP II reporting on the program implementation performance is mandatory and reports collected to stakeholders are required to meet the periodic reporting deadline and so that it could be consolidated at FCU and timely distributed. Program performance reports will be produced at four levels (federal; regional; Woreda and Keble) and collected on quarterly, bi-annual and annual base. This will permit to review implementation of activities against annual work plans and budgets, and ensure that corrective measures are quickly applied as shown in figure 3.

Figure 3: Report flow arrangement

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Woreda Implementers

5.2.2 Outcome and Impact Evaluation

There are a number of methods for assessing or evaluating outcome and impact. The very important point is to consider is the nature, extent and timing of the review and evaluation process through program design and developed result framework. In AGP II result evaluation survey will be conducted two times in the program life (MTR evaluation and terminal evaluation) and result will be measured as indicators of the Results Framework (see Annex I).For the program result evaluation the end of program evaluation of AGP I will serve as preliminary baseline. However, a more comprehensive baseline survey is planned for the first year of AGP II to capture new elements of the program design. This will be followed by a midterm survey and evaluation at the third year of program implementation and a terminal evaluation at end of program. The evaluations will be outsourced competitively to a competent consultancy firm, but the related surveys will be undertaken by the Central Statistics Agency as in AGP I. The midterm and terminal evaluations of AGP II will be carried out under the oversight of the FCU with technical support from the World Bank.

Program midterm and terminal evaluations will complement thematic assessments ( e.g., adoption and impact analysis of agricultural technologies promoted by the program, irrigation performance assessment, analysis of changes along selected value chains from the point of view of increased commercialization) that to be conducted on yearly base. Case studies (on selected FREGs, FTC, CIGs, micro irrigation and SSI) and qualitative studies will also conduct on changes in service delivery (extension, animal health, AI…..). In addition, assessment will be conducted focusing on cross cutting issues: gender (access to service & technologies), nutrition and climate smart agriculture.

The assessments will be agreed at the federal steering committee at the outset of each fiscal year. AGP II will also oversee gender evaluations to study the effectiveness of the program’s gender mainstreaming; and other complementary initiatives for scale up through the latter years of the program. Findings from thematic assessment (cross cutting issues) and case studies conducted will be incorporated into a Midterm Review Report (MTR) and an Implementation Completion Report (ICR) that will be compiled by the FCU at the third year of the program implementation and at the terminal evaluation of the program.

Result indicators are “quantitative and qualitative" facts or variables that provide a simple and reliable means to measure program achievement, to reflect the changes connected to program implementation, or to help assess the performance of a program. In other words, indicators are variables, which help to respond to the two fundamental questions to be raised in the program implementation: “How do we know success or achievement of program supported interventions?” and “Is the program moving towards achieving the desired outcomes? To respond to this fundamental question (For AGP-II) or track changes due to program implementation there are four major program development Objective (PDO) level indicators and

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another 15 intermediate (component level) and 24 sub component level indicators and the detail is depicted in Annex -1.

5.2.3 Participatory M&E Internal Learning

The purpose of promoting participatory monitoring and evaluation and learning is to ensure that learning through practices, experiences and best practices is improved and to ensure that beneficiaries learn from other beneficiaries’ experiences and best practices and to take advantage of the opportunities for learning from each other.

The results from participatory monitoring will potentially feed scaling up of best practices, allow adaptation of the program design as necessary, especially in early stages, also support a productive dialogue on findings and will empower them to take correctiveactions. Information collected from participatory M&E will be kept at FTCs and compile once a year by the Regional AGP M&E Officer.

Thus AGP II will promote participatory ME and L by organizing community learning platforms. Thus , farmers, in communities where AGP II is active, will discuss results achieved, progress on intended objectives and implementation problems and/or best practices using simple visual formats. This will include cross community monitoring (farmers monitor other farmers’ activities/sub-programs); using report finding, stocktaking, case studies (gender, nutrition, micro irrigations, FTC,…), and dissemination of M&E findings and other relevant thematic studies (e.g. irrigation sub-programs, impact on women, etc) undertaken within the program.

The participatory ME and L will be conducted continuously throughout the life of the program as important. To enhance this different monitoring and evaluation tools can be used; Participatory Impact Assessment (PIA), rapid appraisal methods (RAM) and community score card (CSC)…etc. Participatory impact assessment will look at particular interventions under the program and outside (for example other interventions with potential for scaling up) and enable to consider the cost/benefit analysis of program interventions (for example, cost-benefit analysis of irrigation sub-programs, CIG’s and other interventions areas of program). Rapid appraisal methods are quick, low-cost ways to gather the views and feedback of beneficiaries and other stakeholders to respond to decision-makers’ needs for information. Beneficiaries opinions will can be obtain from key informant interview, focus group discussion, community group interview, direct observation, and simple survey. These enable to have qualitative understanding of complex socio-economic changes. Community scorecard (CSCs) method is simple and user-friendly and helps to track inputs or expenditures; monitor quality of services/sub-programs; to generation of benchmark performance criteria; comparison of performance across facilities, Keble/Woreda; generating a direct feedback mechanism between providers and users; building local capacity; and strengthening community empowerment.

5.2.4 Capacity Development of the Program Coordination Unit

(i) Physical capacity development AGP II will provide support to program coordination units from federal to woreda level through purchase and furnishing of offices with equipment and facilities like computers, chairs and tables. The provision of computers and laptops will mainly focus to new regions and program

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woredas. In addition AGP II coordination units will be supported through provision of one vehicle each to federal and regional program coordination units. (ii) Human resource development

Human capacity development will stress on program coordination unit and cross cutting issues. This intervention will mainly focus on provision of TOT training to expertise at different level, production of training materials, organizing cross learning programs and lessons learned from implementation. To strengthen and facilitate implementation, performance monitoring and evaluation training will be provided to program monitoring and evaluation officers, coordinators and planning and monitoring officers of line implementing agencies on program planning (CLPP), financial management and procurement guideline, program MIS, result based M & E, methodologies and tools of M & E, internal learning, knowledge management & dissemination and communication and facilitation skills. These training can be provided by internal force or out sourced for technical assistance (TA). To make those training more practical and enhance internal learning experience sharing programs/study tours will be organized (locale and outside country) to M & E officers and Program coordinators

Sub-component 5.3 Capacity Development on Cross Cutting Issues

Human resource development will be provided support to cross cutting issues. It is well recognized that agricultural development programs have to consider nutrition, climate smart agriculture and gender in technology development, technology promotion and scaling up of best practices as well as in market and value chain development. Mainstreaming of gender, nutrition and climate smart practices within agriculture is a critical aspect in recognition of their substantial contribution to agriculture development. It is also imperative that climate, gender and nutrition sensitive programs have to be combined with capacity development training that promotes empowerment and behavioral changes.

In addition to the various specific capacity building activities of cross cutting issues being mainstreamed in all AGP II components, this intervention will support implementation of the following activities:

(i) Awareness creation training: In order to create common understanding on gender, nutrition and CSA there is a need to undertake awareness creation forums at all levels to officials of program implementing agencies as well as to decision makers at federal, regional and woreda level. The aim is to create favorable ground for mainstreaming of cross cutting issues in the respective components. Awareness creation in case of gender will focus on the root cause of the gender disparity to change the mindset and introduction of youth & women’s development change packages. Awareness creation training and development of printed material like leaflets, posters and documentary films are activities to be supported by AGP II.

(ii) Human Resource Development: Generally in Ethiopia knowledge and skill on gender, climate change and nutrition is limited which will affect implementation of activities pertinent to cross cutting issues. The objective of this activity, therefore, is to upgrade the skill of DAs, relevant SMS including men, women and youth farmers. This objective will be materialized through ToT training given by federal relevant experts and cascaded to regional, zonal, woreda and kebele level.

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(iii) Consultative Meeting: Consultative meeting will be organized and conducted at federal, regional, zonal and woreda levels. The objective of the consultative meeting is to assess how cross cutting issues are addressed in the planning and implementation of AGP II activities. The respective IAs; i.e. MoA-Women Affairs Directorate (WAD), Natural Resource Management and Extension Directorate at federal level and their counterpart institutions at regional, zonal and woreda level will handle implementation of this activity.

Sub-component 5.4 Capacity Development Support Facility

AGP II will adopt a more systematic approach to capacity development that reflects lessons learned from AGP-I and international best practice. An integrated approach addressing capacity issues at individual, organizational and enabling environment levels will be adopted and implemented by all AGP implementing agencies using an agreed four-stage19 model. This involves a shift away from the traditional emphasis on training and equipment purchase to a more systematic, comprehensive and holistic approach that is also being adopted by other flagship programs within the MoA.To support the application of this new approach across AGP-II, a designated capacity development support facility (CDSF) will be established. The Facility will largely focus on strengthening capacity at the individual and organizational levels. Capacity issues identified at the enabling environment level will be addressed by the entire program with support from the CDSF as required. The CDSF will have two main objectives:-

(i) Improve the quality of capacity development interventions within AGP-II: This will focus on ensuring adequate capacity is in place within the implementing agencies to design and deliver quality capacity development interventions planned under components 1-5.This will involve developing the skills, knowledge and attitudes of implementing agency staff to plan, design, deliver and follow up on capacity development interventions in their areas of specialization, as well as ensuring the systems and process are in place to enable this. Some specialized support in jointly selected key technical areas, other than capacity development, may be provided to strengthen program implementation.

