Document ofThe World Bank

FOR OFFICIAL USE ONLY

Report No: 82700-AFR

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVLOPMENT ANDINTERNATIONAL DEVELOPMENT ASSOCIATION

PROJECT PAPER

ON A

PROPOSED ADDITIONAL

IN THE AMOUNT OF US$ 45.0 MILLION

TO THE

FORUM FOR AGRICULTURAL RESEARCH IN AFRICA (FARA)

FOR A

FARA MULTI-DONOR TRUST FUND

December 13, 2013

Agriculture, Rural Development, Irrigation (AFTA2)Africa Region

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

CURRENCY EQUIVALENTS

Currency Unit = US$1

FISCAL YEARJanuary 1 – December 31

ABBREVIATIONS AND ACRONYMS

AF Additional FinancingAFAAS African Forum for Agricultural Advisory ServicesANAFE African Network for Agriculture, Agroforestry and Natural Resources

EducationARD Agricultural Research and DevelopmentASARECA Association for Agricultural Research in East and Central AfricaAUC African Union CommissionCAADP Comprehensive African Agricultural Development PrograCCARDESA Centre for Coordination of Agricultural Research and Development for

Southern AfricaCGIAR Consultative Group on International Agricultural ResearchCIDA Canadian International Development AgencyCILSS Comité Permanent Inter-Etats De Lutte Contre la Sécheresse dans le

Sahel/Permanent Interstates Committee for Drought Control in the SahelCIRDES Centre international de recherche-développement sur l'elevage en zone

subhumideCORAF/ WECARD

West and Central African Council for Agricultural Research and Development

CRP CGIAR Research ProgramsDfID UK’s Department for International DevelopmentDONATA Dissemination of New Agricultural Technologies in AfricaEC European CommissionFAAP Framework for African Agricultural ProductivityFARA Forum for Agricultural Research in AfricaIAR4D Integrated Agricultural Research for DevelopmentICIPE International Centre of Insect Physiology and EcologyIFR un-audited Interim Financial ReportIPF Investment Project FinancingISR Implementation Status and Results ReportITC International Trypanotolerance Centre (The Gambia)KPI Key Performance IndicatorsM&E Monitoring and EvaluationMDG Millennium Development GoalMDTF Multi-Donor Trust FundMTOP Medium-Term Operational Plans

NARS National Agricultural Research SystemNASRO North African Sub-Regional OrganizationNEPAD New Partnership for Africa’s DevelopmentNGO Non-Governmental OrganizationNPCA NEPAD Planning and Coordinating AgencyNSF Networking Support FunctionsOM Operational ManualPAFFO Pan-African Farmers ForumPanAAC Pan-African Agribusiness and Agro-Industry ConsortiumPANGOC Pan Africa NGO ConsortiumPDO Project Development ObjectivePMP Performance Monitoring PlanRAILS Regional Agricultural Information and Learning SystemRUFORUM Regional Universities Forum for Capacity Building in AgricultureSABIMA Strengthening Capacity for Safe Biotechnology Management in Sub-Saharan

AfricaSCARDA Strengthening Agricultural Research in AfricaSRO Sub-Regional OrganizationSSA CP Sub-Saharan Africa Challenge ProgrammeTEAM Africa Tertiary Education for Agriculture Mechanism for AfricaUNIBRAIN Universities, Business and Research in Agricultural Innovation

Vice President: Makhtar DiopDirector: Colin Bruce

Sector Manager: Severin KodderitzschTask Team Leader: David J. Nielson

FORUM FOR AGRICULTURAL RESEARCH IN AFRICA (FARA)FARA MULTI-DONOR TRUST FUND

CONTENTS

Project Paper Data Sheet i

Project Paper 1

I.Introduction 1

II. Background and Rationale for Additional Financing 1

III. Proposed Changes 7

IV. Appraisal Summary 11

Annexes

1. Comparison of Current and Proposed Indicators 16

2. Revised Results Framework and Monitoring Indicators 20

3. Operational Risk Assessment Framework 23

FORUM FOR AGRICULTURAL RESEARCH IN AFRICA (FARA)FARA MULTI-DONOR TRUST FUND

ADDITIONAL FINANCING DATA SHEET

Basic Information - Additional Financing (AF)Country Director: Colin BruceSector Manager: Severin KodderitzschSector Director: Jamal SaghirTeam Leader: David NielsonProject ID: P147000Expected Effectiveness Date: January 1, 2014Lending Instrument:Additional Financing Type: Scale-Up

Sectors: Agricultural extension and research (80%), Tertiary Education (10%), Vocational Training (5%), Adult Literacy/Non-formal Education (5%)Themes: Rural policies and institutions (50%), Rural services and infrastructure (50%)Environmental category: CExpected Closing Date: December 31, 2018Joint IFC: NoJoint Level: No

Basic Information - Original ProjectProject ID: P112684 Environmental category: B - PartialProject Name: FARA MDTF Expected Closing Date: December 31, 2018Joint Level:Lending Instrument: Investment Project Financing

Joint IFC:Fragility or Capacity Constraints [ ]Financial Intermediary [ ]Series of Projects [ ]

AF Project Financing Data[ ] Loan [ ] Credit [ X ] Grant [ ] Guarantee [ ] Other:Proposed terms:

AF Financing Plan (US$m)Source Total Amount (US$m)

Total Project Cost: Cofinancing: Borrower: Total Bank Financing: IBRD IDA FARA MDTF Future expected contributions Recommitted

45.0

20.025.0

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Client InformationRecipient: Forum for Agricultural Research in Africa (FARA)Responsible Agency: Forum for Agricultural Research in Africa (FARA)Contact Person: Yemi Akinbamijo, Executive DirectorTelephone No.: +233 302 772 823Fax No.: +233 302 773 676Email: yakinbamijo@fara-africa.org

AF Estimated Disbursements (Bank FY/US$m)FY 2014 2015 2016 2017 2018Annual 8.4 8.5 10.0 9.0 9.1Cumulative 8.4 16.9 26.9 35.9 45.0

Project Development Objective and DescriptionOriginal project development objective: To align African agricultural institutions at the national, regional and continental levels with the principles and objectives of the Comprehensive African Agricultural Development Program (CAADP) – Pillar IV, for effective agricultural research, extension, technology adoption, and training and education.

Revised project development objective:To strengthen Africa’s capacity for agricultural innovation with purposefully determined outcomes, creating capacity for innovation and enabling environments for implementation.

Project description:

Component 1: Strategic Priorities (recipient)Component 2: Corporate Governance Reform Stream and Program Management (recipient)Component 3: Sub-Grants for Sub-Projects (recipient)Component 4: Management and Supervision of the MDTF (Bank)

Safeguard and Exception to PoliciesSafeguard policies triggered:Environmental Assessment (OP/BP 4.01)Natural Habitats (OP/BP 4.04)Forests (OP/BP 4.36)Pest Management (OP 4.09)Physical Cultural Resources (OP/BP 4.11)Indigenous Peoples (OP/BP 4.10)Involuntary Resettlement (OP/BP 4.12)Safety of Dams (OP/BP 4.37)Projects on International Waterways (OP/BP 7.50)Projects in Disputed Areas (OP/BP 7.60)

[ ]Yes [X] No[ ]Yes [X] No[ ]Yes [X] No[ ]Yes [X] No[ ]Yes [X] No[ ]Yes [X] No[ ]Yes [X] No[ ]Yes [X] No[ ]Yes [X] No[ ]Yes [X] No

Is approval of any policy waiver sought from the Board (or MD if RETF operation is RVP approved)?Has this been endorsed by Bank Management? (Only applies to Board approved operations)Does the project require any exception to Bank policy?Has this been approved by Bank Management?

[ ]Yes [X] No

[ ]Yes [ ] No

[ ]Yes [X] No[ ]Yes [ ] No

Page | ii

Conditions and Legal Covenants:Financing Agreement

ReferenceDescription of

Condition/CovenantDate Due

N/A N/A N/A

Page | iii

I. Introduction

1. This Project Paper seeks the approval of the Regional Vice President (RVP) to provide additional financing (AF) in an amount of US$45 million to the Multi-Donor Trust Fund (MDTF) for the Forum for Agricultural Research in Africa (FARA) (P147000/TF095129) to implement additional and expanded activities that scale up impact and development effectiveness. It also seeks to restructure some aspects (revision of the PDO, results framework, components 1 and 3, environmental category rating and 5-year extension of the closing date) and similar changes at the parent level (TF071192).