(ii) Strengthen the institutional capacity of implementing agencies to manage AGP-II: This will focus on strengthening the capacity of AGP implementing agencies to manage and implement the program effectively. This will involve developing the skills, knowledge and attitudes of individuals on all aspects of program management, and ensuring implementing agencies have adequate systems and processes in place to fulfill their management functions. The facility will work in close collaboration with the AGP CU and all AGP implementing agencies and be responsive to the capacity-related needs of the program as they arise. The facility will cover costs such as professional capacity development and technical expertise at various levels, selected physical resources and operational costs.

19The four stages are i) consensus building; ii) capacity strengthening; iii) application and follow up; and iv) institutionalization.

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6. PROGRAM FINANCIAL MANAGEMENT AND PROCUREMENT

6.1 Financial Management

The objectives of the program’s financial management system are to: (i) ensure that funds are used only for their intended purposes in an efficient and economical way while implementing agreed activities; (ii) enable the preparation of accurate and timely financial reports; (iii) ensure that funds are properly managed and flow smoothly, rapidly, adequately, regularly and predictably to implementing agencies at all levels (federal, regional and Woreda as well as at Zones and others); (iv) enable program management to efficiently monitor program implementation; and (v) safeguard the program’s assets and resources. AGP II will have its own financial management manual which depicts the budgeting, accounting, internal control, fund flow, financial reporting and auditing aspects of the program.

Fund flow arrangements: - The program will have two major sources of funding. These are a pooled fund from IDA and other development partners; and parallel fund from USAID and UNDP. Fund flows arrangements for the pooled fund will follow the channel II fund flow arrangement of the government whereby funds from donor partners will directly flow to MoA. The Ministry will open a designated USD account at the National Bank of Ethiopia (NBE) for AGP. It will also open a local currency account from which it will transfer the required amount to the 8 implementing regions, as per their annual work plan and budget. Each region will transfer the required amount to their respective AGP Woredas. A memorandum of understanding will be signed with other entities whose services to AGP are vital. Thus, fund flows to implementing institutions will be through MoA; MoA to the seven RPCUs and one administrative council PC, EIAR, ATA & FCA. The RPCUs will transfer to Woreda Offices of Finance and Economic Development (WoFEDs). EIAR will also transfer the fund to RARIs. The program financial management arrangements will be coordinated and managed by the MoA AGP II CU with the support of BoA, EIAR, RARIs, WoFEDs and Regional PCUs as indicated in figure 3 below.

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IDA

Separate US$ Designated Account

at NBE

Pooled Birr account at MoA

BoAs

MDTF for AGP

DPs

WoFEDs

B oWs & RCPAs

Other DPs

RARI

FUND FLOW REPORTING

ZoA

Separate Foreign currency Account at

NBE

EIARFCA

Figure 4: Fund Flow Arrangement

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6.2 Procurement Arrangement

Procurement under the AGP II is to be financed with funds pooled by the IDA and procurement using funds from the MDTF administered by the Bank would be carried out in accordance with the World Bank’s "Guidelines: Procurement Under IBRD Loans and IDA Credits" (May 2004,revised October 2006, May 2010 and January 2011), "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" (May 2004, revised October 2006, May 2010 and January 2011), and the provisions stipulated in the Legal Agreement.Guidelines on Preventing and Combating Fraud and Corruption in Programs Financed by IBRD Loans and IDA Credits and Grants” dated October 15, 2006 and revised in January 2011, March 2013; introduction of Exceptions to National Competitive Bidding Procedures; and (v) the provisions stipulated in the Legal Agreements.

A Procurement Plan acceptable to the Bank covering at least the first eighteen months is prepared prior to Credit Negotiations. For each contract to be financed by the Credit, the different procurement methods or consultant selection methods, the need for prequalification, estimated costs, prior review requirements, and period will be agreed between the Borrower and WB task team in the Procurement Plan. The Procurement Plan would be updated at least annually or as required to reflect the actual program implementation needs and improvements in institutional capacity.A General Procurement Notice (GPN) will be prepared and published in United Nations Development Business (UNDB), on the Bank’s external website and in at least one national newspaper after the program is approved by the Bank Board, and/or before Program effectiveness. Specific Procurement Notices for all goods and works to be procured under International Competitive Bidding (ICB) and Expressions of Interest for all consulting services to cost the equivalent of USD 200,000 and above will be also be published (UNDB), Bank’s external website and the national press.

Most of the procurement activities under AGP including the supervision and contract administration as well as the rehabilitation and construction of small-scale irrigation schemes, footbridges, market centers, and other developmental works will be planned and executed at the regional and woreda level. Procurements at the regional level would generally involve contracts procured through NCB and Shopping procedures, whereas purchases at the woreda level would be through NCB, Shopping procedures and community purchases. The procurement under NCB at the regional levels would be carried out using National SBDs and in accordance with competitive regional procurement procedures that have been reviewed and found acceptable to the World Bank.

6.2.1 Applicable procurement methods

Selection of procurement methods shall be in accordance to the Bank’s guidelines stated in paragraph 6.2 above and shall be indicated and agreed for each of the procurement packages in the respective procurement plans of the program.

(i) Procurement of works: Works procured under this program would include: the construction of small-scale irrigation facilities; rehabilitation of communal land; treatment of gullies; farmland and homestead development; community-based roadside

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floodwater harvesting; other soil and water conservation measures including spring development, construction of footbridges; market infrastructure; and community nurseries (fruit, vegetable, coffee, tree seedlings). Works under the program would also include small-scale, labor-intensive civil works based on the standardized designs of the Community Based Watershed Management Guidelines, with direct participation by the beneficiary communities. The procurement will be done using the Bank’s SBDs for all ICB contracts and National SBD agreed with or satisfactory to the Bank for NCB contracts.

(ii) Procurement of goods: Goods and equipment to be procured under the AGP include: office furniture and office equipment, vehicles, motorbikes, bicycles, computer hardware and software, irrigation pumps, and other water-related equipment. At the woreda level, small items like farm tools and furniture shall be procured. A list of the items together with a cost estimate and a procurement plan will be completed at appraisal. Goods will be packaged whenever possible in packages valued higher than US$ 1,000,000 equivalent and tendered under ICB procedures described under Section 2 of the Procurement Guidelines. As noted, the Bank’s SBDs would be used for all ICB contracts. Contracts for goods procurement under the monetary value of US$ 1,000,000 equivalent may be tendered through NCB. Goods procurement contracts below the monetary threshold of US$ 100,000 equivalent may be procured through the Shopping procedure in accordance with paragraph 3.5 of the Procurement Guidelines. Procurement of goods other than through ICB would use the national procedures and SBDs as agreed with and deemed satisfactory to the World Bank. Direct contracting will be used where it is to the benefit of the program and in accordance with the provisions of paragraph 3.6 of the Bank’s Procurement Guidelines. Procurement by farmer groups and communities implementing the demand-driven activities of the Program may be conducted through community participation in procurement in accordance with paragraph 3.17 of the Procurement Guidelines. The detailed procedures and program components to be carried out by community participation shall be elaborated in the AGP PIM.

(iii) Procurement of non-consulting services: Depending on the nature of the services, procurement of non-consulting services, such as transport, will follow procurement procedures similar to those stipulated for the procurement of goods. NCB procedures acceptable to the Bank may be used for contracts valued at an estimated monetary amount of less than US$ 1,000,000 equivalent. Contracts valued at less than US$ 100,000 equivalent may be procured using Shopping procedures in accordance with the provisions of paragraph 3.5 of the Bank’s Procurement Guidelines or in accordance with established commercial practices of common use in Ethiopia acceptable to the Bank.

(iv)Selection of consultants: The program will make use of consultant services for training, technical assistance, and other capacity-building activities, farmer survey, M&E studies, studies to integrate land use system, financial management agency services, independent procurement audits and annual financial audits of program activities. Contracts above US$ 200,000 will be awarded through the use of the Quality and Cost-Based Selection method described under Sections 2 of the Consultant Guidelines. Consulting Services for audit and other contracts of a standard or routine nature may be procured under the Least

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Cost Selection method (LCS) described under Section 3.6 of the Consultants Guidelines. Consulting assignments costing less than US$ 100,000 may be procured through the Selection Based on Qualifications (CQS) method: Shortlists of consultants for services estimated to cost less than US$ 200,000 equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines. Single Source Selection may be used where it is to the benefit of the program in accordance with the provisions of paragraphs 3.9 or 5.4 of the Bank’s Consultant Guidelines. When consultants are recruited by private sector enterprises or autonomous commercial enterprises in the public sector financed in part or in full by IDA under the Program the beneficiary may follow well-established private sector or commercial practices that have been determined by the Bank to be acceptable to it in accordance with paragraph 3.14 of the Consultant Guidelines.

(v) Operating costs: Expenditures made for operational costs such as fuel and stationery, cost of operation and maintenance of equipment, communication charges, transportation costs, and travel allowances to carry out field supervision will follow Ethiopian Government practices that have been found acceptable to the Bank and included in the PIM.

(vi)Training and workshops: Training and workshops will be based on capacity-building needs. Venues for workshops and training as well as purchases of materials for training and workshops will be done on the basis of at least three quotations. However, at woredas’ and community level if three quotations could not be obtained for comparison, minutes shall be prepared by committee and shall be approved by the authorized person.

(vii) Margin of preference for domestic goods: In accordance with paragraphs 2.55 and 2.56 of the Procurement Guidelines, the Borrower may grant a margin of preference of 15 percent in the evaluation of bids under ICB procedures to bids offering certain goods produced in the Country of the Borrower, when compared to bids offering such goods produced elsewhere. The procurement procedures and SBDs to be used for each procurement method, as well as model contracts for works and goods procured, are presented in the AGP PIM.

6.2.2 Prior Review Threshold

The threshold for prior review, for International Competitive Bidding (ICB) including the maximum contract value for which the short list may comprise exclusively Ethiopian firms in the selection of consultants, are presented in the table below for purposes of guiding the preparation of the initial procurement plan. The procurement capacity of implementing agencies would be reviewed annually and the threshold will be revised according to the improvements or deterioration in the procurement capacity. Additionally, each procurement plan will indicate the number of contracts procured through National Competitive Bidding procedures or selection of consultants having a short list of exclusively Ethiopian firms that will be subject to prior review as part of risk mitigation.

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Table: Prior Review Threshold

CategoryPrior Review Threshold ( USD)

ICB Threshold ( USD)

National Short List Max value (USD)

Works ≥ 5,000,000 > 7,000,000 NA

Goods & non consulting services ≥ 500,000 >

1,000,000 NA

Consultants (firms) ≥ 200,000 NA

< 300,000 for engineering and works supervision and<200,000 for all other consultancy assignments

Consultants (Individuals) ≥ 100,000 NA NA

(i) National Competitive Bidding Procedures: National Competitive Bidding (NCB) shall follow the Open and Competitive Bidding procedure set forth in the Ethiopian Federal Government and Procurement and Property Administration Proclamation No. 649/2009 and Federal Public Procurement Directive issued by the Ministry of Finance and Economic Development dated June 10, 2010, provided, that such procedure shall be subject to the provisions of Section I and Paragraphs 3.3 and 3.4 of the “Guidelines for Procurement of Goods, Works, and Non-Consulting Services under IBRD Loans and IDA Credits & Grants by World Bank Borrowers” (March 2013) (the “Procurement Guidelines”) and the following additional provisions:

– The federal & regions standard bidding documents for procurement of goods and works acceptable to the Bank shall be used.

– If pre-qualification is used, the Association’s standard prequalification document shall be used;

– Mandatory registration in a Supplier List shall not be used to assess bidders’ qualifications. A foreign bidder shall not be required to register as a condition for submitting its bid and if recommended for contract award shall be given a reasonable opportunity to register with the reasonable cooperation of the Recipient, prior to contract signing. Invitations to bids shall be advertised in at least one newspaper of national circulation or the official gazette or on a widely used website or electronic portal with free national and international access.

– Bidders shall be given a minimum of thirty (30) days to submit bids from the date of availability of the bidding documents;

– All bidding for goods and works shall be carried out through a one-envelope procedure.

– Evaluation of bids shall be made in strict adherence to the evaluation criteria specified in

– The bidding documents. Evaluation criteria other than price shall be quantified in monetary terms. Merit points shall not be used, and no minimum point or percentage

– Value shall be assigned to the significance of price, in bid evaluation.

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– The results of evaluation and award of contract shall be made public. All bids shall not be rejected and the procurement process shall not be cancelled, a failure of bidding declared,

– New bids shall not be solicited, nor shall negotiated procurement in case of a failure of bidding be resorted to without the Bank’s prior written concurrence. Negotiations shall not be allowed except in the case of a lowest evaluated responsive bid which exceeds the

– Borrower’s updated cost estimate by a substantial margin, to try to obtain a satisfactory contract through a reduction in the scope of works/supply and reallocation of risk which can be reflected in a reduction in contract price.

– In accordance with para.1.16(e) of the Procurement Guidelines, each bidding document and contract financed out of the proceeds of the Financing shall provide that: (1) the bidders , suppliers, contractors and subcontractors, agents, personnel, consultants, service providers, or suppliers shall permit the Association, at its request, to inspect all accounts, records and comments relating to the bid submission and performance of the contract, and to have them audited by auditors appointed by the Association; and (2) Acts intended to materially impede the exercise of the Bank’s audit and inspection rights constitutes an obstructive practice as defined in paragraph 1.16 a (v) of the Procurement Guidelines.

(ii) SBDs for NCB: FPPA’s newly issued Standard Bidding Documents will be revised to take into account the above exceptions and the revised documents will be agreed with the Bank. The program’s procurement manual will include as an annex revised SBDs that will be applicable for Bank Financed program.

(iii) Implementation Support for Procurement: In addition to the prior review supervision to be carried out from the Bank’s Office, pre-JRIS field visit missions would incorporate procurement as part of each mission. Post procurement reviews will be carried out at a minimum once annually, and federal, regional and woreda implementing agencies’ shall provide all the required documentation and supports for the successful implementation of the supervision missions.

6.2.3 Institutional Setup for Procurement:

Procurement activities of the AGP II shall be carried out in a decentralized manner in all eight national regional states of Ethiopia. At the central level, MoA is the focal organization for implementation of the AGP. The national regional states which are the beneficiaries of the AGP include Amhara, Oromiya, SNNP, Tigray and the newly added ones Benishangul Gumuz, Harari, Dire Dawa and Gambella National Regional States. The BoAs, the Zonal and Woreda Agricultural Offices shall serve as the implementing organizations of AGP in the respective regions. The implementation of the AGP extends down to the kebele (community) level in the regional administrative structure. At federal level FCA is also the implementing agency of AGP and RCA’s in their respective regions of AGP. The newly added implementing agency at federal level is NARC and EIAR and at regional level, Regional RARI. CSA is specialized implementing agencies for AGP data collection (Baseline, midterm and final term of AGP). ATA can be considered as a service provider in policy area of agricultural technologies based on demand from MOA.

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At central level the Procurement and Property Administration Directorate within the MoA, is the one which is responsible for the execution of procurement activities of programs financed by donors, including the World Bank, as well as procurement activities carried out by the MoA through funds obtained from Government treasury. Donor-financed programs could have procurement personnel. At the regional level, procurement is carried out by the procurement case teams of sectoral bureaus. AGP procurement at the regional level shall be carried out by the procurement case teams of the respective regional implementers of the respective beneficiary regions. On the other hand, procurement under AGP at the woreda level shall be carried out through a pooled system by the Finance and Procurement case teams of the respective WOFEDs. At the regional and woreda level, procurement capacity is limited and the procurement units are characterized by a shortage and absence of qualified procurement staff. In view of this limitation, it is recommended that procurement-proficient staff be employed in each AGP regional CUs and other regional implementing agencies to carry out procurement activities under AGP and provide the necessary support to the woredas. Similarly at woreda level one procurement officer can be recruited at woredas where there are shortages of procurement staff in the procurement case team of WOFEDs if requested by regional AGP Steering Committee and approved by MOA.

Procurement from Cooperatives/Unions: Varies types of fertilizers for increasing Agricultural production will be used at FTCs’ for demonstration. However, fertilizers cannot be purchased through competitive market because throughout the country fertilizers are distributed through unions and cooperatives in fixed rate. Hence direct contracting from these institutions shall be allowed.

Use of government owned enterprises/institutions: Government owned enterprises/institutions shall participate in selected procurement process of AGP. Especially in some areas where there are shortages of private enterprises for feasibility study & design works and construction of SSI due to increased work volume. Moreover, Research and Higher institutions shall be allowed for the supply of improved seeds, mechanization technologies, trainings and other consultancy services in AGP regions where there are no qualified private consultants.

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List of Public Institutions/Enterprises

No Name of Institution/Enterprise Beneficiary Required

Service/Technology Reasons for its involvement

1 Water Works Design and Supervision Enterprises

Amhara, Oromia, SNNPR, Tigray

Feasibility study, detail design and construction supervision of small-scale irrigation programs

Market failure due to inadequate capacity of the private sector to respond as per the development demand of the sub-sector

2 Water Works Construction Enterprises

Amhara, Oromia, SNNPR, Tigray

Construction of Small-scale irrigation programs

Market failure due to inadequate capacity of the private sector to respond as per the development demand of the sub-sector

3 Seed Enterprises all regions Improved varieties of crop and forage seeds

Market failure due to in some cases sole source and in others inadequate capacity of the private sector to respond as per the development demand of the sub-sector

4 Agricultural Research Centers

All regions Basic crop seed, forage seed and improved animal breeds

Sole source

5 National Forestry Research Center

All regions Forest Seeds Mainly sole source, limited private sector in the business

6 Universities and Agricultural Colleges (ATVET)

Federal and all regions

Basic seeds, forage seeds, improved animal breeds, training and consultancy services

Market failure due to (i) sole source for seed and breed, and (ii) for training and other consultancy service inadequate capacity of the private sector to respond as per the development demand of the sub-sector

7 Agricultural Mechanization Centers

Federal and all regions

Pre- and post harvest technology prototypes

Mainly sole source, limited private sector in the business

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6.2.4 Procurement Plan

A Procurement Plan for program implementation, which provides the basis for the procurement methods and processing procurement activities. This plan has been agreed between the Borrower and the Program Team and is provided in Section F of this Annex. It will also be available in the program’s database and in the Bank’s external website. The Procurement Plan will be updated in agreement with the WB Program Team annually or as required to reflect the actual program implementation needs and improvements in institutional capacity.