2. The FARA Secretariat, established in 2002, has been operating under a ten-year Strategic Plan (2007-2016) developed to support sustainable improvements to broad-based agricultural productivity, competitiveness and markets. The Strategic Plan was to have been implemented through two successive five-year Medium-Term Operational Plans (MTOP I and II), however, due to delays in mobilizing the original MDTF financing, the implementation of MTOP 1 only begin in 2009 and was available for roughly 4 years (2009-2013). Furthermore following the emergence of new priorities and increased capacity on the part of FARA’s main partners, FARA updated its Strategic Plan in 2013 and accordingly developed a new MTOP to cover the period 2014-2018. The proposed AF reflects FARA’s revised Strategy and new MTOP, both of which were elaborated through a consultative process with African stakeholders1. The Strategic Plan and MTOP were approved by FARA's General Assembly (its highest governing body) and the proposed AF would be made available on the basis of agreement by the World Bank on MTOP II. MTOP I supported by the current MDTF ends on December 31st, 2013 and MTOP II begins on January 1, 2014.

3. In keeping with improvements made to FARA’s Strategic Plan (and subsequently to MTOP II), the PDO, results framework and component descriptions have been modified to align them to FARA’s new Strategic Priorities. No changes are proposed to the implementation arrangements of the original Trust Fund. The proposed AF will therefore contribute to ensuring implementation of FARA’s updated Strategic Priorities and MTOP II by building on the lessons learned and achievements from MTOP I. The AF will allow FARA to provide strategic leadership and foresight, facilitate collective action on priority areas that require regional solutions and strengthen the capacity of national programs to make them more effective partners in solving regional issues.

4. The MDTF is currently funded by the UK’s Department for International Development (DfID), Canadian International Development Agency (CIDA), European Commission (EC), and the Netherlands.

II. Background and Rationale for Additional Financing in the amount of US$45.0 million and Restructuring

5. Background. The Forum for Agricultural Research in Africa (FARA) is the apex organization for agricultural research for development in Africa and the AUC/NEPAD mandated body to play a lead role in the implementation of Pillar IV of the Comprehensive Africa Agriculture Development

1 These included the African Union Commission (AUC), NEPAD Planning and Coordinating Agency (NPCA), Regional Economic Community (RECs), Sub-Regional Organizations (SROs), African Forum for Agricultural Advisory Services (AFAAS), Tertiary Education for Agriculture Mechanism for Africa (TEAM Africa) and Development Partners.

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Programme (CAADP) focusing on generation, dissemination and adoption of agricultural innovations. The forum encompasses all stakeholders, African and non-African, who are committed to enabling African agricultural development and the achievement of the Millennium Development Goals (MDG).

6. FARA’s development objective is to ‘align African agricultural institutions at the national, regional and continental levels with CAADP Pillar IV FAAP Principles for effective research, extension, and training and education’. The MDTF has the following four main components, three of which are recipient-executed and one is Bank-executed:

Component 1: Networking Support Functions (NSFs) Component 2: Corporate Governance Reform Stream & Program Management Component 3: Sub-grants for Sub-projects Component 4: Management and Supervision of the Trust Fund (Bank-executed)

7. FARA currently delivers on its mandate through four mutually-reinforcing NSFs, namely: Advocacy and Policy (NSF1/3)2; Knowledge Sharing and Dissemination (NSF2); Capacity Strengthening (NSF4); and Partnerships and Strategic Alliances (NSF5). The NSFs mobilize and support FARA’s constituents and partners (SROs, National Agricultural Research Systems (NARS), and regional agro-focused networks) to undertake activities that generate continental spill overs and pro bono innovations in the agricultural sector.

8. The FARA MDTF became effective on September 4, 2009 with financing committed by CIDA, DfID, the EC, and subsequently the Netherlands. The MDTF was prepared with expected donor contributions of US$45.9 million, however, only US$ 33.5 million has been secured to date3 (see table below for details). Despite a funding gap of roughly US$12.4 million that has constrained FARA’s ability to implement activities to the level anticipated in the MTOP, FARA has made reasonable progress in its overall implementation, and in particular in the areas specified for support from the MDTF. A grant in the amount of US$31 million has been disbursed to FARA and the current closing date is December 31, 2013.

2 Originally, Advocacy and Policy were two separate NSFs – NSF1 and NSF3. Later the two were merged into one NSF, NSF1/3.

3 DfID was originally expected to contribute £10 million, but only ended up committing £500K, which was never paid into the MDTF. DfID did not ask to withdraw its support at any time from the MDTF, therefore it remains a donor in name only. It is possible that given FARA’s new strategic direction and new leadership DfID may consider providing support over the next 5 years.

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Table 1: Existing donors to the MDTF and their contributions:

DonorAgreemen

t Sign Date

Transaction Currency

Contribution Amount

Contribution Amount (USD)

Funds Received to date (USD)

EC 12/23/08 EUR 14,000,000 18,634,463 17,696,570CIDA 07/14/09 CAD 10,000,000 9,875,558 9,875,558Netherlands 12/15/10 USD 4,195,804 4,195,804 4,195,804DfID* 04/01/09 GBP 500,000 800,000 0Total 33,514,825 31,767,932

*See footnote 2.

9. Project Performance. Over the life of the MDTF, the FARA Secretariat implemented its current MTOP covering the period 2009 – 2013. During this period FARA more firmly established itself as the lead African institution providing technical assistance in Integrated Agricultural Research for Development (IAR4D) to the AUC and NPCA, within the context of implementing CAADP. FARA promoted trans-continental learning and knowledge sharing among stakeholders; strengthened the capacities of relevant actors at country level in planning processes, policy design and the design and implementation of programs; coordinated platforms for enabling IAR4D actors to align and streamline their actions, and convened, coordinated and mobilized research, extension and education stakeholders to align their actions to common strategies (collective actions).

10. FARA also played a key role in successfully promoting continental and sub-regional organizations to lead different aspects of agricultural development:

for farmers’ organizations

the Pan-African Farmers Forum (PAFFO)

for research North African Sub-Regional Organization (NASRO) and the Centre for Coordination of Agricultural Research and Development for Southern Africa (CCARDESA), the Association for Agricultural Research in East and Central Africa (ASARECA) and the West and Central African Council for Agricultural Research and Development (CORAF)

for education TEAM Africafor extension African Forum for Agricultural Advisory Services(AFAAS)for agribusiness and agroindustry

Pan-African Agribusiness and Agro-Industry Consortium (PanAAC)

for NGOs Pan Africa NGO Consortium (PANGOC)

FARA has participated in important international forums such as the G8 and the United Nations Food Security Summit representing the continent in matters pertaining to agricultural innovation systems. Moreover, FARA has been designated, along with the Consultative Group on International Agricultural Research (CGIAR), as the co-lead institution for the work stream on technology innovation platforms within the G8’s New Alliance for Food Security and Nutrition.

11. In consultation with stakeholders, FARA has developed, convened and catalyzed a number of Africa-wide initiatives, including the Sub-Saharan Africa Challenge Programme (SSA CP), which has validated and institutionalized IAR4D, and commissioned an

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assessment of NARS’ capacities, which led to the development of the program for Strengthening Agricultural Research in Africa (SCARDA). Moreover, FARA has assumed the lead role for the formulation of an African-owned and led Science Agenda for Agriculture in Africa. This is expected to serve as an organizing framework for Africa’s agricultural science and technology programs (research, extension, education) with those of CGIAR and other partners. With active participation and involvement of FARA, the process to develop the Science Agenda has transitioned from planning to implementation phase.

12. FARA has also developed several other initiatives based on the requirements of its stakeholders, such as the Regional Agricultural Information and Learning System (RAILS), which enables stakeholders to receive and process information; the Dissemination of New Agricultural Technologies in Africa (DONATA), which has proved the merit of creating platforms for the interaction of diverse stakeholders involved in technology adoption; Strengthening Capacity for Safe Biotechnology Management in Sub-Saharan Africa (SABIMA), which has strengthened African national capacities for stewardship that will encourage the transfer of proprietary technologies; and the UniBRAIN initiative, which is breaking down the barriers between African universities, business and research to release the talent and capacities within these institutions to participate in joint innovations. All of these are aimed at enhancing Africa’s capacity for innovation in agriculture.