The AGP, apart from institution building, involves the construction and rehabilitation of small-scale irrigation schemes, water and soil conservation measures, construction of footbridges, and the construction and rehabilitation of market centers. In terms of procurement, these activities involve consultancy services for the design and supervision of the construction and rehabilitation of small-scale irrigation schemes, footbridges, and market centers. They also involve the physical construction and rehabilitation of such facilities, which fall under works contracts.

Because the AGP is designed to be participatory, the particular small-scale irrigation schemes, construction of footbridge, and market centers to be rehabilitated or constructed will be identified in consultation with the beneficiary communities during program implementation. Hence the procurement plan at this stage only includes some contracts which are readily identified to be procured at the federal CU and at the regional level.

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Table: List of Goods Contract Packages to be procured during the initial 18 months of implementation

No Contract description

Estimated amount in USD

Procurement Method

Prior or post review

Bid closing-opening

Date contract is signing

1 156 vehicles 15,900,000 ICB Prior Feb.17,2017 April 2,20172 620 Motorbikes 2,480,000 ICB Prior April 25,2016 June 2, 2016

3 2981 Motorbikes 11,924,000 ICB Prior April 25,2016 June 2, 20164 8098 Pad cycles 1,619,600 Shopping post April 25,2016 June 2, 20165 IT equipments for IT

Centers1,527,600 ICB prior March 1,2016 May 2, 2016

6 Equipping Molecular Biology, central quality control, National & Regional silk worm seed multiplication Laboratories

261, 950 ICB Prior August 1, 2016 Nov. 7, 2016

7 Procurement of equipments for varies centers (queen rearing &fish hatchery)

636,300 NCB Post June 1,2016 July 17,2016

8 Field and office equipments

281,250 NCB Post March 14,2016 April 29, 2016

9 Equipping federal plant protection laboratory, seed analysis laboratories, plant health clinics and pesticide laboratories

7,612,961 ICB Prior January 9, 2017

March 3,2017

10 Agricultural machineries (tractors, planters, harvesters)

1,200,000 ICB Prior March 21, 2016

May 6,2016

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No Contract description

Estimated amount in USD

Procurement Method

Prior or post review

Bid closing-opening

Date contract is signing

11 Equipments for biotechnology, animal health research labs, fishery research labs, food science lab, animal nutrition lab, agronomy & physiology lab, seed lab, and mechanization labs.

6,600,000 ICB Prior Feb. 1,2017 March 24,2017

12 Forage seed and seed cleaning and grading equipments

1,250,000 ICB Prior May 6,2016 July 15,2016

13 Computational facilities for NARS (crop/climate modeling, GIS &Remote sensing)

500,000 NCB Post July 22,2016 Sep. 23,2016

14 Automated whether station and remote sensing facilities

450,000 NCB Post Aug. 15,2016 Oct. 21,2016

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Table: List of Works Contract Package to be procured during the initial 18 months of implementation

No Contract description

Estimated amount in USD

Procurement Method

Prior or post review

Bid closing-opening

Date contract is signing

Remark

1 Construction of 8 barns & sheds for cattle and goat multiplication centers

110,000 Shopping Post April 8,2016 May 31,2016

2 Establishing of 4 queen rearing centers 8,400 Shopping Post Nov.

14,2016 Dec. 7,2016

3 Establishing a fish hatchery center 229,500 NCB Post Sep.

5,2016 Oct. 28,2016

4 Establishing 4 Bio fertilizer centers 400,000 NCB Post May 1,

2017June 20, 2017

5Poultry house construction 250,000 NCB Post June

1,2016 Aug. 1, 2016

6 Construction of Nation silk worm seed production Laboratories

700,000 NCB Post February 1, 2016

April 29,2016

7 Construction of Regional silk worm seed production Laboratories

14,000 Shopping Post June 1, 2016

August 5,2016

8 Construction of crop and horticulture primary markets 4,750,000 NCB Post May

18,2016August 3,2016

9 Construction of Animal primary markets 2,700,000 NCB Post Feb.

15,2016 April 4,2014

10 Construction of Milk collection and processing centers

2,560,000 NCB Post July 4,2016 Sep. 12,2106

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No Contract description

Estimated amount in USD

Procurement Method

Prior or post review

Bid closing-opening

Date contract is signing

Remark

11 Construction of Honey collection and processing centers

120,000 Shopping Post March 7,2016 May 2,2016

12 Construction of market shades 800,000 NCB Post April

25,2016 July 4,2016

13Construction of Terminal market

24,000, 000 NCB Prior March 7,

2016 May 6,2016

Procurement by regions for each terminal market center

13Construction of Warehouses for unions 7,200,000 NCB Post June 4,

2016August 5, 2016

Procurement by regions for each warehouse

14Construction of Warehouses for primary coops 3,750,000 NCB Post April 2,

2016 June 4, 2016

Procurement by regions for each primary coops

15

Construction of Footbridge 1,550,000 Shopping Post September 5,2016

October 24, 2016

Procurement by woreda for each footbridge

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Table 4: List of consulting contracts to be procured during the initial 18 months of implementation

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No

Contract description

Estimated amount in USD

Selection Method

Prior or post review

ExpectedProposalsSubmissionDate

Comments Remark

1TA for National silk worm seed production

10,000 IC Post May 2,2016 June17, 2016

2Feasibility study and design for existing schemes

600,000 QCBS Post April 11, 2016 June 13, 2016

Separate procurement for each subprogram or some of subprograms in each region

3Feasibility study and design for new schemes

3,500,000 QCBS Post June 13,

2016 Aug. 15, 2016Separate procurement for each subprogram or some subprograms in each region

4

Preparation of design & construction quality assurance & control guide line

80,000 IC Post March 1,2016 May 2, 2016

5

Development of SSI rehabilitation and revitalization guideline

45,000 IC post January 1,2016 March 1,2016

6 TA for fish hatchery 20,000 IC Post March

14,2016 May 16,2016

7. ENVIRONMENTAL AND SOCIAL SAFEGUARDS

The second phase of Agricultural Growth Program (AGP-II) is assigned as EA Category “B” program given that significant adverse environmental and social impacts are not expected to occur due to the nature of the proposed sub-program activities (e.g., institutional development, introduction of agricultural productivity enhancement technologies, agri-business development, small-scale water management, small-scale rural infrastructure development and management and watershed management). To ensure that environmental and social safeguard issues are well addressed in the process of program implementation, the Environmental and Social Management Framework (ESMF) developed for AGP I will be used. In addition, Resettlement Policy Framework has already been drafted and be completed for use for this program. The ESMF outlines the relevant national and regional administrative and environmental policies, laws, proclamations, guidelines and procedures to be followed during the screening of sub-programs against any potential environmental and social impacts. The ESMF also outlines the World Bank environmental and social safeguards policies that are triggered by AGP-II. The World Bank Operational Policies that are triggered by the AGP-II subprograms are: Environmental Assessment (OP/BP 4.01, Pest Management (OP/BP 4.09), Indigenous People (OP/BP 4.10), and Physical Cultural Resources (OP/BP 4.11), and Involuntary Resettlement (OP/BP 4.12), and Safety of Dams (OP/BP 4.37). The Operational Policy on ‘Programs on International Waterways (OP/BP 4.50)’ is triggered by AGP at the program level.

The main objectives of this ESMF are to: a) establish clear procedures and methodologies for integrating environmental and social issues in planning, review, approval and implementation of subprograms to be financed under AGP-II; b) specify appropriate roles and responsibilities, and outline the necessary reporting procedures, for managing and monitoring environmental and social concerns related to AGP-II subprograms; c) determine the training, capacity building and technical assistance needed to successfully implement the provisions of the ESMF; d) establish the budget required to implement the ESMF requirements; and e) provide practical resources for implementing the ESMF. The ESMF includes measures for addressing broader environmental and social impacts as a result of AGP-II implementation. The ESMF sets out to establish the Environmental and Social Assessment (ESA) process to be undertaken for implementation of program activities in the proposed AGP-II when they are being identified and implemented.

In parallel to the ESMF prepared, separate Social Assessment (SA) and Resettlement Policy Framework (RPF) are prepared so as to identify and address the main social impacts and risks. Hence the ESMF will be implemented along with these social safeguard instruments. The main objectives of the SA include assessing socio-economic factors that require due consideration, identifying vulnerable and underserved groups that may be excluded from the program and affected by the program, assessing the potential social impacts, risks and the mitigation measures. Whereas, the main objectives of the RPF include: 1) establish the AGP-II resettlement and compensation principles and implementation arrangements; 2) describe the legal and institutional framework underlying Ethiopian approaches for resettlement, compensation and rehabilitation; 3) define the eligibility criteria for identification of program affected persons (PAPs) and entitlements; 4) describe the consultation procedures and participatory approaches involving PAPs and other key stakeholders; and 5) provide procedures for filing grievances and resolving disputes.

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ANNEX I: PROGAM TARGET WOREDAS

Regionn/Zone

Previous New Total

Total WoredaNo of Kebel Woreda

No of Keble

Woreda No of keble

1. Oromia

1.1 Arsi

L. Bililo 25 Tiyo 18Munesa 32 Hetosa 23Shirka 33Digalu and Tijo 23

Total 4 113 2 41 6 154

1.2 W/ArsiAdaba 22

GedebAsasa 25

Dodola 23Kofele 39

Total 3 84 1 4 109

1.3 Bale

Agarfa 20 Ginir 28Gasera 21Sinana 20

Total 3 61 1 28 4 89

1.4 E/Shewa

Ada'a 27 Dugda 36Gimbichu 33L.Chukala 18Lume 35

Total 4 113 1 36 5 149

1.5 N/Shewa

G. Jarso 17 Dera 33

Y.Gulale 17Were Jarso 25

H. Abote 20Total 3 54 2 58 5 112

1.6 W/Shewa

Ambo 34 Ejere 27Dendi 48T.Kutaye 31BakoTibe 28

Total 4 141 1 27 5 168

1.7 S/W/Shewa

Becho 19KersaMalima 31

Woliso 37Wenchi 23

Total 3 79 1 31 4 1101.8 Special Zone of Finine

Total Welmera 24 0 0 1 24

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Regionn/Zone

Previous New Total

Total WoredaNo of Kebel Woreda

No of Keble

Woreda No of keble

Surround.

1.9 I/Abba-Bora

Bedele 41AlgeSachi 19

Dedesa 26Gechi 32Chora 32

Total 4 131 1 19 5 150

1.10 JimmaGera 29

Omo Nada 39

Goma 36 Dedo 53L. Seka 38

Total 3 103 2 92 5 195

1.11 Horro- Guduru W

Guduru 31Jima Rare 18

Horo 22JerdegaJarte 21

J. Genete 12Total 3 65 2 39 5 104

1.12E/Wallaga

Diga 21GidaAyana 22

G. Gida 21W.Tuka 10BoneyaBoshe 10

Total 4 62 1 22 5 84

1.13KelemWellega

- Anfilo 23Gidami 28Jima Horo 21Seyo 26

Total 4 98 4 98

1 .14West Wellega

Lalo Asabi 27Genji 18Haru 25NoleKaba 24

Total 0 4 94 4 9439 1030 23 610 62 1640

2. Amhara2.1 North Gonder

Alefa 28 Dembia 45Takusa 25 Gonder 37

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Regionn/Zone

Previous New Total

Total WoredaNo of Kebel Woreda

No of Keble

Woreda No of keble

ZureaMetema 23 Wogera 41Quara 21Chilga 45

total 5 142 3 123 8 265

2.2 South Gonder

Dera29

Farta 36Andabet 22Estie 37

total 1 29 3 95 4 124

2.3 East Gojam

Debre Elias 20BasoLiben 23

Enemay 26DebayTelatgin 21

Dejen 22EnarjEnawga 27

Awabel 30total 4 98 3 71 7 169

2.4 West Gojam

Wemberma 21Dembecha 29

South Achefer 19

YilmanaDensa 34

Bure 24JbiTihinan 39North Achefer 27Bahir Dar ketema 11

total 6 141 2 63 8 204

2.5 North Shewa

EfrataGidim 20

MinjarShenkora 29

AntsokiaGemza 17

MoretnaJiru 17

Kewot 23

SiyaDebrnaWayu 13

TarmaBer 21BasoWorana 33

total 5 114 3 59 8 1732.6 Awi AnkeshaGu

agusa34 Guagusa

Shikudad

14

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Regionn/Zone

Previous New Total

Total WoredaNo of Kebel Woreda

No of Keble

Woreda No of keble

Zigem 15Dangla 29Guangua 18Jawi 21

total 5 117 1 14 6 1316 26 641 15 425 41 10663. SNNPR

3.1 Sidama

Wondo Genet 14

Arbegona 38

Melega 23 Bursa 28Gorche 213 58 2 66 5 124

3.2 GedioBule 30Gedeb 16

total 2 46 0 0 2 46

3.3 Silite

MirabAzerenet 19MisrakAzerenet 17

total 2 36 0 0 2 36

3.4 Dewaro

AlichoWoriro 24 Tocha 36Essera 29

total 2 53 1 36 3 89

3.5 DebubOmo

Debub Ari 49Benetsemaye 30

Semen Ari 33total 2 82 1 30 3 112

3.6 Kefa

Decha 58 Gimbo 31Chena 43 Gawata 30

Dita 24total 2 101 3 85 5 186

3.7 Gurage

EnemorEner 64 Gumer 18Endegagn 17 Geto 16Cheha 39

total 3 120 2 34 5 1543.8 B/maji Debub

Bench 25Semen Bench 31

Shey Bench

21 MehinitGoldia

29

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Regionn/Zone

Previous New Total

Total WoredaNo of Kebel Woreda

No of Keble

Woreda No of keble

Yeki 22total 3 68 2 60 5 128

3.9 Special Woreda

Konta (s/woreda) 43Basketo (s/woreda) 30Yem (s/woreda) 31

total 3 104 0 0 3 1043.10 Gemugofa

Melkoza 37total 1 37 0 0 1 37

Total 22 668 13 356 35 10244. Tigray

4.1 West

Tsegede 23Welqait 25KaftaHumera 21

4.2 N.West

TahtayAdiabo 11 LaelayAdi

abo 22

AsgedeTsimbla 12 Tselemti 22

TahtayKoraro 13

MedebayZana 18

total 2 23 4 75 6 98

4.3 South Tigray

total

Endamokoni 10

Ofla 10Raya Alamata 9

Raya Azebo 9

4 0 0 4 38total 9 130 4 75 13 205

5. Benshangul–Gumuz

none 0 0 Madora 20none 0 0 wember 33

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Regionn/Zone

Previous New Total

Total WoredaNo of Kebel Woreda

No of Keble

Woreda No of keble

aTotal 2 53 2 536.Gambella

none 0

Etaniga/ Liyu Woreda 23

none 0Gambela 12

Total 0 2 35 2 357. HarariTotal None 0 0 1 10 1 178. Dire Dawa Admi. Council none 0 0 1 21 1 12Grand Total 96 2423 61 1631 157 4052

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ANNEX II: RESULT FRAMEWORK AND MONITORING PLAN

Program Name: Second Agricultural Growth Program (P148591)Results Framework

Program Development ObjectivesPDO StatementThe Program Development Objective is to increase agricultural productivity and commercialization of small holder farmers targeted by the Program.

These results are at Program Level

Program Development Objective IndicatorsCumulative Target Values

Indicator Name Baseline YR1 YR2 YR3 YR4 YR 5End Target

1. Percentage increase in yield for selected crops in targeted households benefiting directly from the Program

(Percentage)

Cereals/pulses (quintals per hectare):- THH: 15.3- FHH: 13.7Vegetables/Fruits: (quintals per hectare)-THH: 67.42-FHH: 55.79

-- --

11.1%11.9%

14.3%16.1%

--

21.8%/22.9%

28.6%30.6%

2. Percentage increase in yield for selected animal products in targeted households benefiting directly from the Program

(Percentage) (liters day/cow)

-THH: 0.70-FHH: 0.71 -- -- 11.1%

11.9% -- 21.8%22.9%

3. Proportion production sold by targeted Cereals/pulses: -- -- --

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beneficiaries for selected crops(Percentage)

- THH: 17.08%/- FHH: 15.29%Vegetables/Fruits:-THH: 37.19%-FHH: 30.77%

22.36%21.11%

41.29%36.21%

26.55%25.49%

44.49%39.97

4. Proportion of animal production sold by targeted beneficiaries for selected products

(Percentage)

-THH: 26.97%- Female: 30.77% -- -- 31.27%

31.89% -- 34.67%35.30%

5. Household dietary diversity:- increase in average number of food groups consumed at HH level 20.

N/A (baseline HH dietary diversity score for AGP II to be determined by the end line survey of AGP I if contained in the study or survey to be conducted by consultant conducting the complimentary action activity)

TBD TBD

Direct Program beneficiaries(Number) - (Core) 0 -- 1,597,730

Female beneficiaries(Percentage - Sub-Type: Supplemental) - (Core) N/A -- 40 40 40 40