13. Through its NSF Units, FARA has played a key role in the formulation of 35 CAADP Country Compacts and 27 National Agricultural Investment Plans that incorporate CAADP Pillar 4 elements. Support to NARS was also provided mainly by producing 8 country case study reports in four sub-regions thus identifying priority areas for agriculture investment. About 33 policy briefs on strategic analysis of policy and market issues were produced and more than 60 recommendations generated from the FARA Regional Policy Dialogue workshops, available in Policy Dialogue Reports. More than 50 functional innovation platforms (platforms that engage all relevant stakeholders) have been established and more than 20 institutions (SROs, NARS, NGOs etc.) have adopted the innovation platform approach. FARA has increased the number of stakeholders who use knowledge management tools for knowledge exchange at continental level from 200 in 2008 to 2500 in 2013. This refers to membership in FARA’s online networks, RAILS and Africa Adapt platforms. Furthermore, 25 national information and learning systems on agricultural innovations and 6 continental platforms on knowledge exchange and technology dissemination for agricultural research and development (ARD) were established, and 25 country platforms were integrated into continental platforms.

14. FARA has clearly established itself as the lead voice and coordinating institution for the African continent with respect to agricultural innovation through agricultural research, agricultural advisory services, and agricultural education. Through its leadership on the CAADP – CGIAR Alignment initiative (often referred to as the Dublin Process), FARA has established a new well-defined relationship between Africa (and FARA itself) and global agricultural research institutions. This is codified in the MoU between FARA and the AUC – and also in the MoU between the AUC and the CGIAR. Through its engagement with CAADP, FARA has clarified its role on the continent and developed well-functioning partnerships with the SROs. Through CAADP, FARA has worked very closely and effectively with AUC, NPCA, the RECs, and the SROs, in providing support for the

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development of agricultural innovation aspects of national and regional agricultural investment plans in more than 35 countries as well as at the regional level. These engagements have led to a much clearer understanding of respective roles and capacities and relationships between the various levels which are very consistent with the principle of subsidiarity. The activities described in the paragraphs above are examples of FARA fulfilling its continental role.

15. ISR ratings over the life of the project for implementation progress and progress towards achievement of the PDO have consistently been rated “satisfactory” and FARA is on course to meet the MDTF’s development objective. The MDTF is in compliance with all grant covenants.

Rationale for Additional Financing and Restructuring

16. FARA’s new strategy is rooted in the requirements of Africa’s agricultural transformation agenda. The Sixth Joint Annual Meeting of the United Nations Economic Commission for Africa (UNECA), the Conference of African Ministers of Finance, Planning and Economic Development and the African Union (AU) Conference of Ministers of Economy and Finance in March 2013 agreed on the need for a refocused program for UNECA that supports the transformation agenda for Africa. The reconfigured programs will focus on conducting research and normative work to support African member states in transforming their economies from low-income to middle-income status. Programming will emphasize the central role of regional integration in African development by promoting the nexus between trade, industry, agriculture, land, infrastructure, investment, intra-Africa trade and participation in international trade.

17. Africa’s IAR4D context is also changing. There is increased global interest in public- and private- sector investment in agricultural research and development. This interest provides an expanded space for FARA to serve as the voice for African agriculture, and to engage in, and connect with global initiatives. Stakeholder appreciation of the contribution of the private sector to agricultural development, and to the subsequent benefits to people’s livelihoods, has grown significantly too. At its Camp David Summit in May 2012, the G8 announced the formation of the New Alliance for Food Security and Nutrition. FARA has been designated – along with the CGIAR – as a co-leading institution for the Alliance work-stream on technology innovation platforms. This means that there is a need for FARA to deepen its efforts to engage the private sector in research, extension and education.

18. It is widely accepted that Africa’s poor agricultural performance is traceable to inappropriate policies and weak planning processes. There is therefore a need to strengthen Africa’s capacity to determine the kind of agriculture it wants, as well as how this might be achieved. Already, FARA has championed the establishment of the African chapter of the Global Foresight Academy under the Global Forum on Agricultural Research (GFAR). However, there is a further need to catalyze the actions necessary to develop the capacity for Africa to conduct its own foresight and associated strategic analyses.

19. Africa is home to the world’s youngest population. FARA has demonstrated its commitment to supporting Africa’s efforts in making the most of the demographic bonus of having a young population. FARA hosts the Africa chapter of the Young Professionals in

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Agricultural Research for Development (YPARD). FARA has already intensified its focus on improving the quality and relevance of agricultural education and initiated work with research, extension and education institutions and organizations to build or strengthen their knowledge, information and skills (KIS) capacities. Nevertheless, more needs to be done to strengthen Africa’s ability to build capacity in these areas. Another area is gender mainstreaming which is addressed as a cross-cutting theme in FARA’s programs, policies and activities, and those of its stakeholders, including SROs, NAROs and farmer organizations. To ensure a proper commitment to addressing gender, FARA’s Gender Strategy (approved in 2013) is an integral component of FARA’s Strategic Plan and MTOP II. The Gender Strategy presents the broad strategic framework within which FARA will pursue the goal of mainstreaming gender in facilitating the improvement of agricultural productivity in Africa.

20. The leadership role that FARA played in the implementation of CAADP Pillar IV widened the scope set by this original mandate (which focused on agricultural research), to embrace legitimate involvement with actors spanning the whole agricultural innovation system. The AUC has renewed its Memorandum of Understanding (MoU) with FARA, according to which FARA will continue to provide IAR4D technical assistance to the AUC and its technical agencies, including NPCA, while sustaining the CAADP momentum.

21. All the above changes in the context within which FARA operates, call for a strategy that refocuses FARA on its core functions that are best done at the continental level without duplicating what its partners are doing, but instead creates synergies with them. The strategy needs to be clear on FARA’s value proposition and how to deliver on it, know its target clients, to reach out to them, and how to sustain their interest in the services offered. It is also essential for FARA to know what resources are required to carry out the actions, and who to partner within the delivery of its mandate.

22. The new Strategic Plan refocuses and realigns FARA’s contribution to meeting these challenges to set African agriculture on the transformation growth phase. FARA’s contribution intends to build upon its achievements, the central one being that FARA is recognized as the apex body of a multi-tier, multi-stakeholder system for ARD in Africa. The need for a new strategy is also occasioned, in part, by the fact that the SROs have grown in number with the establishment of NASRO and CCARDESA, and have acquired the experience and confidence to re-define their own mandates and comparative advantages in contributing to agricultural research and the complementarities between them and FARA have been clarified. Furthermore, its international counterpart, the CGIAR, has undergone a major reform process that has culminated in the adoption of a multi-center approach in the CGIAR Research Programs (CRPs).

23. Given that the MDTF is already active with well-established and adequate institutional and fiduciary arrangements, an extended MDTF aligned with the MTOP II timeframe offers a suitable mechanism and opportunity to ensure continued and uninterrupted implementation of the MDTF in support of the MTOP II. Both donors and FARA recognize this and have expressed satisfaction with the MDTF as a mechanism for channeling support to FARA. Accordingly, all parties have agreed that support to FARA should continue over the next five years through the existing mechanism, hence the request for additional financing in the

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amount of US$45 million and 5-year extension of the closing date. The European Commission has made a firm commitment of €14 million (~US$20 million) to support implementation of MTOP II. This leaves a funding gap of approximately US$25 million that is expected to be filled by donors (e.g. CIDA, the Netherlands, USAID) over the coming years. In the interim, the other existing donors (CIDA, DfID and the Netherlands) will withdraw from the MDTF on the original end disbursement date and rejoin the trust fund when they are ready to commit new funding.

24. Realizing that funding for the MTOP II may not come readily, FARA has developed a resource mobilization strategy and has initiated its implementation. FARA’s long-term sustainability and ability to pursue African agricultural research priorities depends on attracting funding from African sources. For this, FARA is closely working with the AUC and identifying champions who can influence financing decisions. Changes in the way FARA conducts its business will also be directed at attracting private-sector funds. First, by becoming more proactively involved with the private sector through demonstrable value addition and second, by adopting a more business-like approach to the way it conducts and presents itself in relations with third parties. To that end, each strategic priority will develop a well-articulated business model that sets out who it is serving, what it is offering, how it is reaching them, how it will keep them, what has to be done, what contribution its partners will make, what it will do itself, what its activities will cost and how they will be financed. Other non-traditional donors will also be approached to raise funds to fully implement the MTOP.