Intermediate Results IndicatorsCumulative Target Values

Indicator Name Baseline YR1 YR2 YR3 YR4 YR5End Target

6. Percentage increase in number of farmers using - Male: 26.9% -- -- 39.45% -- 50.56%

20 This Indicator will be monitored by the additional fund by the EU for Complimentary Action to promote Nutrition in to AGP II conducted by consultant

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public agricultural services (male farmers and female farmers)(%) - Female: 20.1% 31.35% 40.56%

7. Number of gender sensitive technologies demonstrated in the Program area (Number) 0 7 20 60 90 101

8. Percentage increase in crop diversity in targeted households benefiting directly from the Program (%)

26.5% HH cultivating 3 crops or more -- -- 36% -- 39.75%

9. Clients who have adopted an improved agricultural technology promoted by the Program (Number) - (Core)

0 -- -- 700,000 1,400,000 1,530,000

Clients who adopted an improved agricultural technology promoted by Program – female (Number - Sub-Type: Breakdown) - (Core)

0 -- -- 300,000 500,000 608,000

10. Number of technologies promoted to public extension services (total and disaggregated by gender sensitive, nutrition and climate smart)(Number)

0 (what about the other)

Gender sensitive: 0

Nutrition: 0

Climate smart: 0

20

7

7

4

50

20

15

10

120

60

50

14

240

90

80

16

280

101

80

20

11. Number of demand-driven improved agricultural technologies under research (total and disaggregated by gender sensitive, nutrition and climate smart technologies)(Number)

Total: 0

Gender sensitive: 0

Nutrition: 0

Climate smart: 0

--

--

--

--

20

3

3

3

60

10

10

10

110

30

30

30

140

40

40

40

12. Collaborative research sub-Programs under Total FREGs: 0 200 450 600 700 700

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implementation/completed(Number) - (Core)

Total Women FREGs: 0 100 200 240 280 280

Collaborative research sub-Programs - under implementation(Number - Sub-Type: Breakdown) - (Core)

Total FREGs: 0Total Women FREGs: 0

150

75

250

100

150

40

100

40

0

0

Collaborative research sub-Programs - completed (number)(Number - Sub-Type: Breakdown) - (Core)

Total FREGs: 0Total Women FREGs: 0

50

25

200

100

450

200

600

240

700

280

13. Volume of breeder seeds and pre-basic seeds for crops produced by research centers (quintals/cumulative)

0 1,258 2,516 3,774 5,032 6,290

14. Water users provided with new/improved irrigation and drainage services (number) (Number) - (Core)

NA 20,000 86,000 172,000 190,000 190,000

Water users provided with irrigation and drainage services - female (number) (Number - Sub-Type: Breakdown) - (Core)

NA 8,000 36400 80,553 71000 78000

15. Percentage of functional water user associations managing effectively irrigation and drainage infrastructures(Percentage)

NA -- 40% 50% 60% 70%

16. Area provided with irrigation and drainage services (ha)

(Hectare(Ha)) - (Core) NA 5000 21500 43000 55000 55000

Area provided with irrigation and drainage services - New (ha)(Hectare(Ha) - Sub-Type: Breakdown) - (Core)

NA 5000 20215 41715 45000 45000

Area provided with irrigation and drainage services - Improved (ha)

0 - 4000 8000 10000 10000

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(Hectare(Ha) - Sub-Type: Breakdown) - (Core)

17. Volume of seeds supplied through diversified channels (disaggregated per supplier)

(Metric ton)

Total:N/APrivate agents: N/AFarmers groups: N/ACooperatives: N/A

------

9%9%9%9%

12%12%12%12%

13%13%13%13%

15%15%15%15%

18. Number of commercial partnerships or market contracts signed between producer groups or cooperatives (supported by the Program) and domestic/international agribusiness actors (processors, wholesalers, retailers, exporters, etc.) for selected value chains (Number)

Number: 0 -- - 23 - 45

19. Percentage of CIGs undertaking a viable business activity (disaggregated youth and female)(Percentage)

Female CIGs: N/AYouth CIGs: N/A

----

---- 50%

35%40%40%

65%50%

20. Percentage of trainings delivered using AGP agreed capacity development approach(Percentage)

NA -- 70% 80% 85% 90%

21. Annual progress reports meets World Bank quality and timely delivery requirements(Yes/No)

NA Yes Yes Yes Yes Yes

.The sources for the rapid baseline are from: AGP1 Program data, IFPRI MTR report and CSA data. The missing rapid baseline data will be collected at appraisal. The rapid baseline data will be updated through household survey and other studies/evaluation (full fledge baseline) as needed after Board and indicators targets will be updated based on the new baseline value. Indicator 1: Rapid baseline source IFPRI AGP MTR./GTP-1Indicator 2: Rapid baseline value index only based on milk - Source IFPRI AGP MTR.Indicator 3 and 4: Source CSA Agricultural sample survey 2013/2014 (2006 e.c.) (September – January 2013/2014) report on crop and livestock product utilization (private peasant holdings, meher season). Data for Amhara, Oromia and SNNPR.

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Indicator 5: Rapid baseline only based on farmers visit by extension agents. Source IFPRI AGP MTR.Indicator 7: For the rapid baseline crop diversity is defined as farmers cropping 3 or more crop types. A more developed index looking at the different food groups will be developed for full fledge baseline data collection. Data source is IFPRI MTR AGP report.Indicator 11: The current targets will be updated (potentially lowered) based on a rapid assessment of research capacity to support the establishment of FREGs.Indicator 14: A review of currently established WUA will be conducted to establish the baseline.NA: not applicable.

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Indicator Description.

Program Development Objective Indicators

Indicator Name Description (indicator definition etc.) Frequency

Data Source / Methodology

Responsibility for Data Collection

Percentage increase in yield for selected crops in targeted households benefiting directly from the ProgramCereals/pulses:- MHH:- FHH:Vegetables/Fruits:-MHH-FHH

Assess agricultural productivity by a proxy with yield for selected key crops in targeted households (MHH and FHH). The proposed key crops at this stage are the following: cereals ( Teff, Barely, Wheat, Maize, Sorghum and sesame) ; pulse (chick-pea and horse-bean ), vegetables including root crops (onions, tomatoes and potatoes) and fruits/Permanent crops (Avocado, Banana, Mangoes and coffee). Two indexes will be developed based on the selected crops (i) cereals and pulses and (ii) vegetables/fruits). The current list of crops will be further defined.

Baseline, mid-term and end of Program

Household survey/ evaluation

Consulting firm/university under responsibility and supervision of PCU M&E Officer and TC

Percentage increase in yield for selected animal products in targeted households benefiting directly from the Program-MHH-FHH

Assess agricultural productivity by a proxy with yield for selected key livestock products in targeted households (MHH and FHH). The proposed selected key livestock products at this stage are the following: poultry (meat), honey, cattle milk, cattle and shoats (meat). An index will be developed based on the selected livestock products and the current list of products will be further defined.

Baseline, mid-term and end of Program

Beneficiaries survey/evaluation

Consulting firm/university under responsibility and supervision of PCU M&E Officer and TC

Proportion production sold by targeted households for selected crops

Assess agricultural productivity by a proxy with yield for selected key crops in targeted households (MHH and FHH). The proposed key crops at this stage are the following: cereals ( Teff, Barely, Wheat, Maize, Sorghum and sesame) ; pulse

Baseline, mid-term and end of

Household survey/ evaluation

Consulting firm/university under responsibility

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Cereals/pulses:- MHH:- FHH:

Vegetables/Fruits:-MHH-FHH

(chick-pea and horse-bean ), vegetables including root crops (onions, tomatoes and potatoes) and fruits/Permanent crops (Banana, Mangoes and coffee). Two indexes will be developed based on the selected crops (i) cereals and pulses and (ii) vegetables/fruits). The current list of crops will be further defined.

Program and supervision of PCU M&E Officer and TC

Proportion of animal production sold by targeted beneficiaries for selected products

-Male-Female

Assess the level of commercialization of the livestock production by targeted beneficiaries for selected key livestock products. At this stage the livestock products are the following: poultry (meat), honey, cattle milk (cow), dairy products (yogurt, butter, cheese, etc.), cattle and shoats (meat) and hide and skins. The current list of livestock products will be further defined.

Baseline, mid-term and end of Program

Beneficiaries survey/evaluation

Consulting firm/university under responsibility and supervision of PCU M&E Officer and TC

Direct Program beneficiaries

Direct beneficiaries are people or groups who directly derive benefits from an intervention (i.e., farmers benefiting from specific trainings at FTCs, farmers in Community Investment Groups, farmers in water user associations, farmers in Farmer Research Extension Groups, farmers being linked to the market by the Program, farmers using animal health services, farmers members of cooperatives supported by the Program, etc.). This indicator is calculated as a percentage.

Annually, starting year 2.

Baseline, mid-term and end of Program

M&E Officers (FPCU, RPCUs and IAs)

Female beneficiaries Female beneficiaries directly derive benefits from an intervention (i.e., farmers benefiting from specific trainings at FTCs, farmers in Community Investment Groups, farmers in water user associations, farmers in Farmer Research Extension Groups, farmers being linked to the market by the Program, farmers using animal health services, farmers members of cooperatives supported by the Program, etc.). This indicator is calculated as a percentage.