25. FARA’s MTOP proposes three budget scenarios (high, low and base case). Given current funding constraints, FARA has opted to implement the low case and the associated 2014 annual work plan and budget were approved by the Bank task team and the FARA Board of Directors in November, 2013. Should no additional funding materialize by the second year of MTOP II implementation, FARA will re-assess its work plan and operational costs (including staffing) with a view towards downsizing to fit the available resources. FARA will continue to exercise the caution used over the past several years by applying criteria agreed with the Bank for the prioritization of its annual work plan activities.

III. Proposed changes

26. The current overall structure of the MDTF will remain as is. Likewise, grant implementation and institutional arrangements will remain as is under the parent MDTF. However, the following changes are envisaged in relation to the proposed AF.

a) Extension of closing date: FARA MDTF grant closing date would be extended from December 31, 2013 to December 31, 2018.

b) Modifications to the Results Framework (RF): The RF of the MDTF will be adjusted to reflect the reorientation of the NSFs (now Strategic Priorities). See Annex 1 for the revised RF with updated indicators and five-year targets.

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c) Modification to the Environmental Category rating from B to C. No safeguards policies were triggered under the current MDTF and the two sub-projects financed from FARA MDTF supported set-up and operational costs of a continental (AFAAS) and sub-regional (CCARDESA) organization. In keeping with the principle of subsidiarity, FARA will not be undertaking any activities that will require physical or civil works.

d) Alignment of the PDO with MTOP II: With the strengthening of the SROs and the other institutions over the past 5 years, many of the tasks set out in FARA’s 2007–2016 Strategic Plan with respect to Networking Support Functions are due to be handed over to other organizations. To fulfill FARA’s redefined role as lead institution for agricultural research on the continent , the PDO and components of the current MDTF will be modified and aligned to the Strategic Priorities of the FARA Strategic Plan/MTOP II, namely, (i) envisioning the agricultural transformation that Africa wants and how to achieve it; (ii) ensuring that Africa has sufficient human and institutional capacity integrated to implement its agricultural ambitions; and (iii) making sure that policy makers get the evidence-based information they require to create enabling policy environments and that their constituents are well informed and support the changes.

The PDO of the current MDTF and that of the MTOP is:

“To align African agricultural institutions at the national, regional and continental levels with CAADP Pillar IV FAAP Principles for effective research, extension, and training and education.”

To make it consistent with the Strategic Priorities, the proposed revised PDO for the new MTOP is as follows:

“To strengthen Africa’s capacity for agricultural innovation with purposefully determined outcomes, creating capacity for innovation and enabling environments for implementation.”

Under the current MTOP, the modified objective was pursued in the course of implementing CAADP Pillar IV FAAP Principles. The new MTOP states the objective clearly assuming that all activities will be grounded in the FAAP Principles and guided by the CAADP Country Compact and National Agricultural Investment Plans.

e) Changes to Components 1 and 3. The three Strategic Priorities described in paragraphs (i) through (vi) below will replace the current Networking Support Functions (NSFs) of Component 1.

(i) Alignment of Component 1 with the new Strategic Priorities Structure. Component 1 is aligned to the revised Strategic Plan and focuses on: (i) envisioning the agricultural transformation that Africa wants and how to achieve it; (ii) ensuring that Africa has sufficient human and institutional capacity integrated to implement its agricultural ambitions; and (iii) making sure that policy makers get the evidence-based information they require to create enabling policy environments and that their constituents are well informed

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and support the changes. These vital roles attributed to FARA are distilled into three Strategic Priorities that make up the new component structure of the MTOP:

(ii) Strategic Priority 1: Visioning Africa’s agricultural transformation – with foresight, strategic analysis and partnerships. The objective of this component is to enable more productive engagement between the public and private sectors in all aspects of supply and value chains. This will lead to the ‘creation’ of an integral agricultural innovation system along with improved trade (especially intra-Africa trade) and marketing. This component will promote new models that are sufficiently open and resilient enough to cope with future risk and uncertainty and able to accommodate socio-political discontinuities. The models must allow for anticipation and proactive input, leading to the development of robust investment planning. FARA will underpin this by promoting analyses to guide internal and external private and public investment.

(iii) In this endeavor, FARA will become more engaged with the AUC’s political/ collaborative frameworks. This includes providing evidence for decision-making on IAR4D at AU Ministerial Conferences (e.g. Conference of African Ministers of Agriculture); AU Heads of States and Governments Summits; the CAADP Partnership Platform; Africa-European Union Joint Strategy; Africa–India, Africa–Brazil, Africa–China and Africa–Australia and the Africa–Arab research exchange in the context of the Joint Action Plan on Agriculture and Food Security. Spearheading the African science agenda for agriculture, FARA will continue to fulfill its mandate by spearheading and facilitating the Dublin Process for developing the African Science Agenda for Agriculture. In this process, FARA will ensure that African regions are brought into the science agenda and enabled to contribute and build Africa’s self-reliance in agricultural sciences. Additionally, FARA will continue to promote intra- and inter-continental platforms and partnerships, building on experiences from the North–South and South–South partnerships that have developed over the last ten years.

(iv)Strategic Priority 2: Integrating capacities for change – by connecting and learning. The objective is to advocate, catalyze and facilitate the strategic reforms, processes and mechanisms that will connect and combine the capacities of actors within the knowledge system. FARA will strengthen interactions and partnerships among farmers, research, education, extension, and trade and agribusiness organizations. It will continue to support such recently established regional organizations as AFAAS, CCARDESA, NASRO, PAFFO and TEAM Africa, until they become fully established. It will also continue to encourage and foster links between these organizations and others4 and the specialized agencies of the AU. FARA will support the development of partnerships between countries, institutions and local programs as a means to enhance capacity strengthening, while bringing together the critical mass needed to undertake complex agricultural training and advisory tasks.

(v) FARA will undertake activities to link research, education and business for agricultural

innovation. Particular attention will be paid to creating entrepreneurs by establishing 4 Including the African Network for Agriculture, Agroforestry and Natural Resources Education (ANAFE), Permanent Interstates Committee for Drought Control in the Sahel (CILSS), Centre international de recherche-développement sur l'elevage en zone subhumide (CIRDES), International Centre of Insect Physiology and Ecology (ICIPE), International Trypanotolerance Centre (The Gambia) (ITC), PanAAC, PANGOC and Regional Universities Forum for Capacity Building in Agriculture (RUFORUM)

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appropriate courses and including soft skills, internships and industrial attachments. FARA will therefore deepen its engagement by creating the appropriate conditions for the involvement of the private sector in research, extension and education. This should enable the private sector to become a genuine partner in terms of setting the agenda, carrying out research and investing in research. These actions will make graduates and research products more fit-for-purpose in Africa’s present and future agricultural industry and lead to faster dissemination and uptake of new technologies. Since smallholder producers and farmers – particularly women – constitute the largest sub-sector within the private sector, particular attention will be paid to their needs, extending beyond access to information to empowering their learning and acquisition of knowledge.

(vi)Strategic Priority 3: Creating an enabling environment for implementation – by advocating and communicating. The objective for pro-agricultural development advocacy is to convince African governments that strong agricultural innovation systems are the linchpins of economic development and food security and they must invest more themselves and rely less on donors. Moreover, FARA will maintain a knowledge hub to support strategic agricultural policy formulation and improve the performance of agricultural markets; focus will be on promoting evidence-based enabling policy options, encouraging and facilitating increased and sustained investments in agricultural science and innovation, creating a network of appropriate policy analysis institutions and encouraging them to work synergistically in undertaking policy analysis and market research based on their different comparative advantages. It will promote networking and facilitate engagement among the economic research community and policy makers concerning strategic policy issues affecting agricultural development in Africa. It will also promote the exchange of economic policy research results and the sharing of best practice policy options among policy research institutions, policy makers and the broader community of CAADP stakeholders through several avenues, including workshops, seminars, conferences and publications.

(vii)Component 3. The original Component 3 was to provide sub-grants to beneficiaries for specific development projects involving research and advocacy in support of NSFs 1 through 4. SROs, NARS, agricultural ministries, agencies responsible for leading CAADP roundtable processes, sub regional agricultural policy organizations, and secretariats of sub-regional and regional higher education fora were expected to receive support through on-granting arrangements. Due to delays in obtaining FARA Board approval on the Sub-grants manual, most activities were implemented by consultants contracted directly by the FARA Secretariat. Furthermore, the overall approach to FARA sub-grants was redesigned with sub-projects no longer financing research or civil works. Under the additional financing, FARA will provide sub-grants for specific sub-projects for advisory services, agricultural education and research and development to regional and sub-regional organizations. These sub-projects will support capacity building, training, networking and advocacy.

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Table 2: Revised Project Costs as a Result of the Additional Financing

Component

Original PAD

budget (US$M)

Disbursed & Committed

MDTF Funds

Proposed Additional Financing (US$M)

Total revised budget with Additional Financing

1. Networking Support Functions (original) / Strategic Priorities (recipient) 10.43 8.79 11.66 20.45

2. Corporate Governance Reform Stream and Program Management (recipient) 21.57 21.88 29.08 50.96

3. Sub-Grants for Sub-Projects (recipient) 12.30 1.3 2.72 4.024. Management and Supervision of the MDTF

(Bank-executed) 1.60 1.58 1.53 3.11

Total 45.90 33.55 45.00 78.55

IV. Appraisal Summary

27. Technical Analysis: The project approach and design are technically sound. The proposed structure of the AF builds on and utilizes the existing MDTF structure. FARA’s interventions will address the need for better regional representation of research, extension, education, policy and business in the implementation of CAADP. It will strengthen interactions and partnerships among farmers’, research, education, extension, trade and agribusiness organizations. It will continue to support such recently established regional organizations as AFAAS, CCARDESA, NASRO, PAFFO and TEAM Africa, until they become fully established. The design of the AF activities is based on the existing technical and institutional arrangements that have been strengthened during implementation of the original MDTF. It also assumes that there will be flexibility both in the structure of the organization as well as the Secretariat’s skill-mix in response to the changes in strategic priorities and changed directions (including specialists in foresighting, capacity building, etc.), in addition to adjustment that may be required due to shortage of funds.

28. Economic Analysis. Public sector provision and financing as an appropriate vehicle. Important aspects of agricultural research and agricultural extension are public goods in the sense that they have large returns that cannot be captured by the private sector. This is particularly true for research related to staple and non-commercial crops that are important for the welfare of poor households (farming and otherwise). For this reason, public sector financing of agricultural research and agricultural extension at the national level has long been understood as well-justified in order to overcome underinvestment in these activities that would otherwise not be obtained in the absence of public sector funding. Collaborative public sector financing of regional ARD efforts is also needed at the regional and continental level to address the failure of national or sub-national systems to create ARD spillovers. Since many of the actual benefits of agricultural research spill across borders, individual countries planning on their own substantially underinvest in programs that are relevant beyond their own borders. Further, without collaboration, there is significant overlap (and re-inventing of the wheel) between national programs and failure to take advantage of possible economies of scale in ARD efforts where it would be beneficial. Without collaborative public funding at the regional and continental levels, the impact of research

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programs will be well below what it could otherwise be. The creation of larger shared technology spaces (i.e., spaces larger than the geographic boundaries of individual countries) has proven to be an effective solution for increasing efficiency in the face of common problems, reducing duplication and addressing issues of the fragmentation associated with small country systems. FARA is a not-for-profit international organization which addresses this issue directly by coordinating the efforts of national ARD programs and by making additional resources available to them to collaborate in their priority setting as well as in the implementation of their programs. These programs encourage and nurture private sector ARD initiatives, and sometimes employ private sector actors in the implementation of programs that have public sector financing. It should be noted that at present private sector involvement in agricultural research remains relatively limited in Africa and often targets a narrow range of commercial crops and focuses almost exclusively on new varietal development. Staple food crops – which are key to addressing food security and nutrition issues – are often not part of the private ARD research agenda, which focuses on maximizing sale of commercial seed. Private sector research does not address the wider technology space which includes agronomic practices, socio-economic studies and the issues of gender and climate change adaptation.

29. World Bank value added. The World Bank has been instrumental in identifying the need for investment in regional and continental approaches to ARD in African agriculture and in the design of programs to address this need, as well as in the mobilization of resources to launch and fund these programs. The Bank has played a key convening role with a core group of development partners (the World Bank, CIDA, DfID, EC, and USAID) as well as with African institutions at every level (including key CAADP lead organizations). The Bank has also provided critical support toward building the capacity of FARA and other SROs to be able to develop and implement their programs effectively. These are roles that no other actor or institution would have been able to play, and this continues to be the case.

30. Economic viability of the proposed levels of investment in FARA. Currently, FARA’s annual budget is in the range of US$15-20 million per year. FARA makes important contributions in several areas including: improving collaboration across national and regional ARD efforts; developing the capacity of ARD programs at every level; improving coordination between African ARD efforts and those of global partners; and improving the enabling environment for ARD at every level in Africa through CAADP. It has been estimated (through an enormous literature entailing thousands of studies) that returns to agricultural research globally are on the order of a very impressive 75%. In Africa, returns have also been impressive, but have been on the order of 50%. FARA contributes toward raising African returns to agricultural research above this historical level toward global standards. If FARA succeeds in raising returns to agricultural research on the continent by one half of one percent (to 50.5%), this alone would more than justify FARA’s entire budget. FARA’s contributions in other areas would be in addition to this. This level of impact appears to be a very modest expectation relative to reasonable expectations of FARA’s impact – and suggests the strong economic viability of the investment in FARA’s budget.

31. Institutional set up and implementation arrangements. All AF activities will be implemented and managed through the MDTF’s existing institutional, implementation,

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fiduciary, safeguards and monitoring arrangements. FARA has developed the required management capacity with highly qualified and skilled staff, and functioning procurement, financial management and M&E systems and will continue to have overall responsibility for the management of the AF activities. This would include the carrying out of procurement, monitoring, evaluation and reporting functions in accordance with World Bank Procurement Guidelines dated January 2011, Anti-Corruption Guidelines5, FARA’s Operational Manual and the Grant Agreement. The Bank will carry out its usual implementation support function through regular supervision of the MDTF support and FARA’s implementation of it SP and MTOP.

32. FARA implemented its last Strategic Plan with a full complement of governance structures. These have been tested and have evolved to meet the demands faced by FARA as a continental forum that acts in accordance with the subsidiarity principle and with the other principles set out in FAAP.

33. Financial management. Financial management at the FARA Secretariat has been rated “satisfactory” for most of the grant life, and over the past year, “highly satisfactory”. The risk rating is low. The FARA Secretariat has been submitting timely and acceptable semi-annual IFRs and withdrawal applications to the Bank. All audits reports are current and there are no pending audit issues. The financial management assessment conducted during the last Implementation Support Mission determined that FARA’s arrangements satisfied the Bank’s minimum requirements as set out in OP/BP 10.00. All audits are current and unqualified. The FM capacity of the existing team at the FARA Secretariat level is strong. It has per the Bank’s recommendation, been further strengthened through the recent recruitment of an additional financial management officer. For purposes of the proposed AF, an update to the financial management assessment conducted at preparation of the parent MDTF was carried out. The conclusion is that the current FM arrangements will remain the same and are sufficient to properly handle the additional resources.

34. Flow of Funds: Funds will continue to be channeled through FARA’s existing designated account (DA) denominated in United States Dollars.

35. Disbursement Arrangements: FARA will continue to use the agreed report based method of disbursement. Withdrawal requests will comprise a cash flow forecast projection and un-audited Interim Financial Report (IFR) for a six month period. The IFR will show the accountability of funds utilized during the six month period.

36. Procurement: FARA’s current procurement performance is rated as “satisfactory” and its risk rating is low. Procurement capacity at the FARA Secretariat is deemed adequate for the new MTOP. Procurement activities will continue to be carried out in accordance with the World Bank’s “Guidelines: Procurement of Goods, Works and Non-consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers” dated January 2011 (“Procurement Guidelines”) and “Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers” dated January 2011 (“Consultant Guidelines”).

5 “Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants”, dated January 2011 (“Anti-Corruption Guidelines”).