Annually, starting year 2.

Baseline, mid-term and end of Program

M&E Officers (FPCU, RPCUs and IAs)

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.

Intermediate Results Indicators

Indicator Name Description (indicator definition etc.) Frequency

Data Source / Methodology

Responsibility for Data Collection

Percentage increase in number of farmers using public agricultural services (male farmers and female farmers)

Measures the functional attractiveness of the public agricultural services to farmers and assess the Program contribution to expansion in public agricultural service delivery. The main agricultural public services benefiting directly male and female farmers are: (i) extension services (through (a) farmers training and demonstration at FTCs by DAs; (b) farmer field days; (c) advice/demonstrations by DAs (crops, livestock, NRM) on farmers plots and other site); (ii) animal health services (farmers using animal health clinics and animal health posts); and (iii) farmers benefiting from insemination services for their livestock. The quality of services accessed will also be captured through qualitative studies. The increase in number of farmers using public agricultural services (male and female) will be analyzed per type of services: Extension services, Animal health services, and Animal health insemination services.

Baseline, mid-term and end of Program

Mid-term and end of Program

Household survey/ evaluation

Qualitative study extension services

Consulting firm/university under responsibility and supervision of PCU M&E Officer and TC

Consulting firm/university under responsibility and supervisionof PCU M&E Officer and TC

Number of gender sensitive technologies demonstrated in the Program area

This indicator assesses the number of gender sensitive technologies demonstrated in the Program area to capture before the adoption stage if women are exposed /trained on technologies that particularly meet their needs. If few gender sensitive technologies are demonstrated to women farmers, chances are that adoption of technologies by women will be very low. Gender sensitive technologies are defined as: (i) technologies based on needs and interest of female farmers; (ii) technologies that reduce time and labor for women farmers; (iii) and technologies that are accessible and affordable by

Annually, starting year 2

Annually starting year 2

Progress Reports

Qualitative survey/study

M&E Officers, (FPCU, RPCUs, IAs)

Consulting firm/university under responsibility and supervision of PCU M&E

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women farmers. Technologies reducing women farm labor and the time that female farmers need to perform household duties could enable them to devote more time to productive farm activities. Qualitative studies will capture the type of gender sensitive technologies demonstrated including technologies for nutrition. Technologies for nutrition refers to technologies: (i) increasing production and consumption for a range of diverse nutrient dense food; and (ii) improving post harvest handling, preservation and processing to improve availability of good nutritional quality and safe food. Not all technologies are reducing the amount of women farm labor or reducing the time spent on household duties or contributing to improved nutrition, but it is still critical to know for the Program if they are being demonstrated.

Officer and TC

Percentage increase in crop diversity in targeted households benefiting directly from the Program

Production diversification (especially combined with increase production of nutrient-dense crops and small-scale livestock) plays an important role for nutrition. Diversified production systems are important to vulnerable producers to enable resilience to climate and price shocks, more diverse food consumption, reduction of seasonal food and income fluctuations, and greater and more gender-equitable income generation A crop diversity index will be constructed from the AGP production data collected through the household survey.

Baseline, MTR and end of Program

Household survey/ evaluation

Consulting firm/university under responsibility and supervision of PCU M&E Officer

Clients who have adopted an improved agricultural technology promoted by the Program

Adoption refers to a change of practice or change in use of a technology that was introduced/ promoted by the Program. The term technology includes a change in practices compared to currently used practices or technologies (seed preparation, planting time, feeding schedule, feeding ingredients, post-harvest, storage, processing, etc). If the Program introduced or promotes a technology package in which the benefit depends on the application of the entire package (e.g., a combination of inputs such as a new variety and advice on agronomic practices

Annually, starting year 2

MTR and end of Program

Progress Reports

Qualitative study/survey

M&E Officers, (FPCU, RPCUs, IAs)

Consulting firm/university under responsibility

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such as soil preparation, changes in seeding time, fertilizer schedule, plant protection, etc) – this will count as one technology. Clients refer to farmers male and female. The results under this indicator under this component are also heavily dependent on the success of Component 2: Agriculture Research and Component 4: Agriculture Marketing and Value Chain. The quality and type of technologies (gender sensitive, nutrition and climate smart) adopted will be captured through qualitative studies.The type of technologies adopted by male and female will also be captured through qualitative survey/studies. It will assess the proportion of technologies adopted per type: (i) gender sensitive; (ii) nutrition; and (iii) climate smart.Gender sensitive technologies are defined as: (i) technologies based on needs and interest of female farmers; (ii) technologies that reduce time and labor for women farmers; (iii) and technologies that are accessible and affordable by women farmers. Gender sensitive technologies are defined as: (i) technologies based on needs and interest of female farmers; (ii) technologies that reduce time and labor for women farmers; (iii) and technologies that are accessible and affordable by women farmers. Technologies reducing women farm labor and the time that female farmers need to perform household duties could enable them to devote more time to productive farm activities. Technologies for nutrition refers to technologies: (i) increasing production and consumption for a range of diverse nutrient dense food; and (ii) improving post harvest handling, preservation and processing to improve availability of good nutritional quality and safe food. Climate smart technologies under the Program refer to technologies that increase productivity and resilience (adaptation).

and supervision of PCU M&E Officer and TC

Clients who adopted an improved agricultural

Adoption refers to a change of practice or change in use of a technology that was introduced/ promoted by the Program. The

No descriptio

No description

No description provided.

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technology promoted by Program – female

term technology includes a change in practices compared to currently used practices or technologies (seed preparation, planting time, feeding schedule, feeding ingredients, post-harvest, storage, processing, etc). If the Program introduced or promotes a technology package in which the benefit depends on the application of the entire package (e.g., a combination of inputs such as a new variety and advice on agronomic practices such as soil preparation, changes in seeding time, fertilizer schedule, plant protection, etc) – this will count as one technology. Clients refer to farmers male and female. The results under this indicator under this component is also heavily dependent on the success of Component 2: Agriculture Research and Component 4: Agriculture Marketing and Value Chain. The quality and type of technologies (gender sensitive, nutrition and climate smart) adopted will be captured through qualitative studies.The type of technologies adopted by male and female will also be captured through qualitative survey/studies. It will assess the proportion of technologies adopted per type: (i) gender sensitive; (ii) nutrition; and (iii) climate smart.Gender sensitive technologies are defined as: (i) technologies based on needs and interest of female farmers; (ii) technologies that reduce time and labor for women farmers; (iii) and technologies that are accessible and affordable by women farmers. Gender sensitive technologies are defined as: (i) technologies based on needs and interest of female farmers; (ii) technologies that reduce time and labor for women farmers; (iii) and technologies that are accessible and affordable by women farmers. Technologies reducing women farm labor and the time that female farmers need to perform household duties could enable them to devote more time to productive farm activities. Technologies for nutrition refers to technologies: (i) increasing production and consumption for a range of diverse

n provided.

provided.

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nutrient dense food; and (ii) improving post harvest handling, preservation and processing to improve availability of good nutritional quality and safe food. Climate smart technologies under the Program refer to technologies that increase productivity and resilience (adaptation)..

Number of technologies promoted to public extension services (total and disaggregated by gender sensitive, nutrition and climate smart)

Assess if technologies reached the stage of being promoted to public extension services. Candidate technologies to be promoted in year 1 are technologies at verification trial stage; the other years it will include technologies at verification stage and technologies based on demand (farmers, extension services, ADPLACs, etc.) AGP for research focus on extension variety trial and verification stage (every technology will be released in 1 to 2 years). Total technologies includes: (i) multi-purpose technologies (that cannot easily be categorized as gender, nutrition or climate smart but contribute overall to the Program objective.); (ii) gender sensitive technologies; (iii) nutrition technologies; (iii) climate smart technologies. Gender sensitive technologies are defined as: (i) technologies based on needs and interest of female farmers; (ii) technologies that reduce time and labor for women farmers; and technologies that are accessible and affordable by women farmers. Technologies for nutrition refers to technologies: (i) increasing production and consumption for a range of diverse nutrient dense food; and (ii) improving post harvest handling, preservation and processing to improve availability of good nutritional quality and safe food. Climate smart technologies under the Program refer to technologies that increase productivity and resilience (adaptation).. Not all technologies are gender sensitive or contributing to improved nutrition or climate smart, but it is still critical to know for the Program how many are being promoted to public extension services.