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37. Environmental and Social Safeguards. The proposed AF is a category C. However, the original MDTF was classified as a category B – Partial Assessment, triggering forestry, pest management and international waterways safeguard policies. During project implementation, the overall approach to FARA sub-grants was not designed to finance any research or civil works. Therefore, none of the three policies were triggered during the current project implementation. Under the additional financing, the support to be provided through sub-grants would be of the same nature, so again, no safeguard policies are expected to be triggered. Accordingly, the Environmental Category was re-categorized from B – Partial Assessment (original) to Category C – Not Required (additional financing).

38. Monitoring and Evaluation: FARA’s current M&E arrangements are satisfactory. Overall monitoring and evaluation of the MTOP will continue to be the responsibility of the FARA Secretariat, although the results and outcomes and outputs of the Strategic Priorities outlined above will be implemented largely through partnerships and alliances between and within Forum members, the Secretariat and external partners. This mechanism of delivering results through a network of implementing partners, over whom the FARA Secretariat has no direct control, is a challenge, and requires an M&E framework and plan that facilitates collective responsibility, and harmonizes guidelines and processes. FARA’s M&E system is designed to meet this challenge and will be centered on tracking and reporting performance against activity milestones and output, outcome and impact indicators. A detailed performance monitoring plan (PMP) has been developed on the basis of the indicators and targets specified in the results framework (see Annex 1) as part of an embedded performance monitoring system at continental, sub-regional and national levels. An implementation monitoring system will assess the degree to which the implementation process complies with work plans and budgets in order to ensure timely delivery of outputs. All the data and information will be generated by the implementing agencies/units following well-defined reporting formats. Significant efforts will also be put into refining the Key Performance Indicators (KPIs) in the results framework, so that implementers report on milestones on a regular basis. There are higher level indicators in the results framework to link FARA outputs to the anticipated higher level benefits. Finally, since there are several new indicators for which the baselines are not available, a baseline survey will be undertaken within the first 6 months of effectiveness of the additional financing to the FARA MDTF (i.e. by June 30, 2014).

39. Risk Assessment: The overall risks for implementation of the AF activities are moderate. FARA will continue to use its well-established governance and operational systems and procedures for implementing MTOP II, as detailed in the World Bank and FARA Board of Directors approved Operational Manual (OM). FARA staff have acquired the experience and skills necessary to ensure successful implementation of the AF activities. Implementing partners, however, may not be sufficiently responsive, particularly with respect to provision of data or progress reports. Given the current global economic situation, securing funding for MTOP II from both traditional and non-traditional sources will be critical and a concerted fundraising exercise will be required during MTOP II implementation to avoid a financing gap and the risk of partial implementation of MTOP II. Details of the risks and risk management measures are in the attached ORAF.

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40. Sustainability: The revised Strategic Plan requires FARA to undertake actions that will minimize the current heavy reliance on development partners6. The recommended actions include resource mobilization from African governments and the private sector. The Secretariat will also strengthen its approach to mobilizing resources by working more closely with the private sector and promoting a meeting of minds between the leaders of agribusiness and African agricultural research institutions, universities and capacity-strengthening organizations. From the perspective of capacity building and long-term sustainability, FARA has supported the establishment of regional organizations such as AFAAS, CCARDESA, NASRO, the PAFFO and TEAM Africa. Some of these are fully established and ready to assume responsibilities that FARA has been handling so far; and will support the others to assume more responsibility so that it can focus on its new strategic priorities. Moreover, FARA’s interventions have and will ensure sustainability by supporting the development of partnerships between countries, institutions and local programs as a means to enhance capacity strengthening, while bringing together the critical mass needed to undertake complex agricultural training and advisory tasks. The participatory and inclusive approach FARA used to prepare the Strategic Plan and the MTOP will help in understanding roles and responsibilities among various actors and will mobilize partners towards achieving its goals and objectives.

41. Implementation Support. The Bank’s task team will primarily consist of a Lead Agricultural Specialist and a Senior Operations Officer who will handle the day to day management of the MDTF. The team will be supported by the relevant representatives of the Bank’s service units (FM, procurement, legal, loan, TF administration, etc.). To ensure that grant resources are being used effectively in pursuit of the PDO, the World Bank (as administrator of the MDTF) will undertake biannual implementation support missions. In addition, a mid-term review (MTR) is envisaged over the five-year implementation period. This is a hybrid MDTF with Bank and recipient-executed components, hence customized fees will be applied to allow for 100% recovery of the Bank’s supervision and TF administration costs.

6 Approximately 50% of FARA’s budget is derived from the MDTF, and the other 50% from bilateral support to time-bound activities. A minimal amount is contributed by member countries, but this is expected to increase based on recent pledges (e.g. Nigeria).

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Annex 1. Comparison of Current and Proposed Indicators

Revisions to the Results Framework Comments/Rationale for Change

PDO

Current (PAD) ProposedTo align African agricultural institutions at the national, regional and continental levels with CAADP Pillar IV FAAP Principles for effective research, extension, and training and education.

To strengthen Africa’s capacity for agricultural innovation with purposefully determined outcomes, creating capacity for innovation and enabling environments for implementation.

The CAADP transformative phase requires a major strategic re-orientation to align the FARA strategic plan and MTOP with the “sustaining CAADP momentum” agenda that focuses on engaging Africa’s political leadership to ensure conducive and stable policy environment; and increased systemic capacity, inclusiveness and evidence based action to improve public sector planning, implementation and review.

PDO indicators

Current (PAD) Proposed change*Sub-regional agricultural research, extension and education institutions have developed and implemented FAAP compliant policies and programs.

Dropped. PDO changed. Captured under revised indicator at intermediate results level.

National agricultural research, extension and education institutions have developed and implemented FAAP compliant policies and programs.

Dropped. PDO changed. Captured under revised indicator at intermediate results level.

Number of FAAP compliant CAADP country compacts addressing agricultural research, advisory services, and higher education

Dropped. PDO changed. Captured under revised indicator at intermediate results level.

Number of FAAP compliant regional CAADP compacts addressing agricultural research, advisory services, and higher education signed.

Dropped. PDO changed. Captured under revised indicator at intermediate results level.

% of AWP programs/ activities implemented on target, on budget and time

Dropped from PDO but continued as indicator at intermediate results level.

See indicators at intermediate results level

Percentage increase in number of individuals, groups, organizations directly affected or reached by FARA interventions (disaggregated by gender)

New. Stated to reflect changes in inclusiveness and participation in the African agriculture innovation system resulting from the implementation of FARA (the Forum) interventions.

Percentage increase in core competencies, capabilities and capacities for innovation among targeted (individual, organizational/inter-organizational and/or

New. Stated to reflect changes in systemic capacities for African agriculture innovation resulting from the implementation of FARA (the

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Revisions to the Results Framework Comments/Rationale for Change

institutional) ARD actors7 Forum) interventions.Degree of stakeholder satisfaction with FARA performance and quality of products and services

New. Introduced to capture how effective and relevant FARA is in terms of advancing the Africa agenda.

Level of annual contributions by African Governments and institutions to FARA funding

New. Introduced to reflect concern for increased African ownership and investment.

Intermediate Results indicators

Current (PAD) Proposed change*NSF 1. Number of CIPs that integrate CAADP Pillar IV elements (agricultural research, advisory services, and education)

Number of countries and RECs in which FAAP principles and guidelines have been embedded in CAADP national and/or regional compacts and AFSIPs

Revised to capture current indicator and the 4 dropped from PDO level

NSF 2(a). Number of gender-sensitive continental platforms on knowledge exchange and technology dissemination for ARD in Africa established.

Number of platforms used for information delivery and exchange

Revised

NSF 2(b). Number of stakeholders using gender-sensitive knowledge management tools for knowledge exchange at continental level (disaggregated)

Number of stakeholders (individuals, institutions disaggregated by country, region, gender, stakeholder category) reached with information through continental information and knowledge sharing platforms (websites, publications, visual and social media)

Revised

NSF 3(a). Number of briefs on strategic analysis of policy and market issues produced.

Number of information and knowledge products/packages (briefs, reports, scientific papers and publications documentaries) produced and made available to stakeholders

Revised to capture 3(a), 3(b) and other publications

NSF 3(b). Number of policy recommendations synthesized from policy dialogues.NSF 4(a). Number of capacity strengthening initiatives developed & implemented.

Dropped Covered under new improved indicator

NSF 4(b). % targeted organizations showing improved performance.

Dropped Covered under new improved indicator

NSF 5(a). Number of functional innovation platforms established.

Number of functional partnerships and platforms for agricultural innovation and trade among African stakeholders and between them and northern and southern partners established

Revised and merged 5(a) and 5(c)

NSF 5(b). Number of institutions (SROs, NARS, NARS, private sector, farmer organizations) that have adopted the innovation platform approach.

Dropped Covered under new improved indicator on participants reached

7 Competencies are the ‘energies, skills and abilities of individuals’; capabilities the ‘collective ability of a group or a system to do something either inside or outside the system. The collective skills involved may be technical, logistical, managerial or less tangible (i.e. the ability to earn legitimacy, to create trust to adapt, to create meaning etc.)’ whilst capacity refers to the ‘overall ability of an organization or system to achieve technical results (perform), build more effective and dynamic relationships among multiple actors, facilitate resourcefulness, continuously learn and adapt to new challenges and create value for others’, whereby the system must balance and integrate the many capabilities it has developed through both formal human capital formation (training) and organizational/institutional development/strengthening interventions.

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Revisions to the Results Framework Comments/Rationale for Change

NSF 5(c). Number of partnerships and Strategic Alliances established.

Dropped See 5(a) above

CGRS (a). Unqualified external audits endorsed by the Board.

Dropped Covered under new improved indicator on compliance

CGRS (b). All agreed recommendations from reviews and Board resolutions incorporated into governance documents, operations and policy manuals.

Dropped Covered under new improved indicators on compliance and pluralism

CGRS (c). Number of CAADP Pillar IV institutions that integrate elements of the Gender Mainstreaming Strategy into their programs.

Dropped Gender disaggregation for majority of indicators

Number of Countries with ARD agendas being influenced by the outcome of foresight studies

New

Number of participants reached, participating or contributing to innovation platforms, consultations, workshops, meetings (individuals, institutions disaggregated by country, region, gender, stakeholder category).

New. Incorporates elements of 5(b)

Number of institutions adopting FARA-initiated interventions or mechanisms for identifying, articulating and/or addressing capacity needs

New

Number of institutions (disaggregated by category) whose capacity development needs have been assessed and/or supported (enhanced knowledge, skills and attitudes of individuals delivered through training workshops; changes in organizational design and culture, accountability, responsiveness , transparency and efficiency)

New

Number of functional Communities of Practice for creating gender-sensitive capacities formed and addressing identified capacity deficits in the design & implementation of AR&D programs

New

Degree of improvement in availability of ICTs (magnitude of ICT speed and capacity performance, reliability of internet access, equity, service quality, cost-effectiveness)amongst targeted NARS institutions

New

Pluralistic decision making processes (stakeholder representation in governance bodies, program management)

New

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Revisions to the Results Framework Comments/Rationale for Change

Compliance with operational procedures and standards

New

Percentage annual growth of FARA reserve fund

New

Percentage of AWP activities implemented on target, on budget and time

New for intermediate results, originally at PDO level

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Annex 2. Revised Results Framework and Monitoring Indicators8 for FARA MTOP 2014–2018

Performance IndicatorsUnit of

MeasureBaseline9

2013

Target and(Actual) Cumulative Values

YR 12014

YR 22015

YR32016

YR 42017

YR52018

Project Development Objective: To strengthen Africa’s capacity for agricultural innovation with purposefully determined outcomes, creating capacity for innovation and enabling environments for implementation.

Indicator 1: Percentage increase in number of individuals, groups, organizations directly affected or reached by FARA interventions (disaggregated by gender) (10% annual increment)

Number & Percent

TBD10%

(#)

10%

(#)

10%

(#)

10%

(#)

10%

(#)

Indicator 2: Percentage increase in core competencies, capabilities and capacities for innovation among targeted (individual, organizational/inter-organizational and/or institutional)ARD actors10 (cumulative improvement)

Percent TBD%5%

(%)

10%

(%)

15%

(%)

20%

(%)

25%

(%)

Indicator 3: Degree of stakeholder satisfaction with FARA performance and quality of products and services (10% annual increment)

Percent TBD10%

(%)

10%

(%)

10%

(%)

10%

(%)

10%

(%)

Indicator 4: Level of annual contributions by African Governments and institutions to FARA funding (as % of FARA revenue)

Percent 0%0.5%

(%)

1.0%

(%)

1.5%

(%)

2.0%

(%)

2.5%

(%)

INTERMEDIATE RESULTS

Key Result 1: African agricultural stakeholders determining how the sector should be transformed and establishing the needed collective actions in a gender sensitive manner

Indicator 1: Number of Countries with ARD agendas being influenced by the outcome of foresight studies (at least 1 country in each of 3 SROs every year)

Number 03

(#)

6

(#)

9

(#)

12

(#)

15

(#)

Indicator 2: Number of functional partnerships and platforms for agricultural innovation and trade among African stakeholders and between them and northern and southern partners established (10% annual growth)

Number 133146

(#)

161

(#)

177

(#)

195

(#)

214

(#)

Indicator 3: Number of participants reached, participating or contributing to innovation platforms, consultations, workshops, meetings (individuals, institutions disaggregated by country, region, gender, stakeholder category). (10% annual increment)

Number TBD10%

(#)

10%

(#)

10%

(#)

10%

(#)

10%

(#)

8 This Results Framework only captures the indicators relevant to the additional financing.9 There are several new indicators for which the baselines are not available, therefore, a baseline survey will be undertaken within the first 6 months of effectiveness of the additional financing to the FARA MDTF (i.e. by June 30, 2014).10 Competencies are the ‘energies, skills and abilities of individuals’; capabilities the ‘collective ability of a group or a system to do something either inside or outside the system. The collective skills involved may be technical, logistical, managerial or less tangible (i.e. the ability to earn legitimacy, to create trust to adapt, to create meaning etc.)’ whilst capacity refers to the ‘overall ability of an organization or system to achieve technical results (perform), build more effective and dynamic relationships among multiple actors, facilitate resourcefulness, continuously learn and adapt to new challenges and create value for others’, whereby the system must balance and integrate the many capabilities it has developed through both formal human capital formation (training) and organizational/institutional development/strengthening interventions.

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Performance IndicatorsUnit of

MeasureBaseline

2013

Target and(Actual) Cumulative Values

YR 12014

YR 22015

YR32016

YR 42017

YR52018

Key Result 2: Strengthened and integrated continental capacity responding to stakeholder demands within the agricultural innovation system in a gender sensitive manner

Indicator1: Number of institutions adopting FARA-initiated interventions or mechanisms for identifying, articulating and/or addressing capacity needs

Number 030

(#)

60

(#)

90

(#)

120

(#)

150

(#)

Indicator 2: Number of institutions (disaggregated by category) whose capacity development needs have been assessed and/or supported (enhanced knowledge, skills and attitudes of individuals delivered through training workshops; changes in organizational design and culture, accountability, responsiveness , transparency and efficiency)

Number 030

(#)

60

(#)

90

(#)

120

(#)

150

(#)

Indicator 3: Number of functional Communities of Practice for creating gender-sensitive capacities formed and addressing identified capacity deficits in the design & implementation of ARD programs (10% annual increment)

Number TBD10%

(%)

10%

(%)

10%

(%)

10%

(%)

10%

(%)

Key Result 3: Enabling environment for increased AR4D investment and implementation of agricultural innovation systems in a gender sensitive manner

Indicator1: Number of countries and RECs in which FAAP principles and guidelines have been embedded in CAADP national and/or regional compacts and AFSIPs

Number 3233

(#)

34

(#)

35

(#)

36

(#)

37

(#)

Indicator 2: Number of information and knowledge products/packages (briefs, reports, scientific papers and publications documentaries) produced and made available to stakeholders (10% annual increment)

Number TBD10%

(#)

10%

(#)

10%

(#)

10%

(#)

10%

(#)

Indicator 3: Number of people reached with information through continental information and knowledge sharing platforms (websites, publications, visual and social media)

Number

78,986 (FARAnet – 2821; eRAILS – 73,785; FARA Facebook – 691; and Twitter – 1,689).