Bi-annually, starting year 2

Progress Reports

EIAR, RARIs, M&E Officers)

Number of demand- It is an indicator to assess the quality of the processes that led Annually Qualitative (EIAR, RARIs,

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driven improved agricultural technologies under research (total and disaggregated by gender sensitive, nutrition and climate smart technologies)

to the selection of technologies under research. The terms demand driven and improved refers to the quality of the processes to have the technology under research: (i) the identification of technologies under research is demand-driven: based on farmers, extension services and other actors demand to address specific issues; (ii) the technologies under research contributes to productivity and commercialization; (iii) the choice of technologies under research take into account mainstreaming of gender, nutrition, and climate smart; and (iv) the choice of technologies under research is in line with the value chains of the Program.Gender sensitive technologies are defined as: (i) technologies based on needs and interest of female farmers; (ii) technologies that reduce time and labor for women farmers; (iii) and technologies that are accessible and affordable by women farmers. Technologies for nutrition refers to technologies: (i) increasing production and consumption for a range of diverse nutrient dense food; and (ii) improving post harvest handling, preservation and processing to improve availability of good nutritional quality and safe food. Climate smart technologies refer to technologies that increase productivity and resilience (adaptation. Not all technologies are gender sensitive or contributing to improved nutrition or climate smart, but it is still critical to know for the Program how many are being under research. First year is dedicated to the demand assessment survey that will determine the exact number of technologies to be under research.

study/Desk review (process and potential impact)

M&E Officers, TC )

Collaborative research sub-Projects under implementation/completed (Disaggregated by total FREGs and women FREGs)

This indicator refers to the FREGs and shows the growth in formal collaboration between the public research, extension services and farmers. “Under implementation” is defined as a FREG for which a contractual arrangement has been established. To avoid the risk of double counting, once FREGs have been completed, they should be reflected as completed

Bi-annually, starting year 2

Progress Reports

(EIAR, RARIs, M&E Officers)

Consulting firm/university under

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and not under implementation.

MTR and end evaluation

Qualitative study

responsibility and supervision of PCU M&E Officer and TC

Collaborative research sub-Projects - under implementation(Disaggregated by total FREGs and women FREGs)

This indicator refers to the FREGs and shows the growth in formal collaboration between the public research, extension services and farmers.

Bi-annually, starting year 2

MTR and end evaluation

Progress Reports

Qualitative study

(EIAR, RARIs, M&E Officers)

Consulting firm/university under responsibility and supervision of PCU M&E Officer and TC

Collaborative research sub-Projects - completed (number)(Disaggregated by total FREGs and women FREGs)

This indicator refers to the FREGs and shows the growth in formal collaboration between the public research, extension services and farmers.

Bi-annually, starting year 2

MTR and end evaluation

Progress Reports

Qualitative study

(EIAR, RARIs, M&E Officers)

Consulting firm/university under responsibility and supervision of PCU M&E Officer and TC

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Volume of breeder seeds and pre-basic seeds produced for crops by research centers

This indicator assesses the capacity of research centers to provide breeder seeds and pre-basic seeds. The supply of breeder seeds and pre-basic seeds is critical to ensure the production of seeds (under component 4) by farmers, cooperatives and private agents.

AnnuallyProgress Reports

(EIAR, RARIs, M&E Officers)

Water users provided with new/improved irrigation and drainage services (number)

This indicator assesses the expansion in access to irrigation and drainage of farmers. Water users refer to farmers who are recipient of irrigation and drainage services from the Program. “Irrigation and drainage services” refers to the better delivery of water to, and drain water from, arable land, including better timing, quantity, quality, and cost-effectiveness for the water users. “New irrigation and drainage services” refers to the provision of irrigation and drainage services in an area that has not had these services before. The area is not necessarily newly cropped or newly productive land, but is newly provided with irrigation and drainage services, and may have been rain fed land before. “Improved irrigation and drainage services” refers to the upgrading, rehabilitation, and/or modernization of irrigation and drainage services in an area with existing irrigation and drainage services.

Bi-annually, starting year 2

MTR and end of Program

Progress report

Qualitative evaluation

M&E Officers, (FPCU, RPCUs, BoW)

Consulting firm/university under responsibility and supervision of PCU M&E Officer and TC

Water users provided with irrigation and drainage services - female (number)

This indicator assesses the expansion in access to irrigation and drainage of women farmers. Water users refer to farmers who are recipient of irrigation and drainage services from the Program.

Bi-annually, starting year 2

Progress report

Qualitative evaluation

M&E Officers, (FPCU, RPCUs, BoW)

MTR and end of Program

Percentage of functional water user associations managing effectively irrigation and drainage infrastructures

Assesses the functionality IWUAs and their effective management of irrigation and drainage infrastructures of the Program—as a proxy for measuring their efficient use of irrigation water. The efficiency of water use will also be assessed more in depth through a qualitative study of a sample

Bi-annually, starting year 2

Progress report

M&E Officers, (FPCU, RPCUs, BoW)

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of irrigation water user associations and irrigation and drainage infrastructures. Functional irrigation water user associations refer to an association with: (i) registered with supervising body (to be designated by each regional states); (ii) trained members (water management, water savings method, irrigation farming methods, new irrigation technologies, maintenance of infrastructure, book keeping, financial management, etc.); (iii) has by laws (rules for consumption of irrigation water and collect fees); (vi) collect fees; and (vi) 30 percent women members (if sufficient women have land use right in the specific irrigation scheme) in addition the Program will push as much as possible for at least 50 percent of the women members in leadership position. Managing effectively refers to (i) effective maintenance and operation of the irrigation and drainage system; (ii) development of specific scheduling of water delivery; and (iii) delivery of water to farmers plots in the right quantity and at an appropriate time.

MTR and end of Program

Qualitative evaluation (including evaluation of efficiency use of water)

Consulting firm supervised by M&E Officer

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Area provided with irrigation and drainage services (ha)(disaggregated by SSI and HI)

Irrigation and drainage services” refers to the better delivery of water to, and drainage of water from, arable land, including better timing, quantity, quality, and cost-effectiveness for the water users. “New irrigation and drainage services” refers to the provision of irrigation and drainage services in an area that has not had these services before. The area is not necessarily newly cropped or newly productive land, but is newly provided with irrigation and drainage services, and may have been rain fed land before. “Improved irrigation and drainage services” refers to the upgrading, rehabilitation, and/or modernization of irrigation and drainage services in an area with existing irrigation and drainage services. The data are disaggregated by small-scale irrigation and household irrigation, as women farmers are mostly beneficiary from household irrigation.

Bi-annually, starting year 2

Progress report M&E Officers, (FPCU, RPCUs, BoW)

Area provided with irrigation and drainage services - New (ha)(disaggregated by SSI and HI)

Irrigation and drainage services” refers to the better delivery of water to, and drainage of water from, arable land, including better timing, quantity, quality, and cost-effectiveness for the water users. The data are disaggregated by small-scale irrigation and household irrigation, as women farmers are mostly beneficiary from household irrigation.

Bi-annually, starting year 2

Progress report M&E Officers, (FPCU, RPCUs, BoW)

Area provided with irrigation and drainage services - Improved (ha)(disaggregated by SSI and HI)

Irrigation and drainage services” refers to the better delivery of water to, and drainage of water from, arable land, including better timing, quantity, quality, and cost-effectiveness for the water users. The data are disaggregated by small-scale irrigation and household irrigation, as women farmers are mostly beneficiary from household irrigation.

Bi-annually, starting year 2

Progress report M&E Officers, (FPCU, RPCUs, BoW)

Volume of seeds supplied through diversified channels (disaggregated per supplier)

This indicator measure the volume of seeds produced per value chains per type of channels (private agents; farmers groups; and cooperatives). Seeds is defined as grain crops.

Annually, starting year 2

Progress report USAID, PCU M&E Officer

Number of commercial partnerships or market contracts signed between

This indicator assesses the effectiveness of component 4 at improving market access and establishing commercial linkages between farmer groups or cooperatives and domestic, regional and

Bi-annually starting

Survey/Evaluation

USAID, PCU M&E Officer

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producer groups or cooperatives (supported by the Program) and domestic/international agribusiness actors (processors, wholesalers, retailers, exporters, etc.) for selected value chains

international agribusiness actors such as processors, wholesalers, retailers, exporters, etc. Producer groups are defined as CIGs.

year 2

Percentage of CIGs undertaking a viable business activity (disaggregated youth CIGs and female CIGs)

It assesses the sustainability of the business for the CIGs. It means that: (i) the members make profit with the activity they undertake as an individual in the CIG; (ii) the CIG itself makes profit; (v) the reserves of the group are increased until they are sufficient to cover the costs of a full business cycle.

Annually, starting at MTR

Progress report

MTR and Final Evaluation

M&E Officer, (FPCU, RPCUs, USAID)Qualitative evaluation

Percentage of trainings delivered using AGP agreed capacity development approach

This indicator measures the quality of the capacity building under the Program. The definition of capacity development approach will be defined once AGP2 has developed a detailed capacity development approach for the overall Program. It is expected the assessment will be conducted by the capacity building facility supported by DFATD.

Annually Qualitative evaluation of a sample of trainings

TA for capacity development supervised by M&E Officer and Capacity Building Officer

Annual progress reports meets World Bank quality and timely delivery requirements

This indicator only measures whether or not the M&E system ensure its basic function of providing quality and timely data for: identification of issues, tracking of progress towards intermediate outcomes and outcomes and support effective decision-making for Program coordination unit. Quality requirements refer to the agreed format for reporting (data, analysis, recommendations, etc.) and the required data (such as results framework and other critical indicators/data agreed upon).

Annually Progress reports/Review

M&E Officers/World Bank

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