95,573

(#)

105,130

(#)

115,643

(#)

127,208

(#)

139,929

(#)

Indicator 4: Number of platforms used for information delivery and exchange

Number 5470

(#)

91

(#)

119

(#)

154

(#)

200

(#)

Indicator 5: Degree of improvement in availability of ICTs (magnitude of ICT speed and capacity performance, reliability of internet access, equity, service quality, cost-effectiveness)amongst targeted NARS institutions (cumulative improvement)

Percent TBD%50%

(%)

60%

(%)

65%

(%)

70%

(%)

75%

(%)

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Performance IndicatorsUnit of

MeasureBaseline

2013

Target and(Actual) Cumulative Values

YR 12014

YR 22015

YR32016

YR 42017

YR52018

Strengthened gender responsive governance and management systems

Indicator 1: Pluralistic decision making processes (stakeholder representation in governance bodies, program management)

PercentOn

courseOn

courseOn course On course On course

Indicator 2: Compliance with operational procedures and standards

Percent OM & GMOn

courseOn

courseOn course On course On course

Indicator 3: Percentage annual growth of FARA reserve fund (10% annual growth)

Percent US$1m

US$1.10m

(%)

US$1.21m

(%)

US$1.33m

(%)

US$1.46

(%)

US$1.61

(%)

Indicator 4: Percentage of AWP activities implemented on target, on budget and time

Percent 96%100%

(%)

100%

(%)

100%

(%)

100%

(%)

100%

(%)

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Annex 1 Operational Risk Assessment Framework (ORAF)Africa: Forum for Agricultural Research in Africa Multi-Donor Trust Fund (P147000)

Risks.

Project Stakeholder Risks

Stakeholder Risk Rating Moderate

Risk Description: The scale and scope of FARA’s activities expose it to a large number of external variables over which it has limited or no control. These include, for example: (i) donors may not adhere to FAAP and the Paris Declaration on Aid Effectiveness and the Accra Declaration; (ii) SROs limited resources and institutional capacity to be effective; (iii) African governments and institutions support for FARA’s initiative limited; and (iv) lack of implementation of enabling policies effectively at the appropriate levels.

Risk Management: FARA is aware that certain risks are beyond its control and will carefully monitor their importance and the likelihood of the assumptions in these respects failing to hold. As far as possible, such threats have been brought under control by addressing them in the design of the Strategic Plan. Moreover, appropriate action will be taken when necessary to address any threats to successful implementation of this MTOP, through AUC/NEPAD, the Board and the General Assembly of the Forum.

Resp: Client Stage:Implementation

Recurrent: Due Date: N/A Frequency:Annually

Status:On-going

Implementing Agency (IA) Risks (including Fiduciary Risks)

Capacity Rating Moderate

Risk Description: Risk Management:Due to possible funding limitations, FARA may need to rely more heavily on its own staff, rather than external consultants to undertake implementation of the MDTF activities. In this regard, FARA may be constrained to deliver continental outputs and outcomes envisaged in its strategic priorities and presented in detail in its MTOP II.

The FARA Secretariat will maintain a lean staffing structure. It will follow a strategy whereby the Secretariat provides the services required by FARA stakeholders capturing the added value of thinking and acting across the four sub-regions (ASARECA, CORAF, CCARDESA, NASRO). FARA’s participatory approach also requires considerable and continuous consultation among stakeholders in the form of workshops, meetings, conferences and other events, many of which are convened and organized by the Secretariat. The Secretariat’s activities are developed in consultation with the SROs and stakeholders in order to assert that they are indeed stakeholder priorities and that there are substantial advantages to be gained from engaging in them at continental level.

Resp: Client Stage: Design & Recurrent: Due Date: N/A Frequency: N/A Status:

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implementation On-going

Governance Rating Low

Risk Description: There are no governance risks anticipated. FARA has a solid governance structure in place, which has been tested for the past 4.5 years of implementation.

Risk Management: The original MDTF has a dedicated component on strengthening FARA’s governance and management structures. Under the proposed AF, FARA will continue to allocate resources for governance and management related activities.

FARA’s existing internal control systems have been effective and this system will be strengthened to carry out the needed controls per the institution's administrative and management procedures and regulations, and recommend follow up actions when needed.

Resp: Client Stage: Design and implementation

Recurrent: Due Date: N/A Frequency: N/A Status:On-going

Project Risks

Design Rating Low

Risk Description: The SPs use FARA’s human and physical resources to deliver a series of results. In stating what it will deliver through the activities and results detailed in this MTOP, FARA assumes that these variables will have no significant negative influence on its performance and most are mitigable.

Risk Management: The Bank Team, Development Partners and FARA review implementation twice a year. If there are noticeable deficiencies in the project design, the joint implementation review team will take appropriate measures, including restructuring of the project, if necessary.

Resp: WB & Client

Stage: Implementation

Recurrent: Due Date: N/A Frequency: Bi-annually

Status: Not Yet Due

Social and Environmental Rating N/A

Risk Description: Women play a dominant role in African agriculture and yet inadequate attention is given to women’s issues when programs and projects are formulated. Either FARA or its partners could give inadequate attention to gender specific circumstances resulting in a gender gap in terms of socio-economic benefits.

Risk Management: To position gender in its rightful place in the innovation system, FARA’s Gender Strategy (approved by the FARA Board of Directors in April 2013) defines the stimulating and facilitating role of FARA both in-house and with partners in order to mainstream gender at various levels. This will ensure that there is gender responsiveness in actions, results and systems, as well as resource allocation both within FARA and among partner institutions.Resp: Client Stage:

ImplementationRecurrent: Due Date: N/A Frequency: N/A Status: On-

going

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This MDTF will remain a category C classification for social and environmental safeguards, therefore ratings and mitigation measures are not applicable.

Risk Management: N/A

Resp: N/A Stage: N/A Recurrent: Due Date: N/A Frequency: N/A Status: N/A

Program and Donor Rating Substantial

Risk Description: Currently FARA’s source of funding depends largely on the MDTF, with a limited amount coming from bilateral donors in the form of non-MDTF funding. The extent to which the donor support will continue to be strong is hard to establish at this stage. A funding gap during the MTOP period is likely and a concerted effort will be necessary to mobilize resources during implementation of MTOP II.

Risk Management: The FARA Multi-Donor Trust Fund (MDTF) will be the primary source of sustained funding and will continue to be managed by the World Bank. FARA has developed and will implement a resource mobilization strategy which focuses on nurturing and maintaining partnerships with existing “traditional donors” to garner higher levels of contributions. It also targets non-traditional donors, including the private sector.

The Strategic Plan requires FARA to undertake actions that will minimize the current heavy reliance on development partners. The recommended actions include resource mobilization from African governments. The FARA Secretariat will intensify its engagement with African governments by engaging key stakeholders as expert representatives for FARA in international forums with a view to benefiting from a wider pool of expertise than already present in the Secretariat. This will also raise awareness of FARA and promote commitment to it among those in a good position to influence funding decisions in African governments and regional institutions.

Resp: Client Stage: Design & implementation

Recurrent: Due Date: N/A Frequency: N/A Status:On-going

Delivery Monitoring and Sustainability Rating Moderate

Risk Description: Fragmented and weak monitoring capacities at the SRO and other partner organizations may affect the delivery of high quality monitoring data.

Risk Management: A detailed performance-monitoring plan (PMP) will be developed on the basis of the indicators and targets specified in the results matrix as part of an embedded performance monitoring system at continental, sub-regional and national levels. Through the process of indicator integration, the standard and custom indicators identified for MTOP II (in accordance with the CAADP M&E framework) will be further discussed and refined with input from stakeholders. Additionally, FARA will support the continental organizations in developing effective structures and systems for data collection, analysis and reporting. Similarly, an automated data collection, analysis and reporting system will be developed and promoted among key institutions participating in the African agriculture innovation system.

Resp: Client Stage: Design & implementation

Recurrent: Due Date: N/A Frequency: N/A Status: On-going

Overall Risk

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Overall Implementation Risk: Moderate

Risk Description: The overall implementation risk for the AF activities is moderate. Implementation of the activities will be carried out through the existing and well established implementing arrangements (procurement, financial management, M&E) that have been improved during the course of implementation of the present MDTF. The reorientation of FARA’s strategic priorities has removed some of the risks that were associated with the implementation of MTOP I, namely those activities that were not directly under the control of the forum, as well as the Secretariat. However, the uncertainty regarding donor financing and resource mobilization efforts could have a serious impact on FARA’s ability to implement its program, resulting in an overall risk of moderate.

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